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Full Text of SB3538  96th General Assembly

SB3538ham003 96TH GENERAL ASSEMBLY

Rep. Kevin A. McCarthy

Filed: 11/30/2010

 

 


 

 


 
09600SB3538ham003LRB096 18789 JDS 44278 a

1
AMENDMENT TO SENATE BILL 3538

2    AMENDMENT NO. ______. Amend Senate Bill 3538, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 1-113.2, 3-111, 3-111.1, 3-112, 3-125,
74-109, 4-109.1, 4-114, 4-118, 5-167.1, 5-168, 6-164, 6-165, and
87-142.1 and by adding Sections 1-113.4a, 1-165, 5-238, and
96-229 as follows:
 
10    (40 ILCS 5/1-113.2)
11    Sec. 1-113.2. List of permitted investments for all Article
123 or 4 pension funds. Any pension fund established under
13Article 3 or 4 may invest in the following items:
14    (1) Interest bearing direct obligations of the United
15States of America.
16    (2) Interest bearing obligations to the extent that they

 

 

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1are fully guaranteed or insured as to payment of principal and
2interest by the United States of America.
3    (3) Interest bearing bonds, notes, debentures, or other
4similar obligations of agencies of the United States of
5America. For the purposes of this Section, "agencies of the
6United States of America" includes: (i) the Federal National
7Mortgage Association and the Student Loan Marketing
8Association; (ii) federal land banks, federal intermediate
9credit banks, federal farm credit banks, and any other entity
10authorized to issue direct debt obligations of the United
11States of America under the Farm Credit Act of 1971 or
12amendments to that Act; (iii) federal home loan banks and the
13Federal Home Loan Mortgage Corporation; and (iv) any agency
14created by Act of Congress that is authorized to issue direct
15debt obligations of the United States of America.
16    (4) Interest bearing savings accounts or certificates of
17deposit, issued by federally chartered banks or savings and
18loan associations, to the extent that the deposits are insured
19by agencies or instrumentalities of the federal government.
20    (5) Interest bearing savings accounts or certificates of
21deposit, issued by State of Illinois chartered banks or savings
22and loan associations, to the extent that the deposits are
23insured by agencies or instrumentalities of the federal
24government.
25    (6) Investments in credit unions, to the extent that the
26investments are insured by agencies or instrumentalities of the

 

 

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1federal government.
2    (7) Interest bearing bonds of the State of Illinois.
3    (8) Pooled interest bearing accounts managed by the
4Illinois Public Treasurer's Investment Pool in accordance with
5the Deposit of State Moneys Act, and interest bearing funds or
6pooled accounts of the Illinois Metropolitan Investment Funds,
7and interest bearing funds or pooled accounts managed,
8operated, and administered by banks, subsidiaries of banks, or
9subsidiaries of bank holding companies in accordance with the
10laws of the State of Illinois.
11    (9) Interest bearing bonds or tax anticipation warrants of
12any county, township, or municipal corporation of the State of
13Illinois.
14    (10) Direct obligations of the State of Israel, subject to
15the conditions and limitations of item (5.1) of Section 1-113.
16    (11) Money market mutual funds managed by investment
17companies that are registered under the federal Investment
18Company Act of 1940 and the Illinois Securities Law of 1953 and
19are diversified, open-ended management investment companies;
20provided that the portfolio of the money market mutual fund is
21limited to the following:
22        (i) bonds, notes, certificates of indebtedness,
23    treasury bills, or other securities that are guaranteed by
24    the full faith and credit of the United States of America
25    as to principal and interest;
26        (ii) bonds, notes, debentures, or other similar

 

 

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1    obligations of the United States of America or its
2    agencies; and
3        (iii) short term obligations of corporations organized
4    in the United States with assets exceeding $400,000,000,
5    provided that (A) the obligations mature no later than 180
6    days from the date of purchase, (B) at the time of
7    purchase, the obligations are rated by at least 2 standard
8    national rating services at one of their 3 highest
9    classifications, and (C) the obligations held by the mutual
10    fund do not exceed 10% of the corporation's outstanding
11    obligations.
12    (12) General accounts of life insurance companies
13authorized to transact business in Illinois.
14    (13) Any combination of the following, not to exceed 10% of
15the pension fund's net assets:
16        (i) separate accounts that are managed by life
17    insurance companies authorized to transact business in
18    Illinois and are comprised of diversified portfolios
19    consisting of common or preferred stocks, bonds, or money
20    market instruments;
21        (ii) separate accounts that are managed by insurance
22    companies authorized to transact business in Illinois, and
23    are comprised of real estate or loans upon real estate
24    secured by first or second mortgages; and
25        (iii) mutual funds that meet the following
26    requirements:

 

 

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1            (A) the mutual fund is managed by an investment
2        company as defined and registered under the federal
3        Investment Company Act of 1940 and registered under the
4        Illinois Securities Law of 1953;
5            (B) the mutual fund has been in operation for at
6        least 5 years;
7            (C) the mutual fund has total net assets of $250
8        million or more; and
9            (D) the mutual fund is comprised of diversified
10        portfolios of common or preferred stocks, bonds, or
11        money market instruments.
12    (14) Corporate bonds managed through an investment advisor
13must meet all of the following requirements:
14        (1) The bonds must be rated as investment grade by one
15    of the 2 largest rating services at the time of purchase.
16        (2) If subsequently downgraded below investment grade,
17    the bonds must be liquidated from the portfolio within 90
18    days after being downgraded by the manager.
19(Source: P.A. 90-507, eff. 8-22-97; 91-887, eff. 7-6-00.)
 
20    (40 ILCS 5/1-113.4a new)
21    Sec. 1-113.4a. List of additional permitted investments
22for Article 3 and 4 pension funds with net assets of
23$10,000,000 or more.
24    (a) In addition to the items in Sections 1-113.2 and
251-113.3, a pension fund established under Article 3 or 4 that

 

 

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1has net assets of at least $10,000,000 and has appointed an
2investment adviser, as defined under Sections 1-101.4 and
31-113.5, may, through that investment adviser, invest an
4additional portion of its assets in common and preferred stocks
5and mutual funds.
6    (b) The stocks must meet all of the following requirements:
7        (1) The common stocks must be listed on a national
8    securities exchange or board of trade (as defined in the
9    Federal Securities Exchange Act of 1934 and set forth in
10    paragraph G of Section 3 of the Illinois Securities Law of
11    1953) or quoted in the National Association of Securities
12    Dealers Automated Quotation System National Market System.
13        (2) The securities must be of a corporation in
14    existence for at least 5 years.
15        (3) The market value of stock in any one corporation
16    may not exceed 5% of the cash and invested assets of the
17    pension fund, and the investments in the stock of any one
18    corporation may not exceed 5% of the total outstanding
19    stock of that corporation.
20        (4) The straight preferred stocks or convertible
21    preferred stocks must be issued or guaranteed by a
22    corporation whose common stock qualifies for investment by
23    the board.
24    (c) The mutual funds must meet the following requirements:
25        (1) The mutual fund must be managed by an investment
26    company registered under the Federal Investment Company

 

 

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1    Act of 1940 and registered under the Illinois Securities
2    Law of 1953.
3        (2) The mutual fund must have been in operation for at
4    least 5 years.
5        (3) The mutual fund must have total net assets of
6    $250,000,000 or more.
7        (4) The mutual fund must be comprised of a diversified
8    portfolio of common or preferred stocks, bonds, or money
9    market instruments.
10    (d) A pension fund's total investment in the items
11authorized under this Section and Section 1-113.3 shall not
12exceed 50% effective July 1, 2011 and 55% effective July 1,
132012 of the market value of the pension fund's net present
14assets stated in its most recent annual report on file with the
15Department of Insurance.
16    (e) A pension fund that invests funds under this Section
17shall electronically file with the Division any reports of its
18investment activities that the Division may require, at the
19time and in the format required by the Division.
 
20    (40 ILCS 5/1-165 new)
21    Sec. 1-165. Commission on Government Forecasting and
22Accountability study. The Commission on Government Forecasting
23and Accountability shall conduct a study on the feasibility of:
24        (1) the creation of an investment pool to supplement
25    and enhance the investment opportunities available to

 

 

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1    boards of trustees of the pension funds organized under
2    Articles 3 and 4 of this Code; the study shall include an
3    analysis on any cost or cost savings associated with
4    establishing the system and transferring assets for
5    management under the investment pool; and
6        (2) enacting a contribution cost-share component
7    wherein employing municipalities and members of funds
8    established under Articles 3 and 4 of this Code each
9    contribute 50% of the normal cost of the defined-benefit
10    plan.
11    The Commission shall issue a report on its findings on or
12before December 31, 2011.
 
13    (40 ILCS 5/3-111)  (from Ch. 108 1/2, par. 3-111)
14    Sec. 3-111. Pension.
15    (a) A police officer age 50 or more with 20 or more years
16of creditable service, who is not a participant in the
17self-managed plan under Section 3-109.3 and who is no longer in
18service as a police officer, shall receive a pension of 1/2 of
19the salary attached to the rank held by the officer on the
20police force for one year immediately prior to retirement or,
21beginning July 1, 1987 for persons terminating service on or
22after that date, the salary attached to the rank held on the
23last day of service or for one year prior to the last day,
24whichever is greater. The pension shall be increased by 2.5% of
25such salary for each additional year of service over 20 years

 

 

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1of service through 30 years of service, to a maximum of 75% of
2such salary.
3    The changes made to this subsection (a) by this amendatory
4Act of the 91st General Assembly apply to all pensions that
5become payable under this subsection on or after January 1,
61999. All pensions payable under this subsection that began on
7or after January 1, 1999 and before the effective date of this
8amendatory Act shall be recalculated, and the amount of the
9increase accruing for that period shall be payable to the
10pensioner in a lump sum.
11    (a-5) No pension in effect on or granted after June 30,
12l973 shall be less than $200 per month. Beginning July 1, 1987,
13the minimum retirement pension for a police officer having at
14least 20 years of creditable service shall be $400 per month,
15without regard to whether or not retirement occurred prior to
16that date. If the minimum pension established in Section
173-113.1 is greater than the minimum provided in this
18subsection, the Section 3-113.1 minimum controls.
19    (b) A police officer mandatorily retired from service due
20to age by operation of law, having at least 8 but less than 20
21years of creditable service, shall receive a pension equal to 2
221/2% of the salary attached to the rank he or she held on the
23police force for one year immediately prior to retirement or,
24beginning July 1, 1987 for persons terminating service on or
25after that date, the salary attached to the rank held on the
26last day of service or for one year prior to the last day,

 

 

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1whichever is greater, for each year of creditable service.
2    A police officer who retires or is separated from service
3having at least 8 years but less than 20 years of creditable
4service, who is not mandatorily retired due to age by operation
5of law, and who does not apply for a refund of contributions at
6his or her last separation from police service, shall receive a
7pension upon attaining age 60 equal to 2.5% of the salary
8attached to the rank held by the police officer on the police
9force for one year immediately prior to retirement or,
10beginning July 1, 1987 for persons terminating service on or
11after that date, the salary attached to the rank held on the
12last day of service or for one year prior to the last day,
13whichever is greater, for each year of creditable service.
14    (c) A police officer no longer in service who has at least
15one but less than 8 years of creditable service in a police
16pension fund but meets the requirements of this subsection (c)
17shall be eligible to receive a pension from that fund equal to
182.5% of the salary attached to the rank held on the last day of
19service under that fund or for one year prior to that last day,
20whichever is greater, for each year of creditable service in
21that fund. The pension shall begin no earlier than upon
22attainment of age 60 (or upon mandatory retirement from the
23fund by operation of law due to age, if that occurs before age
2460) and in no event before the effective date of this
25amendatory Act of 1997.
26    In order to be eligible for a pension under this subsection

