Bill Text: IL HB1566 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Illinois Pension Code. Merges all Article 3 police officers' pension funds and Article 4 firefighters' pension funds into the Illinois Municipal Retirement Fund (IMRF) on January 1, 2021. Creates a Transition Board, which is responsible for planning, overseeing, and administering the consolidation. Authorizes the Transition Board to undertake numerous activities necessary for the consolidation, including making arrangements for the transfer of assets and liabilities and for making recommendations to IMRF for an appropriate system of determining, administering, receiving, and enforcing the required municipal contributions to the Fund. Makes conforming and other changes. Provides that a person first employed as a firefighter or police officer on or after January 1, 2021 shall participate and earn benefits in IMRF as an employee under the IMRF Article (rather than participating and earning benefits under the Downstate Police or Downstate Firefighter Articles). Amends the Property Tax Extension Limitation Law (PTELL) of the Property Tax Code to exclude from the definition of "aggregate extension" special purpose extensions made for contributions to IMRF for benefits under the downstate police and downstate firefighter Articles. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, except that certain changes to the Illinois Pension Code and the Property Tax Extension Limitation Law of the Property Tax Code take effect January 1, 2021.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB1566 Detail]

Download: Illinois-2019-HB1566-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1566

Introduced , by Rep. Jim Durkin

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Pension Code. Merges all Article 3 police officers' pension funds and Article 4 firefighters' pension funds into the Illinois Municipal Retirement Fund (IMRF) on January 1, 2021. Creates a Transition Board, which is responsible for planning, overseeing, and administering the consolidation. Authorizes the Transition Board to undertake numerous activities necessary for the consolidation, including making arrangements for the transfer of assets and liabilities and for making recommendations to IMRF for an appropriate system of determining, administering, receiving, and enforcing the required municipal contributions to the Fund. Makes conforming and other changes. Provides that a person first employed as a firefighter or police officer on or after January 1, 2021 shall participate and earn benefits in IMRF as an employee under the IMRF Article (rather than participating and earning benefits under the Downstate Police or Downstate Firefighter Articles). Amends the Property Tax Extension Limitation Law (PTELL) of the Property Tax Code to exclude from the definition of "aggregate extension" special purpose extensions made for contributions to IMRF for benefits under the downstate police and downstate firefighter Articles. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, except that certain changes to the Illinois Pension Code and the Property Tax Extension Limitation Law of the Property Tax Code take effect January 1, 2021.
LRB101 06694 RPS 51721 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB1566LRB101 06694 RPS 51721 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 Property Tax Code is amended by changing
5Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10 "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13 "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17 "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20 "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

HB1566- 2 -LRB101 06694 RPS 51721 b
1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13 "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

HB1566- 3 -LRB101 06694 RPS 51721 b
1referendum; (e) made for any taxing district to pay interest or
2principal on revenue bonds issued before October 1, 1991 for
3payment of which a property tax levy or the full faith and
4credit of the unit of local government is pledged; however, a
5tax for the payment of interest or principal on those bonds
6shall be made only after the governing body of the unit of
7local government finds that all other sources for payment are
8insufficient to make those payments; (f) made for payments
9under a building commission lease when the lease payments are
10for the retirement of bonds issued by the commission before
11October 1, 1991, to pay for the building project; (g) made for
12payments due under installment contracts entered into before
13October 1, 1991; (h) made for payments of principal and
14interest on bonds issued under the Metropolitan Water
15Reclamation District Act to finance construction projects
16initiated before October 1, 1991; (i) made for payments of
17principal and interest on limited bonds, as defined in Section
183 of the Local Government Debt Reform Act, in an amount not to
19exceed the debt service extension base less the amount in items
20(b), (c), (e), and (h) of this definition for non-referendum
21obligations, except obligations initially issued pursuant to
22referendum; (j) made for payments of principal and interest on
23bonds issued under Section 15 of the Local Government Debt
24Reform Act; (k) made by a school district that participates in
25the Special Education District of Lake County, created by
26special education joint agreement under Section 10-22.31 of the

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1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for persons with
8disabilities under Section 5-8 of the Park District Code or
9Section 11-95-14 of the Illinois Municipal Code; (m) made for
10temporary relocation loan repayment purposes pursuant to
11Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
12payment of principal and interest on any bonds issued under the
13authority of Section 17-2.2d of the School Code; (o) made
14before January 1, 2021 for contributions to a firefighter's
15pension fund created under Article 4 of the Illinois Pension
16Code, to the extent of the amount certified under item (5) of
17Section 4-134 of the Illinois Pension Code; and (p) made for
18road purposes in the first year after a township assumes the
19rights, powers, duties, assets, property, liabilities,
20obligations, and responsibilities of a road district abolished
21under the provisions of Section 6-133 of the Illinois Highway
22Code; and (q) made under Articles 3 and 4 of the Illinois
23Pension Code for contributions to the Illinois Municipal
24Retirement Fund.
25 "Aggregate extension" for the taxing districts to which
26this Law did not apply before the 1995 levy year (except taxing

HB1566- 5 -LRB101 06694 RPS 51721 b
1districts subject to this Law in accordance with Section
218-213) means the annual corporate extension for the taxing
3district and those special purpose extensions that are made
4annually for the taxing district, excluding special purpose
5extensions: (a) made for the taxing district to pay interest or
6principal on general obligation bonds that were approved by
7referendum; (b) made for any taxing district to pay interest or
8principal on general obligation bonds issued before March 1,
91995; (c) made for any taxing district to pay interest or
10principal on bonds issued to refund or continue to refund those
11bonds issued before March 1, 1995; (d) made for any taxing
12district to pay interest or principal on bonds issued to refund
13or continue to refund bonds issued after March 1, 1995 that
14were approved by referendum; (e) made for any taxing district
15to pay interest or principal on revenue bonds issued before
16March 1, 1995 for payment of which a property tax levy or the
17full faith and credit of the unit of local government is
18pledged; however, a tax for the payment of interest or
19principal on those bonds shall be made only after the governing
20body of the unit of local government finds that all other
21sources for payment are insufficient to make those payments;
22(f) made for payments under a building commission lease when
23the lease payments are for the retirement of bonds issued by
24the commission before March 1, 1995 to pay for the building
25project; (g) made for payments due under installment contracts
26entered into before March 1, 1995; (h) made for payments of

HB1566- 6 -LRB101 06694 RPS 51721 b
1principal and interest on bonds issued under the Metropolitan
2Water Reclamation District Act to finance construction
3projects initiated before October 1, 1991; (h-4) made for
4stormwater management purposes by the Metropolitan Water
5Reclamation District of Greater Chicago under Section 12 of the
6Metropolitan Water Reclamation District Act; (i) made for
7payments of principal and interest on limited bonds, as defined
8in Section 3 of the Local Government Debt Reform Act, in an
9amount not to exceed the debt service extension base less the
10amount in items (b), (c), and (e) of this definition for
11non-referendum obligations, except obligations initially
12issued pursuant to referendum and bonds described in subsection
13(h) of this definition; (j) made for payments of principal and
14interest on bonds issued under Section 15 of the Local
15Government Debt Reform Act; (k) made for payments of principal
16and interest on bonds authorized by Public Act 88-503 and
17issued under Section 20a of the Chicago Park District Act for
18aquarium or museum projects; (l) made for payments of principal
19and interest on bonds authorized by Public Act 87-1191 or
2093-601 and (i) issued pursuant to Section 21.2 of the Cook
21County Forest Preserve District Act, (ii) issued under Section
2242 of the Cook County Forest Preserve District Act for
23zoological park projects, or (iii) issued under Section 44.1 of
24the Cook County Forest Preserve District Act for botanical
25gardens projects; (m) made pursuant to Section 34-53.5 of the
26School Code, whether levied annually or not; (n) made to fund

HB1566- 7 -LRB101 06694 RPS 51721 b
1expenses of providing joint recreational programs for persons
2with disabilities under Section 5-8 of the Park District Code
3or Section 11-95-14 of the Illinois Municipal Code; (o) made by
4the Chicago Park District for recreational programs for persons
5with disabilities under subsection (c) of Section 7.06 of the
6Chicago Park District Act; (p) made before January 1, 2021 for
7contributions to a firefighter's pension fund created under
8Article 4 of the Illinois Pension Code, to the extent of the
9amount certified under item (5) of Section 4-134 of the
10Illinois Pension Code; (q) made by Ford Heights School District
11169 under Section 17-9.02 of the School Code; and (r) made for
12the purpose of making employer contributions to the Public
13School Teachers' Pension and Retirement Fund of Chicago under
14Section 34-53 of the School Code; and (s) made under Articles 3
15and 4 of the Illinois Pension Code for contributions to the
16Illinois Municipal Retirement Fund.
17 "Aggregate extension" for all taxing districts to which
18this Law applies in accordance with Section 18-213, except for
19those taxing districts subject to paragraph (2) of subsection
20(e) of Section 18-213, means the annual corporate extension for
21the taxing district and those special purpose extensions that
22are made annually for the taxing district, excluding special
23purpose extensions: (a) made for the taxing district to pay
24interest or principal on general obligation bonds that were
25approved by referendum; (b) made for any taxing district to pay
26interest or principal on general obligation bonds issued before

HB1566- 8 -LRB101 06694 RPS 51721 b
1the date on which the referendum making this Law applicable to
2the taxing district is held; (c) made for any taxing district
3to pay interest or principal on bonds issued to refund or
4continue to refund those bonds issued before the date on which
5the referendum making this Law applicable to the taxing
6district is held; (d) made for any taxing district to pay
7interest or principal on bonds issued to refund or continue to
8refund bonds issued after the date on which the referendum
9making this Law applicable to the taxing district is held if
10the bonds were approved by referendum after the date on which
11the referendum making this Law applicable to the taxing
12district is held; (e) made for any taxing district to pay
13interest or principal on revenue bonds issued before the date
14on which the referendum making this Law applicable to the
15taxing district is held for payment of which a property tax
16levy or the full faith and credit of the unit of local
17government is pledged; however, a tax for the payment of
18interest or principal on those bonds shall be made only after
19the governing body of the unit of local government finds that
20all other sources for payment are insufficient to make those
21payments; (f) made for payments under a building commission
22lease when the lease payments are for the retirement of bonds
23issued by the commission before the date on which the
24referendum making this Law applicable to the taxing district is
25held to pay for the building project; (g) made for payments due
26under installment contracts entered into before the date on

HB1566- 9 -LRB101 06694 RPS 51721 b
1which the referendum making this Law applicable to the taxing
2district is held; (h) made for payments of principal and
3interest on limited bonds, as defined in Section 3 of the Local
4Government Debt Reform Act, in an amount not to exceed the debt
5service extension base less the amount in items (b), (c), and
6(e) of this definition for non-referendum obligations, except
7obligations initially issued pursuant to referendum; (i) made
8for payments of principal and interest on bonds issued under
9Section 15 of the Local Government Debt Reform Act; (j) made
10for a qualified airport authority to pay interest or principal
11on general obligation bonds issued for the purpose of paying
12obligations due under, or financing airport facilities
13required to be acquired, constructed, installed or equipped
14pursuant to, contracts entered into before March 1, 1996 (but
15not including any amendments to such a contract taking effect
16on or after that date); (k) made to fund expenses of providing
17joint recreational programs for persons with disabilities
18under Section 5-8 of the Park District Code or Section 11-95-14
19of the Illinois Municipal Code; (l) made before January 1, 2021
20for contributions to a firefighter's pension fund created under
21Article 4 of the Illinois Pension Code, to the extent of the
22amount certified under item (5) of Section 4-134 of the
23Illinois Pension Code; and (m) made for the taxing district to
24pay interest or principal on general obligation bonds issued
25pursuant to Section 19-3.10 of the School Code; and (n) made
26under Articles 3 and 4 of the Illinois Pension Code for

HB1566- 10 -LRB101 06694 RPS 51721 b
1contributions to the Illinois Municipal Retirement Fund.
2 "Aggregate extension" for all taxing districts to which
3this Law applies in accordance with paragraph (2) of subsection
4(e) of Section 18-213 means the annual corporate extension for
5the taxing district and those special purpose extensions that
6are made annually for the taxing district, excluding special
7purpose extensions: (a) made for the taxing district to pay
8interest or principal on general obligation bonds that were
9approved by referendum; (b) made for any taxing district to pay
10interest or principal on general obligation bonds issued before
11the effective date of this amendatory Act of 1997; (c) made for
12any taxing district to pay interest or principal on bonds
13issued to refund or continue to refund those bonds issued
14before the effective date of this amendatory Act of 1997; (d)
15made for any taxing district to pay interest or principal on
16bonds issued to refund or continue to refund bonds issued after
17the effective date of this amendatory Act of 1997 if the bonds
18were approved by referendum after the effective date of this
19amendatory Act of 1997; (e) made for any taxing district to pay
20interest or principal on revenue bonds issued before the
21effective date of this amendatory Act of 1997 for payment of
22which a property tax levy or the full faith and credit of the
23unit of local government is pledged; however, a tax for the
24payment of interest or principal on those bonds shall be made
25only after the governing body of the unit of local government
26finds that all other sources for payment are insufficient to

HB1566- 11 -LRB101 06694 RPS 51721 b
1make those payments; (f) made for payments under a building
2commission lease when the lease payments are for the retirement
3of bonds issued by the commission before the effective date of
4this amendatory Act of 1997 to pay for the building project;
5(g) made for payments due under installment contracts entered
6into before the effective date of this amendatory Act of 1997;
7(h) made for payments of principal and interest on limited
8bonds, as defined in Section 3 of the Local Government Debt
9Reform Act, in an amount not to exceed the debt service
10extension base less the amount in items (b), (c), and (e) of
11this definition for non-referendum obligations, except
12obligations initially issued pursuant to referendum; (i) made
13for payments of principal and interest on bonds issued under
14Section 15 of the Local Government Debt Reform Act; (j) made
15for a qualified airport authority to pay interest or principal
16on general obligation bonds issued for the purpose of paying
17obligations due under, or financing airport facilities
18required to be acquired, constructed, installed or equipped
19pursuant to, contracts entered into before March 1, 1996 (but
20not including any amendments to such a contract taking effect
21on or after that date); (k) made to fund expenses of providing
22joint recreational programs for persons with disabilities
23under Section 5-8 of the Park District Code or Section 11-95-14
24of the Illinois Municipal Code; and (l) made before January 1,
252021 for contributions to a firefighter's pension fund created
26under Article 4 of the Illinois Pension Code, to the extent of

HB1566- 12 -LRB101 06694 RPS 51721 b
1the amount certified under item (5) of Section 4-134 of the
2Illinois Pension Code; and (m) made under Articles 3 and 4 of
3the Illinois Pension Code for contributions to the Illinois
4Municipal Retirement Fund.
5 "Debt service extension base" means an amount equal to that
6portion of the extension for a taxing district for the 1994
7levy year, or for those taxing districts subject to this Law in
8accordance with Section 18-213, except for those subject to
9paragraph (2) of subsection (e) of Section 18-213, for the levy
10year in which the referendum making this Law applicable to the
11taxing district is held, or for those taxing districts subject
12to this Law in accordance with paragraph (2) of subsection (e)
13of Section 18-213 for the 1996 levy year, constituting an
14extension for payment of principal and interest on bonds issued
15by the taxing district without referendum, but not including
16excluded non-referendum bonds. For park districts (i) that were
17first subject to this Law in 1991 or 1995 and (ii) whose
18extension for the 1994 levy year for the payment of principal
19and interest on bonds issued by the park district without
20referendum (but not including excluded non-referendum bonds)
21was less than 51% of the amount for the 1991 levy year
22constituting an extension for payment of principal and interest
23on bonds issued by the park district without referendum (but
24not including excluded non-referendum bonds), "debt service
25extension base" means an amount equal to that portion of the
26extension for the 1991 levy year constituting an extension for

HB1566- 13 -LRB101 06694 RPS 51721 b
1payment of principal and interest on bonds issued by the park
2district without referendum (but not including excluded
3non-referendum bonds). A debt service extension base
4established or increased at any time pursuant to any provision
5of this Law, except Section 18-212, shall be increased each
6year commencing with the later of (i) the 2009 levy year or
7(ii) the first levy year in which this Law becomes applicable
8to the taxing district, by the lesser of 5% or the percentage
9increase in the Consumer Price Index during the 12-month
10calendar year preceding the levy year. The debt service
11extension base may be established or increased as provided
12under Section 18-212. "Excluded non-referendum bonds" means
13(i) bonds authorized by Public Act 88-503 and issued under
14Section 20a of the Chicago Park District Act for aquarium and
15museum projects; (ii) bonds issued under Section 15 of the
16Local Government Debt Reform Act; or (iii) refunding
17obligations issued to refund or to continue to refund
18obligations initially issued pursuant to referendum.
19 "Special purpose extensions" include, but are not limited
20to, extensions for levies made on an annual basis for
21unemployment and workers' compensation, self-insurance,
22contributions to pension plans, and extensions made pursuant to
23Section 6-601 of the Illinois Highway Code for a road
24district's permanent road fund whether levied annually or not.
25The extension for a special service area is not included in the
26aggregate extension.

