Rep. Elaine Nekritz

Filed: 4/20/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3484

2    AMENDMENT NO. ______. Amend House Bill 3484, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 3-125, 4-118, 5-168, 6-165, 7-172.1,
77-195.1, 7-210, 7-214, 8-173, and 11-169 and by adding Sections
89-184.5, 10-107.5, 12-149.5, 13-503.5, 17-127.5, and 22-104 as
9follows:
 
10    (40 ILCS 5/3-125)  (from Ch. 108 1/2, par. 3-125)
11    Sec. 3-125. Financing.
12    (a) The city council or the board of trustees of the
13municipality shall annually levy a tax upon all the taxable
14property of the municipality at the rate on the dollar which
15will produce an amount which, when added to the deductions from
16the salaries or wages of police officers, and revenues

 

 

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1available from other sources, will equal a sum sufficient to
2meet the annual requirements of the police pension fund. The
3annual requirements to be provided by such tax levy are equal
4to (1) the normal cost of the pension fund for the year
5involved, plus (2) an amount sufficient to bring the total
6assets of the pension fund up to 90% of the total actuarial
7liabilities of the pension fund by the end of municipal fiscal
8year 2040, as annually updated and determined by an enrolled
9actuary employed by the Illinois Department of Insurance or by
10an enrolled actuary retained by the pension fund or the
11municipality. In making these determinations, the required
12minimum employer contribution shall be calculated each year as
13a level percentage of payroll over the years remaining up to
14and including fiscal year 2040 and shall be determined under
15the projected unit credit actuarial cost method. The tax shall
16be levied and collected in the same manner as the general taxes
17of the municipality, and in addition to all other taxes now or
18hereafter authorized to be levied upon all property within the
19municipality, and shall be in addition to the amount authorized
20to be levied for general purposes as provided by Section 8-3-1
21of the Illinois Municipal Code, approved May 29, 1961, as
22amended. The tax shall be forwarded directly to the treasurer
23of the board within 30 business days after receipt by the
24county.
25    (b) For purposes of determining the required employer
26contribution to a pension fund, the value of the pension fund's

 

 

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1assets shall be equal to the actuarial value of the pension
2fund's assets, which shall be calculated as follows:
3        (1) On March 30, 2011, the actuarial value of a pension
4    fund's assets shall be equal to the market value of the
5    assets as of that date.
6        (2) In determining the actuarial value of the System's
7    assets for fiscal years after March 30, 2011, any actuarial
8    gains or losses from investment return incurred in a fiscal
9    year shall be recognized in equal annual amounts over the
10    5-year period following that fiscal year.
11    (c) If a participating municipality fails to transmit to
12the fund contributions required of it under this Article for
13more than 90 days after the payment of those contributions is
14due, the fund may, after giving notice to the municipality,
15certify to the State Comptroller the amounts of the delinquent
16payments in accordance with any applicable rules of the
17Comptroller, and the Comptroller must, beginning in fiscal year
182016, deduct and remit to deposit into the fund the certified
19amounts or a portion of those amounts from the following
20proportions of payments grants of State funds to the
21municipality:
22        (1) in fiscal year 2016, one-third of the total amount
23    of any payments grants of State funds to the municipality;
24        (2) in fiscal year 2017, two-thirds of the total amount
25    of any payments grants of State funds to the municipality;
26    and

 

 

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1        (3) in fiscal year 2018 and each fiscal year
2    thereafter, the total amount of any payments grants of
3    State funds to the municipality.
4    The State Comptroller may not deduct from any payments
5grants of State funds to the municipality more than the amount
6of delinquent payments certified to the State Comptroller by
7the fund.
8    (d) The police pension fund shall consist of the following
9moneys which shall be set apart by the treasurer of the
10municipality:
11        (1) All moneys derived from the taxes levied hereunder;
12        (2) Contributions by police officers under Section
13    3-125.1;
14        (3) All moneys accumulated by the municipality under
15    any previous legislation establishing a fund for the
16    benefit of disabled or retired police officers;
17        (4) Donations, gifts or other transfers authorized by
18    this Article.
19    (e) The Commission on Government Forecasting and
20Accountability shall conduct a study of all funds established
21under this Article and shall report its findings to the General
22Assembly on or before January 1, 2013. To the fullest extent
23possible, the study shall include, but not be limited to, the
24following:
25        (1) fund balances;
26        (2) historical employer contribution rates for each

 

 

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1    fund;
2        (3) the actuarial formulas used as a basis for employer
3    contributions, including the actual assumed rate of return
4    for each year, for each fund;
5        (4) available contribution funding sources;
6        (5) the impact of any revenue limitations caused by
7    PTELL and employer home rule or non-home rule status; and
8        (6) existing statutory funding compliance procedures
9    and funding enforcement mechanisms for all municipal
10    pension funds.
11(Source: P.A. 95-530, eff. 8-28-07; 96-1495, eff. 1-1-11.)
 
12    (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
13    Sec. 4-118. Financing.
14    (a) The city council or the board of trustees of the
15municipality shall annually levy a tax upon all the taxable
16property of the municipality at the rate on the dollar which
17will produce an amount which, when added to the deductions from
18the salaries or wages of firefighters and revenues available
19from other sources, will equal a sum sufficient to meet the
20annual actuarial requirements of the pension fund, as
21determined by an enrolled actuary employed by the Illinois
22Department of Insurance or by an enrolled actuary retained by
23the pension fund or municipality. For the purposes of this
24Section, the annual actuarial requirements of the pension fund
25are equal to (1) the normal cost of the pension fund, or 17.5%

 

 

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1of the salaries and wages to be paid to firefighters for the
2year involved, whichever is greater, plus (2) an annual amount
3sufficient to bring the total assets of the pension fund up to
490% of the total actuarial liabilities of the pension fund by
5the end of municipal fiscal year 2040, as annually updated and
6determined by an enrolled actuary employed by the Illinois
7Department of Insurance or by an enrolled actuary retained by
8the pension fund or the municipality. In making these
9determinations, the required minimum employer contribution
10shall be calculated each year as a level percentage of payroll
11over the years remaining up to and including fiscal year 2040
12and shall be determined under the projected unit credit
13actuarial cost method. The amount to be applied towards the
14amortization of the unfunded accrued liability in any year
15shall not be less than the annual amount required to amortize
16the unfunded accrued liability, including interest, as a level
17percentage of payroll over the number of years remaining in the
1840 year amortization period.
19    (a-5) For purposes of determining the required employer
20contribution to a pension fund, the value of the pension fund's
21assets shall be equal to the actuarial value of the pension
22fund's assets, which shall be calculated as follows:
23        (1) On March 30, 2011, the actuarial value of a pension
24    fund's assets shall be equal to the market value of the
25    assets as of that date.
26        (2) In determining the actuarial value of the pension

 

 

