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Full Text of SB0005  100th General Assembly

SB0005 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0005

 

Introduced 1/11/2017, by Sen. John J. Cullerton

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-127  from Ch. 108 1/2, par. 17-127
40 ILCS 15/1.1

    Amends the Chicago Teacher Article of the Illinois Pension Code. Requires the State to contribute to the Fund $215,200,000 for fiscal year 2017 and $221,300,000 for fiscal year 2018; includes provisions for certifications and monthly payments by voucher. Provides that beginning in fiscal year 2019, the State shall contribute an amount equal to the employer normal cost for that fiscal year. Amends the State Pension Funds Continuing Appropriation Act. Provides for a continuing appropriation to the Public School Teachers' Pension and Retirement Fund of Chicago, on a continuing monthly basis, of the amount, if any, by which the total available amount of all other State appropriations to that Retirement Fund for the payment of certain State contributions is less than the total amount of the vouchers for required State contributions lawfully submitted by the Fund for that month under applicable provisions of the Illinois Pension Code. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.


LRB100 06247 RPS 16284 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0005LRB100 06247 RPS 16284 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 17-127 as follows:
 
6    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
7    Sec. 17-127. Financing; revenues for the Fund.
8    (a) The revenues for the Fund shall consist of: (1) amounts
9paid into the Fund by contributors thereto and from employer
10contributions and State appropriations in accordance with this
11Article; (2) amounts contributed to the Fund by an Employer;
12(3) amounts contributed to the Fund pursuant to any law now in
13force or hereafter to be enacted; (4) contributions from any
14other source; and (5) the earnings on investments.
15    (b) The General Assembly finds that for many years the
16State has contributed to the Fund an annual amount that is
17between 20% and 30% of the amount of the annual State
18contribution to the Article 16 retirement system, and the
19General Assembly declares that it is its goal and intention to
20continue this level of contribution to the Fund in the future.
21    (c) Beginning in State fiscal year 1999, the State shall
22include in its annual contribution to the Fund an additional
23amount equal to 0.544% of the Fund's total teacher payroll;

 

 

SB0005- 2 -LRB100 06247 RPS 16284 b

1except that this additional contribution need not be made in a
2fiscal year if the Board has certified in the previous fiscal
3year that the Fund is at least 90% funded, based on actuarial
4determinations. These additional State contributions are
5intended to offset a portion of the cost to the Fund of the
6increases in retirement benefits resulting from this
7amendatory Act of 1998.
8    (d) In addition to any other contribution required under
9this Article, including the contribution required under
10subsection (c), the State shall contribute to the Fund the
11following amounts:
12        (1) For State fiscal year 2017, the State shall
13    contribute $215,200,000.
14        (2) For State fiscal year 2018, the State shall
15    contribute $221,300,000.
16        (3) Beginning in State fiscal year 2019, the State
17    shall contribute for each fiscal year an amount to be
18    determined by the Fund, equal to the employer normal cost
19    for that fiscal year, plus the amount allowed pursuant to
20    paragraph (3) of Section 17-142.1, to defray health
21    insurance costs.
22    (e) The Board shall determine the amount of State
23contributions required for each fiscal year on the basis of the
24actuarial tables and other assumptions adopted by the Board and
25the recommendations of the actuary. On or before November 1 of
26each year, beginning November 1, 2017, the Board shall submit

 

 

SB0005- 3 -LRB100 06247 RPS 16284 b

1to the State Actuary, the Governor, and the General Assembly a
2proposed certification of the amount of the required State
3contribution to the Fund for the next fiscal year, along with
4all of the actuarial assumptions, calculations, and data upon
5which that proposed certification is based.
6    On or before January 1 of each year, beginning January 1,
72018, the State Actuary shall issue a preliminary report
8concerning the proposed certification and identifying, if
9necessary, recommended changes in actuarial assumptions that
10the Board must consider before finalizing its certification of
11the required State contributions.
12    (f) On or before January 15, 2018 and each January 15
13thereafter, the Board shall certify to the Governor and the
14General Assembly the amount of the required State contribution
15for the next fiscal year. The certification shall include a
16copy of the actuarial recommendations upon which it is based
17and shall specifically identify the Fund's projected employer
18normal cost for that fiscal year. The Board's certification
19must note any deviations from the State Actuary's recommended
20changes, the reason or reasons for not following the State
21Actuary's recommended changes, and the fiscal impact of not
22following the State Actuary's recommended changes on the
23required State contribution.
24    For the purposes of this Article, including issuing
25vouchers, and for the purposes of subsection (h) of Section 1.1
26of the State Pension Funds Continuing Appropriation Act, the

 

 

