SB3282 98TH GENERAL ASSEMBLY

LRB098 17088 RPM 52175 b

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.

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 changing Section 17-129 and by adding Section 17-129.1 as follows:

(40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)

Sec. 17-129. Employer contributions; deficiency in Fund.

(a) If in any fiscal year of the Board of Education ending prior to 1997 the total amounts paid to the Fund from the Board of Education (other than under this subsection, and other than amounts used for making or "picking up" contributions on behalf of teachers) and from the State do not equal the total contributions made by or on behalf of the teachers for such year, or if the total income of the Fund in any such fiscal year of the Board of Education from all sources is less than the total such expenditures by the Fund for such year, the Board of Education shall, in the next succeeding year, in addition to any other payment to the Fund set apart and appropriate from moneys from its tax levy for educational purposes, a sum sufficient to remove such deficiency or deficiencies, and promptly pay such sum into the Fund in order to restore any of the reserves of the Fund that may have been so temporarily applied. Any amounts received by the Fund after December 4, 1997 from State appropriations, including under Section 17-127, shall be a credit against and shall fully satisfy any obligation that may have arisen, or be claimed to have arisen, under this subsection (a) as a result of any deficiency or deficiencies in the fiscal year of the Board of Education ending in calendar year 1997.

(b) (i) Notwithstanding any other provision of this Section, and notwithstanding any prior certification by the Board under subsection (c) for fiscal year 2011, the Board of Education's total required contribution to the Fund for fiscal year 2011 under this Section is $187,000,000.

(ii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2012 under this Section is $192,000,000.

(iii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2013 under this Section is $196,000,000.

(iv) For fiscal years 2014 through 2059, the minimum contribution to the Fund to be made by the Board of Education in each fiscal year shall be an amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2059. In making these determinations, the required Board of Education contribution shall be calculated each year as a level percentage of the applicable employee payrolls over the years remaining to and including fiscal year 2059 and shall be determined under the projected unit credit actuarial cost method.

(v) Beginning in fiscal year 2060, the minimum Board of Education contribution for each fiscal year shall be the amount needed to maintain the total assets of the Fund at 90% of the total actuarial liabilities of the Fund.

(vi) Notwithstanding any other provision of this subsection (b), for any fiscal year, the contribution to the Fund from the Board of Education shall not be required to be in excess of the amount calculated as needed to maintain the assets (or cause the assets to be) at the 90% level by the end of the fiscal year.

(vii) Any contribution by the State to or for the benefit of the Fund, including, without limitation, as referred to under Section 17-127, shall be a credit against any contribution required to be made by the Board of Education under this subsection (b).

(c) The Board shall determine the amount of Board of Education contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the recommendations of the actuary, in order to meet the minimum contribution requirements of subsections (a) and (b). Annually, on or before February 28, the Board shall certify to the Board of Education the amount of the required Board of Education contribution for the coming fiscal year. The certification shall include a copy of the actuarial recommendations upon which it is based. Beginning in fiscal year 2015, the Board shall submit vouchers for payment of Board of Education contributions on or as soon as possible after the 15th day of each month, in a total monthly amount of one-twelfth of the Board of Education's required annual contribution certified under this subsection.

(Source: P.A. 96-889, eff. 4-14-10.)

(40 ILCS 5/17-129.1 new)

Sec. 17-129.1. Actions to enforce Board of Education contributions. If the Board of Education fails to transmit to the Fund contributions required of it under this Article or contributions collected by it from its participating employees for the purposes of this Article for more than 90 days after receipt of voucher, the Fund, after giving notice to the Board of Education, may certify to the State Comptroller the amounts of such delinquent payments and the Comptroller shall deduct the amounts so certified or any part thereof from any grants of State funds to the Board of Education and shall pay the amount so deducted to the Fund. If State funds from which such deductions may be made are not available, the Fund may certify to the City Treasurer of Chicago the amounts of such delinquent payments and the City Treasurer of Chicago shall deduct the amounts so certified or any part thereof from the tax levied by the Board of Education under Section 34-53 of the School Code and shall pay the amount so deducted directly to the Fund.

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