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1 | | provided by this Section a total
amount equal to 0.5% of the |
2 | | estimated general funds revenues
to the Pension Stabilization |
3 | | Fund. |
4 | | (c) For each fiscal year through Fiscal Year 2013, when the |
5 | | General Assembly's
appropriations and transfers or diversions |
6 | | as required by law
from general funds do not exceed 98% of the
|
7 | | estimated general funds revenues pursuant to subsection (b)
of |
8 | | Section 10, the Comptroller shall transfer from the
General |
9 | | Revenue Fund as provided by this Section a total
amount equal |
10 | | to 1.0% of the estimated general funds revenues
to the Pension |
11 | | Stabilization Fund. |
12 | | (c-5) In Fiscal Year 2014, the State Comptroller shall |
13 | | order transferred and the State Treasurer shall transfer |
14 | | $4,100,000,000 from the General Revenue Fund to the Pension |
15 | | Stabilization Fund. In each fiscal year thereafter, the State |
16 | | Comptroller shall order transferred and the State Treasurer |
17 | | shall transfer from the General Revenue Fund to the Pension |
18 | | Stabilization Fund the amount transferred under this |
19 | | subsection (c-5) in the previous fiscal year increased by |
20 | | 2.25%. |
21 | | (c-10) In addition, in Fiscal Year 2016 and each fiscal |
22 | | year thereafter, the State Comptroller shall order transferred |
23 | | and the State Treasurer shall transfer $693,500,000 from the |
24 | | General Revenue Fund to the Pension Stabilization Fund. |
25 | | (c-15) In addition, in Fiscal Year 2020 and each fiscal |
26 | | year thereafter, the State Comptroller shall order transferred |
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1 | | and the State Treasurer shall transfer $900,000,000 from the |
2 | | General Revenue Fund to the Pension Stabilization Fund. |
3 | | (c-20) In addition, in Fiscal Year 2034 and each fiscal |
4 | | year thereafter, the State Comptroller shall order transferred |
5 | | and the State Treasurer shall transfer $1,100,000,000 from the |
6 | | General Revenue Fund to the Pension Stabilization Fund. |
7 | | (c-25) The transfers made pursuant to subsections (c-5) |
8 | | through (c-20) of this Section shall continue until Fiscal Year |
9 | | 2045 or until each of the designated retirement systems, as |
10 | | defined in Section 25, has achieved a funding ratio of at least |
11 | | 100%, whichever occurs first. |
12 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
13 | | to be transferred each fiscal year under this Section
into the |
14 | | Pension Stabilization Fund on the first day of each
month of |
15 | | that fiscal year or as soon thereafter as possible; except that |
16 | | the final transfer of the fiscal year shall be made as soon as |
17 | | practical after the August 31 following the end of the fiscal |
18 | | year. |
19 | | Until Fiscal Year 2014, before Before the final transfer |
20 | | for a fiscal year is made, the Comptroller shall reconcile the |
21 | | estimated general funds revenues used in calculating the other |
22 | | transfers under this Section for that fiscal year with the |
23 | | actual general funds revenues for that fiscal year. The
final |
24 | | transfer for the fiscal year shall be adjusted so that the
|
25 | | total amount transferred under this Section for that fiscal |
26 | | year is equal to the percentage specified in subsection
(b) or |
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1 | | (c) of this Section, whichever is applicable, of the actual
|
2 | | general funds revenues for that fiscal year. The actual general |
3 | | funds revenues for the fiscal year shall be calculated in a |
4 | | manner consistent with subsection (c) of
Section 10 of this |
5 | | Act.
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6 | | (Source: P.A. 94-839, eff. 6-6-06.) |
7 | | (30 ILCS 122/25)
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8 | | Sec. 25. Transfers from the Pension Stabilization Fund. |
9 | | (a) As used in this Section, "designated retirement |
10 | | systems" means: |
11 | | (1) the State Employees' Retirement System of
|
12 | | Illinois; |
13 | | (2) (blank) the Teachers' Retirement System of the |
14 | | State of
Illinois ; |
15 | | (3) the Illinois Teachers' Retirement Fund State |
16 | | Universities Retirement System ; |
17 | | (4) the Judges Retirement System of Illinois; and |
18 | | (5) the General Assembly Retirement System. |
19 | | (b) As soon as may be practical after any money is |
20 | | deposited into the Pension Stabilization Fund, the State |
21 | | Comptroller shall apportion the deposited amount among the |
22 | | designated retirement systems and the State Comptroller and |
23 | | State Treasurer shall pay the apportioned amounts to the |
24 | | designated retirement systems. The amount deposited shall be |
25 | | apportioned among the designated retirement systems in |
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1 | | proportion to their respective certified State contributions |
2 | | for the State fiscal year in which the payment is made to those |
3 | | systems in the same proportion as their respective portions of |
4 | | the
total actuarial reserve deficiency of the designated |
5 | | retirement systems, as most
recently determined by the |
6 | | Governor's Office of Management and
Budget . Amounts received by |
7 | | a designated retirement system under this Section shall be used |
8 | | for funding the unfunded liabilities of the retirement system. |
9 | | Payments under this Section are authorized by the continuing |
10 | | appropriation under Section 1.7 of the State Pension Funds |
11 | | Continuing Appropriation Act. The total amount transferred to |
12 | | the designated retirement systems in Fiscal Year 2014 shall not |
13 | | be less than $4,100,000,000. In each Fiscal Year thereafter, |
14 | | the total amount transferred to the designated retirement |
15 | | systems shall not be less than the total amount transferred in |
16 | | the previous fiscal year. |
17 | | (c) At the request of the State Comptroller, the Governor's |
18 | | Office of Management and Budget shall
determine the individual |
19 | | and total actuarial reserve deficiencies of the
designated |
20 | | retirement systems. For this purpose, the
Governor's Office of |
21 | | Management and Budget shall consider the
latest available audit |
22 | | and actuarial reports of each of the
retirement systems and the |
23 | | relevant reports and statistics of
the Public Pension Division |
24 | | of the Department of
Financial and Professional Regulation. |
25 | | (d) Payments to the designated retirement systems under |
26 | | this Section shall be in addition to, and not in lieu of, any |
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1 | | State contributions required under Section 2-124, 14-131, |
2 | | 15-155, 16-158, or 18-131 of the Illinois Pension Code.
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3 | | (Source: P.A. 94-839, eff. 6-6-06.) |
4 | | Section 5. The Illinois Pension Code is amended by changing |
5 | | Sections 15-101, 15-103, 15-111, 15-155, 15-157, 15-158.2, |
6 | | 16-101, and 17-101 and adding Sections 15-112.1, 15-155.1, |
7 | | 15-159.1, and 15-165.1 as follows:
|
8 | | (40 ILCS 5/15-101) (from Ch. 108 1/2, par. 15-101)
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9 | | Sec. 15-101. Creation of system. |
10 | | (a) Until July 1, 2013, a A
retirement system is created to |
11 | | provide
retirement annuities and other benefits for employees,
|
12 | | as defined in this
Article, and their dependents.
|
13 | | The system shall be known and may be cited as State |
14 | | Universities Retirement
System. All the business of the system
|
15 | | shall be transacted in that name.
