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| 1 | AN ACT concerning public employee benefits.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
| 5 | Section 4-118 as follows:
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| 6 | (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
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| 7 | Sec. 4-118. Financing.
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| 8 | (a) The city council or the board of trustees
of the | ||||||
| 9 | municipality shall annually levy a tax upon all the taxable | ||||||
| 10 | property
of the municipality at the rate on the dollar which | ||||||
| 11 | will produce an amount
which, when added to the deductions from | ||||||
| 12 | the salaries or wages of
firefighters and revenues available | ||||||
| 13 | from other sources, will equal a sum
sufficient to meet the | ||||||
| 14 | annual actuarial requirements of the pension fund,
as | ||||||
| 15 | determined by an enrolled actuary employed by the Illinois | ||||||
| 16 | Department of
Insurance or by an enrolled actuary retained by | ||||||
| 17 | the pension fund or
municipality. For the purposes of this | ||||||
| 18 | Section, the annual actuarial
requirements of the pension fund | ||||||
| 19 | are equal to (1) the normal cost of the
pension fund, or 17.5% | ||||||
| 20 | of the salaries and wages to be paid to firefighters
for the | ||||||
| 21 | year involved, whichever is greater, plus (2) the annual amount
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| 22 | necessary to amortize the fund's unfunded accrued liabilities | ||||||
| 23 | over a period
of 40 years from July 1, 1993, as annually | ||||||
| 24 | updated and determined by an
enrolled actuary employed by the | ||||||
| 25 | Illinois Department of Insurance or by an
enrolled actuary | ||||||
| 26 | retained by the pension fund or the municipality. The amount
to | ||||||
| 27 | be applied towards the amortization of the unfunded accrued | ||||||
| 28 | liability in any
year shall not be less than the annual amount | ||||||
| 29 | required to amortize the unfunded
accrued liability, including | ||||||
| 30 | interest, as a level percentage of payroll over
the number of | ||||||
| 31 | years remaining in the 40 year amortization period.
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| 32 | (b) The tax shall be levied and collected in the same | ||||||
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| 1 | manner
as the general taxes of the municipality, and shall be | ||||||
| 2 | in addition
to all other taxes now or hereafter authorized to | ||||||
| 3 | be levied upon all
property within the municipality, and in | ||||||
| 4 | addition to the amount authorized
to be levied for general | ||||||
| 5 | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | ||||||
| 6 | under Section 14 of the Fire Protection District Act. The
tax | ||||||
| 7 | shall be forwarded directly to the treasurer of the board | ||||||
| 8 | within 30
business days of receipt by the county
municipality
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| 9 | (or, in the case of amounts
added to the tax levy under | ||||||
| 10 | subsection (f), used by the municipality to pay the
employer | ||||||
| 11 | contributions required under subsection (b-1) of Section | ||||||
| 12 | 15-155 of
this Code).
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| 13 | (c) The board shall make available to the membership and | ||||||
| 14 | the general public
for inspection and copying at reasonable | ||||||
| 15 | times the most recent Actuarial
Valuation Balance Sheet and Tax | ||||||
| 16 | Levy Requirement issued to the fund by the
Department of | ||||||
| 17 | Insurance.
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| 18 | (d) The firefighters' pension fund shall consist of the | ||||||
| 19 | following moneys
which shall be set apart by the treasurer of | ||||||
| 20 | the municipality: (1) all
moneys derived from the taxes levied | ||||||
| 21 | hereunder; (2) contributions
by firefighters as provided under | ||||||
| 22 | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | ||||||
| 23 | emoluments that may be paid or given
for or on account of | ||||||
| 24 | extraordinary service by the fire department or any
member | ||||||
| 25 | thereof, except when allowed to be retained by competitive | ||||||
| 26 | awards;
and (4) any money, real estate or personal property | ||||||
| 27 | received by the board.
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| 28 | (e) For the purposes of this Section, "enrolled actuary" | ||||||
| 29 | means an actuary:
(1) who is a member of the Society of | ||||||
| 30 | Actuaries or the American
Academy of Actuaries; and (2) who is | ||||||
| 31 | enrolled under Subtitle
C of Title III of the Employee | ||||||
| 32 | Retirement Income Security Act of 1974, or
who has been engaged | ||||||
| 33 | in providing actuarial services to one or more public
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| 34 | retirement systems for a period of at least 3 years as of July | ||||||
| 35 | 1, 1983.
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| 36 | (f) The corporate authorities of a municipality that | ||||||
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| 1 | employs a person
who is described in subdivision (d) of Section | ||||||
| 2 | 4-106 may add to the tax levy
otherwise provided for in this | ||||||
| 3 | Section an amount equal to the projected cost of
the employer | ||||||
| 4 | contributions required to be paid by the municipality to the | ||||||
| 5 | State
Universities Retirement System under subsection (b-1) of | ||||||
| 6 | Section 15-155 of this
Code.
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| 7 | (Source: P.A. 90-576, eff. 3-31-98.)
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| 8 | Section 99. Effective date. This Act takes effect upon | ||||||
| 9 | becoming law.
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