Full Text of SB0449 98th General Assembly
SB0449sam001 98TH GENERAL ASSEMBLY | Sen. Kwame Raoul Filed: 3/6/2014
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| 1 | | AMENDMENT TO SENATE BILL 449
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 449 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 17-129 and by adding Section 17-128.1 as | 6 | | follows: | 7 | | (40 ILCS 5/17-128.1 new) | 8 | | Sec. 17-128.1. Tax for employer contributions to the Fund. | 9 | | (a) For the purpose of providing monies for required | 10 | | employer
contributions to the Fund, beginning in 2015 and in | 11 | | each year thereafter, the Board of Education shall levy a tax | 12 | | on the equalized assessed value of all taxable property in the | 13 | | City, at a rate which, when extended, will produce an amount | 14 | | reasonably calculated
at the time of the levy to provide for | 15 | | payment in full of the Board of Education's contributions | 16 | | required
under Section 17-129 for the portions of the fiscal |
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| 1 | | years for which revenues
from the levy will be received, as | 2 | | such amount is determined and certified by the Board of the | 3 | | Fund, plus any amount of required Board of Education | 4 | | contributions
for previous years that remain unpaid. | 5 | | The tax required under this Section shall be levied and | 6 | | collected in like manner with the
other taxes of the Board of | 7 | | Education and shall be distributed as provided in subsection | 8 | | (b). | 9 | | The tax required under this Section shall be in addition to | 10 | | all other
taxes that the Board of Education is now or may | 11 | | hereafter be authorized to
levy, and shall be exclusive of and | 12 | | in
addition to the amount of tax authorized to be levied under | 13 | | any law that may limit the amount of
tax that the Board of | 14 | | Education may levy for this or any other purpose. The tax may
| 15 | | be levied by the Board of Education without being
authorized by | 16 | | a vote of the
people. | 17 | | The tax required under this Section shall not be considered | 18 | | or reduced in the course of determining any limitation of any | 19 | | other tax rate that may be
extended. | 20 | | (b) The proceeds of the tax required under this Section | 21 | | shall, upon collection, be paid by the tax collector directly | 22 | | and immediately to the Fund for deposit as directed by the | 23 | | Board of the Fund and shall be credited as contributions paid | 24 | | to the Fund by the Board of Education. | 25 | | (c) If the Board of Education fails to levy the tax as | 26 | | required under this Section, or the amount collected from that |
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| 1 | | tax is otherwise insufficient to pay the full amount of the | 2 | | required contribution certified by the Board of the Fund, then | 3 | | the Board of the Fund, after giving notice to the Board of | 4 | | Education, shall certify the amount of the insufficiency to the | 5 | | tax collector and direct that an amount of the proceeds | 6 | | received from the tax levied by the Board of Education for | 7 | | educational purposes under Section 34-53 of the School Code, | 8 | | equal to the certified insufficiency, shall upon collection be | 9 | | paid by the tax collector directly and immediately to the Fund | 10 | | for deposit as directed by the Board of the Fund. Any amount so | 11 | | paid shall be credited as contributions paid to the Fund by the | 12 | | Board of Education. | 13 | | (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129) | 14 | | Sec. 17-129. Employer contributions; deficiency in Fund. | 15 | | (a) If in any fiscal year of the Board of Education ending | 16 | | prior to 1997 the
total amounts paid to the Fund from the Board | 17 | | of Education (other than under
this subsection, and other than | 18 | | amounts used for making or "picking up"
contributions on behalf | 19 | | of teachers) and from the State do not equal the total
| 20 | | contributions made by or on behalf of the teachers for such | 21 | | year, or if the
total income of the Fund in any such fiscal | 22 | | year of the Board of Education from
all sources is less than | 23 | | the total such expenditures by the Fund for such year,
the | 24 | | Board of Education shall, in the next succeeding year, in | 25 | | addition to any
other payment to the Fund set apart and |
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| 1 | | appropriate from moneys from its tax
levy for educational | 2 | | purposes, a sum sufficient to remove such deficiency or
| 3 | | deficiencies, and promptly pay such sum into the Fund in order | 4 | | to restore any
of the reserves of the Fund that may have been | 5 | | so temporarily applied. Any
amounts received by the Fund after | 6 | | December 4, 1997 and before July 1, 2010 from State | 7 | | appropriations, including under Section
17-127, shall be a | 8 | | credit against and shall fully satisfy any obligation that
may | 9 | | have arisen, or be claimed to have arisen, under this | 10 | | subsection (a) as a
result of any deficiency or deficiencies in | 11 | | the fiscal year of the Board of
