Full Text of SB0037 101st General Assembly
SB0037sam002 101ST GENERAL ASSEMBLY | Sen. Melinda Bush Filed: 4/4/2019
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| 1 | | AMENDMENT TO SENATE BILL 37
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 37, AS AMENDED, by | 3 | | replacing everything after the enacting clause as follows:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing 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 |
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| 1 | | the pension fund or
municipality. For the purposes of this | 2 | | Section, the annual actuarial
requirements of the pension fund | 3 | | are equal to (1) the normal cost of the
pension fund, or 17.5% | 4 | | of the salaries and wages to be paid to firefighters
for the | 5 | | year involved, whichever is greater, plus (2) an annual amount
| 6 | | sufficient to bring the total assets of the pension fund up to | 7 | | 90% of the total actuarial liabilities of the pension fund by | 8 | | the end of municipal fiscal year 2040, as annually updated and | 9 | | determined by an enrolled actuary employed by the Illinois | 10 | | Department of Insurance or by an enrolled actuary retained by | 11 | | the pension fund or the municipality. In making these | 12 | | determinations, the required minimum employer contribution | 13 | | shall be calculated each year as a level percentage of payroll | 14 | | over the years remaining up to and including fiscal year 2040 | 15 | | and shall be determined under the projected unit credit | 16 | | actuarial cost method. The amount
to be applied towards the | 17 | | amortization of the unfunded accrued liability in any
year | 18 | | shall not be less than the annual amount required to amortize | 19 | | the unfunded
accrued liability, including interest, as a level | 20 | | percentage of payroll over
the number of years remaining in the | 21 | | 40 year amortization period.
| 22 | | (a-2) A municipality that has established a pension fund | 23 | | under this Article and who employs a full-time firefighter, as | 24 | | defined in Section 4-106, shall be deemed a primary employer | 25 | | with respect to that full-time firefighter. Any unit of local | 26 | | government of 5,000 or more inhabitants that employs or enrolls |
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| 1 | | and provides compensation to a firefighter in excess of $7,500 | 2 | | annually while that firefighter continues to earn service | 3 | | credits as a participant in a primary employer's pension fund | 4 | | under this Article shall be deemed a secondary employer and | 5 | | such employees shall be deemed to be secondary employee | 6 | | firefighters. Primary and secondary employers shall have the | 7 | | following duties to ensure that the primary employer's pension | 8 | | fund under this Article is compensated for additional | 9 | | liabilities and risks to which firefighters are exposed when | 10 | | performing work as firefighters for secondary employers: | 11 | | (1) A secondary employer shall annually prepare a | 12 | | report accounting for all wages and salaries paid to the | 13 | | secondary employee firefighters it employs for each fiscal | 14 | | year in which such firefighters are employed and transmit a | 15 | | certified copy of that report to the primary employer and | 16 | | the secondary employee firefighter no later than 30 days | 17 | | after the end of any fiscal year in which wages were paid | 18 | | to the secondary employee firefighters. | 19 | | (2) The secondary employer, concurrent with the | 20 | | certification of its report, shall contribute an amount | 21 | | equal to 17.5% of the total wages and salaries paid to the | 22 | | secondary employee firefighter to the primary employer's | 23 | | pension fund for deposit to the credit of the pension fund. | 24 | | (3) The primary employer and the pension fund of that | 25 | | primary employer shall have standing to enforce the pension | 26 | | funding obligations of the secondary employer established |
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| 1 | | under this subsection in accordance with the provisions of | 2 | | subsection (b-10) of this Section. | 3 | | The contributions required under paragraph (2) of this | 4 | | subsection apply beginning on the first day of the primary | 5 | | employer's pension fund's first fiscal year beginning on or | 6 | | after the effective date of this amendatory Act of the 101st | 7 | | General Assembly. | 8 | | The contributions required under paragraph (2) of this | 9 | | subsection are for the purposes of compensating the primary | 10 | | employer's pension fund for additional liabilities and risks to | 11 | | which firefighters are exposed when performing work as | 12 | | firefighters for secondary employers. | 13 | | Nothing in this Section shall be construed to allow a | 14 | | secondary employee to qualify for benefits or creditable | 15 | | service for employment as a firefighter for a secondary | 16 | | employer. | 17 | | (a-5) For purposes of determining the required employer | 18 | | contribution to a pension fund, the value of the pension fund's | 19 | | assets shall be equal to the actuarial value of the pension | 20 | | fund's assets, which shall be calculated as follows: | 21 | | (1) On March 30, 2011, the actuarial value of a pension | 22 | | fund's assets shall be equal to the market value of the | 23 | | assets as of that date. | 24 | | (2) In determining the actuarial value of the pension | 25 | | fund's assets for fiscal years after March 30, 2011, any | 26 | | actuarial gains or losses from investment return incurred |
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| 1 | | in a fiscal year shall be recognized in equal annual | 2 | | amounts over the 5-year period following that fiscal year. | 3 | | (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).
