Full Text of SB0538 97th General Assembly
SB0538sam001 97TH GENERAL ASSEMBLY | Sen. Dan Kotowski Filed: 3/21/2012
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| 1 | | AMENDMENT TO SENATE BILL 538
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 538 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 2-134, 14-135.08, 15-165, 16-158, and 18-140 | 6 | | as follows:
| 7 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 8 | | Sec. 2-134. To certify required State contributions and | 9 | | submit vouchers.
| 10 | | (a) The Board shall certify to the Governor on or before | 11 | | December 15 of each
year the amount of the required State | 12 | | contribution to the System for the next
fiscal year. The | 13 | | certification shall include a copy of the actuarial
| 14 | | recommendations upon which it is based and shall specifically | 15 | | identify the System's predicted State normal cost for that | 16 | | fiscal year .
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| 1 | | On or before May 1, 2004, the Board shall recalculate and | 2 | | recertify to
the Governor the amount of the required State | 3 | | contribution to the System for
State fiscal year 2005, taking | 4 | | into account the amounts appropriated to and
received by the | 5 | | System under subsection (d) of Section 7.2 of the General
| 6 | | Obligation Bond Act.
| 7 | | On or before July 1, 2005, the Board shall recalculate and | 8 | | recertify
to the Governor the amount of the required State
| 9 | | contribution to the System for State fiscal year 2006, taking | 10 | | into account the changes in required State contributions made | 11 | | by this amendatory Act of the 94th General Assembly.
| 12 | | On or before April 1, 2011, the Board shall recalculate and | 13 | | recertify to the Governor the amount of the required State | 14 | | contribution to the System for State fiscal year 2011, applying | 15 | | the changes made by Public Act 96-889 to the System's assets | 16 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 17 | | was approved on that date. | 18 | | (b) Beginning in State fiscal year 1996, on or as soon as | 19 | | possible after the
15th day of each month the Board shall | 20 | | submit vouchers for payment of State
contributions to the | 21 | | System, in a total monthly amount of one-twelfth of the
| 22 | | required annual State contribution certified under subsection | 23 | | (a).
From the effective date of this amendatory Act
of the 93rd | 24 | | General Assembly through June 30, 2004, the Board shall not
| 25 | | submit vouchers for the remainder of fiscal year 2004 in excess | 26 | | of the
fiscal year 2004 certified contribution amount |
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| 1 | | determined
under this Section after taking into consideration | 2 | | the transfer to the
System under subsection (d) of Section | 3 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 4 | | the State Comptroller and Treasurer by warrants drawn
on the | 5 | | funds appropriated to the System for that fiscal year. If in | 6 | | any month
the amount remaining unexpended from all other | 7 | | appropriations to the System for
the applicable fiscal year | 8 | | (including the appropriations to the System under
Section 8.12 | 9 | | of the State Finance Act and Section 1 of the State Pension | 10 | | Funds
Continuing Appropriation Act) is less than the amount | 11 | | lawfully vouchered under
this Section, the difference shall be | 12 | | paid from the General Revenue Fund under
the continuing | 13 | | appropriation authority provided in Section 1.1 of the State
| 14 | | Pension Funds Continuing Appropriation Act.
| 15 | | (c) The full amount of any annual appropriation for the | 16 | | System for
State fiscal year 1995 shall be transferred and made | 17 | | available to the System
at the beginning of that fiscal year at | 18 | | the request of the Board.
Any excess funds remaining at the end | 19 | | of any fiscal year from appropriations
shall be retained by the | 20 | | System as a general reserve to meet the System's
accrued | 21 | | liabilities.
| 22 | | (Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11; | 23 | | 96-1511, eff. 1-27-11.)
| 24 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 25 | | Sec. 14-135.08. To certify required State contributions. |
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| 1 | | (a)
To certify to the Governor and to each department, on | 2 | | or before
November 15 of each year, the required rate for State | 3 | | contributions to the
System for the next State fiscal year, as | 4 | | determined under subsection (b) of
Section 14-131. The | 5 | | certification to the Governor shall include a copy of the
| 6 | | actuarial recommendations upon which the rate is based and | 7 | | shall specifically identify the System's predicted State | 8 | | normal cost for that fiscal year .
