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1 | AN ACT concerning education. | ||||||
2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly: | ||||||
4 | Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 16-121, 16-127, 16-158, and 16-203 as | ||||||
6 | follows: | ||||||
7 | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121) | ||||||
8 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
9 | which has been held unconstitutional) | ||||||
10 | Sec. 16-121. Salary. "Salary": The actual compensation | ||||||
11 | received by a teacher during any school year and recognized by | ||||||
12 | the system in accordance with rules of the board. "Salary" | ||||||
13 | includes any stipend paid under Section 9.44 of the Board of | ||||||
14 | Higher Education Act to an eligible cooperating teacher. | ||||||
15 | For purposes of this Section, "school year" includes the | ||||||
16 | regular school term plus any additional period for which a | ||||||
17 | teacher is compensated and such compensation is recognized by | ||||||
18 | the rules of the board. | ||||||
19 | (Source: P.A. 84-1028.) | ||||||
20 | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127) | ||||||
21 | Sec. 16-127. Computation of creditable service. | ||||||
22 | (a) Each member shall receive regular credit for all |
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1 | service as a teacher from the date membership begins, for | ||||||
2 | which satisfactory evidence is supplied and all contributions | ||||||
3 | have been paid. | ||||||
4 | (b) The following periods of service shall earn optional | ||||||
5 | credit and each member shall receive credit for all such | ||||||
6 | service for which satisfactory evidence is supplied and all | ||||||
7 | contributions have been paid as of the date specified: | ||||||
8 | (1) Prior service as a teacher. | ||||||
9 | (2) Service in a capacity essentially similar or | ||||||
10 | equivalent to that of a teacher, in the public common | ||||||
11 | schools in school districts in this State not included | ||||||
12 | within the provisions of this System, or of any other | ||||||
13 | State, territory, dependency or possession of the United | ||||||
14 | States, or in schools operated by or under the auspices of | ||||||
15 | the United States, or under the auspices of any agency or | ||||||
16 | department of any other State, and service during any | ||||||
17 | period of professional speech correction or special | ||||||
18 | education experience for a public agency within this State | ||||||
19 | or any other State, territory, dependency or possession of | ||||||
20 | the United States, and service prior to February 1, 1951 | ||||||
21 | as a recreation worker for the Illinois Department of | ||||||
22 | Public Safety, for a period not exceeding the lesser of | ||||||
23 | 2/5 of the total creditable service of the member or 10 | ||||||
24 | years. The maximum service of 10 years which is allowable | ||||||
25 | under this paragraph shall be reduced by the service | ||||||
26 | credit which is validated by other retirement systems |
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1 | under paragraph (i) of Section 15-113 and paragraph 1 of | ||||||
2 | Section 17-133. Credit granted under this paragraph may | ||||||
3 | not be used in determination of a retirement annuity or | ||||||
4 | disability benefits unless the member has at least 5 years | ||||||
5 | of creditable service earned subsequent to this employment | ||||||
6 | with one or more of the following systems: Teachers' | ||||||
7 | Retirement System of the State of Illinois, State | ||||||
8 | Universities Retirement System, and the Public School | ||||||
9 | Teachers' Pension and Retirement Fund of Chicago. Whenever | ||||||
10 | such service credit exceeds the maximum allowed for all | ||||||
11 | purposes of this Article, the first service rendered in | ||||||
12 | point of time shall be considered. The changes to this | ||||||
13 | paragraph subdivision (b) (2) made by Public Act 86-272 | ||||||
14 | shall apply not only to persons who on or after its | ||||||
15 | effective date (August 23, 1989) are in service as a | ||||||
16 | teacher under the System, but also to persons whose status | ||||||
17 | as such a teacher terminated prior to such effective date, | ||||||
18 | whether or not such person is an annuitant on that date. | ||||||
19 | (3) Any periods immediately following teaching | ||||||
20 | service, under this System or under Article 17, (or | ||||||
21 | immediately following service prior to February 1, 1951 as | ||||||
22 | a recreation worker for the Illinois Department of Public | ||||||
23 | Safety) spent in active service with the military forces | ||||||
24 | of the United States; periods spent in educational | ||||||
25 | programs that prepare for return to teaching sponsored by | ||||||
26 | the federal government following such active military |
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1 | service; if a teacher returns to teaching service within | ||||||
2 | one calendar year after discharge or after the completion | ||||||
3 | of the educational program, a further period, not | ||||||
4 | exceeding one calendar year, between time spent in | ||||||
5 | military service or in such educational programs and the | ||||||
6 | return to employment as a teacher under this System; and a | ||||||
7 | period of up to 2 years of active military service not | ||||||
8 | immediately following employment as a teacher. | ||||||
9 | The changes to this Section and Section 16-128 | ||||||
10 | relating to military service made by Public Act P.A. | ||||||
11 | 87-794 shall apply not only to persons who on or after its | ||||||
12 | effective date are in service as a teacher under the | ||||||
13 | System, but also to persons whose status as a teacher | ||||||
14 | terminated prior to that date, whether or not the person | ||||||
15 | is an annuitant on that date. In the case of an annuitant | ||||||
16 | who applies for credit allowable under this Section for a | ||||||
17 | period of military service that did not immediately follow | ||||||
18 | employment, and who has made the required contributions | ||||||
19 | for such credit, the annuity shall be recalculated to | ||||||
20 | include the additional service credit, with the increase | ||||||
21 | taking effect on the date the System received written | ||||||
22 | notification of the annuitant's intent to purchase the | ||||||
23 | credit, if payment of all the required contributions is | ||||||
24 | made within 60 days of such notice, or else on the first | ||||||
25 | annuity payment date following the date of payment of the | ||||||
26 | required contributions. In calculating the automatic |
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1 | annual increase for an annuity that has been recalculated | ||||||
2 | under this Section, the increase attributable to the | ||||||
3 | additional service allowable under Public Act P.A. 87-794 | ||||||
4 | shall be included in the calculation of automatic annual | ||||||
5 | increases accruing after the effective date of the | ||||||
6 | recalculation. | ||||||
7 | Credit for military service shall be determined as | ||||||
8 | follows: if entry occurs during the months of July, | ||||||
9 | August, or September and the member was a teacher at the | ||||||
10 | end of the immediately preceding school term, credit shall | ||||||
11 | be granted from July 1 of the year in which he or she | ||||||
12 | entered service; if entry occurs during the school term | ||||||
13 | and the teacher was in teaching service at the beginning | ||||||
14 | of the school term, credit shall be granted from July 1 of | ||||||
15 | such year. In all other cases where credit for military | ||||||
16 | service is allowed, credit shall be granted from the date | ||||||
17 | of entry into the service. | ||||||
18 | The total period of military service for which credit | ||||||
19 | is granted shall not exceed 5 years for any member unless | ||||||
20 | the service: (A) is validated before July 1, 1964, and (B) | ||||||
21 | does not extend beyond July 1, 1963. Credit for military | ||||||
22 | service shall be granted under this Section only if not | ||||||
23 | more than 5 years of the military service for which credit | ||||||
24 | is granted under this Section is used by the member to | ||||||
25 | qualify for a military retirement allotment from any | ||||||
26 | branch of the armed forces of the United States. The |
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1 | changes to this paragraph subdivision (b) (3) made by | ||||||
2 | Public Act 86-272 shall apply not only to persons who on or | ||||||
