Bill Text: IL HB4640 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. In the definition of "municipality", increases the threshold for mandatory creation of a pension fund from 5,000 to 10,000 inhabitants. Provides that any city, village, or incorporated town of 5,000 or more but less than 10,000 inhabitants that has not established a pension fund may elect to do so by ordinance or referendum. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-04-08 - Rule 19(a) / Re-referred to Rules Committee [HB4640 Detail]

Download: Illinois-2015-HB4640-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4640 Introduced , by Rep. Robert W. Pritchard SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-103 from Ch. 108 1/2, par. 3-103
40 ILCS 5/3-145 from Ch. 108 1/2, par. 3-145
40 ILCS 5/4-103 from Ch. 108 1/2, par. 4-103
40 ILCS 5/4-141 from Ch. 108 1/2, par. 4-141
Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. In the definition of "municipality", increases the threshold for mandatory creation of a pension fund from 5,000 to 10,000 inhabitants. Provides that any city, village or incorporated town of 5,000 or more but less than 10,000 inhabitants that has not established a pension fund may elect to do so by ordinance or referendum. Effective immediately.
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PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Sections 3-103, 3-145, 4-103, and 4-141 as follows:
(40 ILCS 5/3-103) (from Ch. 108 1/2, par. 3-103)
Sec. 3-103. Municipality. "Municipality": (1) Any city,
village or incorporated town of 10,000 5,000 or more but less
than 500,000 inhabitants, as determined from the United States
Government statistics or a census taken at any time by the
city, village or incorporated town; and (2) any city, village
or incorporated town of 5,000 or more but less than 10,000
inhabitants that has established a pension fund under this
Article on or before the effective date of this amendatory Act
of the 99th General Assembly or elects, by ordinance, to adopt
this Article after that effective date; and (3) any city,
village or incorporated town of less than 10,000 5,000
inhabitants which, by referendum held under Section 3-145,
adopts this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-145) (from Ch. 108 1/2, par. 3-145)
Sec. 3-145. Referendum in municipalities less than 10,000

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5,000.
(a) As used in this Section, the term "municipality" means
any city, village, or incorporated town in Illinois,
notwithstanding Section 3-103 of this Article.
This Article shall become not be effective in any
municipality having a population of less than 10,000 if 5,000
unless the proposition to adopt the Article is submitted to and
approved by the voters of the municipality in the manner herein
provided.
Whenever the electors of the municipality, equal in number
to 5% of the number of legal votes cast at the last preceding
general municipal election, petition the city, village or town
clerk to submit the proposition whether that municipality shall
adopt this Article, the officer to whom the petition is
addressed shall certify the proposition to the proper election
officials who shall submit the proposition in accordance with
the general election law at a regular election in the
municipality provided that notice of the referendum, if held
before July 1, 1999, has been given in accordance with the
provisions of Section 12-5 of the Election Code in effect at
the time of the bond referendum, at least 10 and not more than
45 days before the date of the election, notwithstanding the
time for publication otherwise imposed by Section 12-5. Notices
required in connection with the submission of public questions
on or after July 1, 1999 shall be as set forth in Section 12-5
of the Election Code. If the proposition is not adopted at that

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election, it may be submitted in like manner at any regular
election thereafter. The proposition shall be substantially in
the following form:
-------------------------------------------------------------
Shall the city (or village or
incorporated town) of.... adopt YES
Article 3 of the "Illinois Pension -----------------------
Code", pertaining to the creation NO
of a police pension fund?
-------------------------------------------------------------
If a majority of the votes cast on the proposition is for the
proposition, this Article is adopted in that municipality.
(b) For a period of 60 days after August 10, 2009 (the
effective date of Public Act 96-216) this amendatory Act of the
96th General Assembly, if a municipality having a population of
less than 5,000 has adopted this Article in accordance with the
provisions of subsection (a), the municipality may elect to
terminate participation under this Article if all of the
following conditions are met:
(1) An independent auditor certifies that the fund
created under this Article has no liabilities and there are
no members or participants in the fund and no beneficiaries
entitled to benefits under the fund.
(2) The corporate authorities of the municipality, by
ordinance, approve the closing of the fund.
If the conditions of this subsection (b) are met and the

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closed fund contains assets, those assets shall be transferred
to the municipality for its general corporate purposes.
If a municipality that terminates participation under this
Article in accordance with this subsection (b) wants to
reinstate the fund, then the proposition to re-adopt the
Article must be submitted to and approved by the voters of the
municipality in the manner provided in subsection (a).
(Source: P.A. 96-216, eff. 8-10-09.)
(40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
Sec. 4-103. Municipality. "Municipality": (1) Any city,
township, village or incorporated town of 10,000 5,000 or more
but less than 500,000 inhabitants, and any fire protection
district having any full-time paid firefighters; , and (2) any
city, village or incorporated town of 5,000 or more but less
than 10,000 inhabitants that has established a pension fund
under this Article on or before the effective date of this
amendatory Act of the 99th General Assembly or elects, by
ordinance, to adopt this Article after that effective date; and
(3) any city, village, incorporated town or township of less
than 10,000 5,000 inhabitants having a full-time paid fire
department which adopts the provisions of this article pursuant
to the provisions of Section 4-141.
The term "city council" or "board of trustees" includes the
board of trustees of a fire protection district and the board
of town trustees or other persons empowered to draft the

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tentative budget and appropriation ordinance and the electors
of such a township acting at the annual or special meeting of
town electors.
(Source: P.A. 83-1440.)
(40 ILCS 5/4-141) (from Ch. 108 1/2, par. 4-141)
Sec. 4-141. Referendum in municipalities less than 10,000
5,000.
(a) As used in this Section, the term "municipality" means
any city, village, or incorporated town in Illinois,
notwithstanding Section 4-103 of this Article.
(b) This Article shall become effective in any municipality
having a population of less than 10,000 5,000, population if
the proposition to adopt the Article is submitted to and
approved by the voters of the municipality in the manner herein
provided.
(c) Whenever the electors of the municipality equal in
number to 5% of the number of legal votes cast at the last
preceding general municipal election for mayor or president, as
the case may be, petition the corporate authorities of the
municipality to submit the proposition whether that
municipality shall adopt this Article, the municipal clerk
shall certify the proposition to the proper election official
who shall submit it to the electors in accordance with the
general election law at the next succeeding regular election in
the municipality. If the proposition is not adopted at that

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election, it may be submitted in like manner at any regular
election thereafter.
The proposition shall be substantially in the following
form:
-------------------------------------------------------------
Shall the city (or village or
incorporated town as the case may be) YES
of.... adopt Article 4 of the
"Illinois Pension Code", ------------------
providing for a Firefighters' NO
Pension Fund and the levying
of an annual tax therefor?
-------------------------------------------------------------
If a majority of the votes cast on the proposition is for
the proposition, this Article is adopted in that municipality.
(Source: P.A. 83-1440.)
Section 99. Effective date. This Act takes effect upon
becoming law.