| 9 | | (b) The certification shall include an additional amount | 10 | | necessary to pay all principal of and interest on those general | 11 | | obligation bonds due the next fiscal year authorized by Section | 12 | | 7.2(a) of the General Obligation Bond Act and issued to provide | 13 | | the proceeds deposited by the State with the System in July | 14 | | 2003, representing deposits other than amounts reserved under | 15 | | Section 7.2(c) of the General Obligation Bond Act. For State | 16 | | fiscal year 2005, the Board shall make a supplemental | 17 | | certification of the additional amount necessary to pay all | 18 | | principal of and interest on those general obligation bonds due | 19 | | in State fiscal years 2004 and 2005 authorized by Section | 20 | | 7.2(a) of the General Obligation Bond Act and issued to provide | 21 | | the proceeds deposited by the State with the System in July | 22 | | 2003, representing deposits other than amounts reserved under | 23 | | Section 7.2(c) of the General Obligation Bond Act, as soon as | 24 | | practical after the effective date of this amendatory Act of | 25 | | the 93rd General Assembly.
| 26 | | On or before May 1, 2004, the Board shall recalculate and |
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| 1 | | recertify
to the Governor and to each department the amount of | 2 | | the required State
contribution to the System and the required | 3 | | rates for State contributions
to the System for State fiscal | 4 | | year 2005, taking into account the amounts
appropriated to and | 5 | | received by the System under subsection (d) of Section
7.2 of | 6 | | the General Obligation Bond Act.
| 7 | | On or before July 1, 2005, the Board shall recalculate and | 8 | | recertify
to the Governor and to each department the amount of | 9 | | the required State
contribution to the System and the required | 10 | | rates for State contributions
to the System for State fiscal | 11 | | year 2006, taking into account the changes in required State | 12 | | contributions made by this amendatory Act of the 94th General | 13 | | Assembly.
| 14 | | On or before April 1, 2011, the Board shall recalculate and | 15 | | recertify to the Governor and to each department the amount of | 16 | | the required State contribution to the System for State fiscal | 17 | | year 2011, applying the changes made by Public Act 96-889 to | 18 | | the System's assets and liabilities as of June 30, 2009 as | 19 | | though Public Act 96-889 was approved on that date. | 20 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| 21 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 22 | | Sec. 15-165. To certify amounts and submit vouchers.
| 23 | | (a) The Board shall certify to the Governor on or before | 24 | | November 15 of each
year the appropriation required from State | 25 | | funds for the purposes of this
System for the following fiscal |
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| 1 | | year. The certification shall include a copy
of the actuarial | 2 | | recommendations upon which it is based and shall specifically | 3 | | identify the System's predicted State normal cost for that | 4 | | fiscal year and the predicted State cost for the self-managed | 5 | | plan for that fiscal year .
| 6 | | On or before May 1, 2004, the Board shall recalculate and | 7 | | recertify to
the Governor the amount of the required State | 8 | | contribution to the System for
State fiscal year 2005, taking | 9 | | into account the amounts appropriated to and
received by the | 10 | | System under subsection (d) of Section 7.2 of the General
| 11 | | Obligation Bond Act.
| 12 | | On or before July 1, 2005, the Board shall recalculate and | 13 | | recertify
to the Governor the amount of the required State
| 14 | | contribution to the System for State fiscal year 2006, taking | 15 | | into account the changes in required State contributions made | 16 | | by this amendatory Act of the 94th General Assembly.
| 17 | | On or before April 1, 2011, the Board shall recalculate and | 18 | | recertify to the Governor the amount of the required State | 19 | | contribution to the System for State fiscal year 2011, applying | 20 | | the changes made by Public Act 96-889 to the System's assets | 21 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 22 | | was approved on that date. | 23 | | (b) The Board shall certify to the State Comptroller or | 24 | | employer, as the
case may be, from time to time, by its | 25 | | president and secretary, with its seal
attached, the amounts | 26 | | payable to the System from the various funds.
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| 1 | | (c) Beginning in State fiscal year 1996, on or as soon as | 2 | | possible after the
15th day of each month the Board shall | 3 | | submit vouchers for payment of State
contributions to the | 4 | | System, in a total monthly amount of one-twelfth of the
| 5 | | required annual State contribution certified under subsection | 6 | | (a).
