Sen. John J. Cullerton
Filed: 5/30/2012
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1 | AMENDMENT TO HOUSE BILL 3076
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2 | AMENDMENT NO. ______. Amend House Bill 3076, AS AMENDED, | ||||||
3 | with reference to page and line numbers of Senate Amendment No. | ||||||
4 | 2, as follows: | ||||||
5 | on page 25, in line 10, immediately after "15-163," by | ||||||
6 | inserting "15-165,"; and | ||||||
7 | by replacing line 14 on page 81 through line 8 on page 86 with | ||||||
8 | the following:
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9 | "(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
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10 | Sec. 7-109. Employee.
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11 | (1) "Employee" means any person who:
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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
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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
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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.
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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.
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6 | (c) Holds an elective office in a municipality, | ||||||
7 | instrumentality
thereof or participating instrumentality.
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8 | (2) "Employee" does not include persons who:
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9 | (a) Are eligible for inclusion under any of the | ||||||
10 | following laws:
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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.
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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.
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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
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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.
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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
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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
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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 .
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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 | ||||||
22 | defenders and
probation officers, who receive earnings from | ||||||
23 | general or special funds
of a county for performance of | ||||||
24 | personal services or official duties
within the territorial | ||||||
25 | limits of the county, are employees of the county
(unless | ||||||
26 | excluded by subsection (2) of this Section) notwithstanding |
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1 | that
they may be appointed by and are subject to the direction | ||||||
2 | of a person or
persons other than a county board or a county | ||||||
3 | officer. It is hereby
established that an employer-employee | ||||||
4 | relationship under the usual
common law rules exists between | ||||||
5 | such employees and the county paying
their salaries by reason | ||||||
6 | of the fact that the county boards fix their
rates of | ||||||
7 | compensation, appropriate funds for payment of their earnings
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8 | and otherwise exercise control over them. This finding and this
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9 | amendatory Act shall apply to all such employees from the date | ||||||
10 | of
appointment whether such date is prior to or after the | ||||||
11 | effective date of
this amendatory Act and is intended to | ||||||
12 | clarify existing law pertaining
to their status as | ||||||
13 | participating employees in the Fund.
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14 | (Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11; | ||||||
15 | revised 9-28-11.)"; and
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16 | on page 90, immediately below line 21, by inserting the | ||||||
17 | following:
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18 | "(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
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19 | Sec. 15-106. Employer. "Employer": The University of | ||||||
20 | Illinois, Southern
Illinois University, Chicago State | ||||||
21 | University, Eastern Illinois University,
Governors State | ||||||
22 | University, Illinois State University, Northeastern Illinois
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23 | University, Northern Illinois University, Western Illinois | ||||||
24 | University, the
State Board of Higher Education, the Illinois |
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1 | Mathematics and Science Academy,
the University Civil Service | ||||||
2 | Merit Board, the Board of
Trustees of the State Universities | ||||||
3 | Retirement System, the Illinois Community
College Board, | ||||||
4 | community college
boards, any association of community college | ||||||
5 | boards organized under Section
3-55 of the Public Community | ||||||
6 | College Act, the Board of Examiners established
under the | ||||||
7 | Illinois Public Accounting Act, and, only during the period for | ||||||
8 | which
employer contributions required under Section 15-155 are | ||||||
9 | paid, the following
organizations: the alumni associations, | ||||||
10 | the foundations and the athletic
associations which are | ||||||
