Bill Text: IL SB3421 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. In the Cook County and Cook County Forest Preserve Articles, increases the multiplier used to calculate the maximum tax levy for the years 2014 through 2020. Beginning in 2021, provides for an annual tax levy based on (1) the employer's normal cost of the pension fund, plus (2) the annual amount necessary to amortize the fund's unfunded accrued liabilities over a period of 30 years from the effective date of the evaluation. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3421 Detail]

Download: Illinois-2011-SB3421-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB3421 Introduced 2/7/2012, by Sen. Mike Jacobs SYNOPSIS AS INTRODUCED:
40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169
40 ILCS 5/10-107 from Ch. 108 1/2, par. 10-107
30 ILCS 805/8.36 new
Amends the Illinois Pension Code. In the Cook County and Cook County Forest Preserve Articles, increases the multiplier used to calculate the maximum tax levy for the years 2014 through 2020. Beginning in 2021, provides for an annual tax levy based on (1) the employer's normal cost of the pension fund, plus (2) the annual amount necessary to amortize the fund's unfunded accrued liabilities over a period of 30 years from the effective date of the evaluation. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB097 19616 EFG 64870 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
SB3421 LRB097 19616 EFG 64870 b
AN ACT concerning 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
Sections 9-169 and 10-107 as follows:
(40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
Sec. 9-169. Financing - Tax levy.
(a) The county board shall levy a tax annually upon all
taxable property in the county at the rate that will produce a
sum which, when added to the amounts deducted from the salaries
of the employees or otherwise contributed by them is sufficient
for the requirements of this Article.
For the years before 1962 the tax rate shall be as provided
in "The 1925 Act". For the years 1962 and 1963 the tax rate
shall be not more than .0200 per cent; for the years 1964 and
1965 the tax rate shall be not more than .0202 per cent; for
the years 1966 and 1967 the tax rate shall be not more than
.0207 per cent; for the year 1968 the tax rate shall be not
more than .0220 per cent; for the year 1969 the tax rate shall
be not more than .0233 per cent; for the year 1970 the tax rate
shall be not more than .0255 per cent; for the year 1971 the
tax rate shall be not more than .0268 per cent of the value, as
equalized or assessed by the Department of Revenue upon all

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taxable property in the county.
Beginning with the year 1972 and for each year thereafter
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, not to exceed an amount equal to the
total amount of contributions made by the employees to the fund
in the calendar year 2 years prior to the year for which the
annual applicable tax is levied multiplied by .8 for the years
1972 through 1976; by .8 for the year 1977; by .87 for the year
1978; by .94 for the year 1979; by 1.02 for the year 1980; and
by 1.10 for the year 1981; and by 1.18 for the year 1982; and by
1.36 for the year 1983; and by 1.54 for the years year 1984
through 2013; by 2.25 for the years 2014 through 2016; and by
3.00 for the years 2017 through 2020 and for each year
thereafter.
Beginning in the year 2021 and for each year thereafter,
the county shall levy a tax annually upon all taxable property
within the county at a rate that will produce a sum that, when
added to the amounts deducted from the salaries of the
employees or otherwise contributed by them and revenues from
other sources, will equal a sum sufficient to meet the annual
actuarial requirements of the pension fund as determined by a
qualified actuary retained by the pension fund. For the
purposes of this Section, the annual actuarial requirements of
the pension fund are equal to (1) the employer's normal cost of

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the pension fund, plus (2) the annual amount necessary to
amortize the fund's unfunded accrued liabilities over a period
of 30 years from the effective date of the evaluation.
This tax shall be levied and collected in like manner with
the general taxes of the county, and shall be in addition to
all other taxes which the county is authorized to levy upon the
aggregate valuation of all taxable property within the county
and shall be exclusive of and in addition to the amount of tax
the county is authorized to levy for general purposes under any
laws which may limit the amount of tax which the county may
levy for general purposes. The county clerk, in reducing tax
levies under any Act concerning the levy and extension of
taxes, shall not consider this tax as a part of the general tax
levy for county purposes, and shall not include it within any
limitation of the per cent of the assessed valuation upon which
taxes are required to be extended for the county. It is lawful
to extend this tax in addition to the general county rate fixed
by statute, without being authorized as additional by a vote of
the people of the county.
Revenues derived from this tax shall be paid to the
treasurer of the county and held by him for the benefit of the
fund.
If the payments on account of taxes are insufficient during
any year to meet the requirements of this Article, the county
may issue tax anticipation warrants against the current tax
levy.

