Bill Text: IL SB0449 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the Illinois Municipal Retirement Fund Article of the Illinois Pension Code. Makes a technical change in a Section concerning credits and creditable service.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB0449 Detail]

Download: Illinois-2013-SB0449-Amended.html

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Sen. Kwame Raoul

Filed: 3/6/2014

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

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years for which revenues from the levy will be received, as
such amount is determined and certified by the Board of the
Fund, plus any amount of required Board of Education
contributions for previous years that remain unpaid.
The tax required under this Section shall be levied and
collected in like manner with the other taxes of the Board of
Education and shall be distributed as provided in subsection
(b).
The tax required under this Section shall be in addition to
all other taxes that the Board of Education is now or may
hereafter be authorized to levy, and shall be exclusive of and
in addition to the amount of tax authorized to be levied under
any law that may limit the amount of tax that the Board of
Education may levy for this or any other purpose. The tax may
be levied by the Board of Education without being authorized by
a vote of the people.
The tax required under this Section shall not be considered
or reduced in the course of determining any limitation of any
other tax rate that may be extended.
(b) The proceeds of the tax required under this Section
shall, upon collection, be paid by the tax collector directly
and immediately to the Fund for deposit as directed by the
Board of the Fund and shall be credited as contributions paid
to the Fund by the Board of Education.
(c) If the Board of Education fails to levy the tax as
required under this Section, or the amount collected from that

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

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

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to be sufficient to bring the total assets of the Fund up to
90% of the total actuarial liabilities of the Fund by the end
of fiscal year 2059. In making these determinations, the
required Board of Education contribution shall be calculated
each year as a level percentage of the applicable employee
payrolls over the years remaining to and including fiscal year
2059 and shall be determined under the projected unit credit
actuarial cost method.
(v) Beginning in fiscal year 2060, the minimum Board of
Education contribution for each fiscal year shall be the amount
needed to maintain the total assets of the Fund at 90% of the
total actuarial liabilities of the Fund.
(vi) Notwithstanding any other provision of this
subsection (b), for any fiscal year, the contribution to the
Fund from the Board of Education shall not be required to be in
excess of the amount calculated as needed to maintain the
assets (or cause the assets to be) at the 90% level by the end
of the fiscal year.
(vii) Any contribution by the State to or for the benefit
of the Fund, including, without limitation, as referred to
under Section 17-127, shall be a credit against any
contribution required to be made by the Board of Education
under this subsection (b) if the Board certifies that the total
assets of the Fund are at least 90% of the total actuarial
liabilities of the Fund as of June 30 of the previous fiscal
year.

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

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