Full Text of HB1815 94th General Assembly
HB1815ham002 94TH GENERAL ASSEMBLY
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Rep. James H. Meyer
Filed: 4/19/2006
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| AMENDMENT TO HOUSE BILL 1815
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| AMENDMENT NO. ______. Amend House Bill 1815, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The State Finance Act is amended by adding | 6 |
| Section 5.663 and changing Section 8h as follows: | 7 |
| (30 ILCS 105/5.663 new)
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| Sec. 5.663. The Pension Stabilization Fund. | 9 |
| (30 ILCS 105/8h)
| 10 |
| Sec. 8h. Transfers to General Revenue Fund. | 11 |
| (a) Except as provided in subsection (b), (c), (d), or (e), | 12 |
| notwithstanding any other
State law to the contrary, the | 13 |
| Governor
may, through June 30, 2007, from time to time direct | 14 |
| the State Treasurer and Comptroller to transfer
a specified sum | 15 |
| from any fund held by the State Treasurer to the General
| 16 |
| Revenue Fund in order to help defray the State's operating | 17 |
| costs for the
fiscal year. The total transfer under this | 18 |
| Section from any fund in any
fiscal year shall not exceed the | 19 |
| lesser of (i) 8% of the revenues to be deposited
into the fund | 20 |
| during that fiscal year or (ii) an amount that leaves a | 21 |
| remaining fund balance of 25% of the July 1 fund balance of | 22 |
| that fiscal year. In fiscal year 2005 only, prior to | 23 |
| calculating the July 1, 2004 final balances, the Governor may |
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| calculate and direct the State Treasurer with the Comptroller | 2 |
| to transfer additional amounts determined by applying the | 3 |
| formula authorized in Public Act 93-839 to the funds balances | 4 |
| on July 1, 2003.
No transfer may be made from a fund under this | 5 |
| Section that would have the
effect of reducing the available | 6 |
| balance in the fund to an amount less than
the amount remaining | 7 |
| unexpended and unreserved from the total appropriation
from | 8 |
| that fund estimated to be expended for that fiscal year. This | 9 |
| Section does not apply to any
funds that are restricted by | 10 |
| federal law to a specific use, to any funds in
the Motor Fuel | 11 |
| Tax Fund, the Intercity Passenger Rail Fund, the Hospital | 12 |
| Provider Fund, the Medicaid Provider Relief Fund, the Teacher | 13 |
| Health Insurance Security Fund, the Reviewing Court | 14 |
| Alternative Dispute Resolution Fund, or the Voters' Guide Fund, | 15 |
| the Foreign Language Interpreter Fund, the Lawyers' Assistance | 16 |
| Program Fund, the Supreme Court Federal Projects Fund, the | 17 |
| Supreme Court Special State Projects Fund, or the Low-Level | 18 |
| Radioactive Waste Facility Development and Operation Fund, or | 19 |
| the Hospital Basic Services Preservation Fund, or to any
funds | 20 |
| to which subsection (f) of Section 20-40 of the Nursing and | 21 |
| Advanced Practice Nursing Act applies. No transfers may be made | 22 |
| under this Section from the Pet Population Control Fund. | 23 |
| Notwithstanding any
other provision of this Section, for fiscal | 24 |
| year 2004,
the total transfer under this Section from the Road | 25 |
| Fund or the State
Construction Account Fund shall not exceed | 26 |
| the lesser of (i) 5% of the revenues to be deposited
into the | 27 |
| fund during that fiscal year or (ii) 25% of the beginning | 28 |
| balance in the fund.
For fiscal year 2005 through fiscal year | 29 |
| 2007, no amounts may be transferred under this Section from the | 30 |
| Road Fund, the State Construction Account Fund, the Criminal | 31 |
| Justice Information Systems Trust Fund, the Wireless Service | 32 |
| Emergency Fund, or the Mandatory Arbitration Fund.
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| In determining the available balance in a fund, the | 34 |
| Governor
may include receipts, transfers into the fund, and |
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| other
resources anticipated to be available in the fund in that | 2 |
| fiscal year.
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| The State Treasurer and Comptroller shall transfer the | 4 |
| amounts designated
under this Section as soon as may be | 5 |
| practicable after receiving the direction
to transfer from the | 6 |
| Governor.
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| (b) This Section does not apply to: (i) the Ticket For The | 8 |
| Cure Fund ; (ii)
or to any fund established under the Community | 9 |
| Senior Services and Resources Act; or (iii)
(ii) on or after | 10 |
| January 1, 2006 ( the effective date of Public Act 94-511)
this | 11 |
| amendatory Act of the 94th General Assembly , the Child Labor | 12 |
| and Day and Temporary Labor Enforcement Fund. | 13 |
| (c) This Section does not apply to the Demutualization | 14 |
| Trust Fund established under the Uniform Disposition of | 15 |
| Unclaimed Property Act.
| 16 |
| (d)
(c) This Section does not apply to moneys set aside in | 17 |
| the Illinois State Podiatric Disciplinary Fund for podiatric | 18 |
| scholarships and residency programs under the Podiatric | 19 |
| Scholarship and Residency Act. | 20 |
| (e) Subsection (a) does not apply to, and no transfer may | 21 |
| be made under this Section from, the Pension Stabilization | 22 |
| Fund.
| 23 |
| (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674, | 24 |
| eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04; | 25 |
| 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff. | 26 |
| 1-15-05; 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511, eff. | 27 |
| 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05; 94-645, | 28 |
| eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff. 11-2-05; | 29 |
| 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; revised 1-23-06.)
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| Section 10. The Budget Stabilization Act is amended by | 31 |
| changing Sections 10 and 15 and adding Sections 20 and 25 as | 32 |
| follows: |
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| (30 ILCS 122/10)
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| Sec. 10. Budget limitations.
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| (a) In addition to Section 50-5 of the State Budget Law
of | 4 |
| the Civil Administrative Code of Illinois, the General
| 5 |
| Assembly's appropriations and transfers or diversions as | 6 |
| required by
law from general funds shall not exceed
99%
99.5% | 7 |
| of the estimated general funds revenues for the fiscal
year | 8 |
| when revenue estimates of the State's general funds
revenues | 9 |
| exceed the prior fiscal year's estimated general
funds revenues | 10 |
| by more than 4%.
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| (b) The General Assembly's appropriations and transfers or
| 12 |
| diversions as required by law from general
funds shall not | 13 |
| exceed 98%
99% of the estimated general funds
revenues for the | 14 |
| fiscal year when revenue estimates of the
State's general funds | 15 |
| revenues exceed the prior fiscal year's
estimated general funds | 16 |
| revenues by more than 4% for 2 or
more consecutive fiscal | 17 |
| years.
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| (c) For the purpose of this Act, "estimated general funds | 19 |
| revenues"
include, for each budget year, all taxes, fees, and | 20 |
| other revenues
expected to be deposited into the State's | 21 |
| general funds, including
recurring transfers from other State | 22 |
| funds into the general funds.
| 23 |
| Year-over-year comparisons used to determine the | 24 |
| percentage growth
factor of estimated general funds revenues | 25 |
| shall exclude the sum of the
following: (i) expected revenues | 26 |
| resulting from new taxes or fees or
from tax or fee increases | 27 |
| during the first year of the change, (ii)
expected revenues | 28 |
| resulting from one-time receipts or non-recurring
transfers | 29 |
| in, (iii) expected proceeds resulting from borrowing, and
(iv) | 30 |
| increases in federal grants that must be completely | 31 |
| appropriated
based on the terms of the grants.
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| (Source: P.A. 93-660, eff. 7-1-04 .) | 33 |
| (30 ILCS 122/15)
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| Sec. 15. Transfers to Budget Stabilization Fund.
In | 2 |
| furtherance of the State's objective for the Budget | 3 |
| Stabilization
Fund to have resources representing 5% of the | 4 |
| State's annual general
funds revenues:
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| (a) For each fiscal year when the General Assembly's
| 6 |
| appropriations and transfers or diversions as required by law
| 7 |
| from general funds do not exceed 99%
99.5% of the
estimated | 8 |
| general funds revenues pursuant to subsection (a)
of Section | 9 |
| 10, the Comptroller shall transfer from the
General Revenue | 10 |
| Fund as provided by this Section a total
amount equal to 0.5%
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| .5% of the estimated general funds revenues
to the Budget | 12 |
| Stabilization Fund.
| 13 |
| (b) For each fiscal year when the General Assembly's
| 14 |
| appropriations and transfers or diversions as required by law
| 15 |
| from general funds do not exceed 98%
99% of the
estimated | 16 |
| general funds revenues pursuant to subsection (b)
of Section | 17 |
| 10, the Comptroller shall transfer from the
General Revenue | 18 |
| Fund as provided by this Section a total
amount equal to 1% of | 19 |
| the estimated general funds revenues to
the Budget | 20 |
| Stabilization Fund.
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| (c) The Comptroller shall transfer 1/12 of the total
amount | 22 |
| to be transferred each fiscal year under this Section
into the | 23 |
| Budget Stabilization Fund on the first day of each
month of | 24 |
| that fiscal year or as soon thereafter as possible.
The balance | 25 |
| of the Budget Stabilization Fund shall not exceed
5% of the | 26 |
| total of general funds revenues estimated for that
fiscal year | 27 |
| except as provided by subsection (d) of this Section.
| 28 |
| (d) If the balance of the Budget Stabilization Fund
exceeds | 29 |
| 5% of the total general funds revenues estimated for that
| 30 |
| fiscal year, the additional transfers are not required unless | 31 |
| there are
outstanding liabilities under Section 25 of the State | 32 |
| Finance Act from prior
fiscal years. If there are such | 33 |
| outstanding Section 25 liabilities, then the
Comptroller shall | 34 |
| continue to transfer 1/12 of the total amount identified
for |
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| transfer to the Budget Stabilization Fund on the first day of | 2 |
| each month
of that fiscal year or as soon thereafter as | 3 |
| possible to be reserved for
those Section 25 liabilities. | 4 |
| Nothing in this Act prohibits the General
Assembly from | 5 |
| appropriating additional moneys into the Budget Stabilization
| 6 |
| Fund.
