Full Text of SB1673 97th General Assembly
SB1673ham004 97TH GENERAL ASSEMBLY | Rep. Tom Cross Filed: 5/29/2012
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| 1 | | AMENDMENT TO SENATE BILL 1673
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED, | 3 | | with reference to page and line numbers of House Amendment No. | 4 | | No. 3 as follows:
| 5 | | on page 15, line 24, after " Section " insert " 2-110.3, "; and | 6 | | on page 16, line 4, after " Section " insert " 2-110.3, "; and | 7 | | on page 17, line 12, after " Section " insert " 2-110.3, "; and | 8 | | on page 18, line 7, after " Section " insert " 2-110.3, "; and | 9 | | on page 18, line 19, after " Section " insert " 2-110.3, "; and | 10 | | on page 25, line 3, delete "16-163, 16-165,"; and | 11 | | on page 25, line 8, after "16-131.7," insert "and", and delete |
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| 1 | | ", and 16-158.2"; and | 2 | | replace page 242, line 2, through page 268, line 5, with the | 3 | | following:
| 4 | | "(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 5 | | Sec. 16-158. Contributions by State and other employing | 6 | | units.
| 7 | | (a) Except as otherwise provided in this Section, the The | 8 | | State shall make contributions to the System by means of
| 9 | | appropriations from the Common School Fund and other State | 10 | | funds of amounts
which, together with other employer | 11 | | contributions, employee contributions,
investment income, and | 12 | | other income, will be sufficient to meet the cost of
| 13 | | maintaining and administering the System on a 90% funded basis | 14 | | in accordance
with actuarial recommendations.
| 15 | | The Board shall determine the amount of State contributions | 16 | | required for
each fiscal year on the basis of the actuarial | 17 | | tables and other assumptions
adopted by the Board and the | 18 | | recommendations of the actuary, using the formula
in subsection | 19 | | (b-3).
| 20 | | (a-1) Annually, on or before November 15, the Board shall | 21 | | certify to the
Governor the amount of the required State | 22 | | contribution for the coming fiscal
year. The certification | 23 | | shall include a copy of the actuarial recommendations
upon | 24 | | which it is based.
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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 April 1, 2011 , the Board shall | 8 | | recalculate and recertify
to the Governor the amount of the | 9 | | required State
contribution to the System for State fiscal year | 10 | | 2006, taking into account the changes in required State | 11 | | contributions made by this amendatory Act of the 94th General | 12 | | Assembly.
| 13 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 14 | | recalculate and recertify to the Governor the amount of the | 15 | | required State contribution to the System for State fiscal year | 16 | | 2011, applying the changes made by Public Act 96-889 to the | 17 | | System's assets and liabilities as of June 30, 2009 as though | 18 | | Public Act 96-889 was approved on that date. | 19 | | (a-5) On or before November 1 of each year, beginning | 20 | | November 1, 2012, the Board shall submit to the State Actuary a | 21 | | proposed certification of the amount of the required State | 22 | | contribution to the System for the next fiscal year, along with | 23 | | all of the actuarial assumptions, calculations, and data upon | 24 | | which that proposed certification is based. On or before | 25 | | January 1 of each year beginning January 1, 2013, the State | 26 | | Actuary shall issue a preliminary report concerning the |
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| 1 | | proposed certification and identifying, if necessary, | 2 | | recommended changes in actuarial assumptions that the Board | 3 | | must consider before finalizing its certification of the | 4 | | required State contributions. On or before January 15, 2013 and | 5 | | each January 15 thereafter, the Board shall certify to the | 6 | | Governor and the General Assembly the amount of the required | 7 | | State contribution for the next fiscal year. The Board's | 8 | | certification must note any deviations from the State Actuary's | 9 | | recommended changes, the reason or reasons for not following | 10 | | the State Actuary's recommended changes, and the fiscal impact | 11 | | of not following the State Actuary's recommended changes on the | 12 | | required State contribution. | 13 | | (b) Through State fiscal year 1995, the State contributions | 14 | | shall be
paid to the System in accordance with Section 18-7 of | 15 | | the School Code.
| 16 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 17 | | of each month,
or as soon thereafter as may be practicable, the | 18 | | Board shall submit vouchers
for payment of State contributions | 19 | | to the System, in a total monthly amount of
one-twelfth of the | 20 | | required annual State contribution certified under
subsection | 21 | | (a-1).
