Bill Text: IL SB2574 | 2009-2010 | 96th General Assembly | Introduced

---

Bill Title: Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that, for the 2-year period consisting of taxable years 2010 and 2011, the city council or the board of trustees of the municipality shall annually levy a tax upon all the taxable property of the municipality at the rate on the dollar that will produce an amount for that 2-year period that is the lesser of: (i) the amount levied for taxable year 2009 multiplied by 1.1 or (ii) an amount that, when added to the deductions from the salaries or wages of police officers and firefighters and revenues available from other sources, will equal a sum sufficient to meet the annual actuarial requirements of the pension funds. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2010-06-27 - Senate Floor Amendment No. 1 Re-referred to Assignments; Pursuant to Senate Rule 3-9(b). [SB2574 Detail]

Download: Illinois-2009-SB2574-Introduced.html

---

96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB2574 Introduced 1/13/2010, by Sen. Pamela J. Althoff SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that, for the 2-year period consisting of taxable years 2010 and 2011, the city council or the board of trustees of the municipality shall annually levy a tax upon all the taxable property of the municipality at the rate on the dollar that will produce an amount for that 2-year period that is the lesser of: (i) the amount levied for taxable year 2009 multiplied by 1.1 or (ii) an amount that, when added to the deductions from the salaries or wages of police officers and firefighters and revenues available from other sources, will equal a sum sufficient to meet the annual actuarial requirements of the pension funds. Effective immediately.
LRB096 16342 AMC 31606 b
PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB2574 LRB096 16342 AMC 31606 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 3-125 and 4-118 as follows:
(40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
Sec. 3-125. Financing.
(a) Except as provided in subsection (b), the The city
council or the board of trustees of the municipality shall
annually levy a tax upon all the taxable property of the
municipality at the rate on the dollar which will produce an
amount which, when added to the deductions from the salaries or
wages of police officers, and revenues available from other
sources, will equal a sum sufficient to meet the annual
requirements of the police pension fund.
(b) For the 2-year period consisting of taxable years 2010
and 2011, the city council or board of trustees of the
municipality shall annually levy a tax upon all the taxable
property of the municipality at the rate on the dollar that
will produce an amount for that 2-year period that is the
lesser of: (i) the amount levied for taxable year 2009
multiplied by 1.1 or (ii) an amount that, when added to the
deductions from the salaries or wages of police officers and

SB2574 - 2 - LRB096 16342 AMC 31606 b
revenues available from other sources, will equal a sum
sufficient to meet the annual requirements of the police
pension fund. The intent of this subsection (b) is to provide
taxpayer relief and preserve municipal employment.
(c) The annual requirements to be provided by such tax levy
are equal to (1) the normal cost of the pension fund for the
year involved, plus (2) the amount necessary to amortize the
fund's unfunded accrued liabilities as provided in Section
3-127.
(d) The tax shall be levied and collected in the same
manner as the general taxes of the municipality, and in
addition to all other taxes now or hereafter authorized to be
levied upon all property within the municipality, and shall be
in addition to the amount authorized to be levied for general
purposes as provided by Section 8-3-1 of the Illinois Municipal
Code, approved May 29, 1961, as amended. The tax shall be
forwarded directly to the treasurer of the board within 30
business days after receipt by the county.
(e) The police pension fund shall consist of the following
moneys which shall be set apart by the treasurer of the
municipality:
(1) All moneys derived from the taxes levied hereunder;
(2) Contributions by police officers under Section
3-125.1;
(3) All moneys accumulated by the municipality under
any previous legislation establishing a fund for the

