Full Text of HB2858 101st General Assembly
HB2858 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2858 Introduced , by Rep. Avery Bourne SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/16-158 | from Ch. 108 1/2, par. 16-158 |
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Amends the Downstate Teachers Article of the Illinois Pension Code. In a provision that requires an employer to make an additional contribution to the System for certain salary increases greater than 3%, excludes salary increases resulting from overload work or a promotion if certain requirements are met, from duties as a coach or advisor to an extracurricular activity, from the teacher earning additional higher education credits or a degree, or from substitute teaching. Makes conforming 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. The Illinois Pension Code is amended by changing | 5 | | Section 16-158 as follows:
| 6 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 7 | | Sec. 16-158. Contributions by State and other employing | 8 | | units.
| 9 | | (a) The State shall make contributions to the System by | 10 | | means of
appropriations from the Common School Fund and other | 11 | | State funds of amounts
which, together with other employer | 12 | | contributions, employee contributions,
investment income, and | 13 | | other income, will be sufficient to meet the cost of
| 14 | | maintaining and administering the System on a 90% funded basis | 15 | | in accordance
with actuarial recommendations.
| 16 | | The Board shall determine the amount of State contributions | 17 | | required for
each fiscal year on the basis of the actuarial | 18 | | tables and other assumptions
adopted by the Board and the | 19 | | recommendations of the actuary, using the formula
in subsection | 20 | | (b-3).
| 21 | | (a-1) Annually, on or before November 15 until November 15, | 22 | | 2011, the Board shall certify to the
Governor the amount of the | 23 | | required State contribution for the coming fiscal
year. The |
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| 1 | | certification under this subsection (a-1) shall include a copy | 2 | | of the actuarial recommendations
upon which it is based and | 3 | | shall specifically identify the System's projected State | 4 | | normal cost for that fiscal year.
| 5 | | On or before May 1, 2004, the Board shall recalculate and | 6 | | recertify to
the Governor the amount of the required State | 7 | | contribution to the System for
State fiscal year 2005, taking | 8 | | into account the amounts appropriated to and
received by the | 9 | | System under subsection (d) of Section 7.2 of the General
| 10 | | Obligation Bond Act.
| 11 | | On or before July 1, 2005, the Board shall recalculate and | 12 | | recertify
to the Governor the amount of the required State
| 13 | | contribution to the System for State fiscal year 2006, taking | 14 | | into account the changes in required State contributions made | 15 | | by Public Act 94-4.
| 16 | | On or before April 1, 2011, the Board shall recalculate and | 17 | | recertify to the Governor the amount of the required State | 18 | | contribution to the System for State fiscal year 2011, applying | 19 | | the changes made by Public Act 96-889 to the System's assets | 20 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 21 | | was approved on that date. | 22 | | (a-5) On or before November 1 of each year, beginning | 23 | | November 1, 2012, the Board shall submit to the State Actuary, | 24 | | the Governor, and the General Assembly a proposed certification | 25 | | of the amount of the required State contribution to the System | 26 | | for the next fiscal year, along with all of the actuarial |
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| 1 | | assumptions, calculations, and data upon which that proposed | 2 | | certification is based. On or before January 1 of each year, | 3 | | beginning January 1, 2013, the State Actuary shall issue a | 4 | | preliminary report concerning the proposed certification and | 5 | | identifying, if necessary, recommended changes in actuarial | 6 | | assumptions that the Board must consider before finalizing its | 7 | | certification of the required State contributions. On or before | 8 | | January 15, 2013 and each January 15 thereafter, the Board | 9 | | shall certify to the Governor and the General Assembly the | 10 | | amount of the required State contribution for the next fiscal | 11 | | year. The Board's certification must note any deviations from | 12 | | the State Actuary's recommended changes, the reason or reasons | 13 | | for not following the State Actuary's recommended changes, and | 14 | | the fiscal impact of not following the State Actuary's | 15 | | recommended changes on the required State contribution. | 16 | | (a-10) By November 1, 2017, the Board shall recalculate and | 17 | | recertify to the State Actuary, the Governor, and the General | 18 | | Assembly the amount of the State contribution to the System for | 19 | | State fiscal year 2018, taking into account the changes in | 20 | | required State contributions made by Public Act 100-23. The | 21 | | State Actuary shall review the assumptions and valuations | 22 | | underlying the Board's revised certification and issue a | 23 | | preliminary report concerning the proposed recertification and | 24 | | identifying, if necessary, recommended changes in actuarial | 25 | | assumptions that the Board must consider before finalizing its | 26 | | certification of the required State contributions. The Board's |
