Full Text of SB2157 094th General Assembly
SB2157 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2157
Introduced 11/2/2005, by Sen. Arthur J. Wilhelmi SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/15-155 |
from Ch. 108 1/2, par. 15-155 |
40 ILCS 5/16-158 |
from Ch. 108 1/2, par. 16-158 |
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Amends the State Universities Article of the Illinois Pension Code. Provides that provisions concerning the employer's contribution for earnings increases in excess of 6% do not apply to earnings increases as a result of the System participant (A) accepting academic classes for which course credit is received in addition to the number of classes the employer requires under its policy or by contract and (B) teaching during the summer term. Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that provisions concerning the employer's contribution for salary increases in excess of 6% do not apply to salary increases as a result of the teacher (A) accepting academic classes for which course credit is received in addition to the number of classes the employer requires under its policy or by contract, if the employer certifies the reason the teacher was asked to accept additional classes, and (B) accepting summer classes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2157 |
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LRB094 14776 AMC 49757 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 15-155 and 16-158 as follows:
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| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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| Sec. 15-155. Employer contributions.
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| (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
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| maintaining and administering the System on a 90% funded basis | 14 |
| in accordance
with actuarial recommendations.
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| 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).
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| (a-1) For State fiscal years 2011 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 | 24 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 26 |
| required State
contribution shall be calculated each year as a | 27 |
| level percentage of payroll
over the years remaining to and | 28 |
| including fiscal year 2045 and shall be
determined under the | 29 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 31 |
| contribution to
the System, as a percentage of the applicable | 32 |
| employee payroll, shall be
increased in equal annual increments |
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| so that by State fiscal year 2011, the
State is contributing at | 2 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2006 is | 5 |
| $166,641,900.
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| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution for State fiscal year 2007 is | 8 |
| $252,064,100.
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| For each of State fiscal years 2008 through 2010, the State | 10 |
| contribution to
the System, as a percentage of the applicable | 11 |
| employee payroll, shall be
increased in equal annual increments | 12 |
| from the required State contribution for State fiscal year | 13 |
| 2007, so that by State fiscal year 2011, the
State is | 14 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 16 |
| contribution for
each fiscal year shall be the amount needed to | 17 |
| maintain the total assets of
the System at 90% of the total | 18 |
| actuarial liabilities of the System.
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| Notwithstanding any other provision of this Section, the | 20 |
| required State
contribution for State fiscal year 2005 and for | 21 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 22 |
| under this Section and
certified under Section 15-165, shall | 23 |
| not exceed an amount equal to (i) the
amount of the required | 24 |
| State contribution that would have been calculated under
this | 25 |
| Section for that fiscal year if the System had not received any | 26 |
| payments
under subsection (d) of Section 7.2 of the General | 27 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 28 |
| total debt service payments for that fiscal
year on the bonds | 29 |
| issued for the purposes of that Section 7.2, as determined
and | 30 |
| certified by the Comptroller, that is the same as the System's | 31 |
| portion of
the total moneys distributed under subsection (d) of | 32 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 33 |
| this maximum for State fiscal years 2008 through 2010, however, | 34 |
| the amount referred to in item (i) shall be increased, as a | 35 |
| percentage of the applicable employee payroll, in equal | 36 |
| increments calculated from the sum of the required State |
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| contribution for State fiscal year 2007 plus the applicable | 2 |
| portion of the State's total debt service payments for fiscal | 3 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 4 |
| of the General
Obligation Bond Act, so that, by State fiscal | 5 |
| year 2011, the
State is contributing at the rate otherwise | 6 |
| required under this Section.
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| (b) If an employee is paid from trust or federal funds, the | 8 |
| employer
shall pay to the Board contributions from those funds | 9 |
| which are
sufficient to cover the accruing normal costs on | 10 |
| behalf of the employee.
