SB0449sam001 98TH GENERAL ASSEMBLY

Sen. Kwame Raoul

Filed: 3/6/2014

09800SB0449sam001 LRB098 04666 EFG 56619 a

AMENDMENT TO SENATE BILL 449

AMENDMENT NO. ______. Amend Senate Bill 449 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Pension Code is amended by changing Section 17-129 and by adding Section 17-128.1 as follows:

(40 ILCS 5/17-128.1 new)

Sec. 17-128.1. Tax for employer contributions to the Fund.

(a) For the purpose of providing monies for required employer contributions to the Fund, beginning in 2015 and in each year thereafter, the Board of Education shall levy a tax on the equalized assessed value of all taxable property in the City, at a rate which, when extended, will produce an amount reasonably calculated at the time of the levy to provide for payment in full of the Board of Education's contributions required under Section 17-129 for the portions of the fiscal years for which revenues from the levy will be received, as such amount is determined and certified by the Board of the Fund, plus any amount of required Board of Education contributions for previous years that remain unpaid.

The tax required under this Section shall be levied and collected in like manner with the other taxes of the Board of Education and shall be distributed as provided in subsection (b).

The tax required under this Section shall be in addition to all other taxes that the Board of Education is now or may hereafter be authorized to levy, and shall be exclusive of and in addition to the amount of tax authorized to be levied under any law that may limit the amount of tax that the Board of Education may levy for this or any other purpose. The tax may be levied by the Board of Education without being authorized by a vote of the people.

The tax required under this Section shall not be considered or reduced in the course of determining any limitation of any other tax rate that may be extended.

(b) The proceeds of the tax required under this Section shall, upon collection, be paid by the tax collector directly and immediately to the Fund for deposit as directed by the Board of the Fund and shall be credited as contributions paid to the Fund by the Board of Education.

(c) If the Board of Education fails to levy the tax as required under this Section, or the amount collected from that tax is otherwise insufficient to pay the full amount of the required contribution certified by the Board of the Fund, then the Board of the Fund, after giving notice to the Board of Education, shall certify the amount of the insufficiency to the tax collector and direct that an amount of the proceeds received from the tax levied by the Board of Education for educational purposes under Section 34-53 of the School Code, equal to the certified insufficiency, shall upon collection be paid by the tax collector directly and immediately to the Fund for deposit as directed by the Board of the Fund. Any amount so paid shall be credited as contributions paid to the Fund by the Board of Education.

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

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

(a) If in any fiscal year of the Board of Education ending prior to 1997 the total amounts paid to the Fund from the Board of Education (other than under this subsection, and other than amounts used for making or "picking up" contributions on behalf of teachers) and from the State do not equal the total contributions made by or on behalf of the teachers for such year, or if the total income of the Fund in any such fiscal year of the Board of Education from all sources is less than the total such expenditures by the Fund for such year, the Board of Education shall, in the next succeeding year, in addition to any other payment to the Fund set apart and appropriate from moneys from its tax levy for educational purposes, a sum sufficient to remove such deficiency or deficiencies, and promptly pay such sum into the Fund in order to restore any of the reserves of the Fund that may have been so temporarily applied. Any amounts received by the Fund after December 4, 1997 and before July 1, 2010 from State appropriations, including under Section 17-127, shall be a credit against and shall fully satisfy any obligation that may have arisen, or be claimed to have arisen, under this subsection (a) as a result of any deficiency or deficiencies in the fiscal year of the Board of Education ending in calendar year 1997.

(b) (i) Notwithstanding any other provision of this Section, and notwithstanding any prior certification by the Board under subsection (c) for fiscal year 2011, the Board of Education's total required contribution to the Fund for fiscal year 2011 under this Section is $187,000,000.

(ii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2012 under this Section is $192,000,000.

(iii) Notwithstanding any other provision of this Section, the Board of Education's total required contribution to the Fund for fiscal year 2013 under this Section is $196,000,000.

(iv) For fiscal years 2014 through 2059, the minimum contribution to the Fund to be made by the Board of Education in each fiscal year shall be an amount determined by the Fund to be sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2059. In making these determinations, the required Board of Education contribution shall be calculated each year as a level percentage of the applicable employee payrolls over the years remaining to and including fiscal year 2059 and shall be determined under the projected unit credit actuarial cost method.

(v) Beginning in fiscal year 2060, the minimum Board of Education contribution for each fiscal year shall be the amount needed to maintain the total assets of the Fund at 90% of the total actuarial liabilities of the Fund.

(vi) Notwithstanding any other provision of this subsection (b), for any fiscal year, the contribution to the Fund from the Board of Education shall not be required to be in excess of the amount calculated as needed to maintain the assets (or cause the assets to be) at the 90% level by the end of the fiscal year.

(vii) Any contribution by the State to or for the benefit of the Fund, including, without limitation, as referred to under Section 17-127, shall be a credit against any contribution required to be made by the Board of Education under this subsection (b) if the Board certifies that the total assets of the Fund are at least 90% of the total actuarial liabilities of the Fund as of June 30 of the previous fiscal year.

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

(d) The Board of Education's required contribution to the Fund for fiscal year 2015 shall be paid in 12 equal monthly payments.

The Board of Education's required contribution to the Fund for fiscal year 2016 shall be paid in 12 equal monthly payments, proportionately reduced by the amount of any proceeds of the tax required to be levied under Section 17-128.1 that are reasonably anticipated to be received by the Fund in that fiscal year.

Beginning with fiscal year 2017 and continuing for each fiscal year thereafter, the Board of Education's required contribution to the Fund shall be paid from the proceeds of the tax required to be levied under Section 17-128.1 that are received by the Fund in that fiscal year.

If the sum provided by the tax required under subsection (a) of Section 17-128.1 is insufficient to pay in full the required contribution, the Board of Education remains liable for the payment of that insufficiency. If the insufficiency is not recovered by the Fund under subsection (c) of Section 17-128.1 or otherwise paid by the Board of Education, the amount remaining unpaid shall be added to the required contribution certified by the Board of the Fund for the next fiscal year.

(Source: P.A. 96-889, eff. 4-14-10.)

Section 90. The State Mandates Act is amended by adding Section 8.38 as follows:

(30 ILCS 805/8.38 new)

Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 98th General Assembly.

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