Illinois General Assembly - Full Text of HB4980
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Full Text of HB4980  102nd General Assembly

HB4980 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4980

 

Introduced 1/27/2022, by Rep. Robert Rita

 

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 805/8.46 new

    Amends the Cook County and Cook County Forest Preserve Articles of the Illinois Pension Code. Specifies the amount of the county's and the forest preserve district's required annual contributions for payment year 2024 through payment year 2026. Provides that for payment years 2027 through 2064, the county's and forest preserve district's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the county's or forest preserve district's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined on a level percentage of applicable employee payroll basis that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2064. Specifies a formula for payment years after 2064. Provides that in lieu of levying all or a portion of the required tax in any year, the county or forest preserve district may deposit with the county treasurer for the benefit of the fund an amount that, together with the taxes levied for that year, is not less than the amount of the county's or forest preserve district's contributions for that year as certified by the board of the Fund to the county board or forest preserve district. Provides that the county may continue to use other lawfully available funds to make the contribution in lieu of all or part of the levy. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State.


LRB102 23372 RPS 32540 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB4980LRB102 23372 RPS 32540 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 Sections 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
11salaries of the employees or otherwise contributed by them is
12sufficient for 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

 

 

HB4980- 2 -LRB102 23372 RPS 32540 b

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 the total amount of contributions
7made by the employees to the fund in the calendar year 2 years
8prior to the year for which the annual applicable tax is levied
9multiplied by .8 for the years 1972 through 1976; by .8 for the
10year 1977; by .87 for the year 1978; by .94 for the year 1979;
11by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
121.18 for the year 1982 and by 1.36 for the year 1983 and by
131.54 for the year 1984 and for each year thereafter through
14levy year 2022. Beginning in levy year 2023, and in each year
15thereafter, the County shall levy a tax annually at a rate on
16the dollar of the value, as equalized or assessed by the
17Department of Revenue of all taxable property within the
18County that will produce, when extended, an amount equal to no
19less than the amount of the County's total required
20contribution to the Fund for the next payment year, as
21determined under subsection (a-5). For the purposes of this
22Section, the payment year is the year immediately following
23the levy year.
24    This tax shall be levied and collected in like manner with
25the general taxes of the county, and shall be in addition to
26all other taxes which the county is authorized to levy upon the

 

 

HB4980- 3 -LRB102 23372 RPS 32540 b

1aggregate valuation of all taxable property within the county
2and shall be exclusive of and in addition to the amount of tax
3the county is authorized to levy for general purposes under
4any laws which may limit the amount of tax which the county may
5levy for general purposes. The county clerk, in reducing tax
6levies under any Act concerning the levy and extension of
7taxes, shall not consider this tax as a part of the general tax
8levy for county purposes, and shall not include it within any
9limitation of the per cent of the assessed valuation upon
10which taxes are required to be extended for the county. It is
11lawful to extend this tax in addition to the general county
12rate fixed by statute, without being authorized as additional
13by a vote of the people of the county.
14    Revenues derived from this tax shall be paid to the
15treasurer of the county and held by the treasurer of the County
16him for the benefit of the fund.
17    If the payments on account of taxes are insufficient
18during any year to meet the requirements of this Article, the
19county may issue tax anticipation warrants against the current
20tax levy.
21    The County may continue to use other lawfully available
22funds in lieu of all or part of the levy, as provided under
23subsection (f).
24    (a-5)(1) Beginning in payment year 2024, the County's
25required annual contribution to the Fund for payment years
262024 through 2026 shall be: for 2024, $511,800,000; for 2025,

 

 

HB4980- 4 -LRB102 23372 RPS 32540 b

1$494,900,000; and for 2026, $495,000,000.
2    (2) For payment years 2027 through 2064, the County's
3required annual contribution to the Fund shall be the amount
4determined by the Fund to be equal to the sum of (i) the
5County's portion of the projected normal cost for that fiscal
6year, plus (ii) an amount determined on a level percentage of
7applicable employee payroll basis that is sufficient to bring
8the total actuarial assets of the Fund up to 90% of the total
9actuarial liabilities of the Fund by the end of 2064.
10    (3) For payment years after 2064, the County's required
11annual contribution to the Fund shall be equal to the amount,
12if any, needed to bring the total actuarial assets of the Fund
13up to 90% of the total actuarial liabilities of the Fund by the
14end of the year.
15    (4) In making the determinations under paragraphs (2) and
16(3) of this subsection, the actuarial calculations shall be
17determined under the entry age normal actuarial cost method,
18and any actuarial gains or losses from investment return
19incurred in a fiscal year shall be recognized in equal annual
20amounts over the 5-year period following the fiscal year.
21    (5) To the extent that the County's contribution for any
22of the payment years referenced in this subsection is made
23with property taxes, those property taxes shall be levied,
24collected, and paid to the Fund in a like manner with the
25general taxes of the County.
26    (b) By January 10, annually, the board shall notify the

