Rep. Jay Hoffman
Filed: 3/1/2013
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1 | AMENDMENT TO HOUSE BILL 1166
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2 | AMENDMENT NO. ______. Amend House Bill 1166, 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
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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 adding | ||||||
13 | Sections 2-105.1, 2-105.2, 14-103.40, 14-103.41, 15-107.1, | ||||||
14 | 15-107.2, 16-106.4, 16-106.5, and 16-158.2 and changing | ||||||
15 | Sections 1-103.3, 2-124, 2-125, 2-126, 14-131, 14-132, 14-133, | ||||||
16 | 15-136, 15-155, 15-156, 15-157, 16-133, 16-152, and 16-158 as | ||||||
17 | follows:
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18 | (40 ILCS 5/1-103.3)
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19 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||
20 | standard.
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21 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||
22 | of 1994 that change the method of
calculating, certifying, and | ||||||
23 | paying the required State contributions to the
retirement | ||||||
24 | systems established under Articles 2, 14, 15, 16, and 18 shall
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1 | first apply to the State contributions required for State | ||||||
2 | fiscal year 1996.
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3 | (b) (Blank) The General Assembly declares that a funding | ||||||
4 | ratio (the ratio of a
retirement system's total assets to its | ||||||
5 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||
6 | State-funded retirement systems in Illinois, and it
finds that | ||||||
7 | a funding ratio of 90% is now the generally-recognized norm
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8 | throughout the nation for public employee retirement systems | ||||||
9 | that are
considered to be financially secure and funded in an | ||||||
10 | appropriate and
responsible manner .
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11 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
12 | Government Forecasting and Accountability, in consultation | ||||||
13 | with the affected retirement systems and the
Governor's Office | ||||||
14 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
15 | consider and determine whether the funding goals 90% funding | ||||||
16 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
17 | continue subsection (b) continues to represent an appropriate | ||||||
18 | funding goals goal for
those State-funded retirement systems in | ||||||
19 | Illinois , and it shall report its findings
and recommendations | ||||||
20 | on this subject to the Governor and the General Assembly.
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21 | (Source: P.A. 93-1067, eff. 1-15-05.)
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22 | (40 ILCS 5/2-105.1 new) | ||||||
23 | Sec. 2-105.1. Tier I participant. "Tier I participant": A | ||||||
24 | participant who first became a participant before January 1, | ||||||
25 | 2011 and who is not a Tier I retiree. |
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1 | (40 ILCS 5/2-105.2 new) | ||||||
2 | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | ||||||
3 | former Tier I participant who is receiving a retirement | ||||||
4 | annuity.
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5 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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6 | Sec. 2-124. Contributions by State.
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7 | (a) The State shall make contributions to the System by
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8 | appropriations of amounts which, together with the | ||||||
9 | contributions of
participants, interest earned on investments, | ||||||
10 | and other income
will meet the cost of maintaining and | ||||||
11 | administering the System on a 100% 90%
funded basis in | ||||||
12 | accordance with actuarial recommendations.
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13 | (b) The Board shall determine the amount of State
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14 | contributions required for each fiscal year on the basis of the
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15 | actuarial tables and other assumptions adopted by the Board and | ||||||
16 | the
prescribed rate of interest, using the formula in | ||||||
17 | subsection (c).
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18 | (c) For State fiscal years 2015 through 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 100% | ||||||
22 | of 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 |
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1 | level percentage of payroll
over the years remaining to and | ||||||
2 | including fiscal year 2045 and shall be
determined under the | ||||||
3 | projected unit credit actuarial cost method. | ||||||
4 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
5 | contribution
to the System to be made by the State for each | ||||||
6 | fiscal year shall be an amount
determined by the System to be | ||||||
7 | sufficient to bring the total assets of the
System up to 90% of | ||||||
8 | the total actuarial liabilities of the System by the end of
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9 | State fiscal year 2045. In making these determinations, the | ||||||
10 | required State
contribution shall be calculated each year as a | ||||||
11 | level percentage of payroll
over the years remaining to and | ||||||
12 | including fiscal year 2045 and shall be
determined under the | ||||||
13 | projected unit credit actuarial cost method.
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14 | For State fiscal years 1996 through 2005, the State | ||||||
15 | contribution to
the System, as a percentage of the applicable | ||||||
16 | employee payroll, shall be
increased in equal annual increments | ||||||
17 | so that by State fiscal year 2011, the
State is contributing at | ||||||
18 | the rate 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 2006 is | ||||||
21 | $4,157,000.
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22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State
contribution for State fiscal year 2007 is | ||||||
24 | $5,220,300.
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25 | For each of State fiscal years 2008 through 2009, the State | ||||||
26 | contribution to
the System, as a percentage of the applicable |
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1 | employee payroll, shall be
increased in equal annual increments | ||||||
2 | from the required State contribution for State fiscal year | ||||||
3 | 2007, so that by State fiscal year 2011, the
State is | ||||||
4 | contributing at the rate otherwise required under this Section.
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5 | Notwithstanding any other provision of this Article, the | ||||||
6 | total required State contribution for State fiscal year 2010 is | ||||||
7 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
8 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
9 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
10 | expenses determined by the System's share of total bond | ||||||
11 | proceeds, (ii) any amounts received from the General Revenue | ||||||
12 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
13 | proceeds due to the issuance of discounted bonds, if | ||||||
14 | applicable. | ||||||
15 | Notwithstanding any other provision of this Article, the
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16 | total required State contribution for State fiscal year 2011 is
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17 | the amount recertified by the System on or before April 1, 2011 | ||||||
18 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
19 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
20 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
21 | bond sale
expenses determined by the System's share of total | ||||||
22 | bond
proceeds, (ii) any amounts received from the General | ||||||
23 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
24 | bond
proceeds due to the issuance of discounted bonds, if
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25 | applicable. | ||||||
26 | Beginning in State fiscal year 2046, the minimum State |
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1 | contribution for
each fiscal year shall be the amount needed to | ||||||
2 | maintain the total assets of
the System at 100% 90% of the | ||||||
3 | total actuarial liabilities of the System.
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4 | Amounts received by the System pursuant to Section 25 of | ||||||
5 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
6 | Finance Act in any fiscal year do not reduce and do not | ||||||
7 | constitute payment of any portion of the minimum State | ||||||
8 | contribution required under this Article in that fiscal year. | ||||||
9 | Such amounts shall not reduce, and shall not be included in the | ||||||
10 | calculation of, the required State contributions under this | ||||||
11 | Article in any future year until the System has reached a | ||||||
12 | funding ratio of at least 80% 90% . A reference in this Article | ||||||
13 | to the "required State contribution" or any substantially | ||||||
14 | similar term does not include or apply to any amounts payable | ||||||
15 | to the System under Section 25 of the Budget Stabilization Act.
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16 | Notwithstanding any other provision of this Code or the | ||||||
17 | Budget Stabilization Act, amounts transferred to the System | ||||||
18 | pursuant to the Budget Stabilization Act after the effective | ||||||
19 | date of this amendatory Act of the 98th General Assembly do not | ||||||
20 | reduce and do not constitute payment of any portion of the | ||||||
21 | required State contribution under this Article in that fiscal | ||||||
22 | year. Such amounts shall not reduce, and shall not be included | ||||||
23 | in the calculation of, the required State contributions under | ||||||
24 | this Article in any future year until the System has received | ||||||
25 | payment of contributions pursuant to the Budget Stabilization | ||||||
26 | Act. |
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1 | Notwithstanding any other provision of this Section, the | ||||||
2 | required State
contribution for State fiscal year 2005 and for | ||||||
3 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
4 | fiscal year 2014 , as
calculated under this Section and
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5 | certified under Section 2-134, shall not exceed an amount equal | ||||||
6 | to (i) the
amount of the required State contribution that would | ||||||
7 | have been calculated under
this Section for that fiscal year if | ||||||
8 | the System had not received any payments
under subsection (d) | ||||||
9 | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | ||||||
10 | the portion of the State's total debt service payments for that | ||||||
11 | fiscal
year on the bonds issued in fiscal year 2003 for the | ||||||
12 | purposes of that Section 7.2, as determined
and certified by | ||||||
13 | the Comptroller, that is the same as the System's portion of
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14 | the total moneys distributed under subsection (d) of Section | ||||||
15 | 7.2 of the General
Obligation Bond Act. In determining this | ||||||
16 | maximum for State fiscal years 2008 through 2010, however, the | ||||||
17 | amount referred to in item (i) shall be increased, as a | ||||||
18 | percentage of the applicable employee payroll, in equal | ||||||
19 | increments calculated from the sum of the required State | ||||||
20 | contribution for State fiscal year 2007 plus the applicable | ||||||
21 | portion of the State's total debt service payments for fiscal | ||||||
22 | year 2007 on the bonds issued in fiscal year 2003 for the | ||||||
23 | purposes of Section 7.2 of the General
Obligation Bond Act, so | ||||||
24 | that, by State fiscal year 2011, the
State is contributing at | ||||||
25 | the rate otherwise required under this Section.
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26 | (d) For purposes of determining the required State |
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1 | contribution to the System, the value of the System's assets | ||||||
2 | shall be equal to the actuarial value of the System's assets, | ||||||
3 | which shall be calculated as follows: | ||||||
4 | As of June 30, 2008, the actuarial value of the System's | ||||||
5 | assets shall be equal to the market value of the assets as of | ||||||
6 | that date. In determining the actuarial value of the System's | ||||||
7 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
8 | gains or losses from investment return incurred in a fiscal | ||||||
9 | year shall be recognized in equal annual amounts over the | ||||||
10 | 5-year period following that fiscal year. | ||||||
11 | (e) For purposes of determining the required State | ||||||
12 | contribution to the system for a particular year, the actuarial | ||||||
13 | value of assets shall be assumed to earn a rate of return equal | ||||||
14 | to the system's actuarially assumed rate of return. | ||||||
15 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
16 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
17 | 7-13-12.)
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18 | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
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19 | Sec. 2-125. Obligations of State ; funding guarantee . | ||||||
20 | (a) The payment of (1) the required State contributions, | ||||||
21 | (2) all benefits
granted under this system and (3) all expenses | ||||||
22 | of administration and
operation are obligations of the State to | ||||||
23 | the extent specified in this
Article.
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24 | (b) All income, interest and dividends derived from | ||||||
25 | deposits and investments
shall be credited to the account of |
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1 | the system in the State Treasury and
used to pay benefits under | ||||||
2 | this Article.
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3 | (c) Pursuant to Article XIII, Section 5 of the 1970 | ||||||
4 | Constitution of the State of Illinois, beginning on July 1, | ||||||
5 | 2013, the State shall, as a retirement benefit to each | ||||||
6 | participant and annuitant of the System be contractually | ||||||
7 | obligated to the System (as a fiduciary and trustee of the | ||||||
8 | participants and annuitants) to pay the annual required State | ||||||
9 | contribution, as determined by the Board of the System using | ||||||
10 | generally accepted actuarial principles, as is necessary to | ||||||
11 | bring the total assets of the System up to 100% of the total | ||||||
12 | actuarial liabilities of the System by the end of State fiscal | ||||||
13 | year 2045. As a further retirement benefit and contractual | ||||||
14 | obligation, each fiscal year, the State shall pay to each | ||||||
15 | designated retirement system the annual required State | ||||||
16 | contribution certified by the Board for that fiscal year. | ||||||
17 | Payments of the annual required State contribution for each | ||||||
18 | fiscal year shall be made in equal monthly installments. | ||||||
19 | Additionally, beginning in fiscal year 2014, State transfers to | ||||||
20 | the Pension Stabilization Fund pursuant to Section 20 of the | ||||||
21 | Budget Stabilization Act and payments to the System pursuant to | ||||||
22 | Section 25 of the Budget Stabilization Act shall be further | ||||||
23 | retirement benefits and contractual obligations. The transfers | ||||||
24 | and payments prescribed in Sections 20 and 25 of the Budget | ||||||
25 | Stabilization Act shall not be used by the retirement system | ||||||
26 | when calculation any pension payment until the System has |
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1 | reached a funded level of 100%. This Section and the security | ||||||
2 | it provides to participants and annuitants is intended to be, | ||||||
3 | and is, a contractual right that is part of the pension | ||||||
4 | benefits provided to the participants and annuitants. | ||||||
5 | Notwithstanding anything to the contrary in the Court of Claims | ||||||
6 | Act or any other law, a designated retirement system has the | ||||||
7 | exclusive right to and shall bring a mandamus action in the | ||||||
8 | Circuit Court of Sangamon County against the State to compel | ||||||
9 | the State to make any installment of the annual required State | ||||||
10 | contribution required by this Section, irrespective of other | ||||||
11 | remedies that may be available to the System. Each member or | ||||||
12 | annuitant of the System has the right to in any judicial | ||||||
13 | district in which the System maintains an office if the System | ||||||
14 | fails to bring an action specified in this Section, | ||||||
15 | irrespective of other remedies that may be available to the | ||||||
16 | member or annuitant. 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 | (Source: P.A. 83-1440.)
| ||||||
22 | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
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23 | Sec. 2-126. Contributions by participants.
| ||||||
24 | (a) Each participant shall contribute toward the cost of | ||||||
25 | his or her
retirement annuity a percentage of each payment of |
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| |||||||
1 | salary received by him or
her for service as a member as | ||||||
2 | follows: for service between October 31, 1947
and January 1, | ||||||
3 | 1959, 5%; for service between January 1, 1959 and June 30, | ||||||
4 | 1969,
6%; for service between July 1, 1969 and January 10, | ||||||
5 | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | ||||||
6 | service after December 31, 1981, 8 1/2%.
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7 | (a-5) In addition to the contributions otherwise required | ||||||
8 | under this Article, each Tier I participant shall also make the | ||||||
9 | following contributions toward the cost of his or her | ||||||
10 | retirement annuity from each payment
of salary received by him | ||||||
11 | or her for service as a member: | ||||||
12 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
13 | 1% of salary; and | ||||||
14 | (2) beginning on July 1, 2014, 2% of salary. | ||||||
15 | (b) Beginning August 2, 1949, each male participant, and | ||||||
16 | from July 1,
1971, each female participant shall contribute | ||||||
17 | towards the cost of the
survivor's annuity 2% of salary.
| ||||||
18 | A participant who has no eligible survivor's annuity | ||||||
19 | beneficiary may elect
to cease making contributions for | ||||||
20 | survivor's annuity under this subsection.
