97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5426

 

Introduced 2/15/2012, by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/6-165  from Ch. 108 1/2, par. 6-165
30 ILCS 805/8.36 new

    Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that the city shall deposit with the city treasurer for the benefit of the fund, a minimum of 20% of all proceeds collected by the city from newly established gaming revenue sources arising out of legislation enacted in 2012 or thereafter. These deposits shall continue until the stabilization of the fund has been deemed to have occurred by an independent actuarial organization mutually agreed upon by the city, employee representatives, and the board of the 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

 

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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 6-165 as follows:
 
6    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
7    Sec. 6-165. Financing; tax.
8    (a) Except as expressly provided in this Section, each city
9shall levy a tax annually upon all taxable property therein for
10the purpose of providing revenue for the fund. For the years
11prior to the year 1960, the tax rate shall be as provided for
12in the "Firemen's Annuity and Benefit Fund of the Illinois
13Municipal Code". The tax, from and after January 1, 1968 to and
14including the year 1971, shall not exceed .0863% of the value,
15as equalized or assessed by the Department of Revenue, of all
16taxable property in the city. Beginning with the year 1972 and
17through 2014, the city shall levy a tax annually at a rate on
18the dollar of the value, as equalized or assessed by the
19Department of Revenue of all taxable property within such city
20that will produce, when extended, not to exceed an amount equal
21to the total amount of contributions by the employees to the
22fund made in the calendar year 2 years prior to the year for
23which the annual applicable tax is levied, multiplied by 2.23

 

 

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1through the calendar year 1981, and by 2.26 for the year 1982
2and for each year through 2014. Beginning in 2015, the city
3council shall levy a tax annually at a rate on the dollar of
4the assessed valuation of all taxable property that will
5produce when extended an annual amount that is equal to (1) the
6normal cost to the Fund, plus (2) an annual amount sufficient
7to bring the total assets of the Fund up to 90% of the total
8actuarial liabilities of the Fund by the end of fiscal year
92040, as annually updated and determined by an enrolled actuary
10employed by the Illinois Department of Insurance or by an
11enrolled actuary retained by the Fund or the city. In making
12these determinations, the required minimum employer
13contribution shall be calculated each year as a level
14percentage of payroll over the years remaining up to and
15including fiscal year 2040 and shall be determined under the
16projected unit credit actuarial cost method.
17    To provide revenue for the ordinary death benefit
18established by Section 6-150 of this Article, in addition to
19the contributions by the firemen for this purpose, the city
20council shall for the year 1962 and each year thereafter
21annually levy a tax, which shall be in addition to and
22exclusive of the taxes authorized to be levied under the
23foregoing provisions of this Section, upon all taxable property
24in the city, as equalized or assessed by the Department of
25Revenue, at such rate per cent of the value of such property as
26shall be sufficient to produce for each year the sum of

 

 

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1$142,000.
2    The amounts produced by the taxes levied annually, together
3with the deposit expressly authorized in this Section, shall be
4sufficient, when added to the amounts deducted from the
5salaries of firemen and applied to the fund, to provide for the
6purposes of the fund.
7    (a-5) For purposes of determining the required employer
8contribution to the Fund, the value of the Fund's assets shall
9be equal to the actuarial value of the Fund's assets, which
10shall be calculated as follows:
11        (1) On March 30, 2011, the actuarial value of the
12    Fund's assets shall be equal to the market value of the
13    assets as of that date.
14        (2) In determining the actuarial value of the Fund's
15    assets for fiscal years after March 30, 2011, any actuarial
16    gains or losses from investment return incurred in a fiscal
17    year shall be recognized in equal annual amounts over the
18    5-year period following that fiscal year.
19    (a-7) If the city fails to transmit to the Fund
20contributions required of it under this Article for more than
2190 days after the payment of those contributions is due, the
22Fund may, after giving notice to the city, certify to the State
23Comptroller the amounts of the delinquent payments, and the
24Comptroller must, beginning in fiscal year 2016, deduct and
25deposit into the Fund the certified amounts or a portion of
26those amounts from the following proportions of grants of State

 

 

