Rep. Jay Hoffman
Filed: 3/1/2013
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1 | AMENDMENT TO HOUSE BILL 1165
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2 | AMENDMENT NO. ______. Amend House Bill 1165, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Budget Stabilization Act is amended by | ||||||
6 | changing Sections 20 and 25 as follows: | ||||||
7 | (30 ILCS 122/20) | ||||||
8 | Sec. 20. Pension Stabilization Fund. | ||||||
9 | (a) The Pension Stabilization Fund is hereby created as a | ||||||
10 | special fund in the State treasury. Moneys in the fund shall be | ||||||
11 | used for the sole purpose of making payments to the designated | ||||||
12 | retirement systems as provided in Section 25.
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13 | (b) For each fiscal year when the General Assembly's
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14 | appropriations and transfers or diversions as required by law
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15 | from general funds do not exceed 99% of the
estimated general | ||||||
16 | funds revenues pursuant to subsection (a)
of Section 10, the |
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1 | Comptroller shall transfer from the
General Revenue Fund as | ||||||
2 | provided by this Section a total
amount equal to 0.5% of the | ||||||
3 | estimated general funds revenues
to the Pension Stabilization | ||||||
4 | Fund. | ||||||
5 | (c) For each fiscal year through Fiscal Year 2013 when the | ||||||
6 | General Assembly's
appropriations and transfers or diversions | ||||||
7 | as required by law
from general funds do not exceed 98% of the
| ||||||
8 | estimated general funds revenues pursuant to subsection (b)
of | ||||||
9 | Section 10, the Comptroller shall transfer from the
General | ||||||
10 | Revenue Fund as provided by this Section a total
amount equal | ||||||
11 | to 1.0% of the estimated general funds revenues
to the Pension | ||||||
12 | Stabilization Fund. | ||||||
13 | (c-5) In Fiscal Year 2016 and each fiscal year thereafter, | ||||||
14 | the State Comptroller shall order transferred and the State | ||||||
15 | Treasurer shall transfer the following amounts from the General | ||||||
16 | Revenue Fund to the Pension Stabilization Fund: | ||||||
17 | in Fiscal Year 2016, $441,429,372; | ||||||
18 | in Fiscal Year 2017, $150,545,372; | ||||||
19 | in Fiscal Year 2018, $179,267,872; | ||||||
20 | in Fiscal Year 2019, $211,777,872; | ||||||
21 | in Fiscal Year 2020, $1,123,333,372; | ||||||
22 | in Fiscal Year 2021, $1,084,470,872; | ||||||
23 | in Fiscal Year 2022, $1,048,083,372; | ||||||
24 | in Fiscal Year 2023, $1,014,170,872; | ||||||
25 | in Fiscal Year 2024, $957,733,372; | ||||||
26 | in Fiscal Year 2025, $905,683,372; |
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1 | in Fiscal Year 2026, $882,458,372; | ||||||
2 | in Fiscal Year 2027, $861,783,372; | ||||||
3 | in Fiscal Year 2028, $818,658,372; | ||||||
4 | in Fiscal Year 2029, $779,358,372; | ||||||
5 | in Fiscal Year 2030, $718,883,372; | ||||||
6 | in Fiscal Year 2031, $663,508,372; | ||||||
7 | in Fiscal Year 2032, $638,233,372; | ||||||
8 | in Fiscal Year 2033, $641,783,372; | ||||||
9 | in Fiscal Year 2034, $1,797,883,372; | ||||||
10 | in Fiscal Year 2035, $1,797,883,372; | ||||||
11 | in Fiscal Year 2036, $1,797,883,372; | ||||||
12 | in Fiscal Year 2037, $1,797,883,372; | ||||||
13 | in Fiscal Year 2038, $1,797,883,372; | ||||||
14 | in Fiscal Year 2039, $1,797,883,372; | ||||||
15 | in Fiscal Year 2040, $1,797,883,372; | ||||||
16 | in Fiscal Year 2041, $1,797,883,372; | ||||||
17 | in Fiscal Year 2042, $1,797,883,372; | ||||||
18 | in Fiscal Year 2043, $1,797,883,372; | ||||||
19 | in Fiscal Year 2044, $1,797,883,372; and | ||||||
20 | in Fiscal Year 2045, $1,797,883,372. | ||||||
21 | (c-10) The transfers made pursuant to subsection (c-5) of | ||||||
22 | this Section shall continue until Fiscal Year 2045 or until | ||||||
23 | each of the designated retirement systems, as defined in | ||||||
24 | Section 25, has achieved a funding ratio of at least 100%, | ||||||
25 | whichever occurs first. | ||||||
26 | (d) The Comptroller shall transfer 1/12 of the total
amount |
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1 | to be transferred each fiscal year under this Section
into the | ||||||
2 | Pension Stabilization Fund on the first day of each
month of | ||||||
3 | that fiscal year or as soon thereafter as possible; except that | ||||||
4 | the final transfer of the fiscal year shall be made as soon as | ||||||
5 | practical after the August 31 following the end of the fiscal | ||||||
6 | year. | ||||||
7 | Until Fiscal Year 2014, before Before the final transfer | ||||||
8 | for a fiscal year is made, the Comptroller shall reconcile the | ||||||
9 | estimated general funds revenues used in calculating the other | ||||||
10 | transfers under this Section for that fiscal year with the | ||||||
11 | actual general funds revenues for that fiscal year. The
final | ||||||
12 | transfer for the fiscal year shall be adjusted so that the
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13 | total amount transferred under this Section for that fiscal | ||||||
14 | year is equal to the percentage specified in subsection
(b) or | ||||||
15 | (c) of this Section, whichever is applicable, of the actual
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16 | general funds revenues for that fiscal year. The actual general | ||||||
17 | funds revenues for the fiscal year shall be calculated in a | ||||||
18 | manner consistent with subsection (c) of
Section 10 of this | ||||||
19 | Act.
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20 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
21 | (30 ILCS 122/25)
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22 | Sec. 25. Transfers from the Pension Stabilization Fund. | ||||||
23 | (a) As used in this Section, "designated retirement | ||||||
24 | systems" means: | ||||||
25 | (1) the State Employees' Retirement System of
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1 | Illinois; | ||||||
2 | (2) the Teachers' Retirement System of the State of
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3 | Illinois; | ||||||
4 | (3) the State Universities Retirement System; | ||||||
5 | (4) the Judges Retirement System of Illinois; and | ||||||
6 | (5) the General Assembly Retirement System. | ||||||
7 | (b) As soon as may be practical after any money is | ||||||
8 | deposited into the Pension Stabilization Fund, the State | ||||||
9 | Comptroller shall apportion the deposited amount among the | ||||||
10 | designated retirement systems and the State Comptroller and | ||||||
11 | State Treasurer shall pay the apportioned amounts to the | ||||||
12 | designated retirement systems. The amount deposited shall be | ||||||
13 | apportioned among the designated retirement systems in | ||||||
14 | proportion to their respective certified State contributions | ||||||
15 | for the State fiscal year in which the payment is made to those | ||||||
16 | systems in the same proportion as their respective portions of | ||||||
17 | the
total actuarial reserve deficiency of the designated | ||||||
18 | retirement systems, as most
recently determined by the | ||||||
19 | Governor's Office of Management and
Budget . Amounts received by | ||||||
20 | a designated retirement system under this Section shall be used | ||||||
21 | for funding the unfunded liabilities of the retirement system. | ||||||
22 | Payments under this Section are authorized by the continuing | ||||||
23 | appropriation under Section 1.7 of the State Pension Funds | ||||||
24 | Continuing Appropriation Act. | ||||||
25 | (c) At the request of the State Comptroller, the Governor's | ||||||
26 | Office of Management and Budget shall
determine the individual |
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1 | and total actuarial reserve deficiencies of the
designated | ||||||
2 | retirement systems. For this purpose, the
Governor's Office of | ||||||
3 | Management and Budget shall consider the
latest available audit | ||||||
4 | and actuarial reports of each of the
retirement systems and the | ||||||
5 | relevant reports and statistics of
the Public Pension Division | ||||||
6 | of the Department of
Financial and Professional Regulation. | ||||||
7 | (d) Payments to the designated retirement systems under | ||||||
8 | this Section shall be in addition to, and not in lieu of, any | ||||||
9 | State contributions required under Section 2-124, 14-131, | ||||||
10 | 15-155, 16-158, or 18-131 of the Illinois Pension Code.
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11 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
12 | Section 15. The Illinois Pension Code is amended by | ||||||
13 | changing Sections 1-103.3, 2-124, 2-125, 14-131, 14-132, | ||||||
14 | 15-155, 15-156, and 16-158 and adding Section 16-158.2 as | ||||||
15 | follows:
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16 | (40 ILCS 5/1-103.3)
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17 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||
18 | standard.
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19 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||
20 | of 1994 that change the method of
calculating, certifying, and | ||||||
21 | paying the required State contributions to the
retirement | ||||||
22 | systems established under Articles 2, 14, 15, 16, and 18 shall
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23 | first apply to the State contributions required for State | ||||||
24 | fiscal year 1996.
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1 | (b) (Blank) The General Assembly declares that a funding | ||||||
2 | ratio (the ratio of a
retirement system's total assets to its | ||||||
3 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||
4 | State-funded retirement systems in Illinois, and it
finds that | ||||||
5 | a funding ratio of 90% is now the generally-recognized norm
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6 | throughout the nation for public employee retirement systems | ||||||
7 | that are
considered to be financially secure and funded in an | ||||||
8 | appropriate and
responsible manner .
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9 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
10 | Government Forecasting and Accountability, in consultation | ||||||
11 | with the affected retirement systems and the
Governor's Office | ||||||
12 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
13 | consider and determine whether the funding goals 90% funding | ||||||
14 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
15 | continue subsection (b) continues to represent an appropriate | ||||||
16 | funding goals goal for
those State-funded retirement systems in | ||||||
17 | Illinois , and it shall report its findings
and recommendations | ||||||
18 | on this subject to the Governor and the General Assembly.
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19 | (Source: P.A. 93-1067, eff. 1-15-05.)
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20 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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21 | Sec. 2-124. Contributions by State.
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22 | (a) The State shall make contributions to the System by
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23 | appropriations of amounts which, together with the | ||||||
24 | contributions of
participants, interest earned on investments, | ||||||
25 | and other income
will meet the cost of maintaining and |
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1 | administering the System on a 100% 90%
funded basis in | ||||||
2 | accordance with actuarial recommendations.
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3 | (b) The Board shall determine the amount of State
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4 | contributions required for each fiscal year on the basis of the
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5 | actuarial tables and other assumptions adopted by the Board and | ||||||
6 | the
prescribed rate of interest, using the formula in | ||||||
7 | subsection (c).
