97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6157

 

Introduced , by Rep. Darlene J. Senger

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/8-174.2 new
40 ILCS 5/8-191  from Ch. 108 1/2, par. 8-191
40 ILCS 5/11-179.1 new
40 ILCS 5/11-180  from Ch. 108 1/2, par. 11-180
40 ILCS 5/12-155.2 new
40 ILCS 5/17-129  from Ch. 108 1/2, par. 17-129
30 ILCS 805/8.36 new

    Amends the Chicago Municipal, Chicago Laborers, Chicago Park District, and Chicago Teachers Articles of the Illinois Pension Code. In every affected Article, except the Chicago Teachers Article, establishes a minimum contribution that must be paid to the affected Funds by employers during each fiscal year beginning in fiscal year 2013. In the Chicago Teachers Article, changes the required minimum contribution so that the Fund is 90% funded by 2046 (rather than 2060). In the Chicago Municipal and Chicago Laborers Articles, requires the amounts that must be paid for annuities, benefits, and administrative expenses to be paid by the city (rather than by the city from the prescribed tax levy). Amends the State Mandates Act to require implementation without reimbursement. Effective July 1, 2012.


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

 

 

A BILL FOR

 

HB6157LRB097 21139 JDS 68583 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
5Sections 8-191, 11-180, and 17-129 and by adding Sections
68-174.2, 11-179.1, and 12-155.2 as follows:
 
7    (40 ILCS 5/8-174.2 new)
8    Sec. 8-174.2. Minimum required employer contributions.
9Notwithstanding subsection (a) of Section 8-174.1, the minimum
10required employer contribution to the Fund for each fiscal year
11shall be:
12        (1) for fiscal years 2013 through 2045, the amount
13    determined by the Fund to be sufficient to bring the total
14    assets of the Fund up to 90% of the total actuarial
15    liabilities of the Fund by the end of fiscal year 2045,
16    calculated as a level percentage of payroll over the years
17    remaining to and including fiscal year 2045 using the
18    projected unit credit actuarial cost method; and
19        (2) for fiscal year 2046 and thereafter, the amount
20    needed to maintain the total assets of the Fund at 90% of
21    the actuarial liabilities of the Fund.
 
22

 

 

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1    (40 ILCS 5/8-191)  (from Ch. 108 1/2, par. 8-191)
2    Sec. 8-191. Estimates of sums required for certain
3annuities and benefits.
4    The board shall estimate the amounts required each year to
5pay for all annuities and benefits and administrative expenses.
6The amounts shall be paid into the fund annually by the city
7from the prescribed tax levy.
8(Source: Laws 1963, p. 161.)
 
9    (40 ILCS 5/11-179.1 new)
10    Sec. 11-179.1. Minimum required contributions by city. The
11minimum required contribution by the city to the Fund for each
12fiscal year shall be:
13        (1) for fiscal years 2013 through 2045, the amount
14    determined by the Fund to be sufficient to bring the total
15    assets of the Fund up to 90% of the total actuarial
16    liabilities of the Fund by the end of fiscal year 2045,
17    calculated as a level percentage of payroll over the years
18    remaining to and including fiscal year 2045 using the
19    projected unit credit actuarial cost method; and
20        (2) for fiscal year 2046 and thereafter, the amount
21    needed to maintain the total assets of the Fund at 90% of
22    the actuarial liabilities of the Fund.
 
23    (40 ILCS 5/11-180)  (from Ch. 108 1/2, par. 11-180)
24    Sec. 11-180. Estimates of sums required for certain

 

 

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1annuities and benefits.
2    The board shall estimate the amounts required each year to
3pay for all annuities and benefits and administrative expenses.
4The amounts shall be paid into the fund annually by the city
5from the prescribed tax levy.
6(Source: Laws 1963, p. 161.)
 
7    (40 ILCS 5/12-155.2 new)
8    Sec. 12-155.2. Minimum required contributions by employer.
9The minimum required contribution by the employer to the Fund
10for each fiscal year shall be:
11        (1) for fiscal years 2013 through 2045, the amount
12    determined by the Fund to be sufficient to bring the total
13    assets of the Fund up to 90% of the total actuarial
14    liabilities of the Fund by the end of fiscal year 2045,
15    calculated as a level percentage of payroll over the years
16    remaining to and including fiscal year 2045 using the
17    projected unit credit actuarial cost method; and
18        (2) for fiscal year 2046 and thereafter, the amount
19    needed to maintain the total assets of the Fund at 90% of
20    the actuarial liabilities of the Fund.
 
