103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2435

 

Introduced 2/10/2023, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/9-169  from Ch. 108 1/2, par. 9-169
30 ILCS 805/8.47 new

    Amends the Cook County Article of the Illinois Pension Code. Provides that beginning in levy year 2024, the County shall levy a tax annually at a rate on the dollar of the value, as equalized or assessed by the Department of Revenue of all taxable property within the County that will produce, when extended, an amount equal to no less than the amount of the County's total required contribution to the Fund for the next payment year. Provides that for payment years 2025 through 2055, the County's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the projected normal cost for pensions for that fiscal year, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, minus (v) projected employee contributions for that fiscal year. Specifies a formula for payment years after 2055. Provides that, in lieu of levying all or a portion of the tax required, the County 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 contributions for that year as certified by the Board of Trustees of the Fund to the County board. Provides that the County 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.


LRB103 06031 RPS 51061 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

SB2435LRB103 06031 RPS 51061 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 Section 9-169 as follows:
 
6    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
7    Sec. 9-169. Financing; tax 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

 

 

SB2435- 2 -LRB103 06031 RPS 51061 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 2023. Beginning in levy year 2024, 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

 

 

SB2435- 3 -LRB103 06031 RPS 51061 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 2025 through 2055, the
25county's required annual contribution to the Fund shall be the
26minimum required employer contribution set forth in paragraph

 

 

SB2435- 4 -LRB103 06031 RPS 51061 b

1(3) of this subsection (a-5).
2    (2) The Board shall retain an actuary who is a member in
3good standing of the American Academy of Actuaries to produce
4an annual actuarial report of the Fund. The annual actuarial
5report shall include, but not be limited to: (i) a statement of
6the actuarial value of the Fund's assets as projected over 30
7years' time and the actuarial value of the Fund's liabilities
8as projected over the same period of time; and (ii) the minimum
9required employer contribution for the second year immediately
10following the year ending on the valuation date upon which the
11annual actuarial report is based. The annual actuarial report
12shall be reviewed and formally adopted by the Board and may be
13included in other annual reports.
14    (3) The minimum required employer contribution for a
15specified year as set forth in the annual actuarial report
16required under paragraph (2) shall be the amount determined by
17the Fund's actuary to be equal to the sum of: (i) the projected
18normal cost for pensions for that fiscal year, plus (ii) a
19projected unfunded actuarial accrued liability amortization
20payment for pensions for the fiscal year, plus (iii) projected
21expenses for that fiscal year, plus (iv) interest to adjust
22for payment pattern during the fiscal year, minus (v)
23projected employee contributions for that fiscal year. The
24county's required annual contribution to the Fund shall not be
25less than the sum of (i) the projected normal cost for pensions
26for that fiscal year, plus (ii) a projected unfunded actuarial

 

 

SB2435- 5 -LRB103 06031 RPS 51061 b

1accrued liability amortization payment for pensions for the
2fiscal year, plus (iii) projected expenses for that fiscal
3year, plus (iv) interest to adjust for payment pattern during
4the fiscal year, minus (v) projected employee contributions
5for that fiscal year. The minimum required employer
6contribution shall be based on the entry age normal cost
7method, a 5-year smoothed actuarial value of assets, and a
830-year layered amortization of unfunded actuarial accrued
9liability with payments increasing at 2% per year.
10    The minimum required employer contribution shall be
11submitted annually to the county on or before July 31 unless
12another time frame is agreed upon by the county and the Fund.
13    (4) For payment years after 2055, the county's required
14annual contribution to the Fund shall be equal to the amount,
15if any, needed to bring the total actuarial assets of the Fund
16up to 100% of the total actuarial liabilities of the Fund by
17the end of the year.
18    (5) To the extent that the county's contribution for any
19of the payment years referenced in this subsection is made
20with property taxes, those property taxes shall be levied,
21collected, and paid to the Fund in a like manner with the
22general taxes of the county.
23    (b) By January 10, annually, the board shall notify the
24county board of the requirement of this Article that this tax
25shall be levied. The board shall make an annual determination
26of the required county contributions, and shall certify the

 

 

SB2435- 6 -LRB103 06031 RPS 51061 b

1results thereof to the county board.
2    (c) (Blank). The various sums to be contributed by the
3county board and allocated for the purposes of this Article
4and any interest to be contributed by the county shall be taken
5from the revenue derived from this tax and no money of the
6county derived from any source other than the levy and
7collection of this tax or the sale of tax anticipation
8warrants, except state or federal funds contributed for
9annuity and benefit purposes for employees of a county
10department of public aid under "The Illinois Public Aid Code",
11approved April 11, 1967, as now or hereafter amended, may be
12used to provide revenue for the fund.
13    If it is not possible or practicable for the county to make
14contributions for age and service annuity and widow's annuity
15concurrently with the employee contributions made for such
16purposes, such county shall make such contributions as soon as
17possible and practicable thereafter with interest thereon at
18the effective rate until the time it shall be made.
19    (d) With respect to employees whose wages are funded as
20participants under the Comprehensive Employment and Training
21Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2293-567, 88 Stat. 1845), hereinafter referred to as CETA,
23subsequent to October 1, 1978, and in instances where the
24board has elected to establish a manpower program reserve, the
25board shall compute the amounts necessary to be credited to
26the manpower program reserves established and maintained as

 

 

SB2435- 7 -LRB103 06031 RPS 51061 b

1herein provided, and shall make a periodic determination of
2the amount of required contributions from the County to the
3reserve to be reimbursed by the federal government in
4accordance with rules and regulations established by the
5Secretary of the United States Department of Labor or his
6designee, and certify the results thereof to the County Board.
7Any such amounts shall become a credit to the County and will
8be used to reduce the amount which the County would otherwise
9contribute during succeeding years for all employees.
10    (e) In lieu of establishing a manpower program reserve
11with respect to employees whose wages are funded as
12participants under the Comprehensive Employment and Training
13Act of 1973, as authorized by subsection (d), the board may
14elect to establish a special County contribution rate for all
15such employees. If this option is elected, the County shall
16contribute to the Fund from federal funds provided under the
17Comprehensive Employment and Training Act program at the
18special rate so established and such contributions shall
19become a credit to the County and be used to reduce the amount
20which the County would otherwise contribute during succeeding
21years for all employees.
22    (f) In lieu of levying all or a portion of the tax required
23under this Section in any year, the county may deposit with the
24county treasurer for the benefit of the Fund, to be held in
25accordance with this Article, an amount that, together with
26the taxes levied under this Section for that year, is not less

 

 

SB2435- 8 -LRB103 06031 RPS 51061 b

1than the amount of the County's contributions for that year as
2certified by the Board to the county Board. The deposit may be
3derived from any source legally available for that purpose,
4including, but not limited to, the proceeds of county
5borrowings. The making of a deposit shall satisfy fully the
6requirements of this Section for that year to the extent of the
7amounts so deposited; however, such action does not relieve
8the county from fulfilling its obligations of the required
9annual contribution to the Fund pursuant to subsection (a-5).
10Amounts deposited under this subsection may be used by the
11Fund for any of the purposes for which the proceeds of the tax
12levied by the county under this Section may be used, including
13the payment of any amount that is otherwise required by this
14Article to be paid from the proceeds of that tax.
15(Source: P.A. 95-369, eff. 8-23-07.)
 
16    Section 90. The State Mandates Act is amended by adding
17Section 8.47 as follows:
 
18    (30 ILCS 805/8.47 new)
19    Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
208 of this Act, no reimbursement by the State is required for
21the implementation of any mandate created by this amendatory
22Act of the 103rd General Assembly.