SB3538 EnrolledLRB096 18789 AMC 34174 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-113.2, 3-111, 3-111.1, 3-112, 3-125, 4-109,
64-109.1, 4-114, 4-118, 5-167.1, 5-168, 6-164, 6-165, and
77-142.1 and by adding Sections 1-113.4a, 1-165, 5-238, and
86-229 as follows:
 
9    (40 ILCS 5/1-113.2)
10    Sec. 1-113.2. List of permitted investments for all Article
113 or 4 pension funds. Any pension fund established under
12Article 3 or 4 may invest in the following items:
13    (1) Interest bearing direct obligations of the United
14States of America.
15    (2) Interest bearing obligations to the extent that they
16are fully guaranteed or insured as to payment of principal and
17interest by the United States of America.
18    (3) Interest bearing bonds, notes, debentures, or other
19similar obligations of agencies of the United States of
20America. For the purposes of this Section, "agencies of the
21United States of America" includes: (i) the Federal National
22Mortgage Association and the Student Loan Marketing
23Association; (ii) federal land banks, federal intermediate

 

 

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1credit banks, federal farm credit banks, and any other entity
2authorized to issue direct debt obligations of the United
3States of America under the Farm Credit Act of 1971 or
4amendments to that Act; (iii) federal home loan banks and the
5Federal Home Loan Mortgage Corporation; and (iv) any agency
6created by Act of Congress that is authorized to issue direct
7debt obligations of the United States of America.
8    (4) Interest bearing savings accounts or certificates of
9deposit, issued by federally chartered banks or savings and
10loan associations, to the extent that the deposits are insured
11by agencies or instrumentalities of the federal government.
12    (5) Interest bearing savings accounts or certificates of
13deposit, issued by State of Illinois chartered banks or savings
14and loan associations, to the extent that the deposits are
15insured by agencies or instrumentalities of the federal
16government.
17    (6) Investments in credit unions, to the extent that the
18investments are insured by agencies or instrumentalities of the
19federal government.
20    (7) Interest bearing bonds of the State of Illinois.
21    (8) Pooled interest bearing accounts managed by the
22Illinois Public Treasurer's Investment Pool in accordance with
23the Deposit of State Moneys Act, and interest bearing funds or
24pooled accounts of the Illinois Metropolitan Investment Funds,
25and interest bearing funds or pooled accounts managed,
26operated, and administered by banks, subsidiaries of banks, or

 

 

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1subsidiaries of bank holding companies in accordance with the
2laws of the State of Illinois.
3    (9) Interest bearing bonds or tax anticipation warrants of
4any county, township, or municipal corporation of the State of
5Illinois.
6    (10) Direct obligations of the State of Israel, subject to
7the conditions and limitations of item (5.1) of Section 1-113.
8    (11) Money market mutual funds managed by investment
9companies that are registered under the federal Investment
10Company Act of 1940 and the Illinois Securities Law of 1953 and
11are diversified, open-ended management investment companies;
12provided that the portfolio of the money market mutual fund is
13limited to the following:
14        (i) bonds, notes, certificates of indebtedness,
15    treasury bills, or other securities that are guaranteed by
16    the full faith and credit of the United States of America
17    as to principal and interest;
18        (ii) bonds, notes, debentures, or other similar
19    obligations of the United States of America or its
20    agencies; and
21        (iii) short term obligations of corporations organized
22    in the United States with assets exceeding $400,000,000,
23    provided that (A) the obligations mature no later than 180
24    days from the date of purchase, (B) at the time of
25    purchase, the obligations are rated by at least 2 standard
26    national rating services at one of their 3 highest

 

 

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1    classifications, and (C) the obligations held by the mutual
2    fund do not exceed 10% of the corporation's outstanding
3    obligations.
4    (12) General accounts of life insurance companies
5authorized to transact business in Illinois.
6    (13) Any combination of the following, not to exceed 10% of
7the pension fund's net assets:
8        (i) separate accounts that are managed by life
9    insurance companies authorized to transact business in
10    Illinois and are comprised of diversified portfolios
11    consisting of common or preferred stocks, bonds, or money
12    market instruments;
13        (ii) separate accounts that are managed by insurance
14    companies authorized to transact business in Illinois, and
15    are comprised of real estate or loans upon real estate
16    secured by first or second mortgages; and
17        (iii) mutual funds that meet the following
18    requirements:
19            (A) the mutual fund is managed by an investment
20        company as defined and registered under the federal
21        Investment Company Act of 1940 and registered under the
22        Illinois Securities Law of 1953;
23            (B) the mutual fund has been in operation for at
24        least 5 years;
25            (C) the mutual fund has total net assets of $250
26        million or more; and

 

 

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1            (D) the mutual fund is comprised of diversified
2        portfolios of common or preferred stocks, bonds, or
3        money market instruments.
4    (14) Corporate bonds managed through an investment advisor
5must meet all of the following requirements:
6        (1) The bonds must be rated as investment grade by one
7    of the 2 largest rating services at the time of purchase.
8        (2) If subsequently downgraded below investment grade,
9    the bonds must be liquidated from the portfolio within 90
10    days after being downgraded by the manager.
11(Source: P.A. 90-507, eff. 8-22-97; 91-887, eff. 7-6-00.)
 
12    (40 ILCS 5/1-113.4a new)
13    Sec. 1-113.4a. List of additional permitted investments
14for Article 3 and 4 pension funds with net assets of
15$10,000,000 or more.
16    (a) In addition to the items in Sections 1-113.2 and
171-113.3, a pension fund established under Article 3 or 4 that
18has net assets of at least $10,000,000 and has appointed an
19investment adviser, as defined under Sections 1-101.4 and
201-113.5, may, through that investment adviser, invest an
21additional portion of its assets in common and preferred stocks
22and mutual funds.
23    (b) The stocks must meet all of the following requirements:
24        (1) The common stocks must be listed on a national
25    securities exchange or board of trade (as defined in the

 

 

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1    Federal Securities Exchange Act of 1934 and set forth in
2    paragraph G of Section 3 of the Illinois Securities Law of
3    1953) or quoted in the National Association of Securities
4    Dealers Automated Quotation System National Market System.
5        (2) The securities must be of a corporation in
6    existence for at least 5 years.
7        (3) The market value of stock in any one corporation
8    may not exceed 5% of the cash and invested assets of the
9    pension fund, and the investments in the stock of any one
10    corporation may not exceed 5% of the total outstanding
11    stock of that corporation.
12        (4) The straight preferred stocks or convertible
13    preferred stocks must be issued or guaranteed by a
14    corporation whose common stock qualifies for investment by
15    the board.
16    (c) The mutual funds must meet the following requirements:
17        (1) The mutual fund must be managed by an investment
18    company registered under the Federal Investment Company
19    Act of 1940 and registered under the Illinois Securities
20    Law of 1953.
21        (2) The mutual fund must have been in operation for at
22    least 5 years.
23        (3) The mutual fund must have total net assets of
24    $250,000,000 or more.
25        (4) The mutual fund must be comprised of a diversified
26    portfolio of common or preferred stocks, bonds, or money

 

 

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1    market instruments.
2    (d) A pension fund's total investment in the items
3authorized under this Section and Section 1-113.3 shall not
4exceed 50% effective July 1, 2011 and 55% effective July 1,
52012 of the market value of the pension fund's net present
6assets stated in its most recent annual report on file with the
7Department of Insurance.
8    (e) A pension fund that invests funds under this Section
9shall electronically file with the Division any reports of its
10investment activities that the Division may require, at the
11time and in the format required by the Division.
 
12    (40 ILCS 5/1-165 new)
13    Sec. 1-165. Commission on Government Forecasting and
14Accountability study. The Commission on Government Forecasting
15and Accountability shall conduct a study on the feasibility of:
16        (1) the creation of an investment pool to supplement
17    and enhance the investment opportunities available to
18    boards of trustees of the pension funds organized under
19    Articles 3 and 4 of this Code; the study shall include an
20    analysis on any cost or cost savings associated with
21    establishing the system and transferring assets for
22    management under the investment pool; and
23        (2) enacting a contribution cost-share component
24    wherein employing municipalities and members of funds
25    established under Articles 3 and 4 of this Code each

 

 

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1    contribute 50% of the normal cost of the defined-benefit
2    plan.
3    The Commission shall issue a report on its findings on or
4before December 31, 2011.
 
5    (40 ILCS 5/3-111)  (from Ch. 108 1/2, par. 3-111)
6    Sec. 3-111. Pension.
7    (a) A police officer age 50 or more with 20 or more years
8of creditable service, who is not a participant in the
9self-managed plan under Section 3-109.3 and who is no longer in
10service as a police officer, shall receive a pension of 1/2 of
11the salary attached to the rank held by the officer on the
12police force for one year immediately prior to retirement or,
13beginning July 1, 1987 for persons terminating service on or
14after that date, the salary attached to the rank held on the
15last day of service or for one year prior to the last day,
16whichever is greater. The pension shall be increased by 2.5% of
17such salary for each additional year of service over 20 years
18of service through 30 years of service, to a maximum of 75% of
19such salary.
20    The changes made to this subsection (a) by this amendatory
21Act of the 91st General Assembly apply to all pensions that
22become payable under this subsection on or after January 1,
231999. All pensions payable under this subsection that began on
24or after January 1, 1999 and before the effective date of this
25amendatory Act shall be recalculated, and the amount of the

 

 

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1increase accruing for that period shall be payable to the
2pensioner in a lump sum.
3    (a-5) No pension in effect on or granted after June 30,
4l973 shall be less than $200 per month. Beginning July 1, 1987,
5the minimum retirement pension for a police officer having at
6least 20 years of creditable service shall be $400 per month,
7without regard to whether or not retirement occurred prior to
8that date. If the minimum pension established in Section
93-113.1 is greater than the minimum provided in this
10subsection, the Section 3-113.1 minimum controls.
11    (b) A police officer mandatorily retired from service due
12to age by operation of law, having at least 8 but less than 20
13years of creditable service, shall receive a pension equal to 2
141/2% of the salary attached to the rank he or she held on the
15police force for one year immediately prior to retirement or,
16beginning July 1, 1987 for persons terminating service on or
17after that date, the salary attached to the rank held on the
18last day of service or for one year prior to the last day,
19whichever is greater, for each year of creditable service.
20    A police officer who retires or is separated from service
21having at least 8 years but less than 20 years of creditable
22service, who is not mandatorily retired due to age by operation
23of law, and who does not apply for a refund of contributions at
24his or her last separation from police service, shall receive a
25pension upon attaining age 60 equal to 2.5% of the salary
26attached to the rank held by the police officer on the police

 

 

