Rep. Elaine Nekritz

Filed: 1/7/2013

 

 


 

 


 
09700SB1673ham010LRB097 07605 JDS 73130 a

1
AMENDMENT TO SENATE BILL 1673

2    AMENDMENT NO. ______. Amend Senate Bill 1673 by replacing
3everything after the enacting clause with the following:
 
4    "Section 3. The Illinois Public Labor Relations Act is
5amended by changing Sections 4 and 15 as follows:
 
6    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
7    Sec. 4. Management Rights. Employers shall not be required
8to bargain over matters of inherent managerial policy, which
9shall include such areas of discretion or policy as the
10functions of the employer, standards of services, its overall
11budget, the organizational structure and selection of new
12employees, examination techniques and direction of employees.
13Employers, however, shall be required to bargain collectively
14with regard to policy matters directly affecting wages, hours
15and terms and conditions of employment as well as the impact
16thereon upon request by employee representatives, but

 

 

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1excluding the changes, the impact of changes, and the
2implementation of the changes set forth in this amendatory Act
3of the 97th General Assembly.
4    To preserve the rights of employers and exclusive
5representatives which have established collective bargaining
6relationships or negotiated collective bargaining agreements
7prior to the effective date of this Act, employers shall be
8required to bargain collectively with regard to any matter
9concerning wages, hours or conditions of employment about which
10they have bargained for and agreed to in a collective
11bargaining agreement prior to the effective date of this Act,
12but excluding the changes, the impact of changes, and the
13implementation of the changes set forth in this amendatory Act
14of the 97th General Assembly.
15    The chief judge of the judicial circuit that employs a
16public employee who is a court reporter, as defined in the
17Court Reporters Act, has the authority to hire, appoint,
18promote, evaluate, discipline, and discharge court reporters
19within that judicial circuit.
20    Nothing in this amendatory Act of the 94th General Assembly
21shall be construed to intrude upon the judicial functions of
22any court. This amendatory Act of the 94th General Assembly
23applies only to nonjudicial administrative matters relating to
24the collective bargaining rights of court reporters.
25(Source: P.A. 94-98, eff. 7-1-05.)
 

 

 

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1    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
2    Sec. 15. Act Takes Precedence.
3    (a) In case of any conflict between the provisions of this
4Act and any other law (other than Section 5 of the State
5Employees Group Insurance Act of 1971 and other than the
6changes made to the Illinois Pension Code by Public Act 96-889
7and the changes, impact of changes, and the implementation of
8the changes made to the Illinois Pension Code by this
9amendatory Act of the 97th 96th General Assembly), executive
10order or administrative regulation relating to wages, hours and
11conditions of employment and employment relations, the
12provisions of this Act or any collective bargaining agreement
13negotiated thereunder shall prevail and control. Nothing in
14this Act shall be construed to replace or diminish the rights
15of employees established by Sections 28 and 28a of the
16Metropolitan Transit Authority Act, Sections 2.15 through 2.19
17of the Regional Transportation Authority Act. The provisions of
18this Act are subject to the changes made by this amendatory Act
19of the 97th General Assembly and Section 5 of the State
20Employees Group Insurance Act of 1971. Nothing in this Act
21shall be construed to replace the necessity of complaints
22against a sworn peace officer, as defined in Section 2(a) of
23the Uniform Peace Officer Disciplinary Act, from having a
24complaint supported by a sworn affidavit.
25    (b) Except as provided in subsection (a) above, any
26collective bargaining contract between a public employer and a

 

 

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1labor organization executed pursuant to this Act shall
2supersede any contrary statutes, charters, ordinances, rules
3or regulations relating to wages, hours and conditions of
4employment and employment relations adopted by the public
5employer or its agents. Any collective bargaining agreement
6entered into prior to the effective date of this Act shall
7remain in full force during its duration.
8    (c) It is the public policy of this State, pursuant to
9paragraphs (h) and (i) of Section 6 of Article VII of the
10Illinois Constitution, that the provisions of this Act are the
11exclusive exercise by the State of powers and functions which
12might otherwise be exercised by home rule units. Such powers
13and functions may not be exercised concurrently, either
14directly or indirectly, by any unit of local government,
15including any home rule unit, except as otherwise authorized by
16this Act.
17(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
18    Section 5. The Governor's Office of Management and Budget
19Act is amended by changing Sections 7 and 8 as follows:
 
20    (20 ILCS 3005/7)  (from Ch. 127, par. 417)
21    Sec. 7. All statements and estimates of expenditures
22submitted to the Office in connection with the preparation of a
23State budget, and any other estimates of expenditures,
24supporting requests for appropriations, shall be formulated

 

 

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1according to the various functions and activities for which the
2respective department, office or institution of the State
3government (including the elective officers in the executive
4department and including the University of Illinois and the
5judicial department) is responsible. All such statements and
6estimates of expenditures relating to a particular function or
7activity shall be further formulated or subject to analysis in
8accordance with the following classification of objects:
9    (1) Personal services
10    (2) State contribution for employee group insurance
11    (3) Contractual services
12    (4) Travel
13    (5) Commodities
14    (6) Equipment
15    (7) Permanent improvements
16    (8) Land
17    (9) Electronic Data Processing
18    (10) Telecommunication services
19    (11) Operation of Automotive Equipment
20    (12) Contingencies
21    (13) Reserve
22    (14) Interest
23    (15) Awards and Grants
24    (16) Debt Retirement
25    (17) Non-cost Charges.
26    (18) State retirement contribution for annual normal cost

 

 

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1    (19) State retirement contribution for unfunded accrued
2liability.
3(Source: P.A. 93-25, eff. 6-20-03.)
 
4    (20 ILCS 3005/8)  (from Ch. 127, par. 418)
5    Sec. 8. When used in connection with a State budget or
6expenditure or estimate, items (1) through (16) in the
7classification of objects stated in Section 7 shall have the
8meanings ascribed to those items in Sections 14 through 24.7,
9respectively, of the State Finance Act. "An Act in relation to
10State finance", approved June 10, 1919, as amended.
11    When used in connection with a State budget or expenditure
12or estimate, items (18) and (19) in the classification of
13objects stated in Section 7 shall have the meanings ascribed to
14those items in Sections 24.12 and 24.13, respectively, of the
15State Finance Act.
16(Source: P.A. 82-325.)
 
17    Section 10. The State Finance Act is amended by changing
18Section 13 and by adding Sections 24.12 and 24.13 as follows:
 
19    (30 ILCS 105/13)  (from Ch. 127, par. 149)
20    Sec. 13. The objects and purposes for which appropriations
21are made are classified and standardized by items as follows:
22    (1) Personal services;
23    (2) State contribution for employee group insurance;

 

 

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1    (3) Contractual services;
2    (4) Travel;
3    (5) Commodities;
4    (6) Equipment;
5    (7) Permanent improvements;
6    (8) Land;
7    (9) Electronic Data Processing;
8    (10) Operation of automotive equipment;
9    (11) Telecommunications services;
10    (12) Contingencies;
11    (13) Reserve;
12    (14) Interest;
13    (15) Awards and Grants;
14    (16) Debt Retirement;
15    (17) Non-Cost Charges;
16    (18) State retirement contribution for annual normal cost;
17    (19) State retirement contribution for unfunded accrued
18liability;
19    (20) (18) Purchase Contract for Real Estate.
20    When an appropriation is made to an officer, department,
21institution, board, commission or other agency, or to a private
22association or corporation, in one or more of the items above
23specified, such appropriation shall be construed in accordance
24with the definitions and limitations specified in this Act,
25unless the appropriation act otherwise provides.
26    An appropriation for a purpose other than one specified and

 

 

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1defined in this Act may be made only as an additional, separate
2and distinct item, specifically stating the object and purpose
3thereof.
4(Source: P.A. 84-263; 84-264.)
 
5    (30 ILCS 105/24.12 new)
6    Sec. 24.12. "State retirement contribution for annual
7normal cost" defined. The term "State retirement contribution
8for annual normal cost" means the portion of the total required
9State contribution to a retirement system for a fiscal year
10that represents the State's portion of the System's projected
11normal cost for that fiscal year, as determined and certified
12by the board of trustees of the retirement system in
13conformance with the applicable provisions of the Illinois
14Pension Code.
 
15    (30 ILCS 105/24.13 new)
16    Sec. 24.13. "State retirement contribution for unfunded
17accrued liability" defined. The term "State retirement
18contribution for unfunded accrued liability" means the portion
19of the total required State contribution to a retirement system
20for a fiscal year that is not included in the State retirement
21contribution for annual normal cost.
 
22    Section 15. The Budget Stabilization Act is amended by
23changing Sections 20 and 25 as follows:
 

 

 

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1    (30 ILCS 122/20)
2    Sec. 20. Pension Stabilization Fund.
3    (a) The Pension Stabilization Fund is hereby created as a
4special fund in the State treasury. Moneys in the fund shall be
5used for the sole purpose of making payments to the designated
6retirement systems as provided in Section 25.
7    (b) For each fiscal year when the General Assembly's
8appropriations and transfers or diversions as required by law
9from general funds do not exceed 99% of the estimated general
10funds revenues pursuant to subsection (a) of Section 10, the
11Comptroller shall transfer from the General Revenue Fund as
12provided by this Section a total amount equal to 0.5% of the
13estimated general funds revenues to the Pension Stabilization
14Fund.
15    (c) For each fiscal year through State fiscal year 2013,
16when the General Assembly's appropriations and transfers or
17diversions as required by law from general funds do not exceed
1898% of the estimated general funds revenues pursuant to
19subsection (b) of Section 10, the Comptroller shall transfer
20from the General Revenue Fund as provided by this Section a
21total amount equal to 1.0% of the estimated general funds
22revenues to the Pension Stabilization Fund.
23    (c-10) In State fiscal year 2020 and each fiscal year
24thereafter, the State Comptroller shall order transferred and
25the State Treasurer shall transfer $1,000,000,000 from the

 

 

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1General Revenue Fund to the Pension Stabilization Fund.
2    (c-15) The transfers made pursuant to subsection (c-10) of
3this Section shall continue through State fiscal year 2045 or
4until each of the designated retirement systems, as defined in
5Section 25, has achieved the funding ratio prescribed by law
6for that retirement system, whichever occurs first; provided
7that those transfers shall not be made after any provision of
8this Act that is designated as inseverable in Section 97 of
9this Act is declared to be unconstitutional or invalid other
10than as applied.
11    (d) The Comptroller shall transfer 1/12 of the total amount
12to be transferred each fiscal year under this Section into the
13Pension Stabilization Fund on the first day of each month of
14that fiscal year or as soon thereafter as possible; except that
15the final transfer of the fiscal year shall be made as soon as
16practical after the August 31 following the end of the fiscal
17year.
18    Until State fiscal year 2014, before Before the final
19transfer for a fiscal year is made, the Comptroller shall
20reconcile the estimated general funds revenues used in
21calculating the other transfers under this Section for that
22fiscal year with the actual general funds revenues for that
23fiscal year. The final transfer for the fiscal year shall be
24adjusted so that the total amount transferred under this
25Section for that fiscal year is equal to the percentage
26specified in subsection (b) or (c) of this Section, whichever

 

 

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1is applicable, of the actual general funds revenues for that
2fiscal year. The actual general funds revenues for the fiscal
3year shall be calculated in a manner consistent with subsection
4(c) of Section 10 of this Act.
5(Source: P.A. 94-839, eff. 6-6-06.)
 
6    (30 ILCS 122/25)
7    Sec. 25. Transfers from the Pension Stabilization Fund.
8    (a) As used in this Section, "designated retirement
9systems" means:
10        (1) the State Employees' Retirement System of
11    Illinois;
12        (2) the Teachers' Retirement System of the State of
13    Illinois;
14        (3) the State Universities Retirement System;
15        (4) the Judges Retirement System of Illinois; and
16        (5) the General Assembly Retirement System.
17    (b) As soon as may be practical after any money is
18deposited into the Pension Stabilization Fund, the State
19Comptroller shall apportion the deposited amount among the
20designated retirement systems and the State Comptroller and
21State Treasurer shall pay the apportioned amounts to the
22designated retirement systems. The amount deposited shall be
23apportioned among the designated retirement systems in the same
24proportion as their respective portions of the total actuarial
25reserve deficiency of the designated retirement systems, as

 

 

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1most recently determined by the Governor's Office of Management
2and Budget. Amounts received by a designated retirement system
3under this Section shall be used for funding the unfunded
4liabilities of the retirement system. Payments under this
5Section are authorized by the continuing appropriation under
6Section 1.7 of the State Pension Funds Continuing Appropriation
7Act.
8    (c) At the request of the State Comptroller, the Governor's
9Office of Management and Budget shall determine the individual
10and total actuarial reserve deficiencies of the designated
11retirement systems. For this purpose, the Governor's Office of
12Management and Budget shall consider the latest available audit
13and actuarial reports of each of the retirement systems and the
14relevant reports and statistics of the Public Pension Division
15of the Department of Financial and Professional Regulation.
16    (d) Payments to the designated retirement systems under
17this Section shall be in addition to, and not in lieu of, any
18State contributions required under Section 2-124, 14-131,
1915-155, 16-158, or 18-131 of the Illinois Pension Code.
20    Payments to the designated retirement systems under this
21Section, transferred after the effective date of this
22amendatory Act of the 97th General Assembly, do not reduce and
23do not constitute payment of any portion of the required State
24contribution under Article 2, 14, 15, 16, or 18 of the Illinois
25Pension Code in that fiscal year. Such amounts shall not
26reduce, and shall not be included in the calculation of, the

 

 

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1required State Contribution under Article 2, 14, 15, 16, or 18
2of the Illinois Pension Code in any future year, until the
3designated retirement system has received payment of
4contributions pursuant to this Act.
5(Source: P.A. 94-839, eff. 6-6-06.)
 
6    Section 20. The Illinois Pension Code is amended by
7changing Sections 1-103.3, 2-108, 2-119.1, 2-121.1, 2-124,
82-125, 2-126, 2-134, 2-162, 7-109, 14-103.10, 14-106, 14-114,
914-131, 14-132, 14-133, 14-135.08, 14-152.1, 15-106, 15-107,
1015-111, 15-113.2, 15-136, 15-155, 15-156, 15-157, 15-165,
1115-198, 16-106, 16-121, 16-127, 16-133, 16-133.1, 16-152,
1216-158, 16-203, and 18-131 and by adding Sections 2-105.1,
132-105.2, 14-103.40, 14-103.41, 15-107.1, 15-107.2, 16-106.4,
1416-106.5, and 16-158.2 as follows:
 
15    (40 ILCS 5/1-103.3)
16    Sec. 1-103.3. Application of 1994 amendment; funding
17standard.
18    (a) The provisions of Public Act 88-593 this amendatory Act
19of 1994 that change the method of calculating, certifying, and
20paying the required State contributions to the retirement
21systems established under Articles 2, 14, 15, 16, and 18 shall
22first apply to the State contributions required for State
23fiscal year 1996.
24    (b) (Blank) The General Assembly declares that a funding

 

 

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1ratio (the ratio of a retirement system's total assets to its
2total actuarial liabilities) of 90% is an appropriate goal for
3State-funded retirement systems in Illinois, and it finds that
4a funding ratio of 90% is now the generally-recognized norm
5throughout the nation for public employee retirement systems
6that are considered to be financially secure and funded in an
7appropriate and responsible manner.
8    (c) Every 5 years, beginning in 1999, the Commission on
9Government Forecasting and Accountability, in consultation
10with the affected retirement systems and the Governor's Office
11of Management and Budget (formerly Bureau of the Budget), shall
12consider and determine whether the funding goals 90% funding
13ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
14continue subsection (b) continues to represent an appropriate
15funding goals goal for those State-funded retirement systems in
16Illinois, and it shall report its findings and recommendations
17on this subject to the Governor and the General Assembly.
18(Source: P.A. 93-1067, eff. 1-15-05.)
 
19    (40 ILCS 5/2-105.1 new)
20    Sec. 2-105.1. Tier I participant."Tier I participant": A
21participant who first became a participant before January 1,
222011.
 
23    (40 ILCS 5/2-105.2 new)
24    Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a

 

 

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1former Tier I participant who is receiving a retirement
2annuity.
 
3    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
4    Sec. 2-108. Salary. "Salary": (1) For members of the
5General Assembly, the total compensation paid to the member by
6the State for one year of service, including the additional
7amounts, if any, paid to the member as an officer pursuant to
8Section 1 of "An Act in relation to the compensation and
9emoluments of the members of the General Assembly", approved
10December 6, 1907, as now or hereafter amended.
11    (2) For the State executive officers specified in Section
122-105, the total compensation paid to the member for one year
13of service.
14    (3) For members of the System who are participants under
15Section 2-117.1, or who are serving as Clerk or Assistant Clerk
16of the House of Representatives or Secretary or Assistant
17Secretary of the Senate, the total compensation paid to the
18member for one year of service, but not to exceed the salary of
19the highest salaried officer of the General Assembly.
20    However, in the event that federal law results in any
21participant receiving imputed income based on the value of
22group term life insurance provided by the State, such imputed
23income shall not be included in salary for the purposes of this
24Article.
25    Notwithstanding any other provision of this Code, the

 

 

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1salary of a Tier I participant for the purposes of this Code
2shall not exceed, for periods of service in a term of office
3beginning on or after the effective date of this amendatory Act
4of the 97th General Assembly, the greater of (i) the annual
5contribution and benefit base established for the applicable
6year by the Commissioner of Social Security under the federal
7Social Security Act or (ii) the annual salary of the
8participant during the 365 days immediately preceding the
9effective date of this Section.
10(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
11    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
12    Sec. 2-119.1. Automatic increase in retirement annuity.
13    (a) Except as provided in subsections (a-1) and (a-2), a A
14participant who retires after June 30, 1967, and who has not
15received an initial increase under this Section before the
16effective date of this amendatory Act of 1991, shall, in
17January or July next following the first anniversary of
18retirement, whichever occurs first, and in the same month of
19each year thereafter, but in no event prior to age 60, have the
20amount of the originally granted retirement annuity increased
21as follows: for each year through 1971, 1 1/2%; for each year
22from 1972 through 1979, 2%; and for 1980 and each year
23thereafter, 3%. Annuitants who have received an initial
24increase under this subsection prior to the effective date of
25this amendatory Act of 1991 shall continue to receive their

 

 

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1annual increases in the same month as the initial increase.
2    (a-1) Notwithstanding any other provision of this Article,
3for a Tier I retiree, the amount of each automatic increase in
4retirement annuity occurring on or after the effective date of
5this amendatory Act of the 97th General Assembly shall be the
6lesser of (i) $750 or (ii) 3% of the total annuity payable at
7the time of the increase, including previous increases granted.
8    (a-2) Notwithstanding any other provision of this Article,
9the System shall not grant any new or additional automatic
10increase in retirement annuity to a Tier I retiree on or after
11the effective date of this amendatory Act of the 97th General
12Assembly and before January 1, 2020.
13    Notwithstanding any other provision of this Article, the
14System shall not grant any new or additional automatic increase
15in retirement annuity to a Tier I retiree who has not yet
16attained the age of 67, regardless of any age augmentation
17granted under this Article as an early retirement incentive.
18    If on the effective date of this amendatory Act of the 97th
19General Assembly a Tier I retiree has already received an
20annual increase under this Section but does not yet meet the
21new eligibility requirements of this subsection, the annual
22increases already received shall continue in force, but no
23additional annual increase shall be granted until the Tier I
24retiree meets the new eligibility requirements.
25    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
26and (a-2) apply without regard to whether or not the Tier I

 

 

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1retiree is in active service under this Article on or after the
2effective date of this amendatory Act of the 97th General
3Assembly.
4    (b) Beginning January 1, 1990, for eligible participants
5who remain in service after attaining 20 years of creditable
6service, the 3% increases provided under subsection (a) shall
7begin to accrue on the January 1 next following the date upon
8which the participant (1) attains age 55, or (2) attains 20
9years of creditable service, whichever occurs later, and shall
10continue to accrue while the participant remains in service;
11such increases shall become payable on January 1 or July 1,
12whichever occurs first, next following the first anniversary of
13retirement. For any person who has service credit in the System
14for the entire period from January 15, 1969 through December
1531, 1992, regardless of the date of termination of service, the
16reference to age 55 in clause (1) of this subsection (b) shall
17be deemed to mean age 50.
18    This subsection (b) does not apply to any person who first
19becomes a member of the System after August 8, 2003 (the
20effective date of Public Act 93-494) this amendatory Act of the
2193rd General Assembly.
22    (b-5) Notwithstanding any other provision of this Article,
23a participant who first becomes a participant on or after
24January 1, 2011 (the effective date of Public Act 96-889)
25shall, in January or July next following the first anniversary
26of retirement, whichever occurs first, and in the same month of

 

 

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1each year thereafter, but in no event prior to age 67, have the
2amount of the originally granted retirement annuity then being
3paid increased by 3% or one-half the annual unadjusted
4percentage increase in the Consumer Price Index for All Urban
5Consumers as determined by the Public Pension Division of the
6Department of Insurance under subsection (a) of Section
72-108.1, whichever is less. The changes made to this subsection
8by this amendatory Act of the 97th General Assembly do not
9apply to any automatic annual increase granted under this
10subsection before the effective date of this amendatory Act.
11    (c) The foregoing provisions relating to automatic
12increases are not applicable to a participant who retires
13before having made contributions (at the rate prescribed in
14Section 2-126) for automatic increases for less than the
15equivalent of one full year. However, in order to be eligible
16for the automatic increases, such a participant may make
17arrangements to pay to the system the amount required to bring
18the total contributions for the automatic increase to the
19equivalent of one year's contributions based upon his or her
20last salary.
21    (d) A participant who terminated service prior to July 1,
221967, with at least 14 years of service is entitled to an
23increase in retirement annuity beginning January, 1976, and to
24additional increases in January of each year thereafter.
25    The initial increase shall be 1 1/2% of the originally
26granted retirement annuity multiplied by the number of full

 

 

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1years that the annuitant was in receipt of such annuity prior
2to January 1, 1972, plus 2% of the originally granted
3retirement annuity for each year after that date. The
4subsequent annual increases shall be at the rate of 2% of the
5originally granted retirement annuity for each year through
61979 and at the rate of 3% for 1980 and thereafter.
7    (e) Beginning January 1, 1990, all automatic annual
8increases payable under this Section shall be calculated as a
9percentage of the total annuity payable at the time of the
10increase, including previous increases granted under this
11Article.
12(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
13    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
14    Sec. 2-121.1. Survivor's annuity - amount.
15    (a) A surviving spouse shall be entitled to 66 2/3% of the
16amount of retirement annuity to which the participant or
17annuitant was entitled on the date of death, without regard to
18whether the participant had attained age 55 prior to his or her
19death, subject to a minimum payment of 10% of salary. If a
20surviving spouse, regardless of age, has in his or her care at
21the date of death any eligible child or children of the
22participant, the survivor's annuity shall be the greater of the
23following: (1) 66 2/3% of the amount of retirement annuity to
24which the participant or annuitant was entitled on the date of
25death, or (2) 30% of the participant's salary increased by 10%

 

 

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1of salary on account of each such child, subject to a total
2payment for the surviving spouse and children of 50% of salary.
3If eligible children survive but there is no surviving spouse,
4or if the surviving spouse dies or becomes disqualified by
5remarriage while eligible children survive, each eligible
6child shall be entitled to an annuity of 20% of salary, subject
7to a maximum total payment for all such children of 50% of
8salary.
9    However, the survivor's annuity payable under this Section
10shall not be less than 100% of the amount of retirement annuity
11to which the participant or annuitant was entitled on the date
12of death, if he or she is survived by a dependent disabled
13child.
14    The salary to be used for determining these benefits shall
15be the salary used for determining the amount of retirement
16annuity as provided in Section 2-119.01.
17    (b) Upon the death of a participant after the termination
18of service or upon death of an annuitant, the maximum total
19payment to a surviving spouse and eligible children, or to
20eligible children alone if there is no surviving spouse, shall
21be 75% of the retirement annuity to which the participant or
22annuitant was entitled, unless there is a dependent disabled
23child among the survivors.
24    (c) When a child ceases to be an eligible child, the
25annuity to that child, or to the surviving spouse on account of
26that child, shall thereupon cease, and the annuity payable to

 

 

