SB0306 94TH GENERAL ASSEMBLY

LRB094 04139 AMC 34160 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0306

Introduced 2/15/2005, by Sen. Iris Y. Martinez

SYNOPSIS AS INTRODUCED:

40 ILCS 5/7-199.4 new

Amends the IMRF Article of the Illinois Pension Code. Provides that a municipality may transfer funds among its reserves, from one that is over 100% funded to one that is less, under certain circumstances. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

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

Section 5. The Illinois Pension Code is amended by adding 7-199.4 as follows:

(40 ILCS 5/7-199.4 new)

Sec. 7-199.4. To Transfer Reserves. Whenever any one of the municipality reserves established under Section 7-204(a) for a participating municipality exceeds 100% of the actuarially determined liability, the excess may be transferred to any of that municipality's other reserves with a balance of less than 100% of the actuarially determined liability. Upon request of the municipality, the Board shall prepare an impact note to determine how the transfer will affect the reserves and employer contribution rates for that municipality. Only after receipt of the impact note may the governing body of the municipality, by resolution, request the transfer. No such transfer may lower any reserve balance to less than 100% or increase any reserve balance to more than 100% of the actuarially determined liability.

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