Full Text of SB1858 96th General Assembly
SB1858enr 96TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. If and only if Senate Bill 3514 (as amended by | 5 | | House Amendment Nos. 3, 4, and 5) becomes law, the Illinois | 6 | | Pension Code is amended by changing Sections 2-124, 2-134, | 7 | | 14-131, 14-135.08, 15-155, 15-165, 16-158, 18-131, and 18-140 | 8 | | as follows:
| 9 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 10 | | Sec. 2-124. Contributions by State.
| 11 | | (a) The State shall make contributions to the System by
| 12 | | appropriations of amounts which, together with the | 13 | | contributions of
participants, interest earned on investments, | 14 | | and other income
will meet the cost of maintaining and | 15 | | administering the System on a 90%
funded basis in accordance | 16 | | with actuarial recommendations.
| 17 | | (b) The Board shall determine the amount of State
| 18 | | contributions required for each fiscal year on the basis of the
| 19 | | actuarial tables and other assumptions adopted by the Board and | 20 | | the
prescribed rate of interest, using the formula in | 21 | | subsection (c).
| 22 | | (c) For State fiscal years 2012 through 2045, the minimum | 23 | | contribution
to the System to be made by the State for each |
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| 1 | | fiscal year shall be an amount
determined by the System to be | 2 | | sufficient to bring the total assets of the
System up to 90% of | 3 | | the total actuarial liabilities of the System by the end of
| 4 | | State fiscal year 2045. In making these determinations, the | 5 | | required State
contribution shall be calculated each year as a | 6 | | level percentage of payroll
over the years remaining to and | 7 | | including fiscal year 2045 and shall be
determined under the | 8 | | projected unit credit actuarial cost method.
| 9 | | For State fiscal years 1996 through 2005, the State | 10 | | contribution to
the System, as a percentage of the applicable | 11 | | employee payroll, shall be
increased in equal annual increments | 12 | | so that by State fiscal year 2011, the
State is contributing at | 13 | | the rate required under this Section.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State
contribution for State fiscal year 2006 is | 16 | | $4,157,000.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State
contribution for State fiscal year 2007 is | 19 | | $5,220,300.
| 20 | | For each of State fiscal years 2008 through 2009, the State | 21 | | contribution to
the System, as a percentage of the applicable | 22 | | employee payroll, shall be
increased in equal annual increments | 23 | | from the required State contribution for State fiscal year | 24 | | 2007, so that by State fiscal year 2011, the
State is | 25 | | contributing at the rate otherwise required under this Section.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State contribution for State fiscal year 2010 is | 2 | | $10,454,000 and shall be made from the proceeds of bonds sold | 3 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 4 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 5 | | expenses determined by the System's share of total bond | 6 | | proceeds, (ii) any amounts received from the General Revenue | 7 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 8 | | proceeds due to the issuance of discounted bonds, if | 9 | | applicable. | 10 | | Notwithstanding any other provision of this Article, the
| 11 | | total required State contribution for State fiscal year 2011 is
| 12 | | the amount recertified by the System on or before April 1, 2011 | 13 | | June 15, 2010 pursuant to Section 2-134 and shall be made from | 14 | | the proceeds of bonds sold
in fiscal year 2011 pursuant to | 15 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 16 | | pro rata share of bond sale
expenses determined by the System's | 17 | | share of total bond
proceeds, (ii) any amounts received from | 18 | | the General Revenue
Fund in fiscal year 2011, and (iii) any | 19 | | reduction in bond
proceeds due to the issuance of discounted | 20 | | bonds, if
applicable. | 21 | | Beginning in State fiscal year 2046, the minimum State | 22 | | contribution for
each fiscal year shall be the amount needed to | 23 | | maintain the total assets of
the System at 90% of the total | 24 | | actuarial liabilities of the System.
| 25 | | Amounts received by the System pursuant to Section 25 of | 26 | | the Budget Stabilization Act or Section 8.12 of the State |
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| 1 | | Finance Act in any fiscal year do not reduce and do not | 2 | | constitute payment of any portion of the minimum State | 3 | | contribution required under this Article in that fiscal year. | 4 | | Such amounts shall not reduce, and shall not be included in the | 5 | | calculation of, the required State contributions under this | 6 | | Article in any future year until the System has reached a | 7 | | funding ratio of at least 90%. A reference in this Article to | 8 | | the "required State contribution" or any substantially similar | 9 | | term does not include or apply to any amounts payable to the | 10 | | System under Section 25 of the Budget Stabilization Act.
| 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 Section 2-134, shall not | 15 | | exceed an amount equal to (i) the
amount of the required State | 16 | | contribution that would have been calculated under
this Section | 17 | | 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 |
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| 1 | | percentage of the applicable employee payroll, in equal | 2 | | increments calculated from the sum of the required State | 3 | | contribution for State fiscal year 2007 plus the applicable | 4 | | portion of the State's total debt service payments for fiscal | 5 | | year 2007 on the bonds issued for the purposes of Section 7.2 | 6 | | of the General
Obligation Bond Act, so that, by State fiscal | 7 | | year 2011, the
State is contributing at the rate otherwise | 8 | | required under this Section.
| 9 | | (d) For purposes of determining the required State | 10 | | contribution to the System, the value of the System's assets | 11 | | shall be equal to the actuarial value of the System's assets, | 12 | | which shall be calculated as follows: | 13 | | As of June 30, 2008, the actuarial value of the System's | 14 | | assets shall be equal to the market value of the assets as of | 15 | | that date. In determining the actuarial value of the System's | 16 | | assets for fiscal years after June 30, 2008, any actuarial | 17 | | gains or losses from investment return incurred in a fiscal | 18 | | year shall be recognized in equal annual amounts over the | 19 | | 5-year period following that fiscal year. | 20 | | (e) For purposes of determining the required State | 21 | | contribution to the system for a particular year, the actuarial | 22 | | value of assets shall be assumed to earn a rate of return equal | 23 | | to the system's actuarially assumed rate of return. | 24 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | 25 | | 09600SB3514ham003.)
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| 1 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 2 | | Sec. 2-134. To certify required State contributions and | 3 | | submit vouchers.
| 4 | | (a) The Board shall certify to the Governor on or before | 5 | | December 15 of each
year the amount of the required State | 6 | | contribution to the System for the next
fiscal year. The | 7 | | certification shall include a copy of the actuarial
| 8 | | recommendations upon which it is based.
| 9 | | On or before May 1, 2004, the Board shall recalculate and | 10 | | recertify to
the Governor the amount of the required State | 11 | | contribution to the System for
State fiscal year 2005, taking | 12 | | into account the amounts appropriated to and
received by the | 13 | | System under subsection (d) of Section 7.2 of the General
| 14 | | Obligation Bond Act.
| 15 | | On or before July 1, 2005, the Board shall recalculate and | 16 | | recertify
to the Governor the amount of the required State
| 17 | | contribution to the System for State fiscal year 2006, taking | 18 | | into account the changes in required State contributions made | 19 | | by this amendatory Act of the 94th General Assembly.
| 20 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 21 | | recalculate and recertify to the Governor the amount of the | 22 | | required State contribution to the System for State fiscal year | 23 | | 2011, applying the changes made by Public Act 96-889 to the | 24 | | System's assets and liabilities as of June 30, 2009 as though | 25 | | Public Act 96-889 was approved on that date. | 26 | | (b) Beginning in State fiscal year 1996, on or as soon as |
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| 1 | | possible after the
15th day of each month the Board shall | 2 | | submit vouchers for payment of State
contributions to the | 3 | | System, in a total monthly amount of one-twelfth of the
| 4 | | required annual State contribution certified under subsection | 5 | | (a).
From the effective date of this amendatory Act
of the 93rd | 6 | | General Assembly through June 30, 2004, the Board shall not
| 7 | | submit vouchers for the remainder of fiscal year 2004 in excess | 8 | | of the
fiscal year 2004 certified contribution amount | 9 | | determined
under this Section after taking into consideration | 10 | | the transfer to the
System under subsection (d) of Section | 11 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 12 | | the State Comptroller and Treasurer by warrants drawn
on the | 13 | | funds appropriated to the System for that fiscal year. If in | 14 | | any month
the amount remaining unexpended from all other | 15 | | appropriations to the System for
the applicable fiscal year | 16 | | (including the appropriations to the System under
Section 8.12 | 17 | | of the State Finance Act and Section 1 of the State Pension | 18 | | Funds
Continuing Appropriation Act) is less than the amount | 19 | | lawfully vouchered under
this Section, the difference shall be | 20 | | paid from the General Revenue Fund under
the continuing | 21 | | appropriation authority provided in Section 1.1 of the State
| 22 | | Pension Funds Continuing Appropriation Act.
| 23 | | (c) The full amount of any annual appropriation for the | 24 | | System for
State fiscal year 1995 shall be transferred and made | 25 | | available to the System
at the beginning of that fiscal year at | 26 | | the request of the Board.
Any excess funds remaining at the end |
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| 1 | | of any fiscal year from appropriations
shall be retained by the | 2 | | System as a general reserve to meet the System's
accrued | 3 | | liabilities.
| 4 | | (Source: P.A. 94-4, eff. 6-1-05; 94-536, eff. 8-10-05; 95-331, | 5 | | eff. 8-21-07; 09600SB3514ham003.)
| 6 | | (40 ILCS 5/14-131)
| 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, |
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| 1 | | based on the total required State
contribution for that fiscal | 2 | | year (less the amount received by the System from
| 3 | | appropriations under Section 8.12 of the State Finance Act and | 4 | | Section 1 of the
State Pension Funds Continuing Appropriation | 5 | | Act, if any, for the fiscal year
ending on the June 30 | 6 | | immediately preceding the applicable November 15
certification | 7 | | deadline), the estimated payroll (including all forms of
| 8 | | compensation) for personal services rendered by eligible | 9 | | employees, and the
recommendations of the actuary.
| 10 | | For the purposes of this Section and Section 14.1 of the | 11 | | State Finance Act,
the term "eligible employees" includes | 12 | | employees who participate in the System,
persons who may elect | 13 | | to participate in the System but have not so elected,
persons | 14 | | who are serving a qualifying period that is required for | 15 | | participation,
and annuitants employed by a department as | 16 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 17 | | (c) Contributions shall be made by the several departments | 18 | | for each pay
period by warrants drawn by the State Comptroller | 19 | | against their respective
funds or appropriations based upon | 20 | | vouchers stating the amount to be so
contributed. These amounts | 21 | | shall be based on the full rate certified by the
Board under | 22 | | Section 14-135.08 for that fiscal year.
