Bill Text: IL SB3424 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. Merges all Article 4 firefighters' pension funds into a single Downstate Firefighters Pension Fund on January 1, 2020. 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, 2021. 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, 2020.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB3424 Detail]

Download: Illinois-2017-SB3424-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3424 Introduced 2/16/2018, by Sen. Pamela J. Althoff 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, 2020. 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, 2021. 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, 2020.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
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 Property Tax Code is amended by changing
Section 18-185 as follows:
(35 ILCS 200/18-185)
Sec. 18-185. Short title; definitions. This Division 5 may
be cited as the Property Tax Extension Limitation Law. As used
in this Division 5:
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the rate
of increase approved by voters under Section 18-205.
"Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000 or
more inhabitants.
"Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of

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its 1990 equalized assessed value within any county or counties
contiguous to a county with 3,000,000 or more inhabitants.
Beginning with the 1995 levy year, "taxing district" includes
only each non-home rule taxing district subject to this Law
before the 1995 levy year and each non-home rule taxing
district not subject to this Law before the 1995 levy year
having the majority of its 1994 equalized assessed value in an
affected county or counties. Beginning with the levy year in
which this Law becomes applicable to a taxing district as
provided in Section 18-213, "taxing district" also includes
those taxing districts made subject to this Law as provided in
Section 18-213.
"Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made for
any taxing district to pay interest or principal on general
obligation bonds issued before October 1, 1991; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before October 1, 1991; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after October 1, 1991 that were approved by

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

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School Code, for payment of the school district's share of the
amounts required to be contributed by the Special Education
District of Lake County to the Illinois Municipal Retirement
Fund under Article 7 of the Illinois Pension Code; the amount
of any extension under this item (k) shall be certified by the
school district to the county clerk; (l) made to fund expenses
of providing joint recreational programs for persons with
disabilities under Section 5-8 of the Park District Code or
Section 11-95-14 of the Illinois Municipal Code; (m) made for
temporary relocation loan repayment purposes pursuant to
Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
payment of principal and interest on any bonds issued under the
authority of Section 17-2.2d of the School Code; (o) made
before January 1, 2020 for contributions to a firefighter's
pension fund created under Article 4 of the Illinois Pension
Code, to the extent of the amount certified under item (5) of
Section 4-134 of the Illinois Pension Code; and (p) made for
road purposes in the first year after a township assumes the
rights, powers, duties, assets, property, liabilities,
obligations, and responsibilities of a road district abolished
under the provisions of Section 6-133 of the Illinois Highway
Code; and (q) made for contributions to the Downstate
Firefighters Pension Fund under Article 4 of the Illinois
Pension Code.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing

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districts subject to this Law in accordance with Section
18-213) means the annual corporate extension for the taxing
district and those special purpose extensions that are made
annually for the taxing district, excluding special purpose
extensions: (a) made for the taxing district to pay interest or
principal on general obligation bonds that were approved by
referendum; (b) made for any taxing district to pay interest or
principal on general obligation bonds issued before March 1,
1995; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund those
bonds issued before March 1, 1995; (d) made for any taxing
district to pay interest or principal on bonds issued to refund
or continue to refund bonds issued after March 1, 1995 that
were approved by referendum; (e) made for any taxing district
to pay interest or principal on revenue bonds issued before
March 1, 1995 for payment of which a property tax levy or the
full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or
principal on those bonds shall be made only after the governing
body of the unit of local government finds that all other
sources for payment are insufficient to make those payments;
(f) made for payments under a building commission lease when
the lease payments are for the retirement of bonds issued by
the commission before March 1, 1995 to pay for the building
project; (g) made for payments due under installment contracts
entered into before March 1, 1995; (h) made for payments of

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principal and interest on bonds issued under the Metropolitan
Water Reclamation District Act to finance construction
projects initiated before October 1, 1991; (h-4) made for
stormwater management purposes by the Metropolitan Water
Reclamation District of Greater Chicago under Section 12 of the
Metropolitan Water Reclamation District Act; (i) made for
payments of principal and interest on limited bonds, as defined
in Section 3 of the Local Government Debt Reform Act, in an
amount not to exceed the debt service extension base less the
amount in items (b), (c), and (e) of this definition for
non-referendum obligations, except obligations initially
issued pursuant to referendum and bonds described in subsection
(h) of this definition; (j) made for payments of principal and
interest on bonds issued under Section 15 of the Local
Government Debt Reform Act; (k) made for payments of principal
and interest on bonds authorized by Public Act 88-503 and
issued under Section 20a of the Chicago Park District Act for
aquarium or museum projects; (l) made for payments of principal
and interest on bonds authorized by Public Act 87-1191 or
93-601 and (i) issued pursuant to Section 21.2 of the Cook
County Forest Preserve District Act, (ii) issued under Section
42 of the Cook County Forest Preserve District Act for
zoological park projects, or (iii) issued under Section 44.1 of
the Cook County Forest Preserve District Act for botanical
gardens projects; (m) made pursuant to Section 34-53.5 of the
School Code, whether levied annually or not; (n) made to fund

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expenses of providing joint recreational programs for persons
with disabilities under Section 5-8 of the Park District Code
or Section 11-95-14 of the Illinois Municipal Code; (o) made by
the Chicago Park District for recreational programs for persons
with disabilities under subsection (c) of Section 7.06 of the
Chicago Park District Act; (p) made before January 1, 2020 for
contributions to a firefighter's pension fund created under
Article 4 of the Illinois Pension Code, to the extent of the
amount certified under item (5) of Section 4-134 of the
Illinois Pension Code; (q) made by Ford Heights School District
169 under Section 17-9.02 of the School Code; and (r) made for
the purpose of making employer contributions to the Public
School Teachers' Pension and Retirement Fund of Chicago under
Section 34-53 of the School Code; and (s) made for
contributions to the Downstate Firefighters Pension Fund under
Article 4 of the Illinois Pension Code.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except for
those taxing districts subject to paragraph (2) of subsection
(e) of Section 18-213, means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before

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the date on which the referendum making this Law applicable to
the taxing district is held; (c) made for any taxing district
to pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the date on which
the referendum making this Law applicable to the taxing
district is held; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after the date on which the referendum
making this Law applicable to the taxing district is held if
the bonds were approved by referendum after the date on which
the referendum making this Law applicable to the taxing
district is held; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the date
on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before the date on which the
referendum making this Law applicable to the taxing district is
held to pay for the building project; (g) made for payments due
under installment contracts entered into before the date on

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which the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the debt
service extension base less the amount in items (b), (c), and
(e) of this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for persons with disabilities
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; (l) made before January 1, 2020
for contributions to a firefighter's pension fund created under
Article 4 of the Illinois Pension Code, to the extent of the
amount certified under item (5) of Section 4-134 of the
Illinois Pension Code; and (m) made for the taxing district to
pay interest or principal on general obligation bonds issued
pursuant to Section 19-3.10 of the School Code; and (n) made
for contributions to the Downstate Firefighters Pension Fund

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under Article 4 of the Illinois Pension Code.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of subsection
(e) of Section 18-213 means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the effective date of this amendatory Act of 1997; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before the effective date of this amendatory Act of 1997; (d)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund bonds issued after
the effective date of this amendatory Act of 1997 if the bonds
were approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to

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make those payments; (f) made for payments under a building
commission lease when the lease payments are for the retirement
of bonds issued by the commission before the effective date of
this amendatory Act of 1997 to pay for the building project;
(g) made for payments due under installment contracts entered
into before the effective date of this amendatory Act of 1997;
(h) made for payments of principal and interest on limited
bonds, as defined in Section 3 of the Local Government Debt
Reform Act, in an amount not to exceed the debt service
extension base less the amount in items (b), (c), and (e) of
this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for persons with disabilities
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; and (l) made before January 1,
2020 for contributions to a firefighter's pension fund created
under Article 4 of the Illinois Pension Code, to the extent of

