100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4224

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/11-169  from Ch. 108 1/2, par. 11-169

    Amends the Chicago Laborers Article of the Illinois Pension Code. Provides that if the city fails to transmit required contributions to the pension fund, the fund may certify to the State Comptroller the amount due, and the Comptroller must deduct and remit to (instead of deposit into) the fund the certified amounts from payments of State funds (instead of grants of State funds) to the city. Specifies that the certification must be in accordance with any applicable rules of the Comptroller. Effective immediately.


LRB100 16213 RPS 31336 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4224LRB100 16213 RPS 31336 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 11-169 as follows:
 
6    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
7    Sec. 11-169. Financing; tax levy.
8    (a) Except as provided in subsection (f) of this Section,
9the city council of the city shall levy a tax annually upon all
10taxable property in the city at the rate that will produce a
11sum which, when added to the amounts deducted from the salaries
12of the employees or otherwise contributed by them and the
13amounts deposited under subsection (f), will be sufficient for
14the requirements of this Article. For the years prior to the
15year 1950 the tax rate shall be as provided for under "The 1935
16Act". Beginning with the year 1950 to and including the year
171969 such tax shall be not more than .036% annually of the
18value, as equalized or assessed by the Department of Revenue,
19of all taxable property within such city. Beginning with the
20year 1970 and each year thereafter through levy year 2016, the
21city shall levy a tax annually at a rate on the dollar of the
22value, as equalized or assessed by the Department of Revenue of
23all taxable property within such city that will produce, when

 

 

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1extended, not to exceed an amount equal to the total amount of
2contributions by the employees to the fund made in the calendar
3year 2 years prior to the year for which the annual applicable
4tax is levied, multiplied by 1.1 for the years 1970, 1971 and
51972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235
6for the year 1975; 1.280 for the year 1976; 1.325 for the year
71977; 1.370 for the years 1978 through 1998; and 1.000 for the
8year 1999 and for each year thereafter through levy year 2016.
9Beginning in levy year 2017, and in each year thereafter, the
10levy shall not exceed the amount of the city's total required
11contribution to the Fund for the next payment year, as
12determined under subsection (a-5). For the purposes of this
13Section, the payment year is the year immediately following the
14levy year.
15    The tax shall be levied and collected in like manner with
16the general taxes of the city, and shall be exclusive of and in
17addition to the amount of tax the city is now or may hereafter
18be authorized to levy for general purposes under any laws which
19may limit the amount of tax which the city may levy for general
20purposes. The county clerk of the county in which the city is
21located, in reducing tax levies under the provisions of any Act
22concerning the levy and extension of taxes, shall not consider
23the tax herein provided for as a part of the general tax levy
24for city purposes, and shall not include the same within any
25limitation of the per cent of the assessed valuation upon which
26taxes are required to be extended for such city.

 

 

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1    Revenues derived from such tax shall be paid to the city
2treasurer of the city as collected and held by the city
3treasurer for the benefit of the fund.
4    If the payments on account of taxes are insufficient during
5any year to meet the requirements of this Article, the city may
6issue tax anticipation warrants against the current tax levy.
7    The city may continue to use other lawfully available funds
8in lieu of all or part of the levy, as provided under
9subsection (f) of this Section.
10    (a-5)(1) Beginning in payment year 2018, the city's
11required annual contribution to the Fund for payment years 2018
12through 2022 shall be: for 2018, $36,000,000; for 2019,
13$48,000,000; for 2020, $60,000,000; for 2021, $72,000,000; and
14for 2022, $84,000,000.
15    (2) For payment years 2023 through 2058, the city's
16required annual contribution to the Fund shall be the amount
17determined by the Fund to be equal to the sum of (i) the city's
18portion of projected normal cost for that fiscal year, plus
19(ii) an amount determined on a level percentage of applicable
20employee payroll basis that is sufficient to bring the total
21actuarial assets of the Fund up to 90% of the total actuarial
22liabilities of the Fund by the end of 2058.
23    (3) For payment years after 2058, the city's required
24annual contribution to the Fund shall be equal to the amount,
25if any, needed to bring the total actuarial assets of the Fund
26up to 90% of the total actuarial liabilities of the Fund as of

 

 

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1the end of the year. In making the determinations under
2paragraphs (2) and (3) of this subsection, the actuarial
3calculations shall be determined under the entry age normal
4actuarial cost method, and any actuarial gains or losses from
5investment return incurred in a fiscal year shall be recognized
6in equal annual amounts over the 5-year period following the
7fiscal year.
8    To the extent that the city's contribution for any of the
9payment years referenced in this subsection is made with
10property taxes, those property taxes shall be levied,
11collected, and paid to the Fund in a like manner with the
12general taxes of the city.
13    (a-10) If the city fails to transmit to the Fund
14contributions required of it under this Article by December 31
15of the year in which such contributions are due, the Fund may,
16after giving notice to the city, certify to the State
17Comptroller the amounts of the delinquent payments in
18accordance with any applicable rules of the Comptroller, and
19the Comptroller must, beginning in payment year 2018, deduct
20and remit to deposit into the Fund the certified amounts or a
21portion of those amounts from the following proportions of
22payments grants of State funds to the city:
23        (1) in payment year 2018, one-third of the total amount
24    of any payments grants of State funds to the city;
25        (2) in payment year 2019, two-thirds of the total
26    amount of any payments grants of State funds to the city;