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8 | (c) For State fiscal years 2015 through 2045, the minimum | ||||||
9 | contribution
to the System to be made by the State for each | ||||||
10 | fiscal year shall be an amount
determined by the System to be | ||||||
11 | sufficient to bring the total assets of the
System up to 100% | ||||||
12 | of the total actuarial liabilities of the System by the end of
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13 | State fiscal year 2045. In making these determinations, the | ||||||
14 | required State
contribution shall be calculated each year as a | ||||||
15 | level percentage of payroll
over the years remaining to and | ||||||
16 | including fiscal year 2045 and shall be
determined under the | ||||||
17 | projected unit credit actuarial cost method. | ||||||
18 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
19 | contribution
to the System to be made by the State for each | ||||||
20 | fiscal year shall be an amount
determined by the System to be | ||||||
21 | sufficient to bring the total assets of the
System up to 90% of | ||||||
22 | the total actuarial liabilities of the System by the end of
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23 | State fiscal year 2045. In making these determinations, the | ||||||
24 | required State
contribution shall be calculated each year as a | ||||||
25 | level percentage of payroll
over the years remaining to and | ||||||
26 | including fiscal year 2045 and shall be
determined under the |
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1 | projected unit credit actuarial cost method.
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2 | For State fiscal years 1996 through 2005, the State | ||||||
3 | contribution to
the System, as a percentage of the applicable | ||||||
4 | employee payroll, shall be
increased in equal annual increments | ||||||
5 | so that by State fiscal year 2011, the
State is contributing at | ||||||
6 | the rate required under this Section.
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7 | Notwithstanding any other provision of this Article, the | ||||||
8 | total required State
contribution for State fiscal year 2006 is | ||||||
9 | $4,157,000.
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10 | Notwithstanding any other provision of this Article, the | ||||||
11 | total required State
contribution for State fiscal year 2007 is | ||||||
12 | $5,220,300.
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13 | For each of State fiscal years 2008 through 2009, the State | ||||||
14 | contribution to
the System, as a percentage of the applicable | ||||||
15 | employee payroll, shall be
increased in equal annual increments | ||||||
16 | from the required State contribution for State fiscal year | ||||||
17 | 2007, so that by State fiscal year 2011, the
State is | ||||||
18 | contributing at the rate otherwise required under this Section.
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19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State contribution for State fiscal year 2010 is | ||||||
21 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
22 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
23 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
24 | expenses determined by the System's share of total bond | ||||||
25 | proceeds, (ii) any amounts received from the General Revenue | ||||||
26 | Fund in fiscal year 2010, and (iii) any reduction in bond |
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1 | proceeds due to the issuance of discounted bonds, if | ||||||
2 | applicable. | ||||||
3 | Notwithstanding any other provision of this Article, the
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4 | total required State contribution for State fiscal year 2011 is
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5 | the amount recertified by the System on or before April 1, 2011 | ||||||
6 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
7 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
8 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
9 | bond sale
expenses determined by the System's share of total | ||||||
10 | bond
proceeds, (ii) any amounts received from the General | ||||||
11 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
12 | bond
proceeds due to the issuance of discounted bonds, if
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13 | applicable. | ||||||
14 | Beginning in State fiscal year 2046, the minimum State | ||||||
15 | contribution for
each fiscal year shall be the amount needed to | ||||||
16 | maintain the total assets of
the System at 100% 90% of the | ||||||
17 | total actuarial liabilities of the System.
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18 | Amounts received by the System pursuant to Section 25 of | ||||||
19 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
20 | Finance Act in any fiscal year do not reduce and do not | ||||||
21 | constitute payment of any portion of the minimum State | ||||||
22 | contribution required under this Article in that fiscal year. | ||||||
23 | Such amounts shall not reduce, and shall not be included in the | ||||||
24 | calculation of, the required State contributions under this | ||||||
25 | Article in any future year until the System has reached a | ||||||
26 | funding ratio of at least 80% 90% . A reference in this Article |
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1 | to the "required State contribution" or any substantially | ||||||
2 | similar term does not include or apply to any amounts payable | ||||||
3 | to the System under Section 25 of the Budget Stabilization Act.
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4 | Notwithstanding any other provision of this Code or the | ||||||
5 | Budget Stabilization Act, amounts transferred to the System | ||||||
6 | pursuant to the Budget Stabilization Act after the effective | ||||||
7 | date of this amendatory Act of the 98th General Assembly do not | ||||||
8 | reduce and do not constitute payment of any portion of the | ||||||
9 | required State contribution under this Article in that fiscal | ||||||
10 | year. Such amounts shall not reduce, and shall not be included | ||||||
11 | in the calculation of, the required State contributions under | ||||||
12 | this Article in any future year until the System has received | ||||||
13 | payment of contributions pursuant to the Budget Stabilization | ||||||
14 | Act. | ||||||
15 | Notwithstanding any other provision of this Section, the | ||||||
16 | required State
contribution for State fiscal year 2005 and for | ||||||
17 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
18 | fiscal year 2014 , as
calculated under this Section and
| ||||||
19 | certified under Section 2-134, shall not exceed an amount equal | ||||||
20 | to (i) the
amount of the required State contribution that would | ||||||
21 | have been calculated under
this Section for that fiscal year if | ||||||
22 | the System had not received any payments
under subsection (d) | ||||||
23 | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | ||||||
24 | the portion of the State's total debt service payments for that | ||||||
25 | fiscal
year on the bonds issued in fiscal year 2003 for the | ||||||
26 | purposes of that Section 7.2, as determined
and certified by |
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1 | the Comptroller, that is the same as the System's portion of
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2 | the total moneys distributed under subsection (d) of Section | ||||||
3 | 7.2 of the General
Obligation Bond Act. In determining this | ||||||
4 | maximum for State fiscal years 2008 through 2010, however, the | ||||||
5 | amount referred to in item (i) shall be increased, as a | ||||||
6 | percentage of the applicable employee payroll, in equal | ||||||
7 | increments calculated from the sum of the required State | ||||||
8 | contribution for State fiscal year 2007 plus the applicable | ||||||
9 | portion of the State's total debt service payments for fiscal | ||||||
10 | year 2007 on the bonds issued in fiscal year 2003 for the | ||||||
11 | purposes of Section 7.2 of the General
Obligation Bond Act, so | ||||||
12 | that, by State fiscal year 2011, the
State is contributing at | ||||||
13 | the rate otherwise required under this Section.
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14 | (d) For purposes of determining the required State | ||||||
15 | contribution to the System, the value of the System's assets | ||||||
16 | shall be equal to the actuarial value of the System's assets, | ||||||
17 | which shall be calculated as follows: | ||||||
18 | As of June 30, 2008, the actuarial value of the System's | ||||||
19 | assets shall be equal to the market value of the assets as of | ||||||
20 | that date. In determining the actuarial value of the System's | ||||||
21 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
22 | gains or losses from investment return incurred in a fiscal | ||||||
23 | year shall be recognized in equal annual amounts over the | ||||||
24 | 5-year period following that fiscal year. | ||||||
25 | (e) For purposes of determining the required State | ||||||
26 | contribution to the system for a particular year, the actuarial |
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1 | value of assets shall be assumed to earn a rate of return equal | ||||||
2 | to the system's actuarially assumed rate of return. | ||||||
3 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
4 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
5 | 7-13-12.)
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6 | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
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7 | Sec. 2-125. Obligations of State ; funding guarantee . | ||||||
8 | (a) The payment of (1) the required State contributions, | ||||||
9 | (2) all benefits
granted under this system and (3) all expenses | ||||||
10 | of administration and
operation are obligations of the State to | ||||||
11 | the extent specified in this
Article.
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12 | (b) All income, interest and dividends derived from | ||||||
13 | deposits and investments
shall be credited to the account of | ||||||
14 | the system in the State Treasury and
used to pay benefits under | ||||||
15 | this Article.
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16 | (c) Pursuant to Article XIII, Section 5 of the 1970 | ||||||
17 | Constitution of the State of Illinois, beginning on July 1, | ||||||
18 | 2013, the State shall, as a retirement benefit to each | ||||||
19 | participant and annuitant of the System be contractually | ||||||
20 | obligated to the System (as a fiduciary and trustee of the | ||||||
21 | participants and annuitants) to pay the annual required State | ||||||
22 | contribution, as determined by the Board of the System using | ||||||
23 | generally accepted actuarial principles, as is necessary to | ||||||
24 | bring the total assets of the System up to 100% of the total | ||||||
25 | actuarial liabilities of the System by the end of State fiscal |
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| |||||||
1 | year 2045. As a further retirement benefit and contractual | ||||||
2 | obligation, each fiscal year, the State shall pay to each | ||||||
3 | designated retirement system the annual required State | ||||||
4 | contribution certified by the Board for that fiscal year. | ||||||
5 | Payments of the annual required State contribution for each | ||||||
6 | fiscal year shall be made in equal monthly installments. | ||||||
7 | Additionally, beginning in fiscal year 2014, State transfers to | ||||||
8 | the Pension Stabilization Fund pursuant to Section 20 of the | ||||||
9 | Budget Stabilization Act and payments to the System pursuant to | ||||||
10 | Section 25 of the Budget Stabilization Act shall be further | ||||||
11 | retirement benefits and contractual obligations. The transfers | ||||||
12 | and payments prescribed in Sections 20 and 25 of the Budget | ||||||
13 | Stabilization Act shall not be used by the retirement system | ||||||
14 | when calculation any pension payment until the System has | ||||||
15 | reached a funded level of 100%. This Section and the security | ||||||
16 | it provides to participants and annuitants is intended to be, | ||||||
17 | and is, a contractual right that is part of the pension | ||||||
18 | benefits provided to the participants and annuitants. | ||||||
19 | Notwithstanding anything to the contrary in the Court of Claims | ||||||
20 | Act or any other law, a designated retirement system has the | ||||||
21 | exclusive right to and shall bring a mandamus action in the | ||||||
22 | Circuit Court of Sangamon County against the State to compel | ||||||
23 | the State to make any installment of the annual required State | ||||||
24 | contribution required by this Section, irrespective of other | ||||||
25 | remedies that may be available to the System. Each member or | ||||||
26 | annuitant of the System has the right to in any judicial |
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1 | district in which the System maintains an office if the System | ||||||
2 | fails to bring an action specified in this Section, | ||||||
3 | irrespective of other remedies that may be available to the | ||||||
4 | member or annuitant. In making these determinations, the | ||||||
5 | required State contribution shall be calculated each year as a | ||||||
6 | level percentage of payroll over the years remaining to and | ||||||
7 | including fiscal year 2045 and shall be determined under the | ||||||
8 | projected unit credit actuarial cost method. | ||||||
9 | (Source: P.A. 83-1440.)
