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91_SB0133 LRB9100806EGfg 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, 1999, and 2000
the25 future. 26 (c) Beginning in State fiscal year 2001, the State 27 contribution, as a percentage of the applicable employee 28 payroll, shall be increased in equal annual increments over a 29 7-year phase-in period until the following funding level is 30 achieved. Beginning in State fiscal year 2008, the State of 31 Illinois shall make annual contributions to the Fund that are -2- LRB9100806EGfg 1 sufficient, in combination with the the other revenues 2 available to the Fund, to meet the normal cost and amortize 3 the unfunded liability of the Fund over 40 years (beginning 4 in fiscal year 2008) as a level percentage of payroll, 5 determined under the projected unit credit actuarial cost 6 method. 7 (d) Beginning in State fiscal year 1999, the State shall 8 include in its annual contribution to the Fund an additional 9 amount equal to 0.544% of the Fund's total teacher payroll; 10 except that this additional contribution need not be made in 11 a fiscal year if the Board has certified in the previous 12 fiscal year that the Fund is at least 90% funded, based on 13 actuarial determinations. These additional State 14 contributions are intended to offset a portion of the cost to 15 the Fund of the increases in retirement benefits resulting 16 from Public this amendatoryAct 90-582 of 1998. 17 (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98; 18 90-582, eff. 5-27-98; 90-655, eff. 7-30-98.) 19 (40 ILCS 5/22-1001) (from Ch. 108 1/2, par. 22-1001) 20 Sec. 22-1001. Submission of information. By March 1 of 21 each year, the retirement systems created under Articles 2, 22 14, 15, 16, 17, and 18 of this Code shall each submit the 23 following information to the Pension Laws Commission: 24 (1) The most recent actuarial valuation computed 25 using the projected unit credit actuarial cost method for 26 retirement and ancillary benefits. 27 (2) A full disclosure of the provisions of the 28 plan; economic, mortality, termination, and demographic 29 assumptions used for the valuation; methods used to 30 determine the actuarial values; the impact of significant 31 changes in the actuarial assumptions and methods; the 32 most recent experience review; and other information 33 affecting the plan's actuarial status. -3- LRB9100806EGfg 1 (3) The State's share of the amount necessary to 2 fund the normal cost plus interest on the unfunded 3 accrued liability for the next fiscal year as determined 4 by the projected unit credit computations. 5 (4) A five-year history of the system's 6 liabilities, assets (valued at cost), and unfunded 7 liabilities. 8 (5) The July 1 market value of system assets and a 9 five-year history of annual and annualized investment 10 returns of the system's total portfolio and each segment 11 of the portfolio. ; and12 (6) Measures of financial status, including 13 ten-year trends of: unfunded liabilities, funded ratios, 14 quick liability ratios, current reserves, and other 15 solvency tests requested by the Commission. 16 For plan years ending prior to December 31, 1984, the 17 historical data submitted by the retirement systems pursuant 18 to items (4) and (6) above may be based on a cost method 19 other than the projected unit credit actuarial cost method. 20 In submitting the data, the retirement systems shall specify 21 the method used. 22 (Source: P.A. 89-113, eff. 7-7-95.) 23 (40 ILCS 5/22-1003) (from Ch. 108 1/2, par. 22-1003) 24 Sec. 22-1003. The Pension Laws Commission shall receive 25 the information specified in Section 22-1001 and Section 26 22-1002 of this Act. Commission staff shall examine the 27 information and submit a report of the analysis thereof to 28 the General Assembly. The report shall also include either 29 an analysis of the effect of the different economic 30 assumptions used by the 6 the 5systems, or supplemental 31 valuations using the same economic assumptions for all 6 all32 5systems. The Commission shall compare (1) each system's 33 required actuarial funding computed using the projected unit -4- LRB9100806EGfg 1 credit actuarial cost method, and (2) the required State 2 contribution levels established by Public Act 88-593. The 3 report shall also identify the amount of the required funding 4 for each system expected to come from (i) budgeted annual 5 appropriations and (ii) continuing appropriations under the 6 State Pension Funds Continuing Appropriation Act. 7 The Commission shall also compute multiple year 8 projections showing the effect on system liabilities and the 9 State's annual cost (1) if the systems were to be funded 10 according to actuarial recommendations that the Commission 11 deems reasonable, (2) if each system were to be funded 12 according to recommendations made by the system's actuary, 13 and (3) if the systems were to be funded according to the 14 required State contribution levels established by Public Act 15 88-593; including (i) comparisons of State costs with 16 projected benefit payments, payroll, and the general funds 17 budget, and (ii) comparisons of unfunded liabilities, funded 18 ratios, solvency tests, and projected reserves. The 19 Commission may conduct additional analyses and projections as 20 it deems useful. 21 (Source: P.A. 89-113, eff. 7-7-95.) 22 Section 99. Effective date. This Act takes effect upon 23 becoming law.
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