Full Text of HB5088 95th General Assembly
HB5088eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The State Finance Act is amended by changing | 5 |
| Section 8.12 as follows:
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| (30 ILCS 105/8.12)
(from Ch. 127, par. 144.12)
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| Sec. 8.12. State Pensions Fund.
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| (a) The moneys in the State Pensions Fund shall be used | 9 |
| exclusively
for the administration of the Uniform Disposition | 10 |
| of Unclaimed Property Act and
for the funding of the unfunded | 11 |
| liabilities of the designated retirement systems. Payments to | 12 |
| the designated retirement systems under this Section shall be | 13 |
| in addition to, and not in lieu of, any State contributions | 14 |
| required under the Illinois Pension Code payment of or | 15 |
| repayment to the General Revenue Fund a portion of
the required | 16 |
| State contributions to the
designated retirement systems .
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| "Designated retirement systems" means:
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| (1) the State Employees' Retirement System of | 19 |
| Illinois;
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| (2) the Teachers' Retirement System of the State of | 21 |
| Illinois;
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| (3) the State Universities Retirement System;
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| (4) the Judges Retirement System of Illinois; and
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| (5) the General Assembly Retirement System.
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| (b) Each year the General Assembly may make appropriations | 3 |
| from
the State Pensions Fund for the administration of the | 4 |
| Uniform Disposition of
Unclaimed Property Act.
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| Each month, the Commissioner of the Office of Banks and | 6 |
| Real Estate shall
certify to the State Treasurer the actual | 7 |
| expenditures that the Office of
Banks and Real Estate incurred | 8 |
| conducting unclaimed property examinations under
the Uniform | 9 |
| Disposition of Unclaimed Property Act during the immediately
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| preceding month. Within a reasonable
time following the | 11 |
| acceptance of such certification by the State Treasurer, the
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| State Treasurer shall pay from its appropriation from the State | 13 |
| Pensions Fund
to the Bank and Trust Company Fund and the | 14 |
| Savings and Residential Finance
Regulatory Fund an amount equal | 15 |
| to the expenditures incurred by each Fund for
that month.
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| Each month, the Director of Financial Institutions shall
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| certify to the State Treasurer the actual expenditures that the | 18 |
| Department of
Financial Institutions incurred conducting | 19 |
| unclaimed property examinations
under the Uniform Disposition | 20 |
| of Unclaimed Property Act during the immediately
preceding | 21 |
| month. Within a reasonable time following the acceptance of | 22 |
| such
certification by the State Treasurer, the State Treasurer | 23 |
| shall pay from its
appropriation from the State Pensions Fund
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| to the Financial Institutions Fund and the Credit Union Fund
an | 25 |
| amount equal to the expenditures incurred by each Fund for
that | 26 |
| month.
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| (c) As soon as possible after the effective date of this | 2 |
| amendatory Act of the 93rd General Assembly, the General | 3 |
| Assembly shall appropriate from the State Pensions Fund (1) to | 4 |
| the State Universities Retirement System the amount certified | 5 |
| under Section 15-165 during the prior year, (2) to the Judges | 6 |
| Retirement System of Illinois the amount certified under | 7 |
| Section 18-140 during the prior year, and (3) to the General | 8 |
| Assembly Retirement System the amount certified under Section | 9 |
| 2-134 during the prior year as part of the required
State | 10 |
| contributions to each of those designated retirement systems; | 11 |
| except that amounts appropriated under this subsection (c) in | 12 |
| State fiscal year 2005 shall not reduce the amount in the State | 13 |
| Pensions Fund below $5,000,000. If the amount in the State | 14 |
| Pensions Fund does not exceed the sum of the amounts certified | 15 |
| in Sections 15-165, 18-140, and 2-134 by at least $5,000,000, | 16 |
| the amount paid to each designated retirement system under this | 17 |
| subsection shall be reduced in proportion to the amount | 18 |
| certified by each of those designated retirement systems.
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| (c-5) For fiscal years year 2006 and thereafter , 2007, | 20 |
| 2008, and 2009 the General Assembly shall appropriate from the | 21 |
| State Pensions Fund to the State Universities Retirement System | 22 |
| the amount estimated to be available during the fiscal year in | 23 |
| the State Pensions Fund; provided, however, that the amounts | 24 |
| appropriated under this subsection (c-5) shall not reduce the | 25 |
| amount in the State Pensions Fund below $5,000,000.
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| (c-6) For fiscal year 2010 and each fiscal year thereafter, |
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| as soon as may be practical after any money is deposited into | 2 |
| the State Pensions Fund from the Unclaimed Property Trust Fund, | 3 |
| the State Treasurer shall apportion the deposited amount among | 4 |
| the designated retirement systems as defined in subsection (a) | 5 |
| to reduce their actuarial reserve deficiencies. The State | 6 |
| Comptroller and State Treasurer shall pay the apportioned | 7 |
| amounts to the designated retirement systems to fund the | 8 |
| unfunded liabilities of the designated retirement systems. The | 9 |
| amount apportioned to each designated retirement system shall | 10 |
| constitute a portion of the amount estimated to be available | 11 |
| for appropriation from the State Pensions Fund that is the same | 12 |
| as that retirement system's portion of the total actual reserve | 13 |
| deficiency of the systems, as determined annually by the | 14 |
| Governor's Office of Management and Budget at the request of | 15 |
| the State Treasurer. The amounts apportioned under this | 16 |
| subsection shall not reduce the amount in the State Pensions | 17 |
| Fund below $5,000,000. | 18 |
| (d) The
Governor's Office of Management and Budget shall | 19 |
| determine the individual and total
reserve deficiencies of the | 20 |
| designated retirement systems. For this purpose,
the
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| Governor's Office of Management and Budget shall utilize the | 22 |
| latest available audit and actuarial
reports of each of the | 23 |
| retirement systems and the relevant reports and
statistics of | 24 |
| the Public Employee Pension Fund Division of the Department of
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| Insurance.
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| (d-1) As soon as practicable after the effective date of |
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| this
amendatory Act of the 93rd General Assembly, the | 2 |
| Comptroller shall
direct and the Treasurer shall transfer from | 3 |
| the State Pensions Fund to
the General Revenue Fund, as funds | 4 |
| become available, a sum equal to the
amounts that would have | 5 |
| been paid
from the State Pensions Fund to the Teachers' | 6 |
| Retirement System of the State
of Illinois,
the State | 7 |
| Universities Retirement System, the Judges Retirement
System | 8 |
| of Illinois, the
General Assembly Retirement System, and the | 9 |
| State Employees'
Retirement System
of Illinois
after the | 10 |
| effective date of this
amendatory Act during the remainder of | 11 |
| fiscal year 2004 to the
designated retirement systems from the | 12 |
| appropriations provided for in
this Section if the transfers | 13 |
| provided in Section 6z-61 had not
occurred. The transfers | 14 |
| described in this subsection (d-1) are to
partially repay the | 15 |
| General Revenue Fund for the costs associated with
the bonds | 16 |
| used to fund the moneys transferred to the designated
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| retirement systems under Section 6z-61.
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| (e) The changes to this Section made by this amendatory Act | 19 |
| of 1994 shall
first apply to distributions from the Fund for | 20 |
| State fiscal year 1996.
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| (Source: P.A. 93-665, eff. 3-5-04; 93-839, eff. 7-30-04; 94-91, | 22 |
| eff. 7-1-05.)
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| Section 10. The Illinois Pension Code is amended by | 24 |
| changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as | 25 |
| follows:
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| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| Sec. 2-124. Contributions by State.
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| (a) The State shall make contributions to the System by
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| appropriations of amounts which, together with the | 5 |
| contributions of
participants, interest earned on investments, | 6 |
| and other income
will meet the cost of maintaining and | 7 |
| administering the System on a 90%
funded basis in accordance | 8 |
| with actuarial recommendations.
