Full Text of SB2826 96th General Assembly
SB2826sam001 96TH GENERAL ASSEMBLY
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Sen. Pamela J. Althoff
Filed: 3/30/2010
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| AMENDMENT TO SENATE BILL 2826
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| AMENDMENT NO. ______. Amend Senate Bill 2826 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Pension Code is amended by | 5 |
| changing Sections 3-125, 3-142, and 4-118 and by adding | 6 |
| Sections 3-125.3 and 4-118.3 as follows: | 7 |
| (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125) | 8 |
| Sec. 3-125. Financing. Except as provided in Section | 9 |
| 3-125.3, the The city council or the board of trustees of
the | 10 |
| municipality shall annually levy a tax upon all
the taxable | 11 |
| property of the municipality at the rate on the dollar which
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| will produce an amount which, when added to the deductions from | 13 |
| the salaries
or wages of police officers, and revenues
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| available from other
sources, will equal a sum sufficient to | 15 |
| meet
the annual requirements of the police pension fund. The | 16 |
| annual
requirements to be provided by such tax levy are equal
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| to (1) the normal cost of the pension fund for the year | 2 |
| involved, plus
(2) the amount necessary to amortize the fund's | 3 |
| unfunded accrued liabilities
as provided in Section 3-127. The | 4 |
| tax shall be levied and
collected in the same manner as the | 5 |
| general taxes
of the municipality, and in addition to all other | 6 |
| taxes now or hereafter authorized to
be levied upon all | 7 |
| property within the municipality, and shall be in
addition to | 8 |
| the amount authorized to be levied for general purposes as
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| provided by Section 8-3-1 of the Illinois Municipal Code, | 10 |
| approved May
29, 1961, as amended. The tax shall be forwarded | 11 |
| directly to the treasurer of the board within 30 business days | 12 |
| after receipt by the county.
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| The police pension fund shall consist of the following | 14 |
| moneys which
shall be set apart by the treasurer of the | 15 |
| municipality: | 16 |
| (1) All moneys derived from the taxes levied hereunder; | 17 |
| (2) Contributions by police officers under Section | 18 |
| 3-125.1; | 19 |
| (3) All moneys accumulated by the municipality under | 20 |
| any previous
legislation establishing a fund for the | 21 |
| benefit of disabled or retired
police officers; | 22 |
| (4) Donations, gifts or other transfers authorized by | 23 |
| this
Article. | 24 |
| (Source: P.A. 95-530, eff. 8-28-07.) | 25 |
| (40 ILCS 5/3-125.3 new) |
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| Sec. 3-125.3. Temporary municipal budget relief. | 2 |
| (a) In 2010 and in 2011, the municipality is required to | 3 |
| make an annual contribution in an amount that is the lesser of: | 4 |
| (1) an amount that, when added to the deductions from | 5 |
| the salaries or wages of police officers and revenues | 6 |
| available from other sources, will equal a sum sufficient | 7 |
| to meet the annual requirements of the police pension fund; | 8 |
| or | 9 |
| (2) the 2008 annual contribution multiplied by 1.1. | 10 |
| (b) For the purpose of this Section, "the 2008 annual | 11 |
| contribution" means the actual amount contributed to the police | 12 |
| pension fund by the municipality in 2008 from property taxes | 13 |
| under Section 3-125 or from any other municipal revenue. | 14 |
| (c) This Section applies notwithstanding any provision of | 15 |
| Section 3-125. | 16 |
| (40 ILCS 5/3-142) (from Ch. 108 1/2, par. 3-142) | 17 |
| Sec. 3-142. Payment of benefits - funds insufficient. Any | 18 |
| police officer and any eligible surviving spouse, child or | 19 |
| children,
or dependent parent
of the officer to whom the
board | 20 |
| has ordered benefits to be paid, shall receive a yearly benefit
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| payable in 12 equal monthly installments, which shall be the | 22 |
| aggregate
amount to which they are entitled. | 23 |
| If at any time there is not sufficient money
in the fund to | 24 |
| pay the
benefits under this Article
the city council or board | 25 |
| of
trustees of the municipality shall make every legal effort |
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| to
replenish the fund so that all beneficiaries may receive the | 2 |
| amounts to
which they are entitled. If, thereafter,
there still | 3 |
| remain insufficient funds,
the beneficiaries shall be paid pro | 4 |
| rata from the
available funds, but no allowance or order of the | 5 |
| board shall be held to
create any liability against the | 6 |
| municipality, but only against the
pension fund. | 7 |
| (Source: P.A. 83-1440.) | 8 |
| (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118) | 9 |
| Sec. 4-118. Financing. | 10 |
| (a) Except as provided in Section 4-118.3, the The city | 11 |
| council or the board of trustees
of the municipality shall | 12 |
| annually levy a tax upon all the taxable property
of the | 13 |
| municipality at the rate on the dollar which will produce an | 14 |
| amount
