Full Text of HB1166 98th General Assembly
HB1166ham004 98TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 3/1/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1166
| 2 | | AMENDMENT NO. ______. Amend House Bill 1166, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Budget Stabilization Act is amended by | 6 | | changing Sections 20 and 25 as follows: | 7 | | (30 ILCS 122/20) | 8 | | Sec. 20. Pension Stabilization Fund. | 9 | | (a) The Pension Stabilization Fund is hereby created as a | 10 | | special fund in the State treasury. Moneys in the fund shall be | 11 | | used for the sole purpose of making payments to the designated | 12 | | retirement systems as provided in Section 25.
| 13 | | (b) For each fiscal year when the General Assembly's
| 14 | | appropriations and transfers or diversions as required by law
| 15 | | from general funds do not exceed 99% of the
estimated general | 16 | | funds revenues pursuant to subsection (a)
of Section 10, the |
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| 1 | | Comptroller shall transfer from the
General Revenue Fund as | 2 | | provided by this Section a total
amount equal to 0.5% of the | 3 | | estimated general funds revenues
to the Pension Stabilization | 4 | | Fund. | 5 | | (c) For each fiscal year through Fiscal Year 2013 when the | 6 | | General Assembly's
appropriations and transfers or diversions | 7 | | as required by law
from general funds do not exceed 98% of the
| 8 | | estimated general funds revenues pursuant to subsection (b)
of | 9 | | Section 10, the Comptroller shall transfer from the
General | 10 | | Revenue Fund as provided by this Section a total
amount equal | 11 | | to 1.0% of the estimated general funds revenues
to the Pension | 12 | | Stabilization Fund. | 13 | | (c-5) In Fiscal Year 2016 and each fiscal year thereafter, | 14 | | the State Comptroller shall order transferred and the State | 15 | | Treasurer shall transfer the following amounts from the General | 16 | | Revenue Fund to the Pension Stabilization Fund: | 17 | | in Fiscal Year 2016, $441,429,372; | 18 | | in Fiscal Year 2017, $150,545,372; | 19 | | in Fiscal Year 2018, $179,267,872; | 20 | | in Fiscal Year 2019, $211,777,872; | 21 | | in Fiscal Year 2020, $1,123,333,372; | 22 | | in Fiscal Year 2021, $1,084,470,872; | 23 | | in Fiscal Year 2022, $1,048,083,372; | 24 | | in Fiscal Year 2023, $1,014,170,872; | 25 | | in Fiscal Year 2024, $957,733,372; | 26 | | in Fiscal Year 2025, $905,683,372; |
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| 1 | | in Fiscal Year 2026, $882,458,372; | 2 | | in Fiscal Year 2027, $861,783,372; | 3 | | in Fiscal Year 2028, $818,658,372; | 4 | | in Fiscal Year 2029, $779,358,372; | 5 | | in Fiscal Year 2030, $718,883,372; | 6 | | in Fiscal Year 2031, $663,508,372; | 7 | | in Fiscal Year 2032, $638,233,372; | 8 | | in Fiscal Year 2033, $641,783,372; | 9 | | in Fiscal Year 2034, $1,797,883,372; | 10 | | in Fiscal Year 2035, $1,797,883,372; | 11 | | in Fiscal Year 2036, $1,797,883,372; | 12 | | in Fiscal Year 2037, $1,797,883,372; | 13 | | in Fiscal Year 2038, $1,797,883,372; | 14 | | in Fiscal Year 2039, $1,797,883,372; | 15 | | in Fiscal Year 2040, $1,797,883,372; | 16 | | in Fiscal Year 2041, $1,797,883,372; | 17 | | in Fiscal Year 2042, $1,797,883,372; | 18 | | in Fiscal Year 2043, $1,797,883,372; | 19 | | in Fiscal Year 2044, $1,797,883,372; and | 20 | | in Fiscal Year 2045, $1,797,883,372. | 21 | | (c-10) The transfers made pursuant to subsection (c-5) of | 22 | | this Section shall continue until Fiscal Year 2045 or until | 23 | | each of the designated retirement systems, as defined in | 24 | | Section 25, has achieved a funding ratio of at least 100%, | 25 | | whichever occurs first. | 26 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
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| 1 | | to be transferred each fiscal year under this Section
into the | 2 | | Pension Stabilization Fund on the first day of each
month of | 3 | | that fiscal year or as soon thereafter as possible; except that | 4 | | the final transfer of the fiscal year shall be made as soon as | 5 | | practical after the August 31 following the end of the fiscal | 6 | | year. | 7 | | Until Fiscal Year 2014, before Before the final transfer | 8 | | for a fiscal year is made, the Comptroller shall reconcile the | 9 | | estimated general funds revenues used in calculating the other | 10 | | transfers under this Section for that fiscal year with the | 11 | | actual general funds revenues for that fiscal year. The
final | 12 | | transfer for the fiscal year shall be adjusted so that the
| 13 | | total amount transferred under this Section for that fiscal | 14 | | year is equal to the percentage specified in subsection
(b) or | 15 | | (c) of this Section, whichever is applicable, of the actual
| 16 | | general funds revenues for that fiscal year. The actual general | 17 | | funds revenues for the fiscal year shall be calculated in a | 18 | | manner consistent with subsection (c) of
Section 10 of this | 19 | | Act.
| 20 | | (Source: P.A. 94-839, eff. 6-6-06.) | 21 | | (30 ILCS 122/25)
| 22 | | Sec. 25. Transfers from the Pension Stabilization Fund. | 23 | | (a) As used in this Section, "designated retirement | 24 | | systems" means: | 25 | | (1) the State Employees' Retirement System of
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| 1 | | Illinois; | 2 | | (2) the Teachers' Retirement System of the State of
| 3 | | Illinois; | 4 | | (3) the State Universities Retirement System; | 5 | | (4) the Judges Retirement System of Illinois; and | 6 | | (5) the General Assembly Retirement System. | 7 | | (b) As soon as may be practical after any money is | 8 | | deposited into the Pension Stabilization Fund, the State | 9 | | Comptroller shall apportion the deposited amount among the | 10 | | designated retirement systems and the State Comptroller and | 11 | | State Treasurer shall pay the apportioned amounts to the | 12 | | designated retirement systems. The amount deposited shall be | 13 | | apportioned among the designated retirement systems in | 14 | | proportion to their respective certified State contributions | 15 | | for the State fiscal year in which the payment is made to those | 16 | | systems in the same proportion as their respective portions of | 17 | | the
total actuarial reserve deficiency of the designated | 18 | | retirement systems, as most
recently determined by the | 19 | | Governor's Office of Management and
Budget . Amounts received by | 20 | | a designated retirement system under this Section shall be used | 21 | | for funding the unfunded liabilities of the retirement system. | 22 | | Payments under this Section are authorized by the continuing | 23 | | appropriation under Section 1.7 of the State Pension Funds | 24 | | Continuing Appropriation Act. | 25 | | (c) At the request of the State Comptroller, the Governor's | 26 | | Office of Management and Budget shall
determine the individual |
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| 1 | | and total actuarial reserve deficiencies of the
designated | 2 | | retirement systems. For this purpose, the
Governor's Office of | 3 | | Management and Budget shall consider the
latest available audit | 4 | | and actuarial reports of each of the
retirement systems and the | 5 | | relevant reports and statistics of
the Public Pension Division | 6 | | of the Department of
Financial and Professional Regulation. | 7 | | (d) Payments to the designated retirement systems under | 8 | | this Section shall be in addition to, and not in lieu of, any | 9 | | State contributions required under Section 2-124, 14-131, | 10 | | 15-155, 16-158, or 18-131 of the Illinois Pension Code.
| 11 | | (Source: P.A. 94-839, eff. 6-6-06.) | 12 | | Section 15. The Illinois Pension Code is amended by | 13 | | changing Sections 1-103.3, 2-124, 2-125, 14-131, 14-132, | 14 | | 15-155, 15-156, and 16-158 and adding Section 16-158.2 as | 15 | | follows:
| 16 | | (40 ILCS 5/1-103.3)
| 17 | | Sec. 1-103.3. Application of 1994 amendment; funding | 18 | | standard.
| 19 | | (a) The provisions of Public Act 88-593 this amendatory Act | 20 | | of 1994 that change the method of
calculating, certifying, and | 21 | | paying the required State contributions to the
retirement | 22 | | systems established under Articles 2, 14, 15, 16, and 18 shall
| 23 | | first apply to the State contributions required for State | 24 | | fiscal year 1996.
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| 1 | | (b) (Blank) The General Assembly declares that a funding | 2 | | ratio (the ratio of a
retirement system's total assets to its | 3 | | total actuarial liabilities) of 90% is
an appropriate goal for | 4 | | State-funded retirement systems in Illinois, and it
finds that | 5 | | a funding ratio of 90% is now the generally-recognized norm
| 6 | | throughout the nation for public employee retirement systems | 7 | | that are
considered to be financially secure and funded in an | 8 | | appropriate and
responsible manner .
| 9 | | (c) Every 5 years, beginning in 1999, the Commission on | 10 | | Government Forecasting and Accountability, in consultation | 11 | | with the affected retirement systems and the
Governor's Office | 12 | | of Management and Budget (formerly
Bureau
of the Budget), shall | 13 | | consider and determine whether the funding goals 90% funding | 14 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | 15 | | continue subsection (b) continues to represent an appropriate | 16 | | funding goals goal for
those State-funded retirement systems in | 17 | | Illinois , and it shall report its findings
and recommendations | 18 | | on this subject to the Governor and the General Assembly.
| 19 | | (Source: P.A. 93-1067, eff. 1-15-05.)
| 20 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 21 | | Sec. 2-124. Contributions by State.
| 22 | | (a) The State shall make contributions to the System by
| 23 | | appropriations of amounts which, together with the | 24 | | contributions of
participants, interest earned on investments, | 25 | | and other income
will meet the cost of maintaining and |
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| 1 | | administering the System on a 100% 90%
funded basis in | 2 | | accordance with actuarial recommendations.
| 3 | | (b) The Board shall determine the amount of State
| 4 | | contributions required for each fiscal year on the basis of the
| 5 | | actuarial tables and other assumptions adopted by the Board and | 6 | | the
prescribed rate of interest, using the formula in | 7 | | subsection (c).
