Rep. Kevin A. McCarthy

Filed: 5/18/2011

 

 


 

 


 
09700SB1672ham002LRB097 07602 JDS 55801 a

1
AMENDMENT TO SENATE BILL 1672

2    AMENDMENT NO. ______. Amend Senate Bill 1672, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Section 1-118, 3-125, 4-118, 5-168, 5-238, 6-165,
76-211, and 6-229 as follows:
 
8    (40 ILCS 5/1-118)
9    Sec. 1-118. Veterans' rights.
10    (a) All pension funds and retirement systems subject to
11this Code shall comply with the requirements imposed on them by
12the federal Uniformed Services Employment and Reemployment
13Rights Act (P.L. 103-353).
14    (b) All pension funds and retirement systems subject to
15this Code shall comply with the federal Heroes Earnings
16Assistance and Relief Tax Act of 2008 (P.L. 110-245).

 

 

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1(Source: P.A. 90-19, eff. 6-20-97.)
 
2    (40 ILCS 5/3-125)  (from Ch. 108 1/2, par. 3-125)
3    Sec. 3-125. Financing.
4    (a) The city council or the board of trustees of the
5municipality shall annually levy a tax upon all the taxable
6property of the municipality at the rate on the dollar which
7will produce an amount which, when added to the deductions from
8the salaries or wages of police officers, and revenues
9available from other sources, will equal a sum sufficient to
10meet the annual requirements of the police pension fund. The
11annual requirements to be provided by such tax levy are equal
12to (1) the normal cost of the pension fund for the year
13involved, plus (2) an amount sufficient to bring the total
14assets of the pension fund up to 90% of the total actuarial
15liabilities of the pension fund by the end of municipal fiscal
16year 2040, as annually updated and determined by an enrolled
17actuary employed by the Illinois Department of Insurance or by
18an enrolled actuary retained by the pension fund or the
19municipality. In making these determinations, the required
20minimum employer contribution shall be calculated each year as
21a level percentage of payroll over the years remaining up to
22and including fiscal year 2040 and shall be determined under
23the projected unit credit actuarial cost method. The tax shall
24be levied and collected in the same manner as the general taxes
25of the municipality, and in addition to all other taxes now or

 

 

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1hereafter authorized to be levied upon all property within the
2municipality, and shall be in addition to the amount authorized
3to be levied for general purposes as provided by Section 8-3-1
4of the Illinois Municipal Code, approved May 29, 1961, as
5amended. The tax shall be forwarded directly to the treasurer
6of the board within 30 business days after receipt by the
7county.
8    (b) For purposes of determining the required employer
9contribution to a pension fund, the value of the pension fund's
10assets shall be equal to the actuarial value of the pension
11fund's assets, which shall be calculated as follows:
12        (1) On March 30, 2011, the actuarial value of a pension
13    fund's assets shall be equal to the market value of the
14    assets as of that date.
15        (2) In determining the actuarial value of the System's
16    assets for fiscal years after March 30, 2011, any actuarial
17    gains or losses from investment return incurred in a fiscal
18    year shall be recognized in equal annual amounts over the
19    5-year period following that fiscal year.
20    (c) If a participating municipality fails to transmit to
21the fund contributions required of it under this Article for
22more than 90 days after the payment of those contributions is
23due, the fund may, after giving notice to the municipality,
24certify to the State Comptroller the amounts of the delinquent
25payments, and the Comptroller must, beginning in fiscal year
262016, deduct and deposit into the fund the certified amounts or

 

 

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1a portion of those amounts from the following proportions of
2grants of State funds to the municipality:
3        (1) in fiscal year 2016, one-third of the total amount
4    of any grants of State funds to the municipality;
5        (2) in fiscal year 2017, two-thirds of the total amount
6    of any grants of State funds to the municipality; and
7        (3) in fiscal year 2018 and each fiscal year
8    thereafter, the total amount of any grants of State funds
9    to the municipality.
10    The State Comptroller may not deduct from any grants of
11State funds to the municipality more than the amount of
12delinquent payments certified to the State Comptroller by the
13fund.
14    (d) The police pension fund shall consist of the following
15moneys which shall be set apart by the treasurer of the
16municipality:
17        (1) All moneys derived from the taxes levied hereunder;
18        (2) Contributions by police officers under Section
19    3-125.1;
20        (3) All moneys accumulated by the municipality under
21    any previous legislation establishing a fund for the
22    benefit of disabled or retired police officers;
23        (4) Donations, gifts or other transfers authorized by
24    this Article.
25    (e) The Commission on Government Forecasting and
26Accountability shall conduct a study of all funds established