 

 

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1(c), the police officer must have at least 8 years of
2creditable service in a second police pension fund under this
3Article and be receiving a pension under subsection (a) or (b)
4of this Section from that second fund. The police officer need
5not be in service on or after the effective date of this
6amendatory Act of 1997.
7    (d) Notwithstanding any other provision of this Article,
8the provisions of this subsection (d) apply to a person who is
9not a participant in the self-managed plan under Section
103-109.3 and who first becomes a police officer under this
11Article on or after January 1, 2011.
12    A police officer age 55 or more who has 10 or more years of
13service in that capacity shall be entitled at his option to
14receive a monthly pension for his service as a police officer
15computed by multiplying 2.5% for each year of such service by
16his or her final average salary.
17    The pension of a police officer who is retiring after
18attaining age 50 with 10 or more years of creditable service
19shall be reduced by one-half of 1% for each month that the
20police officer's age is under age 55.
21    The maximum pension under this subsection (d) shall be 75%
22of final average salary.
23    For the purposes of this subsection (d), "final average
24salary" means the average monthly salary obtained by dividing
25the total salary of the police officer during the 96
26consecutive months of service within the last 120 months of

 

 

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1service in which the total salary was the highest by the number
2of months of service in that period.
3    Beginning on January 1, 2011, for all purposes under this
4Code (including without limitation the calculation of benefits
5and employee contributions), the annual salary based on the
6plan year of a member or participant to whom this Section
7applies shall not exceed $106,800; however, that amount shall
8annually thereafter be increased by the lesser of (i) 3% of
9that amount, including all previous adjustments, or (ii)
10one-half the annual unadjusted percentage increase (but not
11less than zero) in the consumer price index-u for the 12 months
12ending with the September preceding each November 1, including
13all previous adjustments.
14(Source: P.A. 90-460, eff. 8-17-97; 91-939, eff. 2-1-01.)
 
15    (40 ILCS 5/3-111.1)  (from Ch. 108 1/2, par. 3-111.1)
16    Sec. 3-111.1. Increase in pension.
17    (a) Except as provided in subsection (e), the monthly
18pension of a police officer who retires after July 1, 1971, and
19prior to January 1, 1986, shall be increased, upon either the
20first of the month following the first anniversary of the date
21of retirement if the officer is 60 years of age or over at
22retirement date, or upon the first day of the month following
23attainment of age 60 if it occurs after the first anniversary
24of retirement, by 3% of the originally granted pension and by
25an additional 3% of the originally granted pension in January

 

 

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1of each year thereafter.
2    (b) The monthly pension of a police officer who retired
3from service with 20 or more years of service, on or before
4July 1, 1971, shall be increased in January of the year
5following the year of attaining age 65 or in January of 1972,
6if then over age 65, by 3% of the originally granted pension
7for each year the police officer received pension payments. In
8each January thereafter, he or she shall receive an additional
9increase of 3% of the original pension.
10    (c) The monthly pension of a police officer who retires on
11disability or is retired for disability shall be increased in
12January of the year following the year of attaining age 60, by
133% of the original grant of pension for each year he or she
14received pension payments. In each January thereafter, the
15police officer shall receive an additional increase of 3% of
16the original pension.
17    (d) The monthly pension of a police officer who retires
18after January 1, 1986, shall be increased, upon either the
19first of the month following the first anniversary of the date
20of retirement if the officer is 55 years of age or over, or
21upon the first day of the month following attainment of age 55
22if it occurs after the first anniversary of retirement, by 1/12
23of 3% of the originally granted pension for each full month
24that has elapsed since the pension began, and by an additional
253% of the originally granted pension in January of each year
26thereafter.

 

 

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1    The changes made to this subsection (d) by this amendatory
2Act of the 91st General Assembly apply to all initial increases
3that become payable under this subsection on or after January
41, 1999. All initial increases that became payable under this
5subsection on or after January 1, 1999 and before the effective
6date of this amendatory Act shall be recalculated and the
7additional amount accruing for that period, if any, shall be
8payable to the pensioner in a lump sum.
9    (e) Notwithstanding the provisions of subsection (a), upon
10the first day of the month following (1) the first anniversary
11of the date of retirement, or (2) the attainment of age 55, or
12(3) July 1, 1987, whichever occurs latest, the monthly pension
13of a police officer who retired on or after January 1, 1977 and
14on or before January 1, 1986, and did not receive an increase
15under subsection (a) before July 1, 1987, shall be increased by
163% of the originally granted monthly pension for each full year
17that has elapsed since the pension began, and by an additional
183% of the originally granted pension in each January
19thereafter. The increases provided under this subsection are in
20lieu of the increases provided in subsection (a).
21    (f) Notwithstanding the other provisions of this Section,
22beginning with increases granted on or after July 1, 1993, the
23second and all subsequent automatic annual increases granted
24under subsection (a), (b), (d), or (e) of this Section shall be
25calculated as 3% of the amount of pension payable at the time
26of the increase, including any increases previously granted

 

 

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1under this Section, rather than 3% of the originally granted
2pension amount. Section 1-103.1 does not apply to this
3subsection (f).
4    (g) Notwithstanding any other provision of this Article,
5the monthly pension of a person who first becomes a police
6officer under this Article on or after January 1, 2011 shall be
7increased on the January 1 occurring either on or after the
8attainment of age 60 or the first anniversary of the pension
9start date, whichever is later. Each annual increase shall be
10calculated at 3% or one-half the annual unadjusted percentage
11increase (but not less than zero) in the consumer price index-u
12for the 12 months ending with the September preceding each
13November 1, whichever is less, of the originally granted
14pension. If the annual unadjusted percentage change in the
15consumer price index-u for a 12-month period ending in
16September is zero or, when compared with the preceding period,
17decreases, then the pension shall not be increased.
18    For the purposes of this subsection (g), "consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the boards of the pension funds.

 

 

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1(Source: P.A. 91-939, eff. 2-1-01.)
 
2    (40 ILCS 5/3-112)  (from Ch. 108 1/2, par. 3-112)
3    Sec. 3-112. Pension to survivors.
4    (a) Upon the death of a police officer entitled to a
5pension under Section 3-111, the surviving spouse shall be
6entitled to the pension to which the police officer was then
7entitled. Upon the death of the surviving spouse, or upon the
8remarriage of the surviving spouse if that remarriage
9terminates the surviving spouse's eligibility under Section
103-121, the police officer's unmarried children who are under
11age 18 or who are dependent because of physical or mental
12disability shall be entitled to equal shares of such pension.
13If there is no eligible surviving spouse and no eligible child,
14the dependent parent or parents of the officer shall be
15entitled to receive or share such pension until their death or
16marriage or remarriage after the death of the police officer.
17    Notwithstanding any other provision of this Article, for a
18person who first becomes a police officer under this Article on
19or after January 1, 2011, the pension to which the surviving
20spouse, children, or parents are entitled under this subsection
21(a) shall be in the amount of 66 2/3% of the police officer's
22earned pension at the date of death. Nothing in this subsection
23(a) shall act to diminish the survivor's benefits described in
24subsection (e) of this Section.
25    Notwithstanding any other provision of this Article, the

 

 

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1monthly pension of a survivor of a person who first becomes a
2police officer under this Article on or after January 1, 2011
3shall be increased on the January 1 after attainment of age 60
4by the recipient of the survivor's pension and each January 1
5thereafter by 3% or one-half the annual unadjusted percentage
6increase (but not less than zero) in the consumer price index-u
7for the 12 months ending with the September preceding each
8November 1, whichever is less, of the originally granted
9survivor's pension. If the annual unadjusted percentage change
10in the consumer price index-u for a 12-month period ending in
11September is zero or, when compared with the preceding period,
12decreases, then the survivor's pension shall not be increased.
13    For the purposes of this subsection (a), "consumer price
14index-u" means the index published by the Bureau of Labor
15Statistics of the United States Department of Labor that
16measures the average change in prices of goods and services
17purchased by all urban consumers, United States city average,
18all items, 1982-84 = 100. The new amount resulting from each
19annual adjustment shall be determined by the Public Pension
20Division of the Department of Insurance and made available to
21the boards of the pension funds.
22    (b) Upon the death of a police officer while in service,
23having at least 20 years of creditable service, or upon the
24death of a police officer who retired from service with at
25least 20 years of creditable service, whether death occurs
26before or after attainment of age 50, the pension earned by the

 

 

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1police officer as of the date of death as provided in Section
23-111 shall be paid to the survivors in the sequence provided
3in subsection (a) of this Section.
4    (c) Upon the death of a police officer while in service,
5having at least 10 but less than 20 years of service, a pension
6of 1/2 of the salary attached to the rank or ranks held by the
7officer for one year immediately prior to death shall be
8payable to the survivors in the sequence provided in subsection
9(a) of this Section. If death occurs as a result of the
10performance of duty, the 10 year requirement shall not apply
11and the pension to survivors shall be payable after any period
12of service.
13    (d) Beginning July 1, 1987, a minimum pension of $400 per
14month shall be paid to all surviving spouses, without regard to
15the fact that the death of the police officer occurred prior to
16that date. If the minimum pension established in Section
173-113.1 is greater than the minimum provided in this
18subsection, the Section 3-113.1 minimum controls.
19    (e) The pension of the surviving spouse of a police officer
20who dies (i) on or after January 1, 2001, (ii) without having
21begun to receive either a retirement pension payable under
22Section 3-111 or a disability pension payable under Section
233-114.1, 3-114.2, 3-114.3, or 3-114.6, and (iii) as a result of
24sickness, accident, or injury incurred in or resulting from the
25performance of an act of duty shall not be less than 100% of
26the salary attached to the rank held by the deceased police

 

 

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1officer on the last day of service, notwithstanding any
2provision in this Article to the contrary.
3(Source: P.A. 91-939, eff. 2-1-01.)
 
