Public Act 93-0002
HB2660 Enrolled LRB093 04138 RCE 04181 b
AN ACT concerning bonds.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.595 as follows:
(30 ILCS 105/5.595 new)
Sec. 5.595. The Pension Contribution Fund.
Section 10. The General Obligation Bond Act is amended
by changing Sections 2, 8, 12, 13, and 15 and adding Section
7.2 as follows:
(30 ILCS 330/2) (from Ch. 127, par. 652)
Sec. 2. Authorization for Bonds. The State of Illinois
is authorized to issue, sell and provide for the retirement
of General Obligation Bonds of the State of Illinois for the
categories and specific purposes expressed in Sections 2
through 8 of this Act, in the total amount of $27,658,149,369
$17,658,149,369 $16,908,149,369 $16,015,007,500.
The bonds authorized in this Section 2 and in Section 16
of this Act are herein called "Bonds".
Of the total amount of Bonds authorized in this Act, up
to $2,200,000,000 in aggregate original principal amount may
be issued and sold in accordance with the Baccalaureate
Savings Act in the form of General Obligation College Savings
Bonds.
Of the total amount of Bonds authorized in this Act, up
to $300,000,000 in aggregate original principal amount may be
issued and sold in accordance with the Retirement Savings Act
in the form of General Obligation Retirement Savings Bonds.
Of the total amount of Bonds authorized in this Act, the
additional $10,000,000,000 authorized by this amendatory Act
of the 93rd General Assembly shall be used solely as provided
in Section 7.2.
The issuance and sale of Bonds pursuant to the General
Obligation Bond Act is an economical and efficient method of
financing the capital and general operating needs of the
State. This Act will permit the issuance of a multi-purpose
General Obligation Bond with uniform terms and features.
This will not only lower the cost of registration but also
reduce the overall cost of issuing debt by improving the
marketability of Illinois General Obligation Bonds.
(Source: P.A. 91-39, eff. 6-15-99; 91-53, eff 6-30-99;
91-710, eff. 5-17-00; 92-13, eff. 6-22-01; 92-596, eff.
6-28-02; 92-598, eff. 6-28-02; revised 10-8-02.)
(30 ILCS 330/7.2 new)
Sec. 7.2. State pension funding.
(a) The amount of $10,000,000,000 is authorized to be
used for the purpose of making contributions to the
designated retirement systems. For the purposes of this
Section, "designated retirement systems" means the State
Employees' Retirement System of Illinois; the Teachers'
Retirement System of the State of Illinois; the State
Universities Retirement System; the Judges Retirement System
of Illinois; and the General Assembly Retirement System.
(b) The Pension Contribution Fund is created as a
special fund in the State Treasury.
The proceeds of the additional $10,000,000,000 of Bonds
authorized by this amendatory Act of the 93rd General
Assembly, less the amounts authorized in the Bond Sale Order
to be deposited directly into the capitalized interest
account of the General Obligation Bond Retirement and
Interest Fund or otherwise directly paid out for bond sale
expenses under Section 8, shall be deposited into the Pension
Contribution Fund and used as provided in this Section.
(c) Of the amount of Bond proceeds first deposited into
the Pension Contribution Fund, there shall be reserved for
transfers under this subsection the sum of $300,000,000,
representing the required State contributions to the
designated retirement systems for the last quarter of State
fiscal year 2003, plus the sum of $1,860,000,000,
representing the required State contributions to the
designated retirement systems for State fiscal year 2004.
Upon the deposit of sufficient moneys into the Pension
Contribution Fund, the Comptroller and Treasurer shall
immediately transfer the sum of $300,000,000 from the Pension
Contribution Fund to the General Revenue Fund.
Whenever any payment of required State contributions for
State fiscal year 2004 is made to one of the designated
retirement systems, the Comptroller and Treasurer shall, as
soon as practicable, transfer from the Pension Contribution
Fund to the General Revenue Fund an amount equal to the
amount of that payment to the designated retirement system.