| 8 | | (c) For State fiscal years 2015 through 2045, the minimum | 9 | | contribution
to the System to be made by the State for each | 10 | | fiscal year shall be an amount
determined by the System to be | 11 | | sufficient to bring the total assets of the
System up to 100% | 12 | | of the total actuarial liabilities of the System by the end of
| 13 | | State fiscal year 2045. In making these determinations, the | 14 | | required State
contribution shall be calculated each year as a | 15 | | level percentage of payroll
over the years remaining to and | 16 | | including fiscal year 2045 and shall be
determined under the | 17 | | projected unit credit actuarial cost method. | 18 | | For State fiscal years 2012 through 2014 2045 , the minimum | 19 | | contribution
to the System to be made by the State for each | 20 | | fiscal year shall be an amount
determined by the System to be | 21 | | sufficient to bring the total assets of the
System up to 90% of | 22 | | the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2045. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a | 25 | | level percentage of payroll
over the years remaining to and | 26 | | including fiscal year 2045 and shall be
determined under the |
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| 1 | | projected unit credit actuarial cost method.
| 2 | | For State fiscal years 1996 through 2005, the State | 3 | | contribution to
the System, as a percentage of the applicable | 4 | | employee payroll, shall be
increased in equal annual increments | 5 | | so that by State fiscal year 2011, the
State is contributing at | 6 | | the rate required under this Section.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution for State fiscal year 2006 is | 9 | | $4,157,000.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution for State fiscal year 2007 is | 12 | | $5,220,300.
| 13 | | For each of State fiscal years 2008 through 2009, the State | 14 | | contribution to
the System, as a percentage of the applicable | 15 | | employee payroll, shall be
increased in equal annual increments | 16 | | from the required State contribution for State fiscal year | 17 | | 2007, so that by State fiscal year 2011, the
State is | 18 | | contributing at the rate otherwise required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State contribution for State fiscal year 2010 is | 21 | | $10,454,000 and shall be made from the proceeds of bonds sold | 22 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 23 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 24 | | expenses determined by the System's share of total bond | 25 | | proceeds, (ii) any amounts received from the General Revenue | 26 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
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| 1 | | proceeds due to the issuance of discounted bonds, if | 2 | | applicable. | 3 | | Notwithstanding any other provision of this Article, the
| 4 | | total required State contribution for State fiscal year 2011 is
| 5 | | the amount recertified by the System on or before April 1, 2011 | 6 | | pursuant to Section 2-134 and shall be made from the proceeds | 7 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 8 | | the General
Obligation Bond Act, less (i) the pro rata share of | 9 | | bond sale
expenses determined by the System's share of total | 10 | | bond
proceeds, (ii) any amounts received from the General | 11 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 12 | | bond
proceeds due to the issuance of discounted bonds, if
| 13 | | applicable. | 14 | | Beginning in State fiscal year 2046, the minimum State | 15 | | contribution for
each fiscal year shall be the amount needed to | 16 | | maintain the total assets of
the System at 100% 90% of the | 17 | | total actuarial liabilities of the System.
| 18 | | Amounts received by the System pursuant to Section 25 of | 19 | | the Budget Stabilization Act or Section 8.12 of the State | 20 | | Finance Act in any fiscal year do not reduce and do not | 21 | | constitute payment of any portion of the minimum State | 22 | | contribution required under this Article in that fiscal year. | 23 | | Such amounts shall not reduce, and shall not be included in the | 24 | | calculation of, the required State contributions under this | 25 | | Article in any future year until the System has reached a | 26 | | funding ratio of at least 80% 90% . A reference in this Article |
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| 1 | | to the "required State contribution" or any substantially | 2 | | similar term does not include or apply to any amounts payable | 3 | | to the System under Section 25 of the Budget Stabilization Act.
| 4 | | Notwithstanding any other provision of this Code or the | 5 | | Budget Stabilization Act, amounts transferred to the System | 6 | | pursuant to the Budget Stabilization Act after the effective | 7 | | date of this amendatory Act of the 98th General Assembly do not | 8 | | reduce and do not constitute payment of any portion of the | 9 | | required State contribution under this Article in that fiscal | 10 | | year. Such amounts shall not reduce, and shall not be included | 11 | | in the calculation of, the required State contributions under | 12 | | this Article in any future year until the System has received | 13 | | payment of contributions pursuant to the Budget Stabilization | 14 | | Act. | 15 | | Notwithstanding any other provision of this Section, the | 16 | | required State
contribution for State fiscal year 2005 and for | 17 | | fiscal year 2008 and each fiscal year thereafter through State | 18 | | fiscal year 2014 , as
calculated under this Section and
| 19 | | certified under Section 2-134, shall not exceed an amount equal | 20 | | to (i) the
amount of the required State contribution that would | 21 | | have been calculated under
this Section for that fiscal year if | 22 | | the System had not received any payments
under subsection (d) | 23 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | 24 | | the portion of the State's total debt service payments for that | 25 | | fiscal
year on the bonds issued in fiscal year 2003 for the | 26 | | purposes of that Section 7.2, as determined
and certified by |
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| 1 | | the Comptroller, that is the same as the System's portion of
| 2 | | the total moneys distributed under subsection (d) of Section | 3 | | 7.2 of the General
Obligation Bond Act. In determining this | 4 | | maximum for State fiscal years 2008 through 2010, however, the | 5 | | amount referred to in item (i) shall be increased, as a | 6 | | percentage of the applicable employee payroll, in equal | 7 | | increments calculated from the sum of the required State | 8 | | contribution for State fiscal year 2007 plus the applicable | 9 | | portion of the State's total debt service payments for fiscal | 10 | | year 2007 on the bonds issued in fiscal year 2003 for the | 11 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 12 | | that, by State fiscal year 2011, the
State is contributing at | 13 | | the rate otherwise required under this Section.
| 14 | | (d) 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 | | (e) 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. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 4 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 5 | | 7-13-12.)
| 6 | | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
| 7 | | Sec. 2-125. Obligations of State ; funding guarantee . | 8 | | (a) The payment of (1) the required State contributions, | 9 | | (2) all benefits
granted under this system and (3) all expenses | 10 | | of administration and
operation are obligations of the State to | 11 | | the extent specified in this
Article.
| 12 | | (b) All income, interest and dividends derived from | 13 | | deposits and investments
shall be credited to the account of | 14 | | the system in the State Treasury and
used to pay benefits under | 15 | | this Article.
| 16 | | (c) Pursuant to Article XIII, Section 5 of the 1970 | 17 | | Constitution of the State of Illinois, beginning on July 1, | 18 | | 2013, the State shall, as a retirement benefit to each | 19 | | participant and annuitant of the System be contractually | 20 | | obligated to the System (as a fiduciary and trustee of the | 21 | | participants and annuitants) to pay the annual required State | 22 | | contribution, as determined by the Board of the System using | 23 | | generally accepted actuarial principles, as is necessary to | 24 | | bring the total assets of the System up to 100% of the total | 25 | | actuarial liabilities of the System by the end of State fiscal |
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| 1 | | year 2045. As a further retirement benefit and contractual | 2 | | obligation, each fiscal year, the State shall pay to each | 3 | | designated retirement system the annual required State | 4 | | contribution certified by the Board for that fiscal year. | 5 | | Payments of the annual required State contribution for each | 6 | | fiscal year shall be made in equal monthly installments. | 7 | | Additionally, beginning in fiscal year 2014, State transfers to | 8 | | the Pension Stabilization Fund pursuant to Section 20 of the | 9 | | Budget Stabilization Act and payments to the System pursuant to | 10 | | Section 25 of the Budget Stabilization Act shall be further | 11 | | retirement benefits and contractual obligations. The transfers | 12 | | and payments prescribed in Sections 20 and 25 of the Budget | 13 | | Stabilization Act shall not be used by the retirement system | 14 | | when calculation any pension payment until the System has | 15 | | reached a funded level of 100%. This Section and the security | 16 | | it provides to participants and annuitants is intended to be, | 17 | | and is, a contractual right that is part of the pension | 18 | | benefits provided to the participants and annuitants. | 19 | | Notwithstanding anything to the contrary in the Court of Claims | 20 | | Act or any other law, a designated retirement system has the | 21 | | exclusive right to and shall bring a mandamus action in the | 22 | | Circuit Court of Sangamon County against the State to compel | 23 | | the State to make any installment of the annual required State | 24 | | contribution required by this Section, irrespective of other | 25 | | remedies that may be available to the System. Each member or | 26 | | annuitant of the System has the right to in any judicial |
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| 1 | | district in which the System maintains an office if the System | 2 | | fails to bring an action specified in this Section, | 3 | | irrespective of other remedies that may be available to the | 4 | | member or annuitant. In making these determinations, the | 5 | | required State contribution shall be calculated each year as a | 6 | | level percentage of payroll over the years remaining to and | 7 | | including fiscal year 2045 and shall be determined under the | 8 | | projected unit credit actuarial cost method. | 9 | | (Source: P.A. 83-1440.)
| 10 | | (40 ILCS 5/14-131)
| 11 | | Sec. 14-131. Contributions by State.
| 12 | | (a) The State shall make contributions to the System by | 13 | | appropriations of
amounts which, together with other employer | 14 | | contributions from trust, federal,
and other funds, employee | 15 | | contributions, investment income, and other income,
will be | 16 | | sufficient to meet the cost of maintaining and administering | 17 | | the System
on a 100% 90% funded basis in accordance with | 18 | | actuarial recommendations.
| 19 | | For the purposes of this Section and Section 14-135.08, | 20 | | references to State
contributions refer only to employer | 21 | | contributions and do not include employee
contributions that | 22 | | are picked up or otherwise paid by the State or a
department on | 23 | | behalf of the employee.
| 24 | | (b) The Board shall determine the total amount of State | 25 | | contributions
required for each fiscal year on the basis of the |
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| 1 | | actuarial tables and other
assumptions adopted by the Board, | 2 | | using the formula in subsection (e).
| 3 | | The Board shall also determine a State contribution rate | 4 | | for each fiscal
year, expressed as a percentage of payroll, | 5 | | based on the total required State
contribution for that fiscal | 6 | | year (less the amount received by the System from
| 7 | | appropriations under Section 8.12 of the State Finance Act and | 8 | | Section 1 of the
State Pension Funds Continuing Appropriation | 9 | | Act, if any, for the fiscal year
ending on the June 30 | 10 | | immediately preceding the applicable November 15
certification | 11 | | deadline), the estimated payroll (including all forms of
| 12 | | compensation) for personal services rendered by eligible | 13 | | employees, and the
recommendations of the actuary.
| 14 | | For the purposes of this Section and Section 14.1 of the | 15 | | State Finance Act,
the term "eligible employees" includes | 16 | | employees who participate in the System,
persons who may elect | 17 | | to participate in the System but have not so elected,
persons | 18 | | who are serving a qualifying period that is required for | 19 | | participation,
and annuitants employed by a department as | 20 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 21 | | (c) Contributions shall be made by the several departments | 22 | | for each pay
period by warrants drawn by the State Comptroller | 23 | | against their respective
funds or appropriations based upon | 24 | | vouchers stating the amount to be so
contributed. These amounts | 25 | | shall be based on the full rate certified by the
Board under | 26 | | Section 14-135.08 for that fiscal year.