3 | after its effective date (August 23, 1989) are in service | ||||||
4 | as a teacher under the System, but also to persons whose | ||||||
5 | status as such a teacher terminated prior to such | ||||||
6 | effective date, whether or not such person is an annuitant | ||||||
7 | on that date. | ||||||
8 | (4) Any periods served as a member of the General | ||||||
9 | Assembly. | ||||||
10 | (5)(i) Any periods for which a teacher, as defined in | ||||||
11 | Section 16-106, is granted a leave of absence, provided he | ||||||
12 | or she returns to teaching service creditable under this | ||||||
13 | System or the State Universities Retirement System | ||||||
14 | following the leave; (ii) periods during which a teacher | ||||||
15 | is involuntarily laid off from teaching, provided he or | ||||||
16 | she returns to teaching following the lay-off; (iii) | ||||||
17 | periods prior to July 1, 1983 during which a teacher | ||||||
18 | ceased covered employment due to pregnancy, provided that | ||||||
19 | the teacher returned to teaching service creditable under | ||||||
20 | this System or the State Universities Retirement System | ||||||
21 | following the pregnancy and submits evidence satisfactory | ||||||
22 | to the Board documenting that the employment ceased due to | ||||||
23 | pregnancy; and (iv) periods prior to July 1, 1983 during | ||||||
24 | which a teacher ceased covered employment for the purpose | ||||||
25 | of adopting an infant under 3 years of age or caring for a | ||||||
26 | newly adopted infant under 3 years of age, provided that |
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1 | the teacher returned to teaching service creditable under | ||||||
2 | this System or the State Universities Retirement System | ||||||
3 | following the adoption and submits evidence satisfactory | ||||||
4 | to the Board documenting that the employment ceased for | ||||||
5 | the purpose of adopting an infant under 3 years of age or | ||||||
6 | caring for a newly adopted infant under 3 years of age. | ||||||
7 | However, total credit under this paragraph (5) may not | ||||||
8 | exceed 3 years. | ||||||
9 | Any qualified member or annuitant may apply for credit | ||||||
10 | under item (iii) or (iv) of this paragraph (5) without | ||||||
11 | regard to whether service was terminated before June 27, | ||||||
12 | 1997 ( the effective date of Public Act 90-32) this | ||||||
13 | amendatory Act of 1997 . In the case of an annuitant who | ||||||
14 | establishes credit under item (iii) or (iv), the annuity | ||||||
15 | shall be recalculated to include the additional service | ||||||
16 | credit. The increase in annuity shall take effect on the | ||||||
17 | date the System receives written notification of the | ||||||
18 | annuitant's intent to purchase the credit, if the required | ||||||
19 | evidence is submitted and the required contribution paid | ||||||
20 | within 60 days of that notification, otherwise on the | ||||||
21 | first annuity payment date following the System's receipt | ||||||
22 | of the required evidence and contribution. The increase in | ||||||
23 | an annuity recalculated under this provision shall be | ||||||
24 | included in the calculation of automatic annual increases | ||||||
25 | in the annuity accruing after the effective date of the | ||||||
26 | recalculation. |
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1 | Optional credit may be purchased under this paragraph | ||||||
2 | subsection (b) (5) for periods during which a teacher has | ||||||
3 | been granted a leave of absence pursuant to Section 24-13 | ||||||
4 | of the School Code. A teacher whose service under this | ||||||
5 | Article terminated prior to the effective date of Public | ||||||
6 | Act P.A. 86-1488 shall be eligible to purchase such | ||||||
7 | optional credit. If a teacher who purchases this optional | ||||||
8 | credit is already receiving a retirement annuity under | ||||||
9 | this Article, the annuity shall be recalculated as if the | ||||||
10 | annuitant had applied for the leave of absence credit at | ||||||
11 | the time of retirement. The difference between the | ||||||
12 | entitled annuity and the actual annuity shall be credited | ||||||
13 | to the purchase of the optional credit. The remainder of | ||||||
14 | the purchase cost of the optional credit shall be paid on | ||||||
15 | or before April 1, 1992. | ||||||
16 | The change in this paragraph made by Public Act 86-273 | ||||||
17 | shall be applicable to teachers who retire after June 1, | ||||||
18 | 1989, as well as to teachers who are in service on that | ||||||
19 | date. | ||||||
20 | (6) Any days of unused and uncompensated accumulated | ||||||
21 | sick leave earned by a teacher. The service credit granted | ||||||
22 | under this paragraph shall be the ratio of the number of | ||||||
23 | unused and uncompensated accumulated sick leave days to | ||||||
24 | 170 days, subject to a maximum of 2 years of service | ||||||
25 | credit. Prior to the member's retirement, each former | ||||||
26 | employer shall certify to the System the number of unused |
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1 | and uncompensated accumulated sick leave days credited to | ||||||
2 | the member at the time of termination of service. The | ||||||
3 | period of unused sick leave shall not be considered in | ||||||
4 | determining the effective date of retirement. A member is | ||||||
5 | not required to make contributions in order to obtain | ||||||
6 | service credit for unused sick leave. | ||||||
7 | Credit for sick leave shall, at retirement, be granted | ||||||
8 | by the System for any retiring regional or assistant | ||||||
9 | regional superintendent of schools at the rate of 6 days | ||||||
10 | per year of creditable service or portion thereof | ||||||
11 | established while serving as such superintendent or | ||||||
12 | assistant superintendent. | ||||||
13 | (7) Periods prior to February 1, 1987 served as an | ||||||
14 | employee of the Illinois Mathematics and Science Academy | ||||||
15 | for which credit has not been terminated under Section | ||||||
16 | 15-113.9 of this Code. | ||||||
17 | (8) Service as a substitute teacher for work performed | ||||||
18 | prior to July 1, 1990. | ||||||
19 | (9) Service as a part-time teacher for work performed | ||||||
20 | prior to July 1, 1990. | ||||||
21 | (10) Up to 2 years of employment with Southern | ||||||
22 | Illinois University - Carbondale from September 1, 1959 to | ||||||
23 | August 31, 1961, or with Governors State University from | ||||||
24 | September 1, 1972 to August 31, 1974, for which the | ||||||
25 | teacher has no credit under Article 15. To receive credit | ||||||
26 | under this item (10), a teacher must apply in writing to |
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1 | the Board and pay the required contributions before May 1, | ||||||
2 | 1993 and have at least 12 years of service credit under | ||||||
3 | this Article. | ||||||
4 | (11) Periods of service as a student teacher as | ||||||
5 | described in Section 24-8.5 of the School Code for which | ||||||
6 | the student teacher received a salary. | ||||||
7 | (12) Periods of service as a student teacher as | ||||||
8 | described under Section 9.44 of the Board of Higher | ||||||
9 | Education Act. | ||||||
10 | (b-1) A member may establish optional credit for up to 2 | ||||||
11 | years of service as a teacher or administrator employed by a | ||||||
12 | private school recognized by the Illinois State Board of | ||||||
13 | Education, provided that the teacher (i) was certified under | ||||||
14 | the law governing the certification of teachers at the time | ||||||
15 | the service was rendered, (ii) applies in writing on or before | ||||||
16 | June 30, 2028, (iii) supplies satisfactory evidence of the | ||||||
17 | employment, (iv) completes at least 10 years of contributing | ||||||
18 | service as a teacher as defined in Section 16-106, and (v) pays | ||||||
19 | the contribution required in subsection (d-5) of Section | ||||||
20 | 16-128. The member may apply for credit under this subsection | ||||||
21 | and pay the required contribution before completing the 10 | ||||||
22 | years of contributing service required under item (iv), but | ||||||
23 | the credit may not be used until the item (iv) contributing | ||||||
24 | service requirement has been met. | ||||||
25 | (c) The service credits specified in this Section shall be | ||||||
26 | granted only if: (1) such service credits are not used for |
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1 | credit in any other statutory tax-supported public employee | ||||||
