97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5351

 

Introduced 2/15/2012, by Rep. Bill Mitchell

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-124  from Ch. 108 1/2, par. 2-124
40 ILCS 5/2-134  from Ch. 108 1/2, par. 2-134
40 ILCS 5/14-131
40 ILCS 5/14-135.08  from Ch. 108 1/2, par. 14-135.08
40 ILCS 5/15-155  from Ch. 108 1/2, par. 15-155
40 ILCS 5/15-165  from Ch. 108 1/2, par. 15-165
40 ILCS 5/16-158  from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131  from Ch. 108 1/2, par. 18-131
40 ILCS 5/18-140  from Ch. 108 1/2, par. 18-140

    Amends the Illinois Pension Code. With respect to the 5 State-funded retirement systems, provides that each system's certification of the required State contribution for Fiscal Year 2014 shall include, in addition to the amount otherwise calculated for FY2014, an amount certified by the Board to be necessary to bring the total contributions of the State to the system for Fiscal Years 1996 through 2012 up to the level that would have been contributed if the State had complied throughout that period with the contribution formula as originally enacted in Public Act 88-593, plus an amount representing the system's lost investment earnings resulting from the delayed payment of those contributions. Also includes revisory changes. Effective immediately.


LRB097 16336 EFG 61491 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5351LRB097 16336 EFG 61491 b

1    AN ACT concerning public employe benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 2-124, 2-134, 14-131, 14-135.08, 15-155, 15-165,
616-158, 18-131, and 18-140 as follows:
 
7    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
8    Sec. 2-124. Contributions by State.
9    (a) The State shall make contributions to the System by
10appropriations of amounts which, together with the
11contributions of participants, interest earned on investments,
12and other income will meet the cost of maintaining and
13administering the System on a 90% funded basis in accordance
14with actuarial recommendations.
15    (b) The Board shall determine the amount of State
16contributions required for each fiscal year on the basis of the
17actuarial tables and other assumptions adopted by the Board and
18the prescribed rate of interest, using the formula in
19subsection (c).
20    (c) 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

 

 

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1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    For State fiscal years 1996 through 2005, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10so that by State fiscal year 2011, the State is contributing at
11the rate required under this Section.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2006 is
14$4,157,000.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2007 is
17$5,220,300.
18    For each of State fiscal years 2008 through 2009, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21from the required State contribution for State fiscal year
222007, so that by State fiscal year 2011, the State is
23contributing at the rate otherwise required under this Section.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2010 is
26$10,454,000 and shall be made from the proceeds of bonds sold

 

 

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1in fiscal year 2010 pursuant to Section 7.2 of the General
2Obligation Bond Act, less (i) the pro rata share of bond sale
3expenses determined by the System's share of total bond
4proceeds, (ii) any amounts received from the General Revenue
5Fund in fiscal year 2010, and (iii) any reduction in bond
6proceeds due to the issuance of discounted bonds, if
7applicable.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2011 is
10the amount recertified by the System on or before April 1, 2011
11pursuant to Section 2-134 and shall be made from the proceeds
12of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
13the General Obligation Bond Act, less (i) the pro rata share of
14bond sale expenses determined by the System's share of total
15bond proceeds, (ii) any amounts received from the General
16Revenue Fund in fiscal year 2011, and (iii) any reduction in
17bond proceeds due to the issuance of discounted bonds, if
18applicable.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2014
21shall include, in addition to the amount otherwise calculated
22under this Section for FY2014, the amount certified by the
23Board to be necessary to bring the total contributions of the
24State to the System for Fiscal Years 1996 through 2012 up to
25the level that would have been contributed if the State had
26complied throughout that period with the contribution formula

 

 

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1as originally enacted in Public Act 88-593, plus an amount
2representing the System's lost investment earnings resulting
3from the delayed payment of those contributions.
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 Section 2-134, shall not
24exceed an amount equal to (i) the amount of the required State
25contribution that would have been calculated under this Section
26for 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    (d) For purposes of determining the required State
20contribution to the System, the value of the System's assets
21shall be equal to the actuarial value of the System's assets,
22which shall be calculated as follows:
23    As of June 30, 2008, the actuarial value of the System's
24assets shall be equal to the market value of the assets as of
25that date. In determining the actuarial value of the System's
26assets for fiscal years after June 30, 2008, any actuarial

 

 

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1gains or losses from investment return incurred in a fiscal
2year shall be recognized in equal annual amounts over the
35-year period following that fiscal year.
4    (e) For purposes of determining the required State
5contribution to the system for a particular year, the actuarial
6value of assets shall be assumed to earn a rate of return equal
7to the system's actuarially assumed rate of return.
8(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09;
996-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff.
103-18-11; revised 4-6-11.)
 
11    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
12    Sec. 2-134. To certify required State contributions and
13submit vouchers.
14    (a) The Board shall certify to the Governor on or before
15December 15 of each year the amount of the required State
16contribution to the System for the next fiscal year. The
17certification shall include a copy of the actuarial
18recommendations upon which it is based.
19    On or before May 1, 2004, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2005, taking
22into account the amounts appropriated to and received by the
23System under subsection (d) of Section 7.2 of the General
24Obligation Bond Act.
25    On or before July 1, 2005, the Board shall recalculate and

 

 

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1recertify to the Governor the amount of the required State
2contribution to the System for State fiscal year 2006, taking
3into account the changes in required State contributions made
4by this amendatory Act of the 94th General Assembly.
5    On or before April 1, 2011, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2011, applying
8the changes made by Public Act 96-889 to the System's assets
9and liabilities as of June 30, 2009 as though Public Act 96-889
10was approved on that date.
11    The Board's certification of the required State
12contribution for Fiscal Year 2014 shall include, in addition to
13the amount otherwise calculated under this Section for FY2014,
14an amount determined by the Board to be necessary to bring the
15total contributions of the State to the system for Fiscal Years
161996 through 2012 up to the level that would have been
17contributed if the State had complied with the contribution
18formula as originally enacted in Public Act 88-593, plus an
19amount representing the system's lost investment earnings
20resulting from the delayed payment of those contributions.
21    (b) Beginning in State fiscal year 1996, on or as soon as
22possible after the 15th day of each month the Board shall
23submit vouchers for payment of State contributions to the
24System, in a total monthly amount of one-twelfth of the
25required annual State contribution certified under subsection
26(a). From the effective date of this amendatory Act of the 93rd

 

 

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1General Assembly through June 30, 2004, the Board shall not
2submit vouchers for the remainder of fiscal year 2004 in excess
3of the fiscal year 2004 certified contribution amount
4determined under this Section after taking into consideration
5the transfer to the System under subsection (d) of Section
66z-61 of the State Finance Act. These vouchers shall be paid by
7the State Comptroller and Treasurer by warrants drawn on the
8funds appropriated to the System for that fiscal year. If in
9any month the amount remaining unexpended from all other
10appropriations to the System for the applicable fiscal year
11(including the appropriations to the System under Section 8.12
12of the State Finance Act and Section 1 of the State Pension
13Funds Continuing Appropriation Act) is less than the amount
14lawfully vouchered under this Section, the difference shall be
15paid from the General Revenue Fund under the continuing
16appropriation authority provided in Section 1.1 of the State
17Pension Funds Continuing Appropriation Act.
18    (c) The full amount of any annual appropriation for the
19System for State fiscal year 1995 shall be transferred and made
20available to the System at the beginning of that fiscal year at
21the request of the Board. Any excess funds remaining at the end
22of any fiscal year from appropriations shall be retained by the
23System as a general reserve to meet the System's accrued
24liabilities.
25(Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11;
2696-1511, eff. 1-27-11.)
 

