Full Text of HB4184 94th General Assembly
HB4184 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB4184
Introduced 11/3/2005, by Rep. Kevin A. McCarthy SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/15-155 |
from Ch. 108 1/2, par. 15-155 |
40 ILCS 5/16-158 |
from Ch. 108 1/2, par. 16-158 |
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Amends the State Universities Article of the Illinois Pension Code. Provides that, for part-time staff, provisions concerning the employer's contribution for earnings increases in excess of 6% do not apply to earnings increases as a result of the participant increasing his or her workload. Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that, for part-time staff, provisions concerning the employer's contribution for salary increases in excess of 6% do not apply to salary increases as a result of the teacher increasing his or her workload. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB4184 |
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LRB094 14923 AMC 49995 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 15-155 and 16-158 as follows:
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| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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| Sec. 15-155. Employer contributions.
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| (a) The State of Illinois shall make contributions by | 9 |
| appropriations of
amounts which, together with the other | 10 |
| employer contributions from trust,
federal, and other funds, | 11 |
| employee contributions, income from investments,
and other | 12 |
| income of this System, will be sufficient to meet the cost of
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| maintaining and administering the System on a 90% funded basis | 14 |
| in accordance
with actuarial recommendations.
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| The Board shall determine the amount of State contributions | 16 |
| required for
each fiscal year on the basis of the actuarial | 17 |
| tables and other assumptions
adopted by the Board and the | 18 |
| recommendations of the actuary, using the formula
in subsection | 19 |
| (a-1).
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| (a-1) For State fiscal years 2011 through 2045, the minimum | 21 |
| contribution
to the System to be made by the State for each | 22 |
| fiscal year shall be an amount
determined by the System to be | 23 |
| sufficient to bring the total assets of the
System up to 90% of | 24 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 26 |
| required State
contribution shall be calculated each year as a | 27 |
| level percentage of payroll
over the years remaining to and | 28 |
| including fiscal year 2045 and shall be
determined under the | 29 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 31 |
| contribution to
the System, as a percentage of the applicable | 32 |
| employee payroll, shall be
increased in equal annual increments |
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HB4184 |
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LRB094 14923 AMC 49995 b |
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| so that by State fiscal year 2011, the
State is contributing at | 2 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2006 is | 5 |
| $166,641,900.
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| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution for State fiscal year 2007 is | 8 |
| $252,064,100.
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| For each of State fiscal years 2008 through 2010, the State | 10 |
| contribution to
the System, as a percentage of the applicable | 11 |
| employee payroll, shall be
increased in equal annual increments | 12 |
| from the required State contribution for State fiscal year | 13 |
| 2007, so that by State fiscal year 2011, the
State is | 14 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 16 |
| contribution for
each fiscal year shall be the amount needed to | 17 |
| maintain the total assets of
the System at 90% of the total | 18 |
| actuarial liabilities of the System.
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| Notwithstanding any other provision of this Section, the | 20 |
| required State
contribution for State fiscal year 2005 and for | 21 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 22 |
| under this Section and
certified under Section 15-165, shall | 23 |
| not exceed an amount equal to (i) the
amount of the required | 24 |
| State contribution that would have been calculated under
this | 25 |
| Section for that fiscal year if the System had not received any | 26 |
| payments
under subsection (d) of Section 7.2 of the General | 27 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 28 |
| total debt service payments for that fiscal
year on the bonds | 29 |
| issued for the purposes of that Section 7.2, as determined
and | 30 |
| certified by the Comptroller, that is the same as the System's | 31 |
| portion of
the total moneys distributed under subsection (d) of | 32 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 33 |
| this maximum for State fiscal years 2008 through 2010, however, | 34 |
| the amount referred to in item (i) shall be increased, as a | 35 |
| percentage of the applicable employee payroll, in equal | 36 |
| increments calculated from the sum of the required State |
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LRB094 14923 AMC 49995 b |
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| contribution for State fiscal year 2007 plus the applicable | 2 |
| portion of the State's total debt service payments for fiscal | 3 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 4 |
| of the General
Obligation Bond Act, so that, by State fiscal | 5 |
| year 2011, the
State is contributing at the rate otherwise | 6 |
| required under this Section.
