Sen. John J. Cullerton

Filed: 5/30/2012

 

 


 

 


 
09700HB3076sam003LRB097 06263 JDS 70394 a

1
AMENDMENT TO HOUSE BILL 3076

2    AMENDMENT NO. ______. Amend House Bill 3076, AS AMENDED,
3with reference to page and line numbers of Senate Amendment No.
42, as follows:
 
5on page 25, in line 10, immediately after "15-163," by
6inserting "15-165,"; and
 
7by replacing line 14 on page 81 through line 8 on page 86 with
8the following:
 
9    "(40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
10    Sec. 7-109. Employee.
11    (1) "Employee" means any person who:
12        (a) 1. Receives earnings as payment for the performance
13        of personal services or official duties out of the
14        general fund of a municipality, or out of any special
15        fund or funds controlled by a municipality, or by an

 

 

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1        instrumentality thereof, or a participating
2        instrumentality, including, in counties, the fees or
3        earnings of any county fee office; and
4            2. Under the usual common law rules applicable in
5        determining the employer-employee relationship, has
6        the status of an employee with a municipality, or any
7        instrumentality thereof, or a participating
8        instrumentality, including aldermen, county
9        supervisors and other persons (excepting those
10        employed as independent contractors) who are paid
11        compensation, fees, allowances or other emolument for
12        official duties, and, in counties, the several county
13        fee offices.
14        (b) Serves as a township treasurer appointed under the
15    School Code, as heretofore or hereafter amended, and who
16    receives for such services regular compensation as
17    distinguished from per diem compensation, and any regular
18    employee in the office of any township treasurer whether or
19    not his earnings are paid from the income of the permanent
20    township fund or from funds subject to distribution to the
21    several school districts and parts of school districts as
22    provided in the School Code, or from both such sources; or
23    is the chief executive officer, chief educational officer,
24    chief fiscal officer, or other employee of a Financial
25    Oversight Panel established pursuant to Article 1H of the
26    School Code, other than a superintendent or certified

 

 

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1    school business official, except that such person shall not
2    be treated as an employee under this Section if that person
3    has negotiated with the Financial Oversight Panel, in
4    conjunction with the school district, a contractual
5    agreement for exclusion from this Section.
6        (c) Holds an elective office in a municipality,
7    instrumentality thereof or participating instrumentality.
8    (2) "Employee" does not include persons who:
9        (a) Are eligible for inclusion under any of the
10    following laws:
11            1. "An Act in relation to an Illinois State
12        Teachers' Pension and Retirement Fund", approved May
13        27, 1915, as amended;
14            2. Articles 15 and 16 of this Code.
15        However, such persons shall be included as employees to
16    the extent of earnings that are not eligible for inclusion
17    under the foregoing laws for services not of an
18    instructional nature of any kind.
19        However, any member of the armed forces who is employed
20    as a teacher of subjects in the Reserve Officers Training
21    Corps of any school and who is not certified under the law
22    governing the certification of teachers shall be included
23    as an employee.
24        (b) Are designated by the governing body of a
25    municipality in which a pension fund is required by law to
26    be established for policemen or firemen, respectively, as

 

 

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1    performing police or fire protection duties, except that
2    when such persons are the heads of the police or fire
3    department and are not eligible to be included within any
4    such pension fund, they shall be included within this
5    Article; provided, that such persons shall not be excluded
6    to the extent of concurrent service and earnings not
7    designated as being for police or fire protection duties.
8    However, (i) any head of a police department who was a
9    participant under this Article immediately before October
10    1, 1977 and did not elect, under Section 3-109 of this Act,
11    to participate in a police pension fund shall be an
12    "employee", and (ii) any chief of police who elects to
13    participate in this Fund under Section 3-109.1 of this
14    Code, regardless of whether such person continues to be
15    employed as chief of police or is employed in some other
16    rank or capacity within the police department, shall be an
17    employee under this Article for so long as such person is
18    employed to perform police duties by a participating
19    municipality and has not lawfully rescinded that election.
20        (c) After August 26, 2011 (the effective date of Public
21    Act 97-609) this amendatory Act of the 97th General
22    Assembly, are contributors to or eligible to contribute to
23    a Taft-Hartley pension plan established on or before June
24    1, 2011 and are employees of a theatre, arena, or
25    convention center that is located in a municipality located
26    in a county with a population greater than 5,000,000, and

