Sen. Kwame Raoul

Filed: 3/6/2014

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 449

2    AMENDMENT NO. ______. Amend Senate Bill 449 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 17-129 and by adding Section 17-128.1 as
6follows:
 
7    (40 ILCS 5/17-128.1 new)
8    Sec. 17-128.1. Tax for employer contributions to the Fund.
9    (a) For the purpose of providing monies for required
10employer contributions to the Fund, beginning in 2015 and in
11each year thereafter, the Board of Education shall levy a tax
12on the equalized assessed value of all taxable property in the
13City, at a rate which, when extended, will produce an amount
14reasonably calculated at the time of the levy to provide for
15payment in full of the Board of Education's contributions
16required under Section 17-129 for the portions of the fiscal

 

 

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1years for which revenues from the levy will be received, as
2such amount is determined and certified by the Board of the
3Fund, plus any amount of required Board of Education
4contributions for previous years that remain unpaid.
5    The tax required under this Section shall be levied and
6collected in like manner with the other taxes of the Board of
7Education and shall be distributed as provided in subsection
8(b).
9    The tax required under this Section shall be in addition to
10all other taxes that the Board of Education is now or may
11hereafter be authorized to levy, and shall be exclusive of and
12in addition to the amount of tax authorized to be levied under
13any law that may limit the amount of tax that the Board of
14Education may levy for this or any other purpose. The tax may
15be levied by the Board of Education without being authorized by
16a vote of the people.
17    The tax required under this Section shall not be considered
18or reduced in the course of determining any limitation of any
19other tax rate that may be extended.
20    (b) The proceeds of the tax required under this Section
21shall, upon collection, be paid by the tax collector directly
22and immediately to the Fund for deposit as directed by the
23Board of the Fund and shall be credited as contributions paid
24to the Fund by the Board of Education.
25    (c) If the Board of Education fails to levy the tax as
26required under this Section, or the amount collected from that

 

 

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1tax is otherwise insufficient to pay the full amount of the
2required contribution certified by the Board of the Fund, then
3the Board of the Fund, after giving notice to the Board of
4Education, shall certify the amount of the insufficiency to the
5tax collector and direct that an amount of the proceeds
6received from the tax levied by the Board of Education for
7educational purposes under Section 34-53 of the School Code,
8equal to the certified insufficiency, shall upon collection be
9paid by the tax collector directly and immediately to the Fund
10for deposit as directed by the Board of the Fund. Any amount so
11paid shall be credited as contributions paid to the Fund by the
12Board of Education.
 
13    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
14    Sec. 17-129. Employer contributions; deficiency in Fund.
15    (a) If in any fiscal year of the Board of Education ending
16prior to 1997 the total amounts paid to the Fund from the Board
17of Education (other than under this subsection, and other than
18amounts used for making or "picking up" contributions on behalf
19of teachers) and from the State do not equal the total
20contributions made by or on behalf of the teachers for such
21year, or if the total income of the Fund in any such fiscal
22year of the Board of Education from all sources is less than
23the total such expenditures by the Fund for such year, the
24Board of Education shall, in the next succeeding year, in
25addition to any other payment to the Fund set apart and

 

 

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1appropriate from moneys from its tax levy for educational
2purposes, a sum sufficient to remove such deficiency or
3deficiencies, and promptly pay such sum into the Fund in order
4to restore any of the reserves of the Fund that may have been
5so temporarily applied. Any amounts received by the Fund after
6December 4, 1997 and before July 1, 2010 from State
7appropriations, including under Section 17-127, shall be a
8credit against and shall fully satisfy any obligation that may
9have arisen, or be claimed to have arisen, under this
10subsection (a) as a result of any deficiency or deficiencies in
11the fiscal year of the Board of Education ending in calendar
12year 1997.
13    (b) (i) Notwithstanding any other provision of this
14Section, and notwithstanding any prior certification by the
15Board under subsection (c) for fiscal year 2011, the Board of
16Education's total required contribution to the Fund for fiscal
17year 2011 under this Section is $187,000,000.
18    (ii) Notwithstanding any other provision of this Section,
19the Board of Education's total required contribution to the
20Fund for fiscal year 2012 under this Section is $192,000,000.
21    (iii) Notwithstanding any other provision of this Section,
22the Board of Education's total required contribution to the
23Fund for fiscal year 2013 under this Section is $196,000,000.
24    (iv) For fiscal years 2014 through 2059, the minimum
25contribution to the Fund to be made by the Board of Education
26in each fiscal year shall be an amount determined by the Fund