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| (b) The Board shall determine the amount of State
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| contributions required for each fiscal year on the basis of the
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| actuarial tables and other assumptions adopted by the Board and | 12 |
| the
prescribed rate of interest, using the formula in | 13 |
| subsection (c).
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| (c) For State fiscal years 2011 through 2045, the minimum | 15 |
| contribution
to the System to be made by the State for each | 16 |
| fiscal year shall be an amount
determined by the System to be | 17 |
| sufficient to bring the total assets of the
System up to 90% of | 18 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 20 |
| required State
contribution shall be calculated each year as a | 21 |
| level percentage of payroll
over the years remaining to and | 22 |
| including fiscal year 2045 and shall be
determined under the | 23 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 25 |
| contribution to
the System, as a percentage of the applicable |
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| employee payroll, shall be
increased in equal annual increments | 2 |
| so that by State fiscal year 2011, the
State is contributing at | 3 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 5 |
| total required State
contribution for State fiscal year 2006 is | 6 |
| $4,157,000.
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| Notwithstanding any other provision of this Article, the | 8 |
| total required State
contribution for State fiscal year 2007 is | 9 |
| $5,220,300.
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| For each of State fiscal years 2008 through 2010, the State | 11 |
| contribution to
the System, as a percentage of the applicable | 12 |
| employee payroll, shall be
increased in equal annual increments | 13 |
| from the required State contribution for State fiscal year | 14 |
| 2007, so that by State fiscal year 2011, the
State is | 15 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 17 |
| contribution for
each fiscal year shall be the amount needed to | 18 |
| maintain the total assets of
the System at 90% of the total | 19 |
| actuarial liabilities of the System.
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| Amounts received by the System pursuant to Section 25 of | 21 |
| the Budget Stabilization Act or Section 8.12 of the State | 22 |
| Finance Act in any fiscal year do not reduce and do not | 23 |
| constitute payment of any portion of the minimum State | 24 |
| contribution required under this Article in that fiscal year. | 25 |
| Such amounts shall not reduce, and shall not be included in the | 26 |
| calculation of, the required State contributions under this |
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| Article in any future year until the System has reached a | 2 |
| funding ratio of at least 90%. A reference in this Article to | 3 |
| the "required State contribution" or any substantially similar | 4 |
| term does not include or apply to any amounts payable to the | 5 |
| System under Section 25 of the Budget Stabilization Act.
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| Notwithstanding any other provision of this Section, the | 7 |
| required State
contribution for State fiscal year 2005 and for | 8 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 9 |
| under this Section and
certified under Section 2-134, shall not | 10 |
| exceed an amount equal to (i) the
amount of the required State | 11 |
| contribution that would have been calculated under
this Section | 12 |
| for that fiscal year if the System had not received any | 13 |
| payments
under subsection (d) of Section 7.2 of the General | 14 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 15 |
| total debt service payments for that fiscal
year on the bonds | 16 |
| issued for the purposes of that Section 7.2, as determined
and | 17 |
| certified by the Comptroller, that is the same as the System's | 18 |
| portion of
the total moneys distributed under subsection (d) of | 19 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 20 |
| this maximum for State fiscal years 2008 through 2010, however, | 21 |
| the amount referred to in item (i) shall be increased, as a | 22 |
| percentage of the applicable employee payroll, in equal | 23 |
| increments calculated from the sum of the required State | 24 |
| contribution for State fiscal year 2007 plus the applicable | 25 |
| portion of the State's total debt service payments for fiscal | 26 |
| year 2007 on the bonds issued for the purposes of Section 7.2 |
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| of the General
Obligation Bond Act, so that, by State fiscal | 2 |
| year 2011, the
State is contributing at the rate otherwise | 3 |
| required under this Section.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 5 |
| eff. 6-6-06.)
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| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
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| Sec. 14-131. Contributions by State.
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| (a) The State shall make contributions to the System by | 9 |
| appropriations of
amounts which, together with other employer | 10 |
| contributions from trust, federal,
and other funds, employee | 11 |
| contributions, investment income, and other income,
will be | 12 |
| sufficient to meet the cost of maintaining and administering | 13 |
| the System
on a 90% funded basis in accordance with actuarial | 14 |
| recommendations.
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| For the purposes of this Section and Section 14-135.08, | 16 |
| references to State
contributions refer only to employer | 17 |
| contributions and do not include employee
contributions that | 18 |
| are picked up or otherwise paid by the State or a
department on | 19 |
| behalf of the employee.
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| (b) The Board shall determine the total amount of State | 21 |
| contributions
required for each fiscal year on the basis of the | 22 |
| actuarial tables and other
assumptions adopted by the Board, | 23 |
| using the formula in subsection (e).
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| The Board shall also determine a State contribution rate | 25 |
| for each fiscal
year, expressed as a percentage of payroll, |
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| based on the total required State
contribution for that fiscal | 2 |
| year (less the amount received by the System from
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| appropriations under Section 8.12 of the State Finance Act and | 4 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 5 |
| Act, if any, for the fiscal year
ending on the June 30 | 6 |
| immediately preceding the applicable November 15
certification | 7 |
| deadline), the estimated payroll (including all forms of
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| compensation) for personal services rendered by eligible | 9 |
| employees, and the
recommendations of the actuary.
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| For the purposes of this Section and Section 14.1 of the | 11 |
| State Finance Act,
the term "eligible employees" includes | 12 |
| employees who participate in the System,
persons who may elect | 13 |
| to participate in the System but have not so elected,
persons | 14 |
| who are serving a qualifying period that is required for | 15 |
| participation,
and annuitants employed by a department as | 16 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
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| (c) Contributions shall be made by the several departments | 18 |
| for each pay
period by warrants drawn by the State Comptroller | 19 |
| against their respective
funds or appropriations based upon | 20 |
| vouchers stating the amount to be so
contributed. These amounts | 21 |
| shall be based on the full rate certified by the
Board under | 22 |
| Section 14-135.08 for that fiscal year.
From the effective date | 23 |
| of this amendatory Act of the 93rd General
Assembly through the | 24 |
| payment of the final payroll from fiscal year 2004
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| appropriations, the several departments shall not make | 26 |
| contributions
for the remainder of fiscal year 2004 but shall |
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| instead make payments
as required under subsection (a-1) of | 2 |
| Section 14.1 of the State Finance Act.
The several departments | 3 |
| shall resume those contributions at the commencement of
fiscal | 4 |
| year 2005.
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| (d) If an employee is paid from trust funds or federal | 6 |
| funds, the
department or other employer shall pay employer | 7 |
| contributions from those funds
to the System at the certified | 8 |
| rate, unless the terms of the trust or the
federal-State | 9 |
| agreement preclude the use of the funds for that purpose, in
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| which case the required employer contributions shall be paid by | 11 |
| the State.
From the effective date of this amendatory
Act of | 12 |
| the 93rd General Assembly through the payment of the final
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| payroll from fiscal year 2004 appropriations, the department or | 14 |
| other
employer shall not pay contributions for the remainder of | 15 |
| fiscal year
2004 but shall instead make payments as required | 16 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 17 |
| Act. The department or other employer shall
resume payment of
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| contributions at the commencement of fiscal year 2005.
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| (e) For State fiscal years 2011 through 2045, the minimum | 20 |
| contribution
to the System to be made by the State for each | 21 |
| fiscal year shall be an amount
determined by the System to be | 22 |
| sufficient to bring the total assets of the
System up to 90% of | 23 |
| the total actuarial liabilities of the System by the end
of | 24 |
| State fiscal year 2045. In making these determinations, the | 25 |
| required State
contribution shall be calculated each year as a | 26 |
| level percentage of payroll
over the years remaining to and |
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| including fiscal year 2045 and shall be
determined under the | 2 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 4 |
| contribution to
the System, as a percentage of the applicable | 5 |
| employee payroll, shall be
increased in equal annual increments | 6 |
| so that by State fiscal year 2011, the
State is contributing at | 7 |
| the rate required under this Section; except that
(i) for State | 8 |
| fiscal year 1998, for all purposes of this Code and any other
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| law of this State, the certified percentage of the applicable | 10 |
| employee payroll
shall be 5.052% for employees earning eligible | 11 |
| creditable service under Section
14-110 and 6.500% for all | 12 |
| other employees, notwithstanding any contrary
certification | 13 |
| made under Section 14-135.08 before the effective date of this
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| amendatory Act of 1997, and (ii)
in the following specified | 15 |
| State fiscal years, the State contribution to
the System shall | 16 |
| not be less than the following indicated percentages of the
| 17 |
| applicable employee payroll, even if the indicated percentage | 18 |
| will produce a
State contribution in excess of the amount | 19 |
| otherwise required under this
subsection and subsection (a):
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| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 21 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
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| Notwithstanding any other provision of this Article, the | 23 |
| total required State
contribution to the System for State | 24 |
| fiscal year 2006 is $203,783,900.
