Full Text of HB1813 94th General Assembly
HB1813ham002 94TH GENERAL ASSEMBLY
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Rep. Gary Hannig
Filed: 4/18/2006
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| AMENDMENT TO HOUSE BILL 1813
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| AMENDMENT NO. ______. Amend House Bill 1813 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Pension Code is amended by | 5 |
| changing Section 15-155, 15-168.1, 16-128, 16-158, and | 6 |
| 16-169.1 as follows:
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| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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| Sec. 15-155. Employer contributions.
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| (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 90% funded basis | 15 |
| 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).
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| (a-1) For State fiscal years 2011 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 90% of |
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| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. 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.
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| For State fiscal years 1996 through 2005, the State | 8 |
| contribution to
the System, as a percentage of the applicable | 9 |
| employee payroll, shall be
increased in equal annual increments | 10 |
| so that by State fiscal year 2011, the
State is contributing at | 11 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 13 |
| total required State
contribution for State fiscal year 2006 is | 14 |
| $166,641,900.
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| Notwithstanding any other provision of this Article, the | 16 |
| total required State
contribution for State fiscal year 2007 is | 17 |
| $252,064,100.
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| For each of State fiscal years 2008 through 2010, the State | 19 |
| contribution to
the System, as a percentage of the applicable | 20 |
| employee payroll, shall be
increased in equal annual increments | 21 |
| from the required State contribution for State fiscal year | 22 |
| 2007, so that by State fiscal year 2011, the
State is | 23 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 25 |
| contribution for
each fiscal year shall be the amount needed to | 26 |
| maintain the total assets of
the System at 90% of the total | 27 |
| actuarial liabilities of the System.
| 28 |
| Notwithstanding any other provision of this Section, the | 29 |
| required State
contribution for State fiscal year 2005 and for | 30 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 31 |
| under this Section and
certified under Section 15-165, shall | 32 |
| not exceed an amount equal to (i) the
amount of the required | 33 |
| State contribution that would have been calculated under
this | 34 |
| Section for that fiscal year if the System had not received any |
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| payments
under subsection (d) of Section 7.2 of the General | 2 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 3 |
| total debt service payments for that fiscal
year on the bonds | 4 |
| issued for the purposes of that Section 7.2, as determined
and | 5 |
| certified by the Comptroller, that is the same as the System's | 6 |
| portion of
the total moneys distributed under subsection (d) of | 7 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 8 |
| this maximum for State fiscal years 2008 through 2010, however, | 9 |
| the amount referred to in item (i) shall be increased, as a | 10 |
| percentage of the applicable employee payroll, in equal | 11 |
| increments calculated from the sum of the required State | 12 |
| contribution for State fiscal year 2007 plus the applicable | 13 |
| portion of the State's total debt service payments for fiscal | 14 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 15 |
| of the General
Obligation Bond Act, so that, by State fiscal | 16 |
| year 2011, the
State is contributing at the rate otherwise | 17 |
| required under this Section.
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| (b) If an employee is paid from trust or federal funds, the | 19 |
| employer
shall pay to the Board contributions from those funds | 20 |
| which are
sufficient to cover the accruing normal costs on | 21 |
| behalf of the employee.
However, universities having employees | 22 |
| who are compensated out of local
auxiliary funds, income funds, | 23 |
| or service enterprise funds are not required
to pay such | 24 |
| contributions on behalf of those employees. The local auxiliary
| 25 |
| funds, income funds, and service enterprise funds of | 26 |
| universities shall not be
considered trust funds for the | 27 |
| purpose of this Article, but funds of alumni
associations, | 28 |
| foundations, and athletic associations which are affiliated | 29 |
| with
the universities included as employers under this Article | 30 |
| and other employers
which do not receive State appropriations | 31 |
| are considered to be trust funds for
the purpose of this | 32 |
| Article.
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| (b-1) The City of Urbana and the City of Champaign shall | 34 |
| each make
employer contributions to this System for their |
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| respective firefighter
employees who participate in this | 2 |
| System pursuant to subsection (h) of Section
15-107. The rate | 3 |
| of contributions to be made by those municipalities shall
be | 4 |
| determined annually by the Board on the basis of the actuarial | 5 |
| assumptions
adopted by the Board and the recommendations of the | 6 |
| actuary, and shall be
expressed as a percentage of salary for | 7 |
| each such employee. The Board shall
certify the rate to the | 8 |
| affected municipalities as soon as may be practical.
