Statutes > Illinois Statutes > CHAPTER 40 PENSIONS > 40 ILCS 5/ Illinois Pension Code. > Article 4 - Firefighters' Pension Fund - Municipalities 500,000 And Under

Article 4 - Firefighters' Pension Fund - Municipalities 500,000 And Under


      (40 ILCS 5/Art. 4 heading)
ARTICLE 4. FIREFIGHTERS' PENSION FUND
MUNICIPALITIES 500,000 AND UNDER

    (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.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑102) (from Ch. 108 1/2, par. 4‑102)
    Sec. 4‑102. Terms defined. The terms used in this Article have the meanings ascribed to them in Sections 4‑103 through 4‑106, except when the context otherwise requires.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑103) (from Ch. 108 1/2, par. 4‑103)
    Sec. 4‑103. Municipality. "Municipality": (1) Any city, township, village or incorporated town of 5,000 or more but less than 500,000 inhabitants, and any fire protection district having any full‑time paid firefighters, and (2) any city, village, incorporated town or township of less than 5,000 inhabitants having a full‑time paid fire department which adopts the provisions of this article pursuant to the provisions of Section 4‑141. The term "city council" or "board of trustees" includes the board of trustees of a fire protection district and the board of town trustees or other persons empowered to draft the tentative budget and appropriation ordinance and the electors of such a township acting at the annual or special meeting of town electors.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑104) (from Ch. 108 1/2, par. 4‑104)
    Sec. 4‑104. Firemen's pension fund act of 1919. "Firemen's pension fund act of 1919": "An Act to create a firemen's pension fund in cities, incorporated towns, villages, townships and fire protection districts having a population of not less than 5,000 nor more than 200,000 inhabitants", filed July 11, 1919, as amended. That Act was repealed in 1963.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑105) (from Ch. 108 1/2, par. 4‑105)
    Sec. 4‑105. Board. "Board": The "Board of Trustees of the Firefighters' Pension Fund" of a municipality as established in Section 4‑121.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑105a) (from Ch. 108 1/2, par. 4‑105a)
    Sec. 4‑105a. Deferred Pensioner. "Deferred pensioner": a firefighter who has retired having accumulated enough creditable service to qualify for a pension under this Article but who has not attained the required age for commencement of the pension.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑105b) (from Ch. 108 1/2, par. 4‑105b)
    Sec. 4‑105b. Permanent Disability. "Permanent disability": any physical or mental disability that (1) can be expected to result in death, (2) has lasted for a continuous period of not less than 12 months, or (3) can be expected to last for a continuous period of not less than 12 months.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑105c)
    Sec. 4‑105c. Participant. "Participant": A firefighter or deferred pensioner of a pension fund, or a beneficiary of the pension fund.
(Source: P.A. 90‑507, eff. 8‑22‑97.)

    (40 ILCS 5/4‑105d)
    Sec. 4‑105d. Beneficiary. "Beneficiary": A person receiving benefits from a pension fund, including, but not limited to, retired pensioners, disabled pensioners, their surviving spouses, minor children, disabled children, and dependent parents.
(Source: P.A. 90‑507, eff. 8‑22‑97.)

    (40 ILCS 5/4‑106) (from Ch. 108 1/2, par. 4‑106)
    Sec. 4‑106. Firefighter, firefighters. "Firefighter, firefighters":
    (a) In municipalities which have adopted Division 1 of Article 10 of the Illinois Municipal Code, any person employed in the municipality's fire service as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician or scuba diver; and in any of these positions where such person's duties also include those of a firefighter as classified by the Civil Service Commission of that city, and whose duty is to participate in the work of controlling and extinguishing fires at the location of any such fires.
    (b) In municipalities which are subject to Division 2.1 of Article 10 of the Illinois Municipal Code, any person employed by a city in its fire service as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician, or scuba diver; and, in any of these positions whose duties also include those of a firefighter and are certified in the same manner as a firefighter in that city.
    (c) In municipalities which are subject to neither Division 1 nor Division 2.1 of Article 10 of the Illinois Municipal Code, any person who would have been included as a firefighter under sub‑paragraph (a) or (b) above except that he served as a de facto and not as a de jure firefighter.
    (d) Notwithstanding the other provisions of this Section, "firefighter" does not include any person who is actively participating in the State Universities Retirement System under subsection (h) of Section 15‑107 with respect to the employment for which he or she is a participating employee in that System.
    (e) This amendatory Act of 1977 does not affect persons covered by this Article prior to September 22, 1977.
(Source: P.A. 90‑576, eff. 3‑31‑98.)

