Full Text of SB2389 98th General Assembly
SB2389ham002 98TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 5/31/2013
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| 1 | | AMENDMENT TO SENATE BILL 2389
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2389, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. If and only if Senate Bill 1687 of the 98th | 6 | | General Assembly becomes law, the Illinois Pension Code is | 7 | | amended by changing Section 15-155 as follows:
| 8 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 9 | | Sec. 15-155. State and employer contributions.
| 10 | | (a) The State of Illinois shall make contributions by | 11 | | appropriations of
amounts which, together with contributions | 12 | | paid by employers, other employer contributions from trust,
| 13 | | federal, and other funds, employee contributions, income from | 14 | | investments,
and other income of this System, will be | 15 | | sufficient to meet the cost of
maintaining and administering | 16 | | the System in accordance
with actuarial recommendations.
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| 1 | | The Board shall determine the amount of State and employer | 2 | | contributions required for
each fiscal year on the basis of the | 3 | | actuarial tables and other assumptions
adopted by the Board and | 4 | | the recommendations of the System's actuary, using the formulas | 5 | | provided in this Section.
| 6 | | The System shall make all necessary assumptions to | 7 | | determine and allocate total demographic gains and losses for | 8 | | the purpose of determining State and employer contributions | 9 | | under this Section. Such assumptions shall include but not be | 10 | | limited to the rates of retirement, termination, disability, | 11 | | and mortality. | 12 | | (a-1) For State fiscal years 2012 through 2014, the minimum | 13 | | contribution
to the System to be made by the State for each | 14 | | fiscal year shall be an amount
determined by the System to be | 15 | | sufficient to bring the total assets of the
System up to 90% of | 16 | | the total actuarial liabilities of the System by the end of
| 17 | | State fiscal year 2045. In making these determinations, the | 18 | | required State
contribution shall be calculated each year as a | 19 | | level percentage of payroll
over the years remaining to and | 20 | | including fiscal year 2045 and shall be
determined under the | 21 | | projected unit credit actuarial cost 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 | | Amounts received by the System pursuant to Section 25 of | 15 | | the Budget Stabilization Act or Section 8.12 of the State | 16 | | Finance Act in any fiscal year do not reduce and do not | 17 | | constitute payment of any portion of the minimum State | 18 | | contribution required under this Article in that fiscal year. | 19 | | Such amounts shall not reduce, and shall not be included in the | 20 | | calculation of, the required State contributions under this | 21 | | Article in any future year until the System has reached a | 22 | | funding ratio of at least 90%. A reference in this Article to | 23 | | the "required State contribution" or any substantially similar | 24 | | term does not include or apply to any amounts payable to the | 25 | | System under Section 25 of the Budget Stabilization Act. | 26 | | Notwithstanding any other provision of this Section, the |
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| 1 | | required State
contribution for State fiscal year 2005 and for | 2 | | fiscal year 2008 through fiscal year 2014, as
calculated under | 3 | | this Section and
certified under Section 15-165, shall not | 4 | | exceed an amount equal to (i) the
amount of the required State | 5 | | contribution that would have been calculated under
this Section | 6 | | for that fiscal year if the System had not received any | 7 | | payments
under subsection (d) of Section 7.2 of the General | 8 | | Obligation Bond Act, minus
(ii) the portion of the State's | 9 | | total debt service payments for that fiscal
year on the bonds | 10 | | issued in fiscal year 2003 for the purposes of that Section | 11 | | 7.2, as determined
and certified by the Comptroller, that is | 12 | | the same as the System's portion of
the total moneys | 13 | | distributed under subsection (d) of Section 7.2 of the General
| 14 | | Obligation Bond Act. In determining this maximum for State | 15 | | fiscal years 2008 through 2010, however, the amount referred to | 16 | | in item (i) shall be increased, as a percentage of the | 17 | | applicable employee payroll, in equal increments calculated | 18 | | from the sum of the required State contribution for State | 19 | | fiscal year 2007 plus the applicable portion of the State's | 20 | | total debt service payments for fiscal year 2007 on the bonds | 21 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 22 | | the General
Obligation Bond Act, so that, by State fiscal year | 23 | | 2011, the
State is contributing at the rate otherwise required | 24 | | under this Section.
