101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2858

 

Introduced , by Rep. Avery Bourne

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-158  from Ch. 108 1/2, par. 16-158

    Amends the Downstate Teachers Article of the Illinois Pension Code. In a provision that requires an employer to make an additional contribution to the System for certain salary increases greater than 3%, excludes salary increases resulting from overload work or a promotion if certain requirements are met, from duties as a coach or advisor to an extracurricular activity, from the teacher earning additional higher education credits or a degree, or from substitute teaching. Makes conforming changes. Effective immediately.


LRB101 07951 RPS 53006 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2858LRB101 07951 RPS 53006 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 16-158 as follows:
 
6    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
7    Sec. 16-158. Contributions by State and other employing
8units.
9    (a) The State shall make contributions to the System by
10means of appropriations from the Common School Fund and other
11State funds of amounts which, together with other employer
12contributions, employee contributions, investment income, and
13other income, will be sufficient to meet the cost of
14maintaining and administering the System on a 90% funded basis
15in accordance with actuarial recommendations.
16    The Board shall determine the amount of State contributions
17required for each fiscal year on the basis of the actuarial
18tables and other assumptions adopted by the Board and the
19recommendations of the actuary, using the formula in subsection
20(b-3).
21    (a-1) Annually, on or before November 15 until November 15,
222011, the Board shall certify to the Governor the amount of the
23required State contribution for the coming fiscal year. The

 

 

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1certification under this subsection (a-1) shall include a copy
2of the actuarial recommendations upon which it is based and
3shall specifically identify the System's projected State
4normal cost for that fiscal year.
5    On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11    On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by Public Act 94-4.
16    On or before April 1, 2011, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2011, applying
19the changes made by Public Act 96-889 to the System's assets
20and liabilities as of June 30, 2009 as though Public Act 96-889
21was approved on that date.
22    (a-5) On or before November 1 of each year, beginning
23November 1, 2012, the Board shall submit to the State Actuary,
24the Governor, and the General Assembly a proposed certification
25of the amount of the required State contribution to the System
26for the next fiscal year, along with all of the actuarial

 

 

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1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year,
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions. On or before
8January 15, 2013 and each January 15 thereafter, the Board
9shall certify to the Governor and the General Assembly the
10amount of the required State contribution for the next fiscal
11year. The Board's certification must note any deviations from
12the State Actuary's recommended changes, the reason or reasons
13for not following the State Actuary's recommended changes, and
14the fiscal impact of not following the State Actuary's
15recommended changes on the required State contribution.
16    (a-10) By November 1, 2017, the Board shall recalculate and
17recertify to the State Actuary, the Governor, and the General
18Assembly the amount of the State contribution to the System for
19State fiscal year 2018, taking into account the changes in
20required State contributions made by Public Act 100-23. The
21State Actuary shall review the assumptions and valuations
22underlying the Board's revised certification and issue a
23preliminary report concerning the proposed recertification and
24identifying, if necessary, recommended changes in actuarial
25assumptions that the Board must consider before finalizing its
26certification of the required State contributions. The Board's

 

 

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1final certification must note any deviations from the State
2Actuary's recommended changes, the reason or reasons for not
3following the State Actuary's recommended changes, and the
4fiscal impact of not following the State Actuary's recommended
5changes on the required State contribution.
6    (a-15) On or after June 15, 2019, but no later than June
730, 2019, the Board shall recalculate and recertify to the
8Governor and the General Assembly the amount of the State
9contribution to the System for State fiscal year 2019, taking
10into account the changes in required State contributions made
11by Public Act 100-587 this amendatory Act of the 100th General
12Assembly. The recalculation shall be made using assumptions
13adopted by the Board for the original fiscal year 2019
14certification. The monthly voucher for the 12th month of fiscal
15year 2019 shall be paid by the Comptroller after the
16recertification required pursuant to this subsection is
17submitted to the Governor, Comptroller, and General Assembly.
18The recertification submitted to the General Assembly shall be
19filed with the Clerk of the House of Representatives and the
20Secretary of the Senate in electronic form only, in the manner
21that the Clerk and the Secretary shall direct.
22    (b) Through State fiscal year 1995, the State contributions
23shall be paid to the System in accordance with Section 18-7 of
24the School Code.
25    (b-1) Beginning in State fiscal year 1996, on the 15th day
26of each month, or as soon thereafter as may be practicable, the

 

 