 

 

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1    to which the participating municipality is required to
2    contribute as the person's employer based on earnings from
3    the municipality. Nothing in this paragraph shall affect
4    service credit or creditable service for any period of
5    service prior to August 26, 2011 the effective date of this
6    amendatory Act of the 97th General Assembly, and this
7    paragraph shall not apply to individuals who are
8    participating in the Fund prior to August 26, 2011 the
9    effective date of this amendatory Act of the 97th General
10    Assembly.
11        (d) Become an employee of any of the following
12    participating instrumentalities on or after the effective
13    date of this amendatory Act of the 97th General Assembly:
14    the Illinois Municipal League; the Illinois Association of
15    Park Districts; the Illinois Supervisors, County
16    Commissioners and Superintendents of Highways Association;
17    an association, or not-for-profit corporation, membership
18    in which is authorized under Section 85-15 of the Township
19    Code; the United Counties Council; or the Will County
20    Governmental League.
21    (3) All persons, including, without limitation, public
22defenders and probation officers, who receive earnings from
23general or special funds of a county for performance of
24personal services or official duties within the territorial
25limits of the county, are employees of the county (unless
26excluded by subsection (2) of this Section) notwithstanding

 

 

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1that they may be appointed by and are subject to the direction
2of a person or persons other than a county board or a county
3officer. It is hereby established that an employer-employee
4relationship under the usual common law rules exists between
5such employees and the county paying their salaries by reason
6of the fact that the county boards fix their rates of
7compensation, appropriate funds for payment of their earnings
8and otherwise exercise control over them. This finding and this
9amendatory Act shall apply to all such employees from the date
10of appointment whether such date is prior to or after the
11effective date of this amendatory Act and is intended to
12clarify existing law pertaining to their status as
13participating employees in the Fund.
14(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
15revised 9-28-11.)"; and
 
16on page 90, immediately below line 21, by inserting the
17following:
 
18    "(40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
19    Sec. 15-106. Employer. "Employer": The University of
20Illinois, Southern Illinois University, Chicago State
21University, Eastern Illinois University, Governors State
22University, Illinois State University, Northeastern Illinois
23University, Northern Illinois University, Western Illinois
24University, the State Board of Higher Education, the Illinois

 

 

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1Mathematics and Science Academy, the University Civil Service
2Merit Board, the Board of Trustees of the State Universities
3Retirement System, the Illinois Community College Board,
4community college boards, any association of community college
5boards organized under Section 3-55 of the Public Community
6College Act, the Board of Examiners established under the
7Illinois Public Accounting Act, and, only during the period for
8which employer contributions required under Section 15-155 are
9paid, the following organizations: the alumni associations,
10the foundations and the athletic associations which are
11affiliated with the universities and colleges included in this
12Section as employers. An individual that begins employment
13after the effective date of this amendatory Act of the 97th
14General Assembly with an entity not defined as an employer in
15this Section shall not be deemed an employee for the purposes
16of this Article with respect to that employment and shall not
17be eligible to participate in the System with respect to that
18employment; provided, however, that those individuals who are
19both employed and already participants in the System on the
20effective date of this amendatory Act of the 97th General
21Assembly shall be allowed to continue as participants in the
22System for the duration of that employment.
23    Notwithstanding any provision of law to the contrary, an
24individual who begins employment with any of the following
25employers on or after the effective date of this amendatory Act
26of the 97th General Assembly shall not be deemed an employee

 

 

