Bill Text: IL SB3426 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Illinois Pension Code. Merges all Article 3 police officers' pension funds and Article 4 firefighters' pension funds into the Illinois Municipal Retirement Fund (IMRF) on January 1, 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 the transfer of assets and liabilities and for making recommendations to IMRF for an appropriate system of determining, administering, receiving, and enforcing the required municipal contributions to the fund. Makes conforming and other changes. Provides that a person first employed as a police officer or firefighter on or after January 1, 2020 shall participate and earn benefits in IMRF as an employee under the IMRF Article (rather than participating and earning benefits under the Downstate Police or Downstate Firefighter Articles). Amends the Property Tax Extension Limitation Law (PTELL) of the Property Tax Code to exclude from the definition of "aggregate extension" special purpose extensions made for contributions to IMRF for benefits under the Downstate Police and Downstate Firefighter Articles. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, except that certain changes to the Illinois Pension Code and PTELL of the Property Tax Code take effect January 1, 2020.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-09-30 - Chief Sponsor Changed to Sen. William E. Brady [SB3426 Detail]

Download: Illinois-2017-SB3426-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3426

Introduced 2/16/2018, by Sen. Pamela J. Althoff

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Pension Code. Merges all Article 3 police officers' pension funds and Article 4 firefighters' pension funds into the Illinois Municipal Retirement Fund (IMRF) on January 1, 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 the transfer of assets and liabilities and for making recommendations to IMRF for an appropriate system of determining, administering, receiving, and enforcing the required municipal contributions to the fund. Makes conforming and other changes. Provides that a person first employed as a police officer or firefighter on or after January 1, 2020 shall participate and earn benefits in IMRF as an employee under the IMRF Article (rather than participating and earning benefits under the Downstate Police or Downstate Firefighter Articles). Amends the Property Tax Extension Limitation Law (PTELL) of the Property Tax Code to exclude from the definition of "aggregate extension" special purpose extensions made for contributions to IMRF for benefits under the Downstate Police and Downstate Firefighter Articles. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately, except that certain changes to the Illinois Pension Code and PTELL of the Property Tax Code take effect January 1, 2020.
LRB100 20446 MJP 35795 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

SB3426LRB100 20446 MJP 35795 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5 may
8be cited as the Property Tax Extension Limitation Law. As used
9in this Division 5:
10 "Consumer Price Index" means the Consumer Price Index for
11All Urban Consumers for all items published by the United
12States Department of Labor.
13 "Extension limitation" means (a) the lesser of 5% or the
14percentage increase in the Consumer Price Index during the
1512-month calendar year preceding the levy year or (b) the rate
16of increase approved by voters under Section 18-205.
17 "Affected county" means a county of 3,000,000 or more
18inhabitants or a county contiguous to a county of 3,000,000 or
19more inhabitants.
20 "Taxing district" has the same meaning provided in Section
211-150, except as otherwise provided in this Section. For the
221991 through 1994 levy years only, "taxing district" includes
23only each non-home rule taxing district having the majority of

SB3426- 2 -LRB100 20446 MJP 35795 b
1its 1990 equalized assessed value within any county or counties
2contiguous to a county with 3,000,000 or more inhabitants.
3Beginning with the 1995 levy year, "taxing district" includes
4only each non-home rule taxing district subject to this Law
5before the 1995 levy year and each non-home rule taxing
6district not subject to this Law before the 1995 levy year
7having the majority of its 1994 equalized assessed value in an
8affected county or counties. Beginning with the levy year in
9which this Law becomes applicable to a taxing district as
10provided in Section 18-213, "taxing district" also includes
11those taxing districts made subject to this Law as provided in
12Section 18-213.
13 "Aggregate extension" for taxing districts to which this
14Law applied before the 1995 levy year means the annual
15corporate extension for the taxing district and those special
16purpose extensions that are made annually for the taxing
17district, excluding special purpose extensions: (a) made for
18the taxing district to pay interest or principal on general
19obligation bonds that were approved by referendum; (b) made for
20any taxing district to pay interest or principal on general
21obligation bonds issued before October 1, 1991; (c) made for
22any taxing district to pay interest or principal on bonds
23issued to refund or continue to refund those bonds issued
24before October 1, 1991; (d) made for any taxing district to pay
25interest or principal on bonds issued to refund or continue to
26refund bonds issued after October 1, 1991 that were approved by

SB3426- 3 -LRB100 20446 MJP 35795 b
1referendum; (e) made for any taxing district to pay interest or
2principal on revenue bonds issued before October 1, 1991 for
3payment of which a property tax levy or the full faith and
4credit of the unit of local government is pledged; however, a
5tax for the payment of interest or principal on those bonds
6shall be made only after the governing body of the unit of
7local government finds that all other sources for payment are
8insufficient to make those payments; (f) made for payments
9under a building commission lease when the lease payments are
10for the retirement of bonds issued by the commission before
11October 1, 1991, to pay for the building project; (g) made for
12payments due under installment contracts entered into before
13October 1, 1991; (h) made for payments of principal and
14interest on bonds issued under the Metropolitan Water
15Reclamation District Act to finance construction projects
16initiated before October 1, 1991; (i) made for payments of
17principal and interest on limited bonds, as defined in Section
183 of the Local Government Debt Reform Act, in an amount not to
19exceed the debt service extension base less the amount in items
20(b), (c), (e), and (h) of this definition for non-referendum
21obligations, except obligations initially issued pursuant to
22referendum; (j) made for payments of principal and interest on
23bonds issued under Section 15 of the Local Government Debt
24Reform Act; (k) made by a school district that participates in
25the Special Education District of Lake County, created by
26special education joint agreement under Section 10-22.31 of the

SB3426- 4 -LRB100 20446 MJP 35795 b
1School Code, for payment of the school district's share of the
2amounts required to be contributed by the Special Education
3District of Lake County to the Illinois Municipal Retirement
4Fund under Article 7 of the Illinois Pension Code; the amount
5of any extension under this item (k) shall be certified by the
6school district to the county clerk; (l) made to fund expenses
7of providing joint recreational programs for persons with
8disabilities under Section 5-8 of the Park District Code or
9Section 11-95-14 of the Illinois Municipal Code; (m) made for
10temporary relocation loan repayment purposes pursuant to
11Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
12payment of principal and interest on any bonds issued under the
13authority of Section 17-2.2d of the School Code; (o) made
14before January 1, 2020 for contributions to a firefighter's
15pension fund created under Article 4 of the Illinois Pension
16Code, to the extent of the amount certified under item (5) of
17Section 4-134 of the Illinois Pension Code; and (p) made for
18road purposes in the first year after a township assumes the
19rights, powers, duties, assets, property, liabilities,
20obligations, and responsibilities of a road district abolished
21under the provisions of Section 6-133 of the Illinois Highway
22Code; and (q) made under Articles 3 and 4 of the Illinois
23Pension Code for contributions to the Illinois Municipal
24Retirement Fund.
25 "Aggregate extension" for the taxing districts to which
26this Law did not apply before the 1995 levy year (except taxing

SB3426- 5 -LRB100 20446 MJP 35795 b
1districts subject to this Law in accordance with Section
218-213) means the annual corporate extension for the taxing
3district and those special purpose extensions that are made
4annually for the taxing district, excluding special purpose
5extensions: (a) made for the taxing district to pay interest or
6principal on general obligation bonds that were approved by
7referendum; (b) made for any taxing district to pay interest or
8principal on general obligation bonds issued before March 1,
91995; (c) made for any taxing district to pay interest or
10principal on bonds issued to refund or continue to refund those
11bonds issued before March 1, 1995; (d) made for any taxing
12district to pay interest or principal on bonds issued to refund
13or continue to refund bonds issued after March 1, 1995 that
14were approved by referendum; (e) made for any taxing district
15to pay interest or principal on revenue bonds issued before
16March 1, 1995 for payment of which a property tax levy or the
17full faith and credit of the unit of local government is
18pledged; however, a tax for the payment of interest or
19principal on those bonds shall be made only after the governing
20body of the unit of local government finds that all other
21sources for payment are insufficient to make those payments;
22(f) made for payments under a building commission lease when
23the lease payments are for the retirement of bonds issued by
24the commission before March 1, 1995 to pay for the building
25project; (g) made for payments due under installment contracts
26entered into before March 1, 1995; (h) made for payments of

SB3426- 6 -LRB100 20446 MJP 35795 b
1principal and interest on bonds issued under the Metropolitan
2Water Reclamation District Act to finance construction
3projects initiated before October 1, 1991; (h-4) made for
4stormwater management purposes by the Metropolitan Water
5Reclamation District of Greater Chicago under Section 12 of the
6Metropolitan Water Reclamation District Act; (i) made for
7payments of principal and interest on limited bonds, as defined
8in Section 3 of the Local Government Debt Reform Act, in an
9amount not to exceed the debt service extension base less the
10amount in items (b), (c), and (e) of this definition for
11non-referendum obligations, except obligations initially
12issued pursuant to referendum and bonds described in subsection
13(h) of this definition; (j) made for payments of principal and
14interest on bonds issued under Section 15 of the Local
15Government Debt Reform Act; (k) made for payments of principal
16and interest on bonds authorized by Public Act 88-503 and
17issued under Section 20a of the Chicago Park District Act for
18aquarium or museum projects; (l) made for payments of principal
19and interest on bonds authorized by Public Act 87-1191 or
2093-601 and (i) issued pursuant to Section 21.2 of the Cook
21County Forest Preserve District Act, (ii) issued under Section
2242 of the Cook County Forest Preserve District Act for
23zoological park projects, or (iii) issued under Section 44.1 of
24the Cook County Forest Preserve District Act for botanical
25gardens projects; (m) made pursuant to Section 34-53.5 of the
26School Code, whether levied annually or not; (n) made to fund

SB3426- 7 -LRB100 20446 MJP 35795 b
1expenses of providing joint recreational programs for persons
2with disabilities under Section 5-8 of the Park District Code
3or Section 11-95-14 of the Illinois Municipal Code; (o) made by
4the Chicago Park District for recreational programs for persons
5with disabilities under subsection (c) of Section 7.06 of the
6Chicago Park District Act; (p) made before January 1, 2020 for
7contributions to a firefighter's pension fund created under
8Article 4 of the Illinois Pension Code, to the extent of the
9amount certified under item (5) of Section 4-134 of the
10Illinois Pension Code; (q) made by Ford Heights School District
11169 under Section 17-9.02 of the School Code; and (r) made for
12the purpose of making employer contributions to the Public
13School Teachers' Pension and Retirement Fund of Chicago under
14Section 34-53 of the School Code; and (s) made under Articles 3
15and 4 of the Illinois Pension Code for contributions to the
16Illinois Municipal Retirement Fund.
17 "Aggregate extension" for all taxing districts to which
18this Law applies in accordance with Section 18-213, except for
19those taxing districts subject to paragraph (2) of subsection
20(e) of Section 18-213, means the annual corporate extension for
21the taxing district and those special purpose extensions that
22are made annually for the taxing district, excluding special
23purpose extensions: (a) made for the taxing district to pay
24interest or principal on general obligation bonds that were
25approved by referendum; (b) made for any taxing district to pay
26interest or principal on general obligation bonds issued before

SB3426- 8 -LRB100 20446 MJP 35795 b
1the date on which the referendum making this Law applicable to
2the taxing district is held; (c) made for any taxing district
3to pay interest or principal on bonds issued to refund or
4continue to refund those bonds issued before the date on which
5the referendum making this Law applicable to the taxing
6district is held; (d) made for any taxing district to pay
7interest or principal on bonds issued to refund or continue to
8refund bonds issued after the date on which the referendum
9making this Law applicable to the taxing district is held if
10the bonds were approved by referendum after the date on which
11the referendum making this Law applicable to the taxing
12district is held; (e) made for any taxing district to pay
13interest or principal on revenue bonds issued before the date
14on which the referendum making this Law applicable to the
15taxing district is held for payment of which a property tax
16levy or the full faith and credit of the unit of local
17government is pledged; however, a tax for the payment of
18interest or principal on those bonds shall be made only after
19the governing body of the unit of local government finds that
20all other sources for payment are insufficient to make those
21payments; (f) made for payments under a building commission
22lease when the lease payments are for the retirement of bonds
23issued by the commission before the date on which the
24referendum making this Law applicable to the taxing district is
25held to pay for the building project; (g) made for payments due
26under installment contracts entered into before the date on

SB3426- 9 -LRB100 20446 MJP 35795 b
1which the referendum making this Law applicable to the taxing
2district is held; (h) made for payments of principal and
3interest on limited bonds, as defined in Section 3 of the Local
4Government Debt Reform Act, in an amount not to exceed the debt
5service extension base less the amount in items (b), (c), and
6(e) of this definition for non-referendum obligations, except
7obligations initially issued pursuant to referendum; (i) made
8for payments of principal and interest on bonds issued under
9Section 15 of the Local Government Debt Reform Act; (j) made
10for a qualified airport authority to pay interest or principal
11on general obligation bonds issued for the purpose of paying
12obligations due under, or financing airport facilities
13required to be acquired, constructed, installed or equipped
14pursuant to, contracts entered into before March 1, 1996 (but
15not including any amendments to such a contract taking effect
16on or after that date); (k) made to fund expenses of providing
17joint recreational programs for persons with disabilities
18under Section 5-8 of the Park District Code or Section 11-95-14
19of the Illinois Municipal Code; (l) made before January 1, 2020
20for contributions to a firefighter's pension fund created under
21Article 4 of the Illinois Pension Code, to the extent of the
22amount certified under item (5) of Section 4-134 of the
23Illinois Pension Code; and (m) made for the taxing district to
24pay interest or principal on general obligation bonds issued
25pursuant to Section 19-3.10 of the School Code; and (n) made
26under Articles 3 and 4 of the Illinois Pension Code for

SB3426- 10 -LRB100 20446 MJP 35795 b
1contributions to the Illinois Municipal Retirement Fund.
2 "Aggregate extension" for all taxing districts to which
3this Law applies in accordance with paragraph (2) of subsection
4(e) of Section 18-213 means the annual corporate extension for
5the taxing district and those special purpose extensions that
6are made annually for the taxing district, excluding special
7purpose extensions: (a) made for the taxing district to pay
8interest or principal on general obligation bonds that were
9approved by referendum; (b) made for any taxing district to pay
10interest or principal on general obligation bonds issued before
11the effective date of this amendatory Act of 1997; (c) made for
12any taxing district to pay interest or principal on bonds
13issued to refund or continue to refund those bonds issued
14before the effective date of this amendatory Act of 1997; (d)
15made for any taxing district to pay interest or principal on
16bonds issued to refund or continue to refund bonds issued after
17the effective date of this amendatory Act of 1997 if the bonds
18were approved by referendum after the effective date of this
19amendatory Act of 1997; (e) made for any taxing district to pay
20interest or principal on revenue bonds issued before the
21effective date of this amendatory Act of 1997 for payment of
22which a property tax levy or the full faith and credit of the
23unit of local government is pledged; however, a tax for the
24payment of interest or principal on those bonds shall be made
25only after the governing body of the unit of local government
26finds that all other sources for payment are insufficient to

SB3426- 11 -LRB100 20446 MJP 35795 b
1make those payments; (f) made for payments under a building
2commission lease when the lease payments are for the retirement
3of bonds issued by the commission before the effective date of
4this amendatory Act of 1997 to pay for the building project;
5(g) made for payments due under installment contracts entered
6into before the effective date of this amendatory Act of 1997;
7(h) made for payments of principal and interest on limited
8bonds, as defined in Section 3 of the Local Government Debt
9Reform Act, in an amount not to exceed the debt service
10extension base less the amount in items (b), (c), and (e) of
11this definition for non-referendum obligations, except
12obligations initially issued pursuant to referendum; (i) made
13for payments of principal and interest on bonds issued under
14Section 15 of the Local Government Debt Reform Act; (j) made
15for a qualified airport authority to pay interest or principal
16on general obligation bonds issued for the purpose of paying
17obligations due under, or financing airport facilities
18required to be acquired, constructed, installed or equipped
19pursuant to, contracts entered into before March 1, 1996 (but
20not including any amendments to such a contract taking effect
21on or after that date); (k) made to fund expenses of providing
22joint recreational programs for persons with disabilities
23under Section 5-8 of the Park District Code or Section 11-95-14
24of the Illinois Municipal Code; and (l) made before January 1,
252020 for contributions to a firefighter's pension fund created
26under Article 4 of the Illinois Pension Code, to the extent of

SB3426- 12 -LRB100 20446 MJP 35795 b
1the amount certified under item (5) of Section 4-134 of the
2Illinois Pension Code; and (m) made under Articles 3 and 4 of
3the Illinois Pension Code for contributions to the Illinois
4Municipal Retirement Fund.
5 "Debt service extension base" means an amount equal to that
6portion of the extension for a taxing district for the 1994
7levy year, or for those taxing districts subject to this Law in
8accordance with Section 18-213, except for those subject to
9paragraph (2) of subsection (e) of Section 18-213, for the levy
10year in which the referendum making this Law applicable to the
11taxing district is held, or for those taxing districts subject
12to this Law in accordance with paragraph (2) of subsection (e)
13of Section 18-213 for the 1996 levy year, constituting an
14extension for payment of principal and interest on bonds issued
15by the taxing district without referendum, but not including
16excluded non-referendum bonds. For park districts (i) that were
17first subject to this Law in 1991 or 1995 and (ii) whose
18extension for the 1994 levy year for the payment of principal
19and interest on bonds issued by the park district without
20referendum (but not including excluded non-referendum bonds)
21was less than 51% of the amount for the 1991 levy year
22constituting an extension for payment of principal and interest
23on bonds issued by the park district without referendum (but
24not including excluded non-referendum bonds), "debt service
25extension base" means an amount equal to that portion of the
26extension for the 1991 levy year constituting an extension for

SB3426- 13 -LRB100 20446 MJP 35795 b
1payment of principal and interest on bonds issued by the park
2district without referendum (but not including excluded
3non-referendum bonds). A debt service extension base
4established or increased at any time pursuant to any provision
5of this Law, except Section 18-212, shall be increased each
6year commencing with the later of (i) the 2009 levy year or
7(ii) the first levy year in which this Law becomes applicable
8to the taxing district, by the lesser of 5% or the percentage
9increase in the Consumer Price Index during the 12-month
10calendar year preceding the levy year. The debt service
11extension base may be established or increased as provided
12under Section 18-212. "Excluded non-referendum bonds" means
13(i) bonds authorized by Public Act 88-503 and issued under
14Section 20a of the Chicago Park District Act for aquarium and
15museum projects; (ii) bonds issued under Section 15 of the
16Local Government Debt Reform Act; or (iii) refunding
17obligations issued to refund or to continue to refund
18obligations initially issued pursuant to referendum.
19 "Special purpose extensions" include, but are not limited
20to, extensions for levies made on an annual basis for
21unemployment and workers' compensation, self-insurance,
22contributions to pension plans, and extensions made pursuant to
23Section 6-601 of the Illinois Highway Code for a road
24district's permanent road fund whether levied annually or not.
25The extension for a special service area is not included in the
26aggregate extension.