From the effective date of this amendatory Act
of the 93rd | 7 | | General Assembly through June 30, 2004, the Board shall not
| 8 | | submit vouchers for the remainder of fiscal year 2004 in excess | 9 | | of the
fiscal year 2004 certified contribution amount | 10 | | determined
under this Section after taking into consideration | 11 | | the transfer to the
System under subsection (b) of Section | 12 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 13 | | the State Comptroller and Treasurer by warrants drawn
on the | 14 | | funds appropriated to the System for that fiscal year.
| 15 | | If in any month the amount remaining unexpended from all | 16 | | other
appropriations to the System for the applicable fiscal | 17 | | year (including the
appropriations to the System under Section | 18 | | 8.12 of the State Finance Act and
Section 1 of the State | 19 | | Pension Funds Continuing Appropriation Act) is less than
the | 20 | | amount lawfully vouchered under this Section, the difference | 21 | | shall be paid
from the General Revenue Fund under the | 22 | | continuing appropriation authority
provided in Section 1.1 of | 23 | | the State Pension Funds Continuing Appropriation
Act.
| 24 | | (d) So long as the payments received are the full amount | 25 | | lawfully
vouchered under this Section, payments received by the | 26 | | System under this
Section shall be applied first toward the |
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| 1 | | employer contribution to the
self-managed plan established | 2 | | under Section 15-158.2. Payments shall be
applied second toward | 3 | | the employer's portion of the normal costs of the System,
as | 4 | | defined in subsection (f) of Section 15-155. The balance shall | 5 | | be applied
toward the unfunded actuarial liabilities of the | 6 | | System.
| 7 | | (e) In the event that the System does not receive, as a | 8 | | result of
legislative enactment or otherwise, payments | 9 | | sufficient to
fully fund the employer contribution to the | 10 | | self-managed plan
established under Section 15-158.2 and to | 11 | | fully fund that portion of the
employer's portion of the normal | 12 | | costs of the System, as calculated in
accordance with Section | 13 | | 15-155(a-1), then any payments received shall be
applied | 14 | | proportionately to the optional retirement program established | 15 | | under
Section 15-158.2 and to the employer's portion of the | 16 | | normal costs of the
System, as calculated in accordance with | 17 | | Section 15-155(a-1).
| 18 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| 19 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 20 | | Sec. 16-158. Contributions by State and other employing | 21 | | units.
| 22 | | (a) The State shall make contributions to the System by | 23 | | means of
appropriations from the Common School Fund and other | 24 | | State funds of amounts
which, together with other employer | 25 | | contributions, employee contributions,
investment income, and |
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| 1 | | other income, will be sufficient to meet the cost of
| 2 | | maintaining and administering the System on a 90% funded basis | 3 | | in accordance
with actuarial recommendations.
| 4 | | The Board shall determine the amount of State contributions | 5 | | required for
each fiscal year on the basis of the actuarial | 6 | | tables and other assumptions
adopted by the Board and the | 7 | | recommendations of the actuary, using the formula
in subsection | 8 | | (b-3).
| 9 | | (a-1) Annually, on or before November 15, the Board shall | 10 | | certify to the
Governor the amount of the required State | 11 | | contribution for the coming fiscal
year. The certification | 12 | | shall include a copy of the actuarial recommendations
upon | 13 | | which it is based and shall specifically identify the System's | 14 | | predicted State normal cost for that fiscal year .
| 15 | | On or before May 1, 2004, the Board shall recalculate and | 16 | | recertify to
the Governor the amount of the required State | 17 | | contribution to the System for
State fiscal year 2005, taking | 18 | | into account the amounts appropriated to and
received by the | 19 | | System under subsection (d) of Section 7.2 of the General
| 20 | | Obligation Bond Act.
| 21 | | On or before July 1, 2005 April 1, 2011 , the Board shall | 22 | | recalculate and recertify
to the Governor the amount of the | 23 | | required State
contribution to the System for State fiscal year | 24 | | 2006, taking into account the changes in required State | 25 | | contributions made by this amendatory Act of the 94th General | 26 | | Assembly.
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| 1 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 2 | | recalculate and recertify to the Governor the amount of the | 3 | | required State contribution to the System for State fiscal year | 4 | | 2011, applying the changes made by Public Act 96-889 to the | 5 | | System's assets and liabilities as of June 30, 2009 as though | 6 | | Public Act 96-889 was approved on that date. | 7 | | (b) Through State fiscal year 1995, the State contributions | 8 | | shall be
paid to the System in accordance with Section 18-7 of | 9 | | the School Code.
| 10 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 11 | | of each month,
or as soon thereafter as may be practicable, the | 12 | | Board shall submit vouchers
for payment of State contributions | 13 | | to the System, in a total monthly amount of
one-twelfth of the | 14 | | required annual State contribution certified under
subsection | 15 | | (a-1).
