Full Text of SB1672 97th General Assembly
SB1672ham002 97TH GENERAL ASSEMBLY | Rep. Kevin A. McCarthy Filed: 5/18/2011
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| 1 | | AMENDMENT TO SENATE BILL 1672
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1672, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Pension Code is amended by | 6 | | changing Section 1-118, 3-125, 4-118, 5-168, 5-238, 6-165, | 7 | | 6-211, 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 | 11 | | this Code shall comply with the requirements imposed on them by | 12 | | the
federal Uniformed Services Employment and Reemployment | 13 | | Rights Act (P.L.
103-353).
| 14 | | (b) All pension funds and retirement systems subject to | 15 | | this Code shall comply with the federal Heroes Earnings | 16 | | Assistance 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 | 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 police officers, and revenues
| 9 | | available from other
sources, will equal a sum sufficient to | 10 | | meet
the annual requirements of the police pension fund. The | 11 | | annual
requirements to be provided by such tax levy are equal
| 12 | | to (1) the normal cost of the pension fund for the year | 13 | | involved, plus
(2) an amount sufficient to bring the total | 14 | | assets of the pension fund up to 90% of the total actuarial | 15 | | liabilities of the pension fund by the end of municipal fiscal | 16 | | year 2040, as annually updated and determined by an enrolled | 17 | | actuary employed by the Illinois Department of Insurance or by | 18 | | an enrolled actuary retained by the pension fund or the | 19 | | municipality. In making these determinations, the required | 20 | | minimum employer contribution shall be calculated each year as | 21 | | a level percentage of payroll over the years remaining up to | 22 | | and including fiscal year 2040 and shall be determined under | 23 | | the projected unit credit actuarial cost method . The tax shall | 24 | | be levied and
collected in the same manner as the general taxes
| 25 | | of the municipality, and in addition to all other taxes now or |
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| 1 | | hereafter authorized to
be levied upon all property within the | 2 | | municipality, and shall be in
addition to the amount authorized | 3 | | to be levied for general purposes as
provided by Section 8-3-1 | 4 | | of the Illinois Municipal Code, approved May
29, 1961, as | 5 | | amended. The tax shall be forwarded directly to the treasurer | 6 | | of the board within 30 business days after receipt by the | 7 | | county.
| 8 | | (b) For purposes of determining the required employer | 9 | | contribution to a pension fund, the value of the pension fund's | 10 | | assets shall be equal to the actuarial value of the pension | 11 | | fund'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 | 21 | | the fund contributions required of it under this Article for | 22 | | more than 90 days after the payment of those contributions is | 23 | | due, the fund may, after giving notice to the municipality, | 24 | | certify to the State Comptroller the amounts of the delinquent | 25 | | payments, and the Comptroller must, beginning in fiscal year | 26 | | 2016, deduct and deposit into the fund the certified amounts or |
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| 1 | | a portion of those amounts from the following proportions of | 2 | | grants 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 | 11 | | State funds to the municipality more than the amount of | 12 | | delinquent payments certified to the State Comptroller by the | 13 | | fund. | 14 | | (d) The police pension fund shall consist of the following | 15 | | moneys which
shall be set apart by the treasurer of the | 16 | | municipality:
| 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
| 26 | | Accountability shall conduct a study of all funds established
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| 1 | | under this Article and shall report its findings to the General
| 2 | | Assembly on or before January 1, 2013. To the fullest extent | 3 | | possible, the study shall include, but not be limited to, the | 4 | | following: | 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 | 21 | | municipality shall annually levy a tax upon all the taxable | 22 | | property
of the municipality at the rate on the dollar which | 23 | | will produce an amount
which, when added to the deductions from | 24 | | the salaries or wages of
firefighters and revenues available | 25 | | from other sources, will equal a sum
sufficient to meet the |
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| 1 | | annual actuarial requirements of the pension fund,
as | 2 | | determined by an enrolled actuary employed by the Illinois | 3 | | Department of
Insurance or by an enrolled actuary retained by | 4 | | the pension fund or
municipality. For the purposes of this | 5 | | Section, the annual actuarial
requirements of the pension fund | 6 | | are equal to (1) the normal cost of the
pension fund, or 17.5% | 7 | | of the salaries and wages to be paid to firefighters
for the | 8 | | year involved, whichever is greater, plus (2) an annual amount
| 9 | | sufficient to bring the total assets of the pension fund up to | 10 | | 90% of the total actuarial liabilities of the pension fund by | 11 | | the end of municipal fiscal year 2040, as annually updated and | 12 | | determined by an enrolled actuary employed by the Illinois | 13 | | Department of Insurance or by an enrolled actuary retained by | 14 | | the pension fund or the municipality. In making these | 15 | | determinations, the required minimum employer contribution | 16 | | shall be calculated each year as a level percentage of payroll | 17 | | over the years remaining up to and including fiscal year 2040 | 18 | | and shall be determined under the projected unit credit | 19 | | actuarial cost method . The amount
to be applied towards the | 20 | | amortization of the unfunded accrued liability in any
year | 21 | | shall not be less than the annual amount required to amortize | 22 | | the unfunded
accrued liability, including interest, as a level | 23 | | percentage of payroll over
the number of years remaining in the | 24 | | 40 year amortization period.
