Public Act 097-0099
 
HB0144 EnrolledLRB097 05348 JDS 45403 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 3-101, 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 
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.

(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 
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 
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.
  


Effective Date:  1/1/2012