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1Board shall submit vouchers for payment of State contributions
2to the System, in a total monthly amount of one-twelfth of the
3required annual State contribution certified under subsection
4(a-1). From March 5, 2004 (the effective date of Public Act
593-665) through June 30, 2004, the Board shall not submit
6vouchers for the remainder of fiscal year 2004 in excess of the
7fiscal year 2004 certified contribution amount determined
8under this Section after taking into consideration the transfer
9to the System under subsection (a) of Section 6z-61 of the
10State Finance Act. These vouchers shall be paid by the State
11Comptroller and Treasurer by warrants drawn on the funds
12appropriated to the System for that fiscal year.
13    If in any month the amount remaining unexpended from all
14other appropriations to the System for the applicable fiscal
15year (including the appropriations to the System under Section
168.12 of the State Finance Act and Section 1 of the State
17Pension Funds Continuing Appropriation Act) is less than the
18amount lawfully vouchered under this subsection, the
19difference shall be paid from the Common School Fund under the
20continuing appropriation authority provided in Section 1.1 of
21the State Pension Funds Continuing Appropriation Act.
22    (b-2) Allocations from the Common School Fund apportioned
23to school districts not coming under this System shall not be
24diminished or affected by the provisions of this Article.
25    (b-3) For State fiscal years 2012 through 2045, the minimum
26contribution to the System to be made by the State for each

 

 

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1fiscal year shall be an amount determined by the System to be
2sufficient to bring the total assets of the System up to 90% of
3the total actuarial liabilities of the System by the end of
4State fiscal year 2045. In making these determinations, the
5required State contribution shall be calculated each year as a
6level percentage of payroll over the years remaining to and
7including fiscal year 2045 and shall be determined under the
8projected unit credit actuarial cost method.
9    For each of State fiscal years 2018, 2019, and 2020, the
10State shall make an additional contribution to the System equal
11to 2% of the total payroll of each employee who is deemed to
12have elected the benefits under Section 1-161 or who has made
13the election under subsection (c) of Section 1-161.
14    A change in an actuarial or investment assumption that
15increases or decreases the required State contribution and
16first applies in State fiscal year 2018 or thereafter shall be
17implemented in equal annual amounts over a 5-year period
18beginning in the State fiscal year in which the actuarial
19change first applies to the required State contribution.
20    A change in an actuarial or investment assumption that
21increases or decreases the required State contribution and
22first applied to the State contribution in fiscal year 2014,
232015, 2016, or 2017 shall be implemented:
24        (i) as already applied in State fiscal years before
25    2018; and
26        (ii) in the portion of the 5-year period beginning in

 

 

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1    the State fiscal year in which the actuarial change first
2    applied that occurs in State fiscal year 2018 or
3    thereafter, by calculating the change in equal annual
4    amounts over that 5-year period and then implementing it at
5    the resulting annual rate in each of the remaining fiscal
6    years in that 5-year period.
7    For State fiscal years 1996 through 2005, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10so that by State fiscal year 2011, the State is contributing at
11the rate required under this Section; except that in the
12following specified State fiscal years, the State contribution
13to the System shall not be less than the following indicated
14percentages of the applicable employee payroll, even if the
15indicated percentage will produce a State contribution in
16excess of the amount otherwise required under this subsection
17and subsection (a), and notwithstanding any contrary
18certification made under subsection (a-1) before May 27, 1998
19(the effective date of Public Act 90-582): 10.02% in FY 1999;
2010.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
21in FY 2003; and 13.56% in FY 2004.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006 is
24$534,627,700.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007 is

 

 

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1$738,014,500.
2    For each of State fiscal years 2008 through 2009, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5from the required State contribution for State fiscal year
62007, so that by State fiscal year 2011, the State is
7contributing at the rate otherwise required under this Section.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2010 is
10$2,089,268,000 and shall be made from the proceeds of bonds
11sold in fiscal year 2010 pursuant to Section 7.2 of the General
12Obligation Bond Act, less (i) the pro rata share of bond sale
13expenses determined by the System's share of total bond
14proceeds, (ii) any amounts received from the Common School Fund
15in fiscal year 2010, and (iii) any reduction in bond proceeds
16due to the issuance of discounted bonds, if applicable.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2011 is
19the amount recertified by the System on or before April 1, 2011
20pursuant to subsection (a-1) of this Section and shall be made
21from the proceeds of bonds sold in fiscal year 2011 pursuant to
22Section 7.2 of the General Obligation Bond Act, less (i) the
23pro rata share of bond sale expenses determined by the System's
24share of total bond proceeds, (ii) any amounts received from
25the Common School Fund in fiscal year 2011, and (iii) any
26reduction in bond proceeds due to the issuance of discounted

