Full Text of SB0449 99th General Assembly
SB0449 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB0449 Introduced 1/28/2015, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 |
| Amends the General Assembly Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
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| | | PENSION IMPACT NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB0449 | | LRB099 03090 RPS 23098 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 | | Section 2-124 as follows:
| 6 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 7 | | Sec. 2-124. Contributions by State.
| 8 | | (a) The
The State shall make contributions to the System by
| 9 | | appropriations of amounts which, together with the | 10 | | contributions of
participants, interest earned on investments, | 11 | | and other income
will meet the cost of maintaining and | 12 | | administering the System on a 100%
funded basis in accordance | 13 | | with actuarial recommendations by the end of State fiscal year | 14 | | 2044. | 15 | | (b) The Board shall determine the amount of State
| 16 | | contributions required for each fiscal year on the basis of the
| 17 | | actuarial tables and other assumptions adopted by the Board and | 18 | | the
prescribed rate of interest, using the formula in | 19 | | subsection (c).
| 20 | | (c) For State fiscal years 2015 through 2044, the minimum | 21 | | contribution
to the System to be made by the State for each | 22 | | fiscal year shall be an amount
determined by the System to be | 23 | | equal to the sum of (1) the State's portion of the projected |
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| 1 | | normal cost for that fiscal year, plus (2) an amount sufficient | 2 | | to bring the total assets of the
System up to 100% of the total | 3 | | actuarial liabilities of the System by the end of
State fiscal | 4 | | year 2044. In making these determinations, the required State
| 5 | | contribution shall be calculated each year as a level | 6 | | percentage of payroll
over the years remaining to and including | 7 | | fiscal year 2044 and shall be
determined under the projected | 8 | | unit cost method for fiscal year 2015 and under the entry age | 9 | | normal actuarial cost method for fiscal years 2016 through | 10 | | 2044. | 11 | | For State fiscal years 2012 through 2014, the minimum | 12 | | contribution
to the System to be made by the State for each | 13 | | fiscal year shall be an amount
determined by the System to be | 14 | | sufficient to bring the total assets of the
System up to 90% of | 15 | | the total actuarial liabilities of the System by the end of
| 16 | | State fiscal year 2045. In making these determinations, the | 17 | | required State
contribution shall be calculated each year as a | 18 | | level percentage of payroll
over the years remaining to and | 19 | | including fiscal year 2045 and shall be
determined under the | 20 | | projected unit credit actuarial cost method.
| 21 | | For State fiscal years 1996 through 2005, the State | 22 | | contribution to
the System, as a percentage of the applicable | 23 | | employee payroll, shall be
increased in equal annual increments | 24 | | so that by State fiscal year 2011, the
State is contributing at | 25 | | the rate required under this Section.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State
contribution for State fiscal year 2006 is | 2 | | $4,157,000.
| 3 | | Notwithstanding any other provision of this Article, the | 4 | | total required State
contribution for State fiscal year 2007 is | 5 | | $5,220,300.
| 6 | | For each of State fiscal years 2008 through 2009, the State | 7 | | contribution to
the System, as a percentage of the applicable | 8 | | employee payroll, shall be
increased in equal annual increments | 9 | | from the required State contribution for State fiscal year | 10 | | 2007, so that by State fiscal year 2011, the
State is | 11 | | contributing at the rate otherwise required under this Section.
| 12 | | Notwithstanding any other provision of this Article, the | 13 | | total required State contribution for State fiscal year 2010 is | 14 | | $10,454,000 and shall be made from the proceeds of bonds sold | 15 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 16 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 17 | | expenses determined by the System's share of total bond | 18 | | proceeds, (ii) any amounts received from the General Revenue | 19 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 20 | | proceeds due to the issuance of discounted bonds, if | 21 | | applicable. | 22 | | Notwithstanding any other provision of this Article, the
| 23 | | total required State contribution for State fiscal year 2011 is
| 24 | | the amount recertified by the System on or before April 1, 2011 | 25 | | pursuant to Section 2-134 and shall be made from the proceeds | 26 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
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| 1 | | the General
Obligation Bond Act, less (i) the pro rata share of | 2 | | bond sale
expenses determined by the System's share of total | 3 | | bond
proceeds, (ii) any amounts received from the General | 4 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 5 | | bond
proceeds due to the issuance of discounted bonds, if
| 6 | | applicable. | 7 | | Beginning in State fiscal year 2045, the minimum State | 8 | | contribution for each fiscal year shall be the amount needed to | 9 | | maintain the total assets of the System at 100% of the total | 10 | | actuarial liabilities of the System.
| 11 | | Amounts received by the System pursuant to Section 25 of | 12 | | the Budget Stabilization Act or Section 8.12 of the State | 13 | | Finance Act in any fiscal year do not reduce and do not | 14 | | constitute payment of any portion of the minimum State | 15 | | contribution required under this Article in that fiscal year. | 16 | | Such amounts shall not reduce, and shall not be included in the | 17 | | calculation of, the required State contributions under this | 18 | | Article in any future year until the System has reached a | 19 | | funding ratio of at least 100%. A reference in this Article to | 20 | | the "required State contribution" or any substantially similar | 21 | | term does not include or apply to any amounts payable to the | 22 | | System under Section 25 of the Budget Stabilization Act.
| 23 | | Notwithstanding any other provision of this Section, the | 24 | | required State
contribution for State fiscal year 2005 and for | 25 | | fiscal year 2008 and each fiscal year thereafter through State | 26 | | fiscal year 2014, as
calculated under this Section and
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| 1 | | certified under Section 2-134, shall not exceed an amount equal | 2 | | to (i) the
amount of the required State contribution that would | 3 | | have been calculated under
this Section for that fiscal year if | 4 | | the System had not received any payments
under subsection (d) | 5 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | 6 | | the portion of the State's total debt service payments for that | 7 | | fiscal
year on the bonds issued in fiscal year 2003 for the | 8 | | purposes of that Section 7.2, as determined
and certified by | 9 | | the Comptroller, that is the same as the System's portion of
| 10 | | the total moneys distributed under subsection (d) of Section | 11 | | 7.2 of the General
Obligation Bond Act. In determining this | 12 | | maximum for State fiscal years 2008 through 2010, however, the | 13 | | amount referred to in item (i) shall be increased, as a | 14 | | percentage of the applicable employee payroll, in equal | 15 | | increments calculated from the sum of the required State | 16 | | contribution for State fiscal year 2007 plus the applicable | 17 | | portion of the State's total debt service payments for fiscal | 18 | | year 2007 on the bonds issued in fiscal year 2003 for the | 19 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 20 | | that, by State fiscal year 2011, the
State is contributing at | 21 | | the rate otherwise required under this Section.
| 22 | | (d) For purposes of determining the required State | 23 | | contribution to the System, the value of the System's assets | 24 | | shall be equal to the actuarial value of the System's assets, | 25 | | which shall be calculated as follows: | 26 | | As of June 30, 2008, the actuarial value of the System's |
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| 1 | | assets shall be equal to the market value of the assets as of | 2 | | that date. In determining the actuarial value of the System's | 3 | | assets for fiscal years after June 30, 2008, 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 | | (e) For purposes of determining the required State | 8 | | contribution to the system for a particular year, the actuarial | 9 | | value of assets shall be assumed to earn a rate of return equal | 10 | | to the system's actuarially assumed rate of return. | 11 | | (Source: P.A. 97-813, eff. 7-13-12; 98-599, eff. 6-1-14 .)
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