102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4100

 

Introduced 6/15/2021, by Rep. Kelly M. Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/9-169  from Ch. 108 1/2, par. 9-169
40 ILCS 5/10-107  from Ch. 108 1/2, par. 10-107
30 ILCS 805/8.45 new

    Amends the Cook County and Cook County Forest Preserve Articles of the Illinois Pension Code. Specifies the amount of the county's and the forest preserve district's required annual contributions through payment year 2025. Provides that for payment years 2026 through 2063, the county's and forest preserve district's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the county's or forest preserve district's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined on a level percentage of applicable employee payroll basis that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2063. Specifies a formula for payment years after 2063. Provides that, in lieu of levying all or a portion of the required tax in any year, the county or forest preserve district may deposit with the county treasurer for the benefit of the fund an amount that, together with the taxes levied for that year, is not less than the amount of the county's or forest preserve district's contributions for that year as certified by the board of the Fund to the county board or forest preserve district. Provides that the county or forest preserve district may continue to use other lawfully available funds to make the contribution in lieu of all or part of the levy. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State.


LRB102 18820 RPS 27526 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4100LRB102 18820 RPS 27526 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
5changing Sections 9-169 and 10-107 as follows:
 
6    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
7    Sec. 9-169. Financing - Tax levy.
8    (a) The county board shall levy a tax annually upon all
9taxable property in the county at the rate that will produce a
10sum which, when added to the amounts deducted from the
11salaries of the employees or otherwise contributed by them is
12sufficient for the requirements of this Article.
13    For the years before 1962 the tax rate shall be as provided
14in "The 1925 Act". For the years 1962 and 1963 the tax rate
15shall be not more than .0200 per cent; for the years 1964 and
161965 the tax rate shall be not more than .0202 per cent; for
17the years 1966 and 1967 the tax rate shall be not more than
18.0207 per cent; for the year 1968 the tax rate shall be not
19more than .0220 per cent; for the year 1969 the tax rate shall
20be not more than .0233 per cent; for the year 1970 the tax rate
21shall be not more than .0255 per cent; for the year 1971 the
22tax rate shall be not more than .0268 per cent of the value, as
23equalized or assessed by the Department of Revenue upon all

 

 

HB4100- 2 -LRB102 18820 RPS 27526 b

1taxable property in the county. Beginning with the year 1972
2and for each year thereafter the county shall levy a tax
3annually at a rate on the dollar of the value, as equalized or
4assessed by the Department of Revenue of all taxable property
5within the county that will produce, when extended, not to
6exceed an amount equal to the total amount of contributions
7made by the employees to the fund in the calendar year 2 years
8prior to the year for which the annual applicable tax is levied
9multiplied by .8 for the years 1972 through 1976; by .8 for the
10year 1977; by .87 for the year 1978; by .94 for the year 1979;
11by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
121.18 for the year 1982 and by 1.36 for the year 1983 and by
131.54 for the year 1984 and for each year thereafter through
14levy year 2021. Beginning in levy year 2022, and in each year
15thereafter, the County shall levy a tax annually at a rate on
16the dollar of the value, as equalized or assessed by the
17Department of Revenue of all taxable property within the
18County that will produce, when extended, an amount equal to no
19less than the amount of the County's total required
20contribution to the Fund for the next payment year, as
21determined under subsection (a-5). For the purposes of this
22Section, the payment year is the year immediately following
23the levy year.
24    This tax shall be levied and collected in like manner with
25the general taxes of the county, and shall be in addition to
26all other taxes which the county is authorized to levy upon the

 

 

