Bill Text: IL HB0560 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Chicago Police Article of the Illinois Pension Code to increase the multiplier used to calculate the maximum allowable pension tax, from 2.00 to 2.26. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2009-03-25 - Added Co-Sponsor Rep. Michael J. Zalewski [HB0560 Detail]

Download: Illinois-2009-HB0560-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0560 Introduced 2/4/2009, by Rep. Kevin Joyce SYNOPSIS AS INTRODUCED:
40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168
Amends the Chicago Police Article of the Illinois Pension Code to increase the multiplier used to calculate the maximum allowable pension tax, from 2.00 to 2.26. Effective immediately.
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HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 5-168 as follows:
(40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
Sec. 5-168. Financing.
(a) Except as expressly provided in this Section, the city
shall levy a tax annually upon all taxable property therein for
the purpose of providing revenue for the fund.
The tax shall be at a rate that will produce a sum which,
when added to the amounts deducted from the policemen's
salaries and the amounts deposited in accordance with
subsection (g), is sufficient for the purposes of the fund.
For the years 1968 and 1969, the city council shall levy a
tax annually at a rate on the dollar of the assessed valuation
of all taxable property that will produce, when extended, not
to exceed $9,700,000. Beginning with the year 1970 and each
year thereafter the city council shall levy a tax annually at a
rate on the dollar of the assessed valuation of all taxable
property that will produce when extended an amount not to
exceed the total amount of contributions by the policemen to
the Fund made in the calendar year 2 years before the year for

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which the applicable annual tax is levied, multiplied by 1.40
for the tax levy year 1970; by 1.50 for the year 1971; by 1.65
for 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
through 1981; by 2.00 for 1982 through 2009; and by 2.26 for
2010 and each year thereafter.
(b) The tax shall be levied and collected in like manner
with the general taxes of the city, and is in addition to all
other taxes which the city is now or may hereafter be
authorized to levy upon all taxable property therein, and is
exclusive of and in addition to the amount of tax the city is
now or may hereafter be authorized to levy for general purposes
under any law which may limit the amount of tax which the city
may levy for general purposes. The county clerk of the county
in which the city is located, in reducing tax levies under
Section 8-3-1 of the Illinois Municipal Code, shall not
consider the tax herein authorized as a part of the general tax
levy for city purposes, and shall not include the tax in any
limitation of the percent of the assessed valuation upon which
taxes are required to be extended for the city.
(c) On or before January 10 of each year, the board shall
notify the city council of the requirement that the tax herein
authorized be levied by the city council for that current year.
The board shall compute the amounts necessary for the purposes
of this fund to be credited to the reserves established and
maintained within the fund; shall make an annual determination
of the amount of the required city contributions; and shall

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certify the results thereof to the city council.
As soon as any revenue derived from the tax is collected it
shall be paid to the city treasurer of the city and shall be
held by him for the benefit of the fund in accordance with this
Article.
(d) If the funds available are insufficient during any year
to meet the requirements of this Article, the city may issue
tax anticipation warrants against the tax levy for the current
fiscal year.
(e) The various sums, including interest, to be contributed
by the city, shall be taken from the revenue derived from such
tax or otherwise as expressly provided in this Section. Any
moneys of the city derived from any source other than the tax
herein authorized shall not be used for any purpose of the fund
nor the cost of administration thereof, unless applied to make
the deposit expressly authorized in this Section or the
additional city contributions required under subsection (h).
(f) If it is not possible or practicable for the city to
make its contributions at the time that salary deductions are
made, the city shall make such contributions as soon as
possible thereafter, with interest thereon to the time it is
made.
(g) In lieu of levying all or a portion of the tax required
under this Section in any year, the city may deposit with the
city treasurer no later than March 1 of that year for the
benefit of the fund, to be held in accordance with this

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Article, an amount that, together with the taxes levied under
this Section for that year, is not less than the amount of the
city contributions for that year as certified by the board to
the city council. The deposit may be derived from any source
legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit
shall satisfy fully the requirements of this Section for that
year to the extent of the amounts so deposited. Amounts
deposited under this subsection may be used by the fund for any
of the purposes for which the proceeds of the tax levied under
this Section may be used, including the payment of any amount
that is otherwise required by this Article to be paid from the
proceeds of that tax.
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the city
treasurer for the benefit of the fund, to be held and used in
accordance with this Article, the following specified amounts:
$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
$5,040,000 in 2002; and $4,620,000 in 2003.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful

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purposes.
(Source: P.A. 93-654, eff. 1-16-04.)
Section 99. Effective date. This Act takes effect upon