 

 

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1under this Article and shall report its findings to the General
2Assembly on or before January 1, 2013. To the fullest extent
3possible, the study shall include, but not be limited to, the
4following:
5        (1) fund balances;
6        (2) historical employer contribution rates for each
7    fund;
8        (3) the actuarial formulas used as a basis for employer
9    contributions, including the actual assumed rate of return
10    for each year, for each fund;
11        (4) available contribution funding sources;
12        (5) the impact of any revenue limitations caused by
13    PTELL and employer home rule or non-home rule status; and
14        (6) existing statutory funding compliance procedures
15    and funding enforcement mechanisms for all municipal
16    pension funds.
17(Source: P.A. 95-530, eff. 8-28-07; 96-1495, eff. 1-1-11.)
 
18    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
19    Sec. 4-118. Financing.
20    (a) The city council or the board of trustees of the
21municipality shall annually levy a tax upon all the taxable
22property of the municipality at the rate on the dollar which
23will produce an amount which, when added to the deductions from
24the salaries or wages of firefighters and revenues available
25from other sources, will equal a sum sufficient to meet the

 

 

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1annual actuarial requirements of the pension fund, as
2determined by an enrolled actuary employed by the Illinois
3Department of Insurance or by an enrolled actuary retained by
4the pension fund or municipality. For the purposes of this
5Section, the annual actuarial requirements of the pension fund
6are equal to (1) the normal cost of the pension fund, or 17.5%
7of the salaries and wages to be paid to firefighters for the
8year involved, whichever is greater, plus (2) an annual amount
9sufficient to bring the total assets of the pension fund up to
1090% of the total actuarial liabilities of the pension fund by
11the end of municipal fiscal year 2040, as annually updated and
12determined by an enrolled actuary employed by the Illinois
13Department of Insurance or by an enrolled actuary retained by
14the pension fund or the municipality. In making these
15determinations, the required minimum employer contribution
16shall be calculated each year as a level percentage of payroll
17over the years remaining up to and including fiscal year 2040
18and shall be determined under the projected unit credit
19actuarial cost method. The amount to be applied towards the
20amortization of the unfunded accrued liability in any year
21shall not be less than the annual amount required to amortize
22the unfunded accrued liability, including interest, as a level
23percentage of payroll over the number of years remaining in the
2440 year amortization period.
25    (a-5) For purposes of determining the required employer
26contribution to a pension fund, the value of the pension fund's

 

 

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1assets shall be equal to the actuarial value of the pension
2fund's assets, which shall be calculated as follows:
3        (1) On March 30, 2011, the actuarial value of a pension
4    fund's assets shall be equal to the market value of the
5    assets as of that date.
6        (2) In determining the actuarial value of the pension
7    fund's assets for fiscal years after March 30, 2011, any
8    actuarial gains or losses from investment return incurred
9    in a fiscal year shall be recognized in equal annual
10    amounts over the 5-year period following that fiscal year.
11    (b) The tax shall be levied and collected in the same
12manner as the general taxes of the municipality, and shall be
13in addition to all other taxes now or hereafter authorized to
14be levied upon all property within the municipality, and in
15addition to the amount authorized to be levied for general
16purposes, under Section 8-3-1 of the Illinois Municipal Code or
17under Section 14 of the Fire Protection District Act. The tax
18shall be forwarded directly to the treasurer of the board
19within 30 business days of receipt by the county (or, in the
20case of amounts added to the tax levy under subsection (f),
21used by the municipality to pay the employer contributions
22required under subsection (b-1) of Section 15-155 of this
23Code).
24    (b-5) If a participating municipality fails to transmit to
25the fund contributions required of it under this Article for
26more than 90 days after the payment of those contributions is

 

 