| 25 | | (a-5) For purposes of determining the required employer | 26 | | contribution to a pension fund, the value of the pension fund's |
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| 1 | | assets shall be equal to the actuarial value of the pension | 2 | | fund'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 | 12 | | manner
as the general taxes of the municipality, and shall be | 13 | | in addition
to all other taxes now or hereafter authorized to | 14 | | be levied upon all
property within the municipality, and in | 15 | | addition to the amount authorized
to be levied for general | 16 | | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | 17 | | under Section 14 of the Fire Protection District Act. The
tax | 18 | | shall be forwarded directly to the treasurer of the board | 19 | | within 30
business days of receipt by the county
(or, in the | 20 | | case of amounts
added to the tax levy under subsection (f), | 21 | | used by the municipality to pay the
employer contributions | 22 | | required under subsection (b-1) of Section 15-155 of
this | 23 | | Code).
| 24 | | (b-5) If a participating municipality fails to transmit to | 25 | | the fund contributions required of it under this Article for | 26 | | more than 90 days after the payment of those contributions is |
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| 1 | | due, the fund may, after giving notice to the municipality, | 2 | | certify to the State Comptroller the amounts of the delinquent | 3 | | payments, and the Comptroller must, beginning in fiscal year | 4 | | 2016, deduct and deposit into the fund the certified amounts or | 5 | | a portion of those amounts from the following proportions of | 6 | | grants 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 | 15 | | State funds to the municipality more than the amount of | 16 | | delinquent payments certified to the State Comptroller by the | 17 | | fund. | 18 | | (c) The board shall make available to the membership and | 19 | | the general public
for inspection and copying at reasonable | 20 | | times the most recent Actuarial
Valuation Balance Sheet and Tax | 21 | | Levy Requirement issued to the fund by the
Department of | 22 | | Insurance.
| 23 | | (d) The firefighters' pension fund shall consist of the | 24 | | following moneys
which shall be set apart by the treasurer of | 25 | | the municipality: (1) all
moneys derived from the taxes levied | 26 | | hereunder; (2) contributions
by firefighters as provided under |
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| 1 | | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 2 | | emoluments that may be paid or given
for or on account of | 3 | | extraordinary service by the fire department or any
member | 4 | | thereof, except when allowed to be retained by competitive | 5 | | awards;
and (4) any money, real estate or personal property | 6 | | received by the board.
| 7 | | (e) For the purposes of this Section, "enrolled actuary" | 8 | | means an actuary:
(1) who is a member of the Society of | 9 | | Actuaries or the American
Academy of Actuaries; and (2) who is | 10 | | enrolled under Subtitle
C of Title III of the Employee | 11 | | Retirement Income Security Act of 1974, or
who has been engaged | 12 | | in providing actuarial services to one or more public
| 13 | | retirement systems for a period of at least 3 years as of July | 14 | | 1, 1983.
| 15 | | (f) The corporate authorities of a municipality that | 16 | | employs a person
who is described in subdivision (d) of Section | 17 | | 4-106 may add to the tax levy
otherwise provided for in this | 18 | | Section an amount equal to the projected cost of
the employer | 19 | | contributions required to be paid by the municipality to the | 20 | | State
Universities Retirement System under subsection (b-1) of | 21 | | Section 15-155 of this
Code. | 22 | | (g) The Commission on Government Forecasting and
| 23 | | Accountability shall conduct a study of all funds established
| 24 | | under this Article and shall report its findings to the General
| 25 | | Assembly on or before January 1, 2013. To the fullest extent | 26 | | possible, the study shall include, but not be limited to, the |
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| 1 | | following: | 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 | 18 | | shall levy a
tax annually upon all taxable property therein for | 19 | | the purpose of providing
revenue for the fund.