A survivor's annuity | ||||||
21 | shall not be payable upon the death of a person who has
made | ||||||
22 | this election, unless prior to that death the election has been | ||||||
23 | revoked
and the amount of the contributions that would have | ||||||
24 | been paid under this
subsection in the absence of the election | ||||||
25 | is paid to the System, together
with interest at the rate of 4% | ||||||
26 | per year from the date the contributions
would have been made |
| |||||||
| |||||||
1 | to the date of payment.
| ||||||
2 | (c) Beginning July 1, 1967, each participant shall | ||||||
3 | contribute 1% of
salary towards the cost of automatic increase | ||||||
4 | in annuity provided in
Section 2-119.1. These contributions | ||||||
5 | shall be made concurrently with
contributions for retirement | ||||||
6 | annuity purposes.
| ||||||
7 | (d) In addition, each participant serving as an officer of | ||||||
8 | the General
Assembly shall contribute, for the same purposes | ||||||
9 | and at the same rates
as are required of a regular participant, | ||||||
10 | on each additional payment
received as an officer. If the | ||||||
11 | participant serves as an
officer for at least 2 but less than 4 | ||||||
12 | years, he or she shall
contribute an amount equal to the amount | ||||||
13 | that would have been contributed
had the participant served as | ||||||
14 | an officer for 4 years. Persons who serve
as officers in the | ||||||
15 | 87th General Assembly but cannot receive the additional
payment | ||||||
16 | to officers because of the ban on increases in salary during | ||||||
17 | their
terms may nonetheless make contributions based on those | ||||||
18 | additional payments
for the purpose of having the additional | ||||||
19 | payments included in their highest
salary for annuity purposes; | ||||||
20 | however, persons electing to make these
additional | ||||||
21 | contributions must also pay an amount representing the
| ||||||
22 | corresponding employer contributions, as calculated by the | ||||||
23 | System.
| ||||||
24 | (e) Notwithstanding any other provision of this Article, | ||||||
25 | the required contribution of a participant who first becomes a | ||||||
26 | participant on or after January 1, 2011 shall not exceed the |
| |||||||
| |||||||
1 | contribution that would be due under this Article if that | ||||||
2 | participant's highest salary for annuity purposes were | ||||||
3 | $106,800, plus any increases in that amount under Section | ||||||
4 | 2-108.1. | ||||||
5 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
6 | (40 ILCS 5/14-103.40 new) | ||||||
7 | Sec. 14-103.40. Tier I member. "Tier I member": A member of | ||||||
8 | this System who first became a member or participant before | ||||||
9 | January 1, 2011 under any reciprocal retirement system or | ||||||
10 | pension fund established under this Code other than a | ||||||
11 | retirement system or pension fund established under Article 2, | ||||||
12 | 3, 4, 5, 6, or 18 of this Code and who is not a Tier I retiree. | ||||||
13 | (40 ILCS 5/14-103.41 new) | ||||||
14 | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former | ||||||
15 | Tier I member who is receiving a retirement annuity.
| ||||||
16 | (40 ILCS 5/14-131)
| ||||||
17 | Sec. 14-131. Contributions by State.
| ||||||
18 | (a) The State shall make contributions to the System by | ||||||
19 | appropriations of
amounts which, together with other employer | ||||||
20 | contributions from trust, federal,
and other funds, employee | ||||||
21 | contributions, investment income, and other income,
will be | ||||||
22 | sufficient to meet the cost of maintaining and administering | ||||||
23 | the System
on a 100% 90% funded basis in accordance with |
| |||||||
| |||||||
1 | actuarial recommendations.
| ||||||
2 | For the purposes of this Section and Section 14-135.08, | ||||||
3 | references to State
contributions refer only to employer | ||||||
4 | contributions and do not include employee
contributions that | ||||||
5 | are picked up or otherwise paid by the State or a
department on | ||||||
6 | behalf of the employee.
| ||||||
7 | (b) The Board shall determine the total amount of State | ||||||
8 | contributions
required for each fiscal year on the basis of the | ||||||
9 | actuarial tables and other
assumptions adopted by the Board, | ||||||
10 | using the formula in subsection (e).
| ||||||
11 | The Board shall also determine a State contribution rate | ||||||
12 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
13 | based on the total required State
contribution for that fiscal | ||||||
14 | year (less the amount received by the System from
| ||||||
15 | appropriations under Section 8.12 of the State Finance Act and | ||||||
16 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
17 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
18 | immediately preceding the applicable November 15
certification | ||||||
19 | deadline), the estimated payroll (including all forms of
| ||||||
20 | compensation) for personal services rendered by eligible | ||||||
21 | employees, and the
recommendations of the actuary.
| ||||||
22 | For the purposes of this Section and Section 14.1 of the | ||||||
23 | State Finance Act,
the term "eligible employees" includes | ||||||
24 | employees who participate in the System,
persons who may elect | ||||||
25 | to participate in the System but have not so elected,
persons | ||||||
26 | who are serving a qualifying period that is required for |
| |||||||
| |||||||
1 | participation,
and annuitants employed by a department as | ||||||
2 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
3 | (c) Contributions shall be made by the several departments | ||||||
4 | for each pay
period by warrants drawn by the State Comptroller | ||||||
5 | against their respective
funds or appropriations based upon | ||||||
6 | vouchers stating the amount to be so
contributed. These amounts | ||||||
7 | shall be based on the full rate certified by the
Board under | ||||||
8 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
9 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
10 | payment of the final payroll from fiscal year 2004
| ||||||
11 | appropriations, the several departments shall not make | ||||||
12 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
13 | instead make payments
as required under subsection (a-1) of | ||||||
14 | Section 14.1 of the State Finance Act.
The several departments | ||||||
15 | shall resume those contributions at the commencement of
fiscal | ||||||
16 | year 2005.
| ||||||
17 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
18 | fiscal years 2010, 2012, and 2013 only, contributions by the | ||||||
19 | several departments are not required to be made for General | ||||||
20 | Revenue Funds payrolls processed by the Comptroller. Payrolls | ||||||
21 | paid by the several departments from all other State funds must | ||||||
22 | continue to be processed pursuant to subsection (c) of this | ||||||
23 | Section. | ||||||
24 | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | ||||||
25 | or as soon as possible after the 15th day of each month, the | ||||||
26 | Board shall submit vouchers for payment of State contributions |
| |||||||
| |||||||
1 | to the System, in a total monthly amount of one-twelfth of the | ||||||
2 | fiscal year General Revenue Fund contribution as certified by | ||||||
3 | the System pursuant to Section 14-135.08 of the Illinois | ||||||
4 | Pension Code. | ||||||
5 | (d) If an employee is paid from trust funds or federal | ||||||
6 | funds, the
department or other employer shall pay employer | ||||||
7 | contributions from those funds
to the System at the certified | ||||||
8 | rate, unless the terms of the trust or the
federal-State | ||||||
9 | agreement preclude the use of the funds for that purpose, in
| ||||||
10 | which case the required employer contributions shall be paid by | ||||||
11 | the State.
From the effective date of this amendatory
Act of | ||||||
12 | the 93rd General Assembly through the payment of the final
| ||||||
13 | payroll from fiscal year 2004 appropriations, the department or | ||||||
14 | other
employer shall not pay contributions for the remainder of | ||||||
15 | fiscal year
2004 but shall instead make payments as required | ||||||
16 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
17 | Act. The department or other employer shall
resume payment of
| ||||||
18 | contributions at the commencement of fiscal year 2005.
| ||||||
19 | (e) For State fiscal years 2015 through 2045, the minimum | ||||||
20 | contribution
to the System to be made by the State for each | ||||||
21 | fiscal year shall be an amount
determined by the System to be | ||||||
22 | sufficient to bring the total assets of the
System up to 100% | ||||||
23 | of the total actuarial liabilities of the System by the end of
| ||||||
24 | State fiscal year 2045. 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 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
4 | contribution
to the System to be made by the State for each | ||||||
5 | fiscal year shall be an amount
determined by the System to be | ||||||
6 | sufficient to bring the total assets of the
System up to 90% of | ||||||
7 | the total actuarial liabilities of the System by the end
of | ||||||
8 | State fiscal year 2045. In making these determinations, the | ||||||
9 | required State
contribution shall be calculated each year as a | ||||||
10 | level percentage of payroll
over the years remaining to and | ||||||
11 | including fiscal year 2045 and shall be
determined under the | ||||||
12 | projected unit credit actuarial cost method.
| ||||||
13 | For State fiscal years 1996 through 2005, the State | ||||||
14 | contribution to
the System, as a percentage of the applicable | ||||||
15 | employee payroll, shall be
increased in equal annual increments | ||||||
16 | so that by State fiscal year 2011, the
State is contributing at | ||||||
17 | the rate required under this Section; except that
(i) for State | ||||||
18 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
19 | law of this State, the certified percentage of the applicable | ||||||
20 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
21 | creditable service under Section
14-110 and 6.500% for all | ||||||
22 | other employees, notwithstanding any contrary
certification | ||||||
23 | made under Section 14-135.08 before the effective date of this
| ||||||
24 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
25 | State fiscal years, the State contribution to
the System shall | ||||||
26 | not be less than the following indicated percentages of the
|
| |||||||
| |||||||
1 | applicable employee payroll, even if the indicated percentage | ||||||
2 | will produce a
State contribution in excess of the amount | ||||||
3 | otherwise required under this
subsection and subsection (a):
| ||||||
4 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
5 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
6 | Notwithstanding any other provision of this Article, the | ||||||
7 | total required State
contribution to the System for State | ||||||
8 | fiscal year 2006 is $203,783,900.
| ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State
contribution to the System for State | ||||||
11 | fiscal year 2007 is $344,164,400.
| ||||||
12 | For each of State fiscal years 2008 through 2009, the State | ||||||
13 | contribution to
the System, as a percentage of the applicable | ||||||
14 | employee payroll, shall be
increased in equal annual increments | ||||||
15 | from the required State contribution for State fiscal year | ||||||
16 | 2007, so that by State fiscal year 2011, the
State is | ||||||
17 | contributing at the rate otherwise required under this Section.
| ||||||
18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State General Revenue Fund contribution for | ||||||
20 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
21 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
22 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
23 | pro rata share of bond sale expenses determined by the System's | ||||||
24 | share of total bond proceeds, (ii) any amounts received from | ||||||
25 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
26 | reduction in bond proceeds due to the issuance of discounted |
| |||||||
| |||||||
1 | bonds, if applicable. | ||||||
2 | Notwithstanding any other provision of this Article, the
| ||||||
3 | total required State General Revenue Fund contribution for
| ||||||
4 | State fiscal year 2011 is the amount recertified by the System | ||||||
5 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
6 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
7 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
8 | Act, less (i) the
pro rata share of bond sale expenses | ||||||
9 | determined by the System's
share of total bond proceeds, (ii) | ||||||
10 | any amounts received from
the General Revenue Fund in fiscal | ||||||
11 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
12 | issuance of discounted
bonds, if applicable. | ||||||
13 | Beginning in State fiscal year 2046, the minimum State | ||||||
14 | contribution for
each fiscal year shall be the amount needed to | ||||||
15 | maintain the total assets of
the System at 90% of the total | ||||||
16 | actuarial liabilities of the System.
| ||||||
17 | Amounts received by the System pursuant to Section 25 of | ||||||
18 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
19 | Finance Act in any fiscal year do not reduce and do not | ||||||
20 | constitute payment of any portion of the minimum State | ||||||
21 | contribution required under this Article in that fiscal year. | ||||||
22 | Such amounts shall not reduce, and shall not be included in the | ||||||
23 | calculation of, the required State contributions under this | ||||||
24 | Article in any future year until the System has reached a | ||||||
25 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
26 | to the "required State contribution" or any substantially |
| |||||||
| |||||||
1 | similar term does not include or apply to any amounts payable | ||||||
2 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
3 | Notwithstanding any other provision of this Code or the | ||||||
4 | Budget Stabilization Act, amounts transferred to the System | ||||||
5 | pursuant to the Budget Stabilization Act after the effective | ||||||
6 | date of this amendatory Act of the 98th General Assembly do not | ||||||
7 | reduce and do not constitute payment of any portion of the | ||||||
8 | required State contribution under this Article in that fiscal | ||||||
9 | year. Such amounts shall not reduce, and shall not be included | ||||||
10 | in the calculation of, the required State contributions under | ||||||
11 | this Article in any future year until the System has received | ||||||
12 | payment of contributions pursuant to the Budget Stabilization | ||||||
13 | Act. | ||||||
14 | Notwithstanding any other provision of this Section, the | ||||||
15 | required State
contribution for State fiscal year 2005 and for | ||||||
16 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
17 | fiscal year 2014 , as
calculated under this Section and
| ||||||
18 | certified under Section 14-135.08, shall not exceed an amount | ||||||
19 | equal to (i) the
amount of the required State contribution that | ||||||
20 | would have been calculated under
this Section for that fiscal | ||||||
21 | year if the System had not received any payments
under | ||||||
22 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
23 | Act, minus
(ii) the portion of the State's total debt service | ||||||
24 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
25 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
26 | and certified by the Comptroller, that is the same as the |
| |||||||
| |||||||
1 | System's portion of
the total moneys distributed under | ||||||
2 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
3 | Act. In determining this maximum for State fiscal years 2008 | ||||||
4 | through 2010, however, the amount referred to in item (i) shall | ||||||
5 | be increased, as a percentage of the applicable employee | ||||||
6 | payroll, in equal increments calculated from the sum of the | ||||||
7 | required State contribution for State fiscal year 2007 plus the | ||||||
8 | applicable portion of the State's total debt service payments | ||||||
9 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
10 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
11 | Act, so that, by State fiscal year 2011, the
State is | ||||||
12 | contributing at the rate otherwise required under this Section.
| ||||||
13 | (f) After the submission of all payments for eligible | ||||||
14 | employees
from personal services line items in fiscal year 2004 | ||||||
15 | have been made,
the Comptroller shall provide to the System a | ||||||
16 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
17 | for personal services that would
have been covered by payments | ||||||
18 | to the System under this Section if the
provisions of this | ||||||
19 | amendatory Act of the 93rd General Assembly had not been
| ||||||
20 | enacted. Upon
receipt of the certification, the System shall | ||||||
21 | determine the amount
due to the System based on the full rate | ||||||
22 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
23 | 2004 in order to meet the State's
obligation under this | ||||||
24 | Section. The System shall compare this amount
due to the amount | ||||||
25 | received by the System in fiscal year 2004 through
payments | ||||||
26 | under this Section and under Section 6z-61 of the State Finance |
| |||||||
| |||||||
1 | Act.