 

 

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1    (40 ILCS 5/14-131)
2    Sec. 14-131. Contributions by State.
3    (a) The State shall make contributions to the System by
4appropriations of amounts which, together with other employer
5contributions from trust, federal, and other funds, employee
6contributions, investment income, and other income, will be
7sufficient to meet the cost of maintaining and administering
8the System on a 90% funded basis in accordance with actuarial
9recommendations.
10    For the purposes of this Section and Section 14-135.08,
11references to State contributions refer only to employer
12contributions and do not include employee contributions that
13are picked up or otherwise paid by the State or a department on
14behalf of the employee.
15    (b) The Board shall determine the total amount of State
16contributions required for each fiscal year on the basis of the
17actuarial tables and other assumptions adopted by the Board,
18using the formula in subsection (e).
19    The Board shall also determine a State contribution rate
20for each fiscal year, expressed as a percentage of payroll,
21based on the total required State contribution for that fiscal
22year (less the amount received by the System from
23appropriations under Section 8.12 of the State Finance Act and
24Section 1 of the State Pension Funds Continuing Appropriation
25Act, if any, for the fiscal year ending on the June 30

 

 

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1immediately preceding the applicable November 15 certification
2deadline), the estimated payroll (including all forms of
3compensation) for personal services rendered by eligible
4employees, and the recommendations of the actuary.
5    For the purposes of this Section and Section 14.1 of the
6State Finance Act, the term "eligible employees" includes
7employees who participate in the System, persons who may elect
8to participate in the System but have not so elected, persons
9who are serving a qualifying period that is required for
10participation, and annuitants employed by a department as
11described in subdivision (a)(1) or (a)(2) of Section 14-111.
12    (c) Contributions shall be made by the several departments
13for each pay period by warrants drawn by the State Comptroller
14against their respective funds or appropriations based upon
15vouchers stating the amount to be so contributed. These amounts
16shall be based on the full rate certified by the Board under
17Section 14-135.08 for that fiscal year. From the effective date
18of this amendatory Act of the 93rd General Assembly through the
19payment of the final payroll from fiscal year 2004
20appropriations, the several departments shall not make
21contributions for the remainder of fiscal year 2004 but shall
22instead make payments as required under subsection (a-1) of
23Section 14.1 of the State Finance Act. The several departments
24shall resume those contributions at the commencement of fiscal
25year 2005.
26    (c-1) Notwithstanding subsection (c) of this Section, for

 

 

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1fiscal years 2010 and 2012 only, contributions by the several
2departments are not required to be made for General Revenue
3Funds payrolls processed by the Comptroller. Payrolls paid by
4the several departments from all other State funds must
5continue to be processed pursuant to subsection (c) of this
6Section.
7    (c-2) For State fiscal years 2010 and 2012 only, on or as
8soon as possible after the 15th day of each month, the Board
9shall submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the fiscal
11year General Revenue Fund contribution as certified by the
12System pursuant to Section 14-135.08 of the Illinois Pension
13Code.
14    (d) If an employee is paid from trust funds or federal
15funds, the department or other employer shall pay employer
16contributions from those funds to the System at the certified
17rate, unless the terms of the trust or the federal-State
18agreement preclude the use of the funds for that purpose, in
19which case the required employer contributions shall be paid by
20the State. From the effective date of this amendatory Act of
21the 93rd General Assembly through the payment of the final
22payroll from fiscal year 2004 appropriations, the department or
23other employer shall not pay contributions for the remainder of
24fiscal year 2004 but shall instead make payments as required
25under subsection (a-1) of Section 14.1 of the State Finance
26Act. The department or other employer shall resume payment of

 

 

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1contributions at the commencement of fiscal year 2005.
2    (e) For State fiscal years 2012 through 2045, the minimum
3contribution to the System to be made by the State for each
4fiscal year shall be an amount determined by the System to be
5sufficient to bring the total assets of the System up to 90% of
6the total actuarial liabilities of the System by the end of
7State fiscal year 2045. In making these determinations, the
8required State contribution shall be calculated each year as a
9level percentage of payroll over the years remaining to and
10including fiscal year 2045 and shall be determined under the
11projected unit credit actuarial cost method.
12    For State fiscal years 1996 through 2005, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15so that by State fiscal year 2011, the State is contributing at
16the rate required under this Section; except that (i) for State
17fiscal year 1998, for all purposes of this Code and any other
18law of this State, the certified percentage of the applicable
19employee payroll shall be 5.052% for employees earning eligible
20creditable service under Section 14-110 and 6.500% for all
21other employees, notwithstanding any contrary certification
22made under Section 14-135.08 before the effective date of this
23amendatory Act of 1997, and (ii) in the following specified
24State fiscal years, the State contribution to the System shall
25not be less than the following indicated percentages of the
26applicable employee payroll, even if the indicated percentage

 

 

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1will produce a State contribution in excess of the amount
2otherwise required under this subsection and subsection (a):
39.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
42002; 10.6% in FY 2003; and 10.8% in FY 2004.
5    Notwithstanding any other provision of this Article, the
6total required State contribution to the System for State
7fiscal year 2006 is $203,783,900.
8    Notwithstanding any other provision of this Article, the
9total required State contribution to the System for State
10fiscal year 2007 is $344,164,400.
11    For each of State fiscal years 2008 through 2009, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14from the required State contribution for State fiscal year
152007, so that by State fiscal year 2011, the State is
16contributing at the rate otherwise required under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State General Revenue Fund contribution for
19State fiscal year 2010 is $723,703,100 and shall be made from
20the proceeds of bonds sold in fiscal year 2010 pursuant to
21Section 7.2 of the General Obligation Bond Act, less (i) the
22pro rata share of bond sale expenses determined by the System's
23share of total bond proceeds, (ii) any amounts received from
24the General Revenue Fund in fiscal year 2010, and (iii) any
25reduction in bond proceeds due to the issuance of discounted
26bonds, if applicable.

 

 

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1    Notwithstanding any other provision of this Article, the
2total required State General Revenue Fund contribution for
3State fiscal year 2011 is the amount recertified by the System
4on or before April 1, 2011 pursuant to Section 14-135.08 and
5shall be made from the proceeds of bonds sold in fiscal year
62011 pursuant to Section 7.2 of the General Obligation Bond
7Act, less (i) the pro rata share of bond sale expenses
8determined by the System's share of total bond proceeds, (ii)
9any amounts received from the General Revenue Fund in fiscal
10year 2011, and (iii) any reduction in bond proceeds due to the
11issuance of discounted bonds, if applicable.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2014
14shall include, in addition to the amount otherwise calculated
15under this Section for FY2014, the amount certified by the
16Board to be necessary to bring the total contributions of the
17State to the System for Fiscal Years 1996 through 2012 up to
18the level that would have been contributed if the State had
19complied throughout that period with the contribution formula
20as originally enacted in Public Act 88-593, plus an amount
21representing the System's lost investment earnings resulting
22from the delayed payment of those contributions.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 90% of the total
26actuarial liabilities of the System.

 

 

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1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 90%. A reference in this Article to
10the "required State contribution" or any substantially similar
11term does not include or apply to any amounts payable to the
12System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Section, the
14required State contribution for State fiscal year 2005 and for
15fiscal year 2008 and each fiscal year thereafter, as calculated
16under this Section and certified under Section 14-135.08, shall
17not exceed an amount equal to (i) the amount of the required
18State contribution that would have been calculated under this
19Section for that fiscal year if the System had not received any
20payments under subsection (d) of Section 7.2 of the General
21Obligation Bond Act, minus (ii) the portion of the State's
22total debt service payments for that fiscal year on the bonds
23issued in fiscal year 2003 for the purposes of that Section
247.2, as determined and certified by the Comptroller, that is
25the same as the System's portion of the total moneys
26distributed under subsection (d) of Section 7.2 of the General

 

 

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1Obligation Bond Act. In determining this maximum for State
2fiscal years 2008 through 2010, however, the amount referred to
3in item (i) shall be increased, as a percentage of the
4applicable employee payroll, in equal increments calculated
5from the sum of the required State contribution for State
6fiscal year 2007 plus the applicable portion of the State's
7total debt service payments for fiscal year 2007 on the bonds
8issued in fiscal year 2003 for the purposes of Section 7.2 of
9the General Obligation Bond Act, so that, by State fiscal year
102011, the State is contributing at the rate otherwise required
11under this Section.
12    (f) After the submission of all payments for eligible
13employees from personal services line items in fiscal year 2004
14have been made, the Comptroller shall provide to the System a
15certification of the sum of all fiscal year 2004 expenditures
16for personal services that would have been covered by payments
17to the System under this Section if the provisions of this
18amendatory Act of the 93rd General Assembly had not been
19enacted. Upon receipt of the certification, the System shall
20determine the amount due to the System based on the full rate
21certified by the Board under Section 14-135.08 for fiscal year
222004 in order to meet the State's obligation under this
23Section. The System shall compare this amount due to the amount
24received by the System in fiscal year 2004 through payments
25under this Section and under Section 6z-61 of the State Finance
26Act. If the amount due is more than the amount received, the

