Full Text of SB1687 98th General Assembly
SB1687ham002 98TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 5/30/2013
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| 1 | | AMENDMENT TO SENATE BILL 1687
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1687, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Procurement Code is amended by | 6 | | changing Section 1-13 as follows: | 7 | | (30 ILCS 500/1-13) | 8 | | (Section scheduled to be repealed on December 31, 2014) | 9 | | Sec. 1-13. Applicability to public institutions of higher | 10 | | education. | 11 | | (a) This Code shall apply to public institutions of higher | 12 | | education, regardless of the source of the funds with which | 13 | | contracts are paid, except as provided in this Section. | 14 | | (b) Except as provided in this Section, this Code shall not | 15 | | apply to procurements made by or on behalf of public | 16 | | institutions of higher education for any of the following: |
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| 1 | | (1) Memberships in professional, academic, research, | 2 | | or athletic organizations on behalf of a public institution | 3 | | of higher education, an employee of a public institution of | 4 | | higher education, or a student at a public institution of | 5 | | higher education. | 6 | | (2) Procurement expenditures for specific individual | 7 | | events or activities paid for exclusively by revenues | 8 | | generated by the event or activity, gifts or donations for | 9 | | the event or activity, private grants, or any combination | 10 | | thereof. | 11 | | (3) Procurement expenditures for events or activities | 12 | | for which the use of specific vendors is mandated or | 13 | | identified by the sponsor of the event or activity, | 14 | | provided that the sponsor is providing a majority of the | 15 | | funding for the event or activity. | 16 | | (4) Procurement expenditures necessary to provide for | 17 | | specific athletic, artistic , or musical services, | 18 | | performances, events, or productions held at a venue | 19 | | operated by or for a public institution of higher | 20 | | education. | 21 | | (5) Procurement expenditures for periodicals , | 22 | | subscriptions, database licenses, books and other | 23 | | publications, and books procured for use by a university | 24 | | library or academic department, except for expenditures | 25 | | related to procuring textbooks for student use or materials | 26 | | for resale or rental. |
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| 1 | | (6) Procurement expenditures for placement of students | 2 | | in externships, field experiences, and rotations. | 3 | | (7) Contracts with a foreign entity necessary for | 4 | | research or educational activities, provided that the | 5 | | foreign entity either does not maintain an office in the | 6 | | United States or is the sole source of the service or | 7 | | product. | 8 | | (8) Procurements of FDA-regulated goods, products, and | 9 | | services necessary for the delivery of care and treatment | 10 | | at medical, dental, or veterinary teaching facilities | 11 | | utilized by the University of Illinois or Southern Illinois | 12 | | University. | 13 | | (9) Contracts for programming and broadcast license | 14 | | rights for university-operated radio and television | 15 | | stations. | 16 | | (10) Procurement expenditures designated in a grant | 17 | | budget approved by the grantor. | 18 | | Notice of each contract entered into by a public institution of | 19 | | higher education that is related to the procurement of goods | 20 | | and services identified in items (1) through (10) (5) of this | 21 | | subsection shall be published in the Procurement Bulletin | 22 | | within 14 days after contract execution. The Chief Procurement | 23 | | Officer shall prescribe the form and content of the notice. | 24 | | Each public institution of higher education shall provide the | 25 | | Chief Procurement Officer, on a monthly basis, in the form and | 26 | | content prescribed by the Chief Procurement Officer, a report |
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| 1 | | of contracts that are related to the procurement of goods and | 2 | | services identified in this subsection. At a minimum, this | 3 | | report shall include the name of the contractor, a description | 4 | | of the supply or service provided, the total amount of the | 5 | | contract, the term of the contract, and the exception to the | 6 | | Code utilized. A copy of any or all of these contracts shall be | 7 | | made available to the Chief Procurement Officer immediately | 8 | | upon request. The Chief Procurement Officer shall submit a | 9 | | report to the Governor and General Assembly no later than | 10 | | November 1 of each year that shall include, at a minimum, an | 11 | | annual summary of the monthly information reported to the Chief | 12 | | Procurement Officer. | 13 | | (c) Procurements made by or on behalf of public | 14 | | institutions of higher education for any of the following shall | 15 | | be made in accordance with the requirements of this Code to the | 16 | | extent practical as provided in this subsection: | 17 | | (1) Contracts with a foreign entity necessary for | 18 | | research or educational activities, provided that the | 19 | | foreign entity either does not maintain an office in the | 20 | | United States or is the sole source of the service or | 21 | | product. | 22 | | (2) Procurements of FDA-regulated goods, products, and | 23 | | services necessary for the delivery of care and treatment | 24 | | at medical, dental, or veterinary teaching facilities | 25 | | utilized by the University of Illinois or Southern Illinois | 26 | | University. |
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| 1 | | (3) Contracts for programming and broadcast license | 2 | | rights for university-operated radio and television | 3 | | stations. | 4 | | (4) Procurements required for fulfillment of a grant. | 5 | | Upon the written request of a public institution of higher | 6 | | education, the Chief Procurement Officer may waive contract | 7 | | requirements, including registration, certification, and | 8 | | hearing requirements of this Code if, based on the item to be | 9 | | procured or the terms of a grant, compliance is impractical. | 10 | | The public institution of higher education shall provide the | 11 | | Chief Procurement Officer with specific reasons for the waiver, | 12 | | including the necessity of contracting with a particular | 13 | | vendor, and shall certify that an effort was made in good faith | 14 | | to comply with the provisions of this Code. The Chief | 15 | | Procurement Officer shall provide written justification for | 16 | | any waivers. By November 1 of each year, the Chief Procurement | 17 | | Officer shall file a report with the General Assembly | 18 | | identifying each contract approved with waivers and providing | 19 | | the justification given for any waivers for each of those | 20 | | contracts. Notice of each waiver made under this subsection | 21 | | shall be published in the Procurement Bulletin within 14 days | 22 | | after contract execution. The Chief Procurement Officer shall | 23 | | prescribe the form and content of the notice. | 24 | | (d) Notwithstanding this Section, a waiver of the | 25 | | registration requirements of Section 20-160 does not permit a | 26 | | business entity and any affiliated entities or affiliated |
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| 1 | | persons to make campaign contributions if otherwise prohibited | 2 | | by Section 50-37. The total amount of contracts awarded in | 3 | | accordance with this Section shall be included in determining | 4 | | the aggregate amount of contracts or pending bids of a business | 5 | | entity and any affiliated entities or affiliated persons. | 6 | | (e) Notwithstanding subsection (e) of Section 50-10.5 of | 7 | | this Code, the Chief Procurement Officer, with the approval of | 8 | | the Executive Ethics Commission, may permit a public | 9 | | institution of higher education to accept a bid or enter into a | 10 | | contract with a business that assisted the public institution | 11 | | of higher education in determining whether there is a need for | 12 | | a contract or assisted in reviewing, drafting, or preparing | 13 | | documents related to a bid or contract, provided that the bid | 14 | | or contract is essential to research administered by the public | 15 | | institution of higher education and it is in the best interest | 16 | | of the public institution of higher education to accept the bid | 17 | | or contract. For purposes of this subsection, "business" | 18 | | includes all individuals with whom a business is affiliated, | 19 | | including, but not limited to, any officer, agent, employee, | 20 | | consultant, independent contractor, director, partner, | 21 | | manager, or shareholder of a business. The Executive Ethics | 22 | | Commission may promulgate rules and regulations for the | 23 | | implementation and administration of the provisions of this | 24 | | subsection (e). | 25 | | (f) As used in this Section: | 26 | | "Grant" means non-appropriated funding provided by a |
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| 1 | | federal or private entity to support a project or program | 2 | | administered by a public institution of higher education and | 3 | | any non-appropriated funding provided to a sub-recipient of the | 4 | | grant. | 5 | | "Public institution of higher education" means Chicago | 6 | | State University, Eastern Illinois University, Governors State | 7 | | University, Illinois State University, Northeastern Illinois | 8 | | University, Northern Illinois University, Southern Illinois | 9 | | University, University of Illinois, Western Illinois | 10 | | University, and, for purposes of this Code only, the Illinois | 11 | | Mathematics and Science Academy. | 12 | | (g) For any individual procurement of supplies or services | 13 | | (other than professional or artistic services) paid for | 14 | | exclusively by non-appropriated funds, the small purchase | 15 | | maximum in Section 20-20 of this Code shall be $100,000. For | 16 | | any procurement of professional and artistic services paid for | 17 | | exclusively by non-appropriated funds, the small purchase | 18 | | maximum in subsection (f) of Section 35-30 of this Code and | 19 | | subsection (a) of Section 35-35 of this Code shall be $100,000. | 20 | | The chief procurement officer may establish policies and | 21 | | procedures regarding the use of the small purchase method of | 22 | | source selection to ensure compliance with policies, including | 23 | | promotion of small business, diversity, and transparency. | 24 | | (h) Exceptions to Section 35-30 of this Code are allowed | 25 | | for sole source procurements, emergency procurements, and at | 26 | | the discretion of the chief procurement officer or the State |
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| 1 | | purchasing officer, but not their designees, for professional | 2 | | and artistic contracts entered into under Article 35 that are | 3 | | nonrenewable, one year or less in duration, and have a value of | 4 | | less than $100,000. Each July 1, the value established in this | 5 | | subsection shall be adjusted for inflation as determined by the | 6 | | Consumer Price Index for All Urban Consumers for all items | 7 | | published by the United States Department of Labor and rounded | 8 | | to the nearest $100. All exceptions granted under this | 9 | | subsection (h) for professional and artistic contracts must | 10 | | still be submitted to the chief procurement officer for higher | 11 | | education and published as provided for in subsection (f) of | 12 | | Section 35-30 of this Code, shall name the authorizing chief | 13 | | procurement officer or State purchasing officer, and shall | 14 | | include a brief explanation of the reason for the exception. | 15 | | (i) Nothing in this Section shall be construed to waive any | 16 | | requirements for procurements related to construction or | 17 | | construction-related services. | 18 | | (j) (g) This Section is repealed on December 31, 2014.
| 19 | | (Source: P.A. 97-643, eff. 12-20-11; 97-895, eff. 8-3-12.) | 20 | | Section 10. The State Property Control Act is amended by | 21 | | changing Section 6.04 as follows:
| 22 | | (30 ILCS 605/6.04) (from Ch. 127, par. 133b9.4)
| 23 | | Sec. 6.04.
