Full Text of HB0350 101st General Assembly
HB0350eng 101ST GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 15-155 and 16-158 as follows:
| 6 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 7 | | Sec. 15-155. Employer contributions.
| 8 | | (a) The State of Illinois shall make contributions by | 9 | | appropriations of
amounts which, together with the other | 10 | | employer contributions from trust,
federal, and other funds, | 11 | | employee contributions, income from investments,
and other | 12 | | income of this System, will be sufficient to meet the cost of
| 13 | | maintaining and administering the System on a 90% funded basis | 14 | | in accordance
with actuarial recommendations.
| 15 | | The Board shall determine the amount of State contributions | 16 | | required for
each fiscal year on the basis of the actuarial | 17 | | tables and other assumptions
adopted by the Board and the | 18 | | recommendations of the actuary, using the formula
in subsection | 19 | | (a-1).
| 20 | | (a-1) For State fiscal years 2012 through 2045, the minimum | 21 | | contribution
to the System to be made by the State for each | 22 | | fiscal year shall be an amount
determined by the System to be | 23 | | sufficient to bring the total assets of the
System up to 90% of |
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| 1 | | the total actuarial liabilities of the System by the end of
| 2 | | State fiscal year 2045. In making these determinations, the | 3 | | required State
contribution shall be calculated each year as a | 4 | | level percentage of payroll
over the years remaining to and | 5 | | including fiscal year 2045 and shall be
determined under the | 6 | | projected unit credit actuarial cost method.
| 7 | | For each of State fiscal years 2018, 2019, and 2020, the | 8 | | State shall make an additional contribution to the System equal | 9 | | to 2% of the total payroll of each employee who is deemed to | 10 | | have elected the benefits under Section 1-161 or who has made | 11 | | the election under subsection (c) of Section 1-161. | 12 | | A change in an actuarial or investment assumption that | 13 | | increases or
decreases the required State contribution and | 14 | | first
applies in State fiscal year 2018 or thereafter shall be
| 15 | | implemented in equal annual amounts over a 5-year period
| 16 | | beginning in the State fiscal year in which the actuarial
| 17 | | change first applies to the required State contribution. | 18 | | A change in an actuarial or investment assumption that | 19 | | increases or
decreases the required State contribution and | 20 | | first
applied to the State contribution in fiscal year 2014, | 21 | | 2015, 2016, or 2017 shall be
implemented: | 22 | | (i) as already applied in State fiscal years before | 23 | | 2018; and | 24 | | (ii) in the portion of the 5-year period beginning in | 25 | | the State fiscal year in which the actuarial
change first | 26 | | applied that occurs in State fiscal year 2018 or |
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| 1 | | thereafter, by calculating the change in equal annual | 2 | | amounts over that 5-year period and then implementing it at | 3 | | the resulting annual rate in each of the remaining fiscal | 4 | | years in that 5-year period. | 5 | | For State fiscal years 1996 through 2005, the State | 6 | | contribution to
the System, as a percentage of the applicable | 7 | | employee payroll, shall be
increased in equal annual increments | 8 | | so that by State fiscal year 2011, the
State is contributing at | 9 | | the rate required under this Section.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution for State fiscal year 2006 is | 12 | | $166,641,900.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State
contribution for State fiscal year 2007 is | 15 | | $252,064,100.
| 16 | | For each of State fiscal years 2008 through 2009, the State | 17 | | contribution to
the System, as a percentage of the applicable | 18 | | employee payroll, shall be
increased in equal annual increments | 19 | | from the required State contribution for State fiscal year | 20 | | 2007, so that by State fiscal year 2011, the
State is | 21 | | contributing at the rate otherwise required under this Section.
| 22 | | Notwithstanding any other provision of this Article, the | 23 | | total required State contribution for State fiscal year 2010 is | 24 | | $702,514,000 and shall be made from the State Pensions Fund and | 25 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 26 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
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| 1 | | share of bond sale expenses determined by the System's share of | 2 | | total bond proceeds, (ii) any amounts received from the General | 3 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 4 | | proceeds due to the issuance of discounted bonds, if | 5 | | applicable. | 6 | | Notwithstanding any other provision of this Article, the
| 7 | | total required State contribution for State fiscal year 2011 is
| 8 | | the amount recertified by the System on or before April 1, 2011 | 9 | | pursuant to Section 15-165 and shall be made from the State | 10 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 11 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 12 | | less (i) the pro rata
share of bond sale expenses determined by | 13 | | the System's share of
total bond proceeds, (ii) any amounts | 14 | | received from the General
Revenue Fund in fiscal year 2011, and | 15 | | (iii) any reduction in bond
proceeds due to the issuance of | 16 | | discounted bonds, if
applicable. | 17 | | Beginning in State fiscal year 2046, the minimum State | 18 | | contribution for
each fiscal year shall be the amount needed to | 19 | | 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 |
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| 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
calculated | 10 | | under this Section and
certified under Section 15-165, shall | 11 | | not exceed an amount equal to (i) the
amount of the required | 12 | | State contribution that would have been calculated under
this | 13 | | Section for that fiscal year if the System had not received any | 14 | | payments
under subsection (d) of Section 7.2 of the General | 15 | | Obligation Bond Act, minus
(ii) the portion of the State's | 16 | | total debt service payments for that fiscal
year on the bonds | 17 | | issued in fiscal year 2003 for the purposes of that Section | 18 | | 7.2, as determined
and certified by the Comptroller, that is | 19 | | the same as the System's portion of
the total moneys | 20 | | distributed under subsection (d) of Section 7.2 of the General
| 21 | | Obligation Bond Act. In determining this maximum for State | 22 | | fiscal years 2008 through 2010, however, the amount referred to | 23 | | in item (i) shall be increased, as a percentage of the | 24 | | applicable employee payroll, in equal increments calculated | 25 | | from the sum of the required State contribution for State | 26 | | fiscal year 2007 plus the applicable portion of the State's |
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| 1 | | total debt service payments for fiscal year 2007 on the bonds | 2 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 3 | | the General
Obligation Bond Act, so that, by State fiscal year | 4 | | 2011, the
State is contributing at the rate otherwise required | 5 | | under this Section.
| 6 | | (a-2) 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 (c) 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 (c) 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 | | 15-155.2, determined
as a level percentage of payroll over |
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| 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 (a-2) | 12 | | shall be paid by an employer concurrently with that employer's | 13 | | payroll payment period. The State, as the actual employer of an | 14 | | employee, shall make the required contributions under this | 15 | | subsection. | 16 | | As used in this subsection, "academic year" means the | 17 | | 12-month period beginning September 1. | 18 | | (b) If an employee is paid from trust or federal funds, the | 19 | | employer
shall pay to the Board contributions from those funds | 20 | | which are
sufficient to cover the accruing normal costs on | 21 | | behalf of the employee.
