Bill Text: IL SB0538 | 2011-2012 | 97th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the State Employees Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB0538 Detail]
Download: Illinois-2011-SB0538-Introduced.html
Bill Title: Amends the State Employees Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB0538 Detail]
Download: Illinois-2011-SB0538-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 14-131 as follows:
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6 | (40 ILCS 5/14-131)
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7 | Sec. 14-131. Contributions by State.
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8 | (a) The
The State shall make contributions to the System by | ||||||||||||||||||||||||
9 | appropriations of
amounts which, together with other employer | ||||||||||||||||||||||||
10 | contributions from trust, federal,
and other funds, employee | ||||||||||||||||||||||||
11 | contributions, investment income, and other income,
will be | ||||||||||||||||||||||||
12 | sufficient to meet the cost of maintaining and administering | ||||||||||||||||||||||||
13 | the System
on a 90% funded basis in accordance with actuarial | ||||||||||||||||||||||||
14 | recommendations. | ||||||||||||||||||||||||
15 | For the purposes of this Section and Section 14-135.08, | ||||||||||||||||||||||||
16 | references to State
contributions refer only to employer | ||||||||||||||||||||||||
17 | contributions and do not include employee
contributions that | ||||||||||||||||||||||||
18 | are picked up or otherwise paid by the State or a
department on | ||||||||||||||||||||||||
19 | behalf of the employee.
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20 | (b) The Board shall determine the total amount of State | ||||||||||||||||||||||||
21 | contributions
required for each fiscal year on the basis of the | ||||||||||||||||||||||||
22 | actuarial tables and other
assumptions adopted by the Board, | ||||||||||||||||||||||||
23 | using the formula in subsection (e).
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1 | The Board shall also determine a State contribution rate | ||||||
2 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
3 | based on the total required State
contribution for that fiscal | ||||||
4 | year (less the amount received by the System from
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5 | appropriations under Section 8.12 of the State Finance Act and | ||||||
6 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
7 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
8 | immediately preceding the applicable November 15
certification | ||||||
9 | deadline), the estimated payroll (including all forms of
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10 | compensation) for personal services rendered by eligible | ||||||
11 | employees, and the
recommendations of the actuary.
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12 | For the purposes of this Section and Section 14.1 of the | ||||||
13 | State Finance Act,
the term "eligible employees" includes | ||||||
14 | employees who participate in the System,
persons who may elect | ||||||
15 | to participate in the System but have not so elected,
persons | ||||||
16 | who are serving a qualifying period that is required for | ||||||
17 | participation,
and annuitants employed by a department as | ||||||
18 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
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19 | (c) Contributions shall be made by the several departments | ||||||
20 | for each pay
period by warrants drawn by the State Comptroller | ||||||
21 | against their respective
funds or appropriations based upon | ||||||
22 | vouchers stating the amount to be so
contributed. These amounts | ||||||
23 | shall be based on the full rate certified by the
Board under | ||||||
24 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
25 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
26 | payment of the final payroll from fiscal year 2004
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1 | appropriations, the several departments shall not make | ||||||
2 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
3 | instead make payments
as required under subsection (a-1) of | ||||||
4 | Section 14.1 of the State Finance Act.
The several departments | ||||||
5 | shall resume those contributions at the commencement of
fiscal | ||||||
6 | year 2005.
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7 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
8 | fiscal year 2010 only, contributions by the several departments | ||||||
9 | are not required to be made for General Revenue Funds payrolls | ||||||
10 | processed by the Comptroller. Payrolls paid by the several | ||||||
11 | departments from all other State funds must continue to be | ||||||
12 | processed pursuant to subsection (c) of this Section. | ||||||
13 | (c-2) For State fiscal year 2010 only, on or as soon as | ||||||
14 | possible after the 15th day of each month the Board shall | ||||||
15 | submit vouchers for payment of State contributions to the | ||||||
16 | System, in a total monthly amount of one-twelfth of the fiscal | ||||||
17 | year 2010 General Revenue Fund appropriation to the System. | ||||||
18 | (d) If an employee is paid from trust funds or federal | ||||||
19 | funds, the
department or other employer shall pay employer | ||||||
20 | contributions from those funds
to the System at the certified | ||||||
21 | rate, unless the terms of the trust or the
federal-State | ||||||
22 | agreement preclude the use of the funds for that purpose, in
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23 | which case the required employer contributions shall be paid by | ||||||
24 | the State.