 

 

HB5351- 17 -LRB097 16336 EFG 61491 b

1difference shall be termed the "Fiscal Year 2004 Shortfall" for
2purposes of this Section, and the Fiscal Year 2004 Shortfall
3shall be satisfied under Section 1.2 of the State Pension Funds
4Continuing Appropriation Act. If the amount due is less than
5the amount received, the difference shall be termed the "Fiscal
6Year 2004 Overpayment" for purposes of this Section, and the
7Fiscal Year 2004 Overpayment shall be repaid by the System to
8the Pension Contribution Fund as soon as practicable after the
9certification.
10    (g) For purposes of determining the required State
11contribution to the System, the value of the System's assets
12shall be equal to the actuarial value of the System's assets,
13which shall be calculated as follows:
14    As of June 30, 2008, the actuarial value of the System's
15assets shall be equal to the market value of the assets as of
16that date. In determining the actuarial value of the System's
17assets for fiscal years after June 30, 2008, any actuarial
18gains or losses from investment return incurred in a fiscal
19year shall be recognized in equal annual amounts over the
205-year period following that fiscal year.
21    (h) For purposes of determining the required State
22contribution to the System for a particular year, the actuarial
23value of assets shall be assumed to earn a rate of return equal
24to the System's actuarially assumed rate of return.
25    (i) After the submission of all payments for eligible
26employees from personal services line items paid from the

 

 

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1General Revenue Fund in fiscal year 2010 have been made, the
2Comptroller shall provide to the System a certification of the
3sum of all fiscal year 2010 expenditures for personal services
4that would have been covered by payments to the System under
5this Section if the provisions of this amendatory Act of the
696th General Assembly had not been enacted. Upon receipt of the
7certification, the System shall determine the amount due to the
8System based on the full rate certified by the Board under
9Section 14-135.08 for fiscal year 2010 in order to meet the
10State's obligation under this Section. The System shall compare
11this amount due to the amount received by the System in fiscal
12year 2010 through payments under this Section. If the amount
13due is more than the amount received, the difference shall be
14termed the "Fiscal Year 2010 Shortfall" for purposes of this
15Section, and the Fiscal Year 2010 Shortfall shall be satisfied
16under Section 1.2 of the State Pension Funds Continuing
17Appropriation Act. If the amount due is less than the amount
18received, the difference shall be termed the "Fiscal Year 2010
19Overpayment" for purposes of this Section, and the Fiscal Year
202010 Overpayment shall be repaid by the System to the General
21Revenue Fund as soon as practicable after the certification.
22    (j) After the submission of all payments for eligible
23employees from personal services line items paid from the
24General Revenue Fund in fiscal year 2011 have been made, the
25Comptroller shall provide to the System a certification of the
26sum of all fiscal year 2011 expenditures for personal services

 

 

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1that would have been covered by payments to the System under
2this Section if the provisions of this amendatory Act of the
396th General Assembly had not been enacted. Upon receipt of the
4certification, the System shall determine the amount due to the
5System based on the full rate certified by the Board under
6Section 14-135.08 for fiscal year 2011 in order to meet the
7State's obligation under this Section. The System shall compare
8this amount due to the amount received by the System in fiscal
9year 2011 through payments under this Section. If the amount
10due is more than the amount received, the difference shall be
11termed the "Fiscal Year 2011 Shortfall" for purposes of this
12Section, and the Fiscal Year 2011 Shortfall shall be satisfied
13under Section 1.2 of the State Pension Funds Continuing
14Appropriation Act. If the amount due is less than the amount
15received, the difference shall be termed the "Fiscal Year 2011
16Overpayment" for purposes of this Section, and the Fiscal Year
172011 Overpayment shall be repaid by the System to the General
18Revenue Fund as soon as practicable after the certification.
19    (k) For fiscal year 2012 only, after the submission of all
20payments for eligible employees from personal services line
21items paid from the General Revenue Fund in the fiscal year
22have been made, the Comptroller shall provide to the System a
23certification of the sum of all expenditures in the fiscal year
24for personal services. Upon receipt of the certification, the
25System shall determine the amount due to the System based on
26the full rate certified by the Board under Section 14-135.08

 

 

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1for the fiscal year in order to meet the State's obligation
2under this Section. The System shall compare this amount due to
3the amount received by the System for the fiscal year. If the
4amount due is more than the amount received, the difference
5shall be termed the "Fiscal Year Shortfall" for purposes of
6this Section, and the Fiscal Year Shortfall shall be satisfied
7under Section 1.2 of the State Pension Funds Continuing
8Appropriation Act. If the amount due is less than the amount
9received, the difference shall be termed the "Fiscal Year
10Overpayment" for purposes of this Section, and the Fiscal Year
11Overpayment shall be repaid by the System to the General
12Revenue Fund as soon as practicable after the certification.
13(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
1496-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
151-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11.)
 
16    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
17    Sec. 14-135.08. To certify required State contributions.
18    (a) To certify to the Governor and to each department, on
19or before November 15 of each year, the required rate for State
20contributions to the System for the next State fiscal year, as
21determined under subsection (b) of Section 14-131. The
22certification to the Governor shall include a copy of the
23actuarial recommendations upon which the rate is based.
24    (b) The certification shall include an additional amount
25necessary to pay all principal of and interest on those general

 

 

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1obligation bonds due the next fiscal year authorized by Section
27.2(a) of the General Obligation Bond Act and issued to provide
3the proceeds deposited by the State with the System in July
42003, representing deposits other than amounts reserved under
5Section 7.2(c) of the General Obligation Bond Act. For State
6fiscal year 2005, the Board shall make a supplemental
7certification of the additional amount necessary to pay all
8principal of and interest on those general obligation bonds due
9in State fiscal years 2004 and 2005 authorized by Section
107.2(a) of the General Obligation Bond Act and issued to provide
11the proceeds deposited by the State with the System in July
122003, representing deposits other than amounts reserved under
13Section 7.2(c) of the General Obligation Bond Act, as soon as
14practical after the effective date of this amendatory Act of
15the 93rd General Assembly.
16    On or before May 1, 2004, the Board shall recalculate and
17recertify to the Governor and to each department the amount of
18the required State contribution to the System and the required
19rates for State contributions to the System for State fiscal
20year 2005, taking into account the amounts appropriated to and
21received by the System under subsection (d) of Section 7.2 of
22the General Obligation Bond Act.
23    On or before July 1, 2005, the Board shall recalculate and
24recertify to the Governor and to each department the amount of
25the required State contribution to the System and the required
26rates for State contributions to the System for State fiscal

 

 

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1year 2006, taking into account the changes in required State
2contributions made by this amendatory Act of the 94th General
3Assembly.
4    On or before April 1, 2011, the Board shall recalculate and
5recertify to the Governor and to each department the amount of
6the required State contribution to the System for State fiscal
7year 2011, applying the changes made by Public Act 96-889 to
8the System's assets and liabilities as of June 30, 2009 as
9though Public Act 96-889 was approved on that date.
10    The Board's certification of the required State
11contribution for Fiscal Year 2014 shall include, in addition to
12the amount otherwise calculated under this Section for FY2014,
13an amount determined by the Board to be necessary to bring the
14total contributions of the State to the system for Fiscal Years
151996 through 2012 up to the level that would have been
16contributed if the State had complied with the contribution
17formula as originally enacted in Public Act 88-593, plus an
18amount representing the system's lost investment earnings
19resulting from the delayed payment of those contributions.
20(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
21    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
22    Sec. 15-155. Employer contributions.
23    (a) The State of Illinois shall make contributions by
24appropriations of amounts which, together with the other
25employer contributions from trust, federal, and other funds,

