Bill Amendment: IL HB3178 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: STATE ACTUARY FULL-SCOPE AUDIT

Status: 2015-05-06 - Added Chief Co-Sponsor Rep. Carol Sente [HB3178 Detail]

Download: Illinois-2015-HB3178-House_Amendment_001.html

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Rep. Elaine Nekritz

Filed: 3/23/2015

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AMENDMENT TO HOUSE BILL 3178
AMENDMENT NO. ______. Amend House Bill 3178 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois State Auditing Act is amended by
changing Section 2-8.1 as follows:
(30 ILCS 5/2-8.1)
Sec. 2-8.1. Actuarial Responsibilities.
(a) The Auditor General shall contract with or hire an
actuary to serve as the State Actuary. The State Actuary shall
be retained by, serve at the pleasure of, and be under the
supervision of the Auditor General and shall be paid from
appropriations to the office of the Auditor General. The State
Actuary may be selected by the Auditor General without engaging
in a competitive procurement process.
(b) The State Actuary shall:
(1) review assumptions and valuations prepared by

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actuaries retained by the boards of trustees of the
State-funded retirement systems;
(2) issue preliminary reports to the boards of trustees
of the State-funded retirement systems concerning proposed
certifications of required State contributions submitted
to the State Actuary by those boards;
(3) cooperate with the boards of trustees of the
State-funded retirement systems to identify recommended
changes in actuarial assumptions that the boards must
consider before finalizing their certifications of the
required State contributions;
(4) conduct reviews of the actuarial practices of the
boards of trustees of the State-funded retirement systems;
(5) make additional reports as directed by joint
resolution of the General Assembly; and
(6) perform any other duties assigned by the Auditor
General, including, but not limited to, reviews of the
actuarial practices of other entities.
(c) On or before January 1, 2013 and each January 1
thereafter, the Auditor General shall submit a written report
to the General Assembly and Governor documenting the initial
assumptions and valuations prepared by actuaries retained by
the boards of trustees of the State-funded retirement systems,
any changes recommended by the State Actuary in the actuarial
assumptions, and the responses of each board to the State
Actuary's recommendations.

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(d) For the purposes of this Section, "State-funded
retirement system" means a retirement system established
pursuant to Article 2, 14, 15, 16, or 18 of the Illinois
Pension Code.
(e) Every 5 years, the State Actuary shall fully replicate
the actuarial valuation used to report the financial condition
of each of the 5 State-funded retirement systems, based on the
same census data, assumptions, and actuarial methods used in
the actuarial valuation. The full-scope actuarial audit shall
include an examination of methods and assumptions used for the
actuarial valuation for reasonableness and internal
consistency. The cost of the full-scope actuarial audit shall
be paid by the retirement system as an administrative expense.
The full-scope actuarial audits required under this
subsection (e) shall begin with:
(1) State fiscal year 2016 for the retirement system
established under Article 2 of the Illinois Pension Code;
(2) State fiscal year 2017 for the retirement system
established under Article 14 of the Illinois Pension Code;
(3) State fiscal year 2018 for the retirement system
established under Article 15 of the Illinois Pension Code;
(4) State fiscal year 2019 for the retirement system
established under Article 16 of the Illinois Pension Code;
and
(5) State fiscal year 2020 for the retirement system
established under Article 18 of the Illinois Pension Code.

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(Source: P.A. 97-694, eff. 6-18-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.".