2 | retirement system other than the federal Social Security | ||||||
3 | program; and (2) the member makes the required contributions | ||||||
4 | as specified in Section 16-128. Except as provided in | ||||||
5 | subsection (b-1) of this Section, the service credit shall be | ||||||
6 | effective as of the date the required contributions are | ||||||
7 | completed. | ||||||
8 | Any service credits granted under this Section shall | ||||||
9 | terminate upon cessation of membership for any cause. | ||||||
10 | Credit may not be granted under this Section covering any | ||||||
11 | period for which an age retirement or disability retirement | ||||||
12 | allowance has been paid. | ||||||
13 | Credit may not be granted under this Section for service | ||||||
14 | as an employee of an entity that provides substitute teaching | ||||||
15 | services under Section 2-3.173 of the School Code and is not a | ||||||
16 | school district. | ||||||
17 | (Source: P.A. 102-525, eff. 8-20-21; 103-17, eff. 6-9-23; | ||||||
18 | 103-525, eff. 8-11-23; revised 9-5-23.) | ||||||
19 | (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158) | ||||||
20 | Sec. 16-158. Contributions by State and other employing | ||||||
21 | units. | ||||||
22 | (a) The State shall make contributions to the System by | ||||||
23 | means of appropriations from the Common School Fund and other | ||||||
24 | State funds of amounts which, together with other employer | ||||||
25 | contributions, employee contributions, investment income, and |
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1 | other income, will be sufficient to meet the cost of | ||||||
2 | maintaining and administering the System on a 90% funded basis | ||||||
3 | in accordance with actuarial recommendations. | ||||||
4 | The Board shall determine the amount of State | ||||||
5 | contributions required for each fiscal year on the basis of | ||||||
6 | the actuarial tables and other assumptions adopted by the | ||||||
7 | Board and the recommendations of the actuary, using the | ||||||
8 | formula in subsection (b-3). | ||||||
9 | (a-1) Annually, on or before November 15 until November | ||||||
10 | 15, 2011, the Board shall certify to the Governor the amount of | ||||||
11 | the required State contribution for the coming fiscal year. | ||||||
12 | The certification under this subsection (a-1) shall include a | ||||||
13 | copy of the actuarial recommendations upon which it is based | ||||||
14 | and shall specifically identify the System's projected State | ||||||
15 | normal cost for that fiscal year. | ||||||
16 | On or before May 1, 2004, the Board shall recalculate and | ||||||
17 | recertify to the Governor the amount of the required State | ||||||
18 | contribution to the System for State fiscal year 2005, taking | ||||||
19 | into account the amounts appropriated to and received by the | ||||||
20 | System under subsection (d) of Section 7.2 of the General | ||||||
21 | Obligation Bond Act. | ||||||
22 | On or before July 1, 2005, the Board shall recalculate and | ||||||
23 | recertify to the Governor the amount of the required State | ||||||
24 | contribution to the System for State fiscal year 2006, taking | ||||||
25 | into account the changes in required State contributions made | ||||||
26 | by Public Act 94-4. |
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1 | On or before April 1, 2011, the Board shall recalculate | ||||||
2 | and recertify to the Governor the amount of the required State | ||||||
3 | contribution to the System for State fiscal year 2011, | ||||||
4 | applying the changes made by Public Act 96-889 to the System's | ||||||
5 | assets and liabilities as of June 30, 2009 as though Public Act | ||||||
6 | 96-889 was approved on that date. | ||||||
7 | (a-5) On or before November 1 of each year, beginning | ||||||
8 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
9 | the Governor, and the General Assembly a proposed | ||||||
10 | certification of the amount of the required State contribution | ||||||
11 | to the System for the next fiscal year, along with all of the | ||||||
12 | actuarial assumptions, calculations, and data upon which that | ||||||
13 | proposed certification is based. On or before January 1 of | ||||||
14 | each year, beginning January 1, 2013, the State Actuary shall | ||||||
15 | issue a preliminary report concerning the proposed | ||||||
16 | certification and identifying, if necessary, recommended | ||||||
17 | changes in actuarial assumptions that the Board must consider | ||||||
18 | before finalizing its certification of the required State | ||||||
19 | contributions. On or before January 15, 2013 and each January | ||||||
20 | 15 thereafter, the Board shall certify to the Governor and the | ||||||
21 | General Assembly the amount of the required State contribution | ||||||
22 | for the next fiscal year. The Board's certification must note | ||||||
23 | any deviations from the State Actuary's recommended changes, | ||||||
24 | the reason or reasons for not following the State Actuary's | ||||||
25 | recommended changes, and the fiscal impact of not following | ||||||
26 | the State Actuary's recommended changes on the required State |
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1 | contribution. | ||||||
2 | (a-10) By November 1, 2017, the Board shall recalculate | ||||||
3 | and recertify to the State Actuary, the Governor, and the | ||||||
4 | General Assembly the amount of the State contribution to the | ||||||
5 | System for State fiscal year 2018, taking into account the | ||||||
6 | changes in required State contributions made by Public Act | ||||||
7 | 100-23. The State Actuary shall review the assumptions and | ||||||
8 | valuations underlying the Board's revised certification and | ||||||
9 | issue a preliminary report concerning the proposed | ||||||
10 | recertification and identifying, if necessary, recommended | ||||||
11 | changes in actuarial assumptions that the Board must consider | ||||||
12 | before finalizing its certification of the required State | ||||||
13 | contributions. The Board's final certification must note any | ||||||
14 | deviations from the State Actuary's recommended changes, the | ||||||
15 | reason or reasons for not following the State Actuary's | ||||||
16 | recommended changes, and the fiscal impact of not following | ||||||
17 | the State Actuary's recommended changes on the required State | ||||||
18 | contribution. | ||||||
19 | (a-15) On or after June 15, 2019, but no later than June | ||||||
20 | 30, 2019, the Board shall recalculate and recertify to the | ||||||
21 | Governor and the General Assembly the amount of the State | ||||||
22 | contribution to the System for State fiscal year 2019, taking | ||||||
23 | into account the changes in required State contributions made | ||||||
24 | by Public Act 100-587. The recalculation shall be made using | ||||||
25 | assumptions adopted by the Board for the original fiscal year | ||||||
26 | 2019 certification. The monthly voucher for the 12th month of |
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1 | fiscal year 2019 shall be paid by the Comptroller after the | ||||||
2 | recertification required pursuant to this subsection is | ||||||
3 | submitted to the Governor, Comptroller, and General Assembly. | ||||||
4 | The recertification submitted to the General Assembly shall be | ||||||
5 | filed with the Clerk of the House of Representatives and the | ||||||
6 | Secretary of the Senate in electronic form only, in the manner | ||||||
7 | that the Clerk and the Secretary shall direct. | ||||||
8 | (b) Through State fiscal year 1995, the State | ||||||
9 | contributions shall be paid to the System in accordance with | ||||||
10 | Section 18-7 of the School Code. | ||||||
11 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
12 | of each month, or as soon thereafter as may be practicable, the | ||||||
13 | Board shall submit vouchers for payment of State contributions | ||||||
14 | to the System, in a total monthly amount of one-twelfth of the | ||||||
15 | required annual State contribution certified under subsection | ||||||
16 | (a-1). From March 5, 2004 (the effective date of Public Act | ||||||
17 | 93-665) through June 30, 2004, the Board shall not submit | ||||||
18 | vouchers for the remainder of fiscal year 2004 in excess of the | ||||||
19 | fiscal year 2004 certified contribution amount determined | ||||||
20 | under this Section after taking into consideration the | ||||||
21 | transfer to the System under subsection (a) of Section 6z-61 | ||||||
22 | of the State Finance Act. These vouchers shall be paid by the | ||||||
23 | State Comptroller and Treasurer by warrants drawn on the funds | ||||||