If the amount reserved for these transfers exceeds the total
amount of fiscal year 2004 payments of required State
contributions to the designated retirement systems, the
Comptroller and Treasurer shall continue to make such
transfers based on fiscal year 2005 payments until the entire
amount reserved has been transferred.
(d) All amounts deposited into the Pension Contribution
Fund, other than the amounts reserved for the transfers under
subsection (c), shall be appropriated to the designated
retirement systems to reduce their actuarial reserve
deficiencies. The amount of the appropriation to each
designated retirement system shall constitute a portion of
the total appropriation under this subsection that is the
same as that retirement system's portion of the total
actuarial reserve deficiency of the systems, as most recently
determined by the Bureau of the Budget under Section 8.12 of
the State Finance Act.
Within 15 days after any Bond proceeds in excess of the
amounts initially reserved under subsection (c) are deposited
into the Pension Contribution Fund, the Bureau of the Budget
shall (i) allocate those proceeds among the designated
retirement systems in proportion to their respective
actuarial reserve deficiencies, as most recently determined
under Section 8.12 of the State Finance Act, and (ii) certify
those allocations to the designated retirement systems and
the Comptroller.
Upon receiving certification of an allocation under this
subsection, a designated retirement system shall submit to
the Comptroller a voucher for the amount of its allocation.
The voucher shall be paid out of the amount appropriated to
that designated retirement system from the Pension
Contribution Fund pursuant to this subsection.
(30 ILCS 330/8) (from Ch. 127, par. 658)
Sec. 8. Bond sale expenses; capitalized interest.
(a) An amount not to exceed 0.5 percent of the principal
amount of the proceeds of sale of each bond sale is
authorized to be used to pay the reasonable costs of issuance
and sale of State of Illinois general obligation bonds
authorized and sold pursuant to this Act.
(b) The Bond Sale Order may provide for a portion of the
proceeds of the bond sale, representing up to 12 months'
interest on the bonds, to be deposited directly into the
capitalized interest account of the General Obligation Bond
Retirement and Interest Fund.
(Source: P.A. 83-1490.)
(30 ILCS 330/12) (from Ch. 127, par. 662)
Sec. 12. Allocation of Proceeds from Sale of Bonds.
(a) Proceeds from the sale of Bonds, authorized by
Section 3 of this Act, shall be deposited in the separate
fund known as the Capital Development Fund.
(b) Proceeds from the sale of Bonds, authorized by
paragraph (a) of Section 4 of this Act, shall be deposited in
the separate fund known as the Transportation Bond, Series A
Fund.
(c) Proceeds from the sale of Bonds, authorized by
paragraphs (b) and (c) of Section 4 of this Act, shall be
deposited in the separate fund known as the Transportation
Bond, Series B Fund.
(d) Proceeds from the sale of Bonds, authorized by
Section 5 of this Act, shall be deposited in the separate
fund known as the School Construction Fund.
(e) Proceeds from the sale of Bonds, authorized by
Section 6 of this Act, shall be deposited in the separate
fund known as the Anti-Pollution Fund.
(f) Proceeds from the sale of Bonds, authorized by
Section 7 of this Act, shall be deposited in the separate
fund known as the Coal Development Fund.
(f-2) Proceeds from the sale of Bonds, authorized by
Section 7.2 of this Act, shall be deposited as set forth in
Section 7.2.
(f-5) Proceeds from the sale of Bonds, authorized by
Section 7.5 of this Act, shall be deposited as set forth in
Section 7.5.
(g) Proceeds from the sale of Bonds, authorized by
Section 8 of this Act, shall be deposited in the Capital
Development Fund.
(h) Subsequent to the issuance of any Bonds for the
purposes described in Sections 2 through 8 of this Act, the
Governor and the Director of the Bureau of the Budget may
provide for the reallocation of unspent proceeds of such
Bonds to any other purposes authorized under said Sections of
this Act, subject to the limitations on aggregate principal
amounts contained therein. Upon any such reallocation, such
unspent proceeds shall be transferred to the appropriate
funds as determined by reference to paragraphs (a) through
(g) of this Section.
