Full Text of HB0254 99th General Assembly
HB0254 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB0254 Introduced , by Rep. Joe Sosnowski SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/1-103.3 | | 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 | 40 ILCS 5/14-131 | | 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 | 40 ILCS 5/18-131 | from Ch. 108 1/2, par. 18-131 |
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Provides that if and only if the Supreme Court of Illinois, in the consolidated case of In re Pension Reform Litigation, No. 118585, finds that either Public Act 98-599 is unconstitutional in its entirety or that the changes made by Public Act 98-599 to certain Sections of the Illinois Pension Code are unconstitutional, the Illinois Pension Code is amended to make changes to the prescribed funding formulas for the 5 State-funded retirement systems. In the Judges Article, increases the funding ratio from 90% to 100%. Makes corresponding changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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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. If and only if the Supreme Court of Illinois, in | 5 | | the consolidated case of In re Pension Reform Litigation, No. | 6 | | 118585, finds that either: Public Act 98-599 is | 7 | | unconstitutional in its entirety; or that the changes made by | 8 | | Public Act 98-599 to Sections 1-103.3, 2-124, 14-131, 15-155, | 9 | | 16-158, and 18-131 of the Illinois Pension Code are | 10 | | unconstitutional, the Illinois Pension Code is amended by | 11 | | changing Sections 1-103.3, 2-124, 14-131, 15-155, 16-158, and | 12 | | 18-131 as follows:
| 13 | | (40 ILCS 5/1-103.3)
| 14 | | Sec. 1-103.3. Application of 1994 amendment; funding | 15 | | standard.
| 16 | | (a) The provisions of Public Act 88-593 that change the | 17 | | method of
calculating, certifying, and paying the required | 18 | | State contributions to the
retirement systems established | 19 | | under Articles 2, 14, 15, 16, and 18 shall
first apply to the | 20 | | State contributions required for State fiscal year 1996.
| 21 | | (b) (Blank).
| 22 | | (b-5) The General Assembly declares that a funding ratio | 23 | | (the ratio of a retirement system's total assets to its total |
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| 1 | | actuarial liabilities) of 100% is an appropriate goal for | 2 | | State-funded retirement systems in Illinois, and it finds that | 3 | | a funding ratio of 100% is now the generally-recognized norm | 4 | | throughout the nation for public employee retirement systems | 5 | | that are considered to be financially secure and funded in an | 6 | | appropriate and responsible manner. | 7 | | (c) Every 5 years, beginning in 1999, the Commission on | 8 | | Government Forecasting and Accountability, in consultation | 9 | | with the affected retirement systems and the
Governor's Office | 10 | | of Management and Budget (formerly
Bureau
of the Budget), shall | 11 | | consider and determine whether the 100% funding ratio goals
| 12 | | adopted in Articles 2, 14, 15, 16, and 18 of this Code continue | 13 | | to represent appropriate funding goals for
those retirement | 14 | | systems, and it shall report its findings
and recommendations | 15 | | on this subject to the Governor and the General Assembly.
| 16 | | (Source: P.A. 98-599, eff. 6-1-14 .)
| 17 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 18 | | Sec. 2-124. Contributions by State.
| 19 | | (a) The State shall make contributions to the System by
| 20 | | appropriations of amounts which, together with the | 21 | | contributions of
participants, interest earned on investments, | 22 | | and other income
will meet the cost of maintaining and | 23 | | administering the System on a 100%
funded basis in accordance | 24 | | with actuarial recommendations by the end of State fiscal year | 25 | | 2044 .
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| 1 | | (b) The Board shall determine the amount of State
| 2 | | contributions required for each fiscal year on the basis of the
| 3 | | actuarial tables and other assumptions adopted by the Board and | 4 | | the
prescribed rate of interest, using the formula in | 5 | | subsection (c).
| 6 | | (c) For State fiscal years 2016 through 2045, the minimum
| 7 | | contribution to the System to be made by the State for each
| 8 | | fiscal year shall be an amount determined by the System to be
| 9 | | sufficient to bring the total assets of the System up to 100%
| 10 | | of the total actuarial liabilities of the System by the end
of | 11 | | State fiscal year 2045. In making these determinations, the
| 12 | | required State contribution shall be calculated each year as a
| 13 | | level percentage of payroll over the years remaining to and
| 14 | | including fiscal year 2045 and shall be determined under the
| 15 | | projected unit credit actuarial cost method. | 16 | | For State fiscal year years 2015 through 2044 , the minimum | 17 | | contribution
to the System to be made by the State for the each | 18 | | fiscal year shall be an amount
determined by the System to be | 19 | | equal to the sum of (1) the State's portion of the projected | 20 | | normal cost for the that fiscal year, plus (2) an amount | 21 | | sufficient to bring the total assets of the
System up to 100% | 22 | | of the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2044. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a | 25 | | level percentage of payroll
over the years remaining to and | 26 | | including fiscal year 2044 and shall be
determined under the |
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| 1 | | projected unit cost method for fiscal year 2015 and under the | 2 | | entry age normal actuarial cost method for fiscal years 2016 | 3 | | through 2044 . | 4 | | For State fiscal years 2012 through 2014, the minimum | 5 | | contribution
to the System to be made by the State for each | 6 | | fiscal year shall be an amount
determined by the System to be | 7 | | sufficient to bring the total assets of the
System up to 90% of | 8 | | the total actuarial liabilities of the System by the end of
| 9 | | State fiscal year 2045. In making these determinations, the | 10 | | required State
contribution shall be calculated each year as a | 11 | | level percentage of payroll
over the years remaining to and | 12 | | including fiscal year 2045 and shall be
determined under the | 13 | | projected unit credit actuarial cost method.
| 14 | | For State fiscal years 1996 through 2005, the State | 15 | | contribution to
the System, as a percentage of the applicable | 16 | | employee payroll, shall be
increased in equal annual increments | 17 | | so that by State fiscal year 2011, the
State is contributing at | 18 | | the rate required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State
contribution for State fiscal year 2006 is | 21 | | $4,157,000.
| 22 | | Notwithstanding any other provision of this Article, the | 23 | | total required State
contribution for State fiscal year 2007 is | 24 | | $5,220,300.
| 25 | | For each of State fiscal years 2008 through 2009, the State | 26 | | contribution to
the System, as a percentage of the applicable |
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| 1 | | employee payroll, shall be
increased in equal annual increments | 2 | | from the required State contribution for State fiscal year | 3 | | 2007, so that by State fiscal year 2011, the
State is | 4 | | contributing at the rate otherwise required under this Section.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State contribution for State fiscal year 2010 is | 7 | | $10,454,000 and shall be made from the proceeds of bonds sold | 8 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 9 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 10 | | expenses determined by the System's share of total bond | 11 | | proceeds, (ii) any amounts received from the General Revenue | 12 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 13 | | proceeds due to the issuance of discounted bonds, if | 14 | | applicable. | 15 | | Notwithstanding any other provision of this Article, the
| 16 | | total required State contribution for State fiscal year 2011 is
| 17 | | the amount recertified by the System on or before April 1, 2011 | 18 | | pursuant to Section 2-134 and shall be made from the proceeds | 19 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 20 | | the General
Obligation Bond Act, less (i) the pro rata share of | 21 | | bond sale
expenses determined by the System's share of total | 22 | | bond
proceeds, (ii) any amounts received from the General | 23 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 24 | | bond
proceeds due to the issuance of discounted bonds, if
| 25 | | applicable. | 26 | | Beginning in State fiscal year 2045, the minimum State |
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| 1 | | contribution for each fiscal year shall be the amount needed to | 2 | | maintain the total assets of the System at 100% of the total | 3 | | actuarial liabilities of the System.
| 4 | | Amounts received by the System pursuant to Section 25 of | 5 | | the Budget Stabilization Act or Section 8.12 of the State | 6 | | Finance Act in any fiscal year do not reduce and do not | 7 | | constitute payment of any portion of the minimum State | 8 | | contribution required under this Article in that fiscal year. | 9 | | Such amounts shall not reduce, and shall not be included in the | 10 | | calculation of, the required State contributions under this | 11 | | Article in any future year until the System has reached a | 12 | | funding ratio of at least 100%. A reference in this Article to | 13 | | the "required State contribution" or any substantially similar | 14 | | term does not include or apply to any amounts payable to the | 15 | | System under Section 25 of the Budget Stabilization Act.