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the amount certified under item (5) of Section 4-134 of the
Illinois Pension Code; and (m) made for contributions to the
Downstate Firefighters Pension Fund under Article 4 of the
Illinois Pension Code.
"Debt service extension base" means an amount equal to that
portion of the extension for a taxing district for the 1994
levy year, or for those taxing districts subject to this Law in
accordance with Section 18-213, except for those subject to
paragraph (2) of subsection (e) of Section 18-213, for the levy
year in which the referendum making this Law applicable to the
taxing district is held, or for those taxing districts subject
to this Law in accordance with paragraph (2) of subsection (e)
of Section 18-213 for the 1996 levy year, constituting an
extension for payment of principal and interest on bonds issued
by the taxing district without referendum, but not including
excluded non-referendum bonds. For park districts (i) that were
first subject to this Law in 1991 or 1995 and (ii) whose
extension for the 1994 levy year for the payment of principal
and interest on bonds issued by the park district without
referendum (but not including excluded non-referendum bonds)
was less than 51% of the amount for the 1991 levy year
constituting an extension for payment of principal and interest
on bonds issued by the park district without referendum (but
not including excluded non-referendum bonds), "debt service
extension base" means an amount equal to that portion of the
extension for the 1991 levy year constituting an extension for

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

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"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-135, 18-215, 18-230, and 18-206. An adjustment under Section
18-135 shall be made for the 2007 levy year and all subsequent
levy years whenever one or more counties within which a taxing
district is located (i) used estimated valuations or rates when
extending taxes in the taxing district for the last preceding
levy year that resulted in the over or under extension of
taxes, or (ii) increased or decreased the tax extension for the
last preceding levy year as required by Section 18-135(c).
Whenever an adjustment is required under Section 18-135, the
aggregate extension base of the taxing district shall be equal
to the amount that the aggregate extension of the taxing
district would have been for the last preceding levy year if
either or both (i) actual, rather than estimated, valuations or
rates had been used to calculate the extension of taxes for the
last levy year, or (ii) the tax extension for the last
preceding levy year had not been adjusted as required by
subsection (c) of Section 18-135.
Notwithstanding any other provision of law, for levy year
2012, the aggregate extension base for West Northfield School
District No. 31 in Cook County shall be $12,654,592.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new improvements

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

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applicable to the 1995 tax year calculations.
"Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
"Recovered tax increment value" means, except as otherwise
provided in this paragraph, the amount of the current year's
equalized assessed value, in the first year after a
municipality terminates the designation of an area as a
redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, previously
established under the Economic Development Project Area Tax
Increment Act of 1995, or previously established under the
Economic Development Area Tax Increment Allocation Act, of each
taxable lot, block, tract, or parcel of real property in the
redevelopment project area over and above the initial equalized
assessed value of each property in the redevelopment project
area. For the taxes which are extended for the 1997 levy year,
the recovered tax increment value for a non-home rule taxing
district that first became subject to this Law for the 1995
levy year because a majority of its 1994 equalized assessed
value was in an affected county or counties shall be increased
if a municipality terminated the designation of an area in 1993
as a redevelopment project area previously established under

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the Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or previously
established under the Economic Development Area Tax Increment
Allocation Act, by an amount equal to the 1994 equalized
assessed value of each taxable lot, block, tract, or parcel of
real property in the redevelopment project area over and above
the initial equalized assessed value of each property in the
redevelopment project area. In the first year after a
municipality removes a taxable lot, block, tract, or parcel of
real property from a redevelopment project area established
under the Tax Increment Allocation Development Act in the
Illinois Municipal Code, the Industrial Jobs Recovery Law in
the Illinois Municipal Code, or the Economic Development Area
Tax Increment Allocation Act, "recovered tax increment value"
means the amount of the current year's equalized assessed value
of each taxable lot, block, tract, or parcel of real property
removed from the redevelopment project area over and above the
initial equalized assessed value of that real property before
removal from the redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to one
plus the extension limitation defined in this Section and the
denominator of which is the current year's equalized assessed
value of all real property in the territory under the

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

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(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
100-465, eff. 8-31-17.)
Section 10. The Illinois Pension Code is amended by
changing Section 4-101 and by adding Sections 4-101.1, 4-101.2,
and 7-199.5 as follows:
(40 ILCS 5/4-101) (from Ch. 108 1/2, par. 4-101)
Sec. 4-101. Creation of Fund fund.
(a) Until January 1, 2020, in In each municipality as
defined in Section 4-103, the city council or the board of
trustees, as the case may be, shall establish and administer a
firefighters' pension fund as prescribed in this Article, for
the benefit of its firefighters and of their surviving spouses,
children and certain other dependents. The duty of the
corporate authorities of a municipality to establish and
administer a firefighters' pension fund shall be suspended
during any period during which the fund is dissolved under
subsection (c) of Section 4-106.1 of this Code.
(b) On January 1, 2020, all of the individual firefighters'
pension funds then existing under this Article are merged and
consolidated into a single pension fund, to be known as the
Downstate Firefighters Pension Fund, which shall be
established and administered as prescribed in this Article.
(c) Beginning January 1, 2020, each municipality, as
defined in Section 4-103, shall participate in the Downstate

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

SB3424 - 21 - LRB100 20450 MJP 35799 b
retirement system, appointed by the Governor.
(4) One person with experience in auditing Illinois
public employee pension funds or retirement systems,
appointed by the Auditor General.
(5) Two members of the labor organization representing
the largest number of firefighters participating in
Article 4 pension funds, with one member being an active
participant and the other being a retired participant,
appointed by the Governor from recommendations of the
President of that organization.
(6) Two persons who are mayors or chief elected
officers of municipalities that maintain an Article 4
pension fund, appointed by the Governor from
recommendations of the Executive Director of the
organization representing the largest number of
municipalities in the State.
(7) One person familiar with the operation and
administration of the Illinois Municipal Retirement Fund,
appointed by the Executive Director of that Fund.
(8) One person familiar with the investment authority
and practices of the Illinois State Board of Investment,
appointed by the Executive Director of the Illinois State
Board of Investment.
All such appointments and designations shall be made by
filing a written notice thereof with the Secretary of State no
later than 30 days after the effective date of this amendatory

SB3424 - 22 - LRB100 20450 MJP 35799 b
Act of the 100th General Assembly.
(b) The Transition Board shall be responsible for planning,
overseeing, and administering the consolidation and merger of
all existing Article 4 pension funds into a single Downstate
Firefighters Pension Fund.
Members of the Transition Board shall act at all times in a
manner appropriate for fiduciaries of the Fund and fiduciaries
of the pension funds being consolidated.
The Transition Board's powers and duties include, but are
not limited to, the following:
(1) Providing for the establishment of offices,
infrastructure, and personnel necessary for the operation
of the Downstate Firefighters Pension Fund.
(2) Providing for the preservation and consolidation
of membership, beneficiary, financial, and other records
relating to the Article 4 pension funds to be merged.
(3) Obtaining all necessary Internal Revenue Service
and any other necessary approval or review.
(4) Providing for the final auditing of existing
Article 4 pension funds, including a final accounting of
their respective assets and liabilities, paid for by the
applicable pension fund.
(5) Providing for the custody and transfer of the
assets and liabilities of the existing Article 4 pension
funds to the Downstate Firefighters Pension Fund, on a
schedule to be determined by the Transition Board.

SB3424 - 23 - LRB100 20450 MJP 35799 b
(6) Providing for the long-term investment of the
assets of the Downstate Firefighters Pension Fund that are
not required for the short-term payment of benefits.
(7) Providing an appropriate system of accounting for
the assets and liabilities attributable to the existing
Article 4 pension funds and establishing separate reserves
and accounts for each municipality participating in the
Downstate Firefighters Pension Fund in accordance with
this Article. In so doing, the Transition Board shall be
guided by the methods and experience of the Illinois
Municipal Retirement Fund.
(8) Providing an appropriate system of determining,
administering, receiving, and enforcing the required
municipal contributions to the Fund. In so doing, the
Transition Board shall be guided by the methods and
experience of the Illinois Municipal Retirement Fund. The
municipal contribution rate shall be determined separately
for each municipality on an annual basis in accordance with
the requirements of this Article, based on the
municipality's separate reserves and accounts within the
Fund. The Transition Board shall endeavor to determine the
required municipal contributions to the Fund and to notify
and provide reasonable guidance to municipalities in a
manner that ensures uninterrupted contributions during the
transition period.
(9) Ensuring the uninterrupted payment and

