Full Text of SB1646 102nd General Assembly
SB1646ham002 102ND GENERAL ASSEMBLY | Rep. Michael T. Marron Filed: 5/7/2021
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| 1 | | AMENDMENT TO SENATE BILL 1646
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1646 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 16-127 and 16-158 as follows:
| 6 | | (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
| 7 | | Sec. 16-127. Computation of creditable service.
| 8 | | (a) Each member shall receive regular credit for all
| 9 | | service as a teacher from the date membership begins, for | 10 | | which
satisfactory evidence is supplied and all contributions | 11 | | have been paid.
| 12 | | (b) The following periods of service shall earn optional | 13 | | credit and
each member shall receive credit for all such | 14 | | service for which
satisfactory evidence is supplied and all | 15 | | contributions have been paid as
of the date specified:
| 16 | | (1) Prior service as a teacher.
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| 1 | | (2) Service in a capacity essentially similar or | 2 | | equivalent to that of a
teacher, in the public common | 3 | | schools in school districts in this State not
included | 4 | | within the provisions of this System, or of any other | 5 | | State,
territory, dependency or possession of the United | 6 | | States, or in schools
operated by or under the auspices of | 7 | | the United States, or under the
auspices of any agency or | 8 | | department of any other State, and service during
any | 9 | | period of professional speech correction or special | 10 | | education
experience for a public agency within this State | 11 | | or any other State,
territory, dependency or possession of | 12 | | the United States, and service prior
to February 1, 1951 | 13 | | as a recreation worker for the Illinois Department of
| 14 | | Public Safety, for a period not exceeding the lesser of | 15 | | 2/5 of the total
creditable service of the member or 10 | 16 | | years. The maximum service of 10
years which is allowable | 17 | | under this paragraph shall be reduced by the
service | 18 | | credit which is validated by other retirement systems | 19 | | under
paragraph (i) of Section 15-113 and paragraph 1 of | 20 | | Section 17-133. Credit
granted under this paragraph may | 21 | | not be used in determination of a
retirement annuity or | 22 | | disability benefits unless the member has at least 5
years | 23 | | of creditable service earned subsequent to this employment | 24 | | with one
or more of the following systems: Teachers' | 25 | | Retirement System of the State
of Illinois, State | 26 | | Universities Retirement System, and the Public School
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| 1 | | Teachers' Pension and Retirement Fund of Chicago. Whenever | 2 | | such service
credit exceeds the maximum allowed for all | 3 | | purposes of this Article, the
first service rendered in | 4 | | point of time shall be considered.
The changes to this | 5 | | subdivision (b)(2) made by Public Act 86-272 shall
apply | 6 | | not only to persons who on or after its effective date | 7 | | (August 23,
1989) are in service as a teacher under the | 8 | | System, but also to persons
whose status as such a teacher | 9 | | terminated prior to such effective date,
whether or not | 10 | | such person is an annuitant on that date.
| 11 | | (3) Any periods immediately following teaching | 12 | | service, under this
System or under Article 17, (or | 13 | | immediately following service prior to
February 1, 1951 as | 14 | | a recreation worker for the Illinois Department of
Public | 15 | | Safety) spent in active service with the military forces | 16 | | of the
United States; periods spent in educational | 17 | | programs that prepare for
return to teaching sponsored by | 18 | | the federal government following such
active military | 19 | | service; if a teacher returns to teaching service within
| 20 | | one calendar year after discharge or after the completion | 21 | | of the
educational program, a further period, not | 22 | | exceeding one calendar year,
between time spent in | 23 | | military service or in such educational programs and
the | 24 | | return to employment as a teacher under this System; and a | 25 | | period of up
to 2 years of active military service not | 26 | | immediately following employment
as a teacher.
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| 1 | | The changes to this Section and Section 16-128 | 2 | | relating to military
service made by P.A. 87-794 shall | 3 | | apply not only to persons who on or after its
effective | 4 | | date are in service as a teacher under the System, but also | 5 | | to
persons whose status as a teacher terminated prior to | 6 | | that date, whether or not
the person is an annuitant on | 7 | | that date. In the case of an annuitant who
applies for | 8 | | credit allowable under this Section for a period of | 9 | | military
service that did not immediately follow | 10 | | employment, and who has made the
required contributions | 11 | | for such credit, the annuity shall be recalculated to
| 12 | | include the additional service credit, with the increase | 13 | | taking effect on the
date the System received written | 14 | | notification of the annuitant's intent to
purchase the | 15 | | credit, if payment of all the required contributions is | 16 | | made
within 60 days of such notice, or else on the first | 17 | | annuity payment date
following the date of payment of the | 18 | | required contributions. In calculating
the automatic | 19 | | annual increase for an annuity that has been recalculated | 20 | | under
this Section, the increase attributable to the | 21 | | additional service allowable
under P.A. 87-794 shall be | 22 | | included in the calculation of automatic annual
increases | 23 | | accruing after the effective date of the recalculation.
| 24 | | Credit for military service shall be determined as | 25 | | follows: if entry
occurs during the months of July, | 26 | | August, or September and the member was a
teacher at the |
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| 1 | | end of the immediately preceding school term, credit shall
| 2 | | be granted from July 1 of the year in which he or she | 3 | | entered service; if
entry occurs during the school term | 4 | | and the teacher was in teaching service
at the beginning | 5 | | of the school term, credit shall be granted from July 1 of
| 6 | | such year. In all other cases where credit for military | 7 | | service is allowed,
credit shall be granted from the date | 8 | | of entry into the service.