|
16 | | (b) On July 1, 2013, the retirement system established |
17 | | under this Article is merged and consolidated with the Article |
18 | | 16 and 17 retirement systems into a single retirement fund, to |
19 | | be known as the Illinois Teachers' Retirement Fund, which shall |
20 | | be established and administered as prescribed in this Article. |
21 | | (c) In preparation for that consolidation, the Board of |
22 | | this System shall cooperate with the boards of trustees of the |
23 | | Article 16 and 17 retirement systems. |
24 | | (d) At the time of consolidation, or as otherwise directed |
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1 | | by the Board of the Illinois Teachers' Retirement Fund, all |
2 | | assets and liabilities belonging to the System established |
3 | | under this Article shall become the assets and liabilities of |
4 | | the Illinois Teachers' Retirement Fund, and all current or |
5 | | former members and beneficiaries of the System established |
6 | | under this Article shall be deemed current or former |
7 | | participants and beneficiaries of the Illinois Teachers' |
8 | | Retirement Fund. |
9 | | (e) The Illinois Teachers' Retirement Fund shall be the |
10 | | legal successor to the System established under this Article |
11 | | and it may exercise any of the rights and powers and perform |
12 | | any of the duties of that System. The Illinois Teachers' |
13 | | Retirement Fund may, in its discretion, either continue, |
14 | | renegotiate, or terminate any personnel, service contract, |
15 | | lease, or other contract of any of the retirement systems |
16 | | consolidated under this Article. |
17 | | (f) The consolidation of the System established under this |
18 | | Article shall not diminish or impair the benefits of any person |
19 | | who participated in that System, or of any such person's |
20 | | surviving spouse,
children, or other dependents. |
21 | | Benefits already payable by the System on June 30, 2013 |
22 | | shall become payable from the Illinois Teachers' Retirement |
23 | | Fund beginning on July 1, 2013, and shall not be subject to |
24 | | recalculation or combination due to the consolidation. |
25 | | Benefits that first become payable on or after July 1, 2013 |
26 | | shall be calculated and paid as provided in this Article 15. |
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1 | | The consolidation of the System established under this |
2 | | Article does not entitle any person to a recalculation of any |
3 | | benefit previously granted or a refund of any contribution |
4 | | previously paid. |
5 | | (Source: P.A. 83-1440.)
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6 | | (40 ILCS 5/15-103) (from Ch. 108 1/2, par. 15-103)
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7 | | Sec. 15-103. System. "System": Until July 1, 2013, the The |
8 | | State Universities Retirement System.
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9 | | Beginning July 1, 2013, "system" or "fund" means the |
10 | | Illinois Teachers' Retirement Fund created under this Article |
11 | | to consolidate the retirement systems previously established |
12 | | under this Article and Articles 16 and 17 of this Code; |
13 | | depending on the context, the terms may include one or more of |
14 | | those previously established retirement systems. |
15 | | (Source: P.A. 83-1440.)
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16 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
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17 | | Sec. 15-111. Earnings.
"Earnings": An amount paid for |
18 | | personal services equal to the sum of
the basic compensation |
19 | | plus extra compensation for summer teaching,
overtime or other |
20 | | extra service. For periods for which an employee receives
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21 | | service credit under subsection (c) of Section 15-113.1 or |
22 | | Section 15-113.2,
earnings are equal to the basic compensation |
23 | | on which contributions are
paid by the employee during such |
24 | | periods. Compensation for employment which is
irregular, |
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1 | | intermittent and temporary shall not be considered earnings, |
2 | | unless
the participant is also receiving earnings from the |
3 | | employer as an employee
under Section 15-107.
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4 | | With respect to transition pay paid by the University of |
5 | | Illinois to a
person who was a participating employee employed |
6 | | in the fire department of
the University of Illinois's |
7 | | Champaign-Urbana campus immediately prior to
the elimination |
8 | | of that fire department:
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9 | | (1) "Earnings" includes transition pay paid to the |
10 | | employee on or after
the effective date of this amendatory |
11 | | Act of the 91st General Assembly.
|
12 | | (2) "Earnings" includes transition pay paid to the |
13 | | employee before the
effective date of this amendatory Act |
14 | | of the 91st General Assembly only if (i)
employee |
15 | | contributions under Section 15-157 have been withheld from |
16 | | that
transition pay or (ii) the employee pays to the System |
17 | | before January 1, 2001
an amount representing employee |
18 | | contributions under Section 15-157 on that
transition pay. |
19 | | Employee contributions under item (ii) may be paid in a |
20 | | lump
sum, by withholding from additional transition pay |
21 | | accruing before January 1,
2001, or in any other manner |
22 | | approved by the System. Upon payment of the
employee |
23 | | contributions on transition pay, the corresponding |
24 | | employer
contributions become an obligation of the State.
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25 | | Notwithstanding any other provision of this Section, |
26 | | "earnings", except as used in Section 15-158.2, does not |
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1 | | include any future increase in income due to a provision in a |
2 | | collectively bargained contract that grants an increase in |
3 | | earnings based on an employee's expected date of retirement. |
4 | | The changes made to this Section by this amendatory Act of the |
5 | | 98th General Assembly do not apply to an employee who is |
6 | | covered by a collective bargaining agreement or employment |
7 | | contract that is in effect on the effective date of this |
8 | | amendatory Act of the 98th General Assembly and that provides |
9 | | for such increases, until that agreement or contract expires or |
10 | | is amended or renewed. |
11 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
12 | | (40 ILCS 5/15-112.1 new) |
13 | | Sec. 15-112.1. Limitation on earnings and required |
14 | | participation in the self-managed plan. |
15 | | (a) For the purpose of calculating traditional benefit |
16 | | package benefits and contributions, the annual earnings, |
17 | | salary, or wages of a participant shall not exceed the greater |
18 | | of (i) the amount specified under subsection (b-5) of Section |
19 | | 1-160 or (ii) the annual earnings of the participant during the |
20 | | 365 days immediately before the effective date of this Section. |
21 | | If, however, an employment contract that is in place on or |
22 | | before the effective date of this Section authorizes an |
23 | | increase in earnings, salary, or wages on or after the |
24 | | effective date of this Section, then the annual earnings, |
25 | | salary, or wages of the participant during the 365 days that |
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1 | | immediately precede the date that the contract expires may be |
2 | | used in lieu of the amount specified in item (ii) of this |
3 | | Section. |
4 | | (b) Notwithstanding any other provision of this Code, (i) |
5 | | for a participant who does not make an election under Section |
6 | | 15-134.5, any portion of his or her earnings that exceeds the |
7 | | limit specified in subsection (a) of this Section for that year |
8 | | shall be subject to the self-managed plan and (ii) for a |
9 | | participant who makes an election under Section 15-134.5, the |
10 | | entirety of the participant's earnings shall, after the date of |
11 | | the election, be subject to the self-managed plan created under |
12 | | this Section, as is provided in Section 15-158.2.
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13 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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14 | | Sec. 15-155. Employer contributions.
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15 | | (a) The State of Illinois shall make contributions by |
16 | | appropriations of
amounts which, together with the other |
17 | | employer contributions from trust,
federal, and other funds, |
18 | | employee contributions, income from investments,
and other |
19 | | income of this System, will be sufficient to meet the cost of
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20 | | maintaining and administering the System on a 100% 90% funded |
21 | | basis in accordance
with actuarial recommendations.
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22 | | The Board shall determine the amount of State contributions |
23 | | required for
each fiscal year on the basis of the actuarial |
24 | | tables and other assumptions
adopted by the Board and the |
25 | | recommendations of the actuary, using the formula
in subsection |
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1 | | (a-1).
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2 | | (a-1) For State fiscal years 2012 and 2013 through 2045 , |
3 | | the minimum contribution
to the System to be made by the State |
4 | | for each fiscal year shall be an amount
determined by the |
5 | | System to be sufficient to bring the total assets of the
System |
6 | | up to 90% of the total actuarial liabilities of the System by |
7 | | the end of
State fiscal year 2045. In making these |
8 | | determinations, the required State
contribution shall be |
9 | | calculated each year as a level percentage of payroll
over the |
10 | | years remaining to and including fiscal year 2045 and shall be
|
11 | | determined under the projected unit credit actuarial cost |
12 | | method.
