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Full Text of SB3628  97th General Assembly

SB3628 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3628

 

Introduced 2/10/2012, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-127  from Ch. 108 1/2, par. 17-127
40 ILCS 5/17-129  from Ch. 108 1/2, par. 17-129

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that, beginning in State fiscal year 2013, the State shall make annual contributions to the Fund. For State fiscal year 2013, the contribution shall be $270,347,800. For each year thereafter, the Board shall certify to the Governor by December 15th the amount of the required State contribution for the coming fiscal year. The certified contribution shall be equal to 10% of the certified State contribution to the downstate Teachers' Retirement System. 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

 

SB3628LRB097 19189 EFG 64431 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 17-127 and 17-129 as follows:
 
6    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
7    Sec. 17-127. Financing; revenues for the Fund.
8    (a) The revenues for the Fund shall consist of: (1) amounts
9paid into the Fund by contributors thereto and from employer
10contributions and State appropriations in accordance with this
11Article; (2) amounts contributed to the Fund by an Employer;
12(3) amounts contributed to the Fund pursuant to any law now in
13force or hereafter to be enacted; (4) contributions from any
14other source; and (5) the earnings on investments.
15    (b) The General Assembly finds that for many years the
16State has contributed to the Fund an annual amount that is
17between 20% and 30% of the amount of the annual State
18contribution to the Article 16 retirement system, and the
19General Assembly declares that it is its goal and intention to
20continue this level of contribution to the Fund in the future.
21    (c) For Beginning in State fiscal year 1999 through State
22fiscal year 2012, the State shall include in its annual
23contribution to the Fund an additional amount equal to 0.544%

 

 

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1of the Fund's total teacher payroll; except that this
2additional contribution need not be made in a fiscal year if
3the Board has certified in the previous fiscal year that the
4Fund is at least 90% funded, based on actuarial determinations.
5These additional State contributions are intended to offset a
6portion of the cost to the Fund of the increases in retirement
7benefits resulting from Public Act 90-582 this amendatory Act
8of 1998.
9    (d) Beginning in State fiscal year 2013, the State shall
10make annual contributions to the Fund. For State fiscal year
112013, the contribution shall be $270,347,800. For each year
12thereafter, the Board shall certify to the Governor by December
1315th the amount of the required State contribution to the Fund
14for the coming fiscal year. The certified contribution shall be
15equal to 10% of the contribution certified for the coming
16fiscal year under subsection (a-1) of Section 16-158 of this
17Code.
18(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
1990-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
20    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
21    Sec. 17-129. Employer contributions; deficiency in Fund.
22    (a) If in any fiscal year of the Board of Education ending
23prior to 1997 the total amounts paid to the Fund from the Board
24of Education (other than under this subsection, and other than
25amounts used for making or "picking up" contributions on behalf

 

 

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1of teachers) and from the State do not equal the total
2contributions made by or on behalf of the teachers for such
3year, or if the total income of the Fund in any such fiscal
4year of the Board of Education from all sources is less than
5the total such expenditures by the Fund for such year, the
6Board of Education shall, in the next succeeding year, in
7addition to any other payment to the Fund set apart and
8appropriate from moneys from its tax levy for educational
9purposes, a sum sufficient to remove such deficiency or
10deficiencies, and promptly pay such sum into the Fund in order
11to restore any of the reserves of the Fund that may have been
12so temporarily applied. Any amounts received by the Fund after
13December 4, 1997 from State appropriations, including under
14Section 17-127, shall be a credit against and shall fully
15satisfy any obligation that may have arisen, or be claimed to
16have arisen, under this subsection (a) as a result of any
17deficiency or deficiencies in the fiscal year of the Board of
18Education ending in calendar year 1997.
19    (b) (i) Notwithstanding any other provision of this
20Section, and notwithstanding any prior certification by the
21Board under subsection (c) for fiscal year 2011, the Board of
22Education's total required contribution to the Fund for fiscal
23year 2011 under this Section is $187,000,000.
24    (ii) Notwithstanding any other provision of this Section,
25the Board of Education's total required contribution to the
26Fund for fiscal year 2012 under this Section is $192,000,000.

 

 

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1    (iii) Notwithstanding any other provision of this Section,
2the Board of Education's total required contribution to the
3Fund for fiscal year 2013 under this Section is $196,000,000.
4    (iv) For fiscal years 2014 through 2059, the minimum
5contribution to the Fund to be made by the Board of Education
6in each fiscal year shall be an amount determined by the Fund
7to be sufficient to bring the total assets of the Fund up to
890% of the total actuarial liabilities of the Fund by the end
9of fiscal year 2059. In making these determinations, the
10required Board of Education contribution shall be calculated
11each year as a level percentage of the applicable employee
12payrolls over the years remaining to and including fiscal year
132059 and shall be determined under the projected unit credit
14actuarial cost method.
15    (v) Beginning in fiscal year 2060, the minimum Board of
16Education contribution for each fiscal year shall be the amount
17needed to maintain the total assets of the Fund at 90% of the
18total actuarial liabilities of the Fund.
19    (vi) Notwithstanding any other provision of this
20subsection (b), for any fiscal year, the contribution to the
21Fund from the Board of Education shall not be required to be in
22excess of the amount calculated as needed to maintain the
23assets (or cause the assets to be) at the 90% level by the end
24of the fiscal year.
25    (vii) Any contribution by the State to or for the benefit
26of the Fund, including, without limitation, as referred to

 

 

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1under Section 17-127, shall be a credit against any
2contribution required to be made by the Board of Education
3under this subsection (b) if the Board has certified in the
4previous fiscal year that the total assets of the Fund are at
5least 90% of the total actuarial liabilities of the Fund.
6    (c) The Board shall determine the amount of Board of
7Education contributions required for each fiscal year on the
8basis of the actuarial tables and other assumptions adopted by
9the Board and the recommendations of the actuary, in order to
10meet the minimum contribution requirements of subsections (a)
11and (b). Annually, on or before February 28, the Board shall
12certify to the Board of Education the amount of the required
13Board of Education contribution for the coming fiscal year. The
14certification shall include a copy of the actuarial
15recommendations upon which it is based.
16(Source: P.A. 96-889, eff. 4-14-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.