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| (b) If an employee is paid from trust or federal funds, the | 8 |
| employer
shall pay to the Board contributions from those funds | 9 |
| which are
sufficient to cover the accruing normal costs on | 10 |
| behalf of the employee.
However, universities having employees | 11 |
| who are compensated out of local
auxiliary funds, income funds, | 12 |
| or service enterprise funds are not required
to pay such | 13 |
| contributions on behalf of those employees. The local auxiliary
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| funds, income funds, and service enterprise funds of | 15 |
| universities shall not be
considered trust funds for the | 16 |
| purpose of this Article, but funds of alumni
associations, | 17 |
| foundations, and athletic associations which are affiliated | 18 |
| with
the universities included as employers under this Article | 19 |
| and other employers
which do not receive State appropriations | 20 |
| are considered to be trust funds for
the purpose of this | 21 |
| Article.
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| (b-1) The City of Urbana and the City of Champaign shall | 23 |
| each make
employer contributions to this System for their | 24 |
| respective firefighter
employees who participate in this | 25 |
| System pursuant to subsection (h) of Section
15-107. The rate | 26 |
| of contributions to be made by those municipalities shall
be | 27 |
| determined annually by the Board on the basis of the actuarial | 28 |
| assumptions
adopted by the Board and the recommendations of the | 29 |
| actuary, and shall be
expressed as a percentage of salary for | 30 |
| each such employee. The Board shall
certify the rate to the | 31 |
| affected municipalities as soon as may be practical.
The | 32 |
| employer contributions required under this subsection shall be | 33 |
| remitted by
the municipality to the System at the same time and | 34 |
| in the same manner as
employee contributions.
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| (c) Through State fiscal year 1995: The total employer | 36 |
| contribution shall
be apportioned among the various funds of |
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| the State and other employers,
whether trust, federal, or other | 2 |
| funds, in accordance with actuarial procedures
approved by the | 3 |
| Board. State of Illinois contributions for employers receiving
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| State appropriations for personal services shall be payable | 5 |
| from appropriations
made to the employers or to the System. The | 6 |
| contributions for Class I
community colleges covering earnings | 7 |
| other than those paid from trust and
federal funds, shall be | 8 |
| payable solely from appropriations to the Illinois
Community | 9 |
| College Board or the System for employer contributions.
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| (d) Beginning in State fiscal year 1996, the required State | 11 |
| contributions
to the System shall be appropriated directly to | 12 |
| the System and shall be payable
through vouchers issued in | 13 |
| accordance with subsection (c) of Section 15-165, except as | 14 |
| provided in subsection (g).
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| (e) The State Comptroller shall draw warrants payable to | 16 |
| the System upon
proper certification by the System or by the | 17 |
| employer in accordance with the
appropriation laws and this | 18 |
| Code.
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| (f) Normal costs under this Section means liability for
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| pensions and other benefits which accrues to the System because | 21 |
| of the
credits earned for service rendered by the participants | 22 |
| during the
fiscal year and expenses of administering the | 23 |
| System, but shall not
include the principal of or any | 24 |
| redemption premium or interest on any bonds
issued by the Board | 25 |
| or any expenses incurred or deposits required in
connection | 26 |
| therewith.
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| (g) If the amount of a participant's earnings for any | 28 |
| academic year used to determine the final rate of earnings | 29 |
| exceeds the amount of his or her earnings with the same | 30 |
| employer for the previous academic year by more than 6%, the | 31 |
| participant's employer shall pay to the System, in addition to | 32 |
| all other payments required under this Section and in | 33 |
| accordance with guidelines established by the System, the | 34 |
| present value of the increase in benefits resulting from the | 35 |
| portion of the increase in earnings that is in excess of 6%. | 36 |
| This present value shall be computed by the System on the basis |
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| of the actuarial assumptions and tables used in the most recent | 2 |
| actuarial valuation of the System that is available at the time | 3 |
| of the computation. The employer contributions required under | 4 |
| this subsection (g) shall be paid in the form of a lump sum | 5 |
| within 30 days after receipt of the bill after the participant | 6 |
| begins receiving benefits under this Article.
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| The provisions of this subsection (g) do not apply to any | 8 |
| of the following:
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| (1) Earnings
earnings increases paid to participants | 10 |
| under contracts or collective bargaining agreements | 11 |
| entered into, amended, or renewed before the effective date | 12 |
| of this amendatory Act of the 94th General Assembly.