SB0005- 4 -LRB100 06247 RPS 16284 b

1State contribution specified for State fiscal years 2017 and
22018 shall be deemed to have been certified, by operation of
3law and without official action by the Board or the State
4Actuary, in the amount provided in subsection (d) of this
5Section.
6    (g) Beginning in State fiscal year 2017, on the 15th day of
7each month, or as soon thereafter as may be practicable, the
8Board shall submit vouchers for payment of State contributions
9to the Fund, in a total monthly amount of one-twelfth of the
10required annual State contribution under subsection (d). These
11vouchers shall be paid by the State Comptroller and Treasurer
12by warrants drawn on the funds appropriated to the Fund for
13that fiscal year. If in any month the amount remaining
14unexpended from all other State appropriations to the Fund for
15the applicable fiscal year is less than the amount lawfully
16vouchered under this subsection, the difference shall be paid
17from the Common School Fund under the continuing appropriation
18authority provided in Section 1.1 of the State Pension Funds
19Continuing Appropriation Act.
20(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
2190-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
22    Section 10. The State Pension Funds Continuing
23Appropriation Act is amended by changing Section 1.1 as
24follows:
 

 

 

SB0005- 5 -LRB100 06247 RPS 16284 b

1    (40 ILCS 15/1.1)
2    Sec. 1.1. Appropriations to certain retirement systems.
3    (a) There is hereby appropriated from the General Revenue
4Fund to the General Assembly Retirement System, on a continuing
5monthly basis, the amount, if any, by which the total available
6amount of all other appropriations to that retirement system
7for the payment of State contributions is less than the total
8amount of the vouchers for required State contributions
9lawfully submitted by the retirement system for that month
10under Section 2-134 of the Illinois Pension Code.
11    (b) There is hereby appropriated from the General Revenue
12Fund to the State Universities Retirement System, on a
13continuing monthly basis, the amount, if any, by which the
14total available amount of all other appropriations to that
15retirement system for the payment of State contributions,
16including any deficiency in the required contributions of the
17optional retirement program established under Section 15-158.2
18of the Illinois Pension Code, is less than the total amount of
19the vouchers for required State contributions lawfully
20submitted by the retirement system for that month under Section
2115-165 of the Illinois Pension Code.
22    (c) There is hereby appropriated from the Common School
23Fund to the Teachers' Retirement System of the State of
24Illinois, on a continuing monthly basis, the amount, if any, by
25which the total available amount of all other appropriations to
26that retirement system for the payment of State contributions

 

 

SB0005- 6 -LRB100 06247 RPS 16284 b

1is less than the total amount of the vouchers for required
2State contributions lawfully submitted by the retirement
3system for that month under Section 16-158 of the Illinois
4Pension Code.
5    (d) There is hereby appropriated from the General Revenue
6Fund to the Judges Retirement System of Illinois, on a
7continuing monthly basis, the amount, if any, by which the
8total available amount of all other appropriations to that
9retirement system for the payment of State contributions is
10less than the total amount of the vouchers for required State
11contributions lawfully submitted by the retirement system for
12that month under Section 18-140 of the Illinois Pension Code.
13    (e) The continuing appropriations provided by subsections
14(a), (b), (c), and (d) of this Section shall first be available
15in State fiscal year 1996. The continuing appropriations
16provided by subsection (h) of this Section shall first be
17available as provided in that subsection (h).
18    (f) For State fiscal year 2010 only, the continuing
19appropriations provided by this Section are equal to the amount
20certified by each System on or before December 31, 2008, less
21(i) the gross proceeds of the bonds sold in fiscal year 2010
22under the authorization contained in subsection (a) of Section
237.2 of the General Obligation Bond Act and (ii) any amounts
24received from the State Pensions Fund.
25    (g) For State fiscal year 2011 only, the continuing
26appropriations provided by this Section are equal to the amount

 

 

SB0005- 7 -LRB100 06247 RPS 16284 b

1certified by each System on or before April 1, 2011, less (i)
2the gross proceeds of the bonds sold in fiscal year 2011 under
3the authorization contained in subsection (a) of Section 7.2 of
4the General Obligation Bond Act and (ii) any amounts received
5from the State Pensions Fund.
6    (h) There is hereby appropriated from the Common School
7Fund to the Public School Teachers' Pension and Retirement Fund
8of Chicago, on a continuing monthly basis, the amount, if any,
9by which the total available amount of all other State
10appropriations to that Retirement Fund for the payment of State
11contributions under subsection (d) of Section 17-127 of the
12Illinois Pension Code is less than the total amount of the
13vouchers for required State contributions lawfully submitted
14by the Retirement Fund for that month under that Section
1517-127.
16(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1796-1511, eff. 1-27-11.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law, but this Act does not take effect at all unless
20Senate Bills 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13 of the
21100th General Assembly become law.