(a) The city council or the board of trustees of the municipality shall annually levy a tax upon all the taxable property of the municipality at the rate on the dollar which will produce an amount which, when added to the deductions from the salaries or wages of police officers, and revenues available from other sources, will equal a sum sufficient to meet the annual requirements of the police pension fund. The annual requirements to be provided by such tax levy are equal to (1) the normal cost of the pension fund for the year involved, plus (2) an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2040, as annually updated and determined by an enrolled actuary employed by the Illinois Department of Insurance or by an enrolled actuary retained by the pension fund or the municipality. 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 2040 and shall be determined under the projected unit credit actuarial cost method. The tax shall be levied and collected in the same manner as the general taxes of the municipality, and in addition to all other taxes now or hereafter authorized to be levied upon all property within the municipality, and shall be in addition to the amount authorized to be levied for general purposes as provided by § 8-3-1 of the Illinois Municipal Code, approved May 29, 1961, as amended. The tax shall be forwarded directly to the treasurer of the board within 30 business days after receipt by the county.
     (b) For purposes of determining the required employer contribution to a pension fund, the value of the pension fund’s assets shall be equal to the actuarial value of the pension fund’s assets, which shall be calculated as follows:
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Terms Used In Illinois Compiled Statutes 40 ILCS 5/3-125

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

         (1) On March 30, 2011, the actuarial value of a
    
pension 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
    
System’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.
    (c) If a participating municipality 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 may, after giving notice to the municipality, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in fiscal year 2016, deduct and remit to the fund the certified amounts or a portion of those amounts from the following proportions of payments of State funds to the municipality:
         (1) in fiscal year 2016, one-third of the total
    
amount of any payments of State funds to the municipality;
        (2) in fiscal year 2017, two-thirds of the total
    
amount of any payments of State funds to the municipality; and
        (3) in fiscal year 2018 and each fiscal year
    
thereafter, the total amount of any payments of State funds to the municipality.
    The State Comptroller may not deduct from any payments of State funds to the municipality more than the amount of delinquent payments certified to the State Comptroller by the fund.
     (d) The police pension fund shall consist of the following moneys which shall be set apart by the treasurer of the municipality:
         (1) All moneys derived from the taxes levied
    
hereunder;
        (2) Contributions by police officers under Section
    
3-125.1;
        (2.5) All moneys received from the Police Officers’
    
Pension Investment Fund as provided in Article 22B of this Code;
        (3) All moneys accumulated by the municipality under
    
any previous legislation establishing a fund for the benefit of disabled or retired police officers;
        (4) Donations, gifts or other transfers authorized by
    
this Article.
    (e) The Commission on Government Forecasting and Accountability shall conduct a study of all funds established under this Article and shall report its findings to the General Assembly on or before January 1, 2013. To the fullest extent possible, the study shall include, but not be limited to, the following:
         (1) fund balances;
         (2) historical employer contribution rates for each
    
fund;
        (3) the actuarial formulas used as a basis for
    
employer contributions, including the actual assumed rate of return for each year, for each fund;
        (4) available contribution funding sources;
         (5) the impact of any revenue limitations caused by
    
PTELL and employer home rule or non-home rule status; and
        (6) existing statutory funding compliance procedures
    
and funding enforcement mechanisms for all municipal pension funds.
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