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1and shall not be eligible to participate in the System with
2respect to that employment: any association of community
3college boards organized under Section 3-55 of the Public
4Community College Act, the Association of Illinois
5Middle-Grade Schools, the Illinois Association of School
6Administrators, the Illinois Association for Supervision and
7Curriculum Development, the Illinois Principals Association,
8the Illinois Association of School Business Officials, or the
9Illinois Special Olympics; provided, however, that those
10individuals who are both employed and already participants in
11the System on the effective date of this amendatory Act of the
1297th General Assembly shall be allowed to continue as
13participants in the System for the duration of that employment.
14    A department as defined in Section 14-103.04 is an employer
15for any person appointed by the Governor under the Civil
16Administrative Code of Illinois who is a participating employee
17as defined in Section 15-109. The Department of Central
18Management Services is an employer with respect to persons
19employed by the State Board of Higher Education in positions
20with the Illinois Century Network as of June 30, 2004 who
21remain continuously employed after that date by the Department
22of Central Management Services in positions with the Illinois
23Century Network, the Bureau of Communication and Computer
24Services, or, if applicable, any successor bureau.
25    The cities of Champaign and Urbana shall be considered
26employers, but only during the period for which contributions

 

 

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1are required to be made under subsection (b-1) of Section
215-155 and only with respect to individuals described in
3subsection (h) of Section 15-107.
4(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
5Sec. 999.)"; and
 
6on page 132, in line 26, by replacing "arising" with
7"associated with the total cost of benefits accrued"; and
 
8on page 165, immediately below line 7, by inserting the
9following:
 
10    "(40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
11    Sec. 15-165. To certify amounts and submit vouchers.
12    (a) The Board shall certify to the Governor on or before
13November 15 of each year until November 15, 2011 the
14appropriation required from State funds for the purposes of
15this System for the following fiscal year. The certification
16under this subsection (a) shall include a copy of the actuarial
17recommendations upon which it is based and shall specifically
18identify the System's projected State normal cost for that
19fiscal year and the projected State cost for the self-managed
20plan for that fiscal year.
21    On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking

 

 

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1into account the amounts appropriated to and received by the
2System under subsection (d) of Section 7.2 of the General
3Obligation Bond Act.
4    On or before July 1, 2005, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2006, taking
7into account the changes in required State contributions made
8by this amendatory Act of the 94th General Assembly.
9    On or before April 1, 2011, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2011, applying
12the changes made by Public Act 96-889 to the System's assets
13and liabilities as of June 30, 2009 as though Public Act 96-889
14was approved on that date.
15    (a-5) On or before November 1 of each year, beginning
16November 1, 2012, the Board shall submit to the State Actuary,
17the Governor, and the General Assembly a proposed certification
18of the amount of the required State contribution to the System
19for the next fiscal year, along with all of the actuarial
20assumptions, calculations, and data upon which that proposed
21certification is based. On or before January 1 of each year,
22beginning January 1, 2013, the State Actuary shall issue a
23preliminary report concerning the proposed certification and
24identifying, if necessary, recommended changes in actuarial
25assumptions that the Board must consider before finalizing its
26certification of the required State contributions. On or before

 

 

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1January 15, 2013 and each January 15 thereafter, the Board
2shall certify to the Governor and the General Assembly the
3amount of the required State contribution for the next fiscal
4year. The Board's certification must note, in a written
5response to the State Actuary, any deviations from the State
6Actuary's recommended changes, the reason or reasons for not
7following the State Actuary's recommended changes, and the
8fiscal impact of not following the State Actuary's recommended
9changes on the required State contribution.
10    (b) The Board shall certify to the State Comptroller or
11employer, as the case may be, from time to time, by its
12president and secretary, with its seal attached, the amounts
13payable to the System from the various funds.
14    (c) Beginning in State fiscal year 1996, on or as soon as
15possible after the 15th day of each month the Board shall
16submit vouchers for payment of State contributions to the
17System, in a total monthly amount of one-twelfth of the
18required annual State contribution certified under subsection
19(a). From the effective date of this amendatory Act of the 93rd
20General Assembly through June 30, 2004, the Board shall not
21submit vouchers for the remainder of fiscal year 2004 in excess
22of the fiscal year 2004 certified contribution amount
23determined under this Section after taking into consideration
24the transfer to the System under subsection (b) of Section
256z-61 of the State Finance Act. These vouchers shall be paid by
26the State Comptroller and Treasurer by warrants drawn on the

 

 

