Full Text of HB5088 095th General Assembly
HB5088enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 3. The Department of Professional Regulation Law of | 5 |
| the
Civil Administrative Code of Illinois is amended by | 6 |
| changing Section 2105-300 as follows:
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| (20 ILCS 2105/2105-300) (was 20 ILCS 2105/61e)
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| Sec. 2105-300. Professions Indirect Cost Fund; | 9 |
| allocations;
analyses. | 10 |
| (a) Appropriations for the direct and allocable indirect | 11 |
| costs of licensing
and regulating each regulated profession, | 12 |
| trade, occupation, or industry are intended to
be payable from | 13 |
| the fees and fines that are assessed and collected from that
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| profession, trade, occupation, or industry, to the extent that | 15 |
| those fees and fines are
sufficient. In any fiscal year in | 16 |
| which the fees and fines generated by a
specific profession, | 17 |
| trade, occupation, or industry are insufficient to finance the
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| necessary direct and allocable indirect costs of licensing and | 19 |
| regulating that
profession, trade,
occupation, or industry, | 20 |
| the remainder of those costs shall be
financed from | 21 |
| appropriations payable from revenue sources other than fees and
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| fines. The direct and allocable indirect costs of the | 23 |
| Department identified in
its cost allocation plans that are not |
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| attributable to the licensing and
regulation of a specific | 2 |
| profession, trade, or occupation, or industry or group of
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| professions, trades, occupations, or industries shall be | 4 |
| financed from appropriations from
revenue sources other than | 5 |
| fees and fines.
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| (b) The Professions Indirect Cost Fund is hereby created as | 7 |
| a special fund
in the State Treasury. Except as provided in | 8 |
| subsection (e), the The Fund may receive transfers of moneys | 9 |
| authorized by
the Department from the cash balances in special
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| funds that receive revenues from the fees and fines associated | 11 |
| with the
licensing of regulated professions, trades, | 12 |
| occupations, and industries by the Department.
Moneys in the | 13 |
| Fund shall be invested and earnings on the investments shall
be | 14 |
| retained in the Fund.
Subject to appropriation, the Department | 15 |
| shall use moneys in the Fund to pay
the ordinary and necessary | 16 |
| allocable indirect expenses associated with each of
the | 17 |
| regulated professions, trades,
occupations, and industries.
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| (c) Before the beginning of each fiscal year, the | 19 |
| Department shall prepare
a cost allocation analysis to be used | 20 |
| in establishing the necessary
appropriation levels for each | 21 |
| cost purpose and revenue source. At the
conclusion of each | 22 |
| fiscal year, the Department shall prepare a cost allocation
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| analysis reflecting the extent of the variation between how the | 24 |
| costs were
actually financed in that year and the planned cost | 25 |
| allocation for that year.
Variations between the planned and | 26 |
| actual cost allocations for the prior fiscal
year shall be |
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| adjusted into the Department's planned cost allocation for the
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| next fiscal year.
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| Each cost allocation analysis shall separately identify | 4 |
| the direct and
allocable indirect costs of each regulated | 5 |
| profession, trade, occupation, or industry and
the costs of the | 6 |
| Department's general public health and safety purposes.
The | 7 |
| analyses shall determine whether the direct and allocable | 8 |
| indirect
costs of each regulated profession, trade,
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| occupation, or industry and the costs of the
Department's | 10 |
| general public health and safety purposes are sufficiently
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| financed from their respective funding sources. The Department | 12 |
| shall prepare
the cost allocation analyses in consultation with | 13 |
| the respective regulated
professions, trades, occupations, and | 14 |
| industries and shall make copies of the analyses
available to | 15 |
| them in a timely fashion.
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| (d) Except as provided in subsection (e), the The | 17 |
| Department may direct the State Comptroller and Treasurer to
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| transfer moneys from the special funds that receive fees and | 19 |
| fines associated
with regulated professions, trades, | 20 |
| occupations, and industries into the Professions
Indirect Cost | 21 |
| Fund in accordance with the Department's cost allocation | 22 |
| analysis
plan for the applicable fiscal year. For a given | 23 |
| fiscal year, the Department
shall not direct the transfer of | 24 |
| moneys under this subsection from a special
fund associated | 25 |
| with a specific regulated profession, trade, occupation, or | 26 |
| industry (or
group of professions, trades, occupations, or |
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| industries) in an amount exceeding the
allocable indirect costs | 2 |
| associated with that profession, trade, occupation, or | 3 |
| industry
(or group of professions, trades, occupations, or | 4 |
| industries) as provided in the cost
allocation analysis for | 5 |
| that fiscal year and adjusted for allocation variations
from | 6 |
| the prior fiscal year. No direct costs identified in the cost | 7 |
| allocation
plan shall be used as a basis for transfers into the | 8 |
| Professions Indirect Cost
Fund or for expenditures from the | 9 |
| Fund.
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| (e) No transfer may be made to the Professions Indirect | 11 |
| Cost Fund under this Section from the Public Pension Regulation | 12 |
| Fund. | 13 |
| (Source: P.A. 94-91, eff. 7-1-05.)
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| Section 4. The Pension Impact Note Act is amended by | 15 |
| changing Section 3 as follows:
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| (25 ILCS 55/3) (from Ch. 63, par. 42.43)
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| Sec. 3. Content of pension impact note. | 18 |
| (a) The pension impact note shall be factual in nature, as | 19 |
| brief and
concise as may be, and shall provide a reliable | 20 |
| estimate of the impact of the bill on
any public pension | 21 |
| systems to be effected by it, in dollars where appropriate,
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| and, in addition,
it shall include both the immediate effect | 23 |
| and, if determinable or reasonably
foreseeable,
the long range | 24 |
| effect of the measure. If, after careful investigation, it
is |
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| determined that no
dollar estimate is possible, the note shall | 2 |
| contain a statement to that effect, setting
forth the reasons | 3 |
| why no dollar estimate can be given. A brief summary or work | 4 |
| sheet
of computations used in arriving at pension impact note | 5 |
| figures shall be included.
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| (b) The pension impact note for any legislation or | 7 |
| amendment that the Commission on Government Forecasting and | 8 |
| Accountability determines would result in an increase in | 9 |
| benefits or increased costs to a pension fund established under | 10 |
| Article 3 or 4 of the Illinois Pension Code may demonstrate the | 11 |
| fiscal impact of the legislation being considered on selected | 12 |
| individual municipalities with such pension funds. | 13 |
| (Source: P.A. 79-1397.)
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| Section 5. The State Finance Act is amended by changing | 15 |
| Sections 8.12 and 8f as follows:
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| (30 ILCS 105/8.12)
(from Ch. 127, par. 144.12)
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| Sec. 8.12. State Pensions Fund.
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| (a) The moneys in the State Pensions Fund shall be used | 19 |
| exclusively
for the administration of the Uniform Disposition | 20 |
| of Unclaimed Property Act and
for the funding of the unfunded | 21 |
| liabilities of the designated retirement systems. Payments to | 22 |
| the designated retirement systems under this Section shall be | 23 |
| in addition to, and not in lieu of, any State contributions | 24 |
| required under the Illinois Pension Code payment of or |
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| repayment to the General Revenue Fund a portion of
the required | 2 |
| State contributions to the
designated retirement systems .
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| "Designated retirement systems" means:
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| (1) the State Employees' Retirement System of | 5 |
| Illinois;
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| (2) the Teachers' Retirement System of the State of | 7 |
| Illinois;
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| (3) the State Universities Retirement System;
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| (4) the Judges Retirement System of Illinois; and
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| (5) the General Assembly Retirement System.
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| (b) Each year the General Assembly may make appropriations | 12 |
| from
the State Pensions Fund for the administration of the | 13 |
| Uniform Disposition of
Unclaimed Property Act.
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| Each month, the Commissioner of the Office of Banks and | 15 |
| Real Estate shall
certify to the State Treasurer the actual | 16 |
| expenditures that the Office of
Banks and Real Estate incurred | 17 |
| conducting unclaimed property examinations under
the Uniform | 18 |
| Disposition of Unclaimed Property Act during the immediately
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| preceding month. Within a reasonable
time following the | 20 |
| acceptance of such certification by the State Treasurer, the
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| State Treasurer shall pay from its appropriation from the State | 22 |
| Pensions Fund
to the Bank and Trust Company Fund and the | 23 |
| Savings and Residential Finance
Regulatory Fund an amount equal | 24 |
| to the expenditures incurred by each Fund for
that month.
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| Each month, the Director of Financial Institutions shall
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| certify to the State Treasurer the actual expenditures that the |
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| Department of
Financial Institutions incurred conducting | 2 |
| unclaimed property examinations
under the Uniform Disposition | 3 |
| of Unclaimed Property Act during the immediately
preceding | 4 |
| month. Within a reasonable time following the acceptance of | 5 |
| such
certification by the State Treasurer, the State Treasurer | 6 |
| shall pay from its
appropriation from the State Pensions Fund
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| to the Financial Institutions Fund and the Credit Union Fund
an | 8 |
| amount equal to the expenditures incurred by each Fund for
that | 9 |
| month.
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| (c) As soon as possible after the effective date of this | 11 |
| amendatory Act of the 93rd General Assembly, the General | 12 |
| Assembly shall appropriate from the State Pensions Fund (1) to | 13 |
| the State Universities Retirement System the amount certified | 14 |
| under Section 15-165 during the prior year, (2) to the Judges | 15 |
| Retirement System of Illinois the amount certified under | 16 |
| Section 18-140 during the prior year, and (3) to the General | 17 |
| Assembly Retirement System the amount certified under Section | 18 |
| 2-134 during the prior year as part of the required
State | 19 |
| contributions to each of those designated retirement systems; | 20 |
| except that amounts appropriated under this subsection (c) in | 21 |
| State fiscal year 2005 shall not reduce the amount in the State | 22 |
| Pensions Fund below $5,000,000. If the amount in the State | 23 |
| Pensions Fund does not exceed the sum of the amounts certified | 24 |
| in Sections 15-165, 18-140, and 2-134 by at least $5,000,000, | 25 |
| the amount paid to each designated retirement system under this | 26 |
| subsection shall be reduced in proportion to the amount |
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| certified by each of those designated retirement systems.
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| (c-5) For fiscal years year 2006 and thereafter , 2007, | 3 |
| 2008, 2009, and 2010 the General Assembly shall appropriate | 4 |
| from the State Pensions Fund to the State Universities | 5 |
| Retirement System the amount estimated to be available during | 6 |
| the fiscal year in the State Pensions Fund; provided, however, | 7 |
| that the amounts appropriated under this subsection (c-5) shall | 8 |
| not reduce the amount in the State Pensions Fund below | 9 |
| $5,000,000.
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| (c-6) For fiscal year 2011 and each fiscal year thereafter, | 11 |
| as soon as may be practical after any money is deposited into | 12 |
| the State Pensions Fund from the Unclaimed Property Trust Fund, | 13 |
| the State Treasurer shall apportion the deposited amount among | 14 |
| the designated retirement systems as defined in subsection (a) | 15 |
| to reduce their actuarial reserve deficiencies. The State | 16 |
| Comptroller and State Treasurer shall pay the apportioned | 17 |
| amounts to the designated retirement systems to fund the | 18 |
| unfunded liabilities of the designated retirement systems. The | 19 |
| amount apportioned to each designated retirement system shall | 20 |
| constitute a portion of the amount estimated to be available | 21 |
| for appropriation from the State Pensions Fund that is the same | 22 |
| as that retirement system's portion of the total actual reserve | 23 |
| deficiency of the systems, as determined annually by the | 24 |
| Governor's Office of Management and Budget at the request of | 25 |
| the State Treasurer. The amounts apportioned under this | 26 |
| subsection shall not reduce the amount in the State Pensions |
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| Fund below $5,000,000. | 2 |
| (d) The
Governor's Office of Management and Budget shall | 3 |
| determine the individual and total
reserve deficiencies of the | 4 |
| designated retirement systems. For this purpose,
the
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| Governor's Office of Management and Budget shall utilize the | 6 |
| latest available audit and actuarial
reports of each of the | 7 |
| retirement systems and the relevant reports and
statistics of | 8 |
| the Public Employee Pension Fund Division of the Department of
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| Insurance.
