96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3535


 
Introduced 2/10/2010, by Sen. Kwame Raoul
 
SYNOPSIS AS INTRODUCED:
 		





 








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








     Amends the Chicago Teacher Article of the Illinois Pension Code. Changes references from "Board of Education" to "Chicago Board of Education" and from "Board" to "Pension Board". Effective immediately.
  















LRB096 19099 AMC 34490 b

















PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 




  






SB3535

LRB096 19099 AMC 34490 b





  
1
    AN ACT concerning public employee benefits.
  
 
2
    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:
  
 
 
4
    Section 5. The Illinois Pension Code is amended  by changing 
5
Section 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 Chicago Board of Education 
9
ending prior to 1997 the
total amounts paid to the Fund from 
10
the Chicago Board of Education (other than under
this 
11
subsection, and other than amounts used for making or "picking 
12
up"
contributions on behalf of teachers) and from the State do 
13
not equal the total
contributions made by or on behalf of the 
14
teachers for such year, or if the
total income of the Fund in 
15
any such fiscal year of the Chicago Board of Education from
all 
16
sources is less than the total such expenditures by the Fund 
17
for such year,
the Chicago Board of Education shall, in the 
18
next succeeding year, in addition to any
other payment to the 
19
Fund set apart and appropriate from moneys from its tax
levy 
20
for educational purposes, a sum sufficient to remove such 
21
deficiency or
deficiencies, and promptly pay such sum into the 
22
Fund in order to restore any
of the reserves of the Fund that 
23
may have been so temporarily applied.  Any
amounts received by 
 


 






SB3535
- 2 -
LRB096 19099 AMC 34490 b




1
the Fund after December 4, 1997 from State appropriations, 
2
including under Section
17-127, shall be a credit against and 
3
shall fully satisfy any obligation that
may have arisen, or be 
4
claimed to have arisen, under this subsection (a) as a
result 
5
of any deficiency or deficiencies in the fiscal year of the 
6
Chicago Board of
Education ending in calendar year 1997.

7
    (b) (i) For fiscal years 2011 through 2045, the minimum 
8
contribution
to the Fund to be made by the Chicago Board of 
9
Education in each fiscal year shall be
an amount determined by 
10
the Fund to be sufficient to bring the total assets of
the Fund 
11
up to 90% of the total actuarial liabilities of the Fund by the 
12
end of
fiscal year 2045.  In making these determinations, the 
13
required Chicago Board of
Education contribution shall be 
14
calculated each year as a level percentage of
the applicable 
15
employee payrolls over the years remaining to and including

16
fiscal year 2045 and shall
be determined under the projected 
17
unit credit actuarial cost method.

18
    (ii) For fiscal years 1999 through 2010, the Chicago Board 
19
of Education's
contribution to the Fund, as a percentage of the 
20
applicable employee payroll,
shall be increased in equal annual 
21
increments so that by fiscal year 2011, the Chicago
Board of 
22
Education is contributing at the rate required under this 
23
subsection.

24
    (iii) Beginning in fiscal year 2046, the minimum Chicago 
25
Board of Education
contribution for each fiscal year shall be 
26
the amount needed to maintain the
total assets of the Fund at 
 


 






SB3535
- 3 -
LRB096 19099 AMC 34490 b




1
90% of the total actuarial liabilities of the Fund.

2
    (iv) Notwithstanding the provisions of paragraphs (i), 
3
(ii), and (iii)
of this subsection (b), for any fiscal year the 
4
contribution to the Fund from
the Chicago Board of Education 
5
shall not be required to be in excess of the amount
calculated 
6
as needed to maintain the assets (or cause the assets to be) at 
7
the
90% level by the end of the fiscal year.

8
    (v) Any contribution by the State to or for the benefit of 
9
the Fund,
including, without limitation, as referred to under 
10
Section 17-127, shall be a
credit against any contribution 
11
required to be made by the Chicago Board of Education
under 
12
this subsection (b).

13
    (c) The Pension Board shall determine the amount of Chicago 
14
Board of Education
contributions required for each fiscal year 
15
on the basis of the actuarial
tables and other assumptions 
16
adopted by the Pension Board and the recommendations of
the 
17
actuary, in order to meet the minimum contribution requirements 
18
of
subsections (a) and (b).  Annually, on or before February 28, 
19
the Pension Board shall
certify to the Chicago Board of 
20
Education the amount of the required Chicago Board of Education

21
contribution for the coming fiscal year.  The certification 
22
shall include a
copy of the actuarial recommendations upon 
23
which it is based.

24
(Source: P.A. 89-15, eff. 5-30-95; 90-548, eff. 12-4-97; 
25
90-566, eff. 1-2-98;
90-655, eff. 7-30-98.)

  
 
26
    Section 99. Effective date. This Act takes effect upon 
 


 






SB3535
- 4 -
LRB096 19099 AMC 34490 b




1
becoming law.