(Source: P.A. 92-596, eff. 6-28-02.)
(30 ILCS 330/13) (from Ch. 127, par. 663)
Sec. 13. Appropriation of Proceeds from Sale of Bonds.
(a) At all times, the proceeds from the sale of Bonds
issued pursuant to this Act are subject to appropriation by
the General Assembly and, except as provided in Section 7.2,
may be obligated or expended only with the written approval
of the Governor, in such amounts, at such times, and for such
purposes as the respective State agencies, as defined in
Section 1-7 of the Illinois State Auditing Act, as amended,
deem necessary or desirable for the specific purposes
contemplated in Sections 2 through 8 of this Act.
(b) Proceeds from the sale of Bonds for the purpose of
development of coal and alternative forms of energy shall be
expended in such amounts and at such times as the Department
of Commerce and Community Affairs, with the advice and
recommendation of the Illinois Coal Development Board for
coal development projects, may deem necessary and desirable
for the specific purpose contemplated by Section 7 of this
Act. In considering the approval of projects to be funded,
the Department of Commerce and Community Affairs shall give
special consideration to projects designed to remove sulfur
and other pollutants in the preparation and utilization of
coal, and in the use and operation of electric utility
generating plants and industrial facilities which utilize
Illinois coal as their primary source of fuel.
(c) Any monies received by any officer or employee of
the state representing a reimbursement of expenditures
previously paid from general obligation bond proceeds shall
be deposited into the General Obligation Bond Retirement and
Interest Fund authorized in Section 14 of this Act.
(Source: P.A. 89-445, eff. 2-7-96; 90-348, eff. 1-1-98.)
(30 ILCS 330/15) (from Ch. 127, par. 665)
Sec. 15. Computation of Principal and Interest;
transfers. Transfer from General Revenue Fund.
(a) Upon each delivery of Bonds authorized to be issued
under this Act, the Comptroller shall compute and certify to
the Treasurer the total amount of principal of, interest on,
and premium, if any, on Bonds issued that will be payable in
order to retire such Bonds and the amount of principal of,
interest on and premium, if any, on such Bonds that will be
payable on each payment date according to the tenor of such
Bonds during the then current and each succeeding fiscal
year.
On or before the last day of each month the State
Treasurer and Comptroller shall transfer from (1) the Road
Fund with respect to Bonds issued under paragraph (a) of
Section 4 of this Act or Bonds issued for the purpose of
refunding such bonds, and from (2) the General Revenue Fund,
with respect to all other Bonds issued under this Act, to the
General Obligation Bond Retirement and Interest Fund an
amount sufficient to pay the aggregate of the principal of,
interest on, and premium, if any, on Bonds payable, by their
terms on the next payment date divided by the number of full
calendar months between the date of such Bonds and the first
such payment date, and thereafter, divided by the number of
months between each succeeding payment date after the first.
Such computations and transfers shall be made for each series
of Bonds issued and delivered. Interest for which moneys
have already been deposited into the capitalized interest
account within the General Obligation Bond Retirement and
Interest Fund shall not be included in the calculation of the
amounts to be transferred under this subsection.
The transfer of monies herein and above directed is not
required if monies in the General Obligation Bond Retirement
and Interest Fund are more than the amount otherwise to be
transferred as herein above provided, and if the Governor or
his authorized representative notifies the State Treasurer
and Comptroller of such fact in writing.
