Full Text of SB3111 97th General Assembly
SB3111sam001 97TH GENERAL ASSEMBLY | Sen. Dale A. Righter Filed: 5/31/2012
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| 1 | | AMENDMENT TO SENATE BILL 3111
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3111 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. The State Employees Group Insurance Act of 1971 | 5 | | is amended by adding Section 6.16 as follows: | 6 | | (5 ILCS 375/6.16 new) | 7 | | Sec. 6.16. Health benefit election for Tier I employees and | 8 | | Tier I retirees. | 9 | | (a) For purposes of this Section: | 10 | | "Eligible Tier I employee" means an individual who makes or | 11 | | is deemed to have made an election under paragraph (1) of | 12 | | subsection (a) of Section 2-110.3 of the Illinois Pension Code. | 13 | | "Eligible Tier I retiree" means an individual who makes or | 14 | | is deemed to have made an election under paragraph (1) of | 15 | | subsection (a-5) of Section 2-110.3 of the Illinois Pension | 16 | | Code. |
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| 1 | | "Program of health benefits" means (i) a health plan, as | 2 | | defined in subsection (o) of Section 3 of this Act, that is | 3 | | designed and contracted for by the Director under this Act or | 4 | | any successor Act or (ii) if administration of that health plan | 5 | | is transferred to a trust established by the State or an | 6 | | independent Board in order to provide health benefits to a | 7 | | class of a persons that includes eligible Tier I retirees, then | 8 | | the plan of health benefits provided through that trust. | 9 | | (b) As adequate and legal consideration for making the | 10 | | election under paragraph (1) of subsection (a) or (a-5) of | 11 | | Section 2-110.3 of the Illinois Pension Code, each eligible | 12 | | Tier I employee and each eligible Tier I retiree shall receive | 13 | | a vested and enforceable contractual right to participate in a | 14 | | program of health benefits while he or she qualifies as an | 15 | | annuitant or retired employee. That right also extends to such | 16 | | a person's dependents and survivors if they are eligible under | 17 | | the applicable program of health benefits. | 18 | | (c) Notwithstanding subsection (b), eligible Tier I | 19 | | employees and eligible Tier I retirees may be required to make | 20 | | contributions toward the cost of coverage under a program of | 21 | | health benefits. | 22 | | (d) The vested and enforceable contractual right to a | 23 | | program of health benefits is not offered as, and shall not be | 24 | | considered, a pension benefit under Article XIII, Section 5 of | 25 | | the Illinois Constitution, the Illinois Pension Code, or any | 26 | | subsequent or successor enactment providing pension benefits. |
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| 1 | | (e) Notwithstanding any other provision of this Act, a Tier | 2 | | I employee or Tier I retiree who has made an election under | 3 | | paragraph (2) of subsection (a) or (a-5) of Section 2-110.3 of | 4 | | the Illinois Pension Code shall not be entitled to participate | 5 | | in the program of health benefits as an annuitant or retired | 6 | | employee. | 7 | | Notwithstanding any other provision of this Act, a Tier I | 8 | | employee who is not entitled to participate in the program of | 9 | | health benefits as an annuitant or retired employee due to an | 10 | | election under paragraph (2) of subsection (a) or (a-5) of | 11 | | Section 2-110.3 of the Illinois Pension Code shall not be | 12 | | required to make contributions toward the program of health | 13 | | benefits while he or she is an employee. | 14 | | Section 5. The Illinois Pension Code is amended by changing | 15 | | Sections 2-108, 2-119.1, 2-124, and 2-134 and by adding | 16 | | Sections 2-105.1, 2-105.2, 2-107.9, and 2-110.3 as follows: | 17 | | (40 ILCS 5/2-105.1 new) | 18 | | Sec. 2-105.1. Tier I employee. "Tier I employee": A | 19 | | participant who first became a participant before January 1, | 20 | | 2011. | 21 | | (40 ILCS 5/2-105.2 new) | 22 | | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | 23 | | former Tier I employee who is receiving a retirement annuity. |
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| 1 | | (40 ILCS 5/2-107.9 new) | 2 | | Sec. 2-107.9. Future increase in income. "Future increase | 3 | | in income": Any increase in income in any form offered for | 4 | | service as a member under this Article after June 30, 2013 that | 5 | | would qualify as "salary", as defined under Section 2-108, but | 6 | | for the fact that the increase in income was offered to the | 7 | | member on the condition that it not qualify as salary and was | 8 | | accepted by the member subject to that condition.