SB3426- 14 -LRB100 20446 MJP 35795 b
1 "Aggregate extension base" means the taxing district's
2last preceding aggregate extension as adjusted under Sections
318-135, 18-215, 18-230, and 18-206. An adjustment under Section
418-135 shall be made for the 2007 levy year and all subsequent
5levy years whenever one or more counties within which a taxing
6district is located (i) used estimated valuations or rates when
7extending taxes in the taxing district for the last preceding
8levy year that resulted in the over or under extension of
9taxes, or (ii) increased or decreased the tax extension for the
10last preceding levy year as required by Section 18-135(c).
11Whenever an adjustment is required under Section 18-135, the
12aggregate extension base of the taxing district shall be equal
13to the amount that the aggregate extension of the taxing
14district would have been for the last preceding levy year if
15either or both (i) actual, rather than estimated, valuations or
16rates had been used to calculate the extension of taxes for the
17last levy year, or (ii) the tax extension for the last
18preceding levy year had not been adjusted as required by
19subsection (c) of Section 18-135.
20 Notwithstanding any other provision of law, for levy year
212012, the aggregate extension base for West Northfield School
22District No. 31 in Cook County shall be $12,654,592.
23 "Levy year" has the same meaning as "year" under Section
241-155.
25 "New property" means (i) the assessed value, after final
26board of review or board of appeals action, of new improvements

SB3426- 15 -LRB100 20446 MJP 35795 b
1or additions to existing improvements on any parcel of real
2property that increase the assessed value of that real property
3during the levy year multiplied by the equalization factor
4issued by the Department under Section 17-30, (ii) the assessed
5value, after final board of review or board of appeals action,
6of real property not exempt from real estate taxation, which
7real property was exempt from real estate taxation for any
8portion of the immediately preceding levy year, multiplied by
9the equalization factor issued by the Department under Section
1017-30, including the assessed value, upon final stabilization
11of occupancy after new construction is complete, of any real
12property located within the boundaries of an otherwise or
13previously exempt military reservation that is intended for
14residential use and owned by or leased to a private corporation
15or other entity, (iii) in counties that classify in accordance
16with Section 4 of Article IX of the Illinois Constitution, an
17incentive property's additional assessed value resulting from
18a scheduled increase in the level of assessment as applied to
19the first year final board of review market value, and (iv) any
20increase in assessed value due to oil or gas production from an
21oil or gas well required to be permitted under the Hydraulic
22Fracturing Regulatory Act that was not produced in or accounted
23for during the previous levy year. In addition, the county
24clerk in a county containing a population of 3,000,000 or more
25shall include in the 1997 recovered tax increment value for any
26school district, any recovered tax increment value that was

SB3426- 16 -LRB100 20446 MJP 35795 b
1applicable to the 1995 tax year calculations.
2 "Qualified airport authority" means an airport authority
3organized under the Airport Authorities Act and located in a
4county bordering on the State of Wisconsin and having a
5population in excess of 200,000 and not greater than 500,000.
6 "Recovered tax increment value" means, except as otherwise
7provided in this paragraph, the amount of the current year's
8equalized assessed value, in the first year after a
9municipality terminates the designation of an area as a
10redevelopment project area previously established under the
11Tax Increment Allocation Development Act in the Illinois
12Municipal Code, previously established under the Industrial
13Jobs Recovery Law in the Illinois Municipal Code, previously
14established under the Economic Development Project Area Tax
15Increment Act of 1995, or previously established under the
16Economic Development Area Tax Increment Allocation Act, of each
17taxable lot, block, tract, or parcel of real property in the
18redevelopment project area over and above the initial equalized
19assessed value of each property in the redevelopment project
20area. For the taxes which are extended for the 1997 levy year,
21the recovered tax increment value for a non-home rule taxing
22district that first became subject to this Law for the 1995
23levy year because a majority of its 1994 equalized assessed
24value was in an affected county or counties shall be increased
25if a municipality terminated the designation of an area in 1993
26as a redevelopment project area previously established under

SB3426- 17 -LRB100 20446 MJP 35795 b
1the Tax Increment Allocation Development Act in the Illinois
2Municipal Code, previously established under the Industrial
3Jobs Recovery Law in the Illinois Municipal Code, or previously
4established under the Economic Development Area Tax Increment
5Allocation Act, by an amount equal to the 1994 equalized
6assessed value of each taxable lot, block, tract, or parcel of
7real property in the redevelopment project area over and above
8the initial equalized assessed value of each property in the
9redevelopment project area. In the first year after a
10municipality removes a taxable lot, block, tract, or parcel of
11real property from a redevelopment project area established
12under the Tax Increment Allocation Development Act in the
13Illinois Municipal Code, the Industrial Jobs Recovery Law in
14the Illinois Municipal Code, or the Economic Development Area
15Tax Increment Allocation Act, "recovered tax increment value"
16means the amount of the current year's equalized assessed value
17of each taxable lot, block, tract, or parcel of real property
18removed from the redevelopment project area over and above the
19initial equalized assessed value of that real property before
20removal from the redevelopment project area.
21 Except as otherwise provided in this Section, "limiting
22rate" means a fraction the numerator of which is the last
23preceding aggregate extension base times an amount equal to one
24plus the extension limitation defined in this Section and the
25denominator of which is the current year's equalized assessed
26value of all real property in the territory under the

SB3426- 18 -LRB100 20446 MJP 35795 b
1jurisdiction of the taxing district during the prior levy year.
2For those taxing districts that reduced their aggregate
3extension for the last preceding levy year, except for school
4districts that reduced their extension for educational
5purposes pursuant to Section 18-206, the highest aggregate
6extension in any of the last 3 preceding levy years shall be
7used for the purpose of computing the limiting rate. The
8denominator shall not include new property or the recovered tax
9increment value. If a new rate, a rate decrease, or a limiting
10rate increase has been approved at an election held after March
1121, 2006, then (i) the otherwise applicable limiting rate shall
12be increased by the amount of the new rate or shall be reduced
13by the amount of the rate decrease, as the case may be, or (ii)
14in the case of a limiting rate increase, the limiting rate
15shall be equal to the rate set forth in the proposition
16approved by the voters for each of the years specified in the
17proposition, after which the limiting rate of the taxing
18district shall be calculated as otherwise provided. In the case
19of a taxing district that obtained referendum approval for an
20increased limiting rate on March 20, 2012, the limiting rate
21for tax year 2012 shall be the rate that generates the
22approximate total amount of taxes extendable for that tax year,
23as set forth in the proposition approved by the voters; this
24rate shall be the final rate applied by the county clerk for
25the aggregate of all capped funds of the district for tax year
262012.

SB3426- 19 -LRB100 20446 MJP 35795 b
1(Source: P.A. 99-143, eff. 7-27-15; 99-521, eff. 6-1-17;
2100-465, eff. 8-31-17.)
3 Section 10. The Illinois Pension Code is amended by
4changing Sections 3-101, 3-106, 4-101, 4-106, and 7-109 and by
5adding Sections 3-101.1, 3-101.2, 4-101.1, 4-101.2, 7-199.5,
6and 7-199.6 as follows:
7 (40 ILCS 5/3-101) (from Ch. 108 1/2, par. 3-101)
8 Sec. 3-101. Creation and consolidation of the funds fund.
9 (a) Until January 1, 2020, in In each municipality, as
10defined in Section 3-103, the city council or the board of
11trustees, as the case may be, shall establish and administer a
12police pension fund, as prescribed in this Article, for the
13benefit of its police officers and of their surviving spouses,
14children, and certain other dependents. The duty of the
15corporate authorities of a municipality to establish and
16administer a police pension fund shall be suspended during any
17period during which the fund is dissolved under Section 3-144.6
18of this Code.
19 (b) On January 1, 2020, all of the individual police
20pension funds then existing under this Article are merged and
21consolidated into the Illinois Municipal Retirement Fund,
22which shall be administered as prescribed in this Article and
23Article 7.
24 (c) Beginning January 1, 2020, each municipality, as

SB3426- 20 -LRB100 20446 MJP 35795 b
1defined in Section 3-103, shall participate in the Illinois
2Municipal Retirement Fund for the benefit of its police
3officers and of their surviving spouses, children, and certain
4other dependents.
5 (d) It is the purpose of this consolidation to provide the
6advantages of (i) centralized custody and investment of pension
7fund assets, (ii) consistent interpretation and application of
8this Article in accordance with a single set of rules and
9procedures adopted by the Illinois Municipal Retirement Fund,
10and (iii) securing the future funding of pension benefits
11through an independent determination of each municipality's
12required annual contribution rate.
13(Source: P.A. 97-99, eff. 1-1-12.)
14 (40 ILCS 5/3-101.1 new)
15 Sec. 3-101.1. Transition Board.
16 (a) There is hereby created a Downstate Police Pension Fund
17Transition Board, which may be referred to as the "Transition
18Board". The Transition Board shall consist of 11 members as
19follows:
20 (1) The Director of the Illinois Department of
21 Insurance, or his or her designee.
22 (2) Two persons with experience in managing or
23 administering an Illinois public employee pension fund or
24 retirement system, appointed by the Governor.
25 (3) One person with experience in providing actuarial

SB3426- 21 -LRB100 20446 MJP 35795 b
1 services to an Illinois public employee pension fund or
2 retirement system, appointed by the Governor.
3 (4) One person with experience in auditing Illinois
4 public employee pension funds or retirement systems,
5 appointed by the Auditor General.
6 (5) Two members of the labor organization representing
7 the largest number of police officers participating in
8 Article 3 pension funds, with one member being an active
9 participant and the other being a retired participant,
10 appointed by the Governor from recommendations of the
11 President of that organization.
12 (6) Two persons who are mayors or chief elected
13 officers of municipalities that maintain an Article 3
14 pension fund, appointed by the Governor from
15 recommendations of the Executive Director of the
16 organization representing the largest number of
17 municipalities in the State.
18 (7) One person familiar with the operation and
19 administration of the Illinois Municipal Retirement Fund,
20 appointed by the Executive Director of that Fund.
21 (8) One person familiar with the investment authority
22 and practices of the Illinois State Board of Investment,
23 appointed by the Executive Director of the Illinois State
24 Board of Investment.
25 All such appointments and designations shall be made by
26filing a written notice thereof with the Secretary of State no

SB3426- 22 -LRB100 20446 MJP 35795 b
1later than 30 days after the effective date of this amendatory
2Act of the 100th General Assembly.
3 (b) The Transition Board shall be responsible for planning,
4overseeing, and administering the consolidation and merger of
5all existing Article 3 pension funds into the Illinois
6Municipal Retirement Fund.
7 Members of the Transition Board shall act at all times in a
8manner appropriate for fiduciaries of the Fund and fiduciaries
9of the pension funds being consolidated.
10 The Transition Board's powers and duties include, but are
11not limited to, the following:
12 (1) Providing for the preservation and consolidation
13 of membership, beneficiary, financial, and other records
14 relating to the Article 3 pension funds to be merged.
15 (2) Obtaining all necessary Internal Revenue Service
16 and any other necessary approval or review.
17 (3) Providing for the final auditing of existing
18 Article 3 pension funds, including a final accounting of
19 their respective assets and liabilities, paid for by the
20 applicable pension fund.
21 (4) Providing for the custody and transfer of the
22 assets and liabilities of the existing Article 3 pension
23 funds to the Illinois Municipal Retirement Fund, on a
24 schedule to be determined by the Transition Board.
25 (5) Recommending to the Illinois Municipal Retirement
26 Fund an appropriate system of accounting for the assets and

SB3426- 23 -LRB100 20446 MJP 35795 b
1 liabilities attributable to the existing Article 3 pension
2 funds and for establishing separate reserves and accounts
3 for each municipality participating in the Fund with
4 respect to its police officers.
5 (6) Recommending to the Illinois Municipal Retirement
6 Fund an appropriate system of determining, administering,
7 receiving, and enforcing the required municipal
8 contributions to the Fund. The municipal contribution rate
9 shall be determined separately for each municipality on an
10 annual basis in accordance with the requirements of this
11 Article, based on the municipality's separate reserves and
12 accounts within the Illinois Municipal Retirement Fund.
13 The Transition Board shall endeavor to determine the
14 required municipal contributions to the Illinois Municipal
15 Retirement Fund with regard to the municipality's police
16 officers under this Article and to notify and provide
17 reasonable guidance to municipalities in a manner that
18 ensures uninterrupted contributions during the transition
19 period.
20 (7) Ensuring the uninterrupted payment and
21 administration of benefits.
22 (8) Adopting any rules or procedures necessary for the
23 efficient consolidation of the existing Article 3 pension
24 funds.
25 (9) Considering the consequences of the consolidation
26 on any QILDROs filed with the pension funds being

SB3426- 24 -LRB100 20446 MJP 35795 b
1 consolidated and giving appropriate notice and advice to
2 persons who may be affected by those QILDROs concerning the
3 possible effects of consolidation.
4 (10) Making recommendations to the Governor and the
5 General Assembly with respect to legislation necessary or
6 useful for the implementation of this consolidation or for
7 the successful administration of the Illinois Municipal
8 Retirement Fund with respect to police officers under this
9 Article.
10 (11) Consulting with the Illinois Municipal Retirement
11 Fund about the Illinois Municipal Retirement Fund's
12 policies, practices, rules, and structure.
13 (c) The Public Pension Division of the Department of
14Insurance shall provide all reasonably necessary and available
15temporary office space, technical and clerical support, and
16monetary or other assistance at the request of the Transition
17Board.
18 For the purpose of implementing the consolidation, the
19Transition Board may direct the Public Pension Division to
20accelerate, expand, or enhance its examination under Section
211A-104 of all or specific Article 3 pension funds, or to
22conduct a particular study or investigation thereof. The
23expenses of such examinations and investigations, to the extent
24not paid by the Division, shall be charged to the applicable
25pension fund.
26 (d) In preparation for the consolidation of the pension

