Bill Text: IL SB0037 | 2019-2020 | 101st General Assembly | Enrolled

Bill Title: Amends the Downstate Firefighter Article of the Illinois Pension Code. Requires a unit of local government of 5,000 or more inhabitants that employs a firefighter who is a full-time firefighter in a different downstate firefighter pension fund to make specified contributions to that downstate firefighter pension fund. Establishes reporting requirements. Authorizes the State comptroller to intercept State funds in the event the unit of local government does not make its required contribution to the primary employer's downstate pension fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 13-4)

Status: (Enrolled) 2019-06-28 - Sent to the Governor [SB0037 Detail]

Download: Illinois-2019-SB0037-Enrolled.html

SB0037 EnrolledLRB101 02871 RPS 47879 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by adding
5Section 4-110.2 and by changing Section 4-118 as follows:
6 (40 ILCS 5/4-110.2 new)
7 Sec. 4-110.2. Secondary employer injury and exposure
8reporting. The fire chief of a secondary employer, as described
9in Section 4-118, shall report any injury, illness, or exposure
10incurred by a secondary employee during his or her employment
11to the primary employer's pension fund within 96 hours from the
12time of the occurrence. The reporting requirements shall be
13consistent with the recommendations found in Chapters 4, 13,
14and 14 of the NFPA 1500 Standard on Fire Department
15Occupational Safety, Health, and Wellness Program.
16 (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
17 Sec. 4-118. Financing.
18 (a) The city council or the board of trustees of the
19municipality shall annually levy a tax upon all the taxable
20property of the municipality at the rate on the dollar which
21will produce an amount which, when added to the deductions from
22the salaries or wages of firefighters and revenues available

SB0037 Enrolled- 2 -LRB101 02871 RPS 47879 b
1from other sources, will equal a sum sufficient to meet the
2annual actuarial requirements of the pension fund, as
3determined by an enrolled actuary employed by the Illinois
4Department of Insurance or by an enrolled actuary retained by
5the pension fund or municipality. For the purposes of this
6Section, the annual actuarial requirements of the pension fund
7are equal to (1) the normal cost of the pension fund, or 17.5%
8of the salaries and wages to be paid to firefighters for the
9year involved, whichever is greater, plus (2) an annual amount
10sufficient to bring the total assets of the pension fund up to
1190% of the total actuarial liabilities of the pension fund by
12the end of municipal fiscal year 2040, as annually updated and
13determined by an enrolled actuary employed by the Illinois
14Department of Insurance or by an enrolled actuary retained by
15the pension fund or the municipality. In making these
16determinations, the required minimum employer contribution
17shall be calculated each year as a level percentage of payroll
18over the years remaining up to and including fiscal year 2040
19and shall be determined under the projected unit credit
20actuarial cost method. The amount to be applied towards the
21amortization of the unfunded accrued liability in any year
22shall not be less than the annual amount required to amortize
23the unfunded accrued liability, including interest, as a level
24percentage of payroll over the number of years remaining in the
2540 year amortization period.
26 (a-2) A municipality that has established a pension fund

SB0037 Enrolled- 3 -LRB101 02871 RPS 47879 b
1under this Article and who employs a full-time firefighter, as
2defined in Section 4-106, shall be deemed a primary employer
3with respect to that full-time firefighter. Any municipality of
45,000 or more inhabitants that employs or enrolls a firefighter
5while that firefighter continues to earn service credit as a
6participant in a primary employer's pension fund under this
7Article shall be deemed a secondary employer and such employees
8shall be deemed to be secondary employee firefighters. To
9ensure that the primary employer's pension fund under this
10Article is aware of additional liabilities and risks to which
11firefighters are exposed when performing work as firefighters
12for secondary employers, a secondary employer shall annually
13prepare a report accounting for all hours worked by and wages
14and salaries paid to the secondary employee firefighters it
15receives services from or employs for each fiscal year in which
16such firefighters are employed and transmit a certified copy of
17that report to the primary employer's pension fund and the
18secondary employee firefighter no later than 30 days after the
19end of any fiscal year in which wages were paid to the
20secondary employee firefighters.
21 Nothing in this Section shall be construed to allow a
22secondary employee to qualify for benefits or creditable
23service for employment as a firefighter for a secondary
25 (a-5) For purposes of determining the required employer
26contribution to a pension fund, the value of the pension fund's

