97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3393

 

Introduced 2/24/2011, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/8-173  from Ch. 108 1/2, par. 8-173
30 ILCS 805/8.35 new

    Amends the Chicago Municipal Article of the Illinois Pension Code. Provides that the city shall levy a tax annually at a rate on the dollar of the value, as equalized or assessed by the Department of Revenue of all taxable property within the city for the year 2012 and each year thereafter, that will produce, when extended, an amount equal to or greater than the total amount of contributions made by or on behalf of employees to the Fund for annuity purposes in the calendar year 2 years prior to the year for which the annual applicable tax is levied, multiplied by 1.25. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
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 8-173 as follows:
 
6    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
7    Sec. 8-173. Financing; tax levy.
8    (a) Except as provided in subsection (f) of this Section,
9the city council of the city shall levy a tax annually upon all
10taxable property in the city at a rate that will produce a sum
11which, when added to the amounts deducted from the salaries of
12the employees or otherwise contributed by them and the amounts
13deposited under subsection (f), will be sufficient for the
14requirements of this Article, but which when extended will
15produce an amount not to exceed the greater of the following:
16(a) the sum obtained by the levy of a tax of .1093% of the
17value, as equalized or assessed by the Department of Revenue,
18of all taxable property within such city, or (b) the sum of
19$12,000,000. However any city in which a Fund has been
20established and in operation under this Article for more than 3
21years prior to 1970 shall levy for the year 1970 a tax at a rate
22on the dollar of assessed valuation of all taxable property
23that will produce, when extended, an amount not to exceed 1.2

 

 

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1times the total amount of contributions made by employees to
2the Fund for annuity purposes in the calendar year 1968, and,
3for the year 1971 and 1972 such levy that will produce, when
4extended, an amount not to exceed 1.3 times the total amount of
5contributions made by employees to the Fund for annuity
6purposes in the calendar years 1969 and 1970, respectively; and
7for the year 1973 an amount not to exceed 1.365 times such
8total amount of contributions made by employees for annuity
9purposes in the calendar year 1971; and for the year 1974 an
10amount not to exceed 1.430 times such total amount of
11contributions made by employees for annuity purposes in the
12calendar year 1972; and for the year 1975 an amount not to
13exceed 1.495 times such total amount of contributions made by
14employees for annuity purposes in the calendar year 1973; and
15for the year 1976 an amount not to exceed 1.560 times such
16total amount of contributions made by employees for annuity
17purposes in the calendar year 1974; and for the year 1977 an
18amount not to exceed 1.625 times such total amount of
19contributions made by employees for annuity purposes in the
20calendar year 1975; and for the year 1978 and each year
21thereafter, such levy as will produce, when extended, an amount
22not to exceed the total amount of contributions made by or on
23behalf of employees to the Fund for annuity purposes in the
24calendar year 2 years prior to the year for which the annual
25applicable tax is levied, multiplied by 1.690 for the years
261978 through 1998, and by 1.250 for the years year 1999 through

 

 

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12011; and for the each year 2012 and each year thereafter, such
2levy as will produce, when extended, an amount equal to or
3greater than the total amount of contributions made by or on
4behalf of employees to the Fund for annuity purposes in the
5calendar year 2 years prior to the year for which the annual
6applicable tax is levied, multiplied by 1.25 thereafter.
7    The tax shall be levied and collected in like manner with
8the general taxes of the city, and shall be exclusive of and in
9addition to the amount of tax the city is now or may hereafter
10be authorized to levy for general purposes under any laws which
11may limit the amount of tax which the city may levy for general
12purposes. The county clerk of the county in which the city is
13located, in reducing tax levies under the provisions of any Act
14concerning the levy and extension of taxes, shall not consider
15the tax herein provided for as a part of the general tax levy
16for city purposes, and shall not include the same within any
17limitation of the percent of the assessed valuation upon which
18taxes are required to be extended for such city.
19    Revenues derived from such tax shall be paid to the city
20treasurer of the city as collected and held by him for the
21benefit of the fund.
22    If the payments on account of taxes are insufficient during
23any year to meet the requirements of this Article, the city may
24issue tax anticipation warrants against the current tax levy.
25    (b) On or before January 10, annually, the board shall
26notify the city council of the requirements of this Article

 

 