| 25 | | (a-5) In addition to the contributions that the State is | 26 | | otherwise required to make under this Article, beginning in |
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| 1 | | fiscal year 2015 and in each fiscal year thereafter until the | 2 | | State has no further obligation to make contributions to the | 3 | | System under subsection (a-1), the State shall be required to | 4 | | make an additional contribution to the System equal to the | 5 | | projected dollar amount of contributions to be made by | 6 | | employers pursuant to items (i) and (vi) of subsection (a-10) | 7 | | for that fiscal year. Contributions required to be made | 8 | | pursuant to this subsection do not reduce and do not constitute | 9 | | payment of any portion of the required State contribution made | 10 | | to the System pursuant to subsection (a-1) in that fiscal year. | 11 | | A contribution required to be made pursuant to this subsection | 12 | | shall not reduce, and shall not be included in the calculation | 13 | | of, the required contribution to be made by the State pursuant | 14 | | to subsection (a-1) in any future year, until the System has | 15 | | received the contribution pursuant to this subsection. | 16 | | (a-10) Subject to the limitations provided in subsection | 17 | | (a-15) of this Section, beginning with State fiscal year 2015, | 18 | | each employer under this Article shall pay to the System a | 19 | | required contribution determined as a percentage of projected | 20 | | payroll and sufficient to produce an annual amount equal to: | 21 | | (i) the employer normal cost for that fiscal year for | 22 | | participating employees of that employer (excluding costs | 23 | | attributable to any new benefit increases approved by that | 24 | | employer pursuant to Section 15-198), determined as a | 25 | | percentage of applicable payroll; plus | 26 | | (ii) the amount required for that fiscal year to |
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| 1 | | amortize any unfunded actuarial accrued liability | 2 | | associated with the present value of liabilities | 3 | | attributable to the employer's account under Section | 4 | | 15-155.2 (excluding costs attributable to any new benefit | 5 | | increases approved by that employer pursuant to Section | 6 | | 15-198), determined
as a level percentage of payroll over a | 7 | | 30-year rolling amortization period; plus | 8 | | (iii) that employer's normal cost for that fiscal year | 9 | | attributable to all new benefit increases approved by that | 10 | | employer pursuant to Section 15-198; plus | 11 | | (iv) the amounts required for that fiscal year to | 12 | | amortize any unfunded actuarial accrued liability | 13 | | associated with the present value of each new benefit | 14 | | increase approved by that employer pursuant to Section | 15 | | 15-198, determined as a level percentage of payroll over a | 16 | | fixed 10-year amortization period; plus | 17 | | (v) beginning when the State has no further obligation | 18 | | to make contributions to the System under subsection (a-1), | 19 | | the amount required for that fiscal year to amortize any | 20 | | unfunded actuarial accrued liability of the System not | 21 | | attributable to any employer's account under Section | 22 | | 15-155.2, determined
as a level percentage of payroll over | 23 | | a 30-year rolling amortization period; plus | 24 | | (vi) the amount of employer contributions for that | 25 | | fiscal year required for employees of that employer who | 26 | | participate in the self-managed plan under Section |
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| 1 | | 15-158.2. | 2 | | In determining contributions required under item (i) of | 3 | | this subsection, the System shall determine an aggregate rate | 4 | | for all employers, expressed as a percentage of projected | 5 | | payroll, exclusive of costs attributable to any new benefit | 6 | | increase approved pursuant to Section 15-198 and exclusive of | 7 | | employer contributions required for participating employees of | 8 | | the self-managed plan under Section 15-158.2. | 9 | | In determining contributions required under item (ii) of | 10 | | this subsection, the System shall determine an individual rate | 11 | | determined as a percentage of projected payroll applicable to | 12 | | each employer based on that employer's individual account under | 13 | | Section 15-155.2, exclusive of (i) any liabilities | 14 | | attributable to the System as a whole rather than to the | 15 | | employer's account and (ii) costs attributable to any new | 16 | | benefit increase approved pursuant to Section 15-198. | 17 | | In determining contributions required under items (iii) | 18 | | and (iv) of this subsection, the System shall determine an | 19 | | individual rate determined as a percentage of projected payroll | 20 | | applicable to each employer that approves a new benefit | 21 | | increase pursuant to Section 15-198. | 22 | | In determining contributions required under item (v) of | 23 | | this subsection, the System shall determine an aggregate rate | 24 | | determined as a percentage of projected payroll applicable to | 25 | | all employers under the System. | 26 | | The contributions required under this subsection (a-10) |
