State of Illinois
2013 and 2014


Introduced , by Rep. Barbara Flynn Currie


40 ILCS 5/17-129  from Ch. 108 1/2, par. 17-129

    Amends the Chicago Public Schools Article of the Pension Code. Provides that the total cost of pension benefits accrued by July 1, 2013 shall be used as the base number to determine the funds to be added by the State to the pension fund for fiscal years 2014 through 2059. Provides for additional funding to be provided by the State to the pension fund based on the total cost of pension benefits accrued by July 1, 2013.

LRB098 14224 JWD 48824 b






HB3711LRB098 14224 JWD 48824 b

1    AN ACT concerning pensions.
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 17-129 as follows:
6    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)
7    Sec. 17-129. Employer contributions; deficiency in Fund.
8    (a) If in any fiscal year of the Board of Education ending
9prior to 1997 the total amounts paid to the Fund from the Board
10of Education (other than under this subsection, and other than
11amounts used for making or "picking up" contributions on behalf
12of teachers) and from the State do not equal the total
13contributions made by or on behalf of the teachers for such
14year, or if the total income of the Fund in any such fiscal
15year of the Board of Education from all sources is less than
16the total such expenditures by the Fund for such year, the
17Board of Education shall, in the next succeeding year, in
18addition to any other payment to the Fund set apart and
19appropriate from moneys from its tax levy for educational
20purposes, a sum sufficient to remove such deficiency or
21deficiencies, and promptly pay such sum into the Fund in order
22to restore any of the reserves of the Fund that may have been
23so temporarily applied. Any amounts received by the Fund after



HB3711- 2 -LRB098 14224 JWD 48824 b

1December 4, 1997 from State appropriations, including under
2Section 17-127, shall be a credit against and shall fully
3satisfy any obligation that may have arisen, or be claimed to
4have arisen, under this subsection (a) as a result of any
5deficiency or deficiencies in the fiscal year of the Board of
6Education ending in calendar year 1997.
7    (b) (i) Notwithstanding any other provision of this
8Section, and notwithstanding any prior certification by the
9Board under subsection (c) for fiscal year 2011, the Board of
10Education's total required contribution to the Fund for fiscal
11year 2011 under this Section is $187,000,000.
12    (ii) Notwithstanding any other provision of this Section,
13the Board of Education's total required contribution to the
14Fund for fiscal year 2012 under this Section is $192,000,000.
15    (iii) Notwithstanding any other provision of this Section,
16the Board of Education's total required contribution to the
17Fund for fiscal year 2013 under this Section is $196,000,000.
18    (iv) For fiscal years 2014 through 2059, or until the State
19has amortized 100% of the total costs of benefits accrued by
20July 1, 2013, whichever is earlier, the minimum contribution to
21the Fund to be made by the State Board of Education in each
22fiscal year shall be an amount determined by the Fund to be
23sufficient to amortize, by the end of fiscal year 2059, the
24total cost of the benefits of the Fund arising before July 1,
252013 bring the total assets of the Fund up to 90% of the total
26actuarial liabilities of the Fund by the end of fiscal year



HB3711- 3 -LRB098 14224 JWD 48824 b

12059. In making these determinations, the required State Board
2of Education contribution shall be calculated each year as a
3level percentage of the applicable employee payrolls over the
4years remaining to and including fiscal year 2059 and shall be
5determined under the projected unit credit actuarial cost
7    In addition, beginning with State fiscal year 2014, the
8State shall also contribute annually a percentage of projected
9payroll, that shall be sufficient to produce an annual amount
10equal to the employer's normal cost for that fiscal year and
11any unfunded accrued liability assigned to the State for that
12year arising from benefits accrued after July 1,2013.
13    (v) Beginning in fiscal year 2060, the minimum Board of
14Education contribution for each fiscal year shall be the amount
15needed to maintain the total assets of the Fund at 90% of the
16total actuarial liabilities of the Fund.
17    (vi) Notwithstanding any other provision of this
18subsection (b), for any fiscal year, the contribution to the
19Fund from the Board of Education shall not be required to be in
20excess of the amount calculated as needed to maintain the
21assets (or cause the assets to be) at the 90% level by the end
22of the fiscal year.
23    (vii) Any contribution by the State to or for the benefit
24of the Fund, including, without limitation, as referred to
25under Section 17-127, shall be a credit against any
26contribution required to be made by the Board of Education



HB3711- 4 -LRB098 14224 JWD 48824 b

1under this subsection (b).
2    (c) The Board shall determine the amount of Board of
3Education contributions required for each fiscal year on the
4basis of the actuarial tables and other assumptions adopted by
5the Board and the recommendations of the actuary, in order to
6meet the minimum contribution requirements of subsections (a)
7and (b). Annually, on or before February 28, the Board shall
8certify to the Board of Education the amount of the required
9Board of Education contribution for the coming fiscal year. The
10certification shall include a copy of the actuarial
11recommendations upon which it is based.
12(Source: P.A. 96-889, eff. 4-14-10.)