HB1566- 14 -LRB101 06694 RPS 51721 b
1 "Aggregate extension base" means the taxing district's
2last preceding aggregate extension as adjusted under Sections
318-135, 18-215, 18-230, and 18-206. An adjustment under Section
418-135 shall be made for the 2007 levy year and all subsequent
5levy years whenever one or more counties within which a taxing
6district is located (i) used estimated valuations or rates when
7extending taxes in the taxing district for the last preceding
8levy year that resulted in the over or under extension of
9taxes, or (ii) increased or decreased the tax extension for the
10last preceding levy year as required by Section 18-135(c).
11Whenever an adjustment is required under Section 18-135, the
12aggregate extension base of the taxing district shall be equal
13to the amount that the aggregate extension of the taxing
14district would have been for the last preceding levy year if
15either or both (i) actual, rather than estimated, valuations or
16rates had been used to calculate the extension of taxes for the
17last levy year, or (ii) the tax extension for the last
18preceding levy year had not been adjusted as required by
19subsection (c) of Section 18-135.
20 Notwithstanding any other provision of law, for levy year
212012, the aggregate extension base for West Northfield School
22District No. 31 in Cook County shall be $12,654,592.
23 "Levy year" has the same meaning as "year" under Section
241-155.
25 "New property" means (i) the assessed value, after final
26board of review or board of appeals action, of new improvements

HB1566- 15 -LRB101 06694 RPS 51721 b
1or additions to existing improvements on any parcel of real
2property that increase the assessed value of that real property
3during the levy year multiplied by the equalization factor
4issued by the Department under Section 17-30, (ii) the assessed
5value, after final board of review or board of appeals action,
6of real property not exempt from real estate taxation, which
7real property was exempt from real estate taxation for any
8portion of the immediately preceding levy year, multiplied by
9the equalization factor issued by the Department under Section
1017-30, including the assessed value, upon final stabilization
11of occupancy after new construction is complete, of any real
12property located within the boundaries of an otherwise or
13previously exempt military reservation that is intended for
14residential use and owned by or leased to a private corporation
15or other entity, (iii) in counties that classify in accordance
16with Section 4 of Article IX of the Illinois Constitution, an
17incentive property's additional assessed value resulting from
18a scheduled increase in the level of assessment as applied to
19the first year final board of review market value, and (iv) any
20increase in assessed value due to oil or gas production from an
21oil or gas well required to be permitted under the Hydraulic
22Fracturing Regulatory Act that was not produced in or accounted
23for during the previous levy year. In addition, the county
24clerk in a county containing a population of 3,000,000 or more
25shall include in the 1997 recovered tax increment value for any
26school district, any recovered tax increment value that was

HB1566- 16 -LRB101 06694 RPS 51721 b
1applicable to the 1995 tax year calculations.
2 "Qualified airport authority" means an airport authority
3organized under the Airport Authorities Act and located in a
4county bordering on the State of Wisconsin and having a
5population in excess of 200,000 and not greater than 500,000.
6 "Recovered tax increment value" means, except as otherwise
7provided in this paragraph, the amount of the current year's
8equalized assessed value, in the first year after a
9municipality terminates the designation of an area as a
10redevelopment project area previously established under the
11Tax Increment Allocation Development Act in the Illinois
12Municipal Code, previously established under the Industrial
13Jobs Recovery Law in the Illinois Municipal Code, previously
14established under the Economic Development Project Area Tax
15Increment Act of 1995, or previously established under the
16Economic Development Area Tax Increment Allocation Act, of each
17taxable lot, block, tract, or parcel of real property in the
18redevelopment project area over and above the initial equalized
19assessed value of each property in the redevelopment project
20area. For the taxes which are extended for the 1997 levy year,
21the recovered tax increment value for a non-home rule taxing
22district that first became subject to this Law for the 1995
23levy year because a majority of its 1994 equalized assessed
24value was in an affected county or counties shall be increased
25if a municipality terminated the designation of an area in 1993
26as a redevelopment project area previously established under

HB1566- 17 -LRB101 06694 RPS 51721 b
1the Tax Increment Allocation Development Act in the Illinois
2Municipal Code, previously established under the Industrial
3Jobs Recovery Law in the Illinois Municipal Code, or previously
4established under the Economic Development Area Tax Increment
5Allocation Act, by an amount equal to the 1994 equalized
6assessed value of each taxable lot, block, tract, or parcel of
7real property in the redevelopment project area over and above
8the initial equalized assessed value of each property in the
9redevelopment project area. In the first year after a
10municipality removes a taxable lot, block, tract, or parcel of
11real property from a redevelopment project area established
12under the Tax Increment Allocation Development Act in the
13Illinois Municipal Code, the Industrial Jobs Recovery Law in
14the Illinois Municipal Code, or the Economic Development Area
15Tax Increment Allocation Act, "recovered tax increment value"
16means the amount of the current year's equalized assessed value
17of each taxable lot, block, tract, or parcel of real property
18removed from the redevelopment project area over and above the
19initial equalized assessed value of that real property before
20removal from the redevelopment project area.
21 Except as otherwise provided in this Section, "limiting
22rate" means a fraction the numerator of which is the last
23preceding aggregate extension base times an amount equal to one
24plus the extension limitation defined in this Section and the
25denominator of which is the current year's equalized assessed
26value of all real property in the territory under the

HB1566- 18 -LRB101 06694 RPS 51721 b
1jurisdiction of the taxing district during the prior levy year.
2For those taxing districts that reduced their aggregate
3extension for the last preceding levy year, except for school
4districts that reduced their extension for educational
5purposes pursuant to Section 18-206, the highest aggregate
6extension in any of the last 3 preceding levy years shall be
7used for the purpose of computing the limiting rate. The
8denominator shall not include new property or the recovered tax
9increment value. If a new rate, a rate decrease, or a limiting
10rate increase has been approved at an election held after March
1121, 2006, then (i) the otherwise applicable limiting rate shall
12be increased by the amount of the new rate or shall be reduced
13by the amount of the rate decrease, as the case may be, or (ii)
14in the case of a limiting rate increase, the limiting rate
15shall be equal to the rate set forth in the proposition
16approved by the voters for each of the years specified in the
17proposition, after which the limiting rate of the taxing
18district shall be calculated as otherwise provided. In the case
19of a taxing district that obtained referendum approval for an
20increased limiting rate on March 20, 2012, the limiting rate
21for tax year 2012 shall be the rate that generates the
22approximate total amount of taxes extendable for that tax year,
23as set forth in the proposition approved by the voters; this
24rate shall be the final rate applied by the county clerk for
25the aggregate of all capped funds of the district for tax year
262012.

HB1566- 19 -LRB101 06694 RPS 51721 b
1(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
2100-465, eff. 8-31-17.)
3 Section 10. The Illinois Pension Code is amended by
4changing Sections 3-101, 3-106, 4-101, 4-106, and 7-109 and by
5adding Sections 3-101.1, 3-101.2, 4-101.1, 4-101.2, 7-199.5,
6and 7-199.6 as follows:
7 (40 ILCS 5/3-101) (from Ch. 108 1/2, par. 3-101)
8 Sec. 3-101. Creation and consolidation of the funds fund.
9 (a) Until January 1, 2021, in In each municipality, as
10defined in Section 3-103, the city council or the board of
11trustees, as the case may be, shall establish and administer a
12police pension fund, as prescribed in this Article, for the
13benefit of its police officers and of their surviving spouses,
14children, and certain other dependents. The duty of the
15corporate authorities of a municipality to establish and
16administer a police pension fund shall be suspended during any
17period during which the fund is dissolved under Section 3-144.6
18of this Code.
19 (b) On January 1, 2021, all of the individual police
20pension funds then existing under this Article are merged and
21consolidated into the Illinois Municipal Retirement Fund,
22which shall be administered as prescribed in this Article and
23Article 7.
24 (c) Beginning January 1, 2021, each municipality, as

HB1566- 20 -LRB101 06694 RPS 51721 b
1defined in Section 3-103, shall participate in the Illinois
2Municipal Retirement Fund for the benefit of its police
3officers and of their surviving spouses, children, and certain
4other dependents.
5 (d) It is the purpose of this consolidation to provide the
6advantages of (i) centralized custody and investment of pension
7fund assets, (ii) consistent interpretation and application of
8this Article in accordance with a single set of rules and
9procedures adopted by the Illinois Municipal Retirement Fund,
10and (iii) securing the future funding of pension benefits
11through an independent determination of each municipality's
12required annual contribution rate.
13(Source: P.A. 97-99, eff. 1-1-12.)
14 (40 ILCS 5/3-101.1 new)
15 Sec. 3-101.1. Transition Board.
16 (a) There is hereby created a Downstate Police Pension Fund
17Transition Board, which may be referred to as the "Transition
18Board". The Transition Board shall consist of 11 members as
19follows:
20 (1) The Director of Insurance, or his or her designee.
21 (2) Two persons with experience in managing or
22 administering an Illinois public employee pension fund or
23 retirement system, appointed by the Governor.
24 (3) One person with experience in providing actuarial
25 services to an Illinois public employee pension fund or

HB1566- 21 -LRB101 06694 RPS 51721 b
1 retirement system, appointed by the Governor.
2 (4) One person with experience in auditing Illinois
3 public employee pension funds or retirement systems,
4 appointed by the Auditor General.
5 (5) Two members of the labor organization representing
6 the largest number of police officers participating in
7 Article 3 pension funds, with one member being an active
8 participant and the other being a retired participant,
9 appointed by the Governor from recommendations of the
10 President of that organization.
11 (6) Two persons who are mayors or chief elected
12 officers of municipalities that maintain an Article 3
13 pension fund, appointed by the Governor from
14 recommendations of the Executive Director of the
15 organization representing the largest number of
16 municipalities in the State.
17 (7) One person familiar with the operation and
18 administration of the Illinois Municipal Retirement Fund,
19 appointed by the Executive Director of that Fund.
20 (8) One person familiar with the investment authority
21 and practices of the Illinois State Board of Investment,
22 appointed by the Executive Director of the Illinois State
23 Board of Investment.
24 All such appointments and designations shall be made by
25filing a written notice thereof with the Secretary of State no
26later than 30 days after the effective date of this amendatory

HB1566- 22 -LRB101 06694 RPS 51721 b
1Act of the 101st General Assembly.
2 (b) The Transition Board shall be responsible for planning,
3overseeing, and administering the consolidation and merger of
4all existing Article 3 pension funds into the Illinois
5Municipal Retirement Fund.
6 Members of the Transition Board shall act at all times in a
7manner appropriate for fiduciaries of the Fund and fiduciaries
8of the pension funds being consolidated.
9 The Transition Board's powers and duties include, but are
10not limited to, the following:
11 (1) Providing for the preservation and consolidation
12 of membership, beneficiary, financial, and other records
13 relating to the Article 3 pension funds to be merged.
14 (2) Obtaining all necessary Internal Revenue Service
15 and any other necessary approval or review.
16 (3) Providing for the final auditing of existing
17 Article 3 pension funds, including a final accounting of
18 their respective assets and liabilities, paid for by the
19 applicable pension fund.
20 (4) Providing for the custody and transfer of the
21 assets and liabilities of the existing Article 3 pension
22 funds to the Illinois Municipal Retirement Fund, on a
23 schedule to be determined by the Transition Board.
24 (5) Recommending to the Illinois Municipal Retirement
25 Fund an appropriate system of accounting for the assets and
26 liabilities attributable to the existing Article 3 pension

HB1566- 23 -LRB101 06694 RPS 51721 b
1 funds and for establishing separate reserves and accounts
2 for each municipality participating in the Fund with
3 respect to its police officers.
4 (6) Recommending to the Illinois Municipal Retirement
5 Fund an appropriate system of determining, administering,
6 receiving, and enforcing the required municipal
7 contributions to the Fund. The municipal contribution rate
8 shall be determined separately for each municipality on an
9 annual basis in accordance with the requirements of this
10 Article, based on the municipality's separate reserves and
11 accounts within the Illinois Municipal Retirement Fund.
12 The Transition Board shall endeavor to determine the
13 required municipal contributions to the Illinois Municipal
14 Retirement Fund with regard to the municipality's police
15 officers under this Article and to notify and provide
16 reasonable guidance to municipalities in a manner that
17 ensures uninterrupted contributions during the transition
18 period.
19 (7) Ensuring the uninterrupted payment and
20 administration of benefits.
21 (8) Adopting any rules or procedures necessary for the
22 efficient consolidation of the existing Article 3 pension
23 funds.
24 (9) Considering the consequences of the consolidation
25 on any QILDROs filed with the pension funds being
26 consolidated and giving appropriate notice and advice to

HB1566- 24 -LRB101 06694 RPS 51721 b
1 persons who may be affected by those QILDROs concerning the
2 possible effects of consolidation.
3 (10) Making recommendations to the Governor and the
4 General Assembly with respect to legislation necessary or
5 useful for the implementation of this consolidation or for
6 the successful administration of the Illinois Municipal
7 Retirement Fund with respect to police officers under this
8 Article.
9 (11) Consulting with the Illinois Municipal Retirement
10 Fund about the Illinois Municipal Retirement Fund's
11 policies, practices, rules, and structure.
12 (c) The Public Pension Division of the Department of
13Insurance shall provide all reasonably necessary and available
14temporary office space, technical and clerical support, and
15monetary or other assistance at the request of the Transition
16Board.
17 For the purpose of implementing the consolidation, the
18Transition Board may direct the Public Pension Division to
19accelerate, expand, or enhance its examination under Section
201A-104 of all or specific Article 3 pension funds, or to
21conduct a particular study or investigation thereof. The
22expenses of such examinations and investigations, to the extent
23not paid by the Division, shall be charged to the applicable
24pension fund.
25 (d) In preparation for the consolidation of the pension
26funds into the Illinois Municipal Retirement Fund on January 1,

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12021, the Transition Board is authorized to expend or obligate
2the assets of the Illinois Municipal Retirement Fund for any of
3the reasonable expenses of consolidating the pension funds into
4the Illinois Municipal Retirement Fund, including the payment
5of benefits during the consolidation period and reasonable
6administrative expenses. As used in this Section, "reasonable
7administrative expenses" includes, but is not limited to, the
8cost of hiring personnel and obtaining professional services to
9the extent necessary for the consolidation, the cost of
10insurance, and the cost of indemnifying members of the
11Transition Board and its employees, advisors, and agents.
12 (e) Members of the Transition Board, other than State
13officials and employees, may be compensated for their service,
14and all members may be reimbursed for their reasonable expenses
15out of any moneys available for that purpose.
16 (f) Sixty days after the Board of Trustees of the Illinois
17Municipal Retirement Fund assumes its duties, the Transition
18Board is abolished.
19 (40 ILCS 5/3-101.2 new)
20 Sec. 3-101.2. Consolidation of pension funds into the
21Illinois Municipal Retirement Fund.
22 (a) On January 1, 2021, all of the individual police
23pension funds then existing under this Article are merged and
24consolidated into the Illinois Municipal Retirement Fund,
25which shall be administered as prescribed in this Article and

HB1566- 26 -LRB101 06694 RPS 51721 b
1Article 7.
2 In preparation for that consolidation, all pension funds
3established under this Article, and the municipalities that
4established them, shall cooperate with the Transition Board.
5 (b) The Illinois Municipal Retirement Fund shall be the
6legal successor to each of the pension funds that are
7consolidated within it, and it may exercise any of the rights
8and powers and perform any of the duties of those pension
9funds.
10 At the time of consolidation, or as otherwise directed by
11the Transition Board, all assets and liabilities belonging to
12or arising from the trust of an existing pension fund shall
13become the assets and liabilities of the Illinois Municipal
14Retirement Fund.
15 As and when directed by the Transition Board, the trustees
16of the pension funds established under Article 3 of this Code
17shall transfer to the Illinois Municipal Retirement Fund, for
18management and investment as assets of the Illinois Municipal
19Retirement Fund, all of their securities and other investments
20not needed for immediate use.
21 (c) At the time of consolidation or as otherwise directed
22by the Transition Board, assets not belonging to or arising
23from the trust that are incidentally owned by a pension fund,
24and any incidental liabilities of a pension fund not relating
25to or arising from the trust, shall become the assets and
26liabilities of the municipality.