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| (e) On or before August 31 of each fiscal year, the amount
| 8 |
| determined to be transferred to the Budget Stabilization Fund | 9 |
| shall be
reconciled to actual general funds revenues for that | 10 |
| fiscal year. The
final transfer for each fiscal year shall be | 11 |
| adjusted so that the
total amount transferred under this | 12 |
| Section is equal to the percentage specified in subsection
(a) | 13 |
| or (b) of this Section 10 of this Act , as applicable, based on | 14 |
| actual
general funds revenues calculated consistently with | 15 |
| subsection (c) of
Section 10 of this Act for each fiscal year.
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| (f) For the fiscal year beginning July 1, 2006 and for each | 17 |
| fiscal
year thereafter, the budget proposal to the General | 18 |
| Assembly shall identify
liabilities incurred in a
prior fiscal | 19 |
| year under Section 25 of the State Finance Act and the budget
| 20 |
| proposal shall provide
funding as allowable pursuant to | 21 |
| subsection (d) of this Section, if
applicable.
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| (Source: P.A. 93-660, eff. 7-1-04 .) | 23 |
| (30 ILCS 122/20 new) | 24 |
| Sec. 20. Pension Stabilization Fund. | 25 |
| (a) The Pension Stabilization Fund is hereby created as a | 26 |
| special fund in the State treasury. Moneys in the fund shall be | 27 |
| used for the sole purpose of making payments to the designated | 28 |
| retirement systems as provided in Section 25.
| 29 |
| (b) For each fiscal year when the General Assembly's
| 30 |
| appropriations and transfers or diversions as required by law
| 31 |
| from general funds do not exceed 99% of the
estimated general | 32 |
| funds revenues pursuant to subsection (a)
of Section 10, the | 33 |
| Comptroller shall transfer from the
General Revenue Fund as |
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| provided by this Section a total
amount equal to 0.5% of the | 2 |
| estimated general funds revenues
to the Pension Stabilization | 3 |
| Fund. | 4 |
| (c) For each fiscal year when the General Assembly's
| 5 |
| appropriations and transfers or diversions as required by law
| 6 |
| from general funds do not exceed 98% of the
estimated general | 7 |
| funds revenues pursuant to subsection (b)
of Section 10, the | 8 |
| Comptroller shall transfer from the
General Revenue Fund as | 9 |
| provided by this Section a total
amount equal to 1.0% of the | 10 |
| estimated general funds revenues
to the Pension Stabilization | 11 |
| Fund. | 12 |
| (d) The Comptroller shall transfer 1/12 of the total
amount | 13 |
| to be transferred each fiscal year under this Section
into the | 14 |
| Pension Stabilization Fund on the first day of each
month of | 15 |
| that fiscal year or as soon thereafter as possible; except that | 16 |
| the final transfer of the fiscal year shall be made as soon as | 17 |
| practical after the August 31 following the end of the fiscal | 18 |
| year. | 19 |
| Before the final transfer for a fiscal year is made, the | 20 |
| Comptroller shall reconcile the estimated general funds | 21 |
| revenues used in calculating the other transfers under this | 22 |
| Section for that fiscal year with the actual general funds | 23 |
| revenues for that fiscal year. The
final transfer for the | 24 |
| fiscal year shall be adjusted so that the
total amount | 25 |
| transferred under this Section for that fiscal year is equal to | 26 |
| the percentage specified in subsection
(b) or (c) of this | 27 |
| Section, whichever is applicable, of the actual
general funds | 28 |
| revenues for that fiscal year. The actual general funds | 29 |
| revenues for the fiscal year shall be calculated in a manner | 30 |
| consistent with subsection (c) of
Section 10 of this Act.
| 31 |
| (30 ILCS 122/25 new)
| 32 |
| Sec. 25. Transfers from the Pension Stabilization Fund. | 33 |
| (a) As used in this Section, "designated retirement |
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| systems" means: | 2 |
| (1) the State Employees' Retirement System of
| 3 |
| Illinois; | 4 |
| (2) the Teachers' Retirement System of the State of
| 5 |
| Illinois; | 6 |
| (3) the State Universities Retirement System; | 7 |
| (4) the Judges Retirement System of Illinois; and | 8 |
| (5) the General Assembly Retirement System. | 9 |
| (b) As soon as may be practical after any money is | 10 |
| deposited into the Pension Stabilization Fund, the State | 11 |
| Comptroller shall apportion the deposited amount among the | 12 |
| designated retirement systems and the State Comptroller and | 13 |
| State Treasurer shall pay the apportioned amounts to the | 14 |
| designated retirement systems. The amount deposited shall be | 15 |
| apportioned among the designated retirement systems in the same | 16 |
| proportion as their respective portions of the
total actuarial | 17 |
| reserve deficiency of the designated retirement systems, as | 18 |
| most
recently determined by the Governor's Office of Management | 19 |
| and
Budget. Amounts received by a designated retirement system | 20 |
| under this Section shall be used for funding the unfunded | 21 |
| liabilities of the retirement system. Payments under this | 22 |
| Section are authorized by the continuing appropriation under | 23 |
| Section 1.7 of the State Pension Funds Continuing Appropriation | 24 |
| Act. | 25 |
| (c) At the request of the State Comptroller, the Governor's | 26 |
| Office of Management and Budget shall
determine the individual | 27 |
| and total actuarial reserve deficiencies of the
designated | 28 |
| retirement systems. For this purpose, the
Governor's Office of | 29 |
| Management and Budget shall consider the
latest available audit | 30 |
| and actuarial reports of each of the
retirement systems and the | 31 |
| relevant reports and statistics of
the Public Pension Division | 32 |
| of the Department of
Financial and Professional Regulation. | 33 |
| (d) Payments to the designated retirement systems under | 34 |
| this Section shall be in addition to, and not in lieu of, any |
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| State contributions required under Section 2-124, 14-131, | 2 |
| 15-155, 16-158, or 18-131 of the Illinois Pension Code. | 3 |
| Section 15. The Illinois Pension Code is amended by adding | 4 |
| Section 1-124 and by changing Sections 2-124, 2-134, 14-108.3, | 5 |
| 14-131, 14-135.08, 15-155, 15-165, 16-158, 18-131, and 18-140 | 6 |
| as follows:
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| (40 ILCS 5/1-124 new)
| 8 |
| Sec. 1-124. Task force concerning Fiscal Year 2006 pension | 9 |
| payment. There is created a 4-member task force, with one | 10 |
| member appointed by each of the 4 legislative leaders and | 11 |
| staffed by the Commission on Government Forecasting and | 12 |
| Accountability, to study the issue of repayment of that portion | 13 |
| of the required State contribution mandated by Public Act | 14 |
| 88-593 that was reduced as a result of the passage of Public | 15 |
| Act 94-4 and to make recommendations on the development of a | 16 |
| way to repay the amount by which the contributions were reduced | 17 |
| within a 10-year period. The task force must report its | 18 |
| findings and recommendations to the General Assembly on or | 19 |
| before January 1, 2007.
| 20 |
| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 21 |
| Sec. 2-124. Contributions by State.
| 22 |
| (a) The State shall make contributions to the System by
| 23 |
| appropriations of amounts which, together with the | 24 |
| contributions of
participants, interest earned on investments, | 25 |
| and other income
will meet the cost of maintaining and | 26 |
| administering the System on a 90%
funded basis in accordance | 27 |
| with actuarial recommendations.
| 28 |
| (b) The Board shall determine the amount of State
| 29 |
| contributions required for each fiscal year on the basis of the
| 30 |
| actuarial tables and other assumptions adopted by the Board and | 31 |
| the
prescribed rate of interest, using the formula in |
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| subsection (c).
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| (c) For State fiscal years 2011 through 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.
| 17 |
| Notwithstanding any other provision of this Article, the | 18 |
| total required State
contribution for State fiscal year 2006 is | 19 |
| $4,157,000.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2007 is | 22 |
| $5,220,300.
| 23 |
| For each of State fiscal years 2007
2008 through 2010, the | 24 |
| State contribution to
the System, as a percentage of the | 25 |
| applicable employee payroll, shall be
increased in equal annual | 26 |
| increments from the required State contribution for State | 27 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 28 |
| State is contributing at the rate otherwise required under this | 29 |
| Section.
| 30 |
| Beginning in State fiscal year 2046, the minimum State | 31 |
| contribution for
each fiscal year shall be the amount needed to | 32 |
| maintain the total assets of
the System at 90% of the total | 33 |
| actuarial liabilities of the System.
| 34 |
| Notwithstanding any other provision of this Section, the |
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| required State
contribution for State fiscal year 2005 and for | 2 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 3 |
| calculated under this Section and
certified under Section | 4 |
| 2-134, shall not exceed an amount equal to (i) the
amount of | 5 |
| the required State contribution that would have been calculated | 6 |
| under
this Section for that fiscal year if the System had not | 7 |
| received any payments
under subsection (d) of Section 7.2 of | 8 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 9 |
| State's total debt service payments for that fiscal
year on the | 10 |
| bonds issued for the purposes of that Section 7.2, as | 11 |
| determined
and certified by the Comptroller, that is the same | 12 |
| as the System's portion of
the total moneys distributed under | 13 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 14 |
| Act. In determining this maximum for State fiscal years 2008 | 15 |
| through 2010, however, the amount referred to in item (i) shall | 16 |
| be increased, as a percentage of the applicable employee | 17 |
| payroll, in equal increments calculated from the sum of the | 18 |
| required State contribution for State fiscal year 2007 plus the | 19 |
| applicable portion of the State's total debt service payments | 20 |
| for fiscal year 2007 on the bonds issued for the purposes of | 21 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 22 |
| State fiscal year 2011, the
State is contributing at the rate | 23 |
| otherwise required under this Section.