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1due, the fund may, after giving notice to the municipality,
2certify to the State Comptroller the amounts of the delinquent
3payments, and the Comptroller must, beginning in fiscal year
42016, deduct and deposit into the fund the certified amounts or
5a portion of those amounts from the following proportions of
6grants of State funds to the municipality:
7        (1) in fiscal year 2016, one-third of the total amount
8    of any grants of State funds to the municipality;
9        (2) in fiscal year 2017, two-thirds of the total amount
10    of any grants of State funds to the municipality; and
11        (3) in fiscal year 2018 and each fiscal year
12    thereafter, the total amount of any grants of State funds
13    to the municipality.
14    The State Comptroller may not deduct from any grants of
15State funds to the municipality more than the amount of
16delinquent payments certified to the State Comptroller by the
17fund.
18    (c) The board shall make available to the membership and
19the general public for inspection and copying at reasonable
20times the most recent Actuarial Valuation Balance Sheet and Tax
21Levy Requirement issued to the fund by the Department of
22Insurance.
23    (d) The firefighters' pension fund shall consist of the
24following moneys which shall be set apart by the treasurer of
25the municipality: (1) all moneys derived from the taxes levied
26hereunder; (2) contributions by firefighters as provided under

 

 

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1Section 4-118.1; (3) all rewards in money, fees, gifts, and
2emoluments that may be paid or given for or on account of
3extraordinary service by the fire department or any member
4thereof, except when allowed to be retained by competitive
5awards; and (4) any money, real estate or personal property
6received by the board.
7    (e) For the purposes of this Section, "enrolled actuary"
8means an actuary: (1) who is a member of the Society of
9Actuaries or the American Academy of Actuaries; and (2) who is
10enrolled under Subtitle C of Title III of the Employee
11Retirement Income Security Act of 1974, or who has been engaged
12in providing actuarial services to one or more public
13retirement systems for a period of at least 3 years as of July
141, 1983.
15    (f) The corporate authorities of a municipality that
16employs a person who is described in subdivision (d) of Section
174-106 may add to the tax levy otherwise provided for in this
18Section an amount equal to the projected cost of the employer
19contributions required to be paid by the municipality to the
20State Universities Retirement System under subsection (b-1) of
21Section 15-155 of this Code.
22    (g) The Commission on Government Forecasting and
23Accountability shall conduct a study of all funds established
24under this Article and shall report its findings to the General
25Assembly on or before January 1, 2013. To the fullest extent
26possible, the study shall include, but not be limited to, the

 

 

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1following:
2        (1) fund balances;
3        (2) historical employer contribution rates for each
4    fund;
5        (3) the actuarial formulas used as a basis for employer
6    contributions, including the actual assumed rate of return
7    for each year, for each fund;
8        (4) available contribution funding sources;
9        (5) the impact of any revenue limitations caused by
10    PTELL and employer home rule or non-home rule status; and
11        (6) existing statutory funding compliance procedures
12    and funding enforcement mechanisms for all municipal
13    pension funds.
14(Source: P.A. 96-1495, eff. 1-1-11.)
 
15    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
16    Sec. 5-168. Financing.
17    (a) Except as expressly provided in this Section, the city
18shall levy a tax annually upon all taxable property therein for
19the purpose of providing revenue for the fund.
20    The tax shall be at a rate that will produce a sum which,
21when added to the amounts deducted from the policemen's
22salaries and the amounts deposited in accordance with
23subsection (g), is sufficient for the purposes of the fund.
24    For the years 1968 and 1969, the city council shall levy a
25tax annually at a rate on the dollar of the assessed valuation

 

 

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1of all taxable property that will produce, when extended, not
2to exceed $9,700,000. Beginning with the year 1970 and through
32014, the city council shall levy a tax annually at a rate on
4the dollar of the assessed valuation of all taxable property
5that will produce when extended an amount not to exceed the
6total amount of contributions by the policemen to the Fund made
7in the calendar year 2 years before the year for which the
8applicable annual tax is levied, multiplied by 1.40 for the tax
9levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
101.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
11by 2.00 for 1982 and for each year through 2014. Beginning in
122015, the city council shall levy a tax annually at a rate on
13the dollar of the assessed valuation of all taxable property
14that will produce when extended an annual amount that is equal
15to (1) the net employer normal cost to the Fund, plus (2) an
16annual amount sufficient to bring the total assets of the Fund
17up to 90% of the total actuarial liabilities of the Fund by the
18end of fiscal year 2040, as annually updated and determined by
19an enrolled actuary employed by the Illinois Department of
20Insurance or by an enrolled actuary retained by the Fund or the
21city. In making these determinations, the required minimum
22employer contribution shall be calculated each year as a level
23percentage of payroll over the years remaining up to and
24including fiscal year 2040 and in no event should be less than
25the net employer normal cost shall be determined under the
26projected unit credit actuarial cost method. For the purposes

 

 

