Full Text of HB1719 97th General Assembly
HB1719sam001 97TH GENERAL ASSEMBLY | Sen. Kwame Raoul Filed: 5/26/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1719
| 2 | | AMENDMENT NO. ______. Amend House Bill 1719 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 5-168 and 6-165 as follows:
| 6 | | (40 ILCS 5/5-168)
(from Ch. 108 1/2, par. 5-168)
| 7 | | Sec. 5-168. Financing.
| 8 | | (a) Except as expressly provided in this Section, the city | 9 | | shall levy a
tax annually upon all taxable property therein for | 10 | | the purpose of providing
revenue for the fund.
| 11 | | The tax shall be at a rate that will produce a sum which, | 12 | | when added to the
amounts deducted from the policemen's | 13 | | salaries and the amounts deposited in
accordance with | 14 | | subsection (g), is sufficient for the purposes of the fund.
| 15 | | For the years 1968 and 1969, the city council shall levy a | 16 | | tax
annually at a rate on the dollar of the assessed
valuation |
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| 1 | | of all taxable property that will produce, when extended, not
| 2 | | to exceed $9,700,000. Beginning with the year 1970 and through | 3 | | 2014, the city council shall levy a tax annually at a rate on | 4 | | the
dollar of the assessed valuation of all taxable property | 5 | | that will
produce when extended an amount not to exceed the | 6 | | total amount of
contributions by the policemen to the Fund made | 7 | | in the calendar year 2
years before the year for which the | 8 | | applicable annual tax is levied,
multiplied by 1.40 for the tax | 9 | | levy year 1970; by 1.50 for the year
1971; by 1.65 for 1972; by | 10 | | 1.85 for 1973; by 1.90 for 1974; by 1.97 for
1975 through 1981; | 11 | | by 2.00 for 1982 and for each year through 2014. Beginning in | 12 | | 2015, the city council shall levy a tax annually at a rate on | 13 | | the dollar of the assessed valuation of all taxable property | 14 | | that will produce when extended an annual amount that is equal | 15 | | to (1) the normal cost to the Fund, plus (2) an annual amount | 16 | | sufficient to bring the total assets of the Fund up to 80% 90% | 17 | | of the total actuarial liabilities of the Fund by the end of | 18 | | fiscal year 2065 2040 , as annually updated and determined by an | 19 | | enrolled actuary employed by the Illinois Department of | 20 | | Insurance or by an enrolled actuary retained by the Fund or the | 21 | | city. In making these determinations, the required minimum | 22 | | employer contribution shall be calculated each year as a level | 23 | | percentage of payroll over the years remaining up to and | 24 | | including fiscal year 2065 2040 and shall be determined under | 25 | | the projected unit credit actuarial cost method. For the | 26 | | purposes of this subsection (a), contributions by the policeman |
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| 1 | | to the Fund shall not include payments made by a policeman to | 2 | | establish credit under Section 5-214.2 of this Code.
| 3 | | (a-5) For purposes of determining the required employer | 4 | | contribution to the Fund, the value of the Fund's assets shall | 5 | | be equal to the actuarial value of the Fund's assets, which | 6 | | shall be calculated as follows: | 7 | | (1) On March 30, 2011, the actuarial value of the | 8 | | Fund's assets shall be equal to the market value of the | 9 | | assets as of that date. | 10 | | (2) In determining the actuarial value of the Fund's | 11 | | assets for fiscal years after March 30, 2011, any actuarial | 12 | | gains or losses from investment return incurred in a fiscal | 13 | | year shall be recognized in equal annual amounts over the | 14 | | 5-year period following that fiscal year. | 15 | | (a-7) If the city fails to transmit to the Fund | 16 | | contributions required of it under this Article for more than | 17 | | 90 days after the payment of those contributions is due, the | 18 | | Fund may, after giving notice to the city, certify to the State | 19 | | Comptroller the amounts of the delinquent payments, and the | 20 | | Comptroller must, beginning in fiscal year 2016, deduct and | 21 | | deposit into the Fund the certified amounts or a portion of | 22 | | those amounts from the following proportions of grants of State | 23 | | funds to the city: | 24 | | (1) in fiscal year 2016, one-third of the total amount | 25 | | of any grants of State funds to the city; | 26 | | (2) in fiscal year 2017, two-thirds of the total amount |
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| 1 | | of any grants of State funds to the city; and | 2 | | (3) in fiscal year 2018 and each fiscal year | 3 | | thereafter, the total amount of any grants of State funds | 4 | | to the city. | 5 | | The State Comptroller may not deduct from any grants of | 6 | | State funds to the city more than the amount of delinquent | 7 | | payments certified to the State Comptroller by the Fund. | 8 | | (b) The tax shall be levied and collected in like manner | 9 | | with the
general taxes of the city, and is in addition to all | 10 | | other taxes which the
city is now or may hereafter be | 11 | | authorized to levy upon all taxable property
therein, and is | 12 | | exclusive of and in addition to the amount of tax the city is
| 13 | | now or may hereafter be authorized to levy for general purposes | 14 | | under any
law which may limit the amount of tax which the city | 15 | | may levy for general
purposes. The county clerk of the county | 16 | | in which the city is located, in
reducing tax levies under | 17 | | Section 8-3-1 of the Illinois
Municipal Code, shall not | 18 | | consider the tax herein authorized as a part
of the general tax | 19 | | levy for city purposes, and shall not include the tax
in any | 20 | | limitation of the percent of the assessed valuation upon which
| 21 | | taxes are required to be extended for the city.
