Full Text of SB1974 95th General Assembly
SB1974 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1974
Introduced 2/7/2008, by Sen. David Koehler SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/4-118 |
from Ch. 108 1/2, par. 4-118 |
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Amends the Downstate Firefighter Article of the Illinois Pension Code. In provisions concerning financing of funds through taxes, provides that the annual actuarial
requirements of the pension fund are equal to (1) the normal cost of the
pension fund, or 17.5% of the salaries and wages to be paid to firefighters
for the year involved, whichever is greater, plus (2) the annual amount
necessary to amortize the fund's unfunded accrued liabilities over a period
of 40 years from the date it is determined to be unfunded by the Division of Insurance of the Department of Financial and Professional Regulation, by an
enrolled actuary employed by the Division of Insurance, or by an
enrolled actuary retained by the pension fund or the municipality (was, from July 1, 1993). Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
| STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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A BILL FOR
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SB1974 |
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LRB095 18674 AMC 44768 b |
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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 |
| Section 4-118 as follows:
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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 | 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 the Division | 16 |
| of Insurance of the Department of Financial and Professional | 17 |
| Regulation Illinois Department of
Insurance or by an enrolled | 18 |
| actuary retained by the pension fund or
municipality. For the | 19 |
| purposes of this Section, the annual actuarial
requirements of | 20 |
| the pension fund are equal to (1) the normal cost of the
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| pension fund, or 17.5% of the salaries and wages to be paid to | 22 |
| firefighters
for the year involved, whichever is greater, plus | 23 |
| (2) the annual amount
necessary to amortize the fund's unfunded |
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SB1974 |
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LRB095 18674 AMC 44768 b |
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| accrued liabilities over a period
of 40 years from the date it | 2 |
| is determined to be unfunded by the Division of Insurance, July | 3 |
| 1, 1993, as annually updated and determined by an
enrolled | 4 |
| actuary employed by the Division of Insurance, Illinois | 5 |
| Department of Insurance or by an
enrolled actuary retained by | 6 |
| the pension fund or the municipality. The amount
to be applied | 7 |
| towards the amortization of the unfunded accrued liability in | 8 |
| any
year shall not be less than the annual amount required to | 9 |
| amortize the unfunded
accrued liability, including interest, | 10 |
| as a level percentage of payroll over
the number of years | 11 |
| remaining in the 40 year amortization period.
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| (b) The tax shall be levied and collected in the same | 13 |
| manner
as the general taxes of the municipality, and shall be | 14 |
| in addition
to all other taxes now or hereafter authorized to | 15 |
| be levied upon all
property within the municipality, and in | 16 |
| addition to the amount authorized
to be levied for general | 17 |
| purposes, under Section 8-3-1 of the Illinois
Municipal Code or | 18 |
| under Section 14 of the Fire Protection District Act. The
tax | 19 |
| shall be forwarded directly to the treasurer of the board | 20 |
| within 30
business days of receipt by the county
(or, in the | 21 |
| case of amounts
added to the tax levy under subsection (f), | 22 |
| used by the municipality to pay the
employer contributions | 23 |
| required under subsection (b-1) of Section 15-155 of
this | 24 |
| Code).
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| (c) The board shall make available to the membership and | 26 |
| the general public
for inspection and copying at reasonable |
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SB1974 |
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LRB095 18674 AMC 44768 b |
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| times the most recent Actuarial
Valuation Balance Sheet and Tax | 2 |
| Levy Requirement issued to the fund by the
Division of | 3 |
| Insurance Department of Insurance .
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| (d) The firefighters' pension fund shall consist of the | 5 |
| following moneys
which shall be set apart by the treasurer of | 6 |
| the municipality: (1) all
moneys derived from the taxes levied | 7 |
| hereunder; (2) contributions
by firefighters as provided under | 8 |
| Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 9 |
| emoluments that may be paid or given
for or on account of | 10 |
| extraordinary service by the fire department or any
member | 11 |
| thereof, except when allowed to be retained by competitive | 12 |
| awards;
and (4) any money, real estate or personal property | 13 |
| received by the board.
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| (e) For the purposes of this Section, "enrolled actuary" | 15 |
| means an actuary:
(1) who is a member of the Society of | 16 |
| Actuaries or the American
Academy of Actuaries; and (2) who is | 17 |
| enrolled under Subtitle
C of Title III of the Employee | 18 |
| Retirement Income Security Act of 1974, or
who has been engaged | 19 |
| 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 | 21 |
| 1, 1983.
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| (f) The corporate authorities of a municipality that | 23 |
| employs a person
who is described in subdivision (d) of Section | 24 |
| 4-106 may add to the tax levy
otherwise provided for in this | 25 |
| Section an amount equal to the projected cost of
the employer | 26 |
| contributions required to be paid by the municipality to the |
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SB1974 |
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LRB095 18674 AMC 44768 b |
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| State
Universities Retirement System under subsection (b-1) of | 2 |
| 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 | 5 |
| becoming law.
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