| 24 |
| Amounts received by the System pursuant to Section 25 of | 25 |
| the Budget Stabilization Act in any fiscal year do not reduce | 26 |
| and do not constitute payment of any portion of the minimum | 27 |
| State contribution required under this Article in that fiscal | 28 |
| year. Such amounts shall not reduce, and shall not be included | 29 |
| in the calculation of, the required State contributions under | 30 |
| this Article in any future year until the System has reached a | 31 |
| funding ratio of at least 90%. A reference in this Article to | 32 |
| the "required State contribution" or any substantially similar | 33 |
| term does not include or apply to any amounts payable to the | 34 |
| System under Section 25 of the Budget Stabilization Act.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
| 2 |
| (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 3 |
| Sec. 2-134. To certify required State contributions and | 4 |
| submit vouchers.
| 5 |
| (a) The Board shall certify to the Governor on or before | 6 |
| December 15 of each
year the amount of the required State | 7 |
| contribution to the System for the next
fiscal year. The | 8 |
| certification shall include a copy of the actuarial
| 9 |
| recommendations upon which it is based.
| 10 |
| On or before May 1, 2004, 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 2005, taking | 13 |
| into account the amounts appropriated to and
received by the | 14 |
| System under subsection (d) of Section 7.2 of the General
| 15 |
| Obligation Bond Act.
| 16 |
| On or before July 1, 2005, the Board shall recalculate and | 17 |
| recertify
to the Governor the amount of the required State
| 18 |
| contribution to the System for State fiscal year 2006, taking | 19 |
| into account the changes in required State contributions made | 20 |
| by Public Act 94-4
this amendatory Act of the 94th General | 21 |
| Assembly .
| 22 |
| On or before July 1, 2006, 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 2007, taking | 25 |
| into account the changes in required State contributions made | 26 |
| by this amendatory Act of the 94th General Assembly.
| 27 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 28 |
| possible after the
15th day of each month the Board shall | 29 |
| submit vouchers for payment of State
contributions to the | 30 |
| System, in a total monthly amount of one-twelfth of the
| 31 |
| required annual State contribution certified under subsection | 32 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 33 |
| General Assembly through June 30, 2004, the Board shall not
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| submit vouchers for the remainder of fiscal year 2004 in excess | 2 |
| of the
fiscal year 2004 certified contribution amount | 3 |
| determined
under this Section after taking into consideration | 4 |
| the transfer to the
System under subsection (d) of Section | 5 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 6 |
| the State Comptroller and Treasurer by warrants drawn
on the | 7 |
| funds appropriated to the System for that fiscal year. If in | 8 |
| any month
the amount remaining unexpended from all other | 9 |
| appropriations to the System for
the applicable fiscal year | 10 |
| (including the appropriations to the System under
Section 8.12 | 11 |
| of the State Finance Act and Section 1 of the State Pension | 12 |
| Funds
Continuing Appropriation Act) is less than the amount | 13 |
| lawfully vouchered under
this Section, the difference shall be | 14 |
| paid from the General Revenue Fund under
the continuing | 15 |
| appropriation authority provided in Section 1.1 of the State
| 16 |
| Pension Funds Continuing Appropriation Act.
| 17 |
| (c) The full amount of any annual appropriation for the | 18 |
| System for
State fiscal year 1995 shall be transferred and made | 19 |
| available to the System
at the beginning of that fiscal year at | 20 |
| the request of the Board.
Any excess funds remaining at the end | 21 |
| of any fiscal year from appropriations
shall be retained by the | 22 |
| System as a general reserve to meet the System's
accrued | 23 |
| liabilities.
| 24 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 25 |
| eff. 6-1-05; 94-536, eff. 8-10-05; revised 8-19-05.)
| 26 |
| (40 ILCS 5/14-108.3)
| 27 |
| Sec. 14-108.3. Early retirement incentives.
| 28 |
| (a) To be eligible for the benefits provided in this | 29 |
| Section, a person
must:
| 30 |
| (1) be a member of this System who, on any day during | 31 |
| June, 2002, is
(i) in active payroll status in a position | 32 |
| of employment with a department
and an active contributor | 33 |
| to this System with respect to that employment,
and |
|
|
|
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| terminates that employment before the retirement annuity | 2 |
| under this
Article begins, or (ii) on layoff status from | 3 |
| such a position with a right of
re-employment or recall to | 4 |
| service, or (iii) receiving benefits under Section
14-123, | 5 |
| 14-123.1 or 14-124, but only if the member has not been | 6 |
| receiving
those benefits for a continuous period of more | 7 |
| than 2 years as of the date
of application;
| 8 |
| (2) not have received any retirement annuity under this | 9 |
| Article
beginning earlier than August 1, 2002;
| 10 |
| (3) file with the Board on or before December 31, 2002 | 11 |
| a written
application requesting the benefits provided in | 12 |
| this Section;
| 13 |
| (4) terminate employment under this Article no later | 14 |
| than December 31,
2002 (or the date established under | 15 |
| subsection (d), if applicable);
| 16 |
| (5) by the date of termination of service, have at | 17 |
| least 8 years of
creditable service under this Article, | 18 |
| without the use of any creditable
service established under | 19 |
| this Section;
| 20 |
| (6) by the date of termination of service, have at | 21 |
| least 5 years
of membership service earned while an | 22 |
| employee under this Article, which may
include military | 23 |
| service for which credit is established under Section
| 24 |
| 14-105(b), service during the qualifying period for which | 25 |
| credit is
established under Section 14-104(a), and service | 26 |
| for which credit has been
established by repaying a refund | 27 |
| under Section 14-130, but shall not include
service for | 28 |
| which any other optional service credit has been | 29 |
| established; and
| 30 |
| (7) not receive any early retirement benefit under | 31 |
| Section 16-133.3 of
this Code.
| 32 |
| (b)
An eligible person may establish up to 5 years of | 33 |
| creditable service
under this Article, in increments of one | 34 |
| month, by making the contributions
specified in subsection (c). |
|
|
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| In addition, for each month of creditable
service established | 2 |
| under this Section, a person's age at retirement shall
be | 3 |
| deemed to be one month older than it actually is.
| 4 |
| The creditable service established under this Section may | 5 |
| be used for
all purposes under this Article and the Retirement | 6 |
| Systems Reciprocal Act,
except for the computation of final | 7 |
| average compensation under Section
14-103.12 or the | 8 |
| determination of compensation under this or any other
Article | 9 |
| of this Code.
| 10 |
| The age enhancement established under this Section may not | 11 |
| be used to
enable any person to begin receiving a retirement | 12 |
| annuity calculated under
Section 14-110 before actually | 13 |
| attaining age 50 (without any age enhancement
under this | 14 |
| Section). The age enhancement established under this Section | 15 |
| may
be used for all other purposes under this Article | 16 |
| (including calculation of
a proportionate annuity payable by | 17 |
| this System under the Retirement Systems
Reciprocal Act), | 18 |
| except for purposes of the level income option in Section
| 19 |
| 14-112, the reversionary annuity under Section 14-113, and the | 20 |
| required
distributions under Section 14-121.1.
| 21 |
| The age enhancement established under this Section may be | 22 |
| used in
determining benefits payable under Article 16 of this | 23 |
| Code under the
Retirement Systems Reciprocal Act, if the person | 24 |
| has at least 5 years of
service credit in the Article 16 system | 25 |
| that was earned while participating
in that system as a teacher | 26 |
| (as defined in Section 16-106) employed by a
department (as | 27 |
| defined in Section 14-103.04).
Age enhancement established | 28 |
| under this Section shall not otherwise be used
in determining | 29 |
| benefits payable under other Articles of this Code under the
| 30 |
| Retirement Systems Reciprocal Act.
| 31 |
| (c) For all creditable service established under this | 32 |
| Section, a person
must pay to the System an employee | 33 |
| contribution to be determined by the
System, based on the | 34 |
| member's rate of compensation on June 1, 2002 (or
the last date |
|
|
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| before June 1, 2002 for which a rate can be determined) and
the | 2 |
| retirement contribution rate in effect on June 1, 2002 for the | 3 |
| member
(or for members with the same social security and | 4 |
| alternative formula status
as the member).
| 5 |
| If the member receives a lump sum payment for accumulated | 6 |
| vacation, sick
leave and personal leave upon withdrawal from | 7 |
| service, and the net amount of
that lump sum payment is at | 8 |
| least as great as the amount of the contribution
required under | 9 |
| this Section, the entire contribution must be paid by the
| 10 |
| employee by payroll deduction. If there is no such lump sum | 11 |
| payment, or if
it is less than the contribution required under | 12 |
| this Section, the member shall
make an initial payment by | 13 |
| payroll deduction, equal to the net amount of the
lump sum | 14 |
| payment for accumulated vacation, sick leave, and personal | 15 |
| leave,
and have the remaining amount due treated as a reduction | 16 |
| from the retirement
annuity in 24 equal monthly installments | 17 |
| beginning in the month in which the
retirement annuity takes | 18 |
| effect. The required contribution may be paid as a
pre-tax | 19 |
| deduction from earnings. For federal and Illinois tax purposes, | 20 |
| the
monthly amount by which the annuitant's benefit is reduced | 21 |
| shall not be
treated as a contribution by the annuitant, but | 22 |
| rather as a reduction of the
annuitant's monthly benefit.
