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Illinois House Bill HB1191

Illinois 2023-2024 Regular Session

Illinois House Bill HB1191 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1191 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-131 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State. LRB103 05730 RPS 50750 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1191 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-131 40 ILCS 5/14-131 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State. LRB103 05730 RPS 50750 b LRB103 05730 RPS 50750 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1191 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/14-131 40 ILCS 5/14-131
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55 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
66 LRB103 05730 RPS 50750 b LRB103 05730 RPS 50750 b
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1111 1 AN ACT concerning public employee benefits.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Illinois Pension Code is amended by
1515 5 changing Section 14-131 as follows:
1616 6 (40 ILCS 5/14-131)
1717 7 Sec. 14-131. Contributions by State.
1818 8 (a) The The State shall make contributions to the System
1919 9 by appropriations of amounts which, together with other
2020 10 employer contributions from trust, federal, and other funds,
2121 11 employee contributions, investment income, and other income,
2222 12 will be sufficient to meet the cost of maintaining and
2323 13 administering the System on a 90% funded basis in accordance
2424 14 with actuarial recommendations.
2525 15 For the purposes of this Section and Section 14-135.08,
2626 16 references to State contributions refer only to employer
2727 17 contributions and do not include employee contributions that
2828 18 are picked up or otherwise paid by the State or a department on
2929 19 behalf of the employee.
3030 20 (b) The Board shall determine the total amount of State
3131 21 contributions required for each fiscal year on the basis of
3232 22 the actuarial tables and other assumptions adopted by the
3333 23 Board, using the formula in subsection (e).
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1191 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
3838 40 ILCS 5/14-131 40 ILCS 5/14-131
3939 40 ILCS 5/14-131
4040 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
4141 LRB103 05730 RPS 50750 b LRB103 05730 RPS 50750 b
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4343 A BILL FOR
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6868 1 The Board shall also determine a State contribution rate
6969 2 for each fiscal year, expressed as a percentage of payroll,
7070 3 based on the total required State contribution for that fiscal
7171 4 year (less the amount received by the System from
7272 5 appropriations under Section 8.12 of the State Finance Act and
7373 6 Section 1 of the State Pension Funds Continuing Appropriation
7474 7 Act, if any, for the fiscal year ending on the June 30
7575 8 immediately preceding the applicable November 15 certification
7676 9 deadline), the estimated payroll (including all forms of
7777 10 compensation) for personal services rendered by eligible
7878 11 employees, and the recommendations of the actuary.
7979 12 For the purposes of this Section and Section 14.1 of the
8080 13 State Finance Act, the term "eligible employees" includes
8181 14 employees who participate in the System, persons who may elect
8282 15 to participate in the System but have not so elected, persons
8383 16 who are serving a qualifying period that is required for
8484 17 participation, and annuitants employed by a department as
8585 18 described in subdivision (a)(1) or (a)(2) of Section 14-111.
8686 19 (c) Contributions shall be made by the several departments
8787 20 for each pay period by warrants drawn by the State Comptroller
8888 21 against their respective funds or appropriations based upon
8989 22 vouchers stating the amount to be so contributed. These
9090 23 amounts shall be based on the full rate certified by the Board
9191 24 under Section 14-135.08 for that fiscal year. From March 5,
9292 25 2004 (the effective date of Public Act 93-665) through the
9393 26 payment of the final payroll from fiscal year 2004
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104104 1 appropriations, the several departments shall not make
105105 2 contributions for the remainder of fiscal year 2004 but shall
106106 3 instead make payments as required under subsection (a-1) of
107107 4 Section 14.1 of the State Finance Act. The several departments
108108 5 shall resume those contributions at the commencement of fiscal
109109 6 year 2005.
110110 7 (c-1) Notwithstanding subsection (c) of this Section, for
111111 8 fiscal years 2010, 2012, and each fiscal year thereafter,
112112 9 contributions by the several departments are not required to
113113 10 be made for General Revenue Funds payrolls processed by the
114114 11 Comptroller. Payrolls paid by the several departments from all
115115 12 other State funds must continue to be processed pursuant to
116116 13 subsection (c) of this Section.