(a) Annually, and upon at least 30 days notice, | 24 | | the administrator
may require each responsible officer to make, |
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| 1 | | or cause to be made, an
actual physical inventory check of all | 2 | | items of property under his
jurisdiction and control and said | 3 | | inventory shall be certified to the
administrator with a full | 4 | | accounting of all errors or exceptions reported
therein. | 5 | | (b) Notwithstanding any other provision of law, with | 6 | | respect to all responsible officers of public universities and | 7 | | colleges, the administrator shall require a listing of only | 8 | | those equipment items valued in excess of $2,500, except that | 9 | | (A) the administrator shall require reporting of high theft | 10 | | equipment regardless of the value of that equipment, and (B) | 11 | | furniture with more than 10 years in service shall not be | 12 | | subject to reporting. | 13 | | For the purposes of this Section, "high theft equipment" | 14 | | includes, but is not limited to, the following items: | 15 | | (1) desktop and laptop computers, servers, and | 16 | | portable data storage devices valued at more than $250; | 17 | | (2) flat screen, LCD, high definition, and plasma | 18 | | televisions and monitors valued at more than $250; | 19 | | (3) wireless devices, including portable digital | 20 | | assistants (PDAs), iPads, iPods, tablets, and cellular | 21 | | telephones valued at more than $250; | 22 | | (4) digital recording devices and video equipment | 23 | | valued at more than $250; | 24 | | (5) tools and machine shop equipment valued at more | 25 | | than $250; | 26 | | (6) all State-owned firearms and rifles regardless of |
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| 1 | | value; | 2 | | (7) all electric or gasoline-powered recreational | 3 | | vehicles or maintenance vehicles regardless of value; | 4 | | (8) other items deemed susceptible to theft or loss, as | 5 | | determined by the administrator and the responsible | 6 | | officer.
| 7 | | (Source: Laws 1955, p. 34.)
| 8 | | Section 15. The Illinois Pension Code is amended by | 9 | | changing Sections 1-103.3, 15-106, 15-107, 15-113.2, 15-126.1, | 10 | | 15-139, 15-139.5, 15-155, 15-159, 15-168.2, and 15-198, and by | 11 | | adding Sections 1-103.4, 15-155.1, and 15-155.2 as follows:
| 12 | | (40 ILCS 5/1-103.3)
| 13 | | Sec. 1-103.3. Application of 1994 amendment; funding | 14 | | standard.
| 15 | | (a) The provisions of Public Act 88-593 this amendatory Act | 16 | | of 1994 that change the method of
calculating, certifying, and | 17 | | paying the required State contributions to the
retirement | 18 | | systems established under Articles 2, 14, 15, 16, and 18 shall
| 19 | | first apply to the State contributions required for State | 20 | | fiscal year 1996.
| 21 | | (b) (Blank) The General Assembly declares that a funding | 22 | | ratio (the ratio of a
retirement system's total assets to its | 23 | | total actuarial liabilities) of 90% is
an appropriate goal for | 24 | | State-funded retirement systems in Illinois, and it
finds that |
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| 1 | | a funding ratio of 90% is now the generally-recognized norm
| 2 | | throughout the nation for public employee retirement systems | 3 | | that are
considered to be financially secure and funded in an | 4 | | appropriate and
responsible manner .
| 5 | | (c) Every 5 years, beginning in 1999, the Commission on | 6 | | Government Forecasting and Accountability, in consultation | 7 | | with the affected retirement systems and the
Governor's Office | 8 | | of Management and Budget (formerly
Bureau
of the Budget), shall | 9 | | consider and determine whether the funding goals 90% funding | 10 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | 11 | | continue subsection (b) continues to represent an appropriate | 12 | | funding goals goal for
those State-funded retirement systems in | 13 | | Illinois , and it shall report its findings
and recommendations | 14 | | on this subject to the Governor and the General Assembly.
| 15 | | (Source: P.A. 93-1067, eff. 1-15-05.)
| 16 | | (40 ILCS 5/1-103.4 new) | 17 | | Sec. 1-103.4. Benefit increases; third reading | 18 | | requirement. A bill containing a benefit increase under this | 19 | | Code may be moved from second to third reading in either house | 20 | | of the General Assembly only with the concurrence of 3/4 of the | 21 | | members elected to that house by record vote.
| 22 | | (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
| 23 | | Sec. 15-106. Employer. "Employer": The University of | 24 | | Illinois, Southern
Illinois University, Chicago State |
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| 1 | | University, Eastern Illinois University,
Governors State | 2 | | University, Illinois State University, Northeastern Illinois
| 3 | | University, Northern Illinois University, Western Illinois | 4 | | University, the
State Board of Higher Education, the Illinois | 5 | | Mathematics and Science Academy,
the University Civil Service | 6 | | Merit Board, the Board of
Trustees of the State Universities | 7 | | Retirement System, the Illinois Community
College Board, | 8 | | community college
boards, any association of community college | 9 | | boards organized under Section
3-55 of the Public Community | 10 | | College Act, the Board of Examiners established
under the | 11 | | Illinois Public Accounting Act, and, only during the period for | 12 | | which
employer contributions required under Section 15-155 are | 13 | | paid, the following
organizations: the alumni associations, | 14 | | the foundations and the athletic
associations which are | 15 | | affiliated with the universities and colleges included
in this | 16 | | Section as employers. | 17 | | A department as defined in Section 14-103.04 is
an employer | 18 | | for any person appointed by the Governor under the Civil
| 19 | | Administrative Code of Illinois who is a participating employee | 20 | | as defined in
Section 15-109. The Department of Central | 21 | | Management Services is an employer with respect to persons | 22 | | employed by the State Board of Higher Education in positions | 23 | | with the Illinois Century Network as of June 30, 2004 who | 24 | | remain continuously employed after that date by the Department | 25 | | of Central Management Services in positions with the Illinois | 26 | | Century Network, the Bureau of Communication and Computer |
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| 1 | | Services, or, if applicable, any successor bureau.
| 2 | | Prior to July 1, 2014, the The cities of Champaign and | 3 | | Urbana shall be considered
employers, but only during the | 4 | | period for which contributions are required to
be made under | 5 | | subsection (b-1) of Section 15-155 and only with respect to
| 6 | | individuals described in subsection (h) of Section 15-107. | 7 | | Beginning July 1, 2014, the cities of Champaign and Urbana | 8 | | shall be considered
employers but only with respect to | 9 | | individuals described in subsection (h) of Section 15-107.
| 10 | | Beginning July 1, 2014, a teacher organization that serves | 11 | | System
participants shall be considered an employer but only | 12 | | with respect to (1) individuals described in subsection (i) of | 13 | | Section 15-107 and (2) individuals in its service who are | 14 | | entitled to accrue service credit under Section 15-113.2 during | 15 | | a special leave of absence with that organization. | 16 | | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | 17 | | Sec. 999 .)
| 18 | | (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
| 19 | | Sec. 15-107. Employee.
| 20 | | (a) "Employee" means any member of the educational, | 21 | | administrative,
secretarial, clerical, mechanical, labor or | 22 | | other staff of an employer
whose employment is permanent and | 23 | | continuous or who is employed in a
position in which services | 24 | | are expected to be rendered on a continuous
basis for at least | 25 | | 4 months or one academic term, whichever is less, who
(A) |
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| 1 | | receives payment for personal services on a warrant issued | 2 | | pursuant to
a payroll voucher certified by an employer and | 3 | | drawn by the State
Comptroller upon the State Treasurer or by | 4 | | an employer upon trust, federal
or other funds, or (B) is on a | 5 | | leave of absence without pay. Employment
which is irregular, | 6 | | intermittent or temporary shall not be considered
continuous | 7 | | for purposes of this paragraph.
| 8 | | However, a person is not an "employee" if he or she:
| 9 | | (1) is a student enrolled in and regularly attending | 10 | | classes in a
college or university which is an employer, | 11 | | and is employed on a temporary
basis at less than full | 12 | | time;
| 13 | | (2) is currently receiving a retirement annuity or a | 14 | | disability
retirement annuity under Section 15-153.2 from | 15 | | this System;
| 16 | | (3) is on a military leave of absence;
| 17 | | (4) is eligible to participate in the Federal Civil | 18 | | Service Retirement
System and is currently making | 19 | | contributions to that system based upon
earnings paid by an | 20 | | employer;
| 21 | | (5) is on leave of absence without pay for more than 60 | 22 | | days
immediately following termination of disability | 23 | | benefits under this
Article;
| 24 | | (6) is hired after June 30, 1979 as a public service | 25 | | employment program
participant under the Federal | 26 | | Comprehensive Employment and Training Act
and receives |
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| 1 | | earnings in whole or in part from funds provided under that
| 2 | | Act; or
| 3 | | (7) is employed on or after July 1, 1991 to perform | 4 | | services that
are excluded by subdivision (a)(7)(f) or | 5 | | (a)(19) of Section 210 of the
federal Social Security Act | 6 | | from the definition of employment given in that
Section (42 | 7 | | U.S.C. 410).
| 8 | | (b) Any employer may, by filing a written notice with the | 9 | | board, exclude
from the definition of "employee" all persons | 10 | | employed pursuant to a federally
funded contract entered into | 11 | | after July 1, 1982 with a federal military
department in a | 12 | | program providing training in military courses to federal
| 13 | | military personnel on a military site owned by the United | 14 | | States Government,
if this exclusion is not prohibited by the | 15 | | federally funded contract or
federal laws or rules governing | 16 | | the administration of the contract.
| 17 | | (c) Any person appointed by the Governor under the Civil | 18 | | Administrative
Code of the State is an employee, if he or she | 19 | | is a participant in this
system on the effective date of the | 20 | | appointment.
| 21 | | (d) A participant on lay-off status under civil service | 22 | | rules is
considered an employee for not more than 120 days from | 23 | | the date of the lay-off.
| 24 | | (e) A participant is considered an employee during (1) the | 25 | | first 60 days
of disability leave, (2) the period, not to | 26 | | exceed one year, in which his
or her eligibility for disability |
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| 1 | | benefits is being considered by the board
or reviewed by the | 2 | | courts, and (3) the period he or she receives disability
| 3 | | benefits under the provisions of Section 15-152, workers' | 4 | | compensation or
occupational disease benefits, or disability | 5 | | income under an insurance
contract financed wholly or partially | 6 | | by the employer.
| 7 | | (f) Absences without pay, other than formal leaves of | 8 | | absence, of less
than 30 calendar days, are not considered as | 9 | | an interruption of a person's
status as an employee. If such | 10 | | absences during any period of 12 months
exceed 30 work days, | 11 | | the employee status of the person is considered as
interrupted | 12 | | as of the 31st work day.
| 13 | | (g) A staff member whose employment contract requires | 14 | | services during
an academic term is to be considered an | 15 | | employee during the summer and
other vacation periods, unless | 16 | | he or she declines an employment contract
for the succeeding | 17 | | academic term or his or her employment status is
otherwise | 18 | | terminated, and he or she receives no earnings during these | 19 | | periods.
| 20 | | (h) An individual who was a participating employee employed | 21 | | in the fire
department of the University of Illinois's | 22 | | Champaign-Urbana campus immediately
prior to the elimination | 23 | | of that fire department and who immediately after the
| 24 | | elimination of that fire department became employed by the fire | 25 | | department of
the City of Urbana or the City of Champaign shall | 26 | | continue to be considered as
an employee for purposes of this |
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| 1 | | Article for so long as the individual remains
employed as a | 2 | | firefighter by the City of Urbana or the City of Champaign. The
| 3 | | individual shall cease to be considered an employee under this | 4 | | subsection (h)
upon the first termination of the individual's | 5 | | employment as a firefighter by
the City of Urbana or the City | 6 | | of Champaign.
| 7 | | (i) An individual who is employed on a full-time basis as | 8 | | an officer
or employee of a statewide teacher organization that | 9 | | serves System
participants or an officer of a national teacher | 10 | | organization that serves
System participants may participate | 11 | | in the System and shall be deemed an
employee, provided that | 12 | | (1) the individual has previously earned
creditable service | 13 | | under this Article, (2) the individual files with the
System an | 14 | | irrevocable election to become a participant before January 5, | 15 | | 2012 ( the effective date of Public Act 97-651) this amendatory | 16 | | Act of the 97th General Assembly , (3) the
individual does not | 17 | | receive credit for that employment under any other Article
of | 18 | | this Code, and (4) the individual first became a full-time | 19 | | employee of the teacher organization and becomes a participant | 20 | | before January 5, 2012 the effective date of this amendatory | 21 | | Act of the 97th General Assembly . An employee under this | 22 | | subsection (i) is responsible for paying
to the System both (A) | 23 | | employee contributions based on the actual compensation
| 24 | | received for service with the teacher organization and (B) | 25 | | until July 1, 2014, employer
contributions equal to the normal | 26 | | costs (as defined in Section 15-155)
resulting from that |
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| 1 | | service; all or any part of these contributions may be
paid on | 2 | | the employee's behalf or picked up for tax purposes (if | 3 | | authorized
under federal law) by the teacher organization. | 4 | | Beginning July 1, 2014, the employer of that employee is | 5 | | responsible for paying the employer
contributions
resulting | 6 | | from that service, as provided in Section 15-155.