| 23 |
| (c-5) The reduction in retirement annuity provided in | 24 |
| subsection (c) of
Section 14-108 does not apply to the annuity | 25 |
| of a person who retires under this
Section. A person who has | 26 |
| received any age enhancement or creditable service
under this | 27 |
| Section may begin to receive an unreduced retirement annuity | 28 |
| upon
attainment of age 55 with at least 25 years of creditable | 29 |
| service (including
any age enhancement and creditable service | 30 |
| established under this Section).
| 31 |
| (d) In order to ensure that the efficient operation of | 32 |
| State government
is not jeopardized by the simultaneous | 33 |
| retirement of large numbers of key
personnel, the director or | 34 |
| other head of a department may, for key employees
of that |
|
|
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| department, extend the December 31, 2002 deadline for | 2 |
| terminating
employment under this Article established in | 3 |
| subdivision (a)(4) of this
Section to a date not later than | 4 |
| April 30, 2003 by so notifying the System
in writing by | 5 |
| December 31, 2002.
| 6 |
| (e) Notwithstanding Section 14-111, a person who has | 7 |
| received any
age enhancement or creditable service under this | 8 |
| Section and who reenters
service under this Article (or as an | 9 |
| employee of a department under Article
16) other than as a | 10 |
| temporary employee thereby forfeits that age enhancement
and | 11 |
| creditable service and is entitled to a refund of the | 12 |
| contributions
made pursuant to this Section.
| 13 |
| (f) The System shall determine the amount of the increase | 14 |
| in the present value of future benefits resulting from the | 15 |
| granting of early retirement incentives
under this Section and | 16 |
| shall report that amount to the Governor and the Commission on | 17 |
| Government Forecasting and Accountability
on or after the | 18 |
| effective date of this amendatory Act of the 93rd General | 19 |
| Assembly and on or before November 15,
2004. Except in State | 20 |
| fiscal year 2006
Beginning with State fiscal year 2008 , the | 21 |
| increase
reported under this subsection (f) shall not be | 22 |
| included in the
calculation of the required State contribution | 23 |
| under Section 14-131.
| 24 |
| (g) In addition to the contributions otherwise required | 25 |
| under this Article,
the State shall appropriate and pay to the | 26 |
| System (i) an amount equal to
$70,000,000 in State fiscal years | 27 |
| 2004 and 2005 and (2) in each of State fiscal years 2007 | 28 |
| through 2015, a level dollar payment based upon the increase in | 29 |
| the percent value of future benefits provided by the early | 30 |
| retirement incentives provided under this Section amortized at | 31 |
| 8.5% interest .
| 32 |
| (h) The Commission on Government Forecasting and | 33 |
| Accountability (i) shall hold one or more hearings on or before | 34 |
| the last session day during the fall veto session of 2004 to |
|
|
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| 1 |
| review recommendations relating to funding of early retirement | 2 |
| incentives under this Section and (ii) shall file its report | 3 |
| with the General Assembly on or before December 31, 2004 making | 4 |
| its recommendations relating to funding of early retirement | 5 |
| incentives under this Section; the Commission's report may | 6 |
| contain both majority recommendations and minority | 7 |
| recommendations. The System shall recalculate and recertify to | 8 |
| the Governor by January 31, 2005 the amount of the required | 9 |
| State contribution to the System for State fiscal year 2005 | 10 |
| with respect to those incentives. The Pension Laws Commission | 11 |
| (or its successor, the
Commission on Government Forecasting and | 12 |
| Accountability) shall determine
and report to the General
| 13 |
| Assembly, on or before January 1, 2004 and annually thereafter | 14 |
| through the year
2013, its estimate of (1) the annual amount of | 15 |
| payroll savings likely to be
realized by the State as a result | 16 |
| of the early retirement of persons receiving
early retirement | 17 |
| incentives under this Section and (2) the net annual savings
or | 18 |
| cost to the State from the program of early retirement | 19 |
| incentives created
under this Section.
| 20 |
| The System, the Department of Central Management Services, | 21 |
| the
Governor's Office of Management and Budget (formerly
Bureau | 22 |
| of
the Budget), and all other departments shall provide to the | 23 |
| Commission any
assistance that the Commission may request with | 24 |
| respect to its reports under
this Section. The Commission may | 25 |
| require departments to provide it with any
information that it | 26 |
| deems necessary or useful with respect to its reports under
| 27 |
| this Section, including without limitation information about | 28 |
| (1) the final
earnings of former department employees who | 29 |
| elected to receive benefits under
this Section, (2) the | 30 |
| earnings of current department employees holding the
positions | 31 |
| vacated by persons who elected to receive benefits under this
| 32 |
| Section, and (3) positions vacated by persons who elected to | 33 |
| receive benefits
under this Section that have not yet been | 34 |
| refilled.
|
|
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| (i) The changes made to this Section by this amendatory Act | 2 |
| of the 92nd
General Assembly do not apply to persons who | 3 |
| retired under this Section on or
before May 1, 1992.
| 4 |
| (Source: P.A. 93-632, eff. 2-1-04; 93-839, eff. 7-30-04; | 5 |
| 93-1067, eff. 1-15-05; 94-4, eff. 6-1-05.)
| 6 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 7 |
| Sec. 14-131. Contributions by State.
| 8 |
| (a) The State shall make contributions to the System by | 9 |
| appropriations of
amounts which, together with other employer | 10 |
| contributions from trust, federal,
and other funds, employee | 11 |
| contributions, investment income, and other income,
will be | 12 |
| sufficient to meet the cost of maintaining and administering | 13 |
| the System
on a 90% funded basis in accordance with actuarial | 14 |
| recommendations.
| 15 |
| For the purposes of this Section and Section 14-135.08, | 16 |
| references to State
contributions refer only to employer | 17 |
| contributions and do not include employee
contributions that | 18 |
| are picked up or otherwise paid by the State or a
department on | 19 |
| behalf of the employee.
| 20 |
| (b) The Board shall determine the total amount of State | 21 |
| contributions
required for each fiscal year on the basis of the | 22 |
| actuarial tables and other
assumptions adopted by the Board, | 23 |
| using the formula in subsection (e).
| 24 |
| The Board shall also determine a State contribution rate | 25 |
| for each fiscal
year, expressed as a percentage of payroll, | 26 |
| based on the total required State
contribution for that fiscal | 27 |
| year (less the amount received by the System from
| 28 |
| appropriations under Section 8.12 of the State Finance Act and | 29 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 30 |
| Act, if any, for the fiscal year
ending on the June 30 | 31 |
| immediately preceding the applicable November 15
certification | 32 |
| deadline), the estimated payroll (including all forms of
| 33 |
| compensation) for personal services rendered by eligible |
|
|
|
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| employees, and the
recommendations of the actuary.
| 2 |
| For the purposes of this Section and Section 14.1 of the | 3 |
| State Finance Act,
the term "eligible employees" includes | 4 |
| employees who participate in the System,
persons who may elect | 5 |
| to participate in the System but have not so elected,
persons | 6 |
| who are serving a qualifying period that is required for | 7 |
| participation,
and annuitants employed by a department as | 8 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 9 |
| (c) Contributions shall be made by the several departments | 10 |
| for each pay
period by warrants drawn by the State Comptroller | 11 |
| against their respective
funds or appropriations based upon | 12 |
| vouchers stating the amount to be so
contributed. These amounts | 13 |
| shall be based on the full rate certified by the
Board under | 14 |
| Section 14-135.08 for that fiscal year.
From the effective date | 15 |
| of this amendatory Act of the 93rd General
Assembly through the | 16 |
| payment of the final payroll from fiscal year 2004
| 17 |
| appropriations, the several departments shall not make | 18 |
| contributions
for the remainder of fiscal year 2004 but shall | 19 |
| instead make payments
as required under subsection (a-1) of | 20 |
| Section 14.1 of the State Finance Act.
The several departments | 21 |
| shall resume those contributions at the commencement of
fiscal | 22 |
| year 2005.
| 23 |
| (d) If an employee is paid from trust funds or federal | 24 |
| funds, the
department or other employer shall pay employer | 25 |
| contributions from those funds
to the System at the certified | 26 |
| rate, unless the terms of the trust or the
federal-State | 27 |
| agreement preclude the use of the funds for that purpose, in
| 28 |
| which case the required employer contributions shall be paid by | 29 |
| the State.