However, universities having employees | 22 | | who are compensated out of local
auxiliary funds, income funds, | 23 | | or service enterprise funds are not required
to pay such | 24 | | contributions on behalf of those employees. The local auxiliary
| 25 | | funds, income funds, and service enterprise funds of | 26 | | universities shall not be
considered trust funds for the |
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| 1 | | purpose of this Article, but funds of alumni
associations, | 2 | | foundations, and athletic associations which are affiliated | 3 | | with
the universities included as employers under this Article | 4 | | and other employers
which do not receive State appropriations | 5 | | are considered to be trust funds for
the purpose of this | 6 | | Article.
| 7 | | (b-1) The City of Urbana and the City of Champaign shall | 8 | | each make
employer contributions to this System for their | 9 | | respective firefighter
employees who participate in this | 10 | | System pursuant to subsection (h) of Section
15-107. The rate | 11 | | of contributions to be made by those municipalities shall
be | 12 | | determined annually by the Board on the basis of the actuarial | 13 | | assumptions
adopted by the Board and the recommendations of the | 14 | | actuary, and shall be
expressed as a percentage of salary for | 15 | | each such employee. The Board shall
certify the rate to the | 16 | | affected municipalities as soon as may be practical.
The | 17 | | employer contributions required under this subsection shall be | 18 | | remitted by
the municipality to the System at the same time and | 19 | | in the same manner as
employee contributions.
| 20 | | (c) Through State fiscal year 1995: The total employer | 21 | | contribution shall
be apportioned among the various funds of | 22 | | the State and other employers,
whether trust, federal, or other | 23 | | funds, in accordance with actuarial procedures
approved by the | 24 | | Board. State of Illinois contributions for employers receiving
| 25 | | State appropriations for personal services shall be payable | 26 | | from appropriations
made to the employers or to the System. The |
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| 1 | | contributions for Class I
community colleges covering earnings | 2 | | other than those paid from trust and
federal funds, shall be | 3 | | payable solely from appropriations to the Illinois
Community | 4 | | College Board or the System for employer contributions.
| 5 | | (d) Beginning in State fiscal year 1996, the required State | 6 | | contributions
to the System shall be appropriated directly to | 7 | | the System and shall be payable
through vouchers issued in | 8 | | accordance with subsection (c) of Section 15-165, except as | 9 | | provided in subsection (g).
| 10 | | (e) The State Comptroller shall draw warrants payable to | 11 | | the System upon
proper certification by the System or by the | 12 | | employer in accordance with the
appropriation laws and this | 13 | | Code.
| 14 | | (f) Normal costs under this Section means liability for
| 15 | | pensions and other benefits which accrues to the System because | 16 | | of the
credits earned for service rendered by the participants | 17 | | during the
fiscal year and expenses of administering the | 18 | | System, but shall not
include the principal of or any | 19 | | redemption premium or interest on any bonds
issued by the Board | 20 | | or any expenses incurred or deposits required in
connection | 21 | | therewith.
| 22 | | (g) If For academic years beginning on or after June 1, | 23 | | 2005 and before July 1, 2018 and for earnings paid to a | 24 | | participant under a contract or collective bargaining | 25 | | agreement entered into, amended, or renewed before the | 26 | | effective date of this amendatory Act of the 100th General |
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| 1 | | Assembly, if the amount of a participant's earnings for any | 2 | | academic year used to determine the final rate of earnings, | 3 | | determined on a full-time equivalent basis, exceeds the amount | 4 | | of his or her earnings with the same employer for the previous | 5 | | academic year, determined on a full-time equivalent basis, by | 6 | | more than 6%, the participant's employer shall pay to the | 7 | | System, in addition to all other payments required under this | 8 | | Section and in accordance with guidelines established by the | 9 | | System, the present value of the increase in benefits resulting | 10 | | from the portion of the increase in earnings that is in excess | 11 | | of 6%. This present value shall be computed by the System on | 12 | | the basis of the actuarial assumptions and tables used in the | 13 | | most recent actuarial valuation of the System that is available | 14 | | at 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 required | 18 | | under this subsection (g), 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 | | (h) or (i) of this Section or that subsection (g-1) applies , |
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| 1 | | must include an affidavit setting forth and attesting to all | 2 | | facts within the employer's knowledge that are pertinent to the | 3 | | 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 | | (g) 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 paid | 9 | | within 90 days after receipt of the bill, then interest will be | 10 | | charged at a rate equal to the System's annual actuarially | 11 | | assumed rate of return on investment compounded annually from | 12 | | the 91st day after receipt of the bill. Payments must be | 13 | | concluded within 3 years after the employer's receipt of the | 14 | | bill. | 15 | | When assessing payment for any amount due under this | 16 | | subsection (g), the System shall include earnings, to the | 17 | | extent not established by a participant under Section 15-113.11 | 18 | | or 15-113.12, that would have been paid to the participant had | 19 | | the participant not taken (i) periods of voluntary or | 20 | | involuntary furlough occurring on or after July 1, 2015 and on | 21 | | or before June 30, 2017 or (ii) periods of voluntary pay | 22 | | reduction in lieu of furlough occurring on or after July 1, | 23 | | 2015 and on or before June 30, 2017. Determining earnings that | 24 | | would have been paid to a participant had the participant not | 25 | | taken periods of voluntary or involuntary furlough or periods | 26 | | of voluntary pay reduction shall be the responsibility of the |