4    (40 ILCS 5/3-125)  (from Ch. 108 1/2, par. 3-125)
5    Sec. 3-125. Financing.
6    (a) The city council or the board of trustees of the
7municipality shall annually levy a tax upon all the taxable
8property of the municipality at the rate on the dollar which
9will produce an amount which, when added to the deductions from
10the salaries or wages of police officers, and revenues
11available from other sources, will equal a sum sufficient to
12meet the annual requirements of the police pension fund. The
13annual requirements to be provided by such tax levy are equal
14to (1) the normal cost of the pension fund for the year
15involved, plus (2) an the amount sufficient to bring the total
16assets of the pension fund up to 90% of the total actuarial
17liabilities of the pension fund by the end of municipal fiscal
18year 2040, as annually updated and determined by an enrolled
19actuary employed by the Illinois Department of Insurance or by
20an enrolled actuary retained by the pension fund or the
21municipality. In making these determinations, the required
22minimum employer contribution shall be calculated each year as
23a level percentage of payroll over the years remaining up to
24and including fiscal year 2040 and shall be determined under
25the projected unit credit actuarial cost method necessary to

 

 

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1amortize the fund's unfunded accrued liabilities as provided in
2Section 3-127. The tax shall be levied and collected in the
3same manner as the general taxes of the municipality, and in
4addition to all other taxes now or hereafter authorized to be
5levied upon all property within the municipality, and shall be
6in addition to the amount authorized to be levied for general
7purposes as provided by Section 8-3-1 of the Illinois Municipal
8Code, approved May 29, 1961, as amended. The tax shall be
9forwarded directly to the treasurer of the board within 30
10business days after receipt by the county.
11    (b) For purposes of determining the required employer
12contribution to a pension fund, the value of the pension fund's
13assets shall be equal to the actuarial value of the pension
14fund's assets, which shall be calculated as follows:
15        (1) On March 30, 2011, the actuarial value of a pension
16    fund's assets shall be equal to the market value of the
17    assets as of that date.
18        (2) In determining the actuarial value of the System's
19    assets for fiscal years after March 30, 2011, any actuarial
20    gains or losses from investment return incurred in a fiscal
21    year shall be recognized in equal annual amounts over the
22    5-year period following that fiscal year.
23    (c) If a participating municipality fails to transmit to
24the fund contributions required of it under this Article for
25more than 90 days after the payment of those contributions is
26due, the fund may, after giving notice to the municipality,

 

 

09600SB3538ham003- 21 -LRB096 18789 JDS 44278 a

1certify to the State Comptroller the amounts of the delinquent
2payments, and the Comptroller must, beginning in fiscal year
32016, deduct and deposit into the fund the certified amounts or
4a portion of those amounts from the following proportions of
5grants of State funds to the municipality:
6        (1) in fiscal year 2016, one-third of the total amount
7    of any grants of State funds to the municipality;
8        (2) in fiscal year 2017, two-thirds of the total amount
9    of any grants of State funds to the municipality; and
10        (3) in fiscal year 2018 and each fiscal year
11    thereafter, the total amount of any grants of State funds
12    to the municipality.
13    The State Comptroller may not deduct from any grants of
14State funds to the municipality more than the amount of
15delinquent payments certified to the State Comptroller by the
16fund.
17    (d) The police pension fund shall consist of the following
18moneys which shall be set apart by the treasurer of the
19municipality:
20        (1) All moneys derived from the taxes levied hereunder;
21        (2) Contributions by police officers under Section
22    3-125.1;
23        (3) All moneys accumulated by the municipality under
24    any previous legislation establishing a fund for the
25    benefit of disabled or retired police officers;
26        (4) Donations, gifts or other transfers authorized by

 

 

09600SB3538ham003- 22 -LRB096 18789 JDS 44278 a

1    this Article.
2    (e) The Commission on Government Forecasting and
3Accountability shall conduct a study of all funds established
4under this Article and shall report its findings to the General
5Assembly on or before January 1, 2013. To the fullest extent
6possible, the study shall include, but not be limited to, the
7following:
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. 95-530, eff. 8-28-07.)
 
21    (40 ILCS 5/4-109)  (from Ch. 108 1/2, par. 4-109)
22    Sec. 4-109. Pension.
23    (a) A firefighter age 50 or more with 20 or more years of
24creditable service, who is no longer in service as a
25firefighter, shall receive a monthly pension of 1/2 the monthly

 

 

09600SB3538ham003- 23 -LRB096 18789 JDS 44278 a

1salary attached to the rank held by him or her in the fire
2service at the date of retirement.
3    The monthly pension shall be increased by 1/12 of 2.5% of
4such monthly salary for each additional month over 20 years of
5service through 30 years of service, to a maximum of 75% of
6such monthly salary.
7    The changes made to this subsection (a) by this amendatory
8Act of the 91st General Assembly apply to all pensions that
9become payable under this subsection on or after January 1,
101999. All pensions payable under this subsection that began on
11or after January 1, 1999 and before the effective date of this
12amendatory Act shall be recalculated, and the amount of the
13increase accruing for that period shall be payable to the
14pensioner in a lump sum.
15    (b) A firefighter who retires or is separated from service
16having at least 10 but less than 20 years of creditable
17service, who is not entitled to receive a disability pension,
18and who did not apply for a refund of contributions at his or
19her last separation from service shall receive a monthly
20pension upon attainment of age 60 based on the monthly salary
21attached to his or her rank in the fire service on the date of
22retirement or separation from service according to the
23following schedule:
24    For 10 years of service, 15% of salary;
25    For 11 years of service, 17.6% of salary;
26    For 12 years of service, 20.4% of salary;

 

 

09600SB3538ham003- 24 -LRB096 18789 JDS 44278 a

1    For 13 years of service, 23.4% of salary;
2    For 14 years of service, 26.6% of salary;
3    For 15 years of service, 30% of salary;
4    For 16 years of service, 33.6% of salary;
5    For 17 years of service, 37.4% of salary;
6    For 18 years of service, 41.4% of salary;
7    For 19 years of service, 45.6% of salary.
8    (c) Notwithstanding any other provision of this Article,
9the provisions of this subsection (c) apply to a person who
10first becomes a firefighter under this Article on or after
11January 1, 2011.
12    A firefighter age 55 or more who has 10 or more years of
13service in that capacity shall be entitled at his option to
14receive a monthly pension for his service as a firefighter
15computed by multiplying 2.5% for each year of such service by
16his or her final average salary.
17    The pension of a firefighter who is retiring after
18attaining age 50 with 10 or more years of creditable service
19shall be reduced by one-half of 1% for each month that the
20firefighter's age is under age 55.
21    The maximum pension under this subsection (c) shall be 75%
22of final average salary.
23    For the purposes of this subsection (c), "final average
24salary" means the average monthly salary obtained by dividing
25the total salary of the firefighter during the 96 consecutive
26months of service within the last 120 months of service in

 

 

09600SB3538ham003- 25 -LRB096 18789 JDS 44278 a

1which the total salary was the highest by the number of months
2of service in that period.
3    Beginning on January 1, 2011, for all purposes under this
4Code (including without limitation the calculation of benefits
5and employee contributions), the annual salary based on the
6plan year of a member or participant to whom this Section
7applies shall not exceed $106,800; however, that amount shall
8annually thereafter be increased by the lesser of (i) 3% of
9that amount, including all previous adjustments, or (ii)
10one-half the annual unadjusted percentage increase (but not
11less than zero) in the consumer price index-u for the 12 months
12ending with the September preceding each November 1, including
13all previous adjustments.
14(Source: P.A. 91-466, eff. 8-6-99.)
 
15    (40 ILCS 5/4-109.1)  (from Ch. 108 1/2, par. 4-109.1)
16    Sec. 4-109.1. Increase in pension.
17    (a) Except as provided in subsection (e), the monthly
18pension of a firefighter who retires after July 1, 1971 and
19prior to January 1, 1986, shall, upon either the first of the
20month following the first anniversary of the date of retirement
21if 60 years of age or over at retirement date, or upon the
22first day of the month following attainment of age 60 if it
23occurs after the first anniversary of retirement, be increased
24by 2% of the originally granted monthly pension and by an
25additional 2% in each January thereafter. Effective January

 

 

09600SB3538ham003- 26 -LRB096 18789 JDS 44278 a

11976, the rate of the annual increase shall be 3% of the
2originally granted monthly pension.
3    (b) The monthly pension of a firefighter who retired from
4service with 20 or more years of service, on or before July 1,
51971, shall be increased, in January of the year following the
6year of attaining age 65 or in January 1972, if then over age
765, by 2% of the originally granted monthly pension, for each
8year the firefighter received pension payments. In each January
9thereafter, he or she shall receive an additional increase of
102% of the original monthly pension. Effective January 1976, the
11rate of the annual increase shall be 3%.
12    (c) The monthly pension of a firefighter who is receiving a
13disability pension under this Article shall be increased, in
14January of the year following the year the firefighter attains
15age 60, or in January 1974, if then over age 60, by 2% of the
16originally granted monthly pension for each year he or she
17received pension payments. In each January thereafter, the
18firefighter shall receive an additional increase of 2% of the
19original monthly pension. Effective January 1976, the rate of
20the annual increase shall be 3%.
21    (c-1) On January 1, 1998, every child's disability benefit
22payable on that date under Section 4-110 or 4-110.1 shall be
23increased by an amount equal to 1/12 of 3% of the amount of the
24benefit, multiplied by the number of months for which the
25benefit has been payable. On each January 1 thereafter, every
26child's disability benefit payable under Section 4-110 or

 

 

09600SB3538ham003- 27 -LRB096 18789 JDS 44278 a

14-110.1 shall be increased by 3% of the amount of the benefit
2then being paid, including any previous increases received
3under this Article. These increases are not subject to any
4limitation on the maximum benefit amount included in Section
54-110 or 4-110.1.
6    (c-2) On July 1, 2004, every pension payable to or on
7behalf of a minor or disabled surviving child that is payable
8on that date under Section 4-114 shall be increased by an
9amount equal to 1/12 of 3% of the amount of the pension,
10multiplied by the number of months for which the benefit has
11been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
12July 1, 2008, every pension payable to or on behalf of a minor
13or disabled surviving child that is payable under Section 4-114
14shall be increased by 3% of the amount of the pension then
15being paid, including any previous increases received under
16this Article. These increases are not subject to any limitation
17on the maximum benefit amount included in Section 4-114.
18    (d) The monthly pension of a firefighter who retires after
19January 1, 1986, shall, upon either the first of the month
20following the first anniversary of the date of retirement if 55
21years of age or over, or upon the first day of the month
22following attainment of age 55 if it occurs after the first
23anniversary of retirement, be increased by 1/12 of 3% of the
24originally granted monthly pension for each full month that has
25elapsed since the pension began, and by an additional 3% in
26each January thereafter.