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10 | (40 ILCS 5/14-131)
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11 | Sec. 14-131. Contributions by State.
| ||||||
12 | (a) The State shall make contributions to the System by | ||||||
13 | appropriations of
amounts which, together with other employer | ||||||
14 | contributions from trust, federal,
and other funds, employee | ||||||
15 | contributions, investment income, and other income,
will be | ||||||
16 | sufficient to meet the cost of maintaining and administering | ||||||
17 | the System
on a 100% 90% funded basis in accordance with | ||||||
18 | actuarial recommendations.
| ||||||
19 | For the purposes of this Section and Section 14-135.08, | ||||||
20 | references to State
contributions refer only to employer | ||||||
21 | contributions and do not include employee
contributions that | ||||||
22 | are picked up or otherwise paid by the State or a
department on | ||||||
23 | behalf of the employee.
| ||||||
24 | (b) The Board shall determine the total amount of State | ||||||
25 | contributions
required for each fiscal year on the basis of the |
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| |||||||
1 | actuarial tables and other
assumptions adopted by the Board, | ||||||
2 | using the formula in subsection (e).
| ||||||
3 | The Board shall also determine a State contribution rate | ||||||
4 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
5 | based on the total required State
contribution for that fiscal | ||||||
6 | year (less the amount received by the System from
| ||||||
7 | appropriations under Section 8.12 of the State Finance Act and | ||||||
8 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
9 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
10 | immediately preceding the applicable November 15
certification | ||||||
11 | deadline), the estimated payroll (including all forms of
| ||||||
12 | compensation) for personal services rendered by eligible | ||||||
13 | employees, and the
recommendations of the actuary.
| ||||||
14 | For the purposes of this Section and Section 14.1 of the | ||||||
15 | State Finance Act,
the term "eligible employees" includes | ||||||
16 | employees who participate in the System,
persons who may elect | ||||||
17 | to participate in the System but have not so elected,
persons | ||||||
18 | who are serving a qualifying period that is required for | ||||||
19 | participation,
and annuitants employed by a department as | ||||||
20 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
21 | (c) Contributions shall be made by the several departments | ||||||
22 | for each pay
period by warrants drawn by the State Comptroller | ||||||
23 | against their respective
funds or appropriations based upon | ||||||
24 | vouchers stating the amount to be so
contributed. These amounts | ||||||
25 | shall be based on the full rate certified by the
Board under | ||||||
26 | Section 14-135.08 for that fiscal year.
From the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
2 | payment of the final payroll from fiscal year 2004
| ||||||
3 | appropriations, the several departments shall not make | ||||||
4 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
5 | instead make payments
as required under subsection (a-1) of | ||||||
6 | Section 14.1 of the State Finance Act.
The several departments | ||||||
7 | shall resume those contributions at the commencement of
fiscal | ||||||
8 | year 2005.
| ||||||
9 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
10 | fiscal years 2010, 2012, and 2013 only, contributions by the | ||||||
11 | several departments are not required to be made for General | ||||||
12 | Revenue Funds payrolls processed by the Comptroller. Payrolls | ||||||
13 | paid by the several departments from all other State funds must | ||||||
14 | continue to be processed pursuant to subsection (c) of this | ||||||
15 | Section. | ||||||
16 | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | ||||||
17 | or as soon as possible after the 15th day of each month, the | ||||||
18 | Board shall submit vouchers for payment of State contributions | ||||||
19 | to the System, in a total monthly amount of one-twelfth of the | ||||||
20 | fiscal year General Revenue Fund contribution as certified by | ||||||
21 | the System pursuant to Section 14-135.08 of the Illinois | ||||||
22 | Pension Code. | ||||||
23 | (d) If an employee is paid from trust funds or federal | ||||||
24 | funds, the
department or other employer shall pay employer | ||||||
25 | contributions from those funds
to the System at the certified | ||||||
26 | rate, unless the terms of the trust or the
federal-State |
| |||||||
| |||||||
1 | agreement preclude the use of the funds for that purpose, in
| ||||||
2 | which case the required employer contributions shall be paid by | ||||||
3 | the State.
From the effective date of this amendatory
Act of | ||||||
4 | the 93rd General Assembly through the payment of the final
| ||||||
5 | payroll from fiscal year 2004 appropriations, the department or | ||||||
6 | other
employer shall not pay contributions for the remainder of | ||||||
7 | fiscal year
2004 but shall instead make payments as required | ||||||
8 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
9 | Act. The department or other employer shall
resume payment of
| ||||||
10 | contributions at the commencement of fiscal year 2005.
| ||||||
11 | (e) For State fiscal years 2015 through 2045, the minimum | ||||||
12 | contribution
to the System to be made by the State for each | ||||||
13 | fiscal year shall be an amount
determined by the System to be | ||||||
14 | sufficient to bring the total assets of the
System up to 100% | ||||||
15 | of the total actuarial liabilities of the System by the end of
| ||||||
16 | State fiscal year 2045. In making these determinations, the | ||||||
17 | required State
contribution shall be calculated each year as a | ||||||
18 | level percentage of payroll
over the years remaining to and | ||||||
19 | including fiscal year 2045 and shall be
determined under the | ||||||
20 | projected unit credit actuarial cost method. | ||||||
21 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
22 | contribution
to the System to be made by the State for each | ||||||
23 | fiscal year shall be an amount
determined by the System to be | ||||||
24 | sufficient to bring the total assets of the
System up to 90% of | ||||||
25 | the total actuarial liabilities of the System by the end
of | ||||||
26 | State fiscal year 2045. In making these determinations, the |
| |||||||
| |||||||
1 | required State
contribution shall be calculated each year as a | ||||||
2 | level percentage of payroll
over the years remaining to and | ||||||
3 | including fiscal year 2045 and shall be
determined under the | ||||||
4 | projected unit credit actuarial cost method.
| ||||||
5 | For State fiscal years 1996 through 2005, the State | ||||||
6 | contribution to
the System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be
increased in equal annual increments | ||||||
8 | so that by State fiscal year 2011, the
State is contributing at | ||||||
9 | the rate required under this Section; except that
(i) for State | ||||||
10 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
11 | law of this State, the certified percentage of the applicable | ||||||
12 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
13 | creditable service under Section
14-110 and 6.500% for all | ||||||
14 | other employees, notwithstanding any contrary
certification | ||||||
15 | made under Section 14-135.08 before the effective date of this
| ||||||
16 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
17 | State fiscal years, the State contribution to
the System shall | ||||||
18 | not be less than the following indicated percentages of the
| ||||||
19 | applicable employee payroll, even if the indicated percentage | ||||||
20 | will produce a
State contribution in excess of the amount | ||||||
21 | otherwise required under this
subsection and subsection (a):
| ||||||
22 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
23 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
24 | Notwithstanding any other provision of this Article, the | ||||||
25 | total required State
contribution to the System for State | ||||||
26 | fiscal year 2006 is $203,783,900.
|
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State
contribution to the System for State | ||||||
3 | fiscal year 2007 is $344,164,400.
| ||||||
4 | For each of State fiscal years 2008 through 2009, the State | ||||||
5 | contribution to
the System, as a percentage of the applicable | ||||||
6 | employee payroll, shall be
increased in equal annual increments | ||||||
7 | from the required State contribution for State fiscal year | ||||||
8 | 2007, so that by State fiscal year 2011, the
State is | ||||||
9 | contributing at the rate otherwise required under this Section.
| ||||||
10 | Notwithstanding any other provision of this Article, the | ||||||
11 | total required State General Revenue Fund contribution for | ||||||
12 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
13 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
14 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
15 | pro rata share of bond sale expenses determined by the System's | ||||||
16 | share of total bond proceeds, (ii) any amounts received from | ||||||
17 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
18 | reduction in bond proceeds due to the issuance of discounted | ||||||
19 | bonds, if applicable. | ||||||
20 | Notwithstanding any other provision of this Article, the
| ||||||
21 | total required State General Revenue Fund contribution for
| ||||||
22 | State fiscal year 2011 is the amount recertified by the System | ||||||
23 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
24 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
25 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
26 | Act, less (i) the
pro rata share of bond sale expenses |
| |||||||
| |||||||
1 | determined by the System's
share of total bond proceeds, (ii) | ||||||
2 | any amounts received from
the General Revenue Fund in fiscal | ||||||
3 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
4 | issuance of discounted
bonds, if applicable. | ||||||
5 | Beginning in State fiscal year 2046, the minimum State | ||||||
6 | contribution for
each fiscal year shall be the amount needed to | ||||||
7 | maintain the total assets of
the System at 90% of the total | ||||||
8 | actuarial liabilities of the System.
| ||||||
9 | Amounts received by the System pursuant to Section 25 of | ||||||
10 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
11 | Finance Act in any fiscal year do not reduce and do not | ||||||
12 | constitute payment of any portion of the minimum State | ||||||
13 | contribution required under this Article in that fiscal year. | ||||||
14 | Such amounts shall not reduce, and shall not be included in the | ||||||
15 | calculation of, the required State contributions under this | ||||||
16 | Article in any future year until the System has reached a | ||||||
17 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
18 | to the "required State contribution" or any substantially | ||||||
19 | similar term does not include or apply to any amounts payable | ||||||
20 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
21 | Notwithstanding any other provision of this Code or the | ||||||
22 | Budget Stabilization Act, amounts transferred to the System | ||||||
23 | pursuant to the Budget Stabilization Act after the effective | ||||||
24 | date of this amendatory Act of the 98th General Assembly do not | ||||||
25 | reduce and do not constitute payment of any portion of the | ||||||
26 | required State contribution under this Article in that fiscal |
| |||||||
| |||||||
1 | year. Such amounts shall not reduce, and shall not be included | ||||||
2 | in the calculation of, the required State contributions under | ||||||
3 | this Article in any future year until the System has received | ||||||
4 | payment of contributions pursuant to the Budget Stabilization | ||||||
5 | Act. | ||||||
6 | Notwithstanding any other provision of this Section, the | ||||||
7 | required State
contribution for State fiscal year 2005 and for | ||||||
8 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
9 | fiscal year 2014 , as
calculated under this Section and
| ||||||
10 | certified under Section 14-135.08, shall not exceed an amount | ||||||
11 | equal to (i) the
amount of the required State contribution that | ||||||
12 | would have been calculated under
this Section for that fiscal | ||||||
13 | year if the System had not received any payments
under | ||||||
14 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
15 | Act, minus
(ii) the portion of the State's total debt service | ||||||
16 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
17 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
18 | and certified by the Comptroller, that is the same as the | ||||||
19 | System's portion of
the total moneys distributed under | ||||||
20 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
21 | Act. In determining this maximum for State fiscal years 2008 | ||||||
22 | through 2010, however, the amount referred to in item (i) shall | ||||||
23 | be increased, as a percentage of the applicable employee | ||||||
24 | payroll, in equal increments calculated from the sum of the | ||||||
25 | required State contribution for State fiscal year 2007 plus the | ||||||
26 | applicable portion of the State's total debt service payments |
| |||||||
| |||||||
1 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
2 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
3 | Act, so that, by State fiscal year 2011, the
State is | ||||||
4 | contributing at the rate otherwise required under this Section.
| ||||||
5 | (f) After the submission of all payments for eligible | ||||||
6 | employees
from personal services line items in fiscal year 2004 | ||||||
7 | have been made,
the Comptroller shall provide to the System a | ||||||
8 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
9 | for personal services that would
have been covered by payments | ||||||
10 | to the System under this Section if the
provisions of this | ||||||
11 | amendatory Act of the 93rd General Assembly had not been
| ||||||
12 | enacted. Upon
receipt of the certification, the System shall | ||||||
13 | determine the amount
due to the System based on the full rate | ||||||
14 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
15 | 2004 in order to meet the State's
obligation under this | ||||||
16 | Section. The System shall compare this amount
due to the amount | ||||||
17 | received by the System in fiscal year 2004 through
payments | ||||||
18 | under this Section and under Section 6z-61 of the State Finance | ||||||
19 | Act.