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| 1 | | employer, and shall be reported in a manner prescribed by the | 2 | | System. | 3 | | This subsection (g) does not apply to (1) Tier 2 hybrid | 4 | | plan members and (2) Tier 2 defined benefit members who first | 5 | | participate under this Article on or after the implementation | 6 | | date of the Optional Hybrid Plan. | 7 | | (g-1) (Blank). For academic years beginning on or after | 8 | | July 1, 2018 and for earnings paid to a participant under a | 9 | | contract or collective bargaining agreement entered into, | 10 | | amended, or renewed on or after the effective date of this | 11 | | amendatory Act of the 100th General Assembly , if the amount of | 12 | | a participant's earnings for any academic year used to | 13 | | determine the final rate of earnings, determined on a full-time | 14 | | equivalent basis, exceeds the amount of his or her earnings | 15 | | with the same employer for the previous academic year, | 16 | | determined on a full-time equivalent basis, by more than 3%, | 17 | | then the participant's employer shall pay to the System, in | 18 | | addition to all other payments required under this Section and | 19 | | in accordance with guidelines established by the System, the | 20 | | present value of the increase in benefits resulting from the | 21 | | portion of the increase in earnings that is in excess of 3%. | 22 | | This present value shall be computed by the System on the basis | 23 | | of the actuarial assumptions and tables used in the most recent | 24 | | actuarial valuation of the System that is available at the time | 25 | | of the computation. The System may require the employer to | 26 | | provide any pertinent information or documentation. |
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| 1 | | Whenever it determines that a payment is or may be required | 2 | | under this subsection (g-1), the System shall calculate the | 3 | | amount of the payment and bill the employer for that amount. | 4 | | The bill shall specify the calculations used to determine the | 5 | | amount due. If the employer disputes the amount of the bill, it | 6 | | may, within 30 days after receipt of the bill, apply to the | 7 | | System in writing for a recalculation. The application must | 8 | | specify in detail the grounds of the dispute and, if the | 9 | | employer asserts that subsection (g) of this Section applies, | 10 | | must include an affidavit setting forth and attesting to all | 11 | | facts within the employer's knowledge that are pertinent to the | 12 | | applicability of subsection (g). Upon receiving a timely | 13 | | application for recalculation, the System shall review the | 14 | | application and, if appropriate, recalculate the amount due. | 15 | | The employer contributions required under this subsection | 16 | | (g-1) may be paid in the form of a lump sum within 90 days after | 17 | | receipt of the bill. If the employer contributions are not paid | 18 | | within 90 days after receipt of the bill, then interest shall | 19 | | be charged at a rate equal to the System's annual actuarially | 20 | | assumed rate of return on investment compounded annually from | 21 | | the 91st day after receipt of the bill. Payments must be | 22 | | concluded within 3 years after the employer's receipt of the | 23 | | bill. | 24 | | This subsection (g-1) does not apply to (1) Tier 2 hybrid | 25 | | plan members and (2) Tier 2 defined benefit members who first | 26 | | participate under this Article on or after the implementation |
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| 1 | | date of the Optional Hybrid Plan. | 2 | | (h) This subsection (h) applies only to payments made or | 3 | | salary increases given on or after June 1, 2005 but before July | 4 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 5 | | require the System to refund any payments received before July | 6 | | 31, 2006 (the effective date of Public Act 94-1057). | 7 | | When assessing payment for any amount due under subsection | 8 | | (g), the System shall exclude earnings increases paid to | 9 | | participants under contracts or collective bargaining | 10 | | agreements entered into, amended, or renewed before June 1, | 11 | | 2005.
| 12 | | When assessing payment for any amount due under subsection | 13 | | (g), the System shall exclude earnings increases paid to a | 14 | | participant at a time when the participant is 10 or more years | 15 | | from retirement eligibility under Section 15-135.
| 16 | | When assessing payment for any amount due under subsection | 17 | | (g), the System shall exclude earnings increases resulting from | 18 | | overload work, including a contract for summer teaching, or | 19 | | overtime when the employer has certified to the System, and the | 20 | | System has approved the certification, that: (i) in the case of | 21 | | overloads (A) the overload work is for the sole purpose of | 22 | | academic instruction in excess of the standard number of | 23 | | instruction hours for a full-time employee occurring during the | 24 | | academic year that the overload is paid and (B) the earnings | 25 | | increases are equal to or less than the rate of pay for | 26 | | academic instruction computed using the participant's current |
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| 1 | | salary rate and work schedule; and (ii) in the case of | 2 | | overtime, the overtime was necessary for the educational | 3 | | mission. | 4 | | When assessing payment for any amount due under subsection | 5 | | (g), the System shall exclude any earnings increase resulting | 6 | | from (i) a promotion for which the employee moves from one | 7 | | classification to a higher classification under the State | 8 | | Universities Civil Service System, (ii) a promotion in academic | 9 | | rank for a tenured or tenure-track faculty position, or (iii) a | 10 | | promotion that the Illinois Community College Board has | 11 | | recommended in accordance with subsection (k) of this Section. | 12 | | These earnings increases shall be excluded only if the | 13 | | promotion is to a position that has existed and been filled by | 14 | | a member for no less than one complete academic year and the | 15 | | earnings increase as a result of the promotion is an increase | 16 | | that results in an amount no greater than the average salary | 17 | | paid for other similar positions. | 18 | | (i) When assessing payment for any amount due under | 19 | | subsection (g), the System shall exclude any salary increase | 20 | | described in subsection (h) of this Section given on or after | 21 | | July 1, 2011 but before July 1, 2014 under a contract or | 22 | | collective bargaining agreement entered into, amended, or | 23 | | renewed on or after June 1, 2005 but before July 1, 2011. | 24 | | Notwithstanding any other provision of this Section, any | 25 | | payments made or salary increases given after June 30, 2014 | 26 | | shall be used in assessing payment for any amount due under |
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| 1 | | subsection (g) of this Section.
