Full Text of HB0300 103rd General Assembly
HB0300ham002 103RD GENERAL ASSEMBLY | Rep. Katie Stuart Filed: 4/26/2023
| | 10300HB0300ham002 | | LRB103 03827 RJT 60742 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 300
| 2 | | AMENDMENT NO. ______. Amend House Bill 300 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 16-158 as follows:
| 6 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 7 | | Sec. 16-158. Contributions by State and other employing | 8 | | units.
| 9 | | (a) The State shall make contributions to the System by | 10 | | means of
appropriations from the Common School Fund and other | 11 | | State funds of amounts
which, together with other employer | 12 | | contributions, employee contributions,
investment income, and | 13 | | other income, will be sufficient to meet the cost of
| 14 | | maintaining and administering the System on a 90% funded basis | 15 | | in accordance
with actuarial recommendations.
| 16 | | The Board shall determine the amount of State |
| | | 10300HB0300ham002 | - 2 - | LRB103 03827 RJT 60742 a |
|
| 1 | | contributions required for
each fiscal year on the basis of | 2 | | the actuarial tables and other assumptions
adopted by the | 3 | | Board and the recommendations of the actuary, using the | 4 | | formula
in subsection (b-3).
| 5 | | (a-1) Annually, on or before November 15 until November | 6 | | 15, 2011, the Board shall certify to the
Governor the amount of | 7 | | the required State contribution for the coming fiscal
year. | 8 | | The certification under this subsection (a-1) shall include a | 9 | | copy of the actuarial recommendations
upon which it is based | 10 | | and shall specifically identify the System's projected State | 11 | | normal cost for that fiscal year.
| 12 | | On or before May 1, 2004, the Board shall recalculate and | 13 | | recertify to
the Governor the amount of the required State | 14 | | contribution to the System for
State fiscal year 2005, taking | 15 | | into account the amounts appropriated to and
received by the | 16 | | System under subsection (d) of Section 7.2 of the General
| 17 | | Obligation Bond Act.
| 18 | | On or before July 1, 2005, the Board shall recalculate and | 19 | | recertify
to the Governor the amount of the required State
| 20 | | contribution to the System for State fiscal year 2006, taking | 21 | | into account the changes in required State contributions made | 22 | | by Public Act 94-4.
| 23 | | On or before April 1, 2011, the Board shall recalculate | 24 | | and recertify to the Governor the amount of the required State | 25 | | contribution to the System for State fiscal year 2011, | 26 | | applying the changes made by Public Act 96-889 to the System's |
| | | 10300HB0300ham002 | - 3 - | LRB103 03827 RJT 60742 a |
|
| 1 | | assets and liabilities as of June 30, 2009 as though Public Act | 2 | | 96-889 was approved on that date. | 3 | | (a-5) On or before November 1 of each year, beginning | 4 | | November 1, 2012, the Board shall submit to the State Actuary, | 5 | | the Governor, and the General Assembly a proposed | 6 | | certification of the amount of the required State contribution | 7 | | to the System for the next fiscal year, along with all of the | 8 | | actuarial assumptions, calculations, and data upon which that | 9 | | proposed certification is based. On or before January 1 of | 10 | | each year, beginning January 1, 2013, the State Actuary shall | 11 | | issue a preliminary report concerning the proposed | 12 | | certification and identifying, if necessary, recommended | 13 | | changes in actuarial assumptions that the Board must consider | 14 | | before finalizing its certification of the required State | 15 | | contributions. On or before January 15, 2013 and each January | 16 | | 15 thereafter, the Board shall certify to the Governor and the | 17 | | General Assembly the amount of the required State contribution | 18 | | for the next fiscal year. The Board's certification must note | 19 | | any deviations from the State Actuary's recommended changes, | 20 | | the reason or reasons for not following the State Actuary's | 21 | | recommended changes, and the fiscal impact of not following | 22 | | the State Actuary's recommended changes on the required State | 23 | | contribution. | 24 | | (a-10) By November 1, 2017, the Board shall recalculate | 25 | | and recertify to the State Actuary, the Governor, and the | 26 | | General Assembly the amount of the State contribution to the |
| | | 10300HB0300ham002 | - 4 - | LRB103 03827 RJT 60742 a |
|