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| 1 | | shall be paid by an employer concurrently with that employer's | 2 | | payroll payment period. | 3 | | (a-15) For State fiscal year 2015, the required | 4 | | contribution of employers under item (i) of subsection (a-10) | 5 | | shall be reduced to an amount equal to 0.5% of applicable | 6 | | payroll. For each fiscal year thereafter, the required | 7 | | contribution of employers under item (i) of subsection (a-10) | 8 | | shall be the percentage of projected payroll required under | 9 | | this subsection (a-15) for the previous fiscal year, increased | 10 | | by 0.5% of payroll, except that when the percentage of | 11 | | projected payroll required under this subsection (a-15) first | 12 | | reaches the percentage of payroll required under item (i) of | 13 | | subsection (a-10), this subsection (a-15) shall cease to apply. | 14 | | For State fiscal year 2015, the required contribution of | 15 | | employers under item (vi) of subsection (a-10) shall be reduced | 16 | | to an amount equal to 0.5% of applicable payroll. For each | 17 | | fiscal year thereafter, the required contribution of employers | 18 | | under item (vi) of subsection (a-10) shall be the percentage of | 19 | | projected payroll required under this subsection (a-15) for the | 20 | | previous fiscal year, increased by 0.5% of payroll, except that | 21 | | when the percentage of payroll required under this subsection | 22 | | (a-15) first reaches the percentage of payroll required under | 23 | | item (vi) of subsection (a-10), this subsection (a-15) shall | 24 | | cease to apply. | 25 | | The limitations in this subsection (a-15) do not apply to | 26 | | (i) employer contributions required to be made under subsection |
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| 1 | | (b) of this Section for employees who are compensated out of | 2 | | trust or federal funds, (ii) contributions required to be made | 3 | | by the City of Champaign or the City of Urbana for individuals | 4 | | described under subsection (h) of Section 15-107, (iii) | 5 | | contributions required to be made by a teacher organization for | 6 | | individuals described under subsection (i) of Section 15-107, | 7 | | or (iv) contributions required to be made by a teacher | 8 | | organization for individuals on special leave of absence under | 9 | | Section 15-113.2. | 10 | | (b) If an employee is paid from trust or federal funds, the | 11 | | employer
shall pay to the Board contributions from those funds | 12 | | which are
sufficient to cover the accruing normal costs on | 13 | | behalf of the employee.
However, universities having employees | 14 | | who are compensated out of local
auxiliary funds, income funds, | 15 | | or service enterprise funds are not required
to pay such | 16 | | contributions on behalf of those employees prior to July 1, | 17 | | 2014. Beginning July 1, 2014, universities having employees who | 18 | | are compensated out of local auxiliary funds, income funds, or | 19 | | service enterprise funds shall pay to the Board contributions | 20 | | from those funds that are sufficient to cover the accruing | 21 | | normal costs on behalf of those employees. The local auxiliary
| 22 | | funds, income funds, and service enterprise funds of | 23 | | universities shall not be
considered trust funds for the | 24 | | purpose of this Article, but funds of alumni
associations, | 25 | | foundations, and athletic associations which are affiliated | 26 | | with
the universities included as employers under this Article |
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| 1 | | and other employers
which do not receive State appropriations | 2 | | are considered to be trust funds for
the purpose of this | 3 | | Article. Beginning July 1, 2014, the provisions of this | 4 | | subsection (b) apply to the payment of employer contributions | 5 | | required under subsection (a-10) of this Section and shall not | 6 | | be construed as a separate or additional contribution.
| 7 | | (b-1) The City of Urbana and the City of Champaign shall | 8 | | each make
employer contributions to this System for their | 9 | | respective firefighter
employees who participate in this | 10 | | System pursuant to subsection (h) of Section
15-107. The rate | 11 | | of contributions to be made by those municipalities shall
be | 12 | | determined annually by the Board on the basis of the actuarial | 13 | | assumptions
adopted by the Board and the recommendations of the | 14 | | actuary, and shall be
expressed as a percentage of salary for | 15 | | each such employee. The Board shall
certify the rate to the | 16 | | affected municipalities as soon as may be practical.