11 | affiliated with the universities and colleges included
in this | ||||||
12 | Section as employers. An individual that begins employment | ||||||
13 | after the effective date of this amendatory Act of the 97th | ||||||
14 | General Assembly with an entity not defined as an employer in | ||||||
15 | this Section shall not be deemed an employee for the purposes | ||||||
16 | of this Article with respect to that employment and shall not | ||||||
17 | be eligible to participate in the System with respect to that | ||||||
18 | employment; provided, however, that those individuals who are | ||||||
19 | both employed and already participants in the System on the | ||||||
20 | effective date of this amendatory Act of the 97th General | ||||||
21 | Assembly shall be allowed to continue as participants in the | ||||||
22 | System for the duration of that employment. | ||||||
23 | Notwithstanding any provision of law to the contrary, an | ||||||
24 | individual who begins employment with any of the following | ||||||
25 | employers on or after the effective date of this amendatory Act | ||||||
26 | of the 97th General Assembly shall not be deemed an employee |
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1 | and shall not be eligible to participate in the System with | ||||||
2 | respect to that employment: any association of community | ||||||
3 | college boards organized under Section
3-55 of the Public | ||||||
4 | Community College Act, the Association of Illinois | ||||||
5 | Middle-Grade Schools, the Illinois Association of School | ||||||
6 | Administrators, the Illinois Association for Supervision and | ||||||
7 | Curriculum Development, the Illinois Principals Association, | ||||||
8 | the Illinois Association of School Business Officials, or the | ||||||
9 | Illinois Special Olympics; provided, however, that those | ||||||
10 | individuals who are both employed and already participants in | ||||||
11 | the System on the effective date of this amendatory Act of the | ||||||
12 | 97th General Assembly shall be allowed to continue as | ||||||
13 | participants in the System for the duration of that employment. | ||||||
14 | A department as defined in Section 14-103.04 is
an employer | ||||||
15 | for any person appointed by the Governor under the Civil
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16 | Administrative Code of Illinois who is a participating employee | ||||||
17 | as defined in
Section 15-109. The Department of Central | ||||||
18 | Management Services is an employer with respect to persons | ||||||
19 | employed by the State Board of Higher Education in positions | ||||||
20 | with the Illinois Century Network as of June 30, 2004 who | ||||||
21 | remain continuously employed after that date by the Department | ||||||
22 | of Central Management Services in positions with the Illinois | ||||||
23 | Century Network, the Bureau of Communication and Computer | ||||||
24 | Services, or, if applicable, any successor bureau.
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25 | The cities of Champaign and Urbana shall be considered
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26 | employers, but only during the period for which contributions |
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1 | are required to
be made under subsection (b-1) of Section | ||||||
2 | 15-155 and only with respect to
individuals described in | ||||||
3 | subsection (h) of Section 15-107.
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4 | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | ||||||
5 | Sec. 999 .)"; and
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6 | on page 132, in line 26, by replacing " arising " with | ||||||
7 | " associated with the total cost of benefits accrued "; and | ||||||
8 | on page 165, immediately below line 7, by inserting the | ||||||
9 | following:
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10 | "(40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
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11 | Sec. 15-165. To certify amounts and submit vouchers.
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12 | (a) The Board shall certify to the Governor on or before | ||||||
13 | November 15 of each
year until November 15, 2011 the | ||||||
14 | appropriation required from State funds for the purposes of | ||||||
15 | this
System for the following fiscal year. The certification | ||||||
16 | under this subsection (a) shall include a copy
of the actuarial | ||||||
17 | recommendations upon which it is based and shall specifically | ||||||
18 | identify the System's projected State normal cost for that | ||||||
19 | fiscal year and the projected State cost for the self-managed | ||||||
20 | plan for that fiscal year .
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21 | On or before May 1, 2004, the Board shall recalculate and | ||||||
22 | recertify to
the Governor the amount of the required State | ||||||
23 | contribution to the System for
State fiscal year 2005, taking |
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1 | into account the amounts appropriated to and
received by the | ||||||
2 | System under subsection (d) of Section 7.2 of the General
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3 | Obligation Bond Act.
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4 | On or before July 1, 2005, the Board shall recalculate and | ||||||
5 | recertify
to the Governor the amount of the required State
| ||||||
6 | contribution to the System for State fiscal year 2006, taking | ||||||
7 | into account the changes in required State contributions made | ||||||
8 | by this amendatory Act of the 94th General Assembly.
