97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3437

 

Introduced 2/24/2011, by Rep. Kevin A. McCarthy

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/9-169  from Ch. 108 1/2, par. 9-169
40 ILCS 5/10-107  from Ch. 108 1/2, par. 10-107
30 ILCS 805/8.35 new

    Amends the Cook County and Cook County Forest Preserve Articles of the Illinois Pension Code. Provides that the multiplier for the years 2013 through 2015 is 2.25 and for the years 2016 through 2019 is 3.00. Provides that, beginning with the year 2020 and each year thereafter, the county and forest preserve district shall levy a tax annually upon all taxable property within the district at a rate that will produce a sum that, when added to the amounts deducted from the salaries of the employees or otherwise contributed by them and revenues from other sources, will equal a sum sufficient to meet the annual actuarial requirements of the pension fund as determined by a qualified actuary retained by the pension fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3437LRB097 05477 JDS 45537 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
5Sections 9-169 and 10-107 as follows:
 
6    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
7    Sec. 9-169. Financing - Tax levy.
8    (a) The county board shall levy a tax annually upon all
9taxable property in the county at the rate that will produce a
10sum which, when added to the amounts deducted from the salaries
11of the employees or otherwise contributed by them is sufficient
12for the requirements of this Article.
13    For the years before 1962 the tax rate shall be as provided
14in "The 1925 Act". For the years 1962 and 1963 the tax rate
15shall be not more than .0200 per cent; for the years 1964 and
161965 the tax rate shall be not more than .0202 per cent; for
17the years 1966 and 1967 the tax rate shall be not more than
18.0207 per cent; for the year 1968 the tax rate shall be not
19more than .0220 per cent; for the year 1969 the tax rate shall
20be not more than .0233 per cent; for the year 1970 the tax rate
21shall be not more than .0255 per cent; for the year 1971 the
22tax rate shall be not more than .0268 per cent of the value, as
23equalized or assessed by the Department of Revenue upon all

 

 

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1taxable property in the county. Beginning with the year 1972
2and for each year thereafter the county shall levy a tax
3annually at a rate on the dollar of the value, as equalized or
4assessed by the Department of Revenue of all taxable property
5within the county that will produce, when extended, not to
6exceed an amount equal to the total amount of contributions
7made by the employees to the fund in the calendar year 2 years
8prior to the year for which the annual applicable tax is levied
9multiplied by .8 for the years 1972 through 1976; by .8 for the
10year 1977; by .87 for the year 1978; by .94 for the year 1979;
11by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
121.18 for the year 1982 and by 1.36 for the year 1983 and by 1.54
13for the years year 1984 through 2012 and by 2.25 for the years
142013 through 2015 and by 3.00 for the years 2016 through 2019.
15Beginning in the year 2020 and for each year thereafter, the
16county shall levy a tax annually upon all taxable property
17within the county at a rate that will produce a sum that, when
18added to the amounts deducted from the salaries of the
19employees or otherwise contributed by them and revenues from
20other sources, will equal a sum sufficient to meet the annual
21actuarial requirements of the pension fund as determined by a
22qualified actuary retained by the pension fund. For the
23purposes of this subsection (a), the annual actuarial
24requirements of the pension fund are equal to (1) the
25employer's normal cost of the pension fund, plus (2) the annual
26amount necessary to amortize the fund's unfunded accrued

 

 

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1liabilities over a period of 30 years from the effective date
2of the evaluation.
3    This tax shall be levied and collected in like manner with
4the general taxes of the county, and shall be in addition to
5all other taxes which the county is authorized to levy upon the
6aggregate valuation of all taxable property within the county
7and shall be exclusive of and in addition to the amount of tax
8the county is authorized to levy for general purposes under any
9laws which may limit the amount of tax which the county may
10levy for general purposes. The county clerk, in reducing tax
11levies under any Act concerning the levy and extension of
12taxes, shall not consider this tax as a part of the general tax
13levy for county purposes, and shall not include it within any
14limitation of the per cent of the assessed valuation upon which
15taxes are required to be extended for the county. It is lawful
16to extend this tax in addition to the general county rate fixed
17by statute, without being authorized as additional by a vote of
18the people of the county.
19    Revenues derived from this tax shall be paid to the
20treasurer of the county and held by him for the benefit of the
21fund.
22    If the payments on account of taxes are insufficient during
23any year to meet the requirements of this Article, the county
24may issue tax anticipation warrants against the current tax
25levy.
26    (b) By January 10, annually, the board shall notify the

 

 

