IL HB5644

Amends the Downstate Police and Downstate Firefighter Articles of the Illinois Pension Code to allow municipalities to elect a 30-year rolling amortization period for calculating actuarial liabilities instead of the standard deadline of fiscal year 2040.

Municipalities may adopt this option through a duly authorized resolution or ordinance, allowing them to bring pension fund assets up to 90% of actuarial liabilities within a rolling 30-year period rather than by the end of fiscal year 2040.

For municipalities that elect the 30-year rolling amortization, required employer contributions are calculated as a level percentage of payroll under the projected unit credit actuarial cost method.

Establishes that the State Comptroller may withhold delinquent pension contributions from state grants to municipalities beginning in fiscal year 2016, with deductions increasing from one-third to two-thirds to full amount over fiscal years 2016-2018.

Requires the Commission on Government Forecasting and Accountability to conduct a study of all municipal pension funds and report findings by January 1, 2013, including analysis of fund balances, contribution rates, actuarial formulas, and funding enforcement mechanisms.