(40 ILCS 5/4-106.1)
(from Ch. 108 1/2, par. 4-106.1)
Discontinuation of fire protection district; annexation
to fire protection district; dissolution and reestablishment of inactive firefighters' pension funds.
(a) Whenever a fire protection district which has established
a pension fund under this Article is discontinued under "An Act in
Relation to Fire Protection Districts", and the municipality assuming
the obligations of the district is required to and has established
a Firefighters' Pension Fund under this Article, the assets of the fund
established by the district shall be transferred to the "Board of Trustees
of the Firefighters Pension Fund" of the municipality. The Firefighter's
Pension Fund of the municipality shall assume all accrued liabilities of
the district's pension fund, and all accrued rights, benefits and future
expectancies of the members, retired employees and beneficiaries of the
district's fund shall remain unimpaired.
(b) If a municipal fire department for which a pension fund has been
established under this Article is discontinued and the affected territory
is annexed by a fire protection district, and the fire protection district
is required to and has established a firefighters' pension fund under this
Article, then the assets of the firefighters' pension fund established by the
municipality shall be transferred to the board of trustees of the pension fund
of the fire protection district. The firefighters' pension fund of the fire
protection district shall assume all liabilities of the municipality's
firefighters' pension fund, and all of the accrued rights, benefits, and
future expectancies of the members, retired employees, and beneficiaries of
the municipality's firefighters' pension fund shall remain unimpaired.
(c) The corporate authorities of a municipality for which a pension fund has been established under this Article may, by resolution or ordinance, dissolve the fund if an independent auditor has certified to the authorities that the fund has no liabilities, participants, or beneficiaries entitled to benefits, and the authorities shall reestablish the fund if a firefighter of the municipality seeks to establish service credit in the fund or if reestablishment of the fund is required upon a former firefighter's reinstatement of creditable service under subsection (g) of Section 4-109.3 of this Code.
The Public Pension Division of the Department of Insurance shall adopt rules regarding the process and procedures for (i) dissolving a pension fund under this Section and (ii) redistributing assets and reestablishing the fund if reestablishment of the fund is necessary.
(Source: P.A. 97-99, eff. 1-1-12.)