| 2 | | (j) The System shall prepare a report and file copies of | 3 | | the report with the Governor and the General Assembly by | 4 | | January 1, 2007 that contains all of the following information: | 5 | | (1) The number of recalculations required by the | 6 | | changes made to this Section by Public Act 94-1057 for each | 7 | | employer. | 8 | | (2) The dollar amount by which each employer's | 9 | | contribution to the System was changed due to | 10 | | recalculations required by Public Act 94-1057. | 11 | | (3) The total amount the System received from each | 12 | | employer as a result of the changes made to this Section by | 13 | | Public Act 94-4. | 14 | | (4) The increase in the required State contribution | 15 | | resulting from the changes made to this Section by Public | 16 | | Act 94-1057. | 17 | | (j-5) For State fiscal years beginning on or after July 1, | 18 | | 2017, if the amount of a participant's earnings for any State | 19 | | fiscal year exceeds the amount of the salary set by law for the | 20 | | Governor that is in effect on July 1 of that fiscal year, the | 21 | | participant's employer shall pay to the System, in addition to | 22 | | all other payments required under this Section and in | 23 | | accordance with guidelines established by the System, an amount | 24 | | determined by the System to be equal to the employer normal | 25 | | cost, as established by the System and expressed as a total | 26 | | percentage of payroll, multiplied by the amount of earnings in |
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| 1 | | excess of the amount of the salary set by law for the Governor. | 2 | | This amount shall be computed by the System on the basis of the | 3 | | actuarial assumptions and tables used in the most recent | 4 | | actuarial valuation of the System that is available at the time | 5 | | of the computation. The System may require the employer to | 6 | | provide any pertinent information or documentation. | 7 | | Whenever it determines that a payment is or may be required | 8 | | under this subsection, the System shall calculate the amount of | 9 | | the payment and bill the employer for that amount. The bill | 10 | | shall specify the calculation used to determine the amount due. | 11 | | If the employer disputes the amount of the bill, it may, within | 12 | | 30 days after receipt of the bill, apply to the System in | 13 | | writing for a recalculation. The application must specify in | 14 | | detail the grounds of the dispute. Upon receiving a timely | 15 | | application for recalculation, the System shall review the | 16 | | application and, if appropriate, recalculate the amount due. | 17 | | The employer contributions required under this subsection | 18 | | may be paid in the form of a lump sum within 90 days after | 19 | | issuance of the bill. If the employer contributions are not | 20 | | paid within 90 days after issuance of the bill, then interest | 21 | | will be charged at a rate equal to the System's annual | 22 | | actuarially assumed rate of return on investment compounded | 23 | | annually from the 91st day after issuance of the bill. All | 24 | | payments must be received within 3 years after issuance of the | 25 | | bill. If the employer fails to make complete payment, including | 26 | | applicable interest, within 3 years, then the System may, after |
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| 1 | | giving notice to the employer, certify the delinquent amount to | 2 | | the State Comptroller, and the Comptroller shall thereupon | 3 | | deduct the certified delinquent amount from State funds payable | 4 | | to the employer and pay them instead to the System. | 5 | | This subsection (j-5) does not apply to a participant's | 6 | | earnings to the extent an employer pays the employer normal | 7 | | cost of such earnings. | 8 | | The changes made to this subsection (j-5) by Public Act | 9 | | 100-624 this amendatory Act of the 100th General Assembly are | 10 | | intended to apply retroactively to July 6, 2017 (the effective | 11 | | date of Public Act 100-23). | 12 | | (k) The Illinois Community College Board shall adopt rules | 13 | | for recommending lists of promotional positions submitted to | 14 | | the Board by community colleges and for reviewing the | 15 | | promotional lists on an annual basis. When recommending | 16 | | promotional lists, the Board shall consider the similarity of | 17 | | the positions submitted to those positions recognized for State | 18 | | universities by the State Universities Civil Service System. | 19 | | The Illinois Community College Board shall file a copy of its | 20 | | findings with the System. The System shall consider the | 21 | | findings of the Illinois Community College Board when making | 22 | | determinations under this Section. The System shall not exclude | 23 | | any earnings increases resulting from a promotion when the | 24 | | promotion was not submitted by a community college. Nothing in | 25 | | this subsection (k) shall require any community college to | 26 | | submit any information to the Community College Board.
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| 1 | | (l) For purposes of determining the required State | 2 | | contribution to the System, the value of the System's assets | 3 | | shall be equal to the actuarial value of the System's assets, | 4 | | which shall be calculated as follows: | 5 | | As of June 30, 2008, the actuarial value of the System's | 6 | | assets shall be equal to the market value of the assets as of | 7 | | that date. In determining the actuarial value of the System's | 8 | | assets for fiscal years after June 30, 2008, any actuarial | 9 | | gains or losses from investment return incurred in a fiscal | 10 | | year shall be recognized in equal annual amounts over the | 11 | | 5-year period following that fiscal year. | 12 | | (m) For purposes of determining the required State | 13 | | contribution to the system for a particular year, the actuarial | 14 | | value of assets shall be assumed to earn a rate of return equal | 15 | | to the system's actuarially assumed rate of return. | 16 | | (Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17; | 17 | | 100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
| 18 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 19 | | Sec. 16-158. Contributions by State and other employing | 20 | | units.
| 21 | | (a) The State shall make contributions to the System by | 22 | | means of
appropriations from the Common School Fund and other | 23 | | State funds of amounts
which, together with other employer | 24 | | contributions, employee contributions,
investment income, and | 25 | | other income, will be sufficient to meet the cost of
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| 1 | | maintaining and administering the System on a 90% funded basis | 2 | | in accordance
with actuarial recommendations.
| 3 | | The Board shall determine the amount of State contributions | 4 | | required for
each fiscal year on the basis of the actuarial | 5 | | tables and other assumptions
adopted by the Board and the | 6 | | recommendations of the actuary, using the formula
in subsection | 7 | | (b-3).
| 8 | | (a-1) Annually, on or before November 15 until November 15, | 9 | | 2011, the Board shall certify to the
Governor the amount of the | 10 | | required State contribution for the coming fiscal
year. The | 11 | | certification under this subsection (a-1) shall include a copy | 12 | | of the actuarial recommendations
upon which it is based and | 13 | | shall specifically identify the System's projected State | 14 | | normal cost for that fiscal year.
| 15 | | On or before May 1, 2004, the Board shall recalculate and | 16 | | recertify to
the Governor the amount of the required State | 17 | | contribution to the System for
State fiscal year 2005, taking | 18 | | into account the amounts appropriated to and
received by the | 19 | | System under subsection (d) of Section 7.2 of the General
| 20 | | Obligation Bond Act.
| 21 | | On or before July 1, 2005, the Board shall recalculate and | 22 | | recertify
to the Governor the amount of the required State
| 23 | | contribution to the System for State fiscal year 2006, taking | 24 | | into account the changes in required State contributions made | 25 | | by Public Act 94-4.
