August 15, 2012
UPDATE: On Thursday, August 16, 2012, Governor Quinn signed into law the changes to the Chicago Park District Pension Fund fiscal year as Public Act 097-0894.
On May 31, 2012, the Illinois General Assembly passed Senate Bill 3629, which amends the Chicago Park District’s Pension Code so that the fiscal year of the pension fund will match the Park District’s fiscal year. Beginning in 2013, the fiscal year for the District’s pension fund will run from January 1st to December 31st instead of July 1st to June 30th. The bill is currently awaiting approval from Governor Quinn.
The change in fiscal year will affect pension contributions made by the District. Illinois law requires the District to make a pension contribution equal to 1.10 times the employee contributions during the fiscal year two years prior to the year for which the tax is levied.
As the District’s new fiscal year will begin on January 1, 2013, the period between July 1, 2012 and December 31, 2012 will be referred to as a short fiscal year and a separate Comprehensive Annual Financial Report will be produced for this six-month period. During the six-month period, employer contributions will be equal to 1.10 times the employee contributions made from July 1, 2010 to December 31, 2010. The employer contribution for FY2013 will be 1.10 times the contributions made by employees between January 1, 2011 to December 31, 2011.
Pending Governor Quinn’s approval of the changes to the Chicago Park District’s pension fund fiscal year, of the governments the Civic Federation routinely monitors, only DuPage County and Cook County pension funds will follow fiscal years different from those of their governments.
[1] Certified Teachers employed by the Chicago Board of Education participate in the Public School Teachers’ Pension and Retirement Fund of Chicago. Most other employees of the Board of Education are enrolled in the City of Chicago’s Municipal Employees’ Annuity and Benefit Fund. Approximately 16,061, or 52.3%, of Municipal Fund members considered to be active by the Fund are Board of Education employees. Chicago Public Schools, Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011, p. 75. A very small number of Board of Education employees are enrolled in the Laborers’ Fund.
[2] Employees of the City Colleges of Chicago participate in the State Universities Retirement System of Illinois.
[3] Employees of DuPage County participate in the Illinois Municipal Retirement Fund.
[4] Pending approval of Senate Bill 3629 by Governor Quinn.