SB0105 97TH GENERAL ASSEMBLY

  
  

 


 
97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB0105

 

Introduced 1/27/2011, by Sen. Chris Lauzen - Matt Murphy

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Pension Code. Requires current participants in the State-funded pension and retirement systems to make a one-time, irrevocable election of one of the following: (i) the traditional benefit package under the applicable Article of the Pension Code, (ii) the existing benefit package for new hires, or (iii) a self-managed plan (if made available by the participant's employer). Authorizes persons who became or become participants on or after January 1, 2011 to irrevocably elect either: (i) the benefit package for new hires or (ii) the self-managed plan (if made available by the participant's employer). Sets forth the requirements for the self-managed plan and provides that if such a plan is available it is the default plan if a participant fails to make an election. In the Articles creating the State-funded pension and retirement systems, provides: (i) that, beginning in fiscal year 2013, the State's required contribution is the greater of 6% of the applicable employee payroll or one-half of the actuarially-determined normal cost of the benefit package for new hires and (ii) that the required employee contribution will be based on the benefit package elected by the participant. Amends the Illinois Public Labor Relations Act to provide that the changes made by the amendatory Act control when there is a conflict with the Illinois Public Labor Relations Act.


LRB097 05990 JDS 46061 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB0105LRB097 05990 JDS 46061 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Public Labor Relations Act is
5amended by changing Section 15 as follows:
 
6    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
7    Sec. 15. Act Takes Precedence.
8    (a) In case of any conflict between the provisions of this
9Act and any other law (other than Section 5 of the State
10Employees Group Insurance Act of 1971 and other than the
11changes made to the Illinois Pension Code by Public Act 96-889
12or by this amendatory Act of the 97th General Assembly this
13amendatory Act of the 96th General Assembly), executive order
14or administrative regulation relating to wages, hours and
15conditions of employment and employment relations, the
16provisions of this Act or any collective bargaining agreement
17negotiated thereunder shall prevail and control. Nothing in
18this Act shall be construed to replace or diminish the rights
19of employees established by Sections 28 and 28a of the
20Metropolitan Transit Authority Act, Sections 2.15 through 2.19
21of the Regional Transportation Authority Act. The provisions of
22this Act are subject to Section 5 of the State Employees Group
23Insurance Act of 1971. Nothing in this Act shall be construed

 

 

SB0105- 2 -LRB097 05990 JDS 46061 b

1to replace the necessity of complaints against a sworn peace
2officer, as defined in Section 2(a) of the Uniform Peace
3Officer Disciplinary Act, from having a complaint supported by
4a sworn affidavit.
5    (b) Except as provided in subsection (a) above, any
6collective bargaining contract between a public employer and a
7labor organization executed pursuant to this Act shall
8supersede any contrary statutes, charters, ordinances, rules
9or regulations relating to wages, hours and conditions of
10employment and employment relations adopted by the public
11employer or its agents. Any collective bargaining agreement
12entered into prior to the effective date of this Act shall
13remain in full force during its duration.
14    (c) It is the public policy of this State, pursuant to
15paragraphs (h) and (i) of Section 6 of Article VII of the
16Illinois Constitution, that the provisions of this Act are the
17exclusive exercise by the State of powers and functions which
18might otherwise be exercised by home rule units. Such powers
19and functions may not be exercised concurrently, either
20directly or indirectly, by any unit of local government,
21including any home rule unit, except as otherwise authorized by
22this Act.
23(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
24    Section 10. The Illinois Pension Code is amended by
25changing Sections 2-124, 2-126, 14-131, 14-133, 15-155,

 

 

SB0105- 3 -LRB097 05990 JDS 46061 b

115-157, 16-152, 16-158, 18-131, and 18-133 and by adding
2Sections 1-161, 1-162, and 1-163 as follows:
 
3    (40 ILCS 5/1-161 new)
4    Sec. 1-161. Benefits accruals on and after July 1, 2012.
5    (a) Each participant under a retirement system or pension
6fund established under Article 2, 14, 15, 16, or 18 of this
7Code, other than a person who first becomes an employee and a
8participant on or after January 1, 2011, shall be given the
9choice to elect which retirement program he or she wishes to
10participate in with respect to all periods of covered
11employment occurring on and after July 1, 2012. The retirement
12program election made by the participant must be made no later
13than January 1, 2012. The participant shall elect one of the
14following retirement programs:
15        (1) the traditional benefit package provided by the
16    applicable retirement system or pension fund prior to
17    Public Act 96-889;
18        (2) the revised benefit package provided by the
19    applicable retirement system or pension fund to new
20    employees under Public Act 96-889; or
21        (3) the self-managed plan provided under Section
22    1-162, if the participant's employer has elected to adopt
23    such plan.
24    (b) A person who first becomes an employee and a
25participant under a retirement system or pension fund

 

 

SB0105- 4 -LRB097 05990 JDS 46061 b

1established under Article 2, 14, 15, 16, or 18 of this Code, on
2or after January 1, 2011, shall be given the choice to elect
3which retirement program he or she wishes to participate in
4with respect to all periods of covered employment occurring on
5and after July 1, 2012. The participant shall elect one of the
6retirement programs provided in paragraph (2) or (3) of
7subsection (a) of this Section. The retirement program election
8made by the participant must be made no later than January 1,
92012 or within 30 days after the participant's first day of
10covered employment, whichever is later.
11    (c) If a participant's employer elects to adopt the
12self-managed plan provided under Section 1-162 after the
13participant has already made his or her election under this
14Section, the participant shall have the option to discontinue
15his or her participation in the traditional benefit package or
16revised benefit package, and commence participation in the
17self-managed plan by making an election within 30 days after
18the participant's employer adopts the self-managed plan.
19    (d) The participant election authorized by this Section is
20a one-time, irrevocable election, unless a subsequent election
21is permitted under subsection (c) of this Section. The election
22shall be made in writing, in the manner prescribed by the
23applicable retirement system or pension fund. Any participant
24who fails to make the election shall, by default, participate
25in the benefit program provided under paragraph (3) of
26subsection (a) of this Section if the participant's employer

 

 

SB0105- 5 -LRB097 05990 JDS 46061 b

1has elected to adopt such a plan. If the participant's employer
2has not elected to adopt such a plan, then any participant who
3fails to make this election shall, by default, participate in
4the benefit program provided under paragraph (2) of subsection
5(a) of this Section.
6    (e) If a participant with an accrued benefit under the
7traditional benefit package provided by the applicable
8retirement system or pension fund prior to Public Act 96-889
9elects the revised benefit package provided under paragraph (2)
10of subsection (a) of this Section, the participant's total
11accrued benefit for purposes of determining an annuity shall be
12the sum of (i) the participant's benefit accruals before July
131, 2012, based on the participant's pay and service through
14June 30, 2012 and frozen with respect to pay and service after
15that date and (ii) the participant's benefit accruals based on
16pay and service on or after July 1, 2012, as modified by the
17rules provided in Public Act 96-889.
18    (f) If a participant elects the self-managed plan provided
19under paragraph (3) of subsection (a) of this Section, the
20participant's total accrued benefit for purposes of
21determining an annuity shall be the participant's benefit
22accruals before July 1, 2012, based on the participant's pay
23and service through June 30, 2012 and frozen with respect to
24pay and service after that date. However, the participant shall
25also have an accrued self-managed plan benefit as specified in
26subsection (g) of Section 1-162, for periods of covered

 

 

SB0105- 6 -LRB097 05990 JDS 46061 b

1employment on or after July 1, 2012.
 
2    (40 ILCS 5/1-162 new)
3    Sec. 1-162. Self-managed plan.
4    (a) Each retirement system established under Article 2, 14,
516, or 18 of this Code shall establish and administer a
6self-managed plan, which shall offer participating employees
7the opportunity to accumulate assets for retirement through a
8combination of employee and employer contributions that may be
9invested in mutual funds, collective investment funds, or other
10investment products and used to purchase annuity contracts that
11are fixed, variable, or a combination thereof. The plan must be
12qualified under the Internal Revenue Code of 1986. The State
13Universities Retirement System shall continue to administer
14the self-managed plan provided under Section 15-158.2 of this
15Code.
16    (b) Each employer subject to Article 2, 14, 16, or 18 of
17this Code may elect to adopt the self-managed plan established
18under this Section; this election is irrevocable. An employer's
19election to adopt the self-managed plan makes available to the
20eligible employees of that employer the election described in
21paragraph (3) of subsection (a) of Section 1-161.
22    Each applicable retirement system shall be the plan sponsor
23for the self-managed plan and shall prepare a plan document and
24prescribe the rules and procedures that are necessary or
25desirable for the administration of the self-managed plan.

 

 

SB0105- 7 -LRB097 05990 JDS 46061 b

1Consistent with its fiduciary duty to the participants and
2beneficiaries of the self-managed plan, the board of trustees
3of each retirement system may delegate aspects of plan
4administration as it sees fit to companies authorized to do
5business in this State, to the employers, or to a combination
6of both.
7    (c) An employee eligible to participate in the self-managed
8plan must make a written election in accordance with the
9provisions of Section 1-161 and the procedures established by
10the retirement system. Participation in the self-managed plan
11by an electing employee shall begin on the first day of the
12first pay period following the later of (i) the date the
13employee's election is filed with the retirement system or (ii)
14the effective date upon which the employee's employer begins to
15offer participation in the self-managed plan.
16    (d) Employees who are participating in the program must be
17allowed to direct the transfer of their account balances among
18the various investment options offered, subject to applicable
19contractual provisions. The participant shall not be deemed a
20fiduciary by reason of providing investment direction. A person
21who is a fiduciary shall not be liable for any loss resulting
22from the investment direction of the employee and shall not be
23deemed to have breached any fiduciary duty by acting in
24accordance with that direction. Neither the retirement system
25nor any employer guarantees any of the investments in the
26employee's account balances.

 

 

SB0105- 8 -LRB097 05990 JDS 46061 b

1    (e) The self-managed plan shall be funded by contributions
2from employees participating in the self-managed plan and
3employer contributions as provided in Articles 2, 14, 16, and
418 of this Code. Employees may make additional contributions to
5the self-managed plan in accordance with the procedures
6prescribed by each retirement system, to the extent permitted
7under rules prescribed by the applicable retirement system.
8Employee and employer contributions shall be paid into the
9participant's self-managed plan accounts in a manner to be
10prescribed by each system or fund.
11    (f) A participant in the self-managed plan becomes vested
12in the employer contributions credited to his or her accounts
13in the self-managed plan on the earliest to occur of the
14following: (1) completion of 5 years of service with an
15employer described in Article 2, 14, 16, or 18 of this Code or
16(2) if the participant has completed at least 1 1/2 years of
17service, the death of the participating employee while employed
18by an employer described in Article 2, 14, 16, or 18 of this
19Code.
20    (g) If an employee who is vested in employer contributions
21terminates employment, the employee shall be entitled to a
22benefit that is based on the account values attributable to
23both employer and employee contributions and any investment
24return on those contributions.
25    If an employee who is not vested in employer contributions
26terminates employment, the employee shall be entitled to a

 

 

SB0105- 9 -LRB097 05990 JDS 46061 b

1benefit based solely on the account values attributable to the
2employee's contributions and any investment return on those
3contributions, and the employer contributions and any
4investment return on those contributions shall be forfeited.
5Any employer contributions that are forfeited shall be held in
6escrow by the company investing those contributions and shall
7be used as directed by the System for future allocations of
8employer contributions.
 