If the amount
due is more than the amount received, the | ||||||
2 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
3 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
4 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
5 | Continuing Appropriation Act. If the amount due is less than | ||||||
6 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
7 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
8 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
9 | the Pension Contribution Fund as soon as practicable
after the | ||||||
10 | certification.
| ||||||
11 | (g) For purposes of determining the required State | ||||||
12 | contribution to the System, the value of the System's assets | ||||||
13 | shall be equal to the actuarial value of the System's assets, | ||||||
14 | which shall be calculated as follows: | ||||||
15 | As of June 30, 2008, the actuarial value of the System's | ||||||
16 | assets shall be equal to the market value of the assets as of | ||||||
17 | that date. In determining the actuarial value of the System's | ||||||
18 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
19 | gains or losses from investment return incurred in a fiscal | ||||||
20 | year shall be recognized in equal annual amounts over the | ||||||
21 | 5-year period following that fiscal year. | ||||||
22 | (h) For purposes of determining the required State | ||||||
23 | contribution to the System for a particular year, the actuarial | ||||||
24 | value of assets shall be assumed to earn a rate of return equal | ||||||
25 | to the System's actuarially assumed rate of return. | ||||||
26 | (i) After the submission of all payments for eligible |
| |||||||
| |||||||
1 | employees from personal services line items paid from the | ||||||
2 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
3 | Comptroller shall provide to the System a certification of the | ||||||
4 | sum of all fiscal year 2010 expenditures for personal services | ||||||
5 | that would have been covered by payments to the System under | ||||||
6 | this Section if the provisions of this amendatory Act of the | ||||||
7 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
8 | certification, the System shall determine the amount due to the | ||||||
9 | System based on the full rate certified by the Board under | ||||||
10 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
11 | State's obligation under this Section. The System shall compare | ||||||
12 | this amount due to the amount received by the System in fiscal | ||||||
13 | year 2010 through payments under this Section. If the amount | ||||||
14 | due is more than the amount received, the difference shall be | ||||||
15 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
16 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
17 | under Section 1.2 of the State Pension Funds Continuing | ||||||
18 | Appropriation Act. If the amount due is less than the amount | ||||||
19 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
20 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
21 | 2010 Overpayment shall be repaid by the System to the General | ||||||
22 | Revenue Fund as soon as practicable after the certification. | ||||||
23 | (j) After the submission of all payments for eligible | ||||||
24 | employees from personal services line items paid from the | ||||||
25 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
26 | Comptroller shall provide to the System a certification of the |
| |||||||
| |||||||
1 | sum of all fiscal year 2011 expenditures for personal services | ||||||
2 | that would have been covered by payments to the System under | ||||||
3 | this Section if the provisions of this amendatory Act of the | ||||||
4 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
5 | certification, the System shall determine the amount due to the | ||||||
6 | System based on the full rate certified by the Board under | ||||||
7 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
8 | State's obligation under this Section. The System shall compare | ||||||
9 | this amount due to the amount received by the System in fiscal | ||||||
10 | year 2011 through payments under this Section. If the amount | ||||||
11 | due is more than the amount received, the difference shall be | ||||||
12 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
13 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
14 | under Section 1.2 of the State Pension Funds Continuing | ||||||
15 | Appropriation Act. If the amount due is less than the amount | ||||||
16 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
17 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
18 | 2011 Overpayment shall be repaid by the System to the General | ||||||
19 | Revenue Fund as soon as practicable after the certification. | ||||||
20 | (k) For fiscal years 2012 and 2013 only, after the | ||||||
21 | submission of all payments for eligible employees from personal | ||||||
22 | services line items paid from the General Revenue Fund in the | ||||||
23 | fiscal year have been made, the Comptroller shall provide to | ||||||
24 | the System a certification of the sum of all expenditures in | ||||||
25 | the fiscal year for personal services. 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 the fiscal year 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 for the | ||||||
5 | fiscal year. If the amount due is more than the amount | ||||||
6 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
7 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
8 | Year Shortfall shall be satisfied under Section 1.2 of the | ||||||
9 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
10 | due is less than the amount received, the difference shall be | ||||||
11 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
12 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
13 | by the System to the General Revenue Fund as soon as | ||||||
14 | practicable after the certification. | ||||||
15 | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | ||||||
16 | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
17 | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | ||||||
18 | eff. 6-30-12.)
| ||||||
19 | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| ||||||
20 | Sec. 14-132. Obligations of State ; funding guarantee . | ||||||
21 | (a) The payment of the required department
contributions, | ||||||
22 | all allowances,
annuities, benefits granted under this | ||||||
23 | Article, and all expenses of
administration of the system are | ||||||
24 | obligations of the State of Illinois to
the extent specified in | ||||||
25 | this Article.
|
| |||||||
| |||||||
1 | (b) All income of the system
shall be credited to a | ||||||
2 | separate account for this system in the State
treasury and | ||||||
3 | shall be used to pay allowances, annuities, benefits and
| ||||||
4 | administration expense.
| ||||||
5 | (c) Pursuant to Article XIII, Section 5 of the 1970 | ||||||
6 | Constitution of the State of Illinois, beginning on July 1, | ||||||
7 | 2013, the State shall, as a retirement benefit to each | ||||||
8 | participant and annuitant of the System be contractually | ||||||
9 | obligated to the System (as a fiduciary and trustee of the | ||||||
10 | participants and annuitants) to pay the annual required State | ||||||
11 | contribution, as determined by the Board of the System using | ||||||
12 | generally accepted actuarial principles, as is necessary to | ||||||
13 | bring the total assets of the System up to 100% of the total | ||||||
14 | actuarial liabilities of the System by the end of State fiscal | ||||||
15 | year 2045. As a further retirement benefit and contractual | ||||||
16 | obligation, each fiscal year, the State shall pay to each | ||||||
17 | designated retirement system the annual required State | ||||||
18 | contribution certified by the Board for that fiscal year. | ||||||
19 | Payments of the annual required State contribution for each | ||||||
20 | fiscal year shall be made in equal monthly installments. | ||||||
21 | Additionally, beginning in fiscal year 2014, State transfers to | ||||||
22 | the Pension Stabilization Fund pursuant to Section 20 of the | ||||||
23 | Budget Stabilization Act and payments to the System pursuant to | ||||||
24 | Section 25 of the Budget Stabilization Act shall be further | ||||||
25 | retirement benefits and contractual obligations. The transfers | ||||||
26 | and payments prescribed in Sections 20 and 25 of the Budget |
| |||||||
| |||||||
1 | Stabilization Act shall not be used by the retirement system | ||||||
2 | when calculation any pension payment until the System has | ||||||
3 | reached a funded level of 100%. This Section and the security | ||||||
4 | it provides to participants and annuitants is intended to be, | ||||||
5 | and is, a contractual right that is part of the pension | ||||||
6 | benefits provided to the participants and annuitants. | ||||||
7 | Notwithstanding anything to the contrary in the Court of Claims | ||||||
8 | Act or any other law, a designated retirement system has the | ||||||
9 | exclusive right to and shall bring a mandamus action in the | ||||||
10 | Circuit Court of Sangamon County against the State to compel | ||||||
11 | the State to make any installment of the annual required State | ||||||
12 | contribution required by this Section, irrespective of other | ||||||
13 | remedies that may be available to the System. Each member or | ||||||
14 | annuitant of the System has the right to in any judicial | ||||||
15 | district in which the System maintains an office if the System | ||||||
16 | fails to bring an action specified in this Section, | ||||||
17 | irrespective of other remedies that may be available to the | ||||||
18 | member or annuitant. In making these determinations, the | ||||||
19 | required State contribution shall be calculated each year as a | ||||||
20 | level percentage of payroll over the years remaining to and | ||||||
21 | including fiscal year 2045 and shall be determined under the | ||||||
22 | projected unit credit actuarial cost method. | ||||||
23 | (Source: P.A. 80-841.)
| ||||||
24 | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| ||||||
25 | Sec. 14-133. Contributions on behalf of members.
|
| |||||||
| |||||||
1 | (a) Each participating employee shall make contributions | ||||||
2 | to the System,
based on the employee's compensation, as | ||||||
3 | follows:
| ||||||
4 | (1) Covered employees, except as indicated below, 3.5% | ||||||
5 | for
retirement annuity, and 0.5% for a widow or survivors
| ||||||
6 | annuity;
| ||||||
7 | (2) Noncovered employees, except as indicated below, | ||||||
8 | 7% for retirement
annuity and 1% for a widow or survivors | ||||||
9 | annuity;
| ||||||
10 | (3) Noncovered employees serving in a position in which | ||||||
11 | "eligible
creditable service" as defined in Section 14-110 | ||||||
12 | may be earned, 1% for a widow
or survivors annuity
plus the | ||||||
13 | following amount for retirement annuity: 8.5% through | ||||||
14 | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | ||||||
15 | in 2004 and thereafter;
| ||||||
16 | (4) Covered employees serving in a position in which | ||||||
17 | "eligible creditable
service" as defined in Section 14-110 | ||||||
18 | may be earned, 0.5% for a widow or survivors annuity
plus | ||||||
19 | the following amount for retirement annuity: 5% through | ||||||
20 | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | ||||||
21 | and thereafter;
| ||||||
22 | (5) Each security employee of the Department of | ||||||
23 | Corrections
or of the Department of Human Services who is a | ||||||
24 | covered employee, 0.5% for a widow or survivors annuity
| ||||||
25 | plus the following amount for retirement annuity: 5% | ||||||
26 | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
| |||||||
| |||||||
1 | in 2004 and thereafter;
| ||||||
2 | (6) Each security employee of the Department of | ||||||
3 | Corrections
or of the Department of Human Services who is | ||||||
4 | not a covered employee, 1% for a widow or survivors annuity
| ||||||
5 | plus the following amount for retirement annuity: 8.5% | ||||||
6 | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | ||||||
7 | 11.5% in 2004 and thereafter.
| ||||||
8 | (a-5) In addition to the contributions otherwise required | ||||||
9 | under this Article, each Tier I participant shall also make the | ||||||
10 | following contributions toward the cost of his or her | ||||||
11 | retirement annuity from each payment
of salary received by him | ||||||
12 | or her for service as a member: | ||||||
13 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
14 | 1% of compensation; and | ||||||
15 | (2) beginning on July 1, 2014, 2% of compensation. | ||||||
16 | (b) Contributions shall be in the form of a deduction from
| ||||||
17 | compensation and shall be made notwithstanding that the | ||||||
18 | compensation
paid in cash to the employee shall be reduced | ||||||
19 | thereby below the minimum
prescribed by law or regulation. Each | ||||||
20 | member is deemed to consent and
agree to the deductions from | ||||||
21 | compensation provided for in this Article,
and shall receipt in | ||||||
22 | full for salary or compensation.
| ||||||
23 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
24 | (40 ILCS 5/15-107.1 new) | ||||||
25 | Sec. 15-107.1. Tier I participant. "Tier I participant": A |
| |||||||
| |||||||
1 | participant under this Article, other than a participant in the | ||||||
2 | self-managed plan under Section 15-158.2, who first became a | ||||||
3 | member or participant before January 1, 2011 under any | ||||||
4 | reciprocal retirement system or pension fund established under | ||||||
5 | this Code other than a retirement system or pension fund | ||||||
6 | established under Article 2, 3, 4, 5, 6, or 18 of this Code and | ||||||
7 | who is not a Tier I retiree. | ||||||
8 | (40 ILCS 5/15-107.2 new) | ||||||
9 | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former | ||||||
10 | Tier I participant who is receiving a retirement annuity.
| ||||||
11 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
12 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
13 | of this
Section 15-136 apply only to those participants who are | ||||||
14 | participating in the
traditional benefit package or the | ||||||
15 | portable benefit package and do not
apply to participants who | ||||||
16 | are participating in the self-managed plan.
| ||||||
17 | (a) The amount of a participant's retirement annuity, | ||||||
18 | expressed in the form
of a single-life annuity, shall be | ||||||
19 | determined by whichever of the following
rules is applicable | ||||||
20 | and provides the largest annuity:
| ||||||
21 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
22 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
23 | for each of the next 10 years of
service, 2.10% for each year | ||||||
24 | of service in excess of 20 but not exceeding 30,
and 2.30% for |
| |||||||
| |||||||
1 | each year in excess of 30; or for persons who retire on or
| ||||||
2 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
3 | each year of
service.
| ||||||
4 | Rule 2: The retirement annuity shall be the sum of the | ||||||
5 | following,
determined from amounts credited to the participant | ||||||
6 | in accordance with the
actuarial tables and the effective rate | ||||||
7 | of interest in effect at the
time the retirement annuity | ||||||
8 | begins:
| ||||||
9 | (i) the normal annuity which can be provided on an | ||||||
10 | actuarially
equivalent basis, by the accumulated normal | ||||||
11 | contributions as of
the date the annuity begins;
| ||||||
12 | (ii) an annuity from employer contributions of an | ||||||
13 | amount equal to that
which can be provided on an | ||||||
14 | actuarially equivalent basis from the accumulated
normal | ||||||
15 | contributions made by the participant under Section | ||||||
16 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
17 | accumulated normal contributions made by
the participant; | ||||||
18 | and
| ||||||
19 | (iii) the annuity that can be provided on an | ||||||
20 | actuarially equivalent basis
from the entire contribution | ||||||
21 | made by the participant under Section 15-113.3.
| ||||||
22 | For the purpose of calculating an annuity under this Rule | ||||||
23 | 2, the contribution required under subsection (c-5) of Section | ||||||
24 | 15-157 shall not be considered when determining the | ||||||
25 | participant's accumulated normal contributions under clause | ||||||
26 | (i) or the employer contribution under clause (ii). |
| |||||||
| |||||||
1 | With respect to a police officer or firefighter who retires | ||||||
2 | on or after
August 14, 1998, the accumulated normal | ||||||
3 | contributions taken into account under
clauses (i) and (ii) of | ||||||
4 | this Rule 2 shall include the additional normal
contributions | ||||||
5 | made by the police officer or firefighter under Section
| ||||||
6 | 15-157(a).
| ||||||
7 | The amount of a retirement annuity calculated under this | ||||||
8 | Rule 2 shall
be computed solely on the basis of the | ||||||
9 | participant's accumulated normal
contributions, as specified | ||||||
10 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
11 | or employer contribution for early retirement under
Section | ||||||
12 | 15-136.2 nor any other employer contribution shall be used in | ||||||
13 | the
calculation of the amount of a retirement annuity under | ||||||
14 | this Rule 2.
| ||||||
15 | This amendatory Act of the 91st General Assembly is a | ||||||
16 | clarification of
existing law and applies to every participant | ||||||
17 | and annuitant without regard to
whether status as an employee | ||||||
18 | terminates before the effective date of this
amendatory Act.
| ||||||
19 | This Rule 2 does not apply to a person who first becomes an | ||||||
20 | employee under this Article on or after July 1, 2005.
| ||||||
21 | Rule 3: The retirement annuity of a participant who is | ||||||
22 | employed
at least one-half time during the period on which his | ||||||
23 | or her final rate of
earnings is based, shall be equal to the | ||||||
24 | participant's years of service
not to exceed 30, multiplied by | ||||||
25 | (1) $96 if the participant's final rate
of earnings is less | ||||||
26 | than $3,500, (2) $108 if the final rate of earnings is
at least |
| |||||||
| |||||||
1 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
2 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
3 | the final rate
of earnings is at least $5,500 but less than | ||||||
4 | $6,500, (5)
$144 if the final rate of earnings is at least | ||||||
5 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
6 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
7 | the final rate of earnings is at least $8,500 but
less than | ||||||
8 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
9 | more, except that the annuity for those persons having made an | ||||||
10 | election under
Section 15-154(a-1) shall be calculated and | ||||||
11 | payable under the portable
retirement benefit program pursuant | ||||||
12 | to the provisions of Section 15-136.4.
| ||||||
13 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
14 | more years of
service as a police officer or firefighter, and a | ||||||
15 | participant who is age 55 or
over and has at least 20 but less | ||||||
16 | than 25 years of service as a police officer
or firefighter, | ||||||
17 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
18 | final rate of earnings for each of the first 10 years of | ||||||
19 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
20 | the next 10 years of service as a
police officer or | ||||||
21 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
22 | officer or firefighter in excess of 20. The retirement annuity | ||||||
23 | for all other
service shall be computed under Rule 1.
