Sen. Kwame Raoul

Filed: 5/26/2011

 

 


 

 


 
09700HB1719sam001LRB097 08643 JDS 56281 a

1
AMENDMENT TO HOUSE BILL 1719

2    AMENDMENT NO. ______. Amend House Bill 1719 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 5-168 and 6-165 as follows:
 
6    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
7    Sec. 5-168. Financing.
8    (a) Except as expressly provided in this Section, the city
9shall levy a tax annually upon all taxable property therein for
10the purpose of providing revenue for the fund.
11    The tax shall be at a rate that will produce a sum which,
12when added to the amounts deducted from the policemen's
13salaries and the amounts deposited in accordance with
14subsection (g), is sufficient for the purposes of the fund.
15    For the years 1968 and 1969, the city council shall levy a
16tax annually at a rate on the dollar of the assessed valuation

 

 

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1of all taxable property that will produce, when extended, not
2to exceed $9,700,000. Beginning with the year 1970 and through
32014, the city council shall levy a tax annually at a rate on
4the dollar of the assessed valuation of all taxable property
5that will produce when extended an amount not to exceed the
6total amount of contributions by the policemen to the Fund made
7in the calendar year 2 years before the year for which the
8applicable annual tax is levied, multiplied by 1.40 for the tax
9levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
101.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
11by 2.00 for 1982 and for each year through 2014. Beginning in
122015, the city council shall levy a tax annually at a rate on
13the dollar of the assessed valuation of all taxable property
14that will produce when extended an annual amount that is equal
15to (1) the normal cost to the Fund, plus (2) an annual amount
16sufficient to bring the total assets of the Fund up to 80% 90%
17of the total actuarial liabilities of the Fund by the end of
18fiscal year 2065 2040, as annually updated and determined by an
19enrolled actuary employed by the Illinois Department of
20Insurance or by an enrolled actuary retained by the Fund or the
21city. In making these determinations, the required minimum
22employer contribution shall be calculated each year as a level
23percentage of payroll over the years remaining up to and
24including fiscal year 2065 2040 and shall be determined under
25the projected unit credit actuarial cost method. For the
26purposes of this subsection (a), contributions by the policeman

 

 

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1to the Fund shall not include payments made by a policeman to
2establish credit under Section 5-214.2 of this Code.
3    (a-5) For purposes of determining the required employer
4contribution to the Fund, the value of the Fund's assets shall
5be equal to the actuarial value of the Fund's assets, which
6shall be calculated as follows:
7        (1) On March 30, 2011, the actuarial value of the
8    Fund's assets shall be equal to the market value of the
9    assets as of that date.
10        (2) In determining the actuarial value of the Fund's
11    assets for fiscal years after March 30, 2011, any actuarial
12    gains or losses from investment return incurred in a fiscal
13    year shall be recognized in equal annual amounts over the
14    5-year period following that fiscal year.
15    (a-7) If the city fails to transmit to the Fund
16contributions required of it under this Article for more than
1790 days after the payment of those contributions is due, the
18Fund may, after giving notice to the city, certify to the State
19Comptroller the amounts of the delinquent payments, and the
20Comptroller must, beginning in fiscal year 2016, deduct and
21deposit into the Fund the certified amounts or a portion of
22those amounts from the following proportions of grants of State
23funds to the city:
24        (1) in fiscal year 2016, one-third of the total amount
25    of any grants of State funds to the city;
26        (2) in fiscal year 2017, two-thirds of the total amount

 

 

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1    of any grants of State funds to the city; and
2        (3) in fiscal year 2018 and each fiscal year
3    thereafter, the total amount of any grants of State funds
4    to the city.
5    The State Comptroller may not deduct from any grants of
6State funds to the city more than the amount of delinquent
7payments certified to the State Comptroller by the Fund.
8    (b) The tax shall be levied and collected in like manner
9with the general taxes of the city, and is in addition to all
10other taxes which the city is now or may hereafter be
11authorized to levy upon all taxable property therein, and is
12exclusive of and in addition to the amount of tax the city is
13now or may hereafter be authorized to levy for general purposes
14under any law which may limit the amount of tax which the city
15may levy for general purposes. The county clerk of the county
16in which the city is located, in reducing tax levies under
17Section 8-3-1 of the Illinois Municipal Code, shall not
18consider the tax herein authorized as a part of the general tax
19levy for city purposes, and shall not include the tax in any
20limitation of the percent of the assessed valuation upon which
21taxes are required to be extended for the city.
22    (c) On or before January 10 of each year, the board shall
23notify the city council of the requirement that the tax herein
24authorized be levied by the city council for that current year.
25The board shall compute the amounts necessary for the purposes
26of this fund to be credited to the reserves established and

 

 