| 9 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| 10 | | Sec. 2-108. Salary. "Salary": (1) For members of the | 11 | | General Assembly,
the total compensation paid to the member by | 12 | | the State for one
year of service, including the additional | 13 | | amounts, if any, paid to
the member as an officer pursuant to | 14 | | Section 1 of "An Act
in relation to the compensation and | 15 | | emoluments of the members of the
General Assembly", approved | 16 | | December 6, 1907, as now or hereafter
amended.
| 17 | | (2) For the State executive officers specified
in Section | 18 | | 2-105, the total compensation paid to the member for one year
| 19 | | of service.
| 20 | | (3) For members of the System who are participants under | 21 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | 22 | | of the House of
Representatives or Secretary or Assistant | 23 | | Secretary of the Senate, the
total compensation paid to the | 24 | | member for one year of service, but not to
exceed the salary of |
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| 1 | | the highest salaried officer of the General Assembly.
| 2 | | However, in the event that federal law results in any | 3 | | participant
receiving imputed income based on the value of | 4 | | group term life insurance
provided by the State, such imputed | 5 | | income shall not be included in salary
for the purposes of this | 6 | | Article.
| 7 | | Notwithstanding any other provision of this Section, | 8 | | "salary" does not include any future increase in income that is | 9 | | offered for service as a member under this Article pursuant to | 10 | | the requirements of subsection (c) of Section 2-110.3 and | 11 | | accepted by a Tier I employee, or a Tier I retiree returning to | 12 | | active service, who has made an election under paragraph (2) of | 13 | | subsection (a) or (a-5) of Section Section 2-110.3. | 14 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
| 15 | | (40 ILCS 5/2-110.3 new) | 16 | | Sec. 2-110.3. Election by Tier I employees and Tier I | 17 | | retirees. | 18 | | (a) Each Tier I employee shall make an irrevocable election | 19 | | either: | 20 | | (1) to agree to the following: | 21 | | (i) to have the amount of the automatic annual | 22 | | increases in his or her retirement annuity that are | 23 | | otherwise provided for in this Article calculated, | 24 | | instead, as provided in subsection (a-1) of Section | 25 | | 2-119.1; and |
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| 1 | | (ii) to have his or her eligibility for automatic | 2 | | annual increases in retirement annuity postponed as | 3 | | provided in subsection (a-2) of Section 2-119.1 and to | 4 | | relinquish the additional increases provided in | 5 | | subsection (b) of Section 2-119.1; or | 6 | | (2) to not agree to items (i) and (ii) as set forth in | 7 | | paragraph (1) of this subsection. | 8 | | The election required under this subsection (a) shall be | 9 | | made by each Tier I employee no earlier than January 1, 2013 | 10 | | and no later than May 31, 2013, except that: | 11 | | (i) a person who becomes a Tier I employee under this | 12 | | Article after January 1, 2013 must make the election under | 13 | | this subsection (a) within 60 days after becoming a Tier I | 14 | | employee; | 15 | | (ii) a person who returns to active service as a Tier I | 16 | | employee under this Article after January 1, 2013 and has | 17 | | not yet made an election under this Section must make the | 18 | | election under this subsection (a) within 60 days after | 19 | | returning to active service as a Tier I employee; and | 20 | | (iii) a person who made the election under subsection | 21 | | (a-5) as a Tier I retiree remains bound by that election | 22 | | and shall not make a later election under this subsection | 23 | | (a). | 24 | | If a Tier I employee fails for any reason to make a | 25 | | required election under this subsection within the time | 26 | | specified, then the employee shall be deemed to have made the |