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1of this subsection (a), contributions by the policeman to the
2Fund shall not include payments made by a policeman to
3establish credit under Section 5-214.2 of this Code.
4    (a-5) For purposes of determining the required employer
5contribution to the Fund, the value of the Fund's assets shall
6be equal to the actuarial value of the Fund's assets, which
7shall be calculated as follows:
8        (1) On December 31, 2013 March 30, 2011, the actuarial
9    value of the Fund's assets shall be equal to the market
10    value of the assets as of December 31, 2013 that date.
11        (2) In determining the actuarial value of the Fund's
12    assets for fiscal years after December 31, 2013 March 30,
13    2011, any actuarial gains or losses from investment return
14    incurred in a fiscal year shall be recognized in equal
15    annual amounts over the 5-year period following that fiscal
16    year.
17    (a-7) If the city fails to transmit to the Fund
18contributions required of it under this Article for more than
1990 days after the last day of the Fund's fiscal year in which
20those contributions are payment of those contributions is due,
21the Fund shall may, after giving notice to the city, certify to
22the State Comptroller the amounts of the delinquent payments,
23and the Comptroller must, beginning in fiscal year 2017 2016,
24deduct and deposit into the Fund by the end of each respective
25fiscal year the certified amounts or a portion of those amounts
26from the following proportions of grants of State funds to the

 

 

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1city:
2        (1) in fiscal year 2017 2016, one-third of the total
3    amount of any grants of State funds to the city;
4        (2) in fiscal year 2018 2017, two-thirds of the total
5    amount of any grants of State funds to the city; and
6        (3) in fiscal year 2019 2018 and each fiscal year
7    thereafter, the total amount of any grants of State funds
8    to the city.
9    The State Comptroller may not deduct from any grants of
10State funds to the city more than the amount of delinquent
11payments certified to the State Comptroller by the Fund.
12    (b) The tax shall be levied and collected in like manner
13with the general taxes of the city, and is in addition to all
14other taxes which the city is now or may hereafter be
15authorized to levy upon all taxable property therein, and is
16exclusive of and in addition to the amount of tax the city is
17now or may hereafter be authorized to levy for general purposes
18under any law which may limit the amount of tax which the city
19may levy for general purposes. The county clerk of the county
20in which the city is located, in reducing tax levies under
21Section 8-3-1 of the Illinois Municipal Code, shall not
22consider the tax herein authorized as a part of the general tax
23levy for city purposes, and shall not include the tax in any
24limitation of the percent of the assessed valuation upon which
25taxes are required to be extended for the city.
26    (c) On or before January 10 of each year, the board shall

 

 

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1notify the city council of the requirement that the tax herein
2authorized be levied by the city council for that current year.
3The board shall compute the amounts necessary for the purposes
4of this fund to be credited to the reserves established and
5maintained within the fund; shall make an annual determination
6of the amount of the required city contributions; and shall
7certify the results thereof to the city council.
8    As soon as any revenue derived from the tax is collected it
9shall be paid to the city treasurer of the city and shall be
10held by him for the benefit of the fund in accordance with this
11Article.
12    (d) If the funds available are insufficient during any year
13to meet the requirements of this Article, the city may issue
14tax anticipation warrants against the tax levy for the current
15fiscal year.
16    (e) The various sums, including interest, to be contributed
17by the city, shall be taken from the revenue derived from such
18tax or otherwise as expressly provided in this Section. Any
19moneys of the city derived from any source other than the tax
20herein authorized shall not be used for any purpose of the fund
21nor the cost of administration thereof, unless applied to make
22the deposit expressly authorized in this Section or the
23additional city contributions required under subsection (h).
24    (f) If it is not possible or practicable for the city to
25make its contributions at the time that salary deductions are
26made, the city shall make such contributions as soon as

 

 

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1possible thereafter, with interest thereon to the time it is
2made.
3    (g) In lieu of levying all or a portion of the tax required
4under this Section in any year, the city may deposit with the
5city treasurer no later than March 1 of that year for the
6benefit of the fund, to be held in accordance with this
7Article, an amount that, together with the taxes levied under
8this Section for that year, is not less than the amount of the
9city contributions for that year as certified by the board to
10the city council. The deposit may be derived from any source
11legally available for that purpose, including, but not limited
12to, the proceeds of city borrowings. The making of a deposit
13shall satisfy fully the requirements of this Section for that
14year to the extent of the amounts so deposited. Amounts
15deposited under this subsection may be used by the fund for any
16of the purposes for which the proceeds of the tax levied under
17this Section may be used, including the payment of any amount
18that is otherwise required by this Article to be paid from the
19proceeds of that tax.
20    (h) In addition to the contributions required under the
21other provisions of this Article, by November 1 of the
22following specified years, the city shall deposit with the city
23treasurer for the benefit of the fund, to be held and used in
24accordance with this Article, the following specified amounts:
25$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
26$5,040,000 in 2002; and $4,620,000 in 2003.