| 9 | | The total period of military service for which credit | 10 | | is granted shall
not exceed 5 years for any member unless | 11 | | the service: (A) is validated
before July 1, 1964, and (B) | 12 | | does not extend beyond July 1, 1963. Credit
for military | 13 | | service shall be granted under this Section only if not | 14 | | more
than 5 years of the military service for which credit | 15 | | is granted under this
Section is used by the member to | 16 | | qualify for a military retirement
allotment from any | 17 | | branch of the armed forces of the United States. The
| 18 | | changes to this subdivision (b)(3) made by Public Act | 19 | | 86-272 shall apply
not only to persons who on or after its | 20 | | effective date (August 23, 1989)
are in service as a | 21 | | teacher under the System, but also to persons whose
status | 22 | | as such a teacher terminated prior to such effective date, | 23 | | whether
or not such person is an annuitant on that date.
| 24 | | (4) Any periods served as a member of the General | 25 | | Assembly.
| 26 | | (5)(i) Any periods for which a teacher, as defined in |
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| 1 | | Section
16-106, is granted a leave of absence, provided he | 2 | | or she returns to teaching
service creditable under this | 3 | | System or the State Universities Retirement
System | 4 | | following the leave; (ii) periods during which a teacher | 5 | | is
involuntarily laid off from teaching, provided he or | 6 | | she returns to teaching
following the lay-off; (iii) | 7 | | periods prior to July 1, 1983 during which
a teacher | 8 | | ceased covered employment due to pregnancy, provided that | 9 | | the teacher
returned to teaching service creditable under | 10 | | this System or the State
Universities Retirement System | 11 | | following the pregnancy and submits evidence
satisfactory | 12 | | to the Board documenting that the employment ceased due to
| 13 | | pregnancy; and (iv) periods prior to July 1, 1983 during | 14 | | which a teacher
ceased covered employment for the purpose | 15 | | of adopting an infant under 3 years
of age or caring for a | 16 | | newly adopted infant under 3 years of age, provided that
| 17 | | the teacher returned to teaching service creditable under | 18 | | this System or the
State Universities Retirement System | 19 | | following the adoption and submits
evidence satisfactory | 20 | | to the Board documenting that the employment ceased for
| 21 | | the purpose of adopting an infant under 3 years of age or | 22 | | caring for a newly
adopted infant under 3 years of age. | 23 | | However, total credit under this
paragraph (5) may not | 24 | | exceed 3 years.
| 25 | | Any qualified member or annuitant may apply for credit | 26 | | under item (iii)
or (iv) of this paragraph (5) without |
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| 1 | | regard to whether service was
terminated before the | 2 | | effective date of this amendatory Act of 1997. In the case | 3 | | of an annuitant who establishes credit under item (iii)
or | 4 | | (iv), the annuity shall be recalculated to include the | 5 | | additional
service credit. The increase in annuity shall | 6 | | take effect on the date the
System receives written | 7 | | notification of the annuitant's intent to purchase the
| 8 | | credit, if the required evidence is submitted and the | 9 | | required contribution
paid within 60 days of that | 10 | | notification, otherwise on the first annuity
payment date | 11 | | following the System's receipt of the required evidence | 12 | | and
contribution. The increase in an annuity recalculated | 13 | | under this provision
shall be included in the calculation | 14 | | of automatic annual increases in the
annuity accruing | 15 | | after the effective date of the recalculation.
| 16 | | Optional credit may be purchased under this subsection | 17 | | (b)(5) for
periods during which a teacher has been granted | 18 | | a leave of absence pursuant
to Section 24-13 of the School | 19 | | Code. A teacher whose service under this
Article | 20 | | terminated prior to the effective date of P.A. 86-1488 | 21 | | shall be
eligible to purchase such optional credit. If a | 22 | | teacher who purchases this
optional credit is already | 23 | | receiving a retirement annuity under this Article,
the | 24 | | annuity shall be recalculated as if the annuitant had | 25 | | applied for the leave
of absence credit at the time of | 26 | | retirement. The difference between the
entitled annuity |
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| 1 | | and the actual annuity shall be credited to the purchase | 2 | | of
the optional credit. The remainder of the purchase cost | 3 | | of the optional credit
shall be paid on or before April 1, | 4 | | 1992.
| 5 | | The change in this paragraph made by Public Act 86-273 | 6 | | shall
be applicable to teachers who retire after June 1, | 7 | | 1989, as well as to
teachers who are in service on that | 8 | | date.
| 9 | | (6) Any days of unused and uncompensated accumulated | 10 | | sick leave earned
by a teacher. The service credit granted | 11 | | under this paragraph shall be the
ratio of the number of | 12 | | unused and uncompensated accumulated sick leave days
to | 13 | | 170 days, subject to a maximum of 2 years of service
| 14 | | credit. Prior to the member's retirement, each former | 15 | | employer shall
certify to the System the number of unused | 16 | | and uncompensated accumulated
sick leave days credited to | 17 | | the member at the time of termination of service.