 

 

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1    and
2        (3) in payment year 2020 and each payment year
3    thereafter, the total amount of any payments grants of
4    State funds to the city.
5    The State Comptroller may not deduct from any payments
6grants of State funds to the city more than the amount of
7delinquent payments certified to the State Comptroller by the
8Fund.
9    (b) On or before July 1, 2017, and each July 1 thereafter,
10the board shall certify to the city council the annual amounts
11required under this Article, for which the tax herein provided
12shall be levied for the following year. The board shall compute
13the amounts necessary for the purposes of this fund to be
14credited to the reserves established and maintained as herein
15provided, and shall make an annual determination of the amount
16of the required city contributions; and certify the results
17thereof to the city council.
18    (c) In respect to employees of the city who are transferred
19to the employment of a park district by virtue of "Exchange of
20Functions Act of 1957" the corporate authorities of the park
21district shall annually levy a tax upon all the taxable
22property in the park district at such rate per cent of the
23value of such property, as equalized or assessed by the
24Department of Revenue, as shall be sufficient, when added to
25the amounts deducted from their salaries and otherwise
26contributed by them, to provide the benefits to which they and

 

 

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1their dependents and beneficiaries are entitled under this
2Article. The city shall not levy a tax hereunder in respect to
3such employees.
4    The tax so levied by the park district shall be in addition
5to and exclusive of all other taxes authorized to be levied by
6the park district for corporate, annuity fund, or other
7purposes. The county clerk of the county in which the park
8district is located, in reducing any tax levied under the
9provisions of any Act concerning the levy and extension of
10taxes shall not consider such tax as part of the general tax
11levy for park purposes, and shall not include the same in any
12limitation of the per cent of the assessed valuation upon which
13taxes are required to be extended for the park district. The
14proceeds of the tax levied by the park district, upon receipt
15by the district, shall be immediately paid over to the city
16treasurer of the city for the uses and purposes of the fund.
17    The various sums to be contributed by the city and
18allocated for the purposes of this Article, and any interest to
19be contributed by the city, shall be taken from the revenue
20derived from the taxes authorized in this Section, and no money
21of such city derived from any source other than the levy and
22collection of those taxes or the sale of tax anticipation
23warrants in accordance with the provisions of this Article
24shall be used to provide revenue for this Article, except as
25expressly provided in this Section.
26    If it is not possible for the city to make contributions

 

 

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1for age and service annuity and widow's annuity concurrently
2with the employee's contributions made for such purposes, such
3city shall make such contributions as soon as possible and
4practicable thereafter with interest thereon at the effective
5rate to the time they shall be made.
6    (d) With respect to employees whose wages are funded as
7participants under the Comprehensive Employment and Training
8Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
993-567, 88 Stat. 1845), hereinafter referred to as CETA,
10subsequent to October 1, 1978, and in instances where the board
11has elected to establish a manpower program reserve, the board
12shall compute the amounts necessary to be credited to the
13manpower program reserves established and maintained as herein
14provided, and shall make a periodic determination of the amount
15of required contributions from the City to the reserve to be
16reimbursed by the federal government in accordance with rules
17and regulations established by the Secretary of the United
18States Department of Labor or his designee, and certify the
19results thereof to the City Council. Any such amounts shall
20become a credit to the City and will be used to reduce the
21amount which the City would otherwise contribute during
22succeeding years for all employees.
23    (e) In lieu of establishing a manpower program reserve with
24respect to employees whose wages are funded as participants
25under the Comprehensive Employment and Training Act of 1973, as
26authorized by subsection (d), the board may elect to establish

 

 

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1a special municipality contribution rate for all such
2employees. If this option is elected, the City shall contribute
3to the Fund from federal funds provided under the Comprehensive
4Employment and Training Act program at the special rate so
5established and such contributions shall become a credit to the
6City and be used to reduce the amount which the City would
7otherwise contribute during succeeding years for all
8employees.
9    (f) In lieu of levying all or a portion of the tax required
10under this Section in any year, the city may deposit of that
11year for the benefit of the fund, to be held in accordance with
12this Article, an amount that, together with the taxes levied
13under this Section for that year, is not less than the amount
14of the city contributions for that year as certified by the
15board to the city council. The deposit may be derived from any
16source legally available for that purpose, including, but not
17limited to, the proceeds of city borrowings. The making of a
18deposit shall satisfy fully the requirements of this Section
19for that year to the extent of the amounts so deposited.
20Amounts deposited under this subsection may be used by the fund
21for any of the purposes for which the proceeds of the tax
22levied by the city under this Section may be used, including
23the payment of any amount that is otherwise required by this
24Article to be paid from the proceeds of that tax.
25(Source: P.A. 100-23, eff. 7-6-17.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.