| 16 | | Notwithstanding any other provision of this Section, the | 17 | | required State
contribution for State fiscal year 2005 and for | 18 | | fiscal year 2008 and each fiscal year thereafter through State | 19 | | fiscal year 2014, as
calculated under this Section and
| 20 | | certified under Section 2-134, shall not exceed an amount equal | 21 | | to (i) the
amount of the required State contribution that would | 22 | | have been calculated under
this Section for that fiscal year if | 23 | | the System had not received any payments
under subsection (d) | 24 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | 25 | | the portion of the State's total debt service payments for that | 26 | | fiscal
year on the bonds issued in fiscal year 2003 for the |
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| 1 | | purposes of that Section 7.2, as determined
and certified by | 2 | | the Comptroller, that is the same as the System's portion of
| 3 | | the total moneys distributed under subsection (d) of Section | 4 | | 7.2 of the General
Obligation Bond Act. In determining this | 5 | | maximum for State fiscal years 2008 through 2010, however, the | 6 | | amount referred to in item (i) shall be increased, as a | 7 | | percentage of the applicable employee payroll, in equal | 8 | | increments calculated from the sum of the required State | 9 | | contribution for State fiscal year 2007 plus the applicable | 10 | | portion of the State's total debt service payments for fiscal | 11 | | year 2007 on the bonds issued in fiscal year 2003 for the | 12 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 13 | | that, by State fiscal year 2011, the
State is contributing at | 14 | | the rate otherwise required under this Section.
| 15 | | (d) For purposes of determining the required State | 16 | | contribution to the System, the value of the System's assets | 17 | | shall be equal to the actuarial value of the System's assets, | 18 | | which shall be calculated as follows: | 19 | | As of June 30, 2008, the actuarial value of the System's | 20 | | assets shall be equal to the market value of the assets as of | 21 | | that date. In determining the actuarial value of the System's | 22 | | assets for fiscal years after June 30, 2008, any actuarial | 23 | | gains or losses from investment return incurred in a fiscal | 24 | | year shall be recognized in equal annual amounts over the | 25 | | 5-year period following that fiscal year. | 26 | | (e) For purposes of determining the required State |
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| 1 | | contribution to the system for a particular year, the actuarial | 2 | | value of assets shall be assumed to earn a rate of return equal | 3 | | to the system's actuarially assumed rate of return. | 4 | | (Source: P.A. 97-813, eff. 7-13-12; 98-599, eff. 6-1-14 .)
| 5 | | (40 ILCS 5/14-131)
| 6 | | Sec. 14-131. Contributions by State.
| 7 | | (a) The State shall make contributions to the System by | 8 | | appropriations of
amounts which, together with other employer | 9 | | contributions from trust, federal,
and other funds, employee | 10 | | contributions, investment income, and other income,
will be | 11 | | sufficient to meet the cost of maintaining and administering | 12 | | the System
on a 100% funded basis in accordance with actuarial | 13 | | recommendations by the end of State fiscal year 2044 .
| 14 | | For the purposes of this Section and Section 14-135.08, | 15 | | references to State
contributions refer only to employer | 16 | | contributions and do not include employee
contributions that | 17 | | are picked up or otherwise paid by the State or a
department on | 18 | | behalf of the employee.
| 19 | | (b) The Board shall determine the total amount of State | 20 | | contributions
required for each fiscal year on the basis of the | 21 | | actuarial tables and other
assumptions adopted by the Board, | 22 | | using the formula in subsection (e).
| 23 | | The Board shall also determine a State contribution rate | 24 | | for each fiscal
year, expressed as a percentage of payroll, | 25 | | based on the total required State
contribution for that fiscal |
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| 1 | | year (less the amount received by the System from
| 2 | | appropriations under Section 8.12 of the State Finance Act and | 3 | | Section 1 of the
State Pension Funds Continuing Appropriation | 4 | | Act, if any, for the fiscal year
ending on the June 30 | 5 | | immediately preceding the applicable November 15
certification | 6 | | deadline), the estimated payroll (including all forms of
| 7 | | compensation) for personal services rendered by eligible | 8 | | employees, and the
recommendations of the actuary.
| 9 | | For the purposes of this Section and Section 14.1 of the | 10 | | State Finance Act,
the term "eligible employees" includes | 11 | | employees who participate in the System,
persons who may elect | 12 | | to participate in the System but have not so elected,
persons | 13 | | who are serving a qualifying period that is required for | 14 | | participation,
and annuitants employed by a department as | 15 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 16 | | (c) Contributions shall be made by the several departments | 17 | | for each pay
period by warrants drawn by the State Comptroller | 18 | | against their respective
funds or appropriations based upon | 19 | | vouchers stating the amount to be so
contributed. These amounts | 20 | | shall be based on the full rate certified by the
Board under | 21 | | Section 14-135.08 for that fiscal year.
From the effective date | 22 | | of this amendatory Act of the 93rd General
Assembly through the | 23 | | payment of the final payroll from fiscal year 2004
| 24 | | appropriations, the several departments shall not make | 25 | | contributions
for the remainder of fiscal year 2004 but shall | 26 | | instead make payments
as required under subsection (a-1) of |
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| 1 | | Section 14.1 of the State Finance Act.
The several departments | 2 | | shall resume those contributions at the commencement of
fiscal | 3 | | year 2005.
| 4 | | (c-1) Notwithstanding subsection (c) of this Section, for | 5 | | fiscal years 2010, 2012, 2013, 2014, and 2015 only, | 6 | | contributions by the several departments are not required to be | 7 | | made for General Revenue Funds payrolls processed by the | 8 | | Comptroller. Payrolls paid by the several departments from all | 9 | | other State funds must continue to be processed pursuant to | 10 | | subsection (c) of this Section. | 11 | | (c-2) For State fiscal years 2010, 2012, 2013, 2014, and | 12 | | 2015 only, on or as soon as possible after the 15th day of each | 13 | | month, the Board shall submit vouchers for payment of State | 14 | | contributions to the System, in a total monthly amount of | 15 | | one-twelfth of the fiscal year General Revenue Fund | 16 | | contribution as certified by the System pursuant to Section | 17 | | 14-135.08 of the Illinois Pension Code. | 18 | | (d) If an employee is paid from trust funds or federal | 19 | | funds, the
department or other employer shall pay employer | 20 | | contributions from those funds
to the System at the certified | 21 | | rate, unless the terms of the trust or the
federal-State | 22 | | agreement preclude the use of the funds for that purpose, in
| 23 | | which case the required employer contributions shall be paid by | 24 | | the State.
From the effective date of this amendatory
Act of | 25 | | the 93rd General Assembly through the payment of the final
| 26 | | payroll from fiscal year 2004 appropriations, the department or |
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| 1 | | other
employer shall not pay contributions for the remainder of | 2 | | fiscal year
2004 but shall instead make payments as required | 3 | | under subsection (a-1) of
Section 14.1 of the State Finance | 4 | | Act. The department or other employer shall
resume payment of
| 5 | | contributions at the commencement of fiscal year 2005.
| 6 | | (e) For State fiscal years 2016 through 2045, the minimum | 7 | | contribution to the System to be made by the State for each | 8 | | fiscal year shall be an amount determined by the System to be | 9 | | sufficient to bring the total assets of the System up to 100% | 10 | | of the total actuarial liabilities of the System by the end of | 11 | | State fiscal year 2045. In making these determinations, the | 12 | | required State contribution shall be calculated each year as a | 13 | | level percentage of payroll over the years remaining to and | 14 | | including fiscal year 2045 and shall be determined under the | 15 | | projected unit credit actuarial cost method. | 16 | | For State fiscal year years 2015 through 2044 , the minimum | 17 | | contribution
to the System to be made by the State for the each | 18 | | fiscal year shall be an amount
determined by the System to be | 19 | | equal to the sum of (1) the State's portion of the projected | 20 | | normal cost for the that fiscal year, plus (2) an amount | 21 | | sufficient to bring the total assets of the
System up to 100% | 22 | | of the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2044. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a | 25 | | level percentage of payroll
over the years remaining to and | 26 | | including fiscal year 2044 and shall be
determined under the |
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| 1 | | projected unit cost method for fiscal year 2015 and under the | 2 | | entry age normal actuarial cost method for fiscal years 2016 | 3 | | through 2044 . | 4 | | For State fiscal years 2012 through 2014, the minimum | 5 | | contribution
to the System to be made by the State for each | 6 | | fiscal year shall be an amount
determined by the System to be | 7 | | sufficient to bring the total assets of the
System up to 90% of | 8 | | the total actuarial liabilities of the System by the end
of | 9 | | State fiscal year 2045. In making these determinations, the | 10 | | required State
contribution shall be calculated each year as a | 11 | | level percentage of payroll
over the years remaining to and | 12 | | including fiscal year 2045 and shall be
determined under the | 13 | | projected unit credit actuarial cost method.