From the effective date |
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| 1 | | of this amendatory Act of the 93rd General
Assembly through the | 2 | | payment of the final payroll from fiscal year 2004
| 3 | | appropriations, the several departments shall not make | 4 | | contributions
for the remainder of fiscal year 2004 but shall | 5 | | instead make payments
as required under subsection (a-1) of | 6 | | Section 14.1 of the State Finance Act.
The several departments | 7 | | shall resume those contributions at the commencement of
fiscal | 8 | | year 2005.
| 9 | | (c-1) Notwithstanding subsection (c) of this Section, for | 10 | | fiscal years 2010, 2012, and 2013 only, contributions by the | 11 | | several departments are not required to be made for General | 12 | | Revenue Funds payrolls processed by the Comptroller. Payrolls | 13 | | paid by the several departments from all other State funds must | 14 | | continue to be processed pursuant to subsection (c) of this | 15 | | Section. | 16 | | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | 17 | | or as soon as possible after the 15th day of each month, 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 | | fiscal year General Revenue Fund contribution as certified by | 21 | | the System pursuant to Section 14-135.08 of the Illinois | 22 | | Pension Code. | 23 | | (d) If an employee is paid from trust funds or federal | 24 | | funds, the
department or other employer shall pay employer | 25 | | contributions from those funds
to the System at the certified | 26 | | rate, unless the terms of the trust or the
federal-State |
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| 1 | | agreement preclude the use of the funds for that purpose, in
| 2 | | which case the required employer contributions shall be paid by | 3 | | the State.
From the effective date of this amendatory
Act of | 4 | | the 93rd General Assembly through the payment of the final
| 5 | | payroll from fiscal year 2004 appropriations, the department or | 6 | | other
employer shall not pay contributions for the remainder of | 7 | | fiscal year
2004 but shall instead make payments as required | 8 | | under subsection (a-1) of
Section 14.1 of the State Finance | 9 | | Act. The department or other employer shall
resume payment of
| 10 | | contributions at the commencement of fiscal year 2005.
| 11 | | (e) For State fiscal years 2015 through 2045, the minimum | 12 | | contribution
to the System to be made by the State for each | 13 | | fiscal year shall be an amount
determined by the System to be | 14 | | sufficient to bring the total assets of the
System up to 100% | 15 | | of the total actuarial liabilities of the System by the end of
| 16 | | State fiscal year 2045. In making these determinations, the | 17 | | required State
contribution shall be calculated each year as a | 18 | | level percentage of payroll
over the years remaining to and | 19 | | including fiscal year 2045 and shall be
determined under the | 20 | | projected unit credit actuarial cost method. | 21 | | For State fiscal years 2012 through 2014 2045 , the minimum | 22 | | contribution
to the System to be made by the State for each | 23 | | fiscal year shall be an amount
determined by the System to be | 24 | | sufficient to bring the total assets of the
System up to 90% of | 25 | | the total actuarial liabilities of the System by the end
of | 26 | | State fiscal year 2045. In making these determinations, the |
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| 1 | | required State
contribution shall be calculated each year as a | 2 | | level percentage of payroll
over the years remaining to and | 3 | | including fiscal year 2045 and shall be
determined under the | 4 | | projected unit credit actuarial cost method.
| 5 | | For State fiscal years 1996 through 2005, the State | 6 | | contribution to
the System, as a percentage of the applicable | 7 | | employee payroll, shall be
increased in equal annual increments | 8 | | so that by State fiscal year 2011, the
State is contributing at | 9 | | the rate required under this Section; except that
(i) for State | 10 | | fiscal year 1998, for all purposes of this Code and any other
| 11 | | law of this State, the certified percentage of the applicable | 12 | | employee payroll
shall be 5.052% for employees earning eligible | 13 | | creditable service under Section
14-110 and 6.500% for all | 14 | | other employees, notwithstanding any contrary
certification | 15 | | made under Section 14-135.08 before the effective date of this
| 16 | | amendatory Act of 1997, and (ii)
in the following specified | 17 | | State fiscal years, the State contribution to
the System shall | 18 | | not be less than the following indicated percentages of the
| 19 | | applicable employee payroll, even if the indicated percentage | 20 | | will produce a
State contribution in excess of the amount | 21 | | otherwise required under this
subsection and subsection (a):
| 22 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 23 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 24 | | Notwithstanding any other provision of this Article, the | 25 | | total required State
contribution to the System for State | 26 | | fiscal year 2006 is $203,783,900.
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| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution to the System for State | 3 | | fiscal year 2007 is $344,164,400.
| 4 | | For each of State fiscal years 2008 through 2009, the State | 5 | | contribution to
the System, as a percentage of the applicable | 6 | | employee payroll, shall be
increased in equal annual increments | 7 | | from the required State contribution for State fiscal year | 8 | | 2007, so that by State fiscal year 2011, the
State is | 9 | | contributing at the rate otherwise required under this Section.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State General Revenue Fund contribution for | 12 | | State fiscal year 2010 is $723,703,100 and shall be made from | 13 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 14 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 15 | | pro rata share of bond sale expenses determined by the System's | 16 | | share of total bond proceeds, (ii) any amounts received from | 17 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 18 | | reduction in bond proceeds due to the issuance of discounted | 19 | | bonds, if applicable. | 20 | | Notwithstanding any other provision of this Article, the
| 21 | | total required State General Revenue Fund contribution for
| 22 | | State fiscal year 2011 is the amount recertified by the System | 23 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 24 | | shall be made from
the proceeds of bonds sold in fiscal year | 25 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 26 | | Act, less (i) the
pro rata share of bond sale expenses |
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| 1 | | determined by the System's
share of total bond proceeds, (ii) | 2 | | any amounts received from
the General Revenue Fund in fiscal | 3 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 4 | | issuance of discounted
bonds, if applicable. | 5 | | Beginning in State fiscal year 2046, the minimum State | 6 | | contribution for
each fiscal year shall be the amount needed to | 7 | | maintain the total assets of
the System at 90% of the total | 8 | | actuarial liabilities of the System.
| 9 | | Amounts received by the System pursuant to Section 25 of | 10 | | the Budget Stabilization Act or Section 8.12 of the State | 11 | | Finance Act in any fiscal year do not reduce and do not | 12 | | constitute payment of any portion of the minimum State | 13 | | contribution required under this Article in that fiscal year. | 14 | | Such amounts shall not reduce, and shall not be included in the | 15 | | calculation of, the required State contributions under this | 16 | | Article in any future year until the System has reached a | 17 | | funding ratio of at least 100% 90% . A reference in this Article | 18 | | to the "required State contribution" or any substantially | 19 | | similar term does not include or apply to any amounts payable | 20 | | to the System under Section 25 of the Budget Stabilization Act.
| 21 | | Notwithstanding any other provision of this Code or the | 22 | | Budget Stabilization Act, amounts transferred to the System | 23 | | pursuant to the Budget Stabilization Act after the effective | 24 | | date of this amendatory Act of the 98th General Assembly do not | 25 | | reduce and do not constitute payment of any portion of the | 26 | | required State contribution under this Article in that fiscal |
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| 1 | | year. Such amounts shall not reduce, and shall not be included | 2 | | in the calculation of, the required State contributions under | 3 | | this Article in any future year until the System has received | 4 | | payment of contributions pursuant to the Budget Stabilization | 5 | | Act. | 6 | | Notwithstanding any other provision of this Section, the | 7 | | required State
contribution for State fiscal year 2005 and for | 8 | | fiscal year 2008 and each fiscal year thereafter through State | 9 | | fiscal year 2014 , as
calculated under this Section and
| 10 | | certified under Section 14-135.08, shall not exceed an amount | 11 | | equal to (i) the
amount of the required State contribution that | 12 | | would have been calculated under
this Section for that fiscal | 13 | | year if the System had not received any payments
under | 14 | | subsection (d) of Section 7.2 of the General Obligation Bond | 15 | | Act, minus
(ii) the portion of the State's total debt service | 16 | | payments for that fiscal
year on the bonds issued in fiscal | 17 | | year 2003 for the purposes of that Section 7.2, as determined
| 18 | | and certified by the Comptroller, that is the same as the | 19 | | System's portion of
the total moneys distributed under | 20 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 21 | | Act. In determining this maximum for State fiscal years 2008 | 22 | | through 2010, however, the amount referred to in item (i) shall | 23 | | be increased, as a percentage of the applicable employee | 24 | | payroll, in equal increments calculated from the sum of the | 25 | | required State contribution for State fiscal year 2007 plus the | 26 | | applicable portion of the State's total debt service payments |
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| 1 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 2 | | for the purposes of Section 7.2 of the General
Obligation Bond | 3 | | Act, so that, by State fiscal year 2011, the
State is | 4 | | contributing at the rate otherwise required under this Section.
| 5 | | (f) After the submission of all payments for eligible | 6 | | employees
from personal services line items in fiscal year 2004 | 7 | | have been made,
the Comptroller shall provide to the System a | 8 | | certification of the sum
of all fiscal year 2004 expenditures | 9 | | for personal services that would
have been covered by payments | 10 | | to the System under this Section if the
provisions of this | 11 | | amendatory Act of the 93rd General Assembly had not been
| 12 | | enacted. Upon
receipt of the certification, the System shall | 13 | | determine the amount
due to the System based on the full rate | 14 | | certified by the Board under
Section 14-135.08 for fiscal year | 15 | | 2004 in order to meet the State's
obligation under this | 16 | | Section. The System shall compare this amount
due to the amount | 17 | | received by the System in fiscal year 2004 through
payments | 18 | | under this Section and under Section 6z-61 of the State Finance | 19 | | Act.