| 26 | | On or before April 1, 2011, the Board shall recalculate and |
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| 1 | | recertify to the Governor the amount of the required State | 2 | | contribution to the System for State fiscal year 2011, applying | 3 | | the changes made by Public Act 96-889 to the System's assets | 4 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 5 | | was approved on that date. | 6 | | (a-5) On or before November 1 of each year, beginning | 7 | | November 1, 2012, the Board shall submit to the State Actuary, | 8 | | the Governor, and the General Assembly a proposed certification | 9 | | of the amount of the required State contribution to the System | 10 | | for the next fiscal year, along with all of the actuarial | 11 | | assumptions, calculations, and data upon which that proposed | 12 | | certification is based. On or before January 1 of each year, | 13 | | beginning January 1, 2013, the State Actuary shall issue a | 14 | | preliminary report concerning the proposed certification and | 15 | | identifying, if necessary, recommended changes in actuarial | 16 | | assumptions that the Board must consider before finalizing its | 17 | | certification of the required State contributions. On or before | 18 | | January 15, 2013 and each January 15 thereafter, the Board | 19 | | shall certify to the Governor and the General Assembly the | 20 | | amount of the required State contribution for the next fiscal | 21 | | year. The Board's certification must note any deviations from | 22 | | the State Actuary's recommended changes, the reason or reasons | 23 | | for not following the State Actuary's recommended changes, and | 24 | | the fiscal impact of not following the State Actuary's | 25 | | recommended changes on the required State contribution. | 26 | | (a-10) By November 1, 2017, the Board shall recalculate and |
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| 1 | | recertify to the State Actuary, the Governor, and the General | 2 | | Assembly the amount of the State contribution to the System for | 3 | | State fiscal year 2018, taking into account the changes in | 4 | | required State contributions made by Public Act 100-23. The | 5 | | State Actuary shall review the assumptions and valuations | 6 | | underlying the Board's revised certification and issue a | 7 | | preliminary report concerning the proposed recertification and | 8 | | identifying, if necessary, recommended changes in actuarial | 9 | | assumptions that the Board must consider before finalizing its | 10 | | certification of the required State contributions. The Board's | 11 | | final certification must note any deviations from the State | 12 | | Actuary's recommended changes, the reason or reasons for not | 13 | | following the State Actuary's recommended changes, and the | 14 | | fiscal impact of not following the State Actuary's recommended | 15 | | changes on the required State contribution. | 16 | | (a-15) On or after June 15, 2019, but no later than June | 17 | | 30, 2019, the Board shall recalculate and recertify to the | 18 | | Governor and the General Assembly the amount of the State | 19 | | contribution to the System for State fiscal year 2019, taking | 20 | | into account the changes in required State contributions made | 21 | | by Public Act 100-587 this amendatory Act of the 100th General | 22 | | Assembly . The recalculation shall be made using assumptions | 23 | | adopted by the Board for the original fiscal year 2019 | 24 | | certification. The monthly voucher for the 12th month of fiscal | 25 | | year 2019 shall be paid by the Comptroller after the | 26 | | recertification required pursuant to this subsection is |
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| 1 | | submitted to the Governor, Comptroller, and General Assembly. | 2 | | The recertification submitted to the General Assembly shall be | 3 | | filed with the Clerk of the House of Representatives and the | 4 | | Secretary of the Senate in electronic form only, in the manner | 5 | | that the Clerk and the Secretary shall direct. | 6 | | (b) Through State fiscal year 1995, the State contributions | 7 | | shall be
paid to the System in accordance with Section 18-7 of | 8 | | the School Code.
| 9 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 10 | | of each month,
or as soon thereafter as may be practicable, the | 11 | | Board shall submit vouchers
for payment of State contributions | 12 | | to the System, in a total monthly amount of
one-twelfth of the | 13 | | required annual State contribution certified under
subsection | 14 | | (a-1).
From March 5, 2004 (the
effective date of Public Act | 15 | | 93-665)
through June 30, 2004, the Board shall not submit | 16 | | vouchers for the
remainder of fiscal year 2004 in excess of the | 17 | | fiscal year 2004
certified contribution amount determined | 18 | | under this Section
after taking into consideration the transfer | 19 | | to the System
under subsection (a) of Section 6z-61 of the | 20 | | State Finance Act.
These vouchers shall be paid by the State | 21 | | Comptroller and
Treasurer by warrants drawn on the funds | 22 | | appropriated to the System for that
fiscal year.
| 23 | | If in any month the amount remaining unexpended from all | 24 | | other appropriations
to the System for the applicable fiscal | 25 | | year (including the appropriations to
the System under Section | 26 | | 8.12 of the State Finance Act and Section 1 of the
State |
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| 1 | | Pension Funds Continuing Appropriation Act) is less than the | 2 | | amount
lawfully vouchered under this subsection, the | 3 | | difference shall be paid from the
Common School Fund under the | 4 | | continuing appropriation authority provided in
Section 1.1 of | 5 | | the State Pension Funds Continuing Appropriation Act.
| 6 | | (b-2) Allocations from the Common School Fund apportioned | 7 | | to school
districts not coming under this System shall not be | 8 | | diminished or affected by
the provisions of this Article.
| 9 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 10 | | contribution
to the System to be made by the State for each | 11 | | fiscal year shall be an amount
determined by the System to be | 12 | | sufficient to bring the total assets of the
System up to 90% of | 13 | | the total actuarial liabilities of the System by the end of
| 14 | | State fiscal year 2045. In making these determinations, the | 15 | | required State
contribution shall be calculated each year as a | 16 | | level percentage of payroll
over the years remaining to and | 17 | | including fiscal year 2045 and shall be
determined under the | 18 | | projected unit credit actuarial cost method.
| 19 | | For each of State fiscal years 2018, 2019, and 2020, the | 20 | | State shall make an additional contribution to the System equal | 21 | | to 2% of the total payroll of each employee who is deemed to | 22 | | have elected the benefits under Section 1-161 or who has made | 23 | | the election under subsection (c) of Section 1-161. | 24 | | A change in an actuarial or investment assumption that | 25 | | increases or
decreases the required State contribution and | 26 | | first
applies in State fiscal year 2018 or thereafter shall be
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| 1 | | implemented in equal annual amounts over a 5-year period
| 2 | | beginning in the State fiscal year in which the actuarial
| 3 | | change first applies to the required State contribution. | 4 | | A change in an actuarial or investment assumption that | 5 | | increases or
decreases the required State contribution and | 6 | | first
applied to the State contribution in fiscal year 2014, | 7 | | 2015, 2016, or 2017 shall be
implemented: | 8 | | (i) as already applied in State fiscal years before | 9 | | 2018; and | 10 | | (ii) in the portion of the 5-year period beginning in | 11 | | the State fiscal year in which the actuarial
change first | 12 | | applied that occurs in State fiscal year 2018 or | 13 | | thereafter, by calculating the change in equal annual | 14 | | amounts over that 5-year period and then implementing it at | 15 | | the resulting annual rate in each of the remaining fiscal | 16 | | years in that 5-year period. | 17 | | For State fiscal years 1996 through 2005, the State | 18 | | contribution to the
System, as a percentage of the applicable | 19 | | employee payroll, shall be increased
in equal annual increments | 20 | | so that by State fiscal year 2011, the State is
contributing at | 21 | | the rate required under this Section; except that in the
| 22 | | following specified State fiscal years, the State contribution | 23 | | to the System
shall not be less than the following indicated | 24 | | percentages of the applicable
employee payroll, even if the | 25 | | indicated percentage will produce a State
contribution in | 26 | | excess of the amount otherwise required under this subsection
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| 1 | | and subsection (a), and notwithstanding any contrary | 2 | | certification made under
subsection (a-1) before May 27, 1998 | 3 | | (the effective date of Public Act 90-582):
10.02% in FY 1999;
| 4 | | 10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% | 5 | | in FY 2003; and
13.56% in FY 2004.
