Sen. John G. Mulroe

Filed: 2/26/2014

 

 


 

 


 
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AMENDMENT TO SENATE BILL 451

2    AMENDMENT NO. ______. Amend Senate Bill 451 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 5-168, 6-165, and 17-129 as follows:
 
6    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
7    Sec. 5-168. Financing.
8    (a) Except as expressly provided in this Section, the city
9shall levy a tax annually upon all taxable property therein for
10the purpose of providing revenue for the fund.
11    The tax shall be at a rate that will produce a sum which,
12when added to the amounts deducted from the policemen's
13salaries and the amounts deposited in accordance with
14subsection (g), is sufficient for the purposes of the fund.
15    For the years 1968 and 1969, the city council shall levy a
16tax annually at a rate on the dollar of the assessed valuation

 

 

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1of all taxable property that will produce, when extended, not
2to exceed $9,700,000. Beginning with the year 1970 and through
32014, the city council shall levy a tax annually at a rate on
4the dollar of the assessed valuation of all taxable property
5that will produce when extended an amount not to exceed the
6total amount of contributions by the policemen to the Fund made
7in the calendar year 2 years before the year for which the
8applicable annual tax is levied, multiplied by 1.40 for the tax
9levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
101.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
11by 2.00 for 1982 and for each year through 2014. Beginning in
122015, the city council shall levy a tax annually at a rate on
13the dollar of the assessed valuation of all taxable property
14that will produce when extended an annual amount that is equal
15to (1) the normal cost to the Fund, plus (2) an annual amount
16sufficient to bring the total assets of the Fund up to 90% of
17the total actuarial liabilities of the Fund by the end of
18fiscal year 2040, as annually updated and determined by an
19enrolled actuary employed by the Illinois Department of
20Insurance or by an enrolled actuary retained by the Fund or the
21city. In making these determinations, the required minimum
22employer contribution shall be calculated each year as a level
23percentage of payroll over the years remaining up to and
24including fiscal year 2040 and shall be determined under the
25projected unit credit actuarial cost method. For the purposes
26of this subsection (a), contributions by the policeman to the

 

 

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1Fund shall not include payments made by a policeman to
2establish credit under Section 5-214.2 of this Code.
3    (a-5) For purposes of determining the required employer
4contribution to the Fund, the value of the Fund's assets shall
5be equal to the actuarial value of the Fund's assets, which
6shall be calculated as follows:
7        (1) On March 30, 2011, the actuarial value of the
8    Fund's assets shall be equal to the market value of the
9    assets as of that date.
10        (2) In determining the actuarial value of the Fund's
11    assets for fiscal years after March 30, 2011, any actuarial
12    gains or losses from investment return incurred in a fiscal
13    year shall be recognized in equal annual amounts over the
14    5-year period following that fiscal year.
15    (a-7) If the city fails to transmit to the Fund
16contributions required of it under this Article for more than
1790 days after the payment of those contributions is due, the
18Fund may, after giving notice to the city, certify to the State
19Comptroller the amounts of the delinquent payments, and the
20Comptroller must, beginning in fiscal year 2016, deduct and
21deposit into the Fund the certified amounts or a portion of
22those amounts from the following proportions of grants of State
23funds to the city:
24        (1) in fiscal year 2016, one-third of the total amount
25    of any grants of State funds to the city;
26        (2) in fiscal year 2017, two-thirds of the total amount

 

 

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1    of any grants of State funds to the city; and
2        (3) in fiscal year 2018 and each fiscal year
3    thereafter, the total amount of any grants of State funds
4    to the city.
5    The State Comptroller may not deduct from any grants of
6State funds to the city more than the amount of delinquent
7payments certified to the State Comptroller by the Fund.
8    (b) The tax shall be levied and collected in like manner
9with the general taxes of the city, and is in addition to all
10other taxes which the city is now or may hereafter be
11authorized to levy upon all taxable property therein, and is
12exclusive of and in addition to the amount of tax the city is
13now or may hereafter be authorized to levy for general purposes
14under any law which may limit the amount of tax which the city
15may levy for general purposes. The county clerk of the county
16in which the city is located, in reducing tax levies under
17Section 8-3-1 of the Illinois Municipal Code, shall not
18consider the tax herein authorized as a part of the general tax
19levy for city purposes, and shall not include the tax in any
20limitation of the percent of the assessed valuation upon which
21taxes are required to be extended for the city.
22    (c) On or before January 10 of each year, the board shall
23notify the city council of the requirement that the tax herein
24authorized be levied by the city council for that current year.
25The board shall compute the amounts necessary for the purposes
26of this fund to be credited to the reserves established and

 

 