| 7 | | A person who is an employee as defined in this subsection | 8 | | (i) may establish
service credit for similar employment prior | 9 | | to becoming an employee under this
subsection by paying to the | 10 | | System for that employment the contributions
specified in this | 11 | | subsection, plus interest at the effective rate from the
date | 12 | | of service to the date of payment. However, credit shall not be | 13 | | granted
under this subsection for any such prior employment for | 14 | | which the applicant
received credit under any other provision | 15 | | of this Code, or during which
the applicant was on a leave of | 16 | | absence under Section 15-113.2.
| 17 | | (j) A person employed by the State Board of Higher | 18 | | Education in a position with the Illinois Century Network as of | 19 | | June 30, 2004 shall be considered to be an employee for so long | 20 | | as he or she remains continuously employed after that date by | 21 | | the Department of Central Management Services in a position | 22 | | with the Illinois Century Network, the Bureau of Communication | 23 | | and Computer Services, or, if applicable, any successor bureau
| 24 | | and meets the requirements of subsection (a).
| 25 | | (Source: P.A. 97-651, eff. 1-5-12.)
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| 1 | | (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
| 2 | | Sec. 15-113.2. Service for leaves of absence. "Service for | 3 | | leaves of
absence" includes those periods of leaves of absence | 4 | | at less than 50%
pay, except military leave and periods of | 5 | | disability leave in excess of 60
days, for which the employee | 6 | | pays the contributions required under Section
15-157 in | 7 | | accordance with rules prescribed by the board based upon the
| 8 | | employee's basic compensation on the date the leave begins, or | 9 | | in the case
of leave for service with a teacher organization, | 10 | | based upon the actual
compensation received by the employee for | 11 | | such service after January 26,
1988, if the employee so elects | 12 | | within 30 days of that date or the date the
leave for service | 13 | | with a teacher organization begins, whichever is later;
| 14 | | provided that the employee (1) returns to employment covered by | 15 | | this system
at the expiration of the leave, or within 30 days | 16 | | after the termination of
a disability which occurs during the | 17 | | leave and continues this employment
at a percentage of time | 18 | | equal to or greater than the percentage of time
immediately | 19 | | preceding the leave of absence for at least 8 consecutive
| 20 | | months or a period equal to the period of the leave,
whichever | 21 | | is less, or (2) is precluded from meeting the foregoing
| 22 | | conditions because of disability or death. If service credit is | 23 | | denied
because the employee fails to meet these conditions, the | 24 | | contributions
covering the leave of absence shall be refunded | 25 | | without interest. The
return to employment condition does not | 26 | | apply if the leave of absence is
for service with a teacher |
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| 1 | | organization.
| 2 | | Service credit provided under this Section shall not exceed | 3 | | 3 years in
any period of 10 years, unless the employee is on | 4 | | special leave granted
by the employer for service with a | 5 | | teacher organization. Until July 1, 2014, commencing | 6 | | Commencing with
the fourth year in any period of 10 years, a | 7 | | participant on such special
leave is also required to pay | 8 | | employer contributions equal to the normal
cost as defined in | 9 | | Section 15-155, based upon the employee's basic compensation
on | 10 | | the date the leave begins, or based upon the actual | 11 | | compensation
received by the employee for service with a | 12 | | teacher organization if the
employee has so elected. Beginning | 13 | | July 1, 2014, the employer of a participant on such special | 14 | | leave shall pay the employer
contributions
attributable to the | 15 | | resulting service credit, as provided in Section 15-155.
| 16 | | (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
| 17 | | (40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
| 18 | | Sec. 15-126.1. Academic year. "Academic year": The | 19 | | 12-month period
beginning on the first day of the fall term as | 20 | | determined
by each employer, or if the employer does not have | 21 | | an academic program
divided into terms, then beginning | 22 | | September 1. For the purposes of Section 15-139.5 and | 23 | | subsection (b) of Section 15-139, however, "academic year" | 24 | | means the 12-month period beginning September 1.
| 25 | | (Source: P.A. 84-1472.)
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| 1 | | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 2 | | Sec. 15-139. Retirement annuities; cancellation; suspended | 3 | | during
employment. | 4 | | (a) If an annuitant returns to employment for an employer
| 5 | | within 60 days after the beginning of the retirement annuity | 6 | | payment
period, the retirement annuity shall be cancelled, and | 7 | | the annuitant shall
refund to the System the total amount of | 8 | | the retirement annuity payments
which he or she received. If | 9 | | the retirement annuity is cancelled, the
participant shall | 10 | | continue to participate in the System.
| 11 | | (b) If an annuitant retires prior to age 60 and receives or | 12 | | becomes
entitled to receive during any month compensation in | 13 | | excess of the monthly
retirement annuity (including any | 14 | | automatic annual increases) for services
performed after the | 15 | | date of retirement for any employer under this System, that
| 16 | | portion of the monthly
retirement annuity provided by employer | 17 | | contributions shall not be payable.
| 18 | | If an annuitant retires at age 60 or over and receives
or | 19 | | becomes entitled to receive during any academic year | 20 | | compensation in
excess of the difference between his or her | 21 | | highest annual earnings prior
to retirement and his or her | 22 | | annual retirement annuity computed under Rule
1, Rule 2, Rule | 23 | | 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| 24 | | 15-136.4,
for services performed after
the date of retirement | 25 | | for any employer under this System, that portion of
the monthly |
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| 1 | | retirement annuity provided by employer contributions shall be
| 2 | | reduced by an amount equal to the compensation that exceeds | 3 | | such difference.
| 4 | | However, any remuneration received for serving as a member | 5 | | of the
Illinois Educational Labor Relations Board shall be | 6 | | excluded from
"compensation" for the purposes of this | 7 | | subsection (b), and serving as a
member of the Illinois | 8 | | Educational Labor Relations Board shall not be
deemed to be a | 9 | | return to employment for the purposes of this Section.
This | 10 | | provision applies without regard to whether service was | 11 | | terminated
prior to the effective date of this amendatory Act | 12 | | of 1991. | 13 | | "Academic year", as used in this subsection (b), means the | 14 | | 12-month period beginning September 1.
| 15 | | (c) If an employer certifies that an annuitant has been | 16 | | reemployed
on a permanent and continuous basis or in a position
| 17 | | in which the annuitant is expected to serve for at least 9 | 18 | | months, the
annuitant shall resume his or her status as a | 19 | | participating employee
and shall be entitled to all rights | 20 | | applicable to
participating employees upon filing with the | 21 | | board an
election to forgo all annuity payments during the | 22 | | period
of reemployment. Upon subsequent retirement, the | 23 | | retirement
annuity shall consist of the annuity which was | 24 | | terminated by the reemployment,
plus the additional retirement | 25 | | annuity based upon service
granted during the period of | 26 | | reemployment, but the combined retirement
annuity shall not |
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| 1 | | exceed the maximum
annuity applicable on the date of the last | 2 | | retirement.
| 3 | | The total service and earnings credited before and after | 4 | | the initial
date of retirement shall be considered in | 5 | | determining eligibility of the
employee or the employee's | 6 | | beneficiary to benefits under this
Article, and in calculating | 7 | | final rate of earnings.
| 8 | | In determining the death benefit
payable to a beneficiary | 9 | | of an annuitant who again becomes a participating
employee | 10 | | under this Section, accumulated normal and additional
| 11 | | contributions shall be considered as the sum of the accumulated | 12 | | normal and
additional contributions at the date of initial | 13 | | retirement and the
accumulated normal and additional | 14 | | contributions credited after that date,
less the sum of the | 15 | | annuity payments received by the annuitant.
| 16 | | The survivors insurance benefits provided under Section | 17 | | 15-145 shall not
be applicable to an annuitant who resumes his | 18 | | or her status as a
participating employee, unless the | 19 | | annuitant, at the time of initial
retirement, has a survivors | 20 | | insurance beneficiary who could qualify
for such benefits.
| 21 | | If the participant's employment is terminated because of | 22 | | circumstances
other than death before 9 months from the date of | 23 | | reemployment, the
provisions of this Section regarding | 24 | | resumption of status as a
participating employee shall not | 25 | | apply. The normal and survivors insurance
contributions which | 26 | | are deducted during this period shall be refunded to
the |
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| 1 | | annuitant without interest, and subsequent benefits under this | 2 | | Article
shall be the same as those which were applicable prior | 3 | | to the date the
annuitant resumed employment.
| 4 | | The amendments made to this Section by this amendatory Act | 5 | | of the 91st
General Assembly apply without regard to whether | 6 | | the annuitant was in service
on or after the effective date of | 7 | | this amendatory Act.