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13 | | Beginning July 1, 2013, the assets and liabilities of the |
14 | | Article 16 and 17 retirement systems shall be calculated as |
15 | | assets and liabilities of the Illinois Teachers' Retirement |
16 | | Fund under this Article. |
17 | | For State fiscal years 2014 through 2045 or until the State |
18 | | has amortized 100% of the total cost of benefits accrued by |
19 | | July 1, 2013, whichever is earlier, in addition to any employer |
20 | | contributions required from the State as an employer, the |
21 | | minimum contribution to the Fund to be made by the State for |
22 | | each fiscal year shall be an amount determined by the Board to |
23 | | be sufficient to amortize, by the end of State fiscal year |
24 | | 2045, the total cost of the benefits of the Fund arising before |
25 | | July 1, 2013. In making these determinations, the required |
26 | | State contribution shall be calculated each year as a level |
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1 | | percentage of payroll over the years remaining to and including |
2 | | fiscal year 2045 and shall be determined under the projected |
3 | | unit credit actuarial cost method. |
4 | | Beginning with State fiscal year 2014, the minimum required |
5 | | contribution of employers under this Article shall be |
6 | | determined as a percentage of projected payroll, and shall be |
7 | | sufficient to produce an annual amount equal to the employer's |
8 | | normal cost for that fiscal year and any unfunded accrued |
9 | | liability assigned to the employer that year arising from |
10 | | benefits accrued after July 1,2013. |
11 | | For use in determining the employer's contribution for |
12 | | unfunded accrued liability the Fund shall maintain a separate |
13 | | account for each employer. The separate account shall be |
14 | | maintained in such form and detail as the Fund determines to be |
15 | | appropriate. The separate account shall reflect the following |
16 | | items to the extent that they are attributable to that employer |
17 | | and arise on or after July 1, 2013: employer contributions, |
18 | | employee contributions, investment returns, payments of |
19 | | benefits, and that employer's proportionate share of the Fund's |
20 | | administrative expenses.
In the event that the Board determines |
21 | | that there is a deficiency or surplus in the account of an |
22 | | employer, the Board shall determine the employer's |
23 | | contribution rate so as to address that deficiency or surplus |
24 | | over a reasonable period of time as determined by the Board, |
25 | | which shall be no more than 10 years. |
26 | | The State shall also be required to make an annual |
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1 | | contribution to each employer of a member who would have been |
2 | | considered a member of Article 15 or 16 before the effective |
3 | | date of this amendatory Act of the 98th General Assembly of the |
4 | | total employer normal cost as determined by the system for |
5 | | FY14. Every 5 years the Commission on Government Forecasting |
6 | | and Accountability shall review the contribution in this |
7 | | paragraph and the total current employer normal cost and submit |
8 | | the findings to the General Assembly. |
9 | | For State fiscal years 1996 through 2005, the State |
10 | | contribution to
the System, as a percentage of the applicable |
11 | | employee payroll, shall be
increased in equal annual increments |
12 | | so that by State fiscal year 2011, the
State is contributing at |
13 | | the rate required under this Section.
|
14 | | Notwithstanding any other provision of this Article, the |
15 | | total required State
contribution for State fiscal year 2006 is |
16 | | $166,641,900.
|
17 | | Notwithstanding any other provision of this Article, the |
18 | | total required State
contribution for State fiscal year 2007 is |
19 | | $252,064,100.
|
20 | | For each of State fiscal years 2008 through 2009, the State |
21 | | contribution to
the System, as a percentage of the applicable |
22 | | employee payroll, shall be
increased in equal annual increments |
23 | | from the required State contribution for State fiscal year |
24 | | 2007, so that by State fiscal year 2011, the
State is |
25 | | contributing at the rate otherwise required under this Section.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State contribution for State fiscal year 2010 is |
2 | | $702,514,000 and shall be made from the State Pensions Fund and |
3 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
4 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
5 | | share of bond sale expenses determined by the System's share of |
6 | | total bond proceeds, (ii) any amounts received from the General |
7 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
8 | | proceeds due to the issuance of discounted bonds, if |
9 | | applicable. |
10 | | Notwithstanding any other provision of this Article, the
|
11 | | total required State contribution for State fiscal year 2011 is
|
12 | | the amount recertified by the System on or before April 1, 2011 |
13 | | pursuant to Section 15-165 and shall be made from the State |
14 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
15 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
16 | | less (i) the pro rata
share of bond sale expenses determined by |
17 | | the System's share of
total bond proceeds, (ii) any amounts |
18 | | received from the General
Revenue Fund in fiscal year 2011, and |
19 | | (iii) any reduction in bond
proceeds due to the issuance of |
20 | | discounted bonds, if
applicable. |
21 | | Beginning in State fiscal year 2046, the minimum State |
22 | | contribution for
each fiscal year shall be the amount needed to |
23 | | maintain the total assets of
the System at 100% 90% of the |
24 | | total 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 |
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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
calculated |
14 | | under this Section and
certified under Section 15-165, shall |
15 | | not exceed an amount equal to (i) the
amount of the required |
16 | | State contribution that would have been calculated under
this |
17 | | Section for that fiscal year if the System had not received any |
18 | | payments
under subsection (d) of Section 7.2 of the General |
19 | | Obligation Bond Act, minus
(ii) the portion of the State's |
20 | | total debt service payments for that fiscal
year on the bonds |
21 | | issued in fiscal year 2003 for the purposes of that Section |
22 | | 7.2, as determined
and certified by the Comptroller, that is |
23 | | the same as the System's portion of
the total moneys |
24 | | distributed under subsection (d) of Section 7.2 of the General
|
25 | | Obligation Bond Act. In determining this maximum for State |
26 | | fiscal years 2008 through 2010, however, the amount referred to |
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1 | | in item (i) shall be increased, as a percentage of the |
2 | | applicable employee payroll, in equal increments calculated |
3 | | from the sum of the required State contribution for State |
4 | | fiscal year 2007 plus the applicable portion of the State's |
5 | | total debt service payments for fiscal year 2007 on the bonds |
6 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
7 | | the General
Obligation Bond Act, so that, by State fiscal year |
8 | | 2011, the
State is contributing at the rate otherwise required |
9 | | under this Section.
|
10 | | (a-5) Pursuant to Article XIII of the 1970 Constitution of |
11 | | the State of Illinois, beginning on July 1, 2013, the State |
12 | | shall, as a retirement benefit to each participant and |
13 | | annuitant of the System be contractually obligated to the |
14 | | System (as a fiduciary and trustee of the participants and |
15 | | annuitants) to pay the Annual Required State Contribution, as |
16 | | determined by the Board of the System using generally accepted |
17 | | actuarial principles, as is necessary to bring the total assets |
18 | | of the System up to 100% of the total actuarial liabilities of |
19 | | the System by the end of State fiscal year 2045. As a further |
20 | | retirement benefit and contractual obligation, each fiscal |
21 | | year, the State shall pay to each designated retirement system |
22 | | the Annual Required State Contribution certified by the Board |
23 | | for that fiscal year. Payments of the Annual Required State |
24 | | Contribution for each fiscal year shall be made in equal |
25 | | monthly installments. This Section, and the security it |
26 | | provides to participants and annuitants is intended to be, and |
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1 | | is, a contractual right that is part of the pension benefits |
2 | | provided to the participants and annuitants. Notwithstanding |
3 | | anything to the contrary in the Court of Claims Act or any |
4 | | other law, a designated retirement system has the exclusive |
5 | | right to and shall bring a Mandamus action in the Circuit Court |
6 | | of Champaign County against the State to compel the State to |
7 | | make any installment of the Annual Required State Contribution |
8 | | required by this Section, irrespective of other remedies that |
9 | | may be available to the System. Each member or annuitant of the |
10 | | System has the right to bring a Mandamus action against the |
11 | | System in the Circuit Court in any judicial district in which |
12 | | the System maintains an office if the System fails to bring an |
13 | | action specified in this Section, irrespective of other |
14 | | remedies that may be available to the member or annuitant. |
15 | | (b) If an employee is paid from trust or federal funds, the |
16 | | employer
shall pay to the Board contributions from those funds |
17 | | which are
sufficient to cover the accruing normal costs on |
18 | | behalf of the employee.
However, universities having employees |
19 | | who are compensated out of local
auxiliary funds, income funds, |
20 | | or service enterprise funds are not required
to pay such |
21 | | contributions on behalf of those employees. The local auxiliary
|
22 | | funds, income funds, and service enterprise funds of |
23 | | universities shall not be
considered trust funds for the |
24 | | purpose of this Article, but funds of alumni
associations, |
25 | | foundations, and athletic associations which are affiliated |
26 | | with
the universities included as employers under this Article |
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1 | | and other employers
which do not receive State appropriations |
2 | | are considered to be trust funds for
the purpose of this |
3 | | Article.
|
4 | | (b-1) The City of Urbana and the City of Champaign shall |
5 | | each make
employer contributions to this System for their |
6 | | respective firefighter
employees who participate in this |
7 | | System pursuant to subsection (h) of Section
15-107. The rate |
8 | | of contributions to be made by those municipalities shall
be |
9 | | determined annually by the Board on the basis of the actuarial |
10 | | assumptions
adopted by the Board and the recommendations of the |
11 | | actuary, and shall be
expressed as a percentage of salary for |
12 | | each such employee. The Board shall
certify the rate to the |
13 | | affected municipalities as soon as may be practical.