From the
effective date of this amendatory Act of the | 16 | | 93rd General Assembly
through June 30, 2004, the Board shall | 17 | | not submit vouchers for the
remainder of fiscal year 2004 in | 18 | | excess of the fiscal year 2004
certified contribution amount | 19 | | determined under this Section
after taking into consideration | 20 | | the transfer to the System
under subsection (a) of Section | 21 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 22 | | the State Comptroller and
Treasurer by warrants drawn on the | 23 | | funds appropriated to the System for that
fiscal year.
| 24 | | If in any month the amount remaining unexpended from all | 25 | | other appropriations
to the System for the applicable fiscal | 26 | | year (including the appropriations to
the System under Section |
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| 1 | | 8.12 of the State Finance Act and Section 1 of the
State | 2 | | Pension Funds Continuing Appropriation Act) is less than the | 3 | | amount
lawfully vouchered under this subsection, the | 4 | | difference shall be paid from the
Common School Fund under the | 5 | | continuing appropriation authority provided in
Section 1.1 of | 6 | | the State Pension Funds Continuing Appropriation Act.
| 7 | | (b-2) Allocations from the Common School Fund apportioned | 8 | | to school
districts not coming under this System shall not be | 9 | | diminished or affected by
the provisions of this Article.
| 10 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 11 | | contribution
to the System to be made by the State for each | 12 | | fiscal year shall be an amount
determined by the System to be | 13 | | sufficient to bring the total assets of the
System up to 90% of | 14 | | the total actuarial liabilities of the System by the end of
| 15 | | State fiscal year 2045. In making these determinations, the | 16 | | required State
contribution shall be calculated each year as a | 17 | | level percentage of payroll
over the years remaining to and | 18 | | including fiscal year 2045 and shall be
determined under the | 19 | | projected unit credit actuarial cost method.
| 20 | | For State fiscal years 1996 through 2005, the State | 21 | | contribution to the
System, as a percentage of the applicable | 22 | | employee payroll, shall be increased
in equal annual increments | 23 | | so that by State fiscal year 2011, the State is
contributing at | 24 | | the rate required under this Section; except that in the
| 25 | | following specified State fiscal years, the State contribution | 26 | | to the System
shall not be less than the following indicated |
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| 1 | | percentages of the applicable
employee payroll, even if the | 2 | | indicated percentage will produce a State
contribution in | 3 | | excess of the amount otherwise required under this subsection
| 4 | | and subsection (a), and notwithstanding any contrary | 5 | | certification made under
subsection (a-1) before the effective | 6 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 7 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 8 | | 2003; and
13.56% in FY 2004.
| 9 | | Notwithstanding any other provision of this Article, the | 10 | | total required State
contribution for State fiscal year 2006 is | 11 | | $534,627,700.
| 12 | | Notwithstanding any other provision of this Article, the | 13 | | total required State
contribution for State fiscal year 2007 is | 14 | | $738,014,500.
| 15 | | For each of State fiscal years 2008 through 2009, the State | 16 | | contribution to
the System, as a percentage of the applicable | 17 | | employee payroll, shall be
increased in equal annual increments | 18 | | from the required State contribution for State fiscal year | 19 | | 2007, so that by State fiscal year 2011, the
State is | 20 | | contributing at the rate otherwise required under this Section.