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| 1 | | final certification must note any deviations from the State | 2 | | Actuary's recommended changes, the reason or reasons for not | 3 | | following the State Actuary's recommended changes, and the | 4 | | fiscal impact of not following the State Actuary's recommended | 5 | | changes on the required State contribution. | 6 | | (a-15) On or after June 15, 2019, but no later than June | 7 | | 30, 2019, the Board shall recalculate and recertify to the | 8 | | Governor and the General Assembly the amount of the State | 9 | | contribution to the System for State fiscal year 2019, taking | 10 | | into account the changes in required State contributions made | 11 | | by Public Act 100-587 this amendatory Act of the 100th General | 12 | | Assembly . The recalculation shall be made using assumptions | 13 | | adopted by the Board for the original fiscal year 2019 | 14 | | certification. The monthly voucher for the 12th month of fiscal | 15 | | year 2019 shall be paid by the Comptroller after the | 16 | | recertification required pursuant to this subsection is | 17 | | submitted to the Governor, Comptroller, and General Assembly. | 18 | | The recertification submitted to the General Assembly shall be | 19 | | filed with the Clerk of the House of Representatives and the | 20 | | Secretary of the Senate in electronic form only, in the manner | 21 | | that the Clerk and the Secretary shall direct. | 22 | | (b) Through State fiscal year 1995, the State contributions | 23 | | shall be
paid to the System in accordance with Section 18-7 of | 24 | | the School Code.
| 25 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 26 | | of each month,
or as soon thereafter as may be practicable, the |
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| 1 | | Board shall submit vouchers
for payment of State contributions | 2 | | to the System, in a total monthly amount of
one-twelfth of the | 3 | | required annual State contribution certified under
subsection | 4 | | (a-1).
From March 5, 2004 (the
effective date of Public Act | 5 | | 93-665)
through June 30, 2004, the Board shall not submit | 6 | | vouchers for the
remainder of fiscal year 2004 in excess of the | 7 | | fiscal year 2004
certified contribution amount determined | 8 | | under this Section
after taking into consideration the transfer | 9 | | to the System
under subsection (a) of Section 6z-61 of the | 10 | | State Finance Act.
These vouchers shall be paid by the State | 11 | | Comptroller and
Treasurer by warrants drawn on the funds | 12 | | appropriated to the System for that
fiscal year.
| 13 | | If in any month the amount remaining unexpended from all | 14 | | other appropriations
to the System for the applicable fiscal | 15 | | year (including the appropriations to
the System under Section | 16 | | 8.12 of the State Finance Act and Section 1 of the
State | 17 | | Pension Funds Continuing Appropriation Act) is less than the | 18 | | amount
lawfully vouchered under this subsection, the | 19 | | difference shall be paid from the
Common School Fund under the | 20 | | continuing appropriation authority provided in
Section 1.1 of | 21 | | the State Pension Funds Continuing Appropriation Act.
| 22 | | (b-2) Allocations from the Common School Fund apportioned | 23 | | to school
districts not coming under this System shall not be | 24 | | diminished or affected by
the provisions of this Article.
| 25 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 26 | | contribution
to the System to be made by the State for each |
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| 1 | | fiscal year shall be an amount
determined by the System to be | 2 | | sufficient to bring the total assets of the
System up to 90% of | 3 | | the total actuarial liabilities of the System by the end of
| 4 | | State fiscal year 2045. In making these determinations, the | 5 | | required State
contribution shall be calculated each year as a | 6 | | level percentage of payroll
over the years remaining to and | 7 | | including fiscal year 2045 and shall be
determined under the | 8 | | projected unit credit actuarial cost method.