9    (40 ILCS 5/1-163 new)
10    Sec. 1-163. Minimum benefit provisions. Each employee
11participating in a system established under Article 2, 14, 15,
1216, or 18 of this Code shall receive a minimum benefit or
13allocation determined as follows:
14        (1) If the employee is participating in the traditional
15    benefit package provided under paragraph (1) of subsection
16    (a) of Section 1-161 of this Code or the revised benefit
17    package provided under paragraph (2) of subsection (a) of
18    Section 1-161 of this Code, the employee shall receive a
19    minimum benefit (commencing on his or her Social Security
20    retirement age) that is equal to the annual primary
21    insurance amount the employee would have under Social
22    Security. For the purposes of this item (1), the primary
23    insurance amount an individual would have under Social
24    Security shall be calculated so that the system meets the
25    requirements necessary to be considered a "retirement

 

 

SB0105- 10 -LRB097 05990 JDS 46061 b

1    system" under Section 3121(b)(7)(F) of the Internal
2    Revenue Code and the regulations in effect thereunder.
3        (2) If the employee is participating in the
4    self-managed plan provided under paragraph (3) of
5    subsection (a) of Section 1-161 of this Code, the employee
6    shall receive a minimum allocation equal to 7.5% of the
7    employee's compensation for service during the period.
8    Contributions by the employer or the State shall be taken
9    into account for this purpose. For the purposes of this
10    paragraph (2), the minimum allocation shall be calculated
11    so that the system meets the requirements necessary to be
12    considered a "retirement system" under Section
13    3121(b)(7)(F) of the Internal Revenue Code and the
14    regulations in effect thereunder.
 
15    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
16    Sec. 2-124. Contributions by State.
17    (a) The State shall make contributions to the System by
18appropriations of amounts which, together with the
19contributions of participants, interest earned on investments,
20and other income will meet the cost of maintaining and
21administering the System on a 90% funded basis in accordance
22with actuarial recommendations.
23    (b) The Board shall determine the amount of State
24contributions required for each fiscal year on the basis of the
25actuarial tables and other assumptions adopted by the Board and

 

 

SB0105- 11 -LRB097 05990 JDS 46061 b

1the prescribed rate of interest, using the formula in
2subsection (c).
3    (c) For purposes of this Article:
4        (1) Notwithstanding any other provision of this
5    Section, the minimum required State contribution with
6    respect to benefit accruals occurring in years after fiscal
7    year 2012 shall be 6% of the applicable employee payroll or
8    one-half of the actuarially-determined normal cost of the
9    revised defined benefit package provided under paragraph
10    (2) of subsection (a) of Section 1-161 of this Code,
11    whichever is greater. This contribution amount shall apply
12    with respect to each participant in the System, regardless
13    of whether the participant has elected the traditional
14    benefit package provided under paragraph (1) of subsection
15    (a) Section 1-161 of this Code, the revised benefit package
16    provided under paragraph (2) of subsection (a) of Section
17    1-161 of this Code, or the self-managed plan provided under
18    paragraph (3) of subsection (a) Section 1-161 of this Code.
19        (2) In addition to the amounts contributed under
20    paragraph (1) of this subsection (c), for State fiscal
21    years 2013 through 2045, the State shall make an additional
22    contribution to the System of an amount that is actuarially
23    determined to be sufficient to fund, by the end of State
24    fiscal year 2045, the System's unfunded liability
25    attributable to service completed by the end of fiscal year
26    2012, calculated using fiscal year 2012 wage levels. In

 

 

SB0105- 12 -LRB097 05990 JDS 46061 b

1    calculating the contributions under this paragraph (2),
2    the required State contribution shall be calculated each
3    year as a level dollar amount over the years remaining to
4    and including fiscal year 2045.
5        (3) Subject to the provisions of paragraphs (1) and (2)
6    of this subsection (c):
7         For State fiscal years 2011 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
10    be sufficient to bring the total assets of the System up to
11    90% of the total actuarial liabilities of the System by the
12    end of State fiscal year 2045. In making these
13    determinations, the required State contribution shall be
14    calculated each year as a level percentage of payroll over
15    the years remaining to and including fiscal year 2045 and
16    shall be determined under the projected unit credit
17    actuarial cost method.
18        For State fiscal years 1996 through 2005, the State
19    contribution to the System, as a percentage of the
20    applicable employee payroll, shall be increased in equal
21    annual increments so that by State fiscal year 2011, the
22    State is contributing at the rate required under this
23    Section.
24        Notwithstanding any other provision of this Article,
25    the total required State contribution for State fiscal year
26    2006 is $4,157,000.

 

 

SB0105- 13 -LRB097 05990 JDS 46061 b

1        Notwithstanding any other provision of this Article,
2    the total required State contribution for State fiscal year
3    2007 is $5,220,300.
4        For each of State fiscal years 2008 through 2009, the
5    State contribution to the System, as a percentage of the
6    applicable employee payroll, shall be increased in equal
7    annual increments from the required State contribution for
8    State fiscal year 2007, so that by State fiscal year 2011,
9    the State is contributing at the rate otherwise required
10    under this Section.
11        Notwithstanding any other provision of this Article,
12    the total required State contribution for State fiscal year
13    2010 is $10,454,000 and shall be made from the proceeds of
14    bonds sold in fiscal year 2010 pursuant to Section 7.2 of
15    the General Obligation Bond Act, less (i) the pro rata
16    share of bond sale expenses determined by the System's
17    share of total bond proceeds, (ii) any amounts received
18    from the General Revenue Fund in fiscal year 2010, and
19    (iii) any reduction in bond proceeds due to the issuance of
20    discounted bonds, if applicable.
21        Beginning in State fiscal year 2046, the minimum State
22    contribution for each fiscal year shall be the amount
23    needed to maintain the total assets of the System at 90% of
24    the total actuarial liabilities of the System.
25        Amounts received by the System pursuant to Section 25
26    of the Budget Stabilization Act or Section 8.12 of the

 

 

SB0105- 14 -LRB097 05990 JDS 46061 b

1    State Finance Act in any fiscal year do not reduce and do
2    not constitute payment of any portion of the minimum State
3    contribution required under this Article in that fiscal
4    year. Such amounts shall not reduce, and shall not be
5    included in the calculation of, the required State
6    contributions under this Article in any future year until
7    the System has reached a funding ratio of at least 90%. A
8    reference in this Article to the "required State
9    contribution" or any substantially similar term does not
10    include or apply to any amounts payable to the System under
11    Section 25 of the Budget Stabilization Act.
12        Notwithstanding any other provision of this Section,
13    the required State contribution for State fiscal year 2005
14    and for fiscal year 2008 and each fiscal year thereafter,
15    as calculated under this Section and certified under
16    Section 2-134, shall not exceed an amount equal to (i) the
17    amount of the required State contribution that would have
18    been calculated under this Section for that fiscal year if
19    the System had not received any payments under subsection
20    (d) of Section 7.2 of the General Obligation Bond Act,
21    minus (ii) the portion of the State's total debt service
22    payments for that fiscal year on the bonds issued for the
23    purposes of that Section 7.2, as determined and certified
24    by the Comptroller, that is the same as the System's
25    portion of the total moneys distributed under subsection
26    (d) of Section 7.2 of the General Obligation Bond Act. In

 

 

SB0105- 15 -LRB097 05990 JDS 46061 b

1    determining this maximum for State fiscal years 2008
2    through 2010, however, the amount referred to in item (i)
3    shall be increased, as a percentage of the applicable
4    employee payroll, in equal increments calculated from the
5    sum of the required State contribution for State fiscal
6    year 2007 plus the applicable portion of the State's total
7    debt service payments for fiscal year 2007 on the bonds
8    issued for the purposes of Section 7.2 of the General
9    Obligation Bond Act, so that, by State fiscal year 2011,
10    the State is contributing at the rate otherwise required
11    under this Section.
12    (d) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (e) For purposes of determining the required State
24contribution to the system for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the system's actuarially assumed rate of return.

 

 

SB0105- 16 -LRB097 05990 JDS 46061 b

1(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
 
2    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
3    Sec. 2-126. Contributions by participants.
4    (a) Each participant shall contribute toward the cost of
5his or her retirement annuity a percentage of each payment of
6salary received by him or her for service as a member as
7follows: for service between October 31, 1947 and January 1,
81959, 5%; for service between January 1, 1959 and June 30,
91969, 6%; for service between July 1, 1969 and January 10,
101973, 6 1/2%; for service after January 10, 1973, 7%; for
11service after December 31, 1981, 8 1/2%.
12    (b) Beginning August 2, 1949, each male participant, and
13from July 1, 1971, each female participant shall contribute
14towards the cost of the survivor's annuity 2% of salary.
15    A participant who has no eligible survivor's annuity
16beneficiary may elect to cease making contributions for
17survivor's annuity under this subsection. A survivor's annuity
18shall not be payable upon the death of a person who has made
19this election, unless prior to that death the election has been
20revoked and the amount of the contributions that would have
21been paid under this subsection in the absence of the election
22is paid to the System, together with interest at the rate of 4%
23per year from the date the contributions would have been made
24to the date of payment.
25    (c) Beginning July 1, 1967, each participant shall

 

 

SB0105- 17 -LRB097 05990 JDS 46061 b

1contribute 1% of salary towards the cost of automatic increase
2in annuity provided in Section 2-119.1. These contributions
3shall be made concurrently with contributions for retirement
4annuity purposes.
5    (d) In addition, each participant serving as an officer of
6the General Assembly shall contribute, for the same purposes
7and at the same rates as are required of a regular participant,
8on each additional payment received as an officer. If the
9participant serves as an officer for at least 2 but less than 4
10years, he or she shall contribute an amount equal to the amount
11that would have been contributed had the participant served as
12an officer for 4 years. Persons who serve as officers in the
1387th General Assembly but cannot receive the additional payment
14to officers because of the ban on increases in salary during
15their terms may nonetheless make contributions based on those
16additional payments for the purpose of having the additional
17payments included in their highest salary for annuity purposes;
18however, persons electing to make these additional
19contributions must also pay an amount representing the
20corresponding employer contributions, as calculated by the
21System.
22    (e) Notwithstanding any other provision of this Article,
23the required contribution of a participant who first becomes a
24participant on or after January 1, 2011 shall not exceed the
25contribution that would be due under this Article if that
26participant's highest salary for annuity purposes were

 

 

SB0105- 18 -LRB097 05990 JDS 46061 b

1$106,800, plus any increases in that amount under Section
22-108.1.
3    (f) Notwithstanding anything in this Section to the
4contrary, effective July 1, 2012, all participants shall be
5required to make the following contributions:
6        (1) Participants who elect the traditional benefit
7    package provided under paragraph (1) of subsection (a) of
8    Section 1-161 of this Code shall contribute a percentage of
9    salary equal to the sum of the following:
10            (A) 6% of salary or one-half of the
11        actuarially-determined normal cost of the revised
12        defined benefit package provided under paragraph (2)
13        of subsection (a) of Section 1-161 of this Code,
14        whichever is greater;
15            (B) an additional percentage of salary that is
16        actuarially determined to equal the difference between
17        the normal cost of the traditional plan and the normal
18        cost of the revised benefit package; and
19            (C) an additional percentage of salary that is
20        actuarially determined to be sufficient to amortize
21        the portion of the System's unfunded liability at the
22        end of fiscal year 2012 that is attributable to wage
23        increases occurring after the effective date of this
24        amendatory Act of the 97th General Assembly.
25        (2) Participants who elect the revised benefit package
26    provided under paragraph (2) of subsection (a) of Section

 

 

SB0105- 19 -LRB097 05990 JDS 46061 b

1    1-161 of this Code shall contribute 6% of salary or
2    one-half of the actuarially-determined normal cost of the
3    revised defined benefit package provided under paragraph
4    (2) of subsection (a) of Section 1-161 of this Code,
5    whichever is greater.
6        (3) Participants who elect the self-managed plan
7    provided under paragraph (3) of subsection (a) of Section
8    1-161 of this Code shall contribute 6% of salary or
9    one-half of the actuarially-determined normal cost of the
10    revised defined benefit package provided under paragraph
11    (2) of subsection (a) of Section 1-161 of this Code,
12    whichever is greater.
13    No prior contribution increases or other additional
14contributions specified by this Section shall apply to any
15participant for service on or after July 1, 2012.
16(Source: P.A. 96-1490, eff. 1-1-11.)
 
17    (40 ILCS 5/14-131)
18    Sec. 14-131. Contributions by State.
19    (a) The State shall make contributions to the System by
20appropriations of amounts which, together with other employer
21contributions from trust, federal, and other funds, employee
22contributions, investment income, and other income, will be
23sufficient to meet the cost of maintaining and administering
24the System on a 90% funded basis in accordance with actuarial
25recommendations.