 

 

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1    The additional city contributions required under this
2subsection are intended to decrease the unfunded liability of
3the fund and shall not decrease the amount of the city
4contributions required under the other provisions of this
5Article. The additional city contributions made under this
6subsection may be used by the fund for any of its lawful
7purposes.
8(Source: P.A. 95-1036, eff. 2-17-09; 96-1495, eff. 1-1-11.)
 
9    (40 ILCS 5/5-238)
10    Sec. 5-238. Provisions applicable to new hires.
11    (a) Notwithstanding any other provision of this Article,
12the provisions of this Section apply to a person who first
13becomes a policeman under this Article on or after January 1,
142011.
15    (b) A policeman age 55 or more who has 10 or more years of
16service in that capacity shall be entitled at his option to
17receive a monthly retirement annuity for his service as a
18police officer computed by multiplying 2.5% for each year of
19such service by his or her final average salary.
20    The retirement annuity of a policeman who is retiring after
21attaining age 50 with 10 or more years of creditable service
22shall be reduced by one-half of 1% for each month that the
23police officer's age is under age 55.
24    The maximum retirement annuity under this subsection (b)
25shall be 75% of final average salary.

 

 

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

 

 

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1be increased on the January 1 after attainment of age 60 by the
2recipient of the survivor's annuity and each January 1
3thereafter by 3% or one-half the annual unadjusted percentage
4increase (but not less than zero) in the consumer price index-u
5for the 12 months ending with the September preceding each
6November 1, whichever is less, of the originally granted
7survivor's annuity. If the unadjusted percentage change in the
8consumer price index-u for a 12-month period ending in
9September is zero or, when compared with the preceding period,
10decreases, then the annuity shall not be increased.
11    For the purposes of this Section, "consumer price index-u"
12means the index published by the Bureau of Labor Statistics of
13the United States Department of Labor that measures the average
14change in prices of goods and services purchased by all urban
15consumers, United States city average, all items, 1982-84 =
16100. The new amount resulting from each annual adjustment shall
17be determined by the Public Pension Division of the Department
18of Insurance and made available to the boards of the pension
19funds.
20(Source: P.A. 96-1495, eff. 1-1-11.)
 
21    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
22    Sec. 6-165. Financing; tax.
23    (a) Except as expressly provided in this Section, each city
24shall levy a tax annually upon all taxable property therein for
25the purpose of providing revenue for the fund. For the years

 

 

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1prior to the year 1960, the tax rate shall be as provided for
2in the "Firemen's Annuity and Benefit Fund of the Illinois
3Municipal Code". The tax, from and after January 1, 1968 to and
4including the year 1971, shall not exceed .0863% of the value,
5as equalized or assessed by the Department of Revenue, of all
6taxable property in the city. Beginning with the year 1972 and
7through 2014, the city shall levy a tax annually at a rate on
8the dollar of the value, as equalized or assessed by the
9Department of Revenue of all taxable property within such city
10that will produce, when extended, not to exceed an amount equal
11to the total amount of contributions by the employees to the
12fund made in the calendar year 2 years prior to the year for
13which the annual applicable tax is levied, multiplied by 2.23
14through the calendar year 1981, and by 2.26 for the year 1982
15and for each year through 2014. Beginning in 2015, the city
16council shall levy a tax annually at a rate on the dollar of
17the assessed valuation of all taxable property that will
18produce when extended an annual amount that is equal to (1) the
19normal cost to the Fund, plus (2) an annual amount sufficient
20to bring the total assets of the Fund up to 90% of the total
21actuarial liabilities of the Fund by the end of fiscal year
222040, as annually updated and determined by an enrolled actuary
23employed by the Illinois Department of Insurance or by an
24enrolled actuary retained by the Fund or the city. In making
25these determinations, the required minimum employer
26contribution shall be calculated each year as a level

 

 