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1    fund's assets for fiscal years after March 30, 2011, any
2    actuarial gains or losses from investment return incurred
3    in a fiscal year shall be recognized in equal annual
4    amounts over the 5-year period following that fiscal year.
5    (b) The tax shall be levied and collected in the same
6manner as the general taxes of the municipality, and shall be
7in addition to all other taxes now or hereafter authorized to
8be levied upon all property within the municipality, and in
9addition to the amount authorized to be levied for general
10purposes, under Section 8-3-1 of the Illinois Municipal Code or
11under Section 14 of the Fire Protection District Act. The tax
12shall be forwarded directly to the treasurer of the board
13within 30 business days of receipt by the county (or, in the
14case of amounts added to the tax levy under subsection (f),
15used by the municipality to pay the employer contributions
16required under subsection (b-1) of Section 15-155 of this
17Code).
18    (b-5) If a participating municipality fails to transmit to
19the fund contributions required of it under this Article for
20more than 90 days after the payment of those contributions is
21due, the fund may, after giving notice to the municipality,
22certify to the State Comptroller the amounts of the delinquent
23payments in accordance with any applicable rules of the
24Comptroller, and the Comptroller must, beginning in fiscal year
252016, deduct and remit to deposit into the fund the certified
26amounts or a portion of those amounts from the following

 

 

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1proportions of payments grants of State funds to the
2municipality:
3        (1) in fiscal year 2016, one-third of the total amount
4    of any payments grants of State funds to the municipality;
5        (2) in fiscal year 2017, two-thirds of the total amount
6    of any payments grants of State funds to the municipality;
7    and
8        (3) in fiscal year 2018 and each fiscal year
9    thereafter, the total amount of any payments grants of
10    State funds to the municipality.
11    The State Comptroller may not deduct from any payments
12grants of State funds to the municipality more than the amount
13of delinquent payments certified to the State Comptroller by
14the fund.
15    (c) The board shall make available to the membership and
16the general public for inspection and copying at reasonable
17times the most recent Actuarial Valuation Balance Sheet and Tax
18Levy Requirement issued to the fund by the Department of
19Insurance.
20    (d) The firefighters' pension fund shall consist of the
21following moneys which shall be set apart by the treasurer of
22the municipality: (1) all moneys derived from the taxes levied
23hereunder; (2) contributions by firefighters as provided under
24Section 4-118.1; (3) all rewards in money, fees, gifts, and
25emoluments that may be paid or given for or on account of
26extraordinary service by the fire department or any member

 

 

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1thereof, except when allowed to be retained by competitive
2awards; and (4) any money, real estate or personal property
3received by the board.
4    (e) For the purposes of this Section, "enrolled actuary"
5means an actuary: (1) who is a member of the Society of
6Actuaries or the American Academy of Actuaries; and (2) who is
7enrolled under Subtitle C of Title III of the Employee
8Retirement Income Security Act of 1974, or who has been engaged
9in providing actuarial services to one or more public
10retirement systems for a period of at least 3 years as of July
111, 1983.
12    (f) The corporate authorities of a municipality that
13employs a person who is described in subdivision (d) of Section
144-106 may add to the tax levy otherwise provided for in this
15Section an amount equal to the projected cost of the employer
16contributions required to be paid by the municipality to the
17State Universities Retirement System under subsection (b-1) of
18Section 15-155 of this Code.
19    (g) The Commission on Government Forecasting and
20Accountability shall conduct a study of all funds established
21under this Article and shall report its findings to the General
22Assembly on or before January 1, 2013. To the fullest extent
23possible, the study shall include, but not be limited to, the
24following:
25        (1) fund balances;
26        (2) historical employer contribution rates for each

 

 

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1    fund;
2        (3) the actuarial formulas used as a basis for employer
3    contributions, including the actual assumed rate of return
4    for each year, for each fund;
5        (4) available contribution funding sources;
6        (5) the impact of any revenue limitations caused by
7    PTELL and employer home rule or non-home rule status; and
8        (6) existing statutory funding compliance procedures
9    and funding enforcement mechanisms for all municipal
10    pension funds.
11(Source: P.A. 96-1495, eff. 1-1-11.)
 
12    (40 ILCS 5/5-168)   (from Ch. 108 1/2, par. 5-168)
13    Sec. 5-168. Financing.
14    (a) Except as expressly provided in this Section, the city
15shall levy a tax annually upon all taxable property therein for
16the purpose of providing revenue for the fund.
17    The tax shall be at a rate that will produce a sum which,
18when added to the amounts deducted from the policemen's
19salaries and the amounts deposited in accordance with
20subsection (g), is sufficient for the purposes of the fund.
21    For the years 1968 and 1969, the city council shall levy a
22tax annually at a rate on the dollar of the assessed valuation
23of all taxable property that will produce, when extended, not
24to exceed $9,700,000. Beginning with the year 1970 and through
252014, the city council shall levy a tax annually at a rate on

 

 

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1the dollar of the assessed valuation of all taxable property
2that will produce when extended an amount not to exceed the
3total amount of contributions by the policemen to the Fund made
4in the calendar year 2 years before the year for which the
5applicable annual tax is levied, multiplied by 1.40 for the tax
6levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
71.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
8by 2.00 for 1982 and for each year through 2014. Beginning in
92015, the city council shall levy a tax annually at a rate on
10the dollar of the assessed valuation of all taxable property
11that will produce when extended an annual amount that is equal
12to (1) the normal cost to the Fund, plus (2) an annual amount
13sufficient to bring the total assets of the Fund up to 90% of
14the total actuarial liabilities of the Fund by the end of
15fiscal year 2040, as annually updated and determined by an
16enrolled actuary employed by the Illinois Department of
17Insurance or by an enrolled actuary retained by the Fund or the
18city. In making these determinations, the required minimum
19employer contribution shall be calculated each year as a level
20percentage of payroll over the years remaining up to and
21including fiscal year 2040 and shall be determined under the
22projected unit credit actuarial cost method. For the purposes
23of this subsection (a), contributions by the policeman to the
24Fund shall not include payments made by a policeman to
25establish credit under Section 5-214.2 of this Code.
26    (a-5) For purposes of determining the required employer

 

 

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1contribution to the Fund, the value of the Fund's assets shall
2be equal to the actuarial value of the Fund's assets, which
3shall be calculated as follows:
4        (1) On March 30, 2011, the actuarial value of the
5    Fund's assets shall be equal to the market value of the
6    assets as of that date.
7        (2) In determining the actuarial value of the Fund's
8    assets for fiscal years after March 30, 2011, any actuarial
9    gains or losses from investment return incurred in a fiscal
10    year shall be recognized in equal annual amounts over the
11    5-year period following that fiscal year.
12    (a-7) If the city fails to transmit to the Fund
13contributions required of it under this Article for more than
1490 days after the payment of those contributions is due, the
15Fund may, after giving notice to the city, certify to the State
16Comptroller the amounts of the delinquent payments in
17accordance with any applicable rules of the Comptroller, and
18the Comptroller must, beginning in fiscal year 2016, deduct and
19remit to deposit into the Fund the certified amounts or a
20portion of those amounts from the following proportions of
21payments grants of State funds to the city:
22        (1) in fiscal year 2016, one-third of the total amount
23    of any payments grants of State funds to the city;
24        (2) in fiscal year 2017, two-thirds of the total amount
25    of any payments grants of State funds to the city; and
26        (3) in fiscal year 2018 and each fiscal year