 

 

09600SB3538ham003- 28 -LRB096 18789 JDS 44278 a

1    The changes made to this subsection (d) by this amendatory
2Act of the 91st General Assembly apply to all initial increases
3that become payable under this subsection on or after January
41, 1999. All initial increases that became payable under this
5subsection on or after January 1, 1999 and before the effective
6date of this amendatory Act shall be recalculated and the
7additional amount accruing for that period, if any, shall be
8payable to the pensioner in a lump sum.
9    (e) Notwithstanding the provisions of subsection (a), upon
10the first day of the month following (1) the first anniversary
11of the date of retirement, or (2) the attainment of age 55, or
12(3) July 1, 1987, whichever occurs latest, the monthly pension
13of a firefighter who retired on or after January 1, 1977 and on
14or before January 1, 1986 and did not receive an increase under
15subsection (a) before July 1, 1987, shall be increased by 3% of
16the originally granted monthly pension for each full year that
17has elapsed since the pension began, and by an additional 3% in
18each January thereafter. The increases provided under this
19subsection are in lieu of the increases provided in subsection
20(a).
21    (f) In July 2009, the monthly pension of a firefighter who
22retired before July 1, 1977 shall be recalculated and increased
23to reflect the amount that the firefighter would have received
24in July 2009 had the firefighter been receiving a 3% compounded
25increase for each year he or she received pension payments
26after January 1, 1986, plus any increases in pension received

 

 

09600SB3538ham003- 29 -LRB096 18789 JDS 44278 a

1for each year prior to January 1, 1986. In each January
2thereafter, he or she shall receive an additional increase of
33% of the amount of the pension then being paid. The changes
4made to this Section by this amendatory Act of the 96th General
5Assembly apply without regard to whether the firefighter was in
6service on or after its effective date.
7    (g) Notwithstanding any other provision of this Article,
8the monthly pension of a person who first becomes a firefighter
9under this Article on or after January 1, 2011 shall be
10increased on the January 1 occurring either on or after the
11attainment of age 60 or the first anniversary of the pension
12start date, whichever is later. Each annual increase shall be
13calculated at 3% or one-half the annual unadjusted percentage
14increase (but not less than zero) in the consumer price index-u
15for the 12 months ending with the September preceding each
16November 1, whichever is less, of the originally granted
17pension. If the annual unadjusted percentage change in the
18consumer price index-u for a 12-month period ending in
19September is zero or, when compared with the preceding period,
20decreases, then the pension shall not be increased.
21    For the purposes of this subsection (g), "consumer price
22index-u" means the index published by the Bureau of Labor
23Statistics of the United States Department of Labor that
24measures the average change in prices of goods and services
25purchased by all urban consumers, United States city average,
26all items, 1982-84 = 100. The new amount resulting from each

 

 

09600SB3538ham003- 30 -LRB096 18789 JDS 44278 a

1annual adjustment shall be determined by the Public Pension
2Division of the Department of Insurance and made available to
3the boards of the pension funds.
4(Source: P.A. 96-775, eff. 8-28-09.)
 
5    (40 ILCS 5/4-114)  (from Ch. 108 1/2, par. 4-114)
6    Sec. 4-114. Pension to survivors. If a firefighter who is
7not receiving a disability pension under Section 4-110 or
84-110.1 dies (1) as a result of any illness or accident, or (2)
9from any cause while in receipt of a disability pension under
10this Article, or (3) during retirement after 20 years service,
11or (4) while vested for or in receipt of a pension payable
12under subsection (b) of Section 4-109, or (5) while a deferred
13pensioner, having made all required contributions, a pension
14shall be paid to his or her survivors, based on the monthly
15salary attached to the firefighter's rank on the last day of
16service in the fire department, as follows:
17        (a)(1) To the surviving spouse, a monthly pension of
18    40% of the monthly salary, and to the guardian of any minor
19    child or children including a child which has been
20    conceived but not yet born, 12% of such monthly salary for
21    each such child until attainment of age 18 or until the
22    child's marriage, whichever occurs first. Beginning July
23    1, 1993, the monthly pension to the surviving spouse shall
24    be 54% of the monthly salary for all persons receiving a
25    surviving spouse pension under this Article, regardless of

 

 

09600SB3538ham003- 31 -LRB096 18789 JDS 44278 a

1    whether the deceased firefighter was in service on or after
2    the effective date of this amendatory Act of 1993.
3        (2) Beginning July 1, 2004, unless the amount provided
4    under paragraph (1) of this subsection (a) is greater, the
5    total monthly pension payable under this paragraph (a),
6    including any amount payable on account of children, to the
7    surviving spouse of a firefighter who died (i) while
8    receiving a retirement pension, (ii) while he or she was a
9    deferred pensioner with at least 20 years of creditable
10    service, or (iii) while he or she was in active service
11    having at least 20 years of creditable service, regardless
12    of age, shall be no less than 100% of the monthly
13    retirement pension earned by the deceased firefighter at
14    the time of death, regardless of whether death occurs
15    before or after attainment of age 50, including any
16    increases under Section 4-109.1. This minimum applies to
17    all such surviving spouses who are eligible to receive a
18    surviving spouse pension, regardless of whether the
19    deceased firefighter was in service on or after the
20    effective date of this amendatory Act of the 93rd General
21    Assembly, and notwithstanding any limitation on maximum
22    pension under paragraph (d) or any other provision of this
23    Article.
24        (3) If the pension paid on and after July 1, 2004 to
25    the surviving spouse of a firefighter who died on or after
26    July 1, 2004 and before the effective date of this

 

 

09600SB3538ham003- 32 -LRB096 18789 JDS 44278 a

1    amendatory Act of the 93rd General Assembly was less than
2    the minimum pension payable under paragraph (1) or (2) of
3    this subsection (a), the fund shall pay a lump sum equal to
4    the difference within 90 days after the effective date of
5    this amendatory Act of the 93rd General Assembly.
6        The pension to the surviving spouse shall terminate in
7    the event of the surviving spouse's remarriage prior to
8    July 1, 1993; remarriage on or after that date does not
9    affect the surviving spouse's pension, regardless of
10    whether the deceased firefighter was in service on or after
11    the effective date of this amendatory Act of 1993.
12        The surviving spouse's pension shall be subject to the
13    minimum established in Section 4-109.2.
14        (b) Upon the death of the surviving spouse leaving one
15    or more minor children, to the duly appointed guardian of
16    each such child, for support and maintenance of each such
17    child until the child reaches age 18 or marries, whichever
18    occurs first, a monthly pension of 20% of the monthly
19    salary.
20        (c) If a deceased firefighter leaves no surviving
21    spouse or unmarried minor children under age 18, but leaves
22    a dependent father or mother, to each dependent parent a
23    monthly pension of 18% of the monthly salary. To qualify
24    for the pension, a dependent parent must furnish
25    satisfactory proof that the deceased firefighter was at the
26    time of his or her death the sole supporter of the parent

 

 

09600SB3538ham003- 33 -LRB096 18789 JDS 44278 a

1    or that the parent was the deceased's dependent for federal
2    income tax purposes.
3        (d) The total pension provided under paragraphs (a),
4    (b) and (c) of this Section shall not exceed 75% of the
5    monthly salary of the deceased firefighter (1) when paid to
6    the survivor of a firefighter who has attained 20 or more
7    years of service credit and who receives or is eligible to
8    receive a retirement pension under this Article, or (2)
9    when paid to the survivor of a firefighter who dies as a
10    result of illness or accident, or (3) when paid to the
11    survivor of a firefighter who dies from any cause while in
12    receipt of a disability pension under this Article, or (4)
13    when paid to the survivor of a deferred pensioner. For all
14    other survivors of deceased firefighters, the total
15    pension provided under paragraphs (a), (b) and (c) of this
16    Section shall not exceed 50% of the retirement annuity the
17    firefighter would have received on the date of death.
18        The maximum pension limitations in this paragraph (d)
19    do not control over any contrary provision of this Article
20    explicitly establishing a minimum amount of pension or
21    granting a one-time or annual increase in pension.
22        (e) If a firefighter leaves no eligible survivors under
23    paragraphs (a), (b) and (c), the board shall refund to the
24    firefighter's estate the amount of his or her accumulated
25    contributions, less the amount of pension payments, if any,
26    made to the firefighter while living.

 

 

09600SB3538ham003- 34 -LRB096 18789 JDS 44278 a

1        (f) (Blank).
2        (g) If a judgment of dissolution of marriage between a
3    firefighter and spouse is judicially set aside subsequent
4    to the firefighter's death, the surviving spouse is
5    eligible for the pension provided in paragraph (a) only if
6    the judicial proceedings are filed within 2 years after the
7    date of the dissolution of marriage and within one year
8    after the firefighter's death and the board is made a party
9    to the proceedings. In such case the pension shall be
10    payable only from the date of the court's order setting
11    aside the judgment of dissolution of marriage.
12        (h) Benefits payable on account of a child under this
13    Section shall not be reduced or terminated by reason of the
14    child's attainment of age 18 if he or she is then dependent
15    by reason of a physical or mental disability but shall
16    continue to be paid as long as such dependency continues.
17    Individuals over the age of 18 and adjudged as a disabled
18    person pursuant to Article XIa of the Probate Act of 1975,
19    except for persons receiving benefits under Article III of
20    the Illinois Public Aid Code, shall be eligible to receive
21    benefits under this Act.
22        (i) Beginning January 1, 2000, the pension of the
23    surviving spouse of a firefighter who dies on or after
24    January 1, 1994 as a result of sickness, accident, or
25    injury incurred in or resulting from the performance of an
26    act of duty or from the cumulative effects of acts of duty

 

 

09600SB3538ham003- 35 -LRB096 18789 JDS 44278 a

1    shall not be less than 100% of the salary attached to the
2    rank held by the deceased firefighter on the last day of
3    service, notwithstanding subsection (d) or any other
4    provision of this Article.
5        (j) Beginning July 1, 2004, the pension of the
6    surviving spouse of a firefighter who dies on or after
7    January 1, 1988 as a result of sickness, accident, or
8    injury incurred in or resulting from the performance of an
9    act of duty or from the cumulative effects of acts of duty
10    shall not be less than 100% of the salary attached to the
11    rank held by the deceased firefighter on the last day of
12    service, notwithstanding subsection (d) or any other
13    provision of this Article.
14    Notwithstanding any other provision of this Article, if a
15person who first becomes a firefighter under this Article on or
16after January 1, 2011 and who is not receiving a disability
17pension under Section 4-110 or 4-110.1 dies (1) as a result of
18any illness or accident, (2) from any cause while in receipt of
19a disability pension under this Article, (3) during retirement
20after 20 years service, (4) while vested for or in receipt of a
21pension payable under subsection (b) of Section 4-109, or (5)
22while a deferred pensioner, having made all required
23contributions, then a pension shall be paid to his or her
24survivors in the amount of 66 2/3% of the firefighter's earned
25pension at the date of death. Nothing in this Section shall act
26to diminish the survivor's benefits described in subsection (j)

 

 

09600SB3538ham003- 36 -LRB096 18789 JDS 44278 a

1of this Section.
2    Notwithstanding any other provision of this Article, the
3monthly pension of a survivor of a person who first becomes a
4firefighter under this Article on or after January 1, 2011
5shall be increased on the January 1 after attainment of age 60
6by the recipient of the survivor's pension and each January 1
7thereafter by 3% or one-half the annual unadjusted percentage
8increase in the consumer price index-u for the 12 months ending
9with the September preceding each November 1, whichever is
10less, of the originally granted survivor's pension. If the
11annual unadjusted percentage change in the consumer price
12index-u for a 12-month period ending in September is zero or,
13when compared with the preceding period, decreases, then the
14survivor's pension shall not be increased.
15    For the purposes of this Section, "consumer price index-u"
16means the index published by the Bureau of Labor Statistics of
17the United States Department of Labor that measures the average
18change in prices of goods and services purchased by all urban
19consumers, United States city average, all items, 1982-84 =
20100. The new amount resulting from each annual adjustment shall
21be determined by the Public Pension Division of the Department
22of Insurance and made available to the boards of the pension
23funds.
24(Source: P.A. 95-279, eff. 1-1-08.)
 