HB1566- 27 -LRB101 06694 RPS 51721 b
1 Assets not belonging to or arising from the trust that are
2owned by a municipality and incidentally used by a pension
3fund, and any associated liabilities, are not affected by the
4consolidation and shall continue to be managed as assets and
5liabilities of that municipality.
6 As necessary or useful to effectuate the consolidation, the
7board of trustees of a pension fund to be consolidated and the
8applicable municipality may each, in its discretion, continue
9or renegotiate any employment or service contract, lease, or
10other contract to which it is a party that relates to the
11operation of the consolidated pension fund, and it may take
12appropriate action to terminate any such contract as necessary
13to terminate or avoid unnecessary or duplicative personnel,
14facilities, or services.
15 (d) Beginning on January 1, 2021, all benefits payable
16under this Article shall be payable from the appropriate
17accounts and reserves of the Illinois Municipal Retirement
18Fund.
19 (e) The consolidation of pension funds under this Article
20shall not diminish or impair the benefits of any current or
21former police officer who participated in one of those pension
22funds, or of any such police officer's surviving spouse,
23children, or other dependents.
24 The consolidation of pension funds under this Article shall
25not change the police officer contribution rate.
26 The consolidation of pension funds under this Article does

HB1566- 28 -LRB101 06694 RPS 51721 b
1not entitle any person to a recalculation or combination of any
2benefit or benefits previously granted or to a refund of any
3contribution previously paid.
4 The consolidation of pension funds under this Article is
5not intended to increase the benefits provided under this
6Article, except insofar as the consolidation of pension funds
7into the Illinois Municipal Retirement Fund will allow police
8officers in active service on or after the consolidation date
9to have their benefit calculations (and those of their
10qualifying survivors) include consideration of all of the
11police officer's service, salary, and credits in the Fund as
12though arising under the Fund, rather than as arising under
13more than one participating municipality or more than one
14Article 3 pension fund.
15 (f) On January 1, 2021, the rules adopted by the Transition
16Board shall become the rules of the Illinois Municipal
17Retirement Fund with respect to this Article.
18 (40 ILCS 5/3-106) (from Ch. 108 1/2, par. 3-106)
19 Sec. 3-106. Police officer, officer. "Police officer" or
20"officer": Any person who (1) is first appointed before January
211, 2021 to the police force of a police department and sworn
22and commissioned to perform police duties; and (2) within 3
23months after receiving his or her first appointment and, if
24reappointed, within 3 months thereafter, or as otherwise
25provided in Section 3-109, makes written application to the

HB1566- 29 -LRB101 06694 RPS 51721 b
1board to come under the provisions of this Article.
2 Police officers serving initial probationary periods, if
3otherwise eligible, shall be police officers within the meaning
4of this Section.
5(Source: P.A. 89-52, eff. 6-30-95.)
6 (40 ILCS 5/4-101) (from Ch. 108 1/2, par. 4-101)
7 Sec. 4-101. Creation and consolidation of the funds fund.
8 (a) Until January 1, 2021, in In each municipality as
9defined in Section 4-103, the city council or the board of
10trustees, as the case may be, shall establish and administer a
11firefighters' pension fund as prescribed in this Article, for
12the benefit of its firefighters and of their surviving spouses,
13children and certain other dependents. The duty of the
14corporate authorities of a municipality to establish and
15administer a firefighters' pension fund shall be suspended
16during any period during which the fund is dissolved under
17subsection (c) of Section 4-106.1 of this Code.
18 (b) On January 1, 2021, all of the individual firefighter
19pension funds then existing under this Article are merged and
20consolidated into the Illinois Municipal Retirement Fund,
21which shall be administered as prescribed in this Article and
22Article 7.
23 (c) Beginning January 1, 2021, each municipality, as
24defined in Section 4-103, shall participate in the Illinois
25Municipal Retirement Fund for the benefit of its firefighters

HB1566- 30 -LRB101 06694 RPS 51721 b
1and of their surviving spouses, children, and certain other
2dependents.
3 (d) It is the purpose of this consolidation to provide the
4advantages of (i) centralized custody and investment of pension
5fund assets, (ii) consistent interpretation and application of
6this Article in accordance with a single set of rules and
7procedures adopted by the Illinois Municipal Retirement Fund,
8and (iii) securing the future funding of pension benefits
9through an independent determination of each municipality's
10required annual contribution rate.
11(Source: P.A. 97-99, eff. 1-1-12.)
12 (40 ILCS 5/4-101.1 new)
13 Sec. 4-101.1. Transition Board.
14 (a) There is hereby created a Downstate Firefighter Pension
15Fund Transition Board, which may be referred to as the
16"Transition Board". The Transition Board shall consist of 11
17members as follows:
18 (1) The Director of Insurance, or his or her designee.
19 (2) Two persons with experience in managing or
20 administering an Illinois public employee pension fund or
21 retirement system, appointed by the Governor.
22 (3) One person with experience in providing actuarial
23 services to an Illinois public employee pension fund or
24 retirement system, appointed by the Governor.
25 (4) One person with experience in auditing Illinois

HB1566- 31 -LRB101 06694 RPS 51721 b
1 public employee pension funds or retirement systems,
2 appointed by the Auditor General.
3 (5) Two members of the labor organization representing
4 the largest number of firefighters participating in
5 Article 4 pension funds, with one member being an active
6 participant and the other being a retired participant,
7 appointed by the Governor from recommendations of the
8 President of that organization.
9 (6) Two persons who are mayors or chief elected
10 officers of municipalities that maintain an Article 4
11 pension fund, appointed by the Governor from
12 recommendations of the Executive Director of the
13 organization representing the largest number of
14 municipalities in the State.
15 (7) One person familiar with the operation and
16 administration of the Illinois Municipal Retirement Fund,
17 appointed by the Executive Director of that Fund.
18 (8) One person familiar with the investment authority
19 and practices of the Illinois State Board of Investment,
20 appointed by the Executive Director of the Illinois State
21 Board of Investment.
22 All such appointments and designations shall be made by
23filing a written notice thereof with the Secretary of State no
24later than 30 days after the effective date of this amendatory
25Act of the 101st General Assembly.
26 (b) The Transition Board shall be responsible for planning,

HB1566- 32 -LRB101 06694 RPS 51721 b
1overseeing, and administering the consolidation and merger of
2all existing Article 4 pension funds into the Illinois
3Municipal Retirement Fund.
4 Members of the Transition Board shall act at all times in a
5manner appropriate for fiduciaries of the Fund and fiduciaries
6of the pension funds being consolidated.
7 The Transition Board's powers and duties include, but are
8not limited to, the following:
9 (1) Providing for the preservation and consolidation
10 of membership, beneficiary, financial, and other records
11 relating to the Article 4 pension funds to be merged.
12 (2) Obtaining all necessary Internal Revenue Service
13 and any other necessary approval or review.
14 (3) Providing for the final auditing of existing
15 Article 4 pension funds, including a final accounting of
16 their respective assets and liabilities, paid for by the
17 applicable pension fund.
18 (4) Providing for the custody and transfer of the
19 assets and liabilities of the existing Article 4 pension
20 funds to the Illinois Municipal Retirement Fund, on a
21 schedule to be determined by the Transition Board.
22 (5) Recommending to the Illinois Municipal Retirement
23 Fund an appropriate system of accounting for the assets and
24 liabilities attributable to the existing Article 4 pension
25 funds and for establishing separate reserves and accounts
26 for each municipality participating in the Fund with

HB1566- 33 -LRB101 06694 RPS 51721 b
1 respect to its firefighters.
2 (6) Recommending to the Illinois Municipal Retirement
3 Fund an appropriate system of determining, administering,
4 receiving, and enforcing the required municipal
5 contributions to the Fund. The municipal contribution rate
6 shall be determined separately for each municipality on an
7 annual basis in accordance with the requirements of this
8 Article, based on the municipality's separate reserves and
9 accounts within the Illinois Municipal Retirement Fund.
10 The Transition Board shall endeavor to determine the
11 required municipal contributions to the Illinois Municipal
12 Retirement Fund with regard to the municipality's
13 firefighters under this Article and to notify and provide
14 reasonable guidance to municipalities in a manner that
15 ensures uninterrupted contributions during the transition
16 period.
17 (7) Ensuring the uninterrupted payment and
18 administration of benefits.
19 (8) Adopting any rules or procedures necessary for the
20 efficient consolidation of the existing Article 4 pension
21 funds.
22 (9) Considering the consequences of the consolidation
23 on any QILDROs filed with the pension funds being
24 consolidated and giving appropriate notice and advice to
25 persons who may be affected by those QILDROs concerning the
26 possible effects of consolidation.

HB1566- 34 -LRB101 06694 RPS 51721 b
1 (10) Making recommendations to the Governor and the
2 General Assembly with respect to legislation necessary or
3 useful for the implementation of this consolidation or for
4 the successful administration of the Illinois Municipal
5 Retirement Fund with respect to firefighters under this
6 Article.
7 (11) Consulting with the Illinois Municipal Retirement
8 Fund about the Illinois Municipal Retirement Fund's
9 policies, practices, rules, and structure.
10 (c) The Public Pension Division of the Department of
11Insurance shall provide all reasonably necessary and available
12temporary office space, technical and clerical support, and
13monetary or other assistance at the request of the Transition
14Board.
15 For the purpose of implementing the consolidation, the
16Transition Board may direct the Public Pension Division to
17accelerate, expand, or enhance its examination under Section
181A-104 of all or specific Article 4 pension funds, or to
19conduct a particular study or investigation thereof. The
20expenses of such examinations and investigations, to the extent
21not paid by the Division, shall be charged to the applicable
22pension fund.
23 (d) In preparation for the consolidation of the pension
24funds into the Illinois Municipal Retirement Fund on January 1,
252021, the Transition Board is authorized to expend or obligate
26the assets of the Illinois Municipal Retirement Fund for any of

HB1566- 35 -LRB101 06694 RPS 51721 b
1the reasonable expenses of consolidating the pension funds into
2the Illinois Municipal Retirement Fund, including the payment
3of benefits during the consolidation period and reasonable
4administrative expenses. As used in this Section, "reasonable
5administrative expenses" includes, but is not limited to, the
6cost of hiring personnel and obtaining professional services to
7the extent necessary for the consolidation, the cost of
8insurance, and the cost of indemnifying members of the
9Transition Board and its employees, advisors, and agents.
10 (e) Members of the Transition Board, other than State
11officials and employees, may be compensated for their service,
12and all members may be reimbursed for their reasonable expenses
13out of any moneys available for that purpose.
14 (f) Sixty days after the Board of Trustees of the Illinois
15Municipal Retirement Fund assumes its duties, the Transition
16Board is abolished.
17 (40 ILCS 5/4-101.2 new)
18 Sec. 4-101.2. Consolidation of pension funds into the
19Illinois Municipal Retirement Fund.
20 (a) On January 1, 2021, all of the individual firefighter
21pension funds then existing under this Article are merged and
22consolidated into the Illinois Municipal Retirement Fund,
23which shall be administered as prescribed in this Article and
24Article 7.
25 In preparation for that consolidation, all pension funds

HB1566- 36 -LRB101 06694 RPS 51721 b
1established under this Article, and the municipalities that
2established them, shall cooperate with the Transition Board.
3 (b) The Illinois Municipal Retirement Fund shall be the
4legal successor to each of the pension funds that are
5consolidated within it, and it may exercise any of the rights
6and powers and perform any of the duties of those pension
7funds.
8 At the time of consolidation, or as otherwise directed by
9the Transition Board, all assets and liabilities belonging to
10or arising from the trust of an existing pension fund shall
11become the assets and liabilities of the Illinois Municipal
12Retirement Fund.
13 As and when directed by the Transition Board, the trustees
14of the pension funds established under Article 4 of this Code
15shall transfer to the Illinois Municipal Retirement Fund, for
16management and investment as assets of the Illinois Municipal
17Retirement Fund, all of their securities and other investments
18not needed for immediate use.
19 (c) At the time of consolidation or as otherwise directed
20by the Transition Board, assets not belonging to or arising
21from the trust that are incidentally owned by a pension fund,
22and any incidental liabilities of a pension fund not relating
23to or arising from the trust, shall become the assets and
24liabilities of the municipality.
25 Assets not belonging to or arising from the trust that are
26owned by a municipality and incidentally used by a pension

HB1566- 37 -LRB101 06694 RPS 51721 b
1fund, and any associated liabilities, are not affected by the
2consolidation and shall continue to be managed as assets and
3liabilities of that municipality.
4 As necessary or useful to effectuate the consolidation, the
5board of trustees of a pension fund to be consolidated and the
6applicable municipality may each, in its discretion, continue
7or renegotiate any employment or service contract, lease, or
8other contract to which it is a party that relates to the
9operation of the consolidated pension fund, and it may take
10appropriate action to terminate any such contract as necessary
11to terminate or avoid unnecessary or duplicative personnel,
12facilities, or services.
13 (d) Beginning on January 1, 2021, all benefits payable
14under this Article shall be payable from the appropriate
15accounts and reserves of the Illinois Municipal Retirement
16Fund.
17 (e) The consolidation of pension funds under this Article
18shall not diminish or impair the benefits of any current or
19former firefighter who participated in one of those pension
20funds, or of any such firefighter's surviving spouse, children,
21or other dependents.
22 The consolidation of pension funds under this Article shall
23not change the firefighter contribution rate, except that no
24additional contribution shall be paid under subsection (c) of
25Section 4-118.1.
26 The consolidation of pension funds under this Article does

HB1566- 38 -LRB101 06694 RPS 51721 b
1not entitle any person to a recalculation or combination of any
2benefit or benefits previously granted or to a refund of any
3contribution previously paid.
4 The consolidation of pension funds under this Article is
5not intended to increase the benefits provided under this
6Article, except insofar as the consolidation of pension funds
7into the Illinois Municipal Retirement Fund will allow
8firefighters in active service on or after the consolidation
9date to have their benefit calculations (and those of their
10qualifying survivors) include consideration of all of the
11firefighter's service, salary, and credits in the Fund as
12though arising under the Fund, rather than as arising under
13more than one participating municipality or more than one
14Article 4 pension fund.
15 (f) On January 1, 2021, the rules adopted by the Transition
16Board shall become the rules of the Illinois Municipal
17Retirement Fund with respect to this Article.
18 (40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)
19 Sec. 4-106. Firefighter, firefighters. "Firefighter,
20firefighters":
21 (a) In municipalities which have adopted Division 1 of
22Article 10 of the Illinois Municipal Code, any person first
23employed before January 1, 2021 in the municipality's fire
24service as a firefighter, fire engineer, marine engineer, fire
25pilot, bomb technician or scuba diver; and in any of these

HB1566- 39 -LRB101 06694 RPS 51721 b
1positions where such person's duties also include those of a
2firefighter as classified by the Civil Service Commission of
3that city, and whose duty is to participate in the work of
4controlling and extinguishing fires at the location of any such
5fires.
6 (b) In municipalities which are subject to Division 2.1 of
7Article 10 of the Illinois Municipal Code, any person first
8employed before January 1, 2021 by a city in its fire service
9as a firefighter, fire engineer, marine engineer, fire pilot,
10bomb technician, or scuba diver; and, in any of these positions
11whose duties also include those of a firefighter and are
12certified in the same manner as a firefighter in that city.
13 (c) In municipalities which are subject to neither Division
141 nor Division 2.1 of Article 10 of the Illinois Municipal
15Code, any person who would have been included as a firefighter
16under sub-paragraph (a) or (b) above except that he served as a
17de facto and not as a de jure firefighter.
18 (d) Notwithstanding the other provisions of this Section,
19"firefighter" does not include any person who is actively
20participating in the State Universities Retirement System
21under subsection (h) of Section 15-107 with respect to the
22employment for which he or she is a participating employee in
23that System.
24 (e) This amendatory Act of 1977 does not affect persons
25covered by this Article prior to September 22, 1977.
26(Source: P.A. 90-576, eff. 3-31-98.)