SB3424 - 24 - LRB100 20450 MJP 35799 b
administration of benefits.
(10) Adopting any rules or procedures necessary for the
efficient consolidation of the existing Article 4 pension
funds and the efficient operation and administration of the
Downstate Firefighters Pension Fund.
(11) Considering the consequences of the consolidation
on any QILDROs filed with the pension funds being
consolidated and giving appropriate notice and advice to
persons who may be affected by those QILDROs concerning the
possible effects of consolidation.
(12) Administering the Downstate Firefighters Pension
Fund and exercising and performing all of the powers and
duties of its Board of Trustees from the time of the Fund's
inception until the Board of Trustees under subsection (d)
of Section 4-121 has been elected and assumes its duties.
(13) Making recommendations to the Governor and the
General Assembly with respect to legislation necessary or
useful for the implementation of this consolidation or for
the successful operation of the Downstate Firefighters
Pension Fund.
(c) The Public Pension Division of the Department of
Insurance shall provide all reasonably necessary and available
temporary office space, technical and clerical support, and
monetary or other assistance at the request of the Transition
Board.
For the purpose of implementing the consolidation, the

SB3424 - 25 - LRB100 20450 MJP 35799 b
Transition Board may direct the Public Pension Division to
accelerate, expand, or enhance its examination under Section
1A-104 of all or specific Article 4 pension funds, or to
conduct a particular study or investigation thereof. The
expenses of such examinations and investigations, to the extent
not paid by the Division, shall be charged to the applicable
pension fund.
(d) The Illinois Municipal Retirement Fund is authorized to
provide any reasonable managerial, professional, clerical, and
other assistance to the Transition Board that is consistent
with its fiduciary and other obligations.
The Transition Board is authorized to enter into reasonable
contracts or other agreements with the Illinois Municipal
Retirement Fund, without public bidding or procurement
procedures but not exceeding 3 years in duration, to provide
administrative, investment, professional, technical, or other
services or facilities for the Downstate Firefighters Pension
Fund.
(e) In preparation for the inception of the Downstate
Firefighters Pension Fund on January 1, 2020 and during the
period of its administration of that Fund, the Transition Board
is authorized to expend or obligate the assets of the Fund for
any of the reasonable expenses of the Fund, including the
payment of benefits and reasonable administrative expenses. As
used in this Section, "reasonable administrative expenses"
includes, but is not limited to, the cost of hiring personnel

SB3424 - 26 - LRB100 20450 MJP 35799 b
and obtaining professional services, the cost of leases or
purchases of property or services for the Fund, the cost of
insurance, and the cost of indemnifying members of the
Transition Board and its employees, advisors, and agents.
(f) In preparation for the inception of the Downstate
Firefighters Pension Fund on January 1, 2020, the Transition
Board is specifically authorized to retain for the Fund, during
the period before its inception, an executive director and an
actuary with the powers and duties described in Sections
4-130.4 and 4-130.5.
(g) Members of the Transition Board, other than State
officials and employees, may be compensated for their service,
and all members may be reimbursed for their reasonable expenses
out of any moneys available for that purpose.
(h) Sixty days after the Board of Trustees under subsection
(d) of Section 4-121 assumes its duties, the Transition Board
is abolished.
(40 ILCS 5/4-101.2 new)
Sec. 4-101.2. Consolidation of pension funds.
(a) On January 1, 2020, all of the individual firefighters'
pension funds then established under this Article are merged
and consolidated into a single pension fund, to be known as the
Downstate Firefighters Pension Fund, which shall be
established and administered as prescribed in this Article.
In preparation for that consolidation, all pension funds

SB3424 - 27 - LRB100 20450 MJP 35799 b
established under this Article, and the municipalities that
established them, shall cooperate with the Transition Board.
(b) The Downstate Firefighters Pension Fund shall be the
legal successor to each of the pension funds that are
consolidated within it, and it may exercise any of the rights
and powers and perform any of the duties of those pension
funds.
At the time of consolidation, or as otherwise directed by
the Transition Board, all assets and liabilities belonging to
or arising from the trust of an existing pension fund shall
become the assets and liabilities of the Downstate Firefighters
Pension Fund.
As and when directed by the Transition Board, the trustees
of the pension funds established under Article 4 of this Code
shall transfer to the Downstate Firefighters Pension Fund, for
management and investment as assets of the Downstate
Firefighters Pension Fund, all of their securities and other
investments not needed for immediate use.
(c) At the time of consolidation or as otherwise directed
by the Transition Board, assets not belonging to or arising
from the trust that are incidentally owned by a pension fund,
and any incidental liabilities of a pension fund not relating
to or arising from the trust, shall become the assets and
liabilities of the municipality.
Assets not belonging to or arising from the trust that are
owned by a municipality and incidentally used by a pension

SB3424 - 28 - LRB100 20450 MJP 35799 b
fund, and any associated liabilities, are not affected by the
consolidation and shall continue to be be managed as assets and
liabilities of that municipality.
As necessary or useful to effectuate the consolidation, the
board of trustees of a pension fund to be consolidated and the
applicable municipality may each, in its discretion, continue
or renegotiate any employment or service contract, lease, or
other contract to which it is a party that relates to the
operation of the consolidated pension fund, and it may take
appropriate action to terminate any such contract as necessary
to terminate or avoid unnecessary or duplicative personnel,
facilities, or services.
(d) Beginning on January 1, 2020, all benefits payable
under this Article shall be payable from the Downstate
Firefighters Pension Fund.
(e) The consolidation of pension funds under this Article
shall not diminish or impair the benefits of any current or
former firefighter who participated in one of those pension
funds, or of any such firefighter's surviving spouse, children,
or other dependents.
The consolidation of pension funds under this Article does
not entitle any person to a recalculation or combination of any
benefit or benefits previously granted or to a refund of any
contribution previously paid.
The consolidation of pension funds under this Article is
not intended to increase the benefits provided under this

SB3424 - 29 - LRB100 20450 MJP 35799 b
Article, except insofar as the consolidation of pension funds
into a single Fund will allow firefighters in active service on
or after the consolidation date to have their benefit
calculations (and those of their qualifying survivors) include
consideration of all of the firefighter's service, salary, and
credits in the Fund as though arising under that single Fund,
rather than as arising under more than one participating
municipality or more than one Article 4 pension fund.
(40 ILCS 5/7-199.5 new)
Sec. 7-199.5. To assist in the creation and administration
of the Downstate Firefighters Pension Fund. To assist in the
creation and administration of the Downstate Firefighters
Pension Fund under Article 4 of this Code, including assisting
the Downstate Firefighters Pension Fund Transition Board,
created under Section 4-101.1 of this Code; and pursuant to any
contract or other agreement it may enter into with the
Transition Board or the Board of Trustees of the Downstate
Firefighters Pension Fund, to provide for the administrative
staff of one Fund to provide assistance to or consolidate
particular services or operations with that of the other Fund,
to the extent consistent with their respective fiduciary and
other responsibilities.
Section 15. The Illinois Pension Code is amended by
changing Sections 4-103, 4-105, 4-105c, 4-105d, 4-108, 4-118,

SB3424 - 30 - LRB100 20450 MJP 35799 b
4-118.1, 4-121, 4-124, 4-128, and 4-134 and by adding Sections
4-102.1, 4-104.5, 4-106.5, 4-121.1, 4-121.2, 4-129.5, 4-130.1,
4-130.3, 4-130.4, and 4-130.5 as follows:
(40 ILCS 5/4-102.1 new)
Sec. 4-102.1. Fund. "Fund" or "pension fund": Until January
1, 2020, a firefighters' pension fund established by a
municipality under this Article.
Beginning January 1, 2020, "Fund" or "pension fund" means
the Downstate Firefighters Pension Fund created under this
Article to consolidate all of the individual pension funds
previously established under this Article; depending on the
context, the terms may include one or more of those previously
established pension funds.
(40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
Sec. 4-103. Municipality; participating municipality;
governing body.
(a) "Municipality": (1) Any city, township, village or
incorporated town of 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,
incorporated town or township of less than 5,000 inhabitants
having a full-time paid fire department which adopts the
provisions of this Article article pursuant to the provisions
of Section 4-141.

