Bill Text: IL SB0449 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the General Assembly Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-04-21 - Re-referred to Assignments [SB0449 Detail]
Download: Illinois-2015-SB0449-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Section 2-124 as follows:
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6 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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7 | Sec. 2-124. Contributions by State.
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8 | (a) The
The State shall make contributions to the System by
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9 | appropriations of amounts which, together with the | ||||||||||||||||||||||||
10 | contributions of
participants, interest earned on investments, | ||||||||||||||||||||||||
11 | and other income
will meet the cost of maintaining and | ||||||||||||||||||||||||
12 | administering the System on a 100%
funded basis in accordance | ||||||||||||||||||||||||
13 | with actuarial recommendations by the end of State fiscal year | ||||||||||||||||||||||||
14 | 2044. | ||||||||||||||||||||||||
15 | (b) The Board shall determine the amount of State
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16 | contributions required for each fiscal year on the basis of the
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17 | actuarial tables and other assumptions adopted by the Board and | ||||||||||||||||||||||||
18 | the
prescribed rate of interest, using the formula in | ||||||||||||||||||||||||
19 | subsection (c).
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20 | (c) For State fiscal years 2015 through 2044, the minimum | ||||||||||||||||||||||||
21 | contribution
to the System to be made by the State for each | ||||||||||||||||||||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||||||||||||||||||||
23 | equal to the sum of (1) the State's portion of the projected |
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1 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
2 | to bring the total assets of the
System up to 100% of the total | ||||||
3 | actuarial liabilities of the System by the end of
State fiscal | ||||||
4 | year 2044. In making these determinations, the required State
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5 | contribution shall be calculated each year as a level | ||||||
6 | percentage of payroll
over the years remaining to and including | ||||||
7 | fiscal year 2044 and shall be
determined under the projected | ||||||
8 | unit cost method for fiscal year 2015 and under the entry age | ||||||
9 | normal actuarial cost method for fiscal years 2016 through | ||||||
10 | 2044. | ||||||
11 | For State fiscal years 2012 through 2014, the minimum | ||||||
12 | contribution
to the System to be made by the State for each | ||||||
13 | fiscal year shall be an amount
determined by the System to be | ||||||
14 | sufficient to bring the total assets of the
System up to 90% of | ||||||
15 | the total actuarial liabilities of the System by the end of
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16 | State fiscal year 2045. In making these determinations, the | ||||||
17 | required State
contribution shall be calculated each year as a | ||||||
18 | level percentage of payroll
over the years remaining to and | ||||||
19 | including fiscal year 2045 and shall be
determined under the | ||||||
20 | projected unit credit actuarial cost method.
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21 | For State fiscal years 1996 through 2005, the State | ||||||
22 | contribution to
the System, as a percentage of the applicable | ||||||
23 | employee payroll, shall be
increased in equal annual increments | ||||||
24 | so that by State fiscal year 2011, the
State is contributing at | ||||||
25 | the rate required under this Section.
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26 | Notwithstanding any other provision of this Article, the |
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1 | total required State
contribution for State fiscal year 2006 is | ||||||
2 | $4,157,000.
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3 | Notwithstanding any other provision of this Article, the | ||||||
4 | total required State
contribution for State fiscal year 2007 is | ||||||
5 | $5,220,300.
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6 | For each of State fiscal years 2008 through 2009, the State | ||||||
7 | contribution to
the System, as a percentage of the applicable | ||||||
8 | employee payroll, shall be
increased in equal annual increments | ||||||
9 | from the required State contribution for State fiscal year | ||||||
10 | 2007, so that by State fiscal year 2011, the
State is | ||||||
11 | contributing at the rate otherwise required under this Section.