 

 

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1bonds, if applicable. This amount shall include, in addition to
2the amount certified by the System, an amount necessary to meet
3employer contributions required by the State as an employer
4under paragraph (e) of this Section, which may also be used by
5the System for contributions required by paragraph (a) of
6Section 16-127.
7    Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11    Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 90%. A reference in this Article to
20the "required State contribution" or any substantially similar
21term does not include or apply to any amounts payable to the
22System under Section 25 of the Budget Stabilization Act.
23    Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter, as calculated
26under this Section and certified under subsection (a-1), shall

 

 

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1not exceed an amount equal to (i) the amount of the required
2State contribution that would have been calculated under this
3Section for that fiscal year if the System had not received any
4payments under subsection (d) of Section 7.2 of the General
5Obligation Bond Act, minus (ii) the portion of the State's
6total debt service payments for that fiscal year on the bonds
7issued in fiscal year 2003 for the purposes of that Section
87.2, as determined and certified by the Comptroller, that is
9the same as the System's portion of the total moneys
10distributed under subsection (d) of Section 7.2 of the General
11Obligation Bond Act. In determining this maximum for State
12fiscal years 2008 through 2010, however, the amount referred to
13in item (i) shall be increased, as a percentage of the
14applicable employee payroll, in equal increments calculated
15from the sum of the required State contribution for State
16fiscal year 2007 plus the applicable portion of the State's
17total debt service payments for fiscal year 2007 on the bonds
18issued in fiscal year 2003 for the purposes of Section 7.2 of
19the General Obligation Bond Act, so that, by State fiscal year
202011, the State is contributing at the rate otherwise required
21under this Section.
22    (b-4) Beginning in fiscal year 2018, each employer under
23this Article shall pay to the System a required contribution
24determined as a percentage of projected payroll and sufficient
25to produce an annual amount equal to:
26        (i) for each of fiscal years 2018, 2019, and 2020, the

 

 

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1    defined benefit normal cost of the defined benefit plan,
2    less the employee contribution, for each employee of that
3    employer who has elected or who is deemed to have elected
4    the benefits under Section 1-161 or who has made the
5    election under subsection (b) of Section 1-161; for fiscal
6    year 2021 and each fiscal year thereafter, the defined
7    benefit normal cost of the defined benefit plan, less the
8    employee contribution, plus 2%, for each employee of that
9    employer who has elected or who is deemed to have elected
10    the benefits under Section 1-161 or who has made the
11    election under subsection (b) of Section 1-161; plus
12        (ii) the amount required for that fiscal year to
13    amortize any unfunded actuarial accrued liability
14    associated with the present value of liabilities
15    attributable to the employer's account under Section
16    16-158.3, determined as a level percentage of payroll over
17    a 30-year rolling amortization period.
18    In determining contributions required under item (i) of
19this subsection, the System shall determine an aggregate rate
20for all employers, expressed as a percentage of projected
21payroll.
22    In determining the contributions required under item (ii)
23of this subsection, the amount shall be computed by the System
24on the basis of the actuarial assumptions and tables used in
25the most recent actuarial valuation of the System that is
26available at the time of the computation.

 

 

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1    The contributions required under this subsection (b-4)
2shall be paid by an employer concurrently with that employer's
3payroll payment period. The State, as the actual employer of an
4employee, shall make the required contributions under this
5subsection.
6    (c) Payment of the required State contributions and of all
7pensions, retirement annuities, death benefits, refunds, and
8other benefits granted under or assumed by this System, and all
9expenses in connection with the administration and operation
10thereof, are obligations of the State.
11    If members are paid from special trust or federal funds
12which are administered by the employing unit, whether school
13district or other unit, the employing unit shall pay to the
14System from such funds the full accruing retirement costs based
15upon that service, which, beginning July 1, 2017, shall be at a
16rate, expressed as a percentage of salary, equal to the total
17employer's normal cost, expressed as a percentage of payroll,
18as determined by the System. Employer contributions, based on
19salary paid to members from federal funds, may be forwarded by
20the distributing agency of the State of Illinois to the System
21prior to allocation, in an amount determined in accordance with
22guidelines established by such agency and the System. Any
23contribution for fiscal year 2015 collected as a result of the
24change made by Public Act 98-674 shall be considered a State
25contribution under subsection (b-3) of this Section.
26    (d) Effective July 1, 1986, any employer of a teacher as