| ||||||
9 | On or before April 1, 2011, the Board shall recalculate and | ||||||
10 | recertify to the Governor the amount of the required State | ||||||
11 | contribution to the System for State fiscal year 2011, applying | ||||||
12 | the changes made by Public Act 96-889 to the System's assets | ||||||
13 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
14 | was approved on that date. | ||||||
15 | (a-5) On or before November 1 of each year, beginning | ||||||
16 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
17 | the Governor, and the General Assembly a proposed certification | ||||||
18 | of the amount of the required State contribution to the System | ||||||
19 | for the next fiscal year, along with all of the actuarial | ||||||
20 | assumptions, calculations, and data upon which that proposed | ||||||
21 | certification is based. On or before January 1 of each year, | ||||||
22 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
23 | preliminary report concerning the proposed certification and | ||||||
24 | identifying, if necessary, recommended changes in actuarial | ||||||
25 | assumptions that the Board must consider before finalizing its | ||||||
26 | certification of the required State contributions. On or before |
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| |||||||
1 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
2 | shall certify to the Governor and the General Assembly the | ||||||
3 | amount of the required State contribution for the next fiscal | ||||||
4 | year. The Board's certification must note, in a written | ||||||
5 | response to the State Actuary, any deviations from the State | ||||||
6 | Actuary's recommended changes, the reason or reasons for not | ||||||
7 | following the State Actuary's recommended changes, and the | ||||||
8 | fiscal impact of not following the State Actuary's recommended | ||||||
9 | changes on the required State contribution. | ||||||
10 | (b) The Board shall certify to the State Comptroller or | ||||||
11 | employer, as the
case may be, from time to time, by its | ||||||
12 | president and secretary, with its seal
attached, the amounts | ||||||
13 | payable to the System from the various funds.
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14 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
15 | possible after the
15th day of each month the Board shall | ||||||
16 | submit vouchers for payment of State
contributions to the | ||||||
17 | System, in a total monthly amount of one-twelfth of the
| ||||||
18 | required annual State contribution certified under subsection | ||||||
19 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
20 | General Assembly through June 30, 2004, the Board shall not
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21 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
22 | of the
fiscal year 2004 certified contribution amount | ||||||
23 | determined
under this Section after taking into consideration | ||||||
24 | the transfer to the
System under subsection (b) of Section | ||||||
25 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
26 | the State Comptroller and Treasurer by warrants drawn
on the |
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| |||||||
1 | funds appropriated to the System for that fiscal year.
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2 | If in any month the amount remaining unexpended from all | ||||||
3 | other
appropriations to the System for the applicable fiscal | ||||||
4 | year (including the
appropriations to the System under Section | ||||||
5 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
6 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
7 | amount lawfully vouchered under this Section, the difference | ||||||
8 | shall be paid
from the General Revenue Fund under the | ||||||
9 | continuing appropriation authority
provided in Section 1.1 of | ||||||
10 | the State Pension Funds Continuing Appropriation
Act.
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11 | (d) So long as the payments received are the full amount | ||||||
12 | lawfully
vouchered under this Section, payments received by the | ||||||
13 | System under this
Section shall be applied first toward the | ||||||
14 | employer contribution to the
self-managed plan established | ||||||
15 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
16 | the employer's portion of the normal costs of the System,
as | ||||||
17 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
18 | be applied
toward the unfunded actuarial liabilities of the | ||||||
19 | System.
| ||||||
20 | (e) In the event that the System does not receive, as a | ||||||
21 | result of
legislative enactment or otherwise, payments | ||||||
22 | sufficient to
fully fund the employer contribution to the | ||||||
23 | self-managed plan
established under Section 15-158.2 and to | ||||||
24 | fully fund that portion of the
employer's portion of the normal | ||||||
25 | costs of the System, as calculated in
accordance with Section | ||||||
26 | 15-155(a-1), then any payments received shall be
applied |
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| |||||||
1 | proportionately to the optional retirement program established | ||||||
2 | under
Section 15-158.2 and to the employer's portion of the | ||||||
3 | normal costs of the
System, as calculated in accordance with | ||||||
4 | Section 15-155(a-1).
| ||||||
5 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)"; | ||||||
6 | and
| ||||||
7 | by replacing line 25 on page 180 through line 20 on page 201 | ||||||
8 | with 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 | ||||||
11 | units.
| ||||||
12 | (a) The State shall make contributions to the System by | ||||||
13 | means of
appropriations from the Common School Fund and other | ||||||
14 | State funds of amounts
which, together with other employer | ||||||
15 | contributions, employee contributions,
investment income, and | ||||||
16 | other income, will be sufficient to meet the cost of
| ||||||
17 | maintaining and administering the System on a 90% funded basis | ||||||
18 | in accordance
with actuarial recommendations.
