Full Text of HB5210 97th General Assembly
HB5210sam001 97TH GENERAL ASSEMBLY | Sen. John J. Cullerton Filed: 1/2/2013
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| 1 | | AMENDMENT TO HOUSE BILL 5210
| 2 | | AMENDMENT NO. ______. Amend House Bill 5210 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. If and only if House Bill 1447 of the 97th | 5 | | General Assembly becomes law in the form in which it was passed | 6 | | by the Senate, then the Illinois Pension Code is amended by | 7 | | changing Sections 1-162, 2-107.9, 2-110.3, 2-124, 14-103.42, | 8 | | 14-106.5, and 14-131, as follows: | 9 | | (40 ILCS 5/1-162) | 10 | | Sec. 1-162. Optional cash balance plan. | 11 | | (a) Participation and Applicability. Beginning on July 1, | 12 | | 2013, any Tier I employee who has made the election under | 13 | | paragraph (1) of subsection (a) or (a-5) of Section 14-106.5 | 14 | | the following persons may elect to participate in the optional | 15 | | cash balance plan created under this Section . : | 16 | | (1) any person who participates in the cash balance |
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| 1 | | plan established under Section 1-161; and | 2 | | (2) any Tier I employee who has made the election under | 3 | | paragraph (1) of subsection (a) or (a-5) of Section | 4 | | 14-106.5. | 5 | | The Board of Trustees of the applicable retirement system | 6 | | shall promulgate rules to create an annual election wherein a | 7 | | person eligible to participate in the optional cash balance | 8 | | plan may elect to participate, and an active employee who is a | 9 | | participant in the plan may elect to cease active | 10 | | participation. The election to cease active participation | 11 | | shall not disqualify the employee from eligibility to receive | 12 | | an interest credit under subsection (f), a distribution upon | 13 | | termination under subsection (f-10), a refund under subsection | 14 | | (f-15), a retirement annuity under subsection (f-15), a | 15 | | retirement annuity under subsection (g), or a survivor's | 16 | | survivor annuity under subsection (k), or from eligibility to | 17 | | resume active participation in the optional cash balance plan | 18 | | in a subsequent year. | 19 | | (b) Title. The package of benefits provided under this | 20 | | Section may be referred to as the "optional cash balance plan". | 21 | | Persons subject to the provisions of this Section may be | 22 | | referred to as "participants in the optional cash balance | 23 | | plan". | 24 | | (b-5) Definitions. As used in this Section: | 25 | | "Account" means the notional cash balance account | 26 | | established under this Section for a participant in the |
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| 1 | | optional cash balance plan. | 2 | | "Consumer Price Index-U" means
the Consumer Price Index | 3 | | published by the Bureau of Labor Statistics of the United | 4 | | States
Department of Labor that measures the average change in | 5 | | prices of goods and
services purchased by all urban consumers, | 6 | | United States city average, all
items, 1982-84 = 100. | 7 | | "Salary" means "compensation" as defined in Article 14, | 8 | | without regard to the limitation in subsection (b-5) of Section | 9 | | 1-160. | 10 | | "Tier I employee" means a person who is a Tier I employee | 11 | | under the applicable Article of this Code. | 12 | | (c) Cash Balance Account. A notional cash balance account | 13 | | shall be established by the applicable retirement system for | 14 | | each participant in the optional cash balance plan. The account | 15 | | is notional and does not contain any actual money segregated | 16 | | from the commingled assets of the retirement system. The cash | 17 | | balance in the account is to be used in calculating benefits as | 18 | | provided in this Section, but is not to be used in the | 19 | | calculation of any refund, transfer, or other benefit under the | 20 | | applicable Article of this Code. | 21 | | The amounts to be credited to the cash balance account | 22 | | shall consist of (i) amounts contributed by or on behalf of the | 23 | | participant as employee contributions, (ii) notional employer | 24 | | contributions, and (iii) interest credit that is attributable | 25 | | to the account, all as provided in this Section. | 26 | | Whenever necessary for the prompt calculation or |
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| 1 | | administration, or when the System lacks information necessary | 2 | | to the calculation or administration otherwise required of or | 3 | | for a benefit under this Section, the applicable retirement | 4 | | system may estimate an amount to be credited to or debited from | 5 | | a participant's cash balance account and then adjust the amount | 6 | | so credited or debited when more accurate information becomes | 7 | | available. | 8 | | The applicable retirement system shall give to each | 9 | | participant in the optional cash balance plan who has not yet | 10 | | retired annual notice of (1) the balance in the participant's | 11 | | cash balance account and (2) an estimate of the retirement | 12 | | annuity that will be payable to the participant if he or she | 13 | | retires at age 59 1/2. | 14 | | (d) Employee Contributions. In addition to the other | 15 | | contributions required under the applicable Article, each | 16 | | participant shall make contributions to the applicable | 17 | | retirement system at the rate of 2% of each payment of salary. | 18 | | The amount of each contribution shall be credited to the | 19 | | participant's cash balance account upon receipt and after the | 20 | | retirement system's reconciliation of the contribution. | 21 | | (e) Optional Employer Contributions. Employers may make
| 22 | | optional additional contributions to the applicable retirement | 23 | | system on behalf of their employees who are participants in the | 24 | | optional cash balance plan in accordance with procedures | 25 | | prescribed by the retirement system, to
the extent permitted by | 26 | | federal law and the rules prescribed by the retirement system. |
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| 1 | | The optional additional contributions under this subsection | 2 | | are actual monetary contributions to the retirement system, and | 3 | | the amount of each optional additional contribution shall be | 4 | | credited to the participant's cash balance account upon receipt | 5 | | and after the retirement system's reconciliation of the | 6 | | contribution. | 7 | | (f) Interest Credit. An amount representing earnings on | 8 | | investments shall be determined by the retirement system in | 9 | | accordance with this Section and credited to the participant's | 10 | | cash balance account for each fiscal year in which there is a | 11 | | positive balance in that account; except that no additional | 12 | | interest credit shall be credited while an annuity based on the | 13 | | account is being paid. The interest credit amount shall be a | 14 | | percentage of the average quarterly balance in the cash balance | 15 | | account during that fiscal year, and shall be calculated on | 16 | | June 30. | 17 | | The percentage shall be the assumed treasury rate for the | 18 | | previous fiscal year, unless neither the retirement system's | 19 | | actual rate of investment earnings for the previous fiscal year | 20 | | nor the retirement system's actual rate of investment earnings | 21 | | for the five-year period ending at the end of the previous | 22 | | fiscal year is less than the assumed treasury rate. | 23 | | If both the retirement system's actual rate of investment | 24 | | earnings for the previous fiscal year and the actual rate of | 25 | | investment earnings for the five-year period ending at the end | 26 | | of the previous fiscal year are at least the assumed treasury |
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| 1 | | rate, then the percentage shall be: | 2 | | (i) the assumed treasury rate, plus | 3 | | (ii) two-thirds of the amount of the actual rate of | 4 | | investment earnings for the previous fiscal year that | 5 | | exceeds the assumed treasury rate. | 6 | | However, in no event shall the percentage applied under this | 7 | | subsection exceed 10%. | 8 | | For the purposes of this subsection only, "previous fiscal | 9 | | year" means fiscal year ending one year before the interest | 10 | | rate is calculated. | 11 | | For the purposes of this subsection only, "assumed treasury | 12 | | rate" means the average annual yield of the 30-year U.S. | 13 | | Treasury Bond over the previous fiscal year, but not less than | 14 | | 4%. | 15 | | When a person applies for a benefit under this Section, the | 16 | | retirement system shall apply an interest credit based on a | 17 | | proration of an estimate of what the interest credit will be | 18 | | for the relevant year. When the retirement system certifies the | 19 | | credit on June 30, it shall adjust the benefit accordingly. | 20 | | (f-10) Distribution upon Termination of Employment. Upon | 21 | | termination of active employment with at least 5 years of | 22 | | service credit under the applicable retirement system and prior | 23 | | to making application for an annuity under this Section, a | 24 | | participant in the optional cash balance plan may make an | 25 | | irrevocable election to distribute an amount not to exceed 40% | 26 | | of the balance in the participant's account in the form of a |
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| 1 | | direct rollover to another qualified plan, to the extent | 2 | | allowed by federal law. If the participant makes such an | 3 | | election, then the amount distributed shall be debited from the | 4 | | participant's cash balance account. A participant in the | 5 | | optional cash balance plan shall be allowed only one | 6 | | distribution under this subsection. The remaining balance in | 7 | | the participant's account shall be used for the determination | 8 | | of other benefits provided under this Section. | 9 | | (f-15) Refund. In lieu of receiving a distribution under | 10 | | subsection (f-10), at any time after terminating active | 11 | | employment under the applicable retirement system, but before | 12 | | receiving a retirement annuity under this Section, a | 13 | | participant in the optional cash balance plan may elect to | 14 | | receive a refund under this subsection. The refund shall | 15 | | consist of an amount equal to the amount of all employee | 16 | | contributions credited to the participant's account, but shall | 17 | | not include any interest credit or employer contributions. If | 18 | | the participant so requests, the refund may be paid in the form | 19 | | of a direct rollover to another qualified plan, to the extent | 20 | | allowed by federal law and in accordance with the rules of the | 21 | | applicable retirement system. Upon payment of the refund, the | 22 | | participant's notional cash balance account shall be closed. | 23 | | (g) Retirement Annuity. A participant in the optional cash | 24 | | balance plan may begin collecting a retirement annuity at age | 25 | | 59 1/2, but no earlier than the date of termination of active | 26 | | employment under the applicable retirement system. |
