Full Text of SB0370 100th General Assembly
SB0370sam002 100TH GENERAL ASSEMBLY | Sen. Napoleon Harris, III Filed: 5/9/2018
| | 10000SB0370sam002 | | LRB100 05078 MJP 39882 a |
|
| 1 | | AMENDMENT TO SENATE BILL 370
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 370 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 3-125 and 4-118 as follows:
| 6 | | (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
| 7 | | Sec. 3-125. Financing. | 8 | | (a) The city council or the board of trustees of
the | 9 | | municipality shall annually levy a tax upon all
the taxable | 10 | | property of the municipality at the rate on the dollar which
| 11 | | will produce an amount which, when added to the deductions from | 12 | | the salaries
or wages of police officers, and revenues
| 13 | | available from other
sources, will equal a sum sufficient to | 14 | | meet
the annual requirements of the police pension fund. The | 15 | | annual
requirements to be provided by such tax levy are equal
| 16 | | to (1) the normal cost of the pension fund for the year |
| | | 10000SB0370sam002 | - 2 - | LRB100 05078 MJP 39882 a |
|
| 1 | | involved, plus
(2) an amount sufficient to bring the total | 2 | | assets of the pension fund up to 90% of the total actuarial | 3 | | liabilities of the pension fund by the end of municipal fiscal | 4 | | year 2040, as annually updated and determined by an enrolled | 5 | | actuary employed by the Illinois Department of Insurance or by | 6 | | an enrolled actuary retained by the pension fund or the | 7 | | municipality. In making these determinations, the required | 8 | | minimum employer contribution shall be calculated each year as | 9 | | a level percentage of payroll over the years remaining up to | 10 | | and including fiscal year 2040 and shall be determined under | 11 | | the projected unit credit actuarial cost method. The tax shall | 12 | | be levied and
collected in the same manner as the general taxes
| 13 | | of the municipality, and in addition to all other taxes now or | 14 | | hereafter authorized to
be levied upon all property within the | 15 | | municipality, and shall be in
addition to the amount authorized | 16 | | to be levied for general purposes as
provided by Section 8-3-1 | 17 | | of the Illinois Municipal Code, approved May
29, 1961, as | 18 | | amended. The tax shall be forwarded directly to the treasurer | 19 | | of the board within 30 business days after receipt by the | 20 | | county.
| 21 | | (b) For purposes of determining the required employer | 22 | | contribution to a pension fund, the value of the pension fund's | 23 | | assets shall be equal to the actuarial value of the pension | 24 | | fund's assets, which shall be calculated as follows: | 25 | | (1) On March 30, 2011, the actuarial value of a pension | 26 | | fund's assets shall be equal to the market value of the |
| | | 10000SB0370sam002 | - 3 - | LRB100 05078 MJP 39882 a |
|
| 1 | | assets as of that date. | 2 | | (2) In determining the actuarial value of the System's | 3 | | assets for fiscal years after March 30, 2011, any actuarial | 4 | | gains or losses from investment return incurred in a fiscal | 5 | | year shall be recognized in equal annual amounts over the | 6 | | 5-year period following that fiscal year. | 7 | | (c) Except as provided in subsection (c-5), if If a | 8 | | participating municipality fails to transmit to the fund | 9 | | contributions required of it under this Article for more than | 10 | | 90 days after the payment of those contributions is due, the | 11 | | fund may, after giving notice to the municipality, certify to | 12 | | the State Comptroller the amounts of the delinquent payments in | 13 | | accordance with any applicable rules of the Comptroller, and | 14 | | the Comptroller must, beginning in fiscal year 2016, deduct and | 15 | | remit to the fund the certified amounts or a portion of those | 16 | | amounts from the following proportions of payments of State | 17 | | funds to the municipality: | 18 | | (1) in fiscal year 2016, one-third of the total amount | 19 | | of any payments of State funds to the municipality; | 20 | | (2) in fiscal year 2017, two-thirds of the total amount | 21 | | of any payments of State funds to the municipality; and | 22 | | (3) in fiscal year 2018 and each fiscal year | 23 | | thereafter, the total amount of any payments of State funds | 24 | | to the municipality. | 25 | | The State Comptroller may not deduct from any payments of | 26 | | State funds to the municipality more than the amount of |
