Illinois Senate Bill SB2435

Illinois 2023-2024 Regular Session

• Introduced: 2/10/23
• Refer: 2/10/23

Caption

PEN CD-COOK COUNTY-FUNDING

Impact

The implications of SB2435 are significant for local governance and fiscal policy. For the payment years 2025 through 2055, the required contributions will include projected normal costs, unfunded actuarial accrued liabilities, and other pension-related expenses, solidifying the County's financial obligations. The bill also allows for the possible use of other available funds to fulfill these contributions, broadening the sources from which the County can draw to meet its pension commitments.

Summary

SB2435, introduced by Senator Robert F. Martwick, amends the Cook County Article of the Illinois Pension Code. The bill mandates that starting in levy year 2024, Cook County must levy a property tax sufficient to ensure that the County's total required contribution to the pension fund for the following year is met. This requirement aims to provide a more stable and predictable funding mechanism for the pension fund, addressing concerns over previous contributions that were inconsistent or inadequate.

Contention

Notably, the bill amends the State Mandates Act to specify that implementation does not require state reimbursement, raising concerns about financial impacts on the County's budget. Critics argue that this could lead to restrictions in other areas of public spending, as funds are redirected to meet pension requirements. Proponents, however, contend that the bill is a crucial step in securing the financial health of public employee pensions in Cook County, ensuring benefits for current and future retirees.