| 9 | | For each of State fiscal years 2018, 2019, and 2020, the | 10 | | State shall make an additional contribution to the System equal | 11 | | to 2% of the total payroll of each employee who is deemed to | 12 | | have elected the benefits under Section 1-161 or who has made | 13 | | the election under subsection (c) of Section 1-161. | 14 | | A change in an actuarial or investment assumption that | 15 | | increases or
decreases the required State contribution and | 16 | | first
applies in State fiscal year 2018 or thereafter shall be
| 17 | | implemented in equal annual amounts over a 5-year period
| 18 | | beginning in the State fiscal year in which the actuarial
| 19 | | change first applies to the required State contribution. | 20 | | A change in an actuarial or investment assumption that | 21 | | increases or
decreases the required State contribution and | 22 | | first
applied to the State contribution in fiscal year 2014, | 23 | | 2015, 2016, or 2017 shall be
implemented: | 24 | | (i) as already applied in State fiscal years before | 25 | | 2018; and | 26 | | (ii) in the portion of the 5-year period beginning in |
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| 1 | | the State fiscal year in which the actuarial
change first | 2 | | applied that occurs in State fiscal year 2018 or | 3 | | thereafter, by calculating the change in equal annual | 4 | | amounts over that 5-year period and then implementing it at | 5 | | the resulting annual rate in each of the remaining fiscal | 6 | | years in that 5-year period. | 7 | | For State fiscal years 1996 through 2005, the State | 8 | | contribution to the
System, as a percentage of the applicable | 9 | | employee payroll, shall be increased
in equal annual increments | 10 | | so that by State fiscal year 2011, the State is
contributing at | 11 | | the rate required under this Section; except that in the
| 12 | | following specified State fiscal years, the State contribution | 13 | | to the System
shall not be less than the following indicated | 14 | | percentages of the applicable
employee payroll, even if the | 15 | | indicated percentage will produce a State
contribution in | 16 | | excess of the amount otherwise required under this subsection
| 17 | | and subsection (a), and notwithstanding any contrary | 18 | | certification made under
subsection (a-1) before May 27, 1998 | 19 | | (the effective date of Public Act 90-582):
10.02% in FY 1999;
| 20 | | 10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% | 21 | | in FY 2003; and
13.56% in FY 2004.
| 22 | | Notwithstanding any other provision of this Article, the | 23 | | total required State
contribution for State fiscal year 2006 is | 24 | | $534,627,700.
| 25 | | Notwithstanding any other provision of this Article, the | 26 | | total required State
contribution for State fiscal year 2007 is |
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| 1 | | $738,014,500.
| 2 | | For each of State fiscal years 2008 through 2009, the State | 3 | | contribution to
the System, as a percentage of the applicable | 4 | | employee payroll, shall be
increased in equal annual increments | 5 | | from the required State contribution for State fiscal year | 6 | | 2007, so that by State fiscal year 2011, the
State is | 7 | | contributing at the rate otherwise required under this Section.
| 8 | | Notwithstanding any other provision of this Article, the | 9 | | total required State contribution for State fiscal year 2010 is | 10 | | $2,089,268,000 and shall be made from the proceeds of bonds | 11 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 12 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 13 | | expenses determined by the System's share of total bond | 14 | | proceeds, (ii) any amounts received from the Common School Fund | 15 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 16 | | due to the issuance of discounted bonds, if applicable. | 17 | | Notwithstanding any other provision of this Article, the
| 18 | | total required State contribution for State fiscal year 2011 is
| 19 | | the amount recertified by the System on or before April 1, 2011 | 20 | | pursuant to subsection (a-1) of this Section and shall be made | 21 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 22 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 23 | | pro rata share of bond sale
expenses determined by the System's | 24 | | share of total bond
proceeds, (ii) any amounts received from | 25 | | the Common School Fund
in fiscal year 2011, and (iii) any | 26 | | reduction in bond proceeds
due to the issuance of discounted |
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| 1 | | bonds, if applicable. This amount shall include, in addition to | 2 | | the amount certified by the System, an amount necessary to meet | 3 | | employer contributions required by the State as an employer | 4 | | under paragraph (e) of this Section, which may also be used by | 5 | | the System for contributions required by paragraph (a) of | 6 | | Section 16-127. | 7 | | Beginning in State fiscal year 2046, the minimum State | 8 | | contribution for
each fiscal year shall be the amount needed to | 9 | | maintain the total assets of
the System at 90% of the total | 10 | | actuarial liabilities of the System.