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| 1 | | The amount of the retirement annuity shall be calculated by | 2 | | the retirement system, based on the balance in the cash balance | 3 | | account, the assumption of future investment returns as | 4 | | specified in this subsection, the participant's election to | 5 | | have a lifetime survivor's annuity as specified in this | 6 | | subsection, the annual increase in retirement annuity as | 7 | | specified in subsection (h), the annual increase in survivor's | 8 | | annuity as specified in subsection (l), and any actuarial | 9 | | assumptions and tables adopted by the board of the retirement | 10 | | system for this purpose. The calculation shall determine the | 11 | | amount of retirement annuity, on an actuarially equivalent | 12 | | basis, that shall be designed to result in the balance in the | 13 | | participant's account arriving at zero on the date when the | 14 | | last payment of the retirement annuity (or survivor's annuity, | 15 | | if the participant elects to provide for a survivor's annuity | 16 | | pursuant to this subsection) is anticipated to be paid under | 17 | | the relevant actuarial assumptions. A retirement annuity or a | 18 | | survivor's annuity provided under this Section shall be a life | 19 | | annuity and shall not expire if the account balance equals | 20 | | zero. | 21 | | The annuity payment shall begin on the date specified by | 22 | | the participant submitting a written application, which date | 23 | | shall not be prior to termination of employment or more than | 24 | | one year before the application is received by the board; | 25 | | however, if the participant is not an employee of an employer | 26 | | participating in this System or in a participating system as |
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| 1 | | defined in Article 20 of this Code on April 1 of the calendar | 2 | | year next following the calendar year in which the participant | 3 | | attains age 70 1/2, the annuity payment period shall begin on | 4 | | that date regardless of whether an application has been filed. | 5 | | The participant may elect, under the participant's written | 6 | | application for retirement, to receive a reduced annuity | 7 | | payable for his or her life and to have a lifetime survivor's | 8 | | annuity in a monthly amount equal to 50%, 75%, or 100% of that | 9 | | reduced monthly amount, to be paid after the participant's | 10 | | death to his or her eligible survivor. Eligibility for a | 11 | | survivor's annuity shall be determined under the applicable | 12 | | Article of this Code. | 13 | | For the purpose of calculating retirement annuities, | 14 | | future investment returns shall be assumed to be a percentage | 15 | | equal to the average yield of the 30-year U.S. Treasury Bond | 16 | | over the 5 fiscal years prior to the calculation of the initial | 17 | | retirement annuity, plus 250 basis points; but not less than 4% | 18 | | nor more than 8%. | 19 | | (h) Annual Increase in Retirement Annuity. The retirement | 20 | | annuity shall be subject to an automatic annual increase in an | 21 | | amount equal to 3% of the originally granted annuity on each | 22 | | January 1 occurring on or after the first anniversary of the | 23 | | annuity start date. | 24 | | (i) Disability Benefits. There are no disability benefits | 25 | | provided under the optional cash balance plan, and no amounts | 26 | | for disability shall be deducted from the account of a |
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| 1 | | participant in the optional cash balance plan. The disability | 2 | | benefits provided under the applicable retirement system apply | 3 | | to participants in the optional cash balance plan. | 4 | | (j) Return to Service. Upon a return to service under the | 5 | | same retirement system after beginning to receive a retirement | 6 | | annuity under the optional cash balance plan, the retirement | 7 | | annuity shall be suspended and active participation in the | 8 | | optional cash balance plan shall resume. Upon termination of | 9 | | the employment, the retirement annuity shall resume in an | 10 | | amount to be recalculated in accordance with subsection (g), | 11 | | taking into effect the changes in the cash balance account. If | 12 | | a retired annuitant returns to service, his or her notional | 13 | | cash balance account shall be decreased by each payment of | 14 | | retirement annuity prior to the return to service. | 15 | | (k) Survivor's Annuity - Death before Retirement. In the | 16 | | case of a participant in the optional cash balance plan who had | 17 | | less than 5 years of service under the applicable Article and | 18 | | had not begun receiving a retirement annuity, the eligible | 19 | | survivor shall be entitled only to a refund of employee | 20 | | contributions under subsection (f-15). | 21 | | In the case of a participant in the optional cash balance | 22 | | plan who had at least 5 years of service under the applicable | 23 | | Article and had not begun receiving a retirement annuity, the | 24 | | eligible survivor shall be entitled to receive a survivor's | 25 | | annuity beginning at age 59 1/2 upon written application. The | 26 | | survivor's annuity shall be calculated in the same manner as a |
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| 1 | | retirement annuity under subsection (g). At any time before | 2 | | receiving a survivor's annuity, the eligible survivor may claim | 3 | | a distribution under subsection (f-10) or a refund under | 4 | | subsection (f-15). The deceased participant's account shall | 5 | | continue to receive interest credit until the eligible survivor | 6 | | begins to receive a survivor's annuity or receives a refund of | 7 | | employee contributions under subsection (f-15). | 8 | | Eligibility for a survivor's annuity shall be determined | 9 | | under the applicable Article of this Code. A child's or | 10 | | parent's annuity for an otherwise eligible child or dependent | 11 | | parent shall be in the same amount, if any, prescribed under | 12 | | the applicable Article. | 13 | | (l) Annual Increase in Survivor's Annuity. A survivor's | 14 | | annuity granted under subsection (g) or (k) shall be subject to | 15 | | an automatic annual increase in an amount equal to 3% of the | 16 | | originally granted annuity on each January 1 occurring on or | 17 | | after the first anniversary of the annuity start date. | 18 | | (m) Applicability of Provisions. The following provisions, | 19 | | if and as they exist in this Code, do not apply to participants | 20 | | in the optional cash balance plan with respect to participation | 21 | | in the optional cash balance plan, except as they are | 22 | | specifically provided for in this Section: | 23 | | (1) minimum service or vesting requirements (other | 24 | | than as provided in this Section); | 25 | | (2) provisions limiting a retirement annuity to a | 26 | | specified percentage of salary; |
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| 1 | | (3) provisions authorizing a minimum retirement or | 2 | | survivor's annuity or a supplemental annuity; | 3 | | (4) provisions authorizing any form of retirement | 4 | | annuity or survivor's annuity not authorized under this | 5 | | Section; | 6 | | (5) provisions authorizing a reversionary annuity | 7 | | (other than the survivor's annuity under subsection (g)); | 8 | | (6) provisions authorizing a refund of employee | 9 | | contributions upon termination of service (other than upon | 10 | | the death of the participant without an eligible survivor) | 11 | | or any lump-sum payout in lieu of a retirement or | 12 | | survivor's annuity (other than the distribution under | 13 | | subsection (f-10) or the refund under subsection (f-15) of | 14 | | this Section ) ; | 15 | | (7) provisions authorizing optional service credits or | 16 | | the payment of optional additional contributions (other | 17 | | than the optional employer contributions specifically | 18 | | authorized in this Section); or | 19 | | (8) a level income option. | 20 | | The Retirement Systems Reciprocal Act (Article 20 of this | 21 | | Code) does not apply to participation in the optional cash | 22 | | balance plan and does not affect the calculation of benefits | 23 | | payable under this Section. | 24 | | The other provisions of this Code continue to apply to | 25 | | participants in the optional cash balance plan, to the extent | 26 | | that they do not conflict with this Section. In the case of a |
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| 1 | | conflict between the provisions of this Section and any other | 2 | | provision of this Code, the provisions of this Section control. | 3 | | (n) Rules. The Board of Trustees of the applicable | 4 | | retirement system may adopt rules and procedures for the | 5 | | implementation of this Section, including but not limited to | 6 | | determinations of how to integrate the administration of this | 7 | | Section with the requirements of the applicable Article and any | 8 | | other applicable provisions of this Code. | 9 | | (o) Public Pension Division. The Public Pension Division of | 10 | | the Department of Insurance shall determine in October of each | 11 | | year the annual unadjusted percentage increase (but not less | 12 | | than zero) in the Consumer Price Index-U
for the 12 months | 13 | | ending with the preceding September. The Division shall certify | 14 | | its determination to the Board of Trustees of the State | 15 | | Universities Retirement System by November 1 of each year.
| 16 | | (o) (p) Actual Employer Contributions. Payment of employer | 17 | | contributions with respect to participants in the optional cash | 18 | | balance plan shall be the responsibility of the actual | 19 | | employer. These contributions shall be determined under and | 20 | | paid in accordance with the provisions of Sections 15-155. | 21 | | Optional additional contributions by employers may be paid in | 22 | | any amount, but must be paid in the manner specified by the | 23 | | applicable retirement system. | 24 | | (p) (q) Prospective Modification. The provisions set forth | 25 | | in this Section are subject to prospective changes made by law | 26 | | provided that any such changes shall not apply to any benefits |
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| 1 | | accrued under this Section prior to the effective date of any | 2 | | amendatory Act of the General Assembly. | 3 | | (q) (s) Qualified Plan Status. No provision of this Section | 4 | | shall be interpreted in a way that would cause the applicable | 5 | | retirement system to cease to be a qualified plan under Section | 6 | | 401(a) section 461 (a) of the Internal Revenue Code of 1986.