| 20 | | The tax shall be at a rate that will produce a sum which, | 21 | | when added to the
amounts deducted from the policemen's | 22 | | salaries and the amounts deposited in
accordance with | 23 | | subsection (g), is sufficient for the purposes of the fund.
| 24 | | For the years 1968 and 1969, the city council shall levy a | 25 | | tax
annually at a rate on the dollar of the assessed
valuation |
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| 1 | | of all taxable property that will produce, when extended, not
| 2 | | to exceed $9,700,000. Beginning with the year 1970 and through | 3 | | 2014, the city council shall levy a tax annually at a rate on | 4 | | the
dollar of the assessed valuation of all taxable property | 5 | | that will
produce when extended an amount not to exceed the | 6 | | total amount of
contributions by the policemen to the Fund made | 7 | | in the calendar year 2
years before the year for which the | 8 | | applicable annual tax is levied,
multiplied by 1.40 for the tax | 9 | | levy year 1970; by 1.50 for the year
1971; by 1.65 for 1972; by | 10 | | 1.85 for 1973; by 1.90 for 1974; by 1.97 for
1975 through 1981; | 11 | | by 2.00 for 1982 and for each year through 2014. Beginning in | 12 | | 2015, the city council shall levy a tax annually at a rate on | 13 | | the dollar of the assessed valuation of all taxable property | 14 | | that will produce when extended an annual amount that is equal | 15 | | to (1) the net employer normal cost to the Fund, plus (2) an | 16 | | annual amount sufficient to bring the total assets of the Fund | 17 | | up to 90% of the total actuarial liabilities of the Fund by the | 18 | | end of fiscal year 2040, as annually updated and determined by | 19 | | an enrolled actuary employed by the Illinois Department of | 20 | | Insurance or by an enrolled actuary retained by the Fund or the | 21 | | city. In making these determinations, the required minimum | 22 | | employer contribution shall be calculated each year as a level | 23 | | percentage of payroll over the years remaining up to and | 24 | | including fiscal year 2040 and in no event should be less than | 25 | | the net employer normal cost shall be determined under the | 26 | | projected unit credit actuarial cost method . For the purposes |
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| 1 | | of this subsection (a), contributions by the policeman to the | 2 | | Fund shall not include payments made by a policeman to | 3 | | establish credit under Section 5-214.2 of this Code.
| 4 | | (a-5) For purposes of determining the required employer | 5 | | contribution to the Fund, the value of the Fund's assets shall | 6 | | be equal to the actuarial value of the Fund's assets, which | 7 | | shall 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 | 18 | | contributions required of it under this Article for more than | 19 | | 90 days after the last day of the Fund's fiscal year in which | 20 | | those contributions are payment of those contributions is due, | 21 | | the Fund shall may , after giving notice to the city, certify to | 22 | | the State Comptroller the amounts of the delinquent payments, | 23 | | and the Comptroller must, beginning in fiscal year 2017 2016 , | 24 | | deduct and deposit into the Fund by the end of each respective | 25 | | fiscal year the certified amounts or a portion of those amounts | 26 | | from the following proportions of grants of State funds to the |
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| 1 | | city: | 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 | 10 | | State funds to the city more than the amount of delinquent | 11 | | payments certified to the State Comptroller by the Fund. | 12 | | (b) The tax shall be levied and collected in like manner | 13 | | with the
general taxes of the city, and is in addition to all | 14 | | other taxes which the
city is now or may hereafter be | 15 | | authorized to levy upon all taxable property
therein, and is | 16 | | exclusive of and in addition to the amount of tax the city is
| 17 | | now or may hereafter be authorized to levy for general purposes | 18 | | under any
law which may limit the amount of tax which the city | 19 | | may levy for general
purposes. The county clerk of the county | 20 | | in which the city is located, in
reducing tax levies under | 21 | | Section 8-3-1 of the Illinois
Municipal Code, shall not | 22 | | consider the tax herein authorized as a part
of the general tax | 23 | | levy for city purposes, and shall not include the tax
in any | 24 | | limitation of the percent of the assessed valuation upon which
| 25 | | taxes 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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| 1 | | notify the
city council of the requirement that the tax herein | 2 | | authorized be levied by
the city council for that current year. | 3 | | The board shall compute the
amounts necessary for the purposes | 4 | | of this fund to be credited to the
reserves established and | 5 | | maintained within the fund; shall make an
annual determination | 6 | | of the amount of the required city contributions;
and shall | 7 | | certify the results thereof to the city council.