| 1 | | System for State fiscal year 2018, taking into account the | 2 | | changes in required State contributions made by Public Act | 3 | | 100-23. The State Actuary shall review the assumptions and | 4 | | valuations underlying the Board's revised certification and | 5 | | issue a preliminary report concerning the proposed | 6 | | recertification and identifying, if necessary, recommended | 7 | | changes in actuarial assumptions that the Board must consider | 8 | | before finalizing its certification of the required State | 9 | | contributions. The Board's final certification must note any | 10 | | deviations from the State Actuary's recommended changes, the | 11 | | reason or reasons for not following the State Actuary's | 12 | | recommended changes, and the fiscal impact of not following | 13 | | the State Actuary's recommended changes on the required State | 14 | | contribution. | 15 | | (a-15) On or after June 15, 2019, but no later than June | 16 | | 30, 2019, the Board shall recalculate and recertify to the | 17 | | Governor and the General Assembly the amount of the State | 18 | | contribution to the System for State fiscal year 2019, taking | 19 | | into account the changes in required State contributions made | 20 | | by Public Act 100-587. The recalculation shall be made using | 21 | | assumptions adopted by the Board for the original fiscal year | 22 | | 2019 certification. The monthly voucher for the 12th month of | 23 | | fiscal year 2019 shall be paid by the Comptroller after the | 24 | | recertification required pursuant to this subsection is | 25 | | submitted to the Governor, Comptroller, and General Assembly. | 26 | | The recertification submitted to the General Assembly shall be |
| | | 10300HB0300ham002 | - 5 - | LRB103 03827 RJT 60742 a |
|
| 1 | | filed with the Clerk of the House of Representatives and the | 2 | | Secretary of the Senate in electronic form only, in the manner | 3 | | that the Clerk and the Secretary shall direct. | 4 | | (b) Through State fiscal year 1995, the State | 5 | | contributions shall be
paid to the System in accordance with | 6 | | Section 18-7 of the School Code.
| 7 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 8 | | of each month,
or as soon thereafter as may be practicable, the | 9 | | Board shall submit vouchers
for payment of State contributions | 10 | | to the System, in a total monthly amount of
one-twelfth of the | 11 | | required annual State contribution certified under
subsection | 12 | | (a-1).
From March 5, 2004 (the
effective date of Public Act | 13 | | 93-665)
through June 30, 2004, the Board shall not submit | 14 | | vouchers for the
remainder of fiscal year 2004 in excess of the | 15 | | fiscal year 2004
certified contribution amount determined | 16 | | under this Section
after taking into consideration the | 17 | | transfer to the System
under subsection (a) of Section 6z-61 | 18 | | of the State Finance Act.
These vouchers shall be paid by the | 19 | | State Comptroller and
Treasurer by warrants drawn on the funds | 20 | | appropriated to the System for that
fiscal year.
| 21 | | If in any month the amount remaining unexpended from all | 22 | | other appropriations
to the System for the applicable fiscal | 23 | | year (including the appropriations to
the System under Section | 24 | | 8.12 of the State Finance Act and Section 1 of the
State | 25 | | Pension Funds Continuing Appropriation Act) is less than the | 26 | | amount
lawfully vouchered under this subsection, the |
| | | 10300HB0300ham002 | - 6 - | LRB103 03827 RJT 60742 a |
|
| 1 | | difference shall be paid from the
Common School Fund under the | 2 | | continuing appropriation authority provided in
Section 1.1 of | 3 | | the State Pension Funds Continuing Appropriation Act.
| 4 | | (b-2) Allocations from the Common School Fund apportioned | 5 | | to school
districts not coming under this System shall not be | 6 | | diminished or affected by
the provisions of this Article.
| 7 | | (b-3) For State fiscal years 2012 through 2045, the | 8 | | minimum contribution
to the System to be made by the State for | 9 | | each fiscal year shall be an amount
determined by the System to | 10 | | be sufficient to bring the total assets of the
System up to 90% | 11 | | of the total actuarial liabilities of the System by the end of
| 12 | | State fiscal year 2045. In making these determinations, the | 13 | | required State
contribution shall be calculated each year as a | 14 | | level percentage of payroll
over the years remaining to and | 15 | | including fiscal year 2045 and shall be
determined under the | 16 | | projected unit credit actuarial cost method.