SB3426- 25 -LRB100 20446 MJP 35795 b
1funds into the Illinois Municipal Retirement Fund on January 1,
22020, the Transition Board is authorized to expend or obligate
3the assets of the Illinois Municipal Retirement Fund for any of
4the reasonable expenses of consolidating the pension funds into
5the Illinois Municipal Retirement Fund, including the payment
6of benefits during the consolidation period and reasonable
7administrative expenses. As used in this Section, "reasonable
8administrative expenses" includes, but is not limited to, the
9cost of hiring personnel and obtaining professional services to
10the extent necessary for the consolidation, the cost of
11insurance, and the cost of indemnifying members of the
12Transition Board and its employees, advisors, and agents.
13 (e) Members of the Transition Board, other than State
14officials and employees, may be compensated for their service,
15and all members may be reimbursed for their reasonable expenses
16out of any moneys available for that purpose.
17 (f) Sixty days after the Board of Trustees of the Illinois
18Municipal Retirement Fund assumes its duties, the Transition
19Board is abolished.
20 (40 ILCS 5/3-101.2 new)
21 Sec. 3-101.2. Consolidation of pension funds into the
22Illinois Municipal Retirement Fund.
23 (a) On January 1, 2020, all of the individual police
24pension funds then existing under this Article are merged and
25consolidated into the Illinois Municipal Retirement Fund,

SB3426- 26 -LRB100 20446 MJP 35795 b
1which shall be administered as prescribed in this Article and
2Article 7.
3 In preparation for that consolidation, all pension funds
4established under this Article, and the municipalities that
5established them, shall cooperate with the Transition Board.
6 (b) The Illinois Municipal Retirement Fund shall be the
7legal successor to each of the pension funds that are
8consolidated within it, and it may exercise any of the rights
9and powers and perform any of the duties of those pension
10funds.
11 At the time of consolidation, or as otherwise directed by
12the Transition Board, all assets and liabilities belonging to
13or arising from the trust of an existing pension fund shall
14become the assets and liabilities of the Illinois Municipal
15Retirement Fund.
16 As and when directed by the Transition Board, the trustees
17of the pension funds established under Article 3 of this Code
18shall transfer to the Illinois Municipal Retirement Fund, for
19management and investment as assets of the Illinois Municipal
20Retirement Fund, all of their securities and other investments
21not needed for immediate use.
22 (c) At the time of consolidation or as otherwise directed
23by the Transition Board, assets not belonging to or arising
24from the trust that are incidentally owned by a pension fund,
25and any incidental liabilities of a pension fund not relating
26to or arising from the trust, shall become the assets and

SB3426- 27 -LRB100 20446 MJP 35795 b
1liabilities of the municipality.
2 Assets not belonging to or arising from the trust that are
3owned by a municipality and incidentally used by a pension
4fund, and any associated liabilities, are not affected by the
5consolidation and shall continue to be managed as assets and
6liabilities of that municipality.
7 As necessary or useful to effectuate the consolidation, the
8board of trustees of a pension fund to be consolidated and the
9applicable municipality may each, in its discretion, continue
10or renegotiate any employment or service contract, lease, or
11other contract to which it is a party that relates to the
12operation of the consolidated pension fund, and it may take
13appropriate action to terminate any such contract as necessary
14to terminate or avoid unnecessary or duplicative personnel,
15facilities, or services.
16 (d) Beginning on January 1, 2020, all benefits payable
17under this Article shall be payable from the appropriate
18accounts and reserves of the Illinois Municipal Retirement
19Fund.
20 (e) The consolidation of pension funds under this Article
21shall not diminish or impair the benefits of any current or
22former police officer who participated in one of those pension
23funds, or of any such police officer's surviving spouse,
24children, or other dependents.
25 The consolidation of pension funds under this Article shall
26not change the police officer contribution rate.

SB3426- 28 -LRB100 20446 MJP 35795 b
1 The consolidation of pension funds under this Article does
2not entitle any person to a recalculation or combination of any
3benefit or benefits previously granted or to a refund of any
4contribution previously paid.
5 The consolidation of pension funds under this Article is
6not intended to increase the benefits provided under this
7Article, except insofar as the consolidation of pension funds
8into the Illinois Municipal Retirement Fund will allow police
9officers in active service on or after the consolidation date
10to have their benefit calculations (and those of their
11qualifying survivors) include consideration of all of the
12police officer's service, salary, and credits in the Fund as
13though arising under the Fund, rather than as arising under
14more than one participating municipality or more than one
15Article 3 pension fund.
16 (f) On January 1, 2020, the rules adopted by the Transition
17Board shall become the rules of the Illinois Municipal
18Retirement Fund with respect to this Article.
19 (40 ILCS 5/3-106) (from Ch. 108 1/2, par. 3-106)
20 Sec. 3-106. Police officer, officer. "Police officer" or
21"officer": Any person who (1) is first appointed before January
221, 2020 to the police force of a police department and sworn
23and commissioned to perform police duties; and (2) within 3
24months after receiving his or her first appointment and, if
25reappointed, within 3 months thereafter, or as otherwise

SB3426- 29 -LRB100 20446 MJP 35795 b
1provided in Section 3-109, makes written application to the
2board to come under the provisions of this Article.
3 Police officers serving initial probationary periods, if
4otherwise eligible, shall be police officers within the meaning
5of this Section.
6(Source: P.A. 89-52, eff. 6-30-95.)
7 (40 ILCS 5/4-101) (from Ch. 108 1/2, par. 4-101)
8 Sec. 4-101. Creation and consolidation of the funds fund.
9 (a) Until January 1, 2020, in In each municipality as
10defined in Section 4-103, the city council or the board of
11trustees, as the case may be, shall establish and administer a
12firefighters' pension fund as prescribed in this Article, for
13the benefit of its firefighters and of their surviving spouses,
14children and certain other dependents. The duty of the
15corporate authorities of a municipality to establish and
16administer a firefighters' pension fund shall be suspended
17during any period during which the fund is dissolved under
18subsection (c) of Section 4-106.1 of this Code.
19 (b) On January 1, 2020, all of the individual firefighter
20pension funds then existing under this Article are merged and
21consolidated into the Illinois Municipal Retirement Fund,
22which shall be administered as prescribed in this Article and
23Article 7.
24 (c) Beginning January 1, 2020, each municipality, as
25defined in Section 4-103, shall participate in the Illinois

SB3426- 30 -LRB100 20446 MJP 35795 b
1Municipal Retirement Fund for the benefit of its firefighters
2and of their surviving spouses, children, and certain other
3dependents.
4 (d) It is the purpose of this consolidation to provide the
5advantages of (i) centralized custody and investment of pension
6fund assets, (ii) consistent interpretation and application of
7this Article in accordance with a single set of rules and
8procedures adopted by the Illinois Municipal Retirement Fund,
9and (iii) securing the future funding of pension benefits
10through an independent determination of each municipality's
11required annual contribution rate.
12(Source: P.A. 97-99, eff. 1-1-12.)
13 (40 ILCS 5/4-101.1 new)
14 Sec. 4-101.1. Transition Board.
15 (a) There is hereby created a Downstate Firefighter Pension
16Fund Transition Board, which may be referred to as the
17"Transition Board". The Transition Board shall consist of 11
18members as follows:
19 (1) The Director of the Illinois Department of
20 Insurance, or his or her designee.
21 (2) Two persons with experience in managing or
22 administering an Illinois public employee pension fund or
23 retirement system, appointed by the Governor.
24 (3) One person with experience in providing actuarial
25 services to an Illinois public employee pension fund or

SB3426- 31 -LRB100 20446 MJP 35795 b
1 retirement system, appointed by the Governor.
2 (4) One person with experience in auditing Illinois
3 public employee pension funds or retirement systems,
4 appointed by the Auditor General.
5 (5) Two members of the labor organization representing
6 the largest number of firefighters participating in
7 Article 4 pension funds, with one member being an active
8 participant and the other being a retired participant,
9 appointed by the Governor from recommendations of the
10 President of that organization.
11 (6) Two persons who are mayors or chief elected
12 officers of municipalities that maintain an Article 4
13 pension fund, appointed by the Governor from
14 recommendations of the Executive Director of the
15 organization representing the largest number of
16 municipalities in the State.
17 (7) One person familiar with the operation and
18 administration of the Illinois Municipal Retirement Fund,
19 appointed by the Executive Director of that Fund.
20 (8) One person familiar with the investment authority
21 and practices of the Illinois State Board of Investment,
22 appointed by the Executive Director of the Illinois State
23 Board of Investment.
24 All such appointments and designations shall be made by
25filing a written notice thereof with the Secretary of State no
26later than 30 days after the effective date of this amendatory

SB3426- 32 -LRB100 20446 MJP 35795 b
1Act of the 100th General Assembly.
2 (b) The Transition Board shall be responsible for planning,
3overseeing, and administering the consolidation and merger of
4all existing Article 4 pension funds into the Illinois
5Municipal Retirement Fund.
6 Members of the Transition Board shall act at all times in a
7manner appropriate for fiduciaries of the Fund and fiduciaries
8of the pension funds being consolidated.
9 The Transition Board's powers and duties include, but are
10not limited to, the following:
11 (1) Providing for the preservation and consolidation
12 of membership, beneficiary, financial, and other records
13 relating to the Article 4 pension funds to be merged.
14 (2) Obtaining all necessary Internal Revenue Service
15 and any other necessary approval or review.
16 (3) Providing for the final auditing of existing
17 Article 4 pension funds, including a final accounting of
18 their respective assets and liabilities, paid for by the
19 applicable pension fund.
20 (4) Providing for the custody and transfer of the
21 assets and liabilities of the existing Article 4 pension
22 funds to the Illinois Municipal Retirement Fund, on a
23 schedule to be determined by the Transition Board.
24 (5) Recommending to the Illinois Municipal Retirement
25 Fund an appropriate system of accounting for the assets and
26 liabilities attributable to the existing Article 4 pension

SB3426- 33 -LRB100 20446 MJP 35795 b
1 funds and for establishing separate reserves and accounts
2 for each municipality participating in the Fund with
3 respect to its firefighters.
4 (6) Recommending to the Illinois Municipal Retirement
5 Fund an appropriate system of determining, administering,
6 receiving, and enforcing the required municipal
7 contributions to the Fund. The municipal contribution rate
8 shall be determined separately for each municipality on an
9 annual basis in accordance with the requirements of this
10 Article, based on the municipality's separate reserves and
11 accounts within the Illinois Municipal Retirement Fund.
12 The Transition Board shall endeavor to determine the
13 required municipal contributions to the Illinois Municipal
14 Retirement Fund with regard to the municipality's
15 firefighters under this Article and to notify and provide
16 reasonable guidance to municipalities in a manner that
17 ensures uninterrupted contributions during the transition
18 period.
19 (7) Ensuring the uninterrupted payment and
20 administration of benefits.
21 (8) Adopting any rules or procedures necessary for the
22 efficient consolidation of the existing Article 4 pension
23 funds.
24 (9) Considering the consequences of the consolidation
25 on any QILDROs filed with the pension funds being
26 consolidated and giving appropriate notice and advice to

SB3426- 34 -LRB100 20446 MJP 35795 b
1 persons who may be affected by those QILDROs concerning the
2 possible effects of consolidation.
3 (10) Making recommendations to the Governor and the
4 General Assembly with respect to legislation necessary or
5 useful for the implementation of this consolidation or for
6 the successful administration of the Illinois Municipal
7 Retirement Fund with respect to firefighters under this
8 Article.
9 (11) Consulting with the Illinois Municipal Retirement
10 Fund about the Illinois Municipal Retirement Fund's
11 policies, practices, rules, and structure.
12 (c) The Public Pension Division of the Department of
13Insurance shall provide all reasonably necessary and available
14temporary office space, technical and clerical support, and
15monetary or other assistance at the request of the Transition
16Board.
17 For the purpose of implementing the consolidation, the
18Transition Board may direct the Public Pension Division to
19accelerate, expand, or enhance its examination under Section
201A-104 of all or specific Article 4 pension funds, or to
21conduct a particular study or investigation thereof. The
22expenses of such examinations and investigations, to the extent
23not paid by the Division, shall be charged to the applicable
24pension fund.
25 (d) In preparation for the consolidation of the pension
26funds into the Illinois Municipal Retirement Fund on January 1,

SB3426- 35 -LRB100 20446 MJP 35795 b
12020, the Transition Board is authorized to expend or obligate
2the assets of the Illinois Municipal Retirement Fund for any of
3the reasonable expenses of consolidating the pension funds into
4the Illinois Municipal Retirement Fund, including the payment
5of benefits during the consolidation period and reasonable
6administrative expenses. As used in this Section, "reasonable
7administrative expenses" includes, but is not limited to, the
8cost of hiring personnel and obtaining professional services to
9the extent necessary for the consolidation, the cost of
10insurance, and the cost of indemnifying members of the
11Transition Board and its employees, advisors, and agents.
12 (e) Members of the Transition Board, other than State
13officials and employees, may be compensated for their service,
14and all members may be reimbursed for their reasonable expenses
15out of any moneys available for that purpose.
16 (f) Sixty days after the Board of Trustees of the Illinois
17Municipal Retirement Fund assumes its duties, the Transition
18Board is abolished.
19 (40 ILCS 5/4-101.2 new)
20 Sec. 4-101.2. Consolidation of pension funds into the
21Illinois Municipal Retirement Fund.
22 (a) On January 1, 2020, all of the individual firefighter
23pension funds then existing under this Article are merged and
24consolidated into the Illinois Municipal Retirement Fund,
25which shall be administered as prescribed in this Article and

SB3426- 36 -LRB100 20446 MJP 35795 b
1Article 7.
2 In preparation for that consolidation, all pension funds
3established under this Article, and the municipalities that
4established them, shall cooperate with the Transition Board.
5 (b) The Illinois Municipal Retirement Fund shall be the
6legal successor to each of the pension funds that are
7consolidated within it, and it may exercise any of the rights
8and powers and perform any of the duties of those pension
9funds.
10 At the time of consolidation, or as otherwise directed by
11the Transition Board, all assets and liabilities belonging to
12or arising from the trust of an existing pension fund shall
13become the assets and liabilities of the Illinois Municipal
14Retirement Fund.
15 As and when directed by the Transition Board, the trustees
16of the pension funds established under Article 4 of this Code
17shall transfer to the Illinois Municipal Retirement Fund, for
18management and investment as assets of the Illinois Municipal
19Retirement Fund, all of their securities and other investments
20not needed for immediate use.
21 (c) At the time of consolidation or as otherwise directed
22by the Transition Board, assets not belonging to or arising
23from the trust that are incidentally owned by a pension fund,
24and any incidental liabilities of a pension fund not relating
25to or arising from the trust, shall become the assets and
26liabilities of the municipality.

