Full Text of HB0843 96th General Assembly
HB0843 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0843
Introduced 2/9/2009, by Rep. Angelo Saviano - Sidney H. Mathias SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/4-107 |
from Ch. 108 1/2, par. 4-107 |
40 ILCS 5/4-118 |
from Ch. 108 1/2, par. 4-118 |
30 ILCS 805/8.33 new |
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Amends the Downstate Firefighter Article of the Illinois Pension Code. Allows a person qualified to participate in a downstate firefighter pension fund who was mandatorily retired at age 65 pursuant to applicable law without having obtained 20 years of creditable service to be able to establish up to 5 years of creditable service for periods of employment under the Article for which creditable service is not otherwise established by contributing into the pension fund the amount that the firefighter would have contributed had deductions from salary been made for this purpose, plus interest thereon at the actuarially assumed rate, compounded annually, from the time the service was rendered until the date of payment. Allows the corporate authorities of a municipality that has mandatorily retired a firefighter at age 65 to add to the tax levy for pension purposes an amount equal to the projected cost of the employer contributions for a firefighter electing to establish the additional 5 years of creditable service. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB0843 |
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LRB096 09314 AMC 19468 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 |
| Sections 4-107 and 4-118 as follows:
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| (40 ILCS 5/4-107) (from Ch. 108 1/2, par. 4-107)
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| Sec. 4-107. Qualifications.
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| (a) A firefighter who has not contributed to the fund | 9 |
| during the entire
period of service, to be entitled to the | 10 |
| benefits of this Article, must
contribute to the fund the | 11 |
| amount he or she would have paid had deductions
been made from | 12 |
| his or her salary during the entire period of his or her
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| creditable service.
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| (b) Any person appointed as a firefighter in a municipality | 15 |
| shall, within
3 months after receiving his or her first | 16 |
| appointment and within 3 months
after any reappointment make | 17 |
| written application to the board to come under
the provisions | 18 |
| of this Article.
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| (c) A person otherwise qualified to participate who was | 20 |
| excluded from
participation by reason of the age or fitness | 21 |
| requirements removed by this
amendatory Act of 1995 may elect | 22 |
| to participate by making a written application
to the Board | 23 |
| before July 1, 1996. Persons so electing shall begin
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HB0843 |
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LRB096 09314 AMC 19468 b |
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| participation on the first day of the month following the month | 2 |
| in which the
application is received by the Board. These | 3 |
| persons may also elect to
establish creditable service for | 4 |
| periods of employment as a firefighter during
which they did | 5 |
| not participate by paying into the pension fund, before January
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| 1, 1997, the amount that the person would have contributed had | 7 |
| deductions from
salary been made for this purpose at the time | 8 |
| the service was rendered,
together with interest thereon at 6% | 9 |
| per annum, compounded annually, from the
time the service was | 10 |
| rendered until the date of payment.
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| (d) A person described in subsection (h) of Section 15-107 | 12 |
| shall not
participate in any pension fund established under | 13 |
| this Article with respect
to employment for which he or she is | 14 |
| a participating employee in the State
Universities Retirement | 15 |
| System.
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| (e) A person qualified to participate in a pension fund | 17 |
| established pursuant to this Article who was mandatorily | 18 |
| retired at age 65 pursuant to applicable law without having | 19 |
| obtained 20 years of creditable service and who applies in | 20 |
| writing to the fund within 6 months after the effective date of | 21 |
| this amendatory Act of the 96th General Assembly may establish | 22 |
| up to 5 years of creditable service for periods of employment | 23 |
| under this Article for which creditable service is not | 24 |
| otherwise established by contributing into the pension fund the | 25 |
| amount that the firefighter would have contributed had | 26 |
| deductions from salary been made for this purpose. The amount |
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HB0843 |
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LRB096 09314 AMC 19468 b |
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| contributed by the firefighter shall also include interest | 2 |
| thereon at the actuarially assumed rate as determined by the | 3 |
| Public Pension Division of the Department of Financial and | 4 |
| Professional Regulation, compounded annually, from the time | 5 |
| the service was rendered until the date of payment. | 6 |
| A firefighter electing to establish creditable service | 7 |
| pursuant to this subsection (e) shall receive an adjustment to | 8 |
| his or her monthly pension pursuant to Section 4-109. | 9 |
| (Source: P.A. 89-52, eff. 6-30-95; 90-576, eff. 3-31-98.)
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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 | 13 |
| municipality shall annually levy a tax upon all the taxable | 14 |
| property
of the municipality at the rate on the dollar which | 15 |
| will produce an amount
which, when added to the deductions from | 16 |
| the salaries or wages of
firefighters and revenues available | 17 |
| from other sources, will equal a sum
sufficient to meet the | 18 |
| annual actuarial requirements of the pension fund,
as | 19 |
| determined by an enrolled actuary employed by the Illinois | 20 |
| Department of
Insurance or by an enrolled actuary retained by | 21 |
| the pension fund or
municipality. For the purposes of this | 22 |
| Section, the annual actuarial
requirements of the pension fund | 23 |
| are equal to (1) the normal cost of the
pension fund, or 17.5% | 24 |
| of the salaries and wages to be paid to firefighters
for the | 25 |
| year involved, whichever is greater, plus (2) the annual amount
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HB0843 |
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LRB096 09314 AMC 19468 b |
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| necessary to amortize the fund's unfunded accrued liabilities | 2 |
| over a period
of 40 years from July 1, 1993, as annually | 3 |
| updated and determined by an
enrolled actuary employed by the | 4 |
| Illinois Department of Insurance or by an
enrolled actuary | 5 |
| retained by the pension fund or the municipality. The amount
to | 6 |
| be applied towards the amortization of the unfunded accrued | 7 |
| liability in any
year shall not be less than the annual amount | 8 |
| required to amortize the unfunded
accrued liability, including | 9 |
| interest, as a level percentage of payroll over
the number of | 10 |
| years remaining in the 40 year amortization period.
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| (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).
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| (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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LRB096 09314 AMC 19468 b |
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| Levy Requirement issued to the fund by the
Department of | 2 |
| Insurance.
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| (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.
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| (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
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| retirement systems for a period of at least 3 years as of July | 20 |
| 1, 1983.
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| (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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HB0843 |
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LRB096 09314 AMC 19468 b |
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| Section 15-155 of this
Code.
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| (g) The corporate authorities of a municipality that has | 3 |
| mandatorily retired a firefighter at age 65 may add to the tax | 4 |
| levy otherwise provided for in this Section an amount equal to | 5 |
| the projected cost of the employer contributions for a | 6 |
| firefighter electing to establish creditable service pursuant | 7 |
| to subsection (e) of Section 4-107. | 8 |
| (Source: P.A. 94-859, eff. 6-15-06.)
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| Section 90. The State Mandates Act is amended by adding | 10 |
| Section 8.33 as follows: | 11 |
| (30 ILCS 805/8.33 new) | 12 |
| Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | 13 |
| of this Act, no reimbursement by the State is required for the | 14 |
| implementation of any mandate created by this amendatory Act of | 15 |
| the 96th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law.
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