| ||||||
19 | The Board shall determine the amount of State contributions | ||||||
20 | required for
each fiscal year on the basis of the actuarial | ||||||
21 | tables and other assumptions
adopted by the Board and the | ||||||
22 | recommendations of the actuary, using the formula
in subsection | ||||||
23 | (b-3).
| ||||||
24 | (a-1) Annually, on or before November 15 until November 15, |
| |||||||
| |||||||
1 | 2011 , the Board shall certify to the
Governor the amount of the | ||||||
2 | required State contribution for the coming fiscal
year. The | ||||||
3 | certification under this subsection (a-1) shall include a copy | ||||||
4 | of the actuarial recommendations
upon which it is based.
| ||||||
5 | On or before May 1, 2004, the Board shall recalculate and | ||||||
6 | recertify to
the Governor the amount of the required State | ||||||
7 | contribution to the System for
State fiscal year 2005, taking | ||||||
8 | into account the amounts appropriated to and
received by the | ||||||
9 | System under subsection (d) of Section 7.2 of the General
| ||||||
10 | Obligation Bond Act.
| ||||||
11 | On or before July 1, 2005 April 1, 2011 , the Board shall | ||||||
12 | recalculate and recertify
to the Governor the amount of the | ||||||
13 | required State
contribution to the System for State fiscal year | ||||||
14 | 2006, taking into account the changes in required State | ||||||
15 | contributions made by this amendatory Act of the 94th General | ||||||
16 | Assembly.
| ||||||
17 | On or before April 1, 2011 June 15, 2010 , the Board shall | ||||||
18 | recalculate and recertify to the Governor the amount of the | ||||||
19 | required State contribution to the System for State fiscal year | ||||||
20 | 2011, applying the changes made by Public Act 96-889 to the | ||||||
21 | System's assets and liabilities as of June 30, 2009 as though | ||||||
22 | Public Act 96-889 was approved on that date. | ||||||
23 | (a-5) On or before November 1 of each year, beginning
| ||||||
24 | November 1, 2012, the Board shall submit to the State Actuary,
| ||||||
25 | the Governor, and the General Assembly a proposed certification
| ||||||
26 | of the amount of the required State contribution to the System
|
| |||||||
| |||||||
1 | for the next fiscal year, along with all of the actuarial
| ||||||
2 | assumptions, calculations, and data upon which that proposed
| ||||||
3 | certification is based. On or before January 1 of each year,
| ||||||
4 | beginning January 1, 2013, the State Actuary shall issue a
| ||||||
5 | preliminary report concerning the proposed certification and
| ||||||
6 | identifying, if necessary, recommended changes in actuarial
| ||||||
7 | assumptions that the Board must consider before finalizing its
| ||||||
8 | certification of the required State contributions. On or before
| ||||||
9 | January 15, 2013 and each January 15 thereafter, the Board
| ||||||
10 | shall certify to the Governor and the General Assembly the
| ||||||
11 | amount of the required State contribution for the next fiscal
| ||||||
12 | year. The Board's certification must note any deviations from
| ||||||
13 | the State Actuary's recommended changes, the reason or reasons
| ||||||
14 | for not following the State Actuary's recommended changes, and
| ||||||
15 | the fiscal impact of not following the State Actuary's
| ||||||
16 | recommended changes on the required State contribution. | ||||||
17 | (b) Through State fiscal year 1995, the State contributions | ||||||
18 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
19 | the School Code.
| ||||||
20 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
21 | of each month,
or as soon thereafter as may be practicable, the | ||||||
22 | Board shall submit vouchers
for payment of State contributions | ||||||
23 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
24 | required annual State contribution certified under
subsection | ||||||
25 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
26 | 93rd General Assembly
through June 30, 2004, the Board shall |
| |||||||
| |||||||
1 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
2 | excess of the fiscal year 2004
certified contribution amount | ||||||
3 | determined under this Section
after taking into consideration | ||||||
4 | the transfer to the System
under subsection (a) of Section | ||||||
5 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
6 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
7 | funds appropriated to the System for that
fiscal year.