 

 

SB0105- 20 -LRB097 05990 JDS 46061 b

1    For the purposes of this Section and Section 14-135.08,
2references to State contributions refer only to employer
3contributions and do not include employee contributions that
4are picked up or otherwise paid by the State or a department on
5behalf of the employee.
6    (b) The Board shall determine the total amount of State
7contributions required for each fiscal year on the basis of the
8actuarial tables and other assumptions adopted by the Board,
9using the formula in subsection (e).
10    The Board shall also determine a State contribution rate
11for each fiscal year, expressed as a percentage of payroll,
12based on the total required State contribution for that fiscal
13year (less the amount received by the System from
14appropriations under Section 8.12 of the State Finance Act and
15Section 1 of the State Pension Funds Continuing Appropriation
16Act, if any, for the fiscal year ending on the June 30
17immediately preceding the applicable November 15 certification
18deadline), the estimated payroll (including all forms of
19compensation) for personal services rendered by eligible
20employees, and the recommendations of the actuary.
21    For the purposes of this Section and Section 14.1 of the
22State Finance Act, the term "eligible employees" includes
23employees who participate in the System, persons who may elect
24to participate in the System but have not so elected, persons
25who are serving a qualifying period that is required for
26participation, and annuitants employed by a department as

 

 

SB0105- 21 -LRB097 05990 JDS 46061 b

1described in subdivision (a)(1) or (a)(2) of Section 14-111.
2    (c) Contributions shall be made by the several departments
3for each pay period by warrants drawn by the State Comptroller
4against their respective funds or appropriations based upon
5vouchers stating the amount to be so contributed. These amounts
6shall be based on the full rate certified by the Board under
7Section 14-135.08 for that fiscal year. From the effective date
8of this amendatory Act of the 93rd General Assembly through the
9payment of the final payroll from fiscal year 2004
10appropriations, the several departments shall not make
11contributions for the remainder of fiscal year 2004 but shall
12instead make payments as required under subsection (a-1) of
13Section 14.1 of the State Finance Act. The several departments
14shall resume those contributions at the commencement of fiscal
15year 2005.
16    (c-1) Notwithstanding subsection (c) of this Section, for
17fiscal year 2010 only, contributions by the several departments
18are not required to be made for General Revenue Funds payrolls
19processed by the Comptroller. Payrolls paid by the several
20departments from all other State funds must continue to be
21processed pursuant to subsection (c) of this Section.
22    (c-2) For State fiscal year 2010 only, on or as soon as
23possible after the 15th day of each month the Board shall
24submit vouchers for payment of State contributions to the
25System, in a total monthly amount of one-twelfth of the fiscal
26year 2010 General Revenue Fund appropriation to the System.

 

 

SB0105- 22 -LRB097 05990 JDS 46061 b

1    (d) If an employee is paid from trust funds or federal
2funds, the department or other employer shall pay employer
3contributions from those funds to the System at the certified
4rate, unless the terms of the trust or the federal-State
5agreement preclude the use of the funds for that purpose, in
6which case the required employer contributions shall be paid by
7the State. From the effective date of this amendatory Act of
8the 93rd General Assembly through the payment of the final
9payroll from fiscal year 2004 appropriations, the department or
10other employer shall not pay contributions for the remainder of
11fiscal year 2004 but shall instead make payments as required
12under subsection (a-1) of Section 14.1 of the State Finance
13Act. The department or other employer shall resume payment of
14contributions at the commencement of fiscal year 2005.
15    (e) For purposes of this Article:
16        (1) Notwithstanding any other provision of this
17    Section, the minimum of the applicable required State
18    contribution with respect to benefit accruals occurring in
19    years after fiscal year 2012 shall be 6% employee payroll
20    or one-half of the actuarially-determined normal cost of
21    the revised defined benefit package provided under
22    paragraph (2) of subsection (a) of Section 1-161 of this
23    Code, whichever is greater. This contribution amount shall
24    apply with respect to each participant in the System,
25    regardless of whether the participant has elected the
26    traditional benefit package provided under paragraph (1)

 

 

SB0105- 23 -LRB097 05990 JDS 46061 b

1    of subsection (a) of Section 1-161 of this Code, the
2    revised benefit package provided under paragraph (2) of
3    subsection (a) of Section 1-161 of this Code, or the
4    self-managed plan provided under paragraph (3) of
5    subsection (a) of Section 1-161 of this Code.
6        (2) In addition to the amounts contributed under
7    paragraph (1) of this subsection (e), for State fiscal
8    years 2013 through 2045, the State shall make an additional
9    contribution to the System of an amount that is actuarially
10    determined to be sufficient to fund, by the end of State
11    fiscal year 2045, the System's unfunded liability
12    attributable to service completed by the end of fiscal year
13    2012, calculated using fiscal year 2012 wage levels. In
14    calculating the contributions under this paragraph (2),
15    the required State contribution shall be calculated each
16    year as a level dollar amount over the years remaining to
17    and including fiscal year 2045.
18        (3) Subject to the provisions of paragraphs (1) and (2)
19    of this subsection (e):
20        For State fiscal years 2011 through 2045, the minimum
21    contribution to the System to be made by the State for each
22    fiscal year shall be an amount determined by the System to
23    be sufficient to bring the total assets of the System up to
24    90% of the total actuarial liabilities of the System by the
25    end of State fiscal year 2045. In making these
26    determinations, the required State contribution shall be

 

 

SB0105- 24 -LRB097 05990 JDS 46061 b

1    calculated each year as a level percentage of payroll over
2    the years remaining to and including fiscal year 2045 and
3    shall be determined under the projected unit credit
4    actuarial cost method.
5        For State fiscal years 1996 through 2005, the State
6    contribution to the System, as a percentage of the
7    applicable employee payroll, shall be increased in equal
8    annual increments so that by State fiscal year 2011, the
9    State is contributing at the rate required under this
10    Section; except that (i) for State fiscal year 1998, for
11    all purposes of this Code and any other law of this State,
12    the certified percentage of the applicable employee
13    payroll shall be 5.052% for employees earning eligible
14    creditable service under Section 14-110 and 6.500% for all
15    other employees, notwithstanding any contrary
16    certification made under Section 14-135.08 before the
17    effective date of this amendatory Act of 1997, and (ii) in
18    the following specified State fiscal years, the State
19    contribution to the System shall not be less than the
20    following indicated percentages of the applicable employee
21    payroll, even if the indicated percentage will produce a
22    State contribution in excess of the amount otherwise
23    required under this subsection and subsection (a): 9.8% in
24    FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
25    2002; 10.6% in FY 2003; and 10.8% in FY 2004.
26        Notwithstanding any other provision of this Article,

 

 

SB0105- 25 -LRB097 05990 JDS 46061 b

1    the total required State contribution to the System for
2    State fiscal year 2006 is $203,783,900.
3        Notwithstanding any other provision of this Article,
4    the total required State contribution to the System for
5    State fiscal year 2007 is $344,164,400.
6        For each of State fiscal years 2008 through 2009, the
7    State contribution to the System, as a percentage of the
8    applicable employee payroll, shall be increased in equal
9    annual increments from the required State contribution for
10    State fiscal year 2007, so that by State fiscal year 2011,
11    the State is contributing at the rate otherwise required
12    under this Section.
13        Notwithstanding any other provision of this Article,
14    the total required State General Revenue Fund contribution
15    for State fiscal year 2010 is $723,703,100 and shall be
16    made from the proceeds of bonds sold in fiscal year 2010
17    pursuant to Section 7.2 of the General Obligation Bond Act,
18    less (i) the pro rata share of bond sale expenses
19    determined by the System's share of total bond proceeds,
20    (ii) any amounts received from the General Revenue Fund in
21    fiscal year 2010, and (iii) any reduction in bond proceeds
22    due to the issuance of discounted bonds, if applicable.
23        Beginning in State fiscal year 2046, the minimum State
24    contribution for each fiscal year shall be the amount
25    needed to maintain the total assets of the System at 90% of
26    the total actuarial liabilities of the System.

 

 

SB0105- 26 -LRB097 05990 JDS 46061 b

1        Amounts received by the System pursuant to Section 25
2    of the Budget Stabilization Act or Section 8.12 of the
3    State Finance Act in any fiscal year do not reduce and do
4    not constitute payment of any portion of the minimum State
5    contribution required under this Article in that fiscal
6    year. Such amounts shall not reduce, and shall not be
7    included in the calculation of, the required State
8    contributions under this Article in any future year until
9    the System has reached a funding ratio of at least 90%. A
10    reference in this Article to the "required State
11    contribution" or any substantially similar term does not
12    include or apply to any amounts payable to the System under
13    Section 25 of the Budget Stabilization Act.
14        Notwithstanding any other provision of this Section,
15    the required State contribution for State fiscal year 2005
16    and for fiscal year 2008 and each fiscal year thereafter,
17    as calculated under this Section and certified under
18    Section 14-135.08, shall not exceed an amount equal to (i)
19    the amount of the required State contribution that would
20    have been calculated under this Section for that fiscal
21    year if the System had not received any payments under
22    subsection (d) of Section 7.2 of the General Obligation
23    Bond Act, minus (ii) the portion of the State's total debt
24    service payments for that fiscal year on the bonds issued
25    for the purposes of that Section 7.2, as determined and
26    certified by the Comptroller, that is the same as the

 

 

SB0105- 27 -LRB097 05990 JDS 46061 b

1    System's portion of the total moneys distributed under
2    subsection (d) of Section 7.2 of the General Obligation
3    Bond Act. In determining this maximum for State fiscal
4    years 2008 through 2010, however, the amount referred to in
5    item (i) shall be increased, as a percentage of the
6    applicable employee payroll, in equal increments
7    calculated from the sum of the required State contribution
8    for State fiscal year 2007 plus the applicable portion of
9    the State's total debt service payments for fiscal year
10    2007 on the bonds issued for the purposes of Section 7.2 of
11    the General Obligation Bond Act, so that, by State fiscal
12    year 2011, the State is contributing at the rate otherwise
13    required under this Section.
14    (f) After the submission of all payments for eligible
15employees from personal services line items in fiscal year 2004
16have been made, the Comptroller shall provide to the System a
17certification of the sum of all fiscal year 2004 expenditures
18for personal services that would have been covered by payments
19to the System under this Section if the provisions of this
20amendatory Act of the 93rd General Assembly had not been
21enacted. Upon receipt of the certification, the System shall
22determine the amount due to the System based on the full rate
23certified by the Board under Section 14-135.08 for fiscal year
242004 in order to meet the State's obligation under this
25Section. The System shall compare this amount due to the amount
26received by the System in fiscal year 2004 through payments

 

 

SB0105- 28 -LRB097 05990 JDS 46061 b

1under this Section and under Section 6z-61 of the State Finance
2Act. If the amount due is more than the amount received, the
3difference shall be termed the "Fiscal Year 2004 Shortfall" for
4purposes of this Section, and the Fiscal Year 2004 Shortfall
5shall be satisfied under Section 1.2 of the State Pension Funds
6Continuing Appropriation Act. If the amount due is less than
7the amount received, the difference shall be termed the "Fiscal
8Year 2004 Overpayment" for purposes of this Section, and the
9Fiscal Year 2004 Overpayment shall be repaid by the System to
10the Pension Contribution Fund as soon as practicable after the
11certification.
12    (g) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (h) For purposes of determining the required State
24contribution to the System for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the System's actuarially assumed rate of return.

 

 

SB0105- 29 -LRB097 05990 JDS 46061 b

1    (i) After the submission of all payments for eligible
2employees from personal services line items paid from the
3General Revenue Fund in fiscal year 2010 have been made, the
4Comptroller shall provide to the System a certification of the
5sum of all fiscal year 2010 expenditures for personal services
6that would have been covered by payments to the System under
7this Section if the provisions of this amendatory Act of the
896th General Assembly had not been enacted. Upon receipt of the
9certification, the System shall determine the amount due to the
10System based on the full rate certified by the Board under
11Section 14-135.08 for fiscal year 2010 in order to meet the
12State's obligation under this Section. The System shall compare
13this amount due to the amount received by the System in fiscal
14year 2010 through payments under this Section. If the amount
15due is more than the amount received, the difference shall be
16termed the "Fiscal Year 2010 Shortfall" for purposes of this
17Section, and the Fiscal Year 2010 Shortfall shall be satisfied
18under Section 1.2 of the State Pension Funds Continuing
19Appropriation Act. If the amount due is less than the amount
20received, the difference shall be termed the "Fiscal Year 2010
21Overpayment" for purposes of this Section, and the Fiscal Year
222010 Overpayment shall be repaid by the System to the General
23Revenue Fund as soon as practicable after the certification.
24(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45,
25eff. 7-15-09; 96-1000, eff. 7-2-10.)
 