The | 17 | | employer contributions required under this subsection shall be | 18 | | remitted by
the municipality to the System at the same time and | 19 | | in the same manner as
employee contributions.
| 20 | | (c) Through State fiscal year 1995: The total employer | 21 | | contribution shall
be apportioned among the various funds of | 22 | | the State and other employers,
whether trust, federal, or other | 23 | | funds, in accordance with actuarial procedures
approved by the | 24 | | Board. State of Illinois contributions for employers receiving
| 25 | | State appropriations for personal services shall be payable | 26 | | from appropriations
made to the employers or to the System. The |
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| 1 | | contributions for Class I
community colleges covering earnings | 2 | | other than those paid from trust and
federal funds, shall be | 3 | | payable solely from appropriations to the Illinois
Community | 4 | | College Board or the System for employer contributions.
| 5 | | (d) Beginning in State fiscal year 1996, the required State | 6 | | contributions
to the System shall be appropriated directly to | 7 | | the System and shall be payable
through vouchers issued in | 8 | | accordance with subsection (c) of Section 15-165, except as | 9 | | provided in subsection (g).
| 10 | | (e) The State Comptroller shall draw warrants payable to | 11 | | the System upon
proper certification by the System or by the | 12 | | employer in accordance with the
appropriation laws and this | 13 | | Code.
| 14 | | (f) Normal costs under this Section means liability for
| 15 | | pensions and other benefits which accrues to the System because | 16 | | of the
credits earned for service rendered by the participants | 17 | | during the
fiscal year and expenses of administering the | 18 | | System, but shall not
include the principal of or any | 19 | | redemption premium or interest on any bonds
issued by the Board | 20 | | or any expenses incurred or deposits required in
connection | 21 | | therewith.
| 22 | | (g) If the amount of a participant's earnings for any | 23 | | academic year used to determine the final rate of earnings, | 24 | | determined on a full-time equivalent basis, exceeds the amount | 25 | | of his or her earnings with the same employer for the previous | 26 | | academic year, determined on a full-time equivalent basis, by |
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| 1 | | more than 6%, the participant's employer shall pay to the | 2 | | System, in addition to all other payments required under this | 3 | | Section and in accordance with guidelines established by the | 4 | | System, the present value of the increase in benefits resulting | 5 | | from the portion of the increase in earnings that is in excess | 6 | | of 6%. This present value shall be computed by the System on | 7 | | the basis of the actuarial assumptions and tables used in the | 8 | | most recent actuarial valuation of the System that is available | 9 | | at the time of the computation. The System may require the | 10 | | employer to provide any pertinent information or | 11 | | documentation. | 12 | | Whenever it determines that a payment is or may be required | 13 | | under this subsection (g), the System shall calculate the | 14 | | amount of the payment and bill the employer for that amount. | 15 | | The bill shall specify the calculations used to determine the | 16 | | amount due. If the employer disputes the amount of the bill, it | 17 | | may, within 30 days after receipt of the bill, apply to the | 18 | | System in writing for a recalculation. The application must | 19 | | specify in detail the grounds of the dispute and, if the | 20 | | employer asserts that the calculation is subject to subsection | 21 | | (h) or (i) of this Section, must include an affidavit setting | 22 | | forth and attesting to all facts within the employer's | 23 | | knowledge that are pertinent to the applicability of subsection | 24 | | (h) or (i). Upon receiving a timely application for | 25 | | recalculation, the System shall review the application and, if | 26 | | appropriate, recalculate the amount due.
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| 1 | | The employer contributions required under this subsection | 2 | | (g) may be paid in the form of a lump sum within 90 days after | 3 | | receipt of the bill. If the employer contributions are not paid | 4 | | within 90 days after receipt of the bill, then interest will be | 5 | | charged at a rate equal to the System's annual actuarially | 6 | | assumed rate of return on investment compounded annually from | 7 | | the 91st day after receipt of the bill. Payments must be | 8 | | concluded within 3 years after the employer's receipt of the | 9 | | bill. | 10 | | (h) This subsection (h) applies only to (1) payments made | 11 | | or salary increases given on or after June 1, 2005 but before | 12 | | July 1, 2011 and (2) payments made or salary increases given | 13 | | after the limitation on employer contributions under | 14 | | subsection (a-15) of Section 15-155 ceases to apply to | 15 | | contributions under item (i) of subsection (a-10) of that | 16 | | Section. The changes made by Public Act 94-1057 shall not | 17 | | require the System to refund any payments received before July | 18 | | 31, 2006 (the effective date of Public Act 94-1057). | 19 | | When assessing payment for any amount due under subsection | 20 | | (g), the System shall exclude earnings increases paid to | 21 | | participants under contracts or collective bargaining | 22 | | agreements entered into, amended, or renewed before June 1, | 23 | | 2005.
