SB3087 EnrolledLRB096 20289 RLC 35901 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 3. The State Finance Act is amended by changing
5Section 6z-78 as follows:
 
6    (30 ILCS 105/6z-78)
7    Sec. 6z-78. Capital Projects Fund; bonded indebtedness;
8transfers. Money in the Capital Projects Fund shall, if and
9when the State of Illinois incurs any bonded indebtedness using
10the bond authorizations authorization enacted in Public Act
1196-36 and this amendatory Act of the 96th General Assembly this
12amendatory Act of the 96th General Assembly, be set aside and
13used for the purpose of paying and discharging annually the
14principal and interest on that bonded indebtedness then due and
15payable.
16    In addition to other transfers to the General Obligation
17Bond Retirement and Interest Fund made pursuant to Section 15
18of the General Obligation Bond Act, upon each delivery of
19general obligation bonds using bond authorizations
20authorization enacted in Public Act 96-36 and this amendatory
21Act of the 96th General Assembly this amendatory Act of the
2296th General Assembly the State Comptroller shall compute and
23certify to the State Treasurer the total amount of principal

 

 

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1of, interest on, and premium, if any, on such bonds during the
2then current and each succeeding fiscal year. With respect to
3the interest payable on variable rate bonds, such
4certifications shall be calculated at the maximum rate of
5interest that may be payable during the fiscal year, after
6taking into account any credits permitted in the related
7indenture or other instrument against the amount of such
8interest required to be appropriated for the period.
9    (a) Except as provided for in subsection (b), on or before
10the last day of each month, the State Treasurer and State
11Comptroller shall transfer from the Capital Projects Fund to
12the General Obligation Bond Retirement and Interest Fund an
13amount sufficient to pay the aggregate of the principal of,
14interest on, and premium, if any, on the bonds payable on their
15next payment date, divided by the number of monthly transfers
16occurring between the last previous payment date (or the
17delivery date if no payment date has yet occurred) and the next
18succeeding payment date. Interest payable on variable rate
19bonds shall be calculated at the maximum rate of interest that
20may be payable for the relevant period, after taking into
21account any credits permitted in the related indenture or other
22instrument against the amount of such interest required to be
23appropriated for that period. Interest for which moneys have
24already been deposited into the capitalized interest account
25within the General Obligation Bond Retirement and Interest Fund
26shall not be included in the calculation of the amounts to be

 

 

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1transferred under this subsection.
2    (b) On or before the last day of each month, the State
3Treasurer and State Comptroller shall transfer from the Capital
4Projects Fund to the General Obligation Bond Retirement and
5Interest Fund an amount sufficient to pay the aggregate of the
6principal of, interest on, and premium, if any, on the bonds
7issued prior to January 1, 2012 pursuant to Section 4(d) of the
8General Obligation Bond Act payable on their next payment date,
9divided by the number of monthly transfers occurring between
10the last previous payment date (or the delivery date if no
11payment date has yet occurred) and the next succeeding payment
12date. If the available balance in the Capital Projects Fund is
13not sufficient for the transfer required in this subsection,
14the State Treasurer and State Comptroller shall transfer the
15difference from the Road Fund to the General Obligation Bond
16Retirement and Interest Fund; except that such Road Fund
17transfers shall constitute a debt of the Capital Projects Fund
18which shall be repaid according to subsection (c). Interest
19payable on variable rate bonds shall be calculated at the
20maximum rate of interest that may be payable for the relevant
21period, after taking into account any credits permitted in the
22related indenture or other instrument against the amount of
23such interest required to be appropriated for that period.
24Interest for which moneys have already been deposited into the
25capitalized interest account within the General Obligation
26Bond Retirement and Interest Fund shall not be included in the

 

 

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1calculation of the amounts to be transferred under this
2subsection.
3    (c) On the first day of any month when the Capital Projects
4Fund is carrying a debt to the Road Fund due to the provisions
5of subsection (b), the State Treasurer and State Comptroller
6shall transfer from the Capital Projects Fund to the Road Fund
7an amount sufficient to discharge that debt. These transfers to
8the Road Fund shall continue until the Capital Projects Fund
9has repaid to the Road Fund all transfers made from the Road
10Fund pursuant to subsection (b). Notwithstanding any other law
11to the contrary, transfers to the Road Fund from the Capital
12Projects Fund shall be made prior to any other expenditures or
13transfers out of the Capital Projects Fund.
14(Source: P.A. 96-36, eff. 7-13-09; 96-820, eff. 11-18-09.)
 
15    Section 5. The General Obligation Bond Act is amended by
16changing Sections 2, 3, 4, 5, 6, 7, and 9 as follows:
 
17    (30 ILCS 330/2)  (from Ch. 127, par. 652)
18    Sec. 2. Authorization for Bonds. The State of Illinois is
19authorized to issue, sell and provide for the retirement of
20General Obligation Bonds of the State of Illinois for the
21categories and specific purposes expressed in Sections 2
22through 8 of this Act, in the total amount of $41,379,777,443
23$37,217,777,443 $36,967,777,443.
24    The bonds authorized in this Section 2 and in Section 16 of

 

 

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1this Act are herein called "Bonds".
2    Of the total amount of Bonds authorized in this Act, up to
3$2,200,000,000 in aggregate original principal amount may be
4issued and sold in accordance with the Baccalaureate Savings
5Act in the form of General Obligation College Savings Bonds.
6    Of the total amount of Bonds authorized in this Act, up to
7$300,000,000 in aggregate original principal amount may be
8issued and sold in accordance with the Retirement Savings Act
9in the form of General Obligation Retirement Savings Bonds.
10    Of the total amount of Bonds authorized in this Act, the
11additional $10,000,000,000 authorized by Public Act 93-2 and
12the $3,466,000,000 authorized by Public Act 96-43 shall be used
13solely as provided in Section 7.2.
14    The issuance and sale of Bonds pursuant to the General
15Obligation Bond Act is an economical and efficient method of
16financing the long-term capital needs of the State. This Act
17will permit the issuance of a multi-purpose General Obligation
18Bond with uniform terms and features. This will not only lower
19the cost of registration but also reduce the overall cost of
20issuing debt by improving the marketability of Illinois General
21Obligation Bonds.
22(Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36,
23eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10;
2496-1000, eff. 7-2-10; revised 9-3-10.)
 
25    (30 ILCS 330/3)  (from Ch. 127, par. 653)

 

 

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1    Sec. 3. Capital Facilities. The amount of $8,900,463,443
2$7,968,463,443 is authorized to be used for the acquisition,
3development, construction, reconstruction, improvement,
4financing, architectural planning and installation of capital
5facilities within the State, consisting of buildings,
6structures, durable equipment, land, interests in land, and the
7costs associated with the purchase and implementation of
8information technology, including but not limited to the
9purchase of hardware and software, for the following specific
10purposes:
11        (a) $3,007,228,000 $2,511,228,000 for educational
12    purposes by State universities and colleges, the Illinois
13    Community College Board created by the Public Community
14    College Act and for grants to public community colleges as
15    authorized by Sections 5-11 and 5-12 of the Public
16    Community College Act;
17        (b) $1,648,420,000 $1,617,420,000 for correctional
18    purposes at State prison and correctional centers;
19        (c) $599,183,000 $575,183,000 for open spaces,
20    recreational and conservation purposes and the protection
21    of land;
22        (d) $691,917,000 $664,917,000 for child care
23    facilities, mental and public health facilities, and
24    facilities for the care of disabled veterans and their
25    spouses;
26        (e) $1,777,990,000 $1,630,990,000 for use by the

 

 

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1    State, its departments, authorities, public corporations,
2    commissions and agencies;
3        (f) $818,100 for cargo handling facilities at port
4    districts and for breakwaters, including harbor entrances,
5    at port districts in conjunction with facilities for small
6    boats and pleasure crafts;
7        (g) $274,877,074 $248,877,074 for water resource
8    management projects;
9        (h) $16,940,269 for the provision of facilities for
10    food production research and related instructional and
11    public service activities at the State universities and
12    public community colleges;
13        (i) $36,000,000 for grants by the Secretary of State,
14    as State Librarian, for central library facilities
15    authorized by Section 8 of the Illinois Library System Act
16    and for grants by the Capital Development Board to units of
17    local government for public library facilities;
18        (j) $25,000,000 for the acquisition, development,
19    construction, reconstruction, improvement, financing,
20    architectural planning and installation of capital
21    facilities consisting of buildings, structures, durable
22    equipment and land for grants to counties, municipalities
23    or public building commissions with correctional
24    facilities that do not comply with the minimum standards of
25    the Department of Corrections under Section 3-15-2 of the
26    Unified Code of Corrections;

 

 

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1        (k) $5,000,000 for grants in fiscal year 1988 by the
2    Department of Conservation for improvement or expansion of
3    aquarium facilities located on property owned by a park
4    district;
5        (l) $588,590,000 $432,590,000 to State agencies for
6    grants to local governments for the acquisition,
7    financing, architectural planning, development,
8    alteration, installation, and construction of capital
9    facilities consisting of buildings, structures, durable
10    equipment, and land; and
11        (m) $228,500,000 $203,500,000 for the Illinois Open
12    Land Trust Program as defined by the Illinois Open Land
13    Trust Act.
14    The amounts authorized above for capital facilities may be
15used for the acquisition, installation, alteration,
16construction, or reconstruction of capital facilities and for
17the purchase of equipment for the purpose of major capital
18improvements which will reduce energy consumption in State
19buildings or facilities.
20(Source: P.A. 96-36, eff. 7-13-09; 96-37, eff. 7-13-09;
2196-1000, eff. 7-2-10.)
 
22    (30 ILCS 330/4)  (from Ch. 127, par. 654)
23    Sec. 4. Transportation. The amount of $12,443,799,000
24$9,948,799,000 is authorized for use by the Department of
25Transportation for the specific purpose of promoting and

 

 

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1assuring rapid, efficient, and safe highway, air and mass
2transportation for the inhabitants of the State by providing
3monies, including the making of grants and loans, for the
4acquisition, construction, reconstruction, extension and
5improvement of the following transportation facilities and
6equipment, and for the acquisition of real property and
7interests in real property required or expected to be required
8in connection therewith as follows:
9    (a) $5,432,129,000 for State highways, arterial highways,
10freeways, roads, bridges, structures separating highways and
11railroads and roads, and bridges on roads maintained by
12counties, municipalities, townships or road districts for the
13following specific purposes:
14        (1) $3,330,000,000 for use statewide,
15        (2) $3,677,000 for use outside the Chicago urbanized
16    area,
17        (3) $7,543,000 for use within the Chicago urbanized
18    area,
19        (4) $13,060,600 for use within the City of Chicago,
20        (5) $58,987,500 for use within the counties of Cook,
21    DuPage, Kane, Lake, McHenry and Will,
22        (6) $18,860,900 for use outside the counties of Cook,
23    DuPage, Kane, Lake, McHenry and Will, and
24        (7) $2,000,000,000 for use on projects included in
25    either (i) the FY09-14 Proposed Highway Improvement
26    Program as published by the Illinois Department of

 

 

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1    Transportation in May 2008 or (ii) the FY10-15 Proposed
2    Highway Improvement Program to be published by the Illinois
3    Department of Transportation in the spring of 2009; except
4    that all projects must be maintenance projects for the
5    existing State system with the goal of reaching 90%
6    acceptable condition in the system statewide and further
7    except that all projects must reflect the generally
8    accepted historical distribution of projects throughout
9    the State.
10    (b) $4,280,070,000 $3,130,070,000 for rail facilities and
11for mass transit facilities, as defined in Section 2705-305 of
12the Department of Transportation Law (20 ILCS 2705/2705-305),
13including rapid transit, rail, bus and other equipment used in
14connection therewith by the State or any unit of local
15government, special transportation district, municipal
16corporation or other corporation or public authority
17authorized to provide and promote public transportation within
18the State or two or more of the foregoing jointly, for the
19following specific purposes:
20        (1) $3,184,270,000 $2,034,270,000 statewide,
21        (2) $83,350,000 for use within the counties of Cook,
22    DuPage, Kane, Lake, McHenry and Will,
23        (3) $12,450,000 for use outside the counties of Cook,
24    DuPage, Kane, Lake, McHenry and Will, and
25        (4) $1,000,000,000 for use on projects that shall
26    reflect the generally accepted historical distribution of

 

 

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1    projects throughout the State.
2    (c) $482,600,000 $371,600,000 for airport or aviation
3facilities and any equipment used in connection therewith,
4including engineering and land acquisition costs, by the State
5or any unit of local government, special transportation
6district, municipal corporation or other corporation or public
7authority authorized to provide public transportation within
8the State, or two or more of the foregoing acting jointly, and
9for the making of deposits into the Airport Land Loan Revolving
10Fund for loans to public airport owners pursuant to the
11Illinois Aeronautics Act.
12    (d) $2,249,000,000 $1,015,000,000 for use statewide for
13State or local highways, arterial highways, freeways, roads,
14bridges, and structures separating highways and railroads and
15roads, and for grants to counties, municipalities, townships,
16or road districts for planning, engineering, acquisition,
17construction, reconstruction, development, improvement,
18extension, and all construction-related expenses of the public
19infrastructure and other transportation improvement projects
20which are related to economic development in the State of
21Illinois.
22(Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-37,
23eff. 7-13-09.)
 