From the effective date of this amendatory
Act of | ||||||
25 | the 93rd General Assembly through the payment of the final
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26 | payroll from fiscal year 2004 appropriations, the department or |
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1 | other
employer shall not pay contributions for the remainder of | ||||||
2 | fiscal year
2004 but shall instead make payments as required | ||||||
3 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
4 | Act. The department or other employer shall
resume payment of
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5 | contributions at the commencement of fiscal year 2005.
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6 | (e) For State fiscal years 2011 through 2045, the minimum | ||||||
7 | contribution
to the System to be made by the State for each | ||||||
8 | fiscal year shall be an amount
determined by the System to be | ||||||
9 | sufficient to bring the total assets of the
System up to 90% of | ||||||
10 | the total actuarial liabilities of the System by the end
of | ||||||
11 | State fiscal year 2045. In making these determinations, the | ||||||
12 | required State
contribution shall be calculated each year as a | ||||||
13 | level percentage of payroll
over the years remaining to and | ||||||
14 | including fiscal year 2045 and shall be
determined under the | ||||||
15 | projected unit credit actuarial cost method.
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16 | For State fiscal years 1996 through 2005, the State | ||||||
17 | contribution to
the System, as a percentage of the applicable | ||||||
18 | employee payroll, shall be
increased in equal annual increments | ||||||
19 | so that by State fiscal year 2011, the
State is contributing at | ||||||
20 | the rate required under this Section; except that
(i) for State | ||||||
21 | fiscal year 1998, for all purposes of this Code and any other
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22 | law of this State, the certified percentage of the applicable | ||||||
23 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
24 | creditable service under Section
14-110 and 6.500% for all | ||||||
25 | other employees, notwithstanding any contrary
certification | ||||||
26 | made under Section 14-135.08 before the effective date of this
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1 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
2 | State fiscal years, the State contribution to
the System shall | ||||||
3 | not be less than the following indicated percentages of the
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4 | applicable employee payroll, even if the indicated percentage | ||||||
5 | will produce a
State contribution in excess of the amount | ||||||
6 | otherwise required under this
subsection and subsection (a):
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7 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
8 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
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9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State
contribution to the System for State | ||||||
11 | fiscal year 2006 is $203,783,900.
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12 | Notwithstanding any other provision of this Article, the | ||||||
13 | total required State
contribution to the System for State | ||||||
14 | fiscal year 2007 is $344,164,400.
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15 | For each of State fiscal years 2008 through 2009, the State | ||||||
16 | contribution to
the System, as a percentage of the applicable | ||||||
17 | employee payroll, shall be
increased in equal annual increments | ||||||
18 | from the required State contribution for State fiscal year | ||||||
19 | 2007, so that by State fiscal year 2011, the
State is | ||||||
20 | contributing at the rate otherwise required under this Section.
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21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State General Revenue Fund contribution for | ||||||
23 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
24 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
25 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
26 | pro rata share of bond sale expenses determined by the System's |
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1 | share of total bond proceeds, (ii) any amounts received from | ||||||
2 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
3 | reduction in bond proceeds due to the issuance of discounted | ||||||
4 | bonds, if applicable. | ||||||
5 | Beginning in State fiscal year 2046, the minimum State | ||||||
6 | contribution for
each fiscal year shall be the amount needed to | ||||||
7 | maintain the total assets of
the System at 90% of the total | ||||||
8 | actuarial liabilities of the System.
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9 | Amounts received by the System pursuant to Section 25 of | ||||||
10 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
11 | Finance Act in any fiscal year do not reduce and do not | ||||||
12 | constitute payment of any portion of the minimum State | ||||||
13 | contribution required under this Article in that fiscal year. | ||||||
14 | Such amounts shall not reduce, and shall not be included in the | ||||||
15 | calculation of, the required State contributions under this | ||||||
16 | Article in any future year until the System has reached a | ||||||
17 | funding ratio of at least 90%. A reference in this Article to | ||||||
18 | the "required State contribution" or any substantially similar | ||||||
19 | term does not include or apply to any amounts payable to the | ||||||
20 | System under Section 25 of the Budget Stabilization Act.