| 8 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 9 | | (40 ILCS 5/15-139.5) | 10 | | Sec. 15-139.5. Return to work by affected annuitant; notice | 11 | | and contribution by employer. | 12 | | (a) An employer who employs or re-employs a person | 13 | | receiving a retirement annuity from the System in an academic | 14 | | year beginning on or after August 1, 2014 2013 must notify the | 15 | | System of that employment within 60 days after employing the | 16 | | annuitant. The notice must include a summary copy of the | 17 | | contract of employment or ; if no written contract of employment | 18 | | exists, then the notice must specify the rate of compensation | 19 | | and the anticipated length of employment of that annuitant. The | 20 | | notice must specify whether the annuitant will be compensated | 21 | | from federal, corporate, foundation, or trust funds or grants | 22 | | of State funds that identify the principal investigator by | 23 | | name. The notice must include the employer's determination of | 24 | | whether or not the annuitant is an "affected annuitant" as | 25 | | defined in subsection (b). |
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| 1 | | The employer must also record, document, and certify to the | 2 | | System (i) the number of paid days and paid weeks worked by the | 3 | | annuitant in the academic year, (ii) the amount of compensation | 4 | | paid to the annuitant for employment during the academic year, | 5 | | and (ii) (iii) the amount of that compensation, if any, that | 6 | | comes from either federal, corporate, foundation, or trust | 7 | | funds or grants of State funds that identify the principal | 8 | | investigator by name. | 9 | | As used in this Section, "academic year" means the 12-month | 10 | | period beginning September 1. has the meaning ascribed to that | 11 | | term in Section 15-126.1; "paid day" means a day on which a | 12 | | person performs personal services for an employer and for which | 13 | | the person is compensated by the employer; and "paid week" | 14 | | means a calendar week in which a person has at least one paid | 15 | | day. | 16 | | For the purposes of this Section, an annuitant whose | 17 | | employment by an employer extends over more than one academic | 18 | | year shall be deemed to be re-employed by that employer in each | 19 | | of those academic years. | 20 | | The System may specify the time, form, and manner of | 21 | | providing the determinations, notifications, certifications, | 22 | | and documentation required under this Section. | 23 | | (b) A person receiving a retirement annuity from the System | 24 | | becomes an "affected annuitant" on the first day of the | 25 | | academic year following the academic year in which the | 26 | | annuitant first meets both of the following condition |
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| 1 | | conditions : | 2 | | (1) (Blank). While receiving a retirement annuity | 3 | | under this Article, the annuitant has been employed on or | 4 | | after August 1, 2013 by one or more employers under this | 5 | | Article for a total of more than 18 paid weeks (which need | 6 | | not have been with the same employer or in the same | 7 | | academic year); except that any periods of employment for | 8 | | which the annuitant was compensated solely from federal, | 9 | | corporate, foundation, or trust funds or grants of State | 10 | | funds that identify the principal investigator by name are | 11 | | excluded. | 12 | | (2) While receiving a retirement annuity under this | 13 | | Article, the annuitant was employed on or after August 1, | 14 | | 2014 2013 by one or more employers under this Article and | 15 | | received
or became entitled to receive during an academic | 16 | | year compensation for that employment in excess of 40% of | 17 | | his or her highest annual earnings prior
to retirement; | 18 | | except that compensation paid from federal, corporate, | 19 | | foundation, or trust funds or grants of State funds that | 20 | | identify the principal investigator by name is excluded. | 21 | | A person who becomes an affected annuitant remains an | 22 | | affected annuitant, except for any period during which the | 23 | | person returns to active service and does not receive a | 24 | | retirement annuity from the System. | 25 | | (c) It is the obligation of the employer to determine | 26 | | whether an annuitant is an affected annuitant before employing |
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| 1 | | the annuitant. For that purpose the employer may require the | 2 | | annuitant to disclose and document his or her relevant prior | 3 | | employment and earnings history. Failure of the employer to | 4 | | make this determination correctly and in a timely manner or to | 5 | | include this determination with the notification required | 6 | | under subsection (a) does not excuse the employer from making | 7 | | the contribution required under subsection (e). | 8 | | The System may assist the employer in determining whether a | 9 | | person is an affected annuitant. The System shall inform the | 10 | | employer if it discovers that the employer's determination is | 11 | | inconsistent with the employment and earnings information in | 12 | | the System's records. | 13 | | (d) Upon the request of an annuitant, the System shall | 14 | | certify to the annuitant or the employer the following | 15 | | information as reported by the employers, as that information | 16 | | is indicated in the records of the System: (i) the annuitant's | 17 | | highest annual earnings prior
to retirement, (ii) the number of | 18 | | paid weeks worked by the annuitant for an employer on or after | 19 | | August 1, 2013, (iii) the compensation paid for that employment | 20 | | in each academic year, and (iii) (iv) whether any of that | 21 | | employment or compensation has been certified to the System as | 22 | | being paid from federal, corporate, foundation, or trust funds | 23 | | or grants of State funds that identify the principal | 24 | | investigator by name. The System shall only be required to | 25 | | certify information that is received from the employers. | 26 | | (e) In addition to the requirements of subsection (a), an |
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| 1 | | employer who employs an affected annuitant must pay to the | 2 | | System an employer contribution in the amount and manner | 3 | | provided in this Section, unless the annuitant is compensated | 4 | | by that employer solely from federal, corporate, foundation, or | 5 | | trust funds or grants of State funds that identify the | 6 | | principal investigator by name. | 7 | | The employer contribution required under this Section for | 8 | | employment of an affected annuitant in an academic year shall | 9 | | be equal to 12 times the amount of the gross monthly retirement | 10 | | annuity payable to the annuitant for the month in which the | 11 | | first paid day of that employment in that academic year occurs, | 12 | | after any reduction in that annuity that may be imposed under | 13 | | subsection (b) of Section 15-139. | 14 | | If an affected annuitant is employed by more than one | 15 | | employer in an academic year, the employer contribution | 16 | | required under this Section shall be divided among those | 17 | | employers in proportion to their respective portions of the | 18 | | total compensation paid to the affected annuitant for that | 19 | | employment during that academic year. | 20 | | If the System determines that an employer, without | 21 | | reasonable justification, has failed to make the determination | 22 | | of affected annuitant status correctly and in a timely manner, | 23 | | or has failed to notify the System or to correctly document or | 24 | | certify to the System any of the information required by this | 25 | | Section, and that failure results in a delayed determination by | 26 | | the System that a contribution is payable under this Section, |
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| 1 | | then the amount of that employer's contribution otherwise | 2 | | determined under this Section shall be doubled. | 3 | | The System shall deem a failure to correctly determine the | 4 | | annuitant's status to be justified if the employer establishes | 5 | | to the System's satisfaction that the employer, after due | 6 | | diligence, made an erroneous determination that the annuitant | 7 | | was not an affected annuitant due to reasonable reliance on | 8 | | false or misleading information provided by the annuitant or | 9 | | another employer, or an error in the annuitant's official | 10 | | employment or earnings records. | 11 | | (f) Whenever the System determines that an employer is | 12 | | liable for a contribution under this Section, it shall so | 13 | | notify the employer and certify the amount of the contribution. | 14 | | The employer may pay the required contribution without interest | 15 | | at any time within one year after receipt of the certification. | 16 | | If the employer fails to pay within that year, then interest | 17 | | shall be charged at a rate equal to the System's prescribed | 18 | | rate of interest, compounded annually from the 366th day after | 19 | | receipt of the certification from the System. Payment must be | 20 | | concluded within 2 years after receipt of the certification by | 21 | | the employer. If the employer fails to make complete payment, | 22 | | including applicable interest, within 2 years, then the System | 23 | | may, after giving notice to the employer, certify the | 24 | | delinquent amount to the State Comptroller, and the Comptroller | 25 | | shall thereupon deduct the certified delinquent amount from | 26 | | State funds payable to the employer and pay them instead to the |
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| 1 | | System. | 2 | | (g) If an employer is required to make a contribution to | 3 | | the System as a result of employing an affected annuitant and | 4 | | the annuitant later elects to forgo his or her annuity in that | 5 | | same academic year pursuant to subsection (c) of Section | 6 | | 15-139, then the required contribution by the employer shall be | 7 | | waived, and if the contribution has already been paid, it shall | 8 | | be refunded to the employer without interest. | 9 | | (h) Notwithstanding any other provision of this Article, | 10 | | the employer contribution required under this Section shall not | 11 | | be included in the determination of any benefit under this | 12 | | Article or any other Article of this Code, regardless of | 13 | | whether the annuitant returns to active service, and is in | 14 | | addition to any other State or employer contribution required | 15 | | under this Article. | 16 | | (i) Notwithstanding any other provision of this Section to | 17 | | the contrary, if an employer employs an affected annuitant in | 18 | | order to continue critical operations in the event of either an | 19 | | employee's unforeseen illness, accident, or death or a | 20 | | catastrophic incident or disaster, then, for one and only one | 21 | | academic year, the employer is not required to pay the | 22 | | contribution set forth in this Section for that annuitant. The | 23 | | employer shall, however, immediately notify the System upon | 24 | | employing a person subject to this subsection (i). For the | 25 | | purposes of this subsection (i), "critical operations" means | 26 | | teaching services, medical services, student welfare services, |
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| 1 | | and any other services that are critical to the mission of the | 2 | | employer.
| 3 | | (j) This Section shall be applied and coordinated with the | 4 | | regulatory obligations contained in the State Universities | 5 | | Civil Service Act. This Section shall not apply to an annuitant | 6 | | if the employer of that annuitant provides documentation to the | 7 | | System that (1) the annuitant is employed in a status | 8 | | appointment position, as that term is defined in 80 Ill. Adm. | 9 | | Code 250.80, and (2) due to obligations contained under the | 10 | | State Universities Civil Service Act, the employer does not | 11 | | have the ability to limit the earnings or duration of | 12 | | employment for the annuitant while employed in the status | 13 | | appointment position. | 14 | | (Source: P.A. 97-968, eff. 8-16-12.)
| 15 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 16 | | Sec. 15-155. State and employer Employer contributions.
| 17 | | (a) The State of Illinois shall make contributions by | 18 | | appropriations of
amounts which, together with contributions | 19 | | paid by employers, the other employer contributions from trust,
| 20 | | federal, and other funds, employee contributions, income from | 21 | | investments,
and other income of this System, will be | 22 | | sufficient to meet the cost of
maintaining and administering | 23 | | the System on a 90% funded basis in accordance
with actuarial | 24 | | recommendations.
| 25 | | The Board shall determine the amount of State and employer |
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| 1 | | contributions required for
each fiscal year on the basis of the | 2 | | actuarial tables and other assumptions
adopted by the Board and | 3 | | the recommendations of the System's actuary, using the formulas | 4 | | provided in this Section formula
in subsection (a-1) .
| 5 | | The System shall make all necessary assumptions to | 6 | | determine and allocate total demographic gains and losses for | 7 | | the purpose of determining State and employer contributions | 8 | | under this Section. Such assumptions shall include but not be | 9 | | limited to the rates of retirement, termination, disability, | 10 | | and mortality. | 11 | | (a-1) For State fiscal years 2012 through 2014 through | 12 | | 2045 , the minimum contribution
to the System to be made by the | 13 | | State for each fiscal year shall be an amount
determined by the | 14 | | System to be sufficient to bring the total assets of the
System | 15 | | up to 90% of the total actuarial liabilities of the System by | 16 | | the end of
State fiscal year 2045. In making these | 17 | | determinations, the required State
contribution shall be | 18 | | calculated each year as a level percentage of payroll
over the | 19 | | years remaining to and including fiscal year 2045 and shall be
| 20 | | determined under the projected unit credit actuarial cost | 21 | | method.
| 22 | | For State fiscal years 2015 through 2044, the minimum | 23 | | contribution
to the System to be made by the State for each | 24 | | fiscal year shall be an amount
determined by the System to be | 25 | | sufficient to bring the total actuarial assets of the
System | 26 | | attributable to the State up to 100% of the total actuarial |
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| 1 | | liabilities of the System attributable to the State by the end | 2 | | of
State fiscal year 2044. In making these determinations, the | 3 | | required State
contribution shall be calculated each year as a | 4 | | level percentage of payroll
over the years remaining to and | 5 | | including fiscal year 2044 and shall be
determined under the | 6 | | entry age normal actuarial cost method. | 7 | | If at the end of State fiscal year 2044 the total actuarial | 8 | | assets of the
System attributable to the State are less than | 9 | | 100% of the total actuarial liabilities of the System | 10 | | attributable to the State, the System shall determine the | 11 | | amount necessary to bring that those assets up to 100% of those | 12 | | liabilities and shall certify that amount as a required State | 13 | | contribution for State fiscal year 2046, and the State shall | 14 | | pay that amount to the System in State fiscal year 2046. | 15 | | Beginning when the State has paid the contribution required | 16 | | under this subsection (a-1) for fiscal year 2046, or in State | 17 | | fiscal year 2045 if no such contribution for fiscal year 2046 | 18 | | is required, the State has no further obligation to make | 19 | | contributions to the System under this subsection (a-1). | 20 | | For the purposes of this Article, "total actuarial | 21 | | liabilities of the System attributable to the State" means the | 22 | | total liabilities of the System less any notional liabilities | 23 | | assigned to employer accounts under Section 15-155.2. | 24 | | For the purposes of this Article, "total actuarial assets | 25 | | of the System attributable to the State" means the total assets | 26 | | of the System less any notional assets assigned to employer |
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| 1 | | accounts under Section 15-155.2. | 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 | | $166,641,900.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution for State fiscal year 2007 is | 12 | | $252,064,100.