The |
14 | | employer contributions required under this subsection shall be |
15 | | remitted by
the municipality to the System at the same time and |
16 | | in the same manner as
employee contributions.
|
17 | | (c) Through State fiscal year 1995: The total employer |
18 | | contribution shall
be apportioned among the various funds of |
19 | | the State and other employers,
whether trust, federal, or other |
20 | | funds, in accordance with actuarial procedures
approved by the |
21 | | Board. State of Illinois contributions for employers receiving
|
22 | | State appropriations for personal services shall be payable |
23 | | from appropriations
made to the employers or to the System. The |
24 | | contributions for Class I
community colleges covering earnings |
25 | | other than those paid from trust and
federal funds, shall be |
26 | | payable solely from appropriations to the Illinois
Community |
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1 | | College Board or the System for employer contributions.
|
2 | | (d) Beginning in State fiscal year 1996, the required State |
3 | | contributions
to the System shall be appropriated directly to |
4 | | the System and shall be payable
through vouchers issued in |
5 | | accordance with subsection (c) of Section 15-165, except as |
6 | | provided in subsection (g).
|
7 | | (e) The State Comptroller shall draw warrants payable to |
8 | | the System upon
proper certification by the System or by the |
9 | | employer in accordance with the
appropriation laws and this |
10 | | Code.
|
11 | | (f) Normal costs under this Section means liability for
|
12 | | pensions and other benefits which accrues to the System because |
13 | | of the
credits earned for service rendered by the participants |
14 | | during the
fiscal year and expenses of administering the |
15 | | System, but shall not
include the principal of or any |
16 | | redemption premium or interest on any bonds
issued by the Board |
17 | | or any expenses incurred or deposits required in
connection |
18 | | therewith.
|
19 | | (g) If the amount of a participant's earnings for any |
20 | | academic year used to determine the final rate of earnings, |
21 | | determined on a full-time equivalent basis, exceeds the amount |
22 | | of his or her earnings with the same employer for the previous |
23 | | academic year, determined on a full-time equivalent basis, by |
24 | | more than 6%, the participant's employer shall pay to the |
25 | | System, in addition to all other payments required under this |
26 | | Section and in accordance with guidelines established by the |
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1 | | System, the present value of the increase in benefits resulting |
2 | | from the portion of the increase in earnings that is in excess |
3 | | of 6%. This present value shall be computed by the System on |
4 | | the basis of the actuarial assumptions and tables used in the |
5 | | most recent actuarial valuation of the System that is available |
6 | | at the time of the computation. The System may require the |
7 | | employer to provide any pertinent information or |
8 | | documentation. |
9 | | Whenever it determines that a payment is or may be required |
10 | | under this subsection (g), the System shall calculate the |
11 | | amount of the payment and bill the employer for that amount. |
12 | | The bill shall specify the calculations used to determine the |
13 | | amount due. If the employer disputes the amount of the bill, it |
14 | | may, within 30 days after receipt of the bill, apply to the |
15 | | System in writing for a recalculation. The application must |
16 | | specify in detail the grounds of the dispute and, if the |
17 | | employer asserts that the calculation is subject to subsection |
18 | | (h) or (i) of this Section, must include an affidavit setting |
19 | | forth and attesting to all facts within the employer's |
20 | | knowledge that are pertinent to the applicability of subsection |
21 | | (h) or (i). Upon receiving a timely application for |
22 | | recalculation, the System shall review the application and, if |
23 | | appropriate, recalculate the amount due.
|
24 | | The employer contributions required under this subsection |
25 | | (g) (f) may be paid in the form of a lump sum within 90 days |
26 | | after receipt of the bill. If the employer contributions are |
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1 | | not paid within 90 days after receipt of the bill, then |
2 | | interest will be charged at a rate equal to the System's annual |
3 | | actuarially assumed rate of return on investment compounded |
4 | | annually from the 91st day after receipt of the bill. Payments |
5 | | must be concluded within 3 years after the employer's receipt |
6 | | of the bill. |
7 | | (h) This subsection (h) applies only to payments made or |
8 | | salary increases given on or after June 1, 2005 but before July |
9 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
10 | | require the System to refund any payments received before July |
11 | | 31, 2006 (the effective date of Public Act 94-1057). |
12 | | When assessing payment for any amount due under subsection |
13 | | (g), the System shall exclude earnings increases paid to |
14 | | participants under contracts or collective bargaining |
15 | | agreements entered into, amended, or renewed before June 1, |
16 | | 2005.
|
17 | | When assessing payment for any amount due under subsection |
18 | | (g), the System shall exclude earnings increases paid to a |
19 | | participant at a time when the participant is 10 or more years |
20 | | from retirement eligibility under Section 15-135.
|
21 | | When assessing payment for any amount due under subsection |
22 | | (g), the System shall exclude earnings increases resulting from |
23 | | overload work, including a contract for summer teaching, or |
24 | | overtime when the employer has certified to the System, and the |
25 | | System has approved the certification, that: (i) in the case of |
26 | | overloads (A) the overload work is for the sole purpose of |
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1 | | academic instruction in excess of the standard number of |
2 | | instruction hours for a full-time employee occurring during the |
3 | | academic year that the overload is paid and (B) the earnings |
4 | | increases are equal to or less than the rate of pay for |
5 | | academic instruction computed using the participant's current |
6 | | salary rate and work schedule; and (ii) in the case of |
7 | | overtime, the overtime was necessary for the educational |
8 | | mission. |
9 | | When assessing payment for any amount due under subsection |
10 | | (g), the System shall exclude any earnings increase resulting |
11 | | from (i) a promotion for which the employee moves from one |
12 | | classification to a higher classification under the State |
13 | | Universities Civil Service System, (ii) a promotion in academic |
14 | | rank for a tenured or tenure-track faculty position, or (iii) a |
15 | | promotion that the Illinois Community College Board has |
16 | | recommended in accordance with subsection (k) of this Section. |
17 | | These earnings increases shall be excluded only if the |
18 | | promotion is to a position that has existed and been filled by |
19 | | a member for no less than one complete academic year and the |
20 | | earnings increase as a result of the promotion is an increase |
21 | | that results in an amount no greater than the average salary |
22 | | paid for other similar positions. |
23 | | (i) When assessing payment for any amount due under |
24 | | subsection (g), the System shall exclude any salary increase |
25 | | described in subsection (h) of this Section given on or after |
26 | | July 1, 2011 but before July 1, 2014 under a contract or |
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1 | | collective bargaining agreement entered into, amended, or |
2 | | renewed on or after June 1, 2005 but before July 1, 2011. |
3 | | Notwithstanding any other provision of this Section, any |
4 | | payments made or salary increases given after June 30, 2014 |
5 | | shall be used in assessing payment for any amount due under |
6 | | subsection (g) of this Section.
|
7 | | (j) The System shall prepare a report and file copies of |
8 | | the report with the Governor and the General Assembly by |
9 | | January 1, 2007 that contains all of the following information: |
10 | | (1) The number of recalculations required by the |
11 | | changes made to this Section by Public Act 94-1057 for each |
12 | | employer. |
13 | | (2) The dollar amount by which each employer's |
14 | | contribution to the System was changed due to |
15 | | recalculations required by Public Act 94-1057. |
16 | | (3) The total amount the System received from each |
17 | | employer as a result of the changes made to this Section by |
18 | | Public Act 94-4. |
19 | | (4) The increase in the required State contribution |
20 | | resulting from the changes made to this Section by Public |
21 | | Act 94-1057. |
22 | | (k) The Illinois Community College Board shall adopt rules |
23 | | for recommending lists of promotional positions submitted to |
24 | | the Board by community colleges and for reviewing the |
25 | | promotional lists on an annual basis. When recommending |
26 | | promotional lists, the Board shall consider the similarity of |
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1 | | the positions submitted to those positions recognized for State |
2 | | universities by the State Universities Civil Service System. |
3 | | The Illinois Community College Board shall file a copy of its |
4 | | findings with the System. The System shall consider the |
5 | | findings of the Illinois Community College Board when making |
6 | | determinations under this Section. The System shall not exclude |
7 | | any earnings increases resulting from a promotion when the |
8 | | promotion was not submitted by a community college. Nothing in |
9 | | this subsection (k) shall require any community college to |
10 | | submit any information to the Community College Board.