| 22 | | (c) On or before January 10 of each year, the board shall | 23 | | notify the
city council of the requirement that the tax herein | 24 | | authorized be levied by
the city council for that current year. | 25 | | The board shall compute the
amounts necessary for the purposes | 26 | | of this fund to be credited to the
reserves established and |
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| 1 | | maintained within the fund; shall make an
annual determination | 2 | | of the amount of the required city contributions;
and shall | 3 | | certify the results thereof to the city council.
| 4 | | As soon as any revenue derived from the tax is collected it | 5 | | shall be
paid to the city treasurer of the city and shall be | 6 | | held by him for the
benefit of the fund in accordance with this | 7 | | Article.
| 8 | | (d) If the funds available are insufficient during any year | 9 | | to meet the
requirements of this Article, the city may issue | 10 | | tax anticipation warrants
against the tax levy for the current | 11 | | fiscal year.
| 12 | | (e) The various sums, including interest, to be contributed | 13 | | by the city,
shall be taken from the revenue derived from such | 14 | | tax or otherwise as expressly
provided in this Section. Any | 15 | | moneys of the city derived from any source other
than the tax | 16 | | herein authorized shall not be used for any purpose of the fund
| 17 | | nor the cost of administration thereof, unless applied to make | 18 | | the deposit
expressly authorized in this Section
or the | 19 | | additional city contributions required under subsection (h).
| 20 | | (f) If it is not possible or practicable for the city to | 21 | | make its
contributions at the time that salary deductions are | 22 | | made, the city
shall make such contributions as soon as | 23 | | possible thereafter, with
interest thereon to the time it is | 24 | | made.
| 25 | | (g) In lieu of levying all or a portion of the tax required | 26 | | under this
Section in any year, the city may deposit with the |
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| 1 | | city treasurer no later than
March 1 of that year for the | 2 | | benefit of the fund, to be held in accordance with
this | 3 | | Article, an amount that, together with the taxes levied under | 4 | | this Section
for that year, is not less than the amount of the | 5 | | city contributions for that
year as certified by the board to | 6 | | the city council. The deposit may be derived
from any source | 7 | | legally available for that purpose, including, but not limited
| 8 | | to, the proceeds of city borrowings. The making of a deposit | 9 | | shall satisfy
fully the requirements of this Section for that | 10 | | year to the extent of the
amounts so deposited. Amounts | 11 | | deposited under this subsection may be used by
the fund for any | 12 | | of the purposes for which the proceeds of the tax levied under
| 13 | | this Section may be used, including the payment of any amount | 14 | | that is otherwise
required by this Article to be paid from the | 15 | | proceeds of that tax.
| 16 | | (h) In addition to the contributions required under the | 17 | | other provisions
of this Article, by November 1 of the | 18 | | following specified years, the city shall
deposit with the city | 19 | | treasurer for the benefit of the fund, to be held and
used in | 20 | | accordance with this Article, the following specified amounts:
| 21 | | $6,300,000 in 1999;
$5,880,000 in 2000;
$5,460,000 in 2001;
| 22 | | $5,040,000 in 2002; and
$4,620,000 in 2003.
| 23 | | The additional city contributions required under this | 24 | | subsection are
intended to decrease the unfunded liability of | 25 | | the fund and shall not decrease
the amount of the city | 26 | | contributions required under the other provisions of
this |
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| 1 | | Article. The additional city contributions made under this | 2 | | subsection
may be used by the fund for any of its lawful | 3 | | purposes.
