Bill Text: IL HB0144 | 2011-2012 | 97th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Allows the corporate authorities of a municipality, by resolution or ordinance, to dissolve the downstate police or firefighter pension funds established by the municipality if an independent auditor has certified to the authorities that the funds have no liabilities, participants, or beneficiaries entitled to benefits. Requires the corporate authorities of the municipality to reestablish those funds if a police officer or firefighter of the municipality seeks to establish service credit in the fund or if reestablishment of the fund is required upon a former police officer or firefighter's reinstatement of creditable service. Suspends the duty of the corporate authorities of a municipality to establish and administer a downstate police or firefighter pension fund while the fund is dissolved. Requires the Public Pension Division of the Department of Insurance to adopt corresponding procedural rules.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2011-07-14 - Public Act . . . . . . . . . 97-0099 [HB0144 Detail]

Download: Illinois-2011-HB0144-Enrolled.html

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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Sections 3-101, 4-101, and 4-106.1 and adding Section 3-144.6
as follows:
(40 ILCS 5/3-101) (from Ch. 108 1/2, par. 3-101)
Sec. 3-101. Creation of fund. In each municipality, as
defined in Section 3-103, the city council or the board of
trustees, as the case may be, shall establish and administer a
police pension fund, as prescribed in this Article, for the
benefit of its police officers and of their surviving spouses,
children, and certain other dependents. The duty of the
corporate authorities of a municipality to establish and
administer a police pension fund shall be suspended during any
period during which the fund is dissolved under Section 3-144.6
of this Code.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-144.6 new)
Sec. 3-144.6. Dissolution and reestablishment of inactive
police pension funds. The corporate authorities of a
municipality for which a pension fund has been established

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under this Article may, by resolution or ordinance, dissolve
the fund if an independent auditor has certified to the
authorities that the fund has no liabilities, participants, or
beneficiaries entitled to benefits, and the authorities shall
reestablish the fund if a police officer of the municipality
seeks to establish service credit in the fund or if
reestablishment of the fund is required upon a former police
officer's reinstatement of creditable service under subsection
(b) of Section 3-110.7 of this Code.
The Public Pension Division of the Department of Insurance
shall adopt rules regarding the process and procedures for (i)
dissolving a pension fund under this Section and (ii)
redistributing assets and reestablishing the fund if
reestablishment of the fund is necessary.
(40 ILCS 5/4-101) (from Ch. 108 1/2, par. 4-101)
Sec. 4-101. Creation of fund. In each municipality as
defined in Section 4-103, the city council or the board of
trustees, as the case may be, shall establish and administer a
firefighters' pension fund as prescribed in this Article, for
the benefit of its firefighters and of their surviving spouses,
children and certain other dependents. The duty of the
corporate authorities of a municipality to establish and
administer a firefighters' pension fund shall be suspended
during any period during which the fund is dissolved under
subsection (c) of Section 4-106.1 of this Code.

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(Source: P.A. 83-1440.)
(40 ILCS 5/4-106.1) (from Ch. 108 1/2, par. 4-106.1)
Sec. 4-106.1. Discontinuation of fire protection district;
annexation to fire protection district; dissolution and
reestablishment of inactive firefighters' pension funds.
(a) Whenever a fire protection district which has
established a pension fund under this Article is discontinued
under "An Act in Relation to Fire Protection Districts", and
the municipality assuming the obligations of the district is
required to and has established a Firefighters' Pension Fund
under this Article, the assets of the fund established by the
district shall be transferred to the "Board of Trustees of the
Firefighters Pension Fund" of the municipality. The
Firefighter's Pension Fund of the municipality shall assume all
accrued liabilities of the district's pension fund, and all
accrued rights, benefits and future expectancies of the
members, retired employees and beneficiaries of the district's
fund shall remain unimpaired.
(b) If a municipal fire department for which a pension fund
has been established under this Article is discontinued and the
affected territory is annexed by a fire protection district,
and the fire protection district is required to and has
established a firefighters' pension fund under this Article,
then the assets of the firefighters' pension fund established
by the municipality shall be transferred to the board of

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trustees of the pension fund of the fire protection district.
The firefighters' pension fund of the fire protection district
shall assume all liabilities of the municipality's
firefighters' pension fund, and all of the accrued rights,
benefits, and future expectancies of the members, retired
employees, and beneficiaries of the municipality's
firefighters' pension fund shall remain unimpaired.
(c) The corporate authorities of a municipality for which a
pension fund has been established under this Article may, by
resolution or ordinance, dissolve the fund if an independent
auditor has certified to the authorities that the fund has no
liabilities, participants, or beneficiaries entitled to
benefits, and the authorities shall reestablish the fund if a
firefighter of the municipality seeks to establish service
credit in the fund or if reestablishment of the fund is
required upon a former firefighter's reinstatement of
creditable service under subsection (g) of Section 4-109.3 of
this Code.
The Public Pension Division of the Department of Insurance
shall adopt rules regarding the process and procedures for (i)
dissolving a pension fund under this Section and (ii)
redistributing assets and reestablishing the fund if
reestablishment of the fund is necessary.
(Source: P.A. 93-123, eff. 7-10-03.)
Section 90. The State Mandates Act is amended by adding

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Section 8.35 as follows:
(30 ILCS 805/8.35 new)
Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.