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1force for one year immediately prior to retirement or,
2beginning July 1, 1987 for persons terminating service on or
3after that date, the salary attached to the rank held on the
4last day of service or for one year prior to the last day,
5whichever is greater, for each year of creditable service.
6    (c) A police officer no longer in service who has at least
7one but less than 8 years of creditable service in a police
8pension fund but meets the requirements of this subsection (c)
9shall be eligible to receive a pension from that fund equal to
102.5% of the salary attached to the rank held on the last day of
11service under that fund or for one year prior to that last day,
12whichever is greater, for each year of creditable service in
13that fund. The pension shall begin no earlier than upon
14attainment of age 60 (or upon mandatory retirement from the
15fund by operation of law due to age, if that occurs before age
1660) and in no event before the effective date of this
17amendatory Act of 1997.
18    In order to be eligible for a pension under this subsection
19(c), the police officer must have at least 8 years of
20creditable service in a second police pension fund under this
21Article and be receiving a pension under subsection (a) or (b)
22of this Section from that second fund. The police officer need
23not be in service on or after the effective date of this
24amendatory Act of 1997.
25    (d) Notwithstanding any other provision of this Article,
26the provisions of this subsection (d) apply to a person who is

 

 

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1not a participant in the self-managed plan under Section
23-109.3 and who first becomes a police officer under this
3Article on or after January 1, 2011.
4    A police officer age 55 or more who has 10 or more years of
5service in that capacity shall be entitled at his option to
6receive a monthly pension for his service as a police officer
7computed by multiplying 2.5% for each year of such service by
8his or her final average salary.
9    The pension of a police officer who is retiring after
10attaining age 50 with 10 or more years of creditable service
11shall be reduced by one-half of 1% for each month that the
12police officer's age is under age 55.
13    The maximum pension under this subsection (d) shall be 75%
14of final average salary.
15    For the purposes of this subsection (d), "final average
16salary" means the average monthly salary obtained by dividing
17the total salary of the police officer during the 96
18consecutive months of service within the last 120 months of
19service in which the total salary was the highest by the number
20of months of service in that period.
21    Beginning on January 1, 2011, for all purposes under this
22Code (including without limitation the calculation of benefits
23and employee contributions), the annual salary based on the
24plan year of a member or participant to whom this Section
25applies shall not exceed $106,800; however, that amount shall
26annually thereafter be increased by the lesser of (i) 3% of

 

 

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1that amount, including all previous adjustments, or (ii)
2one-half the annual unadjusted percentage increase (but not
3less than zero) in the consumer price index-u for the 12 months
4ending with the September preceding each November 1, including
5all previous adjustments.
6(Source: P.A. 90-460, eff. 8-17-97; 91-939, eff. 2-1-01.)
 
7    (40 ILCS 5/3-111.1)  (from Ch. 108 1/2, par. 3-111.1)
8    Sec. 3-111.1. Increase in pension.
9    (a) Except as provided in subsection (e), the monthly
10pension of a police officer who retires after July 1, 1971, and
11prior to January 1, 1986, shall be increased, upon either the
12first of the month following the first anniversary of the date
13of retirement if the officer is 60 years of age or over at
14retirement date, or upon the first day of the month following
15attainment of age 60 if it occurs after the first anniversary
16of retirement, by 3% of the originally granted pension and by
17an additional 3% of the originally granted pension in January
18of each year thereafter.
19    (b) The monthly pension of a police officer who retired
20from service with 20 or more years of service, on or before
21July 1, 1971, shall be increased in January of the year
22following the year of attaining age 65 or in January of 1972,
23if then over age 65, by 3% of the originally granted pension
24for each year the police officer received pension payments. In
25each January thereafter, he or she shall receive an additional

 

 

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1increase of 3% of the original pension.
2    (c) The monthly pension of a police officer who retires on
3disability or is retired for disability shall be increased in
4January of the year following the year of attaining age 60, by
53% of the original grant of pension for each year he or she
6received pension payments. In each January thereafter, the
7police officer shall receive an additional increase of 3% of
8the original pension.
9    (d) The monthly pension of a police officer who retires
10after January 1, 1986, shall be increased, upon either the
11first of the month following the first anniversary of the date
12of retirement if the officer is 55 years of age or over, or
13upon the first day of the month following attainment of age 55
14if it occurs after the first anniversary of retirement, by 1/12
15of 3% of the originally granted pension for each full month
16that has elapsed since the pension began, and by an additional
173% of the originally granted pension in January of each year
18thereafter.
19    The changes made to this subsection (d) by this amendatory
20Act of the 91st General Assembly apply to all initial increases
21that become payable under this subsection on or after January
221, 1999. All initial increases that became payable under this
23subsection on or after January 1, 1999 and before the effective
24date of this amendatory Act shall be recalculated and the
25additional amount accruing for that period, if any, shall be
26payable to the pensioner in a lump sum.

 

 

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1    (e) Notwithstanding the provisions of subsection (a), upon
2the first day of the month following (1) the first anniversary
3of the date of retirement, or (2) the attainment of age 55, or
4(3) July 1, 1987, whichever occurs latest, the monthly pension
5of a police officer who retired on or after January 1, 1977 and
6on or before January 1, 1986, and did not receive an increase
7under subsection (a) before July 1, 1987, shall be increased by
83% of the originally granted monthly pension for each full year
9that has elapsed since the pension began, and by an additional
103% of the originally granted pension in each January
11thereafter. The increases provided under this subsection are in
12lieu of the increases provided in subsection (a).
13    (f) Notwithstanding the other provisions of this Section,
14beginning with increases granted on or after July 1, 1993, the
15second and all subsequent automatic annual increases granted
16under subsection (a), (b), (d), or (e) of this Section shall be
17calculated as 3% of the amount of pension payable at the time
18of the increase, including any increases previously granted
19under this Section, rather than 3% of the originally granted
20pension amount. Section 1-103.1 does not apply to this
21subsection (f).
22    (g) Notwithstanding any other provision of this Article,
23the monthly pension of a person who first becomes a police
24officer under this Article on or after January 1, 2011 shall be
25increased on the January 1 occurring either on or after the
26attainment of age 60 or the first anniversary of the pension

 

 

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1start date, whichever is later. Each annual increase shall be
2calculated at 3% or one-half the annual unadjusted percentage
3increase (but not less than zero) in the consumer price index-u
4for the 12 months ending with the September preceding each
5November 1, whichever is less, of the originally granted
6pension. If the annual unadjusted percentage change in the
7consumer price index-u for a 12-month period ending in
8September is zero or, when compared with the preceding period,
9decreases, then the pension shall not be increased.
10    For the purposes of this subsection (g), "consumer price
11index-u" means the index published by the Bureau of Labor
12Statistics of the United States Department of Labor that
13measures the average change in prices of goods and services
14purchased by all urban consumers, United States city average,
15all items, 1982-84 = 100. The new amount resulting from each
16annual adjustment shall be determined by the Public Pension
17Division of the Department of Insurance and made available to
18the boards of the pension funds.
19(Source: P.A. 91-939, eff. 2-1-01.)
 
20    (40 ILCS 5/3-112)  (from Ch. 108 1/2, par. 3-112)
21    Sec. 3-112. Pension to survivors.
22    (a) Upon the death of a police officer entitled to a
23pension under Section 3-111, the surviving spouse shall be
24entitled to the pension to which the police officer was then
25entitled. Upon the death of the surviving spouse, or upon the

 

 

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1remarriage of the surviving spouse if that remarriage
2terminates the surviving spouse's eligibility under Section
33-121, the police officer's unmarried children who are under
4age 18 or who are dependent because of physical or mental
5disability shall be entitled to equal shares of such pension.
6If there is no eligible surviving spouse and no eligible child,
7the dependent parent or parents of the officer shall be
8entitled to receive or share such pension until their death or
9marriage or remarriage after the death of the police officer.
10    Notwithstanding any other provision of this Article, for a
11person who first becomes a police officer under this Article on
12or after January 1, 2011, the pension to which the surviving
13spouse, children, or parents are entitled under this subsection
14(a) shall be in the amount of 66 2/3% of the police officer's
15earned pension at the date of death. Nothing in this subsection
16(a) shall act to diminish the survivor's benefits described in
17subsection (e) of this Section.
18    Notwithstanding any other provision of this Article, the
19monthly pension of a survivor of a person who first becomes a
20police officer under this Article on or after January 1, 2011
21shall be increased on the January 1 after attainment of age 60
22by the recipient of the survivor's pension and each January 1
23thereafter by 3% or one-half the annual unadjusted percentage
24increase (but not less than zero) in the consumer price index-u
25for the 12 months ending with the September preceding each
26November 1, whichever is less, of the originally granted

 

 

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1survivor's pension. If the annual unadjusted percentage change
2in the consumer price index-u for a 12-month period ending in
3September is zero or, when compared with the preceding period,
4decreases, then the survivor's pension shall not be increased.
5    For the purposes of this subsection (a), "consumer price
6index-u" means the index published by the Bureau of Labor
7Statistics of the United States Department of Labor that
8measures the average change in prices of goods and services
9purchased by all urban consumers, United States city average,
10all items, 1982-84 = 100. The new amount resulting from each
11annual adjustment shall be determined by the Public Pension
12Division of the Department of Insurance and made available to
13the boards of the pension funds.
14    (b) Upon the death of a police officer while in service,
15having at least 20 years of creditable service, or upon the
16death of a police officer who retired from service with at
17least 20 years of creditable service, whether death occurs
18before or after attainment of age 50, the pension earned by the
19police officer as of the date of death as provided in Section
203-111 shall be paid to the survivors in the sequence provided
21in subsection (a) of this Section.
22    (c) Upon the death of a police officer while in service,
23having at least 10 but less than 20 years of service, a pension
24of 1/2 of the salary attached to the rank or ranks held by the
25officer for one year immediately prior to death shall be
26payable to the survivors in the sequence provided in subsection

 

 

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1(a) of this Section. If death occurs as a result of the
2performance of duty, the 10 year requirement shall not apply
3and the pension to survivors shall be payable after any period
4of service.
5    (d) Beginning July 1, 1987, a minimum pension of $400 per
6month shall be paid to all surviving spouses, without regard to
7the fact that the death of the police officer occurred prior to
8that date. If the minimum pension established in Section
93-113.1 is greater than the minimum provided in this
10subsection, the Section 3-113.1 minimum controls.
11    (e) The pension of the surviving spouse of a police officer
12who dies (i) on or after January 1, 2001, (ii) without having
13begun to receive either a retirement pension payable under
14Section 3-111 or a disability pension payable under Section
153-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a result of
16sickness, accident, or injury incurred in or resulting from the
17performance of an act of duty shall not be less than 100% of
18the salary attached to the rank held by the deceased police
19officer on the last day of service, notwithstanding any
20provision in this Article to the contrary.
21(Source: P.A. 91-939, eff. 2-1-01.)
 