The | 9 |
| employer contributions required under this subsection shall be | 10 |
| remitted by
the municipality to the System at the same time and | 11 |
| in the same manner as
employee contributions.
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| (c) Through State fiscal year 1995: The total employer | 13 |
| contribution shall
be apportioned among the various funds of | 14 |
| the State and other employers,
whether trust, federal, or other | 15 |
| funds, in accordance with actuarial procedures
approved by the | 16 |
| Board. State of Illinois contributions for employers receiving
| 17 |
| State appropriations for personal services shall be payable | 18 |
| from appropriations
made to the employers or to the System. The | 19 |
| contributions for Class I
community colleges covering earnings | 20 |
| other than those paid from trust and
federal funds, shall be | 21 |
| payable solely from appropriations to the Illinois
Community | 22 |
| College Board or the System for employer contributions.
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| (d) Beginning in State fiscal year 1996, the required State | 24 |
| contributions
to the System shall be appropriated directly to | 25 |
| the System and shall be payable
through vouchers issued in | 26 |
| accordance with subsection (c) of Section 15-165, except as | 27 |
| provided in subsection (g).
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| (e) The State Comptroller shall draw warrants payable to | 29 |
| the System upon
proper certification by the System or by the | 30 |
| employer in accordance with the
appropriation laws and this | 31 |
| Code.
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| (f) Normal costs under this Section means liability for
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| pensions and other benefits which accrues to the System because | 34 |
| of the
credits earned for service rendered by the participants |
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| 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.
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| (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 | 27 |
| may, within 30 days after receipt of the bill, apply to the | 28 |
| System in writing for a recalculation. The application must | 29 |
| specify in detail the grounds of the dispute and, if the | 30 |
| employer asserts that the calculation is subject to subsection | 31 |
| (h) or (i) of this Section, must include an affidavit setting | 32 |
| forth and attesting to all facts within the employer's | 33 |
| knowledge that are pertinent to the applicability of subsection | 34 |
| (h) or (i). Upon receiving a timely application for |
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| recalculation, the System shall review the application and, if | 2 |
| appropriate, recalculate the amount due.
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| The employer contributions required under this subsection | 4 |
| (g) shall be paid in the form of a lump sum within 30 days after | 5 |
| receipt of the bill or, if the System upon timely application | 6 |
| determines that recalculation of the bill is appropriate, | 7 |
| within 30 days after receipt of the recalculated bill, but in | 8 |
| either case the required amount shall be due no sooner than the | 9 |
| date upon which
after the participant begins receiving benefits | 10 |
| under this Article.
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| (h) This subsection (h) applies only to payments made or | 12 |
| salary increases given after June 30, 2006 but before July 1, | 13 |
| 2009. | 14 |
| When assessing payment for any amount due under subsection | 15 |
| (g), the System shall exclude
The provisions of this subsection | 16 |
| (g) do not apply to earnings increases paid to participants | 17 |
| under contracts or collective bargaining agreements entered | 18 |
| into, amended, or renewed before June 1, 2005
the effective | 19 |
| date of this amendatory Act of the 94th General Assembly .