From the
effective date of this amendatory Act of the | 22 | | 93rd General Assembly
through June 30, 2004, the Board shall | 23 | | not submit vouchers for the
remainder of fiscal year 2004 in | 24 | | excess of the fiscal year 2004
certified contribution amount | 25 | | determined under this Section
after taking into consideration | 26 | | the transfer to the System
under subsection (a) of Section |
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| 1 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 2 | | the State Comptroller and
Treasurer by warrants drawn on the | 3 | | funds appropriated to the System for that
fiscal year.
| 4 | | If in any month the amount remaining unexpended from all | 5 | | other appropriations
to the System for the applicable fiscal | 6 | | year (including the appropriations to
the System under Section | 7 | | 8.12 of the State Finance Act and Section 1 of the
State | 8 | | Pension Funds Continuing Appropriation Act) is less than the | 9 | | amount
lawfully vouchered under this subsection, the | 10 | | difference shall be paid from the
Common School Fund under the | 11 | | continuing appropriation authority provided in
Section 1.1 of | 12 | | the State Pension Funds Continuing Appropriation Act.
| 13 | | (b-2) Allocations from the Common School Fund apportioned | 14 | | to school
districts not coming under this System shall not be | 15 | | diminished or affected by
the provisions of this Article.
| 16 | | (b-3) For State fiscal years 2012 and 2013 through 2045 , | 17 | | the minimum contribution
to the System to be made by the State | 18 | | for each fiscal year shall be an amount
determined by the | 19 | | System to be sufficient to bring the total assets of the
System | 20 | | up to 90% of the total actuarial liabilities of the System by | 21 | | the end of
State fiscal year 2045. In making these | 22 | | determinations, the required State
contribution shall be | 23 | | calculated each year as a level percentage of payroll
over the | 24 | | years remaining to and including fiscal year 2045 and shall be
| 25 | | determined under the projected unit credit actuarial cost | 26 | | method.
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| 1 | | For State fiscal years 1996 through 2005, the State | 2 | | contribution to the
System, as a percentage of the applicable | 3 | | employee payroll, shall be increased
in equal annual increments | 4 | | so that by State fiscal year 2011, the State is
contributing at | 5 | | the rate required under this Section; except that in the
| 6 | | following specified State fiscal years, the State contribution | 7 | | to the System
shall not be less than the following indicated | 8 | | percentages of the applicable
employee payroll, even if the | 9 | | indicated percentage will produce a State
contribution in | 10 | | excess of the amount otherwise required under this subsection
| 11 | | and subsection (a), and notwithstanding any contrary | 12 | | certification made under
subsection (a-1) before the effective | 13 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 14 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 15 | | 2003; and
13.56% in FY 2004.
| 16 | | Notwithstanding any other provision of this Article, the | 17 | | total required State
contribution for State fiscal year 2006 is | 18 | | $534,627,700.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State
contribution for State fiscal year 2007 is | 21 | | $738,014,500.
| 22 | | For each of State fiscal years 2008 through 2009, the State | 23 | | contribution to
the System, as a percentage of the applicable | 24 | | employee payroll, shall be
increased in equal annual increments | 25 | | from the required State contribution for State fiscal year | 26 | | 2007, so that by State fiscal year 2011, the
State is |
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| 1 | | contributing at the rate otherwise required under this Section.