 

 

SB0105- 30 -LRB097 05990 JDS 46061 b

1    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
2    Sec. 14-133. Contributions on behalf of members.
3    (a) Each participating employee shall make contributions
4to the System, based on the employee's compensation, as
5follows:
6        (1) Covered employees, except as indicated below, 3.5%
7    for retirement annuity, and 0.5% for a widow or survivors
8    annuity;
9        (2) Noncovered employees, except as indicated below,
10    7% for retirement annuity and 1% for a widow or survivors
11    annuity;
12        (3) Noncovered employees serving in a position in which
13    "eligible creditable service" as defined in Section 14-110
14    may be earned, 1% for a widow or survivors annuity plus the
15    following amount for retirement annuity: 8.5% through
16    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
17    in 2004 and thereafter;
18        (4) Covered employees serving in a position in which
19    "eligible creditable service" as defined in Section 14-110
20    may be earned, 0.5% for a widow or survivors annuity plus
21    the following amount for retirement annuity: 5% through
22    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
23    and thereafter;
24        (5) Each security employee of the Department of
25    Corrections or of the Department of Human Services who is a
26    covered employee, 0.5% for a widow or survivors annuity

 

 

SB0105- 31 -LRB097 05990 JDS 46061 b

1    plus the following amount for retirement annuity: 5%
2    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
3    in 2004 and thereafter;
4        (6) Each security employee of the Department of
5    Corrections or of the Department of Human Services who is
6    not a covered employee, 1% for a widow or survivors annuity
7    plus the following amount for retirement annuity: 8.5%
8    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
9    11.5% in 2004 and thereafter.
10        (7) Notwithstanding anything in this Section to the
11    contrary, effective July 1, 2012, all employees shall be
12    required to make the following contributions:
13            (A) Participants who elect the traditional benefit
14        package provided under paragraph (1) of subsection (a)
15        of Section 1-161 of this Code shall contribute a
16        percentage of salary equal to the sum of the following:
17                (i) 6% of salary or one-half of the
18            actuarially-determined normal cost of the revised
19            defined benefit package provided under paragraph
20            (2) of subsection (a) of Section 1-161 of this
21            Code, whichever is greater;
22                (ii) an additional percentage of salary that
23            is actuarially determined to equal the difference
24            between the normal cost of the traditional plan and
25            the normal cost of the revised benefit package; and
26                (iii) an additional percentage of salary that

 

 

SB0105- 32 -LRB097 05990 JDS 46061 b

1            is actuarially determined as sufficient to
2            amortize the portion of the System's unfunded
3            liability at the end of fiscal year 2012 that is
4            attributable to wage increases occurring after the
5            effective date of this amendatory Act of the 97th
6            General Assembly.
7            (B) Participants who elect the revised benefit
8        package provided under paragraph (2) of subsection (a)
9        of Section 1-161 of this Code shall contribute 6% of
10        compensation or one-half of the actuarially-determined
11        normal cost of the revised defined benefit package
12        provided under paragraph (2) of subsection (a) of
13        Section 1-161 of this Code, whichever is greater.
14            (C) Participants who elect the self-managed plan
15        provided under paragraph (3) of subsection (a) of
16        Section 1-161 of this Code shall contribute 6% of
17        compensation or one-half of the actuarially-determined
18        normal cost of the revised defined benefit package
19        provided under paragraph (2) of subsection (a) of
20        Section 1-161 of this Code, whichever is greater.
21    No prior contribution increases or other additional
22contributions specified by this Section shall apply to any
23employee for service on or after July 1, 2012.
24    (b) Contributions shall be in the form of a deduction from
25compensation and shall be made notwithstanding that the
26compensation paid in cash to the employee shall be reduced

 

 

SB0105- 33 -LRB097 05990 JDS 46061 b

1thereby below the minimum prescribed by law or regulation. Each
2member is deemed to consent and agree to the deductions from
3compensation provided for in this Article, and shall receipt in
4full for salary or compensation.
5(Source: P.A. 92-14, eff. 6-28-01.)
 
6    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
7    Sec. 15-155. Employer contributions.
8    (a) The State of Illinois shall make contributions by
9appropriations of amounts which, together with the other
10employer contributions from trust, federal, and other funds,
11employee contributions, income from investments, and other
12income of this System, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15    The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(a-1).
20    (a-1) For purposes of this Article:
21        (1) Notwithstanding any other provision of this
22    Section, the minimum required State contribution with
23    respect to benefit accruals occurring in years after fiscal
24    year 2012 shall be 6% of the applicable employee payroll or
25    one-half of the actuarially-determined normal cost of the

 

 

SB0105- 34 -LRB097 05990 JDS 46061 b

1    revised defined benefit package provided under paragraph
2    (2) of subsection (a) of Section 1-161 of this Code,
3    whichever is greater. This contribution amount shall apply
4    with respect to each participant in the system, regardless
5    of whether the participant has elected the traditional
6    benefit package provided under paragraph (1) of subsection
7    (a) of Section 1-161 of this Code, the revised benefit
8    package provided under paragraph (2) of subsection (a) of
9    Section 1-161 of this Code, or the self-managed plan
10    provided under paragraph (3) of subsection (a) of Section
11    1-161 of this Code.
12        (2) In addition to the amounts contributed under
13    paragraph (1), for State fiscal years 2013 through 2045,
14    the State shall make an additional contribution to the
15    System of an amount that is actuarially determined to be
16    sufficient to fund, by the end of State fiscal year 2045,
17    the System's unfunded liability attributable to service
18    completed by the end of fiscal year 2012, calculated using
19    fiscal year 2012 wage levels. In calculating the
20    contributions under this paragraph (2), the required State
21    contribution shall be calculated each year as a level
22    dollar amount over the years remaining to and including
23    fiscal year 2045.
24        (3) Subject to the provisions of paragraph (1) and (2)
25    of this subsection (a-1):
26        For State fiscal years 2011 through 2045, the minimum

 

 

SB0105- 35 -LRB097 05990 JDS 46061 b

1    contribution to the System to be made by the State for each
2    fiscal year shall be an amount determined by the System to
3    be sufficient to bring the total assets of the System up to
4    90% of the total actuarial liabilities of the System by the
5    end of State fiscal year 2045. In making these
6    determinations, the required State contribution shall be
7    calculated each year as a level percentage of payroll over
8    the years remaining to and including fiscal year 2045 and
9    shall be determined under the projected unit credit
10    actuarial cost method.
11        For State fiscal years 1996 through 2005, the State
12    contribution to the System, as a percentage of the
13    applicable employee payroll, shall be increased in equal
14    annual increments so that by State fiscal year 2011, the
15    State is contributing at the rate required under this
16    Section.
17        Notwithstanding any other provision of this Article,
18    the total required State contribution for State fiscal year
19    2006 is $166,641,900.
20        Notwithstanding any other provision of this Article,
21    the total required State contribution for State fiscal year
22    2007 is $252,064,100.
23        For each of State fiscal years 2008 through 2009, the
24    State contribution to the System, as a percentage of the
25    applicable employee payroll, shall be increased in equal
26    annual increments from the required State contribution for

 

 

SB0105- 36 -LRB097 05990 JDS 46061 b

1    State fiscal year 2007, so that by State fiscal year 2011,
2    the State is contributing at the rate otherwise required
3    under this Section.
4        Notwithstanding any other provision of this Article,
5    the total required State contribution for State fiscal year
6    2010 is $702,514,000 and shall be made from the State
7    Pensions Fund and proceeds of bonds sold in fiscal year
8    2010 pursuant to Section 7.2 of the General Obligation Bond
9    Act, less (i) the pro rata share of bond sale expenses
10    determined by the System's share of total bond proceeds,
11    (ii) any amounts received from the General Revenue Fund in
12    fiscal year 2010, (iii) any reduction in bond proceeds due
13    to the issuance of discounted bonds, if applicable.
14        Beginning in State fiscal year 2046, the minimum State
15    contribution for each fiscal year shall be the amount
16    needed to maintain the total assets of the System at 90% of
17    the total actuarial liabilities of the System.
18        Amounts received by the System pursuant to Section 25
19    of the Budget Stabilization Act or Section 8.12 of the
20    State Finance Act in any fiscal year do not reduce and do
21    not constitute payment of any portion of the minimum State
22    contribution required under this Article in that fiscal
23    year. Such amounts shall not reduce, and shall not be
24    included in the calculation of, the required State
25    contributions under this Article in any future year until
26    the System has reached a funding ratio of at least 90%. A

 

 

SB0105- 37 -LRB097 05990 JDS 46061 b

1    reference in this Article to the "required State
2    contribution" or any substantially similar term does not
3    include or apply to any amounts payable to the System under
4    Section 25 of the Budget Stabilization Act.
5        Notwithstanding any other provision of this Section,
6    the required State contribution for State fiscal year 2005
7    and for fiscal year 2008 and each fiscal year thereafter,
8    as calculated under this Section and certified under
9    Section 15-165, shall not exceed an amount equal to (i) the
10    amount of the required State contribution that would have
11    been calculated under this Section for that fiscal year if
12    the System had not received any payments under subsection
13    (d) of Section 7.2 of the General Obligation Bond Act,
14    minus (ii) the portion of the State's total debt service
15    payments for that fiscal year on the bonds issued for the
16    purposes of that Section 7.2, as determined and certified
17    by the Comptroller, that is the same as the System's
18    portion of the total moneys distributed under subsection
19    (d) of Section 7.2 of the General Obligation Bond Act. In
20    determining this maximum for State fiscal years 2008
21    through 2010, however, the amount referred to in item (i)
22    shall be increased, as a percentage of the applicable
23    employee payroll, in equal increments calculated from the
24    sum of the required State contribution for State fiscal
25    year 2007 plus the applicable portion of the State's total
26    debt service payments for fiscal year 2007 on the bonds

 

 

SB0105- 38 -LRB097 05990 JDS 46061 b

1    issued for the purposes of Section 7.2 of the General
2    Obligation Bond Act, so that, by State fiscal year 2011,
3    the State is contributing at the rate otherwise required
4    under this Section.
5    (b) If an employee is paid from trust or federal funds, the
6employer shall pay to the Board contributions from those funds
7which are sufficient to cover the accruing normal costs on
8behalf of the employee. However, universities having employees
9who are compensated out of local auxiliary funds, income funds,
10or service enterprise funds are not required to pay such
11contributions on behalf of those employees. The local auxiliary
12funds, income funds, and service enterprise funds of
13universities shall not be considered trust funds for the
14purpose of this Article, but funds of alumni associations,
15foundations, and athletic associations which are affiliated
16with the universities included as employers under this Article
17and other employers which do not receive State appropriations
18are considered to be trust funds for the purpose of this
19Article.
20    (b-1) The City of Urbana and the City of Champaign shall
21each make employer contributions to this System for their
22respective firefighter employees who participate in this
23System pursuant to subsection (h) of Section 15-107. The rate
24of contributions to be made by those municipalities shall be
25determined annually by the Board on the basis of the actuarial
26assumptions adopted by the Board and the recommendations of the

 

 

SB0105- 39 -LRB097 05990 JDS 46061 b

1actuary, and shall be expressed as a percentage of salary for
2each such employee. The Board shall certify the rate to the
3affected municipalities as soon as may be practical. The
4employer contributions required under this subsection shall be
5remitted by the municipality to the System at the same time and
6in the same manner as employee contributions.
7    (c) Through State fiscal year 1995: The total employer
8contribution shall be apportioned among the various funds of
9the State and other employers, whether trust, federal, or other
10funds, in accordance with actuarial procedures approved by the
11Board. State of Illinois contributions for employers receiving
12State appropriations for personal services shall be payable
13from appropriations made to the employers or to the System. The
14contributions for Class I community colleges covering earnings
15other than those paid from trust and federal funds, shall be
16payable solely from appropriations to the Illinois Community
17College Board or the System for employer contributions.
18    (d) Beginning in State fiscal year 1996, the required State
19contributions to the System shall be appropriated directly to
20the System and shall be payable through vouchers issued in
21accordance with subsection (c) of Section 15-165, except as
22provided in subsection (g).
23    (e) The State Comptroller shall draw warrants payable to
24the System upon proper certification by the System or by the
25employer in accordance with the appropriation laws and this
26Code.