The | 18 | | period of unused sick leave shall not be considered in | 19 | | determining
the effective date of retirement. A member is | 20 | | not required to make
contributions in order to obtain | 21 | | service credit for unused sick leave.
| 22 | | Credit for sick leave shall, at retirement, be granted | 23 | | by the System
for any retiring regional or assistant | 24 | | regional superintendent of schools
at the rate of 6 days | 25 | | per year of creditable service or portion thereof
| 26 | | established while serving as such superintendent or |
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| 1 | | assistant
superintendent.
| 2 | | (7) Periods prior to February 1, 1987 served as an | 3 | | employee of the
Illinois Mathematics and Science Academy | 4 | | for which credit has not been
terminated under Section | 5 | | 15-113.9 of this Code.
| 6 | | (8) Service as a substitute teacher for work performed
| 7 | | prior to July 1, 1990.
| 8 | | (9) Service as a part-time teacher for work performed
| 9 | | prior to July 1, 1990.
| 10 | | (10) Up to 2 years of employment with Southern | 11 | | Illinois University -
Carbondale from September 1, 1959 to | 12 | | August 31, 1961, or with Governors
State University from | 13 | | September 1, 1972 to August 31, 1974, for which the
| 14 | | teacher has no credit under Article 15. To receive credit | 15 | | under this item
(10), a teacher must apply in writing to | 16 | | the Board and pay the required
contributions before May 1, | 17 | | 1993 and have at least 12 years of service
credit under | 18 | | this Article.
| 19 | | (b-1) A member may establish optional credit for up to 2 | 20 | | years of service
as a teacher or administrator employed by a | 21 | | private school recognized by the
Illinois State Board of | 22 | | Education, provided that the teacher (i) was certified
under | 23 | | the law governing the certification of teachers at the time | 24 | | the service
was rendered, (ii) applies in writing on or before | 25 | | June 30, 2023 on or after August 1, 2009 and on or before
| 26 | | August 1, 2012 , (iii) supplies satisfactory evidence of the |
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| 1 | | employment, (iv)
completes at least 10 years of contributing | 2 | | service as a teacher as defined in
Section 16-106, and (v) pays | 3 | | the contribution required in subsection (d-5) of
Section | 4 | | 16-128. The member may apply for credit under this subsection | 5 | | and pay
the required contribution before completing the 10 | 6 | | years of contributing
service required under item (iv), but | 7 | | the credit may not be used until the
item (iv) contributing | 8 | | service requirement has been met.
| 9 | | (c) The service credits specified in this Section shall be | 10 | | granted only
if: (1) such service credits are not used for | 11 | | credit in any other statutory
tax-supported public employee | 12 | | retirement system other than the federal Social
Security | 13 | | program; and (2) the member makes the required contributions | 14 | | as
specified in Section 16-128. Except as provided in | 15 | | subsection (b-1) of
this Section, the service credit shall be | 16 | | effective as of the date the
required contributions are | 17 | | completed.
| 18 | | Any service credits granted under this Section shall | 19 | | terminate upon
cessation of membership for any cause.
| 20 | | Credit may not be granted under this Section covering any | 21 | | period for
which an age retirement or disability retirement | 22 | | allowance has been paid.
| 23 | | Credit may not be granted under this Section for service | 24 | | as an employee of an entity that provides substitute teaching | 25 | | services under Section 2-3.173 of the School Code and is not a | 26 | | school district. |
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| 1 | | (Source: P.A. 100-813, eff. 8-13-18.)
| 2 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 3 | | Sec. 16-158. Contributions by State and other employing | 4 | | units.
| 5 | | (a) The State shall make contributions to the System by | 6 | | means of
appropriations from the Common School Fund and other | 7 | | State funds of amounts
which, together with other employer | 8 | | contributions, employee contributions,
investment income, and | 9 | | other income, will be sufficient to meet the cost of
| 10 | | maintaining and administering the System on a 90% funded basis | 11 | | in accordance
with actuarial recommendations.
| 12 | | The Board shall determine the amount of State | 13 | | contributions required for
each fiscal year on the basis of | 14 | | the actuarial tables and other assumptions
adopted by the | 15 | | Board and the recommendations of the actuary, using the | 16 | | formula
in subsection (b-3).
| 17 | | (a-1) Annually, on or before November 15 until November | 18 | | 15, 2011, the Board shall certify to the
Governor the amount of | 19 | | the required State contribution for the coming fiscal
year. | 20 | | The certification under this subsection (a-1) shall include a | 21 | | copy of the actuarial recommendations
upon which it is based | 22 | | and shall specifically identify the System's projected State | 23 | | normal cost for that fiscal year.
| 24 | | On or before May 1, 2004, the Board shall recalculate and | 25 | | recertify to
the Governor the amount of the required State |
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| 1 | | contribution to the System for
State fiscal year 2005, taking | 2 | | into account the amounts appropriated to and
received by the | 3 | | System under subsection (d) of Section 7.2 of the General
| 4 | | Obligation Bond Act.
| 5 | | On or before July 1, 2005, the Board shall recalculate and | 6 | | recertify
to the Governor the amount of the required State
| 7 | | contribution to the System for State fiscal year 2006, taking | 8 | | into account the changes in required State contributions made | 9 | | by Public Act 94-4.