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1funds appropriated to the System for that fiscal year.
2    If in any month the amount remaining unexpended from all
3other appropriations to the System for the applicable fiscal
4year (including the appropriations to the System under Section
58.12 of the State Finance Act and Section 1 of the State
6Pension Funds Continuing Appropriation Act) is less than the
7amount lawfully vouchered under this Section, the difference
8shall be paid from the General Revenue Fund under the
9continuing appropriation authority provided in Section 1.1 of
10the State Pension Funds Continuing Appropriation Act.
11    (d) So long as the payments received are the full amount
12lawfully vouchered under this Section, payments received by the
13System under this Section shall be applied first toward the
14employer contribution to the self-managed plan established
15under Section 15-158.2. Payments shall be applied second toward
16the employer's portion of the normal costs of the System, as
17defined in subsection (f) of Section 15-155. The balance shall
18be applied toward the unfunded actuarial liabilities of the
19System.
20    (e) In the event that the System does not receive, as a
21result of legislative enactment or otherwise, payments
22sufficient to fully fund the employer contribution to the
23self-managed plan established under Section 15-158.2 and to
24fully fund that portion of the employer's portion of the normal
25costs of the System, as calculated in accordance with Section
2615-155(a-1), then any payments received shall be applied

 

 

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1proportionately to the optional retirement program established
2under Section 15-158.2 and to the employer's portion of the
3normal costs of the System, as calculated in accordance with
4Section 15-155(a-1).
5(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)";
6and
 
7by replacing line 25 on page 180 through line 20 on page 201
8with the following:
 
9    "(40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
10    Sec. 16-158. Contributions by State and other employing
11units.
12    (a) The State shall make contributions to the System by
13means of appropriations from the Common School Fund and other
14State funds of amounts which, together with other employer
15contributions, employee contributions, investment income, and
16other income, will be sufficient to meet the cost of
17maintaining and administering the System on a 90% funded basis
18in accordance with actuarial recommendations.
19    The Board shall determine the amount of State contributions
20required for each fiscal year on the basis of the actuarial
21tables and other assumptions adopted by the Board and the
22recommendations of the actuary, using the formula in subsection
23(b-3).
24    (a-1) Annually, on or before November 15 until November 15,

 

 

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12011, the Board shall certify to the Governor the amount of the
2required State contribution for the coming fiscal year. The
3certification under this subsection (a-1) shall include a copy
4of the actuarial recommendations upon which it is based.
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 April 1, 2011, the Board shall
12recalculate and recertify to the Governor the amount of the
13required State contribution to the System for State fiscal year
142006, taking into account the changes in required State
15contributions made by this amendatory Act of the 94th General
16Assembly.
17    On or before April 1, 2011 June 15, 2010, the Board shall
18recalculate and recertify to the Governor the amount of the
19required State contribution to the System for State fiscal year
202011, applying the changes made by Public Act 96-889 to the
21System's assets and liabilities as of June 30, 2009 as though
22Public Act 96-889 was approved on that date.
23    (a-5) On or before November 1 of each year, beginning
24November 1, 2012, the Board shall submit to the State Actuary,
25the Governor, and the General Assembly a proposed certification
26of the amount of the required State contribution to the System

 

 

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1for the next fiscal year, along with all of the actuarial
2assumptions, calculations, and data upon which that proposed
3certification is based. On or before January 1 of each year,
4beginning January 1, 2013, the State Actuary shall issue a
5preliminary report concerning the proposed certification and
6identifying, if necessary, recommended changes in actuarial
7assumptions that the Board must consider before finalizing its
8certification of the required State contributions. On or before
9January 15, 2013 and each January 15 thereafter, the Board
10shall certify to the Governor and the General Assembly the
11amount of the required State contribution for the next fiscal
12year. The Board's certification must note any deviations from
13the State Actuary's recommended changes, the reason or reasons
14for not following the State Actuary's recommended changes, and
15the fiscal impact of not following the State Actuary's
16recommended changes on the required State contribution.
17    (b) Through State fiscal year 1995, the State contributions
18shall be paid to the System in accordance with Section 18-7 of
19the School Code.
20    (b-1) Beginning in State fiscal year 1996, on the 15th day
21of each month, or as soon thereafter as may be practicable, the
22Board shall submit vouchers for payment of State contributions
23to the System, in a total monthly amount of one-twelfth of the
24required annual State contribution certified under subsection
25(a-1). From the effective date of this amendatory Act of the
2693rd General Assembly through June 30, 2004, the Board shall