 

 

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1defined in paragraph (8) of Section 16-106 shall pay the
2employer's normal cost of benefits based upon the teacher's
3service, in addition to employee contributions, as determined
4by the System. Such employer contributions shall be forwarded
5monthly in accordance with guidelines established by the
6System.
7    However, with respect to benefits granted under Section
816-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
9of Section 16-106, the employer's contribution shall be 12%
10(rather than 20%) of the member's highest annual salary rate
11for each year of creditable service granted, and the employer
12shall also pay the required employee contribution on behalf of
13the teacher. For the purposes of Sections 16-133.4 and
1416-133.5, a teacher as defined in paragraph (8) of Section
1516-106 who is serving in that capacity while on leave of
16absence from another employer under this Article shall not be
17considered an employee of the employer from which the teacher
18is on leave.
19    (e) Beginning July 1, 1998, every employer of a teacher
20shall pay to the System an employer contribution computed as
21follows:
22        (1) Beginning July 1, 1998 through June 30, 1999, the
23    employer contribution shall be equal to 0.3% of each
24    teacher's salary.
25        (2) Beginning July 1, 1999 and thereafter, the employer
26    contribution shall be equal to 0.58% of each teacher's

 

 

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1    salary.
2The school district or other employing unit may pay these
3employer contributions out of any source of funding available
4for that purpose and shall forward the contributions to the
5System on the schedule established for the payment of member
6contributions.
7    These employer contributions are intended to offset a
8portion of the cost to the System of the increases in
9retirement benefits resulting from Public Act 90-582.
10    Each employer of teachers is entitled to a credit against
11the contributions required under this subsection (e) with
12respect to salaries paid to teachers for the period January 1,
132002 through June 30, 2003, equal to the amount paid by that
14employer under subsection (a-5) of Section 6.6 of the State
15Employees Group Insurance Act of 1971 with respect to salaries
16paid to teachers for that period.
17    The additional 1% employee contribution required under
18Section 16-152 by Public Act 90-582 is the responsibility of
19the teacher and not the teacher's employer, unless the employer
20agrees, through collective bargaining or otherwise, to make the
21contribution on behalf of the teacher.
22    If an employer is required by a contract in effect on May
231, 1998 between the employer and an employee organization to
24pay, on behalf of all its full-time employees covered by this
25Article, all mandatory employee contributions required under
26this Article, then the employer shall be excused from paying

 

 

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1the employer contribution required under this subsection (e)
2for the balance of the term of that contract. The employer and
3the employee organization shall jointly certify to the System
4the existence of the contractual requirement, in such form as
5the System may prescribe. This exclusion shall cease upon the
6termination, extension, or renewal of the contract at any time
7after May 1, 1998.
8    (f) For school years beginning on or after June 1, 2005 and
9before July 1, 2018 and for salary paid to a teacher under a
10contract or collective bargaining agreement entered into,
11amended, or renewed before June 4, 2018 (the effective date of
12Public Act 100-587) this amendatory Act of the 100th General
13Assembly, if the amount of a teacher's salary for any school
14year used to determine final average salary exceeds the
15member's annual full-time salary rate with the same employer
16for the previous school year by more than 6%, the teacher's
17employer shall pay to the System, in addition to all other
18payments required under this Section and in accordance with
19guidelines established by the System, the present value of the
20increase in benefits resulting from the portion of the increase
21in salary that is in excess of 6%. This present value shall be
22computed by the System on the basis of the actuarial
23assumptions and tables used in the most recent actuarial
24valuation of the System that is available at the time of the
25computation. If a teacher's salary for the 2005-2006 school
26year is used to determine final average salary under this

 

 

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1subsection (f), then the changes made to this subsection (f) by
2Public Act 94-1057 shall apply in calculating whether the
3increase in his or her salary is in excess of 6%. For the
4purposes of this Section, change in employment under Section
510-21.12 of the School Code on or after June 1, 2005 shall
6constitute a change in employer. The System may require the
7employer to provide any pertinent information or
8documentation. The changes made to this subsection (f) by
9Public Act 94-1111 apply without regard to whether the teacher
10was in service on or after its effective date.
11    Whenever it determines that a payment is or may be required
12under this subsection, the System shall calculate the amount of
13the payment and bill the employer for that amount. The bill
14shall specify the calculations used to determine the amount
15due. If the employer disputes the amount of the bill, it may,
16within 30 days after receipt of the bill, apply to the System
17in writing for a recalculation. The application must specify in
18detail the grounds of the dispute and, if the employer asserts
19that the calculation is subject to subsection (g) or (h) of
20this Section or that subsection (f-1) of this Section applies,
21must include an affidavit setting forth and attesting to all
22facts within the employer's knowledge that are pertinent to the
23applicability of that subsection. Upon receiving a timely
24application for recalculation, the System shall review the
25application and, if appropriate, recalculate the amount due.
26    The employer contributions required under this subsection

