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Illinois House Bill HB1357

Illinois 2025-2026 Regular Session

Illinois House Bill HB1357 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1357 Introduced , by Rep. Laura Faver Dias SYNOPSIS AS INTRODUCED: 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-12540 ILCS 5/4-118 from Ch. 108 1/2, par. 4-11830 ILCS 805/8.49 new Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that the annual employer contribution shall include an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2050 (instead of 2040). Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 06931 RPS 16968 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1357 Introduced , by Rep. Laura Faver Dias SYNOPSIS AS INTRODUCED: 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-12540 ILCS 5/4-118 from Ch. 108 1/2, par. 4-11830 ILCS 805/8.49 new 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 30 ILCS 805/8.49 new Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that the annual employer contribution shall include an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2050 (instead of 2040). Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB104 06931 RPS 16968 b LRB104 06931 RPS 16968 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1357 Introduced , by Rep. Laura Faver Dias SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-12540 ILCS 5/4-118 from Ch. 108 1/2, par. 4-11830 ILCS 805/8.49 new 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 30 ILCS 805/8.49 new
44 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
55 40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
66 30 ILCS 805/8.49 new
77 Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that the annual employer contribution shall include an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2050 (instead of 2040). Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
88 LRB104 06931 RPS 16968 b LRB104 06931 RPS 16968 b
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1010 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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1212 A BILL FOR
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1515 1 AN ACT concerning public employee benefits.
1616 2 Be it enacted by the People of the State of Illinois,
1717 3 represented in the General Assembly:
1818 4 Section 5. The Illinois Pension Code is amended by
1919 5 changing Sections 3-125 and 4-118 as follows:
2020 6 (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
2121 7 Sec. 3-125. Financing.
2222 8 (a) The city council or the board of trustees of the
2323 9 municipality shall annually levy a tax upon all the taxable
2424 10 property of the municipality at the rate on the dollar which
2525 11 will produce an amount which, when added to the deductions
2626 12 from the salaries or wages of police officers, and revenues
2727 13 available from other sources, will equal a sum sufficient to
2828 14 meet the annual requirements of the police pension fund. The
2929 15 annual requirements to be provided by such tax levy are equal
3030 16 to (1) the normal cost of the pension fund for the year
3131 17 involved, plus (2) an amount sufficient to bring the total
3232 18 assets of the pension fund up to 90% of the total actuarial
3333 19 liabilities of the pension fund by the end of municipal fiscal
3434 20 year 2050 2040, as annually updated and determined by an
3535 21 enrolled actuary employed by the Illinois Department of
3636 22 Insurance or by an enrolled actuary retained by the pension
3737 23 fund or the municipality. In making these determinations, the
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4141 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1357 Introduced , by Rep. Laura Faver Dias SYNOPSIS AS INTRODUCED:
4242 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-12540 ILCS 5/4-118 from Ch. 108 1/2, par. 4-11830 ILCS 805/8.49 new 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 30 ILCS 805/8.49 new
4343 40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
4444 40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
4545 30 ILCS 805/8.49 new
4646 Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code. Provides that the annual employer contribution shall include an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2050 (instead of 2040). Makes a conforming change. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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4949 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
5050 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
5151 A BILL FOR
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5959 30 ILCS 805/8.49 new
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8282 1 required minimum employer contribution shall be calculated
8383 2 each year as a level percentage of payroll over the years
8484 3 remaining up to and including fiscal year 2050 2040 and shall
8585 4 be determined under the projected unit credit actuarial cost
8686 5 method. The tax shall be levied and collected in the same
8787 6 manner as the general taxes of the municipality, and in
8888 7 addition to all other taxes now or hereafter authorized to be
8989 8 levied upon all property within the municipality, and shall be
9090 9 in addition to the amount authorized to be levied for general
9191 10 purposes as provided by Section 8-3-1 of the Illinois
9292 11 Municipal Code, approved May 29, 1961, as amended. The tax
9393 12 shall be forwarded directly to the treasurer of the board
9494 13 within 30 business days after receipt by the county.
9595 14 (b) For purposes of determining the required employer
9696 15 contribution to a pension fund, the value of the pension
9797 16 fund's assets shall be equal to the actuarial value of the
9898 17 pension fund's assets, which shall be calculated as follows:
9999 18 (1) On March 30, 2011, the actuarial value of a
100100 19 pension fund's assets shall be equal to the market value
101101 20 of the assets as of that date.