If the amount
due is more than the amount received, the | ||||||
20 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
21 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
22 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
23 | Continuing Appropriation Act. If the amount due is less than | ||||||
24 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
25 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
26 | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
| |||||||
| |||||||
1 | the Pension Contribution Fund as soon as practicable
after the | ||||||
2 | certification.
| ||||||
3 | (g) For purposes of determining the required State | ||||||
4 | contribution to the System, the value of the System's assets | ||||||
5 | shall be equal to the actuarial value of the System's assets, | ||||||
6 | which shall be calculated as follows: | ||||||
7 | As of June 30, 2008, the actuarial value of the System's | ||||||
8 | assets shall be equal to the market value of the assets as of | ||||||
9 | that date. In determining the actuarial value of the System's | ||||||
10 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
11 | gains or losses from investment return incurred in a fiscal | ||||||
12 | year shall be recognized in equal annual amounts over the | ||||||
13 | 5-year period following that fiscal year. | ||||||
14 | (h) For purposes of determining the required State | ||||||
15 | contribution to the System for a particular year, the actuarial | ||||||
16 | value of assets shall be assumed to earn a rate of return equal | ||||||
17 | to the System's actuarially assumed rate of return. | ||||||
18 | (i) After the submission of all payments for eligible | ||||||
19 | employees from personal services line items paid from the | ||||||
20 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
21 | Comptroller shall provide to the System a certification of the | ||||||
22 | sum of all fiscal year 2010 expenditures for personal services | ||||||
23 | that would have been covered by payments to the System under | ||||||
24 | this Section if the provisions of this amendatory Act of the | ||||||
25 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
26 | certification, the System shall determine the amount due to the |
| |||||||
| |||||||
1 | System based on the full rate certified by the Board under | ||||||
2 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
3 | State's obligation under this Section. The System shall compare | ||||||
4 | this amount due to the amount received by the System in fiscal | ||||||
5 | year 2010 through payments under this Section. If the amount | ||||||
6 | due is more than the amount received, the difference shall be | ||||||
7 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
8 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
9 | under Section 1.2 of the State Pension Funds Continuing | ||||||
10 | Appropriation Act. If the amount due is less than the amount | ||||||
11 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
12 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
13 | 2010 Overpayment shall be repaid by the System to the General | ||||||
14 | Revenue Fund as soon as practicable after the certification. | ||||||
15 | (j) After the submission of all payments for eligible | ||||||
16 | employees from personal services line items paid from the | ||||||
17 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
18 | Comptroller shall provide to the System a certification of the | ||||||
19 | sum of all fiscal year 2011 expenditures for personal services | ||||||
20 | that would have been covered by payments to the System under | ||||||
21 | this Section if the provisions of this amendatory Act of the | ||||||
22 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
23 | certification, the System shall determine the amount due to the | ||||||
24 | System based on the full rate certified by the Board under | ||||||
25 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
26 | State's obligation under this Section. The System shall compare |
| |||||||
| |||||||
1 | this amount due to the amount received by the System in fiscal | ||||||
2 | year 2011 through payments under this Section. If the amount | ||||||
3 | due is more than the amount received, the difference shall be | ||||||
4 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
5 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
6 | under Section 1.2 of the State Pension Funds Continuing | ||||||
7 | Appropriation Act. If the amount due is less than the amount | ||||||
8 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
9 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
10 | 2011 Overpayment shall be repaid by the System to the General | ||||||
11 | Revenue Fund as soon as practicable after the certification. | ||||||
12 | (k) For fiscal years 2012 and 2013 only, after the | ||||||
13 | submission of all payments for eligible employees from personal | ||||||
14 | services line items paid from the General Revenue Fund in the | ||||||
15 | fiscal year have been made, the Comptroller shall provide to | ||||||
16 | the System a certification of the sum of all expenditures in | ||||||
17 | the fiscal year for personal services. Upon receipt of the | ||||||
18 | certification, the System shall determine the amount due to the | ||||||
19 | System based on the full rate certified by the Board under | ||||||
20 | Section 14-135.08 for the fiscal year in order to meet the | ||||||
21 | State's obligation under this Section. The System shall compare | ||||||
22 | this amount due to the amount received by the System for the | ||||||
23 | fiscal year. If the amount due is more than the amount | ||||||
24 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
25 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
26 | Year Shortfall shall be satisfied under Section 1.2 of the |
| |||||||
| |||||||
1 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
2 | due is less than the amount received, the difference shall be | ||||||
3 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
4 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
5 | by the System to the General Revenue Fund as soon as | ||||||
6 | practicable after the certification. | ||||||
7 | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | ||||||
8 | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
9 | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | ||||||
10 | eff. 6-30-12.)
| ||||||
11 | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| ||||||
12 | Sec. 14-132. Obligations of State ; funding guarantee . | ||||||
13 | (a) The payment of the required department
contributions, | ||||||
14 | all allowances,
annuities, benefits granted under this | ||||||
15 | Article, and all expenses of
administration of the system are | ||||||
16 | obligations of the State of Illinois to
the extent specified in | ||||||
17 | this Article.
| ||||||
18 | (b) All income of the system
shall be credited to a | ||||||
19 | separate account for this system in the State
treasury and | ||||||
20 | shall be used to pay allowances, annuities, benefits and
| ||||||
21 | administration expense.
| ||||||
22 | (c) Pursuant to Article XIII, Section 5 of the 1970 | ||||||
23 | Constitution of the State of Illinois, beginning on July 1, | ||||||
24 | 2013, the State shall, as a retirement benefit to each | ||||||
25 | participant and annuitant of the System be contractually |
| |||||||
| |||||||
1 | obligated to the System (as a fiduciary and trustee of the | ||||||
2 | participants and annuitants) to pay the annual required State | ||||||
3 | contribution, as determined by the Board of the System using | ||||||
4 | generally accepted actuarial principles, as is necessary to | ||||||
5 | bring the total assets of the System up to 100% of the total | ||||||
6 | actuarial liabilities of the System by the end of State fiscal | ||||||
7 | year 2045. As a further retirement benefit and contractual | ||||||
8 | obligation, each fiscal year, the State shall pay to each | ||||||
9 | designated retirement system the annual required State | ||||||
10 | contribution certified by the Board for that fiscal year. | ||||||
11 | Payments of the annual required State contribution for each | ||||||
12 | fiscal year shall be made in equal monthly installments. | ||||||
13 | Additionally, beginning in fiscal year 2014, State transfers to | ||||||
14 | the Pension Stabilization Fund pursuant to Section 20 of the | ||||||
15 | Budget Stabilization Act and payments to the System pursuant to | ||||||
16 | Section 25 of the Budget Stabilization Act shall be further | ||||||
17 | retirement benefits and contractual obligations. The transfers | ||||||
18 | and payments prescribed in Sections 20 and 25 of the Budget | ||||||
19 | Stabilization Act shall not be used by the retirement system | ||||||
20 | when calculation any pension payment until the System has | ||||||
21 | reached a funded level of 100%. This Section and the security | ||||||
22 | it provides to participants and annuitants is intended to be, | ||||||
23 | and is, a contractual right that is part of the pension | ||||||
24 | benefits provided to the participants and annuitants. | ||||||
25 | Notwithstanding anything to the contrary in the Court of Claims | ||||||
26 | Act or any other law, a designated retirement system has the |
| |||||||
| |||||||
1 | exclusive right to and shall bring a mandamus action in the | ||||||
2 | Circuit Court of Sangamon County against the State to compel | ||||||
3 | the State to make any installment of the annual required State | ||||||
4 | contribution required by this Section, irrespective of other | ||||||
5 | remedies that may be available to the System. Each member or | ||||||
6 | annuitant of the System has the right to in any judicial | ||||||
7 | district in which the System maintains an office if the System | ||||||
8 | fails to bring an action specified in this Section, | ||||||
9 | irrespective of other remedies that may be available to the | ||||||
10 | member or annuitant. In making these determinations, the | ||||||
11 | required State contribution shall be calculated each year as a | ||||||
12 | level percentage of payroll over the years remaining to and | ||||||
13 | including fiscal year 2045 and shall be determined under the | ||||||
14 | projected unit credit actuarial cost method. | ||||||
15 | (Source: P.A. 80-841.)
| ||||||
16 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
17 | Sec. 15-155. Employer contributions.
| ||||||
18 | (a) The State of Illinois shall make contributions by | ||||||
19 | appropriations of
amounts which, together with the other | ||||||
20 | employer contributions from trust,
federal, and other funds, | ||||||
21 | employee contributions, income from investments,
and other | ||||||
22 | income of this System, will be sufficient to meet the cost of
| ||||||
23 | maintaining and administering the System on a 100% 90% funded | ||||||
24 | basis in accordance
with actuarial recommendations.
| ||||||
25 | The Board shall determine the amount of State contributions |
| |||||||
| |||||||
1 | required for
each fiscal year on the basis of the actuarial | ||||||
2 | tables and other assumptions
adopted by the Board and the | ||||||
3 | recommendations of the actuary, using the formula
in subsection | ||||||
4 | (a-1).
| ||||||
5 | (a-1) For State fiscal years 2015 through 2045, the minimum | ||||||
6 | contribution
to the System to be made by the State for each | ||||||
7 | fiscal year shall be an amount
determined by the System to be | ||||||
8 | sufficient to bring the total assets of the
System up to 100% | ||||||
9 | of the total actuarial liabilities of the System by the end of
| ||||||
10 | State fiscal year 2045. In making these determinations, the | ||||||
11 | required State
contribution shall be calculated each year as a | ||||||
12 | level percentage of payroll
over the years remaining to and | ||||||
13 | including fiscal year 2045 and shall be
determined under the | ||||||
14 | projected unit credit actuarial cost method. | ||||||
15 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
16 | contribution
to the System to be made by the State for each | ||||||
17 | fiscal year shall be an amount
determined by the System to be | ||||||
18 | sufficient to bring the total assets of the
System up to 90% of | ||||||
19 | the total actuarial liabilities of the System by the end of
| ||||||
20 | State fiscal year 2045. In making these determinations, the | ||||||
21 | required State
contribution shall be calculated each year as a | ||||||
22 | level percentage of payroll
over the years remaining to and | ||||||
23 | including fiscal year 2045 and shall be
determined under the | ||||||
24 | projected unit credit actuarial cost method.
| ||||||
25 | For State fiscal years 1996 through 2005, the State | ||||||
26 | contribution to
the System, as a percentage of the applicable |
| |||||||
| |||||||
1 | employee payroll, shall be
increased in equal annual increments | ||||||
2 | so that by State fiscal year 2011, the
State is contributing at | ||||||
3 | the rate required under this Section.
| ||||||
4 | Notwithstanding any other provision of this Article, the | ||||||
5 | total required State
contribution for State fiscal year 2006 is | ||||||
6 | $166,641,900.
| ||||||
7 | Notwithstanding any other provision of this Article, the | ||||||
8 | total required State
contribution for State fiscal year 2007 is | ||||||
9 | $252,064,100.
| ||||||
10 | For each of State fiscal years 2008 through 2009, the State | ||||||
11 | contribution to
the System, as a percentage of the applicable | ||||||
12 | employee payroll, shall be
increased in equal annual increments | ||||||
13 | from the required State contribution for State fiscal year | ||||||
14 | 2007, so that by State fiscal year 2011, the
State is | ||||||
15 | contributing at the rate otherwise required under this Section.