HB4100- 3 -LRB102 18820 RPS 27526 b

1aggregate valuation of all taxable property within the county
2and shall be exclusive of and in addition to the amount of tax
3the county is authorized to levy for general purposes under
4any laws which may limit the amount of tax which the county may
5levy for general purposes. The county clerk, in reducing tax
6levies under any Act concerning the levy and extension of
7taxes, shall not consider this tax as a part of the general tax
8levy for county purposes, and shall not include it within any
9limitation of the per cent of the assessed valuation upon
10which taxes are required to be extended for the county. It is
11lawful to extend this tax in addition to the general county
12rate fixed by statute, without being authorized as additional
13by a vote of the people of the county.
14    Revenues derived from this tax shall be paid to the
15treasurer of the county and held by the treasurer of the County
16him for the benefit of the fund.
17    If the payments on account of taxes are insufficient
18during any year to meet the requirements of this Article, the
19county may issue tax anticipation warrants against the current
20tax levy.
21    The County may continue to use other lawfully available
22funds in lieu of all or part of the levy, as provided under
23subsection (f).
24    (a-5)(1) Beginning in payment year 2023, the County's
25required annual contribution to the Fund for payment years
262023 through 2025 shall be: for 2023, $540,900,000; for 2024,

 

 

HB4100- 4 -LRB102 18820 RPS 27526 b

1$551,300,000; and for 2025, $545,700,000.
2    (2) For payment years 2026 through 2063, the County's
3required annual contribution to the Fund shall be the amount
4determined by the Fund to be equal to the sum of (i) the
5County's portion of the projected normal cost for that fiscal
6year, plus (ii) an amount determined on a level percentage of
7applicable employee payroll basis (reflecting any limits on
8individual participants' pay that apply for benefit and
9contribution purposes under this plan) that is sufficient to
10bring the total actuarial assets of the Fund up to 90% of the
11total actuarial liabilities of the Fund by the end of 2063.
12    (3) For payment years after 2063, the County's required
13annual contribution to the Fund shall be equal to the amount,
14if any, needed to bring the total actuarial assets of the Fund
15up to 90% of the total actuarial liabilities of the Fund by the
16end of the year.
17    (4) In making the determinations under paragraphs (2) and
18(3), the actuarial calculations shall be determined under the
19entry age normal actuarial cost method, and any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following the fiscal year.
23    (5) To the extent that the County's contribution for any
24of the payment years referenced in this subsection is made
25with property taxes, those property taxes shall be levied,
26collected, and paid to the Fund in a like manner with the

 

 

HB4100- 5 -LRB102 18820 RPS 27526 b

1general taxes of the County.
2    (b) By January 10, annually, the board shall notify the
3county board of the requirement of this Article that this tax
4shall be levied. The board shall make an annual determination
5of the required county contributions, and shall certify the
6results thereof to the county board.
7    (c) (Blank). The various sums to be contributed by the
8county board and allocated for the purposes of this Article
9and any interest to be contributed by the county shall be taken
10from the revenue derived from this tax and no money of the
11county derived from any source other than the levy and
12collection of this tax or the sale of tax anticipation
13warrants, except state or federal funds contributed for
14annuity and benefit purposes for employees of a county
15department of public aid under "The Illinois Public Aid Code",
16approved April 11, 1967, as now or hereafter amended, may be
17used to provide revenue for the fund.
18    If it is not possible or practicable for the county to make
19contributions for age and service annuity and widow's annuity
20concurrently with the employee contributions made for such
21purposes, such county shall make such contributions as soon as
22possible and practicable thereafter with interest thereon at
23the effective rate until the time it shall be made.
24    (d) With respect to employees whose wages are funded as
25participants under the Comprehensive Employment and Training
26Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.