 

 

SB0105- 40 -LRB097 05990 JDS 46061 b

1    (f) Normal costs under this Section means liability for
2pensions and other benefits which accrues to the System because
3of the credits earned for service rendered by the participants
4during the fiscal year and expenses of administering the
5System, but shall not include the principal of or any
6redemption premium or interest on any bonds issued by the Board
7or any expenses incurred or deposits required in connection
8therewith.
9    (g) If the amount of a participant's earnings for any
10academic year used to determine the final rate of earnings,
11determined on a full-time equivalent basis, exceeds the amount
12of his or her earnings with the same employer for the previous
13academic year, determined on a full-time equivalent basis, by
14more than 6%, the participant's employer shall pay to the
15System, in addition to all other payments required under this
16Section and in accordance with guidelines established by the
17System, the present value of the increase in benefits resulting
18from the portion of the increase in earnings that is in excess
19of 6%. This present value shall be computed by the System on
20the basis of the actuarial assumptions and tables used in the
21most recent actuarial valuation of the System that is available
22at the time of the computation. The System may require the
23employer to provide any pertinent information or
24documentation.
25    Whenever it determines that a payment is or may be required
26under this subsection (g), the System shall calculate the

 

 

SB0105- 41 -LRB097 05990 JDS 46061 b

1amount of the payment and bill the employer for that amount.
2The bill shall specify the calculations used to determine the
3amount due. If the employer disputes the amount of the bill, it
4may, within 30 days after receipt of the bill, apply to the
5System in writing for a recalculation. The application must
6specify in detail the grounds of the dispute and, if the
7employer asserts that the calculation is subject to subsection
8(h) or (i) of this Section, must include an affidavit setting
9forth and attesting to all facts within the employer's
10knowledge that are pertinent to the applicability of subsection
11(h) or (i). Upon receiving a timely application for
12recalculation, the System shall review the application and, if
13appropriate, recalculate the amount due.
14    The employer contributions required under this subsection
15(f) may be paid in the form of a lump sum within 90 days after
16receipt of the bill. If the employer contributions are not paid
17within 90 days after receipt of the bill, then interest will be
18charged at a rate equal to the System's annual actuarially
19assumed rate of return on investment compounded annually from
20the 91st day after receipt of the bill. Payments must be
21concluded within 3 years after the employer's receipt of the
22bill.
23    (h) This subsection (h) applies only to payments made or
24salary increases given on or after June 1, 2005 but before July
251, 2011. The changes made by Public Act 94-1057 shall not
26require the System to refund any payments received before July

 

 

SB0105- 42 -LRB097 05990 JDS 46061 b

131, 2006 (the effective date of Public Act 94-1057).
2    When assessing payment for any amount due under subsection
3(g), the System shall exclude earnings increases paid to
4participants under contracts or collective bargaining
5agreements entered into, amended, or renewed before June 1,
62005.
7    When assessing payment for any amount due under subsection
8(g), the System shall exclude earnings increases paid to a
9participant at a time when the participant is 10 or more years
10from retirement eligibility under Section 15-135.
11    When assessing payment for any amount due under subsection
12(g), the System shall exclude earnings increases resulting from
13overload work, including a contract for summer teaching, or
14overtime when the employer has certified to the System, and the
15System has approved the certification, that: (i) in the case of
16overloads (A) the overload work is for the sole purpose of
17academic instruction in excess of the standard number of
18instruction hours for a full-time employee occurring during the
19academic year that the overload is paid and (B) the earnings
20increases are equal to or less than the rate of pay for
21academic instruction computed using the participant's current
22salary rate and work schedule; and (ii) in the case of
23overtime, the overtime was necessary for the educational
24mission.
25    When assessing payment for any amount due under subsection
26(g), the System shall exclude any earnings increase resulting

 

 

SB0105- 43 -LRB097 05990 JDS 46061 b

1from (i) a promotion for which the employee moves from one
2classification to a higher classification under the State
3Universities Civil Service System, (ii) a promotion in academic
4rank for a tenured or tenure-track faculty position, or (iii) a
5promotion that the Illinois Community College Board has
6recommended in accordance with subsection (k) of this Section.
7These earnings increases shall be excluded only if the
8promotion is to a position that has existed and been filled by
9a member for no less than one complete academic year and the
10earnings increase as a result of the promotion is an increase
11that results in an amount no greater than the average salary
12paid for other similar positions.
13    (i) When assessing payment for any amount due under
14subsection (g), the System shall exclude any salary increase
15described in subsection (h) of this Section given on or after
16July 1, 2011 but before July 1, 2014 under a contract or
17collective bargaining agreement entered into, amended, or
18renewed on or after June 1, 2005 but before July 1, 2011.
19Notwithstanding any other provision of this Section, any
20payments made or salary increases given after June 30, 2014
21shall be used in assessing payment for any amount due under
22subsection (g) of this Section.
23    (j) The System shall prepare a report and file copies of
24the report with the Governor and the General Assembly by
25January 1, 2007 that contains all of the following information:
26        (1) The number of recalculations required by the

 

 

SB0105- 44 -LRB097 05990 JDS 46061 b

1    changes made to this Section by Public Act 94-1057 for each
2    employer.
3        (2) The dollar amount by which each employer's
4    contribution to the System was changed due to
5    recalculations required by Public Act 94-1057.
6        (3) The total amount the System received from each
7    employer as a result of the changes made to this Section by
8    Public Act 94-4.
9        (4) The increase in the required State contribution
10    resulting from the changes made to this Section by Public
11    Act 94-1057.
12    (k) The Illinois Community College Board shall adopt rules
13for recommending lists of promotional positions submitted to
14the Board by community colleges and for reviewing the
15promotional lists on an annual basis. When recommending
16promotional lists, the Board shall consider the similarity of
17the positions submitted to those positions recognized for State
18universities by the State Universities Civil Service System.
19The Illinois Community College Board shall file a copy of its
20findings with the System. The System shall consider the
21findings of the Illinois Community College Board when making
22determinations under this Section. The System shall not exclude
23any earnings increases resulting from a promotion when the
24promotion was not submitted by a community college. Nothing in
25this subsection (k) shall require any community college to
26submit any information to the Community College Board.

 

 

SB0105- 45 -LRB097 05990 JDS 46061 b

1    (l) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5    As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12    (m) For purposes of determining the required State
13contribution to the system for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the system's actuarially assumed rate of return.
16(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
1796-43, eff. 7-15-09.)
 
18    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
19    Sec. 15-157. Employee Contributions.
20    (a) Each participating employee shall make contributions
21towards the retirement benefits payable under the retirement
22program applicable to the employee from each payment of
23earnings applicable to employment under this system on and
24after the date of becoming a participant as follows: Prior to
25September 1, 1949, 3 1/2% of earnings; from September 1, 1949

 

 

SB0105- 46 -LRB097 05990 JDS 46061 b

1to August 31, 1955, 5%; from September 1, 1955 to August 31,
21969, 6%; from September 1, 1969, 6 1/2%. These contributions
3are to be considered as normal contributions for purposes of
4this Article.
5    Each participant who is a police officer or firefighter
6shall make normal contributions of 8% of each payment of
7earnings applicable to employment as a police officer or
8firefighter under this system on or after September 1, 1981,
9unless he or she files with the board within 60 days after the
10effective date of this amendatory Act of 1991 or 60 days after
11the board receives notice that he or she is employed as a
12police officer or firefighter, whichever is later, a written
13notice waiving the retirement formula provided by Rule 4 of
14Section 15-136. This waiver shall be irrevocable. If a
15participant had met the conditions set forth in Section
1615-132.1 prior to the effective date of this amendatory Act of
171991 but failed to make the additional normal contributions
18required by this paragraph, he or she may elect to pay the
19additional contributions plus compound interest at the
20effective rate. If such payment is received by the board, the
21service shall be considered as police officer service in
22calculating the retirement annuity under Rule 4 of Section
2315-136. While performing service described in clause (i) or
24(ii) of Rule 4 of Section 15-136, a participating employee
25shall be deemed to be employed as a firefighter for the purpose
26of determining the rate of employee contributions under this

 

 

SB0105- 47 -LRB097 05990 JDS 46061 b

1Section.
2    (b) Starting September 1, 1969, each participating
3employee shall make additional contributions of 1/2 of 1% of
4earnings to finance a portion of the cost of the annual
5increases in retirement annuity provided under Section 15-136,
6except that with respect to participants in the self-managed
7plan this additional contribution shall be used to finance the
8benefits obtained under that retirement program.
9    (c) In addition to the amounts described in subsections (a)
10and (b) of this Section, each participating employee shall make
11contributions of 1% of earnings applicable under this system on
12and after August 1, 1959. The contributions made under this
13subsection (c) shall be considered as survivor's insurance
14contributions for purposes of this Article if the employee is
15covered under the traditional benefit package, and such
16contributions shall be considered as additional contributions
17for purposes of this Article if the employee is participating
18in the self-managed plan or has elected to participate in the
19portable benefit package and has completed the applicable
20one-year waiting period. Contributions in excess of $80 during
21any fiscal year beginning before August 31, 1969 and in excess
22of $120 during any fiscal year thereafter until September 1,
231971 shall be considered as additional contributions for
24purposes of this Article.
25    (d) If the board by board rule so permits and subject to
26such conditions and limitations as may be specified in its

 

 

SB0105- 48 -LRB097 05990 JDS 46061 b

1rules, a participant may make other additional contributions of
2such percentage of earnings or amounts as the participant shall
3elect in a written notice thereof received by the board.
4    (e) That fraction of a participant's total accumulated
5normal contributions, the numerator of which is equal to the
6number of years of service in excess of that which is required
7to qualify for the maximum retirement annuity, and the
8denominator of which is equal to the total service of the
9participant, shall be considered as accumulated additional
10contributions. The determination of the applicable maximum
11annuity and the adjustment in contributions required by this
12provision shall be made as of the date of the participant's
13retirement.
14    (f) Notwithstanding the foregoing, a participating
15employee shall not be required to make contributions under this
16Section after the date upon which continuance of such
17contributions would otherwise cause his or her retirement
18annuity to exceed the maximum retirement annuity as specified
19in clause (1) of subsection (c) of Section 15-136.
20    (g) A participating employee may make contributions for the
21purchase of service credit under this Article.
22    (h) Notwithstanding anything in this Section to the
23contrary, effective July 1, 2012, all participating employees
24shall be required to make the following contributions:
25        (1) Participants who elect the traditional benefit
26    package provided under paragraph (1) of subsection (a) of

 

 

SB0105- 49 -LRB097 05990 JDS 46061 b

1    Section 1-161 of this Code shall contribute a percentage of
2    salary equal to the sum of the following:
3            (A) 6% of salary or one-half of the
4        actuarially-determined normal cost of the revised
5        defined benefit package provided under paragraph (2)
6        of subsection (a) of Section 1-161 of this Code,
7        whichever is greater;
8            (B) an additional percentage of salary that is
9        actuarially determined to equal the difference between
10        the normal cost of the traditional plan and the normal
11        cost of the revised benefit package; and
12            (C) an additional percentage of salary that is
13        actuarially determined as sufficient to amortize the
14        portion of the System's unfunded liability at the end
15        of fiscal year 2012 that is attributable to wage
16        increases occurring after the effective date of this
17        amendatory Act of the 97th General Assembly.
18        (2) Participating employees who elect the revised
19    benefit package provided under paragraph (2) of subsection
20    (a) of Section 1-161 of this Code shall contribute 6% of
21    earnings or one-half of the actuarially-determined normal
22    cost of the revised defined benefit package provided under
23    paragraph (2) of subsection (a) of Section 1-161 of this
24    Code, whichever is greater.
25        (3) Participating employees who elect the self-managed
26    plan provided under paragraph (3) of subsection (a) of