 

 

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1to be sufficient to bring the total assets of the Fund up to
290% of the total actuarial liabilities of the Fund by the end
3of fiscal year 2059. In making these determinations, the
4required Board of Education contribution shall be calculated
5each year as a level percentage of the applicable employee
6payrolls over the years remaining to and including fiscal year
72059 and shall be determined under the projected unit credit
8actuarial cost method.
9    (v) Beginning in fiscal year 2060, the minimum Board of
10Education contribution for each fiscal year shall be the amount
11needed to maintain the total assets of the Fund at 90% of the
12total actuarial liabilities of the Fund.
13    (vi) Notwithstanding any other provision of this
14subsection (b), for any fiscal year, the contribution to the
15Fund from the Board of Education shall not be required to be in
16excess of the amount calculated as needed to maintain the
17assets (or cause the assets to be) at the 90% level by the end
18of the fiscal year.
19    (vii) Any contribution by the State to or for the benefit
20of the Fund, including, without limitation, as referred to
21under Section 17-127, shall be a credit against any
22contribution required to be made by the Board of Education
23under this subsection (b) if the Board certifies that the total
24assets of the Fund are at least 90% of the total actuarial
25liabilities of the Fund as of June 30 of the previous fiscal
26year.

 

 

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1    (c) The Board of the Fund shall determine the amount of
2Board of Education contributions required for each fiscal year
3on the basis of the actuarial tables and other assumptions
4adopted by the Board and the recommendations of the actuary, in
5order to meet the minimum contribution requirements of
6subsections (a) and (b). Annually, on or before February 28,
7the Board of the Fund shall certify to the Board of Education
8the amount of the required Board of Education contribution for
9the coming fiscal year. The certification shall include a copy
10of the actuarial recommendations upon which it is based.
11    (d) The Board of Education's required contribution to the
12Fund for fiscal year 2015 shall be paid in 12 equal monthly
13payments.
14    The Board of Education's required contribution to the Fund
15for fiscal year 2016 shall be paid in 12 equal monthly
16payments, proportionately reduced by the amount of any proceeds
17of the tax required to be levied under Section 17-128.1 that
18are reasonably anticipated to be received by the Fund in that
19fiscal year.
20    Beginning with fiscal year 2017 and continuing for each
21fiscal year thereafter, the Board of Education's required
22contribution to the Fund shall be paid from the proceeds of the
23tax required to be levied under Section 17-128.1 that are
24received by the Fund in that fiscal year.
25    If the sum provided by the tax required under subsection
26(a) of Section 17-128.1 is insufficient to pay in full the

 

 

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1required contribution, the Board of Education remains liable
2for the payment of that insufficiency. If the insufficiency is
3not recovered by the Fund under subsection (c) of Section
417-128.1 or otherwise paid by the Board of Education, the
5amount remaining unpaid shall be added to the required
6contribution certified by the Board of the Fund for the next
7fiscal year.
8(Source: P.A. 96-889, eff. 4-14-10.)
 
9    Section 90. The State Mandates Act is amended by adding
10Section 8.38 as follows:
 
11    (30 ILCS 805/8.38 new)
12    Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
13of this Act, no reimbursement by the State is required for the
14implementation of any mandate created by this amendatory Act of
15the 98th General Assembly.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".