 

 

HB4100- 6 -LRB102 18820 RPS 27526 b

193-567, 88 Stat. 1845), hereinafter referred to as CETA,
2subsequent to October 1, 1978, and in instances where the
3board has elected to establish a manpower program reserve, the
4board shall compute the amounts necessary to be credited to
5the manpower program reserves established and maintained as
6herein provided, and shall make a periodic determination of
7the amount of required contributions from the County to the
8reserve to be reimbursed by the federal government in
9accordance with rules and regulations established by the
10Secretary of the United States Department of Labor or his
11designee, and certify the results thereof to the County Board.
12Any such amounts shall become a credit to the County and will
13be used to reduce the amount which the County would otherwise
14contribute during succeeding years for all employees.
15    (e) In lieu of establishing a manpower program reserve
16with respect to employees whose wages are funded as
17participants under the Comprehensive Employment and Training
18Act of 1973, as authorized by subsection (d), the board may
19elect to establish a special County contribution rate for all
20such employees. If this option is elected, the County shall
21contribute to the Fund from federal funds provided under the
22Comprehensive Employment and Training Act program at the
23special rate so established and such contributions shall
24become a credit to the County and be used to reduce the amount
25which the County would otherwise contribute during succeeding
26years for all employees.

 

 

HB4100- 7 -LRB102 18820 RPS 27526 b

1    (f) In lieu of levying all or a portion of the tax required
2under this Section in any year, the County may deposit with the
3County treasurer for the benefit of the Fund, to be held in
4accordance with this Article, an amount that, together with
5the taxes levied under this Section for that year, is not less
6than the amount of the County's contributions for that year as
7certified by the board to the County Board. The deposit may be
8derived from any source legally available for that purpose,
9including, but not limited to, the proceeds of County
10borrowings. The making of a deposit shall satisfy fully the
11requirements of this Section for that year to the extent of the
12amounts so deposited; however, such action does not relieve
13the County from fulfilling its obligations of the required
14annual contribution to the Fund pursuant to subsection (a-5).
15Amounts deposited under this subsection may be used by the
16Fund for any of the purposes for which the proceeds of the tax
17levied by the County under this Section may be used, including
18the payment of any amount that is otherwise required by this
19Article to be paid from the proceeds of that tax.
20(Source: P.A. 95-369, eff. 8-23-07.)
 
21    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
22    Sec. 10-107. Financing - Tax levy.
23    (a) The forest preserve district may levy an annual tax on
24the value, as equalized or assessed by the Department of
25Revenue, of all taxable property in the district for the

 

 

HB4100- 8 -LRB102 18820 RPS 27526 b

1purpose of providing revenue for the fund. The rate of such tax
2in any year may not exceed the rate herein specified for that
3year or the rate which will produce, when extended, the sum
4herein stated for that year, whichever is higher: for any year
5prior to 1970, .00103% or $195,000; for the year 1970, .00111%
6or $210,000; for the year 1971, .00116% or $220,000. For the
7year 1972 and each year thereafter, the Forest Preserve
8District shall levy a tax annually at a rate on the dollar of
9the value, as equalized or assessed by the Department of
10Revenue upon all taxable property in the county, when
11extended, not to exceed an amount equal to the total amount of
12contributions by the employees to the fund made in the
13calendar year 2 years prior to the year for which the annual
14applicable tax is levied, multiplied by 1.25 for the year
151972; and by 1.30 for the year 1973 and for each year
16thereafter through levy year 2021. Beginning in levy year
172022, and in each year thereafter, the Forest Preserve
18District shall levy a tax annually at a rate on the dollar of
19the value, as equalized or assessed by the Department of
20Revenue, of all taxable property within the county that will
21produce, when extended, an amount equal to no less than the
22amount of the Forest Preserve District's total required
23contribution to the Fund for the next payment year, as
24determined under subsection (b). For the purposes of this
25Section, the payment year is the year immediately following
26the levy year.