25    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)

 

 

09600SB3538ham003- 37 -LRB096 18789 JDS 44278 a

1    Sec. 4-118. Financing.
2    (a) The city council or the board of trustees of the
3municipality shall annually levy a tax upon all the taxable
4property of the municipality at the rate on the dollar which
5will produce an amount which, when added to the deductions from
6the salaries or wages of firefighters and revenues available
7from other sources, will equal a sum sufficient to meet the
8annual actuarial requirements of the pension fund, as
9determined by an enrolled actuary employed by the Illinois
10Department of Insurance or by an enrolled actuary retained by
11the pension fund or municipality. For the purposes of this
12Section, the annual actuarial requirements of the pension fund
13are equal to (1) the normal cost of the pension fund, or 17.5%
14of the salaries and wages to be paid to firefighters for the
15year involved, whichever is greater, plus (2) an the annual
16amount sufficient to bring the total assets of the pension fund
17up to 90% of the total actuarial liabilities of the pension
18fund by the end of municipal fiscal year 2040, as annually
19updated and determined by an enrolled actuary employed by the
20Illinois Department of Insurance or by an enrolled actuary
21retained by the pension fund or the municipality. In making
22these determinations, the required minimum employer
23contribution shall be calculated each year as a level
24percentage of payroll over the years remaining up to and
25including fiscal year 2040 and shall be determined under the
26projected unit credit actuarial cost method necessary to

 

 

09600SB3538ham003- 38 -LRB096 18789 JDS 44278 a

1amortize the fund's unfunded accrued liabilities over a period
2of 40 years from July 1, 1993, as annually updated and
3determined by an enrolled actuary employed by the Illinois
4Department of Insurance or by an enrolled actuary retained by
5the pension fund or the municipality. The amount to be applied
6towards the amortization of the unfunded accrued liability in
7any year shall not be less than the annual amount required to
8amortize the unfunded accrued liability, including interest,
9as a level percentage of payroll over the number of years
10remaining in the 40 year amortization period.
11    (a-5) For purposes of determining the required employer
12contribution to a pension fund, the value of the pension fund's
13assets shall be equal to the actuarial value of the pension
14fund's assets, which shall be calculated as follows:
15        (1) On March 30, 2011, the actuarial value of a pension
16    fund's assets shall be equal to the market value of the
17    assets as of that date.
18        (2) In determining the actuarial value of the pension
19    fund's assets for fiscal years after March 30, 2011, any
20    actuarial gains or losses from investment return incurred
21    in a fiscal year shall be recognized in equal annual
22    amounts over the 5-year period following that fiscal year.
23    (b) The tax shall be levied and collected in the same
24manner as the general taxes of the municipality, and shall be
25in addition to all other taxes now or hereafter authorized to
26be levied upon all property within the municipality, and in

 

 

09600SB3538ham003- 39 -LRB096 18789 JDS 44278 a

1addition to the amount authorized to be levied for general
2purposes, under Section 8-3-1 of the Illinois Municipal Code or
3under Section 14 of the Fire Protection District Act. The tax
4shall be forwarded directly to the treasurer of the board
5within 30 business days of receipt by the county (or, in the
6case of amounts added to the tax levy under subsection (f),
7used by the municipality to pay the employer contributions
8required under subsection (b-1) of Section 15-155 of this
9Code).
10    (b-5) If a participating municipality fails to transmit to
11the fund contributions required of it under this Article for
12more than 90 days after the payment of those contributions is
13due, the fund may, after giving notice to the municipality,
14certify to the State Comptroller the amounts of the delinquent
15payments, and the Comptroller must, beginning in fiscal year
162016, deduct and deposit into the fund the certified amounts or
17a portion of those amounts from the following proportions of
18grants of State funds to the municipality:
19        (1) in fiscal year 2016, one-third of the total amount
20    of any grants of State funds to the municipality;
21        (2) in fiscal year 2017, two-thirds of the total amount
22    of any grants of State funds to the municipality; and
23        (3) in fiscal year 2018 and each fiscal year
24    thereafter, the total amount of any grants of State funds
25    to the municipality.
26    The State Comptroller may not deduct from any grants of

 

 

09600SB3538ham003- 40 -LRB096 18789 JDS 44278 a

1State funds to the municipality more than the amount of
2delinquent payments certified to the State Comptroller by the
3fund.
4    (c) The board shall make available to the membership and
5the general public for inspection and copying at reasonable
6times the most recent Actuarial Valuation Balance Sheet and Tax
7Levy Requirement issued to the fund by the Department of
8Insurance.
9    (d) The firefighters' pension fund shall consist of the
10following moneys which shall be set apart by the treasurer of
11the municipality: (1) all moneys derived from the taxes levied
12hereunder; (2) contributions by firefighters as provided under
13Section 4-118.1; (3) all rewards in money, fees, gifts, and
14emoluments that may be paid or given for or on account of
15extraordinary service by the fire department or any member
16thereof, except when allowed to be retained by competitive
17awards; and (4) any money, real estate or personal property
18received by the board.
19    (e) For the purposes of this Section, "enrolled actuary"
20means an actuary: (1) who is a member of the Society of
21Actuaries or the American Academy of Actuaries; and (2) who is
22enrolled under Subtitle C of Title III of the Employee
23Retirement Income Security Act of 1974, or who has been engaged
24in providing actuarial services to one or more public
25retirement systems for a period of at least 3 years as of July
261, 1983.

 

 

09600SB3538ham003- 41 -LRB096 18789 JDS 44278 a

1    (f) The corporate authorities of a municipality that
2employs a person who is described in subdivision (d) of Section
34-106 may add to the tax levy otherwise provided for in this
4Section an amount equal to the projected cost of the employer
5contributions required to be paid by the municipality to the
6State Universities Retirement System under subsection (b-1) of
7Section 15-155 of this Code.
8    (g) The Commission on Government Forecasting and
9Accountability shall conduct a study of all funds established
10under this Article and shall report its findings to the General
11Assembly on or before January 1, 2013. To the fullest extent
12possible, the study shall include, but not be limited to, the
13following:
14        (1) fund balances;
15        (2) historical employer contribution rates for each
16    fund;
17        (3) the actuarial formulas used as a basis for employer
18    contributions, including the actual assumed rate of return
19    for each year, for each fund;
20        (4) available contribution funding sources;
21        (5) the impact of any revenue limitations caused by
22    PTELL and employer home rule or non-home rule status; and
23        (6) existing statutory funding compliance procedures
24    and funding enforcement mechanisms for all municipal
25    pension funds.
26(Source: P.A. 94-859, eff. 6-15-06.)
 

 

 

09600SB3538ham003- 42 -LRB096 18789 JDS 44278 a

1    (40 ILCS 5/5-167.1)  (from Ch. 108 1/2, par. 5-167.1)
2    Sec. 5-167.1. Automatic increase in annuity; retirement
3from service after September 1, 1967.
4    (a) A policeman who retires from service after September 1,
51967 with at least 20 years of service credit shall, upon
6either the first of the month following the first anniversary
7of his date of retirement if he is age 60 (age 55 if born before
8January 1, 1955) or over on that anniversary date, or upon the
9first of the month following his attainment of age 60 (age 55
10if born before January 1, 1955) if it occurs after the first
11anniversary of his retirement date, have his then fixed and
12payable monthly annuity increased by 1 1/2% and such first
13fixed annuity as granted at retirement increased by an
14additional 1 1/2% in January of each year thereafter up to a
15maximum increase of 30%. Beginning January 1, 1983 for
16policemen born before January 1, 1930, and beginning January 1,
171988 for policemen born on or after January 1, 1930 but before
18January 1, 1940, and beginning January 1, 1996 for policemen
19born on or after January 1, 1940 but before January 1, 1945,
20and beginning January 1, 2000 for policemen born on or after
21January 1, 1945 but before January 1, 1950, and beginning
22January 1, 2005 for policemen born on or after January 1, 1950
23but before January 1, 1955, such increases shall be 3% and such
24policemen shall not be subject to the 30% maximum increase.
25    Any policeman born before January 1, 1945 who qualifies for

 

 

09600SB3538ham003- 43 -LRB096 18789 JDS 44278 a

1a minimum annuity and retires after September 1, 1967 but has
2not received the initial increase under this subsection before
3January 1, 1996 is entitled to receive the initial increase
4under this subsection on (1) January 1, 1996, (2) the first
5anniversary of the date of retirement, or (3) attainment of age
655, whichever occurs last. The changes to this Section made by
7Public Act 89-12 apply beginning January 1, 1996 and without
8regard to whether the policeman or annuitant terminated service
9before the effective date of that Act.
10    Any policeman born before January 1, 1950 who qualifies for
11a minimum annuity and retires after September 1, 1967 but has
12not received the initial increase under this subsection before
13January 1, 2000 is entitled to receive the initial increase
14under this subsection on (1) January 1, 2000, (2) the first
15anniversary of the date of retirement, or (3) attainment of age
1655, whichever occurs last. The changes to this Section made by
17this amendatory Act of the 92nd General Assembly apply without
18regard to whether the policeman or annuitant terminated service
19before the effective date of this amendatory Act.
20    Any policeman born before January 1, 1955 who qualifies for
21a minimum annuity and retires after September 1, 1967 but has
22not received the initial increase under this subsection before
23January 1, 2005 is entitled to receive the initial increase
24under this subsection on (1) January 1, 2005, (2) the first
25anniversary of the date of retirement, or (3) attainment of age
2655, whichever occurs last. The changes to this Section made by

 

 

09600SB3538ham003- 44 -LRB096 18789 JDS 44278 a

1this amendatory Act of the 94th General Assembly apply without
2regard to whether the policeman or annuitant terminated service
3before the effective date of this amendatory Act.
4    (b) Subsection (a) of this Section is not applicable to an
5employee receiving a term annuity.
6    (c) To help defray the cost of such increases in annuity,
7there shall be deducted, beginning September 1, 1967, from each
8payment of salary to a policeman, 1/2 of 1% of each salary
9payment concurrently with and in addition to the salary
10deductions otherwise made for annuity purposes.
11    The city, in addition to the contributions otherwise made
12by it for annuity purposes under other provisions of this
13Article, shall make matching contributions concurrently with
14such salary deductions.
15    Each such 1/2 of 1% deduction from salary and each such
16contribution by the city of 1/2 of 1% of salary shall be
17credited to the Automatic Increase Reserve, to be used to
18defray the cost of the 1 1/2% annuity increase provided by this
19Section. Any balance in such reserve as of the beginning of
20each calendar year shall be credited with interest at the rate
21of 3% per annum.
22    Such deductions from salary and city contributions shall
23continue while the policeman is in service.
24    The salary deductions provided in this Section are not
25subject to refund, except to the policeman himself, in any case
26in which a policeman withdraws prior to qualification for

 

 

09600SB3538ham003- 45 -LRB096 18789 JDS 44278 a

1minimum annuity and applies for refund or applies for annuity,
2and also where a term annuity becomes payable. In such cases,
3the total of such salary deductions shall be refunded to the
4policeman, without interest, and charged to the Automatic
5Increase Reserve.
6    (d) Notwithstanding any other provision of this Article,
7for a person who first becomes a policeman under this Article
8on or after January 1, 2011, the annuity to which the survivor
9is entitled under this subsection (d) shall be in the amount of
1066 2/3% of the policeman's earned annuity at the date of death.
11Nothing in this subsection (d) shall act to diminish the
12survivor's benefits described in this Section.
13    Notwithstanding any other provision of this Article, the
14monthly annuity of a survivor of a person who first becomes a
15policeman under this Article on or after January 1, 2011 shall
16be increased on the January 1 after attainment of age 60 by the
17recipient of the survivor's annuity and each January 1
18thereafter by 3% or one-half the annual unadjusted percentage
19increase (but not less than zero) in the consumer price index-u
20for the 12 months ending with the September preceding each
21November 1, whichever is less, of the originally granted
22annuity. If the annual unadjusted percentage change in the
23consumer price index-u for a 12-month period ending in
24September is zero or, when compared with the preceding period,
25decreases, then the annuity shall not be increased.
26    For the purposes of this subsection (d), "consumer price

 

 

09600SB3538ham003- 46 -LRB096 18789 JDS 44278 a

1index-u" means the index published by the Bureau of Labor
2Statistics of the United States Department of Labor that
3measures the average change in prices of goods and services
4purchased by all urban consumers, United States city average,
5all items, 1982-84 = 100. The new amount resulting from each
6annual adjustment shall be determined by the Public Pension
7Division of the Department of Insurance and made available to
8the boards of the pension funds.
9(Source: P.A. 94-719, eff. 1-6-06.)
 
