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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by | |||||||||||||||||||
5 | changing Section 14-131 as follows:
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6 | (40 ILCS 5/14-131)
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7 | Sec. 14-131. Contributions by State.
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8 | (a) The
The State shall make contributions to the System | |||||||||||||||||||
9 | by appropriations of
amounts which, together with other | |||||||||||||||||||
10 | employer contributions from trust, federal,
and other funds, | |||||||||||||||||||
11 | employee contributions, investment income, and other income,
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12 | will be sufficient to meet the cost of maintaining and | |||||||||||||||||||
13 | administering the System
on a 90% funded basis in accordance | |||||||||||||||||||
14 | with actuarial recommendations. | |||||||||||||||||||
15 | For the purposes of this Section and Section 14-135.08, | |||||||||||||||||||
16 | references to State
contributions refer only to employer | |||||||||||||||||||
17 | contributions and do not include employee
contributions that | |||||||||||||||||||
18 | are picked up or otherwise paid by the State or a
department on | |||||||||||||||||||
19 | behalf of the employee.
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20 | (b) The Board shall determine the total amount of State | |||||||||||||||||||
21 | contributions
required for each fiscal year on the basis of | |||||||||||||||||||
22 | the actuarial tables and other
assumptions adopted by the | |||||||||||||||||||
23 | Board, using the formula in subsection (e).
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1 | The Board shall also determine a State contribution rate | ||||||
2 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
3 | based on the total required State
contribution for that fiscal | ||||||
4 | year (less the amount received by the System from
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5 | appropriations under Section 8.12 of the State Finance Act and | ||||||
6 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
7 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
8 | immediately preceding the applicable November 15
certification | ||||||
9 | deadline), the estimated payroll (including all forms of
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10 | compensation) for personal services rendered by eligible | ||||||
11 | employees, and the
recommendations of the actuary.
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12 | For the purposes of this Section and Section 14.1 of the | ||||||
13 | State Finance Act,
the term "eligible employees" includes | ||||||
14 | employees who participate in the System,
persons who may elect | ||||||
15 | to participate in the System but have not so elected,
persons | ||||||
16 | who are serving a qualifying period that is required for | ||||||
17 | participation,
and annuitants employed by a department as | ||||||
18 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
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19 | (c) Contributions shall be made by the several departments | ||||||
20 | for each pay
period by warrants drawn by the State Comptroller | ||||||
21 | against their respective
funds or appropriations based upon | ||||||
22 | vouchers stating the amount to be so
contributed. These | ||||||
23 | amounts shall be based on the full rate certified by the
Board | ||||||
24 | under Section 14-135.08 for that fiscal year.
From March 5, | ||||||
25 | 2004 (the effective date of Public Act 93-665) through the | ||||||
26 | payment of the final payroll from fiscal year 2004
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1 | appropriations, the several departments shall not make | ||||||
2 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
3 | instead make payments
as required under subsection (a-1) of | ||||||
4 | Section 14.1 of the State Finance Act.
The several departments | ||||||
5 | shall resume those contributions at the commencement of
fiscal | ||||||
6 | year 2005.
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7 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
8 | fiscal years 2010, 2012, and each fiscal year thereafter, | ||||||
9 | contributions by the several departments are not required to | ||||||
10 | be made for General Revenue Funds payrolls processed by the | ||||||
11 | Comptroller. Payrolls paid by the several departments from all | ||||||
12 | other State funds must continue to be processed pursuant to | ||||||
13 | subsection (c) of this Section. | ||||||
14 | (c-2) For State fiscal years 2010, 2012, and each fiscal | ||||||
15 | year thereafter, on or as soon as possible after the 15th day | ||||||
16 | of each month, the Board shall submit vouchers for payment of | ||||||
17 | State contributions to the System, in a total monthly amount | ||||||
18 | of one-twelfth of the fiscal year General Revenue Fund | ||||||
19 | contribution as certified by the System pursuant to Section | ||||||
20 | 14-135.08 of the Illinois Pension Code. | ||||||
21 | (d) If an employee is paid from trust funds or federal | ||||||
22 | funds, the
department or other employer shall pay employer | ||||||
23 | contributions from those funds
to the System at the certified | ||||||
24 | rate, unless the terms of the trust or the
federal-State | ||||||
25 | agreement preclude the use of the funds for that purpose, in
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26 | which case the required employer contributions shall be paid |
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1 | by the State.
