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

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Bill Title: Amends the Illinois State Auditing Act. Requires the State Actuary to conduct a full-scope audit of each of the 5 State-funded retirement systems at least once every 5 years. The audit must fully replicate the actuarial valuation used to report the financial condition of the system and shall include an examination of methods and assumptions used for the actuarial valuation for reasonableness and internal consistency. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

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

Download: Illinois-2015-HB3178-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3178 Introduced , by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED:
30 ILCS 5/2-8.1
Amends the Illinois State Actuary Act. Requires the State Actuary to conduct a full-scope audit of each of the 5 State-funded retirement systems at least once every 5 years. The audit must fully replicate the actuarial valuation used to report the financial condition of the system, and shall include an examination of methods and assumptions used for the actuarial valuation for reasonableness and internal consistency. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
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
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

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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.
(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.
(7) At least once every 5 years, the State Actuary
shall fully replicate the actuarial valuation used to
report the financial condition of each of the 5

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