    (40 ILCS 5/4‑106a) (from Ch. 108 1/2, par. 4‑106a)
    Sec. 4‑106a. Gender. The masculine gender wherever used in this Article includes the female gender unless manifestly inconsistent with the context.
(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.
    (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.
(Source: P.A. 93‑123, eff. 7‑10‑03.)

    (40 ILCS 5/4‑107) (from Ch. 108 1/2, par. 4‑107)
    Sec. 4‑107. Qualifications.
    (a) A firefighter who has not contributed to the fund during the entire period of service, to be entitled to the benefits of this Article, must contribute to the fund the amount he or she would have paid had deductions been made from his or her salary during the entire period of his or her creditable service.
    (b) Any person appointed as a firefighter in a municipality shall, within 3 months after receiving his or her first appointment and within 3 months after any reappointment make written application to the board to come under the provisions of this Article.
    (c) A person otherwise qualified to participate who was excluded from participation by reason of the age or fitness requirements removed by this amendatory Act of 1995 may elect to participate by making a written application to the Board before July 1, 1996. Persons so electing shall begin participation on the first day of the month following the month in which the application is received by the Board. These persons may also elect to establish creditable service for periods of employment as a firefighter during which they did not participate by paying into the pension fund, before January 1, 1997, the amount that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, together with interest thereon at 6% per annum, compounded annually, from the time the service was rendered until the date of payment.
    (d) A person described in subsection (h) of Section 15‑107 shall not participate in any pension fund established under this Article with respect to employment for which he or she is a participating employee in the State Universities Retirement System.
(Source: P.A. 89‑52, eff. 6‑30‑95; 90‑576, eff. 3‑31‑98.)