| 17 | | For each of State fiscal years 2018, 2019, and 2020, the | 18 | | State shall make an additional contribution to the System | 19 | | equal to 2% of the total payroll of each employee who is deemed | 20 | | to have elected the benefits under Section 1-161 or who has | 21 | | made the election under subsection (c) of Section 1-161. | 22 | | A change in an actuarial or investment assumption that | 23 | | increases or
decreases the required State contribution and | 24 | | first
applies in State fiscal year 2018 or thereafter shall be
| 25 | | implemented in equal annual amounts over a 5-year period
| 26 | | beginning in the State fiscal year in which the actuarial
|
| | | 10300HB0300ham002 | - 7 - | LRB103 03827 RJT 60742 a |
|
| 1 | | change first applies to the required State contribution. | 2 | | A change in an actuarial or investment assumption that | 3 | | increases or
decreases the required State contribution and | 4 | | first
applied to the State contribution in fiscal year 2014, | 5 | | 2015, 2016, or 2017 shall be
implemented: | 6 | | (i) as already applied in State fiscal years before | 7 | | 2018; and | 8 | | (ii) in the portion of the 5-year period beginning in | 9 | | the State fiscal year in which the actuarial
change first | 10 | | applied that occurs in State fiscal year 2018 or | 11 | | thereafter, by calculating the change in equal annual | 12 | | amounts over that 5-year period and then implementing it | 13 | | at the resulting annual rate in each of the remaining | 14 | | fiscal years in that 5-year period. | 15 | | For State fiscal years 1996 through 2005, the State | 16 | | contribution to the
System, as a percentage of the applicable | 17 | | employee payroll, shall be increased
in equal annual | 18 | | increments so that by State fiscal year 2011, the State is
| 19 | | contributing at the rate required under this Section; except | 20 | | that in the
following specified State fiscal years, the State | 21 | | contribution to the System
shall not be less than the | 22 | | following indicated percentages of the applicable
employee | 23 | | payroll, even if the indicated percentage will produce a State
| 24 | | contribution in excess of the amount otherwise required under | 25 | | this subsection
and subsection (a), and notwithstanding any | 26 | | contrary certification made under
subsection (a-1) before May |
| | | 10300HB0300ham002 | - 8 - | LRB103 03827 RJT 60742 a |
|
| 1 | | 27, 1998 (the effective date of Public Act 90-582):
10.02% in | 2 | | FY 1999;
10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY | 3 | | 2002;
12.86% in FY 2003; and
13.56% in FY 2004.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2006 | 6 | | is $534,627,700.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution for State fiscal year 2007 | 9 | | is $738,014,500.
| 10 | | For each of State fiscal years 2008 through 2009, the | 11 | | State contribution to
the System, as a percentage of the | 12 | | applicable employee payroll, shall be
increased in equal | 13 | | annual increments from the required State contribution for | 14 | | State fiscal year 2007, so that by State fiscal year 2011, the
| 15 | | State is contributing at the rate otherwise required under | 16 | | this Section.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State contribution for State fiscal year 2010 | 19 | | is $2,089,268,000 and shall be made from the proceeds of bonds | 20 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 21 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 22 | | expenses determined by the System's share of total bond | 23 | | proceeds, (ii) any amounts received from the Common School | 24 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 25 | | proceeds due to the issuance of discounted bonds, if | 26 | | applicable. |
| | | 10300HB0300ham002 | - 9 - | LRB103 03827 RJT 60742 a |
|
| 1 | | Notwithstanding any other provision of this Article, the
| 2 | | total required State contribution for State fiscal year 2011 | 3 | | is
the amount recertified by the System on or before April 1, | 4 | | 2011 pursuant to subsection (a-1) of this Section and shall be | 5 | | made from the proceeds of bonds
sold in fiscal year 2011 | 6 | | pursuant to Section 7.2 of the General
Obligation Bond Act, | 7 | | less (i) the pro rata share of bond sale
expenses determined by | 8 | | the System's share of total bond
proceeds, (ii) any amounts | 9 | | received from the Common School Fund
in fiscal year 2011, and | 10 | | (iii) any reduction in bond proceeds
due to the issuance of | 11 | | discounted bonds, if applicable. This amount shall include, in | 12 | | addition to the amount certified by the System, an amount | 13 | | necessary to meet employer contributions required by the State | 14 | | as an employer under paragraph (e) of this Section, which may | 15 | | also be used by the System for contributions required by | 16 | | paragraph (a) of Section 16-127. | 17 | | Beginning in State fiscal year 2046, the minimum State | 18 | | contribution for
each fiscal year shall be the amount needed | 19 | | to maintain the total assets of
the System at 90% of the total | 20 | | actuarial liabilities of the System.