24    (30 ILCS 330/5)  (from Ch. 127, par. 655)
25    Sec. 5. School Construction.

 

 

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1    (a) The amount of $58,450,000 is authorized to make grants
2to local school districts for the acquisition, development,
3construction, reconstruction, rehabilitation, improvement,
4financing, architectural planning and installation of capital
5facilities, including but not limited to those required for
6special education building projects provided for in Article 14
7of The School Code, consisting of buildings, structures, and
8durable equipment, and for the acquisition and improvement of
9real property and interests in real property required, or
10expected to be required, in connection therewith.
11    (b) $22,550,000, or so much thereof as may be necessary,
12for grants to school districts for the making of principal and
13interest payments, required to be made, on bonds issued by such
14school districts after January 1, 1969, pursuant to any
15indenture, ordinance, resolution, agreement or contract to
16provide funds for the acquisition, development, construction,
17reconstruction, rehabilitation, improvement, architectural
18planning and installation of capital facilities consisting of
19buildings, structures, durable equipment and land for
20educational purposes or for lease payments required to be made
21by a school district for principal and interest payments on
22bonds issued by a Public Building Commission after January 1,
231969.
24    (c) $10,000,000 for grants to school districts for the
25acquisition, development, construction, reconstruction,
26rehabilitation, improvement, architectural planning and

 

 

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1installation of capital facilities consisting of buildings
2structures, durable equipment and land for special education
3building projects.
4    (d) $9,000,000 for grants to school districts for the
5reconstruction, rehabilitation, improvement, financing and
6architectural planning of capital facilities, including
7construction at another location to replace such capital
8facilities, consisting of those public school buildings and
9temporary school facilities which, prior to January 1, 1984,
10were condemned by the regional superintendent under Section
113-14.22 of The School Code or by any State official having
12jurisdiction over building safety.
13    (e) $3,050,000,000 for grants to school districts for
14school improvement projects authorized by the School
15Construction Law. The bonds shall be sold in amounts not to
16exceed the following schedule, except any bonds not sold during
17one year shall be added to the bonds to be sold during the
18remainder of the schedule:
19    First year...................................$200,000,000
20    Second year..................................$450,000,000
21    Third year...................................$500,000,000
22    Fourth year..................................$500,000,000
23    Fifth year...................................$800,000,000
24    Sixth year and thereafter....................$600,000,000
25    (f) $1,066,000,000 $420,000,000 grants to school districts
26for school implemented projects authorized by the School

 

 

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1Construction Law.
2(Source: P.A. 96-36, eff. 7-13-09.)
 
3    (30 ILCS 330/6)  (from Ch. 127, par. 656)
4    Sec. 6. Anti-Pollution.
5    (a) The amount of $422,815,000 $369,815,000 is authorized
6for allocation by the Environmental Protection Agency for
7grants or loans to units of local government in such amounts,
8at such times and for such purpose as the Agency deems
9necessary or desirable for the planning, financing, and
10construction of municipal sewage treatment works and solid
11waste disposal facilities and for making of deposits into the
12Water Revolving Fund and the U.S. Environmental Protection Fund
13to provide assistance in accordance with the provisions of
14Title IV-A of the Environmental Protection Act.
15    (b) The amount of $236,500,000 $215,500,000 is authorized
16for allocation by the Environmental Protection Agency for
17payment of claims submitted to the State and approved for
18payment under the Leaking Underground Storage Tank Program
19established in Title XVI of the Environmental Protection Act.
20(Source: P.A. 96-36, eff. 7-13-09.)
 
21    (30 ILCS 330/7)  (from Ch. 127, par. 657)
22    Sec. 7. Coal and Energy Development. The amount of
23$698,200,000 is authorized to be used by the Department of
24Commerce and Economic Opportunity (formerly Department of

 

 

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1Commerce and Community Affairs) for coal and energy development
2purposes, pursuant to Sections 2, 3 and 3.1 of the Illinois
3Coal and Energy Development Bond Act, for the purposes
4specified in Section 8.1 of the Energy Conservation and Coal
5Development Act, for the purposes specified in Section 605-332
6of the Department of Commerce and Economic Opportunity Law of
7the Civil Administrative Code of Illinois, and for the purpose
8of facility cost reports prepared pursuant to Sections 1-58 or
91-75(d)(4) of the Illinois Power Agency Act and for the purpose
10of development costs pursuant to Section 8.1 of the Energy
11Conservation and Coal Development Act. Of this amount:
12    (a) $115,000,000 is for the specific purposes of
13acquisition, development, construction, reconstruction,
14improvement, financing, architectural and technical planning
15and installation of capital facilities consisting of
16buildings, structures, durable equipment, and land for the
17purpose of capital development of coal resources within the
18State and for the purposes specified in Section 8.1 of the
19Energy Conservation and Coal Development Act;
20    (b) $35,000,000 is for the purposes specified in Section
218.1 of the Energy Conservation and Coal Development Act and
22making grants to generating stations and coal gasification
23facilities within the State of Illinois and to the owner of a
24generating station located in Illinois and having at least
25three coal-fired generating units with accredited summer
26capability greater than 500 megawatts each at such generating

 

 

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1station as provided in Section 6 of that Bond Act;
2    (c) $13,200,000 is for research, development and
3demonstration of forms of energy other than that derived from
4coal, either on or off State property;
5    (d) $500,000,000 is for the purpose of providing financial
6assistance to new electric generating facilities as provided in
7Section 605-332 of the Department of Commerce and Economic
8Opportunity Law of the Civil Administrative Code of Illinois;
9and
10    (e) $50,000,000 $35,000,000 is for the purpose of facility
11cost reports prepared for not more than one facility pursuant
12to Section 1-75(d)(4) of the Illinois Power Agency Act and not
13more than one facility pursuant to Section 1-58 of the Illinois
14Power Agency Act and for the purpose of up to $6,000,000 of
15development costs pursuant to Section 8.1 of the Energy
16Conservation and Coal Development Act.
17(Source: P.A. 95-1026, eff. 1-12-09; 96-781, eff. 8-28-09;
1896-1000, eff. 7-2-10; 96-1465, eff. 8-20-10.)
 
19    (30 ILCS 330/9)  (from Ch. 127, par. 659)
20    Sec. 9. Conditions for Issuance and Sale of Bonds -
21Requirements for Bonds.
22    (a) Except as otherwise provided in this subsection, Bonds
23shall be issued and sold from time to time, in one or more
24series, in such amounts and at such prices as may be directed
25by the Governor, upon recommendation by the Director of the

 

 

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1Governor's Office of Management and Budget. Bonds shall be in
2such form (either coupon, registered or book entry), in such
3denominations, payable within 25 years from their date, subject
4to such terms of redemption with or without premium, bear
5interest payable at such times and at such fixed or variable
6rate or rates, and be dated as shall be fixed and determined by
7the Director of the Governor's Office of Management and Budget
8in the order authorizing the issuance and sale of any series of
9Bonds, which order shall be approved by the Governor and is
10herein called a "Bond Sale Order"; provided however, that
11interest payable at fixed or variable rates shall not exceed
12that permitted in the Bond Authorization Act, as now or
13hereafter amended. Bonds shall be payable at such place or
14places, within or without the State of Illinois, and may be
15made registrable as to either principal or as to both principal
16and interest, as shall be specified in the Bond Sale Order.
17Bonds may be callable or subject to purchase and retirement or
18tender and remarketing as fixed and determined in the Bond Sale
19Order. Bonds, other than Bonds issued under Section 3 of this
20Act for the costs associated with the purchase and
21implementation of information technology, (i) except for
22refunding Bonds satisfying the requirements of Section 16 of
23this Act and sold during fiscal year 2009, 2010, or 2011, must
24be issued with principal or mandatory redemption amounts in
25equal amounts, with the first maturity issued occurring within
26the fiscal year in which the Bonds are issued or within the

 

 

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1next succeeding fiscal year and (ii) must mature or be subject
2to mandatory redemption each fiscal year thereafter up to 25
3years, except for refunding Bonds satisfying the requirements
4of Section 16 of this Act and sold during fiscal year 2009,
52010, or 2011 which must mature or be subject to mandatory
6redemption each fiscal year thereafter up to 16 years. Bonds
7issued under Section 3 of this Act for the costs associated
8with the purchase and implementation of information technology
9must be issued with principal or mandatory redemption amounts
10in equal amounts, with the first maturity issued occurring with
11the fiscal year in which the respective bonds are issued or
12with the next succeeding fiscal year, with the respective bonds
13issued maturing or subject to mandatory redemption each fiscal
14year thereafter up to 10 years. Notwithstanding any provision
15of this Act to the contrary, the Bonds authorized by Public Act
1696-43 shall be payable within 5 years from their date and must
17be issued with principal or mandatory redemption amounts in
18equal amounts, with payment of principal or mandatory
19redemption beginning in the first fiscal year following the
20fiscal year in which the Bonds are issued.
21    In the case of any series of Bonds bearing interest at a
22variable interest rate ("Variable Rate Bonds"), in lieu of
23determining the rate or rates at which such series of Variable
24Rate Bonds shall bear interest and the price or prices at which
25such Variable Rate Bonds shall be initially sold or remarketed
26(in the event of purchase and subsequent resale), the Bond Sale

 

 

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1Order may provide that such interest rates and prices may vary
2from time to time depending on criteria established in such
3Bond Sale Order, which criteria may include, without
4limitation, references to indices or variations in interest
5rates as may, in the judgment of a remarketing agent, be
6necessary to cause Variable Rate Bonds of such series to be
7remarketable from time to time at a price equal to their
8principal amount, and may provide for appointment of a bank,
9trust company, investment bank, or other financial institution
10to serve as remarketing agent in that connection. The Bond Sale
11Order may provide that alternative interest rates or provisions
12for establishing alternative interest rates, different
13security or claim priorities, or different call or amortization
14provisions will apply during such times as Variable Rate Bonds
15of any series are held by a person providing credit or
16liquidity enhancement arrangements for such Bonds as
17authorized in subsection (b) of this Section. The Bond Sale
18Order may also provide for such variable interest rates to be
19established pursuant to a process generally known as an auction
20rate process and may provide for appointment of one or more
21financial institutions to serve as auction agents and
22broker-dealers in connection with the establishment of such
23interest rates and the sale and remarketing of such Bonds.
24    (b) In connection with the issuance of any series of Bonds,
25the State may enter into arrangements to provide additional
26security and liquidity for such Bonds, including, without

 

 

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1limitation, bond or interest rate insurance or letters of
2credit, lines of credit, bond purchase contracts, or other
3arrangements whereby funds are made available to retire or
4purchase Bonds, thereby assuring the ability of owners of the
5Bonds to sell or redeem their Bonds. The State may enter into
6contracts and may agree to pay fees to persons providing such
7arrangements, but only under circumstances where the Director
8of the Governor's Office of Management and Budget certifies
9that he or she reasonably expects the total interest paid or to
10be paid on the Bonds, together with the fees for the
11arrangements (being treated as if interest), would not, taken
12together, cause the Bonds to bear interest, calculated to their
13stated maturity, at a rate in excess of the rate that the Bonds
14would bear in the absence of such arrangements.
15    The State may, with respect to Bonds issued or anticipated
16to be issued, participate in and enter into arrangements with
17respect to interest rate protection or exchange agreements,
18guarantees, or financial futures contracts for the purpose of
19limiting, reducing, or managing interest rate exposure. The
20authority granted under this paragraph, however, shall not
21increase the principal amount of Bonds authorized to be issued
22by law. The arrangements may be executed and delivered by the
23Director of the Governor's Office of Management and Budget on
24behalf of the State. Net payments for such arrangements shall
25constitute interest on the Bonds and shall be paid from the
26General Obligation Bond Retirement and Interest Fund. The

