100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5118

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/9-169  from Ch. 108 1/2, par. 9-169
40 ILCS 5/10-107  from Ch. 108 1/2, par. 10-107
30 ILCS 805/8.42 new

    Amends the Cook County Forest Preserve Article of the Illinois Pension Code. Removes language providing how the Cook County Forest Preserve shall levy and collect a property tax levied to provide revenue for the fund under that Article. Amends the Cook County and Cook County Forest Preserve Articles of the Illinois Pension Code. Specifies the dollar amount of the required employer contributions through 2022. Beginning in the year 2023, provides for the annual required contribution to be the amount determined by the Fund to be equal to the sum of (i) the employer's portion of the projected normal cost for that fiscal year, plus (ii) an amount that is sufficient to bring the total actuarial assets of the Fund up to 100% of the total actuarial liabilities of the Fund by the end of 2052. Provides that the contributions may be taken from any revenue source, including, but not limited to, other tax revenues, proceeds of borrowings, or State or federal funds. Amends the State Mandates Act to require implementation without reimbursement. Makes technical and other changes. Effective immediately.


LRB100 18399 MJP 33610 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB5118LRB100 18399 MJP 33610 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 9-169 and 10-107 as follows:
 
6    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
7    Sec. 9-169. Financing - Tax levy.
8    (a) The county board shall levy a tax annually upon all
9taxable property in the county at the rate that will produce a
10sum which, when added to the amounts deducted from the salaries
11of the employees or otherwise contributed by them is sufficient
12for the requirements of this Article.
13    For the years before 1962 the tax rate shall be as provided
14in "The 1925 Act". For the years 1962 and 1963 the tax rate
15shall be not more than .0200 per cent; for the years 1964 and
161965 the tax rate shall be not more than .0202 per cent; for
17the years 1966 and 1967 the tax rate shall be not more than
18.0207 per cent; for the year 1968 the tax rate shall be not
19more than .0220 per cent; for the year 1969 the tax rate shall
20be not more than .0233 per cent; for the year 1970 the tax rate
21shall be not more than .0255 per cent; for the year 1971 the
22tax rate shall be not more than .0268 per cent of the value, as
23equalized or assessed by the Department of Revenue upon all

 

 

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1taxable property in the county. Beginning with the year 1972
2and for each year thereafter the county shall levy a tax
3annually at a rate on the dollar of the value, as equalized or
4assessed by the Department of Revenue of all taxable property
5within the county that will produce, when extended, not to
6exceed an amount equal to:
7        (1) the total amount of contributions made by the
8    employees to the fund in the calendar year 2 years prior to
9    the year for which the annual applicable tax is levied
10    multiplied by .8 for the years 1972 through 1976; by .8 for
11    the year 1977; by .87 for the year 1978; by .94 for the
12    year 1979; by 1.02 for the year 1980; and by 1.10 for the
13    year 1981; and by 1.18 for the year 1982; and by 1.36 for
14    the year 1983; and by 1.54 for the years year 1984 through
15    2017; and for each year thereafter.
16        (2) for the year 2018 and for each year thereafter, the
17    amount of the county's required annual contribution to the
18    Fund as determined under this Article.
19    This tax shall be levied and collected in like manner with
20the general taxes of the county, and shall be in addition to
21all other taxes which the county is authorized to levy upon the
22aggregate valuation of all taxable property within the county
23and shall be exclusive of and in addition to the amount of tax
24the county is authorized to levy for general purposes under any
25laws which may limit the amount of tax which the county may
26levy for general purposes. The county clerk, in reducing tax

 

 