From the effective date | 23 | | of this amendatory Act of the 93rd General
Assembly through the | 24 | | payment of the final payroll from fiscal year 2004
| 25 | | appropriations, the several departments shall not make | 26 | | contributions
for the remainder of fiscal year 2004 but shall |
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| 1 | | instead make payments
as required under subsection (a-1) of | 2 | | Section 14.1 of the State Finance Act.
The several departments | 3 | | shall resume those contributions at the commencement of
fiscal | 4 | | year 2005.
| 5 | | (c-1) Notwithstanding subsection (c) of this Section, for | 6 | | fiscal year 2010 only, contributions by the several departments | 7 | | are not required to be made for General Revenue Funds payrolls | 8 | | processed by the Comptroller. Payrolls paid by the several | 9 | | departments from all other State funds must continue to be | 10 | | processed pursuant to subsection (c) of this Section. | 11 | | (c-2) For State fiscal year 2010 only, on or as soon as | 12 | | possible after the 15th day of each month the Board shall | 13 | | submit vouchers for payment of State contributions to the | 14 | | System, in a total monthly amount of one-twelfth of the fiscal | 15 | | year 2010 General Revenue Fund appropriation to the System. | 16 | | (d) If an employee is paid from trust funds or federal | 17 | | funds, the
department or other employer shall pay employer | 18 | | contributions from those funds
to the System at the certified | 19 | | rate, unless the terms of the trust or the
federal-State | 20 | | agreement preclude the use of the funds for that purpose, in
| 21 | | which case the required employer contributions shall be paid by | 22 | | the State.
From the effective date of this amendatory
Act of | 23 | | the 93rd General Assembly through the payment of the final
| 24 | | payroll from fiscal year 2004 appropriations, the department or | 25 | | other
employer shall not pay contributions for the remainder of | 26 | | fiscal year
2004 but shall instead make payments as required |
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| 1 | | under subsection (a-1) of
Section 14.1 of the State Finance | 2 | | Act. The department or other employer shall
resume payment of
| 3 | | contributions at the commencement of fiscal year 2005.
| 4 | | (e) For State fiscal years 2012 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; except that
(i) for State | 19 | | fiscal year 1998, for all purposes of this Code and any other
| 20 | | law of this State, the certified percentage of the applicable | 21 | | employee payroll
shall be 5.052% for employees earning eligible | 22 | | creditable service under Section
14-110 and 6.500% for all | 23 | | other employees, notwithstanding any contrary
certification | 24 | | made under Section 14-135.08 before the effective date of this
| 25 | | amendatory Act of 1997, and (ii)
in the following specified | 26 | | State fiscal years, the State contribution to
the System shall |
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| 1 | | not be less than the following indicated percentages of the
| 2 | | applicable employee payroll, even if the indicated percentage | 3 | | will produce a
State contribution in excess of the amount | 4 | | otherwise required under this
subsection and subsection (a):
| 5 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 6 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution to the System for State | 9 | | fiscal year 2006 is $203,783,900.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution to the System for State | 12 | | fiscal year 2007 is $344,164,400.
| 13 | | For each of State fiscal years 2008 through 2009, the State | 14 | | contribution to
the System, as a percentage of the applicable | 15 | | employee payroll, shall be
increased in equal annual increments | 16 | | from the required State contribution for State fiscal year | 17 | | 2007, so that by State fiscal year 2011, the
State is | 18 | | contributing at the rate otherwise required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State General Revenue Fund contribution for | 21 | | State fiscal year 2010 is $723,703,100 and shall be made from | 22 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 23 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 24 | | pro rata share of bond sale expenses determined by the System's | 25 | | share of total bond proceeds, (ii) any amounts received from | 26 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
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| 1 | | reduction in bond proceeds due to the issuance of discounted | 2 | | bonds, if applicable. | 3 | | Notwithstanding any other provision of this Article, the
| 4 | | total required State General Revenue Fund contribution for
| 5 | | State fiscal year 2011 is the amount recertified by the System | 6 | | on or before April 1, 2011 June 15, 2010 pursuant to Section | 7 | | 14-135.08 and shall be made from
the proceeds of bonds sold in | 8 | | fiscal year 2011 pursuant to
Section 7.2 of the General | 9 | | Obligation Bond Act, less (i) the
pro rata share of bond sale | 10 | | expenses determined by the System's
share of total bond | 11 | | proceeds, (ii) any amounts received from
the General Revenue | 12 | | Fund in fiscal year 2011, and (iii) any
reduction in bond | 13 | | proceeds due to the issuance of discounted
bonds, if | 14 | | applicable. | 15 | | 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.
| 19 | | Amounts received by the System pursuant to Section 25 of | 20 | | the Budget Stabilization Act or Section 8.12 of the State | 21 | | Finance Act in any fiscal year do not reduce and do not | 22 | | constitute payment of any portion of the minimum State | 23 | | contribution required under this Article in that fiscal year. | 24 | | Such amounts shall not reduce, and shall not be included in the | 25 | | calculation of, the required State contributions under this | 26 | | Article in any future year until the System has reached a |
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| 1 | | funding ratio of at least 90%. A reference in this Article to | 2 | | the "required State contribution" or any substantially similar | 3 | | term does not include or apply to any amounts payable to the | 4 | | System under Section 25 of the Budget Stabilization Act.
| 5 | | Notwithstanding any other provision of this Section, the | 6 | | required State
contribution for State fiscal year 2005 and for | 7 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 8 | | under this Section and
certified under Section 14-135.08, shall | 9 | | not exceed an amount equal to (i) the
amount of the required | 10 | | State contribution that would have been calculated under
this | 11 | | Section for that fiscal year if the System had not received any | 12 | | payments
under subsection (d) of Section 7.2 of the General | 13 | | Obligation Bond Act, minus
(ii) the portion of the State's | 14 | | total debt service payments for that fiscal
year on the bonds | 15 | | issued for the purposes of that Section 7.2, as determined
and | 16 | | certified by the Comptroller, that is the same as the System's | 17 | | portion of
the total moneys distributed under subsection (d) of | 18 | | Section 7.2 of the General
Obligation Bond Act. In determining | 19 | | this maximum for State fiscal years 2008 through 2010, however, | 20 | | the amount referred to in item (i) shall be increased, as a | 21 | | percentage of the applicable employee payroll, in equal | 22 | | increments calculated from the sum of the required State | 23 | | contribution for State fiscal year 2007 plus the applicable | 24 | | portion of the State's total debt service payments for fiscal | 25 | | year 2007 on the bonds issued for the purposes of Section 7.2 | 26 | | of the General
Obligation Bond Act, so that, by State fiscal |
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| 1 | | year 2011, the
State is contributing at the rate otherwise | 2 | | required under this Section.
| 3 | | (f) After the submission of all payments for eligible | 4 | | employees
from personal services line items in fiscal year 2004 | 5 | | have been made,
the Comptroller shall provide to the System a | 6 | | certification of the sum
of all fiscal year 2004 expenditures | 7 | | for personal services that would
have been covered by payments | 8 | | to the System under this Section if the
provisions of this | 9 | | amendatory Act of the 93rd General Assembly had not been
| 10 | | enacted. Upon
receipt of the certification, the System shall | 11 | | determine the amount
due to the System based on the full rate | 12 | | certified by the Board under
Section 14-135.08 for fiscal year | 13 | | 2004 in order to meet the State's
obligation under this | 14 | | Section. The System shall compare this amount
due to the amount | 15 | | received by the System in fiscal year 2004 through
payments | 16 | | under this Section and under Section 6z-61 of the State Finance | 17 | | Act.
If the amount
due is more than the amount received, the | 18 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 19 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 20 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 21 | | Continuing Appropriation Act. If the amount due is less than | 22 | | the
amount received, the
difference shall be termed the "Fiscal | 23 | | Year 2004 Overpayment" for purposes of
this Section, and the | 24 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 25 | | the Pension Contribution Fund as soon as practicable
after the | 26 | | certification.
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| 1 | | (g) For purposes of determining the required State | 2 | | contribution to the System, the value of the System's assets | 3 | | shall be equal to the actuarial value of the System's assets, | 4 | | which shall be calculated as follows: | 5 | | As of June 30, 2008, the actuarial value of the System's | 6 | | assets shall be equal to the market value of the assets as of | 7 | | that date. In determining the actuarial value of the System's | 8 | | assets for fiscal years after June 30, 2008, any actuarial | 9 | | gains or losses from investment return incurred in a fiscal | 10 | | year shall be recognized in equal annual amounts over the | 11 | | 5-year period following that fiscal year. | 12 | | (h) For purposes of determining the required State | 13 | | contribution to the System for a particular year, the actuarial | 14 | | value of assets shall be assumed to earn a rate of return equal | 15 | | to the System's actuarially assumed rate of return. | 16 | | (i) After the submission of all payments for eligible | 17 | | employees from personal services line items paid from the | 18 | | General Revenue Fund in fiscal year 2010 have been made, the | 19 | | Comptroller shall provide to the System a certification of the | 20 | | sum of all fiscal year 2010 expenditures for personal services | 21 | | that would have been covered by payments to the System under | 22 | | this Section if the provisions of this amendatory Act of the | 23 | | 96th General Assembly had not been enacted. Upon receipt of the | 24 | | certification, the System shall determine the amount due to the | 25 | | System based on the full rate certified by the Board under | 26 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
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| 1 | | State's obligation under this Section. The System shall compare | 2 | | this amount due to the amount received by the System in fiscal | 3 | | year 2010 through payments under this Section. If the amount | 4 | | due is more than the amount received, the difference shall be | 5 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 6 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 7 | | under Section 1.2 of the State Pension Funds Continuing | 8 | | Appropriation Act. If the amount due is less than the amount | 9 | | received, the difference shall be termed the "Fiscal Year 2010 | 10 | | Overpayment" for purposes of this Section, and the Fiscal Year | 11 | | 2010 Overpayment shall be repaid by the System to the General | 12 | | Revenue Fund as soon as practicable after the certification. | 13 | | (j) After the submission of all payments for eligible | 14 | | employees from personal services line items paid from the | 15 | | General Revenue Fund in fiscal year 2011 have been made, the | 16 | | Comptroller shall provide to the System a certification of the | 17 | | sum of all fiscal year 2011 expenditures for personal services | 18 | | that would have been covered by payments to the System under | 19 | | this Section if the provisions of this amendatory Act of the | 20 | | 96th General Assembly had not been enacted. Upon receipt of the | 21 | | certification, the System shall determine the amount due to the | 22 | | System based on the full rate certified by the Board under | 23 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 24 | | State's obligation under this Section. The System shall compare | 25 | | this amount due to the amount received by the System in fiscal | 26 | | year 2011 through payments under this Section. If the amount |
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| 1 | | due is more than the amount received, the difference shall be | 2 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 3 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 4 | | under Section 1.2 of the State Pension Funds Continuing | 5 | | Appropriation Act. If the amount due is less than the amount | 6 | | received, the difference shall be termed the "Fiscal Year 2011 | 7 | | Overpayment" for purposes of this Section, and the Fiscal Year | 8 | | 2011 Overpayment shall be repaid by the System to the General | 9 | | Revenue Fund as soon as practicable after the certification. | 10 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45, | 11 | | eff. 7-15-09; 09600SB3514ham003; 09600SB3514ham005.)
