Full Text of SB2686 97th General Assembly
SB2686 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2686 Introduced 1/18/2012, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
| | Amends the State Employee 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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| 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 14-131 as follows:
| 6 | | (40 ILCS 5/14-131)
| 7 | | Sec. 14-131. Contributions by State.
| 8 | | (a) The The State shall make contributions to the System by | 9 | | appropriations of
amounts which, together with other employer | 10 | | contributions from trust, federal,
and other funds, employee | 11 | | contributions, investment income, and other income,
will be | 12 | | sufficient to meet the cost of maintaining and administering | 13 | | the System
on a 90% funded basis in accordance with actuarial | 14 | | recommendations.
| 15 | | For the purposes of this Section and Section 14-135.08, | 16 | | references to State
contributions refer only to employer | 17 | | contributions and do not include employee
contributions that | 18 | | are picked up or otherwise paid by the State or a
department on | 19 | | behalf of the employee.
| 20 | | (b) The Board shall determine the total amount of State | 21 | | contributions
required for each fiscal year on the basis of the | 22 | | actuarial tables and other
assumptions adopted by the Board, | 23 | | using the formula in subsection (e).
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| 1 | | The Board shall also determine a State contribution rate | 2 | | for each fiscal
year, expressed as a percentage of payroll, | 3 | | based on the total required State
contribution for that fiscal | 4 | | year (less the amount received by the System from
| 5 | | appropriations under Section 8.12 of the State Finance Act and | 6 | | Section 1 of the
State Pension Funds Continuing Appropriation | 7 | | Act, if any, for the fiscal year
ending on the June 30 | 8 | | immediately preceding the applicable November 15
certification | 9 | | deadline), the estimated payroll (including all forms of
| 10 | | compensation) for personal services rendered by eligible | 11 | | employees, and the
recommendations of the actuary.
| 12 | | For the purposes of this Section and Section 14.1 of the | 13 | | State Finance Act,
the term "eligible employees" includes | 14 | | employees who participate in the System,
persons who may elect | 15 | | to participate in the System but have not so elected,
persons | 16 | | who are serving a qualifying period that is required for | 17 | | participation,
and annuitants employed by a department as | 18 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 19 | | (c) Contributions shall be made by the several departments | 20 | | for each pay
period by warrants drawn by the State Comptroller | 21 | | against their respective
funds or appropriations based upon | 22 | | vouchers stating the amount to be so
contributed. These amounts | 23 | | shall be based on the full rate certified by the
Board under | 24 | | Section 14-135.08 for that fiscal year.
From the effective date | 25 | | of this amendatory Act of the 93rd General
Assembly through the | 26 | | payment of the final payroll from fiscal year 2004
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| 1 | | appropriations, the several departments shall not make | 2 | | contributions
for the remainder of fiscal year 2004 but shall | 3 | | instead make payments
as required under subsection (a-1) of | 4 | | Section 14.1 of the State Finance Act.
The several departments | 5 | | shall resume those contributions at the commencement of
fiscal | 6 | | year 2005.
| 7 | | (c-1) Notwithstanding subsection (c) of this Section, for | 8 | | fiscal years 2010 and 2012 only, contributions by the several | 9 | | departments are not required to be made for General Revenue | 10 | | Funds payrolls processed by the Comptroller. Payrolls paid by | 11 | | the several departments from all other State funds must | 12 | | continue to be processed pursuant to subsection (c) of this | 13 | | Section. | 14 | | (c-2) For State fiscal years 2010 and 2012 only, on or as | 15 | | soon as possible after the 15th day of each month, the Board | 16 | | shall submit vouchers for payment of State contributions to the | 17 | | System, in a total monthly amount of one-twelfth of the fiscal | 18 | | year General Revenue Fund contribution as certified by the | 19 | | System pursuant to Section 14-135.08 of the Illinois Pension | 20 | | Code. | 21 | | (d) If an employee is paid from trust funds or federal | 22 | | funds, the
department or other employer shall pay employer | 23 | | contributions from those funds
to the System at the certified | 24 | | rate, unless the terms of the trust or the
federal-State | 25 | | agreement preclude the use of the funds for that purpose, in
| 26 | | which case the required employer contributions shall be paid by |
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| 1 | | the State.
