Full Text of HB5572 094th General Assembly
HB5572 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB5572
Introduced 02/06/06, by Rep. James H. Meyer SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/1-124 new |
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40 ILCS 5/2-124 |
from Ch. 108 1/2, par. 2-124 |
40 ILCS 5/2-134 |
from Ch. 108 1/2, par. 2-134 |
40 ILCS 5/14-108.3 |
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40 ILCS 5/14-131 |
from Ch. 108 1/2, par. 14-131 |
40 ILCS 5/14-135.08 |
from Ch. 108 1/2, par. 14-135.08 |
40 ILCS 5/15-155 |
from Ch. 108 1/2, par. 15-155 |
40 ILCS 5/15-165 |
from Ch. 108 1/2, par. 15-165 |
40 ILCS 5/16-158 |
from Ch. 108 1/2, par. 16-158 |
40 ILCS 5/18-131 |
from Ch. 108 1/2, par. 18-131 |
40 ILCS 5/18-140 |
from Ch. 108 1/2, par. 18-140 |
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Amends the Illinois Pension Code. In provisions concerning the 5 State-funded retirement systems, deletes language specifying dollar amounts for the State contribution to each System required for FY 2007 and provides that State contributions to the systems for fiscal years 2007 through 2010 shall be increased in equal annual increments from the required State contributions in State fiscal year 2005 until the State is contributing at a rate that will result in the systems being 90% funded. Changes how certain calculations related to the required State contributions are made. Provides that the Board of Trustees of the retirement systems must re-certify, on or before July 1, 2006, the amount of the required State contribution for FY 2007, taking into account the changes made by this amendatory Act. In the State Employee Article of the Illinois Pension Code, provides that increases as a result of certain early retirement incentives shall not be included in the calculation of the required State contribution under that Article, but shall be appropriated separately. Creates a 4-member task force to study the issue of repayment of that portion of the required State contribution mandated by Public Act 88-593 that was reduced as a result of the passage of Public Act 94-4 and to make recommendations on the development of a way to repay the amount by which the contributions were reduced within a 10-year period. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB5572 |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by by | 5 |
| adding Section 1-124 and by changing Sections 2-124, 2-134, | 6 |
| 14-108.3, 14-131, 14-135.08, 15-155, 15-165, 16-158, 18-131, | 7 |
| and 18-140 as follows:
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| (40 ILCS 5/1-124 new)
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| Sec. 1-124. Task force concerning Fiscal Year 2006 pension | 10 |
| payment. There is created a 4-member task force, with one | 11 |
| member appointed by each of the 4 legislative leaders and | 12 |
| staffed by the Commission on Government Forecasting and | 13 |
| Accountability, to study the issue of repayment of that portion | 14 |
| of the required State contribution mandated by Public Act | 15 |
| 88-593 that was reduced as a result of the passage of Public | 16 |
| Act 94-4 and to make recommendations on the development of a | 17 |
| way to repay the amount by which the contributions were reduced | 18 |
| within a 10-year period. The task force must report its | 19 |
| findings and recommendations to the General Assembly on or | 20 |
| before January 1, 2007.
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| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| Sec. 2-124. Contributions by State.
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| (a) The State shall make contributions to the System by
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| appropriations of amounts which, together with the | 25 |
| contributions of
participants, interest earned on investments, | 26 |
| and other income
will meet the cost of maintaining and | 27 |
| administering the System on a 90%
funded basis in accordance | 28 |
| with actuarial recommendations.
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| (b) The Board shall determine the amount of State
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| contributions required for each fiscal year on the basis of the
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| actuarial tables and other assumptions adopted by the Board and |
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| the
prescribed rate of interest, using the formula in | 2 |
| subsection (c).
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| (c) For State fiscal years 2011 through 2045, the minimum | 4 |
| contribution
to the System to be made by the State for each | 5 |
| fiscal year shall be an amount
determined by the System to be | 6 |
| sufficient to bring the total assets of the
System up to 90% of | 7 |
| the total actuarial liabilities of the System by the end of
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| State fiscal year 2045. In making these determinations, the | 9 |
| required State
contribution shall be calculated each year as a | 10 |
| level percentage of payroll
over the years remaining to and | 11 |
| including fiscal year 2045 and shall be
determined under the | 12 |
| projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State | 14 |
| contribution to
the System, as a percentage of the applicable | 15 |
| employee payroll, shall be
increased in equal annual increments | 16 |
| so that by State fiscal year 2011, the
State is contributing at | 17 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 19 |
| total required State
contribution for State fiscal year 2006 is | 20 |
| $4,157,000.
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| Notwithstanding any other provision of this Article, the | 22 |
| total required State
contribution for State fiscal year 2007 is | 23 |
| $5,220,300.
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| For each of State fiscal years 2007
2008 through 2010, the | 25 |
| State contribution to
the System, as a percentage of the | 26 |
| applicable employee payroll, shall be
increased in equal annual | 27 |
| increments from the required State contribution for State | 28 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
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| State is contributing at the rate otherwise required under this | 30 |
| Section.
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| Beginning in State fiscal year 2046, the minimum State | 32 |
| contribution for
each fiscal year shall be the amount needed to | 33 |
| maintain the total assets of
the System at 90% of the total | 34 |
| actuarial liabilities of the System.
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| Notwithstanding any other provision of this Section, the | 36 |
| required State
contribution for State fiscal year 2005 and for |
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| fiscal year 2007
2008 and each fiscal year thereafter, as
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| calculated under this Section and
certified under Section | 3 |
| 2-134, shall not exceed an amount equal to (i) the
amount of | 4 |
| the required State contribution that would have been calculated | 5 |
| under
this Section for that fiscal year if the System had not | 6 |
| received any payments
under subsection (d) of Section 7.2 of | 7 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 8 |
| State's total debt service payments for that fiscal
year on the | 9 |
| bonds issued for the purposes of that Section 7.2, as | 10 |
| determined
and certified by the Comptroller, that is the same | 11 |
| as the System's portion of
the total moneys distributed under | 12 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 13 |
| Act. In determining this maximum for State fiscal years 2008 | 14 |
| through 2010, however, the amount referred to in item (i) shall | 15 |
| be increased, as a percentage of the applicable employee | 16 |
| payroll, in equal increments calculated from the sum of the | 17 |
| required State contribution for State fiscal year 2007 plus the | 18 |
| applicable portion of the State's total debt service payments | 19 |
| for fiscal year 2007 on the bonds issued for the purposes of | 20 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 21 |
| State fiscal year 2011, the
State is contributing at the rate | 22 |
| otherwise required under this Section.
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| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
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| (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
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| Sec. 2-134. To certify required State contributions and | 26 |
| submit vouchers.
