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Illinois Senate Bill SB1451

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1451 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1451 Introduced 1/31/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124 Amends the General Assembly Article of the Illinois Pension Code. Provides that, in any fiscal year in which the total assets of the System are at least 90% of the total actuarial liabilities of the System, the minimum contribution by the State for that fiscal year shall be the System's normal cost for the fiscal year, plus a supplemental payment in any year in which the total assets of the System are less than 120% of the total actuarial liabilities. Provides that the supplemental payment is to be calculated by using a 30-year rolling amortization to target a ratio of the System's total assets to the System's total actuarial liabilities of 120%. Provides that, if the ratio of the System's total assets to the System's total actuarial liabilities is 120% or greater, but 130% or less, the State is only obligated to make a payment of the normal cost for the fiscal year. Provides that, in any fiscal year in which the ratio of the System's total assets to the System's total actuarial liabilities exceeds 130%, no payment, either for the normal cost or a supplemental payment, shall be paid to the System. Makes conforming changes. LRB104 08657 RPS 18711 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1451 Introduced 1/31/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124 Amends the General Assembly Article of the Illinois Pension Code. Provides that, in any fiscal year in which the total assets of the System are at least 90% of the total actuarial liabilities of the System, the minimum contribution by the State for that fiscal year shall be the System's normal cost for the fiscal year, plus a supplemental payment in any year in which the total assets of the System are less than 120% of the total actuarial liabilities. Provides that the supplemental payment is to be calculated by using a 30-year rolling amortization to target a ratio of the System's total assets to the System's total actuarial liabilities of 120%. Provides that, if the ratio of the System's total assets to the System's total actuarial liabilities is 120% or greater, but 130% or less, the State is only obligated to make a payment of the normal cost for the fiscal year. Provides that, in any fiscal year in which the ratio of the System's total assets to the System's total actuarial liabilities exceeds 130%, no payment, either for the normal cost or a supplemental payment, shall be paid to the System. Makes conforming changes. LRB104 08657 RPS 18711 b LRB104 08657 RPS 18711 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1451 Introduced 1/31/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
44 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
55 Amends the General Assembly Article of the Illinois Pension Code. Provides that, in any fiscal year in which the total assets of the System are at least 90% of the total actuarial liabilities of the System, the minimum contribution by the State for that fiscal year shall be the System's normal cost for the fiscal year, plus a supplemental payment in any year in which the total assets of the System are less than 120% of the total actuarial liabilities. Provides that the supplemental payment is to be calculated by using a 30-year rolling amortization to target a ratio of the System's total assets to the System's total actuarial liabilities of 120%. Provides that, if the ratio of the System's total assets to the System's total actuarial liabilities is 120% or greater, but 130% or less, the State is only obligated to make a payment of the normal cost for the fiscal year. Provides that, in any fiscal year in which the ratio of the System's total assets to the System's total actuarial liabilities exceeds 130%, no payment, either for the normal cost or a supplemental payment, shall be paid to the System. Makes conforming changes.
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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 2-124 as follows:
1616 6 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
1717 7 Sec. 2-124. Contributions by State.
1818 8 (a) The State shall make contributions to the System by
1919 9 appropriations of amounts which, together with the
2020 10 contributions of participants, interest earned on investments,
2121 11 and other income will meet the cost of maintaining and
2222 12 administering the System on a 90% funded basis in accordance
2323 13 with actuarial recommendations.
2424 14 (b) The Board shall determine the amount of State
2525 15 contributions required for each fiscal year on the basis of
2626 16 the actuarial tables and other assumptions adopted by the
2727 17 Board and the prescribed rate of interest, using the formula
2828 18 in subsection (c).