| 7 | | (Source: 09700HB1447sam002.) | 8 | | (40 ILCS 5/2-107.9) | 9 | | Sec. 2-107.9. Future increase in income. "Future increase | 10 | | in income": Any increase in income in any form offered for | 11 | | service as a member under this Article after December 31 June | 12 | | 30 , 2013 that would qualify as "salary", as defined under | 13 | | Section 2-108, but for the fact that the increase in income was | 14 | | offered to the member on the condition that it not qualify as | 15 | | salary and was accepted by the member subject to that | 16 | | condition.
| 17 | | (Source: 09700HB1447sam002.) | 18 | | (40 ILCS 5/2-110.3) | 19 | | Sec. 2-110.3. Election by Tier I employees and Tier I | 20 | | retirees. | 21 | | (a) Each Tier I employee shall make an irrevocable election | 22 | | either: | 23 | | (1) to agree to the following: | 24 | | (i) to have the amount of the automatic annual |
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| 1 | | increases in his or her retirement annuity that are | 2 | | otherwise provided for in this Article calculated, | 3 | | instead, as provided in subsection (a-1) of Section | 4 | | 2-119.1; and | 5 | | (ii) to have his or her eligibility for automatic | 6 | | annual increases in retirement annuity postponed as | 7 | | provided in subsection (a-2) of Section 2-119.1 and to | 8 | | relinquish the additional increases provided in | 9 | | subsection (b) of Section 2-119.1; or | 10 | | (2) to not agree to items (i) and (ii) as set forth in | 11 | | paragraph (1) of this subsection. | 12 | | The election required under this subsection (a) shall be | 13 | | made by each Tier I employee no earlier than July January 1, | 14 | | 2013 and no later than November 30 May 31 , 2013, except that: | 15 | | (i) a person who becomes a Tier I employee under this | 16 | | Article after July January 1, 2013 must make the election | 17 | | under this subsection (a) within 60 days after becoming a | 18 | | Tier I employee; | 19 | | (ii) a person who returns to active service as a Tier I | 20 | | employee under this Article after July January 1, 2013 and | 21 | | has not yet made an election under this Section must make | 22 | | the election under this subsection (a) within 60 days after | 23 | | returning to active service as a Tier I employee; and | 24 | | (iii) a person who made the election under subsection | 25 | | (a-5) as a Tier I retiree remains bound by that election | 26 | | and shall not make a later election under this subsection |
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| 1 | | (a). | 2 | | If a Tier I employee fails for any reason to make a | 3 | | required election under this subsection within the time | 4 | | specified, then the employee shall be deemed to have made the | 5 | | election under paragraph (2) of this subsection. | 6 | | (a-5) Each Tier I retiree shall make an irrevocable | 7 | | election either: | 8 | | (1) to agree to the following: | 9 | | (i) to have the amount of the automatic annual | 10 | | increases in his or her retirement annuity that are | 11 | | otherwise provided for in this Article calculated, | 12 | | instead, as provided in subsection (a-1) of Section | 13 | | 2-119.1; and | 14 | | (ii) to have his or her eligibility for automatic | 15 | | annual increases in retirement annuity postponed as | 16 | | provided in subsection (a-2) of Section 2-119.1 and to | 17 | | relinquish the additional increases provided in | 18 | | subsection (b) of Section 2-119.1; or | 19 | | (2) to not agree to items (i) and (ii) as set forth in | 20 | | paragraph (1) of this subsection. | 21 | | The election required under this subsection (a-5) shall be | 22 | | made by each Tier I retiree no earlier than July January 1, | 23 | | 2013 and no later than November 30 May 31 , 2013, except that: | 24 | | (i) a person who becomes a Tier I retiree under this | 25 | | Article on or after July January 1, 2013 must make the | 26 | | election under this subsection (a-5) within 60 days after |
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| 1 | | becoming a Tier I retiree; and | 2 | | (ii) a person who made the election under subsection | 3 | | (a) as a Tier I employee remains bound by that election and | 4 | | shall not make a later election under this subsection | 5 | | (a-5). | 6 | | If a Tier I retiree fails for any reason to make a required | 7 | | election under this subsection within the time specified, then | 8 | | the Tier I retiree shall be deemed to have made the election | 9 | | under paragraph (2) of this subsection. | 10 | | (a-10) All elections under subsection (a) or (a-5) that are | 11 | | made or deemed to be made before December June 1, 2013 shall | 12 | | take effect on January July 1, 2014 2013 . Elections that are | 13 | | made or deemed to be made on or after December June 1, 2013 | 14 | | shall take effect on the first day of the month following the | 15 | | month in which the election is made or deemed to be made. | 16 | | (b) As adequate and legal consideration provided under this | 17 | | amendatory Act of the 97th General Assembly for making the | 18 | | election under paragraph (1) of subsection (a) of this Section, | 19 | | any future increases in income offered for service as a member | 20 | | under this Article to a Tier I employee who has made the | 21 | | election under paragraph (1) of subsection (a) of this Section | 22 | | shall be offered expressly and irrevocably as constituting | 23 | | salary under Section 2-108. | 24 | | As adequate and legal consideration provided under this | 25 | | amendatory Act of the 97th General Assembly for making the | 26 | | election under paragraph (1) of subsection (a-5) of this |
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| 1 | | Section, any future increases in income offered for service as | 2 | | a member under this Article to a Tier I retiree who returns to | 3 | | active service after having made the election under paragraph | 4 | | (1) of subsection (a-5) of this Section shall be offered | 5 | | expressly and irrevocably as constituting salary under Section | 6 | | 2-108. | 7 | | (c) A Tier I employee who makes the election under | 8 | | paragraph (2) of subsection (a) of this Section shall not be | 9 | | subject to items (i) and (ii) set forth in paragraph (1) of | 10 | | subsection (a) of this Section. However, any future increases | 11 | | in income offered for service as a member under this Article to | 12 | | a Tier I employee who has made the election under paragraph (2) | 13 | | of subsection (a) of this Section shall be offered expressly | 14 | | and irrevocably as not constituting salary under Section 2-108, | 15 | | and the member may not accept any future increase in income | 16 | | that is offered in violation of this requirement. | 17 | | A Tier I retiree who makes the election under paragraph (2) | 18 | | of subsection (a-5) of this Section shall not be subject to | 19 | | items (i) and (ii) set forth in paragraph (1) of subsection | 20 | | (a-5) of this Section. However, any future increases in income | 21 | | offered for service as a member under this Article to a Tier I | 22 | | retiree who returns to active service and has made the election | 23 | | under paragraph (2) of subsection (a-5) of this Section shall | 24 | | be offered expressly and irrevocably as not constituting salary | 25 | | under Section 2-108, and the member may not accept any future | 26 | | increase in income that is offered in violation of this |
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| 1 | | requirement. | 2 | | (d) The System shall make a good faith effort to contact | 3 | | each Tier I employee and Tier I retiree subject to this | 4 | | Section. The System shall mail information describing the | 5 | | required election to each Tier I employee and Tier I retiree by | 6 | | United States Postal Service mail to his or her last known | 7 | | address on file with the System. If the Tier I employee or Tier | 8 | | I retiree is not responsive to other means of contact, it is | 9 | | sufficient for the System to publish the details of any | 10 | | required elections on its website or to publish those details | 11 | | in a regularly published newsletter or other existing public | 12 | | forum. | 13 | | Tier I employees and Tier I retirees who are subject to | 14 | | this Section shall be provided with an election packet | 15 | | containing information regarding their options, as well as the | 16 | | forms necessary to make the required election. Upon request, | 17 | | the System shall offer Tier I employees and Tier I retirees an | 18 | | opportunity to receive information from the System before | 19 | | making the required election. The information may be provided | 20 | | through video materials, group presentations, individual | 21 | | consultation with a member or authorized representative of the | 22 | | System in person or by telephone or other electronic means, or | 23 | | any combination of those methods. The System shall not provide | 24 | | advice or counseling with respect to which election a Tier I | 25 | | employee or Tier I retiree should make or specific to the legal | 26 | | or tax circumstances of or consequences to the Tier I employee |
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| 1 | | or Tier I retiree. | 2 | | The System shall inform Tier I employees and Tier I | 3 | | retirees in the election packet required under this subsection | 4 | | that the Tier I employee or Tier I retiree may also wish to | 5 | | obtain information and counsel relating to the election | 6 | | required under this Section from any other available source, | 7 | | including but not limited to labor organizations and private | 8 | | counsel. | 9 | | In no event shall the System, its staff, or the Board be | 10 | | held liable for any information given to a member, beneficiary, | 11 | | or annuitant regarding the elections under this Section. The | 12 | | System shall coordinate with the Illinois Department of Central | 13 | | Management Services and each other retirement system | 14 | | administering an election in accordance with this amendatory | 15 | | Act of the 97th General Assembly to provide information | 16 | | concerning the impact of the election set forth in this | 17 | | Section. | 18 | | (e) Notwithstanding any other provision of law, any future | 19 | | increases in income offered for service as a member must be | 20 | | offered expressly and irrevocably as not constituting "salary" | 21 | | under Section 2-108 to any Tier I employee, or Tier I retiree | 22 | | returning to active service, who has made an election under | 23 | | paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A | 24 | | Tier I employee, or Tier I retiree returning to active service, | 25 | | who has made an election under paragraph (2) or subsection (a) | 26 | | or (a-5) of Section 2-110.3 shall not accept any future |
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| 1 | | increase in income that is offered for service as a member | 2 | | under this Article in violation of the requirement set forth in | 3 | | this subsection. | 4 | | (f) A member's election under this Section is not a | 5 | | prohibited election under subdivision (j)(1) of Section 1-119 | 6 | | of this Code. | 7 | | (g) Qualified Plan Status. No provision of this Section | 8 | | shall be interpreted in a way that would cause the System to | 9 | | cease to be a qualified plan under Section 401(a) section 461 | 10 | | (a) of the Internal Revenue Code of 1986.