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1levies under any Act concerning the levy and extension of
2taxes, shall not consider this tax as a part of the general tax
3levy for county purposes, and shall not include it within any
4limitation of the per cent of the assessed valuation upon which
5taxes are required to be extended for the county. It is lawful
6to extend this tax in addition to the general county rate fixed
7by statute, without being authorized as additional by a vote of
8the people of the county.
9    Revenues derived from this tax shall be paid to the
10treasurer of the county and held by him for the benefit of the
11fund.
12    If the payments on account of taxes are insufficient during
13any year to meet the requirements of this Article, the county
14may issue tax anticipation warrants against the current tax
15levy.
16    (a-5) Beginning in payment year 2018, the county's required
17annual contribution to the Fund for payment years 2018 through
182022 shall be: for 2018, $555,000,000; for 2019, $566,000,000;
19for 2020, $577,000,000; for 2021, $588,000,000; and for 2022,
20$599,000,000.
21    For payment years 2023 through 2052, the county's required
22annual contribution to the Fund shall be the amount determined
23by the Fund to be equal to the sum of (i) the county's portion
24of the projected normal cost for that fiscal year, plus (ii) an
25amount determined by the Fund that is sufficient to bring the
26total actuarial assets of the Fund up to 100% of the total

 

 

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1actuarial liabilities of the Fund by the end of 2052.
2    For payment years after 2052, the county's required annual
3contribution to the Fund shall be equal to the amount, if any,
4needed to bring the total actuarial assets of the Fund up to
5100% of the total actuarial liabilities of the Fund as of the
6end of the year.
7    (b) By January 10, annually, the board shall notify the
8county board of the requirement of this Article that this tax
9shall be levied. The board shall make an annual determination
10of the required county contributions, and shall certify the
11results thereof to the county board.
12    (c) The various sums to be contributed by the county board
13and allocated for the purposes of this Article and any interest
14to be contributed by the county shall be taken from the revenue
15derived from this tax or from any revenue source, including,
16but not limited to, other tax revenue, proceeds of county
17borrowings, or State or federal funds. and no money of the
18county derived from any source other than the levy and
19collection of this tax or the sale of tax anticipation
20warrants, except state or federal funds contributed for annuity
21and benefit purposes for employees of a county department of
22public aid under "The Illinois Public Aid Code", approved April
2311, 1967, as now or hereafter amended, may be used to provide
24revenue for the fund.
25    If it is not possible or practicable for the county to make
26contributions for age and service annuity and widow's annuity

 

 

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1concurrently with the employee contributions made for such
2purposes, such county shall make such contributions as soon as
3possible and practicable thereafter with interest thereon at
4the effective rate until the time it shall be made.
5    (d) With respect to employees whose wages are funded as
6participants under the Comprehensive Employment and Training
7Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
893-567, 88 Stat. 1845), hereinafter referred to as CETA,
9subsequent to October 1, 1978, and in instances where the board
10has elected to establish a manpower program reserve, the board
11shall compute the amounts necessary to be credited to the
12manpower program reserves established and maintained as herein
13provided, and shall make a periodic determination of the amount
14of required contributions from the County to the reserve to be
15reimbursed by the federal government in accordance with rules
16and regulations established by the Secretary of the United
17States Department of Labor or his designee, and certify the
18results thereof to the County Board. Any such amounts shall
19become a credit to the County and will be used to reduce the
20amount which the County would otherwise contribute during
21succeeding years for all employees.
22    (e) In lieu of establishing a manpower program reserve with
23respect to employees whose wages are funded as participants
24under the Comprehensive Employment and Training Act of 1973, as
25authorized by subsection (d), the board may elect to establish
26a special County contribution rate for all such employees. If

 

 

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1this option is elected, the County shall contribute to the Fund
2from federal funds provided under the Comprehensive Employment
3and Training Act program at the special rate so established and
4such contributions shall become a credit to the County and be
5used to reduce the amount which the County would otherwise
6contribute during succeeding years for all employees.
7(Source: P.A. 95-369, eff. 8-23-07.)
 