| ||||||
24 | For purposes of this Rule 4, a participant's service as a | ||||||
25 | firefighter
shall also include the following:
| ||||||
26 | (i) service that is performed while the person is an |
| |||||||
| |||||||
1 | employee under
subsection (h) of Section 15-107; and
| ||||||
2 | (ii) in the case of an individual who was a | ||||||
3 | participating employee
employed in the fire department of | ||||||
4 | the University of Illinois's
Champaign-Urbana campus | ||||||
5 | immediately prior to the elimination of that fire
| ||||||
6 | department and who immediately after the elimination of | ||||||
7 | that fire department
transferred to another job with the | ||||||
8 | University of Illinois, service performed
as an employee of | ||||||
9 | the University of Illinois in a position other than police
| ||||||
10 | officer or firefighter, from the date of that transfer | ||||||
11 | until the employee's
next termination of service with the | ||||||
12 | University of Illinois.
| ||||||
13 | Rule 5: The retirement annuity of a participant who elected | ||||||
14 | early
retirement under the provisions of Section 15-136.2 and | ||||||
15 | who, on or before
February 16, 1995, brought administrative | ||||||
16 | proceedings pursuant to the
administrative rules adopted by the | ||||||
17 | System to challenge the calculation of his
or her retirement | ||||||
18 | annuity shall be the sum of the following, determined from
| ||||||
19 | amounts credited to the participant in accordance with the | ||||||
20 | actuarial tables and
the prescribed rate of interest in effect | ||||||
21 | at the time the retirement annuity
begins:
| ||||||
22 | (i) the normal annuity which can be provided on an | ||||||
23 | actuarially equivalent
basis, by the accumulated normal | ||||||
24 | contributions as of the date the annuity
begins; and
| ||||||
25 | (ii) an annuity from employer contributions of an | ||||||
26 | amount equal to that
which can be provided on an |
| |||||||
| |||||||
1 | actuarially equivalent basis from the accumulated
normal | ||||||
2 | contributions made by the participant under Section | ||||||
3 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
4 | accumulated normal contributions made by the
participant; | ||||||
5 | and
| ||||||
6 | (iii) an annuity which can be provided on an | ||||||
7 | actuarially equivalent basis
from the employee | ||||||
8 | contribution for early retirement under Section 15-136.2, | ||||||
9 | and
an annuity from employer contributions of an amount | ||||||
10 | equal to that which can be
provided on an actuarially | ||||||
11 | equivalent basis from the employee contribution for
early | ||||||
12 | retirement under Section 15-136.2.
| ||||||
13 | In no event shall a retirement annuity under this Rule 5 be | ||||||
14 | lower than the
amount obtained by adding (1) the monthly amount | ||||||
15 | obtained by dividing the
combined employee and employer | ||||||
16 | contributions made under Section 15-136.2 by the
System's | ||||||
17 | annuity factor for the age of the participant at the beginning | ||||||
18 | of the
annuity payment period and (2) the amount equal to the | ||||||
19 | participant's annuity if
calculated under Rule 1, reduced under | ||||||
20 | Section 15-136(b) as if no
contributions had been made under | ||||||
21 | Section 15-136.2.
| ||||||
22 | With respect to a participant who is qualified for a | ||||||
23 | retirement annuity under
this Rule 5 whose retirement annuity | ||||||
24 | began before the effective date of this
amendatory Act of the | ||||||
25 | 91st General Assembly, and for whom an employee
contribution | ||||||
26 | was made under Section 15-136.2, the System shall recalculate |
| |||||||
| |||||||
1 | the
retirement annuity under this Rule 5 and shall pay any | ||||||
2 | additional amounts due
in the manner provided in Section | ||||||
3 | 15-186.1 for benefits mistakenly set too low.
| ||||||
4 | The amount of a retirement annuity calculated under this | ||||||
5 | Rule 5 shall be
computed solely on the basis of those | ||||||
6 | contributions specifically set forth in
this Rule 5. Except as | ||||||
7 | provided in clause (iii) of this Rule 5, neither an
employee | ||||||
8 | nor employer contribution for early retirement under Section | ||||||
9 | 15-136.2,
nor any other employer contribution, shall be used in | ||||||
10 | the calculation of the
amount of a retirement annuity under | ||||||
11 | this Rule 5.
| ||||||
12 | The General Assembly has adopted the changes set forth in | ||||||
13 | Section 25 of this
amendatory Act of the 91st General Assembly | ||||||
14 | in recognition that the decision of
the Appellate Court for the | ||||||
15 | Fourth District in Mattis v. State Universities
Retirement | ||||||
16 | System et al. might be deemed to give some right to the | ||||||
17 | plaintiff in
that case. The changes made by Section 25 of this | ||||||
18 | amendatory Act of the 91st
General Assembly are a legislative | ||||||
19 | implementation of the decision of the
Appellate Court for the | ||||||
20 | Fourth District in Mattis v. State Universities
Retirement | ||||||
21 | System et al. with respect to that plaintiff.
| ||||||
22 | The changes made by Section 25 of this amendatory Act of | ||||||
23 | the 91st General
Assembly apply without regard to whether the | ||||||
24 | person is in service as an
employee on or after its effective | ||||||
25 | date.
| ||||||
26 | (b) The retirement annuity provided under Rules 1 and 3 |
| |||||||
| |||||||
1 | above shall be
reduced by 1/2 of 1% for each month the | ||||||
2 | participant is under age 60 at the
time of retirement. However, | ||||||
3 | this reduction shall not apply in the following
cases:
| ||||||
4 | (1) For a disabled participant whose disability | ||||||
5 | benefits have been
discontinued because he or she has | ||||||
6 | exhausted eligibility for disability
benefits under clause | ||||||
7 | (6) of Section 15-152;
| ||||||
8 | (2) For a participant who has at least the number of | ||||||
9 | years of service
required to retire at any age under | ||||||
10 | subsection (a) of Section 15-135; or
| ||||||
11 | (3) For that portion of a retirement annuity which has | ||||||
12 | been provided on
account of service of the participant | ||||||
13 | during periods when he or she performed
the duties of a | ||||||
14 | police officer or firefighter, if these duties were | ||||||
15 | performed
for at least 5 years immediately preceding the | ||||||
16 | date the retirement annuity
is to begin.
| ||||||
17 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
18 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
19 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
20 | Code of 1986, as such Section may be
amended from time to time | ||||||
21 | and as such benefit limits shall be adjusted by
the | ||||||
22 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
23 | earnings.
| ||||||
24 | (d) An annuitant whose status as an employee terminates | ||||||
25 | after August 14,
1969 shall receive automatic increases in his | ||||||
26 | or her retirement annuity as
follows:
|
| |||||||
| |||||||
1 | Effective January 1 immediately following the date the | ||||||
2 | retirement annuity
begins, the annuitant shall receive an | ||||||
3 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
4 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
5 | Rule 3, Rule 4, or Rule 5, contained in this
Section, | ||||||
6 | multiplied by
the number of full months which elapsed from the | ||||||
7 | date the retirement annuity
payments began to January 1, 1972, | ||||||
8 | plus 0.1667% of such annuity, multiplied by
the number of full | ||||||
9 | months which elapsed from January 1, 1972, or the date the
| ||||||
10 | retirement annuity payments began, whichever is later, to | ||||||
11 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
12 | number of full months which elapsed
from January 1, 1978, or | ||||||
13 | the date the retirement annuity payments began,
whichever is | ||||||
14 | later, to the effective date of the increase.
| ||||||
15 | The annuitant shall receive an increase in his or her | ||||||
16 | monthly retirement
annuity on each January 1 thereafter during | ||||||
17 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
18 | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | ||||||
19 | this Section. The change made under this subsection by P.A. | ||||||
20 | 81-970 is
effective January 1, 1980 and applies to each | ||||||
21 | annuitant whose status as
an employee terminates before or | ||||||
22 | after that date.
| ||||||
23 | Beginning January 1, 1990, all automatic annual increases | ||||||
24 | payable under
this Section shall be calculated as a percentage | ||||||
25 | of the total annuity
payable at the time of the increase, | ||||||
26 | including all increases previously
granted under this Article.
|
| |||||||
| |||||||
1 | The change made in this subsection by P.A. 85-1008 is | ||||||
2 | effective January
26, 1988, and is applicable without regard to | ||||||
3 | whether status as an employee
terminated before that date.
| ||||||
4 | (e) If, on January 1, 1987, or the date the retirement | ||||||
5 | annuity payment
period begins, whichever is later, the sum of | ||||||
6 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
7 | Section
and the automatic annual increases provided under the | ||||||
8 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
9 | the retirement
annuity which would be provided by Rule 3, the | ||||||
10 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
11 | the date the
retirement annuity payment period begins, | ||||||
12 | whichever is later, to the amount
which would be provided by | ||||||
13 | Rule 3 of this Section. Such increased
amount shall be | ||||||
14 | considered as the retirement annuity in determining
benefits | ||||||
15 | provided under other Sections of this Article. This paragraph
| ||||||
16 | applies without regard to whether status as an employee | ||||||
17 | terminated before the
effective date of this amendatory Act of | ||||||
18 | 1987, provided that the annuitant was
employed at least | ||||||
19 | one-half time during the period on which the final rate of
| ||||||
20 | earnings was based.
| ||||||
21 | (f) A participant is entitled to such additional annuity as | ||||||
22 | may be provided
on an actuarially equivalent basis, by any | ||||||
23 | accumulated
additional contributions to his or her credit. | ||||||
24 | However,
the additional contributions made by the participant | ||||||
25 | toward the automatic
increases in annuity provided under this | ||||||
26 | Section and the contributions made under subsection (c-5) of |
| |||||||
| |||||||
1 | Section 15-157 by this amendatory Act of the 98th General | ||||||
2 | Assembly shall not be taken into
account in determining the | ||||||
3 | amount of such additional annuity.
| ||||||
4 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
5 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
6 | or in part to an employer, and (2)
a participant transfers | ||||||
7 | employment from such governmental unit to such employer
within | ||||||
8 | 6 months after the transfer of the function, and (3) the sum of | ||||||
9 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
10 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
11 | participant by all other retirement
systems covered by Article | ||||||
12 | 20, and (C) the initial primary insurance amount to
which the | ||||||
13 | participant is entitled under the Social Security Act, is less | ||||||
14 | than
the retirement annuity which would have been payable if | ||||||
15 | all of the
participant's pension credits validated under | ||||||
16 | Section 20-109 had been validated
under this system, a | ||||||
17 | supplemental annuity equal to the difference in such
amounts | ||||||
18 | shall be payable to the participant.
| ||||||
19 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
20 | retirement annuity on or before January 1, 1971 shall have his | ||||||
21 | or her
retirement annuity then being paid increased $1 per | ||||||
22 | month for
each year of creditable service. On January 1, 1982, | ||||||
23 | an annuitant whose
retirement annuity began on or before | ||||||
24 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
25 | being paid increased $1 per month for each year of
creditable | ||||||
26 | service.
|
| |||||||
| |||||||
1 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
2 | annuity began on or
before January 1, 1977, shall have the | ||||||
3 | monthly retirement annuity increased by
an amount equal to 8¢ | ||||||
4 | per year of creditable service times the number of years
that | ||||||
5 | have elapsed since the annuity began.
| ||||||
6 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| ||||||
7 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
8 | Sec. 15-155. Employer contributions.
| ||||||
9 | (a) The State of Illinois shall make contributions by | ||||||
10 | appropriations of
amounts which, together with the other | ||||||
11 | employer contributions from trust,
federal, and other funds, | ||||||
12 | employee contributions, income from investments,
and other | ||||||
13 | income of this System, will be sufficient to meet the cost of
| ||||||
14 | maintaining and administering the System on a 100% 90% funded | ||||||
15 | basis in accordance
with actuarial recommendations.
| ||||||
16 | The Board shall determine the amount of State contributions | ||||||
17 | required for
each fiscal year on the basis of the actuarial | ||||||
18 | tables and other assumptions
adopted by the Board and the | ||||||
19 | recommendations of the actuary, using the formula
in subsection | ||||||
20 | (a-1).
| ||||||
21 | (a-1) For State fiscal years 2015 through 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 100% | ||||||
25 | of the total actuarial liabilities of the System by the end of
|
| |||||||
| |||||||
1 | State fiscal year 2045. In making these determinations, the | ||||||
2 | required State
contribution shall be calculated each year as a | ||||||
3 | level percentage of payroll
over the years remaining to and | ||||||
4 | including fiscal year 2045 and shall be
determined under the | ||||||
5 | projected unit credit actuarial cost method. | ||||||
6 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
7 | contribution
to the System to be made by the State for each | ||||||
8 | fiscal year shall be an amount
determined by the System to be | ||||||
9 | sufficient to bring the total assets of the
System up to 90% of | ||||||
10 | the total actuarial liabilities of the System by the end of
| ||||||
11 | State fiscal year 2045. In making these determinations, the | ||||||
12 | required State
contribution shall be calculated each year as a | ||||||
13 | level percentage of payroll
over the years remaining to and | ||||||
14 | including fiscal year 2045 and shall be
determined under the | ||||||
15 | projected unit credit actuarial cost method.
| ||||||
16 | For State fiscal years 1996 through 2005, the State | ||||||
17 | contribution to
the System, as a percentage of the applicable | ||||||
18 | employee payroll, shall be
increased in equal annual increments | ||||||
19 | so that by State fiscal year 2011, the
State is contributing at | ||||||
20 | the rate required under this Section.
| ||||||
21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State
contribution for State fiscal year 2006 is | ||||||
23 | $166,641,900.
| ||||||
24 | Notwithstanding any other provision of this Article, the | ||||||
25 | total required State
contribution for State fiscal year 2007 is | ||||||
26 | $252,064,100.
|
| |||||||
| |||||||
1 | For each of State fiscal years 2008 through 2009, the State | ||||||
2 | contribution to
the System, as a percentage of the applicable | ||||||
3 | employee payroll, shall be
increased in equal annual increments | ||||||
4 | from the required State contribution for State fiscal year | ||||||
5 | 2007, so that by State fiscal year 2011, the
State is | ||||||
6 | contributing at the rate otherwise required under this Section.
| ||||||
7 | Notwithstanding any other provision of this Article, the | ||||||
8 | total required State contribution for State fiscal year 2010 is | ||||||
9 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
10 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
11 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
12 | share of bond sale expenses determined by the System's share of | ||||||
13 | total bond proceeds, (ii) any amounts received from the General | ||||||
14 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
15 | proceeds due to the issuance of discounted bonds, if | ||||||
16 | applicable. | ||||||
17 | Notwithstanding any other provision of this Article, the
| ||||||
18 | total required State contribution for State fiscal year 2011 is
| ||||||
19 | the amount recertified by the System on or before April 1, 2011 | ||||||
20 | pursuant to Section 15-165 and shall be made from the State | ||||||
21 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
22 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
23 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
24 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
25 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
26 | (iii) any reduction in bond
proceeds due to the issuance of |
| |||||||
| |||||||
1 | discounted bonds, if
applicable. | ||||||
2 | Beginning in State fiscal year 2046, the minimum State | ||||||
3 | contribution for
each fiscal year shall be the amount needed to | ||||||
4 | maintain the total assets of
the System at 90% of the total | ||||||
5 | actuarial liabilities of the System.