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1percentage of payroll over the years remaining up to and
2including fiscal year 2040 and shall be determined under the
3projected unit credit actuarial cost method.
4    To provide revenue for the ordinary death benefit
5established by Section 6-150 of this Article, in addition to
6the contributions by the firemen for this purpose, the city
7council shall, for the year 1962 and each subsequent year
8through 2014, year thereafter annually levy a tax, which shall
9be in addition to and exclusive of the taxes authorized to be
10levied under the foregoing provisions of this Section, upon all
11taxable property in the city, as equalized or assessed by the
12Department of Revenue, at such rate per cent of the value of
13such property as shall be sufficient to produce for each year
14the sum of $142,000.
15    The amounts produced by the taxes levied annually, together
16with the deposit expressly authorized in this Section, shall be
17sufficient, when added to the amounts deducted from the
18salaries of firemen and applied to the fund, to provide for the
19purposes of the fund.
20    (a-5) For purposes of determining the required employer
21contribution to the Fund, the value of the Fund's assets shall
22be equal to the actuarial value of the Fund's assets, which
23shall be calculated as follows:
24        (1) On December 31, 2013 March 30, 2011, the actuarial
25    value of the Fund's assets shall be equal to the market
26    value of the assets as of that date.

 

 

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1        (2) In determining the actuarial value of the Fund's
2    assets for fiscal years after December 31, 2013 March 30,
3    2011, any actuarial gains or losses from investment return
4    incurred in a fiscal year shall be recognized in equal
5    annual amounts over the 5-year period following that fiscal
6    year.
7    (a-7) If the city fails to transmit to the Fund
8contributions required of it under this Article for more than
990 days after the last day of the Fund's fiscal year in which
10those contributions are payment of those contributions is due,
11the Fund shall may, after giving notice to the city, certify to
12the State Comptroller the amounts of the delinquent payments,
13and the Comptroller must, beginning in fiscal year 2017 2016,
14deduct and deposit into the Fund the certified amounts or a
15portion of those amounts from the following proportions of
16grants of State funds to the city:
17        (1) in fiscal year 2017 2016, one-third of the total
18    amount of any grants of State funds to the city;
19        (2) in fiscal year 2018 2017, two-thirds of the total
20    amount of any grants of State funds to the city; and
21        (3) in fiscal year 2019 2018 and each fiscal year
22    thereafter, the total amount of any grants of State funds
23    to the city.
24    The State Comptroller may not deduct from any grants of
25State funds to the city more than the amount of delinquent
26payments certified to the State Comptroller by the Fund.

 

 

09700SB1672ham002- 22 -LRB097 07602 JDS 55801 a

1    (b) The taxes shall be levied and collected in like manner
2with the general taxes of the city, and shall be in addition to
3all other taxes which the city may levy upon all taxable
4property therein and shall be exclusive of and in addition to
5the amount of tax the city may levy for general purposes under
6Section 8-3-1 of the Illinois Municipal Code, approved May 29,
71961, as amended, or under any other law or laws which may
8limit the amount of tax which the city may levy for general
9purposes.
10    (c) The amounts of the taxes to be levied in each year
11shall be certified to the city council by the board.
12    (d) As soon as any revenue derived from such taxes is
13collected, it shall be paid to the city treasurer and held for
14the benefit of the fund, and all such revenue shall be paid
15into the fund in accordance with the provisions of this
16Article.
17    (e) If the funds available are insufficient during any year
18to meet the requirements of this Article, the city may issue
19tax anticipation warrants, against the tax levies herein
20authorized for the current fiscal year.
21    (f) The various sums, hereinafter stated, including
22interest, to be contributed by the city, shall be taken from
23the revenue derived from the taxes or otherwise as expressly
24provided in this Section. Except for defraying the cost of
25administration of the fund during the calendar year in which a
26city first attains a population of 500,000 and comes under the

 

 

09700SB1672ham002- 23 -LRB097 07602 JDS 55801 a

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

 

 

09700SB1672ham002- 24 -LRB097 07602 JDS 55801 a

1following specified years, the city shall deposit with the city
2treasurer for the benefit of the fund, to be held and used in
3accordance with this Article, the following specified amounts:
4$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
5$5,040,000 in 2002; and $4,620,000 in 2003.
6    The additional city contributions required under this
7subsection are intended to decrease the unfunded liability of
8the fund and shall not decrease the amount of the city
9contributions required under the other provisions of this
10Article. The additional city contributions made under this
11subsection may be used by the fund for any of its lawful
12purposes.
13(Source: P.A. 96-1495, eff. 1-1-11.)
 
