2005 Illinois 40 ILCS 5/ Illinois Pension Code. Division 1 - Additional Pension Funds - Transit Authorities
(40 ILCS 5/Art. 22 Div. 1 heading)
DIVISION 1.
ADDITIONAL PENSION
FUNDS ‑ TRANSIT AUTHORITIES
(40 ILCS 5/22‑101) (from Ch. 108 1/2, par. 22‑101)
Sec. 22‑101. Metropolitan Transit Authority (CTA) Pension Fund.
(a) There shall be established and maintained by the Authority created by
the "Metropolitan Transit Authority Act", approved April 12, 1945, as
amended, a financially sound pension and retirement system adequate to
provide for all payments when due under such established system or as
modified from time to time by ordinance of the Chicago Transit Board. For
this purpose, the Board must make contributions to the established system as required under this Section and may make any additional contributions provided for by Board ordinance or collective bargaining agreement. The participating employees shall make
such periodic payments to the established system as may be determined by
Board ordinance or collective bargaining agreement. The Board, in lieu of social security payments required to
be paid by private corporations engaged in similar activity, shall make
payments into such established system at least equal in amount to the
amount so required to be paid by such private corporations.
Provisions
shall be made by the Board for all Board members, officers and employees of
the Authority appointed pursuant to the "Metropolitan Transit Authority
Act" to become, subject to reasonable rules and regulations, members or
beneficiaries of the pension or retirement system with uniform rights,
privileges, obligations and status as to the class in which such officers
and employees belong. The terms, conditions and provisions of any pension
or retirement system or of any amendment or modification thereof affecting
employees who are members of any labor organization may be established,
amended or modified by agreement with such labor organization, but must be consistent with the requirements of this Section.
(b) Beginning January 1, 2009, the Authority shall make
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contributions to the retirement system in an amount which, together with the contributions of participants, interest earned on investments, and other income, will meet the cost of maintaining and administering the retirement plan in accordance with applicable actuarial recommendations and assumptions and the requirements of this Section. These contributions may be paid on a payroll or other periodic basis, but shall in any case be paid at least monthly.
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For retirement system fiscal years 2009 through 2058, the
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minimum contribution to the retirement system to be made by the Authority for each fiscal year shall be an amount determined jointly by the Authority and the trustee of the retirement system to be sufficient to bring the total assets of the retirement system up to 90% of its total actuarial liabilities by the end of fiscal year 2058. In making these determinations, the required Authority contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2058 and shall be determined under the projected unit credit actuarial cost method. Beginning in retirement system fiscal year 2059, the minimum Authority contribution for each fiscal year shall be the amount needed to maintain the total assets of the retirement system at 90% of the total actuarial liabilities of the system.
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For purposes of determining employer contributions and
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actuarial liabilities under this subsection, contributions and liabilities relating to health care benefits shall not be included. As used in this Section, "retirement system fiscal year" means the calendar year, or such other plan year as may be defined from time to time in the agreement known as the Retirement Plan for Chicago Transit Authority Employees, or its successor agreement.
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(c) The Authority and the trustee shall jointly certify
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to the Governor, the General Assembly, and the Board of the Regional Transportation Authority on or before November 15 of 2008 and of each year thereafter the amount of the required Authority contributions to the retirement system for the next retirement system fiscal year under subsection (b). The certification shall include a copy of the actuarial recommendations upon which it is based. In addition, copies of the certification shall be sent to the Commission on Government Forecasting and Accountability, the Mayor of Chicago, the Chicago City Council, and the Cook County Board.
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(d) The Authority shall take all actions lawfully available to it to separate the funding of health care benefits for retirees and their dependents and survivors from the funding for its retirement system. The Authority shall endeavor to achieve this separation as soon as possible, and in any event no later than January 1, 2009.
(e) This amendatory Act of the 94th General Assembly does not affect or impair the right of either the Authority or its employees to collectively bargain the amount or level of employee contributions to the retirement system.
(Source: P.A. 94‑839, eff. 6‑6‑06.)
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(40 ILCS 5/22‑102) (from Ch. 108 1/2, par. 22‑102)
Sec. 22‑102.
Local Mass Transit District Pension Fund.
