Bill Text: IL SB2061 | 2019-2020 | 101st General Assembly | Introduced

---

Bill Title: Amends the Chicago Police Article of the Illinois Pension Code. Provides that any proceeds received by the city in relation to the operation of gaming positions or sports betting within the city shall be expended by the city for payment to the Policemen's Annuity and Benefit Fund of Chicago to satisfy the city contribution obligation in any year.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB2061 Detail]

Download: Illinois-2019-SB2061-Introduced.html

---

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB2061 Introduced 2/15/2019, by Sen. Iris Y. Martinez SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168
Amends the Chicago Police Article of the Illinois Pension Code. Provides that any proceeds received by the city in relation to the operation of gaming positions or sports betting within the city shall be expended by the city for payment to the Policemen's Annuity and Benefit Fund of Chicago to satisfy the city contribution obligation in any year.
LRB101 10650 RPS 55757 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
SB2061 LRB101 10650 RPS 55757 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 5-168 as follows:
(40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
Sec. 5-168. Financing.
(a) Except as expressly provided in this Section, the city
shall levy a tax annually upon all taxable property therein for
the purpose of providing revenue for the fund.
The tax shall be at a rate that will produce a sum which,
when added to the amounts deducted from the policemen's
salaries and the amounts deposited in accordance with
subsection (g), is sufficient for the purposes of the fund.
For the years 1968 and 1969, the city council shall levy a
tax annually at a rate on the dollar of the assessed valuation
of all taxable property that will produce, when extended, not
to exceed $9,700,000. Beginning with the year 1970 and through
2014, the city council shall levy a tax annually at a rate on
the dollar of the assessed valuation of all taxable property
that will produce when extended an amount not to exceed the
total amount of contributions by the policemen to the Fund made
in the calendar year 2 years before the year for which the

SB2061 - 2 - LRB101 10650 RPS 55757 b
applicable annual tax is levied, multiplied by 1.40 for the tax
levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
by 2.00 for 1982 and for each tax levy year through 2014.
Beginning in tax levy year 2015, the city council shall levy a
tax annually at a rate on the dollar of the assessed valuation
of all taxable property that will produce when extended an
annual amount that is equal to no less than the amount of the
city's contribution in each of the following payment years: for
2016, $420,000,000; for 2017, $464,000,000; for 2018,
$500,000,000; for 2019, $557,000,000; for 2020, $579,000,000.
Beginning in tax levy year 2020, the city council shall
levy a tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce when
extended an annual amount that is equal to no less than (1) the
normal cost to the Fund, plus (2) an annual amount 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
2055, as annually updated and determined by an enrolled actuary
employed by the Illinois Department of Insurance or by an
enrolled actuary retained by the Fund. In making these
determinations, the required minimum employer contribution
shall be calculated each year as a level percentage of payroll
over the years remaining up to and including fiscal year 2055
and shall be determined under the entry age normal actuarial
cost method. Beginning in payment year 2056, the city's total

SB2061 - 3 - LRB101 10650 RPS 55757 b
required contribution in that year and each year thereafter
shall be an annual amount that is equal to no less than (1) the
normal cost of the Fund, plus (2) the annual amount determined
by an enrolled actuary employed by the Illinois Department of
Insurance or by an enrolled actuary retained by the Fund to be
equal to the amount, if any, needed to bring the total
actuarial assets of the Fund up to 90% of the total actuarial
liabilities of the Fund as of the end of the year, utilizing
the entry age normal cost method as provided above.
For the purposes of this subsection (a), contributions by
the policeman to the Fund shall not include payments made by a
policeman to establish credit under Section 5-214.2 of this
Code.
(a-5) For purposes of determining the required employer
contribution to the Fund, the value of the Fund's assets shall
be equal to the actuarial value of the Fund's assets, which
shall be calculated as follows:
(1) On March 30, 2011, the actuarial value of the
Fund's assets shall be equal to the market value of the
assets as of that date.
(2) In determining the actuarial value of the Fund's
assets for fiscal years after March 30, 2011, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(a-7) If the city fails to transmit to the Fund