From the effective date of this amendatory
Act of | 2 | | the 93rd General Assembly through the payment of the final
| 3 | | payroll from fiscal year 2004 appropriations, the department or | 4 | | other
employer shall not pay contributions for the remainder of | 5 | | fiscal year
2004 but shall instead make payments as required | 6 | | under subsection (a-1) of
Section 14.1 of the State Finance | 7 | | Act. The department or other employer shall
resume payment of
| 8 | | contributions at the commencement of fiscal year 2005.
| 9 | | (e) For State fiscal years 2012 through 2045, the minimum | 10 | | contribution
to the System to be made by the State for each | 11 | | fiscal year shall be an amount
determined by the System to be | 12 | | sufficient to bring the total assets of the
System up to 90% of | 13 | | the total actuarial liabilities of the System by the end
of | 14 | | State fiscal year 2045. In making these determinations, the | 15 | | required State
contribution shall be calculated each year as a | 16 | | level percentage of payroll
over the years remaining to and | 17 | | including fiscal year 2045 and shall be
determined under the | 18 | | projected unit credit actuarial cost method.
| 19 | | For State fiscal years 1996 through 2005, the State | 20 | | contribution to
the System, as a percentage of the applicable | 21 | | employee payroll, shall be
increased in equal annual increments | 22 | | so that by State fiscal year 2011, the
State is contributing at | 23 | | the rate required under this Section; except that
(i) for State | 24 | | fiscal year 1998, for all purposes of this Code and any other
| 25 | | law of this State, the certified percentage of the applicable | 26 | | employee payroll
shall be 5.052% for employees earning eligible |
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| 1 | | creditable service under Section
14-110 and 6.500% for all | 2 | | other employees, notwithstanding any contrary
certification | 3 | | made under Section 14-135.08 before the effective date of this
| 4 | | amendatory Act of 1997, and (ii)
in the following specified | 5 | | State fiscal years, the State contribution to
the System shall | 6 | | not be less than the following indicated percentages of the
| 7 | | applicable employee payroll, even if the indicated percentage | 8 | | will produce a
State contribution in excess of the amount | 9 | | otherwise required under this
subsection and subsection (a):
| 10 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 11 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 12 | | Notwithstanding any other provision of this Article, the | 13 | | total required State
contribution to the System for State | 14 | | fiscal year 2006 is $203,783,900.
| 15 | | Notwithstanding any other provision of this Article, the | 16 | | total required State
contribution to the System for State | 17 | | fiscal year 2007 is $344,164,400.
| 18 | | For each of State fiscal years 2008 through 2009, the State | 19 | | contribution to
the System, as a percentage of the applicable | 20 | | employee payroll, shall be
increased in equal annual increments | 21 | | from the required State contribution for State fiscal year | 22 | | 2007, so that by State fiscal year 2011, the
State is | 23 | | contributing at the rate otherwise required under this Section.
| 24 | | Notwithstanding any other provision of this Article, the | 25 | | total required State General Revenue Fund contribution for | 26 | | State fiscal year 2010 is $723,703,100 and shall be made from |
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| 1 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 2 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 3 | | pro rata share of bond sale expenses determined by the System's | 4 | | share of total bond proceeds, (ii) any amounts received from | 5 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 6 | | reduction in bond proceeds due to the issuance of discounted | 7 | | bonds, if applicable. | 8 | | Notwithstanding any other provision of this Article, the
| 9 | | total required State General Revenue Fund contribution for
| 10 | | State fiscal year 2011 is the amount recertified by the System | 11 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 12 | | shall be made from
the proceeds of bonds sold in fiscal year | 13 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 14 | | Act, less (i) the
pro rata share of bond sale expenses | 15 | | determined by the System's
share of total bond proceeds, (ii) | 16 | | any amounts received from
the General Revenue Fund in fiscal | 17 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 18 | | issuance of discounted
bonds, if applicable. | 19 | | Beginning in State fiscal year 2046, the minimum State | 20 | | contribution for
each fiscal year shall be the amount needed to | 21 | | maintain the total assets of
the System at 90% of the total | 22 | | actuarial liabilities of the System.
