093_HB1174

 
                                     LRB093 07823 LRD 08012 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 17-127 and 17-129 as follows:

 6        (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
 7        Sec. 17-127. Financing; revenues for the Fund.
 8        (a)  The  revenues  for  the  Fund  shall consist of: (1)
 9    amounts paid into the Fund by contributors thereto  and  from
10    employer contributions and State appropriations in accordance
11    with  this Article; (2) amounts contributed to the Fund by an
12    Employer; (3) amounts contributed to the Fund pursuant to any
13    law  now  in  force  or  hereafter   to   be   enacted;   (4)
14    contributions  from any other source; and (5) the earnings on
15    investments of the Fund.
16        (b)  The General Assembly finds that for many  years  the
17    State  has  contributed  to the Fund an annual amount that is
18    between 20% and  30%  of  the  amount  of  the  annual  State
19    contribution  to  the  Article  16 retirement system, and the
20    General Assembly declares that it is its goal  and  intention
21    to  continue  this  level  of contribution to the Fund in the
22    future.
23        (b-5)  Beginning In State fiscal years year 1999  through
24    2003,  the  State shall include in its annual contribution to
25    the Fund an additional amount equal to 0.544% of  the  Fund's
26    total   teacher   payroll;   except   that   this  additional
27    contribution need not be made in a fiscal year if  the  Board
28    has certified in the previous fiscal year that the Fund is at
29    least  90%  funded, based on actuarial determinations.  These
30    additional State  contributions  are  intended  to  offset  a
31    portion  of  the  cost  to  the  Fund  of  the  increases  in
 
                            -2-      LRB093 07823 LRD 08012 b
 1    retirement  benefits  resulting  from  Public Act 90-582 this
 2    amendatory Act of 1998.
 3        (c)  For each State fiscal  year  ending  after  calendar
 4    year  2003,  the State shall contribute to the Fund, by means
 5    of appropriations from the Common School Fund or other  State
 6    funds,  an amount not less than the greater of (i) the amount
 7    appropriated for the Fund for the State fiscal year ending in
 8    calendar year 2003 or (ii) the minimum  funding  requirement,
 9    as  defined  below,  for that fiscal year (calculated without
10    regard to any contribution of the State to or for the benefit
11    of the Fund under this subsection (c)).
12        (d)  Beginning in the State fiscal year ending  in  2004,
13    on  the 15th day of each month, or as soon after that date as
14    is practicable, the Board shall submit vouchers  for  payment
15    of  State  contributions  to the Fund, in a monthly amount of
16    one-twelfth of the required annual State  contribution  under
17    subsection  (c)  of  this  Section.   If that required annual
18    contribution  changes  during  the  State  fiscal  year,  the
19    remaining monthly amounts shall be adjusted in equal  amounts
20    so that the total amount for which vouchers are submitted for
21    the  year  equals  that  required annual contribution.  These
22    vouchers shall be paid by the State Comptroller and Treasurer
23    by warrants drawn on the funds appropriated to the  Fund  for
24    that  fiscal  year.   If,  in any month, the amount remaining
25    unexpended from all other State appropriations  to  the  Fund
26    for  that State fiscal year is less than the amount for which
27    vouchers are  lawfully  submitted  under  this  Section,  the
28    difference  shall  be paid under the continuing appropriation
29    available for that purpose pursuant to  the  Chicago  Teacher
30    Pension Fund Continuing Appropriation Act.
31        (e)  For  the  purposes of this Section, "minimum funding
32    requirement" for any fiscal year means the minimum  Board  of
33    Education  contribution  to  the Fund under Sections 17-127.2
34    and 17-129 (calculated without regard to any contribution  of
 
                            -3-      LRB093 07823 LRD 08012 b
 1    the State to or for the benefit of the Fund).
 2    (Source:  P.A.  90-548,  eff.  12-4-97;  90-566, eff. 1-2-98;
 3    90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)