Education ending in calendar | 12 | | year 1997. | 13 | | (b) (i) Notwithstanding any other provision of this | 14 | | Section, and notwithstanding any prior certification by the | 15 | | Board under subsection (c) for fiscal year 2011, the Board of | 16 | | Education's total required contribution to the Fund for fiscal | 17 | | year 2011 under this Section is $187,000,000. | 18 | | (ii) Notwithstanding any other provision of this Section, | 19 | | the Board of Education's total required contribution to the | 20 | | Fund for fiscal year 2012 under this Section is $192,000,000. | 21 | | (iii) Notwithstanding any other provision of this Section, | 22 | | the Board of Education's total required contribution to the | 23 | | Fund for fiscal year 2013 under this Section is $196,000,000. | 24 | | (iv) For fiscal years 2014 through 2059, the minimum | 25 | | contribution to the Fund to be made by the Board of Education | 26 | | in each fiscal year shall be an amount determined by the Fund |
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| 1 | | to be sufficient to bring the total assets of the Fund up to | 2 | | 90% of the total actuarial liabilities of the Fund by the end | 3 | | of fiscal year 2059. In making these determinations, the | 4 | | required Board of Education contribution shall be calculated | 5 | | each year as a level percentage of the applicable employee | 6 | | payrolls over the years remaining to and including fiscal year | 7 | | 2059 and shall be determined under the projected unit credit | 8 | | actuarial cost method. | 9 | | (v) Beginning in fiscal year 2060, the minimum Board of | 10 | | Education contribution for each fiscal year shall be the amount | 11 | | needed to maintain the total assets of the Fund at 90% of the | 12 | | total actuarial liabilities of the Fund. | 13 | | (vi) Notwithstanding any other provision of this | 14 | | subsection (b), for any fiscal year, the contribution to the | 15 | | Fund from the Board of Education shall not be required to be in | 16 | | excess of the amount calculated as needed to maintain the | 17 | | assets (or cause the assets to be) at the 90% level by the end | 18 | | of the fiscal year. | 19 | | (vii) Any contribution by the State to or for the benefit | 20 | | of the Fund, including, without limitation, as referred to | 21 | | under Section 17-127, shall be a credit against any | 22 | | contribution required to be made by the Board of Education | 23 | | under this subsection (b) if the Board certifies that the total | 24 | | assets of the Fund are at least 90% of the total actuarial | 25 | | liabilities of the Fund as of June 30 of the previous fiscal | 26 | | year . |
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| 1 | | (c) The Board of the Fund shall determine the amount of | 2 | | Board of Education
contributions required for each fiscal year | 3 | | on the basis of the actuarial
tables and other assumptions | 4 | | adopted by the Board and the recommendations of
the actuary, in | 5 | | order to meet the minimum contribution requirements of
| 6 | | subsections (a) and (b). Annually, on or before February 28, | 7 | | the Board of the Fund shall
certify to the Board of Education | 8 | | the amount of the required Board of Education
contribution for | 9 | | the coming fiscal year. The certification shall include a
copy | 10 | | of the actuarial recommendations upon which it is based. | 11 | | (d) The Board of Education's required contribution to the | 12 | | Fund for fiscal year 2015 shall be paid in 12 equal monthly | 13 | | payments. | 14 | | The Board of Education's required contribution to the Fund | 15 | | for fiscal year 2016 shall be paid in 12 equal monthly | 16 | | payments, proportionately reduced by the amount of any proceeds | 17 | | of the tax required to be levied under Section 17-128.1 that | 18 | | are reasonably anticipated to be received by the Fund in that | 19 | | fiscal year. | 20 | | Beginning with fiscal year 2017 and continuing for each | 21 | | fiscal year thereafter, the Board of Education's required | 22 | | contribution to the Fund shall be paid from the proceeds of the | 23 | | tax required to be levied under Section 17-128.1 that are | 24 | | received by the Fund in that fiscal year. | 25 | | If the sum provided by the tax required under subsection | 26 | | (a) of Section 17-128.1 is insufficient to pay in full the |
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| 1 | | required contribution, the Board of Education remains liable | 2 | | for the payment of that insufficiency. If the insufficiency is | 3 | | not recovered by the Fund under subsection (c) of Section | 4 | | 17-128.1 or otherwise paid by the Board of Education, the | 5 | | amount remaining unpaid shall be added to the required | 6 | | contribution certified by the Board of the Fund for the next | 7 | | fiscal year. | 8 | | (Source: P.A. 96-889, eff. 4-14-10.) | 9 | | Section 90. The State Mandates Act is amended by adding | 10 | | Section 8.38 as follows: | 11 | | (30 ILCS 805/8.38 new) | 12 | | Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8 | 13 | | of this Act, no reimbursement by the State is required for the | 14 | | implementation of any mandate created by this amendatory Act of | 15 | | the 98th General Assembly.
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.".
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