    (40 ILCS 5/4‑108)(from Ch. 108 1/2, par. 4‑108)
    Sec. 4‑108. Creditable service.
    (a) Creditable service is the time served as a firefighter of a municipality. In computing creditable service, furloughs and leaves of absence without pay exceeding 30 days in any one year shall not be counted, but leaves of absence for illness or accident regardless of length, and periods of disability for which a firefighter received no disability pension payments under this Article, shall be counted.
    (b) Furloughs and leaves of absence of 30 days or less in any one year may be counted as creditable service, if the firefighter makes the contribution to the fund that would have been required had he or she not been on furlough or leave of absence. To qualify for this creditable service, the firefighter must pay the required contributions to the fund not more than 90 days subsequent to the termination of the furlough or leave of absence, to the extent that the municipality has not made such contribution on his or her behalf.
    (c) Creditable service includes:
        (1) Service in the military, naval or air forces of
     the United States entered upon when the person was an active firefighter, provided that, upon applying for a permanent pension, and in accordance with the rules of the board the firefighter pays into the fund the amount that would have been contributed had he or she been a regular contributor during such period of service, if and to the extent that the municipality which the firefighter served made no such contributions in his or her behalf. The total amount of such creditable service shall not exceed 5 years, except that any firefighter who on July 1, 1973 had more than 5 years of such creditable service shall receive the total amount thereof as of that date.
        (1.5) Up to 24 months of service in the military,
     naval, or air forces of the United States that was served prior to employment by a municipality or fire protection district as a firefighter. To receive the credit for the military service prior to the employment as a firefighter, the firefighter must apply in writing to the fund and must make contributions to the fund equal to (i) the employee contributions that would have been required had the service been rendered as a member, plus (ii) an amount determined by the fund to be equal to the employer's normal cost of the benefits accrued for that military service, plus (iii) interest at the actuarially assumed rate provided by the Department of Financial and Professional Regulation, compounded annually from the first date of membership in the fund to the date of payment on items (i) and (ii). The changes to this paragraph (1.5) by this amendatory Act of the 95th General Assembly apply only to participating employees in service on or after its effective date.
        (2) Service prior to July 1, 1976 by a firefighter
     initially excluded from participation by reason of age who elected to participate and paid the required contributions for such service.
        (3) Up to 8 years of service by a firefighter as an
     officer in a statewide firefighters' association when he is on a leave of absence from a municipality's payroll, provided that (i) the firefighter has at least 10 years of creditable service as an active firefighter, (ii) the firefighter contributes to the fund the amount that he would have contributed had he remained an active member of the fund, and (iii) the employee or statewide firefighter association contributes to the fund an amount equal to the employer's required contribution as determined by the board.
        (4) Time spent as an on‑call fireman for a
     municipality, calculated at the rate of one year of creditable service for each 5 years of time spent as an on‑call fireman, provided that (i) the firefighter has at least 18 years of creditable service as an active firefighter, (ii) the firefighter spent at least 14 years as an on‑call firefighter for the municipality, (iii) the firefighter applies for such creditable service within 30 days after the effective date of this amendatory Act of 1989, (iv) the firefighter contributes to the Fund an amount representing employee contributions for the number of years of creditable service granted under this subdivision (4), based on the salary and contribution rate in effect for the firefighter at the date of entry into the Fund, to be determined by the board, and (v) not more than 3 years of creditable service may be granted under this subdivision (4).
        Except as provided in Section 4‑108.5, creditable
     service shall not include time spent as a volunteer firefighter, whether or not any compensation was received therefor. The change made in this Section by Public Act 83‑0463 is intended to be a restatement and clarification of existing law, and does not imply that creditable service was previously allowed under this Article for time spent as a volunteer firefighter.
        (5) Time served between July 1, 1976 and July 1,
     1988 in the position of protective inspection officer or administrative assistant for fire services, for a municipality with a population under 10,000 that is located in a county with a population over 3,000,000 and that maintains a firefighters' pension fund under this Article, if the position included firefighting duties, notwithstanding that the person may not have held an appointment as a firefighter, provided that application is made to the pension fund within 30 days after the effective date of this amendatory Act of 1991, and the corresponding contributions are paid for the number of years of service granted, based upon the salary and contribution rate in effect for the firefighter at the date of entry into the pension fund, as determined by the Board.
        (6) Service before becoming a participant by a
     firefighter initially excluded from participation by reason of age who becomes a participant under the amendment to Section 4‑107 made by this amendatory Act of 1993 and pays the required contributions for such service.
        (7) Up to 3 years of time during which the
     firefighter receives a disability pension under Section 4‑110, 4‑110.1, or 4‑111, provided that (i) the firefighter returns to active service after the disability for a period at least equal to the period for which credit is to be established and (ii) the firefighter makes contributions to the fund based on the rates specified in Section 4‑118.1 and the salary upon which the disability pension is based. These contributions may be paid at any time prior to the commencement of a retirement pension. The firefighter may, but need not, elect to have the contributions deducted from the disability pension or to pay them in installments on a schedule approved by the board. If not deducted from the disability pension, the contributions shall include interest at the rate of 6% per year, compounded annually, from the date for which service credit is being established to the date of payment. If contributions are paid under this subdivision (c)(7) in excess of those needed to establish the credit, the excess shall be refunded. This subdivision (c)(7) applies to persons receiving a disability pension under Section 4‑110, 4‑110.1, or 4‑111 on the effective date of this amendatory Act of the 91st General Assembly, as well as persons who begin to receive such a disability pension after that date.
(Source: P.A. 94‑856, eff. 6‑15‑06; 95‑1056, eff. 4‑10‑09.)

    (40 ILCS 5/4‑108.1) (from Ch. 108 1/2, par. 4‑108.1)
    Sec. 4‑108.1. Transfer of creditable service to General Assembly Retirement System. (a) Any active member of the General Assembly Retirement System may apply for transfer of credits and creditable service accumulated in any firefighter's pension fund under this Article to the General Assembly Retirement System. Such transfer shall be made forthwith. Payment by the firefighters' pension fund to the General Assembly Retirement System shall be made at the same time and shall consist of:
    (1) the amounts credited to the applicant through employee contributions; and
    (2) municipality contributions equal to the accumulated employee contributions as determined under (1) above. Participation in the firefighters' pension fund shall terminate on the date of transfer.
    (b) An active member of the General Assembly may reinstate service and creditable service terminated upon receipt of a refund, by payment to the firefighters' pension fund of the amount of the refund with interest thereon at the rate of 6% per year to the date of payment.
(Source: P.A. 83‑1440.)

