Personnel and Pensions Committee
Filed: 3/10/2005
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 2468 




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    AMENDMENT NO. ______. Amend House Bill 2468  by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Illinois Pension Code is amended by 
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changing Sections
17-127 and 17-129 as follows:


 
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    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)

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    Sec. 17-127. Financing; revenues for the Fund.


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    (a) The revenues for the Fund shall consist of: (1) amounts 
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paid into
the Fund by contributors thereto and from employer 
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contributions and State
appropriations in accordance with this 
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Article; (2) amounts contributed to the
Fund by an Employer; 
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(3) amounts contributed to the Fund pursuant to any law
now in 
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force or hereafter to be enacted; (4) contributions from any 
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other
source; and (5) the earnings on investments of the Fund.


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    (b) The General Assembly finds that for many years the 
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State has
contributed to the Fund an annual amount that is 
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between 20% and 30% of the
amount of the annual State 
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contribution to the Article 16 retirement system,
and the 
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General Assembly declares that it is its goal and intention to 
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continue
this level of contribution to the Fund in the future.


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    (b-5)
Beginning In State fiscal years
year 1999 through

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2005, the State shall include
in its annual contribution to the 
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Fund an additional amount equal to 0.544% of
the Fund's total 
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teacher payroll; except that this additional contribution need

 


 






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not be made in a fiscal year if the Board has certified in the 
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previous
fiscal year that the Fund is at least 90% funded, 
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based on actuarial
determinations.  These additional State 
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contributions are intended to offset
a portion of the cost to 
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the Fund of the increases in retirement benefits
resulting from 
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Public Act 90-582
this amendatory Act of 1998.


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    (c) For each State fiscal year ending after calendar year 
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2005, the
State shall contribute to the Fund, by means of 
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appropriations from the Common
School Fund or other State 
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funds, an amount not less than the greater of (i)
the amount 
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appropriated for the Fund for the State fiscal year ending in

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calendar year 2003 or (ii) the minimum funding requirement, as 
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defined below,
for that fiscal year (calculated without regard 
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to any contribution of the
State to or for the benefit of the 
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Fund under this subsection (c)).

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    (d) Beginning in the State fiscal year ending in 2006, on 
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the 15th day of
each month, or as soon after that date as is 
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practicable, the Board shall
submit vouchers for payment of 
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State contributions to the Fund, in a monthly
amount of 
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one-twelfth of the required annual State contribution under

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subsection (c) of this Section.  If that required annual 
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contribution changes
during the State fiscal year, the 
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remaining monthly amounts shall be adjusted
in equal amounts so 
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that the total amount for which vouchers are submitted for
the 
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year equals that
required annual contribution.  These vouchers 
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shall be paid by the State
Comptroller and Treasurer by 
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warrants drawn on the funds appropriated to the
Fund for that 
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fiscal year.  If, in any month, the amount remaining unexpended

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from all other State appropriations to the Fund for that State 
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fiscal year is
less than the amount for which vouchers are 
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lawfully submitted under this
Section, the difference shall be 
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paid under the continuing appropriation
available for that 
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purpose pursuant to the Chicago Teacher Pension Fund
Continuing 
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Appropriation Act.

 


 






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    (e) If the State does not make the contribution required by 
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subsections (c) and (d), then the Board of Education shall meet 
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the minimum funding requirement, as defined in subsection (f).

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    (f) For the purposes of this Section, "minimum funding 
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requirement"
for any fiscal year means the minimum Board of 
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Education contribution to the
Fund under Section  17-129 
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(calculated without regard to
any contribution of the State to 
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or for the benefit of the Fund).


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    (g) The changes made to this Section or Section 17-129 by 
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this amendatory Act of the 94th General Assembly  shall not be 
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construed, interpreted, or otherwise viewed to imply an 
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authorization, desire, or intent to merge or in any other way 
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combine the Public School Teachers' Pension and Retirement Fund 
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of Chicago with any other pension fund.

