Sec. 1A-111. Actuarial statements by pension funds established under Article 3 or 4.

408 words·~2 min read·/il/chapter-40/act-5/1a-111

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(a)For each pension fund established under Article 3 or 4 of this Code, a complete actuarial statement applicable to its plan year shall be included as part of its annual statement in accordance with the following:

(1)Prior to the conclusion of the transition period, if the actuarial statement is

prepared by a person other than the Department, it shall be filed with the Division within 9 months after the close of the fiscal year of the pension fund. Any pension fund that fails to file within that time shall be subject to the penalty provisions of Section 1A-113. The statement shall be prepared by or under the supervision of a qualified actuary, signed by the qualified actuary, and contain such information as the Division may by rule require.

(2)After the conclusion of the transition period, each actuarial statement shall be

prepared by or under the supervision of a qualified actuary retained by the Consolidated Fund and signed by the qualified actuary and shall contain such information as the Division may by rule require. The actuarial statement shall be filed with the Division within 9 months after the close of the fiscal year of the pension fund.

(a-5) Prior to the conclusion of the transition period, the actuarial statements may be prepared utilizing the method for calculating the actuarially required contribution for the pension fund that was in effect prior to the effective date of this amendatory Act of the 101st General Assembly.

After the conclusion of the transition period, the actuarial statements shall be prepared by or under the supervision of a qualified actuary retained by the Consolidated Fund, and if a change occurs in an actuarial or investment assumption that increases or decreases the actuarially required contribution for the pension fund, that change shall be implemented in equal annual amounts over the 3-year period beginning in the fiscal year of the pension fund in which such change first occurs.

The actuarially required contribution as described in this subsection shall determine the annual required employer contribution.

(b)For the purposes of this Section, "qualified actuary" means

(i)a member of the American Academy of Actuaries, or

(ii)an individual who has demonstrated to the satisfaction of the Director that he or she has the educational background necessary for the practice of actuarial science and has at least 7 years of actuarial experience.