 

 

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

 

 

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1of the amount of the required city contributions; and shall
2certify the results thereof to the city council.
3    As soon as any revenue derived from the tax is collected it
4shall be paid to the city treasurer of the city and shall be
5held by him for the benefit of the fund in accordance with this
6Article.
7    (d) If the funds available are insufficient during any year
8to meet the requirements of this Article, the city may issue
9tax anticipation warrants against the tax levy for the current
10fiscal year.
11    (e) The various sums, including interest, to be contributed
12by the city, shall be taken from the revenue derived from such
13tax or otherwise as expressly provided in this Section. Any
14moneys of the city derived from any source other than the tax
15herein authorized shall not be used for any purpose of the fund
16nor the cost of administration thereof, unless applied to make
17the deposit expressly authorized in this Section or the
18additional city contributions required under subsection (h).
19    (f) If it is not possible or practicable for the city to
20make its contributions at the time that salary deductions are
21made, the city shall make such contributions as soon as
22possible thereafter, with interest thereon to the time it is
23made.
24    (g) In lieu of levying all or a portion of the tax required
25under this Section in any year, the city may deposit with the
26city treasurer no later than March 1 of that year for the

 

 

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1benefit of the fund, to be held in accordance with this
2Article, an amount that, together with the taxes levied under
3this Section for that year, is not less than the amount of the
4city contributions for that year as certified by the board to
5the city council. The deposit may be derived from any source
6legally available for that purpose, including, but not limited
7to, the proceeds of city borrowings. The making of a deposit
8shall satisfy fully the requirements of this Section for that
9year to the extent of the amounts so deposited. Amounts
10deposited under this subsection may be used by the fund for any
11of the purposes for which the proceeds of the tax levied under
12this Section may be used, including the payment of any amount
13that is otherwise required by this Article to be paid from the
14proceeds of that tax.
15    (h) In addition to the contributions required under the
16other provisions of this Article, by November 1 of the
17following specified years, the city shall deposit with the city
18treasurer for the benefit of the fund, to be held and used in
19accordance with this Article, the following specified amounts:
20$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
21$5,040,000 in 2002; and $4,620,000 in 2003.
22    The additional city contributions required under this
23subsection are intended to decrease the unfunded liability of
24the fund and shall not decrease the amount of the city
25contributions required under the other provisions of this
26Article. The additional city contributions made under this

 

 

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

 

 

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1produce when extended an annual amount that is equal to (1) the
2normal cost to the Fund, plus (2) an annual amount sufficient
3to bring the total assets of the Fund up to 90% of the total
4actuarial liabilities of the Fund by the end of fiscal year
52040, as annually updated and determined by an enrolled actuary
6employed by the Illinois Department of Insurance or by an
7enrolled actuary retained by the Fund or the city. In making
8these determinations, the required minimum employer
9contribution shall be calculated each year as a level
10percentage of payroll over the years remaining up to and
11including fiscal year 2040 and shall be determined under the
12projected unit credit actuarial cost method.
13    To provide revenue for the ordinary death benefit
14established by Section 6-150 of this Article, in addition to
15the contributions by the firemen for this purpose, the city
16council shall for the year 1962 and each year thereafter
17annually levy a tax, which shall be in addition to and
18exclusive of the taxes authorized to be levied under the
19foregoing provisions of this Section, upon all taxable property
20in the city, as equalized or assessed by the Department of
21Revenue, at such rate per cent of the value of such property as
22shall be sufficient to produce for each year the sum of
23$142,000.
24    The amounts produced by the taxes levied annually, together
25with the deposit expressly authorized in this Section, shall be
26sufficient, when added to the amounts deducted from the

 

 

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1salaries of firemen and applied to the fund, to provide for the
2purposes of the fund.
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 in
20accordance with any applicable rules of the Comptroller, and
21the Comptroller must, beginning in fiscal year 2016, deduct and
22remit to deposit into the Fund the certified amounts or a
23portion of those amounts from the following proportions of
24payments grants of State funds to the city:
25        (1) in fiscal year 2016, one-third of the total amount
26    of any payments 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 payments 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 payments grants of
5    State funds to the city.
6    The State Comptroller may not deduct from any payments
7grants of State funds to the city more than the amount of
8delinquent payments certified to the State Comptroller by the
9Fund.
10    (b) The taxes shall be levied and collected in like manner
11with the general taxes of the city, and shall be in addition to
12all other taxes which the city may levy upon all taxable
13property therein and shall be exclusive of and in addition to
14the amount of tax the city may levy for general purposes under
15Section 8-3-1 of the Illinois Municipal Code, approved May 29,
161961, as amended, or under any other law or laws which may
17limit the amount of tax which the city may levy for general
18purposes.
19    (c) The amounts of the taxes to be levied in each year
20shall be certified to the city council by the board.
21    (d) As soon as any revenue derived from such taxes is
22collected, it shall be paid to the city treasurer and held for
23the benefit of the fund, and all such revenue shall be paid
24into the fund in accordance with the provisions of this
25Article.
26    (e) If the funds available are insufficient during any year

 

 

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

 

 

09900HB3484ham002- 21 -LRB099 09762 EFG 34505 a

1shall satisfy fully the requirements of this Section for that
2year to the extent of the amounts so deposited. Amounts
3deposited under this subsection may be used by the fund for any
4of the purposes for which the proceeds of the taxes levied
5under this Section may be used, including the payment of any
6amount that is otherwise required by this Article to be paid
7from the proceeds of those taxes.
8    (h) In addition to the contributions required under the
9other provisions of this Article, by November 1 of the
10following specified years, the city shall deposit with the city
11treasurer for the benefit of the fund, to be held and used in
12accordance with this Article, the following specified amounts:
13$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
14$5,040,000 in 2002; and $4,620,000 in 2003.
15    The additional city contributions required under this
16subsection are intended to decrease the unfunded liability of
17the fund and shall not decrease the amount of the city
18contributions required under the other provisions of this
19Article. The additional city contributions made under this
20subsection may be used by the fund for any of its lawful
21purposes.
22(Source: P.A. 96-1495, eff. 1-1-11.)
 
23    (40 ILCS 5/7-172.1)  (from Ch. 108 1/2, par. 7-172.1)
24    Sec. 7-172.1. Actions to enforce payments by
25municipalities and instrumentalities.