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| 1 | | election under paragraph (2) of this subsection. | 2 | | (a-5) Each Tier I retiree shall make an irrevocable | 3 | | election either: | 4 | | (1) to agree to the following: | 5 | | (i) to have the amount of the automatic annual | 6 | | increases in his or her retirement annuity that are | 7 | | otherwise provided for in this Article calculated, | 8 | | instead, as provided in subsection (a-1) of Section | 9 | | 2-119.1; and | 10 | | (ii) to have his or her eligibility for automatic | 11 | | annual increases in retirement annuity postponed as | 12 | | provided in subsection (a-2) of Section 2-119.1 and to | 13 | | relinquish the additional increases provided in | 14 | | subsection (b) of Section 2-119.1; or | 15 | | (2) to not agree to items (i) and (ii) as set forth in | 16 | | paragraph (1) of this subsection. | 17 | | The election required under this subsection (a-5) shall be | 18 | | made by each Tier I retiree no earlier than January 1, 2013 and | 19 | | no later than May 31, 2013, except that: | 20 | | (i) a person who becomes a Tier I retiree under this | 21 | | Article on or after January 1, 2013 must make the election | 22 | | under this subsection (a-5) within 60 days after becoming a | 23 | | Tier I retiree; and | 24 | | (ii) a person who made the election under subsection | 25 | | (a) as a Tier I employee remains bound by that election and | 26 | | shall not make a later election under this subsection |
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| 1 | | (a-5). | 2 | | If a Tier I retiree fails for any reason to make a required | 3 | | election under this subsection within the time specified, then | 4 | | the Tier I retiree shall be deemed to have made the election | 5 | | under paragraph (2) of this subsection. | 6 | | (a-10) All elections under subsection (a) or (a-5) that are | 7 | | made or deemed to be made before June 1, 2013 shall take effect | 8 | | on July 1, 2013. Elections that are made or deemed to be made | 9 | | on or after June 1, 2013 shall take effect on the first day of | 10 | | the month following the month in which the election is made or | 11 | | deemed to be made. | 12 | | (b) As adequate and legal consideration provided under this | 13 | | amendatory Act of the 97th General Assembly for making the | 14 | | election under paragraph (1) of subsection (a) of this Section, | 15 | | any future increases in income offered for service as a member | 16 | | under this Article to a Tier I employee who has made the | 17 | | election under paragraph (1) of subsection (a) of this Section | 18 | | shall be offered expressly and irrevocably as constituting | 19 | | salary under Section 2-108. | 20 | | As adequate and legal consideration provided under this | 21 | | amendatory Act of the 97th General Assembly for making the | 22 | | election under paragraph (1) of subsection (a-5) of this | 23 | | Section, any future increases in income offered for service as | 24 | | a member under this Article to a Tier I retiree who returns to | 25 | | active service after having made the election under paragraph | 26 | | (1) of subsection (a-5) of this Section shall be offered |
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| 1 | | expressly and irrevocably as constituting salary under Section | 2 | | 2-108. | 3 | | (c) A Tier I employee who makes the election under | 4 | | paragraph (2) of subsection (a) of this Section shall not be | 5 | | subject to items (i) and (ii) set forth in paragraph (1) of | 6 | | subsection (a) of this Section. However, any future increases | 7 | | in income offered for service as a member under this Article to | 8 | | a Tier I employee who has made the election under paragraph (2) | 9 | | of subsection (a) of this Section shall be offered expressly | 10 | | and irrevocably as not constituting salary under Section 2-108, | 11 | | and the member may not accept any future increase in income | 12 | | that is offered in violation of this requirement. | 13 | | A Tier I retiree who makes the election under paragraph (2) | 14 | | of subsection (a-5) of this Section shall not be subject to | 15 | | items (i) and (ii) set forth in paragraph (1) of subsection | 16 | | (a-5) of this Section. However, any future increases in income | 17 | | offered for service as a member under this Article to a Tier I | 18 | | retiree who returns to active service and has made the election | 19 | | under paragraph (2) of subsection (a-5) of this Section shall | 20 | | be offered expressly and irrevocably as not constituting salary | 21 | | under Section 2-108, and the member may not accept any future | 22 | | increase in income that is offered in violation of this | 23 | | requirement. | 24 | | (d) The System shall make a good faith effort to contact | 25 | | each Tier I employee and Tier I retiree subject to this | 26 | | Section. The System shall mail information describing the |
