Full Text of HB2468 94th General Assembly
HB2468ham001 94TH GENERAL ASSEMBLY
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Personnel and Pensions Committee
Filed: 3/10/2005
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09400HB2468ham001 |
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LRB094 08345 AMC 42784 a |
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| AMENDMENT TO HOUSE BILL 2468
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| AMENDMENT NO. ______. Amend House Bill 2468 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Pension Code is amended by | 5 |
| changing Sections
17-127 and 17-129 as follows:
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| (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
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| Sec. 17-127. Financing; revenues for the Fund.
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| (a) The revenues for the Fund shall consist of: (1) amounts | 9 |
| paid into
the Fund by contributors thereto and from employer | 10 |
| contributions and State
appropriations in accordance with this | 11 |
| Article; (2) amounts contributed to the
Fund by an Employer; | 12 |
| (3) amounts contributed to the Fund pursuant to any law
now in | 13 |
| force or hereafter to be enacted; (4) contributions from any | 14 |
| other
source; and (5) the earnings on investments of the Fund .
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| (b) The General Assembly finds that for many years the | 16 |
| State has
contributed to the Fund an annual amount that is | 17 |
| between 20% and 30% of the
amount of the annual State | 18 |
| contribution to the Article 16 retirement system,
and the | 19 |
| General Assembly declares that it is its goal and intention to | 20 |
| continue
this level of contribution to the Fund in the future.
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| (b-5)
Beginning In State fiscal years
year 1999 through
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| 2005 , the State shall include
in its annual contribution to the | 23 |
| Fund an additional amount equal to 0.544% of
the Fund's total | 24 |
| teacher payroll; except that this additional contribution need
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| not be made in a fiscal year if the Board has certified in the | 2 |
| previous
fiscal year that the Fund is at least 90% funded, | 3 |
| based on actuarial
determinations. These additional State | 4 |
| contributions are intended to offset
a portion of the cost to | 5 |
| the Fund of the increases in retirement benefits
resulting from | 6 |
| Public Act 90-582
this amendatory Act of 1998 .
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| (c) For each State fiscal year ending after calendar year | 8 |
| 2005, the
State shall contribute to the Fund, by means of | 9 |
| appropriations from the Common
School Fund or other State | 10 |
| funds, an amount not less than the greater of (i)
the amount | 11 |
| appropriated for the Fund for the State fiscal year ending in
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| calendar year 2003 or (ii) the minimum funding requirement, as | 13 |
| defined below,
for that fiscal year (calculated without regard | 14 |
| to any contribution of the
State to or for the benefit of the | 15 |
| Fund under this subsection (c)).
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| (d) Beginning in the State fiscal year ending in 2006, on | 17 |
| the 15th day of
each month, or as soon after that date as is | 18 |
| practicable, the Board shall
submit vouchers for payment of | 19 |
| State contributions to the Fund, in a monthly
amount of | 20 |
| one-twelfth of the required annual State contribution under
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| subsection (c) of this Section. If that required annual | 22 |
| contribution changes
during the State fiscal year, the | 23 |
| remaining monthly amounts shall be adjusted
in equal amounts so | 24 |
| that the total amount for which vouchers are submitted for
the | 25 |
| year equals that
required annual contribution. These vouchers | 26 |
| shall be paid by the State
Comptroller and Treasurer by | 27 |
| warrants drawn on the funds appropriated to the
Fund for that | 28 |
| fiscal year. If, in any month, the amount remaining unexpended
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| from all other State appropriations to the Fund for that State | 30 |
| fiscal year is
less than the amount for which vouchers are | 31 |
| lawfully submitted under this
Section, the difference shall be | 32 |
| paid under the continuing appropriation
available for that | 33 |
| purpose pursuant to the Chicago Teacher Pension Fund
Continuing | 34 |
| Appropriation Act.
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| (e) If the State does not make the contribution required by | 2 |
| subsections (c) and (d), then the Board of Education shall meet | 3 |
| the minimum funding requirement, as defined in subsection (f).
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| (f) For the purposes of this Section, "minimum funding | 5 |
| requirement"
for any fiscal year means the minimum Board of | 6 |
| Education contribution to the
Fund under Section 17-129 | 7 |
| (calculated without regard to
any contribution of the State to | 8 |
| or for the benefit of the Fund).
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| (g) The changes made to this Section or Section 17-129 by | 10 |
| this amendatory Act of the 94th General Assembly shall not be | 11 |
| construed, interpreted, or otherwise viewed to imply an | 12 |
| authorization, desire, or intent to merge or in any other way | 13 |
| combine the Public School Teachers' Pension and Retirement Fund | 14 |
| of Chicago with any other pension fund.