22    (40 ILCS 5/3-125)  (from Ch. 108 1/2, par. 3-125)
23    Sec. 3-125. Financing.
24    (a) The city council or the board of trustees of the
25municipality shall annually levy a tax upon all the taxable

 

 

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1property of the municipality at the rate on the dollar which
2will produce an amount which, when added to the deductions from
3the salaries or wages of police officers, and revenues
4available from other sources, will equal a sum sufficient to
5meet the annual requirements of the police pension fund. The
6annual requirements to be provided by such tax levy are equal
7to (1) the normal cost of the pension fund for the year
8involved, plus (2) an the amount sufficient to bring the total
9assets of the pension fund up to 90% of the total actuarial
10liabilities of the pension fund by the end of municipal fiscal
11year 2040, as annually updated and determined by an enrolled
12actuary employed by the Illinois Department of Insurance or by
13an enrolled actuary retained by the pension fund or the
14municipality. In making these determinations, the required
15minimum employer contribution shall be calculated each year as
16a level percentage of payroll over the years remaining up to
17and including fiscal year 2040 and shall be determined under
18the projected unit credit actuarial cost method necessary to
19amortize the fund's unfunded accrued liabilities as provided in
20Section 3-127. The tax shall be levied and collected in the
21same manner as the general taxes of the municipality, and in
22addition to all other taxes now or hereafter authorized to be
23levied upon all property within the municipality, and shall be
24in addition to the amount authorized to be levied for general
25purposes as provided by Section 8-3-1 of the Illinois Municipal
26Code, approved May 29, 1961, as amended. The tax shall be

 

 

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1forwarded directly to the treasurer of the board within 30
2business days after receipt by the county.
3    (b) For purposes of determining the required employer
4contribution to a pension fund, the value of the pension fund's
5assets shall be equal to the actuarial value of the pension
6fund's assets, which shall be calculated as follows:
7        (1) On March 30, 2011, the actuarial value of a pension
8    fund's assets shall be equal to the market value of the
9    assets as of that date.
10        (2) In determining the actuarial value of the System's
11    assets for fiscal years after March 30, 2011, any actuarial
12    gains or losses from investment return incurred in a fiscal
13    year shall be recognized in equal annual amounts over the
14    5-year period following that fiscal year.
15    (c) If a participating municipality fails to transmit to
16the fund contributions required of it under this Article for
17more than 90 days after the payment of those contributions is
18due, the fund may, after giving notice to the municipality,
19certify to the State Comptroller the amounts of the delinquent
20payments, and the Comptroller must, beginning in fiscal year
212016, deduct and deposit into the fund the certified amounts or
22a portion of those amounts from the following proportions of
23grants of State funds to the municipality:
24        (1) in fiscal year 2016, one-third of the total amount
25    of any grants of State funds to the municipality;
26        (2) in fiscal year 2017, two-thirds of the total amount

 

 

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1    of any grants of State funds to the municipality; and
2        (3) in fiscal year 2018 and each fiscal year
3    thereafter, the total amount of any grants of State funds
4    to the municipality.
5    The State Comptroller may not deduct from any grants of
6State funds to the municipality more than the amount of
7delinquent payments certified to the State Comptroller by the
8fund.
9    (d) The police pension fund shall consist of the following
10moneys which shall be set apart by the treasurer of the
11municipality:
12        (1) All moneys derived from the taxes levied hereunder;
13        (2) Contributions by police officers under Section
14    3-125.1;
15        (3) All moneys accumulated by the municipality under
16    any previous legislation establishing a fund for the
17    benefit of disabled or retired police officers;
18        (4) Donations, gifts or other transfers authorized by
19    this Article.
20    (e) The Commission on Government Forecasting and
21Accountability shall conduct a study of all funds established
22under this Article and shall report its findings to the General
23Assembly on or before January 1, 2013. To the fullest extent
24possible, the study shall include, but not be limited to, the
25following:
26        (1) fund balances;

 

 

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1        (2) historical employer contribution rates for each
2    fund;
3        (3) the actuarial formulas used as a basis for employer
4    contributions, including the actual assumed rate of return
5    for each year, for each fund;
6        (4) available contribution funding sources;
7        (5) the impact of any revenue limitations caused by
8    PTELL and employer home rule or non-home rule status; and
9        (6) existing statutory funding compliance procedures
10    and funding enforcement mechanisms for all municipal
11    pension funds.
12(Source: P.A. 95-530, eff. 8-28-07.)
 
13    (40 ILCS 5/4-109)  (from Ch. 108 1/2, par. 4-109)
14    Sec. 4-109. Pension.
15    (a) A firefighter age 50 or more with 20 or more years of
16creditable service, who is no longer in service as a
17firefighter, shall receive a monthly pension of 1/2 the monthly
18salary attached to the rank held by him or her in the fire
19service at the date of retirement.
20    The monthly pension shall be increased by 1/12 of 2.5% of
21such monthly salary for each additional month over 20 years of
22service through 30 years of service, to a maximum of 75% of
23such monthly salary.
24    The changes made to this subsection (a) by this amendatory
25Act of the 91st General Assembly apply to all pensions that

 

 

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1become payable under this subsection on or after January 1,
21999. All pensions payable under this subsection that began on
3or after January 1, 1999 and before the effective date of this
4amendatory Act shall be recalculated, and the amount of the
5increase accruing for that period shall be payable to the
6pensioner in a lump sum.
7    (b) A firefighter who retires or is separated from service
8having at least 10 but less than 20 years of creditable
9service, who is not entitled to receive a disability pension,
10and who did not apply for a refund of contributions at his or
11her last separation from service shall receive a monthly
12pension upon attainment of age 60 based on the monthly salary
13attached to his or her rank in the fire service on the date of
14retirement or separation from service according to the
15following schedule:
16    For 10 years of service, 15% of salary;
17    For 11 years of service, 17.6% of salary;
18    For 12 years of service, 20.4% of salary;
19    For 13 years of service, 23.4% of salary;
20    For 14 years of service, 26.6% of salary;
21    For 15 years of service, 30% of salary;
22    For 16 years of service, 33.6% of salary;
23    For 17 years of service, 37.4% of salary;
24    For 18 years of service, 41.4% of salary;
25    For 19 years of service, 45.6% of salary.
26    (c) Notwithstanding any other provision of this Article,

 

 

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1the provisions of this subsection (c) apply to a person who
2first becomes a firefighter under this Article on or after
3January 1, 2011.
4    A firefighter age 55 or more who has 10 or more years of
5service in that capacity shall be entitled at his option to
6receive a monthly pension for his service as a firefighter
7computed by multiplying 2.5% for each year of such service by
8his or her final average salary.
9    The pension of a firefighter who is retiring after
10attaining age 50 with 10 or more years of creditable service
11shall be reduced by one-half of 1% for each month that the
12firefighter's age is under age 55.
13    The maximum pension under this subsection (c) shall be 75%
14of final average salary.
15    For the purposes of this subsection (c), "final average
16salary" means the average monthly salary obtained by dividing
17the total salary of the firefighter during the 96 consecutive
18months of service within the last 120 months of service in
19which the total salary was the highest by the number of months
20of service in that period.
21    Beginning on January 1, 2011, for all purposes under this
22Code (including without limitation the calculation of benefits
23and employee contributions), the annual salary based on the
24plan year of a member or participant to whom this Section
25applies shall not exceed $106,800; however, that amount shall
26annually thereafter be increased by the lesser of (i) 3% of

 

 

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1that amount, including all previous adjustments, or (ii)
2one-half the annual unadjusted percentage increase (but not
3less than zero) in the consumer price index-u for the 12 months
4ending with the September preceding each November 1, including
5all previous adjustments.
6(Source: P.A. 91-466, eff. 8-6-99.)
 
7    (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
8    Sec. 4-109.1. Increase in pension.
9    (a) Except as provided in subsection (e), the monthly
10pension of a firefighter who retires after July 1, 1971 and
11prior to January 1, 1986, shall, upon either the first of the
12month following the first anniversary of the date of retirement
13if 60 years of age or over at retirement date, or upon the
14first day of the month following attainment of age 60 if it
15occurs after the first anniversary of retirement, be increased
16by 2% of the originally granted monthly pension and by an
17additional 2% in each January thereafter. Effective January
181976, the rate of the annual increase shall be 3% of the
19originally granted monthly pension.
20    (b) The monthly pension of a firefighter who retired from
21service with 20 or more years of service, on or before July 1,
221971, shall be increased, in January of the year following the
23year of attaining age 65 or in January 1972, if then over age
2465, by 2% of the originally granted monthly pension, for each
25year the firefighter received pension payments. In each January

 

 

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1thereafter, he or she shall receive an additional increase of
22% of the original monthly pension. Effective January 1976, the
3rate of the annual increase shall be 3%.
4    (c) The monthly pension of a firefighter who is receiving a
5disability pension under this Article shall be increased, in
6January of the year following the year the firefighter attains
7age 60, or in January 1974, if then over age 60, by 2% of the
8originally granted monthly pension for each year he or she
9received pension payments. In each January thereafter, the
10firefighter shall receive an additional increase of 2% of the
11original monthly pension. Effective January 1976, the rate of
12the annual increase shall be 3%.
13    (c-1) On January 1, 1998, every child's disability benefit
14payable on that date under Section 4-110 or 4-110.1 shall be
15increased by an amount equal to 1/12 of 3% of the amount of the
16benefit, multiplied by the number of months for which the
17benefit has been payable. On each January 1 thereafter, every
18child's disability benefit payable under Section 4-110 or
194-110.1 shall be increased by 3% of the amount of the benefit
20then being paid, including any previous increases received
21under this Article. These increases are not subject to any
22limitation on the maximum benefit amount included in Section
234-110 or 4-110.1.
24    (c-2) On July 1, 2004, every pension payable to or on
25behalf of a minor or disabled surviving child that is payable
26on that date under Section 4-114 shall be increased by an

 

 

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1amount equal to 1/12 of 3% of the amount of the pension,
2multiplied by the number of months for which the benefit has
3been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
4July 1, 2008, every pension payable to or on behalf of a minor
5or disabled surviving child that is payable under Section 4-114
6shall be increased by 3% of the amount of the pension then
7being paid, including any previous increases received under
8this Article. These increases are not subject to any limitation
9on the maximum benefit amount included in Section 4-114.
10    (d) The monthly pension of a firefighter who retires after
11January 1, 1986, shall, upon either the first of the month
12following the first anniversary of the date of retirement if 55
13years of age or over, or upon the first day of the month
14following attainment of age 55 if it occurs after the first
15anniversary of retirement, be increased by 1/12 of 3% of the
16originally granted monthly pension for each full month that has
17elapsed since the pension began, and by an additional 3% in
18each January thereafter.
19    The changes made to this subsection (d) by this amendatory
20Act of the 91st General Assembly apply to all initial increases
21that become payable under this subsection on or after January
221, 1999. All initial increases that became payable under this
23subsection on or after January 1, 1999 and before the effective
24date of this amendatory Act shall be recalculated and the
25additional amount accruing for that period, if any, shall be
26payable to the pensioner in a lump sum.