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| Notwithstanding any other provision of this Article, the | 26 |
| total required State
contribution to the System for State |
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| fiscal year 2007 is $344,164,400.
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| For each of State fiscal years 2008 through 2010, the State | 3 |
| contribution to
the System, as a percentage of the applicable | 4 |
| employee payroll, shall be
increased in equal annual increments | 5 |
| from the required State contribution for State fiscal year | 6 |
| 2007, so that by State fiscal year 2011, the
State is | 7 |
| contributing at the rate otherwise required under this Section.
| 8 |
| Beginning in State fiscal year 2046, the minimum State | 9 |
| contribution for
each fiscal year shall be the amount needed to | 10 |
| maintain the total assets of
the System at 90% of the total | 11 |
| actuarial liabilities of the System.
| 12 |
| Amounts received by the System pursuant to Section 25 of | 13 |
| the Budget Stabilization Act or Section 8.12 of the State | 14 |
| Finance Act in any fiscal year do not reduce and do not | 15 |
| constitute payment of any portion of the minimum State | 16 |
| contribution required under this Article in that fiscal year. | 17 |
| Such amounts shall not reduce, and shall not be included in the | 18 |
| calculation of, the required State contributions under this | 19 |
| Article in any future year until the System has reached a | 20 |
| funding ratio of at least 90%. A reference in this Article to | 21 |
| the "required State contribution" or any substantially similar | 22 |
| term does not include or apply to any amounts payable to the | 23 |
| System under Section 25 of the Budget Stabilization Act.
| 24 |
| Notwithstanding any other provision of this Section, the | 25 |
| required State
contribution for State fiscal year 2005 and for | 26 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated |
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| under this Section and
certified under Section 14-135.08, shall | 2 |
| not exceed an amount equal to (i) the
amount of the required | 3 |
| State contribution that would have been calculated under
this | 4 |
| Section for that fiscal year if the System had not received any | 5 |
| payments
under subsection (d) of Section 7.2 of the General | 6 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 7 |
| total debt service payments for that fiscal
year on the bonds | 8 |
| issued for the purposes of that Section 7.2, as determined
and | 9 |
| certified by the Comptroller, that is the same as the System's | 10 |
| portion of
the total moneys distributed under subsection (d) of | 11 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 12 |
| this maximum for State fiscal years 2008 through 2010, however, | 13 |
| the amount referred to in item (i) shall be increased, as a | 14 |
| percentage of the applicable employee payroll, in equal | 15 |
| increments calculated from the sum of the required State | 16 |
| contribution for State fiscal year 2007 plus the applicable | 17 |
| portion of the State's total debt service payments for fiscal | 18 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 19 |
| of the General
Obligation Bond Act, so that, by State fiscal | 20 |
| year 2011, the
State is contributing at the rate otherwise | 21 |
| required under this Section.
| 22 |
| (f) After the submission of all payments for eligible | 23 |
| employees
from personal services line items in fiscal year 2004 | 24 |
| have been made,
the Comptroller shall provide to the System a | 25 |
| certification of the sum
of all fiscal year 2004 expenditures | 26 |
| for personal services that would
have been covered by payments |
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| to the System under this Section if the
provisions of this | 2 |
| amendatory Act of the 93rd General Assembly had not been
| 3 |
| enacted. Upon
receipt of the certification, the System shall | 4 |
| determine the amount
due to the System based on the full rate | 5 |
| certified by the Board under
Section 14-135.08 for fiscal year | 6 |
| 2004 in order to meet the State's
obligation under this | 7 |
| Section. The System shall compare this amount
due to the amount | 8 |
| received by the System in fiscal year 2004 through
payments | 9 |
| under this Section and under Section 6z-61 of the State Finance | 10 |
| Act.
If the amount
due is more than the amount received, the | 11 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 12 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 13 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 14 |
| Continuing Appropriation Act. If the amount due is less than | 15 |
| the
amount received, the
difference shall be termed the "Fiscal | 16 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 17 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 18 |
| the Pension Contribution Fund as soon as practicable
after the | 19 |
| certification.
| 20 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 21 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
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| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 23 |
| Sec. 15-155. Employer contributions.
| 24 |
| (a) The State of Illinois shall make contributions by | 25 |
| appropriations of
amounts which, together with the other |
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|
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| employer contributions from trust,
federal, and other funds, | 2 |
| employee contributions, income from investments,
and other | 3 |
| income of this System, will be sufficient to meet the cost of
| 4 |
| maintaining and administering the System on a 90% funded basis | 5 |
| in accordance
with actuarial recommendations.
| 6 |
| The Board shall determine the amount of State contributions | 7 |
| required for
each fiscal year on the basis of the actuarial | 8 |
| tables and other assumptions
adopted by the Board and the | 9 |
| recommendations of the actuary, using the formula
in subsection | 10 |
| (a-1).
| 11 |
| (a-1) For State fiscal years 2011 through 2045, the minimum | 12 |
| contribution
to the System to be made by the State for each | 13 |
| fiscal year shall be an amount
determined by the System to be | 14 |
| sufficient to bring the total assets of the
System up to 90% of | 15 |
| the total actuarial liabilities of the System by the end of
| 16 |
| State fiscal year 2045. In making these determinations, the | 17 |
| required State
contribution shall be calculated each year as a | 18 |
| level percentage of payroll
over the years remaining to and | 19 |
| including fiscal year 2045 and shall be
determined under the | 20 |
| projected unit credit actuarial cost method.
| 21 |
| For State fiscal years 1996 through 2005, the State | 22 |
| contribution to
the System, as a percentage of the applicable | 23 |
| employee payroll, shall be
increased in equal annual increments | 24 |
| so that by State fiscal year 2011, the
State is contributing at | 25 |
| the rate required under this Section.
| 26 |
| Notwithstanding any other provision of this Article, the |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| total required State
contribution for State fiscal year 2006 is | 2 |
| $166,641,900.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2007 is | 5 |
| $252,064,100.
| 6 |
| For each of State fiscal years 2008 through 2010, the State | 7 |
| contribution to
the System, as a percentage of the applicable | 8 |
| employee payroll, shall be
increased in equal annual increments | 9 |
| from the required State contribution for State fiscal year | 10 |
| 2007, so that by State fiscal year 2011, the
State is | 11 |
| contributing at the rate otherwise required under this Section.
| 12 |
| Beginning in State fiscal year 2046, the minimum State | 13 |
| contribution for
each fiscal year shall be the amount needed to | 14 |
| maintain the total assets of
the System at 90% of the total | 15 |
| actuarial liabilities of the System.
