Full Text of SB1858 96th General Assembly
SB1858ham001 96TH GENERAL ASSEMBLY
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Personnel and Pensions Committee
Filed: 5/28/2009
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| AMENDMENT TO SENATE BILL 1858
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| AMENDMENT NO. ______. Amend Senate Bill 1858 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Pension Code is amended by | 5 |
| changing Section 17-129 as follows:
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| (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
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| Sec. 17-129. Employer contributions; deficiency in Fund.
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| (a) If in any fiscal year of the Board of Education ending | 9 |
| prior to 1997 the
total amounts paid to the Fund from the Board | 10 |
| of Education (other than under
this subsection, and other than | 11 |
| amounts used for making or "picking up"
contributions on behalf | 12 |
| of teachers) and from the State do not equal the total
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| contributions made by or on behalf of the teachers for such | 14 |
| year, or if the
total income of the Fund in any such fiscal | 15 |
| year of the Board of Education from
all sources is less than | 16 |
| the total such expenditures by the Fund for such year,
the |
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| Board of Education shall, in the next succeeding year, in | 2 |
| addition to any
other payment to the Fund set apart and | 3 |
| appropriate from moneys from its tax
levy for educational | 4 |
| purposes, a sum sufficient to remove such deficiency or
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| deficiencies, and promptly pay such sum into the Fund in order | 6 |
| to restore any
of the reserves of the Fund that may have been | 7 |
| so temporarily applied. Any
amounts received by the Fund after | 8 |
| December 4, 1997 from State appropriations, including under | 9 |
| Section
17-127, shall be a credit against and shall fully | 10 |
| satisfy any obligation that
may have arisen, or be claimed to | 11 |
| have arisen, under this subsection (a) as a
result of any | 12 |
| deficiency or deficiencies in the fiscal year of the Board of
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| Education ending in calendar year 1997.
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| (b) (i) Notwithstanding any other provision of this | 15 |
| Section, the Board of Education's total required contribution | 16 |
| to the Fund for fiscal year 2010 under this Section is | 17 |
| 208,000,000. For fiscal years 2011 through 2045, the minimum | 18 |
| contribution
to the Fund to be made by the Board of Education | 19 |
| in each fiscal year shall be
an amount determined by the Fund | 20 |
| to be sufficient to bring the total assets of
the Fund up to | 21 |
| 90% of the total actuarial liabilities of the Fund by the end | 22 |
| of
fiscal year 2045. In making these determinations, the | 23 |
| required Board of
Education contribution shall be calculated | 24 |
| each year as a level percentage of
the applicable employee | 25 |
| payrolls over the years remaining to and including
fiscal year | 26 |
| 2045 and shall
be determined under the projected unit credit |
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| actuarial cost method.
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| (ii) Notwithstanding any other provision of this Section, | 3 |
| the Board of Education's total required contribution to the | 4 |
| Fund for fiscal year 2011 under this Section is $227,000,000. | 5 |
| For fiscal years 1999 through 2010, the Board of Education's
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| contribution to the Fund, as a percentage of the applicable | 7 |
| employee payroll,
shall be increased in equal annual increments | 8 |
| so that by fiscal year 2011, the
Board of Education is | 9 |
| contributing at the rate required under this subsection.
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| (iii) Notwithstanding any other provision of this Section, | 11 |
| the Board of Education's total required contribution to the | 12 |
| Fund for fiscal year 2012 under this Section is $247,000,000. | 13 |
| Beginning in fiscal year 2046, the minimum Board of Education
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| contribution for each fiscal year shall be the amount needed to | 15 |
| maintain the
total assets of the Fund at 90% of the total | 16 |
| actuarial liabilities of the Fund.