From the effective date of this amendatory
Act of | 30 |
| the 93rd General Assembly through the payment of the final
| 31 |
| payroll from fiscal year 2004 appropriations, the department or | 32 |
| other
employer shall not pay contributions for the remainder of | 33 |
| fiscal year
2004 but shall instead make payments as required | 34 |
| under subsection (a-1) of
Section 14.1 of the State Finance |
|
|
|
09400HB1815ham002 |
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| 1 |
| Act. The department or other employer shall
resume payment of
| 2 |
| contributions at the commencement of fiscal year 2005.
| 3 |
| (e) For State fiscal years 2011 through 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
| 27 |
| applicable employee payroll, even if the indicated percentage | 28 |
| will produce a
State contribution in excess of the amount | 29 |
| otherwise required under this
subsection and subsection (a):
| 30 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 31 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 32 |
| Notwithstanding any other provision of this Article, the | 33 |
| total required State
contribution to the System for State | 34 |
| fiscal year 2006 is $203,783,900.
|
|
|
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09400HB1815ham002 |
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| Notwithstanding any other provision of this Article, the | 2 |
| total required State
contribution to the System for State | 3 |
| fiscal year 2007 is $344,164,400.
| 4 |
| For each of State fiscal years 2007
2008 through 2010, the | 5 |
| State contribution to
the System, as a percentage of the | 6 |
| applicable employee payroll, shall be
increased in equal annual | 7 |
| increments from the required State contribution for State | 8 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 9 |
| State is contributing at the rate otherwise required under this | 10 |
| Section.
| 11 |
| Beginning in State fiscal year 2046, the minimum State | 12 |
| contribution for
each fiscal year shall be the amount needed to | 13 |
| maintain the total assets of
the System at 90% of the total | 14 |
| actuarial liabilities of the System.
| 15 |
| Notwithstanding any other provision of this Section, the | 16 |
| required State
contribution for State fiscal year 2005 and for | 17 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 18 |
| calculated under this Section and
certified under Section | 19 |
| 14-135.08, shall not exceed an amount equal to (i) the
amount | 20 |
| of the required State contribution that would have been | 21 |
| calculated under
this Section for that fiscal year if the | 22 |
| System had not received any payments
under subsection (d) of | 23 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 24 |
| portion of the State's total debt service payments for that | 25 |
| fiscal
year on the bonds issued for the purposes of that | 26 |
| Section 7.2, as determined
and certified by the Comptroller, | 27 |
| that is the same as the System's portion of
the total moneys | 28 |
| distributed under subsection (d) of Section 7.2 of the General
| 29 |
| Obligation Bond Act. In determining this maximum for State | 30 |
| fiscal years 2008 through 2010, however, the amount referred to | 31 |
| in item (i) shall be increased, as a percentage of the | 32 |
| applicable employee payroll, in equal increments calculated | 33 |
| from the sum of the required State contribution for State | 34 |
| fiscal year 2007 plus the applicable portion of the State's |
|
|
|
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| total debt service payments for fiscal year 2007 on the bonds | 2 |
| issued for the purposes of Section 7.2 of the General
| 3 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
| 4 |
| State is contributing at the rate otherwise required under this | 5 |
| Section.
| 6 |
| Amounts received by the System pursuant to Section 25 of | 7 |
| the Budget Stabilization Act in any fiscal year do not reduce | 8 |
| and do not constitute payment of any portion of the minimum | 9 |
| State contribution required under this Article in that fiscal | 10 |
| year. Such amounts shall not reduce, and shall not be included | 11 |
| in the calculation of, the required State contributions under | 12 |
| this Article in any future year until the System has reached a | 13 |
| funding ratio of at least 90%. A reference in this Article to | 14 |
| the "required State contribution" or any substantially similar | 15 |
| term does not include or apply to any amounts payable to the | 16 |
| System under Section 25 of the Budget Stabilization Act.
| 17 |
| (f) After the submission of all payments for eligible | 18 |
| employees
from personal services line items in fiscal year 2004 | 19 |
| have been made,
the Comptroller shall provide to the System a | 20 |
| certification of the sum
of all fiscal year 2004 expenditures | 21 |
| for personal services that would
have been covered by payments | 22 |
| to the System under this Section if the
provisions of this | 23 |
| amendatory Act of the 93rd General Assembly had not been
| 24 |
| enacted. Upon
receipt of the certification, the System shall | 25 |
| determine the amount
due to the System based on the full rate | 26 |
| certified by the Board under
Section 14-135.08 for fiscal year | 27 |
| 2004 in order to meet the State's
obligation under this | 28 |
| Section. The System shall compare this amount
due to the amount | 29 |
| received by the System in fiscal year 2004 through
payments | 30 |
| under this Section and under Section 6z-61 of the State Finance | 31 |
| Act.
If the amount
due is more than the amount received, the | 32 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 33 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 34 |
| shall be satisfied under Section 1.2 of the State
Pension Funds |
|
|
|
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| 1 |
| Continuing Appropriation Act. If the amount due is less than | 2 |
| the
amount received, the
difference shall be termed the "Fiscal | 3 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 4 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 5 |
| the Pension Contribution Fund as soon as practicable
after the | 6 |
| certification.
| 7 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 8 |
| eff. 6-1-05.)
| 9 |
| (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 10 |
| Sec. 14-135.08. To certify required State contributions. | 11 |
| (a)
To certify to the Governor and to each department, on | 12 |
| or before
November 15 of each year, the required rate for State | 13 |
| contributions to the
System for the next State fiscal year, as | 14 |
| determined under subsection (b) of
Section 14-131. The | 15 |
| certification to the Governor shall include a copy of the
| 16 |
| actuarial recommendations upon which the rate is based.
| 17 |
| (b) The certification shall include an additional amount | 18 |
| necessary to pay all principal of and interest on those general | 19 |
| obligation bonds due the next fiscal year authorized by Section | 20 |
| 7.2(a) of the General Obligation Bond Act and issued to provide | 21 |
| the proceeds deposited by the State with the System in July | 22 |
| 2003, representing deposits other than amounts reserved under | 23 |
| Section 7.2(c) of the General Obligation Bond Act. For State | 24 |
| fiscal year 2005, the Board shall make a supplemental | 25 |
| certification of the additional amount necessary to pay all | 26 |
| principal of and interest on those general obligation bonds due | 27 |
| in State fiscal years 2004 and 2005 authorized by Section | 28 |
| 7.2(a) of the General Obligation Bond Act and issued to provide | 29 |
| the proceeds deposited by the State with the System in July | 30 |
| 2003, representing deposits other than amounts reserved under | 31 |
| Section 7.2(c) of the General Obligation Bond Act, as soon as | 32 |
| practical after the effective date of this amendatory Act of | 33 |
| the 93rd General Assembly.
|
|
|
|
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| 1 |
| On or before May 1, 2004, the Board shall recalculate and | 2 |
| recertify
to the Governor and to each department the amount of | 3 |
| the required State
contribution to the System and the required | 4 |
| rates for State contributions
to the System for State fiscal | 5 |
| year 2005, taking into account the amounts
appropriated to and | 6 |
| received by the System under subsection (d) of Section
7.2 of | 7 |
| the General Obligation Bond Act.
| 8 |
| On or before July 1, 2005, the Board shall recalculate and | 9 |
| recertify
to the Governor and to each department the amount of | 10 |
| the required State
contribution to the System and the required | 11 |
| rates for State contributions
to the System for State fiscal | 12 |
| year 2006, taking into account the changes in required State | 13 |
| contributions made by Public Act 94-4
this amendatory Act of | 14 |
| the 94th General Assembly .
| 15 |
| On or before July 1, 2006, the Board shall recalculate and | 16 |
| recertify
to the Governor and to each department the amount of | 17 |
| the required State
contribution to the System and the required | 18 |
| rates for State contributions
to the System for State fiscal | 19 |
| year 2007, taking into account the changes in required State | 20 |
| contributions made by this amendatory Act of the 94th General | 21 |
| Assembly.
| 22 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4, | 23 |
| eff. 6-1-05.)
| 24 |
| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 25 |
| Sec. 15-155. Employer contributions.
| 26 |
| (a) The State of Illinois shall make contributions by | 27 |
| appropriations of
amounts which, together with the other | 28 |
| employer contributions from trust,
federal, and other funds, | 29 |
| employee contributions, income from investments,
and other | 30 |
| income of this System, will be sufficient to meet the cost of
| 31 |
| maintaining and administering the System on a 90% funded basis | 32 |
| in accordance
with actuarial recommendations.
| 33 |
| The Board shall determine the amount of State contributions |
|
|
|
09400HB1815ham002 |
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|
| 1 |
| required for
each fiscal year on the basis of the actuarial | 2 |
| tables and other assumptions
adopted by the Board and the | 3 |
| recommendations of the actuary, using the formula
in subsection | 4 |
| (a-1).
| 5 |
| (a-1) For State fiscal years 2011 through 2045, the minimum | 6 |
| contribution
to the System to be made by the State for each | 7 |
| fiscal year shall be an amount
determined by the System to be | 8 |
| sufficient to bring the total assets of the
System up to 90% of | 9 |
| the total actuarial liabilities of the System by the end of
| 10 |
| State fiscal year 2045. In making these determinations, the | 11 |
| required State
contribution shall be calculated each year as a | 12 |
| level percentage of payroll
over the years remaining to and | 13 |
| including fiscal year 2045 and shall be
determined under the | 14 |
| projected unit credit actuarial cost method.
| 15 |
| For State fiscal years 1996 through 2005, the State | 16 |
| contribution to
the System, as a percentage of the applicable | 17 |
| employee payroll, shall be
increased in equal annual increments | 18 |
| so that by State fiscal year 2011, the
State is contributing at | 19 |
| the rate required under this Section.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2006 is | 22 |
| $166,641,900.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State
contribution for State fiscal year 2007 is | 25 |
| $252,064,100.
| 26 |
| For each of State fiscal years 2007
2008 through 2010, the | 27 |
| State contribution to
the System, as a percentage of the | 28 |
| applicable employee payroll, shall be
increased in equal annual | 29 |
| increments from the required State contribution for State | 30 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 31 |
| State is contributing at the rate otherwise required under this | 32 |
| Section.
| 33 |
| Beginning in State fiscal year 2046, the minimum State | 34 |
| contribution for
each fiscal year shall be the amount needed to |
|
|
|
09400HB1815ham002 |
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| 1 |
| maintain the total assets of
the System at 90% of the total | 2 |
| actuarial liabilities of the System.
