Bill Text: IL HB1570 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Illinois Pension Code. Merges all Article 4 firefighters' pension funds into a single Downstate Firefighters Pension Fund 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 staff, investments, transfer of assets and liabilities, acquisition of property, establishment of municipality accounts, and adopting rules and procedures. Authorizes the Transition Board to enter into contracts and to obligate and expend the assets of the Fund. Creates a new Board of Trustees for the Fund, and provides for administration of the Fund by the Transition Board until the new Board assumes its duties on January 1, 2022. Provides for investment of the Fund's assets by a custodian chosen by the Board of Trustees. Makes conforming and other changes. 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 the Downstate Firefighters Pension Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, except that certain changes to the Illinois Pension Code and PTELL 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 [HB1570 Detail]

Download: Illinois-2019-HB1570-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1570

Introduced , by Rep. Jim Durkin

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Pension Code. Merges all Article 4 firefighters' pension funds into a single Downstate Firefighters Pension Fund 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 staff, investments, transfer of assets and liabilities, acquisition of property, establishment of municipality accounts, and adopting rules and procedures. Authorizes the Transition Board to enter into contracts and to obligate and expend the assets of the Fund. Creates a new Board of Trustees for the Fund, and provides for administration of the Fund by the Transition Board until the new Board assumes its duties on January 1, 2022. Provides for investment of the Fund's assets by a custodian chosen by the Board of Trustees. Makes conforming and other changes. 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 the Downstate Firefighters Pension Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, except that certain changes to the Illinois Pension Code and PTELL of the Property Tax Code take effect January 1, 2021.
LRB101 06712 RPS 51739 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB1570LRB101 06712 RPS 51739 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

HB1570- 2 -LRB101 06712 RPS 51739 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

HB1570- 3 -LRB101 06712 RPS 51739 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 for contributions to the Downstate
23Firefighters Pension Fund under Article 4 of the Illinois
24Pension Code.
25 "Aggregate extension" for the taxing districts to which
26this Law did not apply before the 1995 levy year (except taxing

HB1570- 5 -LRB101 06712 RPS 51739 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

HB1570- 6 -LRB101 06712 RPS 51739 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

HB1570- 7 -LRB101 06712 RPS 51739 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 for
15contributions to the Downstate Firefighters Pension Fund under
16Article 4 of the Illinois Pension Code.
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

HB1570- 8 -LRB101 06712 RPS 51739 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

HB1570- 9 -LRB101 06712 RPS 51739 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
26for contributions to the Downstate Firefighters Pension Fund

HB1570- 10 -LRB101 06712 RPS 51739 b
1under Article 4 of the Illinois Pension Code.
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

HB1570- 11 -LRB101 06712 RPS 51739 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

HB1570- 12 -LRB101 06712 RPS 51739 b
1the amount certified under item (5) of Section 4-134 of the
2Illinois Pension Code; and (m) made for contributions to the
3Downstate Firefighters Pension Fund under Article 4 of the
4Illinois Pension Code.
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

HB1570- 13 -LRB101 06712 RPS 51739 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.

HB1570- 14 -LRB101 06712 RPS 51739 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

HB1570- 15 -LRB101 06712 RPS 51739 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

HB1570- 16 -LRB101 06712 RPS 51739 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

HB1570- 17 -LRB101 06712 RPS 51739 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

HB1570- 18 -LRB101 06712 RPS 51739 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.

HB1570- 19 -LRB101 06712 RPS 51739 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 Section 4-101 and by adding Sections 4-101.1, 4-101.2,
5and 7-199.5 as follows:
6 (40 ILCS 5/4-101) (from Ch. 108 1/2, par. 4-101)
7 Sec. 4-101. Creation of Fund 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 firefighters'
19pension funds then existing under this Article are merged and
20consolidated into a single pension fund, to be known as the
21Downstate Firefighters Pension Fund, which shall be
22established and administered as prescribed in this Article.
23 (c) Beginning January 1, 2021, each municipality, as
24defined in Section 4-103, shall participate in the Downstate

HB1570- 20 -LRB101 06712 RPS 51739 b
1Firefighters Pension Fund for the benefit of its firefighters
2and of their surviving spouses, children, and certain other
3dependents.
4 (d) It is the purpose of this consolidation to provide the
5advantages of (i) centralized custody and investment of pension
6fund assets, (ii) consistent interpretation and application of
7this Article in accordance with a single set of rules and
8procedures adopted by the consolidated pension fund, and (iii)
9securing the future funding of pension benefits through an
10independent determination of each municipality's required
11annual contribution rate.
12(Source: P.A. 97-99, eff. 1-1-12.)
13 (40 ILCS 5/4-101.1 new)
14 Sec. 4-101.1. Transition Board.
15 (a) There is hereby created a Downstate Firefighters
16Pension Fund Transition Board, which may be referred to as the
17"Transition Board". The Transition Board shall consist of 11
18members as follows:
19 (1) The Director of Insurance, or his or her designee.
20 (2) Two persons with experience in managing or
21 administering an Illinois public employee pension fund or
22 retirement system, appointed by the Governor.
23 (3) One person with experience in providing actuarial
24 services to an Illinois public employee pension fund or
25 retirement system, appointed by the Governor.

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

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1 (b) The Transition Board shall be responsible for planning,
2overseeing, and administering the consolidation and merger of
3all existing Article 4 pension funds into a single Downstate
4Firefighters Pension Fund.
5 Members of the Transition Board shall act at all times in a
6manner appropriate for fiduciaries of the Fund and fiduciaries
7of the pension funds being consolidated.
8 The Transition Board's powers and duties include, but are
9not limited to, the following:
10 (1) Providing for the establishment of offices,
11 infrastructure, and personnel necessary for the operation
12 of the Downstate Firefighters Pension Fund.
13 (2) Providing for the preservation and consolidation
14 of membership, beneficiary, financial, and other records
15 relating to the Article 4 pension funds to be merged.
16 (3) Obtaining all necessary Internal Revenue Service
17 and any other necessary approval or review.
18 (4) Providing for the final auditing of existing
19 Article 4 pension funds, including a final accounting of
20 their respective assets and liabilities, paid for by the
21 applicable pension fund.
22 (5) Providing for the custody and transfer of the
23 assets and liabilities of the existing Article 4 pension
24 funds to the Downstate Firefighters Pension Fund, on a
25 schedule to be determined by the Transition Board.
26 (6) Providing for the long-term investment of the

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1 assets of the Downstate Firefighters Pension Fund that are
2 not required for the short-term payment of benefits.
3 (7) Providing an appropriate system of accounting for
4 the assets and liabilities attributable to the existing
5 Article 4 pension funds and establishing separate reserves
6 and accounts for each municipality participating in the
7 Downstate Firefighters Pension Fund in accordance with
8 this Article. In so doing, the Transition Board shall be
9 guided by the methods and experience of the Illinois
10 Municipal Retirement Fund.
11 (8) Providing an appropriate system of determining,
12 administering, receiving, and enforcing the required
13 municipal contributions to the Fund. In so doing, the
14 Transition Board shall be guided by the methods and
15 experience of the Illinois Municipal Retirement Fund. The
16 municipal contribution rate shall be determined separately
17 for each municipality on an annual basis in accordance with
18 the requirements of this Article, based on the
19 municipality's separate reserves and accounts within the
20 Fund. The Transition Board shall endeavor to determine the
21 required municipal contributions to the Fund and to notify
22 and provide reasonable guidance to municipalities in a
23 manner that ensures uninterrupted contributions during the
24 transition period.
25 (9) Ensuring the uninterrupted payment and
26 administration of benefits.