24 | appropriated to the System for that fiscal year. | ||||||
25 | If in any month the amount remaining unexpended from all | ||||||
26 | other appropriations to the System for the applicable fiscal |
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1 | year (including the appropriations to the System under Section | ||||||
2 | 8.12 of the State Finance Act and Section 1 of the State | ||||||
3 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
4 | amount lawfully vouchered under this subsection, the | ||||||
5 | difference shall be paid from the Common School Fund under the | ||||||
6 | continuing appropriation authority provided in Section 1.1 of | ||||||
7 | the State Pension Funds Continuing Appropriation Act. | ||||||
8 | (b-2) Allocations from the Common School Fund apportioned | ||||||
9 | to school districts not coming under this System shall not be | ||||||
10 | diminished or affected by the provisions of this Article. | ||||||
11 | (b-3) For State fiscal years 2012 through 2045, the | ||||||
12 | minimum contribution to the System to be made by the State for | ||||||
13 | each fiscal year shall be an amount determined by the System to | ||||||
14 | be sufficient to bring the total assets of the System up to 90% | ||||||
15 | of 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 each of State fiscal years 2018, 2019, and 2020, the | ||||||
22 | State shall make an additional contribution to the System | ||||||
23 | equal to 2% of the total payroll of each employee who is deemed | ||||||
24 | to have elected the benefits under Section 1-161 or who has | ||||||
25 | made the election under subsection (c) of Section 1-161. | ||||||
26 | A change in an actuarial or investment assumption that |
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1 | increases or decreases the required State contribution and | ||||||
2 | first applies in State fiscal year 2018 or thereafter shall be | ||||||
3 | implemented in equal annual amounts over a 5-year period | ||||||
4 | beginning in the State fiscal year in which the actuarial | ||||||
5 | change first applies to the required State contribution. | ||||||
6 | A change in an actuarial or investment assumption that | ||||||
7 | increases or decreases the required State contribution and | ||||||
8 | first applied to the State contribution in fiscal year 2014, | ||||||
9 | 2015, 2016, or 2017 shall be implemented: | ||||||
10 | (i) as already applied in State fiscal years before | ||||||
11 | 2018; and | ||||||
12 | (ii) in the portion of the 5-year period beginning in | ||||||
13 | the State fiscal year in which the actuarial change first | ||||||
14 | applied that occurs in State fiscal year 2018 or | ||||||
15 | thereafter, by calculating the change in equal annual | ||||||
16 | amounts over that 5-year period and then implementing it | ||||||
17 | at the resulting annual rate in each of the remaining | ||||||
18 | fiscal years in that 5-year period. | ||||||
19 | For State fiscal years 1996 through 2005, the State | ||||||
20 | contribution to the System, as a percentage of the applicable | ||||||
21 | employee payroll, shall be increased in equal annual | ||||||
22 | increments so that by State fiscal year 2011, the State is | ||||||
23 | contributing at the rate required under this Section; except | ||||||
24 | that in the following specified State fiscal years, the State | ||||||
25 | contribution to the System shall not be less than the | ||||||
26 | following indicated percentages of the applicable employee |
| |||||||
| |||||||
1 | payroll, even if the indicated percentage will produce a State | ||||||
2 | contribution in excess of the amount otherwise required under | ||||||
3 | this subsection and subsection (a), and notwithstanding any | ||||||
4 | contrary certification made under subsection (a-1) before May | ||||||
5 | 27, 1998 (the effective date of Public Act 90-582): 10.02% in | ||||||
6 | FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY | ||||||
7 | 2002; 12.86% in FY 2003; and 13.56% in FY 2004. | ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State contribution for State fiscal year 2006 | ||||||
10 | is $534,627,700. | ||||||
11 | Notwithstanding any other provision of this Article, the | ||||||
12 | total required State contribution for State fiscal year 2007 | ||||||
13 | is $738,014,500. | ||||||
14 | For each of State fiscal years 2008 through 2009, the | ||||||
15 | State contribution to the System, as a percentage of the | ||||||
16 | applicable employee payroll, shall be increased in equal | ||||||
17 | annual increments from the required State contribution for | ||||||
18 | State fiscal year 2007, so that by State fiscal year 2011, the | ||||||
19 | State is contributing at the rate otherwise required under | ||||||
20 | this Section. | ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State contribution for State fiscal year 2010 | ||||||
23 | is $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
24 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
25 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
26 | expenses determined by the System's share of total bond |
| |||||||
| |||||||
1 | proceeds, (ii) any amounts received from the Common School | ||||||
2 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
3 | proceeds due to the issuance of discounted bonds, if | ||||||
4 | applicable. | ||||||
5 | Notwithstanding any other provision of this Article, the | ||||||
6 | total required State contribution for State fiscal year 2011 | ||||||
7 | is the amount recertified by the System on or before April 1, | ||||||
8 | 2011 pursuant to subsection (a-1) of this Section and shall be | ||||||
9 | made from the proceeds of bonds sold in fiscal year 2011 | ||||||
10 | pursuant to Section 7.2 of the General Obligation Bond Act, | ||||||
11 | less (i) the pro rata share of bond sale expenses determined by | ||||||
12 | the System's share of total bond proceeds, (ii) any amounts | ||||||
13 | received from the Common School Fund in fiscal year 2011, and | ||||||
14 | (iii) any reduction in bond proceeds due to the issuance of | ||||||
15 | discounted bonds, if applicable. This amount shall include, in | ||||||
16 | addition to the amount certified by the System, an amount | ||||||
17 | necessary to meet employer contributions required by the State | ||||||
18 | as an employer under paragraph (e) of this Section, which may | ||||||
19 | also be used by the System for contributions required by | ||||||
20 | paragraph (a) of Section 16-127. | ||||||
21 | Beginning in State fiscal year 2046, the minimum State | ||||||
22 | contribution for each fiscal year shall be the amount needed | ||||||
23 | to maintain the total assets of the System at 90% of the total | ||||||
24 | actuarial liabilities of the System. | ||||||
25 | Amounts received by the System pursuant to Section 25 of | ||||||
26 | the Budget Stabilization Act or Section 8.12 of the State |
| |||||||
| |||||||
1 | Finance Act in any fiscal year do not reduce and do not | ||||||
2 | constitute payment of any portion of the minimum State | ||||||
3 | contribution required under this Article in that fiscal year. | ||||||
4 | Such amounts shall not reduce, and shall not be included in the | ||||||
5 | calculation of, the required State contributions under this | ||||||
6 | Article in any future year until the System has reached a | ||||||
7 | funding ratio of at least 90%. A reference in this Article to | ||||||
8 | the "required State contribution" or any substantially similar | ||||||
9 | term does not include or apply to any amounts payable to the | ||||||
10 | System under Section 25 of the Budget Stabilization Act. | ||||||
11 | Notwithstanding any other provision of this Section, the | ||||||
12 | required State contribution for State fiscal year 2005 and for | ||||||
13 | fiscal year 2008 and each fiscal year thereafter, as | ||||||
14 | calculated under this Section and certified under subsection | ||||||
15 | (a-1), shall not exceed an amount equal to (i) the amount of | ||||||
16 | the required State contribution that would have been | ||||||
17 | calculated under this Section for that fiscal year if the | ||||||
18 | System had not received any payments under subsection (d) of | ||||||
19 | Section 7.2 of the General Obligation Bond Act, minus (ii) the | ||||||
20 | portion of the State's total debt service payments for that | ||||||
21 | fiscal year on the bonds issued in fiscal year 2003 for the | ||||||
22 | purposes of that Section 7.2, as determined and certified by | ||||||
23 | the Comptroller, that is the same as the System's portion of | ||||||
24 | the total moneys distributed under subsection (d) of Section | ||||||
