Public Act 101-0522
 
SB0037 EnrolledLRB101 02871 RPS 47879 b


  
    AN ACT concerning public employee benefits. 
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    Section 5. The Illinois Pension Code is amended by adding 
Section 4-110.2 and  by changing Section 4-118 as follows:
 
    (40 ILCS 5/4-110.2 new)
    Sec. 4-110.2. Secondary employer injury and exposure 
reporting. The fire chief of a secondary employer, as described 
in Section 4-118, shall report any injury, illness, or exposure 
incurred by a secondary employee during his or her employment 
to the primary employer's pension fund within 96 hours from the 
time of the occurrence. The reporting requirements shall be 
consistent with the recommendations found in Chapters 4, 13, 
and 14 of the NFPA 1500 Standard on Fire Department 
Occupational Safety, Health, and Wellness Program.
 



    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)



    Sec. 4-118. Financing. 

    (a) The city council or the board of trustees
of the 
municipality shall annually levy a tax upon all the taxable 
property
of the municipality at the rate on the dollar which 
will produce an amount
which, when added to the deductions from 
the salaries or wages of
firefighters and revenues available 
from other sources, will equal a sum
sufficient to meet the 
annual actuarial requirements of the pension fund,
as 
determined by an enrolled actuary employed by the Illinois 
Department of
Insurance or by an enrolled actuary retained by 
the pension fund or
municipality.  For the purposes of this 
Section, the annual actuarial
requirements of the pension fund 
are equal to (1) the normal cost of the
pension fund, or 17.5% 
of the salaries and wages to be paid to firefighters
for the 
year involved, whichever is greater, plus (2) an annual amount

sufficient to bring the total assets of the pension fund up to 
90% of the total actuarial liabilities of the pension fund by 
the end of municipal fiscal year 2040, as annually updated and 
determined by an enrolled actuary employed by the Illinois 
Department of Insurance or by an enrolled actuary retained by 
the pension fund or the municipality. In making these 
determinations, the required minimum employer contribution 
shall be calculated each year as a level percentage of payroll 
over the years remaining up to and including fiscal year 2040 
and shall be determined under the projected unit credit 
actuarial cost method.  The amount
to be applied towards the 
amortization of the unfunded accrued liability in any
year 
shall not be less than the annual amount required to amortize 
the unfunded
accrued liability, including interest, as a level 
percentage of payroll over
the number of years remaining in the 
40 year amortization period.

    (a-2) A municipality that has established a pension fund 
under this Article and who employs a full-time firefighter, as 
defined in Section 4-106, shall be deemed a primary employer 
with respect to that full-time firefighter. Any municipality of 
5,000 or more inhabitants that employs or enrolls a firefighter 
while that firefighter continues to earn service credit as a 
participant in a primary employer's pension fund under this 
Article shall be deemed a secondary employer and such employees 
shall be deemed to be secondary employee firefighters. To 
ensure that the primary employer's pension fund under this 
Article is aware of additional liabilities and risks to which 
firefighters are exposed when performing work as firefighters 
for secondary employers, a secondary employer shall annually 
prepare a report accounting for all hours worked by and wages 
and salaries paid to the secondary employee firefighters it 
receives services from or employs for each fiscal year in which 
such firefighters are employed and transmit a certified copy of 
that report to the primary employer's pension fund and the 
secondary employee firefighter no later than 30 days after the 
end of any fiscal year in which wages were paid to the 
secondary employee firefighters. 
    Nothing in this Section shall be construed to allow a 
secondary employee to qualify for benefits or creditable 
service for employment as a firefighter for a secondary 
employer.
    (a-5) For purposes of determining the required employer 
contribution to a pension fund, the value of the pension fund's 
assets shall be equal to the actuarial value of the pension 
fund's assets, which shall be calculated as follows:
        (1) On March 30, 2011, the actuarial value of a pension 
    fund's assets shall be equal to the market value of the 
    assets as of that date.
        (2) In determining the actuarial value of the pension 
    fund's assets for fiscal years after March 30, 2011, any 
    actuarial gains or losses from investment return incurred 
    in a fiscal year shall be recognized in equal annual 
    amounts over the 5-year period following that fiscal year. 
    (b) The tax shall be levied and collected in the same 
manner
as the general taxes of the municipality, and shall be 
in addition
to all other taxes now or hereafter authorized to 
be levied upon all
property within the municipality, and in 
addition to the amount authorized
to be levied for general 
purposes, under Section 8-3-1 of the Illinois
Municipal Code or 
under Section 14 of the Fire Protection District Act.  The
tax 
shall be forwarded directly to the treasurer of the board 
within 30
business days of receipt by the county