SB3426- 37 -LRB100 20446 MJP 35795 b
1 Assets not belonging to or arising from the trust that are
2owned by a municipality and incidentally used by a pension
3fund, and any associated liabilities, are not affected by the
4consolidation and shall continue to be managed as assets and
5liabilities of that municipality.
6 As necessary or useful to effectuate the consolidation, the
7board of trustees of a pension fund to be consolidated and the
8applicable municipality may each, in its discretion, continue
9or renegotiate any employment or service contract, lease, or
10other contract to which it is a party that relates to the
11operation of the consolidated pension fund, and it may take
12appropriate action to terminate any such contract as necessary
13to terminate or avoid unnecessary or duplicative personnel,
14facilities, or services.
15 (d) Beginning on January 1, 2020, all benefits payable
16under this Article shall be payable from the appropriate
17accounts and reserves of the Illinois Municipal Retirement
18Fund.
19 (e) The consolidation of pension funds under this Article
20shall not diminish or impair the benefits of any current or
21former firefighter who participated in one of those pension
22funds, or of any such firefighter's surviving spouse, children,
23or other dependents.
24 The consolidation of pension funds under this Article shall
25not change the firefighter contribution rate, except that no
26additional contribution shall be paid under subsection (c) of

SB3426- 38 -LRB100 20446 MJP 35795 b
1Section 4-118.1.
2 The consolidation of pension funds under this Article does
3not entitle any person to a recalculation or combination of any
4benefit or benefits previously granted or to a refund of any
5contribution previously paid.
6 The consolidation of pension funds under this Article is
7not intended to increase the benefits provided under this
8Article, except insofar as the consolidation of pension funds
9into the Illinois Municipal Retirement Fund will allow
10firefighters in active service on or after the consolidation
11date to have their benefit calculations (and those of their
12qualifying survivors) include consideration of all of the
13firefighter's service, salary, and credits in the Fund as
14though arising under the Fund, rather than as arising under
15more than one participating municipality or more than one
16Article 4 pension fund.
17 (f) On January 1, 2020, the rules adopted by the Transition
18Board shall become the rules of the Illinois Municipal
19Retirement Fund with respect to this Article.
20 (40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)
21 Sec. 4-106. Firefighter, firefighters. "Firefighter,
22firefighters":
23 (a) In municipalities which have adopted Division 1 of
24Article 10 of the Illinois Municipal Code, any person first
25employed before January 1, 2020 in the municipality's fire

SB3426- 39 -LRB100 20446 MJP 35795 b
1service as a firefighter, fire engineer, marine engineer, fire
2pilot, bomb technician or scuba diver; and in any of these
3positions where such person's duties also include those of a
4firefighter as classified by the Civil Service Commission of
5that city, and whose duty is to participate in the work of
6controlling and extinguishing fires at the location of any such
7fires.
8 (b) In municipalities which are subject to Division 2.1 of
9Article 10 of the Illinois Municipal Code, any person first
10employed before January 1, 2020 by a city in its fire service
11as a firefighter, fire engineer, marine engineer, fire pilot,
12bomb technician, or scuba diver; and, in any of these positions
13whose duties also include those of a firefighter and are
14certified in the same manner as a firefighter in that city.
15 (c) In municipalities which are subject to neither Division
161 nor Division 2.1 of Article 10 of the Illinois Municipal
17Code, any person who would have been included as a firefighter
18under sub-paragraph (a) or (b) above except that he served as a
19de facto and not as a de jure firefighter.
20 (d) Notwithstanding the other provisions of this Section,
21"firefighter" does not include any person who is actively
22participating in the State Universities Retirement System
23under subsection (h) of Section 15-107 with respect to the
24employment for which he or she is a participating employee in
25that System.
26 (e) This amendatory Act of 1977 does not affect persons

SB3426- 40 -LRB100 20446 MJP 35795 b
1covered by this Article prior to September 22, 1977.
2(Source: P.A. 90-576, eff. 3-31-98.)
3 (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
4 Sec. 7-109. Employee.
5 (1) "Employee" means any person who:
6 (a) 1. Receives earnings as payment for the performance
7 of personal services or official duties out of the general
8 fund of a municipality, or out of any special fund or funds
9 controlled by a municipality, or by an instrumentality
10 thereof, or a participating instrumentality, including, in
11 counties, the fees or earnings of any county fee office;
12 and
13 2. Under the usual common law rules applicable in
14 determining the employer-employee relationship, has the
15 status of an employee with a municipality, or any
16 instrumentality thereof, or a participating
17 instrumentality, including aldermen, county supervisors
18 and other persons (excepting those employed as independent
19 contractors) who are paid compensation, fees, allowances
20 or other emolument for official duties, and, in counties,
21 the several county fee offices.
22 (b) Serves as a township treasurer appointed under the
23 School Code, as heretofore or hereafter amended, and who
24 receives for such services regular compensation as
25 distinguished from per diem compensation, and any regular

SB3426- 41 -LRB100 20446 MJP 35795 b
1 employee in the office of any township treasurer whether or
2 not his earnings are paid from the income of the permanent
3 township fund or from funds subject to distribution to the
4 several school districts and parts of school districts as
5 provided in the School Code, or from both such sources; or
6 is the chief executive officer, chief educational officer,
7 chief fiscal officer, or other employee of a Financial
8 Oversight Panel established pursuant to Article 1H of the
9 School Code, other than a superintendent or certified
10 school business official, except that such person shall not
11 be treated as an employee under this Section if that person
12 has negotiated with the Financial Oversight Panel, in
13 conjunction with the school district, a contractual
14 agreement for exclusion from this Section.
15 (c) Holds an elective office in a municipality,
16 instrumentality thereof or participating instrumentality.
17 (d) Is first appointed on or after January 1, 2020 to
18 the police force of a police department in a municipality,
19 as defined in Section 3-103, and sworn and commissioned to
20 perform police duties.
21 (e) Is in a municipality, as defined in Section 4-103,
22 that has adopted Division 1 of Article 10 of the Illinois
23 Municipal Code and is first employed on or after January 1,
24 2020 in the municipality's fire service as a firefighter,
25 fire engineer, marine engineer, fire pilot, bomb
26 technician, or scuba diver; and in any of these positions

SB3426- 42 -LRB100 20446 MJP 35795 b
1 where such person's duties also include those of a
2 firefighter as classified by the Civil Service Commission
3 of that city, and whose duty is to participate in the work
4 of controlling and extinguishing fires at the location of
5 any such fires.
6 (f) Is in a municipality, as defined in Section 4-103,
7 that is subject to Division 2.1 of Article 10 of the
8 Illinois Municipal Code and is first employed on or after
9 January 1, 2020 by a city in its fire service as a
10 firefighter, fire engineer, marine engineer, fire pilot,
11 bomb technician, or scuba diver; and, in any of these
12 positions whose duties also include those of a firefighter
13 and are certified in the same manner as a firefighter in
14 that city.
15 (g) Is first employed on or after January 1, 2020 in a
16 municipality, as defined in Section 4-103, that is subject
17 to neither Division 1 nor Division 2.1 of Article 10 of the
18 Illinois Municipal Code and would have been included as an
19 employee under items (e) or (f) except that he or she
20 served as a de facto and not as a de jure firefighter.
21 (2) "Employee" does not include persons who:
22 (a) Are eligible for inclusion under any of the
23 following laws:
24 1. "An Act in relation to an Illinois State
25 Teachers' Pension and Retirement Fund", approved May
26 27, 1915, as amended;

SB3426- 43 -LRB100 20446 MJP 35795 b
1 2. Articles 15 and 16 of this Code.
2 However, such persons shall be included as employees to
3 the extent of earnings that are not eligible for inclusion
4 under the foregoing laws for services not of an
5 instructional nature of any kind.
6 However, any member of the armed forces who is employed
7 as a teacher of subjects in the Reserve Officers Training
8 Corps of any school and who is not certified under the law
9 governing the certification of teachers shall be included
10 as an employee.
11 (b) Are designated before January 1, 2020 by the
12 governing body of a municipality in which a pension fund is
13 required by law to be established for policemen or firemen,
14 respectively, as performing police or fire protection
15 duties, except that when such persons are the heads of the
16 police or fire department and are not eligible to be
17 included within any such pension fund, they shall be
18 included within this Article; provided, that such persons
19 shall not be excluded to the extent of concurrent service
20 and earnings not designated as being for police or fire
21 protection duties. However, (i) any head of a police
22 department who was a participant under this Article
23 immediately before October 1, 1977 and did not elect, under
24 Section 3-109 of this Act, to participate in a police
25 pension fund shall be an "employee", and (ii) any chief of
26 police who became a participating employee under this

SB3426- 44 -LRB100 20446 MJP 35795 b
1 Article before January 1, 2019 and who elects to
2 participate in this Fund under Section 3-109.1 of this
3 Code, regardless of whether such person continues to be
4 employed as chief of police or is employed in some other
5 rank or capacity within the police department, shall be an
6 employee under this Article for so long as such person is
7 employed to perform police duties by a participating
8 municipality and has not lawfully rescinded that election.
9 (c) Are contributors to or eligible to contribute to a
10 Taft-Hartley pension plan to which the participating
11 municipality is required to contribute as the person's
12 employer based on earnings from the municipality. Nothing
13 in this paragraph shall affect service credit or creditable
14 service for any period of service prior to the effective
15 date of this amendatory Act of the 98th General Assembly,
16 and this paragraph shall not apply to individuals who are
17 participating in the Fund prior to the effective date of
18 this amendatory Act of the 98th General Assembly.
19 (d) Become an employee of any of the following
20 participating instrumentalities on or after the effective
21 date of this amendatory Act of the 99th General Assembly:
22 the Illinois Municipal League; the Illinois Association of
23 Park Districts; the Illinois Supervisors, County
24 Commissioners and Superintendents of Highways Association;
25 an association, or not-for-profit corporation, membership
26 in which is authorized under Section 85-15 of the Township

SB3426- 45 -LRB100 20446 MJP 35795 b
1 Code; the United Counties Council; or the Will County
2 Governmental League.
3 (3) All persons, including, without limitation, public
4defenders and probation officers, who receive earnings from
5general or special funds of a county for performance of
6personal services or official duties within the territorial
7limits of the county, are employees of the county (unless
8excluded by subsection (2) of this Section) notwithstanding
9that they may be appointed by and are subject to the direction
10of a person or persons other than a county board or a county
11officer. It is hereby established that an employer-employee
12relationship under the usual common law rules exists between
13such employees and the county paying their salaries by reason
14of the fact that the county boards fix their rates of
15compensation, appropriate funds for payment of their earnings
16and otherwise exercise control over them. This finding and this
17amendatory Act shall apply to all such employees from the date
18of appointment whether such date is prior to or after the
19effective date of this amendatory Act and is intended to
20clarify existing law pertaining to their status as
21participating employees in the Fund.
22(Source: P.A. 99-830, eff. 1-1-17; 100-281, eff. 8-24-17.)
23 (40 ILCS 5/7-199.5 new)
24 Sec. 7-199.5. To assist in the consolidation of the pension
25funds under Articles 3 and 4. The Board shall assist in the

SB3426- 46 -LRB100 20446 MJP 35795 b
1consolidation of pension funds under Articles 3 and 4 and shall
2provide assistance to the Transition Boards created under
3Sections 3-101.1 and 4-101.1 of this Code. The Board shall
4adopt any rules necessary to prepare for the consolidation of
5the pension funds under Articles 3 and 4, including
6establishing accounts and reserves necessary for the
7administration of the benefits and requirements under Articles
83 and 4, and to provide recommendations and administrative
9support necessary to the Transition Boards.
10 (40 ILCS 5/7-199.6 new)
11 Sec. 7-199.6. To administer the benefits under Articles 3
12and 4.
13 (a) On and after January 1, 2020, the Fund shall administer
14the benefits and other requirements under Article 3 in
15accordance with that Article and this Article 7. To the extent
16that the administrative requirements under Article 3 conflict
17with this Article 7, this Article 7 shall control. The Fund may
18exercise any of the rights and powers and perform any of the
19duties of the consolidated pension funds under Article 3.
20 The Fund shall adopt rules for the efficient operation and
21administration of Article 3. Any rules adopted by the
22Transition Board established under Section 3-101.1 shall
23become the rules of the Illinois Municipal Retirement Fund with
24respect to the benefits and administration of Article 3 until
25the Illinois Municipal Retirement Fund rescinds those rules or

SB3426- 47 -LRB100 20446 MJP 35795 b
1adopts superseding rules.
2 (b) On and after January 1, 2020, the Fund shall administer
3the benefits and other requirements under Article 4 in
4accordance with that Article and this Article 7. To the extent
5that the administrative requirements under Article 4 conflict
6with this Article 7, this Article 7 shall control. The Fund may
7exercise any of the rights and powers and perform any of the
8duties of the consolidated pension funds under Article 4
9 The Fund shall adopt rules for the efficient operation and
10administration of Article 4. Any rules adopted by the
11Transition Board established under Section 4-101.1 shall
12become the rules of the Illinois Municipal Retirement Fund with
13respect to the benefits and administration of Article 4 until
14the Illinois Municipal Retirement Fund rescinds those rules or
15adopts superseding rules.
16 Section 15. The Illinois Pension Code is amended by
17changing Sections 3-103, 3-105, 3-108.2, 3-108.3, 3-110,
183-110.7, 3-125, 3-125.1, 3-128, 3-134, 3-135, 3-141, 4-103,
194-105, 4-105c, 4-105d, 4-108, 4-118, 4-118.1, 4-121, 4-124,
204-128, 4-134, 7-175, and 7-175.1 and by adding Sections
213-102.1, 3-103.9, 3-141a, 3-141b, 4-102.1, 4-106.5, 4-130.1,
22and 4-130.3 as follows:
23 (40 ILCS 5/3-102.1 new)
24 Sec. 3-102.1. Fund. "Fund" or "pension fund": Until January

SB3426- 48 -LRB100 20446 MJP 35795 b
11, 2020, a police pension fund established by a municipality
2under this Article.
3 Beginning January 1, 2020, "Fund" or "pension fund" means
4the Illinois Municipal Retirement Fund with respect to this
5Article; depending on the context, the terms may include one or
6more of those previously established pension funds.
7 (40 ILCS 5/3-103) (from Ch. 108 1/2, par. 3-103)
8 Sec. 3-103. Municipality; participating municipality;
9governing body.
10 (a) "Municipality": (1) Any city, village or incorporated
11town of 5,000 or more but less than 500,000 inhabitants, as
12determined from the United States Government statistics or a
13census taken at any time by the city, village or incorporated
14town and (2) any city, village or incorporated town of less
15than 5,000 inhabitants which, by referendum held under Section
163-145 adopts this Article.
17 (b) "Participating municipality" means a municipality, as
18defined in subsection (a), that both is required (or has
19elected) to and does in fact participate in the Fund with
20respect to its police officers under this Article.
21 (c) "Governing body" includes, but is not limited to, the
22board of town trustees or other persons empowered to draft the
23tentative budget and appropriation ordinance and the electors
24of such a township acting at the annual or special meeting of
25town electors.

SB3426- 49 -LRB100 20446 MJP 35795 b
1(Source: P.A. 83-1440.)
2 (40 ILCS 5/3-103.9 new)
3 Sec. 3-103.9. Authorized agent of a participating
4municipality.
5 (a) Each participating municipality shall appoint an
6authorized agent who shall have the powers and duties set forth
7in this Section. In the absence of such an appointment, the
8duties of the authorized agent shall devolve upon the clerk or
9secretary of the municipality. The authorized agent may be the
10same person appointed as the authorized agent under Section
117-135.
12 (b) The authorized agent of the municipality shall have the
13following powers and duties:
14 (1) To certify to the Fund whether or not a given
15 person is authorized to participate in the Fund.
16 (2) To certify to the Fund when a participating
17 employee is on a leave of absence authorized by the
18 municipality.
19 (3) To request the proper officer to cause employee
20 contributions to be withheld from salary and promptly
21 transmitted to the Fund.
22 (4) To request the proper officer to cause municipality
23 contributions to be promptly forwarded to the Fund.
24 (5) To forward promptly to all participating employees
25 any communications for such employees from the Fund or the

SB3426- 50 -LRB100 20446 MJP 35795 b
1 municipality.
2 (6) To forward promptly to the Board of the Fund all
3 applications, claims reports, and other communications
4 delivered to the agent by participating employees.
5 (7) To perform all duties related to the administration
6 of the Fund as requested by the Fund or the governing body
7 of the municipality.
8 (c) The governing body of each participating municipality
9may delegate either or both of the following powers to its
10authorized agent:
11 (1) To file a petition for nomination of an executive
12 trustee of the Fund.
13 (2) To cast the ballot for election of an executive
14 trustee of the Fund.
15 If a governing body does not authorize its agent to perform
16the powers set forth in this Section, they shall be performed
17by the governing body itself, unless the governing body by
18resolution duly certified to the Fund delegates them to some
19other officer or employee.
20 (d) The delivery of any communication or document by an
21employee or a municipality to the authorized agent of the
22municipality does not constitute delivery to the Fund.
23 (40 ILCS 5/3-105) (from Ch. 108 1/2, par. 3-105)
24 Sec. 3-105. Board. "Board": Until January 1, 2020, the The
25board of trustees of the police pension fund of a municipality

SB3426- 51 -LRB100 20446 MJP 35795 b
1as established in subsection (a) of Section 3-128.
2 Beginning January 1, 2020, the Board of Trustees of the
3Illinois Municipal Retirement Fund; depending on the context,
4the term may include the former board of trustees of one or
5more of those previously established pension funds.
6(Source: P.A. 83-1440.)
7 (40 ILCS 5/3-108.2)
8 Sec. 3-108.2. Participant. "Participant": A police officer
9or deferred pensioner of the Fund a pension fund, or a
10beneficiary of the Fund pension fund.
11(Source: P.A. 90-507, eff. 8-22-97.)
12 (40 ILCS 5/3-108.3)
13 Sec. 3-108.3. Beneficiary. "Beneficiary": A person
14receiving benefits from the Fund a pension fund, including, but
15not limited to, retired pensioners, disabled pensioners, their
16surviving spouses, minor children, disabled children, and
17dependent parents. If a special needs trust as described in
18Section 1396p(d)(4) of Title 42 of the United States Code, as
19amended from time to time, has been established for a disabled
20adult child, then the special needs trust may stand in lieu of
21the disabled adult child as a beneficiary for the purposes of
22this Article.
23(Source: P.A. 96-1143, eff. 7-21-10.)