SB3424 - 31 - LRB100 20450 MJP 35799 b
(b) The term "participating municipality" means a
municipality, as defined in subsection (a), that both is
required (or has elected) to and does in fact participate in
the Downstate Firefighters Pension Fund under this Article.
(c) The term "governing body", "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 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 5/4-104.5 new)
Sec. 4-104.5. Prescribed rate of interest. "Prescribed
rate of interest": The rate of interest to be used for
calculation of the rates of municipality contributions and
amounts of annuities and benefits as determined by the Board on
the basis of the probable effective rate of interest on a long
term basis.
(40 ILCS 5/4-105) (from Ch. 108 1/2, par. 4-105)
Sec. 4-105. Board. "Board": Until January 1, 2020, the The
"Board of Trustees of the Firefighters' Pension Fund" of a
municipality as established in subsection (a) of Section 4-121.
Beginning January 1, 2020, the Board of Trustees of the
Downstate Firefighters Pension Fund created under this Article

SB3424 - 32 - LRB100 20450 MJP 35799 b
to consolidate all of the individual pension funds previously
established under this Article, as established in subsection
(d) of Section 4-121, or until that board is established and
has assumed its duties, the Transition Board created under
Section 4-101.1; depending on the context, the term may include
the former board of trustees of one or more of those previously
established pension funds.
(Source: P.A. 83-1440.)
(40 ILCS 5/4-105c)
Sec. 4-105c. Participant. "Participant": A firefighter or
deferred pensioner of the Fund a pension fund, or a beneficiary
of the Fund pension fund.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/4-105d)
Sec. 4-105d. Beneficiary. "Beneficiary": A person
receiving benefits from the Fund a pension fund, including, but
not limited to, retired pensioners, disabled pensioners, their
surviving spouses, minor children, disabled children, and
dependent parents.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/4-106.5 new)
Sec. 4-106.5. Authorized agent of a participating
municipality.

SB3424 - 33 - LRB100 20450 MJP 35799 b
(a) Each participating municipality shall appoint an
authorized agent who shall have the powers and duties set forth
in this Section. In the absence of such an appointment, the
duties of the authorized agent shall devolve upon the clerk or
secretary of the municipality.
(b) The authorized agent of the municipality shall have the
following powers and duties:
(1) To certify to the Fund whether or not a given
person is authorized to participate in the Fund.
(2) To certify to the Fund when a participating
employee is on a leave of absence authorized by the
municipality.
(3) To request the proper officer to cause employee
contributions to be withheld from salary and promptly
transmitted to the Fund.
(4) To request the proper officer to cause municipality
contributions to be promptly forwarded to the Fund.
(5) To forward promptly to all participating employees
any communications for such employees from the Fund or the
municipality.
(6) To forward promptly to the Board of the Fund all
applications, claims reports, and other communications
delivered to the agent by participating employees.
(7) To perform all duties related to the administration
of the Fund as requested by the Fund or the governing body
of the municipality.

SB3424 - 34 - LRB100 20450 MJP 35799 b
(c) The governing body of each participating municipality
may delegate either or both of the following powers to its
authorized agent:
(1) To file a petition for nomination of an executive
trustee of the Fund.
(2) To cast the ballot for election of an executive
trustee of the Fund.
If a governing body does not authorize its agent to perform
the powers set forth in this Section, they shall be performed
by the governing body itself, unless the governing body by
resolution duly certified to the Fund delegates them to some
other officer or employee.
(d) The delivery of any communication or document by an
employee or a municipality to the authorized agent of the
municipality does not constitute delivery to the Fund.
(40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
Sec. 4-108. Creditable service.
(a) Creditable service is the time served as a firefighter
of a municipality. In computing creditable service, furloughs
and leaves of absence without pay exceeding 30 days in any one
year shall not be counted, but leaves of absence for illness or
accident regardless of length, and periods of disability for
which a firefighter received no disability pension payments
under this Article, shall be counted.
(a-5) Upon the consolidation of the firefighters' pension

SB3424 - 35 - LRB100 20450 MJP 35799 b
funds under this Article into the Downstate Firefighters
Pension Fund on January 1, 2020, creditable service under any
such pension fund shall be deemed to be creditable service in
the Downstate Firefighters Pension Fund, subject to the
following provisions:
(1) The consolidation of firefighters' pension funds
into the Downstate Firefighters Pension Fund shall not
result in the duplication of any service credit based on
the same period of service in this or any other pension
fund or retirement system subject to this Code.
(2) If this Section or any other provision of this
Article imposes a limit on the amount of creditable service
that may be established for a particular activity or
purpose, and prior to consolidation a firefighter has
established periods of creditable service for that
activity or purpose in more than one former firefighters'
pension fund under this Article, which periods are within
that limitation for each such fund but together exceed that
limitation, then upon consolidation all such credit
previously established by the firefighter shall be
preserved under the Fund, but no additional creditable
service for that activity or purpose may be established by
that firefighter in the Fund.
(3) The consolidation of firefighters' pension funds
into the Downstate Firefighters Pension Fund shall not
entitle any person or pension fund to a refund of any

SB3424 - 36 - LRB100 20450 MJP 35799 b
contribution or payment previously paid or transferred in
order to establish or transfer creditable service under
this Article.
(b) Furloughs and leaves of absence of 30 days or less in
any one year may be counted as creditable service, if the
firefighter makes the contribution to the Fund fund that would
have been required had he or she not been on furlough or leave
of absence. To qualify for this creditable service, the
firefighter must pay the required contributions to the Fund
fund not more than 90 days subsequent to the termination of the
furlough or leave of absence, to the extent that the
municipality has not made such contribution on his or her
behalf.
(c) Creditable service includes:
(1) Service in the military, naval or air forces of the
United States entered upon when the person was an active
firefighter, provided that, upon applying for a permanent
pension, and in accordance with the rules of the board the
firefighter pays into the Fund fund the amount that would
have been contributed had he or she been a regular
contributor during such period of service, if and to the
extent that the municipality which the firefighter served
made no such contributions in his or her behalf. The total
amount of such creditable service shall not exceed 5 years,
except that any firefighter who on July 1, 1973 had more
than 5 years of such creditable service shall receive the

SB3424 - 37 - LRB100 20450 MJP 35799 b
total amount thereof as of that date.
(1.5) Up to 24 months of service in the military,
naval, or air forces of the United States that was served
prior to employment by a municipality or fire protection
district as a firefighter. To receive the credit for the
military service prior to the employment as a firefighter,
the firefighter must apply in writing to the Fund fund and
must make contributions to the Fund fund equal to (i) the
employee contributions that would have been required had
the service been rendered as a member, plus (ii) an amount
determined by the Fund fund to be equal to the employer's
normal cost of the benefits accrued for that military
service, plus (iii) interest at the prescribed rate
actuarially assumed rate provided by the Department of
Financial and Professional Regulation, compounded annually
from the first date of membership in the Fund fund to the
date of payment on items (i) and (ii). The changes to this
paragraph (1.5) made by Public Act 95-1056 this amendatory
Act of the 95th General Assembly apply only to
participating employees in service on or after April 10,
2009 (its effective date).
(2) Service prior to July 1, 1976 by a firefighter
initially excluded from participation by reason of age who
elected to participate and paid the required contributions
for such service.
(3) Up to 8 years of service by a firefighter as an

SB3424 - 38 - LRB100 20450 MJP 35799 b
officer in a statewide firefighters' association when he is
on a leave of absence from a municipality's payroll,
provided that (i) the firefighter has at least 10 years of
creditable service as an active firefighter, (ii) the
firefighter contributes to the Fund fund the amount that he
would have contributed had he remained an active member of
the Fund fund, (iii) the employee or statewide firefighter
association contributes to the Fund fund an amount equal to
the employer's required contribution as determined by the
board, and (iv) for all leaves of absence under this
subdivision (3), including those beginning before January
5, 2012 (the effective date of Public Act 97-651) this
amendatory Act of the 97th General Assembly, the
firefighter continues to remain in sworn status, subject to
the professional standards of the public employer or those
terms established in statute.
(4) Time spent as an on-call fireman for a
municipality, calculated at the rate of one year of
creditable service for each 5 years of time spent as an
on-call fireman, provided that (i) the firefighter has at
least 18 years of creditable service as an active
firefighter, (ii) the firefighter spent at least 14 years
as an on-call firefighter for the municipality, (iii) the
firefighter applies for such creditable service within 30
days after August 23, 1989 (the effective date of Public
Act 86-273) this amendatory Act of 1989, (iv) the