| ||||||
8 | If in any month the amount remaining unexpended from all | ||||||
9 | other appropriations
to the System for the applicable fiscal | ||||||
10 | year (including the appropriations to
the System under Section | ||||||
11 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
12 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
13 | amount
lawfully vouchered under this subsection, the | ||||||
14 | difference shall be paid from the
Common School Fund under the | ||||||
15 | continuing appropriation authority provided in
Section 1.1 of | ||||||
16 | the State Pension Funds Continuing Appropriation Act.
| ||||||
17 | (b-2) Allocations from the Common School Fund apportioned | ||||||
18 | to school
districts not coming under this System shall not be | ||||||
19 | diminished or affected by
the provisions of this Article.
| ||||||
20 | (b-3) For State fiscal years 2012 through 2045, the minimum | ||||||
21 | contribution
to the System to be made by the State for each | ||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||
23 | sufficient to bring the total assets of the
System up to 90% of | ||||||
24 | the total actuarial liabilities of the System by the end of
| ||||||
25 | State fiscal year 2045. In making these determinations, the | ||||||
26 | required State
contribution shall be calculated each year as a |
| |||||||
| |||||||
1 | level percentage of payroll
over the years remaining to and | ||||||
2 | including fiscal year 2045 and shall be
determined under the | ||||||
3 | projected unit credit actuarial cost method.
| ||||||
4 | For State fiscal years 1996 through 2005, the State | ||||||
5 | contribution to the
System, as a percentage of the applicable | ||||||
6 | employee payroll, shall be increased
in equal annual increments | ||||||
7 | so that by State fiscal year 2011, the State is
contributing at | ||||||
8 | the rate required under this Section; except that in the
| ||||||
9 | following specified State fiscal years, the State contribution | ||||||
10 | to the System
shall not be less than the following indicated | ||||||
11 | percentages of the applicable
employee payroll, even if the | ||||||
12 | indicated percentage will produce a State
contribution in | ||||||
13 | excess of the amount otherwise required under this subsection
| ||||||
14 | and subsection (a), and notwithstanding any contrary | ||||||
15 | certification made under
subsection (a-1) before the effective | ||||||
16 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
17 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
18 | 2003; and
13.56% in FY 2004.
| ||||||
19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State
contribution for State fiscal year 2006 is | ||||||
21 | $534,627,700.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total 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 | ||||||
26 | contribution to
the System, as a percentage of the applicable |
| |||||||
| |||||||
1 | employee payroll, shall be
increased in equal annual increments | ||||||
2 | from the required State contribution for State fiscal year | ||||||
3 | 2007, so that by State fiscal year 2011, the
State is | ||||||
4 | contributing at the rate otherwise required under this Section.
| ||||||
5 | Notwithstanding any other provision of this Article, the | ||||||
6 | total required State contribution for State fiscal year 2010 is | ||||||
7 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
8 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
9 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
10 | expenses determined by the System's share of total bond | ||||||
11 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
12 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
13 | due to the issuance of discounted bonds, if applicable. | ||||||
14 | Notwithstanding any other provision of this Article, the
| ||||||
15 | total required State contribution for State fiscal year 2011 is
| ||||||
16 | the amount recertified by the System on or before April 1, 2011 | ||||||
17 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
18 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
19 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
20 | pro rata share of bond sale
expenses determined by the System's | ||||||
21 | share of total bond
proceeds, (ii) any amounts received from | ||||||
22 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
23 | reduction in bond proceeds
due to the issuance of discounted | ||||||
24 | bonds, if applicable. This amount shall include, in addition to | ||||||
25 | the amount certified by the System, an amount necessary to meet | ||||||
26 | employer contributions required by the State as an employer |
| |||||||
| |||||||
1 | under paragraph (e) of this Section, which may also be used by | ||||||
2 | the System for contributions required by paragraph (a) of | ||||||
3 | Section 16-127. | ||||||
4 | Beginning in State fiscal year 2046, the minimum State | ||||||
5 | contribution for
each fiscal year shall be the amount needed to | ||||||
6 | maintain the total assets of
the System at 90% of the total | ||||||
7 | actuarial liabilities of the System.