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1 (10) Adopting any rules or procedures necessary for the
2 efficient consolidation of the existing Article 4 pension
3 funds and the efficient operation and administration of the
4 Downstate Firefighters Pension Fund.
5 (11) Considering the consequences of the consolidation
6 on any Qualified Illinois Domestic Relations Orders filed
7 with the pension funds being consolidated and giving
8 appropriate notice and advice to persons who may be
9 affected by those Qualified Illinois Domestic Relations
10 Orders concerning the possible effects of consolidation.
11 (12) Administering the Downstate Firefighters Pension
12 Fund and exercising and performing all of the powers and
13 duties of its Board of Trustees from the time of the Fund's
14 inception until the Board of Trustees under subsection (d)
15 of Section 4-121 has been elected and assumes its duties.
16 (13) Making recommendations to the Governor and the
17 General Assembly with respect to legislation necessary or
18 useful for the implementation of this consolidation or for
19 the successful operation of the Downstate Firefighters
20 Pension Fund.
21 (c) The Public Pension Division of the Department of
22Insurance shall provide all reasonably necessary and available
23temporary office space, technical and clerical support, and
24monetary or other assistance at the request of the Transition
25Board.
26 For the purpose of implementing the consolidation, the

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1Transition Board may direct the Public Pension Division to
2accelerate, expand, or enhance its examination under Section
31A-104 of all or specific Article 4 pension funds, or to
4conduct a particular study or investigation thereof. The
5expenses of such examinations and investigations, to the extent
6not paid by the Division, shall be charged to the applicable
7pension fund.
8 (d) The Illinois Municipal Retirement Fund is authorized to
9provide any reasonable managerial, professional, clerical, and
10other assistance to the Transition Board that is consistent
11with its fiduciary and other obligations.
12 The Transition Board is authorized to enter into reasonable
13contracts or other agreements with the Illinois Municipal
14Retirement Fund, without public bidding or procurement
15procedures but not exceeding 3 years in duration, to provide
16administrative, investment, professional, technical, or other
17services or facilities for the Downstate Firefighters Pension
18Fund.
19 (e) In preparation for the inception of the Downstate
20Firefighters Pension Fund on January 1, 2021 and during the
21period of its administration of that Fund, the Transition Board
22is authorized to expend or obligate the assets of the Fund for
23any of the reasonable expenses of the Fund, including the
24payment of benefits and reasonable administrative expenses. As
25used in this Section, "reasonable administrative expenses"
26includes, but is not limited to, the cost of hiring personnel

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1and obtaining professional services, the cost of leases or
2purchases of property or services for the Fund, the cost of
3insurance, and the cost of indemnifying members of the
4Transition Board and its employees, advisors, and agents.
5 (f) In preparation for the inception of the Downstate
6Firefighters Pension Fund on January 1, 2021, the Transition
7Board is specifically authorized to retain for the Fund, during
8the period before its inception, an executive director and an
9actuary with the powers and duties described in Sections
104-130.4 and 4-130.5.
11 (g) Members of the Transition Board, other than State
12officials and employees, may be compensated for their service,
13and all members may be reimbursed for their reasonable expenses
14out of any moneys available for that purpose.
15 (h) Sixty days after the Board of Trustees under subsection
16(d) of Section 4-121 assumes its duties, the Transition Board
17is abolished.
18 (40 ILCS 5/4-101.2 new)
19 Sec. 4-101.2. Consolidation of pension funds.
20 (a) On January 1, 2021, all of the individual firefighters'
21pension funds then established under this Article are merged
22and consolidated into a single pension fund, to be known as the
23Downstate Firefighters Pension Fund, which shall be
24established and administered as prescribed in this Article.
25 In preparation for that consolidation, all pension funds

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1established under this Article, and the municipalities that
2established them, shall cooperate with the Transition Board.
3 (b) The Downstate Firefighters Pension 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 Downstate Firefighters
12Pension 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 Downstate Firefighters Pension Fund, for
16management and investment as assets of the Downstate
17Firefighters Pension Fund, all of their securities and other
18investments not 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

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1fund, and any associated liabilities, are not affected by the
2consolidation and shall continue to be 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 Downstate
15Firefighters Pension Fund.
16 (e) The consolidation of pension funds under this Article
17shall not diminish or impair the benefits of any current or
18former firefighter who participated in one of those pension
19funds, or of any such firefighter's surviving spouse, children,
20or other dependents.
21 The consolidation of pension funds under this Article does
22not entitle any person to a recalculation or combination of any
23benefit or benefits previously granted or to a refund of any
24contribution previously paid.
25 The consolidation of pension funds under this Article is
26not intended to increase the benefits provided under this

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1Article, except insofar as the consolidation of pension funds
2into a single Fund will allow firefighters in active service on
3or after the consolidation date to have their benefit
4calculations (and those of their qualifying survivors) include
5consideration of all of the firefighter's service, salary, and
6credits in the Fund as though arising under that single Fund,
7rather than as arising under more than one participating
8municipality or more than one Article 4 pension fund.
9 (40 ILCS 5/7-199.5 new)
10 Sec. 7-199.5. To assist in the creation and administration
11of the Downstate Firefighters Pension Fund. To assist in the
12creation and administration of the Downstate Firefighters
13Pension Fund under Article 4 of this Code, including assisting
14the Downstate Firefighters Pension Fund Transition Board,
15created under Section 4-101.1 of this Code; and pursuant to any
16contract or other agreement it may enter into with the
17Transition Board or the Board of Trustees of the Downstate
18Firefighters Pension Fund, to provide for the administrative
19staff of one Fund to provide assistance to or consolidate
20particular services or operations with that of the other Fund,
21to the extent consistent with their respective fiduciary and
22other responsibilities.
23 Section 15. The Illinois Pension Code is amended by
24changing Sections 4-103, 4-105, 4-105c, 4-105d, 4-108, 4-118,

