HB3178 99TH GENERAL ASSEMBLY

LRB099 10186 EFG 31544 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3178

Introduced , by Rep. Elaine Nekritz

SYNOPSIS AS INTRODUCED:

30 ILCS 5/2-8.1

Amends the Illinois State Actuary Act. Requires the State Actuary to conduct a full-scope audit of each of the 5 State-funded retirement systems at least once every 5 years. The audit must fully replicate the actuarial valuation used to report the financial condition of the system, and shall include an examination of methods and assumptions used for the actuarial valuation for reasonableness and internal consistency. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 5. The Illinois State Auditing Act is amended by changing Section 2-8.1 as follows:

(30 ILCS 5/2-8.1)

Sec. 2-8.1. Actuarial Responsibilities.

(a) The Auditor General shall contract with or hire an actuary to serve as the State Actuary. The State Actuary shall be retained by, serve at the pleasure of, and be under the supervision of the Auditor General and shall be paid from appropriations to the office of the Auditor General. The State Actuary may be selected by the Auditor General without engaging in a competitive procurement process.

(b) The State Actuary shall:

(1) review assumptions and valuations prepared by actuaries retained by the boards of trustees of the State-funded retirement systems;

(2) issue preliminary reports to the boards of trustees of the State-funded retirement systems concerning proposed certifications of required State contributions submitted to the State Actuary by those boards;

(3) cooperate with the boards of trustees of the State-funded retirement systems to identify recommended changes in actuarial assumptions that the boards must consider before finalizing their certifications of the required State contributions;

(4) conduct reviews of the actuarial practices of the boards of trustees of the State-funded retirement systems;

(5) make additional reports as directed by joint resolution of the General Assembly; and

(6) perform any other duties assigned by the Auditor General, including, but not limited to, reviews of the actuarial practices of other entities.

(c) On or before January 1, 2013 and each January 1 thereafter, the Auditor General shall submit a written report to the General Assembly and Governor documenting the initial assumptions and valuations prepared by actuaries retained by the boards of trustees of the State-funded retirement systems, any changes recommended by the State Actuary in the actuarial assumptions, and the responses of each board to the State Actuary's recommendations.

(d) For the purposes of this Section, "State-funded retirement system" means a retirement system established pursuant to Article 2, 14, 15, 16, or 18 of the Illinois Pension Code.

(7) At least once every 5 years, the State Actuary shall fully replicate the actuarial valuation used to report the financial condition of each of the 5 State-funded retirement systems, based on the same census data, assumptions, and actuarial methods used in the actuarial valuation. The full-scope actuarial audit shall include an examination of methods and assumptions used for the actuarial valuation for reasonableness and internal consistency.

(Source: P.A. 97-694, eff. 6-18-12.)

Section 99. Effective date. This Act takes effect upon becoming law.