| 16 | | (b-5) If a participating municipality fails to transmit to | 17 | | the fund contributions required of it under this Article for | 18 | | more than 90 days after the payment of those contributions is | 19 | | due, the fund may, after giving notice to the municipality, | 20 | | certify to the State Comptroller the amounts of the delinquent | 21 | | payments in accordance with any applicable rules of the | 22 | | Comptroller, and the Comptroller must, beginning in fiscal year | 23 | | 2016, deduct and remit to the fund the certified amounts or a | 24 | | portion of those amounts from the following proportions of | 25 | | payments of State funds to the municipality: | 26 | | (1) in fiscal year 2016, one-third of the total amount |
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| 1 | | of any payments of State funds to the municipality; | 2 | | (2) in fiscal year 2017, two-thirds of the total amount | 3 | | of any payments of State funds to the municipality; and | 4 | | (3) in fiscal year 2018 and each fiscal year | 5 | | thereafter, the total amount of any payments of State funds | 6 | | to the municipality. | 7 | | The State Comptroller may not deduct from any payments of | 8 | | State funds to the municipality more than the amount of | 9 | | delinquent payments certified to the State Comptroller by the | 10 | | fund. | 11 | | (b-10) If a unit of local government fails to transmit to | 12 | | the fund contributions required of it under subsection (a-2) of | 13 | | this Section for more than 90 days after the payment of those | 14 | | contributions is due, the fund may, after giving notice to the | 15 | | unit of local government, certify to the State Comptroller the | 16 | | amounts of the delinquent payments in accordance with any | 17 | | applicable rules of the Comptroller, and the Comptroller must, | 18 | | beginning in fiscal year 2020, deduct and remit to the fund the | 19 | | certified amounts or a portion of those amounts from payments | 20 | | of State funds to the unit of local government. The State | 21 | | Comptroller may not deduct from any payments of State funds to | 22 | | the unit of local government more than the amount of delinquent | 23 | | payments certified to the State Comptroller by the fund. | 24 | | (c) The board shall make available to the membership and | 25 | | the general public
for inspection and copying at reasonable | 26 | | times the most recent Actuarial
Valuation Balance Sheet and Tax |
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| 1 | | Levy Requirement issued to the fund by the
Department of | 2 | | Insurance.
| 3 | | (d) The firefighters' pension fund shall consist of the | 4 | | following moneys
which shall be set apart by the treasurer of | 5 | | the municipality: (1) all
moneys derived from the taxes levied | 6 | | hereunder; (2) contributions
by firefighters as provided under | 7 | | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 8 | | emoluments that may be paid or given
for or on account of | 9 | | extraordinary service by the fire department or any
member | 10 | | thereof, except when allowed to be retained by competitive | 11 | | awards;
and (4) any money, real estate or personal property | 12 | | received by the board.
| 13 | | (e) For the purposes of this Section, "enrolled actuary" | 14 | | means an actuary:
(1) who is a member of the Society of | 15 | | Actuaries or the American
Academy of Actuaries; and (2) who is | 16 | | enrolled under Subtitle
C of Title III of the Employee | 17 | | Retirement Income Security Act of 1974, or
who has been engaged | 18 | | in providing actuarial services to one or more public
| 19 | | retirement systems for a period of at least 3 years as of July | 20 | | 1, 1983.
| 21 | | (f) The corporate authorities of a municipality that | 22 | | employs a person
who is described in subdivision (d) of Section | 23 | | 4-106 may add to the tax levy
otherwise provided for in this | 24 | | Section an amount equal to the projected cost of
the employer | 25 | | contributions required to be paid by the municipality to the | 26 | | State
Universities Retirement System under subsection (b-1) of |
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| 1 | | Section 15-155 of this
Code. | 2 | | (g) The Commission on Government Forecasting and
| 3 | | Accountability shall conduct a study of all funds established
| 4 | | under this Article and shall report its findings to the General
| 5 | | Assembly on or before January 1, 2013. To the fullest extent | 6 | | possible, the study shall include, but not be limited to, the | 7 | | following: | 8 | | (1) fund balances; | 9 | | (2) historical employer contribution rates for each
| 10 | | fund; | 11 | | (3) the actuarial formulas used as a basis for employer
| 12 | | contributions, including the actual assumed rate of return
| 13 | | for each year, for each fund; | 14 | | (4) available contribution funding sources; | 15 | | (5) the impact of any revenue limitations caused by
| 16 | | PTELL and employer home rule or non-home rule status; and | 17 | | (6) existing statutory funding compliance procedures
| 18 | | and funding enforcement mechanisms for all municipal
| 19 | | pension funds.
| 20 | | (Source: P.A. 99-8, eff. 7-9-15.)
| 21 | | Section 90. The State Mandates Act is amended by adding | 22 | | Section 8.43 as follows: | 23 | | (30 ILCS 805/8.43 new) | 24 | | Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8 |
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| 1 | | of this Act, no reimbursement by the State is required for the | 2 | | implementation of any mandate created by this amendatory Act of | 3 | | the 101st General Assembly.
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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