| 8 | | As soon as any revenue derived from the tax is collected it | 9 | | shall be
paid to the city treasurer of the city and shall be | 10 | | held by him for the
benefit of the fund in accordance with this | 11 | | Article.
| 12 | | (d) If the funds available are insufficient during any year | 13 | | to meet the
requirements of this Article, the city may issue | 14 | | tax anticipation warrants
against the tax levy for the current | 15 | | fiscal year.
| 16 | | (e) The various sums, including interest, to be contributed | 17 | | by the city,
shall be taken from the revenue derived from such | 18 | | tax or otherwise as expressly
provided in this Section. Any | 19 | | moneys of the city derived from any source other
than the tax | 20 | | herein authorized shall not be used for any purpose of the fund
| 21 | | nor the cost of administration thereof, unless applied to make | 22 | | the deposit
expressly authorized in this Section
or the | 23 | | additional city contributions required under subsection (h).
| 24 | | (f) If it is not possible or practicable for the city to | 25 | | make its
contributions at the time that salary deductions are | 26 | | made, the city
shall make such contributions as soon as |
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| 1 | | possible thereafter, with
interest thereon to the time it is | 2 | | made.
| 3 | | (g) In lieu of levying all or a portion of the tax required | 4 | | under this
Section in any year, the city may deposit with the | 5 | | city treasurer no later than
March 1 of that year for the | 6 | | benefit of the fund, to be held in accordance with
this | 7 | | Article, an amount that, together with the taxes levied under | 8 | | this Section
for that year, is not less than the amount of the | 9 | | city contributions for that
year as certified by the board to | 10 | | the city council. The deposit may be derived
from any source | 11 | | legally available for that purpose, including, but not limited
| 12 | | to, the proceeds of city borrowings. The making of a deposit | 13 | | shall satisfy
fully the requirements of this Section for that | 14 | | year to the extent of the
amounts so deposited. Amounts | 15 | | deposited under this subsection may be used by
the fund for any | 16 | | of the purposes for which the proceeds of the tax levied under
| 17 | | this Section may be used, including the payment of any amount | 18 | | that is otherwise
required by this Article to be paid from the | 19 | | proceeds of that tax.
| 20 | | (h) In addition to the contributions required under the | 21 | | other provisions
of this Article, by November 1 of the | 22 | | following specified years, the city shall
deposit with the city | 23 | | treasurer for the benefit of the fund, to be held and
used in | 24 | | accordance 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 | 2 | | subsection are
intended to decrease the unfunded liability of | 3 | | the fund and shall not decrease
the amount of the city | 4 | | contributions required under the other provisions of
this | 5 | | Article. The additional city contributions made under this | 6 | | subsection
may be used by the fund for any of its lawful | 7 | | purposes.
| 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,
| 12 | | the provisions of this Section apply to a person who first
| 13 | | becomes a policeman under this Article on or after January 1, | 14 | | 2011. | 15 | | (b) A policeman age 55 or more who has 10 or more years of | 16 | | service in that capacity shall be entitled at his option to | 17 | | receive a monthly retirement annuity for his service as a | 18 | | police officer computed by multiplying 2.5% for each year of | 19 | | such service by his or her final average salary. | 20 | | The retirement annuity of a policeman who is retiring after | 21 | | attaining age 50 with 10 or more years of creditable service | 22 | | shall be reduced by one-half of 1% for each month that the | 23 | | police officer's age is under age 55. | 24 | | The maximum retirement annuity under this subsection (b) | 25 | | shall be 75%
of final average salary. |
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| 1 | | For the purposes of this subsection (b), "final average | 2 | | salary" means the average monthly salary obtained by dividing | 3 | | the total salary of the policeman during the 96 consecutive | 4 | | months of service within the last 120 months of service in | 5 | | which the total salary was the highest by the number of months | 6 | | of service in that period. | 7 | | Beginning on January 1, 2011, for all purposes under
this | 8 | | Code (including without limitation the calculation of
benefits | 9 | | and employee contributions), the annual salary