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14-118.1, 4-121, 4-124, 4-128, and 4-134 and by adding Sections
24-102.1, 4-104.5, 4-106.5, 4-121.1, 4-121.2, 4-129.5, 4-130.1,
34-130.3, 4-130.4, and 4-130.5 as follows:
4 (40 ILCS 5/4-102.1 new)
5 Sec. 4-102.1. Fund. "Fund" or "pension fund": Until January
61, 2021, a firefighters' pension fund established by a
7municipality under this Article.
8 Beginning January 1, 2021, "Fund" or "pension fund" means
9the Downstate Firefighters Pension Fund created under this
10Article to consolidate all of the individual pension funds
11previously established under this Article; depending on the
12context, the terms may include one or more of those previously
13established pension funds.
14 (40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
15 Sec. 4-103. Municipality; participating municipality;
16governing body.
17 (a) "Municipality": (1) Any city, township, village or
18incorporated town of 5,000 or more but less than 500,000
19inhabitants, and any fire protection district having any
20full-time paid firefighters, and (2) any city, village,
21incorporated town or township of less than 5,000 inhabitants
22having a full-time paid fire department which adopts the
23provisions of this Article article pursuant to the provisions
24of Section 4-141.

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1 (b) The term "participating municipality" means a
2municipality, as defined in subsection (a), that both is
3required (or has elected) to and does in fact participate in
4the Downstate Firefighters Pension Fund under this Article.
5 (c) The term "governing body", "city council", or "board of
6trustees" includes the board of trustees of a fire protection
7district and the board of town trustees or other persons
8empowered to draft the tentative budget and appropriation
9ordinance and the electors of such a township acting at the
10annual or special meeting of town electors.
11(Source: P.A. 83-1440.)
12 (40 ILCS 5/4-104.5 new)
13 Sec. 4-104.5. Prescribed rate of interest. "Prescribed
14rate of interest": The rate of interest to be used for
15calculation of the rates of municipality contributions and
16amounts of annuities and benefits as determined by the Board on
17the basis of the probable effective rate of interest on a long
18term basis.
19 (40 ILCS 5/4-105) (from Ch. 108 1/2, par. 4-105)
20 Sec. 4-105. Board. "Board": Until January 1, 2021, the The
21"Board of Trustees of the Firefighters' Pension Fund" of a
22municipality as established in subsection (a) of Section 4-121.
23 Beginning January 1, 2021, the Board of Trustees of the
24Downstate Firefighters Pension Fund created under this Article

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1to consolidate all of the individual pension funds previously
2established under this Article, as established in subsection
3(d) of Section 4-121, or until that board is established and
4has assumed its duties, the Transition Board created under
5Section 4-101.1; depending on the context, the term may include
6the former board of trustees of one or more of those previously
7established pension funds.
8(Source: P.A. 83-1440.)
9 (40 ILCS 5/4-105c)
10 Sec. 4-105c. Participant. "Participant": A firefighter or
11deferred pensioner of the Fund a pension fund, or a beneficiary
12of the Fund pension fund.
13(Source: P.A. 90-507, eff. 8-22-97.)
14 (40 ILCS 5/4-105d)
15 Sec. 4-105d. Beneficiary. "Beneficiary": A person
16receiving benefits from the Fund a pension fund, including, but
17not limited to, retired pensioners, disabled pensioners, their
18surviving spouses, minor children, disabled children, and
19dependent parents.
20(Source: P.A. 90-507, eff. 8-22-97.)
21 (40 ILCS 5/4-106.5 new)
22 Sec. 4-106.5. Authorized agent of a participating
23municipality.

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1 (a) Each participating municipality shall appoint an
2authorized agent who shall have the powers and duties set forth
3in this Section. In the absence of such an appointment, the
4duties of the authorized agent shall devolve upon the clerk or
5secretary of the municipality.
6 (b) The authorized agent of the municipality shall have the
7following powers and duties:
8 (1) To certify to the Fund whether or not a given
9 person is authorized to participate in the Fund.
10 (2) To certify to the Fund when a participating
11 employee is on a leave of absence authorized by the
12 municipality.
13 (3) To request the proper officer to cause employee
14 contributions to be withheld from salary and promptly
15 transmitted to the Fund.
16 (4) To request the proper officer to cause municipality
17 contributions to be promptly forwarded to the Fund.
18 (5) To forward promptly to all participating employees
19 any communications for such employees from the Fund or the
20 municipality.
21 (6) To forward promptly to the Board of the Fund all
22 applications, claims reports, and other communications
23 delivered to the agent by participating employees.
24 (7) To perform all duties related to the administration
25 of the Fund as requested by the Fund or the governing body
26 of the municipality.

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

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1funds under this Article into the Downstate Firefighters
2Pension Fund on January 1, 2021, creditable service under any
3such pension fund shall be deemed to be creditable service in
4the Downstate Firefighters Pension Fund, subject to the
5following provisions:
6 (1) The consolidation of firefighters' pension funds
7 into the Downstate Firefighters Pension Fund shall not
8 result in the duplication of any service credit based on
9 the same period of service in this or any other pension
10 fund or retirement system subject to this Code.
11 (2) If this Section or any other provision of this
12 Article imposes a limit on the amount of creditable service
13 that may be established for a particular activity or
14 purpose, and prior to consolidation a firefighter has
15 established periods of creditable service for that
16 activity or purpose in more than one former firefighters'
17 pension fund under this Article, which periods are within
18 that limitation for each such fund but together exceed that
19 limitation, then upon consolidation all such credit
20 previously established by the firefighter shall be
21 preserved under the Fund, but no additional creditable
22 service for that activity or purpose may be established by
23 that firefighter in the Fund.
24 (3) The consolidation of firefighters' pension funds
25 into the Downstate Firefighters Pension Fund shall not
26 entitle any person or pension fund to a refund of any

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

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

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

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

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1 1991 (the effective date of Public Act 87-794) this
2 amendatory Act of 1991, and the corresponding
3 contributions are paid for the number of years of service
4 granted, based upon the salary and contribution rate in
5 effect for the firefighter at the date of entry into the
6 pension fund, as determined by the Board.
7 (6) Service before becoming a participant by a
8 firefighter initially excluded from participation by
9 reason of age who becomes a participant under the amendment
10 to Section 4-107 made by Public Act 87-1265 this amendatory
11 Act of 1993 and pays the required contributions for such
12 service.
13 (7) Up to 3 years of time during which the firefighter
14 receives a disability pension under Section 4-110,
15 4-110.1, or 4-111, provided that (i) the firefighter
16 returns to active service after the disability for a period
17 at least equal to the period for which credit is to be
18 established and (ii) the firefighter makes contributions
19 to the Fund fund based on the rates specified in Section
20 4-118.1 and the salary upon which the disability pension is
21 based. These contributions may be paid at any time prior to
22 the commencement of a retirement pension. The firefighter
23 may, but need not, elect to have the contributions deducted
24 from the disability pension or to pay them in installments
25 on a schedule approved by the board. If not deducted from
26 the disability pension, the contributions shall include