However, universities having employees | 11 |
| who are compensated out of local
auxiliary funds, income funds, | 12 |
| or service enterprise funds are not required
to pay such | 13 |
| contributions on behalf of those employees. The local auxiliary
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| funds, income funds, and service enterprise funds of | 15 |
| universities shall not be
considered trust funds for the | 16 |
| purpose of this Article, but funds of alumni
associations, | 17 |
| foundations, and athletic associations which are affiliated | 18 |
| with
the universities included as employers under this Article | 19 |
| and other employers
which do not receive State appropriations | 20 |
| are considered to be trust funds for
the purpose of this | 21 |
| Article.
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| (b-1) The City of Urbana and the City of Champaign shall | 23 |
| each make
employer contributions to this System for their | 24 |
| respective firefighter
employees who participate in this | 25 |
| System pursuant to subsection (h) of Section
15-107. The rate | 26 |
| of contributions to be made by those municipalities shall
be | 27 |
| determined annually by the Board on the basis of the actuarial | 28 |
| assumptions
adopted by the Board and the recommendations of the | 29 |
| actuary, and shall be
expressed as a percentage of salary for | 30 |
| each such employee. The Board shall
certify the rate to the | 31 |
| affected municipalities as soon as may be practical.
The | 32 |
| employer contributions required under this subsection shall be | 33 |
| remitted by
the municipality to the System at the same time and | 34 |
| in the same manner as
employee contributions.
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| (c) Through State fiscal year 1995: The total employer | 36 |
| contribution shall
be apportioned among the various funds of |
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| the State and other employers,
whether trust, federal, or other | 2 |
| funds, in accordance with actuarial procedures
approved by the | 3 |
| Board. State of Illinois contributions for employers receiving
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| State appropriations for personal services shall be payable | 5 |
| from appropriations
made to the employers or to the System. The | 6 |
| contributions for Class I
community colleges covering earnings | 7 |
| other than those paid from trust and
federal funds, shall be | 8 |
| payable solely from appropriations to the Illinois
Community | 9 |
| College Board or the System for employer contributions.
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| (d) Beginning in State fiscal year 1996, the required State | 11 |
| contributions
to the System shall be appropriated directly to | 12 |
| the System and shall be payable
through vouchers issued in | 13 |
| accordance with subsection (c) of Section 15-165, except as | 14 |
| provided in subsection (g).
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| (e) The State Comptroller shall draw warrants payable to | 16 |
| the System upon
proper certification by the System or by the | 17 |
| employer in accordance with the
appropriation laws and this | 18 |
| Code.
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| (f) Normal costs under this Section means liability for
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| pensions and other benefits which accrues to the System because | 21 |
| of the
credits earned for service rendered by the participants | 22 |
| during the
fiscal year and expenses of administering the | 23 |
| System, but shall not
include the principal of or any | 24 |
| redemption premium or interest on any bonds
issued by the Board | 25 |
| or any expenses incurred or deposits required in
connection | 26 |
| therewith.
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| (g) If the amount of a participant's earnings for any | 28 |
| academic year used to determine the final rate of earnings | 29 |
| exceeds the amount of his or her earnings with the same | 30 |
| employer for the previous academic year by more than 6%, the | 31 |
| participant's employer shall pay to the System, in addition to | 32 |
| all other payments required under this Section and in | 33 |
| accordance with guidelines established by the System, the | 34 |
| present value of the increase in benefits resulting from the | 35 |
| portion of the increase in earnings that is in excess of 6%. | 36 |
| This present value shall be computed by the System on the basis |
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| of the actuarial assumptions and tables used in the most recent | 2 |
| actuarial valuation of the System that is available at the time | 3 |
| of the computation. The employer contributions required under | 4 |
| this subsection (g) shall be paid in the form of a lump sum | 5 |
| within 30 days after receipt of the bill after the participant | 6 |
| begins receiving benefits under this Article.
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| The provisions of this subsection (g) do not apply to any | 8 |
| of the following:
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| (1) Earnings
earnings increases paid to participants | 10 |
| under contracts or collective bargaining agreements | 11 |
| entered into, amended, or renewed before the effective date | 12 |
| of this amendatory Act of the 94th General Assembly.
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| (2) Earnings increases as a result of the participant | 14 |
| (A) accepting academic classes for which course credit is | 15 |
| received in addition to the number of classes the employer | 16 |
| requires under its policy or by contract and (B) teaching | 17 |
| during the summer term.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
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| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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| Sec. 16-158. Contributions by State and other employing | 21 |
| units.