102102 21 (2) In determining the actuarial value of the System's
103103 22 assets for fiscal years after March 30, 2011, any
104104 23 actuarial gains or losses from investment return incurred
105105 24 in a fiscal year shall be recognized in equal annual
106106 25 amounts over the 5-year period following that fiscal year.
107107 26 (c) If a participating municipality fails to transmit to
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118118 1 the fund contributions required of it under this Article for
119119 2 more than 90 days after the payment of those contributions is
120120 3 due, the fund may, after giving notice to the municipality,
121121 4 certify to the State Comptroller the amounts of the delinquent
122122 5 payments in accordance with any applicable rules of the
123123 6 Comptroller, and the Comptroller must, beginning in fiscal
124124 7 year 2016, deduct and remit to the fund the certified amounts
125125 8 or a portion of those amounts from the following proportions
126126 9 of payments of State funds to the municipality:
127127 10 (1) in fiscal year 2016, one-third of the total amount
128128 11 of any payments of State funds to the municipality;
129129 12 (2) in fiscal year 2017, two-thirds of the total
130130 13 amount of any payments of State funds to the municipality;
131131 14 and
132132 15 (3) in fiscal year 2018 and each fiscal year
133133 16 thereafter, the total amount of any payments of State
134134 17 funds to the municipality.
135135 18 The State Comptroller may not deduct from any payments of
136136 19 State funds to the municipality more than the amount of
137137 20 delinquent payments certified to the State Comptroller by the
138138 21 fund.
139139 22 (d) The police pension fund shall consist of the following
140140 23 moneys which shall be set apart by the treasurer of the
141141 24 municipality:
142142 25 (1) All moneys derived from the taxes levied
143143 26 hereunder;
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154154 1 (2) Contributions by police officers under Section
155155 2 3-125.1;
156156 3 (2.5) All moneys received from the Police Officers'
157157 4 Pension Investment Fund as provided in Article 22B of this
158158 5 Code;
159159 6 (3) All moneys accumulated by the municipality under
160160 7 any previous legislation establishing a fund for the
161161 8 benefit of disabled or retired police officers;
162162 9 (4) Donations, gifts or other transfers authorized by
163163 10 this Article.
164164 11 (e) The Commission on Government Forecasting and
165165 12 Accountability shall conduct a study of all funds established
166166 13 under this Article and shall report its findings to the
167167 14 General Assembly on or before January 1, 2013. To the fullest
168168 15 extent possible, the study shall include, but not be limited
169169 16 to, the following:
170170 17 (1) fund balances;
171171 18 (2) historical employer contribution rates for each
172172 19 fund;
173173 20 (3) the actuarial formulas used as a basis for
174174 21 employer contributions, including the actual assumed rate
175175 22 of return for each year, for each fund;
176176 23 (4) available contribution funding sources;
177177 24 (5) the impact of any revenue limitations caused by
178178 25 PTELL and employer home rule or non-home rule status; and
179179 26 (6) existing statutory funding compliance procedures
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190190 1 and funding enforcement mechanisms for all municipal
191191 2 pension funds.
192192 3 (Source: P.A. 101-610, eff. 1-1-20.)
193193 4 (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
194194 5 Sec. 4-118. Financing.