SB3426- 52 -LRB100 20446 MJP 35795 b
1 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
2 Sec. 3-110. Creditable service.
3 (a) "Creditable service" is the time served by a police
4officer as a member of a regularly constituted police force of
5a municipality. In computing creditable service furloughs
6without pay exceeding 30 days shall not be counted, but all
7leaves of absence for illness or accident, regardless of
8length, and all periods of disability retirement for which a
9police officer has received no disability pension payments
10under this Article shall be counted.
11 (a-3) Upon the consolidation of the police pension funds
12under this Article into the Fund on January 1, 2020, creditable
13service under any such pension fund shall be deemed to be
14creditable service in the Fund, subject to the following
15provisions:
16 (1) The consolidation of police pension funds into the
17 Fund shall not result in the duplication of any service
18 credit based on the same period of service in this or any
19 other pension fund or retirement system subject to this
20 Code.
21 (2) If this Section or any other provision of this
22 Article imposes a limit on the amount of creditable service
23 that may be established for a particular activity or
24 purpose and prior to consolidation a police officer has
25 established periods of creditable service for that
26 activity or purpose in more than one former police pension

SB3426- 53 -LRB100 20446 MJP 35795 b
1 fund under this Article, which periods are within that
2 limitation for each such fund but together exceed that
3 limitation, then upon consolidation all such credit
4 previously established by the police officer shall be
5 preserved under the Fund, but no additional creditable
6 service for that activity or purpose may be established by
7 that police officer in the Fund.
8 (3) The consolidation of police pension funds into the
9 Fund shall not entitle any person or pension fund to a
10 refund of any contribution or payment previously paid or
11 transferred in order to establish or transfer creditable
12 service under this Article.
13 (a-5) Up to 3 years of time during which the police officer
14receives a disability pension under Section 3-114.1, 3-114.2,
153-114.3, or 3-114.6 shall be counted as creditable service,
16provided that (i) the police officer returns to active service
17after the disability for a period at least equal to the period
18for which credit is to be established and (ii) the police
19officer makes contributions to the Fund fund based on the rates
20specified in Section 3-125.1 and the salary upon which the
21disability pension is based. These contributions may be paid at
22any time prior to the commencement of a retirement pension. The
23police officer may, but need not, elect to have the
24contributions deducted from the disability pension or to pay
25them in installments on a schedule approved by the board. If
26not deducted from the disability pension, the contributions

SB3426- 54 -LRB100 20446 MJP 35795 b
1shall include interest at the rate of 6% per year, compounded
2annually, from the date for which service credit is being
3established to the date of payment. If contributions are paid
4under this subsection (a-5) in excess of those needed to
5establish the credit, the excess shall be refunded. This
6subsection (a-5) applies to persons receiving a disability
7pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
8the effective date of this amendatory Act of the 91st General
9Assembly, as well as persons who begin to receive such a
10disability pension after that date.
11 (b) Creditable service includes all periods of service in
12the military, naval or air forces of the United States entered
13upon while an active police officer of a municipality, provided
14that upon applying for a permanent pension, and in accordance
15with the rules of the board, the police officer pays into the
16Fund fund the amount the officer would have contributed if he
17or she had been a regular contributor during such period, to
18the extent that the municipality which the police officer
19served has not made such contributions in the officer's behalf.
20The total amount of such creditable service shall not exceed 5
21years, except that any police officer who on July 1, 1973 had
22more than 5 years of such creditable service shall receive the
23total amount thereof.
24 (b-5) Creditable service includes all periods of service in
25the military, naval, or air forces of the United States entered
26upon before beginning service as an active police officer of a

SB3426- 55 -LRB100 20446 MJP 35795 b
1municipality, provided that, in accordance with the rules of
2the board, the police officer pays into the Fund fund the
3amount the police officer would have contributed if he or she
4had been a regular contributor during such period, plus an
5amount determined by the Board to be equal to the
6municipality's normal cost of the benefit, plus interest at the
7actuarially assumed rate calculated from the date the employee
8last became a police officer under this Article. The total
9amount of such creditable service shall not exceed 2 years.
10 (c) Creditable service also includes service rendered by a
11police officer while on leave of absence from a police
12department to serve as an executive of an organization whose
13membership consists of members of a police department, subject
14to the following conditions: (i) the police officer is a
15participant of the Fund a fund established under this Article
16with at least 10 years of service as a police officer; (ii) the
17police officer received no credit for such service under any
18other retirement system, pension fund, or annuity and benefit
19fund included in this Code; (iii) pursuant to the rules of the
20board the police officer pays to the Fund fund the amount he or
21she would have contributed had the officer been an active
22member of the police department; (iv) the organization pays a
23contribution equal to the municipality's normal cost for that
24period of service; and (v) for all leaves of absence under this
25subsection (c), including those beginning before the effective
26date of this amendatory Act of the 97th General Assembly, the

SB3426- 56 -LRB100 20446 MJP 35795 b
1police officer continues to remain in sworn status, subject to
2the professional standards of the public employer or those
3terms established in statute.
4 (d)(1) Creditable service also includes periods of
5 service originally established in another police pension
6 fund under this Article or in the Fund established under
7 Article 7 of this Code for which (i) the contributions have
8 been transferred under Section 3-110.7 or Section 7-139.9
9 and (ii) any additional contribution required under
10 paragraph (2) of this subsection has been paid in full in
11 accordance with the requirements of this subsection (d).
12 (2) If the board of the pension fund to which
13 creditable service and related contributions are
14 transferred under Section 7-139.9 determines that the
15 amount transferred is less than the true cost to the
16 pension fund of allowing that creditable service to be
17 established, then in order to establish that creditable
18 service the police officer must pay to the pension fund,
19 within the payment period specified in paragraph (3) of
20 this subsection, an additional contribution equal to the
21 difference, as determined by the board in accordance with
22 the rules and procedures adopted under paragraph (6) of
23 this subsection. If the board of the pension fund to which
24 creditable service and related contributions are
25 transferred under Section 3-110.7 determines that the
26 amount transferred is less than the true cost to the

SB3426- 57 -LRB100 20446 MJP 35795 b
1 pension fund of allowing that creditable service to be
2 established, then the police officer may elect (A) to
3 establish that creditable service by paying to the pension
4 fund, within the payment period specified in paragraph (3)
5 of this subsection (d), an additional contribution equal to
6 the difference, as determined by the board in accordance
7 with the rules and procedures adopted under paragraph (6)
8 of this subsection (d) or (B) to have his or her creditable
9 service reduced by an amount equal to the difference
10 between the amount transferred under Section 3-110.7 and
11 the true cost to the pension fund of allowing that
12 creditable service to be established, as determined by the
13 board in accordance with the rules and procedures adopted
14 under paragraph (6) of this subsection (d).
15 (3) Except as provided in paragraph (4), the additional
16 contribution that is required or elected under paragraph
17 (2) of this subsection (d) must be paid to the board (i)
18 within 5 years from the date of the transfer of
19 contributions under Section 3-110.7 or 7-139.9 and (ii)
20 before the police officer terminates service with the fund.
21 The additional contribution may be paid in a lump sum or in
22 accordance with a schedule of installment payments
23 authorized by the board.
24 (4) If the police officer dies in service before
25 payment in full has been made and before the expiration of
26 the 5-year payment period, the surviving spouse of the

SB3426- 58 -LRB100 20446 MJP 35795 b
1 officer may elect to pay the unpaid amount on the officer's
2 behalf within 6 months after the date of death, in which
3 case the creditable service shall be granted as though the
4 deceased police officer had paid the remaining balance on
5 the day before the date of death.
6 (5) If the additional contribution that is required or
7 elected under paragraph (2) of this subsection (d) is not
8 paid in full within the required time, the creditable
9 service shall not be granted and the police officer (or the
10 officer's surviving spouse or estate) shall be entitled to
11 receive a refund of (i) any partial payment of the
12 additional contribution that has been made by the police
13 officer and (ii) those portions of the amounts transferred
14 under subdivision (a)(1) of Section 3-110.7 or
15 subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
16 represent employee contributions paid by the police
17 officer (but not the accumulated interest on those
18 contributions) and interest paid by the police officer to
19 the prior pension fund in order to reinstate service
20 terminated by acceptance of a refund.
21 At the time of paying a refund under this item (5), the
22 pension fund shall also repay to the pension fund from
23 which the contributions were transferred under Section
24 3-110.7 or 7-139.9 the amount originally transferred under
25 subdivision (a)(2) of that Section, plus interest at the
26 rate of 6% per year, compounded annually, from the date of

SB3426- 59 -LRB100 20446 MJP 35795 b
1 the original transfer to the date of repayment. Amounts
2 repaid to the Article 7 fund under this provision shall be
3 credited to the appropriate municipality.
4 Transferred credit that is not granted due to failure
5 to pay the additional contribution within the required time
6 is lost; it may not be transferred to another pension fund
7 and may not be reinstated in the pension fund from which it
8 was transferred.
9 (6) The Public Employee Pension Fund Division of the
10 Department of Insurance shall establish by rule the manner
11 of making the calculation required under paragraph (2) of
12 this subsection, taking into account the appropriate
13 actuarial assumptions; the police officer's service, age,
14 and salary history; the level of funding of the pension
15 fund to which the credits are being transferred; and any
16 other factors that the Division determines to be relevant.
17 The rules may require that all calculations made under
18 paragraph (2) be reported to the Division by the board
19 performing the calculation, together with documentation of
20 the creditable service to be transferred, the amounts of
21 contributions and interest to be transferred, the manner in
22 which the calculation was performed, the numbers relied
23 upon in making the calculation, the results of the
24 calculation, and any other information the Division may
25 deem useful.
26 (e)(1) Creditable service also includes periods of

SB3426- 60 -LRB100 20446 MJP 35795 b
1 service originally established in the Fund established
2 under Article 7 of this Code for which the contributions
3 have been transferred under Section 7-139.11.
4 (2) If the board of the pension fund to which
5 creditable service and related contributions are
6 transferred under Section 7-139.11 determines that the
7 amount transferred is less than the true cost to the
8 pension fund of allowing that creditable service to be
9 established, then the amount of creditable service the
10 police officer may establish under this subsection (e)
11 shall be reduced by an amount equal to the difference, as
12 determined by the board in accordance with the rules and
13 procedures adopted under paragraph (3) of this subsection.
14 (3) The Public Pension Division of the Department of
15 Financial and Professional Regulation shall establish by
16 rule the manner of making the calculation required under
17 paragraph (2) of this subsection, taking into account the
18 appropriate actuarial assumptions; the police officer's
19 service, age, and salary history; the level of funding of
20 the pension fund to which the credits are being
21 transferred; and any other factors that the Division
22 determines to be relevant. The rules may require that all
23 calculations made under paragraph (2) be reported to the
24 Division by the board performing the calculation, together
25 with documentation of the creditable service to be
26 transferred, the amounts of contributions and interest to

SB3426- 61 -LRB100 20446 MJP 35795 b
1 be transferred, the manner in which the calculation was
2 performed, the numbers relied upon in making the
3 calculation, the results of the calculation, and any other
4 information the Division may deem useful.
5 (4) Until January 1, 2010, a police officer who
6 transferred service from the Fund established under
7 Article 7 of this Code under the provisions of Public Act
8 94-356 may establish additional credit, but only for the
9 amount of the service credit reduction in that transfer, as
10 calculated under paragraph (3) of this subsection (e). This
11 credit may be established upon payment by the police
12 officer of an amount to be determined by the board, equal
13 to (1) the amount that would have been contributed as
14 employee and employer contributions had all of the service
15 been as an employee under this Article, plus interest
16 thereon at the rate of 6% per year, compounded annually
17 from the date of service to the date of transfer, less (2)
18 the total amount transferred from the Article 7 Fund, plus
19 (3) interest on the difference at the rate of 6% per year,
20 compounded annually, from the date of the transfer to the
21 date of payment. The additional service credit is allowed
22 under this amendatory Act of the 95th General Assembly
23 notwithstanding the provisions of Article 7 terminating
24 all transferred credits on the date of transfer.
25(Source: P.A. 96-297, eff. 8-11-09; 96-1260, eff. 7-23-10;
2697-651, eff. 1-5-12.)

SB3426- 62 -LRB100 20446 MJP 35795 b
1 (40 ILCS 5/3-110.7)
2 Sec. 3-110.7. Transfer between Article 3 funds.
3 (a) Until January 1, 2020 (the consolidation date), an An
4active member of a pension fund established under this Article
5may apply for transfer to that fund of his or her creditable
6service and related contributions accumulated in any other
7police pension fund established under this Article, except that
8a police officer may not transfer creditable service under this
9Section from a pension fund unless (i) the police officer
10actively served in the police department under that fund for at
11least 2 years, (ii) the police officer actively served in the
12police department under that fund for less than 2 years but was
13laid off or otherwise involuntarily terminated for a reason
14other than the fault of the officer, or (iii) the police
15officer was not in service in the police department under that
16fund on or after the effective date of this Section. Upon
17receiving the application, that other pension fund shall
18transfer to the pension fund in which the applicant currently
19participates an amount equal to:
20 (1) the amounts actually contributed by or on behalf of
21 the applicant to the fund as employee contributions
22 (including any interest paid by the applicant in order to
23 reinstate service), plus interest on those amounts at the
24 rate of 6% per year, compounded annually, from the date of
25 contribution to the date of transfer; plus

SB3426- 63 -LRB100 20446 MJP 35795 b
1 (2) an amount representing employer contributions,
2 equal to the total amount determined under subdivision (1).
3Participation in that other pension fund shall terminate on the
4date of transfer.
5 (b) An active member of the Fund a pension fund established
6under this Article may reinstate in the Fund service in any
7other pension fund established under this Article that was
8terminated by receipt of a refund, by paying to the Fund that
9other pension fund the amount of the refund plus interest
10thereon at the rate of 6% per year, compounded annually, from
11the date of refund to the date of payment.
12(Source: P.A. 90-460, eff. 8-17-97.)
13 (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
14 Sec. 3-125. Financing; tax.
15 (a) The governing body city council or the board of
16trustees of a participating the municipality shall annually
17levy a tax upon all the taxable property of the municipality at
18the rate on the dollar which will produce an amount which, when
19added to the deductions from the salaries or wages of police
20officers, and revenues available from other sources, will equal
21a sum sufficient to meet the annual requirements of the account
22of the participating municipality police pension fund. The
23annual requirements to be provided by such tax levy are equal
24to (1) the normal cost of benefits attributable to the
25participating municipality and its police officers, as

SB3426- 64 -LRB100 20446 MJP 35795 b
1determined by an enrolled actuary employed by the Fund, the
2pension fund for the year involved, plus (2) an amount
3sufficient to bring the total assets of the account of the
4participating municipality pension fund up to 90% of the total
5actuarial liabilities of the account of the participating
6municipality pension fund by the end of municipal fiscal year
72040, as annually updated and determined by an enrolled actuary
8employed by the Fund Illinois Department of Insurance or by an
9enrolled actuary retained by the pension fund or the
10municipality. In making these determinations, the required
11minimum employer contribution shall be calculated each year as
12a level percentage of payroll over the years remaining up to
13and including fiscal year 2040 and shall be determined under
14the projected unit credit actuarial cost method. The tax shall
15be levied and collected in the same manner as the general taxes
16of the municipality, and in addition to all other taxes now or
17hereafter authorized to be levied upon all property within the
18municipality, and shall be in addition to the amount authorized
19to be levied for general purposes as provided by Section 8-3-1
20of the Illinois Municipal Code, approved May 29, 1961, as
21amended. The tax shall be forwarded directly to the treasurer
22of the board within 30 business days after receipt by the
23county.
24 (b) For purposes of determining the required employer
25contribution to the Fund a pension fund, the value of the
26pension fund's assets shall be equal to the actuarial value of

SB3426- 65 -LRB100 20446 MJP 35795 b
1the pension fund's assets, which shall be calculated as
2follows:
3 (1) (Blank). On March 30, 2011, the actuarial value of
4 a pension fund's assets shall be equal to the market value
5 of the assets as of that date.
6 (2) In determining the actuarial value of the System's
7 assets of the account of the participating municipality for
8 fiscal years after March 30, 2011, any actuarial gains or
9 losses from investment return incurred in a fiscal year
10 shall be recognized in equal annual amounts over the 5-year
11 period following that fiscal year.
12 (c) If a participating municipality fails to transmit to
13the Fund fund contributions required of it under this Article
14for more than 90 days after the payment of those contributions
15is due, the Fund fund may, after giving notice to the
16municipality, certify to the State Comptroller the amounts of
17the delinquent payments in accordance with any applicable rules
18of the Comptroller, and the Comptroller must, beginning in
19fiscal year 2016, deduct and remit to the Fund, for credit to
20the account of the participating municipality, fund the
21certified amounts or a portion of those amounts from the
22following proportions of payments of State funds to the
23municipality:
24 (1) in fiscal year 2016, one-third of the total amount
25 of any payments of State funds to the municipality;
26 (2) in fiscal year 2017, two-thirds of the total amount