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| (d-1) As soon as practicable after the effective date of | 11 |
| this
amendatory Act of the 93rd General Assembly, the | 12 |
| Comptroller shall
direct and the Treasurer shall transfer from | 13 |
| the State Pensions Fund to
the General Revenue Fund, as funds | 14 |
| become available, a sum equal to the
amounts that would have | 15 |
| been paid
from the State Pensions Fund to the Teachers' | 16 |
| Retirement System of the State
of Illinois,
the State | 17 |
| Universities Retirement System, the Judges Retirement
System | 18 |
| of Illinois, the
General Assembly Retirement System, and the | 19 |
| State Employees'
Retirement System
of Illinois
after the | 20 |
| effective date of this
amendatory Act during the remainder of | 21 |
| fiscal year 2004 to the
designated retirement systems from the | 22 |
| appropriations provided for in
this Section if the transfers | 23 |
| provided in Section 6z-61 had not
occurred. The transfers | 24 |
| described in this subsection (d-1) are to
partially repay the | 25 |
| General Revenue Fund for the costs associated with
the bonds | 26 |
| used to fund the moneys transferred to the designated
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| retirement systems under Section 6z-61.
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| (e) The changes to this Section made by this amendatory Act | 3 |
| of 1994 shall
first apply to distributions from the Fund for | 4 |
| State fiscal year 1996.
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| (Source: P.A. 93-665, eff. 3-5-04; 93-839, eff. 7-30-04; 94-91, | 6 |
| eff. 7-1-05.)
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| (30 ILCS 105/8f)
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| Sec. 8f. Public Pension Regulation Fund. The Public Pension | 9 |
| Regulation
Fund is created in the State Treasury. Except as | 10 |
| otherwise provided in the
Illinois Pension Code, all money | 11 |
| received by the Department of Financial and Professional | 12 |
| Regulation, as successor to the Illinois Department of
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| Insurance, under the Illinois Pension Code shall be paid into | 14 |
| the Fund. Moneys in the Fund may be transferred to the | 15 |
| Professions Indirect Cost Fund, as authorized under Section | 16 |
| 2105-300 of the Department of Professional Regulation Law of | 17 |
| the Civil Administrative Code of Illinois. The
State Treasurer | 18 |
| promptly shall invest the money in the Fund, and all earnings
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| that accrue on the money in the Fund shall be credited to the | 20 |
| Fund. No money
may be transferred from this Fund to any other | 21 |
| fund. The General Assembly may
make appropriations from this | 22 |
| Fund for the ordinary and contingent expenses of
the Public | 23 |
| Pension Division of the Illinois Department of Insurance.
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| (Source: P.A. 94-91, eff. 7-1-05.)
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| Section 10. The Illinois Pension Code is amended by | 2 |
| changing Sections 1-110, 1-113.5, 1A-104, 2-124, 3-143, 4-134, | 3 |
| 14-131, 15-155, 16-158, and 18-131 and by adding Sections | 4 |
| 1-125, 3-141.1, 3-144.5, 4-138.5, and 22-1004 as follows:
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| (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
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| Sec. 1-110. Prohibited Transactions.
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| (a) A fiduciary with respect to a retirement system or | 8 |
| pension fund shall
not cause the retirement system or pension | 9 |
| fund to engage in a transaction if
he or she knows or should | 10 |
| know that such transaction constitutes a direct or
indirect:
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| (1) Sale or exchange, or leasing of any property from | 12 |
| the retirement
system
or pension fund to a party in | 13 |
| interest for less than adequate consideration,
or from a | 14 |
| party in interest to a retirement system or pension fund | 15 |
| for more
than adequate consideration.
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| (2) Lending of money or other extension of credit from | 17 |
| the retirement
system or pension fund to a party in | 18 |
| interest without the receipt of adequate
security and a | 19 |
| reasonable rate of interest, or from a party in interest to
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| a retirement system or pension fund with the provision of | 21 |
| excessive security
or an unreasonably high rate of | 22 |
| interest.
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| (3) Furnishing of goods, services or facilities from | 24 |
| the retirement
system or pension fund to a party in | 25 |
| interest for less than adequate
consideration, or from a |
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| party in interest to a retirement system or
pension fund | 2 |
| for more than adequate consideration.
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| (4) Transfer to, or use by or for the benefit of, a | 4 |
| party in interest
of any assets of a retirement system or | 5 |
| pension fund for less than adequate
consideration.
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| (b) A fiduciary with respect to a retirement system or | 7 |
| pension fund
established under this Code shall not:
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| (1) Deal with the assets of the retirement system or | 9 |
| pension fund in his
own interest or for his own account;
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| (2) In his individual or any other capacity act in any | 11 |
| transaction
involving the retirement system or pension | 12 |
| fund on behalf of a party whose
interests are adverse to | 13 |
| the interests of the retirement system or pension fund
or | 14 |
| the interests of its participants or beneficiaries; or
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| (3) Receive any consideration for his own personal | 16 |
| account from any party
dealing with the retirement system | 17 |
| or pension fund in connection with a
transaction involving | 18 |
| the assets of the retirement system or pension
fund.
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| (c) Nothing in this Section shall be construed to prohibit | 20 |
| any trustee from:
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| (1) Receiving any benefit to which he may be entitled | 22 |
| as a participant
or beneficiary in the retirement system or | 23 |
| pension fund.
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| (2) Receiving any reimbursement of expenses properly | 25 |
| and actually incurred
in the performance of his duties with | 26 |
| the retirement system or pension fund.
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| (3) Serving as a trustee in addition to being an | 2 |
| officer, employee, agent
or other representative of a party | 3 |
| in interest.
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| (d) A fiduciary of a pension fund established under Article | 5 |
| 3 or 4 shall
not knowingly cause or advise the pension fund to | 6 |
| engage in an investment transaction when the fiduciary (i) has | 7 |
| any direct interest in
the income, gains, or profits of the | 8 |
| investment advisor through which the investment transaction is | 9 |
| made or (ii) has a business relationship with that investment | 10 |
| advisor that would result in a pecuniary benefit to the | 11 |
| fiduciary as a result of the investment transaction. | 12 |
| Violation of this subsection (d) is a Class 4 felony.
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| (Source: P.A. 88-535.)
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| (40 ILCS 5/1-113.5)
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| Sec. 1-113.5. Investment advisers and investment services.
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| (a) The board of trustees of a pension fund may appoint | 17 |
| investment advisers
as defined in Section 1-101.4. The board of | 18 |
| any pension fund investing in
common or preferred stock under | 19 |
| Section 1-113.4 shall appoint an investment
adviser before | 20 |
| making such investments.
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| The investment adviser shall be a fiduciary, as defined in | 22 |
| Section 1-101.2,
with respect to the pension fund and shall be | 23 |
| one of the following:
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| (1) an investment adviser registered under the federal | 25 |
| Investment Advisers
Act of 1940 and the Illinois Securities |
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| Law of 1953;
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| (2) a bank or trust company authorized to conduct a | 3 |
| trust business in
Illinois;
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| (3) a life insurance company authorized to transact | 5 |
| business in Illinois;
or
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| (4) an investment company as defined and registered | 7 |
| under the federal
Investment Company Act of 1940 and | 8 |
| registered under the Illinois Securities Law
of 1953.
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| (a-5) Notwithstanding any other provision of law, a person | 10 |
| or entity that provides consulting services (referred to as a | 11 |
| "consultant" in this Section) to a pension fund with respect to | 12 |
| the selection of fiduciaries may not be awarded a contract to | 13 |
| provide those consulting services that is more than 5 years in | 14 |
| duration. No contract to provide such consulting services may | 15 |
| be renewed or extended. At the end of the term of a contract, | 16 |
| however, the contractor is eligible to compete for a new | 17 |
| contract. No person shall attempt to avoid or contravene the | 18 |
| restrictions of this subsection by any means. All offers from | 19 |
| responsive offerors shall be accompanied by disclosure of the | 20 |
| names and addresses of the following: | 21 |
| (1) The offeror. | 22 |
| (2) Any entity that is a parent of, or owns a | 23 |
| controlling interest in, the offeror. | 24 |
| (3) Any entity that is a subsidiary of, or in which a | 25 |
| controlling interest is owned by, the offeror. | 26 |
| Beginning on July 1, 2008, a person, other than a trustee |
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| or an employee of a pension fund or retirement system, may not | 2 |
| act as a consultant under this Section unless that person is at | 3 |
| least one of the following: (i) registered as an investment | 4 |
| adviser under the federal Investment Advisers Act of 1940 (15 | 5 |
| U.S.C. 80b-1, et seq.); (ii) registered as an investment | 6 |
| adviser under the Illinois Securities Law of 1953; (iii) a | 7 |
| bank, as defined in the Investment Advisers Act of 1940; or | 8 |
| (iv) an insurance company authorized to transact business in | 9 |
| this State. | 10 |
| (b) All investment advice and services provided by an | 11 |
| investment adviser
or a consultant appointed under this Section | 12 |
| shall be rendered pursuant to a written contract
between the | 13 |
| investment adviser and the board, and in accordance with the
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| board's investment policy.
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| The contract shall include all of the following:
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| (1) acknowledgement in writing by the investment | 17 |
| adviser that he or she
is a fiduciary with respect to the | 18 |
| pension fund;
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| (2) the board's investment policy;
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| (3) full disclosure of direct and indirect fees, | 21 |
| commissions, penalties,
and any other compensation that | 22 |
| may be received by the investment adviser,
including | 23 |
| reimbursement for expenses; and
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| (4) a requirement that the investment adviser submit | 25 |
| periodic written
reports, on at least a quarterly basis, | 26 |
| for the board's review at its regularly
scheduled meetings. |
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| All returns on investment shall be reported as net returns
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| after payment of all fees, commissions, and any other | 3 |
| compensation.