| ||||||
6 | Amounts received by the System pursuant to Section 25 of | ||||||
7 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
8 | Finance Act in any fiscal year do not reduce and do not | ||||||
9 | constitute payment of any portion of the minimum State | ||||||
10 | contribution required under this Article in that fiscal year. | ||||||
11 | Such amounts shall not reduce, and shall not be included in the | ||||||
12 | calculation of, the required State contributions under this | ||||||
13 | Article in any future year until the System has reached a | ||||||
14 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
15 | to the "required State contribution" or any substantially | ||||||
16 | similar term does not include or apply to any amounts payable | ||||||
17 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
18 | Notwithstanding any other provision of this Code or the | ||||||
19 | Budget Stabilization Act, amounts transferred to the System | ||||||
20 | pursuant to the Budget Stabilization Act after the effective | ||||||
21 | date of this amendatory Act of the 98th General Assembly do not | ||||||
22 | reduce and do not constitute payment of any portion of the | ||||||
23 | required State contribution under this Article in that fiscal | ||||||
24 | year. Such amounts shall not reduce, and shall not be included | ||||||
25 | in the calculation of, the required State contributions under | ||||||
26 | this Article in any future year until the System has received |
| |||||||
| |||||||
1 | payment of contributions pursuant to the Budget Stabilization | ||||||
2 | Act. | ||||||
3 | Notwithstanding any other provision of this Section, the | ||||||
4 | required State
contribution for State fiscal year 2005 and for | ||||||
5 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
6 | fiscal year 2014 , as
calculated under this Section and
| ||||||
7 | certified under Section 15-165, shall not exceed an amount | ||||||
8 | equal to (i) the
amount of the required State contribution that | ||||||
9 | would have been calculated under
this Section for that fiscal | ||||||
10 | year if the System had not received any payments
under | ||||||
11 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
12 | Act, minus
(ii) the portion of the State's total debt service | ||||||
13 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
14 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
15 | and certified by the Comptroller, that is the same as the | ||||||
16 | System's portion of
the total moneys distributed under | ||||||
17 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
18 | Act. In determining this maximum for State fiscal years 2008 | ||||||
19 | through 2010, however, the amount referred to in item (i) shall | ||||||
20 | be increased, as a percentage of the applicable employee | ||||||
21 | payroll, in equal increments calculated from the sum of the | ||||||
22 | required State contribution for State fiscal year 2007 plus the | ||||||
23 | applicable portion of the State's total debt service payments | ||||||
24 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
25 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
26 | Act, so that, by State fiscal year 2011, the
State is |
| |||||||
| |||||||
1 | contributing at the rate otherwise required under this Section.
| ||||||
2 | (b) If an employee is paid from trust or federal funds, the | ||||||
3 | employer
shall pay to the Board contributions from those funds | ||||||
4 | which are
sufficient to cover the accruing normal costs on | ||||||
5 | behalf of the employee.
However, universities having employees | ||||||
6 | who are compensated out of local
auxiliary funds, income funds, | ||||||
7 | or service enterprise funds are not required
to pay such | ||||||
8 | contributions on behalf of those employees. The local auxiliary
| ||||||
9 | funds, income funds, and service enterprise funds of | ||||||
10 | universities shall not be
considered trust funds for the | ||||||
11 | purpose of this Article, but funds of alumni
associations, | ||||||
12 | foundations, and athletic associations which are affiliated | ||||||
13 | with
the universities included as employers under this Article | ||||||
14 | and other employers
which do not receive State appropriations | ||||||
15 | are considered to be trust funds for
the purpose of this | ||||||
16 | Article.
| ||||||
17 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
18 | each make
employer contributions to this System for their | ||||||
19 | respective firefighter
employees who participate in this | ||||||
20 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
21 | of contributions to be made by those municipalities shall
be | ||||||
22 | determined annually by the Board on the basis of the actuarial | ||||||
23 | assumptions
adopted by the Board and the recommendations of the | ||||||
24 | actuary, and shall be
expressed as a percentage of salary for | ||||||
25 | each such employee. The Board shall
certify the rate to the | ||||||
26 | affected municipalities as soon as may be practical.
The |
| |||||||
| |||||||
1 | employer contributions required under this subsection shall be | ||||||
2 | remitted by
the municipality to the System at the same time and | ||||||
3 | in the same manner as
employee contributions.
| ||||||
4 | (c) Through State fiscal year 1995: The total employer | ||||||
5 | contribution shall
be apportioned among the various funds of | ||||||
6 | the State and other employers,
whether trust, federal, or other | ||||||
7 | funds, in accordance with actuarial procedures
approved by the | ||||||
8 | Board. State of Illinois contributions for employers receiving
| ||||||
9 | State appropriations for personal services shall be payable | ||||||
10 | from appropriations
made to the employers or to the System. The | ||||||
11 | contributions for Class I
community colleges covering earnings | ||||||
12 | other than those paid from trust and
federal funds, shall be | ||||||
13 | payable solely from appropriations to the Illinois
Community | ||||||
14 | College Board or the System for employer contributions.
| ||||||
15 | (d) Beginning in State fiscal year 1996, the required State | ||||||
16 | contributions
to the System shall be appropriated directly to | ||||||
17 | the System and shall be payable
through vouchers issued in | ||||||
18 | accordance with subsection (c) of Section 15-165, except as | ||||||
19 | provided in subsection (g).
| ||||||
20 | (e) The State Comptroller shall draw warrants payable to | ||||||
21 | the System upon
proper certification by the System or by the | ||||||
22 | employer in accordance with the
appropriation laws and this | ||||||
23 | Code.
| ||||||
24 | (f) Normal costs under this Section means liability for
| ||||||
25 | pensions and other benefits which accrues to the System because | ||||||
26 | of the
credits earned for service rendered by the participants |
| |||||||
| |||||||
1 | during the
fiscal year and expenses of administering the | ||||||
2 | System, but shall not
include the principal of or any | ||||||
3 | redemption premium or interest on any bonds
issued by the Board | ||||||
4 | or any expenses incurred or deposits required in
connection | ||||||
5 | therewith.
| ||||||
6 | (g) If the amount of a participant's earnings for any | ||||||
7 | academic year used to determine the final rate of earnings, | ||||||
8 | determined on a full-time equivalent basis, exceeds the amount | ||||||
9 | of his or her earnings with the same employer for the previous | ||||||
10 | academic year, determined on a full-time equivalent basis, by | ||||||
11 | more than 6%, the participant's employer shall pay to the | ||||||
12 | System, in addition to all other payments required under this | ||||||
13 | Section and in accordance with guidelines established by the | ||||||
14 | System, the present value of the increase in benefits resulting | ||||||
15 | from the portion of the increase in earnings that is in excess | ||||||
16 | of 6%. This present value shall be computed by the System on | ||||||
17 | the basis of the actuarial assumptions and tables used in the | ||||||
18 | most recent actuarial valuation of the System that is available | ||||||
19 | at the time of the computation. The System may require the | ||||||
20 | employer to provide any pertinent information or | ||||||
21 | documentation. | ||||||
22 | Whenever it determines that a payment is or may be required | ||||||
23 | under this subsection (g), the System shall calculate the | ||||||
24 | amount of the payment and bill the employer for that amount. | ||||||
25 | The bill shall specify the calculations used to determine the | ||||||
26 | amount due. If the employer disputes the amount of the bill, it |
| |||||||
| |||||||
1 | may, within 30 days after receipt of the bill, apply to the | ||||||
2 | System in writing for a recalculation. The application must | ||||||
3 | specify in detail the grounds of the dispute and, if the | ||||||
4 | employer asserts that the calculation is subject to subsection | ||||||
5 | (h) or (i) of this Section, must include an affidavit setting | ||||||
6 | forth and attesting to all facts within the employer's | ||||||
7 | knowledge that are pertinent to the applicability of subsection | ||||||
8 | (h) or (i). Upon receiving a timely application for | ||||||
9 | recalculation, the System shall review the application and, if | ||||||
10 | appropriate, recalculate the amount due.
| ||||||
11 | The employer contributions required under this subsection | ||||||
12 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
13 | after receipt of the bill. If the employer contributions are | ||||||
14 | not paid within 90 days after receipt of the bill, then | ||||||
15 | interest will be charged at a rate equal to the System's annual | ||||||
16 | actuarially assumed rate of return on investment compounded | ||||||
17 | annually from the 91st day after receipt of the bill. Payments | ||||||
18 | must be concluded within 3 years after the employer's receipt | ||||||
19 | of the bill. | ||||||
20 | (h) This subsection (h) applies only to payments made or | ||||||
21 | salary increases given on or after June 1, 2005 but before July | ||||||
22 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
23 | require the System to refund any payments received before July | ||||||
24 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
25 | When assessing payment for any amount due under subsection | ||||||
26 | (g), the System shall exclude earnings increases paid to |
| |||||||
| |||||||
1 | participants under contracts or collective bargaining | ||||||
2 | agreements entered into, amended, or renewed before June 1, | ||||||
3 | 2005.
| ||||||
4 | When assessing payment for any amount due under subsection | ||||||
5 | (g), the System shall exclude earnings increases paid to a | ||||||
6 | participant at a time when the participant is 10 or more years | ||||||
7 | from retirement eligibility under Section 15-135.
| ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (g), the System shall exclude earnings increases resulting from | ||||||
10 | overload work, including a contract for summer teaching, or | ||||||
11 | overtime when the employer has certified to the System, and the | ||||||
12 | System has approved the certification, that: (i) in the case of | ||||||
13 | overloads (A) the overload work is for the sole purpose of | ||||||
14 | academic instruction in excess of the standard number of | ||||||
15 | instruction hours for a full-time employee occurring during the | ||||||
16 | academic year that the overload is paid and (B) the earnings | ||||||
17 | increases are equal to or less than the rate of pay for | ||||||
18 | academic instruction computed using the participant's current | ||||||
19 | salary rate and work schedule; and (ii) in the case of | ||||||
20 | overtime, the overtime was necessary for the educational | ||||||
21 | mission. | ||||||
22 | When assessing payment for any amount due under subsection | ||||||
23 | (g), the System shall exclude any earnings increase resulting | ||||||
24 | from (i) a promotion for which the employee moves from one | ||||||
25 | classification to a higher classification under the State | ||||||
26 | Universities Civil Service System, (ii) a promotion in academic |
| |||||||
| |||||||
1 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
2 | promotion that the Illinois Community College Board has | ||||||
3 | recommended in accordance with subsection (k) of this Section. | ||||||
4 | These earnings increases shall be excluded only if the | ||||||
5 | promotion is to a position that has existed and been filled by | ||||||
6 | a member for no less than one complete academic year and the | ||||||
7 | earnings increase as a result of the promotion is an increase | ||||||
8 | that results in an amount no greater than the average salary | ||||||
9 | paid for other similar positions. | ||||||
10 | (i) When assessing payment for any amount due under | ||||||
11 | subsection (g), the System shall exclude any salary increase | ||||||
12 | described in subsection (h) of this Section given on or after | ||||||
13 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
14 | collective bargaining agreement entered into, amended, or | ||||||
15 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
16 | Notwithstanding any other provision of this Section, any | ||||||
17 | payments made or salary increases given after June 30, 2014 | ||||||
18 | shall be used in assessing payment for any amount due under | ||||||
19 | subsection (g) of this Section.
| ||||||
20 | (j) The System shall prepare a report and file copies of | ||||||
21 | the report with the Governor and the General Assembly by | ||||||
22 | January 1, 2007 that contains all of the following information: | ||||||
23 | (1) The number of recalculations required by the | ||||||
24 | changes made to this Section by Public Act 94-1057 for each | ||||||
25 | employer. | ||||||
26 | (2) The dollar amount by which each employer's |
| |||||||
| |||||||
1 | contribution to the System was changed due to | ||||||
2 | recalculations required by Public Act 94-1057. | ||||||
3 | (3) The total amount the System received from each | ||||||
4 | employer as a result of the changes made to this Section by | ||||||
5 | Public Act 94-4. | ||||||
6 | (4) The increase in the required State contribution | ||||||
7 | resulting from the changes made to this Section by Public | ||||||
8 | Act 94-1057. | ||||||
9 | (k) The Illinois Community College Board shall adopt rules | ||||||
10 | for recommending lists of promotional positions submitted to | ||||||
11 | the Board by community colleges and for reviewing the | ||||||
12 | promotional lists on an annual basis. When recommending | ||||||
13 | promotional lists, the Board shall consider the similarity of | ||||||
14 | the positions submitted to those positions recognized for State | ||||||
15 | universities by the State Universities Civil Service System. | ||||||
16 | The Illinois Community College Board shall file a copy of its | ||||||
17 | findings with the System. The System shall consider the | ||||||
18 | findings of the Illinois Community College Board when making | ||||||
19 | determinations under this Section. The System shall not exclude | ||||||
20 | any earnings increases resulting from a promotion when the | ||||||
21 | promotion was not submitted by a community college. Nothing in | ||||||
22 | this subsection (k) shall require any community college to | ||||||
23 | submit any information to the Community College Board.
| ||||||
24 | (l) For purposes of determining the required State | ||||||
25 | contribution to the System, the value of the System's assets | ||||||
26 | shall be equal to the actuarial value of the System's assets, |
| |||||||
| |||||||
1 | which shall be calculated as follows: | ||||||
2 | As of June 30, 2008, the actuarial value of the System's | ||||||
3 | assets shall be equal to the market value of the assets as of | ||||||
4 | that date. In determining the actuarial value of the System's | ||||||
5 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
6 | gains or losses from investment return incurred in a fiscal | ||||||
7 | year shall be recognized in equal annual amounts over the | ||||||
8 | 5-year period following that fiscal year. | ||||||
9 | (m) For purposes of determining the required State | ||||||
10 | contribution to the system for a particular year, the actuarial | ||||||
11 | value of assets shall be assumed to earn a rate of return equal | ||||||
12 | to the system's actuarially assumed rate of return. | ||||||
13 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
14 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
15 | 7-13-12; revised 10-17-12.)
| ||||||
16 | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
| ||||||
17 | Sec. 15-156. Obligations of State ; funding guarantees . | ||||||
18 | (a) The payment of (1) the
required State contributions, | ||||||
19 | (2) all benefits
granted under this system and (3) all expenses | ||||||
20 | in connection with the
administration and operation thereof are | ||||||
21 | obligations of the State of
Illinois to the extent specified in | ||||||
22 | this Article. The accumulated
employee normal, additional and | ||||||
23 | survivors insurance contributions
credited to the accounts of | ||||||
24 | active and inactive participants
shall not be used to pay the | ||||||
25 | State's share of the obligations.