| ||||||
16 | Notwithstanding any other provision of this Article, the | ||||||
17 | total required State contribution for State fiscal year 2010 is | ||||||
18 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
19 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
20 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
21 | share of bond sale expenses determined by the System's share of | ||||||
22 | total bond proceeds, (ii) any amounts received from the General | ||||||
23 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
24 | proceeds due to the issuance of discounted bonds, if | ||||||
25 | applicable. | ||||||
26 | Notwithstanding any other provision of this Article, the
|
| |||||||
| |||||||
1 | total required State contribution for State fiscal year 2011 is
| ||||||
2 | the amount recertified by the System on or before April 1, 2011 | ||||||
3 | pursuant to Section 15-165 and shall be made from the State | ||||||
4 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
5 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
6 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
7 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
8 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
9 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
10 | discounted bonds, if
applicable. | ||||||
11 | Beginning in State fiscal year 2046, the minimum State | ||||||
12 | contribution for
each fiscal year shall be the amount needed to | ||||||
13 | maintain the total assets of
the System at 90% of the total | ||||||
14 | actuarial liabilities of the System.
| ||||||
15 | Amounts received by the System pursuant to Section 25 of | ||||||
16 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
17 | Finance Act in any fiscal year do not reduce and do not | ||||||
18 | constitute payment of any portion of the minimum State | ||||||
19 | contribution required under this Article in that fiscal year. | ||||||
20 | Such amounts shall not reduce, and shall not be included in the | ||||||
21 | calculation of, the required State contributions under this | ||||||
22 | Article in any future year until the System has reached a | ||||||
23 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
24 | to the "required State contribution" or any substantially | ||||||
25 | similar term does not include or apply to any amounts payable | ||||||
26 | to the System under Section 25 of the Budget Stabilization Act. |
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Code or the | ||||||
2 | Budget Stabilization Act, amounts transferred to the System | ||||||
3 | pursuant to the Budget Stabilization Act after the effective | ||||||
4 | date of this amendatory Act of the 98th General Assembly do not | ||||||
5 | reduce and do not constitute payment of any portion of the | ||||||
6 | required State contribution under this Article in that fiscal | ||||||
7 | year. Such amounts shall not reduce, and shall not be included | ||||||
8 | in the calculation of, the required State contributions under | ||||||
9 | this Article in any future year until the System has received | ||||||
10 | payment of contributions pursuant to the Budget Stabilization | ||||||
11 | Act. | ||||||
12 | Notwithstanding any other provision of this Section, the | ||||||
13 | required State
contribution for State fiscal year 2005 and for | ||||||
14 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
15 | fiscal year 2014 , as
calculated under this Section and
| ||||||
16 | certified under Section 15-165, shall not exceed an amount | ||||||
17 | equal to (i) the
amount of the required State contribution that | ||||||
18 | would have been calculated under
this Section for that fiscal | ||||||
19 | year if the System had not received any payments
under | ||||||
20 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
21 | Act, minus
(ii) the portion of the State's total debt service | ||||||
22 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
23 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
24 | and certified by the Comptroller, that is the same as the | ||||||
25 | System's portion of
the total moneys distributed under | ||||||
26 | subsection (d) of Section 7.2 of the General
Obligation Bond |
| |||||||
| |||||||
1 | Act. In determining this maximum for State fiscal years 2008 | ||||||
2 | through 2010, however, the amount referred to in item (i) shall | ||||||
3 | be increased, as a percentage of the applicable employee | ||||||
4 | payroll, in equal increments calculated from the sum of the | ||||||
5 | required State contribution for State fiscal year 2007 plus the | ||||||
6 | applicable portion of the State's total debt service payments | ||||||
7 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
8 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
9 | Act, so that, by State fiscal year 2011, the
State is | ||||||
10 | contributing at the rate otherwise required under this Section.
| ||||||
11 | (b) If an employee is paid from trust or federal funds, the | ||||||
12 | employer
shall pay to the Board contributions from those funds | ||||||
13 | which are
sufficient to cover the accruing normal costs on | ||||||
14 | behalf of the employee.
However, universities having employees | ||||||
15 | who are compensated out of local
auxiliary funds, income funds, | ||||||
16 | or service enterprise funds are not required
to pay such | ||||||
17 | contributions on behalf of those employees. The local auxiliary
| ||||||
18 | funds, income funds, and service enterprise funds of | ||||||
19 | universities shall not be
considered trust funds for the | ||||||
20 | purpose of this Article, but funds of alumni
associations, | ||||||
21 | foundations, and athletic associations which are affiliated | ||||||
22 | with
the universities included as employers under this Article | ||||||
23 | and other employers
which do not receive State appropriations | ||||||
24 | are considered to be trust funds for
the purpose of this | ||||||
25 | Article.
| ||||||
26 | (b-1) The City of Urbana and the City of Champaign shall |
| |||||||
| |||||||
1 | each make
employer contributions to this System for their | ||||||
2 | respective firefighter
employees who participate in this | ||||||
3 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
4 | of contributions to be made by those municipalities shall
be | ||||||
5 | determined annually by the Board on the basis of the actuarial | ||||||
6 | assumptions
adopted by the Board and the recommendations of the | ||||||
7 | actuary, and shall be
expressed as a percentage of salary for | ||||||
8 | each such employee. The Board shall
certify the rate to the | ||||||
9 | affected municipalities as soon as may be practical.
The | ||||||
10 | employer contributions required under this subsection shall be | ||||||
11 | remitted by
the municipality to the System at the same time and | ||||||
12 | in the same manner as
employee contributions.
| ||||||
13 | (c) Through State fiscal year 1995: The total employer | ||||||
14 | contribution shall
be apportioned among the various funds of | ||||||
15 | the State and other employers,
whether trust, federal, or other | ||||||
16 | funds, in accordance with actuarial procedures
approved by the | ||||||
17 | Board. State of Illinois contributions for employers receiving
| ||||||
18 | State appropriations for personal services shall be payable | ||||||
19 | from appropriations
made to the employers or to the System. The | ||||||
20 | contributions for Class I
community colleges covering earnings | ||||||
21 | other than those paid from trust and
federal funds, shall be | ||||||
22 | payable solely from appropriations to the Illinois
Community | ||||||
23 | College Board or the System for employer contributions.
| ||||||
24 | (d) Beginning in State fiscal year 1996, the required State | ||||||
25 | contributions
to the System shall be appropriated directly to | ||||||
26 | the System and shall be payable
through vouchers issued in |
| |||||||
| |||||||
1 | accordance with subsection (c) of Section 15-165, except as | ||||||
2 | provided in subsection (g).
| ||||||
3 | (e) The State Comptroller shall draw warrants payable to | ||||||
4 | the System upon
proper certification by the System or by the | ||||||
5 | employer in accordance with the
appropriation laws and this | ||||||
6 | Code.
| ||||||
7 | (f) Normal costs under this Section means liability for
| ||||||
8 | pensions and other benefits which accrues to the System because | ||||||
9 | of the
credits earned for service rendered by the participants | ||||||
10 | during the
fiscal year and expenses of administering the | ||||||
11 | System, but shall not
include the principal of or any | ||||||
12 | redemption premium or interest on any bonds
issued by the Board | ||||||
13 | or any expenses incurred or deposits required in
connection | ||||||
14 | therewith.
| ||||||
15 | (g) If the amount of a participant's earnings for any | ||||||
16 | academic year used to determine the final rate of earnings, | ||||||
17 | determined on a full-time equivalent basis, exceeds the amount | ||||||
18 | of his or her earnings with the same employer for the previous | ||||||
19 | academic year, determined on a full-time equivalent basis, by | ||||||
20 | more than 6%, the participant's employer shall pay to the | ||||||
21 | System, in addition to all other payments required under this | ||||||
22 | Section and in accordance with guidelines established by the | ||||||
23 | System, the present value of the increase in benefits resulting | ||||||
24 | from the portion of the increase in earnings that is in excess | ||||||
25 | of 6%. This present value shall be computed by the System on | ||||||
26 | the basis of the actuarial assumptions and tables used in the |
| |||||||
| |||||||
1 | most recent actuarial valuation of the System that is available | ||||||
2 | at the time of the computation. The System may require the | ||||||
3 | employer to provide any pertinent information or | ||||||
4 | documentation. | ||||||
5 | Whenever it determines that a payment is or may be required | ||||||
6 | under this subsection (g), the System shall calculate the | ||||||
7 | amount of the payment and bill the employer for that amount. | ||||||
8 | The bill shall specify the calculations used to determine the | ||||||
9 | amount due. If the employer disputes the amount of the bill, it | ||||||
10 | may, within 30 days after receipt of the bill, apply to the | ||||||
11 | System in writing for a recalculation. The application must | ||||||
12 | specify in detail the grounds of the dispute and, if the | ||||||
13 | employer asserts that the calculation is subject to subsection | ||||||
14 | (h) or (i) of this Section, must include an affidavit setting | ||||||
15 | forth and attesting to all facts within the employer's | ||||||
16 | knowledge that are pertinent to the applicability of subsection | ||||||
17 | (h) or (i). Upon receiving a timely application for | ||||||
18 | recalculation, the System shall review the application and, if | ||||||
19 | appropriate, recalculate the amount due.
| ||||||
20 | The employer contributions required under this subsection | ||||||
21 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
22 | after receipt of the bill. If the employer contributions are | ||||||
23 | not paid within 90 days after receipt of the bill, then | ||||||
24 | interest will be charged at a rate equal to the System's annual | ||||||
25 | actuarially assumed rate of return on investment compounded | ||||||
26 | annually from the 91st day after receipt of the bill. Payments |
| |||||||
| |||||||
1 | must be concluded within 3 years after the employer's receipt | ||||||
2 | of the bill. | ||||||
3 | (h) This subsection (h) applies only to payments made or | ||||||
4 | salary increases given on or after June 1, 2005 but before July | ||||||
5 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
6 | require the System to refund any payments received before July | ||||||
7 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (g), the System shall exclude earnings increases paid to | ||||||
10 | participants under contracts or collective bargaining | ||||||
11 | agreements entered into, amended, or renewed before June 1, | ||||||
12 | 2005.
| ||||||
13 | When assessing payment for any amount due under subsection | ||||||
14 | (g), the System shall exclude earnings increases paid to a | ||||||
15 | participant at a time when the participant is 10 or more years | ||||||
16 | from retirement eligibility under Section 15-135.
