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| | SB0037 Enrolled | | LRB101 02871 RPS 47879 b |
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| 1 | | AN ACT concerning public employee benefits.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Pension Code is amended by adding |
| 5 | | Section 4-110.2 and by changing Section 4-118 as follows:
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| 6 | | (40 ILCS 5/4-110.2 new) |
| 7 | | Sec. 4-110.2. Secondary employer injury and exposure |
| 8 | | reporting. The fire chief of a secondary employer, as described |
| 9 | | in Section 4-118, shall report any injury, illness, or exposure |
| 10 | | incurred by a secondary employee during his or her employment |
| 11 | | to the primary employer's pension fund within 96 hours from the |
| 12 | | time of the occurrence. The reporting requirements shall be |
| 13 | | consistent with the recommendations found in Chapters 4, 13, |
| 14 | | and 14 of the NFPA 1500 Standard on Fire Department |
| 15 | | Occupational Safety, Health, and Wellness Program.
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| 16 | | (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
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| 17 | | Sec. 4-118. Financing.
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| 18 | | (a) The city council or the board of trustees
of the |
| 19 | | municipality shall annually levy a tax upon all the taxable |
| 20 | | property
of the municipality at the rate on the dollar which |
| 21 | | will produce an amount
which, when added to the deductions from |
| 22 | | the salaries or wages of
firefighters and revenues available |
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| 1 | | from other sources, will equal a sum
sufficient to meet the |
| 2 | | annual actuarial requirements of the pension fund,
as |
| 3 | | determined by an enrolled actuary employed by the Illinois |
| 4 | | Department of
Insurance or by an enrolled actuary retained by |
| 5 | | the pension fund or
municipality. For the purposes of this |
| 6 | | Section, the annual actuarial
requirements of the pension fund |
| 7 | | are equal to (1) the normal cost of the
pension fund, or 17.5% |
| 8 | | of the salaries and wages to be paid to firefighters
for the |
| 9 | | year involved, whichever is greater, plus (2) an annual amount
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| 10 | | sufficient to bring the total assets of the pension fund up to |
| 11 | | 90% of the total actuarial liabilities of the pension fund by |
| 12 | | the end of municipal fiscal year 2040, as annually updated and |
| 13 | | determined by an enrolled actuary employed by the Illinois |
| 14 | | Department of Insurance or by an enrolled actuary retained by |
| 15 | | the pension fund or the municipality. In making these |
| 16 | | determinations, the required minimum employer contribution |
| 17 | | shall be calculated each year as a level percentage of payroll |
| 18 | | over the years remaining up to and including fiscal year 2040 |
| 19 | | and shall be determined under the projected unit credit |
| 20 | | actuarial cost method. The amount
to be applied towards the |
| 21 | | amortization of the unfunded accrued liability in any
year |
| 22 | | shall not be less than the annual amount required to amortize |
| 23 | | the unfunded
accrued liability, including interest, as a level |
| 24 | | percentage of payroll over
the number of years remaining in the |
| 25 | | 40 year amortization period.
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| 26 | | (a-2) A municipality that has established a pension fund |
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| 1 | | under this Article and who employs a full-time firefighter, as |
| 2 | | defined in Section 4-106, shall be deemed a primary employer |
| 3 | | with respect to that full-time firefighter. Any municipality of |
| 4 | | 5,000 or more inhabitants that employs or enrolls a firefighter |
| 5 | | while that firefighter continues to earn service credit as a |
| 6 | | participant in a primary employer's pension fund under this |
| 7 | | Article shall be deemed a secondary employer and such employees |
| 8 | | shall be deemed to be secondary employee firefighters. To |
| 9 | | ensure that the primary employer's pension fund under this |
| 10 | | Article is aware of additional liabilities and risks to which |
| 11 | | firefighters are exposed when performing work as firefighters |
| 12 | | for secondary employers, a secondary employer shall annually |
| 13 | | prepare a report accounting for all hours worked by and wages |
| 14 | | and salaries paid to the secondary employee firefighters it |
| 15 | | receives services from or employs for each fiscal year in which |
| 16 | | such firefighters are employed and transmit a certified copy of |
| 17 | | that report to the primary employer's pension fund and the |
| 18 | | secondary employee firefighter no later than 30 days after the |
| 19 | | end of any fiscal year in which wages were paid to the |
| 20 | | secondary employee firefighters. |
| 21 | | Nothing in this Section shall be construed to allow a |
| 22 | | secondary employee to qualify for benefits or creditable |
| 23 | | service for employment as a firefighter for a secondary |
| 24 | | employer. |
| 25 | | (a-5) For purposes of determining the required employer |
| 26 | | contribution to a pension fund, the value of the pension fund's |
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| 1 | | assets shall be equal to the actuarial value of the pension |
| 2 | | fund'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 |
| 12 | | manner
as the general taxes of the municipality, and shall be |
| 13 | | in addition
to all other taxes now or hereafter authorized to |
| 14 | | be levied upon all
property within the municipality, and in |
| 15 | | addition to the amount authorized
to be levied for general |
| 16 | | purposes, under Section 8-3-1 of the Illinois
Municipal Code or |
| 17 | | under Section 14 of the Fire Protection District Act. The
tax |
| 18 | | shall be forwarded directly to the treasurer of the board |
| 19 | | within 30
business days of receipt by the county
(or, in the |
| 20 | | case of amounts
added to the tax levy under subsection (f), |
| 21 | | used by the municipality to pay the
employer contributions |
| 22 | | required under subsection (b-1) of Section 15-155 of
this |
| 23 | | Code).