 

 

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1employee contributions, income from investments, and other
2income of this System, will be sufficient to meet the cost of
3maintaining and administering the System on a 90% funded basis
4in accordance with actuarial recommendations.
5    The Board shall determine the amount of State contributions
6required for each fiscal year on the basis of the actuarial
7tables and other assumptions adopted by the Board and the
8recommendations of the actuary, using the formula in subsection
9(a-1).
10    (a-1) For State fiscal years 2012 through 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2006 is

 

 

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1$166,641,900.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2007 is
4$252,064,100.
5    For each of State fiscal years 2008 through 2009, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8from the required State contribution for State fiscal year
92007, so that by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2010 is
13$702,514,000 and shall be made from the State Pensions Fund and
14proceeds of bonds sold in fiscal year 2010 pursuant to Section
157.2 of the General Obligation Bond Act, less (i) the pro rata
16share of bond sale expenses determined by the System's share of
17total bond proceeds, (ii) any amounts received from the General
18Revenue Fund in fiscal year 2010, (iii) any reduction in bond
19proceeds due to the issuance of discounted bonds, if
20applicable.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2011 is
23the amount recertified by the System on or before April 1, 2011
24pursuant to Section 15-165 and shall be made from the State
25Pensions Fund and proceeds of bonds sold in fiscal year 2011
26pursuant to Section 7.2 of the General Obligation Bond Act,

 

 

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1less (i) the pro rata share of bond sale expenses determined by
2the System's share of total bond proceeds, (ii) any amounts
3received from the General Revenue Fund in fiscal year 2011, and
4(iii) any reduction in bond proceeds due to the issuance of
5discounted bonds, if applicable.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2014
8shall include, in addition to the amount otherwise calculated
9under this Section for FY2014, the amount certified by the
10Board to be necessary to bring the total contributions of the
11State to the System for Fiscal Years 1996 through 2012 up to
12the level that would have been contributed if the State had
13complied throughout that period with the contribution formula
14as originally enacted in Public Act 88-593, plus an amount
15representing the System's lost investment earnings resulting
16from the delayed payment of those contributions.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under Section 15-165, shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

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1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (b) If an employee is paid from trust or federal funds, the
7employer shall pay to the Board contributions from those funds
8which are sufficient to cover the accruing normal costs on
9behalf of the employee. However, universities having employees
10who are compensated out of local auxiliary funds, income funds,
11or service enterprise funds are not required to pay such
12contributions on behalf of those employees. The local auxiliary
13funds, income funds, and service enterprise funds of
14universities shall not be considered trust funds for the
15purpose of this Article, but funds of alumni associations,
16foundations, and athletic associations which are affiliated
17with the universities included as employers under this Article
18and other employers which do not receive State appropriations
19are considered to be trust funds for the purpose of this
20Article.
21    (b-1) The City of Urbana and the City of Champaign shall
22each make employer contributions to this System for their
23respective firefighter employees who participate in this
24System pursuant to subsection (h) of Section 15-107. The rate
25of contributions to be made by those municipalities shall be
26determined annually by the Board on the basis of the actuarial

 

 

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1assumptions adopted by the Board and the recommendations of the
2actuary, and shall be expressed as a percentage of salary for
3each such employee. The Board shall certify the rate to the
4affected municipalities as soon as may be practical. The
5employer contributions required under this subsection shall be
6remitted by the municipality to the System at the same time and
7in the same manner as employee contributions.
8    (c) Through State fiscal year 1995: The total employer
9contribution shall be apportioned among the various funds of
10the State and other employers, whether trust, federal, or other
11funds, in accordance with actuarial procedures approved by the
12Board. State of Illinois contributions for employers receiving
13State appropriations for personal services shall be payable
14from appropriations made to the employers or to the System. The
15contributions for Class I community colleges covering earnings
16other than those paid from trust and federal funds, shall be
17payable solely from appropriations to the Illinois Community
18College Board or the System for employer contributions.
19    (d) Beginning in State fiscal year 1996, the required State
20contributions to the System shall be appropriated directly to
21the System and shall be payable through vouchers issued in
22accordance with subsection (c) of Section 15-165, except as
23provided in subsection (g).
24    (e) The State Comptroller shall draw warrants payable to
25the System upon proper certification by the System or by the
26employer in accordance with the appropriation laws and this

 

 

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1Code.
2    (f) Normal costs under this Section means liability for
3pensions and other benefits which accrues to the System because
4of the credits earned for service rendered by the participants
5during the fiscal year and expenses of administering the
6System, but shall not include the principal of or any
7redemption premium or interest on any bonds issued by the Board
8or any expenses incurred or deposits required in connection
9therewith.
10    (g) If the amount of a participant's earnings for any
11academic year used to determine the final rate of earnings,
12determined on a full-time equivalent basis, exceeds the amount
13of his or her earnings with the same employer for the previous
14academic year, determined on a full-time equivalent basis, by
15more than 6%, the participant's employer shall pay to the
16System, in addition to all other payments required under this
17Section and in accordance with guidelines established by the
18System, the present value of the increase in benefits resulting
19from the portion of the increase in earnings that is in excess
20of 6%. This present value shall be computed by the System on
21the basis of the actuarial assumptions and tables used in the
22most recent actuarial valuation of the System that is available
23at the time of the computation. The System may require the
24employer to provide any pertinent information or
25documentation.
26    Whenever it determines that a payment is or may be required

 

 

HB5351- 30 -LRB097 16336 EFG 61491 b

1under this subsection (g), the System shall calculate the
2amount of the payment and bill the employer for that amount.
3The bill shall specify the calculations used to determine the
4amount due. If the employer disputes the amount of the bill, it
5may, within 30 days after receipt of the bill, apply to the
6System in writing for a recalculation. The application must
7specify in detail the grounds of the dispute and, if the
8employer asserts that the calculation is subject to subsection
9(h) or (i) of this Section, must include an affidavit setting
10forth and attesting to all facts within the employer's
11knowledge that are pertinent to the applicability of subsection
12(h) or (i). Upon receiving a timely application for
13recalculation, the System shall review the application and, if
14appropriate, recalculate the amount due.
15    The employer contributions required under this subsection
16(f) may be paid in the form of a lump sum within 90 days after
17receipt of the bill. If the employer contributions are not paid
18within 90 days after receipt of the bill, then interest will be
19charged at a rate equal to the System's annual actuarially
20assumed rate of return on investment compounded annually from
21the 91st day after receipt of the bill. Payments must be
22concluded within 3 years after the employer's receipt of the
23bill.
24    (h) This subsection (h) applies only to payments made or
25salary increases given on or after June 1, 2005 but before July
261, 2011. The changes made by Public Act 94-1057 shall not

 

 

HB5351- 31 -LRB097 16336 EFG 61491 b

1require the System to refund any payments received before July
231, 2006 (the effective date of Public Act 94-1057).
3    When assessing payment for any amount due under subsection
4(g), the System shall exclude earnings increases paid to
5participants under contracts or collective bargaining
6agreements entered into, amended, or renewed before June 1,
72005.
8    When assessing payment for any amount due under subsection
9(g), the System shall exclude earnings increases paid to a
10participant at a time when the participant is 10 or more years
11from retirement eligibility under Section 15-135.
12    When assessing payment for any amount due under subsection
13(g), the System shall exclude earnings increases resulting from
14overload work, including a contract for summer teaching, or
15overtime when the employer has certified to the System, and the
16System has approved the certification, that: (i) in the case of
17overloads (A) the overload work is for the sole purpose of
18academic instruction in excess of the standard number of
19instruction hours for a full-time employee occurring during the
20academic year that the overload is paid and (B) the earnings
21increases are equal to or less than the rate of pay for
22academic instruction computed using the participant's current
23salary rate and work schedule; and (ii) in the case of
24overtime, the overtime was necessary for the educational
25mission.
26    When assessing payment for any amount due under subsection

 

 