| ||||||
17 | When assessing payment for any amount due under subsection | ||||||
18 | (g), the System shall exclude earnings increases resulting from | ||||||
19 | overload work, including a contract for summer teaching, or | ||||||
20 | overtime when the employer has certified to the System, and the | ||||||
21 | System has approved the certification, that: (i) in the case of | ||||||
22 | overloads (A) the overload work is for the sole purpose of | ||||||
23 | academic instruction in excess of the standard number of | ||||||
24 | instruction hours for a full-time employee occurring during the | ||||||
25 | academic year that the overload is paid and (B) the earnings | ||||||
26 | increases are equal to or less than the rate of pay for |
| |||||||
| |||||||
1 | academic instruction computed using the participant's current | ||||||
2 | salary rate and work schedule; and (ii) in the case of | ||||||
3 | overtime, the overtime was necessary for the educational | ||||||
4 | mission. | ||||||
5 | When assessing payment for any amount due under subsection | ||||||
6 | (g), the System shall exclude any earnings increase resulting | ||||||
7 | from (i) a promotion for which the employee moves from one | ||||||
8 | classification to a higher classification under the State | ||||||
9 | Universities Civil Service System, (ii) a promotion in academic | ||||||
10 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
11 | promotion that the Illinois Community College Board has | ||||||
12 | recommended in accordance with subsection (k) of this Section. | ||||||
13 | These earnings increases shall be excluded only if the | ||||||
14 | promotion is to a position that has existed and been filled by | ||||||
15 | a member for no less than one complete academic year and the | ||||||
16 | earnings increase as a result of the promotion is an increase | ||||||
17 | that results in an amount no greater than the average salary | ||||||
18 | paid for other similar positions. | ||||||
19 | (i) When assessing payment for any amount due under | ||||||
20 | subsection (g), the System shall exclude any salary increase | ||||||
21 | described in subsection (h) of this Section given on or after | ||||||
22 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
23 | collective bargaining agreement entered into, amended, or | ||||||
24 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
25 | Notwithstanding any other provision of this Section, any | ||||||
26 | payments made or salary increases given after June 30, 2014 |
| |||||||
| |||||||
1 | shall be used in assessing payment for any amount due under | ||||||
2 | subsection (g) of this Section.
| ||||||
3 | (j) The System shall prepare a report and file copies of | ||||||
4 | the report with the Governor and the General Assembly by | ||||||
5 | January 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 | (k) The Illinois Community College Board shall adopt rules | ||||||
19 | for recommending lists of promotional positions submitted to | ||||||
20 | the Board by community colleges and for reviewing the | ||||||
21 | promotional lists on an annual basis. When recommending | ||||||
22 | promotional lists, the Board shall consider the similarity of | ||||||
23 | the positions submitted to those positions recognized for State | ||||||
24 | universities by the State Universities Civil Service System. | ||||||
25 | The Illinois Community College Board shall file a copy of its | ||||||
26 | findings with the System. The System shall consider the |
| |||||||
| |||||||
1 | findings of the Illinois Community College Board when making | ||||||
2 | determinations under this Section. The System shall not exclude | ||||||
3 | any earnings increases resulting from a promotion when the | ||||||
4 | promotion was not submitted by a community college. Nothing in | ||||||
5 | this subsection (k) shall require any community college to | ||||||
6 | submit any information to the Community College Board.
| ||||||
7 | (l) For purposes of determining the required State | ||||||
8 | contribution to the System, the value of the System's assets | ||||||
9 | shall be equal to the actuarial value of the System's assets, | ||||||
10 | which shall be calculated as follows: | ||||||
11 | As of June 30, 2008, the actuarial value of the System's | ||||||
12 | assets shall be equal to the market value of the assets as of | ||||||
13 | that date. In determining the actuarial value of the System's | ||||||
14 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
15 | gains or losses from investment return incurred in a fiscal | ||||||
16 | year shall be recognized in equal annual amounts over the | ||||||
17 | 5-year period following that fiscal year. | ||||||
18 | (m) For purposes of determining the required State | ||||||
19 | contribution to the system for a particular year, the actuarial | ||||||
20 | value of assets shall be assumed to earn a rate of return equal | ||||||
21 | to the system's actuarially assumed rate of return. | ||||||
22 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
23 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
24 | 7-13-12; revised 10-17-12.)
| ||||||
25 | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
|
| |||||||
| |||||||
1 | Sec. 15-156. Obligations of State ; funding guarantees . | ||||||
2 | (a) The payment of (1) the
required State contributions, | ||||||
3 | (2) all benefits
granted under this system and (3) all expenses | ||||||
4 | in connection with the
administration and operation thereof are | ||||||
5 | obligations of the State of
Illinois to the extent specified in | ||||||
6 | this Article. The accumulated
employee normal, additional and | ||||||
7 | survivors insurance contributions
credited to the accounts of | ||||||
8 | active and inactive participants
shall not be used to pay the | ||||||
9 | State's share of the obligations.
| ||||||
10 | (c) Pursuant to Article XIII, Section 5 of the 1970 | ||||||
11 | Constitution of the State of Illinois, beginning on July 1, | ||||||
12 | 2013, the State shall, as a retirement benefit to each | ||||||
13 | participant and annuitant of the System be contractually | ||||||
14 | obligated to the System (as a fiduciary and trustee of the | ||||||
15 | participants and annuitants) to pay the annual required State | ||||||
16 | contribution, as determined by the Board of the System using | ||||||
17 | generally accepted actuarial principles, as is necessary to | ||||||
18 | bring the total assets of the System up to 100% of the total | ||||||
19 | actuarial liabilities of the System by the end of State fiscal | ||||||
20 | year 2045. As a further retirement benefit and contractual | ||||||
21 | obligation, each fiscal year, the State shall pay to each | ||||||
22 | designated retirement system the annual required State | ||||||
23 | contribution certified by the Board for that fiscal year. | ||||||
24 | Payments of the annual required State contribution for each | ||||||
25 | fiscal year shall be made in equal monthly installments. | ||||||
26 | Additionally, beginning in fiscal year 2014, State transfers to |
| |||||||
| |||||||
1 | the Pension Stabilization Fund pursuant to Section 20 of the | ||||||
2 | Budget Stabilization Act and payments to the System pursuant to | ||||||
3 | Section 25 of the Budget Stabilization Act shall be further | ||||||
4 | retirement benefits and contractual obligations. The transfers | ||||||
5 | and payments prescribed in Sections 20 and 25 of the Budget | ||||||
6 | Stabilization Act shall not be used by the retirement system | ||||||
7 | when calculation any pension payment until the System has | ||||||
8 | reached a funded level of 100%. This Section and the security | ||||||
9 | it provides to participants and annuitants is intended to be, | ||||||
10 | and is, a contractual right that is part of the pension | ||||||
11 | benefits provided to the participants and annuitants. | ||||||
12 | Notwithstanding anything to the contrary in the Court of Claims | ||||||
13 | Act or any other law, a designated retirement system has the | ||||||
14 | exclusive right to and shall bring a mandamus action in the | ||||||
15 | Circuit Court of Champaign County against the State to compel | ||||||
16 | the State to make any installment of the annual required State | ||||||
17 | contribution required by this Section, irrespective of other | ||||||
18 | remedies that may be available to the System. Each member or | ||||||
19 | annuitant of the System has the right to in any judicial | ||||||
20 | district in which the System maintains an office if the System | ||||||
21 | fails to bring an action specified in this Section, | ||||||
22 | irrespective of other remedies that may be available to the | ||||||
23 | member or annuitant. In making these determinations, the | ||||||
24 | required State contribution shall be calculated each year as a | ||||||
25 | level percentage of payroll over the years remaining to and | ||||||
26 | including fiscal year 2045 and shall be determined under the |
| |||||||
| |||||||
1 | projected unit credit actuarial cost method. | ||||||
2 | (Source: P.A. 83-1440.)
| ||||||
3 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
4 | Sec. 16-158. Contributions by State and other employing | ||||||
5 | units.
| ||||||
6 | (a) The State shall make contributions to the System by | ||||||
7 | means of
appropriations from the Common School Fund and other | ||||||
8 | State funds of amounts
which, together with other employer | ||||||
9 | contributions, employee contributions,
investment income, and | ||||||
10 | other income, will be sufficient to meet the cost of
| ||||||
11 | maintaining and administering the System on a 100% 90% funded | ||||||
12 | basis in accordance
with actuarial recommendations.
| ||||||
13 | The Board shall determine the amount of State contributions | ||||||
14 | required for
each fiscal year on the basis of the actuarial | ||||||
15 | tables and other assumptions
adopted by the Board and the | ||||||
16 | recommendations of the actuary, using the formula
in subsection | ||||||
17 | (b-3).
| ||||||
18 | (a-1) Annually, on or before November 15 until November 15, | ||||||
19 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
20 | required State contribution for the coming fiscal
year. The | ||||||
21 | certification under this subsection (a-1) shall include a copy | ||||||
22 | of the actuarial recommendations
upon which it is based and | ||||||
23 | shall specifically identify the System's projected State | ||||||
24 | normal cost for that fiscal year.
| ||||||
25 | On or before May 1, 2004, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify to
the Governor the amount of the required State | ||||||
2 | contribution to the System for
State fiscal year 2005, taking | ||||||
3 | into account the amounts appropriated to and
received by the | ||||||
4 | System under subsection (d) of Section 7.2 of the General
| ||||||
5 | Obligation Bond Act.
| ||||||
6 | On or before July 1, 2005, the Board shall recalculate and | ||||||
7 | recertify
to the Governor the amount of the required State
| ||||||
8 | contribution to the System for State fiscal year 2006, taking | ||||||
9 | into account the changes in required State contributions made | ||||||
10 | by this amendatory Act of the 94th General Assembly.
| ||||||
11 | On or before April 1, 2011, the Board shall recalculate and | ||||||
12 | recertify to the Governor the amount of the required State | ||||||
13 | contribution to the System for State fiscal year 2011, applying | ||||||
14 | the changes made by Public Act 96-889 to the System's assets | ||||||
15 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
16 | was approved on that date. | ||||||
17 | (a-5) On or before November 1 of each year, beginning | ||||||
18 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
19 | the Governor, and the General Assembly a proposed certification | ||||||
20 | of the amount of the required State contribution to the System | ||||||
21 | for the next fiscal year, along with all of the actuarial | ||||||
22 | assumptions, calculations, and data upon which that proposed | ||||||
23 | certification is based. On or before January 1 of each year, | ||||||
24 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
25 | preliminary report concerning the proposed certification and | ||||||
26 | identifying, if necessary, recommended changes in actuarial |
| |||||||
| |||||||
1 | assumptions that the Board must consider before finalizing its | ||||||
2 | certification of the required State contributions. On or before | ||||||
3 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
4 | shall certify to the Governor and the General Assembly the | ||||||
5 | amount of the required State contribution for the next fiscal | ||||||
6 | year. The Board's certification must note any deviations from | ||||||
7 | the State Actuary's recommended changes, the reason or reasons | ||||||
8 | for not following the State Actuary's recommended changes, and | ||||||
9 | the fiscal impact of not following the State Actuary's | ||||||
10 | recommended changes on the required State contribution. | ||||||
11 | (b) Through State fiscal year 1995, the State contributions | ||||||
12 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
13 | the School Code.
| ||||||
14 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
15 | of each month,
or as soon thereafter as may be practicable, the | ||||||
16 | Board shall submit vouchers
for payment of State contributions | ||||||
17 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
18 | required annual State contribution certified under
subsection | ||||||
19 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
20 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
21 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
22 | excess of the fiscal year 2004
certified contribution amount | ||||||
23 | determined under this Section
after taking into consideration | ||||||
24 | the transfer to the System
under subsection (a) of Section | ||||||
25 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
26 | the State Comptroller and
Treasurer by warrants drawn on the |
| |||||||
| |||||||
1 | funds appropriated to the System for that
fiscal year.