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1maintained within the fund; shall make an annual determination
2of the amount of the required city contributions; and shall
3certify the results thereof to the city council.
4    As soon as any revenue derived from the tax is collected it
5shall be paid to the city treasurer of the city and shall be
6held by him for the benefit of the fund in accordance with this
7Article.
8    (d) If the funds available are insufficient during any year
9to meet the requirements of this Article, the city may issue
10tax anticipation warrants against the tax levy for the current
11fiscal year.
12    (e) The various sums, including interest, to be contributed
13by the city, shall be taken from the revenue derived from such
14tax or otherwise as expressly provided in this Section. Any
15moneys of the city derived from any source other than the tax
16herein authorized shall not be used for any purpose of the fund
17nor the cost of administration thereof, unless applied to make
18the deposit expressly authorized in this Section or the
19additional city contributions required under subsection (h).
20    (f) If it is not possible or practicable for the city to
21make its contributions at the time that salary deductions are
22made, the city shall make such contributions as soon as
23possible thereafter, with interest thereon to the time it is
24made.
25    (g) In lieu of levying all or a portion of the tax required
26under this Section in any year, the city may deposit with the

 

 

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1city treasurer no later than March 1 of that year for the
2benefit of the fund, to be held in accordance with this
3Article, an amount that, together with the taxes levied under
4this Section for that year, is not less than the amount of the
5city contributions for that year as certified by the board to
6the city council. The deposit may be derived from any source
7legally available for that purpose, including, but not limited
8to, the proceeds of city borrowings. The making of a deposit
9shall satisfy fully the requirements of this Section for that
10year to the extent of the amounts so deposited. Amounts
11deposited under this subsection may be used by the fund for any
12of the purposes for which the proceeds of the tax levied under
13this Section may be used, including the payment of any amount
14that is otherwise required by this Article to be paid from the
15proceeds of that tax.
16    (h) In addition to the contributions required under the
17other provisions of this Article, by November 1 of the
18following specified years, the city shall deposit with the city
19treasurer for the benefit of the fund, to be held and used in
20accordance with this Article, the following specified amounts:
21$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
22$5,040,000 in 2002; and $4,620,000 in 2003.
23    The additional city contributions required under this
24subsection are intended to decrease the unfunded liability of
25the fund and shall not decrease the amount of the city
26contributions required under the other provisions of this

 

 

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1Article. The additional city contributions made under this
2subsection may be used by the fund for any of its lawful
3purposes.
4    (i) In addition to the contributions required under the
5other provisions of this Article, the city shall deposit with
6the city treasurer for the benefit of the fund, to be held and
7used in accordance with this Article, 20% of any savings
8resulting from reductions in the number of police officers
9compared to the number of police officers on January 1, 2014.
10(Source: P.A. 95-1036, eff. 2-17-09; 96-1495, eff. 1-1-11.)
 
11    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
12    Sec. 6-165. Financing; tax.
13    (a) Except as expressly provided in this Section, each city
14shall levy a tax annually upon all taxable property therein for
15the purpose of providing revenue for the fund. For the years
16prior to the year 1960, the tax rate shall be as provided for
17in the "Firemen's Annuity and Benefit Fund of the Illinois
18Municipal Code". The tax, from and after January 1, 1968 to and
19including the year 1971, shall not exceed .0863% of the value,
20as equalized or assessed by the Department of Revenue, of all
21taxable property in the city. Beginning with the year 1972 and
22through 2014, the city shall levy a tax annually at a rate on
23the dollar of the value, as equalized or assessed by the
24Department of Revenue of all taxable property within such city
25that will produce, when extended, not to exceed an amount equal

 

 

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1to the total amount of contributions by the employees to the
2fund made in the calendar year 2 years prior to the year for
3which the annual applicable tax is levied, multiplied by 2.23
4through the calendar year 1981, and by 2.26 for the year 1982
5and for each year through 2014. Beginning in 2015, the city
6council shall levy a tax annually at a rate on the dollar of
7the assessed valuation of all taxable property that will
8produce when extended an annual amount that is equal to (1) the
9normal cost to the Fund, plus (2) an annual amount sufficient
10to bring the total assets of the Fund up to 90% of the total
11actuarial liabilities of the Fund by the end of fiscal year
122040, as annually updated and determined by an enrolled actuary
13employed by the Illinois Department of Insurance or by an
14enrolled actuary retained by the Fund or the city. In making
15these determinations, the required minimum employer
16contribution shall be calculated each year as a level
17percentage of payroll over the years remaining up to and
18including fiscal year 2040 and shall be determined under the
19projected unit credit actuarial cost method.
20    To provide revenue for the ordinary death benefit
21established by Section 6-150 of this Article, in addition to
22the contributions by the firemen for this purpose, the city
23council shall for the year 1962 and each year thereafter
24annually levy a tax, which shall be in addition to and
25exclusive of the taxes authorized to be levied under the
26foregoing provisions of this Section, upon all taxable property