| 3 |
| Notwithstanding any other provision of this Section, the | 4 |
| required State
contribution for State fiscal year 2005 and for | 5 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 6 |
| calculated under this Section and
certified under Section | 7 |
| 15-165, shall not exceed an amount equal to (i) the
amount of | 8 |
| the required State contribution that would have been calculated | 9 |
| under
this Section for that fiscal year if the System had not | 10 |
| received any payments
under subsection (d) of Section 7.2 of | 11 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 12 |
| State's total debt service payments for that fiscal
year on the | 13 |
| bonds issued for the purposes of that Section 7.2, as | 14 |
| determined
and certified by the Comptroller, that is the same | 15 |
| as the System's portion of
the total moneys distributed under | 16 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 17 |
| Act. In determining this maximum for State fiscal years 2008 | 18 |
| through 2010, however, the amount referred to in item (i) shall | 19 |
| be increased, as a percentage of the applicable employee | 20 |
| payroll, in equal increments calculated from the sum of the | 21 |
| required State contribution for State fiscal year 2007 plus the | 22 |
| applicable portion of the State's total debt service payments | 23 |
| for fiscal year 2007 on the bonds issued for the purposes of | 24 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 25 |
| State fiscal year 2011, the
State is contributing at the rate | 26 |
| otherwise required under this Section.
| 27 |
| Amounts received by the System pursuant to Section 25 of | 28 |
| the Budget Stabilization Act in any fiscal year do not reduce | 29 |
| and do not constitute payment of any portion of the minimum | 30 |
| State contribution required under this Article in that fiscal | 31 |
| year. Such amounts shall not reduce, and shall not be included | 32 |
| in the calculation of, the required State contributions under | 33 |
| this Article in any future year until the System has reached a | 34 |
| funding ratio of at least 90%. A reference in this Article to |
|
|
|
09400HB1815ham002 |
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|
| 1 |
| the "required State contribution" or any substantially similar | 2 |
| term does not include or apply to any amounts payable to the | 3 |
| System under Section 25 of the Budget Stabilization Act.
| 4 |
| (b) If an employee is paid from trust or federal funds, the | 5 |
| employer
shall pay to the Board contributions from those funds | 6 |
| which are
sufficient to cover the accruing normal costs on | 7 |
| behalf of the employee.
However, universities having employees | 8 |
| who are compensated out of local
auxiliary funds, income funds, | 9 |
| or service enterprise funds are not required
to pay such | 10 |
| contributions on behalf of those employees. The local auxiliary
| 11 |
| funds, income funds, and service enterprise funds of | 12 |
| universities shall not be
considered trust funds for the | 13 |
| purpose of this Article, but funds of alumni
associations, | 14 |
| foundations, and athletic associations which are affiliated | 15 |
| with
the universities included as employers under this Article | 16 |
| and other employers
which do not receive State appropriations | 17 |
| are considered to be trust funds for
the purpose of this | 18 |
| Article.
| 19 |
| (b-1) The City of Urbana and the City of Champaign shall | 20 |
| each make
employer contributions to this System for their | 21 |
| respective firefighter
employees who participate in this | 22 |
| System pursuant to subsection (h) of Section
15-107. The rate | 23 |
| of contributions to be made by those municipalities shall
be | 24 |
| determined annually by the Board on the basis of the actuarial | 25 |
| assumptions
adopted by the Board and the recommendations of the | 26 |
| actuary, and shall be
expressed as a percentage of salary for | 27 |
| each such employee. The Board shall
certify the rate to the | 28 |
| affected municipalities as soon as may be practical.
The | 29 |
| employer contributions required under this subsection shall be | 30 |
| remitted by
the municipality to the System at the same time and | 31 |
| in the same manner as
employee contributions.
| 32 |
| (c) Through State fiscal year 1995: The total employer | 33 |
| contribution shall
be apportioned among the various funds of | 34 |
| the State and other employers,
whether trust, federal, or other |
|
|
|
09400HB1815ham002 |
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| 1 |
| funds, in accordance with actuarial procedures
approved by the | 2 |
| Board. State of Illinois contributions for employers receiving
| 3 |
| State appropriations for personal services shall be payable | 4 |
| from appropriations
made to the employers or to the System. The | 5 |
| contributions for Class I
community colleges covering earnings | 6 |
| other than those paid from trust and
federal funds, shall be | 7 |
| payable solely from appropriations to the Illinois
Community | 8 |
| College Board or the System for employer contributions.
| 9 |
| (d) Beginning in State fiscal year 1996, the required State | 10 |
| contributions
to the System shall be appropriated directly to | 11 |
| the System and shall be payable
through vouchers issued in | 12 |
| accordance with subsection (c) of Section 15-165, except as | 13 |
| provided in subsection (g).
| 14 |
| (e) The State Comptroller shall draw warrants payable to | 15 |
| the System upon
proper certification by the System or by the | 16 |
| employer in accordance with the
appropriation laws and this | 17 |
| Code.
| 18 |
| (f) Normal costs under this Section means liability for
| 19 |
| pensions and other benefits which accrues to the System because | 20 |
| of the
credits earned for service rendered by the participants | 21 |
| during the
fiscal year and expenses of administering the | 22 |
| System, but shall not
include the principal of or any | 23 |
| redemption premium or interest on any bonds
issued by the Board | 24 |
| or any expenses incurred or deposits required in
connection | 25 |
| therewith.
| 26 |
| (g) If the amount of a participant's earnings for any | 27 |
| academic year used to determine the final rate of earnings | 28 |
| exceeds the amount of his or her earnings with the same | 29 |
| employer for the previous academic year by more than 6%, the | 30 |
| participant's employer shall pay to the System, in addition to | 31 |
| all other payments required under this Section and in | 32 |
| accordance with guidelines established by the System, the | 33 |
| present value of the increase in benefits resulting from the | 34 |
| portion of the increase in earnings that is in excess of 6%. |
|
|
|
09400HB1815ham002 |
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|
| 1 |
| This present value shall be computed by the System on the basis | 2 |
| of the actuarial assumptions and tables used in the most recent | 3 |
| actuarial valuation of the System that is available at the time | 4 |
| of the computation. The employer contributions required under | 5 |
| this subsection (g) shall be paid in the form of a lump sum | 6 |
| within 30 days after receipt of the bill after the participant | 7 |
| begins receiving benefits under this Article.
| 8 |
| The provisions of this subsection (g) do not apply to | 9 |
| earnings increases paid to participants under contracts or | 10 |
| collective bargaining agreements entered into, amended, or | 11 |
| renewed before the effective date of this amendatory Act of the | 12 |
| 94th General Assembly.
| 13 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
| 14 |
| (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 15 |
| Sec. 15-165. To certify amounts and submit vouchers.
| 16 |
| (a) The Board shall certify to the Governor on or before | 17 |
| November 15 of each
year the appropriation required from State | 18 |
| funds for the purposes of this
System for the following fiscal | 19 |
| year. The certification shall include a copy
of the actuarial | 20 |
| recommendations upon which it is based.
| 21 |
| On or before May 1, 2004, the Board shall recalculate and | 22 |
| recertify to
the Governor the amount of the required State | 23 |
| contribution to the System for
State fiscal year 2005, taking | 24 |
| into account the amounts appropriated to and
received by the | 25 |
| System under subsection (d) of Section 7.2 of the General
| 26 |
| Obligation Bond Act.
| 27 |
| On or before July 1, 2005, the Board shall recalculate and | 28 |
| recertify
to the Governor the amount of the required State
| 29 |
| contribution to the System for State fiscal year 2006, taking | 30 |
| into account the changes in required State contributions made | 31 |
| by Public Act 94-4
this amendatory Act of the 94th General | 32 |
| Assembly .
| 33 |
| On or before July 1, 2006, the Board shall recalculate and |
|
|
|
09400HB1815ham002 |
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LRB094 03150 EFG 58456 a |
|
| 1 |
| recertify
to the Governor the amount of the required State
| 2 |
| contribution to the System for State fiscal year 2007, taking | 3 |
| into account the changes in required State contributions made | 4 |
| by this amendatory Act of the 94th General Assembly.
| 5 |
| (b) The Board shall certify to the State Comptroller or | 6 |
| employer, as the
case may be, from time to time, by its | 7 |
| president and secretary, with its seal
attached, the amounts | 8 |
| payable to the System from the various funds.
| 9 |
| (c) Beginning in State fiscal year 1996, on or as soon as | 10 |
| possible after the
15th day of each month the Board shall | 11 |
| submit vouchers for payment of State
contributions to the | 12 |
| System, in a total monthly amount of one-twelfth of the
| 13 |
| required annual State contribution certified under subsection | 14 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 15 |
| General Assembly through June 30, 2004, the Board shall not
| 16 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 17 |
| of the
fiscal year 2004 certified contribution amount | 18 |
| determined
under this Section after taking into consideration | 19 |
| the transfer to the
System under subsection (b) of Section | 20 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 21 |
| the State Comptroller and Treasurer by warrants drawn
on the | 22 |
| funds appropriated to the System for that fiscal year.
| 23 |
| If in any month the amount remaining unexpended from all | 24 |
| other
appropriations to the System for the applicable fiscal | 25 |
| year (including the
appropriations to the System under Section | 26 |
| 8.12 of the State Finance Act and
Section 1 of the State | 27 |
| Pension Funds Continuing Appropriation Act) is less than
the | 28 |
| amount lawfully vouchered under this Section, the difference | 29 |
| shall be paid
from the General Revenue Fund under the | 30 |
| continuing appropriation authority
provided in Section 1.1 of | 31 |
| the State Pension Funds Continuing Appropriation
Act.
| 32 |
| (d) So long as the payments received are the full amount | 33 |
| lawfully
vouchered under this Section, payments received by the | 34 |
| System under this
Section shall be applied first toward the |
|
|
|
09400HB1815ham002 |
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|
| 1 |
| employer contribution to the
self-managed plan established | 2 |
| under Section 15-158.2. Payments shall be
applied second toward | 3 |
| the employer's portion of the normal costs of the System,
as | 4 |
| defined in subsection (f) of Section 15-155. The balance shall | 5 |
| be applied
toward the unfunded actuarial liabilities of the | 6 |
| System.