    (40 ILCS 5/4‑108.2) (from Ch. 108 1/2, par. 4‑108.2)
    Sec. 4‑108.2. Transfer of creditable service to Article 8, 9 or 13 fund.
    (a) Any city officer as defined in Section 8‑243.2 of this Code, any county officer elected by vote of the people who is a participant in a pension fund established under Article 9 of this Code, and any elected sanitary district commissioner who is a participant in a pension fund established under Article 13 of this Code, may apply for transfer of his credits and creditable service accumulated in any firefighters' pension fund established under this Article to such Article 8, 9 or 13 fund. Such transfer shall be made forthwith. Payment by the firefighters' pension fund to the Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
        (1) the amounts credited to the applicant through
     employee contributions; and
        (2) municipality contributions equal to the
     accumulated employee contributions as determined under (1) above.
    Participation in the firefighters' pension fund shall terminate on the date of transfer.
    (b) Any such elected city officer, county officer or sanitary district commissioner may reinstate credits and creditable service terminated upon receipt of a refund, by payment to the firefighters' pension fund of the amount of the refund with interest thereon at the rate of 6% per year, compounded annually from the date of refund to the date of payment.
(Source: P.A. 85‑964; 86‑1488.)

    (40 ILCS 5/4‑108.3) (from Ch. 108 1/2, par. 4‑108.3)
    Sec. 4‑108.3. (a) Until July 1, 1989, any active member of the Illinois Municipal Retirement Fund who is a county sheriff may apply for transfer of up to 80 months of creditable service accumulated in any pension fund established under this Article to the Illinois Municipal Retirement Fund. Such creditable service shall be transferred only upon payment by such pension fund to the Illinois Municipal Retirement Fund of an amount equal to:
    (1) the amounts accumulated to the credit of the applicant on the books of the fund on the date of transfer; and
    (2) employer contributions in an amount equal to the amount determined under subparagraph (1); and
    (3) any interest paid by the applicant in order to reinstate service.
    Participation in such pension fund as to any credits transferred under this Section shall terminate on the date of transfer.
    (b) Until July 1, 1989, any such sheriff may reinstate creditable service terminated upon receipt of a refund, by payment to the firefighters' pension fund of the amount of the refund, with interest thereon at the rate of 6% per year, compounded annually from the date of refund to the date of payment.
(Source: P.A. 85‑941.)

    (40 ILCS 5/4‑108.4)
    Sec. 4‑108.4. Transfer of creditable service from Article 7 fund.
    (a) Any firefighter who was excluded from participation in an Article 4 fund because the firefighter earned credit for that service under Article 7 of this Code and who is a participant in the Illinois Municipal Retirement Fund may become an active participant in that firefighter pension fund by making a written application to the Board. Persons so applying shall begin participation on the first day of the month following the month in which the application is received by the Board. An employee who makes application for participation shall not be deemed ineligible to participate in the firefighter pension fund by reason of having failed to apply within the 3‑month period specified in subsection (b) of Section 4‑107.
    (b) A firefighter who was excluded from participation in an Article 4 fund because the firefighter earned credit for that service under Article 7 of this Code and who is a participant in the Illinois Municipal Retirement Fund may also elect to establish creditable service for those periods of employment as a firefighter during which he or she was excluded from participation in an Article 4 fund by paying into the fund the amount that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, together with interest thereon at 6% per annum, compounded annually, from the time the service was rendered until the date of payment, less any amounts transferred from the Illinois Municipal Retirement Fund under Section 7‑139.10.
    (c) In no event shall pension credit for the same service rendered by an employee be accredited in more than one pension fund or retirement system under this Code. If an employee applies for service credit under subsection (b), then any creditable service time accumulated in the Illinois Municipal Retirement Fund for the same period must be transferred to the Article 4 fund under Section 7‑139.10.
(Source: P.A. 93‑689, eff. 7‑1‑04.)