| 11 | | (h) If this Section is determined to be unconstitutional or | 12 | | otherwise invalid by a final unappealable decision of an | 13 | | Illinois court or a court of competent jurisdiction as applied | 14 | | to Tier I employees but not as applied to Tier I retirees, then | 15 | | this Section and the changes deriving from the election | 16 | | required under this Section shall be null and void as applied | 17 | | to Tier I employees but shall remain in full effect for Tier I | 18 | | retirees. | 19 | | (i) If this Section is determined to be unconstitutional or | 20 | | otherwise invalid by a final unappealable decision of an | 21 | | Illinois court or a court of competent jurisdiction as applied | 22 | | to Tier I retirees but not as applied to Tier I employees, then | 23 | | this Section and the changes deriving from the election | 24 | | required under this Section shall be null and void as applied | 25 | | to Tier I retirees but shall remain in full effect for Tier I | 26 | | employees. |
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| 1 | | (j) If Section 14-106.5 of this Code or any change deriving | 2 | | from the election required under that Section is determined to | 3 | | be unconstitutional or otherwise invalid by a final | 4 | | unappealable decision of an Illinois court or a court of | 5 | | competent jurisdiction, the invalidity of that provision shall | 6 | | not in any way affect the validity of this Section or the | 7 | | changes deriving from the election required under this Section. | 8 | | (Source: 09700HB1447sam002.)
| 9 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 10 | | Sec. 2-124. Contributions by State.
| 11 | | (a) Except as otherwise provided in this Section, the State | 12 | | shall make contributions to the System by
appropriations of | 13 | | amounts which, together with the contributions of
| 14 | | participants, interest earned on investments, and other income
| 15 | | will meet the cost of maintaining and administering the System | 16 | | on a 90%
funded basis in accordance with actuarial | 17 | | recommendations.
| 18 | | (b) The Board shall determine the amount of State
| 19 | | contributions required for each fiscal year on the basis of the
| 20 | | actuarial tables and other assumptions adopted by the Board and | 21 | | the
prescribed rate of interest, using the formula in | 22 | | subsection (c).
| 23 | | (c) Except as otherwise provided in this Section, for State | 24 | | fiscal years 2012 through 2045, the minimum contribution
to the | 25 | | System to be made by the State for each fiscal year shall be an |
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| 1 | | amount
determined by the System to be sufficient to bring the | 2 | | total assets of the
System up to 90% of the total actuarial | 3 | | liabilities of the System by the end of
State fiscal year 2045. | 4 | | In making these determinations, the required State
| 5 | | contribution shall be calculated each year as a level | 6 | | percentage of payroll
over the years remaining to and including | 7 | | fiscal year 2045 and shall be
determined under the projected | 8 | | 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 | | pursuant to Section 2-134 and shall be made from the proceeds | 14 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 15 | | the General
Obligation Bond Act, less (i) the pro rata share of | 16 | | bond sale
expenses determined by the System's share of total | 17 | | bond
proceeds, (ii) any amounts received from the General | 18 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 19 | | bond
proceeds due to the issuance of discounted bonds, if
| 20 | | applicable. | 21 | | Except as otherwise provided in this Section, beginning in | 22 | | State fiscal year 2046, the minimum State contribution for
each | 23 | | fiscal year shall be the amount needed to maintain the total | 24 | | assets of
the System at 90% of the total actuarial liabilities | 25 | | of the System.
| 26 | | Amounts received by the System pursuant to Section 25 of |
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| 1 | | the Budget Stabilization Act or Section 8.12 of the State | 2 | | Finance Act in any fiscal year do not reduce and do not | 3 | | constitute payment of any portion of the minimum State | 4 | | contribution required under this Article in that fiscal year. | 5 | | Such amounts shall not reduce, and shall not be included in the | 6 | | calculation of, the required State contributions under this | 7 | | Article in any future year until the System has reached a | 8 | | funding ratio of at least 90%. A reference in this Article to | 9 | | the "required State contribution" or any substantially similar | 10 | | term does not include or apply to any amounts payable to the | 11 | | System under Section 25 of the Budget Stabilization Act.
| 12 | | Notwithstanding any other provision of this Section, the | 13 | | required State
contribution for State fiscal year 2005 and for | 14 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 15 | | under this Section and
certified under Section 2-134, shall not | 16 | | exceed an amount equal to (i) the
amount of the required State | 17 | | contribution that would have been calculated under
this Section | 18 | | for that fiscal year if the System had not received any | 19 | | payments
under subsection (d) of Section 7.2 of the General | 20 | | Obligation Bond Act, minus
(ii) the portion of the State's | 21 | | total debt service payments for that fiscal
year on the bonds | 22 | | issued in fiscal year 2003 for the purposes of that Section | 23 | | 7.2, as determined
and certified by the Comptroller, that is | 24 | | the same as the System's portion of
the total moneys | 25 | | distributed under subsection (d) of Section 7.2 of the General
| 26 | | Obligation Bond Act. In determining this maximum for State |
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| 1 | | fiscal years 2008 through 2010, however, the amount referred to | 2 | | in item (i) shall be increased, as a percentage of the | 3 | | applicable employee payroll, in equal increments calculated | 4 | | from the sum of the required State contribution for State | 5 | | fiscal year 2007 plus the applicable portion of the State's | 6 | | total debt service payments for fiscal year 2007 on the bonds | 7 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 8 | | the General
Obligation Bond Act, so that, by State fiscal year | 9 | | 2011, the
State is contributing at the rate otherwise required | 10 | | under this Section.
| 11 | | (c-1) If at least 50% of Tier I employees making an | 12 | | election under Section 2-110.3 before December 1, 2013 choose | 13 | | the option under paragraph (1) of subsection (a) of that | 14 | | Section, then beginning in State fiscal year 2015, instead of | 15 | | the contributions specified in subsection (c) of this Section, | 16 | | the State contributions specified in subsection (c-3) of this | 17 | | Section shall be paid. | 18 | | In making its initial certification of the annual required | 19 | | contribution by the State for State fiscal year 2015, the Board | 20 | | shall assume that the new funding formula provided in | 21 | | subsection (c-3) of this Section applies. If fewer than 50% of | 22 | | Tier I employees making an election under Section 2-110.3 | 23 | | before December 1, 2013 choose the option under paragraph (1) | 24 | | of subsection (a) of that Section, then: | 25 | | (1) Instead of the contributions specified in | 26 | | subsection (c-3) of this Section, the State contributions |
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| 1 | | specified in subsection (c) shall continue to be paid. | 2 | | (2) The Board shall, if necessary, promptly recertify | 3 | | the annual required contribution by the State for the | 4 | | affected State fiscal year. | 5 | | (c-3) As provided in subsection (c-1), in lieu of the State | 6 | | contributions required under subsection (c): | 7 | | (1) For State fiscal years 2015 through 2044, the | 8 | | minimum contribution
to the System to be made by the State | 9 | | for each fiscal year shall be an amount
determined by the | 10 | | System to be equal to the sum of (1) the State's portion of | 11 | | the projected normal cost for that fiscal year, plus (2) an | 12 | | amount sufficient to bring the total assets of the
System | 13 | | up to 100% of the total actuarial liabilities of the System | 14 | | by the end of
State fiscal year 2044. In making these | 15 | | determinations, the required State
contribution shall be | 16 | | calculated each year as a level percentage of payroll
over | 17 | | the years remaining to and including fiscal year 2044 and | 18 | | shall be
determined under the projected unit credit | 19 | | actuarial cost method. | 20 | | (2) Beginning in State fiscal year 2045, the minimum | 21 | | State contribution for each fiscal year shall be the amount | 22 | | needed to maintain the total assets of the System at 100% | 23 | | of the total actuarial liabilities of the System. | 24 | | (c-5) Notwithstanding subsection (c-1), if the Tier I | 25 | | employee or Tier I retiree elections under Section 2-110.3, or | 26 | | any of the consequences that are expressly dependent upon |
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| 1 | | either of those elections, are determined to be | 2 | | unconstitutional or otherwise invalid on appeal by a final | 3 | | unappealable decision of an Illinois court or a court of | 4 | | competent jurisdiction, other than as applied to a particular | 5 | | individual or circumstance, then: | 6 | | (1) Beginning with the next fiscal year after the date | 7 | | of that final decision, the annual required contribution to | 8 | | the System to be made by the State shall be determined | 9 | | under subsection (c) of this Section. | 10 | | (2) The Board shall, if necessary, promptly recertify | 11 | | the annual required contribution by the State for that next | 12 | | State fiscal year. | 13 | | (c-1) If at least 50% of Tier I employees making an | 14 | | election under Section 2-110.3 before June 1, 2013 choose the | 15 | | option under paragraph (1) of subsection (a) of that Section, | 16 | | then: | 17 | | (1) In lieu of the State contributions required under | 18 | | subsection (c), for State fiscal years 2014 through 2043 | 19 | | the minimum contribution
to the System to be made by the | 20 | | State for each fiscal year shall be an amount
determined by | 21 | | the System to be equal to the sum of (1) the State's | 22 | | portion of the projected normal cost for that fiscal year, | 23 | | plus (2) an amount sufficient to bring the total assets of | 24 | | the
System up to 100% of the total actuarial liabilities of | 25 | | the System by the end of
State fiscal year 2043. In making | 26 | | these determinations, the required State
contribution |
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| 1 | | shall be calculated each year as a level percentage of | 2 | | payroll
over the years remaining to and including fiscal | 3 | | year 2043 and shall be
determined under the projected unit | 4 | | credit actuarial cost method. | 5 | | (2) Beginning in State fiscal year 2043, the minimum | 6 | | State contribution for each fiscal year shall be the amount | 7 | | needed to maintain the total assets of the System at 100% | 8 | | of the total actuarial liabilities of the System. | 9 | | (c-2) If less than 50% of Tier I employees making an | 10 | | election under Section 2-110.3 before June 1, 2013 choose the | 11 | | option under paragraph (1) of subsection (a) of that Section, | 12 | | then the annual required contribution to the System to be made | 13 | | by the State shall be determined under subsection (c) of this | 14 | | Section, instead of the annual required contribution otherwise | 15 | | specified in subsection (c-1) of this Section. | 16 | | (d) For purposes of determining the required State | 17 | | contribution to the System, the value of the System's assets | 18 | | shall be equal to the actuarial value of the System's assets, | 19 | | which shall be calculated as follows: | 20 | | As of June 30, 2008, the actuarial value of the System's | 21 | | assets shall be equal to the market value of the assets as of | 22 | | that date. In determining the actuarial value of the System's | 23 | | assets for fiscal years after June 30, 2008, any actuarial | 24 | | gains or losses from investment return incurred in a fiscal | 25 | | year shall be recognized in equal annual amounts over the | 26 | | 5-year period following that fiscal year. |
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| 1 | | (e) For purposes of determining the required State | 2 | | contribution to the system for a particular year, the actuarial | 3 | | value of assets shall be assumed to earn a rate of return equal | 4 | | to the system's actuarially assumed rate of return. | 5 | | (Source: 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, | 6 | | eff. 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11; | 7 | | 09700HB1447sam002.)