 

 

SB0105- 50 -LRB097 05990 JDS 46061 b

1    Section 1-161 of this Code shall contribute 6% of earnings
2    or one-half of the actuarially-determined normal cost of
3    the revised defined benefit package provided under
4    paragraph (2) of subsection (a) of Section 1-161 of this
5    Code, whichever is greater.
6    No prior contribution increases or other additional
7contributions specified by this Section shall apply to any
8participating employee for service on or after July 1, 2012.
9(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
10eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
1190-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
12    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
13    Sec. 16-152. Contributions by members.
14    (a) Each member shall make contributions for membership
15service to this System as follows:
16        (1) Effective July 1, 1998, contributions of 7.50% of
17    salary towards the cost of the retirement annuity. Such
18    contributions shall be deemed "normal contributions".
19        (2) Effective July 1, 1969, contributions of 1/2 of 1%
20    of salary toward the cost of the automatic annual increase
21    in retirement annuity provided under Section 16-133.1.
22        (3) Effective July 24, 1959, contributions of 1% of
23    salary towards the cost of survivor benefits. Such
24    contributions shall not be credited to the individual
25    account of the member and shall not be subject to refund

 

 

SB0105- 51 -LRB097 05990 JDS 46061 b

1    except as provided under Section 16-143.2.
2        (4) Effective July 1, 2005, contributions of 0.40% of
3    salary toward the cost of the early retirement without
4    discount option provided under Section 16-133.2. This
5    contribution shall cease upon termination of the early
6    retirement without discount option as provided in Section
7    16-176.
8        (5) Notwithstanding anything in this Section to the
9    contrary, effective July 1, 2012, all members shall be
10    required to make the following contributions:
11            (A) Participants who elect the traditional benefit
12        package provided under paragraph (1) of subsection (a)
13        of Section 1-161 of this Code shall contribute a
14        percentage of salary equal to the sum of the following:
15                (1) 6% of salary or one-half of the
16            actuarially-determined normal cost of the revised
17            defined benefit package provided under paragraph
18            (2) of subsection (a) of Section 1-161 of this
19            Code, whichever is greater;
20                (2) an additional percentage of salary that is
21            actuarially determined to equal the difference
22            between the normal cost of the traditional plan and
23            the normal cost of the revised benefit package; and
24                (3) an additional percentage of salary that is
25            actuarially determined as sufficient to amortize
26            the portion of the System's unfunded liability at

 

 

SB0105- 52 -LRB097 05990 JDS 46061 b

1            the end of fiscal year 2012 that is attributable to
2            wage increases occurring after the effective date
3            of this amendatory Act of the 97th General
4            Assembly.
5            (B) Members who elect the revised benefit package
6        provided under paragraph (2) of subsection (a) of
7        Section 1-161 of this Code shall contribute 6% of
8        salary or one-half of the actuarially-determined
9        normal cost of the revised defined benefit package
10        provided under paragraph (2) of subsection (a) of
11        Section 1-161 of this Code, whichever is greater.
12            (C) Members who elect the self-managed plan
13        provided under paragraph (3) of subsection (a) of
14        Section 1-161 of this Code shall contribute 6% of
15        salary or one-half of the actuarially-determined
16        normal cost of the revised defined benefit package
17        provided under paragraph (2) of subsection (a) of
18        Section 1-161 of this Code, whichever is greater.
19    No prior contribution increases or other additional
20contributions specified by this Section shall apply to any
21member for service on or after July 1, 2012.
22    (b) The minimum required contribution for any year of
23full-time teaching service shall be $192.
24    (c) Contributions shall not be required of any annuitant
25receiving a retirement annuity who is given employment as
26permitted under Section 16-118 or 16-150.1.

 

 

SB0105- 53 -LRB097 05990 JDS 46061 b

1    (d) A person who (i) was a member before July 1, 1998, (ii)
2retires with more than 34 years of creditable service, and
3(iii) does not elect to qualify for the augmented rate under
4Section 16-129.1 shall be entitled, at the time of retirement,
5to receive a partial refund of contributions made under this
6Section for service occurring after the later of June 30, 1998
7or attainment of 34 years of creditable service, in an amount
8equal to 1.00% of the salary upon which those contributions
9were based.
10    (e) A member's contributions toward the cost of early
11retirement without discount made under item (a)(4) of this
12Section shall not be refunded if the member has elected early
13retirement without discount under Section 16-133.2 and has
14begun to receive a retirement annuity under this Article
15calculated in accordance with that election. Otherwise, a
16member's contributions toward the cost of early retirement
17without discount made under item (a)(4) of this Section shall
18be refunded according to whichever one of the following
19circumstances occurs first:
20        (1) The contributions shall be refunded to the member,
21    without interest, within 120 days after the member's
22    retirement annuity commences, if the member does not elect
23    early retirement without discount under Section 16-133.2.
24        (2) The contributions shall be included, without
25    interest, in any refund claimed by the member under Section
26    16-151.

 

 

SB0105- 54 -LRB097 05990 JDS 46061 b

1        (3) The contributions shall be refunded to the member's
2    designated beneficiary (or if there is no beneficiary, to
3    the member's estate), without interest, if the member dies
4    without having begun to receive a retirement annuity under
5    this Article.
6        (4) The contributions shall be refunded to the member,
7    without interest, within 120 days after the early
8    retirement without discount option provided under Section
9    16-133.2 is terminated under Section 16-176.
10(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
11    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
12    Sec. 16-158. Contributions by State and other employing
13units.
14    (a) The State shall make contributions to the System by
15means of appropriations from the Common School Fund and other
16State funds of amounts which, together with other employer
17contributions, employee contributions, investment income, and
18other income, will be sufficient to meet the cost of
19maintaining and administering the System on a 90% funded basis
20in accordance with actuarial recommendations.
21    The Board shall determine the amount of State contributions
22required for each fiscal year on the basis of the actuarial
23tables and other assumptions adopted by the Board and the
24recommendations of the actuary, using the formula in subsection
25(b-3).

 

 

SB0105- 55 -LRB097 05990 JDS 46061 b

1    (a-1) Annually, on or before November 15, the Board shall
2certify to the Governor the amount of the required State
3contribution for the coming fiscal year. The certification
4shall include a copy of the actuarial recommendations upon
5which it is based.
6    On or before May 1, 2004, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2005, taking
9into account the amounts appropriated to and received by the
10System under subsection (d) of Section 7.2 of the General
11Obligation Bond Act.
12    On or before July 1, 2005, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2006, taking
15into account the changes in required State contributions made
16by this amendatory Act of the 94th General Assembly.
17    (b) Through State fiscal year 1995, the State contributions
18shall be paid to the System in accordance with Section 18-7 of
19the School Code.
20    (b-1) Beginning in State fiscal year 1996, on the 15th day
21of each month, or as soon thereafter as may be practicable, the
22Board shall submit vouchers for payment of State contributions
23to the System, in a total monthly amount of one-twelfth of the
24required annual State contribution certified under subsection
25(a-1). From the effective date of this amendatory Act of the
2693rd General Assembly through June 30, 2004, the Board shall

 

 

SB0105- 56 -LRB097 05990 JDS 46061 b

1not submit vouchers for the remainder of fiscal year 2004 in
2excess of the fiscal year 2004 certified contribution amount
3determined under this Section after taking into consideration
4the transfer to the System under subsection (a) of Section
56z-61 of the State Finance Act. These vouchers shall be paid by
6the State Comptroller and Treasurer by warrants drawn on the
7funds appropriated to the System for that fiscal year.
8    If in any month the amount remaining unexpended from all
9other appropriations to the System for the applicable fiscal
10year (including the appropriations to the System under Section
118.12 of the State Finance Act and Section 1 of the State
12Pension Funds Continuing Appropriation Act) is less than the
13amount lawfully vouchered under this subsection, the
14difference shall be paid from the Common School Fund under the
15continuing appropriation authority provided in Section 1.1 of
16the State Pension Funds Continuing Appropriation Act.
17    (b-2) Allocations from the Common School Fund apportioned
18to school districts not coming under this System shall not be
19diminished or affected by the provisions of this Article.
20    (b-3) For purposes of this Article:
21        (1) Notwithstanding any other provision of this
22    Section, the minimum required State contribution with
23    respect to benefit accruals occurring in years after fiscal
24    year 2012 shall be 6% of the applicable employee payroll or
25    one-half of the actuarially-determined normal cost of the
26    revised defined benefit package provided under paragraph

 

 

SB0105- 57 -LRB097 05990 JDS 46061 b

1    (2) of subsection (a) of Section 1-161 of this Code,
2    whichever is greater. This contribution amount shall apply
3    with respect to each participant in the System, regardless
4    of whether the participant has elected the traditional
5    benefit package provided under paragraph (1) of subsection
6    (a) of Section 1-161 of this Code, the revised benefit
7    package provided under paragraph (2) of subsection (a) of
8    Section 1-161 of this Code, or the self-managed plan
9    provided under paragraph (3) of subsection (a) of Section
10    1-161 of this Code.
11        (2) In addition to the amounts contributed under
12    paragraph (1), for State fiscal years 2013 through 2045,
13    the State shall make an additional contribution to the
14    System of an amount that is actuarially determined to be
15    sufficient to fund, by the end of State fiscal year 2045,
16    the System's unfunded liability attributable to service
17    completed by the end of fiscal year 2012, calculated using
18    fiscal year 2012 wage levels. In calculating the
19    contributions under this paragraph (2), the required State
20    contribution shall be calculated each year as a level
21    dollar amount over the years remaining to and including
22    fiscal year 2045.
23        (3) Subject to the provisions of paragraphs (1) and (2)
24    of this subsection (b-3):
25        For State fiscal years 2011 through 2045, the minimum
26    contribution to the System to be made by the State for each

 

 

SB0105- 58 -LRB097 05990 JDS 46061 b

1    fiscal year shall be an amount determined by the System to
2    be sufficient to bring the total assets of the System up to
3    90% of the total actuarial liabilities of the System by the
4    end of State fiscal year 2045. In making these
5    determinations, the required State contribution shall be
6    calculated each year as a level percentage of payroll over
7    the years remaining to and including fiscal year 2045 and
8    shall be determined under the projected unit credit
9    actuarial cost method.
10        For State fiscal years 1996 through 2005, the State
11    contribution to the System, as a percentage of the
12    applicable employee payroll, shall be increased in equal
13    annual increments so that by State fiscal year 2011, the
14    State is contributing at the rate required under this
15    Section; except that in the following specified State
16    fiscal years, the State contribution to the System shall
17    not be less than the following indicated percentages of the
18    applicable employee payroll, even if the indicated
19    percentage will produce a State contribution in excess of
20    the amount otherwise required under this subsection and
21    subsection (a), and notwithstanding any contrary
22    certification made under subsection (a-1) before the
23    effective date of this amendatory Act of 1998: 10.02% in FY
24    1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
25    2002; 12.86% in FY 2003; and 13.56% in FY 2004.
26        Notwithstanding any other provision of this Article,

 

 

SB0105- 59 -LRB097 05990 JDS 46061 b

1    the total required State contribution for State fiscal year
2    2006 is $534,627,700.
3        Notwithstanding any other provision of this Article,
4    the total required State contribution for State fiscal year
5    2007 is $738,014,500.
6        For each of State fiscal years 2008 through 2009, the
7    State contribution to the System, as a percentage of the
8    applicable employee payroll, shall be increased in equal
9    annual increments from the required State contribution for
10    State fiscal year 2007, so that by State fiscal year 2011,
11    the State is contributing at the rate otherwise required
12    under this Section.
13        Notwithstanding any other provision of this Article,
14    the total required State contribution for State fiscal year
15    2010 is $2,089,268,000 and shall be made from the proceeds
16    of bonds sold in fiscal year 2010 pursuant to Section 7.2
17    of the General Obligation Bond Act, less (i) the pro rata
18    share of bond sale expenses determined by the System's
19    share of total bond proceeds, (ii) any amounts received
20    from the Common School Fund in fiscal year 2010, and (iii)
21    any reduction in bond proceeds due to the issuance of
22    discounted bonds, if applicable.
23        Beginning in State fiscal year 2046, the minimum State
24    contribution for each fiscal year shall be the amount
25    needed to maintain the total assets of the System at 90% of
26    the total actuarial liabilities of the System.