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| (a) The State shall make contributions to the System by | 23 |
| means of
appropriations from the Common School Fund and other | 24 |
| State funds of amounts
which, together with other employer | 25 |
| contributions, employee contributions,
investment income, and | 26 |
| other income, will be sufficient to meet the cost of
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| maintaining and administering the System on a 90% funded basis | 28 |
| in accordance
with actuarial recommendations.
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| The Board shall determine the amount of State contributions | 30 |
| required for
each fiscal year on the basis of the actuarial | 31 |
| tables and other assumptions
adopted by the Board and the | 32 |
| recommendations of the actuary, using the formula
in subsection | 33 |
| (b-3).
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| (a-1) Annually, on or before November 15, the Board shall | 35 |
| certify to the
Governor the amount of the required State |
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| contribution for the coming fiscal
year. The certification | 2 |
| shall include a copy of the actuarial recommendations
upon | 3 |
| which it is based.
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| On or before May 1, 2004, the Board shall recalculate and | 5 |
| recertify to
the Governor the amount of the required State | 6 |
| contribution to the System for
State fiscal year 2005, taking | 7 |
| into account the amounts appropriated to and
received by the | 8 |
| System under subsection (d) of Section 7.2 of the General
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| Obligation Bond Act.
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| On or before July 1, 2005, the Board shall recalculate and | 11 |
| recertify
to the Governor the amount of the required State
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| contribution to the System for State fiscal year 2006, taking | 13 |
| into account the changes in required State contributions made | 14 |
| by this amendatory Act of the 94th General Assembly.
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| (b) Through State fiscal year 1995, the State contributions | 16 |
| shall be
paid to the System in accordance with Section 18-7 of | 17 |
| the School Code.
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| (b-1) Beginning in State fiscal year 1996, on the 15th day | 19 |
| of each month,
or as soon thereafter as may be practicable, the | 20 |
| Board shall submit vouchers
for payment of State contributions | 21 |
| to the System, in a total monthly amount of
one-twelfth of the | 22 |
| required annual State contribution certified under
subsection | 23 |
| (a-1).
From the
effective date of this amendatory Act of the | 24 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 25 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 26 |
| excess of the fiscal year 2004
certified contribution amount | 27 |
| determined under this Section
after taking into consideration | 28 |
| the transfer to the System
under subsection (a) of Section | 29 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 30 |
| the State Comptroller and
Treasurer by warrants drawn on the | 31 |
| funds appropriated to the System for that
fiscal year.
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| If in any month the amount remaining unexpended from all | 33 |
| other appropriations
to the System for the applicable fiscal | 34 |
| year (including the appropriations to
the System under Section | 35 |
| 8.12 of the State Finance Act and Section 1 of the
State | 36 |
| Pension Funds Continuing Appropriation Act) is less than the |
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| amount
lawfully vouchered under this subsection, the | 2 |
| difference shall be paid from the
Common School Fund under the | 3 |
| continuing appropriation authority provided in
Section 1.1 of | 4 |
| the State Pension Funds Continuing Appropriation Act.
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| (b-2) Allocations from the Common School Fund apportioned | 6 |
| to school
districts not coming under this System shall not be | 7 |
| diminished or affected by
the provisions of this Article.
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| (b-3) For State fiscal years 2011 through 2045, the minimum | 9 |
| contribution
to the System to be made by the State for each | 10 |
| fiscal year shall be an amount
determined by the System to be | 11 |
| sufficient to bring the total assets of the
System up to 90% of | 12 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 14 |
| required State
contribution shall be calculated each year as a | 15 |
| level percentage of payroll
over the years remaining to and | 16 |
| including fiscal year 2045 and shall be
determined under the | 17 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 19 |
| contribution to the
System, as a percentage of the applicable | 20 |
| employee payroll, shall be increased
in equal annual increments | 21 |
| so that by State fiscal year 2011, the State is
contributing at | 22 |
| the rate required under this Section; except that in the
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| following specified State fiscal years, the State contribution | 24 |
| to the System
shall not be less than the following indicated | 25 |
| percentages of the applicable
employee payroll, even if the | 26 |
| indicated percentage will produce a State
contribution in | 27 |
| excess of the amount otherwise required under this subsection
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| and subsection (a), and notwithstanding any contrary | 29 |
| certification made under
subsection (a-1) before the effective | 30 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 31 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 32 |
| 2003; and
13.56% in FY 2004.