21    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
22    Sec. 17-129. Employer contributions; deficiency in Fund.
23    (a) If in any fiscal year of the Board of Education ending
24prior to 1997 the total amounts paid to the Fund from the Board

 

 

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1of Education (other than under this subsection, and other than
2amounts used for making or "picking up" contributions on behalf
3of teachers) and from the State do not equal the total
4contributions made by or on behalf of the teachers for such
5year, or if the total income of the Fund in any such fiscal
6year of the Board of Education from all sources is less than
7the total such expenditures by the Fund for such year, the
8Board of Education shall, in the next succeeding year, in
9addition to any other payment to the Fund set apart and
10appropriate from moneys from its tax levy for educational
11purposes, a sum sufficient to remove such deficiency or
12deficiencies, and promptly pay such sum into the Fund in order
13to restore any of the reserves of the Fund that may have been
14so temporarily applied. Any amounts received by the Fund after
15December 4, 1997 from State appropriations, including under
16Section 17-127, shall be a credit against and shall fully
17satisfy any obligation that may have arisen, or be claimed to
18have arisen, under this subsection (a) as a result of any
19deficiency or deficiencies in the fiscal year of the Board of
20Education ending in calendar year 1997.
21    (b) (i) Notwithstanding any other provision of this
22Section, and notwithstanding any prior certification by the
23Board under subsection (c) for fiscal year 2011, the Board of
24Education's total required contribution to the Fund for fiscal
25year 2011 under this Section is $187,000,000.
26    (ii) Notwithstanding any other provision of this Section,

 

 

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1the Board of Education's total required contribution to the
2Fund for fiscal year 2012 under this Section is $192,000,000.
3    (iii) (Blank). Notwithstanding any other provision of this
4Section, the Board of Education's total required contribution
5to the Fund for fiscal year 2013 under this Section is
6$196,000,000.
7    (iv) Notwithstanding any other provision of this Section or
8Section 17-130.1, for For fiscal years 2013 2014 through 2045
92059, the minimum contribution to the Fund to be made by the
10Board of Education in each fiscal year shall be an amount
11determined by the Fund to be sufficient to bring the total
12assets of the Fund up to 90% of the total actuarial liabilities
13of the Fund by the end of fiscal year 2045 2059. In making
14these determinations, the required Board of Education
15contribution shall be calculated each year as a level
16percentage of the applicable employee payrolls over the years
17remaining to and including fiscal year 2045 2059 and shall be
18determined under the projected unit credit actuarial cost
19method.
20    (v) Beginning in fiscal year 2046 2060, the minimum Board
21of Education contribution for each fiscal year shall be the
22amount needed to maintain the total assets of the Fund at 90%
23of the total actuarial liabilities of the Fund.
24    (vi) Notwithstanding any other provision of this
25subsection (b), for any fiscal year, the contribution to the
26Fund from the Board of Education shall not be required to be in

 

 

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1excess of the amount calculated as needed to maintain the
2assets (or cause the assets to be) at the 90% level by the end
3of the fiscal year.
4    (vii) Any contribution by the State to or for the benefit
5of the Fund, including, without limitation, as referred to
6under Section 17-127, shall be a credit against any
7contribution required to be made by the Board of Education
8under this subsection (b).
9    (c) The Board shall determine the amount of Board of
10Education contributions required for each fiscal year on the
11basis of the actuarial tables and other assumptions adopted by
12the Board and the recommendations of the actuary, in order to
13meet the minimum contribution requirements of subsections (a)
14and (b). Annually, on or before February 28, the Board shall
15certify to the Board of Education the amount of the required
16Board of Education contribution for the coming fiscal year. The
17certification shall include a copy of the actuarial
18recommendations upon which it is based.
19(Source: P.A. 96-889, eff. 4-14-10.)
 
20    Section 90. The State Mandates Act is amended by adding
21Section 8.36 as follows:
 
22    (30 ILCS 805/8.36 new)
23    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
24of this Act, no reimbursement by the State is required for the

 

 

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1implementation of any mandate created by this amendatory Act of
2the 97th General Assembly.
 
3    Section 99. Effective date. This Act takes effect July 1,
42012.