09700SB1673ham010- 22 -LRB097 07605 JDS 73130 a

1the surviving spouse or other eligible children shall be
2recalculated if necessary.
3    Upon the ineligibility of the last eligible child, the
4annuity shall immediately revert to the amount payable upon
5death of a participant or annuitant who leaves no eligible
6children. If the surviving spouse is then under age 50, the
7annuity as revised shall be deferred until the attainment of
8age 50.
9    (d) Beginning January 1, 1990, every survivor's annuity
10shall be increased (1) on each January 1 occurring on or after
11the commencement of the annuity if the deceased member died
12while receiving a retirement annuity, or (2) in other cases, on
13each January 1 occurring on or after the first anniversary of
14the commencement of the annuity, by an amount equal to 3% of
15the current amount of the annuity, including any previous
16increases under this Article. Such increases shall apply
17without regard to whether the deceased member was in service on
18or after the effective date of this amendatory Act of 1991, but
19shall not accrue for any period prior to January 1, 1990.
20    (d-5) Notwithstanding any other provision of this Article,
21the initial survivor's annuity of a survivor of a participant
22who first becomes a participant on or after January 1, 2011
23(the effective date of Public Act 96-889) shall be in the
24amount of 66 2/3% of the amount of the retirement annuity to
25which the participant or annuitant was entitled on the date of
26death and shall be increased (1) on each January 1 occurring on

 

 

09700SB1673ham010- 23 -LRB097 07605 JDS 73130 a

1or after the commencement of the annuity if the deceased member
2died while receiving a retirement annuity or (2) in other
3cases, on each January 1 occurring on or after the first
4anniversary of the commencement of the annuity, by an amount
5equal to 3% or one-half the annual unadjusted percentage
6increase in the Consumer Price Index for All Urban Consumers as
7determined by the Public Pension Division of the Department of
8Insurance under subsection (a) of Section 2-108.1, whichever is
9less, of the originally granted survivor's annuity then being
10paid. The changes made to this subsection by this amendatory
11Act of the 97th General Assembly do not apply to any automatic
12annual increase granted under this subsection before the
13effective date of this amendatory Act.
14    (e) Notwithstanding any other provision of this Article,
15beginning January 1, 1990, the minimum survivor's annuity
16payable to any person who is entitled to receive a survivor's
17annuity under this Article shall be $300 per month, without
18regard to whether or not the deceased participant was in
19service on the effective date of this amendatory Act of 1989.
20    (f) In the case of a proportional survivor's annuity
21arising under the Retirement Systems Reciprocal Act where the
22amount payable by the System on January 1, 1993 is less than
23$300 per month, the amount payable by the System shall be
24increased beginning on that date by a monthly amount equal to
25$2 for each full year that has expired since the annuity began.
26(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 

 

 

09700SB1673ham010- 24 -LRB097 07605 JDS 73130 a

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 100% 90% funded basis in
8accordance with actuarial recommendations by the end of State
9fiscal year 2043.
10    (b) The Board shall determine the amount of State
11contributions required for each fiscal year on the basis of the
12actuarial tables and other assumptions adopted by the Board and
13the prescribed rate of interest, using the formula in
14subsection (c).
15    (c) For State fiscal years 2014 through 2043, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18equal to the sum of (1) the State's portion of the projected
19normal cost for that fiscal year, plus (2) an amount sufficient
20to bring the total assets of the System up to 100% of the total
21actuarial liabilities of the System by the end of State fiscal
22year 2043. In making these determinations, the required State
23contribution shall be calculated each year as a level
24percentage of payroll over the years remaining to and including
25fiscal year 2043 and shall be determined under the projected

 

 

09700SB1673ham010- 25 -LRB097 07605 JDS 73130 a

1unit credit actuarial cost method.
2    For State fiscal years 2012 and 2013 through 2045, the
3minimum contribution to the System to be made by the State for
4each fiscal year shall be an amount determined by the System to
5be sufficient to bring the total assets of the System up to 90%
6of the 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.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2006 is
19$4,157,000.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2007 is
22$5,220,300.
23    For each of State fiscal years 2008 through 2009, the State
24contribution to the System, as a percentage of the applicable
25employee payroll, shall be increased in equal annual increments
26from the required State contribution for State fiscal year

 

 

09700SB1673ham010- 26 -LRB097 07605 JDS 73130 a

12007, so that by State fiscal year 2011, the State is
2contributing at the rate otherwise required under this Section.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2010 is
5$10,454,000 and shall be made from the proceeds of bonds sold
6in fiscal year 2010 pursuant to Section 7.2 of the General
7Obligation Bond Act, less (i) the pro rata share of bond sale
8expenses determined by the System's share of total bond
9proceeds, (ii) any amounts received from the General Revenue
10Fund in fiscal year 2010, and (iii) any reduction in bond
11proceeds due to the issuance of discounted bonds, if
12applicable.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2011 is
15the amount recertified by the System on or before April 1, 2011
16pursuant to Section 2-134 and shall be made from the proceeds
17of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
18the General Obligation Bond Act, less (i) the pro rata share of
19bond sale expenses determined by the System's share of total
20bond proceeds, (ii) any amounts received from the General
21Revenue Fund in fiscal year 2011, and (iii) any reduction in
22bond proceeds due to the issuance of discounted bonds, if
23applicable.
24    Beginning in State fiscal year 2044, the minimum State
25contribution for each fiscal year shall be the amount needed to
26maintain the total assets of the System at 100% of the total

 

 

09700SB1673ham010- 27 -LRB097 07605 JDS 73130 a

1actuarial liabilities of the System.
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 100% 90%. A reference in this Article
15to the "required State contribution" or any substantially
16similar term does not include or apply to any amounts payable
17to the System under Section 25 of the Budget Stabilization Act.
18    Notwithstanding any other provision of this Code or the
19Budget Stabilization Act, amounts transferred to the System
20pursuant to the Budget Stabilization Act after the effective
21date of this amendatory Act of the 97th General Assembly do not
22reduce and do not constitute payment of any portion of the
23required State contribution under this Article in that fiscal
24year. Such amounts shall not reduce, and shall not be included
25in the calculation of, the required State contributions under
26this Article in any future year until the System has received

 

 

09700SB1673ham010- 28 -LRB097 07605 JDS 73130 a

1payment of contributions pursuant to the Budget Stabilization
2Act.
3    Notwithstanding any other provision of this Section, the
4required State contribution for State fiscal year 2005 and for
5fiscal year 2008 and each fiscal year thereafter through State
6fiscal year 2013, as calculated under this Section and
7certified under Section 2-134, shall not exceed an amount equal
8to (i) the amount of the required State contribution that would
9have been calculated under this Section for that fiscal year if
10the System had not received any payments under subsection (d)
11of Section 7.2 of the General Obligation Bond Act, minus (ii)
12the portion of the State's total debt service payments for that
13fiscal year on the bonds issued in fiscal year 2003 for the
14purposes of that Section 7.2, as determined and certified by
15the Comptroller, that is the same as the System's portion of
16the total moneys distributed under subsection (d) of Section
177.2 of the General Obligation Bond Act. In determining this
18maximum for State fiscal years 2008 through 2010, however, the
19amount referred to in item (i) shall be increased, as a
20percentage of the applicable employee payroll, in equal
21increments calculated from the sum of the required State
22contribution for State fiscal year 2007 plus the applicable
23portion of the State's total debt service payments for fiscal
24year 2007 on the bonds issued in fiscal year 2003 for the
25purposes of Section 7.2 of the General Obligation Bond Act, so
26that, by State fiscal year 2011, the State is contributing at

 

 

09700SB1673ham010- 29 -LRB097 07605 JDS 73130 a

1the rate otherwise required under this Section.
2    (d) For purposes of determining the required State
3contribution to the System, the value of the System's assets
4shall be equal to the actuarial value of the System's assets,
5which shall be calculated as follows:
6    As of June 30, 2008, the actuarial value of the System's
7assets shall be equal to the market value of the assets as of
8that date. In determining the actuarial value of the System's
9assets for fiscal years after June 30, 2008, any actuarial
10gains or losses from investment return incurred in a fiscal
11year shall be recognized in equal annual amounts over the
125-year period following that fiscal year.
13    (e) For purposes of determining the required State
14contribution to the system for a particular year, the actuarial
15value of assets shall be assumed to earn a rate of return equal
16to the system's actuarially assumed rate of return.
17(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1896-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
197-13-12.)
 
20    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
21    Sec. 2-125. Obligations of State; funding guarantee.
22    (a) The payment of (1) the required State contributions,
23(2) all benefits granted under this system and (3) all expenses
24of administration and operation are obligations of the State to
25the extent specified in this Article.

 

 

09700SB1673ham010- 30 -LRB097 07605 JDS 73130 a

1    (b) All income, interest and dividends derived from
2deposits and investments shall be credited to the account of
3the system in the State Treasury and used to pay benefits under
4this Article.
5    (c) Beginning July 1, 2013, the State shall be
6contractually obligated to contribute to the System under
7Section 2-124 in each State fiscal year an amount not less than
8the sum of (i) the State's normal cost for that year and (ii)
9the portion of the unfunded accrued liability assigned to that
10year by law in accordance with a schedule that distributes
11payments equitably over a reasonable period of time and in
12accordance with accepted actuarial practices. The obligations
13created under this subsection (c) are contractual obligations
14protected and enforceable under Article I, Section 16 and
15Article XIII, Section 5 of the Illinois Constitution.
16    Notwithstanding any other provision of law, if the State
17fails to pay in a State fiscal year the amount guaranteed under
18this subsection, the System may bring a mandamus action in the
19Circuit Court of Sangamon County to compel the State to make
20that payment, irrespective of other remedies that may be
21available to the System. In ordering the State to make the
22required payment, the court may order a reasonable payment
23schedule to enable the State to make the required payment
24without significantly imperiling the public health, safety, or
25welfare.
26(Source: P.A. 83-1440.)
 

 

 

09700SB1673ham010- 31 -LRB097 07605 JDS 73130 a

1    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
2    Sec. 2-126. Contributions by participants.
3    (a) Each participant shall contribute toward the cost of
4his or her retirement annuity a percentage of each payment of
5salary received by him or her for service as a member as
6follows: for service between October 31, 1947 and January 1,
71959, 5%; for service between January 1, 1959 and June 30,
81969, 6%; for service between July 1, 1969 and January 10,
91973, 6 1/2%; for service after January 10, 1973, 7%; for
10service after December 31, 1981, 8 1/2%.
11    (a-5) In addition to the contributions otherwise required
12under this Article, each Tier I participant shall also make the
13following contributions toward the cost of his or her
14retirement annuity from each payment of salary received by him
15or her for service as a member:
16        (1) beginning July 1, 2013 and through June 30, 2014,
17    1% of salary; and
18        (2) beginning on July 1, 2014, 2% of salary.
19    (b) Beginning August 2, 1949, each male participant, and
20from July 1, 1971, each female participant shall contribute
21towards the cost of the survivor's annuity 2% of salary.
22    A participant who has no eligible survivor's annuity
23beneficiary may elect to cease making contributions for
24survivor's annuity under this subsection. A survivor's annuity
25shall not be payable upon the death of a person who has made

 

 

09700SB1673ham010- 32 -LRB097 07605 JDS 73130 a

1this election, unless prior to that death the election has been
2revoked and the amount of the contributions that would have
3been paid under this subsection in the absence of the election
4is paid to the System, together with interest at the rate of 4%
5per year from the date the contributions would have been made
6to the date of payment.
7    (c) Beginning July 1, 1967, each participant shall
8contribute 1% of salary towards the cost of automatic increase
9in annuity provided in Section 2-119.1. These contributions
10shall be made concurrently with contributions for retirement
11annuity purposes.
12    (d) In addition, each participant serving as an officer of
13the General Assembly shall contribute, for the same purposes
14and at the same rates as are required of a regular participant,
15on each additional payment received as an officer. If the
16participant serves as an officer for at least 2 but less than 4
17years, he or she shall contribute an amount equal to the amount
18that would have been contributed had the participant served as
19an officer for 4 years. Persons who serve as officers in the
2087th General Assembly but cannot receive the additional payment
21to officers because of the ban on increases in salary during
22their terms may nonetheless make contributions based on those
23additional payments for the purpose of having the additional
24payments included in their highest salary for annuity purposes;
25however, persons electing to make these additional
26contributions must also pay an amount representing the

 

 

09700SB1673ham010- 33 -LRB097 07605 JDS 73130 a

1corresponding employer contributions, as calculated by the
2System.
3    (e) Notwithstanding any other provision of this Article,
4the required contribution of a participant who first becomes a
5participant on or after January 1, 2011 shall not exceed the
6contribution that would be due under this Article if that
7participant's highest salary for annuity purposes were
8$106,800, plus any increases in that amount under Section
92-108.1.
10(Source: P.A. 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
12    Sec. 2-134. To certify required State contributions and
13submit vouchers.
14    (a) The Board shall certify to the Governor on or before
15December 15 of each year through until December 15, 2011 the
16amount of the required State contribution to the System for the
17next fiscal year and shall specifically identify the System's
18projected State normal cost for that fiscal year. The
19certification shall include a copy of the actuarial
20recommendations upon which it is based and shall specifically
21identify the System's projected State normal cost for that
22fiscal year.
23    (a-5) On or before November 1 of each year, beginning
24November 1, 2012, the Board shall submit to the State Actuary,
25the Governor, and the General Assembly a proposed certification

 

 

09700SB1673ham010- 34 -LRB097 07605 JDS 73130 a

1of the amount of the required State contribution to the System
2for the next fiscal year, along with all of the actuarial
3assumptions, calculations, and data upon which that proposed
4certification is based. On or before January 1 of each year,
5beginning January 1, 2013, the State Actuary shall issue a
6preliminary report concerning the proposed certification and
7identifying, if necessary, recommended changes in actuarial
8assumptions that the Board must consider before finalizing its
9certification of the required State contributions.
10    On or before January 15, 2013 and every January 15
11thereafter, the Board shall certify to the Governor and the
12General Assembly the amount of the required State contribution
13for the next fiscal year. The Board's certification shall
14include a copy of the actuarial recommendations upon which it
15is based and shall specifically identify the System's projected
16State normal cost for that fiscal year. The Board's
17certification must note any deviations from the State Actuary's
18recommended changes, the reason or reasons for not following
19the State Actuary's recommended changes, and the fiscal impact
20of not following the State Actuary's recommended changes on the
21required State contribution.
22    (a-7) On or before May 1, 2004, the Board shall recalculate
23and recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2005, taking
25into account the amounts appropriated to and received by the
26System under subsection (d) of Section 7.2 of the General

 

 

09700SB1673ham010- 35 -LRB097 07605 JDS 73130 a

1Obligation Bond Act.
2    On or before July 1, 2005, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2006, taking
5into account the changes in required State contributions made
6by this amendatory Act of the 94th General Assembly.
7    On or before April 1, 2011, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2011, applying
10the changes made by Public Act 96-889 to the System's assets
11and liabilities as of June 30, 2009 as though Public Act 96-889
12was approved on that date.
13    (b) Beginning in State fiscal year 1996, on or as soon as
14possible after the 15th day of each month the Board shall
15submit vouchers for payment of State contributions to the
16System, in a total monthly amount of one-twelfth of the
17required annual State contribution certified under subsection
18(a). From the effective date of this amendatory Act of the 93rd
19General Assembly through June 30, 2004, the Board shall not
20submit vouchers for the remainder of fiscal year 2004 in excess
21of the fiscal year 2004 certified contribution amount
22determined under this Section after taking into consideration
23the transfer to the System under subsection (d) 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. If in

 

 

09700SB1673ham010- 36 -LRB097 07605 JDS 73130 a

1any month the amount remaining unexpended from all other
2appropriations to the System for the applicable fiscal year
3(including the appropriations to the System under Section 8.12
4of the State Finance Act and Section 1 of the State Pension
5Funds Continuing Appropriation Act) is less than the amount
6lawfully vouchered under this Section, the difference shall be
7paid from the General Revenue Fund under the continuing
8appropriation authority provided in Section 1.1 of the State
9Pension Funds Continuing Appropriation Act.
10    (c) The full amount of any annual appropriation for the
11System for State fiscal year 1995 shall be transferred and made
12available to the System at the beginning of that fiscal year at
13the request of the Board. Any excess funds remaining at the end
14of any fiscal year from appropriations shall be retained by the
15System as a general reserve to meet the System's accrued
16liabilities.
17(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1897-694, eff. 6-18-12.)
 
19    (40 ILCS 5/2-162)
20    Sec. 2-162. Application and expiration of new benefit
21increases.
22    (a) As used in this Section, "new benefit increase" means
23an increase in the amount of any benefit provided under this
24Article, or an expansion of the conditions of eligibility for
25any benefit under this Article, that results from an amendment

 

 

09700SB1673ham010- 37 -LRB097 07605 JDS 73130 a

1to this Code that takes effect after the effective date of this
2amendatory Act of the 94th General Assembly. "New benefit
3increase", however, does not include any benefit increase
4resulting from the changes made to this Article by this
5amendatory Act of the 97th General Assembly.
6    (b) Notwithstanding any other provision of this Code or any
7subsequent amendment to this Code, every new benefit increase
8is subject to this Section and shall be deemed to be granted
9only in conformance with and contingent upon compliance with
10the provisions of this Section.
11    (c) The Public Act enacting a new benefit increase must
12identify and provide for payment to the System of additional
13funding at least sufficient to fund the resulting annual
14increase in cost to the System as it accrues.
15    Every new benefit increase is contingent upon the General
16Assembly providing the additional funding required under this
17subsection. The Commission on Government Forecasting and
18Accountability shall analyze whether adequate additional
19funding has been provided for the new benefit increase and
20shall report its analysis to the Public Pension Division of the
21Department of Financial and Professional Regulation. A new
22benefit increase created by a Public Act that does not include
23the additional funding required under this subsection is null
24and void. If the Public Pension Division determines that the
25additional funding provided for a new benefit increase under
26this subsection is or has become inadequate, it may so certify

 

 

09700SB1673ham010- 38 -LRB097 07605 JDS 73130 a

1to the Governor and the State Comptroller and, in the absence
2of corrective action by the General Assembly, the new benefit
3increase shall expire at the end of the fiscal year in which
4the certification is made.
5    (d) Every new benefit increase shall expire 5 years after
6its effective date or on such earlier date as may be specified
7in the language enacting the new benefit increase or provided
8under subsection (c). This does not prevent the General
9Assembly from extending or re-creating a new benefit increase
10by law.
11    (e) Except as otherwise provided in the language creating
12the new benefit increase, a new benefit increase that expires
13under this Section continues to apply to persons who applied
14and qualified for the affected benefit while the new benefit
15increase was in effect and to the affected beneficiaries and
16alternate payees of such persons, but does not apply to any
17other person, including without limitation a person who
18continues in service after the expiration date and did not
19apply and qualify for the affected benefit while the new
20benefit increase was in effect.
21(Source: P.A. 94-4, eff. 6-1-05.)
 
22    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
23    Sec. 7-109. Employee.
24    (1) "Employee" means any person who:
25        (a) 1. Receives earnings as payment for the performance

 

 

09700SB1673ham010- 39 -LRB097 07605 JDS 73130 a

1        of personal services or official duties out of the
2        general fund of a municipality, or out of any special
3        fund or funds controlled by a municipality, or by an
4        instrumentality thereof, or a participating
5        instrumentality, including, in counties, the fees or
6        earnings of any county fee office; and
7            2. Under the usual common law rules applicable in
8        determining the employer-employee relationship, has
9        the status of an employee with a municipality, or any
10        instrumentality thereof, or a participating
11        instrumentality, including aldermen, county
12        supervisors and other persons (excepting those
13        employed as independent contractors) who are paid
14        compensation, fees, allowances or other emolument for
15        official duties, and, in counties, the several county
16        fee offices.
17        (b) Serves as a township treasurer appointed under the
18    School Code, as heretofore or hereafter amended, and who
19    receives for such services regular compensation as
20    distinguished from per diem compensation, and any regular
21    employee in the office of any township treasurer whether or
22    not his earnings are paid from the income of the permanent
23    township fund or from funds subject to distribution to the
24    several school districts and parts of school districts as
25    provided in the School Code, or from both such sources; or
26    is the chief executive officer, chief educational officer,

 

 

09700SB1673ham010- 40 -LRB097 07605 JDS 73130 a

1    chief fiscal officer, or other employee of a Financial
2    Oversight Panel established pursuant to Article 1H of the
3    School Code, other than a superintendent or certified
4    school business official, except that such person shall not
5    be treated as an employee under this Section if that person
6    has negotiated with the Financial Oversight Panel, in
7    conjunction with the school district, a contractual
8    agreement for exclusion from this Section.
9        (c) Holds an elective office in a municipality,
10    instrumentality thereof or participating instrumentality.
11    (2) "Employee" does not include persons who:
12        (a) Are eligible for inclusion under any of the
13    following laws:
14            1. "An Act in relation to an Illinois State
15        Teachers' Pension and Retirement Fund", approved May
16        27, 1915, as amended;
17            2. Articles 15 and 16 of this Code.
18        However, such persons shall be included as employees to
19    the extent of earnings that are not eligible for inclusion
20    under the foregoing laws for services not of an
21    instructional nature of any kind.
22        However, any member of the armed forces who is employed
23    as a teacher of subjects in the Reserve Officers Training
24    Corps of any school and who is not certified under the law
25    governing the certification of teachers shall be included
26    as an employee.

 

 

09700SB1673ham010- 41 -LRB097 07605 JDS 73130 a

1        (b) Are designated by the governing body of a
2    municipality in which a pension fund is required by law to
3    be established for policemen or firemen, respectively, as
4    performing police or fire protection duties, except that
5    when such persons are the heads of the police or fire
6    department and are not eligible to be included within any
7    such pension fund, they shall be included within this
8    Article; provided, that such persons shall not be excluded
9    to the extent of concurrent service and earnings not
10    designated as being for police or fire protection duties.
11    However, (i) any head of a police department who was a
12    participant under this Article immediately before October
13    1, 1977 and did not elect, under Section 3-109 of this Act,
14    to participate in a police pension fund shall be an
15    "employee", and (ii) any chief of police who elects to
16    participate in this Fund under Section 3-109.1 of this
17    Code, regardless of whether such person continues to be
18    employed as chief of police or is employed in some other
19    rank or capacity within the police department, shall be an
20    employee under this Article for so long as such person is
21    employed to perform police duties by a participating
22    municipality and has not lawfully rescinded that election.
23        (c) After August 26, 2011 (the effective date of Public
24    Act 97-609), are contributors to or eligible to contribute
25    to a Taft-Hartley pension plan established on or before
26    June 1, 2011 and are employees of a theatre, arena, or

 

 

09700SB1673ham010- 42 -LRB097 07605 JDS 73130 a

1    convention center that is located in a municipality located
2    in a county with a population greater than 5,000,000, and
3    to which the participating municipality is required to
4    contribute as the person's employer based on earnings from
5    the municipality. Nothing in this paragraph shall affect
6    service credit or creditable service for any period of
7    service prior to August 26, 2011, and this paragraph shall
8    not apply to individuals who are participating in the Fund
9    prior to August 26, 2011.
10        (d) Become an employee of any of the following
11    participating instrumentalities on or after the effective
12    date of this amendatory Act of the 97th General Assembly:
13    the Illinois Municipal League; the Illinois Association of
14    Park Districts; the Illinois Supervisors, County
15    Commissioners and Superintendents of Highways Association;
16    an association, or not-for-profit corporation, membership
17    in which is authorized under Section 85-15 of the Township
18    Code; the United Counties Council; or the Will County
19    Governmental League.
20    (3) All persons, including, without limitation, public
21defenders and probation officers, who receive earnings from
22general or special funds of a county for performance of
23personal services or official duties within the territorial
24limits of the county, are employees of the county (unless
25excluded by subsection (2) of this Section) notwithstanding
26that they may be appointed by and are subject to the direction

 

 

09700SB1673ham010- 43 -LRB097 07605 JDS 73130 a

1of a person or persons other than a county board or a county
2officer. It is hereby established that an employer-employee
3relationship under the usual common law rules exists between
4such employees and the county paying their salaries by reason
5of the fact that the county boards fix their rates of
6compensation, appropriate funds for payment of their earnings
7and otherwise exercise control over them. This finding and this
8amendatory Act shall apply to all such employees from the date
9of appointment whether such date is prior to or after the
10effective date of this amendatory Act and is intended to
11clarify existing law pertaining to their status as
12participating employees in the Fund.
13(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
1497-813, eff. 7-13-12.)
 