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(b) By January 10, annually, the board shall notify the
county board of the requirement of this Article that this tax
shall be levied. The board shall make an annual determination
of the required county contributions, and shall certify the
results thereof to the county board.
(c) The various sums to be contributed by the county board
and allocated for the purposes of this Article and any interest
to be contributed by the county shall be taken from the revenue
derived from this tax and no money of the county derived from
any source other than the levy and collection of this tax or
the sale of tax anticipation warrants, except state or federal
funds contributed for annuity and benefit purposes for
employees of a county department of public aid under "The
Illinois Public Aid Code", approved April 11, 1967, as now or
hereafter amended, may be used to provide revenue for the fund.
If it is not possible or practicable for the county to make
contributions for age and service annuity and widow's annuity
concurrently with the employee contributions made for such
purposes, such county shall make such contributions as soon as
possible and practicable thereafter with interest thereon at
the effective rate until the time it shall be made.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the board

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has elected to establish a manpower program reserve, the board
shall compute the amounts necessary to be credited to the
manpower program reserves established and maintained as herein
provided, and shall make a periodic determination of the amount
of required contributions from the County to the reserve to be
reimbursed by the federal government in accordance with rules
and regulations established by the Secretary of the United
States Department of Labor or his designee, and certify the
results thereof to the County Board. Any such amounts shall
become a credit to the County and will be used to reduce the
amount which the County would otherwise contribute during
succeeding years for all employees.
(e) In lieu of establishing a manpower program reserve with
respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as
authorized by subsection (d), the board may elect to establish
a special County contribution rate for all such employees. If
this option is elected, the County shall contribute to the Fund
from federal funds provided under the Comprehensive Employment
and Training Act program at the special rate so established and
such contributions shall become a credit to the County and be
used to reduce the amount which the County would otherwise
contribute during succeeding years for all employees.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/10-107) (from Ch. 108 1/2, par. 10-107)

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Sec. 10-107. Financing - Tax levy. The forest preserve
district may levy an annual tax on the value, as equalized or
assessed by the Department of Revenue, of all taxable property
in the district for the purpose of providing revenue for the
fund. The rate of such tax in any year may not exceed the rate
herein specified for that year or the rate which will produce,
when extended, the sum herein stated for that year, whichever
is higher: for any year prior to 1970, .00103% or $195,000; for
the year 1970, .00111% or $210,000; for the year 1971, .00116%
or $220,000.
For the year 1972 and each year thereafter, the Forest
Preserve District shall levy a tax annually at a rate on the
dollar of the value, as equalized or assessed by the Department
of Revenue upon all taxable property in the county, when
extended, not to exceed an amount equal to the total amount of
contributions by the employees to the fund made in the calendar
year 2 years prior to the year for which the annual applicable
tax is levied, multiplied by 1.25 for the year 1972; and by
1.30 for the years year 1973 through 2013; by 2.25 for the
years 2014 through 2016; and by 3.00 for the years 2017 through
2020 and for each year thereafter.
Beginning in the year 2021 and for each year thereafter,
the forest preserve district shall levy a tax annually upon all
taxable property within the district at a rate that will
produce a sum that, when added to the amounts deducted from the
salaries of the employees or otherwise contributed by them, and

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revenues from other sources, will equal a sum sufficient to
meet the annual actuarial requirements of the pension fund as
determined by a qualified actuary retained by the pension fund.
For the purposes of this Section, the annual actuarial
requirements of the pension fund are equal to (1) the
employer's normal cost of the pension fund, plus (2) the annual
amount necessary to amortize the fund's unfunded accrued
liabilities over a period of 30 years from the effective date
of the evaluation.
The tax shall be levied and collected in like manner with
the general taxes of the district and shall be in addition to
the maximum of all other tax rates which the district may levy
upon the aggregate valuation of all taxable property and shall
be exclusive of and in addition to the maximum amount and rate
of taxes the district may levy for general purposes or under
and by virtue of any laws which limit the amount of tax which
the district may levy for general purposes. The county clerk of
the county in which the forest preserve district is located in
reducing tax levies under the provisions of "An Act concerning
the levy and extension of taxes", approved May 9, 1901, as
amended, shall not consider any such tax as a part of the
general tax levy for forest preserve purposes, and shall not
include the same in the limitation of 1% of the assessed
valuation upon which taxes are required to be extended, and
shall not reduce the same under the provisions of that Act. The
proceeds of the tax herein authorized shall be kept as a

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separate fund.
The Board may establish a manpower program reserve, or a
special forest preserve district contribution rate, with
respect to employees whose wages are funded as program
participants under the Comprehensive Employment and Training
Act of 1973 in the manner provided in subsection (d) or (e),
respectively, of Section 9-169.
(Source: P.A. 81-1509.)
Section 90. The State Mandates Act is amended by adding
Section 8.36 as follows:
(30 ILCS 805/8.36 new)
Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.