10    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
11    Sec. 5-168. Financing.
12    (a) Except as expressly provided in this Section, the city
13shall levy a tax annually upon all taxable property therein for
14the purpose of providing revenue for the fund.
15    The tax shall be at a rate that will produce a sum which,
16when added to the amounts deducted from the policemen's
17salaries and the amounts deposited in accordance with
18subsection (g), is sufficient for the purposes of the fund.
19    For the years 1968 and 1969, the city council shall levy a
20tax annually at a rate on the dollar of the assessed valuation
21of all taxable property that will produce, when extended, not
22to exceed $9,700,000. Beginning with the year 1970 and through
232014, each year thereafter the city council shall levy a tax
24annually at a rate on the dollar of the assessed valuation of
25all taxable property that will produce when extended an amount

 

 

09600SB3538ham003- 47 -LRB096 18789 JDS 44278 a

1not to exceed the total amount of contributions by the
2policemen to the Fund made in the calendar year 2 years before
3the year for which the applicable annual tax is levied,
4multiplied by 1.40 for the tax levy year 1970; by 1.50 for the
5year 1971; by 1.65 for 1972; by 1.85 for 1973; by 1.90 for
61974; by 1.97 for 1975 through 1981; by 2.00 for 1982 and for
7each year through 2014 thereafter. Beginning in 2015, the city
8council shall levy a tax annually at a rate on the dollar of
9the assessed valuation of all taxable property that will
10produce when extended an annual amount that is equal to (1) the
11normal cost to the Fund, plus (2) an annual amount sufficient
12to bring the total assets of the Fund up to 90% of the total
13actuarial liabilities of the Fund by the end of fiscal year
142040, as annually updated and determined by an enrolled actuary
15employed by the Illinois Department of Insurance or by an
16enrolled actuary retained by the Fund or the city. In making
17these determinations, the required minimum employer
18contribution shall be calculated each year as a level
19percentage of payroll over the years remaining up to and
20including fiscal year 2040 and shall be determined under the
21projected unit credit actuarial cost method. For the purposes
22of this subsection (a), contributions by the policeman to the
23Fund shall not include payments made by a policeman to
24establish credit under Section 5-214.2 of this Code.
25    (a-5) For purposes of determining the required employer
26contribution to the Fund, the value of the Fund's assets shall

 

 

09600SB3538ham003- 48 -LRB096 18789 JDS 44278 a

1be equal to the actuarial value of the Fund's assets, which
2shall be calculated as follows:
3        (1) On March 30, 2011, the actuarial value of the
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 Fund's
7    assets for fiscal years after March 30, 2011, any actuarial
8    gains or losses from investment return incurred in a fiscal
9    year shall be recognized in equal annual amounts over the
10    5-year period following that fiscal year.
11    (a-7) If the city fails to transmit to the Fund
12contributions required of it under this Article for more than
1390 days after the payment of those contributions is due, the
14Fund may, after giving notice to the city, certify to the State
15Comptroller the amounts of the delinquent payments, and the
16Comptroller must, beginning in fiscal year 2016, deduct and
17deposit into the Fund the certified amounts or a portion of
18those amounts from the following proportions of grants of State
19funds to the city:
20        (1) in fiscal year 2016, one-third of the total amount
21    of any grants of State funds to the city;
22        (2) in fiscal year 2017, two-thirds of the total amount
23    of any grants of State funds to the city; and
24        (3) in fiscal year 2018 and each fiscal year
25    thereafter, the total amount of any grants of State funds
26    to the city.

 

 

09600SB3538ham003- 49 -LRB096 18789 JDS 44278 a

1    The State Comptroller may not deduct from any grants of
2State funds to the city more than the amount of delinquent
3payments certified to the State Comptroller by the Fund.
4    (b) The tax shall be levied and collected in like manner
5with the general taxes of the city, and is in addition to all
6other taxes which the city is now or may hereafter be
7authorized to levy upon all taxable property therein, and is
8exclusive of and in addition to the amount of tax the city is
9now or may hereafter be authorized to levy for general purposes
10under any law which may limit the amount of tax which the city
11may levy for general purposes. The county clerk of the county
12in which the city is located, in reducing tax levies under
13Section 8-3-1 of the Illinois Municipal Code, shall not
14consider the tax herein authorized as a part of the general tax
15levy for city purposes, and shall not include the tax in any
16limitation of the percent of the assessed valuation upon which
17taxes are required to be extended for the city.
18    (c) On or before January 10 of each year, the board shall
19notify the city council of the requirement that the tax herein
20authorized be levied by the city council for that current year.
21The board shall compute the amounts necessary for the purposes
22of this fund to be credited to the reserves established and
23maintained within the fund; shall make an annual determination
24of the amount of the required city contributions; and shall
25certify the results thereof to the city council.
26    As soon as any revenue derived from the tax is collected it

 

 

09600SB3538ham003- 50 -LRB096 18789 JDS 44278 a

1shall be paid to the city treasurer of the city and shall be
2held by him for the benefit of the fund in accordance with this
3Article.
4    (d) If the funds available are insufficient during any year
5to meet the requirements of this Article, the city may issue
6tax anticipation warrants against the tax levy for the current
7fiscal year.
8    (e) The various sums, including interest, to be contributed
9by the city, shall be taken from the revenue derived from such
10tax or otherwise as expressly provided in this Section. Any
11moneys of the city derived from any source other than the tax
12herein authorized shall not be used for any purpose of the fund
13nor the cost of administration thereof, unless applied to make
14the deposit expressly authorized in this Section or the
15additional city contributions required under subsection (h).
16    (f) If it is not possible or practicable for the city to
17make its contributions at the time that salary deductions are
18made, the city shall make such contributions as soon as
19possible thereafter, with interest thereon to the time it is
20made.
21    (g) In lieu of levying all or a portion of the tax required
22under this Section in any year, the city may deposit with the
23city treasurer no later than March 1 of that year for the
24benefit of the fund, to be held in accordance with this
25Article, an amount that, together with the taxes levied under
26this Section for that year, is not less than the amount of the

 

 

09600SB3538ham003- 51 -LRB096 18789 JDS 44278 a

1city contributions for that year as certified by the board to
2the city council. The deposit may be derived from any source
3legally available for that purpose, including, but not limited
4to, the proceeds of city borrowings. The making of a deposit
5shall satisfy fully the requirements of this Section for that
6year to the extent of the amounts so deposited. Amounts
7deposited under this subsection may be used by the fund for any
8of the purposes for which the proceeds of the tax levied under
9this Section may be used, including the payment of any amount
10that is otherwise required by this Article to be paid from the
11proceeds of that tax.
12    (h) In addition to the contributions required under the
13other provisions of this Article, by November 1 of the
14following specified years, the city shall deposit with the city
15treasurer for the benefit of the fund, to be held and used in
16accordance with this Article, the following specified amounts:
17$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
18$5,040,000 in 2002; and $4,620,000 in 2003.
19    The additional city contributions required under this
20subsection are intended to decrease the unfunded liability of
21the fund and shall not decrease the amount of the city
22contributions required under the other provisions of this
23Article. The additional city contributions made under this
24subsection may be used by the fund for any of its lawful
25purposes.
26(Source: P.A. 95-1036, eff. 2-17-09.)
 

 

 

09600SB3538ham003- 52 -LRB096 18789 JDS 44278 a

1    (40 ILCS 5/5-238 new)
2    Sec. 5-238. Provisions applicable to new hires.
3    (a) Notwithstanding any other provision of this Article,
4the provisions of this Section apply to a person who first
5becomes a policeman under this Article on or after January 1,
62011.
7    (b) A policeman age 55 or more who has 10 or more years of
8service in that capacity shall be entitled at his option to
9receive a monthly retirement annuity for his service as a
10police officer computed by multiplying 2.5% for each year of
11such service by his or her final average salary.
12    The retirement annuity of a policeman who is retiring after
13attaining age 50 with 10 or more years of creditable service
14shall be reduced by one-half of 1% for each month that the
15police officer's age is under age 55.
16    The maximum retirement annuity under this subsection (b)
17shall be 75% of final average salary.
18    For the purposes of this subsection (b), "final average
19salary" means the average monthly salary obtained by dividing
20the total salary of the policeman during the 96 consecutive
21months of service within the last 120 months of service in
22which the total salary was the highest by the number of months
23of service in that period.
24    Beginning on January 1, 2011, for all purposes under this
25Code (including without limitation the calculation of benefits

 

 

09600SB3538ham003- 53 -LRB096 18789 JDS 44278 a

1and employee contributions), the annual salary based on the
2plan year of a member or participant to whom this Section
3applies shall not exceed $106,800; however, that amount shall
4annually thereafter be increased by the lesser of (i) 3% of
5that amount, including all previous adjustments, or (ii)
6one-half the annual unadjusted percentage increase (but not
7less than zero) in the consumer price index-u for the 12 months
8ending with the September preceding each November 1, including
9all previous adjustments.
10    (c) Notwithstanding any other provision of this Article,
11for a person who first becomes a policeman under this Article
12on or after January 1, 2011, the annuity to which the surviving
13spouse, children, or parents are entitled under this subsection
14(c) shall be in the amount of 66 2/3% of the policeman's earned
15annuity at the date of death.
16    Notwithstanding any other provision of this Article, the
17monthly annuity of a survivor of a person who first becomes a
18policeman under this Article on or after January 1, 2011 shall
19be increased on the January 1 after attainment of age 60 by the
20recipient of the survivor's annuity and each January 1
21thereafter by 3% or one-half the annual unadjusted percentage
22increase (but not less than zero) in the consumer price index-u
23for the 12 months ending with the September preceding each
24November 1, whichever is less, of the originally granted
25survivor's annuity. If the unadjusted percentage change in the
26consumer price index-u for a 12-month period ending in

 

 

09600SB3538ham003- 54 -LRB096 18789 JDS 44278 a

1September is zero or, when compared with the preceding period,
2decreases, then the annuity shall not be increased.
3    For the purposes of this Section, "consumer price index-u"
4means the index published by the Bureau of Labor Statistics of
5the United States Department of Labor that measures the average
6change in prices of goods and services purchased by all urban
7consumers, United States city average, all items, 1982-84 =
8100. The new amount resulting from each annual adjustment shall
9be determined by the Public Pension Division of the Department
10of Insurance and made available to the boards of the pension
11funds.
 