 

 

09900HB3484ham002- 22 -LRB099 09762 EFG 34505 a

1    (a) If any participating municipality or participating
2instrumentality fails to transmit to the Fund contributions
3required of it under this Article or contributions collected by
4it from its participating employees for the purposes of this
5Article for more than 90 days after the payment of such
6contributions is due, the Fund, after giving notice to such
7municipality or instrumentality, may certify to the State
8Comptroller the amounts of such delinquent payments in
9accordance with any applicable rules of the Comptroller, and
10the Comptroller shall deduct the amounts so certified or any
11part thereof from any payments grants of State funds to the
12municipality or instrumentality involved and shall remit pay
13the amount so deducted to the Fund. If State funds from which
14such deductions may be made are not available, the Fund may
15proceed against the municipality or instrumentality to recover
16the amounts of such delinquent payments in the appropriate
17circuit court.
18    (b) If any participating municipality fails to transmit to
19the Fund contributions required of it under this Article or
20contributions collected by it from its participating employees
21for the purposes of this Article for more than 90 days after
22the payment of such contributions is due, the Fund, after
23giving notice to such municipality, may certify the fact of
24such delinquent payment to the county treasurer of the county
25in which such municipality is located, who shall thereafter
26remit the amounts collected from the tax levied by the

 

 

09900HB3484ham002- 23 -LRB099 09762 EFG 34505 a

1municipality under Section 7-171 directly to the Fund.
2    (c) If reports furnished to the Fund by the municipality or
3instrumentality involved are inadequate for the computation of
4the amounts of such delinquent payments, the Fund may provide
5for such audit of the records of the municipality or
6instrumentality as may be required to establish the amounts of
7such delinquent payments. The municipality or instrumentality
8shall make its records available to the Fund for the purpose of
9such audit. The cost of such audit shall be added to the amount
10of the delinquent payments and shall be recovered by the Fund
11from the municipality or instrumentality at the same time and
12in the same manner as the delinquent payments are recovered.
13(Source: P.A. 86-273.)
 
14    (40 ILCS 5/7-195.1)  (from Ch. 108 1/2, par. 7-195.1)
15    Sec. 7-195.1. To establish and maintain a revolving
16account. To establish and maintain a revolving account in a
17bank or savings and loan association, approved by the State
18Treasurer as a State depositary and having capital funds,
19represented by capital, surplus, and undivided profits, of at
20least 5 million dollars, for the purpose of making payments of
21annuities, benefits, and administrative expenses and payments
22to the State Agency provided in Section 7-170. All funds
23deposited in such account shall be placed in the name of the
24Fund fund and shall be withdrawn only by a check or draft upon
25the bank or savings and loan association signed by the

 

 

09900HB3484ham002- 24 -LRB099 09762 EFG 34505 a

1president of the board or the executive director, as the board
2may direct. In case the president or executive director, whose
3signature appears upon any check or draft, after attaching his
4signature ceases to hold office before the delivery thereof to
5the payee, his signature nevertheless shall be valid and
6sufficient for all purposes with the same effect as if he had
7remained in office until delivery thereof. The revolving
8account shall be created by resolution of the board. The State
9Comptroller, upon receipt of a copy of such resolution and a
10voucher designating the payment of $300,000 into the revolving
11account, shall draw his warrant on the State Treasurer for
12payment of same to the Fund for deposit in the revolving
13account. The monies in the revolving account shall be held and
14expenditures shall be made by the Fund for the purposes herein
15set forth. The Fund shall reimburse the revolving account for
16expenditures for such purposes and the Comptroller, upon
17receipt of vouchers signed as provided in Section 7-210 and
18including a statement of expenditures made from the revolving
19account, shall draw his warrant on the State Treasurer for the
20payment of the amount of such expenditures to the Fund for
21deposit in the revolving account.
22    No bank or savings and loan association shall receive
23investment funds as permitted by this Section, unless it has
24complied with the requirements established pursuant to Section
256 of the Public Funds Investment Act "An Act relating to
26certain investments of public funds by public agencies",

 

 

09900HB3484ham002- 25 -LRB099 09762 EFG 34505 a

1approved July 23, 1943, as now or hereafter amended. The
2limitations set forth in such Section 6 shall be applicable
3only at the time of investment and shall not require the
4liquidation of any investment at any time.
5(Source: P.A. 83-541.)
 
6    (40 ILCS 5/7-210)  (from Ch. 108 1/2, par. 7-210)
7    Sec. 7-210. Funds.
8    (a) All money received by the board shall immediately be
9deposited with the custodian State Treasurer for the account of
10the Fund fund, or in the case of funds received under Section
117-199.1, in a separate account maintained for that purpose. All
12payments from the accounts of the Fund shall be made by the
13custodian only, and only by a check or draft signed by the
14president of the board or the executive director, as the board
15may direct. Such checks and drafts All disbursements of funds
16held by the State Treasurer shall be made only upon warrants of
17the State Comptroller drawn upon the Treasurer as custodian of
18this fund upon vouchers signed by the person or persons
19designated for such purpose by resolution of the board. The
20Comptroller is authorized to draw such warrants upon vouchers
21so signed, including warrants payable to the Fund for deposit
22in a revolving account authorized by Section 7-195.1. The
23Treasurer shall accept all warrants so signed and shall be
24released from liability for all payments made thereon. Vouchers
25shall be drawn only upon proper authorization by the board as

 

 

09900HB3484ham002- 26 -LRB099 09762 EFG 34505 a

1properly recorded in the official minute books of the meetings
2of the board.
3    (b) (Blank). All securities of the fund when received shall
4be deposited with the State Treasurer who shall provide
5adequate safe deposit facilities for their preservation and
6have custody of them.
7    (c) The assets of the Fund fund shall be invested as one
8fund, and no particular person, municipality, or
9instrumentality thereof or participating instrumentality shall
10have any right in any specific security or in any item of cash
11other than an undivided interest in the whole.
12    (d) Except as provided in subsection (d-5), whenever any
13employees of a municipality or participating instrumentality
14have been or shall be excluded from participation in this Fund
15fund by virtue of the application of paragraph b of Section
167-109 (2), the board shall issue a check or draft voucher
17authorizing the Comptroller to draw his warrant upon the
18Treasurer as custodian of this fund in an amount equal to the
19accumulated contributions of such employees. Such check or
20draft warrant shall be drawn in favor of the appropriate fund
21of the pension or retirement fund in which such employees have
22or shall become participants. Such transfer shall terminate any
23further rights of such employees under this Fund fund.
24    (d-5) Upon creation of a newly established Article 3 police
25pension fund by referendum under Section 3-145 or by census
26under Section 3-105, the following amounts shall be transferred

 

 

09900HB3484ham002- 27 -LRB099 09762 EFG 34505 a

1from this Fund to the new police pension fund, within 30 days
2after an application therefor is received from the new pension
3fund:
4        (1) the amounts actually contributed to this Fund as
5    employee contributions by or on behalf of the police
6    officers transferring to the new pension fund for their
7    service as police officers of the municipality that is
8    establishing the new pension fund, plus interest on those
9    amounts at the rate of 6% per year, compounded annually,
10    from the date of contribution to the date of transfer to
11    the new pension fund, and
12        (2) an amount representing employer contributions,
13    equal to the total amount determined under item (1).
14This transfer terminates any further rights of such police
15officers in this Fund arising out of their service as police
16officers of the municipality that is establishing the new
17pension fund.
18    (e) If a participating instrumentality terminates
19participation because it fails to meet the requirements of
20Section 7-108, it shall pay to the Fund fund the amount equal
21to any net debit balance in its municipality reserve account
22and account receivable. Its successors, and assigns and
23transferees of its assets shall be obligated to make this
24payment to the extent of the value of assets transferred to
25them. The Fund fund shall pay an amount equal to any net credit
26balance to the participating instrumentality, its successors

 

 

09900HB3484ham002- 28 -LRB099 09762 EFG 34505 a

1or assigns. Any remaining net debit or credit balance not
2collectible or payable shall be transferred to the terminated
3municipality reserve account. The Fund fund shall pay to each
4employee of the participating instrumentality an amount equal
5to his credits in the employee reserves. The employees shall
6have no further rights to any benefits from the Fund fund,
7except that annuities awarded prior to the date of termination
8shall continue to be paid.
9(Source: P.A. 98-729, eff. 7-26-14.)
 