 

 

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1(f) may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9    (f-1) For school years beginning on or after July 1, 2018
10and for salary paid to a teacher under a contract or collective
11bargaining agreement entered into, amended, or renewed on or
12after June 4, 2018 (the effective date of Public Act 100-587)
13this amendatory Act of the 100th General Assembly, if the
14amount of a teacher's salary for any school year used to
15determine final average salary exceeds the member's annual
16full-time salary rate with the same employer for the previous
17school year by more than 3%, then the teacher's employer shall
18pay to the System, in addition to all other payments required
19under this Section and in accordance with guidelines
20established by the System, the present value of the increase in
21benefits resulting from the portion of the increase in salary
22that is in excess of 3%. This present value shall be computed
23by the System on the basis of the actuarial assumptions and
24tables used in the most recent actuarial valuation of the
25System that is available at the time of the computation. The
26System may require the employer to provide any pertinent

 

 

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1information or documentation.
2    Whenever it determines that a payment is or may be required
3under this subsection (f-1), the System shall calculate the
4amount of the payment and bill the employer for that amount.
5The bill shall specify the calculations used to determine the
6amount due. If the employer disputes the amount of the bill, it
7shall, within 30 days after receipt of the bill, apply to the
8System in writing for a recalculation. The application must
9specify in detail the grounds of the dispute and, if the
10employer asserts that subsection (f) or (g-1) of this Section
11applies, must include an affidavit setting forth and attesting
12to all facts within the employer's knowledge that are pertinent
13to the applicability of that subsection (f). Upon receiving a
14timely application for recalculation, the System shall review
15the application and, if appropriate, recalculate the amount
16due.
17    The employer contributions required under this subsection
18(f-1) may be paid in the form of a lump sum within 90 days after
19receipt of the bill. If the employer contributions are not paid
20within 90 days after receipt of the bill, then interest shall
21be charged at a rate equal to the System's annual actuarially
22assumed rate of return on investment compounded annually from
23the 91st day after receipt of the bill. Payments must be
24concluded within 3 years after the employer's receipt of the
25bill.
26    (g) This subsection (g) applies only to payments made or

 

 

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1salary increases given on or after June 1, 2005 but before July
21, 2011. The changes made by Public Act 94-1057 shall not
3require the System to refund any payments received before July
431, 2006 (the effective date of Public Act 94-1057).
5    When assessing payment for any amount due under subsection
6(f), the System shall exclude salary increases paid to teachers
7under contracts or collective bargaining agreements entered
8into, amended, or renewed before June 1, 2005.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude salary increases paid to a
11teacher at a time when the teacher is 10 or more years from
12retirement eligibility under Section 16-132 or 16-133.2.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude salary increases resulting from
15overload work, including summer school, when the school
16district has certified to the System, and the System has
17approved the certification, that (i) the overload work is for
18the sole purpose of classroom instruction in excess of the
19standard number of classes for a full-time teacher in a school
20district during a school year and (ii) the salary increases are
21equal to or less than the rate of pay for classroom instruction
22computed on the teacher's current salary and work schedule.
23    When assessing payment for any amount due under subsection
24(f), the System shall exclude a salary increase resulting from
25a promotion (i) for which the employee is required to hold a
26certificate or supervisory endorsement issued by the State

 

 

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1Teacher Certification Board that is a different certification
2or supervisory endorsement than is required for the teacher's
3previous position and (ii) to a position that has existed and
4been filled by a member for no less than one complete academic
5year and the salary increase from the promotion is an increase
6that results in an amount no greater than the lesser of the
7average salary paid for other similar positions in the district
8requiring the same certification or the amount stipulated in
9the collective bargaining agreement for a similar position
10requiring the same certification.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude any payment to the teacher from
13the State of Illinois or the State Board of Education over
14which the employer does not have discretion, notwithstanding
15that the payment is included in the computation of final
16average salary.
17    (g-1) When assessing payment for any amount due under
18subsection (f-1), the System shall exclude salary increases
19resulting from overload work, including summer school, when the
20school district has certified to the System, and the System has
21approved the certification, that (i) the overload work is for
22the sole purpose of classroom instruction in excess of the
23standard number of classes for a full-time teacher in a school
24district during a school year and (ii) the salary increases are
25equal to or less than the rate of pay for classroom instruction
26computed on the teacher's current salary and work schedule.