| ||||||
2 | If in any month the amount remaining unexpended from all | ||||||
3 | other appropriations
to the System for the applicable fiscal | ||||||
4 | year (including the appropriations to
the System under Section | ||||||
5 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
6 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
7 | amount
lawfully vouchered under this subsection, the | ||||||
8 | difference shall be paid from the
Common School Fund under the | ||||||
9 | continuing appropriation authority provided in
Section 1.1 of | ||||||
10 | the State Pension Funds Continuing Appropriation Act.
| ||||||
11 | (b-2) Allocations from the Common School Fund apportioned | ||||||
12 | to school
districts not coming under this System shall not be | ||||||
13 | diminished or affected by
the provisions of this Article.
| ||||||
14 | (b-3) For State fiscal years 2015 through 2045, the minimum | ||||||
15 | contribution
to the System to be made by the State for each | ||||||
16 | fiscal year shall be an amount
determined by the System to be | ||||||
17 | sufficient to bring the total assets of the
System up to 100% | ||||||
18 | of the total actuarial liabilities of the System by the end of
| ||||||
19 | State fiscal year 2045. In making these determinations, the | ||||||
20 | required State
contribution shall be calculated each year as a | ||||||
21 | level percentage of payroll
over the years remaining to and | ||||||
22 | including fiscal year 2045 and shall be
determined under the | ||||||
23 | projected unit credit actuarial cost method. | ||||||
24 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
25 | contribution
to the System to be made by the State for each | ||||||
26 | fiscal year shall be an amount
determined by the System to be |
| |||||||
| |||||||
1 | sufficient to bring the total assets of the
System up to 90% of | ||||||
2 | the total actuarial liabilities of the System by the end of
| ||||||
3 | State fiscal year 2045. In making these determinations, the | ||||||
4 | required State
contribution shall be calculated each year as a | ||||||
5 | level percentage of payroll
over the years remaining to and | ||||||
6 | including fiscal year 2045 and shall be
determined under the | ||||||
7 | projected unit credit actuarial cost method.
| ||||||
8 | For State fiscal years 1996 through 2005, the State | ||||||
9 | contribution to the
System, as a percentage of the applicable | ||||||
10 | employee payroll, shall be increased
in equal annual increments | ||||||
11 | so that by State fiscal year 2011, the State is
contributing at | ||||||
12 | the rate required under this Section; except that in the
| ||||||
13 | following specified State fiscal years, the State contribution | ||||||
14 | to the System
shall not be less than the following indicated | ||||||
15 | percentages of the applicable
employee payroll, even if the | ||||||
16 | indicated percentage will produce a State
contribution in | ||||||
17 | excess of the amount otherwise required under this subsection
| ||||||
18 | and subsection (a), and notwithstanding any contrary | ||||||
19 | certification made under
subsection (a-1) before the effective | ||||||
20 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
21 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
22 | 2003; and
13.56% in FY 2004.
| ||||||
23 | Notwithstanding any other provision of this Article, the | ||||||
24 | total required State
contribution for State fiscal year 2006 is | ||||||
25 | $534,627,700.
| ||||||
26 | Notwithstanding any other provision of this Article, the |
| |||||||
| |||||||
1 | total required State
contribution for State fiscal year 2007 is | ||||||
2 | $738,014,500.
| ||||||
3 | For each of State fiscal years 2008 through 2009, the State | ||||||
4 | contribution to
the System, as a percentage of the applicable | ||||||
5 | employee payroll, shall be
increased in equal annual increments | ||||||
6 | from the required State contribution for State fiscal year | ||||||
7 | 2007, so that by State fiscal year 2011, the
State is | ||||||
8 | contributing at the rate otherwise required under this Section.
| ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State contribution for State fiscal year 2010 is | ||||||
11 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
12 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
13 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
14 | expenses determined by the System's share of total bond | ||||||
15 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
16 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
17 | due to the issuance of discounted bonds, if applicable. | ||||||
18 | Notwithstanding any other provision of this Article, the
| ||||||
19 | total required State contribution for State fiscal year 2011 is
| ||||||
20 | the amount recertified by the System on or before April 1, 2011 | ||||||
21 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
22 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
23 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
24 | pro rata share of bond sale
expenses determined by the System's | ||||||
25 | share of total bond
proceeds, (ii) any amounts received from | ||||||
26 | the Common School Fund
in fiscal year 2011, and (iii) any |
| |||||||
| |||||||
1 | reduction in bond proceeds
due to the issuance of discounted | ||||||
2 | bonds, if applicable. This amount shall include, in addition to | ||||||
3 | the amount certified by the System, an amount necessary to meet | ||||||
4 | employer contributions required by the State as an employer | ||||||
5 | under paragraph (e) of this Section, which may also be used by | ||||||
6 | the System for contributions required by paragraph (a) of | ||||||
7 | Section 16-127. | ||||||
8 | Beginning in State fiscal year 2046, the minimum State | ||||||
9 | contribution for
each fiscal year shall be the amount needed to | ||||||
10 | maintain the total assets of
the System at 90% of the total | ||||||
11 | actuarial liabilities of the System.
| ||||||
12 | Amounts received by the System pursuant to Section 25 of | ||||||
13 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
14 | Finance Act in any fiscal year do not reduce and do not | ||||||
15 | constitute payment of any portion of the minimum State | ||||||
16 | contribution required under this Article in that fiscal year. | ||||||
17 | Such amounts shall not reduce, and shall not be included in the | ||||||
18 | calculation of, the required State contributions under this | ||||||
19 | Article in any future year until the System has reached a | ||||||
20 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
21 | to the "required State contribution" or any substantially | ||||||
22 | similar term does not include or apply to any amounts payable | ||||||
23 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
24 | Notwithstanding any other provision of this Code or the | ||||||
25 | Budget Stabilization Act, amounts transferred to the System | ||||||
26 | pursuant to the Budget Stabilization Act after the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 98th General Assembly do not | ||||||
2 | reduce and do not constitute payment of any portion of the | ||||||
3 | required State contribution under this Article in that fiscal | ||||||
4 | year. Such amounts shall not reduce, and shall not be included | ||||||
5 | in the calculation of, the required State contributions under | ||||||
6 | this Article in any future year until the System has received | ||||||
7 | payment of contributions pursuant to the Budget Stabilization | ||||||
8 | Act. | ||||||
9 | Notwithstanding any other provision of this Section, the | ||||||
10 | required State
contribution for State fiscal year 2005 and for | ||||||
11 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
12 | fiscal year 2014 , as
calculated under this Section and
| ||||||
13 | certified under subsection (a-1), shall not exceed an amount | ||||||
14 | equal to (i) the
amount of the required State contribution that | ||||||
15 | would have been calculated under
this Section for that fiscal | ||||||
16 | year if the System had not received any payments
under | ||||||
17 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
18 | Act, minus
(ii) the portion of the State's total debt service | ||||||
19 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
20 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
21 | and certified by the Comptroller, that is the same as the | ||||||
22 | System's portion of
the total moneys distributed under | ||||||
23 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
24 | Act. In determining this maximum for State fiscal years 2008 | ||||||
25 | through 2010, however, the amount referred to in item (i) shall | ||||||
26 | be increased, as a percentage of the applicable employee |
| |||||||
| |||||||
1 | payroll, in equal increments calculated from the sum of the | ||||||
2 | required State contribution for State fiscal year 2007 plus the | ||||||
3 | applicable portion of the State's total debt service payments | ||||||
4 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
5 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
6 | Act, so that, by State fiscal year 2011, the
State is | ||||||
7 | contributing at the rate otherwise required under this Section.
| ||||||
8 | (c) Payment of the required State contributions and of all | ||||||
9 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
10 | other benefits granted
under or assumed by this System, and all | ||||||
11 | expenses in connection with the
administration and operation | ||||||
12 | thereof, are obligations of the State.
| ||||||
13 | If members are paid from special trust or federal funds | ||||||
14 | which are
administered by the employing unit, whether school | ||||||
15 | district or other
unit, the employing unit shall pay to the | ||||||
16 | System from such
funds the full accruing retirement costs based | ||||||
17 | upon that
service, as determined by the System. Employer | ||||||
18 | contributions, based on
salary paid to members from federal | ||||||
19 | funds, may be forwarded by the distributing
agency of the State | ||||||
20 | of Illinois to the System prior to allocation, in an
amount | ||||||
21 | determined in accordance with guidelines established by such
| ||||||
22 | agency and the System.
| ||||||
23 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
24 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
25 | employer's normal cost
of benefits based upon the teacher's | ||||||
26 | service, in addition to
employee contributions, as determined |
| |||||||
| |||||||
1 | by the System. Such employer
contributions shall be forwarded | ||||||
2 | monthly in accordance with guidelines
established by the | ||||||
3 | System.
| ||||||
4 | However, with respect to benefits granted under Section | ||||||
5 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
6 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
7 | (rather than 20%) of the member's
highest annual salary rate | ||||||
8 | for each year of creditable service granted, and
the employer | ||||||
9 | shall also pay the required employee contribution on behalf of
| ||||||
10 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
11 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
12 | 16-106 who is serving in that capacity
while on leave of | ||||||
13 | absence from another employer under this Article shall not
be | ||||||
14 | considered an employee of the employer from which the teacher | ||||||
15 | is on leave.
| ||||||
16 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
17 | shall pay to the System an employer contribution computed as | ||||||
18 | follows:
| ||||||
19 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
20 | employer
contribution shall be equal to 0.3% of each | ||||||
21 | teacher's salary.
| ||||||
22 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
23 | contribution shall be equal to 0.58% of each teacher's | ||||||
24 | salary.
| ||||||
25 | The school district or other employing unit may pay these | ||||||
26 | employer
contributions out of any source of funding available |
| |||||||
| |||||||
1 | for that purpose and
shall forward the contributions to the | ||||||
2 | System on the schedule established
for the payment of member | ||||||
3 | contributions.
| ||||||
4 | These employer contributions are intended to offset a | ||||||
5 | portion of the cost
to the System of the increases in | ||||||
6 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
7 | Each employer of teachers is entitled to a credit against | ||||||
8 | the contributions
required under this subsection (e) with | ||||||
9 | respect to salaries paid to teachers
for the period January 1, | ||||||
10 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
11 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
12 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
13 | paid to teachers for that
period.
| ||||||
14 | The additional 1% employee contribution required under | ||||||
15 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
16 | responsibility of the teacher and not the
teacher's employer, | ||||||
17 | unless the employer agrees, through collective bargaining
or | ||||||
18 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
19 | If an employer is required by a contract in effect on May | ||||||
20 | 1, 1998 between the
employer and an employee organization to | ||||||
21 | pay, on behalf of all its full-time
employees
covered by this | ||||||
22 | Article, all mandatory employee contributions required under
| ||||||
23 | this Article, then the employer shall be excused from paying | ||||||
24 | the employer
contribution required under this subsection (e) | ||||||
25 | for the balance of the term
of that contract. The employer and | ||||||
26 | the employee organization shall jointly
certify to the System |
| |||||||
| |||||||
1 | the existence of the contractual requirement, in such
form as | ||||||
2 | the System may prescribe. This exclusion shall cease upon the
| ||||||
3 | termination, extension, or renewal of the contract at any time | ||||||
4 | after May 1,
1998.
| ||||||
5 | (f) If the amount of a teacher's salary for any school year | ||||||
6 | used to determine final average salary exceeds the member's | ||||||
7 | annual full-time salary rate with the same employer for the | ||||||
8 | previous school year by more than 6%, the teacher's employer | ||||||
9 | shall pay to the System, in addition to all other payments | ||||||
10 | required under this Section and in accordance with guidelines | ||||||
11 | established by the System, the present value of the increase in | ||||||
12 | benefits resulting from the portion of the increase in salary | ||||||
13 | that is in excess of 6%. This present value shall be computed | ||||||
14 | by the System on the basis of the actuarial assumptions and | ||||||
15 | tables used in the most recent actuarial valuation of the | ||||||
16 | System that is available at the time of the computation. If a | ||||||
17 | teacher's salary for the 2005-2006 school year is used to | ||||||
18 | determine final average salary under this subsection (f), then | ||||||
19 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
20 | shall apply in calculating whether the increase in his or her | ||||||
21 | salary is in excess of 6%. For the purposes of this Section, | ||||||
22 | change in employment under Section 10-21.12 of the School Code | ||||||
23 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
24 | The System may require the employer to provide any pertinent | ||||||
25 | information or documentation.