based on the | 10 | | plan year of a member or participant to whom this Section | 11 | | applies shall not exceed $106,800; however, that amount shall | 12 | | annually thereafter be increased by the lesser of (i) 3% of | 13 | | that amount, including all previous adjustments, or (ii) | 14 | | one-half the annual unadjusted percentage increase (but not | 15 | | less than zero) in the consumer price index-u for the 12 months | 16 | | ending with the September preceding each November 1, including | 17 | | all previous adjustments. | 18 | | (c) Notwithstanding any other provision of this Article, | 19 | | for a person who first becomes a policeman under this Article | 20 | | on or after January 1, 2011, the annuity to which the surviving | 21 | | spouse is , children, or parents are entitled under this | 22 | | subsection (c) shall be in the amount of 66 2/3% of the | 23 | | policeman's earned annuity at the date of death. | 24 | | Notwithstanding any other provision of this Article, the | 25 | | monthly annuity
of a survivor of a person who first becomes a | 26 | | policeman under this Article on or after January 1, 2011 shall |
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| 1 | | be increased on the January 1 after attainment of age 60 by the | 2 | | recipient of the survivor's annuity and
each January 1 | 3 | | thereafter by 3% or one-half the annual unadjusted percentage | 4 | | increase (but not less than zero) in the consumer price index-u | 5 | | for the
12 months ending with the September preceding each | 6 | | November 1, whichever is less, of the originally granted | 7 | | survivor's annuity. If the unadjusted percentage change in
the | 8 | | consumer price index-u for a 12-month period ending in | 9 | | September is zero or, when compared with the preceding period, | 10 | | decreases, then the annuity shall not
be increased. | 11 | | For the purposes of this Section, "consumer price index-u" | 12 | | means the index published by the Bureau of Labor Statistics of | 13 | | the United States Department of Labor that measures the average | 14 | | change in prices of goods and services purchased by all urban | 15 | | consumers, United States city average, all items, 1982-84 = | 16 | | 100. The new amount resulting from each annual adjustment shall | 17 | | be determined by the Public Pension Division of the Department | 18 | | of Insurance and made available to the boards of the pension | 19 | | funds.
| 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 | 24 | | shall levy a tax annually upon all
taxable property therein for | 25 | | the purpose of providing revenue for the
fund. For the years |
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| 1 | | prior to the year 1960, the tax rate shall be as
provided for | 2 | | in the "Firemen's Annuity and Benefit Fund of the Illinois
| 3 | | Municipal Code". The tax, from and after January 1, 1968 to and
| 4 | | including the year 1971, shall not exceed .0863% of the value, | 5 | | as
equalized or assessed by the Department of Revenue, of
all | 6 | | taxable property in the city. Beginning with the year 1972 and | 7 | | through 2014, the city shall levy a tax annually at a rate on | 8 | | the
dollar of the value, as equalized or assessed by the | 9 | | Department of Revenue
of all taxable property within such city | 10 | | that will
produce, when extended, not to exceed an amount equal | 11 | | to the total
amount of contributions by the employees to the | 12 | | fund made in the
calendar year 2 years prior to the year for | 13 | | which the annual applicable
tax is levied, multiplied by 2.23 | 14 | | through the calendar year 1981, and by
2.26 for the year 1982 | 15 | | and for each year through 2014. Beginning in 2015, the city | 16 | | council shall levy a tax annually at a rate on the dollar of | 17 | | the assessed valuation of all taxable property that will | 18 | | produce when extended an annual amount that is equal to (1) the | 19 | | normal cost to the Fund, plus (2) an annual amount sufficient | 20 | | to bring the total assets of the Fund up to 90% of the total | 21 | | actuarial liabilities of the Fund by the end of fiscal year | 22 | | 2040, as annually updated and determined by an enrolled actuary | 23 | | employed by the Illinois Department of Insurance or by an | 24 | | enrolled actuary retained by the Fund or the city. In making | 25 | | these determinations, the required minimum employer | 26 | | contribution shall be calculated each year as a level |
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| 1 | | percentage of payroll over the years remaining up to and | 2 | | including fiscal year 2040 and shall be determined under the | 3 | | projected unit credit actuarial cost method .
| 4 | | To provide revenue for the ordinary death benefit | 5 | | established by
Section 6-150 of this Article, in addition to | 6 | | the contributions by the firemen
for this purpose, the city | 7 | | council shall , for the
year 1962 and each subsequent year | 8 | | through 2014, year thereafter annually levy a tax, which shall | 9 | | be
in addition to and exclusive of the taxes authorized to be | 10 | | levied under
the foregoing provisions of this Section, upon all | 11 | | taxable property in
the city, as equalized or assessed by the | 12 | | Department of Revenue, at such
rate per cent of the value of | 13 | | such property as shall be
sufficient to produce for each year | 14 | | the sum of $142,000.