10    (40 ILCS 5/7-214)  (from Ch. 108 1/2, par. 7-214)
11    Sec. 7-214. Custodian State treasurer. The Board shall
12appoint one or more custodians to receive and hold the assets
13of the Fund on such terms as the Board may agree. The State
14Treasurer shall be the treasurer of the fund and shall be
15responsible for the proper handling of all the assets of the
16fund in accordance with this Article. He shall furnish a
17corporate surety bond of such amount as the board designates,
18which bond shall indemnify the board against any loss which may
19result from any action or failure to act by the treasurer or
20any of his agents. All charges incidental to the procuring and
21giving of such bond shall be paid by the board.
22(Source: Laws 1963, p. 161.)
 
23    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
24    Sec. 8-173. Financing; tax levy.

 

 

09900HB3484ham002- 29 -LRB099 09762 EFG 34505 a

1    (a) Except as provided in subsection (f) of this Section,
2the city council of the city shall levy a tax annually upon all
3taxable property in the city at a rate that will produce a sum
4which, when added to the amounts deducted from the salaries of
5the employees or otherwise contributed by them and the amounts
6deposited under subsection (f), will be sufficient for the
7requirements of this Article, but which when extended will
8produce an amount not to exceed the greater of the following:
9(a) the sum obtained by the levy of a tax of .1093% of the
10value, as equalized or assessed by the Department of Revenue,
11of all taxable property within such city, or (b) the sum of
12$12,000,000. However any city in which a Fund has been
13established and in operation under this Article for more than 3
14years prior to 1970 shall levy for the year 1970 a tax at a rate
15on the dollar of assessed valuation of all taxable property
16that will produce, when extended, an amount not to exceed 1.2
17times the total amount of contributions made by employees to
18the Fund for annuity purposes in the calendar year 1968, and,
19for the year 1971 and 1972 such levy that will produce, when
20extended, an amount not to exceed 1.3 times the total amount of
21contributions made by employees to the Fund for annuity
22purposes in the calendar years 1969 and 1970, respectively; and
23for the year 1973 an amount not to exceed 1.365 times such
24total amount of contributions made by employees for annuity
25purposes in the calendar year 1971; and for the year 1974 an
26amount not to exceed 1.430 times such total amount of

 

 

09900HB3484ham002- 30 -LRB099 09762 EFG 34505 a

1contributions made by employees for annuity purposes in the
2calendar year 1972; and for the year 1975 an amount not to
3exceed 1.495 times such total amount of contributions made by
4employees for annuity purposes in the calendar year 1973; and
5for the year 1976 an amount not to exceed 1.560 times such
6total amount of contributions made by employees for annuity
7purposes in the calendar year 1974; and for the year 1977 an
8amount not to exceed 1.625 times such total amount of
9contributions made by employees for annuity purposes in the
10calendar year 1975; and for the year 1978 and each year
11thereafter through levy year 2014, such levy as will produce,
12when extended, an amount not to exceed the total amount of
13contributions made by or on behalf of employees to the Fund for
14annuity purposes in the calendar year 2 years prior to the year
15for which the annual applicable tax is levied, multiplied by
161.690 for the years 1978 through 1998 and by 1.250 for the year
171999 and for each year thereafter through levy year 2014.
18Beginning in levy year 2015, and in each year thereafter, the
19levy shall not exceed the amount of the city's total required
20contribution to the Fund for the next payment year, as
21determined under subsection (a-5). For the purposes of this
22Section, the payment year is the year immediately following the
23levy year.
24    The tax shall be levied and collected in like manner with
25the general taxes of the city, and shall be exclusive of and in
26addition to the amount of tax the city is now or may hereafter

 

 

09900HB3484ham002- 31 -LRB099 09762 EFG 34505 a

1be authorized to levy for general purposes under any laws which
2may limit the amount of tax which the city may levy for general
3purposes. The county clerk of the county in which the city is
4located, in reducing tax levies under the provisions of any Act
5concerning the levy and extension of taxes, shall not consider
6the tax herein provided for as a part of the general tax levy
7for city purposes, and shall not include the same within any
8limitation of the percent of the assessed valuation upon which
9taxes are required to be extended for such city.
10    Revenues derived from such tax shall be paid to the city
11treasurer of the city as collected and held by the city
12treasurer for the benefit of the fund.
13    If the payments on account of taxes are insufficient during
14any year to meet the requirements of this Article, the city may
15issue tax anticipation warrants against the current tax levy.
16    The city may continue to use other lawfully available funds
17in lieu of all or part of the levy, as provided under
18subsection (f) of this Section.
19    (a-5) Beginning in payment year 2016, the city's required
20annual contribution to the Fund shall be the lesser of:
21        (i) (I) for payment years 2016 through 2055, the annual
22    amount determined by the Fund to be equal to the greater of
23    $0, or the sum of (1) the city's portion of the projected
24    normal cost for that fiscal year, plus (2) an amount
25    determined on a level percentage of applicable employee
26    payroll basis (reflecting any limits on individual

 

 

09900HB3484ham002- 32 -LRB099 09762 EFG 34505 a

1    participants' pay that apply for benefit and contribution
2    purposes under this plan) that is sufficient to bring the
3    total actuarial assets of the Fund up to 90% of the total
4    actuarial liabilities of the Fund by the end of 2055. (II)
5    For payment years after 2055, the annual amount determined
6    by the Fund to be equal to the amount, if any, needed to
7    bring the total actuarial assets of the Fund up to 90% of
8    the total actuarial liabilities of the Fund as of the end
9    of the year. In making the determinations under both (I)
10    and (II), the actuarial calculations shall be determined
11    under the entry age normal actuarial cost method, and any
12    actuarial gains or losses from investment return incurred
13    in a fiscal year shall be recognized in equal annual
14    amounts over the 5-year period following the fiscal year;
15    or
16        (ii) for payment year 2016, 1.85 times the total amount
17    of contributions made by or on behalf of employees to the
18    Fund for annuity purposes in the calendar year 2013; for
19    payment year 2017, 2.15 times the total amount of
20    contributions made by or on behalf of employees to the Fund
21    for annuity purposes in the calendar year 2014; for payment
22    year 2018, 2.45 times the total amount of contributions
23    made by or on behalf of employees to the Fund for annuity
24    purposes in the calendar year 2015; for payment year 2019,
25    2.75 times the total amount of contributions made by or on
26    behalf of employees to the Fund for annuity purposes in the