| 7 |
| (e) In the event that the System does not receive, as a | 8 |
| result of
legislative enactment or otherwise, payments | 9 |
| sufficient to
fully fund the employer contribution to the | 10 |
| self-managed plan
established under Section 15-158.2 and to | 11 |
| fully fund that portion of the
employer's portion of the normal | 12 |
| costs of the System, as calculated in
accordance with Section | 13 |
| 15-155(a-1), then any payments received shall be
applied | 14 |
| proportionately to the optional retirement program established | 15 |
| under
Section 15-158.2 and to the employer's portion of the | 16 |
| normal costs of the
System, as calculated in accordance with | 17 |
| Section 15-155(a-1).
| 18 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 19 |
| eff. 6-1-05.)
| 20 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 21 |
| Sec. 16-158. Contributions by State and other employing | 22 |
| units.
| 23 |
| (a) The State shall make contributions to the System by | 24 |
| means of
appropriations from the Common School Fund and other | 25 |
| State funds of amounts
which, together with other employer | 26 |
| contributions, employee contributions,
investment income, and | 27 |
| other income, will be sufficient to meet the cost of
| 28 |
| maintaining and administering the System on a 90% funded basis | 29 |
| in accordance
with actuarial recommendations.
| 30 |
| The Board shall determine the amount of State contributions | 31 |
| required for
each fiscal year on the basis of the actuarial | 32 |
| tables and other assumptions
adopted by the Board and the | 33 |
| recommendations of the actuary, using the formula
in subsection |
|
|
|
09400HB1815ham002 |
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LRB094 03150 EFG 58456 a |
|
| 1 |
| (b-3).
| 2 |
| (a-1) Annually, on or before November 15, the Board shall | 3 |
| certify to the
Governor the amount of the required State | 4 |
| contribution for the coming fiscal
year. The certification | 5 |
| shall include a copy of the actuarial recommendations
upon | 6 |
| which it is based.
| 7 |
| On or before May 1, 2004, the Board shall recalculate and | 8 |
| recertify to
the Governor the amount of the required State | 9 |
| contribution to the System for
State fiscal year 2005, taking | 10 |
| into account the amounts appropriated to and
received by the | 11 |
| System under subsection (d) of Section 7.2 of the General
| 12 |
| Obligation Bond Act.
| 13 |
| On or before July 1, 2005, the Board shall recalculate and | 14 |
| recertify
to the Governor the amount of the required State
| 15 |
| contribution to the System for State fiscal year 2006, taking | 16 |
| into account the changes in required State contributions made | 17 |
| by Public Act 94-4
this amendatory Act of the 94th General | 18 |
| Assembly .
| 19 |
| On or before July 1, 2006, the Board shall recalculate and | 20 |
| recertify
to the Governor the amount of the required State
| 21 |
| contribution to the System for State fiscal year 2007, taking | 22 |
| into account the changes in required State contributions made | 23 |
| by this amendatory Act of the 94th General Assembly.
| 24 |
| (b) Through State fiscal year 1995, the State contributions | 25 |
| shall be
paid to the System in accordance with Section 18-7 of | 26 |
| the School Code.
| 27 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 28 |
| of each month,
or as soon thereafter as may be practicable, the | 29 |
| Board shall submit vouchers
for payment of State contributions | 30 |
| to the System, in a total monthly amount of
one-twelfth of the | 31 |
| required annual State contribution certified under
subsection | 32 |
| (a-1).
From the
effective date of this amendatory Act of the | 33 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 34 |
| not submit vouchers for the
remainder of fiscal year 2004 in |
|
|
|
09400HB1815ham002 |
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LRB094 03150 EFG 58456 a |
|
| 1 |
| excess of the fiscal year 2004
certified contribution amount | 2 |
| determined under this Section
after taking into consideration | 3 |
| the transfer to the System
under subsection (a) of Section | 4 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 5 |
| the State Comptroller and
Treasurer by warrants drawn on the | 6 |
| funds appropriated to the System for that
fiscal year.
| 7 |
| If in any month the amount remaining unexpended from all | 8 |
| other appropriations
to the System for the applicable fiscal | 9 |
| year (including the appropriations to
the System under Section | 10 |
| 8.12 of the State Finance Act and Section 1 of the
State | 11 |
| Pension Funds Continuing Appropriation Act) is less than the | 12 |
| amount
lawfully vouchered under this subsection, the | 13 |
| difference shall be paid from the
Common School Fund under the | 14 |
| continuing appropriation authority provided in
Section 1.1 of | 15 |
| the State Pension Funds Continuing Appropriation Act.
| 16 |
| (b-2) Allocations from the Common School Fund apportioned | 17 |
| to school
districts not coming under this System shall not be | 18 |
| diminished or affected by
the provisions of this Article.
| 19 |
| (b-3) For State fiscal years 2011 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 90% of | 23 |
| 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 | 27 |
| including fiscal year 2045 and shall be
determined under the | 28 |
| projected unit credit actuarial cost method.
| 29 |
| For State fiscal years 1996 through 2005, the State | 30 |
| contribution to the
System, as a percentage of the applicable | 31 |
| employee payroll, shall be increased
in equal annual increments | 32 |
| so that by State fiscal year 2011, the State is
contributing at | 33 |
| the rate required under this Section; except that in the
| 34 |
| following specified State fiscal years, the State contribution |
|
|
|
09400HB1815ham002 |
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LRB094 03150 EFG 58456 a |
|
| 1 |
| to the System
shall not be less than the following indicated | 2 |
| percentages of the applicable
employee payroll, even if the | 3 |
| indicated percentage will produce a State
contribution in | 4 |
| excess of the amount otherwise required under this subsection
| 5 |
| and subsection (a), and notwithstanding any contrary | 6 |
| certification made under
subsection (a-1) before the effective | 7 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 8 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 9 |
| 2003; and
13.56% in FY 2004.
| 10 |
| Notwithstanding any other provision of this Article, the | 11 |
| total required State
contribution for State fiscal year 2006 is | 12 |
| $534,627,700.
| 13 |
| Notwithstanding any other provision of this Article, the | 14 |
| total required State
contribution for State fiscal year 2007 is | 15 |
| $738,014,500.
| 16 |
| For each of State fiscal years 2007
2008 through 2010, the | 17 |
| State contribution to
the System, as a percentage of the | 18 |
| applicable employee payroll, shall be
increased in equal annual | 19 |
| increments from the required State contribution for State | 20 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 21 |
| State is contributing at the rate otherwise required under this | 22 |
| Section.
| 23 |
| Beginning in State fiscal year 2046, the minimum State | 24 |
| contribution for
each fiscal year shall be the amount needed to | 25 |
| maintain the total assets of
the System at 90% of the total | 26 |
| actuarial liabilities of the System.
| 27 |
| Notwithstanding any other provision of this Section, the | 28 |
| required State
contribution for State fiscal year 2005 and for | 29 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 30 |
| calculated under this Section and
certified under subsection | 31 |
| (a-1), shall not exceed an amount equal to (i) the
amount of | 32 |
| the required State contribution that would have been calculated | 33 |
| under
this Section for that fiscal year if the System had not | 34 |
| received any payments
under subsection (d) of Section 7.2 of |
|
|
|
09400HB1815ham002 |
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|
| 1 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 2 |
| State's total debt service payments for that fiscal
year on the | 3 |
| bonds issued for the purposes of that Section 7.2, as | 4 |
| determined
and certified by the Comptroller, that is the same | 5 |
| as the System's portion of
the total moneys distributed under | 6 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 7 |
| Act. In determining this maximum for State fiscal years 2008 | 8 |
| through 2010, however, the amount referred to in item (i) shall | 9 |
| be increased, as a percentage of the applicable employee | 10 |
| payroll, in equal increments calculated from the sum of the | 11 |
| required State contribution for State fiscal year 2007 plus the | 12 |
| applicable portion of the State's total debt service payments | 13 |
| for fiscal year 2007 on the bonds issued for the purposes of | 14 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 15 |
| State fiscal year 2011, the
State is contributing at the rate | 16 |
| otherwise required under this Section.
| 17 |
| Amounts received by the System pursuant to Section 25 of | 18 |
| the Budget Stabilization Act in any fiscal year do not reduce | 19 |
| and do not constitute payment of any portion of the minimum | 20 |
| State contribution required under this Article in that fiscal | 21 |
| year. Such amounts shall not reduce, and shall not be included | 22 |
| in the calculation of, the required State contributions under | 23 |
| this Article in any future year until the System has reached a | 24 |
| funding ratio of at least 90%. A reference in this Article to | 25 |
| the "required State contribution" or any substantially similar | 26 |
| term does not include or apply to any amounts payable to the | 27 |
| System under Section 25 of the Budget Stabilization Act.
| 28 |
| (c) Payment of the required State contributions and of all | 29 |
| pensions,
retirement annuities, death benefits, refunds, and | 30 |
| other benefits granted
under or assumed by this System, and all | 31 |
| expenses in connection with the
administration and operation | 32 |
| thereof, are obligations of the State.
| 33 |
| If members are paid from special trust or federal funds | 34 |
| which are
administered by the employing unit, whether school |
|
|
|
09400HB1815ham002 |
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|
| 1 |
| district or other
unit, the employing unit shall pay to the | 2 |
| System from such
funds the full accruing retirement costs based | 3 |
| upon that
service, as determined by the System. Employer | 4 |
| contributions, based on
salary paid to members from federal | 5 |
| funds, may be forwarded by the distributing
agency of the State | 6 |
| of Illinois to the System prior to allocation, in an
amount | 7 |
| determined in accordance with guidelines established by such
| 8 |
| agency and the System.