| 21 | | Amounts received by the System pursuant to Section 25 of | 22 | | the Budget Stabilization Act or Section 8.12 of the State | 23 | | Finance Act in any fiscal year do not reduce and do not | 24 | | constitute payment of any portion of the minimum State | 25 | | contribution required under this Article in that fiscal year. | 26 | | Such amounts shall not reduce, and shall not be included in the |
| | | 10300HB0300ham002 | - 10 - | LRB103 03827 RJT 60742 a |
|
| 1 | | calculation of, the required State contributions under this | 2 | | Article in any future year until the System has reached a | 3 | | funding ratio of at least 90%. A reference in this Article to | 4 | | the "required State contribution" or any substantially similar | 5 | | term does not include or apply to any amounts payable to the | 6 | | System under Section 25 of the Budget Stabilization Act. | 7 | | Notwithstanding any other provision of this Section, the | 8 | | required State
contribution for State fiscal year 2005 and for | 9 | | fiscal year 2008 and each fiscal year thereafter, as
| 10 | | calculated under this Section and
certified under subsection | 11 | | (a-1), shall not exceed an amount equal to (i) the
amount of | 12 | | the required State contribution that would have been | 13 | | calculated under
this Section for that fiscal year if the | 14 | | System had not received any payments
under subsection (d) of | 15 | | Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 16 | | portion of the State's total debt service payments for that | 17 | | fiscal
year on the bonds issued in fiscal year 2003 for the | 18 | | purposes of that Section 7.2, as determined
and certified by | 19 | | the Comptroller, that is the same as the System's portion of
| 20 | | the total moneys distributed under subsection (d) of Section | 21 | | 7.2 of the General
Obligation Bond Act. In determining this | 22 | | maximum for State fiscal years 2008 through 2010, however, the | 23 | | amount referred to in item (i) shall be increased, as a | 24 | | percentage of the applicable employee payroll, in equal | 25 | | increments calculated from the sum of the required State | 26 | | contribution for State fiscal year 2007 plus the applicable |
| | | 10300HB0300ham002 | - 11 - | LRB103 03827 RJT 60742 a |
|
| 1 | | portion of the State's total debt service payments for fiscal | 2 | | year 2007 on the bonds issued in fiscal year 2003 for the | 3 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 4 | | that, by State fiscal year 2011, the
State is contributing at | 5 | | the rate otherwise required under this Section.
| 6 | | (b-4) Beginning in fiscal year 2018, each employer under | 7 | | this Article shall pay to the System a required contribution | 8 | | determined as a percentage of projected payroll and sufficient | 9 | | to produce an annual amount equal to: | 10 | | (i) for each of fiscal years 2018, 2019, and 2020, the | 11 | | defined benefit normal cost of the defined benefit plan, | 12 | | less the employee contribution, for each employee of that | 13 | | employer who has elected or who is deemed to have elected | 14 | | the benefits under Section 1-161 or who has made the | 15 | | election under subsection (b) of Section 1-161; for fiscal | 16 | | year 2021 and each fiscal year thereafter, the defined | 17 | | benefit normal cost of the defined benefit plan, less the | 18 | | employee contribution, plus 2%, for each employee of that | 19 | | employer who has elected or who is deemed to have elected | 20 | | the benefits under Section 1-161 or who has made the | 21 | | election under subsection (b) of Section 1-161; plus | 22 | | (ii) the amount required for that fiscal year to | 23 | | amortize any unfunded actuarial accrued liability | 24 | | associated with the present value of liabilities | 25 | | attributable to the employer's account under Section | 26 | | 16-158.3, determined
as a level percentage of payroll over |
| | | 10300HB0300ham002 | - 12 - | LRB103 03827 RJT 60742 a |
|
| 1 | | a 30-year rolling amortization period. | 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. | 6 | | In determining the contributions required under item (ii) | 7 | | of this subsection, the amount shall be computed by the System | 8 | | on the basis of the actuarial assumptions and tables used in | 9 | | the most recent actuarial valuation of the System that is | 10 | | available at the time of the computation. | 11 | | The contributions required under this subsection (b-4) | 12 | | shall be paid by an employer concurrently with that employer's | 13 | | payroll payment period. The State, as the actual employer of | 14 | | an employee, shall make the required contributions under this | 15 | | subsection. | 16 | | (c) Payment of the required State contributions and of all | 17 | | pensions,
retirement annuities, death benefits, refunds, and | 18 | | other benefits granted
under or assumed by this System, and | 19 | | all expenses in connection with the
administration and | 20 | | operation thereof, are obligations of the State.
| 21 | | If members are paid from special trust or federal funds | 22 | | which are
administered by the employing unit, whether school | 23 | | district or other
unit, the employing unit shall pay to the | 24 | | System from such
funds the full accruing retirement costs | 25 | | based upon that
service, which, beginning July 1, 2017, shall | 26 | | be at a rate, expressed as a percentage of salary, equal to the |
| | | 10300HB0300ham002 | - 13 - | LRB103 03827 RJT 60742 a |
|
| 1 | | total employer's normal cost, expressed as a percentage of | 2 | | payroll, as determined by the System. Employer contributions, | 3 | | based on
salary paid to members from federal funds, may be | 4 | | forwarded by the distributing
agency of the State of Illinois | 5 | | to the System prior to allocation, in an
amount determined in | 6 | | accordance with guidelines established by such
agency and the | 7 | | System. Any contribution for fiscal year 2015 collected as a | 8 | | result of the change made by Public Act 98-674 shall be | 9 | | considered a State contribution under subsection (b-3) of this | 10 | | Section.