| 10 | | On or before April 1, 2011, the Board shall recalculate | 11 | | and recertify to the Governor the amount of the required State | 12 | | contribution to the System for State fiscal year 2011, | 13 | | applying the changes made by Public Act 96-889 to the System's | 14 | | assets and liabilities as of June 30, 2009 as though Public Act | 15 | | 96-889 was approved on that date. | 16 | | (a-5) On or before November 1 of each year, beginning | 17 | | November 1, 2012, the Board shall submit to the State Actuary, | 18 | | the Governor, and the General Assembly a proposed | 19 | | certification of the amount of the required State contribution | 20 | | to the System for the next fiscal year, along with all of the | 21 | | actuarial assumptions, calculations, and data upon which that | 22 | | proposed certification is based. On or before January 1 of | 23 | | each year, beginning January 1, 2013, the State Actuary shall | 24 | | issue a preliminary report concerning the proposed | 25 | | certification and identifying, if necessary, recommended | 26 | | changes in actuarial assumptions that the Board must consider |
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| 1 | | before finalizing its certification of the required State | 2 | | contributions. On or before January 15, 2013 and each January | 3 | | 15 thereafter, the Board shall certify to the Governor and the | 4 | | General Assembly the amount of the required State contribution | 5 | | for the next fiscal year. The Board's certification must note | 6 | | any deviations from the State Actuary's recommended changes, | 7 | | the reason or reasons for not following the State Actuary's | 8 | | recommended changes, and the fiscal impact of not following | 9 | | the State Actuary's recommended changes on the required State | 10 | | contribution. | 11 | | (a-10) By November 1, 2017, the Board shall recalculate | 12 | | and recertify to the State Actuary, the Governor, and the | 13 | | General Assembly the amount of the State contribution to the | 14 | | System for State fiscal year 2018, taking into account the | 15 | | changes in required State contributions made by Public Act | 16 | | 100-23. The State Actuary shall review the assumptions and | 17 | | valuations underlying the Board's revised certification and | 18 | | issue a preliminary report concerning the proposed | 19 | | recertification and identifying, if necessary, recommended | 20 | | changes in actuarial assumptions that the Board must consider | 21 | | before finalizing its certification of the required State | 22 | | contributions. The Board's final certification must note any | 23 | | deviations from the State Actuary's recommended changes, the | 24 | | reason or reasons for not following the State Actuary's | 25 | | recommended changes, and the fiscal impact of not following | 26 | | the State Actuary's recommended changes on the required State |
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| 1 | | contribution. | 2 | | (a-15) On or after June 15, 2019, but no later than June | 3 | | 30, 2019, the Board shall recalculate and recertify to the | 4 | | Governor and the General Assembly the amount of the State | 5 | | contribution to the System for State fiscal year 2019, taking | 6 | | into account the changes in required State contributions made | 7 | | by Public Act 100-587. The recalculation shall be made using | 8 | | assumptions adopted by the Board for the original fiscal year | 9 | | 2019 certification. The monthly voucher for the 12th month of | 10 | | fiscal year 2019 shall be paid by the Comptroller after the | 11 | | recertification required pursuant to this subsection is | 12 | | submitted to the Governor, Comptroller, and General Assembly. | 13 | | The recertification submitted to the General Assembly shall be | 14 | | filed with the Clerk of the House of Representatives and the | 15 | | Secretary of the Senate in electronic form only, in the manner | 16 | | that the Clerk and the Secretary shall direct. | 17 | | (b) Through State fiscal year 1995, the State | 18 | | contributions shall be
paid to the System in accordance with | 19 | | Section 18-7 of the School Code.
| 20 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 21 | | of each month,
or as soon thereafter as may be practicable, the | 22 | | Board shall submit vouchers
for payment of State contributions | 23 | | to the System, in a total monthly amount of
one-twelfth of the | 24 | | required annual State contribution certified under
subsection | 25 | | (a-1).
From March 5, 2004 (the
effective date of Public Act | 26 | | 93-665)
through June 30, 2004, the Board shall not submit |
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| 1 | | vouchers for the
remainder of fiscal year 2004 in excess of the | 2 | | fiscal year 2004
certified contribution amount determined | 3 | | under this Section
after taking into consideration the | 4 | | transfer to the System
under subsection (a) of Section 6z-61 | 5 | | of the State Finance Act.
These vouchers shall be paid by the | 6 | | State Comptroller and
Treasurer by warrants drawn on the funds | 7 | | appropriated to the System for that
fiscal year.
| 8 | | If in any month the amount remaining unexpended from all | 9 | | other appropriations
to the System for the applicable fiscal | 10 | | year (including the appropriations to
the System under Section | 11 | | 8.12 of the State Finance Act and Section 1 of the
State | 12 | | Pension Funds Continuing Appropriation Act) is less than the | 13 | | amount
lawfully vouchered under this subsection, the | 14 | | difference shall be paid from the
Common School Fund under the | 15 | | continuing appropriation authority provided in
Section 1.1 of | 16 | | the State Pension Funds Continuing Appropriation Act.
| 17 | | (b-2) Allocations from the Common School Fund apportioned | 18 | | to school
districts not coming under this System shall not be | 19 | | diminished or affected by
the provisions of this Article.
| 20 | | (b-3) For State fiscal years 2012 through 2045, the | 21 | | minimum contribution
to the System to be made by the State for | 22 | | each fiscal year shall be an amount
determined by the System to | 23 | | be sufficient to bring the total assets of the
System up to 90% | 24 | | of the total actuarial liabilities of the System by the end of
| 25 | | State fiscal year 2045. In making these determinations, the | 26 | | required State
contribution shall be calculated each year as a |
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| 1 | | level percentage of payroll
over the years remaining to and | 2 | | including fiscal year 2045 and shall be
determined under the | 3 | | projected unit credit actuarial cost method.
