102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3909

 

Introduced 1/21/2022, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/10-107  from Ch. 108 1/2, par. 10-107
30 ILCS 805/8.46 new

    Amends the Cook County Forest Preserve Article of the Illinois Pension Code. Provides that beginning in levy year 2023, and in each year thereafter, the Forest Preserve District shall levy a tax annually at a rate on the dollar of the value of all taxable property within the county that will produce, when extended, an amount equal to no less than the amount of the Forest Preserve District's total required contribution to the Fund for the next payment year. Specifies the annual contribution for payment years 2023 through 2025. Provides that the retirement board shall retain an actuary who is a member in good standing of the American Academy of Actuaries to produce an annual actuarial report of the Fund, which shall include specified information. Provides that the minimum required employer contribution for a specified year as set forth in the annual actuarial report shall be the amount determined by the Fund's actuary to be equal to the sum of: (i) the projected normal cost for pensions for that fiscal year, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, minus (v) projected employee contributions for that fiscal year. Contains provisions concerning additional contributions; methods of calculating the required contribution; contributions for payment years after 2063; and property taxes. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.


LRB102 25831 RPS 35175 b

 

 

A BILL FOR

 

SB3909LRB102 25831 RPS 35175 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
5changing Section 10-107 as follows:
 
6    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
7    Sec. 10-107. Financing - Tax levy.
8    (a) The forest preserve district may levy an annual tax on
9the value, as equalized or assessed by the Department of
10Revenue, of all taxable property in the district for the
11purpose of providing revenue for the fund. The rate of such tax
12in any year may not exceed the rate herein specified for that
13year or the rate which will produce, when extended, the sum
14herein stated for that year, whichever is higher: for any year
15prior to 1970, .00103% or $195,000; for the year 1970, .00111%
16or $210,000; for the year 1971, .00116% or $220,000. For the
17year 1972 and each year thereafter, the Forest Preserve
18District shall levy a tax annually at a rate on the dollar of
19the value, as equalized or assessed by the Department of
20Revenue upon all taxable property in the county, when
21extended, not to exceed an amount equal to the total amount of
22contributions by the employees to the fund made in the
23calendar year 2 years prior to the year for which the annual

 

 

SB3909- 2 -LRB102 25831 RPS 35175 b

1applicable tax is levied, multiplied by 1.25 for the year
21972; and by 1.30 for the year 1973 and for each year
3thereafter through levy year 2022. Beginning in levy year
42023, and in each year thereafter, the Forest Preserve
5District shall levy a tax annually at a rate on the dollar of
6the value, as equalized or assessed by the Department of
7Revenue, of all taxable property within the county that will
8produce, when extended, an amount equal to no less than the
9amount of the Forest Preserve District's total required
10contribution to the Fund for the next payment year, as
11determined under subsection (b). For the purposes of this
12Section, the payment year is the year immediately following
13the levy year.
14    The tax shall be levied and collected in like manner with
15the general taxes of the district and shall be in addition to
16the maximum of all other tax rates which the district may levy
17upon the aggregate valuation of all taxable property and shall
18be exclusive of and in addition to the maximum amount and rate
19of taxes the district may levy for general purposes or under
20and by virtue of any laws which limit the amount of tax which
21the district may levy for general purposes. The county clerk
22of the county in which the forest preserve district is located
23in reducing tax levies under the provisions of "An Act
24concerning the levy and extension of taxes", approved May 9,
251901, as amended, shall not consider any such tax as a part of
26the general tax levy for forest preserve purposes, and shall

 

 

