Bill Text: IL SB1705 | 2009-2010 | 96th General Assembly | Enrolled

---

Bill Title: Amends the Chicago Firefighters Article of the Illinois Pension Code. Requires that a disabled fireman who is receiving a duty, occupational disease, or ordinary disability benefit be examined on a periodic basis as determined by the Board, but at least once a year (was, at least once a year). Provides that if a fireman refuses to submit to such medical, surgical, or hospital treatment as is reasonably essential to promote his recovery from disability, he shall have no further right to receive the benefit. Provides a window during which a fireman who re-entered service and failed to repay his refund within the required 2-year period may repay the refund. Provides that a fireman who has failed to repay any refund due to the Fund after re-entering service shall be treated as a new employee and shall only receive service credit from the date that he has re-entered service as a new employee. Provides that, in those cases where the injury or death for which a disability or death benefit is payable was caused under circumstances creating a legal liability on the part of some person or entity to pay damages to the fireman, then legal proceedings may be taken against such other person or entity to recover damages notwithstanding the Fund's payment of or liability to pay disability or death benefits. Provides that the Fund may join in any action brought by the disabled fireman or his personal representative. Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2009-08-25 - Public Act . . . . . . . . . 96-0727 [SB1705 Detail]

Download: Illinois-2009-SB1705-Enrolled.html

---

SB1705 Enrolled LRB096 09049 AMC 19189 b
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 4-108.6, 5-234, 6-153, 6-159, 6-210.1, 6-210.2, and
8-172.1 and by adding Sections 6-227, 6-228, and 9-121.18 as
follows:
(40 ILCS 5/4-108.6 new)
Sec. 4-108.6. Transfer of creditable service to the
Firemen's Annuity and Benefit Fund of Chicago.
(a) Until January 1, 2010, any active member of the
Firemen's Annuity and Benefit Fund of Chicago may apply for
transfer of up to 10 years of creditable service accumulated in
any pension fund established under this Article to the
Firemen's Annuity and Benefit Fund of Chicago. Such creditable
service shall be transferred only upon payment by such pension
fund to the Firemen's Annuity and Benefit Fund of Chicago of an
amount equal to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of transfer;
(2) employer contributions in an amount equal to the
amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to

SB1705 Enrolled - 2 - LRB096 09049 AMC 19189 b
reinstate service.
Participation in such pension fund as to any credits
transferred under this Section shall terminate on the date of
transfer.
(b) An active member of the Firemen's Annuity and Benefit
Fund of Chicago applying for a transfer of creditable service
under subsection (a) may reinstate credits and creditable
service terminated upon receipt of a refund by payment to the
Firemen's Annuity and Benefit Fund of Chicago of the amount of
the refund with interest thereon at the actuarially assumed
rate, compounded annually, from the date of the refund to the
date of payment.
(40 ILCS 5/5-234) (from Ch. 108 1/2, par. 5-234)
Sec. 5-234. Transfer of credits.
(a) Any police officer who has at least 10 years of
creditable service in the Fund may transfer to this Fund
credits and creditable service accumulated under any other
pension fund or retirement system established under Article 8
or 12 of this Code, by making application and paying to the
Fund before January 1, 1990 the amount by which the employee
contributions that would have been required if he had
participated in this Fund during the period for which credit is
being transferred, plus interest, exceeds the amount actually
transferred from such other fund or system to this Fund under
item (1) of Section 8-226.5 or item (1) of Section 12-127.5.

SB1705 Enrolled - 3 - LRB096 09049 AMC 19189 b
(b) Any police officer who has at least 10 years of
creditable service in the Fund may transfer to this Fund up to
48 months of creditable service accumulated under Article 9 of
this Code as a correctional officer with the county department
of corrections prior to January 1, 1994, by making application
to the Fund within 6 months after the effective date of this
amendatory Act of the 96th General Assembly and by paying to
the Fund an amount to be determined by the Board, equal to (i)
the difference between the amount of employee and employer
contributions transferred to the Fund under Section 9-121.17
and the amounts that would have been contributed had such
contributions been made at the rates applicable to members of
this Fund, plus (ii) interest thereon at the actuarially
assumed rate for each year, compounded annually, from the date
of service to the date of payment.
(Source: P.A. 86-272.)
(40 ILCS 5/6-153) (from Ch. 108 1/2, par. 6-153)
Sec. 6-153. Proof of duty, occupational disease, or
ordinary disability shall be furnished to the Board by at least
one licensed and practicing physician appointed by the Board.
In cases where the Board requires the applicant to obtain a
second opinion, the applicant may select a physician from a
list of qualified licensed and practicing physicians which
shall be established and maintained by the board. The Board may
require other evidence of disability. A disabled fireman who is