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| (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98; | 16 |
| 90-582, eff.
5-27-98; 90-655, eff. 7-30-98.)
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| (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
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| Sec. 17-129. Employer contributions; deficiency in Fund.
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| (a) If in any fiscal year of the Board of Education ending | 20 |
| prior to 1997 the
total amounts paid to the Fund from the Board | 21 |
| of Education (other than under
this subsection, and other than | 22 |
| amounts used for making or "picking up"
contributions on behalf | 23 |
| of teachers) and from the State do not equal the total
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| contributions made by or on behalf of the teachers for such | 25 |
| year, or if the
total income of the Fund in any such fiscal | 26 |
| year of the Board of Education from
all sources is less than | 27 |
| the total such expenditures by the Fund for such year,
the | 28 |
| Board of Education shall, in the next succeeding year, in | 29 |
| addition to any
other payment to the Fund set apart and | 30 |
| appropriate from moneys from its tax
levy for educational | 31 |
| purposes, a sum sufficient to remove such deficiency or
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| deficiencies, and promptly pay such sum into the Fund in order | 33 |
| to restore any
of the reserves of the Fund that may have been |
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| so temporarily applied. Any
amounts received by the Fund after | 2 |
| December 4, 1997 from State appropriations, including under | 3 |
| Section
17-127, shall be a credit against and shall fully | 4 |
| satisfy any obligation that
may have arisen, or be claimed to | 5 |
| have arisen, under this subsection (a) as a
result of any | 6 |
| deficiency or deficiencies in the fiscal year of the Board of
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| Education ending in calendar year 1997.
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| (b) (i) For fiscal years 2011 through 2045, the minimum | 9 |
| contribution
to the Fund to be made by the Board of Education | 10 |
| in each fiscal year shall be
an amount determined by the Fund | 11 |
| to be sufficient , taking into account
payments
made and to be | 12 |
| made under Section 17-127.2, to bring the total assets of
the | 13 |
| Fund up to 90% of the total actuarial liabilities of the Fund | 14 |
| by the end of
fiscal year 2045. In making these determinations, | 15 |
| the required Board of
Education contribution shall be | 16 |
| calculated each year as a level percentage of
the applicable | 17 |
| employee payrolls over the years remaining to and including
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| fiscal year 2045 and shall
be determined under the projected | 19 |
| unit credit actuarial cost method.
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| (ii) For fiscal years 1999 through 2010, the Board of | 21 |
| Education's
contribution to the Fund, as a percentage of the | 22 |
| applicable employee payroll,
shall be increased in equal annual | 23 |
| increments so that by fiscal year 2011, the
Board of Education | 24 |
| is contributing at the rate required under this subsection.
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| (iii) Beginning in fiscal year 2046, the minimum Board of | 26 |
| Education
contribution for each fiscal year shall be the amount | 27 |
| needed to maintain the
total assets of the Fund at 90% of the | 28 |
| total actuarial liabilities of the Fund.
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| (iv) Notwithstanding the provisions of paragraphs (i), | 30 |
| (ii), and (iii)
of this subsection (b) or Section 17-127.2 , for | 31 |
| any fiscal year the
contribution to the Fund from
the Board of | 32 |
| Education shall not be required to be in excess of the amount
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| calculated as needed to maintain the assets (or cause the | 34 |
| assets to be) at the
90% level by the end of the fiscal year.
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| (v) Any contribution by the State to or for the benefit of | 2 |
| the Fund
in a fiscal year , including, without limitation, any | 3 |
| contribution
as
referred to under Section 17-127, shall be a | 4 |
| credit against any contribution
required to be made by the | 5 |
| Board of Education under this subsection (b).
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| (c) The Board shall determine the amount of Board of | 7 |
| Education
contributions required for each fiscal year on the | 8 |
| basis of the actuarial
tables and other assumptions adopted by | 9 |
| the Board and the recommendations of
the actuary, in order to | 10 |
| meet the minimum contribution requirements of
subsections (a) | 11 |
| and (b). Annually, on or before February 28, the Board shall
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| certify to the Board of Education the amount of the required | 13 |
| Board of Education
contribution for the coming fiscal year. The | 14 |
| certification shall include a
copy of the actuarial | 15 |
| recommendations upon which it is based.
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| (Source: P.A. 89-15, eff. 5-30-95; 90-548, eff. 12-4-97; | 17 |
| 90-566, eff. 1-2-98;
90-655, eff. 7-30-98.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.".
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