HB3178ham001 99TH GENERAL ASSEMBLY

Rep. Elaine Nekritz

Filed: 3/23/2015

09900HB3178ham001 LRB099 10186 EFG 33311 a

AMENDMENT TO HOUSE BILL 3178

AMENDMENT NO. ______. Amend House Bill 3178 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois State Auditing Act is amended by changing Section 2-8.1 as follows:

(30 ILCS 5/2-8.1)

Sec. 2-8.1. Actuarial Responsibilities.

(a) The Auditor General shall contract with or hire an actuary to serve as the State Actuary. The State Actuary shall be retained by, serve at the pleasure of, and be under the supervision of the Auditor General and shall be paid from appropriations to the office of the Auditor General. The State Actuary may be selected by the Auditor General without engaging in a competitive procurement process.

(b) The State Actuary shall:

(1) review assumptions and valuations prepared by actuaries retained by the boards of trustees of the State-funded retirement systems;

(2) issue preliminary reports to the boards of trustees of the State-funded retirement systems concerning proposed certifications of required State contributions submitted to the State Actuary by those boards;

(3) cooperate with the boards of trustees of the State-funded retirement systems to identify recommended changes in actuarial assumptions that the boards must consider before finalizing their certifications of the required State contributions;

(4) conduct reviews of the actuarial practices of the boards of trustees of the State-funded retirement systems;

(5) make additional reports as directed by joint resolution of the General Assembly; and

(6) perform any other duties assigned by the Auditor General, including, but not limited to, reviews of the actuarial practices of other entities.

(c) On or before January 1, 2013 and each January 1 thereafter, the Auditor General shall submit a written report to the General Assembly and Governor documenting the initial assumptions and valuations prepared by actuaries retained by the boards of trustees of the State-funded retirement systems, any changes recommended by the State Actuary in the actuarial assumptions, and the responses of each board to the State Actuary's recommendations.

(d) For the purposes of this Section, "State-funded retirement system" means a retirement system established pursuant to Article 2, 14, 15, 16, or 18 of the Illinois Pension Code.

(e) Every 5 years, the State Actuary shall fully replicate the actuarial valuation used to report the financial condition of each of the 5 State-funded retirement systems, based on the same census data, assumptions, and actuarial methods used in the actuarial valuation. The full-scope actuarial audit shall include an examination of methods and assumptions used for the actuarial valuation for reasonableness and internal consistency. The cost of the full-scope actuarial audit shall be paid by the retirement system as an administrative expense.

The full-scope actuarial audits required under this subsection (e) shall begin with:

(1) State fiscal year 2016 for the retirement system established under Article 2 of the Illinois Pension Code;

(2) State fiscal year 2017 for the retirement system established under Article 14 of the Illinois Pension Code;

(3) State fiscal year 2018 for the retirement system established under Article 15 of the Illinois Pension Code;

(4) State fiscal year 2019 for the retirement system established under Article 16 of the Illinois Pension Code; and

(5) State fiscal year 2020 for the retirement system established under Article 18 of the Illinois Pension Code.

(Source: P.A. 97-694, eff. 6-18-12.)

Section 99. Effective date. This Act takes effect upon becoming law.".