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| (a) The Board shall certify to the Governor on or before | 28 |
| December 15 of each
year the amount of the required State | 29 |
| contribution to the System for the next
fiscal year. The | 30 |
| certification shall include a copy of the actuarial
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| recommendations upon which it is based.
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| On or before May 1, 2004, the Board shall recalculate and | 33 |
| recertify to
the Governor the amount of the required State | 34 |
| contribution to the System for
State fiscal year 2005, taking | 35 |
| into account the amounts appropriated to and
received by the |
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| System under subsection (d) of Section 7.2 of the General
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| Obligation Bond Act.
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| On or before July 1, 2005, the Board shall recalculate and | 4 |
| recertify
to the Governor the amount of the required State
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| contribution to the System for State fiscal year 2006, taking | 6 |
| into account the changes in required State contributions made | 7 |
| by Public Act 94-4
this amendatory Act of the 94th General | 8 |
| Assembly .
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| On or before July 1, 2006, the Board shall recalculate and | 10 |
| recertify
to the Governor the amount of the required State
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| contribution to the System for State fiscal year 2007, taking | 12 |
| into account the changes in required State contributions made | 13 |
| by this amendatory Act of the 94th General Assembly.
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| (b) Beginning in State fiscal year 1996, on or as soon as | 15 |
| possible after the
15th day of each month the Board shall | 16 |
| submit vouchers for payment of State
contributions to the | 17 |
| System, in a total monthly amount of one-twelfth of the
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| required annual State contribution certified under subsection | 19 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 20 |
| General Assembly through June 30, 2004, the Board shall not
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| submit vouchers for the remainder of fiscal year 2004 in excess | 22 |
| 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 (d) 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 | 27 |
| funds appropriated to the System for that fiscal year. If in | 28 |
| any month
the amount remaining unexpended from all other | 29 |
| appropriations to the System for
the applicable fiscal year | 30 |
| (including the appropriations to the System under
Section 8.12 | 31 |
| of the State Finance Act and Section 1 of the State Pension | 32 |
| Funds
Continuing Appropriation Act) is less than the amount | 33 |
| lawfully vouchered under
this Section, the difference shall be | 34 |
| paid from the General Revenue Fund under
the continuing | 35 |
| appropriation authority provided in Section 1.1 of the State
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| Pension Funds Continuing Appropriation Act.
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| (c) The full amount of any annual appropriation for the | 2 |
| System for
State fiscal year 1995 shall be transferred and made | 3 |
| available to the System
at the beginning of that fiscal year at | 4 |
| the request of the Board.
Any excess funds remaining at the end | 5 |
| of any fiscal year from appropriations
shall be retained by the | 6 |
| System as a general reserve to meet the System's
accrued | 7 |
| liabilities.
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| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 9 |
| eff. 6-1-05; 94-536, eff. 8-10-05; revised 8-19-05.)
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| (40 ILCS 5/14-108.3)
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| Sec. 14-108.3. Early retirement incentives.
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| (a) To be eligible for the benefits provided in this | 13 |
| Section, a person
must:
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| (1) be a member of this System who, on any day during | 15 |
| June, 2002, is
(i) in active payroll status in a position | 16 |
| of employment with a department
and an active contributor | 17 |
| to this System with respect to that employment,
and | 18 |
| terminates that employment before the retirement annuity | 19 |
| under this
Article begins, or (ii) on layoff status from | 20 |
| such a position with a right of
re-employment or recall to | 21 |
| service, or (iii) receiving benefits under Section
14-123, | 22 |
| 14-123.1 or 14-124, but only if the member has not been | 23 |
| receiving
those benefits for a continuous period of more | 24 |
| than 2 years as of the date
of application;
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| (2) not have received any retirement annuity under this | 26 |
| Article
beginning earlier than August 1, 2002;
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| (3) file with the Board on or before December 31, 2002 | 28 |
| a written
application requesting the benefits provided in | 29 |
| this Section;
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| (4) terminate employment under this Article no later | 31 |
| than December 31,
2002 (or the date established under | 32 |
| subsection (d), if applicable);
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| (5) by the date of termination of service, have at | 34 |
| least 8 years of
creditable service under this Article, | 35 |
| without the use of any creditable
service established under |
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| this Section;
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| (6) by the date of termination of service, have at | 3 |
| least 5 years
of membership service earned while an | 4 |
| employee under this Article, which may
include military | 5 |
| service for which credit is established under Section
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| 14-105(b), service during the qualifying period for which | 7 |
| credit is
established under Section 14-104(a), and service | 8 |
| for which credit has been
established by repaying a refund | 9 |
| under Section 14-130, but shall not include
service for | 10 |
| which any other optional service credit has been | 11 |
| established; and
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| (7) not receive any early retirement benefit under | 13 |
| Section 16-133.3 of
this Code.
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| (b)
An eligible person may establish up to 5 years of | 15 |
| creditable service
under this Article, in increments of one | 16 |
| month, by making the contributions
specified in subsection (c). | 17 |
| In addition, for each month of creditable
service established | 18 |
| under this Section, a person's age at retirement shall
be | 19 |
| deemed to be one month older than it actually is.
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| The creditable service established under this Section may | 21 |
| be used for
all purposes under this Article and the Retirement | 22 |
| Systems Reciprocal Act,
except for the computation of final | 23 |
| average compensation under Section
14-103.12 or the | 24 |
| determination of compensation under this or any other
Article | 25 |
| of this Code.
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| The age enhancement established under this Section may not | 27 |
| be used to
enable any person to begin receiving a retirement | 28 |
| annuity calculated under
Section 14-110 before actually | 29 |
| attaining age 50 (without any age enhancement
under this | 30 |
| Section). The age enhancement established under this Section | 31 |
| may
be used for all other purposes under this Article | 32 |
| (including calculation of
a proportionate annuity payable by | 33 |
| this System under the Retirement Systems
Reciprocal Act), | 34 |
| except for purposes of the level income option in Section
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| 14-112, the reversionary annuity under Section 14-113, and the | 36 |
| required
distributions under Section 14-121.1.
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| The age enhancement established under this Section may be | 2 |
| used in
determining benefits payable under Article 16 of this | 3 |
| Code under the
Retirement Systems Reciprocal Act, if the person | 4 |
| has at least 5 years of
service credit in the Article 16 system | 5 |
| that was earned while participating
in that system as a teacher | 6 |
| (as defined in Section 16-106) employed by a
department (as | 7 |
| defined in Section 14-103.04).
Age enhancement established | 8 |
| under this Section shall not otherwise be used
in determining | 9 |
| benefits payable under other Articles of this Code under the
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| Retirement Systems Reciprocal Act.