 

 

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1not submit vouchers for the remainder of fiscal year 2004 in
2excess of the fiscal year 2004 certified contribution amount
3determined under this Section after taking into consideration
4the transfer to the System under subsection (a) of Section
56z-61 of the State Finance Act. These vouchers shall be paid by
6the State Comptroller and Treasurer by warrants drawn on the
7funds appropriated to the System for that fiscal year.
8    If in any month the amount remaining unexpended from all
9other appropriations to the System for the applicable fiscal
10year (including the appropriations to the System under Section
118.12 of the State Finance Act and Section 1 of the State
12Pension Funds Continuing Appropriation Act) is less than the
13amount lawfully vouchered under this subsection, the
14difference shall be paid from the Common School Fund under the
15continuing appropriation authority provided in Section 1.1 of
16the State Pension Funds Continuing Appropriation Act.
17    (b-2) Allocations from the Common School Fund apportioned
18to school districts not coming under this System shall not be
19diminished or affected by the provisions of this Article.
20    (b-3) For State fiscal years 2012 through 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of
24the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the
26required State contribution shall be calculated each year as a

 

 

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1level percentage of payroll over the years remaining to and
2including fiscal year 2045 and shall be determined under the
3projected unit credit actuarial cost method.
4    For State fiscal years 1996 through 2005, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7so that by State fiscal year 2011, the State is contributing at
8the rate required under this Section; except that in the
9following specified State fiscal years, the State contribution
10to the System shall not be less than the following indicated
11percentages of the applicable employee payroll, even if the
12indicated percentage will produce a State contribution in
13excess of the amount otherwise required under this subsection
14and subsection (a), and notwithstanding any contrary
15certification made under subsection (a-1) before the effective
16date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
17in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
182003; and 13.56% in FY 2004.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2006 is
21$534,627,700.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2007 is
24$738,014,500.
25    For each of State fiscal years 2008 through 2009, the State
26contribution to the System, as a percentage of the applicable

 

 

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1employee payroll, shall be increased in equal annual increments
2from the required State contribution for State fiscal year
32007, so that by State fiscal year 2011, the State is
4contributing at the rate otherwise required under this Section.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2010 is
7$2,089,268,000 and shall be made from the proceeds of bonds
8sold in fiscal year 2010 pursuant to Section 7.2 of the General
9Obligation Bond Act, less (i) the pro rata share of bond sale
10expenses determined by the System's share of total bond
11proceeds, (ii) any amounts received from the Common School Fund
12in fiscal year 2010, and (iii) any reduction in bond proceeds
13due to the issuance of discounted bonds, if applicable.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2011 is
16the amount recertified by the System on or before April 1, 2011
17pursuant to subsection (a-1) of this Section and shall be made
18from the proceeds of bonds sold in fiscal year 2011 pursuant to
19Section 7.2 of the General Obligation Bond Act, less (i) the
20pro rata share of bond sale expenses determined by the System's
21share of total bond proceeds, (ii) any amounts received from
22the Common School Fund in fiscal year 2011, and (iii) any
23reduction in bond proceeds due to the issuance of discounted
24bonds, if applicable. This amount shall include, in addition to
25the amount certified by the System, an amount necessary to meet
26employer contributions required by the State as an employer

 

 

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

 

 

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1payments under subsection (d) of Section 7.2 of the General
2Obligation Bond Act, minus (ii) the portion of the State's
3total debt service payments for that fiscal year on the bonds
4issued in fiscal year 2003 for the purposes of that Section
57.2, as determined and certified by the Comptroller, that is
6the same as the System's portion of the total moneys
7distributed under subsection (d) of Section 7.2 of the General
8Obligation Bond Act. In determining this maximum for State
9fiscal years 2008 through 2010, however, the amount referred to
10in item (i) shall be increased, as a percentage of the
11applicable employee payroll, in equal increments calculated
12from the sum of the required State contribution for State
13fiscal year 2007 plus the applicable portion of the State's
14total debt service payments for fiscal year 2007 on the bonds
15issued in fiscal year 2003 for the purposes of Section 7.2 of
16the General Obligation Bond Act, so that, by State fiscal year
172011, the State is contributing at the rate otherwise required
18under this Section.
19    (c) Payment of the required State contributions and of all
20pensions, retirement annuities, death benefits, refunds, and
21other benefits granted under or assumed by this System, and all
22expenses in connection with the administration and operation
23thereof, are obligations of the State.
24    If members are paid from special trust or federal funds
25which are administered by the employing unit, whether school
26district or other unit, the employing unit shall pay to the