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| When assessing payment for any amount due under subsection | 21 |
| (g), the System shall exclude earnings increases resulting from | 22 |
| overload work, including a contract for summer teaching, or | 23 |
| overtime when the employer has certified to the System, and the | 24 |
| System has approved the certification, that: (i) in the case of | 25 |
| overloads (A) the overload work is for the sole purpose of | 26 |
| academic instruction occurring during the academic year that | 27 |
| the overload is paid and (B) the earnings increases are equal | 28 |
| to or less than the rate of pay for academic instruction | 29 |
| computed using the participant's current salary rate and work | 30 |
| schedule; and (ii) in the case of overtime, the overtime was | 31 |
| necessary for the educational mission. | 32 |
| When assessing payment for any amount due under subsection | 33 |
| (g), the System shall exclude any earnings increase resulting | 34 |
| from (i) a promotion for which the employee moves from one |
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| classification to a higher classification under the State | 2 |
| Universities Civil Service System or (ii) a promotion in | 3 |
| academic rank for a tenured or tenure-track faculty position. | 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 |
| When assessing payment for any amount due under subsection | 11 |
| (g), the System shall exclude any earnings for which the | 12 |
| employer has paid the accruing normal costs under subsection | 13 |
| (b) of this Section. | 14 |
| (i) When assessing payment for any amount due under | 15 |
| subsection (g), the System shall exclude any salary increase | 16 |
| described in subsection (h) of this Section given on or after | 17 |
| July 1, 2009 but before July 1, 2012 under a contract or | 18 |
| collective bargaining agreement entered into, amended, or | 19 |
| renewed on or after June 30, 2006 but before July 1, 2009. | 20 |
| Notwithstanding any other provision of this Section, any | 21 |
| payments made or salary increases given after June 30, 2012 | 22 |
| shall be used in assessing payment for any amount due under | 23 |
| subsection (g) of this Section.
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| (j) The System shall prepare a report and file copies of | 25 |
| the report with the Governor and the General Assembly by | 26 |
| January 1, 2007 that contains all of the following information: | 27 |
| (1) The number of recalculations required by the | 28 |
| changes made to this Section by this amendatory Act of the | 29 |
| 94th General Assembly for each employer. | 30 |
| (2) The dollar amount by which each employer's | 31 |
| contribution to the System was changed due to | 32 |
| recalculations required by this amendatory Act of the 94th | 33 |
| General Assembly. | 34 |
| (3) The total amount the System received from each |
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| employer as a result of the changes made to this Section by | 2 |
| Public Act 94-4. | 3 |
| (4) The increase in the required State contribution | 4 |
| resulting from the changes made to this Section by this | 5 |
| amendatory Act of the 94th General Assembly.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
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| (40 ILCS 5/15-168.1)
| 8 |
| Sec. 15-168.1. Testimony and the production of records. The | 9 |
| secretary of
the Board shall have
the power to issue subpoenas | 10 |
| to compel the attendance of witnesses and the
production of | 11 |
| documents and records, including law enforcement records
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| maintained by law enforcement agencies, in conjunction with the | 13 |
| determination of employer payments required under subsection | 14 |
| (g) of Section 15-155, a disability
claim, an administrative | 15 |
| review proceeding
proceedings , or a felony forfeiture | 16 |
| investigation.
The fees of witnesses for attendance and travel | 17 |
| shall be the same as the fees
of witnesses before the circuit | 18 |
| courts of this State and shall be paid by the
party seeking the | 19 |
| subpoena. The Board may apply to any circuit court in the
State | 20 |
| for an order requiring compliance with a subpoena issued under | 21 |
| this
Section. Subpoenas issued under this Section shall be | 22 |
| subject to applicable
provisions of the Code of Civil | 23 |
| Procedure.
| 24 |
| (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
| 25 |
| (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
| 26 |
| Sec. 16-128. Creditable service - required contributions.
| 27 |
| (a) In order to receive the creditable service specified | 28 |
| under
subsection (b) of Section 16-127, a member is required to | 29 |
| make the
following contributions: (i) an amount equal to the | 30 |
| contributions
which would have been required had such service | 31 |
| been rendered as a member
under this System; (ii) for military | 32 |
| service not immediately following
employment and for service |
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| established under subdivision (b)(10) of
Section 16-127, an | 2 |
| amount determined by the Board to be equal to the
employer's | 3 |
| normal cost of the benefits accrued for such service; and (iii)
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| interest from the date the contributions would have been due | 5 |
| (or, in the case
of a person establishing credit for military | 6 |
| service under subdivision (b)(3)
of Section 16-127, the date of | 7 |
| first membership in the System, if that date
is later) to the | 8 |
| date of payment, at the following rate of interest,
compounded | 9 |
| annually: for periods prior to July 1, 1965, regular interest; | 10 |
| from
July 1, 1965 to June 30, 1977, 4% per year; on and after | 11 |
| July 1, 1977, regular
interest.