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| (c) For all creditable service established under this | 12 |
| Section, a person
must pay to the System an employee | 13 |
| contribution to be determined by the
System, based on the | 14 |
| member's rate of compensation on June 1, 2002 (or
the last date | 15 |
| before June 1, 2002 for which a rate can be determined) and
the | 16 |
| retirement contribution rate in effect on June 1, 2002 for the | 17 |
| member
(or for members with the same social security and | 18 |
| alternative formula status
as the member).
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| If the member receives a lump sum payment for accumulated | 20 |
| vacation, sick
leave and personal leave upon withdrawal from | 21 |
| service, and the net amount of
that lump sum payment is at | 22 |
| least as great as the amount of the contribution
required under | 23 |
| this Section, the entire contribution must be paid by the
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| employee by payroll deduction. If there is no such lump sum | 25 |
| payment, or if
it is less than the contribution required under | 26 |
| this Section, the member shall
make an initial payment by | 27 |
| payroll deduction, equal to the net amount of the
lump sum | 28 |
| payment for accumulated vacation, sick leave, and personal | 29 |
| leave,
and have the remaining amount due treated as a reduction | 30 |
| from the retirement
annuity in 24 equal monthly installments | 31 |
| beginning in the month in which the
retirement annuity takes | 32 |
| effect. The required contribution may be paid as a
pre-tax | 33 |
| deduction from earnings. For federal and Illinois tax purposes, | 34 |
| the
monthly amount by which the annuitant's benefit is reduced | 35 |
| shall not be
treated as a contribution by the annuitant, but | 36 |
| rather as a reduction of the
annuitant's monthly benefit.
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| (c-5) The reduction in retirement annuity provided in | 2 |
| subsection (c) of
Section 14-108 does not apply to the annuity | 3 |
| of a person who retires under this
Section. A person who has | 4 |
| received any age enhancement or creditable service
under this | 5 |
| Section may begin to receive an unreduced retirement annuity | 6 |
| upon
attainment of age 55 with at least 25 years of creditable | 7 |
| service (including
any age enhancement and creditable service | 8 |
| established under this Section).
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| (d) In order to ensure that the efficient operation of | 10 |
| State government
is not jeopardized by the simultaneous | 11 |
| retirement of large numbers of key
personnel, the director or | 12 |
| other head of a department may, for key employees
of that | 13 |
| department, extend the December 31, 2002 deadline for | 14 |
| terminating
employment under this Article established in | 15 |
| subdivision (a)(4) of this
Section to a date not later than | 16 |
| April 30, 2003 by so notifying the System
in writing by | 17 |
| December 31, 2002.
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| (e) Notwithstanding Section 14-111, a person who has | 19 |
| received any
age enhancement or creditable service under this | 20 |
| Section and who reenters
service under this Article (or as an | 21 |
| employee of a department under Article
16) other than as a | 22 |
| temporary employee thereby forfeits that age enhancement
and | 23 |
| creditable service and is entitled to a refund of the | 24 |
| contributions
made pursuant to this Section.
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| (f) The System shall determine the amount of the increase | 26 |
| in the present value of future benefits resulting from the | 27 |
| granting of early retirement incentives
under this Section and | 28 |
| shall report that amount to the Governor and the Commission on | 29 |
| Government Forecasting and Accountability
on or after the | 30 |
| effective date of this amendatory Act of the 93rd General | 31 |
| Assembly and on or before November 15,
2004. Except in State | 32 |
| fiscal year 2006
Beginning with State fiscal year 2008 , the | 33 |
| increase
reported under this subsection (f) shall not be | 34 |
| included in the
calculation of the required State contribution | 35 |
| under Section 14-131.
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| (g) In addition to the contributions otherwise required |
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| under this Article,
the State shall appropriate and pay to the | 2 |
| System (i) an amount equal to
$70,000,000 in State fiscal years | 3 |
| 2004 and 2005 and (2) in each of State fiscal years 2007 | 4 |
| through 2015, a level dollar payment based upon the increase in | 5 |
| the percent value of future benefits provided by the early | 6 |
| retirement incentives provided under this Section amortized at | 7 |
| 8.5% interest .
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| (h) The Commission on Government Forecasting and | 9 |
| Accountability (i) shall hold one or more hearings on or before | 10 |
| the last session day during the fall veto session of 2004 to | 11 |
| review recommendations relating to funding of early retirement | 12 |
| incentives under this Section and (ii) shall file its report | 13 |
| with the General Assembly on or before December 31, 2004 making | 14 |
| its recommendations relating to funding of early retirement | 15 |
| incentives under this Section; the Commission's report may | 16 |
| contain both majority recommendations and minority | 17 |
| recommendations. The System shall recalculate and recertify to | 18 |
| the Governor by January 31, 2005 the amount of the required | 19 |
| State contribution to the System for State fiscal year 2005 | 20 |
| with respect to those incentives. The Pension Laws Commission | 21 |
| (or its successor, the
Commission on Government Forecasting and | 22 |
| Accountability) shall determine
and report to the General
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| Assembly, on or before January 1, 2004 and annually thereafter | 24 |
| through the year
2013, its estimate of (1) the annual amount of | 25 |
| payroll savings likely to be
realized by the State as a result | 26 |
| of the early retirement of persons receiving
early retirement | 27 |
| incentives under this Section and (2) the net annual savings
or | 28 |
| cost to the State from the program of early retirement | 29 |
| incentives created
under this Section.
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| The System, the Department of Central Management Services, | 31 |
| the
Governor's Office of Management and Budget (formerly
Bureau | 32 |
| of
the Budget), and all other departments shall provide to the | 33 |
| Commission any
assistance that the Commission may request with | 34 |
| respect to its reports under
this Section. The Commission may | 35 |
| require departments to provide it with any
information that it | 36 |
| deems necessary or useful with respect to its reports under
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| this Section, including without limitation information about | 2 |
| (1) the final
earnings of former department employees who | 3 |
| elected to receive benefits under
this Section, (2) the | 4 |
| earnings of current department employees holding the
positions | 5 |
| vacated by persons who elected to receive benefits under this
| 6 |
| Section, and (3) positions vacated by persons who elected to | 7 |
| receive benefits
under this Section that have not yet been | 8 |
| refilled.
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| (i) The changes made to this Section by this amendatory Act | 10 |
| of the 92nd
General Assembly do not apply to persons who | 11 |
| retired under this Section on or
before May 1, 1992.
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| (Source: P.A. 93-632, eff. 2-1-04; 93-839, eff. 7-30-04; | 13 |
| 93-1067, eff. 1-15-05; 94-4, eff. 6-1-05.)