| 6 | | Notwithstanding any other provision of this Article, the | 7 | | total required State
contribution for State fiscal year 2006 is | 8 | | $534,627,700.
| 9 | | Notwithstanding any other provision of this Article, the | 10 | | total required State
contribution for State fiscal year 2007 is | 11 | | $738,014,500.
| 12 | | For each of State fiscal years 2008 through 2009, the State | 13 | | contribution to
the System, as a percentage of the applicable | 14 | | employee payroll, shall be
increased in equal annual increments | 15 | | from the required State contribution for State fiscal year | 16 | | 2007, so that by State fiscal year 2011, the
State is | 17 | | contributing at the rate otherwise required under this Section.
| 18 | | Notwithstanding any other provision of this Article, the | 19 | | total required State contribution for State fiscal year 2010 is | 20 | | $2,089,268,000 and shall be made from the proceeds of bonds | 21 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 22 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 23 | | expenses determined by the System's share of total bond | 24 | | proceeds, (ii) any amounts received from the Common School Fund | 25 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 26 | | due to the issuance of discounted bonds, if applicable. |
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| 1 | | Notwithstanding any other provision of this Article, the
| 2 | | total required State contribution for State fiscal year 2011 is
| 3 | | the amount recertified by the System on or before April 1, 2011 | 4 | | pursuant to subsection (a-1) of this Section and shall be made | 5 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 6 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 7 | | pro rata share of bond sale
expenses determined by the System's | 8 | | share of total bond
proceeds, (ii) any amounts received from | 9 | | the Common School Fund
in fiscal year 2011, and (iii) any | 10 | | reduction in bond proceeds
due to the issuance of discounted | 11 | | bonds, if applicable. This amount shall include, in addition to | 12 | | the amount certified by the System, an amount necessary to meet | 13 | | employer contributions required by the State as an employer | 14 | | under paragraph (e) of this Section, which may also be used by | 15 | | the System for contributions required by paragraph (a) of | 16 | | Section 16-127. | 17 | | Beginning in State fiscal year 2046, the minimum State | 18 | | contribution for
each fiscal year shall be the amount needed to | 19 | | 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 |
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| 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
calculated | 10 | | under this Section and
certified under subsection (a-1), shall | 11 | | not exceed an amount equal to (i) the
amount of the required | 12 | | State contribution that would have been calculated under
this | 13 | | Section for that fiscal year if the System had not received any | 14 | | payments
under subsection (d) of Section 7.2 of the General | 15 | | Obligation Bond Act, minus
(ii) the portion of the State's | 16 | | total debt service payments for that fiscal
year on the bonds | 17 | | issued in fiscal year 2003 for the purposes of that Section | 18 | | 7.2, as determined
and certified by the Comptroller, that is | 19 | | the same as the System's portion of
the total moneys | 20 | | distributed under subsection (d) of Section 7.2 of the General
| 21 | | Obligation Bond Act. In determining this maximum for State | 22 | | fiscal years 2008 through 2010, however, the amount referred to | 23 | | in item (i) shall be increased, as a percentage of the | 24 | | applicable employee payroll, in equal increments calculated | 25 | | from the sum of the required State contribution for State | 26 | | fiscal year 2007 plus the applicable portion of the State's |
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| 1 | | total debt service payments for fiscal year 2007 on the bonds | 2 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 3 | | the General
Obligation Bond Act, so that, by State fiscal year | 4 | | 2011, the
State is contributing at the rate otherwise required | 5 | | 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 |
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| 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 an | 14 | | 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 all | 19 | | expenses in connection with the
administration and operation | 20 | | 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 based | 25 | | upon that
service, which, beginning July 1, 2017, shall be at a | 26 | | rate, expressed as a percentage of salary, equal to the total |
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| 1 | | employer's normal cost, expressed as a percentage of payroll, | 2 | | as determined by the System. Employer contributions, based on
| 3 | | salary paid to members from federal funds, may be forwarded by | 4 | | the distributing
agency of the State of Illinois to the System | 5 | | prior to allocation, in an
amount determined in accordance with | 6 | | guidelines established by such
agency and the System. Any | 7 | | contribution for fiscal year 2015 collected as a result of the | 8 | | change made by Public Act 98-674 shall be considered a State | 9 | | contribution under subsection (b-3) of this Section.
| 10 | | (d) Effective July 1, 1986, any employer of a teacher as | 11 | | defined in
paragraph (8) of Section 16-106 shall pay the | 12 | | employer's normal cost
of benefits based upon the teacher's | 13 | | service, in addition to
employee contributions, as determined | 14 | | by the System. Such employer
contributions shall be forwarded | 15 | | monthly in accordance with guidelines
established by the | 16 | | System.
| 17 | | However, with respect to benefits granted under Section | 18 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 19 | | of Section 16-106, the
employer's contribution shall be 12% | 20 | | (rather than 20%) of the member's
highest annual salary rate | 21 | | for each year of creditable service granted, and
the employer | 22 | | shall also pay the required employee contribution on behalf of
| 23 | | the teacher. For the purposes of Sections 16-133.4 and | 24 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 25 | | 16-106 who is serving in that capacity
while on leave of | 26 | | absence from another employer under this Article shall not
be |
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| 1 | | considered an employee of the employer from which the teacher | 2 | | is on leave.
| 3 | | (e) Beginning July 1, 1998, every employer of a teacher
| 4 | | shall pay to the System an employer contribution computed as | 5 | | follows:
| 6 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 7 | | employer
contribution shall be equal to 0.3% of each | 8 | | teacher's salary.
| 9 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 10 | | contribution shall be equal to 0.58% of each teacher's | 11 | | salary.
| 12 | | The school district or other employing unit may pay these | 13 | | employer
contributions out of any source of funding available | 14 | | for that purpose and
shall forward the contributions to the | 15 | | System on the schedule established
for the payment of member | 16 | | contributions.
| 17 | | These employer contributions are intended to offset a | 18 | | portion of the cost
to the System of the increases in | 19 | | retirement benefits resulting from Public Act 90-582.
| 20 | | Each employer of teachers is entitled to a credit against | 21 | | the contributions
required under this subsection (e) with | 22 | | respect to salaries paid to teachers
for the period January 1, | 23 | | 2002 through June 30, 2003, equal to the amount paid
by that | 24 | | employer under subsection (a-5) of Section 6.6 of the State | 25 | | Employees
Group Insurance Act of 1971 with respect to salaries | 26 | | paid to teachers for that
period.