| 11 | | Amounts received by the System pursuant to Section 25 of | 12 | | the Budget Stabilization Act or Section 8.12 of the State | 13 | | Finance Act in any fiscal year do not reduce and do not | 14 | | constitute payment of any portion of the minimum State | 15 | | contribution required under this Article in that fiscal year. | 16 | | Such amounts shall not reduce, and shall not be included in the | 17 | | calculation of, the required State contributions under this | 18 | | Article in any future year until the System has reached a | 19 | | funding ratio of at least 90%. A reference in this Article to | 20 | | the "required State contribution" or any substantially similar | 21 | | term does not include or apply to any amounts payable to the | 22 | | System under Section 25 of the Budget Stabilization Act. | 23 | | Notwithstanding any other provision of this Section, the | 24 | | required State
contribution for State fiscal year 2005 and for | 25 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 26 | | under this Section and
certified under subsection (a-1), shall |
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| 1 | | not exceed an amount equal to (i) the
amount of the required | 2 | | State contribution that would have been calculated under
this | 3 | | Section for that fiscal year if the System had not received any | 4 | | payments
under subsection (d) of Section 7.2 of the General | 5 | | Obligation Bond Act, minus
(ii) the portion of the State's | 6 | | total debt service payments for that fiscal
year on the bonds | 7 | | issued in fiscal year 2003 for the purposes of that Section | 8 | | 7.2, as determined
and certified by the Comptroller, that is | 9 | | the same as the System's portion of
the total moneys | 10 | | distributed under subsection (d) of Section 7.2 of the General
| 11 | | Obligation Bond Act. In determining this maximum for State | 12 | | fiscal years 2008 through 2010, however, the amount referred to | 13 | | in item (i) shall be increased, as a percentage of the | 14 | | applicable employee payroll, in equal increments calculated | 15 | | from the sum of the required State contribution for State | 16 | | fiscal year 2007 plus the applicable portion of the State's | 17 | | total debt service payments for fiscal year 2007 on the bonds | 18 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 19 | | the General
Obligation Bond Act, so that, by State fiscal year | 20 | | 2011, the
State is contributing at the rate otherwise required | 21 | | under this Section.
| 22 | | (b-4) Beginning in fiscal year 2018, each employer under | 23 | | this Article shall pay to the System a required contribution | 24 | | determined as a percentage of projected payroll and sufficient | 25 | | to produce an annual amount equal to: | 26 | | (i) for each of fiscal years 2018, 2019, and 2020, the |
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| 1 | | defined benefit normal cost of the defined benefit plan, | 2 | | less the employee contribution, for each employee of that | 3 | | employer who has elected or who is deemed to have elected | 4 | | the benefits under Section 1-161 or who has made the | 5 | | election under subsection (b) of Section 1-161; for fiscal | 6 | | year 2021 and each fiscal year thereafter, the defined | 7 | | benefit normal cost of the defined benefit plan, less the | 8 | | employee contribution, plus 2%, for each employee of that | 9 | | employer who has elected or who is deemed to have elected | 10 | | the benefits under Section 1-161 or who has made the | 11 | | election under subsection (b) of Section 1-161; plus | 12 | | (ii) the amount required for that fiscal year to | 13 | | amortize any unfunded actuarial accrued liability | 14 | | associated with the present value of liabilities | 15 | | attributable to the employer's account under Section | 16 | | 16-158.3, determined
as a level percentage of payroll over | 17 | | a 30-year rolling amortization period. | 18 | | In determining contributions required under item (i) of | 19 | | this subsection, the System shall determine an aggregate rate | 20 | | for all employers, expressed as a percentage of projected | 21 | | payroll. | 22 | | In determining the contributions required under item (ii) | 23 | | of this subsection, the amount shall be computed by the System | 24 | | on the basis of the actuarial assumptions and tables used in | 25 | | the most recent actuarial valuation of the System that is | 26 | | available at the time of the computation. |
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| 1 | | The contributions required under this subsection (b-4) | 2 | | shall be paid by an employer concurrently with that employer's | 3 | | payroll payment period. The State, as the actual employer of an | 4 | | employee, shall make the required contributions under this | 5 | | subsection. | 6 | | (c) Payment of the required State contributions and of all | 7 | | pensions,
retirement annuities, death benefits, refunds, and | 8 | | other benefits granted
under or assumed by this System, and all | 9 | | expenses in connection with the
administration and operation | 10 | | thereof, are obligations of the State.
| 11 | | If members are paid from special trust or federal funds | 12 | | which are
administered by the employing unit, whether school | 13 | | district or other
unit, the employing unit shall pay to the | 14 | | System from such
funds the full accruing retirement costs based | 15 | | upon that
service, which, beginning July 1, 2017, shall be at a | 16 | | rate, expressed as a percentage of salary, equal to the total | 17 | | employer's normal cost, expressed as a percentage of payroll, | 18 | | as determined by the System. Employer contributions, based on
| 19 | | salary paid to members from federal funds, may be forwarded by | 20 | | the distributing
agency of the State of Illinois to the System | 21 | | prior to allocation, in an
amount determined in accordance with | 22 | | guidelines established by such
agency and the System. Any | 23 | | contribution for fiscal year 2015 collected as a result of the | 24 | | change made by Public Act 98-674 shall be considered a State | 25 | | contribution under subsection (b-3) of this Section.