| 15 | | The amounts produced by the taxes levied annually, together | 16 | | with the
deposit expressly authorized in this Section, shall be
| 17 | | sufficient, when added to the amounts deducted from the | 18 | | salaries of
firemen and applied to the fund, to provide for the | 19 | | purposes of the
fund.
| 20 | | (a-5) For purposes of determining the required employer | 21 | | contribution to the Fund, the value of the Fund's assets shall | 22 | | be equal to the actuarial value of the Fund's assets, which | 23 | | shall 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 | 8 | | contributions required of it under this Article for more than | 9 | | 90 days after the last day of the Fund's fiscal year in which | 10 | | those contributions are payment of those contributions is due, | 11 | | the Fund shall may , after giving notice to the city, certify to | 12 | | the State Comptroller the amounts of the delinquent payments, | 13 | | and the Comptroller must, beginning in fiscal year 2017 2016 , | 14 | | deduct and deposit into the Fund the certified amounts or a | 15 | | portion of those amounts from the following proportions of | 16 | | grants 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 | 25 | | State funds to the city more than the amount of delinquent | 26 | | payments certified to the State Comptroller by the Fund. |
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| 1 | | (b) The taxes shall be levied and collected in like manner | 2 | | with the
general taxes of the city, and shall be in addition to | 3 | | all other taxes
which the city may levy upon all taxable | 4 | | property therein and shall be
exclusive of and in addition to | 5 | | the amount of tax the city may levy for
general purposes under | 6 | | Section 8-3-1 of the Illinois Municipal Code,
approved May 29, | 7 | | 1961, as amended, or under any other law or laws which
may | 8 | | limit the amount of tax which the city may levy for general
| 9 | | purposes.
| 10 | | (c) The amounts of the taxes to be levied in each year | 11 | | shall be
certified to the city council by the board.
| 12 | | (d) As soon as any revenue derived from such taxes is | 13 | | collected, it
shall be paid to the city treasurer and held for | 14 | | the benefit of the fund, and
all such revenue shall be paid | 15 | | into the fund in accordance with the
provisions of this | 16 | | Article.
| 17 | | (e) If the funds available are insufficient during any year | 18 | | to
meet the requirements of this Article, the city may issue | 19 | | tax anticipation
warrants, against the tax levies herein | 20 | | authorized for the current
fiscal year.
| 21 | | (f) The various sums, hereinafter stated, including | 22 | | interest, to be
contributed by the city, shall be taken from | 23 | | the revenue derived from the taxes
or otherwise as expressly | 24 | | provided in this Section. Except for defraying the
cost of | 25 | | administration of the fund during the calendar year in which a | 26 | | city
first attains a population of 500,000 and comes under the |
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| 1 | | provisions of this
Article and the first calendar year | 2 | | thereafter, any money of the city derived
from any source other | 3 | | than these taxes or the sale of tax anticipation warrants
shall | 4 | | not be used to provide revenue for the fund, nor to pay any | 5 | | part of the
cost of administration thereof, unless applied to | 6 | | make the deposit expressly
authorized in this Section
or the | 7 | | additional city contributions required under subsection (h).
| 8 | | (g) In lieu of levying all or a portion of the tax required | 9 | | under this
Section in any year, the city may deposit with the | 10 | | city treasurer no later than
March 1 of that year for the | 11 | | benefit of the fund, to be held in accordance with
this | 12 | | Article, an amount that, together with the taxes levied under | 13 | | this Section
for that year, is not less than the amount of the | 14 | | city contributions for that
year as certified by the board to | 15 | | the city council. The deposit may be derived
from any source | 16 | | legally available for that purpose, including, but not limited
| 17 | | to, the proceeds of city borrowings. The making of a deposit | 18 | | shall satisfy
fully the requirements of this Section for that | 19 | | year to the extent of the
amounts so deposited. Amounts | 20 | | deposited under this subsection may be used
by the fund for any | 21 | | of the purposes for which the proceeds of the taxes levied
| 22 | | under this Section may be used, including the payment of any | 23 | | amount that is
otherwise required by this Article to be paid | 24 | | from the proceeds of those
taxes.
| 25 | | (h) In addition to the contributions required under the | 26 | | other provisions
of this Article, by November 1 of the |
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| 1 | | following specified years, the city shall
deposit with the city | 2 | | treasurer for the benefit of the fund, to be held and
used in | 3 | | accordance 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 | 7 | | subsection are
intended to decrease the unfunded liability of | 8 | | the fund and shall not decrease
the amount of the city | 9 | | contributions required under the other provisions of
this | 10 | | Article. The additional city contributions made under this | 11 | | subsection
may be used by the fund for any of its lawful | 12 | | purposes.