The Board of Trustees created under the "Local Mass Transit District
Act", approved July 21, 1959, as amended, may undertake the continuation
of employee pension and retirement funds of an existing public or privately
owned transportation system or systems that have been acquired by the
Board, upon such terms and conditions as the Board shall determine.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/22‑103)
Sec. 22‑103. Regional Transportation Authority and related pension plans.
(a) As used in this Section:
"Affected pension plan" means a defined‑benefit pension plan supported in whole or in part by employer contributions and maintained by the Regional Transportation Authority, the Suburban Bus Division, or the Commuter Rail Division, or any combination thereof, under the general authority of the Regional Transportation Authority Act, including but not limited to any such plan that has been established under or is subject to a collective bargaining agreement or is limited to employees covered by a collective bargaining agreement. "Affected pension plan" does not include any pension fund or retirement system subject to Section 22‑101 of this Section.
"Authority" means the Regional Transportation Authority created under
the Regional Transportation Authority Act.
"Contributing employer" means an employer that is required to make contributions to an affected pension plan under the terms of that plan.
"Funding ratio" means the ratio of an affected pension plan's assets to the present value of its actuarial liabilities, as determined at its latest actuarial valuation in accordance with applicable actuarial assumptions and recommendations.
"Under‑funded pension plan" or "under‑funded" means an affected pension plan that, at the time of its last actuarial valuation, has a funding ratio of less than 90%.
(b) The contributing employers of each affected pension plan have a general duty to make the required employer contributions to the affected pension plan in a timely manner in accordance with the terms of the plan. A contributing employer must make contributions to the affected pension plan as required under this subsection and, if applicable, subsection (c); a contributing employer may make any additional contributions provided for by the board of the employer or collective bargaining agreement.
(c) In the case of an affected pension plan that is under‑funded on January 1, 2009 or becomes under‑funded at any time after that date, the contributing employers shall contribute to the affected pension plan, in addition to all amounts otherwise required, amounts sufficient to bring the funding ratio of the affected pension plan up to 90% in accordance with an amortization schedule adopted jointly by the contributing employers and the trustee of the affected pension plan. The amortization schedule may extend for any period up to a maximum of 50 years and shall provide for additional employer contributions in substantially equal annual amounts over the selected period. If the contributing employers and the trustee of the affected pension plan do not agree on an appropriate period for the amortization schedule within 6 months of the date of determination that the plan is under‑funded, then the amortization schedule shall be based on a period of 50 years.
In the case of an affected pension plan that has more than one contributing employer, each contributing employer's share of the total additional employer contributions required under this subsection shall be determined: (i) in proportion to the amounts, if any, by which the respective contributing employers have failed to meet their contribution obligations under the terms of the affected pension plan; or (ii) if all of the contributing employers have met their contribution obligations under the terms of the affected pension plan, then in the same proportion as they are required to contribute under the terms of that plan. In the case of an affected pension plan that has only one contributing employer, that contributing employer is responsible for all of the additional employer contributions required under this subsection.
If an under‑funded pension plan is determined to have achieved a funding ratio of at least 90% during the period when an amortization schedule is in force under this Section, the contributing employers and the trustee of the affected pension plan, acting jointly, may cancel the amortization schedule and the contributing employers may cease making additional contributions under this subsection for as long as the affected pension plan retains a funding ratio of at least 90%.
(d) Beginning January 1, 2009, if the Authority fails to pay to an affected pension fund within 30 days after it is due (i) any employer contribution that it is required to make as a contributing employer, (ii) any additional employer contribution that it is required to pay under subsection (c), or (iii) any payment that it is required to make under Section 4.02a or 4.02b of the Regional Transportation Authority Act, the trustee of the affected pension fund shall promptly so notify the Commission on Government Forecasting and Accountability, the Mayor of Chicago, the Governor, and the General Assembly.
(e) For purposes of determining employer contributions,
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assets, and actuarial liabilities under this subsection, contributions, assets, and liabilities relating to health care benefits shall not be included.
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(f) This amendatory Act of the 94th General Assembly does not affect or impair the right of any contributing employer or its employees to collectively bargain the amount or level of employee contributions to an affected pension plan, to the extent that the plan includes employees subject to collective bargaining.
(Source: P.A. 94‑839, eff. 6‑6‑06.)
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