15    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
16    Sec. 14-103.10. Compensation.
17    (a) For periods of service prior to January 1, 1978, the
18full rate of salary or wages payable to an employee for
19personal services performed if he worked the full normal
20working period for his position, subject to the following
21maximum amounts: (1) prior to July 1, 1951, $400 per month or
22$4,800 per year; (2) between July 1, 1951 and June 30, 1957
23inclusive, $625 per month or $7,500 per year; (3) beginning
24July 1, 1957, no limitation.
25    In the case of service of an employee in a position

 

 

09700SB1673ham010- 44 -LRB097 07605 JDS 73130 a

1involving part-time employment, compensation shall be
2determined according to the employees' earnings record.
3    (b) For periods of service on and after January 1, 1978,
4all remuneration for personal services performed defined as
5"wages" under the Social Security Enabling Act, including that
6part of such remuneration which is in excess of any maximum
7limitation provided in such Act, and including any benefits
8received by an employee under a sick pay plan in effect before
9January 1, 1981, but excluding lump sum salary payments:
10        (1) for vacation,
11        (2) for accumulated unused sick leave,
12        (3) upon discharge or dismissal,
13        (4) for approved holidays.
14    (c) For periods of service on or after December 16, 1978,
15compensation also includes any benefits, other than lump sum
16salary payments made at termination of employment, which an
17employee receives or is eligible to receive under a sick pay
18plan authorized by law.
19    (d) For periods of service after September 30, 1985,
20compensation also includes any remuneration for personal
21services not included as "wages" under the Social Security
22Enabling Act, which is deducted for purposes of participation
23in a program established pursuant to Section 125 of the
24Internal Revenue Code or its successor laws.
25    (e) For members for which Section 1-160 applies for periods
26of service on and after January 1, 2011, all remuneration for

 

 

09700SB1673ham010- 45 -LRB097 07605 JDS 73130 a

1personal services performed defined as "wages" under the Social
2Security Enabling Act, excluding remuneration that is in excess
3of the annual earnings, salary, or wages of a member or
4participant, as provided in subsection (b-5) of Section 1-160,
5but including any benefits received by an employee under a sick
6pay plan in effect before January 1, 1981. Compensation shall
7exclude lump sum salary payments:
8        (1) for vacation;
9        (2) for accumulated unused sick leave;
10        (3) upon discharge or dismissal; and
11        (4) for approved holidays.
12    (f) Notwithstanding any other provision of this Code, the
13compensation of a Tier I member for the purposes of this Code
14shall not exceed, for periods of service on or after the
15effective date of this amendatory Act of the 97th General
16Assembly, the greater of (i) the annual contribution and
17benefit base established for the applicable year by the
18Commissioner of Social Security under the federal Social
19Security Act or (ii) the annual compensation of the member
20during the 365 days immediately preceding the effective date of
21this Section; except that this limitation does not apply to a
22member's compensation that is determined under an employment
23contract or collective bargaining agreement that is in effect
24on the effective date of this amendatory Act of the 97th
25General Assembly and has not been amended or renewed after that
26date.

 

 

09700SB1673ham010- 46 -LRB097 07605 JDS 73130 a

1    (g) Notwithstanding the other provisions of this Section,
2for an employee who first becomes a participant on or after the
3effective date of this amendatory Act of the 97th General
4Assembly, "compensation" does not include any payments or
5reimbursements for travel vouchers.
6(Source: P.A. 96-1490, eff. 1-1-11.)
 
7    (40 ILCS 5/14-103.40 new)
8    Sec. 14-103.40. Tier I member. "Tier I member": A member of
9this System who first became a member or participant before
10January 1, 2011 under any reciprocal retirement system or
11pension fund established under this Code other than a
12retirement system or pension fund established under Article 2,
133, 4, 5, 6, or 18 of this Code.
 
14    (40 ILCS 5/14-103.41 new)
15    Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former
16Tier I member who is receiving a retirement annuity.
 
17    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
18    Sec. 14-106. Membership service credit.
19    (a) After January 1, 1944, all service of a member since he
20last became a member with respect to which contributions are
21made shall count as membership service; provided, that for
22service on and after July 1, 1950, 12 months of service shall
23constitute a year of membership service, the completion of 15

 

 

09700SB1673ham010- 47 -LRB097 07605 JDS 73130 a

1days or more of service during any month shall constitute 1
2month of membership service, 8 to 15 days shall constitute 1/2
3month of membership service and less than 8 days shall
4constitute 1/4 month of membership service. The payroll record
5of each department shall constitute conclusive evidence of the
6record of service rendered by a member.
7    (b) For a member who is employed and paid on an
8academic-year basis rather than on a 12-month annual basis,
9employment for a full academic year shall constitute a full
10year of membership service, except that the member shall not
11receive more than one year of membership service credit (plus
12any additional service credit granted for unused sick leave)
13for service during any 12-month period. This subsection (b)
14applies to all such service for which the member has not begun
15to receive a retirement annuity before January 1, 2001.
16    (c) A member who first participated in this System before
17the effective date of this amendatory Act of the 97th General
18Assembly shall be entitled to additional service credit, under
19rules prescribed by the Board, for accumulated unused sick
20leave credited to his account in the last Department on the
21date of withdrawal from service or for any period for which he
22would have been eligible to receive benefits under a sick pay
23plan authorized by law, if he had suffered a sickness or
24accident on the date of withdrawal from service. It shall be
25the responsibility of the last Department to certify to the
26Board the length of time salary or benefits would have been

 

 

09700SB1673ham010- 48 -LRB097 07605 JDS 73130 a

1paid to the member based upon the accumulated unused sick leave
2or the applicable sick pay plan if he had become entitled
3thereto because of sickness on the date that his status as an
4employee terminated. This period of service credit granted
5under this paragraph shall not be considered in determining the
6date the retirement annuity is to begin, or final average
7compensation.
8    Service credit is not available for unused sick leave
9accumulated by a person who first participates in this System
10on or after the effective date of this amendatory Act of the
1197th General Assembly.
12(Source: P.A. 92-14, eff. 6-28-01.)
 
13    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
14    Sec. 14-114. Automatic increase in retirement annuity.
15    (a) Except as provided in subsections (a-1) and (a-2), any
16Any person receiving a retirement annuity under this Article
17who retires having attained age 60, or who retires before age
1860 having at least 35 years of creditable service, or who
19retires on or after January 1, 2001 at an age which, when added
20to the number of years of his or her creditable service, equals
21at least 85, shall, on January 1 next following the first full
22year of retirement, have the amount of the then fixed and
23payable monthly retirement annuity increased 3%. Any person
24receiving a retirement annuity under this Article who retires
25before attainment of age 60 and with less than (i) 35 years of

 

 

09700SB1673ham010- 49 -LRB097 07605 JDS 73130 a

1creditable service if retirement is before January 1, 2001, or
2(ii) the number of years of creditable service which, when
3added to the member's age, would equal 85, if retirement is on
4or after January 1, 2001, shall have the amount of the fixed
5and payable retirement annuity increased by 3% on the January 1
6occurring on or next following (1) attainment of age 60, or (2)
7the first anniversary of retirement, whichever occurs later.
8However, for persons who receive the alternative retirement
9annuity under Section 14-110, references in this subsection (a)
10to attainment of age 60 shall be deemed to refer to attainment
11of age 55. For a person receiving early retirement incentives
12under Section 14-108.3 whose retirement annuity began after
13January 1, 1992 pursuant to an extension granted under
14subsection (e) of that Section, the first anniversary of
15retirement shall be deemed to be January 1, 1993. For a person
16who retires on or after June 28, 2001 and on or before October
171, 2001, and whose retirement annuity is calculated, in whole
18or in part, under Section 14-110 or subsection (g) or (h) of
19Section 14-108, the first anniversary of retirement shall be
20deemed to be January 1, 2002.
21    On each January 1 following the date of the initial
22increase under this subsection, the employee's monthly
23retirement annuity shall be increased by an additional 3%.
24    Beginning January 1, 1990 and except as provided in
25subsections (a-1) and (a-2), all automatic annual increases
26payable under this Section shall be calculated as a percentage

 

 

09700SB1673ham010- 50 -LRB097 07605 JDS 73130 a

1of the total annuity payable at the time of the increase,
2including previous increases granted under this Article.
3    (a-1) Notwithstanding any other provision of this Article,
4for a Tier I retiree, the amount of each automatic increase in
5retirement annuity occurring on or after the effective date of
6this amendatory Act of the 97th General Assembly shall be the
7lesser of (i) $600 ($750 if the annuity is based primarily upon
8service as a noncovered employee) or (ii) 3% of the total
9annuity payable at the time of the increase, including previous
10increases granted.
11    (a-2) Notwithstanding any other provision of this Article,
12the System shall not grant any new or additional automatic
13increase in retirement annuity to a Tier I retiree on or after
14the effective date of this amendatory Act of the 97th General
15Assembly and before January 1, 2020.
16    Notwithstanding any other provision of this Article, the
17System shall not grant any new or additional automatic increase
18in retirement annuity to a Tier I retiree who has not yet
19attained the age of 67, regardless of any age augmentation
20granted under this Article as an early retirement incentive.
21    If on the effective date of this amendatory Act of the 97th
22General Assembly a Tier I retiree has already received an
23annual increase under this Section but does not yet meet the
24new eligibility requirements of this subsection, the annual
25increases already received shall continue in force, but no
26additional annual increase shall be granted until the Tier I

 

 

09700SB1673ham010- 51 -LRB097 07605 JDS 73130 a

1retiree meets the new eligibility requirements.
2    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
3and (a-2) apply without regard to whether or not the Tier I
4retiree is in active service under this Article on or after the
5effective date of this amendatory Act of the 97th General
6Assembly.
7    (b) The provisions of subsection (a) of this Section shall
8be applicable to an employee only if the employee makes the
9additional contributions required after December 31, 1969 for
10the purpose of the automatic increases for not less than the
11equivalent of one full year. If an employee becomes an
12annuitant before his additional contributions equal one full
13year's contributions based on his salary at the date of
14retirement, the employee may pay the necessary balance of the
15contributions to the system, without interest, and be eligible
16for the increasing annuity authorized by this Section.
17    (c) The provisions of subsection (a) of this Section shall
18not be applicable to any annuitant who is on retirement on
19December 31, 1969, and thereafter returns to State service,
20unless the member has established at least one year of
21additional creditable service following reentry into service.
22    (d) In addition to other increases which may be provided by
23this Section, on January 1, 1981 any annuitant who was
24receiving a retirement annuity on or before January 1, 1971
25shall have his retirement annuity then being paid increased $1
26per month for each year of creditable service. On January 1,

 

 

09700SB1673ham010- 52 -LRB097 07605 JDS 73130 a

11982, any annuitant who began receiving a retirement annuity on
2or before January 1, 1977, shall have his retirement annuity
3then being paid increased $1 per month for each year of
4creditable service.
5    On January 1, 1987, any annuitant who began receiving a
6retirement annuity on or before January 1, 1977, shall have the
7monthly retirement annuity increased by an amount equal to 8
8per year of creditable service times the number of years that
9have elapsed since the annuity began.
10    (e) Every person who receives the alternative retirement
11annuity under Section 14-110 and who is eligible to receive the
123% increase under subsection (a) on January 1, 1986, shall also
13receive on that date a one-time increase in retirement annuity
14equal to the difference between (1) his actual retirement
15annuity on that date, including any increases received under
16subsection (a), and (2) the amount of retirement annuity he
17would have received on that date if the amendments to
18subsection (a) made by Public Act 84-162 had been in effect
19since the date of his retirement.
20(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2192-651, eff. 7-11-02.)
 
22    (40 ILCS 5/14-131)
23    Sec. 14-131. Contributions by State.
24    (a) The State shall make contributions to the System by
25appropriations of amounts which, together with other employer

 

 

09700SB1673ham010- 53 -LRB097 07605 JDS 73130 a

1contributions from trust, federal, and other funds, employee
2contributions, investment income, and other income, will be
3sufficient to meet the cost of maintaining and administering
4the System on a 100% 90% funded basis in accordance with
5actuarial recommendations by the end of State fiscal year 2043.
6    For the purposes of this Section and Section 14-135.08,
7references to State contributions refer only to employer
8contributions and do not include employee contributions that
9are picked up or otherwise paid by the State or a department on
10behalf of the employee.
11    (b) The Board shall determine the total amount of State
12contributions required for each fiscal year on the basis of the
13actuarial tables and other assumptions adopted by the Board,
14using the formula in subsection (e).
15    The Board shall also determine a State contribution rate
16for each fiscal year, expressed as a percentage of payroll,
17based on the total required State contribution for that fiscal
18year (less the amount received by the System from
19appropriations under Section 8.12 of the State Finance Act and
20Section 1 of the State Pension Funds Continuing Appropriation
21Act, if any, for the fiscal year ending on the June 30
22immediately preceding the applicable November 15 certification
23deadline), the estimated payroll (including all forms of
24compensation) for personal services rendered by eligible
25employees, and the recommendations of the actuary.
26    For the purposes of this Section and Section 14.1 of the

 

 

09700SB1673ham010- 54 -LRB097 07605 JDS 73130 a

1State Finance Act, the term "eligible employees" includes
2employees who participate in the System, persons who may elect
3to participate in the System but have not so elected, persons
4who are serving a qualifying period that is required for
5participation, and annuitants employed by a department as
6described in subdivision (a)(1) or (a)(2) of Section 14-111.
7    (c) Contributions shall be made by the several departments
8for each pay period by warrants drawn by the State Comptroller
9against their respective funds or appropriations based upon
10vouchers stating the amount to be so contributed. These amounts
11shall be based on the full rate certified by the Board under
12Section 14-135.08 for that fiscal year. From the effective date
13of this amendatory Act of the 93rd General Assembly through the
14payment of the final payroll from fiscal year 2004
15appropriations, the several departments shall not make
16contributions for the remainder of fiscal year 2004 but shall
17instead make payments as required under subsection (a-1) of
18Section 14.1 of the State Finance Act. The several departments
19shall resume those contributions at the commencement of fiscal
20year 2005.
21    (c-1) Notwithstanding subsection (c) of this Section, for
22fiscal years 2010, 2012, and 2013 only, contributions by the
23several departments are not required to be made for General
24Revenue Funds payrolls processed by the Comptroller. Payrolls
25paid by the several departments from all other State funds must
26continue to be processed pursuant to subsection (c) of this

 

 

09700SB1673ham010- 55 -LRB097 07605 JDS 73130 a

1Section.
2    (c-2) For State fiscal years 2010, 2012, and 2013 only, on
3or as soon as possible after the 15th day of each month, the
4Board shall submit vouchers for payment of State contributions
5to the System, in a total monthly amount of one-twelfth of the
6fiscal year General Revenue Fund contribution as certified by
7the System pursuant to Section 14-135.08 of the Illinois
8Pension Code.
9    (d) If an employee is paid from trust funds or federal
10funds, the department or other employer shall pay employer
11contributions from those funds to the System at the certified
12rate, unless the terms of the trust or the federal-State
13agreement preclude the use of the funds for that purpose, in
14which case the required employer contributions shall be paid by
15the State. From the effective date of this amendatory Act of
16the 93rd General Assembly through the payment of the final
17payroll from fiscal year 2004 appropriations, the department or
18other employer shall not pay contributions for the remainder of
19fiscal year 2004 but shall instead make payments as required
20under subsection (a-1) of Section 14.1 of the State Finance
21Act. The department or other employer shall resume payment of
22contributions at the commencement of fiscal year 2005.
23    (e) For State fiscal years 2014 through 2043, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26equal to the sum of (1) the State's portion of the projected

 

 

09700SB1673ham010- 56 -LRB097 07605 JDS 73130 a

1normal cost for that fiscal year, plus (2) an amount sufficient
2to bring the total assets of the System up to 100% of the total
3actuarial liabilities of the System by the end of State fiscal
4year 2043. In making these determinations, the required State
5contribution shall be calculated each year as a level
6percentage of payroll over the years remaining to and including
7fiscal year 2043 and shall be determined under the projected
8unit credit actuarial cost method.
9For State fiscal years 2012 and 2013 through 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19    For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section; except that (i) for State
24fiscal year 1998, for all purposes of this Code and any other
25law of this State, the certified percentage of the applicable
26employee payroll shall be 5.052% for employees earning eligible

 

 

09700SB1673ham010- 57 -LRB097 07605 JDS 73130 a

1creditable service under Section 14-110 and 6.500% for all
2other employees, notwithstanding any contrary certification
3made under Section 14-135.08 before the effective date of this
4amendatory Act of 1997, and (ii) in the following specified
5State fiscal years, the State contribution to the System shall
6not be less than the following indicated percentages of the
7applicable employee payroll, even if the indicated percentage
8will produce a State contribution in excess of the amount
9otherwise required under this subsection and subsection (a):
109.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
112002; 10.6% in FY 2003; and 10.8% in FY 2004.
12    Notwithstanding any other provision of this Article, the
13total required State contribution to the System for State
14fiscal year 2006 is $203,783,900.
15    Notwithstanding any other provision of this Article, the
16total required State contribution to the System for State
17fiscal year 2007 is $344,164,400.
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 General Revenue Fund contribution for
26State fiscal year 2010 is $723,703,100 and shall be made from

 

 

09700SB1673ham010- 58 -LRB097 07605 JDS 73130 a

1the proceeds of bonds sold in fiscal year 2010 pursuant to
2Section 7.2 of the General Obligation Bond Act, less (i) the
3pro rata share of bond sale expenses determined by the System's
4share of total bond proceeds, (ii) any amounts received from
5the General Revenue Fund in fiscal year 2010, and (iii) any
6reduction in bond proceeds due to the issuance of discounted
7bonds, if applicable.
8    Notwithstanding any other provision of this Article, the
9total required State General Revenue Fund contribution for
10State fiscal year 2011 is the amount recertified by the System
11on or before April 1, 2011 pursuant to Section 14-135.08 and
12shall be made from the proceeds of bonds sold in fiscal year
132011 pursuant to Section 7.2 of the General Obligation Bond
14Act, less (i) the pro rata share of bond sale expenses
15determined by the System's share of total bond proceeds, (ii)
16any amounts received from the General Revenue Fund in fiscal
17year 2011, and (iii) any reduction in bond proceeds due to the
18issuance of discounted bonds, if applicable.
19    Beginning in State fiscal year 2044, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 100% of the total
22actuarial liabilities of the System.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 90% of the total
26actuarial liabilities of the System.

 

 

09700SB1673ham010- 59 -LRB097 07605 JDS 73130 a

1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 100% 90%. A reference in this Article
10to the "required State contribution" or any substantially
11similar term does not include or apply to any amounts payable
12to the System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Code or the
14Budget Stabilization Act, amounts transferred to the System
15pursuant to the Budget Stabilization Act after the effective
16date of this amendatory Act of the 97th General Assembly do not
17reduce and do not constitute payment of any portion of the
18required State contribution under this Article in that fiscal
19year. Such amounts shall not reduce, and shall not be included
20in the calculation of, the required State contributions under
21this Article in any future year until the System has received
22payment of contributions pursuant to the Budget Stabilization
23Act.
24    Notwithstanding any other provision of this Section, the
25required State contribution for State fiscal year 2005 and for
26fiscal year 2008 and each fiscal year thereafter through State

 

 

09700SB1673ham010- 60 -LRB097 07605 JDS 73130 a

1fiscal year 2013, as calculated under this Section and
2certified under Section 14-135.08, shall not exceed an amount
3equal to (i) the amount of the required State contribution that
4would have been calculated under this Section for that fiscal
5year if the System had not received any payments under
6subsection (d) of Section 7.2 of the General Obligation Bond
7Act, minus (ii) the portion of the State's total debt service
8payments for that fiscal year on the bonds issued in fiscal
9year 2003 for the purposes of that Section 7.2, as determined
10and certified by the Comptroller, that is the same as the
11System's portion of the total moneys distributed under
12subsection (d) of Section 7.2 of the General Obligation Bond
13Act. In determining this maximum for State fiscal years 2008
14through 2010, however, the amount referred to in item (i) shall
15be increased, as a percentage of the applicable employee
16payroll, in equal increments calculated from the sum of the
17required State contribution for State fiscal year 2007 plus the
18applicable portion of the State's total debt service payments
19for fiscal year 2007 on the bonds issued in fiscal year 2003
20for the purposes of Section 7.2 of the General Obligation Bond
21Act, so that, by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23    (f) After the submission of all payments for eligible
24employees from personal services line items in fiscal year 2004
25have been made, the Comptroller shall provide to the System a
26certification of the sum of all fiscal year 2004 expenditures

 

 

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1for personal services that would have been covered by payments
2to the System under this Section if the provisions of this
3amendatory Act of the 93rd General Assembly had not been
4enacted. Upon receipt of the certification, the System shall
5determine the amount due to the System based on the full rate
6certified by the Board under Section 14-135.08 for fiscal year
72004 in order to meet the State's obligation under this
8Section. The System shall compare this amount due to the amount
9received by the System in fiscal year 2004 through payments
10under this Section and under Section 6z-61 of the State Finance
11Act. If the amount due is more than the amount received, the
12difference shall be termed the "Fiscal Year 2004 Shortfall" for
13purposes of this Section, and the Fiscal Year 2004 Shortfall
14shall be satisfied under Section 1.2 of the State Pension Funds
15Continuing Appropriation Act. If the amount due is less than
16the amount received, the difference shall be termed the "Fiscal
17Year 2004 Overpayment" for purposes of this Section, and the
18Fiscal Year 2004 Overpayment shall be repaid by the System to
19the Pension Contribution Fund as soon as practicable after the
20certification.
21    (g) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25    As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

 

 

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1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6    (h) For purposes of determining the required State
7contribution to the System for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the System's actuarially assumed rate of return.
10    (i) After the submission of all payments for eligible
11employees from personal services line items paid from the
12General Revenue Fund in fiscal year 2010 have been made, the
13Comptroller shall provide to the System a certification of the
14sum of all fiscal year 2010 expenditures for personal services
15that would have been covered by payments to the System under
16this Section if the provisions of this amendatory Act of the
1796th General Assembly had not been enacted. Upon receipt of the
18certification, the System shall determine the amount due to the
19System based on the full rate certified by the Board under
20Section 14-135.08 for fiscal year 2010 in order to meet the
21State's obligation under this Section. The System shall compare
22this amount due to the amount received by the System in fiscal
23year 2010 through payments under this Section. If the amount
24due is more than the amount received, the difference shall be
25termed the "Fiscal Year 2010 Shortfall" for purposes of this
26Section, and the Fiscal Year 2010 Shortfall shall be satisfied

 

 

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1under Section 1.2 of the State Pension Funds Continuing
2Appropriation Act. If the amount due is less than the amount
3received, the difference shall be termed the "Fiscal Year 2010
4Overpayment" for purposes of this Section, and the Fiscal Year
52010 Overpayment shall be repaid by the System to the General
6Revenue Fund as soon as practicable after the certification.
7    (j) After the submission of all payments for eligible
8employees from personal services line items paid from the
9General Revenue Fund in fiscal year 2011 have been made, the
10Comptroller shall provide to the System a certification of the
11sum of all fiscal year 2011 expenditures for personal services
12that would have been covered by payments to the System under
13this Section if the provisions of this amendatory Act of the
1496th General Assembly had not been enacted. Upon receipt of the
15certification, the System shall determine the amount due to the
16System based on the full rate certified by the Board under
17Section 14-135.08 for fiscal year 2011 in order to meet the
18State's obligation under this Section. The System shall compare
19this amount due to the amount received by the System in fiscal
20year 2011 through payments under this Section. If the amount
21due is more than the amount received, the difference shall be
22termed the "Fiscal Year 2011 Shortfall" for purposes of this
23Section, and the Fiscal Year 2011 Shortfall shall be satisfied
24under Section 1.2 of the State Pension Funds Continuing
25Appropriation Act. If the amount due is less than the amount
26received, the difference shall be termed the "Fiscal Year 2011

 

 

09700SB1673ham010- 64 -LRB097 07605 JDS 73130 a

1Overpayment" for purposes of this Section, and the Fiscal Year
22011 Overpayment shall be repaid by the System to the General
3Revenue Fund as soon as practicable after the certification.
4    (k) For fiscal years 2012 and 2013 only, after the
5submission of all payments for eligible employees from personal
6services line items paid from the General Revenue Fund in the
7fiscal year have been made, the Comptroller shall provide to
8the System a certification of the sum of all expenditures in
9the fiscal year for personal services. Upon receipt of the
10certification, the System shall determine the amount due to the
11System based on the full rate certified by the Board under
12Section 14-135.08 for the fiscal year in order to meet the
13State's obligation under this Section. The System shall compare
14this amount due to the amount received by the System for the
15fiscal year. If the amount due is more than the amount
16received, the difference shall be termed the "Prior Fiscal Year
17Shortfall" for purposes of this Section, and the Prior Fiscal
18Year Shortfall shall be satisfied under Section 1.2 of the
19State Pension Funds Continuing Appropriation Act. If the amount
20due is less than the amount received, the difference shall be
21termed the "Prior Fiscal Year Overpayment" for purposes of this
22Section, and the Prior Fiscal Year Overpayment shall be repaid
23by the System to the General Revenue Fund as soon as
24practicable after the certification.
25(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
2696-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.