SB3909- 3 -LRB102 25831 RPS 35175 b

1not include the same in the limitation of 1% of the assessed
2valuation upon which taxes are required to be extended, and
3shall not reduce the same under the provisions of that Act. The
4proceeds of the tax herein authorized shall be kept as a
5separate fund.
6    The forest preserve district may use other lawfully
7available funds in lieu of all or part of the levy.
8    The Board may establish a manpower program reserve, or a
9special forest preserve district contribution rate, with
10respect to employees whose wages are funded as program
11participants under the Comprehensive Employment and Training
12Act of 1973 in the manner provided in subsection (d) or (e),
13respectively, of Section 9-169.
14    (b)(1) Beginning in payment year 2023, the Forest Preserve
15District shall contribute to the Fund: $6,100,000 in payment
16year 2023; $8,100,000 in payment year 2024; and $10,200,000 in
17payment year 2025. The Forest Preserve District may contribute
18an additional amount to the Fund in each payment year 2023,
192024, or 2025, which shall not exceed a contribution of
20$13,000,000 to the Fund in payment year 2023, 2024, or 2025.
21    (2) The retirement board shall retain an actuary who is a
22member in good standing of the American Academy of Actuaries
23to produce an annual actuarial report of the Fund. The annual
24actuarial report shall include, but not be limited to: (i) a
25statement of the actuarial value of the Fund's assets as
26projected over 30 years' time and the actuarial value of the

 

 

SB3909- 4 -LRB102 25831 RPS 35175 b

1Fund's liabilities as projected over the same period of time;
2and (ii) the minimum required employer contribution for the
3second year immediately following the year ending on the
4valuation date upon which the annual actuarial report is
5based. The annual actuarial report shall be reviewed and
6formally adopted by the retirement board and may be included
7in other annual reports.
8    (3) The minimum required employer contribution for a
9specified year as set forth in the annual actuarial report
10required under paragraph (2) shall be the amount determined by
11the Fund's actuary to be equal to the sum of: (i) the projected
12normal cost for pensions for that fiscal year, plus (ii) a
13projected unfunded actuarial accrued liability amortization
14payment for pensions for the fiscal year, plus (iii) projected
15expenses for that fiscal year, plus (iv) interest to adjust
16for payment pattern during the fiscal year, minus (v)
17projected employee contributions for that fiscal year. The
18Forest Preserve District's required annual contribution to the
19Fund shall not be less than the sum of: (i) the projected
20normal cost for pensions for that fiscal year, plus (ii) a
21projected unfunded actuarial accrued liability amortization
22payment for pensions for the fiscal year, plus (iii) projected
23expenses for that fiscal year, plus (iv) interest to adjust
24for payment pattern during the fiscal year, minus (v)
25projected employee contributions for that fiscal year. The
26minimum required employer contribution shall be based on the

 

 

SB3909- 5 -LRB102 25831 RPS 35175 b

1entry age normal cost method, a 5-year smoothed actuarial
2value of assets, and a 30-year layered amortization of
3unfunded actuarial accrued liability with payments increasing
4at 2% per year. The unfunded actuarial accrued liability
5payment schedule shall be based on the schedule initially
6established in 2016 and ending in 2046.
7    The minimum required employer contribution shall be
8submitted annually by the Forest Preserve District on or
9before July 31 unless another time frame is agreed upon by the
10Forest Preserve District and the Fund. The methods provided in
11this Section may be amended as recommended by an independent
12actuary engaged by the Fund and in compliance with actuarial
13standards of practice and as adopted by an affirmative vote of
14a majority of the retirement board and the Forest Preserve
15District Board of Commissioners.
16    (4) For payment years 2026 through 2063, the Forest
17Preserve District's required annual contribution to the Fund
18shall be the minimum required employer contribution set forth
19in paragraph(3) of this subsection (b).
20    (5) For payment years after 2063, the Forest Preserve
21District's required annual contribution to the Fund shall be
22equal to the amount, if any, needed to bring the total
23actuarial assets of the Fund up to 100% of the total actuarial
24liabilities of the Fund by the end of the year.
25    (6) To the extent that the Forest Preserve District's
26contribution for any of the payment years referenced in this

 

 

SB3909- 6 -LRB102 25831 RPS 35175 b

1subsection (b) is made with property taxes, those property
2taxes shall be levied, collected, and paid to the Fund in a
3like manner with the general taxes of the Forest Preserve
4District.
5(Source: P.A. 102-210, eff. 1-1-22.)
 
6    Section 90. The State Mandates Act is amended by adding
7Section 8.46 as follows:
 
8    (30 ILCS 805/8.46 new)
9    Sec. 8.46. Exempt mandate. Notwithstanding Sections 6 and
108 of this Act, no reimbursement by the State is required for
11the implementation of any mandate created by this amendatory
12Act of the 102nd General Assembly.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.