HB5351- 32 -LRB097 16336 EFG 61491 b

1(g), the System shall exclude any earnings increase resulting
2from (i) a promotion for which the employee moves from one
3classification to a higher classification under the State
4Universities Civil Service System, (ii) a promotion in academic
5rank for a tenured or tenure-track faculty position, or (iii) a
6promotion that the Illinois Community College Board has
7recommended in accordance with subsection (k) of this Section.
8These earnings increases shall be excluded only if the
9promotion is to a position that has existed and been filled by
10a member for no less than one complete academic year and the
11earnings increase as a result of the promotion is an increase
12that results in an amount no greater than the average salary
13paid for other similar positions.
14    (i) When assessing payment for any amount due under
15subsection (g), the System shall exclude any salary increase
16described in subsection (h) of this Section given on or after
17July 1, 2011 but before July 1, 2014 under a contract or
18collective bargaining agreement entered into, amended, or
19renewed on or after June 1, 2005 but before July 1, 2011.
20Notwithstanding any other provision of this Section, any
21payments made or salary increases given after June 30, 2014
22shall be used in assessing payment for any amount due under
23subsection (g) of this Section.
24    (j) The System shall prepare a report and file copies of
25the report with the Governor and the General Assembly by
26January 1, 2007 that contains all of the following information:

 

 

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1        (1) The number of recalculations required by the
2    changes made to this Section by Public Act 94-1057 for each
3    employer.
4        (2) The dollar amount by which each employer's
5    contribution to the System was changed due to
6    recalculations required by Public Act 94-1057.
7        (3) The total amount the System received from each
8    employer as a result of the changes made to this Section by
9    Public Act 94-4.
10        (4) The increase in the required State contribution
11    resulting from the changes made to this Section by Public
12    Act 94-1057.
13    (k) The Illinois Community College Board shall adopt rules
14for recommending lists of promotional positions submitted to
15the Board by community colleges and for reviewing the
16promotional lists on an annual basis. When recommending
17promotional lists, the Board shall consider the similarity of
18the positions submitted to those positions recognized for State
19universities by the State Universities Civil Service System.
20The Illinois Community College Board shall file a copy of its
21findings with the System. The System shall consider the
22findings of the Illinois Community College Board when making
23determinations under this Section. The System shall not exclude
24any earnings increases resulting from a promotion when the
25promotion was not submitted by a community college. Nothing in
26this subsection (k) shall require any community college to

 

 

HB5351- 34 -LRB097 16336 EFG 61491 b

1submit any information to the Community College Board.
2    (l) 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    (m) 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.)
 
20    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
21    Sec. 15-165. To certify amounts and submit vouchers.
22    (a) The Board shall certify to the Governor on or before
23November 15 of each year the appropriation required from State
24funds for the purposes of this System for the following fiscal
25year. The certification shall include a copy of the actuarial

 

 

HB5351- 35 -LRB097 16336 EFG 61491 b

1recommendations upon which it is based.
2    On or before May 1, 2004, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2005, taking
5into account the amounts appropriated to and received by the
6System under subsection (d) of Section 7.2 of the General
7Obligation Bond Act.
8    On or before July 1, 2005, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2006, taking
11into account the changes in required State contributions made
12by this amendatory Act of the 94th General Assembly.
13    On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2011, applying
16the changes made by Public Act 96-889 to the System's assets
17and liabilities as of June 30, 2009 as though Public Act 96-889
18was approved on that date.
19    The Board's certification of the required State
20contribution for Fiscal Year 2014 shall include, in addition to
21the amount otherwise calculated under this Section for FY2014,
22an amount determined by the Board to be necessary to bring the
23total contributions of the State to the system for Fiscal Years
241996 through 2012 up to the level that would have been
25contributed if the State had complied with the contribution
26formula as originally enacted in Public Act 88-593, plus an

 

 

HB5351- 36 -LRB097 16336 EFG 61491 b

1amount representing the system's lost investment earnings
2resulting from the delayed payment of those contributions.
3    (b) The Board shall certify to the State Comptroller or
4employer, as the case may be, from time to time, by its
5president and secretary, with its seal attached, the amounts
6payable to the System from the various funds.
7    (c) Beginning in State fiscal year 1996, on or as soon as
8possible after the 15th day of each month the Board shall
9submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the
11required annual State contribution certified under subsection
12(a). From the effective date of this amendatory Act of the 93rd
13General Assembly through June 30, 2004, the Board shall not
14submit vouchers for the remainder of fiscal year 2004 in excess
15of the fiscal year 2004 certified contribution amount
16determined under this Section after taking into consideration
17the transfer to the System under subsection (b) of Section
186z-61 of the State Finance Act. These vouchers shall be paid by
19the State Comptroller and Treasurer by warrants drawn on the
20funds appropriated to the System for that fiscal year.
21    If in any month the amount remaining unexpended from all
22other appropriations to the System for the applicable fiscal
23year (including the appropriations to the System under Section
248.12 of the State Finance Act and Section 1 of the State
25Pension Funds Continuing Appropriation Act) is less than the
26amount lawfully vouchered under this Section, the difference

 

 

HB5351- 37 -LRB097 16336 EFG 61491 b

1shall be paid from the General Revenue Fund under the
2continuing appropriation authority provided in Section 1.1 of
3the State Pension Funds Continuing Appropriation Act.
4    (d) So long as the payments received are the full amount
5lawfully vouchered under this Section, payments received by the
6System under this Section shall be applied first toward the
7employer contribution to the self-managed plan established
8under Section 15-158.2. Payments shall be applied second toward
9the employer's portion of the normal costs of the System, as
10defined in subsection (f) of Section 15-155. The balance shall
11be applied toward the unfunded actuarial liabilities of the
12System.
13    (e) In the event that the System does not receive, as a
14result of legislative enactment or otherwise, payments
15sufficient to fully fund the employer contribution to the
16self-managed plan established under Section 15-158.2 and to
17fully fund that portion of the employer's portion of the normal
18costs of the System, as calculated in accordance with Section
1915-155(a-1), then any payments received shall be applied
20proportionately to the optional retirement program established
21under Section 15-158.2 and to the employer's portion of the
22normal costs of the System, as calculated in accordance with
23Section 15-155(a-1).
24(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
25    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)

 

 

HB5351- 38 -LRB097 16336 EFG 61491 b

1    Sec. 16-158. Contributions by State and other employing
2units.
3    (a) The State shall make contributions to the System by
4means of appropriations from the Common School Fund and other
5State funds of amounts which, together with other employer
6contributions, employee contributions, investment income, and
7other income, will be sufficient to meet the cost of
8maintaining and administering the System on a 90% funded basis
9in accordance with actuarial recommendations.
10    The Board shall determine the amount of State contributions
11required for each fiscal year on the basis of the actuarial
12tables and other assumptions adopted by the Board and the
13recommendations of the actuary, using the formula in subsection
14(b-3).
15    (a-1) Annually, on or before November 15, the Board shall
16certify to the Governor the amount of the required State
17contribution for the coming fiscal year. The certification
18shall include a copy of the actuarial recommendations upon
19which it is based.
20    On or before May 1, 2004, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2005, taking
23into account the amounts appropriated to and received by the
24System under subsection (d) of Section 7.2 of the General
25Obligation Bond Act.
26    On or before July 1, 2005 April 1, 2011, the Board shall

 

 

HB5351- 39 -LRB097 16336 EFG 61491 b

1recalculate and recertify to the Governor the amount of the
2required State contribution to the System for State fiscal year
32006, taking into account the changes in required State
4contributions made by this amendatory Act of the 94th General
5Assembly.
6    On or before April 1, 2011 June 15, 2010, the Board shall
7recalculate and recertify to the Governor the amount of the
8required State contribution to the System for State fiscal year
92011, applying the changes made by Public Act 96-889 to the
10System's assets and liabilities as of June 30, 2009 as though
11Public Act 96-889 was approved on that date.
12    The Board's certification of the required State
13contribution for Fiscal Year 2014 shall include, in addition to
14the amount otherwise calculated under this Section for FY2014,
15an amount determined by the Board to be necessary to bring the
16total contributions of the State to the system for Fiscal Years
171996 through 2012 up to the level that would have been
18contributed if the State had complied with the contribution
19formula as originally enacted in Public Act 88-593, plus an
20amount representing the system's lost investment earnings
21resulting from the delayed payment of those contributions.
22    (b) Through State fiscal year 1995, the State contributions
23shall be paid to the System in accordance with Section 18-7 of
24the School Code.
25    (b-1) Beginning in State fiscal year 1996, on the 15th day
26of each month, or as soon thereafter as may be practicable, the

