101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2061

 

Introduced 2/15/2019, by Sen. Iris Y. Martinez

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/5-168  from Ch. 108 1/2, par. 5-168

    Amends the Chicago Police Article of the Illinois Pension Code. Provides that any proceeds received by the city in relation to the operation of gaming positions or sports betting within the city shall be expended by the city for payment to the Policemen's Annuity and Benefit Fund of Chicago to satisfy the city contribution obligation in any year.


LRB101 10650 RPS 55757 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2061LRB101 10650 RPS 55757 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 5-168 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
9shall levy a tax annually upon all taxable property therein for
10the purpose of providing revenue for the fund.
11    The tax shall be at a rate that will produce a sum which,
12when added to the amounts deducted from the policemen's
13salaries and the amounts deposited in accordance with
14subsection (g), is sufficient for the purposes of the fund.
15    For the years 1968 and 1969, the city council shall levy a
16tax annually at a rate on the dollar of the assessed valuation
17of all taxable property that will produce, when extended, not
18to exceed $9,700,000. Beginning with the year 1970 and through
192014, the city council shall levy a tax annually at a rate on
20the dollar of the assessed valuation of all taxable property
21that will produce when extended an amount not to exceed the
22total amount of contributions by the policemen to the Fund made
23in the calendar year 2 years before the year for which the

 

 

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1applicable annual tax is levied, multiplied by 1.40 for the tax
2levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
31.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
4by 2.00 for 1982 and for each tax levy year through 2014.
5Beginning in tax levy year 2015, the city council shall levy a
6tax annually at a rate on the dollar of the assessed valuation
7of all taxable property that will produce when extended an
8annual amount that is equal to no less than the amount of the
9city's contribution in each of the following payment years: for
102016, $420,000,000; for 2017, $464,000,000; for 2018,
11$500,000,000; for 2019, $557,000,000; for 2020, $579,000,000.
12    Beginning in tax levy year 2020, the city council shall
13levy a tax annually at a rate on the dollar of the assessed
14valuation of all taxable property that will produce when
15extended an annual amount that is equal to no less than (1) the
16normal cost to the Fund, plus (2) an annual amount sufficient
17to bring the total assets of the Fund up to 90% of the total
18actuarial liabilities of the Fund by the end of fiscal year
192055, as annually updated and determined by an enrolled actuary
20employed by the Illinois Department of Insurance or by an
21enrolled actuary retained by the Fund. In making these
22determinations, the required minimum employer contribution
23shall be calculated each year as a level percentage of payroll
24over the years remaining up to and including fiscal year 2055
25and shall be determined under the entry age normal actuarial
26cost method. Beginning in payment year 2056, the city's total

 

 

SB2061- 3 -LRB101 10650 RPS 55757 b

1required contribution in that year and each year thereafter
2shall be an annual amount that is equal to no less than (1) the
3normal cost of the Fund, plus (2) the annual amount determined
4by an enrolled actuary employed by the Illinois Department of
5Insurance or by an enrolled actuary retained by the Fund to be
6equal to the amount, if any, needed to bring the total
7actuarial assets of the Fund up to 90% of the total actuarial
8liabilities of the Fund as of the end of the year, utilizing
9the entry age normal cost method as provided above.
10    For the purposes of this subsection (a), contributions by
11the policeman to the Fund shall not include payments made by a
12policeman to establish credit under Section 5-214.2 of this
13Code.
14    (a-5) For purposes of determining the required employer
15contribution to the Fund, the value of the Fund's assets shall
16be equal to the actuarial value of the Fund's assets, which
17shall be calculated as follows:
18        (1) On March 30, 2011, the actuarial value of the
19    Fund's assets shall be equal to the market value of the
20    assets as of that date.
21        (2) In determining the actuarial value of the Fund's
22    assets for fiscal years after March 30, 2011, any actuarial
23    gains or losses from investment return incurred in a fiscal
24    year shall be recognized in equal annual amounts over the
25    5-year period following that fiscal year.
26    (a-7) If the city fails to transmit to the Fund

 

 