 

 

SB0105- 60 -LRB097 05990 JDS 46061 b

1        Amounts received by the System pursuant to Section 25
2    of the Budget Stabilization Act or Section 8.12 of the
3    State Finance Act in any fiscal year do not reduce and do
4    not constitute payment of any portion of the minimum State
5    contribution required under this Article in that fiscal
6    year. Such amounts shall not reduce, and shall not be
7    included in the calculation of, the required State
8    contributions under this Article in any future year until
9    the System has reached a funding ratio of at least 90%. A
10    reference in this Article to the "required State
11    contribution" or any substantially similar term does not
12    include or apply to any amounts payable to the System under
13    Section 25 of the Budget Stabilization Act.
14        Notwithstanding any other provision of this Section,
15    the required State contribution for State fiscal year 2005
16    and for fiscal year 2008 and each fiscal year thereafter,
17    as calculated under this Section and certified under
18    subsection (a-1), shall not exceed an amount equal to (i)
19    the amount of the required State contribution that would
20    have been calculated under this Section for that fiscal
21    year if the System had not received any payments under
22    subsection (d) of Section 7.2 of the General Obligation
23    Bond Act, minus (ii) the portion of the State's total debt
24    service payments for that fiscal year on the bonds issued
25    for the purposes of that Section 7.2, as determined and
26    certified by the Comptroller, that is the same as the

 

 

SB0105- 61 -LRB097 05990 JDS 46061 b

1    System's portion of the total moneys distributed under
2    subsection (d) of Section 7.2 of the General Obligation
3    Bond Act. In determining this maximum for State fiscal
4    years 2008 through 2010, however, the amount referred to in
5    item (i) shall be increased, as a percentage of the
6    applicable employee payroll, in equal increments
7    calculated from the sum of the required State contribution
8    for State fiscal year 2007 plus the applicable portion of
9    the State's total debt service payments for fiscal year
10    2007 on the bonds issued for the purposes of Section 7.2 of
11    the General Obligation Bond Act, so that, by State fiscal
12    year 2011, the State is contributing at the rate otherwise
13    required under this Section.
14    (c) Payment of the required State contributions and of all
15pensions, retirement annuities, death benefits, refunds, and
16other benefits granted under or assumed by this System, and all
17expenses in connection with the administration and operation
18thereof, are obligations of the State.
19    If members are paid from special trust or federal funds
20which are administered by the employing unit, whether school
21district or other unit, the employing unit shall pay to the
22System from such funds the full accruing retirement costs based
23upon that service, as determined by the System. Employer
24contributions, based on salary paid to members from federal
25funds, may be forwarded by the distributing agency of the State
26of Illinois to the System prior to allocation, in an amount

 

 

SB0105- 62 -LRB097 05990 JDS 46061 b

1determined in accordance with guidelines established by such
2agency and the System.
3    (d) Effective July 1, 1986, any employer of a teacher as
4defined in paragraph (8) of Section 16-106 shall pay the
5employer's normal cost of benefits based upon the teacher's
6service, in addition to employee contributions, as determined
7by the System. Such employer contributions shall be forwarded
8monthly in accordance with guidelines established by the
9System.
10    However, with respect to benefits granted under Section
1116-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
12of Section 16-106, the employer's contribution shall be 12%
13(rather than 20%) of the member's highest annual salary rate
14for each year of creditable service granted, and the employer
15shall also pay the required employee contribution on behalf of
16the teacher. For the purposes of Sections 16-133.4 and
1716-133.5, a teacher as defined in paragraph (8) of Section
1816-106 who is serving in that capacity while on leave of
19absence from another employer under this Article shall not be
20considered an employee of the employer from which the teacher
21is on leave.
22    (e) Beginning July 1, 1998, every employer of a teacher
23shall pay to the System an employer contribution computed as
24follows:
25        (1) Beginning July 1, 1998 through June 30, 1999, the
26    employer contribution shall be equal to 0.3% of each

 

 

SB0105- 63 -LRB097 05990 JDS 46061 b

1    teacher's salary.
2        (2) Beginning July 1, 1999 and thereafter, the employer
3    contribution shall be equal to 0.58% of each teacher's
4    salary.
5The school district or other employing unit may pay these
6employer contributions out of any source of funding available
7for that purpose and shall forward the contributions to the
8System on the schedule established for the payment of member
9contributions.
10    These employer contributions are intended to offset a
11portion of the cost to the System of the increases in
12retirement benefits resulting from this amendatory Act of 1998.
13    Each employer of teachers is entitled to a credit against
14the contributions required under this subsection (e) with
15respect to salaries paid to teachers for the period January 1,
162002 through June 30, 2003, equal to the amount paid by that
17employer under subsection (a-5) of Section 6.6 of the State
18Employees Group Insurance Act of 1971 with respect to salaries
19paid to teachers for that period.
20    The additional 1% employee contribution required under
21Section 16-152 by this amendatory Act of 1998 is the
22responsibility of the teacher and not the teacher's employer,
23unless the employer agrees, through collective bargaining or
24otherwise, to make the contribution on behalf of the teacher.
25    If an employer is required by a contract in effect on May
261, 1998 between the employer and an employee organization to

 

 

SB0105- 64 -LRB097 05990 JDS 46061 b

1pay, on behalf of all its full-time employees covered by this
2Article, all mandatory employee contributions required under
3this Article, then the employer shall be excused from paying
4the employer contribution required under this subsection (e)
5for the balance of the term of that contract. The employer and
6the employee organization shall jointly certify to the System
7the existence of the contractual requirement, in such form as
8the System may prescribe. This exclusion shall cease upon the
9termination, extension, or renewal of the contract at any time
10after May 1, 1998.
11    (f) If the amount of a teacher's salary for any school year
12used to determine final average salary exceeds the member's
13annual full-time salary rate with the same employer for the
14previous school year by more than 6%, the teacher's employer
15shall pay to the System, in addition to all other payments
16required under this Section and in accordance with guidelines
17established by the System, the present value of the increase in
18benefits resulting from the portion of the increase in salary
19that is in excess of 6%. This present value shall be computed
20by the System on the basis of the actuarial assumptions and
21tables used in the most recent actuarial valuation of the
22System that is available at the time of the computation. If a
23teacher's salary for the 2005-2006 school year is used to
24determine final average salary under this subsection (f), then
25the changes made to this subsection (f) by Public Act 94-1057
26shall apply in calculating whether the increase in his or her

 

 

SB0105- 65 -LRB097 05990 JDS 46061 b

1salary is in excess of 6%. For the purposes of this Section,
2change in employment under Section 10-21.12 of the School Code
3on or after June 1, 2005 shall constitute a change in employer.
4The System may require the employer to provide any pertinent
5information or documentation. The changes made to this
6subsection (f) by this amendatory Act of the 94th General
7Assembly apply without regard to whether the teacher was in
8service on or after its effective date.
9    Whenever it determines that a payment is or may be required
10under this subsection, the System shall calculate the amount of
11the payment and bill the employer for that amount. The bill
12shall specify the calculations used to determine the amount
13due. If the employer disputes the amount of the bill, it may,
14within 30 days after receipt of the bill, apply to the System
15in writing for a recalculation. The application must specify in
16detail the grounds of the dispute and, if the employer asserts
17that the calculation is subject to subsection (g) or (h) of
18this Section, must include an affidavit setting forth and
19attesting to all facts within the employer's knowledge that are
20pertinent to the applicability of that subsection. Upon
21receiving a timely application for recalculation, the System
22shall review the application and, if appropriate, recalculate
23the amount due.
24    The employer contributions required under this subsection
25(f) may be paid in the form of a lump sum within 90 days after
26receipt of the bill. If the employer contributions are not paid

 

 

SB0105- 66 -LRB097 05990 JDS 46061 b

1within 90 days after receipt of the bill, then interest will be
2charged at a rate equal to the System's annual actuarially
3assumed rate of return on investment compounded annually from
4the 91st day after receipt of the bill. Payments must be
5concluded within 3 years after the employer's receipt of the
6bill.
7    (g) This subsection (g) applies only to payments made or
8salary increases given on or after June 1, 2005 but before July
91, 2011. The changes made by Public Act 94-1057 shall not
10require the System to refund any payments received before July
1131, 2006 (the effective date of Public Act 94-1057).
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude salary increases paid to teachers
14under contracts or collective bargaining agreements entered
15into, amended, or renewed before June 1, 2005.
16    When assessing payment for any amount due under subsection
17(f), the System shall exclude salary increases paid to a
18teacher at a time when the teacher is 10 or more years from
19retirement eligibility under Section 16-132 or 16-133.2.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude salary increases resulting from
22overload work, including summer school, when the school
23district has certified to the System, and the System has
24approved the certification, that (i) the overload work is for
25the sole purpose of classroom instruction in excess of the
26standard number of classes for a full-time teacher in a school

 

 

SB0105- 67 -LRB097 05990 JDS 46061 b

1district during a school year and (ii) the salary increases are
2equal to or less than the rate of pay for classroom instruction
3computed on the teacher's current salary and work schedule.
4    When assessing payment for any amount due under subsection
5(f), the System shall exclude a salary increase resulting from
6a promotion (i) for which the employee is required to hold a
7certificate or supervisory endorsement issued by the State
8Teacher Certification Board that is a different certification
9or supervisory endorsement than is required for the teacher's
10previous position and (ii) to a position that has existed and
11been filled by a member for no less than one complete academic
12year and the salary increase from the promotion is an increase
13that results in an amount no greater than the lesser of the
14average salary paid for other similar positions in the district
15requiring the same certification or the amount stipulated in
16the collective bargaining agreement for a similar position
17requiring the same certification.
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude any payment to the teacher from
20the State of Illinois or the State Board of Education over
21which the employer does not have discretion, notwithstanding
22that the payment is included in the computation of final
23average salary.
24    (h) When assessing payment for any amount due under
25subsection (f), the System shall exclude any salary increase
26described in subsection (g) of this Section given on or after

 

 

SB0105- 68 -LRB097 05990 JDS 46061 b

1July 1, 2011 but before July 1, 2014 under a contract or
2collective bargaining agreement entered into, amended, or
3renewed on or after June 1, 2005 but before July 1, 2011.
4Notwithstanding any other provision of this Section, any
5payments made or salary increases given after June 30, 2014
6shall be used in assessing payment for any amount due under
7subsection (f) of this Section.
8    (i) The System shall prepare a report and file copies of
9the report with the Governor and the General Assembly by
10January 1, 2007 that contains all of the following information:
11        (1) The number of recalculations required by the
12    changes made to this Section by Public Act 94-1057 for each
13    employer.
14        (2) The dollar amount by which each employer's
15    contribution to the System was changed due to
16    recalculations required by Public Act 94-1057.
17        (3) The total amount the System received from each
18    employer as a result of the changes made to this Section by
19    Public Act 94-4.
20        (4) The increase in the required State contribution
21    resulting from the changes made to this Section by Public
22    Act 94-1057.
23    (j) For purposes of determining the required State
24contribution to the System, the value of the System's assets
25shall be equal to the actuarial value of the System's assets,
26which shall be calculated as follows:

 

 

SB0105- 69 -LRB097 05990 JDS 46061 b

1    As of June 30, 2008, the actuarial value of the System's
2assets shall be equal to the market value of the assets as of
3that date. In determining the actuarial value of the System's
4assets for fiscal years after June 30, 2008, any actuarial
5gains or losses from investment return incurred in a fiscal
6year shall be recognized in equal annual amounts over the
75-year period following that fiscal year.
8    (k) For purposes of determining the required State
9contribution to the system for a particular year, the actuarial
10value of assets shall be assumed to earn a rate of return equal
11to the system's actuarially assumed rate of return.
12(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
1396-43, eff. 7-15-09.)
 