| 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 | | $702,514,000 and shall be made from the State Pensions Fund and | 22 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 23 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 24 | | share of bond sale expenses determined by the System's share of | 25 | | total bond proceeds, (ii) any amounts received from the General | 26 | | Revenue Fund in fiscal year 2010, (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 15-165 and shall be made from the State | 7 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 8 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 9 | | less (i) the pro rata
share of bond sale expenses determined by | 10 | | the System's share of
total bond proceeds, (ii) any amounts | 11 | | received from the General
Revenue Fund in fiscal year 2011, and | 12 | | (iii) any reduction in bond
proceeds due to the issuance of | 13 | | discounted bonds, if
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 90% of the total | 17 | | 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 90%. A reference in this Article to |
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| 1 | | the "required State contribution" or any substantially similar | 2 | | term does not include or apply to any amounts payable to the | 3 | | System under Section 25 of the Budget Stabilization Act. | 4 | | Notwithstanding any other provision of this Section, the | 5 | | required State
contribution for State fiscal year 2005 and for | 6 | | fiscal year 2008 through and each fiscal year 2014 thereafter , | 7 | | as
calculated under this Section and
certified under Section | 8 | | 15-165, shall not exceed an amount equal to (i) the
amount of | 9 | | the required State contribution that would have been calculated | 10 | | under
this Section for that fiscal year if the System had not | 11 | | received any payments
under subsection (d) of Section 7.2 of | 12 | | the General Obligation Bond Act, minus
(ii) the portion of the | 13 | | State's total debt service payments for that fiscal
year on the | 14 | | bonds issued in fiscal year 2003 for the purposes of that | 15 | | Section 7.2, as determined
and certified by the Comptroller, | 16 | | that is the same as the System's portion of
the total moneys | 17 | | distributed under subsection (d) of Section 7.2 of the General
| 18 | | Obligation Bond Act. In determining this maximum for State | 19 | | fiscal years 2008 through 2010, however, the amount referred to | 20 | | in item (i) shall be increased, as a percentage of the | 21 | | applicable employee payroll, in equal increments calculated | 22 | | from the sum of the required State contribution for State | 23 | | fiscal year 2007 plus the applicable portion of the State's | 24 | | total debt service payments for fiscal year 2007 on the bonds | 25 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 26 | | the General
Obligation Bond Act, so that, by State fiscal year |
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| 1 | | 2011, the
State is contributing at the rate otherwise required | 2 | | under this Section.
| 3 | | (a-5) In addition to the contributions that the State is | 4 | | otherwise required to make under this Article, beginning in | 5 | | fiscal year 2015 and in each fiscal year thereafter until the | 6 | | State has no further obligation to make contributions to the | 7 | | System under subsection (a-1), the State shall be required to | 8 | | make an additional contribution to the System equal to the | 9 | | projected dollar amount of contributions to be made by | 10 | | employers pursuant to items (i) and (vi) of subsection (a-10) | 11 | | for that fiscal year. Contributions required to be made | 12 | | pursuant to this subsection do not reduce and do not constitute | 13 | | payment of any portion of the required State contribution made | 14 | | to the System pursuant to subsection (a-1) in that fiscal year. | 15 | | A contribution required to be made pursuant to this subsection | 16 | | shall not reduce, and shall not be included in the calculation | 17 | | of, the required contribution to be made by the State pursuant | 18 | | to subsection (a-1) in any future year, until the System has | 19 | | received the contribution pursuant to this subsection. | 20 | | (a-10) Subject to the limitations provided in subsection | 21 | | (a-15) of this Section, beginning with State fiscal year 2015, | 22 | | each employer under this Article shall pay to the System a | 23 | | required contribution determined as a percentage of projected | 24 | | payroll and sufficient to produce an annual amount equal to: | 25 | | (i) the employer normal cost for that fiscal year for | 26 | | participating employees of that employer (excluding costs |
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| 1 | | attributable to any new benefit increases approved by that | 2 | | employer pursuant to Section 15-198), determined as a | 3 | | percentage of applicable payroll; plus | 4 | | (ii) the amount required for that fiscal year to | 5 | | amortize any unfunded actuarial accrued liability | 6 | | associated with the present value of liabilities | 7 | | attributable to the employer's account under Section | 8 | | 15-155.2 (excluding costs attributable to any new benefit | 9 | | increases approved by that employer pursuant to Section | 10 | | 15-198), determined
as a level percentage of payroll over a | 11 | | 30-year rolling amortization period; plus | 12 | | (iii) that employer's normal cost for that fiscal year | 13 | | attributable to all new benefit increases approved by that | 14 | | employer pursuant to Section 15-198; plus | 15 | | (iv) the amounts required for that fiscal year to | 16 | | amortize any unfunded actuarial accrued liability | 17 | | associated with the present value of each new benefit | 18 | | increase approved by that employer pursuant to Section | 19 | | 15-198, determined as a level percentage of payroll over a | 20 | | fixed 10-year amortization period; plus | 21 | | (v) beginning when the State has no further obligation | 22 | | to make contributions to the System under subsection (a-1), | 23 | | the amount required for that fiscal year to amortize any | 24 | | unfunded actuarial accrued liability of the System not | 25 | | attributable to any employer's account under Section | 26 | | 15-155.2, determined
as a level percentage of payroll over |
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| 1 | | a 30-year rolling amortization period; plus | 2 | | (vi) the amount of employer contributions for that | 3 | | fiscal year required for employees of that employer who | 4 | | participate in the self-managed plan under Section | 5 | | 15-158.2. | 6 | | In determining contributions required under item (i) of | 7 | | this subsection, the System shall determine an aggregate rate | 8 | | for all employers, expressed as a percentage of projected | 9 | | payroll, exclusive of costs attributable to any new benefit | 10 | | increase approved pursuant to Section 15-198 and exclusive of | 11 | | employer contributions required for participating employees of | 12 | | the self-managed plan under Section 15-158.2. | 13 | | In determining contributions required under item (ii) of | 14 | | this subsection, the System shall determine an individual rate | 15 | | determined as a percentage of projected payroll applicable to | 16 | | each employer based on that employer's individual account under | 17 | | Section 15-155.2, exclusive of (i) any liabilities | 18 | | attributable to the System as a whole rather than to the | 19 | | employer's account and (ii) costs attributable to any new | 20 | | benefit increase approved pursuant to Section 15-198. | 21 | | In determining contributions required under items (iii) | 22 | | and (iv) of this subsection, the System shall determine an | 23 | | individual rate determined as a percentage of projected payroll | 24 | | applicable to each employer that approves a new benefit | 25 | | increase pursuant to Section 15-198. | 26 | | In determining contributions required under item (v) of |
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| 1 | | this subsection, the System shall determine an aggregate rate | 2 | | determined as a percentage of projected payroll applicable to | 3 | | all employers under the System. | 4 | | The contributions required under this subsection (a-10) | 5 | | shall be paid by an employer concurrently with that employer's | 6 | | payroll payment period. | 7 | | (a-15) For State fiscal year 2015, the required | 8 | | contribution of employers under item (i) of subsection (a-10) | 9 | | shall be reduced to an amount equal to 0.5% of applicable | 10 | | payroll. For each fiscal year thereafter, the required | 11 | | contribution of employers under item (i) of subsection (a-10) | 12 | | shall be the percentage of projected payroll required under | 13 | | this subsection (a-15) for the previous fiscal year, increased | 14 | | by 0.5% of payroll, except that when the percentage of | 15 | | projected payroll required under this subsection (a-15) first | 16 | | reaches the percentage of payroll required under item (i) of | 17 | | subsection (a-10), this subsection (a-15) shall cease to apply. | 18 | | For State fiscal year 2015, the required contribution of | 19 | | employers under item (vi) of subsection (a-10) shall be reduced | 20 | | to an amount equal to 0.5% of applicable payroll. For each | 21 | | fiscal year thereafter, the required contribution of employers | 22 | | under item (vi) of subsection (a-10) shall be the percentage of | 23 | | projected payroll required under this subsection (a-15) for the | 24 | | previous fiscal year, increased by 0.5% of payroll, except that | 25 | | when the percentage of payroll required under this subsection | 26 | | (a-15) first reaches the percentage of payroll required under |
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| 1 | | item (vi) of subsection (a-10), this subsection (a-15) shall | 2 | | cease to apply. | 3 | | The limitations in this subsection (a-15) do not apply to | 4 | | (i) employer contributions required to be made under subsection | 5 | | (b) of this Section for employees who are compensated out of | 6 | | trust or federal funds, (ii) contributions required to be made | 7 | | by the City of Champaign or the City of Urbana for individuals | 8 | | described under subsection (h) of Section 15-107, (iii) | 9 | | contributions required to be made by a teacher organization for | 10 | | individuals described under subsection (i) of Section 15-107, | 11 | | or (iv) contributions required to be made by a teacher | 12 | | organization for individuals on special leave of absence under | 13 | | Section 15-113.2. | 14 | | (b) If an employee is paid from trust or federal funds, the | 15 | | employer
shall pay to the Board contributions from those funds | 16 | | which are
sufficient to cover the accruing normal costs on | 17 | | behalf of the employee.
However, universities having employees | 18 | | who are compensated out of local
auxiliary funds, income funds, | 19 | | or service enterprise funds are not required
to pay such | 20 | | contributions on behalf of those employees prior to July 1, | 21 | | 2014 . Beginning July 1, 2014, universities having employees who | 22 | | are compensated out of local auxiliary funds, income funds, or | 23 | | service enterprise funds shall pay to the Board contributions | 24 | | from those funds that are sufficient to cover the accruing | 25 | | normal costs on behalf of those employees. The local auxiliary
| 26 | | funds, income funds, and service enterprise funds of |
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| 1 | | universities shall not be
considered trust funds for the | 2 | | purpose of this Article, but funds of alumni
associations, | 3 | | foundations, and athletic associations which are affiliated | 4 | | with
the universities included as employers under this Article | 5 | | and other employers
which do not receive State appropriations | 6 | | are considered to be trust funds for
the purpose of this | 7 | | Article.
| 8 | | (b-1) The City of Urbana and the City of Champaign shall | 9 | | each make
employer contributions to this System for their | 10 | | respective firefighter
employees who participate in this | 11 | | System pursuant to subsection (h) of Section
15-107. The rate | 12 | | of contributions to be made by those municipalities shall
be | 13 | | determined annually by the Board on the basis of the actuarial | 14 | | assumptions
adopted by the Board and the recommendations of the | 15 | | actuary, and shall be
expressed as a percentage of salary for | 16 | | each such employee. The Board shall
certify the rate to the | 17 | | affected municipalities as soon as may be practical.