 

 

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11-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
2eff. 6-30-12.)
 
3    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
4    Sec. 14-132. Obligations of State; funding guarantee.
5    (a) The payment of the required department contributions,
6all allowances, annuities, benefits granted under this
7Article, and all expenses of administration of the system are
8obligations of the State of Illinois to the extent specified in
9this Article.
10    (b) All income of the system shall be credited to a
11separate account for this system in the State treasury and
12shall be used to pay allowances, annuities, benefits and
13administration expense.
14    (c) Beginning July 1, 2013, the State shall be
15contractually obligated to contribute to the System under
16Section 14-131 in each State fiscal year an amount not less
17than the sum of (i) the State's normal cost for that year and
18(ii) the portion of the unfunded accrued liability assigned to
19that year by law in accordance with a schedule that distributes
20payments equitably over a reasonable period of time and in
21accordance with accepted actuarial practices. The obligations
22created under this subsection (c) are contractual obligations
23protected and enforceable under Article I, Section 16 and
24Article XIII, Section 5 of the Illinois Constitution.
25    Notwithstanding any other provision of law, if the State

 

 

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1fails to pay in a State fiscal year the amount guaranteed under
2this subsection, the System may bring a mandamus action in the
3Circuit Court of Sangamon County to compel the State to make
4that payment, irrespective of other remedies that may be
5available to the System. In ordering the State to make the
6required payment, the court may order a reasonable payment
7schedule to enable the State to make the required payment
8without significantly imperiling the public health, safety, or
9welfare.
10(Source: P.A. 80-841.)
 
11    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
12    Sec. 14-133. Contributions on behalf of members.
13    (a) Each participating employee shall make contributions
14to the System, based on the employee's compensation, as
15follows:
16        (1) Covered employees, except as indicated below, 3.5%
17    for retirement annuity, and 0.5% for a widow or survivors
18    annuity;
19        (2) Noncovered employees, except as indicated below,
20    7% for retirement annuity and 1% for a widow or survivors
21    annuity;
22        (3) Noncovered employees serving in a position in which
23    "eligible creditable service" as defined in Section 14-110
24    may be earned, 1% for a widow or survivors annuity plus the
25    following amount for retirement annuity: 8.5% through

 

 

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1    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
2    in 2004 and thereafter;
3        (4) Covered employees serving in a position in which
4    "eligible creditable service" as defined in Section 14-110
5    may be earned, 0.5% for a widow or survivors annuity plus
6    the following amount for retirement annuity: 5% through
7    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
8    and thereafter;
9        (5) Each security employee of the Department of
10    Corrections or of the Department of Human Services who is a
11    covered employee, 0.5% for a widow or survivors annuity
12    plus the following amount for retirement annuity: 5%
13    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
14    in 2004 and thereafter;
15        (6) Each security employee of the Department of
16    Corrections or of the Department of Human Services who is
17    not a covered employee, 1% for a widow or survivors annuity
18    plus the following amount for retirement annuity: 8.5%
19    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
20    11.5% in 2004 and thereafter.
21    (a-5) In addition to the contributions otherwise required
22under this Article, each Tier I member shall also make the
23following contributions for retirement annuity from each
24payment of compensation:
25        (1) beginning July 1, 2013 and through June 30, 2014,
26    1% of compensation; and

 

 

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1        (2) beginning on July 1, 2014, 2% of compensation.
2    (b) Contributions shall be in the form of a deduction from
3compensation and shall be made notwithstanding that the
4compensation paid in cash to the employee shall be reduced
5thereby below the minimum prescribed by law or regulation. Each
6member is deemed to consent and agree to the deductions from
7compensation provided for in this Article, and shall receipt in
8full for salary or compensation.
9(Source: P.A. 92-14, eff. 6-28-01.)
 
10    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
11    Sec. 14-135.08. To certify required State contributions.
12    (a) To certify to the Governor and to each department, on
13or before November 15 of each year through until November 15,
142011, the required rate for State contributions to the System
15for the next State fiscal year, as determined under subsection
16(b) of Section 14-131. The certification to the Governor under
17this subsection (a) shall include a copy of the actuarial
18recommendations upon which the rate is based and shall
19specifically identify the System's projected State normal cost
20for that fiscal year.
21    (a-5) On or before November 1 of each year, beginning
22November 1, 2012, the Board shall submit to the State Actuary,
23the Governor, and the General Assembly a proposed certification
24of the amount of the required State contribution to the System
25for the next fiscal year, along with all of the actuarial

 

 

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1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year,
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions.
8    On or before January 15, 2013 and each January 15
9thereafter, the Board shall certify to the Governor and the
10General Assembly the amount of the required State contribution
11for the next fiscal year. The certification shall include a
12copy of the actuarial recommendations upon which it is based
13and shall specifically identify the System's projected State
14normal cost for that fiscal year. The Board's certification
15must note any deviations from the State Actuary's recommended
16changes, the reason or reasons for not following the State
17Actuary's recommended changes, and the fiscal impact of not
18following the State Actuary's recommended changes on the
19required State contribution.
20    (b) The certifications under subsections (a) and (a-5)
21shall include an additional amount necessary to pay all
22principal of and interest on those general obligation bonds due
23the next fiscal year authorized by Section 7.2(a) of the
24General Obligation Bond Act and issued to provide the proceeds
25deposited by the State with the System in July 2003,
26representing deposits other than amounts reserved under

 

 

09700SB1673ham010- 70 -LRB097 07605 JDS 73130 a

1Section 7.2(c) of the General Obligation Bond Act. For State
2fiscal year 2005, the Board shall make a supplemental
3certification of the additional amount necessary to pay all
4principal of and interest on those general obligation bonds due
5in State fiscal years 2004 and 2005 authorized by Section
67.2(a) of the General Obligation Bond Act and issued to provide
7the proceeds deposited by the State with the System in July
82003, representing deposits other than amounts reserved under
9Section 7.2(c) of the General Obligation Bond Act, as soon as
10practical after the effective date of this amendatory Act of
11the 93rd General Assembly.
12    On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor and to each department the amount of
14the required State contribution to the System and the required
15rates for State contributions to the System for State fiscal
16year 2005, taking into account the amounts appropriated to and
17received by the System under subsection (d) of Section 7.2 of
18the General Obligation Bond Act.
19    On or before July 1, 2005, the Board shall recalculate and
20recertify to the Governor and to each department the amount of
21the required State contribution to the System and the required
22rates for State contributions to the System for State fiscal
23year 2006, taking into account the changes in required State
24contributions made by this amendatory Act of the 94th General
25Assembly.
26    On or before April 1, 2011, the Board shall recalculate and

 

 

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1recertify to the Governor and to each department the amount of
2the required State contribution to the System for State fiscal
3year 2011, applying the changes made by Public Act 96-889 to
4the System's assets and liabilities as of June 30, 2009 as
5though Public Act 96-889 was approved on that date.
6(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
797-694, eff. 6-18-12.)
 
8    (40 ILCS 5/14-152.1)
9    Sec. 14-152.1. Application and expiration of new benefit
10increases.
11    (a) As used in this Section, "new benefit increase" means
12an increase in the amount of any benefit provided under this
13Article, or an expansion of the conditions of eligibility for
14any benefit under this Article, that results from an amendment
15to this Code that takes effect after June 1, 2005 (the
16effective date of Public Act 94-4). "New benefit increase",
17however, does not include any benefit increase resulting from
18the changes made to this Article by Public Act 96-37 or by this
19amendatory Act of the 97th 96th General Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with
24the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

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1identify and provide for payment to the System of additional
2funding at least sufficient to fund the resulting annual
3increase in cost to the System as it accrues.
4    Every new benefit increase is contingent upon the General
5Assembly providing the additional funding required under this
6subsection. The Commission on Government Forecasting and
7Accountability shall analyze whether adequate additional
8funding has been provided for the new benefit increase and
9shall report its analysis to the Public Pension Division of the
10Department of Financial and Professional Regulation. A new
11benefit increase created by a Public Act that does not include
12the additional funding required under this subsection is null
13and void. If the Public Pension Division determines that the
14additional funding provided for a new benefit increase under
15this subsection is or has become inadequate, it may so certify
16to the Governor and the State Comptroller and, in the absence
17of corrective action by the General Assembly, the new benefit
18increase shall expire at the end of the fiscal year in which
19the certification is made.
20    (d) Every new benefit increase shall expire 5 years after
21its effective date or on such earlier date as may be specified
22in the language enacting the new benefit increase or provided
23under subsection (c). This does not prevent the General
24Assembly from extending or re-creating a new benefit increase
25by law.
26    (e) Except as otherwise provided in the language creating

 

 

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1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 96-37, eff. 7-13-09.)
 
11    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
12    Sec. 15-106. Employer. "Employer": The University of
13Illinois, Southern Illinois University, Chicago State
14University, Eastern Illinois University, Governors State
15University, Illinois State University, Northeastern Illinois
16University, Northern Illinois University, Western Illinois
17University, the State Board of Higher Education, the Illinois
18Mathematics and Science Academy, the University Civil Service
19Merit Board, the Board of Trustees of the State Universities
20Retirement System, the Illinois Community College Board,
21community college boards, any association of community college
22boards organized under Section 3-55 of the Public Community
23College Act, the Board of Examiners established under the
24Illinois Public Accounting Act, and, only during the period for
25which employer contributions required under Section 15-155 are

 

 

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1paid, the following organizations: the alumni associations,
2the foundations and the athletic associations which are
3affiliated with the universities and colleges included in this
4Section as employers. An individual that begins employment
5after the effective date of this amendatory Act of the 97th
6General Assembly with an entity not defined as an employer in
7this Section shall not be deemed an employee for the purposes
8of this Article with respect to that employment and shall not
9be eligible to participate in the System with respect to that
10employment; provided, however, that those individuals who are
11both employed and already participants in the System on the
12effective date of this amendatory Act of the 97th General
13Assembly shall be allowed to continue as participants in the
14System for the duration of that employment.
15    Notwithstanding any provision of law to the contrary, an
16individual who begins employment with any of the following
17employers on or after the effective date of this amendatory Act
18of the 97th General Assembly shall not be deemed an employee
19and shall not be eligible to participate in the System with
20respect to that employment: any association of community
21college boards organized under Section 3-55 of the Public
22Community College Act, the Association of Illinois
23Middle-Grade Schools, the Illinois Association of School
24Administrators, the Illinois Association for Supervision and
25Curriculum Development, the Illinois Principals Association,
26the Illinois Association of School Business Officials, or the

 

 

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1Illinois Special Olympics; provided, however, that those
2individuals who are both employed and already participants in
3the System on the effective date of this amendatory Act of the
497th General Assembly shall be allowed to continue as
5participants in the System for the duration of that employment.
6    A department as defined in Section 14-103.04 is an employer
7for any person appointed by the Governor under the Civil
8Administrative Code of Illinois who is a participating employee
9as defined in Section 15-109. The Department of Central
10Management Services is an employer with respect to persons
11employed by the State Board of Higher Education in positions
12with the Illinois Century Network as of June 30, 2004 who
13remain continuously employed after that date by the Department
14of Central Management Services in positions with the Illinois
15Century Network, the Bureau of Communication and Computer
16Services, or, if applicable, any successor bureau.
17    The cities of Champaign and Urbana shall be considered
18employers, but only during the period for which contributions
19are required to be made under subsection (b-1) of Section
2015-155 and only with respect to individuals described in
21subsection (h) of Section 15-107.
22(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
23Sec. 999.)
 
24    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
25    Sec. 15-107. Employee.

 

 

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1    (a) "Employee" means any member of the educational,
2administrative, secretarial, clerical, mechanical, labor or
3other staff of an employer whose employment is permanent and
4continuous or who is employed in a position in which services
5are expected to be rendered on a continuous basis for at least
64 months or one academic term, whichever is less, who (A)
7receives payment for personal services on a warrant issued
8pursuant to a payroll voucher certified by an employer and
9drawn by the State Comptroller upon the State Treasurer or by
10an employer upon trust, federal or other funds, or (B) is on a
11leave of absence without pay. Employment which is irregular,
12intermittent or temporary shall not be considered continuous
13for purposes of this paragraph.
14    However, a person is not an "employee" if he or she:
15        (1) is a student enrolled in and regularly attending
16    classes in a college or university which is an employer,
17    and is employed on a temporary basis at less than full
18    time;
19        (2) is currently receiving a retirement annuity or a
20    disability retirement annuity under Section 15-153.2 from
21    this System;
22        (3) is on a military leave of absence;
23        (4) is eligible to participate in the Federal Civil
24    Service Retirement System and is currently making
25    contributions to that system based upon earnings paid by an
26    employer;

 

 

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1        (5) is on leave of absence without pay for more than 60
2    days immediately following termination of disability
3    benefits under this Article;
4        (6) is hired after June 30, 1979 as a public service
5    employment program participant under the Federal
6    Comprehensive Employment and Training Act and receives
7    earnings in whole or in part from funds provided under that
8    Act; or
9        (7) is employed on or after July 1, 1991 to perform
10    services that are excluded by subdivision (a)(7)(f) or
11    (a)(19) of Section 210 of the federal Social Security Act
12    from the definition of employment given in that Section (42
13    U.S.C. 410).
14    (b) Any employer may, by filing a written notice with the
15board, exclude from the definition of "employee" all persons
16employed pursuant to a federally funded contract entered into
17after July 1, 1982 with a federal military department in a
18program providing training in military courses to federal
19military personnel on a military site owned by the United
20States Government, if this exclusion is not prohibited by the
21federally funded contract or federal laws or rules governing
22the administration of the contract.
23    (c) Any person appointed by the Governor under the Civil
24Administrative Code of the State is an employee, if he or she
25is a participant in this system on the effective date of the
26appointment.

 

 

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1    (d) A participant on lay-off status under civil service
2rules is considered an employee for not more than 120 days from
3the date of the lay-off.
4    (e) A participant is considered an employee during (1) the
5first 60 days of disability leave, (2) the period, not to
6exceed one year, in which his or her eligibility for disability
7benefits is being considered by the board or reviewed by the
8courts, and (3) the period he or she receives disability
9benefits under the provisions of Section 15-152, workers'
10compensation or occupational disease benefits, or disability
11income under an insurance contract financed wholly or partially
12by the employer.
13    (f) Absences without pay, other than formal leaves of
14absence, of less than 30 calendar days, are not considered as
15an interruption of a person's status as an employee. If such
16absences during any period of 12 months exceed 30 work days,
17the employee status of the person is considered as interrupted
18as of the 31st work day.
19    (g) A staff member whose employment contract requires
20services during an academic term is to be considered an
21employee during the summer and other vacation periods, unless
22he or she declines an employment contract for the succeeding
23academic term or his or her employment status is otherwise
24terminated, and he or she receives no earnings during these
25periods.
26    (h) An individual who was a participating employee employed

 

 

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1in the fire department of the University of Illinois's
2Champaign-Urbana campus immediately prior to the elimination
3of that fire department and who immediately after the
4elimination of that fire department became employed by the fire
5department of the City of Urbana or the City of Champaign shall
6continue to be considered as an employee for purposes of this
7Article for so long as the individual remains employed as a
8firefighter by the City of Urbana or the City of Champaign. The
9individual shall cease to be considered an employee under this
10subsection (h) upon the first termination of the individual's
11employment as a firefighter by the City of Urbana or the City
12of Champaign.
13    (i) An individual who is employed on a full-time basis as
14an officer or employee of a statewide teacher organization that
15serves System participants or an officer of a national teacher
16organization that serves System participants may participate
17in the System and shall be deemed an employee, provided that
18(1) the individual has previously earned creditable service
19under this Article, (2) the individual files with the System an
20irrevocable election to become a participant before the
21effective date of this amendatory Act of the 97th General
22Assembly, (3) the individual does not receive credit for that
23employment under any other Article of this Code, and (4) the
24individual first became a full-time employee of the teacher
25organization and becomes a participant before the effective
26date of this amendatory Act of the 97th General Assembly. An

 

 

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1employee under this subsection (i) is responsible for paying to
2the System both (A) employee contributions based on the actual
3compensation received for service with the teacher
4organization and (B) employer contributions equal to the normal
5costs (as defined in Section 15-155) resulting from that
6service; all or any part of these contributions may be paid on
7the employee's behalf or picked up for tax purposes (if
8authorized under federal law) by the teacher organization.
9    A person who is an employee as defined in this subsection
10(i) may establish service credit for similar employment prior
11to becoming an employee under this subsection by paying to the
12System for that employment the contributions specified in this
13subsection, plus interest at the effective rate from the date
14of service to the date of payment. However, credit shall not be
15granted under this subsection for any such prior employment for
16which the applicant received credit under any other provision
17of this Code, or during which the applicant was on a leave of
18absence under Section 15-113.2.
19    (j) A person employed by the State Board of Higher
20Education in a position with the Illinois Century Network as of
21June 30, 2004 shall be considered to be an employee for so long
22as he or she remains continuously employed after that date by
23the Department of Central Management Services in a position
24with the Illinois Century Network, the Bureau of Communication
25and Computer Services, or, if applicable, any successor bureau
26and meets the requirements of subsection (a).

 

 

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1    (k) In the case of doubt as to whether any person is an
2employee within the meaning of this Section, the decision of
3the Board shall be final.
4(Source: P.A. 97-651, eff. 1-5-12.)
 
5    (40 ILCS 5/15-107.1 new)
6    Sec. 15-107.1. Tier I participant. "Tier I participant": A
7participant under this Article, other than a participant in the
8self-managed plan under Section 15-158.2, who first became a
9member or participant before January 1, 2011 under any
10reciprocal retirement system or pension fund established under
11this Code other than a retirement system or pension fund
12established under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
13    (40 ILCS 5/15-107.2 new)
14    Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former
15Tier I participant who is receiving a retirement annuity.
16    A person does not become a Tier I retiree by virtue of
17receiving a reversionary, survivors, beneficiary, or
18disability annuity.
 
19    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
20    Sec. 15-111. Earnings. "Earnings": An amount paid for
21personal services equal to the sum of the basic compensation
22plus extra compensation for summer teaching, overtime or other
23extra service. For periods for which an employee receives

 

 

09700SB1673ham010- 82 -LRB097 07605 JDS 73130 a

1service credit under subsection (c) of Section 15-113.1 or
2Section 15-113.2, earnings are equal to the basic compensation
3on which contributions are paid by the employee during such
4periods. Compensation for employment which is irregular,
5intermittent and temporary shall not be considered earnings,
6unless the participant is also receiving earnings from the
7employer as an employee under Section 15-107.
8    With respect to transition pay paid by the University of
9Illinois to a person who was a participating employee employed
10in the fire department of the University of Illinois's
11Champaign-Urbana campus immediately prior to the elimination
12of that fire department:
13        (1) "Earnings" includes transition pay paid to the
14    employee on or after the effective date of this amendatory
15    Act of the 91st General Assembly.
16        (2) "Earnings" includes transition pay paid to the
17    employee before the effective date of this amendatory Act
18    of the 91st General Assembly only if (i) employee
19    contributions under Section 15-157 have been withheld from
20    that transition pay or (ii) the employee pays to the System
21    before January 1, 2001 an amount representing employee
22    contributions under Section 15-157 on that transition pay.
23    Employee contributions under item (ii) may be paid in a
24    lump sum, by withholding from additional transition pay
25    accruing before January 1, 2001, or in any other manner
26    approved by the System. Upon payment of the employee

 

 

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1    contributions on transition pay, the corresponding
2    employer contributions become an obligation of the State.
3    Notwithstanding any other provision of this Code, the
4earnings of a Tier I participant for the purposes of this Code
5shall not exceed, for periods of service on or after the
6effective date of this amendatory Act of the 97th General
7Assembly, the greater of (i) the annual contribution and
8benefit base established for the applicable year by the
9Commissioner of Social Security under the federal Social
10Security Act or (ii) the annual earnings of the participant
11during the 365 days immediately preceding the effective date of
12this Section; except that this limitation does not apply to a
13participant's earnings that are determined under an employment
14contract or collective bargaining agreement that is in effect
15on the effective date of this amendatory Act of the 97th
16General Assembly and has not been amended or renewed after that
17date.
18(Source: P.A. 91-887, eff. 7-6-00.)
 
19    (40 ILCS 5/15-113.2)  (from Ch. 108 1/2, par. 15-113.2)
20    Sec. 15-113.2. Service for leaves of absence. "Service for
21leaves of absence" includes those periods of leaves of absence
22at less than 50% pay, except military leave and periods of
23disability leave in excess of 60 days, for which the employee
24pays the contributions required under Section 15-157 in
25accordance with rules prescribed by the board based upon the

 

 

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1employee's basic compensation on the date the leave begins, or
2in the case of leave for service with a teacher organization,
3based upon the actual compensation received by the employee for
4such service after January 26, 1988, if the employee so elects
5within 30 days of that date or the date the leave for service
6with a teacher organization begins, whichever is later;
7provided that the employee (1) returns to employment covered by
8this system at the expiration of the leave, or within 30 days
9after the termination of a disability which occurs during the
10leave and continues this employment at a percentage of time
11equal to or greater than the percentage of time immediately
12preceding the leave of absence for at least 8 consecutive
13months or a period equal to the period of the leave, whichever
14is less, or (2) is precluded from meeting the foregoing
15conditions because of disability or death. If service credit is
16denied because the employee fails to meet these conditions, the
17contributions covering the leave of absence shall be refunded
18without interest. The return to employment condition does not
19apply if the leave of absence is for service with a teacher
20organization.
21    Service credit provided under this Section shall not exceed
223 years in any period of 10 years, unless the employee is on
23special leave granted by the employer for service with a
24teacher organization. Commencing with the fourth year in any
25period of 10 years, a participant on such special leave is also
26required to pay employer contributions equal to the normal cost

 

 

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1as defined in Section 15-155, based upon the employee's basic
2compensation on the date the leave begins, or based upon the
3actual compensation received by the employee for service with a
4teacher organization if the employee has so elected.
5    Notwithstanding any other provision of this Article, a
6participant shall not be eligible to make contributions or
7receive service credit for a leave of absence for service with
8a teacher organization if that leave of absence for service
9with a teacher organization begins on or after the effective
10date of this amendatory Act of the 97th General Assembly.
11(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
12    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
13    Sec. 15-136. Retirement annuities - Amount. The provisions
14of this Section 15-136 apply only to those participants who are
15participating in the traditional benefit package or the
16portable benefit package and do not apply to participants who
17are participating in the self-managed plan.
18    (a) The amount of a participant's retirement annuity,
19expressed in the form of a single-life annuity, shall be
20determined by whichever of the following rules is applicable
21and provides the largest annuity:
22    Rule 1: The retirement annuity shall be 1.67% of final rate
23of earnings for each of the first 10 years of service, 1.90%
24for each of the next 10 years of service, 2.10% for each year
25of service in excess of 20 but not exceeding 30, and 2.30% for

 

 

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1each year in excess of 30; or for persons who retire on or
2after January 1, 1998, 2.2% of the final rate of earnings for
3each year of service.
4    Rule 2: The retirement annuity shall be the sum of the
5following, determined from amounts credited to the participant
6in accordance with the actuarial tables and the effective rate
7of interest in effect at the time the retirement annuity
8begins:
9        (i) the normal annuity which can be provided on an
10    actuarially equivalent basis, by the accumulated normal
11    contributions as of the date the annuity begins;
12        (ii) an annuity from employer contributions of an
13    amount equal to that which can be provided on an
14    actuarially equivalent basis from the accumulated normal
15    contributions made by the participant under Section
16    15-113.6 and Section 15-113.7 plus 1.4 times all other
17    accumulated normal contributions made by the participant;
18    and
19        (iii) the annuity that can be provided on an
20    actuarially equivalent basis from the entire contribution
21    made by the participant under Section 15-113.3.
22    For the purpose of calculating an annuity under this Rule
232, the contribution required under subsection (c-5) of Section
2415-157 shall not be considered when determining the
25participant's accumulated normal contributions under clause
26(i) or the employer contribution under clause (ii).