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| 1 | | The additional 1% employee contribution required under | 2 | | Section 16-152 by Public Act 90-582
is the responsibility of | 3 | | the teacher and not the
teacher's employer, unless the employer | 4 | | agrees, through collective bargaining
or otherwise, to make the | 5 | | contribution on behalf of the teacher.
| 6 | | If an employer is required by a contract in effect on May | 7 | | 1, 1998 between the
employer and an employee organization to | 8 | | pay, on behalf of all its full-time
employees
covered by this | 9 | | Article, all mandatory employee contributions required under
| 10 | | this Article, then the employer shall be excused from paying | 11 | | the employer
contribution required under this subsection (e) | 12 | | for the balance of the term
of that contract. The employer and | 13 | | the employee organization shall jointly
certify to the System | 14 | | the existence of the contractual requirement, in such
form as | 15 | | the System may prescribe. This exclusion shall cease upon the
| 16 | | termination, extension, or renewal of the contract at any time | 17 | | after May 1,
1998.
| 18 | | (f) If For school years beginning on or after June 1, 2005 | 19 | | and before July 1, 2018 and for salary paid to a teacher under | 20 | | a contract or collective bargaining agreement entered into, | 21 | | amended, or renewed before the effective date of this amendatory | 22 | | Act of the 100th General Assembly , if the amount of a teacher's | 23 | | salary for any school year used to determine final average | 24 | | salary exceeds the member's annual full-time salary rate with | 25 | | the same employer for the previous school year by more than 6%, | 26 | | the teacher's employer shall pay to the System, in addition to |
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| 1 | | all other payments required under this Section and in | 2 | | accordance with guidelines established by the System, the | 3 | | present value of the increase in benefits resulting from the | 4 | | portion of the increase in salary that is in excess of 6%. This | 5 | | present value shall be computed by the System on the basis of | 6 | | the actuarial assumptions and tables used in the most recent | 7 | | actuarial valuation of the System that is available at the time | 8 | | of the computation. If a teacher's salary for the 2005-2006 | 9 | | school year is used to determine final average salary under | 10 | | this subsection (f), then the changes made to this subsection | 11 | | (f) by Public Act 94-1057 shall apply in calculating whether | 12 | | the increase in his or her salary is in excess of 6%. For the | 13 | | purposes of this Section, change in employment under Section | 14 | | 10-21.12 of the School Code on or after June 1, 2005 shall | 15 | | constitute a change in employer. The System may require the | 16 | | employer to provide any pertinent information or | 17 | | documentation.
The changes made to this subsection (f) by | 18 | | Public Act 94-1111 apply without regard to whether the teacher | 19 | | was in service on or after its effective date.
| 20 | | Whenever it determines that a payment is or may be required | 21 | | under this subsection, the System shall calculate the amount of | 22 | | the payment and bill the employer for that amount. The bill | 23 | | shall specify the calculations used to determine the amount | 24 | | due. If the employer disputes the amount of the bill, it may, | 25 | | within 30 days after receipt of the bill, apply to the System | 26 | | in writing for a recalculation. The application must specify in |
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| 1 | | detail the grounds of the dispute and, if the employer asserts | 2 | | that the calculation is subject to subsection (g) or (h) of | 3 | | this Section or that subsection (f-1) of this Section applies , | 4 | | must include an affidavit setting forth and attesting to all | 5 | | facts within the employer's knowledge that are pertinent to the | 6 | | applicability of that subsection. Upon receiving a timely | 7 | | application for recalculation, the System shall review the | 8 | | application and, if appropriate, recalculate the amount due.
| 9 | | The employer contributions required under this subsection | 10 | | (f) may be paid in the form of a lump sum within 90 days after | 11 | | receipt of the bill. If the employer contributions are not paid | 12 | | within 90 days after receipt of the bill, then interest will be | 13 | | charged at a rate equal to the System's annual actuarially | 14 | | assumed rate of return on investment compounded annually from | 15 | | the 91st day after receipt of the bill. Payments must be | 16 | | concluded within 3 years after the employer's receipt of the | 17 | | bill.
| 18 | | (f-1) (Blank). For school years beginning on or after July | 19 | | 1, 2018 and for salary paid to a teacher under a contract or | 20 | | collective bargaining agreement entered into, amended, or | 21 | | renewed on or after the effective date of this amendatory Act | 22 | | of the 100th General Assembly , if the amount of a teacher's | 23 | | salary for any school year used to determine final average | 24 | | salary exceeds the member's annual full-time salary rate with | 25 | | the same employer for the previous school year by more than 3%, | 26 | | then the teacher's employer shall pay to the System, in |
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| 1 | | addition to all other payments required under this Section and | 2 | | in accordance with guidelines established by the System, the | 3 | | present value of the increase in benefits resulting from the | 4 | | portion of the increase in salary that is in excess of 3%. This | 5 | | present value shall be computed by the System on the basis of | 6 | | the actuarial assumptions and tables used in the most recent | 7 | | actuarial valuation of the System that is available at the time | 8 | | of the computation. The System may require the employer to | 9 | | provide any pertinent information or documentation. | 10 | | Whenever it determines that a payment is or may be required | 11 | | under this subsection (f-1), the System shall calculate the | 12 | | amount of the payment and bill the employer for that amount. | 13 | | The bill shall specify the calculations used to determine the | 14 | | amount due. If the employer disputes the amount of the bill, it | 15 | | shall, within 30 days after receipt of the bill, apply to the | 16 | | System in writing for a recalculation. The application must | 17 | | specify in detail the grounds of the dispute and, if the | 18 | | employer asserts that subsection (f) of this Section applies, | 19 | | must include an affidavit setting forth and attesting to all | 20 | | facts within the employer's knowledge that are pertinent to the | 21 | | applicability of subsection (f). Upon receiving a timely | 22 | | application for recalculation, the System shall review the | 23 | | application and, if appropriate, recalculate the amount due. | 24 | | The employer contributions required under this subsection | 25 | | (f-1) may be paid in the form of a lump sum within 90 days after | 26 | | receipt of the bill. If the employer contributions are not paid |
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| 1 | | within 90 days after receipt of the bill, then interest shall | 2 | | be charged at a rate equal to the System's annual actuarially | 3 | | assumed rate of return on investment compounded annually from | 4 | | the 91st day after receipt of the bill. Payments must be | 5 | | concluded within 3 years after the employer's receipt of the | 6 | | bill. | 7 | | (g) This subsection (g) applies only to payments made or | 8 | | salary increases given on or after June 1, 2005 but before July | 9 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 10 | | require the System to refund any payments received before
July | 11 | | 31, 2006 (the effective date of Public Act 94-1057). | 12 | | When assessing payment for any amount due under subsection | 13 | | (f), the System shall exclude salary increases paid to teachers | 14 | | under contracts or collective bargaining agreements entered | 15 | | into, amended, or renewed before June 1, 2005.