195195 6 (a) The city council or the board of trustees of the
196196 7 municipality shall annually levy a tax upon all the taxable
197197 8 property of the municipality at the rate on the dollar which
198198 9 will produce an amount which, when added to the deductions
199199 10 from the salaries or wages of firefighters and revenues
200200 11 available from other sources, will equal a sum sufficient to
201201 12 meet the annual actuarial requirements of the pension fund, as
202202 13 determined by an enrolled actuary employed by the Illinois
203203 14 Department of Insurance or by an enrolled actuary retained by
204204 15 the pension fund or municipality. For the purposes of this
205205 16 Section, the annual actuarial requirements of the pension fund
206206 17 are equal to (1) the normal cost of the pension fund, or 17.5%
207207 18 of the salaries and wages to be paid to firefighters for the
208208 19 year involved, whichever is greater, plus (2) an annual amount
209209 20 sufficient to bring the total assets of the pension fund up to
210210 21 90% of the total actuarial liabilities of the pension fund by
211211 22 the end of municipal fiscal year 2050 2040, as annually
212212 23 updated and determined by an enrolled actuary employed by the
213213 24 Illinois Department of Insurance or by an enrolled actuary
214214 25 retained by the pension fund or the municipality. In making
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225225 1 these determinations, the required minimum employer
226226 2 contribution shall be calculated each year as a level
227227 3 percentage of payroll over the years remaining up to and
228228 4 including fiscal year 2050 2040 and shall be determined under
229229 5 the projected unit credit actuarial cost method. The amount to
230230 6 be applied towards the amortization of the unfunded accrued
231231 7 liability in any year shall not be less than the annual amount
232232 8 required to amortize the unfunded accrued liability, including
233233 9 interest, as a level percentage of payroll over the number of
234234 10 years remaining in the 40-year amortization period.
235235 11 (a-2) A municipality that has established a pension fund
236236 12 under this Article and that employs a full-time firefighter,
237237 13 as defined in Section 4-106, shall be deemed a primary
238238 14 employer with respect to that full-time firefighter. Any
239239 15 municipality of 5,000 or more inhabitants that employs or
240240 16 enrolls a firefighter while that firefighter continues to earn
241241 17 service credit as a participant in a primary employer's
242242 18 pension fund under this Article shall be deemed a secondary
243243 19 employer and such employees shall be deemed to be secondary
244244 20 employee firefighters. To ensure that the primary employer's
245245 21 pension fund under this Article is aware of additional
246246 22 liabilities and risks to which firefighters are exposed when
247247 23 performing work as firefighters for secondary employers, a
248248 24 secondary employer shall annually prepare a report accounting
249249 25 for all hours worked by and wages and salaries paid to the
250250 26 secondary employee firefighters it receives services from or
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261261 1 employs for each fiscal year in which such firefighters are
262262 2 employed and transmit a certified copy of that report to the
263263 3 primary employer's pension fund, the Department of Insurance,
264264 4 and the secondary employee firefighter no later than 30 days
265265 5 after the end of any fiscal year in which wages were paid to
266266 6 the secondary employee firefighters.
267267 7 Nothing in this Section shall be construed to allow a
268268 8 secondary employee to qualify for benefits or creditable
269269 9 service for employment as a firefighter for a secondary
270270 10 employer.
271271 11 (a-5) For purposes of determining the required employer
272272 12 contribution to a pension fund, the value of the pension
273273 13 fund's assets shall be equal to the actuarial value of the
274274 14 pension fund's assets, which shall be calculated as follows:
275275 15 (1) On March 30, 2011, the actuarial value of a
276276 16 pension fund's assets shall be equal to the market value
277277 17 of the assets as of that date.
278278 18 (2) In determining the actuarial value of the pension
279279 19 fund's assets for fiscal years after March 30, 2011, any
280280 20 actuarial gains or losses from investment return incurred
281281 21 in a fiscal year shall be recognized in equal annual
282282 22 amounts over the 5-year period following that fiscal year.
283283 23 (b) The tax shall be levied and collected in the same
284284 24 manner as the general taxes of the municipality, and shall be
285285 25 in addition to all other taxes now or hereafter authorized to
286286 26 be levied upon all property within the municipality, and in
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297297 1 addition to the amount authorized to be levied for general
298298 2 purposes, under Section 8-3-1 of the Illinois Municipal Code
299299 3 or under Section 14 of the Fire Protection District Act. The
300300 4 tax shall be forwarded directly to the treasurer of the board
301301 5 within 30 business days of receipt by the county (or, in the
302302 6 case of amounts added to the tax levy under subsection (f),
303303 7 used by the municipality to pay the employer contributions
304304 8 required under subsection (b-1) of Section 15-155 of this
305305 9 Code).
