summary
Introduced
01/31/2025
01/31/2025
In Committee
01/31/2025
01/31/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the General Assembly Article of the Illinois Pension Code. Provides that, in any fiscal year in which the total assets of the System are at least 90% of the total actuarial liabilities of the System, the minimum contribution by the State for that fiscal year shall be the System's normal cost for the fiscal year, plus a supplemental payment in any year in which the total assets of the System are less than 120% of the total actuarial liabilities. Provides that the supplemental payment is to be calculated by using a 30-year rolling amortization to target a ratio of the System's total assets to the System's total actuarial liabilities of 120%. Provides that, if the ratio of the System's total assets to the System's total actuarial liabilities is 120% or greater, but 130% or less, the State is only obligated to make a payment of the normal cost for the fiscal year. Provides that, in any fiscal year in which the ratio of the System's total assets to the System's total actuarial liabilities exceeds 130%, no payment, either for the normal cost or a supplemental payment, shall be paid to the System. Makes conforming changes.
AI Summary
This bill amends the Illinois Pension Code to modify how state contributions are calculated for the pension system. Specifically, if the system's total assets are at least 90% of its total actuarial liabilities, the state's minimum contribution will be the system's normal cost for that fiscal year, plus a supplemental payment if the assets are less than 120% of the total actuarial liabilities. The supplemental payment will be calculated using a 30-year rolling amortization to target a 120% asset-to-liability ratio. If the system's assets reach 120-130% of its liabilities, the state is only required to pay the normal cost. If the assets exceed 130% of liabilities, no payment is required. This approach provides a more flexible funding mechanism that adjusts state contributions based on the pension system's financial health, potentially reducing the state's financial burden when the system is well-funded while ensuring continued support when it needs additional resources. The changes aim to create a more dynamic and responsive approach to pension system funding.
Sponsors (1)
Last Action
Referred to Assignments (on 01/31/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1451&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1451.htm |
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