Full Text of HB3990 101st General Assembly
HB3990 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3990 Introduced 1/8/2020, by Rep. Allen Skillicorn SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/1A-110 |
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40 ILCS 5/1A-111 |
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Amends the Regulation of Public Pension Funds Article of the Illinois Pension Code. Requires an actuary who prepares actuarial statements for a pension fund to post a bond in the amount of $2,000,000,000.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | HB3990 | | LRB101 15982 RPS 65344 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 1A-110 and 1A-111 as follows:
| 6 | | (40 ILCS 5/1A-110)
| 7 | | Sec. 1A-110.
Actuarial statements by pension funds | 8 | | established under
Articles other than 3 or 4.
| 9 | | (a) Each pension fund established under an Article of this | 10 | | Code other than
Article 3 or 4 shall include as part of its | 11 | | annual statement a complete
actuarial statement applicable to | 12 | | the plan year.
| 13 | | The actuarial statement shall be filed with the Division | 14 | | within 9 months
after the close of the fiscal year of the | 15 | | pension fund. Any pension fund that
fails to file within that | 16 | | time is subject to the penalty provisions of Section
1A-113.
| 17 | | The board of trustees of each pension fund subject to this | 18 | | Section, on
behalf of all its participants, shall engage an | 19 | | enrolled actuary who shall
be responsible for the preparation | 20 | | of the materials comprising the actuarial
statement. The | 21 | | enrolled actuary shall post a bond in the amount of | 22 | | $2,000,000,000. The enrolled actuary shall utilize such | 23 | | assumptions and methods
as are necessary for the contents of |
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| 1 | | the matters reported in the actuarial
statement to be | 2 | | reasonably related to the experience of the plan and to
| 3 | | reasonable expectations, and to represent in the aggregate the | 4 | | actuary's best
estimate of anticipated experience under the | 5 | | plan.
| 6 | | The actuarial statement shall include a description of the | 7 | | actuarial
assumptions and methods used to determine the | 8 | | actuarial values in the
statement and shall disclose the impact | 9 | | of significant changes in the
actuarial assumptions and | 10 | | methods, plan provisions, and other pertinent
factors on the | 11 | | actuarial position of the plan.
| 12 | | The actuarial statement shall include a statement by the | 13 | | enrolled actuary
that to the best of his or her knowledge the | 14 | | actuarial statement is complete
and accurate and has been | 15 | | prepared in accordance with generally accepted
actuarial | 16 | | principles and practice.
| 17 | | For the purposes of this Section, "enrolled actuary" means | 18 | | an actuary who (1)
is a member of the Society of Actuaries or | 19 | | the American Academy of Actuaries
and (2) either is enrolled | 20 | | under Subtitle C of Title III of the Employee
Retirement Income | 21 | | Security Act of 1974 or was engaged in providing actuarial
| 22 | | services to a public retirement plan in Illinois on July 1, | 23 | | 1983.
| 24 | | (b) The actuarial statement referred to in subsection (a) | 25 | | shall
include all of the following:
| 26 | | (1) The dates of the plan year and the date of the |
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| 1 | | actuarial valuation
applicable to the plan year for which | 2 | | the actuarial statement is filed.
| 3 | | (2) The amount of (i) the contributions made by the | 4 | | participants, and
(ii) all other contributions, including | 5 | | those made by the employer or
employers.
| 6 | | (3) The total estimated amount of the covered | 7 | | compensation with respect to
active participants for the | 8 | | plan year for which the statement is filed.
| 9 | | (4) The number of (i) active participants, (ii) | 10 | | terminated participants
currently eligible for deferred | 11 | | vested pension benefits or the return of
contributions made | 12 | | by those participants, and (iii) all other participants and
| 13 | | beneficiaries included in the actuarial valuation.
| 14 | | (5) The following values as of the date of the | 15 | | actuarial valuation
applicable to the plan year for which | 16 | | the statement is filed:
| 17 | | (i) The current value of assets accumulated in the | 18 | | plan.
| 19 | | (ii) The unfunded accrued liability. The major | 20 | | factors that have
resulted in the change in the | 21 | | unfunded accrued liability from the previous year
| 22 | | shall be identified. Effects that are individually | 23 | | significant shall be
separately identified. As a | 24 | | minimum, the effect of the following shall be
shown: | 25 | | plan amendments; changes in actuarial assumptions; | 26 | | experience less (or
more) favorable than that assumed; |
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| 1 | | and contributions less (or more) than the
normal cost | 2 | | plus interest on the unfunded accrued liability.
| 3 | | (iii) The amount of accumulated contributions for | 4 | | active participants
(including interest, if any).
| 5 | | (iv) The actuarial present value of credited | 6 | | projected benefits for
vested participants currently | 7 | | receiving benefits, other vested participants,
and | 8 | | non-vested participants.
| 9 | | (6) The actuarial value of assets.
| 10 | | (7) Any other information that is necessary to fully | 11 | | and fairly
disclose the actuarial position of the plan and | 12 | | any other information the
enrolled actuary may present.
| 13 | | (8) Any other information regarding the plan that the | 14 | | Division may by rule
request.
| 15 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 16 | | (40 ILCS 5/1A-111)
| 17 | | Sec. 1A-111.
Actuarial statements by pension funds | 18 | | established under
Article 3 or 4.
| 19 | | (a) Each pension fund established under Article 3 or 4 of | 20 | | this Code shall
include as part of its annual statement a | 21 | | complete actuarial statement
applicable to the plan year.
| 22 | | If the actuarial statement is prepared by a person other | 23 | | than the Department,
it shall be filed with the Division within | 24 | | 9 months after the close of the
fiscal year of the pension | 25 | | fund. Any pension fund that fails to file within
that time |
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| 1 | | shall be subject to the penalty provisions of Section 1A-113. | 2 | | The
statement shall be prepared by or under the supervision of | 3 | | a qualified actuary,
signed by the qualified actuary, and | 4 | | contain such information as the Division
may by rule require. | 5 | | The qualified actuary shall post a bond in the amount of | 6 | | $2,000,000,000.
| 7 | | (b) For the purposes of this Section, "qualified actuary" | 8 | | means (i) a
member of the American Academy of Actuaries, or | 9 | | (ii) an individual who has
demonstrated to the satisfaction of | 10 | | the Director that he or she has the
educational background | 11 | | necessary for the practice of actuarial science and has
at | 12 | | least 7 years of actuarial experience.
| 13 | | (Source: P.A. 90-507, eff. 8-22-97.)
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