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| Notwithstanding any other provision of this Article, the | 34 |
| total required State
contribution for State fiscal year 2006 is | 35 |
| $534,627,700.
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| Notwithstanding any other provision of this Article, the |
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| total required State
contribution for State fiscal year 2007 is | 2 |
| $738,014,500.
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| For each of State fiscal years 2008 through 2010, the State | 4 |
| contribution to
the System, as a percentage of the applicable | 5 |
| employee payroll, shall be
increased in equal annual increments | 6 |
| from the required State contribution for State fiscal year | 7 |
| 2007, so that by State fiscal year 2011, the
State is | 8 |
| contributing at the rate otherwise required under this Section.
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| Beginning in State fiscal year 2046, the minimum State | 10 |
| contribution for
each fiscal year shall be the amount needed to | 11 |
| maintain the total assets of
the System at 90% of the total | 12 |
| actuarial liabilities of the System.
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| Notwithstanding any other provision of this Section, the | 14 |
| required State
contribution for State fiscal year 2005 and for | 15 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 16 |
| under this Section and
certified under subsection (a-1), shall | 17 |
| not exceed an amount equal to (i) the
amount of the required | 18 |
| State contribution that would have been calculated under
this | 19 |
| Section for that fiscal year if the System had not received any | 20 |
| payments
under subsection (d) of Section 7.2 of the General | 21 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 22 |
| total debt service payments for that fiscal
year on the bonds | 23 |
| issued for the purposes of that Section 7.2, as determined
and | 24 |
| certified by the Comptroller, that is the same as the System's | 25 |
| portion of
the total moneys distributed under subsection (d) of | 26 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 27 |
| this maximum for State fiscal years 2008 through 2010, however, | 28 |
| the amount referred to in item (i) shall be increased, as a | 29 |
| percentage of the applicable employee payroll, in equal | 30 |
| increments calculated from the sum of the required State | 31 |
| contribution for State fiscal year 2007 plus the applicable | 32 |
| portion of the State's total debt service payments for fiscal | 33 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 34 |
| of the General
Obligation Bond Act, so that, by State fiscal | 35 |
| year 2011, the
State is contributing at the rate otherwise | 36 |
| required under this Section.
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| (c) Payment of the required State contributions and of all | 2 |
| pensions,
retirement annuities, death benefits, refunds, and | 3 |
| other benefits granted
under or assumed by this System, and all | 4 |
| expenses in connection with the
administration and operation | 5 |
| thereof, are obligations of the State.
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| If members are paid from special trust or federal funds | 7 |
| which are
administered by the employing unit, whether school | 8 |
| district or other
unit, the employing unit shall pay to the | 9 |
| System from such
funds the full accruing retirement costs based | 10 |
| upon that
service, as determined by the System. Employer | 11 |
| contributions, based on
salary paid to members from federal | 12 |
| funds, may be forwarded by the distributing
agency of the State | 13 |
| of Illinois to the System prior to allocation, in an
amount | 14 |
| determined in accordance with guidelines established by such
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| agency and the System.
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| (d) Effective July 1, 1986, any employer of a teacher as | 17 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 18 |
| employer's normal cost
of benefits based upon the teacher's | 19 |
| service, in addition to
employee contributions, as determined | 20 |
| by the System. Such employer
contributions shall be forwarded | 21 |
| monthly in accordance with guidelines
established by the | 22 |
| System.
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| However, with respect to benefits granted under Section | 24 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 25 |
| of Section 16-106, the
employer's contribution shall be 12% | 26 |
| (rather than 20%) of the member's
highest annual salary rate | 27 |
| for each year of creditable service granted, and
the employer | 28 |
| shall also pay the required employee contribution on behalf of
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| the teacher. For the purposes of Sections 16-133.4 and | 30 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 31 |
| 16-106 who is serving in that capacity
while on leave of | 32 |
| absence from another employer under this Article shall not
be | 33 |
| considered an employee of the employer from which the teacher | 34 |
| is on leave.