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| (b-5) Each contract described in subsection (b) shall also | 5 |
| include (i) full disclosure of direct and indirect fees, | 6 |
| commissions, penalties, and other compensation, including
| 7 |
| reimbursement for expenses, that may be paid by or on behalf of | 8 |
| the investment adviser or consultant in connection with the | 9 |
| provision of services to the pension fund and (ii) a | 10 |
| requirement that the investment adviser or consultant update | 11 |
| the disclosure promptly after a modification of those payments | 12 |
| or an additional payment. | 13 |
| Within 30 days after the effective date of this amendatory | 14 |
| Act of the 95th General Assembly, each investment adviser and | 15 |
| consultant providing services on the effective date or subject | 16 |
| to an existing contract for the provision of services must | 17 |
| disclose to the board of trustees all direct and indirect fees, | 18 |
| commissions, penalties, and other compensation paid by or on
| 19 |
| behalf of the investment adviser or consultant in connection | 20 |
| with the provision of those services and shall update that | 21 |
| disclosure promptly after a modification of those payments or | 22 |
| an additional payment. | 23 |
| A person required to make a disclosure under subsection (d) | 24 |
| is also required to disclose direct and indirect fees, | 25 |
| commissions, penalties, or other compensation that shall or may | 26 |
| be paid by or on behalf of the person in connection with the |
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| rendering of those services. The person shall update the | 2 |
| disclosure promptly after a modification of those payments or | 3 |
| an additional payment. | 4 |
| The disclosures required by this subsection shall be in | 5 |
| writing and shall include the date and amount of each payment | 6 |
| and the name and address of each recipient of a payment. | 7 |
| (c) Within 30 days after appointing an investment adviser | 8 |
| or consultant , the board shall
submit a copy of the contract to | 9 |
| the Division Department of Insurance of the Department of | 10 |
| Financial and Professional Regulation .
| 11 |
| (d) Investment services provided by a person other than an | 12 |
| investment
adviser appointed under this Section, including but | 13 |
| not limited to services
provided by the kinds of persons listed | 14 |
| in items (1) through (4) of subsection
(a), shall be rendered | 15 |
| only after full written disclosure of direct and
indirect fees, | 16 |
| commissions, penalties, and any other compensation that shall | 17 |
| or
may be received by the person rendering those services.
| 18 |
| (e) The board of trustees of each pension fund shall retain | 19 |
| records of
investment transactions in accordance with the rules | 20 |
| of the Department of
Financial and Professional Regulation | 21 |
| Insurance .
| 22 |
| (Source: P.A. 90-507, eff. 8-22-97.)
| 23 |
| (40 ILCS 5/1-125 new)
| 24 |
| Sec. 1-125. Prohibition on gifts. | 25 |
| (a) For the purposes of this Section: |
|
|
|
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| "Gift" means a gift as defined in Section 1-5 of the State | 2 |
| Officials and Employees Ethics Act. | 3 |
| "Prohibited source" means a person or entity who: | 4 |
| (i) is seeking official action (A) by the board or (B) | 5 |
| by a board member; | 6 |
| (ii) does business or seeks to do business (A) with the | 7 |
| board or (B) with a board member; | 8 |
| (iii) has interests that may be substantially affected | 9 |
| by the performance or non-performance of the official | 10 |
| duties of the board member; or | 11 |
| (iv) is registered or required to be registered with | 12 |
| the Secretary of State under the Lobbyist Registration Act, | 13 |
| except that an entity not otherwise a prohibited source | 14 |
| does not become a prohibited source merely because a | 15 |
| registered lobbyist is one of its members or serves on its | 16 |
| board of directors. | 17 |
| (b) No trustee of a board created under Article 3 or 4 of | 18 |
| this Code shall intentionally solicit or accept any gift from | 19 |
| any prohibited source as prescribed in Article 10 of the State | 20 |
| Officials and Employees Ethics Act, including the exceptions | 21 |
| contained in Section 10-15 of that Act, other than paragraphs | 22 |
| (4) and (5) of that Section. Solicitation or acceptance of | 23 |
| educational materials, however, is not prohibited. For the | 24 |
| purposes of this Section, references to "State employee" and | 25 |
| "employee" in Article 10 of the State Officials and Employees | 26 |
| Ethics Act shall include a trustee of a board created under |
|
|
|
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LRB095 17097 AMC 43150 b |
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| 1 |
| Article 3 or 4 of this Code. | 2 |
| (c) A municipality may adopt or maintain policies or | 3 |
| ordinances that are more restrictive than those set forth in | 4 |
| this Section and may continue to follow any existing policies | 5 |
| or ordinances that are more restrictive or are in addition to | 6 |
| those set forth in this Section. | 7 |
| (d) Violation of this Section is a Class A misdemeanor.
| 8 |
| (40 ILCS 5/1A-104)
| 9 |
| Sec. 1A-104. Examinations and investigations.
| 10 |
| (a) The Division shall make periodic examinations and | 11 |
| investigations of all
pension funds established under this Code | 12 |
| and maintained for the benefit of
employees and officers of | 13 |
| governmental units in the State of Illinois.
However, in lieu | 14 |
| of making an examination and investigation, the Division
may | 15 |
| accept and rely upon a report of audit or examination of any | 16 |
| pension fund
made by an independent certified public accountant | 17 |
| pursuant to the provisions
of the Article of this Code | 18 |
| governing the pension fund. The acceptance of the
report of | 19 |
| audit or examination does not bar the Division from making a | 20 |
| further
audit, examination, and investigation if deemed | 21 |
| necessary by the Division.
| 22 |
| The Department may implement a flexible system of | 23 |
| examinations under
which it directs resources as it deems | 24 |
| necessary or appropriate. In
consultation with the pension fund | 25 |
| being examined, the Division may retain
attorneys, independent |
|
|
|
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| 1 |
| actuaries, independent certified public accountants, and
other | 2 |
| professionals and specialists as examiners, the cost of which | 3 |
| (except in
the case of pension funds established under Article | 4 |
| 3 or 4) shall be borne by
the pension fund that is the subject | 5 |
| of the examination.
| 6 |
| (b) The Division shall examine or investigate each pension | 7 |
| fund established
under Article 3 or Article 4 of this Code. The | 8 |
| schedule of each examination shall be such that each fund shall | 9 |
| be examined once every 3 years.
| 10 |
| Each examination shall include the following:
| 11 |
| (1) an audit of financial transactions, investment | 12 |
| policies, and
procedures;
| 13 |
| (2) an examination of books, records, documents, | 14 |
| files, and other
pertinent memoranda relating to | 15 |
| financial, statistical, and administrative
operations;
| 16 |
| (3) a review of policies and procedures maintained for | 17 |
| the administration
and operation of the pension fund;
| 18 |
| (4) a determination of whether or not full effect is | 19 |
| being given to the
statutory provisions governing the | 20 |
| operation of the pension fund;
| 21 |
| (5) a determination of whether or not the | 22 |
| administrative policies in force
are in accord with the | 23 |
| purposes of the statutory provisions and effectively
| 24 |
| protect and preserve the rights and equities of the | 25 |
| participants; and
| 26 |
| (6) a determination of whether or not proper financial |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| and statistical
records have been established and adequate | 2 |
| documentary evidence is recorded and
maintained in support | 3 |
| of the several types of annuity and benefit payments
being | 4 |
| made ; and .
| 5 |
| (7) a determination of whether or not the calculations | 6 |
| made by the fund for the payment of all annuities and | 7 |
| benefits are accurate. | 8 |
| In addition, the Division may conduct investigations, | 9 |
| which shall be
identified as such and which may include one or | 10 |
| more of the items listed in
this subsection.
| 11 |
| A copy of the report of examination or investigation as | 12 |
| prepared by the
Division shall be submitted to the secretary of | 13 |
| the board of trustees of the
pension fund examined or | 14 |
| investigated and to the chief executive officer of the | 15 |
| municipality . The Director, upon request, shall grant
a hearing | 16 |
| to the officers or trustees of the pension fund or their duly
| 17 |
| appointed representatives, upon any facts contained in the | 18 |
| report of
examination. The hearing shall be conducted before | 19 |
| filing the report or making
public any information contained in | 20 |
| the report. The Director may withhold the
report from public | 21 |
| inspection for up to 60 days following the hearing.
| 22 |
| (Source: P.A. 90-507, eff. 8-22-97.)
| 23 |
| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 24 |
| Sec. 2-124. Contributions by State.
| 25 |
| (a) The State shall make contributions to the System by
|
|
|
|
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|
| 1 |
| appropriations of amounts which, together with the | 2 |
| contributions of
participants, interest earned on investments, | 3 |
| and other income
will meet the cost of maintaining and | 4 |
| administering the System on a 90%
funded basis in accordance | 5 |
| with actuarial recommendations.
| 6 |
| (b) The Board shall determine the amount of State
| 7 |
| contributions required for each fiscal year on the basis of the
| 8 |
| actuarial tables and other assumptions adopted by the Board and | 9 |
| the
prescribed rate of interest, using the formula in | 10 |
| subsection (c).
| 11 |
| (c) For State fiscal years 2011 through 2045, the minimum | 12 |
| contribution
to the System to be made by the State for each | 13 |
| fiscal year shall be an amount
determined by the System to be | 14 |
| sufficient to bring the total assets of the
System up to 90% of | 15 |
| the total actuarial liabilities of the System by the end of
| 16 |
| State fiscal year 2045. In making these determinations, the | 17 |
| required State
contribution shall be calculated each year as a | 18 |
| level percentage of payroll
over the years remaining to and | 19 |
| including fiscal year 2045 and shall be
determined under the | 20 |
| projected unit credit actuarial cost method.
| 21 |
| For State fiscal years 1996 through 2005, the State | 22 |
| contribution to
the System, as a percentage of the applicable | 23 |
| employee payroll, shall be
increased in equal annual increments | 24 |
| so that by State fiscal year 2011, the
State is contributing at | 25 |
| the rate required under this Section.
| 26 |
| Notwithstanding any other provision of this Article, the |
|
|
|
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| total required State
contribution for State fiscal year 2006 is | 2 |
| $4,157,000.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2007 is | 5 |
| $5,220,300.
| 6 |
| For each of State fiscal years 2008 through 2010, the State | 7 |
| contribution to
the System, as a percentage of the applicable | 8 |
| employee payroll, shall be
increased in equal annual increments | 9 |
| from the required State contribution for State fiscal year | 10 |
| 2007, so that by State fiscal year 2011, the
State is | 11 |
| contributing at the rate otherwise required under this Section.
| 12 |
| Beginning in State fiscal year 2046, the minimum State | 13 |
| contribution for
each fiscal year shall be the amount needed to | 14 |
| maintain the total assets of
the System at 90% of the total | 15 |
| actuarial liabilities of the System.
| 16 |
| Amounts received by the System pursuant to Section 25 of | 17 |
| the Budget Stabilization Act or Section 8.12 of the State | 18 |
| Finance Act in any fiscal year do not reduce and do not | 19 |
| constitute payment of any portion of the minimum State | 20 |
| contribution required under this Article in that fiscal year. | 21 |
| Such amounts shall not reduce, and shall not be included in the | 22 |
| calculation of, the required State contributions under this | 23 |
| Article in any future year until the System has reached a | 24 |
| funding ratio of at least 90%. A reference in this Article to | 25 |
| the "required State contribution" or any substantially similar | 26 |
| term does not include or apply to any amounts payable to the |
|
|
|
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| 1 |
| System under Section 25 of the Budget Stabilization Act.
| 2 |
| Notwithstanding any other provision of this Section, the | 3 |
| required State
contribution for State fiscal year 2005 and for | 4 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 5 |
| under this Section and
certified under Section 2-134, shall not | 6 |
| exceed an amount equal to (i) the
amount of the required State | 7 |
| contribution that would have been calculated under
this Section | 8 |
| for that fiscal year if the System had not received any | 9 |
| payments
under subsection (d) of Section 7.2 of the General | 10 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 11 |
| total debt service payments for that fiscal
year on the bonds | 12 |
| issued for the purposes of that Section 7.2, as determined
and | 13 |
| certified by the Comptroller, that is the same as the System's | 14 |
| portion of
the total moneys distributed under subsection (d) of | 15 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 16 |
| this maximum for State fiscal years 2008 through 2010, however, | 17 |
| the amount referred to in item (i) shall be increased, as a | 18 |
| percentage of the applicable employee payroll, in equal | 19 |
| increments calculated from the sum of the required State | 20 |
| contribution for State fiscal year 2007 plus the applicable | 21 |
| portion of the State's total debt service payments for fiscal | 22 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 23 |
| of the General
Obligation Bond Act, so that, by State fiscal | 24 |
| year 2011, the
State is contributing at the rate otherwise | 25 |
| required under this Section.
| 26 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, |
|
|
|
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| 1 |
| eff. 6-6-06.)