| 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 | 16 | | positions above
career service rank.
| 17 | | (a) Except as specified in subsection (b), no annuity, | 18 | | pension or
other benefit shall be paid to a fireman or widow, | 19 | | under this Article, based
upon any salary paid by virtue of a | 20 | | temporary appointment, and all
contributions, annuities and | 21 | | benefits shall be related to the salary which
attaches to the | 22 | | permanent position of the fireman.
| 23 | | Any fireman temporarily serving in a position or rank other | 24 | | than that to
which he has received permanent appointment shall | 25 | | be considered, while so
serving, as though he were in his |
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| 1 | | permanent position or rank, except that no
increase in any | 2 | | pension, annuity or other benefit hereunder shall accrue to
him | 3 | | by virtue of any service performed by him subsequent to | 4 | | attaining the
compulsory retirement age provided by law or | 5 | | ordinance.
| 6 | | This Section does not apply to any person certified to the
| 7 | | fire department by the civil service commission of the city, | 8 | | during the period
of probationary service.
| 9 | | A fireman who holds a position at the will of the Fire | 10 | | Commissioner or other
appointing authority, whether or not such | 11 | | position is an "exempt" position,
shall be deemed to hold a | 12 | | temporary position.
| 13 | | (b) Beginning on the effective date of this amendatory Act | 14 | | of the 93rd
General Assembly, for service in an exempt position | 15 | | above career service rank,
employee contributions shall be | 16 | | based on the actual full salary attached to the
exempt rank | 17 | | position held by the fireman.
| 18 | | For service in an exempt position above career service | 19 | | rank, benefit
computations under this Article shall be based on | 20 | | the actual full salary
attached to the exempt rank position | 21 | | held 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 |
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| 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 | 14 | | amendatory Act of the
93rd General Assembly in an exempt | 15 | | position above career service rank for
which contributions have | 16 | | been paid only on the salary attached to the fireman's
| 17 | | permanent career service rank, a fireman may make the | 18 | | contributions required
under subsection (b) by paying to the | 19 | | Fund before the later of the date of
retirement or 6 months | 20 | | after the effective date of this amendatory Act, but
in no | 21 | | event later than July 1, 2005, an amount equal to the | 22 | | difference between
the employee contributions actually made | 23 | | for that service and the employee
contributions that would have | 24 | | been made based on the actual full salary
attached to the | 25 | | exempt rank position held by the fireman on or after January 1,
| 26 | | 1994, plus interest thereon at the rate of 4% per year, |
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| 1 | | compounded annually,
from the date of the service to the date | 2 | | of payment (or to the date of
retirement if retirement is | 3 | | before the effective date of this amendatory Act).
In the case | 4 | | of a fireman who retired in an exempt rank position after | 5 | | January
1, 1994 and before January 1, 1999 and in the case of a | 6 | | fireman who retired due
to attaining compulsory retirement age | 7 | | before December 1, 2003, the payment
under this subsection (c) | 8 | | shall be for a period of at least 5 years.
| 9 | | If a fireman dies while eligible to make the contributions | 10 | | required under
subsection (b) but before the contributions are | 11 | | paid, the fireman's widow may
elect to make the contributions.
| 12 | | (d) Subsection (e) of Section 6-111 and the changes made to | 13 | | this Section
by this amendatory Act of the 93rd General | 14 | | Assembly apply to a fireman who
retires (or becomes disabled) | 15 | | on or after January 1, 1994. In the case of a
benefit payable | 16 | | on the effective date of this amendatory Act, the resulting
| 17 | | increase in benefit shall begin to accrue with the first | 18 | | benefit payment
period commencing after the required | 19 | | contributions are paid.
| 20 | | (e) If a fireman or his survivors do not qualify to have | 21 | | benefits computed
on the full amount of salary received for | 22 | | service in an exempt position as
provided in subsection (b), | 23 | | benefits shall be computed on the basis of the
salary attached | 24 | | to the permanent career service rank, and a refund of any
| 25 | | employee contributions paid on the difference between the | 26 | | actual salary and
the salary attached to the permanent career |
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| 1 | | service rank shall be payable to
the fireman upon termination | 2 | | of service, or to the fireman's widow or estate
upon the | 3 | | fireman's death.
| 4 | | (f) The tax levy computed under Section 6-165 shall be | 5 | | based on employee
contributions, including the payments of | 6 | | employee contributions under
subsections (a), (b), and (c) of | 7 | | this Section 6-211.