 

 

SB3087 Enrolled- 21 -LRB096 20289 RLC 35901 b

1Director of the Governor's Office of Management and Budget
2shall at least annually certify to the Governor and the State
3Comptroller his or her estimate of the amounts of such net
4payments to be included in the calculation of interest required
5to be paid by the State.
6    (c) Prior to the issuance of any Variable Rate Bonds
7pursuant to subsection (a), the Director of the Governor's
8Office of Management and Budget shall adopt an interest rate
9risk management policy providing that the amount of the State's
10variable rate exposure with respect to Bonds shall not exceed
1120%. This policy shall remain in effect while any Bonds are
12outstanding and the issuance of Bonds shall be subject to the
13terms of such policy. The terms of this policy may be amended
14from time to time by the Director of the Governor's Office of
15Management and Budget but in no event shall any amendment cause
16the permitted level of the State's variable rate exposure with
17respect to Bonds to exceed 20%.
18    (d) "Build America Bonds" in this Section means Bonds
19authorized by Section 54AA of the Internal Revenue Code of
201986, as amended ("Internal Revenue Code"), and bonds issued
21from time to time to refund or continue to refund "Build
22America Bonds".
23    (e) Notwithstanding any other provision of this Section,
24Qualified School Construction Bonds shall be issued and sold
25from time to time, in one or more series, in such amounts and
26at such prices as may be directed by the Governor, upon

 

 

SB3087 Enrolled- 22 -LRB096 20289 RLC 35901 b

1recommendation by the Director of the Governor's Office of
2Management and Budget. Qualified School Construction Bonds
3shall be in such form (either coupon, registered or book
4entry), in such denominations, payable within 25 years from
5their date, subject to such terms of redemption with or without
6premium, and if the Qualified School Construction Bonds are
7issued with a supplemental coupon, bear interest payable at
8such times and at such fixed or variable rate or rates, and be
9dated as shall be fixed and determined by the Director of the
10Governor's Office of Management and Budget in the order
11authorizing the issuance and sale of any series of Qualified
12School Construction Bonds, which order shall be approved by the
13Governor and is herein called a "Bond Sale Order"; except that
14interest payable at fixed or variable rates, if any, shall not
15exceed that permitted in the Bond Authorization Act, as now or
16hereafter amended. Qualified School Construction Bonds shall
17be payable at such place or places, within or without the State
18of Illinois, and may be made registrable as to either principal
19or as to both principal and interest, as shall be specified in
20the Bond Sale Order. Qualified School Construction Bonds may be
21callable or subject to purchase and retirement or tender and
22remarketing as fixed and determined in the Bond Sale Order.
23Qualified School Construction Bonds must be issued with
24principal or mandatory redemption amounts or sinking fund
25payments into the General Obligation Bond Retirement and
26Interest Fund (or subaccount therefor) in equal amounts, with

 

 

SB3087 Enrolled- 23 -LRB096 20289 RLC 35901 b

1the first maturity issued, mandatory redemption payment or
2sinking fund payment occurring within the fiscal year in which
3the Qualified School Construction Bonds are issued or within
4the next succeeding fiscal year, with Qualified School
5Construction Bonds issued maturing or subject to mandatory
6redemption or with sinking fund payments thereof deposited each
7fiscal year thereafter up to 25 years. Sinking fund payments
8set forth in this subsection shall be permitted only to the
9extent authorized in Section 54F of the Internal Revenue Code
10or as otherwise determined by the Director of the Governor's
11Office of Management and Budget. "Qualified School
12Construction Bonds" in this subsection means Bonds authorized
13by Section 54F of the Internal Revenue Code and for bonds
14issued from time to time to refund or continue to refund such
15"Qualified School Construction Bonds".
16    (f) Beginning with the next issuance by the Governor's
17Office of Management and Budget to the Procurement Policy Board
18of a request for quotation for the purpose of formulating a new
19pool of qualified underwriting banks list, all entities
20responding to such a request for quotation for inclusion on
21that list shall provide a written report to the Governor's
22Office of Management and Budget and the Illinois Comptroller.
23The written report submitted to the Comptroller shall (i) be
24published on the Comptroller's Internet website and (ii) be
25used by the Governor's Office of Management and Budget for the
26purposes of scoring such a request for quotation. The written

 

 

SB3087 Enrolled- 24 -LRB096 20289 RLC 35901 b

1report, at a minimum, shall:
2        (1) disclose whether, within the past 3 months,
3    pursuant to its credit default swap market-making
4    activities, the firm has entered into any State of Illinois
5    credit default swaps ("CDS");
6        (2) include, in the event of State of Illinois CDS
7    activity, disclosure of the firm's cumulative notional
8    volume of State of Illinois CDS trades and the firm's
9    outstanding gross and net notional amount of State of
10    Illinois CDS, as of the end of the current 3-month period;
11        (3) indicate, pursuant to the firm's proprietary
12    trading activities, disclosure of whether the firm, within
13    the past 3 months, has entered into any proprietary trades
14    for its own account in State of Illinois CDS;
15        (4) include, in the event of State of Illinois
16    proprietary trades, disclosure of the firm's outstanding
17    gross and net notional amount of proprietary State of
18    Illinois CDS and whether the net position is short or long
19    credit protection, as of the end of the current 3-month
20    period;
21        (5) list all time periods during the past 3 months
22    during which the firm held net long or net short State of
23    Illinois CDS proprietary credit protection positions, the
24    amount of such positions, and whether those positions were
25    net long or net short credit protection positions; and
26        (6) indicate whether, within the previous 3 months, the

 

 

SB3087 Enrolled- 25 -LRB096 20289 RLC 35901 b

1    firm released any publicly available research or marketing
2    reports that reference State of Illinois CDS and include
3    those research or marketing reports as attachments.
4    (g) All entities included on a Governor's Office of
5Management and Budget's pool of qualified underwriting banks
6list shall, as soon as possible after the effective date of
7this amendatory Act of the 96th General Assembly, but not later
8than January 21, 2011, and on a quarterly fiscal basis
9thereafter, provide a written report to the Governor's Office
10of Management and Budget and the Illinois Comptroller. The
11written reports submitted to the Comptroller shall be published
12on the Comptroller's Internet website. The written reports, at
13a minimum, shall:
14        (1) disclose whether, within the past 3 months,
15    pursuant to its credit default swap market-making
16    activities, the firm has entered into any State of Illinois
17    credit default swaps ("CDS");
18        (2) include, in the event of State of Illinois CDS
19    activity, disclosure of the firm's cumulative notional
20    volume of State of Illinois CDS trades and the firm's
21    outstanding gross and net notional amount of State of
22    Illinois CDS, as of the end of the current 3-month period;
23        (3) indicate, pursuant to the firm's proprietary
24    trading activities, disclosure of whether the firm, within
25    the past 3 months, has entered into any proprietary trades
26    for its own account in State of Illinois CDS;

 

 

SB3087 Enrolled- 26 -LRB096 20289 RLC 35901 b

1        (4) include, in the event of State of Illinois
2    proprietary trades, disclosure of the firm's outstanding
3    gross and net notional amount of proprietary State of
4    Illinois CDS and whether the net position is short or long
5    credit protection, as of the end of the current 3-month
6    period;
7        (5) list all time periods during the past 3 months
8    during which the firm held net long or net short State of
9    Illinois CDS proprietary credit protection positions, the
10    amount of such positions, and whether those positions were
11    net long or net short credit protection positions; and
12        (6) indicate whether, within the previous 3 months, the
13    firm released any publicly available research or marketing
14    reports that reference State of Illinois CDS and include
15    those research or marketing reports as attachments.
16(Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43,
17eff. 7-15-09; 96-828, eff. 12-2-09.)
 
18    Section 10. The Build Illinois Bond Act is amended by
19changing Sections 2 and 4 as follows:
 
20    (30 ILCS 425/2)  (from Ch. 127, par. 2802)
21    Sec. 2. Authorization for Bonds. The State of Illinois is
22authorized to issue, sell and provide for the retirement of
23limited obligation bonds, notes and other evidences of
24indebtedness of the State of Illinois in the total principal

 

 

SB3087 Enrolled- 27 -LRB096 20289 RLC 35901 b

1amount of $5,703,509,000 $4,615,509,000 herein called "Bonds".
2Such authorized amount of Bonds shall be reduced from time to
3time by amounts, if any, which are equal to the moneys received
4by the Department of Revenue in any fiscal year pursuant to
5Section 3-1001 of the "Illinois Vehicle Code", as amended, in
6excess of the Annual Specified Amount (as defined in Section 3
7of the "Retailers' Occupation Tax Act", as amended) and
8transferred at the end of such fiscal year from the General
9Revenue Fund to the Build Illinois Purposes Fund (now
10abolished) as provided in Section 3-1001 of said Code;
11provided, however, that no such reduction shall affect the
12validity or enforceability of any Bonds issued prior to such
13reduction. Such amount of authorized Bonds shall be exclusive
14of any refunding Bonds issued pursuant to Section 15 of this
15Act and exclusive of any Bonds issued pursuant to this Section
16which are redeemed, purchased, advance refunded, or defeased in
17accordance with paragraph (f) of Section 4 of this Act. Bonds
18shall be issued for the categories and specific purposes
19expressed in Section 4 of this Act.
20(Source: P.A. 96-36, eff. 7-13-09.)
 
21    (30 ILCS 425/4)  (from Ch. 127, par. 2804)
22    Sec. 4. Purposes of Bonds. Bonds shall be issued for the
23following purposes and in the approximate amounts as set forth
24below:
25    (a) $3,213,000,000 $2,917,000,000 for the expenses of

 

 

SB3087 Enrolled- 28 -LRB096 20289 RLC 35901 b

1issuance and sale of Bonds, including bond discounts, and for
2planning, engineering, acquisition, construction,
3reconstruction, development, improvement and extension of the
4public infrastructure in the State of Illinois, including: the
5making of loans or grants to local governments for waste
6disposal systems, water and sewer line extensions and water
7distribution and purification facilities, rail or air or water
8port improvements, gas and electric utility extensions,
9publicly owned industrial and commercial sites, buildings used
10for public administration purposes and other public
11infrastructure capital improvements; the making of loans or
12grants to units of local government for financing and
13construction of wastewater facilities, including grants to
14serve unincorporated areas; refinancing or retiring bonds
15issued between January 1, 1987 and January 1, 1990 by home rule
16municipalities, debt service on which is provided from a tax
17imposed by home rule municipalities prior to January 1, 1990 on
18the sale of food and drugs pursuant to Section 8-11-1 of the
19Home Rule Municipal Retailers' Occupation Tax Act or Section
208-11-5 of the Home Rule Municipal Service Occupation Tax Act;
21the making of deposits not to exceed $70,000,000 in the
22aggregate into the Water Pollution Control Revolving Fund to
23provide assistance in accordance with the provisions of Title
24IV-A of the Environmental Protection Act; the planning,
25engineering, acquisition, construction, reconstruction,
26alteration, expansion, extension and improvement of highways,

 

 

SB3087 Enrolled- 29 -LRB096 20289 RLC 35901 b

1bridges, structures separating highways and railroads, rest
2areas, interchanges, access roads to and from any State or
3local highway and other transportation improvement projects
4which are related to economic development activities; the
5making of loans or grants for planning, engineering,
6rehabilitation, improvement or construction of rail and
7transit facilities; the planning, engineering, acquisition,
8construction, reconstruction and improvement of watershed,
9drainage, flood control, recreation and related improvements
10and facilities, including expenses related to land and easement
11acquisition, relocation, control structures, channel work and
12clearing and appurtenant work; the making of grants for
13improvement and development of zoos and park district field
14houses and related structures; and the making of grants for
15improvement and development of Navy Pier and related
16structures.
17    (b) $541,000,000 $196,000,000 for fostering economic
18development and increased employment and the well being of the
19citizens of Illinois, including: the making of grants for
20improvement and development of McCormick Place and related
21structures; the planning and construction of a
22microelectronics research center, including the planning,
23engineering, construction, improvement, renovation and
24acquisition of buildings, equipment and related utility
25support systems; the making of loans to businesses and
26investments in small businesses; acquiring real properties for

 

 