| 16 |
| Amounts received by the System pursuant to Section 25 of | 17 |
| the Budget Stabilization Act or Section 8.12 of the State | 18 |
| Finance Act in any fiscal year do not reduce and do not | 19 |
| constitute payment of any portion of the minimum State | 20 |
| contribution required under this Article in that fiscal year. | 21 |
| Such amounts shall not reduce, and shall not be included in the | 22 |
| calculation of, the required State contributions under this | 23 |
| Article in any future year until the System has reached a | 24 |
| funding ratio of at least 90%. A reference in this Article to | 25 |
| the "required State contribution" or any substantially similar | 26 |
| term does not include or apply to any amounts payable to the |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| System under Section 25 of the Budget Stabilization Act. | 2 |
| Notwithstanding any other provision of this Section, the | 3 |
| required State
contribution for State fiscal year 2005 and for | 4 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 5 |
| under this Section and
certified under Section 15-165, shall | 6 |
| not exceed an amount equal to (i) the
amount of the required | 7 |
| State contribution that would have been calculated under
this | 8 |
| Section for that fiscal year if the System had not received any | 9 |
| payments
under subsection (d) of Section 7.2 of the General | 10 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 11 |
| total debt service payments for that fiscal
year on the bonds | 12 |
| issued for the purposes of that Section 7.2, as determined
and | 13 |
| certified by the Comptroller, that is the same as the System's | 14 |
| portion of
the total moneys distributed under subsection (d) of | 15 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 16 |
| this maximum for State fiscal years 2008 through 2010, however, | 17 |
| the amount referred to in item (i) shall be increased, as a | 18 |
| percentage of the applicable employee payroll, in equal | 19 |
| increments calculated from the sum of the required State | 20 |
| contribution for State fiscal year 2007 plus the applicable | 21 |
| portion of the State's total debt service payments for fiscal | 22 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 23 |
| of the General
Obligation Bond Act, so that, by State fiscal | 24 |
| year 2011, the
State is contributing at the rate otherwise | 25 |
| required under this Section.
| 26 |
| (b) If an employee is paid from trust or federal funds, the |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| employer
shall pay to the Board contributions from those funds | 2 |
| which are
sufficient to cover the accruing normal costs on | 3 |
| behalf of the employee.
However, universities having employees | 4 |
| who are compensated out of local
auxiliary funds, income funds, | 5 |
| or service enterprise funds are not required
to pay such | 6 |
| contributions on behalf of those employees. The local auxiliary
| 7 |
| funds, income funds, and service enterprise funds of | 8 |
| universities shall not be
considered trust funds for the | 9 |
| purpose of this Article, but funds of alumni
associations, | 10 |
| foundations, and athletic associations which are affiliated | 11 |
| with
the universities included as employers under this Article | 12 |
| and other employers
which do not receive State appropriations | 13 |
| are considered to be trust funds for
the purpose of this | 14 |
| Article.
| 15 |
| (b-1) The City of Urbana and the City of Champaign shall | 16 |
| each make
employer contributions to this System for their | 17 |
| respective firefighter
employees who participate in this | 18 |
| System pursuant to subsection (h) of Section
15-107. The rate | 19 |
| of contributions to be made by those municipalities shall
be | 20 |
| determined annually by the Board on the basis of the actuarial | 21 |
| assumptions
adopted by the Board and the recommendations of the | 22 |
| actuary, and shall be
expressed as a percentage of salary for | 23 |
| each such employee. The Board shall
certify the rate to the | 24 |
| affected municipalities as soon as may be practical.
The | 25 |
| employer contributions required under this subsection shall be | 26 |
| remitted by
the municipality to the System at the same time and |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| in the same manner as
employee contributions.
| 2 |
| (c) Through State fiscal year 1995: The total employer | 3 |
| contribution shall
be apportioned among the various funds of | 4 |
| the State and other employers,
whether trust, federal, or other | 5 |
| funds, in accordance with actuarial procedures
approved by the | 6 |
| Board. State of Illinois contributions for employers receiving
| 7 |
| State appropriations for personal services shall be payable | 8 |
| from appropriations
made to the employers or to the System. The | 9 |
| contributions for Class I
community colleges covering earnings | 10 |
| other than those paid from trust and
federal funds, shall be | 11 |
| payable solely from appropriations to the Illinois
Community | 12 |
| College Board or the System for employer contributions.
| 13 |
| (d) Beginning in State fiscal year 1996, the required State | 14 |
| contributions
to the System shall be appropriated directly to | 15 |
| the System and shall be payable
through vouchers issued in | 16 |
| accordance with subsection (c) of Section 15-165, except as | 17 |
| provided in subsection (g).
| 18 |
| (e) The State Comptroller shall draw warrants payable to | 19 |
| the System upon
proper certification by the System or by the | 20 |
| employer in accordance with the
appropriation laws and this | 21 |
| Code.
| 22 |
| (f) Normal costs under this Section means liability for
| 23 |
| pensions and other benefits which accrues to the System because | 24 |
| of the
credits earned for service rendered by the participants | 25 |
| during the
fiscal year and expenses of administering the | 26 |
| System, but shall not
include the principal of or any |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| redemption premium or interest on any bonds
issued by the Board | 2 |
| or any expenses incurred or deposits required in
connection | 3 |
| therewith.
| 4 |
| (g) If the amount of a participant's earnings for any | 5 |
| academic year used to determine the final rate of earnings, | 6 |
| determined on a full-time equivalent basis, exceeds the amount | 7 |
| of his or her earnings with the same employer for the previous | 8 |
| academic year, determined on a full-time equivalent basis, by | 9 |
| more than 6%, the participant's employer shall pay to the | 10 |
| System, in addition to all other payments required under this | 11 |
| Section and in accordance with guidelines established by the | 12 |
| System, the present value of the increase in benefits resulting | 13 |
| from the portion of the increase in earnings that is in excess | 14 |
| of 6%. This present value shall be computed by the System on | 15 |
| the basis of the actuarial assumptions and tables used in the | 16 |
| most recent actuarial valuation of the System that is available | 17 |
| at the time of the computation. The System may require the | 18 |
| employer to provide any pertinent information or | 19 |
| documentation. | 20 |
| Whenever it determines that a payment is or may be required | 21 |
| under this subsection (g), the System shall calculate the | 22 |
| amount of the payment and bill the employer for that amount. | 23 |
| The bill shall specify the calculations used to determine the | 24 |
| amount due. If the employer disputes the amount of the bill, it | 25 |
| may, within 30 days after receipt of the bill, apply to the | 26 |
| System in writing for a recalculation. The application must |
|
|
|
HB5088 Engrossed |
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|
| 1 |
| specify in detail the grounds of the dispute and, if the | 2 |
| employer asserts that the calculation is subject to subsection | 3 |
| (h) or (i) of this Section, must include an affidavit setting | 4 |
| forth and attesting to all facts within the employer's | 5 |
| knowledge that are pertinent to the applicability of subsection | 6 |
| (h) or (i). Upon receiving a timely application for | 7 |
| recalculation, the System shall review the application and, if | 8 |
| appropriate, recalculate the amount due.
| 9 |
| The employer contributions required under this subsection | 10 |
| (f) may be paid in the form of a lump sum within 90 days after | 11 |
| receipt of the bill. If the employer contributions are not paid | 12 |
| within 90 days after receipt of the bill, then interest will be | 13 |
| charged at a rate equal to the System's annual actuarially | 14 |
| assumed rate of return on investment compounded annually from | 15 |
| the 91st day after receipt of the bill. Payments must be | 16 |
| concluded within 3 years after the employer's receipt of the | 17 |
| bill. | 18 |
| (h) This subsection (h) applies only to payments made or | 19 |
| salary increases given on or after June 1, 2005 but before July | 20 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 21 |
| require the System to refund any payments received before July | 22 |
| 31, 2006 (the effective date of Public Act 94-1057). | 23 |
| When assessing payment for any amount due under subsection | 24 |
| (g), the System shall exclude earnings increases paid to | 25 |
| participants under contracts or collective bargaining | 26 |
| agreements entered into, amended, or renewed before June 1, |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| 2005.
| 2 |
| When assessing payment for any amount due under subsection | 3 |
| (g), the System shall exclude earnings increases paid to a | 4 |
| participant at a time when the participant is 10 or more years | 5 |
| from retirement eligibility under Section 15-135.