SB1705 Enrolled - 4 - LRB096 09049 AMC 19189 b
receiving a duty, occupational disease, or ordinary disability
benefit shall be examined at least once a year or such longer
period as determined by the Board, by one or more licensed and
practicing physicians appointed by the board; however such
annual examination may be waived by the Board if the appointed
physician certifies in writing to the Board that the disability
of the fireman is of such a nature as to render him permanently
disabled and unable ever to return to service.
When the disability ceases, the Board shall discontinue
payment of the benefit and the fireman shall be returned to
service in his proper rank or grade.
(Source: P.A. 86-273.)
(40 ILCS 5/6-159) (from Ch. 108 1/2, par. 6-159)
Sec. 6-159. Refund - Re-entry into service - Repayment of
refund. A fireman who receives a refund, and who subsequently
re-enters the service, shall not thereafter receive, nor shall
his widow or parent or parents receive, any annuity, benefit or
pension under this Article unless he or his widow, or parent or
parents, repays the refund within 2 years after the date of
re-entry into service or by January 1, 2011 2000, whichever is
later, with interest at the actuarially assumed rate of 4% per
annum, compounded annually, from the date the refund was
received to the date such amount is repaid. The change made in
this Section by this amendatory Act of 1995 applies without
regard to whether the fireman was in service on or after the

SB1705 Enrolled - 5 - LRB096 09049 AMC 19189 b
effective date of this amendatory Act of 1995.
A fireman who has failed to repay any refund due to the
Fund under this Article after re-entering service shall be
treated as a new employee and shall only receive service credit
from the date that he has re-entered service as a new employee.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/6-210.1) (from Ch. 108 1/2, par. 6-210.1)
Sec. 6-210.1. Credit for former employment with the fire
department.
(a) Any fireman who (1) accumulated service credit in the
Article 8 fund for service as an employee of the Chicago Fire
Department and (2) has terminated that Article 8 service credit
and received a refund of contributions therefor, may establish
service credit in this Fund for all or any part of that period
of service under the Article 8 fund by making written
application to the Board by January 1, 2010 2005 and paying to
this Fund (i) employee contributions based upon the actual
salary received and the rates in effect for members of this
Fund at the time of such service, plus (ii) the difference
between the amount of employer contributions transferred to the
Fund under Section 8-172.1 and the amounts equal to the
employer's normal cost of contributions had such contributions
been made at the rates in effect for members of this Fund at
the time of such service, plus (iii) interest thereon
calculated as follows:

SB1705 Enrolled - 6 - LRB096 09049 AMC 19189 b
(1) For applications received by the Board before July
14, 1995, interest shall be calculated on the amount of
employee contributions determined under item (i) above, at
the rate of 4% per annum, compounded annually, from the
date of termination of such service to the date of payment.
(2) For applications received by the Board on or after
July 14, 1995 but before the effective date of this
amendatory Act of the 96th General Assembly, interest shall
be calculated on the amount of employee contributions
determined under item (i) above, at the rate of 4% per
annum, compounded annually, from the first date of the
period for which credit is being established under this
subsection (a) to the date of payment.
(3) For applications received by the Board on or after
the effective date of this amendatory Act of the 96th
General Assembly, interest shall be calculated on the
amount of contributions determined under items (i) and (ii)
of this subsection (a), at the actuarially assumed rate for
each year, compounded annually, from the first date of the
period for which credit is being established under this
subsection (a) to the date of payment.
A fireman who (1) retired on or after January 16, 2004 and
on or before the effective date of this amendatory Act of the
93rd General Assembly and (2) files an application to establish
service credit under this subsection (a) before January 1,
2005, shall have his or her pension recalculated prospectively

