95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5876


 
Introduced , by Rep. Tom Cross
 
SYNOPSIS AS INTRODUCED:
 		








  



40 ILCS 5/2-124
  from Ch. 108 1/2, par. 2-124







    Amends the General Assembly Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
















LRB095 16132 AMC 42151 b

















PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB5876

LRB095 16132 AMC 42151 b






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    AN ACT concerning public employee benefits.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Pension Code is amended  by changing 
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Section 2-124 as follows:
 



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    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)


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    Sec. 2-124. Contributions by State. 

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    (a) The The State shall make contributions to the System by

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appropriations of amounts which, together with the 
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contributions of
participants, interest earned on investments, 
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and other income
will meet the cost of maintaining and 
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administering the System on a 90%
funded basis in accordance 
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with actuarial recommendations.

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    (b) The Board shall determine the amount of State

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contributions required for each fiscal year on the basis of the

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actuarial tables and other assumptions adopted by the Board and 
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the
prescribed rate of interest, using the formula in 
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subsection (c).

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    (c) For State fiscal years 2011 through 2045, the minimum 
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contribution
to the System to be made by the State for each 
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fiscal year shall be an amount
determined by the System to be 
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sufficient to bring the total assets of the
System up to 90% of 
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the total actuarial liabilities of the System by the end of

 


 






HB5876
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State fiscal year 2045.  In making these determinations, the 
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required State
contribution shall be calculated each year as a 
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level percentage of payroll
over the years remaining to and 
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including fiscal year 2045 and shall be
determined under the 
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projected unit credit actuarial cost method.

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    For State fiscal years 1996 through 2005, the State 
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contribution to
the System, as a percentage of the applicable 
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employee payroll, shall be
increased in equal annual increments 
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so that by State fiscal year 2011, the
State is contributing at 
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the rate required under this Section.

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    Notwithstanding any other provision of this Article, the 
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total required State
contribution for State fiscal year 2006 is 
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$4,157,000.

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    Notwithstanding any other provision of this Article, the 
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total required State
contribution for State fiscal year 2007 is 
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$5,220,300.

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    For each of State fiscal years 2008 through 2010, the State 
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contribution to
the System, as a percentage of the applicable 
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employee payroll, shall be
increased in equal annual increments 
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from the required State contribution for State fiscal year 
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2007, so that by State fiscal year 2011, the
State is 
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contributing at the rate otherwise required under this Section.

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    Beginning in State fiscal year 2046, the minimum State 
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contribution for
each fiscal year shall be the amount needed to 
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maintain the total assets of
the System at 90% of the total 
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actuarial liabilities of the System.

 


 






HB5876
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    Amounts received by the System pursuant to Section 25 of 
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the Budget Stabilization Act in any fiscal year do not reduce 
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and do not constitute payment of any portion of the minimum 
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State contribution required under this Article in that fiscal 
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year.  Such amounts shall not reduce, and shall not be included 
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in the calculation of, the required State contributions under 
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this Article in any future year until the System has reached a 
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funding ratio of at least 90%.  A reference in this Article to 
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the "required State contribution" or any substantially similar 
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term does not include or apply to any amounts payable to the 
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System under  Section 25 of the Budget Stabilization Act.

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    Notwithstanding any other provision of this Section, the 
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required State
contribution for State fiscal year 2005 and for 
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fiscal year 2008 and each fiscal year thereafter, as
calculated 
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under this Section and
certified under Section 2-134, shall not 
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exceed an amount equal to (i) the
amount of the required State 
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contribution that would have been calculated under
this Section 
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for that fiscal year if the System had not received any 
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payments
under subsection (d) of Section 7.2 of the General 
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Obligation Bond Act, minus
(ii) the portion of the State's 
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total debt service payments for that fiscal
year on the bonds 
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issued for the purposes of that Section 7.2, as determined
and 
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certified by the Comptroller, that is the same as the System's 
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portion of
the total moneys distributed under subsection (d) of 
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Section 7.2 of the General
Obligation Bond Act. In determining 
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this maximum for State fiscal years 2008 through 2010, however, 
 


 






HB5876
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the amount referred to in item (i) shall be increased, as a 
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percentage of the applicable employee payroll, in equal 
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increments calculated from the sum of the required State 
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contribution for State fiscal year 2007 plus the applicable 
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portion of the State's total debt service payments for fiscal 
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year 2007  on the bonds issued for the purposes of Section 7.2 
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of the General
Obligation Bond Act, so that, by State fiscal 
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year 2011, the
State is contributing at the rate otherwise 
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required under this Section.


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(Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, 
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eff. 6-6-06.)