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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB0561
Introduced 2/6/2009, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/2-124 |
from Ch. 108 1/2, par. 2-124 |
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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 | |
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A BILL FOR
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SB0561 |
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LRB096 06585 AMC 16669 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 |
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| Section 2-124 as follows:
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| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| Sec. 2-124. Contributions by State.
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| (a) The
The State shall make contributions to the System by
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| appropriations of amounts which, together with the |
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| contributions of
participants, interest earned on investments, |
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| and other income
will meet the cost of maintaining and |
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| administering the System on a 90%
funded basis in accordance |
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| with actuarial recommendations. |
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| (b) The Board shall determine the amount of State
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| contributions required for each fiscal year on the basis of the
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| actuarial tables and other assumptions adopted by the Board and |
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| the
prescribed rate of interest, using the formula in |
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| subsection (c).
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| (c) For State fiscal years 2011 through 2045, the minimum |
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| contribution
to the System to be made by the State for each |
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| fiscal year shall be an amount
determined by the System to be |
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| sufficient to bring the total assets of the
System up to 90% of |
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| the total actuarial liabilities of the System by the end of
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SB0561 |
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LRB096 06585 AMC 16669 b |
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| State fiscal year 2045. In making these determinations, the |
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| required State
contribution shall be calculated each year as a |
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| level percentage of payroll
over the years remaining to and |
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| including fiscal year 2045 and shall be
determined under the |
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| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State |
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| contribution to
the System, as a percentage of the applicable |
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| employee payroll, shall be
increased in equal annual increments |
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| so that by State fiscal year 2011, the
State is contributing at |
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| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the |
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| total required State
contribution for State fiscal year 2006 is |
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| $4,157,000.
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| Notwithstanding any other provision of this Article, the |
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| total required State
contribution for State fiscal year 2007 is |
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| $5,220,300.
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| For each of State fiscal years 2008 through 2010, the State |
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| contribution to
the System, as a percentage of the applicable |
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| employee payroll, shall be
increased in equal annual increments |
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| from the required State contribution for State fiscal year |
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| 2007, so that by State fiscal year 2011, the
State is |
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| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State |
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| contribution for
each fiscal year shall be the amount needed to |
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| maintain the total assets of
the System at 90% of the total |
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| actuarial liabilities of the System.
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SB0561 |
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LRB096 06585 AMC 16669 b |
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| Amounts received by the System pursuant to Section 25 of |
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| the Budget Stabilization Act or Section 8.12 of the State |
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| Finance Act in any fiscal year do not reduce and do not |
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| constitute payment of any portion of the minimum State |
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| contribution required under this Article in that fiscal year. |
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| Such amounts shall not reduce, and shall not be included in the |
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| calculation of, the required State contributions under this |
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| Article in any future year until the System has reached a |
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| funding ratio of at least 90%. A reference in this Article to |
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| the "required State contribution" or any substantially similar |
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| term does not include or apply to any amounts payable to the |
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| System under Section 25 of the Budget Stabilization Act.
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| Notwithstanding any other provision of this Section, the |
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| required State
contribution for State fiscal year 2005 and for |
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| fiscal year 2008 and each fiscal year thereafter, as
calculated |
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| under this Section and
certified under Section 2-134, shall not |
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| exceed an amount equal to (i) the
amount of the required State |
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| contribution that would have been calculated under
this Section |
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| for that fiscal year if the System had not received any |
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| payments
under subsection (d) of Section 7.2 of the General |
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| Obligation Bond Act, minus
(ii) the portion of the State's |
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| total debt service payments for that fiscal
year on the bonds |
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| issued for the purposes of that Section 7.2, as determined
and |
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| certified by the Comptroller, that is the same as the System's |
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| portion of
the total moneys distributed under subsection (d) of |
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| Section 7.2 of the General
Obligation Bond Act. In determining |
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SB0561 |
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LRB096 06585 AMC 16669 b |
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| this maximum for State fiscal years 2008 through 2010, however, |
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| the amount referred to in item (i) shall be increased, as a |
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| percentage of the applicable employee payroll, in equal |
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| increments calculated from the sum of the required State |
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| contribution for State fiscal year 2007 plus the applicable |
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| portion of the State's total debt service payments for fiscal |
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| year 2007 on the bonds issued for the purposes of Section 7.2 |
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| of the General
Obligation Bond Act, so that, by State fiscal |
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| year 2011, the
State is contributing at the rate otherwise |
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| required under this Section.
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| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950, |
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| eff. 8-29-08.)
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