Sen. Napoleon Harris, III
Filed: 5/9/2018
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1 | AMENDMENT TO SENATE BILL 370
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2 | AMENDMENT NO. ______. Amend Senate Bill 370 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 3-125 and 4-118 as follows:
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6 | (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
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7 | Sec. 3-125. Financing. | ||||||
8 | (a) The city council or the board of trustees of
the | ||||||
9 | municipality shall annually levy a tax upon all
the taxable | ||||||
10 | property of the municipality at the rate on the dollar which
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11 | will produce an amount which, when added to the deductions from | ||||||
12 | the salaries
or wages of police officers, and revenues
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13 | available from other
sources, will equal a sum sufficient to | ||||||
14 | meet
the annual requirements of the police pension fund. The | ||||||
15 | annual
requirements to be provided by such tax levy are equal
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16 | to (1) the normal cost of the pension fund for the year |
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1 | involved, plus
(2) an amount sufficient to bring the total | ||||||
2 | assets of the pension fund up to 90% of the total actuarial | ||||||
3 | liabilities of the pension fund by the end of municipal fiscal | ||||||
4 | year 2040, as annually updated and determined by an enrolled | ||||||
5 | actuary employed by the Illinois Department of Insurance or by | ||||||
6 | an enrolled actuary retained by the pension fund or the | ||||||
7 | municipality. In making these determinations, the required | ||||||
8 | minimum employer contribution shall be calculated each year as | ||||||
9 | a level percentage of payroll over the years remaining up to | ||||||
10 | and including fiscal year 2040 and shall be determined under | ||||||
11 | the projected unit credit actuarial cost method. The tax shall | ||||||
12 | be levied and
collected in the same manner as the general taxes
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13 | of the municipality, and in addition to all other taxes now or | ||||||
14 | hereafter authorized to
be levied upon all property within the | ||||||
15 | municipality, and shall be in
addition to the amount authorized | ||||||
16 | to be levied for general purposes as
provided by Section 8-3-1 | ||||||
17 | of the Illinois Municipal Code, approved May
29, 1961, as | ||||||
18 | amended. The tax shall be forwarded directly to the treasurer | ||||||
19 | of the board within 30 business days after receipt by the | ||||||
20 | county.
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21 | (b) For purposes of determining the required employer | ||||||
22 | contribution to a pension fund, the value of the pension fund's | ||||||
23 | assets shall be equal to the actuarial value of the pension | ||||||
24 | fund's assets, which shall be calculated as follows: | ||||||
25 | (1) On March 30, 2011, the actuarial value of a pension | ||||||
26 | fund's assets shall be equal to the market value of the |
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1 | assets as of that date. | ||||||
2 | (2) In determining the actuarial value of the System's | ||||||
3 | assets for fiscal years after March 30, 2011, any actuarial | ||||||
4 | gains or losses from investment return incurred in a fiscal | ||||||
5 | year shall be recognized in equal annual amounts over the | ||||||
6 | 5-year period following that fiscal year. | ||||||
7 | (c) Except as provided in subsection (c-5), if If a | ||||||
8 | participating municipality fails to transmit to the fund | ||||||
9 | contributions required of it under this Article for more than | ||||||
10 | 90 days after the payment of those contributions is due, the | ||||||
11 | fund may, after giving notice to the municipality, certify to | ||||||
12 | the State Comptroller the amounts of the delinquent payments in | ||||||
13 | accordance with any applicable rules of the Comptroller, and | ||||||
14 | the Comptroller must, beginning in fiscal year 2016, deduct and | ||||||
15 | remit to the fund the certified amounts or a portion of those | ||||||
16 | amounts from the following proportions of payments of State | ||||||
17 | funds to the municipality: | ||||||
18 | (1) in fiscal year 2016, one-third of the total amount | ||||||
19 | of any payments of State funds to the municipality; | ||||||
20 | (2) in fiscal year 2017, two-thirds of the total amount | ||||||
21 | of any payments of State funds to the municipality; and | ||||||
22 | (3) in fiscal year 2018 and each fiscal year | ||||||
23 | thereafter, the total amount of any payments of State funds | ||||||