 

 

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1Board shall submit vouchers for payment of State contributions
2to the System, in a total monthly amount of one-twelfth of the
3required annual State contribution certified under subsection
4(a-1). From the effective date of this amendatory Act of the
593rd General Assembly through June 30, 2004, the Board shall
6not submit vouchers for the remainder of fiscal year 2004 in
7excess of the fiscal year 2004 certified contribution amount
8determined under this Section after taking into consideration
9the transfer to the System under subsection (a) of Section
106z-61 of the State Finance Act. These vouchers shall be paid by
11the State Comptroller and Treasurer by warrants drawn on the
12funds appropriated to the System for that fiscal year.
13    If in any month the amount remaining unexpended from all
14other appropriations to the System for the applicable fiscal
15year (including the appropriations to the System under Section
168.12 of the State Finance Act and Section 1 of the State
17Pension Funds Continuing Appropriation Act) is less than the
18amount lawfully vouchered under this subsection, the
19difference shall be paid from the Common School Fund under the
20continuing appropriation authority provided in Section 1.1 of
21the State Pension Funds Continuing Appropriation Act.
22    (b-2) Allocations from the Common School Fund apportioned
23to school districts not coming under this System shall not be
24diminished or affected by the provisions of this Article.
25    (b-3) For State fiscal years 2012 through 2045, the minimum
26contribution to the System to be made by the State for each

 

 

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1fiscal year shall be an amount determined by the System to be
2sufficient to bring the total assets of the System up to 90% of
3the total actuarial liabilities of the System by the end of
4State fiscal year 2045. In making these determinations, the
5required State contribution shall be calculated each year as a
6level percentage of payroll over the years remaining to and
7including fiscal year 2045 and shall be determined under the
8projected unit credit actuarial cost method.
9    For State fiscal years 1996 through 2005, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12so that by State fiscal year 2011, the State is contributing at
13the rate required under this Section; except that in the
14following specified State fiscal years, the State contribution
15to the System shall not be less than the following indicated
16percentages of the applicable employee payroll, even if the
17indicated percentage will produce a State contribution in
18excess of the amount otherwise required under this subsection
19and subsection (a), and notwithstanding any contrary
20certification made under subsection (a-1) before the effective
21date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
22in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
232003; and 13.56% in FY 2004.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2006 is
26$534,627,700.

 

 

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1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2007 is
3$738,014,500.
4    For each of State fiscal years 2008 through 2009, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7from the required State contribution for State fiscal year
82007, so that by State fiscal year 2011, the State is
9contributing at the rate otherwise required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2010 is
12$2,089,268,000 and shall be made from the proceeds of bonds
13sold in fiscal year 2010 pursuant to Section 7.2 of the General
14Obligation Bond Act, less (i) the pro rata share of bond sale
15expenses determined by the System's share of total bond
16proceeds, (ii) any amounts received from the Common School Fund
17in fiscal year 2010, and (iii) any reduction in bond proceeds
18due to the issuance of discounted bonds, if applicable.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2011 is
21the amount recertified by the System on or before April 1, 2011
22pursuant to subsection (a-1) of this Section and shall be made
23from the proceeds of bonds sold in fiscal year 2011 pursuant to
24Section 7.2 of the General Obligation Bond Act, less (i) the
25pro rata share of bond sale expenses determined by the System's
26share of total bond proceeds, (ii) any amounts received from

 

 

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1the Common School Fund in fiscal year 2011, and (iii) any
2reduction in bond proceeds due to the issuance of discounted
3bonds, if applicable. This amount shall include, in addition to
4the amount certified by the System, an amount necessary to meet
5employer contributions required by the State as an employer
6under paragraph (e) of this Section, which may also be used by
7the System for contributions required by paragraph (a) of
8Section 16-127.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2014
11shall include, in addition to the amount otherwise calculated
12under this Section for FY2014, the amount certified by the
13Board to be necessary to bring the total contributions of the
14State to the System for Fiscal Years 1996 through 2012 up to
15the level that would have been contributed if the State had
16complied throughout that period with the contribution formula
17as originally enacted in Public Act 88-593, plus an amount
18representing the System's lost investment earnings resulting
19from the delayed payment of those contributions.
20    Beginning in State fiscal year 2046, the minimum State
21contribution for each fiscal year shall be the amount needed to
22maintain the total assets of the System at 90% of the total
23actuarial liabilities of the System.
24    Amounts received by the System pursuant to Section 25 of
25the Budget Stabilization Act or Section 8.12 of the State
26Finance Act in any fiscal year do not reduce and do not

 

 

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1constitute payment of any portion of the minimum State
2contribution required under this Article in that fiscal year.
3Such amounts shall not reduce, and shall not be included in the
4calculation of, the required State contributions under this
5Article in any future year until the System has reached a
6funding ratio of at least 90%. A reference in this Article to
7the "required State contribution" or any substantially similar
8term does not include or apply to any amounts payable to the
9System under Section 25 of the Budget Stabilization Act.
10    Notwithstanding any other provision of this Section, the
11required State contribution for State fiscal year 2005 and for
12fiscal year 2008 and each fiscal year thereafter, as calculated
13under this Section and certified under subsection (a-1), shall
14not exceed an amount equal to (i) the amount of the required
15State contribution that would have been calculated under this
16Section for that fiscal year if the System had not received any
17payments under subsection (d) of Section 7.2 of the General
18Obligation Bond Act, minus (ii) the portion of the State's
19total debt service payments for that fiscal year on the bonds
20issued in fiscal year 2003 for the purposes of that Section
217.2, as determined and certified by the Comptroller, that is
22the same as the System's portion of the total moneys
23distributed under subsection (d) of Section 7.2 of the General
24Obligation Bond Act. In determining this maximum for State
25fiscal years 2008 through 2010, however, the amount referred to
26in item (i) shall be increased, as a percentage of the

 

 

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1applicable employee payroll, in equal increments calculated
2from the sum of the required State contribution for State
3fiscal year 2007 plus the applicable portion of the State's
4total debt service payments for fiscal year 2007 on the bonds
5issued in fiscal year 2003 for the purposes of Section 7.2 of
6the General Obligation Bond Act, so that, by State fiscal year
72011, the State is contributing at the rate otherwise required
8under this Section.
9    (c) Payment of the required State contributions and of all
10pensions, retirement annuities, death benefits, refunds, and
11other benefits granted under or assumed by this System, and all
12expenses in connection with the administration and operation
13thereof, are obligations of the State.
14    If members are paid from special trust or federal funds
15which are administered by the employing unit, whether school
16district or other unit, the employing unit shall pay to the
17System from such funds the full accruing retirement costs based
18upon that service, as determined by the System. Employer
19contributions, based on salary paid to members from federal
20funds, may be forwarded by the distributing agency of the State
21of Illinois to the System prior to allocation, in an amount
22determined in accordance with guidelines established by such
23agency and the System.
24    (d) Effective July 1, 1986, any employer of a teacher as
25defined in paragraph (8) of Section 16-106 shall pay the
26employer's normal cost of benefits based upon the teacher's

 

 

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1service, in addition to employee contributions, as determined
2by the System. Such employer contributions shall be forwarded
3monthly in accordance with guidelines established by the
4System.
5    However, with respect to benefits granted under Section
616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
7of Section 16-106, the employer's contribution shall be 12%
8(rather than 20%) of the member's highest annual salary rate
9for each year of creditable service granted, and the employer
10shall also pay the required employee contribution on behalf of
11the teacher. For the purposes of Sections 16-133.4 and
1216-133.5, a teacher as defined in paragraph (8) of Section
1316-106 who is serving in that capacity while on leave of
14absence from another employer under this Article shall not be
15considered an employee of the employer from which the teacher
16is on leave.
17    (e) Beginning July 1, 1998, every employer of a teacher
18shall pay to the System an employer contribution computed as
19follows:
20        (1) Beginning July 1, 1998 through June 30, 1999, the
21    employer contribution shall be equal to 0.3% of each
22    teacher's salary.
23        (2) Beginning July 1, 1999 and thereafter, the employer
24    contribution shall be equal to 0.58% of each teacher's
25    salary.
26The school district or other employing unit may pay these