(b) After the effective date of this Act, the balance
of, and monies directed to be included in the Capital
Development Bond Retirement and Interest Fund, Anti-Pollution
Bond Retirement and Interest Fund, Transportation Bond,
Series A Retirement and Interest Fund, Transportation Bond,
Series B Retirement and Interest Fund, and Coal Development
Bond Retirement and Interest Fund shall be transferred to and
deposited in the General Obligation Bond Retirement and
Interest Fund. This Fund shall be used to make debt service
payments on the State's general obligation Bonds heretofore
issued which are now outstanding and payable from the Funds
herein listed as well as on Bonds issued under this Act.
(c) The unused portion of federal funds received for a
capital facilities project, as authorized by Section 3 of
this Act, for which monies from the Capital Development Fund
have been expended shall be deposited upon completion of the
project in the General Obligation Bond Retirement and
Interest Fund. Any federal funds received as reimbursement
for the completed construction of a capital facilities
project, as authorized by Section 3 of this Act, for which
monies from the Capital Development Fund have been expended
shall be deposited in the General Obligation Bond Retirement
and Interest Fund.
(Source: P.A. 84-952.)
Section 15. The Illinois Pension Code is amended by
changing Sections 2-124, 2-134, 14-131, 14-135.08, 15-155,
15-165, 16-158, 18-131, and 18-140 as follows:
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with the
contributions of participants, interest earned on
investments, and other income will meet the cost of
maintaining and administering the System on a 90% funded
basis in accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the prescribed rate of interest, using the formula
in subsection (c).
(c) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and
each fiscal year thereafter, as calculated under this Section
and certified under Section 2-134, shall not exceed an amount
equal to (i) the amount of the required State contribution
that would have been calculated under this Section for that
fiscal year if the System had not received any payments under
subsection (d) of Section 7.2 of the General Obligation Bond
Act, minus (ii) the portion of the State's total debt service
payments for that fiscal year on the bonds issued for the
purposes of that Section 7.2, as determined and certified by
the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section
7.2 of the General Obligation Bond Act.
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
Sec. 2-134. To certify required State contributions and
submit vouchers.
(a) The Board shall certify to the Governor on or before
November 15 of each year the amount of the required State
contribution to the System for the next fiscal year. The
certification shall include a copy of the actuarial
recommendations upon which it is based.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
(b) Beginning in State fiscal year 1996, on or as soon
as possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). These vouchers shall be paid by the State Comptroller
and Treasurer by warrants drawn on the funds appropriated to
the System for that fiscal year. If in any month the amount
remaining unexpended from all other appropriations to the
System for the applicable fiscal year (including the
appropriations to the System under Section 8.12 of the State
Finance Act and Section 1 of the State Pension Funds
Continuing Appropriation Act) is less than the amount
lawfully vouchered under this Section, the difference shall
be paid from the General Revenue Fund under the continuing
appropriation authority provided in Section 1.1 of the State
Pension Funds Continuing Appropriation Act.
(c) The full amount of any annual appropriation for the
System for State fiscal year 1995 shall be transferred and
made available to the System at the beginning of that fiscal
year at the request of the Board. Any excess funds remaining
at the end of any fiscal year from appropriations shall be
retained by the System as a general reserve to meet the
System's accrued liabilities.
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
Sec. 14-131. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering
the System on a 90% funded basis in accordance with actuarial
recommendations.
For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that
are picked up or otherwise paid by the State or a department
on behalf of the employee.
(b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board, using the formula in subsection (e).
The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that
fiscal year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act
and Section 1 of the State Pension Funds Continuing
Appropriation Act, if any, for the fiscal year ending on the
June 30 immediately preceding the applicable November 15
certification deadline), the estimated payroll (including all
forms of compensation) for personal services rendered by
eligible employees, and the recommendations of the actuary.
For the purposes of this Section and Section 14.1 of the
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may
elect to participate in the System but have not so elected,
persons who are serving a qualifying period that is required
for participation, and annuitants employed by a department as
described in subdivision (a)(1) or (a)(2) of Section 14-111.
(c) Contributions shall be made by the several
departments for each pay period by warrants drawn by the
State Comptroller against their respective funds or
appropriations based upon vouchers stating the amount to be
so contributed. These amounts shall be based on the full
rate certified by the Board under Section 14-135.08 for that
fiscal year.