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21 | Notwithstanding any other provision of this Section, the | ||||||
22 | required State
contribution for State fiscal year 2005 and for | ||||||
23 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
24 | under this Section and
certified under Section 14-135.08, shall | ||||||
25 | not exceed an amount equal to (i) the
amount of the required | ||||||
26 | State contribution that would have been calculated under
this |
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1 | Section for that fiscal year if the System had not received any | ||||||
2 | payments
under subsection (d) of Section 7.2 of the General | ||||||
3 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
4 | total debt service payments for that fiscal
year on the bonds | ||||||
5 | issued for the purposes of that Section 7.2, as determined
and | ||||||
6 | certified by the Comptroller, that is the same as the System's | ||||||
7 | portion of
the total moneys distributed under subsection (d) of | ||||||
8 | Section 7.2 of the General
Obligation Bond Act. In determining | ||||||
9 | this maximum for State fiscal years 2008 through 2010, however, | ||||||
10 | the amount referred to in item (i) shall be increased, as a | ||||||
11 | percentage of the applicable employee payroll, in equal | ||||||
12 | increments calculated from the sum of the required State | ||||||
13 | contribution for State fiscal year 2007 plus the applicable | ||||||
14 | portion of the State's total debt service payments for fiscal | ||||||
15 | year 2007 on the bonds issued for the purposes of Section 7.2 | ||||||
16 | of the General
Obligation Bond Act, so that, by State fiscal | ||||||
17 | year 2011, the
State is contributing at the rate otherwise | ||||||
18 | required under this Section.
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19 | (f) After the submission of all payments for eligible | ||||||
20 | employees
from personal services line items in fiscal year 2004 | ||||||
21 | have been made,
the Comptroller shall provide to the System a | ||||||
22 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
23 | for personal services that would
have been covered by payments | ||||||
24 | to the System under this Section if the
provisions of this | ||||||
25 | amendatory Act of the 93rd General Assembly had not been
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26 | enacted. Upon
receipt of the certification, the System shall |
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1 | determine the amount
due to the System based on the full rate | ||||||
2 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
3 | 2004 in order to meet the State's
obligation under this | ||||||
4 | Section. The System shall compare this amount
due to the amount | ||||||
5 | received by the System in fiscal year 2004 through
payments | ||||||
6 | under this Section and under Section 6z-61 of the State Finance | ||||||
7 | Act.
If the amount
due is more than the amount received, the | ||||||
8 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
9 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
10 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
11 | Continuing Appropriation Act. If the amount due is less than | ||||||
12 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
13 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
14 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
15 | the Pension Contribution Fund as soon as practicable
after the | ||||||
16 | certification.
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17 | (g) For purposes of determining the required State | ||||||
18 | contribution to the System, the value of the System's assets | ||||||
19 | shall be equal to the actuarial value of the System's assets, | ||||||
20 | which shall be calculated as follows: | ||||||
21 | As of June 30, 2008, the actuarial value of the System's | ||||||
22 | assets shall be equal to the market value of the assets as of | ||||||
23 | that date. In determining the actuarial value of the System's | ||||||
24 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
25 | gains or losses from investment return incurred in a fiscal | ||||||
26 | year shall be recognized in equal annual amounts over the |
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1 | 5-year period following that fiscal year. | ||||||
2 | (h) For purposes of determining the required State | ||||||
3 | contribution to the System for a particular year, the actuarial | ||||||
4 | value of assets shall be assumed to earn a rate of return equal | ||||||
5 | to the System's actuarially assumed rate of return. | ||||||
6 | (i) After the submission of all payments for eligible | ||||||
7 | employees from personal services line items paid from the | ||||||
8 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
9 | Comptroller shall provide to the System a certification of the | ||||||
10 | sum of all fiscal year 2010 expenditures for personal services | ||||||
11 | that would have been covered by payments to the System under | ||||||
12 | this Section if the provisions of this amendatory Act of the | ||||||
13 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
14 | certification, the System shall determine the amount due to the | ||||||
15 | System based on the full rate certified by the Board under | ||||||
16 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
17 | State's obligation under this Section. The System shall compare | ||||||
18 | this amount due to the amount received by the System in fiscal | ||||||
19 | year 2010 through payments under this Section. If the amount | ||||||
20 | due is more than the amount received, the difference shall be | ||||||
21 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
22 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
23 | under Section 1.2 of the State Pension Funds Continuing | ||||||
24 | Appropriation Act. If the amount due is less than the amount | ||||||
25 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
26 | Overpayment" for purposes of this Section, and the Fiscal Year |
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1 | 2010 Overpayment shall be repaid by the System to the General | ||||||
2 | Revenue Fund as soon as practicable after the certification. | ||||||
3 | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45, | ||||||
4 | eff. 7-15-09; 96-1000, eff. 7-2-10.)
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