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| 1 | | required election to each Tier I employee and Tier I retiree by | 2 | | United States Postal Service mail to his or her last known | 3 | | address on file with the System. If the Tier I employee or Tier | 4 | | I retiree is not responsive to other means of contact, it is | 5 | | sufficient for the System to publish the details of any | 6 | | required elections on its website or to publish those details | 7 | | in a regularly published newsletter or other existing public | 8 | | forum. | 9 | | Tier I employees and Tier I retirees who are subject to | 10 | | this Section shall be provided with an election packet | 11 | | containing information regarding their options, as well as the | 12 | | forms necessary to make the required election. Upon request, | 13 | | the System shall offer Tier I employees and Tier I retirees an | 14 | | opportunity to receive information from the System before | 15 | | making the required election. The information may be provided | 16 | | through video materials, group presentations, individual | 17 | | consultation with a member or authorized representative of the | 18 | | System in person or by telephone or other electronic means, or | 19 | | any combination of those methods. The System shall not provide | 20 | | advice or counseling with respect to which election a Tier I | 21 | | employee or Tier I retiree should make or specific to the legal | 22 | | or tax circumstances of or consequences to the Tier I employee | 23 | | or Tier I retiree. | 24 | | The System shall inform Tier I employees and Tier I | 25 | | retirees in the election packet required under this subsection | 26 | | that the Tier I employee or Tier I retiree may also wish to |
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| 1 | | obtain information and counsel relating to the election | 2 | | required under this Section from any other available source, | 3 | | including but not limited to labor organizations and private | 4 | | counsel. | 5 | | The System shall coordinate with the Illinois Department of | 6 | | Central Management Services and each other retirement system | 7 | | administering an election in accordance with this amendatory | 8 | | Act of the 97th General Assembly to provide information | 9 | | concerning the impact of the election under this Section. | 10 | | In no event shall the System, its staff, or the Board be | 11 | | held liable for any information given to a member, beneficiary, | 12 | | or annuitant regarding the elections under this Section. | 13 | | (e) Notwithstanding any other provision of law, any future | 14 | | increases in income offered for service as a member must be | 15 | | offered expressly and irrevocably as not constituting "salary" | 16 | | under Section 2-108 to any Tier I employee, or Tier I retiree | 17 | | returning to active service, who has made an election under | 18 | | paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A | 19 | | Tier I employee, or Tier I retiree returning to active service, | 20 | | who has made an election under paragraph (2) or subsection (a) | 21 | | or (a-5) of Section 2-110.3 shall not accept any future | 22 | | increase in income that is offered for service as a member | 23 | | under this Article in violation of the requirement set forth in | 24 | | this subsection. | 25 | | (f) A member's election under this Section is not a | 26 | | prohibited election under subdivision (j)(1) of Section 1-119 |
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| 1 | | of this Code. | 2 | | (g) No provision of this Section shall be interpreted in a | 3 | | way that would cause the System to cease to be a qualified plan | 4 | | under section 461 (a) of the Internal Revenue Code of 1986.
| 5 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| 6 | | Sec. 2-119.1. Automatic increase in retirement annuity.
| 7 | | (a) Except as provided in subsections (a-1) and (a-2), a A | 8 | | participant who retires after June 30, 1967, and who has not
| 9 | | received an initial increase under this Section before the | 10 | | effective date
of this amendatory Act of 1991, shall, in | 11 | | January or July next following
the first anniversary of | 12 | | retirement, whichever occurs first, and in the same
month of | 13 | | each year thereafter, but in no event prior to age 60, have the | 14 | | amount
of the originally granted retirement annuity increased | 15 | | as follows: for each
year through 1971, 1 1/2%; for each year | 16 | | from 1972 through 1979, 2%; and for
1980 and each year | 17 | | thereafter, 3%. Annuitants who have received an initial
| 18 | | increase under this subsection prior to the effective date of | 19 | | this amendatory
Act of 1991 shall continue to receive their | 20 | | annual increases in the same month
as the initial increase.