|
| |||||||
| |||||||
1 | (c) Pursuant to Article XIII, Section 5 of the 1970 | ||||||
2 | Constitution of the State of Illinois, beginning on July 1, | ||||||
3 | 2013, the State shall, as a retirement benefit to each | ||||||
4 | participant and annuitant of the System be contractually | ||||||
5 | obligated to the System (as a fiduciary and trustee of the | ||||||
6 | participants and annuitants) to pay the annual required State | ||||||
7 | contribution, as determined by the Board of the System using | ||||||
8 | generally accepted actuarial principles, as is necessary to | ||||||
9 | bring the total assets of the System up to 100% of the total | ||||||
10 | actuarial liabilities of the System by the end of State fiscal | ||||||
11 | year 2045. As a further retirement benefit and contractual | ||||||
12 | obligation, each fiscal year, the State shall pay to each | ||||||
13 | designated retirement system the annual required State | ||||||
14 | contribution certified by the Board for that fiscal year. | ||||||
15 | Payments of the annual required State contribution for each | ||||||
16 | fiscal year shall be made in equal monthly installments. | ||||||
17 | Additionally, beginning in fiscal year 2014, State transfers to | ||||||
18 | the Pension Stabilization Fund pursuant to Section 20 of the | ||||||
19 | Budget Stabilization Act and payments to the System pursuant to | ||||||
20 | Section 25 of the Budget Stabilization Act shall be further | ||||||
21 | retirement benefits and contractual obligations. The transfers | ||||||
22 | and payments prescribed in Sections 20 and 25 of the Budget | ||||||
23 | Stabilization Act shall not be used by the retirement system | ||||||
24 | when calculation any pension payment until the System has | ||||||
25 | reached a funded level of 100%. This Section and the security | ||||||
26 | it provides to participants and annuitants is intended to be, |
| |||||||
| |||||||
1 | and is, a contractual right that is part of the pension | ||||||
2 | benefits provided to the participants and annuitants. | ||||||
3 | Notwithstanding anything to the contrary in the Court of Claims | ||||||
4 | Act or any other law, a designated retirement system has the | ||||||
5 | exclusive right to and shall bring a mandamus action in the | ||||||
6 | Circuit Court of Champaign County against the State to compel | ||||||
7 | the State to make any installment of the annual required State | ||||||
8 | contribution required by this Section, irrespective of other | ||||||
9 | remedies that may be available to the System. Each member or | ||||||
10 | annuitant of the System has the right to in any judicial | ||||||
11 | district in which the System maintains an office if the System | ||||||
12 | fails to bring an action specified in this Section, | ||||||
13 | irrespective of other remedies that may be available to the | ||||||
14 | member or annuitant. In making these determinations, the | ||||||
15 | required State contribution shall be calculated each year as a | ||||||
16 | level percentage of payroll over the years remaining to and | ||||||
17 | including fiscal year 2045 and shall be determined under the | ||||||
18 | projected unit credit actuarial cost method. | ||||||
19 | (Source: P.A. 83-1440.)
| ||||||
20 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
21 | Sec. 15-157. Employee Contributions.
| ||||||
22 | (a) Each participating employee
shall make contributions | ||||||
23 | towards the retirement
benefits payable under the retirement | ||||||
24 | program applicable to the
employee from each payment
of | ||||||
25 | earnings applicable to employment under this system on and |
| |||||||
| |||||||
1 | after the
date of becoming a participant as follows: Prior to | ||||||
2 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
3 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
4 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
5 | are to be considered as normal contributions for purposes
of | ||||||
6 | this Article.
| ||||||
7 | Each participant who is a police officer or firefighter | ||||||
8 | shall make normal
contributions of 8% of each payment of | ||||||
9 | earnings applicable to employment as a
police officer or | ||||||
10 | firefighter under this system on or after September 1, 1981,
| ||||||
11 | unless he or she files with the board within 60 days after the | ||||||
12 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
13 | the board receives notice that
he or she is employed as a | ||||||
14 | police officer or firefighter, whichever is later,
a written | ||||||
15 | notice waiving the retirement formula provided by Rule 4 of | ||||||
16 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
17 | participant had met the
conditions set forth in Section | ||||||
18 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
19 | 1991 but failed to make the additional normal contributions
| ||||||
20 | required by this paragraph, he or she may elect to pay the | ||||||
21 | additional
contributions plus compound interest at the | ||||||
22 | effective rate. If such payment
is received by the board, the | ||||||
23 | service shall be considered as police officer
service in | ||||||
24 | calculating the retirement annuity under Rule 4 of Section | ||||||
25 | 15-136.
While performing service described in clause (i) or | ||||||
26 | (ii) of Rule 4 of Section
15-136, a participating employee |
| |||||||
| |||||||
1 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
2 | of determining the rate of employee contributions
under this | ||||||
3 | Section.
| ||||||
4 | (b) Starting September 1, 1969, each participating | ||||||
5 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
6 | earnings to finance a portion
of the cost of the annual | ||||||
7 | increases in retirement annuity provided under
Section 15-136, | ||||||
8 | except that with respect to participants in the
self-managed | ||||||
9 | plan this additional contribution shall be used to finance the
| ||||||
10 | benefits obtained under that retirement program.
| ||||||
11 | (c) In addition to the amounts described in subsections (a) | ||||||
12 | and (b) of this
Section, each participating employee shall make | ||||||
13 | contributions of 1% of earnings
applicable under this system on | ||||||
14 | and after August 1, 1959. The contributions
made under this | ||||||
15 | subsection (c) shall be considered as survivor's insurance
| ||||||
16 | contributions for purposes of this Article if the employee is | ||||||
17 | covered under
the traditional benefit package, and such | ||||||
18 | contributions shall be considered
as additional contributions | ||||||
19 | for purposes of this Article if the employee is
participating | ||||||
20 | in the self-managed plan or has elected to participate in the
| ||||||
21 | portable benefit package and has completed the applicable | ||||||
22 | one-year waiting
period. Contributions in excess of $80 during | ||||||
23 | any fiscal year beginning before
August 31, 1969 and in excess | ||||||
24 | of $120 during any fiscal year thereafter until
September 1, | ||||||
25 | 1971 shall be considered as additional contributions for | ||||||
26 | purposes
of this Article.
|
| |||||||
| |||||||
1 | (c-5) In addition to the contributions otherwise required | ||||||
2 | under this Article, each Tier I participant shall also make the | ||||||
3 | following contributions toward the cost of his or her | ||||||
4 | retirement annuity from each payment
of salary received by him | ||||||
5 | or her for service as a member: | ||||||
6 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
7 | 1% of earnings; and | ||||||
8 | (2) beginning on July 1, 2014, 2% of earnings. | ||||||
9 | Except as otherwise specified, these contributions are to | ||||||
10 | be considered as normal contributions for purposes
of this | ||||||
11 | Article. | ||||||
12 | (d) If the board by board rule so permits and subject to | ||||||
13 | such conditions
and limitations as may be specified in its | ||||||
14 | rules, a participant may make
other additional contributions of | ||||||
15 | such percentage of earnings or amounts as
the participant shall | ||||||
16 | elect in a written notice thereof received by the board.
| ||||||
17 | (e) That fraction of a participant's total accumulated | ||||||
18 | normal
contributions, the numerator of which is equal to the | ||||||
19 | number of years of
service in excess of that which is required | ||||||
20 | to qualify for the maximum
retirement annuity, and the | ||||||
21 | denominator of which is equal to the total
service of the | ||||||
22 | participant, shall be considered as accumulated additional
| ||||||
23 | contributions. The determination of the applicable maximum | ||||||
24 | annuity and
the adjustment in contributions required by this | ||||||
25 | provision shall be made
as of the date of the participant's | ||||||
26 | retirement.
|
| |||||||
| |||||||
1 | (f) Notwithstanding the foregoing, a participating | ||||||
2 | employee shall not
be required to make contributions under this | ||||||
3 | Section after the date upon
which continuance of such | ||||||
4 | contributions would otherwise cause his or her
retirement | ||||||
5 | annuity to exceed the maximum retirement annuity as specified | ||||||
6 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
7 | (g) A participating employee may make contributions for the | ||||||
8 | purchase of
service credit under this Article.
| ||||||
9 | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | ||||||
10 | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | ||||||
11 | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| ||||||
12 | (40 ILCS 5/16-106.4 new) | ||||||
13 | Sec. 16-106.4. Tier I member. "Tier I member": A member | ||||||
14 | under this Article who first became a member or participant | ||||||
15 | before January 1, 2011 under any reciprocal retirement system | ||||||
16 | or pension fund established under this Code other than a | ||||||
17 | retirement system or pension fund established under Article 2, | ||||||
18 | 3, 4, 5, 6, or 18 of this Code and who is not a Tier I retiree. | ||||||
19 | (40 ILCS 5/16-106.5 new) | ||||||
20 | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former | ||||||
21 | Tier I member who is receiving a retirement annuity.
| ||||||
22 | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| ||||||
23 | Sec. 16-133. Retirement annuity; amount.
|
| |||||||
| |||||||
1 | (a) The amount of the retirement annuity shall be (i) in | ||||||
2 | the case of a person who first became a teacher under this | ||||||
3 | Article before July 1, 2005, the larger of the
amounts | ||||||
4 | determined under paragraphs (A) and (B) below, or (ii) in the | ||||||
5 | case of a person who first becomes a teacher under this Article | ||||||
6 | on or after July 1, 2005, the amount determined under the | ||||||
7 | applicable provisions of paragraph (B):
| ||||||
8 | (A) An amount consisting of the sum of the following:
| ||||||
9 | (1) An amount that can be provided on an | ||||||
10 | actuarially equivalent basis
by the member's | ||||||
11 | accumulated contributions at the time of retirement; | ||||||
12 | and
| ||||||
13 | (2) The sum of (i) the amount that can be provided | ||||||
14 | on an actuarially
equivalent basis by the member's | ||||||
15 | accumulated contributions representing
service prior | ||||||
16 | to July 1, 1947, and (ii) the amount that can be | ||||||
17 | provided on
an actuarially equivalent basis by the | ||||||
18 | amount obtained by multiplying 1.4
times the member's | ||||||
19 | accumulated contributions covering service subsequent | ||||||
20 | to
June 30, 1947; and
| ||||||
21 | (3) If there is prior service, 2 times the amount | ||||||
22 | that would have been
determined under subparagraph (2) | ||||||
23 | of paragraph (A) above on account of
contributions | ||||||
24 | which would have been made during the period of prior | ||||||
25 | service
creditable to the member had the System been in | ||||||
26 | operation and had the
member made contributions at the |
| |||||||
| |||||||
1 | contribution rate in effect prior to
July 1, 1947.
| ||||||
2 | For the purpose of calculating the sum provided under | ||||||
3 | this paragraph (A), the contribution required under | ||||||
4 | subsection (a-5) of Section 16-152 shall not be considered | ||||||
5 | when determining the amount of the member's accumulated | ||||||
6 | contributions under subparagraph (1) or (2). | ||||||
7 | This paragraph (A) does not apply to a person who first | ||||||
8 | becomes a teacher under this Article on or after July 1, | ||||||
9 | 2005.
| ||||||
10 | (B) An amount consisting of the greater of the | ||||||
11 | following:
| ||||||
12 | (1) For creditable service earned before July 1, | ||||||
13 | 1998 that has not
been augmented under Section | ||||||
14 | 16-129.1: 1.67% of final average salary for
each of the | ||||||
15 | first 10 years of creditable service, 1.90% of final | ||||||
16 | average salary
for each year in excess of 10 but not | ||||||
17 | exceeding 20, 2.10% of final average
salary for each | ||||||
18 | year in excess of 20 but not exceeding 30, and 2.30% of | ||||||
19 | final
average salary for each year in excess of 30; and
| ||||||
20 | For creditable service earned on or after July 1, | ||||||
21 | 1998 by a member who
has at least 24 years of | ||||||
22 | creditable service on July 1, 1998 and who
does not | ||||||
23 | elect to augment service under Section 16-129.1: 2.2% | ||||||
24 | of final
average salary for each year of creditable | ||||||
25 | service earned on or after July 1,
1998 but before the | ||||||
26 | member reaches a total of 30 years of creditable |
| |||||||
| |||||||
1 | service
and 2.3% of final average salary for each year | ||||||
2 | of creditable service earned
on or after July 1, 1998 | ||||||
3 | and after the member reaches a total of 30 years of
| ||||||
4 | creditable service; and
| ||||||
5 | For all other creditable service: 2.2% of final | ||||||
6 | average salary
for each year of creditable service; or
| ||||||
7 | (2) 1.5% of final average salary for each year of
| ||||||
8 | creditable service plus the sum $7.50 for each of the | ||||||
9 | first 20 years of
creditable service.
| ||||||
10 | The amount of the retirement annuity determined under this | ||||||
11 | paragraph (B)
shall be reduced by 1/2 of 1% for each month | ||||||
12 | that the member is less than
age 60 at the time the | ||||||
13 | retirement annuity begins. However, this reduction
shall | ||||||
14 | not apply (i) if the member has at least 35 years of | ||||||
15 | creditable service,
or (ii) if the member retires on | ||||||
16 | account of disability under Section 16-149.2
of this | ||||||
17 | Article with at least 20 years of creditable service, or | ||||||
18 | (iii) if
the member (1) has earned during the period | ||||||
19 | immediately preceding the last
day of service at least one | ||||||
20 | year of contributing creditable service as an
employee of a | ||||||
21 | department as defined in Section 14-103.04, (2) has earned | ||||||
22 | at
least 5 years of contributing creditable service as an | ||||||
23 | employee of a department
as defined in Section 14-103.04, | ||||||
24 | (3) retires on or after January 1, 2001, and
(4) retires | ||||||
25 | having attained an age which, when added to the number of | ||||||
26 | years of
his or her total creditable service, equals at |
| |||||||
| |||||||
1 | least 85. Portions of years
shall be counted as decimal | ||||||
2 | equivalents.
| ||||||
3 | (b) For purposes of this Section, final average salary | ||||||
4 | shall be the
average salary for the highest 4 consecutive years | ||||||
5 | within the last 10 years
of creditable service as determined | ||||||
6 | under rules of the board. The minimum
final average salary | ||||||
7 | shall be considered to be $2,400 per year.
| ||||||
8 | In the determination of final average salary for members | ||||||
9 | other than
elected officials and their appointees when such | ||||||
10 | appointees are allowed by
statute, that part of a member's | ||||||
11 | salary for any year beginning after June
30, 1979 which exceeds | ||||||
12 | the member's annual full-time salary rate with the
same | ||||||
13 | employer for the preceding year by more than 20% shall be | ||||||
14 | excluded.