 

 

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1    With respect to a police officer or firefighter who retires
2on or after August 14, 1998, the accumulated normal
3contributions taken into account under clauses (i) and (ii) of
4this Rule 2 shall include the additional normal contributions
5made by the police officer or firefighter under Section
615-157(a).
7    The amount of a retirement annuity calculated under this
8Rule 2 shall be computed solely on the basis of the
9participant's accumulated normal contributions, as specified
10in this Rule and defined in Section 15-116. Neither an employee
11or employer contribution for early retirement under Section
1215-136.2 nor any other employer contribution shall be used in
13the calculation of the amount of a retirement annuity under
14this Rule 2.
15    This amendatory Act of the 91st General Assembly is a
16clarification of existing law and applies to every participant
17and annuitant without regard to whether status as an employee
18terminates before the effective date of this amendatory Act.
19    This Rule 2 does not apply to a person who first becomes an
20employee under this Article on or after July 1, 2005.
21    Rule 3: The retirement annuity of a participant who is
22employed at least one-half time during the period on which his
23or her final rate of earnings is based, shall be equal to the
24participant's years of service not to exceed 30, multiplied by
25(1) $96 if the participant's final rate of earnings is less
26than $3,500, (2) $108 if the final rate of earnings is at least

 

 

09700SB1673ham010- 88 -LRB097 07605 JDS 73130 a

1$3,500 but less than $4,500, (3) $120 if the final rate of
2earnings is at least $4,500 but less than $5,500, (4) $132 if
3the final rate of earnings is at least $5,500 but less than
4$6,500, (5) $144 if the final rate of earnings is at least
5$6,500 but less than $7,500, (6) $156 if the final rate of
6earnings is at least $7,500 but less than $8,500, (7) $168 if
7the final rate of earnings is at least $8,500 but less than
8$9,500, and (8) $180 if the final rate of earnings is $9,500 or
9more, except that the annuity for those persons having made an
10election under Section 15-154(a-1) shall be calculated and
11payable under the portable retirement benefit program pursuant
12to the provisions of Section 15-136.4.
13    Rule 4: A participant who is at least age 50 and has 25 or
14more years of service as a police officer or firefighter, and a
15participant who is age 55 or over and has at least 20 but less
16than 25 years of service as a police officer or firefighter,
17shall be entitled to a retirement annuity of 2 1/4% of the
18final rate of earnings for each of the first 10 years of
19service as a police officer or firefighter, 2 1/2% for each of
20the next 10 years of service as a police officer or
21firefighter, and 2 3/4% for each year of service as a police
22officer or firefighter in excess of 20. The retirement annuity
23for all other service shall be computed under Rule 1.
24    For purposes of this Rule 4, a participant's service as a
25firefighter shall also include the following:
26        (i) service that is performed while the person is an

 

 

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1    employee under subsection (h) of Section 15-107; and
2        (ii) in the case of an individual who was a
3    participating employee employed in the fire department of
4    the University of Illinois's Champaign-Urbana campus
5    immediately prior to the elimination of that fire
6    department and who immediately after the elimination of
7    that fire department transferred to another job with the
8    University of Illinois, service performed as an employee of
9    the University of Illinois in a position other than police
10    officer or firefighter, from the date of that transfer
11    until the employee's next termination of service with the
12    University of Illinois.
13    Rule 5: The retirement annuity of a participant who elected
14early retirement under the provisions of Section 15-136.2 and
15who, on or before February 16, 1995, brought administrative
16proceedings pursuant to the administrative rules adopted by the
17System to challenge the calculation of his or her retirement
18annuity shall be the sum of the following, determined from
19amounts credited to the participant in accordance with the
20actuarial tables and the prescribed rate of interest in effect
21at the time the retirement annuity begins:
22        (i) the normal annuity which can be provided on an
23    actuarially equivalent basis, by the accumulated normal
24    contributions as of the date the annuity begins; and
25        (ii) an annuity from employer contributions of an
26    amount equal to that which can be provided on an

 

 

09700SB1673ham010- 90 -LRB097 07605 JDS 73130 a

1    actuarially equivalent basis from the accumulated normal
2    contributions made by the participant under Section
3    15-113.6 and Section 15-113.7 plus 1.4 times all other
4    accumulated normal contributions made by the participant;
5    and
6        (iii) an annuity which can be provided on an
7    actuarially equivalent basis from the employee
8    contribution for early retirement under Section 15-136.2,
9    and an annuity from employer contributions of an amount
10    equal to that which can be provided on an actuarially
11    equivalent basis from the employee contribution for early
12    retirement under Section 15-136.2.
13    In no event shall a retirement annuity under this Rule 5 be
14lower than the amount obtained by adding (1) the monthly amount
15obtained by dividing the combined employee and employer
16contributions made under Section 15-136.2 by the System's
17annuity factor for the age of the participant at the beginning
18of the annuity payment period and (2) the amount equal to the
19participant's annuity if calculated under Rule 1, reduced under
20Section 15-136(b) as if no contributions had been made under
21Section 15-136.2.
22    With respect to a participant who is qualified for a
23retirement annuity under this Rule 5 whose retirement annuity
24began before the effective date of this amendatory Act of the
2591st General Assembly, and for whom an employee contribution
26was made under Section 15-136.2, the System shall recalculate

 

 

09700SB1673ham010- 91 -LRB097 07605 JDS 73130 a

1the retirement annuity under this Rule 5 and shall pay any
2additional amounts due in the manner provided in Section
315-186.1 for benefits mistakenly set too low.
4    The amount of a retirement annuity calculated under this
5Rule 5 shall be computed solely on the basis of those
6contributions specifically set forth in this Rule 5. Except as
7provided in clause (iii) of this Rule 5, neither an employee
8nor employer contribution for early retirement under Section
915-136.2, nor any other employer contribution, shall be used in
10the calculation of the amount of a retirement annuity under
11this Rule 5.
12    The General Assembly has adopted the changes set forth in
13Section 25 of this amendatory Act of the 91st General Assembly
14in recognition that the decision of the Appellate Court for the
15Fourth District in Mattis v. State Universities Retirement
16System et al. might be deemed to give some right to the
17plaintiff in that case. The changes made by Section 25 of this
18amendatory Act of the 91st General Assembly are a legislative
19implementation of the decision of the Appellate Court for the
20Fourth District in Mattis v. State Universities Retirement
21System et al. with respect to that plaintiff.
22    The changes made by Section 25 of this amendatory Act of
23the 91st General Assembly apply without regard to whether the
24person is in service as an employee on or after its effective
25date.
26    (b) The retirement annuity provided under Rules 1 and 3

 

 

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1above shall be reduced by 1/2 of 1% for each month the
2participant is under age 60 at the time of retirement. However,
3this reduction shall not apply in the following cases:
4        (1) For a disabled participant whose disability
5    benefits have been discontinued because he or she has
6    exhausted eligibility for disability benefits under clause
7    (6) of Section 15-152;
8        (2) For a participant who has at least the number of
9    years of service required to retire at any age under
10    subsection (a) of Section 15-135; or
11        (3) For that portion of a retirement annuity which has
12    been provided on account of service of the participant
13    during periods when he or she performed the duties of a
14    police officer or firefighter, if these duties were
15    performed for at least 5 years immediately preceding the
16    date the retirement annuity is to begin.
17    (c) The maximum retirement annuity provided under Rules 1,
182, 4, and 5 shall be the lesser of (1) the annual limit of
19benefits as specified in Section 415 of the Internal Revenue
20Code of 1986, as such Section may be amended from time to time
21and as such benefit limits shall be adjusted by the
22Commissioner of Internal Revenue, and (2) 80% of final rate of
23earnings.
24    (d) Subject to the provisions of subsections (d-1) and
25(d-2), an An annuitant whose status as an employee terminates
26after August 14, 1969 shall receive automatic increases in his

 

 

09700SB1673ham010- 93 -LRB097 07605 JDS 73130 a

1or her retirement annuity as follows:
2    Effective January 1 immediately following the date the
3retirement annuity begins, the annuitant shall receive an
4increase in his or her monthly retirement annuity of 0.125% of
5the monthly retirement annuity provided under Rule 1, Rule 2,
6Rule 3, Rule 4, or Rule 5, contained in this Section,
7multiplied by the number of full months which elapsed from the
8date the retirement annuity payments began to January 1, 1972,
9plus 0.1667% of such annuity, multiplied by the number of full
10months which elapsed from January 1, 1972, or the date the
11retirement annuity payments began, whichever is later, to
12January 1, 1978, plus 0.25% of such annuity multiplied by the
13number of full months which elapsed from January 1, 1978, or
14the date the retirement annuity payments began, whichever is
15later, to the effective date of the increase.
16    The annuitant shall receive an increase in his or her
17monthly retirement annuity on each January 1 thereafter during
18the annuitant's life of 3% of the monthly annuity provided
19under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
20this Section. The change made under this subsection by P.A.
2181-970 is effective January 1, 1980 and applies to each
22annuitant whose status as an employee terminates before or
23after that date.
24    Beginning January 1, 1990 and except as provided in
25subsections (d-1) and (d-2), all automatic annual increases
26payable under this Section shall be calculated as a percentage

 

 

09700SB1673ham010- 94 -LRB097 07605 JDS 73130 a

1of the total annuity payable at the time of the increase,
2including all increases previously granted under this Article.
3    The change made in this subsection by P.A. 85-1008 is
4effective January 26, 1988, and is applicable without regard to
5whether status as an employee terminated before that date.
6    (d-1) Notwithstanding any other provision of this Article,
7for a Tier I retiree, the amount of each automatic increase in
8retirement annuity occurring on or after the effective date of
9this amendatory Act of the 97th General Assembly shall be the
10lesser of (i) $750 or (ii) 3% of the total annuity payable at
11the time of the increase, including previous increases granted.
12    (d-2) Notwithstanding any other provision of this Article,
13the System shall not grant any new or additional automatic
14increase in retirement annuity to a Tier I retiree on or after
15the effective date of this amendatory Act of the 97th General
16Assembly and before January 1, 2020.
17    Notwithstanding any other provision of this Article, the
18System shall not grant any new or additional automatic increase
19in retirement annuity to a Tier I retiree who has not yet
20attained the age of 67, regardless of any age augmentation
21granted under this Article as an early retirement incentive.
22    If on the effective date of this amendatory Act of the 97th
23General Assembly a Tier I retiree has already received an
24annual increase under this Section but does not yet meet the
25new eligibility requirements of this subsection, the annual
26increases already received shall continue in force, but no

 

 

09700SB1673ham010- 95 -LRB097 07605 JDS 73130 a

1additional annual increase shall be granted until the Tier I
2retiree meets the new eligibility requirements.
3    (d-3) Notwithstanding Section 1-103.1, subsections (d-1)
4and (d-2) apply without regard to whether or not the Tier I
5retiree is in active service under this Article on or after the
6effective date of this amendatory Act of the 97th General
7Assembly.
8    (e) If, on January 1, 1987, or the date the retirement
9annuity payment period begins, whichever is later, the sum of
10the retirement annuity provided under Rule 1 or Rule 2 of this
11Section and the automatic annual increases provided under the
12preceding subsection or Section 15-136.1, amounts to less than
13the retirement annuity which would be provided by Rule 3, the
14retirement annuity shall be increased as of January 1, 1987, or
15the date the retirement annuity payment period begins,
16whichever is later, to the amount which would be provided by
17Rule 3 of this Section. Such increased amount shall be
18considered as the retirement annuity in determining benefits
19provided under other Sections of this Article. This paragraph
20applies without regard to whether status as an employee
21terminated before the effective date of this amendatory Act of
221987, provided that the annuitant was employed at least
23one-half time during the period on which the final rate of
24earnings was based.
25    (f) A participant is entitled to such additional annuity as
26may be provided on an actuarially equivalent basis, by any

 

 

09700SB1673ham010- 96 -LRB097 07605 JDS 73130 a

1accumulated additional contributions to his or her credit.
2However, the additional contributions made by the participant
3toward the automatic increases in annuity provided under this
4Section and the contributions made under subsection (c-5) of
5Section 15-157 by this amendatory Act of the 97th General
6Assembly shall not be taken into account in determining the
7amount of such additional annuity.
8    (g) If, (1) by law, a function of a governmental unit, as
9defined by Section 20-107 of this Code, is transferred in whole
10or in part to an employer, and (2) a participant transfers
11employment from such governmental unit to such employer within
126 months after the transfer of the function, and (3) the sum of
13(A) the annuity payable to the participant under Rule 1, 2, or
143 of this Section (B) all proportional annuities payable to the
15participant by all other retirement systems covered by Article
1620, and (C) the initial primary insurance amount to which the
17participant is entitled under the Social Security Act, is less
18than the retirement annuity which would have been payable if
19all of the participant's pension credits validated under
20Section 20-109 had been validated under this system, a
21supplemental annuity equal to the difference in such amounts
22shall be payable to the participant.
23    (h) On January 1, 1981, an annuitant who was receiving a
24retirement annuity on or before January 1, 1971 shall have his
25or her retirement annuity then being paid increased $1 per
26month for each year of creditable service. On January 1, 1982,

 

 

09700SB1673ham010- 97 -LRB097 07605 JDS 73130 a

1an annuitant whose retirement annuity began on or before
2January 1, 1977, shall have his or her retirement annuity then
3being paid increased $1 per month for each year of creditable
4service.
5    (i) On January 1, 1987, any annuitant whose retirement
6annuity began on or before January 1, 1977, shall have the
7monthly retirement annuity increased by an amount equal to 8
8per year of creditable service times the number of years that
9have elapsed since the annuity began.
10(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
11    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
12    Sec. 15-155. Employer contributions.
13    (a) The State of Illinois shall make contributions by
14appropriations of amounts which, together with the other
15employer contributions from trust, federal, and other funds,
16employee contributions, income from investments, and other
17income of this System, will be sufficient to meet the cost of
18maintaining and administering the System on a 100% 90% funded
19basis in accordance with actuarial recommendations by the end
20of State fiscal year 2043.
21    The Board shall determine the amount of State contributions
22required for each fiscal year on the basis of the actuarial
23tables and other assumptions adopted by the Board and the
24recommendations of the actuary, using the formula in subsection
25(a-1).

 

 

09700SB1673ham010- 98 -LRB097 07605 JDS 73130 a

1    (a-1) For State fiscal years 2014 through 2043, the minimum
2contribution to the System to be made by the State for each
3fiscal year shall be an amount determined by the System to be
4equal to the sum of (1) the State's portion of the projected
5normal cost for that fiscal year, plus (2) an amount sufficient
6to bring the total assets of the System up to 100% of the total
7actuarial liabilities of the System by the end of State fiscal
8year 2043. In making these determinations, the required State
9contribution shall be calculated each year as a level
10percentage of payroll over the years remaining to and including
11fiscal year 2043 and shall be determined under the projected
12unit credit actuarial cost method.
13    For State fiscal year 2044 and thereafter, the minimum
14State contribution for each fiscal year shall be the amount
15needed to maintain the total assets of the System at 100% of
16the total actuarial liabilities of the System.
17    For State fiscal years 2012 and 2013 through 2045, the
18minimum contribution to the System to be made by the State for
19each fiscal year shall be an amount determined by the System to
20be sufficient to bring the total assets of the System up to 90%
21of the total actuarial liabilities of the System by the end of
22State fiscal year 2045. In making these determinations, the
23required State contribution shall be calculated each year as a
24level percentage of payroll over the years remaining to and
25including fiscal year 2045 and shall be determined under the
26projected unit credit actuarial cost method.

 

 

09700SB1673ham010- 99 -LRB097 07605 JDS 73130 a

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

 

 

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1applicable.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2011 is
4the amount recertified by the System on or before April 1, 2011
5pursuant to Section 15-165 and shall be made from the State
6Pensions Fund and proceeds of bonds sold in fiscal year 2011
7pursuant to Section 7.2 of the General Obligation Bond Act,
8less (i) the pro rata share of bond sale expenses determined by
9the System's share of total bond proceeds, (ii) any amounts
10received from the General Revenue Fund in fiscal year 2011, and
11(iii) any reduction in bond proceeds due to the issuance of
12discounted bonds, if applicable.
13    Beginning in State fiscal year 2046, the minimum State
14contribution for each fiscal year shall be the amount needed to
15maintain the total assets of the System at 90% of the total
16actuarial liabilities of the System.
17    Amounts received by the System pursuant to Section 25 of
18the Budget Stabilization Act or Section 8.12 of the State
19Finance Act in any fiscal year do not reduce and do not
20constitute payment of any portion of the minimum State
21contribution required under this Article in that fiscal year.
22Such amounts shall not reduce, and shall not be included in the
23calculation of, the required State contributions under this
24Article in any future year until the System has reached a
25funding ratio of at least 100% 90%. A reference in this Article
26to the "required State contribution" or any substantially

 

 

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1similar term does not include or apply to any amounts payable
2to the System under Section 25 of the Budget Stabilization Act.
3    Notwithstanding any other provision of this Code or the
4Budget Stabilization Act, amounts transferred to the System
5pursuant to the Budget Stabilization Act after the effective
6date of this amendatory Act of the 97th General Assembly do not
7reduce and do not constitute payment of any portion of the
8required State contribution under this Article in that fiscal
9year. Such amounts shall not reduce, and shall not be included
10in the calculation of, the required State contributions under
11this Article in any future year until the System has received
12payment of contributions pursuant to the Budget Stabilization
13Act.
14    Notwithstanding any other provision of this Section, the
15required State contribution for State fiscal year 2005 and for
16fiscal year 2008 and each fiscal year thereafter through State
17fiscal year 2013, as calculated under this Section and
18certified under Section 15-165, shall not exceed an amount
19equal to (i) the amount of the required State contribution that
20would have been calculated under this Section for that fiscal
21year if the System had not received any payments under
22subsection (d) of Section 7.2 of the General Obligation Bond
23Act, minus (ii) the portion of the State's total debt service
24payments for that fiscal year on the bonds issued in fiscal
25year 2003 for the purposes of that Section 7.2, as determined
26and certified by the Comptroller, that is the same as the

 

 

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1System's portion of the total moneys distributed under
2subsection (d) of Section 7.2 of the General Obligation Bond
3Act. In determining this maximum for State fiscal years 2008
4through 2010, however, the amount referred to in item (i) shall
5be increased, as a percentage of the applicable employee
6payroll, in equal increments calculated from the sum of the
7required State contribution for State fiscal year 2007 plus the
8applicable portion of the State's total debt service payments
9for fiscal year 2007 on the bonds issued in fiscal year 2003
10for the purposes of Section 7.2 of the General Obligation Bond
11Act, so that, by State fiscal year 2011, the State is
12contributing at the rate otherwise required under this Section.
13    (b) If an employee is paid from trust or federal funds, the
14employer shall pay to the Board contributions from those funds
15which are sufficient to cover the accruing normal costs on
16behalf of the employee. However, universities having employees
17who are compensated out of local auxiliary funds, income funds,
18or service enterprise funds are not required to pay such
19contributions on behalf of those employees. The local auxiliary
20funds, income funds, and service enterprise funds of
21universities shall not be considered trust funds for the
22purpose of this Article, but funds of alumni associations,
23foundations, and athletic associations which are affiliated
24with the universities included as employers under this Article
25and other employers which do not receive State appropriations
26are considered to be trust funds for the purpose of this

 

 

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1Article.
2    (b-1) The City of Urbana and the City of Champaign shall
3each make employer contributions to this System for their
4respective firefighter employees who participate in this
5System pursuant to subsection (h) of Section 15-107. The rate
6of contributions to be made by those municipalities shall be
7determined annually by the Board on the basis of the actuarial
8assumptions adopted by the Board and the recommendations of the
9actuary, and shall be expressed as a percentage of salary for
10each such employee. The Board shall certify the rate to the
11affected municipalities as soon as may be practical. The
12employer contributions required under this subsection shall be
13remitted by the municipality to the System at the same time and
14in the same manner as employee contributions.
15    (c) Through State fiscal year 1995: The total employer
16contribution shall be apportioned among the various funds of
17the State and other employers, whether trust, federal, or other
18funds, in accordance with actuarial procedures approved by the
19Board. State of Illinois contributions for employers receiving
20State appropriations for personal services shall be payable
21from appropriations made to the employers or to the System. The
22contributions for Class I community colleges covering earnings
23other than those paid from trust and federal funds, shall be
24payable solely from appropriations to the Illinois Community
25College Board or the System for employer contributions.
26    (d) Beginning in State fiscal year 1996, the required State

 

 

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

 

 

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1of 6%. This present value shall be computed by the System on
2the basis of the actuarial assumptions and tables used in the
3most recent actuarial valuation of the System that is available
4at the time of the computation. The System may require the
5employer to provide any pertinent information or
6documentation.
7    Whenever it determines that a payment is or may be required
8under this subsection (g), the System shall calculate the
9amount of the payment and bill the employer for that amount.
10The bill shall specify the calculations used to determine the
11amount due. If the employer disputes the amount of the bill, it
12may, within 30 days after receipt of the bill, apply to the
13System in writing for a recalculation. The application must
14specify in detail the grounds of the dispute and, if the
15employer asserts that the calculation is subject to subsection
16(h) or (i) of this Section, must include an affidavit setting
17forth and attesting to all facts within the employer's
18knowledge that are pertinent to the applicability of subsection
19(h) or (i). Upon receiving a timely application for
20recalculation, the System shall review the application and, if
21appropriate, recalculate the amount due.
22    The employer contributions required under this subsection
23(g) (f) may be paid in the form of a lump sum within 90 days
24after receipt of the bill. If the employer contributions are
25not paid within 90 days after receipt of the bill, then
26interest will be charged at a rate equal to the System's annual

 

 

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1actuarially assumed rate of return on investment compounded
2annually from the 91st day after receipt of the bill. Payments
3must be concluded within 3 years after the employer's receipt
4of the bill.
5    (h) This subsection (h) applies only to payments made or
6salary increases given on or after June 1, 2005 but before July
71, 2011. The changes made by Public Act 94-1057 shall not
8require the System to refund any payments received before July
931, 2006 (the effective date of Public Act 94-1057).
10    When assessing payment for any amount due under subsection
11(g), the System shall exclude earnings increases paid to
12participants under contracts or collective bargaining
13agreements entered into, amended, or renewed before June 1,
142005.
15    When assessing payment for any amount due under subsection
16(g), the System shall exclude earnings increases paid to a
17participant at a time when the participant is 10 or more years
18from retirement eligibility under Section 15-135.
19    When assessing payment for any amount due under subsection
20(g), the System shall exclude earnings increases resulting from
21overload work, including a contract for summer teaching, or
22overtime when the employer has certified to the System, and the
23System has approved the certification, that: (i) in the case of
24overloads (A) the overload work is for the sole purpose of
25academic instruction in excess of the standard number of
26instruction hours for a full-time employee occurring during the

 

 

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1academic year that the overload is paid and (B) the earnings
2increases are equal to or less than the rate of pay for
3academic instruction computed using the participant's current
4salary rate and work schedule; and (ii) in the case of
5overtime, the overtime was necessary for the educational
6mission.
7    When assessing payment for any amount due under subsection
8(g), the System shall exclude any earnings increase resulting
9from (i) a promotion for which the employee moves from one
10classification to a higher classification under the State
11Universities Civil Service System, (ii) a promotion in academic
12rank for a tenured or tenure-track faculty position, or (iii) a
13promotion that the Illinois Community College Board has
14recommended in accordance with subsection (k) of this Section.
15These earnings increases shall be excluded only if the
16promotion is to a position that has existed and been filled by
17a member for no less than one complete academic year and the
18earnings increase as a result of the promotion is an increase
19that results in an amount no greater than the average salary
20paid for other similar positions.
21    (i) When assessing payment for any amount due under
22subsection (g), the System shall exclude any salary increase
23described in subsection (h) of this Section given on or after
24July 1, 2011 but before July 1, 2014 under a contract or
25collective bargaining agreement entered into, amended, or
26renewed on or after June 1, 2005 but before July 1, 2011.

 

 

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

 

 

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1The Illinois Community College Board shall file a copy of its
2findings with the System. The System shall consider the
3findings of the Illinois Community College Board when making
4determinations under this Section. The System shall not exclude
5any earnings increases resulting from a promotion when the
6promotion was not submitted by a community college. Nothing in
7this subsection (k) shall require any community college to
8submit any information to the Community College Board.
9    (l) For purposes of determining the required State
10contribution to the System, the value of the System's assets
11shall be equal to the actuarial value of the System's assets,
12which shall be calculated as follows:
13    As of June 30, 2008, the actuarial value of the System's
14assets shall be equal to the market value of the assets as of
15that date. In determining the actuarial value of the System's
16assets for fiscal years after June 30, 2008, any actuarial
17gains or losses from investment return incurred in a fiscal
18year shall be recognized in equal annual amounts over the
195-year period following that fiscal year.
20    (m) For purposes of determining the required State
21contribution to the system for a particular year, the actuarial
22value of assets shall be assumed to earn a rate of return equal
23to the system's actuarially assumed rate of return.
24(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
267-13-12; revised 10-17-12.)
 