| 21 | | (a-1) Notwithstanding any other provision of this Article, | 22 | | for a Tier I employee or Tier I retiree who made the election | 23 | | under paragraph (1) of subsection (a) or (a-5) of Section | 24 | | 2-110.3, the amount of each automatic annual increase in | 25 | | retirement annuity occurring on or after the effective date of |
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| 1 | | that election shall be 3% or one-half of the annual unadjusted | 2 | | percentage increase, if any, in the Consumer Price Index-U for | 3 | | the 12 months ending with the preceding September, whichever is | 4 | | less, of the originally granted retirement annuity. For the | 5 | | purposes of this Section, "Consumer Price Index-U" means
the | 6 | | index published by the Bureau of Labor Statistics of the United | 7 | | States
Department of Labor that measures the average change in | 8 | | prices of goods and
services purchased by all urban consumers, | 9 | | United States city average, all
items, 1982-84 = 100. | 10 | | (a-2) For a Tier I employee or Tier I retiree who made the | 11 | | election under paragraph (1) of subsection (a) or (a-5) of | 12 | | Section 2-110.3, the monthly retirement annuity shall first be | 13 | | subject to annual increases on the January 1 occurring on or | 14 | | next after the attainment of age 67 or the January 1 occurring | 15 | | on or next after the fifth anniversary of the annuity start | 16 | | date, whichever occurs earlier. If on the effective date of the | 17 | | election under paragraph (1) of subsection (a-5) of Section | 18 | | 2-110.3 a Tier I retiree has already received an annual | 19 | | increase under this Section but does not yet meet the new | 20 | | eligibility requirements of this subsection, the annual | 21 | | increases already received shall continue in force, but no | 22 | | additional annual increase shall be granted until the Tier I | 23 | | retiree meets the new eligibility requirements. | 24 | | (b) Beginning January 1, 1990, for eligible participants | 25 | | who remain
in service after attaining 20 years of creditable | 26 | | service, the 3% increases
provided under subsection (a) shall |
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| 1 | | begin to accrue on the January 1 next
following the date upon | 2 | | which the participant (1) attains age 55, or (2)
attains 20 | 3 | | years of creditable service, whichever occurs later, and shall
| 4 | | continue to accrue while the participant remains in service; | 5 | | such increases
shall become payable on January 1 or July 1, | 6 | | whichever occurs first, next
following the first anniversary of | 7 | | retirement. For any person who has service
credit in the System | 8 | | for the entire period from January 15, 1969 through
December | 9 | | 31, 1992, regardless of the date of termination of service, the
| 10 | | reference to age 55 in clause (1) of this subsection (b) shall | 11 | | be deemed to
mean age 50.
| 12 | | This subsection (b) does not apply to any person who first | 13 | | becomes a
member of the System after August 8, 2003 ( the | 14 | | effective date of Public Act 93-494) or (ii) has made the | 15 | | election under paragraph (1) of subsection (a) or (a-5) of | 16 | | Section 2-110.3; except that if on the effective date of the | 17 | | election under paragraph (1) of subsection (a-5) of Section | 18 | | 2-110.3 a Tier I retiree has already received a retirement | 19 | | annuity based on any annual increases under this subsection, | 20 | | those annual increases under this subsection shall continue in | 21 | | force this amendatory Act of
the 93rd General Assembly .
| 22 | | (b-5) Notwithstanding any other provision of this Article, | 23 | | a participant who first becomes a participant on or after | 24 | | January 1, 2011 (the effective date of Public Act 96-889) | 25 | | shall, in January or July next following the first anniversary | 26 | | of retirement, whichever occurs first, and in the same month of |
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| 1 | | each year thereafter, but in no event prior to age 67, have the | 2 | | amount of the retirement annuity then being paid increased by | 3 | | 3% or the annual unadjusted percentage increase in the Consumer | 4 | | Price Index for All Urban Consumers as determined by the Public | 5 | | Pension Division of the Department of Insurance under | 6 | | subsection (a) of Section 2-108.1, whichever is less. | 7 | | (c) The foregoing provisions relating to automatic | 8 | | increases are not
applicable to a participant who retires | 9 | | before having made contributions
(at the rate prescribed in | 10 | | Section 2-126) for automatic increases for less
than the | 11 | | equivalent of one full year. However, in order to be eligible | 12 | | for
the automatic increases, such a participant may make | 13 | | arrangements to pay
to the system the amount required to bring | 14 | | the total contributions for the
automatic increase to the | 15 | | equivalent of one year's contributions based upon
his or her | 16 | | last salary.
| 17 | | (d) A participant who terminated service prior to July 1, | 18 | | 1967, with at
least 14 years of service is entitled to an | 19 | | increase in retirement annuity
beginning January, 1976, and to | 20 | | additional increases in January of each
year thereafter.
| 21 | | The initial increase shall be 1 1/2% of the originally | 22 | | granted retirement
annuity multiplied by the number of full | 23 | | years that the annuitant was in
receipt of such annuity prior | 24 | | to January 1, 1972, plus 2% of the originally
granted | 25 | | retirement annuity for each year after that date. The | 26 | | subsequent
annual increases shall be at the rate of 2% of the |
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| 1 | | originally granted
retirement annuity for each year through | 2 | | 1979 and at the rate of 3% for
1980 and thereafter.
| 3 | | (e) Beginning January 1, 1990, all automatic annual | 4 | | increases payable
under this Section shall be calculated as a | 5 | | percentage of the total annuity
payable at the time of the | 6 | | increase, including previous increases granted
under this | 7 | | Article.
| 8 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 9 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 10 | | Sec. 2-124. Contributions by State.