24 | to the municipality. | ||||||
25 | The State Comptroller may not deduct from any payments of | ||||||
26 | State funds to the municipality more than the amount of |
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1 | delinquent payments certified to the State Comptroller by the | ||||||
2 | fund. | ||||||
3 | (c-5) As used in this subsection, "distressed | ||||||
4 | municipality" means a participating municipality that: (A) has | ||||||
5 | a population of 30% or more at or below the federal poverty | ||||||
6 | threshold and has a median property value of owner-occupied | ||||||
7 | housing units below $75,000, as determined by the most recent | ||||||
8 | published estimates of the United States Census Bureau; or (B) | ||||||
9 | is certified by the Department of Revenue as being in the | ||||||
10 | highest 5% of all home rule municipalities in terms of the | ||||||
11 | aggregate of the rate percent of all taxes levied in accordance | ||||||
12 | with statute or ordinance upon all property of the municipality | ||||||
13 | and is certified by the Department of Revenue as being in the | ||||||
14 | lowest 5% of all home rule municipalities in terms of per | ||||||
15 | capita tax yield. | ||||||
16 | If a distressed municipality fails to transmit to the fund | ||||||
17 | contributions required of it under this Article for more than | ||||||
18 | 180 days after the payment of those contributions is due, then | ||||||
19 | the fund may, after giving notice to the municipality, certify | ||||||
20 | to the State Comptroller the amount of the delinquent payments | ||||||
21 | in accordance with any applicable rules of the Comptroller, and | ||||||
22 | the Comptroller must, beginning in fiscal year 2020, deduct and | ||||||
23 | remit to the fund the certified amounts from the total amount | ||||||
24 | of any payments of State funds to the municipality. | ||||||
25 | The State Comptroller may not deduct from any payments of | ||||||
26 | State funds to the distressed municipality more than the amount |
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1 | of delinquent payments certified to the State Comptroller by | ||||||
2 | the fund. A distressed municipality is not subject to the | ||||||
3 | provisions of subsection (c). | ||||||
4 | (d) The police pension fund shall consist of the following | ||||||
5 | moneys which
shall be set apart by the treasurer of the | ||||||
6 | municipality:
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7 | (1) All moneys derived from the taxes levied hereunder;
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8 | (2) Contributions by police officers under Section | ||||||
9 | 3-125.1;
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10 | (3) All moneys accumulated by the municipality under | ||||||
11 | any previous
legislation establishing a fund for the | ||||||
12 | benefit of disabled or retired
police officers;
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13 | (4) Donations, gifts or other transfers authorized by | ||||||
14 | this
Article.
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15 | (e) The Commission on Government Forecasting and
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16 | Accountability shall conduct a study of all funds established
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17 | under this Article and shall report its findings to the General
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18 | Assembly on or before January 1, 2013. To the fullest extent | ||||||
19 | possible, the study shall include, but not be limited to, the | ||||||
20 | following: | ||||||
21 | (1) fund balances; | ||||||
22 | (2) historical employer contribution rates for each
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23 | fund; | ||||||
24 | (3) the actuarial formulas used as a basis for employer
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25 | contributions, including the actual assumed rate of return
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26 | for each year, for each fund; |
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1 | (4) available contribution funding sources; | ||||||
2 | (5) the impact of any revenue limitations caused by
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3 | PTELL and employer home rule or non-home rule status; and | ||||||
4 | (6) existing statutory funding compliance procedures
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5 | and funding enforcement mechanisms for all municipal
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6 | pension funds. | ||||||
7 | (Source: P.A. 99-8, eff. 7-9-15.)
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8 | (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
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9 | Sec. 4-118. Financing.