If the amount
due is more than the amount received, the | 20 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 21 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 22 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 23 | | Continuing Appropriation Act. If the amount due is less than | 24 | | the
amount received, the
difference shall be termed the "Fiscal | 25 | | Year 2004 Overpayment" for purposes of
this Section, and the | 26 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
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| 1 | | the Pension Contribution Fund as soon as practicable
after the | 2 | | certification.
| 3 | | (g) For purposes of determining the required State | 4 | | contribution to the System, the value of the System's assets | 5 | | shall be equal to the actuarial value of the System's assets, | 6 | | which shall be calculated as follows: | 7 | | As of June 30, 2008, the actuarial value of the System's | 8 | | assets shall be equal to the market value of the assets as of | 9 | | that date. In determining the actuarial value of the System's | 10 | | assets for fiscal years after June 30, 2008, any actuarial | 11 | | gains or losses from investment return incurred in a fiscal | 12 | | year shall be recognized in equal annual amounts over the | 13 | | 5-year period following that fiscal year. | 14 | | (h) For purposes of determining the required State | 15 | | contribution to the System for a particular year, the actuarial | 16 | | value of assets shall be assumed to earn a rate of return equal | 17 | | to the System's actuarially assumed rate of return. | 18 | | (i) After the submission of all payments for eligible | 19 | | employees from personal services line items paid from the | 20 | | General Revenue Fund in fiscal year 2010 have been made, the | 21 | | Comptroller shall provide to the System a certification of the | 22 | | sum of all fiscal year 2010 expenditures for personal services | 23 | | that would have been covered by payments to the System under | 24 | | this Section if the provisions of this amendatory Act of the | 25 | | 96th General Assembly had not been enacted. Upon receipt of the | 26 | | certification, the System shall determine the amount due to the |
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| 1 | | System based on the full rate certified by the Board under | 2 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 3 | | State's obligation under this Section. The System shall compare | 4 | | this amount due to the amount received by the System in fiscal | 5 | | year 2010 through payments under this Section. If the amount | 6 | | due is more than the amount received, the difference shall be | 7 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 8 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 9 | | under Section 1.2 of the State Pension Funds Continuing | 10 | | Appropriation Act. If the amount due is less than the amount | 11 | | received, the difference shall be termed the "Fiscal Year 2010 | 12 | | Overpayment" for purposes of this Section, and the Fiscal Year | 13 | | 2010 Overpayment shall be repaid by the System to the General | 14 | | Revenue Fund as soon as practicable after the certification. | 15 | | (j) After the submission of all payments for eligible | 16 | | employees from personal services line items paid from the | 17 | | General Revenue Fund in fiscal year 2011 have been made, the | 18 | | Comptroller shall provide to the System a certification of the | 19 | | sum of all fiscal year 2011 expenditures for personal services | 20 | | that would have been covered by payments to the System under | 21 | | this Section if the provisions of this amendatory Act of the | 22 | | 96th General Assembly had not been enacted. Upon receipt of the | 23 | | certification, the System shall determine the amount due to the | 24 | | System based on the full rate certified by the Board under | 25 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 26 | | State's obligation under this Section. The System shall compare |
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| 1 | | this amount due to the amount received by the System in fiscal | 2 | | year 2011 through payments under this Section. If the amount | 3 | | due is more than the amount received, the difference shall be | 4 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 5 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 6 | | under Section 1.2 of the State Pension Funds Continuing | 7 | | Appropriation Act. If the amount due is less than the amount | 8 | | received, the difference shall be termed the "Fiscal Year 2011 | 9 | | Overpayment" for purposes of this Section, and the Fiscal Year | 10 | | 2011 Overpayment shall be repaid by the System to the General | 11 | | Revenue Fund as soon as practicable after the certification. | 12 | | (k) For fiscal years 2012 and 2013 only, after the | 13 | | submission of all payments for eligible employees from personal | 14 | | services line items paid from the General Revenue Fund in the | 15 | | fiscal year have been made, the Comptroller shall provide to | 16 | | the System a certification of the sum of all expenditures in | 17 | | the fiscal year for personal services. Upon receipt of the | 18 | | certification, the System shall determine the amount due to the | 19 | | System based on the full rate certified by the Board under | 20 | | Section 14-135.08 for the fiscal year in order to meet the | 21 | | State's obligation under this Section. The System shall compare | 22 | | this amount due to the amount received by the System for the | 23 | | fiscal year. If the amount due is more than the amount | 24 | | received, the difference shall be termed the "Prior Fiscal Year | 25 | | Shortfall" for purposes of this Section, and the Prior Fiscal | 26 | | Year Shortfall shall be satisfied under Section 1.2 of the |
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| 1 | | State Pension Funds Continuing Appropriation Act. If the amount | 2 | | due is less than the amount received, the difference shall be | 3 | | termed the "Prior Fiscal Year Overpayment" for purposes of this | 4 | | Section, and the Prior Fiscal Year Overpayment shall be repaid | 5 | | by the System to the General Revenue Fund as soon as | 6 | | practicable after the certification. | 7 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | 8 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | 9 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | 10 | | eff. 6-30-12.)
| 11 | | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| 12 | | Sec. 14-132. Obligations of State ; funding guarantee . | 13 | | (a) The payment of the required department
contributions, | 14 | | all allowances,
annuities, benefits granted under this | 15 | | Article, and all expenses of
administration of the system are | 16 | | obligations of the State of Illinois to
the extent specified in | 17 | | this Article.
| 18 | | (b) All income of the system
shall be credited to a | 19 | | separate account for this system in the State
treasury and | 20 | | shall be used to pay allowances, annuities, benefits and
| 21 | | administration expense.
| 22 | | (c) Pursuant to Article XIII, Section 5 of the 1970 | 23 | | Constitution of the State of Illinois, beginning on July 1, | 24 | | 2013, the State shall, as a retirement benefit to each | 25 | | participant and annuitant of the System be contractually |
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| 1 | | obligated to the System (as a fiduciary and trustee of the | 2 | | participants and annuitants) to pay the annual required State | 3 | | contribution, as determined by the Board of the System using | 4 | | generally accepted actuarial principles, as is necessary to | 5 | | bring the total assets of the System up to 100% of the total | 6 | | actuarial liabilities of the System by the end of State fiscal | 7 | | year 2045. As a further retirement benefit and contractual | 8 | | obligation, each fiscal year, the State shall pay to each | 9 | | designated retirement system the annual required State | 10 | | contribution certified by the Board for that fiscal year. | 11 | | Payments of the annual required State contribution for each | 12 | | fiscal year shall be made in equal monthly installments. | 13 | | Additionally, beginning in fiscal year 2014, State transfers to | 14 | | the Pension Stabilization Fund pursuant to Section 20 of the | 15 | | Budget Stabilization Act and payments to the System pursuant to | 16 | | Section 25 of the Budget Stabilization Act shall be further | 17 | | retirement benefits and contractual obligations. The transfers | 18 | | and payments prescribed in Sections 20 and 25 of the Budget | 19 | | Stabilization Act shall not be used by the retirement system | 20 | | when calculation any pension payment until the System has | 21 | | reached a funded level of 100%. This Section and the security | 22 | | it provides to participants and annuitants is intended to be, | 23 | | and is, a contractual right that is part of the pension | 24 | | benefits provided to the participants and annuitants. | 25 | | Notwithstanding anything to the contrary in the Court of Claims | 26 | | Act or any other law, a designated retirement system has the |
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| 1 | | exclusive right to and shall bring a mandamus action in the | 2 | | Circuit Court of Sangamon County against the State to compel | 3 | | the State to make any installment of the annual required State | 4 | | contribution required by this Section, irrespective of other | 5 | | remedies that may be available to the System. Each member or | 6 | | annuitant of the System has the right to in any judicial | 7 | | district in which the System maintains an office if the System | 8 | | fails to bring an action specified in this Section, | 9 | | irrespective of other remedies that may be available to the | 10 | | member or annuitant. In making these determinations, the | 11 | | required State contribution shall be calculated each year as a | 12 | | level percentage of payroll over the years remaining to and | 13 | | including fiscal year 2045 and shall be determined under the | 14 | | projected unit credit actuarial cost method. | 15 | | (Source: P.A. 80-841.)
| 16 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 17 | | Sec. 15-155. Employer contributions.
| 18 | | (a) The State of Illinois shall make contributions by | 19 | | appropriations of
amounts which, together with the other | 20 | | employer contributions from trust,
federal, and other funds, | 21 | | employee contributions, income from investments,
and other | 22 | | income of this System, will be sufficient to meet the cost of
| 23 | | maintaining and administering the System on a 100% 90% funded | 24 | | basis in accordance
with actuarial recommendations.
| 25 | | The Board shall determine the amount of State contributions |
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| 1 | | required for
each fiscal year on the basis of the actuarial | 2 | | tables and other assumptions
adopted by the Board and the | 3 | | recommendations of the actuary, using the formula
in subsection | 4 | | (a-1).
| 5 | | (a-1) For State fiscal years 2015 through 2045, the minimum | 6 | | contribution
to the System to be made by the State for each | 7 | | fiscal year shall be an amount
determined by the System to be | 8 | | sufficient to bring the total assets of the
System up to 100% | 9 | | of the total actuarial liabilities of the System by the end of
| 10 | | State fiscal year 2045. In making these determinations, the | 11 | | required State
contribution shall be calculated each year as a | 12 | | level percentage of payroll
over the years remaining to and | 13 | | including fiscal year 2045 and shall be
determined under the | 14 | | projected unit credit actuarial cost method. | 15 | | For State fiscal years 2012 through 2014 2045 , the minimum | 16 | | contribution
to the System to be made by the State for each | 17 | | fiscal year shall be an amount
determined by the System to be | 18 | | sufficient to bring the total assets of the
System up to 90% of | 19 | | the total actuarial liabilities of the System by the end of
| 20 | | State fiscal year 2045. In making these determinations, the | 21 | | required State
contribution shall be calculated each year as a | 22 | | level percentage of payroll
over the years remaining to and | 23 | | including fiscal year 2045 and shall be
determined under the | 24 | | projected unit credit actuarial cost method.
| 25 | | For State fiscal years 1996 through 2005, the State | 26 | | contribution to
the System, as a percentage of the applicable |
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| 1 | | employee payroll, shall be
increased in equal annual increments | 2 | | so that by State fiscal year 2011, the
State is contributing at | 3 | | the rate required under this Section.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2006 is | 6 | | $166,641,900.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution for State fiscal year 2007 is | 9 | | $252,064,100.
| 10 | | For each of State fiscal years 2008 through 2009, the State | 11 | | contribution to
the System, as a percentage of the applicable | 12 | | employee payroll, shall be
increased in equal annual increments | 13 | | from the required State contribution for State fiscal year | 14 | | 2007, so that by State fiscal year 2011, the
State is | 15 | | contributing at the rate otherwise required under this Section.