| 8 | | (40 ILCS 5/14-103.42) | 9 | | Sec. 14-103.42. Future increase in income. "Future | 10 | | increase in income": Any increase in income in any form offered | 11 | | by a department to an employee under this Article after | 12 | | December 31 June 30 , 2013 that would qualify as "compensation", | 13 | | as defined under Section 14-103.10, but for the fact that the | 14 | | department offered the increase in income to the employee on | 15 | | the condition that it not qualify as compensation and the | 16 | | employee accepted the increase in income subject to that | 17 | | condition. The term "future increase in income" does not | 18 | | include an increase in income in any form that is paid to a | 19 | | Tier I employee under an employment contract or collective | 20 | | bargaining agreement that is in effect on the effective date of | 21 | | this Section but does include an increase in income in any form | 22 | | pursuant to an extension, amendment, or renewal of any such | 23 | | employment contract or collective bargaining agreement on or | 24 | | after the effective date of this amendatory Act of the 97th | 25 | | General Assembly.
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| 1 | | (Source: 09700HB1447sam002.) | 2 | | (40 ILCS 5/14-106.5) | 3 | | Sec. 14-106.5. Election by Tier I employees and Tier I | 4 | | retirees. | 5 | | (a) Each Tier I employee shall make an irrevocable election | 6 | | either: | 7 | | (1) to agree to the following: | 8 | | (i) to have the amount of the automatic annual | 9 | | increases in his or her retirement annuity that are | 10 | | otherwise provided for in this Article calculated, | 11 | | instead, as provided in subsection (a-1) of Section | 12 | | 14-114; and | 13 | | (ii) to have his or her eligibility for automatic | 14 | | annual increases in retirement annuity postponed as | 15 | | provided in subsection (a-2) of Section 14-114; or | 16 | | (2) to not agree to items (i) and (ii) as set forth in | 17 | | paragraph (1) of this subsection. | 18 | | The election required under this subsection (a) shall be | 19 | | made by each Tier I employee no earlier than July January 1, | 20 | | 2013 and no later than November 30 May 31 , 2013, except that: | 21 | | (i) a person who becomes a Tier I employee under this | 22 | | Article after July January 1, 2013 must make the election | 23 | | under this subsection (a) within 60 days after becoming a | 24 | | Tier I employee; | 25 | | (ii) a person who returns to active service as a Tier I |
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| 1 | | employee under this Article after July January 1, 2013 and | 2 | | has not yet made an election under this Section must make | 3 | | the election under this subsection (a) within 60 days after | 4 | | returning to active service as a Tier I employee; and | 5 | | (iii) a person who made the election under subsection | 6 | | (a-5) as a Tier I retiree remains bound by that election | 7 | | and shall not make a later election under this subsection | 8 | | (a). | 9 | | If a Tier I employee fails for any reason to make a | 10 | | required election under this subsection within the time | 11 | | specified, then the employee shall be deemed to have made the | 12 | | election under paragraph (2) of this subsection. | 13 | | (a-5) Each Tier I retiree shall make an irrevocable | 14 | | election either: | 15 | | (1) to agree to the following: | 16 | | (i) to have the amount of the automatic annual | 17 | | increases in his or her retirement annuity that are | 18 | | otherwise provided for in this Article calculated, | 19 | | instead, as provided in subsection (a-1) of Section | 20 | | 14-114; and | 21 | | (ii) to have his or her eligibility for automatic | 22 | | annual increases in retirement annuity postponed as | 23 | | provided in subsection (a-2) of Section 14-114; or | 24 | | (2) to not agree to items (i) and (ii) as set forth in | 25 | | paragraph (1) of this subsection. | 26 | | The election required under this subsection (a-5) shall be |
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| 1 | | made by each Tier I retiree no earlier than July January 1, | 2 | | 2013 and no later than November 30 May 31 , 2013, except that: | 3 | | (i) a person who becomes a Tier I retiree under this | 4 | | Article on or after July January 1, 2013 must make the | 5 | | election under this subsection (a-5) within 60 days after | 6 | | becoming a Tier I retiree; and | 7 | | (ii) a person who made the election under subsection | 8 | | (a) as a Tier I employee remains bound by that election and | 9 | | shall not make a later election under this subsection | 10 | | (a-5). | 11 | | If a Tier I retiree fails for any reason to make a required | 12 | | election under this subsection within the time specified, then | 13 | | the Tier I retiree shall be deemed to have made the election | 14 | | under paragraph (2) of this subsection. | 15 | | (a-10) All elections under subsection (a) or (a-5) that are | 16 | | made or deemed to be made before December June 1, 2013 shall | 17 | | take effect on January July 1, 2014 2013 . Elections that are | 18 | | made or deemed to be made on or after December June 1, 2013 | 19 | | shall take effect on the first day of the month following the | 20 | | month in which the election is made or deemed to be made. | 21 | | (b) As adequate and legal consideration provided under this | 22 | | amendatory Act of the 97th General Assembly for making the | 23 | | election under paragraph (1) of subsection (a) of this Section, | 24 | | any future increases in income offered by a department under | 25 | | this Article to a Tier I employee who has made the election | 26 | | under paragraph (1) of subsection (a) of this Section shall be |
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| 1 | | offered expressly and irrevocably as constituting compensation | 2 | | under Section 14-103.10. In addition, a Tier I employee who has | 3 | | made the election under paragraph (1) of subsection (a) of this | 4 | | Section shall receive the right to also participate in the | 5 | | optional cash balance plan established under Section 1-162. | 6 | | As adequate and legal consideration provided under this | 7 | | amendatory Act of the 97th General Assembly for making the | 8 | | election under paragraph (1) of subsection (a-5) of this | 9 | | Section, any future increases in income offered by a department | 10 | | under this Article to a Tier I retiree who returns to active | 11 | | service after having made the election under paragraph (1) of | 12 | | subsection (a-5) of this Section shall be offered expressly and | 13 | | irrevocably as constituting compensation under Section | 14 | | 14-103.10. In addition, a Tier I retiree who returns to active | 15 | | service and has made the election under paragraph (1) of | 16 | | subsection (a) of this Section shall receive the right to also | 17 | | participate in the optional cash balance plan established under | 18 | | Section 1-162. | 19 | | (c) A Tier I employee who makes the election under | 20 | | paragraph (2) of subsection (a) of this Section shall not be | 21 | | subject to items (i) and (ii) set forth in paragraph (1) of | 22 | | subsection (a) of this Section. However, any future increases | 23 | | in income offered by a department under this Article to a Tier | 24 | | I employee who has made the election under paragraph (2) of | 25 | | subsection (a) of this Section shall be offered by the | 26 | | department expressly and irrevocably as not constituting |
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| 1 | | compensation under Section 14-103.10, and the employee may not | 2 | | accept any future increase in income that is offered in | 3 | | violation of this requirement. In addition, a Tier I employee | 4 | | who has made the election under paragraph (2) of subsection (a) | 5 | | of this Section shall not receive the right to participate in | 6 | | the optional cash balance plan established under Section 1-162. | 7 | | A Tier I retiree who makes the election under paragraph (2) | 8 | | of subsection (a-5) of this Section shall not be subject to | 9 | | items (i) and (ii) set forth in paragraph (1) of subsection | 10 | | (a-5) of this Section. However, any future increases in income | 11 | | offered by a department under this Article to a Tier I retiree | 12 | | who returns to active service and has made the election under | 13 | | paragraph (2) of subsection (a-5) of this Section shall be | 14 | | offered by the department expressly and irrevocably as not | 15 | | constituting compensation under Section 14-103.10, and the | 16 | | employee may not accept any future increase in income that is | 17 | | offered in violation of this requirement. In addition, a Tier I | 18 | | retiree who returns to active service and has made the election | 19 | | under paragraph (2) of subsection (a) of this Section shall not | 20 | | receive the right to participate in the optional cash balance | 21 | | plan established under Section 1-162. | 22 | | (d) The System shall make a good faith effort to contact | 23 | | each Tier I employee and Tier I retiree subject to this | 24 | | Section. The System shall mail information describing the | 25 | | required election to each Tier I employee and Tier I retiree by | 26 | | United States Postal Service mail to his or her last known |