| 2 |
| (40 ILCS 5/3-141.1 new) | 3 |
| Sec. 3-141.1. Award of benefits. Prior to the board's | 4 |
| determination of benefits, the board shall provide, in writing, | 5 |
| the total amount of the annuity for a member and all | 6 |
| information used in the calculation of that benefit to the | 7 |
| Treasurer of the municipality. If the Treasurer is of the | 8 |
| opinion that the calculated annuity is incorrect, the Treasurer | 9 |
| shall immediately notify the board. The board shall review the | 10 |
| Treasurer's findings, and if the Board concurs that an error | 11 |
| exists it shall re-determine the annuity so that it is | 12 |
| calculated in accordance with the Illinois Pension Code.
| 13 |
| (40 ILCS 5/3-143) (from Ch. 108 1/2, par. 3-143)
| 14 |
| Sec. 3-143. Report by pension board. | 15 |
| (a) The pension board shall report annually to the city
| 16 |
| council or board of trustees of the municipality on the | 17 |
| condition of the
pension fund at the end of its most recently | 18 |
| completed fiscal year. The
report shall be made prior to the | 19 |
| council or board meeting held for the levying
of taxes for the | 20 |
| year for which the report is made.
| 21 |
| The pension board shall certify and provide the following | 22 |
| information to the city council or board of trustees of the | 23 |
| municipality :
| 24 |
| (1) the total assets of the fund in its custody at the |
|
|
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| end of the fiscal
year and the current market value of | 2 |
| those assets ;
| 3 |
| (2) the estimated receipts during the next succeeding | 4 |
| fiscal year from
deductions from the salaries of police | 5 |
| officers, and
from all other sources;
| 6 |
| (3) the estimated amount required during the next | 7 |
| succeeding fiscal year
to (a) pay all pensions and other | 8 |
| obligations provided
in this Article, and (b) to meet the | 9 |
| annual requirements of the fund as
provided in Sections | 10 |
| 3-125 and 3-127; and
| 11 |
| (4) the total net income received from investment of | 12 |
| assets along with the assumed investment return and actual | 13 |
| investment return received by the fund during its most | 14 |
| recently completed fiscal year , compared to the total net
| 15 |
| such income , assumed investment return, and actual | 16 |
| investment return received during the preceding fiscal | 17 |
| year ; .
| 18 |
| (5) the total number of active employees who are | 19 |
| financially contributing to the fund; | 20 |
| (6) the total amount that was disbursed in benefits | 21 |
| during the fiscal year, including the number of and total | 22 |
| amount disbursed to (i) annuitants in receipt of a regular | 23 |
| retirement pension, (ii) recipients being paid a | 24 |
| disability pension, and (iii) survivors and children in | 25 |
| receipt of benefits; | 26 |
| (7) the funded ratio of the fund; |
|
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| (8) the unfunded liability carried by the fund, along | 2 |
| with an actuarial explanation of the unfunded liability; | 3 |
| and | 4 |
| (9) the investment policy of the pension board under | 5 |
| the statutory investment restrictions imposed on the fund. | 6 |
| Before the pension board makes its report, the municipality | 7 |
| shall have the assets
of the fund and their current market | 8 |
| value verified by an independent certified
public accountant of | 9 |
| its choice.
| 10 |
| (b) The municipality is authorized to publish the report | 11 |
| submitted under this Section. This publication may be made, | 12 |
| without limitation, by publication in a local newspaper of | 13 |
| general circulation in the municipality or by publication on | 14 |
| the municipality's Internet website. If the municipality | 15 |
| publishes the report, then that publication must include all of | 16 |
| the information submitted by the pension board under subsection | 17 |
| (a). | 18 |
| (Source: P.A. 90-507, eff. 8-22-97.)
| 19 |
| (40 ILCS 5/3-144.5 new)
| 20 |
| Sec. 3-144.5. Fraud. Any person, member, trustee, or | 21 |
| employee of the board who knowingly
makes any false statement | 22 |
| or falsifies or permits to be falsified any
record of a fund in | 23 |
| any attempt to defraud such fund as a
result of such act, or | 24 |
| intentionally or knowingly defrauds a fund in any manner, is | 25 |
| guilty of a Class A misdemeanor.
|
|
|
|
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|
| 1 |
| (40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
| 2 |
| Sec. 4-134. Report for tax levy. (a) The board shall report | 3 |
| to the city council
or board of trustees of the municipality on | 4 |
| the condition of the pension fund
at the end of its most | 5 |
| recently completed fiscal year. The report shall
be made prior | 6 |
| to the council or board meeting held for appropriating and
| 7 |
| levying taxes for the year for which the report is made.
| 8 |
| The pension board in the report shall certify and provide | 9 |
| the following information to the city council or board of | 10 |
| trustees of the municipality :
| 11 |
| (1) the total assets of the fund and their current | 12 |
| market value of those assets ;
| 13 |
| (2) the estimated receipts during the next succeeding | 14 |
| fiscal year from
deductions from the salaries or wages
of | 15 |
| firefighters, and from all other sources;
| 16 |
| (3) the estimated amount necessary during the fiscal | 17 |
| year to meet the
annual actuarial requirements of the | 18 |
| pension fund as
provided in Sections 4-118 and 4-120;
| 19 |
| (4) the total net income received from investment of | 20 |
| assets along with the assumed investment return and actual | 21 |
| investment return received by the fund during its most | 22 |
| recently completed fiscal year , compared to the total net
| 23 |
| such income , assumed investment return, and actual | 24 |
| investment return received during the preceding fiscal | 25 |
| year; and |
|
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| (5) the increase in employer pension contributions | 2 |
| that results from the implementation of the provisions of | 3 |
| this amendatory Act of the 93rd General Assembly ; .
| 4 |
| (6) the total number of active employees who are | 5 |
| financially contributing to the fund; | 6 |
| (7) the total amount that was disbursed in benefits | 7 |
| during the fiscal year, including the number of and total | 8 |
| amount disbursed to (i) annuitants in receipt of a regular | 9 |
| retirement pension, (ii) recipients being paid a | 10 |
| disability pension, and (iii) survivors and children in | 11 |
| receipt of benefits; | 12 |
| (8) the funded ratio of the fund; | 13 |
| (9) the unfunded liability carried by the fund, along | 14 |
| with an actuarial explanation of the unfunded liability; | 15 |
| and | 16 |
| (10) the investment policy of the pension board under | 17 |
| the statutory investment restrictions imposed on the fund. | 18 |
| Before the pension board makes its report, the municipality | 19 |
| shall have the assets
of the fund and
their current market | 20 |
| value verified by an independent certified public
accountant of | 21 |
| its choice.
| 22 |
| (b) The municipality is authorized to publish the report | 23 |
| submitted under this Section. This publication may be made, | 24 |
| without limitation, by publication in a local newspaper of | 25 |
| general circulation in the municipality or by publication on | 26 |
| the municipality's Internet website. If the municipality |
|
|
|
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| 1 |
| publishes the report, then that publication must include all of | 2 |
| the information submitted by the pension board under subsection | 3 |
| (a). | 4 |
| (Source: P.A. 93-689, eff. 7-1-04.)
| 5 |
| (40 ILCS 5/4-138.5 new)
| 6 |
| Sec. 4-138.5. Fraud. Any person, member, trustee, or | 7 |
| employee of the board who knowingly
makes any false statement | 8 |
| or falsifies or permits to be falsified any
record of a fund in | 9 |
| any attempt to defraud such fund as a
result of such act, or | 10 |
| intentionally or knowingly defrauds a fund in any manner, is | 11 |
| guilty of a Class A misdemeanor.
| 12 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 13 |
| Sec. 14-131. Contributions by State.
| 14 |
| (a) The State shall make contributions to the System by | 15 |
| appropriations of
amounts which, together with other employer | 16 |
| contributions from trust, federal,
and other funds, employee | 17 |
| contributions, investment income, and other income,
will be | 18 |
| sufficient to meet the cost of maintaining and administering | 19 |
| the System
on a 90% funded basis in accordance with actuarial | 20 |
| recommendations.
| 21 |
| For the purposes of this Section and Section 14-135.08, | 22 |
| references to State
contributions refer only to employer | 23 |
| contributions and do not include employee
contributions that | 24 |
| are picked up or otherwise paid by the State or a
department on |
|
|
|
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LRB095 17097 AMC 43150 b |
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| 1 |
| behalf of the employee.
| 2 |
| (b) The Board shall determine the total amount of State | 3 |
| contributions
required for each fiscal year on the basis of the | 4 |
| actuarial tables and other
assumptions adopted by the Board, | 5 |
| using the formula in subsection (e).
| 6 |
| The Board shall also determine a State contribution rate | 7 |
| for each fiscal
year, expressed as a percentage of payroll, | 8 |
| based on the total required State
contribution for that fiscal | 9 |
| year (less the amount received by the System from
| 10 |
| appropriations under Section 8.12 of the State Finance Act and | 11 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 12 |
| Act, if any, for the fiscal year
ending on the June 30 | 13 |
| immediately preceding the applicable November 15
certification | 14 |
| deadline), the estimated payroll (including all forms of
| 15 |
| compensation) for personal services rendered by eligible | 16 |
| employees, and the
recommendations of the actuary.
| 17 |
| For the purposes of this Section and Section 14.1 of the | 18 |
| State Finance Act,
the term "eligible employees" includes | 19 |
| employees who participate in the System,
persons who may elect | 20 |
| to participate in the System but have not so elected,
persons | 21 |
| who are serving a qualifying period that is required for | 22 |
| participation,
and annuitants employed by a department as | 23 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 24 |
| (c) Contributions shall be made by the several departments | 25 |
| for each pay
period by warrants drawn by the State Comptroller | 26 |
| against their respective
funds or appropriations based upon |
|
|
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| 1 |
| vouchers stating the amount to be so
contributed. These amounts | 2 |
| shall be based on the full rate certified by the
Board under | 3 |
| Section 14-135.08 for that fiscal year.
From the effective date | 4 |
| of this amendatory Act of the 93rd General
Assembly through the | 5 |
| payment of the final payroll from fiscal year 2004
| 6 |
| appropriations, the several departments shall not make | 7 |
| contributions
for the remainder of fiscal year 2004 but shall | 8 |
| instead make payments
as required under subsection (a-1) of | 9 |
| Section 14.1 of the State Finance Act.
The several departments | 10 |
| shall resume those contributions at the commencement of
fiscal | 11 |
| year 2005.
| 12 |
| (d) If an employee is paid from trust funds or federal | 13 |
| funds, the
department or other employer shall pay employer | 14 |
| contributions from those funds
to the System at the certified | 15 |
| rate, unless the terms of the trust or the
federal-State | 16 |
| agreement preclude the use of the funds for that purpose, in
| 17 |
| which case the required employer contributions shall be paid by | 18 |
| the State.