 

 

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1System from such funds the full accruing retirement costs based
2upon that service, as determined by the System. Employer
3contributions, based on salary paid to members from federal
4funds, may be forwarded by the distributing agency of the State
5of Illinois to the System prior to allocation, in an amount
6determined in accordance with guidelines established by such
7agency and the System.
8    (d) Effective July 1, 1986, any employer of a teacher as
9defined in paragraph (8) of Section 16-106 shall pay the
10employer's normal cost of benefits based upon the teacher's
11service, in addition to employee contributions, as determined
12by the System. Such employer contributions shall be forwarded
13monthly in accordance with guidelines established by the
14System.
15    However, with respect to benefits granted under Section
1616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
17of Section 16-106, the employer's contribution shall be 12%
18(rather than 20%) of the member's highest annual salary rate
19for each year of creditable service granted, and the employer
20shall also pay the required employee contribution on behalf of
21the teacher. For the purposes of Sections 16-133.4 and
2216-133.5, a teacher as defined in paragraph (8) of Section
2316-106 who is serving in that capacity while on leave of
24absence from another employer under this Article shall not be
25considered an employee of the employer from which the teacher
26is on leave.

 

 

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1    (e) Beginning July 1, 1998, every employer of a teacher
2shall pay to the System an employer contribution computed as
3follows:
4        (1) Beginning July 1, 1998 through June 30, 1999, the
5    employer contribution shall be equal to 0.3% of each
6    teacher's salary.
7        (2) Beginning July 1, 1999 and thereafter, the employer
8    contribution shall be equal to 0.58% of each teacher's
9    salary.
10The school district or other employing unit may pay these
11employer contributions out of any source of funding available
12for that purpose and shall forward the contributions to the
13System on the schedule established for the payment of member
14contributions.
15    These employer contributions are intended to offset a
16portion of the cost to the System of the increases in
17retirement benefits resulting from this amendatory Act of 1998.
18    Each employer of teachers is entitled to a credit against
19the contributions required under this subsection (e) with
20respect to salaries paid to teachers for the period January 1,
212002 through June 30, 2003, equal to the amount paid by that
22employer under subsection (a-5) of Section 6.6 of the State
23Employees Group Insurance Act of 1971 with respect to salaries
24paid to teachers for that period.
25    The additional 1% employee contribution required under
26Section 16-152 by this amendatory Act of 1998 is the

 

 

09700HB3076sam003- 23 -LRB097 06263 JDS 70394 a

1responsibility of the teacher and not the teacher's employer,
2unless the employer agrees, through collective bargaining or
3otherwise, to make the contribution on behalf of the teacher.
4    If an employer is required by a contract in effect on May
51, 1998 between the employer and an employee organization to
6pay, on behalf of all its full-time employees covered by this
7Article, all mandatory employee contributions required under
8this Article, then the employer shall be excused from paying
9the employer contribution required under this subsection (e)
10for the balance of the term of that contract. The employer and
11the employee organization shall jointly certify to the System
12the existence of the contractual requirement, in such form as
13the System may prescribe. This exclusion shall cease upon the
14termination, extension, or renewal of the contract at any time
15after May 1, 1998.
16    (f) If the amount of a teacher's salary for any school year
17used to determine final average salary exceeds the member's
18annual full-time salary rate with the same employer for the
19previous school year by more than 6%, the teacher's employer
20shall pay to the System, in addition to all other payments
21required under this Section and in accordance with guidelines
22established by the System, the present value of the increase in
23benefits resulting from the portion of the increase in salary
24that is in excess of 6%. This present value shall be computed
25by the System on the basis of the actuarial assumptions and
26tables used in the most recent actuarial valuation of the

 

 