| 4 | | For each of State fiscal years 2018, 2019, and 2020, the | 5 | | State shall make an additional contribution to the System | 6 | | equal to 2% of the total payroll of each employee who is deemed | 7 | | to have elected the benefits under Section 1-161 or who has | 8 | | made the election under subsection (c) of Section 1-161. | 9 | | A change in an actuarial or investment assumption that | 10 | | increases or
decreases the required State contribution and | 11 | | first
applies in State fiscal year 2018 or thereafter shall be
| 12 | | implemented in equal annual amounts over a 5-year period
| 13 | | beginning in the State fiscal year in which the actuarial
| 14 | | change first applies to the required State contribution. | 15 | | A change in an actuarial or investment assumption that | 16 | | increases or
decreases the required State contribution and | 17 | | first
applied to the State contribution in fiscal year 2014, | 18 | | 2015, 2016, or 2017 shall be
implemented: | 19 | | (i) as already applied in State fiscal years before | 20 | | 2018; and | 21 | | (ii) in the portion of the 5-year period beginning in | 22 | | the State fiscal year in which the actuarial
change first | 23 | | applied that occurs in State fiscal year 2018 or | 24 | | thereafter, by calculating the change in equal annual | 25 | | amounts over that 5-year period and then implementing it | 26 | | at the resulting annual rate in each of the remaining |
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| 1 | | fiscal years in that 5-year period. | 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 | 5 | | increments so that by State fiscal year 2011, the State is
| 6 | | contributing at the rate required under this Section; except | 7 | | that in the
following specified State fiscal years, the State | 8 | | contribution to the System
shall not be less than the | 9 | | following indicated percentages of the applicable
employee | 10 | | payroll, even if the indicated percentage will produce a State
| 11 | | contribution in excess of the amount otherwise required under | 12 | | this subsection
and subsection (a), and notwithstanding any | 13 | | contrary certification made under
subsection (a-1) before May | 14 | | 27, 1998 (the effective date of Public Act 90-582):
10.02% in | 15 | | FY 1999;
10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY | 16 | | 2002;
12.86% in FY 2003; and
13.56% in FY 2004.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State
contribution for State fiscal year 2006 | 19 | | is $534,627,700.
| 20 | | Notwithstanding any other provision of this Article, the | 21 | | total required State
contribution for State fiscal year 2007 | 22 | | is $738,014,500.
| 23 | | For each of State fiscal years 2008 through 2009, the | 24 | | State contribution to
the System, as a percentage of the | 25 | | applicable employee payroll, shall be
increased in equal | 26 | | annual increments from the required State contribution for |
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| 1 | | State fiscal year 2007, so that by State fiscal year 2011, the
| 2 | | State is contributing at the rate otherwise required under | 3 | | this Section.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State contribution for State fiscal year 2010 | 6 | | is $2,089,268,000 and shall be made from the proceeds of bonds | 7 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 8 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 9 | | expenses determined by the System's share of total bond | 10 | | proceeds, (ii) any amounts received from the Common School | 11 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 12 | | proceeds due to the issuance of discounted bonds, if | 13 | | applicable. | 14 | | Notwithstanding any other provision of this Article, the
| 15 | | total required State contribution for State fiscal year 2011 | 16 | | is
the amount recertified by the System on or before April 1, | 17 | | 2011 pursuant to subsection (a-1) of this Section and shall be | 18 | | made from the proceeds of bonds
sold in fiscal year 2011 | 19 | | pursuant to Section 7.2 of the General
Obligation Bond Act, | 20 | | less (i) the pro rata share of bond sale
expenses determined by | 21 | | the System's share of total bond
proceeds, (ii) any amounts | 22 | | received from the Common School Fund
in fiscal year 2011, and | 23 | | (iii) any reduction in bond proceeds
due to the issuance of | 24 | | discounted bonds, if applicable. This amount shall include, in | 25 | | addition to the amount certified by the System, an amount | 26 | | necessary to meet employer contributions required by the State |
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| 1 | | as an employer under paragraph (e) of this Section, which may | 2 | | also be used by the System for contributions required by | 3 | | paragraph (a) of Section 16-127. | 4 | | Beginning in State fiscal year 2046, the minimum State | 5 | | contribution for
each fiscal year shall be the amount needed | 6 | | to maintain the total assets of
the System at 90% of the total | 7 | | actuarial liabilities of the System.
| 8 | | Amounts received by the System pursuant to Section 25 of | 9 | | the Budget Stabilization Act or Section 8.12 of the State | 10 | | Finance Act in any fiscal year do not reduce and do not | 11 | | constitute payment of any portion of the minimum State | 12 | | contribution required under this Article in that fiscal year. | 13 | | Such amounts shall not reduce, and shall not be included in the | 14 | | calculation of, the required State contributions under this | 15 | | Article in any future year until the System has reached a | 16 | | funding ratio of at least 90%. A reference in this Article to | 17 | | the "required State contribution" or any substantially similar | 18 | | term does not include or apply to any amounts payable to the | 19 | | System under Section 25 of the Budget Stabilization Act. | 20 | | Notwithstanding any other provision of this Section, the | 21 | | required State
contribution for State fiscal year 2005 and for | 22 | | fiscal year 2008 and each fiscal year thereafter, as
| 23 | | calculated under this Section and
certified under subsection | 24 | | (a-1), shall not exceed an amount equal to (i) the
amount of | 25 | | the required State contribution that would have been | 26 | | calculated under
this Section for that fiscal year if the |
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| 1 | | System had not received any payments
under subsection (d) of | 2 | | Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 3 | | portion of the State's total debt service payments for that | 4 | | fiscal
year on the bonds issued in fiscal year 2003 for the | 5 | | purposes of that Section 7.2, as determined
and certified by | 6 | | the Comptroller, that is the same as the System's portion of
| 7 | | the total moneys distributed under subsection (d) of Section | 8 | | 7.2 of the General
Obligation Bond Act. In determining this | 9 | | maximum for State fiscal years 2008 through 2010, however, the | 10 | | amount referred to in item (i) shall be increased, as a | 11 | | percentage of the applicable employee payroll, in equal | 12 | | increments calculated from the sum of the required State | 13 | | contribution for State fiscal year 2007 plus the applicable | 14 | | portion of the State's total debt service payments for fiscal | 15 | | year 2007 on the bonds issued in fiscal year 2003 for the | 16 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 17 | | that, by State fiscal year 2011, the
State is contributing at | 18 | | the rate otherwise required under this Section.