From the effective date of this amendatory
Act of | 19 |
| the 93rd General Assembly through the payment of the final
| 20 |
| payroll from fiscal year 2004 appropriations, the department or | 21 |
| other
employer shall not pay contributions for the remainder of | 22 |
| fiscal year
2004 but shall instead make payments as required | 23 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 24 |
| Act. The department or other employer shall
resume payment of
| 25 |
| contributions at the commencement of fiscal year 2005.
| 26 |
| (e) For State fiscal years 2011 through 2045, the minimum |
|
|
|
HB5088 Enrolled |
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| 1 |
| contribution
to the System to be made by the State for each | 2 |
| fiscal year shall be an amount
determined by the System to be | 3 |
| sufficient to bring the total assets of the
System up to 90% of | 4 |
| the total actuarial liabilities of the System by the end
of | 5 |
| State fiscal year 2045. In making these determinations, the | 6 |
| required State
contribution shall be calculated each year as a | 7 |
| level percentage of payroll
over the years remaining to and | 8 |
| including fiscal year 2045 and shall be
determined under the | 9 |
| projected unit credit actuarial cost method.
| 10 |
| For State fiscal years 1996 through 2005, the State | 11 |
| contribution to
the System, as a percentage of the applicable | 12 |
| employee payroll, shall be
increased in equal annual increments | 13 |
| so that by State fiscal year 2011, the
State is contributing at | 14 |
| the rate required under this Section; except that
(i) for State | 15 |
| fiscal year 1998, for all purposes of this Code and any other
| 16 |
| law of this State, the certified percentage of the applicable | 17 |
| employee payroll
shall be 5.052% for employees earning eligible | 18 |
| creditable service under Section
14-110 and 6.500% for all | 19 |
| other employees, notwithstanding any contrary
certification | 20 |
| made under Section 14-135.08 before the effective date of this
| 21 |
| amendatory Act of 1997, and (ii)
in the following specified | 22 |
| State fiscal years, the State contribution to
the System shall | 23 |
| not be less than the following indicated percentages of the
| 24 |
| applicable employee payroll, even if the indicated percentage | 25 |
| will produce a
State contribution in excess of the amount | 26 |
| otherwise required under this
subsection and subsection (a):
|
|
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|
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| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 2 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution to the System for State | 5 |
| fiscal year 2006 is $203,783,900.
| 6 |
| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution to the System for State | 8 |
| fiscal year 2007 is $344,164,400.
| 9 |
| For each of State fiscal years 2008 through 2010, the State | 10 |
| contribution to
the System, as a percentage of the applicable | 11 |
| employee payroll, shall be
increased in equal annual increments | 12 |
| from the required State contribution for State fiscal year | 13 |
| 2007, so that by State fiscal year 2011, the
State is | 14 |
| contributing at the rate otherwise required under this Section.
| 15 |
| Beginning in State fiscal year 2046, the minimum State | 16 |
| contribution for
each fiscal year shall be the amount needed to | 17 |
| maintain the total assets of
the System at 90% of the total | 18 |
| actuarial liabilities of the System.
| 19 |
| Amounts received by the System pursuant to Section 25 of | 20 |
| the Budget Stabilization Act or Section 8.12 of the State | 21 |
| Finance Act in any fiscal year do not reduce and do not | 22 |
| constitute payment of any portion of the minimum State | 23 |
| contribution required under this Article in that fiscal year. | 24 |
| Such amounts shall not reduce, and shall not be included in the | 25 |
| calculation of, the required State contributions under this | 26 |
| Article in any future year until the System has reached a |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| funding ratio of at least 90%. A reference in this Article to | 2 |
| the "required State contribution" or any substantially similar | 3 |
| term does not include or apply to any amounts payable to the | 4 |
| System under Section 25 of the Budget Stabilization Act.
| 5 |
| Notwithstanding any other provision of this Section, the | 6 |
| required State
contribution for State fiscal year 2005 and for | 7 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 8 |
| under this Section and
certified under Section 14-135.08, shall | 9 |
| not exceed an amount equal to (i) the
amount of the required | 10 |
| State contribution that would have been calculated under
this | 11 |
| Section for that fiscal year if the System had not received any | 12 |
| payments
under subsection (d) of Section 7.2 of the General | 13 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 14 |
| total debt service payments for that fiscal
year on the bonds | 15 |
| issued for the purposes of that Section 7.2, as determined
and | 16 |
| certified by the Comptroller, that is the same as the System's | 17 |
| portion of
the total moneys distributed under subsection (d) of | 18 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 19 |
| this maximum for State fiscal years 2008 through 2010, however, | 20 |
| the amount referred to in item (i) shall be increased, as a | 21 |
| percentage of the applicable employee payroll, in equal | 22 |
| increments calculated from the sum of the required State | 23 |
| contribution for State fiscal year 2007 plus the applicable | 24 |
| portion of the State's total debt service payments for fiscal | 25 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 26 |
| of the General
Obligation Bond Act, so that, by State fiscal |
|
|
|
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LRB095 17097 AMC 43150 b |
|
| 1 |
| year 2011, the
State is contributing at the rate otherwise | 2 |
| 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.
|
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 2 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
| 3 |
| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 4 |
| Sec. 15-155. Employer contributions.
| 5 |
| (a) The State of Illinois shall make contributions by | 6 |
| appropriations of
amounts which, together with the other | 7 |
| employer contributions from trust,
federal, and other funds, | 8 |
| employee contributions, income from investments,
and other | 9 |
| income of this System, will be sufficient to meet the cost of
| 10 |
| maintaining and administering the System on a 90% funded basis | 11 |
| in accordance
with actuarial recommendations.
| 12 |
| The Board shall determine the amount of State contributions | 13 |
| required for
each fiscal year on the basis of the actuarial | 14 |
| tables and other assumptions
adopted by the Board and the | 15 |
| recommendations of the actuary, using the formula
in subsection | 16 |
| (a-1).
| 17 |
| (a-1) For State fiscal years 2011 through 2045, the minimum | 18 |
| contribution
to the System to be made by the State for each | 19 |
| fiscal year shall be an amount
determined by the System to be | 20 |
| sufficient to bring the total assets of the
System up to 90% of | 21 |
| the total actuarial liabilities of the System by the end of
| 22 |
| State fiscal year 2045. In making these determinations, the | 23 |
| required State
contribution shall be calculated each year as a | 24 |
| level percentage of payroll
over the years remaining to and | 25 |
| including fiscal year 2045 and shall be
determined under the |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
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| 1 |
| projected unit credit actuarial cost method.
| 2 |
| For State fiscal years 1996 through 2005, the State | 3 |
| contribution to
the System, as a percentage of the applicable | 4 |
| employee payroll, shall be
increased in equal annual increments | 5 |
| so that by State fiscal year 2011, the
State is contributing at | 6 |
| the rate required under this Section.
| 7 |
| Notwithstanding any other provision of this Article, the | 8 |
| total required State
contribution for State fiscal year 2006 is | 9 |
| $166,641,900.
| 10 |
| Notwithstanding any other provision of this Article, the | 11 |
| total required State
contribution for State fiscal year 2007 is | 12 |
| $252,064,100.
| 13 |
| For each of State fiscal years 2008 through 2010, 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 |
| Beginning in State fiscal year 2046, the minimum State | 20 |
| contribution for
each fiscal year shall be the amount needed to | 21 |
| maintain the total assets of
the System at 90% of the total | 22 |
| actuarial liabilities of the System.
| 23 |
| Amounts received by the System pursuant to Section 25 of | 24 |
| the Budget Stabilization Act or Section 8.12 of the State | 25 |
| Finance Act in any fiscal year do not reduce and do not | 26 |
| constitute payment of any portion of the minimum State |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
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| 1 |
| contribution required under this Article in that fiscal year. | 2 |
| Such amounts shall not reduce, and shall not be included in the | 3 |
| calculation of, the required State contributions under this | 4 |
| Article in any future year until the System has reached a | 5 |
| funding ratio of at least 90%. A reference in this Article to | 6 |
| the "required State contribution" or any substantially similar | 7 |
| term does not include or apply to any amounts payable to the | 8 |
| System under Section 25 of the Budget Stabilization Act. | 9 |
| Notwithstanding any other provision of this Section, the | 10 |
| required State
contribution for State fiscal year 2005 and for | 11 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 12 |
| under this Section and
certified under Section 15-165, shall | 13 |
| not exceed an amount equal to (i) the
amount of the required | 14 |
| State contribution that would have been calculated under
this | 15 |
| Section for that fiscal year if the System had not received any | 16 |
| payments
under subsection (d) of Section 7.2 of the General | 17 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 18 |
| total debt service payments for that fiscal
year on the bonds | 19 |
| issued for the purposes of that Section 7.2, as determined
and | 20 |
| certified by the Comptroller, that is the same as the System's | 21 |
| portion of
the total moneys distributed under subsection (d) of | 22 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 23 |
| this maximum for State fiscal years 2008 through 2010, however, | 24 |
| the amount referred to in item (i) shall be increased, as a | 25 |
| percentage of the applicable employee payroll, in equal | 26 |
| increments calculated from the sum of the required State |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| contribution for State fiscal year 2007 plus the applicable | 2 |
| portion of the State's total debt service payments for fiscal | 3 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 4 |
| of the General
Obligation Bond Act, so that, by State fiscal | 5 |
| year 2011, the
State is contributing at the rate otherwise | 6 |
| required under this Section.
| 7 |
| (b) If an employee is paid from trust or federal funds, the | 8 |
| employer
shall pay to the Board contributions from those funds | 9 |
| which are
sufficient to cover the accruing normal costs on | 10 |
| behalf of the employee.
However, universities having employees | 11 |
| who are compensated out of local
auxiliary funds, income funds, | 12 |
| or service enterprise funds are not required
to pay such | 13 |
| contributions on behalf of those employees. The local auxiliary
| 14 |
| funds, income funds, and service enterprise funds of | 15 |
| universities shall not be
considered trust funds for the | 16 |
| purpose of this Article, but funds of alumni
associations, | 17 |
| foundations, and athletic associations which are affiliated | 18 |
| with
the universities included as employers under this Article | 19 |
| and other employers
which do not receive State appropriations | 20 |
| are considered to be trust funds for
the purpose of this | 21 |
| Article.
| 22 |
| (b-1) The City of Urbana and the City of Champaign shall | 23 |
| each make
employer contributions to this System for their | 24 |
| respective firefighter
employees who participate in this | 25 |
| System pursuant to subsection (h) of Section
15-107. The rate | 26 |
| of contributions to be made by those municipalities shall
be |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
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| 1 |
| determined annually by the Board on the basis of the actuarial | 2 |
| assumptions
adopted by the Board and the recommendations of the | 3 |
| actuary, and shall be
expressed as a percentage of salary for | 4 |
| each such employee. The Board shall
certify the rate to the | 5 |
| affected municipalities as soon as may be practical.
The | 6 |
| employer contributions required under this subsection shall be | 7 |
| remitted by
the municipality to the System at the same time and | 8 |
| in the same manner as
employee contributions.
| 9 |
| (c) Through State fiscal year 1995: The total employer | 10 |
| contribution shall
be apportioned among the various funds of | 11 |
| the State and other employers,
whether trust, federal, or other | 12 |
| funds, in accordance with actuarial procedures
approved by the | 13 |
| Board. State of Illinois contributions for employers receiving
| 14 |
| State appropriations for personal services shall be payable | 15 |
| from appropriations
made to the employers or to the System. The | 16 |
| contributions for Class I
community colleges covering earnings | 17 |
| other than those paid from trust and
federal funds, shall be | 18 |
| payable solely from appropriations to the Illinois
Community | 19 |
| College Board or the System for employer contributions.
| 20 |
| (d) Beginning in State fiscal year 1996, the required State | 21 |
| contributions
to the System shall be appropriated directly to | 22 |
| the System and shall be payable
through vouchers issued in | 23 |
| accordance with subsection (c) of Section 15-165, except as | 24 |
| provided in subsection (g).
| 25 |
| (e) The State Comptroller shall draw warrants payable to | 26 |
| the System upon
proper certification by the System or by the |
|
|
|
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| 1 |
| employer in accordance with the
appropriation laws and this | 2 |
| Code.
| 3 |
| (f) Normal costs under this Section means liability for
| 4 |
| pensions and other benefits which accrues to the System because | 5 |
| of the
credits earned for service rendered by the participants | 6 |
| during the
fiscal year and expenses of administering the | 7 |
| System, but shall not
include the principal of or any | 8 |
| redemption premium or interest on any bonds
issued by the Board | 9 |
| or any expenses incurred or deposits required in
connection | 10 |
| therewith.