| 4 | | (Source: P.A. 95-1036, eff. 2-17-09; 96-1495, eff. 1-1-11.)
| 5 | | (40 ILCS 5/6-165)
(from Ch. 108 1/2, par. 6-165)
| 6 | | Sec. 6-165. Financing; tax.
| 7 | | (a) Except as expressly provided in this
Section, each city | 8 | | shall levy a tax annually upon all
taxable property therein for | 9 | | the purpose of providing revenue for the
fund. For the years | 10 | | prior to the year 1960, the tax rate shall be as
provided for | 11 | | in the "Firemen's Annuity and Benefit Fund of the Illinois
| 12 | | Municipal Code". The tax, from and after January 1, 1968 to and
| 13 | | including the year 1971, shall not exceed .0863% of the value, | 14 | | as
equalized or assessed by the Department of Revenue, of
all | 15 | | taxable property in the city. Beginning with the year 1972 and | 16 | | through 2014, the city shall levy a tax annually at a rate on | 17 | | the
dollar of the value, as equalized or assessed by the | 18 | | Department of Revenue
of all taxable property within such city | 19 | | that will
produce, when extended, not to exceed an amount equal | 20 | | to the total
amount of contributions by the employees to the | 21 | | fund made in the
calendar year 2 years prior to the year for | 22 | | which the annual applicable
tax is levied, multiplied by 2.23 | 23 | | through the calendar year 1981, and by
2.26 for the year 1982 | 24 | | and for each year through 2014. Beginning in 2015, the city | 25 | | council shall levy a tax annually at a rate on the dollar of |
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| 1 | | the assessed valuation of all taxable property that will | 2 | | produce when extended an annual amount that is equal to (1) the | 3 | | normal cost to the Fund, plus (2) an annual amount sufficient | 4 | | to bring the total assets of the Fund up to 80% 90% of the total | 5 | | actuarial liabilities of the Fund by the end of fiscal year | 6 | | 2065 2040 , as annually updated and determined by an enrolled | 7 | | actuary employed by the Illinois Department of Insurance or by | 8 | | an enrolled actuary retained by the Fund or the city. In making | 9 | | these determinations, the required minimum employer | 10 | | contribution shall be calculated each year as a level | 11 | | percentage of payroll over the years remaining up to and | 12 | | including fiscal year 2065 2040 and shall be determined under | 13 | | the projected unit credit actuarial cost method.
| 14 | | To provide revenue for the ordinary death benefit | 15 | | established by
Section 6-150 of this Article, in addition to | 16 | | the contributions by the firemen
for this purpose, the city | 17 | | council shall for the
year 1962 and each year thereafter | 18 | | annually levy a tax, which shall be
in addition to and | 19 | | exclusive of the taxes authorized to be levied under
the | 20 | | foregoing provisions of this Section, upon all taxable property | 21 | | in
the city, as equalized or assessed by the Department of | 22 | | Revenue, at such
rate per cent of the value of such property as | 23 | | shall be
sufficient to produce for each year the sum of | 24 | | $142,000.
| 25 | | The amounts produced by the taxes levied annually, together | 26 | | with the
deposit expressly authorized in this Section, shall be
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| 1 | | sufficient, when added to the amounts deducted from the | 2 | | salaries of
firemen and applied to the fund, to provide for the | 3 | | purposes of the
fund.
| 4 | | (a-5) For purposes of determining the required employer | 5 | | contribution to the Fund, the value of the Fund's assets shall | 6 | | be equal to the actuarial value of the Fund's assets, which | 7 | | shall be calculated as follows: | 8 | | (1) On March 30, 2011, the actuarial value of the | 9 | | Fund's assets shall be equal to the market value of the | 10 | | assets as of that date. | 11 | | (2) In determining the actuarial value of the Fund's | 12 | | assets for fiscal years after March 30, 2011, any actuarial | 13 | | gains or losses from investment return incurred in a fiscal | 14 | | year shall be recognized in equal annual amounts over the | 15 | | 5-year period following that fiscal year. | 16 | | (a-7) If the city fails to transmit to the Fund | 17 | | contributions required of it under this Article for more than | 18 | | 90 days after the payment of those contributions is due, the | 19 | | Fund may, after giving notice to the city, certify to the State | 20 | | Comptroller the amounts of the delinquent payments, and the | 21 | | Comptroller must, beginning in fiscal year 2016, deduct and | 22 | | deposit into the Fund the certified amounts or a portion of | 23 | | those amounts from the following proportions of grants of State | 24 | | funds to the city: | 25 | | (1) in fiscal year 2016, one-third of the total amount | 26 | | of any grants of State funds to the city; |
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| 1 | | (2) in fiscal year 2017, two-thirds of the total amount | 2 | | of any grants of State funds to the city; and | 3 | | (3) in fiscal year 2018 and each fiscal year | 4 | | thereafter, the total amount of any grants of State funds | 5 | | to the city. | 6 | | The State Comptroller may not deduct from any grants of | 7 | | State funds to the city more than the amount of delinquent | 8 | | payments certified to the State Comptroller by the Fund. | 9 | | (b) The taxes shall be levied and collected in like manner | 10 | | with the
general taxes of the city, and shall be in addition to | 11 | | all other taxes
which the city may levy upon all taxable | 12 | | property therein and shall be
exclusive of and in addition to | 13 | | the amount of tax the city may levy for
general purposes under | 14 | | Section 8-3-1 of the Illinois Municipal Code,
approved May 29, | 15 | | 1961, as amended, or under any other law or laws which
may | 16 | | limit the amount of tax which the city may levy for general
| 17 | | purposes.