 

 

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1    (e) Notwithstanding the provisions of subsection (a), upon
2the first day of the month following (1) the first anniversary
3of the date of retirement, or (2) the attainment of age 55, or
4(3) July 1, 1987, whichever occurs latest, the monthly pension
5of a firefighter who retired on or after January 1, 1977 and on
6or before January 1, 1986 and did not receive an increase under
7subsection (a) before July 1, 1987, shall be increased by 3% of
8the originally granted monthly pension for each full year that
9has elapsed since the pension began, and by an additional 3% in
10each January thereafter. The increases provided under this
11subsection are in lieu of the increases provided in subsection
12(a).
13    (f) In July 2009, the monthly pension of a firefighter who
14retired before July 1, 1977 shall be recalculated and increased
15to reflect the amount that the firefighter would have received
16in July 2009 had the firefighter been receiving a 3% compounded
17increase for each year he or she received pension payments
18after January 1, 1986, plus any increases in pension received
19for each year prior to January 1, 1986. In each January
20thereafter, he or she shall receive an additional increase of
213% of the amount of the pension then being paid. The changes
22made to this Section by this amendatory Act of the 96th General
23Assembly apply without regard to whether the firefighter was in
24service on or after its effective date.
25    (g) Notwithstanding any other provision of this Article,
26the monthly pension of a person who first becomes a firefighter

 

 

SB3538 Enrolled- 29 -LRB096 18789 AMC 34174 b

1under this Article on or after January 1, 2011 shall be
2increased on the January 1 occurring either on or after the
3attainment of age 60 or the first anniversary of the pension
4start date, whichever is later. Each annual increase shall be
5calculated at 3% or one-half the annual unadjusted percentage
6increase (but not less than zero) in the consumer price index-u
7for the 12 months ending with the September preceding each
8November 1, whichever is less, of the originally granted
9pension. If the annual unadjusted percentage change in the
10consumer price index-u for a 12-month period ending in
11September is zero or, when compared with the preceding period,
12decreases, then the pension shall not be increased.
13    For the purposes of this subsection (g), "consumer price
14index-u" means the index published by the Bureau of Labor
15Statistics of the United States Department of Labor that
16measures the average change in prices of goods and services
17purchased by all urban consumers, United States city average,
18all items, 1982-84 = 100. The new amount resulting from each
19annual adjustment shall be determined by the Public Pension
20Division of the Department of Insurance and made available to
21the boards of the pension funds.
22(Source: P.A. 96-775, eff. 8-28-09.)
 
23    (40 ILCS 5/4-114)  (from Ch. 108 1/2, par. 4-114)
24    Sec. 4-114. Pension to survivors. If a firefighter who is
25not receiving a disability pension under Section 4-110 or

 

 

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14-110.1 dies (1) as a result of any illness or accident, or (2)
2from any cause while in receipt of a disability pension under
3this Article, or (3) during retirement after 20 years service,
4or (4) while vested for or in receipt of a pension payable
5under subsection (b) of Section 4-109, or (5) while a deferred
6pensioner, having made all required contributions, a pension
7shall be paid to his or her survivors, based on the monthly
8salary attached to the firefighter's rank on the last day of
9service in the fire department, as follows:
10        (a)(1) To the surviving spouse, a monthly pension of
11    40% of the monthly salary, and to the guardian of any minor
12    child or children including a child which has been
13    conceived but not yet born, 12% of such monthly salary for
14    each such child until attainment of age 18 or until the
15    child's marriage, whichever occurs first. Beginning July
16    1, 1993, the monthly pension to the surviving spouse shall
17    be 54% of the monthly salary for all persons receiving a
18    surviving spouse pension under this Article, regardless of
19    whether the deceased firefighter was in service on or after
20    the effective date of this amendatory Act of 1993.
21        (2) Beginning July 1, 2004, unless the amount provided
22    under paragraph (1) of this subsection (a) is greater, the
23    total monthly pension payable under this paragraph (a),
24    including any amount payable on account of children, to the
25    surviving spouse of a firefighter who died (i) while
26    receiving a retirement pension, (ii) while he or she was a

 

 

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1    deferred pensioner with at least 20 years of creditable
2    service, or (iii) while he or she was in active service
3    having at least 20 years of creditable service, regardless
4    of age, shall be no less than 100% of the monthly
5    retirement pension earned by the deceased firefighter at
6    the time of death, regardless of whether death occurs
7    before or after attainment of age 50, including any
8    increases under Section 4-109.1. This minimum applies to
9    all such surviving spouses who are eligible to receive a
10    surviving spouse pension, regardless of whether the
11    deceased firefighter was in service on or after the
12    effective date of this amendatory Act of the 93rd General
13    Assembly, and notwithstanding any limitation on maximum
14    pension under paragraph (d) or any other provision of this
15    Article.
16        (3) If the pension paid on and after July 1, 2004 to
17    the surviving spouse of a firefighter who died on or after
18    July 1, 2004 and before the effective date of this
19    amendatory Act of the 93rd General Assembly was less than
20    the minimum pension payable under paragraph (1) or (2) of
21    this subsection (a), the fund shall pay a lump sum equal to
22    the difference within 90 days after the effective date of
23    this amendatory Act of the 93rd General Assembly.
24        The pension to the surviving spouse shall terminate in
25    the event of the surviving spouse's remarriage prior to
26    July 1, 1993; remarriage on or after that date does not

 

 

SB3538 Enrolled- 32 -LRB096 18789 AMC 34174 b

1    affect the surviving spouse's pension, regardless of
2    whether the deceased firefighter was in service on or after
3    the effective date of this amendatory Act of 1993.
4        The surviving spouse's pension shall be subject to the
5    minimum established in Section 4-109.2.
6        (b) Upon the death of the surviving spouse leaving one
7    or more minor children, to the duly appointed guardian of
8    each such child, for support and maintenance of each such
9    child until the child reaches age 18 or marries, whichever
10    occurs first, a monthly pension of 20% of the monthly
11    salary.
12        (c) If a deceased firefighter leaves no surviving
13    spouse or unmarried minor children under age 18, but leaves
14    a dependent father or mother, to each dependent parent a
15    monthly pension of 18% of the monthly salary. To qualify
16    for the pension, a dependent parent must furnish
17    satisfactory proof that the deceased firefighter was at the
18    time of his or her death the sole supporter of the parent
19    or that the parent was the deceased's dependent for federal
20    income tax purposes.
21        (d) The total pension provided under paragraphs (a),
22    (b) and (c) of this Section shall not exceed 75% of the
23    monthly salary of the deceased firefighter (1) when paid to
24    the survivor of a firefighter who has attained 20 or more
25    years of service credit and who receives or is eligible to
26    receive a retirement pension under this Article, or (2)

 

 

SB3538 Enrolled- 33 -LRB096 18789 AMC 34174 b

1    when paid to the survivor of a firefighter who dies as a
2    result of illness or accident, or (3) when paid to the
3    survivor of a firefighter who dies from any cause while in
4    receipt of a disability pension under this Article, or (4)
5    when paid to the survivor of a deferred pensioner. For all
6    other survivors of deceased firefighters, the total
7    pension provided under paragraphs (a), (b) and (c) of this
8    Section shall not exceed 50% of the retirement annuity the
9    firefighter would have received on the date of death.
10        The maximum pension limitations in this paragraph (d)
11    do not control over any contrary provision of this Article
12    explicitly establishing a minimum amount of pension or
13    granting a one-time or annual increase in pension.
14        (e) If a firefighter leaves no eligible survivors under
15    paragraphs (a), (b) and (c), the board shall refund to the
16    firefighter's estate the amount of his or her accumulated
17    contributions, less the amount of pension payments, if any,
18    made to the firefighter while living.
19        (f) (Blank).
20        (g) If a judgment of dissolution of marriage between a
21    firefighter and spouse is judicially set aside subsequent
22    to the firefighter's death, the surviving spouse is
23    eligible for the pension provided in paragraph (a) only if
24    the judicial proceedings are filed within 2 years after the
25    date of the dissolution of marriage and within one year
26    after the firefighter's death and the board is made a party

 

 

SB3538 Enrolled- 34 -LRB096 18789 AMC 34174 b

1    to the proceedings. In such case the pension shall be
2    payable only from the date of the court's order setting
3    aside the judgment of dissolution of marriage.
4        (h) Benefits payable on account of a child under this
5    Section shall not be reduced or terminated by reason of the
6    child's attainment of age 18 if he or she is then dependent
7    by reason of a physical or mental disability but shall
8    continue to be paid as long as such dependency continues.
9    Individuals over the age of 18 and adjudged as a disabled
10    person pursuant to Article XIa of the Probate Act of 1975,
11    except for persons receiving benefits under Article III of
12    the Illinois Public Aid Code, shall be eligible to receive
13    benefits under this Act.
14        (i) Beginning January 1, 2000, the pension of the
15    surviving spouse of a firefighter who dies on or after
16    January 1, 1994 as a result of sickness, accident, or
17    injury incurred in or resulting from the performance of an
18    act of duty or from the cumulative effects of acts of duty
19    shall not be less than 100% of the salary attached to the
20    rank held by the deceased firefighter on the last day of
21    service, notwithstanding subsection (d) or any other
22    provision of this Article.
23        (j) Beginning July 1, 2004, the pension of the
24    surviving spouse of a firefighter who dies on or after
25    January 1, 1988 as a result of sickness, accident, or
26    injury incurred in or resulting from the performance of an

 

 

SB3538 Enrolled- 35 -LRB096 18789 AMC 34174 b

1    act of duty or from the cumulative effects of acts of duty
2    shall not be less than 100% of the salary attached to the
3    rank held by the deceased firefighter on the last day of
4    service, notwithstanding subsection (d) or any other
5    provision of this Article.
6    Notwithstanding any other provision of this Article, if a
7person who first becomes a firefighter under this Article on or
8after January 1, 2011 and who is not receiving a disability
9pension under Section 4-110 or 4-110.1 dies (1) as a result of
10any illness or accident, (2) from any cause while in receipt of
11a disability pension under this Article, (3) during retirement
12after 20 years service, (4) while vested for or in receipt of a
13pension payable under subsection (b) of Section 4-109, or (5)
14while a deferred pensioner, having made all required
15contributions, then a pension shall be paid to his or her
16survivors in the amount of 66 2/3% of the firefighter's earned
17pension at the date of death. Nothing in this Section shall act
18to diminish the survivor's benefits described in subsection (j)
19of this Section.
20    Notwithstanding any other provision of this Article, the
21monthly pension of a survivor of a person who first becomes a
22firefighter under this Article on or after January 1, 2011
23shall be increased on the January 1 after attainment of age 60
24by the recipient of the survivor's pension and each January 1
25thereafter by 3% or one-half the annual unadjusted percentage
26increase in the consumer price index-u for the 12 months ending

 

 

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1with the September preceding each November 1, whichever is
2less, of the originally granted survivor's pension. If the
3annual unadjusted percentage change in the consumer price
4index-u for a 12-month period ending in September is zero or,
5when compared with the preceding period, decreases, then the
6survivor's pension shall not be increased.
7    For the purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the average
10change in prices of goods and services purchased by all urban
11consumers, United States city average, all items, 1982-84 =
12100. The new amount resulting from each annual adjustment shall
13be determined by the Public Pension Division of the Department
14of Insurance and made available to the boards of the pension
15funds.
16(Source: P.A. 95-279, eff. 1-1-08.)
 