 

 

HB4100- 9 -LRB102 18820 RPS 27526 b

1    The tax shall be levied and collected in like manner with
2the general taxes of the district and shall be in addition to
3the maximum of all other tax rates which the district may levy
4upon the aggregate valuation of all taxable property and shall
5be exclusive of and in addition to the maximum amount and rate
6of taxes the district may levy for general purposes or under
7and by virtue of any laws which limit the amount of tax which
8the district may levy for general purposes. The county clerk
9of the county in which the forest preserve district is located
10in reducing tax levies under the provisions of "An Act
11concerning the levy and extension of taxes", approved May 9,
121901, as amended, shall not consider any such tax as a part of
13the general tax levy for forest preserve purposes, and shall
14not include the same in the limitation of 1% of the assessed
15valuation upon which taxes are required to be extended, and
16shall not reduce the same under the provisions of that Act. The
17proceeds of the tax herein authorized shall be kept as a
18separate fund.
19    The Board may establish a manpower program reserve, or a
20special forest preserve district contribution rate, with
21respect to employees whose wages are funded as program
22participants under the Comprehensive Employment and Training
23Act of 1973 in the manner provided in subsection (d) or (e),
24respectively, of Section 9-169. The Forest Preserve District
25may use other lawfully available funds in lieu of all or part
26of the levy.

 

 

HB4100- 10 -LRB102 18820 RPS 27526 b

1    (b)(1) Beginning in payment year 2023, the Forest Preserve
2District's required annual contribution to the Fund for
3payment years 2023 through 2025 shall be: for 2023,
4$5,700,000; for 2024, $7,600,000; and for 2025, $9,500,000.
5    (2) For payment years 2026 through 2063, the Forest
6Preserve District's required annual contribution to the Fund
7shall be the amount determined by the Fund to be equal to the
8sum of (i) the Forest Preserve District's portion of the
9projected normal cost for that fiscal year, plus (ii) an
10amount determined on a level percentage of applicable employee
11payroll basis (reflecting any limits on individual
12participants' pay that apply for benefit and contribution
13purposes under this plan) that is sufficient to bring the
14total actuarial assets of the Fund up to 90% of the total
15actuarial liabilities of the Fund by the end of 2063.
16    (3) For payment years after 2063, the Forest Preserve
17District's required annual contribution to the Fund shall be
18equal to the amount, if any, needed to bring the total
19actuarial assets of the Fund up to 90% of the total actuarial
20liabilities of the Fund by the end of the year.
21    (4) In making the determinations under paragraphs (2) and
22(3), the actuarial calculations shall be determined under the
23entry age normal actuarial cost method, and any actuarial
24gains or losses from investment return incurred in a fiscal
25year shall be recognized in equal annual amounts over the
265-year period following the fiscal year.

 

 

HB4100- 11 -LRB102 18820 RPS 27526 b

1    (5) To the extent that the Forest Preserve District's
2contribution for any of the payment years referenced in this
3subsection is made with property taxes, those property taxes
4shall be levied, collected, and paid to the Fund in a like
5manner with the general taxes of the Forest Preserve District.
6    (c) In lieu of levying all or a portion of the tax required
7under this Section in any year, the Forest Preserve District
8may deposit with the Forest Preserve District treasurer for
9the benefit of the Fund, to be held in accordance with this
10Article, an amount that, together with the taxes levied under
11this Section for that year, is not less than the amount of the
12Forest Preserve District's contributions for that year as
13certified by the board to the Forest Preserve District. The
14deposit may be derived from any source legally available for
15that purpose, including, but not limited to, the proceeds of
16Forest Preserve District borrowings. The making of a deposit
17shall satisfy fully the requirements of this Section for that
18year to the extent of the amounts so deposited; however, such
19action does not relieve the Forest Preserve District from
20fulfilling its obligations of the required annual contribution
21to the Fund pursuant to subsection (b). Amounts deposited
22under this subsection may be used by the Fund for any of the
23purposes for which the proceeds of the tax levied by the Forest
24Preserve District under this Section may be used, including
25the payment of any amount that is otherwise required by this
26Article to be paid from the proceeds of that tax.

 

 

HB4100- 12 -LRB102 18820 RPS 27526 b

1(Source: P.A. 81-1509.)
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.45 as follows:
 
4    (30 ILCS 805/8.45 new)
5    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
68 of this Act, no reimbursement by the State is required for
7the implementation of any mandate created by this amendatory
8Act of the 102nd General Assembly.