HB1566- 40 -LRB101 06694 RPS 51721 b
1 (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
2 Sec. 7-109. Employee.
3 (1) "Employee" means any person who:
4 (a) 1. Receives earnings as payment for the performance
5 of personal services or official duties out of the general
6 fund of a municipality, or out of any special fund or funds
7 controlled by a municipality, or by an instrumentality
8 thereof, or a participating instrumentality, including, in
9 counties, the fees or earnings of any county fee office;
10 and
11 2. Under the usual common law rules applicable in
12 determining the employer-employee relationship, has the
13 status of an employee with a municipality, or any
14 instrumentality thereof, or a participating
15 instrumentality, including aldermen, county supervisors
16 and other persons (excepting those employed as independent
17 contractors) who are paid compensation, fees, allowances
18 or other emolument for official duties, and, in counties,
19 the several county fee offices.
20 (b) Serves as a township treasurer appointed under the
21 School Code, as heretofore or hereafter amended, and who
22 receives for such services regular compensation as
23 distinguished from per diem compensation, and any regular
24 employee in the office of any township treasurer whether or
25 not his earnings are paid from the income of the permanent

HB1566- 41 -LRB101 06694 RPS 51721 b
1 township fund or from funds subject to distribution to the
2 several school districts and parts of school districts as
3 provided in the School Code, or from both such sources; or
4 is the chief executive officer, chief educational officer,
5 chief fiscal officer, or other employee of a Financial
6 Oversight Panel established pursuant to Article 1H of the
7 School Code, other than a superintendent or certified
8 school business official, except that such person shall not
9 be treated as an employee under this Section if that person
10 has negotiated with the Financial Oversight Panel, in
11 conjunction with the school district, a contractual
12 agreement for exclusion from this Section.
13 (c) Holds an elective office in a municipality,
14 instrumentality thereof or participating instrumentality.
15 (d) Is first appointed on or after January 1, 2021 to
16 the police force of a police department in a municipality,
17 as defined in Section 3-103, and sworn and commissioned to
18 perform police duties.
19 (e) Is in a municipality, as defined in Section 4-103,
20 that has adopted Division 1 of Article 10 of the Illinois
21 Municipal Code and is first employed on or after January 1,
22 2021 in the municipality's fire service as a firefighter,
23 fire engineer, marine engineer, fire pilot, bomb
24 technician, or scuba diver; and in any of these positions
25 where such person's duties also include those of a
26 firefighter as classified by the Civil Service Commission

HB1566- 42 -LRB101 06694 RPS 51721 b
1 of that city, and whose duty is to participate in the work
2 of controlling and extinguishing fires at the location of
3 any such fires.
4 (f) Is in a municipality, as defined in Section 4-103,
5 that is subject to Division 2.1 of Article 10 of the
6 Illinois Municipal Code and is first employed on or after
7 January 1, 2021 by a city in its fire service as a
8 firefighter, fire engineer, marine engineer, fire pilot,
9 bomb technician, or scuba diver; and, in any of these
10 positions whose duties also include those of a firefighter
11 and are certified in the same manner as a firefighter in
12 that city.
13 (g) Is first employed on or after January 1, 2021 in a
14 municipality, as defined in Section 4-103, that is subject
15 to neither Division 1 nor Division 2.1 of Article 10 of the
16 Illinois Municipal Code and would have been included as an
17 employee under items (e) or (f) except that he or she
18 served as a de facto and not as a de jure firefighter.
19 (2) "Employee" does not include persons who:
20 (a) Are eligible for inclusion under any of the
21 following laws:
22 1. "An Act in relation to an Illinois State
23 Teachers' Pension and Retirement Fund", approved May
24 27, 1915, as amended;
25 2. Articles 15 and 16 of this Code.
26 However, such persons shall be included as employees to

HB1566- 43 -LRB101 06694 RPS 51721 b
1 the extent of earnings that are not eligible for inclusion
2 under the foregoing laws for services not of an
3 instructional nature of any kind.
4 However, any member of the armed forces who is employed
5 as a teacher of subjects in the Reserve Officers Training
6 Corps of any school and who is not certified under the law
7 governing the certification of teachers shall be included
8 as an employee.
9 (b) Are designated before January 1, 2021 by the
10 governing body of a municipality in which a pension fund is
11 required by law to be established for policemen or firemen,
12 respectively, as performing police or fire protection
13 duties, except that when such persons are the heads of the
14 police or fire department and are not eligible to be
15 included within any such pension fund, they shall be
16 included within this Article; provided, that such persons
17 shall not be excluded to the extent of concurrent service
18 and earnings not designated as being for police or fire
19 protection duties. However, (i) any head of a police
20 department who was a participant under this Article
21 immediately before October 1, 1977 and did not elect, under
22 Section 3-109 of this Act, to participate in a police
23 pension fund shall be an "employee", and (ii) any chief of
24 police who became a participating employee under this
25 Article before January 1, 2019 and who elects to
26 participate in this Fund under Section 3-109.1 of this

HB1566- 44 -LRB101 06694 RPS 51721 b
1 Code, regardless of whether such person continues to be
2 employed as chief of police or is employed in some other
3 rank or capacity within the police department, shall be an
4 employee under this Article for so long as such person is
5 employed to perform police duties by a participating
6 municipality and has not lawfully rescinded that election.
7 (b-5) Were not participating employees under this
8 Article before the effective date of this amendatory Act of
9 the 100th General Assembly and participated as a chief of
10 police in a fund under Article 3 and return to work in any
11 capacity with the police department, with any oversight of
12 the police department, or in an advisory capacity for the
13 police department with the same municipality with which
14 that pension was earned, regardless of whether they are
15 considered an employee of the police department or are
16 eligible for inclusion in the municipality's Article 3
17 fund.
18 (c) Are contributors to or eligible to contribute to a
19 Taft-Hartley pension plan to which the participating
20 municipality is required to contribute as the person's
21 employer based on earnings from the municipality. Nothing
22 in this paragraph shall affect service credit or creditable
23 service for any period of service prior to the effective
24 date of this amendatory Act of the 98th General Assembly,
25 and this paragraph shall not apply to individuals who are
26 participating in the Fund prior to the effective date of

HB1566- 45 -LRB101 06694 RPS 51721 b
1 this amendatory Act of the 98th General Assembly.
2 (d) Become an employee of any of the following
3 participating instrumentalities on or after the effective
4 date of this amendatory Act of the 99th General Assembly:
5 the Illinois Municipal League; the Illinois Association of
6 Park Districts; the Illinois Supervisors, County
7 Commissioners and Superintendents of Highways Association;
8 an association, or not-for-profit corporation, membership
9 in which is authorized under Section 85-15 of the Township
10 Code; the United Counties Council; or the Will County
11 Governmental League.
12 (3) All persons, including, without limitation, public
13defenders and probation officers, who receive earnings from
14general or special funds of a county for performance of
15personal services or official duties within the territorial
16limits of the county, are employees of the county (unless
17excluded by subsection (2) of this Section) notwithstanding
18that they may be appointed by and are subject to the direction
19of a person or persons other than a county board or a county
20officer. It is hereby established that an employer-employee
21relationship under the usual common law rules exists between
22such employees and the county paying their salaries by reason
23of the fact that the county boards fix their rates of
24compensation, appropriate funds for payment of their earnings
25and otherwise exercise control over them. This finding and this
26amendatory Act shall apply to all such employees from the date

HB1566- 46 -LRB101 06694 RPS 51721 b
1of appointment whether such date is prior to or after the
2effective date of this amendatory Act and is intended to
3clarify existing law pertaining to their status as
4participating employees in the Fund.
5(Source: P.A. 99-830, eff. 1-1-17; 100-281, eff. 8-24-17;
6100-1097, eff. 8-26-18.)
7 (40 ILCS 5/7-199.5 new)
8 Sec. 7-199.5. To assist in the consolidation of the pension
9funds under Articles 3 and 4. The Board shall assist in the
10consolidation of pension funds under Articles 3 and 4 and shall
11provide assistance to the Transition Boards created under
12Sections 3-101.1 and 4-101.1 of this Code. The Board shall
13adopt any rules necessary to prepare for the consolidation of
14the pension funds under Articles 3 and 4, including
15establishing accounts and reserves necessary for the
16administration of the benefits and requirements under Articles
173 and 4, and to provide recommendations and administrative
18support necessary to the Transition Boards.
19 (40 ILCS 5/7-199.6 new)
20 Sec. 7-199.6. To administer the benefits under Articles 3
21and 4.
22 (a) On and after January 1, 2021, the Fund shall administer
23the benefits and other requirements under Article 3 in
24accordance with that Article and this Article 7. To the extent

HB1566- 47 -LRB101 06694 RPS 51721 b
1that the administrative requirements under Article 3 conflict
2with this Article 7, this Article 7 shall control. The Fund may
3exercise any of the rights and powers and perform any of the
4duties of the consolidated pension funds under Article 3.
5 The Fund shall adopt rules for the efficient operation and
6administration of Article 3. Any rules adopted by the
7Transition Board established under Section 3-101.1 shall
8become the rules of the Illinois Municipal Retirement Fund with
9respect to the benefits and administration of Article 3 until
10the Illinois Municipal Retirement Fund rescinds those rules or
11adopts superseding rules.
12 (b) On and after January 1, 2021, the Fund shall administer
13the benefits and other requirements under Article 4 in
14accordance with that Article and this Article 7. To the extent
15that the administrative requirements under Article 4 conflict
16with this Article 7, this Article 7 shall control. The Fund may
17exercise any of the rights and powers and perform any of the
18duties of the consolidated pension funds under Article 4.
19 The Fund shall adopt rules for the efficient operation and
20administration of Article 4. Any rules adopted by the
21Transition Board established under Section 4-101.1 shall
22become the rules of the Illinois Municipal Retirement Fund with
23respect to the benefits and administration of Article 4 until
24the Illinois Municipal Retirement Fund rescinds those rules or
25adopts superseding rules.

HB1566- 48 -LRB101 06694 RPS 51721 b
1 Section 15. The Illinois Pension Code is amended by
2changing Sections 3-103, 3-105, 3-108.2, 3-108.3, 3-110,
33-110.7, 3-125, 3-125.1, 3-128, 3-134, 3-135, 3-141, 4-103,
44-105, 4-105c, 4-105d, 4-108, 4-118, 4-118.1, 4-121, 4-124,
54-128, 4-134, 7-175, and 7-175.1 and by adding Sections
63-102.1, 3-103.9, 3-141a, 3-141b, 4-102.1, 4-106.5, 4-130.1,
7and 4-130.3 as follows:
8 (40 ILCS 5/3-102.1 new)
9 Sec. 3-102.1. Fund. "Fund" or "pension fund": Until January
101, 2021, a police pension fund established by a municipality
11under this Article.
12 Beginning January 1, 2021, "Fund" or "pension fund" means
13the Illinois Municipal Retirement Fund with respect to this
14Article; depending on the context, the terms may include one or
15more of those previously established pension funds.
16 (40 ILCS 5/3-103) (from Ch. 108 1/2, par. 3-103)
17 Sec. 3-103. Municipality; participating municipality;
18governing body.
19 (a) "Municipality": (1) Any city, village or incorporated
20town of 5,000 or more but less than 500,000 inhabitants, as
21determined from the United States Government statistics or a
22census taken at any time by the city, village or incorporated
23town and (2) any city, village or incorporated town of less
24than 5,000 inhabitants which, by referendum held under Section

HB1566- 49 -LRB101 06694 RPS 51721 b
13-145 adopts this Article.
2 (b) "Participating municipality" means a municipality, as
3defined in subsection (a), that both is required (or has
4elected) to and does in fact participate in the Fund with
5respect to its police officers under this Article.
6 (c) "Governing body" includes, but is not limited to, the
7board of town trustees or other persons empowered to draft the
8tentative budget and appropriation ordinance and the electors
9of such a township acting at the annual or special meeting of
10town electors.
11(Source: P.A. 83-1440.)
12 (40 ILCS 5/3-103.9 new)
13 Sec. 3-103.9. Authorized agent of a participating
14municipality.
15 (a) Each participating municipality shall appoint an
16authorized agent who shall have the powers and duties set forth
17in this Section. In the absence of such an appointment, the
18duties of the authorized agent shall devolve upon the clerk or
19secretary of the municipality. The authorized agent may be the
20same person appointed as the authorized agent under Section
217-135.
22 (b) The authorized agent of the municipality shall have the
23following powers and duties:
24 (1) To certify to the Fund whether or not a given
25 person is authorized to participate in the Fund.

HB1566- 50 -LRB101 06694 RPS 51721 b
1 (2) To certify to the Fund when a participating
2 employee is on a leave of absence authorized by the
3 municipality.
4 (3) To request the proper officer to cause employee
5 contributions to be withheld from salary and promptly
6 transmitted to the Fund.
7 (4) To request the proper officer to cause municipality
8 contributions to be promptly forwarded to the Fund.
9 (5) To forward promptly to all participating employees
10 any communications for such employees from the Fund or the
11 municipality.
12 (6) To forward promptly to the Board of the Fund all
13 applications, claims reports, and other communications
14 delivered to the agent by participating employees.
15 (7) To perform all duties related to the administration
16 of the Fund as requested by the Fund or the governing body
17 of the municipality.
18 (c) The governing body of each participating municipality
19may delegate either or both of the following powers to its
20authorized agent:
21 (1) To file a petition for nomination of an executive
22 trustee of the Fund.
23 (2) To cast the ballot for election of an executive
24 trustee of the Fund.
25 If a governing body does not authorize its agent to perform
26the powers set forth in this Section, they shall be performed

HB1566- 51 -LRB101 06694 RPS 51721 b
1by the governing body itself, unless the governing body by
2resolution duly certified to the Fund delegates them to some
3other officer or employee.
4 (d) The delivery of any communication or document by an
5employee or a municipality to the authorized agent of the
6municipality does not constitute delivery to the Fund.
7 (40 ILCS 5/3-105) (from Ch. 108 1/2, par. 3-105)
8 Sec. 3-105. Board. "Board": Until January 1, 2021, the The
9board of trustees of the police pension fund of a municipality
10as established in subsection (a) of Section 3-128.
11 Beginning January 1, 2021, the Board of Trustees of the
12Illinois Municipal Retirement Fund; depending on the context,
13the term may include the former board of trustees of one or
14more of those previously established pension funds.
15(Source: P.A. 83-1440.)
16 (40 ILCS 5/3-108.2)
17 Sec. 3-108.2. Participant. "Participant": A police officer
18or deferred pensioner of the Fund a pension fund, or a
19beneficiary of the Fund pension fund.
20(Source: P.A. 90-507, eff. 8-22-97.)
21 (40 ILCS 5/3-108.3)
22 Sec. 3-108.3. Beneficiary. "Beneficiary": A person
23receiving benefits from the Fund a pension fund, including, but

HB1566- 52 -LRB101 06694 RPS 51721 b
1not limited to, retired pensioners, disabled pensioners, their
2surviving spouses, minor children, disabled children, and
3dependent parents. If a special needs trust as described in
4Section 1396p(d)(4) of Title 42 of the United States Code, as
5amended from time to time, has been established for a disabled
6adult child, then the special needs trust may stand in lieu of
7the disabled adult child as a beneficiary for the purposes of
8this Article.
9(Source: P.A. 96-1143, eff. 7-21-10.)
10 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
11 Sec. 3-110. Creditable service.
12 (a) "Creditable service" is the time served by a police
13officer as a member of a regularly constituted police force of
14a municipality. In computing creditable service furloughs
15without pay exceeding 30 days shall not be counted, but all
16leaves of absence for illness or accident, regardless of
17length, and all periods of disability retirement for which a
18police officer has received no disability pension payments
19under this Article shall be counted.
20 (a-3) Upon the consolidation of the police pension funds
21under this Article into the Fund on January 1, 2021, creditable
22service under any such pension fund shall be deemed to be
23creditable service in the Fund, subject to the following
24provisions:
25 (1) The consolidation of police pension funds into the

HB1566- 53 -LRB101 06694 RPS 51721 b
1 Fund shall not result in the duplication of any service
2 credit based on the same period of service in this or any
3 other pension fund or retirement system subject to this
4 Code.
5 (2) If this Section or any other provision of this
6 Article imposes a limit on the amount of creditable service
7 that may be established for a particular activity or
8 purpose and prior to consolidation a police officer has
9 established periods of creditable service for that
10 activity or purpose in more than one former police pension
11 fund under this Article, which periods are within that
12 limitation for each such fund but together exceed that
13 limitation, then upon consolidation all such credit
14 previously established by the police officer shall be
15 preserved under the Fund, but no additional creditable
16 service for that activity or purpose may be established by
17 that police officer in the Fund.
18 (3) The consolidation of police pension funds into the
19 Fund shall not entitle any person or pension fund to a
20 refund of any contribution or payment previously paid or
21 transferred in order to establish or transfer creditable
22 service under this Article.
23 (a-5) Up to 3 years of time during which the police officer
24receives a disability pension under Section 3-114.1, 3-114.2,
253-114.3, or 3-114.6 shall be counted as creditable service,
26provided that (i) the police officer returns to active service