25 | 7.2 of the General Obligation Bond Act. In determining this | ||||||
26 | maximum for State fiscal years 2008 through 2010, however, the |
| |||||||
| |||||||
1 | amount referred to in item (i) shall be increased, as a | ||||||
2 | percentage of the applicable employee payroll, in equal | ||||||
3 | increments calculated from the sum of the required State | ||||||
4 | contribution for State fiscal year 2007 plus the applicable | ||||||
5 | portion of the State's total debt service payments for fiscal | ||||||
6 | year 2007 on the bonds issued in fiscal year 2003 for the | ||||||
7 | purposes of Section 7.2 of the General Obligation Bond Act, so | ||||||
8 | that, by State fiscal year 2011, the State is contributing at | ||||||
9 | the rate otherwise required under this Section. | ||||||
10 | (b-4) Beginning in fiscal year 2018, each employer under | ||||||
11 | this Article shall pay to the System a required contribution | ||||||
12 | determined as a percentage of projected payroll and sufficient | ||||||
13 | to produce an annual amount equal to: | ||||||
14 | (i) for each of fiscal years 2018, 2019, and 2020, the | ||||||
15 | defined benefit normal cost of the defined benefit plan, | ||||||
16 | less the employee contribution, for each employee of that | ||||||
17 | employer who has elected or who is deemed to have elected | ||||||
18 | the benefits under Section 1-161 or who has made the | ||||||
19 | election under subsection (b) of Section 1-161; for fiscal | ||||||
20 | year 2021 and each fiscal year thereafter, the defined | ||||||
21 | benefit normal cost of the defined benefit plan, less the | ||||||
22 | employee contribution, plus 2%, for each employee of that | ||||||
23 | employer who has elected or who is deemed to have elected | ||||||
24 | the benefits under Section 1-161 or who has made the | ||||||
25 | election under subsection (b) of Section 1-161; plus | ||||||
26 | (ii) the amount required for that fiscal year to |
| |||||||
| |||||||
1 | amortize any unfunded actuarial accrued liability | ||||||
2 | associated with the present value of liabilities | ||||||
3 | attributable to the employer's account under Section | ||||||
4 | 16-158.3, determined as a level percentage of payroll over | ||||||
5 | a 30-year rolling amortization period. | ||||||
6 | In determining contributions required under item (i) of | ||||||
7 | this subsection, the System shall determine an aggregate rate | ||||||
8 | for all employers, expressed as a percentage of projected | ||||||
9 | payroll. | ||||||
10 | In determining the contributions required under item (ii) | ||||||
11 | of this subsection, the amount shall be computed by the System | ||||||
12 | on the basis of the actuarial assumptions and tables used in | ||||||
13 | the most recent actuarial valuation of the System that is | ||||||
14 | available at the time of the computation. | ||||||
15 | The contributions required under this subsection (b-4) | ||||||
16 | shall be paid by an employer concurrently with that employer's | ||||||
17 | payroll payment period. The State, as the actual employer of | ||||||
18 | an employee, shall make the required contributions under this | ||||||
19 | subsection. | ||||||
20 | (c) Payment of the required State contributions and of all | ||||||
21 | pensions, retirement annuities, death benefits, refunds, and | ||||||
22 | other benefits granted under or assumed by this System, and | ||||||
23 | all expenses in connection with the administration and | ||||||
24 | operation thereof, are obligations of the State. | ||||||
25 | If members are paid from special trust or federal funds | ||||||
26 | which are administered by the employing unit, whether school |
| |||||||
| |||||||
1 | district or other unit, the employing unit shall pay to the | ||||||
2 | System from such funds the full accruing retirement costs | ||||||
3 | based upon that service, which, beginning July 1, 2017, shall | ||||||
4 | be at a rate, expressed as a percentage of salary, equal to the | ||||||
5 | total employer's normal cost, expressed as a percentage of | ||||||
6 | payroll, as determined by the System. Employer contributions, | ||||||
7 | based on salary paid to members from federal funds, may be | ||||||
8 | forwarded by the distributing agency of the State of Illinois | ||||||
9 | to the System prior to allocation, in an amount determined in | ||||||
10 | accordance with guidelines established by such agency and the | ||||||
11 | System. Any contribution for fiscal year 2015 collected as a | ||||||
12 | result of the change made by Public Act 98-674 shall be | ||||||
13 | considered a State contribution under subsection (b-3) of this | ||||||
14 | Section. | ||||||
15 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
16 | defined in paragraph (8) of Section 16-106 shall pay the | ||||||
17 | employer's normal cost of benefits based upon the teacher's | ||||||
18 | service, in addition to employee contributions, as determined | ||||||
19 | by the System. Such employer contributions shall be forwarded | ||||||
20 | monthly in accordance with guidelines established by the | ||||||
21 | System. | ||||||
22 | However, with respect to benefits granted under Section | ||||||
23 | 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8) | ||||||
24 | of Section 16-106, the employer's contribution shall be 12% | ||||||
25 | (rather than 20%) of the member's highest annual salary rate | ||||||
26 | for each year of creditable service granted, and the employer |
| |||||||
| |||||||
1 | shall also pay the required employee contribution on behalf of | ||||||
2 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
3 | 16-133.5, a teacher as defined in paragraph (8) of Section | ||||||
4 | 16-106 who is serving in that capacity while on leave of | ||||||
5 | absence from another employer under this Article shall not be | ||||||
6 | considered an employee of the employer from which the teacher | ||||||
7 | is on leave. | ||||||
8 | (e) Beginning July 1, 1998, every employer of a teacher | ||||||
9 | shall pay to the System an employer contribution computed as | ||||||
10 | follows: | ||||||
11 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
12 | employer contribution shall be equal to 0.3% of each | ||||||
13 | teacher's salary. | ||||||
14 | (2) Beginning July 1, 1999 and thereafter, the | ||||||
15 | employer contribution shall be equal to 0.58% of each | ||||||
16 | teacher's salary. | ||||||
17 | The school district or other employing unit may pay these | ||||||
18 | employer contributions out of any source of funding available | ||||||
19 | for that purpose and shall forward the contributions to the | ||||||
20 | System on the schedule established for the payment of member | ||||||
21 | contributions. | ||||||
22 | These employer contributions are intended to offset a | ||||||
23 | portion of the cost to the System of the increases in | ||||||
24 | retirement benefits resulting from Public Act 90-582. | ||||||
25 | Each employer of teachers is entitled to a credit against | ||||||
26 | the contributions required under this subsection (e) with |
| |||||||
| |||||||
1 | respect to salaries paid to teachers for the period January 1, | ||||||
2 | 2002 through June 30, 2003, equal to the amount paid by that | ||||||
3 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
4 | Employees Group Insurance Act of 1971 with respect to salaries | ||||||
5 | paid to teachers for that period. | ||||||
6 | The additional 1% employee contribution required under | ||||||
7 | Section 16-152 by Public Act 90-582 is the responsibility of | ||||||
8 | the teacher and not the teacher's employer, unless the | ||||||
9 | employer agrees, through collective bargaining or otherwise, | ||||||
10 | to make the contribution on behalf of the teacher. | ||||||
11 | If an employer is required by a contract in effect on May | ||||||
12 | 1, 1998 between the employer and an employee organization to | ||||||
13 | pay, on behalf of all its full-time employees covered by this | ||||||
14 | Article, all mandatory employee contributions required under | ||||||
15 | this Article, then the employer shall be excused from paying | ||||||
16 | the employer contribution required under this subsection (e) | ||||||
17 | for the balance of the term of that contract. The employer and | ||||||
18 | the employee organization shall jointly certify to the System | ||||||
19 | the existence of the contractual requirement, in such form as | ||||||
20 | the System may prescribe. This exclusion shall cease upon the | ||||||
21 | termination, extension, or renewal of the contract at any time | ||||||
22 | after May 1, 1998. | ||||||
23 | (f) If the amount of a teacher's salary for any school year | ||||||