 

 

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1employer contributions out of any source of funding available
2for that purpose and shall forward the contributions to the
3System on the schedule established for the payment of member
4contributions.
5    These employer contributions are intended to offset a
6portion of the cost to the System of the increases in
7retirement benefits resulting from this amendatory Act of 1998.
8    Each employer of teachers is entitled to a credit against
9the contributions required under this subsection (e) with
10respect to salaries paid to teachers for the period January 1,
112002 through June 30, 2003, equal to the amount paid by that
12employer under subsection (a-5) of Section 6.6 of the State
13Employees Group Insurance Act of 1971 with respect to salaries
14paid to teachers for that period.
15    The additional 1% employee contribution required under
16Section 16-152 by this amendatory Act of 1998 is the
17responsibility of the teacher and not the teacher's employer,
18unless the employer agrees, through collective bargaining or
19otherwise, to make the contribution on behalf of the teacher.
20    If an employer is required by a contract in effect on May
211, 1998 between the employer and an employee organization to
22pay, on behalf of all its full-time employees covered by this
23Article, all mandatory employee contributions required under
24this Article, then the employer shall be excused from paying
25the employer contribution required under this subsection (e)
26for the balance of the term of that contract. The employer and

 

 

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1the employee organization shall jointly certify to the System
2the existence of the contractual requirement, in such form as
3the System may prescribe. This exclusion shall cease upon the
4termination, extension, or renewal of the contract at any time
5after May 1, 1998.
6    (f) If the amount of a teacher's salary for any school year
7used to determine final average salary exceeds the member's
8annual full-time salary rate with the same employer for the
9previous school year by more than 6%, the teacher's employer
10shall pay to the System, in addition to all other payments
11required under this Section and in accordance with guidelines
12established by the System, the present value of the increase in
13benefits resulting from the portion of the increase in salary
14that is in excess of 6%. This present value shall be computed
15by the System on the basis of the actuarial assumptions and
16tables used in the most recent actuarial valuation of the
17System that is available at the time of the computation. If a
18teacher's salary for the 2005-2006 school year is used to
19determine final average salary under this subsection (f), then
20the changes made to this subsection (f) by Public Act 94-1057
21shall apply in calculating whether the increase in his or her
22salary is in excess of 6%. For the purposes of this Section,
23change in employment under Section 10-21.12 of the School Code
24on or after June 1, 2005 shall constitute a change in employer.
25The System may require the employer to provide any pertinent
26information or documentation. The changes made to this

 

 

HB5351- 49 -LRB097 16336 EFG 61491 b

1subsection (f) by this amendatory Act of the 94th General
2Assembly apply without regard to whether the teacher was in
3service on or after its effective date.
4    Whenever it determines that a payment is or may be required
5under this subsection, the System shall calculate the amount of
6the payment and bill the employer for that amount. The bill
7shall specify the calculations used to determine the amount
8due. If the employer disputes the amount of the bill, it may,
9within 30 days after receipt of the bill, apply to the System
10in writing for a recalculation. The application must specify in
11detail the grounds of the dispute and, if the employer asserts
12that the calculation is subject to subsection (g) or (h) of
13this Section, must include an affidavit setting forth and
14attesting to all facts within the employer's knowledge that are
15pertinent to the applicability of that subsection. Upon
16receiving a timely application for recalculation, the System
17shall review the application and, if appropriate, recalculate
18the amount due.
19    The employer contributions required under this subsection
20(f) may be paid in the form of a lump sum within 90 days after
21receipt of the bill. If the employer contributions are not paid
22within 90 days after receipt of the bill, then interest will be
23charged at a rate equal to the System's annual actuarially
24assumed rate of return on investment compounded annually from
25the 91st day after receipt of the bill. Payments must be
26concluded within 3 years after the employer's receipt of the

 

 

HB5351- 50 -LRB097 16336 EFG 61491 b

1bill.
2    (g) This subsection (g) applies only to payments made or
3salary increases given on or after June 1, 2005 but before July
41, 2011. The changes made by Public Act 94-1057 shall not
5require the System to refund any payments received before July
631, 2006 (the effective date of Public Act 94-1057).
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude salary increases paid to teachers
9under contracts or collective bargaining agreements entered
10into, amended, or renewed before June 1, 2005.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude salary increases paid to a
13teacher at a time when the teacher is 10 or more years from
14retirement eligibility under Section 16-132 or 16-133.2.
15    When assessing payment for any amount due under subsection
16(f), the System shall exclude salary increases resulting from
17overload work, including summer school, when the school
18district has certified to the System, and the System has
19approved the certification, that (i) the overload work is for
20the sole purpose of classroom instruction in excess of the
21standard number of classes for a full-time teacher in a school
22district during a school year and (ii) the salary increases are
23equal to or less than the rate of pay for classroom instruction
24computed on the teacher's current salary and work schedule.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude a salary increase resulting from

 

 

HB5351- 51 -LRB097 16336 EFG 61491 b

1a promotion (i) for which the employee is required to hold a
2certificate or supervisory endorsement issued by the State
3Teacher Certification Board that is a different certification
4or supervisory endorsement than is required for the teacher's
5previous position and (ii) to a position that has existed and
6been filled by a member for no less than one complete academic
7year and the salary increase from the promotion is an increase
8that results in an amount no greater than the lesser of the
9average salary paid for other similar positions in the district
10requiring the same certification or the amount stipulated in
11the collective bargaining agreement for a similar position
12requiring the same certification.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude any payment to the teacher from
15the State of Illinois or the State Board of Education over
16which the employer does not have discretion, notwithstanding
17that the payment is included in the computation of final
18average salary.
19    (h) When assessing payment for any amount due under
20subsection (f), the System shall exclude any salary increase
21described in subsection (g) of this Section given on or after
22July 1, 2011 but before July 1, 2014 under a contract or
23collective bargaining agreement entered into, amended, or
24renewed on or after June 1, 2005 but before July 1, 2011.
25Notwithstanding any other provision of this Section, any
26payments made or salary increases given after June 30, 2014

 

 

HB5351- 52 -LRB097 16336 EFG 61491 b

1shall be used in assessing payment for any amount due under
2subsection (f) of this Section.
3    (i) The System shall prepare a report and file copies of
4the report with the Governor and the General Assembly by
5January 1, 2007 that contains all of the following information:
6        (1) The number of recalculations required by the
7    changes made to this Section by Public Act 94-1057 for each
8    employer.
9        (2) The dollar amount by which each employer's
10    contribution to the System was changed due to
11    recalculations required by Public Act 94-1057.
12        (3) The total amount the System received from each
13    employer as a result of the changes made to this Section by
14    Public Act 94-4.
15        (4) The increase in the required State contribution
16    resulting from the changes made to this Section by Public
17    Act 94-1057.
18    (j) For purposes of determining the required State
19contribution to the System, the value of the System's assets
20shall be equal to the actuarial value of the System's assets,
21which shall be calculated as follows:
22    As of June 30, 2008, the actuarial value of the System's
23assets shall be equal to the market value of the assets as of
24that date. In determining the actuarial value of the System's
25assets for fiscal years after June 30, 2008, any actuarial
26gains or losses from investment return incurred in a fiscal

 

 

HB5351- 53 -LRB097 16336 EFG 61491 b

1year shall be recognized in equal annual amounts over the
25-year period following that fiscal year.
3    (k) For purposes of determining the required State
4contribution to the system for a particular year, the actuarial
5value of assets shall be assumed to earn a rate of return equal
6to the system's actuarially assumed rate of return.
7(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
896-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff.
91-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
 