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2 | (e) For State fiscal years 2012 through 2045, the minimum | ||||||
3 | contribution
to the System to be made by the State for each | ||||||
4 | fiscal year shall be an amount
determined by the System to be | ||||||
5 | sufficient to bring the total assets of the
System up to 90% of | ||||||
6 | the total actuarial liabilities of the System by the end
of | ||||||
7 | State fiscal year 2045. In making these determinations, the | ||||||
8 | required State
contribution shall be calculated each year as a | ||||||
9 | level percentage of payroll
over the years remaining to and | ||||||
10 | including fiscal year 2045 and shall be
determined under the | ||||||
11 | projected unit credit actuarial cost method.
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12 | A change in an actuarial or investment assumption that | ||||||
13 | increases or
decreases the required State contribution and | ||||||
14 | first
applies in State fiscal year 2018 or thereafter shall be
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15 | implemented in equal annual amounts over a 5-year period
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16 | beginning in the State fiscal year in which the actuarial
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17 | change first applies to the required State contribution. | ||||||
18 | A change in an actuarial or investment assumption that | ||||||
19 | increases or
decreases the required State contribution and | ||||||
20 | first
applied to the State contribution in fiscal year 2014, | ||||||
21 | 2015, 2016, or 2017 shall be
implemented: | ||||||
22 | (i) as already applied in State fiscal years before | ||||||
23 | 2018; and | ||||||
24 | (ii) in the portion of the 5-year period beginning in | ||||||
25 | the State fiscal year in which the actuarial
change first | ||||||
26 | applied that occurs in State fiscal year 2018 or |
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1 | thereafter, by calculating the change in equal annual | ||||||
2 | amounts over that 5-year period and then implementing it | ||||||
3 | at the resulting annual rate in each of the remaining | ||||||
4 | fiscal years in that 5-year period. | ||||||
5 | For State fiscal years 1996 through 2005, the State | ||||||
6 | contribution to
the System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be
increased in equal annual | ||||||
8 | increments so that by State fiscal year 2011, the
State is | ||||||
9 | contributing at the rate required under this Section; except | ||||||
10 | that
(i) for State fiscal year 1998, for all purposes of this | ||||||
11 | Code and any other
law of this State, the certified percentage | ||||||
12 | of the applicable employee payroll
shall be 5.052% for | ||||||
13 | employees earning eligible creditable service under Section
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14 | 14-110 and 6.500% for all other employees, notwithstanding any | ||||||
15 | contrary
certification made under Section 14-135.08 before | ||||||
16 | July 7, 1997 (the effective date of Public Act 90-65), and (ii)
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17 | in the following specified State fiscal years, the State | ||||||
18 | contribution to
the System shall not be less than the | ||||||
19 | following indicated percentages of the
applicable employee | ||||||
20 | payroll, even if the indicated percentage will produce a
State | ||||||
21 | contribution in excess of the amount otherwise required under | ||||||
22 | this
subsection and subsection (a):
9.8% in FY 1999;
10.0% in | ||||||
23 | FY 2000;
10.2% in FY 2001;
10.4% in FY 2002;
10.6% in FY 2003; | ||||||
24 | and
10.8% in FY 2004.
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25 | Beginning in State fiscal year 2046, the minimum State | ||||||
26 | contribution for
each fiscal year shall be the amount needed |
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1 | to maintain the total assets of
the System at 90% of the total | ||||||
2 | actuarial liabilities of the System.