| 24 | | When assessing payment for any amount due under subsection | 25 | | (g), the System shall exclude earnings increases paid to a | 26 | | participant at a time when the participant is 10 or more years |
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| 1 | | from retirement eligibility under Section 15-135.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (g), the System shall exclude earnings increases resulting from | 4 | | overload work, including a contract for summer teaching, or | 5 | | overtime when the employer has certified to the System, and the | 6 | | System has approved the certification, that: (i) in the case of | 7 | | overloads (A) the overload work is for the sole purpose of | 8 | | academic instruction in excess of the standard number of | 9 | | instruction hours for a full-time employee occurring during the | 10 | | academic year that the overload is paid and (B) the earnings | 11 | | increases are equal to or less than the rate of pay for | 12 | | academic instruction computed using the participant's current | 13 | | salary rate and work schedule; and (ii) in the case of | 14 | | overtime, the overtime was necessary for the educational | 15 | | mission. | 16 | | When assessing payment for any amount due under subsection | 17 | | (g), the System shall exclude any earnings increase resulting | 18 | | from (i) a promotion for which the employee moves from one | 19 | | classification to a higher classification under the State | 20 | | Universities Civil Service System, (ii) a promotion in academic | 21 | | rank for a tenured or tenure-track faculty position, or (iii) a | 22 | | promotion that the Illinois Community College Board has | 23 | | recommended in accordance with subsection (k) of this Section. | 24 | | These earnings increases shall be excluded only if the | 25 | | promotion is to a position that has existed and been filled by | 26 | | a member for no less than one complete academic year and the |
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| 1 | | earnings increase as a result of the promotion is an increase | 2 | | that results in an amount no greater than the average salary | 3 | | paid for other similar positions. | 4 | | (i) When assessing payment for any amount due under | 5 | | subsection (g), the System shall exclude any salary increase | 6 | | described in subsection (h) of this Section given on or after | 7 | | July 1, 2011 but before July 1, 2014 under a contract or | 8 | | collective bargaining agreement entered into, amended, or | 9 | | renewed on or after June 1, 2005 but before July 1, 2011.
| 10 | | (j) The System shall prepare a report and file copies of | 11 | | the report with the Governor and the General Assembly by | 12 | | January 1, 2007 that contains all of the following information: | 13 | | (1) The number of recalculations required by the | 14 | | changes made to this Section by Public Act 94-1057 for each | 15 | | employer. | 16 | | (2) The dollar amount by which each employer's | 17 | | contribution to the System was changed due to | 18 | | recalculations required by Public Act 94-1057. | 19 | | (3) The total amount the System received from each | 20 | | employer as a result of the changes made to this Section by | 21 | | Public Act 94-4. | 22 | | (4) The increase in the required State contribution | 23 | | resulting from the changes made to this Section by Public | 24 | | Act 94-1057. | 25 | | (k) The Illinois Community College Board shall adopt rules | 26 | | for recommending lists of promotional positions submitted to |
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| 1 | | the Board by community colleges and for reviewing the | 2 | | promotional lists on an annual basis. When recommending | 3 | | promotional lists, the Board shall consider the similarity of | 4 | | the positions submitted to those positions recognized for State | 5 | | universities by the State Universities Civil Service System. | 6 | | The Illinois Community College Board shall file a copy of its | 7 | | findings with the System. The System shall consider the | 8 | | findings of the Illinois Community College Board when making | 9 | | determinations under this Section. The System shall not exclude | 10 | | any earnings increases resulting from a promotion when the | 11 | | promotion was not submitted by a community college. Nothing in | 12 | | this subsection (k) shall require any community college to | 13 | | submit any information to the Community College Board.
| 14 | | (l) For purposes of determining the required State | 15 | | contribution to the System, the value of the System's assets | 16 | | shall be equal to the actuarial value of the System's assets, | 17 | | which shall be calculated as follows: | 18 | | As of June 30, 2008, the actuarial value of the System's | 19 | | assets shall be equal to the market value of the assets as of | 20 | | that date. In determining the actuarial value of the System's | 21 | | assets for fiscal years after June 30, 2008, any actuarial | 22 | | gains or losses from investment return incurred in a fiscal | 23 | | year shall be recognized in equal annual amounts over the | 24 | | 5-year period following that fiscal year. | 25 | | (m) For purposes of determining the required State | 26 | | contribution to the system for a particular year, the actuarial |
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| 1 | | value of assets shall be assumed to earn a rate of return equal | 2 | | to the system's actuarially assumed rate of return. | 3 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 4 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 5 | | 7-13-12; 09800SB1687ham002.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law, but no earlier than the effective date of Senate | 8 | | Bill 1687 of the 98th General Assembly.".
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