The | 18 | | employer contributions required under this subsection shall be | 19 | | remitted by
the municipality to the System at the same time and | 20 | | in the same manner as
employee contributions.
| 21 | | (c) Through State fiscal year 1995: The total employer | 22 | | contribution shall
be apportioned among the various funds of | 23 | | the State and other employers,
whether trust, federal, or other | 24 | | funds, in accordance with actuarial procedures
approved by the | 25 | | Board. State of Illinois contributions for employers receiving
| 26 | | State appropriations for personal services shall be payable |
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| 1 | | from appropriations
made to the employers or to the System. The | 2 | | contributions for Class I
community colleges covering earnings | 3 | | other than those paid from trust and
federal funds, shall be | 4 | | payable solely from appropriations to the Illinois
Community | 5 | | College Board or the System for employer contributions.
| 6 | | (d) Beginning in State fiscal year 1996, the required State | 7 | | contributions
to the System shall be appropriated directly to | 8 | | the System and shall be payable
through vouchers issued in | 9 | | accordance with subsection (c) of Section 15-165, except as | 10 | | provided in subsection (g).
| 11 | | (e) The State Comptroller shall draw warrants payable to | 12 | | the System upon
proper certification by the System or by the | 13 | | employer in accordance with the
appropriation laws and this | 14 | | Code.
| 15 | | (f) Normal costs under this Section means liability for
| 16 | | pensions and other benefits which accrues to the System because | 17 | | of the
credits earned for service rendered by the participants | 18 | | during the
fiscal year and expenses of administering the | 19 | | System, but shall not
include the principal of or any | 20 | | redemption premium or interest on any bonds
issued by the Board | 21 | | or any expenses incurred or deposits required in
connection | 22 | | therewith.
| 23 | | (g) If the amount of a participant's earnings for any | 24 | | academic year used to determine the final rate of earnings, | 25 | | determined on a full-time equivalent basis, exceeds the amount | 26 | | of his or her earnings with the same employer for the previous |
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| 1 | | academic year, determined on a full-time equivalent basis, by | 2 | | more than 6%, the participant's employer shall pay to the | 3 | | System, in addition to all other payments required under this | 4 | | Section and in accordance with guidelines established by the | 5 | | System, the present value of the increase in benefits resulting | 6 | | from the portion of the increase in earnings that is in excess | 7 | | of 6%. This present value shall be computed by the System on | 8 | | the basis of the actuarial assumptions and tables used in the | 9 | | most recent actuarial valuation of the System that is available | 10 | | at the time of the computation. The System may require the | 11 | | employer to provide any pertinent information or | 12 | | documentation. | 13 | | Whenever it determines that a payment is or may be required | 14 | | under this subsection (g), the System shall calculate the | 15 | | amount of the payment and bill the employer for that amount. | 16 | | The bill shall specify the calculations used to determine the | 17 | | amount due. If the employer disputes the amount of the bill, it | 18 | | may, within 30 days after receipt of the bill, apply to the | 19 | | System in writing for a recalculation. The application must | 20 | | specify in detail the grounds of the dispute and, if the | 21 | | employer asserts that the calculation is subject to subsection | 22 | | (h) or (i) of this Section, must include an affidavit setting | 23 | | forth and attesting to all facts within the employer's | 24 | | knowledge that are pertinent to the applicability of subsection | 25 | | (h) or (i). Upon receiving a timely application for | 26 | | recalculation, the System shall review the application and, if |
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| 1 | | appropriate, recalculate the amount due.
| 2 | | The employer contributions required under this subsection | 3 | | (g) (f) may be paid in the form of a lump sum within 90 days | 4 | | after receipt of the bill. If the employer contributions are | 5 | | not paid within 90 days after receipt of the bill, then | 6 | | interest will be charged at a rate equal to the System's annual | 7 | | actuarially assumed rate of return on investment compounded | 8 | | annually from the 91st day after receipt of the bill. Payments | 9 | | must be concluded within 3 years after the employer's receipt | 10 | | of the bill. | 11 | | (h) This subsection (h) applies only to (1) payments made | 12 | | or salary increases given on or after June 1, 2005 but before | 13 | | July 1, 2011 and (2) payments made or salary increases given | 14 | | after the limitation on employer contributions under | 15 | | subsection (a-15) of Section 15-155 ceases to apply to | 16 | | contributions under item (i) of subsection (a-10) of that | 17 | | Section . The changes made by Public Act 94-1057 shall not | 18 | | require the System to refund any payments received before July | 19 | | 31, 2006 (the effective date of Public Act 94-1057). | 20 | | When assessing payment for any amount due under subsection | 21 | | (g), the System shall exclude earnings increases paid to | 22 | | participants under contracts or collective bargaining | 23 | | agreements entered into, amended, or renewed before June 1, | 24 | | 2005.
| 25 | | When assessing payment for any amount due under subsection | 26 | | (g), the System shall exclude earnings increases paid to a |
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| 1 | | participant at a time when the participant is 10 or more years | 2 | | from retirement eligibility under Section 15-135.
| 3 | | When assessing payment for any amount due under subsection | 4 | | (g), the System shall exclude earnings increases resulting from | 5 | | overload work, including a contract for summer teaching, or | 6 | | overtime when the employer has certified to the System, and the | 7 | | System has approved the certification, that: (i) in the case of | 8 | | overloads (A) the overload work is for the sole purpose of | 9 | | academic instruction in excess of the standard number of | 10 | | instruction hours for a full-time employee occurring during the | 11 | | academic year that the overload is paid and (B) the earnings | 12 | | increases are equal to or less than the rate of pay for | 13 | | academic instruction computed using the participant's current | 14 | | salary rate and work schedule; and (ii) in the case of | 15 | | overtime, the overtime was necessary for the educational | 16 | | mission. | 17 | | When assessing payment for any amount due under subsection | 18 | | (g), the System shall exclude any earnings increase resulting | 19 | | from (i) a promotion for which the employee moves from one | 20 | | classification to a higher classification under the State | 21 | | Universities Civil Service System, (ii) a promotion in academic | 22 | | rank for a tenured or tenure-track faculty position, or (iii) a | 23 | | promotion that the Illinois Community College Board has | 24 | | recommended in accordance with subsection (k) of this Section. | 25 | | These earnings increases shall be excluded only if the | 26 | | promotion is to a position that has existed and been filled by |
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| 1 | | a member for no less than one complete academic year and the | 2 | | earnings increase as a result of the promotion is an increase | 3 | | that results in an amount no greater than the average salary | 4 | | paid for other similar positions. | 5 | | (i) When assessing payment for any amount due under | 6 | | subsection (g), the System shall exclude any salary increase | 7 | | described in subsection (h) of this Section given on or after | 8 | | July 1, 2011 but before July 1, 2014 under a contract or | 9 | | collective bargaining agreement entered into, amended, or | 10 | | renewed on or after June 1, 2005 but before July 1, 2011. | 11 | | Notwithstanding any other provision of this Section, any | 12 | | payments made or salary increases given after June 30, 2014 | 13 | | shall be used in assessing payment for any amount due under | 14 | | subsection (g) of this Section.
| 15 | | (j) The System shall prepare a report and file copies of | 16 | | the report with the Governor and the General Assembly by | 17 | | January 1, 2007 that contains all of the following information: | 18 | | (1) The number of recalculations required by the | 19 | | changes made to this Section by Public Act 94-1057 for each | 20 | | employer. | 21 | | (2) The dollar amount by which each employer's | 22 | | contribution to the System was changed due to | 23 | | recalculations required by Public Act 94-1057. | 24 | | (3) The total amount the System received from each | 25 | | employer as a result of the changes made to this Section by | 26 | | Public Act 94-4. |
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| 1 | | (4) The increase in the required State contribution | 2 | | resulting from the changes made to this Section by Public | 3 | | Act 94-1057. | 4 | | (k) The Illinois Community College Board shall adopt rules | 5 | | for recommending lists of promotional positions submitted to | 6 | | the Board by community colleges and for reviewing the | 7 | | promotional lists on an annual basis. When recommending | 8 | | promotional lists, the Board shall consider the similarity of | 9 | | the positions submitted to those positions recognized for State | 10 | | universities by the State Universities Civil Service System. | 11 | | The Illinois Community College Board shall file a copy of its | 12 | | findings with the System. The System shall consider the | 13 | | findings of the Illinois Community College Board when making | 14 | | determinations under this Section. The System shall not exclude | 15 | | any earnings increases resulting from a promotion when the | 16 | | promotion was not submitted by a community college. Nothing in | 17 | | this subsection (k) shall require any community college to | 18 | | submit any information to the Community College Board.
| 19 | | (l) For purposes of determining the required State | 20 | | contribution to the System, the value of the System's assets | 21 | | shall be equal to the actuarial value of the System's assets, | 22 | | which shall be calculated as follows: | 23 | | As of June 30, 2008, the actuarial value of the System's | 24 | | assets shall be equal to the market value of the assets as of | 25 | | that date. In determining the actuarial value of the System's | 26 | | assets for fiscal years after June 30, 2008, any actuarial |
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| 1 | | gains or losses from investment return incurred in a fiscal | 2 | | year shall be recognized in equal annual amounts over the | 3 | | 5-year period following that fiscal year. | 4 | | (m) For purposes of determining the required State | 5 | | contribution to the system for a particular year, the actuarial | 6 | | value of assets shall be assumed to earn a rate of return equal | 7 | | to the system's actuarially assumed rate of return. | 8 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 9 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 10 | | 7-13-12; revised 10-17-12.)