SB3087 Enrolled- 30 -LRB096 20289 RLC 35901 b

1industrial or commercial site development; acquiring,
2rehabilitating and reconveying industrial and commercial
3properties for the purpose of expanding employment and
4encouraging private and other public sector investment in the
5economy of Illinois; the payment of expenses associated with
6siting the Superconducting Super Collider Particle Accelerator
7in Illinois and with its acquisition, construction,
8maintenance, operation, promotion and support; the making of
9loans for the planning, engineering, acquisition,
10construction, improvement and conversion of facilities and
11equipment which will foster the use of Illinois coal; the
12payment of expenses associated with the promotion,
13establishment, acquisition and operation of small business
14incubator facilities and agribusiness research facilities,
15including the lease, purchase, renovation, planning,
16engineering, construction and maintenance of buildings,
17utility support systems and equipment designated for such
18purposes and the establishment and maintenance of centralized
19support services within such facilities; and the making of
20grants or loans to units of local government for Urban
21Development Action Grant and Housing Partnership programs.
22    (c) $1,741,358,100 $1,352,358,100 for the development and
23improvement of educational, scientific, technical and
24vocational programs and facilities and the expansion of health
25and human services for all citizens of Illinois, including: the
26making of construction and improvement grants and loans to

 

 

SB3087 Enrolled- 31 -LRB096 20289 RLC 35901 b

1public libraries and library systems; the making of grants and
2loans for planning, engineering, acquisition and construction
3of a new State central library in Springfield; the planning,
4engineering, acquisition and construction of an animal and
5dairy sciences facility; the planning, engineering,
6acquisition and construction of a campus and all related
7buildings, facilities, equipment and materials for Richland
8Community College; the acquisition, rehabilitation and
9installation of equipment and materials for scientific and
10historical surveys; the making of grants or loans for
11distribution to eligible vocational education instructional
12programs for the upgrading of vocational education programs,
13school shops and laboratories, including the acquisition,
14rehabilitation and installation of technical equipment and
15materials; the making of grants or loans for distribution to
16eligible local educational agencies for the upgrading of math
17and science instructional programs, including the acquisition
18of instructional equipment and materials; miscellaneous
19capital improvements for universities and community colleges
20including the planning, engineering, construction,
21reconstruction, remodeling, improvement, repair and
22installation of capital facilities and costs of planning,
23supplies, equipment, materials, services, and all other
24required expenses; the making of grants or loans for repair,
25renovation and miscellaneous capital improvements for
26privately operated colleges and universities and community

 

 

SB3087 Enrolled- 32 -LRB096 20289 RLC 35901 b

1colleges, including the planning, engineering, acquisition,
2construction, reconstruction, remodeling, improvement, repair
3and installation of capital facilities and costs of planning,
4supplies, equipment, materials, services, and all other
5required expenses; and the making of grants or loans for
6distribution to local governments for hospital and other health
7care facilities including the planning, engineering,
8acquisition, construction, reconstruction, remodeling,
9improvement, repair and installation of capital facilities and
10costs of planning, supplies, equipment, materials, services
11and all other required expenses.
12    (d) $208,150,900 $150,150,900 for protection,
13preservation, restoration and conservation of environmental
14and natural resources, including: the making of grants to soil
15and water conservation districts for the planning and
16implementation of conservation practices and for funding
17contracts with the Soil Conservation Service for watershed
18planning; the making of grants to units of local government for
19the capital development and improvement of recreation areas,
20including planning and engineering costs, sewer projects,
21including planning and engineering costs and water projects,
22including planning and engineering costs, and for the
23acquisition of open space lands, including the acquisition of
24easements and other property interests of less than fee simple
25ownership; the acquisition and related costs and development
26and management of natural heritage lands, including natural

 

 

SB3087 Enrolled- 33 -LRB096 20289 RLC 35901 b

1areas and areas providing habitat for endangered species and
2nongame wildlife, and buffer area lands; the acquisition and
3related costs and development and management of habitat lands,
4including forest, wildlife habitat and wetlands; and the
5removal and disposition of hazardous substances, including the
6cost of project management, equipment, laboratory analysis,
7and contractual services necessary for preventative and
8corrective actions related to the preservation, restoration
9and conservation of the environment, including deposits not to
10exceed $60,000,000 in the aggregate into the Hazardous Waste
11Fund and the Brownfields Redevelopment Fund for improvements in
12accordance with the provisions of Titles V and XVII of the
13Environmental Protection Act.
14    (e) The amount specified in paragraph (a) above shall
15include an amount necessary to pay reasonable expenses of each
16issuance and sale of the Bonds, as specified in the related
17Bond Sale Order (hereinafter defined).
18    (f) Any unexpended proceeds from any sale of Bonds which
19are held in the Build Illinois Bond Fund may be used to redeem,
20purchase, advance refund, or defease any Bonds outstanding.
21(Source: P.A. 96-36, eff. 7-13-09; 96-503, eff. 8-14-09;
2296-1000, eff. 7-2-10.)
 
23    Section 15. The Illinois Pension Code is amended by
24changing Sections 1-113.14, 2-124, 14-131, 15-155, 16-158,
2518-131, and 22A-111 and by adding Section 1-113.15 as follows:
 

 

 

SB3087 Enrolled- 34 -LRB096 20289 RLC 35901 b

1    (40 ILCS 5/1-113.14)
2    Sec. 1-113.14. Investment services for retirement systems,
3pension funds, and investment boards, except those funds
4established under Articles 3 and 4.
5    (a) For the purposes of this Section, "investment services"
6means services provided by an investment adviser or a
7consultant other than qualified fund-of-fund management
8services as defined in Section 1-113.15.
9    (b) The selection and appointment of an investment adviser
10or consultant for investment services by the board of a
11retirement system, pension fund, or investment board subject to
12this Code, except those whose investments are restricted by
13Section 1-113.2, shall be made and awarded in accordance with
14this Section. All contracts for investment services shall be
15awarded by the board using a competitive process that is
16substantially similar to the process required for the
17procurement of professional and artistic services under
18Article 35 of the Illinois Procurement Code. Each board of
19trustees shall adopt a policy in accordance with this
20subsection (b) within 60 days after the effective date of this
21amendatory Act of the 96th General Assembly. The policy shall
22be posted on its web site and filed with the Illinois
23Procurement Policy Board. Exceptions to this Section are
24allowed for (i) sole source procurements, (ii) emergency
25procurements, and (iii) at the discretion of the pension fund,

 

 

SB3087 Enrolled- 35 -LRB096 20289 RLC 35901 b

1retirement system, or board of investment, contracts that are
2nonrenewable and one year or less in duration, so long as the
3contract has a value of less than $20,000. All exceptions
4granted under this Section must be published on the system's,
5fund's, or board's web site, shall name the person authorizing
6the procurement, and shall include a brief explanation of the
7reason for the exception.
8    A person, other than a trustee or an employee of a
9retirement system, pension fund, or investment board, may not
10act as a consultant or investment adviser under this Section
11unless that person is registered as an investment adviser under
12the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1,
13et seq.) or a bank, as defined in the federal Investment
14Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.).
15    (c) Investment services provided by an investment adviser
16or a consultant appointed under this Section shall be rendered
17pursuant to a written contract between the investment adviser
18or consultant and the board.
19    The contract shall include all of the following:
20        (1) Acknowledgement in writing by the investment
21    adviser or consultant that he or she is a fiduciary with
22    respect to the pension fund or retirement system.
23        (2) The description of the board's investment policy
24    and notice that the policy is subject to change.
25        (3) (i) Full disclosure of direct and indirect fees,
26    commissions, penalties, and other compensation, including

 

 

SB3087 Enrolled- 36 -LRB096 20289 RLC 35901 b

1    reimbursement for expenses, that may be paid by or on
2    behalf of the consultant in connection with the provision
3    of services to the pension fund or retirement system and
4    (ii) a requirement that the consultant update the
5    disclosure promptly after a modification of those payments
6    or an additional payment.
7        (4) A requirement that the investment adviser or
8    consultant, in conjunction with the board's staff, submit
9    periodic written reports, on at least a quarterly basis,
10    for the board's review at its regularly scheduled meetings.
11    All returns on investment shall be reported as net returns
12    after payment of all fees, commissions, and any other
13    compensation.
14        (5) Disclosure of the names and addresses of (i) the
15    consultant or investment adviser; (ii) any entity that is a
16    parent of, or owns a controlling interest in, the
17    consultant or investment adviser; (iii) any entity that is
18    a subsidiary of, or in which a controlling interest is
19    owned by, the consultant or investment adviser; (iv) any
20    persons who have an ownership or distributive income share
21    in the consultant or investment adviser that is in excess
22    of 7.5%; or (v) serves as an executive officer of the
23    consultant or investment adviser.
24        (6) A disclosure of the names and addresses of all
25    subcontractors, if applicable, and the expected amount of
26    money each will receive under the contract, including an

 

 

SB3087 Enrolled- 37 -LRB096 20289 RLC 35901 b

1    acknowledgment that the contractor must promptly make
2    notification, in writing, if at any time during the term of
3    the contract a contractor adds or changes any
4    subcontractors. For purposes of this subparagraph (6),
5    "subcontractor" does not include non-investment related
6    professionals or professionals offering services that are
7    not directly related to the investment of assets, such as
8    legal counsel, actuary, proxy-voting services, services
9    used to track compliance with legal standards, and
10    investment fund of funds where the board has no direct
11    contractual relationship with the investment advisers or
12    partnerships.
13        (7) A description of service to be performed.
14        (8) A description of the need for the service.
15        (9) A description of the plan for post-performance
16    review.
17        (10) A description of the qualifications necessary.
18        (11) The duration of the contract.
19        (12) The method for charging and measuring cost.
20    (d) Notwithstanding any other provision of law, a
21retirement system, pension fund, or investment board subject to
22this Code, except those whose investments are restricted by
23Section 1-113.2 of this Code, shall not enter into a contract
24with a consultant that exceeds 5 years in duration. No contract
25to provide consulting services may be renewed or extended. At
26the end of the term of a contract, however, the consultant is

 

 

SB3087 Enrolled- 38 -LRB096 20289 RLC 35901 b

1eligible to compete for a new contract as provided in this
2Section. No retirement system, pension fund, or investment
3board shall attempt to avoid or contravene the restrictions of
4this subsection (d) by any means.
5    (e) Within 60 days after the effective date of this
6amendatory Act of the 96th General Assembly, each investment
7adviser or consultant currently providing services or subject
8to an existing contract for the provision of services must
9disclose to the board of trustees all direct and indirect fees,
10commissions, penalties, and other compensation paid by or on
11behalf of the investment adviser or consultant in connection
12with the provision of those services and shall update that
13disclosure promptly after a modification of those payments or
14an additional payment. The person shall update the disclosure
15promptly after a modification of those payments or an
16additional payment. The disclosures required by this
17subsection (e) shall be in writing and shall include the date
18and amount of each payment and the name and address of each
19recipient of a payment.
20    (f) The retirement system, pension fund, or board of
21investment shall develop uniform documents that shall be used
22for the solicitation, review, and acceptance of all investment
23services. The form shall include the terms contained in
24subsection (c) of this Section. All such uniform documents
25shall be posted on the retirement system's, pension fund's, or
26investment board's web site.

 

 

SB3087 Enrolled- 39 -LRB096 20289 RLC 35901 b

1    (g) A description of every contract for investment services
2shall be posted in a conspicuous manner on the web site of the
3retirement system, pension fund, or investment board. The
4description must include the name of the person or entity
5awarded a contract, the total amount applicable to the
6contract, the total fees paid or to be paid, and a disclosure
7approved by the board describing the factors that contributed
8to the selection of an investment adviser or consultant.
9(Source: P.A. 96-6, eff. 4-3-09.)
 