| 16 | | Notwithstanding any other provision of this Article, the | 17 | | total required State contribution for State fiscal year 2010 is | 18 | | $702,514,000 and shall be made from the State Pensions Fund and | 19 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 20 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 21 | | share of bond sale expenses determined by the System's share of | 22 | | total bond proceeds, (ii) any amounts received from the General | 23 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 24 | | proceeds due to the issuance of discounted bonds, if | 25 | | applicable. | 26 | | Notwithstanding any other provision of this Article, the
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| 1 | | total required State contribution for State fiscal year 2011 is
| 2 | | the amount recertified by the System on or before April 1, 2011 | 3 | | pursuant to Section 15-165 and shall be made from the State | 4 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 5 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 6 | | less (i) the pro rata
share of bond sale expenses determined by | 7 | | the System's share of
total bond proceeds, (ii) any amounts | 8 | | received from the General
Revenue Fund in fiscal year 2011, and | 9 | | (iii) any reduction in bond
proceeds due to the issuance of | 10 | | discounted bonds, if
applicable. | 11 | | Beginning in State fiscal year 2046, the minimum State | 12 | | contribution for
each fiscal year shall be the amount needed to | 13 | | maintain the total assets of
the System at 90% of the total | 14 | | actuarial liabilities of the System.
| 15 | | Amounts received by the System pursuant to Section 25 of | 16 | | the Budget Stabilization Act or Section 8.12 of the State | 17 | | Finance Act in any fiscal year do not reduce and do not | 18 | | constitute payment of any portion of the minimum State | 19 | | contribution required under this Article in that fiscal year. | 20 | | Such amounts shall not reduce, and shall not be included in the | 21 | | calculation of, the required State contributions under this | 22 | | Article in any future year until the System has reached a | 23 | | funding ratio of at least 100% 90% . A reference in this Article | 24 | | to the "required State contribution" or any substantially | 25 | | similar term does not include or apply to any amounts payable | 26 | | to the System under Section 25 of the Budget Stabilization Act. |
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| 1 | | Notwithstanding any other provision of this Code or the | 2 | | Budget Stabilization Act, amounts transferred to the System | 3 | | pursuant to the Budget Stabilization Act after the effective | 4 | | date of this amendatory Act of the 98th General Assembly do not | 5 | | reduce and do not constitute payment of any portion of the | 6 | | required State contribution under this Article in that fiscal | 7 | | year. Such amounts shall not reduce, and shall not be included | 8 | | in the calculation of, the required State contributions under | 9 | | this Article in any future year until the System has received | 10 | | payment of contributions pursuant to the Budget Stabilization | 11 | | 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 through State | 15 | | fiscal year 2014 , as
calculated under this Section and
| 16 | | certified under Section 15-165, shall not exceed an amount | 17 | | equal to (i) the
amount of the required State contribution that | 18 | | would have been calculated under
this Section for that fiscal | 19 | | year if the System had not received any payments
under | 20 | | subsection (d) of Section 7.2 of the General Obligation Bond | 21 | | Act, minus
(ii) the portion of the State's total debt service | 22 | | payments for that fiscal
year on the bonds issued in fiscal | 23 | | year 2003 for the purposes of that Section 7.2, as determined
| 24 | | and certified by the Comptroller, that is the same as the | 25 | | System's portion of
the total moneys distributed under | 26 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
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| 1 | | Act. In determining this maximum for State fiscal years 2008 | 2 | | through 2010, however, the amount referred to in item (i) shall | 3 | | be increased, as a percentage of the applicable employee | 4 | | payroll, in equal increments calculated from the sum of the | 5 | | required State contribution for State fiscal year 2007 plus the | 6 | | applicable portion of the State's total debt service payments | 7 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 8 | | for the purposes of Section 7.2 of the General
Obligation Bond | 9 | | Act, so that, by State fiscal year 2011, the
State is | 10 | | contributing at the rate otherwise required under this Section.
| 11 | | (b) If an employee is paid from trust or federal funds, the | 12 | | employer
shall pay to the Board contributions from those funds | 13 | | which are
sufficient to cover the accruing normal costs on | 14 | | behalf of the employee.
However, universities having employees | 15 | | who are compensated out of local
auxiliary funds, income funds, | 16 | | or service enterprise funds are not required
to pay such | 17 | | contributions on behalf of those employees. The local auxiliary
| 18 | | funds, income funds, and service enterprise funds of | 19 | | universities shall not be
considered trust funds for the | 20 | | purpose of this Article, but funds of alumni
associations, | 21 | | foundations, and athletic associations which are affiliated | 22 | | with
the universities included as employers under this Article | 23 | | and other employers
which do not receive State appropriations | 24 | | are considered to be trust funds for
the purpose of this | 25 | | Article.
| 26 | | (b-1) The City of Urbana and the City of Champaign shall |
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| 1 | | each make
employer contributions to this System for their | 2 | | respective firefighter
employees who participate in this | 3 | | System pursuant to subsection (h) of Section
15-107. The rate | 4 | | of contributions to be made by those municipalities shall
be | 5 | | determined annually by the Board on the basis of the actuarial | 6 | | assumptions
adopted by the Board and the recommendations of the | 7 | | actuary, and shall be
expressed as a percentage of salary for | 8 | | each such employee. The Board shall
certify the rate to the | 9 | | affected municipalities as soon as may be practical.
The | 10 | | employer contributions required under this subsection shall be | 11 | | remitted by
the municipality to the System at the same time and | 12 | | in the same manner as
employee contributions.
| 13 | | (c) Through State fiscal year 1995: The total employer | 14 | | contribution shall
be apportioned among the various funds of | 15 | | the State and other employers,
whether trust, federal, or other | 16 | | funds, in accordance with actuarial procedures
approved by the | 17 | | Board. State of Illinois contributions for employers receiving
| 18 | | State appropriations for personal services shall be payable | 19 | | from appropriations
made to the employers or to the System. The | 20 | | contributions for Class I
community colleges covering earnings | 21 | | other than those paid from trust and
federal funds, shall be | 22 | | payable solely from appropriations to the Illinois
Community | 23 | | College Board or the System for employer contributions.
| 24 | | (d) Beginning in State fiscal year 1996, the required State | 25 | | contributions
to the System shall be appropriated directly to | 26 | | the System and shall be payable
through vouchers issued in |
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| 1 | | accordance with subsection (c) of Section 15-165, except as | 2 | | provided in subsection (g).
| 3 | | (e) The State Comptroller shall draw warrants payable to | 4 | | the System upon
proper certification by the System or by the | 5 | | employer in accordance with the
appropriation laws and this | 6 | | Code.
| 7 | | (f) Normal costs under this Section means liability for
| 8 | | pensions and other benefits which accrues to the System because | 9 | | of the
credits earned for service rendered by the participants | 10 | | during the
fiscal year and expenses of administering the | 11 | | System, but shall not
include the principal of or any | 12 | | redemption premium or interest on any bonds
issued by the Board | 13 | | or any expenses incurred or deposits required in
connection | 14 | | therewith.
| 15 | | (g) If the amount of a participant's earnings for any | 16 | | academic year used to determine the final rate of earnings, | 17 | | determined on a full-time equivalent basis, exceeds the amount | 18 | | of his or her earnings with the same employer for the previous | 19 | | academic year, determined on a full-time equivalent basis, by | 20 | | more than 6%, the participant's employer shall pay to the | 21 | | System, in addition to all other payments required under this | 22 | | Section and in accordance with guidelines established by the | 23 | | System, the present value of the increase in benefits resulting | 24 | | from the portion of the increase in earnings that is in excess | 25 | | of 6%. This present value shall be computed by the System on | 26 | | the basis of the actuarial assumptions and tables used in the |
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| 1 | | most recent actuarial valuation of the System that is available | 2 | | at the time of the computation. The System may require the | 3 | | employer to provide any pertinent information or | 4 | | documentation. | 5 | | Whenever it determines that a payment is or may be required | 6 | | under this subsection (g), the System shall calculate the | 7 | | amount of the payment and bill the employer for that amount. | 8 | | The bill shall specify the calculations used to determine the | 9 | | amount due. If the employer disputes the amount of the bill, it | 10 | | may, within 30 days after receipt of the bill, apply to the | 11 | | System in writing for a recalculation. The application must | 12 | | specify in detail the grounds of the dispute and, if the | 13 | | employer asserts that the calculation is subject to subsection | 14 | | (h) or (i) of this Section, must include an affidavit setting | 15 | | forth and attesting to all facts within the employer's | 16 | | knowledge that are pertinent to the applicability of subsection | 17 | | (h) or (i). Upon receiving a timely application for | 18 | | recalculation, the System shall review the application and, if | 19 | | appropriate, recalculate the amount due.
| 20 | | The employer contributions required under this subsection | 21 | | (g) (f) may be paid in the form of a lump sum within 90 days | 22 | | after receipt of the bill. If the employer contributions are | 23 | | not paid within 90 days after receipt of the bill, then | 24 | | interest will be charged at a rate equal to the System's annual | 25 | | actuarially assumed rate of return on investment compounded | 26 | | annually from the 91st day after receipt of the bill. Payments |
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| 1 | | must be concluded within 3 years after the employer's receipt | 2 | | of the bill. | 3 | | (h) This subsection (h) applies only to payments made or | 4 | | salary increases given on or after June 1, 2005 but before July | 5 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 6 | | require the System to refund any payments received before July | 7 | | 31, 2006 (the effective date of Public Act 94-1057). | 8 | | When assessing payment for any amount due under subsection | 9 | | (g), the System shall exclude earnings increases paid to | 10 | | participants under contracts or collective bargaining | 11 | | agreements entered into, amended, or renewed before June 1, | 12 | | 2005.
| 13 | | When assessing payment for any amount due under subsection | 14 | | (g), the System shall exclude earnings increases paid to a | 15 | | participant at a time when the participant is 10 or more years | 16 | | from retirement eligibility under Section 15-135.