17    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
18    Sec. 4-118. Financing.
19    (a) The city council or the board of trustees of the
20municipality shall annually levy a tax upon all the taxable
21property of the municipality at the rate on the dollar which
22will produce an amount which, when added to the deductions from
23the salaries or wages of firefighters and revenues available
24from other sources, will equal a sum sufficient to meet the
25annual actuarial requirements of the pension fund, as

 

 

SB3538 Enrolled- 37 -LRB096 18789 AMC 34174 b

1determined by an enrolled actuary employed by the Illinois
2Department of Insurance or by an enrolled actuary retained by
3the pension fund or municipality. For the purposes of this
4Section, the annual actuarial requirements of the pension fund
5are equal to (1) the normal cost of the pension fund, or 17.5%
6of the salaries and wages to be paid to firefighters for the
7year involved, whichever is greater, plus (2) an the annual
8amount sufficient to bring the total assets of the pension fund
9up to 90% of the total actuarial liabilities of the pension
10fund by the end of municipal fiscal year 2040, as annually
11updated and determined by an enrolled actuary employed by the
12Illinois Department of Insurance or by an enrolled actuary
13retained by the pension fund or the municipality. In making
14these determinations, the required minimum employer
15contribution shall be calculated each year as a level
16percentage of payroll over the years remaining up to and
17including fiscal year 2040 and shall be determined under the
18projected unit credit actuarial cost method necessary to
19amortize the fund's unfunded accrued liabilities over a period
20of 40 years from July 1, 1993, as annually updated and
21determined by an enrolled actuary employed by the Illinois
22Department of Insurance or by an enrolled actuary retained by
23the pension fund or the municipality. The amount to be applied
24towards the amortization of the unfunded accrued liability in
25any year shall not be less than the annual amount required to
26amortize the unfunded accrued liability, including interest,

 

 

SB3538 Enrolled- 38 -LRB096 18789 AMC 34174 b

1as a level percentage of payroll over the number of years
2remaining in the 40 year amortization period.
3    (a-5) For purposes of determining the required employer
4contribution to a pension fund, the value of the pension fund's
5assets shall be equal to the actuarial value of the pension
6fund's assets, which shall be calculated as follows:
7        (1) On March 30, 2011, the actuarial value of a pension
8    fund's assets shall be equal to the market value of the
9    assets as of that date.
10        (2) In determining the actuarial value of the pension
11    fund's assets for fiscal years after March 30, 2011, any
12    actuarial gains or losses from investment return incurred
13    in a fiscal year shall be recognized in equal annual
14    amounts over the 5-year period following that fiscal year.
15    (b) The tax shall be levied and collected in the same
16manner as the general taxes of the municipality, and shall be
17in addition to all other taxes now or hereafter authorized to
18be levied upon all property within the municipality, and in
19addition to the amount authorized to be levied for general
20purposes, under Section 8-3-1 of the Illinois Municipal Code or
21under Section 14 of the Fire Protection District Act. The tax
22shall be forwarded directly to the treasurer of the board
23within 30 business days of receipt by the county (or, in the
24case of amounts added to the tax levy under subsection (f),
25used by the municipality to pay the employer contributions
26required under subsection (b-1) of Section 15-155 of this

 

 

SB3538 Enrolled- 39 -LRB096 18789 AMC 34174 b

1Code).
2    (b-5) If a participating municipality fails to transmit to
3the fund contributions required of it under this Article for
4more than 90 days after the payment of those contributions is
5due, the fund may, after giving notice to the municipality,
6certify to the State Comptroller the amounts of the delinquent
7payments, and the Comptroller must, beginning in fiscal year
82016, deduct and deposit into the fund the certified amounts or
9a portion of those amounts from the following proportions of
10grants of State funds to the municipality:
11        (1) in fiscal year 2016, one-third of the total amount
12    of any grants of State funds to the municipality;
13        (2) in fiscal year 2017, two-thirds of the total amount
14    of any grants of State funds to the municipality; and
15        (3) in fiscal year 2018 and each fiscal year
16    thereafter, the total amount of any grants of State funds
17    to the municipality.
18    The State Comptroller may not deduct from any grants of
19State funds to the municipality more than the amount of
20delinquent payments certified to the State Comptroller by the
21fund.
22    (c) The board shall make available to the membership and
23the general public for inspection and copying at reasonable
24times the most recent Actuarial Valuation Balance Sheet and Tax
25Levy Requirement issued to the fund by the Department of
26Insurance.

 

 

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1    (d) The firefighters' pension fund shall consist of the
2following moneys which shall be set apart by the treasurer of
3the municipality: (1) all moneys derived from the taxes levied
4hereunder; (2) contributions by firefighters as provided under
5Section 4-118.1; (3) all rewards in money, fees, gifts, and
6emoluments that may be paid or given for or on account of
7extraordinary service by the fire department or any member
8thereof, except when allowed to be retained by competitive
9awards; and (4) any money, real estate or personal property
10received by the board.
11    (e) For the purposes of this Section, "enrolled actuary"
12means an actuary: (1) who is a member of the Society of
13Actuaries or the American Academy of Actuaries; and (2) who is
14enrolled under Subtitle C of Title III of the Employee
15Retirement Income Security Act of 1974, or who has been engaged
16in providing actuarial services to one or more public
17retirement systems for a period of at least 3 years as of July
181, 1983.
19    (f) The corporate authorities of a municipality that
20employs a person who is described in subdivision (d) of Section
214-106 may add to the tax levy otherwise provided for in this
22Section an amount equal to the projected cost of the employer
23contributions required to be paid by the municipality to the
24State Universities Retirement System under subsection (b-1) of
25Section 15-155 of this Code.
26    (g) The Commission on Government Forecasting and

 

 

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1Accountability shall conduct a study of all funds established
2under this Article and shall report its findings to the General
3Assembly on or before January 1, 2013. To the fullest extent
4possible, the study shall include, but not be limited to, the
5following:
6        (1) fund balances;
7        (2) historical employer contribution rates for each
8    fund;
9        (3) the actuarial formulas used as a basis for employer
10    contributions, including the actual assumed rate of return
11    for each year, for each fund;
12        (4) available contribution funding sources;
13        (5) the impact of any revenue limitations caused by
14    PTELL and employer home rule or non-home rule status; and
15        (6) existing statutory funding compliance procedures
16    and funding enforcement mechanisms for all municipal
17    pension funds.
18(Source: P.A. 94-859, eff. 6-15-06.)
 
19    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
20    Sec. 5-167.1. Automatic increase in annuity; retirement
21from service after September 1, 1967.
22    (a) A policeman who retires from service after September 1,
231967 with at least 20 years of service credit shall, upon
24either the first of the month following the first anniversary
25of his date of retirement if he is age 60 (age 55 if born before

 

 

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1January 1, 1955) or over on that anniversary date, or upon the
2first of the month following his attainment of age 60 (age 55
3if born before January 1, 1955) if it occurs after the first
4anniversary of his retirement date, have his then fixed and
5payable monthly annuity increased by 1 1/2% and such first
6fixed annuity as granted at retirement increased by an
7additional 1 1/2% in January of each year thereafter up to a
8maximum increase of 30%. Beginning January 1, 1983 for
9policemen born before January 1, 1930, and beginning January 1,
101988 for policemen born on or after January 1, 1930 but before
11January 1, 1940, and beginning January 1, 1996 for policemen
12born on or after January 1, 1940 but before January 1, 1945,
13and beginning January 1, 2000 for policemen born on or after
14January 1, 1945 but before January 1, 1950, and beginning
15January 1, 2005 for policemen born on or after January 1, 1950
16but before January 1, 1955, such increases shall be 3% and such
17policemen shall not be subject to the 30% maximum increase.
18    Any policeman born before January 1, 1945 who qualifies for
19a minimum annuity and retires after September 1, 1967 but has
20not received the initial increase under this subsection before
21January 1, 1996 is entitled to receive the initial increase
22under this subsection on (1) January 1, 1996, (2) the first
23anniversary of the date of retirement, or (3) attainment of age
2455, whichever occurs last. The changes to this Section made by
25Public Act 89-12 apply beginning January 1, 1996 and without
26regard to whether the policeman or annuitant terminated service

 

 

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1before the effective date of that Act.
2    Any policeman born before January 1, 1950 who qualifies for
3a minimum annuity and retires after September 1, 1967 but has
4not received the initial increase under this subsection before
5January 1, 2000 is entitled to receive the initial increase
6under this subsection on (1) January 1, 2000, (2) the first
7anniversary of the date of retirement, or (3) attainment of age
855, whichever occurs last. The changes to this Section made by
9this amendatory Act of the 92nd General Assembly apply without
10regard to whether the policeman or annuitant terminated service
11before the effective date of this amendatory Act.
12    Any policeman born before January 1, 1955 who qualifies for
13a minimum annuity and retires after September 1, 1967 but has
14not received the initial increase under this subsection before
15January 1, 2005 is entitled to receive the initial increase
16under this subsection on (1) January 1, 2005, (2) the first
17anniversary of the date of retirement, or (3) attainment of age
1855, whichever occurs last. The changes to this Section made by
19this amendatory Act of the 94th General Assembly apply without
20regard to whether the policeman or annuitant terminated service
21before the effective date of this amendatory Act.
22    (b) Subsection (a) of this Section is not applicable to an
23employee receiving a term annuity.
24    (c) To help defray the cost of such increases in annuity,
25there shall be deducted, beginning September 1, 1967, from each
26payment of salary to a policeman, 1/2 of 1% of each salary

 

 

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1payment concurrently with and in addition to the salary
2deductions otherwise made for annuity purposes.
3    The city, in addition to the contributions otherwise made
4by it for annuity purposes under other provisions of this
5Article, shall make matching contributions concurrently with
6such salary deductions.
7    Each such 1/2 of 1% deduction from salary and each such
8contribution by the city of 1/2 of 1% of salary shall be
9credited to the Automatic Increase Reserve, to be used to
10defray the cost of the 1 1/2% annuity increase provided by this
11Section. Any balance in such reserve as of the beginning of
12each calendar year shall be credited with interest at the rate
13of 3% per annum.
14    Such deductions from salary and city contributions shall
15continue while the policeman is in service.
16    The salary deductions provided in this Section are not
17subject to refund, except to the policeman himself, in any case
18in which a policeman withdraws prior to qualification for
19minimum annuity and applies for refund or applies for annuity,
20and also where a term annuity becomes payable. In such cases,
21the total of such salary deductions shall be refunded to the
22policeman, without interest, and charged to the Automatic
23Increase Reserve.
24    (d) Notwithstanding any other provision of this Article,
25for a person who first becomes a policeman under this Article
26on or after January 1, 2011, the annuity to which the survivor

 

 

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1is entitled under this subsection (d) shall be in the amount of
266 2/3% of the policeman's earned annuity at the date of death.
3Nothing in this subsection (d) shall act to diminish the
4survivor's benefits described in this Section.
5    Notwithstanding any other provision of this Article, the
6monthly annuity of a survivor of a person who first becomes a
7policeman under this Article on or after January 1, 2011 shall
8be increased on the January 1 after attainment of age 60 by the
9recipient of the survivor's annuity and each January 1
10thereafter by 3% or one-half the annual unadjusted percentage
11increase (but not less than zero) in the consumer price index-u
12for the 12 months ending with the September preceding each
13November 1, whichever is less, of the originally granted
14annuity. If the annual unadjusted percentage change in the
15consumer price index-u for a 12-month period ending in
16September is zero or, when compared with the preceding period,
17decreases, then the annuity shall not be increased.
18    For the purposes of this subsection (d), "consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the boards of the pension funds.