| 2 | | Notwithstanding any other provision of this Article, the | 3 | | total required State contribution for State fiscal year 2010 is | 4 | | $2,089,268,000 and shall be made from the proceeds of bonds | 5 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 6 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 7 | | expenses determined by the System's share of total bond | 8 | | proceeds, (ii) any amounts received from the Common School Fund | 9 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 10 | | due to the issuance of discounted bonds, if applicable. | 11 | | Notwithstanding any other provision of this Article, the
| 12 | | total required State contribution for State fiscal year 2011 is
| 13 | | the amount recertified by the System on or before April 1, 2011 | 14 | | pursuant to subsection (a-1) of this Section and shall be made | 15 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 16 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 17 | | pro rata share of bond sale
expenses determined by the System's | 18 | | share of total bond
proceeds, (ii) any amounts received from | 19 | | the Common School Fund
in fiscal year 2011, and (iii) any | 20 | | reduction in bond proceeds
due to the issuance of discounted | 21 | | bonds, if applicable. This amount shall include, in addition to | 22 | | the amount certified by the System, an amount necessary to meet | 23 | | employer contributions required by the State as an employer | 24 | | under paragraph (e) of this Section, which may also be used by | 25 | | the System for contributions required by paragraph (a) of | 26 | | Section 16-127. |
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| 1 | | Beginning in State fiscal year 2046, the minimum State | 2 | | contribution for
each fiscal year shall be the amount needed to | 3 | | maintain the total assets of
the System at 90% of the total | 4 | | actuarial liabilities of the System.
| 5 | | Amounts received by the System pursuant to Section 25 of | 6 | | the Budget Stabilization Act or Section 8.12 of the State | 7 | | Finance Act in any fiscal year do not reduce and do not | 8 | | constitute payment of any portion of the minimum State | 9 | | contribution required under this Article in that fiscal year. | 10 | | Such amounts shall not reduce, and shall not be included in the | 11 | | calculation of, the required State contributions under this | 12 | | Article in any future year until the System has reached a | 13 | | funding ratio of at least 90%. A reference in this Article to | 14 | | the "required State contribution" or any substantially similar | 15 | | term does not include or apply to any amounts payable to the | 16 | | System under Section 25 of the Budget Stabilization Act. | 17 | | Notwithstanding any other provision of this Section, the | 18 | | required State
contribution for State fiscal year 2005 and for | 19 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 20 | | under this Section and
certified under subsection (a-1), shall | 21 | | not exceed an amount equal to (i) the
amount of the required | 22 | | State contribution that would have been calculated under
this | 23 | | Section for that fiscal year if the System had not received any | 24 | | payments
under subsection (d) of Section 7.2 of the General | 25 | | Obligation Bond Act, minus
(ii) the portion of the State's | 26 | | total debt service payments for that fiscal
year on the bonds |
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| 1 | | issued in fiscal year 2003 for the purposes of that Section | 2 | | 7.2, as determined
and certified by the Comptroller, that is | 3 | | the same as the System's portion of
the total moneys | 4 | | distributed under subsection (d) of Section 7.2 of the General
| 5 | | Obligation Bond Act. In determining this maximum for State | 6 | | fiscal years 2008 through 2010, however, the amount referred to | 7 | | in item (i) shall be increased, as a percentage of the | 8 | | applicable employee payroll, in equal increments calculated | 9 | | from the sum of the required State contribution for State | 10 | | fiscal year 2007 plus the applicable portion of the State's | 11 | | total debt service payments for fiscal year 2007 on the bonds | 12 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 13 | | the General
Obligation Bond Act, so that, by State fiscal year | 14 | | 2011, the
State is contributing at the rate otherwise required | 15 | | under this Section.
| 16 | | (b-5) If at least 50% of Tier I employees making an | 17 | | election under Section 16-131.7 before June 1, 2013 choose the | 18 | | option under paragraph (1) of subsection (a) of that Section, | 19 | | then: | 20 | | (1) In lieu of the State contributions required under | 21 | | subsection (e), for State fiscal years 2014 through 2043 | 22 | | the minimum contribution to the System to be made by the | 23 | | State for each fiscal year shall be an amount determined by | 24 | | the System to be equal to the sum of (1) the State's | 25 | | portion of the projected normal cost for that fiscal year, | 26 | | plus (2) an amount sufficient to bring the total assets of |
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| 1 | | the System up to 100% of the total actuarial liabilities of | 2 | | the System by the end of
State fiscal year 2043. In making | 3 | | these determinations, the required State contribution | 4 | | shall be calculated each year as a level percentage of | 5 | | payroll over the years remaining to and including fiscal | 6 | | year 2043 and shall be determined under the projected unit | 7 | | credit actuarial cost method. | 8 | | (2) Beginning in State fiscal year 2044, the minimum | 9 | | State contribution for each fiscal year shall be the amount | 10 | | needed to maintain the total assets of the System at 100% | 11 | | of the total actuarial liabilities of the System. | 12 | | (b-6) If less than 50% of Tier I employees making an | 13 | | election under Section 17-131.7 before June 1, 2013 choose the | 14 | | option under paragraph (1) of subsection (a) of that Section, | 15 | | then: | 16 | | (1) Instead of the annual required contribution | 17 | | otherwise specified in subsection (b-5) of this Section, | 18 | | the annual required contribution to the System to be made | 19 | | by the State shall be determined under subsection (e) of | 20 | | this Section. | 21 | | (2) As soon as possible after June 1, 2014, the Board | 22 | | shall recertify the annual required contribution by the | 23 | | State for State fiscal year 2015. | 24 | | (c) Payment of the required State contributions and of all | 25 | | pensions,
retirement annuities, death benefits, refunds, and | 26 | | other benefits granted
under or assumed by this System, and all |
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| 1 | | expenses in connection with the
administration and operation | 2 | | thereof, are obligations of the State.