| 17 | | When assessing payment for any amount due under subsection | 18 | | (g), the System shall exclude earnings increases resulting from | 19 | | overload work, including a contract for summer teaching, or | 20 | | overtime when the employer has certified to the System, and the | 21 | | System has approved the certification, that: (i) in the case of | 22 | | overloads (A) the overload work is for the sole purpose of | 23 | | academic instruction in excess of the standard number of | 24 | | instruction hours for a full-time employee occurring during the | 25 | | academic year that the overload is paid and (B) the earnings | 26 | | increases are equal to or less than the rate of pay for |
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| 1 | | academic instruction computed using the participant's current | 2 | | salary rate and work schedule; and (ii) in the case of | 3 | | overtime, the overtime was necessary for the educational | 4 | | mission. | 5 | | When assessing payment for any amount due under subsection | 6 | | (g), the System shall exclude any earnings increase resulting | 7 | | from (i) a promotion for which the employee moves from one | 8 | | classification to a higher classification under the State | 9 | | Universities Civil Service System, (ii) a promotion in academic | 10 | | rank for a tenured or tenure-track faculty position, or (iii) a | 11 | | promotion that the Illinois Community College Board has | 12 | | recommended in accordance with subsection (k) of this Section. | 13 | | These earnings increases shall be excluded only if the | 14 | | promotion is to a position that has existed and been filled by | 15 | | a member for no less than one complete academic year and the | 16 | | earnings increase as a result of the promotion is an increase | 17 | | that results in an amount no greater than the average salary | 18 | | paid for other similar positions. | 19 | | (i) When assessing payment for any amount due under | 20 | | subsection (g), the System shall exclude any salary increase | 21 | | described in subsection (h) 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 (g) of this Section.
| 3 | | (j) 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 | | (k) The Illinois Community College Board shall adopt rules | 19 | | for recommending lists of promotional positions submitted to | 20 | | the Board by community colleges and for reviewing the | 21 | | promotional lists on an annual basis. When recommending | 22 | | promotional lists, the Board shall consider the similarity of | 23 | | the positions submitted to those positions recognized for State | 24 | | universities by the State Universities Civil Service System. | 25 | | The Illinois Community College Board shall file a copy of its | 26 | | findings with the System. The System shall consider the |
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| 1 | | findings of the Illinois Community College Board when making | 2 | | determinations under this Section. The System shall not exclude | 3 | | any earnings increases resulting from a promotion when the | 4 | | promotion was not submitted by a community college. Nothing in | 5 | | this subsection (k) shall require any community college to | 6 | | submit any information to the Community College Board.
| 7 | | (l) For purposes of determining the required State | 8 | | contribution to the System, the value of the System's assets | 9 | | shall be equal to the actuarial value of the System's assets, | 10 | | which shall be calculated as follows: | 11 | | As of June 30, 2008, the actuarial value of the System's | 12 | | assets shall be equal to the market value of the assets as of | 13 | | that date. In determining the actuarial value of the System's | 14 | | assets for fiscal years after June 30, 2008, any actuarial | 15 | | gains or losses from investment return incurred in a fiscal | 16 | | year shall be recognized in equal annual amounts over the | 17 | | 5-year period following that fiscal year. | 18 | | (m) For purposes of determining the required State | 19 | | contribution to the system for a particular year, the actuarial | 20 | | value of assets shall be assumed to earn a rate of return equal | 21 | | to the system's actuarially assumed rate of return. | 22 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 23 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 24 | | 7-13-12; revised 10-17-12.)
| 25 | | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
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| 1 | | Sec. 15-156. Obligations of State ; funding guarantees . | 2 | | (a) The payment of (1) the
required State contributions, | 3 | | (2) all benefits
granted under this system and (3) all expenses | 4 | | in connection with the
administration and operation thereof are | 5 | | obligations of the State of
Illinois to the extent specified in | 6 | | this Article. The accumulated
employee normal, additional and | 7 | | survivors insurance contributions
credited to the accounts of | 8 | | active and inactive participants
shall not be used to pay the | 9 | | State's share of the obligations.
| 10 | | (c) Pursuant to Article XIII, Section 5 of the 1970 | 11 | | Constitution of the State of Illinois, beginning on July 1, | 12 | | 2013, the State shall, as a retirement benefit to each | 13 | | participant and annuitant of the System be contractually | 14 | | obligated to the System (as a fiduciary and trustee of the | 15 | | participants and annuitants) to pay the annual required State | 16 | | contribution, as determined by the Board of the System using | 17 | | generally accepted actuarial principles, as is necessary to | 18 | | bring the total assets of the System up to 100% of the total | 19 | | actuarial liabilities of the System by the end of State fiscal | 20 | | year 2045. As a further retirement benefit and contractual | 21 | | obligation, each fiscal year, the State shall pay to each | 22 | | designated retirement system the annual required State | 23 | | contribution certified by the Board for that fiscal year. | 24 | | Payments of the annual required State contribution for each | 25 | | fiscal year shall be made in equal monthly installments. | 26 | | Additionally, beginning in fiscal year 2014, State transfers to |
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| 1 | | the Pension Stabilization Fund pursuant to Section 20 of the | 2 | | Budget Stabilization Act and payments to the System pursuant to | 3 | | Section 25 of the Budget Stabilization Act shall be further | 4 | | retirement benefits and contractual obligations. The transfers | 5 | | and payments prescribed in Sections 20 and 25 of the Budget | 6 | | Stabilization Act shall not be used by the retirement system | 7 | | when calculation any pension payment until the System has | 8 | | reached a funded level of 100%. This Section and the security | 9 | | it provides to participants and annuitants is intended to be, | 10 | | and is, a contractual right that is part of the pension | 11 | | benefits provided to the participants and annuitants. | 12 | | Notwithstanding anything to the contrary in the Court of Claims | 13 | | Act or any other law, a designated retirement system has the | 14 | | exclusive right to and shall bring a mandamus action in the | 15 | | Circuit Court of Champaign County against the State to compel | 16 | | the State to make any installment of the annual required State | 17 | | contribution required by this Section, irrespective of other | 18 | | remedies that may be available to the System. Each member or | 19 | | annuitant of the System has the right to in any judicial | 20 | | district in which the System maintains an office if the System | 21 | | fails to bring an action specified in this Section, | 22 | | irrespective of other remedies that may be available to the | 23 | | member or annuitant. In making these determinations, the | 24 | | required State contribution shall be calculated each year as a | 25 | | level percentage of payroll over the years remaining to and | 26 | | including fiscal year 2045 and shall be determined under the |
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| 1 | | projected unit credit actuarial cost method. | 2 | | (Source: P.A. 83-1440.)
| 3 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 4 | | Sec. 16-158. Contributions by State and other employing | 5 | | units.
| 6 | | (a) The State shall make contributions to the System by | 7 | | means of
appropriations from the Common School Fund and other | 8 | | State funds of amounts
which, together with other employer | 9 | | contributions, employee contributions,
investment income, and | 10 | | other income, will be sufficient to meet the cost of
| 11 | | maintaining and administering the System on a 100% 90% funded | 12 | | basis in accordance
with actuarial recommendations.
| 13 | | The Board shall determine the amount of State contributions | 14 | | required for
each fiscal year on the basis of the actuarial | 15 | | tables and other assumptions
adopted by the Board and the | 16 | | recommendations of the actuary, using the formula
in subsection | 17 | | (b-3).
| 18 | | (a-1) Annually, on or before November 15 until November 15, | 19 | | 2011, the Board shall certify to the
Governor the amount of the | 20 | | required State contribution for the coming fiscal
year. The | 21 | | certification under this subsection (a-1) shall include a copy | 22 | | of the actuarial recommendations
upon which it is based and | 23 | | shall specifically identify the System's projected State | 24 | | normal cost for that fiscal year.
| 25 | | On or before May 1, 2004, the Board shall recalculate and |
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| 1 | | recertify to
the Governor the amount of the required State | 2 | | contribution to the System for
State fiscal year 2005, taking | 3 | | into account the amounts appropriated to and
received by the | 4 | | System under subsection (d) of Section 7.2 of the General
| 5 | | Obligation Bond Act.
| 6 | | On or before July 1, 2005, 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 2006, taking | 9 | | into account the changes in required State contributions made | 10 | | by this amendatory Act of the 94th General Assembly.
| 11 | | On or before April 1, 2011, the Board shall recalculate and | 12 | | recertify to the Governor the amount of the required State | 13 | | contribution to the System for State fiscal year 2011, applying | 14 | | the changes made by Public Act 96-889 to the System's assets | 15 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 16 | | was approved on that date. | 17 | | (a-5) On or before November 1 of each year, beginning | 18 | | November 1, 2012, the Board shall submit to the State Actuary, | 19 | | the Governor, and the General Assembly a proposed certification | 20 | | of the amount of the required State contribution to the System | 21 | | for the next fiscal year, along with all of the actuarial | 22 | | assumptions, calculations, and data upon which that proposed | 23 | | certification is based. On or before January 1 of each year, | 24 | | beginning January 1, 2013, the State Actuary shall issue a | 25 | | preliminary report concerning the proposed certification and | 26 | | identifying, if necessary, recommended changes in actuarial |
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| 1 | | assumptions that the Board must consider before finalizing its | 2 | | certification of the required State contributions. On or before | 3 | | January 15, 2013 and each January 15 thereafter, the Board | 4 | | shall certify to the Governor and the General Assembly the | 5 | | amount of the required State contribution for the next fiscal | 6 | | year. The Board's certification must note any deviations from | 7 | | the State Actuary's recommended changes, the reason or reasons | 8 | | for not following the State Actuary's recommended changes, and | 9 | | the fiscal impact of not following the State Actuary's | 10 | | recommended changes on the required State contribution. | 11 | | (b) Through State fiscal year 1995, the State contributions | 12 | | shall be
paid to the System in accordance with Section 18-7 of | 13 | | the School Code.
| 14 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 15 | | of each month,
or as soon thereafter as may be practicable, the | 16 | | Board shall submit vouchers
for payment of State contributions | 17 | | to the System, in a total monthly amount of
one-twelfth of the | 18 | | required annual State contribution certified under
subsection | 19 | | (a-1).