|
11 | | (l) For purposes of determining the required State |
12 | | contribution to the System, the value of the System's assets |
13 | | shall be equal to the actuarial value of the System's assets, |
14 | | which shall be calculated as follows: |
15 | | As of June 30, 2008, the actuarial value of the System's |
16 | | assets shall be equal to the market value of the assets as of |
17 | | that date. In determining the actuarial value of the System's |
18 | | assets for fiscal years after June 30, 2008, any actuarial |
19 | | gains or losses from investment return incurred in a fiscal |
20 | | year shall be recognized in equal annual amounts over the |
21 | | 5-year period following that fiscal year. |
22 | | (m) For purposes of determining the required State |
23 | | contribution to the system for a particular year, the actuarial |
24 | | value of assets shall be assumed to earn a rate of return equal |
25 | | to the system's actuarially assumed rate of return. |
26 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
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1 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
2 | | 7-13-12; revised 10-17-12.)
|
3 | | (40 ILCS 5/15-155.1 new) |
4 | | Sec. 15-155.1. Actions to enforce payments by employers |
5 | | other than the State. Any employer, other than the State, that |
6 | | fails to transmit to the System contributions required of
it |
7 | | under this Article or contributions required of employees, for |
8 | | more
than 90 days after such contributions are due, is subject |
9 | | to the following:
after giving notice to the employer, the |
10 | | System may certify
to the State Comptroller or the Illinois |
11 | | Community College Board, whichever is applicable, the
amounts |
12 | | of such delinquent payments and the State Comptroller or the |
13 | | Illinois Community College Board, whichever is applicable, |
14 | | shall deduct the amounts so certified
or any part thereof from |
15 | | any State funds to be remitted
to the employer and shall
pay |
16 | | the amount so deducted to the System. If State funds from which
|
17 | | such deductions may be made are not available, the System may |
18 | | proceed
against the employer to recover the
amounts of such |
19 | | delinquent payments in the appropriate circuit court. |
20 | | The System may provide for an
audit of the records of an |
21 | | employer, other than the State, as
may be required to establish |
22 | | the amounts of required contributions.
The employer shall make |
23 | | its records
available to the System for the purpose of such |
24 | | audit. The cost of such
audit shall be added to the amount of |
25 | | the delinquent payments and may
be recovered by the System from |
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1 | | the employer at the same time and in the same manner as the |
2 | | delinquent payments
are recovered.
|
3 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
|
4 | | Sec. 15-157. Employee Contributions.
|
5 | | (a) Each participating employee
shall make contributions |
6 | | towards the retirement
benefits payable under the retirement |
7 | | program applicable to the
employee from each payment
of |
8 | | earnings applicable to employment under this system on and |
9 | | after the
date of becoming a participant as follows: Prior to |
10 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
11 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
12 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
13 | | are to be considered as normal contributions for purposes
of |
14 | | this Article.
|
15 | | Each participant who is a police officer or firefighter |
16 | | shall make normal
contributions of 8% of each payment of |
17 | | earnings applicable to employment as a
police officer or |
18 | | firefighter under this system on or after September 1, 1981,
|
19 | | unless he or she files with the board within 60 days after the |
20 | | effective date
of this amendatory Act of 1991 or 60 days after |
21 | | the board receives notice that
he or she is employed as a |
22 | | police officer or firefighter, whichever is later,
a written |
23 | | notice waiving the retirement formula provided by Rule 4 of |
24 | | Section
15-136. This waiver shall be irrevocable. If a |
25 | | participant had met the
conditions set forth in Section |
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1 | | 15-132.1 prior to the effective date of this
amendatory Act of |
2 | | 1991 but failed to make the additional normal contributions
|
3 | | required by this paragraph, he or she may elect to pay the |
4 | | additional
contributions plus compound interest at the |
5 | | effective rate. If such payment
is received by the board, the |
6 | | service shall be considered as police officer
service in |
7 | | calculating the retirement annuity under Rule 4 of Section |
8 | | 15-136.
While performing service described in clause (i) or |
9 | | (ii) of Rule 4 of Section
15-136, a participating employee |
10 | | shall be deemed to be employed as a
firefighter for the purpose |
11 | | of determining the rate of employee contributions
under this |
12 | | Section.
|
13 | | (b) Starting September 1, 1969, each participating |
14 | | employee shall make
additional contributions of 1/2 of 1% of |
15 | | earnings to finance a portion
of the cost of the annual |
16 | | increases in retirement annuity provided under
Section 15-136, |
17 | | except that with respect to participants in the
self-managed |
18 | | plan this additional contribution shall be used to finance the
|
19 | | benefits obtained under that retirement program.
|
20 | | (c) In addition to the amounts described in subsections (a) |
21 | | and (b) of this
Section, each participating employee shall make |
22 | | contributions of 1% of earnings
applicable under this system on |
23 | | and after August 1, 1959. The contributions
made under this |
24 | | subsection (c) shall be considered as survivor's insurance
|
25 | | contributions for purposes of this Article if the employee is |
26 | | covered under
the traditional benefit package, and such |
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1 | | contributions shall be considered
as additional contributions |
2 | | for purposes of this Article if the employee is
participating |
3 | | in the self-managed plan or has elected to participate in the
|
4 | | portable benefit package and has completed the applicable |
5 | | one-year waiting
period. Contributions in excess of $80 during |
6 | | any fiscal year beginning before
August 31, 1969 and in excess |
7 | | of $120 during any fiscal year thereafter until
September 1, |
8 | | 1971 shall be considered as additional contributions for |
9 | | purposes
of this Article.
|
10 | | (d) If the board by board rule so permits and subject to |
11 | | such conditions
and limitations as may be specified in its |
12 | | rules, a participant may make
other additional contributions of |
13 | | such percentage of earnings or amounts as
the participant shall |
14 | | elect in a written notice thereof received by the board.
|
15 | | (e) That fraction of a participant's total accumulated |
16 | | normal
contributions, the numerator of which is equal to the |
17 | | number of years of
service in excess of that which is required |
18 | | to qualify for the maximum
retirement annuity, and the |
19 | | denominator of which is equal to the total
service of the |
20 | | participant, shall be considered as accumulated additional
|
21 | | contributions. The determination of the applicable maximum |
22 | | annuity and
the adjustment in contributions required by this |
23 | | provision shall be made
as of the date of the participant's |
24 | | retirement.
|
25 | | (f) Notwithstanding the foregoing, a participating |
26 | | employee shall not
be required to make contributions under this |
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1 | | Section after the date upon
which continuance of such |
2 | | contributions would otherwise cause his or her
retirement |
3 | | annuity to exceed the maximum retirement annuity as specified |
4 | | in
clause (1) of subsection (c) of Section 15-136.
|
5 | | (g) A participating employee may make contributions for the |
6 | | purchase of
service credit under this Article.
|
7 | | (h) Notwithstanding any provision of this Code to the |
8 | | contrary, (i) for a member who does not file an election under |
9 | | subsection (e) of Section 15-158.2, any contributions on |
10 | | amounts of earnings in excess of the limit specified in Section |
11 | | 15-112.1 for that year shall instead be used to finance |
12 | | self-managed plan benefits and (ii) for a member who files an |
13 | | election under subsection (e) of Section 15-158.2, any |
14 | | contributions made after the date of the election, including |
15 | | the contributions for a survivor's annuity, shall be used to |
16 | | finance the benefits under Section 15-158.2. Notwithstanding |
17 | | any provision of this Code to the contrary, a member who does |
18 | | not file an election under subsection (a-5) of Section 15-158.2 |
19 | | shall contribute towards the traditional benefit package a |
20 | | percentage of earnings equal to the greater of (i) one-half of |
21 | | the normal cost of the traditional benefit package or (ii) 6% |
22 | | of earnings.
|
23 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, |
24 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; |
25 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
|
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1 | | (40 ILCS 5/15-158.2)
|
2 | | Sec. 15-158.2. Self-managed plan.
|
3 | | (a) Purpose. The General Assembly finds that it is |
4 | | important for colleges
and universities to be able to attract |
5 | | and retain the most qualified employees
and that in order to |
6 | | attract and retain these employees, colleges and
universities |
7 | | should have the flexibility to provide a defined contribution
|
8 | | plan as an alternative for eligible employees who elect not to |
9 | | participate
in a defined benefit retirement program provided |
10 | | under this Article.