| 3 | | If members are paid from special trust or federal funds | 4 | | which are
administered by the employing unit, whether school | 5 | | district or other
unit, the employing unit shall pay to the | 6 | | System from such
funds the full accruing retirement costs based | 7 | | upon that
service, as determined by the System. Employer | 8 | | contributions, based on
salary paid to members from federal | 9 | | funds, may be forwarded by the distributing
agency of the State | 10 | | of Illinois to the System prior to allocation, in an
amount | 11 | | determined in accordance with guidelines established by such
| 12 | | agency and the System.
| 13 | | (d) Effective July 1, 1986, any employer of a teacher as | 14 | | defined in
paragraph (8) of Section 16-106 shall pay the | 15 | | employer's normal cost
of benefits based upon the teacher's | 16 | | service, in addition to
employee contributions, as determined | 17 | | by the System. Such employer
contributions shall be forwarded | 18 | | monthly in accordance with guidelines
established by the | 19 | | System.
| 20 | | However, with respect to benefits granted under Section | 21 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 22 | | of Section 16-106, the
employer's contribution shall be 12% | 23 | | (rather than 20%) of the member's
highest annual salary rate | 24 | | for each year of creditable service granted, and
the employer | 25 | | shall also pay the required employee contribution on behalf of
| 26 | | the teacher. For the purposes of Sections 16-133.4 and |
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| 1 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 2 | | 16-106 who is serving in that capacity
while on leave of | 3 | | absence from another employer under this Article shall not
be | 4 | | considered an employee of the employer from which the teacher | 5 | | is on leave.
| 6 | | (e) Beginning July 1, 1998, every employer of a teacher
| 7 | | shall pay to the System an employer contribution computed as | 8 | | follows:
| 9 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 10 | | employer
contribution shall be equal to 0.3% of each | 11 | | teacher's salary.
| 12 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 13 | | contribution shall be equal to 0.58% of each teacher's | 14 | | salary.
| 15 | | The school district or other employing unit may pay these | 16 | | employer
contributions out of any source of funding available | 17 | | for that purpose and
shall forward the contributions to the | 18 | | System on the schedule established
for the payment of member | 19 | | contributions.
| 20 | | These employer contributions are intended to offset a | 21 | | portion of the cost
to the System of the increases in | 22 | | retirement benefits resulting from this
amendatory Act of 1998.
| 23 | | Each employer of teachers is entitled to a credit against | 24 | | the contributions
required under this subsection (e) with | 25 | | respect to salaries paid to teachers
for the period January 1, | 26 | | 2002 through June 30, 2003, equal to the amount paid
by that |
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| 1 | | employer under subsection (a-5) of Section 6.6 of the State | 2 | | Employees
Group Insurance Act of 1971 with respect to salaries | 3 | | paid to teachers for that
period.
| 4 | | The additional 1% employee contribution required under | 5 | | Section 16-152 by
this amendatory Act of 1998 is the | 6 | | responsibility of the teacher and not the
teacher's employer, | 7 | | unless the employer agrees, through collective bargaining
or | 8 | | otherwise, to make the contribution on behalf of the teacher.