The exclusion shall not apply in any year in which | ||||||
15 | the member's creditable
earnings are less than 50% of the | ||||||
16 | preceding year's mean salary for downstate
teachers as | ||||||
17 | determined by the survey of school district salaries provided | ||||||
18 | in
Section 2-3.103 of the School Code.
| ||||||
19 | (c) In determining the amount of the retirement annuity | ||||||
20 | under paragraph
(B) of this Section, a fractional year shall be | ||||||
21 | granted proportional credit.
| ||||||
22 | (d) The retirement annuity determined under paragraph (B) | ||||||
23 | of this Section
shall be available only to members who render | ||||||
24 | teaching service after July
1, 1947 for which member | ||||||
25 | contributions are required, and to annuitants who
re-enter | ||||||
26 | under the provisions of Section 16-150.
|
| |||||||
| |||||||
1 | (e) The maximum retirement annuity provided under | ||||||
2 | paragraph (B) of this
Section shall be 75% of final average | ||||||
3 | salary.
| ||||||
4 | (f) A member retiring after the effective date of this | ||||||
5 | amendatory Act
of 1998 shall receive a pension equal to 75% of | ||||||
6 | final average salary if the
member is qualified to receive a | ||||||
7 | retirement annuity equal to at least 74.6%
of final average | ||||||
8 | salary under this Article or as proportional annuities under
| ||||||
9 | Article 20 of this Code.
| ||||||
10 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
11 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| ||||||
12 | Sec. 16-152. Contributions by members.
| ||||||
13 | (a) Each member shall make contributions for membership | ||||||
14 | service to this
System as follows:
| ||||||
15 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
16 | salary towards the
cost of the retirement annuity. Such | ||||||
17 | contributions shall be deemed "normal
contributions".
| ||||||
18 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
19 | of salary toward
the cost of the automatic annual increase | ||||||
20 | in retirement annuity provided
under Section 16-133.1.
| ||||||
21 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
22 | salary towards the
cost of survivor benefits. Such | ||||||
23 | contributions shall not be credited to
the individual | ||||||
24 | account of the member and shall not be subject to refund
| ||||||
25 | except as provided under Section 16-143.2.
|
| |||||||
| |||||||
1 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
2 | salary toward the cost of the early retirement without | ||||||
3 | discount option provided under Section 16-133.2. This | ||||||
4 | contribution shall cease upon termination of the early | ||||||
5 | retirement without discount option as provided in Section | ||||||
6 | 16-176.
| ||||||
7 | (a-5) In addition to the contributions otherwise required | ||||||
8 | under this Article, each Tier I participant shall also make the | ||||||
9 | following contributions toward the cost of his or her | ||||||
10 | retirement annuity from each payment
of salary received by him | ||||||
11 | or her for service as a member: | ||||||
12 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
13 | 1% of salary; and | ||||||
14 | (2) beginning on July 1, 2014, 2% of salary. | ||||||
15 | Except as otherwise specified, these contributions are to | ||||||
16 | be considered as normal contributions for purposes
of this | ||||||
17 | Article. | ||||||
18 | (b) The minimum required contribution for any year of | ||||||
19 | full-time
teaching service shall be $192.
| ||||||
20 | (c) Contributions shall not be required of any annuitant | ||||||
21 | receiving
a retirement annuity who is given employment as | ||||||
22 | permitted under Section 16-118 or 16-150.1.
| ||||||
23 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
24 | retires with
more than 34 years of creditable service, and | ||||||
25 | (iii) does not elect to qualify
for the augmented rate under | ||||||
26 | Section 16-129.1 shall be entitled, at the time
of retirement, |
| |||||||
| |||||||
1 | to receive a partial refund of contributions made under this
| ||||||
2 | Section for service occurring after the later of June 30, 1998 | ||||||
3 | or attainment
of 34 years of creditable service, in an amount | ||||||
4 | equal to 1.00% of the salary
upon which those contributions | ||||||
5 | were based.
| ||||||
6 | (e) A member's contributions toward the cost of early | ||||||
7 | retirement without discount made under item (a)(4) of this | ||||||
8 | Section shall not be refunded if the member has elected early | ||||||
9 | retirement without discount under Section 16-133.2 and has | ||||||
10 | begun to receive a retirement annuity under this Article | ||||||
11 | calculated in accordance with that election. Otherwise, a | ||||||
12 | member's contributions toward the cost of early retirement | ||||||
13 | without discount made under item (a)(4) of this Section shall | ||||||
14 | be refunded according to whichever one of the following | ||||||
15 | circumstances occurs first: | ||||||
16 | (1) The contributions shall be refunded to the member, | ||||||
17 | without interest, within 120 days after the member's | ||||||
18 | retirement annuity commences, if the member does not elect | ||||||
19 | early retirement without discount under Section 16-133.2. | ||||||
20 | (2) The contributions shall be included, without | ||||||
21 | interest, in any refund claimed by the member under Section | ||||||
22 | 16-151. | ||||||
23 | (3) The contributions shall be refunded to the member's | ||||||
24 | designated beneficiary (or if there is no beneficiary, to | ||||||
25 | the member's estate), without interest, if the member dies | ||||||
26 | without having begun to receive a retirement annuity under |
| |||||||
| |||||||
1 | this Article. | ||||||
2 | (4) The contributions shall be refunded to the member, | ||||||
3 | without interest, within 120 days after the early | ||||||
4 | retirement without discount option provided under Section | ||||||
5 | 16-133.2 is terminated under Section 16-176.
| ||||||
6 | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| ||||||
7 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
8 | Sec. 16-158. Contributions by State and other employing | ||||||
9 | units.
| ||||||
10 | (a) The State shall make contributions to the System by | ||||||
11 | means of
appropriations from the Common School Fund and other | ||||||
12 | State funds of amounts
which, together with other employer | ||||||
13 | contributions, employee contributions,
investment income, and | ||||||
14 | other income, will be sufficient to meet the cost of
| ||||||
15 | maintaining and administering the System on a 100% 90% funded | ||||||
16 | basis in accordance
with actuarial recommendations.
| ||||||
17 | The Board shall determine the amount of State contributions | ||||||
18 | required for
each fiscal year on the basis of the actuarial | ||||||
19 | tables and other assumptions
adopted by the Board and the | ||||||
20 | recommendations of the actuary, using the formula
in subsection | ||||||
21 | (b-3).
| ||||||
22 | (a-1) Annually, on or before November 15 until November 15, | ||||||
23 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
24 | required State contribution for the coming fiscal
year. The | ||||||
25 | certification under this subsection (a-1) shall include a copy |
| |||||||
| |||||||
1 | of the actuarial recommendations
upon which it is based and | ||||||
2 | shall specifically identify the System's projected State | ||||||
3 | normal cost for that fiscal year.
| ||||||
4 | On or before May 1, 2004, the Board shall recalculate and | ||||||
5 | recertify to
the Governor the amount of the required State | ||||||
6 | contribution to the System for
State fiscal year 2005, taking | ||||||
7 | into account the amounts appropriated to and
received by the | ||||||
8 | System under subsection (d) of Section 7.2 of the General
| ||||||
9 | Obligation Bond Act.
| ||||||
10 | On or before July 1, 2005, the Board shall recalculate and | ||||||
11 | recertify
to the Governor the amount of the required State
| ||||||
12 | contribution to the System for State fiscal year 2006, taking | ||||||
13 | into account the changes in required State contributions made | ||||||
14 | by this amendatory Act of the 94th General Assembly.
| ||||||
15 | On or before April 1, 2011, the Board shall recalculate and | ||||||
16 | recertify to the Governor the amount of the required State | ||||||
17 | contribution to the System for State fiscal year 2011, applying | ||||||
18 | the changes made by Public Act 96-889 to the System's assets | ||||||
19 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
20 | was approved on that date. | ||||||
21 | (a-5) On or before November 1 of each year, beginning | ||||||
22 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
23 | the Governor, and the General Assembly a proposed certification | ||||||
24 | of the amount of the required State contribution to the System | ||||||
25 | for the next fiscal year, along with all of the actuarial | ||||||
26 | assumptions, calculations, and data upon which that proposed |
| |||||||
| |||||||
1 | certification is based. On or before January 1 of each year, | ||||||
2 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
3 | preliminary report concerning the proposed certification and | ||||||
4 | identifying, if necessary, recommended changes in actuarial | ||||||
5 | assumptions that the Board must consider before finalizing its | ||||||
6 | certification of the required State contributions. On or before | ||||||
7 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
8 | shall certify to the Governor and the General Assembly the | ||||||
9 | amount of the required State contribution for the next fiscal | ||||||
10 | year. The Board's certification must note any deviations from | ||||||
11 | the State Actuary's recommended changes, the reason or reasons | ||||||
12 | for not following the State Actuary's recommended changes, and | ||||||
13 | the fiscal impact of not following the State Actuary's | ||||||
14 | recommended changes on the required State contribution. | ||||||
15 | (b) Through State fiscal year 1995, the State contributions | ||||||
16 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
17 | the School Code.
| ||||||
18 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
19 | of each month,
or as soon thereafter as may be practicable, the | ||||||
20 | Board shall submit vouchers
for payment of State contributions | ||||||
21 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
22 | required annual State contribution certified under
subsection | ||||||
23 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
24 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
25 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
26 | excess of the fiscal year 2004
certified contribution amount |
| |||||||
| |||||||
1 | determined under this Section
after taking into consideration | ||||||
2 | the transfer to the System
under subsection (a) of Section | ||||||
3 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
4 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
5 | funds appropriated to the System for that
fiscal year.
| ||||||
6 | If in any month the amount remaining unexpended from all | ||||||
7 | other appropriations
to the System for the applicable fiscal | ||||||
8 | year (including the appropriations to
the System under Section | ||||||
9 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
10 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
11 | amount
lawfully vouchered under this subsection, the | ||||||
12 | difference shall be paid from the
Common School Fund under the | ||||||
13 | continuing appropriation authority provided in
Section 1.1 of | ||||||
14 | the State Pension Funds Continuing Appropriation Act.
| ||||||
15 | (b-2) Allocations from the Common School Fund apportioned | ||||||
16 | to school
districts not coming under this System shall not be | ||||||
17 | diminished or affected by
the provisions of this Article.
| ||||||
18 | (b-3) For State fiscal years 2015 through 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 100% | ||||||
22 | of the total actuarial liabilities of the System by the end of
| ||||||
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 |
| |||||||
| |||||||
1 | projected unit credit actuarial cost method. | ||||||
2 | For State fiscal years 2012 through 2014 2045 , the minimum | ||||||
3 | contribution
to the System to be made by the State for each | ||||||
4 | fiscal year shall be an amount
determined by the System to be | ||||||
5 | sufficient to bring the total assets of the
System up to 90% of | ||||||
6 | the total actuarial liabilities of the System by the end of
| ||||||
7 | State fiscal year 2045. In making these determinations, the | ||||||
8 | required State
contribution shall be calculated each year as a | ||||||
9 | level percentage of payroll
over the years remaining to and | ||||||
10 | including fiscal year 2045 and shall be
determined under the | ||||||
11 | projected unit credit actuarial cost method.
| ||||||
12 | For State fiscal years 1996 through 2005, the State | ||||||
13 | contribution to the
System, as a percentage of the applicable | ||||||
14 | employee payroll, shall be increased
in equal annual increments | ||||||
15 | so that by State fiscal year 2011, the State is
contributing at | ||||||
16 | the rate required under this Section; except that in the
| ||||||
17 | following specified State fiscal years, the State contribution | ||||||
18 | to the System
shall not be less than the following indicated | ||||||
19 | percentages of the applicable
employee payroll, even if the | ||||||
20 | indicated percentage will produce a State
contribution in | ||||||
21 | excess of the amount otherwise required under this subsection
| ||||||
22 | and subsection (a), and notwithstanding any contrary | ||||||
23 | certification made under
subsection (a-1) before the effective | ||||||
24 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
25 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
26 | 2003; and
13.56% in FY 2004.
|
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State
contribution for State fiscal year 2006 is | ||||||
3 | $534,627,700.
| ||||||
4 | Notwithstanding any other provision of this Article, the | ||||||
5 | total required State
contribution for State fiscal year 2007 is | ||||||
6 | $738,014,500.
| ||||||
7 | For each of State fiscal years 2008 through 2009, the State | ||||||
8 | contribution to
the System, as a percentage of the applicable | ||||||
9 | employee payroll, shall be
increased in equal annual increments | ||||||
10 | from the required State contribution for State fiscal year | ||||||
11 | 2007, so that by State fiscal year 2011, the
State is | ||||||
12 | contributing at the rate otherwise required under this Section.
| ||||||
13 | Notwithstanding any other provision of this Article, the | ||||||
14 | total required State contribution for State fiscal year 2010 is | ||||||
15 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
16 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
17 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
18 | expenses determined by the System's share of total bond | ||||||
19 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
20 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
21 | due to the issuance of discounted bonds, if applicable. | ||||||
22 | Notwithstanding any other provision of this Article, the
| ||||||
23 | total required State contribution for State fiscal year 2011 is
| ||||||
24 | the amount recertified by the System on or before April 1, 2011 | ||||||
25 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
26 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
| |||||||
| |||||||
1 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
2 | pro rata share of bond sale
expenses determined by the System's | ||||||
3 | share of total bond
proceeds, (ii) any amounts received from | ||||||
4 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
5 | reduction in bond proceeds
due to the issuance of discounted | ||||||
6 | bonds, if applicable. This amount shall include, in addition to | ||||||
7 | the amount certified by the System, an amount necessary to meet | ||||||
8 | employer contributions required by the State as an employer | ||||||
9 | under paragraph (e) of this Section, which may also be used by | ||||||
10 | the System for contributions required by paragraph (a) of | ||||||
11 | Section 16-127. | ||||||
12 | Beginning in State fiscal year 2046, the minimum State | ||||||
13 | contribution for
each fiscal year shall be the amount needed to | ||||||
14 | maintain the total assets of
the System at 90% of the total | ||||||
15 | actuarial liabilities of the System.
| ||||||
16 | Amounts received by the System pursuant to Section 25 of | ||||||
17 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
18 | Finance Act in any fiscal year do not reduce and do not | ||||||
19 | constitute payment of any portion of the minimum State | ||||||
20 | contribution required under this Article in that fiscal year. | ||||||
21 | Such amounts shall not reduce, and shall not be included in the | ||||||
22 | calculation of, the required State contributions under this | ||||||
23 | Article in any future year until the System has reached a | ||||||
24 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
25 | to the "required State contribution" or any substantially | ||||||
26 | similar term does not include or apply to any amounts payable |
| |||||||
| |||||||
1 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
2 | Notwithstanding any other provision of this Code or the | ||||||
3 | Budget Stabilization Act, amounts transferred to the System | ||||||
4 | pursuant to the Budget Stabilization Act after the effective | ||||||
5 | date of this amendatory Act of the 98th General Assembly do not | ||||||
6 | reduce and do not constitute payment of any portion of the | ||||||
7 | required State contribution under this Article in that fiscal | ||||||
8 | year. Such amounts shall not reduce, and shall not be included | ||||||
9 | in the calculation of, the required State contributions under | ||||||
10 | this Article in any future year until the System has received | ||||||
11 | payment of contributions pursuant to the Budget Stabilization | ||||||
12 | Act. | ||||||
13 | Notwithstanding any other provision of this Section, the | ||||||
14 | required State
contribution for State fiscal year 2005 and for | ||||||
15 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
16 | fiscal year 2014 , as
calculated under this Section and
| ||||||
17 | certified under subsection (a-1), shall not exceed an amount | ||||||
18 | equal to (i) the
amount of the required State contribution that | ||||||
19 | would have been calculated under
this Section for that fiscal | ||||||
20 | year if the System had not received any payments
under | ||||||
21 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
22 | Act, minus
(ii) the portion of the State's total debt service | ||||||
23 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
24 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
25 | and certified by the Comptroller, that is the same as the | ||||||
26 | System's portion of
the total moneys distributed under |
| |||||||
| |||||||
1 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
2 | Act. In determining this maximum for State fiscal years 2008 | ||||||
3 | through 2010, however, the amount referred to in item (i) shall | ||||||
4 | be increased, as a percentage of the applicable employee | ||||||
5 | payroll, in equal increments calculated from the sum of the | ||||||
6 | required State contribution for State fiscal year 2007 plus the | ||||||
7 | applicable portion of the State's total debt service payments | ||||||
8 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
9 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
10 | Act, so that, by State fiscal year 2011, the
State is | ||||||
11 | contributing at the rate otherwise required under this Section.