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| (2) For part-time staff, as defined by a collective | 14 |
| bargaining agreement, earnings increases as a result of the | 15 |
| participant increasing his or her workload.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
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| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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| Sec. 16-158. Contributions by State and other employing | 19 |
| units.
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| (a) The State shall make contributions to the System by | 21 |
| means of
appropriations from the Common School Fund and other | 22 |
| State funds of amounts
which, together with other employer | 23 |
| contributions, employee contributions,
investment income, and | 24 |
| other income, will be sufficient to meet the cost of
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| maintaining and administering the System on a 90% funded basis | 26 |
| in accordance
with actuarial recommendations.
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| The Board shall determine the amount of State contributions | 28 |
| required for
each fiscal year on the basis of the actuarial | 29 |
| tables and other assumptions
adopted by the Board and the | 30 |
| recommendations of the actuary, using the formula
in subsection | 31 |
| (b-3).
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| (a-1) Annually, on or before November 15, the Board shall | 33 |
| certify to the
Governor the amount of the required State | 34 |
| contribution for the coming fiscal
year. The certification | 35 |
| shall include a copy of the actuarial recommendations
upon |
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LRB094 14923 AMC 49995 b |
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| which it is based.
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| On or before May 1, 2004, the Board shall recalculate and | 3 |
| recertify to
the Governor the amount of the required State | 4 |
| contribution to the System for
State fiscal year 2005, taking | 5 |
| into account the amounts appropriated to and
received by the | 6 |
| System under subsection (d) of Section 7.2 of the General
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| Obligation Bond Act.
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| On or before July 1, 2005, the Board shall recalculate and | 9 |
| recertify
to the Governor the amount of the required State
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| contribution to the System for State fiscal year 2006, taking | 11 |
| into account the changes in required State contributions made | 12 |
| by this amendatory Act of the 94th General Assembly.
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| (b) Through State fiscal year 1995, the State contributions | 14 |
| shall be
paid to the System in accordance with Section 18-7 of | 15 |
| the School Code.
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| (b-1) Beginning in State fiscal year 1996, on the 15th day | 17 |
| of each month,
or as soon thereafter as may be practicable, the | 18 |
| Board shall submit vouchers
for payment of State contributions | 19 |
| to the System, in a total monthly amount of
one-twelfth of the | 20 |
| required annual State contribution certified under
subsection | 21 |
| (a-1).
From the
effective date of this amendatory Act of the | 22 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 23 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 24 |
| excess of the fiscal year 2004
certified contribution amount | 25 |
| determined under this Section
after taking into consideration | 26 |
| the transfer to the System
under subsection (a) of Section | 27 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 28 |
| the State Comptroller and
Treasurer by warrants drawn on the | 29 |
| funds appropriated to the System for that
fiscal year.
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| If in any month the amount remaining unexpended from all | 31 |
| other appropriations
to the System for the applicable fiscal | 32 |
| year (including the appropriations to
the System under Section | 33 |
| 8.12 of the State Finance Act and Section 1 of the
State | 34 |
| Pension Funds Continuing Appropriation Act) is less than the | 35 |
| amount
lawfully vouchered under this subsection, the | 36 |
| difference shall be paid from the
Common School Fund under the |
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LRB094 14923 AMC 49995 b |
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| continuing appropriation authority provided in
Section 1.1 of | 2 |
| the State Pension Funds Continuing Appropriation Act.
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| (b-2) Allocations from the Common School Fund apportioned | 4 |
| to school
districts not coming under this System shall not be | 5 |
| diminished or affected by
the provisions of this Article.
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| (b-3) For State fiscal years 2011 through 2045, the minimum | 7 |
| contribution
to the System to be made by the State for each | 8 |
| fiscal year shall be an amount
determined by the System to be | 9 |
| sufficient to bring the total assets of the
System up to 90% of | 10 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 12 |
| required State
contribution shall be calculated each year as a | 13 |
| level percentage of payroll
over the years remaining to and | 14 |
| including fiscal year 2045 and shall be
determined under the | 15 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 17 |
| contribution to the
System, as a percentage of the applicable | 18 |
| employee payroll, shall be increased
in equal annual increments | 19 |
| so that by State fiscal year 2011, the State is
contributing at | 20 |
| the rate required under this Section; except that in the
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| following specified State fiscal years, the State contribution | 22 |
| to the System
shall not be less than the following indicated | 23 |
| percentages of the applicable
employee payroll, even if the | 24 |
| indicated percentage will produce a State
contribution in | 25 |
| excess of the amount otherwise required under this subsection
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| and subsection (a), and notwithstanding any contrary | 27 |
| certification made under
subsection (a-1) before the effective | 28 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 29 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 30 |
| 2003; and
13.56% in FY 2004.