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| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 15 |
| Sec. 14-131. Contributions by State.
| 16 |
| (a) The State shall make contributions to the System by | 17 |
| appropriations of
amounts which, together with other employer | 18 |
| contributions from trust, federal,
and other funds, employee | 19 |
| contributions, investment income, and other income,
will be | 20 |
| sufficient to meet the cost of maintaining and administering | 21 |
| the System
on a 90% funded basis in accordance with actuarial | 22 |
| recommendations.
| 23 |
| For the purposes of this Section and Section 14-135.08, | 24 |
| references to State
contributions refer only to employer | 25 |
| contributions and do not include employee
contributions that | 26 |
| are picked up or otherwise paid by the State or a
department on | 27 |
| behalf of the employee.
| 28 |
| (b) The Board shall determine the total amount of State | 29 |
| contributions
required for each fiscal year on the basis of the | 30 |
| actuarial tables and other
assumptions adopted by the Board, | 31 |
| using the formula in subsection (e).
| 32 |
| The Board shall also determine a State contribution rate | 33 |
| for each fiscal
year, expressed as a percentage of payroll, | 34 |
| based on the total required State
contribution for that fiscal | 35 |
| year (less the amount received by the System from
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| appropriations under Section 8.12 of the State Finance Act and | 2 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 3 |
| Act, if any, for the fiscal year
ending on the June 30 | 4 |
| immediately preceding the applicable November 15
certification | 5 |
| deadline), the estimated payroll (including all forms of
| 6 |
| compensation) for personal services rendered by eligible | 7 |
| employees, and the
recommendations of the actuary.
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| For the purposes of this Section and Section 14.1 of the | 9 |
| State Finance Act,
the term "eligible employees" includes | 10 |
| employees who participate in the System,
persons who may elect | 11 |
| to participate in the System but have not so elected,
persons | 12 |
| who are serving a qualifying period that is required for | 13 |
| participation,
and annuitants employed by a department as | 14 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 15 |
| (c) Contributions shall be made by the several departments | 16 |
| for each pay
period by warrants drawn by the State Comptroller | 17 |
| against their respective
funds or appropriations based upon | 18 |
| vouchers stating the amount to be so
contributed. These amounts | 19 |
| shall be based on the full rate certified by the
Board under | 20 |
| Section 14-135.08 for that fiscal year.
From the effective date | 21 |
| of this amendatory Act of the 93rd General
Assembly through the | 22 |
| payment of the final payroll from fiscal year 2004
| 23 |
| appropriations, the several departments shall not make | 24 |
| contributions
for the remainder of fiscal year 2004 but shall | 25 |
| instead make payments
as required under subsection (a-1) of | 26 |
| Section 14.1 of the State Finance Act.
The several departments | 27 |
| shall resume those contributions at the commencement of
fiscal | 28 |
| year 2005.
| 29 |
| (d) If an employee is paid from trust funds or federal | 30 |
| funds, the
department or other employer shall pay employer | 31 |
| contributions from those funds
to the System at the certified | 32 |
| rate, unless the terms of the trust or the
federal-State | 33 |
| agreement preclude the use of the funds for that purpose, in
| 34 |
| which case the required employer contributions shall be paid by | 35 |
| the State.
From the effective date of this amendatory
Act of | 36 |
| the 93rd General Assembly through the payment of the final
|
|
|
|
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|
| 1 |
| payroll from fiscal year 2004 appropriations, the department or | 2 |
| other
employer shall not pay contributions for the remainder of | 3 |
| fiscal year
2004 but shall instead make payments as required | 4 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 5 |
| Act. The department or other employer shall
resume payment of
| 6 |
| contributions at the commencement of fiscal year 2005.
| 7 |
| (e) For State fiscal years 2011 through 2045, the minimum | 8 |
| contribution
to the System to be made by the State for each | 9 |
| fiscal year shall be an amount
determined by the System to be | 10 |
| sufficient to bring the total assets of the
System up to 90% of | 11 |
| the total actuarial liabilities of the System by the end
of | 12 |
| State fiscal year 2045. In making these determinations, the | 13 |
| required State
contribution shall be calculated each year as a | 14 |
| level percentage of payroll
over the years remaining to and | 15 |
| including fiscal year 2045 and shall be
determined under the | 16 |
| projected unit credit actuarial cost method.
| 17 |
| For State fiscal years 1996 through 2005, the State | 18 |
| contribution to
the System, as a percentage of the applicable | 19 |
| employee payroll, shall be
increased in equal annual increments | 20 |
| so that by State fiscal year 2011, the
State is contributing at | 21 |
| the rate required under this Section; except that
(i) for State | 22 |
| fiscal year 1998, for all purposes of this Code and any other
| 23 |
| law of this State, the certified percentage of the applicable | 24 |
| employee payroll
shall be 5.052% for employees earning eligible | 25 |
| creditable service under Section
14-110 and 6.500% for all | 26 |
| other employees, notwithstanding any contrary
certification | 27 |
| made under Section 14-135.08 before the effective date of this
| 28 |
| amendatory Act of 1997, and (ii)
in the following specified | 29 |
| State fiscal years, the State contribution to
the System shall | 30 |
| not be less than the following indicated percentages of the
| 31 |
| applicable employee payroll, even if the indicated percentage | 32 |
| will produce a
State contribution in excess of the amount | 33 |
| otherwise required under this
subsection and subsection (a):
| 34 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 35 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 36 |
| Notwithstanding any other provision of this Article, the |
|
|
|
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|
| 1 |
| total required State
contribution to the System for State | 2 |
| fiscal year 2006 is $203,783,900.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution to the System for State | 5 |
| fiscal year 2007 is $344,164,400.
| 6 |
| For each of State fiscal years 2007
2008 through 2010, the | 7 |
| State contribution to
the System, as a percentage of the | 8 |
| applicable employee payroll, shall be
increased in equal annual | 9 |
| increments from the required State contribution for State | 10 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 11 |
| State is contributing at the rate otherwise required under this | 12 |
| 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 |
| Notwithstanding any other provision of this Section, the | 18 |
| required State
contribution for State fiscal year 2005 and for | 19 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 20 |
| calculated under this Section and
certified under Section | 21 |
| 14-135.08, shall not exceed an amount equal to (i) the
amount | 22 |
| of the required State contribution that would have been | 23 |
| calculated under
this Section for that fiscal year if the | 24 |
| System had not received any payments
under subsection (d) of | 25 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 26 |
| portion of the State's total debt service payments for that | 27 |
| fiscal
year on the bonds issued for the purposes of that | 28 |
| Section 7.2, as determined
and certified by the Comptroller, | 29 |
| that is the same as the System's portion of
the total moneys | 30 |
| distributed under subsection (d) of Section 7.2 of the General
| 31 |
| Obligation Bond Act. In determining this maximum for State | 32 |
| fiscal years 2008 through 2010, however, the amount referred to | 33 |
| in item (i) shall be increased, as a percentage of the | 34 |
| applicable employee payroll, in equal increments calculated | 35 |
| from the sum of the required State contribution for State | 36 |
| fiscal year 2007 plus the applicable portion of the State's |
|
|
|
HB5572 |
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|
| 1 |
| total debt service payments for fiscal year 2007 on the bonds | 2 |
| issued for the purposes of Section 7.2 of the General
| 3 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
| 4 |
| State is contributing at the rate otherwise required under this | 5 |
| Section.