SB2061 - 4 - LRB101 10650 RPS 55757 b
contributions required of it under this Article for more than
90 days after the payment of those contributions is due, the
Fund shall, after giving notice to the city, certify to the
State Comptroller the amounts of the delinquent payments, and
the Comptroller must, beginning in fiscal year 2016, deduct and
deposit into the Fund the certified amounts or a portion of
those amounts from the following proportions of grants of State
funds to the city:
(1) in fiscal year 2016, one-third of the total amount
of any grants of State funds to the city;
(2) in fiscal year 2017, two-thirds of the total amount
of any grants of State funds to the city; and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any grants of State funds
to the city.
The State Comptroller may not deduct from any grants of
State funds to the city more than the amount of delinquent
payments certified to the State Comptroller by the Fund.
(b) The tax shall be levied and collected in like manner
with the general taxes of the city, and is in addition to all
other taxes which the city is now or may hereafter be
authorized to levy upon all taxable property therein, and is
exclusive of and in addition to the amount of tax the city is
now or may hereafter be authorized to levy for general purposes
under any law which may limit the amount of tax which the city
may levy for general purposes. The county clerk of the county

SB2061 - 5 - LRB101 10650 RPS 55757 b
in which the city is located, in reducing tax levies under
Section 8-3-1 of the Illinois Municipal Code, shall not
consider the tax herein authorized as a part of the general tax
levy for city purposes, and shall not include the tax in any
limitation of the percent of the assessed valuation upon which
taxes are required to be extended for the city.
(c) On or before January 10 of each year, the board shall
notify the city council of the requirement that the tax herein
authorized be levied by the city council for that current year.
The board shall compute the amounts necessary for the purposes
of this fund to be credited to the reserves established and
maintained within the fund; shall make an annual determination
of the amount of the required city contributions; and shall
certify the results thereof to the city council.
As soon as any revenue derived from the tax is collected it
shall be paid to the city treasurer of the city and shall be
held by him for the benefit of the fund in accordance with this
Article.
(d) If the funds available are insufficient during any year
to meet the requirements of this Article, the city may issue
tax anticipation warrants against the tax levy for the current
fiscal year.
(e) The various sums, including interest, to be contributed
by the city, shall be taken from the revenue derived from such
tax or otherwise as expressly provided in this Section. Any
moneys of the city derived from any source other than the tax

SB2061 - 6 - LRB101 10650 RPS 55757 b
herein authorized shall not be used for any purpose of the fund
nor the cost of administration thereof, unless applied to make
the deposit expressly authorized in this Section or the
additional city contributions required under subsection (h).
(f) If it is not possible or practicable for the city to
make its contributions at the time that salary deductions are
made, the city shall make such contributions as soon as
possible thereafter, with interest thereon to the time it is
made.
(g) In lieu of levying all or a portion of the tax required
under this Section in any year, the city may deposit with the
city treasurer no later than March 1 of that year for the
benefit of the fund, to be held in accordance with this
Article, an amount that, together with the taxes levied under
this Section for that year, is not less than the amount of the
city contributions for that year as certified by the board to
the city council. The deposit may be derived from any source
legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit
shall satisfy fully the requirements of this Section for that
year to the extent of the amounts so deposited. Amounts
deposited under this subsection may be used by the fund for any
of the purposes for which the proceeds of the tax levied under
this Section may be used, including the payment of any amount
that is otherwise required by this Article to be paid from the
proceeds of that tax.

SB2061 - 7 - LRB101 10650 RPS 55757 b
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the city
treasurer for the benefit of the fund, to be held and used in
accordance with this Article, the following specified amounts:
$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
$5,040,000 in 2002; and $4,620,000 in 2003.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(i) Any proceeds received by the city in relation to the
operation of a casino or casinos, gaming positions, or sports
betting within the city shall be expended by the city for
payment to the Policemen's Annuity and Benefit Fund of Chicago
to satisfy the city contribution obligation in any year.
(Source: P.A. 99-506, eff. 5-30-16.)