| 9 |
| (d) Effective July 1, 1986, any employer of a teacher as | 10 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 11 |
| employer's normal cost
of benefits based upon the teacher's | 12 |
| service, in addition to
employee contributions, as determined | 13 |
| by the System. Such employer
contributions shall be forwarded | 14 |
| monthly in accordance with guidelines
established by the | 15 |
| System.
| 16 |
| However, with respect to benefits granted under Section | 17 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 18 |
| of Section 16-106, the
employer's contribution shall be 12% | 19 |
| (rather than 20%) of the member's
highest annual salary rate | 20 |
| for each year of creditable service granted, and
the employer | 21 |
| shall also pay the required employee contribution on behalf of
| 22 |
| the teacher. For the purposes of Sections 16-133.4 and | 23 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 24 |
| 16-106 who is serving in that capacity
while on leave of | 25 |
| absence from another employer under this Article shall not
be | 26 |
| considered an employee of the employer from which the teacher | 27 |
| is on leave.
| 28 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 29 |
| shall pay to the System an employer contribution computed as | 30 |
| follows:
| 31 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 32 |
| employer
contribution shall be equal to 0.3% of each | 33 |
| teacher's salary.
| 34 |
| (2) Beginning July 1, 1999 and thereafter, the employer
|
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| 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
| 27 |
| this Article, then the employer shall be excused from paying | 28 |
| the employer
contribution required under this subsection (e) | 29 |
| for the balance of the term
of that contract. The employer and | 30 |
| the employee organization shall jointly
certify to the System | 31 |
| the existence of the contractual requirement, in such
form as | 32 |
| the System may prescribe. This exclusion shall cease upon the
| 33 |
| termination, extension, or renewal of the contract at any time | 34 |
| after May 1,
1998.
|
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| (f) If the amount of a teacher's salary for any school year | 2 |
| used to determine final average salary exceeds the amount of | 3 |
| his or her salary with the same employer for the previous | 4 |
| school year by more than 6%, the teacher's employer shall pay | 5 |
| to the System, in addition to all other payments required under | 6 |
| this Section and in accordance with guidelines established by | 7 |
| the System, the present value of the increase in benefits | 8 |
| resulting from the portion of the increase in salary that is in | 9 |
| excess of 6%. This present value shall be computed by the | 10 |
| System on the basis of the actuarial assumptions and tables | 11 |
| used in the most recent actuarial valuation of the System that | 12 |
| is available at the time of the computation. The employer | 13 |
| contributions required under this subsection (f) shall be paid | 14 |
| in the form of a lump sum within 30 days after receipt of the | 15 |
| bill after the teacher begins receiving benefits under this | 16 |
| Article.
| 17 |
| The provisions of this subsection (f) do not apply to | 18 |
| salary increases paid to teachers under contracts or collective | 19 |
| bargaining agreements entered into, amended, or renewed before | 20 |
| the effective date of this amendatory Act of the 94th General | 21 |
| Assembly.
| 22 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 23 |
| eff. 6-1-05.)
| 24 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 25 |
| Sec. 18-131. Financing; employer contributions.
| 26 |
| (a) The State of Illinois shall make contributions to this | 27 |
| System by
appropriations of the amounts which, together with | 28 |
| the contributions of
participants, net earnings on | 29 |
| investments, and other income, will meet the
costs of | 30 |
| maintaining and administering this System on a 90% funded basis | 31 |
| in
accordance with actuarial recommendations.
| 32 |
| (b) The Board shall determine the amount of State | 33 |
| contributions
required for each fiscal year on the basis of the |
|
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| actuarial tables and other
assumptions adopted by the Board and | 2 |
| the prescribed rate of interest, using
the formula in | 3 |
| subsection (c).
| 4 |
| (c) For State fiscal years 2011 through 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
| 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.
| 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.
| 19 |
| Notwithstanding any other provision of this Article, the | 20 |
| total required State
contribution for State fiscal year 2006 is | 21 |
| $29,189,400.
| 22 |
| Notwithstanding any other provision of this Article, the | 23 |
| total required State
contribution for State fiscal year 2007 is | 24 |
| $35,236,800.
| 25 |
| For each of State fiscal years 2007
2008 through 2010, the | 26 |
| State contribution to
the System, as a percentage of the | 27 |
| applicable employee payroll, shall be
increased in equal annual | 28 |
| increments from the required State contribution for State | 29 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 30 |
| State is contributing at the rate otherwise required under this | 31 |
| 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 2007
2008 and each fiscal year thereafter, as
| 5 |
| calculated under this Section and
certified under Section | 6 |
| 18-140, shall not exceed an amount equal to (i) the
amount of | 7 |
| the required State contribution that would have been calculated | 8 |
| under
this Section for that fiscal year if the System had not | 9 |
| received any payments
under subsection (d) of Section 7.2 of | 10 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 11 |
| State's total debt service payments for that fiscal
year on the | 12 |
| bonds issued for the purposes of that Section 7.2, as | 13 |
| determined
and certified by the Comptroller, that is the same | 14 |
| as the System's portion of
the total moneys distributed under | 15 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 16 |
| Act. In determining this maximum for State fiscal years 2008 | 17 |
| through 2010, however, the amount referred to in item (i) shall | 18 |
| be increased, as a percentage of the applicable employee | 19 |
| payroll, in equal increments calculated from the sum of the | 20 |
| required State contribution for State fiscal year 2007 plus the | 21 |
| applicable portion of the State's total debt service payments | 22 |
| for fiscal year 2007 on the bonds issued for the purposes of | 23 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 24 |
| State fiscal year 2011, the
State is contributing at the rate | 25 |
| otherwise required under this Section.
| 26 |
| Amounts received by the System pursuant to Section 25 of | 27 |
| the Budget Stabilization Act in any fiscal year do not reduce | 28 |
| and do not constitute payment of any portion of the minimum | 29 |
| State contribution required under this Article in that fiscal | 30 |
| year. Such amounts shall not reduce, and shall not be included | 31 |
| in the calculation of, the required State contributions under | 32 |
| this Article in any future year until the System has reached a | 33 |
| funding ratio of at least 90%. A reference in this Article to | 34 |
| the "required State contribution" or any substantially similar |
|
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| term does not include or apply to any amounts payable to the | 2 |
| System under Section 25 of the Budget Stabilization Act.
| 3 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
| 4 |
| (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 5 |
| Sec. 18-140. To certify required State contributions and | 6 |
| submit vouchers.
| 7 |
| (a) The Board shall certify to the Governor, on or before | 8 |
| November 15 of
each year, the amount of the required State | 9 |
| contribution to the System for the
following fiscal year. The | 10 |
| certification shall include a copy of the actuarial
| 11 |
| recommendations upon which it is based.
| 12 |
| On or before May 1, 2004, the Board shall recalculate and | 13 |
| recertify to
the Governor the amount of the required State | 14 |
| contribution to the System for
State fiscal year 2005, taking | 15 |
| into account the amounts appropriated to and
received by the | 16 |
| System under subsection (d) of Section 7.2 of the General
| 17 |
| Obligation Bond Act.
| 18 |
| On or before July 1, 2005, the Board shall recalculate and | 19 |
| recertify
to the Governor the amount of the required State
| 20 |
| contribution to the System for State fiscal year 2006, taking | 21 |
| into account the changes in required State contributions made | 22 |
| by Public Act 94-4
this amendatory Act of the 94th General | 23 |
| Assembly .
| 24 |
| On or before July 1, 2006, the Board shall recalculate and | 25 |
| recertify
to the Governor the amount of the required State
| 26 |
| contribution to the System for State fiscal year 2007, taking | 27 |
| into account the changes in required State contributions made | 28 |
| by this amendatory Act of the 94th General Assembly.
| 29 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 30 |
| possible after
the 15th day of each month the Board shall | 31 |
| submit vouchers for payment of State
contributions to the | 32 |
| System, in a total monthly amount of one-twelfth of the
| 33 |
| required annual State contribution certified under subsection |
|
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| (a).
From the effective date of this amendatory Act
of the 93rd | 2 |
| General Assembly through June 30, 2004, the Board shall not
| 3 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 4 |
| of the
fiscal year 2004 certified contribution amount | 5 |
| determined
under this Section after taking into consideration | 6 |
| the transfer to the
System under subsection (c) of Section | 7 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 8 |
| the State Comptroller and Treasurer by warrants drawn
on the | 9 |
| funds appropriated to the System for that fiscal year.
| 10 |
| If in any month the amount remaining unexpended from all | 11 |
| other
appropriations to the System for the applicable fiscal | 12 |
| year (including the
appropriations to the System under Section | 13 |
| 8.12 of the State Finance Act and
Section 1 of the State | 14 |
| Pension Funds Continuing Appropriation Act) is less than
the | 15 |
| amount lawfully vouchered under this Section, the difference | 16 |
| shall be paid
from the General Revenue Fund under the | 17 |
| continuing appropriation authority
provided in Section 1.1 of | 18 |
| the State Pension Funds Continuing Appropriation
Act.
| 19 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 20 |
| eff. 6-1-05.)
| 21 |
| Section 20. The State Pension Funds Continuing | 22 |
| Appropriation Act is amended by adding Section 1.7 as follows: | 23 |
| (40 ILCS 15/1.7 new)
| 24 |
| Sec. 1.7. Appropriations from the Pension Stabilization | 25 |
| Fund. | 26 |
| (a) All of the moneys deposited from time to time into the | 27 |
| Pension Stabilization Fund are hereby appropriated, on a | 28 |
| continuing basis, to the State Comptroller for the purpose of | 29 |
| making distributions to the designated retirement systems as | 30 |
| provided in Section 25 of the Budget Stabilization Act. | 31 |
| (b) The appropriations made under this Section are in | 32 |
| addition to, and do not affect, the amounts subject to |
|
|
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| appropriation under any other Section of this Act.
| 2 |
| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.".
|
|