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1maintained within the fund; shall make an annual determination
2of the amount of the required city contributions; and shall
3certify the results thereof to the city council.
4    As soon as any revenue derived from the tax is collected it
5shall be paid to the city treasurer of the city and shall be
6held by him for the benefit of the fund in accordance with this
7Article.
8    (d) If the funds available are insufficient during any year
9to meet the requirements of this Article, the city may issue
10tax anticipation warrants against the tax levy for the current
11fiscal year.
12    (e) The various sums, including interest, to be contributed
13by the city, shall be taken from the revenue derived from such
14tax or otherwise as expressly provided in this Section. Any
15moneys of the city derived from any source other than the tax
16herein authorized shall not be used for any purpose of the fund
17nor the cost of administration thereof, unless applied to make
18the deposit expressly authorized in this Section or the
19additional city contributions required under subsection (h).
20    (f) If it is not possible or practicable for the city to
21make its contributions at the time that salary deductions are
22made, the city shall make such contributions as soon as
23possible thereafter, with interest thereon to the time it is
24made.
25    (g) In lieu of levying all or a portion of the tax required
26under this Section in any year, the city may deposit with the

 

 

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1city treasurer no later than March 1 of that year for the
2benefit of the fund, to be held in accordance with this
3Article, an amount that, together with the taxes levied under
4this Section for that year, is not less than the amount of the
5city contributions for that year as certified by the board to
6the city council. The deposit may be derived from any source
7legally available for that purpose, including, but not limited
8to, the proceeds of city borrowings. The making of a deposit
9shall satisfy fully the requirements of this Section for that
10year to the extent of the amounts so deposited. Amounts
11deposited under this subsection may be used by the fund for any
12of the purposes for which the proceeds of the tax levied under
13this Section may be used, including the payment of any amount
14that is otherwise required by this Article to be paid from the
15proceeds of that tax.
16    (h) In addition to the contributions required under the
17other provisions of this Article, by November 1 of the
18following specified years, the city shall deposit with the city
19treasurer for the benefit of the fund, to be held and used in
20accordance with this Article, the following specified amounts:
21$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
22$5,040,000 in 2002; and $4,620,000 in 2003.
23    The additional city contributions required under this
24subsection are intended to decrease the unfunded liability of
25the fund and shall not decrease the amount of the city
26contributions required under the other provisions of this

 

 

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1Article. The additional city contributions made under this
2subsection may be used by the fund for any of its lawful
3purposes.
4(Source: P.A. 95-1036, eff. 2-17-09; 96-1495, eff. 1-1-11.)
 
5    (40 ILCS 5/6-165)   (from Ch. 108 1/2, par. 6-165)
6    Sec. 6-165. Financing; tax.
7    (a) Except as expressly provided in this Section, each city
8shall levy a tax annually upon all taxable property therein for
9the purpose of providing revenue for the fund. For the years
10prior to the year 1960, the tax rate shall be as provided for
11in the "Firemen's Annuity and Benefit Fund of the Illinois
12Municipal Code". The tax, from and after January 1, 1968 to and
13including the year 1971, shall not exceed .0863% of the value,
14as equalized or assessed by the Department of Revenue, of all
15taxable property in the city. Beginning with the year 1972 and
16through 2014, the city shall levy a tax annually at a rate on
17the dollar of the value, as equalized or assessed by the
18Department of Revenue of all taxable property within such city
19that will produce, when extended, not to exceed an amount equal
20to the total amount of contributions by the employees to the
21fund made in the calendar year 2 years prior to the year for
22which the annual applicable tax is levied, multiplied by 2.23
23through the calendar year 1981, and by 2.26 for the year 1982
24and for each year through 2014. Beginning in 2015, the city
25council shall levy a tax annually at a rate on the dollar of

 

 

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1the assessed valuation of all taxable property that will
2produce when extended an annual amount that is equal to (1) the
3normal cost to the Fund, plus (2) an annual amount sufficient
4to bring the total assets of the Fund up to 80% 90% of the total
5actuarial liabilities of the Fund by the end of fiscal year
62065 2040, as annually updated and determined by an enrolled
7actuary employed by the Illinois Department of Insurance or by
8an enrolled actuary retained by the Fund or the city. In making
9these determinations, the required minimum employer
10contribution shall be calculated each year as a level
11percentage of payroll over the years remaining up to and
12including fiscal year 2065 2040 and shall be determined under
13the projected unit credit actuarial cost method.
14    To provide revenue for the ordinary death benefit
15established by Section 6-150 of this Article, in addition to
16the contributions by the firemen for this purpose, the city
17council shall for the year 1962 and each year thereafter
18annually levy a tax, which shall be in addition to and
19exclusive of the taxes authorized to be levied under the
20foregoing provisions of this Section, upon all taxable property
21in the city, as equalized or assessed by the Department of
22Revenue, at such rate per cent of the value of such property as
23shall be sufficient to produce for each year the sum of
24$142,000.
25    The amounts produced by the taxes levied annually, together
26with the deposit expressly authorized in this Section, shall be