SB3424 - 39 - LRB100 20450 MJP 35799 b
firefighter contributes to the Fund an amount representing
employee contributions for the number of years of
creditable service granted under this subdivision (4),
based on the salary and contribution rate in effect for the
firefighter at the date of entry into the Fund, to be
determined by the board, and (v) not more than 3 years of
creditable service may be granted under this subdivision
(4).
Except as provided in Section 4-108.5, creditable
service shall not include time spent as a volunteer
firefighter, whether or not any compensation was received
therefor. The change made in this Section by Public Act
83-0463 is intended to be a restatement and clarification
of existing law, and does not imply that creditable service
was previously allowed under this Article for time spent as
a volunteer firefighter.
(5) Time served between July 1, 1976 and July 1, 1988
in the position of protective inspection officer or
administrative assistant for fire services, for a
municipality with a population under 10,000 that is located
in a county with a population over 3,000,000 and that
maintains a firefighters' pension fund under this Article,
if the position included firefighting duties,
notwithstanding that the person may not have held an
appointment as a firefighter, provided that application is
made to the pension fund within 30 days after November 19,

SB3424 - 40 - LRB100 20450 MJP 35799 b
1991 (the effective date of Public Act 87-794) this
amendatory Act of 1991, and the corresponding
contributions are paid for the number of years of service
granted, based upon the salary and contribution rate in
effect for the firefighter at the date of entry into the
pension fund, as determined by the Board.
(6) Service before becoming a participant by a
firefighter initially excluded from participation by
reason of age who becomes a participant under the amendment
to Section 4-107 made by Public Act 87-1265 this amendatory
Act of 1993 and pays the required contributions for such
service.
(7) Up to 3 years of time during which the firefighter
receives a disability pension under Section 4-110,
4-110.1, or 4-111, provided that (i) the firefighter
returns to active service after the disability for a period
at least equal to the period for which credit is to be
established and (ii) the firefighter makes contributions
to the Fund fund based on the rates specified in Section
4-118.1 and the salary upon which the disability pension is
based. These contributions may be paid at any time prior to
the commencement of a retirement pension. The firefighter
may, but need not, elect to have the contributions deducted
from the disability pension or to pay them in installments
on a schedule approved by the board. If not deducted from
the disability pension, the contributions shall include

SB3424 - 41 - LRB100 20450 MJP 35799 b
interest at the rate of 6% per year, compounded annually,
from the date for which service credit is being established
to the date of payment. If contributions are paid under
this subdivision (c)(7) in excess of those needed to
establish the credit, the excess shall be refunded. This
subdivision (c)(7) applies to persons receiving a
disability pension under Section 4-110, 4-110.1, or 4-111
on the effective date of this amendatory Act of the 91st
General Assembly, as well as persons who begin to receive
such a disability pension after that date.
(8) Up to 6 years of service as a police officer and
participant in an Article 3 police pension fund
administered by the unit of local government that employs
the firefighter under this Article, provided that the
service has been transferred to, and the required payment
received by, the Article 4 fund in accordance with Section
3-110.12 of this Code.
(Source: P.A. 100-544, eff. 11-8-17.)
(40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
Sec. 4-118. Financing; tax.
(a) The governing body city council or the board of
trustees of a participating the municipality shall annually
levy a tax upon all the taxable property of the municipality at
the rate on the dollar which will produce an amount which, when
added to the deductions from the salaries or wages of

SB3424 - 42 - LRB100 20450 MJP 35799 b
firefighters and revenues available from other sources, will
equal a sum sufficient to meet the annual actuarial
requirements of the account of the participating municipality
pension fund, as determined by an enrolled actuary employed by
the Fund Illinois Department of Insurance or by an enrolled
actuary retained by the pension fund or municipality. For the
purposes of this Section, the annual actuarial requirements of
the account of the participating municipality pension fund are
equal to (1) the normal cost of benefits attributable to the
participating municipality and its firefighters, as determined
by an enrolled actuary employed by the Fund of the pension
fund, or 17.5% of the salaries and wages to be paid to
firefighters for the year involved, whichever is greater, plus
(2) an annual amount sufficient to bring the total assets of
the account of the participating municipality pension fund up
to 90% of the total actuarial liabilities of the account of the
participating municipality pension fund by the end of municipal
fiscal year 2040, as annually updated and determined by an
enrolled actuary employed by the Fund Illinois Department of
Insurance or by an enrolled actuary retained by the pension
fund or the municipality. In making these determinations, the
required minimum employer contribution shall be calculated
each year as a level percentage of payroll over the years
remaining up to and including fiscal year 2040 and shall be
determined under the projected unit credit actuarial cost
method. The amount to be applied towards the amortization of

SB3424 - 43 - LRB100 20450 MJP 35799 b
the unfunded accrued liability in any year shall not be less
than the annual amount required to amortize the unfunded
accrued liability, including interest, as a level percentage of
payroll over the number of years remaining in the 40 year
amortization period.
(a-5) For purposes of determining the required employer
contribution to the Fund a pension fund, the value of the
pension fund's assets of the account of the participating
municipality shall be equal to the actuarial value of the
pension fund's assets of the account of the participating
municipality, which shall be calculated as follows:
(1) (Blank). On March 30, 2011, the actuarial value of
a pension fund's assets shall be equal to the market value
of the assets as of that date.
(2) In determining the actuarial value of the pension
fund's assets of the account of the participating
municipality for fiscal years after March 30, 2011, any
actuarial gains or losses from investment return incurred
in a fiscal year shall be recognized in equal annual
amounts over the 5-year period following that fiscal year.
(b) The tax shall be levied and collected in the same
manner as the general taxes of the municipality, and shall be
in addition to all other taxes now or hereafter authorized to
be levied upon all property within the municipality, and in
addition to the amount authorized to be levied for general
purposes, under Section 8-3-1 of the Illinois Municipal Code or

SB3424 - 44 - LRB100 20450 MJP 35799 b
under Section 14 of the Fire Protection District Act. The tax
shall be forwarded directly to the treasurer of the Fund board
within 30 business days of receipt by the county (or, in the
case of amounts added to the tax levy under subsection (f),
used by the municipality to pay the employer contributions
required under subsection (b-1) of Section 15-155 of this
Code).
(b-5) If a participating municipality fails to transmit to
the Fund fund contributions required of it under this Article
for more than 90 days after the payment of those contributions
is due, the Fund fund may, after giving notice to the
municipality, certify to the State Comptroller the amounts of
the delinquent payments in accordance with any applicable rules
of the Comptroller, and the Comptroller must, beginning in
fiscal year 2016, deduct and remit to the Fund, for credit to
the account of the participating municipality, fund the
certified amounts or a portion of those amounts from the
following proportions of payments of State funds to the
municipality:
(1) in fiscal year 2016, one-third of the total amount
of any payments of State funds to the municipality;
(2) in fiscal year 2017, two-thirds of the total amount
of any payments of State funds to the municipality; and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any payments of State funds
to the municipality.

SB3424 - 45 - LRB100 20450 MJP 35799 b
The State Comptroller may not deduct from any payments of
State funds to the municipality more than the amount of
delinquent payments certified to the State Comptroller by the
Fund fund.
(c) The Board board shall make available to the membership
and the general public for inspection and copying at reasonable
times the most recent Actuarial Valuation Balance Sheet and Tax
Levy Requirement issued to the Fund fund by the Department of
Insurance.
(d) (Blank). The firefighters' pension fund shall consist
of the following moneys which shall be set apart by the
treasurer of the municipality: (1) all moneys derived from the
taxes levied hereunder; (2) contributions by firefighters as
provided under Section 4-118.1; (3) all rewards in money, fees,
gifts, and emoluments that may be paid or given for or on
account of extraordinary service by the fire department or any
member thereof, except when allowed to be retained by
competitive awards; and (4) any money, real estate or personal
property received by the board.
(e) (Blank). For the purposes of this Section, "enrolled
actuary" means an actuary: (1) who is a member of the Society
of Actuaries or the American Academy of Actuaries; and (2) who
is enrolled under Subtitle C of Title III of the Employee
Retirement Income Security Act of 1974, or who has been engaged
in providing actuarial services to one or more public
retirement systems for a period of at least 3 years as of July

SB3424 - 46 - LRB100 20450 MJP 35799 b
1, 1983.
(f) The corporate authorities of a municipality that
employs a person who is described in subdivision (d) of Section
4-106 may add to the tax levy otherwise provided for in this
Section an amount equal to the projected cost of the employer
contributions required to be paid by the municipality to the
State Universities Retirement System under subsection (b-1) of
Section 15-155 of this Code.
(g) (Blank). The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the General
Assembly on or before January 1, 2013. To the fullest extent
possible, the study shall include, but not be limited to, the
following:
(1) fund balances;
(2) historical employer contribution rates for each
fund;
(3) the actuarial formulas used as a basis for employer
contributions, including the actual assumed rate of return
for each year, for each fund;
(4) available contribution funding sources;
(5) the impact of any revenue limitations caused by
PTELL and employer home rule or non-home rule status; and
(6) existing statutory funding compliance procedures
and funding enforcement mechanisms for all municipal
pension funds.