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(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98; 
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90-582, eff.
5-27-98; 90-655, eff. 7-30-98.)

 
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    (40 ILCS 5/17-129)  (from Ch. 108 1/2, par. 17-129)

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    Sec. 17-129. Employer contributions; deficiency in Fund.


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    (a) If in any fiscal year of the Board of Education ending 
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prior to 1997 the
total amounts paid to the Fund from the Board 
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of Education (other than under
this subsection, and other than 
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amounts used for making or "picking up"
contributions on behalf 
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of teachers) and from the State do not equal the total

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contributions made by or on behalf of the teachers for such 
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year, or if the
total income of the Fund in any such fiscal 
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year of the Board of Education from
all sources is less than 
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the total such expenditures by the Fund for such year,
the 
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Board of Education shall, in the next succeeding year, in 
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addition to any
other payment to the Fund set apart and 
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appropriate from moneys from its tax
levy for educational 
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purposes, a sum sufficient to remove such deficiency or

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deficiencies, and promptly pay such sum into the Fund in order 
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to restore any
of the reserves of the Fund that may have been 
 


 






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so temporarily applied.  Any
amounts received by the Fund after 
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December 4, 1997 from State appropriations, including under 
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Section
17-127, shall be a credit against and shall fully 
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satisfy any obligation that
may have arisen, or be claimed to 
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have arisen, under this subsection (a) as a
result of any 
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deficiency or deficiencies in the fiscal year of the Board of

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Education ending in calendar year 1997.


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    (b) (i) For fiscal years 2011 through 2045, the minimum 
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contribution
to the Fund to be made by the Board of Education 
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in each fiscal year shall be
an amount determined by the Fund 
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to be sufficient, taking into account
payments
made and to be 
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made under Section 17-127.2, to bring the total assets of
the 
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Fund up to 90% of the total actuarial liabilities of the Fund 
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by the end of
fiscal year 2045.  In making these determinations, 
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the required Board of
Education contribution shall be 
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calculated each year as a level percentage of
the applicable 
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employee payrolls over the years remaining to and including

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fiscal year 2045 and shall
be determined under the projected 
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unit credit actuarial cost method.


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    (ii) For fiscal years 1999 through 2010, the Board of 
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Education's
contribution to the Fund, as a percentage of the 
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applicable employee payroll,
shall be increased in equal annual 
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increments so that by fiscal year 2011, the
Board of Education 
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is contributing at the rate required under this subsection.


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    (iii) Beginning in fiscal year 2046, the minimum Board of 
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Education
contribution for each fiscal year shall be the amount 
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needed to maintain the
total assets of the Fund at 90% of the 
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total actuarial liabilities of the Fund.


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    (iv) Notwithstanding the provisions of paragraphs (i), 
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(ii), and (iii)
of this subsection (b) or Section 17-127.2, for 
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any fiscal year the
contribution to the Fund from
the Board of 
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Education shall not be required to be in excess of the amount

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calculated as needed to maintain the assets (or cause the 
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assets to be) at the
90% level by the end of the fiscal year.


 


 






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    (v) Any contribution by the State to or for the benefit of 
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the Fund
in a fiscal year, including, without limitation, any 
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contribution
as
referred to under Section 17-127, shall be a 
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credit against any contribution
required to be made by the 
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Board of Education under this subsection (b).


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    (c) The Board shall determine the amount of Board of 
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Education
contributions required for each fiscal year on the 
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basis of the actuarial
tables and other assumptions adopted by 
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the Board and the recommendations of
the actuary, in order to 
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meet the minimum contribution requirements of
subsections (a) 
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and (b).  Annually, on or before February 28, the Board shall

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certify to the Board of Education the amount of the required 
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Board of Education
contribution for the coming fiscal year.  The 
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certification shall include a
copy of the actuarial 
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recommendations upon which it is based.


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(Source: P.A. 89-15, eff. 5-30-95; 90-548, eff. 12-4-97; 
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90-566, eff. 1-2-98;
90-655, eff. 7-30-98.)


 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.".