Accordingly, the State Universities |
11 | | Retirement System is hereby authorized to
establish and |
12 | | administer a self-managed plan, which shall offer |
13 | | participating
employees the opportunity to accumulate assets |
14 | | for retirement through a
combination of employee and employer |
15 | | contributions that may be invested in
mutual funds, collective |
16 | | investment funds, or other investment products and
used to |
17 | | purchase annuity contracts, either fixed or variable or a |
18 | | combination
thereof. The plan must be qualified under the |
19 | | Internal Revenue Code of 1986.
|
20 | | (b) Adoption by employers. Each employer subject to this |
21 | | Article may
elect to adopt the self-managed plan established |
22 | | under this Section; this
election is irrevocable. An employer's |
23 | | election to adopt the self-managed
plan makes available to the |
24 | | eligible employees of that employer the elections
described in |
25 | | Section 15-134.5.
|
26 | | The State Universities Retirement System shall be the plan |
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1 | | sponsor for the
self-managed plan and shall prepare a plan |
2 | | document and prescribe such rules
and procedures as are |
3 | | considered necessary or desirable for the administration
of the |
4 | | self-managed plan. Consistent with its fiduciary duty to the
|
5 | | participants and beneficiaries of the self-managed plan, the |
6 | | Board of Trustees
of the System may delegate aspects of plan |
7 | | administration as it sees fit to
companies authorized to do |
8 | | business in this State, to the employers, or to a
combination |
9 | | of both.
|
10 | | (c) Selection of service providers and funding vehicles. |
11 | | The System, in
consultation with the employers, shall solicit |
12 | | proposals to provide
administrative services and funding |
13 | | vehicles for the self-managed plan from
insurance and annuity |
14 | | companies and mutual fund companies, banks, trust
companies, or |
15 | | other financial institutions authorized to do business in this
|
16 | | State. In reviewing the proposals received and approving and |
17 | | contracting with
no fewer than 2 and no more than 7 companies, |
18 | | the Board of Trustees of the System shall
consider, among other |
19 | | things, the following criteria:
|
20 | | (1) the nature and extent of the benefits that would be |
21 | | provided
to the participants;
|
22 | | (2) the reasonableness of the benefits in relation to |
23 | | the premium
charged;
|
24 | | (3) the suitability of the benefits to the needs and
|
25 | | interests of the participating employees and the employer;
|
26 | | (4) the ability of the company to provide benefits |
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1 | | under the contract and
the financial stability of the |
2 | | company; and
|
3 | | (5) the efficacy of the contract in the recruitment and |
4 | | retention of
employees.
|
5 | | The System, in consultation with the employers, shall |
6 | | periodically review
each approved company. A company may |
7 | | continue to provide administrative
services and funding |
8 | | vehicles for the self-managed plan only so long as
it continues |
9 | | to be an approved company under contract with the Board.
|
10 | | (d) Employee Direction. Employees who are participating in |
11 | | the program
must be allowed to direct the transfer of their |
12 | | account balances among the
various investment options offered, |
13 | | subject to applicable contractual
provisions.
The participant |
14 | | shall not be deemed a fiduciary by reason of providing such
|
15 | | investment direction. A person who is a fiduciary shall not be |
16 | | liable for any
loss resulting from such investment direction |
17 | | and shall not be deemed to have
breached any fiduciary duty by |
18 | | acting in accordance with that direction.
Neither the System |
19 | | nor the employer guarantees any of the investments in the
|
20 | | employee's account balances.
|
21 | | (e) Participation. An employee eligible to participate in |
22 | | the
self-managed plan must make a written election in |
23 | | accordance with the
provisions of Section 15-134.5 and the |
24 | | procedures established by the System or become subject to the |
25 | | limitation specified in Section 15-112.1 .
Participation in the |
26 | | self-managed plan by an electing employee shall begin
on the |
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1 | | first day of the first pay period following the later of the |
2 | | date the
employee's election is filed with the System , or the |
3 | | effective date as of
which the employee's employer begins to |
4 | | offer participation in the self-managed
plan , or the date the |
5 | | participant's annual earnings exceeds the limitation specified |
6 | | in Section 15-112.1 . Employers may not make the self-managed |
7 | | plan available earlier than
January 1, 1998. An employee's |
8 | | participation in any other retirement program
administered by |
9 | | the System under this Article shall terminate on the date that
|
10 | | participation in the self-managed plan begins.
|
11 | | An employee who participates has elected to participate in |
12 | | the self-managed plan under
this Section must continue |
13 | | participation while employed in an eligible
position, and may |
14 | | not participate in any other retirement program administered
by |
15 | | the System under this Article while employed by that employer |
16 | | or any other
employer that has adopted the self-managed plan, |
17 | | unless the self-managed plan
is terminated in accordance with |
18 | | subsection (i).
|
19 | | Participation in the self-managed plan under this Section |
20 | | shall constitute
membership in the State Universities |
21 | | Retirement System.
|
22 | | A participant under this Section shall be entitled to the |
23 | | benefits of
Article 20 of this Code.
|
24 | | (f) Establishment of Initial Account Balance. If at the |
25 | | time an employee
elects to participate in the self-managed plan |
26 | | he or she has rights and credits
in the System due to previous |
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1 | | participation in the traditional benefit package,
the System |
2 | | shall establish for the employee an opening account balance in |
3 | | the
self-managed plan, equal to the amount of contribution |
4 | | refund that the employee
would be eligible to receive under |
5 | | Section 15-154 if the employee terminated
employment on that |
6 | | date and elected a refund of contributions, except that this
|
7 | | hypothetical refund shall include interest at the effective |
8 | | rate for the
respective years. The System shall transfer assets |
9 | | from the defined benefit
retirement program to the self-managed |
10 | | plan, as a tax free transfer in
accordance with Internal |
11 | | Revenue Service guidelines, for purposes of funding
the |
12 | | employee's opening account balance.
|
13 | | (g) No Duplication of Service Credit. Notwithstanding any |
14 | | other provision
of this Article, an employee may not purchase |
15 | | or receive service or service
credit applicable to any other |
16 | | retirement program administered by the System
under this |
17 | | Article for any period during which the employee was a |
18 | | participant
in the self-managed plan established under this |
19 | | Section.
|
20 | | (h) Contributions. |
21 | | (1) The self-managed plan shall be funded by |
22 | | contributions
from employees participating in the |
23 | | self-managed plan and employer
contributions as provided |
24 | | in this Section.
|
25 | | (A) Before the effective date of this amendatory |
26 | | Act of the 98th General Assembly, the The contribution |
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1 | | rate for employees participating in the self-managed |
2 | | plan
under this Section shall be equal to the employee |
3 | | contribution rate for other
participants in the |
4 | | System, as provided in Section 15-157. This required
|
5 | | contribution shall be made as an "employer pick-up" |
6 | | under Section 414(h) of the
Internal Revenue Code of |
7 | | 1986 or any successor Section thereof. Any employee
|
8 | | participating in the System's traditional benefit |
9 | | package prior to his or her
election to participate in |
10 | | the self-managed plan shall continue to have the
|
11 | | employer pick up the contributions required under |
12 | | Section 15-157. However, the
amounts picked up after |
13 | | the election of the self-managed plan shall be remitted
|
14 | | to and treated as assets of the self-managed plan. In |
15 | | no event shall an
employee have an option of receiving |
16 | | these amounts in cash. Employees may make
additional |
17 | | contributions to the
self-managed plan in accordance |
18 | | with procedures prescribed by the System, to
the extent |
19 | | permitted under rules prescribed by the System.