The changes made to this | ||||||
26 | subsection (f) by this amendatory Act of the 94th General |
| |||||||
| |||||||
1 | Assembly apply without regard to whether the teacher was in | ||||||
2 | service on or after its effective date.
| ||||||
3 | Whenever it determines that a payment is or may be required | ||||||
4 | under this subsection, the System shall calculate the amount of | ||||||
5 | the payment and bill the employer for that amount. The bill | ||||||
6 | shall specify the calculations used to determine the amount | ||||||
7 | due. If the employer disputes the amount of the bill, it may, | ||||||
8 | within 30 days after receipt of the bill, apply to the System | ||||||
9 | in writing for a recalculation. The application must specify in | ||||||
10 | detail the grounds of the dispute and, if the employer asserts | ||||||
11 | that the calculation is subject to subsection (g) or (h) of | ||||||
12 | this Section, must include an affidavit setting forth and | ||||||
13 | attesting to all facts within the employer's knowledge that are | ||||||
14 | pertinent to the applicability of that subsection. Upon | ||||||
15 | receiving a timely application for recalculation, the System | ||||||
16 | shall review the application and, if appropriate, recalculate | ||||||
17 | the amount due.
| ||||||
18 | The employer contributions required under this subsection | ||||||
19 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
20 | receipt of the bill. If the employer contributions are not paid | ||||||
21 | within 90 days after receipt of the bill, then interest will be | ||||||
22 | charged at a rate equal to the System's annual actuarially | ||||||
23 | assumed rate of return on investment compounded annually from | ||||||
24 | the 91st day after receipt of the bill. Payments must be | ||||||
25 | concluded within 3 years after the employer's receipt of the | ||||||
26 | bill.
|
| |||||||
| |||||||
1 | (g) This subsection (g) applies only to payments made or | ||||||
2 | salary increases given on or after June 1, 2005 but before July | ||||||
3 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
4 | require the System to refund any payments received before
July | ||||||
5 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
6 | When assessing payment for any amount due under subsection | ||||||
7 | (f), the System shall exclude salary increases paid to teachers | ||||||
8 | under contracts or collective bargaining agreements entered | ||||||
9 | into, amended, or renewed before June 1, 2005.
| ||||||
10 | When assessing payment for any amount due under subsection | ||||||
11 | (f), the System shall exclude salary increases paid to a | ||||||
12 | teacher at a time when the teacher is 10 or more years from | ||||||
13 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
14 | When assessing payment for any amount due under subsection | ||||||
15 | (f), the System shall exclude salary increases resulting from | ||||||
16 | overload work, including summer school, when the school | ||||||
17 | district has certified to the System, and the System has | ||||||
18 | approved the certification, that (i) the overload work is for | ||||||
19 | the sole purpose of classroom instruction in excess of the | ||||||
20 | standard number of classes for a full-time teacher in a school | ||||||
21 | district during a school year and (ii) the salary increases are | ||||||
22 | equal to or less than the rate of pay for classroom instruction | ||||||
23 | computed on the teacher's current salary and work schedule.
| ||||||
24 | When assessing payment for any amount due under subsection | ||||||
25 | (f), the System shall exclude a salary increase resulting from | ||||||
26 | a promotion (i) for which the employee is required to hold a |
| |||||||
| |||||||
1 | certificate or supervisory endorsement issued by the State | ||||||
2 | Teacher Certification Board that is a different certification | ||||||
3 | or supervisory endorsement than is required for the teacher's | ||||||
4 | previous position and (ii) to a position that has existed and | ||||||
5 | been filled by a member for no less than one complete academic | ||||||
6 | year and the salary increase from the promotion is an increase | ||||||
7 | that results in an amount no greater than the lesser of the | ||||||
8 | average salary paid for other similar positions in the district | ||||||
9 | requiring the same certification or the amount stipulated in | ||||||
10 | the collective bargaining agreement for a similar position | ||||||
11 | requiring the same certification.
| ||||||
12 | When assessing payment for any amount due under subsection | ||||||
13 | (f), the System shall exclude any payment to the teacher from | ||||||
14 | the State of Illinois or the State Board of Education over | ||||||
15 | which the employer does not have discretion, notwithstanding | ||||||
16 | that the payment is included in the computation of final | ||||||
17 | average salary.
| ||||||
18 | (h) When assessing payment for any amount due under | ||||||
19 | subsection (f), the System shall exclude any salary increase | ||||||
20 | described in subsection (g) of this Section given on or after | ||||||
21 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
22 | collective bargaining agreement entered into, amended, or | ||||||
23 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
24 | Notwithstanding any other provision of this Section, any | ||||||
25 | payments made or salary increases given after June 30, 2014 | ||||||
26 | shall be used in assessing payment for any amount due under |
| |||||||
| |||||||
1 | subsection (f) of this Section.
| ||||||
2 | (i) The System shall prepare a report and file copies of | ||||||
3 | the report with the Governor and the General Assembly by | ||||||
4 | January 1, 2007 that contains all of the following information: | ||||||
5 | (1) The number of recalculations required by the | ||||||
6 | changes made to this Section by Public Act 94-1057 for each | ||||||
7 | employer. | ||||||
8 | (2) The dollar amount by which each employer's | ||||||
9 | contribution to the System was changed due to | ||||||
10 | recalculations required by Public Act 94-1057. | ||||||
11 | (3) The total amount the System received from each | ||||||
12 | employer as a result of the changes made to this Section by | ||||||
13 | Public Act 94-4. | ||||||
14 | (4) The increase in the required State contribution | ||||||
15 | resulting from the changes made to this Section by Public | ||||||
16 | Act 94-1057.
| ||||||
17 | (j) For purposes of determining the required State | ||||||
18 | contribution to the System, the value of the System's assets | ||||||
19 | shall be equal to the actuarial value of the System's assets, | ||||||
20 | which shall be calculated as follows: | ||||||
21 | As of June 30, 2008, the actuarial value of the System's | ||||||
22 | assets shall be equal to the market value of the assets as of | ||||||
23 | that date. In determining the actuarial value of the System's | ||||||
24 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
25 | gains or losses from investment return incurred in a fiscal | ||||||
26 | year shall be recognized in equal annual amounts over the |
| |||||||
| |||||||
1 | 5-year period following that fiscal year. | ||||||
2 | (k) For purposes of determining the required State | ||||||
3 | contribution to the system for a particular year, the actuarial | ||||||
4 | value of assets shall be assumed to earn a rate of return equal | ||||||
5 | to the system's actuarially assumed rate of return. | ||||||
6 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
7 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
8 | 6-18-12; 97-813, eff. 7-13-12.)
| ||||||
9 | (40 ILCS 5/16-158.2 new) | ||||||
10 | Sec. 16-158.2. Obligations of State; funding guarantee. | ||||||
11 | Pursuant to Article XIII, Section 5 of the 1970 Constitution of | ||||||
12 | the State of Illinois, beginning on July 1, 2013, the State | ||||||
13 | shall, as a retirement benefit to each participant and | ||||||
14 | annuitant of the System be contractually obligated to the | ||||||
15 | System (as a fiduciary and trustee of the participants and | ||||||
16 | annuitants) to pay the annual required State contribution, as | ||||||
17 | determined by the Board of the System using generally accepted | ||||||
18 | actuarial principles, as is necessary to bring the total assets | ||||||
19 | of the System up to 100% of the total actuarial liabilities of | ||||||
20 | the System by the end of State fiscal year 2045. As a further | ||||||
21 | retirement benefit and contractual obligation, each fiscal | ||||||
22 | year, the State shall pay to each designated retirement system | ||||||
23 | the annual required State contribution certified by the Board | ||||||
24 | for that fiscal year. Payments of the annual required State | ||||||
25 | contribution for each fiscal year shall be made in equal |
| |||||||
| |||||||
1 | monthly installments. Additionally, beginning in fiscal year | ||||||
2 | 2014, State transfers to the Pension Stabilization Fund | ||||||
3 | pursuant to Section 20 of the Budget Stabilization Act and | ||||||
4 | payments to the System pursuant to Section 25 of the Budget | ||||||
5 | Stabilization Act shall be further retirement benefits and | ||||||
6 | contractual obligations. The transfers and payments prescribed | ||||||
7 | in Sections 20 and 25 of the Budget Stabilization Act shall not | ||||||
8 | be used by the retirement system when calculation any pension | ||||||
9 | payment until the System has reached a funded level of 100%. | ||||||
10 | This Section and the security it provides to participants and | ||||||
11 | annuitants is intended to be, and is, a contractual right that | ||||||
12 | is part of the pension benefits provided to the participants | ||||||
13 | and annuitants. Notwithstanding anything to the contrary in the | ||||||
14 | Court of Claims Act or any other law, a designated retirement | ||||||
15 | system has the exclusive right to and shall bring a mandamus | ||||||
16 | action in the Circuit Court of Sangamon County against the | ||||||
17 | State to compel the State to make any installment of the annual | ||||||
18 | required State contribution required by this Section, | ||||||
19 | irrespective of other remedies that may be available to the | ||||||
20 | System. Each member or annuitant of the System has the right to | ||||||
21 | in any judicial district in which the System maintains an | ||||||
22 | office if the System fails to bring an action specified in this | ||||||
23 | Section, irrespective of other remedies that may be available | ||||||
24 | to the member or annuitant. In making these determinations, the | ||||||
25 | required State contribution shall be calculated each year as a | ||||||
26 | level percentage of payroll over the years remaining to and |
| |||||||
| |||||||
1 | including fiscal year 2045 and shall be determined under the | ||||||
2 | projected unit credit actuarial cost method. | ||||||
3 | Section 99. Effective date. This Act takes effect July 1, | ||||||
4 | 2013.".
|