Full Text of SB2794 95th General Assembly
SB2794 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2794
Introduced 2/15/2008, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/14-131 |
from Ch. 108 1/2, par. 14-131 |
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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 | |
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A BILL FOR
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SB2794 |
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LRB095 19063 AMC 45254 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 14-131 as follows:
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| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
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| Sec. 14-131. Contributions by State.
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| (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.
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| 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.
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| (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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LRB095 19063 AMC 45254 b |
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| 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
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| 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
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| compensation) for personal services rendered by eligible | 11 |
| employees, and the
recommendations of the actuary.
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| 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.
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| (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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LRB095 19063 AMC 45254 b |
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| 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.
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| (d) If an employee is paid from trust funds or federal | 8 |
| funds, the
department or other employer shall pay employer | 9 |
| contributions from those funds
to the System at the certified | 10 |
| rate, unless the terms of the trust or the
federal-State | 11 |
| agreement preclude the use of the funds for that purpose, in
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| which case the required employer contributions shall be paid by | 13 |
| the State.
From the effective date of this amendatory
Act of | 14 |
| the 93rd General Assembly through the payment of the final
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| payroll from fiscal year 2004 appropriations, the department or | 16 |
| other
employer shall not pay contributions for the remainder of | 17 |
| fiscal year
2004 but shall instead make payments as required | 18 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 19 |
| Act. The department or other employer shall
resume payment of
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| contributions at the commencement of fiscal year 2005.
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| (e) For State fiscal years 2011 through 2045, the minimum | 22 |
| contribution
to the System to be made by the State for each | 23 |
| fiscal year shall be an amount
determined by the System to be | 24 |
| sufficient to bring the total assets of the
System up to 90% of | 25 |
| the total actuarial liabilities of the System by the end
of | 26 |
| State fiscal year 2045. In making these determinations, the |
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| required State
contribution shall be calculated each year as a | 2 |
| level percentage of payroll
over the years remaining to and | 3 |
| including fiscal year 2045 and shall be
determined under the | 4 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 6 |
| contribution to
the System, as a percentage of the applicable | 7 |
| employee payroll, shall be
increased in equal annual increments | 8 |
| so that by State fiscal year 2011, the
State is contributing at | 9 |
| the rate required under this Section; except that
(i) for State | 10 |
| fiscal year 1998, for all purposes of this Code and any other
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| law of this State, the certified percentage of the applicable | 12 |
| employee payroll
shall be 5.052% for employees earning eligible | 13 |
| creditable service under Section
14-110 and 6.500% for all | 14 |
| other employees, notwithstanding any contrary
certification | 15 |
| made under Section 14-135.08 before the effective date of this
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| amendatory Act of 1997, and (ii)
in the following specified | 17 |
| State fiscal years, the State contribution to
the System shall | 18 |
| not be less than the following indicated percentages of the
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| applicable employee payroll, even if the indicated percentage | 20 |
| will produce a
State contribution in excess of the amount | 21 |
| otherwise required under this
subsection and subsection (a):
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| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 23 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
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| Notwithstanding any other provision of this Article, the | 25 |
| total required State
contribution to the System for State | 26 |
| fiscal year 2006 is $203,783,900.
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| Notwithstanding any other provision of this Article, the | 2 |
| total required State
contribution to the System for State | 3 |
| fiscal year 2007 is $344,164,400.
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| For each of State fiscal years 2008 through 2010, the State | 5 |
| contribution to
the System, as a percentage of the applicable | 6 |
| employee payroll, shall be
increased in equal annual increments | 7 |
| from the required State contribution for State fiscal year | 8 |
| 2007, so that by State fiscal year 2011, the
State is | 9 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 11 |
| contribution for
each fiscal year shall be the amount needed to | 12 |
| maintain the total assets of
the System at 90% of the total | 13 |
| actuarial liabilities of the System.
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| Amounts received by the System pursuant to Section 25 of | 15 |
| the Budget Stabilization Act in any fiscal year do not reduce | 16 |
| and do not constitute payment of any portion of the minimum | 17 |
| State contribution required under this Article in that fiscal | 18 |
| year. Such amounts shall not reduce, and shall not be included | 19 |
| in the calculation of, the required State contributions under | 20 |
| this Article in any future year until the System has reached a | 21 |
| funding ratio of at least 90%. A reference in this Article to | 22 |
| the "required State contribution" or any substantially similar | 23 |
| term does not include or apply to any amounts payable to the | 24 |
| System under Section 25 of the Budget Stabilization Act.
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| Notwithstanding any other provision of this Section, the | 26 |
| required State
contribution for State fiscal year 2005 and for |
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| fiscal year 2008 and each fiscal year thereafter, as
calculated | 2 |
| under this Section and
certified under Section 14-135.08, shall | 3 |
| not exceed an amount equal to (i) the
amount of the required | 4 |
| State contribution that would have been calculated under
this | 5 |
| Section for that fiscal year if the System had not received any | 6 |
| payments
under subsection (d) of Section 7.2 of the General | 7 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 8 |
| total debt service payments for that fiscal
year on the bonds | 9 |
| issued for the purposes of that Section 7.2, as determined
and | 10 |
| certified by the Comptroller, that is the same as the System's | 11 |
| portion of
the total moneys distributed under subsection (d) of | 12 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 13 |
| this maximum for State fiscal years 2008 through 2010, however, | 14 |
| the amount referred to in item (i) shall be increased, as a | 15 |
| percentage of the applicable employee payroll, in equal | 16 |
| increments calculated from the sum of the required State | 17 |
| contribution for State fiscal year 2007 plus the applicable | 18 |
| portion of the State's total debt service payments for fiscal | 19 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 20 |
| of the General
Obligation Bond Act, so that, by State fiscal | 21 |
| year 2011, the
State is contributing at the rate otherwise | 22 |
| required under this Section.
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| (f) After the submission of all payments for eligible | 24 |
| employees
from personal services line items in fiscal year 2004 | 25 |
| have been made,
the Comptroller shall provide to the System a | 26 |
| certification of the sum
of all fiscal year 2004 expenditures |
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| for personal services that would
have been covered by payments | 2 |
| to the System under this Section if the
provisions of this | 3 |
| amendatory Act of the 93rd General Assembly had not been
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| enacted. Upon
receipt of the certification, the System shall | 5 |
| determine the amount
due to the System based on the full rate | 6 |
| certified by the Board under
Section 14-135.08 for fiscal year | 7 |
| 2004 in order to meet the State's
obligation under this | 8 |
| Section. The System shall compare this amount
due to the amount | 9 |
| received by the System in fiscal year 2004 through
payments | 10 |
| under this Section and under Section 6z-61 of the State Finance | 11 |
| Act.
If the amount
due is more than the amount received, the | 12 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 13 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 14 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 15 |
| Continuing Appropriation Act. If the amount due is less than | 16 |
| the
amount received, the
difference shall be termed the "Fiscal | 17 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 18 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 19 |
| the Pension Contribution Fund as soon as practicable
after the | 20 |
| certification.
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| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 22 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
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