| 11 | | (d) Effective July 1, 1986, any employer of a teacher as | 12 | | defined in
paragraph (8) of Section 16-106 shall pay the | 13 | | employer's normal cost
of benefits based upon the teacher's | 14 | | service, in addition to
employee contributions, as determined | 15 | | by the System. Such employer
contributions shall be forwarded | 16 | | monthly in accordance with guidelines
established by the | 17 | | System.
| 18 | | However, with respect to benefits granted under Section | 19 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 20 | | of Section 16-106, the
employer's contribution shall be 12% | 21 | | (rather than 20%) of the member's
highest annual salary rate | 22 | | for each year of creditable service granted, and
the employer | 23 | | shall also pay the required employee contribution on behalf of
| 24 | | the teacher. For the purposes of Sections 16-133.4 and | 25 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 26 | | 16-106 who is serving in that capacity
while on leave of |
| | | 10300HB0300ham002 | - 14 - | LRB103 03827 RJT 60742 a |
|
| 1 | | absence from another employer under this Article shall not
be | 2 | | considered an employee of the employer from which the teacher | 3 | | is on leave.
| 4 | | (e) Beginning July 1, 1998, every employer of a teacher
| 5 | | shall pay to the System an employer contribution computed as | 6 | | follows:
| 7 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 8 | | employer
contribution shall be equal to 0.3% of each | 9 | | teacher's salary.
| 10 | | (2) Beginning July 1, 1999 and thereafter, the | 11 | | employer
contribution shall be equal to 0.58% of each | 12 | | teacher's salary.
| 13 | | The school district or other employing unit may pay these | 14 | | employer
contributions out of any source of funding available | 15 | | for that purpose and
shall forward the contributions to the | 16 | | System on the schedule established
for the payment of member | 17 | | contributions.
| 18 | | These employer contributions are intended to offset a | 19 | | portion of the cost
to the System of the increases in | 20 | | retirement benefits resulting from Public Act 90-582.
| 21 | | Each employer of teachers is entitled to a credit against | 22 | | the contributions
required under this subsection (e) with | 23 | | respect to salaries paid to teachers
for the period January 1, | 24 | | 2002 through June 30, 2003, equal to the amount paid
by that | 25 | | employer under subsection (a-5) of Section 6.6 of the State | 26 | | Employees
Group Insurance Act of 1971 with respect to salaries |
| | | 10300HB0300ham002 | - 15 - | LRB103 03827 RJT 60742 a |
|
| 1 | | paid to teachers for that
period.
| 2 | | The additional 1% employee contribution required under | 3 | | Section 16-152 by Public Act 90-582
is the responsibility of | 4 | | the teacher and not the
teacher's employer, unless the | 5 | | employer agrees, through collective bargaining
or otherwise, | 6 | | to make the contribution on behalf of the teacher.
| 7 | | If an employer is required by a contract in effect on May | 8 | | 1, 1998 between the
employer and an employee organization to | 9 | | pay, on behalf of all its full-time
employees
covered by this | 10 | | Article, all mandatory employee contributions required under
| 11 | | this Article, then the employer shall be excused from paying | 12 | | the employer
contribution required under this subsection (e) | 13 | | for the balance of the term
of that contract. The employer and | 14 | | the employee organization shall jointly
certify to the System | 15 | | the existence of the contractual requirement, in such
form as | 16 | | the System may prescribe. This exclusion shall cease upon the
| 17 | | termination, extension, or renewal of the contract at any time | 18 | | after May 1,
1998.
| 19 | | (f) If the amount of a teacher's salary for any school year | 20 | | used to determine final average salary exceeds the member's | 21 | | annual full-time salary rate with the same employer for the | 22 | | previous school year by more than 6%, the teacher's employer | 23 | | shall pay to the System, in addition to all other payments | 24 | | required under this Section and in accordance with guidelines | 25 | | established by the System, the present value of the increase | 26 | | in benefits resulting from the portion of the increase in |
| | | 10300HB0300ham002 | - 16 - | LRB103 03827 RJT 60742 a |
|
| 1 | | salary that is in excess of 6%. This present value shall be | 2 | | computed by the System on the basis of the actuarial | 3 | | assumptions and tables used in the most recent actuarial | 4 | | valuation of the System that is available at the time of the | 5 | | computation. If a teacher's salary for the 2005-2006 school | 6 | | year is used to determine final average salary under this | 7 | | subsection (f), then the changes made to this subsection (f) | 8 | | by Public Act 94-1057 shall apply in calculating whether the | 9 | | increase in his or her salary is in excess of 6%. For the | 10 | | purposes of this Section, change in employment under Section | 11 | | 10-21.12 of the School Code on or after June 1, 2005 shall | 12 | | constitute a change in employer. The System may require the | 13 | | employer to provide any pertinent information or | 14 | | documentation.