 

 

09900HB3484ham002- 33 -LRB099 09762 EFG 34505 a

1    calendar year 2016; for payment year 2020, 3.05 times the
2    total amount of contributions made by or on behalf of
3    employees to the Fund for annuity purposes in the calendar
4    year 2017.
5However, beginning in the earlier of payment year 2021 or the
6first payment year in which the annual contribution amount
7calculated under subdivision (i) is less than the contribution
8amount calculated under subdivision (ii), and in each year
9thereafter, the city's required annual contribution to the Fund
10shall be determined under subdivision (i).
11    The city's required annual contribution to the Fund may be
12paid with any available funds and shall be paid by the city to
13the city treasurer. The city treasurer shall collect and hold
14those funds for the benefit of the Fund.
15    (a-10) If the city fails to transmit to the Fund
16contributions required of it under this Article by December
1731st of the year in which such contributions are due, the Fund
18may, after giving notice to the city, certify to the State
19Comptroller the amounts of the delinquent payments in
20accordance with any applicable rules of the Comptroller, and
21the Comptroller must, beginning in payment year 2016, deduct
22and remit to deposit into the Fund the certified amounts or a
23portion of those amounts from the following proportions of
24payments grants of State funds to the city:
25        (1) in payment year 2016, one-third of the total amount
26    of any payments grants of State funds to the city;

 

 

09900HB3484ham002- 34 -LRB099 09762 EFG 34505 a

1        (2) in payment year 2017, two-thirds of the total
2    amount of any payments grants of State funds to the city;
3    and
4        (3) in payment year 2018 and each payment year
5    thereafter, the total amount of any payments grants of
6    State funds to the city.
7    The State Comptroller may not deduct from any payments
8grants of State funds to the city more than the amount of
9delinquent payments certified to the State Comptroller by the
10Fund.
11    (b) On or before July 1, annually, the board shall certify
12to the city council the annual amounts required under this
13Article, for which the tax herein provided may be levied for
14the following year. The board shall compute the amounts
15necessary to be credited to the reserves established and
16maintained as herein provided, and shall make an annual
17determination of the amount of the required city contributions,
18and certify the results thereof to the city council.
19    (c) In respect to employees of the city who are transferred
20to the employment of a park district by virtue of the "Exchange
21of Functions Act of 1957", the corporate authorities of the
22park district shall annually levy a tax upon all the taxable
23property in the park district at such rate per cent of the
24value of such property, as equalized or assessed by the
25Department of Revenue, as shall be sufficient, when added to
26the amounts deducted from their salaries and otherwise

 

 

09900HB3484ham002- 35 -LRB099 09762 EFG 34505 a

1contributed by them to provide the benefits to which they and
2their dependents and beneficiaries are entitled under this
3Article. The city shall not levy a tax hereunder in respect to
4such employees.
5    The tax so levied by the park district shall be in addition
6to and exclusive of all other taxes authorized to be levied by
7the park district for corporate, annuity fund, or other
8purposes. The county clerk of the county in which the park
9district is located, in reducing any tax levied under the
10provisions of any act concerning the levy and extension of
11taxes shall not consider such tax as part of the general tax
12levy for park purposes, and shall not include the same in any
13limitation of the per cent of the assessed valuation upon which
14taxes are required to be extended for the park district. The
15proceeds of the tax levied by the park district, upon receipt
16by the district, shall be immediately paid over to the city
17treasurer of the city for the uses and purposes of the fund.
18    The various sums to be contributed by the city and park
19district and allocated for the purposes of this Article, and
20any interest to be contributed by the city, shall be derived
21from the revenue from the taxes authorized in this Section or
22otherwise as expressly provided in this Section.
23    If it is not possible or practicable for the city to make
24contributions for age and service annuity and widow's annuity
25at the same time that employee contributions are made for such
26purposes, such city contributions shall be construed to be due

 

 

09900HB3484ham002- 36 -LRB099 09762 EFG 34505 a

1and payable as of the end of the fiscal year for which the tax
2is levied and shall accrue thereafter with interest at the
3effective rate until paid.
4    (d) With respect to employees whose wages are funded as
5participants under the Comprehensive Employment and Training
6Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
793-567, 88 Stat. 1845), hereinafter referred to as CETA,
8subsequent to October 1, 1978, and in instances where the board
9has elected to establish a manpower program reserve, the board
10shall compute the amounts necessary to be credited to the
11manpower program reserves established and maintained as herein
12provided, and shall make a periodic determination of the amount
13of required contributions from the City to the reserve to be
14reimbursed by the federal government in accordance with rules
15and regulations established by the Secretary of the United
16States Department of Labor or his designee, and certify the
17results thereof to the City Council. Any such amounts shall
18become a credit to the City and will be used to reduce the
19amount which the City would otherwise contribute during
20succeeding years for all employees.
21    (e) In lieu of establishing a manpower program reserve with
22respect to employees whose wages are funded as participants
23under the Comprehensive Employment and Training Act of 1973, as
24authorized by subsection (d), the board may elect to establish
25a special municipality contribution rate for all such
26employees. If this option is elected, the City shall contribute

 

 

09900HB3484ham002- 37 -LRB099 09762 EFG 34505 a

1to the Fund from federal funds provided under the Comprehensive
2Employment and Training Act program at the special rate so
3established and such contributions shall become a credit to the
4City and be used to reduce the amount which the City would
5otherwise contribute during succeeding years for all
6employees.
7    (f) In lieu of levying all or a portion of the tax required
8under this Section in any year, the city may deposit with the
9city treasurer no later than March 1 of that year for the
10benefit of the fund, to be held in accordance with this
11Article, an amount that, together with the taxes levied under
12this Section for that year, is not less than the amount of the
13city contributions for that year as certified by the board to
14the city council. The deposit may be derived from any source
15legally available for that purpose, including, but not limited
16to, the proceeds of city borrowings. The making of a deposit
17shall satisfy fully the requirements of this Section for that
18year to the extent of the amounts so deposited. Amounts
19deposited under this subsection may be used by the fund for any
20of the purposes for which the proceeds of the tax levied by the
21city under this Section may be used, including the payment of
22any amount that is otherwise required by this Article to be
23paid from the proceeds of that tax.
24(Source: P.A. 98-641, eff. 6-9-14.)
 