| 11 | | (a) Except as otherwise provided in this Section, the The | 12 | | State shall make contributions to the System by
appropriations | 13 | | of amounts which, together with the contributions of
| 14 | | participants, interest earned on investments, and other income
| 15 | | will meet the cost of maintaining and administering the System | 16 | | on a 90%
funded basis in accordance with actuarial | 17 | | recommendations.
| 18 | | (b) The Board shall determine the amount of State
| 19 | | contributions required for each fiscal year on the basis of the
| 20 | | actuarial tables and other assumptions adopted by the Board and | 21 | | the
prescribed rate of interest, using the formula in | 22 | | subsection (c).
| 23 | | (c) Except as otherwise provided in this Section, for For | 24 | | State fiscal years 2012 through 2045, the minimum contribution
| 25 | | to the System to be made by the State for each fiscal year |
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| 1 | | shall be an amount
determined by the System to be sufficient to | 2 | | bring the total assets of the
System up to 90% of the total | 3 | | actuarial liabilities of the System by the end of
State fiscal | 4 | | year 2045. In making these determinations, the required State
| 5 | | contribution shall be calculated each year as a level | 6 | | percentage of payroll
over the years remaining to and including | 7 | | fiscal year 2045 and shall be
determined under the projected | 8 | | unit credit actuarial cost method.
| 9 | | For State fiscal years 1996 through 2005, the State | 10 | | contribution to
the System, as a percentage of the applicable | 11 | | employee payroll, shall be
increased in equal annual increments | 12 | | so that by State fiscal year 2011, the
State is contributing at | 13 | | the rate required under this Section.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State
contribution for State fiscal year 2006 is | 16 | | $4,157,000.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State
contribution for State fiscal year 2007 is | 19 | | $5,220,300.
| 20 | | For each of State fiscal years 2008 through 2009, the State | 21 | | contribution to
the System, as a percentage of the applicable | 22 | | employee payroll, shall be
increased in equal annual increments | 23 | | from the required State contribution for State fiscal year | 24 | | 2007, so that by State fiscal year 2011, the
State is | 25 | | contributing at the rate otherwise required under this Section.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State contribution for State fiscal year 2010 is | 2 | | $10,454,000 and shall be made from the proceeds of bonds sold | 3 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 4 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 5 | | expenses determined by the System's share of total bond | 6 | | proceeds, (ii) any amounts received from the General Revenue | 7 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 8 | | proceeds due to the issuance of discounted bonds, if | 9 | | applicable. | 10 | | Notwithstanding any other provision of this Article, the
| 11 | | total required State contribution for State fiscal year 2011 is
| 12 | | the amount recertified by the System on or before April 1, 2011 | 13 | | pursuant to Section 2-134 and shall be made from the proceeds | 14 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 15 | | the General
Obligation Bond Act, less (i) the pro rata share of | 16 | | bond sale
expenses determined by the System's share of total | 17 | | bond
proceeds, (ii) any amounts received from the General | 18 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 19 | | bond
proceeds due to the issuance of discounted bonds, if
| 20 | | applicable. | 21 | | Except as otherwise provided in this Section, beginning | 22 | | Beginning in State fiscal year 2046, the minimum State | 23 | | contribution for
each fiscal year shall be the amount needed to | 24 | | maintain the total assets of
the System at 90% of the total | 25 | | actuarial liabilities of the System.
| 26 | | Amounts received by the System pursuant to Section 25 of |
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| 1 | | the Budget Stabilization Act or Section 8.12 of the State | 2 | | Finance Act in any fiscal year do not reduce and do not | 3 | | constitute payment of any portion of the minimum State | 4 | | contribution required under this Article in that fiscal year. | 5 | | Such amounts shall not reduce, and shall not be included in the | 6 | | calculation of, the required State contributions under this | 7 | | Article in any future year until the System has reached a | 8 | | funding ratio of at least 90%. A reference in this Article to | 9 | | the "required State contribution" or any substantially similar | 10 | | term does not include or apply to any amounts payable to the | 11 | | System under Section 25 of the Budget Stabilization Act.