The changes made to this subsection (f) by | 15 | | Public Act 94-1111 apply without regard to whether the teacher | 16 | | was in service on or after its effective date.
| 17 | | Whenever it determines that a payment is or may be | 18 | | required under this subsection, the System shall calculate the | 19 | | amount of the payment and bill the employer for that amount. | 20 | | The bill shall specify the calculations used to determine the | 21 | | amount due. If the employer disputes the amount of the bill, it | 22 | | may, within 30 days after receipt of the bill, apply to the | 23 | | System in writing for a recalculation. The application must | 24 | | specify in detail the grounds of the dispute and, if the | 25 | | employer asserts that the calculation is subject to subsection | 26 | | (g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section, |
| | | 10300HB0300ham002 | - 17 - | LRB103 03827 RJT 60742 a |
|
| 1 | | must include an affidavit setting forth and attesting to all | 2 | | facts within the employer's knowledge that are pertinent to | 3 | | the applicability of that subsection. Upon receiving a timely | 4 | | application for recalculation, the System shall review the | 5 | | application and, if appropriate, recalculate the amount due.
| 6 | | The employer contributions required under this subsection | 7 | | (f) may be paid in the form of a lump sum within 90 days after | 8 | | receipt of the bill. If the employer contributions are not | 9 | | paid within 90 days after receipt of the bill, then interest | 10 | | will be charged at a rate equal to the System's annual | 11 | | actuarially assumed rate of return on investment compounded | 12 | | annually from the 91st day after receipt of the bill. Payments | 13 | | must be concluded within 3 years after the employer's receipt | 14 | | of the bill.
| 15 | | (f-1) (Blank). | 16 | | (g) This subsection (g) applies only to payments made or | 17 | | salary increases given on or after June 1, 2005 but before July | 18 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 19 | | require the System to refund any payments received before
July | 20 | | 31, 2006 (the effective date of Public Act 94-1057). | 21 | | When assessing payment for any amount due under subsection | 22 | | (f), the System shall exclude salary increases paid to | 23 | | teachers under contracts or collective bargaining agreements | 24 | | entered into, amended, or renewed before June 1, 2005.
| 25 | | When assessing payment for any amount due under subsection | 26 | | (f), the System shall exclude salary increases paid to a |
| | | 10300HB0300ham002 | - 18 - | LRB103 03827 RJT 60742 a |
|
| 1 | | teacher at a time when the teacher is 10 or more years from | 2 | | retirement eligibility under Section 16-132 or 16-133.2.
| 3 | | When assessing payment for any amount due under subsection | 4 | | (f), the System shall exclude salary increases resulting from | 5 | | overload work, including summer school, when the school | 6 | | district has certified to the System, and the System has | 7 | | approved the certification, that (i) the overload work is for | 8 | | the sole purpose of classroom instruction in excess of the | 9 | | standard number of classes for a full-time teacher in a school | 10 | | district during a school year and (ii) the salary increases | 11 | | are equal to or less than the rate of pay for classroom | 12 | | instruction computed on the teacher's current salary and work | 13 | | schedule.
| 14 | | When assessing payment for any amount due under subsection | 15 | | (f), the System shall exclude a salary increase resulting from | 16 | | a promotion (i) for which the employee is required to hold a | 17 | | certificate or supervisory endorsement issued by the State | 18 | | Teacher Certification Board that is a different certification | 19 | | or supervisory endorsement than is required for the teacher's | 20 | | previous position and (ii) to a position that has existed and | 21 | | been filled by a member for no less than one complete academic | 22 | | year and the salary increase from the promotion is an increase | 23 | | that results in an amount no greater than the lesser of the | 24 | | average salary paid for other similar positions in the | 25 | | district requiring the same certification or the amount | 26 | | stipulated in the collective bargaining agreement for a |
| | | 10300HB0300ham002 | - 19 - | LRB103 03827 RJT 60742 a |
|
| 1 | | similar position requiring the same certification.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (f), the System shall exclude any payment to the teacher from | 4 | | the State of Illinois or the State Board of Education over | 5 | | which the employer does not have discretion, notwithstanding | 6 | | that the payment is included in the computation of final | 7 | | average salary.