SB3424 - 47 - LRB100 20450 MJP 35799 b
(Source: P.A. 99-8, eff. 7-9-15.)
(40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
Sec. 4-118.1. Contributions by firefighters.
(a) Beginning January 1, 1976 and until August 6, 1999 (the
effective date of Public Act 91-466) this amendatory Act of the
91st General Assembly, each firefighter shall contribute to the
pension fund 6 3/4% of salary towards the cost of his or her
pension. Beginning August 6, 1999 on the effective date of this
amendatory Act of the 91st General Assembly, each firefighter
shall contribute to the pension fund 6.955% of salary towards
the cost of his or her pension.
(b) In addition, beginning January 1, 1976, each
firefighter shall contribute 1% of salary toward the cost of
the increase in pension provided in Section 4-109.1; beginning
January 1, 1987, such contribution shall be 1.5% of salary;
beginning July 1, 2004, the contribution shall be 2.5% of
salary.
(c) Beginning on July 1, 2004 (the effective date of Public
Act 93-689) this amendatory Act of the 93rd General Assembly,
each firefighter who elects to receive a pension under Section
4-109.3 and who has participated in at least one other pension
fund under this Article for a period of at least one year shall
contribute an additional 1.0% of salary toward the cost of the
increase in pensions provided in Section 4-109.3; except that
beginning January 1, 2020, no additional contributions shall be

SB3424 - 48 - LRB100 20450 MJP 35799 b
paid under this subsection (c).
In the event that a firefighter does not elect to receive a
retirement pension provided under Section 4-109.3 from one or
more of the pension funds under this Article in which the
firefighter has credit, he or she shall, upon withdrawal from
the last pension fund as defined in Section 4-109.3, be
entitled to receive, from each such fund to which he or she has
paid additional contributions under this subsection (c) and
from which he or she does not receive a refund under Section
4-116, a refund of those contributions without interest.
Beginning January 1, 2020, however, such refunds shall be
payable from the Downstate Firefighters Pension Fund and
chargeable to the appropriate municipal accounts and reserves.
A refund of total contributions to a particular firefighter
pension fund under Section 4-116 shall include any refund of
additional contributions paid to that fund under this
subsection (c), but a firefighter who accepts a refund from a
pension fund under Section 4-116 is thereafter ineligible to
receive a pension provided under Section 4-109.3 from that
fund. A firefighter who meets the eligibility requirements of
Section 4-109.3 may receive a pension under Section 4-109.3
from any pension fund from which the firefighter has not
received a refund under Section 4-116 or under this subsection
(c); except that beginning January 1, 2020 (the consolidation
date), such pensions shall be payable from the Downstate
Firefighters Pension Fund as provided in Section 4-109.3 and

SB3424 - 49 - LRB100 20450 MJP 35799 b
chargeable to the appropriate municipal accounts and reserves.
(d) "Salary" means the annual salary, including longevity,
attached to the firefighter's rank, as established by the
municipality appropriation ordinance, including any
compensation for overtime which is included in the salary so
established, but excluding any "overtime pay", "holiday pay",
"bonus pay", "merit pay", or any other cash benefit not
included in the salary so established.
(e) The contributions shall be deducted and withheld from
the salary of firefighters.
(Source: P.A. 93-689, eff. 7-1-04.)
(40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)
Sec. 4-121. Board created.
(a) This subsection (a) applies until January 1, 2020.
There is created in each municipality or fire protection
district a board of trustees to be known as the "Board of
Trustees of the Firefighters' Pension Fund". The membership of
the board for each municipality shall be, respectively, as
follows: in cities, the treasurer, clerk, marshal, or chief
officer of the fire department, and the comptroller if there is
one, or if not, the mayor; in each township, village or
incorporated town, the president of the municipality's board of
trustees, the village or town clerk, village or town attorney,
village or town treasurer, and the chief officer of the fire
department; and in each fire protection district, the president

SB3424 - 50 - LRB100 20450 MJP 35799 b
and other 2 members of its board of trustees and the marshal or
chief of its fire department or service, as the case may be;
and in all the municipalities above designated 3 additional
persons chosen from their active firefighters and one other
person who has retired under the Firemen's Pension Fund Act of
1919, or this Article. The Notwithstanding any provision of
this Section to the contrary, the term of office of each member
of a board established on or before the 3rd Monday in April,
2006 shall terminate on the 3rd Monday in April, 2006, but all
incumbent members shall continue to exercise all of the powers
and be subject to all of the duties of a member of the board
until all the new members of the board take office.
Beginning on the 3rd Monday in April, 2006 and until
January 1, 2020, the board of trustees for each municipality or
fire protection district shall consist of 5 members. Two
members of the board shall be appointed by the mayor or
president of the board of trustees of the municipality or fire
protection district involved. Two members of the board shall be
active participants of the pension fund who are elected from
the active participants of the fund. One member of the board
shall be a person who is retired under the Firemen's Pension
Fund Act of 1919 or this Article who is elected from persons
retired under the Firemen's Pension Fund Act of 1919 or this
Article.
For the purposes of this Section, a firefighter receiving a
disability pension shall be considered a retired firefighter.

SB3424 - 51 - LRB100 20450 MJP 35799 b
In the event that there are no retired firefighters under the
Fund or if none is willing to serve on the board, then an
additional active firefighter shall be elected to the board in
lieu of the retired firefighter that would otherwise be
elected.
If the regularly constituted fire department of a
municipality is dissolved and Section 4-106.1 is not
applicable, the board shall continue to exist and administer
the Fund so long as there continues to be any annuitant or
deferred pensioner in the Fund. In such cases, elections shall
continue to be held as specified in this Section, except that:
(1) deferred pensioners shall be deemed to be active members
for the purposes of such elections; (2) any otherwise
unfillable positions on the board, including ex officio
positions, shall be filled by election from the remaining
firefighters and deferred pensioners of the Fund, to the extent
possible; and (3) if the membership of the board falls below 3
persons, the Illinois Director of Insurance or his designee
shall be deemed a member of the board, ex officio.
(b) The members of the boards of trustees serving on
December 31, 2019 may continue to exercise the powers of that
office until March 1, 2020 for the sole purpose of assisting in
the consolidation of their respective pension funds, but
subject to the supervision and requirements of the Transition
Board.
(c) Beginning January 1, 2020, and until the board

SB3424 - 52 - LRB100 20450 MJP 35799 b
established under subsection (d) has been elected and assumes
its duties, the Transition Board established under Section
4-101.1 shall operate as the Board of Trustees of the Fund.
(d) Beginning January 1, 2021, or as soon thereafter as it
is able to assume its duties, the Board of Trustees of the
Downstate Firefighters Pension Fund shall consist of 11
members. The Board shall consist of representatives of various
groups as follows:
(1) One trustee, appointed by the Governor, who shall
serve as the chairman and may vote only in the event of a
tie.
(2) Five trustees shall each be a mayor, chief elected
officer, chief executive officer, chief finance officer,
or other officer, executive, or department head of a
participating municipality, and each such trustee shall be
designated as an executive trustee.
(3) Three trustees shall each be a firefighter
participating in the Fund, and each such trustee shall be
designated as a firefighter trustee. No person shall be
eligible to become a firefighter trustee who does not have
at least 8 years of creditable service in the Fund.
(4) Two trustees shall be retired firefighters of the
Fund, who shall be designated the annuitant trustees. No
person shall be eligible to become an annuitant trustee who
does not have at least 8 years of creditable service in the
Fund. For the purposes of this Section and Section 4-121.2,