| 26 | | (d) Effective July 1, 1986, any employer of a teacher as |
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| 1 | | defined in
paragraph (8) of Section 16-106 shall pay the | 2 | | employer's normal cost
of benefits based upon the teacher's | 3 | | service, in addition to
employee contributions, as determined | 4 | | by the System. Such employer
contributions shall be forwarded | 5 | | monthly in accordance with guidelines
established by the | 6 | | System.
| 7 | | However, with respect to benefits granted under Section | 8 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 9 | | of Section 16-106, the
employer's contribution shall be 12% | 10 | | (rather than 20%) of the member's
highest annual salary rate | 11 | | for each year of creditable service granted, and
the employer | 12 | | shall also pay the required employee contribution on behalf of
| 13 | | the teacher. For the purposes of Sections 16-133.4 and | 14 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 15 | | 16-106 who is serving in that capacity
while on leave of | 16 | | absence from another employer under this Article shall not
be | 17 | | considered an employee of the employer from which the teacher | 18 | | is on leave.
| 19 | | (e) Beginning July 1, 1998, every employer of a teacher
| 20 | | shall pay to the System an employer contribution computed as | 21 | | follows:
| 22 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 23 | | employer
contribution shall be equal to 0.3% of each | 24 | | teacher's salary.
| 25 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 26 | | contribution shall be equal to 0.58% of each teacher's |
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| 1 | | salary.
| 2 | | The school district or other employing unit may pay these | 3 | | employer
contributions out of any source of funding available | 4 | | for that purpose and
shall forward the contributions to the | 5 | | System on the schedule established
for the payment of member | 6 | | contributions.
| 7 | | These employer contributions are intended to offset a | 8 | | portion of the cost
to the System of the increases in | 9 | | retirement benefits resulting from Public Act 90-582.
| 10 | | Each employer of teachers is entitled to a credit against | 11 | | the contributions
required under this subsection (e) with | 12 | | respect to salaries paid to teachers
for the period January 1, | 13 | | 2002 through June 30, 2003, equal to the amount paid
by that | 14 | | employer under subsection (a-5) of Section 6.6 of the State | 15 | | Employees
Group Insurance Act of 1971 with respect to salaries | 16 | | paid to teachers for that
period.
| 17 | | The additional 1% employee contribution required under | 18 | | Section 16-152 by Public Act 90-582
is the responsibility of | 19 | | the teacher and not the
teacher's employer, unless the employer | 20 | | agrees, through collective bargaining
or otherwise, to make the | 21 | | contribution on behalf of the teacher.
| 22 | | If an employer is required by a contract in effect on May | 23 | | 1, 1998 between the
employer and an employee organization to | 24 | | pay, on behalf of all its full-time
employees
covered by this | 25 | | Article, all mandatory employee contributions required under
| 26 | | this Article, then the employer shall be excused from paying |
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| 1 | | the employer
contribution required under this subsection (e) | 2 | | for the balance of the term
of that contract. The employer and | 3 | | the employee organization shall jointly
certify to the System | 4 | | the existence of the contractual requirement, in such
form as | 5 | | the System may prescribe. This exclusion shall cease upon the
| 6 | | termination, extension, or renewal of the contract at any time | 7 | | after May 1,
1998.
| 8 | | (f) For school years beginning on or after June 1, 2005 and | 9 | | before July 1, 2018 and for salary paid to a teacher under a | 10 | | contract or collective bargaining agreement entered into, | 11 | | amended, or renewed before June 4, 2018 ( the effective date of | 12 | | Public Act 100-587) this amendatory Act of the 100th General | 13 | | Assembly , if the amount of a teacher's salary for any school | 14 | | year used to determine final average salary exceeds the | 15 | | member's annual full-time salary rate with the same employer | 16 | | for the previous school year by more than 6%, the teacher's | 17 | | employer shall pay to the System, in addition to all other | 18 | | payments required under this Section and in accordance with | 19 | | guidelines established by the System, the present value of the | 20 | | increase in benefits resulting from the portion of the increase | 21 | | in salary that is in excess of 6%. This present value shall be | 22 | | computed by the System on the basis of the actuarial | 23 | | assumptions and tables used in the most recent actuarial | 24 | | valuation of the System that is available at the time of the | 25 | | computation. If a teacher's salary for the 2005-2006 school | 26 | | year is used to determine final average salary under this |
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| 1 | | subsection (f), then the changes made to this subsection (f) by | 2 | | Public Act 94-1057 shall apply in calculating whether the | 3 | | increase in his or her salary is in excess of 6%. For the | 4 | | purposes of this Section, change in employment under Section | 5 | | 10-21.12 of the School Code on or after June 1, 2005 shall | 6 | | constitute a change in employer. The System may require the | 7 | | employer to provide any pertinent information or | 8 | | documentation.
