Illinois General Assembly - Full Text of HB1859
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Full Text of HB1859  102nd General Assembly

HB1859ham001 102ND GENERAL ASSEMBLY

Rep. Kelly M. Burke

Filed: 2/3/2022

 

 


 

 


 
10200HB1859ham001LRB102 11405 RPS 35822 a

1
AMENDMENT TO HOUSE BILL 1859

2    AMENDMENT NO. ______. Amend House Bill 1859 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 10-107 as follows:
 
6    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
7    Sec. 10-107. Financing - Tax levy.
8    (a) The forest preserve district may levy an annual tax on
9the value, as equalized or assessed by the Department of
10Revenue, of all taxable property in the district for the
11purpose of providing revenue for the fund. The rate of such tax
12in any year may not exceed the rate herein specified for that
13year or the rate which will produce, when extended, the sum
14herein stated for that year, whichever is higher: for any year
15prior to 1970, .00103% or $195,000; for the year 1970, .00111%
16or $210,000; for the year 1971, .00116% or $220,000. For the

 

 

10200HB1859ham001- 2 -LRB102 11405 RPS 35822 a

1year 1972 and each year thereafter, the Forest Preserve
2District shall levy a tax annually at a rate on the dollar of
3the value, as equalized or assessed by the Department of
4Revenue upon all taxable property in the county, when
5extended, not to exceed an amount equal to the total amount of
6contributions by the employees to the fund made in the
7calendar year 2 years prior to the year for which the annual
8applicable tax is levied, multiplied by 1.25 for the year
91972; and by 1.30 for the year 1973 and for each year
10thereafter through levy year 2022. Beginning in levy year
112023, and in each year thereafter, the Forest Preserve
12District shall levy a tax annually at a rate on the dollar of
13the value, as equalized or assessed by the Department of
14Revenue, of all taxable property within the county that will
15produce, when extended, an amount equal to no less than the
16amount of the Forest Preserve District's total required
17contribution to the Fund for the next payment year, as
18determined under subsection (b). For the purposes of this
19Section, the payment year is the year immediately following
20the levy year.
21    The tax shall be levied and collected in like manner with
22the general taxes of the district and shall be in addition to
23the maximum of all other tax rates which the district may levy
24upon the aggregate valuation of all taxable property and shall
25be exclusive of and in addition to the maximum amount and rate
26of taxes the district may levy for general purposes or under

 

 

10200HB1859ham001- 3 -LRB102 11405 RPS 35822 a

1and by virtue of any laws which limit the amount of tax which
2the district may levy for general purposes. The county clerk
3of the county in which the forest preserve district is located
4in reducing tax levies under the provisions of "An Act
5concerning the levy and extension of taxes", approved May 9,
61901, as amended, shall not consider any such tax as a part of
7the general tax levy for forest preserve purposes, and shall
8not include the same in the limitation of 1% of the assessed
9valuation upon which taxes are required to be extended, and
10shall not reduce the same under the provisions of that Act. The
11proceeds of the tax herein authorized shall be kept as a
12separate fund.
13    The forest preserve district may use other lawfully
14available funds in lieu of all or part of the levy.
15    The Board may establish a manpower program reserve, or a
16special forest preserve district contribution rate, with
17respect to employees whose wages are funded as program
18participants under the Comprehensive Employment and Training
19Act of 1973 in the manner provided in subsection (d) or (e),
20respectively, of Section 9-169.
21    (b)(1) Beginning in payment year 2023, the Forest Preserve
22District shall contribute to the Fund: $6,100,000 in payment
23year 2023; $8,100,000 in payment year 2024; and $10,200,000 in
24payment year 2025. The Forest Preserve District may contribute
25an additional amount to the Fund in each payment year 2023,
262024, or 2025, which shall not exceed a contribution of

 

 

10200HB1859ham001- 4 -LRB102 11405 RPS 35822 a

1$13,000,000 to the Fund in payment year 2023, 2024, or 2025.
2    (2) The retirement board shall retain an actuary who is a
3member in good standing of the American Academy of Actuaries
4to produce an annual actuarial report of the Fund. The annual
5actuarial report shall include, but not be limited to: (i) a
6statement of the actuarial value of the Fund's assets as
7projected over 30 years' time and the actuarial value of the
8Fund's liabilities as projected over the same period of time;
9and (ii) the minimum required employer contribution for the
10second year immediately following the year ending on the
11valuation date upon which the annual actuarial report is
12based. The annual actuarial report shall be reviewed and
13formally adopted by the retirement board and may be included
14in other annual reports.
15    (3) The minimum required employer contribution for a
16specified year as set forth in the annual actuarial report
17required under paragraph (2) shall be the amount determined by
18the Fund's actuary to be equal to the sum of: (i) the projected
19normal cost for pensions for that fiscal year, plus (ii) a
20projected unfunded actuarial accrued liability amortization
21payment for pensions for the fiscal year, plus (iii) projected
22expenses for that fiscal year, plus (iv) interest to adjust
23for payment pattern during the fiscal year, minus (v)
24projected employee contributions for that fiscal year. The
25Forest Preserve District's required annual contribution to the
26Fund shall not be less than the sum of: (i) the projected

 

 

10200HB1859ham001- 5 -LRB102 11405 RPS 35822 a

1normal cost for pensions for that fiscal year, plus (ii) a
2projected unfunded actuarial accrued liability amortization
3payment for pensions for the fiscal year, plus (iii) projected
4expenses for that fiscal year, plus (iv) interest to adjust
5for payment pattern during the fiscal year, minus (v)
6projected employee contributions for that fiscal year. The
7minimum required employer contribution shall be based on the
8entry age normal cost method, a 5-year smoothed actuarial
9value of assets, and a 30-year layered amortization of
10unfunded actuarial accrued liability with payments increasing
11at 2% per year. The unfunded actuarial accrued liability
12payment schedule shall be based on the schedule initially
13established in 2016 and ending in 2046.
14    The minimum required employer contribution shall be
15submitted annually by the Forest Preserve District on or
16before July 31 unless another time frame is agreed upon by the
17Forest Preserve District and the Fund. The methods provided in
18this Section may be amended as recommended by an independent
19actuary engaged by the Fund and in compliance with actuarial
20standards of practice and as adopted by an affirmative vote of
21a majority of the retirement board and the Forest Preserve
22District Board of Commissioners.
23    (4) For payment years 2026 through 2063, the Forest
24Preserve District's required annual contribution to the Fund
25shall be the minimum required employer contribution set forth
26in paragraph(3) of this subsection (b).

 

 

10200HB1859ham001- 6 -LRB102 11405 RPS 35822 a

1    (5) For payment years after 2063, the Forest Preserve
2District's required annual contribution to the Fund shall be
3equal to the amount, if any, needed to bring the total
4actuarial assets of the Fund up to 100% of the total actuarial
5liabilities of the Fund by the end of the year.
6    (6) To the extent that the Forest Preserve District's
7contribution for any of the payment years referenced in this
8subsection (b) is made with property taxes, those property
9taxes shall be levied, collected, and paid to the Fund in a
10like manner with the general taxes of the Forest Preserve
11District.
12(Source: P.A. 102-210, eff. 1-1-22.)
 
13    Section 90. The State Mandates Act is amended by adding
14Section 8.46 as follows:
 
15    (30 ILCS 805/8.46 new)
16    Sec. 8.46. Exempt mandate. Notwithstanding Sections 6 and
178 of this Act, no reimbursement by the State is required for
18the implementation of any mandate created by this amendatory
19Act of the 102nd General Assembly.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".