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1county board of the requirement of this Article that this tax
2shall be levied. The board shall make an annual determination
3of the required county contributions, and shall certify the
4results thereof to the county board.
5    (c) The various sums to be contributed by the county board
6and allocated for the purposes of this Article and any interest
7to be contributed by the county shall be taken from the revenue
8derived from this tax and no money of the county derived from
9any source other than the levy and collection of this tax or
10the sale of tax anticipation warrants, except state or federal
11funds contributed for annuity and benefit purposes for
12employees of a county department of public aid under "The
13Illinois Public Aid Code", approved April 11, 1967, as now or
14hereafter amended, may be used to provide revenue for the fund.
15    If it is not possible or practicable for the county to make
16contributions for age and service annuity and widow's annuity
17concurrently with the employee contributions made for such
18purposes, such county shall make such contributions as soon as
19possible and practicable thereafter with interest thereon at
20the effective rate until the time it shall be made.
21    (d) With respect to employees whose wages are funded as
22participants under the Comprehensive Employment and Training
23Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2493-567, 88 Stat. 1845), hereinafter referred to as CETA,
25subsequent to October 1, 1978, and in instances where the board
26has elected to establish a manpower program reserve, the board

 

 

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1shall compute the amounts necessary to be credited to the
2manpower program reserves established and maintained as herein
3provided, and shall make a periodic determination of the amount
4of required contributions from the County to the reserve to be
5reimbursed by the federal government in accordance with rules
6and regulations established by the Secretary of the United
7States Department of Labor or his designee, and certify the
8results thereof to the County Board. Any such amounts shall
9become a credit to the County and will be used to reduce the
10amount which the County would otherwise contribute during
11succeeding years for all employees.
12    (e) In lieu of establishing a manpower program reserve with
13respect to employees whose wages are funded as participants
14under the Comprehensive Employment and Training Act of 1973, as
15authorized by subsection (d), the board may elect to establish
16a special County contribution rate for all such employees. If
17this option is elected, the County shall contribute to the Fund
18from federal funds provided under the Comprehensive Employment
19and Training Act program at the special rate so established and
20such contributions shall become a credit to the County and be
21used to reduce the amount which the County would otherwise
22contribute during succeeding years for all employees.
23(Source: P.A. 95-369, eff. 8-23-07.)
 
24    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
25    Sec. 10-107. Financing - Tax levy. The forest preserve

 

 

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1district may levy an annual tax on the value, as equalized or
2assessed by the Department of Revenue, of all taxable property
3in the district for the purpose of providing revenue for the
4fund. The rate of such tax in any year may not exceed the rate
5herein specified for that year or the rate which will produce,
6when extended, the sum herein stated for that year, whichever
7is higher: for any year prior to 1970, .00103% or $195,000; for
8the year 1970, .00111% or $210,000; for the year 1971, .00116%
9or $220,000. For the year 1972 and each year thereafter, the
10Forest Preserve District shall levy a tax annually at a rate on
11the dollar of the value, as equalized or assessed by the
12Department of Revenue upon all taxable property in the county,
13when extended, not to exceed an amount equal to the total
14amount of contributions by the employees to the fund made in
15the calendar year 2 years prior to the year for which the
16annual applicable tax is levied, multiplied by 1.25 for the
17year 1972; and by 1.30 for the years year 1973 through 2012 and
18by 2.25 for the years 2013 through 2015 and by 3.00 for the
19years 2016 through 2019. Beginning in the year 2020 and for
20each year thereafter, the forest preserve district shall levy a
21tax annually upon all taxable property within the district at a
22rate that will produce a sum that, when added to the amounts
23deducted from the salaries of the employees or otherwise
24contributed by them, and revenues from other sources, will
25equal a sum sufficient to meet the annual actuarial
26requirements of the pension fund as determined by a qualified

 

 

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1actuary retained by the pension fund. For the purposes of this
2Section, the annual actuarial requirements of the pension fund
3are equal to (1) the employer's normal cost of the pension
4fund, plus (2) the annual amount necessary to amortize the
5fund's unfunded accrued liabilities over a period of 30 years
6from the effective date of the evaluation.
7    The tax shall be levied and collected in like manner with
8the general taxes of the district and shall be in addition to
9the maximum of all other tax rates which the district may levy
10upon the aggregate valuation of all taxable property and shall
11be exclusive of and in addition to the maximum amount and rate
12of taxes the district may levy for general purposes or under
13and by virtue of any laws which limit the amount of tax which
14the district may levy for general purposes. The county clerk of
15the county in which the forest preserve district is located in
16reducing tax levies under the provisions of "An Act concerning
17the levy and extension of taxes", approved May 9, 1901, as
18amended, shall not consider any such tax as a part of the
19general tax levy for forest preserve purposes, and shall not
20include the same in the limitation of 1% of the assessed
21valuation upon which taxes are required to be extended, and
22shall not reduce the same under the provisions of that Act. The
23proceeds of the tax herein authorized shall be kept as a
24separate fund.
25    The Board may establish a manpower program reserve, or a
26special forest preserve district contribution rate, with

 

 

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1respect to employees whose wages are funded as program
2participants under the Comprehensive Employment and Training
3Act of 1973 in the manner provided in subsection (d) or (e),
4respectively, of Section 9-169.
5(Source: P.A. 81-1509.)
 
6    Section 90. The State Mandates Act is amended by adding
7Section 8.35 as follows:
 
8    (30 ILCS 805/8.35 new)
9    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
10of this Act, no reimbursement by the State is required for the
11implementation of any mandate created by this amendatory Act of
12the 97th General Assembly.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.