| 19 | | (b-4) Beginning in fiscal year 2018, each employer under | 20 | | this Article shall pay to the System a required contribution | 21 | | determined as a percentage of projected payroll and sufficient | 22 | | to produce an annual amount equal to: | 23 | | (i) for each of fiscal years 2018, 2019, and 2020, the | 24 | | defined benefit normal cost of the defined benefit plan, | 25 | | less the employee contribution, for each employee of that | 26 | | employer who has elected or who is deemed to have elected |
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| 1 | | the benefits under Section 1-161 or who has made the | 2 | | election under subsection (b) of Section 1-161; for fiscal | 3 | | year 2021 and each fiscal year thereafter, the defined | 4 | | benefit normal cost of the defined benefit plan, less the | 5 | | employee contribution, plus 2%, for each employee of that | 6 | | employer who has elected or who is deemed to have elected | 7 | | the benefits under Section 1-161 or who has made the | 8 | | election under subsection (b) of Section 1-161; plus | 9 | | (ii) the amount required for that fiscal year to | 10 | | amortize any unfunded actuarial accrued liability | 11 | | associated with the present value of liabilities | 12 | | attributable to the employer's account under Section | 13 | | 16-158.3, determined
as a level percentage of payroll over | 14 | | a 30-year rolling amortization period. | 15 | | In determining contributions required under item (i) of | 16 | | this subsection, the System shall determine an aggregate rate | 17 | | for all employers, expressed as a percentage of projected | 18 | | payroll. | 19 | | In determining the contributions required under item (ii) | 20 | | of this subsection, the amount shall be computed by the System | 21 | | on the basis of the actuarial assumptions and tables used in | 22 | | the most recent actuarial valuation of the System that is | 23 | | available at the time of the computation. | 24 | | The contributions required under this subsection (b-4) | 25 | | shall be paid by an employer concurrently with that employer's | 26 | | payroll payment period. The State, as the actual employer of |
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| 1 | | an employee, shall make the required contributions under this | 2 | | subsection. | 3 | | (c) Payment of the required State contributions and of all | 4 | | pensions,
retirement annuities, death benefits, refunds, and | 5 | | other benefits granted
under or assumed by this System, and | 6 | | all expenses in connection with the
administration and | 7 | | operation thereof, are obligations of the State.
| 8 | | If members are paid from special trust or federal funds | 9 | | which are
administered by the employing unit, whether school | 10 | | district or other
unit, the employing unit shall pay to the | 11 | | System from such
funds the full accruing retirement costs | 12 | | based upon that
service, which, beginning July 1, 2017, shall | 13 | | be at a rate, expressed as a percentage of salary, equal to the | 14 | | total employer's normal cost, expressed as a percentage of | 15 | | payroll, as determined by the System. Employer contributions, | 16 | | based on
salary paid to members from federal funds, may be | 17 | | forwarded by the distributing
agency of the State of Illinois | 18 | | to the System prior to allocation, in an
amount determined in | 19 | | accordance with guidelines established by such
agency and the | 20 | | System. Any contribution for fiscal year 2015 collected as a | 21 | | result of the change made by Public Act 98-674 shall be | 22 | | considered a State contribution under subsection (b-3) of this | 23 | | Section.
| 24 | | (d) Effective July 1, 1986, any employer of a teacher as | 25 | | defined in
paragraph (8) of Section 16-106 shall pay the | 26 | | employer's normal cost
of benefits based upon the teacher's |
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| 1 | | service, in addition to
employee contributions, as determined | 2 | | by the System. Such employer
contributions shall be forwarded | 3 | | monthly in accordance with guidelines
established by the | 4 | | System.
| 5 | | However, with respect to benefits granted under Section | 6 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 7 | | of Section 16-106, the
employer's contribution shall be 12% | 8 | | (rather than 20%) of the member's
highest annual salary rate | 9 | | for each year of creditable service granted, and
the employer | 10 | | shall also pay the required employee contribution on behalf of
| 11 | | the teacher. For the purposes of Sections 16-133.4 and | 12 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 13 | | 16-106 who is serving in that capacity
while on leave of | 14 | | absence from another employer under this Article shall not
be | 15 | | considered an employee of the employer from which the teacher | 16 | | is on leave.
| 17 | | (e) Beginning July 1, 1998, every employer of a teacher
| 18 | | shall pay to the System an employer contribution computed as | 19 | | follows:
| 20 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 21 | | employer
contribution shall be equal to 0.3% of each | 22 | | teacher's salary.
| 23 | | (2) Beginning July 1, 1999 and thereafter, the | 24 | | employer
contribution shall be equal to 0.58% of each | 25 | | teacher's salary.
| 26 | | The school district or other employing unit may pay these |
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| 1 | | employer
contributions out of any source of funding available | 2 | | for that purpose and
shall forward the contributions to the | 3 | | System on the schedule established
for the payment of member | 4 | | contributions.
