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Illinois Senate Bill SB2435

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2435 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2435 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new Amends the Cook County Article of the Illinois Pension Code. Provides that beginning in levy year 2024, the County shall levy a tax annually at a rate on the dollar of the value, as equalized or assessed by the Department of Revenue of all taxable property within the County that will produce, when extended, an amount equal to no less than the amount of the County's total required contribution to the Fund for the next payment year. Provides that for payment years 2025 through 2055, the County's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the projected normal cost for pensions for that fiscal year, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, minus (v) projected employee contributions for that fiscal year. Specifies a formula for payment years after 2055. Provides that, in lieu of levying all or a portion of the tax required, the County may deposit with the County treasurer for the benefit of the Fund an amount that, together with the taxes levied for that year, is not less than the amount of the County contributions for that year as certified by the Board of Trustees of the Fund to the County board. Provides that the County may continue to use other lawfully available funds to make the contribution in lieu of all or part of the levy. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. LRB103 06031 RPS 51061 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2435 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new Amends the Cook County Article of the Illinois Pension Code. Provides that beginning in levy year 2024, the County shall levy a tax annually at a rate on the dollar of the value, as equalized or assessed by the Department of Revenue of all taxable property within the County that will produce, when extended, an amount equal to no less than the amount of the County's total required contribution to the Fund for the next payment year. Provides that for payment years 2025 through 2055, the County's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the projected normal cost for pensions for that fiscal year, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, minus (v) projected employee contributions for that fiscal year. Specifies a formula for payment years after 2055. Provides that, in lieu of levying all or a portion of the tax required, the County may deposit with the County treasurer for the benefit of the Fund an amount that, together with the taxes levied for that year, is not less than the amount of the County contributions for that year as certified by the Board of Trustees of the Fund to the County board. Provides that the County may continue to use other lawfully available funds to make the contribution in lieu of all or part of the levy. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State. LRB103 06031 RPS 51061 b LRB103 06031 RPS 51061 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2435 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new
44 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169
55 30 ILCS 805/8.47 new
66 Amends the Cook County Article of the Illinois Pension Code. Provides that beginning in levy year 2024, the County shall levy a tax annually at a rate on the dollar of the value, as equalized or assessed by the Department of Revenue of all taxable property within the County that will produce, when extended, an amount equal to no less than the amount of the County's total required contribution to the Fund for the next payment year. Provides that for payment years 2025 through 2055, the County's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the projected normal cost for pensions for that fiscal year, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, minus (v) projected employee contributions for that fiscal year. Specifies a formula for payment years after 2055. Provides that, in lieu of levying all or a portion of the tax required, the County may deposit with the County treasurer for the benefit of the Fund an amount that, together with the taxes levied for that year, is not less than the amount of the County contributions for that year as certified by the Board of Trustees of the Fund to the County board. Provides that the County may continue to use other lawfully available funds to make the contribution in lieu of all or part of the levy. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State.
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1414 1 AN ACT concerning public employee benefits.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 5. The Illinois Pension Code is amended by
1818 5 changing Section 9-169 as follows:
1919 6 (40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
2020 7 Sec. 9-169. Financing; tax Financing - Tax levy.
2121 8 (a) The county board shall levy a tax annually upon all
2222 9 taxable property in the county at the rate that will produce a
2323 10 sum which, when added to the amounts deducted from the
2424 11 salaries of the employees or otherwise contributed by them is
2525 12 sufficient for the requirements of this Article.