25    (40 ILCS 5/9-184.5 new)

 

 

09900HB3484ham002- 38 -LRB099 09762 EFG 34505 a

1    Sec. 9-184.5. Delinquent contributions; deduction from
2payments of State funds to the county. If the county fails to
3transmit to the Fund contributions required of it under this
4Article by December 31st of the year in which such
5contributions are due, the Fund may, after giving notice to the
6county, certify to the State Comptroller the amounts of the
7delinquent payments in accordance with any applicable rules of
8the Comptroller, and the Comptroller must, beginning in payment
9year 2016, deduct and remit to the Fund the certified amounts
10from payments of State funds to the county.
11    The State Comptroller may not deduct from any payments of
12State funds to the county more than the amount of delinquent
13payments certified to the State Comptroller by the Fund.
 
14    (40 ILCS 5/10-107.5 new)
15    Sec. 10-107.5. Delinquent contributions; deduction from
16payments of State funds to the district. If the district fails
17to transmit to the Fund contributions required of it under this
18Article by December 31st of the year in which such
19contributions are due, the Fund may, after giving notice to the
20district, certify to the State Comptroller the amounts of the
21delinquent payments in accordance with any applicable rules of
22the Comptroller, and the Comptroller must, beginning in payment
23year 2016, deduct and remit to the Fund the certified amounts
24from payments of State funds to the district.
25    The State Comptroller may not deduct from any payments of

 

 

09900HB3484ham002- 39 -LRB099 09762 EFG 34505 a

1State funds to the district more than the amount of delinquent
2payments certified to the State Comptroller by the Fund.
 
3    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
4    Sec. 11-169. Financing; tax levy.
5    (a) Except as provided in subsection (f) of this Section,
6the city council of the city shall levy a tax annually upon all
7taxable property in the city at the rate that will produce a
8sum which, when added to the amounts deducted from the salaries
9of the employees or otherwise contributed by them and the
10amounts deposited under subsection (f), will be sufficient for
11the requirements of this Article. For the years prior to the
12year 1950 the tax rate shall be as provided for under "The 1935
13Act". Beginning with the year 1950 to and including the year
141969 such tax shall be not more than .036% annually of the
15value, as equalized or assessed by the Department of Revenue,
16of all taxable property within such city. Beginning with the
17year 1970 and each year thereafter through levy year 2014, the
18city shall levy a tax annually at a rate on the dollar of the
19value, as equalized or assessed by the Department of Revenue of
20all taxable property within such city that will produce, when
21extended, not to exceed an amount equal to the total amount of
22contributions by the employees to the fund made in the calendar
23year 2 years prior to the year for which the annual applicable
24tax is levied, multiplied by 1.1 for the years 1970, 1971 and
251972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235

 

 

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1for the year 1975; 1.280 for the year 1976; 1.325 for the year
21977; 1.370 for the years 1978 through 1998; and 1.000 for the
3year 1999 and for each year thereafter through levy year 2014.
4Beginning in levy year 2015, and in each year thereafter, the
5levy shall not exceed the amount of the city's total required
6contribution to the Fund for the next payment year, as
7determined under subsection (a-5). For the purposes of this
8Section, the payment year is the year immediately following the
9levy year.
10    The tax shall be levied and collected in like manner with
11the general taxes of the city, and shall be exclusive of and in
12addition to the amount of tax the city is now or may hereafter
13be authorized to levy for general purposes under any laws which
14may limit the amount of tax which the city may levy for general
15purposes. The county clerk of the county in which the city is
16located, in reducing tax levies under the provisions of any Act
17concerning the levy and extension of taxes, shall not consider
18the tax herein provided for as a part of the general tax levy
19for city purposes, and shall not include the same within any
20limitation of the per cent of the assessed valuation upon which
21taxes are required to be extended for such city.
22    Revenues derived from such tax shall be paid to the city
23treasurer of the city as collected and held by the city
24treasurer for the benefit of the fund.
25    If the payments on account of taxes are insufficient during
26any year to meet the requirements of this Article, the city may

 

 

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1issue tax anticipation warrants against the current tax levy.
2    The city may continue to use other lawfully available funds
3in lieu of all or part of the levy, as provided under
4subsection (f) of this Section.
5    (a-5) Beginning in payment year 2016, the city's required
6annual contribution to the Fund shall be the lesser of:
7        (i) (I) for payment years 2016 through 2055, the annual
8    amount determined by the Fund to be equal to the greater of
9    $0, or the sum of (1) the City's portion of the projected
10    normal cost for that fiscal year, plus (2) an amount
11    determined on a level percentage of applicable employee
12    payroll basis (reflecting any limits on individual
13    participants' pay that apply for benefit and contribution
14    purposes under this plan) that is sufficient to bring the
15    total actuarial assets of the Fund up to 90% of the total
16    actuarial liabilities of the Fund by the end of 2055. (II)
17    For payment years after 2055, the annual amount determined
18    by the Fund to be equal to the amount, if any, needed to
19    bring the total actuarial assets of the Fund up to 90% of
20    the total actuarial liabilities of the Fund as of the end
21    of the year. In making the determinations under both (I)
22    and (II), the actuarial calculations shall be determined
23    under the entry age normal actuarial cost method, and any
24    actuarial gains or losses from investment return incurred
25    in a fiscal year shall be recognized in equal annual
26    amounts over the 5-year period following the fiscal year;

 

 

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1    or
2        (ii) for payment year 2016, 1.60 times the total amount
3    of contributions made by or on behalf of employees to the
4    Fund for annuity purposes in the calendar year 2013; for
5    payment year 2017, 1.90 times the total amount of
6    contributions made by or on behalf of employees to the Fund
7    for annuity purposes in the calendar year 2014; for payment
8    year 2018, 2.20 times the total amount of contributions
9    made by or on behalf of employees to the Fund for annuity
10    purposes in the calendar year 2015; for payment year 2019,
11    2.50 times the total amount of contributions made by or on
12    behalf of employees to the Fund for annuity purposes in the
13    calendar year 2016; for payment year 2020, 2.80 times the
14    total amount of contributions made by or on behalf of
15    employees to the Fund for annuity purposes in the calendar
16    year 2017.
17However, beginning in the earlier of payment year 2021 or the
18first payment year in which the annual contribution amount
19calculated under subdivision (i) is less than the contribution
20amount calculated under subdivision (ii), and in each year
21thereafter, the city's required annual contribution to the Fund
22shall be determined under subdivision (i).
23    The city's required annual contribution to the Fund may be
24paid with any available funds and shall be paid by the city to
25the city treasurer. The city treasurer shall collect and hold
26those funds for the benefit of the Fund.