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10 | (a) The city council or the board of trustees
of the | ||||||
11 | municipality shall annually levy a tax upon all the taxable | ||||||
12 | property
of the municipality at the rate on the dollar which | ||||||
13 | will produce an amount
which, when added to the deductions from | ||||||
14 | the salaries or wages of
firefighters and revenues available | ||||||
15 | from other sources, will equal a sum
sufficient to meet the | ||||||
16 | annual actuarial requirements of the pension fund,
as | ||||||
17 | determined by an enrolled actuary employed by the Illinois | ||||||
18 | Department of
Insurance or by an enrolled actuary retained by | ||||||
19 | the pension fund or
municipality. For the purposes of this | ||||||
20 | Section, the annual actuarial
requirements of the pension fund | ||||||
21 | are equal to (1) the normal cost of the
pension fund, or 17.5% | ||||||
22 | of the salaries and wages to be paid to firefighters
for the | ||||||
23 | year involved, whichever is greater, plus (2) an annual amount
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24 | sufficient to bring the total assets of the pension fund up to | ||||||
25 | 90% of the total actuarial liabilities of the pension fund by |
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1 | the end of municipal fiscal year 2040, as annually updated and | ||||||
2 | determined by an enrolled actuary employed by the Illinois | ||||||
3 | Department of Insurance or by an enrolled actuary retained by | ||||||
4 | the pension fund or the municipality. In making these | ||||||
5 | determinations, the required minimum employer contribution | ||||||
6 | shall be calculated each year as a level percentage of payroll | ||||||
7 | over the years remaining up to and including fiscal year 2040 | ||||||
8 | and shall be determined under the projected unit credit | ||||||
9 | actuarial cost method. The amount
to be applied towards the | ||||||
10 | amortization of the unfunded accrued liability in any
year | ||||||
11 | shall not be less than the annual amount required to amortize | ||||||
12 | the unfunded
accrued liability, including interest, as a level | ||||||
13 | percentage of payroll over
the number of years remaining in the | ||||||
14 | 40 year amortization period.
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15 | (a-5) For purposes of determining the required employer | ||||||
16 | contribution to a pension fund, the value of the pension fund's | ||||||
17 | assets shall be equal to the actuarial value of the pension | ||||||
18 | fund's assets, which shall be calculated as follows: | ||||||
19 | (1) On March 30, 2011, the actuarial value of a pension | ||||||
20 | fund's assets shall be equal to the market value of the | ||||||
21 | assets as of that date. | ||||||
22 | (2) In determining the actuarial value of the pension | ||||||
23 | fund's assets for fiscal years after March 30, 2011, any | ||||||
24 | actuarial gains or losses from investment return incurred | ||||||
25 | in a fiscal year shall be recognized in equal annual | ||||||
26 | amounts over the 5-year period following that fiscal year. |
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1 | (b) The tax shall be levied and collected in the same | ||||||
2 | manner
as the general taxes of the municipality, and shall be | ||||||
3 | in addition
to all other taxes now or hereafter authorized to | ||||||
4 | be levied upon all
property within the municipality, and in | ||||||
5 | addition to the amount authorized
to be levied for general | ||||||
6 | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | ||||||
7 | under Section 14 of the Fire Protection District Act. The
tax | ||||||
8 | shall be forwarded directly to the treasurer of the board | ||||||
9 | within 30
business days of receipt by the county
(or, in the | ||||||
10 | case of amounts
added to the tax levy under subsection (f), | ||||||
11 | used by the municipality to pay the
employer contributions | ||||||
12 | required under subsection (b-1) of Section 15-155 of
this | ||||||
13 | Code).
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14 | (b-5) Except as provided in subsection (b-10), if If a | ||||||
15 | participating municipality fails to transmit to the fund | ||||||
16 | contributions required of it under this Article for more than | ||||||
17 | 90 days after the payment of those contributions is due, the | ||||||
18 | fund may, after giving notice to the municipality, certify to | ||||||
19 | the State Comptroller the amounts of the delinquent payments in | ||||||
20 | accordance with any applicable rules of the Comptroller, and | ||||||
21 | the Comptroller must, beginning in fiscal year 2016, deduct and | ||||||
22 | remit to the fund the certified amounts or a portion of those | ||||||
23 | amounts from the following proportions of payments of State | ||||||
24 | funds to the municipality: | ||||||
25 | (1) in fiscal year 2016, one-third of the total amount | ||||||
26 | of any payments of State funds to the municipality; |
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1 | (2) in fiscal year 2017, two-thirds of the total amount | ||||||
2 | of any payments of State funds to the municipality; and | ||||||
3 | (3) in fiscal year 2018 and each fiscal year | ||||||
4 | thereafter, the total amount of any payments of State funds | ||||||
5 | to the municipality. | ||||||
6 | The State Comptroller may not deduct from any payments of | ||||||
7 | State funds to the municipality more than the amount of | ||||||
8 | delinquent payments certified to the State Comptroller by the | ||||||
9 | fund. | ||||||
10 | (b-10) As used in this subsection, "distressed | ||||||
11 | municipality" means a participating municipality that: (A) has | ||||||