 

 

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1(Source: P.A. 94-719, eff. 1-6-06.)
 
2    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
3    Sec. 5-168. Financing.
4    (a) Except as expressly provided in this Section, the city
5shall levy a tax annually upon all taxable property therein for
6the purpose of providing revenue for the fund.
7    The tax shall be at a rate that will produce a sum which,
8when added to the amounts deducted from the policemen's
9salaries and the amounts deposited in accordance with
10subsection (g), is sufficient for the purposes of the fund.
11    For the years 1968 and 1969, the city council shall levy a
12tax annually at a rate on the dollar of the assessed valuation
13of all taxable property that will produce, when extended, not
14to exceed $9,700,000. Beginning with the year 1970 and through
152014, each year thereafter the city council shall levy a tax
16annually at a rate on the dollar of the assessed valuation of
17all taxable property that will produce when extended an amount
18not to exceed the total amount of contributions by the
19policemen to the Fund made in the calendar year 2 years before
20the year for which the applicable annual tax is levied,
21multiplied by 1.40 for the tax levy year 1970; by 1.50 for the
22year 1971; by 1.65 for 1972; by 1.85 for 1973; by 1.90 for
231974; by 1.97 for 1975 through 1981; by 2.00 for 1982 and for
24each year through 2014 thereafter. Beginning in 2015, the city
25council shall levy a tax annually at a rate on the dollar of

 

 

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1the assessed valuation of all taxable property that will
2produce when extended an annual amount that is equal to (1) the
3normal cost to the Fund, plus (2) an annual amount sufficient
4to bring the total assets of the Fund up to 90% of the total
5actuarial liabilities of the Fund by the end of fiscal year
62040, as annually updated and determined by an enrolled actuary
7employed by the Illinois Department of Insurance or by an
8enrolled actuary retained by the Fund or the city. In making
9these determinations, the required minimum employer
10contribution shall be calculated each year as a level
11percentage of payroll over the years remaining up to and
12including fiscal year 2040 and shall be determined under the
13projected unit credit actuarial cost method. For the purposes
14of this subsection (a), contributions by the policeman to the
15Fund shall not include payments made by a policeman to
16establish credit under Section 5-214.2 of this Code.
17    (a-5) For purposes of determining the required employer
18contribution to the Fund, the value of the Fund's assets shall
19be equal to the actuarial value of the Fund's assets, which
20shall be calculated as follows:
21        (1) On March 30, 2011, the actuarial value of the
22    Fund's assets shall be equal to the market value of the
23    assets as of that date.
24        (2) In determining the actuarial value of the Fund's
25    assets for fiscal years after March 30, 2011, any actuarial
26    gains or losses from investment return incurred in a fiscal

 

 

SB3538 Enrolled- 48 -LRB096 18789 AMC 34174 b

1    year shall be recognized in equal annual amounts over the
2    5-year period following that fiscal year.
3    (a-7) If the city fails to transmit to the Fund
4contributions required of it under this Article for more than
590 days after the payment of those contributions is due, the
6Fund may, after giving notice to the city, certify to the State
7Comptroller the amounts of the delinquent payments, and the
8Comptroller must, beginning in fiscal year 2016, deduct and
9deposit into the Fund the certified amounts or a portion of
10those amounts from the following proportions of grants of State
11funds to the city:
12        (1) in fiscal year 2016, one-third of the total amount
13    of any grants of State funds to the city;
14        (2) in fiscal year 2017, two-thirds of the total amount
15    of any grants of State funds to the city; and
16        (3) in fiscal year 2018 and each fiscal year
17    thereafter, the total amount of any grants of State funds
18    to the city.
19    The State Comptroller may not deduct from any grants of
20State funds to the city more than the amount of delinquent
21payments certified to the State Comptroller by the Fund.
22    (b) The tax shall be levied and collected in like manner
23with the general taxes of the city, and is in addition to all
24other taxes which the city is now or may hereafter be
25authorized to levy upon all taxable property therein, and is
26exclusive of and in addition to the amount of tax the city is

 

 

SB3538 Enrolled- 49 -LRB096 18789 AMC 34174 b

1now or may hereafter be authorized to levy for general purposes
2under any law which may limit the amount of tax which the city
3may levy for general purposes. The county clerk of the county
4in which the city is located, in reducing tax levies under
5Section 8-3-1 of the Illinois Municipal Code, shall not
6consider the tax herein authorized as a part of the general tax
7levy for city purposes, and shall not include the tax in any
8limitation of the percent of the assessed valuation upon which
9taxes are required to be extended for the city.
10    (c) On or before January 10 of each year, the board shall
11notify the city council of the requirement that the tax herein
12authorized be levied by the city council for that current year.
13The board shall compute the amounts necessary for the purposes
14of this fund to be credited to the reserves established and
15maintained within the fund; shall make an annual determination
16of the amount of the required city contributions; and shall
17certify the results thereof to the city council.
18    As soon as any revenue derived from the tax is collected it
19shall be paid to the city treasurer of the city and shall be
20held by him for the benefit of the fund in accordance with this
21Article.
22    (d) If the funds available are insufficient during any year
23to meet the requirements of this Article, the city may issue
24tax anticipation warrants against the tax levy for the current
25fiscal year.
26    (e) The various sums, including interest, to be contributed

 

 

SB3538 Enrolled- 50 -LRB096 18789 AMC 34174 b

1by the city, shall be taken from the revenue derived from such
2tax or otherwise as expressly provided in this Section. Any
3moneys of the city derived from any source other than the tax
4herein authorized shall not be used for any purpose of the fund
5nor the cost of administration thereof, unless applied to make
6the deposit expressly authorized in this Section or the
7additional city contributions required under subsection (h).
8    (f) If it is not possible or practicable for the city to
9make its contributions at the time that salary deductions are
10made, the city shall make such contributions as soon as
11possible thereafter, with interest thereon to the time it is
12made.
13    (g) In lieu of levying all or a portion of the tax required
14under this Section in any year, the city may deposit with the
15city treasurer no later than March 1 of that year for the
16benefit of the fund, to be held in accordance with this
17Article, an amount that, together with the taxes levied under
18this Section for that year, is not less than the amount of the
19city contributions for that year as certified by the board to
20the city council. The deposit may be derived from any source
21legally available for that purpose, including, but not limited
22to, the proceeds of city borrowings. The making of a deposit
23shall satisfy fully the requirements of this Section for that
24year to the extent of the amounts so deposited. Amounts
25deposited under this subsection may be used by the fund for any
26of the purposes for which the proceeds of the tax levied under

 

 

SB3538 Enrolled- 51 -LRB096 18789 AMC 34174 b

1this Section may be used, including the payment of any amount
2that is otherwise required by this Article to be paid from the
3proceeds of that tax.
4    (h) In addition to the contributions required under the
5other provisions of this Article, by November 1 of the
6following specified years, the city shall deposit with the city
7treasurer for the benefit of the fund, to be held and used in
8accordance with this Article, the following specified amounts:
9$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
10$5,040,000 in 2002; and $4,620,000 in 2003.
11    The additional city contributions required under this
12subsection are intended to decrease the unfunded liability of
13the fund and shall not decrease the amount of the city
14contributions required under the other provisions of this
15Article. The additional city contributions made under this
16subsection may be used by the fund for any of its lawful
17purposes.
18(Source: P.A. 95-1036, eff. 2-17-09.)
 
19    (40 ILCS 5/5-238 new)
20    Sec. 5-238. Provisions applicable to new hires.
21    (a) Notwithstanding any other provision of this Article,
22the provisions of this Section apply to a person who first
23becomes a policeman under this Article on or after January 1,
242011.
25    (b) A policeman age 55 or more who has 10 or more years of

 

 

SB3538 Enrolled- 52 -LRB096 18789 AMC 34174 b

1service in that capacity shall be entitled at his option to
2receive a monthly retirement annuity for his service as a
3police officer computed by multiplying 2.5% for each year of
4such service by his or her final average salary.
5    The retirement annuity of a policeman who is retiring after
6attaining age 50 with 10 or more years of creditable service
7shall be reduced by one-half of 1% for each month that the
8police officer's age is under age 55.
9    The maximum retirement annuity under this subsection (b)
10shall be 75% of final average salary.
11    For the purposes of this subsection (b), "final average
12salary" means the average monthly salary obtained by dividing
13the total salary of the policeman during the 96 consecutive
14months of service within the last 120 months of service in
15which the total salary was the highest by the number of months
16of service in that period.
17    Beginning on January 1, 2011, for all purposes under this
18Code (including without limitation the calculation of benefits
19and employee contributions), the annual salary based on the
20plan year of a member or participant to whom this Section
21applies shall not exceed $106,800; however, that amount shall
22annually thereafter be increased by the lesser of (i) 3% of
23that amount, including all previous adjustments, or (ii)
24one-half the annual unadjusted percentage increase (but not
25less than zero) in the consumer price index-u for the 12 months
26ending with the September preceding each November 1, including

 

 

SB3538 Enrolled- 53 -LRB096 18789 AMC 34174 b

1all previous adjustments.
2    (c) Notwithstanding any other provision of this Article,
3for a person who first becomes a policeman under this Article
4on or after January 1, 2011, the annuity to which the surviving
5spouse, children, or parents are entitled under this subsection
6(c) shall be in the amount of 66 2/3% of the policeman's earned
7annuity at the date of death.
8    Notwithstanding any other provision of this Article, the
9monthly annuity of a survivor of a person who first becomes a
10policeman under this Article on or after January 1, 2011 shall
11be increased on the January 1 after attainment of age 60 by the
12recipient of the survivor's annuity and each January 1
13thereafter by 3% or one-half the annual unadjusted percentage
14increase (but not less than zero) in the consumer price index-u
15for the 12 months ending with the September preceding each
16November 1, whichever is less, of the originally granted
17survivor's annuity. If the unadjusted percentage change in the
18consumer price index-u for a 12-month period ending in
19September is zero or, when compared with the preceding period,
20decreases, then the annuity shall not be increased.
21    For the purposes of this Section, "consumer price index-u"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the average
24change in prices of goods and services purchased by all urban
25consumers, United States city average, all items, 1982-84 =
26100. The new amount resulting from each annual adjustment shall

 

 

SB3538 Enrolled- 54 -LRB096 18789 AMC 34174 b

1be determined by the Public Pension Division of the Department
2of Insurance and made available to the boards of the pension
3funds.
 