 

 

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1in the city, as equalized or assessed by the Department of
2Revenue, at such rate per cent of the value of such property as
3shall be sufficient to produce for each year the sum of
4$142,000.
5    The amounts produced by the taxes levied annually, together
6with the deposit expressly authorized in this Section, shall be
7sufficient, when added to the amounts deducted from the
8salaries of firemen and applied to the fund, to provide for the
9purposes of the fund.
10    (a-5) For purposes of determining the required employer
11contribution to the Fund, the value of the Fund's assets shall
12be equal to the actuarial value of the Fund's assets, which
13shall be calculated as follows:
14        (1) On March 30, 2011, the actuarial value of the
15    Fund's assets shall be equal to the market value of the
16    assets as of that date.
17        (2) In determining the actuarial value of the Fund's
18    assets for fiscal years after March 30, 2011, any actuarial
19    gains or losses from investment return incurred in a fiscal
20    year shall be recognized in equal annual amounts over the
21    5-year period following that fiscal year.
22    (a-7) If the city fails to transmit to the Fund
23contributions required of it under this Article for more than
2490 days after the payment of those contributions is due, the
25Fund may, after giving notice to the city, certify to the State
26Comptroller the amounts of the delinquent payments, and the

 

 

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1Comptroller must, beginning in fiscal year 2016, deduct and
2deposit into the Fund the certified amounts or a portion of
3those amounts from the following proportions of grants of State
4funds to the city:
5        (1) in fiscal year 2016, one-third of the total amount
6    of any grants of State funds to the city;
7        (2) in fiscal year 2017, two-thirds of the total amount
8    of any grants of State funds to the city; and
9        (3) in fiscal year 2018 and each fiscal year
10    thereafter, the total amount of any grants of State funds
11    to the city.
12    The State Comptroller may not deduct from any grants of
13State funds to the city more than the amount of delinquent
14payments certified to the State Comptroller by the Fund.
15    (b) The taxes shall be levied and collected in like manner
16with the general taxes of the city, and shall be in addition to
17all other taxes which the city may levy upon all taxable
18property therein and shall be exclusive of and in addition to
19the amount of tax the city may levy for general purposes under
20Section 8-3-1 of the Illinois Municipal Code, approved May 29,
211961, as amended, or under any other law or laws which may
22limit the amount of tax which the city may levy for general
23purposes.
24    (c) The amounts of the taxes to be levied in each year
25shall be certified to the city council by the board.
26    (d) As soon as any revenue derived from such taxes is

 

 

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1collected, it shall be paid to the city treasurer and held for
2the benefit of the fund, and all such revenue shall be paid
3into the fund in accordance with the provisions of this
4Article.
5    (e) If the funds available are insufficient during any year
6to meet the requirements of this Article, the city may issue
7tax anticipation warrants, against the tax levies herein
8authorized for the current fiscal year.
9    (f) The various sums, hereinafter stated, including
10interest, to be contributed by the city, shall be taken from
11the revenue derived from the taxes or otherwise as expressly
12provided in this Section. Except for defraying the cost of
13administration of the fund during the calendar year in which a
14city first attains a population of 500,000 and comes under the
15provisions of this Article and the first calendar year
16thereafter, any money of the city derived from any source other
17than these taxes or the sale of tax anticipation warrants shall
18not be used to provide revenue for the fund, nor to pay any
19part of the cost of administration thereof, unless applied to
20make the deposit expressly authorized in this Section or the
21additional city contributions required under subsection (h).
22    (g) In lieu of levying all or a portion of the tax required
23under this Section in any year, the city may deposit with the
24city treasurer no later than March 1 of that year for the
25benefit of the fund, to be held in accordance with this
26Article, an amount that, together with the taxes levied under

 

 

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1this Section for that year, is not less than the amount of the
2city contributions for that year as certified by the board to
3the city council. The deposit may be derived from any source
4legally available for that purpose, including, but not limited
5to, the proceeds of city borrowings. The making of a deposit
6shall satisfy fully the requirements of this Section for that
7year to the extent of the amounts so deposited. Amounts
8deposited under this subsection may be used by the fund for any
9of the purposes for which the proceeds of the taxes levied
10under this Section may be used, including the payment of any
11amount that is otherwise required by this Article to be paid
12from the proceeds of those taxes.
13    (h) In addition to the contributions required under the
14other provisions of this Article, by November 1 of the
15following specified years, the city shall deposit with the city
16treasurer for the benefit of the fund, to be held and used in
17accordance with this Article, the following specified amounts:
18$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
19$5,040,000 in 2002; and $4,620,000 in 2003.
20    The additional city contributions required under this
21subsection are intended to decrease the unfunded liability of
22the fund and shall not decrease the amount of the city
23contributions required under the other provisions of this
24Article. The additional city contributions made under this
25subsection may be used by the fund for any of its lawful
26purposes.