(d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid
by the State.
(e) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that (i) for State fiscal year 1998, for all purposes of this
Code and any other law of this State, the certified
percentage of the applicable employee payroll shall be 5.052%
for employees earning eligible creditable service under
Section 14-110 and 6.500% for all other employees,
notwithstanding any contrary certification made under Section
14-135.08 before the effective date of this amendatory Act of
1997, and (ii) in the following specified State fiscal years,
the State contribution to the System shall not be less than
the following indicated percentages of the applicable
employee payroll, even if the indicated percentage will
produce a State contribution in excess of the amount
otherwise required under this subsection and subsection (a):
9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in
FY 2002; 10.6% in FY 2003; and 10.8% in FY 2004; 11.0% in FY
2005; 11.2% in FY 2006; 11.4% in FY 2007; 11.6% in FY 2008;
and 11.8% in FY 2009.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and
each fiscal year thereafter, as calculated under this Section
and certified under Section 14-135.08, shall not exceed an
amount equal to (i) the amount of the required State
contribution that would have been calculated under this
Section for that fiscal year if the System had not received
any payments under subsection (d) of Section 7.2 of the
General Obligation Bond Act, minus (ii) the portion of the
State's total debt service payments for that fiscal year on
the bonds issued for the purposes of that Section 7.2, as
determined and certified by the Comptroller, that is the same
as the System's portion of the total moneys distributed under
subsection (d) of Section 7.2 of the General Obligation Bond
Act.
(Source: P.A. 89-136, eff. 7-14-95; 90-65, eff. 7-7-97.)
(40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
Sec. 14-135.08. To certify required State contributions.
To certify to the Governor and to each department, on or
before November 15 of each year, the required rate for State
contributions to the System for the next State fiscal year,
as determined under subsection (b) of Section 14-131. The
certification to the Governor shall include a copy of the
actuarial recommendations upon which the rate is based.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor and to each department the amount
of the required State contribution to the System and the
required rates for State contributions to the System for
State fiscal year 2005, taking into account the amounts
appropriated to and received by the System under subsection
(d) of Section 7.2 of the General Obligation Bond Act.
(Source: P.A. 88-593, eff. 8-22-94; 89-136, eff. 7-14-95.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded
basis in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (a-1).
(a-1) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and
each fiscal year thereafter, as calculated under this Section
and certified under Section 15-165, shall not exceed an
amount equal to (i) the amount of the required State
contribution that would have been calculated under this
Section for that fiscal year if the System had not received
any payments under subsection (d) of Section 7.2 of the
General Obligation Bond Act, minus (ii) the portion of the
State's total debt service payments for that fiscal year on
the bonds issued for the purposes of that Section 7.2, as
determined and certified by the Comptroller, that is the same
as the System's portion of the total moneys distributed under
subsection (d) of Section 7.2 of the General Obligation Bond
Act.
(b) If an employee is paid from trust or federal funds,
the employer shall pay to the Board contributions from those
funds which are sufficient to cover the accruing normal costs
on behalf of the employee. However, universities having
employees who are compensated out of local auxiliary funds,
income funds, or service enterprise funds are not required to
pay such contributions on behalf of those employees. The
local auxiliary funds, income funds, and service enterprise
funds of universities shall not be considered trust funds for
the purpose of this Article, but funds of alumni
associations, foundations, and athletic associations which
are affiliated with the universities included as employers
under this Article and other employers which do not receive
State appropriations are considered to be trust funds for the
purpose of this Article.