 4        (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
 5        Sec. 17-129. Employer contributions; deficiency in Fund.
 6        (a)  If in any fiscal year  of  the  Board  of  Education
 7    ending  prior to 1997 the total amounts paid to the Fund from
 8    the Board of Education (other than under this subsection, and
 9    other  than  amounts  used  for  making   or   "picking   up"
10    contributions  on  behalf  of teachers) and from the State do
11    not equal the total contributions made by or on behalf of the
12    teachers for such year, or if the total income of the Fund in
13    any such fiscal year of  the  Board  of  Education  from  all
14    sources  is less than the total such expenditures by the Fund
15    for such year, the Board of  Education  shall,  in  the  next
16    succeeding year, in addition to any other payment to the Fund
17    set  apart  and appropriate from moneys from its tax levy for
18    educational  purposes,  a  sum  sufficient  to  remove   such
19    deficiency  or  deficiencies,  and promptly pay such sum into
20    the Fund in order to restore any of the reserves of the  Fund
21    that  may  have  been  so  temporarily  applied.  Any amounts
22    received by the  Fund  after  December  4,  1997  from  State
23    appropriations,  including  under  Section 17-127, shall be a
24    credit against and shall fully satisfy  any  obligation  that
25    may  have  arisen,  or  be claimed to have arisen, under this
26    subsection (a) as a result of any deficiency or  deficiencies
27    in  the  fiscal  year  of  the  Board  of Education ending in
28    calendar year 1997.
29        (b)  (i)  For fiscal years 2011 through 2045, the minimum
30    contribution to the Fund to be made by the Board of Education
31    in each fiscal year shall be an amount determined by the Fund
32    to be sufficient, taking into account payments made and to be
33    made under Section 17-127.2, to bring the total assets of the
 
                            -4-      LRB093 07823 LRD 08012 b
 1    Fund up to 90% of the total actuarial liabilities of the Fund
 2    by  the  end  of  fiscal  year   2045.    In   making   these
 3    determinations,  the required Board of Education contribution
 4    shall be calculated each year as a level  percentage  of  the
 5    applicable  employee payrolls over the years remaining to and
 6    including fiscal year 2045 and shall be determined under  the
 7    projected unit credit actuarial cost method.
 8        (ii)  For  fiscal  years  1999 through 2010, the Board of
 9    Education's contribution to the Fund, as a percentage of  the
10    applicable  employee  payroll,  shall  be  increased in equal
11    annual increments so that by fiscal year 2011, the  Board  of
12    Education  is  contributing  at  the rate required under this
13    subsection.
14        (iii)  Beginning in fiscal year 2046, the  minimum  Board
15    of  Education  contribution for each fiscal year shall be the
16    amount needed to maintain the total assets of the Fund at 90%
17    of the total actuarial liabilities of the Fund.
18        (iv)  Notwithstanding the provisions of  paragraphs  (i),
19    (ii),  and  (iii) of this subsection (b) or Section 17-127.2,
20    for any fiscal year the contribution to  the  Fund  from  the
21    Board  of  Education shall not be required to be in excess of
22    the amount calculated as needed to maintain  the  assets  (or
23    cause  the  assets  to be) at the 90% level by the end of the
24    fiscal year.
25        (v)  Any contribution by the State to or for the  benefit
26    of  the Fund in a fiscal year, including, without limitation,
27    any contribution as referred to under Section  17-127,  shall
28    be  a  credit against any contribution required to be made by
29    the Board of Education under this subsection (b) and  Section
30    17-127.2 in that fiscal year.
31        (c)  The  Board  shall  determine  the amount of Board of
32    Education contributions required for each fiscal year on  the
33    basis  of  the actuarial tables and other assumptions adopted
34    by the Board and the recommendations of the actuary, in order
 
                            -5-      LRB093 07823 LRD 08012 b
 1    to meet the minimum contribution requirements of  subsections
 2    (a)  and  (b).  Annually, on or before February 28, the Board
 3    shall certify to the Board of Education  the  amount  of  the
 4    required  Board  of  Education  contribution  for  the coming
 5    fiscal year.  The certification shall include a copy  of  the
 6    actuarial recommendations upon which it is based.
 7    (Source:  P.A.  89-15,  eff.  5-30-95;  90-548, eff. 12-4-97;
 8    90-566, eff. 1-2-98; 90-655, eff. 7-30-98.)

 9        Section 99.  Effective date.  This Act takes effect  upon
10    becoming law.