2929 19 (c) For State fiscal years 2012 through 2045, except as
3030 20 otherwise provided in this Section, the minimum contribution
3131 21 to the System to be made by the State for each fiscal year
3232 22 shall be an amount determined by the System to be sufficient to
3333 23 bring the total assets of the System up to 90% of the total
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3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1451 Introduced 1/31/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3838 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
3939 40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
4040 Amends the General Assembly Article of the Illinois Pension Code. Provides that, in any fiscal year in which the total assets of the System are at least 90% of the total actuarial liabilities of the System, the minimum contribution by the State for that fiscal year shall be the System's normal cost for the fiscal year, plus a supplemental payment in any year in which the total assets of the System are less than 120% of the total actuarial liabilities. Provides that the supplemental payment is to be calculated by using a 30-year rolling amortization to target a ratio of the System's total assets to the System's total actuarial liabilities of 120%. Provides that, if the ratio of the System's total assets to the System's total actuarial liabilities is 120% or greater, but 130% or less, the State is only obligated to make a payment of the normal cost for the fiscal year. Provides that, in any fiscal year in which the ratio of the System's total assets to the System's total actuarial liabilities exceeds 130%, no payment, either for the normal cost or a supplemental payment, shall be paid to the System. Makes conforming changes.
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6868 1 actuarial liabilities of the System by the end of State fiscal
6969 2 year 2045. In making these determinations, the required State
7070 3 contribution shall be calculated each year as a level
7171 4 percentage of payroll over the years remaining to and
7272 5 including fiscal year 2045 and shall be determined under the
7373 6 projected unit credit actuarial cost method.
7474 7 In any fiscal year in which the total assets of the System
7575 8 are at least 90% of the total actuarial liabilities of the
7676 9 System, the minimum contribution by the State for that fiscal
7777 10 year shall be the System's normal cost for the fiscal year,
7878 11 plus a supplemental payment in any year in which the total
7979 12 assets of the System are less than 120% of the total actuarial
8080 13 liabilities.
8181 14 (i) The supplemental payment is to be calculated by
8282 15 using a 30-year rolling amortization to target a ratio of
8383 16 the System's total assets to the System's total actuarial
8484 17 liabilities of 120%.
8585 18 (ii) If the ratio of the System's total assets to the
8686 19 System's total actuarial liabilities is 120% or greater,
8787 20 but 130% or less, the State is only obligated to make a
8888 21 payment of the normal cost for the fiscal year.
8989 22 (iii) In any fiscal year in which the ratio of the
9090 23 System's total assets to the System's total actuarial
9191 24 liabilities exceeds 130%, no payment, either for the
9292 25 normal cost or a supplemental payment, shall to be paid to
9393 26 the System.
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104104 1 A change in an actuarial or investment assumption that
105105 2 increases or decreases the required State contribution and
106106 3 first applies in State fiscal year 2018 or thereafter shall be
107107 4 implemented in equal annual amounts over a 5-year period
108108 5 beginning in the State fiscal year in which the actuarial
109109 6 change first applies to the required State contribution.
110110 7 A change in an actuarial or investment assumption that
111111 8 increases or decreases the required State contribution and
112112 9 first applied to the State contribution in fiscal year 2014,
113113 10 2015, 2016, or 2017 shall be implemented:
114114 11 (i) as already applied in State fiscal years before
115115 12 2018; and
116116 13 (ii) in the portion of the 5-year period beginning in
117117 14 the State fiscal year in which the actuarial change first
118118 15 applied that occurs in State fiscal year 2018 or
119119 16 thereafter, by calculating the change in equal annual
120120 17 amounts over that 5-year period and then implementing it
121121 18 at the resulting annual rate in each of the remaining
122122 19 fiscal years in that 5-year period.
123123 20 For State fiscal years 1996 through 2005, the State
124124 21 contribution to the System, as a percentage of the applicable
125125 22 employee payroll, shall be increased in equal annual
126126 23 increments so that by State fiscal year 2011, the State is
127127 24 contributing at the rate required under this Section.
128128 25 Notwithstanding any other provision of this Article, the
129129 26 total required State contribution for State fiscal year 2006
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140140 1 is $4,157,000.
141141 2 Notwithstanding any other provision of this Article, the
142142 3 total required State contribution for State fiscal year 2007
143143 4 is $5,220,300.
144144 5 For each of State fiscal years 2008 through 2009, the
145145 6 State contribution to the System, as a percentage of the
146146 7 applicable employee payroll, shall be increased in equal
147147 8 annual increments from the required State contribution for
148148 9 State fiscal year 2007, so that by State fiscal year 2011, the
149149 10 State is contributing at the rate otherwise required under
150150 11 this Section.