| 14 | | For State fiscal years 1996 through 2005, the State | 15 | | contribution to
the System, as a percentage of the applicable | 16 | | employee payroll, shall be
increased in equal annual increments | 17 | | so that by State fiscal year 2011, the
State is contributing at | 18 | | the rate required under this Section; except that
(i) for State | 19 | | fiscal year 1998, for all purposes of this Code and any other
| 20 | | law of this State, the certified percentage of the applicable | 21 | | employee payroll
shall be 5.052% for employees earning eligible | 22 | | creditable service under Section
14-110 and 6.500% for all | 23 | | other employees, notwithstanding any contrary
certification | 24 | | made under Section 14-135.08 before the effective date of this
| 25 | | amendatory Act of 1997, and (ii)
in the following specified | 26 | | State fiscal years, the State contribution to
the System shall |
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| 1 | | not be less than the following indicated percentages of the
| 2 | | applicable employee payroll, even if the indicated percentage | 3 | | will produce a
State contribution in excess of the amount | 4 | | otherwise required under this
subsection and subsection (a):
| 5 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 6 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution to the System for State | 9 | | fiscal year 2006 is $203,783,900.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution to the System for State | 12 | | fiscal year 2007 is $344,164,400.
| 13 | | For each of State fiscal years 2008 through 2009, the State | 14 | | contribution to
the System, as a percentage of the applicable | 15 | | employee payroll, shall be
increased in equal annual increments | 16 | | from the required State contribution for State fiscal year | 17 | | 2007, so that by State fiscal year 2011, the
State is | 18 | | contributing at the rate otherwise required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State General Revenue Fund contribution for | 21 | | State fiscal year 2010 is $723,703,100 and shall be made from | 22 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 23 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 24 | | pro rata share of bond sale expenses determined by the System's | 25 | | share of total bond proceeds, (ii) any amounts received from | 26 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
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| 1 | | reduction in bond proceeds due to the issuance of discounted | 2 | | bonds, if applicable. | 3 | | Notwithstanding any other provision of this Article, the
| 4 | | total required State General Revenue Fund contribution for
| 5 | | State fiscal year 2011 is the amount recertified by the System | 6 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 7 | | shall be made from
the proceeds of bonds sold in fiscal year | 8 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 9 | | Act, less (i) the
pro rata share of bond sale expenses | 10 | | determined by the System's
share of total bond proceeds, (ii) | 11 | | any amounts received from
the General Revenue Fund in fiscal | 12 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 13 | | issuance of discounted
bonds, if applicable. | 14 | | Beginning in State fiscal year 2046 2045 , the minimum State | 15 | | contribution for each fiscal year shall be the amount needed to | 16 | | maintain the total assets of the System at 100% of the total | 17 | | actuarial liabilities of the System.
| 18 | | Amounts received by the System pursuant to Section 25 of | 19 | | the Budget Stabilization Act or Section 8.12 of the State | 20 | | Finance Act in any fiscal year do not reduce and do not | 21 | | constitute payment of any portion of the minimum State | 22 | | contribution required under this Article in that fiscal year. | 23 | | Such amounts shall not reduce, and shall not be included in the | 24 | | calculation of, the required State contributions under this | 25 | | Article in any future year until the System has reached a | 26 | | funding ratio of at least 100%. A reference in this Article to |
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| 1 | | the "required State contribution" or any substantially similar | 2 | | term does not include or apply to any amounts payable to the | 3 | | System under Section 25 of the Budget Stabilization Act.
| 4 | | Notwithstanding any other provision of this Section, the | 5 | | required State
contribution for State fiscal year 2005 and for | 6 | | fiscal year 2008 and each fiscal year thereafter through State | 7 | | fiscal year 2014, as
calculated under this Section and
| 8 | | certified under Section 14-135.08, shall not exceed an amount | 9 | | equal to (i) the
amount of the required State contribution that | 10 | | would have been calculated under
this Section for that fiscal | 11 | | year if the System had not received any payments
under | 12 | | subsection (d) of Section 7.2 of the General Obligation Bond | 13 | | Act, minus
(ii) the portion of the State's total debt service | 14 | | payments for that fiscal
year on the bonds issued in fiscal | 15 | | year 2003 for the purposes of that Section 7.2, as determined
| 16 | | and certified by the Comptroller, that is the same as the | 17 | | System's portion of
the total moneys distributed under | 18 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 19 | | Act. In determining this maximum for State fiscal years 2008 | 20 | | through 2010, however, the amount referred to in item (i) shall | 21 | | be increased, as a percentage of the applicable employee | 22 | | payroll, in equal increments calculated from the sum of the | 23 | | required State contribution for State fiscal year 2007 plus the | 24 | | applicable portion of the State's total debt service payments | 25 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 26 | | for the purposes of Section 7.2 of the General
Obligation Bond |
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| 1 | | Act, so that, by State fiscal year 2011, the
State is | 2 | | contributing at the rate otherwise required under this Section.
| 3 | | (f) After the submission of all payments for eligible | 4 | | employees
from personal services line items in fiscal year 2004 | 5 | | have been made,
the Comptroller shall provide to the System a | 6 | | certification of the sum
of all fiscal year 2004 expenditures | 7 | | for personal services that would
have been covered by payments | 8 | | to the System under this Section if the
provisions of this | 9 | | amendatory Act of the 93rd General Assembly had not been
| 10 | | enacted. Upon
receipt of the certification, the System shall | 11 | | determine the amount
due to the System based on the full rate | 12 | | certified by the Board under
Section 14-135.08 for fiscal year | 13 | | 2004 in order to meet the State's
obligation under this | 14 | | Section. The System shall compare this amount
due to the amount | 15 | | received by the System in fiscal year 2004 through
payments | 16 | | under this Section and under Section 6z-61 of the State Finance | 17 | | Act.
If the amount
due is more than the amount received, the | 18 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 19 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 20 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 21 | | Continuing Appropriation Act. If the amount due is less than | 22 | | the
amount received, the
difference shall be termed the "Fiscal | 23 | | Year 2004 Overpayment" for purposes of
this Section, and the | 24 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 25 | | the Pension Contribution Fund as soon as practicable
after the | 26 | | certification.