SB0037 Enrolled- 4 -LRB101 02871 RPS 47879 b
1assets shall be equal to the actuarial value of the pension
2fund's assets, which shall be calculated as follows:
3 (1) On March 30, 2011, the actuarial value of a pension
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 pension
7 fund's assets for fiscal years after March 30, 2011, any
8 actuarial gains or losses from investment return incurred
9 in a fiscal year shall be recognized in equal annual
10 amounts over the 5-year period following that fiscal year.
11 (b) The tax shall be levied and collected in the same
12manner as the general taxes of the municipality, and shall be
13in addition to all other taxes now or hereafter authorized to
14be levied upon all property within the municipality, and in
15addition to the amount authorized to be levied for general
16purposes, under Section 8-3-1 of the Illinois Municipal Code or
17under Section 14 of the Fire Protection District Act. The tax
18shall be forwarded directly to the treasurer of the board
19within 30 business days of receipt by the county (or, in the
20case of amounts added to the tax levy under subsection (f),
21used by the municipality to pay the employer contributions
22required under subsection (b-1) of Section 15-155 of this
24 (b-5) If a participating municipality fails to transmit to
25the fund contributions required of it under this Article for
26more than 90 days after the payment of those contributions is

SB0037 Enrolled- 5 -LRB101 02871 RPS 47879 b
1due, the fund may, after giving notice to the municipality,
2certify to the State Comptroller the amounts of the delinquent
3payments in accordance with any applicable rules of the
4Comptroller, and the Comptroller must, beginning in fiscal year
52016, deduct and remit to the fund the certified amounts or a
6portion of those amounts from the following proportions of
7payments of State funds to the municipality:
8 (1) in fiscal year 2016, one-third of the total amount
9 of any payments of State funds to the municipality;
10 (2) in fiscal year 2017, two-thirds of the total amount
11 of any payments of State funds to the municipality; and
12 (3) in fiscal year 2018 and each fiscal year
13 thereafter, the total amount of any payments of State funds
14 to the municipality.
15 The State Comptroller may not deduct from any payments of
16State funds to the municipality more than the amount of
17delinquent payments certified to the State Comptroller by the
19 (c) The board shall make available to the membership and
20the general public for inspection and copying at reasonable
21times the most recent Actuarial Valuation Balance Sheet and Tax
22Levy Requirement issued to the fund by the Department of
24 (d) The firefighters' pension fund shall consist of the
25following moneys which shall be set apart by the treasurer of
26the municipality: (1) all moneys derived from the taxes levied

SB0037 Enrolled- 6 -LRB101 02871 RPS 47879 b
1hereunder; (2) contributions by firefighters as provided under
2Section 4-118.1; (3) all rewards in money, fees, gifts, and
3emoluments that may be paid or given for or on account of
4extraordinary service by the fire department or any member
5thereof, except when allowed to be retained by competitive
6awards; and (4) any money, real estate or personal property
7received by the board.
8 (e) For the purposes of this Section, "enrolled actuary"
9means an actuary: (1) who is a member of the Society of
10Actuaries or the American Academy of Actuaries; and (2) who is
11enrolled under Subtitle C of Title III of the Employee
12Retirement Income Security Act of 1974, or who has been engaged
13in providing actuarial services to one or more public
14retirement systems for a period of at least 3 years as of July
151, 1983.
16 (f) The corporate authorities of a municipality that
17employs a person who is described in subdivision (d) of Section
184-106 may add to the tax levy otherwise provided for in this
19Section an amount equal to the projected cost of the employer
20contributions required to be paid by the municipality to the
21State Universities Retirement System under subsection (b-1) of
22Section 15-155 of this Code.
23 (g) The Commission on Government Forecasting and
24Accountability shall conduct a study of all funds established
25under this Article and shall report its findings to the General
26Assembly on or before January 1, 2013. To the fullest extent

SB0037 Enrolled- 7 -LRB101 02871 RPS 47879 b
1possible, the study shall include, but not be limited to, the
3 (1) fund balances;
4 (2) historical employer contribution rates for each
5 fund;
6 (3) the actuarial formulas used as a basis for employer
7 contributions, including the actual assumed rate of return
8 for each year, for each fund;
9 (4) available contribution funding sources;
10 (5) the impact of any revenue limitations caused by
11 PTELL and employer home rule or non-home rule status; and
12 (6) existing statutory funding compliance procedures
13 and funding enforcement mechanisms for all municipal
14 pension funds.
15(Source: P.A. 99-8, eff. 7-9-15.)
16 Section 90. The State Mandates Act is amended by adding
17Section 8.43 as follows:
18 (30 ILCS 805/8.43 new)
19 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
20of this Act, no reimbursement by the State is required for the
21implementation of any mandate created by this amendatory Act of
22the 101st General Assembly.
23 Section 99. Effective date. This Act takes effect upon
24becoming law.