95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5876

 

Introduced , by Rep. Tom Cross

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-124   from Ch. 108 1/2, par. 2-124

    Amends the General Assembly Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.


LRB095 16132 AMC 42151 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5876 LRB095 16132 AMC 42151 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 2-124 as follows:
 
6     (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
7     Sec. 2-124. Contributions by State.
8     (a) The The State shall make contributions to the System by
9 appropriations of amounts which, together with the
10 contributions of participants, interest earned on investments,
11 and other income will meet the cost of maintaining and
12 administering the System on a 90% funded basis in accordance
13 with actuarial recommendations.
14     (b) The Board shall determine the amount of State
15 contributions required for each fiscal year on the basis of the
16 actuarial tables and other assumptions adopted by the Board and
17 the prescribed rate of interest, using the formula in
18 subsection (c).
19     (c) For State fiscal years 2011 through 2045, the minimum
20 contribution to the System to be made by the State for each
21 fiscal year shall be an amount determined by the System to be
22 sufficient to bring the total assets of the System up to 90% of
23 the total actuarial liabilities of the System by the end of

 

 

HB5876 - 2 - LRB095 16132 AMC 42151 b

1 State fiscal year 2045. In making these determinations, the
2 required State contribution shall be calculated each year as a
3 level percentage of payroll over the years remaining to and
4 including fiscal year 2045 and shall be determined under the
5 projected unit credit actuarial cost method.
6     For State fiscal years 1996 through 2005, the State
7 contribution to the System, as a percentage of the applicable
8 employee payroll, shall be increased in equal annual increments
9 so that by State fiscal year 2011, the State is contributing at
10 the rate required under this Section.
11     Notwithstanding any other provision of this Article, the
12 total required State contribution for State fiscal year 2006 is
13 $4,157,000.
14     Notwithstanding any other provision of this Article, the
15 total required State contribution for State fiscal year 2007 is
16 $5,220,300.
17     For each of State fiscal years 2008 through 2010, the State
18 contribution to the System, as a percentage of the applicable
19 employee payroll, shall be increased in equal annual increments
20 from the required State contribution for State fiscal year
21 2007, so that by State fiscal year 2011, the State is
22 contributing at the rate otherwise required under this Section.
23     Beginning in State fiscal year 2046, the minimum State
24 contribution for each fiscal year shall be the amount needed to
25 maintain the total assets of the System at 90% of the total
26 actuarial liabilities of the System.

 

 

HB5876 - 3 - LRB095 16132 AMC 42151 b

1     Amounts received by the System pursuant to Section 25 of
2 the Budget Stabilization Act in any fiscal year do not reduce
3 and do not constitute payment of any portion of the minimum
4 State contribution required under this Article in that fiscal
5 year. Such amounts shall not reduce, and shall not be included
6 in the calculation of, the required State contributions under
7 this Article in any future year until the System has reached a
8 funding ratio of at least 90%. A reference in this Article to
9 the "required State contribution" or any substantially similar
10 term does not include or apply to any amounts payable to the
11 System under Section 25 of the Budget Stabilization Act.
12     Notwithstanding any other provision of this Section, the
13 required State contribution for State fiscal year 2005 and for
14 fiscal year 2008 and each fiscal year thereafter, as calculated
15 under this Section and certified under Section 2-134, shall not
16 exceed an amount equal to (i) the amount of the required State
17 contribution that would have been calculated under this Section
18 for that fiscal year if the System had not received any
19 payments under subsection (d) of Section 7.2 of the General
20 Obligation Bond Act, minus (ii) the portion of the State's
21 total debt service payments for that fiscal year on the bonds
22 issued for the purposes of that Section 7.2, as determined and
23 certified by the Comptroller, that is the same as the System's
24 portion of the total moneys distributed under subsection (d) of
25 Section 7.2 of the General Obligation Bond Act. In determining
26 this maximum for State fiscal years 2008 through 2010, however,

 

 

HB5876 - 4 - LRB095 16132 AMC 42151 b

1 the amount referred to in item (i) shall be increased, as a
2 percentage of the applicable employee payroll, in equal
3 increments calculated from the sum of the required State
4 contribution for State fiscal year 2007 plus the applicable
5 portion of the State's total debt service payments for fiscal
6 year 2007 on the bonds issued for the purposes of Section 7.2
7 of the General Obligation Bond Act, so that, by State fiscal
8 year 2011, the State is contributing at the rate otherwise
9 required under this Section.
10 (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839,
11 eff. 6-6-06.)