4    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
5    Sec. 6-164. Automatic annual increase; retirement after
6September 1, 1959.
7    (a) A fireman qualifying for a minimum annuity who retires
8from service after September 1, 1959 shall, upon either the
9first of the month following the first anniversary of his date
10of retirement if he is age 60 (age 55 if born before January 1,
111955) or over on that anniversary date, or upon the first of
12the month following his attainment of age 60 (age 55 if born
13before January 1, 1955) if that occurs after the first
14anniversary of his retirement date, have his then fixed and
15payable monthly annuity increased by 1 1/2%, and such first
16fixed annuity as granted at retirement increased by an
17additional 1 1/2% in January of each year thereafter up to a
18maximum increase of 30%. Beginning July 1, 1982 for firemen
19born before January 1, 1930, and beginning January 1, 1990 for
20firemen born after December 31, 1929 and before January 1,
211940, and beginning January 1, 1996 for firemen born after
22December 31, 1939 but before January 1, 1945, and beginning
23January 1, 2004, for firemen born after December 31, 1944 but
24before January 1, 1955, such increases shall be 3% and such
25firemen shall not be subject to the 30% maximum increase.

 

 

SB3538 Enrolled- 55 -LRB096 18789 AMC 34174 b

1    Any fireman born before January 1, 1945 who qualifies for a
2minimum annuity and retires after September 1, 1967 but has not
3received the initial increase under this subsection before
4January 1, 1996 is entitled to receive the initial increase
5under this subsection on (1) January 1, 1996, (2) the first
6anniversary of the date of retirement, or (3) attainment of age
755, whichever occurs last. The changes to this Section made by
8this amendatory Act of 1995 apply beginning January 1, 1996 and
9apply without regard to whether the fireman or annuitant
10terminated service before the effective date of this amendatory
11Act of 1995.
12    Any fireman born before January 1, 1955 who qualifies for a
13minimum annuity and retires after September 1, 1967 but has not
14received the initial increase under this subsection before
15January 1, 2004 is entitled to receive the initial increase
16under this subsection on (1) January 1, 2004, (2) the first
17anniversary of the date of retirement, or (3) attainment of age
1855, whichever occurs last. The changes to this Section made by
19this amendatory Act of the 93rd General Assembly apply without
20regard to whether the fireman or annuitant terminated service
21before the effective date of this amendatory Act.
22    (b) Subsection (a) of this Section is not applicable to an
23employee receiving a term annuity.
24    (c) To help defray the cost of such increases in annuity,
25there shall be deducted, beginning September 1, 1959, from each
26payment of salary to a fireman, 1/8 of 1% of each such salary

 

 

SB3538 Enrolled- 56 -LRB096 18789 AMC 34174 b

1payment and an additional 1/8 of 1% beginning on September 1,
21961, and September 1, 1963, respectively, concurrently with
3and in addition to the salary deductions otherwise made for
4annuity purposes.
5    Each such additional 1/8 of 1% deduction from salary which
6shall, on September 1, 1963, result in a total increase of 3/8
7of 1% of salary, shall be credited to the Automatic Increase
8Reserve, to be used, together with city contributions as
9provided in this Article, to defray the cost of the 1 1/2%
10annuity increments herein specified. Any balance in such
11reserve as of the beginning of each calendar year shall be
12credited with interest at the rate of 3% per annum.
13    The salary deductions provided in this Section are not
14subject to refund, except to the fireman himself, in any case
15in which a fireman withdraws prior to qualification for minimum
16annuity and applies for refund, or applies for annuity, and
17also where a term annuity becomes payable. In such cases, the
18total of such salary deductions shall be refunded to the
19fireman, without interest, and charged to the aforementioned
20reserve.
21    (d) Notwithstanding any other provision of this Article,
22the monthly annuity of a person who first becomes a fireman
23under this Article on or after January 1, 2011 shall be
24increased on the January 1 occurring either on or after the
25attainment of age 60 or the first anniversary of the annuity
26start date, whichever is later. Each annual increase shall be

 

 

SB3538 Enrolled- 57 -LRB096 18789 AMC 34174 b

1calculated at 3% or one-half the annual unadjusted percentage
2increase (but not less than zero) in the consumer price index-u
3for the 12 months ending with the September preceding each
4November 1, whichever is less, of the originally granted
5retirement annuity. If the annual unadjusted percentage change
6in the consumer price index-u for a 12-month period ending in
7September is zero or, when compared with the preceding period,
8decreases, then the annuity shall not be increased.
9    For the purposes of this subsection (d), "consumer price
10index-u" means the index published by the Bureau of Labor
11Statistics of the United States Department of Labor that
12measures the average change in prices of goods and services
13purchased by all urban consumers, United States city average,
14all items, 1982-84 = 100. The new amount resulting from each
15annual adjustment shall be determined by the Public Pension
16Division of the Department of Insurance and made available to
17the boards of the pension funds.
18(Source: P.A. 93-654, eff. 1-16-04.)
 
19    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
20    Sec. 6-165. Financing; tax.
21    (a) Except as expressly provided in this Section, each city
22shall levy a tax annually upon all taxable property therein for
23the purpose of providing revenue for the fund. For the years
24prior to the year 1960, the tax rate shall be as provided for
25in the "Firemen's Annuity and Benefit Fund of the Illinois

 

 

SB3538 Enrolled- 58 -LRB096 18789 AMC 34174 b

1Municipal Code". The tax, from and after January 1, 1968 to and
2including the year 1971, shall not exceed .0863% of the value,
3as equalized or assessed by the Department of Revenue, of all
4taxable property in the city. Beginning with the year 1972 and
5through 2014, each year thereafter the city shall levy a tax
6annually at a rate on the dollar of the value, as equalized or
7assessed by the Department of Revenue of all taxable property
8within such city that will produce, when extended, not to
9exceed an amount equal to the total amount of contributions by
10the employees to the fund made in the calendar year 2 years
11prior to the year for which the annual applicable tax is
12levied, multiplied by 2.23 through the calendar year 1981, and
13by 2.26 for the year 1982 and for each year through 2014
14thereafter. Beginning in 2015, the city council shall levy a
15tax annually at a rate on the dollar of the assessed valuation
16of all taxable property that will produce when extended an
17annual amount that is equal to (1) the normal cost to the Fund,
18plus (2) an annual amount sufficient to bring the total assets
19of the Fund up to 90% of the total actuarial liabilities of the
20Fund by the end of fiscal year 2040, as annually updated and
21determined by an enrolled actuary employed by the Illinois
22Department of Insurance or by an enrolled actuary retained by
23the Fund or the city. In making these determinations, the
24required minimum employer contribution shall be calculated
25each year as a level percentage of payroll over the years
26remaining up to and including fiscal year 2040 and shall be

 

 

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1determined under the projected unit credit actuarial cost
2method.
3    To provide revenue for the ordinary death benefit
4established by Section 6-150 of this Article, in addition to
5the contributions by the firemen for this purpose, the city
6council shall for the year 1962 and each year thereafter
7annually levy a tax, which shall be in addition to and
8exclusive of the taxes authorized to be levied under the
9foregoing provisions of this Section, upon all taxable property
10in the city, as equalized or assessed by the Department of
11Revenue, at such rate per cent of the value of such property as
12shall be sufficient to produce for each year the sum of
13$142,000.
14    The amounts produced by the taxes levied annually, together
15with the deposit expressly authorized in this Section, shall be
16sufficient, when added to the amounts deducted from the
17salaries of firemen and applied to the fund, to provide for the
18purposes of the fund.
19    (a-5) For purposes of determining the required employer
20contribution to the Fund, the value of the Fund's assets shall
21be equal to the actuarial value of the Fund's assets, which
22shall be calculated as follows:
23        (1) On March 30, 2011, the actuarial value of the
24    Fund's assets shall be equal to the market value of the
25    assets as of that date.
26        (2) In determining the actuarial value of the Fund's

 

 

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1    assets for fiscal years after March 30, 2011, any actuarial
2    gains or losses from investment return incurred in a fiscal
3    year shall be recognized in equal annual amounts over the
4    5-year period following that fiscal year.
5    (a-7) If the city fails to transmit to the Fund
6contributions required of it under this Article for more than
790 days after the payment of those contributions is due, the
8Fund may, after giving notice to the city, certify to the State
9Comptroller the amounts of the delinquent payments, and the
10Comptroller must, beginning in fiscal year 2016, deduct and
11deposit into the Fund the certified amounts or a portion of
12those amounts from the following proportions of grants of State
13funds to the city:
14        (1) in fiscal year 2016, one-third of the total amount
15    of any grants of State funds to the city;
16        (2) in fiscal year 2017, two-thirds of the total amount
17    of any grants of State funds to the city; and
18        (3) in fiscal year 2018 and each fiscal year
19    thereafter, the total amount of any grants of State funds
20    to the city.
21    The State Comptroller may not deduct from any grants of
22State funds to the city more than the amount of delinquent
23payments certified to the State Comptroller by the Fund.
24    (b) The taxes shall be levied and collected in like manner
25with the general taxes of the city, and shall be in addition to
26all other taxes which the city may levy upon all taxable

 

 

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1property therein and shall be exclusive of and in addition to
2the amount of tax the city may levy for general purposes under
3Section 8-3-1 of the Illinois Municipal Code, approved May 29,
41961, as amended, or under any other law or laws which may
5limit the amount of tax which the city may levy for general
6purposes.
7    (c) The amounts of the taxes to be levied in each year
8shall be certified to the city council by the board.
9    (d) As soon as any revenue derived from such taxes is
10collected, it shall be paid to the city treasurer and held for
11the benefit of the fund, and all such revenue shall be paid
12into the fund in accordance with the provisions of this
13Article.
14    (e) If the funds available are insufficient during any year
15to meet the requirements of this Article, the city may issue
16tax anticipation warrants, against the tax levies herein
17authorized for the current fiscal year.
18    (f) The various sums, hereinafter stated, including
19interest, to be contributed by the city, shall be taken from
20the revenue derived from the taxes or otherwise as expressly
21provided in this Section. Except for defraying the cost of
22administration of the fund during the calendar year in which a
23city first attains a population of 500,000 and comes under the
24provisions of this Article and the first calendar year
25thereafter, any money of the city derived from any source other
26than these taxes or the sale of tax anticipation warrants shall

 

 

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1not be used to provide revenue for the fund, nor to pay any
2part of the cost of administration thereof, unless applied to
3make the deposit expressly authorized in this Section or the
4additional city contributions required under subsection (h).
5    (g) In lieu of levying all or a portion of the tax required
6under this Section in any year, the city may deposit with the
7city treasurer no later than March 1 of that year for the
8benefit of the fund, to be held in accordance with this
9Article, an amount that, together with the taxes levied under
10this Section for that year, is not less than the amount of the
11city contributions for that year as certified by the board to
12the city council. The deposit may be derived from any source
13legally available for that purpose, including, but not limited
14to, the proceeds of city borrowings. The making of a deposit
15shall satisfy fully the requirements of this Section for that
16year to the extent of the amounts so deposited. Amounts
17deposited under this subsection may be used by the fund for any
18of the purposes for which the proceeds of the taxes levied
19under this Section may be used, including the payment of any
20amount that is otherwise required by this Article to be paid
21from the proceeds of those taxes.
22    (h) In addition to the contributions required under the
23other provisions of this Article, by November 1 of the
24following specified years, the city shall deposit with the city
25treasurer for the benefit of the fund, to be held and used in
26accordance with this Article, the following specified amounts:

 

 

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1$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
2$5,040,000 in 2002; and $4,620,000 in 2003.
3    The additional city contributions required under this
4subsection are intended to decrease the unfunded liability of
5the fund and shall not decrease the amount of the city
6contributions required under the other provisions of this
7Article. The additional city contributions made under this
8subsection may be used by the fund for any of its lawful
9purposes.
10(Source: P.A. 93-654, eff. 1-16-04.)
 