24 | used to determine final average salary exceeds the member's | ||||||
25 | annual full-time salary rate with the same employer for the | ||||||
26 | previous school year by more than 6%, the teacher's employer |
| |||||||
| |||||||
1 | shall pay to the System, in addition to all other payments | ||||||
2 | required under this Section and in accordance with guidelines | ||||||
3 | established by the System, the present value of the increase | ||||||
4 | in benefits resulting from the portion of the increase in | ||||||
5 | salary that is in excess of 6%. This present value shall be | ||||||
6 | computed by the System on the basis of the actuarial | ||||||
7 | assumptions and tables used in the most recent actuarial | ||||||
8 | valuation of the System that is available at the time of the | ||||||
9 | computation. If a teacher's salary for the 2005-2006 school | ||||||
10 | year is used to determine final average salary under this | ||||||
11 | subsection (f), then the changes made to this subsection (f) | ||||||
12 | by Public Act 94-1057 shall apply in calculating whether the | ||||||
13 | increase in his or her salary is in excess of 6%. For the | ||||||
14 | purposes of this Section, change in employment under Section | ||||||
15 | 10-21.12 of the School Code on or after June 1, 2005 shall | ||||||
16 | constitute a change in employer. The System may require the | ||||||
17 | employer to provide any pertinent information or | ||||||
18 | documentation. The changes made to this subsection (f) by | ||||||
19 | Public Act 94-1111 apply without regard to whether the teacher | ||||||
20 | was in service on or after its effective date. | ||||||
21 | Whenever it determines that a payment is or may be | ||||||
22 | required under this subsection, the System shall calculate the | ||||||
23 | amount of the payment and bill the employer for that amount. | ||||||
24 | The bill shall specify the calculations used to determine the | ||||||
25 | amount due. If the employer disputes the amount of the bill, it | ||||||
26 | may, within 30 days after receipt of the bill, apply to the |
| |||||||
| |||||||
1 | System in writing for a recalculation. The application must | ||||||
2 | specify in detail the grounds of the dispute and, if the | ||||||
3 | employer asserts that the calculation is subject to subsection | ||||||
4 | (g), (g-5), (g-10), (g-15), (g-20), (g-25), or (h) of this | ||||||
5 | Section, must include an affidavit setting forth and attesting | ||||||
6 | to all facts within the employer's knowledge that are | ||||||
7 | pertinent to the applicability of that subsection. Upon | ||||||
8 | receiving a timely application for recalculation, the System | ||||||
9 | shall review the application and, if appropriate, recalculate | ||||||
10 | the amount due. | ||||||
11 | The employer contributions required under this subsection | ||||||
12 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
13 | receipt of the bill. If the employer contributions are not | ||||||
14 | paid within 90 days after receipt of the bill, then interest | ||||||
15 | will be charged at a rate equal to the System's annual | ||||||
16 | actuarially assumed rate of return on investment compounded | ||||||
17 | annually from the 91st day after receipt of the bill. Payments | ||||||
18 | must be concluded within 3 years after the employer's receipt | ||||||
19 | of the bill. | ||||||
20 | (f-1) (Blank). | ||||||
21 | (g) This subsection (g) applies only to payments made or | ||||||
22 | salary increases given on or after June 1, 2005 but before July | ||||||
23 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
24 | require the System to refund any payments received before July | ||||||
25 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
26 | When assessing payment for any amount due under subsection |
| |||||||
| |||||||
1 | (f), the System shall exclude salary increases paid to | ||||||
2 | teachers under contracts or collective bargaining agreements | ||||||
3 | entered into, amended, or renewed before June 1, 2005. | ||||||
4 | When assessing payment for any amount due under subsection | ||||||
5 | (f), the System shall exclude salary increases paid to a | ||||||
6 | teacher at a time when the teacher is 10 or more years from | ||||||
7 | retirement eligibility under Section 16-132 or 16-133.2. | ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (f), the System shall exclude salary increases resulting from | ||||||
10 | overload work, including summer school, when the school | ||||||
11 | district has certified to the System, and the System has | ||||||
12 | approved the certification, that (i) the overload work is for | ||||||
13 | the sole purpose of classroom instruction in excess of the | ||||||
14 | standard number of classes for a full-time teacher in a school | ||||||
15 | district during a school year and (ii) the salary increases | ||||||
16 | are equal to or less than the rate of pay for classroom | ||||||
17 | instruction computed on the teacher's current salary and work | ||||||
18 | schedule. | ||||||
19 | When assessing payment for any amount due under subsection | ||||||
20 | (f), the System shall exclude a salary increase resulting from | ||||||
21 | a promotion (i) for which the employee is required to hold a | ||||||
22 | certificate or supervisory endorsement issued by the State | ||||||
23 | Teacher Certification Board that is a different certification | ||||||
24 | or supervisory endorsement than is required for the teacher's | ||||||
25 | previous position and (ii) to a position that has existed and | ||||||
26 | been filled by a member for no less than one complete academic |
| |||||||
| |||||||
1 | year and the salary increase from the promotion is an increase | ||||||
2 | that results in an amount no greater than the lesser of the | ||||||
3 | average salary paid for other similar positions in the | ||||||
4 | district requiring the same certification or the amount | ||||||
5 | stipulated in the collective bargaining agreement for a | ||||||
6 | similar position requiring the same certification. | ||||||
7 | When assessing payment for any amount due under subsection | ||||||
8 | (f), the System shall exclude any payment to the teacher from | ||||||
9 | the State of Illinois or the State Board of Education over | ||||||
10 | which the employer does not have discretion, notwithstanding | ||||||
11 | that the payment is included in the computation of final | ||||||
12 | average salary. | ||||||
13 | (g-5) When assessing payment for any amount due under | ||||||
14 | subsection (f), the System shall exclude salary increases | ||||||
15 | resulting from overload or stipend work performed in a school | ||||||
16 | year subsequent to a school year in which the employer was | ||||||
17 | unable to offer or allow to be conducted overload or stipend | ||||||
18 | work due to an emergency declaration limiting such activities. | ||||||
19 | (g-10) When assessing payment for any amount due under | ||||||
20 | subsection (f), the System shall exclude salary increases | ||||||
21 | resulting from increased instructional time that exceeded the | ||||||
22 | instructional time required during the 2019-2020 school year. | ||||||
23 | (g-15) When assessing payment for any amount due under | ||||||
24 | subsection (f), the System shall exclude salary increases | ||||||
25 | resulting from teaching summer school on or after May 1, 2021 | ||||||
26 | and before September 15, 2022. |
| |||||||
| |||||||
1 | (g-20) When assessing payment for any amount due under | ||||||
2 | subsection (f), the System shall exclude salary increases | ||||||
3 | necessary to bring a school board in compliance with Public | ||||||
4 | Act 101-443 or this amendatory Act of the 103rd General | ||||||
5 | Assembly. | ||||||
6 | (g-25) When assessing payment for any amount due under | ||||||
7 | subsection (f), the System shall exclude any stipends paid to | ||||||
8 | an eligible cooperating teacher under Section 9.44 of the | ||||||
9 | Board of Higher Education Act. | ||||||
10 | (h) When assessing payment for any amount due under | ||||||
11 | subsection (f), the System shall exclude any salary increase | ||||||
12 | described in subsection (g) of this Section given on or after | ||||||
13 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
14 | collective bargaining agreement entered into, amended, or | ||||||
15 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
16 | Notwithstanding any other provision of this Section, any | ||||||
17 | payments made or salary increases given after June 30, 2014 | ||||||
18 | shall be used in assessing payment for any amount due under | ||||||
19 | subsection (f) of this Section. | ||||||