(b-1) The City of Urbana and the City of Champaign shall
each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The
rate of contributions to be made by those municipalities
shall be determined annually by the Board on the basis of the
actuarial assumptions adopted by the Board and the
recommendations of the actuary, and shall be expressed as a
percentage of salary for each such employee. The Board shall
certify the rate to the affected municipalities as soon as
may be practical. The employer contributions required under
this subsection shall be remitted by the municipality to the
System at the same time and in the same manner as employee
contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or
other funds, in accordance with actuarial procedures approved
by the Board. State of Illinois contributions for employers
receiving State appropriations for personal services shall be
payable from appropriations made to the employers or to the
System. The contributions for Class I community colleges
covering earnings other than those paid from trust and
federal funds, shall be payable solely from appropriations to
the Illinois Community College Board or the System for
employer contributions.
(d) Beginning in State fiscal year 1996, the required
State contributions to the System shall be appropriated
directly to the System and shall be payable through vouchers
issued in accordance with subsection (c) of Section 15-165.
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System
because of the credits earned for service rendered by the
participants during the fiscal year and expenses of
administering the System, but shall not include the principal
of or any redemption premium or interest on any bonds issued
by the Board or any expenses incurred or deposits required in
connection therewith.
(Source: P.A. 89-602, eff. 8-2-96; 90-576, eff. 3-31-98.)
(40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
Sec. 15-165. To certify amounts and submit vouchers.
(a) The Board shall certify to the Governor on or before
November 15 of each year the appropriation required from
State funds for the purposes of this System for the following
fiscal year. The certification shall include a copy of the
actuarial recommendations upon which it is based.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
(b) The Board shall certify to the State Comptroller or
employer, as the case may be, from time to time, by its
president and secretary, with its seal attached, the amounts
payable to the System from the various funds.
(c) Beginning in State fiscal year 1996, on or as soon
as possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). These vouchers shall be paid by the State Comptroller
and Treasurer by warrants drawn on the funds appropriated to
the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under
Section 8.12 of the State Finance Act and Section 1 of the
State Pension Funds Continuing Appropriation Act) is less
than the amount lawfully vouchered under this Section, the
difference shall be paid from the General Revenue Fund under
the continuing appropriation authority provided in Section
1.1 of the State Pension Funds Continuing Appropriation Act.
(d) So long as the payments received are the full amount
lawfully vouchered under this Section, payments received by
the System under this Section shall be applied first toward
the employer contribution to the self-managed plan
established under Section 15-158.2. Payments shall be
applied second toward the employer's portion of the normal
costs of the System, as defined in subsection (f) of Section
15-155. The balance shall be applied toward the unfunded
actuarial liabilities of the System.
(e) In the event that the System does not receive, as a
result of legislative enactment or otherwise, payments
sufficient to fully fund the employer contribution to the
self-managed plan established under Section 15-158.2 and to
fully fund that portion of the employer's portion of the
normal costs of the System, as calculated in accordance with
Section 15-155(a-1), then any payments received shall be
applied proportionately to the optional retirement program
established under Section 15-158.2 and to the employer's
portion of the normal costs of the System, as calculated in
accordance with Section 15-155(a-1).
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded
basis in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3).
(a-1) Annually, on or before November 15, the Board
shall certify to the Governor the amount of the required
State contribution for the coming fiscal year. The
certification shall include a copy of the actuarial
recommendations upon which it is based.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.
(b-1) Beginning in State fiscal year 1996, on the 15th
day of each month, or as soon thereafter as may be
practicable, the Board shall submit vouchers for payment of
State contributions to the System, in a total monthly amount
of one-twelfth of the required annual State contribution
certified under subsection (a-1). These vouchers shall be
paid by the State Comptroller and Treasurer by warrants drawn
on the funds appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under
Section 8.12 of the State Finance Act and Section 1 of the
State Pension Funds Continuing Appropriation Act) is less
than the amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under
the continuing appropriation authority provided in Section
1.1 of the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund
apportioned to school districts not coming under this System
shall not be diminished or affected by the provisions of this
Article.