HB1570- 41 -LRB101 06712 RPS 51739 b
1 interest at the rate of 6% per year, compounded annually,
2 from the date for which service credit is being established
3 to the date of payment. If contributions are paid under
4 this subdivision (c)(7) in excess of those needed to
5 establish the credit, the excess shall be refunded. This
6 subdivision (c)(7) applies to persons receiving a
7 disability pension under Section 4-110, 4-110.1, or 4-111
8 on the effective date of this amendatory Act of the 91st
9 General Assembly, as well as persons who begin to receive
10 such a disability pension after that date.
11 (8) Up to 6 years of service as a police officer and
12 participant in an Article 3 police pension fund
13 administered by the unit of local government that employs
14 the firefighter under this Article, provided that the
15 service has been transferred to, and the required payment
16 received by, the Article 4 fund in accordance with Section
17 3-110.12 of this Code.
18(Source: P.A. 100-544, eff. 11-8-17.)
19 (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
20 Sec. 4-118. Financing; tax.
21 (a) The governing body city council or the board of
22trustees of a participating the municipality shall annually
23levy a tax upon all the taxable property of the municipality at
24the rate on the dollar which will produce an amount which, when
25added to the deductions from the salaries or wages of

HB1570- 42 -LRB101 06712 RPS 51739 b
1firefighters and revenues available from other sources, will
2equal a sum sufficient to meet the annual actuarial
3requirements of the account of the participating municipality
4pension fund, as determined by an enrolled actuary employed by
5the Fund Illinois Department of Insurance or by an enrolled
6actuary retained by the pension fund or municipality. For the
7purposes of this Section, the annual actuarial requirements of
8the account of the participating municipality pension fund are
9equal to (1) the normal cost of benefits attributable to the
10participating municipality and its firefighters, as determined
11by an enrolled actuary employed by the Fund of the pension
12fund, or 17.5% of the salaries and wages to be paid to
13firefighters for the year involved, whichever is greater, plus
14(2) an annual amount sufficient to bring the total assets of
15the account of the participating municipality pension fund up
16to 90% of the total actuarial liabilities of the account of the
17participating municipality pension fund by the end of municipal
18fiscal year 2040, as annually updated and determined by an
19enrolled actuary employed by the Fund Illinois Department of
20Insurance or by an enrolled actuary retained by the pension
21fund or the municipality. In making these determinations, the
22required minimum employer contribution shall be calculated
23each year as a level percentage of payroll over the years
24remaining up to and including fiscal year 2040 and shall be
25determined under the projected unit credit actuarial cost
26method. The amount to be applied towards the amortization of

HB1570- 43 -LRB101 06712 RPS 51739 b
1the unfunded accrued liability in any year shall not be less
2than the annual amount required to amortize the unfunded
3accrued liability, including interest, as a level percentage of
4payroll over the number of years remaining in the 40 year
5amortization period.
6 (a-5) For purposes of determining the required employer
7contribution to the Fund a pension fund, the value of the
8pension fund's assets of the account of the participating
9municipality shall be equal to the actuarial value of the
10pension fund's assets of the account of the participating
11municipality, which shall be calculated as follows:
12 (1) (Blank). On March 30, 2011, the actuarial value of
13 a pension fund's assets shall be equal to the market value
14 of the assets as of that date.
15 (2) In determining the actuarial value of the pension
16 fund's assets of the account of the participating
17 municipality for fiscal years after March 30, 2011, any
18 actuarial gains or losses from investment return incurred
19 in a fiscal year shall be recognized in equal annual
20 amounts over the 5-year period following that fiscal year.
21 (b) The tax shall be levied and collected in the same
22manner as the general taxes of the municipality, and shall be
23in addition to all other taxes now or hereafter authorized to
24be levied upon all property within the municipality, and in
25addition to the amount authorized to be levied for general
26purposes, under Section 8-3-1 of the Illinois Municipal Code or

HB1570- 44 -LRB101 06712 RPS 51739 b
1under Section 14 of the Fire Protection District Act. The tax
2shall be forwarded directly to the treasurer of the Fund board
3within 30 business days of receipt by the county (or, in the
4case of amounts added to the tax levy under subsection (f),
5used by the municipality to pay the employer contributions
6required under subsection (b-1) of Section 15-155 of this
7Code).
8 (b-5) If a participating municipality fails to transmit to
9the Fund fund contributions required of it under this Article
10for more than 90 days after the payment of those contributions
11is due, the Fund fund may, after giving notice to the
12municipality, certify to the State Comptroller the amounts of
13the delinquent payments in accordance with any applicable rules
14of the Comptroller, and the Comptroller must, beginning in
15fiscal year 2016, deduct and remit to the Fund, for credit to
16the account of the participating municipality, fund the
17certified amounts or a portion of those amounts from the
18following proportions of payments of State funds to the
19municipality:
20 (1) in fiscal year 2016, one-third of the total amount
21 of any payments of State funds to the municipality;
22 (2) in fiscal year 2017, two-thirds of the total amount
23 of any payments of State funds to the municipality; and
24 (3) in fiscal year 2018 and each fiscal year
25 thereafter, the total amount of any payments of State funds
26 to the municipality.

HB1570- 45 -LRB101 06712 RPS 51739 b
1 The State Comptroller may not deduct from any payments of
2State funds to the municipality more than the amount of
3delinquent payments certified to the State Comptroller by the
4Fund fund.
5 (c) The Board board shall make available to the membership
6and the general public for inspection and copying at reasonable
7times the most recent Actuarial Valuation Balance Sheet and Tax
8Levy Requirement issued to the Fund fund by the Department of
9Insurance.
10 (d) (Blank). The firefighters' pension fund shall consist
11of the following moneys which shall be set apart by the
12treasurer of the municipality: (1) all moneys derived from the
13taxes levied hereunder; (2) contributions by firefighters as
14provided under Section 4-118.1; (3) all rewards in money, fees,
15gifts, and emoluments that may be paid or given for or on
16account of extraordinary service by the fire department or any
17member thereof, except when allowed to be retained by
18competitive awards; and (4) any money, real estate or personal
19property received by the board.
20 (e) (Blank). For the purposes of this Section, "enrolled
21actuary" means an actuary: (1) who is a member of the Society
22of Actuaries or the American Academy of Actuaries; and (2) who
23is enrolled under Subtitle C of Title III of the Employee
24Retirement Income Security Act of 1974, or who has been engaged
25in providing actuarial services to one or more public
26retirement systems for a period of at least 3 years as of July