09700HB3076sam003- 24 -LRB097 06263 JDS 70394 a

1System that is available at the time of the computation. If a
2teacher's salary for the 2005-2006 school year is used to
3determine final average salary under this subsection (f), then
4the changes made to this subsection (f) by Public Act 94-1057
5shall apply in calculating whether the increase in his or her
6salary is in excess of 6%. For the purposes of this Section,
7change in employment under Section 10-21.12 of the School Code
8on or after June 1, 2005 shall constitute a change in employer.
9The System may require the employer to provide any pertinent
10information or documentation. The changes made to this
11subsection (f) by this amendatory Act of the 94th General
12Assembly apply without regard to whether the teacher was in
13service on or after its effective date.
14    Whenever it determines that a payment is or may be required
15under this subsection, the System shall calculate the amount of
16the payment and bill the employer for that amount. The bill
17shall specify the calculations used to determine the amount
18due. If the employer disputes the amount of the bill, it may,
19within 30 days after receipt of the bill, apply to the System
20in writing for a recalculation. The application must specify in
21detail the grounds of the dispute and, if the employer asserts
22that the calculation is subject to subsection (g) or (h) of
23this Section, must include an affidavit setting forth and
24attesting to all facts within the employer's knowledge that are
25pertinent to the applicability of that subsection. Upon
26receiving a timely application for recalculation, the System

 

 

09700HB3076sam003- 25 -LRB097 06263 JDS 70394 a

1shall review the application and, if appropriate, recalculate
2the amount due.
3    The employer contributions required under this subsection
4(f) may be paid in the form of a lump sum within 90 days after
5receipt of the bill. If the employer contributions are not paid
6within 90 days after receipt of the bill, then interest will be
7charged at a rate equal to the System's annual actuarially
8assumed rate of return on investment compounded annually from
9the 91st day after receipt of the bill. Payments must be
10concluded within 3 years after the employer's receipt of the
11bill.
12    (g) This subsection (g) applies only to payments made or
13salary increases given on or after June 1, 2005 but before July
141, 2011. The changes made by Public Act 94-1057 shall not
15require the System to refund any payments received before July
1631, 2006 (the effective date of Public Act 94-1057).
17    When assessing payment for any amount due under subsection
18(f), the System shall exclude salary increases paid to teachers
19under contracts or collective bargaining agreements entered
20into, amended, or renewed before June 1, 2005.
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude salary increases paid to a
23teacher at a time when the teacher is 10 or more years from
24retirement eligibility under Section 16-132 or 16-133.2.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude salary increases resulting from

 

 

09700HB3076sam003- 26 -LRB097 06263 JDS 70394 a

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

 

 

09700HB3076sam003- 27 -LRB097 06263 JDS 70394 a

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

 

 

09700HB3076sam003- 28 -LRB097 06263 JDS 70394 a

1    Act 94-1057.
2    (j) For purposes of determining the required State
3contribution to the System, the value of the System's assets
4shall be equal to the actuarial value of the System's assets,
5which shall be calculated as follows:
6    As of June 30, 2008, the actuarial value of the System's
7assets shall be equal to the market value of the assets as of
8that date. In determining the actuarial value of the System's
9assets for fiscal years after June 30, 2008, any actuarial
10gains or losses from investment return incurred in a fiscal
11year shall be recognized in equal annual amounts over the
125-year period following that fiscal year.
13    (k) For purposes of determining the required State
14contribution to the system for a particular year, the actuarial
15value of assets shall be assumed to earn a rate of return equal
16to the system's actuarially assumed rate of return.
17(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
1896-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff.
191-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)"; and
 
20on page 213, in line 11, by changing "equitable" to "equitable,
21but excluding the changes, the impact of changes, and the
22implementation of the changes set forth in this amendatory Act
23of the 97th General Assembly; and
 
24on page 223, in line 16, by replacing "35 through 100," with

 

 

09700HB3076sam003- 29 -LRB097 06263 JDS 70394 a

1"40, 95, 100,"; and
 
2on page 224, by replacing lines 1 and 2, with the following:
3    "Sections 10, 35, and 45 through 90 of this Act, as well as
4the other provisions of Section 30 of this Act, are mutually
5dependent and inseverable. If any of".