| 11 | | (40 ILCS 5/15-155.1 new) | 12 | | Sec. 15-155.1. Actions to enforce payment by employers. | 13 | | (a) If any employer fails to transmit to the System | 14 | | contributions required of it
under this Article in the manner | 15 | | prescribed under subsection (a-10) of Section 15-155 or | 16 | | contributions collected by it from its participating
employees | 17 | | for the purposes of this Article for more than
90 days after | 18 | | the payment of such contributions is due, then the System, | 19 | | after
giving notice to that employer, may certify to
the State | 20 | | Comptroller the amounts of the delinquent payments, and the
| 21 | | Comptroller shall deduct the amounts so certified or any part | 22 | | thereof
from any payments or grants of State funds to the | 23 | | employer and shall pay the amounts so deducted to the System. | 24 | | If State
funds from which such deductions may be made are not | 25 | | available, the System
may proceed against the employer to |
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| 1 | | recover the
amounts of the delinquent payments in the circuit | 2 | | court of Champaign County. | 3 | | (b) If any employer fails to transmit to the System
| 4 | | contributions required of it under this Article or | 5 | | contributions collected
by it from its participating employees | 6 | | for the purposes of this Article for
more than 90 days after | 7 | | the payment of the contributions is due, the System,
after | 8 | | giving notice to the employer, may certify the amounts of the | 9 | | delinquent payments to the county treasurer of any county in | 10 | | which the employer is located, who shall deduct the amounts so | 11 | | certified or any part thereof
from the amounts collected
from | 12 | | any tax levied by the employer and shall pay the amount so | 13 | | deducted to the System. | 14 | | (c) If reports furnished to the System by the employer | 15 | | involved are inadequate for the computation of the
amounts of | 16 | | any payments, the System may provide for such audit
of the | 17 | | records of the employer as may be required
to establish the | 18 | | amounts of the delinquent payments. The employer shall make its | 19 | | records available to the System for the
purpose of the audit. | 20 | | The cost of the audit shall be added to the
amount of the | 21 | | payments and shall be recovered by the System
from the employer | 22 | | at the same time and in the
same manner as the payments are | 23 | | recovered. | 24 | | (d) This Section does not apply to the State as an employer | 25 | | under this Article. |
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| 1 | | (40 ILCS 5/15-155.2 new) | 2 | | Sec. 15-155.2. Individual employer accounts. | 3 | | (a) The System shall create and maintain an individual | 4 | | account for each employer for the purposes of determining | 5 | | employer contributions under subsection (a-10) of Section | 6 | | 15-155. Each employer's account shall be notionally charged | 7 | | with the liabilities attributable to that employer and credited | 8 | | with the assets attributable to that employer. | 9 | | (b) Beginning in fiscal year 2015, the System shall assign | 10 | | notional liabilities to each employer's account, equal to: | 11 | | (1) an amount equal to employer contributions required | 12 | | to be made by the employer pursuant to: | 13 | | (i) items (i) and (iii) of subsection (a-10) of | 14 | | Section 15-155; | 15 | | (ii) any unfunded actuarial accrued liability | 16 | | associated with each new benefit increase approved by | 17 | | that employer pursuant to Section 15-198; and | 18 | | (iii) subsection (g) of Section 15-155; | 19 | | (2) the amount of employee contributions paid by | 20 | | participating employees of the employer, except that | 21 | | during any fiscal year in which the employer contribution | 22 | | under item (i) of subsection (a-10) of Section 15-155 is | 23 | | reduced under subsection (a-15) of that Section, the amount | 24 | | of employee contributions credited under this subsection | 25 | | (b) shall be reduced by the same proportion; plus | 26 | | (3) any amounts representing employer or employee |
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| 1 | | contributions transferred or paid to the System in order to | 2 | | transfer or establish service credit for a participating | 3 | | employee of the employer as determined by the System. | 4 | | The amount of any employer contributions required to be | 5 | | made under Section 15-139.5 is not chargeable to the employer's | 6 | | account. | 7 | | (c) Beginning in fiscal year 2015, the System shall assign | 8 | | notional assets to each employer's account equal to: | 9 | | (1) the amounts of employer contributions made | 10 | | pursuant to items (i), (ii), (iii), and (iv) of subsection | 11 | | (a-10) of Section 15-155 and the amount of employer | 12 | | contributions made pursuant to subsection (g) of Section | 13 | | 15-155; plus | 14 | | (2) the amount of employee contributions paid by | 15 | | participating employees of the employer, except that | 16 | | during any fiscal year in which the employer contribution | 17 | | under item (i) of subsection (a-10) of Section 15-155 is | 18 | | reduced under subsection (a-15) of that Section, the amount | 19 | | of employee contributions credited under this subsection | 20 | | (c) shall be reduced by the same proportion; plus | 21 | | (3) any amounts representing employer or employee | 22 | | contributions transferred or paid to the System in order to | 23 | | transfer or establish service credit for a participating | 24 | | employee of the employer as determined by the System. | 25 | | The amount of any employer contributions required to be | 26 | | made under Section 15-139.5 is not creditable to the employer's |
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| 1 | | account. | 2 | | (d) On an annual basis and calculated with assumptions and | 3 | | tables developed by the System, the System shall deduct from | 4 | | each employer's account an actuarially determined amount equal | 5 | | to the employer's portion of the benefits paid to that | 6 | | employer's annuitant population. The System shall make such | 7 | | determinations based on the portion of benefit payments that | 8 | | are attributed to the employer's liabilities assigned under | 9 | | subsection (b) of this Section. The System shall make the | 10 | | assumptions required to determine and allocate benefit | 11 | | payments to the State's portion of total liabilities and to the | 12 | | employer's portion of total liabilities. | 13 | | (e) The System shall report to the General Assembly and the | 14 | | Governor prior to January 1, 2014 any liability of an employer | 15 | | anticipated to accrue after July 1, 2014 that is not assigned | 16 | | to an employer account pursuant to this Section.
| 17 | | (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
| 18 | | Sec. 15-159. Board created. | 19 | | (a) A board of trustees constituted as provided in
this | 20 | | Section shall administer this System. The board shall be known | 21 | | as the
Board of Trustees of the State Universities Retirement | 22 | | System.
| 23 | | (b) When all of the changes to this Section made by this | 24 | | amendatory Act of the 98th General Assembly have been | 25 | | implemented, the Board will consist of 12 members as follows: 4 |
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| 1 | | elected members who are active participants, 2 elected members | 2 | | who are annuitants, 3 members elected by the trustees of | 3 | | Illinois public universities, and 3 members elected by the | 4 | | trustees of Illinois community colleges. The elected members | 5 | | will be evenly split between persons representing public | 6 | | universities and persons representing community colleges. The | 7 | | Chairperson of the Board of Higher Education will no longer be | 8 | | a member, and the Governor will no longer appoint any members. | 9 | | The members of the Board will choose one of the members to | 10 | | serve as chairperson. Until July 1, 1995, the Board of Trustees | 11 | | shall be constituted
as follows:
| 12 | | Two trustees shall be members of the Board of Trustees of | 13 | | the
University of Illinois, one shall be a member of
the Board | 14 | | of Trustees of Southern Illinois University, one shall be a | 15 | | member
of the Board of Trustees of Chicago State University, | 16 | | one shall be a member of
the Board of Trustees of Eastern | 17 | | Illinois University, one shall be a member of
the Board of | 18 | | Trustees of Governors State University, one shall be a member | 19 | | of
the Board of Trustees of Illinois State University, one | 20 | | shall be a member of
the Board of Trustees of Northeastern | 21 | | Illinois University, one shall be a
member of the Board of | 22 | | Trustees of Northern Illinois University, one shall be a
member | 23 | | of the Board of Trustees of Western Illinois University, and | 24 | | one shall
be a member of the Illinois Community College Board, | 25 | | selected in each case by
their respective boards, and 2 shall
| 26 | | be participants of the system appointed by the Governor for a 6 |
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| 1 | | year term with
the first appointment made pursuant to this | 2 | | amendatory Act of 1984 to be
effective September 1, 1985, and | 3 | | one shall be a participant appointed by the
Illinois Community | 4 | | College Board for a 6 year term, and one shall be a
participant | 5 | | appointed by the Board of Trustees of the University of | 6 | | Illinois
for a 6 year term, and one shall be a participant or | 7 | | annuitant of the system
who is a senior citizen age 60 or older | 8 | | appointed by the Governor for a 6 year
term with the first | 9 | | appointment to be effective September 1, 1985.
| 10 | | The terms of all trustees holding office under this | 11 | | subsection (b) on
June 30, 1995 shall terminate at the end of | 12 | | that day and the Board shall
thereafter be constituted as | 13 | | provided in subsection (c).
| 14 | | (c) (Blank). Beginning July 1, 1995, the Board of Trustees | 15 | | shall be
constituted as follows:
| 16 | | The Board shall consist of 9 trustees appointed by the | 17 | | Governor. Two of the
trustees, designated at the time of | 18 | | appointment, shall be participants of the
System. Two of the | 19 | | trustees, designated at the time of appointment, shall be
| 20 | | annuitants of the System who are receiving retirement annuities | 21 | | under this
Article. The 5 remaining trustees may, but need not, | 22 | | be participants or
annuitants of the System.
| 23 | | The term of office of trustees appointed under this | 24 | | subsection (c)
shall be 6 years, beginning on July 1. However, | 25 | | of the initial trustees
appointed under this subsection (c), 3 | 26 | | shall be appointed for terms of 2 years,
3 shall be appointed |
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| 1 | | for terms of 4 years, and 3 shall be appointed for terms
of 6 | 2 | | years, to be designated by the Governor at the time of | 3 | | appointment.
| 4 | | The terms of all trustees holding office under this | 5 | | subsection (c) on the effective date of this amendatory Act of | 6 | | the 96th General Assembly shall terminate on that effective | 7 | | date. The Governor shall make nominations for appointment under | 8 | | this Section within 60 days after the effective date of this | 9 | | amendatory Act of the 96th General Assembly. A trustee sitting | 10 | | on the board on the effective date of this amendatory Act of | 11 | | the 96th General Assembly may not hold over in office for more | 12 | | than 90 days after the effective date of this amendatory Act of | 13 | | the 96th General Assembly. Nothing in this Section shall | 14 | | prevent the Governor from making a temporary appointment or | 15 | | nominating a trustee holding office on the day before the | 16 | | effective date of this amendatory Act of the 96th General | 17 | | Assembly. | 18 | | (d) Beginning on the 90th day after April 3, 2009 ( the | 19 | | effective date of Public Act 96-6) this amendatory Act of the | 20 | | 96th General Assembly , the Board of Trustees shall be | 21 | | constituted as follows: | 22 | | (1) The Chairperson of the Board of Higher Education, | 23 | | who shall act as chairperson of this Board ; except that the | 24 | | Chairperson of the Board of Higher Education shall be a | 25 | | member of the Board only through June 30, 2014 . | 26 | | (2) Four trustees appointed by the Governor with the |
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| 1 | | advice and consent of the Senate who may not be members of | 2 | | the system or hold an elective State office and who shall | 3 | | serve for a term of 6 years, except that the terms of the | 4 | | initial appointees under this subsection (d) shall be as | 5 | | follows: 2 for a term of 3 years and 2 for a term of 6 | 6 | | years. However, no additional appointment may be made by | 7 | | the Governor under this item (2), and no vacancy may be | 8 | | filled by the Governor, after the effective date of this | 9 | | amendatory Act of the 98th General Assembly. | 10 | | (3) Four active participants of the system to be | 11 | | elected from the contributing membership of the system by | 12 | | the
contributing members, no more than 2 of which may be | 13 | | from any of the University of Illinois campuses, who shall | 14 | | serve for a term of 6 years, except that the terms of the | 15 | | initial electees shall be as follows: 2 for a term of 3 | 16 | | years and 2 for a term of 6 years. However, beginning with | 17 | | the election of active participants next occurring after | 18 | | the effective date of this amendatory Act of the 98th | 19 | | General Assembly, (i) 2 of these members shall be active | 20 | | employees of a community college employer and (ii) 2 of | 21 | | these members shall be active employees of a public | 22 | | university employer, no more than one of whom may be from | 23 | | any of the University of Illinois campuses. | 24 | | (4) Two annuitants of
the system who have been | 25 | | annuitants for at least one full year, to be
elected from | 26 | | and by the annuitants of the system, no more than one of |