SB3426- 66 -LRB100 20446 MJP 35795 b
1 of any payments of State funds to the municipality; and
2 (3) in fiscal year 2018 and each fiscal year
3 thereafter, the total amount of any payments of State funds
4 to the municipality.
5 The State Comptroller may not deduct from any payments of
6State funds to the municipality more than the amount of
7delinquent payments certified to the State Comptroller by the
8Fund fund.
9 (d) (Blank). The police pension fund shall consist of the
10following moneys which shall be set apart by the treasurer of
11the municipality:
12 (1) All moneys derived from the taxes levied hereunder;
13 (2) Contributions by police officers under Section
14 3-125.1;
15 (3) All moneys accumulated by the municipality under
16 any previous legislation establishing a fund for the
17 benefit of disabled or retired police officers;
18 (4) Donations, gifts or other transfers authorized by
19 this Article.
20 (e) (Blank). The Commission on Government Forecasting and
21Accountability shall conduct a study of all funds established
22under this Article and shall report its findings to the General
23Assembly on or before January 1, 2013. To the fullest extent
24possible, the study shall include, but not be limited to, the
25following:
26 (1) fund balances;

SB3426- 67 -LRB100 20446 MJP 35795 b
1 (2) historical employer contribution rates for each
2 fund;
3 (3) the actuarial formulas used as a basis for employer
4 contributions, including the actual assumed rate of return
5 for each year, for each fund;
6 (4) available contribution funding sources;
7 (5) the impact of any revenue limitations caused by
8 PTELL and employer home rule or non-home rule status; and
9 (6) existing statutory funding compliance procedures
10 and funding enforcement mechanisms for all municipal
11 pension funds.
12(Source: P.A. 99-8, eff. 7-9-15.)
13 (40 ILCS 5/3-125.1) (from Ch. 108 1/2, par. 3-125.1)
14 Sec. 3-125.1. Contributions by police officers. Each
15police officer shall contribute to the Fund pension fund the
16following percentages of salary for the periods stated:
17Beginning July 1, 1909 and prior to July 23, 1943, 1% (except
18that prior to July 1, 1921 not more than one dollar per month
19shall be deducted, and except that beginning July 1, 1921 and
20prior to July 1, 1927 not more than $2 per month shall be
21deducted); beginning July 23, 1943 and prior to July 20, 1949,
223%; beginning July 20, 1949 and prior to July 17, 1959, 5%;
23beginning July 17, 1959 and prior to July 1, 1971, 7%;
24beginning July 1, 1971 and prior to July 1, 1975, 7 1/2%;
25beginning July 1, 1975 and prior to January 1, 1987, 8 1/2%;

SB3426- 68 -LRB100 20446 MJP 35795 b
1beginning January 1, 1987 and prior to January 1, 2001, 9%; and
2beginning January 1, 2001, 9.91%. Such sums shall be paid or
3deducted monthly. Contribution to the self-managed plan shall
4be no less than 10% of salary.
5 "Salary" means the annual salary, including longevity,
6attached to the police officer's rank, as established by the
7municipality's appropriation ordinance, including any
8compensation for overtime which is included in the salary so
9established, but excluding any "overtime pay", "holiday pay",
10"bonus pay", "merit pay", or any other cash benefit not
11included in the salary so established.
12(Source: P.A. 91-939, eff. 2-1-01.)
13 (40 ILCS 5/3-128) (from Ch. 108 1/2, par. 3-128)
14 Sec. 3-128. Board created.
15 (a) This subsection (a) applies until January 1, 2020.
16A board of 5 members shall constitute a board of trustees to
17administer the pension fund and to designate the beneficiaries
18thereof. The board shall be known as the "Board of Trustees of
19the Police Pension Fund" of the municipality.
20 Two members of the board shall be appointed by the mayor or
21president of the board of trustees of the municipality
22involved. The 3rd and 4th members of the board shall be elected
23from the active participants of the pension fund by such active
24participants. The 5th member shall be elected by and from the
25beneficiaries.

SB3426- 69 -LRB100 20446 MJP 35795 b
1 One of the members appointed by the mayor or president of
2the board of trustees shall serve for one year beginning on the
32nd Tuesday in May after the municipality comes under this
4Article. The other appointed member shall serve for 2 years
5beginning on the same date. Their successors shall serve for 2
6years each or until their successors are appointed and
7qualified.
8 (b) The members of the boards of trustees serving on
9December 31, 2019 may continue to exercise the powers of that
10office until March 1, 2020 for the sole purpose of assisting in
11the consolidation of their respective pension funds, but
12subject to the supervision and requirements of the Transition
13Board and the Illinois Municipal Retirement Fund.
14 (c) Beginning January 1, 2020, the Board of Trustees of the
15Illinois Municipal Retirement Fund shall assume the duties of
16the former boards of trustees.
17 The election for board members shall be held biennially on
18the 3rd Monday in April, at such place or places in the
19municipality and under the Australian ballot system and such
20other regulations as shall be prescribed by the appointed
21members of the board.
22 The active pension fund participants shall be entitled to
23vote only for the active participant members of the board. All
24beneficiaries of legal age may vote only for the member chosen
25from among the beneficiaries. No person shall be entitled to
26cast more than one ballot at such election. The term of elected

SB3426- 70 -LRB100 20446 MJP 35795 b
1members shall be 2 years, beginning on the 2nd Tuesday of the
2first May after the election.
3 Upon the death, resignation or inability to act of any
4elected board member, his or her successor shall be elected for
5the unexpired term at a special election, to be called by the
6board and conducted in the same manner as the regular biennial
7election.
8 Members of the board shall neither receive nor have any
9right to receive any salary from the pension fund for services
10performed as trustees in that office.
11(Source: P.A. 83-1440.)
12 (40 ILCS 5/3-134) (from Ch. 108 1/2, par. 3-134)
13 Sec. 3-134. To submit annual list of Fund fund payments. To
14submit annually to the governing body of each participating
15municipality city council or board of trustees at the close of
16the municipality's fiscal year, a list of persons entitled to
17payments from the Fund that are chargeable to the account of
18the participating municipality fund, stating the amount of
19payments, and their purpose, as ordered by the Board board. It
20shall also include items of income accrued to the account of
21the participating municipality fund during the fiscal year. The
22list shall be signed by the secretary and president of the
23Board board, and attested under oath. A resolution or order for
24the payment of money shall not be valid unless approved by a
25majority of the Board board members, and signed by the

SB3426- 71 -LRB100 20446 MJP 35795 b
1president and secretary of the Board board.
2(Source: P.A. 83-1440.)
3 (40 ILCS 5/3-135) (from Ch. 108 1/2, par. 3-135)
4 Sec. 3-135. To invest funds. To determine the limitations
5on the amounts of cash to be invested in order to maintain such
6cash balances as may be deemed advisable to meet current
7annuity, benefit, and expense requirements, and to invest the
8remaining available cash in securities, in accordance with the
9prudent person investment rule and the other provisions of this
10Article. Beginning on the consolidation date, the Article 1 and
111A restrictions on the investment of Article 3 Funds no longer
12apply, except to the extent that they do not also apply to
13Article 7 of this Code. Beginning January 1, 1998, the board
14shall invest funds in accordance with Sections 1-113.1 through
151-113.10 of this Code.
16(Source: P.A. 90-507, eff. 8-22-97.)
17 (40 ILCS 5/3-141) (from Ch. 108 1/2, par. 3-141)
18 Sec. 3-141. Annual report by treasurer. On the 2nd Tuesday
19in May annually through 2020, the treasurer of the municipality
20and all other officials of the municipality who had the custody
21of any pension funds herein provided, shall make a sworn
22statement to the pension board, and to the mayor and council or
23president and board of trustees of the municipality, of all
24moneys received and paid out by them on account of the pension

SB3426- 72 -LRB100 20446 MJP 35795 b
1fund during the year, and of the amount of funds then on hand
2and owing to the pension fund. The final report required under
3this subsection shall be due in May of 2020 and shall include
4the period up to and including the consolidation of the
5municipality's pension fund into the Fund. All surplus then
6remaining with any official other than the treasurer shall be
7paid to the treasurer of the municipality or as directed by the
8Board. Upon demand of the Board pension board, any official
9shall furnish a statement relative to the official method of
10collection or handling of the pension funds. All books and
11records of that official shall be produced at any time by him
12for examination and inspection by the Board board.
13(Source: P.A. 83-1440.)
14 (40 ILCS 5/3-141a new)
15 Sec. 3-141a. Termination of participation by a
16participating municipality. If a participating municipality
17terminates participation because it fails to meet the
18requirements of Section 3-103, it shall pay to the Fund the
19amount equal to any net debit balance in its municipality
20account and any account receivable. Its successors, assigns,
21and transferees of its assets shall be obligated to make this
22payment to the extent of the value of assets transferred to
23them. The Fund shall pay an amount equal to any net credit
24balance to the participating municipality, its successors or
25assigns. Any remaining net debit or credit balance not

SB3426- 73 -LRB100 20446 MJP 35795 b
1collectible or payable shall be transferred to a terminated
2municipality reserve account. The Fund shall pay to each police
3officer of the participating municipality an amount equal to
4his or her credits in the employee reserves. The employees
5shall have no further rights to any benefits from the Fund,
6except that annuities awarded prior to the date of termination
7shall continue to be paid.
8 (40 ILCS 5/3-141b new)
9 Sec. 3-141b. Authorizations.
10 (a) Each participating municipality shall:
11 (1) deduct all normal and additional contributions
12 from each payment of earnings payable to each participating
13 employee who is entitled to any earnings from the
14 municipality, and remit all normal and additional
15 contributions immediately to the Board; and
16 (2) pay to the Board contributions required by this
17 Article.
18 (b) Each participating employee shall, by virtue of the
19payment of contributions to this Fund, receive a vested
20interest in the annuities and benefits provided in this Article
21and in consideration of such vested interest shall be deemed to
22have agreed and authorized the deduction from earnings of all
23contributions payable to this Fund in accordance with this
24Article.
25 (c) Payment of earnings less the amounts of contributions

SB3426- 74 -LRB100 20446 MJP 35795 b
1provided in this Article shall be a full and complete discharge
2of all claims for payment for services rendered by any employee
3during the period covered by any such payment.
4 (40 ILCS 5/4-102.1 new)
5 Sec. 4-102.1. Fund. "Fund" or "pension fund": Until January
61, 2020, a firefighters' pension fund established by a
7municipality under this Article.
8 Beginning January 1, 2020, "Fund" or "pension fund" means
9the Illinois Municipal Retirement Fund with respect to this
10Article; depending on the context, the terms may include one or
11more of those previously established pension funds.
12 (40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
13 Sec. 4-103. Municipality; participating municipality;
14governing body.
15 (a) "Municipality": (1) Any city, township, village or
16incorporated town of 5,000 or more but less than 500,000
17inhabitants, and any fire protection district having any
18full-time paid firefighters, and (2) any city, village,
19incorporated town or township of less than 5,000 inhabitants
20having a full-time paid fire department which adopts the
21provisions of this Article article pursuant to the provisions
22of Section 4-141.
23 (b) The term "participating municipality" means a
24municipality, as defined in subsection (a), that both is

SB3426- 75 -LRB100 20446 MJP 35795 b
1required (or has elected) to and does in fact participate in
2the Fund with respect to its firefighters under this Article.
3 (c) The term "governing body", "city council", or "board of
4trustees" includes the board of trustees of a fire protection
5district and the board of town trustees or other persons
6empowered to draft the tentative budget and appropriation
7ordinance and the electors of such a township acting at the
8annual or special meeting of town electors.
9(Source: P.A. 83-1440.)
10 (40 ILCS 5/4-105) (from Ch. 108 1/2, par. 4-105)
11 Sec. 4-105. Board. "Board": Until January 1, 2020, the The
12"Board of Trustees of the Firefighters' Pension Fund" of a
13municipality as established in subsection (a) of Section 4-121.
14 Beginning January 1, 2020, the Board of Trustees of the
15Illinois Municipal Retirement Fund; depending on the context,
16the term may include the former board of trustees of one or
17more of those previously established pension funds.
18(Source: P.A. 83-1440.)
19 (40 ILCS 5/4-105c)
20 Sec. 4-105c. Participant. "Participant": A firefighter or
21deferred pensioner of the Fund a pension fund, or a beneficiary
22of the Fund pension fund.
23(Source: P.A. 90-507, eff. 8-22-97.)

SB3426- 76 -LRB100 20446 MJP 35795 b
1 (40 ILCS 5/4-105d)
2 Sec. 4-105d. Beneficiary. "Beneficiary": A person
3receiving benefits from the Fund a pension fund, including, but
4not limited to, retired pensioners, disabled pensioners, their
5surviving spouses, minor children, disabled children, and
6dependent parents.
7(Source: P.A. 90-507, eff. 8-22-97.)
8 (40 ILCS 5/4-106.5 new)
9 Sec. 4-106.5. Authorized agent of a participating
10municipality.
11 (a) Each participating municipality shall appoint an
12authorized agent who shall have the powers and duties set forth
13in this Section. In the absence of such an appointment, the
14duties of the authorized agent shall devolve upon the clerk or
15secretary of the municipality. The authorized agent may be the
16same person appointed as the authorized agent under Section
177-135.
18 (b) The authorized agent of the municipality shall have the
19following powers and duties:
20 (1) To certify to the Fund whether or not a given
21 person is authorized to participate in the Fund.
22 (2) To certify to the Fund when a participating
23 employee is on a leave of absence authorized by the
24 municipality.
25 (3) To request the proper officer to cause employee

SB3426- 77 -LRB100 20446 MJP 35795 b
1 contributions to be withheld from salary and promptly
2 transmitted to the Fund.
3 (4) To request the proper officer to cause municipality
4 contributions to be promptly forwarded to the Fund.
5 (5) To forward promptly to all participating employees
6 any communications for such employees from the Fund or the
7 municipality.
8 (6) To forward promptly to the Board of the Fund all
9 applications, claims reports, and other communications
10 delivered to the agent by participating employees.
11 (7) To perform all duties related to the administration
12 of the Fund as requested by the Fund or the governing body
13 of the municipality.
14 (c) The governing body of each participating municipality
15may delegate either or both of the following powers to its
16authorized agent:
17 (1) To file a petition for nomination of an executive
18 trustee of the Fund.
19 (2) To cast the ballot for election of an executive
20 trustee of the Fund.
21 If a governing body does not authorize its agent to perform
22the powers set forth in this Section, they shall be performed
23by the governing body itself, unless the governing body by
24resolution duly certified to the Fund delegates them to some
25other officer or employee.
26 (d) The delivery of any communication or document by an

SB3426- 78 -LRB100 20446 MJP 35795 b
1employee or a municipality to the authorized agent of the
2municipality does not constitute delivery to the Fund.
3 (40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
4 Sec. 4-108. Creditable service.
5 (a) Creditable service is the time served as a firefighter
6of a municipality. In computing creditable service, furloughs
7and leaves of absence without pay exceeding 30 days in any one
8year shall not be counted, but leaves of absence for illness or
9accident regardless of length, and periods of disability for
10which a firefighter received no disability pension payments
11under this Article, shall be counted.
12 (a-5) Upon the consolidation of the firefighters' pension
13funds under this Article into the Illinois Municipal Retirement
14Fund on January 1, 2020, creditable service under any
15firefighters' pension fund shall be deemed to be creditable
16service in the Fund, subject to the following provisions:
17 (1) The consolidation of firefighters' pension funds
18 into the Illinois Municipal Retirement Fund shall not
19 result in the duplication of any service credit based on
20 the same period of service in this or any other pension
21 fund or retirement system subject to this Code.
22 (2) If this Section or any other provision of this
23 Article imposes a limit on the amount of creditable service
24 that may be established for a particular activity or
25 purpose, and prior to consolidation a firefighter has

SB3426- 79 -LRB100 20446 MJP 35795 b
1 established periods of creditable service for that
2 activity or purpose in more than one former firefighters'
3 pension fund under this Article, which periods are within
4 that limitation for each such fund but together exceed that
5 limitation, then upon consolidation all such credit
6 previously established by the firefighter shall be
7 preserved under the Fund, but no additional creditable
8 service for that activity or purpose may be established by
9 that firefighter in the Fund.
10 (3) The consolidation of firefighters' pension funds
11 into the Illinois Municipal Retirement Fund shall not
12 entitle any person or pension fund to a refund of any
13 contribution or payment previously paid or transferred in
14 order to establish or transfer creditable service under
15 this Article.
16 (b) Furloughs and leaves of absence of 30 days or less in
17any one year may be counted as creditable service, if the
18firefighter makes the contribution to the Fund fund that would
19have been required had he or she not been on furlough or leave
20of absence. To qualify for this creditable service, the
21firefighter must pay the required contributions to the Fund
22fund not more than 90 days subsequent to the termination of the
23furlough or leave of absence, to the extent that the
24municipality has not made such contribution on his or her
25behalf.
26 (c) Creditable service includes:

SB3426- 80 -LRB100 20446 MJP 35795 b
1 (1) Service in the military, naval or air forces of the
2 United States entered upon when the person was an active
3 firefighter, provided that, upon applying for a permanent
4 pension, and in accordance with the rules of the board the
5 firefighter pays into the Fund fund the amount that would
6 have been contributed had he or she been a regular
7 contributor during such period of service, if and to the
8 extent that the municipality which the firefighter served
9 made no such contributions in his or her behalf. The total
10 amount of such creditable service shall not exceed 5 years,
11 except that any firefighter who on July 1, 1973 had more
12 than 5 years of such creditable service shall receive the
13 total amount thereof as of that date.
14 (1.5) Up to 24 months of service in the military,
15 naval, or air forces of the United States that was served
16 prior to employment by a municipality or fire protection
17 district as a firefighter. To receive the credit for the
18 military service prior to the employment as a firefighter,
19 the firefighter must apply in writing to the Fund fund and
20 must make contributions to the Fund fund equal to (i) the
21 employee contributions that would have been required had
22 the service been rendered as a member, plus (ii) an amount
23 determined by the Fund fund to be equal to the employer's
24 normal cost of the benefits accrued for that military
25 service, plus (iii) interest at the prescribed rate
26 actuarially assumed rate provided by the Department of

SB3426- 81 -LRB100 20446 MJP 35795 b
1 Financial and Professional Regulation, compounded annually
2 from the first date of membership in the Fund fund to the
3 date of payment on items (i) and (ii). The changes to this
4 paragraph (1.5) made by Public Act 95-1056 this amendatory
5 Act of the 95th General Assembly apply only to
6 participating employees in service on or after April 10,
7 2009 (its effective date).
8 (2) Service prior to July 1, 1976 by a firefighter
9 initially excluded from participation by reason of age who
10 elected to participate and paid the required contributions
11 for such service.
12 (3) Up to 8 years of service by a firefighter as an
13 officer in a statewide firefighters' association when he is
14 on a leave of absence from a municipality's payroll,
15 provided that (i) the firefighter has at least 10 years of
16 creditable service as an active firefighter, (ii) the
17 firefighter contributes to the Fund fund the amount that he
18 would have contributed had he remained an active member of
19 the Fund fund, (iii) the employee or statewide firefighter
20 association contributes to the Fund fund an amount equal to
21 the employer's required contribution as determined by the
22 board, and (iv) for all leaves of absence under this
23 subdivision (3), including those beginning before January
24 5, 2012 (the effective date of Public Act 97-651) this
25 amendatory Act of the 97th General Assembly, the
26 firefighter continues to remain in sworn status, subject to

SB3426- 82 -LRB100 20446 MJP 35795 b
1 the professional standards of the public employer or those
2 terms established in statute.
3 (4) Time spent as an on-call fireman for a
4 municipality, calculated at the rate of one year of
5 creditable service for each 5 years of time spent as an
6 on-call fireman, provided that (i) the firefighter has at
7 least 18 years of creditable service as an active
8 firefighter, (ii) the firefighter spent at least 14 years
9 as an on-call firefighter for the municipality, (iii) the
10 firefighter applies for such creditable service within 30
11 days after August 23, 1989 (the effective date of Public
12 Act 86-273) this amendatory Act of 1989, (iv) the
13 firefighter contributes to the Fund an amount representing
14 employee contributions for the number of years of
15 creditable service granted under this subdivision (4),
16 based on the salary and contribution rate in effect for the
17 firefighter at the date of entry into the Fund, to be
18 determined by the board, and (v) not more than 3 years of
19 creditable service may be granted under this subdivision
20 (4).
21 Except as provided in Section 4-108.5, creditable
22 service shall not include time spent as a volunteer
23 firefighter, whether or not any compensation was received
24 therefor. The change made in this Section by Public Act
25 83-0463 is intended to be a restatement and clarification
26 of existing law, and does not imply that creditable service

SB3426- 83 -LRB100 20446 MJP 35795 b
1 was previously allowed under this Article for time spent as
2 a volunteer firefighter.
3 (5) Time served between July 1, 1976 and July 1, 1988
4 in the position of protective inspection officer or
5 administrative assistant for fire services, for a
6 municipality with a population under 10,000 that is located
7 in a county with a population over 3,000,000 and that
8 maintains a firefighters' pension fund under this Article,
9 if the position included firefighting duties,
10 notwithstanding that the person may not have held an
11 appointment as a firefighter, provided that application is
12 made to the pension fund within 30 days after November 19,
13 1991 (the effective date of Public Act 87-794) this
14 amendatory Act of 1991, and the corresponding
15 contributions are paid for the number of years of service
16 granted, based upon the salary and contribution rate in
17 effect for the firefighter at the date of entry into the
18 pension fund, as determined by the Board.
19 (6) Service before becoming a participant by a
20 firefighter initially excluded from participation by
21 reason of age who becomes a participant under the amendment
22 to Section 4-107 made by Public Act 87-1265 this amendatory
23 Act of 1993 and pays the required contributions for such
24 service.
25 (7) Up to 3 years of time during which the firefighter
26 receives a disability pension under Section 4-110,

SB3426- 84 -LRB100 20446 MJP 35795 b
1 4-110.1, or 4-111, provided that (i) the firefighter
2 returns to active service after the disability for a period
3 at least equal to the period for which credit is to be
4 established and (ii) the firefighter makes contributions
5 to the Fund fund based on the rates specified in Section
6 4-118.1 and the salary upon which the disability pension is
7 based. These contributions may be paid at any time prior to
8 the commencement of a retirement pension. The firefighter
9 may, but need not, elect to have the contributions deducted
10 from the disability pension or to pay them in installments
11 on a schedule approved by the board. If not deducted from
12 the disability pension, the contributions shall include
13 interest at the rate of 6% per year, compounded annually,
14 from the date for which service credit is being established
15 to the date of payment. If contributions are paid under
16 this subdivision (c)(7) in excess of those needed to
17 establish the credit, the excess shall be refunded. This
18 subdivision (c)(7) applies to persons receiving a
19 disability pension under Section 4-110, 4-110.1, or 4-111
20 on the effective date of this amendatory Act of the 91st
21 General Assembly, as well as persons who begin to receive
22 such a disability pension after that date.
23 (8) Up to 6 years of service as a police officer and
24 participant in an Article 3 police pension fund
25 administered by the unit of local government that employs
26 the firefighter under this Article, provided that the

SB3426- 85 -LRB100 20446 MJP 35795 b
1 service has been transferred to, and the required payment
2 received by, the Article 4 fund in accordance with Section
3 3-110.12 of this Code.
4(Source: P.A. 100-544, eff. 11-8-17.)
5 (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
6 Sec. 4-118. Financing; tax.
7 (a) The governing body city council or the board of
8trustees of a participating the municipality shall annually
9levy a tax upon all the taxable property of the municipality at
10the rate on the dollar which will produce an amount which, when
11added to the deductions from the salaries or wages of
12firefighters and revenues available from other sources, will
13equal a sum sufficient to meet the annual actuarial
14requirements of the account of the participating municipality
15pension fund, as determined by an enrolled actuary employed by
16the Fund Illinois Department of Insurance or by an enrolled
17actuary retained by the pension fund or municipality. For the
18purposes of this Section, the annual actuarial requirements of
19the account of the participating municipality pension fund are
20equal to (1) the normal cost of benefits attributable to the
21participating municipality and its firefighters, as determined
22by an enrolled actuary employed by the Fund of the pension
23fund, or 17.5% of the salaries and wages to be paid to
24firefighters for the year involved, whichever is greater, plus
25(2) an annual amount sufficient to bring the total assets of

SB3426- 86 -LRB100 20446 MJP 35795 b
1the account of the participating municipality pension fund up
2to 90% of the total actuarial liabilities of the account of the
3participating municipality pension fund by the end of municipal
4fiscal year 2040, as annually updated and determined by an
5enrolled actuary employed by the Fund Illinois Department of
6Insurance or by an enrolled actuary retained by the pension
7fund or the municipality. In making these determinations, the
8required minimum employer contribution shall be calculated
9each year as a level percentage of payroll over the years
10remaining up to and including fiscal year 2040 and shall be
11determined under the projected unit credit actuarial cost
12method. The amount to be applied towards the amortization of
13the unfunded accrued liability in any year shall not be less
14than the annual amount required to amortize the unfunded
15accrued liability, including interest, as a level percentage of
16payroll over the number of years remaining in the 40 year
17amortization period.
18 (a-5) For purposes of determining the required employer
19contribution to the Fund a pension fund, the value of the
20pension fund's assets of the account of the participating
21municipality shall be equal to the actuarial value of the
22pension fund's assets of the account of the participating
23municipality, which shall be calculated as follows:
24 (1) (Blank). On March 30, 2011, the actuarial value of
25 a pension fund's assets shall be equal to the market value
26 of the assets as of that date.

SB3426- 87 -LRB100 20446 MJP 35795 b
1 (2) In determining the actuarial value of the pension
2 fund's assets of the account of the participating
3 municipality for fiscal years after March 30, 2011, any
4 actuarial gains or losses from investment return incurred
5 in a fiscal year shall be recognized in equal annual
6 amounts over the 5-year period following that fiscal year.
7 (b) The tax shall be levied and collected in the same
8manner as the general taxes of the municipality, and shall be
9in addition to all other taxes now or hereafter authorized to
10be levied upon all property within the municipality, and in
11addition to the amount authorized to be levied for general
12purposes, under Section 8-3-1 of the Illinois Municipal Code or
13under Section 14 of the Fire Protection District Act. The tax
14shall be forwarded directly to the treasurer of the Fund board
15within 30 business days of receipt by the county (or, in the
16case of amounts added to the tax levy under subsection (f),
17used by the municipality to pay the employer contributions
18required under subsection (b-1) of Section 15-155 of this
19Code).
20 (b-5) If a participating municipality fails to transmit to
21the Fund fund contributions required of it under this Article
22for more than 90 days after the payment of those contributions
23is due, the Fund fund may, after giving notice to the
24municipality, certify to the State Comptroller the amounts of
25the delinquent payments in accordance with any applicable rules
26of the Comptroller, and the Comptroller must, beginning in

SB3426- 88 -LRB100 20446 MJP 35795 b
1fiscal year 2016, deduct and remit to the Fund, for credit to
2the account of the participating municipality, fund the
3certified amounts or a portion of those amounts from the
4following proportions of payments of State funds to the
5municipality:
6 (1) in fiscal year 2016, one-third of the total amount
7 of any payments of State funds to the municipality;
8 (2) in fiscal year 2017, two-thirds of the total amount
9 of any payments of State funds to the municipality; and
10 (3) in fiscal year 2018 and each fiscal year
11 thereafter, the total amount of any payments of State funds
12 to the municipality.
13 The State Comptroller may not deduct from any payments of
14State funds to the municipality more than the amount of
15delinquent payments certified to the State Comptroller by the
16Fund fund.
17 (c) The Board board shall make available to the membership
18and the general public for inspection and copying at reasonable
19times the most recent Actuarial Valuation Balance Sheet and Tax
20Levy Requirement issued to the Fund fund by the Department of
21Insurance.
22 (d) (Blank). The firefighters' pension fund shall consist
23of the following moneys which shall be set apart by the
24treasurer of the municipality: (1) all moneys derived from the
25taxes levied hereunder; (2) contributions by firefighters as
26provided under Section 4-118.1; (3) all rewards in money, fees,

SB3426- 89 -LRB100 20446 MJP 35795 b
1gifts, and emoluments that may be paid or given for or on
2account of extraordinary service by the fire department or any
3member thereof, except when allowed to be retained by
4competitive awards; and (4) any money, real estate or personal
5property received by the board.
6 (e) (Blank). For the purposes of this Section, "enrolled
7actuary" means an actuary: (1) who is a member of the Society
8of Actuaries or the American Academy of Actuaries; and (2) who
9is enrolled under Subtitle C of Title III of the Employee
10Retirement Income Security Act of 1974, or who has been engaged
11in providing actuarial services to one or more public
12retirement systems for a period of at least 3 years as of July
131, 1983.
14 (f) The corporate authorities of a municipality that
15employs a person who is described in subdivision (d) of Section
164-106 may add to the tax levy otherwise provided for in this
17Section an amount equal to the projected cost of the employer
18contributions required to be paid by the municipality to the
19State Universities Retirement System under subsection (b-1) of
20Section 15-155 of this Code.
21 (g) (Blank). The Commission on Government Forecasting and
22Accountability shall conduct a study of all funds established
23under this Article and shall report its findings to the General
24Assembly on or before January 1, 2013. To the fullest extent
25possible, the study shall include, but not be limited to, the
26following:

SB3426- 90 -LRB100 20446 MJP 35795 b
1 (1) fund balances;
2 (2) historical employer contribution rates for each
3 fund;
4 (3) the actuarial formulas used as a basis for employer
5 contributions, including the actual assumed rate of return
6 for each year, for each fund;
7 (4) available contribution funding sources;
8 (5) the impact of any revenue limitations caused by
9 PTELL and employer home rule or non-home rule status; and
10 (6) existing statutory funding compliance procedures
11 and funding enforcement mechanisms for all municipal
12 pension funds.
13(Source: P.A. 99-8, eff. 7-9-15.)
14 (40 ILCS 5/4-118.1) (from Ch. 108 1/2, par. 4-118.1)
15 Sec. 4-118.1. Contributions by firefighters.
16 (a) Beginning January 1, 1976 and until August 6, 1999 (the
17effective date of Public Act 91-466) this amendatory Act of the
1891st General Assembly, each firefighter shall contribute to the
19pension fund 6 3/4% of salary towards the cost of his or her
20pension. Beginning August 6, 1999 on the effective date of this
21amendatory Act of the 91st General Assembly, each firefighter
22shall contribute to the pension fund 6.955% of salary towards
23the cost of his or her pension.
24 (b) In addition, beginning January 1, 1976, each
25firefighter shall contribute 1% of salary toward the cost of

SB3426- 91 -LRB100 20446 MJP 35795 b
1the increase in pension provided in Section 4-109.1; beginning
2January 1, 1987, such contribution shall be 1.5% of salary;
3beginning July 1, 2004, the contribution shall be 2.5% of
4salary.
5 (c) Beginning on July 1, 2004 (the effective date of Public
6Act 93-689) this amendatory Act of the 93rd General Assembly,
7each firefighter who elects to receive a pension under Section
84-109.3 and who has participated in at least one other pension
9fund under this Article for a period of at least one year shall
10contribute an additional 1.0% of salary toward the cost of the
11increase in pensions provided in Section 4-109.3; except that
12beginning January 1, 2020, no additional contributions shall be
13paid under this subsection (c).
14 In the event that a firefighter does not elect to receive a
15retirement pension provided under Section 4-109.3 from one or
16more of the pension funds under this Article in which the
17firefighter has credit, he or she shall, upon withdrawal from
18the last pension fund as defined in Section 4-109.3, be
19entitled to receive, from each such fund to which he or she has
20paid additional contributions under this subsection (c) and
21from which he or she does not receive a refund under Section
224-116, a refund of those contributions without interest.
23Beginning January 1, 2020, however, such refunds shall be
24payable from the Illinois Municipal Retirement Fund and
25chargeable to the appropriate municipal accounts and reserves.
26 A refund of total contributions to a particular firefighter

SB3426- 92 -LRB100 20446 MJP 35795 b
1pension fund under Section 4-116 shall include any refund of
2additional contributions paid to that fund under this
3subsection (c), but a firefighter who accepts a refund from a
4pension fund under Section 4-116 is thereafter ineligible to
5receive a pension provided under Section 4-109.3 from that
6fund. A firefighter who meets the eligibility requirements of
7Section 4-109.3 may receive a pension under Section 4-109.3
8from any pension fund from which the firefighter has not
9received a refund under Section 4-116 or under this subsection
10(c); except that beginning January 1, 2020 (the consolidation
11date), such pensions shall be payable from the Illinois
12Municipal Retirement Fund as provided in Section 4-109.3 and
13chargeable to the appropriate municipal accounts and reserves.
14 (d) "Salary" means the annual salary, including longevity,
15attached to the firefighter's rank, as established by the
16municipality appropriation ordinance, including any
17compensation for overtime which is included in the salary so
18established, but excluding any "overtime pay", "holiday pay",
19"bonus pay", "merit pay", or any other cash benefit not
20included in the salary so established.
21 (e) The contributions shall be deducted and withheld from
22the salary of firefighters.
23(Source: P.A. 93-689, eff. 7-1-04.)
24 (40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)
25 Sec. 4-121. Board created.