| 21 | | Notwithstanding any other provision of this Article, the | 22 | | total required State contribution for State fiscal year 2010 is | 23 | | $2,089,268,000 and shall be made from the proceeds of bonds | 24 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 25 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 26 | | expenses determined by the System's share of total bond |
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| 1 | | proceeds, (ii) any amounts received from the Common School Fund | 2 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 3 | | due to the issuance of discounted bonds, if applicable. | 4 | | Notwithstanding any other provision of this Article, the
| 5 | | total required State contribution for State fiscal year 2011 is
| 6 | | the amount recertified by the System on or before April 1, 2011 | 7 | | pursuant to subsection (a-1) of this Section and shall be made | 8 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 9 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 10 | | pro rata share of bond sale
expenses determined by the System's | 11 | | share of total bond
proceeds, (ii) any amounts received from | 12 | | the Common School Fund
in fiscal year 2011, and (iii) any | 13 | | reduction in bond proceeds
due to the issuance of discounted | 14 | | bonds, if applicable. This amount shall include, in addition to | 15 | | the amount certified by the System, an amount necessary to meet | 16 | | employer contributions required by the State as an employer | 17 | | under paragraph (e) of this Section, which may also be used by | 18 | | the System for contributions required by paragraph (a) of | 19 | | Section 16-127. | 20 | | Beginning in State fiscal year 2046, the minimum State | 21 | | contribution for
each fiscal year shall be the amount needed to | 22 | | maintain the total assets of
the System at 90% of the total | 23 | | actuarial liabilities of the System.
| 24 | | Amounts received by the System pursuant to Section 25 of | 25 | | the Budget Stabilization Act or Section 8.12 of the State | 26 | | Finance Act in any fiscal year do not reduce and do not |
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| 1 | | constitute payment of any portion of the minimum State | 2 | | contribution required under this Article in that fiscal year. | 3 | | Such amounts shall not reduce, and shall not be included in the | 4 | | calculation of, the required State contributions under this | 5 | | Article in any future year until the System has reached a | 6 | | funding ratio of at least 90%. A reference in this Article to | 7 | | the "required State contribution" or any substantially similar | 8 | | term does not include or apply to any amounts payable to the | 9 | | System under Section 25 of the Budget Stabilization Act. | 10 | | Notwithstanding any other provision of this Section, the | 11 | | required State
contribution for State fiscal year 2005 and for | 12 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 13 | | under this Section and
certified under subsection (a-1), shall | 14 | | not exceed an amount equal to (i) the
amount of the required | 15 | | State contribution that would have been calculated under
this | 16 | | Section for that fiscal year if the System had not received any | 17 | | payments
under subsection (d) of Section 7.2 of the General | 18 | | Obligation Bond Act, minus
(ii) the portion of the State's | 19 | | total debt service payments for that fiscal
year on the bonds | 20 | | issued in fiscal year 2003 for the purposes of that Section | 21 | | 7.2, as determined
and certified by the Comptroller, that is | 22 | | the same as the System's portion of
the total moneys | 23 | | distributed under subsection (d) of Section 7.2 of the General
| 24 | | Obligation Bond Act. In determining this maximum for State | 25 | | fiscal years 2008 through 2010, however, the amount referred to | 26 | | in item (i) shall be increased, as a percentage of the |
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| 1 | | applicable employee payroll, in equal increments calculated | 2 | | from the sum of the required State contribution for State | 3 | | fiscal year 2007 plus the applicable portion of the State's | 4 | | total debt service payments for fiscal year 2007 on the bonds | 5 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 6 | | the General
Obligation Bond Act, so that, by State fiscal year | 7 | | 2011, the
State is contributing at the rate otherwise required | 8 | | under this Section.
| 9 | | (c) Payment of the required State contributions and of all | 10 | | pensions,
retirement annuities, death benefits, refunds, and | 11 | | other benefits granted
under or assumed by this System, and all | 12 | | expenses in connection with the
administration and operation | 13 | | thereof, are obligations of the State.
| 14 | | If members are paid from special trust or federal funds | 15 | | which are
administered by the employing unit, whether school | 16 | | district or other
unit, the employing unit shall pay to the | 17 | | System from such
funds the full accruing retirement costs based | 18 | | upon that
service, as determined by the System. Employer | 19 | | contributions, based on
salary paid to members from federal | 20 | | funds, may be forwarded by the distributing
agency of the State | 21 | | of Illinois to the System prior to allocation, in an
amount | 22 | | determined in accordance with guidelines established by such
| 23 | | agency and the System.
| 24 | | (d) Effective July 1, 1986, any employer of a teacher as | 25 | | defined in
paragraph (8) of Section 16-106 shall pay the | 26 | | employer's normal cost
of benefits based upon the teacher's |
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| 1 | | service, in addition to
employee contributions, as determined | 2 | | by the System. Such employer
contributions shall be forwarded | 3 | | monthly in accordance with guidelines
established by the | 4 | | System.