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| 1 | | which may be from any of the University of Illinois | 2 | | campuses, who shall serve for a term of 6 years, except | 3 | | that the terms of the initial electees shall be as follows: | 4 | | one for a term of 3 years and one for a term of 6 years. | 5 | | However, beginning with the election of annuitant members | 6 | | next occurring after the effective date of this amendatory | 7 | | Act of the 98th General Assembly, (i) one of the annuitant | 8 | | members shall be a retired employee of a community college | 9 | | employer and (ii) one of the annuitant members shall be a | 10 | | retired employee of a public university employer. | 11 | | For the purposes of this Section, the Governor may make a | 12 | | nomination and the Senate may confirm the nominee in advance of | 13 | | the commencement of the nominee's term of office. | 14 | | (d-5) Beginning July 1, 2014, there shall be one additional | 15 | | member of the Board of Trustees, to be elected by the trustees | 16 | | of Illinois public universities from a list of nominees | 17 | | provided by the 14 presidents and chancellors of Illinois | 18 | | public universities, acting jointly. The number of nominees | 19 | | shall be at least twice the number of positions to be filled. | 20 | | The System shall administer the election. | 21 | | The member of the Board of Trustees elected under this | 22 | | subsection (d-5) shall serve for a term of 4 years and may, but | 23 | | need not, be a participant or annuitant of the System. | 24 | | (d-10) Beginning July 1, 2014, there shall be one | 25 | | additional member of the Board of Trustees, to be elected by | 26 | | the trustees of Illinois community college districts from a |
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| 1 | | list of nominees provided by an association of community | 2 | | college boards organized under Section 3-55 of the Public | 3 | | Community College Act, in consultation with trustees serving | 4 | | pursuant to Section 7-2 of that Act. The number of nominees | 5 | | shall be at least twice the number of positions to be filled. | 6 | | The System shall administer the election. | 7 | | The member of the Board of Trustees elected under this | 8 | | subsection (d-10) shall serve for a term of 4 years and may, | 9 | | but need not, be a participant or annuitant of the System. | 10 | | (d-15) Upon the expiration of the terms of the members of | 11 | | the Board appointed by the Governor under subdivision (d)(2) | 12 | | who are serving on the effective date of this amendatory Act of | 13 | | the 98th General Assembly, or immediately in the case of a | 14 | | vacancy in any of those positions on that effective date, 2 of | 15 | | those seats shall instead be filled in the manner set forth in | 16 | | subsection (d-5) and 2 of those seats shall instead be filled | 17 | | in the manner set forth in subsection (d-10), as follows: (1) | 18 | | whenever possible, positions available under this subsection | 19 | | shall be filled in a manner that produces equal numbers of | 20 | | positions filled in the manner provided under subsection (d-5) | 21 | | and subsection (d-10); and (2) when that is not possible, a | 22 | | position that becomes available under this subsection shall | 23 | | first be filled in the manner set forth in subsection (d-5). | 24 | | A member of the Board of Trustees elected under this | 25 | | subsection (d-15) shall serve for a term of 4 years and may, | 26 | | but need not, be a participant or annuitant of the System. |
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| 1 | | (d-20) Before July 1 of each even-numbered year, the Board | 2 | | shall elect one of its members to serve as Chairperson of the | 3 | | Board for a term of 2 years beginning on that July 1. | 4 | | (e) The 6 elected trustees under items (3) and (4) of | 5 | | subsection (d) shall be elected within 90 days after April 3, | 6 | | 2009 ( the effective date of Public Act 96-6) this amendatory | 7 | | Act of the 96th General Assembly for a term beginning on the | 8 | | 90th day after that the effective date of this amendatory Act . | 9 | | Trustees shall be elected thereafter as terms expire for a | 10 | | 6-year term beginning July 15 next following their election, | 11 | | and such election shall be held on May 1, or on May 2 when May 1 | 12 | | falls on a Sunday. The board may establish rules for the | 13 | | election of trustees to implement the provisions of Public Act | 14 | | 96-6 this amendatory Act of the 96th General Assembly and for | 15 | | future elections. Candidates for the participating trustee | 16 | | shall be nominated by petitions in writing, signed by not less | 17 | | than 400 participants with their addresses shown opposite their | 18 | | names. Candidates for the annuitant trustee shall be nominated | 19 | | by petitions in writing, signed by not less than 100 annuitants | 20 | | with their addresses shown opposite their names. If there is | 21 | | more than one qualified nominee for each elected trustee, then | 22 | | the board shall conduct a secret ballot election by mail for | 23 | | that trustee, in accordance with rules as established by the | 24 | | board. If there is only one qualified person nominated by | 25 | | petition for each elected trustee, then the election as | 26 | | required by this Section shall not be conducted for that |
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| 1 | | trustee and the board shall declare such nominee duly elected. | 2 | | A vacancy occurring in the elective membership of the board | 3 | | shall be filled for the unexpired term by the elected trustees | 4 | | serving on the board for the remainder of the term. | 5 | | The board may establish rules and procedures for the | 6 | | nomination and election of trustees under subsections (d-5), | 7 | | (d-10), and (d-15) of this Section. | 8 | | (f) A vacancy on the board of trustees caused by | 9 | | resignation,
death, expiration of term of office, or other | 10 | | reason shall be filled by a
qualified person appointed by the | 11 | | appointing authority or elected by the electing authority | 12 | | Governor for the remainder of the unexpired
term.
| 13 | | (g) Trustees (other than the trustees incumbent on June 30, | 14 | | 1995 or as provided in subsection (c) of this Section)
shall | 15 | | continue in office until their respective successors are | 16 | | appointed
and have qualified, except that a trustee appointed | 17 | | to one of the
participant positions shall be disqualified | 18 | | immediately upon the termination of
his or her status as a | 19 | | participant and a trustee appointed to one of the
annuitant | 20 | | positions shall be disqualified immediately upon the | 21 | | termination of
his or her status as an annuitant receiving a | 22 | | retirement annuity.
| 23 | | (h) Each trustee must take an oath of office
before a | 24 | | notary public of this State and shall qualify as a trustee upon | 25 | | the
presentation to the board of a certified copy of the oath. | 26 | | The oath must state
that the person will diligently and |
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| 1 | | honestly administer the affairs of the
retirement system, and | 2 | | will not knowingly violate or wilfully permit to be
violated | 3 | | any provisions of this Article.
| 4 | | Each trustee shall serve without compensation but shall be | 5 | | reimbursed for
expenses necessarily incurred in attending | 6 | | board meetings and carrying out his
or her duties as a trustee | 7 | | or officer of the system.
| 8 | | (i) This amendatory Act of 1995 is intended to supersede | 9 | | the changes made
to this Section by Public Act 89-4.
| 10 | | (Source: P.A. 96-6, eff. 4-3-09; 96-1000, eff. 7-2-10.)
| 11 | | (40 ILCS 5/15-168.2) | 12 | | Sec. 15-168.2. Audit of employers. Beginning August 1, 2014 | 13 | | 2013 , the System may audit the employment records and payroll | 14 | | records of all employers. When the System audits an employer, | 15 | | it shall specify the exact information it requires, which may | 16 | | include but need not be limited to the names, titles, and | 17 | | earnings history of every individual receiving compensation | 18 | | from the employer. If an employer is audited by the System, | 19 | | then the employer must provide to the System all necessary | 20 | | documents and records within 60 calendar days after receiving | 21 | | notification from the System. When the System audits an | 22 | | employer, it shall send related correspondence by certified | 23 | | mail.
| 24 | | (Source: P.A. 97-968, eff. 8-16-12.) |
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| 1 | | (40 ILCS 5/15-198)
| 2 | | Sec. 15-198. Application and expiration of new benefit | 3 | | increases. | 4 | | (a) As used in this Section, "new benefit increase" means | 5 | | an increase in the amount of either a retirement annuity | 6 | | calculated under Rule 1 of Section 15-136 (or subsection (c) or | 7 | | (d) of Section 1-160 with respect to a benefit payable under | 8 | | this System) or an automatic annual increase provided under | 9 | | subsection (d) of Section 15-136 (or subsection (e) of Section | 10 | | 1-160 with respect to a benefit payable under this System) any | 11 | | benefit provided under this Article , or an expansion of the | 12 | | conditions of eligibility for any benefit under Section 15-135 | 13 | | (or subsection (c), (d), or (e) of Section 1-160 with respect | 14 | | to a benefit payable under this System) this Article , that | 15 | | results from an amendment to this Code that takes effect after | 16 | | the effective date of this amendatory Act of the 98th 94th | 17 | | General Assembly. | 18 | | (b) Notwithstanding any other provision of this Code or any | 19 | | subsequent amendment to this Code, every new benefit increase | 20 | | is subject to this Section and shall be deemed to be granted | 21 | | only in conformance with and contingent upon compliance with | 22 | | the provisions of this Section.
| 23 | | (c) Beginning July 1, 2014, the State Actuary shall, within | 24 | | 6 months after the effective date of an amendatory Act that | 25 | | amends or affects benefits under this Article, certify to the | 26 | | System whether or not the amendatory Act is a new benefit |
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| 1 | | increase under this Section. If the State Actuary certifies to | 2 | | the System that an amendatory Act is a new benefit increase | 3 | | under this Section, the System shall notify each employer and | 4 | | the General Assembly of the certification. | 5 | | (d) If the State Actuary certifies that an amendatory Act | 6 | | is a new benefit increase under this Section, the Board shall | 7 | | either approve or deny the new benefit increase by resolution. | 8 | | (e) If the Board approves a new benefit increase by | 9 | | resolution, the Board shall develop and submit administrative | 10 | | rules necessary to implement the new benefit increase to the | 11 | | Joint Committee on Administrative Rules in a manner consistent | 12 | | with the Illinois Administrative Procedure Act. | 13 | | (f) If the Joint Committee on Administrative Rules does not | 14 | | object to a proposed rule necessary to implement a new benefit | 15 | | increase or if the Committee objects to such a rule but the | 16 | | System modifies the proposed rule to meet the Committee's | 17 | | objections, an employer under this Article may make an | 18 | | irrevocable election to approve the new benefit increase by | 19 | | resolution of the governing body of the employer. If the | 20 | | employer is the State, the new benefit increase shall be deemed | 21 | | approved without resolution, unless the amendatory Act | 22 | | provides otherwise. | 23 | | (g) A new benefit increase shall not apply to service of an | 24 | | employee with an employer unless that employer has approved the | 25 | | new benefit increase with respect to the employee's service | 26 | | accrued with that employer. The approval of an employer cannot |
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| 1 | | modify any of the terms of the new benefit increase, and the | 2 | | employer's approval of or failure to approve the new benefit | 3 | | increase applies to all participating employees of the | 4 | | employer. | 5 | | (h) No new benefit increase shall take effect for employees | 6 | | of any employer unless the conditions of this Section are | 7 | | satisfied. No new benefit increase shall take effect prior to | 8 | | the July 1st at least 12 months following the conditions of | 9 | | this Section being satisfied. | 10 | | (c) The Public Act enacting a new benefit increase must | 11 | | identify and provide for payment to the System of additional | 12 | | funding at least sufficient to fund the resulting annual | 13 | | increase in cost to the System as it accrues. | 14 | | Every new benefit increase is contingent upon the General | 15 | | Assembly providing the additional funding required under this | 16 | | subsection. The Commission on Government Forecasting and | 17 | | Accountability shall analyze whether adequate additional | 18 | | funding has been provided for the new benefit increase and | 19 | | shall report its analysis to the Public Pension Division of the | 20 | | Department of Financial and Professional Regulation. A new | 21 | | benefit increase created by a Public Act that does not include | 22 | | the additional funding required under this subsection is null | 23 | | and void. If the Public Pension Division determines that the | 24 | | additional funding provided for a new benefit increase under | 25 | | this subsection is or has become inadequate, it may so certify | 26 | | to the Governor and the State Comptroller and, in the absence |
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| 1 | | of corrective action by the General Assembly, the new benefit | 2 | | increase shall expire at the end of the fiscal year in which | 3 | | the certification is made.
| 4 | | (d) Every new benefit increase shall expire 5 years after | 5 | | its effective date or on such earlier date as may be specified | 6 | | in the language enacting the new benefit increase or provided | 7 | | under subsection (c). This does not prevent the General | 8 | | Assembly from extending or re-creating a new benefit increase | 9 | | by law. | 10 | | (e) Except as otherwise provided in the language creating | 11 | | the new benefit increase, a new benefit increase that expires | 12 | | under this Section continues to apply to persons who applied | 13 | | and qualified for the affected benefit while the new benefit | 14 | | increase was in effect and to the affected beneficiaries and | 15 | | alternate payees of such persons, but does not apply to any | 16 | | other person, including without limitation a person who | 17 | | continues in service after the expiration date and did not | 18 | | apply and qualify for the affected benefit while the new | 19 | | benefit increase was in effect.
| 20 | | (Source: P.A. 94-4, eff. 6-1-05.)
| 21 | | Section 90. The State Mandates Act is amended by adding | 22 | | Section 8.37 as follows: | 23 | | (30 ILCS 805/8.37 new) | 24 | | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 |
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| 1 | | of this Act, no reimbursement by the State is required for the | 2 | | implementation of any mandate created by this amendatory Act of | 3 | | the 98th General Assembly. | 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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