97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3395

 

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

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/11-169  from Ch. 108 1/2, par. 11-169
30 ILCS 805/8.35 new

    Amends the Chicago Laborers 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 1.00. 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 11-169 as follows:
 
6    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
7    Sec. 11-169. 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 the rate that will produce a
11sum which, when added to the amounts deducted from the salaries
12of the employees or otherwise contributed by them and the
13amounts deposited under subsection (f), will be sufficient for
14the requirements of this Article. For the years prior to the
15year 1950 the tax rate shall be as provided for under "The 1935
16Act". Beginning with the year 1950 to and including the year
171969 such tax shall be not more than .036% annually of the
18value, as equalized or assessed by the Department of Revenue,
19of all taxable property within such city. Beginning with the
20year 1970 and each year thereafter the city shall levy a tax
21annually at a rate on the dollar of the value, as equalized or
22assessed by the Department of Revenue of all taxable property
23within such city that will produce, when extended, not to

 

 

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1exceed an amount equal to the total amount of contributions by
2the employees to the fund made in the calendar year 2 years
3prior to the year for which the annual applicable tax is
4levied, multiplied by 1.1 for the years 1970, 1971 and 1972;
51.145 for the year 1973; 1.19 for the year 1974; 1.235 for the
6year 1975; 1.280 for the year 1976; 1.325 for the year 1977;
71.370 for the years 1978 through 1998; and 1.000 for the years
8year 1999 through 2011; and for the year 2012 and each year
9thereafter, such levy as will produce, when extended, an amount
10equal to or greater than the total amount of contributions made
11by or on behalf of employees to the Fund for annuity purposes
12in the calendar year 2 years prior to the year for which the
13annual applicable tax is levied, multiplied by 1.00 and for
14each year thereafter.
15    The tax shall be levied and collected in like manner with
16the general taxes of the city, and shall be exclusive of and in
17addition to the amount of tax the city is now or may hereafter
18be authorized to levy for general purposes under any laws which
19may limit the amount of tax which the city may levy for general
20purposes. The county clerk of the county in which the city is
21located, in reducing tax levies under the provisions of any Act
22concerning the levy and extension of taxes, shall not consider
23the tax herein provided for as a part of the general tax levy
24for city purposes, and shall not include the same within any
25limitation of the per cent of the assessed valuation upon which
26taxes are required to be extended for such city.

 

 

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1    Revenues derived from such tax shall be paid to the city
2treasurer of the city as collected and held by him for the
3benefit of the fund.
4    If the payments on account of taxes are insufficient during
5any year to meet the requirements of this Article, the city may
6issue tax anticipation warrants against the current tax levy.
7    (b) On or before January 10, annually, the board shall
8notify the city council of the requirement of this Article that
9the tax herein provided shall be levied for that current year.
10The board shall compute the amounts necessary for the purposes
11of this fund to be credited to the reserves established and
12maintained as herein provided, and shall make an annual
13determination of the amount of the required city contributions;
14and certify the results thereof to the city council.
15    (c) In respect to employees of the city who are transferred
16to the employment of a park district by virtue of "Exchange of
17Functions Act of 1957" the corporate authorities of the park
18district shall annually levy a tax upon all the taxable
19property in the park district at such rate per cent of the
20value of such property, as equalized or assessed by the
21Department of Revenue, as shall be sufficient, when added to
22the amounts deducted from their salaries and otherwise
23contributed by them, to provide the benefits to which they and
24their dependents and beneficiaries are entitled under this
25Article. The city shall not levy a tax hereunder in respect to
26such employees.

 

 

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1    The tax so levied by the park district shall be in addition
2to and exclusive of all other taxes authorized to be levied by
3the park district for corporate, annuity fund, or other
4purposes. The county clerk of the county in which the park
5district is located, in reducing any tax levied under the
6provisions of any Act concerning the levy and extension of
7taxes shall not consider such tax as part of the general tax
8levy for park purposes, and shall not include the same in any
9limitation of the per cent of the assessed valuation upon which
10taxes are required to be extended for the park district. The
11proceeds of the tax levied by the park district, upon receipt
12by the district, shall be immediately paid over to the city
13treasurer of the city for the uses and purposes of the fund.
14    The various sums to be contributed by the city and
15allocated for the purposes of this Article, and any interest to
16be contributed by the city, shall be taken from the revenue
17derived from the taxes authorized in this Section, and no money
18of such city derived from any source other than the levy and
19collection of those taxes or the sale of tax anticipation
20warrants in accordance with the provisions of this Article
21shall be used to provide revenue for this Article, except as
22expressly provided in this Section.
23    If it is not possible for the city to make contributions
24for age and service annuity and widow's annuity concurrently
25with the employee's contributions made for such purposes, such
26city shall make such contributions as soon as possible and

 

 

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1practicable thereafter with interest thereon at the effective
2rate to the time they shall be made.
3    (d) With respect to employees whose wages are funded as
4participants under the Comprehensive Employment and Training
5Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
693-567, 88 Stat. 1845), hereinafter referred to as CETA,
7subsequent to October 1, 1978, and in instances where the board
8has elected to establish a manpower program reserve, the board
9shall compute the amounts necessary to be credited to the
10manpower program reserves established and maintained as herein
11provided, and shall make a periodic determination of the amount
12of required contributions from the City to the reserve to be
13reimbursed by the federal government in accordance with rules
14and regulations established by the Secretary of the United
15States Department of Labor or his designee, and certify the
16results thereof to the City Council. Any such amounts shall
17become a credit to the City and will be used to reduce the
18amount which the City would otherwise contribute during
19succeeding years for all employees.
20    (e) In lieu of establishing a manpower program reserve with
21respect to employees whose wages are funded as participants
22under the Comprehensive Employment and Training Act of 1973, as
23authorized by subsection (d), the board may elect to establish
24a special municipality contribution rate for all such
25employees. If this option is elected, the City shall contribute
26to the Fund from federal funds provided under the Comprehensive

 

 

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1Employment and Training Act program at the special rate so
2established and such contributions shall become a credit to the
3City and be used to reduce the amount which the City would
4otherwise contribute during succeeding years for all
5employees.
6    (f) In lieu of levying all or a portion of the tax required
7under this Section in any year, the city may deposit with the
8city treasurer no later than March 1 of that year for the
9benefit of the fund, to be held in accordance with this
10Article, an amount that, together with the taxes levied under
11this Section for that year, is not less than the amount of the
12city contributions for that year as certified by the board to
13the city council. The deposit may be derived from any source
14legally available for that purpose, including, but not limited
15to, the proceeds of city borrowings. The making of a deposit
16shall satisfy fully the requirements of this Section for that
17year to the extent of the amounts so deposited. Amounts
18deposited under this subsection may be used by the fund for any
19of the purposes for which the proceeds of the tax levied by the
20city under this Section may be used, including the payment of
21any amount that is otherwise required by this Article to be
22paid from the proceeds of that tax.
23(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
 
24    Section 90. The State Mandates Act is amended by adding
25Section 8.35 as follows:
 

 

 

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1    (30 ILCS 805/8.35 new)
2    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 97th General Assembly.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.