151151 12 Notwithstanding any other provision of this Article, the
152152 13 total required State contribution for State fiscal year 2010
153153 14 is $10,454,000 and shall be made from the proceeds of bonds
154154 15 sold in fiscal year 2010 pursuant to Section 7.2 of the General
155155 16 Obligation Bond Act, less (i) the pro rata share of bond sale
156156 17 expenses determined by the System's share of total bond
157157 18 proceeds, (ii) any amounts received from the General Revenue
158158 19 Fund in fiscal year 2010, and (iii) any reduction in bond
159159 20 proceeds due to the issuance of discounted bonds, if
160160 21 applicable.
161161 22 Notwithstanding any other provision of this Article, the
162162 23 total required State contribution for State fiscal year 2011
163163 24 is the amount recertified by the System on or before April 1,
164164 25 2011 pursuant to Section 2-134 and shall be made from the
165165 26 proceeds of bonds sold in fiscal year 2011 pursuant to Section
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176176 1 7.2 of the General Obligation Bond Act, less (i) the pro rata
177177 2 share of bond sale expenses determined by the System's share
178178 3 of total bond proceeds, (ii) any amounts received from the
179179 4 General Revenue Fund in fiscal year 2011, and (iii) any
180180 5 reduction in bond proceeds due to the issuance of discounted
181181 6 bonds, if applicable.
182182 7 Beginning in State fiscal year 2046 and except as
183183 8 otherwise provided in this Section, the minimum State
184184 9 contribution for each fiscal year shall be the amount needed
185185 10 to maintain the total assets of the System at 90% of the total
186186 11 actuarial liabilities of the System.
187187 12 Amounts received by the System pursuant to Section 25 of
188188 13 the Budget Stabilization Act or Section 8.12 of the State
189189 14 Finance Act in any fiscal year do not reduce and do not
190190 15 constitute payment of any portion of the minimum State
191191 16 contribution required under this Article in that fiscal year.
192192 17 Such amounts shall not reduce, and shall not be included in the
193193 18 calculation of, the required State contributions under this
194194 19 Article in any future year until the System has reached a
195195 20 funding ratio of at least 90%. A reference in this Article to
196196 21 the "required State contribution" or any substantially similar
197197 22 term does not include or apply to any amounts payable to the
198198 23 System under Section 25 of the Budget Stabilization Act.
199199 24 Notwithstanding any other provision of this Section, the
200200 25 required State contribution for State fiscal year 2005 and for
201201 26 fiscal year 2008 and each fiscal year thereafter, as
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212212 1 calculated under this Section and certified under Section
213213 2 2-134, shall not exceed an amount equal to (i) the amount of
214214 3 the required State contribution that would have been
215215 4 calculated under this Section for that fiscal year if the
216216 5 System had not received any payments under subsection (d) of
217217 6 Section 7.2 of the General Obligation Bond Act, minus (ii) the
218218 7 portion of the State's total debt service payments for that
219219 8 fiscal year on the bonds issued in fiscal year 2003 for the
220220 9 purposes of that Section 7.2, as determined and certified by
221221 10 the Comptroller, that is the same as the System's portion of
222222 11 the total moneys distributed under subsection (d) of Section
223223 12 7.2 of the General Obligation Bond Act. In determining this
224224 13 maximum for State fiscal years 2008 through 2010, however, the
225225 14 amount referred to in item (i) shall be increased, as a
226226 15 percentage of the applicable employee payroll, in equal
227227 16 increments calculated from the sum of the required State
228228 17 contribution for State fiscal year 2007 plus the applicable
229229 18 portion of the State's total debt service payments for fiscal
230230 19 year 2007 on the bonds issued in fiscal year 2003 for the
231231 20 purposes of Section 7.2 of the General Obligation Bond Act, so
232232 21 that, by State fiscal year 2011, the State is contributing at
233233 22 the rate otherwise required under this Section.
234234 23 (d) For purposes of determining the required State
235235 24 contribution to the System, the value of the System's assets
236236 25 shall be equal to the actuarial value of the System's assets,
237237 26 which shall be calculated as follows:
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