    (40 ILCS 5/4‑108.5)
    Sec. 4‑108.5. Service for providing certain fire protection services.
    (a) A firefighter for a participating municipality who was employed as an active firefighter providing fire protection for a village or incorporated town with a population of greater than 10,000 but less that 11,000 located in a county with a population of greater than 600,000 and less than 700,000, as estimated by the United States Census on July 1, 2004, may elect to establish creditable service for periods of that employment in which the firefighter provided fire protection services for the participating municipality if, by May 1, 2007, the firefighter (i) makes written application to the Board and (ii) pays into the pension fund the amount that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, plus interest thereon at 6% per annum compounded annually from the time the service was rendered until the date of payment.
    (b) Time spent providing fire protection on a part‑time basis for a village or incorporated town with a population of greater than 10,000 but less than 11,000 located in a county with a population of greater than 600,000 and less than 700,000, as estimated by the United States Census on July 1, 2004, shall be calculated at the rate of one year of creditable service for each 5 years of time spent providing such fire protection, if the firefighter (i) has at least 5 years of creditable service as an active firefighter, (ii) has at least 5 years of such service with a qualifying village or incorporated town, (iii) applies for the creditable service within 30 days after the effective date of this amendatory Act of the 94th General Assembly, and (iv) contributes to the Fund an amount representing employee contributions for the number of years of creditable service granted under this subsection (b) based on the salary and contribution rate in effect for the firefighter at the date of entry into the fund, as determined by the Board. The amount of creditable service granted under this subsection (b) may not exceed 3 years.
(Source: P.A. 94‑856, eff. 6‑15‑06.)

    (40 ILCS 5/4‑108.6)
    Sec. 4‑108.6. Transfer of creditable service to the Firemen's Annuity and Benefit Fund of Chicago.
    (a) Until January 1, 2010, any active member of the Firemen's Annuity and Benefit Fund of Chicago may apply for transfer of up to 10 years of creditable service accumulated in any pension fund established under this Article to the Firemen's Annuity and Benefit Fund of Chicago. Such creditable service shall be transferred only upon payment by such pension fund to the Firemen's Annuity and Benefit Fund of Chicago of an amount equal to:
        (1) the amounts accumulated to the credit of the
     applicant on the books of the fund on the date of transfer;
        (2) employer contributions in an amount equal to the
     amount determined under subparagraph (1); and
        (3) any interest paid by the applicant in order to
     reinstate service.
    Participation in such pension fund as to any credits
     transferred under this Section shall terminate on the date of transfer.
    (b) An active member of the Firemen's Annuity and Benefit Fund of Chicago applying for a transfer of creditable service under subsection (a) may reinstate credits and creditable service terminated upon receipt of a refund by payment to the Firemen's Annuity and Benefit Fund of Chicago of the amount of the refund with interest thereon at the actuarially assumed rate, compounded annually, from the date of the refund to the date of payment.
(Source: P.A. 96‑727, eff. 8‑25‑09.)

    (40 ILCS 5/4‑109) (from Ch. 108 1/2, par. 4‑109)
    Sec. 4‑109. Pension.
    (a) A firefighter age 50 or more with 20 or more years of creditable service, who is no longer in service as a firefighter, shall receive a monthly pension of 1/2 the monthly salary attached to the rank held by him or her in the fire service at the date of retirement.
    The monthly pension shall be increased by 1/12 of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service, to a maximum of 75% of such monthly salary.
    The changes made to this subsection (a) by this amendatory Act of the 91st General Assembly apply to all pensions that become payable under this subsection on or after January 1, 1999. All pensions payable under this subsection that began on or after January 1, 1999 and before the effective date of this amendatory Act shall be recalculated, and the amount of the increase accruing for that period shall be payable to the pensioner in a lump sum.
    (b) A firefighter who retires or is separated from service having at least 10 but less than 20 years of creditable service, who is not entitled to receive a disability pension, and who did not apply for a refund of contributions at his or her last separation from service shall receive a monthly pension upon attainment of age 60 based on the monthly salary attached to his or her rank in the fire service on the date of retirement or separation from service according to the following schedule:
    For 10 years of service, 15% of salary;
    For 11 years of service, 17.6% of salary;
    For 12 years of service, 20.4% of salary;
    For 13 years of service, 23.4% of salary;
    For 14 years of service, 26.6% of salary;
    For 15 years of service, 30% of salary;
    For 16 years of service, 33.6% of salary;
    For 17 years of service, 37.4% of salary;
    For 18 years of service, 41.4% of salary;
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