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| Notwithstanding any other provision of this Article, the | 32 |
| total required State
contribution for State fiscal year 2006 is | 33 |
| $534,627,700.
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| Notwithstanding any other provision of this Article, the | 35 |
| total required State
contribution for State fiscal year 2007 is | 36 |
| $738,014,500.
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HB4184 |
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LRB094 14923 AMC 49995 b |
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| For each of State fiscal years 2008 through 2010, the State | 2 |
| contribution to
the System, as a percentage of the applicable | 3 |
| employee payroll, shall be
increased in equal annual increments | 4 |
| from the required State contribution for State fiscal year | 5 |
| 2007, so that by State fiscal year 2011, the
State is | 6 |
| contributing at the rate otherwise required under this Section.
| 7 |
| Beginning in State fiscal year 2046, the minimum State | 8 |
| contribution for
each fiscal year shall be the amount needed to | 9 |
| maintain the total assets of
the System at 90% of the total | 10 |
| actuarial liabilities of the System.
| 11 |
| Notwithstanding any other provision of this Section, the | 12 |
| required State
contribution for State fiscal year 2005 and for | 13 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 14 |
| under this Section and
certified under subsection (a-1), shall | 15 |
| not exceed an amount equal to (i) the
amount of the required | 16 |
| State contribution that would have been calculated under
this | 17 |
| Section for that fiscal year if the System had not received any | 18 |
| payments
under subsection (d) of Section 7.2 of the General | 19 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 20 |
| total debt service payments for that fiscal
year on the bonds | 21 |
| issued for the purposes of that Section 7.2, as determined
and | 22 |
| certified by the Comptroller, that is the same as the System's | 23 |
| portion of
the total moneys distributed under subsection (d) of | 24 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 25 |
| this maximum for State fiscal years 2008 through 2010, however, | 26 |
| the amount referred to in item (i) shall be increased, as a | 27 |
| percentage of the applicable employee payroll, in equal | 28 |
| increments calculated from the sum of the required State | 29 |
| contribution for State fiscal year 2007 plus the applicable | 30 |
| portion of the State's total debt service payments for fiscal | 31 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 32 |
| of the General
Obligation Bond Act, so that, by State fiscal | 33 |
| year 2011, the
State is contributing at the rate otherwise | 34 |
| required under this Section.
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| (c) Payment of the required State contributions and of all | 36 |
| pensions,
retirement annuities, death benefits, refunds, and |
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HB4184 |
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LRB094 14923 AMC 49995 b |
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| other benefits granted
under or assumed by this System, and all | 2 |
| expenses in connection with the
administration and operation | 3 |
| thereof, are obligations of the State.
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| If members are paid from special trust or federal funds | 5 |
| which are
administered by the employing unit, whether school | 6 |
| district or other
unit, the employing unit shall pay to the | 7 |
| System from such
funds the full accruing retirement costs based | 8 |
| upon that
service, as determined by the System. Employer | 9 |
| contributions, based on
salary paid to members from federal | 10 |
| funds, may be forwarded by the distributing
agency of the State | 11 |
| of Illinois to the System prior to allocation, in an
amount | 12 |
| determined in accordance with guidelines established by such
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| agency and the System.
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| (d) Effective July 1, 1986, any employer of a teacher as | 15 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 16 |
| employer's normal cost
of benefits based upon the teacher's | 17 |
| service, in addition to
employee contributions, as determined | 18 |
| by the System. Such employer
contributions shall be forwarded | 19 |
| monthly in accordance with guidelines
established by the | 20 |
| System.