 

 

HB2858- 21 -LRB101 07951 RPS 53006 b

1    When assessing payment for any amount due under subsection
2(f-1), the System shall exclude salary increases resulting from
3duties as a coach or advisor for an extracurricular activity.
4    When assessing payment for any amount due under subsection
5(f-1), the System shall exclude salary increases resulting from
6the teacher earning additional higher education credits or
7degrees.
8    When assessing payment for any amount due under subsection
9(f-1), the System shall exclude salary increases resulting from
10substitute teaching.
11    When assessing payment for any amount due under subsection
12(f-1), the System shall exclude a salary increase resulting
13from a promotion (i) for which the employee is required to hold
14a license or supervisory endorsement issued by the State
15Educator Preparation and Licensure Board that is a different
16licensure or supervisory endorsement than is required for the
17teacher's previous position and (ii) to a position that has
18existed and been filled by a member for no less than one
19complete academic year and the salary increase from the
20promotion is an increase that results in an amount no greater
21than the lesser of the average salary paid for other similar
22positions in the district requiring the same licensure or the
23amount stipulated in the collective bargaining agreement for a
24similar position requiring the same licensure.
25    (h) When assessing payment for any amount due under
26subsection (f), the System shall exclude any salary increase

 

 

HB2858- 22 -LRB101 07951 RPS 53006 b

1described in subsection (g) of this Section given on or after
2July 1, 2011 but before July 1, 2014 under a contract or
3collective bargaining agreement entered into, amended, or
4renewed on or after June 1, 2005 but before July 1, 2011.
5Notwithstanding any other provision of this Section, any
6payments made or salary increases given after June 30, 2014
7shall be used in assessing payment for any amount due under
8subsection (f) of this Section.
9    (i) The System shall prepare a report and file copies of
10the report with the Governor and the General Assembly by
11January 1, 2007 that contains all of the following information:
12        (1) The number of recalculations required by the
13    changes made to this Section by Public Act 94-1057 for each
14    employer.
15        (2) The dollar amount by which each employer's
16    contribution to the System was changed due to
17    recalculations required by Public Act 94-1057.
18        (3) The total amount the System received from each
19    employer as a result of the changes made to this Section by
20    Public Act 94-4.
21        (4) The increase in the required State contribution
22    resulting from the changes made to this Section by Public
23    Act 94-1057.
24    (i-5) For school years beginning on or after July 1, 2017,
25if the amount of a participant's salary for any school year
26exceeds the amount of the salary set for the Governor, the

 

 

HB2858- 23 -LRB101 07951 RPS 53006 b

1participant's employer shall pay to the System, in addition to
2all other payments required under this Section and in
3accordance with guidelines established by the System, an amount
4determined by the System to be equal to the employer normal
5cost, as established by the System and expressed as a total
6percentage of payroll, multiplied by the amount of salary in
7excess of the amount of the salary set for the Governor. This
8amount shall be computed by the System on the basis of the
9actuarial assumptions and tables used in the most recent
10actuarial valuation of the System that is available at the time
11of the computation. The System may require the employer to
12provide any pertinent information or documentation.
13    Whenever it determines that a payment is or may be required
14under this subsection, the System shall calculate the amount of
15the payment and bill the employer for that amount. The bill
16shall specify the calculations used to determine the amount
17due. If the employer disputes the amount of the bill, it may,
18within 30 days after receipt of the bill, apply to the System
19in writing for a recalculation. The application must specify in
20detail the grounds of the dispute. Upon receiving a timely
21application for recalculation, the System shall review the
22application and, if appropriate, recalculate the amount due.
23    The employer contributions required under this subsection
24may be paid in the form of a lump sum within 90 days after
25receipt of the bill. If the employer contributions are not paid
26within 90 days after receipt of the bill, then interest will be

 

 

HB2858- 24 -LRB101 07951 RPS 53006 b

1charged at a rate equal to the System's annual actuarially
2assumed rate of return on investment compounded annually from
3the 91st day after receipt of the bill. Payments must be
4concluded within 3 years after the employer's receipt of the
5bill.
6    (j) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (k) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
22100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
238-14-18; revised 10-4-18.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.