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| 1 | | address on file with the System. If the Tier I employee or Tier | 2 | | I retiree is not responsive to other means of contact, it is | 3 | | sufficient for the System to publish the details of any | 4 | | required elections on its website or to publish those details | 5 | | in a regularly published newsletter or other existing public | 6 | | forum. | 7 | | Tier I employees and Tier I retirees who are subject to | 8 | | this Section shall be provided with an election packet | 9 | | containing information regarding their options, as well as the | 10 | | forms necessary to make the required election. Upon request, | 11 | | the System shall offer Tier I employees and Tier I retirees an | 12 | | opportunity to receive information from the System before | 13 | | making the required election. The information may consist of | 14 | | video materials, group presentations, individual consultation | 15 | | with a member or authorized representative of the System in | 16 | | person or by telephone or other electronic means, or any | 17 | | combination of those methods. The System shall not provide | 18 | | advice or counseling with respect to which election a Tier I | 19 | | employee or Tier I retiree should make or specific to the legal | 20 | | or tax circumstances of or consequences to the Tier I employee | 21 | | or Tier I retiree. | 22 | | The System shall inform Tier I employees and Tier I | 23 | | retirees in the election packet required under this subsection | 24 | | that the Tier I employee or Tier I retiree may also wish to | 25 | | obtain information and counsel relating to the election | 26 | | required under this Section from any other available source, |
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| 1 | | including but not limited to labor organizations and private | 2 | | counsel. | 3 | | In no event shall the System, its staff, or the Board be | 4 | | held liable for any information given to a member, beneficiary, | 5 | | or annuitant regarding the elections under this Section. The | 6 | | System shall coordinate with the Illinois Department of Central | 7 | | Management Services and each other retirement system | 8 | | administering an election in accordance with this amendatory | 9 | | Act of the 97th General Assembly to provide information | 10 | | concerning the impact of the election set forth in this | 11 | | Section. | 12 | | (e) Notwithstanding any other provision of law, a | 13 | | department under this Article is required to offer any future | 14 | | increases in income expressly and irrevocably as not | 15 | | constituting "compensation" under Section 14-103.10 to any | 16 | | Tier I employee, or Tier I retiree returning to active service, | 17 | | who has made an election under paragraph (2) of subsection (a) | 18 | | or (a-5) of Section 14-106.5. A Tier I employee, or Tier I | 19 | | retiree returning to active service, who has made an election | 20 | | under paragraph (2) of subsection (a) or (a-5) of Section | 21 | | 14-106.5 shall not accept any future increase in income that is | 22 | | offered by an employer under this Article in violation of the | 23 | | requirement set forth in this subsection. | 24 | | (f) A member's election under this Section is not a | 25 | | prohibited election under subdivision (j)(1) of Section 1-119 | 26 | | of this Code. |
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| 1 | | (g) An employee who has made the election under paragraph | 2 | | (1) of subsection (a) or (a-5) of this Section may elect to | 3 | | participate in the optional cash balance plan under Section | 4 | | 1-162. | 5 | | The election to participate in the optional cash balance | 6 | | plan shall be made in writing, in the manner provided by the | 7 | | applicable retirement system. | 8 | | (h) Qualified Plan Status. No provision of this Section | 9 | | shall be interpreted in a way that would cause the System to | 10 | | cease to be a qualified plan under Section 401(a) section 461 | 11 | | (a) of the Internal Revenue Code of 1986.
| 12 | | (i) If this Section is determined to be unconstitutional or | 13 | | otherwise invalid by a final unappealable decision of an | 14 | | Illinois court or a court of competent jurisdiction as applied | 15 | | to Tier I employees but not as applied to Tier I retirees, then | 16 | | this Section and the changes deriving from the election | 17 | | required under this Section shall be null and void as applied | 18 | | to Tier I employees but shall remain in full effect for Tier I | 19 | | retirees. | 20 | | (j) If this Section is determined to be unconstitutional or | 21 | | otherwise invalid by a final unappealable decision of an | 22 | | Illinois court or a court of competent jurisdiction as applied | 23 | | to Tier I retirees but not as applied to Tier I employees, then | 24 | | this Section and the changes deriving from the election | 25 | | required under this Section shall be null and void as applied | 26 | | to Tier I retirees but shall remain in full effect for Tier I |
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| 1 | | employees. | 2 | | (k) If Section 2-110.3 of this Code or any change deriving | 3 | | from the election required under that Section is determined to | 4 | | be unconstitutional or otherwise invalid by a final | 5 | | unappealable decision of an Illinois court or a court of | 6 | | competent jurisdiction, the invalidity of that provision shall | 7 | | not in any way affect the validity of this Section or the | 8 | | changes deriving from the election required under this Section. | 9 | | (Source: 09700HB1447sam002.)
| 10 | | (40 ILCS 5/14-131)
| 11 | | Sec. 14-131. Contributions by State.
| 12 | | (a) Except as otherwise provided in this Section, the State | 13 | | shall make contributions to the System by appropriations of
| 14 | | amounts which, together with other employer contributions from | 15 | | trust, federal,
and other funds, employee contributions, | 16 | | investment income, and other income,
will be sufficient to meet | 17 | | the cost of maintaining and administering the System
on a 90% | 18 | | funded basis in accordance with actuarial recommendations.
| 19 | | For the purposes of this Section and Section 14-135.08, | 20 | | references to State
contributions refer only to employer | 21 | | contributions and do not include employee
contributions that | 22 | | are picked up or otherwise paid by the State or a
department on | 23 | | behalf of the employee.
| 24 | | (b) The Board shall determine the total amount of State | 25 | | contributions
required for each fiscal year on the basis of the |
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| 1 | | actuarial tables and other
assumptions adopted by the Board, | 2 | | using the formula in subsection (e).
| 3 | | The Board shall also determine a State contribution rate | 4 | | for each fiscal
year, expressed as a percentage of payroll, | 5 | | based on the total required State
contribution for that fiscal | 6 | | year (less the amount received by the System from
| 7 | | appropriations under Section 8.12 of the State Finance Act and | 8 | | Section 1 of the
State Pension Funds Continuing Appropriation | 9 | | Act, if any, for the fiscal year
ending on the June 30 | 10 | | immediately preceding the applicable November 15
certification | 11 | | deadline), the estimated payroll (including all forms of
| 12 | | compensation) for personal services rendered by eligible | 13 | | employees, and the
recommendations of the actuary.
| 14 | | For the purposes of this Section and Section 14.1 of the | 15 | | State Finance Act,
the term "eligible employees" includes | 16 | | employees who participate in the System,
persons who may elect | 17 | | to participate in the System but have not so elected,
persons | 18 | | who are serving a qualifying period that is required for | 19 | | participation,
and annuitants employed by a department as | 20 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 21 | | (c) Contributions shall be made by the several departments | 22 | | for each pay
period by warrants drawn by the State Comptroller | 23 | | against their respective
funds or appropriations based upon | 24 | | vouchers stating the amount to be so
contributed. These amounts | 25 | | shall be based on the full rate certified by the
Board under | 26 | | Section 14-135.08 for that fiscal year.
From the effective date |
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| 1 | | of this amendatory Act of the 93rd General
Assembly through the | 2 | | payment of the final payroll from fiscal year 2004
| 3 | | appropriations, the several departments shall not make | 4 | | contributions
for the remainder of fiscal year 2004 but shall | 5 | | instead make payments
as required under subsection (a-1) of | 6 | | Section 14.1 of the State Finance Act.