HB1570- 46 -LRB101 06712 RPS 51739 b
11, 1983.
2 (f) The corporate authorities of a municipality that
3employs a person who is described in subdivision (d) of Section
44-106 may add to the tax levy otherwise provided for in this
5Section an amount equal to the projected cost of the employer
6contributions required to be paid by the municipality to the
7State Universities Retirement System under subsection (b-1) of
8Section 15-155 of this Code.
9 (g) (Blank). The Commission on Government Forecasting and
10Accountability shall conduct a study of all funds established
11under this Article and shall report its findings to the General
12Assembly on or before January 1, 2013. To the fullest extent
13possible, the study shall include, but not be limited to, the
14following:
15 (1) fund balances;
16 (2) historical employer contribution rates for each
17 fund;
18 (3) the actuarial formulas used as a basis for employer
19 contributions, including the actual assumed rate of return
20 for each year, for each fund;
21 (4) available contribution funding sources;
22 (5) the impact of any revenue limitations caused by
23 PTELL and employer home rule or non-home rule status; and
24 (6) existing statutory funding compliance procedures
25 and funding enforcement mechanisms for all municipal
26 pension funds.

HB1570- 47 -LRB101 06712 RPS 51739 b
1(Source: P.A. 99-8, eff. 7-9-15.)
2 (40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
3 Sec. 4-118.1. Contributions by firefighters.
4 (a) Beginning January 1, 1976 and until August 6, 1999 (the
5effective date of Public Act 91-466) this amendatory Act of the
691st General Assembly, each firefighter shall contribute to the
7pension fund 6 3/4% of salary towards the cost of his or her
8pension. Beginning August 6, 1999 on the effective date of this
9amendatory Act of the 91st General Assembly, each firefighter
10shall contribute to the pension fund 6.955% of salary towards
11the cost of his or her pension.
12 (b) In addition, beginning January 1, 1976, each
13firefighter shall contribute 1% of salary toward the cost of
14the increase in pension provided in Section 4-109.1; beginning
15January 1, 1987, such contribution shall be 1.5% of salary;
16beginning July 1, 2004, the contribution shall be 2.5% of
17salary.
18 (c) Beginning on July 1, 2004 (the effective date of Public
19Act 93-689) this amendatory Act of the 93rd General Assembly,
20each firefighter who elects to receive a pension under Section
214-109.3 and who has participated in at least one other pension
22fund under this Article for a period of at least one year shall
23contribute an additional 1.0% of salary toward the cost of the
24increase in pensions provided in Section 4-109.3; except that
25beginning January 1, 2021, no additional contributions shall be

HB1570- 48 -LRB101 06712 RPS 51739 b
1paid under this subsection (c).
2 In the event that a firefighter does not elect to receive a
3retirement pension provided under Section 4-109.3 from one or
4more of the pension funds under this Article in which the
5firefighter has credit, he or she shall, upon withdrawal from
6the last pension fund as defined in Section 4-109.3, be
7entitled to receive, from each such fund to which he or she has
8paid additional contributions under this subsection (c) and
9from which he or she does not receive a refund under Section
104-116, a refund of those contributions without interest.
11Beginning January 1, 2021, however, such refunds shall be
12payable from the Downstate Firefighters Pension Fund and
13chargeable to the appropriate municipal accounts and reserves.
14 A refund of total contributions to a particular firefighter
15pension fund under Section 4-116 shall include any refund of
16additional contributions paid to that fund under this
17subsection (c), but a firefighter who accepts a refund from a
18pension fund under Section 4-116 is thereafter ineligible to
19receive a pension provided under Section 4-109.3 from that
20fund. A firefighter who meets the eligibility requirements of
21Section 4-109.3 may receive a pension under Section 4-109.3
22from any pension fund from which the firefighter has not
23received a refund under Section 4-116 or under this subsection
24(c); except that beginning January 1, 2021 (the consolidation
25date), such pensions shall be payable from the Downstate
26Firefighters Pension Fund as provided in Section 4-109.3 and

HB1570- 49 -LRB101 06712 RPS 51739 b
1chargeable to the appropriate municipal accounts and reserves.
2 (d) "Salary" means the annual salary, including longevity,
3attached to the firefighter's rank, as established by the
4municipality appropriation ordinance, including any
5compensation for overtime which is included in the salary so
6established, but excluding any "overtime pay", "holiday pay",
7"bonus pay", "merit pay", or any other cash benefit not
8included in the salary so established.
9 (e) The contributions shall be deducted and withheld from
10the salary of firefighters.
11(Source: P.A. 93-689, eff. 7-1-04.)
12 (40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)
13 Sec. 4-121. Board created.
14 (a) This subsection (a) applies until January 1, 2021.
15There is created in each municipality or fire protection
16district a board of trustees to be known as the "Board of
17Trustees of the Firefighters' Pension Fund". The membership of
18the board for each municipality shall be, respectively, as
19follows: in cities, the treasurer, clerk, marshal, or chief
20officer of the fire department, and the comptroller if there is
21one, or if not, the mayor; in each township, village or
22incorporated town, the president of the municipality's board of
23trustees, the village or town clerk, village or town attorney,
24village or town treasurer, and the chief officer of the fire
25department; and in each fire protection district, the president

HB1570- 50 -LRB101 06712 RPS 51739 b
1and other 2 members of its board of trustees and the marshal or
2chief of its fire department or service, as the case may be;
3and in all the municipalities above designated 3 additional
4persons chosen from their active firefighters and one other
5person who has retired under the Firemen's Pension Fund Act of
61919, or this Article. The Notwithstanding any provision of
7this Section to the contrary, the term of office of each member
8of a board established on or before the 3rd Monday in April,
92006 shall terminate on the 3rd Monday in April, 2006, but all
10incumbent members shall continue to exercise all of the powers
11and be subject to all of the duties of a member of the board
12until all the new members of the board take office.
13 Beginning on the 3rd Monday in April, 2006 and until
14January 1, 2021, the board of trustees for each municipality or
15fire protection district shall consist of 5 members. Two
16members of the board shall be appointed by the mayor or
17president of the board of trustees of the municipality or fire
18protection district involved. Two members of the board shall be
19active participants of the pension fund who are elected from
20the active participants of the fund. One member of the board
21shall be a person who is retired under the Firemen's Pension
22Fund Act of 1919 or this Article who is elected from persons
23retired under the Firemen's Pension Fund Act of 1919 or this
24Article.
25 For the purposes of this Section, a firefighter receiving a
26disability pension shall be considered a retired firefighter.

