Full Text of HB4774 94th General Assembly
HB4774 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB4774
Introduced 1/18/2006, by Rep. Naomi D. Jakobsson SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/15-155 |
from Ch. 108 1/2, par. 15-155 |
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Amends the State Universities Article of the Illinois Pension Code. Makes a technical change in a Section concerning employer contributions.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4774 |
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LRB094 18076 AMC 53381 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 15-155 as follows:
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| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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| Sec. 15-155. Employer contributions.
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| (a) The
The State of Illinois shall make contributions by | 9 |
| appropriations of
amounts which, together with the other | 10 |
| employer contributions from trust,
federal, and other funds, | 11 |
| employee contributions, income from investments,
and other | 12 |
| income of this System, will be sufficient to meet the cost of
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| maintaining and administering the System on a 90% funded basis | 14 |
| in accordance
with actuarial recommendations.
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| The Board shall determine the amount of State contributions | 16 |
| required for
each fiscal year on the basis of the actuarial | 17 |
| tables and other assumptions
adopted by the Board and the | 18 |
| recommendations of the actuary, using the formula
in subsection | 19 |
| (a-1).
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| (a-1) For State fiscal years 2011 through 2045, 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 |
| sufficient to bring the total assets of the
System up to 90% of | 24 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 26 |
| required State
contribution shall be calculated each year as a | 27 |
| level percentage of payroll
over the years remaining to and | 28 |
| including fiscal year 2045 and shall be
determined under the | 29 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 31 |
| contribution to
the System, as a percentage of the applicable | 32 |
| employee payroll, shall be
increased in equal annual increments |
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HB4774 |
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LRB094 18076 AMC 53381 b |
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| so that by State fiscal year 2011, the
State is contributing at | 2 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2006 is | 5 |
| $166,641,900.
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| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution for State fiscal year 2007 is | 8 |
| $252,064,100.
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| For each of State fiscal years 2008 through 2010, the State | 10 |
| contribution to
the System, as a percentage of the applicable | 11 |
| employee payroll, shall be
increased in equal annual increments | 12 |
| from the required State contribution for State fiscal year | 13 |
| 2007, so that by State fiscal year 2011, the
State is | 14 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 16 |
| contribution for
each fiscal year shall be the amount needed to | 17 |
| maintain the total assets of
the System at 90% of the total | 18 |
| actuarial liabilities of the System.
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| Notwithstanding any other provision of this Section, the | 20 |
| required State
contribution for State fiscal year 2005 and for | 21 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 22 |
| under this Section and
certified under Section 15-165, shall | 23 |
| not exceed an amount equal to (i) the
amount of the required | 24 |
| State contribution that would have been calculated under
this | 25 |
| Section for that fiscal year if the System had not received any | 26 |
| payments
under subsection (d) of Section 7.2 of the General | 27 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 28 |
| total debt service payments for that fiscal
year on the bonds | 29 |
| issued for the purposes of that Section 7.2, as determined
and | 30 |
| certified by the Comptroller, that is the same as the System's | 31 |
| portion of
the total moneys distributed under subsection (d) of | 32 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 33 |
| this maximum for State fiscal years 2008 through 2010, however, | 34 |
| the amount referred to in item (i) shall be increased, as a | 35 |
| percentage of the applicable employee payroll, in equal | 36 |
| increments calculated from the sum of the required State |
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LRB094 18076 AMC 53381 b |
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| contribution for State fiscal year 2007 plus the applicable | 2 |
| portion of the State's total debt service payments for fiscal | 3 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 4 |
| of the General
Obligation Bond Act, so that, by State fiscal | 5 |
| year 2011, the
State is contributing at the rate otherwise | 6 |
| required under this Section.
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| (b) If an employee is paid from trust or federal funds, the | 8 |
| employer
shall pay to the Board contributions from those funds | 9 |
| which are
sufficient to cover the accruing normal costs on | 10 |
| behalf of the employee.