12    (40 ILCS 5/6-164)   (from Ch. 108 1/2, par. 6-164)
13    Sec. 6-164. Automatic annual increase; retirement after
14September 1, 1959.
15    (a) A fireman qualifying for a minimum annuity who retires
16from service after September 1, 1959 shall, upon either the
17first of the month following the first anniversary of his date
18of retirement if he is age 60 (age 55 if born before January 1,
191955) or over on that anniversary date, or upon the first of
20the month following his attainment of age 60 (age 55 if born
21before January 1, 1955) if that occurs after the first
22anniversary of his retirement date, have his then fixed and
23payable monthly annuity increased by 1 1/2%, and such first
24fixed annuity as granted at retirement increased by an
25additional 1 1/2% in January of each year thereafter up to a

 

 

09600SB3538ham003- 55 -LRB096 18789 JDS 44278 a

1maximum increase of 30%. Beginning July 1, 1982 for firemen
2born before January 1, 1930, and beginning January 1, 1990 for
3firemen born after December 31, 1929 and before January 1,
41940, and beginning January 1, 1996 for firemen born after
5December 31, 1939 but before January 1, 1945, and beginning
6January 1, 2004, for firemen born after December 31, 1944 but
7before January 1, 1955, such increases shall be 3% and such
8firemen shall not be subject to the 30% maximum increase.
9    Any fireman born before January 1, 1945 who qualifies for a
10minimum annuity and retires after September 1, 1967 but has not
11received the initial increase under this subsection before
12January 1, 1996 is entitled to receive the initial increase
13under this subsection on (1) January 1, 1996, (2) the first
14anniversary of the date of retirement, or (3) attainment of age
1555, whichever occurs last. The changes to this Section made by
16this amendatory Act of 1995 apply beginning January 1, 1996 and
17apply without regard to whether the fireman or annuitant
18terminated service before the effective date of this amendatory
19Act of 1995.
20    Any fireman born before January 1, 1955 who qualifies for a
21minimum annuity and retires after September 1, 1967 but has not
22received the initial increase under this subsection before
23January 1, 2004 is entitled to receive the initial increase
24under this subsection on (1) January 1, 2004, (2) the first
25anniversary of the date of retirement, or (3) attainment of age
2655, whichever occurs last. The changes to this Section made by

 

 

09600SB3538ham003- 56 -LRB096 18789 JDS 44278 a

1this amendatory Act of the 93rd General Assembly apply without
2regard to whether the fireman or annuitant terminated service
3before the effective date of this amendatory Act.
4    (b) Subsection (a) of this Section is not applicable to an
5employee receiving a term annuity.
6    (c) To help defray the cost of such increases in annuity,
7there shall be deducted, beginning September 1, 1959, from each
8payment of salary to a fireman, 1/8 of 1% of each such salary
9payment and an additional 1/8 of 1% beginning on September 1,
101961, and September 1, 1963, respectively, concurrently with
11and in addition to the salary deductions otherwise made for
12annuity purposes.
13    Each such additional 1/8 of 1% deduction from salary which
14shall, on September 1, 1963, result in a total increase of 3/8
15of 1% of salary, shall be credited to the Automatic Increase
16Reserve, to be used, together with city contributions as
17provided in this Article, to defray the cost of the 1 1/2%
18annuity increments herein specified. Any balance in such
19reserve as of the beginning of each calendar year shall be
20credited with interest at the rate of 3% per annum.
21    The salary deductions provided in this Section are not
22subject to refund, except to the fireman himself, in any case
23in which a fireman withdraws prior to qualification for minimum
24annuity and applies for refund, or applies for annuity, and
25also where a term annuity becomes payable. In such cases, the
26total of such salary deductions shall be refunded to the

 

 

09600SB3538ham003- 57 -LRB096 18789 JDS 44278 a

1fireman, without interest, and charged to the aforementioned
2reserve.
3    (d) Notwithstanding any other provision of this Article,
4the monthly annuity of a person who first becomes a fireman
5under this Article on or after January 1, 2011 shall be
6increased on the January 1 occurring either on or after the
7attainment of age 60 or the first anniversary of the annuity
8start date, whichever is later. Each annual increase shall be
9calculated at 3% or one-half the annual unadjusted percentage
10increase (but not less than zero) in the consumer price index-u
11for the 12 months ending with the September preceding each
12November 1, whichever is less, of the originally granted
13retirement annuity. If the annual unadjusted percentage change
14in the consumer price index-u for a 12-month period ending in
15September is zero or, when compared with the preceding period,
16decreases, then the annuity shall not be increased.
17    For the purposes of this subsection (d), "consumer price
18index-u" means the index published by the Bureau of Labor
19Statistics of the United States Department of Labor that
20measures the average change in prices of goods and services
21purchased by all urban consumers, United States city average,
22all items, 1982-84 = 100. The new amount resulting from each
23annual adjustment shall be determined by the Public Pension
24Division of the Department of Insurance and made available to
25the boards of the pension funds.
26(Source: P.A. 93-654, eff. 1-16-04.)
 

 

 

09600SB3538ham003- 58 -LRB096 18789 JDS 44278 a

1    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
2    Sec. 6-165. Financing; tax.
3    (a) Except as expressly provided in this Section, each city
4shall levy a tax annually upon all taxable property therein for
5the purpose of providing revenue for the fund. For the years
6prior to the year 1960, the tax rate shall be as provided for
7in the "Firemen's Annuity and Benefit Fund of the Illinois
8Municipal Code". The tax, from and after January 1, 1968 to and
9including the year 1971, shall not exceed .0863% of the value,
10as equalized or assessed by the Department of Revenue, of all
11taxable property in the city. Beginning with the year 1972 and
12through 2014, each year thereafter the city shall levy a tax
13annually at a rate on the dollar of the value, as equalized or
14assessed by the Department of Revenue of all taxable property
15within such city that will produce, when extended, not to
16exceed an amount equal to the total amount of contributions by
17the employees to the fund made in the calendar year 2 years
18prior to the year for which the annual applicable tax is
19levied, multiplied by 2.23 through the calendar year 1981, and
20by 2.26 for the year 1982 and for each year through 2014
21thereafter. Beginning in 2015, the city council shall levy a
22tax annually at a rate on the dollar of the assessed valuation
23of all taxable property that will produce when extended an
24annual amount that is equal to (1) the normal cost to the Fund,
25plus (2) an annual amount sufficient to bring the total assets

 

 

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1of the Fund up to 90% of the total actuarial liabilities of the
2Fund by the end of fiscal year 2040, as annually updated and
3determined by an enrolled actuary employed by the Illinois
4Department of Insurance or by an enrolled actuary retained by
5the Fund or the city. In making these determinations, the
6required minimum employer contribution shall be calculated
7each year as a level percentage of payroll over the years
8remaining up to and including fiscal year 2040 and shall be
9determined under the projected unit credit actuarial cost
10method.
11    To provide revenue for the ordinary death benefit
12established by Section 6-150 of this Article, in addition to
13the contributions by the firemen for this purpose, the city
14council shall for the year 1962 and each year thereafter
15annually levy a tax, which shall be in addition to and
16exclusive of the taxes authorized to be levied under the
17foregoing provisions of this Section, upon all taxable property
18in the city, as equalized or assessed by the Department of
19Revenue, at such rate per cent of the value of such property as
20shall be sufficient to produce for each year the sum of
21$142,000.
22    The amounts produced by the taxes levied annually, together
23with the deposit expressly authorized in this Section, shall be
24sufficient, when added to the amounts deducted from the
25salaries of firemen and applied to the fund, to provide for the
26purposes of the fund.

 

 

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1    (a-5) For purposes of determining the required employer
2contribution to the Fund, the value of the Fund's assets shall
3be equal to the actuarial value of the Fund's assets, which
4shall be calculated as follows:
5        (1) On March 30, 2011, the actuarial value of the
6    Fund's assets shall be equal to the market value of the
7    assets as of that date.
8        (2) In determining the actuarial value of the Fund's
9    assets for fiscal years after March 30, 2011, any actuarial
10    gains or losses from investment return incurred in a fiscal
11    year shall be recognized in equal annual amounts over the
12    5-year period following that fiscal year.
13    (a-7) If the city fails to transmit to the Fund
14contributions required of it under this Article for more than
1590 days after the payment of those contributions is due, the
16Fund may, after giving notice to the city, certify to the State
17Comptroller the amounts of the delinquent payments, and the
18Comptroller must, beginning in fiscal year 2016, deduct and
19deposit into the Fund the certified amounts or a portion of
20those amounts from the following proportions of grants of State
21funds to the city:
22        (1) in fiscal year 2016, one-third of the total amount
23    of any grants of State funds to the city;
24        (2) in fiscal year 2017, two-thirds of the total amount
25    of any grants of State funds to the city; and
26        (3) in fiscal year 2018 and each fiscal year

 

 

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1    thereafter, the total amount of any grants of State funds
2    to the city.
3    The State Comptroller may not deduct from any grants of
4State funds to the city more than the amount of delinquent
5payments certified to the State Comptroller by the Fund.
6    (b) The taxes shall be levied and collected in like manner
7with the general taxes of the city, and shall be in addition to
8all other taxes which the city may levy upon all taxable
9property therein and shall be exclusive of and in addition to
10the amount of tax the city may levy for general purposes under
11Section 8-3-1 of the Illinois Municipal Code, approved May 29,
121961, as amended, or under any other law or laws which may
13limit the amount of tax which the city may levy for general
14purposes.
15    (c) The amounts of the taxes to be levied in each year
16shall be certified to the city council by the board.
17    (d) As soon as any revenue derived from such taxes is
18collected, it shall be paid to the city treasurer and held for
19the benefit of the fund, and all such revenue shall be paid
20into the fund in accordance with the provisions of this
21Article.
22    (e) If the funds available are insufficient during any year
23to meet the requirements of this Article, the city may issue
24tax anticipation warrants, against the tax levies herein
25authorized for the current fiscal year.
26    (f) The various sums, hereinafter stated, including

 

 

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1interest, to be contributed by the city, shall be taken from
2the revenue derived from the taxes or otherwise as expressly
3provided in this Section. Except for defraying the cost of
4administration of the fund during the calendar year in which a
5city first attains a population of 500,000 and comes under the
6provisions of this Article and the first calendar year
7thereafter, any money of the city derived from any source other
8than these taxes or the sale of tax anticipation warrants shall
9not be used to provide revenue for the fund, nor to pay any
10part of the cost of administration thereof, unless applied to
11make the deposit expressly authorized in this Section or the
12additional city contributions required under subsection (h).
13    (g) In lieu of levying all or a portion of the tax required
14under this Section in any year, the city may deposit with the
15city treasurer no later than March 1 of that year for the
16benefit of the fund, to be held in accordance with this
17Article, an amount that, together with the taxes levied under
18this Section for that year, is not less than the amount of the
19city contributions for that year as certified by the board to
20the city council. The deposit may be derived from any source
21legally available for that purpose, including, but not limited
22to, the proceeds of city borrowings. The making of a deposit
23shall satisfy fully the requirements of this Section for that
24year to the extent of the amounts so deposited. Amounts
25deposited under this subsection may be used by the fund for any
26of the purposes for which the proceeds of the taxes levied

 

 

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1under this Section may be used, including the payment of any
2amount that is otherwise required by this Article to be paid
3from the proceeds of those taxes.
4    (h) In addition to the contributions required under the
5other provisions of this Article, by November 1 of the
6following specified years, the city shall deposit with the city
7treasurer for the benefit of the fund, to be held and used in
8accordance with this Article, the following specified amounts:
9$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
10$5,040,000 in 2002; and $4,620,000 in 2003.
11    The additional city contributions required under this
12subsection are intended to decrease the unfunded liability of
13the fund and shall not decrease the amount of the city
14contributions required under the other provisions of this
15Article. The additional city contributions made under this
16subsection may be used by the fund for any of its lawful
17purposes.
18(Source: P.A. 93-654, eff. 1-16-04.)
 