117117 14 (c-2) For State fiscal years 2010, 2012, and each fiscal
118118 15 year thereafter, on or as soon as possible after the 15th day
119119 16 of each month, the Board shall submit vouchers for payment of
120120 17 State contributions to the System, in a total monthly amount
121121 18 of one-twelfth of the fiscal year General Revenue Fund
122122 19 contribution as certified by the System pursuant to Section
123123 20 14-135.08 of the Illinois Pension Code.
124124 21 (d) If an employee is paid from trust funds or federal
125125 22 funds, the department or other employer shall pay employer
126126 23 contributions from those funds to the System at the certified
127127 24 rate, unless the terms of the trust or the federal-State
128128 25 agreement preclude the use of the funds for that purpose, in
129129 26 which case the required employer contributions shall be paid
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140140 1 by the State.
141141 2 (e) For State fiscal years 2012 through 2045, the minimum
142142 3 contribution to the System to be made by the State for each
143143 4 fiscal year shall be an amount determined by the System to be
144144 5 sufficient to bring the total assets of the System up to 90% of
145145 6 the total actuarial liabilities of the System by the end of
146146 7 State fiscal year 2045. In making these determinations, the
147147 8 required State contribution shall be calculated each year as a
148148 9 level percentage of payroll over the years remaining to and
149149 10 including fiscal year 2045 and shall be determined under the
150150 11 projected unit credit actuarial cost method.
151151 12 A change in an actuarial or investment assumption that
152152 13 increases or decreases the required State contribution and
153153 14 first applies in State fiscal year 2018 or thereafter shall be
154154 15 implemented in equal annual amounts over a 5-year period
155155 16 beginning in the State fiscal year in which the actuarial
156156 17 change first applies to the required State contribution.
157157 18 A change in an actuarial or investment assumption that
158158 19 increases or decreases the required State contribution and
159159 20 first applied to the State contribution in fiscal year 2014,
160160 21 2015, 2016, or 2017 shall be implemented:
161161 22 (i) as already applied in State fiscal years before
162162 23 2018; and
163163 24 (ii) in the portion of the 5-year period beginning in
164164 25 the State fiscal year in which the actuarial change first
165165 26 applied that occurs in State fiscal year 2018 or
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176176 1 thereafter, by calculating the change in equal annual
177177 2 amounts over that 5-year period and then implementing it
178178 3 at the resulting annual rate in each of the remaining
179179 4 fiscal years in that 5-year period.
180180 5 For State fiscal years 1996 through 2005, the State
181181 6 contribution to the System, as a percentage of the applicable
182182 7 employee payroll, shall be increased in equal annual
183183 8 increments so that by State fiscal year 2011, the State is
184184 9 contributing at the rate required under this Section; except
185185 10 that (i) for State fiscal year 1998, for all purposes of this
186186 11 Code and any other law of this State, the certified percentage
187187 12 of the applicable employee payroll shall be 5.052% for
188188 13 employees earning eligible creditable service under Section
189189 14 14-110 and 6.500% for all other employees, notwithstanding any
190190 15 contrary certification made under Section 14-135.08 before
191191 16 July 7, 1997 (the effective date of Public Act 90-65), and (ii)
192192 17 in the following specified State fiscal years, the State
193193 18 contribution to the System shall not be less than the
194194 19 following indicated percentages of the applicable employee
195195 20 payroll, even if the indicated percentage will produce a State
196196 21 contribution in excess of the amount otherwise required under
197197 22 this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
198198 23 FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
199199 24 and 10.8% in FY 2004.
200200 25 Beginning in State fiscal year 2046, the minimum State
201201 26 contribution for each fiscal year shall be the amount needed
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212212 1 to maintain the total assets of the System at 90% of the total
213213 2 actuarial liabilities of the System.