SB3426- 93 -LRB100 20446 MJP 35795 b
1 (a) This subsection (a) applies until January 1, 2020.
2There is created in each municipality or fire protection
3district a board of trustees to be known as the "Board of
4Trustees of the Firefighters' Pension Fund". The membership of
5the board for each municipality shall be, respectively, as
6follows: in cities, the treasurer, clerk, marshal or chief
7officer of the fire department, and the comptroller if there is
8one, or if not, the mayor; in each township, village or
9incorporated town, the president of the municipality's board of
10trustees, the village or town clerk, village or town attorney,
11village or town treasurer, and the chief officer of the fire
12department; and in each fire protection district, the president
13and other 2 members of its board of trustees and the marshal or
14chief of its fire department or service, as the case may be;
15and in all the municipalities above designated 3 additional
16persons chosen from their active firefighters and one other
17person who has retired under the Firemen's Pension Fund Act of
181919, or this Article. The Notwithstanding any provision of
19this Section to the contrary, the term of office of each member
20of a board established on or before the 3rd Monday in April,
212006 shall terminate on the 3rd Monday in April, 2006, but all
22incumbent members shall continue to exercise all of the powers
23and be subject to all of the duties of a member of the board
24until all the new members of the board take office.
25 Beginning on the 3rd Monday in April, 2006 and until
26January 1, 2020, the board of trustees for each municipality or

SB3426- 94 -LRB100 20446 MJP 35795 b
1fire protection district shall consist of 5 members. Two
2members of the board shall be appointed by the mayor or
3president of the board of trustees of the municipality or fire
4protection district involved. Two members of the board shall be
5active participants of the pension fund who are elected from
6the active participants of the fund. One member of the board
7shall be a person who is retired under the Firemen's Pension
8Fund Act of 1919 or this Article who is elected from persons
9retired under the Firemen's Pension Fund Act of 1919 or this
10Article.
11 For the purposes of this Section, a firefighter receiving a
12disability pension shall be considered a retired firefighter.
13In the event that there are no retired firefighters under the
14Fund or if none is willing to serve on the board, then an
15additional active firefighter shall be elected to the board in
16lieu of the retired firefighter that would otherwise be
17elected.
18 If the regularly constituted fire department of a
19municipality is dissolved and Section 4-106.1 is not
20applicable, the board shall continue to exist and administer
21the Fund so long as there continues to be any annuitant or
22deferred pensioner in the Fund. In such cases, elections shall
23continue to be held as specified in this Section, except that:
24(1) deferred pensioners shall be deemed to be active members
25for the purposes of such elections; (2) any otherwise
26unfillable positions on the board, including ex officio

SB3426- 95 -LRB100 20446 MJP 35795 b
1positions, shall be filled by election from the remaining
2firefighters and deferred pensioners of the Fund, to the extent
3possible; and (3) if the membership of the board falls below 3
4persons, the Illinois Director of Insurance or his designee
5shall be deemed a member of the board, ex officio.
6 (b) The members of the boards of trustees serving on
7December 31, 2019 may continue to exercise the powers of that
8office until March 1, 2020 for the sole purpose of assisting in
9the consolidation of their respective pension funds, but
10subject to the supervision and requirements of the Transition
11Board.
12 (c) Beginning January 1, 2020, the Board of Trustees of the
13Illinois Municipal Retirement Fund shall assume the duties of
14the former boards of trustees.
15 The members chosen from the active and retired firefighters
16shall be elected by ballot at elections to be held on the 3rd
17Monday in April of the applicable years under the Australian
18ballot system, at such place or places, in the municipality,
19and under such regulations as shall be prescribed by the board.
20 No person shall cast more than one vote for each candidate
21for whom he or she is eligible to vote. In the elections for
22board members to be chosen from the active firefighters, all
23active firefighters and no others may vote. In the elections
24for board members to be chosen from retired firefighters, the
25retired firefighters and no others may vote.
26 Each member of the board so elected shall hold office for a

SB3426- 96 -LRB100 20446 MJP 35795 b
1term of 3 years and until his or her successor has been duly
2elected and qualified.
3 The board shall canvass the ballots and declare which
4persons have been elected and for what term or terms
5respectively. In case of a tie vote between 2 or more
6candidates, the board shall determine by lot which candidate or
7candidates have been elected and for what term or terms
8respectively. In the event of the failure, resignation, or
9inability to act of any board member, a successor shall be
10elected for the unexpired term at a special election called by
11the board and conducted in the same manner as a regular
12election.
13 The board shall elect annually from its members a president
14and secretary.
15 Board members shall not receive or have any right to
16receive any salary from a pension fund for services performed
17as board members.
18(Source: P.A. 100-201, eff. 8-18-17.)
19 (40 ILCS 5/4-124) (from Ch. 108 1/2, par. 4-124)
20 Sec. 4-124. To enforce contributions. To assess each
21firefighter the contributions required under Section 4-118.1.
22The contributions deducted from salaries, together with all
23interest accruing thereon, shall be paid promptly placed by the
24treasurer of the municipality as ex officio treasurer of the
25board, to the Treasurer credit of the Fund pension fund,

SB3426- 97 -LRB100 20446 MJP 35795 b
1subject to the order of the Board board.
2(Source: P.A. 83-1440.)
3 (40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
4 Sec. 4-128. To invest funds. To determine the limitations
5on the amounts of cash to be invested in order to maintain such
6cash balances as may be deemed advisable to meet current
7annuity, benefit, and expense requirements, and to invest the
8remaining available cash in securities, in accordance with the
9prudent person investment rule and the other provisions of this
10Article. Beginning on the consolidation date, the Article 1 and
111A restrictions on the investment of Article 4 Funds no longer
12apply, to the extent that they do not also apply to Article 7
13of this Code. Beginning January 1, 1998, the board shall invest
14funds in accordance with Sections 1-113.1 through 1-113.10 of
15this Code.
16(Source: P.A. 90-507, eff. 8-22-97.)
17 (40 ILCS 5/4-130.1 new)
18 Sec. 4-130.1. Termination of participation by a
19participating municipality. If a participating municipality
20terminates participation because it fails to meet the
21requirements of Section 3-103, it shall pay to the Fund the
22amount equal to any net debit balance in its municipality
23account and any account receivable. Its successors, assigns,
24and transferees of its assets shall be obligated to make this

SB3426- 98 -LRB100 20446 MJP 35795 b
1payment to the extent of the value of assets transferred to
2them. The Fund shall pay an amount equal to any net credit
3balance to the participating municipality, its successors or
4assigns. Any remaining net debit or credit balance not
5collectible or payable shall be transferred to a terminated
6municipality reserve account. The Fund shall pay to each
7firefighter of the participating municipality an amount equal
8to his or her credits in the employee reserves. The employees
9shall have no further rights to any benefits from the Fund,
10except that annuities awarded prior to the date of termination
11shall continue to be paid.
12 (40 ILCS 5/4-130.3 new)
13 Sec. 4-130.3. Authorizations.
14 (a) Each participating municipality shall:
15 (1) Deduct all normal and additional contributions
16 from each payment of earnings payable to each participating
17 employee who is entitled to any earnings from the
18 municipality, and remit all normal and additional
19 contributions immediately to the Board; and
20 (2) Pay to the Board contributions required by this
21 Article.
22 (b) Each participating employee shall, by virtue of the
23payment of contributions to this Fund, receive a vested
24interest in the annuities and benefits provided in this Article
25and in consideration of such vested interest shall be deemed to

SB3426- 99 -LRB100 20446 MJP 35795 b
1have agreed and authorized the deduction from earnings of all
2contributions payable to this Fund in accordance with this
3Article.
4 (c) Payment of earnings less the amounts of contributions
5provided in this Article shall be a full and complete discharge
6of all claims for payment for services rendered by any employee
7during the period covered by any such payment.
8 (40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
9 Sec. 4-134. Report for tax levy.
10 (a) The Board board shall report to the governing body of
11each participating city council or board of trustees of the
12municipality on the condition of the Fund pension fund at the
13end of its most recently completed fiscal year. The report
14shall be made prior to the council or board meeting held for
15appropriating and levying taxes for the year for which the
16report is made.
17 The pension board in the report shall certify and provide
18the following information to the city council or board of
19trustees of the municipality:
20 (1) the total assets of the fund and the their current
21 market value of those assets;
22 (2) the estimated receipts during the next succeeding
23 fiscal year from deductions from the salaries or wages of
24 firefighters, and from all other sources;
25 (3) the estimated amount necessary during the fiscal

SB3426- 100 -LRB100 20446 MJP 35795 b
1 year to meet the annual actuarial requirements of the
2 pension fund as provided in Sections 4-118 and 4-120;
3 (4) the total net income received from investment of
4 assets along with the assumed investment return and actual
5 investment return received by the Fund fund during its most
6 recently completed fiscal year compared to the total net
7 income, assumed investment return, and actual investment
8 return received during the preceding fiscal year;
9 (5) the increase in employer pension contributions
10 that results from the implementation of the provisions of
11 Public Act 93-689 this amendatory Act of the 93rd General
12 Assembly;
13 (6) the total number of active employees who are
14 financially contributing to the fund;
15 (7) the total amount that was disbursed in benefits
16 during the fiscal year, including the number of and total
17 amount disbursed to (i) annuitants in receipt of a regular
18 retirement pension, (ii) recipients being paid a
19 disability pension, and (iii) survivors and children in
20 receipt of benefits;
21 (8) the funded ratio of the Fund fund; and
22 (9) the unfunded liability carried by the Fund fund,
23 along with an actuarial explanation of the unfunded
24 liability. ; and
25 (10) the investment policy of the pension board under
26 the statutory investment restrictions imposed on the fund.

SB3426- 101 -LRB100 20446 MJP 35795 b
1 Before the Board pension board makes its report, the Fund
2municipality shall have the assets of the Fund fund and their
3current market value verified by an independent certified
4public accountant of its choice.
5 (b) A participating The municipality is authorized to
6publish the report submitted under this Section. This
7publication may be made, without limitation, by publication in
8a local newspaper of general circulation in the municipality or
9by publication on the municipality's Internet website. If the
10municipality publishes the report, then that publication must
11include all of the information relating to that municipality
12submitted by the Board pension board under subsection (a).
13(Source: P.A. 95-950, eff. 8-29-08.)
14 (40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)
15 Sec. 7-175. Board elections.
16 (a) During the period beginning on August 1 and ending on
17September 15 of each year the board shall accept nominations of
18candidates for election to the trusteeships for terms beginning
19the next January 1, new trusteeships or vacancies to be filled
20by election.
21 (b) All nominations shall be by petition. Three petitions
22for an executive trustee shall be signed by governing bodies of
23contributing participating municipalities or
24instrumentalities.
25 A petition for an employee trustee shall be signed by at

SB3426- 102 -LRB100 20446 MJP 35795 b
1least 350 participating employees who were participants during
2July of the current year and who, if their employment status
3remained unchanged, would be eligible to vote for such
4candidate at the following election.
5 A petition for an annuitant trustee shall be signed by at
6least 100 persons who were annuitants of the Fund during July
7of the current year and who, if their annuitant status remains
8unchanged, would be eligible to vote for the candidate at the
9following election.
10 (c) A separate ballot shall be used for each class of
11trustee and the names of all candidates properly nominated in
12petitions received by the board shall be placed in alphabetical
13order upon the proper ballot. Where two employee trustees are
14elected to a full term in the same year, there shall be one
15election for the two trusteeships and the two candidates
16getting the highest number of votes shall be elected.
17 (d) At any election, each contributing participating
18municipality and participating instrumentality and each
19contributing participating employee employed by such
20participating municipality or participating instrumentality
21during September of any year, shall be entitled to vote as
22follows:
23 1. The governing body of each such participating
24 municipality and participating instrumentality shall have
25 one vote at any election in which an executive trustee is
26 to be elected, and may cast such vote for any candidate on

SB3426- 103 -LRB100 20446 MJP 35795 b
1 the executive trustee ballot.
2 2. Each participating employee shall have one vote at
3 any election in which an employee trustee is to be elected,
4 and may cast such vote for any candidate on the employee
5 trustee ballot.
6 3. Each annuitant of the Fund shall have one vote at
7 any election in which an annuitant trustee is to be
8 elected, and may cast that vote for any candidate on the
9 annuitant trustee ballot.
10 4. A vote may be cast for a person not on the ballot by
11 writing in his or her name.
12 (e) The election shall be by ballot pursuant to the rules
13and regulations established by the board and shall be completed
14by December 31 of the year. The results shall be entered in the
15minutes of the meeting of the board following the tally of
16votes.
17 (f) In case of a tie vote, the candidate employed by or
18retired from the participating municipality or participating
19instrumentality having the greatest number of participating
20employees at the time shall be elected.
21 (g) Notwithstanding any other provision of this Article, if
22only one candidate is properly nominated in petitions received
23by the Board, that candidate shall be deemed the winner. In the
24case of 2 employee trustees elected to a full term in the same
25year, if only 2 candidates are properly nominated in petitions
26received by the Board, those 2 candidates shall both be deemed

SB3426- 104 -LRB100 20446 MJP 35795 b
1winners. If a candidate is deemed a winner under this
2paragraph, no election under this Section or Section 7-175.1
3shall be required.
4 (h) For the purposes of this Section, "annuitant" includes
5a person who receives an annuity pursuant to Article 3 or 4.
6 For the purposes of this Section, "contributing
7participating municipality" includes a municipality that
8participates in Article 3 or 4.
9 For the purposes of this Section, "participating employee"
10includes a police officer under Article 3 or a firefighter
11under Article 4.
12(Source: P.A. 98-932, eff. 8-15-14.)
13 (40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)
14 Sec. 7-175.1. Election of employee and annuitant trustees.
15 (a) The board shall prepare and send ballots and ballot
16envelopes to the employees, including police officers under
17Article 3 and firefighters under Article 4, and annuitants
18eligible to vote as of September of that year. The ballots
19shall contain the names of all candidates in alphabetical order
20and an appropriate place where a name may be written in on the
21ballot. The ballot envelope shall have on the outside a form of
22certificate stating that the person voting the ballot is a
23participating employee or annuitant entitled to vote.
24 (b) Employees and annuitants, upon receipt of the ballot,
25shall vote the ballot and place it in the ballot envelope, seal

SB3426- 105 -LRB100 20446 MJP 35795 b
1the envelope, execute the certificate thereon and return the
2ballot to the Fund.
3 (c) The board shall set a final date for ballot return, and
4ballots received prior to that date in a ballot envelope with a
5properly executed certificate and properly voted, shall be
6valid ballots.
7 (d) The board shall set a day for counting the ballots and
8name judges and clerks of election to conduct the count of
9ballots, and shall make any rules and regulations necessary for
10the conduct of the count.
11 (e) No election under this Section shall be required if a
12candidate is deemed the winner under subsection (g) of Section
137-175.
14(Source: P.A. 98-932, eff. 8-15-14.)
15 Section 90. The State Mandates Act is amended by adding
16Section 8.42 as follows:
17 (30 ILCS 805/8.42 new)
18 Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
19of this Act, no reimbursement by the State is required for the
20implementation of any mandate created by this amendatory Act of
21the 100th General Assembly.
22 Section 99. Effective date. This Act takes effect upon
23becoming law, except that Sections 5 and 15 take effect January
241, 2020.

SB3426- 106 -LRB100 20446 MJP 35795 b
1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 200/18-185
4 40 ILCS 5/3-101from Ch. 108 1/2, par. 3-101
5 40 ILCS 5/3-101.1 new
6 40 ILCS 5/3-101.2 new
7 40 ILCS 5/3-106from Ch. 108 1/2, par. 3-106
8 40 ILCS 5/4-101from Ch. 108 1/2, par. 4-101
9 40 ILCS 5/4-101.1 new
10 40 ILCS 5/4-101.2 new
11 40 ILCS 5/4-106from Ch. 108 1/2, par. 4-106
12 40 ILCS 5/7-109from Ch. 108 1/2, par. 7-109
13 40 ILCS 5/7-199.5 new
14 40 ILCS 5/7-199.6 new
15 40 ILCS 5/3-102.1 new
16 40 ILCS 5/3-103from Ch. 108 1/2, par. 3-103
17 40 ILCS 5/3-103.9 new
18 40 ILCS 5/3-105from Ch. 108 1/2, par. 3-105
19 40 ILCS 5/3-108.2
20 40 ILCS 5/3-108.3
21 40 ILCS 5/3-110from Ch. 108 1/2, par. 3-110
22 40 ILCS 5/3-110.7
23 40 ILCS 5/3-125from Ch. 108 1/2, par. 3-125
24 40 ILCS 5/3-125.1from Ch. 108 1/2, par. 3-125.1
25 40 ILCS 5/3-128from Ch. 108 1/2, par. 3-128

SB3426- 107 -LRB100 20446 MJP 35795 b