| 6 |
| (f) After the submission of all payments for eligible | 7 |
| employees
from personal services line items in fiscal year 2004 | 8 |
| have been made,
the Comptroller shall provide to the System a | 9 |
| certification of the sum
of all fiscal year 2004 expenditures | 10 |
| for personal services that would
have been covered by payments | 11 |
| to the System under this Section if the
provisions of this | 12 |
| amendatory Act of the 93rd General Assembly had not been
| 13 |
| enacted. Upon
receipt of the certification, the System shall | 14 |
| determine the amount
due to the System based on the full rate | 15 |
| certified by the Board under
Section 14-135.08 for fiscal year | 16 |
| 2004 in order to meet the State's
obligation under this | 17 |
| Section. The System shall compare this amount
due to the amount | 18 |
| received by the System in fiscal year 2004 through
payments | 19 |
| under this Section and under Section 6z-61 of the State Finance | 20 |
| Act.
If the amount
due is more than the amount received, the | 21 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 22 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 23 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 24 |
| Continuing Appropriation Act. If the amount due is less than | 25 |
| the
amount received, the
difference shall be termed the "Fiscal | 26 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 27 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 28 |
| the Pension Contribution Fund as soon as practicable
after the | 29 |
| certification.
| 30 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 31 |
| eff. 6-1-05.)
| 32 |
| (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 33 |
| Sec. 14-135.08. To certify required State contributions. | 34 |
| (a)
To certify to the Governor and to each department, on | 35 |
| or before
November 15 of each year, the required rate for State |
|
|
|
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|
| 1 |
| contributions to the
System for the next State fiscal year, as | 2 |
| determined under subsection (b) of
Section 14-131. The | 3 |
| certification to the Governor shall include a copy of the
| 4 |
| actuarial recommendations upon which the rate is based.
| 5 |
| (b) The certification shall include an additional amount | 6 |
| necessary to pay all principal of and interest on those general | 7 |
| obligation bonds due the next fiscal year authorized by Section | 8 |
| 7.2(a) of the General Obligation Bond Act and issued to provide | 9 |
| the proceeds deposited by the State with the System in July | 10 |
| 2003, representing deposits other than amounts reserved under | 11 |
| Section 7.2(c) of the General Obligation Bond Act. For State | 12 |
| fiscal year 2005, the Board shall make a supplemental | 13 |
| certification of the additional amount necessary to pay all | 14 |
| principal of and interest on those general obligation bonds due | 15 |
| in State fiscal years 2004 and 2005 authorized by Section | 16 |
| 7.2(a) of the General Obligation Bond Act and issued to provide | 17 |
| the proceeds deposited by the State with the System in July | 18 |
| 2003, representing deposits other than amounts reserved under | 19 |
| Section 7.2(c) of the General Obligation Bond Act, as soon as | 20 |
| practical after the effective date of this amendatory Act of | 21 |
| the 93rd General Assembly.
| 22 |
| On or before May 1, 2004, the Board shall recalculate and | 23 |
| recertify
to the Governor and to each department the amount of | 24 |
| the required State
contribution to the System and the required | 25 |
| rates for State contributions
to the System for State fiscal | 26 |
| year 2005, taking into account the amounts
appropriated to and | 27 |
| received by the System under subsection (d) of Section
7.2 of | 28 |
| the General Obligation Bond Act.
| 29 |
| On or before July 1, 2005, the Board shall recalculate and | 30 |
| recertify
to the Governor and to each department the amount of | 31 |
| the required State
contribution to the System and the required | 32 |
| rates for State contributions
to the System for State fiscal | 33 |
| year 2006, taking into account the changes in required State | 34 |
| contributions made by Public Act 94-4
this amendatory Act of | 35 |
| the 94th General Assembly .
| 36 |
| On or before July 1, 2006, the Board shall recalculate and |
|
|
|
HB5572 |
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|
| 1 |
| recertify
to the Governor and to each department the amount of | 2 |
| the required State
contribution to the System and the required | 3 |
| rates for State contributions
to the System for State fiscal | 4 |
| year 2007, taking into account the changes in required State | 5 |
| contributions made by this amendatory Act of the 94th General | 6 |
| Assembly.
| 7 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4, | 8 |
| eff. 6-1-05.)
| 9 |
| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 10 |
| Sec. 15-155. Employer contributions.
| 11 |
| (a) The State of Illinois shall make contributions by | 12 |
| appropriations of
amounts which, together with the other | 13 |
| employer contributions from trust,
federal, and other funds, | 14 |
| employee contributions, income from investments,
and other | 15 |
| income of this System, will be sufficient to meet the cost of
| 16 |
| maintaining and administering the System on a 90% funded basis | 17 |
| in accordance
with actuarial recommendations.
| 18 |
| The Board shall determine the amount of State contributions | 19 |
| required for
each fiscal year on the basis of the actuarial | 20 |
| tables and other assumptions
adopted by the Board and the | 21 |
| recommendations of the actuary, using the formula
in subsection | 22 |
| (a-1).
| 23 |
| (a-1) For State fiscal years 2011 through 2045, the minimum | 24 |
| contribution
to the System to be made by the State for each | 25 |
| fiscal year shall be an amount
determined by the System to be | 26 |
| sufficient to bring the total assets of the
System up to 90% of | 27 |
| the total actuarial liabilities of the System by the end of
| 28 |
| State fiscal year 2045. In making these determinations, the | 29 |
| required State
contribution shall be calculated each year as a | 30 |
| level percentage of payroll
over the years remaining to and | 31 |
| including fiscal year 2045 and shall be
determined under the | 32 |
| projected unit credit actuarial cost method.
| 33 |
| For State fiscal years 1996 through 2005, the State | 34 |
| contribution to
the System, as a percentage of the applicable | 35 |
| employee payroll, shall be
increased in equal annual increments |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| so that by State fiscal year 2011, the
State is contributing at | 2 |
| the rate required under this Section.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2006 is | 5 |
| $166,641,900.
| 6 |
| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution for State fiscal year 2007 is | 8 |
| $252,064,100.
| 9 |
| For each of State fiscal years 2007
2008 through 2010, the | 10 |
| State contribution to
the System, as a percentage of the | 11 |
| applicable employee payroll, shall be
increased in equal annual | 12 |
| increments from the required State contribution for State | 13 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 14 |
| State is contributing at the rate otherwise required under this | 15 |
| Section.