(b-3) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a
State contribution in excess of the amount otherwise required
under this subsection and subsection (a), and notwithstanding
any contrary certification made under subsection (a-1) before
the effective date of this amendatory Act of 1998: 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2002; 12.86% in FY 2003; and 13.56% in FY 2004; 14.25% in FY
2005; 14.95% in FY 2006; 15.65% in FY 2007; 16.34% in FY
2008; 17.04% in FY 2009; and 17.74% in FY 2010.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and
each fiscal year thereafter, as calculated under this Section
and certified under subsection (a-1), shall not exceed an
amount equal to (i) the amount of the required State
contribution that would have been calculated under this
Section for that fiscal year if the System had not received
any payments under subsection (d) of Section 7.2 of the
General Obligation Bond Act, minus (ii) the portion of the
State's total debt service payments for that fiscal year on
the bonds issued for the purposes of that Section 7.2, as
determined and certified by the Comptroller, that is the same
as the System's portion of the total moneys distributed under
subsection (d) of Section 7.2 of the General Obligation Bond
Act.
(c) Payment of the required State contributions and of
all pensions, retirement annuities, death benefits, refunds,
and other benefits granted under or assumed by this System,
and all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs
based upon that service, as determined by the System.
Employer contributions, based on salary paid to members from
federal funds, may be forwarded by the distributing agency of
the State of Illinois to the System prior to allocation, in
an amount determined in accordance with guidelines
established by such agency and the System.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be
forwarded monthly in accordance with guidelines established
by the System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf
of the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999,
the employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from this amendatory Act of
1998.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January
1, 2002 through June 30, 2003, equal to the amount paid by
that employer under subsection (a-5) of Section 6.6 of the
State Employees Group Insurance Act of 1971 with respect to
salaries paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by this amendatory Act of 1998 is the
responsibility of the teacher and not the teacher's employer,
unless the employer agrees, through collective bargaining or
otherwise, to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer
and the employee organization shall jointly certify to the
System the existence of the contractual requirement, in such
form as the System may prescribe. This exclusion shall cease
upon the termination, extension, or renewal of the contract
at any time after May 1, 1998.
(Source: P.A. 92-505, eff. 12-20-01.)
(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
Sec. 18-131. Financing; employer contributions.
(a) The State of Illinois shall make contributions to
this System by appropriations of the amounts which, together
with the contributions of participants, net earnings on
investments, and other income, will meet the costs of
maintaining and administering this System on a 90% funded
basis in accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the prescribed rate of interest, using the formula
in subsection (c).
(c) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and
each fiscal year thereafter, as calculated under this Section
and certified under Section 18-140, shall not exceed an
amount equal to (i) the amount of the required State
contribution that would have been calculated under this
Section for that fiscal year if the System had not received
any payments under subsection (d) of Section 7.2 of the
General Obligation Bond Act, minus (ii) the portion of the
State's total debt service payments for that fiscal year on
the bonds issued for the purposes of that Section 7.2, as
determined and certified by the Comptroller, that is the same
as the System's portion of the total moneys distributed under
subsection (d) of Section 7.2 of the General Obligation Bond
Act.
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140)
Sec. 18-140. To certify required State contributions and
submit vouchers.
(a) The Board shall certify to the Governor, on or
before November 15 of each year, the amount of the required
State contribution to the System for the following fiscal
year. The certification shall include a copy of the
actuarial recommendations upon which it is based.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
(b) Beginning in State fiscal year 1996, on or as soon
as possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). These vouchers shall be paid by the State Comptroller
and Treasurer by warrants drawn on the funds appropriated to
the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under
Section 8.12 of the State Finance Act and Section 1 of the
State Pension Funds Continuing Appropriation Act) is less
than the amount lawfully vouchered under this Section, the
difference shall be paid from the General Revenue Fund under
the continuing appropriation authority provided in Section
1.1 of the State Pension Funds Continuing Appropriation Act.
(Source: P.A. 88-593, eff. 8-22-94.)
Section 99. Effective date. This Act takes effect upon
becoming law.