 

 

HB4980- 5 -LRB102 23372 RPS 32540 b

1county board of the requirement of this Article that this tax
2shall be levied. The board shall make an annual determination
3of the required county contributions, and shall certify the
4results thereof to the county board.
5    (c) (Blank). The various sums to be contributed by the
6county board and allocated for the purposes of this Article
7and any interest to be contributed by the county shall be taken
8from the revenue derived from this tax and no money of the
9county derived from any source other than the levy and
10collection of this tax or the sale of tax anticipation
11warrants, except state or federal funds contributed for
12annuity and benefit purposes for employees of a county
13department of public aid under "The Illinois Public Aid Code",
14approved April 11, 1967, as now or hereafter amended, may be
15used to provide revenue for the fund.
16    If it is not possible or practicable for the county to make
17contributions for age and service annuity and widow's annuity
18concurrently with the employee contributions made for such
19purposes, such county shall make such contributions as soon as
20possible and practicable thereafter with interest thereon at
21the effective rate until the time it shall be made.
22    (d) With respect to employees whose wages are funded as
23participants under the Comprehensive Employment and Training
24Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2593-567, 88 Stat. 1845), hereinafter referred to as CETA,
26subsequent to October 1, 1978, and in instances where the

 

 

HB4980- 6 -LRB102 23372 RPS 32540 b

1board has elected to establish a manpower program reserve, the
2board shall compute the amounts necessary to be credited to
3the manpower program reserves established and maintained as
4herein provided, and shall make a periodic determination of
5the amount of required contributions from the County to the
6reserve to be reimbursed by the federal government in
7accordance with rules and regulations established by the
8Secretary of the United States Department of Labor or his
9designee, and certify the results thereof to the County Board.
10Any such amounts shall become a credit to the County and will
11be used to reduce the amount which the County would otherwise
12contribute during succeeding years for all employees.
13    (e) In lieu of establishing a manpower program reserve
14with respect to employees whose wages are funded as
15participants under the Comprehensive Employment and Training
16Act of 1973, as authorized by subsection (d), the board may
17elect to establish a special County contribution rate for all
18such employees. If this option is elected, the County shall
19contribute to the Fund from federal funds provided under the
20Comprehensive Employment and Training Act program at the
21special rate so established and such contributions shall
22become a credit to the County and be used to reduce the amount
23which the County would otherwise contribute during succeeding
24years for all employees.
25    (f) In lieu of levying all or a portion of the tax required
26under this Section in any year, the County may deposit with the

 

 

HB4980- 7 -LRB102 23372 RPS 32540 b

1County treasurer for the benefit of the Fund, to be held in
2accordance with this Article, an amount that, together with
3the taxes levied under this Section for that year, is not less
4than the amount of the County's contributions for that year as
5certified by the board to the County Board. The deposit may be
6derived from any source legally available for that purpose,
7including, but not limited to, the proceeds of County
8borrowings. The making of a deposit shall satisfy fully the
9requirements of this Section for that year to the extent of the
10amounts so deposited; however, such action does not relieve
11the County from fulfilling its obligations of the required
12annual contribution to the Fund pursuant to subsection (a-5).
13Amounts deposited under this subsection may be used by the
14Fund for any of the purposes for which the proceeds of the tax
15levied by the County under this Section may be used, including
16the payment of any amount that is otherwise required by this
17Article to be paid from the proceeds of that tax.
18(Source: P.A. 95-369, eff. 8-23-07.)
 
19    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
20    Sec. 10-107. Financing - Tax levy.
21    (a) The forest preserve district may levy an annual tax on
22the value, as equalized or assessed by the Department of
23Revenue, of all taxable property in the district for the
24purpose of providing revenue for the fund. The rate of such tax
25in any year may not exceed the rate herein specified for that

 

 

HB4980- 8 -LRB102 23372 RPS 32540 b

1year or the rate which will produce, when extended, the sum
2herein stated for that year, whichever is higher: for any year
3prior to 1970, .00103% or $195,000; for the year 1970, .00111%
4or $210,000; for the year 1971, .00116% or $220,000. For the
5year 1972 and each year thereafter, the Forest Preserve
6District shall levy a tax annually at a rate on the dollar of
7the value, as equalized or assessed by the Department of
8Revenue upon all taxable property in the county, when
9extended, not to exceed an amount equal to the total amount of
10contributions by the employees to the fund made in the
11calendar year 2 years prior to the year for which the annual
12applicable tax is levied, multiplied by 1.25 for the year
131972; and by 1.30 for the year 1973 and for each year
14thereafter through levy year 2022. Beginning in levy year
152023, and in each year thereafter, the Forest Preserve
16District shall levy a tax annually at a rate on the dollar of
17the value, as equalized or assessed by the Department of
18Revenue, of all taxable property within the county that will
19produce, when extended, an amount equal to no less than the
20amount of the Forest Preserve District's total required
21contribution to the Fund for the next payment year, as
22determined under subsection (b). For the purposes of this
23Section, the payment year is the year immediately following
24the levy year.
25    The tax shall be levied and collected in like manner with
26the general taxes of the district and shall be in addition to