| 9 | | If an employer is required by a contract in effect on May | 10 | | 1, 1998 between the
employer and an employee organization to | 11 | | pay, on behalf of all its full-time
employees
covered by this | 12 | | Article, all mandatory employee contributions required under
| 13 | | this Article, then the employer shall be excused from paying | 14 | | the employer
contribution required under this subsection (e) | 15 | | for the balance of the term
of that contract. The employer and | 16 | | the employee organization shall jointly
certify to the System | 17 | | the existence of the contractual requirement, in such
form as | 18 | | the System may prescribe. This exclusion shall cease upon the
| 19 | | termination, extension, or renewal of the contract at any time | 20 | | after May 1,
1998.
| 21 | | (f) If the amount of a teacher's salary for any school year | 22 | | used to determine final average salary exceeds the member's | 23 | | annual full-time salary rate with the same employer for the | 24 | | previous school year by more than 6% , the teacher's employer | 25 | | shall pay to the System, in addition to all other payments | 26 | | required under this Section and in accordance with guidelines |
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| 1 | | established by the System, the present value of the increase in | 2 | | benefits resulting from the portion of the increase in salary | 3 | | that is in excess of 6% . This present value shall be computed | 4 | | by the System on the basis of the actuarial assumptions and | 5 | | tables used in the most recent actuarial valuation of the | 6 | | System that is available at the time of the computation. If a | 7 | | teacher's salary for the 2005-2006 school year is used to | 8 | | determine final average salary under this subsection (f), then | 9 | | the changes made to this subsection (f) by Public Act 94-1057 | 10 | | shall apply in calculating whether the increase in his or her | 11 | | salary is in excess of 6%. For the purposes of this Section, | 12 | | change in employment under Section 10-21.12 of the School Code | 13 | | on or after June 1, 2005 shall constitute a change in employer. | 14 | | The System may require the employer to provide any pertinent | 15 | | information or documentation.
The changes made to this | 16 | | subsection (f) by this amendatory Act of the 94th General | 17 | | Assembly apply without regard to whether the teacher was in | 18 | | service on or after its effective date.
The changes to this | 19 | | subsection (removing the 6% increase permitted without payment | 20 | | to the System by the employer) made by this amendatory Act of | 21 | | the 97th General Assembly do not apply to a teacher who is | 22 | | covered by a collective bargaining agreement or employment | 23 | | contract in effect on the effective date of this amendatory Act | 24 | | that provides for such increases, until such time as that | 25 | | agreement or contract expires or is amended or renewed. | 26 | | Whenever it determines that a payment is or may be required |
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| 1 | | under this subsection, the System shall calculate the amount of | 2 | | the payment and bill the employer for that amount. The bill | 3 | | shall specify the calculations used to determine the amount | 4 | | due. If the employer disputes the amount of the bill, it may, | 5 | | within 30 days after receipt of the bill, apply to the System | 6 | | in writing for a recalculation. The application must specify in | 7 | | detail the grounds of the dispute and, if the employer asserts | 8 | | that the calculation is subject to subsection (g) or (h) of | 9 | | this Section, must include an affidavit setting forth and | 10 | | attesting to all facts within the employer's knowledge that are | 11 | | pertinent to the applicability of that subsection. Upon | 12 | | receiving a timely application for recalculation, the System | 13 | | shall review the application and, if appropriate, recalculate | 14 | | the amount due.
| 15 | | The employer contributions required under this subsection | 16 | | (f) may be paid in the form of a lump sum within 90 days after | 17 | | receipt of the bill. If the employer contributions are not paid | 18 | | within 90 days after receipt of the bill, then interest will be | 19 | | charged at a rate equal to the System's annual actuarially | 20 | | assumed rate of return on investment compounded annually from | 21 | | the 91st day after receipt of the bill. Payments must be | 22 | | concluded within 3 years after the employer's receipt of the | 23 | | bill.
| 24 | | (g) This subsection (g) applies only to payments made or | 25 | | salary increases given on or after June 1, 2005 but before July | 26 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
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| 1 | | require the System to refund any payments received before
July | 2 | | 31, 2006 (the effective date of Public Act 94-1057). | 3 | | When assessing payment for any amount due under subsection | 4 | | (f), the System shall exclude salary increases paid to teachers | 5 | | under contracts or collective bargaining agreements entered | 6 | | into, amended, or renewed before June 1, 2005.