| ||||||
8 | Amounts received by the System pursuant to Section 25 of | ||||||
9 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
10 | Finance Act in any fiscal year do not reduce and do not | ||||||
11 | constitute payment of any portion of the minimum State | ||||||
12 | contribution required under this Article in that fiscal year. | ||||||
13 | Such amounts shall not reduce, and shall not be included in the | ||||||
14 | calculation of, the required State contributions under this | ||||||
15 | Article in any future year until the System has reached a | ||||||
16 | funding ratio of at least 90%. A reference in this Article to | ||||||
17 | the "required State contribution" or any substantially similar | ||||||
18 | term does not include or apply to any amounts payable to the | ||||||
19 | System under Section 25 of the Budget Stabilization Act. | ||||||
20 | Notwithstanding any other provision of this Section, the | ||||||
21 | required State
contribution for State fiscal year 2005 and for | ||||||
22 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
23 | under this Section and
certified under subsection (a-1), shall | ||||||
24 | not exceed an amount equal to (i) the
amount of the required | ||||||
25 | State contribution that would have been calculated under
this | ||||||
26 | Section for that fiscal year if the System had not received any |
| |||||||
| |||||||
1 | payments
under subsection (d) of Section 7.2 of the General | ||||||
2 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
3 | total debt service payments for that fiscal
year on the bonds | ||||||
4 | issued in fiscal year 2003 for the purposes of that Section | ||||||
5 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
6 | the same as the System's portion of
the total moneys | ||||||
7 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act. In determining this maximum for State | ||||||
9 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
10 | in item (i) shall be increased, as a percentage of the | ||||||
11 | applicable employee payroll, in equal increments calculated | ||||||
12 | from the sum of the required State contribution for State | ||||||
13 | fiscal year 2007 plus the applicable portion of the State's | ||||||
14 | total debt service payments for fiscal year 2007 on the bonds | ||||||
15 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
16 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
17 | 2011, the
State is contributing at the rate otherwise required | ||||||
18 | under this Section.
| ||||||
19 | (c) Payment of the required State contributions and of all | ||||||
20 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
21 | other benefits granted
under or assumed by this System, and all | ||||||
22 | expenses in connection with the
administration and operation | ||||||
23 | thereof, are obligations of the State.
| ||||||
24 | If members are paid from special trust or federal funds | ||||||
25 | which are
administered by the employing unit, whether school | ||||||
26 | district or other
unit, the employing unit shall pay to the |
| |||||||
| |||||||
1 | System from such
funds the full accruing retirement costs based | ||||||
2 | upon that
service, as determined by the System. Employer | ||||||
3 | contributions, based on
salary paid to members from federal | ||||||
4 | funds, may be forwarded by the distributing
agency of the State | ||||||
5 | of Illinois to the System prior to allocation, in an
amount | ||||||
6 | determined in accordance with guidelines established by such
| ||||||
7 | agency and the System.
| ||||||
8 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
9 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
10 | employer's normal cost
of benefits based upon the teacher's | ||||||
11 | service, in addition to
employee contributions, as determined | ||||||
12 | by the System. Such employer
contributions shall be forwarded | ||||||
13 | monthly in accordance with guidelines
established by the | ||||||
14 | System.
| ||||||
15 | However, with respect to benefits granted under Section | ||||||
16 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
17 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
18 | (rather than 20%) of the member's
highest annual salary rate | ||||||
19 | for each year of creditable service granted, and
the employer | ||||||
20 | shall also pay the required employee contribution on behalf of
| ||||||
21 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
22 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
23 | 16-106 who is serving in that capacity
while on leave of | ||||||
24 | absence from another employer under this Article shall not
be | ||||||
25 | considered an employee of the employer from which the teacher | ||||||
26 | is on leave.
|
| |||||||
| |||||||
1 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
2 | shall pay to the System an employer contribution computed as | ||||||
3 | follows:
| ||||||
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.
| ||||||
10 | The school district or other employing unit may pay these | ||||||
11 | employer
contributions out of any source of funding available | ||||||
12 | for that purpose and
shall forward the contributions to the | ||||||
13 | System on the schedule established
for the payment of member | ||||||
14 | contributions.