SB3424 - 53 - LRB100 20450 MJP 35799 b
a firefighter receiving a disability pension shall be
considered a retired firefighter.
Beginning January 1, 2020, elections for executive
trustees shall be conducted in accordance with Section 4-121.1
and elections for firefighter and annuitant trustees shall be
conducted in accordance with Section 4-121.2.
(e) The executive trustees shall elect one executive
trustee to serve as vice-chairman. The firefighter trustees and
annuitant trustees shall elect one firefighter trustee or
annuitant trustee to serve as vice-chairman.
(f) An executive or firefighter trustee shall be
disqualified immediately upon any change in status which
removes the trustee from the required employment or office
within the group he or she represents. The annuitant trustee
shall be disqualified upon termination or suspension of his or
her retirement or disability pension.
The Board shall fill any vacancy by appointment of a person
with the appropriate employment status for the period until the
next election of trustees, or, if the remaining term is less
than 2 years, for the remainder of the term, and until a
successor has been elected and has qualified.
The members chosen from the active and retired firefighters
shall be elected by ballot at elections to be held on the 3rd
Monday in April of the applicable years under the Australian
ballot system, at such place or places, in the municipality,
and under such regulations as shall be prescribed by the board.

SB3424 - 54 - LRB100 20450 MJP 35799 b
No person shall cast more than one vote for each candidate
for whom he or she is eligible to vote. In the elections for
board members to be chosen from the active firefighters, all
active firefighters and no others may vote. In the elections
for board members to be chosen from retired firefighters, the
retired firefighters and no others may vote.
Each member of the board so elected shall hold office for a
term of 3 years and until his or her successor has been duly
elected and qualified.
The board shall canvass the ballots and declare which
persons have been elected and for what term or terms
respectively. In case of a tie vote between 2 or more
candidates, the board shall determine by lot which candidate or
candidates have been elected and for what term or terms
respectively. In the event of the failure, resignation, or
inability to act of any board member, a successor shall be
elected for the unexpired term at a special election called by
the board and conducted in the same manner as a regular
election.
(g) The Board board shall elect annually from its members a
president and secretary.
(h) Board members shall not receive or have any right to
receive any salary from the Fund a pension fund for services
performed as Board board members, but shall be reimbursed for
any reasonable expenses incurred in attending meetings of the
Board and in performing duties on behalf of the Fund and for

SB3424 - 55 - LRB100 20450 MJP 35799 b
the amount of any earnings withheld by any employing
municipality because of attendance at any Board meeting.
(i) Except for the chairman, who may vote only in the event
of a tie, each trustee shall be entitled to one vote on any and
all actions before the Board. At least 6 concurring votes shall
be necessary for every decision or action by the Board at any
of its meetings. No decision or action shall become effective
unless presented and so approved at a regular or duly called
special meeting of the Board.
(Source: P.A. 100-201, eff. 8-18-17.)
(40 ILCS 5/4-121.1 new)
Sec. 4-121.1. Election of executive trustees.
(a) Beginning January 1, 2020, the election of executive
trustees shall be conducted in accordance with this Section.
(b) During the period beginning on August 1 and ending on
September 15 of each year, the Board shall accept nominations
of candidates for election as executive trustees for terms
beginning on the next January 1, and for vacancies to be filled
by election.
All nominations for the position of executive trustee shall
be by petition, signed by a representative of the governing
body of at least 5 participating municipalities.
(c) The election shall be by ballot and may be conducted in
person, by mail, or electronically, pursuant to the rules and
procedures established by the Board.

SB3424 - 56 - LRB100 20450 MJP 35799 b
All candidates properly nominated in petitions received by
the Board shall be placed in alphabetical order upon the proper
ballot. In the initial election, there shall be one election
for the 5 executive trusteeships, and the 5 candidates getting
the highest number of votes shall be declared elected.
(d) The governing body of each participating municipality
participating in the Fund shall have one vote at any election
in which an executive trustee is to be elected, and may cast
that vote for any candidate on the executive trustee ballot.
A vote may be cast for a person not on the ballot by
writing in his or her name.
In case of a tie vote, the candidate employed by the
municipality having the greatest number of participating
firefighters at the time of the election shall be declared
elected.
(e) The election shall be completed by December 1 of the
year. The results shall be entered in the minutes of the
meeting of the Board following the tally of votes.
(f) Each executive trustee so elected shall hold office for
a term of 4 years and until his or her successor has been duly
elected and qualified. However, for the initial executive
trustees, 2 of the initial executive trustees shall serve for a
term of one year, one initial executive trustee shall serve for
a term of 2 years, one initial executive trustee shall serve
for a term of 3 years, and one initial executive trustee shall
serve for a term of 4 years. The terms of the initial executive

SB3424 - 57 - LRB100 20450 MJP 35799 b
trustees shall be determined by lot at the first meeting of the
Board.
(40 ILCS 5/4-121.2 new)
Sec. 4-121.2. Election of firefighter and annuitant
trustees.
(a) Beginning January 1, 2020, the election of firefighter
and annuitant trustees shall be conducted in accordance with
this Section. The annuitant trustees shall be elected in an
election separate from the election for firefighter trustees.
(b) During the period beginning on August 1 and ending on
September 15 of each applicable year, the Board shall accept
nominations of candidates for election as firefighter or
annuitant trustees for terms beginning on the next January 1,
and for vacancies to be filled by election.
All nominations for the position of firefighter trustee
shall be by petition, signed by at least 50 active firefighters
participating in the Fund. All nominations for the position of
annuitant trustee shall be by petition, signed by at least 25
annuitants of the Fund.
(c) The election shall be by ballot and may be conducted in
person, by mail, or electronically, pursuant to the rules and
procedures established by the Board.
All candidates properly nominated in petitions received by
the Board shall be placed in alphabetical order on the proper
ballot. In the initial election, there shall be one election

SB3424 - 58 - LRB100 20450 MJP 35799 b
for the 3 firefighter trusteeships, and the 3 candidates
getting the highest number of votes shall be declared elected.
In the initial election there shall be one election for the 2
annuitant trusteeships, and the 2 candidates receiving the
highest number of votes shall be declared elected.
(d) No person shall cast more than one vote for each
candidate for whom he or she is eligible to vote. In elections
for board members to be chosen from the active firefighters,
all active firefighters and no others may vote. In elections
for board members to be chosen from retired firefighters, all
retired firefighters and no others may vote.
In case of a tie vote, the candidate currently (or in the
case of an annuitant trustee, formerly) employed by the
municipality having the greatest number of participating
firefighters at the time of the election shall be declared
elected.
(e) The election shall be completed by December 1 of the
year. The result shall be entered in the minutes of the meeting
of the Board following the tally of votes.
(f) Each trustee so elected shall hold office for a term of
4 years and until his or her successor has been duly elected
and qualified, except that the initial firefighter trustees
shall serve for terms of one, 2, or 3 years, as determined by
lot at the first meeting of the Board. The initial annuitant
trustees shall serve terms of 3 or 4 years, as determined by
lot at the first meeting of the Board.

SB3424 - 59 - LRB100 20450 MJP 35799 b
(40 ILCS 5/4-124) (from Ch. 108 1/2, par. 4-124)
Sec. 4-124. To enforce contributions. To assess each
firefighter the contributions required under Section 4-118.1.
The contributions deducted from salaries, together with all
interest accruing thereon, shall be paid promptly placed by the
treasurer of the municipality as ex officio treasurer of the
board, to the Treasurer credit of the Fund pension fund,
subject to the order of the Board board.
(Source: P.A. 83-1440.)
(40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
Sec. 4-128. To invest funds. To determine the limitations
on the amounts of cash to be invested in order to maintain such
cash balances as may be deemed advisable to meet current
annuity, benefit, and expense requirements, and to invest the
remaining available cash in securities, in accordance with the
prudent person investment rule and the other provisions of this
Article. Beginning on the consolidation date, the Article 1 and
1A restrictions on the investment of Article 4 Funds no longer
apply, to the extent that they do not also apply to Article 7
of this Code. Beginning January 1, 1998, the board shall invest
funds in accordance with Sections 1-113.1 through 1-113.10 of
this Code.
(Source: P.A. 90-507, eff. 8-22-97.)