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1funds to the city:
2        (1) in fiscal year 2016, one-third of the total amount
3    of any grants of State funds to the city;
4        (2) in fiscal year 2017, two-thirds of the total amount
5    of any grants of State funds to the city; and
6        (3) in fiscal year 2018 and each fiscal year
7    thereafter, the total amount of any grants of State funds
8    to the city.
9    The State Comptroller may not deduct from any grants of
10State funds to the city more than the amount of delinquent
11payments certified to the State Comptroller by the Fund.
12    (b) The taxes shall be levied and collected in like manner
13with the general taxes of the city, and shall be in addition to
14all other taxes which the city may levy upon all taxable
15property therein and shall be exclusive of and in addition to
16the amount of tax the city may levy for general purposes under
17Section 8-3-1 of the Illinois Municipal Code, approved May 29,
181961, as amended, or under any other law or laws which may
19limit the amount of tax which the city may levy for general
20purposes.
21    (c) The amounts of the taxes to be levied in each year
22shall be certified to the city council by the board.
23    (d) As soon as any revenue derived from such taxes is
24collected, it shall be paid to the city treasurer and held for
25the benefit of the fund, and all such revenue shall be paid
26into the fund in accordance with the provisions of this

 

 

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1Article.
2    (e) If the funds available are insufficient during any year
3to meet the requirements of this Article, the city may issue
4tax anticipation warrants, against the tax levies herein
5authorized for the current fiscal year.
6    (f) The various sums, hereinafter stated, including
7interest, to be contributed by the city, shall be taken from
8the revenue derived from the taxes or otherwise as expressly
9provided in this Section. Except for defraying the cost of
10administration of the fund during the calendar year in which a
11city first attains a population of 500,000 and comes under the
12provisions of this Article and the first calendar year
13thereafter, any money of the city derived from any source other
14than these taxes or the sale of tax anticipation warrants shall
15not be used to provide revenue for the fund, nor to pay any
16part of the cost of administration thereof, unless applied to
17make the deposit expressly authorized in this Section or the
18additional city contributions required under subsection (h).
19    (g) In lieu of levying all or a portion of the tax required
20under this Section in any year, the city may deposit with the
21city treasurer no later than March 1 of that year for the
22benefit of the fund, to be held in accordance with this
23Article, an amount that, together with the taxes levied under
24this Section for that year, is not less than the amount of the
25city contributions for that year as certified by the board to
26the city council. The deposit may be derived from any source

 

 

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1legally available for that purpose, including, but not limited
2to, the proceeds of city borrowings. The making of a deposit
3shall satisfy fully the requirements of this Section for that
4year to the extent of the amounts so deposited. Amounts
5deposited under this subsection may be used by the fund for any
6of the purposes for which the proceeds of the taxes levied
7under this Section may be used, including the payment of any
8amount that is otherwise required by this Article to be paid
9from the proceeds of those taxes.
10    (h) In addition to the contributions required under the
11other provisions of this Article, by November 1 of the
12following specified years, the city shall deposit with the city
13treasurer for the benefit of the fund, to be held and used in
14accordance with this Article, the following specified amounts:
15$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
16$5,040,000 in 2002; and $4,620,000 in 2003.
17    The additional city contributions required under this
18subsection are intended to decrease the unfunded liability of
19the fund and shall not decrease the amount of the city
20contributions required under the other provisions of this
21Article. The additional city contributions made under this
22subsection may be used by the fund for any of its lawful
23purposes.
24    (i) In addition to the contributions required under the
25other provisions of this Article, the city shall deposit with
26the city treasurer for the benefit of the fund, to be held and

 

 

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1used in accordance with this Article, a minimum of 20% of all
2proceeds collected by the city from newly established gaming
3revenue sources arising out of legislation enacted in 2012 or
4thereafter. These deposits shall continue until the
5stabilization of the fund has been deemed to have occurred by
6an independent actuarial organization mutually agreed upon by
7the city, employee representatives, and the board of the fund.
8    The additional city contributions required under this
9subsection are intended for the emergency stabilization of the
10fund and shall not decrease the amount of the city
11contributions required under the other provisions of this
12Article. The additional city contributions made under this
13subsection may be used by the fund for any of its lawful
14purposes.
15    
16(Source: P.A. 96-1495, eff. 1-1-11.)
 
17    Section 90. The State Mandates Act is amended by adding
18Section 8.36 as follows:
 
19    (30 ILCS 805/8.36 new)
20    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
21of this Act, no reimbursement by the State is required for the
22implementation of any mandate created by this amendatory Act of
23the 97th General Assembly.
 
24    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.