| 23 | | Amounts received by the System pursuant to Section 25 of | 24 | | the Budget Stabilization Act or Section 8.12 of the State | 25 | | Finance Act in any fiscal year do not reduce and do not | 26 | | constitute payment of any portion of the minimum State |
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| 1 | | contribution required under this Article in that fiscal year. | 2 | | Such amounts shall not reduce, and shall not be included in the | 3 | | calculation of, the required State contributions under this | 4 | | Article in any future year until the System has reached a | 5 | | funding ratio of at least 90%. A reference in this Article to | 6 | | the "required State contribution" or any substantially similar | 7 | | term does not include or apply to any amounts payable to the | 8 | | System under Section 25 of the Budget Stabilization Act.
| 9 | | Notwithstanding any other provision of this Section, the | 10 | | required State
contribution for State fiscal year 2005 and for | 11 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 12 | | under this Section and
certified under Section 14-135.08, shall | 13 | | not exceed an amount equal to (i) the
amount of the required | 14 | | State contribution that would have been calculated under
this | 15 | | Section for that fiscal year if the System had not received any | 16 | | payments
under subsection (d) of Section 7.2 of the General | 17 | | Obligation Bond Act, minus
(ii) the portion of the State's | 18 | | total debt service payments for that fiscal
year on the bonds | 19 | | issued in fiscal year 2003 for the purposes of that Section | 20 | | 7.2, as determined
and certified by the Comptroller, that is | 21 | | the same as the System's portion of
the total moneys | 22 | | distributed under subsection (d) of Section 7.2 of the General
| 23 | | Obligation Bond Act. In determining this maximum for State | 24 | | fiscal years 2008 through 2010, however, the amount referred to | 25 | | in item (i) shall be increased, as a percentage of the | 26 | | applicable employee payroll, in equal increments calculated |
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| 1 | | from the sum of the required State contribution for State | 2 | | fiscal year 2007 plus the applicable portion of the State's | 3 | | total debt service payments for fiscal year 2007 on the bonds | 4 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 5 | | the General
Obligation Bond Act, so that, by State fiscal year | 6 | | 2011, the
State is contributing at the rate otherwise required | 7 | | under this Section.
| 8 | | (f) After the submission of all payments for eligible | 9 | | employees
from personal services line items in fiscal year 2004 | 10 | | have been made,
the Comptroller shall provide to the System a | 11 | | certification of the sum
of all fiscal year 2004 expenditures | 12 | | for personal services that would
have been covered by payments | 13 | | to the System under this Section if the
provisions of this | 14 | | amendatory Act of the 93rd General Assembly had not been
| 15 | | enacted. Upon
receipt of the certification, the System shall | 16 | | determine the amount
due to the System based on the full rate | 17 | | certified by the Board under
Section 14-135.08 for fiscal year | 18 | | 2004 in order to meet the State's
obligation under this | 19 | | Section. The System shall compare this amount
due to the amount | 20 | | received by the System in fiscal year 2004 through
payments | 21 | | under this Section and under Section 6z-61 of the State Finance | 22 | | Act.
If the amount
due is more than the amount received, the | 23 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 24 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 25 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 26 | | Continuing Appropriation Act. If the amount due is less than |
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| 1 | | the
amount received, the
difference shall be termed the "Fiscal | 2 | | Year 2004 Overpayment" for purposes of
this Section, and the | 3 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 4 | | the Pension Contribution Fund as soon as practicable
after the | 5 | | certification.