| ||||||
12 | (c) Payment of the required State contributions and of all | ||||||
13 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
14 | other benefits granted
under or assumed by this System, and all | ||||||
15 | expenses in connection with the
administration and operation | ||||||
16 | thereof, are obligations of the State.
| ||||||
17 | If members are paid from special trust or federal funds | ||||||
18 | which are
administered by the employing unit, whether school | ||||||
19 | district or other
unit, the employing unit shall pay to the | ||||||
20 | System from such
funds the full accruing retirement costs based | ||||||
21 | upon that
service, as determined by the System. Employer | ||||||
22 | contributions, based on
salary paid to members from federal | ||||||
23 | funds, may be forwarded by the distributing
agency of the State | ||||||
24 | of Illinois to the System prior to allocation, in an
amount | ||||||
25 | determined in accordance with guidelines established by such
| ||||||
26 | agency and the System.
|
| |||||||
| |||||||
1 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
2 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
3 | employer's normal cost
of benefits based upon the teacher's | ||||||
4 | service, in addition to
employee contributions, as determined | ||||||
5 | by the System. Such employer
contributions shall be forwarded | ||||||
6 | monthly in accordance with guidelines
established by the | ||||||
7 | System.
| ||||||
8 | However, with respect to benefits granted under Section | ||||||
9 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
10 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
11 | (rather than 20%) of the member's
highest annual salary rate | ||||||
12 | for each year of creditable service granted, and
the employer | ||||||
13 | shall also pay the required employee contribution on behalf of
| ||||||
14 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
15 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
16 | 16-106 who is serving in that capacity
while on leave of | ||||||
17 | absence from another employer under this Article shall not
be | ||||||
18 | considered an employee of the employer from which the teacher | ||||||
19 | is on leave.
| ||||||
20 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
21 | shall pay to the System an employer contribution computed as | ||||||
22 | follows:
| ||||||
23 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
24 | employer
contribution shall be equal to 0.3% of each | ||||||
25 | teacher's salary.
| ||||||
26 | (2) Beginning July 1, 1999 and thereafter, the employer
|
| |||||||
| |||||||
1 | contribution shall be equal to 0.58% of each teacher's | ||||||
2 | salary.
| ||||||
3 | The school district or other employing unit may pay these | ||||||
4 | employer
contributions out of any source of funding available | ||||||
5 | for that purpose and
shall forward the contributions to the | ||||||
6 | System on the schedule established
for the payment of member | ||||||
7 | contributions.
| ||||||
8 | These employer contributions are intended to offset a | ||||||
9 | portion of the cost
to the System of the increases in | ||||||
10 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
11 | Each employer of teachers is entitled to a credit against | ||||||
12 | the contributions
required under this subsection (e) with | ||||||
13 | respect to salaries paid to teachers
for the period January 1, | ||||||
14 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
15 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
16 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
17 | paid to teachers for that
period.
| ||||||
18 | The additional 1% employee contribution required under | ||||||
19 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
20 | responsibility of the teacher and not the
teacher's employer, | ||||||
21 | unless the employer agrees, through collective bargaining
or | ||||||
22 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
23 | If an employer is required by a contract in effect on May | ||||||
24 | 1, 1998 between the
employer and an employee organization to | ||||||
25 | pay, on behalf of all its full-time
employees
covered by this | ||||||
26 | Article, all mandatory employee contributions required under
|
| |||||||
| |||||||
1 | this Article, then the employer shall be excused from paying | ||||||
2 | the employer
contribution required under this subsection (e) | ||||||
3 | for the balance of the term
of that contract. The employer and | ||||||
4 | the employee organization shall jointly
certify to the System | ||||||
5 | the existence of the contractual requirement, in such
form as | ||||||
6 | the System may prescribe. This exclusion shall cease upon the
| ||||||
7 | termination, extension, or renewal of the contract at any time | ||||||
8 | after May 1,
1998.
| ||||||
9 | (f) If the amount of a teacher's salary for any school year | ||||||
10 | used to determine final average salary exceeds the member's | ||||||
11 | annual full-time salary rate with the same employer for the | ||||||
12 | previous school year by more than 6%, the teacher's employer | ||||||
13 | shall pay to the System, in addition to all other payments | ||||||
14 | required under this Section and in accordance with guidelines | ||||||
15 | established by the System, the present value of the increase in | ||||||
16 | benefits resulting from the portion of the increase in salary | ||||||
17 | that is in excess of 6%. This present value shall be computed | ||||||
18 | by the System on the basis of the actuarial assumptions and | ||||||
19 | tables used in the most recent actuarial valuation of the | ||||||
20 | System that is available at the time of the computation. If a | ||||||
21 | teacher's salary for the 2005-2006 school year is used to | ||||||
22 | determine final average salary under this subsection (f), then | ||||||
23 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
24 | shall apply in calculating whether the increase in his or her | ||||||
25 | salary is in excess of 6%. For the purposes of this Section, | ||||||
26 | change in employment under Section 10-21.12 of the School Code |
| |||||||
| |||||||
1 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
2 | The System may require the employer to provide any pertinent | ||||||
3 | information or documentation.
The changes made to this | ||||||
4 | subsection (f) by this amendatory Act of the 94th General | ||||||
5 | Assembly apply without regard to whether the teacher was in | ||||||
6 | service on or after its effective date.
| ||||||
7 | Whenever it determines that a payment is or may be required | ||||||
8 | under this subsection, the System shall calculate the amount of | ||||||
9 | the payment and bill the employer for that amount. The bill | ||||||
10 | shall specify the calculations used to determine the amount | ||||||
11 | due. If the employer disputes the amount of the bill, it may, | ||||||
12 | within 30 days after receipt of the bill, apply to the System | ||||||
13 | in writing for a recalculation. The application must specify in | ||||||
14 | detail the grounds of the dispute and, if the employer asserts | ||||||
15 | that the calculation is subject to subsection (g) or (h) of | ||||||
16 | this Section, must include an affidavit setting forth and | ||||||
17 | attesting to all facts within the employer's knowledge that are | ||||||
18 | pertinent to the applicability of that subsection. Upon | ||||||
19 | receiving a timely application for recalculation, the System | ||||||
20 | shall review the application and, if appropriate, recalculate | ||||||
21 | the amount due.
| ||||||
22 | The employer contributions required under this subsection | ||||||
23 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
24 | receipt of the bill. If the employer contributions are not paid | ||||||
25 | within 90 days after receipt of the bill, then interest will be | ||||||
26 | charged at a rate equal to the System's annual actuarially |
| |||||||
| |||||||
1 | assumed rate of return on investment compounded annually from | ||||||
2 | the 91st day after receipt of the bill. Payments must be | ||||||
3 | concluded within 3 years after the employer's receipt of the | ||||||
4 | bill.
| ||||||
5 | (g) This subsection (g) applies only to payments made or | ||||||
6 | salary increases given on or after June 1, 2005 but before July | ||||||
7 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
8 | require the System to refund any payments received before
July | ||||||
9 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
10 | When assessing payment for any amount due under subsection | ||||||
11 | (f), the System shall exclude salary increases paid to teachers | ||||||
12 | under contracts or collective bargaining agreements entered | ||||||
13 | into, amended, or renewed before June 1, 2005.
| ||||||
14 | When assessing payment for any amount due under subsection | ||||||
15 | (f), the System shall exclude salary increases paid to a | ||||||
16 | teacher at a time when the teacher is 10 or more years from | ||||||
17 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
18 | When assessing payment for any amount due under subsection | ||||||
19 | (f), the System shall exclude salary increases resulting from | ||||||
20 | overload work, including summer school, when the school | ||||||
21 | district has certified to the System, and the System has | ||||||
22 | approved the certification, that (i) the overload work is for | ||||||
23 | the sole purpose of classroom instruction in excess of the | ||||||
24 | standard number of classes for a full-time teacher in a school | ||||||
25 | district during a school year and (ii) the salary increases are | ||||||
26 | equal to or less than the rate of pay for classroom instruction |
| |||||||
| |||||||
1 | computed on the teacher's current salary and work schedule.
| ||||||
2 | When assessing payment for any amount due under subsection | ||||||
3 | (f), the System shall exclude a salary increase resulting from | ||||||
4 | a promotion (i) for which the employee is required to hold a | ||||||
5 | certificate or supervisory endorsement issued by the State | ||||||
6 | Teacher Certification Board that is a different certification | ||||||
7 | or supervisory endorsement than is required for the teacher's | ||||||
8 | previous position and (ii) to a position that has existed and | ||||||
9 | been filled by a member for no less than one complete academic | ||||||
10 | year and the salary increase from the promotion is an increase | ||||||
11 | that results in an amount no greater than the lesser of the | ||||||
12 | average salary paid for other similar positions in the district | ||||||
13 | requiring the same certification or the amount stipulated in | ||||||
14 | the collective bargaining agreement for a similar position | ||||||
15 | requiring the same certification.
| ||||||
16 | When assessing payment for any amount due under subsection | ||||||
17 | (f), the System shall exclude any payment to the teacher from | ||||||
18 | the State of Illinois or the State Board of Education over | ||||||
19 | which the employer does not have discretion, notwithstanding | ||||||
20 | that the payment is included in the computation of final | ||||||
21 | average salary.
| ||||||
22 | (h) When assessing payment for any amount due under | ||||||
23 | subsection (f), the System shall exclude any salary increase | ||||||
24 | described in subsection (g) of this Section given on or after | ||||||
25 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
26 | collective bargaining agreement entered into, amended, or |
| |||||||
| |||||||
1 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
2 | Notwithstanding any other provision of this Section, any | ||||||
3 | payments made or salary increases given after June 30, 2014 | ||||||
4 | shall be used in assessing payment for any amount due under | ||||||
5 | subsection (f) of this Section.
| ||||||
6 | (i) The System shall prepare a report and file copies of | ||||||
7 | the report with the Governor and the General Assembly by | ||||||
8 | January 1, 2007 that contains all of the following information: | ||||||
9 | (1) The number of recalculations required by the | ||||||
10 | changes made to this Section by Public Act 94-1057 for each | ||||||
11 | employer. | ||||||
12 | (2) The dollar amount by which each employer's | ||||||
13 | contribution to the System was changed due to | ||||||
14 | recalculations required by Public Act 94-1057. | ||||||
15 | (3) The total amount the System received from each | ||||||
16 | employer as a result of the changes made to this Section by | ||||||
17 | Public Act 94-4. | ||||||
18 | (4) The increase in the required State contribution | ||||||
19 | resulting from the changes made to this Section by Public | ||||||
20 | Act 94-1057.
| ||||||
21 | (j) For purposes of determining the required State | ||||||
22 | contribution to the System, the value of the System's assets | ||||||
23 | shall be equal to the actuarial value of the System's assets, | ||||||
24 | which shall be calculated as follows: | ||||||
25 | As of June 30, 2008, the actuarial value of the System's | ||||||
26 | assets shall be equal to the market value of the assets as of |
| |||||||
| |||||||
1 | that date. In determining the actuarial value of the System's | ||||||
2 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
3 | gains or losses from investment return incurred in a fiscal | ||||||
4 | year shall be recognized in equal annual amounts over the | ||||||
5 | 5-year period following that fiscal year. | ||||||
6 | (k) For purposes of determining the required State | ||||||
7 | contribution to the system for a particular year, the actuarial | ||||||
8 | value of assets shall be assumed to earn a rate of return equal | ||||||
9 | to the system's actuarially assumed rate of return. | ||||||
10 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
11 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
12 | 6-18-12; 97-813, eff. 7-13-12.)
| ||||||
13 | (40 ILCS 5/16-158.2 new) | ||||||
14 | Sec. 16-158.2. Obligations of State; funding guarantee. | ||||||
15 | Pursuant to Article XIII, Section 5 of the 1970 Constitution of | ||||||
16 | the State of Illinois, beginning on July 1, 2013, the State | ||||||
17 | shall, as a retirement benefit to each participant and | ||||||
18 | annuitant of the System be contractually obligated to the | ||||||
19 | System (as a fiduciary and trustee of the participants and | ||||||
20 | annuitants) to pay the annual required State contribution, as | ||||||
21 | determined by the Board of the System using generally accepted | ||||||
22 | actuarial principles, as is necessary to bring the total assets | ||||||
23 | of the System up to 100% of the total actuarial liabilities of | ||||||
24 | the System by the end of State fiscal year 2045. As a further | ||||||
25 | retirement benefit and contractual obligation, each fiscal |
| |||||||
| |||||||
1 | year, the State shall pay to each designated retirement system | ||||||
2 | the annual required State contribution certified by the Board | ||||||
3 | for that fiscal year. Payments of the annual required State | ||||||
4 | contribution for each fiscal year shall be made in equal | ||||||
5 | monthly installments. Additionally, beginning in fiscal year | ||||||
6 | 2014, State transfers to the Pension Stabilization Fund | ||||||
7 | pursuant to Section 20 of the Budget Stabilization Act and | ||||||
8 | payments to the System pursuant to Section 25 of the Budget | ||||||
9 | Stabilization Act shall be further retirement benefits and | ||||||
10 | contractual obligations. The transfers and payments prescribed | ||||||
11 | in Sections 20 and 25 of the Budget Stabilization Act shall not | ||||||
12 | be used by the retirement system when calculation any pension | ||||||
13 | payment until the System has reached a funded level of 100%. | ||||||
14 | This Section and the security it provides to participants and | ||||||
15 | annuitants is intended to be, and is, a contractual right that | ||||||
16 | is part of the pension benefits provided to the participants | ||||||
17 | and annuitants. Notwithstanding anything to the contrary in the | ||||||
18 | Court of Claims Act or any other law, a designated retirement | ||||||
19 | system has the exclusive right to and shall bring a mandamus | ||||||
20 | action in the Circuit Court of Sangamon County against the | ||||||
21 | State to compel the State to make any installment of the annual | ||||||
22 | required State contribution required by this Section, | ||||||
23 | irrespective of other remedies that may be available to the | ||||||
24 | System. Each member or annuitant of the System has the right to | ||||||
25 | in any judicial district in which the System maintains an | ||||||
26 | office if the System fails to bring an action specified in this |
| |||||||
| |||||||
1 | Section, irrespective of other remedies that may be available | ||||||
2 | to the member or annuitant. In making these determinations, the | ||||||
3 | required State contribution shall be calculated each year as a | ||||||
4 | level percentage of payroll over the years remaining to and | ||||||
5 | including fiscal year 2045 and shall be determined under the | ||||||
6 | projected unit credit actuarial cost method. | ||||||
7 | Section 99. Effective date. This Act takes effect July 1, | ||||||
8 | 2013.".
|