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3 | Amounts received by the System pursuant to Section 25 of | ||||||
4 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
5 | Finance Act in any fiscal year do not reduce and do not | ||||||
6 | constitute payment of any portion of the minimum State | ||||||
7 | contribution required under this Article in that fiscal year. | ||||||
8 | Such amounts shall not reduce, and shall not be included in the | ||||||
9 | calculation of, the required State contributions under this | ||||||
10 | Article in any future year until the System has reached a | ||||||
11 | funding ratio of at least 90%. A reference in this Article to | ||||||
12 | the "required State contribution" or any substantially similar | ||||||
13 | term does not include or apply to any amounts payable to the | ||||||
14 | System under Section 25 of the Budget Stabilization Act.
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15 | Notwithstanding any other provision of this Section, the | ||||||
16 | required State
contribution for State fiscal year 2005 and for | ||||||
17 | fiscal year 2008 and each fiscal year thereafter, as
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18 | calculated under this Section and
certified under Section | ||||||
19 | 14-135.08, shall not exceed an amount equal to (i) the
amount | ||||||
20 | of the required State contribution that would have been | ||||||
21 | calculated under
this Section for that fiscal year if the | ||||||
22 | System had not received any payments
under subsection (d) of | ||||||
23 | Section 7.2 of the General Obligation Bond Act, minus
(ii) the | ||||||
24 | portion of the State's total debt service payments for that | ||||||
25 | fiscal
year on the bonds issued in fiscal year 2003 for the | ||||||
26 | purposes of that Section 7.2, as determined
and certified by |
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1 | the Comptroller, that is the same as the System's portion of
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2 | the total moneys distributed under subsection (d) of Section | ||||||
3 | 7.2 of the General
Obligation Bond Act.
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4 | (f) (Blank).
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5 | (g) For purposes of determining the required State | ||||||
6 | contribution to the System, the value of the System's assets | ||||||
7 | shall be equal to the actuarial value of the System's assets, | ||||||
8 | which shall be calculated as follows: | ||||||
9 | As of June 30, 2008, the actuarial value of the System's | ||||||
10 | assets shall be equal to the market value of the assets as of | ||||||
11 | that date. In determining the actuarial value of the System's | ||||||
12 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
13 | gains or losses from investment return incurred in a fiscal | ||||||
14 | year shall be recognized in equal annual amounts over the | ||||||
15 | 5-year period following that fiscal year. | ||||||
16 | (h) For purposes of determining the required State | ||||||
17 | contribution to the System for a particular year, the | ||||||
18 | actuarial value of assets shall be assumed to earn a rate of | ||||||
19 | return equal to the System's actuarially assumed rate of | ||||||
20 | return. | ||||||
21 | (i) (Blank). | ||||||
22 | (j) (Blank). | ||||||
23 | (k) For fiscal year 2012 and each fiscal year thereafter, | ||||||
24 | after the submission of all payments for eligible employees | ||||||
25 | from personal services line items paid from the General | ||||||
26 | Revenue Fund in the fiscal year have been made, the |
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1 | Comptroller shall provide to the System a certification of the | ||||||
2 | sum of all expenditures in the fiscal year for personal | ||||||
3 | services. Upon receipt of the certification, the System shall | ||||||
4 | determine the amount due to the System based on the full rate | ||||||
5 | certified by the Board under Section 14-135.08 for the fiscal | ||||||
6 | year in order to meet the State's obligation under this | ||||||
7 | Section. The System shall compare this amount due to the | ||||||
8 | amount received by the System for the fiscal year. If the | ||||||
9 | amount due is more than the amount received, the difference | ||||||
10 | shall be termed the "Prior Fiscal Year Shortfall" for purposes | ||||||
11 | of this Section, and the Prior Fiscal Year Shortfall shall be | ||||||
12 | satisfied under Section 1.2 of the State Pension Funds | ||||||
13 | Continuing Appropriation Act. If the amount due is less than | ||||||
14 | the amount received, the difference shall be termed the "Prior | ||||||
15 | Fiscal Year Overpayment" for purposes of this Section, and the | ||||||
16 | Prior Fiscal Year Overpayment shall be repaid by the System to | ||||||
17 | the General Revenue Fund as soon as practicable after the | ||||||
18 | certification. | ||||||
19 | (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; | ||||||
20 | 101-10, eff. 6-5-19.)
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