HB1566- 54 -LRB101 06694 RPS 51721 b
1after the disability for a period at least equal to the period
2for which credit is to be established and (ii) the police
3officer makes contributions to the Fund fund based on the rates
4specified in Section 3-125.1 and the salary upon which the
5disability pension is based. These contributions may be paid at
6any time prior to the commencement of a retirement pension. The
7police officer may, but need not, elect to have the
8contributions deducted from the disability pension or to pay
9them in installments on a schedule approved by the board. If
10not deducted from the disability pension, the contributions
11shall include interest at the rate of 6% per year, compounded
12annually, from the date for which service credit is being
13established to the date of payment. If contributions are paid
14under this subsection (a-5) in excess of those needed to
15establish the credit, the excess shall be refunded. This
16subsection (a-5) applies to persons receiving a disability
17pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
18the effective date of this amendatory Act of the 91st General
19Assembly, as well as persons who begin to receive such a
20disability pension after that date.
21 (b) Creditable service includes all periods of service in
22the military, naval or air forces of the United States entered
23upon while an active police officer of a municipality, provided
24that upon applying for a permanent pension, and in accordance
25with the rules of the board, the police officer pays into the
26Fund fund the amount the officer would have contributed if he

HB1566- 55 -LRB101 06694 RPS 51721 b
1or she had been a regular contributor during such period, to
2the extent that the municipality which the police officer
3served has not made such contributions in the officer's behalf.
4The total amount of such creditable service shall not exceed 5
5years, except that any police officer who on July 1, 1973 had
6more than 5 years of such creditable service shall receive the
7total amount thereof.
8 (b-5) Creditable service includes all periods of service in
9the military, naval, or air forces of the United States entered
10upon before beginning service as an active police officer of a
11municipality, provided that, in accordance with the rules of
12the board, the police officer pays into the Fund fund the
13amount the police officer would have contributed if he or she
14had been a regular contributor during such period, plus an
15amount determined by the Board to be equal to the
16municipality's normal cost of the benefit, plus interest at the
17actuarially assumed rate calculated from the date the employee
18last became a police officer under this Article. The total
19amount of such creditable service shall not exceed 2 years.
20 (c) Creditable service also includes service rendered by a
21police officer while on leave of absence from a police
22department to serve as an executive of an organization whose
23membership consists of members of a police department, subject
24to the following conditions: (i) the police officer is a
25participant of the Fund a fund established under this Article
26with at least 10 years of service as a police officer; (ii) the

HB1566- 56 -LRB101 06694 RPS 51721 b
1police officer received no credit for such service under any
2other retirement system, pension fund, or annuity and benefit
3fund included in this Code; (iii) pursuant to the rules of the
4board the police officer pays to the Fund fund the amount he or
5she would have contributed had the officer been an active
6member of the police department; (iv) the organization pays a
7contribution equal to the municipality's normal cost for that
8period of service; and (v) for all leaves of absence under this
9subsection (c), including those beginning before the effective
10date of this amendatory Act of the 97th General Assembly, the
11police officer continues to remain in sworn status, subject to
12the professional standards of the public employer or those
13terms established in statute.
14 (d)(1) Creditable service also includes periods of
15 service originally established in another police pension
16 fund under this Article or in the Fund established under
17 Article 7 of this Code for which (i) the contributions have
18 been transferred under Section 3-110.7 or Section 7-139.9
19 and (ii) any additional contribution required under
20 paragraph (2) of this subsection has been paid in full in
21 accordance with the requirements of this subsection (d).
22 (2) If the board of the pension fund to which
23 creditable service and related contributions are
24 transferred under Section 7-139.9 determines that the
25 amount transferred is less than the true cost to the
26 pension fund of allowing that creditable service to be

HB1566- 57 -LRB101 06694 RPS 51721 b
1 established, then in order to establish that creditable
2 service the police officer must pay to the pension fund,
3 within the payment period specified in paragraph (3) of
4 this subsection, an additional contribution equal to the
5 difference, as determined by the board in accordance with
6 the rules and procedures adopted under paragraph (6) of
7 this subsection. If the board of the pension fund to which
8 creditable service and related contributions are
9 transferred under Section 3-110.7 determines that the
10 amount transferred is less than the true cost to the
11 pension fund of allowing that creditable service to be
12 established, then the police officer may elect (A) to
13 establish that creditable service by paying to the pension
14 fund, within the payment period specified in paragraph (3)
15 of this subsection (d), an additional contribution equal to
16 the difference, as determined by the board in accordance
17 with the rules and procedures adopted under paragraph (6)
18 of this subsection (d) or (B) to have his or her creditable
19 service reduced by an amount equal to the difference
20 between the amount transferred under Section 3-110.7 and
21 the true cost to the pension fund of allowing that
22 creditable service to be established, as determined by the
23 board in accordance with the rules and procedures adopted
24 under paragraph (6) of this subsection (d).
25 (3) Except as provided in paragraph (4), the additional
26 contribution that is required or elected under paragraph

HB1566- 58 -LRB101 06694 RPS 51721 b
1 (2) of this subsection (d) must be paid to the board (i)
2 within 5 years from the date of the transfer of
3 contributions under Section 3-110.7 or 7-139.9 and (ii)
4 before the police officer terminates service with the fund.
5 The additional contribution may be paid in a lump sum or in
6 accordance with a schedule of installment payments
7 authorized by the board.
8 (4) If the police officer dies in service before
9 payment in full has been made and before the expiration of
10 the 5-year payment period, the surviving spouse of the
11 officer may elect to pay the unpaid amount on the officer's
12 behalf within 6 months after the date of death, in which
13 case the creditable service shall be granted as though the
14 deceased police officer had paid the remaining balance on
15 the day before the date of death.
16 (5) If the additional contribution that is required or
17 elected under paragraph (2) of this subsection (d) is not
18 paid in full within the required time, the creditable
19 service shall not be granted and the police officer (or the
20 officer's surviving spouse or estate) shall be entitled to
21 receive a refund of (i) any partial payment of the
22 additional contribution that has been made by the police
23 officer and (ii) those portions of the amounts transferred
24 under subdivision (a)(1) of Section 3-110.7 or
25 subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
26 represent employee contributions paid by the police

HB1566- 59 -LRB101 06694 RPS 51721 b
1 officer (but not the accumulated interest on those
2 contributions) and interest paid by the police officer to
3 the prior pension fund in order to reinstate service
4 terminated by acceptance of a refund.
5 At the time of paying a refund under this item (5), the
6 pension fund shall also repay to the pension fund from
7 which the contributions were transferred under Section
8 3-110.7 or 7-139.9 the amount originally transferred under
9 subdivision (a)(2) of that Section, plus interest at the
10 rate of 6% per year, compounded annually, from the date of
11 the original transfer to the date of repayment. Amounts
12 repaid to the Article 7 fund under this provision shall be
13 credited to the appropriate municipality.
14 Transferred credit that is not granted due to failure
15 to pay the additional contribution within the required time
16 is lost; it may not be transferred to another pension fund
17 and may not be reinstated in the pension fund from which it
18 was transferred.
19 (6) The Public Employee Pension Fund Division of the
20 Department of Insurance shall establish by rule the manner
21 of making the calculation required under paragraph (2) of
22 this subsection, taking into account the appropriate
23 actuarial assumptions; the police officer's service, age,
24 and salary history; the level of funding of the pension
25 fund to which the credits are being transferred; and any
26 other factors that the Division determines to be relevant.

HB1566- 60 -LRB101 06694 RPS 51721 b
1 The rules may require that all calculations made under
2 paragraph (2) be reported to the Division by the board
3 performing the calculation, together with documentation of
4 the creditable service to be transferred, the amounts of
5 contributions and interest to be transferred, the manner in
6 which the calculation was performed, the numbers relied
7 upon in making the calculation, the results of the
8 calculation, and any other information the Division may
9 deem useful.
10 (e)(1) Creditable service also includes periods of
11 service originally established in the Fund established
12 under Article 7 of this Code for which the contributions
13 have been transferred under Section 7-139.11.
14 (2) If the board of the pension fund to which
15 creditable service and related contributions are
16 transferred under Section 7-139.11 determines that the
17 amount transferred is less than the true cost to the
18 pension fund of allowing that creditable service to be
19 established, then the amount of creditable service the
20 police officer may establish under this subsection (e)
21 shall be reduced by an amount equal to the difference, as
22 determined by the board in accordance with the rules and
23 procedures adopted under paragraph (3) of this subsection.
24 (3) The Public Pension Division of the Department of
25 Financial and Professional Regulation shall establish by
26 rule the manner of making the calculation required under

HB1566- 61 -LRB101 06694 RPS 51721 b
1 paragraph (2) of this subsection, taking into account the
2 appropriate actuarial assumptions; the police officer's
3 service, age, and salary history; the level of funding of
4 the pension fund to which the credits are being
5 transferred; and any other factors that the Division
6 determines to be relevant. The rules may require that all
7 calculations made under paragraph (2) be reported to the
8 Division by the board performing the calculation, together
9 with documentation of the creditable service to be
10 transferred, the amounts of contributions and interest to
11 be transferred, the manner in which the calculation was
12 performed, the numbers relied upon in making the
13 calculation, the results of the calculation, and any other
14 information the Division may deem useful.
15 (4) Until January 1, 2010, a police officer who
16 transferred service from the Fund established under
17 Article 7 of this Code under the provisions of Public Act
18 94-356 may establish additional credit, but only for the
19 amount of the service credit reduction in that transfer, as
20 calculated under paragraph (3) of this subsection (e). This
21 credit may be established upon payment by the police
22 officer of an amount to be determined by the board, equal
23 to (1) the amount that would have been contributed as
24 employee and employer contributions had all of the service
25 been as an employee under this Article, plus interest
26 thereon at the rate of 6% per year, compounded annually

HB1566- 62 -LRB101 06694 RPS 51721 b
1 from the date of service to the date of transfer, less (2)
2 the total amount transferred from the Article 7 Fund, plus
3 (3) interest on the difference at the rate of 6% per year,
4 compounded annually, from the date of the transfer to the
5 date of payment. The additional service credit is allowed
6 under this amendatory Act of the 95th General Assembly
7 notwithstanding the provisions of Article 7 terminating
8 all transferred credits on the date of transfer.
9(Source: P.A. 96-297, eff. 8-11-09; 96-1260, eff. 7-23-10;
1097-651, eff. 1-5-12.)
11 (40 ILCS 5/3-110.7)
12 Sec. 3-110.7. Transfer between Article 3 funds.
13 (a) Until January 1, 2021 (the consolidation date), an An
14active member of a pension fund established under this Article
15may apply for transfer to that fund of his or her creditable
16service and related contributions accumulated in any other
17police pension fund established under this Article, except that
18a police officer may not transfer creditable service under this
19Section from a pension fund unless (i) the police officer
20actively served in the police department under that fund for at
21least 2 years, (ii) the police officer actively served in the
22police department under that fund for less than 2 years but was
23laid off or otherwise involuntarily terminated for a reason
24other than the fault of the officer, or (iii) the police
25officer was not in service in the police department under that

HB1566- 63 -LRB101 06694 RPS 51721 b
1fund on or after the effective date of this Section. Upon
2receiving the application, that other pension fund shall
3transfer to the pension fund in which the applicant currently
4participates an amount equal to:
5 (1) the amounts actually contributed by or on behalf of
6 the applicant to the fund as employee contributions
7 (including any interest paid by the applicant in order to
8 reinstate service), plus interest on those amounts at the
9 rate of 6% per year, compounded annually, from the date of
10 contribution to the date of transfer; plus
11 (2) an amount representing employer contributions,
12 equal to the total amount determined under subdivision (1).
13Participation in that other pension fund shall terminate on the
14date of transfer.
15 (b) An active member of the Fund a pension fund established
16under this Article may reinstate in the Fund service in any
17other pension fund established under this Article that was
18terminated by receipt of a refund, by paying to the Fund that
19other pension fund the amount of the refund plus interest
20thereon at the rate of 6% per year, compounded annually, from
21the date of refund to the date of payment.
22(Source: P.A. 90-460, eff. 8-17-97.)
23 (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
24 Sec. 3-125. Financing; tax.
25 (a) The governing body city council or the board of

HB1566- 64 -LRB101 06694 RPS 51721 b
1trustees of a participating the municipality shall annually
2levy a tax upon all the taxable property of the municipality at
3the rate on the dollar which will produce an amount which, when
4added to the deductions from the salaries or wages of police
5officers, and revenues available from other sources, will equal
6a sum sufficient to meet the annual requirements of the account
7of the participating municipality police pension fund. The
8annual requirements to be provided by such tax levy are equal
9to (1) the normal cost of benefits attributable to the
10participating municipality and its police officers, as
11determined by an enrolled actuary employed by the Fund, the
12pension fund for the year involved, plus (2) an amount
13sufficient to bring the total assets of the account of the
14participating municipality pension fund up to 90% of the total
15actuarial liabilities of the account of the participating
16municipality pension fund by the end of municipal fiscal year
172040, as annually updated and determined by an enrolled actuary
18employed by the Fund Illinois Department of Insurance or by an
19enrolled actuary retained by the pension fund or the
20municipality. In making these determinations, the required
21minimum employer contribution shall be calculated each year as
22a level percentage of payroll over the years remaining up to
23and including fiscal year 2040 and shall be determined under
24the projected unit credit actuarial cost method. The tax shall
25be levied and collected in the same manner as the general taxes
26of the municipality, and in addition to all other taxes now or

HB1566- 65 -LRB101 06694 RPS 51721 b
1hereafter authorized to be levied upon all property within the
2municipality, and shall be in addition to the amount authorized
3to be levied for general purposes as provided by Section 8-3-1
4of the Illinois Municipal Code, approved May 29, 1961, as
5amended. The tax shall be forwarded directly to the treasurer
6of the board within 30 business days after receipt by the
7county.
8 (b) For purposes of determining the required employer
9contribution to the Fund a pension fund, the value of the
10pension fund's assets of the account of the participating
11municipality shall be equal to the actuarial value of the
12pension fund's assets of the account of the participating
13municipality, which shall be calculated as follows:
14 (1) (Blank). On March 30, 2011, the actuarial value of
15 a pension fund's assets shall be equal to the market value
16 of the assets as of that date.
17 (2) In determining the actuarial value of the System's
18 assets of the account of the participating municipality for
19 fiscal years after March 30, 2011, any actuarial gains or
20 losses from investment return incurred in a fiscal year
21 shall be recognized in equal annual amounts over the 5-year
22 period following that fiscal year.
23 (c) If a participating municipality fails to transmit to
24the Fund fund contributions required of it under this Article
25for more than 90 days after the payment of those contributions
26is due, the Fund fund may, after giving notice to the

HB1566- 66 -LRB101 06694 RPS 51721 b
1municipality, certify to the State Comptroller the amounts of
2the delinquent payments in accordance with any applicable rules
3of the Comptroller, and the Comptroller must, beginning in
4fiscal year 2016, deduct and remit to the Fund, for credit to
5the account of the participating municipality, fund the
6certified amounts or a portion of those amounts from the
7following proportions of payments of State funds to the
8municipality:
9 (1) in fiscal year 2016, one-third of the total amount
10 of any payments of State funds to the municipality;
11 (2) in fiscal year 2017, two-thirds of the total amount
12 of any payments of State funds to the municipality; and
13 (3) in fiscal year 2018 and each fiscal year
14 thereafter, the total amount of any payments of State funds
15 to the municipality.
16 The State Comptroller may not deduct from any payments of
17State funds to the municipality more than the amount of
18delinquent payments certified to the State Comptroller by the
19Fund fund.
20 (d) (Blank). The police pension fund shall consist of the
21following moneys which shall be set apart by the treasurer of
22the municipality:
23 (1) All moneys derived from the taxes levied hereunder;
24 (2) Contributions by police officers under Section
25 3-125.1;
26 (3) All moneys accumulated by the municipality under

HB1566- 67 -LRB101 06694 RPS 51721 b
1 any previous legislation establishing a fund for the
2 benefit of disabled or retired police officers;
3 (4) Donations, gifts or other transfers authorized by
4 this Article.
5 (e) (Blank). The Commission on Government Forecasting and
6Accountability shall conduct a study of all funds established
7under this Article and shall report its findings to the General
8Assembly on or before January 1, 2013. To the fullest extent
9possible, the study shall include, but not be limited to, the
10following:
11 (1) fund balances;
12 (2) historical employer contribution rates for each
13 fund;
14 (3) the actuarial formulas used as a basis for employer
15 contributions, including the actual assumed rate of return
16 for each year, for each fund;
17 (4) available contribution funding sources;
18 (5) the impact of any revenue limitations caused by
19 PTELL and employer home rule or non-home rule status; and
20 (6) existing statutory funding compliance procedures
21 and funding enforcement mechanisms for all municipal
22 pension funds.
23(Source: P.A. 99-8, eff. 7-9-15.)
24 (40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1)
25 Sec. 3-125.1. Contributions by police officers. Each

HB1566- 68 -LRB101 06694 RPS 51721 b
1police officer shall contribute to the Fund pension fund the
2following percentages of salary for the periods stated:
3Beginning July 1, 1909 and prior to July 23, 1943, 1% (except
4that prior to July 1, 1921 not more than one dollar per month
5shall be deducted, and except that beginning July 1, 1921 and
6prior to July 1, 1927 not more than $2 per month shall be
7deducted); beginning July 23, 1943 and prior to July 20, 1949,
83%; beginning July 20, 1949 and prior to July 17, 1959, 5%;
9beginning July 17, 1959 and prior to July 1, 1971, 7%;
10beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%;
11beginning July 1, 1975 and prior to January 1, 1987, 8 1/2%;
12beginning January 1, 1987 and prior to January 1, 2001, 9%; and
13beginning January 1, 2001, 9.91%. Such sums shall be paid or
14deducted monthly. Contribution to the self-managed plan shall
15be no less than 10% of salary.
16 "Salary" means the annual salary, including longevity,
17attached to the police officer's rank, as established by the
18municipality's appropriation ordinance, including any
19compensation for overtime which is included in the salary so
20established, but excluding any "overtime pay", "holiday pay",
21"bonus pay", "merit pay", or any other cash benefit not
22included in the salary so established.
23(Source: P.A. 91-939, eff. 2-1-01.)
24 (40 ILCS 5/3-128) (from Ch. 108 1/2, par. 3-128)
25 Sec. 3-128. Board created.