| 12 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 13 | | Sec. 14-135.08. To certify required State contributions. | 14 | | (a)
To certify to the Governor and to each department, on | 15 | | or before
November 15 of each year, the required rate for State | 16 | | contributions to the
System for the next State fiscal year, as | 17 | | determined under subsection (b) of
Section 14-131. The | 18 | | certification to the Governor shall include a copy of the
| 19 | | actuarial recommendations upon which the rate is based.
| 20 | | (b) The certification shall include an additional amount | 21 | | necessary to pay all principal of and interest on those general | 22 | | obligation bonds due the next fiscal year authorized by Section | 23 | | 7.2(a) of the General Obligation Bond Act and issued to provide | 24 | | the proceeds deposited by the State with the System in July | 25 | | 2003, representing deposits other than amounts reserved under |
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| 1 | | Section 7.2(c) of the General Obligation Bond Act. For State | 2 | | fiscal year 2005, the Board shall make a supplemental | 3 | | certification of the additional amount necessary to pay all | 4 | | principal of and interest on those general obligation bonds due | 5 | | in State fiscal years 2004 and 2005 authorized by Section | 6 | | 7.2(a) of the General Obligation Bond Act and issued to provide | 7 | | the proceeds deposited by the State with the System in July | 8 | | 2003, representing deposits other than amounts reserved under | 9 | | Section 7.2(c) of the General Obligation Bond Act, as soon as | 10 | | practical after the effective date of this amendatory Act of | 11 | | the 93rd General Assembly.
| 12 | | On or before May 1, 2004, the Board shall recalculate and | 13 | | recertify
to the Governor and to each department the amount of | 14 | | the required State
contribution to the System and the required | 15 | | rates for State contributions
to the System for State fiscal | 16 | | year 2005, taking into account the amounts
appropriated to and | 17 | | received by the System under subsection (d) of Section
7.2 of | 18 | | the General Obligation Bond Act.
| 19 | | On or before July 1, 2005, the Board shall recalculate and | 20 | | recertify
to the Governor and to each department the amount of | 21 | | the required State
contribution to the System and the required | 22 | | rates for State contributions
to the System for State fiscal | 23 | | year 2006, taking into account the changes in required State | 24 | | contributions made by this amendatory Act of the 94th General | 25 | | Assembly.
| 26 | | On or before April 1, 2011 June 15, 2010 , the Board shall |
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| 1 | | recalculate and recertify to the Governor and to each | 2 | | department the amount of the required State contribution to the | 3 | | System for State fiscal year 2011, applying the changes made by | 4 | | Public Act 96-889 to the System's assets and liabilities as of | 5 | | June 30, 2009 as though Public Act 96-889 was approved on that | 6 | | date. | 7 | | (Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4, | 8 | | eff. 6-1-05; 09600SB3514ham003.)
| 9 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 10 | | Sec. 15-155. Employer contributions.
| 11 | | (a) The State of Illinois shall make contributions by | 12 | | appropriations of
amounts which, together with the other | 13 | | employer contributions from trust,
federal, and other funds, | 14 | | employee contributions, income from investments,
and other | 15 | | income of this System, will be sufficient to meet the cost of
| 16 | | maintaining and administering the System on a 90% funded basis | 17 | | in accordance
with actuarial recommendations.
| 18 | | The Board shall determine the amount of State contributions | 19 | | required for
each fiscal year on the basis of the actuarial | 20 | | tables and other assumptions
adopted by the Board and the | 21 | | recommendations of the actuary, using the formula
in subsection | 22 | | (a-1).
| 23 | | (a-1) For State fiscal years 2012 through 2045, the minimum | 24 | | contribution
to the System to be made by the State for each | 25 | | fiscal year shall be an amount
determined by the System to be |
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| 1 | | sufficient to bring the total assets of the
System up to 90% of | 2 | | the total actuarial liabilities of the System by the end of
| 3 | | State fiscal year 2045. In making these determinations, the | 4 | | required State
contribution shall be calculated each year as a | 5 | | level percentage of payroll
over the years remaining to and | 6 | | including fiscal year 2045 and shall be
determined under the | 7 | | projected unit credit actuarial cost method.
| 8 | | For State fiscal years 1996 through 2005, the State | 9 | | contribution to
the System, as a percentage of the applicable | 10 | | employee payroll, shall be
increased in equal annual increments | 11 | | so that by State fiscal year 2011, the
State is contributing at | 12 | | the rate required under this Section.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State
contribution for State fiscal year 2006 is | 15 | | $166,641,900.
| 16 | | Notwithstanding any other provision of this Article, the | 17 | | total required State
contribution for State fiscal year 2007 is | 18 | | $252,064,100.
| 19 | | For each of State fiscal years 2008 through 2009, the State | 20 | | contribution to
the System, as a percentage of the applicable | 21 | | employee payroll, shall be
increased in equal annual increments | 22 | | from the required State contribution for State fiscal year | 23 | | 2007, so that by State fiscal year 2011, the
State is | 24 | | contributing at the rate otherwise required under this Section.
| 25 | | Notwithstanding any other provision of this Article, the | 26 | | total required State contribution for State fiscal year 2010 is |
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| 1 | | $702,514,000 and shall be made from the State Pensions Fund and | 2 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 3 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 4 | | share of bond sale expenses determined by the System's share of | 5 | | total bond proceeds, (ii) any amounts received from the General | 6 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 7 | | proceeds due to the issuance of discounted bonds, if | 8 | | applicable. | 9 | | Notwithstanding any other provision of this Article, the
| 10 | | total required State contribution for State fiscal year 2011 is
| 11 | | the amount recertified by the System on or before April 1, 2011 | 12 | | June 15, 2010 pursuant to Section 15-165 and shall be made from | 13 | | the State Pensions Fund and
proceeds of bonds sold in fiscal | 14 | | year 2011 pursuant to Section
7.2 of the General Obligation | 15 | | Bond Act, less (i) the pro rata
share of bond sale expenses | 16 | | determined by the System's share of
total bond proceeds, (ii) | 17 | | any amounts received from the General
Revenue Fund in fiscal | 18 | | year 2011, and (iii) any reduction in bond
proceeds due to the | 19 | | issuance of discounted bonds, if
applicable. | 20 | | Beginning in State fiscal year 2046, the minimum State | 21 | | contribution for
each fiscal year shall be the amount needed to | 22 | | maintain the total assets of
the System at 90% of the total | 23 | | actuarial liabilities of the System.
| 24 | | Amounts received by the System pursuant to Section 25 of | 25 | | the Budget Stabilization Act or Section 8.12 of the State | 26 | | Finance Act in any fiscal year do not reduce and do not |
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| 1 | | constitute payment of any portion of the minimum State | 2 | | contribution required under this Article in that fiscal year. | 3 | | Such amounts shall not reduce, and shall not be included in the | 4 | | calculation of, the required State contributions under this | 5 | | Article in any future year until the System has reached a | 6 | | funding ratio of at least 90%. A reference in this Article to | 7 | | the "required State contribution" or any substantially similar | 8 | | term does not include or apply to any amounts payable to the | 9 | | System under Section 25 of the Budget Stabilization Act. | 10 | | Notwithstanding any other provision of this Section, the | 11 | | required State
contribution for State fiscal year 2005 and for | 12 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 13 | | under this Section and
certified under Section 15-165, shall | 14 | | not exceed an amount equal to (i) the
amount of the required | 15 | | State contribution that would have been calculated under
this | 16 | | Section for that fiscal year if the System had not received any | 17 | | payments
under subsection (d) of Section 7.2 of the General | 18 | | Obligation Bond Act, minus
(ii) the portion of the State's | 19 | | total debt service payments for that fiscal
year on the bonds | 20 | | issued for the purposes of that Section 7.2, as determined
and | 21 | | certified by the Comptroller, that is the same as the System's | 22 | | portion of
the total moneys distributed under subsection (d) of | 23 | | Section 7.2 of the General
Obligation Bond Act. In determining | 24 | | this maximum for State fiscal years 2008 through 2010, however, | 25 | | the amount referred to in item (i) shall be increased, as a | 26 | | percentage of the applicable employee payroll, in equal |
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| 1 | | increments calculated from the sum of the required State | 2 | | contribution for State fiscal year 2007 plus the applicable | 3 | | portion of the State's total debt service payments for fiscal | 4 | | year 2007 on the bonds issued for the purposes of Section 7.2 | 5 | | of the General
Obligation Bond Act, so that, by State fiscal | 6 | | year 2011, the
State is contributing at the rate otherwise | 7 | | required under this Section.
| 8 | | (b) If an employee is paid from trust or federal funds, the | 9 | | employer
shall pay to the Board contributions from those funds | 10 | | which are
sufficient to cover the accruing normal costs on | 11 | | behalf of the employee.