10    (40 ILCS 5/1-113.15 new)
11    Sec. 1-113.15. Qualified fund-of-fund management services.
12    (a) As used in this Section:
13    "Qualified fund-of-fund management services" means either
14(i) the services of an investment adviser acting in its
15capacity as an investment manager of a fund-of-funds or (ii) an
16investment adviser acting in its capacity as an investment
17manager of a separate account that is invested on a
18side-by-side basis in a substantially identical manner to a
19fund-of-funds, in each case pursuant to qualified written
20agreements.
21    "Qualified written agreements" means one or more written
22contracts to which the investment adviser and the board are
23parties and includes all of the following: (i) the matters
24described in items (1), (4), (5), (7), (11), and (12) of
25subsection (c) of Section 1-113.14; (ii) a description of any

 

 

SB3087 Enrolled- 40 -LRB096 20289 RLC 35901 b

1fees, commissions, penalties, and other compensation payable,
2if any, directly by the retirement system, pension fund, or
3investment board (which shall not include any fees,
4commissions, penalties, and other compensation payable from
5the assets of the fund-of-funds or separate account); (iii) a
6description (or method of calculation) of the fees and expenses
7payable by the Fund to the investment adviser and the timing of
8the payment of the fees or expenses; and (iv) a description (or
9method of calculation) of any carried interest or other
10performance based interests, fees, or payments allocable by the
11Fund to the investment adviser or an affiliate of the
12investment adviser and the priority of distributions with
13respect to such interest.
14    (b) A description of every contract for qualified
15fund-of-fund management services must be posted in a
16conspicuous manner on the web site of the retirement system,
17pension fund, or investment board. The description must include
18the name of the fund-of-funds, the name of its investment
19adviser, the total investment commitment of the retirement
20system, pension fund, or investment board to invest in such
21fund-of-funds, and a disclosure approved by the board
22describing the factors that contributed to the investment in
23such fund-of-funds. No information that is exempt from
24inspection pursuant to Section 7 of the Freedom of Information
25Act shall be disclosed under this Section.
 

 

 

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1    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
2    Sec. 2-124. Contributions by State.
3    (a) The State shall make contributions to the System by
4appropriations of amounts which, together with the
5contributions of participants, interest earned on investments,
6and other income will meet the cost of maintaining and
7administering the System on a 90% funded basis in accordance
8with actuarial recommendations.
9    (b) The Board shall determine the amount of State
10contributions required for each fiscal year on the basis of the
11actuarial tables and other assumptions adopted by the Board and
12the prescribed rate of interest, using the formula in
13subsection (c).
14    (c) For State fiscal years 2011 through 2045, the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17sufficient to bring the total assets of the System up to 90% of
18the total actuarial liabilities of the System by the end of
19State fiscal year 2045. In making these determinations, the
20required State contribution shall be calculated each year as a
21level percentage of payroll over the years remaining to and
22including fiscal year 2045 and shall be determined under the
23projected unit credit actuarial cost method.
24    For State fiscal years 1996 through 2005, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

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1so that by State fiscal year 2011, the State is contributing at
2the rate required under this Section.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2006 is
5$4,157,000.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2007 is
8$5,220,300.
9    For each of State fiscal years 2008 through 2009, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12from the required State contribution for State fiscal year
132007, so that by State fiscal year 2011, the State is
14contributing at the rate otherwise required under this Section.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2010 is
17$10,454,000 and shall be made from the proceeds of bonds sold
18in fiscal year 2010 pursuant to Section 7.2 of the General
19Obligation Bond Act, less (i) the pro rata share of bond sale
20expenses determined by the System's share of total bond
21proceeds, (ii) any amounts received from the General Revenue
22Fund in fiscal year 2010, and (iii) any reduction in bond
23proceeds due to the issuance of discounted bonds, if
24applicable.
25    Beginning in State fiscal year 2046, the minimum State
26contribution for each fiscal year shall be the amount needed to

 

 

SB3087 Enrolled- 43 -LRB096 20289 RLC 35901 b

1maintain the total assets of the System at 90% of the total
2actuarial liabilities of the System.
3    Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 90%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15    Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter, as calculated
18under this Section and certified under Section 2-134, shall not
19exceed an amount equal to (i) the amount of the required State
20contribution that would have been calculated under this Section
21for that fiscal year if the System had not received any
22payments under subsection (d) of Section 7.2 of the General
23Obligation Bond Act, minus (ii) the portion of the State's
24total debt service payments for that fiscal year on the bonds
25issued in fiscal year 2003 for the purposes of that Section
267.2, as determined and certified by the Comptroller, that is

 

 

SB3087 Enrolled- 44 -LRB096 20289 RLC 35901 b

1the same as the System's portion of the total moneys
2distributed under subsection (d) of Section 7.2 of the General
3Obligation Bond Act. In determining this maximum for State
4fiscal years 2008 through 2010, however, the amount referred to
5in item (i) shall be increased, as a percentage of the
6applicable employee payroll, in equal increments calculated
7from the sum of the required State contribution for State
8fiscal year 2007 plus the applicable portion of the State's
9total debt service payments for fiscal year 2007 on the bonds
10issued in fiscal year 2003 for the purposes of Section 7.2 of
11the General Obligation Bond Act, so that, by State fiscal year
122011, the State is contributing at the rate otherwise required
13under this Section.
14    (d) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18    As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25    (e) For purposes of determining the required State
26contribution to the system for a particular year, the actuarial

 

 

SB3087 Enrolled- 45 -LRB096 20289 RLC 35901 b

1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
 
4    (40 ILCS 5/14-131)
5    Sec. 14-131. Contributions by State.
6    (a) The State shall make contributions to the System by
7appropriations of amounts which, together with other employer
8contributions from trust, federal, and other funds, employee
9contributions, investment income, and other income, will be
10sufficient to meet the cost of maintaining and administering
11the System on a 90% funded basis in accordance with actuarial
12recommendations.
13    For the purposes of this Section and Section 14-135.08,
14references to State contributions refer only to employer
15contributions and do not include employee contributions that
16are picked up or otherwise paid by the State or a department on
17behalf of the employee.
18    (b) The Board shall determine the total amount of State
19contributions required for each fiscal year on the basis of the
20actuarial tables and other assumptions adopted by the Board,
21using the formula in subsection (e).
22    The Board shall also determine a State contribution rate
23for each fiscal year, expressed as a percentage of payroll,
24based on the total required State contribution for that fiscal
25year (less the amount received by the System from

 

 

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1appropriations under Section 8.12 of the State Finance Act and
2Section 1 of the State Pension Funds Continuing Appropriation
3Act, if any, for the fiscal year ending on the June 30
4immediately preceding the applicable November 15 certification
5deadline), the estimated payroll (including all forms of
6compensation) for personal services rendered by eligible
7employees, and the recommendations of the actuary.
8    For the purposes of this Section and Section 14.1 of the
9State Finance Act, the term "eligible employees" includes
10employees who participate in the System, persons who may elect
11to participate in the System but have not so elected, persons
12who are serving a qualifying period that is required for
13participation, and annuitants employed by a department as
14described in subdivision (a)(1) or (a)(2) of Section 14-111.
15    (c) Contributions shall be made by the several departments
16for each pay period by warrants drawn by the State Comptroller
17against their respective funds or appropriations based upon
18vouchers stating the amount to be so contributed. These amounts
19shall be based on the full rate certified by the Board under
20Section 14-135.08 for that fiscal year. From the effective date
21of this amendatory Act of the 93rd General Assembly through the
22payment of the final payroll from fiscal year 2004
23appropriations, the several departments shall not make
24contributions for the remainder of fiscal year 2004 but shall
25instead make payments as required under subsection (a-1) of
26Section 14.1 of the State Finance Act. The several departments

 

 

SB3087 Enrolled- 47 -LRB096 20289 RLC 35901 b

1shall resume those contributions at the commencement of fiscal
2year 2005.
3    (c-1) Notwithstanding subsection (c) of this Section, for
4fiscal year 2010 only, contributions by the several departments
5are not required to be made for General Revenue Funds payrolls
6processed by the Comptroller. Payrolls paid by the several
7departments from all other State funds must continue to be
8processed pursuant to subsection (c) of this Section.
9    (c-2) For State fiscal year 2010 only, on or as soon as
10possible after the 15th day of each month the Board shall
11submit vouchers for payment of State contributions to the
12System, in a total monthly amount of one-twelfth of the fiscal
13year 2010 General Revenue Fund appropriation to the System.
14    (d) If an employee is paid from trust funds or federal
15funds, the department or other employer shall pay employer
16contributions from those funds to the System at the certified
17rate, unless the terms of the trust or the federal-State
18agreement preclude the use of the funds for that purpose, in
19which case the required employer contributions shall be paid by
20the State. From the effective date of this amendatory Act of
21the 93rd General Assembly through the payment of the final
22payroll from fiscal year 2004 appropriations, the department or
23other employer shall not pay contributions for the remainder of
24fiscal year 2004 but shall instead make payments as required
25under subsection (a-1) of Section 14.1 of the State Finance
26Act. The department or other employer shall resume payment of

 

 

SB3087 Enrolled- 48 -LRB096 20289 RLC 35901 b

1contributions at the commencement of fiscal year 2005.
2    (e) For State fiscal years 2011 through 2045, the minimum
3contribution to the System to be made by the State for each
4fiscal year shall be an amount determined by the System to be
5sufficient to bring the total assets of the System up to 90% of
6the total actuarial liabilities of the System by the end of
7State fiscal year 2045. In making these determinations, the
8required State contribution shall be calculated each year as a
9level percentage of payroll over the years remaining to and
10including fiscal year 2045 and shall be determined under the
11projected unit credit actuarial cost method.
12    For State fiscal years 1996 through 2005, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15so that by State fiscal year 2011, the State is contributing at
16the rate required under this Section; except that (i) for State
17fiscal year 1998, for all purposes of this Code and any other
18law of this State, the certified percentage of the applicable
19employee payroll shall be 5.052% for employees earning eligible
20creditable service under Section 14-110 and 6.500% for all
21other employees, notwithstanding any contrary certification
22made under Section 14-135.08 before the effective date of this
23amendatory Act of 1997, and (ii) in the following specified
24State fiscal years, the State contribution to the System shall
25not be less than the following indicated percentages of the
26applicable employee payroll, even if the indicated percentage

 

 

SB3087 Enrolled- 49 -LRB096 20289 RLC 35901 b

1will produce a State contribution in excess of the amount
2otherwise required under this subsection and subsection (a):
39.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
42002; 10.6% in FY 2003; and 10.8% in FY 2004.
5    Notwithstanding any other provision of this Article, the
6total required State contribution to the System for State
7fiscal year 2006 is $203,783,900.
8    Notwithstanding any other provision of this Article, the
9total required State contribution to the System for State
10fiscal year 2007 is $344,164,400.
11    For each of State fiscal years 2008 through 2009, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14from the required State contribution for State fiscal year
152007, so that by State fiscal year 2011, the State is
16contributing at the rate otherwise required under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State General Revenue Fund contribution for
19State fiscal year 2010 is $723,703,100 and shall be made from
20the proceeds of bonds sold in fiscal year 2010 pursuant to
21Section 7.2 of the General Obligation Bond Act, less (i) the
22pro rata share of bond sale expenses determined by the System's
23share of total bond proceeds, (ii) any amounts received from
24the General Revenue Fund in fiscal year 2010, and (iii) any
25reduction in bond proceeds due to the issuance of discounted
26bonds, if applicable.