| 16 | | When assessing payment for any amount due under subsection | 17 | | (f), the System shall exclude salary increases paid to a | 18 | | teacher at a time when the teacher is 10 or more years from | 19 | | retirement eligibility under Section 16-132 or 16-133.2.
| 20 | | When assessing payment for any amount due under subsection | 21 | | (f), the System shall exclude salary increases resulting from | 22 | | overload work, including summer school, when the school | 23 | | district has certified to the System, and the System has | 24 | | approved the certification, that (i) the overload work is for | 25 | | the sole purpose of classroom instruction in excess of the | 26 | | standard number of classes for a full-time teacher in a school |
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| 1 | | district during a school year and (ii) the salary increases are | 2 | | equal to or less than the rate of pay for classroom instruction | 3 | | computed on the teacher's current salary and work schedule.
| 4 | | When assessing payment for any amount due under subsection | 5 | | (f), the System shall exclude a salary increase resulting from | 6 | | a promotion (i) for which the employee is required to hold a | 7 | | certificate or supervisory endorsement issued by the State | 8 | | Teacher Certification Board that is a different certification | 9 | | or supervisory endorsement than is required for the teacher's | 10 | | previous position and (ii) to a position that has existed and | 11 | | been filled by a member for no less than one complete academic | 12 | | year and the salary increase from the promotion is an increase | 13 | | that results in an amount no greater than the lesser of the | 14 | | average salary paid for other similar positions in the district | 15 | | requiring the same certification or the amount stipulated in | 16 | | the collective bargaining agreement for a similar position | 17 | | requiring the same certification.
| 18 | | When assessing payment for any amount due under subsection | 19 | | (f), the System shall exclude any payment to the teacher from | 20 | | the State of Illinois or the State Board of Education over | 21 | | which the employer does not have discretion, notwithstanding | 22 | | that the payment is included in the computation of final | 23 | | average salary.
| 24 | | (h) When assessing payment for any amount due under | 25 | | subsection (f), the System shall exclude any salary increase | 26 | | described in subsection (g) of this Section given on or after |
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| 1 | | July 1, 2011 but before July 1, 2014 under a contract or | 2 | | collective bargaining agreement entered into, amended, or | 3 | | renewed on or after June 1, 2005 but before July 1, 2011. | 4 | | Notwithstanding any other provision of this Section, any | 5 | | payments made or salary increases given after June 30, 2014 | 6 | | shall be used in assessing payment for any amount due under | 7 | | subsection (f) of this Section.
| 8 | | (i) The System shall prepare a report and file copies of | 9 | | the report with the Governor and the General Assembly by | 10 | | January 1, 2007 that contains all of the following information: | 11 | | (1) The number of recalculations required by the | 12 | | changes made to this Section by Public Act 94-1057 for each | 13 | | employer. | 14 | | (2) The dollar amount by which each employer's | 15 | | contribution to the System was changed due to | 16 | | recalculations required by Public Act 94-1057. | 17 | | (3) The total amount the System received from each | 18 | | employer as a result of the changes made to this Section by | 19 | | Public Act 94-4. | 20 | | (4) The increase in the required State contribution | 21 | | resulting from the changes made to this Section by Public | 22 | | Act 94-1057.
| 23 | | (i-5) For school years beginning on or after July 1, 2017, | 24 | | if the amount of a participant's salary for any school year | 25 | | exceeds the amount of the salary set for the Governor, the | 26 | | participant's employer shall pay to the System, in addition to |
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| 1 | | all other payments required under this Section and in | 2 | | accordance with guidelines established by the System, an amount | 3 | | determined by the System to be equal to the employer normal | 4 | | cost, as established by the System and expressed as a total | 5 | | percentage of payroll, multiplied by the amount of salary in | 6 | | excess of the amount of the salary set for the Governor. This | 7 | | amount shall be computed by the System on the basis of the | 8 | | actuarial assumptions and tables used in the most recent | 9 | | actuarial valuation of the System that is available at the time | 10 | | of the computation. The System may require the employer to | 11 | | provide any pertinent information or documentation. | 12 | | Whenever it determines that a payment is or may be required | 13 | | under this subsection, the System shall calculate the amount of | 14 | | the payment and bill the employer for that amount. The bill | 15 | | shall specify the calculations used to determine the amount | 16 | | due. If the employer disputes the amount of the bill, it may, | 17 | | within 30 days after receipt of the bill, apply to the System | 18 | | in writing for a recalculation. The application must specify in | 19 | | detail the grounds of the dispute. Upon receiving a timely | 20 | | application for recalculation, the System shall review the | 21 | | application and, if appropriate, recalculate the amount due. | 22 | | The employer contributions required under this subsection | 23 | | may be paid in the form of a lump sum within 90 days after | 24 | | receipt of the bill. If the employer contributions are not paid | 25 | | within 90 days after receipt of the bill, then interest will be | 26 | | charged at a rate equal to the System's annual actuarially |
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| 1 | | assumed rate of return on investment compounded annually from | 2 | | the 91st day after receipt of the bill. Payments must be | 3 | | concluded within 3 years after the employer's receipt of the | 4 | | bill. | 5 | | (j) For purposes of determining the required State | 6 | | contribution to the System, the value of the System's assets | 7 | | shall be equal to the actuarial value of the System's assets, | 8 | | which shall be calculated as follows: | 9 | | As of June 30, 2008, the actuarial value of the System's | 10 | | assets shall be equal to the market value of the assets as of | 11 | | that date. In determining the actuarial value of the System's | 12 | | assets for fiscal years after June 30, 2008, any actuarial | 13 | | gains or losses from investment return incurred in a fiscal | 14 | | year shall be recognized in equal annual amounts over the | 15 | | 5-year period following that fiscal year. | 16 | | (k) For purposes of determining the required State | 17 | | contribution to the system for a particular year, the actuarial | 18 | | value of assets shall be assumed to earn a rate of return equal | 19 | | to the system's actuarially assumed rate of return. | 20 | | (Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; | 21 | | 100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff. | 22 | | 8-14-18; revised 10-4-18.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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