| 5 | | These employer contributions are intended to offset a | 6 | | portion of the cost
to the System of the increases in | 7 | | retirement benefits resulting from Public Act 90-582.
| 8 | | Each employer of teachers is entitled to a credit against | 9 | | the contributions
required under this subsection (e) with | 10 | | respect to salaries paid to teachers
for the period January 1, | 11 | | 2002 through June 30, 2003, equal to the amount paid
by that | 12 | | employer under subsection (a-5) of Section 6.6 of the State | 13 | | Employees
Group Insurance Act of 1971 with respect to salaries | 14 | | paid to teachers for that
period.
| 15 | | The additional 1% employee contribution required under | 16 | | Section 16-152 by Public Act 90-582
is the responsibility of | 17 | | the teacher and not the
teacher's employer, unless the | 18 | | employer agrees, through collective bargaining
or otherwise, | 19 | | to make the contribution on behalf of the teacher.
| 20 | | If an employer is required by a contract in effect on May | 21 | | 1, 1998 between the
employer and an employee organization to | 22 | | pay, on behalf of all its full-time
employees
covered by this | 23 | | Article, all mandatory employee contributions required under
| 24 | | this Article, then the employer shall be excused from paying | 25 | | the employer
contribution required under this subsection (e) | 26 | | for the balance of the term
of that contract. The employer and |
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| 1 | | the employee organization shall jointly
certify to the System | 2 | | the existence of the contractual requirement, in such
form as | 3 | | the System may prescribe. This exclusion shall cease upon the
| 4 | | termination, extension, or renewal of the contract at any time | 5 | | after May 1,
1998.
| 6 | | (f) If June 4, 2018 (Public Act 100-587) the amount of a | 7 | | teacher's salary for any school year used to determine final | 8 | | average salary exceeds the member's annual full-time salary | 9 | | rate with the same employer for the previous school year by | 10 | | more than 6%, the teacher's employer shall pay to the System, | 11 | | in addition to all other payments required under this Section | 12 | | and in accordance with guidelines established by the System, | 13 | | the present value of the increase in benefits resulting from | 14 | | the portion of the increase in salary that is in excess of 6%. | 15 | | This present value shall be computed by the System on the basis | 16 | | of the actuarial assumptions and tables used in the most | 17 | | recent actuarial valuation of the System that is available at | 18 | | the time of the computation. If a teacher's salary for the | 19 | | 2005-2006 school year is used to determine final average | 20 | | salary under this subsection (f), then the changes made to | 21 | | this subsection (f) by Public Act 94-1057 shall apply in | 22 | | calculating whether the increase in his or her salary is in | 23 | | excess of 6%. For the purposes of this Section, change in | 24 | | employment under Section 10-21.12 of the School Code on or | 25 | | after June 1, 2005 shall constitute a change in employer. The | 26 | | System may require the employer to provide any pertinent |
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| 1 | | information or documentation.
The changes made to this | 2 | | subsection (f) by Public Act 94-1111 apply without regard to | 3 | | whether the teacher was in service on or after its effective | 4 | | date.
| 5 | | Whenever it determines that a payment is or may be | 6 | | required under this subsection, the System shall calculate the | 7 | | amount of the payment and bill the employer for that amount. | 8 | | The bill shall specify the calculations used to determine the | 9 | | amount due. If the employer disputes the amount of the bill, it | 10 | | may, within 30 days after receipt of the bill, apply to the | 11 | | System in writing for a recalculation. The application must | 12 | | specify in detail the grounds of the dispute and, if the | 13 | | employer asserts that the calculation is subject to subsection | 14 | | (g) , (g-5), or (h) of this Section, must include an affidavit | 15 | | setting forth and attesting to all facts within the employer's | 16 | | knowledge that are pertinent to the applicability of that | 17 | | subsection. Upon receiving a timely application for | 18 | | recalculation, the System shall review the application and, if | 19 | | appropriate, recalculate the amount due.
| 20 | | The employer contributions required under this subsection | 21 | | (f) may be paid in the form of a lump sum within 90 days after | 22 | | receipt of the bill. If the employer contributions are not | 23 | | paid within 90 days after receipt of the bill, then interest | 24 | | will be charged at a rate equal to the System's annual | 25 | | actuarially assumed rate of return on investment compounded | 26 | | annually from the 91st day after receipt of the bill. Payments |
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| 1 | | must be concluded within 3 years after the employer's receipt | 2 | | of the bill.
| 3 | | (f-1) (Blank). June 4, 2018 (Public Act 100-587) | 4 | | (g) This subsection (g) applies only to payments made or | 5 | | salary increases given on or after June 1, 2005 but before July | 6 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 7 | | require the System to refund any payments received before
July | 8 | | 31, 2006 (the effective date of Public Act 94-1057). | 9 | | When assessing payment for any amount due under subsection | 10 | | (f), the System shall exclude salary increases paid to | 11 | | teachers under contracts or collective bargaining agreements | 12 | | entered into, amended, or renewed before June 1, 2005.
| 13 | | When assessing payment for any amount due under subsection | 14 | | (f), the System shall exclude salary increases paid to a | 15 | | teacher at a time when the teacher is 10 or more years from | 16 | | retirement eligibility under Section 16-132 or 16-133.2.