 

 

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1sufficient, when added to the amounts deducted from the
2salaries of firemen and applied to the fund, to provide for the
3purposes of the fund.
4    (a-5) For purposes of determining the required employer
5contribution to the Fund, the value of the Fund's assets shall
6be equal to the actuarial value of the Fund's assets, which
7shall be calculated as follows:
8        (1) On March 30, 2011, the actuarial value of the
9    Fund's assets shall be equal to the market value of the
10    assets as of that date.
11        (2) In determining the actuarial value of the Fund's
12    assets for fiscal years after March 30, 2011, any actuarial
13    gains or losses from investment return incurred in a fiscal
14    year shall be recognized in equal annual amounts over the
15    5-year period following that fiscal year.
16    (a-7) If the city fails to transmit to the Fund
17contributions required of it under this Article for more than
1890 days after the payment of those contributions is due, the
19Fund may, after giving notice to the city, certify to the State
20Comptroller the amounts of the delinquent payments, and the
21Comptroller must, beginning in fiscal year 2016, deduct and
22deposit into the Fund the certified amounts or a portion of
23those amounts from the following proportions of grants of State
24funds to the city:
25        (1) in fiscal year 2016, one-third of the total amount
26    of any grants of State funds to the city;

 

 

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1        (2) in fiscal year 2017, two-thirds of the total amount
2    of any grants of State funds to the city; and
3        (3) in fiscal year 2018 and each fiscal year
4    thereafter, the total amount of any grants of State funds
5    to the city.
6    The State Comptroller may not deduct from any grants of
7State funds to the city more than the amount of delinquent
8payments certified to the State Comptroller by the Fund.
9    (b) The taxes shall be levied and collected in like manner
10with the general taxes of the city, and shall be in addition to
11all other taxes which the city may levy upon all taxable
12property therein and shall be exclusive of and in addition to
13the amount of tax the city may levy for general purposes under
14Section 8-3-1 of the Illinois Municipal Code, approved May 29,
151961, as amended, or under any other law or laws which may
16limit the amount of tax which the city may levy for general
17purposes.
18    (c) The amounts of the taxes to be levied in each year
19shall be certified to the city council by the board.
20    (d) As soon as any revenue derived from such taxes is
21collected, it shall be paid to the city treasurer and held for
22the benefit of the fund, and all such revenue shall be paid
23into the fund in accordance with the provisions of this
24Article.
25    (e) If the funds available are insufficient during any year
26to meet the requirements of this Article, the city may issue

 

 

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1tax anticipation warrants, against the tax levies herein
2authorized for the current fiscal year.
3    (f) The various sums, hereinafter stated, including
4interest, to be contributed by the city, shall be taken from
5the revenue derived from the taxes or otherwise as expressly
6provided in this Section. Except for defraying the cost of
7administration of the fund during the calendar year in which a
8city first attains a population of 500,000 and comes under the
9provisions of this Article and the first calendar year
10thereafter, any money of the city derived from any source other
11than these taxes or the sale of tax anticipation warrants shall
12not be used to provide revenue for the fund, nor to pay any
13part of the cost of administration thereof, unless applied to
14make the deposit expressly authorized in this Section or the
15additional city contributions required under subsection (h).
16    (g) In lieu of levying all or a portion of the tax required
17under this Section in any year, the city may deposit with the
18city treasurer no later than March 1 of that year for the
19benefit of the fund, to be held in accordance with this
20Article, an amount that, together with the taxes levied under
21this Section for that year, is not less than the amount of the
22city contributions for that year as certified by the board to
23the city council. The deposit may be derived from any source
24legally available for that purpose, including, but not limited
25to, the proceeds of city borrowings. The making of a deposit
26shall satisfy fully the requirements of this Section for that

 

 

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1year to the extent of the amounts so deposited. Amounts
2deposited under this subsection may be used by the fund for any
3of the purposes for which the proceeds of the taxes levied
4under this Section may be used, including the payment of any
5amount that is otherwise required by this Article to be paid
6from the proceeds of those taxes.
7    (h) In addition to the contributions required under the
8other provisions of this Article, by November 1 of the
9following specified years, the city shall deposit with the city
10treasurer for the benefit of the fund, to be held and used in
11accordance with this Article, the following specified amounts:
12$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
13$5,040,000 in 2002; and $4,620,000 in 2003.
14    The additional city contributions required under this
15subsection are intended to decrease the unfunded liability of
16the fund and shall not decrease the amount of the city
17contributions required under the other provisions of this
18Article. The additional city contributions made under this
19subsection may be used by the fund for any of its lawful
20purposes.
21(Source: P.A. 96-1495, eff. 1-1-11.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".