| 16 |
| Beginning in State fiscal year 2046, the minimum State | 17 |
| contribution for
each fiscal year shall be the amount needed to | 18 |
| maintain the total assets of
the System at 90% of the total | 19 |
| actuarial liabilities of the System.
| 20 |
| Notwithstanding any other provision of this Section, the | 21 |
| required State
contribution for State fiscal year 2005 and for | 22 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 23 |
| calculated under this Section and
certified under Section | 24 |
| 15-165, shall not exceed an amount equal to (i) the
amount of | 25 |
| the required State contribution that would have been calculated | 26 |
| under
this Section for that fiscal year if the System had not | 27 |
| received any payments
under subsection (d) of Section 7.2 of | 28 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 29 |
| State's total debt service payments for that fiscal
year on the | 30 |
| bonds issued for the purposes of that Section 7.2, as | 31 |
| determined
and certified by the Comptroller, that is the same | 32 |
| as the System's portion of
the total moneys distributed under | 33 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 34 |
| Act. In determining this maximum for State fiscal years 2008 | 35 |
| through 2010, however, the amount referred to in item (i) shall | 36 |
| be increased, as a percentage of the applicable employee |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| payroll, in equal increments calculated from the sum of the | 2 |
| required State contribution for State fiscal year 2007 plus the | 3 |
| applicable portion of the State's total debt service payments | 4 |
| for fiscal year 2007 on the bonds issued for the purposes of | 5 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 6 |
| State fiscal year 2011, the
State is contributing at the rate | 7 |
| otherwise required under this Section.
| 8 |
| (b) If an employee is paid from trust or federal funds, the | 9 |
| employer
shall pay to the Board contributions from those funds | 10 |
| which are
sufficient to cover the accruing normal costs on | 11 |
| behalf of the employee.
However, universities having employees | 12 |
| who are compensated out of local
auxiliary funds, income funds, | 13 |
| or service enterprise funds are not required
to pay such | 14 |
| contributions on behalf of those employees. The local auxiliary
| 15 |
| funds, income funds, and service enterprise funds of | 16 |
| universities shall not be
considered trust funds for the | 17 |
| purpose of this Article, but funds of alumni
associations, | 18 |
| foundations, and athletic associations which are affiliated | 19 |
| with
the universities included as employers under this Article | 20 |
| and other employers
which do not receive State appropriations | 21 |
| are considered to be trust funds for
the purpose of this | 22 |
| Article.
| 23 |
| (b-1) The City of Urbana and the City of Champaign shall | 24 |
| each make
employer contributions to this System for their | 25 |
| respective firefighter
employees who participate in this | 26 |
| System pursuant to subsection (h) of Section
15-107. The rate | 27 |
| of contributions to be made by those municipalities shall
be | 28 |
| determined annually by the Board on the basis of the actuarial | 29 |
| assumptions
adopted by the Board and the recommendations of the | 30 |
| actuary, and shall be
expressed as a percentage of salary for | 31 |
| each such employee. The Board shall
certify the rate to the | 32 |
| affected municipalities as soon as may be practical.
The | 33 |
| employer contributions required under this subsection shall be | 34 |
| remitted by
the municipality to the System at the same time and | 35 |
| in the same manner as
employee contributions.
| 36 |
| (c) Through State fiscal year 1995: The total employer |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| contribution shall
be apportioned among the various funds of | 2 |
| the State and other employers,
whether trust, federal, or other | 3 |
| funds, in accordance with actuarial procedures
approved by the | 4 |
| Board. State of Illinois contributions for employers receiving
| 5 |
| State appropriations for personal services shall be payable | 6 |
| from appropriations
made to the employers or to the System. The | 7 |
| contributions for Class I
community colleges covering earnings | 8 |
| other than those paid from trust and
federal funds, shall be | 9 |
| payable solely from appropriations to the Illinois
Community | 10 |
| College Board or the System for employer contributions.
| 11 |
| (d) Beginning in State fiscal year 1996, the required State | 12 |
| contributions
to the System shall be appropriated directly to | 13 |
| the System and shall be payable
through vouchers issued in | 14 |
| accordance with subsection (c) of Section 15-165, except as | 15 |
| provided in subsection (g).
| 16 |
| (e) The State Comptroller shall draw warrants payable to | 17 |
| the System upon
proper certification by the System or by the | 18 |
| employer in accordance with the
appropriation laws and this | 19 |
| Code.
| 20 |
| (f) Normal costs under this Section means liability for
| 21 |
| pensions and other benefits which accrues to the System because | 22 |
| of the
credits earned for service rendered by the participants | 23 |
| during the
fiscal year and expenses of administering the | 24 |
| System, but shall not
include the principal of or any | 25 |
| redemption premium or interest on any bonds
issued by the Board | 26 |
| or any expenses incurred or deposits required in
connection | 27 |
| therewith.
| 28 |
| (g) If the amount of a participant's earnings for any | 29 |
| academic year used to determine the final rate of earnings | 30 |
| exceeds the amount of his or her earnings with the same | 31 |
| employer for the previous academic year by more than 6%, the | 32 |
| participant's employer shall pay to the System, in addition to | 33 |
| all other payments required under this Section and in | 34 |
| accordance with guidelines established by the System, the | 35 |
| present value of the increase in benefits resulting from the | 36 |
| portion of the increase in earnings that is in excess of 6%. |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| This present value shall be computed by the System on the basis | 2 |
| of the actuarial assumptions and tables used in the most recent | 3 |
| actuarial valuation of the System that is available at the time | 4 |
| of the computation. The employer contributions required under | 5 |
| this subsection (g) shall be paid in the form of a lump sum | 6 |
| within 30 days after receipt of the bill after the participant | 7 |
| begins receiving benefits under this Article.
| 8 |
| The provisions of this subsection (g) do not apply to | 9 |
| earnings increases paid to participants under contracts or | 10 |
| collective bargaining agreements entered into, amended, or | 11 |
| renewed before the effective date of this amendatory Act of the | 12 |
| 94th General Assembly.
| 13 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
| 14 |
| (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 15 |
| Sec. 15-165. To certify amounts and submit vouchers.
| 16 |
| (a) The Board shall certify to the Governor on or before | 17 |
| November 15 of each
year the appropriation required from State | 18 |
| funds for the purposes of this
System for the following fiscal | 19 |
| year. The certification shall include a copy
of the actuarial | 20 |
| recommendations upon which it is based.
| 21 |
| On or before May 1, 2004, the Board shall recalculate and | 22 |
| recertify to
the Governor the amount of the required State | 23 |
| contribution to the System for
State fiscal year 2005, taking | 24 |
| into account the amounts appropriated to and
received by the | 25 |
| System under subsection (d) of Section 7.2 of the General
| 26 |
| Obligation Bond Act.
