Bill Amendment: IL SB1910 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PEN CD-ART 3&4-FINANCING
Status: 2021-01-13 - Session Sine Die [SB1910 Detail]
Download: Illinois-2019-SB1910-Senate_Amendment_001.html
Bill Title: PEN CD-ART 3&4-FINANCING
Status: 2021-01-13 - Session Sine Die [SB1910 Detail]
Download: Illinois-2019-SB1910-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 1910
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2 | AMENDMENT NO. ______. Amend Senate Bill 1910, by replacing | ||||||
3 | line 6 on page 2 through line 8 on page 3 with the following: | ||||||
4 | " For municipal fiscal years 2021 through 2025, the annual | ||||||
5 | requirements to be provided by such tax levy and the required | ||||||
6 | minimum contribution to the fund are equal to (1) the normal | ||||||
7 | cost of the pension fund for the year involved, plus (2) an | ||||||
8 | amount sufficient to bring the total assets of the pension fund | ||||||
9 | up to 100% of the total actuarial liabilities of the pension | ||||||
10 | fund over a 30-year rolling amortization period, as annually | ||||||
11 | updated and determined by an enrolled actuary employed by the | ||||||
12 | Department of Insurance or by an enrolled actuary retained by | ||||||
13 | the pension fund or the municipality. In making these | ||||||
14 | determinations, the required minimum employer contribution | ||||||
15 | shall be calculated each year as a level dollar amount over the | ||||||
16 | amortization period and shall be determined under the entry age | ||||||
17 | normal actuarial cost method, and shall be determined using the | ||||||
18 | most recent mortality tables available and investment |
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1 | assumptions recommended by an enrolled actuary employed by the | ||||||
2 | Department of Insurance or by an enrolled actuary retained by | ||||||
3 | the pension fund or the municipality. | ||||||
4 | For municipal fiscal years 2026 through 2035, the annual | ||||||
5 | requirements to be provided by such tax levy and the required | ||||||
6 | minimum contribution to the fund are equal to (1) the normal | ||||||
7 | cost of the pension fund for the year involved, plus (2) an | ||||||
8 | amount sufficient to bring the total assets of the pension fund | ||||||
9 | up to 100% of the total actuarial liabilities of the pension | ||||||
10 | fund over a 30-year rolling amortization period, as annually | ||||||
11 | updated and determined by an enrolled actuary employed by the | ||||||
12 | Department of Insurance or by an enrolled actuary retained by | ||||||
13 | the pension fund or the municipality. However, for each | ||||||
14 | municipal fiscal year until municipal fiscal year 2035, the | ||||||
15 | rolling amortization period specified in this paragraph shall | ||||||
16 | be reduced by one year for each municipal fiscal year after | ||||||
17 | 2026. In making these determinations, the required minimum | ||||||
18 | employer contribution shall be calculated each year as a level | ||||||
19 | dollar amount over the amortization period and shall be | ||||||
20 | determined under the entry age normal actuarial cost method, | ||||||
21 | and shall be determined using the most recent mortality tables | ||||||
22 | available and investment assumptions recommended by an | ||||||
23 | enrolled actuary employed by the Department of Insurance or by | ||||||
24 | an enrolled actuary retained by the pension fund or the | ||||||
25 | municipality. | ||||||
26 | For municipal fiscal year 2036 and each year thereafter, |
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1 | the annual requirements to be provided by such tax levy and the | ||||||
2 | required minimum contribution to the fund are equal to (1) the | ||||||
3 | normal cost of the pension fund for the year involved, plus (2) | ||||||
4 | an amount sufficient to bring the total assets of the pension | ||||||
5 | fund up to 100% of the total actuarial liabilities of the | ||||||
6 | pension fund over a 20-year rolling amortization period, as | ||||||
7 | annually updated and determined by an enrolled actuary employed | ||||||
8 | by the Department of Insurance or by an enrolled actuary | ||||||
9 | retained by the pension fund or the municipality. In making | ||||||
10 | these determinations, the required minimum employer | ||||||
11 | contribution shall be calculated each year as a level dollar | ||||||
12 | amount over the amortization period and shall be determined | ||||||
13 | under the entry age normal actuarial cost method, and shall be | ||||||
14 | determined using the most recent mortality tables available and | ||||||
15 | investment assumptions recommended by an enrolled actuary | ||||||
16 | employed by the Department of Insurance or by an enrolled | ||||||
17 | actuary retained by the pension fund or the municipality. "; and
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18 | by replacing line 11 on page 7 through line 18 on page 8 with | ||||||