| 6 |
| When assessing payment for any amount due under subsection | 7 |
| (g), the System shall exclude earnings increases resulting from | 8 |
| overload work, including a contract for summer teaching, or | 9 |
| overtime when the employer has certified to the System, and the | 10 |
| System has approved the certification, that: (i) in the case of | 11 |
| overloads (A) the overload work is for the sole purpose of | 12 |
| academic instruction in excess of the standard number of | 13 |
| instruction hours for a full-time employee occurring during the | 14 |
| academic year that the overload is paid and (B) the earnings | 15 |
| increases are equal to or less than the rate of pay for | 16 |
| academic instruction computed using the participant's current | 17 |
| salary rate and work schedule; and (ii) in the case of | 18 |
| overtime, the overtime was necessary for the educational | 19 |
| mission. | 20 |
| When assessing payment for any amount due under subsection | 21 |
| (g), the System shall exclude any earnings increase resulting | 22 |
| from (i) a promotion for which the employee moves from one | 23 |
| classification to a higher classification under the State | 24 |
| Universities Civil Service System, (ii) a promotion in academic | 25 |
| rank for a tenured or tenure-track faculty position, or (iii) a | 26 |
| promotion that the Illinois Community College Board has |
|
|
|
HB5088 Engrossed |
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|
| 1 |
| recommended in accordance with subsection (k) of this Section. | 2 |
| These earnings increases shall be excluded only if the | 3 |
| promotion is to a position that has existed and been filled by | 4 |
| a member for no less than one complete academic year and the | 5 |
| earnings increase as a result of the promotion is an increase | 6 |
| that results in an amount no greater than the average salary | 7 |
| paid for other similar positions. | 8 |
| (i) When assessing payment for any amount due under | 9 |
| subsection (g), the System shall exclude any salary increase | 10 |
| described in subsection (h) of this Section given on or after | 11 |
| July 1, 2011 but before July 1, 2014 under a contract or | 12 |
| collective bargaining agreement entered into, amended, or | 13 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 14 |
| Notwithstanding any other provision of this Section, any | 15 |
| payments made or salary increases given after June 30, 2014 | 16 |
| shall be used in assessing payment for any amount due under | 17 |
| subsection (g) of this Section.
| 18 |
| (j) The System shall prepare a report and file copies of | 19 |
| the report with the Governor and the General Assembly by | 20 |
| January 1, 2007 that contains all of the following information: | 21 |
| (1) The number of recalculations required by the | 22 |
| changes made to this Section by Public Act 94-1057 for each | 23 |
| employer. | 24 |
| (2) The dollar amount by which each employer's | 25 |
| contribution to the System was changed due to | 26 |
| recalculations required by Public Act 94-1057. |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| (3) The total amount the System received from each | 2 |
| employer as a result of the changes made to this Section by | 3 |
| Public Act 94-4. | 4 |
| (4) The increase in the required State contribution | 5 |
| resulting from the changes made to this Section by Public | 6 |
| Act 94-1057. | 7 |
| (k) The Illinois Community College Board shall adopt rules | 8 |
| for recommending lists of promotional positions submitted to | 9 |
| the Board by community colleges and for reviewing the | 10 |
| promotional lists on an annual basis. When recommending | 11 |
| promotional lists, the Board shall consider the similarity of | 12 |
| the positions submitted to those positions recognized for State | 13 |
| universities by the State Universities Civil Service System. | 14 |
| The Illinois Community College Board shall file a copy of its | 15 |
| findings with the System. The System shall consider the | 16 |
| findings of the Illinois Community College Board when making | 17 |
| determinations under this Section. The System shall not exclude | 18 |
| any earnings increases resulting from a promotion when the | 19 |
| promotion was not submitted by a community college. Nothing in | 20 |
| this subsection (k) shall require any community college to | 21 |
| submit any information to the Community College Board.
| 22 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 23 |
| eff. 7-31-06; 95-331, eff. 8-21-07.)
| 24 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 25 |
| Sec. 16-158. Contributions by State and other employing |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| units.
| 2 |
| (a) The State shall make contributions to the System by | 3 |
| means of
appropriations from the Common School Fund and other | 4 |
| State funds of amounts
which, together with other employer | 5 |
| contributions, employee contributions,
investment income, and | 6 |
| other income, will be sufficient to meet the cost of
| 7 |
| maintaining and administering the System on a 90% funded basis | 8 |
| in accordance
with actuarial recommendations.
| 9 |
| The Board shall determine the amount of State contributions | 10 |
| required for
each fiscal year on the basis of the actuarial | 11 |
| tables and other assumptions
adopted by the Board and the | 12 |
| recommendations of the actuary, using the formula
in subsection | 13 |
| (b-3).
| 14 |
| (a-1) Annually, on or before November 15, the Board shall | 15 |
| certify to the
Governor the amount of the required State | 16 |
| contribution for the coming fiscal
year. The certification | 17 |
| shall include a copy of the actuarial recommendations
upon | 18 |
| which it is based.
| 19 |
| On or before May 1, 2004, the Board shall recalculate and | 20 |
| recertify to
the Governor the amount of the required State | 21 |
| contribution to the System for
State fiscal year 2005, taking | 22 |
| into account the amounts appropriated to and
received by the | 23 |
| System under subsection (d) of Section 7.2 of the General
| 24 |
| Obligation Bond Act.
| 25 |
| On or before July 1, 2005, the Board shall recalculate and | 26 |
| recertify
to the Governor the amount of the required State
|
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| contribution to the System for State fiscal year 2006, taking | 2 |
| into account the changes in required State contributions made | 3 |
| by this amendatory Act of the 94th General Assembly.
| 4 |
| (b) Through State fiscal year 1995, the State contributions | 5 |
| shall be
paid to the System in accordance with Section 18-7 of | 6 |
| the School Code.
| 7 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 8 |
| of each month,
or as soon thereafter as may be practicable, the | 9 |
| Board shall submit vouchers
for payment of State contributions | 10 |
| to the System, in a total monthly amount of
one-twelfth of the | 11 |
| required annual State contribution certified under
subsection | 12 |
| (a-1).
From the
effective date of this amendatory Act of the | 13 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 14 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 15 |
| excess of the fiscal year 2004
certified contribution amount | 16 |
| determined under this Section
after taking into consideration | 17 |
| the transfer to the System
under subsection (a) of Section | 18 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 19 |
| the State Comptroller and
Treasurer by warrants drawn on the | 20 |
| funds appropriated to the System for that
fiscal year.
| 21 |
| If in any month the amount remaining unexpended from all | 22 |
| other appropriations
to the System for the applicable fiscal | 23 |
| year (including the appropriations to
the System under Section | 24 |
| 8.12 of the State Finance Act and Section 1 of the
State | 25 |
| Pension Funds Continuing Appropriation Act) is less than the | 26 |
| amount
lawfully vouchered under this subsection, the |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| difference shall be paid from the
Common School Fund under the | 2 |
| continuing appropriation authority provided in
Section 1.1 of | 3 |
| the State Pension Funds Continuing Appropriation Act.
| 4 |
| (b-2) Allocations from the Common School Fund apportioned | 5 |
| to school
districts not coming under this System shall not be | 6 |
| diminished or affected by
the provisions of this Article.
| 7 |
| (b-3) For State fiscal years 2011 through 2045, the minimum | 8 |
| contribution
to the System to be made by the State for each | 9 |
| fiscal year shall be an amount
determined by the System to be | 10 |
| sufficient to bring the total assets of the
System up to 90% of | 11 |
| the total actuarial liabilities of the System by the end of
| 12 |
| State fiscal year 2045. In making these determinations, the | 13 |
| required State
contribution shall be calculated each year as a | 14 |
| level percentage of payroll
over the years remaining to and | 15 |
| including fiscal year 2045 and shall be
determined under the | 16 |
| projected unit credit actuarial cost method.