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| 24 | | (b-5) If a participating municipality fails to transmit to |
| 25 | | the fund contributions required of it under this Article for |
| 26 | | more than 90 days after the payment of those contributions is |
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| 1 | | due, the fund may, after giving notice to the municipality, |
| 2 | | certify to the State Comptroller the amounts of the delinquent |
| 3 | | payments in accordance with any applicable rules of the |
| 4 | | Comptroller, and the Comptroller must, beginning in fiscal year |
| 5 | | 2016, deduct and remit to the fund the certified amounts or a |
| 6 | | portion of those amounts from the following proportions of |
| 7 | | payments 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 |
| 16 | | State funds to the municipality more than the amount of |
| 17 | | delinquent payments certified to the State Comptroller by the |
| 18 | | fund. |
| 19 | | (c) The board shall make available to the membership and |
| 20 | | the general public
for inspection and copying at reasonable |
| 21 | | times the most recent Actuarial
Valuation Balance Sheet and Tax |
| 22 | | Levy Requirement issued to the fund by the
Department of |
| 23 | | Insurance.
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| 24 | | (d) The firefighters' pension fund shall consist of the |
| 25 | | following moneys
which shall be set apart by the treasurer of |
| 26 | | the municipality: (1) all
moneys derived from the taxes levied |
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| 1 | | hereunder; (2) contributions
by firefighters as provided under |
| 2 | | Section 4-118.1; (3) all
rewards in money, fees, gifts, and |
| 3 | | emoluments that may be paid or given
for or on account of |
| 4 | | extraordinary service by the fire department or any
member |
| 5 | | thereof, except when allowed to be retained by competitive |
| 6 | | awards;
and (4) any money, real estate or personal property |
| 7 | | received by the board.
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| 8 | | (e) For the purposes of this Section, "enrolled actuary" |
| 9 | | means an actuary:
(1) who is a member of the Society of |
| 10 | | Actuaries or the American
Academy of Actuaries; and (2) who is |
| 11 | | enrolled under Subtitle
C of Title III of the Employee |
| 12 | | Retirement Income Security Act of 1974, or
who has been engaged |
| 13 | | in providing actuarial services to one or more public
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| 14 | | retirement systems for a period of at least 3 years as of July |
| 15 | | 1, 1983.
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| 16 | | (f) The corporate authorities of a municipality that |
| 17 | | employs a person
who is described in subdivision (d) of Section |
| 18 | | 4-106 may add to the tax levy
otherwise provided for in this |
| 19 | | Section an amount equal to the projected cost of
the employer |
| 20 | | contributions required to be paid by the municipality to the |
| 21 | | State
Universities Retirement System under subsection (b-1) of |
| 22 | | Section 15-155 of this
Code. |
| 23 | | (g) The Commission on Government Forecasting and
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| 24 | | Accountability shall conduct a study of all funds established
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| 25 | | under this Article and shall report its findings to the General
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| 26 | | Assembly on or before January 1, 2013. To the fullest extent |
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| 1 | | possible, the study shall include, but not be limited to, the |
| 2 | | following: |
| 3 | | (1) fund balances; |
| 4 | | (2) historical employer contribution rates for each
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| 5 | | fund; |
| 6 | | (3) the actuarial formulas used as a basis for employer
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| 7 | | contributions, including the actual assumed rate of return
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| 8 | | for each year, for each fund; |
| 9 | | (4) available contribution funding sources; |
| 10 | | (5) the impact of any revenue limitations caused by
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| 11 | | PTELL and employer home rule or non-home rule status; and |
| 12 | | (6) existing statutory funding compliance procedures
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| 13 | | and funding enforcement mechanisms for all municipal
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| 14 | | pension funds.
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| 15 | | (Source: P.A. 99-8, eff. 7-9-15.)
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| 16 | | Section 90. The State Mandates Act is amended by adding |
| 17 | | Section 8.43 as follows:
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| 18 | | (30 ILCS 805/8.43 new) |
| 19 | | Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8 |
| 20 | | of this Act, no reimbursement by the State is required for the |
| 21 | | implementation of any mandate created by this amendatory Act of |
| 22 | | the 101st General Assembly.
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| 23 | | Section 99. Effective date. This Act takes effect upon |
| 24 | | becoming law.
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