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| (b) In order to receive creditable service under paragraph | 13 |
| (2) of
subsection (b) of Section 16-127 for those who were not | 14 |
| members on June 30,
1963, the minimum required contribution | 15 |
| shall be $420 per year of service
together with interest at 4% | 16 |
| per year compounded annually from July 1,
preceding the date of | 17 |
| membership until June 30, 1977 and at regular
interest | 18 |
| compounded annually thereafter to the date of payment.
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| (c) In determining the contribution required in order to | 20 |
| receive creditable
service under paragraph (3) of subsection | 21 |
| (b) of Section 16-127, the salary
rate for the remainder of the | 22 |
| school term in which a member enters military
service shall be | 23 |
| assumed to be equal to the member's salary rate at the
time of | 24 |
| entering military service. However, for military service not
| 25 |
| immediately following employment, the salary rate on the last | 26 |
| date as a
participating teacher prior to such military service, | 27 |
| or on the first date
as a participating teacher after such | 28 |
| military service, whichever is
greater, shall be assumed to be | 29 |
| equal to the member's salary rate at the
time of entering | 30 |
| military service. For each school term thereafter, the
member's | 31 |
| salary rate shall be assumed to be 5% higher than the salary | 32 |
| rate
in the previous school term.
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| (d) In determining the contribution required in order to | 34 |
| receive creditable
service under paragraph (5) of subsection |
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| (b) of Section 16-127, a member's
salary rate during the period | 2 |
| for which credit is being established shall be
assumed to be | 3 |
| equal to the member's last salary
rate immediately preceding | 4 |
| that period.
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| (d-5) For each year of service credit to be established | 6 |
| under subsection
(b-1) of Section 16-127, a member is required | 7 |
| to contribute to the System (i)
16.5% of the annual salary rate | 8 |
| during the first year of full-time employment
as a teacher | 9 |
| under this Article following the private school service, plus
| 10 |
| (ii) interest thereon from the date of first full-time | 11 |
| employment as a teacher
under this Article following the | 12 |
| private school service to the date of payment,
compounded | 13 |
| annually, at the rate of 8.5% per year for periods before the
| 14 |
| effective date of this amendatory Act of the 92nd General | 15 |
| Assembly, and for
subsequent periods at a rate equal to the | 16 |
| System's actuarially assumed rate of
return on investments.
| 17 |
| (d-10) For service credit established under paragraph (6) | 18 |
| of subsection (b) of Section 16-127 for days granted by an | 19 |
| employer in excess of the member's normal annual sick leave | 20 |
| allotment, the employer is required to pay the normal cost of | 21 |
| benefits based upon such service credit. This subsection (d-10) | 22 |
| does not apply to sick leave granted to teachers under | 23 |
| contracts or collective bargaining agreements entered into, | 24 |
| amended, or renewed before June 1, 2005 ( the effective date of | 25 |
| Public Act 94-4)
this amendatory Act of the 94th General | 26 |
| Assembly .
The employer contributions required under this | 27 |
| subsection (d-10) shall be paid in the form of a lump sum | 28 |
| within 30 days after receipt of the bill after the teacher | 29 |
| begins receiving benefits under this Article.
| 30 |
| (e) Except for contributions under subsection (d-10), the
| 31 |
| The contributions required under this Section may be made from | 32 |
| the
date the statement for such creditable service is issued | 33 |
| until retirement
date. All such required contributions must be | 34 |
| made before any retirement
annuity is granted.
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| (Source: P.A. 94-4, eff. 6-1-05.)
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| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 3 |
| Sec. 16-158. Contributions by State and other employing | 4 |
| units.
| 5 |
| (a) The State shall make contributions to the System by | 6 |
| means of
appropriations from the Common School Fund and other | 7 |
| State funds of amounts
which, together with other employer | 8 |
| contributions, employee contributions,
investment income, and | 9 |
| other income, will be sufficient to meet the cost of
| 10 |
| maintaining and administering the System on a 90% funded basis | 11 |
| in accordance
with actuarial recommendations.
| 12 |
| The Board shall determine the amount of State contributions | 13 |
| required for
each fiscal year on the basis of the actuarial | 14 |
| tables and other assumptions
adopted by the Board and the | 15 |
| recommendations of the actuary, using the formula
in subsection | 16 |
| (b-3).