19    (40 ILCS 5/6-229 new)
20    Sec. 6-229. Provisions applicable to new hires.
21    (a) Notwithstanding any other provision of this Article,
22the provisions of this Section apply to a person who first
23becomes a fireman under this Article on or after January 1,
242011.
25    (b) A fireman age 55 or more who has 10 or more years of

 

 

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1service in that capacity shall be entitled at his option to
2receive a monthly retirement annuity for his service as a
3fireman computed by multiplying 2.5% for each year of such
4service by his or her final average salary.
5    The retirement annuity of a fireman who is retiring after
6attaining age 50 with 10 or more years of creditable service
7shall be reduced by one-half of 1% for each month that the
8fireman's age is under age 55.
9    The maximum retirement annuity under this subsection (b)
10shall be 75% of final average salary.
11    For the purposes of this subsection (b), "final average
12salary" means the average monthly salary obtained by dividing
13the total salary of the fireman during the 96 consecutive
14months of service within the last 120 months of service in
15which the total salary was the highest by the number of months
16of service in that period.
17    Beginning on January 1, 2011, for all purposes under this
18Code (including without limitation the calculation of benefits
19and employee contributions), the annual salary based on the
20plan year of a member or participant to whom this Section
21applies shall not exceed $106,800; however, that amount shall
22annually thereafter be increased by the lesser of (i) 3% of
23that amount, including all previous adjustments, or (ii)
24one-half the annual unadjusted percentage increase (but not
25less than zero) in the consumer price index-u for the 12 months
26ending with the September preceding each November 1, including

 

 

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1all previous adjustments.
2    (c) Notwithstanding any other provision of this Article,
3for a person who first becomes a fireman under this Article on
4or after January 1, 2011, the annuity to which the surviving
5spouse, children, or parents are entitled under this subsection
6(c) shall be in the amount of 66 2/3% of the fireman's earned
7pension at the date of death.
8    Notwithstanding any other provision of this Article, the
9monthly annuity of a survivor of a person who first becomes a
10fireman under this Article on or after January 1, 2011 shall be
11increased on the January 1 after attainment of age 60 by the
12recipient of the survivor's pension and each January 1
13thereafter by 3% or one-half the annual unadjusted percentage
14increase in the consumer price index-u for the 12 months ending
15with September preceding each November 1, whichever is less, of
16the originally granted survivor's annuity. If the annual
17unadjusted percentage change in the consumer price index-u for
18a 12-month period ending in September is zero or, when compared
19with the preceding period, decreases, then the annuity shall
20not be increased.
 
21    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
22    Sec. 7-142.1. Sheriff's law enforcement employees.
23    (a) In lieu of the retirement annuity provided by
24subparagraph 1 of paragraph (a) of Section 7-142:
25    Any sheriff's law enforcement employee who has 20 or more

 

 

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1years of service in that capacity and who terminates service
2prior to January 1, 1988 shall be entitled at his option to
3receive a monthly retirement annuity for his service as a
4sheriff's law enforcement employee computed by multiplying 2%
5for each year of such service up to 10 years, 2 1/4% for each
6year of such service above 10 years and up to 20 years, and 2
71/2% for each year of such service above 20 years, by his
8annual final rate of earnings and dividing by 12.
9    Any sheriff's law enforcement employee who has 20 or more
10years of service in that capacity and who terminates service on
11or after January 1, 1988 and before July 1, 2004 shall be
12entitled at his option to receive a monthly retirement annuity
13for his service as a sheriff's law enforcement employee
14computed by multiplying 2.5% for each year of such service up
15to 20 years, 2% for each year of such service above 20 years
16and up to 30 years, and 1% for each year of such service above
1730 years, by his annual final rate of earnings and dividing by
1812.
19    Any sheriff's law enforcement employee who has 20 or more
20years of service in that capacity and who terminates service on
21or after July 1, 2004 shall be entitled at his or her option to
22receive a monthly retirement annuity for service as a sheriff's
23law enforcement employee computed by multiplying 2.5% for each
24year of such service by his annual final rate of earnings and
25dividing by 12.
26    If a sheriff's law enforcement employee has service in any

 

 

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1other capacity, his retirement annuity for service as a
2sheriff's law enforcement employee may be computed under this
3Section and the retirement annuity for his other service under
4Section 7-142.
5    In no case shall the total monthly retirement annuity for
6persons who retire before July 1, 2004 exceed 75% of the
7monthly final rate of earnings. In no case shall the total
8monthly retirement annuity for persons who retire on or after
9July 1, 2004 exceed 80% of the monthly final rate of earnings.
10    (b) Whenever continued group insurance coverage is elected
11in accordance with the provisions of Section 367h of the
12Illinois Insurance Code, as now or hereafter amended, the total
13monthly premium for such continued group insurance coverage or
14such portion thereof as is not paid by the municipality shall,
15upon request of the person electing such continued group
16insurance coverage, be deducted from any monthly pension
17benefit otherwise payable to such person pursuant to this
18Section, to be remitted by the Fund to the insurance company or
19other entity providing the group insurance coverage.
20    (c) A sheriff's law enforcement employee who has service in
21any other capacity may convert up to 10 years of that service
22into service as a sheriff's law enforcement employee by paying
23to the Fund an amount equal to (1) the additional employee
24contribution required under Section 7-173.1, plus (2) the
25additional employer contribution required under Section 7-172,
26plus (3) interest on items (1) and (2) at the prescribed rate

 

 

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1from the date of the service to the date of payment.
2    (d) The changes to subsections (a) and (b) of this Section
3made by this amendatory Act of the 94th General Assembly apply
4only to persons in service on or after July 1, 2004. In the
5case of such a person who begins to receive a retirement
6annuity before the effective date of this amendatory Act of the
794th General Assembly, the annuity shall be recalculated
8prospectively to reflect those changes, with the resulting
9increase beginning to accrue on the first annuity payment date
10following the effective date of this amendatory Act.
11    (e) Any elected county officer who was entitled to receive
12a stipend from the State on or after July 1, 2009 and on or
13before June 30, 2010 may establish earnings credit for the
14amount of stipend not received, if the elected county official
15applies in writing to the fund within 6 months after the
16effective date of this amendatory Act of the 96th General
17Assembly and pays to the fund an amount equal to (i) employee
18contributions on the amount of stipend not received, (ii)
19employer contributions determined by the Board equal to the
20employer's normal cost of the benefit on the amount of stipend
21not received, plus (iii) interest on items (i) and (ii) at the
22actuarially assumed rate.
23    (f) Notwithstanding any other provision of this Article,
24the provisions of this subsection (f) apply to a person who
25first becomes a sheriff's law enforcement employee under this
26Article on or after January 1, 2011.

 

 

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1    A sheriff's law enforcement employee age 55 or more who has
210 or more years of service in that capacity shall be entitled
3at his option to receive a monthly retirement annuity for his
4or her service as a sheriff's law enforcement employee computed
5by multiplying 2.5% for each year of such service by his or her
6final rate of earnings.
7    The retirement annuity of a sheriff's law enforcement
8employee who is retiring after attaining age 50 with 10 or more
9years of creditable service shall be reduced by one-half of 1%
10for each month that the sheriff's law enforcement employee's
11age is under age 55.
12    The maximum retirement annuity under this subsection (f)
13shall be 75% of final rate of earnings.
14    For the purposes of this subsection (f), "final rate of
15earnings" means the average monthly earnings obtained by
16dividing the total salary of the sheriff's law enforcement
17employee during the 96 consecutive months of service within the
18last 120 months of service in which the total earnings was the
19highest by the number of months of service in that period.
20    Notwithstanding any other provision of this Article,
21beginning on January 1, 2011, for all purposes under this Code
22(including without limitation the calculation of benefits and
23employee contributions), the annual earnings of a sheriff's law
24enforcement employee to whom this Section applies shall not
25include overtime and shall not exceed $106,800; however, that
26amount shall annually thereafter be increased by the lesser of

 

 

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1(i) 3% of that amount, including all previous adjustments, or
2(ii) one-half the annual unadjusted percentage increase (but
3not less than zero) in the consumer price index-u for the 12
4months ending with the September preceding each November 1,
5including all previous adjustments.
6    (g) Notwithstanding any other provision of this Article,
7the monthly annuity of a person who first becomes a sheriff's
8law enforcement employee under this Article on or after January
91, 2011 shall be increased on the January 1 occurring either on
10or after the attainment of age 60 or the first anniversary of
11the annuity start date, whichever is later. Each annual
12increase shall be calculated at 3% or one-half the annual
13unadjusted percentage increase (but not less than zero) in the
14consumer price index-u for the 12 months ending with the
15September preceding each November 1, whichever is less, of the
16originally granted retirement annuity. If the annual
17unadjusted percentage change in the consumer price index-u for
18a 12-month period ending in September is zero or, when compared
19with the preceding period, decreases, then the annuity shall
20not be increased.
21    (h) Notwithstanding any other provision of this Article,
22for a person who first becomes a sheriff's law enforcement
23employee under this Article on or after January 1, 2011, the
24annuity to which the surviving spouse, children, or parents are
25entitled under this subsection (h) shall be in the amount of 66
262/3% of the sheriff's law enforcement employee's earned annuity

 

 

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1at the date of death.
2    (i) Notwithstanding any other provision of this Article,
3the monthly annuity of a survivor of a person who first becomes
4a sheriff's law enforcement employee under this Article on or
5after January 1, 2011 shall be increased on the January 1 after
6attainment of age 60 by the recipient of the survivor's annuity
7and each January 1 thereafter by 3% or one-half the annual
8unadjusted percentage increase in the consumer price index-u
9for the 12 months ending with the September preceding each
10November 1, whichever is less, of the originally granted
11pension. If the annual unadjusted percentage change in the
12consumer price index-u for a 12-month period ending in
13September is zero or, when compared with the preceding period,
14decreases, then the annuity shall not be increased.
15    (j) For the purposes of this Section, "consumer price
16index-u" means the index published by the Bureau of Labor
17Statistics of the United States Department of Labor that
18measures the average change in prices of goods and services
19purchased by all urban consumers, United States city average,
20all items, 1982-84 = 100. The new amount resulting from each
21annual adjustment shall be determined by the Public Pension
22Division of the Department of Insurance and made available to
23the boards of the pension funds.
24(Source: P.A. 96-961, eff. 7-2-10.)
 
25    Section 99. Effective date. This Act takes effect January

 

 

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11, 2011.".