SB2574 - 3 - LRB096 16342 AMC 31606 b
benefit of disabled or retired police officers;
(4) Donations, gifts or other transfers authorized by
this Article.
(Source: P.A. 95-530, eff. 8-28-07.)
(40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
Sec. 4-118. Financing.
(a) Except as provided in subsection (a-5), the The city
council or the board of trustees of the municipality shall
annually levy a tax upon all the taxable property of the
municipality at the rate on the dollar which will produce an
amount which, when added to the deductions from the salaries or
wages of firefighters and revenues available from other
sources, will equal a sum sufficient to meet the annual
actuarial requirements of the pension fund, as determined by an
enrolled actuary employed by the Illinois Department of
Insurance or by an enrolled actuary retained by the pension
fund or municipality.
(a-5) For the 2-year period consisting of taxable years
2010 and 2011, the city council or the board of trustees of the
municipality shall annually levy a tax upon all the taxable
property of the municipality at the rate on the dollar that
will produce an amount for that 2-year period that is the
lesser of: (i) the amount levied for taxable year 2009
multiplied by 1.1 or (ii) an amount that, when added to the
deductions from the salaries or wages of firefighters and

SB2574 - 4 - LRB096 16342 AMC 31606 b
revenues available from other sources, will equal a sum
sufficient to meet the annual actuarial requirements of the
pension fund, as determined by an enrolled actuary employed by
the Illinois Department of Insurance or by an enrolled actuary
retained by the pension fund or municipality. The intent of
this subsection (a-5) is to provide taxpayer relief and
preserve municipal employment.
(a-10) For the purposes of this Section, the annual
actuarial requirements of the pension fund are equal to (1) the
normal cost of the pension fund, or 17.5% of the salaries and
wages to be paid to firefighters for the year involved,
whichever is greater, plus (2) the annual amount necessary to
amortize the fund's unfunded accrued liabilities over a period
of 40 years from July 1, 1993, as annually updated and
determined by an enrolled actuary employed by the Illinois
Department of Insurance or by an enrolled actuary retained by
the pension fund or the municipality. The amount to be applied
towards the amortization of the unfunded accrued liability in
any year shall not be less than the annual amount required to
amortize the unfunded accrued liability, including interest,
as a level percentage of payroll over the number of years
remaining in the 40 year amortization period.
(b) The tax shall be levied and collected in the same
manner as the general taxes of the municipality, and shall be
in addition to all other taxes now or hereafter authorized to
be levied upon all property within the municipality, and in

SB2574 - 5 - LRB096 16342 AMC 31606 b
addition to the amount authorized to be levied for general
purposes, under Section 8-3-1 of the Illinois Municipal Code or
under Section 14 of the Fire Protection District Act. The tax
shall be forwarded directly to the treasurer of the board
within 30 business days of receipt by the county (or, in the
case of amounts added to the tax levy under subsection (f),
used by the municipality to pay the employer contributions
required under subsection (b-1) of Section 15-155 of this
Code).
(c) The board shall make available to the membership and
the general public for inspection and copying at reasonable
times the most recent Actuarial Valuation Balance Sheet and Tax
Levy Requirement issued to the fund by the Department of
Insurance.
(d) The firefighters' pension fund shall consist of the
following moneys which shall be set apart by the treasurer of
the municipality: (1) all moneys derived from the taxes levied
hereunder; (2) contributions by firefighters as provided under
Section 4-118.1; (3) all rewards in money, fees, gifts, and
emoluments that may be paid or given for or on account of
extraordinary service by the fire department or any member
thereof, except when allowed to be retained by competitive
awards; and (4) any money, real estate or personal property
received by the board.
(e) For the purposes of this Section, "enrolled actuary"
means an actuary: (1) who is a member of the Society of

SB2574 - 6 - LRB096 16342 AMC 31606 b
Actuaries or the American Academy of Actuaries; and (2) who is
enrolled under Subtitle C of Title III of the Employee
Retirement Income Security Act of 1974, or who has been engaged
in providing actuarial services to one or more public
retirement systems for a period of at least 3 years as of July
1, 1983.
(f) The corporate authorities of a municipality that
employs a person who is described in subdivision (d) of Section
4-106 may add to the tax levy otherwise provided for in this
Section an amount equal to the projected cost of the employer
contributions required to be paid by the municipality to the
State Universities Retirement System under subsection (b-1) of
Section 15-155 of this Code.
(Source: P.A. 94-859, eff. 6-15-06.)
Section 99. Effective date. This Act takes effect upon
becoming law.