| 11 |
| (g) If the amount of a participant's earnings for any | 12 |
| academic year used to determine the final rate of earnings, | 13 |
| determined on a full-time equivalent basis, exceeds the amount | 14 |
| of his or her earnings with the same employer for the previous | 15 |
| academic year, determined on a full-time equivalent basis, by | 16 |
| more than 6%, the participant's employer shall pay to the | 17 |
| System, in addition to all other payments required under this | 18 |
| Section and in accordance with guidelines established by the | 19 |
| System, the present value of the increase in benefits resulting | 20 |
| from the portion of the increase in earnings that is in excess | 21 |
| of 6%. This present value shall be computed by the System on | 22 |
| the basis of the actuarial assumptions and tables used in the | 23 |
| most recent actuarial valuation of the System that is available | 24 |
| at the time of the computation. The System may require the | 25 |
| employer to provide any pertinent information or | 26 |
| documentation. |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| Whenever it determines that a payment is or may be required | 2 |
| under this subsection (g), the System shall calculate the | 3 |
| amount of the payment and bill the employer for that amount. | 4 |
| The bill shall specify the calculations used to determine the | 5 |
| amount due. If the employer disputes the amount of the bill, it | 6 |
| may, within 30 days after receipt of the bill, apply to the | 7 |
| System in writing for a recalculation. The application must | 8 |
| specify in detail the grounds of the dispute and, if the | 9 |
| employer asserts that the calculation is subject to subsection | 10 |
| (h) or (i) of this Section, must include an affidavit setting | 11 |
| forth and attesting to all facts within the employer's | 12 |
| knowledge that are pertinent to the applicability of subsection | 13 |
| (h) or (i). Upon receiving a timely application for | 14 |
| recalculation, the System shall review the application and, if | 15 |
| appropriate, recalculate the amount due.
| 16 |
| The employer contributions required under this subsection | 17 |
| (f) may be paid in the form of a lump sum within 90 days after | 18 |
| receipt of the bill. If the employer contributions are not paid | 19 |
| within 90 days after receipt of the bill, then interest will be | 20 |
| charged at a rate equal to the System's annual actuarially | 21 |
| assumed rate of return on investment compounded annually from | 22 |
| the 91st day after receipt of the bill. Payments must be | 23 |
| concluded within 3 years after the employer's receipt of the | 24 |
| bill. | 25 |
| (h) This subsection (h) applies only to payments made or | 26 |
| salary increases given on or after June 1, 2005 but before July |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 2 |
| require the System to refund any payments received before July | 3 |
| 31, 2006 (the effective date of Public Act 94-1057). | 4 |
| When assessing payment for any amount due under subsection | 5 |
| (g), the System shall exclude earnings increases paid to | 6 |
| participants under contracts or collective bargaining | 7 |
| agreements entered into, amended, or renewed before June 1, | 8 |
| 2005.
| 9 |
| When assessing payment for any amount due under subsection | 10 |
| (g), the System shall exclude earnings increases paid to a | 11 |
| participant at a time when the participant is 10 or more years | 12 |
| from retirement eligibility under Section 15-135.
| 13 |
| When assessing payment for any amount due under subsection | 14 |
| (g), the System shall exclude earnings increases resulting from | 15 |
| overload work, including a contract for summer teaching, or | 16 |
| overtime when the employer has certified to the System, and the | 17 |
| System has approved the certification, that: (i) in the case of | 18 |
| overloads (A) the overload work is for the sole purpose of | 19 |
| academic instruction in excess of the standard number of | 20 |
| instruction hours for a full-time employee occurring during the | 21 |
| academic year that the overload is paid and (B) the earnings | 22 |
| increases are equal to or less than the rate of pay for | 23 |
| academic instruction computed using the participant's current | 24 |
| salary rate and work schedule; and (ii) in the case of | 25 |
| overtime, the overtime was necessary for the educational | 26 |
| mission. |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| When assessing payment for any amount due under subsection | 2 |
| (g), the System shall exclude any earnings increase resulting | 3 |
| from (i) a promotion for which the employee moves from one | 4 |
| classification to a higher classification under the State | 5 |
| Universities Civil Service System, (ii) a promotion in academic | 6 |
| rank for a tenured or tenure-track faculty position, or (iii) a | 7 |
| promotion that the Illinois Community College Board has | 8 |
| recommended in accordance with subsection (k) of this Section. | 9 |
| These earnings increases shall be excluded only if the | 10 |
| promotion is to a position that has existed and been filled by | 11 |
| a member for no less than one complete academic year and the | 12 |
| earnings increase as a result of the promotion is an increase | 13 |
| that results in an amount no greater than the average salary | 14 |
| paid for other similar positions. | 15 |
| (i) When assessing payment for any amount due under | 16 |
| subsection (g), the System shall exclude any salary increase | 17 |
| described in subsection (h) of this Section given on or after | 18 |
| July 1, 2011 but before July 1, 2014 under a contract or | 19 |
| collective bargaining agreement entered into, amended, or | 20 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 21 |
| Notwithstanding any other provision of this Section, any | 22 |
| payments made or salary increases given after June 30, 2014 | 23 |
| shall be used in assessing payment for any amount due under | 24 |
| subsection (g) of this Section.
| 25 |
| (j) The System shall prepare a report and file copies of | 26 |
| the report with the Governor and the General Assembly by |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| January 1, 2007 that contains all of the following information: | 2 |
| (1) The number of recalculations required by the | 3 |
| changes made to this Section by Public Act 94-1057 for each | 4 |
| employer. | 5 |
| (2) The dollar amount by which each employer's | 6 |
| contribution to the System was changed due to | 7 |
| recalculations required by Public Act 94-1057. | 8 |
| (3) The total amount the System received from each | 9 |
| employer as a result of the changes made to this Section by | 10 |
| Public Act 94-4. | 11 |
| (4) The increase in the required State contribution | 12 |
| resulting from the changes made to this Section by Public | 13 |
| Act 94-1057. | 14 |
| (k) The Illinois Community College Board shall adopt rules | 15 |
| for recommending lists of promotional positions submitted to | 16 |
| the Board by community colleges and for reviewing the | 17 |
| promotional lists on an annual basis. When recommending | 18 |
| promotional lists, the Board shall consider the similarity of | 19 |
| the positions submitted to those positions recognized for State | 20 |
| universities by the State Universities Civil Service System. | 21 |
| The Illinois Community College Board shall file a copy of its | 22 |
| findings with the System. The System shall consider the | 23 |
| findings of the Illinois Community College Board when making | 24 |
| determinations under this Section. The System shall not exclude | 25 |
| any earnings increases resulting from a promotion when the | 26 |
| promotion was not submitted by a community college. Nothing in |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| this subsection (k) shall require any community college to | 2 |
| submit any information to the Community College Board.
| 3 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 4 |
| eff. 7-31-06; 95-331, eff. 8-21-07.)
| 5 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 6 |
| Sec. 16-158. Contributions by State and other employing | 7 |
| units.
| 8 |
| (a) The State shall make contributions to the System by | 9 |
| means of
appropriations from the Common School Fund and other | 10 |
| State funds of amounts
which, together with other employer | 11 |
| contributions, employee contributions,
investment income, and | 12 |
| other income, will be sufficient to meet the cost of
| 13 |
| maintaining and administering the System on a 90% funded basis | 14 |
| in accordance
with actuarial recommendations.
| 15 |
| The Board shall determine the amount of State contributions | 16 |
| required for
each fiscal year on the basis of the actuarial | 17 |
| tables and other assumptions
adopted by the Board and the | 18 |
| recommendations of the actuary, using the formula
in subsection | 19 |
| (b-3).
| 20 |
| (a-1) Annually, on or before November 15, the Board shall | 21 |
| certify to the
Governor the amount of the required State | 22 |
| contribution for the coming fiscal
year. The certification | 23 |
| shall include a copy of the actuarial recommendations
upon | 24 |
| which it is based.
| 25 |
| On or before May 1, 2004, the Board shall recalculate and |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| recertify to
the Governor the amount of the required State | 2 |
| contribution to the System for
State fiscal year 2005, taking | 3 |
| into account the amounts appropriated to and
received by the | 4 |
| System under subsection (d) of Section 7.2 of the General
| 5 |
| Obligation Bond Act.
| 6 |
| On or before July 1, 2005, the Board shall recalculate and | 7 |
| recertify
to the Governor the amount of the required State
| 8 |
| contribution to the System for State fiscal year 2006, taking | 9 |
| into account the changes in required State contributions made | 10 |
| by this amendatory Act of the 94th General Assembly.
| 11 |
| (b) Through State fiscal year 1995, the State contributions | 12 |
| shall be
paid to the System in accordance with Section 18-7 of | 13 |
| the School Code.
| 14 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 15 |
| of each month,
or as soon thereafter as may be practicable, the | 16 |
| Board shall submit vouchers
for payment of State contributions | 17 |
| to the System, in a total monthly amount of
one-twelfth of the | 18 |
| required annual State contribution certified under
subsection | 19 |
| (a-1).
From the
effective date of this amendatory Act of the | 20 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 21 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 22 |
| excess of the fiscal year 2004
certified contribution amount | 23 |
| determined under this Section
after taking into consideration | 24 |
| the transfer to the System
under subsection (a) of Section | 25 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 26 |
| the State Comptroller and
Treasurer by warrants drawn on the |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| funds appropriated to the System for that
fiscal year.
| 2 |
| If in any month the amount remaining unexpended from all | 3 |
| other appropriations
to the System for the applicable fiscal | 4 |
| year (including the appropriations to
the System under Section | 5 |
| 8.12 of the State Finance Act and Section 1 of the
State | 6 |
| Pension Funds Continuing Appropriation Act) is less than the | 7 |
| amount
lawfully vouchered under this subsection, the | 8 |
| difference shall be paid from the
Common School Fund under the | 9 |
| continuing appropriation authority provided in
Section 1.1 of | 10 |
| the State Pension Funds Continuing Appropriation Act.
| 11 |
| (b-2) Allocations from the Common School Fund apportioned | 12 |
| to school
districts not coming under this System shall not be | 13 |
| diminished or affected by
the provisions of this Article.
| 14 |
| (b-3) For State fiscal years 2011 through 2045, the minimum | 15 |
| contribution
to the System to be made by the State for each | 16 |
| fiscal year shall be an amount
determined by the System to be | 17 |
| sufficient to bring the total assets of the
System up to 90% of | 18 |
| the total actuarial liabilities of the System by the end of
| 19 |
| State fiscal year 2045. In making these determinations, the | 20 |
| required State
contribution shall be calculated each year as a | 21 |
| level percentage of payroll
over the years remaining to and | 22 |
| including fiscal year 2045 and shall be
determined under the | 23 |
| projected unit credit actuarial cost method.
| 24 |
| For State fiscal years 1996 through 2005, the State | 25 |
| contribution to the
System, as a percentage of the applicable | 26 |
| employee payroll, shall be increased
in equal annual increments |
|
|
|
HB5088 Enrolled |
- 50 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| so that by State fiscal year 2011, the State is
contributing at | 2 |
| the rate required under this Section; except that in the
| 3 |
| following specified State fiscal years, the State contribution | 4 |
| to the System
shall not be less than the following indicated | 5 |
| percentages of the applicable
employee payroll, even if the | 6 |
| indicated percentage will produce a State
contribution in | 7 |
| excess of the amount otherwise required under this subsection
| 8 |
| and subsection (a), and notwithstanding any contrary | 9 |
| certification made under
subsection (a-1) before the effective | 10 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 11 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 12 |
| 2003; and
13.56% in FY 2004.
| 13 |
| Notwithstanding any other provision of this Article, the | 14 |
| total required State
contribution for State fiscal year 2006 is | 15 |
| $534,627,700.