| 17 | | When assessing payment for any amount due under subsection | 18 | | (f), the System shall exclude salary increases resulting from | 19 | | overload work, including summer school, when the school | 20 | | district has certified to the System, and the System has | 21 | | approved the certification, that (i) the overload work is for | 22 | | the sole purpose of classroom instruction in excess of the | 23 | | standard number of classes for a full-time teacher in a school | 24 | | district during a school year and (ii) the salary increases | 25 | | are equal to or less than the rate of pay for classroom | 26 | | instruction computed on the teacher's current salary and work |
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| 1 | | schedule.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (f), the System shall exclude a salary increase resulting from | 4 | | a promotion (i) for which the employee is required to hold a | 5 | | certificate or supervisory endorsement issued by the State | 6 | | Teacher Certification Board that is a different certification | 7 | | or supervisory endorsement than is required for the teacher's | 8 | | previous position and (ii) to a position that has existed and | 9 | | been filled by a member for no less than one complete academic | 10 | | year and the salary increase from the promotion is an increase | 11 | | that results in an amount no greater than the lesser of the | 12 | | average salary paid for other similar positions in the | 13 | | district requiring the same certification or the amount | 14 | | stipulated in the collective bargaining agreement for a | 15 | | similar position requiring the same certification.
| 16 | | When assessing payment for any amount due under subsection | 17 | | (f), the System shall exclude any payment to the teacher from | 18 | | the State of Illinois or the State Board of Education over | 19 | | which the employer does not have discretion, notwithstanding | 20 | | that the payment is included in the computation of final | 21 | | average salary.
| 22 | | (g-5) When assessing payment for any amount due under | 23 | | subsection (f), the System shall exclude salary increases | 24 | | resulting from teaching summer school on or after May 1, 2021 | 25 | | and before September 15, 2022. | 26 | | (h) When assessing payment for any amount due under |
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| 1 | | subsection (f), the System shall exclude any salary increase | 2 | | described in subsection (g) of this Section given on or after | 3 | | July 1, 2011 but before July 1, 2014 under a contract or | 4 | | collective bargaining agreement entered into, amended, or | 5 | | renewed on or after June 1, 2005 but before July 1, 2011. | 6 | | Notwithstanding any other provision of this Section, any | 7 | | payments made or salary increases given after June 30, 2014 | 8 | | shall be used in assessing payment for any amount due under | 9 | | subsection (f) of this Section.
| 10 | | (i) 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 | 13 | | information: | 14 | | (1) The number of recalculations required by the | 15 | | changes made to this Section by Public Act 94-1057 for | 16 | | each employer. | 17 | | (2) The dollar amount by which each employer's | 18 | | contribution to the System was changed due to | 19 | | recalculations required by Public Act 94-1057. | 20 | | (3) The total amount the System received from each | 21 | | employer as a result of the changes made to this Section by | 22 | | Public Act 94-4. | 23 | | (4) The increase in the required State contribution | 24 | | resulting from the changes made to this Section by Public | 25 | | Act 94-1057.
| 26 | | (i-5) For school years beginning on or after July 1, 2017, |
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| 1 | | if the amount of a participant's salary for any school year | 2 | | exceeds the amount of the salary set for the Governor, the | 3 | | participant's employer shall pay to the System, in addition to | 4 | | all other payments required under this Section and in | 5 | | accordance with guidelines established by the System, an | 6 | | amount determined by the System to be equal to the employer | 7 | | normal cost, as established by the System and expressed as a | 8 | | total percentage of payroll, multiplied by the amount of | 9 | | salary in excess of the amount of the salary set for the | 10 | | Governor. This amount shall be computed by the System on the | 11 | | basis of the actuarial assumptions and tables used in the most | 12 | | recent actuarial valuation of the System that is available at | 13 | | the time of the computation. The System may require the | 14 | | employer to provide any pertinent information or | 15 | | documentation. | 16 | | Whenever it determines that a payment is or may be | 17 | | required under this subsection, the System shall calculate the | 18 | | amount of the payment and bill the employer for that amount. | 19 | | The bill shall specify the calculations used to determine the | 20 | | amount due. If the employer disputes the amount of the bill, it | 21 | | may, within 30 days after receipt of the bill, apply to the | 22 | | System in writing for a recalculation. The application must | 23 | | specify in detail the grounds of the dispute. Upon receiving a | 24 | | timely application for recalculation, the System shall review | 25 | | the application and, if appropriate, recalculate the amount | 26 | | due. |
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| 1 | | The employer contributions required under this subsection | 2 | | 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 | 4 | | paid within 90 days after receipt of the bill, then interest | 5 | | will be charged at a rate equal to the System's annual | 6 | | actuarially assumed rate of return on investment compounded | 7 | | annually from the 91st day after receipt of the bill. Payments | 8 | | must be concluded within 3 years after the employer's receipt | 9 | | of the bill. | 10 | | (j) For purposes of determining the required State | 11 | | contribution to the System, the value of the System's assets | 12 | | shall be equal to the actuarial value of the System's assets, | 13 | | which shall be calculated as follows: | 14 | | As of June 30, 2008, the actuarial value of the System's | 15 | | assets shall be equal to the market value of the assets as of | 16 | | that date. In determining the actuarial value of the System's | 17 | | assets for fiscal years after June 30, 2008, any actuarial | 18 | | gains or losses from investment return incurred in a fiscal | 19 | | year shall be recognized in equal annual amounts over the | 20 | | 5-year period following that fiscal year. | 21 | | (k) For purposes of determining the required State | 22 | | contribution to the system for a particular year, the | 23 | | actuarial value of assets shall be assumed to earn a rate of | 24 | | return equal to the system's actuarially assumed rate of | 25 | | return. | 26 | | (Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; |
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| 1 | | 100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff. | 2 | | 8-14-18; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; revised | 3 | | 8-13-19.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.".
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