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| 1 | | (g) 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 | | (h) 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 | | (i) After the submission of all payments for eligible | 17 | | employees from personal services line items paid from the | 18 | | General Revenue Fund in fiscal year 2010 have been made, the | 19 | | Comptroller shall provide to the System a certification of the | 20 | | sum of all fiscal year 2010 expenditures for personal services | 21 | | that would have been covered by payments to the System under | 22 | | this Section if the provisions of this amendatory Act of the | 23 | | 96th General Assembly had not been enacted. Upon receipt of the | 24 | | certification, the System shall determine the amount due to the | 25 | | System based on the full rate certified by the Board under | 26 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
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| 1 | | State's obligation under this Section. The System shall compare | 2 | | this amount due to the amount received by the System in fiscal | 3 | | year 2010 through payments under this Section. If the amount | 4 | | due is more than the amount received, the difference shall be | 5 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 6 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 7 | | under Section 1.2 of the State Pension Funds Continuing | 8 | | Appropriation Act. If the amount due is less than the amount | 9 | | received, the difference shall be termed the "Fiscal Year 2010 | 10 | | Overpayment" for purposes of this Section, and the Fiscal Year | 11 | | 2010 Overpayment shall be repaid by the System to the General | 12 | | Revenue Fund as soon as practicable after the certification. | 13 | | (j) After the submission of all payments for eligible | 14 | | employees from personal services line items paid from the | 15 | | General Revenue Fund in fiscal year 2011 have been made, the | 16 | | Comptroller shall provide to the System a certification of the | 17 | | sum of all fiscal year 2011 expenditures for personal services | 18 | | that would have been covered by payments to the System under | 19 | | this Section if the provisions of this amendatory Act of the | 20 | | 96th General Assembly had not been enacted. Upon receipt of the | 21 | | certification, the System shall determine the amount due to the | 22 | | System based on the full rate certified by the Board under | 23 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 24 | | State's obligation under this Section. The System shall compare | 25 | | this amount due to the amount received by the System in fiscal | 26 | | year 2011 through payments under this Section. If the amount |
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| 1 | | due is more than the amount received, the difference shall be | 2 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 3 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 4 | | under Section 1.2 of the State Pension Funds Continuing | 5 | | Appropriation Act. If the amount due is less than the amount | 6 | | received, the difference shall be termed the "Fiscal Year 2011 | 7 | | Overpayment" for purposes of this Section, and the Fiscal Year | 8 | | 2011 Overpayment shall be repaid by the System to the General | 9 | | Revenue Fund as soon as practicable after the certification. | 10 | | (k) For fiscal years 2012 through 2015 only, after the | 11 | | submission of all payments for eligible employees from personal | 12 | | services line items paid from the General Revenue Fund in the | 13 | | fiscal year have been made, the Comptroller shall provide to | 14 | | the System a certification of the sum of all expenditures in | 15 | | the fiscal year for personal services. Upon receipt of the | 16 | | certification, the System shall determine the amount due to the | 17 | | System based on the full rate certified by the Board under | 18 | | Section 14-135.08 for the fiscal year in order to meet the | 19 | | State's obligation under this Section. The System shall compare | 20 | | this amount due to the amount received by the System for the | 21 | | fiscal year. If the amount due is more than the amount | 22 | | received, the difference shall be termed the "Prior Fiscal Year | 23 | | Shortfall" for purposes of this Section, and the Prior Fiscal | 24 | | Year Shortfall shall be satisfied under Section 1.2 of the | 25 | | State Pension Funds Continuing Appropriation Act. If the amount | 26 | | due is less than the amount received, the difference shall be |
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| 1 | | termed the "Prior Fiscal Year Overpayment" for purposes of this | 2 | | Section, and the Prior Fiscal Year Overpayment shall be repaid | 3 | | by the System to the General Revenue Fund as soon as | 4 | | practicable after the certification. | 5 | | (Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, | 6 | | eff. 6-19-13; 98-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
| 7 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 8 | | Sec. 15-155. Employer contributions.
| 9 | | (a) The State of Illinois shall make contributions by | 10 | | appropriations of
amounts which, together with the other | 11 | | employer contributions from trust,
federal, and other funds, | 12 | | employee contributions, income from investments,
and other | 13 | | income of this System, will be sufficient to meet the cost of
| 14 | | maintaining and administering the System on a 100% funded basis | 15 | | in accordance
with actuarial recommendations by the end of | 16 | | State fiscal year 2044 .
| 17 | | The Board shall determine the amount of State contributions | 18 | | required for
each fiscal year on the basis of the actuarial | 19 | | tables and other assumptions
adopted by the Board and the | 20 | | recommendations of the actuary, using the formula
in subsection | 21 | | (a-1).
| 22 | | (a-1) For State fiscal years 2016 through 2045, the minimum
| 23 | | contribution to the System to be made by the State for each
| 24 | | fiscal year shall be an amount determined by the System to be
| 25 | | sufficient to bring the total assets of the System up to 100% |
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| 1 | | of 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 State fiscal year years 2015 through 2044 , the minimum | 8 | | contribution
to the System to be made by the State for the each | 9 | | fiscal year shall be an amount
determined by the System to be | 10 | | equal to the sum of (1) the State's portion of the projected | 11 | | normal cost for the that fiscal year, plus (2) an amount | 12 | | sufficient to bring the total assets of the System up to 100% | 13 | | of the total actuarial liabilities of the System by the end of | 14 | | the State fiscal year 2044. 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 2044 and shall be determined under the | 18 | | projected unit cost method for fiscal year 2015 and under the | 19 | | entry age normal actuarial cost method for fiscal years 2016 | 20 | | through 2044 . | 21 | | For State fiscal years 2012 through 2014, the minimum | 22 | | contribution
to the System to be made by the State for each | 23 | | fiscal year shall be an amount
determined by the System to be | 24 | | sufficient to bring the total assets of the
System up to 90% of | 25 | | the total actuarial liabilities of the System by the end of
| 26 | | State fiscal year 2045. In making these determinations, the |
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| 1 | | required State
contribution shall be calculated each year as a | 2 | | level percentage of payroll
over the years remaining to and | 3 | | including fiscal year 2045 and shall be
determined under the | 4 | | projected unit credit actuarial cost method.
| 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 2045 , the minimum | 18 | | contribution
for each fiscal year shall be the amount
needed to | 19 | | maintain the total assets of the System at 100% of the total | 20 | | 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 100%. 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 through State | 10 | | fiscal year 2014, as
calculated under this Section and
| 11 | | certified under Section 15-165, shall not exceed an amount | 12 | | equal to (i) the
amount of the required State contribution that | 13 | | would have been calculated under
this Section for that fiscal | 14 | | year if the System had not received any payments
under | 15 | | subsection (d) of Section 7.2 of the General Obligation Bond | 16 | | Act, minus
(ii) the portion of the State's total debt service | 17 | | payments for that fiscal
year on the bonds issued in fiscal | 18 | | year 2003 for the purposes of that Section 7.2, as determined
| 19 | | and certified by the Comptroller, that is the same as the | 20 | | System's portion of
the total moneys distributed under | 21 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 22 | | Act. In determining this maximum for State fiscal years 2008 | 23 | | through 2010, however, the amount referred to in item (i) shall | 24 | | be increased, as a percentage of the applicable employee | 25 | | payroll, in equal increments calculated from the sum of the | 26 | | required State contribution for State fiscal year 2007 plus the |
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| 1 | | applicable portion of the State's total debt service payments | 2 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 3 | | for the purposes of Section 7.2 of the General
Obligation Bond | 4 | | Act, so that, by State fiscal year 2011, the
State is | 5 | | contributing at the rate otherwise required under this Section.
| 6 | | (b) If an employee is paid from trust or federal funds, the | 7 | | employer
shall pay to the Board contributions from those funds | 8 | | which are
sufficient to cover the accruing normal costs on | 9 | | behalf of the employee.
However, universities having employees | 10 | | who are compensated out of local
auxiliary funds, income funds, | 11 | | or service enterprise funds are not required
to pay such | 12 | | contributions on behalf of those employees. The local auxiliary
| 13 | | funds, income funds, and service enterprise funds of | 14 | | universities shall not be
considered trust funds for the | 15 | | purpose of this Article, but funds of alumni
associations, | 16 | | foundations, and athletic associations which are affiliated | 17 | | with
the universities included as employers under this Article | 18 | | and other employers
which do not receive State appropriations | 19 | | are considered to be trust funds for
the purpose of this | 20 | | Article.
| 21 | | (b-1) The City of Urbana and the City of Champaign shall | 22 | | each make
employer contributions to this System for their | 23 | | respective firefighter
employees who participate in this | 24 | | System pursuant to subsection (h) of Section
15-107. The rate | 25 | | of contributions to be made by those municipalities shall
be | 26 | | determined annually by the Board on the basis of the actuarial |
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| 1 | | assumptions
adopted by the Board and the recommendations of the | 2 | | actuary, and shall be
expressed as a percentage of salary for | 3 | | each such employee. The Board shall
certify the rate to the | 4 | | affected municipalities as soon as may be practical.