| 16 |
| Notwithstanding any other provision of this Article, the | 17 |
| total required State
contribution for State fiscal year 2007 is | 18 |
| $738,014,500.
| 19 |
| For each of State fiscal years 2008 through 2010, the State | 20 |
| contribution to
the System, as a percentage of the applicable | 21 |
| employee payroll, shall be
increased in equal annual increments | 22 |
| from the required State contribution for State fiscal year | 23 |
| 2007, so that by State fiscal year 2011, the
State is | 24 |
| contributing at the rate otherwise required under this Section.
| 25 |
| Beginning in State fiscal year 2046, the minimum State | 26 |
| contribution for
each fiscal year shall be the amount needed to |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| maintain the total assets of
the System at 90% of the total | 2 |
| actuarial liabilities of the System.
| 3 |
| Amounts received by the System pursuant to Section 25 of | 4 |
| the Budget Stabilization Act or Section 8.12 of the State | 5 |
| Finance Act in any fiscal year do not reduce and do not | 6 |
| constitute payment of any portion of the minimum State | 7 |
| contribution required under this Article in that fiscal year. | 8 |
| Such amounts shall not reduce, and shall not be included in the | 9 |
| calculation of, the required State contributions under this | 10 |
| Article in any future year until the System has reached a | 11 |
| funding ratio of at least 90%. A reference in this Article to | 12 |
| the "required State contribution" or any substantially similar | 13 |
| term does not include or apply to any amounts payable to the | 14 |
| System under Section 25 of the Budget Stabilization Act. | 15 |
| Notwithstanding any other provision of this Section, the | 16 |
| required State
contribution for State fiscal year 2005 and for | 17 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 18 |
| under this Section and
certified under subsection (a-1), shall | 19 |
| not exceed an amount equal to (i) the
amount of the required | 20 |
| State contribution that would have been calculated under
this | 21 |
| Section for that fiscal year if the System had not received any | 22 |
| payments
under subsection (d) of Section 7.2 of the General | 23 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 24 |
| total debt service payments for that fiscal
year on the bonds | 25 |
| issued for the purposes of that Section 7.2, as determined
and | 26 |
| certified by the Comptroller, that is the same as the System's |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| portion of
the total moneys distributed under subsection (d) of | 2 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 3 |
| this maximum for State fiscal years 2008 through 2010, however, | 4 |
| the amount referred to in item (i) shall be increased, as a | 5 |
| percentage of the applicable employee payroll, in equal | 6 |
| increments calculated from the sum of the required State | 7 |
| contribution for State fiscal year 2007 plus the applicable | 8 |
| portion of the State's total debt service payments for fiscal | 9 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 10 |
| of the General
Obligation Bond Act, so that, by State fiscal | 11 |
| year 2011, the
State is contributing at the rate otherwise | 12 |
| required under this Section.
| 13 |
| (c) Payment of the required State contributions and of all | 14 |
| pensions,
retirement annuities, death benefits, refunds, and | 15 |
| other benefits granted
under or assumed by this System, and all | 16 |
| expenses in connection with the
administration and operation | 17 |
| thereof, are obligations of the State.
| 18 |
| If members are paid from special trust or federal funds | 19 |
| which are
administered by the employing unit, whether school | 20 |
| district or other
unit, the employing unit shall pay to the | 21 |
| System from such
funds the full accruing retirement costs based | 22 |
| upon that
service, as determined by the System. Employer | 23 |
| contributions, based on
salary paid to members from federal | 24 |
| funds, may be forwarded by the distributing
agency of the State | 25 |
| of Illinois to the System prior to allocation, in an
amount | 26 |
| determined in accordance with guidelines established by such
|
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| agency and the System.
| 2 |
| (d) Effective July 1, 1986, any employer of a teacher as | 3 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 4 |
| employer's normal cost
of benefits based upon the teacher's | 5 |
| service, in addition to
employee contributions, as determined | 6 |
| by the System. Such employer
contributions shall be forwarded | 7 |
| monthly in accordance with guidelines
established by the | 8 |
| System.
| 9 |
| However, with respect to benefits granted under Section | 10 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 11 |
| of Section 16-106, the
employer's contribution shall be 12% | 12 |
| (rather than 20%) of the member's
highest annual salary rate | 13 |
| for each year of creditable service granted, and
the employer | 14 |
| shall also pay the required employee contribution on behalf of
| 15 |
| the teacher. For the purposes of Sections 16-133.4 and | 16 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 17 |
| 16-106 who is serving in that capacity
while on leave of | 18 |
| absence from another employer under this Article shall not
be | 19 |
| considered an employee of the employer from which the teacher | 20 |
| is on leave.
| 21 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 22 |
| shall pay to the System an employer contribution computed as | 23 |
| follows:
| 24 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 25 |
| employer
contribution shall be equal to 0.3% of each | 26 |
| teacher's salary.
|
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 2 |
| contribution shall be equal to 0.58% of each teacher's | 3 |
| salary.
| 4 |
| The school district or other employing unit may pay these | 5 |
| employer
contributions out of any source of funding available | 6 |
| for that purpose and
shall forward the contributions to the | 7 |
| System on the schedule established
for the payment of member | 8 |
| contributions.
| 9 |
| These employer contributions are intended to offset a | 10 |
| portion of the cost
to the System of the increases in | 11 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 12 |
| Each employer of teachers is entitled to a credit against | 13 |
| the contributions
required under this subsection (e) with | 14 |
| respect to salaries paid to teachers
for the period January 1, | 15 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 16 |
| employer under subsection (a-5) of Section 6.6 of the State | 17 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 18 |
| paid to teachers for that
period.
| 19 |
| The additional 1% employee contribution required under | 20 |
| Section 16-152 by
this amendatory Act of 1998 is the | 21 |
| responsibility of the teacher and not the
teacher's employer, | 22 |
| unless the employer agrees, through collective bargaining
or | 23 |
| otherwise, to make the contribution on behalf of the teacher.
| 24 |
| If an employer is required by a contract in effect on May | 25 |
| 1, 1998 between the
employer and an employee organization to | 26 |
| pay, on behalf of all its full-time
employees
covered by this |
|
|
|
HB5088 Enrolled |
- 55 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| Article, all mandatory employee contributions required under
| 2 |
| this Article, then the employer shall be excused from paying | 3 |
| the employer
contribution required under this subsection (e) | 4 |
| for the balance of the term
of that contract. The employer and | 5 |
| the employee organization shall jointly
certify to the System | 6 |
| the existence of the contractual requirement, in such
form as | 7 |
| the System may prescribe. This exclusion shall cease upon the
| 8 |
| termination, extension, or renewal of the contract at any time | 9 |
| after May 1,
1998.
| 10 |
| (f) If the amount of a teacher's salary for any school year | 11 |
| used to determine final average salary exceeds the member's | 12 |
| annual full-time salary rate with the same employer for the | 13 |
| previous school year by more than 6%, the teacher's employer | 14 |
| shall pay to the System, in addition to all other payments | 15 |
| required under this Section and in accordance with guidelines | 16 |
| established by the System, the present value of the increase in | 17 |
| benefits resulting from the portion of the increase in salary | 18 |
| that is in excess of 6%. This present value shall be computed | 19 |
| by the System on the basis of the actuarial assumptions and | 20 |
| tables used in the most recent actuarial valuation of the | 21 |
| System that is available at the time of the computation. If a | 22 |
| teacher's salary for the 2005-2006 school year is used to | 23 |
| determine final average salary under this subsection (f), then | 24 |
| the changes made to this subsection (f) by Public Act 94-1057 | 25 |
| shall apply in calculating whether the increase in his or her | 26 |
| salary is in excess of 6%. For the purposes of this Section, |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| change in employment under Section 10-21.12 of the School Code | 2 |
| on or after June 1, 2005 shall constitute a change in employer. | 3 |
| The System may require the employer to provide any pertinent | 4 |
| information or documentation.
The changes made to this | 5 |
| subsection (f) by this amendatory Act of the 94th General | 6 |
| Assembly apply without regard to whether the teacher was in | 7 |
| service on or after its effective date.
| 8 |
| Whenever it determines that a payment is or may be required | 9 |
| under this subsection, the System shall calculate the amount of | 10 |
| the payment and bill the employer for that amount. The bill | 11 |
| shall specify the calculations used to determine the amount | 12 |
| due. If the employer disputes the amount of the bill, it may, | 13 |
| within 30 days after receipt of the bill, apply to the System | 14 |
| in writing for a recalculation. The application must specify in | 15 |
| detail the grounds of the dispute and, if the employer asserts | 16 |
| that the calculation is subject to subsection (g) or (h) of | 17 |
| this Section, must include an affidavit setting forth and | 18 |
| attesting to all facts within the employer's knowledge that are | 19 |
| pertinent to the applicability of that subsection. Upon | 20 |
| receiving a timely application for recalculation, the System | 21 |
| shall review the application and, if appropriate, recalculate | 22 |
| the amount due.
| 23 |
| The employer contributions required under this subsection | 24 |
| (f) 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 |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 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 |
| (g) This subsection (g) applies only to payments made or | 7 |
| salary increases given on or after June 1, 2005 but before July | 8 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 9 |
| require the System to refund any payments received before
July | 10 |
| 31, 2006 (the effective date of Public Act 94-1057). | 11 |
| When assessing payment for any amount due under subsection | 12 |
| (f), the System shall exclude salary increases paid to teachers | 13 |
| under contracts or collective bargaining agreements entered | 14 |
| into, amended, or renewed before June 1, 2005.
| 15 |
| When assessing payment for any amount due under subsection | 16 |
| (f), the System shall exclude salary increases paid to a | 17 |
| teacher at a time when the teacher is 10 or more years from | 18 |
| retirement eligibility under Section 16-132 or 16-133.2.
| 19 |
| When assessing payment for any amount due under subsection | 20 |
| (f), the System shall exclude salary increases resulting from | 21 |
| overload work, including summer school, when the school | 22 |
| district has certified to the System, and the System has | 23 |
| approved the certification, that (i) the overload work is for | 24 |
| the sole purpose of classroom instruction in excess of the | 25 |
| standard number of classes for a full-time teacher in a school | 26 |
| district during a school year and (ii) the salary increases are |
|
|
|
HB5088 Enrolled |
- 58 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| equal to or less than the rate of pay for classroom instruction | 2 |
| computed on the teacher's current salary and work schedule.
| 3 |
| When assessing payment for any amount due under subsection | 4 |
| (f), the System shall exclude a salary increase resulting from | 5 |
| a promotion (i) for which the employee is required to hold a | 6 |
| certificate or supervisory endorsement issued by the State | 7 |
| Teacher Certification Board that is a different certification | 8 |
| or supervisory endorsement than is required for the teacher's | 9 |
| previous position and (ii) to a position that has existed and | 10 |
| been filled by a member for no less than one complete academic | 11 |
| year and the salary increase from the promotion is an increase | 12 |
| that results in an amount no greater than the lesser of the | 13 |
| average salary paid for other similar positions in the district | 14 |
| requiring the same certification or the amount stipulated in | 15 |
| the collective bargaining agreement for a similar position | 16 |
| requiring the same certification.
| 17 |
| When assessing payment for any amount due under subsection | 18 |
| (f), the System shall exclude any payment to the teacher from | 19 |
| the State of Illinois or the State Board of Education over | 20 |
| which the employer does not have discretion, notwithstanding | 21 |
| that the payment is included in the computation of final | 22 |
| average salary.
| 23 |
| (h) When assessing payment for any amount due under | 24 |
| subsection (f), the System shall exclude any salary increase | 25 |
| described in subsection (g) of this Section given on or after | 26 |
| July 1, 2011 but before July 1, 2014 under a contract or |
|
|
|
HB5088 Enrolled |
- 59 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| collective bargaining agreement entered into, amended, or | 2 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 3 |
| Notwithstanding any other provision of this Section, any | 4 |
| payments made or salary increases given after June 30, 2014 | 5 |
| shall be used in assessing payment for any amount due under | 6 |
| subsection (f) of this Section.