SB3424 - 60 - LRB100 20450 MJP 35799 b
(40 ILCS 5/4-129.5 new)
Sec. 4-129.5. Custodian. The Board shall appoint one or
more custodians to receive and hold the assets of the Fund on
such terms as the Board may agree.
(40 ILCS 5/4-130.1 new)
Sec. 4-130.1. Deposit and disposition of funds; custodian.
(a) All money received by the Board shall immediately be
deposited with the custodian for the account of the Fund. All
payments from the accounts of the Fund shall be made by the
custodian only, and only by a check or draft signed by the
president of the board or the executive director, as the board
may direct. Such checks and drafts shall be drawn only upon
proper authorization by the board as properly recorded in the
official minute books of the meetings of the Board.
(b) The assets of the Pension Fund shall be invested as one
fund, and no particular person or municipality shall have any
right in any specific security or in any item of cash other
than an undivided interest in the whole.
(c) If a participating municipality terminates
participation because it fails to meet the requirements of
Section 4-103, it shall pay to the Fund the amount equal to any
net debit balance in its municipality account and any account
receivable. Its successors, assigns, and transferees of its
assets shall be obligated to make this payment to the extent of
the value of assets transferred to them. The Fund shall pay an

SB3424 - 61 - LRB100 20450 MJP 35799 b
amount equal to any net credit balance to the participating
municipality, its successors or assigns. Any remaining net
debit or credit balance not collectible or payable shall be
transferred to a terminated municipality reserve account. The
Fund shall pay to each firefighter of the participating
municipality an amount equal to his or her credits in the
employee reserves. The employees shall have no further rights
to any benefits from the Fund, except that annuities awarded
prior to the date of termination shall continue to be paid.
(40 ILCS 5/4-130.3 new)
Sec. 4-130.3. Authorizations.
(a) Each participating municipality shall:
(1) Deduct all normal and additional contributions
from each payment of earnings payable to each participating
employee who is entitled to any earnings from the
municipality, and remit all normal and additional
contributions immediately to the Board; and
(2) Pay to the Board contributions required by this
Article.
(b) Each participating employee shall, by virtue of the
payment of contributions to this Fund, receive a vested
interest in the annuities and benefits provided in this Article
and in consideration of such vested interest shall be deemed to
have agreed and authorized the deduction from earnings of all
contributions payable to this Fund in accordance with this

SB3424 - 62 - LRB100 20450 MJP 35799 b
Article.
(c) Payment of earnings less the amounts of contributions
provided in this Article shall be a full and complete discharge
of all claims for payment for services rendered by any employee
during the period covered by any such payment.
(40 ILCS 5/4-130.4 new)
Sec. 4-130.4. Executive director. The executive director
shall be in charge of the general administration of the Fund
and shall have such special powers and duties as may be
properly delegated or assigned by the Board from time to time.
Such general administrative duties shall include: the
computation of the amounts of annuities, benefits, prior
service credits, and contributions required for reinstatement
of credits for Board consideration; the processing of approved
benefit claims and expenses of administration for payment; the
placing of any and all matters before the Board which require
action or are in the interest of the Board or the Fund; the
preparation and maintenance of necessary and proper records for
administrative and actuarial purposes; the conduct of any
necessary or desirable communications in the course of
operations of the Fund; and the carrying out of any actions of
the Board which are so delegated.
(40 ILCS 5/4-130.5 new)
Sec. 4-130.5. Actuary.

SB3424 - 63 - LRB100 20450 MJP 35799 b
(a) The actuary shall be the technical advisor of the
Board. In addition to general advice, the actuary shall
specifically be responsible for and shall make a general
investigation, at least once every 3 years, of the experience
of the participating municipalities as to mortality,
disability, retirement, separation, marital status of
employees, marriage of surviving spouses, interest, and
employee earnings rates, and to make recommendations as a
result of any such investigation as to:
(1) the actuarial tables to be used for computing
annuities and benefits and for determining the premiums for
disability and death benefit purposes;
(2) the tables to be used in any regular actuarial
valuations; and
(3) the prescribed rate of interest.
(b) The actuary shall make the computations of municipality
obligations, contribution rates including annual valuations of
the liabilities and reserves for present and prospective
annuities and benefits, and certify to the correctness thereof.
(c) The actuary shall advise the Board on any matters of an
actuarial nature affecting the Fund.
(40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
Sec. 4-134. Report for tax levy.
(a) The Board board shall report to the governing body of
each participating city council or board of trustees of the

SB3424 - 64 - LRB100 20450 MJP 35799 b
municipality on the condition of the Fund pension fund at the
end of its most recently completed fiscal year. The report
shall be made prior to the council or board meeting held for
appropriating and levying taxes for the year for which the
report is made.
The pension board in the report shall certify and provide
the following information to the city council or board of
trustees of the municipality:
(1) the total assets of the fund and the their current
market value of those assets;
(2) the estimated receipts during the next succeeding
fiscal year from deductions from the salaries or wages of
firefighters, and from all other sources;
(3) the estimated amount necessary during the fiscal
year to meet the annual actuarial requirements of the
pension fund as provided in Sections 4-118 and 4-120;
(4) the total net income received from investment of
assets along with the assumed investment return and actual
investment return received by the Fund fund during its most
recently completed fiscal year compared to the total net
income, assumed investment return, and actual investment
return received during the preceding fiscal year;
(5) the increase in employer pension contributions
that results from the implementation of the provisions of
Public Act 93-689 this amendatory Act of the 93rd General
Assembly;

SB3424 - 65 - LRB100 20450 MJP 35799 b
(6) the total number of active employees who are
financially contributing to the fund;
(7) the total amount that was disbursed in benefits
during the fiscal year, including the number of and total
amount disbursed to (i) annuitants in receipt of a regular
retirement pension, (ii) recipients being paid a
disability pension, and (iii) survivors and children in
receipt of benefits;
(8) the funded ratio of the Fund fund; and
(9) the unfunded liability carried by the Fund fund,
along with an actuarial explanation of the unfunded
liability. ; and
(10) the investment policy of the pension board under
the statutory investment restrictions imposed on the fund.
Before the Board pension board makes its report, the Fund
municipality shall have the assets of the Fund fund and their
current market value verified by an independent certified
public accountant of its choice.
(b) A participating The municipality is authorized to
publish the report submitted under this Section. This
publication may be made, without limitation, by publication in
a local newspaper of general circulation in the municipality or
by publication on the municipality's Internet website. If the
municipality publishes the report, then that publication must
include all of the information relating to that municipality
submitted by the Board pension board under subsection (a).

SB3424 - 66 - LRB100 20450 MJP 35799 b
(Source: P.A. 95-950, eff. 8-29-08.)
Section 90. The State Mandates Act is amended by adding
Section 8.42 as follows:
(30 ILCS 805/8.42 new)
Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 100th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law, except that Sections 5 and 15 take effect January
1, 2020.
SB3424 - 67 - LRB100 20450 MJP 35799 b
INDEX
Statutes amended in order of appearance
35 ILCS 200/18-185
40 ILCS 5/4-101 from Ch. 108 1/2, par. 4-101
40 ILCS 5/4-101.1 new
40 ILCS 5/4-101.2 new
40 ILCS 5/7-199.5 new
40 ILCS 5/4-102.1 new
40 ILCS 5/4-103 from Ch. 108 1/2, par. 4-103
40 ILCS 5/4-104.5 new
40 ILCS 5/4-105 from Ch. 108 1/2, par. 4-105
40 ILCS 5/4-105c
40 ILCS 5/4-105d
40 ILCS 5/4-106.5 new
40 ILCS 5/4-108 from Ch. 108 1/2, par. 4-108
40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
40 ILCS 5/4-118.1 from Ch. 108 1/2, par. 4-118.1
40 ILCS 5/4-121 from Ch. 108 1/2, par. 4-121
40 ILCS 5/4-121.1 new
40 ILCS 5/4-121.2 new
40 ILCS 5/4-124 from Ch. 108 1/2, par. 4-124
40 ILCS 5/4-128 from Ch. 108 1/2, par. 4-128
40 ILCS 5/4-129.5 new
40 ILCS 5/4-130.1 new
40 ILCS 5/4-130.3 new
SB3424 - 68 - LRB100 20450 MJP 35799 b