12 | a population of 30% or more at or below the federal poverty | ||||||
13 | threshold and has a median property value of owner-occupied | ||||||
14 | housing units below $75,000, as determined by the most recent | ||||||
15 | published estimates of the United States Census Bureau; or (B) | ||||||
16 | is certified by the Department of Revenue as being in the | ||||||
17 | highest 5% of all home rule municipalities in terms of the | ||||||
18 | aggregate of the rate percent of all taxes levied in accordance | ||||||
19 | with statute or ordinance upon all property of the municipality | ||||||
20 | and is certified by the Department of Revenue as being in the | ||||||
21 | lowest 5% of all home rule municipalities in terms of per | ||||||
22 | capita tax yield. | ||||||
23 | If a distressed municipality fails to transmit to the fund | ||||||
24 | contributions required of it under this Article for more than | ||||||
25 | 180 days after the payment of those contributions is due, then | ||||||
26 | the fund may, after giving notice to the municipality, certify |
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1 | to the State Comptroller the amount of the delinquent payments | ||||||
2 | in accordance with any applicable rules of the Comptroller, and | ||||||
3 | the Comptroller must, beginning in fiscal year 2020, deduct and | ||||||
4 | remit to the fund the certified amounts from the total amount | ||||||
5 | of any payments of State funds to the municipality. | ||||||
6 | The State Comptroller may not deduct from any payments of | ||||||
7 | State funds to the distressed municipality more than the amount | ||||||
8 | of delinquent payments certified to the State Comptroller by | ||||||
9 | the fund. A distressed municipality is not subject to the | ||||||
10 | provisions of subsection (b-5). | ||||||
11 | (c) The board shall make available to the membership and | ||||||
12 | the general public
for inspection and copying at reasonable | ||||||
13 | times the most recent Actuarial
Valuation Balance Sheet and Tax | ||||||
14 | Levy Requirement issued to the fund by the
Department of | ||||||
15 | Insurance.
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16 | (d) The firefighters' pension fund shall consist of the | ||||||
17 | following moneys
which shall be set apart by the treasurer of | ||||||
18 | the municipality: (1) all
moneys derived from the taxes levied | ||||||
19 | hereunder; (2) contributions
by firefighters as provided under | ||||||
20 | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | ||||||
21 | emoluments that may be paid or given
for or on account of | ||||||
22 | extraordinary service by the fire department or any
member | ||||||
23 | thereof, except when allowed to be retained by competitive | ||||||
24 | awards;
and (4) any money, real estate or personal property | ||||||
25 | received by the board.
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26 | (e) For the purposes of this Section, "enrolled actuary" |
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1 | means an actuary:
(1) who is a member of the Society of | ||||||
2 | Actuaries or the American
Academy of Actuaries; and (2) who is | ||||||
3 | enrolled under Subtitle
C of Title III of the Employee | ||||||
4 | Retirement Income Security Act of 1974, or
who has been engaged | ||||||
5 | in providing actuarial services to one or more public
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6 | retirement systems for a period of at least 3 years as of July | ||||||
7 | 1, 1983.
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8 | (f) The corporate authorities of a municipality that | ||||||
9 | employs a person
who is described in subdivision (d) of Section | ||||||
10 | 4-106 may add to the tax levy
otherwise provided for in this | ||||||
11 | Section an amount equal to the projected cost of
the employer | ||||||
12 | contributions required to be paid by the municipality to the | ||||||
13 | State
Universities Retirement System under subsection (b-1) of | ||||||
14 | Section 15-155 of this
Code. | ||||||
15 | (g) The Commission on Government Forecasting and
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16 | Accountability shall conduct a study of all funds established
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17 | under this Article and shall report its findings to the General
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18 | Assembly on or before January 1, 2013. To the fullest extent | ||||||
19 | possible, the study shall include, but not be limited to, the | ||||||
20 | following: | ||||||
21 | (1) fund balances; | ||||||
22 | (2) historical employer contribution rates for each
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23 | fund; | ||||||
24 | (3) the actuarial formulas used as a basis for employer
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25 | contributions, including the actual assumed rate of return
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26 | for each year, for each fund; |
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1 | (4) available contribution funding sources; | ||||||
2 | (5) the impact of any revenue limitations caused by
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3 | PTELL and employer home rule or non-home rule status; and | ||||||
4 | (6) existing statutory funding compliance procedures
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5 | and funding enforcement mechanisms for all municipal
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6 | pension funds.
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7 | (Source: P.A. 99-8, eff. 7-9-15.)
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.".
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