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90_HB3569 40 ILCS 5/17-127 from Ch. 108 1/2, par. 17-127 40 ILCS 5/22-1001 from Ch. 108 1/2, par. 22-1001 40 ILCS 5/22-1003 from Ch. 108 1/2, par. 22-1003 Amends the Illinois Pension Code to provide additional State funding for the Chicago Teachers Pension Fund. Increases the annual State contribution to the Fund over a 7-year phase-in period beginning in fiscal year 2000, so that by fiscal year 2007, the annual State contribution is sufficient, with the other revenues available to the Fund, to meet the normal cost and amortize the unfunded liabilities of the Fund over a period of 40 years. Effective immediately. LRB9011540EGfg LRB9011540EGfg 1 AN ACT to provide additional State funding for the Public 2 School Teachers' Pension and Retirement Fund of Chicago, 3 amending a named Act. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 5. The Illinois Pension Code is amended by 7 changing Sections 17-127, 22-1001, and 22-1003 as follows: 8 (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127) 9 Sec. 17-127. Financing; revenues for the Fund. 10 (a) The revenues for the Fund shall consist of: (1) 11 amounts paid into the Fund by contributors thereto and from 12 employer contributions and State appropriations in accordance 13 with this Article; (2) amounts contributed to the Fund by an 14 Employer; (3) amounts contributed to the Fund pursuant to any 15 law now in force or hereafter to be enacted; (4) 16 contributions from any other source; and (5) the earnings on 17 investments. 18 (b) The General Assembly finds that for many years the 19 State has contributed to the Fund an annual amount that is 20 between 20% and 30% of the amount of the annual State 21 contribution to the Article 16 retirement system, and the 22 General Assembly declares that it is its goal and intention 23 to continue this level of contribution to the Fund in State 24 fiscal years 1995, 1996, 1997, 1998, and 1999
the future. 25 (c) Beginning in State fiscal year 2000, the State 26 contribution, as a percentage of the applicable employee 27 payroll, shall be increased in equal annual increments over a 28 7-year phase-in period until the following funding level is 29 achieved. Beginning in State fiscal year 2007, the State of 30 Illinois shall make annual contributions to the Fund that are 31 sufficient, in combination with the the other revenues -2- LRB9011540EGfg 1 available to the Fund, to meet the normal cost and amortize 2 the unfunded liability of the Fund over 40 years (beginning 3 in fiscal year 2007) as a level percentage of payroll, 4 determined under the projected unit credit actuarial cost 5 method. 6 (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98; 7 revised 1-8-98.) 8 (40 ILCS 5/22-1001) (from Ch. 108 1/2, par. 22-1001) 9 Sec. 22-1001. Submission of information. By March 1 of 10 each year, the retirement systems created under Articles 2, 11 14, 15, 16, 17, and 18 of this Code shall each submit the 12 following information to the Pension Laws Commission: 13 (1) the most recent actuarial valuation computed using 14 the projected unit credit actuarial cost method for 15 retirement and ancillary benefits. 16 (2) a full disclosure of the provisions of the plan; 17 economic, mortality, termination, and demographic assumptions 18 used for the valuation; methods used to determine the 19 actuarial values; the impact of significant changes in the 20 actuarial assumptions and methods; the most recent experience 21 review; and other information affecting the plan's actuarial 22 status. 23 (3) the State's share of the amount necessary to fund 24 the normal cost plus interest on the unfunded accrued 25 liability for the next fiscal year as determined by the 26 projected unit credit computations. 27 (4) a five-year history of the system's liabilities, 28 assets (valued at cost), and unfunded liabilities. 29 (5) the July 1 market value of system assets and a 30 five-year history of annual and annualized investment returns 31 of the system's total portfolio and each segment of the 32 portfolio; and 33 (6) measures of financial status, including ten-year -3- LRB9011540EGfg 1 trends of: unfunded liabilities, funded ratios, quick 2 liability ratios, current reserves, and other solvency tests 3 requested by the Commission. 4 For plan years ending prior to December 31, 1984, the 5 historical data submitted by the retirement systems pursuant 6 to items (4) and (6) above may be based on a cost method 7 other than the projected unit credit actuarial cost method. 8 In submitting the data, the retirement systems shall specify 9 the method used. 10 (Source: P.A. 89-113, eff. 7-7-95.) 11 (40 ILCS 5/22-1003) (from Ch. 108 1/2, par. 22-1003) 12 Sec. 22-1003. The Pension Laws Commission shall receive 13 the information specified in Section 22-1001 and Section 14 22-1002 of this Act. Commission staff shall examine the 15 information and submit a report of the analysis thereof to 16 the General Assembly. The report shall also include either 17 an analysis of the effect of the different economic 18 assumptions used by the 6 the 5systems, or supplemental 19 valuations using the same economic assumptions for all 6 all20 5systems. The Commission shall compare (1) each system's 21 required actuarial funding computed using the projected unit 22 credit actuarial cost method, and (2) the required State 23 contribution levels established by Public Act 88-593. The 24 report shall also identify the amount of the required funding 25 for each system expected to come from (i) budgeted annual 26 appropriations and (ii) continuing appropriations under the 27 State Pension Funds Continuing Appropriation Act. 28 The Commission shall also compute multiple year 29 projections showing the effect on system liabilities and the 30 State's annual cost (1) if the systems were to be funded 31 according to actuarial recommendations that the Commission 32 deems reasonable, (2) if each system were to be funded 33 according to recommendations made by the system's actuary, -4- LRB9011540EGfg 1 and (3) if the systems were to be funded according to the 2 required State contribution levels established by Public Act 3 88-593; including (i) comparisons of State costs with 4 projected benefit payments, payroll, and the general funds 5 budget, and (ii) comparisons of unfunded liabilities, funded 6 ratios, solvency tests, and projected reserves. The 7 Commission may conduct additional analyses and projections as 8 it deems useful. 9 (Source: P.A. 89-113, eff. 7-7-95.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law.
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