However, universities having employees | 12 | | who are compensated out of local
auxiliary funds, income funds, | 13 | | or service enterprise funds are not required
to pay such | 14 | | contributions on behalf of those employees. The local auxiliary
| 15 | | funds, income funds, and service enterprise funds of | 16 | | universities shall not be
considered trust funds for the | 17 | | purpose of this Article, but funds of alumni
associations, | 18 | | foundations, and athletic associations which are affiliated | 19 | | with
the universities included as employers under this Article | 20 | | and other employers
which do not receive State appropriations | 21 | | are considered to be trust funds for
the purpose of this | 22 | | Article.
| 23 | | (b-1) The City of Urbana and the City of Champaign shall | 24 | | each make
employer contributions to this System for their | 25 | | respective firefighter
employees who participate in this | 26 | | System pursuant to subsection (h) of Section
15-107. The rate |
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| 1 | | of contributions to be made by those municipalities shall
be | 2 | | determined annually by the Board on the basis of the actuarial | 3 | | assumptions
adopted by the Board and the recommendations of the | 4 | | actuary, and shall be
expressed as a percentage of salary for | 5 | | each such employee. The Board shall
certify the rate to the | 6 | | affected municipalities as soon as may be practical.
The | 7 | | employer contributions required under this subsection shall be | 8 | | remitted by
the municipality to the System at the same time and | 9 | | in the same manner as
employee contributions.
| 10 | | (c) Through State fiscal year 1995: The total employer | 11 | | contribution shall
be apportioned among the various funds of | 12 | | the State and other employers,
whether trust, federal, or other | 13 | | funds, in accordance with actuarial procedures
approved by the | 14 | | Board. State of Illinois contributions for employers receiving
| 15 | | State appropriations for personal services shall be payable | 16 | | from appropriations
made to the employers or to the System. The | 17 | | contributions for Class I
community colleges covering earnings | 18 | | other than those paid from trust and
federal funds, shall be | 19 | | payable solely from appropriations to the Illinois
Community | 20 | | College Board or the System for employer contributions.
| 21 | | (d) Beginning in State fiscal year 1996, the required State | 22 | | contributions
to the System shall be appropriated directly to | 23 | | the System and shall be payable
through vouchers issued in | 24 | | accordance with subsection (c) of Section 15-165, except as | 25 | | provided in subsection (g).
| 26 | | (e) The State Comptroller shall draw warrants payable to |
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| 1 | | the System upon
proper certification by the System or by the | 2 | | employer in accordance with the
appropriation laws and this | 3 | | Code.
| 4 | | (f) Normal costs under this Section means liability for
| 5 | | pensions and other benefits which accrues to the System because | 6 | | of the
credits earned for service rendered by the participants | 7 | | during the
fiscal year and expenses of administering the | 8 | | System, but shall not
include the principal of or any | 9 | | redemption premium or interest on any bonds
issued by the Board | 10 | | or any expenses incurred or deposits required in
connection | 11 | | therewith.
| 12 | | (g) If the amount of a participant's earnings for any | 13 | | academic year used to determine the final rate of earnings, | 14 | | determined on a full-time equivalent basis, exceeds the amount | 15 | | of his or her earnings with the same employer for the previous | 16 | | academic year, determined on a full-time equivalent basis, by | 17 | | more than 6%, the participant's employer shall pay to the | 18 | | System, in addition to all other payments required under this | 19 | | Section and in accordance with guidelines established by the | 20 | | System, the present value of the increase in benefits resulting | 21 | | from the portion of the increase in earnings that is in excess | 22 | | of 6%. This present value shall be computed by the System on | 23 | | the basis of the actuarial assumptions and tables used in the | 24 | | most recent actuarial valuation of the System that is available | 25 | | at the time of the computation. The System may require the | 26 | | employer to provide any pertinent information or |
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| 1 | | documentation. | 2 | | Whenever it determines that a payment is or may be required | 3 | | under this subsection (g), the System shall calculate the | 4 | | amount of the payment and bill the employer for that amount. | 5 | | The bill shall specify the calculations used to determine the | 6 | | amount due. If the employer disputes the amount of the bill, it | 7 | | may, within 30 days after receipt of the bill, apply to the | 8 | | System in writing for a recalculation. The application must | 9 | | specify in detail the grounds of the dispute and, if the | 10 | | employer asserts that the calculation is subject to subsection | 11 | | (h) or (i) of this Section, must include an affidavit setting | 12 | | forth and attesting to all facts within the employer's | 13 | | knowledge that are pertinent to the applicability of subsection | 14 | | (h) or (i). Upon receiving a timely application for | 15 | | recalculation, the System shall review the application and, if | 16 | | appropriate, recalculate the amount due.
| 17 | | The employer contributions required under this subsection | 18 | | (f) may be paid in the form of a lump sum within 90 days after | 19 | | receipt of the bill. If the employer contributions are not paid | 20 | | within 90 days after receipt of the bill, then interest will be | 21 | | charged at a rate equal to the System's annual actuarially | 22 | | assumed rate of return on investment compounded annually from | 23 | | the 91st day after receipt of the bill. Payments must be | 24 | | concluded within 3 years after the employer's receipt of the | 25 | | bill. | 26 | | (h) This subsection (h) applies only to payments made or |
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| 1 | | salary increases given on or after June 1, 2005 but before July | 2 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 3 | | require the System to refund any payments received before July | 4 | | 31, 2006 (the effective date of Public Act 94-1057). | 5 | | When assessing payment for any amount due under subsection | 6 | | (g), the System shall exclude earnings increases paid to | 7 | | participants under contracts or collective bargaining | 8 | | agreements entered into, amended, or renewed before June 1, | 9 | | 2005.
| 10 | | When assessing payment for any amount due under subsection | 11 | | (g), the System shall exclude earnings increases paid to a | 12 | | participant at a time when the participant is 10 or more years | 13 | | from retirement eligibility under Section 15-135.
| 14 | | When assessing payment for any amount due under subsection | 15 | | (g), the System shall exclude earnings increases resulting from | 16 | | overload work, including a contract for summer teaching, or | 17 | | overtime when the employer has certified to the System, and the | 18 | | System has approved the certification, that: (i) in the case of | 19 | | overloads (A) the overload work is for the sole purpose of | 20 | | academic instruction in excess of the standard number of | 21 | | instruction hours for a full-time employee occurring during the | 22 | | academic year that the overload is paid and (B) the earnings | 23 | | increases are equal to or less than the rate of pay for | 24 | | academic instruction computed using the participant's current | 25 | | salary rate and work schedule; and (ii) in the case of | 26 | | overtime, the overtime was necessary for the educational |
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| 1 | | mission. | 2 | | When assessing payment for any amount due under subsection | 3 | | (g), the System shall exclude any earnings increase resulting | 4 | | from (i) a promotion for which the employee moves from one | 5 | | classification to a higher classification under the State | 6 | | Universities Civil Service System, (ii) a promotion in academic | 7 | | rank for a tenured or tenure-track faculty position, or (iii) a | 8 | | promotion that the Illinois Community College Board has | 9 | | recommended in accordance with subsection (k) of this Section. | 10 | | These earnings increases shall be excluded only if the | 11 | | promotion is to a position that has existed and been filled by | 12 | | a member for no less than one complete academic year and the | 13 | | earnings increase as a result of the promotion is an increase | 14 | | that results in an amount no greater than the average salary | 15 | | paid for other similar positions. | 16 | | (i) When assessing payment for any amount due under | 17 | | subsection (g), the System shall exclude any salary increase | 18 | | described in subsection (h) of this Section given on or after | 19 | | July 1, 2011 but before July 1, 2014 under a contract or | 20 | | collective bargaining agreement entered into, amended, or | 21 | | renewed on or after June 1, 2005 but before July 1, 2011. | 22 | | Notwithstanding any other provision of this Section, any | 23 | | payments made or salary increases given after June 30, 2014 | 24 | | shall be used in assessing payment for any amount due under | 25 | | subsection (g) of this Section.
| 26 | | (j) The System shall prepare a report and file copies of |
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| 1 | | the report with the Governor and the General Assembly by | 2 | | January 1, 2007 that contains all of the following information: | 3 | | (1) The number of recalculations required by the | 4 | | changes made to this Section by Public Act 94-1057 for each | 5 | | employer. | 6 | | (2) The dollar amount by which each employer's | 7 | | contribution to the System was changed due to | 8 | | recalculations required by Public Act 94-1057. | 9 | | (3) The total amount the System received from each | 10 | | employer as a result of the changes made to this Section by | 11 | | Public Act 94-4. | 12 | | (4) The increase in the required State contribution | 13 | | resulting from the changes made to this Section by Public | 14 | | Act 94-1057. | 15 | | (k) The Illinois Community College Board shall adopt rules | 16 | | for recommending lists of promotional positions submitted to | 17 | | the Board by community colleges and for reviewing the | 18 | | promotional lists on an annual basis. When recommending | 19 | | promotional lists, the Board shall consider the similarity of | 20 | | the positions submitted to those positions recognized for State | 21 | | universities by the State Universities Civil Service System. | 22 | | The Illinois Community College Board shall file a copy of its | 23 | | findings with the System. The System shall consider the | 24 | | findings of the Illinois Community College Board when making | 25 | | determinations under this Section. The System shall not exclude | 26 | | any earnings increases resulting from a promotion when the |
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| 1 | | promotion was not submitted by a community college. Nothing in | 2 | | this subsection (k) shall require any community college to | 3 | | submit any information to the Community College Board.
| 4 | | (l) For purposes of determining the required State | 5 | | contribution to the System, the value of the System's assets | 6 | | shall be equal to the actuarial value of the System's assets, | 7 | | which shall be calculated as follows: | 8 | | As of June 30, 2008, the actuarial value of the System's | 9 | | assets shall be equal to the market value of the assets as of | 10 | | that date. In determining the actuarial value of the System's | 11 | | assets for fiscal years after June 30, 2008, any actuarial | 12 | | gains or losses from investment return incurred in a fiscal | 13 | | year shall be recognized in equal annual amounts over the | 14 | | 5-year period following that fiscal year. | 15 | | (m) For purposes of determining the required State | 16 | | contribution to the system for a particular year, the actuarial | 17 | | value of assets shall be assumed to earn a rate of return equal | 18 | | to the system's actuarially assumed rate of return. | 19 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 20 | | 96-43, eff. 7-15-09; 09600SB3514ham003.)