| 7 |
| (i) The System shall prepare a report and file copies of | 8 |
| the report with the Governor and the General Assembly by | 9 |
| January 1, 2007 that contains all of the following information: | 10 |
| (1) The number of recalculations required by the | 11 |
| changes made to this Section by Public Act 94-1057 for each | 12 |
| employer. | 13 |
| (2) The dollar amount by which each employer's | 14 |
| contribution to the System was changed due to | 15 |
| recalculations required by Public Act 94-1057. | 16 |
| (3) The total amount the System received from each | 17 |
| employer as a result of the changes made to this Section by | 18 |
| Public Act 94-4. | 19 |
| (4) The increase in the required State contribution | 20 |
| resulting from the changes made to this Section by Public | 21 |
| Act 94-1057.
| 22 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 23 |
| eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07.)
| 24 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 25 |
| Sec. 18-131. Financing; employer contributions.
|
|
|
|
HB5088 Enrolled |
- 60 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| (a) The State of Illinois shall make contributions to this | 2 |
| System by
appropriations of the amounts which, together with | 3 |
| the contributions of
participants, net earnings on | 4 |
| investments, and other income, will meet the
costs of | 5 |
| maintaining and administering this System on a 90% funded basis | 6 |
| in
accordance with actuarial recommendations.
| 7 |
| (b) The Board shall determine the amount of State | 8 |
| contributions
required for each fiscal year on the basis of the | 9 |
| actuarial tables and other
assumptions adopted by the Board and | 10 |
| the prescribed rate of interest, using
the formula in | 11 |
| subsection (c).
| 12 |
| (c) For State fiscal years 2011 through 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.
|
|
|
|
HB5088 Enrolled |
- 61 - |
LRB095 17097 AMC 43150 b |
|
| 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 2010, 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 |
| Beginning in State fiscal year 2046, the minimum State | 14 |
| contribution for
each fiscal year shall be the amount needed to | 15 |
| maintain the total assets of
the System at 90% of the total | 16 |
| actuarial liabilities of the System.
| 17 |
| Amounts received by the System pursuant to Section 25 of | 18 |
| the Budget Stabilization Act or Section 8.12 of the State | 19 |
| Finance Act in any fiscal year do not reduce and do not | 20 |
| constitute payment of any portion of the minimum State | 21 |
| contribution required under this Article in that fiscal year. | 22 |
| Such amounts shall not reduce, and shall not be included in the | 23 |
| calculation of, the required State contributions under this | 24 |
| Article in any future year until the System has reached a | 25 |
| funding ratio of at least 90%. A reference in this Article to | 26 |
| the "required State contribution" or any substantially similar |
|
|
|
HB5088 Enrolled |
- 62 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| term does not include or apply to any amounts payable to the | 2 |
| System under Section 25 of the Budget Stabilization Act.
| 3 |
| Notwithstanding any other provision of this Section, the | 4 |
| required State
contribution for State fiscal year 2005 and for | 5 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 6 |
| under this Section and
certified under Section 18-140, shall | 7 |
| not exceed an amount equal to (i) the
amount of the required | 8 |
| State contribution that would have been calculated under
this | 9 |
| Section for that fiscal year if the System had not received any | 10 |
| payments
under subsection (d) of Section 7.2 of the General | 11 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 12 |
| total debt service payments for that fiscal
year on the bonds | 13 |
| issued for the purposes of that Section 7.2, as determined
and | 14 |
| certified by the Comptroller, that is the same as the System's | 15 |
| portion of
the total moneys distributed under subsection (d) of | 16 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 17 |
| this maximum for State fiscal years 2008 through 2010, however, | 18 |
| the amount referred to in item (i) shall be increased, as a | 19 |
| percentage of the applicable employee payroll, in equal | 20 |
| increments calculated from the sum of the required State | 21 |
| contribution for State fiscal year 2007 plus the applicable | 22 |
| portion of the State's total debt service payments for fiscal | 23 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 24 |
| of the General
Obligation Bond Act, so that, by State fiscal | 25 |
| year 2011, the
State is contributing at the rate otherwise | 26 |
| required under this Section.
|
|
|
|
HB5088 Enrolled |
- 63 - |
LRB095 17097 AMC 43150 b |
|
| 1 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 2 |
| eff. 6-6-06.)
| 3 |
| (40 ILCS 5/22-1004 new)
| 4 |
| Sec. 22-1004. Commission on Government Forecasting and | 5 |
| Accountability report on Articles 3 and 4 funds. Each odd | 6 |
| numbered year, the Commission on Government Forecasting and | 7 |
| Accountability shall analyze data submitted by the Public | 8 |
| Pension Division of the Illinois Department of Financial and | 9 |
| Professional Regulation pertaining to the pension systems | 10 |
| established under Article 3 and Article 4 of this Code. The | 11 |
| Commission shall issue a formal report during such years, the | 12 |
| content of which is, to the extent practicable, to be similar | 13 |
| in nature to that required under Section 22-1003. In addition | 14 |
| to providing aggregate analyses of both systems, the report | 15 |
| shall analyze the fiscal status and provide forecasting | 16 |
| projections for selected individual funds in each system. To | 17 |
| the fullest extent practicable, the report shall analyze | 18 |
| factors that affect each selected individual fund's unfunded | 19 |
| liability and any actuarial gains and losses caused by salary | 20 |
| increases, investment returns, employer contributions, benefit | 21 |
| increases, change in assumptions, the difference in employer | 22 |
| contributions and the normal cost plus interest, and any other | 23 |
| applicable factors. In analyzing net investment returns, the | 24 |
| report shall analyze the assumed investment return compared to | 25 |
| the actual investment return over the preceding 10 fiscal |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| years. The Public Pension Division of the Department of | 2 |
| Financial and Professional Regulation shall provide to the | 3 |
| Commission any assistance that the Commission may request with | 4 |
| respect to its report under this Section. | 5 |
| Section 15. The State Pension Funds Continuing | 6 |
| Appropriation Act is amended by changing Section 1 as follows:
| 7 |
| (40 ILCS 15/1)
| 8 |
| Sec. 1. Appropriations from State Pensions Fund. For the | 9 |
| purpose of making
up any deficiency in the appropriations to | 10 |
| the designated retirement systems
that are required to be made | 11 |
| under Section 8.12 of the State Finance Act, there
is hereby | 12 |
| appropriated, on a continuing annual basis in each fiscal year, | 13 |
| from
the State Pensions Fund to each designated retirement | 14 |
| system, the amount, if
any, by which the total appropriation to | 15 |
| that system from the State Pensions
Fund for that fiscal year | 16 |
| is less than the amount required to be appropriated
to that | 17 |
| retirement system under Section 8.12 of the State Finance Act.
| 18 |
| The annual appropriation under this Section to each | 19 |
| designated retirement
system shall take effect on July 1 for | 20 |
| the State fiscal year beginning on that
date.
| 21 |
| The amount of any continuing appropriation used by a | 22 |
| retirement system
under this Section for a given fiscal year | 23 |
| shall be charged against the
unexpended amount of any | 24 |
| appropriation to that retirement system for
that fiscal year |
|
|
|
HB5088 Enrolled |
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LRB095 17097 AMC 43150 b |
|
| 1 |
| under Section 8.12 of the State Finance Act that subsequently
| 2 |
| becomes available, subject to Section 8.3 of the State Finance | 3 |
| Act.
| 4 |
| "Designated retirement systems" means the State Employees' | 5 |
| Retirement
System of Illinois, the Teachers' Retirement System | 6 |
| of the State of
Illinois, the State Universities Retirement | 7 |
| System, the Judges Retirement
System of Illinois, and the | 8 |
| General Assembly Retirement System.
| 9 |
| The appropriations made in this Section are appropriated to | 10 |
| the designated
retirement systems for the funding of the | 11 |
| unfunded liabilities of the designated retirement systems and | 12 |
| are in addition to, and not in lieu of, any State contributions | 13 |
| required under the Illinois Pension Code. as a part of the | 14 |
| annual State contribution required by the
laws providing for | 15 |
| the funding of those systems.
| 16 |
| (Source: P.A. 93-1067, eff. 1-15-05.)
| 17 |
| Section 20. The Uniform Disposition of Unclaimed Property | 18 |
| Act is amended by changing Section 18 as follows:
| 19 |
| (765 ILCS 1025/18) (from Ch. 141, par. 118)
| 20 |
| Sec. 18. Deposit of funds received under the Act.
| 21 |
| (a) The State Treasurer shall retain all funds received | 22 |
| under this Act,
including the proceeds from
the sale of | 23 |
| abandoned property under Section 17, in a trust fund . The State | 24 |
| Treasurer may deposit any amount in the Trust Fund into the |
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| State Pensions Fund during the fiscal year at his or her | 2 |
| discretion; however, he or she and shall,
on April 15 and | 3 |
| October 15 of each year, deposit any amount in the trust fund
| 4 |
| exceeding $2,500,000 into the State Pensions Fund. All amounts | 5 |
| in excess of $2,500,000 that are deposited into the State | 6 |
| Pension Fund from the unclaimed Property Trust Fund shall be | 7 |
| apportioned to the designated retirement systems as provided in | 8 |
| subsection (c-6) of Section 8.12 of the state Finance Act to | 9 |
| reduce their actuarial reserve deficiencies. He or she shall | 10 |
| make prompt payment of claims he or she
duly allows as provided | 11 |
| for in this Act for the trust fund.
Before making the deposit | 12 |
| the State Treasurer
shall record the name and last known | 13 |
| address of each person appearing from the
holders' reports to | 14 |
| be entitled to the abandoned property. The record shall be
| 15 |
| available for public inspection during reasonable business
| 16 |
| hours.
| 17 |
| (b) Before making any deposit to the credit of the State | 18 |
| Pensions Fund,
the State Treasurer may deduct: (1) any costs in | 19 |
| connection with sale of
abandoned property, (2) any costs of | 20 |
| mailing and publication in connection with
any abandoned | 21 |
| property, and (3) any costs in connection with the maintenance | 22 |
| of
records or disposition of claims made pursuant to this Act. | 23 |
| The State
Treasurer shall semiannually file an itemized report | 24 |
| of all such expenses with
the Legislative Audit Commission.
| 25 |
| (Source: P.A. 93-531, eff. 8-14-03.)
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| Section 90. The State Mandates Act is amended by adding | 2 |
| Section 8.32 as follows: | 3 |
| (30 ILCS 805/8.32 new)
| 4 |
| Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8 | 5 |
| of this Act, no reimbursement by the State is required for the | 6 |
| implementation of any mandate created by this amendatory Act of | 7 |
| the 95th General Assembly.
| 8 |
| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law.
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INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 30 ILCS 105/8.12 | from Ch. 127, par. 144.12 |
| 4 |
| 40 ILCS 5/2-124 |
from Ch. 108 1/2, par. 2-124 |
| 5 |
| 40 ILCS 5/14-131 | from Ch. 108 1/2, par. 14-131 |
| 6 |
| 40 ILCS 5/15-155 |
from Ch. 108 1/2, par. 15-155 |
| 7 |
| 40 ILCS 5/16-158 | from Ch. 108 1/2, par. 16-158 |
| 8 |
| 40 ILCS 5/18-131 |
from Ch. 108 1/2, par. 18-131 |
| 9 |
| 40 ILCS 15/1 |
|
| 10 |
| 765 ILCS 1025/18 |
from Ch. 141, par. 118 |
| |
|