Full Text of SB2517 100th General Assembly
SB2517sam001 100TH GENERAL ASSEMBLY | Sen. Dan McConchie Filed: 2/20/2018
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| 1 | | AMENDMENT TO SENATE BILL 2517
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2517 as follows: | 3 | | on page 1, line 5, by replacing "16-106.4a and 16-106.4b" with | 4 | | "16-106.4a, 16-106.4b, and 17-127"; and
| 5 | | on page 24, immediately below line 5, by inserting the | 6 | | following:
| 7 | | "(40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
| 8 | | Sec. 17-127. Financing; revenues for the Fund.
| 9 | | (a) The revenues for the Fund shall consist of: (1) amounts | 10 | | paid into
the Fund by contributors thereto and from employer | 11 | | contributions and State
appropriations in accordance with this | 12 | | Article; (2) amounts contributed to the
Fund by an Employer; | 13 | | (3) amounts contributed to the Fund pursuant to any law
now in | 14 | | force or hereafter to be enacted; (4) contributions from any | 15 | | other
source; and (5) the earnings on investments.
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| 1 | | (b) The General Assembly finds that for many years the | 2 | | State has
contributed to the Fund an annual amount that is | 3 | | between 20% and 30% of the
amount of the annual State | 4 | | contribution to the Article 16 retirement system,
and the | 5 | | General Assembly declares that it is its goal and intention to | 6 | | continue
this level of contribution to the Fund in the future.
| 7 | | (c) Beginning in State fiscal year 1999, the State shall | 8 | | include in its annual
contribution to the Fund an additional | 9 | | amount equal to 0.544% of the Fund's
total teacher payroll; | 10 | | except that this additional contribution need not be
made in a | 11 | | fiscal year if the Board has certified in the previous fiscal | 12 | | year
that the Fund is at least 90% funded, based on actuarial | 13 | | determinations. These
additional State contributions are | 14 | | intended to offset a portion of the cost to
the Fund of the | 15 | | increases in retirement benefits resulting from this | 16 | | amendatory
Act of 1998.
| 17 | | (d) In addition to any other contribution required under | 18 | | this Article, including the contribution required under | 19 | | subsection (c), the State shall contribute to the Fund the | 20 | | following amounts: | 21 | | (1) For State fiscal year 2018, the State shall | 22 | | contribute $221,300,000 for the employer normal cost for | 23 | | fiscal year 2018 and the amount allowed under paragraph (3) | 24 | | of Section 17-142.1 of this Code to defray health insurance | 25 | | costs. Funds for this paragraph (1) shall come from funds | 26 | | appropriated for Evidence-Based Funding pursuant to |
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| 1 | | Section 18-8.15 of the School Code. | 2 | | (2) For Beginning in State fiscal year 2019, the State
| 3 | | shall contribute for each fiscal year an amount to be
| 4 | | determined by the Fund, equal to the employer normal cost
| 5 | | for that fiscal year, plus the amount allowed pursuant to | 6 | | paragraph (3) of Section 17-142.1 to defray health | 7 | | insurance costs. | 8 | | (3) Beginning in State fiscal year 2020 and each fiscal | 9 | | year thereafter, the State shall contribute for each fiscal | 10 | | year an amount to be determined by the Fund, equal to the | 11 | | employer normal cost for that fiscal year, plus the amount | 12 | | allowed pursuant to paragraph (3) of Section 17-142.1 to | 13 | | defray health insurance costs. However, the amount | 14 | | contributed under this paragraph shall be reduced by an | 15 | | amount to be determined by the Fund, equal to the increase | 16 | | in the employer normal cost of benefits resulting from any | 17 | | increase in salary paid to a teacher over the preceding | 18 | | school year. | 19 | | (e) The Board shall determine the amount of State | 20 | | contributions required for each fiscal year on the basis of the | 21 | | actuarial tables and other assumptions adopted by the Board and | 22 | | the recommendations of the actuary. On or before November 1 of | 23 | | each year, beginning November 1, 2017, the Board shall submit | 24 | | to the State Actuary, the Governor, and the General Assembly a | 25 | | proposed certification of the amount of the required State | 26 | | contribution to the Fund for the next fiscal year, along with |
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| 1 | | all of the actuarial assumptions, calculations, and data upon | 2 | | which that proposed certification is based. | 3 | | On or before January 1 of each year, beginning January 1,
| 4 | | 2018, the State Actuary shall issue a preliminary report
| 5 | | concerning the proposed certification and identifying, if
| 6 | | necessary, recommended changes in actuarial assumptions that
| 7 | | the Board must consider before finalizing its certification of
| 8 | | the required State contributions. | 9 | | (f) On or before January 15, 2018 and each January 15 | 10 | | thereafter, the Board shall certify to the Governor and the
| 11 | | General Assembly the amount of the required State contribution
| 12 | | for the next fiscal year. The certification shall include a
| 13 | | copy of the actuarial recommendations upon which it is based
| 14 | | and shall specifically identify the Fund's projected employer
| 15 | | normal cost for that fiscal year. The Board's certification
| 16 | | must note any deviations from the State Actuary's recommended
| 17 | | changes, the reason or reasons for not following the State
| 18 | | Actuary's recommended changes, and the fiscal impact of not
| 19 | | following the State Actuary's recommended changes on the
| 20 | | required State contribution. | 21 | | For the purposes of this Article, including issuing | 22 | | vouchers, and for the purposes of subsection (h) of Section 1.1 | 23 | | of the State Pension Funds Continuing Appropriation Act, the | 24 | | State contribution specified for State fiscal year 2018 shall | 25 | | be deemed to have been certified, by operation of law and | 26 | | without official action by the Board or the State Actuary, in |
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| 1 | | the amount provided in subsection (c) and subsection (d) of | 2 | | this Section. | 3 | | (g) For State fiscal year 2018, the State Board of | 4 | | Education shall submit vouchers, as directed by the Board, for | 5 | | payment of State contributions to the Fund for the required | 6 | | annual State contribution under subsection (d) of this Section. | 7 | | These vouchers shall be paid by the State Comptroller and | 8 | | Treasurer by warrants drawn on the amount appropriated to the | 9 | | State Board of Education from the Common School Fund in Section | 10 | | 5 of Article 97 of Public Act 100-21. If State appropriations | 11 | | for State fiscal year 2018 are less than the amount lawfully | 12 | | vouchered under this subsection, the difference shall be paid | 13 | | from the Common School Fund under the continuing appropriation | 14 | | authority provided in Section 1.1 of the State Pension Funds | 15 | | Continuing Appropriation Act. | 16 | | (h) For State fiscal year 2018, the Board shall submit | 17 | | vouchers for the payment of State contributions to the Fund for | 18 | | the required annual State contribution under subsection (c) of | 19 | | this Section. Beginning in State fiscal year 2019, the Board | 20 | | shall submit vouchers for payment of State contributions to the | 21 | | Fund for the required annual State contribution under | 22 | | subsections (c) and (d) of this Section. These vouchers shall | 23 | | be paid by the State Comptroller and Treasurer by warrants | 24 | | drawn on the funds appropriated to the Fund for that fiscal | 25 | | year. If State appropriations to the Fund for the applicable | 26 | | fiscal year are less than the amount lawfully vouchered under |
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| 1 | | this subsection, the difference shall be paid from the Common | 2 | | School Fund under the continuing appropriation authority | 3 | | provided in Section 1.1 of the State Pension Funds Continuing | 4 | | Appropriation Act. | 5 | | (Source: P.A. 100-465, eff. 8-31-17.)".
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