The | 5 | | employer contributions required under this subsection shall be | 6 | | remitted by
the municipality to the System at the same time and | 7 | | in the same manner as
employee contributions.
| 8 | | (c) Through State fiscal year 1995: The total employer | 9 | | contribution shall
be apportioned among the various funds of | 10 | | the State and other employers,
whether trust, federal, or other | 11 | | funds, in accordance with actuarial procedures
approved by the | 12 | | Board. State of Illinois contributions for employers receiving
| 13 | | State appropriations for personal services shall be payable | 14 | | from appropriations
made to the employers or to the System. The | 15 | | contributions for Class I
community colleges covering earnings | 16 | | other than those paid from trust and
federal funds, shall be | 17 | | payable solely from appropriations to the Illinois
Community | 18 | | College Board or the System for employer contributions.
| 19 | | (d) Beginning in State fiscal year 1996, the required State | 20 | | contributions
to the System shall be appropriated directly to | 21 | | the System and shall be payable
through vouchers issued in | 22 | | accordance with subsection (c) of Section 15-165, except as | 23 | | provided in subsection (g).
| 24 | | (e) The State Comptroller shall draw warrants payable to | 25 | | the System upon
proper certification by the System or by the | 26 | | employer in accordance with the
appropriation laws and this |
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| 1 | | Code.
| 2 | | (f) Normal costs under this Section means liability for
| 3 | | pensions and other benefits which accrues to the System because | 4 | | of the
credits earned for service rendered by the participants | 5 | | during the
fiscal year and expenses of administering the | 6 | | System, but shall not
include the principal of or any | 7 | | redemption premium or interest on any bonds
issued by the Board | 8 | | or any expenses incurred or deposits required in
connection | 9 | | therewith.
| 10 | | (g) If the amount of a participant's earnings for any | 11 | | academic year used to determine the final rate of earnings, | 12 | | determined on a full-time equivalent basis, exceeds the amount | 13 | | of his or her earnings with the same employer for the previous | 14 | | academic year, determined on a full-time equivalent basis, by | 15 | | more than 6%, the participant's employer shall pay to the | 16 | | System, in addition to all other payments required under this | 17 | | Section and in accordance with guidelines established by the | 18 | | System, the present value of the increase in benefits resulting | 19 | | from the portion of the increase in earnings that is in excess | 20 | | of 6%. This present value shall be computed by the System on | 21 | | the basis of the actuarial assumptions and tables used in the | 22 | | most recent actuarial valuation of the System that is available | 23 | | at the time of the computation. The System may require the | 24 | | employer to provide any pertinent information or | 25 | | documentation. | 26 | | Whenever it determines that a payment is or may be required |
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| 1 | | under this subsection (g), the System shall calculate the | 2 | | amount of the payment and bill the employer for that amount. | 3 | | The bill shall specify the calculations used to determine the | 4 | | amount due. If the employer disputes the amount of the bill, it | 5 | | may, within 30 days after receipt of the bill, apply to the | 6 | | System in writing for a recalculation. The application must | 7 | | specify in detail the grounds of the dispute and, if the | 8 | | employer asserts that the calculation is subject to subsection | 9 | | (h) or (i) of this Section, must include an affidavit setting | 10 | | forth and attesting to all facts within the employer's | 11 | | knowledge that are pertinent to the applicability of subsection | 12 | | (h) or (i). Upon receiving a timely application for | 13 | | recalculation, the System shall review the application and, if | 14 | | appropriate, recalculate the amount due.
| 15 | | The employer contributions required under this subsection | 16 | | (g) 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 will be | 19 | | 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 | | (h) This subsection (h) applies only to payments made or | 25 | | salary increases given on or after June 1, 2005 but before July | 26 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
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| 1 | | require the System to refund any payments received before July | 2 | | 31, 2006 (the effective date of Public Act 94-1057). | 3 | | When assessing payment for any amount due under subsection | 4 | | (g), the System shall exclude earnings increases paid to | 5 | | participants under contracts or collective bargaining | 6 | | agreements entered into, amended, or renewed before June 1, | 7 | | 2005.
| 8 | | When assessing payment for any amount due under subsection | 9 | | (g), the System shall exclude earnings increases paid to a | 10 | | participant at a time when the participant is 10 or more years | 11 | | from retirement eligibility under Section 15-135.
| 12 | | When assessing payment for any amount due under subsection | 13 | | (g), the System shall exclude earnings increases resulting from | 14 | | overload work, including a contract for summer teaching, or | 15 | | overtime when the employer has certified to the System, and the | 16 | | System has approved the certification, that: (i) in the case of | 17 | | overloads (A) the overload work is for the sole purpose of | 18 | | academic instruction in excess of the standard number of | 19 | | instruction hours for a full-time employee occurring during the | 20 | | academic year that the overload is paid and (B) the earnings | 21 | | increases are equal to or less than the rate of pay for | 22 | | academic instruction computed using the participant's current | 23 | | salary rate and work schedule; and (ii) in the case of | 24 | | overtime, the overtime was necessary for the educational | 25 | | mission. | 26 | | When assessing payment for any amount due under subsection |
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| 1 | | (g), the System shall exclude any earnings increase resulting | 2 | | from (i) a promotion for which the employee moves from one | 3 | | classification to a higher classification under the State | 4 | | Universities Civil Service System, (ii) a promotion in academic | 5 | | rank for a tenured or tenure-track faculty position, or (iii) a | 6 | | promotion that the Illinois Community College Board has | 7 | | recommended in accordance with subsection (k) of this Section. | 8 | | These earnings increases shall be excluded only if the | 9 | | promotion is to a position that has existed and been filled by | 10 | | a member for no less than one complete academic year and the | 11 | | earnings increase as a result of the promotion is an increase | 12 | | that results in an amount no greater than the average salary | 13 | | paid for other similar positions. | 14 | | (i) When assessing payment for any amount due under | 15 | | subsection (g), the System shall exclude any salary increase | 16 | | described in subsection (h) of this Section given on or after | 17 | | July 1, 2011 but before July 1, 2014 under a contract or | 18 | | collective bargaining agreement entered into, amended, or | 19 | | renewed on or after June 1, 2005 but before July 1, 2011. | 20 | | Notwithstanding any other provision of this Section, any | 21 | | payments made or salary increases given after June 30, 2014 | 22 | | shall be used in assessing payment for any amount due under | 23 | | subsection (g) of this Section.
| 24 | | (j) The System shall prepare a report and file copies of | 25 | | the report with the Governor and the General Assembly by | 26 | | January 1, 2007 that contains all of the following information: |
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| 1 | | (1) The number of recalculations required by the | 2 | | changes made to this Section by Public Act 94-1057 for each | 3 | | employer. | 4 | | (2) The dollar amount by which each employer's | 5 | | contribution to the System was changed due to | 6 | | recalculations required by Public Act 94-1057. | 7 | | (3) The total amount the System received from each | 8 | | employer as a result of the changes made to this Section by | 9 | | Public Act 94-4. | 10 | | (4) The increase in the required State contribution | 11 | | resulting from the changes made to this Section by Public | 12 | | Act 94-1057. | 13 | | (k) The Illinois Community College Board shall adopt rules | 14 | | for recommending lists of promotional positions submitted to | 15 | | the Board by community colleges and for reviewing the | 16 | | promotional lists on an annual basis. When recommending | 17 | | promotional lists, the Board shall consider the similarity of | 18 | | the positions submitted to those positions recognized for State | 19 | | universities by the State Universities Civil Service System. | 20 | | The Illinois Community College Board shall file a copy of its | 21 | | findings with the System. The System shall consider the | 22 | | findings of the Illinois Community College Board when making | 23 | | determinations under this Section. The System shall not exclude | 24 | | any earnings increases resulting from a promotion when the | 25 | | promotion was not submitted by a community college. Nothing in | 26 | | this subsection (k) shall require any community college to |
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| 1 | | submit any information to the Community College Board.
| 2 | | (l) For purposes of determining the required State | 3 | | contribution to the System, the value of the System's assets | 4 | | shall be equal to the actuarial value of the System's assets, | 5 | | which shall be calculated as follows: | 6 | | As of June 30, 2008, the actuarial value of the System's | 7 | | assets shall be equal to the market value of the assets as of | 8 | | that date. In determining the actuarial value of the System's | 9 | | assets for fiscal years after June 30, 2008, any actuarial | 10 | | gains or losses from investment return incurred in a fiscal | 11 | | year shall be recognized in equal annual amounts over the | 12 | | 5-year period following that fiscal year. | 13 | | (m) For purposes of determining the required State | 14 | | contribution to the system for a particular year, the actuarial | 15 | | value of assets shall be assumed to earn a rate of return equal | 16 | | to the system's actuarially assumed rate of return. | 17 | | (Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13; | 18 | | 98-463, eff. 8-16-13; 98-599, eff. 6-1-14 .)
| 19 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 20 | | Sec. 16-158. Contributions by State and other employing | 21 | | units.
| 22 | | (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 |
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| 1 | | other income, will be sufficient to meet the cost of
| 2 | | maintaining and administering the System on a 100% funded basis | 3 | | in accordance
with actuarial recommendations by the end of | 4 | | State fiscal year 2044 .
| 5 | | The Board shall determine the amount of State contributions | 6 | | required for
each fiscal year on the basis of the actuarial | 7 | | tables and other assumptions
adopted by the Board and the | 8 | | recommendations of the actuary, using the formula
in subsection | 9 | | (b-3).