which, when added to the deductions from the salaries or | 15 |
| wages of
firefighters and revenues available from other | 16 |
| sources, will equal a sum
sufficient to meet the annual | 17 |
| actuarial requirements of the pension fund,
as determined by an | 18 |
| enrolled actuary employed by the Illinois Department of
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| Insurance or by an enrolled actuary retained by the pension | 20 |
| fund or
municipality. For the purposes of this Section, the | 21 |
| annual actuarial
requirements of the pension fund are equal to | 22 |
| (1) the normal cost of the
pension fund, or 17.5% of the | 23 |
| salaries and wages to be paid to firefighters
for the year | 24 |
| involved, whichever is greater, plus (2) the annual amount
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| necessary to amortize the fund's unfunded accrued liabilities |
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| over a period
of 40 years from July 1, 1993, as annually | 2 |
| updated and determined by an
enrolled actuary employed by the | 3 |
| Illinois Department of Insurance or by an
enrolled actuary | 4 |
| retained by the pension fund or the municipality. The amount
to | 5 |
| be applied towards the amortization of the unfunded accrued | 6 |
| liability in any
year shall not be less than the annual amount | 7 |
| required to amortize the unfunded
accrued liability, including | 8 |
| interest, as a level percentage of payroll over
the number of | 9 |
| years remaining in the 40 year amortization period. | 10 |
| (b) The tax shall be levied and collected in the same | 11 |
| manner
as the general taxes of the municipality, and shall be | 12 |
| in addition
to all other taxes now or hereafter authorized to | 13 |
| be levied upon all
property within the municipality, and in | 14 |
| addition to the amount authorized
to be levied for general | 15 |
| purposes, under Section 8-3-1 of the Illinois
Municipal Code or | 16 |
| under Section 14 of the Fire Protection District Act. The
tax | 17 |
| shall be forwarded directly to the treasurer of the board | 18 |
| within 30
business days of receipt by the county
(or, in the | 19 |
| case of amounts
added to the tax levy under subsection (f), | 20 |
| used by the municipality to pay the
employer contributions | 21 |
| required under subsection (b-1) of Section 15-155 of
this | 22 |
| Code). | 23 |
| (c) The board shall make available to the membership and | 24 |
| the general public
for inspection and copying at reasonable | 25 |
| times the most recent Actuarial
Valuation Balance Sheet and Tax | 26 |
| Levy Requirement issued to the fund by the
Department of |
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| Insurance. | 2 |
| (d) The firefighters' pension fund shall consist of the | 3 |
| following moneys
which shall be set apart by the treasurer of | 4 |
| the municipality: (1) all
moneys derived from the taxes levied | 5 |
| hereunder; (2) contributions
by firefighters as provided under | 6 |
| Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 7 |
| emoluments that may be paid or given
for or on account of | 8 |
| extraordinary service by the fire department or any
member | 9 |
| thereof, except when allowed to be retained by competitive | 10 |
| awards;
and (4) any money, real estate or personal property | 11 |
| received by the board. | 12 |
| (e) For the purposes of this Section, "enrolled actuary" | 13 |
| means an actuary:
(1) who is a member of the Society of | 14 |
| Actuaries or the American
Academy of Actuaries; and (2) who is | 15 |
| enrolled under Subtitle
C of Title III of the Employee | 16 |
| Retirement Income Security Act of 1974, or
who has been engaged | 17 |
| 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 | 19 |
| 1, 1983. | 20 |
| (f) The corporate authorities of a municipality that | 21 |
| employs a person
who is described in subdivision (d) of Section | 22 |
| 4-106 may add to the tax levy
otherwise provided for in this | 23 |
| Section an amount equal to the projected cost of
the employer | 24 |
| contributions required to be paid by the municipality to the | 25 |
| State
Universities Retirement System under subsection (b-1) of | 26 |
| Section 15-155 of this
Code. |
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| (Source: P.A. 94-859, eff. 6-15-06.) | 2 |
| (40 ILCS 5/4-118.3 new) | 3 |
| Sec. 4-118.3.
Temporary municipal budget relief. | 4 |
| (a) In 2010 and in 2011, the municipality is required to | 5 |
| make an annual contribution in an amount that is the lesser of: | 6 |
| (1) an amount that, when added to the deductions from | 7 |
| the salaries or wages of firefighters and revenues | 8 |
| available from other sources, will equal a sum sufficient | 9 |
| to meet the annual requirements of the firefighters' | 10 |
| pension fund; or | 11 |
| (2) the 2008 annual contribution multiplied by 1.1. | 12 |
| (b) For the purpose of this Section, "the 2008 annual | 13 |
| contribution" means the actual amount contributed to the | 14 |
| firefighters' pension fund by the municipality in 2008 from | 15 |
| property taxes under Section 4-118 or from any other municipal | 16 |
| revenue. | 17 |
| (c) This Section applies notwithstanding any provision of | 18 |
| Section 4-118.
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| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.".
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