14    (40 ILCS 5/6-211)   (from Ch. 108 1/2, par. 6-211)
15    Sec. 6-211. Permanent and temporary positions; exempt
16positions above career service rank.
17    (a) Except as specified in subsection (b), no annuity,
18pension or other benefit shall be paid to a fireman or widow,
19under this Article, based upon any salary paid by virtue of a
20temporary appointment, and all contributions, annuities and
21benefits shall be related to the salary which attaches to the
22permanent position of the fireman.
23    Any fireman temporarily serving in a position or rank other
24than that to which he has received permanent appointment shall
25be considered, while so serving, as though he were in his

 

 

09700SB1672ham002- 25 -LRB097 07602 JDS 55801 a

1permanent position or rank, except that no increase in any
2pension, annuity or other benefit hereunder shall accrue to him
3by virtue of any service performed by him subsequent to
4attaining the compulsory retirement age provided by law or
5ordinance.
6    This Section does not apply to any person certified to the
7fire department by the civil service commission of the city,
8during the period of probationary service.
9    A fireman who holds a position at the will of the Fire
10Commissioner or other appointing authority, whether or not such
11position is an "exempt" position, shall be deemed to hold a
12temporary position.
13    (b) Beginning on the effective date of this amendatory Act
14of the 93rd General Assembly, for service in an exempt position
15above career service rank, employee contributions shall be
16based on the actual full salary attached to the exempt rank
17position held by the fireman.
18    For service in an exempt position above career service
19rank, benefit computations under this Article shall be based on
20the actual full salary attached to the exempt rank position
21held by the fireman if and only if:
22        (1) employee contributions have been paid on the actual
23    full salary attached to the exempt rank position held by
24    the fireman for all service on or after January 1, 1994 in
25    an exempt position above career service rank;
26        (2) the fireman has held one or more exempt positions

 

 

09700SB1672ham002- 26 -LRB097 07602 JDS 55801 a

1    for at least 5 consecutive years (or, in the case of a
2    fireman who retired due to attainment of compulsory
3    retirement age before December 1, 2003, held one or more
4    exempt positions for a consecutive period of at least 3
5    years and 9 months and made the payment required under
6    subsection (c) for a period of at least 5 years) and has
7    held the rank of battalion chief or paramedic field chief
8    field officer for at least 5 years (at least 3 years and 9
9    months in the case of a fireman who retired due to
10    attainment of compulsory retirement age before December 1,
11    2003) during the exempt period; and
12        (3) the fireman was born before 1955.
13    (c) For service prior to the effective date of this
14amendatory Act of the 93rd General Assembly in an exempt
15position above career service rank for which contributions have
16been paid only on the salary attached to the fireman's
17permanent career service rank, a fireman may make the
18contributions required under subsection (b) by paying to the
19Fund before the later of the date of retirement or 6 months
20after the effective date of this amendatory Act, but in no
21event later than July 1, 2005, an amount equal to the
22difference between the employee contributions actually made
23for that service and the employee contributions that would have
24been made based on the actual full salary attached to the
25exempt rank position held by the fireman on or after January 1,
261994, plus interest thereon at the rate of 4% per year,

 

 

09700SB1672ham002- 27 -LRB097 07602 JDS 55801 a

1compounded annually, from the date of the service to the date
2of payment (or to the date of retirement if retirement is
3before the effective date of this amendatory Act). In the case
4of a fireman who retired in an exempt rank position after
5January 1, 1994 and before January 1, 1999 and in the case of a
6fireman who retired due to attaining compulsory retirement age
7before December 1, 2003, the payment under this subsection (c)
8shall be for a period of at least 5 years.
9    If a fireman dies while eligible to make the contributions
10required under subsection (b) but before the contributions are
11paid, the fireman's widow may elect to make the contributions.
12    (d) Subsection (e) of Section 6-111 and the changes made to
13this Section by this amendatory Act of the 93rd General
14Assembly apply to a fireman who retires (or becomes disabled)
15on or after January 1, 1994. In the case of a benefit payable
16on the effective date of this amendatory Act, the resulting
17increase in benefit shall begin to accrue with the first
18benefit payment period commencing after the required
19contributions are paid.
20    (e) If a fireman or his survivors do not qualify to have
21benefits computed on the full amount of salary received for
22service in an exempt position as provided in subsection (b),
23benefits shall be computed on the basis of the salary attached
24to the permanent career service rank, and a refund of any
25employee contributions paid on the difference between the
26actual salary and the salary attached to the permanent career