HB1570- 51 -LRB101 06712 RPS 51739 b
1In the event that there are no retired firefighters under the
2Fund or if none is willing to serve on the board, then an
3additional active firefighter shall be elected to the board in
4lieu of the retired firefighter that would otherwise be
5elected.
6 If the regularly constituted fire department of a
7municipality is dissolved and Section 4-106.1 is not
8applicable, the board shall continue to exist and administer
9the Fund so long as there continues to be any annuitant or
10deferred pensioner in the Fund. In such cases, elections shall
11continue to be held as specified in this Section, except that:
12(1) deferred pensioners shall be deemed to be active members
13for the purposes of such elections; (2) any otherwise
14unfillable positions on the board, including ex officio
15positions, shall be filled by election from the remaining
16firefighters and deferred pensioners of the Fund, to the extent
17possible; and (3) if the membership of the board falls below 3
18persons, the Illinois Director of Insurance or his designee
19shall be deemed a member of the board, ex officio.
20 (b) The members of the boards of trustees serving on
21December 31, 2020 may continue to exercise the powers of that
22office until March 1, 2021 for the sole purpose of assisting in
23the consolidation of their respective pension funds, but
24subject to the supervision and requirements of the Transition
25Board.
26 (c) Beginning January 1, 2021, and until the board

HB1570- 52 -LRB101 06712 RPS 51739 b
1established under subsection (d) has been elected and assumes
2its duties, the Transition Board established under Section
34-101.1 shall operate as the Board of Trustees of the Fund.
4 (d) Beginning January 1, 2022, or as soon thereafter as it
5is able to assume its duties, the Board of Trustees of the
6Downstate Firefighters Pension Fund shall consist of 11
7members. The Board shall consist of representatives of various
8groups as follows:
9 (1) One trustee, appointed by the Governor, who shall
10 serve as the chairman and may vote only in the event of a
11 tie.
12 (2) Five trustees shall each be a mayor, chief elected
13 officer, chief executive officer, chief finance officer,
14 or other officer, executive, or department head of a
15 participating municipality, and each such trustee shall be
16 designated as an executive trustee.
17 (3) Three trustees shall each be a firefighter
18 participating in the Fund, and each such trustee shall be
19 designated as a firefighter trustee. No person shall be
20 eligible to become a firefighter trustee who does not have
21 at least 8 years of creditable service in the Fund.
22 (4) Two trustees shall be retired firefighters of the
23 Fund, who shall be designated the annuitant trustees. No
24 person shall be eligible to become an annuitant trustee who
25 does not have at least 8 years of creditable service in the
26 Fund. For the purposes of this Section and Section 4-121.2,

HB1570- 53 -LRB101 06712 RPS 51739 b
1 a firefighter receiving a disability pension shall be
2 considered a retired firefighter.
3 Beginning January 1, 2021, elections for executive
4trustees shall be conducted in accordance with Section 4-121.1
5and elections for firefighter and annuitant trustees shall be
6conducted in accordance with Section 4-121.2.
7 (e) The executive trustees shall elect one executive
8trustee to serve as vice-chairman. The firefighter trustees and
9annuitant trustees shall elect one firefighter trustee or
10annuitant trustee to serve as vice-chairman.
11 (f) An executive or firefighter trustee shall be
12disqualified immediately upon any change in status which
13removes the trustee from the required employment or office
14within the group he or she represents. The annuitant trustee
15shall be disqualified upon termination or suspension of his or
16her retirement or disability pension.
17 The Board shall fill any vacancy by appointment of a person
18with the appropriate employment status for the period until the
19next election of trustees, or, if the remaining term is less
20than 2 years, for the remainder of the term, and until a
21successor has been elected and has qualified.
22 The members chosen from the active and retired firefighters
23shall be elected by ballot at elections to be held on the 3rd
24Monday in April of the applicable years under the Australian
25ballot system, at such place or places, in the municipality,
26and under such regulations as shall be prescribed by the board.

HB1570- 54 -LRB101 06712 RPS 51739 b
1 No person shall cast more than one vote for each candidate
2for whom he or she is eligible to vote. In the elections for
3board members to be chosen from the active firefighters, all
4active firefighters and no others may vote. In the elections
5for board members to be chosen from retired firefighters, the
6retired firefighters and no others may vote.
7 Each member of the board so elected shall hold office for a
8term of 3 years and until his or her successor has been duly
9elected and qualified.
10 The board shall canvass the ballots and declare which
11persons have been elected and for what term or terms
12respectively. In case of a tie vote between 2 or more
13candidates, the board shall determine by lot which candidate or
14candidates have been elected and for what term or terms
15respectively. In the event of the failure, resignation, or
16inability to act of any board member, a successor shall be
17elected for the unexpired term at a special election called by
18the board and conducted in the same manner as a regular
19election.
20 (g) The Board board shall elect annually from its members a
21president and secretary.
22 (h) Board members shall not receive or have any right to
23receive any salary from the Fund a pension fund for services
24performed as Board board members, but shall be reimbursed for
25any reasonable expenses incurred in attending meetings of the
26Board and in performing duties on behalf of the Fund and for

HB1570- 55 -LRB101 06712 RPS 51739 b
1the amount of any earnings withheld by any employing
2municipality because of attendance at any Board meeting.
3 (i) Except for the chairman, who may vote only in the event
4of a tie, each trustee shall be entitled to one vote on any and
5all actions before the Board. At least 6 concurring votes shall
6be necessary for every decision or action by the Board at any
7of its meetings. No decision or action shall become effective
8unless presented and so approved at a regular or duly called
9special meeting of the Board.
10(Source: P.A. 100-201, eff. 8-18-17.)
11 (40 ILCS 5/4-121.1 new)
12 Sec. 4-121.1. Election of executive trustees.
13 (a) Beginning January 1, 2021, the election of executive
14trustees shall be conducted in accordance with this Section.
15 (b) During the period beginning on August 1 and ending on
16September 15 of each year, the Board shall accept nominations
17of candidates for election as executive trustees for terms
18beginning on the next January 1, and for vacancies to be filled
19by election.
20 All nominations for the position of executive trustee shall
21be by petition, signed by a representative of the governing
22body of at least 5 participating municipalities.
23 (c) The election shall be by ballot and may be conducted in
24person, by mail, or electronically, pursuant to the rules and
25procedures established by the Board.