| 8 | | (g-5) When assessing payment for any amount due under | 9 | | subsection (f), the System shall exclude salary increases | 10 | | resulting from overload or stipend work performed in a school | 11 | | year subsequent to a school year in which the employer was | 12 | | unable to offer or allow to be conducted overload or stipend | 13 | | work due to an emergency declaration limiting such activities. | 14 | | (g-10) When assessing payment for any amount due under | 15 | | subsection (f), the System shall exclude salary increases | 16 | | resulting from increased instructional time that exceeded the | 17 | | instructional time required during the 2019-2020 school year. | 18 | | (g-15) When assessing payment for any amount due under | 19 | | subsection (f), the System shall exclude salary increases | 20 | | resulting from teaching summer school on or after May 1, 2021 | 21 | | and before September 15, 2022. | 22 | | (g-20) When assessing payment for any amount due under | 23 | | subsection (f), the System shall exclude salary increases | 24 | | necessary to bring a school board in compliance with Public | 25 | | Act 101-443 or this amendatory Act of the 103rd General | 26 | | Assembly. |
| | | 10300HB0300ham002 | - 20 - | LRB103 03827 RJT 60742 a |
|
| 1 | | (h) When assessing payment for any amount due under | 2 | | subsection (f), the System shall exclude any salary increase | 3 | | described in subsection (g) of this Section given on or after | 4 | | July 1, 2011 but before July 1, 2014 under a contract or | 5 | | collective bargaining agreement entered into, amended, or | 6 | | renewed on or after June 1, 2005 but before July 1, 2011. | 7 | | Notwithstanding any other provision of this Section, any | 8 | | payments made or salary increases given after June 30, 2014 | 9 | | shall be used in assessing payment for any amount due under | 10 | | subsection (f) of this Section.
| 11 | | (i) The System shall prepare a report and file copies of | 12 | | the report with the Governor and the General Assembly by | 13 | | January 1, 2007 that contains all of the following | 14 | | information: | 15 | | (1) The number of recalculations required by the | 16 | | changes made to this Section by Public Act 94-1057 for | 17 | | each employer. | 18 | | (2) The dollar amount by which each employer's | 19 | | contribution to the System was changed due to | 20 | | recalculations required by Public Act 94-1057. | 21 | | (3) The total amount the System received from each | 22 | | employer as a result of the changes made to this Section by | 23 | | Public Act 94-4. | 24 | | (4) The increase in the required State contribution | 25 | | resulting from the changes made to this Section by Public | 26 | | Act 94-1057.
|
| | | 10300HB0300ham002 | - 21 - | LRB103 03827 RJT 60742 a |
|
| 1 | | (i-5) For school years beginning on or after July 1, 2017, | 2 | | if the amount of a participant's salary for any school year | 3 | | exceeds the amount of the salary set for the Governor, the | 4 | | participant's employer shall pay to the System, in addition to | 5 | | all other payments required under this Section and in | 6 | | accordance with guidelines established by the System, an | 7 | | amount determined by the System to be equal to the employer | 8 | | normal cost, as established by the System and expressed as a | 9 | | total percentage of payroll, multiplied by the amount of | 10 | | salary in excess of the amount of the salary set for the | 11 | | Governor. This amount shall be computed by the System on the | 12 | | basis of the actuarial assumptions and tables used in the most | 13 | | recent actuarial valuation of the System that is available at | 14 | | the time of the computation. The System may require the | 15 | | employer to provide any pertinent information or | 16 | | documentation. | 17 | | Whenever it determines that a payment is or may be | 18 | | required under this subsection, the System shall calculate the | 19 | | amount of the payment and bill the employer for that amount. | 20 | | The bill shall specify the calculations used to determine the | 21 | | amount due. If the employer disputes the amount of the bill, it | 22 | | may, within 30 days after receipt of the bill, apply to the | 23 | | System in writing for a recalculation. The application must | 24 | | specify in detail the grounds of the dispute. Upon receiving a | 25 | | timely application for recalculation, the System shall review | 26 | | the application and, if appropriate, recalculate the amount |
| | | 10300HB0300ham002 | - 22 - | LRB103 03827 RJT 60742 a |
|
| 1 | | due. | 2 | | The employer contributions required under this subsection | 3 | | may be paid in the form of a lump sum within 90 days after | 4 | | receipt of the bill. If the employer contributions are not | 5 | | paid within 90 days after receipt of the bill, then interest | 6 | | will be charged at a rate equal to the System's annual | 7 | | actuarially assumed rate of return on investment compounded | 8 | | annually from the 91st day after receipt of the bill. Payments | 9 | | must be concluded within 3 years after the employer's receipt | 10 | | of the bill. | 11 | | (j) For purposes of determining the required State | 12 | | contribution to the System, the value of the System's assets | 13 | | shall be equal to the actuarial value of the System's assets, | 14 | | which shall be calculated as follows: | 15 | | As of June 30, 2008, the actuarial value of the System's | 16 | | assets shall be equal to the market value of the assets as of | 17 | | that date. In determining the actuarial value of the System's | 18 | | assets for fiscal years after June 30, 2008, any actuarial | 19 | | gains or losses from investment return incurred in a fiscal | 20 | | year shall be recognized in equal annual amounts over the | 21 | | 5-year period following that fiscal year. | 22 | | (k) For purposes of determining the required State | 23 | | contribution to the system for a particular year, the | 24 | | actuarial value of assets shall be assumed to earn a rate of | 25 | | return equal to the system's actuarially assumed rate of | 26 | | return. |
| | | 10300HB0300ham002 | - 23 - | LRB103 03827 RJT 60742 a |
|
| 1 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 2 | | 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff. | 3 | | 8-20-21; 102-813, eff. 5-13-22.)