| 21 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 22 | | Sec. 15-165. To certify amounts and submit vouchers.
| 23 | | (a) The Board shall certify to the Governor on or before | 24 | | November 15 of each
year the appropriation required from State | 25 | | funds for the purposes of this
System for the following fiscal |
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| 1 | | year. The certification shall include a copy
of the actuarial | 2 | | recommendations upon which it is based.
| 3 | | On or before May 1, 2004, the Board shall recalculate and | 4 | | recertify to
the Governor the amount of the required State | 5 | | contribution to the System for
State fiscal year 2005, taking | 6 | | into account the amounts appropriated to and
received by the | 7 | | System under subsection (d) of Section 7.2 of the General
| 8 | | Obligation Bond Act.
| 9 | | On or before July 1, 2005, the Board shall recalculate and | 10 | | recertify
to the Governor the amount of the required State
| 11 | | contribution to the System for State fiscal year 2006, taking | 12 | | into account the changes in required State contributions made | 13 | | by this amendatory Act of the 94th General Assembly.
| 14 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 15 | | recalculate and recertify to the Governor the amount of the | 16 | | required State contribution to the System for State fiscal year | 17 | | 2011, applying the changes made by Public Act 96-889 to the | 18 | | System's assets and liabilities as of June 30, 2009 as though | 19 | | Public Act 96-889 was approved on that date. | 20 | | (b) The Board shall certify to the State Comptroller or | 21 | | employer, as the
case may be, from time to time, by its | 22 | | president and secretary, with its seal
attached, the amounts | 23 | | payable to the System from the various funds.
| 24 | | (c) Beginning in State fiscal year 1996, on or as soon as | 25 | | possible after the
15th day of each month the Board shall | 26 | | submit vouchers for payment of State
contributions to the |
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| 1 | | System, in a total monthly amount of one-twelfth of the
| 2 | | required annual State contribution certified under subsection | 3 | | (a).
From the effective date of this amendatory Act
of the 93rd | 4 | | General Assembly through June 30, 2004, the Board shall not
| 5 | | submit vouchers for the remainder of fiscal year 2004 in excess | 6 | | of the
fiscal year 2004 certified contribution amount | 7 | | determined
under this Section after taking into consideration | 8 | | the transfer to the
System under subsection (b) of Section | 9 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 10 | | the State Comptroller and Treasurer by warrants drawn
on the | 11 | | funds appropriated to the System for that fiscal year.
| 12 | | If in any month the amount remaining unexpended from all | 13 | | other
appropriations to the System for the applicable fiscal | 14 | | year (including the
appropriations to the System under Section | 15 | | 8.12 of the State Finance Act and
Section 1 of the State | 16 | | Pension Funds Continuing Appropriation Act) is less than
the | 17 | | amount lawfully vouchered under this Section, the difference | 18 | | shall be paid
from the General Revenue Fund under the | 19 | | continuing appropriation authority
provided in Section 1.1 of | 20 | | the State Pension Funds Continuing Appropriation
Act.
| 21 | | (d) So long as the payments received are the full amount | 22 | | lawfully
vouchered under this Section, payments received by the | 23 | | System under this
Section shall be applied first toward the | 24 | | employer contribution to the
self-managed plan established | 25 | | under Section 15-158.2. Payments shall be
applied second toward | 26 | | the employer's portion of the normal costs of the System,
as |
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| 1 | | defined in subsection (f) of Section 15-155. The balance shall | 2 | | be applied
toward the unfunded actuarial liabilities of the | 3 | | System.
| 4 | | (e) In the event that the System does not receive, as a | 5 | | result of
legislative enactment or otherwise, payments | 6 | | sufficient to
fully fund the employer contribution to the | 7 | | self-managed plan
established under Section 15-158.2 and to | 8 | | fully fund that portion of the
employer's portion of the normal | 9 | | costs of the System, as calculated in
accordance with Section | 10 | | 15-155(a-1), then any payments received shall be
applied | 11 | | proportionately to the optional retirement program established | 12 | | under
Section 15-158.2 and to the employer's portion of the | 13 | | normal costs of the
System, as calculated in accordance with | 14 | | Section 15-155(a-1).
| 15 | | (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 16 | | eff. 6-1-05; 09600SB3514ham003.)
| 17 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 18 | | Sec. 16-158. Contributions by State and other employing | 19 | | units.
| 20 | | (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
| 25 | | maintaining and administering the System on a 90% funded basis |
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| 1 | | in accordance
with actuarial recommendations.
| 2 | | The Board shall determine the amount of State contributions | 3 | | required for
each fiscal year on the basis of the actuarial | 4 | | tables and other assumptions
adopted by the Board and the | 5 | | recommendations of the actuary, using the formula
in subsection | 6 | | (b-3).
| 7 | | (a-1) Annually, on or before November 15, the Board shall | 8 | | certify to the
Governor the amount of the required State | 9 | | contribution for the coming fiscal
year. The certification | 10 | | shall include a copy of the actuarial recommendations
upon | 11 | | 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 April 1, 2011 July 1, 2005 , the Board shall | 19 | | recalculate and recertify
to the Governor the amount of the | 20 | | required State
contribution to the System for State fiscal year | 21 | | 2006, taking into account the changes in required State | 22 | | contributions made by this amendatory Act of the 94th General | 23 | | Assembly.
| 24 | | On or before June 15, 2010, 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 2011, applying |
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| 1 | | the changes made by Public Act 96-889 to the System's assets | 2 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 3 | | was approved on that date. | 4 | | (b) Through State fiscal year 1995, the State contributions | 5 | | shall be
paid to the System in accordance with Section 18-7 of | 6 | | the School Code.
| 7 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 8 | | of each month,
or as soon thereafter as may be practicable, the | 9 | | Board shall submit vouchers
for payment of State contributions | 10 | | to the System, in a total monthly amount of
one-twelfth of the | 11 | | required annual State contribution certified under
subsection | 12 | | (a-1).
From the
effective date of this amendatory Act of the | 13 | | 93rd General Assembly
through June 30, 2004, the Board shall | 14 | | not submit vouchers for the
remainder of fiscal year 2004 in | 15 | | excess of the fiscal year 2004
certified contribution amount | 16 | | determined under this Section
after taking into consideration | 17 | | the transfer to the System
under subsection (a) of Section | 18 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 19 | | the State Comptroller and
Treasurer by warrants drawn on the | 20 | | funds appropriated to the System for that
fiscal year.
| 21 | | If in any month the amount remaining unexpended from all | 22 | | other appropriations
to the System for the applicable fiscal | 23 | | year (including the appropriations to
the System under Section | 24 | | 8.12 of the State Finance Act and Section 1 of the
State | 25 | | Pension Funds Continuing Appropriation Act) is less than the | 26 | | amount
lawfully vouchered under this subsection, the |
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| 1 | | difference shall be paid from the
Common School Fund under the | 2 | | continuing appropriation authority provided in
Section 1.1 of | 3 | | the State Pension Funds Continuing Appropriation Act.
| 4 | | (b-2) Allocations from the Common School Fund apportioned | 5 | | to school
districts not coming under this System shall not be | 6 | | diminished or affected by
the provisions of this Article.
| 7 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 8 | | contribution
to the System to be made by the State for each | 9 | | fiscal year shall be an amount
determined by the System to be | 10 | | sufficient to bring the total assets of the
System up to 90% of | 11 | | the total actuarial liabilities of the System by the end of
| 12 | | State fiscal year 2045. In making these determinations, the | 13 | | required State
contribution shall be calculated each year as a | 14 | | level percentage of payroll
over the years remaining to and | 15 | | including fiscal year 2045 and shall be
determined under the | 16 | | projected unit credit actuarial cost method.
| 17 | | For State fiscal years 1996 through 2005, the State | 18 | | contribution to the
System, as a percentage of the applicable | 19 | | employee payroll, shall be increased
in equal annual increments | 20 | | so that by State fiscal year 2011, the State is
contributing at | 21 | | the rate required under this Section; except that in the
| 22 | | following specified State fiscal years, the State contribution | 23 | | to the System
shall not be less than the following indicated | 24 | | percentages of the applicable
employee payroll, even if the | 25 | | indicated percentage will produce a State
contribution in | 26 | | excess of the amount otherwise required under this subsection
|
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| 1 | | and subsection (a), and notwithstanding any contrary | 2 | | certification made under
subsection (a-1) before the effective | 3 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 4 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 5 | | 2003; and
13.56% in FY 2004.
| 6 | | Notwithstanding any other provision of this Article, the | 7 | | total required State
contribution for State fiscal year 2006 is | 8 | | $534,627,700.
| 9 | | Notwithstanding any other provision of this Article, the | 10 | | total required State
contribution for State fiscal year 2007 is | 11 | | $738,014,500.
| 12 | | For each of State fiscal years 2008 through 2009, the State | 13 | | contribution to
the System, as a percentage of the applicable | 14 | | employee payroll, shall be
increased in equal annual increments | 15 | | from the required State contribution for State fiscal year | 16 | | 2007, so that by State fiscal year 2011, the
State is | 17 | | contributing at the rate otherwise required under this Section.