| 10 | | (a-1) Annually, on or before November 15 through November | 11 | | 15, 2011, the Board shall certify to the
Governor the amount of | 12 | | the required State contribution for the coming fiscal
year. The | 13 | | certification under this subsection (a-1) shall include a copy | 14 | | of the actuarial recommendations
upon which it is based.
| 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 this amendatory Act of the 94th General Assembly.
| 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. | 18 | | On or before January 15, 2013 and each January 15 | 19 | | thereafter, the Board shall certify to the Governor and the | 20 | | General Assembly the amount of the required State contribution | 21 | | for the next fiscal year. The certification shall include a | 22 | | copy of the actuarial
recommendations upon which it is based | 23 | | and shall specifically identify the System's projected State | 24 | | normal cost for that fiscal year. The Board's certification | 25 | | must note any deviations from the State Actuary's recommended | 26 | | changes, the reason or reasons for not following the State |
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| 1 | | Actuary's recommended changes, and the fiscal impact of not | 2 | | following the State Actuary's recommended changes on the | 3 | | required State contribution. | 4 | | (a-10) For purposes of Section (c-5) of Section 20 of the | 5 | | Budget Stabilization Act, on or before November 1 of each year | 6 | | beginning November 1, 2014, the Board shall determine the | 7 | | amount of the State contribution to the System that would have | 8 | | been required for the next fiscal year if this amendatory Act | 9 | | of the 98th General Assembly had not taken effect, using the | 10 | | best and most recent available data but based on the law in | 11 | | effect on May 31, 2014. The Board shall submit to the State | 12 | | Actuary, the Governor, and the General Assembly a proposed | 13 | | certification, along with the relevant law, actuarial | 14 | | assumptions, calculations, and data upon which that | 15 | | certification is based. On or before January 1, 2015 and every | 16 | | January 1 thereafter, the State Actuary shall issue a | 17 | | preliminary report concerning the proposed certification and | 18 | | identifying, if necessary, recommended changes in actuarial | 19 | | assumptions that the Board must consider before finalizing its | 20 | | certification. On or before January 15, 2015 and every January | 21 | | 1 thereafter, the Board shall certify to the Governor and the | 22 | | General Assembly the amount of the State contribution to the | 23 | | System that would have been required for the next fiscal year | 24 | | if this amendatory Act of the 98th General Assembly had not | 25 | | taken effect, using the best and most recent available data but | 26 | | based on the law in effect on May 31, 2014. The Board's |
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| 1 | | certification must note any deviations from the State Actuary's | 2 | | recommended changes, the reason or reasons for not following | 3 | | the State Actuary's recommended changes, and the impact of not | 4 | | following the State Actuary's recommended changes. | 5 | | (b) Through State fiscal year 1995, the State contributions | 6 | | shall be
paid to the System in accordance with Section 18-7 of | 7 | | the School Code.
| 8 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 9 | | of each month,
or as soon thereafter as may be practicable, the | 10 | | Board shall submit vouchers
for payment of State contributions | 11 | | to the System, in a total monthly amount of
one-twelfth of the | 12 | | required annual State contribution certified under
subsection | 13 | | (a-1).
From the
effective date of this amendatory Act of the | 14 | | 93rd General Assembly
through June 30, 2004, the Board shall | 15 | | not submit vouchers for the
remainder of fiscal year 2004 in | 16 | | excess of the fiscal year 2004
certified contribution amount | 17 | | determined under this Section
after taking into consideration | 18 | | the transfer to the System
under subsection (a) of Section | 19 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 20 | | the State Comptroller and
Treasurer by warrants drawn on the | 21 | | funds appropriated to the System for that
fiscal year.
| 22 | | If in any month the amount remaining unexpended from all | 23 | | other appropriations
to the System for the applicable fiscal | 24 | | year (including the appropriations to
the System under Section | 25 | | 8.12 of the State Finance Act and Section 1 of the
State | 26 | | Pension Funds Continuing Appropriation Act) is less than the |
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| 1 | | 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.
| 5 | | (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.
| 8 | | (b-3) For State fiscal years 2016 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 100%
| 12 | | of the total actuarial liabilities of the System by the end of | 13 | | 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. | 18 | | For State fiscal year years 2015 through 2044 , the minimum | 19 | | contribution
to the System to be made by the State for the each | 20 | | fiscal year shall be an amount
determined by the System to be | 21 | | equal to the sum of (1) the State's portion of the projected | 22 | | normal cost for the that fiscal year, plus (2) an amount | 23 | | sufficient to bring the total assets of the
System up to 100% | 24 | | of the total actuarial liabilities of the System by the end of
| 25 | | State fiscal year 2044. In making these determinations, the | 26 | | required State
contribution shall be calculated each year as a |
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| 1 | | level percentage of payroll
over the years remaining to and | 2 | | including fiscal year 2044 and shall be
determined under the | 3 | | projected unit cost method for fiscal year 2015 and under the | 4 | | entry age normal actuarial cost method for fiscal years 2016 | 5 | | through 2044 . | 6 | | For State fiscal years 2012 through 2014, the minimum | 7 | | contribution
to the System to be made by the State for each | 8 | | fiscal year shall be an amount
determined by the System to be | 9 | | sufficient to bring the total assets of the
System up to 90% of | 10 | | the total actuarial liabilities of the System by the end of
| 11 | | State fiscal year 2045. In making these determinations, the | 12 | | required State
contribution shall be calculated each year as a | 13 | | level percentage of payroll
over the years remaining to and | 14 | | including fiscal year 2045 and shall be
determined under the | 15 | | projected unit credit actuarial cost method.
| 16 | | For State fiscal years 1996 through 2005, the State | 17 | | contribution to the
System, as a percentage of the applicable | 18 | | employee payroll, shall be increased
in equal annual increments | 19 | | so that by State fiscal year 2011, the State is
contributing at | 20 | | the rate required under this Section; except that in the
| 21 | | following specified State fiscal years, the State contribution | 22 | | to the System
shall not be less than the following indicated | 23 | | percentages of the applicable
employee payroll, even if the | 24 | | indicated percentage will produce a State
contribution in | 25 | | excess of the amount otherwise required under this subsection
| 26 | | and subsection (a), and notwithstanding any contrary |
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| 1 | | certification made under
subsection (a-1) before the effective | 2 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 3 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 4 | | 2003; and
13.56% in FY 2004.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State
contribution for State fiscal year 2006 is | 7 | | $534,627,700.
| 8 | | Notwithstanding any other provision of this Article, the | 9 | | total required State
contribution for State fiscal year 2007 is | 10 | | $738,014,500.
| 11 | | For each of State fiscal years 2008 through 2009, the State | 12 | | contribution to
the System, as a percentage of the applicable | 13 | | employee payroll, shall be
increased in equal annual increments | 14 | | from the required State contribution for State fiscal year | 15 | | 2007, so that by State fiscal year 2011, the
State is | 16 | | contributing at the rate otherwise required under this Section.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State contribution for State fiscal year 2010 is | 19 | | $2,089,268,000 and shall be made from the proceeds of bonds | 20 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 21 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 22 | | expenses determined by the System's share of total bond | 23 | | proceeds, (ii) any amounts received from the Common School Fund | 24 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 25 | | due to the issuance of discounted bonds, if applicable. | 26 | | Notwithstanding any other provision of this Article, the
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| 1 | | total required State contribution for State fiscal year 2011 is
| 2 | | the amount recertified by the System on or before April 1, 2011 | 3 | | pursuant to subsection (a-1) of this Section and shall be made | 4 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 5 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 6 | | pro rata share of bond sale
expenses determined by the System's | 7 | | share of total bond
proceeds, (ii) any amounts received from | 8 | | the Common School Fund
in fiscal year 2011, and (iii) any | 9 | | reduction in bond proceeds
due to the issuance of discounted | 10 | | bonds, if applicable. This amount shall include, in addition to | 11 | | the amount certified by the System, an amount necessary to meet | 12 | | employer contributions required by the State as an employer | 13 | | under paragraph (e) of this Section, which may also be used by | 14 | | the System for contributions required by paragraph (a) of | 15 | | Section 16-127. | 16 | | Beginning in State fiscal year 2046 2045 , the minimum State | 17 | | contribution for each fiscal year shall be the amount needed to | 18 | | maintain the total assets of the System at 100% of the total | 19 | | actuarial liabilities of the System.