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1that the tax herein provided shall be levied for that current
2year. The board shall compute the amounts necessary to be
3credited to the reserves established and maintained as herein
4provided, and shall make an annual determination of the amount
5of the required city contributions, and certify the results
6thereof to the city council.
7    (c) In respect to employees of the city who are transferred
8to the employment of a park district by virtue of the "Exchange
9of Functions Act of 1957", the corporate authorities of the
10park district shall annually levy a tax upon all the taxable
11property in the park district at such rate per cent of the
12value of such property, as equalized or assessed by the
13Department of Revenue, as shall be sufficient, when added to
14the amounts deducted from their salaries and otherwise
15contributed by them to provide the benefits to which they and
16their dependents and beneficiaries are entitled under this
17Article. The city shall not levy a tax hereunder in respect to
18such employees.
19    The tax so levied by the park district shall be in addition
20to and exclusive of all other taxes authorized to be levied by
21the park district for corporate, annuity fund, or other
22purposes. The county clerk of the county in which the park
23district is located, in reducing any tax levied under the
24provisions of any act concerning the levy and extension of
25taxes shall not consider such tax as part of the general tax
26levy for park purposes, and shall not include the same in any

 

 

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1limitation of the per cent of the assessed valuation upon which
2taxes are required to be extended for the park district. The
3proceeds of the tax levied by the park district, upon receipt
4by the district, shall be immediately paid over to the city
5treasurer of the city for the uses and purposes of the fund.
6    The various sums to be contributed by the city and park
7district and allocated for the purposes of this Article, and
8any interest to be contributed by the city, shall be derived
9from the revenue from the taxes authorized in this Section or
10otherwise as expressly provided in this Section.
11    If it is not possible or practicable for the city to make
12contributions for age and service annuity and widow's annuity
13at the same time that employee contributions are made for such
14purposes, such city contributions shall be construed to be due
15and payable as of the end of the fiscal year for which the tax
16is levied and shall accrue thereafter with interest at the
17effective rate until paid.
18    (d) With respect to employees whose wages are funded as
19participants under the Comprehensive Employment and Training
20Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2193-567, 88 Stat. 1845), hereinafter referred to as CETA,
22subsequent to October 1, 1978, and in instances where the board
23has elected to establish a manpower program reserve, the board
24shall compute the amounts necessary to be credited to the
25manpower program reserves established and maintained as herein
26provided, and shall make a periodic determination of the amount

 

 

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1of required contributions from the City to the reserve to be
2reimbursed by the federal government in accordance with rules
3and regulations established by the Secretary of the United
4States Department of Labor or his designee, and certify the
5results thereof to the City Council. Any such amounts shall
6become a credit to the City and will be used to reduce the
7amount which the City would otherwise contribute during
8succeeding years for all employees.
9    (e) In lieu of establishing a manpower program reserve with
10respect to employees whose wages are funded as participants
11under the Comprehensive Employment and Training Act of 1973, as
12authorized by subsection (d), the board may elect to establish
13a special municipality contribution rate for all such
14employees. If this option is elected, the City shall contribute
15to the Fund from federal funds provided under the Comprehensive
16Employment and Training Act program at the special rate so
17established and such contributions shall become a credit to the
18City and be used to reduce the amount which the City would
19otherwise contribute during succeeding years for all
20employees.
21    (f) In lieu of levying all or a portion of the tax required
22under this Section in any year, the city may deposit with the
23city treasurer no later than March 1 of that year for the
24benefit of the fund, to be held in accordance with this
25Article, an amount that, together with the taxes levied under
26this Section for that year, is not less than the amount of the

 

 

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1city contributions for that year as certified by the board to
2the city council. The deposit may be derived from any source
3legally available for that purpose, including, but not limited
4to, the proceeds of city borrowings. The making of a deposit
5shall satisfy fully the requirements of this Section for that
6year to the extent of the amounts so deposited. Amounts
7deposited under this subsection may be used by the fund for any
8of the purposes for which the proceeds of the tax levied by the
9city under this Section may be used, including the payment of
10any amount that is otherwise required by this Article to be
11paid from the proceeds of that tax.
12(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
1390-766, eff. 8-14-98.)
 
14    Section 90. The State Mandates Act is amended by adding
15Section 8.35 as follows:
 
16    (30 ILCS 805/8.35 new)
17    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
18of this Act, no reimbursement by the State is required for the
19implementation of any mandate created by this amendatory Act of
20the 97th General Assembly.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.