| 17 |
| For State fiscal years 1996 through 2005, the State | 18 |
| contribution to the
System, as a percentage of the applicable | 19 |
| employee payroll, shall be increased
in equal annual increments | 20 |
| so that by State fiscal year 2011, the State is
contributing at | 21 |
| the rate required under this Section; except that in the
| 22 |
| following specified State fiscal years, the State contribution | 23 |
| to the System
shall not be less than the following indicated | 24 |
| percentages of the applicable
employee payroll, even if the | 25 |
| indicated percentage will produce a State
contribution in | 26 |
| excess of the amount otherwise required under this subsection
|
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| and subsection (a), and notwithstanding any contrary | 2 |
| certification made under
subsection (a-1) before the effective | 3 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 4 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 5 |
| 2003; and
13.56% in FY 2004.
| 6 |
| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution for State fiscal year 2006 is | 8 |
| $534,627,700.
| 9 |
| Notwithstanding any other provision of this Article, the | 10 |
| total required State
contribution for State fiscal year 2007 is | 11 |
| $738,014,500.
| 12 |
| For each of State fiscal years 2008 through 2010, the State | 13 |
| contribution to
the System, as a percentage of the applicable | 14 |
| employee payroll, shall be
increased in equal annual increments | 15 |
| from the required State contribution for State fiscal year | 16 |
| 2007, so that by State fiscal year 2011, the
State is | 17 |
| contributing at the rate otherwise required under this Section.
| 18 |
| Beginning in State fiscal year 2046, the minimum State | 19 |
| contribution for
each fiscal year shall be the amount needed to | 20 |
| maintain the total assets of
the System at 90% of the total | 21 |
| actuarial liabilities of the System.
| 22 |
| Amounts received by the System pursuant to Section 25 of | 23 |
| the Budget Stabilization Act or Section 8.12 of the State | 24 |
| Finance Act in any fiscal year do not reduce and do not | 25 |
| constitute payment of any portion of the minimum State | 26 |
| contribution required under this Article in that fiscal year. |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| Such amounts shall not reduce, and shall not be included in the | 2 |
| calculation of, the required State contributions under this | 3 |
| Article in any future year until the System has reached a | 4 |
| funding ratio of at least 90%. A reference in this Article to | 5 |
| the "required State contribution" or any substantially similar | 6 |
| term does not include or apply to any amounts payable to the | 7 |
| System under Section 25 of the Budget Stabilization Act. | 8 |
| Notwithstanding any other provision of this Section, the | 9 |
| required State
contribution for State fiscal year 2005 and for | 10 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 11 |
| under this Section and
certified under subsection (a-1), shall | 12 |
| not exceed an amount equal to (i) the
amount of the required | 13 |
| State contribution that would have been calculated under
this | 14 |
| Section for that fiscal year if the System had not received any | 15 |
| payments
under subsection (d) of Section 7.2 of the General | 16 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 17 |
| total debt service payments for that fiscal
year on the bonds | 18 |
| issued for the purposes of that Section 7.2, as determined
and | 19 |
| certified by the Comptroller, that is the same as the System's | 20 |
| portion of
the total moneys distributed under subsection (d) of | 21 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 22 |
| this maximum for State fiscal years 2008 through 2010, however, | 23 |
| the amount referred to in item (i) shall be increased, as a | 24 |
| percentage of the applicable employee payroll, in equal | 25 |
| increments calculated from the sum of the required State | 26 |
| contribution for State fiscal year 2007 plus the applicable |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| portion of the State's total debt service payments for fiscal | 2 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 3 |
| of the General
Obligation Bond Act, so that, by State fiscal | 4 |
| year 2011, the
State is contributing at the rate otherwise | 5 |
| required under this Section.
| 6 |
| (c) Payment of the required State contributions and of all | 7 |
| pensions,
retirement annuities, death benefits, refunds, and | 8 |
| other benefits granted
under or assumed by this System, and all | 9 |
| expenses in connection with the
administration and operation | 10 |
| thereof, are obligations of the State.
| 11 |
| If members are paid from special trust or federal funds | 12 |
| which are
administered by the employing unit, whether school | 13 |
| district or other
unit, the employing unit shall pay to the | 14 |
| System from such
funds the full accruing retirement costs based | 15 |
| upon that
service, as determined by the System. Employer | 16 |
| contributions, based on
salary paid to members from federal | 17 |
| funds, may be forwarded by the distributing
agency of the State | 18 |
| of Illinois to the System prior to allocation, in an
amount | 19 |
| determined in accordance with guidelines established by such
| 20 |
| agency and the System.
| 21 |
| (d) Effective July 1, 1986, any employer of a teacher as | 22 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 23 |
| employer's normal cost
of benefits based upon the teacher's | 24 |
| service, in addition to
employee contributions, as determined | 25 |
| by the System. Such employer
contributions shall be forwarded | 26 |
| monthly in accordance with guidelines
established by the |
|
|
|
HB5088 Engrossed |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| System.
| 2 |
| However, with respect to benefits granted under Section | 3 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 4 |
| of Section 16-106, the
employer's contribution shall be 12% | 5 |
| (rather than 20%) of the member's
highest annual salary rate | 6 |
| for each year of creditable service granted, and
the employer | 7 |
| shall also pay the required employee contribution on behalf of
| 8 |
| the teacher. For the purposes of Sections 16-133.4 and | 9 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 10 |
| 16-106 who is serving in that capacity
while on leave of | 11 |
| absence from another employer under this Article shall not
be | 12 |
| considered an employee of the employer from which the teacher | 13 |
| is on leave.
| 14 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 15 |
| shall pay to the System an employer contribution computed as | 16 |
| follows:
| 17 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 18 |
| employer
contribution shall be equal to 0.3% of each | 19 |
| teacher's salary.
| 20 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 21 |
| contribution shall be equal to 0.58% of each teacher's | 22 |
| salary.
| 23 |
| The school district or other employing unit may pay these | 24 |
| employer
contributions out of any source of funding available | 25 |
| for that purpose and
shall forward the contributions to the | 26 |
| System on the schedule established
for the payment of member |
|
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| 1 |
| contributions.
| 2 |
| These employer contributions are intended to offset a | 3 |
| portion of the cost
to the System of the increases in | 4 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 5 |
| Each employer of teachers is entitled to a credit against | 6 |
| the contributions
required under this subsection (e) with | 7 |
| respect to salaries paid to teachers
for the period January 1, | 8 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 9 |
| employer under subsection (a-5) of Section 6.6 of the State | 10 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 11 |
| paid to teachers for that
period.
| 12 |
| The additional 1% employee contribution required under | 13 |
| Section 16-152 by
this amendatory Act of 1998 is the | 14 |
| responsibility of the teacher and not the
teacher's employer, | 15 |
| unless the employer agrees, through collective bargaining
or | 16 |
| otherwise, to make the contribution on behalf of the teacher.
| 17 |
| If an employer is required by a contract in effect on May | 18 |
| 1, 1998 between the
employer and an employee organization to | 19 |
| pay, on behalf of all its full-time
employees
covered by this | 20 |
| Article, all mandatory employee contributions required under
| 21 |
| this Article, then the employer shall be excused from paying | 22 |
| the employer
contribution required under this subsection (e) | 23 |
| for the balance of the term
of that contract. The employer and | 24 |
| the employee organization shall jointly
certify to the System | 25 |
| the existence of the contractual requirement, in such
form as | 26 |
| the System may prescribe. This exclusion shall cease upon the
|
|
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| termination, extension, or renewal of the contract at any time | 2 |
| after May 1,
1998.
| 3 |
| (f) If the amount of a teacher's salary for any school year | 4 |
| used to determine final average salary exceeds the member's | 5 |
| annual full-time salary rate with the same employer for the | 6 |
| previous school year by more than 6%, the teacher's employer | 7 |
| shall pay to the System, in addition to all other payments | 8 |
| required under this Section and in accordance with guidelines | 9 |
| established by the System, the present value of the increase in | 10 |
| benefits resulting from the portion of the increase in salary | 11 |
| that is in excess of 6%. This present value shall be computed | 12 |
| by the System on the basis of the actuarial assumptions and | 13 |
| tables used in the most recent actuarial valuation of the | 14 |
| System that is available at the time of the computation. If a | 15 |
| teacher's salary for the 2005-2006 school year is used to | 16 |
| determine final average salary under this subsection (f), then | 17 |
| the changes made to this subsection (f) by Public Act 94-1057 | 18 |
| shall apply in calculating whether the increase in his or her | 19 |
| salary is in excess of 6%. For the purposes of this Section, | 20 |
| change in employment under Section 10-21.12 of the School Code | 21 |
| on or after June 1, 2005 shall constitute a change in employer. | 22 |
| The System may require the employer to provide any pertinent | 23 |
| information or documentation.