| | | 10000SB0370sam002 | - 4 - | LRB100 05078 MJP 39882 a |
|
| 1 | | delinquent payments certified to the State Comptroller by the | 2 | | fund. | 3 | | (c-5) As used in this subsection, "distressed | 4 | | municipality" means a participating municipality that: (A) has | 5 | | a population of 30% or more at or below the federal poverty | 6 | | threshold and has a median property value of owner-occupied | 7 | | housing units below $75,000, as determined by the most recent | 8 | | published estimates of the United States Census Bureau; or (B) | 9 | | is certified by the Department of Revenue as being in the | 10 | | highest 5% of all home rule municipalities in terms of the | 11 | | aggregate of the rate percent of all taxes levied in accordance | 12 | | with statute or ordinance upon all property of the municipality | 13 | | and is certified by the Department of Revenue as being in the | 14 | | lowest 5% of all home rule municipalities in terms of per | 15 | | capita tax yield. | 16 | | If a distressed municipality fails to transmit to the fund | 17 | | contributions required of it under this Article for more than | 18 | | 180 days after the payment of those contributions is due, then | 19 | | the fund may, after giving notice to the municipality, certify | 20 | | to the State Comptroller the amount of the delinquent payments | 21 | | in accordance with any applicable rules of the Comptroller, and | 22 | | the Comptroller must, beginning in fiscal year 2020, deduct and | 23 | | remit to the fund the certified amounts of a portion of those | 24 | | amounts from the following proportions of payments of State | 25 | | funds to the municipality: | 26 | | (1) in fiscal year 2020, one-fourth of the total amount |
| | | 10000SB0370sam002 | - 5 - | LRB100 05078 MJP 39882 a |
|
| 1 | | of any payment of State funds to the municipality; | 2 | | (2) in fiscal year 2021, one-half of the total amount | 3 | | of any payments of State funds to the municipality; | 4 | | (3) in fiscal year 2022, three-fourths of the total | 5 | | amount of any payments of State funds to the municipality; | 6 | | and | 7 | | (4) in fiscal year 2023 and each year thereafter, the | 8 | | total amount of any payments of State funds to the | 9 | | municipality. | 10 | | The State Comptroller may not deduct from any payments of | 11 | | State funds to the distressed municipality more than the amount | 12 | | of delinquent payments certified to the State Comptroller by | 13 | | the fund. A distressed municipality is not subject to the | 14 | | provisions of subsection (c). | 15 | | (d) The police pension fund shall consist of the following | 16 | | moneys which
shall be set apart by the treasurer of the | 17 | | municipality:
| 18 | | (1) All moneys derived from the taxes levied hereunder;
| 19 | | (2) Contributions by police officers under Section | 20 | | 3-125.1;
| 21 | | (3) All moneys accumulated by the municipality under | 22 | | any previous
legislation establishing a fund for the | 23 | | benefit of disabled or retired
police officers;
| 24 | | (4) Donations, gifts or other transfers authorized by | 25 | | this
Article.
| 26 | | (e) The Commission on Government Forecasting and
|
| | | 10000SB0370sam002 | - 6 - | LRB100 05078 MJP 39882 a |
|
| 1 | | Accountability shall conduct a study of all funds established
| 2 | | under this Article and shall report its findings to the General
| 3 | | Assembly on or before January 1, 2013. To the fullest extent | 4 | | possible, the study shall include, but not be limited to, the | 5 | | following: | 6 | | (1) fund balances; | 7 | | (2) historical employer contribution rates for each
| 8 | | fund; | 9 | | (3) the actuarial formulas used as a basis for employer
| 10 | | contributions, including the actual assumed rate of return
| 11 | | for each year, for each fund; | 12 | | (4) available contribution funding sources; | 13 | | (5) the impact of any revenue limitations caused by
| 14 | | PTELL and employer home rule or non-home rule status; and | 15 | | (6) existing statutory funding compliance procedures
| 16 | | and funding enforcement mechanisms for all municipal
| 17 | | pension funds. | 18 | | (Source: P.A. 99-8, eff. 7-9-15.)
| 19 | | (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
| 20 | | Sec. 4-118. Financing.