| 8 | | (g) The city shall pay to the Fund on an annual basis | 9 | | through 2015 , in addition to
the usual city contributions, an | 10 | | amount at least equal to the sum of (1) the
increase in normal | 11 | | cost resulting from subsection (e) of Section 6-111 and
the | 12 | | changes made to this Section by this amendatory Act of the 93rd | 13 | | General
Assembly, plus (2) amortization (over a period of 30 | 14 | | years from the effective
date of this amendatory Act) of the | 15 | | initial unfunded liability resulting from
subsection (e) of | 16 | | Section 6-111 and the changes made to this Section by this
| 17 | | amendatory Act of the 93rd General Assembly. The payment | 18 | | required under this
subsection shall be no less than $400,000 | 19 | | per year. Payment shall begin with
the first calendar year | 20 | | commencing after the effective date of this amendatory
Act and | 21 | | shall be in addition to the tax levy otherwise calculated under | 22 | | Section
6-165. The city may increase that tax levy by the | 23 | | amount of the payment
required under this subsection, or it may | 24 | | utilize any funds appropriated for
this purpose.
| 25 | | (Source: P.A. 93-654, eff. 1-16-04.)
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| 1 | | (40 ILCS 5/6-229) | 2 | | Sec. 6-229. Provisions applicable to new hires. | 3 | | (a) Notwithstanding any other provision of this Article,
| 4 | | the provisions of this Section apply to a person who first
| 5 | | becomes a fireman under this Article on or after January 1, | 6 | | 2011. | 7 | | (b) A fireman age 55 or more who has 10 or more years of | 8 | | service in that capacity shall be entitled at his option to | 9 | | receive a monthly retirement annuity for his service as a | 10 | | fireman computed by multiplying 2.5% for each year of such | 11 | | service by his or her final average salary. | 12 | | The retirement annuity of a fireman who is retiring after | 13 | | attaining age 50 with 10 or more years of creditable service | 14 | | shall be reduced by one-half of 1% for each month that the | 15 | | fireman's age is under age 55. | 16 | | The maximum retirement annuity under this subsection (b) | 17 | | shall be 75%
of final average salary. | 18 | | For the purposes of this subsection (b), "final average | 19 | | salary" means the average monthly salary obtained by dividing | 20 | | the total salary of the fireman during the 96 consecutive | 21 | | months of service within the last 120 months of service in | 22 | | which the total salary was the highest by the number of months | 23 | | of service in that period. | 24 | | Beginning on January 1, 2011, for all purposes under
this | 25 | | Code (including without limitation the calculation of
benefits | 26 | | and employee contributions), the annual salary
based on the |
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| 1 | | plan year of a member or participant to whom this Section | 2 | | applies shall not exceed $106,800; however, that amount shall | 3 | | annually thereafter be increased by the lesser of (i) 3% of | 4 | | that amount, including all previous adjustments, or (ii) | 5 | | one-half the annual unadjusted percentage increase (but not | 6 | | less than zero) in the consumer price index-u for the 12 months | 7 | | ending with the September preceding each November 1, including | 8 | | all previous adjustments. | 9 | | (c) Notwithstanding any other provision of this Article, | 10 | | for a person who first becomes a fireman under this Article on | 11 | | or after January 1, 2011, the annuity to which the surviving | 12 | | spouse, children, or parents are entitled under this subsection | 13 | | (c) shall be in the amount of 66 2/3% of the fireman's earned | 14 | | pension at the date of death , subject to the limitations set | 15 | | forth in Sections 6-148 and 6-149, as applicable . | 16 | | Notwithstanding any other provision of this Article, the | 17 | | monthly annuity
of a survivor of a person who first becomes a | 18 | | fireman under this Article on or after January 1, 2011 shall be | 19 | | increased on the January 1 after attainment of age 60 by the | 20 | | recipient of the survivor's pension and
each January 1 | 21 | | thereafter by 3% or one-half the annual unadjusted percentage | 22 | | increase in the consumer price index-u for the
12 months ending | 23 | | with September preceding each November 1, whichever is less, of | 24 | | the originally granted survivor's annuity. If the annual | 25 | | unadjusted percentage change in
the consumer price index-u for | 26 | | a 12-month period ending in September is zero or, when compared |
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| 1 | | with the preceding period, decreases, then the annuity shall | 2 | | not
be increased.
| 3 | | (Source: P.A. 96-1495, eff. 1-1-11.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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