20 | (i) The System shall prepare a report and file copies of | ||||||
21 | the report with the Governor and the General Assembly by | ||||||
22 | January 1, 2007 that contains all of the following | ||||||
23 | information: | ||||||
24 | (1) The number of recalculations required by the | ||||||
25 | changes made to this Section by Public Act 94-1057 for | ||||||
26 | each employer. |
| |||||||
| |||||||
1 | (2) The dollar amount by which each employer's | ||||||
2 | contribution to the System was changed due to | ||||||
3 | recalculations required by Public Act 94-1057. | ||||||
4 | (3) The total amount the System received from each | ||||||
5 | employer as a result of the changes made to this Section by | ||||||
6 | Public Act 94-4. | ||||||
7 | (4) The increase in the required State contribution | ||||||
8 | resulting from the changes made to this Section by Public | ||||||
9 | Act 94-1057. | ||||||
10 | (i-5) For school years beginning on or after July 1, 2017, | ||||||
11 | if the amount of a participant's salary for any school year | ||||||
12 | exceeds the amount of the salary set for the Governor, the | ||||||
13 | participant's employer shall pay to the System, in addition to | ||||||
14 | all other payments required under this Section and in | ||||||
15 | accordance with guidelines established by the System, an | ||||||
16 | amount determined by the System to be equal to the employer | ||||||
17 | normal cost, as established by the System and expressed as a | ||||||
18 | total percentage of payroll, multiplied by the amount of | ||||||
19 | salary in excess of the amount of the salary set for the | ||||||
20 | Governor. This amount shall be computed by the System on the | ||||||
21 | basis of the actuarial assumptions and tables used in the most | ||||||
22 | recent actuarial valuation of the System that is available at | ||||||
23 | the time of the computation. The System may require the | ||||||
24 | employer to provide any pertinent information or | ||||||
25 | documentation. | ||||||
26 | Whenever it determines that a payment is or may be |
| |||||||
| |||||||
1 | required under this subsection, the System shall calculate the | ||||||
2 | amount of the payment and bill the employer for that amount. | ||||||
3 | The bill shall specify the calculations used to determine the | ||||||
4 | amount due. If the employer disputes the amount of the bill, it | ||||||
5 | may, within 30 days after receipt of the bill, apply to the | ||||||
6 | System in writing for a recalculation. The application must | ||||||
7 | specify in detail the grounds of the dispute. Upon receiving a | ||||||
8 | timely application for recalculation, the System shall review | ||||||
9 | the application and, if appropriate, recalculate the amount | ||||||
10 | due. | ||||||
11 | The employer contributions required under this subsection | ||||||
12 | may be paid in the form of a lump sum within 90 days after | ||||||
13 | receipt of the bill. If the employer contributions are not | ||||||
14 | paid within 90 days after receipt of the bill, then interest | ||||||
15 | will be charged at a rate equal to the System's annual | ||||||
16 | actuarially assumed rate of return on investment compounded | ||||||
17 | annually from the 91st day after receipt of the bill. Payments | ||||||
18 | must be concluded within 3 years after the employer's receipt | ||||||
19 | of the bill. | ||||||
20 | (j) For purposes of determining the required State | ||||||
21 | contribution to the System, the value of the System's assets | ||||||
22 | shall be equal to the actuarial value of the System's assets, | ||||||
23 | which shall be calculated as follows: | ||||||
24 | As of June 30, 2008, the actuarial value of the System's | ||||||
25 | assets shall be equal to the market value of the assets as of | ||||||
26 | that date. In determining the actuarial value of the System's |
| |||||||
| |||||||
1 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
2 | gains or losses from investment return incurred in a fiscal | ||||||
3 | year shall be recognized in equal annual amounts over the | ||||||
4 | 5-year period following that fiscal year. | ||||||
5 | (k) For purposes of determining the required State | ||||||
6 | contribution to the system for a particular year, the | ||||||
7 | actuarial value of assets shall be assumed to earn a rate of | ||||||
8 | return equal to the system's actuarially assumed rate of | ||||||
9 | return. | ||||||
10 | (Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; | ||||||
11 | 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff. | ||||||
12 | 8-11-23.) | ||||||
13 | (40 ILCS 5/16-203) | ||||||
14 | Sec. 16-203. Application and expiration of new benefit | ||||||
15 | increases. | ||||||
16 | (a) As used in this Section, "new benefit increase" means | ||||||
17 | an increase in the amount of any benefit provided under this | ||||||
18 | Article, or an expansion of the conditions of eligibility for | ||||||
19 | any benefit under this Article, that results from an amendment | ||||||
20 | to this Code that takes effect after June 1, 2005 (the | ||||||
21 | effective date of Public Act 94-4). "New benefit increase", | ||||||
22 | however, does not include any benefit increase resulting from | ||||||
23 | the changes made to Article 1 or this Article by Public Act | ||||||
24 | 95-910, Public Act 100-23, Public Act 100-587, Public Act | ||||||
25 | 100-743, Public Act 100-769, Public Act 101-10, Public Act |
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1 | 101-49, Public Act 102-16, or Public Act 102-871 , or this | ||||||
2 | amendatory Act of the 103rd General Assembly . | ||||||
3 | (b) Notwithstanding any other provision of this Code or | ||||||
4 | any subsequent amendment to this Code, every new benefit | ||||||
5 | increase is subject to this Section and shall be deemed to be | ||||||
6 | granted only in conformance with and contingent upon | ||||||
7 | compliance with the provisions of this Section. | ||||||
8 | (c) The Public Act enacting a new benefit increase must | ||||||
9 | identify and provide for payment to the System of additional | ||||||
10 | funding at least sufficient to fund the resulting annual | ||||||
11 | increase in cost to the System as it accrues. | ||||||
12 | Every new benefit increase is contingent upon the General | ||||||
13 | Assembly providing the additional funding required under this | ||||||
14 | subsection. The Commission on Government Forecasting and | ||||||
15 | Accountability shall analyze whether adequate additional | ||||||
16 | funding has been provided for the new benefit increase and | ||||||
17 | shall report its analysis to the Public Pension Division of | ||||||
18 | the Department of Insurance. A new benefit increase created by | ||||||
19 | a Public Act that does not include the additional funding | ||||||
20 | required under this subsection is null and void. If the Public | ||||||
21 | Pension Division determines that the additional funding | ||||||
22 | provided for a new benefit increase under this subsection is | ||||||
23 | or has become inadequate, it may so certify to the Governor and | ||||||
24 | the State Comptroller and, in the absence of corrective action | ||||||
25 | by the General Assembly, the new benefit increase shall expire | ||||||
26 | at the end of the fiscal year in which the certification is |
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1 | made. | ||||||
2 | (d) Every new benefit increase shall expire 5 years after | ||||||
3 | its effective date or on such earlier date as may be specified | ||||||
4 | in the language enacting the new benefit increase or provided | ||||||
5 | under subsection (c). This does not prevent the General | ||||||
6 | Assembly from extending or re-creating a new benefit increase | ||||||
7 | by law. | ||||||
8 | (e) Except as otherwise provided in the language creating | ||||||
9 | the new benefit increase, a new benefit increase that expires | ||||||
10 | under this Section continues to apply to persons who applied | ||||||
11 | and qualified for the affected benefit while the new benefit | ||||||
12 | increase was in effect and to the affected beneficiaries and | ||||||
13 | alternate payees of such persons, but does not apply to any | ||||||
14 | other person, including, without limitation, a person who | ||||||
15 | continues in service after the expiration date and did not | ||||||
16 | apply and qualify for the affected benefit while the new | ||||||
17 | benefit increase was in effect. | ||||||
18 | (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; | ||||||
19 | 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. | ||||||
20 | 6-30-23.) | ||||||
21 | Section 10. The Board of Higher Education Act is amended | ||||||