| 17 |
| (a-1) Annually, on or before November 15, the Board shall | 18 |
| certify to the
Governor the amount of the required State | 19 |
| contribution for the coming fiscal
year. The certification | 20 |
| shall include a copy of the actuarial recommendations
upon | 21 |
| which it is based.
| 22 |
| On or before May 1, 2004, the Board shall recalculate and | 23 |
| recertify to
the Governor the amount of the required State | 24 |
| contribution to the System for
State fiscal year 2005, taking | 25 |
| into account the amounts appropriated to and
received by the | 26 |
| System under subsection (d) of Section 7.2 of the General
| 27 |
| Obligation Bond Act.
| 28 |
| On or before July 1, 2005, the Board shall recalculate and | 29 |
| recertify
to the Governor the amount of the required State
| 30 |
| contribution to the System for State fiscal year 2006, taking | 31 |
| into account the changes in required State contributions made | 32 |
| by this amendatory Act of the 94th General Assembly.
| 33 |
| (b) Through State fiscal year 1995, the State contributions |
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| shall be
paid to the System in accordance with Section 18-7 of | 2 |
| the School Code.
| 3 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 4 |
| of each month,
or as soon thereafter as may be practicable, the | 5 |
| Board shall submit vouchers
for payment of State contributions | 6 |
| to the System, in a total monthly amount of
one-twelfth of the | 7 |
| required annual State contribution certified under
subsection | 8 |
| (a-1).
From the
effective date of this amendatory Act of the | 9 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 10 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 11 |
| excess of the fiscal year 2004
certified contribution amount | 12 |
| determined under this Section
after taking into consideration | 13 |
| the transfer to the System
under subsection (a) of Section | 14 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 15 |
| the State Comptroller and
Treasurer by warrants drawn on the | 16 |
| funds appropriated to the System for that
fiscal year.
| 17 |
| If in any month the amount remaining unexpended from all | 18 |
| other appropriations
to the System for the applicable fiscal | 19 |
| year (including the appropriations to
the System under Section | 20 |
| 8.12 of the State Finance Act and Section 1 of the
State | 21 |
| Pension Funds Continuing Appropriation Act) is less than the | 22 |
| amount
lawfully vouchered under this subsection, the | 23 |
| difference shall be paid from the
Common School Fund under the | 24 |
| continuing appropriation authority provided in
Section 1.1 of | 25 |
| the State Pension Funds Continuing Appropriation Act.
| 26 |
| (b-2) Allocations from the Common School Fund apportioned | 27 |
| to school
districts not coming under this System shall not be | 28 |
| diminished or affected by
the provisions of this Article.
| 29 |
| (b-3) For State fiscal years 2011 through 2045, the minimum | 30 |
| contribution
to the System to be made by the State for each | 31 |
| fiscal year shall be an amount
determined by the System to be | 32 |
| sufficient to bring the total assets of the
System up to 90% of | 33 |
| the total actuarial liabilities of the System by the end of
| 34 |
| State fiscal year 2045. In making these determinations, the |
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| required State
contribution shall be calculated each year as a | 2 |
| level percentage of payroll
over the years remaining to and | 3 |
| including fiscal year 2045 and shall be
determined under the | 4 |
| projected unit credit actuarial cost method.
| 5 |
| For State fiscal years 1996 through 2005, the State | 6 |
| contribution to the
System, as a percentage of the applicable | 7 |
| employee payroll, shall be increased
in equal annual increments | 8 |
| so that by State fiscal year 2011, the State is
contributing at | 9 |
| the rate required under this Section; except that in the
| 10 |
| following specified State fiscal years, the State contribution | 11 |
| to the System
shall not be less than the following indicated | 12 |
| percentages of the applicable
employee payroll, even if the | 13 |
| indicated percentage will produce a State
contribution in | 14 |
| excess of the amount otherwise required under this subsection
| 15 |
| and subsection (a), and notwithstanding any contrary | 16 |
| certification made under
subsection (a-1) before the effective | 17 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 18 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 19 |
| 2003; and
13.56% in FY 2004.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2006 is | 22 |
| $534,627,700.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State
contribution for State fiscal year 2007 is | 25 |
| $738,014,500.
