Full Text of SB0005 100th General Assembly
SB0005 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB0005 Introduced 1/11/2017, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/17-127 | from Ch. 108 1/2, par. 17-127 | 40 ILCS 15/1.1 | |
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Amends the Chicago Teacher Article of the Illinois Pension Code. Requires the State to contribute to the Fund $215,200,000 for fiscal year 2017 and $221,300,000 for fiscal year 2018; includes provisions for certifications and monthly payments by voucher. Provides that beginning in fiscal year 2019, the State shall contribute an amount equal to the employer normal cost for that fiscal year. Amends the State Pension Funds Continuing Appropriation Act. Provides for a continuing appropriation to the Public School Teachers' Pension and Retirement Fund of Chicago, on a continuing monthly basis, of the amount, if any, by which the total available amount of all other State appropriations to that Retirement Fund for the payment of certain State contributions is less than the total amount of the vouchers for required State contributions lawfully submitted by the Fund for that month under applicable provisions of the Illinois Pension Code. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13 of the 100th General Assembly become law.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB0005 | | LRB100 06247 RPS 16284 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 17-127 as follows:
| 6 | | (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
| 7 | | Sec. 17-127. Financing; revenues for the Fund.
| 8 | | (a) The revenues for the Fund shall consist of: (1) amounts | 9 | | paid into
the Fund by contributors thereto and from employer | 10 | | contributions and State
appropriations in accordance with this | 11 | | Article; (2) amounts contributed to the
Fund by an Employer; | 12 | | (3) amounts contributed to the Fund pursuant to any law
now in | 13 | | force or hereafter to be enacted; (4) contributions from any | 14 | | other
source; and (5) the earnings on investments.
| 15 | | (b) The General Assembly finds that for many years the | 16 | | State has
contributed to the Fund an annual amount that is | 17 | | between 20% and 30% of the
amount of the annual State | 18 | | contribution to the Article 16 retirement system,
and the | 19 | | General Assembly declares that it is its goal and intention to | 20 | | continue
this level of contribution to the Fund in the future.
| 21 | | (c) Beginning in State fiscal year 1999, the State shall | 22 | | include in its annual
contribution to the Fund an additional | 23 | | amount equal to 0.544% of the Fund's
total teacher payroll; |
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| 1 | | except that this additional contribution need not be
made in a | 2 | | fiscal year if the Board has certified in the previous fiscal | 3 | | year
that the Fund is at least 90% funded, based on actuarial | 4 | | determinations. These
additional State contributions are | 5 | | intended to offset a portion of the cost to
the Fund of the | 6 | | increases in retirement benefits resulting from this | 7 | | amendatory
Act of 1998.
| 8 | | (d) In addition to any other contribution required under | 9 | | this Article, including the contribution required under | 10 | | subsection (c), the State shall contribute to the Fund the | 11 | | following amounts: | 12 | | (1) For State fiscal year 2017, the State shall
| 13 | | contribute $215,200,000. | 14 | | (2) For State fiscal year 2018, the State shall | 15 | | contribute $221,300,000. | 16 | | (3) Beginning in State fiscal year 2019, the State
| 17 | | shall contribute for each fiscal year an amount to be
| 18 | | determined by the Fund, equal to the employer normal cost
| 19 | | for that fiscal year, plus the amount allowed pursuant to | 20 | | paragraph (3) of Section 17-142.1, to defray health | 21 | | insurance costs. | 22 | | (e) The Board shall determine the amount of State | 23 | | contributions required for each fiscal year on the basis of the | 24 | | actuarial tables and other assumptions adopted by the Board and | 25 | | the recommendations of the actuary. On or before November 1 of | 26 | | each year, beginning November 1, 2017, the Board shall submit |
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| 1 | | to the State Actuary, the Governor, and the General Assembly a | 2 | | proposed certification of the amount of the required State | 3 | | contribution to the Fund for the next fiscal year, along with | 4 | | all of the actuarial assumptions, calculations, and data upon | 5 | | which that proposed certification is based. | 6 | | On or before January 1 of each year, beginning January 1,
| 7 | | 2018, the State Actuary shall issue a preliminary report
| 8 | | concerning the proposed certification and identifying, if
| 9 | | necessary, recommended changes in actuarial assumptions that
| 10 | | the Board must consider before finalizing its certification of
| 11 | | the required State contributions. | 12 | | (f) On or before January 15, 2018 and each January 15 | 13 | | thereafter, the Board shall certify to the Governor and the
| 14 | | General Assembly the amount of the required State contribution
| 15 | | for the next fiscal year. The certification shall include a
| 16 | | copy of the actuarial recommendations upon which it is based
| 17 | | and shall specifically identify the Fund's projected employer
| 18 | | normal cost for that fiscal year. The Board's certification
| 19 | | must note any deviations from the State Actuary's recommended
| 20 | | changes, the reason or reasons for not following the State
| 21 | | Actuary's recommended changes, and the fiscal impact of not
| 22 | | following the State Actuary's recommended changes on the
| 23 | | required State contribution. | 24 | | For the purposes of this Article, including issuing | 25 | | vouchers, and for the purposes of subsection (h) of Section 1.1 | 26 | | of the State Pension Funds Continuing Appropriation Act, the |
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| 1 | | State contribution specified for State fiscal years 2017 and | 2 | | 2018 shall be deemed to have been certified, by operation of | 3 | | law and without official action by the Board or the State | 4 | | Actuary, in the amount provided in subsection (d) of this | 5 | | Section. | 6 | | (g) Beginning in State fiscal year 2017, on the 15th day of
| 7 | | each month, or as soon thereafter as may be practicable, the
| 8 | | Board shall submit vouchers for payment of State contributions | 9 | | to the Fund, in a total monthly amount of one-twelfth of the
| 10 | | required annual State contribution under subsection (d).