 

 

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1    (i) In addition to the contributions required under the
2other provisions of this Article, the city shall deposit with
3the city treasurer for the benefit of the fund, to be held and
4used in accordance with this Article, 20% of any savings
5resulting from reductions in the number of firemen compared to
6the number of firemen on January 1, 2014.
7    
8(Source: P.A. 96-1495, eff. 1-1-11.)
 
9    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
10    Sec. 17-129. Employer contributions; deficiency in Fund.
11    (a) If in any fiscal year of the Board of Education ending
12prior to 1997 the total amounts paid to the Fund from the Board
13of Education (other than under this subsection, and other than
14amounts used for making or "picking up" contributions on behalf
15of teachers) and from the State do not equal the total
16contributions made by or on behalf of the teachers for such
17year, or if the total income of the Fund in any such fiscal
18year of the Board of Education from all sources is less than
19the total such expenditures by the Fund for such year, the
20Board of Education shall, in the next succeeding year, in
21addition to any other payment to the Fund set apart and
22appropriate from moneys from its tax levy for educational
23purposes, a sum sufficient to remove such deficiency or
24deficiencies, and promptly pay such sum into the Fund in order
25to restore any of the reserves of the Fund that may have been

 

 

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1so temporarily applied. Any amounts received by the Fund after
2December 4, 1997 from State appropriations, including under
3Section 17-127, shall be a credit against and shall fully
4satisfy any obligation that may have arisen, or be claimed to
5have arisen, under this subsection (a) as a result of any
6deficiency or deficiencies in the fiscal year of the Board of
7Education ending in calendar year 1997.
8    (b) (i) Notwithstanding any other provision of this
9Section, and notwithstanding any prior certification by the
10Board under subsection (c) for fiscal year 2011, the Board of
11Education's total required contribution to the Fund for fiscal
12year 2011 under this Section is $187,000,000.
13    (ii) Notwithstanding any other provision of this Section,
14the Board of Education's total required contribution to the
15Fund for fiscal year 2012 under this Section is $192,000,000.
16    (iii) Notwithstanding any other provision of this Section,
17the Board of Education's total required contribution to the
18Fund for fiscal year 2013 under this Section is $196,000,000.
19    (iv) For fiscal years 2014 through 2059, the minimum
20contribution to the Fund to be made by the Board of Education
21in each fiscal year shall be an amount determined by the Fund
22to be sufficient to bring the total assets of the Fund up to
2390% of the total actuarial liabilities of the Fund by the end
24of fiscal year 2059. In making these determinations, the
25required Board of Education contribution shall be calculated
26each year as a level percentage of the applicable employee

 

 

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1payrolls over the years remaining to and including fiscal year
22059 and shall be determined under the projected unit credit
3actuarial cost method.
4    (v) Beginning in fiscal year 2060, the minimum Board of
5Education contribution for each fiscal year shall be the amount
6needed to maintain the total assets of the Fund at 90% of the
7total actuarial liabilities of the Fund.
8    (vi) Notwithstanding any other provision of this
9subsection (b), for any fiscal year, the contribution to the
10Fund from the Board of Education shall not be required to be in
11excess of the amount calculated as needed to maintain the
12assets (or cause the assets to be) at the 90% level by the end
13of the fiscal year.
14    (vii) Any contribution by the State to or for the benefit
15of the Fund, including, without limitation, as referred to
16under Section 17-127, shall be a credit against any
17contribution required to be made by the Board of Education
18under this subsection (b).
19    (c) The Board shall determine the amount of Board of
20Education contributions required for each fiscal year on the
21basis of the actuarial tables and other assumptions adopted by
22the Board and the recommendations of the actuary, in order to
23meet the minimum contribution requirements of subsections (a)
24and (b). Annually, on or before February 28, the Board shall
25certify to the Board of Education the amount of the required
26Board of Education contribution for the coming fiscal year. The

 

 

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1certification shall include a copy of the actuarial
2recommendations upon which it is based.
3    (d) In addition to the contributions required under the
4other provisions of this Article, the city shall deposit with
5the city treasurer for the benefit of the fund, to be held and
6used in accordance with this Article, 20% of any savings
7resulting from reductions in the number of teachers compared to
8the number of teachers on January 1, 2014.
9(Source: P.A. 96-889, eff. 4-14-10.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.38 as follows:
 
12    (30 ILCS 805/8.38 new)
13    Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 98th General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".