SB2061- 4 -LRB101 10650 RPS 55757 b

1contributions required of it under this Article for more than
290 days after the payment of those contributions is due, the
3Fund shall, after giving notice to the city, certify to the
4State Comptroller the amounts of the delinquent payments, and
5the Comptroller must, beginning in fiscal year 2016, deduct and
6deposit into the Fund the certified amounts or a portion of
7those amounts from the following proportions of grants of State
8funds to the city:
9        (1) in fiscal year 2016, one-third of the total amount
10    of any grants of State funds to the city;
11        (2) in fiscal year 2017, two-thirds of the total amount
12    of any grants of State funds to the city; and
13        (3) in fiscal year 2018 and each fiscal year
14    thereafter, the total amount of any grants of State funds
15    to the city.
16    The State Comptroller may not deduct from any grants of
17State funds to the city more than the amount of delinquent
18payments certified to the State Comptroller by the Fund.
19    (b) The tax shall be levied and collected in like manner
20with the general taxes of the city, and is in addition to all
21other taxes which the city is now or may hereafter be
22authorized to levy upon all taxable property therein, and is
23exclusive of and in addition to the amount of tax the city is
24now or may hereafter be authorized to levy for general purposes
25under any law which may limit the amount of tax which the city
26may levy for general purposes. The county clerk of the county

 

 

SB2061- 5 -LRB101 10650 RPS 55757 b

1in which the city is located, in reducing tax levies under
2Section 8-3-1 of the Illinois Municipal Code, shall not
3consider the tax herein authorized as a part of the general tax
4levy for city purposes, and shall not include the tax in any
5limitation of the percent of the assessed valuation upon which
6taxes are required to be extended for the city.
7    (c) On or before January 10 of each year, the board shall
8notify the city council of the requirement that the tax herein
9authorized be levied by the city council for that current year.
10The board shall compute the amounts necessary for the purposes
11of this fund to be credited to the reserves established and
12maintained within the fund; shall make an annual determination
13of the amount of the required city contributions; and shall
14certify the results thereof to the city council.
15    As soon as any revenue derived from the tax is collected it
16shall be paid to the city treasurer of the city and shall be
17held by him for the benefit of the fund in accordance with this
18Article.
19    (d) If the funds available are insufficient during any year
20to meet the requirements of this Article, the city may issue
21tax anticipation warrants against the tax levy for the current
22fiscal year.
23    (e) The various sums, including interest, to be contributed
24by the city, shall be taken from the revenue derived from such
25tax or otherwise as expressly provided in this Section. Any
26moneys of the city derived from any source other than the tax

 

 

SB2061- 6 -LRB101 10650 RPS 55757 b

1herein authorized shall not be used for any purpose of the fund
2nor the cost of administration thereof, unless applied to make
3the deposit expressly authorized in this Section or the
4additional city contributions required under subsection (h).
5    (f) If it is not possible or practicable for the city to
6make its contributions at the time that salary deductions are
7made, the city shall make such contributions as soon as
8possible thereafter, with interest thereon to the time it is
9made.
10    (g) In lieu of levying all or a portion of the tax required
11under this Section in any year, the city may deposit with the
12city treasurer no later than March 1 of that year for the
13benefit of the fund, to be held in accordance with this
14Article, an amount that, together with the taxes levied under
15this Section for that year, is not less than the amount of the
16city contributions for that year as certified by the board to
17the city council. The deposit may be derived from any source
18legally available for that purpose, including, but not limited
19to, the proceeds of city borrowings. The making of a deposit
20shall satisfy fully the requirements of this Section for that
21year to the extent of the amounts so deposited. Amounts
22deposited under this subsection may be used by the fund for any
23of the purposes for which the proceeds of the tax levied under
24this Section may be used, including the payment of any amount
25that is otherwise required by this Article to be paid from the
26proceeds of that tax.

 

 

SB2061- 7 -LRB101 10650 RPS 55757 b

1    (h) In addition to the contributions required under the
2other provisions of this Article, by November 1 of the
3following specified years, the city shall deposit with the city
4treasurer for the benefit of the fund, to be held and used in
5accordance with this Article, the following specified amounts:
6$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
7$5,040,000 in 2002; and $4,620,000 in 2003.
8    The additional city contributions required under this
9subsection are intended to decrease the unfunded liability of
10the fund and shall not decrease the amount of the city
11contributions required under the other provisions of this
12Article. The additional city contributions made under this
13subsection may be used by the fund for any of its lawful
14purposes.
15    (i) Any proceeds received by the city in relation to the
16operation of a casino or casinos, gaming positions, or sports
17betting within the city shall be expended by the city for
18payment to the Policemen's Annuity and Benefit Fund of Chicago
19to satisfy the city contribution obligation in any year.
20(Source: P.A. 99-506, eff. 5-30-16.)