| 6 | | (g) For purposes of determining the required State | 7 | | contribution to the System, the value of the System's assets | 8 | | shall be equal to the actuarial value of the System's assets, | 9 | | which shall be calculated as follows: | 10 | | As of June 30, 2008, the actuarial value of the System's | 11 | | assets shall be equal to the market value of the assets as of | 12 | | that date. In determining the actuarial value of the System's | 13 | | assets for fiscal years after June 30, 2008, any actuarial | 14 | | gains or losses from investment return incurred in a fiscal | 15 | | year shall be recognized in equal annual amounts over the | 16 | | 5-year period following that fiscal year. | 17 | | (h) For purposes of determining the required State | 18 | | contribution to the System for a particular year, the actuarial | 19 | | value of assets shall be assumed to earn a rate of return equal | 20 | | to the System's actuarially assumed rate of return. | 21 | | (i) After the submission of all payments for eligible | 22 | | employees from personal services line items paid from the | 23 | | General Revenue Fund in fiscal year 2010 have been made, the | 24 | | Comptroller shall provide to the System a certification of the | 25 | | sum of all fiscal year 2010 expenditures for personal services | 26 | | that would have been covered by payments to the System under |
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| 1 | | this Section if the provisions of this amendatory Act of the | 2 | | 96th General Assembly had not been enacted. Upon receipt of the | 3 | | certification, the System shall determine the amount due to the | 4 | | System based on the full rate certified by the Board under | 5 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 6 | | State's obligation under this Section. The System shall compare | 7 | | this amount due to the amount received by the System in fiscal | 8 | | year 2010 through payments under this Section. If the amount | 9 | | due is more than the amount received, the difference shall be | 10 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 11 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 12 | | under Section 1.2 of the State Pension Funds Continuing | 13 | | Appropriation Act. If the amount due is less than the amount | 14 | | received, the difference shall be termed the "Fiscal Year 2010 | 15 | | Overpayment" for purposes of this Section, and the Fiscal Year | 16 | | 2010 Overpayment shall be repaid by the System to the General | 17 | | Revenue Fund as soon as practicable after the certification. | 18 | | (j) After the submission of all payments for eligible | 19 | | employees from personal services line items paid from the | 20 | | General Revenue Fund in fiscal year 2011 have been made, the | 21 | | Comptroller shall provide to the System a certification of the | 22 | | sum of all fiscal year 2011 expenditures for personal services | 23 | | that would have been covered by payments to the System under | 24 | | this Section if the provisions of this amendatory Act of the | 25 | | 96th General Assembly had not been enacted. Upon receipt of the | 26 | | certification, the System shall determine the amount due to the |
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| 1 | | System based on the full rate certified by the Board under | 2 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 3 | | State's obligation under this Section. The System shall compare | 4 | | this amount due to the amount received by the System in fiscal | 5 | | year 2011 through payments under this Section. If the amount | 6 | | due is more than the amount received, the difference shall be | 7 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 8 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 9 | | under Section 1.2 of the State Pension Funds Continuing | 10 | | Appropriation Act. If the amount due is less than the amount | 11 | | received, the difference shall be termed the "Fiscal Year 2011 | 12 | | Overpayment" for purposes of this Section, and the Fiscal Year | 13 | | 2011 Overpayment shall be repaid by the System to the General | 14 | | Revenue Fund as soon as practicable after the certification. | 15 | | (k) For fiscal year 2012 only, after the submission of all | 16 | | payments for eligible employees from personal services line | 17 | | items paid from the General Revenue Fund in the fiscal year | 18 | | have been made, the Comptroller shall provide to the System a | 19 | | certification of the sum of all expenditures in the fiscal year | 20 | | for personal services. Upon receipt of the certification, the | 21 | | System shall determine the amount due to the System based on | 22 | | the full rate certified by the Board under Section 14-135.08 | 23 | | for the fiscal year in order to meet the State's obligation | 24 | | under this Section. The System shall compare this amount due to | 25 | | the amount received by the System for the fiscal year. If the | 26 | | amount due is more than the amount received, the difference |
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| 1 | | shall be termed the "Fiscal Year Shortfall" for purposes of | 2 | | this Section, and the Fiscal Year Shortfall shall be satisfied | 3 | | under Section 1.2 of the State Pension Funds Continuing | 4 | | Appropriation Act. If the amount due is less than the amount | 5 | | received, the difference shall be termed the "Fiscal Year | 6 | | Overpayment" for purposes of this Section, and the Fiscal Year | 7 | | Overpayment shall be repaid by the System to the General | 8 | | Revenue Fund as soon as practicable after the certification. | 9 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | 10 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | 11 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11.)
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