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12 | Notwithstanding any other provision of this Article, the | ||||||
13 | total required State contribution for State fiscal year 2010 is | ||||||
14 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
15 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
16 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
17 | expenses determined by the System's share of total bond | ||||||
18 | proceeds, (ii) any amounts received from the General Revenue | ||||||
19 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
20 | proceeds due to the issuance of discounted bonds, if | ||||||
21 | applicable. | ||||||
22 | Notwithstanding any other provision of this Article, the
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23 | total required State contribution for State fiscal year 2011 is
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24 | the amount recertified by the System on or before April 1, 2011 | ||||||
25 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
26 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
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1 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
2 | bond sale
expenses determined by the System's share of total | ||||||
3 | bond
proceeds, (ii) any amounts received from the General | ||||||
4 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
5 | bond
proceeds due to the issuance of discounted bonds, if
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6 | applicable. | ||||||
7 | Beginning in State fiscal year 2045, the minimum State | ||||||
8 | contribution for each fiscal year shall be the amount needed to | ||||||
9 | maintain the total assets of the System at 100% of the total | ||||||
10 | actuarial liabilities of the System.
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11 | Amounts received by the System pursuant to Section 25 of | ||||||
12 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
13 | Finance Act in any fiscal year do not reduce and do not | ||||||
14 | constitute payment of any portion of the minimum State | ||||||
15 | contribution required under this Article in that fiscal year. | ||||||
16 | Such amounts shall not reduce, and shall not be included in the | ||||||
17 | calculation of, the required State contributions under this | ||||||
18 | Article in any future year until the System has reached a | ||||||
19 | funding ratio of at least 100%. A reference in this Article to | ||||||
20 | the "required State contribution" or any substantially similar | ||||||
21 | term does not include or apply to any amounts payable to the | ||||||
22 | System under Section 25 of the Budget Stabilization Act.
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23 | Notwithstanding any other provision of this Section, the | ||||||
24 | required State
contribution for State fiscal year 2005 and for | ||||||
25 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
26 | fiscal year 2014, as
calculated under this Section and
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1 | certified under Section 2-134, shall not exceed an amount equal | ||||||
2 | to (i) the
amount of the required State contribution that would | ||||||
3 | have been calculated under
this Section for that fiscal year if | ||||||
4 | the System had not received any payments
under subsection (d) | ||||||
5 | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | ||||||
6 | the portion of the State's total debt service payments for that | ||||||
7 | fiscal
year on the bonds issued in fiscal year 2003 for the | ||||||
8 | purposes of that Section 7.2, as determined
and certified by | ||||||
9 | the Comptroller, that is the same as the System's portion of
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10 | the total moneys distributed under subsection (d) of Section | ||||||
11 | 7.2 of the General
Obligation Bond Act. In determining this | ||||||
12 | maximum for State fiscal years 2008 through 2010, however, the | ||||||
13 | amount referred to in item (i) shall be increased, as a | ||||||
14 | percentage of the applicable employee payroll, in equal | ||||||
15 | increments calculated from the sum of the required State | ||||||
16 | contribution for State fiscal year 2007 plus the applicable | ||||||
17 | portion of the State's total debt service payments for fiscal | ||||||
18 | year 2007 on the bonds issued in fiscal year 2003 for the | ||||||
19 | purposes of Section 7.2 of the General
Obligation Bond Act, so | ||||||
20 | that, by State fiscal year 2011, the
State is contributing at | ||||||
21 | the rate otherwise required under this Section.
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22 | (d) For purposes of determining the required State | ||||||
23 | contribution to the System, the value of the System's assets | ||||||
24 | shall be equal to the actuarial value of the System's assets, | ||||||
25 | which shall be calculated as follows: | ||||||
26 | As of June 30, 2008, the actuarial value of the System's |
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1 | assets shall be equal to the market value of the assets as of | ||||||
2 | that date. In determining the actuarial value of the System's | ||||||
3 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
4 | gains or losses from investment return incurred in a fiscal | ||||||
5 | year shall be recognized in equal annual amounts over the | ||||||
6 | 5-year period following that fiscal year. | ||||||
7 | (e) For purposes of determining the required State | ||||||
8 | contribution to the system for a particular year, the actuarial | ||||||
9 | value of assets shall be assumed to earn a rate of return equal | ||||||
10 | to the system's actuarially assumed rate of return. | ||||||
11 | (Source: P.A. 97-813, eff. 7-13-12; 98-599, eff. 6-1-14 .)
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