| 27 |
| On or before July 1, 2005, the Board shall recalculate and | 28 |
| recertify
to the Governor the amount of the required State
| 29 |
| contribution to the System for State fiscal year 2006, taking | 30 |
| into account the changes in required State contributions made | 31 |
| by Public Act 94-4
this amendatory Act of the 94th General | 32 |
| Assembly .
| 33 |
| On or before July 1, 2006, the Board shall recalculate and | 34 |
| recertify
to the Governor the amount of the required State
| 35 |
| contribution to the System for State fiscal year 2007, taking |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| into account the changes in required State contributions made | 2 |
| by this amendatory Act of the 94th General Assembly.
| 3 |
| (b) The Board shall certify to the State Comptroller or | 4 |
| employer, as the
case may be, from time to time, by its | 5 |
| president and secretary, with its seal
attached, the amounts | 6 |
| payable to the System from the various funds.
| 7 |
| (c) Beginning in State fiscal year 1996, on or as soon as | 8 |
| possible after the
15th day of each month the Board shall | 9 |
| submit vouchers for payment of State
contributions to the | 10 |
| System, in a total monthly amount of one-twelfth of the
| 11 |
| required annual State contribution certified under subsection | 12 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 13 |
| General Assembly through June 30, 2004, the Board shall not
| 14 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 15 |
| of the
fiscal year 2004 certified contribution amount | 16 |
| determined
under this Section after taking into consideration | 17 |
| the transfer to the
System under subsection (b) of Section | 18 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 19 |
| the State Comptroller and Treasurer by warrants drawn
on the | 20 |
| funds appropriated to the System for that fiscal year.
| 21 |
| If in any month the amount remaining unexpended from all | 22 |
| other
appropriations to the System for the applicable fiscal | 23 |
| year (including the
appropriations to the System under Section | 24 |
| 8.12 of the State Finance Act and
Section 1 of the State | 25 |
| Pension Funds Continuing Appropriation Act) is less than
the | 26 |
| amount lawfully vouchered under this Section, the difference | 27 |
| shall be paid
from the General Revenue Fund under the | 28 |
| continuing appropriation authority
provided in Section 1.1 of | 29 |
| the State Pension Funds Continuing Appropriation
Act.
| 30 |
| (d) So long as the payments received are the full amount | 31 |
| lawfully
vouchered under this Section, payments received by the | 32 |
| System under this
Section shall be applied first toward the | 33 |
| employer contribution to the
self-managed plan established | 34 |
| under Section 15-158.2. Payments shall be
applied second toward | 35 |
| the employer's portion of the normal costs of the System,
as | 36 |
| defined in subsection (f) of Section 15-155. The balance shall |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| be applied
toward the unfunded actuarial liabilities of the | 2 |
| System.
| 3 |
| (e) In the event that the System does not receive, as a | 4 |
| result of
legislative enactment or otherwise, payments | 5 |
| sufficient to
fully fund the employer contribution to the | 6 |
| self-managed plan
established under Section 15-158.2 and to | 7 |
| fully fund that portion of the
employer's portion of the normal | 8 |
| costs of the System, as calculated in
accordance with Section | 9 |
| 15-155(a-1), then any payments received shall be
applied | 10 |
| proportionately to the optional retirement program established | 11 |
| under
Section 15-158.2 and to the employer's portion of the | 12 |
| normal costs of the
System, as calculated in accordance with | 13 |
| Section 15-155(a-1).
| 14 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 15 |
| eff. 6-1-05.)
| 16 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 17 |
| Sec. 16-158. Contributions by State and other employing | 18 |
| units.
| 19 |
| (a) The State shall make contributions to the System by | 20 |
| means of
appropriations from the Common School Fund and other | 21 |
| State funds of amounts
which, together with other employer | 22 |
| contributions, employee contributions,
investment income, and | 23 |
| other income, will be sufficient to meet the cost of
| 24 |
| maintaining and administering the System on a 90% funded basis | 25 |
| in accordance
with actuarial recommendations.
| 26 |
| The Board shall determine the amount of State contributions | 27 |
| required for
each fiscal year on the basis of the actuarial | 28 |
| tables and other assumptions
adopted by the Board and the | 29 |
| recommendations of the actuary, using the formula
in subsection | 30 |
| (b-3).
| 31 |
| (a-1) Annually, on or before November 15, the Board shall | 32 |
| certify to the
Governor the amount of the required State | 33 |
| contribution for the coming fiscal
year. The certification | 34 |
| shall include a copy of the actuarial recommendations
upon | 35 |
| which it is based.
|
|
|
|
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LRB094 19509 AMC 55375 b |
|
| 1 |
| On or before May 1, 2004, the Board shall recalculate and | 2 |
| recertify to
the Governor the amount of the required State | 3 |
| contribution to the System for
State fiscal year 2005, taking | 4 |
| into account the amounts appropriated to and
received by the | 5 |
| System under subsection (d) of Section 7.2 of the General
| 6 |
| Obligation Bond Act.
| 7 |
| On or before July 1, 2005, the Board shall recalculate and | 8 |
| recertify
to the Governor the amount of the required State
| 9 |
| contribution to the System for State fiscal year 2006, taking | 10 |
| into account the changes in required State contributions made | 11 |
| by Public Act 94-4
this amendatory Act of the 94th General | 12 |
| Assembly .
| 13 |
| On or before July 1, 2006, the Board shall recalculate and | 14 |
| recertify
to the Governor the amount of the required State
| 15 |
| contribution to the System for State fiscal year 2007, taking | 16 |
| into account the changes in required State contributions made | 17 |
| by this amendatory Act of the 94th General Assembly.
| 18 |
| (b) Through State fiscal year 1995, the State contributions | 19 |
| shall be
paid to the System in accordance with Section 18-7 of | 20 |
| the School Code.
| 21 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 22 |
| of each month,
or as soon thereafter as may be practicable, the | 23 |
| Board shall submit vouchers
for payment of State contributions | 24 |
| to the System, in a total monthly amount of
one-twelfth of the | 25 |
| required annual State contribution certified under
subsection | 26 |
| (a-1).
