Illinois Compiled Statutes
Pensions
Illinois Pension Code
40 ILCS 5/
ARTICLE 3. POLICE PENSION FUND - MUNICIPALITIES
500,000 and UNDER
(40 ILCS 5/3-128)
Sec. 3-128. Board created.
A board of 5 members shall constitute a board of trustees to administer the pension fund and to designate the beneficiaries thereof. The board shall be known as the "Board of
Trustees of the Police Pension Fund" of the municipality.
Two members of the board shall be appointed by the mayor or president of the board of trustees of the municipality involved. The 3rd and 4th members of the board shall be elected from the active participants of the pension fund by such active participants. The 5th member shall be elected by and from the beneficiaries.
One of the members appointed by the mayor or president of the board of trustees shall serve for one year beginning on the 2nd Tuesday in May after the municipality comes under this Article. The other appointed member shall serve for 2 years beginning on the same date. Their
successors shall serve for 2 years each or until their successors are appointed and qualified.
The election for board members shall be held biennially on the 3rd Monday in April, at such place or places in the municipality and under the Australian ballot system and such other regulations as shall be prescribed by the appointed members of the board.
The active pension fund participants shall be entitled to vote only for the active participant members of the board. All beneficiaries of legal age may vote only for the member chosen from among the beneficiaries. No person shall be entitled to cast more than one ballot at such election. The term of elected members shall be 2 years, beginning on the 2nd Tuesday of the first May after the election.
Upon the death, resignation or inability to act of any elected board member, his or her successor shall be elected for the unexpired term at a special election, to be called by the board and conducted in the same manner as the regular biennial election.
Members of the board shall neither receive nor have any right to receive any salary from the pension fund for services performed as trustees in that office.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-129)
Sec. 3-129. Rooms.
Suitable rooms for board offices and meetings shall be assigned by the mayor or city council or board of trustees of the municipality.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-130)
Sec. 3-130. Board meetings.
The board shall hold annually regular quarterly meetings in July, October, January and April, and special meetings as called by the president.
At the regular July meeting, the board shall select from its members a president, vice-president, secretary, and assistant secretary to serve for one year and until their respective successors are elected and qualified.
The vice-president shall perform the duties of president during any vacancy in that office, or during the president's absence from the municipality, or if he or she is by reason of illness or other causes unable to perform the duties of the office.
The assistant secretary shall act for the secretary whenever necessary to discharge the functions of such office.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-131)
Sec. 3-131. Powers and duties of board.
The board shall have the powers and duties stated in Sections 3-132 through 3-140.1 in addition
to the other powers and duties provided under this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-132)
Sec. 3-132. To control and manage the Pension Fund.
In accordance with the applicable provisions of Articles 1 and 1A and this Article, to
control and manage, exclusively, the following:
- the pension fund,
- investment expenditures and income, including interest dividends, capital gains and other distributions on the investments, and
- all money donated, paid, assessed, or provided by law for the pensioning of disabled and retired police officers, their surviving spouses, minor children, and dependent parents.
All money received or collected shall be credited by the treasurer of the municipality to the account of the pension fund and held by the treasurer of the municipality subject to the order and control of the board. The treasurer of the municipality shall maintain a record of all
money received, transferred, and held for the account of the board.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/3-133)
Sec. 3-133. To order payments and issue certificates.
To order the payment of pensions and other benefits and to issue certificates signed
by its president and secretary to the beneficiaries stating the amount and purpose of the payment.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-134)
Sec. 3-134. To submit annual list of fund payments.
To submit annually to the city council or board of trustees at the close of the municipality's fiscal year, a list of persons entitled to payments from the fund, stating the amount of payments, and their purpose, as ordered by the board. It shall also include items of income accrued to the fund during the fiscal year. The list shall be signed by the secretary and
president of the board, and attested under oath. A resolution or order for the payment of money shall not be valid unless approved by a majority of the board members, and signed by the president and secretary
of the board.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-135)
Sec. 3-135. To invest funds.
Beginning January 1, 1998, the board shall invest funds in accordance with Sections 1-113.1 through 1-113.10 of this Code.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/3-136)
Sec. 3-136. To subpoena witnesses.
To compel witnesses to attend and testify before it upon all matters connected with the administration of this Article, in the manner provided by law for the taking of testimony in the circuit courts of this State. The president, or any board member, may administer oaths to witnesses.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-137)
Sec. 3-137. To appoint clerk.
To appoint a clerk and define his duties. No person drawing a pension under this Article shall be employed by the Board.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/3-138)
Sec. 3-138. To pay expenses.
To provide for the payment from the fund of all necessary expenses, including clerk hire, printing and witness fees.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/3-139)
Sec. 3-139. To keep records.
To keep a public record of all its proceedings.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/3-140)
Sec. 3-140. To make rules.
To make necessary rules and regulations in conformity with the provisions of this Article, and to publish and transmit copies from time to time to all pensioners and contributors.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-140.1)
Sec. 3-140.1. To accept donations.
To accept by gift, grant, transfer, or bequest, any money, real estate, or personal property.
Such money and the proceeds from the sale of or the income from such real estate or personal property shall be paid into the pension fund.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-141)
Sec. 3-141. Annual report by treasurer.
On the 2nd Tuesday in May annually, the treasurer and all other officials of the municipality who had the custody of any pension funds herein provided, shall make a sworn statement to the pension board, and to the mayor and council or president and board of trustees of the municipality, of all moneys received and paid out by them on account of the pension fund during the year, and of the amount of funds then on hand and owing to the pension fund. All surplus then remaining with any official other than the treasurer shall be paid to the treasurer of the municipality. Upon demand of the pension board, any official shall furnish a statement relative to the official method of collection or handling of the pension funds. All books and records of that official shall be produced at any time by him for examination and inspection by the board.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-142)
Sec. 3-142. Payment of benefits - funds insufficient.
Any police officer and any eligible surviving spouse, child or children, or dependent parent of the officer to whom the board has ordered benefits to be paid, shall receive a yearly benefit payable in 12 equal monthly installments, which shall be the aggregate amount to which they are
entitled.
If at any time there is not sufficient money in the fund to pay the benefits under this Article the city council or board of trustees of the municipality shall make every legal effort to replenish the fund so that all beneficiaries may receive the amounts to which they are entitled. If, thereafter, there still remain insufficient funds, the beneficiaries shall be paid pro rata from the available funds, but no allowance or order of the board shall be held to create any liability against the municipality, but only against the pension fund.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-143)
Sec. 3-143. Report by board.
The board shall report annually to the city council or board of trustees of the municipality on the condition of the pension fund at the end of its most recently completed fiscal year. The report shall be made prior to the council or board meeting held for the levying of taxes for the year for which the report is made.
The board shall certify:
- the assets of the fund in its custody at the end of the fiscal year;
- the estimated receipts during the next succeeding fiscal year from deductions from the salaries of police officers, and from all other sources;
- the estimated amount required during the next succeeding fiscal year to (a) pay all pensions and other obligations provided in this Article, and (b) to meet the annual requirements of the fund as provided in Sections 3-125 and 3-127; and
- the total net income received from investment of assets, compared to such income received during the preceding fiscal year.
Before the board makes its report, the municipality shall have the assets of the fund and their current market value verified by an independent certified public accountant of its choice.
(Source: P.A. 90-507, eff. 8-22-97.)