98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3282

 

Introduced 2/14/2014, by Sen. Donne E. Trotter

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-129  from Ch. 108 1/2, par. 17-129
40 ILCS 5/17-129.1 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that beginning in FY2015, the Board of Trustees of the Chicago Teachers' Pension Fund shall submit vouchers for payment of Board of Education contributions on or as soon as possible after the 15th day of each month. Provides that if the Board of Education fails to transmit to the Fund the contributions required of it or the contributions collected by it from its participating employees for more than 90 days, the Fund may certify to the State Comptroller the amounts of the delinquent payments and the Comptroller shall deduct the certified amounts or any part of the certified amounts from any grants of State funds to the Board of Education and shall pay the deducted amount to the Fund. If State funds from which the deductions may be made are not available, permits the Fund to certify to the City Treasurer of Chicago the amounts of delinquent payments and requires the City Treasurer of Chicago to deduct the certified amounts or any part of the certified amounts from the tax levied by the Board of Education to pay the deducted amount to the Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

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 17-129 and by adding Section 17-129.1 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 Board of Education ending
9prior to 1997 the total amounts paid to the Fund from the Board
10of Education (other than under this subsection, and other than
11amounts used for making or "picking up" contributions on behalf
12of teachers) and from the State do not equal the total
13contributions made by or on behalf of the teachers for such
14year, or if the total income of the Fund in any such fiscal
15year of the Board of Education from all sources is less than
16the total such expenditures by the Fund for such year, the
17Board of Education shall, in the next succeeding year, in
18addition to any other payment to the Fund set apart and
19appropriate from moneys from its tax levy for educational
20purposes, a sum sufficient to remove such deficiency or
21deficiencies, and promptly pay such sum into the Fund in order
22to restore any of the reserves of the Fund that may have been
23so temporarily applied. Any amounts received by the Fund after

 

 

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1December 4, 1997 from State appropriations, including under
2Section 17-127, shall be a credit against and shall fully
3satisfy any obligation that may have arisen, or be claimed to
4have arisen, under this subsection (a) as a result of any
5deficiency or deficiencies in the fiscal year of the Board of
6Education ending in calendar year 1997.
7    (b) (i) Notwithstanding any other provision of this
8Section, and notwithstanding any prior certification by the
9Board under subsection (c) for fiscal year 2011, the Board of
10Education's total required contribution to the Fund for fiscal
11year 2011 under this Section is $187,000,000.
12    (ii) Notwithstanding any other provision of this Section,
13the Board of Education's total required contribution to the
14Fund for fiscal year 2012 under this Section is $192,000,000.
15    (iii) Notwithstanding any other provision of this Section,
16the Board of Education's total required contribution to the
17Fund for fiscal year 2013 under this Section is $196,000,000.
18    (iv) For fiscal years 2014 through 2059, the minimum
19contribution to the Fund to be made by the Board of Education
20in each fiscal year shall be an amount determined by the Fund
21to be sufficient to bring the total assets of the Fund up to
2290% of the total actuarial liabilities of the Fund by the end
23of fiscal year 2059. In making these determinations, the
24required Board of Education contribution shall be calculated
25each year as a level percentage of the applicable employee
26payrolls over the years remaining to and including fiscal year

 

 

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12059 and shall be determined under the projected unit credit
2actuarial cost method.
3    (v) Beginning in fiscal year 2060, the minimum Board of
4Education contribution for each fiscal year shall be the amount
5needed to maintain the total assets of the Fund at 90% of the
6total actuarial liabilities of the Fund.
7    (vi) Notwithstanding any other provision of this
8subsection (b), for any fiscal year, the contribution to the
9Fund from the Board of Education shall not be required to be in
10excess of the amount calculated as needed to maintain the
11assets (or cause the assets to be) at the 90% level by the end
12of the fiscal year.
13    (vii) Any contribution by the State to or for the benefit
14of the Fund, including, without limitation, as referred to
15under Section 17-127, shall be a credit against any
16contribution required to be made by the Board of Education
17under this subsection (b).
18    (c) The Board shall determine the amount of Board of
19Education contributions required for each fiscal year on the
20basis of the actuarial tables and other assumptions adopted by
21the Board and the recommendations of the actuary, in order to
22meet the minimum contribution requirements of subsections (a)
23and (b). Annually, on or before February 28, the Board shall
24certify to the Board of Education the amount of the required
25Board of Education contribution for the coming fiscal year. The
26certification shall include a copy of the actuarial

 

 

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1recommendations upon which it is based. Beginning in fiscal
2year 2015, the Board shall submit vouchers for payment of Board
3of Education contributions on or as soon as possible after the
415th day of each month, in a total monthly amount of
5one-twelfth of the Board of Education's required annual
6contribution certified under this subsection.
7(Source: P.A. 96-889, eff. 4-14-10.)
 
8    (40 ILCS 5/17-129.1 new)
9    Sec. 17-129.1. Actions to enforce Board of Education
10contributions. If the Board of Education fails to transmit to
11the Fund contributions required of it under this Article or
12contributions collected by it from its participating employees
13for the purposes of this Article for more than 90 days after
14receipt of voucher, the Fund, after giving notice to the Board
15of Education, may certify to the State Comptroller the amounts
16of such delinquent payments and the Comptroller shall deduct
17the amounts so certified or any part thereof from any grants of
18State funds to the Board of Education and shall pay the amount
19so deducted to the Fund. If State funds from which such
20deductions may be made are not available, the Fund may certify
21to the City Treasurer of Chicago the amounts of such delinquent
22payments and the City Treasurer of Chicago shall deduct the
23amounts so certified or any part thereof from the tax levied by
24the Board of Education under Section 34-53 of the School Code
25and shall pay the amount so deducted directly to the Fund.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.