| 20 | | Amounts received by the System pursuant to Section 25 of | 21 | | the Budget Stabilization Act or Section 8.12 of the State | 22 | | Finance Act in any fiscal year do not reduce and do not | 23 | | constitute payment of any portion of the minimum State | 24 | | contribution required under this Article in that fiscal year. | 25 | | Such amounts shall not reduce, and shall not be included in the | 26 | | calculation of, the required State contributions under this |
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| 1 | | Article in any future year until the System has reached a | 2 | | funding ratio of at least 100%. A reference in this Article to | 3 | | the "required State contribution" or any substantially similar | 4 | | term does not include or apply to any amounts payable to the | 5 | | System under Section 25 of the Budget Stabilization Act. | 6 | | Notwithstanding any other provision of this Section, the | 7 | | required State
contribution for State fiscal year 2005 and for | 8 | | fiscal year 2008 and each fiscal year thereafter through State | 9 | | fiscal year 2014, as
calculated under this Section and
| 10 | | certified under subsection (a-1), shall not exceed an amount | 11 | | equal to (i) the
amount of the required State contribution that | 12 | | would have been calculated under
this Section for that fiscal | 13 | | year if the System had not received any payments
under | 14 | | subsection (d) of Section 7.2 of the General Obligation Bond | 15 | | Act, minus
(ii) the portion of the State's total debt service | 16 | | payments for that fiscal
year on the bonds issued in fiscal | 17 | | year 2003 for the purposes of that Section 7.2, as determined
| 18 | | and certified by the Comptroller, that is the same as the | 19 | | System's portion of
the total moneys distributed under | 20 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 21 | | Act. In determining this maximum for State fiscal years 2008 | 22 | | through 2010, however, the amount referred to in item (i) shall | 23 | | be increased, as a percentage of the applicable employee | 24 | | payroll, in equal increments calculated from the sum of the | 25 | | required State contribution for State fiscal year 2007 plus the | 26 | | applicable portion of the State's total debt service payments |
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| 1 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 2 | | for the purposes of Section 7.2 of the General
Obligation Bond | 3 | | Act, so that, by State fiscal year 2011, the
State is | 4 | | contributing at the rate otherwise required under this Section.
| 5 | | (c) Payment of the required State contributions and of all | 6 | | pensions,
retirement annuities, death benefits, refunds, and | 7 | | other benefits granted
under or assumed by this System, and all | 8 | | expenses in connection with the
administration and operation | 9 | | thereof, are obligations of the State.
| 10 | | If members are paid from special trust or federal funds | 11 | | which are
administered by the employing unit, whether school | 12 | | district or other
unit, the employing unit shall pay to the | 13 | | System from such
funds the full accruing retirement costs based | 14 | | upon that
service, which, beginning July 1, 2014, shall be at a | 15 | | rate, expressed as a percentage of salary, equal to the total | 16 | | minimum contribution
to the System to be made by the State for | 17 | | that fiscal year, including both normal cost and unfunded | 18 | | liability components, expressed as a percentage of payroll, as | 19 | | determined by the System under subsection (b-3) of this | 20 | | Section. Employer contributions, based on
salary paid to | 21 | | members from federal funds, may be forwarded by the | 22 | | distributing
agency of the State of Illinois to the System | 23 | | prior to allocation, in an
amount determined in accordance with | 24 | | guidelines established by such
agency and the System. Any | 25 | | contribution for fiscal year 2015 collected as a result of the | 26 | | change made by this amendatory Act of the 98th General Assembly |
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| 1 | | shall be considered a State contribution under subsection (b-3) | 2 | | of this Section.
| 3 | | (d) Effective July 1, 1986, any employer of a teacher as | 4 | | defined in
paragraph (8) of Section 16-106 shall pay the | 5 | | employer's normal cost
of benefits based upon the teacher's | 6 | | service, in addition to
employee contributions, as determined | 7 | | by the System. Such employer
contributions shall be forwarded | 8 | | monthly in accordance with guidelines
established by the | 9 | | System.
| 10 | | However, with respect to benefits granted under Section | 11 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 12 | | of Section 16-106, the
employer's contribution shall be 12% | 13 | | (rather than 20%) of the member's
highest annual salary rate | 14 | | for each year of creditable service granted, and
the employer | 15 | | shall also pay the required employee contribution on behalf of
| 16 | | the teacher. For the purposes of Sections 16-133.4 and | 17 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 18 | | 16-106 who is serving in that capacity
while on leave of | 19 | | absence from another employer under this Article shall not
be | 20 | | considered an employee of the employer from which the teacher | 21 | | is on leave.
| 22 | | (e) Beginning July 1, 1998, every employer of a teacher
| 23 | | shall pay to the System an employer contribution computed as | 24 | | follows:
| 25 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 26 | | employer
contribution shall be equal to 0.3% of each |
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| 1 | | teacher's salary.
| 2 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 3 | | contribution shall be equal to 0.58% of each teacher's | 4 | | salary.
| 5 | | The school district or other employing unit may pay these | 6 | | employer
contributions out of any source of funding available | 7 | | for that purpose and
shall forward the contributions to the | 8 | | System on the schedule established
for the payment of member | 9 | | contributions.
| 10 | | These employer contributions are intended to offset a | 11 | | portion of the cost
to the System of the increases in | 12 | | retirement benefits resulting from this
amendatory Act of 1998.
| 13 | | Each employer of teachers is entitled to a credit against | 14 | | the contributions
required under this subsection (e) with | 15 | | respect to salaries paid to teachers
for the period January 1, | 16 | | 2002 through June 30, 2003, equal to the amount paid
by that | 17 | | employer under subsection (a-5) of Section 6.6 of the State | 18 | | Employees
Group Insurance Act of 1971 with respect to salaries | 19 | | paid to teachers for that
period.
| 20 | | The additional 1% employee contribution required under | 21 | | Section 16-152 by
this amendatory Act of 1998 is the | 22 | | responsibility of the teacher and not the
teacher's employer, | 23 | | unless the employer agrees, through collective bargaining
or | 24 | | otherwise, to make the contribution on behalf of the teacher.
| 25 | | If an employer is required by a contract in effect on May | 26 | | 1, 1998 between the
employer and an employee organization to |
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| 1 | | pay, on behalf of all its full-time
employees
covered by this | 2 | | Article, all mandatory employee contributions required under
| 3 | | this Article, then the employer shall be excused from paying | 4 | | the employer
contribution required under this subsection (e) | 5 | | for the balance of the term
of that contract. The employer and | 6 | | the employee organization shall jointly
certify to the System | 7 | | the existence of the contractual requirement, in such
form as | 8 | | the System may prescribe. This exclusion shall cease upon the
| 9 | | termination, extension, or renewal of the contract at any time | 10 | | after May 1,
1998.
| 11 | | (f) If the amount of a teacher's salary for any school year | 12 | | used to determine final average salary exceeds the member's | 13 | | annual full-time salary rate with the same employer for the | 14 | | previous school year by more than 6%, the teacher's employer | 15 | | shall pay to the System, in addition to all other payments | 16 | | required under this Section and in accordance with guidelines | 17 | | established by the System, the present value of the increase in | 18 | | benefits resulting from the portion of the increase in salary | 19 | | that is in excess of 6%. This present value shall be computed | 20 | | by the System on the basis of the actuarial assumptions and | 21 | | tables used in the most recent actuarial valuation of the | 22 | | System that is available at the time of the computation. If a | 23 | | teacher's salary for the 2005-2006 school year is used to | 24 | | determine final average salary under this subsection (f), then | 25 | | the changes made to this subsection (f) by Public Act 94-1057 | 26 | | shall apply in calculating whether the increase in his or her |
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| 1 | | salary is in excess of 6%. For the purposes of this Section, | 2 | | change in employment under Section 10-21.12 of the School Code | 3 | | on or after June 1, 2005 shall constitute a change in employer. | 4 | | The System may require the employer to provide any pertinent | 5 | | information or documentation.