|
20 | | (B) On and after the effective date of this |
21 | | amendatory Act of the 98th General Assembly, the |
22 | | contribution rate for participants in the self-managed |
23 | | plan
shall be, (i) for a participant who does not file |
24 | | an election under subsection (e) of this Section, 6% of |
25 | | the amount of earnings in excess of the limit specified |
26 | | in 15-112.1 for that year, in addition to the amount |
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1 | | specified under subsection (h) of Section 15-157 for |
2 | | that year and (ii) for a participant who files an |
3 | | election under subsection (e) of this Section, 8% of |
4 | | any amount of earnings up to and including the limit |
5 | | specified in Section 15-112.1 for that year and 6% of |
6 | | any amount of earnings in excess of that limit for that |
7 | | year. This required
contribution shall be made as an |
8 | | employer pick-up under Section 414(h) of the
Internal |
9 | | Revenue Code of 1986 or any successor Section thereof. |
10 | | Any participant in the System's traditional benefit |
11 | | package prior to his or her
election to participate in |
12 | | the self-managed plan shall continue to have the
|
13 | | employer pick up the contributions required under |
14 | | Section 15-157. However, the
amounts picked up after |
15 | | the election of the self-managed plan shall be remitted
|
16 | | to and treated as assets of the self-managed plan. In |
17 | | no event shall a participant have the option of |
18 | | receiving these amounts in cash. Participants may make
|
19 | | additional contributions to the
self-managed plan in |
20 | | accordance with procedures prescribed by the System, |
21 | | to
the extent permitted under rules adopted by the |
22 | | System.
|
23 | | (2) The program shall provide for employer and State |
24 | | contributions to the self-managed plan in the following |
25 | | amounts: (i) for a member who does not file an election |
26 | | under subsection (e) of this Section, 3% of the amount of |
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1 | | earnings in excess of the limit specified in Section |
2 | | 15-112.1 for that year, to be paid by the actual employer, |
3 | | and (ii) for a member who files an election under |
4 | | subsection (e) of this Section, 7.1% of any amount of |
5 | | earnings up to and including the limit specified in Section |
6 | | 15-112.1 for that year, to be paid by the State, and 3% of |
7 | | any amount of earnings in excess of that limit for that |
8 | | year, to be paid by the actual employer.
|
9 | | The program shall provide for these employer and State |
10 | | contributions to be credited to each
self-managed plan |
11 | | participant at a rate of 7.6%
of the participating |
12 | | employee's salary , less the amount used by
the System to |
13 | | provide disability benefits for the employee.
The amounts |
14 | | so credited
shall be paid into the participant's |
15 | | self-managed plan accounts in a manner
to be prescribed by |
16 | | the System.
|
17 | | (3) An amount of employer contribution, not exceeding |
18 | | 1% of the participating
employee's salary, shall be used |
19 | | for the purpose of providing the disability
benefits of the |
20 | | System to the employee. Prior to the beginning of each plan
|
21 | | year under the self-managed plan, the Board of Trustees |
22 | | shall determine, as a
percentage of salary, the amount of |
23 | | employer contributions to be allocated
during that plan |
24 | | year for providing disability benefits for employees in the
|
25 | | self-managed plan.
|
26 | | (4) The State of Illinois shall make contributions by |
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1 | | appropriations to the
System of the employer contributions |
2 | | required for employees who participate in
the self-managed |
3 | | plan under this Section.
The amount required shall
be |
4 | | certified by the Board of Trustees of the System and paid |
5 | | by the State in
accordance with Section 15-165. The System |
6 | | shall not be obligated to remit the
required employer |
7 | | contributions to any of the insurance and annuity
|
8 | | companies, mutual fund
companies, banks, trust companies, |
9 | | financial institutions, or other sponsors
of any of the |
10 | | funding vehicles offered under the self-managed plan
until |
11 | | it has received the required employer contributions from |
12 | | the State. In
the event of a deficiency in the amount of |
13 | | State contributions, the System
shall implement those |
14 | | procedures described in subsection (c) of Section 15-165
to |
15 | | obtain the required funding from the General Revenue
Fund.
|
16 | | (i) Termination. The self-managed plan authorized under |
17 | | this
Section may be terminated by the System, subject to the |
18 | | terms
of any relevant
contracts, and the System shall have no |
19 | | obligation to
reestablish the self-managed plan under this |
20 | | Section. This Section does not
create a right
to continued |
21 | | participation in any self-managed plan set up by the System |
22 | | under
this Section. If the self-managed plan is terminated,
the |
23 | | participants shall have the right to participate in one of the |
24 | | other
retirement programs offered by the System and receive |
25 | | service credit in such
other retirement program for any years |
26 | | of employment following the termination.
|
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1 | | (j) Vesting; Withdrawal; Return to Service. A participant |
2 | | in the
self-managed plan becomes vested in the employer |
3 | | contributions credited to his
or her accounts in the |
4 | | self-managed plan on the earliest to occur of the
following: |
5 | | (1) completion of 5 years of service with an employer described |
6 | | in
Section 15-106; (2) the death of the participating employee |
7 | | while employed by
an employer described in Section 15-106, if |
8 | | the participant has completed at
least 1 1/2 years of service; |
9 | | or (3) the participant's election to retire and
apply the |
10 | | reciprocal provisions of Article 20 of this Code.
|
11 | | A participant in the self-managed plan who receives a |
12 | | distribution of his or
her vested amounts from the self-managed |
13 | | plan
while not yet eligible for retirement under this Article
|
14 | | (and Article 20, if applicable) shall forfeit all service |
15 | | credit
and accrued rights in the System; if subsequently |
16 | | re-employed, the participant
shall be considered a new
|
17 | | employee. If a former participant again becomes a participating |
18 | | employee (or
becomes employed by a participating system under |
19 | | Article 20 of this Code) and
continues as such for at least 2 |
20 | | years, all such rights, service credits, and
previous status as |
21 | | a participant shall be restored upon repayment of the amount
of |
22 | | the distribution, without interest.
|
23 | | (k) Benefit amounts. If an employee who is vested in |
24 | | employer
contributions terminates employment, the employee |
25 | | shall be entitled to a
benefit which is based on the
account |
26 | | values attributable to both employer and
employee |
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1 | | contributions and any
investment return thereon.
|
2 | | If an employee who is not vested in employer contributions |
3 | | terminates
employment, the employee shall be entitled to a |
4 | | benefit based solely on the
account values attributable to the |
5 | | employee's contributions and any investment
return thereon, |
6 | | and the employer contributions and any investment return
|
7 | | thereon shall be forfeited. Any employer contributions which |
8 | | are forfeited
shall be held in escrow by the
company investing |
9 | | those contributions and shall be used as directed by the
System |
10 | | for future allocations of employer contributions or for the |
11 | | restoration
of amounts previously forfeited by former |
12 | | participants who again become
participating employees.
|
13 | | (Source: P.A. 93-347, eff. 7-24-03.)
|
14 | | (40 ILCS 5/15-159.1 new)
|
15 | | Sec. 15-159.1. New Board created.
|
16 | | (a) Beginning July 1, 2014, the Board created under Section |
17 | | 15-159 is abolished and a board of 8 members shall
constitute |
18 | | the Board of Trustees authorized to carry out the provisions of
|
19 | | this Article. Each trustee shall be a participating employee of |
20 | | a
participating employer or an annuitant
of the Fund and no |
21 | | person shall be eligible to become a trustee after January
1, |
22 | | 1979 who does not have at least 8 years of creditable service.
|
23 | | (b) The board shall consist of representatives of various |
24 | | groups as
follows:
|
25 | | (1) Four trustees shall be a chief executive officer, |
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1 | | chief finance
officer, or other officer, executive or |
2 | | department head of a
participating employer, and each
such |
3 | | trustee shall be designated as an executive trustee.
|
4 | | (2) Three trustees shall be employees of a |
5 | | participating employer and each such trustee shall be |
6 | | designated
as an employee trustee.
|
7 | | (3) One trustee shall be an annuitant of the Fund, who |
8 | | shall be
designated the annuitant trustee.
|
9 | | (c) A person elected as a trustee shall qualify as a |
10 | | trustee, after
declaration by the Board that he has been duly |
11 | | elected, upon taking and
subscribing to the constitutional oath |
12 | | of office and filing same in the
office of the Fund.
|
13 | | (d) The term of office of each trustee shall begin upon |
14 | | January 1 of
the year following the year in which he is elected |
15 | | and shall continue
for a period of 5 years and until a |
16 | | successor has been elected and
qualified, or until prior |
17 | | resignation, death, incapacity or
disqualification.
|
18 | | (e) Any elected trustee (other than the annuitant trustee) |
19 | | shall be
disqualified immediately upon termination of |
20 | | employment with all participating
municipalities and |
21 | | instrumentalities thereof or upon any change in status which
|
22 | | removes any such trustee from all employments within the group |
23 | | he represents.