The changes made to this subsection (f) by | 9 | | Public Act 94-1111 apply without regard to whether the teacher | 10 | | was in service on or after its effective date.
| 11 | | Whenever it determines that a payment is or may be required | 12 | | under this subsection, the System shall calculate the amount of | 13 | | the payment and bill the employer for that amount. The bill | 14 | | shall specify the calculations used to determine the amount | 15 | | due. If the employer disputes the amount of the bill, it may, | 16 | | within 30 days after receipt of the bill, apply to the System | 17 | | in writing for a recalculation. The application must specify in | 18 | | detail the grounds of the dispute and, if the employer asserts | 19 | | that the calculation is subject to subsection (g) or (h) of | 20 | | this Section or that subsection (f-1) of this Section applies, | 21 | | must include an affidavit setting forth and attesting to all | 22 | | facts within the employer's knowledge that are pertinent to the | 23 | | applicability of that subsection. Upon receiving a timely | 24 | | application for recalculation, the System shall review the | 25 | | application and, if appropriate, recalculate the amount due.
| 26 | | The employer contributions required under this subsection |
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| 1 | | (f) may be paid in the form of a lump sum within 90 days after | 2 | | receipt of the bill. If the employer contributions are not paid | 3 | | within 90 days after receipt of the bill, then interest will be | 4 | | charged at a rate equal to the System's annual actuarially | 5 | | assumed rate of return on investment compounded annually from | 6 | | the 91st day after receipt of the bill. Payments must be | 7 | | concluded within 3 years after the employer's receipt of the | 8 | | bill.
| 9 | | (f-1) For school years beginning on or after July 1, 2018 | 10 | | and for salary paid to a teacher under a contract or collective | 11 | | bargaining agreement entered into, amended, or renewed on or | 12 | | after June 4, 2018 ( the effective date of Public Act 100-587) | 13 | | this amendatory Act of the 100th General Assembly , if the | 14 | | amount of a teacher's salary for any school year used to | 15 | | determine final average salary exceeds the member's annual | 16 | | full-time salary rate with the same employer for the previous | 17 | | school year by more than 3%, then the teacher's employer shall | 18 | | pay to the System, in addition to all other payments required | 19 | | under this Section and in accordance with guidelines | 20 | | established by the System, the present value of the increase in | 21 | | benefits resulting from the portion of the increase in salary | 22 | | that is in excess of 3%. This present value shall be computed | 23 | | by the System on the basis of the actuarial assumptions and | 24 | | tables used in the most recent actuarial valuation of the | 25 | | System that is available at the time of the computation. The | 26 | | System may require the employer to provide any pertinent |
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| 1 | | information or documentation. | 2 | | Whenever it determines that a payment is or may be required | 3 | | under this subsection (f-1), the System shall calculate the | 4 | | amount of the payment and bill the employer for that amount. | 5 | | The bill shall specify the calculations used to determine the | 6 | | amount due. If the employer disputes the amount of the bill, it | 7 | | shall, within 30 days after receipt of the bill, apply to the | 8 | | System in writing for a recalculation. The application must | 9 | | specify in detail the grounds of the dispute and, if the | 10 | | employer asserts that subsection (f) or (g-1) of this Section | 11 | | applies, must include an affidavit setting forth and attesting | 12 | | to all facts within the employer's knowledge that are pertinent | 13 | | to the applicability of that subsection (f) . Upon receiving a | 14 | | timely application for recalculation, the System shall review | 15 | | the application and, if appropriate, recalculate the amount | 16 | | due. | 17 | | The employer contributions required under this subsection | 18 | | (f-1) may be paid in the form of a lump sum within 90 days after | 19 | | receipt of the bill. If the employer contributions are not paid | 20 | | within 90 days after receipt of the bill, then interest shall | 21 | | be charged at a rate equal to the System's annual actuarially | 22 | | assumed rate of return on investment compounded annually from | 23 | | the 91st day after receipt of the bill. Payments must be | 24 | | concluded within 3 years after the employer's receipt of the | 25 | | bill. | 26 | | (g) This subsection (g) applies only to payments made or |
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| 1 | | salary increases given on or after June 1, 2005 but before July | 2 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 3 | | require the System to refund any payments received before
July | 4 | | 31, 2006 (the effective date of Public Act 94-1057). | 5 | | When assessing payment for any amount due under subsection | 6 | | (f), the System shall exclude salary increases paid to teachers | 7 | | under contracts or collective bargaining agreements entered | 8 | | into, amended, or renewed before June 1, 2005.
