97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5333

 

Introduced 2/8/2012, by Rep. Marlow H. Colvin

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-129  from Ch. 108 1/2, par. 17-129

    Amends the Chicago Teacher Article of the Illinois Pension Code. Increases the Board of Education's total required contribution to the Fund for fiscal year 2013 from $196,000,000 to $307,485,000. In a provision that reduces the required annual Board of Education contribution to the Fund by the amount of any State contribution, makes the reduction apply only if the Board has certified in the previous fiscal year that the total assets of the Fund are at least 90% of the total actuarial liabilities of the Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 17-129 as follows:
 
6    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
7    Sec. 17-129. Employer contributions; deficiency in Fund.
8    (a) If in any fiscal year of the Board of Education ending
9prior to 1997 the total amounts paid to the Fund from the Board
10of Education (other than under this subsection, and other than
11amounts used for making or "picking up" contributions on behalf
12of teachers) and from the State do not equal the total
13contributions made by or on behalf of the teachers for such
14year, or if the total income of the Fund in any such fiscal
15year of the Board of Education from all sources is less than
16the total such expenditures by the Fund for such year, the
17Board of Education shall, in the next succeeding year, in
18addition to any other payment to the Fund set apart and
19appropriate from moneys from its tax levy for educational
20purposes, a sum sufficient to remove such deficiency or
21deficiencies, and promptly pay such sum into the Fund in order
22to restore any of the reserves of the Fund that may have been
23so temporarily applied. Any amounts received by the Fund after

 

 

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1December 4, 1997 from State appropriations, including under
2Section 17-127, shall be a credit against and shall fully
3satisfy any obligation that may have arisen, or be claimed to
4have arisen, under this subsection (a) as a result of any
5deficiency or deficiencies in the fiscal year of the Board of
6Education ending in calendar year 1997.
7    (b) (i) Notwithstanding any other provision of this
8Section, and notwithstanding any prior certification by the
9Board under subsection (c) for fiscal year 2011, the Board of
10Education's total required contribution to the Fund for fiscal
11year 2011 under this Section is $187,000,000.
12    (ii) Notwithstanding any other provision of this Section,
13the Board of Education's total required contribution to the
14Fund for fiscal year 2012 under this Section is $192,000,000.
15    (iii) Notwithstanding any other provision of this Section,
16the Board of Education's total required contribution to the
17Fund for fiscal year 2013 under this Section is $307,485,000
18$196,000,000.
19    (iv) For fiscal years 2014 through 2059, the minimum
20contribution to the Fund to be made by the Board of Education
21in each fiscal year shall be an amount determined by the Fund
22to be sufficient to bring the total assets of the Fund up to
2390% of the total actuarial liabilities of the Fund by the end
24of fiscal year 2059. In making these determinations, the
25required Board of Education contribution shall be calculated
26each year as a level percentage of the applicable employee

 

 

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1payrolls over the years remaining to and including fiscal year
22059 and shall be determined under the projected unit credit
3actuarial cost method.
4    (v) Beginning in fiscal year 2060, the minimum Board of
5Education contribution for each fiscal year shall be the amount
6needed to maintain the total assets of the Fund at 90% of the
7total actuarial liabilities of the Fund.
8    (vi) Notwithstanding any other provision of this
9subsection (b), for any fiscal year, the contribution to the
10Fund from the Board of Education shall not be required to be in
11excess of the amount calculated as needed to maintain the
12assets (or cause the assets to be) at the 90% level by the end
13of the fiscal year.
14    (vii) Any contribution by the State to or for the benefit
15of the Fund, including, without limitation, as referred to
16under Section 17-127, shall be a credit against any
17contribution required to be made by the Board of Education
18under this subsection (b) if the Board has certified in the
19previous fiscal year that the total assets of the Fund are at
20least 90% of the total actuarial liabilities of the Fund.
21    (c) The Board shall determine the amount of Board of
22Education contributions required for each fiscal year on the
23basis of the actuarial tables and other assumptions adopted by
24the Board and the recommendations of the actuary, in order to
25meet the minimum contribution requirements of subsections (a)
26and (b). Annually, on or before February 28, the Board shall

 

 

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1certify to the Board of Education the amount of the required
2Board of Education contribution for the coming fiscal year. The
3certification shall include a copy of the actuarial
4recommendations upon which it is based.
5(Source: P.A. 96-889, eff. 4-14-10.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.