10    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
11    Sec. 18-131. Financing; employer contributions.
12    (a) The State of Illinois shall make contributions to this
13System by appropriations of the amounts which, together with
14the contributions of participants, net earnings on
15investments, and other income, will meet the costs of
16maintaining and administering this System on a 90% funded basis
17in accordance with actuarial recommendations.
18    (b) The Board shall determine the amount of State
19contributions required for each fiscal year on the basis of the
20actuarial tables and other assumptions adopted by the Board and
21the prescribed rate of interest, using the formula in
22subsection (c).
23    (c) For State fiscal years 2012 through 2045, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be

 

 

HB5351- 54 -LRB097 16336 EFG 61491 b

1sufficient to bring the total assets of the System up to 90% of
2the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8    For State fiscal years 1996 through 2005, the State
9contribution to the System, as a percentage of the applicable
10employee payroll, shall be increased in equal annual increments
11so that by State fiscal year 2011, the State is contributing at
12the rate required under this Section.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2006 is
15$29,189,400.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2007 is
18$35,236,800.
19    For each of State fiscal years 2008 through 2009, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22from the required State contribution for State fiscal year
232007, so that by State fiscal year 2011, the State is
24contributing at the rate otherwise required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2010 is

 

 

HB5351- 55 -LRB097 16336 EFG 61491 b

1$78,832,000 and shall be made from the proceeds of bonds sold
2in fiscal year 2010 pursuant to Section 7.2 of the General
3Obligation Bond Act, less (i) the pro rata share of bond sale
4expenses determined by the System's share of total bond
5proceeds, (ii) any amounts received from the General Revenue
6Fund in fiscal year 2010, and (iii) any reduction in bond
7proceeds due to the issuance of discounted bonds, if
8applicable.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2011 is
11the amount recertified by the System on or before April 1, 2011
12pursuant to Section 18-140 and shall be made from the proceeds
13of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
14the General Obligation Bond Act, less (i) the pro rata share of
15bond sale expenses determined by the System's share of total
16bond proceeds, (ii) any amounts received from the General
17Revenue Fund in fiscal year 2011, and (iii) any reduction in
18bond proceeds due to the issuance of discounted bonds, if
19applicable.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2014
22shall include, in addition to the amount otherwise calculated
23under this Section for FY2014, the amount certified by the
24Board to be necessary to bring the total contributions of the
25State to the System for Fiscal Years 1996 through 2012 up to
26the level that would have been contributed if the State had

 

 

HB5351- 56 -LRB097 16336 EFG 61491 b

1complied throughout that period with the contribution formula
2as originally enacted in Public Act 88-593, plus an amount
3representing the System's lost investment earnings resulting
4from the delayed payment of those contributions.
5    Beginning in State fiscal year 2046, the minimum State
6contribution for each fiscal year shall be the amount needed to
7maintain the total assets of the System at 90% of the total
8actuarial liabilities of the System.
9    Amounts received by the System pursuant to Section 25 of
10the Budget Stabilization Act or Section 8.12 of the State
11Finance Act in any fiscal year do not reduce and do not
12constitute payment of any portion of the minimum State
13contribution required under this Article in that fiscal year.
14Such amounts shall not reduce, and shall not be included in the
15calculation of, the required State contributions under this
16Article in any future year until the System has reached a
17funding ratio of at least 90%. A reference in this Article to
18the "required State contribution" or any substantially similar
19term does not include or apply to any amounts payable to the
20System under Section 25 of the Budget Stabilization Act.
21    Notwithstanding any other provision of this Section, the
22required State contribution for State fiscal year 2005 and for
23fiscal year 2008 and each fiscal year thereafter, as calculated
24under this Section and certified under Section 18-140, shall
25not exceed an amount equal to (i) the amount of the required
26State contribution that would have been calculated under this

 

 

HB5351- 57 -LRB097 16336 EFG 61491 b

1Section for that fiscal year if the System had not received any
2payments under subsection (d) of Section 7.2 of the General
3Obligation Bond Act, minus (ii) the portion of the State's
4total debt service payments for that fiscal year on the bonds
5issued in fiscal year 2003 for the purposes of that Section
67.2, as determined and certified by the Comptroller, that is
7the same as the System's portion of the total moneys
8distributed under subsection (d) of Section 7.2 of the General
9Obligation Bond Act. In determining this maximum for State
10fiscal years 2008 through 2010, however, the amount referred to
11in item (i) shall be increased, as a percentage of the
12applicable employee payroll, in equal increments calculated
13from the sum of the required State contribution for State
14fiscal year 2007 plus the applicable portion of the State's
15total debt service payments for fiscal year 2007 on the bonds
16issued in fiscal year 2003 for the purposes of Section 7.2 of
17the General Obligation Bond Act, so that, by State fiscal year
182011, the State is contributing at the rate otherwise required
19under this Section.
20    (d) For purposes of determining the required State
21contribution to the System, the value of the System's assets
22shall be equal to the actuarial value of the System's assets,
23which shall be calculated as follows:
24    As of June 30, 2008, the actuarial value of the System's
25assets shall be equal to the market value of the assets as of
26that date. In determining the actuarial value of the System's

 

 

HB5351- 58 -LRB097 16336 EFG 61491 b

1assets for fiscal years after June 30, 2008, any actuarial
2gains or losses from investment return incurred in a fiscal
3year shall be recognized in equal annual amounts over the
45-year period following that fiscal year.
5    (e) For purposes of determining the required State
6contribution to the system for a particular year, the actuarial
7value of assets shall be assumed to earn a rate of return equal
8to the system's actuarially assumed rate of return.
9(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09;
1096-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff.
113-18-11; revised 4-6-11.)
 
12    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
13    Sec. 18-140. To certify required State contributions and
14submit vouchers.
15    (a) The Board shall certify to the Governor, on or before
16November 15 of each year, the amount of the required State
17contribution to the System for the following fiscal year. The
18certification shall include a copy of the actuarial
19recommendations upon which it is based.
20    On or before May 1, 2004, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2005, taking
23into account the amounts appropriated to and received by the
24System under subsection (d) of Section 7.2 of the General
25Obligation Bond Act.

 

 

HB5351- 59 -LRB097 16336 EFG 61491 b

1    On or before July 1, 2005, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2006, taking
4into account the changes in required State contributions made
5by this amendatory Act of the 94th General Assembly.
6    On or before April 1, 2011, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2011, applying
9the changes made by Public Act 96-889 to the System's assets
10and liabilities as of June 30, 2009 as though Public Act 96-889
11was approved on that date.
12    The Board's certification of the required State
13contribution for Fiscal Year 2014 shall include, in addition to
14the amount otherwise calculated under this Section for FY2014,
15an amount determined by the Board to be necessary to bring the
16total contributions of the State to the system for Fiscal Years
171996 through 2012 up to the level that would have been
18contributed if the State had complied with the contribution
19formula as originally enacted in Public Act 88-593, plus an
20amount representing the system's lost investment earnings
21resulting from the delayed payment of those contributions.
22    (b) Beginning in State fiscal year 1996, on or as soon as
23possible after the 15th day of each month the Board shall
24submit vouchers for payment of State contributions to the
25System, in a total monthly amount of one-twelfth of the
26required annual State contribution certified under subsection

 

 

HB5351- 60 -LRB097 16336 EFG 61491 b

1(a). From the effective date of this amendatory Act of the 93rd
2General Assembly through June 30, 2004, the Board shall not
3submit vouchers for the remainder of fiscal year 2004 in excess
4of the fiscal year 2004 certified contribution amount
5determined under this Section after taking into consideration
6the transfer to the System under subsection (c) of Section
76z-61 of the State Finance Act. These vouchers shall be paid by
8the State Comptroller and Treasurer by warrants drawn on the
9funds appropriated to the System for that fiscal year.
10    If in any month the amount remaining unexpended from all
11other appropriations to the System for the applicable fiscal
12year (including the appropriations to the System under Section
138.12 of the State Finance Act and Section 1 of the State
14Pension Funds Continuing Appropriation Act) is less than the
15amount lawfully vouchered under this Section, the difference
16shall be paid from the General Revenue Fund under the
17continuing appropriation authority provided in Section 1.1 of
18the State Pension Funds Continuing Appropriation Act.
19(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.