 

 

SB3087 Enrolled- 50 -LRB096 20289 RLC 35901 b

1    Beginning in State fiscal year 2046, the minimum State
2contribution for each fiscal year shall be the amount needed to
3maintain the total assets of the System at 90% of the total
4actuarial liabilities of the System.
5    Amounts received by the System pursuant to Section 25 of
6the Budget Stabilization Act or Section 8.12 of the State
7Finance Act in any fiscal year do not reduce and do not
8constitute payment of any portion of the minimum State
9contribution required under this Article in that fiscal year.
10Such amounts shall not reduce, and shall not be included in the
11calculation of, the required State contributions under this
12Article in any future year until the System has reached a
13funding ratio of at least 90%. A reference in this Article to
14the "required State contribution" or any substantially similar
15term does not include or apply to any amounts payable to the
16System under Section 25 of the Budget Stabilization Act.
17    Notwithstanding any other provision of this Section, the
18required State contribution for State fiscal year 2005 and for
19fiscal year 2008 and each fiscal year thereafter, as calculated
20under this Section and certified under Section 14-135.08, shall
21not exceed an amount equal to (i) the amount of the required
22State contribution that would have been calculated under this
23Section for that fiscal year if the System had not received any
24payments under subsection (d) of Section 7.2 of the General
25Obligation Bond Act, minus (ii) the portion of the State's
26total debt service payments for that fiscal year on the bonds

 

 

SB3087 Enrolled- 51 -LRB096 20289 RLC 35901 b

1issued in fiscal year 2003 for the purposes of that Section
27.2, as determined and certified by the Comptroller, that is
3the same as the System's portion of the total moneys
4distributed under subsection (d) of Section 7.2 of the General
5Obligation Bond Act. In determining this maximum for State
6fiscal years 2008 through 2010, however, the amount referred to
7in item (i) shall be increased, as a percentage of the
8applicable employee payroll, in equal increments calculated
9from the sum of the required State contribution for State
10fiscal year 2007 plus the applicable portion of the State's
11total debt service payments for fiscal year 2007 on the bonds
12issued in fiscal year 2003 for the purposes of Section 7.2 of
13the General Obligation Bond Act, so that, by State fiscal year
142011, the State is contributing at the rate otherwise required
15under this Section.
16    (f) After the submission of all payments for eligible
17employees from personal services line items in fiscal year 2004
18have been made, the Comptroller shall provide to the System a
19certification of the sum of all fiscal year 2004 expenditures
20for personal services that would have been covered by payments
21to the System under this Section if the provisions of this
22amendatory Act of the 93rd General Assembly had not been
23enacted. Upon receipt of the certification, the System shall
24determine the amount due to the System based on the full rate
25certified by the Board under Section 14-135.08 for fiscal year
262004 in order to meet the State's obligation under this

 

 

SB3087 Enrolled- 52 -LRB096 20289 RLC 35901 b

1Section. The System shall compare this amount due to the amount
2received by the System in fiscal year 2004 through payments
3under this Section and under Section 6z-61 of the State Finance
4Act. If the amount due is more than the amount received, the
5difference shall be termed the "Fiscal Year 2004 Shortfall" for
6purposes of this Section, and the Fiscal Year 2004 Shortfall
7shall be satisfied under Section 1.2 of the State Pension Funds
8Continuing Appropriation Act. If the amount due is less than
9the amount received, the difference shall be termed the "Fiscal
10Year 2004 Overpayment" for purposes of this Section, and the
11Fiscal Year 2004 Overpayment shall be repaid by the System to
12the Pension Contribution Fund as soon as practicable after the
13certification.
14    (g) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18    As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25    (h) For purposes of determining the required State
26contribution to the System for a particular year, the actuarial

 

 

SB3087 Enrolled- 53 -LRB096 20289 RLC 35901 b

1value of assets shall be assumed to earn a rate of return equal
2to the System's actuarially assumed rate of return.
3    (i) After the submission of all payments for eligible
4employees from personal services line items paid from the
5General Revenue Fund in fiscal year 2010 have been made, the
6Comptroller shall provide to the System a certification of the
7sum of all fiscal year 2010 expenditures for personal services
8that would have been covered by payments to the System under
9this Section if the provisions of this amendatory Act of the
1096th General Assembly had not been enacted. Upon receipt of the
11certification, the System shall determine the amount due to the
12System based on the full rate certified by the Board under
13Section 14-135.08 for fiscal year 2010 in order to meet the
14State's obligation under this Section. The System shall compare
15this amount due to the amount received by the System in fiscal
16year 2010 through payments under this Section. If the amount
17due is more than the amount received, the difference shall be
18termed the "Fiscal Year 2010 Shortfall" for purposes of this
19Section, and the Fiscal Year 2010 Shortfall shall be satisfied
20under Section 1.2 of the State Pension Funds Continuing
21Appropriation Act. If the amount due is less than the amount
22received, the difference shall be termed the "Fiscal Year 2010
23Overpayment" for purposes of this Section, and the Fiscal Year
242010 Overpayment shall be repaid by the System to the General
25Revenue Fund as soon as practicable after the certification.
26(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45,

 

 

SB3087 Enrolled- 54 -LRB096 20289 RLC 35901 b

1eff. 7-15-09; 96-1000, eff. 7-2-10.)
 
2    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
3    Sec. 15-155. Employer contributions.
4    (a) The State of Illinois shall make contributions by
5appropriations of amounts which, together with the other
6employer contributions from trust, federal, and other funds,
7employee contributions, income from investments, and other
8income of this System, will be sufficient to meet the cost of
9maintaining and administering the System on a 90% funded basis
10in accordance with actuarial recommendations.
11    The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(a-1).
16    (a-1) For State fiscal years 2011 through 2045, the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19sufficient to bring the total assets of the System up to 90% of
20the total actuarial liabilities of the System by the end of
21State fiscal year 2045. In making these determinations, the
22required State contribution shall be calculated each year as a
23level percentage of payroll over the years remaining to and
24including fiscal year 2045 and shall be determined under the
25projected unit credit actuarial cost method.

 

 

SB3087 Enrolled- 55 -LRB096 20289 RLC 35901 b

1    For State fiscal years 1996 through 2005, the State
2contribution to the System, as a percentage of the applicable
3employee payroll, shall be increased in equal annual increments
4so that by State fiscal year 2011, the State is contributing at
5the rate required under this Section.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2006 is
8$166,641,900.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2007 is
11$252,064,100.
12    For each of State fiscal years 2008 through 2009, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15from the required State contribution for State fiscal year
162007, so that by State fiscal year 2011, the State is
17contributing at the rate otherwise required under this Section.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2010 is
20$702,514,000 and shall be made from the State Pensions Fund and
21proceeds of bonds sold in fiscal year 2010 pursuant to Section
227.2 of the General Obligation Bond Act, less (i) the pro rata
23share of bond sale expenses determined by the System's share of
24total bond proceeds, (ii) any amounts received from the General
25Revenue Fund in fiscal year 2010, (iii) any reduction in bond
26proceeds due to the issuance of discounted bonds, if

 

 

SB3087 Enrolled- 56 -LRB096 20289 RLC 35901 b

1applicable.
2    Beginning in State fiscal year 2046, the minimum State
3contribution for each fiscal year shall be the amount needed to
4maintain the total assets of the System at 90% of the total
5actuarial liabilities of the System.
6    Amounts received by the System pursuant to Section 25 of
7the Budget Stabilization Act or Section 8.12 of the State
8Finance Act in any fiscal year do not reduce and do not
9constitute payment of any portion of the minimum State
10contribution required under this Article in that fiscal year.
11Such amounts shall not reduce, and shall not be included in the
12calculation of, the required State contributions under this
13Article in any future year until the System has reached a
14funding ratio of at least 90%. A reference in this Article to
15the "required State contribution" or any substantially similar
16term does not include or apply to any amounts payable to the
17System under Section 25 of the Budget Stabilization Act.
18    Notwithstanding any other provision of this Section, the
19required State contribution for State fiscal year 2005 and for
20fiscal year 2008 and each fiscal year thereafter, as calculated
21under this Section and certified under Section 15-165, shall
22not exceed an amount equal to (i) the amount of the required
23State contribution that would have been calculated under this
24Section for that fiscal year if the System had not received any
25payments under subsection (d) of Section 7.2 of the General
26Obligation Bond Act, minus (ii) the portion of the State's

 

 

SB3087 Enrolled- 57 -LRB096 20289 RLC 35901 b

1total debt service payments for that fiscal year on the bonds
2issued in fiscal year 2003 for the purposes of that Section
37.2, as determined and certified by the Comptroller, that is
4the same as the System's portion of the total moneys
5distributed under subsection (d) of Section 7.2 of the General
6Obligation Bond Act. In determining this maximum for State
7fiscal years 2008 through 2010, however, the amount referred to
8in item (i) shall be increased, as a percentage of the
9applicable employee payroll, in equal increments calculated
10from the sum of the required State contribution for State
11fiscal year 2007 plus the applicable portion of the State's
12total debt service payments for fiscal year 2007 on the bonds
13issued in fiscal year 2003 for the purposes of Section 7.2 of
14the General Obligation Bond Act, so that, by State fiscal year
152011, the State is contributing at the rate otherwise required
16under this Section.
17    (b) If an employee is paid from trust or federal funds, the
18employer shall pay to the Board contributions from those funds
19which are sufficient to cover the accruing normal costs on
20behalf of the employee. However, universities having employees
21who are compensated out of local auxiliary funds, income funds,
22or service enterprise funds are not required to pay such
23contributions on behalf of those employees. The local auxiliary
24funds, income funds, and service enterprise funds of
25universities shall not be considered trust funds for the
26purpose of this Article, but funds of alumni associations,

 

 

SB3087 Enrolled- 58 -LRB096 20289 RLC 35901 b

1foundations, and athletic associations which are affiliated
2with the universities included as employers under this Article
3and other employers which do not receive State appropriations
4are considered to be trust funds for the purpose of this
5Article.
6    (b-1) The City of Urbana and the City of Champaign shall
7each make employer contributions to this System for their
8respective firefighter employees who participate in this
9System pursuant to subsection (h) of Section 15-107. The rate
10of contributions to be made by those municipalities shall be
11determined annually by the Board on the basis of the actuarial
12assumptions adopted by the Board and the recommendations of the
13actuary, and shall be expressed as a percentage of salary for
14each such employee. The Board shall certify the rate to the
15affected municipalities as soon as may be practical. The
16employer contributions required under this subsection shall be
17remitted by the municipality to the System at the same time and
18in the same manner as employee contributions.
19    (c) Through State fiscal year 1995: The total employer
20contribution shall be apportioned among the various funds of
21the State and other employers, whether trust, federal, or other
22funds, in accordance with actuarial procedures approved by the
23Board. State of Illinois contributions for employers receiving
24State appropriations for personal services shall be payable
25from appropriations made to the employers or to the System. The
26contributions for Class I community colleges covering earnings

 

 

SB3087 Enrolled- 59 -LRB096 20289 RLC 35901 b

1other than those paid from trust and federal funds, shall be
2payable solely from appropriations to the Illinois Community
3College Board or the System for employer contributions.
4    (d) Beginning in State fiscal year 1996, the required State
5contributions to the System shall be appropriated directly to
6the System and shall be payable through vouchers issued in
7accordance with subsection (c) of Section 15-165, except as
8provided in subsection (g).
9    (e) The State Comptroller shall draw warrants payable to
10the System upon proper certification by the System or by the
11employer in accordance with the appropriation laws and this
12Code.
13    (f) Normal costs under this Section means liability for
14pensions and other benefits which accrues to the System because
15of the credits earned for service rendered by the participants
16during the fiscal year and expenses of administering the
17System, but shall not include the principal of or any
18redemption premium or interest on any bonds issued by the Board
19or any expenses incurred or deposits required in connection
20therewith.
21    (g) If the amount of a participant's earnings for any
22academic year used to determine the final rate of earnings,
23determined on a full-time equivalent basis, exceeds the amount
24of his or her earnings with the same employer for the previous
25academic year, determined on a full-time equivalent basis, by
26more than 6%, the participant's employer shall pay to the

 

 

SB3087 Enrolled- 60 -LRB096 20289 RLC 35901 b

1System, in addition to all other payments required under this
2Section and in accordance with guidelines established by the
3System, the present value of the increase in benefits resulting
4from the portion of the increase in earnings that is in excess
5of 6%. This present value shall be computed by the System on
6the basis of the actuarial assumptions and tables used in the
7most recent actuarial valuation of the System that is available
8at the time of the computation. The System may require the
9employer to provide any pertinent information or
10documentation.
11    Whenever it determines that a payment is or may be required
12under this subsection (g), the System shall calculate the
13amount of the payment and bill the employer for that amount.
14The bill shall specify the calculations used to determine the
15amount due. If the employer disputes the amount of the bill, it
16may, within 30 days after receipt of the bill, apply to the
17System in writing for a recalculation. The application must
18specify in detail the grounds of the dispute and, if the
19employer asserts that the calculation is subject to subsection
20(h) or (i) of this Section, must include an affidavit setting
21forth and attesting to all facts within the employer's
22knowledge that are pertinent to the applicability of subsection
23(h) or (i). Upon receiving a timely application for
24recalculation, the System shall review the application and, if
25appropriate, recalculate the amount due.
26    The employer contributions required under this subsection

 

 

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1(f) may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9    (h) This subsection (h) applies only to payments made or
10salary increases given on or after June 1, 2005 but before July
111, 2011. The changes made by Public Act 94-1057 shall not
12require the System to refund any payments received before July
1331, 2006 (the effective date of Public Act 94-1057).
14    When assessing payment for any amount due under subsection
15(g), the System shall exclude earnings increases paid to
16participants under contracts or collective bargaining
17agreements entered into, amended, or renewed before June 1,
182005.
19    When assessing payment for any amount due under subsection
20(g), the System shall exclude earnings increases paid to a
21participant at a time when the participant is 10 or more years
22from retirement eligibility under Section 15-135.
23    When assessing payment for any amount due under subsection
24(g), the System shall exclude earnings increases resulting from
25overload work, including a contract for summer teaching, or
26overtime when the employer has certified to the System, and the