| 18 | | Notwithstanding any other provision of this Article, the | 19 | | total required State contribution for State fiscal year 2010 is | 20 | | $2,089,268,000 and shall be made from the proceeds of bonds | 21 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 22 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 23 | | expenses determined by the System's share of total bond | 24 | | proceeds, (ii) any amounts received from the Common School Fund | 25 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 26 | | due to the issuance of discounted bonds, if applicable. |
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| 1 | | Notwithstanding any other provision of this Article, the
| 2 | | total required State contribution for State fiscal year 2011 is
| 3 | | the amount recertified by the System on or before April 1, 2011 | 4 | | June 15, 2010 pursuant to subsection (a-1) of this Section and | 5 | | shall be made from the proceeds of bonds
sold in fiscal year | 6 | | 2011 pursuant to Section 7.2 of the General
Obligation Bond | 7 | | Act, less (i) the pro rata share of bond sale
expenses | 8 | | determined by the System's share of total bond
proceeds, (ii) | 9 | | any amounts received from the Common School Fund
in fiscal year | 10 | | 2011, and (iii) any reduction in bond proceeds
due to the | 11 | | issuance of discounted bonds, if applicable. This amount shall | 12 | | include, in addition to the amount certified by the System, an | 13 | | amount necessary to meet employer contributions required by the | 14 | | State as an employer under paragraph (e) of this Section, which | 15 | | may also be used by the System for contributions required by | 16 | | paragraph (a) of Section 16-127. | 17 | | Beginning in State fiscal year 2046, the minimum State | 18 | | contribution for
each fiscal year shall be the amount needed to | 19 | | maintain the total assets of
the System at 90% of the total | 20 | | actuarial liabilities of the System.
| 21 | | Amounts received by the System pursuant to Section 25 of | 22 | | the Budget Stabilization Act or Section 8.12 of the State | 23 | | Finance Act in any fiscal year do not reduce and do not | 24 | | constitute payment of any portion of the minimum State | 25 | | contribution required under this Article in that fiscal year. | 26 | | Such amounts shall not reduce, and shall not be included in the |
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| 1 | | calculation of, the required State contributions under this | 2 | | Article in any future year until the System has reached a | 3 | | funding ratio of at least 90%. A reference in this Article to | 4 | | the "required State contribution" or any substantially similar | 5 | | term does not include or apply to any amounts payable to the | 6 | | System under Section 25 of the Budget Stabilization Act. | 7 | | Notwithstanding any other provision of this Section, the | 8 | | required State
contribution for State fiscal year 2005 and for | 9 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 10 | | under this Section and
certified under subsection (a-1), shall | 11 | | not exceed an amount equal to (i) the
amount of the required | 12 | | State contribution that would have been calculated under
this | 13 | | Section for that fiscal year if the System had not received any | 14 | | payments
under subsection (d) of Section 7.2 of the General | 15 | | Obligation Bond Act, minus
(ii) the portion of the State's | 16 | | total debt service payments for that fiscal
year on the bonds | 17 | | issued for the purposes of that Section 7.2, as determined
and | 18 | | certified by the Comptroller, that is the same as the System's | 19 | | portion of
the total moneys distributed under subsection (d) of | 20 | | Section 7.2 of the General
Obligation Bond Act. In determining | 21 | | this maximum for State fiscal years 2008 through 2010, however, | 22 | | the amount referred to in item (i) shall be increased, as a | 23 | | percentage of the applicable employee payroll, in equal | 24 | | increments calculated from the sum of the required State | 25 | | contribution for State fiscal year 2007 plus the applicable | 26 | | portion of the State's total debt service payments for fiscal |
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| 1 | | year 2007 on the bonds issued for the purposes of Section 7.2 | 2 | | of the General
Obligation Bond Act, so that, by State fiscal | 3 | | year 2011, the
State is contributing at the rate otherwise | 4 | | required under this Section.
| 5 | | (c) Payment of the required State contributions and of all | 6 | | pensions,
retirement annuities, death benefits, refunds, and | 7 | | other benefits granted
under or assumed by this System, and all | 8 | | expenses in connection with the
administration and operation | 9 | | thereof, are obligations of the State.
| 10 | | If members are paid from special trust or federal funds | 11 | | which are
administered by the employing unit, whether school | 12 | | district or other
unit, the employing unit shall pay to the | 13 | | System from such
funds the full accruing retirement costs based | 14 | | upon that
service, as determined by the System. Employer | 15 | | contributions, based on
salary paid to members from federal | 16 | | funds, may be forwarded by the distributing
agency of the State | 17 | | of Illinois to the System prior to allocation, in an
amount | 18 | | determined in accordance with guidelines established by such
| 19 | | agency and the System.
| 20 | | (d) Effective July 1, 1986, any employer of a teacher as | 21 | | defined in
paragraph (8) of Section 16-106 shall pay the | 22 | | employer's normal cost
of benefits based upon the teacher's | 23 | | service, in addition to
employee contributions, as determined | 24 | | by the System. Such employer
contributions shall be forwarded | 25 | | monthly in accordance with guidelines
established by the | 26 | | System.
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| 1 | | However, with respect to benefits granted under Section | 2 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 3 | | of Section 16-106, the
employer's contribution shall be 12% | 4 | | (rather than 20%) of the member's
highest annual salary rate | 5 | | for each year of creditable service granted, and
the employer | 6 | | shall also pay the required employee contribution on behalf of
| 7 | | the teacher. For the purposes of Sections 16-133.4 and | 8 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 9 | | 16-106 who is serving in that capacity
while on leave of | 10 | | absence from another employer under this Article shall not
be | 11 | | considered an employee of the employer from which the teacher | 12 | | is on leave.
| 13 | | (e) Beginning July 1, 1998, every employer of a teacher
| 14 | | shall pay to the System an employer contribution computed as | 15 | | follows:
| 16 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 17 | | employer
contribution shall be equal to 0.3% of each | 18 | | teacher's salary.
| 19 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 20 | | contribution shall be equal to 0.58% of each teacher's | 21 | | salary.
| 22 | | The school district or other employing unit may pay these | 23 | | employer
contributions out of any source of funding available | 24 | | for that purpose and
shall forward the contributions to the | 25 | | System on the schedule established
for the payment of member | 26 | | contributions.
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| 1 | | These employer contributions are intended to offset a | 2 | | portion of the cost
to the System of the increases in | 3 | | retirement benefits resulting from this
amendatory Act of 1998.
| 4 | | Each employer of teachers is entitled to a credit against | 5 | | the contributions
required under this subsection (e) with | 6 | | respect to salaries paid to teachers
for the period January 1, | 7 | | 2002 through June 30, 2003, equal to the amount paid
by that | 8 | | employer under subsection (a-5) of Section 6.6 of the State | 9 | | Employees
Group Insurance Act of 1971 with respect to salaries | 10 | | paid to teachers for that
period.
| 11 | | The additional 1% employee contribution required under | 12 | | Section 16-152 by
this amendatory Act of 1998 is the | 13 | | responsibility of the teacher and not the
teacher's employer, | 14 | | unless the employer agrees, through collective bargaining
or | 15 | | otherwise, to make the contribution on behalf of the teacher.
| 16 | | If an employer is required by a contract in effect on May | 17 | | 1, 1998 between the
employer and an employee organization to | 18 | | pay, on behalf of all its full-time
employees
covered by this | 19 | | Article, all mandatory employee contributions required under
| 20 | | this Article, then the employer shall be excused from paying | 21 | | the employer
contribution required under this subsection (e) | 22 | | for the balance of the term
of that contract. The employer and | 23 | | the employee organization shall jointly
certify to the System | 24 | | the existence of the contractual requirement, in such
form as | 25 | | the System may prescribe. This exclusion shall cease upon the
| 26 | | termination, extension, or renewal of the contract at any time |
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| 1 | | after May 1,
1998.
| 2 | | (f) If the amount of a teacher's salary for any school year | 3 | | used to determine final average salary exceeds the member's | 4 | | annual full-time salary rate with the same employer for the | 5 | | previous school year by more than 6%, the teacher's employer | 6 | | shall pay to the System, in addition to all other payments | 7 | | required under this Section and in accordance with guidelines | 8 | | established by the System, the present value of the increase in | 9 | | benefits resulting from the portion of the increase in salary | 10 | | that is in excess of 6%. This present value shall be computed | 11 | | by the System on the basis of the actuarial assumptions and | 12 | | tables used in the most recent actuarial valuation of the | 13 | | System that is available at the time of the computation. If a | 14 | | teacher's salary for the 2005-2006 school year is used to | 15 | | determine final average salary under this subsection (f), then | 16 | | the changes made to this subsection (f) by Public Act 94-1057 | 17 | | shall apply in calculating whether the increase in his or her | 18 | | salary is in excess of 6%. For the purposes of this Section, | 19 | | change in employment under Section 10-21.12 of the School Code | 20 | | on or after June 1, 2005 shall constitute a change in employer. | 21 | | The System may require the employer to provide any pertinent | 22 | | information or documentation.
The changes made to this | 23 | | subsection (f) by this amendatory Act of the 94th General | 24 | | Assembly apply without regard to whether the teacher was in | 25 | | service on or after its effective date.
| 26 | | Whenever it determines that a payment is or may be required |
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| 1 | | under this subsection, the System shall calculate the amount of | 2 | | the payment and bill the employer for that amount. The bill | 3 | | shall specify the calculations used to determine the amount | 4 | | due. If the employer disputes the amount of the bill, it may, | 5 | | within 30 days after receipt of the bill, apply to the System | 6 | | in writing for a recalculation. The application must specify in | 7 | | detail the grounds of the dispute and, if the employer asserts | 8 | | that the calculation is subject to subsection (g) or (h) of | 9 | | this Section, must include an affidavit setting forth and | 10 | | attesting to all facts within the employer's knowledge that are | 11 | | pertinent to the applicability of that subsection. Upon | 12 | | receiving a timely application for recalculation, the System | 13 | | shall review the application and, if appropriate, recalculate | 14 | | the amount due.
| 15 | | The employer contributions required under this subsection | 16 | | (f) may be paid in the form of a lump sum within 90 days after | 17 | | receipt of the bill. If the employer contributions are not paid | 18 | | within 90 days after receipt of the bill, then interest will be | 19 | | charged at a rate equal to the System's annual actuarially | 20 | | assumed rate of return on investment compounded annually from | 21 | | the 91st day after receipt of the bill. Payments must be | 22 | | concluded within 3 years after the employer's receipt of the | 23 | | bill.
| 24 | | (g) This subsection (g) applies only to payments made or | 25 | | salary increases given on or after June 1, 2005 but before July | 26 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
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| 1 | | require the System to refund any payments received before
July | 2 | | 31, 2006 (the effective date of Public Act 94-1057). | 3 | | When assessing payment for any amount due under subsection | 4 | | (f), the System shall exclude salary increases paid to teachers | 5 | | under contracts or collective bargaining agreements entered | 6 | | into, amended, or renewed before June 1, 2005.