2626 13 For the years before 1962 the tax rate shall be as provided
2727 14 in "The 1925 Act". For the years 1962 and 1963 the tax rate
2828 15 shall be not more than .0200 per cent; for the years 1964 and
2929 16 1965 the tax rate shall be not more than .0202 per cent; for
3030 17 the years 1966 and 1967 the tax rate shall be not more than
3131 18 .0207 per cent; for the year 1968 the tax rate shall be not
3232 19 more than .0220 per cent; for the year 1969 the tax rate shall
3333 20 be not more than .0233 per cent; for the year 1970 the tax rate
3434 21 shall be not more than .0255 per cent; for the year 1971 the
3535 22 tax rate shall be not more than .0268 per cent of the value, as
3636 23 equalized or assessed by the Department of Revenue upon all
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4040 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2435 Introduced 2/10/2023, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
4141 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169 30 ILCS 805/8.47 new
4242 40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169
4343 30 ILCS 805/8.47 new
4444 Amends the Cook County Article of the Illinois Pension Code. Provides that beginning in levy year 2024, the County shall levy a tax annually at a rate on the dollar of the value, as equalized or assessed by the Department of Revenue of all taxable property within the County that will produce, when extended, an amount equal to no less than the amount of the County's total required contribution to the Fund for the next payment year. Provides that for payment years 2025 through 2055, the County's required annual contributions to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the projected normal cost for pensions for that fiscal year, plus (ii) a projected unfunded actuarial accrued liability amortization payment for pensions for the fiscal year, plus (iii) projected expenses for that fiscal year, plus (iv) interest to adjust for payment pattern during the fiscal year, minus (v) projected employee contributions for that fiscal year. Specifies a formula for payment years after 2055. Provides that, in lieu of levying all or a portion of the tax required, the County may deposit with the County treasurer for the benefit of the Fund an amount that, together with the taxes levied for that year, is not less than the amount of the County contributions for that year as certified by the Board of Trustees of the Fund to the County board. Provides that the County may continue to use other lawfully available funds to make the contribution in lieu of all or part of the levy. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement by the State.
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4747 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
4848 STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
4949 A BILL FOR
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7979 1 taxable property in the county. Beginning with the year 1972
8080 2 and for each year thereafter the county shall levy a tax
8181 3 annually at a rate on the dollar of the value, as equalized or
8282 4 assessed by the Department of Revenue of all taxable property
8383 5 within the county that will produce, when extended, not to
8484 6 exceed an amount equal to the total amount of contributions
8585 7 made by the employees to the fund in the calendar year 2 years
8686 8 prior to the year for which the annual applicable tax is levied
8787 9 multiplied by .8 for the years 1972 through 1976; by .8 for the
8888 10 year 1977; by .87 for the year 1978; by .94 for the year 1979;
8989 11 by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
9090 12 1.18 for the year 1982 and by 1.36 for the year 1983 and by
9191 13 1.54 for the year 1984 and for each year thereafter through
9292 14 levy year 2023. Beginning in levy year 2024, and in each year
9393 15 thereafter, the county shall levy a tax annually at a rate on
9494 16 the dollar of the value, as equalized or assessed by the
9595 17 Department of Revenue of all taxable property within the
9696 18 county that will produce, when extended, an amount equal to no
9797 19 less than the amount of the county's total required
9898 20 contribution to the Fund for the next payment year, as
9999 21 determined under subsection (a-5). For the purposes of this
100100 22 Section, the payment year is the year immediately following
101101 23 the levy year.
102102 24 This tax shall be levied and collected in like manner with
103103 25 the general taxes of the county, and shall be in addition to
104104 26 all other taxes which the county is authorized to levy upon the
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115115 1 aggregate valuation of all taxable property within the county
116116 2 and shall be exclusive of and in addition to the amount of tax
117117 3 the county is authorized to levy for general purposes under
118118 4 any laws which may limit the amount of tax which the county may
119119 5 levy for general purposes. The county clerk, in reducing tax
120120 6 levies under any Act concerning the levy and extension of
121121 7 taxes, shall not consider this tax as a part of the general tax
122122 8 levy for county purposes, and shall not include it within any
123123 9 limitation of the per cent of the assessed valuation upon
124124 10 which taxes are required to be extended for the county. It is
125125 11 lawful to extend this tax in addition to the general county
126126 12 rate fixed by statute, without being authorized as additional
127127 13 by a vote of the people of the county.