| 5 | | However, with respect to benefits granted under Section | 6 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 7 | | of Section 16-106, the
employer's contribution shall be 12% | 8 | | (rather than 20%) of the member's
highest annual salary rate | 9 | | for each year of creditable service granted, and
the employer | 10 | | shall also pay the required employee contribution on behalf of
| 11 | | the teacher. For the purposes of Sections 16-133.4 and | 12 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 13 | | 16-106 who is serving in that capacity
while on leave of | 14 | | absence from another employer under this Article shall not
be | 15 | | considered an employee of the employer from which the teacher | 16 | | is on leave.
| 17 | | (e) Beginning July 1, 1998, every employer of a teacher
| 18 | | shall pay to the System an employer contribution computed as | 19 | | follows:
| 20 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 21 | | employer
contribution shall be equal to 0.3% of each | 22 | | teacher's salary.
| 23 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 24 | | contribution shall be equal to 0.58% of each teacher's | 25 | | salary.
| 26 | | The school district or other employing unit may pay these |
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| 1 | | employer
contributions out of any source of funding available | 2 | | for that purpose and
shall forward the contributions to the | 3 | | System on the schedule established
for the payment of member | 4 | | contributions.
| 5 | | These employer contributions are intended to offset a | 6 | | portion of the cost
to the System of the increases in | 7 | | retirement benefits resulting from this
amendatory Act of 1998.
| 8 | | Each employer of teachers is entitled to a credit against | 9 | | the contributions
required under this subsection (e) with | 10 | | respect to salaries paid to teachers
for the period January 1, | 11 | | 2002 through June 30, 2003, equal to the amount paid
by that | 12 | | employer under subsection (a-5) of Section 6.6 of the State | 13 | | Employees
Group Insurance Act of 1971 with respect to salaries | 14 | | paid to teachers for that
period.
| 15 | | The additional 1% employee contribution required under | 16 | | Section 16-152 by
this amendatory Act of 1998 is the | 17 | | responsibility of the teacher and not the
teacher's employer, | 18 | | unless the employer agrees, through collective bargaining
or | 19 | | otherwise, to make the contribution on behalf of the teacher.
| 20 | | If an employer is required by a contract in effect on May | 21 | | 1, 1998 between the
employer and an employee organization to | 22 | | pay, on behalf of all its full-time
employees
covered by this | 23 | | Article, all mandatory employee contributions required under
| 24 | | this Article, then the employer shall be excused from paying | 25 | | the employer
contribution required under this subsection (e) | 26 | | for the balance of the term
of that contract. The employer and |
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| 1 | | the employee organization shall jointly
certify to the System | 2 | | the existence of the contractual requirement, in such
form as | 3 | | the System may prescribe. This exclusion shall cease upon the
| 4 | | termination, extension, or renewal of the contract at any time | 5 | | after May 1,
1998.
| 6 | | (f) If the amount of a teacher's salary for any school year | 7 | | used to determine final average salary exceeds the member's | 8 | | annual full-time salary rate with the same employer for the | 9 | | previous school year by more than 6%, the teacher's employer | 10 | | shall pay to the System, in addition to all other payments | 11 | | required under this Section and in accordance with guidelines | 12 | | established by the System, the present value of the increase in | 13 | | benefits resulting from the portion of the increase in salary | 14 | | that is in excess of 6%. This present value shall be computed | 15 | | by the System on the basis of the actuarial assumptions and | 16 | | tables used in the most recent actuarial valuation of the | 17 | | System that is available at the time of the computation. If a | 18 | | teacher's salary for the 2005-2006 school year is used to | 19 | | determine final average salary under this subsection (f), then | 20 | | the changes made to this subsection (f) by Public Act 94-1057 | 21 | | shall apply in calculating whether the increase in his or her | 22 | | salary is in excess of 6%. For the purposes of this Section, | 23 | | change in employment under Section 10-21.12 of the School Code | 24 | | on or after June 1, 2005 shall constitute a change in employer. | 25 | | The System may require the employer to provide any pertinent | 26 | | information or documentation.