| 12 | | Notwithstanding any other provision of this Section, the | 13 | | required State
contribution for State fiscal year 2005 and for | 14 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 15 | | under this Section and
certified under Section 2-134, shall not | 16 | | exceed an amount equal to (i) the
amount of the required State | 17 | | contribution that would have been calculated under
this Section | 18 | | for that fiscal year if the System had not received any | 19 | | payments
under subsection (d) of Section 7.2 of the General | 20 | | Obligation Bond Act, minus
(ii) the portion of the State's | 21 | | total debt service payments for that fiscal
year on the bonds | 22 | | issued in fiscal year 2003 for the purposes of that Section | 23 | | 7.2, as determined
and certified by the Comptroller, that is | 24 | | the same as the System's portion of
the total moneys | 25 | | distributed under subsection (d) of Section 7.2 of the General
| 26 | | Obligation Bond Act. In determining this maximum for State |
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| 1 | | fiscal years 2008 through 2010, however, the amount referred to | 2 | | in item (i) shall be increased, as a percentage of the | 3 | | applicable employee payroll, in equal increments calculated | 4 | | from the sum of the required State contribution for State | 5 | | fiscal year 2007 plus the applicable portion of the State's | 6 | | total debt service payments for fiscal year 2007 on the bonds | 7 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 8 | | the General
Obligation Bond Act, so that, by State fiscal year | 9 | | 2011, the
State is contributing at the rate otherwise required | 10 | | under this Section.
| 11 | | (c-1) If at least 50% of Tier I employees making an | 12 | | election under Section 2-110.3 before June 1, 2013 choose the | 13 | | option under paragraph (1) of subsection (a) of that Section, | 14 | | then: | 15 | | (1) In lieu of the State contributions required under | 16 | | subsection (c), for State fiscal years 2014 through 2043 | 17 | | the minimum contribution
to the System to be made by the | 18 | | State for each fiscal year shall be an amount
determined by | 19 | | the System to be equal to the sum of (1) the State's | 20 | | portion of the projected normal cost for that fiscal year, | 21 | | plus (2) an amount sufficient to bring the total assets of | 22 | | the
System up to 100% of the total actuarial liabilities of | 23 | | the System by the end of
State fiscal year 2043. In making | 24 | | these determinations, the required State
contribution | 25 | | shall be calculated each year as a level percentage of | 26 | | payroll
over the years remaining to and including fiscal |
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| 1 | | year 2043 and shall be
determined under the projected unit | 2 | | credit actuarial cost method. | 3 | | (2) Beginning in State fiscal year 2044, the minimum | 4 | | State contribution for each fiscal year shall be the amount | 5 | | needed to maintain the total assets of the System at 100% | 6 | | of the total actuarial liabilities of the System. | 7 | | (c-2) If less than 50% of Tier I employees making an | 8 | | election under Section 2-110.3 before June 1, 2013 choose the | 9 | | option under paragraph (1) of subsection (a) of that Section, | 10 | | then: | 11 | | (1) Instead of the annual required contribution | 12 | | otherwise specified in subsection (c-1) of this Section, | 13 | | the annual required contribution to the System to be made | 14 | | by the State shall be determined under subsection (c) of | 15 | | this Section. | 16 | | (2) As soon as possible after June 1, 2013, the Board | 17 | | shall recertify the annual required contribution by the | 18 | | State for State fiscal year 2014. | 19 | | (d) For purposes of determining the required State | 20 | | contribution to the System, the value of the System's assets | 21 | | shall be equal to the actuarial value of the System's assets, | 22 | | which shall be calculated as follows: | 23 | | As of June 30, 2008, the actuarial value of the System's | 24 | | assets shall be equal to the market value of the assets as of | 25 | | that date. In determining the actuarial value of the System's | 26 | | assets for fiscal years after June 30, 2008, any actuarial |
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| 1 | | gains or losses from investment return incurred in a fiscal | 2 | | year shall be recognized in equal annual amounts over the | 3 | | 5-year period following that fiscal year. | 4 | | (e) For purposes of determining the required State | 5 | | contribution to the system for a particular year, the actuarial | 6 | | value of assets shall be assumed to earn a rate of return equal | 7 | | to the system's actuarially assumed rate of return. | 8 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | 9 | | 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff. | 10 | | 3-18-11; revised 4-6-11.)
| 11 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 12 | | Sec. 2-134. To certify required State contributions and | 13 | | submit vouchers.
| 14 | | (a) The Board shall certify to the Governor on or before | 15 | | December 15 of each
year until December 15, 2011 the amount of | 16 | | the required State contribution to the System for the next
| 17 | | fiscal year and shall specifically identify the System's | 18 | | projected State normal cost for that fiscal year . The | 19 | | certification shall include a copy of the actuarial
| 20 | | recommendations upon which it is based and shall specifically | 21 | | identify the System's projected State normal cost for that | 22 | | fiscal year .