The annuitant trustee shall be disqualified upon |
24 | | termination of his or her
annuity.
|
25 | | (f) The trustees shall fill any vacancy in the Board by |
26 | | appointment,
for the period until the next election of |
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1 | | trustees, or, if the remaining
term is less than 2 years, for |
2 | | the remainder of the term, and until his
successor has been |
3 | | elected and qualified.
|
4 | | (g) Trustees shall serve without compensation, but shall be
|
5 | | reimbursed for any reasonable expenses incurred in attending |
6 | | meetings of
the Board and in performing duties on behalf of the |
7 | | Fund and for the
amount of any earnings withheld by any |
8 | | participating employer because of attendance at any Board
|
9 | | meeting.
|
10 | | (h) Each trustee shall be entitled to
one vote on any and |
11 | | all actions before the Board. At least 5 concurring votes
shall |
12 | | be necessary for every decision or action by the Board at any |
13 | | of its
meetings. No decision or action shall become effective |
14 | | unless presented and so
approved at a regular or duly called |
15 | | special meeting of the Board.
|
16 | | (40 ILCS 5/15-165.1 new) |
17 | | Sec. 15-165.1. To calculate the normal cost of benefits. To |
18 | | calculate the normal cost of each plan offered by the system as |
19 | | a percentage of earnings and to update those amounts at least |
20 | | every 3 years.
|
21 | | (40 ILCS 5/16-101) (from Ch. 108 1/2, par. 16-101)
|
22 | | Sec. 16-101. Creation of system ; consolidation . |
23 | | (a) Effective July 1, 1939 and until July 1, 2013 ,
there is |
24 | | created the "Teachers' Retirement System of the State of
|
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1 | | Illinois" for the purpose of providing retirement annuities and |
2 | | other
benefits for teachers, annuitants and beneficiaries. All |
3 | | of its business
shall be transacted, its funds invested, and |
4 | | its assets held in such name.
|
5 | | (b) On July 1, 2013, the retirement system established |
6 | | under this Article is merged and consolidated into a single |
7 | | retirement fund, to be known as the Illinois Teachers' |
8 | | Retirement Fund, which shall be established and administered as |
9 | | prescribed in Article 15 of this Code. |
10 | | (c) In preparation for that consolidation, the Board of |
11 | | Education and the City shall cooperate with the Board of |
12 | | Trustees of the Illinois Teachers' Retirement Fund. |
13 | | (d) At the time of consolidation, or as otherwise directed |
14 | | by the Board of the Illinois Teachers' Retirement Fund, all |
15 | | assets and liabilities belonging to the System established |
16 | | under this Article shall become the assets and liabilities of |
17 | | the Illinois Teachers' Retirement Fund, and all current or |
18 | | former members and beneficiaries of the System established |
19 | | under this Article shall be deemed current or former |
20 | | participants and beneficiaries of the Illinois Teachers' |
21 | | Retirement Fund. |
22 | | (e) The Illinois Teachers' Retirement Fund shall be the |
23 | | legal successor to the System established under this Article |
24 | | and it may exercise any of the rights and powers and perform |
25 | | any of the duties of that System. The Illinois Teachers' |
26 | | Retirement Fund may, in its discretion, either continue, |
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1 | | renegotiate, or terminate any personnel, service contract, |
2 | | lease, or other contract of the System established under this |
3 | | Article. |
4 | | (f) The consolidation of the System established under this |
5 | | Article shall not diminish or impair the benefits of any person |
6 | | who participated in that System, or of any such person's |
7 | | surviving spouse,
children, or other dependents. |
8 | | Benefits already payable by the System on June 30, 2013 |
9 | | shall become payable from the Illinois Teachers' Retirement |
10 | | Fund beginning on July 1, 2013, and shall not be subject to |
11 | | recalculation or combination due to the consolidation. |
12 | | Benefits that first become payable on or after July 1, 2013 |
13 | | shall be calculated and paid as provided in Article 15. |
14 | | The consolidation of the System established under this |
15 | | Article does not entitle any person to a recalculation of any |
16 | | benefit previously granted or a refund of any contribution |
17 | | previously paid. |
18 | | (Source: P.A. 83-1440.)
|
19 | | (40 ILCS 5/17-101) (from Ch. 108 1/2, par. 17-101)
|
20 | | Sec. 17-101. Creation of fund ; consolidation .
|
21 | | Until July 1, 2013, in In each city with a population over |
22 | | 500,000, there is created a Public
School Teachers' Pension and |
23 | | Retirement Fund to be maintained and
administered in the manner |
24 | | prescribed in this Article and to be known as
the Public School |
25 | | Teachers' Pension and Retirement Fund of ....(city).
|
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1 | | (b) On July 1, 2013, the Fund established under this |
2 | | Article is merged and consolidated into a single retirement |
3 | | fund, to be known as the Illinois Teachers' Retirement Fund, |
4 | | which shall be established and administered as prescribed in |
5 | | Article 15 of this Code. |
6 | | (c) In preparation for that consolidation, the Board of |
7 | | Education and the City shall cooperate with the Board of |
8 | | Trustees of the Illinois Teachers' Retirement Fund. |
9 | | (d) At the time of consolidation, or as otherwise directed |
10 | | by the Board of the Illinois Teachers' Retirement Fund, all |
11 | | assets and liabilities belonging to the Fund established under |
12 | | this Article shall become the assets and liabilities of the |
13 | | Illinois Teachers' Retirement Fund, and all current or former |
14 | | members and beneficiaries of the Fund established under this |
15 | | Article shall be deemed current or former participants and |
16 | | beneficiaries of the Illinois Teachers' Retirement Fund. |
17 | | (e) The Illinois Teachers' Retirement Fund shall be the |
18 | | legal successor to the Fund established under this Article and |
19 | | it may exercise any of the rights and powers and perform any of |
20 | | the duties of that pension fund. The Illinois Teachers' |
21 | | Retirement Fund may, in its discretion, either continue, |
22 | | renegotiate, or terminate any personnel, service contract, |
23 | | lease, or other contract of the Fund established under this |
24 | | Article. |
25 | | (f) The consolidation of the pension fund established under |
26 | | this Article shall not diminish or impair the benefits of any |
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1 | | person who participated in that pension fund, or of any such |
2 | | person's surviving spouse,
children, or other dependents. |
3 | | Benefits already payable by this Fund on June 30, 2013 |
4 | | shall become payable from the Illinois Teachers' Retirement |
5 | | Fund beginning on July 1, 2013, and shall not be subject to |
6 | | recalculation or combination due to the consolidation. |
7 | | Benefits that first become payable on or after July 1, 2013 |
8 | | shall be calculated as provided in Article 15. |
9 | | The consolidation of the pension fund established under |
10 | | this Article does not entitle any person to a recalculation of |
11 | | any benefit previously granted or a refund of any contribution |
12 | | previously paid. |
13 | | (Source: Laws 1963, p. 161.)
|
14 | | Section 90. The State Mandates Act is amended by adding |
15 | | Section 8.37 as follows: |
16 | | (30 ILCS 805/8.37 new) |
17 | | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 |
18 | | of this Act, no reimbursement by the State is required for the |
19 | | implementation of any mandate created by this amendatory Act of |
20 | | the 98th General Assembly. |
21 | | Section 97. Inseverability. The provisions of this Act are |
22 | | inseverable.
|