Full Text of SB2011 96th General Assembly
SB2011eng 96TH GENERAL ASSEMBLY
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SB2011 Engrossed |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 3-127 and 4-118 as follows:
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| (40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127)
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| Sec. 3-127. Reserves. The board shall establish and | 8 |
| maintain a reserve
to insure the payment of all obligations | 9 |
| incurred under this Article
excluding retirement annuities | 10 |
| established under Section 3-109.3. The
reserve to be | 11 |
| accumulated shall be equal to the estimated total actuarial
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| requirements of the fund.
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| If a pension fund has a reserve of less than the accrued | 14 |
| liabilities of
the fund, the board of the pension fund, in | 15 |
| making its annual report to the
city council or board of | 16 |
| trustees of the municipality, shall designate the
amount, | 17 |
| calculated as a level percentage of payroll, needed annually to
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| insure the accumulation of the reserve to the level of the | 19 |
| fund's accrued
liabilities over a period of 40 years from July | 20 |
| 1, 2009 1993 for pension funds then
in operation, or from the | 21 |
| date of establishment in the case of a fund created
thereafter, | 22 |
| so that the necessary reserves will be attained over such a | 23 |
| period.
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| (Source: P.A. 91-939, eff. 2-1-01.)
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| (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
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| Sec. 4-118. Financing.
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| (a) The city council or the board of trustees
of the | 5 |
| municipality shall annually levy a tax upon all the taxable | 6 |
| property
of the municipality at the rate on the dollar which | 7 |
| will produce an amount
which, when added to the deductions from | 8 |
| the salaries or wages of
firefighters and revenues available | 9 |
| from other sources, will equal a sum
sufficient to meet the | 10 |
| annual actuarial requirements of the pension fund,
as | 11 |
| determined by an enrolled actuary employed by the Illinois | 12 |
| Department of
Insurance or by an enrolled actuary retained by | 13 |
| the pension fund or
municipality. For the purposes of this | 14 |
| Section, the annual actuarial
requirements of the pension fund | 15 |
| are equal to (1) the normal cost of the
pension fund, or 17.5% | 16 |
| of the salaries and wages to be paid to firefighters
for the | 17 |
| year involved, whichever is greater, plus (2) the annual amount
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| necessary to amortize the fund's unfunded accrued liabilities | 19 |
| over a period
of 40 years from July 1, 2009 1993 , as annually | 20 |
| updated and determined by an
enrolled actuary employed by the | 21 |
| Illinois Department of Insurance or by an
enrolled actuary | 22 |
| retained by the pension fund or the municipality. The amount
to | 23 |
| be applied towards the amortization of the unfunded accrued | 24 |
| liability in any
year shall not be less than the annual amount | 25 |
| required to amortize the unfunded
accrued liability, including |
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| interest, as a level percentage of payroll over
the number of | 2 |
| years remaining in the 40 year amortization period.
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| (b) The tax shall be levied and collected in the same | 4 |
| manner
as the general taxes of the municipality, and shall be | 5 |
| in addition
to all other taxes now or hereafter authorized to | 6 |
| be levied upon all
property within the municipality, and in | 7 |
| addition to the amount authorized
to be levied for general | 8 |
| purposes, under Section 8-3-1 of the Illinois
Municipal Code or | 9 |
| under Section 14 of the Fire Protection District Act. The
tax | 10 |
| shall be forwarded directly to the treasurer of the board | 11 |
| within 30
business days of receipt by the county
(or, in the | 12 |
| case of amounts
added to the tax levy under subsection (f), | 13 |
| used by the municipality to pay the
employer contributions | 14 |
| required under subsection (b-1) of Section 15-155 of
this | 15 |
| Code).
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| (c) The board shall make available to the membership and | 17 |
| the general public
for inspection and copying at reasonable | 18 |
| times the most recent Actuarial
Valuation Balance Sheet and Tax | 19 |
| Levy Requirement issued to the fund by the
Department of | 20 |
| Insurance.
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| (d) The firefighters' pension fund shall consist of the | 22 |
| following moneys
which shall be set apart by the treasurer of | 23 |
| the municipality: (1) all
moneys derived from the taxes levied | 24 |
| hereunder; (2) contributions
by firefighters as provided under | 25 |
| Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 26 |
| emoluments that may be paid or given
for or on account of |
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| extraordinary service by the fire department or any
member | 2 |
| thereof, except when allowed to be retained by competitive | 3 |
| awards;
and (4) any money, real estate or personal property | 4 |
| received by the board.
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| (e) For the purposes of this Section, "enrolled actuary" | 6 |
| means an actuary:
(1) who is a member of the Society of | 7 |
| Actuaries or the American
Academy of Actuaries; and (2) who is | 8 |
| enrolled under Subtitle
C of Title III of the Employee | 9 |
| Retirement Income Security Act of 1974, or
who has been engaged | 10 |
| in providing actuarial services to one or more public
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| retirement systems for a period of at least 3 years as of July | 12 |
| 1, 1983.
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| (f) The corporate authorities of a municipality that | 14 |
| employs a person
who is described in subdivision (d) of Section | 15 |
| 4-106 may add to the tax levy
otherwise provided for in this | 16 |
| Section an amount equal to the projected cost of
the employer | 17 |
| contributions required to be paid by the municipality to the | 18 |
| State
Universities Retirement System under subsection (b-1) of | 19 |
| Section 15-155 of this
Code.
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| (Source: P.A. 94-859, eff. 6-15-06.)
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| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.
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