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| (iv) For fiscal years 2013 through 2045, the minimum | 18 |
| contribution to the Fund to be made by the Board of Education | 19 |
| in each fiscal year shall be an amount determined by the Fund | 20 |
| to be sufficient to bring the total assets of the Fund up to | 21 |
| 90% of the total actuarial liabilities of the Fund by the end | 22 |
| of fiscal year 2045. In making these determinations, the | 23 |
| required Board of Education contribution shall be calculated | 24 |
| each year as a level percentage of the applicable employee | 25 |
| payrolls over the years remaining to and including fiscal year | 26 |
| 2045 and shall be determined under the projected unit credit |
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| actuarial cost method. Except as provided in subsection (c) of | 2 |
| this Section, the Board of Education's required contribution to | 3 |
| the Fund under this Section in any fiscal year after 2012 shall | 4 |
| not increase by more than 9% over the Board of Education's | 5 |
| required contribution in the preceding fiscal year. | 6 |
| Notwithstanding the provisions of paragraphs (i), (ii), and | 7 |
| (iii)
of this subsection (b), for any fiscal year the | 8 |
| contribution to the Fund from
the Board of Education shall not | 9 |
| be required to be in excess of the amount
calculated as needed | 10 |
| to maintain the assets (or cause the assets to be) at the
90% | 11 |
| level by the end of the fiscal year.
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| (v) Beginning in fiscal year 2046, the minimum Board of | 13 |
| Education contribution for each fiscal year shall be the amount | 14 |
| needed to maintain the total assets of the Fund at 90% of the | 15 |
| total actuarial liabilities of the Fund. Any contribution by | 16 |
| the State to or for the benefit of the Fund,
including, without | 17 |
| limitation, as referred to under Section 17-127, shall be a
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| credit against any contribution required to be made by the | 19 |
| Board of Education
under this subsection (b).
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| (vi) Notwithstanding the provisions of this subsection | 21 |
| (b), for any fiscal year the contribution to the Fund from the | 22 |
| Board of Education shall not be required to he in excess of the | 23 |
| amount calculated as needed to maintain the assets (or cause | 24 |
| the assets to be) at the 90% level by the end of the fiscal | 25 |
| year. | 26 |
| (vii) Any contribution by the State to or for the benefit |
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| of the Fund, including, without limitation as referred to under | 2 |
| Section 17-127, shall be a credit against any contribution | 3 |
| required to be made by the Board of Education under this | 4 |
| subsection (b). | 5 |
| (c) (i) The Board shall determine the amount of Board of | 6 |
| Education
contributions required for each fiscal year on the | 7 |
| basis of the actuarial
tables and other assumptions adopted by | 8 |
| the Board and the recommendations of
the actuary, in order to | 9 |
| meet the minimum contribution requirements of
subsections (a) | 10 |
| and (b). Annually, on or before February 28, the Board shall
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| certify to the Board of Education the amount of the required | 12 |
| Board of Education
contribution for the coming fiscal year. The | 13 |
| certification shall include a
copy of the actuarial | 14 |
| recommendations upon which it is based.
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| (ii) If the funded ratio is projected to decline below 50% | 16 |
| in any year before 2045, then the Board shall also determine | 17 |
| the increased contribution required each year as a level | 18 |
| percentage of payroll over the years remaining until 2045 using | 19 |
| the projected unit credit actuarial cost method so the funded | 20 |
| ratio does not decline below 50% and include that determination | 21 |
| in its annual certification. If the actual funded ratio | 22 |
| declines below 50% in any year prior to 2045, the Board shall | 23 |
| also determine the increased contribution required each year as | 24 |
| a level percentage of payroll during the years after the then | 25 |
| current year using the projected unit credit actuarial cost | 26 |
| method so the funded ratio is projected to reach at least 50% |
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| no later than 10 years after the then current year and include | 2 |
| that determination in its annual certification. | 3 |
| (Source: P.A. 89-15, eff. 5-30-95; 90-548, eff. 12-4-97; | 4 |
| 90-566, eff. 1-2-98;
90-655, eff. 7-30-98.)
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| Section 90. The State Mandates Act is amended by adding | 6 |
| Section 8.33 as follows: | 7 |
| (30 ILCS 805/8.33 new) | 8 |
| Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | 9 |
| of this Act, no reimbursement by the State is required for the | 10 |
| implementation of any mandate created by this amendatory Act of | 11 |
| the 96th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.".
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