| 26 |
| For each of State fiscal years 2008 through 2010, the State | 27 |
| contribution to
the System, as a percentage of the applicable | 28 |
| employee payroll, shall be
increased in equal annual increments | 29 |
| from the required State contribution for State fiscal year | 30 |
| 2007, so that by State fiscal year 2011, the
State is | 31 |
| contributing at the rate otherwise required under this Section.
| 32 |
| Beginning in State fiscal year 2046, the minimum State | 33 |
| contribution for
each fiscal year shall be the amount needed to | 34 |
| maintain the total assets of
the System at 90% of the total |
|
|
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| actuarial liabilities of the System.
| 2 |
| Notwithstanding any other provision of this Section, the | 3 |
| required State
contribution for State fiscal year 2005 and for | 4 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 5 |
| under this Section and
certified under subsection (a-1), shall | 6 |
| not exceed an amount equal to (i) the
amount of the required | 7 |
| State contribution that would have been calculated under
this | 8 |
| Section for that fiscal year if the System had not received any | 9 |
| payments
under subsection (d) of Section 7.2 of the General | 10 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 11 |
| total debt service payments for that fiscal
year on the bonds | 12 |
| issued for the purposes of that Section 7.2, as determined
and | 13 |
| certified by the Comptroller, that is the same as the System's | 14 |
| portion of
the total moneys distributed under subsection (d) of | 15 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 16 |
| this maximum for State fiscal years 2008 through 2010, however, | 17 |
| the 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 for the purposes of Section 7.2 | 23 |
| of the General
Obligation Bond Act, so that, by State fiscal | 24 |
| year 2011, the
State is contributing at the rate otherwise | 25 |
| required under this Section.
| 26 |
| (c) Payment of the required State contributions and of all | 27 |
| pensions,
retirement annuities, death benefits, refunds, and | 28 |
| other benefits granted
under or assumed by this System, and all | 29 |
| expenses in connection with the
administration and operation | 30 |
| thereof, are obligations of the State.
| 31 |
| If members are paid from special trust or federal funds | 32 |
| which are
administered by the employing unit, whether school | 33 |
| district or other
unit, the employing unit shall pay to the | 34 |
| System from such
funds the full accruing retirement costs based |
|
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| upon that
service, as determined by the System. Employer | 2 |
| contributions, based on
salary paid to members from federal | 3 |
| funds, may be forwarded by the distributing
agency of the State | 4 |
| of Illinois to the System prior to allocation, in an
amount | 5 |
| determined in accordance with guidelines established by such
| 6 |
| agency and the System.
| 7 |
| (d) Effective July 1, 1986, any employer of a teacher as | 8 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 9 |
| employer's normal cost
of benefits based upon the teacher's | 10 |
| service, in addition to
employee contributions, as determined | 11 |
| by the System. Such employer
contributions shall be forwarded | 12 |
| monthly in accordance with guidelines
established by the | 13 |
| System.
| 14 |
| However, with respect to benefits granted under Section | 15 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 16 |
| of Section 16-106, the
employer's contribution shall be 12% | 17 |
| (rather than 20%) of the member's
highest annual salary rate | 18 |
| for each year of creditable service granted, and
the employer | 19 |
| shall also pay the required employee contribution on behalf of
| 20 |
| the teacher. For the purposes of Sections 16-133.4 and | 21 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 22 |
| 16-106 who is serving in that capacity
while on leave of | 23 |
| absence from another employer under this Article shall not
be | 24 |
| considered an employee of the employer from which the teacher | 25 |
| is on leave.
| 26 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 27 |
| shall pay to the System an employer contribution computed as | 28 |
| follows:
| 29 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 30 |
| employer
contribution shall be equal to 0.3% of each | 31 |
| teacher's salary.
| 32 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 33 |
| contribution shall be equal to 0.58% of each teacher's | 34 |
| salary.
|
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| The school district or other employing unit may pay these | 2 |
| employer
contributions out of any source of funding available | 3 |
| for that purpose and
shall forward the contributions to the | 4 |
| System on the schedule established
for the payment of member | 5 |
| contributions.