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| (e) Beginning July 1, 1998, every employer of a teacher
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| shall pay to the System an employer contribution computed as |
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| follows:
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| (1) Beginning July 1, 1998 through June 30, 1999, the | 3 |
| employer
contribution shall be equal to 0.3% of each | 4 |
| teacher's salary.
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| (2) Beginning July 1, 1999 and thereafter, the employer
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| contribution shall be equal to 0.58% of each teacher's | 7 |
| salary.
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| The school district or other employing unit may pay these | 9 |
| employer
contributions out of any source of funding available | 10 |
| for that purpose and
shall forward the contributions to the | 11 |
| System on the schedule established
for the payment of member | 12 |
| contributions.
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| These employer contributions are intended to offset a | 14 |
| portion of the cost
to the System of the increases in | 15 |
| retirement benefits resulting from this
amendatory Act of 1998.
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| Each employer of teachers is entitled to a credit against | 17 |
| the contributions
required under this subsection (e) with | 18 |
| respect to salaries paid to teachers
for the period January 1, | 19 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 20 |
| employer under subsection (a-5) of Section 6.6 of the State | 21 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 22 |
| paid to teachers for that
period.
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| The additional 1% employee contribution required under | 24 |
| Section 16-152 by
this amendatory Act of 1998 is the | 25 |
| responsibility of the teacher and not the
teacher's employer, | 26 |
| unless the employer agrees, through collective bargaining
or | 27 |
| otherwise, to make the contribution on behalf of the teacher.
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| If an employer is required by a contract in effect on May | 29 |
| 1, 1998 between the
employer and an employee organization to | 30 |
| pay, on behalf of all its full-time
employees
covered by this | 31 |
| Article, all mandatory employee contributions required under
| 32 |
| this Article, then the employer shall be excused from paying | 33 |
| the employer
contribution required under this subsection (e) | 34 |
| for the balance of the term
of that contract. The employer and | 35 |
| the employee organization shall jointly
certify to the System | 36 |
| the existence of the contractual requirement, in such
form as |
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| the System may prescribe. This exclusion shall cease upon the
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| termination, extension, or renewal of the contract at any time | 3 |
| after May 1,
1998.
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| (f) If the amount of a teacher's salary for any school year | 5 |
| used to determine final average salary exceeds the amount of | 6 |
| his or her salary with the same employer for the previous | 7 |
| school year by more than 6%, the teacher's employer shall pay | 8 |
| to the System, in addition to all other payments required under | 9 |
| this Section and in accordance with guidelines established by | 10 |
| the System, the present value of the increase in benefits | 11 |
| resulting from the portion of the increase in salary that is in | 12 |
| excess of 6%. This present value shall be computed by the | 13 |
| System on the basis of the actuarial assumptions and tables | 14 |
| used in the most recent actuarial valuation of the System that | 15 |
| is available at the time of the computation. The employer | 16 |
| contributions required under this subsection (f) shall be paid | 17 |
| in the form of a lump sum within 30 days after receipt of the | 18 |
| bill after the teacher begins receiving benefits under this | 19 |
| Article.
| 20 |
| The provisions of this subsection (f) do not apply to any | 21 |
| of the following:
| 22 |
| (1) Salary
salary increases paid to teachers under | 23 |
| contracts or collective bargaining agreements entered | 24 |
| into, amended, or renewed before the effective date of this | 25 |
| amendatory Act of the 94th General Assembly.
| 26 |
| (2) Salary increases as a result of the teacher | 27 |
| accepting academic classes for which course credit is | 28 |
| received in addition to the number of classes the employer | 29 |
| requires under its policy or by contract, if the employer | 30 |
| certifies the reason the teacher was asked to accept | 31 |
| additional classes. | 32 |
| (3) Salary increases as a result of the teacher | 33 |
| accepting summer classes.
| 34 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 35 |
| eff. 6-1-05.)
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.
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