 

 

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1    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)
2    Sec. 15-156. Obligations of State; funding guarantees.
3    (a) The payment of (1) the required State contributions,
4(2) all benefits granted under this system and (3) all expenses
5in connection with the administration and operation thereof are
6obligations of the State of Illinois to the extent specified in
7this Article. The accumulated employee normal, additional and
8survivors insurance contributions credited to the accounts of
9active and inactive participants shall not be used to pay the
10State's share of the obligations.
11    (b) Beginning July 1, 2013, the State shall be
12contractually obligated to contribute to the System under
13Section 15-155 in each State fiscal year an amount not less
14than the sum of (i) the State's normal cost for that year and
15(ii) the portion of the unfunded accrued liability assigned to
16that year by law in accordance with a schedule that distributes
17payments equitably over a reasonable period of time and in
18accordance with accepted actuarial practices. The obligations
19created under this subsection (b) are contractual obligations
20protected and enforceable under Article I, Section 16 and
21Article XIII, Section 5 of the Illinois Constitution.
22    Notwithstanding any other provision of law, if the State
23fails to pay in a State fiscal year the amount guaranteed under
24this subsection, the System may bring a mandamus action in the
25Circuit Court of Sangamon County to compel the State to make

 

 

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1that payment, irrespective of other remedies that may be
2available to the System. In ordering the State to make the
3required payment, the court may order a reasonable payment
4schedule to enable the State to make the required payment
5without significantly imperiling the public health, safety, or
6welfare.
7(Source: P.A. 83-1440.)
 
8    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
9    Sec. 15-157. Employee Contributions.
10    (a) Each participating employee shall make contributions
11towards the retirement benefits payable under the retirement
12program applicable to the employee from each payment of
13earnings applicable to employment under this system on and
14after the date of becoming a participant as follows: Prior to
15September 1, 1949, 3 1/2% of earnings; from September 1, 1949
16to August 31, 1955, 5%; from September 1, 1955 to August 31,
171969, 6%; from September 1, 1969, 6 1/2%. These contributions
18are to be considered as normal contributions for purposes of
19this Article.
20    Each participant who is a police officer or firefighter
21shall make normal contributions of 8% of each payment of
22earnings applicable to employment as a police officer or
23firefighter under this system on or after September 1, 1981,
24unless he or she files with the board within 60 days after the
25effective date of this amendatory Act of 1991 or 60 days after

 

 

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1the board receives notice that he or she is employed as a
2police officer or firefighter, whichever is later, a written
3notice waiving the retirement formula provided by Rule 4 of
4Section 15-136. This waiver shall be irrevocable. If a
5participant had met the conditions set forth in Section
615-132.1 prior to the effective date of this amendatory Act of
71991 but failed to make the additional normal contributions
8required by this paragraph, he or she may elect to pay the
9additional contributions plus compound interest at the
10effective rate. If such payment is received by the board, the
11service shall be considered as police officer service in
12calculating the retirement annuity under Rule 4 of Section
1315-136. While performing service described in clause (i) or
14(ii) of Rule 4 of Section 15-136, a participating employee
15shall be deemed to be employed as a firefighter for the purpose
16of determining the rate of employee contributions under this
17Section.
18    (b) Starting September 1, 1969, each participating
19employee shall make additional contributions of 1/2 of 1% of
20earnings to finance a portion of the cost of the annual
21increases in retirement annuity provided under Section 15-136,
22except that with respect to participants in the self-managed
23plan this additional contribution shall be used to finance the
24benefits obtained under that retirement program.
25    (c) In addition to the amounts described in subsections (a)
26and (b) of this Section, each participating employee shall make

 

 

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1contributions of 1% of earnings applicable under this system on
2and after August 1, 1959. The contributions made under this
3subsection (c) shall be considered as survivor's insurance
4contributions for purposes of this Article if the employee is
5covered under the traditional benefit package, and such
6contributions shall be considered as additional contributions
7for purposes of this Article if the employee is participating
8in the self-managed plan or has elected to participate in the
9portable benefit package and has completed the applicable
10one-year waiting period. Contributions in excess of $80 during
11any fiscal year beginning before August 31, 1969 and in excess
12of $120 during any fiscal year thereafter until September 1,
131971 shall be considered as additional contributions for
14purposes of this Article.
15    (c-5) In addition to the contributions otherwise required
16under this Article, each Tier I participant shall also make the
17following contributions toward the retirement benefits payable
18under the retirement program applicable to the employee from
19each payment of earnings applicable to employment under this
20system:
21        (1) beginning July 1, 2013 and through June 30, 2014,
22    1% of earnings; and
23        (2) beginning on July 1, 2014, 2% of earnings.
24    Except as otherwise specified, these contributions are to
25be considered as normal contributions for purposes of this
26Article.

 

 

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1    (d) If the board by board rule so permits and subject to
2such conditions and limitations as may be specified in its
3rules, a participant may make other additional contributions of
4such percentage of earnings or amounts as the participant shall
5elect in a written notice thereof received by the board.
6    (e) That fraction of a participant's total accumulated
7normal contributions, the numerator of which is equal to the
8number of years of service in excess of that which is required
9to qualify for the maximum retirement annuity, and the
10denominator of which is equal to the total service of the
11participant, shall be considered as accumulated additional
12contributions. The determination of the applicable maximum
13annuity and the adjustment in contributions required by this
14provision shall be made as of the date of the participant's
15retirement.
16    (f) Notwithstanding the foregoing, a participating
17employee shall not be required to make contributions under this
18Section after the date upon which continuance of such
19contributions would otherwise cause his or her retirement
20annuity to exceed the maximum retirement annuity as specified
21in clause (1) of subsection (c) of Section 15-136.
22    (g) A participating employee may make contributions for the
23purchase of service credit under this Article.
24(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
25eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
2690-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 

 

 

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1    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
2    Sec. 15-165. To certify amounts and submit vouchers.
3    (a) The Board shall certify to the Governor on or before
4November 15 of each year through until November 15, 2011 the
5appropriation required from State funds for the purposes of
6this System for the following fiscal year. The certification
7under this subsection (a) shall include a copy of the actuarial
8recommendations upon which it is based and shall specifically
9identify the System's projected State normal cost for that
10fiscal year and the projected State cost for the self-managed
11plan for that fiscal year.
12    On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18    On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 94th General Assembly.
23    On or before April 1, 2011, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011, applying

 

 

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1the changes made by Public Act 96-889 to the System's assets
2and liabilities as of June 30, 2009 as though Public Act 96-889
3was approved on that date.
4    (a-5) On or before November 1 of each year, beginning
5November 1, 2012, the Board shall submit to the State Actuary,
6the Governor, and the General Assembly a proposed certification
7of the amount of the required State contribution to the System
8for the next fiscal year, along with all of the actuarial
9assumptions, calculations, and data upon which that proposed
10certification is based. On or before January 1 of each year,
11beginning January 1, 2013, the State Actuary shall issue a
12preliminary report concerning the proposed certification and
13identifying, if necessary, recommended changes in actuarial
14assumptions that the Board must consider before finalizing its
15certification of the required State contributions.
16    On or before January 15, 2013 and each January 15
17thereafter, the Board shall certify to the Governor and the
18General Assembly the amount of the required State contribution
19for the next fiscal year. The certification shall include a
20copy of the actuarial recommendations upon which it is based
21and shall specifically identify the System's projected State
22normal cost for that fiscal year and the projected State cost
23for the self-managed plan for that fiscal year. The Board's
24certification must note, in a written response to the State
25Actuary, any deviations from the State Actuary's recommended
26changes, the reason or reasons for not following the State

 

 

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1Actuary's recommended changes, and the fiscal impact of not
2following the State Actuary's recommended changes on the
3required State contribution.
4    (b) The Board shall certify to the State Comptroller or
5employer, as the case may be, from time to time, by its
6president and secretary, with its seal attached, the amounts
7payable to the System from the various funds.
8    (c) Beginning in State fiscal year 1996, on or as soon as
9possible after the 15th day of each month the Board shall
10submit vouchers for payment of State contributions to the
11System, in a total monthly amount of one-twelfth of the
12required annual State contribution certified under subsection
13(a). From the effective date of this amendatory Act of the 93rd
14General Assembly through June 30, 2004, the Board shall not
15submit vouchers for the remainder of fiscal year 2004 in excess
16of the fiscal year 2004 certified contribution amount
17determined under this Section after taking into consideration
18the transfer to the System under subsection (b) of Section
196z-61 of the State Finance Act. These vouchers shall be paid by
20the State Comptroller and Treasurer by warrants drawn on the
21funds appropriated to the System for that fiscal year.
22    If in any month the amount remaining unexpended from all
23other appropriations to the System for the applicable fiscal
24year (including the appropriations to the System under Section
258.12 of the State Finance Act and Section 1 of the State
26Pension Funds Continuing Appropriation Act) is less than the

 

 

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1amount lawfully vouchered under this Section, the difference
2shall be paid from the General Revenue Fund under the
3continuing appropriation authority provided in Section 1.1 of
4the State Pension Funds Continuing Appropriation Act.
5    (d) So long as the payments received are the full amount
6lawfully vouchered under this Section, payments received by the
7System under this Section shall be applied first toward the
8employer contribution to the self-managed plan established
9under Section 15-158.2. Payments shall be applied second toward
10the employer's portion of the normal costs of the System, as
11defined in subsection (f) of Section 15-155. The balance shall
12be applied toward the unfunded actuarial liabilities of the
13System.
14    (e) In the event that the System does not receive, as a
15result of legislative enactment or otherwise, payments
16sufficient to fully fund the employer contribution to the
17self-managed plan established under Section 15-158.2 and to
18fully fund that portion of the employer's portion of the normal
19costs of the System, as calculated in accordance with Section
2015-155(a-1), then any payments received shall be applied
21proportionately to the optional retirement program established
22under Section 15-158.2 and to the employer's portion of the
23normal costs of the System, as calculated in accordance with
24Section 15-155(a-1).
25(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2697-694, eff. 6-18-12.)
 

 

 

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1    (40 ILCS 5/15-198)
2    Sec. 15-198. Application and expiration of new benefit
3increases.
4    (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article or Article 1, that results from
8an amendment to this Code that takes effect after the effective
9date of this amendatory Act of the 94th General Assembly. "New
10benefit increase", however, does not include any benefit
11increase resulting from the changes made to this Article or
12Article 1 by this amendatory Act of the 97th General Assembly.
13    (b) Notwithstanding any other provision of this Code or any
14subsequent amendment to this Code, every new benefit increase
15is subject to this Section and shall be deemed to be granted
16only in conformance with and contingent upon compliance with
17the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional

 

 

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1funding has been provided for the new benefit increase and
2shall report its analysis to the Public Pension Division of the
3Department of Financial and Professional Regulation. A new
4benefit increase created by a Public Act that does not include
5the additional funding required under this subsection is null
6and void. If the Public Pension Division determines that the
7additional funding provided for a new benefit increase under
8this subsection is or has become inadequate, it may so certify
9to the Governor and the State Comptroller and, in the absence
10of corrective action by the General Assembly, the new benefit
11increase shall expire at the end of the fiscal year in which
12the certification is made.
13    (d) Every new benefit increase shall expire 5 years after
14its effective date or on such earlier date as may be specified
15in the language enacting the new benefit increase or provided
16under subsection (c). This does not prevent the General
17Assembly from extending or re-creating a new benefit increase
18by law.
19    (e) Except as otherwise provided in the language creating
20the new benefit increase, a new benefit increase that expires
21under this Section continues to apply to persons who applied
22and qualified for the affected benefit while the new benefit
23increase was in effect and to the affected beneficiaries and
24alternate payees of such persons, but does not apply to any
25other person, including without limitation a person who
26continues in service after the expiration date and did not

 

 

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1apply and qualify for the affected benefit while the new
2benefit increase was in effect.
3(Source: P.A. 94-4, eff. 6-1-05.)
 
4    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
5    Sec. 16-106. Teacher. "Teacher": The following
6individuals, provided that, for employment prior to July 1,
71990, they are employed on a full-time basis, or if not
8full-time, on a permanent and continuous basis in a position in
9which services are expected to be rendered for at least one
10school term:
11        (1) Any educational, administrative, professional or
12    other staff employed in the public common schools included
13    within this system in a position requiring certification
14    under the law governing the certification of teachers;
15        (2) Any educational, administrative, professional or
16    other staff employed in any facility of the Department of
17    Children and Family Services or the Department of Human
18    Services, in a position requiring certification under the
19    law governing the certification of teachers, and any person
20    who (i) works in such a position for the Department of
21    Corrections, (ii) was a member of this System on May 31,
22    1987, and (iii) did not elect to become a member of the
23    State Employees' Retirement System pursuant to Section
24    14-108.2 of this Code; except that "teacher" does not
25    include any person who (A) becomes a security employee of

 

 

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1    the Department of Human Services, as defined in Section
2    14-110, after June 28, 2001 (the effective date of Public
3    Act 92-14), or (B) becomes a member of the State Employees'
4    Retirement System pursuant to Section 14-108.2c of this
5    Code;
6        (3) Any regional superintendent of schools, assistant
7    regional superintendent of schools, State Superintendent
8    of Education; any person employed by the State Board of
9    Education as an executive; any executive of the boards
10    engaged in the service of public common school education in
11    school districts covered under this system of which the
12    State Superintendent of Education is an ex-officio member;
13        (4) Any employee of a school board association
14    operating in compliance with Article 23 of the School Code
15    who is certificated under the law governing the
16    certification of teachers, provided that he or she becomes
17    such an employee before the effective date of this
18    amendatory Act of the 97th General Assembly;
19        (5) Any person employed by the retirement system who:
20            (i) was an employee of and a participant in the
21        system on August 17, 2001 (the effective date of Public
22        Act 92-416), or
23            (ii) becomes an employee of the system on or after
24        August 17, 2001;
25        (6) Any educational, administrative, professional or
26    other staff employed by and under the supervision and

 

 

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1    control of a regional superintendent of schools, provided
2    such employment position requires the person to be
3    certificated under the law governing the certification of
4    teachers and is in an educational program serving 2 or more
5    districts in accordance with a joint agreement authorized
6    by the School Code or by federal legislation;
7        (7) Any educational, administrative, professional or
8    other staff employed in an educational program serving 2 or
9    more school districts in accordance with a joint agreement
10    authorized by the School Code or by federal legislation and
11    in a position requiring certification under the laws
12    governing the certification of teachers;
13        (8) Any officer or employee of a statewide teacher
14    organization or officer of a national teacher organization
15    who is certified under the law governing certification of
16    teachers, provided: (i) the individual had previously
17    established creditable service under this Article, (ii)
18    the individual files with the system an irrevocable
19    election to become a member before the effective date of
20    this amendatory Act of the 97th General Assembly, (iii) the
21    individual does not receive credit for such service under
22    any other Article of this Code, and (iv) the individual
23    first became an officer or employee of the teacher
24    organization and becomes a member before the effective date
25    of this amendatory Act of the 97th General Assembly;
26        (9) Any educational, administrative, professional, or

 

 

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1    other staff employed in a charter school operating in
2    compliance with the Charter Schools Law who is certificated
3    under the law governing the certification of teachers; .
4        (10) Any person employed, on the effective date of this
5    amendatory Act of the 94th General Assembly, by the
6    Macon-Piatt Regional Office of Education in a
7    birth-through-age-three pilot program receiving funds
8    under Section 2-389 of the School Code who is required by
9    the Macon-Piatt Regional Office of Education to hold a
10    teaching certificate, provided that the Macon-Piatt
11    Regional Office of Education makes an election, within 6
12    months after the effective date of this amendatory Act of
13    the 94th General Assembly, to have the person participate
14    in the system. Any service established prior to the
15    effective date of this amendatory Act of the 94th General
16    Assembly for service as an employee of the Macon-Piatt
17    Regional Office of Education in a birth-through-age-three
18    pilot program receiving funds under Section 2-389 of the
19    School Code shall be considered service as a teacher if
20    employee and employer contributions have been received by
21    the system and the system has not refunded those
22    contributions.
23    An annuitant receiving a retirement annuity under this
24Article or under Article 17 of this Code who is employed by a
25board of education or other employer as permitted under Section
2616-118 or 16-150.1 is not a "teacher" for purposes of this

 

 

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1Article. A person who has received a single-sum retirement
2benefit under Section 16-136.4 of this Article is not a
3"teacher" for purposes of this Article.
4(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
5    (40 ILCS 5/16-106.4 new)
6    Sec. 16-106.4. Tier I member. "Tier I member": A member
7under this Article who first became a member or participant
8before January 1, 2011 under any reciprocal retirement system
9or pension fund established under this Code other than a
10retirement system or pension fund established under Article 2,
113, 4, 5, 6, or 18 of this Code.
 
12    (40 ILCS 5/16-106.5 new)
13    Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former
14Tier I member who is receiving a retirement annuity.
 
15    (40 ILCS 5/16-121)  (from Ch. 108 1/2, par. 16-121)
16    Sec. 16-121. Salary. "Salary": The actual compensation
17received by a teacher during any school year and recognized by
18the system in accordance with rules of the board. For purposes
19of this Section, "school year" includes the regular school term
20plus any additional period for which a teacher is compensated
21and such compensation is recognized by the rules of the board.
22    Notwithstanding any other provision of this Code, the
23salary of a Tier I member for the purposes of this Code shall

 

 

09700SB1673ham010- 126 -LRB097 07605 JDS 73130 a

1not exceed, for periods of service on or after the effective
2date of this amendatory Act of the 97th General Assembly, the
3greater of (i) the annual contribution and benefit base
4established for the applicable year by the Commissioner of
5Social Security under the federal Social Security Act or (ii)
6the annual salary of the member during the 365 days immediately
7preceding the effective date of this Section; except that this
8limitation does not apply to a member's salary that is
9determined under an employment contract or collective
10bargaining agreement that is in effect on the effective date of
11this amendatory Act of the 97th General Assembly and has not
12been amended or renewed after that date.
13(Source: P.A. 84-1028.)
 
14    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
15    Sec. 16-127. Computation of creditable service.
16    (a) Each member shall receive regular credit for all
17service as a teacher from the date membership begins, for which
18satisfactory evidence is supplied and all contributions have
19been paid.
20    (b) The following periods of service shall earn optional
21credit and each member shall receive credit for all such
22service for which satisfactory evidence is supplied and all
23contributions have been paid as of the date specified:
24        (1) Prior service as a teacher.
25        (2) Service in a capacity essentially similar or

 

 

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1    equivalent to that of a teacher, in the public common
2    schools in school districts in this State not included
3    within the provisions of this System, or of any other
4    State, territory, dependency or possession of the United
5    States, or in schools operated by or under the auspices of
6    the United States, or under the auspices of any agency or
7    department of any other State, and service during any
8    period of professional speech correction or special
9    education experience for a public agency within this State
10    or any other State, territory, dependency or possession of
11    the United States, and service prior to February 1, 1951 as
12    a recreation worker for the Illinois Department of Public
13    Safety, for a period not exceeding the lesser of 2/5 of the
14    total creditable service of the member or 10 years. The
15    maximum service of 10 years which is allowable under this
16    paragraph shall be reduced by the service credit which is
17    validated by other retirement systems under paragraph (i)
18    of Section 15-113 and paragraph 1 of Section 17-133. Credit
19    granted under this paragraph may not be used in
20    determination of a retirement annuity or disability
21    benefits unless the member has at least 5 years of
22    creditable service earned subsequent to this employment
23    with one or more of the following systems: Teachers'
24    Retirement System of the State of Illinois, State
25    Universities Retirement System, and the Public School
26    Teachers' Pension and Retirement Fund of Chicago. Whenever

 

 

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1    such service credit exceeds the maximum allowed for all
2    purposes of this Article, the first service rendered in
3    point of time shall be considered. The changes to this
4    subdivision (b)(2) made by Public Act 86-272 shall apply
5    not only to persons who on or after its effective date
6    (August 23, 1989) are in service as a teacher under the
7    System, but also to persons whose status as such a teacher
8    terminated prior to such effective date, whether or not
9    such person is an annuitant on that date.
10        (3) Any periods immediately following teaching
11    service, under this System or under Article 17, (or
12    immediately following service prior to February 1, 1951 as
13    a recreation worker for the Illinois Department of Public
14    Safety) spent in active service with the military forces of
15    the United States; periods spent in educational programs
16    that prepare for return to teaching sponsored by the
17    federal government following such active military service;
18    if a teacher returns to teaching service within one
19    calendar year after discharge or after the completion of
20    the educational program, a further period, not exceeding
21    one calendar year, between time spent in military service
22    or in such educational programs and the return to
23    employment as a teacher under this System; and a period of
24    up to 2 years of active military service not immediately
25    following employment as a teacher.
26        The changes to this Section and Section 16-128 relating

 

 

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1    to military service made by P.A. 87-794 shall apply not
2    only to persons who on or after its effective date are in
3    service as a teacher under the System, but also to persons
4    whose status as a teacher terminated prior to that date,
5    whether or not the person is an annuitant on that date. In
6    the case of an annuitant who applies for credit allowable
7    under this Section for a period of military service that
8    did not immediately follow employment, and who has made the
9    required contributions for such credit, the annuity shall
10    be recalculated to include the additional service credit,
11    with the increase taking effect on the date the System
12    received written notification of the annuitant's intent to
13    purchase the credit, if payment of all the required
14    contributions is made within 60 days of such notice, or
15    else on the first annuity payment date following the date
16    of payment of the required contributions. In calculating
17    the automatic annual increase for an annuity that has been
18    recalculated under this Section, the increase attributable
19    to the additional service allowable under P.A. 87-794 shall
20    be included in the calculation of automatic annual
21    increases accruing after the effective date of the
22    recalculation.
23        Credit for military service shall be determined as
24    follows: if entry occurs during the months of July, August,
25    or September and the member was a teacher at the end of the
26    immediately preceding school term, credit shall be granted

 

 

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1    from July 1 of the year in which he or she entered service;
2    if entry occurs during the school term and the teacher was
3    in teaching service at the beginning of the school term,
4    credit shall be granted from July 1 of such year. In all
5    other cases where credit for military service is allowed,
6    credit shall be granted from the date of entry into the
7    service.
8        The total period of military service for which credit
9    is granted shall not exceed 5 years for any member unless
10    the service: (A) is validated before July 1, 1964, and (B)
11    does not extend beyond July 1, 1963. Credit for military
12    service shall be granted under this Section only if not
13    more than 5 years of the military service for which credit
14    is granted under this Section is used by the member to
15    qualify for a military retirement allotment from any branch
16    of the armed forces of the United States. The changes to
17    this subdivision (b)(3) made by Public Act 86-272 shall
18    apply not only to persons who on or after its effective
19    date (August 23, 1989) are in service as a teacher under
20    the System, but also to persons whose status as such a
21    teacher terminated prior to such effective date, whether or
22    not such person is an annuitant on that date.
23        (4) Any periods served as a member of the General
24    Assembly.
25        (5)(i) Any periods for which a teacher, as defined in
26    Section 16-106, is granted a leave of absence, provided he

 

 

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1    or she returns to teaching service creditable under this
2    System or the State Universities Retirement System
3    following the leave; (ii) periods during which a teacher is
4    involuntarily laid off from teaching, provided he or she
5    returns to teaching following the lay-off; (iii) periods
6    prior to July 1, 1983 during which a teacher ceased covered
7    employment due to pregnancy, provided that the teacher
8    returned to teaching service creditable under this System
9    or the State Universities Retirement System following the
10    pregnancy and submits evidence satisfactory to the Board
11    documenting that the employment ceased due to pregnancy;
12    and (iv) periods prior to July 1, 1983 during which a
13    teacher ceased covered employment for the purpose of
14    adopting an infant under 3 years of age or caring for a
15    newly adopted infant under 3 years of age, provided that
16    the teacher returned to teaching service creditable under
17    this System or the State Universities Retirement System
18    following the adoption and submits evidence satisfactory
19    to the Board documenting that the employment ceased for the
20    purpose of adopting an infant under 3 years of age or
21    caring for a newly adopted infant under 3 years of age.
22    However, total credit under this paragraph (5) may not
23    exceed 3 years.
24        Any qualified member or annuitant may apply for credit
25    under item (iii) or (iv) of this paragraph (5) without
26    regard to whether service was terminated before the