22 | by adding Section 9.44 as follows: | ||||||
23 | (110 ILCS 205/9.44 new) | ||||||
24 | Sec. 9.44. Student teaching stipend program. |
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1 | (a) As used in this Section: | ||||||
2 | "Educator preparation program" means an approved educator | ||||||
3 | preparation program offered by a recognized school or | ||||||
4 | institution under Article 21B of the School Code. | ||||||
5 | "Eligible cooperating teacher" means a teacher who is | ||||||
6 | licensed under Article 21B of the School Code or has attained | ||||||
7 | the Department of Human Services' Gateways to Opportunity | ||||||
8 | Early Childhood Education Credential Level 5 or 6, who is | ||||||
9 | qualified to teach in the subject area assigned, and who is | ||||||
10 | matched with an eligible student. | ||||||
11 | "Eligible student" means a student who is enrolled in an | ||||||
12 | educator preparation program, who is maintaining satisfactory | ||||||
13 | academic progress, who intends to teach in this State, who is | ||||||
14 | placed as a student teacher, and who is not contracted as the | ||||||
15 | teacher of record for the student teaching placement. | ||||||
16 | "Student teaching" means a supervised clinical experience | ||||||
17 | that prepares a candidate to take full responsibility in an | ||||||
18 | instructional setting. | ||||||
19 | (b) Subject to appropriation, the Board shall create a | ||||||
20 | student teaching stipend program to alleviate the financial | ||||||
21 | burden of student teaching, to encourage students to pursue | ||||||
22 | teaching careers to alleviate this State's teacher shortage, | ||||||
23 | and to encourage teachers to be matched with student teachers. | ||||||
24 | (c) An educator preparation program shall notify the Board | ||||||
25 | of all eligible students and eligible cooperating teachers who | ||||||
26 | qualify for the stipend program. |
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1 | (d) Under the stipend program and subject to available | ||||||
2 | appropriations, the Board shall disburse to each educator | ||||||
3 | preparation program funds to distribute to each eligible | ||||||
4 | student a stipend of up to $10,000 per semester for up to 2 | ||||||
5 | consecutive semesters, plus additional funds to pay the direct | ||||||
6 | costs of operating the stipend program. The educator | ||||||
7 | preparation program shall distribute stipend funds using the | ||||||
8 | standard methods for allocating State-based financial aid or | ||||||
9 | as wages for employment to each eligible student in monthly | ||||||
10 | installments. | ||||||
11 | (e) If there is a surplus appropriated in a fiscal year for | ||||||
12 | the stipend program, then the Board shall increase the amount | ||||||
13 | distributed to each educator preparation program by the same | ||||||
14 | percentage that the surplus bears to the amount required to | ||||||
15 | fully fund the total number of eligible students who qualify | ||||||
16 | for the stipend program that fiscal year. An educator | ||||||
17 | preparation program shall increase the stipend amount | ||||||
18 | distributed to each eligible student in proportion to the | ||||||
19 | surplus. | ||||||
20 | (f) If the amount appropriated in a fiscal year for the | ||||||
21 | stipend program is insufficient to fully fund stipends for the | ||||||
22 | total number of eligible students for that fiscal year, then | ||||||
23 | the Board shall prioritize eligible students based on | ||||||
24 | demonstrated financial need reported by each educator | ||||||
25 | preparation program. | ||||||
26 | (g) Funds not distributed in a particular fiscal year by |
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1 | an educator preparation program under this Section shall be | ||||||
2 | returned to the Board to be used for the subsequent fiscal | ||||||
3 | year's stipend program. | ||||||
4 | (h) An educator preparation program may not prohibit an | ||||||
5 | eligible student from participating in the stipend program or | ||||||
6 | from receiving a stipend from the stipend program. | ||||||
7 | (i) Under the stipend program and subject to available | ||||||
8 | appropriations, the Board shall disburse funds to the State | ||||||
9 | Board of Education, who shall disburse funds to each school | ||||||
10 | district or early childhood education provider employing an | ||||||
11 | eligible cooperating teacher funds to distribute to each | ||||||
12 | eligible cooperating teacher a stipend of up to $2,000 per | ||||||
13 | semester for up to 2 consecutive semesters per academic year. | ||||||
14 | The school district or early childhood education provider | ||||||
15 | shall distribute stipend funds to an eligible cooperating | ||||||
16 | teacher in one payment. | ||||||
17 | (j) An eligible cooperating teacher who receives a stipend | ||||||
18 | must complete State-approved, evidence-based training that | ||||||
19 | aligns with training for instructional coaches, covers basic | ||||||
20 | responsibilities of a cooperating teacher, includes | ||||||
21 | evidence-based practices in supporting student teachers in | ||||||
22 | school or early childhood settings, and includes the effective | ||||||
23 | assessment of student teachers that aligns with State educator | ||||||
24 | performance evaluation requirements or the equivalent for | ||||||
25 | early childhood education. The State Board of Education shall | ||||||
26 | develop training that meets the criteria of this subsection |
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1 | available to cooperating teachers. | ||||||
2 | (k) If there is a surplus appropriated in a fiscal year for | ||||||
3 | the stipend program, then the Board shall increase the amount | ||||||
4 | distributed by the same percentage that the surplus bears to | ||||||
5 | the amount required to fully fund the total number of eligible | ||||||
6 | cooperating teachers who qualify for the stipend program that | ||||||
7 | fiscal year. A school district or early childhood education | ||||||
8 | provider shall increase the stipend amount distributed to each | ||||||
9 | eligible cooperating teacher in proportion to the surplus. | ||||||
10 | (l) If the amount appropriated in a fiscal year for the | ||||||
11 | stipend program is insufficient to fully fund stipends for the | ||||||
12 | total number of eligible cooperating teachers for that fiscal | ||||||
13 | year, then the Board shall reduce the amount distributed by | ||||||
14 | the same percentage that the deficit bears to the amount | ||||||
15 | required to fully fund the total number of eligible | ||||||
16 | cooperating teachers who qualify for the stipend program. A | ||||||
17 | school district or early childhood education provider shall | ||||||
18 | reduce the stipend amount distributed to each eligible | ||||||
19 | cooperating teacher in proportion to the deficit. | ||||||
20 | (m) Nothing in this Section is intended to preclude an | ||||||
21 | educator preparation program from providing an eligible | ||||||
22 | cooperating teacher with additional incentives. | ||||||
23 | (n) An eligible cooperating teacher participating in the | ||||||
24 | stipend program may receive professional development hours for | ||||||
25 | completing cooperating teacher training that count toward the | ||||||
26 | eligible cooperating teacher's license renewal or the |
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1 | equivalent for early childhood education. | ||||||
2 | (o) Subject to available appropriations, the Board shall | ||||||
3 | issue a report evaluating the impact of the stipend program on | ||||||
4 | educator preparation programs, including enrollment and | ||||||
5 | completion rates, hiring rates, and retention rates. The Board | ||||||
6 | shall issue this report in collaboration with the State Board | ||||||
7 | of Education. The Board shall submit this report to the | ||||||
8 | General Assembly and Governor on or before June 30 of the | ||||||
9 | fiscal year following the third consecutive fiscal year during | ||||||
10 | which the stipend program has received funding of at least | ||||||
11 | $2,000,000. | ||||||
12 | (p) The Board shall provide guidance and technical | ||||||
13 | assistance to educator preparation programs on the | ||||||
14 | administration of the stipend program. | ||||||
15 | (q) The Board shall adopt rules regarding the | ||||||
16 | administration of the stipend program, including, but not | ||||||
17 | limited to, the allocation of funds for the stipend program. | ||||||
18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law. |