| 6 |
| These employer contributions are intended to offset a | 7 |
| portion of the cost
to the System of the increases in | 8 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 9 |
| Each employer of teachers is entitled to a credit against | 10 |
| the contributions
required under this subsection (e) with | 11 |
| respect to salaries paid to teachers
for the period January 1, | 12 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 13 |
| employer under subsection (a-5) of Section 6.6 of the State | 14 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 15 |
| paid to teachers for that
period.
| 16 |
| The additional 1% employee contribution required under | 17 |
| Section 16-152 by
this amendatory Act of 1998 is the | 18 |
| responsibility of the teacher and not the
teacher's employer, | 19 |
| unless the employer agrees, through collective bargaining
or | 20 |
| otherwise, to make the contribution on behalf of the teacher.
| 21 |
| If an employer is required by a contract in effect on May | 22 |
| 1, 1998 between the
employer and an employee organization to | 23 |
| pay, on behalf of all its full-time
employees
covered by this | 24 |
| Article, all mandatory employee contributions required under
| 25 |
| this Article, then the employer shall be excused from paying | 26 |
| the employer
contribution required under this subsection (e) | 27 |
| for the balance of the term
of that contract. The employer and | 28 |
| the employee organization shall jointly
certify to the System | 29 |
| the existence of the contractual requirement, in such
form as | 30 |
| the System may prescribe. This exclusion shall cease upon the
| 31 |
| termination, extension, or renewal of the contract at any time | 32 |
| after May 1,
1998.
| 33 |
| (f) If the amount of a teacher's salary for any school year | 34 |
| used to determine final average salary exceeds the amount of |
|
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| his or her salary with the same employer for the previous | 2 |
| school year by more than 6%, the teacher's employer shall pay | 3 |
| to the System, in addition to all other payments required under | 4 |
| this Section and in accordance with guidelines established by | 5 |
| the System, the present value of the increase in benefits | 6 |
| resulting from the portion of the increase in salary that is in | 7 |
| excess of 6%. This present value shall be computed by the | 8 |
| System on the basis of the actuarial assumptions and tables | 9 |
| used in the most recent actuarial valuation of the System that | 10 |
| is available at the time of the computation. For the purposes | 11 |
| of this Section, change in employment under Section 10-21.12 of | 12 |
| the School Code shall constitute a change in employer. The | 13 |
| System may require the employer to provide any pertinent | 14 |
| information or documentation.
| 15 |
| Whenever it determines that a payment is or may be required | 16 |
| under this subsection, the System shall calculate the amount of | 17 |
| the payment and bill the employer for that amount. The bill | 18 |
| shall specify the calculations used to determine the amount | 19 |
| due. If the employer disputes the amount of the bill, it may, | 20 |
| within 30 days after receipt of the bill, apply to the System | 21 |
| in writing for a recalculation. The application must specify in | 22 |
| detail the grounds of the dispute and, if the employer asserts | 23 |
| that the calculation is subject to subsection (g) or (h) of | 24 |
| this Section, must include an affidavit setting forth and | 25 |
| attesting to all facts within the employer's knowledge that are | 26 |
| pertinent to the applicability of that subsection. Upon | 27 |
| receiving a timely application for recalculation, the System | 28 |
| shall review the application and, if appropriate, recalculate | 29 |
| the amount due.
| 30 |
| The employer contributions required under this subsection | 31 |
| (f) shall be paid in the form of a lump sum within 30 days after | 32 |
| receipt of the bill or, if the System upon timely application | 33 |
| determines that recalculation of the bill is appropriate, | 34 |
| within 30 days after receipt of the recalculated bill, but in |
|
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| either case the required payment shall be due no sooner than | 2 |
| the date upon which
after the teacher begins receiving benefits | 3 |
| under this Article.
| 4 |
| (g) This subsection (g) applies only to payments made or | 5 |
| salary increases given after June 30, 2006 but before July 1, | 6 |
| 2009. | 7 |
| When assessing payment for any amount due under subsection | 8 |
| (f), the System shall exclude
The provisions of this subsection | 9 |
| (f) do not apply to salary increases paid to teachers under | 10 |
| contracts or collective bargaining agreements entered into, | 11 |
| amended, or renewed before June 1, 2005
the effective date of | 12 |
| this amendatory Act of the 94th General Assembly .