 

 

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1System has approved the certification, that: (i) in the case of
2overloads (A) the overload work is for the sole purpose of
3academic instruction in excess of the standard number of
4instruction hours for a full-time employee occurring during the
5academic year that the overload is paid and (B) the earnings
6increases are equal to or less than the rate of pay for
7academic instruction computed using the participant's current
8salary rate and work schedule; and (ii) in the case of
9overtime, the overtime was necessary for the educational
10mission.
11    When assessing payment for any amount due under subsection
12(g), the System shall exclude any earnings increase resulting
13from (i) a promotion for which the employee moves from one
14classification to a higher classification under the State
15Universities Civil Service System, (ii) a promotion in academic
16rank for a tenured or tenure-track faculty position, or (iii) a
17promotion that the Illinois Community College Board has
18recommended in accordance with subsection (k) of this Section.
19These earnings increases shall be excluded only if the
20promotion is to a position that has existed and been filled by
21a member for no less than one complete academic year and the
22earnings increase as a result of the promotion is an increase
23that results in an amount no greater than the average salary
24paid for other similar positions.
25    (i) When assessing payment for any amount due under
26subsection (g), the System shall exclude any salary increase

 

 

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1described in subsection (h) of this Section given on or after
2July 1, 2011 but before July 1, 2014 under a contract or
3collective bargaining agreement entered into, amended, or
4renewed on or after June 1, 2005 but before July 1, 2011.
5Notwithstanding any other provision of this Section, any
6payments made or salary increases given after June 30, 2014
7shall be used in assessing payment for any amount due under
8subsection (g) of this Section.
9    (j) The System shall prepare a report and file copies of
10the report with the Governor and the General Assembly by
11January 1, 2007 that contains all of the following information:
12        (1) The number of recalculations required by the
13    changes made to this Section by Public Act 94-1057 for each
14    employer.
15        (2) The dollar amount by which each employer's
16    contribution to the System was changed due to
17    recalculations required by Public Act 94-1057.
18        (3) The total amount the System received from each
19    employer as a result of the changes made to this Section by
20    Public Act 94-4.
21        (4) The increase in the required State contribution
22    resulting from the changes made to this Section by Public
23    Act 94-1057.
24    (k) The Illinois Community College Board shall adopt rules
25for recommending lists of promotional positions submitted to
26the Board by community colleges and for reviewing the

 

 

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1promotional lists on an annual basis. When recommending
2promotional lists, the Board shall consider the similarity of
3the positions submitted to those positions recognized for State
4universities by the State Universities Civil Service System.
5The Illinois Community College Board shall file a copy of its
6findings with the System. The System shall consider the
7findings of the Illinois Community College Board when making
8determinations under this Section. The System shall not exclude
9any earnings increases resulting from a promotion when the
10promotion was not submitted by a community college. Nothing in
11this subsection (k) shall require any community college to
12submit any information to the Community College Board.
13    (l) For purposes of determining the required State
14contribution to the System, the value of the System's assets
15shall be equal to the actuarial value of the System's assets,
16which shall be calculated as follows:
17    As of June 30, 2008, the actuarial value of the System's
18assets shall be equal to the market value of the assets as of
19that date. In determining the actuarial value of the System's
20assets for fiscal years after June 30, 2008, any actuarial
21gains or losses from investment return incurred in a fiscal
22year shall be recognized in equal annual amounts over the
235-year period following that fiscal year.
24    (m) For purposes of determining the required State
25contribution to the system for a particular year, the actuarial
26value of assets shall be assumed to earn a rate of return equal

 

 

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1to the system's actuarially assumed rate of return.
2(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
396-43, eff. 7-15-09.)
 
4    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
5    Sec. 16-158. Contributions by State and other employing
6units.
7    (a) The State shall make contributions to the System by
8means of appropriations from the Common School Fund and other
9State funds of amounts which, together with other employer
10contributions, employee contributions, investment income, and
11other income, will be sufficient to meet the cost of
12maintaining and administering the System on a 90% funded basis
13in accordance with actuarial recommendations.
14    The Board shall determine the amount of State contributions
15required for each fiscal year on the basis of the actuarial
16tables and other assumptions adopted by the Board and the
17recommendations of the actuary, using the formula in subsection
18(b-3).
19    (a-1) Annually, on or before November 15, the Board shall
20certify to the Governor the amount of the required State
21contribution for the coming fiscal year. The certification
22shall include a copy of the actuarial recommendations upon
23which it is based.
24    On or before May 1, 2004, the Board shall recalculate and
25recertify to the Governor the amount of the required State

 

 

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1contribution to the System for State fiscal year 2005, taking
2into account the amounts appropriated to and received by the
3System under subsection (d) of Section 7.2 of the General
4Obligation Bond Act.
5    On or before July 1, 2005, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2006, taking
8into account the changes in required State contributions made
9by this amendatory Act of the 94th General Assembly.
10    (b) Through State fiscal year 1995, the State contributions
11shall be paid to the System in accordance with Section 18-7 of
12the School Code.
13    (b-1) Beginning in State fiscal year 1996, on the 15th day
14of each month, or as soon thereafter as may be practicable, the
15Board shall submit vouchers for payment of State contributions
16to the System, in a total monthly amount of one-twelfth of the
17required annual State contribution certified under subsection
18(a-1). From the effective date of this amendatory Act of the
1993rd General Assembly through June 30, 2004, the Board shall
20not submit vouchers for the remainder of fiscal year 2004 in
21excess of the fiscal year 2004 certified contribution amount
22determined under this Section after taking into consideration
23the transfer to the System under subsection (a) of Section
246z-61 of the State Finance Act. These vouchers shall be paid by
25the State Comptroller and Treasurer by warrants drawn on the
26funds appropriated to the System for that fiscal year.

 

 

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1    If in any month the amount remaining unexpended from all
2other appropriations to the System for the applicable fiscal
3year (including the appropriations to the System under Section
48.12 of the State Finance Act and Section 1 of the State
5Pension Funds Continuing Appropriation Act) is less than the
6amount lawfully vouchered under this subsection, the
7difference shall be paid from the Common School Fund under the
8continuing appropriation authority provided in Section 1.1 of
9the State Pension Funds Continuing Appropriation Act.
10    (b-2) Allocations from the Common School Fund apportioned
11to school districts not coming under this System shall not be
12diminished or affected by the provisions of this Article.
13    (b-3) For State fiscal years 2011 through 2045, the minimum
14contribution to the System to be made by the State for each
15fiscal year shall be an amount determined by the System to be
16sufficient to bring the total assets of the System up to 90% of
17the total actuarial liabilities of the System by the end of
18State fiscal year 2045. In making these determinations, the
19required State contribution shall be calculated each year as a
20level percentage of payroll over the years remaining to and
21including fiscal year 2045 and shall be determined under the
22projected unit credit actuarial cost method.
23    For State fiscal years 1996 through 2005, the State
24contribution to the System, as a percentage of the applicable
25employee payroll, shall be increased in equal annual increments
26so that by State fiscal year 2011, the State is contributing at

 

 

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1the rate required under this Section; except that in the
2following specified State fiscal years, the State contribution
3to the System shall not be less than the following indicated
4percentages of the applicable employee payroll, even if the
5indicated percentage will produce a State contribution in
6excess of the amount otherwise required under this subsection
7and subsection (a), and notwithstanding any contrary
8certification made under subsection (a-1) before the effective
9date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
10in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
112003; and 13.56% in FY 2004.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2006 is
14$534,627,700.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2007 is
17$738,014,500.
18    For each of State fiscal years 2008 through 2009, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21from the required State contribution for State fiscal year
222007, so that by State fiscal year 2011, the State is
23contributing at the rate otherwise required under this Section.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2010 is
26$2,089,268,000 and shall be made from the proceeds of bonds

 

 

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1sold in fiscal year 2010 pursuant to Section 7.2 of the General
2Obligation Bond Act, less (i) the pro rata share of bond sale
3expenses determined by the System's share of total bond
4proceeds, (ii) any amounts received from the Common School Fund
5in fiscal year 2010, and (iii) any reduction in bond proceeds
6due to the issuance of discounted bonds, if applicable.
7    Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11    Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 90%. A reference in this Article to
20the "required State contribution" or any substantially similar
21term does not include or apply to any amounts payable to the
22System under Section 25 of the Budget Stabilization Act.
23    Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter, as calculated
26under this Section and certified under subsection (a-1), shall

 

 

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1not exceed an amount equal to (i) the amount of the required
2State contribution that would have been calculated under this
3Section for that fiscal year if the System had not received any
4payments under subsection (d) of Section 7.2 of the General
5Obligation Bond Act, minus (ii) the portion of the State's
6total debt service payments for that fiscal year on the bonds
7issued in fiscal year 2003 for the purposes of that Section
87.2, as determined and certified by the Comptroller, that is
9the same as the System's portion of the total moneys
10distributed under subsection (d) of Section 7.2 of the General
11Obligation Bond Act. In determining this maximum for State
12fiscal years 2008 through 2010, however, the amount referred to
13in item (i) shall be increased, as a percentage of the
14applicable employee payroll, in equal increments calculated
15from the sum of the required State contribution for State
16fiscal year 2007 plus the applicable portion of the State's
17total debt service payments for fiscal year 2007 on the bonds
18issued in fiscal year 2003 for the purposes of Section 7.2 of
19the General Obligation Bond Act, so that, by State fiscal year
202011, the State is contributing at the rate otherwise required
21under this Section.
22    (c) Payment of the required State contributions and of all
23pensions, retirement annuities, death benefits, refunds, and
24other benefits granted under or assumed by this System, and all
25expenses in connection with the administration and operation
26thereof, are obligations of the State.

 

 

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1    If members are paid from special trust or federal funds
2which are administered by the employing unit, whether school
3district or other unit, the employing unit shall pay to the
4System from such funds the full accruing retirement costs based
5upon that service, as determined by the System. Employer
6contributions, based on salary paid to members from federal
7funds, may be forwarded by the distributing agency of the State
8of Illinois to the System prior to allocation, in an amount
9determined in accordance with guidelines established by such
10agency and the System.
11    (d) Effective July 1, 1986, any employer of a teacher as
12defined in paragraph (8) of Section 16-106 shall pay the
13employer's normal cost of benefits based upon the teacher's
14service, in addition to employee contributions, as determined
15by the System. Such employer contributions shall be forwarded
16monthly in accordance with guidelines established by the
17System.
18    However, with respect to benefits granted under Section
1916-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
20of Section 16-106, the employer's contribution shall be 12%
21(rather than 20%) of the member's highest annual salary rate
22for each year of creditable service granted, and the employer
23shall also pay the required employee contribution on behalf of
24the teacher. For the purposes of Sections 16-133.4 and
2516-133.5, a teacher as defined in paragraph (8) of Section
2616-106 who is serving in that capacity while on leave of

 

 

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1absence from another employer under this Article shall not be
2considered an employee of the employer from which the teacher
3is on leave.
4    (e) Beginning July 1, 1998, every employer of a teacher
5shall pay to the System an employer contribution computed as
6follows:
7        (1) Beginning July 1, 1998 through June 30, 1999, the
8    employer contribution shall be equal to 0.3% of each
9    teacher's salary.
10        (2) Beginning July 1, 1999 and thereafter, the employer
11    contribution shall be equal to 0.58% of each teacher's
12    salary.
13The school district or other employing unit may pay these
14employer contributions out of any source of funding available
15for that purpose and shall forward the contributions to the
16System on the schedule established for the payment of member
17contributions.
18    These employer contributions are intended to offset a
19portion of the cost to the System of the increases in
20retirement benefits resulting from this amendatory Act of 1998.
21    Each employer of teachers is entitled to a credit against
22the contributions required under this subsection (e) with
23respect to salaries paid to teachers for the period January 1,
242002 through June 30, 2003, equal to the amount paid by that
25employer under subsection (a-5) of Section 6.6 of the State
26Employees Group Insurance Act of 1971 with respect to salaries

 

 

