Full Text of SB2795 095th General Assembly
SB2795 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2795
Introduced 2/15/2008, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/2-124 |
from Ch. 108 1/2, par. 2-124 |
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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 | |
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A BILL FOR
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SB2795 |
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LRB095 19064 AMC 45255 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 2-124 as follows:
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| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| Sec. 2-124. Contributions by State.
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| (a) The The State shall make contributions to the System by
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| 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.
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| (b) The Board shall determine the amount of State
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| contributions required for each fiscal year on the basis of the
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| actuarial tables and other assumptions adopted by the Board and | 17 |
| the
prescribed rate of interest, using the formula in | 18 |
| subsection (c).
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| (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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SB2795 |
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LRB095 19064 AMC 45255 b |
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| 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.
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| 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.
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| Notwithstanding any other provision of this Article, the | 12 |
| total required State
contribution for State fiscal year 2006 is | 13 |
| $4,157,000.
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| Notwithstanding any other provision of this Article, the | 15 |
| total required State
contribution for State fiscal year 2007 is | 16 |
| $5,220,300.
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| For each of State fiscal years 2008 through 2010, 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.
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| Beginning in State fiscal year 2046, the minimum State | 24 |
| contribution for
each fiscal year shall be the amount needed to | 25 |
| maintain the total assets of
the System at 90% of the total | 26 |
| actuarial liabilities of the System.
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SB2795 |
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LRB095 19064 AMC 45255 b |
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| Amounts received by the System pursuant to Section 25 of | 2 |
| the Budget Stabilization Act in any fiscal year do not reduce | 3 |
| and do not constitute payment of any portion of the minimum | 4 |
| State contribution required under this Article in that fiscal | 5 |
| year. Such amounts shall not reduce, and shall not be included | 6 |
| in the calculation of, the required State contributions under | 7 |
| this Article in any future year until the System has reached a | 8 |
| funding ratio of at least 90%. A reference in this Article to | 9 |
| the "required State contribution" or any substantially similar | 10 |
| term does not include or apply to any amounts payable to the | 11 |
| System under Section 25 of the Budget Stabilization Act.
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| Notwithstanding any other provision of this Section, the | 13 |
| required State
contribution for State fiscal year 2005 and for | 14 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 15 |
| under this Section and
certified under Section 2-134, shall not | 16 |
| exceed an amount equal to (i) the
amount of the required State | 17 |
| contribution that would have been calculated under
this Section | 18 |
| for that fiscal year if the System had not received any | 19 |
| payments
under subsection (d) of Section 7.2 of the General | 20 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 21 |
| total debt service payments for that fiscal
year on the bonds | 22 |
| issued for the purposes of that Section 7.2, as determined
and | 23 |
| certified by the Comptroller, that is the same as the System's | 24 |
| portion of
the total moneys distributed under subsection (d) of | 25 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 26 |
| this maximum for State fiscal years 2008 through 2010, however, |
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LRB095 19064 AMC 45255 b |
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| the amount referred to in item (i) shall be increased, as a | 2 |
| percentage of the applicable employee payroll, in equal | 3 |
| increments calculated from the sum of the required State | 4 |
| contribution for State fiscal year 2007 plus the applicable | 5 |
| portion of the State's total debt service payments for fiscal | 6 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 7 |
| of the General
Obligation Bond Act, so that, by State fiscal | 8 |
| year 2011, the
State is contributing at the rate otherwise | 9 |
| required under this Section.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 11 |
| eff. 6-6-06.)
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