14    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
15    Sec. 18-131. Financing; employer contributions.
16    (a) The State of Illinois shall make contributions to this
17System by appropriations of the amounts which, together with
18the contributions of participants, net earnings on
19investments, and other income, will meet the costs of
20maintaining and administering this System on a 90% funded basis
21in accordance with actuarial recommendations.
22    (b) The Board shall determine the amount of State
23contributions required for each fiscal year on the basis of the
24actuarial tables and other assumptions adopted by the Board and
25the prescribed rate of interest, using the formula in

 

 

SB0105- 70 -LRB097 05990 JDS 46061 b

1subsection (c).
2    (c) For purposes of this Article:
3        (1) Notwithstanding any other provision of this
4    Section, the minimum required State contribution with
5    respect to benefit accruals occurring in years after fiscal
6    year 2012 shall be 6% of the applicable employee payroll or
7    one-half of the actuarially-determined normal cost of the
8    revised defined benefit package provided under paragraph
9    (2) of subsection (a) of Section 1-161 of this Code,
10    whichever is greater. This contribution amount shall apply
11    with respect to each participant in the system, regardless
12    of whether the participant has elected the traditional
13    benefit package provided under paragraph (1) of subsection
14    (a) of Section 1-161 of this Code, the revised benefit
15    package provided under paragraph (2) of subsection (a) of
16    Section 1-161 of this Code, or the self-managed plan
17    provided under paragraph (3) of subsection (a) of Section
18    1-161 of this Code.
19        (2) In addition to the amounts contributed under
20    paragraph (1), for State fiscal years 2013 through 2045,
21    the State shall make an additional contribution to the
22    System of an amount that is actuarially determined to be
23    sufficient to fund, by the end of State fiscal year 2045,
24    the System's unfunded liability attributable to service
25    completed by the end of fiscal year 2012, calculated using
26    fiscal year 2012 wage levels. In calculating the

 

 

SB0105- 71 -LRB097 05990 JDS 46061 b

1    contributions under this paragraph (2), the required State
2    contribution shall be calculated each year as a level
3    dollar amount over the years remaining to and including
4    fiscal year 2045.
5        (3) Subject to the provisions of paragraphs (1) and (2)
6    of this subsection (c):
7        For State fiscal years 2011 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
10    be sufficient to bring the total assets of the System up to
11    90% of the total actuarial liabilities of the System by the
12    end of State fiscal year 2045. In making these
13    determinations, the required State contribution shall be
14    calculated each year as a level percentage of payroll over
15    the years remaining to and including fiscal year 2045 and
16    shall be determined under the projected unit credit
17    actuarial cost method.
18        For State fiscal years 1996 through 2005, the State
19    contribution to the System, as a percentage of the
20    applicable employee payroll, shall be increased in equal
21    annual increments so that by State fiscal year 2011, the
22    State is contributing at the rate required under this
23    Section.
24        Notwithstanding any other provision of this Article,
25    the total required State contribution for State fiscal year
26    2006 is $29,189,400.

 

 

SB0105- 72 -LRB097 05990 JDS 46061 b

1        Notwithstanding any other provision of this Article,
2    the total required State contribution for State fiscal year
3    2007 is $35,236,800.
4        For each of State fiscal years 2008 through 2009, the
5    State contribution to the System, as a percentage of the
6    applicable employee payroll, shall be increased in equal
7    annual increments from the required State contribution for
8    State fiscal year 2007, so that by State fiscal year 2011,
9    the State is contributing at the rate otherwise required
10    under this Section.
11        Notwithstanding any other provision of this Article,
12    the total required State contribution for State fiscal year
13    2010 is $78,832,000 and shall be made from the proceeds of
14    bonds sold in fiscal year 2010 pursuant to Section 7.2 of
15    the General Obligation Bond Act, less (i) the pro rata
16    share of bond sale expenses determined by the System's
17    share of total bond proceeds, (ii) any amounts received
18    from the General Revenue Fund in fiscal year 2010, and
19    (iii) any reduction in bond proceeds due to the issuance of
20    discounted bonds, if applicable.
21        Beginning in State fiscal year 2046, the minimum State
22    contribution for each fiscal year shall be the amount
23    needed to maintain the total assets of the System at 90% of
24    the total actuarial liabilities of the System.
25        Amounts received by the System pursuant to Section 25
26    of the Budget Stabilization Act or Section 8.12 of the

 

 

SB0105- 73 -LRB097 05990 JDS 46061 b

1    State Finance Act in any fiscal year do not reduce and do
2    not constitute payment of any portion of the minimum State
3    contribution required under this Article in that fiscal
4    year. Such amounts shall not reduce, and shall not be
5    included in the calculation of, the required State
6    contributions under this Article in any future year until
7    the System has reached a funding ratio of at least 90%. A
8    reference in this Article to the "required State
9    contribution" or any substantially similar term does not
10    include or apply to any amounts payable to the System under
11    Section 25 of the Budget Stabilization Act.
12        Notwithstanding any other provision of this Section,
13    the required State contribution for State fiscal year 2005
14    and for fiscal year 2008 and each fiscal year thereafter,
15    as calculated under this Section and certified under
16    Section 18-140, shall not exceed an amount equal to (i) the
17    amount of the required State contribution that would have
18    been calculated under this Section for that fiscal year if
19    the System had not received any payments under subsection
20    (d) of Section 7.2 of the General Obligation Bond Act,
21    minus (ii) the portion of the State's total debt service
22    payments for that fiscal year on the bonds issued for the
23    purposes of that Section 7.2, as determined and certified
24    by the Comptroller, that is the same as the System's
25    portion of the total moneys distributed under subsection
26    (d) of Section 7.2 of the General Obligation Bond Act. In

 

 

SB0105- 74 -LRB097 05990 JDS 46061 b

1    determining this maximum for State fiscal years 2008
2    through 2010, however, the amount referred to in item (i)
3    shall be increased, as a percentage of the applicable
4    employee payroll, in equal increments calculated from the
5    sum of the required State contribution for State fiscal
6    year 2007 plus the applicable portion of the State's total
7    debt service payments for fiscal year 2007 on the bonds
8    issued for the purposes of Section 7.2 of the General
9    Obligation Bond Act, so that, by State fiscal year 2011,
10    the State is contributing at the rate otherwise required
11    under this Section.
12    (d) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (e) For purposes of determining the required State
24contribution to the system for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the system's actuarially assumed rate of return.

 

 

SB0105- 75 -LRB097 05990 JDS 46061 b

1(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
 
2    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
3    Sec. 18-133. Financing; employee contributions.
4    (a) Effective July 1, 1967, each participant is required to
5contribute 7 1/2% of each payment of salary toward the
6retirement annuity. Such contributions shall continue during
7the entire time the participant is in service, with the
8following exceptions:
9        (1) Contributions for the retirement annuity are not
10    required on salary received after 18 years of service by
11    persons who were participants before January 2, 1954.
12        (2) A participant who continues to serve as a judge
13    after becoming eligible to receive the maximum rate of
14    annuity may elect, through a written direction filed with
15    the Board, to discontinue contributing to the System. Any
16    such option elected by a judge shall be irrevocable unless
17    prior to January 1, 2000, and while continuing to serve as
18    judge, the judge (A) files with the Board a letter
19    cancelling the direction to discontinue contributing to
20    the System and requesting that such contributing resume,
21    and (B) pays into the System an amount equal to the total
22    of the discontinued contributions plus interest thereon at
23    5% per annum. Service credits earned in any other
24    "participating system" as defined in Article 20 of this
25    Code shall be considered for purposes of determining a

 

 

SB0105- 76 -LRB097 05990 JDS 46061 b

1    judge's eligibility to discontinue contributions under
2    this subdivision (a)(2).
3        (3) A participant who (i) has attained age 60, (ii)
4    continues to serve as a judge after becoming eligible to
5    receive the maximum rate of annuity, and (iii) has not
6    elected to discontinue contributing to the System under
7    subdivision (a)(2) of this Section (or has revoked any such
8    election) may elect, through a written direction filed with
9    the Board, to make contributions to the System based only
10    on the amount of the increases in salary received by the
11    judge on or after the date of the election, rather than the
12    total salary received. If a judge who is making
13    contributions to the System on the effective date of this
14    amendatory Act of the 91st General Assembly makes an
15    election to limit contributions under this subdivision
16    (a)(3) within 90 days after that effective date, the
17    election shall be deemed to become effective on that
18    effective date and the judge shall be entitled to receive a
19    refund of any excess contributions paid to the System
20    during that 90-day period; any other election under this
21    subdivision (a)(3) becomes effective on the first of the
22    month following the date of the election. An election to
23    limit contributions under this subdivision (a)(3) is
24    irrevocable. Service credits earned in any other
25    participating system as defined in Article 20 of this Code
26    shall be considered for purposes of determining a judge's

 

 

SB0105- 77 -LRB097 05990 JDS 46061 b

1    eligibility to make an election under this subdivision
2    (a)(3).
3    (b) Beginning July 1, 1969, each participant is required to
4contribute 1% of each payment of salary towards the automatic
5increase in annuity provided in Section 18-125.1. However, such
6contributions need not be made by any participant who has
7elected prior to September 15, 1969, not to be subject to the
8automatic increase in annuity provisions.
9    (c) Effective July 13, 1953, each married participant
10subject to the survivor's annuity provisions is required to
11contribute 2 1/2% of each payment of salary, whether or not he
12or she is required to make any other contributions under this
13Section. Such contributions shall be made concurrently with the
14contributions made for annuity purposes.
15    (d) Notwithstanding any other provision of this Article,
16the required contributions for a participant who first becomes
17a participant on or after January 1, 2011 shall not exceed the
18contributions that would be due under this Article if that
19participant's highest salary for annuity purposes were
20$106,800, plus any increase in that amount under Section
2118-125.
22    (e) Notwithstanding anything in this Section to the
23contrary, effective July 1, 2012, all participants shall be
24required to make the following contributions:
25        (1) Participants who elect the traditional benefit
26    package provided under paragraph (1) of subsection (a) of

 

 

SB0105- 78 -LRB097 05990 JDS 46061 b

1    Section 1-161 of this Code shall contribute a percentage of
2    salary equal to the sum of the following:
3            (A) 6% of salary or one-half of the
4        actuarially-determined normal cost of the revised
5        defined benefit package provided under paragraph (2)
6        of subsection (a) of Section 1-161 of this Code,
7        whichever is greater;
8            (B) an additional percentage of salary that is
9        actuarially determined to equal the difference between
10        the normal cost of the traditional plan and the normal
11        cost of the revised benefit package; and
12            (C) an additional percent of salary that is
13        actuarially determined as sufficient to amortize the
14        portion of the System's unfunded liability at the end
15        of fiscal year 2012 that is attributable to wage
16        increases occurring after the effective date of this
17        amendatory Act of the 97th General Assembly.
18        (2) Participants who elect the revised benefit package
19    provided under paragraph (2) of subsection (a) of Section
20    1-161 of this Code shall contribute 6% of salary or
21    one-half of the actuarially-determined normal cost of the
22    revised defined benefit package provided under paragraph
23    (2) of subsection (a) of Section 1-161 of this Code,
24    whichever is greater.
25        (3) Participants who elect the self-managed plan
26    provided under paragraph (3) of subsection (a) of Section

 

 

SB0105- 79 -LRB097 05990 JDS 46061 b

1    1-161 of this Code shall contribute 6% of salary or
2    one-half of the actuarially-determined normal cost of the
3    revised defined benefit package provided under paragraph
4    (2) of subsection (a) of Section 1-161 of this Code,
5    whichever is greater.
6    No prior contribution increases or other additional
7contributions specified by this Section shall apply to any
8participant for service on or after July 1, 2012.
9(Source: P.A. 96-1490, eff. 1-1-11.)

 

 

SB0105- 80 -LRB097 05990 JDS 46061 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 315/15from Ch. 48, par. 1615
4    40 ILCS 5/1-161 new
5    40 ILCS 5/1-162 new
6    40 ILCS 5/1-163 new
7    40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
8    40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
9    40 ILCS 5/14-131
10    40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133
11    40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
12    40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
13    40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
14    40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
15    40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
16    40 ILCS 5/18-133from Ch. 108 1/2, par. 18-133