From the
effective date of this amendatory Act of the | 20 | | 93rd General Assembly
through June 30, 2004, the Board shall | 21 | | not submit vouchers for the
remainder of fiscal year 2004 in | 22 | | excess of the fiscal year 2004
certified contribution amount | 23 | | determined under this Section
after taking into consideration | 24 | | the transfer to the System
under subsection (a) of Section | 25 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 26 | | the State Comptroller and
Treasurer by warrants drawn on the |
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| 1 | | funds appropriated to the System for that
fiscal year.
| 2 | | If in any month the amount remaining unexpended from all | 3 | | other appropriations
to the System for the applicable fiscal | 4 | | year (including the appropriations to
the System under Section | 5 | | 8.12 of the State Finance Act and Section 1 of the
State | 6 | | Pension Funds Continuing Appropriation Act) is less than the | 7 | | amount
lawfully vouchered under this subsection, the | 8 | | difference shall be paid from the
Common School Fund under the | 9 | | continuing appropriation authority provided in
Section 1.1 of | 10 | | the State Pension Funds Continuing Appropriation Act.
| 11 | | (b-2) Allocations from the Common School Fund apportioned | 12 | | to school
districts not coming under this System shall not be | 13 | | diminished or affected by
the provisions of this Article.
| 14 | | (b-3) For State fiscal years 2015 through 2045, the minimum | 15 | | contribution
to the System to be made by the State for each | 16 | | fiscal year shall be an amount
determined by the System to be | 17 | | sufficient to bring the total assets of the
System up to 100% | 18 | | of the total actuarial liabilities of the System by the end of
| 19 | | State fiscal year 2045. In making these determinations, the | 20 | | required State
contribution shall be calculated each year as a | 21 | | level percentage of payroll
over the years remaining to and | 22 | | including fiscal year 2045 and shall be
determined under the | 23 | | projected unit credit actuarial cost method. | 24 | | For State fiscal years 2012 through 2014 2045 , the minimum | 25 | | contribution
to the System to be made by the State for each | 26 | | fiscal year shall be an amount
determined by the System to be |
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| 1 | | sufficient to bring the total assets of the
System up to 90% of | 2 | | the total actuarial liabilities of the System by the end of
| 3 | | State fiscal year 2045. In making these determinations, the | 4 | | required State
contribution shall be calculated each year as a | 5 | | level percentage of payroll
over the years remaining to and | 6 | | including fiscal year 2045 and shall be
determined under the | 7 | | projected unit credit actuarial cost method.
| 8 | | For State fiscal years 1996 through 2005, the State | 9 | | contribution to the
System, as a percentage of the applicable | 10 | | employee payroll, shall be increased
in equal annual increments | 11 | | so that by State fiscal year 2011, the State is
contributing at | 12 | | the rate required under this Section; except that in the
| 13 | | following specified State fiscal years, the State contribution | 14 | | to the System
shall not be less than the following indicated | 15 | | percentages of the applicable
employee payroll, even if the | 16 | | indicated percentage will produce a State
contribution in | 17 | | excess of the amount otherwise required under this subsection
| 18 | | and subsection (a), and notwithstanding any contrary | 19 | | certification made under
subsection (a-1) before the effective | 20 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 21 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 22 | | 2003; and
13.56% in FY 2004.
| 23 | | Notwithstanding any other provision of this Article, the | 24 | | total required State
contribution for State fiscal year 2006 is | 25 | | $534,627,700.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State
contribution for State fiscal year 2007 is | 2 | | $738,014,500.
| 3 | | For each of State fiscal years 2008 through 2009, the State | 4 | | contribution to
the System, as a percentage of the applicable | 5 | | employee payroll, shall be
increased in equal annual increments | 6 | | from the required State contribution for State fiscal year | 7 | | 2007, so that by State fiscal year 2011, the
State is | 8 | | contributing at the rate otherwise required under this Section.
| 9 | | Notwithstanding any other provision of this Article, the | 10 | | total required State contribution for State fiscal year 2010 is | 11 | | $2,089,268,000 and shall be made from the proceeds of bonds | 12 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 13 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 14 | | expenses determined by the System's share of total bond | 15 | | proceeds, (ii) any amounts received from the Common School Fund | 16 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 17 | | due to the issuance of discounted bonds, if applicable. | 18 | | Notwithstanding any other provision of this Article, the
| 19 | | total required State contribution for State fiscal year 2011 is
| 20 | | the amount recertified by the System on or before April 1, 2011 | 21 | | pursuant to subsection (a-1) of this Section and shall be made | 22 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 23 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 24 | | pro rata share of bond sale
expenses determined by the System's | 25 | | share of total bond
proceeds, (ii) any amounts received from | 26 | | the Common School Fund
in fiscal year 2011, and (iii) any |
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| 1 | | reduction in bond proceeds
due to the issuance of discounted | 2 | | bonds, if applicable. This amount shall include, in addition to | 3 | | the amount certified by the System, an amount necessary to meet | 4 | | employer contributions required by the State as an employer | 5 | | under paragraph (e) of this Section, which may also be used by | 6 | | the System for contributions required by paragraph (a) of | 7 | | Section 16-127. | 8 | | Beginning in State fiscal year 2046, the minimum State | 9 | | contribution for
each fiscal year shall be the amount needed to | 10 | | maintain the total assets of
the System at 90% of the total | 11 | | actuarial liabilities of the System.
| 12 | | Amounts received by the System pursuant to Section 25 of | 13 | | the Budget Stabilization Act or Section 8.12 of the State | 14 | | Finance Act in any fiscal year do not reduce and do not | 15 | | constitute payment of any portion of the minimum State | 16 | | contribution required under this Article in that fiscal year. | 17 | | Such amounts shall not reduce, and shall not be included in the | 18 | | calculation of, the required State contributions under this | 19 | | Article in any future year until the System has reached a | 20 | | funding ratio of at least 100% 90% . A reference in this Article | 21 | | to the "required State contribution" or any substantially | 22 | | similar term does not include or apply to any amounts payable | 23 | | to the System under Section 25 of the Budget Stabilization Act. | 24 | | Notwithstanding any other provision of this Code or the | 25 | | Budget Stabilization Act, amounts transferred to the System | 26 | | pursuant to the Budget Stabilization Act after the effective |
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| 1 | | date of this amendatory Act of the 98th General Assembly do not | 2 | | reduce and do not constitute payment of any portion of the | 3 | | required State contribution under this Article in that fiscal | 4 | | year. Such amounts shall not reduce, and shall not be included | 5 | | in the calculation of, the required State contributions under | 6 | | this Article in any future year until the System has received | 7 | | payment of contributions pursuant to the Budget Stabilization | 8 | | Act. | 9 | | Notwithstanding any other provision of this Section, the | 10 | | required State
contribution for State fiscal year 2005 and for | 11 | | fiscal year 2008 and each fiscal year thereafter through State | 12 | | fiscal year 2014 , as
calculated under this Section and
| 13 | | certified under subsection (a-1), shall not exceed an amount | 14 | | equal to (i) the
amount of the required State contribution that | 15 | | would have been calculated under
this Section for that fiscal | 16 | | year if the System had not received any payments
under | 17 | | subsection (d) of Section 7.2 of the General Obligation Bond | 18 | | Act, minus
(ii) the portion of the State's total debt service | 19 | | payments for that fiscal
year on the bonds issued in fiscal | 20 | | year 2003 for the purposes of that Section 7.2, as determined
| 21 | | and certified by the Comptroller, that is the same as the | 22 | | System's portion of
the total moneys distributed under | 23 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 24 | | Act. In determining this maximum for State fiscal years 2008 | 25 | | through 2010, however, the amount referred to in item (i) shall | 26 | | be increased, as a percentage of the applicable employee |
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| 1 | | payroll, in equal increments calculated from the sum of the | 2 | | required State contribution for State fiscal year 2007 plus the | 3 | | applicable portion of the State's total debt service payments | 4 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 5 | | for the purposes of Section 7.2 of the General
Obligation Bond | 6 | | Act, so that, by State fiscal year 2011, the
State is | 7 | | contributing at the rate otherwise required under this Section.
| 8 | | (c) Payment of the required State contributions and of all | 9 | | pensions,
retirement annuities, death benefits, refunds, and | 10 | | other benefits granted
under or assumed by this System, and all | 11 | | expenses in connection with the
administration and operation | 12 | | thereof, are obligations of the State.
| 13 | | If members are paid from special trust or federal funds | 14 | | which are
administered by the employing unit, whether school | 15 | | district or other
unit, the employing unit shall pay to the | 16 | | System from such
funds the full accruing retirement costs based | 17 | | upon that
service, as determined by the System. Employer | 18 | | contributions, based on
salary paid to members from federal | 19 | | funds, may be forwarded by the distributing
agency of the State | 20 | | of Illinois to the System prior to allocation, in an
amount | 21 | | determined in accordance with guidelines established by such
| 22 | | agency and the System.
| 23 | | (d) Effective July 1, 1986, any employer of a teacher as | 24 | | defined in
paragraph (8) of Section 16-106 shall pay the | 25 | | employer's normal cost
of benefits based upon the teacher's | 26 | | service, in addition to
employee contributions, as determined |
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| 1 | | by the System. Such employer
contributions shall be forwarded | 2 | | monthly in accordance with guidelines
established by the | 3 | | System.
| 4 | | However, with respect to benefits granted under Section | 5 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 6 | | of Section 16-106, the
employer's contribution shall be 12% | 7 | | (rather than 20%) of the member's
highest annual salary rate | 8 | | for each year of creditable service granted, and
the employer | 9 | | shall also pay the required employee contribution on behalf of
| 10 | | the teacher. For the purposes of Sections 16-133.4 and | 11 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 12 | | 16-106 who is serving in that capacity
while on leave of | 13 | | absence from another employer under this Article shall not
be | 14 | | considered an employee of the employer from which the teacher | 15 | | is on leave.
| 16 | | (e) Beginning July 1, 1998, every employer of a teacher
| 17 | | shall pay to the System an employer contribution computed as | 18 | | follows:
| 19 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 20 | | employer
contribution shall be equal to 0.3% of each | 21 | | teacher's salary.
| 22 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 23 | | contribution shall be equal to 0.58% of each teacher's | 24 | | salary.
| 25 | | The school district or other employing unit may pay these | 26 | | employer
contributions out of any source of funding available |
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| 1 | | for that purpose and
shall forward the contributions to the | 2 | | System on the schedule established
for the payment of member | 3 | | contributions.
| 4 | | These employer contributions are intended to offset a | 5 | | portion of the cost
to the System of the increases in | 6 | | retirement benefits resulting from this
amendatory Act of 1998.
| 7 | | Each employer of teachers is entitled to a credit against | 8 | | the contributions
required under this subsection (e) with | 9 | | respect to salaries paid to teachers
for the period January 1, | 10 | | 2002 through June 30, 2003, equal to the amount paid
by that | 11 | | employer under subsection (a-5) of Section 6.6 of the State | 12 | | Employees
Group Insurance Act of 1971 with respect to salaries | 13 | | paid to teachers for that
period.
| 14 | | The additional 1% employee contribution required under | 15 | | Section 16-152 by
this amendatory Act of 1998 is the | 16 | | responsibility of the teacher and not the
teacher's employer, | 17 | | unless the employer agrees, through collective bargaining
or | 18 | | otherwise, to make the contribution on behalf of the teacher.