214214 3 Amounts received by the System pursuant to Section 25 of
215215 4 the Budget Stabilization Act or Section 8.12 of the State
216216 5 Finance Act in any fiscal year do not reduce and do not
217217 6 constitute payment of any portion of the minimum State
218218 7 contribution required under this Article in that fiscal year.
219219 8 Such amounts shall not reduce, and shall not be included in the
220220 9 calculation of, the required State contributions under this
221221 10 Article in any future year until the System has reached a
222222 11 funding ratio of at least 90%. A reference in this Article to
223223 12 the "required State contribution" or any substantially similar
224224 13 term does not include or apply to any amounts payable to the
225225 14 System under Section 25 of the Budget Stabilization Act.
226226 15 Notwithstanding any other provision of this Section, the
227227 16 required State contribution for State fiscal year 2005 and for
228228 17 fiscal year 2008 and each fiscal year thereafter, as
229229 18 calculated under this Section and certified under Section
230230 19 14-135.08, shall not exceed an amount equal to (i) the amount
231231 20 of the required State contribution that would have been
232232 21 calculated under this Section for that fiscal year if the
233233 22 System had not received any payments under subsection (d) of
234234 23 Section 7.2 of the General Obligation Bond Act, minus (ii) the
235235 24 portion of the State's total debt service payments for that
236236 25 fiscal year on the bonds issued in fiscal year 2003 for the
237237 26 purposes of that Section 7.2, as determined and certified by
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248248 1 the Comptroller, that is the same as the System's portion of
249249 2 the total moneys distributed under subsection (d) of Section
250250 3 7.2 of the General Obligation Bond Act.
251251 4 (f) (Blank).
252252 5 (g) For purposes of determining the required State
253253 6 contribution to the System, the value of the System's assets
254254 7 shall be equal to the actuarial value of the System's assets,
255255 8 which shall be calculated as follows:
256256 9 As of June 30, 2008, the actuarial value of the System's
257257 10 assets shall be equal to the market value of the assets as of
258258 11 that date. In determining the actuarial value of the System's
259259 12 assets for fiscal years after June 30, 2008, any actuarial
260260 13 gains or losses from investment return incurred in a fiscal
261261 14 year shall be recognized in equal annual amounts over the
262262 15 5-year period following that fiscal year.
263263 16 (h) For purposes of determining the required State
264264 17 contribution to the System for a particular year, the
265265 18 actuarial value of assets shall be assumed to earn a rate of
266266 19 return equal to the System's actuarially assumed rate of
267267 20 return.
268268 21 (i) (Blank).
269269 22 (j) (Blank).
270270 23 (k) For fiscal year 2012 and each fiscal year thereafter,
271271 24 after the submission of all payments for eligible employees
272272 25 from personal services line items paid from the General
273273 26 Revenue Fund in the fiscal year have been made, the
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284284 1 Comptroller shall provide to the System a certification of the
285285 2 sum of all expenditures in the fiscal year for personal
286286 3 services. Upon receipt of the certification, the System shall
287287 4 determine the amount due to the System based on the full rate
288288 5 certified by the Board under Section 14-135.08 for the fiscal
289289 6 year in order to meet the State's obligation under this
290290 7 Section. The System shall compare this amount due to the
291291 8 amount received by the System for the fiscal year. If the
292292 9 amount due is more than the amount received, the difference
293293 10 shall be termed the "Prior Fiscal Year Shortfall" for purposes
294294 11 of this Section, and the Prior Fiscal Year Shortfall shall be
295295 12 satisfied under Section 1.2 of the State Pension Funds
296296 13 Continuing Appropriation Act. If the amount due is less than
297297 14 the amount received, the difference shall be termed the "Prior
298298 15 Fiscal Year Overpayment" for purposes of this Section, and the
299299 16 Prior Fiscal Year Overpayment shall be repaid by the System to
300300 17 the General Revenue Fund as soon as practicable after the
301301 18 certification.
302302 19 (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
303303 20 101-10, eff. 6-5-19.)
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