HB1566- 69 -LRB101 06694 RPS 51721 b
1 (a) This subsection (a) applies until January 1, 2021.
2A board of 5 members shall constitute a board of trustees to
3administer the pension fund and to designate the beneficiaries
4thereof. The board shall be known as the "Board of Trustees of
5the Police Pension Fund" of the municipality.
6 Two members of the board shall be appointed by the mayor or
7president of the board of trustees of the municipality
8involved. The 3rd and 4th members of the board shall be elected
9from the active participants of the pension fund by such active
10participants. The 5th member shall be elected by and from the
11beneficiaries.
12 One of the members appointed by the mayor or president of
13the board of trustees shall serve for one year beginning on the
142nd Tuesday in May after the municipality comes under this
15Article. The other appointed member shall serve for 2 years
16beginning on the same date. Their successors shall serve for 2
17years each or until their successors are appointed and
18qualified.
19 (b) The members of the boards of trustees serving on
20December 31, 2020 may continue to exercise the powers of that
21office until March 1, 2021 for the sole purpose of assisting in
22the consolidation of their respective pension funds, but
23subject to the supervision and requirements of the Transition
24Board and the Illinois Municipal Retirement Fund.
25 (c) Beginning January 1, 2021, the Board of Trustees of the
26Illinois Municipal Retirement Fund shall assume the duties of

HB1566- 70 -LRB101 06694 RPS 51721 b
1the former boards of trustees.
2 The election for board members shall be held biennially on
3the 3rd Monday in April, at such place or places in the
4municipality and under the Australian ballot system and such
5other regulations as shall be prescribed by the appointed
6members of the board.
7 The active pension fund participants shall be entitled to
8vote only for the active participant members of the board. All
9beneficiaries of legal age may vote only for the member chosen
10from among the beneficiaries. No person shall be entitled to
11cast more than one ballot at such election. The term of elected
12members shall be 2 years, beginning on the 2nd Tuesday of the
13first May after the election.
14 Upon the death, resignation or inability to act of any
15elected board member, his or her successor shall be elected for
16the unexpired term at a special election, to be called by the
17board and conducted in the same manner as the regular biennial
18election.
19 Members of the board shall neither receive nor have any
20right to receive any salary from the pension fund for services
21performed as trustees in that office.
22(Source: P.A. 83-1440.)
23 (40 ILCS 5/3-134) (from Ch. 108 1/2, par. 3-134)
24 Sec. 3-134. To submit annual list of Fund fund payments. To
25submit annually to the governing body of each participating

HB1566- 71 -LRB101 06694 RPS 51721 b
1municipality city council or board of trustees at the close of
2the municipality's fiscal year, a list of persons entitled to
3payments from the Fund that are chargeable to the account of
4the participating municipality fund, stating the amount of
5payments, and their purpose, as ordered by the Board board. It
6shall also include items of income accrued to the account of
7the participating municipality fund during the fiscal year. The
8list shall be signed by the secretary and president of the
9Board board, and attested under oath. A resolution or order for
10the payment of money shall not be valid unless approved by a
11majority of the Board board members, and signed by the
12president and secretary of the Board board.
13(Source: P.A. 83-1440.)
14 (40 ILCS 5/3-135) (from Ch. 108 1/2, par. 3-135)
15 Sec. 3-135. To invest funds. To determine the limitations
16on the amounts of cash to be invested in order to maintain such
17cash balances as may be deemed advisable to meet current
18annuity, benefit, and expense requirements, and to invest the
19remaining available cash in securities, in accordance with the
20prudent person investment rule and the other provisions of this
21Article. Beginning on the consolidation date, the Article 1 and
221A restrictions on the investment of Article 3 Funds no longer
23apply, except to the extent that they do not also apply to
24Article 7 of this Code. Beginning January 1, 1998, the board
25shall invest funds in accordance with Sections 1-113.1 through

HB1566- 72 -LRB101 06694 RPS 51721 b
11-113.10 of this Code.
2(Source: P.A. 90-507, eff. 8-22-97.)
3 (40 ILCS 5/3-141) (from Ch. 108 1/2, par. 3-141)
4 Sec. 3-141. Annual report by treasurer. On the 2nd Tuesday
5in May annually through 2021, the treasurer of the municipality
6and all other officials of the municipality who had the custody
7of any pension funds herein provided, shall make a sworn
8statement to the pension board, and to the mayor and council or
9president and board of trustees of the municipality, of all
10moneys received and paid out by them on account of the pension
11fund during the year, and of the amount of funds then on hand
12and owing to the pension fund. The final report required under
13this subsection shall be due in May of 2021 and shall include
14the period up to and including the consolidation of the
15municipality's pension fund into the Fund. All surplus then
16remaining with any official other than the treasurer shall be
17paid to the treasurer of the municipality or as directed by the
18Board. Upon demand of the Board pension board, any official
19shall furnish a statement relative to the official method of
20collection or handling of the pension funds. All books and
21records of that official shall be produced at any time by him
22for examination and inspection by the Board board.
23(Source: P.A. 83-1440.)
24 (40 ILCS 5/3-141a new)

HB1566- 73 -LRB101 06694 RPS 51721 b
1 Sec. 3-141a. Termination of participation by a
2participating municipality. If a participating municipality
3terminates participation because it fails to meet the
4requirements of Section 3-103, it shall pay to the Fund the
5amount equal to any net debit balance in its municipality
6account and any account receivable. Its successors, assigns,
7and transferees of its assets shall be obligated to make this
8payment to the extent of the value of assets transferred to
9them. The Fund shall pay an amount equal to any net credit
10balance to the participating municipality, its successors or
11assigns. Any remaining net debit or credit balance not
12collectible or payable shall be transferred to a terminated
13municipality reserve account. The Fund shall pay to each police
14officer of the participating municipality an amount equal to
15his or her credits in the employee reserves. The employees
16shall have no further rights to any benefits from the Fund,
17except that annuities awarded prior to the date of termination
18shall continue to be paid.
19 (40 ILCS 5/3-141b new)
20 Sec. 3-141b. Authorizations.
21 (a) Each participating municipality shall:
22 (1) deduct all normal and additional contributions
23 from each payment of earnings payable to each participating
24 employee who is entitled to any earnings from the
25 municipality, and remit all normal and additional

HB1566- 74 -LRB101 06694 RPS 51721 b
1 contributions immediately to the Board; and
2 (2) pay to the Board contributions required by this
3 Article.
4 (b) Each participating employee shall, by virtue of the
5payment of contributions to this Fund, receive a vested
6interest in the annuities and benefits provided in this Article
7and in consideration of such vested interest shall be deemed to
8have agreed and authorized the deduction from earnings of all
9contributions payable to this Fund in accordance with this
10Article.
11 (c) Payment of earnings less the amounts of contributions
12provided in this Article shall be a full and complete discharge
13of all claims for payment for services rendered by any employee
14during the period covered by any such payment.
15 (40 ILCS 5/4-102.1 new)
16 Sec. 4-102.1. Fund. "Fund" or "pension fund": Until January
171, 2021, a firefighters' pension fund established by a
18municipality under this Article.
19 Beginning January 1, 2021, "Fund" or "pension fund" means
20the Illinois Municipal Retirement Fund with respect to this
21Article; depending on the context, the terms may include one or
22more of those previously established pension funds.
23 (40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
24 Sec. 4-103. Municipality; participating municipality;

HB1566- 75 -LRB101 06694 RPS 51721 b
1governing body.
2 (a) "Municipality": (1) Any city, township, village or
3incorporated town of 5,000 or more but less than 500,000
4inhabitants, and any fire protection district having any
5full-time paid firefighters, and (2) any city, village,
6incorporated town or township of less than 5,000 inhabitants
7having a full-time paid fire department which adopts the
8provisions of this Article article pursuant to the provisions
9of Section 4-141.
10 (b) The term "participating municipality" means a
11municipality, as defined in subsection (a), that both is
12required (or has elected) to and does in fact participate in
13the Fund with respect to its firefighters under this Article.
14 (c) The term "governing body", "city council", or "board of
15trustees" includes the board of trustees of a fire protection
16district and the board of town trustees or other persons
17empowered to draft the tentative budget and appropriation
18ordinance and the electors of such a township acting at the
19annual or special meeting of town electors.
20(Source: P.A. 83-1440.)
21 (40 ILCS 5/4-105) (from Ch. 108 1/2, par. 4-105)
22 Sec. 4-105. Board. "Board": Until January 1, 2021, the The
23"Board of Trustees of the Firefighters' Pension Fund" of a
24municipality as established in subsection (a) of Section 4-121.
25 Beginning January 1, 2021, the Board of Trustees of the

HB1566- 76 -LRB101 06694 RPS 51721 b
1Illinois Municipal Retirement Fund; depending on the context,
2the term may include the former board of trustees of one or
3more of those previously established pension funds.
4(Source: P.A. 83-1440.)
5 (40 ILCS 5/4-105c)
6 Sec. 4-105c. Participant. "Participant": A firefighter or
7deferred pensioner of the Fund a pension fund, or a beneficiary
8of the Fund pension fund.
9(Source: P.A. 90-507, eff. 8-22-97.)
10 (40 ILCS 5/4-105d)
11 Sec. 4-105d. Beneficiary. "Beneficiary": A person
12receiving benefits from the Fund a pension fund, including, but
13not limited to, retired pensioners, disabled pensioners, their
14surviving spouses, minor children, disabled children, and
15dependent parents.
16(Source: P.A. 90-507, eff. 8-22-97.)
17 (40 ILCS 5/4-106.5 new)
18 Sec. 4-106.5. Authorized agent of a participating
19municipality.
20 (a) Each participating municipality shall appoint an
21authorized agent who shall have the powers and duties set forth
22in this Section. In the absence of such an appointment, the
23duties of the authorized agent shall devolve upon the clerk or

HB1566- 77 -LRB101 06694 RPS 51721 b
1secretary of the municipality. The authorized agent may be the
2same person appointed as the authorized agent under Section
37-135.
4 (b) The authorized agent of the municipality shall have the
5following powers and duties:
6 (1) To certify to the Fund whether or not a given
7 person is authorized to participate in the Fund.
8 (2) To certify to the Fund when a participating
9 employee is on a leave of absence authorized by the
10 municipality.
11 (3) To request the proper officer to cause employee
12 contributions to be withheld from salary and promptly
13 transmitted to the Fund.
14 (4) To request the proper officer to cause municipality
15 contributions to be promptly forwarded to the Fund.
16 (5) To forward promptly to all participating employees
17 any communications for such employees from the Fund or the
18 municipality.
19 (6) To forward promptly to the Board of the Fund all
20 applications, claims reports, and other communications
21 delivered to the agent by participating employees.
22 (7) To perform all duties related to the administration
23 of the Fund as requested by the Fund or the governing body
24 of the municipality.
25 (c) The governing body of each participating municipality
26may delegate either or both of the following powers to its

HB1566- 78 -LRB101 06694 RPS 51721 b
1authorized agent:
2 (1) To file a petition for nomination of an executive
3 trustee of the Fund.
4 (2) To cast the ballot for election of an executive
5 trustee of the Fund.
6 If a governing body does not authorize its agent to perform
7the powers set forth in this Section, they shall be performed
8by the governing body itself, unless the governing body by
9resolution duly certified to the Fund delegates them to some
10other officer or employee.
11 (d) The delivery of any communication or document by an
12employee or a municipality to the authorized agent of the
13municipality does not constitute delivery to the Fund.
14 (40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
15 Sec. 4-108. Creditable service.
16 (a) Creditable service is the time served as a firefighter
17of a municipality. In computing creditable service, furloughs
18and leaves of absence without pay exceeding 30 days in any one
19year shall not be counted, but leaves of absence for illness or
20accident regardless of length, and periods of disability for
21which a firefighter received no disability pension payments
22under this Article, shall be counted.
23 (a-5) Upon the consolidation of the firefighters' pension
24funds under this Article into the Illinois Municipal Retirement
25Fund on January 1, 2021, creditable service under any

HB1566- 79 -LRB101 06694 RPS 51721 b
1firefighters' pension fund shall be deemed to be creditable
2service in the Fund, subject to the following provisions:
3 (1) The consolidation of firefighters' pension funds
4 into the Illinois Municipal Retirement Fund shall not
5 result in the duplication of any service credit based on
6 the same period of service in this or any other pension
7 fund or retirement system subject to this Code.
8 (2) If this Section or any other provision of this
9 Article imposes a limit on the amount of creditable service
10 that may be established for a particular activity or
11 purpose, and prior to consolidation a firefighter has
12 established periods of creditable service for that
13 activity or purpose in more than one former firefighters'
14 pension fund under this Article, which periods are within
15 that limitation for each such fund but together exceed that
16 limitation, then upon consolidation all such credit
17 previously established by the firefighter shall be
18 preserved under the Fund, but no additional creditable
19 service for that activity or purpose may be established by
20 that firefighter in the Fund.
21 (3) The consolidation of firefighters' pension funds
22 into the Illinois Municipal Retirement Fund shall not
23 entitle any person or pension fund to a refund of any
24 contribution or payment previously paid or transferred in
25 order to establish or transfer creditable service under
26 this Article.