| 9 | | When assessing payment for any amount due under subsection | 10 | | (f), the System shall exclude salary increases paid to a | 11 | | teacher at a time when the teacher is 10 or more years from | 12 | | retirement eligibility under Section 16-132 or 16-133.2.
| 13 | | When assessing payment for any amount due under subsection | 14 | | (f), the System shall exclude salary increases resulting from | 15 | | overload work, including summer school, when the school | 16 | | district has certified to the System, and the System has | 17 | | approved the certification, that (i) the overload work is for | 18 | | the sole purpose of classroom instruction in excess of the | 19 | | standard number of classes for a full-time teacher in a school | 20 | | district during a school year and (ii) the salary increases are | 21 | | equal to or less than the rate of pay for classroom instruction | 22 | | computed on the teacher's current salary and work schedule.
| 23 | | When assessing payment for any amount due under subsection | 24 | | (f), the System shall exclude a salary increase resulting from | 25 | | a promotion (i) for which the employee is required to hold a | 26 | | certificate or supervisory endorsement issued by the State |
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| 1 | | Teacher Certification Board that is a different certification | 2 | | or supervisory endorsement than is required for the teacher's | 3 | | previous position and (ii) to a position that has existed and | 4 | | been filled by a member for no less than one complete academic | 5 | | year and the salary increase from the promotion is an increase | 6 | | that results in an amount no greater than the lesser of the | 7 | | average salary paid for other similar positions in the district | 8 | | requiring the same certification or the amount stipulated in | 9 | | the collective bargaining agreement for a similar position | 10 | | requiring the same certification.
| 11 | | When assessing payment for any amount due under subsection | 12 | | (f), the System shall exclude any payment to the teacher from | 13 | | the State of Illinois or the State Board of Education over | 14 | | which the employer does not have discretion, notwithstanding | 15 | | that the payment is included in the computation of final | 16 | | average salary.
| 17 | | (g-1) When assessing payment for any amount due under | 18 | | subsection (f-1), the System shall exclude salary increases | 19 | | resulting from overload work, including summer school, when the | 20 | | school district has certified to the System, and the System has | 21 | | approved the certification, that (i) the overload work is for | 22 | | the sole purpose of classroom instruction in excess of the | 23 | | standard number of classes for a full-time teacher in a school | 24 | | district during a school year and (ii) the salary increases are | 25 | | equal to or less than the rate of pay for classroom instruction | 26 | | computed on the teacher's current salary and work schedule. |
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| 1 | | When assessing payment for any amount due under subsection | 2 | | (f-1), the System shall exclude salary increases resulting from | 3 | | duties as a coach or advisor for an extracurricular activity. | 4 | | When assessing payment for any amount due under subsection | 5 | | (f-1), the System shall exclude salary increases resulting from | 6 | | the teacher earning additional higher education credits or | 7 | | degrees. | 8 | | When assessing payment for any amount due under subsection | 9 | | (f-1), the System shall exclude salary increases resulting from | 10 | | substitute teaching. | 11 | | When assessing payment for any amount due under subsection | 12 | | (f-1), the System shall exclude a salary increase resulting | 13 | | from a promotion (i) for which the employee is required to hold | 14 | | a license or supervisory endorsement issued by the State | 15 | | Educator Preparation and Licensure Board that is a different | 16 | | licensure or supervisory endorsement than is required for the | 17 | | teacher's previous position and (ii) to a position that has | 18 | | existed and been filled by a member for no less than one | 19 | | complete academic year and the salary increase from the | 20 | | promotion is an increase that results in an amount no greater | 21 | | than the lesser of the average salary paid for other similar | 22 | | positions in the district requiring the same licensure or the | 23 | | amount stipulated in the collective bargaining agreement for a | 24 | | similar position requiring the same licensure. | 25 | | (h) When assessing payment for any amount due under | 26 | | subsection (f), the System shall exclude any salary increase |
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| 1 | | described in subsection (g) of this Section given on or after | 2 | | July 1, 2011 but before July 1, 2014 under a contract or | 3 | | collective bargaining agreement entered into, amended, or | 4 | | renewed on or after June 1, 2005 but before July 1, 2011. | 5 | | Notwithstanding any other provision of this Section, any | 6 | | payments made or salary increases given after June 30, 2014 | 7 | | shall be used in assessing payment for any amount due under | 8 | | subsection (f) of this Section.