| 7 | | When assessing payment for any amount due under subsection | 8 | | (f), the System shall exclude salary increases paid to a | 9 | | teacher at a time when the teacher is 10 or more years from | 10 | | retirement eligibility under Section 16-132 or 16-133.2.
| 11 | | When assessing payment for any amount due under subsection | 12 | | (f), the System shall exclude salary increases resulting from | 13 | | overload work, including summer school, when the school | 14 | | district has certified to the System, and the System has | 15 | | approved the certification, that (i) the overload work is for | 16 | | the sole purpose of classroom instruction in excess of the | 17 | | standard number of classes for a full-time teacher in a school | 18 | | district during a school year and (ii) the salary increases are | 19 | | equal to or less than the rate of pay for classroom instruction | 20 | | computed on the teacher's current salary and work schedule.
| 21 | | When assessing payment for any amount due under subsection | 22 | | (f), the System shall exclude a salary increase resulting from | 23 | | a promotion (i) for which the employee is required to hold a | 24 | | certificate or supervisory endorsement issued by the State | 25 | | Teacher Certification Board that is a different certification | 26 | | or supervisory endorsement than is required for the teacher's |
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| 1 | | previous position and (ii) to a position that has existed and | 2 | | been filled by a member for no less than one complete academic | 3 | | year and the salary increase from the promotion is an increase | 4 | | that results in an amount no greater than the lesser of the | 5 | | average salary paid for other similar positions in the district | 6 | | requiring the same certification or the amount stipulated in | 7 | | the collective bargaining agreement for a similar position | 8 | | requiring the same certification.
| 9 | | When assessing payment for any amount due under subsection | 10 | | (f), the System shall exclude any payment to the teacher from | 11 | | the State of Illinois or the State Board of Education over | 12 | | which the employer does not have discretion, notwithstanding | 13 | | that the payment is included in the computation of final | 14 | | average salary.
| 15 | | (h) When assessing payment for any amount due under | 16 | | subsection (f), the System shall exclude any salary increase | 17 | | described in subsection (g) of this Section given on or after | 18 | | July 1, 2011 but before July 1, 2014 under a contract or | 19 | | collective bargaining agreement entered into, amended, or | 20 | | renewed on or after June 1, 2005 but before July 1, 2011. | 21 | | Notwithstanding any other provision of this Section, any | 22 | | payments made or salary increases given after June 30, 2014 | 23 | | shall be used in assessing payment for any amount due under | 24 | | subsection (f) of this Section.
| 25 | | (i) The System shall prepare a report and file copies of | 26 | | the report with the Governor and the General Assembly by |
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| 1 | | January 1, 2007 that contains all of the following information: | 2 | | (1) The number of recalculations required by the | 3 | | changes made to this Section by Public Act 94-1057 for each | 4 | | employer. | 5 | | (2) The dollar amount by which each employer's | 6 | | contribution to the System was changed due to | 7 | | recalculations required by Public Act 94-1057. | 8 | | (3) The total amount the System received from each | 9 | | employer as a result of the changes made to this Section by | 10 | | Public Act 94-4. | 11 | | (4) The increase in the required State contribution | 12 | | resulting from the changes made to this Section by Public | 13 | | Act 94-1057.
| 14 | | (j) For purposes of determining the required State | 15 | | contribution to the System, the value of the System's assets | 16 | | shall be equal to the actuarial value of the System's assets, | 17 | | which shall be calculated as follows: | 18 | | As of June 30, 2008, the actuarial value of the System's | 19 | | assets shall be equal to the market value of the assets as of | 20 | | that date. In determining the actuarial value of the System's | 21 | | assets for fiscal years after June 30, 2008, any actuarial | 22 | | gains or losses from investment return incurred in a fiscal | 23 | | year shall be recognized in equal annual amounts over the | 24 | | 5-year period following that fiscal year. | 25 | | (k) For purposes of determining the required State | 26 | | contribution to the system for a particular year, the actuarial |
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| 1 | | value of assets shall be assumed to earn a rate of return equal | 2 | | to the system's actuarially assumed rate of return. | 3 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 4 | | 96-43, eff. 7-15-09; 09600SB3514ham003.)
| 5 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 6 | | Sec. 18-131. Financing; employer contributions.
| 7 | | (a) The State of Illinois shall make contributions to this | 8 | | System by
appropriations of the amounts which, together with | 9 | | the contributions of
participants, net earnings on | 10 | | investments, and other income, will meet the
costs of | 11 | | maintaining and administering this System on a 90% funded basis | 12 | | in
accordance with actuarial recommendations.
| 13 | | (b) The Board shall determine the amount of State | 14 | | contributions
required for each fiscal year on the basis of the | 15 | | actuarial tables and other
assumptions adopted by the Board and | 16 | | the prescribed rate of interest, using
the formula in | 17 | | subsection (c).
| 18 | | (c) For State fiscal years 2012 through 2045, the minimum | 19 | | contribution
to the System to be made by the State for each | 20 | | fiscal year shall be an amount
determined by the System to be | 21 | | sufficient to bring the total assets of the
System up to 90% of | 22 | | the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2045. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a | 25 | | level percentage of payroll
over the years remaining to and |
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| 1 | | including fiscal year 2045 and shall be
determined under the | 2 | | projected unit credit actuarial cost method.
| 3 | | For State fiscal years 1996 through 2005, the State | 4 | | contribution to
the System, as a percentage of the applicable | 5 | | employee payroll, shall be
increased in equal annual increments | 6 | | so that by State fiscal year 2011, the
State is contributing at | 7 | | the rate required under this Section.
| 8 | | Notwithstanding any other provision of this Article, the | 9 | | total required State
contribution for State fiscal year 2006 is | 10 | | $29,189,400.
| 11 | | Notwithstanding any other provision of this Article, the | 12 | | total required State
contribution for State fiscal year 2007 is | 13 | | $35,236,800.
| 14 | | For each of State fiscal years 2008 through 2009, the State | 15 | | contribution to
the System, as a percentage of the applicable | 16 | | employee payroll, shall be
increased in equal annual increments | 17 | | from the required State contribution for State fiscal year | 18 | | 2007, so that by State fiscal year 2011, the
State is | 19 | | contributing at the rate otherwise required under this Section.
| 20 | | Notwithstanding any other provision of this Article, the | 21 | | total required State contribution for State fiscal year 2010 is | 22 | | $78,832,000 and shall be made from the proceeds of bonds sold | 23 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 24 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 25 | | expenses determined by the System's share of total bond | 26 | | proceeds, (ii) any amounts received from the General Revenue |
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| 1 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 2 | | proceeds due to the issuance of discounted bonds, if | 3 | | applicable. | 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State contribution for State fiscal year 2011 is
| 6 | | the amount recertified by the System on or before April 1, 2011 | 7 | | June 15, 2010 pursuant to Section 18-140 and shall be made from | 8 | | the proceeds of bonds sold
in fiscal year 2011 pursuant to | 9 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 10 | | pro rata share of bond sale
expenses determined by the System's | 11 | | share of total bond
proceeds, (ii) any amounts received from | 12 | | the General Revenue
Fund in fiscal year 2011, and (iii) any | 13 | | reduction in bond
proceeds due to the issuance of discounted | 14 | | bonds, if
applicable. | 15 | | 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.
| 19 | | Amounts received by the System pursuant to Section 25 of | 20 | | the Budget Stabilization Act or Section 8.12 of the State | 21 | | Finance Act in any fiscal year do not reduce and do not | 22 | | constitute payment of any portion of the minimum State | 23 | | contribution required under this Article in that fiscal year. | 24 | | Such amounts shall not reduce, and shall not be included in the | 25 | | calculation of, the required State contributions under this | 26 | | Article in any future year until the System has reached a |
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| 1 | | funding ratio of at least 90%. A reference in this Article to | 2 | | the "required State contribution" or any substantially similar | 3 | | term does not include or apply to any amounts payable to the | 4 | | System under Section 25 of the Budget Stabilization Act.
| 5 | | Notwithstanding any other provision of this Section, the | 6 | | required State
contribution for State fiscal year 2005 and for | 7 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 8 | | under this Section and
certified under Section 18-140, shall | 9 | | not exceed an amount equal to (i) the
amount of the required | 10 | | State contribution that would have been calculated under
this | 11 | | Section for that fiscal year if the System had not received any | 12 | | payments
under subsection (d) of Section 7.2 of the General | 13 | | Obligation Bond Act, minus
(ii) the portion of the State's | 14 | | total debt service payments for that fiscal
year on the bonds | 15 | | issued for the purposes of that Section 7.2, as determined
and | 16 | | certified by the Comptroller, that is the same as the System's | 17 | | portion of
the total moneys distributed under subsection (d) of | 18 | | Section 7.2 of the General
Obligation Bond Act. In determining | 19 | | this maximum for State fiscal years 2008 through 2010, however, | 20 | | the amount referred to in item (i) shall be increased, as a | 21 | | percentage of the applicable employee payroll, in equal | 22 | | increments calculated from the sum of the required State | 23 | | contribution for State fiscal year 2007 plus the applicable | 24 | | portion of the State's total debt service payments for fiscal | 25 | | year 2007 on the bonds issued for the purposes of Section 7.2 | 26 | | of the General
Obligation Bond Act, so that, by State fiscal |
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| 1 | | year 2011, the
State is contributing at the rate otherwise | 2 | | required under this Section.
| 3 | | (d) For purposes of determining the required State | 4 | | contribution to the System, the value of the System's assets | 5 | | shall be equal to the actuarial value of the System's assets, | 6 | | which shall be calculated as follows: | 7 | | As of June 30, 2008, the actuarial value of the System's | 8 | | assets shall be equal to the market value of the assets as of | 9 | | that date. In determining the actuarial value of the System's | 10 | | assets for fiscal years after June 30, 2008, any actuarial | 11 | | gains or losses from investment return incurred in a fiscal | 12 | | year shall be recognized in equal annual amounts over the | 13 | | 5-year period following that fiscal year. | 14 | | (e) For purposes of determining the required State | 15 | | contribution to the system for a particular year, the actuarial | 16 | | value of assets shall be assumed to earn a rate of return equal | 17 | | to the system's actuarially assumed rate of return. | 18 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | 19 | | 09600SB3514ham003.)