| ||||||
15 | These employer contributions are intended to offset a | ||||||
16 | portion of the cost
to the System of the increases in | ||||||
17 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
18 | Each employer of teachers is entitled to a credit against | ||||||
19 | the contributions
required under this subsection (e) with | ||||||
20 | respect to salaries paid to teachers
for the period January 1, | ||||||
21 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
22 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
23 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
24 | paid to teachers for that
period.
| ||||||
25 | The additional 1% employee contribution required under | ||||||
26 | Section 16-152 by
this amendatory Act of 1998 is the |
| |||||||
| |||||||
1 | responsibility of the teacher and not the
teacher's employer, | ||||||
2 | unless the employer agrees, through collective bargaining
or | ||||||
3 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
4 | If an employer is required by a contract in effect on May | ||||||
5 | 1, 1998 between the
employer and an employee organization to | ||||||
6 | pay, on behalf of all its full-time
employees
covered by this | ||||||
7 | Article, all mandatory employee contributions required under
| ||||||
8 | this Article, then the employer shall be excused from paying | ||||||
9 | the employer
contribution required under this subsection (e) | ||||||
10 | for the balance of the term
of that contract. The employer and | ||||||
11 | the employee organization shall jointly
certify to the System | ||||||
12 | the existence of the contractual requirement, in such
form as | ||||||
13 | the System may prescribe. This exclusion shall cease upon the
| ||||||
14 | termination, extension, or renewal of the contract at any time | ||||||
15 | after May 1,
1998.
| ||||||
16 | (f) If the amount of a teacher's salary for any school year | ||||||
17 | used to determine final average salary exceeds the member's | ||||||
18 | annual full-time salary rate with the same employer for the | ||||||
19 | previous school year by more than 6%, the teacher's employer | ||||||
20 | shall pay to the System, in addition to all other payments | ||||||
21 | required under this Section and in accordance with guidelines | ||||||
22 | established by the System, the present value of the increase in | ||||||
23 | benefits resulting from the portion of the increase in salary | ||||||
24 | that is in excess of 6%. This present value shall be computed | ||||||
25 | by the System on the basis of the actuarial assumptions and | ||||||
26 | tables used in the most recent actuarial valuation of the |
| |||||||
| |||||||
1 | System that is available at the time of the computation. If a | ||||||
2 | teacher's salary for the 2005-2006 school year is used to | ||||||
3 | determine final average salary under this subsection (f), then | ||||||
4 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
5 | shall apply in calculating whether the increase in his or her | ||||||
6 | salary is in excess of 6%. For the purposes of this Section, | ||||||
7 | change in employment under Section 10-21.12 of the School Code | ||||||
8 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
9 | The System may require the employer to provide any pertinent | ||||||
10 | information or documentation.
The changes made to this | ||||||
11 | subsection (f) by this amendatory Act of the 94th General | ||||||
12 | Assembly apply without regard to whether the teacher was in | ||||||
13 | service on or after its effective date.
| ||||||
14 | Whenever it determines that a payment is or may be required | ||||||
15 | under this subsection, the System shall calculate the amount of | ||||||
16 | the payment and bill the employer for that amount. The bill | ||||||
17 | shall specify the calculations used to determine the amount | ||||||
18 | due. If the employer disputes the amount of the bill, it may, | ||||||
19 | within 30 days after receipt of the bill, apply to the System | ||||||
20 | in writing for a recalculation. The application must specify in | ||||||
21 | detail the grounds of the dispute and, if the employer asserts | ||||||
22 | that the calculation is subject to subsection (g) or (h) of | ||||||
23 | this Section, must include an affidavit setting forth and | ||||||
24 | attesting to all facts within the employer's knowledge that are | ||||||
25 | pertinent to the applicability of that subsection. Upon | ||||||
26 | receiving a timely application for recalculation, the System |
| |||||||
| |||||||
1 | shall review the application and, if appropriate, recalculate | ||||||
2 | the 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 | ||||||
5 | receipt of the bill. If the employer contributions are not paid | ||||||
6 | within 90 days after receipt of the bill, then interest will be | ||||||
7 | charged at a rate equal to the System's annual actuarially | ||||||
8 | assumed rate of return on investment compounded annually from | ||||||
9 | the 91st day after receipt of the bill. Payments must be | ||||||
10 | concluded within 3 years after the employer's receipt of the | ||||||
11 | bill.