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| However, with respect to benefits granted under Section | 22 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 23 |
| of Section 16-106, the
employer's contribution shall be 12% | 24 |
| (rather than 20%) of the member's
highest annual salary rate | 25 |
| for each year of creditable service granted, and
the employer | 26 |
| shall also pay the required employee contribution on behalf of
| 27 |
| the teacher. For the purposes of Sections 16-133.4 and | 28 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 29 |
| 16-106 who is serving in that capacity
while on leave of | 30 |
| absence from another employer under this Article shall not
be | 31 |
| considered an employee of the employer from which the teacher | 32 |
| is on leave.
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| (e) Beginning July 1, 1998, every employer of a teacher
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| shall pay to the System an employer contribution computed as | 35 |
| follows:
| 36 |
| (1) Beginning July 1, 1998 through June 30, 1999, the |
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HB4184 |
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LRB094 14923 AMC 49995 b |
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| employer
contribution shall be equal to 0.3% of each | 2 |
| teacher's salary.
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| (2) Beginning July 1, 1999 and thereafter, the employer
| 4 |
| contribution shall be equal to 0.58% of each teacher's | 5 |
| salary.
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| The school district or other employing unit may pay these | 7 |
| employer
contributions out of any source of funding available | 8 |
| for that purpose and
shall forward the contributions to the | 9 |
| System on the schedule established
for the payment of member | 10 |
| contributions.
| 11 |
| These employer contributions are intended to offset a | 12 |
| portion of the cost
to the System of the increases in | 13 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 14 |
| Each employer of teachers is entitled to a credit against | 15 |
| the contributions
required under this subsection (e) with | 16 |
| respect to salaries paid to teachers
for the period January 1, | 17 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 18 |
| employer under subsection (a-5) of Section 6.6 of the State | 19 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 20 |
| paid to teachers for that
period.
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| The additional 1% employee contribution required under | 22 |
| Section 16-152 by
this amendatory Act of 1998 is the | 23 |
| responsibility of the teacher and not the
teacher's employer, | 24 |
| unless the employer agrees, through collective bargaining
or | 25 |
| otherwise, to make the contribution on behalf of the teacher.
| 26 |
| If an employer is required by a contract in effect on May | 27 |
| 1, 1998 between the
employer and an employee organization to | 28 |
| pay, on behalf of all its full-time
employees
covered by this | 29 |
| Article, all mandatory employee contributions required under
| 30 |
| this Article, then the employer shall be excused from paying | 31 |
| the employer
contribution required under this subsection (e) | 32 |
| for the balance of the term
of that contract. The employer and | 33 |
| the employee organization shall jointly
certify to the System | 34 |
| the existence of the contractual requirement, in such
form as | 35 |
| the System may prescribe. This exclusion shall cease upon the
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| termination, extension, or renewal of the contract at any time |
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HB4184 |
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| after May 1,
1998.
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| (f) If the amount of a teacher's salary for any school year | 3 |
| used to determine final average salary exceeds the amount of | 4 |
| his or her salary with the same employer for the previous | 5 |
| school year by more than 6%, the teacher's employer shall pay | 6 |
| to the System, in addition to all other payments required under | 7 |
| this Section and in accordance with guidelines established by | 8 |
| the System, the present value of the increase in benefits | 9 |
| resulting from the portion of the increase in salary that is in | 10 |
| excess of 6%. This present value shall be computed by the | 11 |
| System on the basis of the actuarial assumptions and tables | 12 |
| used in the most recent actuarial valuation of the System that | 13 |
| is available at the time of the computation. The employer | 14 |
| contributions required under this subsection (f) shall be paid | 15 |
| in the form of a lump sum within 30 days after receipt of the | 16 |
| bill after the teacher begins receiving benefits under this | 17 |
| Article.
| 18 |
| The provisions of this subsection (f) do not apply to any | 19 |
| of the following:
| 20 |
| (1) Salary
salary increases paid to teachers under | 21 |
| contracts or collective bargaining agreements entered | 22 |
| into, amended, or renewed before the effective date of this | 23 |
| amendatory Act of the 94th General Assembly.
| 24 |
| (2) For part-time staff, as defined by a collective | 25 |
| bargaining agreement, earnings increases as a result of the | 26 |
| teacher increasing his or her workload.
| 27 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 28 |
| eff. 6-1-05.)
| 29 |
| Section 99. Effective date. This Act takes effect upon | 30 |
| becoming law.
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