| 7 | | When assessing payment for any amount due under subsection | 8 | | (f), the System shall exclude salary increases paid to a | 9 | | teacher at a time when the teacher is 10 or more years from | 10 | | retirement eligibility under Section 16-132 or 16-133.2.
| 11 | | When assessing payment for any amount due under subsection | 12 | | (f), the System shall exclude salary increases resulting from | 13 | | overload work, including summer school, when the school | 14 | | district has certified to the System, and the System has | 15 | | approved the certification, that (i) the overload work is for | 16 | | the sole purpose of classroom instruction in excess of the | 17 | | standard number of classes for a full-time teacher in a school | 18 | | district during a school year and (ii) the salary increases are | 19 | | equal to or less than the rate of pay for classroom instruction | 20 | | computed on the teacher's current salary and work schedule.
| 21 | | When assessing payment for any amount due under subsection | 22 | | (f), the System shall exclude a salary increase resulting from | 23 | | a promotion (i) for which the employee is required to hold a | 24 | | certificate or supervisory endorsement issued by the State | 25 | | Teacher Certification Board that is a different certification | 26 | | or supervisory endorsement than is required for the teacher's |
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| 1 | | previous position and (ii) to a position that has existed and | 2 | | been filled by a member for no less than one complete academic | 3 | | year and the salary increase from the promotion is an increase | 4 | | that results in an amount no greater than the lesser of the | 5 | | average salary paid for other similar positions in the district | 6 | | requiring the same certification or the amount stipulated in | 7 | | the collective bargaining agreement for a similar position | 8 | | requiring the same certification.
| 9 | | When assessing payment for any amount due under subsection | 10 | | (f), the System shall exclude any payment to the teacher from | 11 | | the State of Illinois or the State Board of Education over | 12 | | which the employer does not have discretion, notwithstanding | 13 | | that the payment is included in the computation of final | 14 | | average salary.
| 15 | | (h) When assessing payment for any amount due under | 16 | | subsection (f), the System shall exclude any salary increase | 17 | | described in subsection (g) of this Section given on or after | 18 | | July 1, 2011 but before July 1, 2014 under a contract or | 19 | | collective bargaining agreement entered into, amended, or | 20 | | renewed on or after June 1, 2005 but before July 1, 2011. | 21 | | Notwithstanding any other provision of this Section, any | 22 | | payments made or salary increases given after June 30, 2014 | 23 | | shall be used in assessing payment for any amount due under | 24 | | subsection (f) of this Section.
| 25 | | (i) The System shall prepare a report and file copies of | 26 | | the report with the Governor and the General Assembly by |
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| 1 | | January 1, 2007 that contains all of the following information: | 2 | | (1) The number of recalculations required by the | 3 | | changes made to this Section by Public Act 94-1057 for each | 4 | | employer. | 5 | | (2) The dollar amount by which each employer's | 6 | | contribution to the System was changed due to | 7 | | recalculations required by Public Act 94-1057. | 8 | | (3) The total amount the System received from each | 9 | | employer as a result of the changes made to this Section by | 10 | | Public Act 94-4. | 11 | | (4) The increase in the required State contribution | 12 | | resulting from the changes made to this Section by Public | 13 | | Act 94-1057.
| 14 | | (j) For purposes of determining the required State | 15 | | contribution to the System, the value of the System's assets | 16 | | shall be equal to the actuarial value of the System's assets, | 17 | | which shall be calculated as follows: | 18 | | As of June 30, 2008, the actuarial value of the System's | 19 | | assets shall be equal to the market value of the assets as of | 20 | | that date. In determining the actuarial value of the System's | 21 | | assets for fiscal years after June 30, 2008, any actuarial | 22 | | gains or losses from investment return incurred in a fiscal | 23 | | year shall be recognized in equal annual amounts over the | 24 | | 5-year period following that fiscal year. | 25 | | (k) For purposes of determining the required State | 26 | | contribution to the system for a particular year, the actuarial |
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| 1 | | value of assets shall be assumed to earn a rate of return equal | 2 | | to the system's actuarially assumed rate of return. | 3 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 4 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 5 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)".
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