These | 11 | | vouchers shall be paid by the State Comptroller and
Treasurer | 12 | | by warrants drawn on the funds appropriated to the
Fund for | 13 | | that fiscal year. If in any month the amount remaining
| 14 | | unexpended from all other State appropriations to the Fund for
| 15 | | the applicable fiscal year is less than the amount lawfully
| 16 | | vouchered under this subsection, the difference shall be paid
| 17 | | from the Common School Fund under the continuing appropriation
| 18 | | authority provided in Section 1.1 of the State Pension Funds
| 19 | | Continuing Appropriation Act. | 20 | | (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98; | 21 | | 90-582, eff.
5-27-98; 90-655, eff. 7-30-98.)
| 22 | | Section 10. The State Pension Funds Continuing | 23 | | Appropriation Act is amended by changing Section 1.1 as | 24 | | follows:
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| 1 | | (40 ILCS 15/1.1)
| 2 | | Sec. 1.1. Appropriations to certain retirement systems.
| 3 | | (a) There is hereby appropriated from the General Revenue | 4 | | Fund to the
General Assembly Retirement System, on a continuing | 5 | | monthly basis, the amount,
if any, by which the total available | 6 | | amount of all other appropriations to that
retirement system | 7 | | for the payment of State contributions is less than the total
| 8 | | amount of the vouchers for required State contributions | 9 | | lawfully submitted by
the retirement system for that month | 10 | | under Section 2-134 of the Illinois
Pension Code.
| 11 | | (b) There is hereby appropriated from the General Revenue | 12 | | Fund to the
State Universities Retirement System, on a | 13 | | continuing monthly basis, the
amount, if any, by which the | 14 | | total available amount of all other appropriations
to that | 15 | | retirement system for the payment of State contributions, | 16 | | including
any deficiency in the required contributions of the | 17 | | optional
retirement program established under Section 15-158.2 | 18 | | of the Illinois Pension
Code,
is less than
the total amount of | 19 | | the vouchers for required State contributions lawfully
| 20 | | submitted by the retirement system for that month under Section | 21 | | 15-165 of the
Illinois Pension Code.
| 22 | | (c) There is hereby appropriated from the Common School | 23 | | Fund to the
Teachers' Retirement System of the State of | 24 | | Illinois,
on a continuing monthly basis, the amount, if any, by | 25 | | which the total
available amount of all other appropriations to | 26 | | that retirement system for the
payment of State contributions |
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| 1 | | is less than the total amount of the vouchers
for required | 2 | | State contributions lawfully submitted by the retirement | 3 | | system
for that month under Section 16-158 of the Illinois | 4 | | Pension Code.
| 5 | | (d) There is hereby appropriated from the General Revenue | 6 | | Fund to the Judges
Retirement System of Illinois, on a | 7 | | continuing monthly basis, the amount, if
any, by which the | 8 | | total available amount of all other appropriations to that
| 9 | | retirement system for the payment of State contributions is | 10 | | less than the total
amount of the vouchers for required State | 11 | | contributions lawfully submitted by
the retirement system for | 12 | | that month under Section 18-140 of the Illinois
Pension Code.
| 13 | | (e) The continuing appropriations provided by subsections | 14 | | (a), (b), (c), and (d) of this Section shall first
be available | 15 | | in State fiscal year 1996. The continuing appropriations | 16 | | provided by subsection (h) of this Section shall first
be | 17 | | available as provided in that subsection (h).
| 18 | | (f) For State fiscal year 2010 only, the continuing | 19 | | appropriations provided by this Section are equal to the amount | 20 | | certified by each System on or before December 31, 2008, less | 21 | | (i) the gross proceeds of the bonds sold in fiscal year 2010 | 22 | | under the authorization contained in subsection (a) of Section | 23 | | 7.2 of the General Obligation Bond Act and (ii) any amounts | 24 | | received from the State Pensions Fund. | 25 | | (g) For State fiscal year 2011 only, the continuing | 26 | | appropriations provided by this Section are equal to the amount
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| 1 | | certified by each System on or before April 1, 2011, less
(i) | 2 | | the gross proceeds of the bonds sold in fiscal year 2011
under | 3 | | the authorization contained in subsection (a) of Section
7.2 of | 4 | | the General Obligation Bond Act and (ii) any amounts
received | 5 | | from the State Pensions Fund. | 6 | | (h) There is hereby appropriated from the Common School | 7 | | Fund to the
Public School Teachers' Pension and Retirement Fund | 8 | | of Chicago,
on a continuing monthly basis, the amount, if any, | 9 | | by which the total
available amount of all other State | 10 | | appropriations to that Retirement Fund for the
payment of State | 11 | | contributions under subsection (d) of Section 17-127 of the | 12 | | Illinois Pension Code is less than the total amount of the | 13 | | vouchers
for required State contributions lawfully submitted | 14 | | by the Retirement Fund
for that month under that Section | 15 | | 17-127. | 16 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 17 | | 96-1511, eff. 1-27-11.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law, but this Act does not take effect at all unless | 20 | | Senate Bills 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12, and 13 of the | 21 | | 100th General Assembly become law. |
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