| 4 | | Section 10. The School Code is amended by changing Section | 5 | | 24-8 as follows:
| 6 | | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
| 7 | | Sec. 24-8. Minimum salary. In fixing the salaries of | 8 | | teachers, school boards shall pay those who
serve on a | 9 | | full-time basis not less than a rate for the school year that
| 10 | | is based upon training completed in a recognized institution | 11 | | of higher
learning, as follows: for the school year beginning | 12 | | July 1, 1980 and
until the 2020-2021 school year, less than a | 13 | | bachelor's degree, $9,000; 120 semester hours or
more and a | 14 | | bachelor's degree, $10,000; 150 semester hours or more and a
| 15 | | master's degree, $11,000. In fixing the salaries of teachers, | 16 | | a school board shall pay those who serve on a full-time basis a | 17 | | rate not less than (i) $32,076 for the 2020-2021 school year, | 18 | | (ii) $34,576 for the 2021-2022 school year, (iii) $37,076 for | 19 | | the 2022-2023 school year, and (iv) $40,000 for the 2023-2024 | 20 | | school year. The minimum salary rate for each school year | 21 | | thereafter, subject to review by the General Assembly, shall | 22 | | equal the minimum salary rate for the previous school year | 23 | | increased by a percentage equal to the annualized percentage | 24 | | increase, if any, in the Consumer Price Index for All Urban |
| | | 10300HB0300ham002 | - 24 - | LRB103 03827 RJT 60742 a |
|
| 1 | | Consumers for all items published by the United States | 2 | | Department of Labor for the 12-month period ending on June 30 | 3 | | of the school year that ended 12 months prior to the school | 4 | | year in which the adjusted salary is to be in effect the | 5 | | previous school year .
| 6 | | In accordance with this Section, the Commission on | 7 | | Government Forecasting and Accountability shall certify and | 8 | | publish the minimum salary rate to be used for the 2024-2025 | 9 | | school year no later than September 30, 2023. By no later than | 10 | | July 20, 2024 and annually on or before each July 20 | 11 | | thereafter, the Commission on Government Forecasting and | 12 | | Accountability shall certify and publish the minimum salary | 13 | | rate to be used for each school year after the 2024-2025 school | 14 | | year in accordance with this Section. | 15 | | On or before January 31, 2020, the Professional Review | 16 | | Panel created under Section 18-8.15 must submit a report to | 17 | | the General Assembly on how State funds and funds distributed | 18 | | under the evidence-based funding formula under Section 18-8.15 | 19 | | may aid the financial effects of the changes made by this | 20 | | amendatory Act of the 101st General Assembly. | 21 | | Based upon previous public school
experience in this State | 22 | | or any other state, territory, dependency or
possession of the | 23 | | United States, or in schools operated by or under the
auspices | 24 | | of the United States, teachers who serve on a full-time basis
| 25 | | shall have their salaries increased to at least the following | 26 | | amounts
above the starting salary for a teacher in such |
| | | 10300HB0300ham002 | - 25 - | LRB103 03827 RJT 60742 a |
|
| 1 | | district in the same
classification: with less than a | 2 | | bachelor's degree, $750 after 5 years;
with 120 semester hours | 3 | | or more and a bachelor's degree, $1,000 after 5
years and | 4 | | $1,600 after 8 years; with 150 semester hours or more and a | 5 | | master's
degree, $1,250 after 5 years, $2,000 after 8 years | 6 | | and $2,750 after 13 years.
| 7 | | For the purpose of this Section a teacher's salary shall | 8 | | include any amount
paid by the school district on behalf of the | 9 | | teacher, as teacher contributions,
to the Teachers' Retirement | 10 | | System of the State of Illinois.
| 11 | | If a school board establishes a schedule for teachers' | 12 | | salaries based
on education and experience, not inconsistent | 13 | | with this Section, all certificated
nurses employed by that | 14 | | board shall be paid in accordance with the provisions
of such | 15 | | schedule.
| 16 | | For purposes of this Section, a teacher who submits a | 17 | | certificate of
completion to the school office prior to the | 18 | | first day of the school
term shall be considered to have the | 19 | | degree stated in such certificate.
| 20 | | (Source: P.A. 101-443, eff. 6-1-20 .)
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.".
|
|