Full Text of SB0530 97th General Assembly
SB0530 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB0530 Introduced 2/8/2011, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 |
| Amends the General Assembly Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
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| | | PENSION IMPACT NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Section 2-124 as follows:
| 6 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 7 | | Sec. 2-124. Contributions by State.
| 8 | | (a) The
The State shall make contributions to the System by
| 9 | | appropriations of amounts which, together with the | 10 | | contributions of
participants, interest earned on investments, | 11 | | and other income
will meet the cost of maintaining and | 12 | | administering the System on a 90%
funded basis in accordance | 13 | | with actuarial recommendations. | 14 | | (b) The Board shall determine the amount of State
| 15 | | contributions required for each fiscal year on the basis of the
| 16 | | actuarial tables and other assumptions adopted by the Board and | 17 | | the
prescribed rate of interest, using the formula in | 18 | | subsection (c).
| 19 | | (c) For State fiscal years 2011 through 2045, the minimum | 20 | | contribution
to the System to be made by the State for each | 21 | | fiscal year shall be an amount
determined by the System to be | 22 | | sufficient to bring the total assets of the
System up to 90% of | 23 | | the total actuarial liabilities of the System by the end of
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| 1 | | State fiscal year 2045. In making these determinations, the | 2 | | required State
contribution shall be calculated each year as a | 3 | | level percentage of payroll
over the years remaining to and | 4 | | including fiscal year 2045 and shall be
determined under the | 5 | | projected unit credit actuarial cost method.
| 6 | | For State fiscal years 1996 through 2005, the State | 7 | | contribution to
the System, as a percentage of the applicable | 8 | | employee payroll, shall be
increased in equal annual increments | 9 | | so that by State fiscal year 2011, the
State is contributing at | 10 | | the rate required under this Section.
| 11 | | Notwithstanding any other provision of this Article, the | 12 | | total required State
contribution for State fiscal year 2006 is | 13 | | $4,157,000.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State
contribution for State fiscal year 2007 is | 16 | | $5,220,300.
| 17 | | For each of State fiscal years 2008 through 2009, the State | 18 | | contribution to
the System, as a percentage of the applicable | 19 | | employee payroll, shall be
increased in equal annual increments | 20 | | from the required State contribution for State fiscal year | 21 | | 2007, so that by State fiscal year 2011, the
State is | 22 | | contributing at the rate otherwise required under this Section.
| 23 | | Notwithstanding any other provision of this Article, the | 24 | | total required State contribution for State fiscal year 2010 is | 25 | | $10,454,000 and shall be made from the proceeds of bonds sold | 26 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
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| 1 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 2 | | expenses determined by the System's share of total bond | 3 | | proceeds, (ii) any amounts received from the General Revenue | 4 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 5 | | proceeds due to the issuance of discounted bonds, if | 6 | | applicable. | 7 | | Beginning in State fiscal year 2046, the minimum State | 8 | | contribution for
each fiscal year shall be the amount needed to | 9 | | maintain the total assets of
the System at 90% of the total | 10 | | actuarial liabilities of the System.
| 11 | | Amounts received by the System pursuant to Section 25 of | 12 | | the Budget Stabilization Act or Section 8.12 of the State | 13 | | Finance Act in any fiscal year do not reduce and do not | 14 | | constitute payment of any portion of the minimum State | 15 | | contribution required under this Article in that fiscal year. | 16 | | Such amounts shall not reduce, and shall not be included in the | 17 | | calculation of, the required State contributions under this | 18 | | Article in any future year until the System has reached a | 19 | | funding ratio of at least 90%. A reference in this Article to | 20 | | the "required State contribution" or any substantially similar | 21 | | term does not include or apply to any amounts payable to the | 22 | | System under Section 25 of the Budget Stabilization Act.
| 23 | | Notwithstanding any other provision of this Section, the | 24 | | required State
contribution for State fiscal year 2005 and for | 25 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 26 | | under this Section and
certified under Section 2-134, shall not |
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| 1 | | exceed an amount equal to (i) the
amount of the required State | 2 | | contribution that would have been calculated under
this Section | 3 | | for that fiscal year if the System had not received any | 4 | | payments
under subsection (d) of Section 7.2 of the General | 5 | | Obligation Bond Act, minus
(ii) the portion of the State's | 6 | | total debt service payments for that fiscal
year on the bonds | 7 | | issued for the purposes of that Section 7.2, as determined
and | 8 | | certified by the Comptroller, that is the same as the System's | 9 | | portion of
the total moneys distributed under subsection (d) of | 10 | | Section 7.2 of the General
Obligation Bond Act. In determining | 11 | | this maximum for State fiscal years 2008 through 2010, however, | 12 | | the amount referred to in item (i) shall be increased, as a | 13 | | percentage of the applicable employee payroll, in equal | 14 | | increments calculated from the sum of the required State | 15 | | contribution for State fiscal year 2007 plus the applicable | 16 | | portion of the State's total debt service payments for fiscal | 17 | | year 2007 on the bonds issued for the purposes of Section 7.2 | 18 | | of the General
Obligation Bond Act, so that, by State fiscal | 19 | | year 2011, the
State is contributing at the rate otherwise | 20 | | required under this Section.
| 21 | | (d) For purposes of determining the required State | 22 | | contribution to the System, the value of the System's assets | 23 | | shall be equal to the actuarial value of the System's assets, | 24 | | which shall be calculated as follows: | 25 | | As of June 30, 2008, the actuarial value of the System's | 26 | | assets shall be equal to the market value of the assets as of |
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| 1 | | that date. In determining the actuarial value of the System's | 2 | | assets for fiscal years after June 30, 2008, any actuarial | 3 | | gains or losses from investment return incurred in a fiscal | 4 | | year shall be recognized in equal annual amounts over the | 5 | | 5-year period following that fiscal year. | 6 | | (e) For purposes of determining the required State | 7 | | contribution to the system for a particular year, the actuarial | 8 | | value of assets shall be assumed to earn a rate of return equal | 9 | | to the system's actuarially assumed rate of return. | 10 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
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