The changes made to this | 6 | | subsection (f) by this amendatory Act of the 94th General | 7 | | Assembly apply without regard to whether the teacher was in | 8 | | service on or after its effective date.
| 9 | | Whenever it determines that a payment is or may be required | 10 | | under this subsection, the System shall calculate the amount of | 11 | | the payment and bill the employer for that amount. The bill | 12 | | shall specify the calculations used to determine the amount | 13 | | due. If the employer disputes the amount of the bill, it may, | 14 | | within 30 days after receipt of the bill, apply to the System | 15 | | in writing for a recalculation. The application must specify in | 16 | | detail the grounds of the dispute and, if the employer asserts | 17 | | that the calculation is subject to subsection (g) or (h) of | 18 | | this Section, must include an affidavit setting forth and | 19 | | attesting to all facts within the employer's knowledge that are | 20 | | pertinent to the applicability of that subsection. Upon | 21 | | receiving a timely application for recalculation, the System | 22 | | shall review the application and, if appropriate, recalculate | 23 | | the amount due.
| 24 | | The employer contributions required under this subsection | 25 | | (f) 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 will be | 2 | | 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 | | (j) For purposes of determining the required State | 24 | | contribution to the System, the value of the System's assets | 25 | | shall be equal to the actuarial value of the System's assets, | 26 | | which shall be calculated as follows: |
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| 1 | | As of June 30, 2008, the actuarial value of the System's | 2 | | assets shall be equal to the market value of the assets as of | 3 | | that date. In determining the actuarial value of the System's | 4 | | assets for fiscal years after June 30, 2008, any actuarial | 5 | | gains or losses from investment return incurred in a fiscal | 6 | | year shall be recognized in equal annual amounts over the | 7 | | 5-year period following that fiscal year. | 8 | | (k) For purposes of determining the required State | 9 | | contribution to the system for a particular year, the actuarial | 10 | | value of assets shall be assumed to earn a rate of return equal | 11 | | to the system's actuarially assumed rate of return. | 12 | | (Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12; | 13 | | 98-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
| 14 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 15 | | Sec. 18-131. Financing; employer contributions.
| 16 | | (a) The State of Illinois shall make contributions to this | 17 | | System by
appropriations of the amounts which, together with | 18 | | the contributions of
participants, net earnings on | 19 | | investments, and other income, will meet the
costs of | 20 | | maintaining and administering this System on a 100% 90% funded | 21 | | basis in
accordance with actuarial recommendations.
| 22 | | (b) The Board shall determine the amount of State | 23 | | contributions
required for each fiscal year on the basis of the | 24 | | actuarial tables and other
assumptions adopted by the Board and | 25 | | the prescribed rate of interest, using
the formula in |
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| 1 | | subsection (c).
| 2 | | (c) For State fiscal years 2016 through 2045, the minimum | 3 | | contribution to the System to be made by the State for each | 4 | | fiscal year shall be an amount determined by the System to be | 5 | | sufficient to bring the total assets of the System up to 100% | 6 | | of the total actuarial liabilities of the System by the end of | 7 | | State fiscal year 2045. In making these determinations, the | 8 | | required State contribution shall be calculated each year as a | 9 | | level percentage of payroll over the years remaining to and | 10 | | including fiscal year 2045 and shall be determined under the | 11 | | projected unit credit actuarial cost method. | 12 | | For State fiscal years 2012 through 2015 2045 , the minimum | 13 | | contribution
to the System to be made by the State for each | 14 | | fiscal year shall be an amount
determined by the System to be | 15 | | sufficient to bring the total assets of the
System up to 90% of | 16 | | the total actuarial liabilities of the System by the end of
| 17 | | State fiscal year 2045. In making these determinations, the | 18 | | required State
contribution shall be calculated each year as a | 19 | | level percentage of payroll
over the years remaining to and | 20 | | including fiscal year 2045 and shall be
determined under the | 21 | | projected unit credit actuarial cost method.
| 22 | | For State fiscal years 1996 through 2005, the State | 23 | | contribution to
the System, as a percentage of the applicable | 24 | | employee payroll, shall be
increased in equal annual increments | 25 | | so that by State fiscal year 2011, the
State is contributing at | 26 | | the rate required under this Section.
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| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution for State fiscal year 2006 is | 3 | | $29,189,400.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2007 is | 6 | | $35,236,800.
| 7 | | For each of State fiscal years 2008 through 2009, the State | 8 | | contribution to
the System, as a percentage of the applicable | 9 | | employee payroll, shall be
increased in equal annual increments | 10 | | from the required State contribution for State fiscal year | 11 | | 2007, so that by State fiscal year 2011, the
State is | 12 | | contributing at the rate otherwise required under this Section.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State contribution for State fiscal year 2010 is | 15 | | $78,832,000 and shall be made from the proceeds of bonds sold | 16 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 17 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 18 | | expenses determined by the System's share of total bond | 19 | | proceeds, (ii) any amounts received from the General Revenue | 20 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 21 | | proceeds due to the issuance of discounted bonds, if | 22 | | applicable. | 23 | | Notwithstanding any other provision of this Article, the | 24 | | total required State contribution for State fiscal year 2011 is
| 25 | | the amount recertified by the System on or before April 1, 2011 | 26 | | pursuant to Section 18-140 and shall be made from the proceeds |
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| 1 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 2 | | the General
Obligation Bond Act, less (i) the pro rata share of | 3 | | bond sale
expenses determined by the System's share of total | 4 | | bond
proceeds, (ii) any amounts received from the General | 5 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 6 | | bond
proceeds due to the issuance of discounted bonds, if
| 7 | | applicable. | 8 | | Beginning in State fiscal year 2046, the minimum State | 9 | | contribution for
each fiscal year shall be the amount needed to | 10 | | maintain the total assets of
the System at 100% 90% of the | 11 | | total actuarial liabilities of the System.
| 12 | | Amounts received by the System pursuant to Section 25 of | 13 | | the Budget Stabilization Act or Section 8.12 of the State | 14 | | Finance Act in any fiscal year do not reduce and do not | 15 | | constitute payment of any portion of the minimum State | 16 | | contribution required under this Article in that fiscal year. | 17 | | Such amounts shall not reduce, and shall not be included in the | 18 | | calculation of, the required State contributions under this | 19 | | Article in any future year until the System has reached a | 20 | | funding ratio of at least 100% 90% . A reference in this Article | 21 | | to the "required State contribution" or any substantially | 22 | | similar term does not include or apply to any amounts payable | 23 | | to the System under Section 25 of the Budget Stabilization Act.
| 24 | | Notwithstanding any other provision of this Section, the | 25 | | required State
contribution for State fiscal year 2005 and for | 26 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
| | | HB0254 | - 54 - | LRB099 04001 RPS 24018 b |
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| 1 | | under this Section and
certified under Section 18-140, shall | 2 | | not exceed an amount equal to (i) the
amount of the required | 3 | | State contribution that would have been calculated under
this | 4 | | Section for that fiscal year if the System had not received any | 5 | | payments
under subsection (d) of Section 7.2 of the General | 6 | | Obligation Bond Act, minus
(ii) the portion of the State's | 7 | | total debt service payments for that fiscal
year on the bonds | 8 | | issued in fiscal year 2003 for the purposes of that Section | 9 | | 7.2, as determined
and certified by the Comptroller, that is | 10 | | the same as the System's portion of
the total moneys | 11 | | distributed under subsection (d) of Section 7.2 of the General
| 12 | | Obligation Bond Act. In determining this maximum for State | 13 | | fiscal years 2008 through 2010, however, the amount referred to | 14 | | in item (i) shall be increased, as a percentage of the | 15 | | applicable employee payroll, in equal increments calculated | 16 | | from the sum of the required State contribution for State | 17 | | fiscal year 2007 plus the applicable portion of the State's | 18 | | total debt service payments for fiscal year 2007 on the bonds | 19 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 20 | | the General
Obligation Bond Act, so that, by State fiscal year | 21 | | 2011, the
State is contributing at the rate otherwise required | 22 | | under this Section.
| 23 | | (d) For purposes of determining the required State | 24 | | contribution to the System, the value of the System's assets | 25 | | shall be equal to the actuarial value of the System's assets, | 26 | | which shall be calculated as follows: |
| | | HB0254 | - 55 - | LRB099 04001 RPS 24018 b |
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| 1 | | As of June 30, 2008, the actuarial value of the System's | 2 | | assets shall be equal to the market value of the assets as of | 3 | | that date. In determining the actuarial value of the System's | 4 | | assets for fiscal years after June 30, 2008, any actuarial | 5 | | gains or losses from investment return incurred in a fiscal | 6 | | year shall be recognized in equal annual amounts over the | 7 | | 5-year period following that fiscal year. | 8 | | (e) For purposes of determining the required State | 9 | | contribution to the system for a particular year, the actuarial | 10 | | value of assets shall be assumed to earn a rate of return equal | 11 | | to the system's actuarially assumed rate of return. | 12 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 13 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 14 | | 7-13-12.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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