 

 

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1    effective date of this amendatory Act of 1997. In the case
2    of an annuitant who establishes credit under item (iii) or
3    (iv), the annuity shall be recalculated to include the
4    additional service credit. The increase in annuity shall
5    take effect on the date the System receives written
6    notification of the annuitant's intent to purchase the
7    credit, if the required evidence is submitted and the
8    required contribution paid within 60 days of that
9    notification, otherwise on the first annuity payment date
10    following the System's receipt of the required evidence and
11    contribution. The increase in an annuity recalculated
12    under this provision shall be included in the calculation
13    of automatic annual increases in the annuity accruing after
14    the effective date of the recalculation.
15        Optional credit may be purchased under this subsection
16    (b)(5) for periods during which a teacher has been granted
17    a leave of absence pursuant to Section 24-13 of the School
18    Code. A teacher whose service under this Article terminated
19    prior to the effective date of P.A. 86-1488 shall be
20    eligible to purchase such optional credit. If a teacher who
21    purchases this optional credit is already receiving a
22    retirement annuity under this Article, the annuity shall be
23    recalculated as if the annuitant had applied for the leave
24    of absence credit at the time of retirement. The difference
25    between the entitled annuity and the actual annuity shall
26    be credited to the purchase of the optional credit. The

 

 

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1    remainder of the purchase cost of the optional credit shall
2    be paid on or before April 1, 1992.
3        The change in this paragraph made by Public Act 86-273
4    shall be applicable to teachers who retire after June 1,
5    1989, as well as to teachers who are in service on that
6    date.
7        (6) Any days of unused and uncompensated accumulated
8    sick leave earned by a teacher who first became a
9    participant in the System before the effective date of this
10    amendatory Act of the 97th General Assembly. The service
11    credit granted under this paragraph shall be the ratio of
12    the number of unused and uncompensated accumulated sick
13    leave days to 170 days, subject to a maximum of 2 years of
14    service credit. Prior to the member's retirement, each
15    former employer shall certify to the System the number of
16    unused and uncompensated accumulated sick leave days
17    credited to the member at the time of termination of
18    service. The period of unused sick leave shall not be
19    considered in determining the effective date of
20    retirement. A member is not required to make contributions
21    in order to obtain service credit for unused sick leave.
22        Credit for sick leave shall, at retirement, be granted
23    by the System for any retiring regional or assistant
24    regional superintendent of schools who first became a
25    participant in this System before the effective date of
26    this amendatory Act of the 97th General Assembly at the

 

 

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1    rate of 6 days per year of creditable service or portion
2    thereof established while serving as such superintendent
3    or assistant superintendent.
4    Service credit is not available for unused sick leave
5accumulated by a teacher who first becomes a participant in
6this System on or after the effective date of this amendatory
7Act of the 97th General Assembly.
8        (7) Periods prior to February 1, 1987 served as an
9    employee of the Illinois Mathematics and Science Academy
10    for which credit has not been terminated under Section
11    15-113.9 of this Code.
12        (8) Service as a substitute teacher for work performed
13    prior to July 1, 1990.
14        (9) Service as a part-time teacher for work performed
15    prior to July 1, 1990.
16        (10) Up to 2 years of employment with Southern Illinois
17    University - Carbondale from September 1, 1959 to August
18    31, 1961, or with Governors State University from September
19    1, 1972 to August 31, 1974, for which the teacher has no
20    credit under Article 15. To receive credit under this item
21    (10), a teacher must apply in writing to the Board and pay
22    the required contributions before May 1, 1993 and have at
23    least 12 years of service credit under this Article.
24    (b-1) A member may establish optional credit for up to 2
25years of service as a teacher or administrator employed by a
26private school recognized by the Illinois State Board of

 

 

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1Education, provided that the teacher (i) was certified under
2the law governing the certification of teachers at the time the
3service was rendered, (ii) applies in writing on or after
4August 1, 2009 and on or before August 1, 2012, (iii) supplies
5satisfactory evidence of the employment, (iv) completes at
6least 10 years of contributing service as a teacher as defined
7in Section 16-106, and (v) pays the contribution required in
8subsection (d-5) of Section 16-128. The member may apply for
9credit under this subsection and pay the required contribution
10before completing the 10 years of contributing service required
11under item (iv), but the credit may not be used until the item
12(iv) contributing service requirement has been met.
13    (c) The service credits specified in this Section shall be
14granted only if: (1) such service credits are not used for
15credit in any other statutory tax-supported public employee
16retirement system other than the federal Social Security
17program; and (2) the member makes the required contributions as
18specified in Section 16-128. Except as provided in subsection
19(b-1) of this Section, the service credit shall be effective as
20of the date the required contributions are completed.
21    Any service credits granted under this Section shall
22terminate upon cessation of membership for any cause.
23    Credit may not be granted under this Section covering any
24period for which an age retirement or disability retirement
25allowance has been paid.
26(Source: P.A. 96-546, eff. 8-17-09.)
 

 

 

09700SB1673ham010- 136 -LRB097 07605 JDS 73130 a

1    (40 ILCS 5/16-133)  (from Ch. 108 1/2, par. 16-133)
2    Sec. 16-133. Retirement annuity; amount.
3    (a) The amount of the retirement annuity shall be (i) in
4the case of a person who first became a teacher under this
5Article before July 1, 2005, the larger of the amounts
6determined under paragraphs (A) and (B) below, or (ii) in the
7case of a person who first becomes a teacher under this Article
8on or after July 1, 2005, the amount determined under the
9applicable provisions of paragraph (B):
10        (A) An amount consisting of the sum of the following:
11            (1) An amount that can be provided on an
12        actuarially equivalent basis by the member's
13        accumulated contributions at the time of retirement;
14        and
15            (2) The sum of (i) the amount that can be provided
16        on an actuarially equivalent basis by the member's
17        accumulated contributions representing service prior
18        to July 1, 1947, and (ii) the amount that can be
19        provided on an actuarially equivalent basis by the
20        amount obtained by multiplying 1.4 times the member's
21        accumulated contributions covering service subsequent
22        to June 30, 1947; and
23            (3) If there is prior service, 2 times the amount
24        that would have been determined under subparagraph (2)
25        of paragraph (A) above on account of contributions

 

 

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1        which would have been made during the period of prior
2        service creditable to the member had the System been in
3        operation and had the member made contributions at the
4        contribution rate in effect prior to July 1, 1947.
5        For the purpose of calculating the sum provided under
6    this paragraph (A), the contribution required under
7    subsection (a-5) of Section 16-152 shall not be considered
8    when determining the amount of the member's accumulated
9    contributions under subparagraph (1) or (2).
10        This paragraph (A) does not apply to a person who first
11    becomes a teacher under this Article on or after July 1,
12    2005.
13        (B) An amount consisting of the greater of the
14    following:
15            (1) For creditable service earned before July 1,
16        1998 that has not been augmented under Section
17        16-129.1: 1.67% of final average salary for each of the
18        first 10 years of creditable service, 1.90% of final
19        average salary for each year in excess of 10 but not
20        exceeding 20, 2.10% of final average salary for each
21        year in excess of 20 but not exceeding 30, and 2.30% of
22        final average salary for each year in excess of 30; and
23            For creditable service earned on or after July 1,
24        1998 by a member who has at least 24 years of
25        creditable service on July 1, 1998 and who does not
26        elect to augment service under Section 16-129.1: 2.2%

 

 

09700SB1673ham010- 138 -LRB097 07605 JDS 73130 a

1        of final average salary for each year of creditable
2        service earned on or after July 1, 1998 but before the
3        member reaches a total of 30 years of creditable
4        service and 2.3% of final average salary for each year
5        of creditable service earned on or after July 1, 1998
6        and after the member reaches a total of 30 years of
7        creditable service; and
8            For all other creditable service: 2.2% of final
9        average salary for each year of creditable service; or
10            (2) 1.5% of final average salary for each year of
11        creditable service plus the sum $7.50 for each of the
12        first 20 years of creditable service.
13    The amount of the retirement annuity determined under this
14    paragraph (B) shall be reduced by 1/2 of 1% for each month
15    that the member is less than age 60 at the time the
16    retirement annuity begins. However, this reduction shall
17    not apply (i) if the member has at least 35 years of
18    creditable service, or (ii) if the member retires on
19    account of disability under Section 16-149.2 of this
20    Article with at least 20 years of creditable service, or
21    (iii) if the member (1) has earned during the period
22    immediately preceding the last day of service at least one
23    year of contributing creditable service as an employee of a
24    department as defined in Section 14-103.04, (2) has earned
25    at least 5 years of contributing creditable service as an
26    employee of a department as defined in Section 14-103.04,

 

 

09700SB1673ham010- 139 -LRB097 07605 JDS 73130 a

1    (3) retires on or after January 1, 2001, and (4) retires
2    having attained an age which, when added to the number of
3    years of his or her total creditable service, equals at
4    least 85. Portions of years shall be counted as decimal
5    equivalents.
6    (b) For purposes of this Section, final average salary
7shall be the average salary for the highest 4 consecutive years
8within the last 10 years of creditable service as determined
9under rules of the board. The minimum final average salary
10shall be considered to be $2,400 per year.
11    In the determination of final average salary for members
12other than elected officials and their appointees when such
13appointees are allowed by statute, that part of a member's
14salary for any year beginning after June 30, 1979 which exceeds
15the member's annual full-time salary rate with the same
16employer for the preceding year by more than 20% shall be
17excluded. The exclusion shall not apply in any year in which
18the member's creditable earnings are less than 50% of the
19preceding year's mean salary for downstate teachers as
20determined by the survey of school district salaries provided
21in Section 2-3.103 of the School Code.
22    (c) In determining the amount of the retirement annuity
23under paragraph (B) of this Section, a fractional year shall be
24granted proportional credit.
25    (d) The retirement annuity determined under paragraph (B)
26of this Section shall be available only to members who render

 

 

09700SB1673ham010- 140 -LRB097 07605 JDS 73130 a

1teaching service after July 1, 1947 for which member
2contributions are required, and to annuitants who re-enter
3under the provisions of Section 16-150.
4    (e) The maximum retirement annuity provided under
5paragraph (B) of this Section shall be 75% of final average
6salary.
7    (f) A member retiring after the effective date of this
8amendatory Act of 1998 shall receive a pension equal to 75% of
9final average salary if the member is qualified to receive a
10retirement annuity equal to at least 74.6% of final average
11salary under this Article or as proportional annuities under
12Article 20 of this Code.
13(Source: P.A. 94-4, eff. 6-1-05.)
 
14    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
15    Sec. 16-133.1. Automatic annual increase in annuity.
16    (a) Each member with creditable service and retiring on or
17after August 26, 1969 is entitled to the automatic annual
18increases in annuity provided under this Section while
19receiving a retirement annuity or disability retirement
20annuity from the system.
21    An annuitant shall first be entitled to an initial increase
22under this Section on the January 1 next following the first
23anniversary of retirement, or January 1 of the year next
24following attainment of age 61, whichever is later. At such
25time, the system shall pay an initial increase determined as

 

 

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1follows or as provided in subsections (a-1) and (a-2):
2        (1) 1.5% of the originally granted retirement annuity
3    or disability retirement annuity multiplied by the number
4    of years elapsed, if any, from the date of retirement until
5    January 1, 1972, plus
6        (2) 2% of the originally granted annuity multiplied by
7    the number of years elapsed, if any, from the date of
8    retirement or January 1, 1972, whichever is later, until
9    January 1, 1978, plus
10        (3) 3% of the originally granted annuity multiplied by
11    the number of years elapsed from the date of retirement or
12    January 1, 1978, whichever is later, until the effective
13    date of the initial increase.
14However, the initial annual increase calculated under this
15Section for the recipient of a disability retirement annuity
16granted under Section 16-149.2 shall be reduced by an amount
17equal to the total of all increases in that annuity received
18under Section 16-149.5 (but not exceeding 100% of the amount of
19the initial increase otherwise provided under this Section).
20    Following the initial increase, automatic annual increases
21in annuity shall be payable on each January 1 thereafter during
22the lifetime of the annuitant, determined as a percentage of
23the originally granted retirement annuity or disability
24retirement annuity for increases granted prior to January 1,
251990, and calculated as a percentage of the total amount of
26annuity, including previous increases under this Section, for

 

 

09700SB1673ham010- 142 -LRB097 07605 JDS 73130 a

1increases granted on or after January 1, 1990, as follows: 1.5%
2for periods prior to January 1, 1972, 2% for periods after
3December 31, 1971 and prior to January 1, 1978, and 3% for
4periods after December 31, 1977, or as provided in subsections
5(a-1) and (a-2).
6    (a-1) Notwithstanding any other provision of this Article,
7for a Tier I retiree, the amount of each automatic increase in
8retirement annuity occurring on or after the effective date of
9this amendatory Act of the 97th General Assembly shall be the
10lesser of (i) $750 or (ii) 3% of the total annuity payable at
11the time of the increase, including previous increases granted.
12    (a-2) Notwithstanding any other provision of this Article,
13the System shall not grant any new or additional automatic
14increase in retirement annuity to a Tier I retiree on or after
15the effective date of this amendatory Act of the 97th General
16Assembly and before January 1, 2020.
17    Notwithstanding any other provision of this Article, the
18System shall not grant any new or additional automatic increase
19in retirement annuity to a Tier I retiree who has not yet
20attained the age of 67, regardless of any age augmentation
21granted under this Article as an early retirement incentive.
22    If on the effective date of this amendatory Act of the 97th
23General Assembly a Tier I retiree has already received an
24annual increase under this Section but does not yet meet the
25new eligibility requirements of this subsection, the annual
26increases already received shall continue in force, but no

 

 

09700SB1673ham010- 143 -LRB097 07605 JDS 73130 a

1additional annual increase shall be granted until the Tier I
2retiree meets the new eligibility requirements.
3    (a-3) Notwithstanding Section 1-103.1, subsections (a-1)
4and (a-2) apply without regard to whether or not the Tier I
5retiree is in active service under this Article on or after the
6effective date of this amendatory Act of the 97th General
7Assembly.
8    (b) The automatic annual increases in annuity provided
9under this Section shall not be applicable unless a member has
10made contributions toward such increases for a period
11equivalent to one full year of creditable service. If a member
12contributes for service performed after August 26, 1969 but the
13member becomes an annuitant before such contributions amount to
14one full year's contributions based on the salary at the date
15of retirement, he or she may pay the necessary balance of the
16contributions to the system and be eligible for the automatic
17annual increases in annuity provided under this Section.
18    (c) Each member shall make contributions toward the cost of
19the automatic annual increases in annuity as provided under
20Section 16-152.
21    (d) An annuitant receiving a retirement annuity or
22disability retirement annuity on July 1, 1969, who subsequently
23re-enters service as a teacher is eligible for the automatic
24annual increases in annuity provided under this Section if he
25or she renders at least one year of creditable service
26following the latest re-entry.

 

 

09700SB1673ham010- 144 -LRB097 07605 JDS 73130 a

1    (e) In addition to the automatic annual increases in
2annuity provided under this Section, an annuitant who meets the
3service requirements of this Section and whose retirement
4annuity or disability retirement annuity began on or before
5January 1, 1971 shall receive, on January 1, 1981, an increase
6in the annuity then being paid of one dollar per month for each
7year of creditable service. On January 1, 1982, an annuitant
8whose retirement annuity or disability retirement annuity
9began on or before January 1, 1977 shall receive an increase in
10the annuity then being paid of one dollar per month for each
11year of creditable service.
12    On January 1, 1987, any annuitant whose retirement annuity
13began on or before January 1, 1977, shall receive an increase
14in the monthly retirement annuity equal to 8 per year of
15creditable service times the number of years that have elapsed
16since the annuity began.
17(Source: P.A. 91-927, eff. 12-14-00.)
 
18    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
19    Sec. 16-152. Contributions by members.
20    (a) Each member shall make contributions for membership
21service to this System as follows:
22        (1) Effective July 1, 1998, contributions of 7.50% of
23    salary towards the cost of the retirement annuity. Such
24    contributions shall be deemed "normal contributions".
25        (2) Effective July 1, 1969, contributions of 1/2 of 1%

 

 

09700SB1673ham010- 145 -LRB097 07605 JDS 73130 a

1    of salary toward the cost of the automatic annual increase
2    in retirement annuity provided under Section 16-133.1.
3        (3) Effective July 24, 1959, contributions of 1% of
4    salary towards the cost of survivor benefits. Such
5    contributions shall not be credited to the individual
6    account of the member and shall not be subject to refund
7    except as provided under Section 16-143.2.
8        (4) Effective July 1, 2005, contributions of 0.40% of
9    salary toward the cost of the early retirement without
10    discount option provided under Section 16-133.2. This
11    contribution shall cease upon termination of the early
12    retirement without discount option as provided in Section
13    16-176.
14    (a-5) In addition to the contributions otherwise required
15under this Article, each Tier I member shall also make the
16following contributions toward the cost of the retirement
17annuity from each payment of salary:
18        (1) beginning July 1, 2013 and through June 30, 2014,
19    1% of salary; and
20        (2) beginning on July 1, 2014, 2% of salary.
21    Except as otherwise specified, these contributions are to
22be considered as normal contributions for purposes of this
23Article.
24    (b) The minimum required contribution for any year of
25full-time teaching service shall be $192.
26    (c) Contributions shall not be required of any annuitant

 

 

09700SB1673ham010- 146 -LRB097 07605 JDS 73130 a

1receiving a retirement annuity who is given employment as
2permitted under Section 16-118 or 16-150.1.
3    (d) A person who (i) was a member before July 1, 1998, (ii)
4retires with more than 34 years of creditable service, and
5(iii) does not elect to qualify for the augmented rate under
6Section 16-129.1 shall be entitled, at the time of retirement,
7to receive a partial refund of contributions made under this
8Section for service occurring after the later of June 30, 1998
9or attainment of 34 years of creditable service, in an amount
10equal to 1.00% of the salary upon which those contributions
11were based.
12    (e) A member's contributions toward the cost of early
13retirement without discount made under item (a)(4) of this
14Section shall not be refunded if the member has elected early
15retirement without discount under Section 16-133.2 and has
16begun to receive a retirement annuity under this Article
17calculated in accordance with that election. Otherwise, a
18member's contributions toward the cost of early retirement
19without discount made under item (a)(4) of this Section shall
20be refunded according to whichever one of the following
21circumstances occurs first:
22        (1) The contributions shall be refunded to the member,
23    without interest, within 120 days after the member's
24    retirement annuity commences, if the member does not elect
25    early retirement without discount under Section 16-133.2.
26        (2) The contributions shall be included, without

 

 

09700SB1673ham010- 147 -LRB097 07605 JDS 73130 a

1    interest, in any refund claimed by the member under Section
2    16-151.
3        (3) The contributions shall be refunded to the member's
4    designated beneficiary (or if there is no beneficiary, to
5    the member's estate), without interest, if the member dies
6    without having begun to receive a retirement annuity under
7    this Article.
8        (4) The contributions shall be refunded to the member,
9    without interest, within 120 days after the early
10    retirement without discount option provided under Section
11    16-133.2 is terminated under Section 16-176.
12(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
13    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
14    Sec. 16-158. Contributions by State and other employing
15units.
16    (a) The State shall make contributions to the System by
17means of appropriations from the Common School Fund and other
18State funds of amounts which, together with other employer
19contributions, employee contributions, investment income, and
20other income, will be sufficient to meet the cost of
21maintaining and administering the System on a 100% 90% funded
22basis in accordance with actuarial recommendations by the end
23of State fiscal year 2043.
24    The Board shall determine the amount of State contributions
25required for each fiscal year on the basis of the actuarial

 

 

09700SB1673ham010- 148 -LRB097 07605 JDS 73130 a

1tables and other assumptions adopted by the Board and the
2recommendations of the actuary, using the formula in subsection
3(b-3).
4    (a-1) Annually, on or before November 15 through until
5November 15, 2011, the Board shall certify to the Governor the
6amount of the required State contribution for the coming fiscal
7year. The certification under this subsection (a-1) shall
8include a copy of the actuarial recommendations upon which it
9is based and shall specifically identify the System's projected
10State normal cost for that fiscal year.
11    On or before May 1, 2004, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2005, taking
14into account the amounts appropriated to and received by the
15System under subsection (d) of Section 7.2 of the General
16Obligation Bond Act.
17    On or before July 1, 2005, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2006, taking
20into account the changes in required State contributions made
21by this amendatory Act of the 94th General Assembly.
22    On or before April 1, 2011, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2011, applying
25the changes made by Public Act 96-889 to the System's assets
26and liabilities as of June 30, 2009 as though Public Act 96-889

 

 

09700SB1673ham010- 149 -LRB097 07605 JDS 73130 a

1was approved on that date.
2    (a-5) On or before November 1 of each year, beginning
3November 1, 2012, the Board shall submit to the State Actuary,
4the Governor, and the General Assembly a proposed certification
5of the amount of the required State contribution to the System
6for the next fiscal year, along with all of the actuarial
7assumptions, calculations, and data upon which that proposed
8certification is based. On or before January 1 of each year,
9beginning January 1, 2013, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification of the required State contributions.
14    On or before January 15, 2013 and each January 15
15thereafter, the Board shall certify to the Governor and the
16General Assembly the amount of the required State contribution
17for the next fiscal year. The certification shall include a
18copy of the actuarial recommendations upon which it is based
19and shall specifically identify the System's projected State
20normal cost for that fiscal year. The Board's certification
21must note any deviations from the State Actuary's recommended
22changes, the reason or reasons for not following the State
23Actuary's recommended changes, and the fiscal impact of not
24following the State Actuary's recommended changes on the
25required State contribution.
26    (b) Through State fiscal year 1995, the State contributions

 

 

09700SB1673ham010- 150 -LRB097 07605 JDS 73130 a

1shall be paid to the System in accordance with Section 18-7 of
2the School Code.
3    (b-1) Beginning in State fiscal year 1996, on the 15th day
4of each month, or as soon thereafter as may be practicable, the
5Board shall submit vouchers for payment of State contributions
6to the System, in a total monthly amount of one-twelfth of the
7required annual State contribution certified under subsection
8(a-1). From the effective date of this amendatory Act of the
993rd General Assembly through June 30, 2004, the Board shall
10not submit vouchers for the remainder of fiscal year 2004 in
11excess of the fiscal year 2004 certified contribution amount
12determined under this Section after taking into consideration
13the transfer to the System under subsection (a) of Section
146z-61 of the State Finance Act. These vouchers shall be paid by
15the State Comptroller and Treasurer by warrants drawn on the
16funds appropriated to the System for that fiscal year.
17    If in any month the amount remaining unexpended from all
18other appropriations to the System for the applicable fiscal
19year (including the appropriations to the System under Section
208.12 of the State Finance Act and Section 1 of the State
21Pension Funds Continuing Appropriation Act) is less than the
22amount lawfully vouchered under this subsection, the
23difference shall be paid from the Common School Fund under the
24continuing appropriation authority provided in Section 1.1 of
25the State Pension Funds Continuing Appropriation Act.
26    (b-2) Allocations from the Common School Fund apportioned

 

 

09700SB1673ham010- 151 -LRB097 07605 JDS 73130 a

1to school districts not coming under this System shall not be
2diminished or affected by the provisions of this Article.
3    (b-3) For State fiscal years 2014 through 2043, the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6equal to the sum of (1) the State's portion of the projected
7normal cost for that fiscal year, plus (2) an amount sufficient
8to bring the total assets of the System up to 100% of the total
9actuarial liabilities of the System by the end of State fiscal
10year 2043. In making these determinations, the required State
11contribution shall be calculated each year as a level
12percentage of payroll over the years remaining to and including
13fiscal year 2043 and shall be determined under the projected
14unit credit actuarial cost method.
15    For State fiscal year 2044 and thereafter, the minimum
16State contribution for each fiscal year shall be the amount
17needed to maintain the total assets of the System at 100% of
18the total actuarial liabilities of the System.
19    For State fiscal years 2012 and 2013 through 2045, the
20minimum contribution to the System to be made by the State for
21each fiscal year shall be an amount determined by the System to
22be sufficient to bring the total assets of the System up to 90%
23of the total actuarial liabilities of the System by the end of
24State fiscal year 2045. In making these determinations, the
25required State contribution shall be calculated each year as a
26level percentage of payroll over the years remaining to and

