Illinois General Assembly - Full Text of SB2740
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Full Text of SB2740  94th General Assembly



SB2740 Enrolled LRB094 17355 AMC 52650 b

1     AN ACT concerning public employee benefits.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 4-118 as follows:
6     (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
7     Sec. 4-118. Financing.
8     (a) The city council or the board of trustees of the
9 municipality shall annually levy a tax upon all the taxable
10 property of the municipality at the rate on the dollar which
11 will produce an amount which, when added to the deductions from
12 the salaries or wages of firefighters and revenues available
13 from other sources, will equal a sum sufficient to meet the
14 annual actuarial requirements of the pension fund, as
15 determined by an enrolled actuary employed by the Illinois
16 Department of Insurance or by an enrolled actuary retained by
17 the pension fund or municipality. For the purposes of this
18 Section, the annual actuarial requirements of the pension fund
19 are equal to (1) the normal cost of the pension fund, or 17.5%
20 of the salaries and wages to be paid to firefighters for the
21 year involved, whichever is greater, plus (2) the annual amount
22 necessary to amortize the fund's unfunded accrued liabilities
23 over a period of 40 years from July 1, 1993, as annually
24 updated and determined by an enrolled actuary employed by the
25 Illinois Department of Insurance or by an enrolled actuary
26 retained by the pension fund or the municipality. The amount to
27 be applied towards the amortization of the unfunded accrued
28 liability in any year shall not be less than the annual amount
29 required to amortize the unfunded accrued liability, including
30 interest, as a level percentage of payroll over the number of
31 years remaining in the 40 year amortization period.
32     (b) The tax shall be levied and collected in the same



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1 manner as the general taxes of the municipality, and shall be
2 in addition to all other taxes now or hereafter authorized to
3 be levied upon all property within the municipality, and in
4 addition to the amount authorized to be levied for general
5 purposes, under Section 8-3-1 of the Illinois Municipal Code or
6 under Section 14 of the Fire Protection District Act. The tax
7 shall be forwarded directly to the treasurer of the board
8 within 30 business days of receipt by the county municipality
9 (or, in the case of amounts added to the tax levy under
10 subsection (f), used by the municipality to pay the employer
11 contributions required under subsection (b-1) of Section
12 15-155 of this Code).
13     (c) The board shall make available to the membership and
14 the general public for inspection and copying at reasonable
15 times the most recent Actuarial Valuation Balance Sheet and Tax
16 Levy Requirement issued to the fund by the Department of
17 Insurance.
18     (d) The firefighters' pension fund shall consist of the
19 following moneys which shall be set apart by the treasurer of
20 the municipality: (1) all moneys derived from the taxes levied
21 hereunder; (2) contributions by firefighters as provided under
22 Section 4-118.1; (3) all rewards in money, fees, gifts, and
23 emoluments that may be paid or given for or on account of
24 extraordinary service by the fire department or any member
25 thereof, except when allowed to be retained by competitive
26 awards; and (4) any money, real estate or personal property
27 received by the board.
28     (e) For the purposes of this Section, "enrolled actuary"
29 means an actuary: (1) who is a member of the Society of
30 Actuaries or the American Academy of Actuaries; and (2) who is
31 enrolled under Subtitle C of Title III of the Employee
32 Retirement Income Security Act of 1974, or who has been engaged
33 in providing actuarial services to one or more public
34 retirement systems for a period of at least 3 years as of July
35 1, 1983.
36     (f) The corporate authorities of a municipality that



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1 employs a person who is described in subdivision (d) of Section
2 4-106 may add to the tax levy otherwise provided for in this
3 Section an amount equal to the projected cost of the employer
4 contributions required to be paid by the municipality to the
5 State Universities Retirement System under subsection (b-1) of
6 Section 15-155 of this Code.
7 (Source: P.A. 90-576, eff. 3-31-98.)
8     Section 99. Effective date. This Act takes effect upon
9 becoming law.