The changes made to this | 24 |
| subsection (f) by this amendatory Act of the 94th General | 25 |
| Assembly apply without regard to whether the teacher was in | 26 |
| service on or after its effective date.
|
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| Whenever it determines that a payment is or may be required | 2 |
| under this subsection, the System shall calculate the amount of | 3 |
| the payment and bill the employer for that amount. The bill | 4 |
| shall specify the calculations used to determine the amount | 5 |
| due. If the employer disputes the amount of the bill, it may, | 6 |
| within 30 days after receipt of the bill, apply to the System | 7 |
| in writing for a recalculation. The application must specify in | 8 |
| detail the grounds of the dispute and, if the employer asserts | 9 |
| that the calculation is subject to subsection (g) or (h) of | 10 |
| this Section, must include an affidavit setting forth and | 11 |
| attesting to all facts within the employer's knowledge that are | 12 |
| pertinent to the applicability of that subsection. Upon | 13 |
| receiving a timely application for recalculation, the System | 14 |
| shall review the application and, if appropriate, recalculate | 15 |
| the amount due.
| 16 |
| The employer contributions required under this subsection | 17 |
| (f) may be paid in the form of a lump sum within 90 days after | 18 |
| receipt of the bill. If the employer contributions are not paid | 19 |
| within 90 days after receipt of the bill, then interest will be | 20 |
| charged at a rate equal to the System's annual actuarially | 21 |
| assumed rate of return on investment compounded annually from | 22 |
| the 91st day after receipt of the bill. Payments must be | 23 |
| concluded within 3 years after the employer's receipt of the | 24 |
| bill.
| 25 |
| (g) This subsection (g) applies only to payments made or | 26 |
| salary increases given on or after June 1, 2005 but before July |
|
|
|
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| 1, 2011. The changes made by Public Act 94-1057 shall not | 2 |
| require the System to refund any payments received before
July | 3 |
| 31, 2006 (the effective date of Public Act 94-1057). | 4 |
| When assessing payment for any amount due under subsection | 5 |
| (f), the System shall exclude salary increases paid to teachers | 6 |
| under contracts or collective bargaining agreements entered | 7 |
| into, amended, or renewed before June 1, 2005.
| 8 |
| When assessing payment for any amount due under subsection | 9 |
| (f), the System shall exclude salary increases paid to a | 10 |
| teacher at a time when the teacher is 10 or more years from | 11 |
| retirement eligibility under Section 16-132 or 16-133.2.
| 12 |
| When assessing payment for any amount due under subsection | 13 |
| (f), the System shall exclude salary increases resulting from | 14 |
| overload work, including summer school, when the school | 15 |
| district has certified to the System, and the System has | 16 |
| approved the certification, that (i) the overload work is for | 17 |
| the sole purpose of classroom instruction in excess of the | 18 |
| standard number of classes for a full-time teacher in a school | 19 |
| district during a school year and (ii) the salary increases are | 20 |
| equal to or less than the rate of pay for classroom instruction | 21 |
| computed on the teacher's current salary and work schedule.
| 22 |
| When assessing payment for any amount due under subsection | 23 |
| (f), the System shall exclude a salary increase resulting from | 24 |
| a promotion (i) for which the employee is required to hold a | 25 |
| certificate or supervisory endorsement issued by the State | 26 |
| Teacher Certification Board that is a different certification |
|
|
|
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| or supervisory endorsement than is required for the teacher's | 2 |
| previous position and (ii) to a position that has existed and | 3 |
| been filled by a member for no less than one complete academic | 4 |
| year and the salary increase from the promotion is an increase | 5 |
| that results in an amount no greater than the lesser of the | 6 |
| average salary paid for other similar positions in the district | 7 |
| requiring the same certification or the amount stipulated in | 8 |
| the collective bargaining agreement for a similar position | 9 |
| requiring the same certification.
| 10 |
| When assessing payment for any amount due under subsection | 11 |
| (f), the System shall exclude any payment to the teacher from | 12 |
| the State of Illinois or the State Board of Education over | 13 |
| which the employer does not have discretion, notwithstanding | 14 |
| that the payment is included in the computation of final | 15 |
| average salary.
| 16 |
| (h) When assessing payment for any amount due under | 17 |
| subsection (f), the System shall exclude any salary increase | 18 |
| described in subsection (g) of this Section given on or after | 19 |
| July 1, 2011 but before July 1, 2014 under a contract or | 20 |
| collective bargaining agreement entered into, amended, or | 21 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 22 |
| Notwithstanding any other provision of this Section, any | 23 |
| payments made or salary increases given after June 30, 2014 | 24 |
| shall be used in assessing payment for any amount due under | 25 |
| subsection (f) of this Section.
| 26 |
| (i) The System shall prepare a report and file copies of |
|
|
|
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| the report with the Governor and the General Assembly by | 2 |
| January 1, 2007 that contains all of the following information: | 3 |
| (1) The number of recalculations required by the | 4 |
| changes made to this Section by Public Act 94-1057 for each | 5 |
| employer. | 6 |
| (2) The dollar amount by which each employer's | 7 |
| contribution to the System was changed due to | 8 |
| recalculations required by Public Act 94-1057. | 9 |
| (3) The total amount the System received from each | 10 |
| employer as a result of the changes made to this Section by | 11 |
| Public Act 94-4. | 12 |
| (4) The increase in the required State contribution | 13 |
| resulting from the changes made to this Section by Public | 14 |
| Act 94-1057.
| 15 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 16 |
| eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07.)
| 17 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 18 |
| Sec. 18-131. Financing; employer contributions.
| 19 |
| (a) The State of Illinois shall make contributions to this | 20 |
| System by
appropriations of the amounts which, together with | 21 |
| the contributions of
participants, net earnings on | 22 |
| investments, and other income, will meet the
costs of | 23 |
| maintaining and administering this System on a 90% funded basis | 24 |
| in
accordance with actuarial recommendations.
| 25 |
| (b) The Board shall determine the amount of State |
|
|
|
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| 1 |
| contributions
required for each fiscal year on the basis of the | 2 |
| actuarial tables and other
assumptions adopted by the Board and | 3 |
| the prescribed rate of interest, using
the formula in | 4 |
| subsection (c).
| 5 |
| (c) For State fiscal years 2011 through 2045, the minimum | 6 |
| contribution
to the System to be made by the State for each | 7 |
| fiscal year shall be an amount
determined by the System to be | 8 |
| sufficient to bring the total assets of the
System up to 90% of | 9 |
| the total actuarial liabilities of the System by the end of
| 10 |
| State fiscal year 2045. In making these determinations, the | 11 |
| required State
contribution shall be calculated each year as a | 12 |
| level percentage of payroll
over the years remaining to and | 13 |
| including fiscal year 2045 and shall be
determined under the | 14 |
| projected unit credit actuarial cost method.
| 15 |
| For State fiscal years 1996 through 2005, the State | 16 |
| contribution to
the System, as a percentage of the applicable | 17 |
| employee payroll, shall be
increased in equal annual increments | 18 |
| so that by State fiscal year 2011, the
State is contributing at | 19 |
| the rate required under this Section.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2006 is | 22 |
| $29,189,400.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State
contribution for State fiscal year 2007 is | 25 |
| $35,236,800.