128128 14 Revenues derived from this tax shall be paid to the
129129 15 treasurer of the county and held by the treasurer of the county
130130 16 him for the benefit of the fund.
131131 17 If the payments on account of taxes are insufficient
132132 18 during any year to meet the requirements of this Article, the
133133 19 county may issue tax anticipation warrants against the current
134134 20 tax levy.
135135 21 The county may continue to use other lawfully available
136136 22 funds in lieu of all or part of the levy, as provided under
137137 23 subsection (f).
138138 24 (a-5)(1) Beginning in payment year 2025 through 2055, the
139139 25 county's required annual contribution to the Fund shall be the
140140 26 minimum required employer contribution set forth in paragraph
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151151 1 (3) of this subsection (a-5).
152152 2 (2) The Board shall retain an actuary who is a member in
153153 3 good standing of the American Academy of Actuaries to produce
154154 4 an annual actuarial report of the Fund. The annual actuarial
155155 5 report shall include, but not be limited to: (i) a statement of
156156 6 the actuarial value of the Fund's assets as projected over 30
157157 7 years' time and the actuarial value of the Fund's liabilities
158158 8 as projected over the same period of time; and (ii) the minimum
159159 9 required employer contribution for the second year immediately
160160 10 following the year ending on the valuation date upon which the
161161 11 annual actuarial report is based. The annual actuarial report
162162 12 shall be reviewed and formally adopted by the Board and may be
163163 13 included in other annual reports.
164164 14 (3) The minimum required employer contribution for a
165165 15 specified year as set forth in the annual actuarial report
166166 16 required under paragraph (2) shall be the amount determined by
167167 17 the Fund's actuary to be equal to the sum of: (i) the projected
168168 18 normal cost for pensions for that fiscal year, plus (ii) a
169169 19 projected unfunded actuarial accrued liability amortization
170170 20 payment for pensions for the fiscal year, plus (iii) projected
171171 21 expenses for that fiscal year, plus (iv) interest to adjust
172172 22 for payment pattern during the fiscal year, minus (v)
173173 23 projected employee contributions for that fiscal year. The
174174 24 county's required annual contribution to the Fund shall not be
175175 25 less than the sum of (i) the projected normal cost for pensions
176176 26 for that fiscal year, plus (ii) a projected unfunded actuarial
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187187 1 accrued liability amortization payment for pensions for the
188188 2 fiscal year, plus (iii) projected expenses for that fiscal
189189 3 year, plus (iv) interest to adjust for payment pattern during
190190 4 the fiscal year, minus (v) projected employee contributions
191191 5 for that fiscal year. The minimum required employer
192192 6 contribution shall be based on the entry age normal cost
193193 7 method, a 5-year smoothed actuarial value of assets, and a
194194 8 30-year layered amortization of unfunded actuarial accrued
195195 9 liability with payments increasing at 2% per year.
196196 10 The minimum required employer contribution shall be
197197 11 submitted annually to the county on or before July 31 unless
198198 12 another time frame is agreed upon by the county and the Fund.
199199 13 (4) For payment years after 2055, the county's required
200200 14 annual contribution to the Fund shall be equal to the amount,
201201 15 if any, needed to bring the total actuarial assets of the Fund
202202 16 up to 100% of the total actuarial liabilities of the Fund by
203203 17 the end of the year.
204204 18 (5) To the extent that the county's contribution for any
205205 19 of the payment years referenced in this subsection is made
206206 20 with property taxes, those property taxes shall be levied,
207207 21 collected, and paid to the Fund in a like manner with the
208208 22 general taxes of the county.
209209 23 (b) By January 10, annually, the board shall notify the
210210 24 county board of the requirement of this Article that this tax
211211 25 shall be levied. The board shall make an annual determination
212212 26 of the required county contributions, and shall certify the
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223223 1 results thereof to the county board.