 

 

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1    (a-10) If the city fails to transmit to the Fund
2contributions required of it under this Article by December
331st of the year in which such contributions are due, the Fund
4may, after giving notice to the city, certify to the State
5Comptroller the amounts of the delinquent payments in
6accordance with any applicable rules of the Comptroller, and
7the Comptroller must, beginning in payment year 2016, deduct
8and remit to deposit into the Fund the certified amounts or a
9portion of those amounts from the following proportions of
10payments grants of State funds to the city:
11        (1) in payment year 2016, one-third of the total amount
12    of any payments grants of State funds to the city;
13        (2) in payment year 2017, two-thirds of the total
14    amount of any payments grants of State funds to the city;
15    and
16        (3) in payment year 2018 and each payment year
17    thereafter, the total amount of any payments grants of
18    State funds to the city.
19    The State Comptroller may not deduct from any payments
20grants of State funds to the city more than the amount of
21delinquent payments certified to the State Comptroller by the
22Fund.
23    (b) On or before July 1, annually, the board shall certify
24to the city council the annual amounts required under this
25Article, for which the tax herein provided may be levied for
26the following year. The board shall compute the amounts

 

 

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

 

 

09900HB3484ham002- 45 -LRB099 09762 EFG 34505 a

1taxes are required to be extended for the park district. The
2proceeds of the tax levied by the park district, upon receipt
3by the district, shall be immediately paid over to the city
4treasurer of the city for the uses and purposes of the fund.
5    The various sums to be contributed by the city and
6allocated for the purposes of this Article, and any interest to
7be contributed by the city, shall be taken from the revenue
8derived from the taxes authorized in this Section, and no money
9of such city derived from any source other than the levy and
10collection of those taxes or the sale of tax anticipation
11warrants in accordance with the provisions of this Article
12shall be used to provide revenue for this Article, except as
13expressly provided in this Section.
14    If it is not possible for the city to make contributions
15for age and service annuity and widow's annuity concurrently
16with the employee's contributions made for such purposes, such
17city shall make such contributions as soon as possible and
18practicable thereafter with interest thereon at the effective
19rate to the time they shall be made.
20    (d) With respect to employees whose wages are funded as
21participants under the Comprehensive Employment and Training
22Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2393-567, 88 Stat. 1845), hereinafter referred to as CETA,
24subsequent to October 1, 1978, and in instances where the board
25has elected to establish a manpower program reserve, the board
26shall compute the amounts necessary to be credited to the

 

 

09900HB3484ham002- 46 -LRB099 09762 EFG 34505 a

1manpower program reserves established and maintained as herein
2provided, and shall make a periodic determination of the amount
3of required contributions from the City to the reserve to be
4reimbursed by the federal government in accordance with rules
5and regulations established by the Secretary of the United
6States Department of Labor or his designee, and certify the
7results thereof to the City Council. Any such amounts shall
8become a credit to the City and will be used to reduce the
9amount which the City would otherwise contribute during
10succeeding years for all employees.
11    (e) In lieu of establishing a manpower program reserve with
12respect to employees whose wages are funded as participants
13under the Comprehensive Employment and Training Act of 1973, as
14authorized by subsection (d), the board may elect to establish
15a special municipality contribution rate for all such
16employees. If this option is elected, the City shall contribute
17to the Fund from federal funds provided under the Comprehensive
18Employment and Training Act program at the special rate so
19established and such contributions shall become a credit to the
20City and be used to reduce the amount which the City would
21otherwise contribute during succeeding years for all
22employees.
23    (f) In lieu of levying all or a portion of the tax required
24under this Section in any year, the city may deposit with the
25city treasurer no later than March 1 of that year for the
26benefit of the fund, to be held in accordance with this

 

 

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1Article, an amount that, together with the taxes levied under
2this Section for that year, is not less than the amount of the
3city contributions for that year as certified by the board to
4the city council. The deposit may be derived from any source
5legally available for that purpose, including, but not limited
6to, the proceeds of city borrowings. The making of a deposit
7shall satisfy fully the requirements of this Section for that
8year to the extent of the amounts so deposited. Amounts
9deposited under this subsection may be used by the fund for any
10of the purposes for which the proceeds of the tax levied by the
11city under this Section may be used, including the payment of
12any amount that is otherwise required by this Article to be
13paid from the proceeds of that tax.
14(Source: P.A. 98-641, eff. 6-9-14.)
 
15    (40 ILCS 5/12-149.5 new)
16    Sec. 12-149.5. Delinquent contributions; deduction from
17payments of State funds to the employer. If the employer fails
18to transmit to the Fund contributions required of it under this
19Article by December 31st of the year in which such
20contributions are due, the Fund may, after giving notice to the
21employer, certify to the State Comptroller the amounts of the
22delinquent payments in accordance with any applicable rules of
23the Comptroller, and the Comptroller must, beginning in payment
24year 2016, deduct and remit to the Fund the certified amounts
25from payments of State funds to the employer.

 

 

09900HB3484ham002- 48 -LRB099 09762 EFG 34505 a

1    The State Comptroller may not deduct from any payments of
2State funds to the employer more than the amount of delinquent
3payments certified to the State Comptroller by the Fund.
 
4    (40 ILCS 5/13-503.5 new)
5    Sec. 13-503.5. Delinquent contributions; deduction from
6payments of State funds to the employer. If the employer fails
7to transmit to the Fund contributions required of it under this
8Article by December 31st of the year in which such
9contributions are due, the Fund may, after giving notice to the
10employer, certify to the State Comptroller the amounts of the
11delinquent payments in accordance with any applicable rules of
12the Comptroller, and the Comptroller must, beginning in payment
13year 2016, deduct and remit to the Fund the certified amounts
14from payments of State funds to the employer.
15    The State Comptroller may not deduct from any payments of
16State funds to the employer more than the amount of delinquent
17payments certified to the State Comptroller by the Fund.
 
18    (40 ILCS 5/17-127.5 new)
19    Sec. 17-127.5. Delinquent contributions; deduction from
20payments of State funds to the employer. If the employer fails
21to transmit to the Fund contributions required of it under this
22Article by June 30th of the year in which such contributions
23are due, the Fund may, after giving notice to the employer,
24certify to the State Comptroller the amounts of the delinquent

 

 

09900HB3484ham002- 49 -LRB099 09762 EFG 34505 a

1payments in accordance with any applicable rules of the
2Comptroller, and the Comptroller must, beginning in fiscal year
32016, deduct and remit to the Fund the certified amounts from
4payments of State funds to the employer.
5    The State Comptroller may not deduct from any payments of
6State funds to the employer more than the amount of delinquent
7payments certified to the State Comptroller by the Fund.
 
8    (40 ILCS 5/22-104 new)
9    Sec. 22-104. Delinquent contributions; deduction from
10payments of State funds to the employer. If an employer of
11participants in a pension fund or retirement plan subject to
12this Division fails to transmit contributions required of it by
13that pension fund or retirement plan by December 31st of the
14year in which such contributions are due, the pension fund or
15retirement plan may, after giving notice to the employer,
16certify to the State Comptroller the amounts of the delinquent
17payments in accordance with any applicable rules of the
18Comptroller, and the Comptroller must, beginning in payment
19year 2016, deduct and remit to that pension fund or retirement
20plan the certified amounts from payments of State funds to the
21employer.
22    The State Comptroller may not deduct from any payments of
23State funds to the employer more than the amount of delinquent
24payments certified to the State Comptroller by the employer.
 

 

 

09900HB3484ham002- 50 -LRB099 09762 EFG 34505 a

1    Section 99. Effective date. This Act takes effect July 1,
22015.".