| ||||||
12 | (g) This subsection (g) applies only to payments made or | ||||||
13 | salary increases given on or after June 1, 2005 but before July | ||||||
14 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
15 | require the System to refund any payments received before
July | ||||||
16 | 31, 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 | ||||||
19 | under contracts or collective bargaining agreements entered | ||||||
20 | into, 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 | ||||||
23 | teacher at a time when the teacher is 10 or more years from | ||||||
24 | retirement 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 |
| |||||||
| |||||||
1 | overload work, including summer school, when the school | ||||||
2 | district has certified to the System, and the System has | ||||||
3 | approved the certification, that (i) the overload work is for | ||||||
4 | the sole purpose of classroom instruction in excess of the | ||||||
5 | standard number of classes for a full-time teacher in a school | ||||||
6 | district during a school year and (ii) the salary increases are | ||||||
7 | equal to or less than the rate of pay for classroom instruction | ||||||
8 | computed 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 | ||||||
11 | a promotion (i) for which the employee is required to hold a | ||||||
12 | certificate or supervisory endorsement issued by the State | ||||||
13 | Teacher Certification Board that is a different certification | ||||||
14 | or supervisory endorsement than is required for the teacher's | ||||||
15 | previous position and (ii) to a position that has existed and | ||||||
16 | been filled by a member for no less than one complete academic | ||||||
17 | year and the salary increase from the promotion is an increase | ||||||
18 | that results in an amount no greater than the lesser of the | ||||||
19 | average salary paid for other similar positions in the district | ||||||
20 | requiring the same certification or the amount stipulated in | ||||||
21 | the collective bargaining agreement for a similar position | ||||||
22 | requiring 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 | ||||||
25 | the State of Illinois or the State Board of Education over | ||||||
26 | which the employer does not have discretion, notwithstanding |
| |||||||
| |||||||
1 | that the payment is included in the computation of final | ||||||
2 | average salary.
| ||||||
3 | (h) When assessing payment for any amount due under | ||||||
4 | subsection (f), the System shall exclude any salary increase | ||||||
5 | described in subsection (g) of this Section given on or after | ||||||
6 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
7 | collective bargaining agreement entered into, amended, or | ||||||
8 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
9 | Notwithstanding any other provision of this Section, any | ||||||
10 | payments made or salary increases given after June 30, 2014 | ||||||
11 | shall be used in assessing payment for any amount due under | ||||||
12 | subsection (f) of this Section.
| ||||||
13 | (i) The System shall prepare a report and file copies of | ||||||
14 | the report with the Governor and the General Assembly by | ||||||
15 | January 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 |
| |||||||
| |||||||
1 | Act 94-1057.
| ||||||
2 | (j) For purposes of determining the required State | ||||||
3 | contribution to the System, the value of the System's assets | ||||||
4 | shall be equal to the actuarial value of the System's assets, | ||||||
5 | which shall be calculated as follows: | ||||||
6 | As of June 30, 2008, the actuarial value of the System's | ||||||
7 | assets shall be equal to the market value of the assets as of | ||||||
8 | that date. In determining the actuarial value of the System's | ||||||
9 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
10 | gains or losses from investment return incurred in a fiscal | ||||||
11 | year shall be recognized in equal annual amounts over the | ||||||
12 | 5-year period following that fiscal year. | ||||||
13 | (k) For purposes of determining the required State | ||||||
14 | contribution to the system for a particular year, the actuarial | ||||||
15 | value of assets shall be assumed to earn a rate of return equal | ||||||
16 | to the system's actuarially assumed rate of return. | ||||||
17 | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | ||||||
18 | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
19 | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)"; and
| ||||||
20 | on page 213, in line 11, by changing "equitable" to "equitable , | ||||||
21 | but excluding the changes, the impact of changes, and the | ||||||
22 | implementation of the changes set forth in this amendatory Act | ||||||
23 | of the 97th General Assembly ; and | ||||||
24 | on page 223, in line 16, by replacing " 35 through 100, " with |
| |||||||
| |||||||
1 | " 40, 95, 100, "; and
| ||||||
2 | on 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 | ||||||
4 | the other provisions of Section 30 of this Act, are mutually | ||||||
5 | dependent and inseverable. If any of".
|