The several departments | 7 | | shall resume those contributions at the commencement of
fiscal | 8 | | year 2005.
| 9 | | (c-1) Notwithstanding subsection (c) of this Section, for | 10 | | fiscal years 2010 and 2012 only, contributions by the several | 11 | | departments are not required to be made for General Revenue | 12 | | Funds payrolls processed by the Comptroller. Payrolls paid by | 13 | | the several departments from all other State funds must | 14 | | continue to be processed pursuant to subsection (c) of this | 15 | | Section. | 16 | | (c-2) For State fiscal years 2010 and 2012 only, on or as | 17 | | soon as possible after the 15th day of each month, the Board | 18 | | shall submit vouchers for payment of State contributions to the | 19 | | System, in a total monthly amount of one-twelfth of the fiscal | 20 | | year General Revenue Fund contribution as certified by the | 21 | | System pursuant to Section 14-135.08 of the Illinois Pension | 22 | | Code. | 23 | | (d) If an employee is paid from trust funds or federal | 24 | | funds, the
department or other employer shall pay employer | 25 | | contributions from those funds
to the System at the certified | 26 | | rate, unless the terms of the trust or the
federal-State |
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| 1 | | agreement preclude the use of the funds for that purpose, in
| 2 | | which case the required employer contributions shall be paid by | 3 | | the State.
From the effective date of this amendatory
Act of | 4 | | the 93rd General Assembly through the payment of the final
| 5 | | payroll from fiscal year 2004 appropriations, the department or | 6 | | other
employer shall not pay contributions for the remainder of | 7 | | fiscal year
2004 but shall instead make payments as required | 8 | | under subsection (a-1) of
Section 14.1 of the State Finance | 9 | | Act. The department or other employer shall
resume payment of
| 10 | | contributions at the commencement of fiscal year 2005.
| 11 | | (e) Except as otherwise provided in this Section, for State | 12 | | fiscal years 2012 through 2045, the minimum contribution
to the | 13 | | System to be made by the State for each fiscal year shall be an | 14 | | amount
determined by the System to be sufficient to bring the | 15 | | total assets of the
System up to 90% of the total actuarial | 16 | | liabilities of the System by the end
of State fiscal year 2045. | 17 | | In making these determinations, the required State
| 18 | | contribution shall be calculated each year as a level | 19 | | percentage of payroll
over the years remaining to and including | 20 | | fiscal year 2045 and shall be
determined under the projected | 21 | | unit credit actuarial cost method.
| 22 | | For State fiscal years 1996 through 2005, the State | 23 | | contribution to
the System, as a percentage of the applicable | 24 | | employee payroll, shall be
increased in equal annual increments | 25 | | so that by State fiscal year 2011, the
State is contributing at | 26 | | the rate required under this Section; except that
(i) for State |
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| 1 | | fiscal year 1998, for all purposes of this Code and any other
| 2 | | law of this State, the certified percentage of the applicable | 3 | | employee payroll
shall be 5.052% for employees earning eligible | 4 | | creditable service under Section
14-110 and 6.500% for all | 5 | | other employees, notwithstanding any contrary
certification | 6 | | made under Section 14-135.08 before the effective date of this
| 7 | | amendatory Act of 1997, and (ii)
in the following specified | 8 | | State fiscal years, the State contribution to
the System shall | 9 | | not be less than the following indicated percentages of the
| 10 | | applicable employee payroll, even if the indicated percentage | 11 | | will produce a
State contribution in excess of the amount | 12 | | otherwise required under this
subsection and subsection (a):
| 13 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 14 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 15 | | Notwithstanding any other provision of this Article, the | 16 | | total required State
contribution to the System for State | 17 | | fiscal year 2006 is $203,783,900.
| 18 | | Notwithstanding any other provision of this Article, the | 19 | | total required State
contribution to the System for State | 20 | | fiscal year 2007 is $344,164,400.
| 21 | | For each of State fiscal years 2008 through 2009, the State | 22 | | contribution to
the System, as a percentage of the applicable | 23 | | employee payroll, shall be
increased in equal annual increments | 24 | | from the required State contribution for State fiscal year | 25 | | 2007, so that by State fiscal year 2011, the
State is | 26 | | contributing at the rate otherwise required under this Section.
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| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State General Revenue Fund contribution for | 3 | | State fiscal year 2010 is $723,703,100 and shall be made from | 4 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 5 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 6 | | pro rata share of bond sale expenses determined by the System's | 7 | | share of total bond proceeds, (ii) any amounts received from | 8 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 9 | | reduction in bond proceeds due to the issuance of discounted | 10 | | bonds, if applicable. | 11 | | Notwithstanding any other provision of this Article, the
| 12 | | total required State General Revenue Fund contribution for
| 13 | | State fiscal year 2011 is the amount recertified by the System | 14 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 15 | | shall be made from
the proceeds of bonds sold in fiscal year | 16 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 17 | | Act, less (i) the
pro rata share of bond sale expenses | 18 | | determined by the System's
share of total bond proceeds, (ii) | 19 | | any amounts received from
the General Revenue Fund in fiscal | 20 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 21 | | issuance of discounted
bonds, if applicable. | 22 | | Except as otherwise provided in this Section, beginning in | 23 | | State fiscal year 2046, the minimum State contribution for
each | 24 | | fiscal year shall be the amount needed to maintain the total | 25 | | assets of
the System at 90% of the total actuarial liabilities | 26 | | of the System.
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| 1 | | Amounts received by the System pursuant to Section 25 of | 2 | | the Budget Stabilization Act or Section 8.12 of the State | 3 | | Finance Act in any fiscal year do not reduce and do not | 4 | | constitute payment of any portion of the minimum State | 5 | | contribution required under this Article in that fiscal year. | 6 | | Such amounts shall not reduce, and shall not be included in the | 7 | | calculation of, the required State contributions under this | 8 | | Article in any future year until the System has reached a | 9 | | funding ratio of at least 90%. A reference in this Article to | 10 | | the "required State contribution" or any substantially similar | 11 | | term does not include or apply to any amounts payable to the | 12 | | System under Section 25 of the Budget Stabilization Act.
| 13 | | Notwithstanding any other provision of this Section, the | 14 | | required State
contribution for State fiscal year 2005 and for | 15 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 16 | | under this Section and
certified under Section 14-135.08, shall | 17 | | not exceed an amount equal to (i) the
amount of the required | 18 | | State contribution that would have been calculated under
this | 19 | | Section for that fiscal year if the System had not received any | 20 | | payments
under subsection (d) of Section 7.2 of the General | 21 | | Obligation Bond Act, minus
(ii) the portion of the State's | 22 | | total debt service payments for that fiscal
year on the bonds | 23 | | issued in fiscal year 2003 for the purposes of that Section | 24 | | 7.2, as determined
and certified by the Comptroller, that is | 25 | | the same as the System's portion of
the total moneys | 26 | | distributed under subsection (d) of Section 7.2 of the General
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| 1 | | Obligation Bond Act. In determining this maximum for State | 2 | | fiscal years 2008 through 2010, however, the amount referred to | 3 | | in item (i) shall be increased, as a percentage of the | 4 | | applicable employee payroll, in equal increments calculated | 5 | | from the sum of the required State contribution for State | 6 | | fiscal year 2007 plus the applicable portion of the State's | 7 | | total debt service payments for fiscal year 2007 on the bonds | 8 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 9 | | the General
Obligation Bond Act, so that, by State fiscal year | 10 | | 2011, the
State is contributing at the rate otherwise required | 11 | | under this Section.
