Public Act 101-0610 Short Summary

SUMMARY - P.A. 101-0610 :

  1. Consolidates all Article 3 and 4 Pension Fund’s INVESTMENT ASSETS ONLY. Amends Illinois Pension Code by creating “Firefighters Pension Investment Fund” (Consolidated Funds )

    • Accounting of Funds

      • Consolidated Fund must be held in account outside of the State Treasury.

      • Board must separately calculate account balances for each participating fund. ( Separate account for CCFD )

      • Operations and financial conditions of each fund must not affect the account balance of any other participating fund.

      • Investment returns earned by the Consolidated Fund must be allocated and distributed pro rata among each participating fund in accordance with the value of the pension fund assets attributable to each fund.

      • * ACT IS SILENT ON HOW COSTS AND LOSSES ARE ALLOCATED *

  2. Requires the transfer of assets and investment authority to the Consolidated Fund no later than 30 months after the effective date of law. ( Deadline of June 30, 2022 )

  3. Creates new consolidated “investment” board for Fire. Creation of new board of trustees and delineates powers and duties; Reporting and record-keeping: auditing of all downstate funds: Management of investments: and rule-making. There will be a “transition board” created by Feb. 2, 2020 with the permanent board in place no later than Jan. 1, 2021.

    • Permanent Board will consist of 9 members - 3 municipal members (mayors, presidents, dept. heads, etc.) - 3 members representing participants , recommended by the AFFI - 1 beneficiary (retiree) elected by retirees. - 1 member elected by the Illinois Municipal League. - 1 active member who is a participant recommended by the AFFI

    • Will supply an annual audit to the local board.

  4. Reduces Training requirements

    • 16 Hours for new board members

    • 8 hours for annual renewal.

    • 4 hours of special training for all trustees regarding this new law.

  5. Tier 2 pension corrections. Corrections include the calculation of “final average salary” ; the limitation on salary applicable to Tier 2 firefighters and survivor benefits.

    • Final Average Salary is the greater of either the best 4 of 5 years: or the best 8 of 10 years salary

    • Improved COLA changes

    • Improved Pension to Survivor Benefits

  6. Local Boards to keep authority for disability, retirement and survivors benefits.

    • Does not take away local funds authority to award benefits.

    • Consolidated Fund have no authority to control, alter, modify, review or intervene in the proceedings or decisions of the local board.

    • The exclusive method of review remains in accordance with the Administrative Review Act.