| 23 | | On or before November 1 of each year, beginning November 1, | 24 | | 2012, the Board shall submit to the State Actuary, the | 25 | | Governor, and the General Assembly a proposed certification of |
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| 1 | | the amount of the required State contribution to the System for | 2 | | the next fiscal year, along with all of the actuarial | 3 | | assumptions, calculations, and data upon which that proposed | 4 | | certification is based. On or before January 1 of each year | 5 | | beginning January 1, 2013, the State Actuary shall issue a | 6 | | preliminary report concerning the proposed certification and | 7 | | identifying, if necessary, recommended changes in actuarial | 8 | | assumptions that the Board must consider before finalizing its | 9 | | certification of the required State contributions. On or before | 10 | | January 15, 2013 and every January 15 thereafter, the Board | 11 | | shall certify to the Governor and the General Assembly the | 12 | | amount of the required State contribution for the next fiscal | 13 | | year. The Board's certification must note any deviations from | 14 | | the State Actuary's recommended changes, the reason or reasons | 15 | | for not following the State Actuary's recommended changes, and | 16 | | the fiscal impact of not following the State Actuary's | 17 | | recommended changes on the required State contribution. | 18 | | On or before May 1, 2004, the Board shall recalculate and | 19 | | recertify to
the Governor the amount of the required State | 20 | | contribution to the System for
State fiscal year 2005, taking | 21 | | into account the amounts appropriated to and
received by the | 22 | | System under subsection (d) of Section 7.2 of the General
| 23 | | Obligation Bond Act.
| 24 | | On or before July 1, 2005, the Board shall recalculate and | 25 | | recertify
to the Governor the amount of the required State
| 26 | | contribution to the System for State fiscal year 2006, taking |
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| 1 | | into account the changes in required State contributions made | 2 | | by this amendatory Act of the 94th General Assembly.
| 3 | | On or before April 1, 2011, the Board shall recalculate and | 4 | | recertify to the Governor the amount of the required State | 5 | | contribution to the System for State fiscal year 2011, applying | 6 | | the changes made by Public Act 96-889 to the System's assets | 7 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 8 | | was approved on that date. | 9 | | (b) Beginning in State fiscal year 1996, on or as soon as | 10 | | possible after the
15th day of each month the Board shall | 11 | | submit vouchers for payment of State
contributions to the | 12 | | System, in a total monthly amount of one-twelfth of the
| 13 | | required annual State contribution certified under subsection | 14 | | (a).
From the effective date of this amendatory Act
of the 93rd | 15 | | General Assembly through June 30, 2004, the Board shall not
| 16 | | submit vouchers for the remainder of fiscal year 2004 in excess | 17 | | of the
fiscal year 2004 certified contribution amount | 18 | | determined
under this Section after taking into consideration | 19 | | the transfer to the
System under subsection (d) of Section | 20 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 21 | | the State Comptroller and Treasurer by warrants drawn
on the | 22 | | funds appropriated to the System for that fiscal year. If in | 23 | | any month
the amount remaining unexpended from all other | 24 | | appropriations to the System for
the applicable fiscal year | 25 | | (including the appropriations to the System under
Section 8.12 | 26 | | of the State Finance Act and Section 1 of the State Pension |
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| 1 | | Funds
Continuing Appropriation Act) is less than the amount | 2 | | lawfully vouchered under
this Section, the difference shall be | 3 | | paid from the General Revenue Fund under
the continuing | 4 | | appropriation authority provided in Section 1.1 of the State
| 5 | | Pension Funds Continuing Appropriation Act.
| 6 | | (c) The full amount of any annual appropriation for the | 7 | | System for
State fiscal year 1995 shall be transferred and made | 8 | | available to the System
at the beginning of that fiscal year at | 9 | | the request of the Board.
Any excess funds remaining at the end | 10 | | of any fiscal year from appropriations
shall be retained by the | 11 | | System as a general reserve to meet the System's
accrued | 12 | | liabilities.
| 13 | | (Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11; | 14 | | 96-1511, eff. 1-27-11.)
| 15 | | Section 105. Inseverability. The provisions of Section | 16 | | 5 of this Act are mutually dependent and inseverable. If any of | 17 | | those provisions is held invalid other than as applied to a | 18 | | particular person or circumstance, then all of those provisions | 19 | | are invalid. | 20 | | Section 999. Effective date. This Act takes effect upon | 21 | | becoming law.".
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