 

 

09700SB1673ham010- 152 -LRB097 07605 JDS 73130 a

1including fiscal year 2045 and shall be determined under the
2projected unit credit actuarial cost method.
3    For State fiscal years 1996 through 2005, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6so that by State fiscal year 2011, the State is contributing at
7the rate required under this Section; except that in the
8following specified State fiscal years, the State contribution
9to the System shall not be less than the following indicated
10percentages of the applicable employee payroll, even if the
11indicated percentage will produce a State contribution in
12excess of the amount otherwise required under this subsection
13and subsection (a), and notwithstanding any contrary
14certification made under subsection (a-1) before the effective
15date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
16in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
172003; and 13.56% in FY 2004.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2006 is
20$534,627,700.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2007 is
23$738,014,500.
24    For each of State fiscal years 2008 through 2009, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

09700SB1673ham010- 153 -LRB097 07605 JDS 73130 a

1from the required State contribution for State fiscal year
22007, so that by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2010 is
6$2,089,268,000 and shall be made from the proceeds of bonds
7sold in fiscal year 2010 pursuant to Section 7.2 of the General
8Obligation Bond Act, less (i) the pro rata share of bond sale
9expenses determined by the System's share of total bond
10proceeds, (ii) any amounts received from the Common School Fund
11in fiscal year 2010, and (iii) any reduction in bond proceeds
12due to the issuance of discounted bonds, if applicable.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2011 is
15the amount recertified by the System on or before April 1, 2011
16pursuant to subsection (a-1) of this Section and shall be made
17from the proceeds of bonds sold in fiscal year 2011 pursuant to
18Section 7.2 of the General Obligation Bond Act, less (i) the
19pro rata share of bond sale expenses determined by the System's
20share of total bond proceeds, (ii) any amounts received from
21the Common School Fund in fiscal year 2011, and (iii) any
22reduction in bond proceeds due to the issuance of discounted
23bonds, if applicable. This amount shall include, in addition to
24the amount certified by the System, an amount necessary to meet
25employer contributions required by the State as an employer
26under paragraph (e) of this Section, which may also be used by

 

 

09700SB1673ham010- 154 -LRB097 07605 JDS 73130 a

1the System for contributions required by paragraph (a) of
2Section 16-127.
3    Beginning in State fiscal year 2046, the minimum State
4contribution for each fiscal year shall be the amount needed to
5maintain the total assets of the System at 90% of the total
6actuarial liabilities of the System.
7    Amounts received by the System pursuant to Section 25 of
8the Budget Stabilization Act or Section 8.12 of the State
9Finance Act in any fiscal year do not reduce and do not
10constitute payment of any portion of the minimum State
11contribution required under this Article in that fiscal year.
12Such amounts shall not reduce, and shall not be included in the
13calculation of, the required State contributions under this
14Article in any future year until the System has reached a
15funding ratio of at least 100% 90%. A reference in this Article
16to the "required State contribution" or any substantially
17similar term does not include or apply to any amounts payable
18to the System under Section 25 of the Budget Stabilization Act.
19    Notwithstanding any other provision of this Code or the
20Budget Stabilization Act, amounts transferred to the System
21pursuant to the Budget Stabilization Act after the effective
22date of this amendatory Act of the 97th General Assembly do not
23reduce and do not constitute payment of any portion of the
24required State contribution under this Article in that fiscal
25year. Such amounts shall not reduce, and shall not be included
26in the calculation of, the required State contributions under

 

 

09700SB1673ham010- 155 -LRB097 07605 JDS 73130 a

1this Article in any future year until the System has received
2payment of contributions pursuant to the Budget Stabilization
3Act.
4    Notwithstanding any other provision of this Section, the
5required State contribution for State fiscal year 2005 and for
6fiscal year 2008 and each fiscal year thereafter through State
7fiscal year 2013, as calculated under this Section and
8certified under subsection (a-1), shall not exceed an amount
9equal to (i) the amount of the required State contribution that
10would have been calculated under this Section for that fiscal
11year if the System had not received any payments under
12subsection (d) of Section 7.2 of the General Obligation Bond
13Act, minus (ii) the portion of the State's total debt service
14payments for that fiscal year on the bonds issued in fiscal
15year 2003 for the purposes of that Section 7.2, as determined
16and certified by the Comptroller, that is the same as the
17System's portion of the total moneys distributed under
18subsection (d) of Section 7.2 of the General Obligation Bond
19Act. In determining this maximum for State fiscal years 2008
20through 2010, however, the amount referred to in item (i) shall
21be increased, as a percentage of the applicable employee
22payroll, in equal increments calculated from the sum of the
23required State contribution for State fiscal year 2007 plus the
24applicable portion of the State's total debt service payments
25for fiscal year 2007 on the bonds issued in fiscal year 2003
26for the purposes of Section 7.2 of the General Obligation Bond

 

 

09700SB1673ham010- 156 -LRB097 07605 JDS 73130 a

1Act, so that, by State fiscal year 2011, the State is
2contributing at the rate otherwise required under this Section.
3    (c) Payment of the required State contributions and of all
4pensions, retirement annuities, death benefits, refunds, and
5other benefits granted under or assumed by this System, and all
6expenses in connection with the administration and operation
7thereof, are obligations of the State.
8    If members are paid from special trust or federal funds
9which are administered by the employing unit, whether school
10district or other unit, the employing unit shall pay to the
11System from such funds the full accruing retirement costs based
12upon that service, as determined by the System. Employer
13contributions, based on salary paid to members from federal
14funds, may be forwarded by the distributing agency of the State
15of Illinois to the System prior to allocation, in an amount
16determined in accordance with guidelines established by such
17agency and the System.
18    (d) Effective July 1, 1986, any employer of a teacher as
19defined in paragraph (8) of Section 16-106 shall pay the
20employer's normal cost of benefits based upon the teacher's
21service, in addition to employee contributions, as determined
22by the System. Such employer contributions shall be forwarded
23monthly in accordance with guidelines established by the
24System.
25    However, with respect to benefits granted under Section
2616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)

 

 

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1of Section 16-106, the employer's contribution shall be 12%
2(rather than 20%) of the member's highest annual salary rate
3for each year of creditable service granted, and the employer
4shall also pay the required employee contribution on behalf of
5the teacher. For the purposes of Sections 16-133.4 and
616-133.5, a teacher as defined in paragraph (8) of Section
716-106 who is serving in that capacity while on leave of
8absence from another employer under this Article shall not be
9considered an employee of the employer from which the teacher
10is on leave.
11    (e) Beginning July 1, 1998, every employer of a teacher
12shall pay to the System an employer contribution computed as
13follows:
14        (1) Beginning July 1, 1998 through June 30, 1999, the
15    employer contribution shall be equal to 0.3% of each
16    teacher's salary.
17        (2) Beginning July 1, 1999 and thereafter, the employer
18    contribution shall be equal to 0.58% of each teacher's
19    salary.
20The school district or other employing unit may pay these
21employer contributions out of any source of funding available
22for that purpose and shall forward the contributions to the
23System on the schedule established for the payment of member
24contributions.
25    These employer contributions are intended to offset a
26portion of the cost to the System of the increases in

 

 

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1retirement benefits resulting from this amendatory Act of 1998.
2    Each employer of teachers is entitled to a credit against
3the contributions required under this subsection (e) with
4respect to salaries paid to teachers for the period January 1,
52002 through June 30, 2003, equal to the amount paid by that
6employer under subsection (a-5) of Section 6.6 of the State
7Employees Group Insurance Act of 1971 with respect to salaries
8paid to teachers for that period.
9    The additional 1% employee contribution required under
10Section 16-152 by this amendatory Act of 1998 is the
11responsibility of the teacher and not the teacher's employer,
12unless the employer agrees, through collective bargaining or
13otherwise, to make the contribution on behalf of the teacher.
14    If an employer is required by a contract in effect on May
151, 1998 between the employer and an employee organization to
16pay, on behalf of all its full-time employees covered by this
17Article, all mandatory employee contributions required under
18this Article, then the employer shall be excused from paying
19the employer contribution required under this subsection (e)
20for the balance of the term of that contract. The employer and
21the employee organization shall jointly certify to the System
22the existence of the contractual requirement, in such form as
23the System may prescribe. This exclusion shall cease upon the
24termination, extension, or renewal of the contract at any time
25after May 1, 1998.
26    (f) If the amount of a teacher's salary for any school year

 

 

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1used to determine final average salary exceeds the member's
2annual full-time salary rate with the same employer for the
3previous school year by more than 6%, the teacher's employer
4shall pay to the System, in addition to all other payments
5required under this Section and in accordance with guidelines
6established by the System, the present value of the increase in
7benefits resulting from the portion of the increase in salary
8that is in excess of 6%. This present value shall be computed
9by the System on the basis of the actuarial assumptions and
10tables used in the most recent actuarial valuation of the
11System that is available at the time of the computation. If a
12teacher's salary for the 2005-2006 school year is used to
13determine final average salary under this subsection (f), then
14the changes made to this subsection (f) by Public Act 94-1057
15shall apply in calculating whether the increase in his or her
16salary is in excess of 6%. For the purposes of this Section,
17change in employment under Section 10-21.12 of the School Code
18on or after June 1, 2005 shall constitute a change in employer.
19The System may require the employer to provide any pertinent
20information or documentation. The changes made to this
21subsection (f) by this amendatory Act of the 94th General
22Assembly apply without regard to whether the teacher was in
23service on or after its effective date.
24    Whenever it determines that a payment is or may be required
25under this subsection, the System shall calculate the amount of
26the payment and bill the employer for that amount. The bill

 

 

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1shall specify the calculations used to determine the amount
2due. If the employer disputes the amount of the bill, it may,
3within 30 days after receipt of the bill, apply to the System
4in writing for a recalculation. The application must specify in
5detail the grounds of the dispute and, if the employer asserts
6that the calculation is subject to subsection (g) or (h) of
7this Section, must include an affidavit setting forth and
8attesting to all facts within the employer's knowledge that are
9pertinent to the applicability of that subsection. Upon
10receiving a timely application for recalculation, the System
11shall review the application and, if appropriate, recalculate
12the amount due.
13    The employer contributions required under this subsection
14(f) may be paid in the form of a lump sum within 90 days after
15receipt of the bill. If the employer contributions are not paid
16within 90 days after receipt of the bill, then interest will be
17charged at a rate equal to the System's annual actuarially
18assumed rate of return on investment compounded annually from
19the 91st day after receipt of the bill. Payments must be
20concluded within 3 years after the employer's receipt of the
21bill.
22    (g) This subsection (g) applies only to payments made or
23salary increases given on or after June 1, 2005 but before July
241, 2011. The changes made by Public Act 94-1057 shall not
25require the System to refund any payments received before July
2631, 2006 (the effective date of Public Act 94-1057).

 

 

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1    When assessing payment for any amount due under subsection
2(f), the System shall exclude salary increases paid to teachers
3under contracts or collective bargaining agreements entered
4into, amended, or renewed before June 1, 2005.
5    When assessing payment for any amount due under subsection
6(f), the System shall exclude salary increases paid to a
7teacher at a time when the teacher is 10 or more years from
8retirement eligibility under Section 16-132 or 16-133.2.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude salary increases resulting from
11overload work, including summer school, when the school
12district has certified to the System, and the System has
13approved the certification, that (i) the overload work is for
14the sole purpose of classroom instruction in excess of the
15standard number of classes for a full-time teacher in a school
16district during a school year and (ii) the salary increases are
17equal to or less than the rate of pay for classroom instruction
18computed on the teacher's current salary and work schedule.
19    When assessing payment for any amount due under subsection
20(f), the System shall exclude a salary increase resulting from
21a promotion (i) for which the employee is required to hold a
22certificate or supervisory endorsement issued by the State
23Teacher Certification Board that is a different certification
24or supervisory endorsement than is required for the teacher's
25previous position and (ii) to a position that has existed and
26been filled by a member for no less than one complete academic

 

 

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1year and the salary increase from the promotion is an increase
2that results in an amount no greater than the lesser of the
3average salary paid for other similar positions in the district
4requiring the same certification or the amount stipulated in
5the collective bargaining agreement for a similar position
6requiring the same certification.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude any payment to the teacher from
9the State of Illinois or the State Board of Education over
10which the employer does not have discretion, notwithstanding
11that the payment is included in the computation of final
12average salary.
13    (h) When assessing payment for any amount due under
14subsection (f), the System shall exclude any salary increase
15described in subsection (g) of this Section given on or after
16July 1, 2011 but before July 1, 2014 under a contract or
17collective bargaining agreement entered into, amended, or
18renewed on or after June 1, 2005 but before July 1, 2011.
19Notwithstanding any other provision of this Section, any
20payments made or salary increases given after June 30, 2014
21shall be used in assessing payment for any amount due under
22subsection (f) of this Section.
23    (i) The System shall prepare a report and file copies of
24the report with the Governor and the General Assembly by
25January 1, 2007 that contains all of the following information:
26        (1) The number of recalculations required by the

 

 

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1    changes made to this Section by Public Act 94-1057 for each
2    employer.
3        (2) The dollar amount by which each employer's
4    contribution to the System was changed due to
5    recalculations required by Public Act 94-1057.
6        (3) The total amount the System received from each
7    employer as a result of the changes made to this Section by
8    Public Act 94-4.
9        (4) The increase in the required State contribution
10    resulting from the changes made to this Section by Public
11    Act 94-1057.
12    (j) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (k) For purposes of determining the required State
24contribution to the system for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the system's actuarially assumed rate of return.

 

 

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1(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
36-18-12; 97-813, eff. 7-13-12.)
 
4    (40 ILCS 5/16-158.2 new)
5    Sec. 16-158.2. Obligations of State; funding guarantee.
6    (a) Payment of the required State contributions and of all
7pensions, retirement annuities, death benefits, refunds, and
8other benefits granted under or assumed by this System, and all
9expenses in connection with the administration and operation
10thereof, are obligations of the State.
11    (b) Beginning July 1, 2013, the State shall be
12contractually obligated to contribute to the System under
13Section 16-158 in each State fiscal year an amount not less
14than the sum of (i) the State's normal cost for that year and
15(ii) the portion of the unfunded accrued liability assigned to
16that year by law in accordance with a schedule that distributes
17payments equitably over a reasonable period of time and in
18accordance with accepted actuarial practices. The obligations
19created under this subsection (b) are contractual obligations
20protected and enforceable under Article I, Section 16 and
21Article XIII, Section 5 of the Illinois Constitution.
22    Notwithstanding any other provision of law, if the State
23fails to pay in a State fiscal year the amount guaranteed under
24this subsection, the System may bring a mandamus action in the
25Circuit Court of Sangamon County to compel the State to make

 

 

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1that payment, irrespective of other remedies that may be
2available to the System. In ordering the State to make the
3required payment, the court may order a reasonable payment
4schedule to enable the State to make the required payment
5without significantly imperiling the public health, safety, or
6welfare.
 
7    (40 ILCS 5/16-203)
8    Sec. 16-203. Application and expiration of new benefit
9increases.
10    (a) As used in this Section, "new benefit increase" means
11an increase in the amount of any benefit provided under this
12Article, or an expansion of the conditions of eligibility for
13any benefit under this Article, that results from an amendment
14to this Code that takes effect after June 1, 2005 (the
15effective date of Public Act 94-4). "New benefit increase",
16however, does not include any benefit increase resulting from
17the changes made to this Article or Article 1 by Public Act
1895-910 or this amendatory Act of the 97th 95th General
19Assembly.
20    (b) Notwithstanding any other provision of this Code or any
21subsequent amendment to this Code, every new benefit increase
22is subject to this Section and shall be deemed to be granted
23only in conformance with and contingent upon compliance with
24the provisions of this Section.
25    (c) The Public Act enacting a new benefit increase must

 

 

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1identify and provide for payment to the System of additional
2funding at least sufficient to fund the resulting annual
3increase in cost to the System as it accrues.
4    Every new benefit increase is contingent upon the General
5Assembly providing the additional funding required under this
6subsection. The Commission on Government Forecasting and
7Accountability shall analyze whether adequate additional
8funding has been provided for the new benefit increase and
9shall report its analysis to the Public Pension Division of the
10Department of Financial and Professional Regulation. A new
11benefit increase created by a Public Act that does not include
12the additional funding required under this subsection is null
13and void. If the Public Pension Division determines that the
14additional funding provided for a new benefit increase under
15this subsection is or has become inadequate, it may so certify
16to the Governor and the State Comptroller and, in the absence
17of corrective action by the General Assembly, the new benefit
18increase shall expire at the end of the fiscal year in which
19the certification is made.
20    (d) Every new benefit increase shall expire 5 years after
21its effective date or on such earlier date as may be specified
22in the language enacting the new benefit increase or provided
23under subsection (c). This does not prevent the General
24Assembly from extending or re-creating a new benefit increase
25by law.
26    (e) Except as otherwise provided in the language creating

 

 

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1the new benefit increase, a new benefit increase that expires
2under this Section continues to apply to persons who applied
3and qualified for the affected benefit while the new benefit
4increase was in effect and to the affected beneficiaries and
5alternate payees of such persons, but does not apply to any
6other person, including without limitation a person who
7continues in service after the expiration date and did not
8apply and qualify for the affected benefit while the new
9benefit increase was in effect.
10(Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
 
11    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
12    Sec. 18-131. Financing; employer contributions.
13    (a) The State of Illinois shall make contributions to this
14System by appropriations of the amounts which, together with
15the contributions of participants, net earnings on
16investments, and other income, will meet the costs of
17maintaining and administering this System on a 90% funded basis
18in accordance with actuarial recommendations.
19    (b) The Board shall determine the amount of State
20contributions required for each fiscal year on the basis of the
21actuarial tables and other assumptions adopted by the Board and
22the prescribed rate of interest, using the formula in
23subsection (c).
24    (c) For State fiscal years 2012 through 2045, the minimum
25contribution to the System to be made by the State for each

 

 

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1fiscal year shall be an amount determined by the System to be
2sufficient to bring the total assets of the System up to 90% of
3the total actuarial liabilities of the System by the end of
4State fiscal year 2045. In making these determinations, the
5required State contribution shall be calculated each year as a
6level percentage of payroll over the years remaining to and
7including fiscal year 2045 and shall be determined under the
8projected unit credit actuarial cost method.
9    For State fiscal years 1996 through 2005, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12so that by State fiscal year 2011, the State is contributing at
13the rate required under this Section.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2006 is
16$29,189,400.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2007 is
19$35,236,800.
20    For each of State fiscal years 2008 through 2009, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23from the required State contribution for State fiscal year
242007, so that by State fiscal year 2011, the State is
25contributing at the rate otherwise required under this Section.
26    Notwithstanding any other provision of this Article, the

 

 

09700SB1673ham010- 169 -LRB097 07605 JDS 73130 a

1total required State contribution for State fiscal year 2010 is
2$78,832,000 and shall be made from the proceeds of bonds sold
3in fiscal year 2010 pursuant to Section 7.2 of the General
4Obligation Bond Act, less (i) the pro rata share of bond sale
5expenses determined by the System's share of total bond
6proceeds, (ii) any amounts received from the General Revenue
7Fund in fiscal year 2010, and (iii) any reduction in bond
8proceeds due to the issuance of discounted bonds, if
9applicable.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2011 is
12the amount recertified by the System on or before April 1, 2011
13pursuant to Section 18-140 and shall be made from the proceeds
14of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
15the General Obligation Bond Act, less (i) the pro rata share of
16bond sale expenses determined by the System's share of total
17bond proceeds, (ii) any amounts received from the General
18Revenue Fund in fiscal year 2011, and (iii) any reduction in
19bond proceeds 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

 

 

09700SB1673ham010- 170 -LRB097 07605 JDS 73130 a

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 Code or the
12Budget Stabilization Act, amounts transferred to the System
13pursuant to the Budget Stabilization Act after the effective
14date of this amendatory Act of the 97th General Assembly do not
15reduce and do not constitute payment of any portion of the
16required State contribution under this Article in that fiscal
17year. Such amounts shall not reduce, and shall not be included
18in the calculation of, the required State contributions under
19this Article in any future year until the System has received
20payment of contributions pursuant to the Budget Stabilization
21Act.
22    Notwithstanding any other provision of this Section, the
23required State contribution for State fiscal year 2005 and for
24fiscal year 2008 and each fiscal year thereafter, as calculated
25under this Section and certified under Section 18-140, shall
26not exceed an amount equal to (i) the amount of the required

 

 

09700SB1673ham010- 171 -LRB097 07605 JDS 73130 a

1State contribution that would have been calculated under this
2Section for that fiscal year if the System had not received any
3payments under subsection (d) of Section 7.2 of the General
4Obligation Bond Act, minus (ii) the portion of the State's
5total debt service payments for that fiscal year on the bonds
6issued in fiscal year 2003 for the purposes of that Section
77.2, as determined and certified by the Comptroller, that is
8the same as the System's portion of the total moneys
9distributed under subsection (d) of Section 7.2 of the General
10Obligation Bond Act. In determining this maximum for State
11fiscal years 2008 through 2010, however, the amount referred to
12in item (i) shall be increased, as a percentage of the
13applicable employee payroll, in equal increments calculated
14from the sum of the required State contribution for State
15fiscal year 2007 plus the applicable portion of the State's
16total debt service payments for fiscal year 2007 on the bonds
17issued in fiscal year 2003 for the purposes of Section 7.2 of
18the General Obligation Bond Act, so that, by State fiscal year
192011, the State is contributing at the rate otherwise required
20under this Section.
21    (d) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25    As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

 

 

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1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6    (e) For purposes of determining the required State
7contribution to the system for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the system's actuarially assumed rate of return.
10(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1196-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
127-13-12.)
 
13    Section 25. The Illinois Educational Labor Relations Act is
14amended by changing Sections 4 and 17 as follows:
 
15    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
16    Sec. 4. Employer rights. Employers shall not be required to
17bargain over matters of inherent managerial policy, which shall
18include such areas of discretion or policy as the functions of
19the employer, standards of services, its overall budget, the
20organizational structure and selection of new employees and
21direction of employees. Employers, however, shall be required
22to bargain collectively with regard to policy matters directly
23affecting wages, hours and terms and conditions of employment
24as well as the impact thereon upon request by employee

 

 

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1representatives, but excluding the changes, the impact of
2changes, and the implementation of the changes set forth in
3this amendatory Act of the 97th General Assembly. To preserve
4the rights of employers and exclusive representatives which
5have established collective bargaining relationships or
6negotiated collective bargaining agreements prior to the
7effective date of this Act, employers shall be required to
8bargain collectively with regard to any matter concerning
9wages, hours or conditions of employment about which they have
10bargained for and agreed to in a collective bargaining
11agreement prior to the effective date of this Act, but
12excluding the changes, the impact of changes, and the
13implementation of the changes set forth in this amendatory Act
14of the 97th General Assembly.
15(Source: P.A. 83-1014.)
 
16    (115 ILCS 5/17)  (from Ch. 48, par. 1717)
17    Sec. 17. Effect on other laws. In case of any conflict
18between the provisions of this Act and any other law (other
19than the changes, the impact of changes, and the implementation
20of the changes made to the Illinois Pension Code by this
21amendatory Act of the 97th General Assembly), executive order
22or administrative regulation, the provisions of this Act shall
23prevail and control. The provisions of this Act are subject to
24the changes made by this amendatory Act of the 97th General
25Assembly. Nothing in this Act shall be construed to replace or

 

 

09700SB1673ham010- 174 -LRB097 07605 JDS 73130 a

1diminish the rights of employees established by Section 36d of
2"An Act to create the State Universities Civil Service System",
3approved May 11, 1905, as amended or modified.
4(Source: P.A. 83-1014.)
 
5    Section 90. The State Mandates Act is amended by adding
6Section 8.36 as follows:
 
7    (30 ILCS 805/8.36 new)
8    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
9of this Act, no reimbursement by the State is required for the
10implementation of any mandate created by this amendatory Act of
11the 97th General Assembly.
 
12    Section 97. Severability and inseverability. The changes
13made by this Act to Acts other than the Illinois Pension Code
14are severable from the other changes made by this Act. The
15changes made by this Act to an Article of the Illinois Pension
16Code are severable from the changes made by this Act to another
17Article of the Illinois Pension Code. However, the changes made
18by this Act in an Article of the Illinois Pension Code that
19relate to (i) automatic annual increases, (ii) employee or
20member contributions, (iii) State or employer contributions,
21(iv) State funding guarantees, or (v) salary, earnings, or
22compensation are mutually dependent and inseverable.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".