| 21 | | (a) The city council or the board of trustees
of the | 22 | | municipality shall annually levy a tax upon all the taxable | 23 | | property
of the municipality at the rate on the dollar which | 24 | | will produce an amount
which, when added to the deductions from | 25 | | the salaries or wages of
firefighters and revenues available |
| | | 10000SB0370sam002 | - 7 - | LRB100 05078 MJP 39882 a |
|
| 1 | | from other sources, will equal a sum
sufficient to meet the | 2 | | annual actuarial requirements of the pension fund,
as | 3 | | determined by an enrolled actuary employed by the Illinois | 4 | | Department of
Insurance or by an enrolled actuary retained by | 5 | | the pension fund or
municipality. For the purposes of this | 6 | | Section, the annual actuarial
requirements of the pension fund | 7 | | are equal to (1) the normal cost of the
pension fund, or 17.5% | 8 | | of the salaries and wages to be paid to firefighters
for the | 9 | | year involved, whichever is greater, plus (2) an annual amount
| 10 | | sufficient to bring the total assets of the pension fund up to | 11 | | 90% of the total actuarial liabilities of the pension fund by | 12 | | the end of municipal fiscal year 2040, as annually updated and | 13 | | determined by an enrolled actuary employed by the Illinois | 14 | | Department of Insurance or by an enrolled actuary retained by | 15 | | the pension fund or the municipality. In making these | 16 | | determinations, the required minimum employer contribution | 17 | | shall be calculated each year as a level percentage of payroll | 18 | | over the years remaining up to and including fiscal year 2040 | 19 | | and shall be determined under the projected unit credit | 20 | | actuarial cost method. The amount
to be applied towards the | 21 | | amortization of the unfunded accrued liability in any
year | 22 | | shall not be less than the annual amount required to amortize | 23 | | the unfunded
accrued liability, including interest, as a level | 24 | | percentage of payroll over
the number of years remaining in the | 25 | | 40 year amortization period.
| 26 | | (a-5) For purposes of determining the required employer |
| | | 10000SB0370sam002 | - 8 - | LRB100 05078 MJP 39882 a |
|
| 1 | | contribution to a pension fund, the value of the pension fund's | 2 | | assets shall be equal to the actuarial value of the pension | 3 | | fund's assets, which shall be calculated as follows: | 4 | | (1) On March 30, 2011, the actuarial value of a pension | 5 | | fund's assets shall be equal to the market value of the | 6 | | assets as of that date. | 7 | | (2) In determining the actuarial value of the pension | 8 | | fund's assets for fiscal years after March 30, 2011, any | 9 | | actuarial gains or losses from investment return incurred | 10 | | in a fiscal year shall be recognized in equal annual | 11 | | amounts over the 5-year period following that fiscal year. | 12 | | (b) The tax shall be levied and collected in the same | 13 | | manner
as the general taxes of the municipality, and shall be | 14 | | in addition
to all other taxes now or hereafter authorized to | 15 | | be levied upon all
property within the municipality, and in | 16 | | addition to the amount authorized
to be levied for general | 17 | | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | 18 | | under Section 14 of the Fire Protection District Act. The
tax | 19 | | shall be forwarded directly to the treasurer of the board | 20 | | within 30
business days of receipt by the county
(or, in the | 21 | | case of amounts
added to the tax levy under subsection (f), | 22 | | used by the municipality to pay the
employer contributions | 23 | | required under subsection (b-1) of Section 15-155 of
this | 24 | | Code).
| 25 | | (b-5) Except as provided in subsection (b-10), if If a | 26 | | participating municipality fails to transmit to the fund |
| | | 10000SB0370sam002 | - 9 - | LRB100 05078 MJP 39882 a |
|
| 1 | | contributions required of it under this Article for more than | 2 | | 90 days after the payment of those contributions is due, the | 3 | | fund may, after giving notice to the municipality, certify to | 4 | | the State Comptroller the amounts of the delinquent payments in | 5 | | accordance with any applicable rules of the Comptroller, and | 6 | | the Comptroller must, beginning in fiscal year 2016, deduct and | 7 | | remit to the fund the certified amounts or a portion of those | 8 | | amounts from the following proportions of payments of State | 9 | | funds to the municipality: | 10 | | (1) in fiscal year 2016, one-third of the total amount | 11 | | of any payments of State funds to the municipality; | 12 | | (2) in fiscal year 2017, two-thirds of the total amount | 13 | | of any payments of State funds to the municipality; and | 14 | | (3) in fiscal year 2018 and each fiscal year | 15 | | thereafter, the total amount of any payments of State funds | 16 | | to the municipality. | 17 | | The State Comptroller may not deduct from any payments of | 18 | | State funds to the municipality more than the amount of | 19 | | delinquent payments certified to the State Comptroller by the | 20 | | fund. | 21 | | (b-10) As used in this subsection, "distressed | 22 | | municipality" means a participating municipality that: (A) has | 23 | | a population of 30% or more at or below the federal poverty | 24 | | threshold and has a median property value of owner-occupied | 25 | | housing units below $75,000, as determined by the most recent | 26 | | published estimates of the United States Census Bureau; or (B) |