However, universities having employees | 11 |
| who are compensated out of local
auxiliary funds, income funds, | 12 |
| or service enterprise funds are not required
to pay such | 13 |
| contributions on behalf of those employees. The local auxiliary
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| funds, income funds, and service enterprise funds of | 15 |
| universities shall not be
considered trust funds for the | 16 |
| purpose of this Article, but funds of alumni
associations, | 17 |
| foundations, and athletic associations which are affiliated | 18 |
| with
the universities included as employers under this Article | 19 |
| and other employers
which do not receive State appropriations | 20 |
| are considered to be trust funds for
the purpose of this | 21 |
| Article.
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| (b-1) The City of Urbana and the City of Champaign shall | 23 |
| each make
employer contributions to this System for their | 24 |
| respective firefighter
employees who participate in this | 25 |
| System pursuant to subsection (h) of Section
15-107. The rate | 26 |
| of contributions to be made by those municipalities shall
be | 27 |
| determined annually by the Board on the basis of the actuarial | 28 |
| assumptions
adopted by the Board and the recommendations of the | 29 |
| actuary, and shall be
expressed as a percentage of salary for | 30 |
| each such employee. The Board shall
certify the rate to the | 31 |
| affected municipalities as soon as may be practical.
The | 32 |
| employer contributions required under this subsection shall be | 33 |
| remitted by
the municipality to the System at the same time and | 34 |
| in the same manner as
employee contributions.
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| (c) Through State fiscal year 1995: The total employer | 36 |
| contribution shall
be apportioned among the various funds of |
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| the State and other employers,
whether trust, federal, or other | 2 |
| funds, in accordance with actuarial procedures
approved by the | 3 |
| Board. State of Illinois contributions for employers receiving
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| State appropriations for personal services shall be payable | 5 |
| from appropriations
made to the employers or to the System. The | 6 |
| contributions for Class I
community colleges covering earnings | 7 |
| other than those paid from trust and
federal funds, shall be | 8 |
| payable solely from appropriations to the Illinois
Community | 9 |
| College Board or the System for employer contributions.
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| (d) Beginning in State fiscal year 1996, the required State | 11 |
| contributions
to the System shall be appropriated directly to | 12 |
| the System and shall be payable
through vouchers issued in | 13 |
| accordance with subsection (c) of Section 15-165, except as | 14 |
| provided in subsection (g).
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| (e) The State Comptroller shall draw warrants payable to | 16 |
| the System upon
proper certification by the System or by the | 17 |
| employer in accordance with the
appropriation laws and this | 18 |
| Code.
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| (f) Normal costs under this Section means liability for
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| pensions and other benefits which accrues to the System because | 21 |
| of the
credits earned for service rendered by the participants | 22 |
| during the
fiscal year and expenses of administering the | 23 |
| System, but shall not
include the principal of or any | 24 |
| redemption premium or interest on any bonds
issued by the Board | 25 |
| or any expenses incurred or deposits required in
connection | 26 |
| therewith.
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| (g) If the amount of a participant's earnings for any | 28 |
| academic year used to determine the final rate of earnings | 29 |
| exceeds the amount of his or her earnings with the same | 30 |
| employer for the previous academic year by more than 6%, the | 31 |
| participant's employer shall pay to the System, in addition to | 32 |
| all other payments required under this Section and in | 33 |
| accordance with guidelines established by the System, the | 34 |
| present value of the increase in benefits resulting from the | 35 |
| portion of the increase in earnings that is in excess of 6%. | 36 |
| This present value shall be computed by the System on the basis |
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LRB094 18076 AMC 53381 b |
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| of the actuarial assumptions and tables used in the most recent | 2 |
| actuarial valuation of the System that is available at the time | 3 |
| of the computation. The employer contributions required under | 4 |
| this subsection (g) shall be paid in the form of a lump sum | 5 |
| within 30 days after receipt of the bill after the participant | 6 |
| begins receiving benefits under this Article.
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| The provisions of this subsection (g) do not apply to | 8 |
| earnings increases paid to participants under contracts or | 9 |
| collective bargaining agreements entered into, amended, or | 10 |
| renewed before the effective date of this amendatory Act of the | 11 |
| 94th General Assembly.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
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