97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3421

 

Introduced 2/7/2012, by Sen. Mike Jacobs

 

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 805/8.36 new

    Amends the Illinois Pension Code. In the Cook County and Cook County Forest Preserve Articles, increases the multiplier used to calculate the maximum tax levy for the years 2014 through 2020. Beginning in 2021, provides for an annual tax levy based on (1) the employer's normal cost of the pension fund, plus (2) the annual amount necessary to amortize the fund's unfunded accrued liabilities over a period of 30 years from the effective date of the evaluation. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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

 

 

A BILL FOR

 

SB3421LRB097 19616 EFG 64870 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.
2    Beginning with the year 1972 and for each year thereafter
3the county shall levy a tax annually at a rate on the dollar of
4the value, as equalized or assessed by the Department of
5Revenue of all taxable property within the county that will
6produce, when extended, not to exceed an amount equal to the
7total amount of contributions made by the employees to the fund
8in the calendar year 2 years prior to the year for which the
9annual applicable tax is levied multiplied by .8 for the years
101972 through 1976; by .8 for the year 1977; by .87 for the year
111978; by .94 for the year 1979; by 1.02 for the year 1980; and
12by 1.10 for the year 1981; and by 1.18 for the year 1982; and by
131.36 for the year 1983; and by 1.54 for the years year 1984
14through 2013; by 2.25 for the years 2014 through 2016; and by
153.00 for the years 2017 through 2020 and for each year
16thereafter.
17    Beginning in the year 2021 and for each year thereafter,
18the county shall levy a tax annually upon all taxable property
19within the county at a rate that will produce a sum that, when
20added to the amounts deducted from the salaries of the
21employees or otherwise contributed by them and revenues from
22other sources, will equal a sum sufficient to meet the annual
23actuarial requirements of the pension fund as determined by a
24qualified actuary retained by the pension fund. For the
25purposes of this Section, the annual actuarial requirements of
26the pension fund are equal to (1) the employer's normal cost of

 

 

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

 

 

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1    (b) By January 10, annually, the board shall notify the
2county board of the requirement of this Article that this tax
3shall be levied. The board shall make an annual determination
4of the required county contributions, and shall certify the
5results thereof to the county board.
6    (c) The various sums to be contributed by the county board
7and allocated for the purposes of this Article and any interest
8to be contributed by the county shall be taken from the revenue
9derived from this tax and no money of the county derived from
10any source other than the levy and collection of this tax or
11the sale of tax anticipation warrants, except state or federal
12funds contributed for annuity and benefit purposes for
13employees of a county department of public aid under "The
14Illinois Public Aid Code", approved April 11, 1967, as now or
15hereafter amended, may be used to provide revenue for the fund.
16    If it is not possible or practicable for the county to make
17contributions for age and service annuity and widow's annuity
18concurrently with the employee contributions made for such
19purposes, such county shall make such contributions as soon as
20possible and practicable thereafter with interest thereon at
21the effective rate until the time it shall be made.
22    (d) With respect to employees whose wages are funded as
23participants under the Comprehensive Employment and Training
24Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2593-567, 88 Stat. 1845), hereinafter referred to as CETA,
26subsequent to October 1, 1978, and in instances where the board

 

 

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

 

 

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1    Sec. 10-107. Financing - Tax levy. The forest preserve
2district may levy an annual tax on the value, as equalized or
3assessed by the Department of Revenue, of all taxable property
4in the district for the purpose of providing revenue for the
5fund. The rate of such tax in any year may not exceed the rate
6herein specified for that year or the rate which will produce,
7when extended, the sum herein stated for that year, whichever
8is higher: for any year prior to 1970, .00103% or $195,000; for
9the year 1970, .00111% or $210,000; for the year 1971, .00116%
10or $220,000.
11    For the year 1972 and each year thereafter, the Forest
12Preserve District shall levy a tax annually at a rate on the
13dollar of the value, as equalized or assessed by the Department
14of Revenue upon all taxable property in the county, when
15extended, not to exceed an amount equal to the total amount of
16contributions by the employees to the fund made in the calendar
17year 2 years prior to the year for which the annual applicable
18tax is levied, multiplied by 1.25 for the year 1972; and by
191.30 for the years year 1973 through 2013; by 2.25 for the
20years 2014 through 2016; and by 3.00 for the years 2017 through
212020 and for each year thereafter.
22    Beginning in the year 2021 and for each year thereafter,
23the forest preserve district shall levy a tax annually upon all
24taxable property within the district at a rate that will
25produce a sum that, when added to the amounts deducted from the
26salaries of the employees or otherwise contributed by them, and

 

 

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

 

 

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1separate fund.
2    The Board may establish a manpower program reserve, or a
3special forest preserve district contribution rate, with
4respect to employees whose wages are funded as program
5participants under the Comprehensive Employment and Training
6Act of 1973 in the manner provided in subsection (d) or (e),
7respectively, of Section 9-169.
8(Source: P.A. 81-1509.)
 
9    Section 90. The State Mandates Act is amended by adding
10Section 8.36 as follows:
 
11    (30 ILCS 805/8.36 new)
12    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
13of this Act, no reimbursement by the State is required for the
14implementation of any mandate created by this amendatory Act of
15the 97th General Assembly.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.