SB1705 Enrolled - 7 - LRB096 09049 AMC 19189 b
to include the service credit established under this subsection
(a).
(b) A fireman who, at any time during the period 1970
through 1983, was an employee of the Chicago Fire Department
but did not participate in any pension fund subject to this
Code with respect to that employment may establish service
credit in this Fund for all or any part of that employment by
making written application to the Board by January 1, 2010 2005
and paying to this Fund (i) employee contributions based upon
the actual salary received and the rates in effect for members
of this Fund at the time of that employment, plus (ii) the
amounts equal to the employer's normal cost of contributions
had such contributions been made at the rates in effect for
members of this Fund at the time of that employment, plus (iii)
interest thereon calculated at the actuarially assumed rate of
4% per annum, compounded annually, from the first date of the
employment for which credit is being established under this
subsection (b) to the date of payment.
(c) (Blank). A fireman may pay the contributions required
for service credit under this Section established on or after
July 14, 1995 in the form of payroll deductions, in accordance
with such procedures and limitations as may be established by
Board rule and any applicable rules or ordinances of the
employer.
(d) Employer contributions shall be transferred as
provided in Sections 6-210.2 and 8-172.1. The employer shall

SB1705 Enrolled - 8 - LRB096 09049 AMC 19189 b
not be responsible for making any additional employer
contributions for any credit established under this Section.
(Source: P.A. 93-654, eff. 1-16-04; 93-917, eff. 8-12-04.)
(40 ILCS 5/6-210.2)
Sec. 6-210.2. City contributions for paramedics.
Municipality credits computed and credited under Article 8 for
all firemen who (1) accumulated service credit in the Article 8
fund for service as a paramedic, (2) have terminated that
Article 8 service credit and received a refund of
contributions, and (3) are participants in this Article 6 fund
on the effective date of this amendatory Act of the 96th 93rd
General Assembly shall be transferred by the Article 8 fund to
this Fund, together with interest at the actuarially assumed
rate of 11% per annum, compounded annually, to the date of the
transfer, as provided in Section 8-172.1 of this Code. These
city contributions shall be credited to the individual fireman
only if he or she pays for prior service as a paramedic in full
to this Fund.
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/6-227 new)
Sec. 6-227. Transfer of creditable service from Article 4.
Until January 1, 2010, any active member of the Firemen's
Annuity and Benefit Fund of Chicago may transfer to the Fund up
to a total of 10 years of creditable service accumulated under

SB1705 Enrolled - 9 - LRB096 09049 AMC 19189 b
Article 4 of this Code upon payment to the Fund within 5 years
after the date of application of an amount equal to the
difference between the amount of employee and employer
contributions transferred to the Fund under Section 4-108.6 and
the amounts determined by the Fund in accordance with this
Section, plus interest on that difference at the actuarially
assumed rate, compounded annually, from the date of service to
the date of payment.
The Fund must determine the fireman's payment required to
establish creditable service under this Section by taking into
account the appropriate actuarial assumptions, including
without limitation the fireman's service, age, and salary
history; the level of funding of the Fund; and any other
factors that the Fund determines to be relevant. For this
purpose, the fireman's required payment should result in no
significant increase to the Fund's unfunded actuarial accrued
liability determined as of the most recent actuarial valuation,
based on the same assumptions and methods used to develop and
report the Fund's actuarial accrued liability and actuarial
value of assets under Statement No. 25 of Governmental
Accounting Standards Board or any subsequent applicable
Statement.
(40 ILCS 5/6-228 new)
Sec. 6-228. Action by Fund against third party;
subrogation. In those cases where the injury or death for which

SB1705 Enrolled - 10 - LRB096 09049 AMC 19189 b
a disability or death benefit is payable under this Article was
caused under circumstances creating a legal liability on the
part of some person or entity (hereinafter "third party") to
pay damages to the fireman, legal proceedings may be taken
against such third party to recover damages notwithstanding the
Fund's payment of or liability to pay disability or death
benefits under this Article. In such case, however, if the
action against such third party is brought by the injured
fireman or his personal representative and judgment is obtained
and paid, or settlement is made with such third party, either
with or without suit, from the amount received by such fireman
or personal representative, then there shall be paid to the
Fund the amount of money representing the death or disability
benefits paid or to be paid to the disabled fireman pursuant to
the provisions of this Article. In all circumstances where the
action against a third party is brought by the disabled fireman
or his personal representative, the Fund shall have a claim or
lien upon any recovery, by judgment or settlement, out of which
the disabled fireman or his personal representative might be
compensated from such third party. The Fund may satisfy or
enforce any such claim or lien only from that portion of a
recovery that has been, or can be, allocated or attributed to
past and future lost salary, which recovery is by judgment or
settlement. The Fund's claim or lien shall not be satisfied or
enforced from that portion of a recovery that has been, or can
be, allocated or attributed to medical care and treatment, pain