| 19 | | If an employer is required by a contract in effect on May | 20 | | 1, 1998 between the
employer and an employee organization to | 21 | | pay, on behalf of all its full-time
employees
covered by this | 22 | | Article, all mandatory employee contributions required under
| 23 | | this Article, then the employer shall be excused from paying | 24 | | the employer
contribution required under this subsection (e) | 25 | | for the balance of the term
of that contract. The employer and | 26 | | the employee organization shall jointly
certify to the System |
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| 1 | | the existence of the contractual requirement, in such
form as | 2 | | the System may prescribe. This exclusion shall cease upon the
| 3 | | termination, extension, or renewal of the contract at any time | 4 | | after May 1,
1998.
| 5 | | (f) If the amount of a teacher's salary for any school year | 6 | | used to determine final average salary exceeds the member's | 7 | | annual full-time salary rate with the same employer for the | 8 | | previous school year by more than 6%, the teacher's employer | 9 | | shall pay to the System, in addition to all other payments | 10 | | required under this Section and in accordance with guidelines | 11 | | established by the System, the present value of the increase in | 12 | | benefits resulting from the portion of the increase in salary | 13 | | that is in excess of 6%. This present value shall be computed | 14 | | by the System on the basis of the actuarial assumptions and | 15 | | tables used in the most recent actuarial valuation of the | 16 | | System that is available at the time of the computation. If a | 17 | | teacher's salary for the 2005-2006 school year is used to | 18 | | determine final average salary under this subsection (f), then | 19 | | the changes made to this subsection (f) by Public Act 94-1057 | 20 | | shall apply in calculating whether the increase in his or her | 21 | | salary is in excess of 6%. For the purposes of this Section, | 22 | | change in employment under Section 10-21.12 of the School Code | 23 | | on or after June 1, 2005 shall constitute a change in employer. | 24 | | The System may require the employer to provide any pertinent | 25 | | information or documentation.
The changes made to this | 26 | | subsection (f) by this amendatory Act of the 94th General |
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| 1 | | Assembly apply without regard to whether the teacher was in | 2 | | service on or after its effective date.
| 3 | | Whenever it determines that a payment is or may be required | 4 | | under this subsection, the System shall calculate the amount of | 5 | | the payment and bill the employer for that amount. The bill | 6 | | shall specify the calculations used to determine the amount | 7 | | due. If the employer disputes the amount of the bill, it may, | 8 | | within 30 days after receipt of the bill, apply to the System | 9 | | in writing for a recalculation. The application must specify in | 10 | | detail the grounds of the dispute and, if the employer asserts | 11 | | that the calculation is subject to subsection (g) or (h) of | 12 | | this Section, must include an affidavit setting forth and | 13 | | attesting to all facts within the employer's knowledge that are | 14 | | pertinent to the applicability of that subsection. Upon | 15 | | receiving a timely application for recalculation, the System | 16 | | shall review the application and, if appropriate, recalculate | 17 | | the amount due.
| 18 | | The employer contributions required under this subsection | 19 | | (f) may be paid in the form of a lump sum within 90 days after | 20 | | receipt of the bill. If the employer contributions are not paid | 21 | | within 90 days after receipt of the bill, then interest will be | 22 | | charged at a rate equal to the System's annual actuarially | 23 | | assumed rate of return on investment compounded annually from | 24 | | the 91st day after receipt of the bill. Payments must be | 25 | | concluded within 3 years after the employer's receipt of the | 26 | | bill.
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| 1 | | (g) This subsection (g) applies only to payments made or | 2 | | salary increases given on or after June 1, 2005 but before July | 3 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 4 | | require the System to refund any payments received before
July | 5 | | 31, 2006 (the effective date of Public Act 94-1057). | 6 | | When assessing payment for any amount due under subsection | 7 | | (f), the System shall exclude salary increases paid to teachers | 8 | | under contracts or collective bargaining agreements entered | 9 | | into, amended, or renewed before June 1, 2005.
| 10 | | When assessing payment for any amount due under subsection | 11 | | (f), the System shall exclude salary increases paid to a | 12 | | teacher at a time when the teacher is 10 or more years from | 13 | | retirement eligibility under Section 16-132 or 16-133.2.
| 14 | | When assessing payment for any amount due under subsection | 15 | | (f), the System shall exclude salary increases resulting from | 16 | | overload work, including summer school, when the school | 17 | | district has certified to the System, and the System has | 18 | | approved the certification, that (i) the overload work is for | 19 | | the sole purpose of classroom instruction in excess of the | 20 | | standard number of classes for a full-time teacher in a school | 21 | | district during a school year and (ii) the salary increases are | 22 | | equal to or less than the rate of pay for classroom instruction | 23 | | computed on the teacher's current salary and work schedule.
| 24 | | When assessing payment for any amount due under subsection | 25 | | (f), the System shall exclude a salary increase resulting from | 26 | | a promotion (i) for which the employee is required to hold a |
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| 1 | | certificate or supervisory endorsement issued by the State | 2 | | Teacher Certification Board that is a different certification | 3 | | or supervisory endorsement than is required for the teacher's | 4 | | previous position and (ii) to a position that has existed and | 5 | | been filled by a member for no less than one complete academic | 6 | | year and the salary increase from the promotion is an increase | 7 | | that results in an amount no greater than the lesser of the | 8 | | average salary paid for other similar positions in the district | 9 | | requiring the same certification or the amount stipulated in | 10 | | the collective bargaining agreement for a similar position | 11 | | requiring the same certification.
| 12 | | When assessing payment for any amount due under subsection | 13 | | (f), the System shall exclude any payment to the teacher from | 14 | | the State of Illinois or the State Board of Education over | 15 | | which the employer does not have discretion, notwithstanding | 16 | | that the payment is included in the computation of final | 17 | | average salary.
| 18 | | (h) When assessing payment for any amount due under | 19 | | subsection (f), the System shall exclude any salary increase | 20 | | described in subsection (g) of this Section given on or after | 21 | | July 1, 2011 but before July 1, 2014 under a contract or | 22 | | collective bargaining agreement entered into, amended, or | 23 | | renewed on or after June 1, 2005 but before July 1, 2011. | 24 | | Notwithstanding any other provision of this Section, any | 25 | | payments made or salary increases given after June 30, 2014 | 26 | | shall be used in assessing payment for any amount due under |
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| 1 | | subsection (f) of this Section.
| 2 | | (i) The System shall prepare a report and file copies of | 3 | | the report with the Governor and the General Assembly by | 4 | | January 1, 2007 that contains all of the following information: | 5 | | (1) The number of recalculations required by the | 6 | | changes made to this Section by Public Act 94-1057 for each | 7 | | employer. | 8 | | (2) The dollar amount by which each employer's | 9 | | contribution to the System was changed due to | 10 | | recalculations required by Public Act 94-1057. | 11 | | (3) The total amount the System received from each | 12 | | employer as a result of the changes made to this Section by | 13 | | Public Act 94-4. | 14 | | (4) The increase in the required State contribution | 15 | | resulting from the changes made to this Section by Public | 16 | | Act 94-1057.
| 17 | | (j) For purposes of determining the required State | 18 | | contribution to the System, the value of the System's assets | 19 | | shall be equal to the actuarial value of the System's assets, | 20 | | which shall be calculated as follows: | 21 | | As of June 30, 2008, the actuarial value of the System's | 22 | | assets shall be equal to the market value of the assets as of | 23 | | that date. In determining the actuarial value of the System's | 24 | | assets for fiscal years after June 30, 2008, any actuarial | 25 | | gains or losses from investment return incurred in a fiscal | 26 | | year shall be recognized in equal annual amounts over the |
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| 1 | | 5-year period following that fiscal year. | 2 | | (k) For purposes of determining the required State | 3 | | contribution to the system for a particular year, the actuarial | 4 | | value of assets shall be assumed to earn a rate of return equal | 5 | | to the system's actuarially assumed rate of return. | 6 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 7 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | 8 | | 6-18-12; 97-813, eff. 7-13-12.)
| 9 | | (40 ILCS 5/16-158.2 new) | 10 | | Sec. 16-158.2. Obligations of State; funding guarantee. | 11 | | Pursuant to Article XIII, Section 5 of the 1970 Constitution of | 12 | | the State of Illinois, beginning on July 1, 2013, the State | 13 | | shall, as a retirement benefit to each participant and | 14 | | annuitant of the System be contractually obligated to the | 15 | | System (as a fiduciary and trustee of the participants and | 16 | | annuitants) to pay the annual required State contribution, as | 17 | | determined by the Board of the System using generally accepted | 18 | | actuarial principles, as is necessary to bring the total assets | 19 | | of the System up to 100% of the total actuarial liabilities of | 20 | | the System by the end of State fiscal year 2045. As a further | 21 | | retirement benefit and contractual obligation, each fiscal | 22 | | year, the State shall pay to each designated retirement system | 23 | | the annual required State contribution certified by the Board | 24 | | for that fiscal year. Payments of the annual required State | 25 | | contribution for each fiscal year shall be made in equal |
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| 1 | | monthly installments. Additionally, beginning in fiscal year | 2 | | 2014, State transfers to the Pension Stabilization Fund | 3 | | pursuant to Section 20 of the Budget Stabilization Act and | 4 | | payments to the System pursuant to Section 25 of the Budget | 5 | | Stabilization Act shall be further retirement benefits and | 6 | | contractual obligations. The transfers and payments prescribed | 7 | | in Sections 20 and 25 of the Budget Stabilization Act shall not | 8 | | be used by the retirement system when calculation any pension | 9 | | payment until the System has reached a funded level of 100%. | 10 | | This Section and the security it provides to participants and | 11 | | annuitants is intended to be, and is, a contractual right that | 12 | | is part of the pension benefits provided to the participants | 13 | | and annuitants. Notwithstanding anything to the contrary in the | 14 | | Court of Claims Act or any other law, a designated retirement | 15 | | system has the exclusive right to and shall bring a mandamus | 16 | | action in the Circuit Court of Sangamon County against the | 17 | | State to compel the State to make any installment of the annual | 18 | | required State contribution required by this Section, | 19 | | irrespective of other remedies that may be available to the | 20 | | System. Each member or annuitant of the System has the right to | 21 | | in any judicial district in which the System maintains an | 22 | | office if the System fails to bring an action specified in this | 23 | | Section, irrespective of other remedies that may be available | 24 | | to the member or annuitant. In making these determinations, the | 25 | | required State contribution shall be calculated each year as a | 26 | | level percentage of payroll over the years remaining to and |
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| 1 | | including fiscal year 2045 and shall be determined under the | 2 | | projected unit credit actuarial cost method. | 3 | | Section 99. Effective date. This Act takes effect July 1, | 4 | | 2013.".
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