| 20 | | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 21 | | Sec. 18-140. To certify required State contributions and | 22 | | submit vouchers.
| 23 | | (a) The Board shall certify to the Governor, on or before | 24 | | November 15 of
each year, the amount of the required State | 25 | | contribution to the System for the
following fiscal year. The |
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| 1 | | certification shall include a copy of the actuarial
| 2 | | recommendations upon which it is based.
| 3 | | On or before May 1, 2004, the Board shall recalculate and | 4 | | recertify to
the Governor the amount of the required State | 5 | | contribution to the System for
State fiscal year 2005, taking | 6 | | into account the amounts appropriated to and
received by the | 7 | | System under subsection (d) of Section 7.2 of the General
| 8 | | Obligation Bond Act.
| 9 | | On or before July 1, 2005, the Board shall recalculate and | 10 | | recertify
to the Governor the amount of the required State
| 11 | | contribution to the System for State fiscal year 2006, taking | 12 | | into account the changes in required State contributions made | 13 | | by this amendatory Act of the 94th General Assembly.
| 14 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 15 | | recalculate and recertify to the Governor the amount of the | 16 | | required State contribution to the System for State fiscal year | 17 | | 2011, applying the changes made by Public Act 96-889 to the | 18 | | System's assets and liabilities as of June 30, 2009 as though | 19 | | Public Act 96-889 was approved on that date. | 20 | | (b) Beginning in State fiscal year 1996, on or as soon as | 21 | | possible after
the 15th day of each month the Board shall | 22 | | submit vouchers for payment of State
contributions to the | 23 | | System, in a total monthly amount of one-twelfth of the
| 24 | | required annual State contribution certified under subsection | 25 | | (a).
From the effective date of this amendatory Act
of the 93rd | 26 | | General Assembly through June 30, 2004, the Board shall not
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| 1 | | 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 (c) 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.
| 8 | | If in any month the amount remaining unexpended from all | 9 | | other
appropriations to the System for the applicable fiscal | 10 | | year (including the
appropriations to the System under Section | 11 | | 8.12 of the State Finance Act and
Section 1 of the State | 12 | | Pension Funds Continuing Appropriation Act) is less than
the | 13 | | amount lawfully vouchered under this Section, the difference | 14 | | shall be paid
from the General Revenue Fund under the | 15 | | continuing appropriation authority
provided in Section 1.1 of | 16 | | the State Pension Funds Continuing Appropriation
Act.
| 17 | | (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 18 | | eff. 6-1-05; 09600SB3514ham003.)
| 19 | | Section 10. If and only if Senate Bill 3514 (as amended by | 20 | | House Amendment Nos. 3, 4, and 5) becomes law, the State | 21 | | Pension Funds Continuing Appropriation Act is amended by | 22 | | changing Sections 1.1 and 1.2 as follows:
| 23 | | (40 ILCS 15/1.1)
| 24 | | Sec. 1.1. Appropriations to certain retirement systems.
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| 1 | | (a) There is hereby appropriated from the General Revenue | 2 | | Fund to the
General Assembly Retirement System, on a continuing | 3 | | monthly basis, the amount,
if any, by which the total available | 4 | | amount of all other appropriations to that
retirement system | 5 | | for the payment of State contributions is less than the total
| 6 | | amount of the vouchers for required State contributions | 7 | | lawfully submitted by
the retirement system for that month | 8 | | under Section 2-134 of the Illinois
Pension Code.
| 9 | | (b) There is hereby appropriated from the General Revenue | 10 | | Fund to the
State Universities Retirement System, on a | 11 | | continuing monthly basis, the
amount, if any, by which the | 12 | | total available amount of all other appropriations
to that | 13 | | retirement system for the payment of State contributions, | 14 | | including
any deficiency in the required contributions of the | 15 | | optional
retirement program established under Section 15-158.2 | 16 | | of the Illinois Pension
Code,
is less than
the total amount of | 17 | | the vouchers for required State contributions lawfully
| 18 | | submitted by the retirement system for that month under Section | 19 | | 15-165 of the
Illinois Pension Code.
| 20 | | (c) There is hereby appropriated from the Common School | 21 | | Fund to the
Teachers' Retirement System of the State of | 22 | | Illinois,
on a continuing monthly basis, the amount, if any, by | 23 | | which the total
available amount of all other appropriations to | 24 | | that retirement system for the
payment of State contributions | 25 | | is less than the total amount of the vouchers
for required | 26 | | State contributions lawfully submitted by the retirement |
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| 1 | | system
for that month under Section 16-158 of the Illinois | 2 | | Pension Code.
| 3 | | (d) There is hereby appropriated from the General Revenue | 4 | | Fund to the Judges
Retirement System of Illinois, on a | 5 | | continuing monthly basis, the amount, if
any, by which the | 6 | | total available amount of all other appropriations to that
| 7 | | retirement system for the payment of State contributions is | 8 | | less than the total
amount of the vouchers for required State | 9 | | contributions lawfully submitted by
the retirement system for | 10 | | that month under Section 18-140 of the Illinois
Pension Code.
| 11 | | (e) The continuing appropriations provided by this Section | 12 | | shall first
be available in State fiscal year 1996.
| 13 | | (f) For State fiscal year 2010 only, the continuing | 14 | | appropriations provided by this Section are equal to the amount | 15 | | certified by each System on or before December 31, 2008, less | 16 | | (i) the gross proceeds of the bonds sold in fiscal year 2010 | 17 | | under the authorization contained in subsection (a) of Section | 18 | | 7.2 of the General Obligation Bond Act and (ii) any amounts | 19 | | received from the State Pensions Fund. | 20 | | (g) For State fiscal year 2011 only, the continuing | 21 | | appropriations provided by this Section are equal to the amount
| 22 | | certified by each System on or before April 1, 2011 June 15, | 23 | | 2010 , less
(i) the gross proceeds of the bonds sold in fiscal | 24 | | year 2011
under the authorization contained in subsection (a) | 25 | | of Section
7.2 of the General Obligation Bond Act and (ii) any | 26 | | amounts
received from the State Pensions Fund. |
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| 1 | | (Source: P.A. 96-43, eff. 7-15-09; 09600SB3514ham003.)
| 2 | | (40 ILCS 15/1.2)
| 3 | | Sec. 1.2. Appropriations for the State Employees' | 4 | | Retirement System.
| 5 | | (a) From each fund from which an amount is appropriated for | 6 | | personal
services to a department or other employer under | 7 | | Article 14 of the Illinois
Pension Code, there is hereby | 8 | | appropriated to that department or other
employer, on a | 9 | | continuing annual basis for each State fiscal year, an
| 10 | | additional amount equal to the amount, if any, by which (1) an | 11 | | amount equal
to the percentage of the personal services line | 12 | | item for that department or
employer from that fund for that | 13 | | fiscal year that the Board of Trustees of
the State Employees' | 14 | | Retirement System of Illinois has certified under Section
| 15 | | 14-135.08 of the Illinois Pension Code to be necessary to meet | 16 | | the State's
obligation under Section 14-131 of the Illinois | 17 | | Pension Code for that fiscal
year, exceeds (2) the amounts | 18 | | otherwise appropriated to that department or
employer from that | 19 | | fund for State contributions to the State Employees'
Retirement | 20 | | System for that fiscal year.
From the effective
date of this | 21 | | amendatory Act of the 93rd General Assembly
through the final | 22 | | payment from a department or employer's
personal services line | 23 | | item for fiscal year 2004, payments to
the State Employees' | 24 | | Retirement System that otherwise would
have been made under | 25 | | this subsection (a) shall be governed by
the provisions in |
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| 1 | | subsection (a-1).
| 2 | | (a-1) If a Fiscal Year 2004 Shortfall is certified under | 3 | | subsection (f) of
Section 14-131 of the Illinois Pension Code, | 4 | | there is hereby appropriated
to the State Employees' Retirement | 5 | | System of Illinois on a
continuing basis from the General | 6 | | Revenue Fund an additional
aggregate amount equal to the Fiscal | 7 | | Year 2004 Shortfall.
| 8 | | (a-2) If a Fiscal Year 2010 Shortfall is certified under | 9 | | subsection (g) of Section 14-131 of the Illinois Pension Code, | 10 | | there is hereby appropriated to the State Employees' Retirement | 11 | | System of Illinois on a continuing basis from the General | 12 | | Revenue Fund an additional aggregate amount equal to the Fiscal | 13 | | Year 2010 Shortfall. | 14 | | (b) The continuing appropriations provided for by this | 15 | | Section shall first
be available in State fiscal year 1996.
| 16 | | (c) Beginning in Fiscal Year 2005, any continuing | 17 | | appropriation under this Section arising out of an | 18 | | appropriation for personal services from the Road Fund to the | 19 | | Department of State Police or the Secretary of State shall be | 20 | | payable from the General Revenue Fund rather than the Road | 21 | | Fund.
| 22 | | (d) For State fiscal year 2010 only, a continuing | 23 | | appropriation is provided to the State Employees' Retirement | 24 | | System equal to the amount certified by the System on or before | 25 | | December 31, 2008, less the gross proceeds of the bonds sold in | 26 | | fiscal year 2010 under the authorization contained in |
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| 1 | | subsection (a) of Section 7.2 of the General Obligation Bond | 2 | | Act. | 3 | | (e) For State fiscal year 2011 only, a continuing
| 4 | | appropriation is provided to the State Employees' Retirement
| 5 | | System equal to the amount certified by the System on or before
| 6 | | April 1, 2011 June 15, 2010 , less the gross proceeds of the | 7 | | bonds sold in
fiscal year 2011 under the authorization | 8 | | contained in
subsection (a) of Section 7.2 of the General | 9 | | Obligation Bond
Act. | 10 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | 11 | | 09600SB3514ham003.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law or on the effective date of Senate Bill 3514 of | 14 | | the 96th General Assembly, whichever is later. |
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