HB6157 97TH GENERAL ASSEMBLY

LRB097 21139 JDS 68583 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6157

Introduced , by Rep. Darlene J. Senger

SYNOPSIS AS INTRODUCED:

40 ILCS 5/8-174.2 new
40 ILCS 5/8-191	from Ch. 108 1/2, par. 8-191
40 ILCS 5/11-179.1 new
40 ILCS 5/11-180	from Ch. 108 1/2, par. 11-180
40 ILCS 5/12-155.2 new
40 ILCS 5/17-129	from Ch. 108 1/2, par. 17-129
30 ILCS 805/8.36 new

Amends the Chicago Municipal, Chicago Laborers, Chicago Park District, and Chicago Teachers Articles of the Illinois Pension Code. In every affected Article, except the Chicago Teachers Article, establishes a minimum contribution that must be paid to the affected Funds by employers during each fiscal year beginning in fiscal year 2013. In the Chicago Teachers Article, changes the required minimum contribution so that the Fund is 90% funded by 2046 (rather than 2060). In the Chicago Municipal and Chicago Laborers Articles, requires the amounts that must be paid for annuities, benefits, and administrative expenses to be paid by the city (rather than by the city from the prescribed tax levy). Amends the State Mandates Act to require implementation without reimbursement. Effective July 1, 2012.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Sections 8-191, 11-180, and 17-129 and by adding Sections 8-174.2, 11-179.1, and 12-155.2 as follows:

(40 ILCS 5/8-174.2 new)

Sec. 8-174.2. Minimum required employer contributions. Notwithstanding subsection (a) of Section 8-174.1, the minimum required employer contribution to the Fund for each fiscal year shall be:

(1) for fiscal years 2013 through 2045, the amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2045, calculated as a level percentage of payroll over the years remaining to and including fiscal year 2045 using the projected unit credit actuarial cost method; and

(2) for fiscal year 2046 and thereafter, the amount needed to maintain the total assets of the Fund at 90% of the actuarial liabilities of the Fund.

(40 ILCS 5/8-191) (from Ch. 108 1/2, par. 8-191)

Sec. 8-191. Estimates of sums required for certain annuities and benefits.

The board shall estimate the amounts required each year to pay for all annuities and benefits and administrative expenses. The amounts shall be paid into the fund annually by the city from the prescribed tax levy.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/11-179.1 new)

Sec. 11-179.1. Minimum required contributions by city. The minimum required contribution by the city to the Fund for each fiscal year shall be:

(1) for fiscal years 2013 through 2045, the amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2045, calculated as a level percentage of payroll over the years remaining to and including fiscal year 2045 using the projected unit credit actuarial cost method; and

(2) for fiscal year 2046 and thereafter, the amount needed to maintain the total assets of the Fund at 90% of the actuarial liabilities of the Fund.

(40 ILCS 5/11-180) (from Ch. 108 1/2, par. 11-180)

Sec. 11-180. Estimates of sums required for certain annuities and benefits.

The board shall estimate the amounts required each year to pay for all annuities and benefits and administrative expenses. The amounts shall be paid into the fund annually by the city from the prescribed tax levy.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/12-155.2 new)

Sec. 12-155.2. Minimum required contributions by employer. The minimum required contribution by the employer to the Fund for each fiscal year shall be:

(1) for fiscal years 2013 through 2045, the amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2045, calculated as a level percentage of payroll over the years remaining to and including fiscal year 2045 using the projected unit credit actuarial cost method; and

(2) for fiscal year 2046 and thereafter, the amount needed to maintain the total assets of the Fund at 90% of the actuarial liabilities of the Fund.

(40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)

Sec. 17-129. Employer contributions; deficiency in Fund.

(a) If in any fiscal year of the Board of Education ending prior to 1997 the total amounts paid to the Fund from the Board of Education (other than under this subsection, and other than amounts used for making or "picking up" contributions on behalf of teachers) and from the State do not equal the total contributions made by or on behalf of the teachers for such year, or if the total income of the Fund in any such fiscal year of the Board of Education from all sources is less than the total such expenditures by the Fund for such year, the Board of Education shall, in the next succeeding year, in addition to any other payment to the Fund set apart and appropriate from moneys from its tax levy for educational purposes, a sum sufficient to remove such deficiency or deficiencies, and promptly pay such sum into the Fund in order to restore any of the reserves of the Fund that may have been so temporarily applied. Any amounts received by the Fund after December 4, 1997 from State appropriations, including under Section 17-127, shall be a credit against and shall fully satisfy any obligation that may have arisen, or be claimed to have arisen, under this subsection (a) as a result of any deficiency or deficiencies in the fiscal year of the Board of Education ending in calendar year 1997.

(b) (i) Notwithstanding any other provision of this Section, and notwithstanding any prior certification by the Board under subsection (c) for fiscal year 2011, the Board of Education's total required contribution to the Fund for fiscal year 2011 under this Section is $187,000,000.

(ii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2012 under this Section is $192,000,000.

(iii) (Blank). Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2013 under this Section is $196,000,000.

(iv) Notwithstanding any other provision of this Section or Section 17-130.1, for For fiscal years 2013 2014 through 2045 2059, the minimum contribution to the Fund to be made by the Board of Education in each fiscal year shall be an amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2045 2059. In making these determinations, the required Board of Education contribution shall be calculated each year as a level percentage of the applicable employee payrolls over the years remaining to and including fiscal year 2045 2059 and shall be determined under the projected unit credit actuarial cost method.

(v) Beginning in fiscal year 2046 2060, the minimum Board of Education contribution for each fiscal year shall be the amount needed to maintain the total assets of the Fund at 90% of the total actuarial liabilities of the Fund.

(vi) Notwithstanding any other provision of this subsection (b), for any fiscal year, the contribution to the Fund from the Board of Education shall not be required to be in excess of the amount calculated as needed to maintain the assets (or cause the assets to be) at the 90% level by the end of the fiscal year.

(vii) Any contribution by the State to or for the benefit of the Fund, including, without limitation, as referred to under Section 17-127, shall be a credit against any contribution required to be made by the Board of Education under this subsection (b).

(c) The Board shall determine the amount of Board of Education contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the recommendations of the actuary, in order to meet the minimum contribution requirements of subsections (a) and (b). Annually, on or before February 28, the Board shall certify to the Board of Education the amount of the required Board of Education contribution for the coming fiscal year. The certification shall include a copy of the actuarial recommendations upon which it is based.

(Source: P.A. 96-889, eff. 4-14-10.)

Section 90. The State Mandates Act is amended by adding Section 8.36 as follows:

(30 ILCS 805/8.36 new)

Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.

Section 99. Effective date. This Act takes effect July 1, 2012.