40 ILCS 5/5-168
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 5 - Policemen's Annuity And Benefit Fund--Cities Over 500,000

   (from Ch. 108 1/2, par. 5-168)Sec. 5-168. Financing.(a) Except as expressly provided in this Section, the city shall levy a  tax annually upon all taxable property therein for the purpose of providing  revenue for the fund.The tax shall be at a rate that will produce a sum which, when added to the  amounts deducted from the policemen's salaries and the amounts deposited in  accordance with subsection (g), is sufficient for the purposes of the fund.For the years 1968 and 1969, the city council shall levy a tax  annually at a rate on the dollar of the assessed  valuation of all taxable property that will produce, when extended, not  to exceed $9,700,000.  Beginning with the year 1970 and through 2014, the city council shall levy a tax annually at a rate on the  dollar of the assessed valuation of all taxable property that will  produce when extended an amount not to exceed the total amount of  contributions by the policemen to the Fund made in the calendar year 2  years before the year for which the applicable annual tax is levied,  multiplied by 1.40 for the tax levy year 1970; by 1.50 for the year  1971; by 1.65 for 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for  1975 through 1981; by 2.00 for 1982 and for each tax levy year through 2014. Beginning in tax levy year 2015, the city council shall levy a tax annually at a rate on the dollar of the assessed valuation of all taxable property that will produce when extended an annual amount that is equal to no less than the amount of the city's contribution in each of the following payment years: for 2016, $420,000,000; for 2017, $464,000,000; for 2018, $500,000,000; for 2019, $557,000,000; for 2020, $579,000,000.Beginning in tax levy year 2020, the city council shall levy a tax annually at a rate on the dollar of the assessed valuation of all taxable property that will produce when extended an annual amount that is equal to no less than (1) the normal cost to the Fund, plus (2) an annual amount sufficient to bring the total assets of the Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2055, as annually updated and determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the Fund. In making these determinations, the required minimum employer contribution shall be calculated each year as a level percentage of payroll over the years remaining up to and including fiscal year 2055 and shall be determined under the entry age normal actuarial cost method. Beginning in payment year 2056, the city's total required contribution in that year and each year thereafter shall be an annual amount that is equal to no less than (1) the normal cost of the Fund, plus (2) the annual amount determined by an enrolled actuary employed by the Illinois Department of Insurance  or by an enrolled actuary retained by the Fund to 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, utilizing the entry age normal cost method as provided above.For the purposes of this subsection (a), contributions by the policeman to the Fund shall not include payments made by a policeman to establish credit under Section 5-214.2 of this Code.(a-5) For purposes of determining the required employer contribution to the Fund, the value of the Fund's assets shall be equal to the actuarial value of the Fund's assets, which shall be calculated as follows:(1) On March 30, 2011, the actuarial value of the     Fund's assets shall be equal to the market value of the assets as of that date.(2) In determining the actuarial value of the Fund's     assets for fiscal years after March 30, 2011, 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 that fiscal year.(a-7) If the city fails to transmit to the Fund contributions required of it under this Article for more than 90 days after the payment of those contributions is due, the Fund shall, after giving notice to the city, certify to the State Comptroller the amounts of the delinquent payments, and the Comptroller must, beginning in fiscal year 2016, 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 fiscal year 2016, one-third of the total     amount of any grants of State funds to the city;(2) in fiscal year 2017, two-thirds of the total     amount of any grants of State funds to the city; and(3) in fiscal year 2018 and each  fiscal 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) The tax shall be levied and collected in like manner with the  general taxes of the city, and is in addition to all other taxes which the  city is now or may hereafter be authorized to levy upon all taxable property  therein, and is 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  law 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 Section 8-3-1 of the Illinois  Municipal Code, shall not consider the tax herein authorized as a part  of the general tax levy for city purposes, and shall not include the tax  in any limitation of the percent of the assessed valuation upon which  taxes are required to be extended for the city.(c) On or before January 10 of each year, the board shall notify the  city council of the requirement that the tax herein authorized be levied by  the city council for that current year.  The board shall compute the  amounts necessary for the purposes of this fund to be credited to the  reserves established and maintained within the fund; shall make an  annual determination of the amount of the required city contributions;  and shall certify the results thereof to the city council.As soon as any revenue derived from the tax is collected it shall be  paid to the city treasurer of the city and shall be held by him for the  benefit of the fund in accordance with this Article.(d) If the funds available are insufficient during any year to meet the  requirements of this Article, the city may issue tax anticipation warrants  against the tax levy for the current fiscal year.(e) The various sums, including interest, to be contributed by the city,  shall be taken from the revenue derived from such tax or otherwise as expressly  provided in this Section.  Any moneys of the city derived from any source other  than the tax herein authorized shall not be used for any purpose of the fund  nor the cost of administration thereof, unless applied to make the deposit  expressly authorized in this Section  or the additional city contributions required under subsection (h).(f) If it is not possible or practicable for the city to make its  contributions at the time that salary deductions are made, the city  shall make such contributions as soon as possible thereafter, with  interest thereon to the time it is made.(g) 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 no later than  March 1 of that year 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 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.(h) In addition to the contributions required under the other provisions  of this Article, by November 1 of the following specified years, the city shall  deposit with the city treasurer for the benefit of the fund, to be held and  used in accordance with this Article, the following specified amounts:  $6,300,000 in 1999;  $5,880,000 in 2000;  $5,460,000 in 2001;  $5,040,000 in 2002; and  $4,620,000 in 2003.The additional city contributions required under this subsection are  intended to decrease the unfunded liability of the fund and shall not decrease  the amount of the city contributions required under the other provisions of  this Article.  The additional city contributions made under this subsection  may be used by the fund for any of its lawful purposes.(i) Any proceeds received by the city in relation to the operation of a casino or casinos within the city shall be expended by the city for payment to the Policemen's Annuity and Benefit Fund of Chicago to satisfy the city contribution obligation in any year. (Source: P.A. 99-506, eff. 5-30-16.)