306306 10 (b-5) If a participating municipality fails to transmit to
307307 11 the fund contributions required of it under this Article for
308308 12 more than 90 days after the payment of those contributions is
309309 13 due, the fund may, after giving notice to the municipality,
310310 14 certify to the State Comptroller the amounts of the delinquent
311311 15 payments in accordance with any applicable rules of the
312312 16 Comptroller, and the Comptroller must, beginning in fiscal
313313 17 year 2016, deduct and remit to the fund the certified amounts
314314 18 or a portion of those amounts from the following proportions
315315 19 of payments of State funds to the municipality:
316316 20 (1) in fiscal year 2016, one-third of the total amount
317317 21 of any payments of State funds to the municipality;
318318 22 (2) in fiscal year 2017, two-thirds of the total
319319 23 amount of any payments of State funds to the municipality;
320320 24 and
321321 25 (3) in fiscal year 2018 and each fiscal year
322322 26 thereafter, the total amount of any payments of State
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333333 1 funds to the municipality.
334334 2 The State Comptroller may not deduct from any payments of
335335 3 State funds to the municipality more than the amount of
336336 4 delinquent payments certified to the State Comptroller by the
337337 5 fund.
338338 6 (c) The board shall make available to the membership and
339339 7 the general public for inspection and copying at reasonable
340340 8 times the most recent Actuarial Valuation Balance Sheet and
341341 9 Tax Levy Requirement issued to the fund by the Department of
342342 10 Insurance.
343343 11 (d) The firefighters' pension fund shall consist of the
344344 12 following moneys which shall be set apart by the treasurer of
345345 13 the municipality: (1) all moneys derived from the taxes levied
346346 14 hereunder; (2) contributions by firefighters as provided under
347347 15 Section 4-118.1; (2.5) all moneys received from the
348348 16 Firefighters' Pension Investment Fund as provided in Article
349349 17 22C of this Code; (3) all rewards in money, fees, gifts, and
350350 18 emoluments that may be paid or given for or on account of
351351 19 extraordinary service by the fire department or any member
352352 20 thereof, except when allowed to be retained by competitive
353353 21 awards; and (4) any money, real estate or personal property
354354 22 received by the board.
355355 23 (e) For the purposes of this Section, "enrolled actuary"
356356 24 means an actuary: (1) who is a member of the Society of
357357 25 Actuaries or the American Academy of Actuaries; and (2) who is
358358 26 enrolled under Subtitle C of Title III of the Employee
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369369 1 Retirement Income Security Act of 1974, or who has been
370370 2 engaged in providing actuarial services to one or more public
371371 3 retirement systems for a period of at least 3 years as of July
372372 4 1, 1983.
373373 5 (f) The corporate authorities of a municipality that
374374 6 employs a person who is described in subdivision (d) of
375375 7 Section 4-106 may add to the tax levy otherwise provided for in
376376 8 this Section an amount equal to the projected cost of the
377377 9 employer contributions required to be paid by the municipality
378378 10 to the State Universities Retirement System under subsection
379379 11 (b-1) of Section 15-155 of this Code.
380380 12 (g) The Commission on Government Forecasting and
381381 13 Accountability shall conduct a study of all funds established
382382 14 under this Article and shall report its findings to the
383383 15 General Assembly on or before January 1, 2013. To the fullest
384384 16 extent possible, the study shall include, but not be limited
385385 17 to, the following:
386386 18 (1) fund balances;
387387 19 (2) historical employer contribution rates for each
388388 20 fund;
389389 21 (3) the actuarial formulas used as a basis for
390390 22 employer contributions, including the actual assumed rate
391391 23 of return for each year, for each fund;
392392 24 (4) available contribution funding sources;
393393 25 (5) the impact of any revenue limitations caused by
394394 26 PTELL and employer home rule or non-home rule status; and
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405405 1 (6) existing statutory funding compliance procedures
406406 2 and funding enforcement mechanisms for all municipal
407407 3 pension funds.
408408 4 (Source: P.A. 101-522, eff. 8-23-19; 101-610, eff. 1-1-20;
409409 5 102-59, eff. 7-9-21; 102-558, eff. 8-20-21.)
410410 6 Section 90. The State Mandates Act is amended by adding
411411 7 Section 8.49 as follows:
412412 8 (30 ILCS 805/8.49 new)
413413 9 Sec. 8.49. Exempt mandate. Notwithstanding Sections 6 and
414414 10 8 of this Act, no reimbursement by the State is required for
415415 11 the implementation of any mandate created by this amendatory
416416 12 Act of the 104th General Assembly.
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