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91_SB0133
LRB9100806EGfg
1 AN ACT to provide additional State funding for the Public
2 School Teachers' Pension and Retirement Fund of Chicago,
3 amending a named Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 17-127, 22-1001, and 22-1003 as follows:
8 (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
9 Sec. 17-127. Financing; revenues for the Fund.
10 (a) The revenues for the Fund shall consist of: (1)
11 amounts paid into the Fund by contributors thereto and from
12 employer contributions and State appropriations in accordance
13 with this Article; (2) amounts contributed to the Fund by an
14 Employer; (3) amounts contributed to the Fund pursuant to any
15 law now in force or hereafter to be enacted; (4)
16 contributions from any other source; and (5) the earnings on
17 investments.
18 (b) The General Assembly finds that for many years the
19 State has contributed to the Fund an annual amount that is
20 between 20% and 30% of the amount of the annual State
21 contribution to the Article 16 retirement system, and the
22 General Assembly declares that it is its goal and intention
23 to continue this level of contribution to the Fund in State
24 fiscal years 1995, 1996, 1997, 1998, 1999, and 2000 the
25 future.
26 (c) Beginning in State fiscal year 2001, the State
27 contribution, as a percentage of the applicable employee
28 payroll, shall be increased in equal annual increments over a
29 7-year phase-in period until the following funding level is
30 achieved. Beginning in State fiscal year 2008, the State of
31 Illinois shall make annual contributions to the Fund that are
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1 sufficient, in combination with the the other revenues
2 available to the Fund, to meet the normal cost and amortize
3 the unfunded liability of the Fund over 40 years (beginning
4 in fiscal year 2008) as a level percentage of payroll,
5 determined under the projected unit credit actuarial cost
6 method.
7 (d) Beginning in State fiscal year 1999, the State shall
8 include in its annual contribution to the Fund an additional
9 amount equal to 0.544% of the Fund's total teacher payroll;
10 except that this additional contribution need not be made in
11 a fiscal year if the Board has certified in the previous
12 fiscal year that the Fund is at least 90% funded, based on
13 actuarial determinations. These additional State
14 contributions are intended to offset a portion of the cost to
15 the Fund of the increases in retirement benefits resulting
16 from Public this amendatory Act 90-582 of 1998.
17 (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
18 90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
19 (40 ILCS 5/22-1001) (from Ch. 108 1/2, par. 22-1001)
20 Sec. 22-1001. Submission of information. By March 1 of
21 each year, the retirement systems created under Articles 2,
22 14, 15, 16, 17, and 18 of this Code shall each submit the
23 following information to the Pension Laws Commission:
24 (1) The most recent actuarial valuation computed
25 using the projected unit credit actuarial cost method for
26 retirement and ancillary benefits.
27 (2) A full disclosure of the provisions of the
28 plan; economic, mortality, termination, and demographic
29 assumptions used for the valuation; methods used to
30 determine the actuarial values; the impact of significant
31 changes in the actuarial assumptions and methods; the
32 most recent experience review; and other information
33 affecting the plan's actuarial status.
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1 (3) The State's share of the amount necessary to
2 fund the normal cost plus interest on the unfunded
3 accrued liability for the next fiscal year as determined
4 by the projected unit credit computations.
5 (4) A five-year history of the system's
6 liabilities, assets (valued at cost), and unfunded
7 liabilities.
8 (5) The July 1 market value of system assets and a
9 five-year history of annual and annualized investment
10 returns of the system's total portfolio and each segment
11 of the portfolio.; and
12 (6) Measures of financial status, including
13 ten-year trends of: unfunded liabilities, funded ratios,
14 quick liability ratios, current reserves, and other
15 solvency tests requested by the Commission.
16 For plan years ending prior to December 31, 1984, the
17 historical data submitted by the retirement systems pursuant
18 to items (4) and (6) above may be based on a cost method
19 other than the projected unit credit actuarial cost method.
20 In submitting the data, the retirement systems shall specify
21 the method used.
22 (Source: P.A. 89-113, eff. 7-7-95.)
23 (40 ILCS 5/22-1003) (from Ch. 108 1/2, par. 22-1003)
24 Sec. 22-1003. The Pension Laws Commission shall receive
25 the information specified in Section 22-1001 and Section
26 22-1002 of this Act. Commission staff shall examine the
27 information and submit a report of the analysis thereof to
28 the General Assembly. The report shall also include either
29 an analysis of the effect of the different economic
30 assumptions used by the 6 the 5 systems, or supplemental
31 valuations using the same economic assumptions for all 6 all
32 5 systems. The Commission shall compare (1) each system's
33 required actuarial funding computed using the projected unit
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1 credit actuarial cost method, and (2) the required State
2 contribution levels established by Public Act 88-593. The
3 report shall also identify the amount of the required funding
4 for each system expected to come from (i) budgeted annual
5 appropriations and (ii) continuing appropriations under the
6 State Pension Funds Continuing Appropriation Act.
7 The Commission shall also compute multiple year
8 projections showing the effect on system liabilities and the
9 State's annual cost (1) if the systems were to be funded
10 according to actuarial recommendations that the Commission
11 deems reasonable, (2) if each system were to be funded
12 according to recommendations made by the system's actuary,
13 and (3) if the systems were to be funded according to the
14 required State contribution levels established by Public Act
15 88-593; including (i) comparisons of State costs with
16 projected benefit payments, payroll, and the general funds
17 budget, and (ii) comparisons of unfunded liabilities, funded
18 ratios, solvency tests, and projected reserves. The
19 Commission may conduct additional analyses and projections as
20 it deems useful.
21 (Source: P.A. 89-113, eff. 7-7-95.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.