| 18 | | (c) The amounts of the taxes to be levied in each year | 19 | | shall be
certified to the city council by the board.
| 20 | | (d) As soon as any revenue derived from such taxes is | 21 | | collected, it
shall be paid to the city treasurer and held for | 22 | | the benefit of the fund, and
all such revenue shall be paid | 23 | | into the fund in accordance with the
provisions of this | 24 | | Article.
| 25 | | (e) If the funds available are insufficient during any year | 26 | | to
meet the requirements of this Article, the city may issue |
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| 1 | | tax anticipation
warrants, against the tax levies herein | 2 | | authorized for the current
fiscal year.
| 3 | | (f) The various sums, hereinafter stated, including | 4 | | interest, to be
contributed by the city, shall be taken from | 5 | | the revenue derived from the taxes
or otherwise as expressly | 6 | | provided in this Section. Except for defraying the
cost of | 7 | | administration of the fund during the calendar year in which a | 8 | | city
first attains a population of 500,000 and comes under the | 9 | | provisions of this
Article and the first calendar year | 10 | | thereafter, any money of the city derived
from any source other | 11 | | than these taxes or the sale of tax anticipation warrants
shall | 12 | | not be used to provide revenue for the fund, nor to pay any | 13 | | part of the
cost of administration thereof, unless applied to | 14 | | make the deposit expressly
authorized in this Section
or the | 15 | | additional city contributions required under subsection (h).
| 16 | | (g) In lieu of levying all or a portion of the tax required | 17 | | under this
Section in any year, the city may deposit with the | 18 | | city treasurer no later than
March 1 of that year for the | 19 | | benefit of the fund, to be held in accordance with
this | 20 | | Article, an amount that, together with the taxes levied under | 21 | | this Section
for that year, is not less than the amount of the | 22 | | city contributions for that
year as certified by the board to | 23 | | the city council. The deposit may be derived
from any source | 24 | | legally available for that purpose, including, but not limited
| 25 | | to, the proceeds of city borrowings. The making of a deposit | 26 | | shall satisfy
fully the requirements of this Section for that |
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| 1 | | year to the extent of the
amounts so deposited. Amounts | 2 | | deposited under this subsection may be used
by the fund for any | 3 | | of the purposes for which the proceeds of the taxes levied
| 4 | | under this Section may be used, including the payment of any | 5 | | amount that is
otherwise required by this Article to be paid | 6 | | from the proceeds of those
taxes.
| 7 | | (h) In addition to the contributions required under the | 8 | | other provisions
of this Article, by November 1 of the | 9 | | following specified years, the city shall
deposit with the city | 10 | | treasurer for the benefit of the fund, to be held and
used in | 11 | | accordance with this Article, the following specified amounts:
| 12 | | $6,300,000 in 1999;
$5,880,000 in 2000;
$5,460,000 in 2001;
| 13 | | $5,040,000 in 2002; and
$4,620,000 in 2003.
| 14 | | The additional city contributions required under this | 15 | | subsection are
intended to decrease the unfunded liability of | 16 | | the fund and shall not decrease
the amount of the city | 17 | | contributions required under the other provisions of
this | 18 | | Article. The additional city contributions made under this | 19 | | subsection
may be used by the fund for any of its lawful | 20 | | purposes.
| 21 | | (Source: P.A. 96-1495, eff. 1-1-11.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.".
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