The changes made to this |
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| 1 | | subsection (f) by this amendatory Act of the 94th General | 2 | | Assembly apply without regard to whether the teacher was in | 3 | | service on or after its effective date.
| 4 | | Whenever it determines that a payment is or may be required | 5 | | under this subsection, the System shall calculate the amount of | 6 | | the payment and bill the employer for that amount. The bill | 7 | | shall specify the calculations used to determine the amount | 8 | | due. If the employer disputes the amount of the bill, it may, | 9 | | within 30 days after receipt of the bill, apply to the System | 10 | | in writing for a recalculation. The application must specify in | 11 | | detail the grounds of the dispute and, if the employer asserts | 12 | | that the calculation is subject to subsection (g) or (h) of | 13 | | this Section, must include an affidavit setting forth and | 14 | | attesting to all facts within the employer's knowledge that are | 15 | | pertinent to the applicability of that subsection. Upon | 16 | | receiving a timely application for recalculation, the System | 17 | | shall review the application and, if appropriate, recalculate | 18 | | the amount due.
| 19 | | The employer contributions required under this subsection | 20 | | (f) may be paid in the form of a lump sum within 90 days after | 21 | | receipt of the bill. If the employer contributions are not paid | 22 | | within 90 days after receipt of the bill, then interest will be | 23 | | charged at a rate equal to the System's annual actuarially | 24 | | assumed rate of return on investment compounded annually from | 25 | | the 91st day after receipt of the bill. Payments must be | 26 | | concluded within 3 years after the employer's receipt of the |
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| 1 | | bill.
| 2 | | (g) This subsection (g) applies only to payments made or | 3 | | salary increases given on or after June 1, 2005 but before July | 4 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 5 | | require the System to refund any payments received before
July | 6 | | 31, 2006 (the effective date of Public Act 94-1057). | 7 | | When assessing payment for any amount due under subsection | 8 | | (f), the System shall exclude salary increases paid to teachers | 9 | | under contracts or collective bargaining agreements entered | 10 | | into, amended, or renewed before June 1, 2005.
| 11 | | When assessing payment for any amount due under subsection | 12 | | (f), the System shall exclude salary increases paid to a | 13 | | teacher at a time when the teacher is 10 or more years from | 14 | | retirement eligibility under Section 16-132 or 16-133.2.
| 15 | | When assessing payment for any amount due under subsection | 16 | | (f), the System shall exclude salary increases resulting from | 17 | | overload work, including summer school, when the school | 18 | | district has certified to the System, and the System has | 19 | | approved the certification, that (i) the overload work is for | 20 | | the sole purpose of classroom instruction in excess of the | 21 | | standard number of classes for a full-time teacher in a school | 22 | | district during a school year and (ii) the salary increases are | 23 | | equal to or less than the rate of pay for classroom instruction | 24 | | computed on the teacher's current salary and work schedule.
| 25 | | When assessing payment for any amount due under subsection | 26 | | (f), the System shall exclude a salary increase resulting from |
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| 1 | | a promotion (i) for which the employee is required to hold a | 2 | | certificate or supervisory endorsement issued by the State | 3 | | Teacher Certification Board that is a different certification | 4 | | or supervisory endorsement than is required for the teacher's | 5 | | previous position and (ii) to a position that has existed and | 6 | | been filled by a member for no less than one complete academic | 7 | | year and the salary increase from the promotion is an increase | 8 | | that results in an amount no greater than the lesser of the | 9 | | average salary paid for other similar positions in the district | 10 | | requiring the same certification or the amount stipulated in | 11 | | the collective bargaining agreement for a similar position | 12 | | requiring the same certification.
| 13 | | When assessing payment for any amount due under subsection | 14 | | (f), the System shall exclude any payment to the teacher from | 15 | | the State of Illinois or the State Board of Education over | 16 | | which the employer does not have discretion, notwithstanding | 17 | | that the payment is included in the computation of final | 18 | | average salary.
| 19 | | (h) When assessing payment for any amount due under | 20 | | subsection (f), the System shall exclude any salary increase | 21 | | described in subsection (g) of this Section given on or after | 22 | | July 1, 2011 but before July 1, 2014 under a contract or | 23 | | collective bargaining agreement entered into, amended, or | 24 | | renewed on or after June 1, 2005 but before July 1, 2011. | 25 | | Notwithstanding any other provision of this Section, any | 26 | | payments made or salary increases given after June 30, 2014 |
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| 1 | | shall be used in assessing payment for any amount due under | 2 | | subsection (f) of this Section.