 

 

HB4980- 9 -LRB102 23372 RPS 32540 b

1the maximum of all other tax rates which the district may levy
2upon the aggregate valuation of all taxable property and shall
3be exclusive of and in addition to the maximum amount and rate
4of taxes the district may levy for general purposes or under
5and by virtue of any laws which limit the amount of tax which
6the district may levy for general purposes. The county clerk
7of the county in which the forest preserve district is located
8in reducing tax levies under the provisions of "An Act
9concerning the levy and extension of taxes", approved May 9,
101901, as amended, shall not consider any such tax as a part of
11the general tax levy for forest preserve purposes, and shall
12not include the same in the limitation of 1% of the assessed
13valuation upon which taxes are required to be extended, and
14shall not reduce the same under the provisions of that Act. The
15proceeds of the tax herein authorized shall be kept as a
16separate fund.
17    The forest preserve district may use other lawfully
18available funds in lieu of all or part of the levy.
19    The Board may establish a manpower program reserve, or a
20special forest preserve district contribution rate, with
21respect to employees whose wages are funded as program
22participants under the Comprehensive Employment and Training
23Act of 1973 in the manner provided in subsection (d) or (e),
24respectively, of Section 9-169.
25    (b)(1) Beginning in payment year 2024, the Forest Preserve
26District's required annual contribution to the Fund for

 

 

HB4980- 10 -LRB102 23372 RPS 32540 b

1payment years 2024 through 2026 shall be: for 2024,
2$6,100,000; for 2025, $8,100,000; and for 2026, $10,200,000.
3    (2) For payment years 2027 through 2064, the Forest
4Preserve District's required annual contribution to the Fund
5shall be the amount determined by the Fund to be equal to the
6sum of (i) the Forest Preserve District's portion of the
7projected normal cost for that fiscal year, plus (ii) an
8amount determined on a level percentage of applicable employee
9payroll basis that is sufficient to bring the total actuarial
10assets of the Fund up to 90% of the total actuarial liabilities
11of the Fund by the end of 2064.
12    (3) For payment years after 2064, 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 90% of the total actuarial
16liabilities of the Fund by the end of the year.
17    (4) In making the determinations under paragraphs (2) and
18(3), the actuarial calculations shall be determined under the
19entry age normal actuarial cost method, and any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following the fiscal year.
23    (5) To the extent that the Forest Preserve District's
24contribution for any of the payment years referenced in this
25subsection is made with property taxes, those property taxes
26shall be levied, collected, and paid to the Fund in a like

 

 

HB4980- 11 -LRB102 23372 RPS 32540 b

1manner with the general taxes of the Forest Preserve District.
2    (c) In lieu of levying all or a portion of the tax required
3under this Section in any year, the Forest Preserve District
4may deposit with the Forest Preserve District treasurer for
5the benefit of the Fund, to be held in accordance with this
6Article, an amount that, together with the taxes levied under
7this Section for that year, is not less than the amount of the
8Forest Preserve District contributions for that year as
9certified by the board to the Forest Preserve District. The
10deposit may be derived from any source legally available for
11that purpose, including, but not limited to, the proceeds of
12Forest Preserve District borrowings. The making of a deposit
13shall satisfy fully the requirements of this Section for that
14year to the extent of the amounts so deposited; however, such
15action does not relieve the Forest Preserve District from
16fulfilling its obligations of the required annual contribution
17to the Fund pursuant to subsection (b). Amounts deposited
18under this subsection may be used by the Fund for any of the
19purposes for which the proceeds of the tax levied by the Forest
20Preserve District under this Section may be used, including
21the payment of any amount that is otherwise required by this
22Article to be paid from the proceeds of that tax.
23(Source: P.A. 102-210, eff. 1-1-22.)
 
24    Section 90. The State Mandates Act is amended by adding
25Section 8.46 as follows:
 

 

 

HB4980- 12 -LRB102 23372 RPS 32540 b

1    (30 ILCS 805/8.46 new)
2    Sec. 8.46. Exempt mandate. Notwithstanding Sections 6 and
38 of this Act, no reimbursement by the State is required for
4the implementation of any mandate created by this amendatory
5Act of the 102nd General Assembly.