97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB0144

 

Introduced 1/18/2011, by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/3-101  from Ch. 108 1/2, par. 3-101
40 ILCS 5/3-144.6 new
40 ILCS 5/4-101  from Ch. 108 1/2, par. 4-101
40 ILCS 5/4-106.1  from Ch. 108 1/2, par. 4-106.1
30 ILCS 805/8.35 new

    Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Allows the corporate authorities of a municipality, by resolution or ordinance, to dissolve the downstate police or firefighter pension funds established by the municipality if an independent auditor has certified to the authorities that the funds have no liabilities, participants, or beneficiaries entitled to benefits. Requires the corporate authorities of the municipality to reestablish those funds if a police officer or firefighter of the municipality seeks to establish service credit in the fund or if reestablishment of the fund is required upon a former police officer or firefighter's reinstatement of creditable service. Suspends the duty of the corporate authorities of a municipality to establish and administer a downstate police or firefighter pension fund while the fund is dissolved. Requires the Public Pension Division of the Department of Insurance to adopt corresponding procedural rules.


LRB097 05348 JDS 45403 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB0144LRB097 05348 JDS 45403 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 3-101, 4-101, and 4-106.1 and adding Section 3-144.6
6as follows:
 
7    (40 ILCS 5/3-101)  (from Ch. 108 1/2, par. 3-101)
8    Sec. 3-101. Creation of fund. In each municipality, as
9defined in Section 3-103, the city council or the board of
10trustees, as the case may be, shall establish and administer a
11police pension fund, as prescribed in this Article, for the
12benefit of its police officers and of their surviving spouses,
13children, and certain other dependents. The duty of the
14corporate authorities of a municipality to establish and
15administer a police pension fund shall be suspended during any
16period during which the fund is dissolved under Section 3-144.6
17of this Code.
18(Source: P.A. 83-1440.)
 
19    (40 ILCS 5/3-144.6 new)
20    Sec. 3-144.6. Dissolution and reestablishment of inactive
21police pension funds. The corporate authorities of a
22municipality for which a pension fund has been established

 

 

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1under this Article may, by resolution or ordinance, dissolve
2the fund if an independent auditor has certified to the
3authorities that the fund has no liabilities, participants, or
4beneficiaries entitled to benefits, and the authorities shall
5reestablish the fund if a police officer of the municipality
6seeks to establish service credit in the fund or if
7reestablishment of the fund is required upon a former police
8officer's reinstatement of creditable service under subsection
9(b) of Section 3-110.7 of this Code.
10    The Public Pension Division of the Department of Insurance
11shall adopt rules regarding the process and procedures for (i)
12dissolving a pension fund under this Section and (ii)
13redistributing assets and reestablishing the fund if
14reestablishment of the fund is necessary.
 
15    (40 ILCS 5/4-101)  (from Ch. 108 1/2, par. 4-101)
16    Sec. 4-101. Creation of fund. In each municipality as
17defined in Section 4-103, the city council or the board of
18trustees, as the case may be, shall establish and administer a
19firefighters' pension fund as prescribed in this Article, for
20the benefit of its firefighters and of their surviving spouses,
21children and certain other dependents. The duty of the
22corporate authorities of a municipality to establish and
23administer a firefighters' pension fund shall be suspended
24during any period during which the fund is dissolved under
25subsection (c) of Section 4-106.1 of this Code.

 

 

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1(Source: P.A. 83-1440.)
 
2    (40 ILCS 5/4-106.1)  (from Ch. 108 1/2, par. 4-106.1)
3    Sec. 4-106.1. Discontinuation of fire protection district;
4annexation to fire protection district; dissolution and
5reestablishment of inactive firefighters' pension funds..
6    (a) Whenever a fire protection district which has
7established a pension fund under this Article is discontinued
8under "An Act in Relation to Fire Protection Districts", and
9the municipality assuming the obligations of the district is
10required to and has established a Firefighters' Pension Fund
11under this Article, the assets of the fund established by the
12district shall be transferred to the "Board of Trustees of the
13Firefighters Pension Fund" of the municipality. The
14Firefighter's Pension Fund of the municipality shall assume all
15accrued liabilities of the district's pension fund, and all
16accrued rights, benefits and future expectancies of the
17members, retired employees and beneficiaries of the district's
18fund shall remain unimpaired.
19    (b) If a municipal fire department for which a pension fund
20has been established under this Article is discontinued and the
21affected territory is annexed by a fire protection district,
22and the fire protection district is required to and has
23established a firefighters' pension fund under this Article,
24then the assets of the firefighters' pension fund established
25by the municipality shall be transferred to the board of

 

 

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1trustees of the pension fund of the fire protection district.
2The firefighters' pension fund of the fire protection district
3shall assume all liabilities of the municipality's
4firefighters' pension fund, and all of the accrued rights,
5benefits, and future expectancies of the members, retired
6employees, and beneficiaries of the municipality's
7firefighters' pension fund shall remain unimpaired.
8    (c) The corporate authorities of a municipality for which a
9pension fund has been established under this Article may, by
10resolution or ordinance, dissolve the fund if an independent
11auditor has certified to the authorities that the fund has no
12liabilities, participants, or beneficiaries entitled to
13benefits, and the authorities shall reestablish the fund if a
14firefighter of the municipality seeks to establish service
15credit in the fund or if reestablishment of the fund is
16required upon a former firefighter's reinstatement of
17creditable service under subsection (g) of Section 4-109.3 of
18this Code.
19    The Public Pension Division of the Department of Insurance
20shall adopt rules regarding the process and procedures for (i)
21dissolving a pension fund under this Section and (ii)
22redistributing assets and reestablishing the fund if
23reestablishment of the fund is necessary.
24(Source: P.A. 93-123, eff. 7-10-03.)
 
25    Section 90. The State Mandates Act is amended by adding

 

 

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1Section 8.35 as follows:
 
2    (30 ILCS 805/8.35 new)
3    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
4of this Act, no reimbursement by the State is required for the
5implementation of any mandate created by this amendatory Act of
6the 97th General Assembly.