| 9 | | (i) The System shall prepare a report and file copies of | 10 | | the report with the Governor and the General Assembly by | 11 | | January 1, 2007 that contains all of the following information: | 12 | | (1) The number of recalculations required by the | 13 | | changes made to this Section by Public Act 94-1057 for each | 14 | | employer. | 15 | | (2) The dollar amount by which each employer's | 16 | | contribution to the System was changed due to | 17 | | recalculations required by Public Act 94-1057. | 18 | | (3) The total amount the System received from each | 19 | | employer as a result of the changes made to this Section by | 20 | | Public Act 94-4. | 21 | | (4) The increase in the required State contribution | 22 | | resulting from the changes made to this Section by Public | 23 | | Act 94-1057.
| 24 | | (i-5) For school years beginning on or after July 1, 2017, | 25 | | if the amount of a participant's salary for any school year | 26 | | exceeds the amount of the salary set for the Governor, the |
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| 1 | | participant's employer shall pay to the System, in addition to | 2 | | all other payments required under this Section and in | 3 | | accordance with guidelines established by the System, an amount | 4 | | determined by the System to be equal to the employer normal | 5 | | cost, as established by the System and expressed as a total | 6 | | percentage of payroll, multiplied by the amount of salary in | 7 | | excess of the amount of the salary set for the Governor. This | 8 | | amount shall be computed by the System on the basis of the | 9 | | actuarial assumptions and tables used in the most recent | 10 | | actuarial valuation of the System that is available at the time | 11 | | of the computation. The System may require the employer to | 12 | | provide any pertinent information or documentation. | 13 | | Whenever it determines that a payment is or may be required | 14 | | under this subsection, the System shall calculate the amount of | 15 | | the payment and bill the employer for that amount. The bill | 16 | | shall specify the calculations used to determine the amount | 17 | | due. If the employer disputes the amount of the bill, it may, | 18 | | within 30 days after receipt of the bill, apply to the System | 19 | | in writing for a recalculation. The application must specify in | 20 | | detail the grounds of the dispute. Upon receiving a timely | 21 | | application for recalculation, the System shall review the | 22 | | application and, if appropriate, recalculate the amount due. | 23 | | The employer contributions required under this subsection | 24 | | may be paid in the form of a lump sum within 90 days after | 25 | | receipt of the bill. If the employer contributions are not paid | 26 | | within 90 days after receipt of the bill, then interest will be |
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| 1 | | charged at a rate equal to the System's annual actuarially | 2 | | assumed rate of return on investment compounded annually from | 3 | | the 91st day after receipt of the bill. Payments must be | 4 | | concluded within 3 years after the employer's receipt of the | 5 | | bill. | 6 | | (j) For purposes of determining the required State | 7 | | contribution to the System, the value of the System's assets | 8 | | shall be equal to the actuarial value of the System's assets, | 9 | | which shall be calculated as follows: | 10 | | As of June 30, 2008, the actuarial value of the System's | 11 | | assets shall be equal to the market value of the assets as of | 12 | | that date. In determining the actuarial value of the System's | 13 | | assets for fiscal years after June 30, 2008, any actuarial | 14 | | gains or losses from investment return incurred in a fiscal | 15 | | year shall be recognized in equal annual amounts over the | 16 | | 5-year period following that fiscal year. | 17 | | (k) For purposes of determining the required State | 18 | | contribution to the system for a particular year, the actuarial | 19 | | value of assets shall be assumed to earn a rate of return equal | 20 | | to the system's actuarially assumed rate of return. | 21 | | (Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; | 22 | | 100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff. | 23 | | 8-14-18; revised 10-4-18.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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