| 13 |
| When assessing payment for any amount due under subsection | 14 |
| (f), the System shall exclude salary increases resulting from | 15 |
| overload work, including summer school, when the school | 16 |
| district has certified to the System, and the System has | 17 |
| approved the certification, that (i) the overload work is for | 18 |
| the sole purpose of classroom instruction and (ii) the salary | 19 |
| increases are equal to or less than the rate of pay for | 20 |
| classroom instruction computed on the teacher's current salary | 21 |
| and work schedule.
| 22 |
| When assessing payment for any amount due under subsection | 23 |
| (f), the System shall exclude a salary increase resulting from | 24 |
| a promotion (i) for which the employee is required to hold a | 25 |
| certificate or supervisory endorsement issued by the State | 26 |
| Teacher Certification Board that is a different certification | 27 |
| or supervisory endorsement than is required for the teacher's | 28 |
| previous position and (ii) to a position that has existed and | 29 |
| been filled by a member for no less than one complete academic | 30 |
| year and the salary increase from the promotion is an increase | 31 |
| that results in an amount no greater than the lesser of the | 32 |
| average salary paid for other similar positions in the district | 33 |
| requiring the same certification or the amount stipulated in | 34 |
| the collective bargaining agreement for a similar position |
|
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| requiring the same certification.
| 2 |
| When assessing payment for any amount due under subsection | 3 |
| (f), the System shall exclude any payment to the teacher from | 4 |
| the State of Illinois or the State Board of Education over | 5 |
| which the employer does not have discretion, notwithstanding | 6 |
| that the payment is included in the computation of final | 7 |
| average salary.
| 8 |
| (h) When assessing payment for any amount due under | 9 |
| subsection (f), the System shall exclude any salary increase | 10 |
| described in subsection (g) of this Section given on or after | 11 |
| July 1, 2009 but before July 1, 2012 under a contract or | 12 |
| collective bargaining agreement entered into, amended, or | 13 |
| renewed on or after June 30, 2006 but before July 1, 2009. | 14 |
| Notwithstanding any other provision of this Section, any | 15 |
| payments made or salary increases given after June 30, 2012 | 16 |
| shall be used in assessing payment for any amount due under | 17 |
| subsection (f) of this Section.
| 18 |
| (i) The System shall prepare a report and file copies of | 19 |
| the report with the Governor and the General Assembly by | 20 |
| January 1, 2007 that contains all of the following information: | 21 |
| (1) The number of recalculations required by the | 22 |
| changes made to this Section by this amendatory Act of the | 23 |
| 94th General Assembly for each employer. | 24 |
| (2) The dollar amount by which each employer's | 25 |
| contribution to the System was changed due to | 26 |
| recalculations required by this amendatory Act of the 94th | 27 |
| General Assembly. | 28 |
| (3) The total amount the System received from each | 29 |
| employer as a result of the changes made to this Section by | 30 |
| Public Act 94-4. | 31 |
| (4) The increase in the required State contribution | 32 |
| resulting from the changes made to this Section by this | 33 |
| amendatory Act of the 94th General Assembly.
| 34 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, |
|
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| eff. 6-1-05.)
| 2 |
| (40 ILCS 5/16-169.1)
| 3 |
| Sec. 16-169.1. Testimony and the production of records. The | 4 |
| secretary of
the Board shall have the power to issue subpoenas | 5 |
| to compel the attendance of
witnesses and the production of | 6 |
| documents and records, including law
enforcement records | 7 |
| maintained by law enforcement agencies, in conjunction with
the | 8 |
| determination of employer payments required under subsection | 9 |
| (f) of Section 16-158, a disability claim, an administrative | 10 |
| review proceeding, or a felony forfeiture
investigation. The
| 11 |
| fees of witnesses for attendance and travel shall be the same | 12 |
| as the fees of
witnesses before the circuit courts of this | 13 |
| State and shall be paid by the
party seeking the subpoena. The | 14 |
| Board may apply to any circuit court in the
State for an order | 15 |
| requiring compliance with a subpoena issued under this
Section. | 16 |
| Subpoenas issued under this Section shall be subject to | 17 |
| applicable
provisions of the Code of Civil Procedure.
| 18 |
| (Source: P.A. 90-448, eff. 8-16-97.)
| 19 |
| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.".
|
|