| 26 |
| For each of State fiscal years 2008 through 2010, the State |
|
|
|
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| 1 |
| contribution to
the System, as a percentage of the applicable | 2 |
| employee payroll, shall be
increased in equal annual increments | 3 |
| from the required State contribution for State fiscal year | 4 |
| 2007, so that by State fiscal year 2011, the
State is | 5 |
| contributing at the rate otherwise required under this Section.
| 6 |
| Beginning in State fiscal year 2046, the minimum State | 7 |
| contribution for
each fiscal year shall be the amount needed to | 8 |
| maintain the total assets of
the System at 90% of the total | 9 |
| actuarial liabilities of the System.
| 10 |
| Amounts received by the System pursuant to Section 25 of | 11 |
| the Budget Stabilization Act or Section 8.12 of the State | 12 |
| Finance Act in any fiscal year do not reduce and do not | 13 |
| constitute payment of any portion of the minimum State | 14 |
| contribution required under this Article in that fiscal year. | 15 |
| Such amounts shall not reduce, and shall not be included in the | 16 |
| calculation of, the required State contributions under this | 17 |
| Article in any future year until the System has reached a | 18 |
| funding ratio of at least 90%. A reference in this Article to | 19 |
| the "required State contribution" or any substantially similar | 20 |
| term does not include or apply to any amounts payable to the | 21 |
| System under Section 25 of the Budget Stabilization Act.
| 22 |
| Notwithstanding any other provision of this Section, the | 23 |
| required State
contribution for State fiscal year 2005 and for | 24 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 25 |
| under this Section and
certified under Section 18-140, shall | 26 |
| not exceed an amount equal to (i) the
amount of the required |
|
|
|
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| 1 |
| State contribution that would have been calculated under
this | 2 |
| Section for that fiscal year if the System had not received any | 3 |
| payments
under subsection (d) of Section 7.2 of the General | 4 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 5 |
| total debt service payments for that fiscal
year on the bonds | 6 |
| issued for the purposes of that Section 7.2, as determined
and | 7 |
| certified by the Comptroller, that is the same as the System's | 8 |
| portion of
the total moneys distributed under subsection (d) of | 9 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 10 |
| this maximum for State fiscal years 2008 through 2010, however, | 11 |
| the amount referred to in item (i) shall be increased, as a | 12 |
| percentage of the applicable employee payroll, in equal | 13 |
| increments calculated from the sum of the required State | 14 |
| contribution for State fiscal year 2007 plus the applicable | 15 |
| portion of the State's total debt service payments for fiscal | 16 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 17 |
| of the General
Obligation Bond Act, so that, by State fiscal | 18 |
| year 2011, the
State is contributing at the rate otherwise | 19 |
| required under this Section.
| 20 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 21 |
| eff. 6-6-06.)
| 22 |
| Section 15. The State Pension Funds Continuing | 23 |
| Appropriation Act is amended by changing Section 1 as follows:
| 24 |
| (40 ILCS 15/1)
|
|
|
|
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| 1 |
| Sec. 1. Appropriations from State Pensions Fund. For the | 2 |
| purpose of making
up any deficiency in the appropriations to | 3 |
| the designated retirement systems
that are required to be made | 4 |
| under Section 8.12 of the State Finance Act, there
is hereby | 5 |
| appropriated, on a continuing annual basis in each fiscal year, | 6 |
| from
the State Pensions Fund to each designated retirement | 7 |
| system, the amount, if
any, by which the total appropriation to | 8 |
| that system from the State Pensions
Fund for that fiscal year | 9 |
| is less than the amount required to be appropriated
to that | 10 |
| retirement system under Section 8.12 of the State Finance Act.
| 11 |
| The annual appropriation under this Section to each | 12 |
| designated retirement
system shall take effect on July 1 for | 13 |
| the State fiscal year beginning on that
date.
| 14 |
| The amount of any continuing appropriation used by a | 15 |
| retirement system
under this Section for a given fiscal year | 16 |
| shall be charged against the
unexpended amount of any | 17 |
| appropriation to that retirement system for
that fiscal year | 18 |
| under Section 8.12 of the State Finance Act that subsequently
| 19 |
| becomes available, subject to Section 8.3 of the State Finance | 20 |
| Act.
| 21 |
| "Designated retirement systems" means the State Employees' | 22 |
| Retirement
System of Illinois, the Teachers' Retirement System | 23 |
| of the State of
Illinois, the State Universities Retirement | 24 |
| System, the Judges Retirement
System of Illinois, and the | 25 |
| General Assembly Retirement System.
| 26 |
| The appropriations made in this Section are appropriated to |
|
|
|
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| 1 |
| the designated
retirement systems for the funding of the | 2 |
| unfunded liabilities of the designated retirement systems and | 3 |
| are in addition to, and not in lieu of, any State contributions | 4 |
| required under the Illinois Pension Code. as a part of the | 5 |
| annual State contribution required by the
laws providing for | 6 |
| the funding of those systems.
| 7 |
| (Source: P.A. 93-1067, eff. 1-15-05.)
| 8 |
| Section 20. The Uniform Disposition of Unclaimed Property | 9 |
| Act is amended by changing Section 18 as follows:
| 10 |
| (765 ILCS 1025/18) (from Ch. 141, par. 118)
| 11 |
| Sec. 18. Deposit of funds received under the Act.
| 12 |
| (a) The State Treasurer shall retain all funds received | 13 |
| under this Act,
including the proceeds from
the sale of | 14 |
| abandoned property under Section 17, in a trust fund . The State | 15 |
| Treasurer may deposit any amount in the Trust Fund into the | 16 |
| State Pensions Fund during the fiscal year at his or her | 17 |
| discretion; however, he or she and shall,
on April 15 and | 18 |
| October 15 of each year, deposit any amount in the trust fund
| 19 |
| exceeding $2,500,000 into the State Pensions Fund. All amounts | 20 |
| in excess of $2,500,000 that are deposited into the State | 21 |
| Pension Fund from the unclaimed Property Trust Fund shall be | 22 |
| apportioned to the designated retirement systems as provided in | 23 |
| subsection (c-6) of Section 8.12 of the state Finance Act to | 24 |
| reduce their actuarial reserve deficiencies. He or she shall |
|
|
|
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| 1 |
| make prompt payment of claims he or she
duly allows as provided | 2 |
| for in this Act for the trust fund.
Before making the deposit | 3 |
| the State Treasurer
shall record the name and last known | 4 |
| address of each person appearing from the
holders' reports to | 5 |
| be entitled to the abandoned property. The record shall be
| 6 |
| available for public inspection during reasonable business
| 7 |
| hours.
| 8 |
| (b) Before making any deposit to the credit of the State | 9 |
| Pensions Fund,
the State Treasurer may deduct: (1) any costs in | 10 |
| connection with sale of
abandoned property, (2) any costs of | 11 |
| mailing and publication in connection with
any abandoned | 12 |
| property, and (3) any costs in connection with the maintenance | 13 |
| of
records or disposition of claims made pursuant to this Act. | 14 |
| The State
Treasurer shall semiannually file an itemized report | 15 |
| of all such expenses with
the Legislative Audit Commission.
| 16 |
| (Source: P.A. 93-531, eff. 8-14-03.)
| 17 |
| Section 99. Effective date. This Act takes effect upon | 18 |
| becoming law.
|
|
|
|
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| 1 |
|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 30 ILCS 105/8.12 | from Ch. 127, par. 144.12 |
| 4 |
| 40 ILCS 5/2-124 |
from Ch. 108 1/2, par. 2-124 |
| 5 |
| 40 ILCS 5/14-131 | from Ch. 108 1/2, par. 14-131 |
| 6 |
| 40 ILCS 5/15-155 |
from Ch. 108 1/2, par. 15-155 |
| 7 |
| 40 ILCS 5/16-158 | from Ch. 108 1/2, par. 16-158 |
| 8 |
| 40 ILCS 5/18-131 |
from Ch. 108 1/2, par. 18-131 |
| 9 |
| 40 ILCS 15/1 |
|
| 10 |
| 765 ILCS 1025/18 |
from Ch. 141, par. 118 |
| |
|