| 3 | | (i) The System shall prepare a report and file copies of | 4 | | the report with the Governor and the General Assembly by | 5 | | January 1, 2007 that contains all of the following information: | 6 | | (1) The number of recalculations required by the | 7 | | changes made to this Section by Public Act 94-1057 for each | 8 | | employer. | 9 | | (2) The dollar amount by which each employer's | 10 | | contribution to the System was changed due to | 11 | | recalculations required by Public Act 94-1057. | 12 | | (3) The total amount the System received from each | 13 | | employer as a result of the changes made to this Section by | 14 | | Public Act 94-4. | 15 | | (4) The increase in the required State contribution | 16 | | resulting from the changes made to this Section by Public | 17 | | Act 94-1057.
| 18 | | (j) For purposes of determining the required State | 19 | | contribution to the System, the value of the System's assets | 20 | | shall be equal to the actuarial value of the System's assets, | 21 | | which shall be calculated as follows: | 22 | | As of June 30, 2008, the actuarial value of the System's | 23 | | assets shall be equal to the market value of the assets as of | 24 | | that date. In determining the actuarial value of the System's | 25 | | assets for fiscal years after June 30, 2008, any actuarial | 26 | | gains or losses from investment return incurred in a fiscal |
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| 1 | | year shall be recognized in equal annual amounts over the | 2 | | 5-year period following that fiscal year. | 3 | | (k) For purposes of determining the required State | 4 | | contribution to the system for a particular year, the actuarial | 5 | | value of assets shall be assumed to earn a rate of return equal | 6 | | to the system's actuarially assumed rate of return. | 7 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 8 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 9 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
| 10 | | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 11 | | Sec. 18-140. To certify required State contributions and | 12 | | submit vouchers.
| 13 | | (a) The Board shall certify to the Governor, on or before | 14 | | November 15 of
each year, the amount of the required State | 15 | | contribution to the System for the
following fiscal year. The | 16 | | certification shall include a copy of the actuarial
| 17 | | recommendations upon which it is based and shall specifically | 18 | | identify the System's predicted State normal cost for that | 19 | | fiscal year .
| 20 | | On or before May 1, 2004, the Board shall recalculate and | 21 | | recertify to
the Governor the amount of the required State | 22 | | contribution to the System for
State fiscal year 2005, taking | 23 | | into account the amounts appropriated to and
received by the | 24 | | System under subsection (d) of Section 7.2 of the General
| 25 | | Obligation Bond Act.
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| 1 | | On or before July 1, 2005, the Board shall recalculate and | 2 | | recertify
to the Governor the amount of the required State
| 3 | | contribution to the System for State fiscal year 2006, taking | 4 | | into account the changes in required State contributions made | 5 | | by this amendatory Act of the 94th General Assembly.
| 6 | | On or before April 1, 2011, the Board shall recalculate and | 7 | | recertify to the Governor the amount of the required State | 8 | | contribution to the System for State fiscal year 2011, applying | 9 | | the changes made by Public Act 96-889 to the System's assets | 10 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 11 | | was approved on that date. | 12 | | (b) Beginning in State fiscal year 1996, on or as soon as | 13 | | possible after
the 15th day of each month the Board shall | 14 | | submit vouchers for payment of State
contributions to the | 15 | | System, in a total monthly amount of one-twelfth of the
| 16 | | required annual State contribution certified under subsection | 17 | | (a).
From the effective date of this amendatory Act
of the 93rd | 18 | | General Assembly through June 30, 2004, the Board shall not
| 19 | | submit vouchers for the remainder of fiscal year 2004 in excess | 20 | | of the
fiscal year 2004 certified contribution amount | 21 | | determined
under this Section after taking into consideration | 22 | | the transfer to the
System under subsection (c) of Section | 23 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 24 | | the State Comptroller and Treasurer by warrants drawn
on the | 25 | | funds appropriated to the System for that fiscal year.
| 26 | | If in any month the amount remaining unexpended from all |
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| 1 | | other
appropriations to the System for the applicable fiscal | 2 | | year (including the
appropriations to the System under Section | 3 | | 8.12 of the State Finance Act and
Section 1 of the State | 4 | | Pension Funds Continuing Appropriation Act) is less than
the | 5 | | amount lawfully vouchered under this Section, the difference | 6 | | shall be paid
from the General Revenue Fund under the | 7 | | continuing appropriation authority
provided in Section 1.1 of | 8 | | the State Pension Funds Continuing Appropriation
Act.
| 9 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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