224224 2 (c) (Blank). The various sums to be contributed by the
225225 3 county board and allocated for the purposes of this Article
226226 4 and any interest to be contributed by the county shall be taken
227227 5 from the revenue derived from this tax and no money of the
228228 6 county derived from any source other than the levy and
229229 7 collection of this tax or the sale of tax anticipation
230230 8 warrants, except state or federal funds contributed for
231231 9 annuity and benefit purposes for employees of a county
232232 10 department of public aid under "The Illinois Public Aid Code",
233233 11 approved April 11, 1967, as now or hereafter amended, may be
234234 12 used to provide revenue for the fund.
235235 13 If it is not possible or practicable for the county to make
236236 14 contributions for age and service annuity and widow's annuity
237237 15 concurrently with the employee contributions made for such
238238 16 purposes, such county shall make such contributions as soon as
239239 17 possible and practicable thereafter with interest thereon at
240240 18 the effective rate until the time it shall be made.
241241 19 (d) With respect to employees whose wages are funded as
242242 20 participants under the Comprehensive Employment and Training
243243 21 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
244244 22 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
245245 23 subsequent to October 1, 1978, and in instances where the
246246 24 board has elected to establish a manpower program reserve, the
247247 25 board shall compute the amounts necessary to be credited to
248248 26 the manpower program reserves established and maintained as
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259259 1 herein provided, and shall make a periodic determination of
260260 2 the amount of required contributions from the County to the
261261 3 reserve to be reimbursed by the federal government in
262262 4 accordance with rules and regulations established by the
263263 5 Secretary of the United States Department of Labor or his
264264 6 designee, and certify the results thereof to the County Board.
265265 7 Any such amounts shall become a credit to the County and will
266266 8 be used to reduce the amount which the County would otherwise
267267 9 contribute during succeeding years for all employees.
268268 10 (e) In lieu of establishing a manpower program reserve
269269 11 with respect to employees whose wages are funded as
270270 12 participants under the Comprehensive Employment and Training
271271 13 Act of 1973, as authorized by subsection (d), the board may
272272 14 elect to establish a special County contribution rate for all
273273 15 such employees. If this option is elected, the County shall
274274 16 contribute to the Fund from federal funds provided under the
275275 17 Comprehensive Employment and Training Act program at the
276276 18 special rate so established and such contributions shall
277277 19 become a credit to the County and be used to reduce the amount
278278 20 which the County would otherwise contribute during succeeding
279279 21 years for all employees.
280280 22 (f) In lieu of levying all or a portion of the tax required
281281 23 under this Section in any year, the county may deposit with the
282282 24 county treasurer for the benefit of the Fund, to be held in
283283 25 accordance with this Article, an amount that, together with
284284 26 the taxes levied under this Section for that year, is not less
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295295 1 than the amount of the County's contributions for that year as
296296 2 certified by the Board to the county Board. The deposit may be
297297 3 derived from any source legally available for that purpose,
298298 4 including, but not limited to, the proceeds of county
299299 5 borrowings. The making of a deposit shall satisfy fully the
300300 6 requirements of this Section for that year to the extent of the
301301 7 amounts so deposited; however, such action does not relieve
302302 8 the county from fulfilling its obligations of the required
303303 9 annual contribution to the Fund pursuant to subsection (a-5).
304304 10 Amounts deposited under this subsection may be used by the
305305 11 Fund for any of the purposes for which the proceeds of the tax
306306 12 levied by the county under this Section may be used, including
307307 13 the payment of any amount that is otherwise required by this
308308 14 Article to be paid from the proceeds of that tax.
309309 15 (Source: P.A. 95-369, eff. 8-23-07.)
310310 16 Section 90. The State Mandates Act is amended by adding
311311 17 Section 8.47 as follows:
312312 18 (30 ILCS 805/8.47 new)
313313 19 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
314314 20 8 of this Act, no reimbursement by the State is required for
315315 21 the implementation of any mandate created by this amendatory
316316 22 Act of the 103rd General Assembly.
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