19 | the following:
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20 | " For the purposes of this Section, for municipal fiscal | ||||||
21 | years 2021 through 2025, the annual actuarial requirements of | ||||||
22 | the pension fund and the required minimum contribution to the | ||||||
23 | fund are equal to (1) the normal cost of the
pension fund, or | ||||||
24 | 17.5% of the salaries and wages to be paid to firefighters
for | ||||||
25 | the year involved, whichever is greater, plus (2) an amount |
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1 | sufficient to bring the total assets of the pension fund up to | ||||||
2 | 100% of the total actuarial liabilities of the pension fund | ||||||
3 | over a 30-year rolling amortization period, as annually updated | ||||||
4 | and determined by an enrolled actuary employed by the | ||||||
5 | Department of Insurance or by an enrolled actuary retained by | ||||||
6 | the pension fund or the municipality. In making these | ||||||
7 | determinations, the required minimum employer contribution | ||||||
8 | shall be calculated each year as a level dollar amount over the | ||||||
9 | amortization period and shall be determined under the entry age | ||||||
10 | normal actuarial cost method, and shall be determined using the | ||||||
11 | most recent mortality tables available and investment | ||||||
12 | assumptions recommended by an enrolled actuary employed by the | ||||||
13 | Department of Insurance or by an enrolled actuary retained by | ||||||
14 | the pension fund or the municipality. | ||||||
15 | For the purposes of this Section, for municipal fiscal | ||||||
16 | years 2026 through 2035, the annual actuarial requirements of | ||||||
17 | the pension fund and the required minimum contribution to the | ||||||
18 | fund are equal to (1) the normal cost of the
pension fund, or | ||||||
19 | 17.5% of the salaries and wages to be paid to firefighters
for | ||||||
20 | the year involved, whichever is greater, plus (2) an amount | ||||||
21 | sufficient to bring the total assets of the pension fund up to | ||||||
22 | 100% of the total actuarial liabilities of the pension fund | ||||||
23 | over a 30-year rolling amortization period, as annually updated | ||||||
24 | and determined by an enrolled actuary employed by the | ||||||
25 | Department of Insurance or by an enrolled actuary retained by | ||||||
26 | the pension fund or the municipality. However, for each |
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1 | municipal fiscal year until municipal fiscal year 2035, the | ||||||
2 | rolling amortization period specified in this paragraph shall | ||||||
3 | be reduced by one year for each municipal fiscal year after | ||||||
4 | 2026. In making these determinations, the required minimum | ||||||
5 | employer contribution shall be calculated each year as a level | ||||||
6 | dollar amount over the amortization period and shall be | ||||||
7 | determined under the entry age normal actuarial cost method, | ||||||
8 | and shall be determined using the most recent mortality tables | ||||||
9 | available and investment assumptions recommended by an | ||||||
10 | enrolled actuary employed by the Department of Insurance or by | ||||||
11 | an enrolled actuary retained by the pension fund or the | ||||||
12 | municipality. | ||||||
13 | For the purposes of this Section, beginning municipal | ||||||
14 | fiscal year 2036 and each municipal fiscal year thereafter, the | ||||||
15 | annual actuarial requirements of the pension fund and the | ||||||
16 | required minimum contribution to the fund are equal to (1) the | ||||||
17 | normal cost of the
pension fund, or 17.5% of the salaries and | ||||||
18 | wages to be paid to firefighters
for the year involved, | ||||||
19 | whichever is greater, plus (2) an amount sufficient to bring | ||||||
20 | the total assets of the pension fund up to 100% of the total | ||||||
21 | actuarial liabilities of the pension fund over a 20-year | ||||||
22 | rolling amortization period, as annually updated and | ||||||
23 | determined by an enrolled actuary employed by the Department of | ||||||
24 | Insurance or by an enrolled actuary retained by the pension | ||||||
25 | fund or the municipality. In making these determinations, the | ||||||
26 | required minimum employer contribution shall be calculated |
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1 | each year as a level dollar amount over the amortization period | ||||||
2 | and shall be determined under the entry age normal actuarial | ||||||
3 | cost method, and shall be determined using the most recent | ||||||
4 | mortality tables available and investment assumptions | ||||||
5 | recommended by an enrolled actuary employed by the Department | ||||||
6 | of Insurance or by an enrolled actuary retained by the pension | ||||||
7 | fund or the municipality. ".
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