40 ILCS 5/8-173
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 8 - Municipal Employees', Officers', And Officials' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

 (from Ch. 108 1/2, par. 8-173)Sec. 8-173. Financing; tax levy.(a) Except as provided in subsection (f) of this Section, the city council  of the city shall levy a tax annually upon all taxable property in the city at  a rate that will produce a sum which, when added to the amounts deducted from  the salaries of the employees or otherwise contributed by them and the  amounts deposited under subsection (f), will be sufficient for the  requirements of this Article, but which when extended will produce an amount  not to exceed the greater of the following: (a) the sum obtained by the levy  of a tax of .1093% of the value, as equalized or assessed by the Department  of Revenue, of all taxable property within such city, or (b) the sum of  $12,000,000.  However any city in which a Fund has been established and in operation  under this Article for more than 3 years prior to 1970 shall  levy for the year 1970 a tax at a rate on the dollar of assessed  valuation of all taxable property that will produce, when extended, an  amount not to exceed 1.2 times the total amount of contributions made by  employees to the Fund for annuity purposes in the calendar year 1968,  and, for the year 1971 and 1972 such levy that will produce, when  extended, an amount not to exceed 1.3 times the total amount of  contributions made by employees to the Fund for annuity  purposes in the calendar years 1969 and 1970, respectively; and for the  year 1973 an amount not to exceed 1.365 times such total amount of  contributions made by employees for annuity purposes in the calendar  year 1971; and for the year 1974 an amount not to exceed 1.430 times  such total amount of contributions made by employees for annuity  purposes in the calendar year 1972; and for the year 1975 an amount not  to exceed 1.495 times such total amount of contributions made by  employees for annuity purposes in the calendar year 1973; and for the year 1976  an amount not to exceed 1.560 times such total amount of contributions made by  employees for annuity purposes in the calendar year 1974; and for the year 1977  an amount not to exceed 1.625 times such total amount of contributions made by  employees for annuity purposes in the calendar year 1975; and for the year 1978  and each year thereafter through levy year 2016, such levy as will produce, when  extended, an amount not to exceed the total amount of  contributions made by or on behalf of employees to the Fund for annuity  purposes in the calendar year 2 years prior to the year for which the annual  applicable tax is levied, multiplied by 1.690 for the years 1978 through 1998  and by 1.250 for the year 1999 and for each year thereafter through levy year 2016. Beginning in levy year 2017, and in each year thereafter, the levy shall not exceed the amount of the city's total required contribution to the Fund for the next payment year, as determined under subsection (a-5). For the purposes of this Section, the payment year is the year immediately following the levy year.The tax shall be levied and collected in like manner with the general  taxes of the city, and shall be 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 laws 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 the  provisions of any Act concerning the levy and extension of taxes, shall  not consider the tax herein provided for as a part of the general tax  levy for city purposes, and shall not include the same within any  limitation of the percent of the assessed valuation upon which taxes are  required to be extended for such city.Revenues derived from such tax shall be paid to the city treasurer of  the city as collected and held by the city treasurer 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 city may issue tax  anticipation warrants against the current tax levy.The city may continue to use other lawfully available funds in lieu of all or part of the levy, as provided under subsection (f) of this Section.(a-5) (1) Beginning in payment year 2018, the city's required annual contribution to the Fund for payment years 2018 through 2022 shall be: for 2018, $266,000,000; for 2019, $344,000,000; for 2020, $421,000,000; for 2021, $499,000,000; and for 2022, $576,000,000.(2) For payment years 2023 through 2058, the city's required annual contribution to the Fund shall be the amount determined by the Fund to be equal to the sum of (i) the city's portion of the projected normal cost for that fiscal year, plus (ii) an amount determined on a level percentage of applicable employee payroll basis (reflecting any limits on individual participants' pay that apply for benefit and contribution purposes under this plan) that is sufficient to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of 2058.(3) For payment years after 2058, the city's required annual contribution to  the Fund shall be equal to the amount, if any, needed to bring the total actuarial assets of the Fund up to 90% of the total actuarial liabilities of the Fund as of the end of the year. In making the determinations under paragraphs (2) and (3) of this subsection, the actuarial calculations shall be determined under the entry age normal actuarial cost method, and any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following the fiscal year.To the extent that the city's contribution for any of the payment years referenced in this subsection is made with property taxes, those property taxes shall be levied, collected, and paid to the Fund in a like manner with the general taxes of the city.(a-10) If the city fails to transmit to the Fund contributions required of it under this Article by December 31 of the year in which such contributions are due, the Fund may, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in payment year 2018, deduct and deposit into the Fund the certified amounts or a portion of those amounts from the following proportions of grants of State funds to the city:(1) in payment year 2018, one-third of the total     amount of any grants of State funds to the city;(2) in payment year 2019, two-thirds of the total     amount of any grants of State funds to the city; and(3) in payment year 2020 and each payment year     thereafter, the total amount of any grants of State funds to the city.The State Comptroller may not deduct from any grants of State funds to the city more than the amount of delinquent payments certified to the State Comptroller by the Fund.(b) On or before July 1, 2017, and each July 1 thereafter, the board shall certify to the  city council the annual amounts required under this Article, for which the tax herein  provided shall be levied for the following year.  The board shall compute  the amounts necessary to be credited to the reserves established and  maintained as herein provided, and shall make an annual determination of  the amount of the required city contributions, and certify the results  thereof to the city council.(c) In respect to employees of the city who are transferred to the  employment of a park district by virtue of the "Exchange of Functions  Act of 1957", the corporate authorities of the park district shall  annually levy a tax upon all the taxable property in the park district  at such rate per cent of the value of such property, as equalized or  assessed by the Department of Revenue, as shall be  sufficient, when added to the amounts deducted from their salaries and  otherwise contributed by them to provide the benefits to which they and  their dependents and beneficiaries are entitled under this Article.  The city  shall not levy a tax hereunder in respect to such employees.The tax so levied by the park district shall be in addition to and  exclusive of all other taxes authorized to be levied by the park  district for corporate, annuity fund, or other purposes.  The county  clerk of the county in which the park district is located, in reducing  any tax levied under the provisions of any act concerning the levy and  extension of taxes shall not consider such tax as part of the general  tax levy for park purposes, and shall not include the same in any  limitation of the per cent of the assessed valuation upon which taxes  are required to be extended for the park district.  The proceeds of the  tax levied by the park district, upon receipt by the district, shall be  immediately paid over to the city treasurer of the city for the uses and  purposes of the fund.The various sums to be contributed by the city and park district and  allocated for the purposes of this Article, and any interest to be  contributed by the city, shall be derived from the revenue from the taxes  authorized in this Section or otherwise as expressly provided  in this Section.If it is not possible or practicable for the city to make  contributions for age and service annuity and widow's annuity at the  same time that employee contributions are made for such  purposes, such city contributions shall be construed to be due and  payable as of the end of the fiscal year for which the tax is levied and  shall accrue thereafter with interest at the effective rate until paid.(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 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 City 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 City Council.  Any such  amounts shall become a credit to the City and will be used to reduce the  amount which the City 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 municipality  contribution rate for all such employees.  If this option is elected, the  City 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 City and  be used to reduce the amount which the City would otherwise contribute  during succeeding years for all employees.(f) 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 for the benefit of the fund, to be held in accordance with  this 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 by  the city 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.  (Source: P.A. 100-23, eff. 7-6-17.)