HB1566- 80 -LRB101 06694 RPS 51721 b
1 (b) Furloughs and leaves of absence of 30 days or less in
2any one year may be counted as creditable service, if the
3firefighter makes the contribution to the Fund fund that would
4have been required had he or she not been on furlough or leave
5of absence. To qualify for this creditable service, the
6firefighter must pay the required contributions to the Fund
7fund not more than 90 days subsequent to the termination of the
8furlough or leave of absence, to the extent that the
9municipality has not made such contribution on his or her
10behalf.
11 (c) Creditable service includes:
12 (1) Service in the military, naval or air forces of the
13 United States entered upon when the person was an active
14 firefighter, provided that, upon applying for a permanent
15 pension, and in accordance with the rules of the board the
16 firefighter pays into the Fund fund the amount that would
17 have been contributed had he or she been a regular
18 contributor during such period of service, if and to the
19 extent that the municipality which the firefighter served
20 made no such contributions in his or her behalf. The total
21 amount of such creditable service shall not exceed 5 years,
22 except that any firefighter who on July 1, 1973 had more
23 than 5 years of such creditable service shall receive the
24 total amount thereof as of that date.
25 (1.5) Up to 24 months of service in the military,
26 naval, or air forces of the United States that was served

HB1566- 81 -LRB101 06694 RPS 51721 b
1 prior to employment by a municipality or fire protection
2 district as a firefighter. To receive the credit for the
3 military service prior to the employment as a firefighter,
4 the firefighter must apply in writing to the Fund fund and
5 must make contributions to the Fund fund equal to (i) the
6 employee contributions that would have been required had
7 the service been rendered as a member, plus (ii) an amount
8 determined by the Fund fund to be equal to the employer's
9 normal cost of the benefits accrued for that military
10 service, plus (iii) interest at the prescribed rate
11 actuarially assumed rate provided by the Department of
12 Financial and Professional Regulation, compounded annually
13 from the first date of membership in the Fund fund to the
14 date of payment on items (i) and (ii). The changes to this
15 paragraph (1.5) made by Public Act 95-1056 this amendatory
16 Act of the 95th General Assembly apply only to
17 participating employees in service on or after April 10,
18 2009 (its effective date).
19 (2) Service prior to July 1, 1976 by a firefighter
20 initially excluded from participation by reason of age who
21 elected to participate and paid the required contributions
22 for such service.
23 (3) Up to 8 years of service by a firefighter as an
24 officer in a statewide firefighters' association when he is
25 on a leave of absence from a municipality's payroll,
26 provided that (i) the firefighter has at least 10 years of

HB1566- 82 -LRB101 06694 RPS 51721 b
1 creditable service as an active firefighter, (ii) the
2 firefighter contributes to the Fund fund the amount that he
3 would have contributed had he remained an active member of
4 the Fund fund, (iii) the employee or statewide firefighter
5 association contributes to the Fund fund an amount equal to
6 the employer's required contribution as determined by the
7 board, and (iv) for all leaves of absence under this
8 subdivision (3), including those beginning before January
9 5, 2012 (the effective date of Public Act 97-651) this
10 amendatory Act of the 97th General Assembly, the
11 firefighter continues to remain in sworn status, subject to
12 the professional standards of the public employer or those
13 terms established in statute.
14 (4) Time spent as an on-call fireman for a
15 municipality, calculated at the rate of one year of
16 creditable service for each 5 years of time spent as an
17 on-call fireman, provided that (i) the firefighter has at
18 least 18 years of creditable service as an active
19 firefighter, (ii) the firefighter spent at least 14 years
20 as an on-call firefighter for the municipality, (iii) the
21 firefighter applies for such creditable service within 30
22 days after August 23, 1989 (the effective date of Public
23 Act 86-273) this amendatory Act of 1989, (iv) the
24 firefighter contributes to the Fund an amount representing
25 employee contributions for the number of years of
26 creditable service granted under this subdivision (4),

HB1566- 83 -LRB101 06694 RPS 51721 b
1 based on the salary and contribution rate in effect for the
2 firefighter at the date of entry into the Fund, to be
3 determined by the board, and (v) not more than 3 years of
4 creditable service may be granted under this subdivision
5 (4).
6 Except as provided in Section 4-108.5, creditable
7 service shall not include time spent as a volunteer
8 firefighter, whether or not any compensation was received
9 therefor. The change made in this Section by Public Act
10 83-0463 is intended to be a restatement and clarification
11 of existing law, and does not imply that creditable service
12 was previously allowed under this Article for time spent as
13 a volunteer firefighter.
14 (5) Time served between July 1, 1976 and July 1, 1988
15 in the position of protective inspection officer or
16 administrative assistant for fire services, for a
17 municipality with a population under 10,000 that is located
18 in a county with a population over 3,000,000 and that
19 maintains a firefighters' pension fund under this Article,
20 if the position included firefighting duties,
21 notwithstanding that the person may not have held an
22 appointment as a firefighter, provided that application is
23 made to the pension fund within 30 days after November 19,
24 1991 (the effective date of Public Act 87-794) this
25 amendatory Act of 1991, and the corresponding
26 contributions are paid for the number of years of service

HB1566- 84 -LRB101 06694 RPS 51721 b
1 granted, based upon the salary and contribution rate in
2 effect for the firefighter at the date of entry into the
3 pension fund, as determined by the Board.
4 (6) Service before becoming a participant by a
5 firefighter initially excluded from participation by
6 reason of age who becomes a participant under the amendment
7 to Section 4-107 made by Public Act 87-1265 this amendatory
8 Act of 1993 and pays the required contributions for such
9 service.
10 (7) Up to 3 years of time during which the firefighter
11 receives a disability pension under Section 4-110,
12 4-110.1, or 4-111, provided that (i) the firefighter
13 returns to active service after the disability for a period
14 at least equal to the period for which credit is to be
15 established and (ii) the firefighter makes contributions
16 to the Fund fund based on the rates specified in Section
17 4-118.1 and the salary upon which the disability pension is
18 based. These contributions may be paid at any time prior to
19 the commencement of a retirement pension. The firefighter
20 may, but need not, elect to have the contributions deducted
21 from the disability pension or to pay them in installments
22 on a schedule approved by the board. If not deducted from
23 the disability pension, the contributions shall include
24 interest at the rate of 6% per year, compounded annually,
25 from the date for which service credit is being established
26 to the date of payment. If contributions are paid under

HB1566- 85 -LRB101 06694 RPS 51721 b
1 this subdivision (c)(7) in excess of those needed to
2 establish the credit, the excess shall be refunded. This
3 subdivision (c)(7) applies to persons receiving a
4 disability pension under Section 4-110, 4-110.1, or 4-111
5 on the effective date of this amendatory Act of the 91st
6 General Assembly, as well as persons who begin to receive
7 such a disability pension after that date.
8 (8) Up to 6 years of service as a police officer and
9 participant in the an Article 3 Fund with the participating
10 municipality police pension fund administered by the unit
11 of local government that employs the firefighter under this
12 Article, provided that the service has been transferred to,
13 and the required payment received by, the Article 4 Fund
14 fund in accordance with Section 3-110.12 of this Code.
15(Source: P.A. 100-544, eff. 11-8-17.)
16 (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
17 Sec. 4-118. Financing; tax.
18 (a) The governing body city council or the board of
19trustees of a participating the municipality shall annually
20levy a tax upon all the taxable property of the municipality at
21the rate on the dollar which will produce an amount which, when
22added to the deductions from the salaries or wages of
23firefighters and revenues available from other sources, will
24equal a sum sufficient to meet the annual actuarial
25requirements of the account of the participating municipality

HB1566- 86 -LRB101 06694 RPS 51721 b
1pension fund, as determined by an enrolled actuary employed by
2the Fund Illinois Department of Insurance or by an enrolled
3actuary retained by the pension fund or municipality. For the
4purposes of this Section, the annual actuarial requirements of
5the account of the participating municipality pension fund are
6equal to (1) the normal cost of benefits attributable to the
7participating municipality and its firefighters, as determined
8by an enrolled actuary employed by the Fund of the pension
9fund, or 17.5% of the salaries and wages to be paid to
10firefighters for the year involved, whichever is greater, plus
11(2) an annual amount sufficient to bring the total assets of
12the account of the participating municipality pension fund up
13to 90% of the total actuarial liabilities of the account of the
14participating municipality pension fund by the end of municipal
15fiscal year 2040, as annually updated and determined by an
16enrolled actuary employed by the Fund Illinois Department of
17Insurance or by an enrolled actuary retained by the pension
18fund or the municipality. In making these determinations, the
19required minimum employer contribution shall be calculated
20each year as a level percentage of payroll over the years
21remaining up to and including fiscal year 2040 and shall be
22determined under the projected unit credit actuarial cost
23method. The amount to be applied towards the amortization of
24the unfunded accrued liability in any year shall not be less
25than the annual amount required to amortize the unfunded
26accrued liability, including interest, as a level percentage of

HB1566- 87 -LRB101 06694 RPS 51721 b
1payroll over the number of years remaining in the 40 year
2amortization period.
3 (a-5) For purposes of determining the required employer
4contribution to the Fund a pension fund, the value of the
5pension fund's assets of the account of the participating
6municipality shall be equal to the actuarial value of the
7pension fund's assets of the account of the participating
8municipality, which shall be calculated as follows:
9 (1) (Blank). On March 30, 2011, the actuarial value of
10 a pension fund's assets shall be equal to the market value
11 of the assets as of that date.
12 (2) In determining the actuarial value of the pension
13 fund's assets of the account of the participating
14 municipality for fiscal years after March 30, 2011, any
15 actuarial gains or losses from investment return incurred
16 in a fiscal year shall be recognized in equal annual
17 amounts over the 5-year period following that fiscal year.
18 (b) The tax shall be levied and collected in the same
19manner as the general taxes of the municipality, and shall be
20in addition to all other taxes now or hereafter authorized to
21be levied upon all property within the municipality, and in
22addition to the amount authorized to be levied for general
23purposes, under Section 8-3-1 of the Illinois Municipal Code or
24under Section 14 of the Fire Protection District Act. The tax
25shall be forwarded directly to the treasurer of the Fund board
26within 30 business days of receipt by the county (or, in the

HB1566- 88 -LRB101 06694 RPS 51721 b
1case of amounts added to the tax levy under subsection (f),
2used by the municipality to pay the employer contributions
3required under subsection (b-1) of Section 15-155 of this
4Code).
5 (b-5) If a participating municipality fails to transmit to
6the Fund fund contributions required of it under this Article
7for more than 90 days after the payment of those contributions
8is due, the Fund fund may, after giving notice to the
9municipality, certify to the State Comptroller the amounts of
10the delinquent payments in accordance with any applicable rules
11of the Comptroller, and the Comptroller must, beginning in
12fiscal year 2016, deduct and remit to the Fund, for credit to
13the account of the participating municipality, fund the
14certified amounts or a portion of those amounts from the
15following proportions of payments of State funds to the
16municipality:
17 (1) in fiscal year 2016, one-third of the total amount
18 of any payments of State funds to the municipality;
19 (2) in fiscal year 2017, two-thirds of the total amount
20 of any payments of State funds to the municipality; and
21 (3) in fiscal year 2018 and each fiscal year
22 thereafter, the total amount of any payments of State funds
23 to the municipality.
24 The State Comptroller may not deduct from any payments of
25State funds to the municipality more than the amount of
26delinquent payments certified to the State Comptroller by the

HB1566- 89 -LRB101 06694 RPS 51721 b
1Fund fund.
2 (c) The Board board shall make available to the membership
3and the general public for inspection and copying at reasonable
4times the most recent Actuarial Valuation Balance Sheet and Tax
5Levy Requirement issued to the Fund fund by the Department of
6Insurance.
7 (d) (Blank). The firefighters' pension fund shall consist
8of the following moneys which shall be set apart by the
9treasurer of the municipality: (1) all moneys derived from the
10taxes levied hereunder; (2) contributions by firefighters as
11provided under Section 4-118.1; (3) all rewards in money, fees,
12gifts, and emoluments that may be paid or given for or on
13account of extraordinary service by the fire department or any
14member thereof, except when allowed to be retained by
15competitive awards; and (4) any money, real estate or personal
16property received by the board.
17 (e) (Blank). For the purposes of this Section, "enrolled
18actuary" means an actuary: (1) who is a member of the Society
19of Actuaries or the American Academy of Actuaries; and (2) who
20is enrolled under Subtitle C of Title III of the Employee
21Retirement Income Security Act of 1974, or who has been engaged
22in providing actuarial services to one or more public
23retirement systems for a period of at least 3 years as of July
241, 1983.
25 (f) The corporate authorities of a municipality that
26employs a person who is described in subdivision (d) of Section

HB1566- 90 -LRB101 06694 RPS 51721 b
14-106 may add to the tax levy otherwise provided for in this
2Section an amount equal to the projected cost of the employer
3contributions required to be paid by the municipality to the
4State Universities Retirement System under subsection (b-1) of
5Section 15-155 of this Code.
6 (g) (Blank). The Commission on Government Forecasting and
7Accountability shall conduct a study of all funds established
8under this Article and shall report its findings to the General
9Assembly on or before January 1, 2013. To the fullest extent
10possible, the study shall include, but not be limited to, the
11following:
12 (1) fund balances;
13 (2) historical employer contribution rates for each
14 fund;
15 (3) the actuarial formulas used as a basis for employer
16 contributions, including the actual assumed rate of return
17 for each year, for each fund;
18 (4) available contribution funding sources;
19 (5) the impact of any revenue limitations caused by
20 PTELL and employer home rule or non-home rule status; and
21 (6) existing statutory funding compliance procedures
22 and funding enforcement mechanisms for all municipal
23 pension funds.
24(Source: P.A. 99-8, eff. 7-9-15.)
25 (40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)

HB1566- 91 -LRB101 06694 RPS 51721 b
1 Sec. 4-118.1. Contributions by firefighters.
2 (a) Beginning January 1, 1976 and until August 6, 1999 (the
3effective date of Public Act 91-466) this amendatory Act of the
491st General Assembly, each firefighter shall contribute to the
5pension fund 6 3/4% of salary towards the cost of his or her
6pension. Beginning August 6, 1999 on the effective date of this
7amendatory Act of the 91st General Assembly, each firefighter
8shall contribute to the pension fund 6.955% of salary towards
9the cost of his or her pension.
10 (b) In addition, beginning January 1, 1976, each
11firefighter shall contribute 1% of salary toward the cost of
12the increase in pension provided in Section 4-109.1; beginning
13January 1, 1987, such contribution shall be 1.5% of salary;
14beginning July 1, 2004, the contribution shall be 2.5% of
15salary.
16 (c) Beginning on July 1, 2004 (the effective date of Public
17Act 93-689) this amendatory Act of the 93rd General Assembly,
18each firefighter who elects to receive a pension under Section
194-109.3 and who has participated in at least one other pension
20fund under this Article for a period of at least one year shall
21contribute an additional 1.0% of salary toward the cost of the
22increase in pensions provided in Section 4-109.3; except that
23beginning January 1, 2021, no additional contributions shall be
24paid under this subsection (c).
25 In the event that a firefighter does not elect to receive a
26retirement pension provided under Section 4-109.3 from one or

HB1566- 92 -LRB101 06694 RPS 51721 b
1more of the pension funds under this Article in which the
2firefighter has credit, he or she shall, upon withdrawal from
3the last pension fund as defined in Section 4-109.3, be
4entitled to receive, from each such fund to which he or she has
5paid additional contributions under this subsection (c) and
6from which he or she does not receive a refund under Section
74-116, a refund of those contributions without interest.
8Beginning January 1, 2021, however, such refunds shall be
9payable from the Downstate Firefighters Pension Fund and
10chargeable to the appropriate municipal accounts and reserves.
11 A refund of total contributions to a particular firefighter
12pension fund under Section 4-116 shall include any refund of
13additional contributions paid to that fund under this
14subsection (c), but a firefighter who accepts a refund from a
15pension fund under Section 4-116 is thereafter ineligible to
16receive a pension provided under Section 4-109.3 from that
17fund. A firefighter who meets the eligibility requirements of
18Section 4-109.3 may receive a pension under Section 4-109.3
19from any pension fund from which the firefighter has not
20received a refund under Section 4-116 or under this subsection
21(c); except that beginning January 1, 2021 (the consolidation
22date), such pensions shall be payable from the Downstate
23Firefighters Pension Fund as provided in Section 4-109.3 and
24chargeable to the appropriate municipal accounts and reserves.
25 (d) "Salary" means the annual salary, including longevity,
26attached to the firefighter's rank, as established by the

HB1566- 93 -LRB101 06694 RPS 51721 b
1municipality appropriation ordinance, including any
2compensation for overtime which is included in the salary so
3established, but excluding any "overtime pay", "holiday pay",
4"bonus pay", "merit pay", or any other cash benefit not
5included in the salary so established.
6 (e) The contributions shall be deducted and withheld from
7the salary of firefighters.
8(Source: P.A. 93-689, eff. 7-1-04.)
9 (40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)
10 Sec. 4-121. Board created.
11 (a) This subsection (a) applies until January 1, 2021.
12 There is created in each municipality or fire protection
13district a board of trustees to be known as the "Board of
14Trustees of the Firefighters' Pension Fund". The membership of
15the board for each municipality shall be, respectively, as
16follows: in cities, the treasurer, clerk, marshal or chief
17officer of the fire department, and the comptroller if there is
18one, or if not, the mayor; in each township, village or
19incorporated town, the president of the municipality's board of
20trustees, the village or town clerk, village or town attorney,
21village or town treasurer, and the chief officer of the fire
22department; and in each fire protection district, the president
23and other 2 members of its board of trustees and the marshal or
24chief of its fire department or service, as the case may be;
25and in all the municipalities above designated 3 additional