(or, in the 
case of amounts
added to the tax levy under subsection (f), 
used by the municipality to pay the
employer contributions 
required under subsection (b-1) of Section 15-155 of
this 
Code).

    (b-5) If a participating municipality fails to transmit to 
the fund contributions required of it under this Article for 
more than 90 days after the payment of those contributions is 
due, the fund may, after giving notice to the municipality, 
certify to the State Comptroller the amounts of the delinquent 
payments in accordance with any applicable rules of the 
Comptroller, and the Comptroller must, beginning in fiscal year 
2016, deduct  and remit to the fund the certified amounts  or a 
portion of those amounts from the following proportions of 
payments of State funds to the municipality:
        (1) in fiscal year 2016, one-third of the total amount 
    of any payments of State funds to the municipality;
        (2) in fiscal year 2017, two-thirds of the total amount 
    of any payments of State funds to the municipality; and
        (3) in fiscal year 2018 and each  fiscal year 
    thereafter, the total amount of any payments of State funds 
    to the municipality. 
    The State Comptroller may not deduct from any payments of 
State funds to the municipality more than the amount of 
delinquent payments certified to the State Comptroller by the 
fund. 
    (c) The board shall make available to the membership and 
the general public
for inspection and copying at reasonable 
times the most recent Actuarial
Valuation Balance Sheet and Tax 
Levy Requirement issued to the fund by the
Department of 
Insurance.

    (d) The firefighters' pension fund shall consist of the 
following moneys
which shall be set apart by the treasurer of 
the municipality: (1) all
moneys derived from the taxes levied 
hereunder; (2) contributions
by firefighters as provided under 
Section 4-118.1; (3) all
rewards in money, fees, gifts, and 
emoluments that may be paid or given
for or on account of 
extraordinary service by the fire department or any
member 
thereof, except when allowed to be retained by competitive 
awards;
and (4) any money, real estate or personal property 
received by the board.

    (e) For the purposes of this Section, "enrolled actuary" 
means an actuary:
(1) who is a member of the Society of 
Actuaries or the American
Academy of Actuaries; and (2) who is 
enrolled under Subtitle
C of Title III of the Employee 
Retirement Income Security Act of 1974, or
who has been engaged 
in providing actuarial services to one or more public

retirement systems for a period of at least 3 years as of July 
1, 1983.

    (f) The corporate authorities of a municipality that 
employs a person
who is described in subdivision (d) of Section 
4-106 may add to the tax levy
otherwise provided for in this 
Section an amount equal to the projected cost of
the employer 
contributions required to be paid by the municipality to the 
State
Universities Retirement System under subsection (b-1) of 
Section 15-155 of this
Code.
    (g) The Commission on Government Forecasting and

Accountability shall conduct a study of all funds established

under this Article and shall report its findings to the General

Assembly on or before January 1, 2013.  To the fullest extent 
possible, the study shall include, but not be limited to, the 
following:
        (1) fund balances;
        (2) historical employer contribution rates for each

    fund;
        (3) the actuarial formulas used as a basis for employer

    contributions, including the actual assumed rate of return

    for each year, for each fund;
        (4) available contribution funding sources;
        (5) the impact of any revenue limitations caused by

    PTELL and employer home rule or non-home rule status; and
        (6) existing statutory funding compliance procedures

    and funding enforcement mechanisms for all municipal

    pension funds. 

(Source: P.A. 99-8, eff. 7-9-15.)

 
    Section 90. The State Mandates Act is amended by adding 
Section 8.43 as follows:
 
    (30 ILCS 805/8.43 new)
    Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8 
of this Act, no reimbursement by the State is required for the 
implementation of any mandate created by this amendatory Act of 
the 101st General Assembly.
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.