HB1570- 56 -LRB101 06712 RPS 51739 b
1 All candidates properly nominated in petitions received by
2the Board shall be placed in alphabetical order upon the proper
3ballot. In the initial election, there shall be one election
4for the 5 executive trusteeships, and the 5 candidates getting
5the highest number of votes shall be declared elected.
6 (d) The governing body of each participating municipality
7participating in the Fund shall have one vote at any election
8in which an executive trustee is to be elected, and may cast
9that vote for any candidate on the executive trustee ballot.
10 A vote may be cast for a person not on the ballot by
11writing in his or her name.
12 In case of a tie vote, the candidate employed by the
13municipality having the greatest number of participating
14firefighters at the time of the election shall be declared
15elected.
16 (e) The election shall be completed by December 1 of the
17year. The results shall be entered in the minutes of the
18meeting of the Board following the tally of votes.
19 (f) Each executive trustee so elected shall hold office for
20a term of 4 years and until his or her successor has been duly
21elected and qualified. However, for the initial executive
22trustees, 2 of the initial executive trustees shall serve for a
23term of one year, one initial executive trustee shall serve for
24a term of 2 years, one initial executive trustee shall serve
25for a term of 3 years, and one initial executive trustee shall
26serve for a term of 4 years. The terms of the initial executive

HB1570- 57 -LRB101 06712 RPS 51739 b
1trustees shall be determined by lot at the first meeting of the
2Board.
3 (40 ILCS 5/4-121.2 new)
4 Sec. 4-121.2. Election of firefighter and annuitant
5trustees.
6 (a) Beginning January 1, 2021, the election of firefighter
7and annuitant trustees shall be conducted in accordance with
8this Section. The annuitant trustees shall be elected in an
9election separate from the election for firefighter trustees.
10 (b) During the period beginning on August 1 and ending on
11September 15 of each applicable year, the Board shall accept
12nominations of candidates for election as firefighter or
13annuitant trustees for terms beginning on the next January 1,
14and for vacancies to be filled by election.
15 All nominations for the position of firefighter trustee
16shall be by petition, signed by at least 50 active firefighters
17participating in the Fund. All nominations for the position of
18annuitant trustee shall be by petition, signed by at least 25
19annuitants of the Fund.
20 (c) The election shall be by ballot and may be conducted in
21person, by mail, or electronically, pursuant to the rules and
22procedures established by the Board.
23 All candidates properly nominated in petitions received by
24the Board shall be placed in alphabetical order on the proper
25ballot. In the initial election, there shall be one election

HB1570- 58 -LRB101 06712 RPS 51739 b
1for the 3 firefighter trusteeships, and the 3 candidates
2getting the highest number of votes shall be declared elected.
3In the initial election there shall be one election for the 2
4annuitant trusteeships, and the 2 candidates receiving the
5highest number of votes shall be declared elected.
6 (d) No person shall cast more than one vote for each
7candidate for whom he or she is eligible to vote. In elections
8for board members to be chosen from the active firefighters,
9all active firefighters and no others may vote. In elections
10for board members to be chosen from retired firefighters, all
11retired firefighters and no others may vote.
12 In case of a tie vote, the candidate currently (or in the
13case of an annuitant trustee, formerly) employed by the
14municipality having the greatest number of participating
15firefighters at the time of the election shall be declared
16elected.
17 (e) The election shall be completed by December 1 of the
18year. The result shall be entered in the minutes of the meeting
19of the Board following the tally of votes.
20 (f) Each trustee so elected shall hold office for a term of
214 years and until his or her successor has been duly elected
22and qualified, except that the initial firefighter trustees
23shall serve for terms of one, 2, or 3 years, as determined by
24lot at the first meeting of the Board. The initial annuitant
25trustees shall serve terms of 3 or 4 years, as determined by
26lot at the first meeting of the Board.

HB1570- 59 -LRB101 06712 RPS 51739 b
1 (40 ILCS 5/4-124) (from Ch. 108 1/2, par. 4-124)
2 Sec. 4-124. To enforce contributions. To assess each
3firefighter the contributions required under Section 4-118.1.
4The contributions deducted from salaries, together with all
5interest accruing thereon, shall be paid promptly placed by the
6treasurer of the municipality as ex officio treasurer of the
7board, to the Treasurer credit of the Fund pension fund,
8subject to the order of the Board board.
9(Source: P.A. 83-1440.)
10 (40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
11 Sec. 4-128. To invest funds. To determine the limitations
12on the amounts of cash to be invested in order to maintain such
13cash balances as may be deemed advisable to meet current
14annuity, benefit, and expense requirements, and to invest the
15remaining available cash in securities, in accordance with the
16prudent person investment rule and the other provisions of this
17Article. Beginning on the consolidation date, the Article 1 and
181A restrictions on the investment of Article 4 Funds no longer
19apply, to the extent that they do not also apply to Article 7
20of this Code. Beginning January 1, 1998, the board shall invest
21funds in accordance with Sections 1-113.1 through 1-113.10 of
22this Code.
23(Source: P.A. 90-507, eff. 8-22-97.)

HB1570- 60 -LRB101 06712 RPS 51739 b
1 (40 ILCS 5/4-129.5 new)
2 Sec. 4-129.5. Custodian. The Board shall appoint one or
3more custodians to receive and hold the assets of the Fund on
4such terms as the Board may agree.
5 (40 ILCS 5/4-130.1 new)
6 Sec. 4-130.1. Deposit and disposition of funds; custodian.
7 (a) All money received by the Board shall immediately be
8deposited with the custodian for the account of the Fund. All
9payments from the accounts of the Fund shall be made by the
10custodian only, and only by a check or draft signed by the
11president of the board or the executive director, as the board
12may direct. Such checks and drafts shall be drawn only upon
13proper authorization by the board as properly recorded in the
14official minute books of the meetings of the Board.
15 (b) The assets of the Pension Fund shall be invested as one
16fund, and no particular person or municipality shall have any
17right in any specific security or in any item of cash other
18than an undivided interest in the whole.
19 (c) If a participating municipality terminates
20participation because it fails to meet the requirements of
21Section 4-103, it shall pay to the Fund the amount equal to any
22net debit balance in its municipality account and any account
23receivable. Its successors, assigns, and transferees of its
24assets shall be obligated to make this payment to the extent of
25the value of assets transferred to them. The Fund shall pay an

HB1570- 61 -LRB101 06712 RPS 51739 b
1amount equal to any net credit balance to the participating
2municipality, its successors or assigns. Any remaining net
3debit or credit balance not collectible or payable shall be
4transferred to a terminated municipality reserve account. The
5Fund shall pay to each firefighter of the participating
6municipality an amount equal to his or her credits in the
7employee reserves. The employees shall have no further rights
8to any benefits from the Fund, except that annuities awarded
9prior to the date of termination shall continue to be paid.
10 (40 ILCS 5/4-130.3 new)
11 Sec. 4-130.3. Authorizations.
12 (a) Each participating municipality shall:
13 (1) Deduct all normal and additional contributions
14 from each payment of earnings payable to each participating
15 employee who is entitled to any earnings from the
16 municipality, and remit all normal and additional
17 contributions immediately to the Board; and
18 (2) Pay to the Board contributions required by this
19 Article.
20 (b) Each participating employee shall, by virtue of the
21payment of contributions to this Fund, receive a vested
22interest in the annuities and benefits provided in this Article
23and in consideration of such vested interest shall be deemed to
24have agreed and authorized the deduction from earnings of all
25contributions payable to this Fund in accordance with this