11    (40 ILCS 5/6-229 new)
12    Sec. 6-229. Provisions applicable to new hires.
13    (a) Notwithstanding any other provision of this Article,
14the provisions of this Section apply to a person who first
15becomes a fireman under this Article on or after January 1,
162011.
17    (b) A fireman age 55 or more who has 10 or more years of
18service in that capacity shall be entitled at his option to
19receive a monthly retirement annuity for his service as a
20fireman computed by multiplying 2.5% for each year of such
21service by his or her final average salary.
22    The retirement annuity of a fireman who is retiring after
23attaining age 50 with 10 or more years of creditable service
24shall be reduced by one-half of 1% for each month that the
25fireman's age is under age 55.

 

 

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1    The maximum retirement annuity under this subsection (b)
2shall be 75% of final average salary.
3    For the purposes of this subsection (b), "final average
4salary" means the average monthly salary obtained by dividing
5the total salary of the fireman during the 96 consecutive
6months of service within the last 120 months of service in
7which the total salary was the highest by the number of months
8of service in that period.
9    Beginning on January 1, 2011, for all purposes under this
10Code (including without limitation the calculation of benefits
11and employee contributions), the annual salary based on the
12plan year of a member or participant to whom this Section
13applies shall not exceed $106,800; however, that amount shall
14annually thereafter be increased by the lesser of (i) 3% of
15that amount, including all previous adjustments, or (ii)
16one-half the annual unadjusted percentage increase (but not
17less than zero) in the consumer price index-u for the 12 months
18ending with the September preceding each November 1, including
19all previous adjustments.
20    (c) Notwithstanding any other provision of this Article,
21for a person who first becomes a fireman under this Article on
22or after January 1, 2011, the annuity to which the surviving
23spouse, children, or parents are entitled under this subsection
24(c) shall be in the amount of 66 2/3% of the fireman's earned
25pension at the date of death.
26    Notwithstanding any other provision of this Article, the

 

 

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1monthly annuity of a survivor of a person who first becomes a
2fireman under this Article on or after January 1, 2011 shall be
3increased on the January 1 after attainment of age 60 by the
4recipient of the survivor's pension and each January 1
5thereafter by 3% or one-half the annual unadjusted percentage
6increase in the consumer price index-u for the 12 months ending
7with September preceding each November 1, whichever is less, of
8the originally granted survivor's annuity. If the annual
9unadjusted percentage change in the consumer price index-u for
10a 12-month period ending in September is zero or, when compared
11with the preceding period, decreases, then the annuity shall
12not be increased.
 
13    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
14    Sec. 7-142.1. Sheriff's law enforcement employees.
15    (a) In lieu of the retirement annuity provided by
16subparagraph 1 of paragraph (a) of Section 7-142:
17    Any sheriff's law enforcement employee who has 20 or more
18years of service in that capacity and who terminates service
19prior to January 1, 1988 shall be entitled at his option to
20receive a monthly retirement annuity for his service as a
21sheriff's law enforcement employee computed by multiplying 2%
22for each year of such service up to 10 years, 2 1/4% for each
23year of such service above 10 years and up to 20 years, and 2
241/2% for each year of such service above 20 years, by his
25annual final rate of earnings and dividing by 12.

 

 

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1    Any sheriff's law enforcement employee who has 20 or more
2years of service in that capacity and who terminates service on
3or after January 1, 1988 and before July 1, 2004 shall be
4entitled at his option to receive a monthly retirement annuity
5for his service as a sheriff's law enforcement employee
6computed by multiplying 2.5% for each year of such service up
7to 20 years, 2% for each year of such service above 20 years
8and up to 30 years, and 1% for each year of such service above
930 years, by his annual final rate of earnings and dividing by
1012.
11    Any sheriff's law enforcement employee who has 20 or more
12years of service in that capacity and who terminates service on
13or after July 1, 2004 shall be entitled at his or her option to
14receive a monthly retirement annuity for service as a sheriff's
15law enforcement employee computed by multiplying 2.5% for each
16year of such service by his annual final rate of earnings and
17dividing by 12.
18    If a sheriff's law enforcement employee has service in any
19other capacity, his retirement annuity for service as a
20sheriff's law enforcement employee may be computed under this
21Section and the retirement annuity for his other service under
22Section 7-142.
23    In no case shall the total monthly retirement annuity for
24persons who retire before July 1, 2004 exceed 75% of the
25monthly final rate of earnings. In no case shall the total
26monthly retirement annuity for persons who retire on or after

 

 

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1July 1, 2004 exceed 80% of the monthly final rate of earnings.
2    (b) Whenever continued group insurance coverage is elected
3in accordance with the provisions of Section 367h of the
4Illinois Insurance Code, as now or hereafter amended, the total
5monthly premium for such continued group insurance coverage or
6such portion thereof as is not paid by the municipality shall,
7upon request of the person electing such continued group
8insurance coverage, be deducted from any monthly pension
9benefit otherwise payable to such person pursuant to this
10Section, to be remitted by the Fund to the insurance company or
11other entity providing the group insurance coverage.
12    (c) A sheriff's law enforcement employee who has service in
13any other capacity may convert up to 10 years of that service
14into service as a sheriff's law enforcement employee by paying
15to the Fund an amount equal to (1) the additional employee
16contribution required under Section 7-173.1, plus (2) the
17additional employer contribution required under Section 7-172,
18plus (3) interest on items (1) and (2) at the prescribed rate
19from the date of the service to the date of payment.
20    (d) The changes to subsections (a) and (b) of this Section
21made by this amendatory Act of the 94th General Assembly apply
22only to persons in service on or after July 1, 2004. In the
23case of such a person who begins to receive a retirement
24annuity before the effective date of this amendatory Act of the
2594th General Assembly, the annuity shall be recalculated
26prospectively to reflect those changes, with the resulting

 

 

SB3538 Enrolled- 68 -LRB096 18789 AMC 34174 b

1increase beginning to accrue on the first annuity payment date
2following the effective date of this amendatory Act.
3    (e) Any elected county officer who was entitled to receive
4a stipend from the State on or after July 1, 2009 and on or
5before June 30, 2010 may establish earnings credit for the
6amount of stipend not received, if the elected county official
7applies in writing to the fund within 6 months after the
8effective date of this amendatory Act of the 96th General
9Assembly and pays to the fund an amount equal to (i) employee
10contributions on the amount of stipend not received, (ii)
11employer contributions determined by the Board equal to the
12employer's normal cost of the benefit on the amount of stipend
13not received, plus (iii) interest on items (i) and (ii) at the
14actuarially assumed rate.
15    (f) Notwithstanding any other provision of this Article,
16the provisions of this subsection (f) apply to a person who
17first becomes a sheriff's law enforcement employee under this
18Article on or after January 1, 2011.
19    A sheriff's law enforcement employee age 55 or more who has
2010 or more years of service in that capacity shall be entitled
21at his option to receive a monthly retirement annuity for his
22or her service as a sheriff's law enforcement employee computed
23by multiplying 2.5% for each year of such service by his or her
24final rate of earnings.
25    The retirement annuity of a sheriff's law enforcement
26employee who is retiring after attaining age 50 with 10 or more

 

 

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1years of creditable service shall be reduced by one-half of 1%
2for each month that the sheriff's law enforcement employee's
3age is under age 55.
4    The maximum retirement annuity under this subsection (f)
5shall be 75% of final rate of earnings.
6    For the purposes of this subsection (f), "final rate of
7earnings" means the average monthly earnings obtained by
8dividing the total salary of the sheriff's law enforcement
9employee during the 96 consecutive months of service within the
10last 120 months of service in which the total earnings was the
11highest by the number of months of service in that period.
12    Notwithstanding any other provision of this Article,
13beginning on January 1, 2011, for all purposes under this Code
14(including without limitation the calculation of benefits and
15employee contributions), the annual earnings of a sheriff's law
16enforcement employee to whom this Section applies shall not
17include overtime and shall not exceed $106,800; however, that
18amount shall annually thereafter be increased by the lesser of
19(i) 3% of that amount, including all previous adjustments, or
20(ii) one-half the annual unadjusted percentage increase (but
21not less than zero) in the consumer price index-u for the 12
22months ending with the September preceding each November 1,
23including all previous adjustments.
24    (g) Notwithstanding any other provision of this Article,
25the monthly annuity of a person who first becomes a sheriff's
26law enforcement employee under this Article on or after January

 

 

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11, 2011 shall be increased on the January 1 occurring either on
2or after the attainment of age 60 or the first anniversary of
3the annuity start date, whichever is later. Each annual
4increase shall be calculated at 3% or one-half the annual
5unadjusted percentage increase (but not less than zero) in the
6consumer price index-u for the 12 months ending with the
7September preceding each November 1, whichever is less, of the
8originally granted retirement annuity. If the annual
9unadjusted percentage change in the consumer price index-u for
10a 12-month period ending in September is zero or, when compared
11with the preceding period, decreases, then the annuity shall
12not be increased.
13    (h) Notwithstanding any other provision of this Article,
14for a person who first becomes a sheriff's law enforcement
15employee under this Article on or after January 1, 2011, the
16annuity to which the surviving spouse, children, or parents are
17entitled under this subsection (h) shall be in the amount of 66
182/3% of the sheriff's law enforcement employee's earned annuity
19at the date of death.
20    (i) Notwithstanding any other provision of this Article,
21the monthly annuity of a survivor of a person who first becomes
22a sheriff's law enforcement employee under this Article on or
23after January 1, 2011 shall be increased on the January 1 after
24attainment of age 60 by the recipient of the survivor's annuity
25and each January 1 thereafter by 3% or one-half the annual
26unadjusted percentage increase in the consumer price index-u

 

 

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1for the 12 months ending with the September preceding each
2November 1, whichever is less, of the originally granted
3pension. If the annual unadjusted percentage change in the
4consumer price index-u for a 12-month period ending in
5September is zero or, when compared with the preceding period,
6decreases, then the annuity shall not be increased.
7    (j) For the purposes of this Section, "consumer price
8index-u" means the index published by the Bureau of Labor
9Statistics of the United States Department of Labor that
10measures the average change in prices of goods and services
11purchased by all urban consumers, United States city average,
12all items, 1982-84 = 100. The new amount resulting from each
13annual adjustment shall be determined by the Public Pension
14Division of the Department of Insurance and made available to
15the boards of the pension funds.
16(Source: P.A. 96-961, eff. 7-2-10.)
 
17    Section 99. Effective date. This Act takes effect January
181, 2011.