HB1566- 94 -LRB101 06694 RPS 51721 b
1persons chosen from their active firefighters and one other
2person who has retired under the Firemen's Pension Fund Act of
31919, or this Article. The Notwithstanding any provision of
4this Section to the contrary, the term of office of each member
5of a board established on or before the 3rd Monday in April,
62006 shall terminate on the 3rd Monday in April, 2006, but all
7incumbent members shall continue to exercise all of the powers
8and be subject to all of the duties of a member of the board
9until all the new members of the board take office.
10 Beginning on the 3rd Monday in April, 2006 and until
11January 1, 2021, the board of trustees for each municipality or
12fire protection district shall consist of 5 members. Two
13members of the board shall be appointed by the mayor or
14president of the board of trustees of the municipality or fire
15protection district involved. Two members of the board shall be
16active participants of the pension fund who are elected from
17the active participants of the fund. One member of the board
18shall be a person who is retired under the Firemen's Pension
19Fund Act of 1919 or this Article who is elected from persons
20retired under the Firemen's Pension Fund Act of 1919 or this
21Article.
22 For the purposes of this Section, a firefighter receiving a
23disability pension shall be considered a retired firefighter.
24In the event that there are no retired firefighters under the
25Fund or if none is willing to serve on the board, then an
26additional active firefighter shall be elected to the board in

HB1566- 95 -LRB101 06694 RPS 51721 b
1lieu of the retired firefighter that would otherwise be
2elected.
3 If the regularly constituted fire department of a
4municipality is dissolved and Section 4-106.1 is not
5applicable, the board shall continue to exist and administer
6the Fund so long as there continues to be any annuitant or
7deferred pensioner in the Fund. In such cases, elections shall
8continue to be held as specified in this Section, except that:
9(1) deferred pensioners shall be deemed to be active members
10for the purposes of such elections; (2) any otherwise
11unfillable positions on the board, including ex officio
12positions, shall be filled by election from the remaining
13firefighters and deferred pensioners of the Fund, to the extent
14possible; and (3) if the membership of the board falls below 3
15persons, the Illinois Director of Insurance or his designee
16shall be deemed a member of the board, ex officio.
17 (b) The members of the boards of trustees serving on
18December 31, 2020 may continue to exercise the powers of that
19office until March 1, 2021 for the sole purpose of assisting in
20the consolidation of their respective pension funds, but
21subject to the supervision and requirements of the Transition
22Board.
23 (c) Beginning January 1, 2021, the Board of Trustees of the
24Illinois Municipal Retirement Fund shall assume the duties of
25the former boards of trustees.
26 The members chosen from the active and retired firefighters

HB1566- 96 -LRB101 06694 RPS 51721 b
1shall be elected by ballot at elections to be held on the 3rd
2Monday in April of the applicable years under the Australian
3ballot system, at such place or places, in the municipality,
4and under such regulations as shall be prescribed by the board.
5 No person shall cast more than one vote for each candidate
6for whom he or she is eligible to vote. In the elections for
7board members to be chosen from the active firefighters, all
8active firefighters and no others may vote. In the elections
9for board members to be chosen from retired firefighters, the
10retired firefighters and no others may vote.
11 Each member of the board so elected shall hold office for a
12term of 3 years and until his or her successor has been duly
13elected and qualified.
14 The board shall canvass the ballots and declare which
15persons have been elected and for what term or terms
16respectively. In case of a tie vote between 2 or more
17candidates, the board shall determine by lot which candidate or
18candidates have been elected and for what term or terms
19respectively. In the event of the failure, resignation, or
20inability to act of any board member, a successor shall be
21elected for the unexpired term at a special election called by
22the board and conducted in the same manner as a regular
23election.
24 The board shall elect annually from its members a president
25and secretary.
26 Board members shall not receive or have any right to

HB1566- 97 -LRB101 06694 RPS 51721 b
1receive any salary from a pension fund for services performed
2as board members.
3(Source: P.A. 100-201, eff. 8-18-17.)
4 (40 ILCS 5/4-124) (from Ch. 108 1/2, par. 4-124)
5 Sec. 4-124. To enforce contributions. To assess each
6firefighter the contributions required under Section 4-118.1.
7The contributions deducted from salaries, together with all
8interest accruing thereon, shall be paid promptly placed by the
9treasurer of the municipality as ex officio treasurer of the
10board, to the Treasurer credit of the Fund pension fund,
11subject to the order of the Board board.
12(Source: P.A. 83-1440.)
13 (40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
14 Sec. 4-128. To invest funds. To determine the limitations
15on the amounts of cash to be invested in order to maintain such
16cash balances as may be deemed advisable to meet current
17annuity, benefit, and expense requirements, and to invest the
18remaining available cash in securities, in accordance with the
19prudent person investment rule and the other provisions of this
20Article. Beginning on the consolidation date, the Article 1 and
211A restrictions on the investment of Article 4 Funds no longer
22apply, to the extent that they do not also apply to Article 7
23of this Code. Beginning January 1, 1998, the board shall invest
24funds in accordance with Sections 1-113.1 through 1-113.10 of

HB1566- 98 -LRB101 06694 RPS 51721 b
1this Code.
2(Source: P.A. 90-507, eff. 8-22-97.)
3 (40 ILCS 5/4-130.1 new)
4 Sec. 4-130.1. Termination of participation by a
5participating municipality. If a participating municipality
6terminates participation because it fails to meet the
7requirements of Section 3-103, it shall pay to the Fund the
8amount equal to any net debit balance in its municipality
9account and any account receivable. Its successors, assigns,
10and transferees of its assets shall be obligated to make this
11payment to the extent of the value of assets transferred to
12them. The Fund shall pay an amount equal to any net credit
13balance to the participating municipality, its successors or
14assigns. Any remaining net debit or credit balance not
15collectible or payable shall be transferred to a terminated
16municipality reserve account. The Fund shall pay to each
17firefighter of the participating municipality an amount equal
18to his or her credits in the employee reserves. The employees
19shall have no further rights to any benefits from the Fund,
20except that annuities awarded prior to the date of termination
21shall continue to be paid.
22 (40 ILCS 5/4-130.3 new)
23 Sec. 4-130.3. Authorizations.
24 (a) Each participating municipality shall:

HB1566- 99 -LRB101 06694 RPS 51721 b
1 (1) Deduct all normal and additional contributions
2 from each payment of earnings payable to each participating
3 employee who is entitled to any earnings from the
4 municipality, and remit all normal and additional
5 contributions immediately to the Board; and
6 (2) Pay to the Board contributions required by this
7 Article.
8 (b) Each participating employee shall, by virtue of the
9payment of contributions to this Fund, receive a vested
10interest in the annuities and benefits provided in this Article
11and in consideration of such vested interest shall be deemed to
12have agreed and authorized the deduction from earnings of all
13contributions payable to this Fund in accordance with this
14Article.
15 (c) Payment of earnings less the amounts of contributions
16provided in this Article shall be a full and complete discharge
17of all claims for payment for services rendered by any employee
18during the period covered by any such payment.
19 (40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
20 Sec. 4-134. Report for tax levy.
21 (a) The Board board shall report to the governing body of
22each participating city council or board of trustees of the
23municipality on the condition of the Fund pension fund at the
24end of its most recently completed fiscal year. The report
25shall be made prior to the council or board meeting held for

HB1566- 100 -LRB101 06694 RPS 51721 b
1appropriating and levying taxes for the year for which the
2report is made.
3 The pension board in the report shall certify and provide
4the following information to the city council or board of
5trustees of the municipality:
6 (1) the total assets of the fund and the their current
7 market value of those assets;
8 (2) the estimated receipts during the next succeeding
9 fiscal year from deductions from the salaries or wages of
10 firefighters, and from all other sources;
11 (3) the estimated amount necessary during the fiscal
12 year to meet the annual actuarial requirements of the
13 pension fund as provided in Sections 4-118 and 4-120;
14 (4) the total net income received from investment of
15 assets along with the assumed investment return and actual
16 investment return received by the Fund fund during its most
17 recently completed fiscal year compared to the total net
18 income, assumed investment return, and actual investment
19 return received during the preceding fiscal year;
20 (5) the increase in employer pension contributions
21 that results from the implementation of the provisions of
22 Public Act 93-689 this amendatory Act of the 93rd General
23 Assembly;
24 (6) the total number of active employees who are
25 financially contributing to the fund;
26 (7) the total amount that was disbursed in benefits

HB1566- 101 -LRB101 06694 RPS 51721 b
1 during the fiscal year, including the number of and total
2 amount disbursed to (i) annuitants in receipt of a regular
3 retirement pension, (ii) recipients being paid a
4 disability pension, and (iii) survivors and children in
5 receipt of benefits;
6 (8) the funded ratio of the Fund fund; and
7 (9) the unfunded liability carried by the Fund fund,
8 along with an actuarial explanation of the unfunded
9 liability. ; and
10 (10) the investment policy of the pension board under
11 the statutory investment restrictions imposed on the fund.
12 Before the Board pension board makes its report, the Fund
13municipality shall have the assets of the Fund fund and their
14current market value verified by an independent certified
15public accountant of its choice.
16 (b) A participating The municipality is authorized to
17publish the report submitted under this Section. This
18publication may be made, without limitation, by publication in
19a local newspaper of general circulation in the municipality or
20by publication on the municipality's Internet website. If the
21municipality publishes the report, then that publication must
22include all of the information relating to that municipality
23submitted by the Board pension board under subsection (a).
24(Source: P.A. 95-950, eff. 8-29-08.)
25 (40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)

HB1566- 102 -LRB101 06694 RPS 51721 b
1 Sec. 7-175. Board elections.
2 (a) During the period beginning on August 1 and ending on
3September 15 of each year the board shall accept nominations of
4candidates for election to the trusteeships for terms beginning
5the next January 1, new trusteeships or vacancies to be filled
6by election.
7 (b) All nominations shall be by petition. Three petitions
8for an executive trustee shall be signed by governing bodies of
9contributing participating municipalities or
10instrumentalities.
11 A petition for an employee trustee shall be signed by at
12least 350 participating employees who were participants during
13July of the current year and who, if their employment status
14remained unchanged, would be eligible to vote for such
15candidate at the following election.
16 A petition for an annuitant trustee shall be signed by at
17least 100 persons who were annuitants of the Fund during July
18of the current year and who, if their annuitant status remains
19unchanged, would be eligible to vote for the candidate at the
20following election.
21 (c) A separate ballot shall be used for each class of
22trustee and the names of all candidates properly nominated in
23petitions received by the board shall be placed in alphabetical
24order upon the proper ballot. Where two employee trustees are
25elected to a full term in the same year, there shall be one
26election for the two trusteeships and the two candidates

HB1566- 103 -LRB101 06694 RPS 51721 b
1getting the highest number of votes shall be elected.
2 (d) At any election, each contributing participating
3municipality and participating instrumentality and each
4contributing participating employee employed by such
5participating municipality or participating instrumentality
6during September of any year, shall be entitled to vote as
7follows:
8 1. The governing body of each such participating
9 municipality and participating instrumentality shall have
10 one vote at any election in which an executive trustee is
11 to be elected, and may cast such vote for any candidate on
12 the executive trustee ballot.
13 2. Each participating employee shall have one vote at
14 any election in which an employee trustee is to be elected,
15 and may cast such vote for any candidate on the employee
16 trustee ballot.
17 3. Each annuitant of the Fund shall have one vote at
18 any election in which an annuitant trustee is to be
19 elected, and may cast that vote for any candidate on the
20 annuitant trustee ballot.
21 4. A vote may be cast for a person not on the ballot by
22 writing in his or her name.
23 (e) The election shall be by ballot pursuant to the rules
24and regulations established by the board and shall be completed
25by December 31 of the year. The results shall be entered in the
26minutes of the meeting of the board following the tally of

HB1566- 104 -LRB101 06694 RPS 51721 b
1votes.
2 (f) In case of a tie vote, the candidate employed by or
3retired from the participating municipality or participating
4instrumentality having the greatest number of participating
5employees at the time shall be elected.
6 (g) Notwithstanding any other provision of this Article, if
7only one candidate is properly nominated in petitions received
8by the Board, that candidate shall be deemed the winner. In the
9case of 2 employee trustees elected to a full term in the same
10year, if only 2 candidates are properly nominated in petitions
11received by the Board, those 2 candidates shall both be deemed
12winners. If a candidate is deemed a winner under this
13paragraph, no election under this Section or Section 7-175.1
14shall be required.
15 (h) For the purposes of this Section, "annuitant" includes
16a person who receives an annuity pursuant to Article 3 or 4.
17 For the purposes of this Section, "contributing
18participating municipality" includes a municipality that
19participates in Article 3 or 4.
20 For the purposes of this Section, "participating employee"
21includes a police officer under Article 3 or a firefighter
22under Article 4.
23(Source: P.A. 98-932, eff. 8-15-14.)
24 (40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)
25 Sec. 7-175.1. Election of employee and annuitant trustees.

HB1566- 105 -LRB101 06694 RPS 51721 b
1 (a) The board shall prepare and send ballots and ballot
2envelopes to the employees, including police officers under
3Article 3 and firefighters under Article 4, and annuitants
4eligible to vote as of September of that year. The ballots
5shall contain the names of all candidates in alphabetical order
6and an appropriate place where a name may be written in on the
7ballot. The ballot envelope shall have on the outside a form of
8certificate stating that the person voting the ballot is a
9participating employee or annuitant entitled to vote.
10 (b) Employees and annuitants, upon receipt of the ballot,
11shall vote the ballot and place it in the ballot envelope, seal
12the envelope, execute the certificate thereon and return the
13ballot to the Fund.
14 (c) The board shall set a final date for ballot return, and
15ballots received prior to that date in a ballot envelope with a
16properly executed certificate and properly voted, shall be
17valid ballots.
18 (d) The board shall set a day for counting the ballots and
19name judges and clerks of election to conduct the count of
20ballots, and shall make any rules and regulations necessary for
21the conduct of the count.
22 (e) No election under this Section shall be required if a
23candidate is deemed the winner under subsection (g) of Section
247-175.
25 (f) Nothing in this Section shall preclude the Board from
26adopting rules that provide for Internet balloting or phone

HB1566- 106 -LRB101 06694 RPS 51721 b
1balloting in addition to election by mail under this Section.
2An Internet or phone ballot cast in accordance with rules
3adopted under this subsection shall be a valid ballot.
4(Source: P.A. 100-935, eff. 1-1-19.)
5 Section 90. The State Mandates Act is amended by adding
6Section 8.43 as follows:
7 (30 ILCS 805/8.43 new)
8 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
9of this Act, no reimbursement by the State is required for the
10implementation of any mandate created by this amendatory Act of
11the 101st General Assembly.
12 Section 99. Effective date. This Act takes effect upon
13becoming law, except that Sections 5 and 15 take effect January
141, 2021.

HB1566- 107 -LRB101 06694 RPS 51721 b
1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 200/18-185
4 40 ILCS 5/3-101from Ch. 108 1/2, par. 3-101
5 40 ILCS 5/3-101.1 new
6 40 ILCS 5/3-101.2 new
7 40 ILCS 5/3-106from Ch. 108 1/2, par. 3-106
8 40 ILCS 5/4-101from Ch. 108 1/2, par. 4-101
9 40 ILCS 5/4-101.1 new
10 40 ILCS 5/4-101.2 new
11 40 ILCS 5/4-106from Ch. 108 1/2, par. 4-106
12 40 ILCS 5/7-109from Ch. 108 1/2, par. 7-109
13 40 ILCS 5/7-199.5 new
14 40 ILCS 5/7-199.6 new
15 40 ILCS 5/3-102.1 new
16 40 ILCS 5/3-103from Ch. 108 1/2, par. 3-103
17 40 ILCS 5/3-103.9 new
18 40 ILCS 5/3-105from Ch. 108 1/2, par. 3-105
19 40 ILCS 5/3-108.2
20 40 ILCS 5/3-108.3
21 40 ILCS 5/3-110from Ch. 108 1/2, par. 3-110
22 40 ILCS 5/3-110.7
23 40 ILCS 5/3-125from Ch. 108 1/2, par. 3-125
24 40 ILCS 5/3-125.1from Ch. 108 1/2, par. 3-125.1
25 40 ILCS 5/3-128from Ch. 108 1/2, par. 3-128

HB1566- 108 -LRB101 06694 RPS 51721 b