| | | 10000SB0370sam002 | - 10 - | LRB100 05078 MJP 39882 a |
|
| 1 | | is certified by the Department of Revenue as being in the | 2 | | highest 5% of all home rule municipalities in terms of the | 3 | | aggregate of the rate percent of all taxes levied in accordance | 4 | | with statute or ordinance upon all property of the municipality | 5 | | and is certified by the Department of Revenue as being in the | 6 | | lowest 5% of all home rule municipalities in terms of per | 7 | | capita tax yield. | 8 | | If a distressed municipality fails to transmit to the fund | 9 | | contributions required of it under this Article for more than | 10 | | 180 days after the payment of those contributions is due, then | 11 | | the fund may, after giving notice to the municipality, certify | 12 | | to the State Comptroller the amount of the delinquent payments | 13 | | in accordance with any applicable rules of the Comptroller, and | 14 | | the Comptroller must, beginning in fiscal year 2020, deduct and | 15 | | remit to the fund the certified amounts of a portion of those | 16 | | amounts from the following proportions of payments of State | 17 | | funds to the municipality: | 18 | | (1) in fiscal year 2020, one-fourth of the total amount | 19 | | of any payment of State funds to the municipality; | 20 | | (2) in fiscal year 2021, one-half of the total amount | 21 | | of any payments of State funds to the municipality; | 22 | | (3) in fiscal year 2022, three-fourths of the total | 23 | | amount of any payments of State funds to the municipality; | 24 | | (4) in fiscal year 2023 and each year thereafter, the | 25 | | total amount of any payments of State funds to the | 26 | | municipality. |
| | | 10000SB0370sam002 | - 11 - | LRB100 05078 MJP 39882 a |
|
| 1 | | The State Comptroller may not deduct from any payments of | 2 | | State funds to the distressed municipality more than the amount | 3 | | of delinquent payments certified to the State Comptroller by | 4 | | the fund. A distressed municipality is not subject to the | 5 | | provisions of subsection (b-5). | 6 | | (c) The board shall make available to the membership and | 7 | | the general public
for inspection and copying at reasonable | 8 | | times the most recent Actuarial
Valuation Balance Sheet and Tax | 9 | | Levy Requirement issued to the fund by the
Department of | 10 | | Insurance.
| 11 | | (d) The firefighters' pension fund shall consist of the | 12 | | following moneys
which shall be set apart by the treasurer of | 13 | | the municipality: (1) all
moneys derived from the taxes levied | 14 | | hereunder; (2) contributions
by firefighters as provided under | 15 | | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | 16 | | emoluments that may be paid or given
for or on account of | 17 | | extraordinary service by the fire department or any
member | 18 | | thereof, except when allowed to be retained by competitive | 19 | | awards;
and (4) any money, real estate or personal property | 20 | | received by the board.
| 21 | | (e) For the purposes of this Section, "enrolled actuary" | 22 | | means an actuary:
(1) who is a member of the Society of | 23 | | Actuaries or the American
Academy of Actuaries; and (2) who is | 24 | | enrolled under Subtitle
C of Title III of the Employee | 25 | | Retirement Income Security Act of 1974, or
who has been engaged | 26 | | in providing actuarial services to one or more public
|
| | | 10000SB0370sam002 | - 12 - | LRB100 05078 MJP 39882 a |
|
| 1 | | retirement systems for a period of at least 3 years as of July | 2 | | 1, 1983.
| 3 | | (f) The corporate authorities of a municipality that | 4 | | employs a person
who is described in subdivision (d) of Section | 5 | | 4-106 may add to the tax levy
otherwise provided for in this | 6 | | Section an amount equal to the projected cost of
the employer | 7 | | contributions required to be paid by the municipality to the | 8 | | State
Universities Retirement System under subsection (b-1) of | 9 | | Section 15-155 of this
Code. | 10 | | (g) The Commission on Government Forecasting and
| 11 | | Accountability shall conduct a study of all funds established
| 12 | | under this Article and shall report its findings to the General
| 13 | | Assembly on or before January 1, 2013. To the fullest extent | 14 | | possible, the study shall include, but not be limited to, the | 15 | | following: | 16 | | (1) fund balances; | 17 | | (2) historical employer contribution rates for each
| 18 | | fund; | 19 | | (3) the actuarial formulas used as a basis for employer
| 20 | | contributions, including the actual assumed rate of return
| 21 | | for each year, for each fund; | 22 | | (4) available contribution funding sources; | 23 | | (5) the impact of any revenue limitations caused by
| 24 | | PTELL and employer home rule or non-home rule status; and | 25 | | (6) existing statutory funding compliance procedures
| 26 | | and funding enforcement mechanisms for all municipal
|
| | | 10000SB0370sam002 | - 13 - | LRB100 05078 MJP 39882 a |
|
| 1 | | pension funds.
| 2 | | (Source: P.A. 99-8, eff. 7-9-15.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.".
|
|