 

 

09700SB1672ham002- 28 -LRB097 07602 JDS 55801 a

1service rank shall be payable to the fireman upon termination
2of service, or to the fireman's widow or estate upon the
3fireman's death.
4    (f) The tax levy computed under Section 6-165 shall be
5based on employee contributions, including the payments of
6employee contributions under subsections (a), (b), and (c) of
7this Section 6-211.
8    (g) The city shall pay to the Fund on an annual basis
9through 2015, in addition to the usual city contributions, an
10amount at least equal to the sum of (1) the increase in normal
11cost resulting from subsection (e) of Section 6-111 and the
12changes made to this Section by this amendatory Act of the 93rd
13General Assembly, plus (2) amortization (over a period of 30
14years from the effective date of this amendatory Act) of the
15initial unfunded liability resulting from subsection (e) of
16Section 6-111 and the changes made to this Section by this
17amendatory Act of the 93rd General Assembly. The payment
18required under this subsection shall be no less than $400,000
19per year. Payment shall begin with the first calendar year
20commencing after the effective date of this amendatory Act and
21shall be in addition to the tax levy otherwise calculated under
22Section 6-165. The city may increase that tax levy by the
23amount of the payment required under this subsection, or it may
24utilize any funds appropriated for this purpose.
25(Source: P.A. 93-654, eff. 1-16-04.)
 

 

 

09700SB1672ham002- 29 -LRB097 07602 JDS 55801 a

1    (40 ILCS 5/6-229)
2    Sec. 6-229. Provisions applicable to new hires.
3    (a) Notwithstanding any other provision of this Article,
4the provisions of this Section apply to a person who first
5becomes a fireman under this Article on or after January 1,
62011.
7    (b) A fireman age 55 or more who has 10 or more years of
8service in that capacity shall be entitled at his option to
9receive a monthly retirement annuity for his service as a
10fireman computed by multiplying 2.5% for each year of such
11service by his or her final average salary.
12    The retirement annuity of a fireman who is retiring after
13attaining age 50 with 10 or more years of creditable service
14shall be reduced by one-half of 1% for each month that the
15fireman's age is under age 55.
16    The maximum retirement annuity under this subsection (b)
17shall be 75% of final average salary.
18    For the purposes of this subsection (b), "final average
19salary" means the average monthly salary obtained by dividing
20the total salary of the fireman during the 96 consecutive
21months of service within the last 120 months of service in
22which the total salary was the highest by the number of months
23of service in that period.
24    Beginning on January 1, 2011, for all purposes under this
25Code (including without limitation the calculation of benefits
26and employee contributions), the annual salary based on the

 

 

09700SB1672ham002- 30 -LRB097 07602 JDS 55801 a

1plan year of a member or participant to whom this Section
2applies shall not exceed $106,800; however, that amount shall
3annually thereafter be increased by the lesser of (i) 3% of
4that amount, including all previous adjustments, or (ii)
5one-half the annual unadjusted percentage increase (but not
6less than zero) in the consumer price index-u for the 12 months
7ending with the September preceding each November 1, including
8all previous adjustments.
9    (c) Notwithstanding any other provision of this Article,
10for a person who first becomes a fireman under this Article on
11or after January 1, 2011, the annuity to which the surviving
12spouse, children, or parents are entitled under this subsection
13(c) shall be in the amount of 66 2/3% of the fireman's earned
14pension at the date of death, subject to the limitations set
15forth in Sections 6-148 and 6-149, as applicable.
16    Notwithstanding any other provision of this Article, the
17monthly annuity of a survivor of a person who first becomes a
18fireman under this Article on or after January 1, 2011 shall be
19increased on the January 1 after attainment of age 60 by the
20recipient of the survivor's pension and each January 1
21thereafter by 3% or one-half the annual unadjusted percentage
22increase in the consumer price index-u for the 12 months ending
23with September preceding each November 1, whichever is less, of
24the originally granted survivor's annuity. If the annual
25unadjusted percentage change in the consumer price index-u for
26a 12-month period ending in September is zero or, when compared

 

 

09700SB1672ham002- 31 -LRB097 07602 JDS 55801 a

1with the preceding period, decreases, then the annuity shall
2not be increased.
3(Source: P.A. 96-1495, eff. 1-1-11.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".