| 12 | | (e-1) If at least 50% of Tier I employees making an | 13 | | election under Section 14-106.5 before December 1, 2013 choose | 14 | | the option under paragraph (1) of subsection (a) of that | 15 | | Section, then beginning in State fiscal year 2015, instead of | 16 | | the contributions specified in subsection (e) of this Section, | 17 | | the State contributions specified in subsection (e-3) of this | 18 | | Section shall be paid. | 19 | | In making its initial certification of the annual required | 20 | | contribution by the State for State fiscal year 2015, the Board | 21 | | shall assume that the new funding formula provided in | 22 | | subsection (e-3) of this Section applies. If fewer than 50% of | 23 | | Tier I employees making an election under Section 14-106.5 | 24 | | before December 1, 2013 choose the option under paragraph (1) | 25 | | of subsection (a) of that Section, then: | 26 | | (1) Instead of the contributions specified in |
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| 1 | | subsection (e-3) of this Section, the State contributions | 2 | | specified in subsection (e) shall continue to be paid. | 3 | | (2) The Board shall, if necessary, promptly recertify | 4 | | the annual required contribution by the State for the | 5 | | affected State fiscal year. | 6 | | (e-3) As provided in subsection (e-1), in lieu of the State | 7 | | contributions required under subsection (e): | 8 | | (1) For State fiscal years 2015 through 2044 the | 9 | | minimum contribution
to the System to be made by the State | 10 | | for each fiscal year shall be an amount
determined by the | 11 | | System to be equal to the sum of (1) the State's portion of | 12 | | the projected normal cost for that fiscal year, plus (2) an | 13 | | amount sufficient to bring the total assets of the
System | 14 | | up to 100% of the total actuarial liabilities of the System | 15 | | by the end of
State fiscal year 2044. In making these | 16 | | determinations, the required State
contribution shall be | 17 | | calculated each year as a level percentage of payroll
over | 18 | | the years remaining to and including fiscal year 2044 and | 19 | | shall be
determined under the projected unit credit | 20 | | actuarial cost method. | 21 | | (2) Beginning in State fiscal year 2045, the minimum | 22 | | State contribution for each fiscal year shall be the amount | 23 | | needed to maintain the total assets of the System at 100% | 24 | | of the total actuarial liabilities of the System. | 25 | | (e-5) Notwithstanding subsection (e-1), if the Tier I | 26 | | employee or Tier I retiree elections under Section 14-106.5, or |
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| 1 | | any of the consequences that are expressly dependent upon | 2 | | either of those elections, are determined to be | 3 | | unconstitutional or otherwise invalid on appeal by a final | 4 | | unappealable decision of an Illinois court or a court of | 5 | | competent jurisdiction, other than as applied to a particular | 6 | | individual or circumstance, then: | 7 | | (1) Beginning with the next fiscal year after the date | 8 | | of that final decision, the annual required contribution to | 9 | | the System to be made by the State shall be determined | 10 | | under subsection (e) of this Section. | 11 | | (2) The Board shall, if necessary, promptly recertify | 12 | | the annual required contribution by the State for that next | 13 | | State fiscal year. | 14 | | (e-1) If at least 50% of Tier I employees making an | 15 | | election under Section 14-106.5 before June 1, 2013 choose the | 16 | | option under paragraph (1) of subsection (a) of that Section, | 17 | | then: | 18 | | (1) In lieu of the State contributions required under | 19 | | subsection (e), for State fiscal years 2014 through 2043 | 20 | | the minimum contribution
to the System to be made by the | 21 | | State for each fiscal year shall be an amount
determined by | 22 | | the System to be equal to the sum of (1) the State's | 23 | | portion of the projected normal cost for that fiscal year, | 24 | | plus (2) an amount sufficient to bring the total assets of | 25 | | the
System up to 100% of the total actuarial liabilities of | 26 | | the System by the end of
State fiscal year 2043. In making |
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| 1 | | these determinations, the required State
contribution | 2 | | shall be calculated each year as a level percentage of | 3 | | payroll
over the years remaining to and including fiscal | 4 | | year 2043 and shall be
determined under the projected unit | 5 | | credit actuarial cost method. | 6 | | (2) Beginning in State fiscal year 2044, the minimum | 7 | | State contribution for each fiscal year shall be the amount | 8 | | needed to maintain the total assets of the System at 100% | 9 | | of the total actuarial liabilities of the System. | 10 | | (e-2) If less than 50% of Tier I employees making an | 11 | | election under Section 14-106.5 before June 1, 2013 choose the | 12 | | option under paragraph (1) of subsection (a) of that Section, | 13 | | then: | 14 | | (1) Instead of the annual required contribution | 15 | | otherwise specified in subsection (e-1) of this Section, | 16 | | the annual required contribution to the System to be made | 17 | | by the State shall be determined under subsection (e) of | 18 | | this Section. | 19 | | (2) As soon as possible after June 1, 2014, the Board | 20 | | shall recertify the annual required contribution by the | 21 | | State for State fiscal year 2015. | 22 | | (f) After the submission of all payments for eligible | 23 | | employees
from personal services line items in fiscal year 2004 | 24 | | have been made,
the Comptroller shall provide to the System a | 25 | | certification of the sum
of all fiscal year 2004 expenditures | 26 | | for personal services that would
have been covered by payments |
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| 1 | | to the System under this Section if the
provisions of this | 2 | | amendatory Act of the 93rd General Assembly had not been
| 3 | | enacted. Upon
receipt of the certification, the System shall | 4 | | determine the amount
due to the System based on the full rate | 5 | | certified by the Board under
Section 14-135.08 for fiscal year | 6 | | 2004 in order to meet the State's
obligation under this | 7 | | Section. The System shall compare this amount
due to the amount | 8 | | received by the System in fiscal year 2004 through
payments | 9 | | under this Section and under Section 6z-61 of the State Finance | 10 | | Act.
If the amount
due is more than the amount received, the | 11 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 12 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 13 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 14 | | Continuing Appropriation Act. If the amount due is less than | 15 | | the
amount received, the
difference shall be termed the "Fiscal | 16 | | Year 2004 Overpayment" for purposes of
this Section, and the | 17 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 18 | | the Pension Contribution Fund as soon as practicable
after the | 19 | | certification.
| 20 | | (g) For purposes of determining the required State | 21 | | contribution to the System, the value of the System's assets | 22 | | shall be equal to the actuarial value of the System's assets, | 23 | | which shall be calculated as follows: | 24 | | As of June 30, 2008, the actuarial value of the System's | 25 | | assets shall be equal to the market value of the assets as of | 26 | | that date. In determining the actuarial value of the System's |
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| 1 | | assets for fiscal years after June 30, 2008, any actuarial | 2 | | gains or losses from investment return incurred in a fiscal | 3 | | year shall be recognized in equal annual amounts over the | 4 | | 5-year period following that fiscal year. | 5 | | (h) For purposes of determining the required State | 6 | | contribution to the System for a particular year, the actuarial | 7 | | value of assets shall be assumed to earn a rate of return equal | 8 | | to the System's actuarially assumed rate of return. | 9 | | (i) After the submission of all payments for eligible | 10 | | employees from personal services line items paid from the | 11 | | General Revenue Fund in fiscal year 2010 have been made, the | 12 | | Comptroller shall provide to the System a certification of the | 13 | | sum of all fiscal year 2010 expenditures for personal services | 14 | | that would have been covered by payments to the System under | 15 | | this Section if the provisions of this amendatory Act of the | 16 | | 96th General Assembly had not been enacted. Upon receipt of the | 17 | | certification, the System shall determine the amount due to the | 18 | | System based on the full rate certified by the Board under | 19 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 20 | | State's obligation under this Section. The System shall compare | 21 | | this amount due to the amount received by the System in fiscal | 22 | | year 2010 through payments under this Section. If the amount | 23 | | due is more than the amount received, the difference shall be | 24 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 25 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 26 | | under Section 1.2 of the State Pension Funds Continuing |
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| 1 | | Appropriation Act. If the amount due is less than the amount | 2 | | received, the difference shall be termed the "Fiscal Year 2010 | 3 | | Overpayment" for purposes of this Section, and the Fiscal Year | 4 | | 2010 Overpayment shall be repaid by the System to the General | 5 | | Revenue Fund as soon as practicable after the certification. | 6 | | (j) After the submission of all payments for eligible | 7 | | employees from personal services line items paid from the | 8 | | General Revenue Fund in fiscal year 2011 have been made, the | 9 | | Comptroller shall provide to the System a certification of the | 10 | | sum of all fiscal year 2011 expenditures for personal services | 11 | | that would have been covered by payments to the System under | 12 | | this Section if the provisions of this amendatory Act of the | 13 | | 96th General Assembly had not been enacted. Upon receipt of the | 14 | | certification, the System shall determine the amount due to the | 15 | | System based on the full rate certified by the Board under | 16 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 17 | | State's obligation under this Section. The System shall compare | 18 | | this amount due to the amount received by the System in fiscal | 19 | | year 2011 through payments under this Section. If the amount | 20 | | due is more than the amount received, the difference shall be | 21 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 22 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 23 | | under Section 1.2 of the State Pension Funds Continuing | 24 | | Appropriation Act. If the amount due is less than the amount | 25 | | received, the difference shall be termed the "Fiscal Year 2011 | 26 | | Overpayment" for purposes of this Section, and the Fiscal Year |
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| 1 | | 2011 Overpayment shall be repaid by the System to the General | 2 | | Revenue Fund as soon as practicable after the certification. | 3 | | (k) For fiscal year 2012 only, after the submission of all | 4 | | payments for eligible employees from personal services line | 5 | | items paid from the General Revenue Fund in the fiscal year | 6 | | have been made, the Comptroller shall provide to the System a | 7 | | certification of the sum of all expenditures in the fiscal year | 8 | | for personal services. Upon receipt of the certification, the | 9 | | System shall determine the amount due to the System based on | 10 | | the full rate certified by the Board under Section 14-135.08 | 11 | | for the fiscal year in order to meet the State's obligation | 12 | | under this Section. The System shall compare this amount due to | 13 | | the amount received by the System for the fiscal year. If the | 14 | | amount due is more than the amount received, the difference | 15 | | shall be termed the "Fiscal Year Shortfall" for purposes of | 16 | | this Section, and the Fiscal Year Shortfall shall be satisfied | 17 | | under Section 1.2 of the State Pension Funds Continuing | 18 | | Appropriation Act. If the amount due is less than the amount | 19 | | received, the difference shall be termed the "Fiscal Year | 20 | | Overpayment" for purposes of this Section, and the Fiscal Year | 21 | | Overpayment shall be repaid by the System to the General | 22 | | Revenue Fund as soon as practicable after the certification. | 23 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | 24 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | 25 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; | 26 | | 09700HB1447sam002.)
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| 1 | | (H.B. 1447, 97th G.A., Sec. 105 rep.)
| 2 | | Section 10. If and only if House Bill 1447 of the 97th | 3 | | General Assembly becomes law in the form in which it was passed | 4 | | by the Senate, then "An Act concerning public employee | 5 | | benefits" (House Bill 1447 of the 97th General Assembly) is | 6 | | amended by repealing Section 105. | 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law or on the effective date of House Bill 1447 of the | 9 | | 97th General Assembly, whichever is later.".
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