SB1705 Enrolled - 11 - LRB096 09049 AMC 19189 b
and suffering, loss of consortium, and attorney's fees and
costs.
Where action is brought by the disabled fireman or his
personal representative they shall forthwith notify the Fund,
by personal service or registered mail, of such fact and of the
name of the court where such suit is brought, filing proof of
such notice in such action. The Fund may, at any time
thereafter, intervene in such action upon its own motion.
Therefore, no release or settlement of claim for damages by
reason of injury to the disabled fireman, and no satisfaction
of judgment in such proceedings, shall be valid without the
written consent of the Board of Trustees authorized by this
Code to administer the Fund created under this Article, except
that such consent shall be provided expeditiously following a
settlement or judgment.
In the event the disabled fireman or his personal
representative has not instituted an action against a third
party at a time when only 3 months remain before such action
would thereafter be barred by law, the Fund may, in its own
name or in the name of the personal representative, commence a
proceeding against such third party seeking the recovery of all
damages on account of injuries caused to the fireman. From any
amount so recovered, the Fund shall pay to the personal
representative of such disabled fireman all sums collected from
such third party by judgment or otherwise in excess of the
amount of disability or death benefits paid or to be paid under

SB1705 Enrolled - 12 - LRB096 09049 AMC 19189 b
this Article to the disabled fireman or his personal
representative, and such costs, attorney's fees, and
reasonable expenses as may be incurred by the Fund in making
the collection or in enforcing such liability. The Fund's
recovery, shall be satisfied only from that portion of a
recovery that has been, or can be, allocated or attributed to
past and future lost salary, which recovery is by judgment or
settlement. The Fund's recovery shall not be satisfied from
that portion of the recovery that has been or can be allocated
or attributed to medical care and treatment, pain and
suffering, loss of consortium, and attorney's fees and costs.
Additionally, with respect to any right of subrogation
asserted by the Fund under this Section, the Fund, in the
exercise of discretion, may determine what amount from past or
future salary shall be appropriate under the circumstances to
collect from the recovery obtained on behalf of the disabled
fireman.
(40 ILCS 5/8-172.1)
Sec. 8-172.1. Transfer of city contributions for
paramedics.
(a) Municipality credits computed and credited under this
Article 8 for all persons who (1) accumulated service credit in
this Article 8 fund for service as a paramedic, (2) have
terminated that Article 8 service credit and received a refund
of contributions, and (3) are participants in the Article 6

SB1705 Enrolled - 13 - LRB096 09049 AMC 19189 b
fund on the effective date of this amendatory Act of the 96th
93rd General Assembly shall be transferred by this Article 8
fund to the Article 6 fund together with interest at the
actuarially assumed rate of 11% per annum, compounded annually,
to the date of transfer. The city shall not be responsible for
making any additional employer contributions to the Fund to
replace the amounts transferred under this Section.
(b) Municipality credits computed and credited under this
Article 8 for all persons who (1) accumulated service credit in
this Article 8 fund for service as a paramedic, (2) have
terminated that Article 8 service credit and received a refund
of contributions, and (3) are not participants in the Article 6
fund on the effective date of this amendatory Act of the 93rd
General Assembly shall be used as provided in Section 8-172.
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/9-121.18 new)
Sec. 9-121.18. Transfer to Article 5.
(a) Any active member of Article 5 of this Code may apply
for transfer of some or all of his creditable service as a
correctional officer with the county department of corrections
accumulated under this Article to the Article 5 Fund in
accordance with paragraph (b) of Section 5-234. At the time of
the transfer the Fund shall pay to the Article 5 Fund an amount
equal to:
(1) the amounts accumulated to the credit of the

SB1705 Enrolled - 14 - LRB096 09049 AMC 19189 b
applicant on the books of the Fund on the date of transfer
for the service to be transferred;
(2) the corresponding employer credits, including
interest, on the books of the Fund on the date of transfer;
and
(3) any interest paid by the applicant in order to
reinstate such service.
Participation in this Fund with respect to the credits
transferred shall terminate on the date of transfer.
(b) Any person applying to transfer service under this
Section may reinstate credit for service as a member of the
county department of corrections that was terminated by receipt
of a refund, by paying to the Fund the amount of the refund
with interest thereon at the actuarially assumed rate,
compounded annually, from the date of refund to the date of
payment.
Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
(30 ILCS 805/8.33 new)
Sec. 8.33. 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 96th General Assembly.
Section 999. Effective date. This Act takes effect upon

SB1705 Enrolled - 15 - LRB096 09049 AMC 19189 b
becoming law.