HB1570- 62 -LRB101 06712 RPS 51739 b
1Article.
2 (c) Payment of earnings less the amounts of contributions
3provided in this Article shall be a full and complete discharge
4of all claims for payment for services rendered by any employee
5during the period covered by any such payment.
6 (40 ILCS 5/4-130.4 new)
7 Sec. 4-130.4. Executive director. The executive director
8shall be in charge of the general administration of the Fund
9and shall have such special powers and duties as may be
10properly delegated or assigned by the Board from time to time.
11Such general administrative duties shall include: the
12computation of the amounts of annuities, benefits, prior
13service credits, and contributions required for reinstatement
14of credits for Board consideration; the processing of approved
15benefit claims and expenses of administration for payment; the
16placing of any and all matters before the Board which require
17action or are in the interest of the Board or the Fund; the
18preparation and maintenance of necessary and proper records for
19administrative and actuarial purposes; the conduct of any
20necessary or desirable communications in the course of
21operations of the Fund; and the carrying out of any actions of
22the Board which are so delegated.
23 (40 ILCS 5/4-130.5 new)
24 Sec. 4-130.5. Actuary.

HB1570- 63 -LRB101 06712 RPS 51739 b
1 (a) The actuary shall be the technical advisor of the
2Board. In addition to general advice, the actuary shall
3specifically be responsible for and shall make a general
4investigation, at least once every 3 years, of the experience
5of the participating municipalities as to mortality,
6disability, retirement, separation, marital status of
7employees, marriage of surviving spouses, interest, and
8employee earnings rates, and to make recommendations as a
9result of any such investigation as to:
10 (1) the actuarial tables to be used for computing
11 annuities and benefits and for determining the premiums for
12 disability and death benefit purposes;
13 (2) the tables to be used in any regular actuarial
14 valuations; and
15 (3) the prescribed rate of interest.
16 (b) The actuary shall make the computations of municipality
17obligations, contribution rates including annual valuations of
18the liabilities and reserves for present and prospective
19annuities and benefits, and certify to the correctness thereof.
20 (c) The actuary shall advise the Board on any matters of an
21actuarial nature affecting the Fund.
22 (40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
23 Sec. 4-134. Report for tax levy.
24 (a) The Board board shall report to the governing body of
25each participating city council or board of trustees of the

HB1570- 64 -LRB101 06712 RPS 51739 b
1municipality on the condition of the Fund pension fund at the
2end of its most recently completed fiscal year. The report
3shall be made prior to the council or board meeting held for
4appropriating and levying taxes for the year for which the
5report is made.
6 The pension board in the report shall certify and provide
7the following information to the city council or board of
8trustees of the municipality:
9 (1) the total assets of the fund and the their current
10 market value of those assets;
11 (2) the estimated receipts during the next succeeding
12 fiscal year from deductions from the salaries or wages of
13 firefighters, and from all other sources;
14 (3) the estimated amount necessary during the fiscal
15 year to meet the annual actuarial requirements of the
16 pension fund as provided in Sections 4-118 and 4-120;
17 (4) the total net income received from investment of
18 assets along with the assumed investment return and actual
19 investment return received by the Fund fund during its most
20 recently completed fiscal year compared to the total net
21 income, assumed investment return, and actual investment
22 return received during the preceding fiscal year;
23 (5) the increase in employer pension contributions
24 that results from the implementation of the provisions of
25 Public Act 93-689 this amendatory Act of the 93rd General
26 Assembly;

HB1570- 65 -LRB101 06712 RPS 51739 b
1 (6) the total number of active employees who are
2 financially contributing to the fund;
3 (7) the total amount that was disbursed in benefits
4 during the fiscal year, including the number of and total
5 amount disbursed to (i) annuitants in receipt of a regular
6 retirement pension, (ii) recipients being paid a
7 disability pension, and (iii) survivors and children in
8 receipt of benefits;
9 (8) the funded ratio of the Fund fund; and
10 (9) the unfunded liability carried by the Fund fund,
11 along with an actuarial explanation of the unfunded
12 liability. ; and
13 (10) the investment policy of the pension board under
14 the statutory investment restrictions imposed on the fund.
15 Before the Board pension board makes its report, the Fund
16municipality shall have the assets of the Fund fund and their
17current market value verified by an independent certified
18public accountant of its choice.
19 (b) A participating The municipality is authorized to
20publish the report submitted under this Section. This
21publication may be made, without limitation, by publication in
22a local newspaper of general circulation in the municipality or
23by publication on the municipality's Internet website. If the
24municipality publishes the report, then that publication must
25include all of the information relating to that municipality
26submitted by the Board pension board under subsection (a).

HB1570- 66 -LRB101 06712 RPS 51739 b
1(Source: P.A. 95-950, eff. 8-29-08.)
2 Section 90. The State Mandates Act is amended by adding
3Section 8.43 as follows:
4 (30 ILCS 805/8.43 new)
5 Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 101st General Assembly.
9 Section 99. Effective date. This Act takes effect upon
10becoming law, except that Sections 5 and 15 take effect January
111, 2021.

HB1570- 67 -LRB101 06712 RPS 51739 b
1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 200/18-185
4 40 ILCS 5/4-101from Ch. 108 1/2, par. 4-101
5 40 ILCS 5/4-101.1 new
6 40 ILCS 5/4-101.2 new
7 40 ILCS 5/7-199.5 new
8 40 ILCS 5/4-102.1 new
9 40 ILCS 5/4-103from Ch. 108 1/2, par. 4-103
10 40 ILCS 5/4-104.5 new
11 40 ILCS 5/4-105from Ch. 108 1/2, par. 4-105
12 40 ILCS 5/4-105c
13 40 ILCS 5/4-105d
14 40 ILCS 5/4-106.5 new
15 40 ILCS 5/4-108from Ch. 108 1/2, par. 4-108
16 40 ILCS 5/4-118from Ch. 108 1/2, par. 4-118
17 40 ILCS 5/4-118.1from Ch. 108 1/2, par. 4-118.1
18 40 ILCS 5/4-121from Ch. 108 1/2, par. 4-121
19 40 ILCS 5/4-121.1 new
20 40 ILCS 5/4-121.2 new
21 40 ILCS 5/4-124from Ch. 108 1/2, par. 4-124
22 40 ILCS 5/4-128from Ch. 108 1/2, par. 4-128
23 40 ILCS 5/4-129.5 new
24 40 ILCS 5/4-130.1 new
25 40 ILCS 5/4-130.3 new

HB1570- 68 -LRB101 06712 RPS 51739 b