8    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
9    Sec. 10-107. Financing - Tax levy.
10    (a) The forest preserve district may levy an annual tax on
11the value, as equalized or assessed by the Department of
12Revenue, of all taxable property in the district for the
13purpose of providing revenue for the fund. The rate of such tax
14in any year may not exceed the rate herein specified for that
15year or the rate which will produce, when extended, the sum
16herein stated for that year, whichever is higher: for any year
17prior to 1970, .00103% or $195,000; for the year 1970, .00111%
18or $210,000; for the year 1971, .00116% or $220,000.
19    For the year 1972 and each year thereafter, the Forest
20Preserve District shall levy a tax annually at a rate on the
21dollar of the value, as equalized or assessed by the Department
22of Revenue upon all taxable property in the county, when
23extended, not to exceed an amount equal to:
24        (1) the total amount of contributions by the employees
25    to the fund made in the calendar year 2 years prior to the

 

 

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1    year for which the annual applicable tax is levied,
2    multiplied by 1.25 for the year 1972; and by 1.30 for the
3    years year 1973 through 2017; and for each year thereafter.
4        (2) for the year 2018 and for each year thereafter, the
5    amount of the Forest Preserve District's required annual
6    contribution to the Fund as determined under this Article.
7    The tax shall be levied and collected in like manner with
8the general taxes of the district and shall be in addition to
9the maximum of all other tax rates which the district may levy
10upon the aggregate valuation of all taxable property and shall
11be exclusive of and in addition to the maximum amount and rate
12of taxes the district may levy for general purposes or under
13and by virtue of any laws which limit the amount of tax which
14the district may levy for general purposes. The county clerk of
15the county in which the forest preserve district is located in
16reducing tax levies under the provisions of "An Act concerning
17the levy and extension of taxes", approved May 9, 1901, as
18amended, shall not consider any such tax as a part of the
19general tax levy for forest preserve purposes, and shall not
20include the same in the limitation of 1% of the assessed
21valuation upon which taxes are required to be extended, and
22shall not reduce the same under the provisions of that Act. The
23proceeds of the tax herein authorized shall be kept as a
24separate fund.
25    (b) Beginning in payment year 2018, the Forest Preserve
26District's required annual contribution to the Fund for payment

 

 

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1years 2018 through 2022 shall be: for 2018, $4,500,000; for
22019, $5,500,000; for 2020, $6,500,000; for 2021, $7,500,000;
3and for 2022, $8,500,000.
4    For payment years 2023 through 2052, the Forest Preserve
5District's required annual contribution to the Fund shall be
6the amount determined by the Fund to be equal to the sum of (i)
7the Forest Preserve District's portion of the projected normal
8cost for that fiscal year, plus (ii) an amount determined by
9the Fund that is sufficient to bring the total actuarial assets
10of the Fund up to 100% of the total actuarial liabilities of
11the Fund by the end of 2052.
12    For payment years after 2052, the Forest Preserve
13District's required annual contribution to the Fund shall be
14equal to the amount, if any, needed to bring the total
15actuarial assets of the Fund up to 100% of the total actuarial
16liabilities of the Fund as of the end of the year.
17    (c) The various sums to be contributed by the Forest
18Preserve District and allocated for the purposes of this
19Article and any interest to be contributed by the Forest
20Preserve District shall be taken from the revenue derived from
21the tax levied annually by the Forest Preserve District under
22this Section or from any other revenue source, including, but
23not limited to, other tax revenue, proceeds of borrowings, or
24State or federal funds.
25    (d) The Board may establish a manpower program reserve, or
26a special forest preserve district contribution rate, with

 

 

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1respect to employees whose wages are funded as program
2participants under the Comprehensive Employment and Training
3Act of 1973 in the manner provided in subsection (d) or (e),
4respectively, of Section 9-169.
5(Source: P.A. 81-1509.)
 
6    Section 90. The State Mandates Act is amended by adding
7Section 8.42 as follows:
 
8    (30 ILCS 805/8.42 new)
9    Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8
10of this Act, no reimbursement by the State is required for the
11implementation of any mandate created by this amendatory Act of
12the 100th General Assembly.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.