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1paid to teachers for that period.
2    The additional 1% employee contribution required under
3Section 16-152 by this amendatory Act of 1998 is the
4responsibility of the teacher and not the teacher's employer,
5unless the employer agrees, through collective bargaining or
6otherwise, to make the contribution on behalf of the teacher.
7    If an employer is required by a contract in effect on May
81, 1998 between the employer and an employee organization to
9pay, on behalf of all its full-time employees covered by this
10Article, all mandatory employee contributions required under
11this Article, then the employer shall be excused from paying
12the employer contribution required under this subsection (e)
13for the balance of the term of that contract. The employer and
14the employee organization shall jointly certify to the System
15the existence of the contractual requirement, in such form as
16the System may prescribe. This exclusion shall cease upon the
17termination, extension, or renewal of the contract at any time
18after May 1, 1998.
19    (f) If the amount of a teacher's salary for any school year
20used to determine final average salary exceeds the member's
21annual full-time salary rate with the same employer for the
22previous school year by more than 6%, the teacher's employer
23shall pay to the System, in addition to all other payments
24required under this Section and in accordance with guidelines
25established by the System, the present value of the increase in
26benefits resulting from the portion of the increase in salary

 

 

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1that is in excess of 6%. This present value shall be computed
2by the System on the basis of the actuarial assumptions and
3tables used in the most recent actuarial valuation of the
4System that is available at the time of the computation. If a
5teacher's salary for the 2005-2006 school year is used to
6determine final average salary under this subsection (f), then
7the changes made to this subsection (f) by Public Act 94-1057
8shall apply in calculating whether the increase in his or her
9salary is in excess of 6%. For the purposes of this Section,
10change in employment under Section 10-21.12 of the School Code
11on or after June 1, 2005 shall constitute a change in employer.
12The System may require the employer to provide any pertinent
13information or documentation. The changes made to this
14subsection (f) by this amendatory Act of the 94th General
15Assembly apply without regard to whether the teacher was in
16service on or after its effective date.
17    Whenever it determines that a payment is or may be required
18under this subsection, the System shall calculate the amount of
19the payment and bill the employer for that amount. The bill
20shall specify the calculations used to determine the amount
21due. If the employer disputes the amount of the bill, it may,
22within 30 days after receipt of the bill, apply to the System
23in writing for a recalculation. The application must specify in
24detail the grounds of the dispute and, if the employer asserts
25that the calculation is subject to subsection (g) or (h) of
26this Section, must include an affidavit setting forth and

 

 

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1attesting to all facts within the employer's knowledge that are
2pertinent to the applicability of that subsection. Upon
3receiving a timely application for recalculation, the System
4shall review the application and, if appropriate, recalculate
5the amount due.
6    The employer contributions required under this subsection
7(f) may be paid in the form of a lump sum within 90 days after
8receipt of the bill. If the employer contributions are not paid
9within 90 days after receipt of the bill, then interest will be
10charged at a rate equal to the System's annual actuarially
11assumed rate of return on investment compounded annually from
12the 91st day after receipt of the bill. Payments must be
13concluded within 3 years after the employer's receipt of the
14bill.
15    (g) This subsection (g) applies only to payments made or
16salary increases given on or after June 1, 2005 but before July
171, 2011. The changes made by Public Act 94-1057 shall not
18require the System to refund any payments received before July
1931, 2006 (the effective date of Public Act 94-1057).
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude salary increases paid to teachers
22under contracts or collective bargaining agreements entered
23into, amended, or renewed before June 1, 2005.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude salary increases paid to a
26teacher at a time when the teacher is 10 or more years from

 

 

SB3087 Enrolled- 76 -LRB096 20289 RLC 35901 b

1retirement eligibility under Section 16-132 or 16-133.2.
2    When assessing payment for any amount due under subsection
3(f), the System shall exclude salary increases resulting from
4overload work, including summer school, when the school
5district has certified to the System, and the System has
6approved the certification, that (i) the overload work is for
7the sole purpose of classroom instruction in excess of the
8standard number of classes for a full-time teacher in a school
9district during a school year and (ii) the salary increases are
10equal to or less than the rate of pay for classroom instruction
11computed on the teacher's current salary and work schedule.
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude a salary increase resulting from
14a promotion (i) for which the employee is required to hold a
15certificate or supervisory endorsement issued by the State
16Teacher Certification Board that is a different certification
17or supervisory endorsement than is required for the teacher's
18previous position and (ii) to a position that has existed and
19been filled by a member for no less than one complete academic
20year and the salary increase from the promotion is an increase
21that results in an amount no greater than the lesser of the
22average salary paid for other similar positions in the district
23requiring the same certification or the amount stipulated in
24the collective bargaining agreement for a similar position
25requiring the same certification.
26    When assessing payment for any amount due under subsection

 

 

SB3087 Enrolled- 77 -LRB096 20289 RLC 35901 b

1(f), the System shall exclude any payment to the teacher from
2the State of Illinois or the State Board of Education over
3which the employer does not have discretion, notwithstanding
4that the payment is included in the computation of final
5average salary.
6    (h) When assessing payment for any amount due under
7subsection (f), the System shall exclude any salary increase
8described in subsection (g) of this Section given on or after
9July 1, 2011 but before July 1, 2014 under a contract or
10collective bargaining agreement entered into, amended, or
11renewed on or after June 1, 2005 but before July 1, 2011.
12Notwithstanding any other provision of this Section, any
13payments made or salary increases given after June 30, 2014
14shall be used in assessing payment for any amount due under
15subsection (f) of this Section.
16    (i) The System shall prepare a report and file copies of
17the report with the Governor and the General Assembly by
18January 1, 2007 that contains all of the following information:
19        (1) The number of recalculations required by the
20    changes made to this Section by Public Act 94-1057 for each
21    employer.
22        (2) The dollar amount by which each employer's
23    contribution to the System was changed due to
24    recalculations required by Public Act 94-1057.
25        (3) The total amount the System received from each
26    employer as a result of the changes made to this Section by

 

 

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1    Public Act 94-4.
2        (4) The increase in the required State contribution
3    resulting from the changes made to this Section by Public
4    Act 94-1057.
5    (j) For purposes of determining the required State
6contribution to the System, the value of the System's assets
7shall be equal to the actuarial value of the System's assets,
8which shall be calculated as follows:
9    As of June 30, 2008, the actuarial value of the System's
10assets shall be equal to the market value of the assets as of
11that date. In determining the actuarial value of the System's
12assets for fiscal years after June 30, 2008, any actuarial
13gains or losses from investment return incurred in a fiscal
14year shall be recognized in equal annual amounts over the
155-year period following that fiscal year.
16    (k) For purposes of determining the required State
17contribution to the system for a particular year, the actuarial
18value of assets shall be assumed to earn a rate of return equal
19to the system's actuarially assumed rate of return.
20(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
2196-43, eff. 7-15-09.)
 
22    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
23    Sec. 18-131. Financing; employer contributions.
24    (a) The State of Illinois shall make contributions to this
25System by appropriations of the amounts which, together with

 

 

SB3087 Enrolled- 79 -LRB096 20289 RLC 35901 b

1the contributions of participants, net earnings on
2investments, and other income, will meet the costs of
3maintaining and administering this System on a 90% funded basis
4in accordance with actuarial recommendations.
5    (b) The Board shall determine the amount of State
6contributions required for each fiscal year on the basis of the
7actuarial tables and other assumptions adopted by the Board and
8the prescribed rate of interest, using the formula in
9subsection (c).
10    (c) For State fiscal years 2011 through 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2006 is

 

 

SB3087 Enrolled- 80 -LRB096 20289 RLC 35901 b

1$29,189,400.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2007 is
4$35,236,800.
5    For each of State fiscal years 2008 through 2009, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8from the required State contribution for State fiscal year
92007, so that by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2010 is
13$78,832,000 and shall be made from the proceeds of bonds sold
14in fiscal year 2010 pursuant to Section 7.2 of the General
15Obligation Bond Act, less (i) the pro rata share of bond sale
16expenses determined by the System's share of total bond
17proceeds, (ii) any amounts received from the General Revenue
18Fund in fiscal year 2010, and (iii) any reduction in bond
19proceeds due to the issuance of discounted bonds, if
20applicable.
21    Beginning in State fiscal year 2046, the minimum State
22contribution for each fiscal year shall be the amount needed to
23maintain the total assets of the System at 90% of the total
24actuarial liabilities of the System.
25    Amounts received by the System pursuant to Section 25 of
26the Budget Stabilization Act or Section 8.12 of the State

 

 

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1Finance Act in any fiscal year do not reduce and do not
2constitute payment of any portion of the minimum State
3contribution required under this Article in that fiscal year.
4Such amounts shall not reduce, and shall not be included in the
5calculation of, the required State contributions under this
6Article in any future year until the System has reached a
7funding ratio of at least 90%. A reference in this Article to
8the "required State contribution" or any substantially similar
9term does not include or apply to any amounts payable to the
10System under Section 25 of the Budget Stabilization Act.
11    Notwithstanding any other provision of this Section, the
12required State contribution for State fiscal year 2005 and for
13fiscal year 2008 and each fiscal year thereafter, as calculated
14under this Section and certified under Section 18-140, shall
15not exceed an amount equal to (i) the amount of the required
16State contribution that would have been calculated under this
17Section for that fiscal year if the System had not received any
18payments under subsection (d) of Section 7.2 of the General
19Obligation Bond Act, minus (ii) the portion of the State's
20total debt service payments for that fiscal year on the bonds
21issued in fiscal year 2003 for the purposes of that Section
227.2, as determined and certified by the Comptroller, that is
23the same as the System's portion of the total moneys
24distributed under subsection (d) of Section 7.2 of the General
25Obligation Bond Act. In determining this maximum for State
26fiscal years 2008 through 2010, however, the amount referred to

 

 

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1in item (i) shall be increased, as a percentage of the
2applicable employee payroll, in equal increments calculated
3from the sum of the required State contribution for State
4fiscal year 2007 plus the applicable portion of the State's
5total debt service payments for fiscal year 2007 on the bonds
6issued in fiscal year 2003 for the purposes of Section 7.2 of
7the General Obligation Bond Act, so that, by State fiscal year
82011, the State is contributing at the rate otherwise required
9under this Section.
10    (d) For purposes of determining the required State
11contribution to the System, the value of the System's assets
12shall be equal to the actuarial value of the System's assets,
13which shall be calculated as follows:
14    As of June 30, 2008, the actuarial value of the System's
15assets shall be equal to the market value of the assets as of
16that date. In determining the actuarial value of the System's
17assets for fiscal years after June 30, 2008, any actuarial
18gains or losses from investment return incurred in a fiscal
19year shall be recognized in equal annual amounts over the
205-year period following that fiscal year.
21    (e) For purposes of determining the required State
22contribution to the system for a particular year, the actuarial
23value of assets shall be assumed to earn a rate of return equal
24to the system's actuarially assumed rate of return.
25(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
 

 

 

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1    (40 ILCS 5/22A-111)  (from Ch. 108 1/2, par. 22A-111)
2    Sec. 22A-111. The Board shall manage the investments of any
3pension fund, retirement system, or education fund for the
4purpose of obtaining a total return on investments for the long
5term. It also shall perform such other functions as may be
6assigned or directed by the General Assembly.
7    The authority of the board to manage pension fund
8investments and the liability shall begin when there has been a
9physical transfer of the pension fund investments to the board
10and placed in the custody of the State Treasurer.
11    The authority of the board to manage monies from the
12education fund for investment and the liability of the board
13shall begin when there has been a physical transfer of
14education fund investments to the board and placed in the
15custody of the State Treasurer.
16    The board may not delegate its management functions, but it
17may, but is not required to, arrange to compensate for
18personalized investment advisory service for any or all
19investments under its control, with any national or state bank
20or trust company authorized to do a trust business and
21domiciled in Illinois, or other financial institution
22organized under the laws of Illinois, or an investment advisor
23who is qualified under Federal Investment Advisors Act of 1940
24and is registered under the Illinois Securities Law of 1953.
25Nothing contained herein shall prevent the Board from
26subscribing to general investment research services available

 

 

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1for purchase or use by others. The Board shall also have the
2authority to compensate for accounting services.
3    This Section shall not be construed to prohibit the
4Illinois State Board of Investment from directly investing
5pension assets in public market investments, private
6investments, real estate investments, or other investments
7authorized by this Code.
8(Source: P.A. 84-1127.)
 
9    Section 20. The School Construction Law is amended by
10adding Section 5-38 as follows:
 
11    (105 ILCS 230/5-38 new)
12    Sec. 5-38. Fiscal Year 2002 escalation. If a school
13district has been issued a school construction grant in Fiscal
14Year 2010 and the school district was on the FY2002 priority
15ranking, the Capital Development Board shall escalate the state
16share grant amount of the project on a 3% annual escalation
17rate.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.