From the
effective date of this amendatory Act of the | 27 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 28 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 29 |
| excess of the fiscal year 2004
certified contribution amount | 30 |
| determined under this Section
after taking into consideration | 31 |
| the transfer to the System
under subsection (a) of Section | 32 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 33 |
| the State Comptroller and
Treasurer by warrants drawn on the | 34 |
| funds appropriated to the System for that
fiscal year.
| 35 |
| If in any month the amount remaining unexpended from all | 36 |
| other appropriations
to the System for the applicable fiscal |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| year (including the appropriations to
the System under Section | 2 |
| 8.12 of the State Finance Act and Section 1 of the
State | 3 |
| Pension Funds Continuing Appropriation Act) is less than the | 4 |
| amount
lawfully vouchered under this subsection, the | 5 |
| difference shall be paid from the
Common School Fund under the | 6 |
| continuing appropriation authority provided in
Section 1.1 of | 7 |
| the State Pension Funds Continuing Appropriation Act.
| 8 |
| (b-2) Allocations from the Common School Fund apportioned | 9 |
| to school
districts not coming under this System shall not be | 10 |
| diminished or affected by
the provisions of this Article.
| 11 |
| (b-3) 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; except that in the
| 26 |
| following specified State fiscal years, the State contribution | 27 |
| to the System
shall not be less than the following indicated | 28 |
| percentages of the applicable
employee payroll, even if the | 29 |
| indicated percentage will produce a State
contribution in | 30 |
| excess of the amount otherwise required under this subsection
| 31 |
| and subsection (a), and notwithstanding any contrary | 32 |
| certification made under
subsection (a-1) before the effective | 33 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 34 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 35 |
| 2003; and
13.56% in FY 2004.
| 36 |
| Notwithstanding any other provision of this Article, the |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| total required State
contribution for State fiscal year 2006 is | 2 |
| $534,627,700.
| 3 |
| Notwithstanding any other provision of this Article, the | 4 |
| total required State
contribution for State fiscal year 2007 is | 5 |
| $738,014,500.
| 6 |
| For each of State fiscal years 2007
2008 through 2010, the | 7 |
| State contribution to
the System, as a percentage of the | 8 |
| applicable employee payroll, shall be
increased in equal annual | 9 |
| increments from the required State contribution for State | 10 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 11 |
| State is contributing at the rate otherwise required under this | 12 |
| 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 |
| Notwithstanding any other provision of this Section, the | 18 |
| required State
contribution for State fiscal year 2005 and for | 19 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 20 |
| calculated under this Section and
certified under subsection | 21 |
| (a-1), shall not exceed an amount equal to (i) the
amount of | 22 |
| the required State contribution that would have been calculated | 23 |
| under
this Section for that fiscal year if the System had not | 24 |
| received any payments
under subsection (d) of Section 7.2 of | 25 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 26 |
| State's total debt service payments for that fiscal
year on the | 27 |
| bonds issued for the purposes of that Section 7.2, as | 28 |
| determined
and certified by the Comptroller, that is the same | 29 |
| as the System's portion of
the total moneys distributed under | 30 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 31 |
| Act. In determining this maximum for State fiscal years 2008 | 32 |
| through 2010, however, the amount referred to in item (i) shall | 33 |
| be increased, as a percentage of the applicable employee | 34 |
| payroll, in equal increments calculated from the sum of the | 35 |
| required State contribution for State fiscal year 2007 plus the | 36 |
| applicable portion of the State's total debt service payments |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| for fiscal year 2007 on the bonds issued for the purposes of | 2 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 3 |
| State fiscal year 2011, the
State is contributing at the rate | 4 |
| otherwise required under this Section.
| 5 |
| (c) Payment of the required State contributions and of all | 6 |
| pensions,
retirement annuities, death benefits, refunds, and | 7 |
| other benefits granted
under or assumed by this System, and all | 8 |
| expenses in connection with the
administration and operation | 9 |
| thereof, are obligations of the State.
| 10 |
| If members are paid from special trust or federal funds | 11 |
| which are
administered by the employing unit, whether school | 12 |
| district or other
unit, the employing unit shall pay to the | 13 |
| System from such
funds the full accruing retirement costs based | 14 |
| upon that
service, as determined by the System. Employer | 15 |
| contributions, based on
salary paid to members from federal | 16 |
| funds, may be forwarded by the distributing
agency of the State | 17 |
| of Illinois to the System prior to allocation, in an
amount | 18 |
| determined in accordance with guidelines established by such
| 19 |
| agency and the System.
| 20 |
| (d) Effective July 1, 1986, any employer of a teacher as | 21 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 22 |
| employer's normal cost
of benefits based upon the teacher's | 23 |
| service, in addition to
employee contributions, as determined | 24 |
| by the System. Such employer
contributions shall be forwarded | 25 |
| monthly in accordance with guidelines
established by the | 26 |
| System.
| 27 |
| However, with respect to benefits granted under Section | 28 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 29 |
| of Section 16-106, the
employer's contribution shall be 12% | 30 |
| (rather than 20%) of the member's
highest annual salary rate | 31 |
| for each year of creditable service granted, and
the employer | 32 |
| shall also pay the required employee contribution on behalf of
| 33 |
| the teacher. For the purposes of Sections 16-133.4 and | 34 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 35 |
| 16-106 who is serving in that capacity
while on leave of | 36 |
| absence from another employer under this Article shall not
be |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| considered an employee of the employer from which the teacher | 2 |
| is on leave.
| 3 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 4 |
| shall pay to the System an employer contribution computed as | 5 |
| follows:
| 6 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 7 |
| employer
contribution shall be equal to 0.3% of each | 8 |
| teacher's salary.
| 9 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 10 |
| contribution shall be equal to 0.58% of each teacher's | 11 |
| salary.
| 12 |
| The school district or other employing unit may pay these | 13 |
| employer
contributions out of any source of funding available | 14 |
| for that purpose and
shall forward the contributions to the | 15 |
| System on the schedule established
for the payment of member | 16 |
| contributions.
| 17 |
| These employer contributions are intended to offset a | 18 |
| portion of the cost
to the System of the increases in | 19 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 20 |
| Each employer of teachers is entitled to a credit against | 21 |
| the contributions
required under this subsection (e) with | 22 |
| respect to salaries paid to teachers
for the period January 1, | 23 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 24 |
| employer under subsection (a-5) of Section 6.6 of the State | 25 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 26 |
| paid to teachers for that
period.
| 27 |
| The additional 1% employee contribution required under | 28 |
| Section 16-152 by
this amendatory Act of 1998 is the | 29 |
| responsibility of the teacher and not the
teacher's employer, | 30 |
| unless the employer agrees, through collective bargaining
or | 31 |
| otherwise, to make the contribution on behalf of the teacher.
| 32 |
| If an employer is required by a contract in effect on May | 33 |
| 1, 1998 between the
employer and an employee organization to | 34 |
| pay, on behalf of all its full-time
employees
covered by this | 35 |
| Article, all mandatory employee contributions required under
| 36 |
| this Article, then the employer shall be excused from paying |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| the employer
contribution required under this subsection (e) | 2 |
| for the balance of the term
of that contract. The employer and | 3 |
| the employee organization shall jointly
certify to the System | 4 |
| the existence of the contractual requirement, in such
form as | 5 |
| the System may prescribe. This exclusion shall cease upon the
| 6 |
| termination, extension, or renewal of the contract at any time | 7 |
| after May 1,
1998.
| 8 |
| (f) If the amount of a teacher's salary for any school year | 9 |
| used to determine final average salary exceeds the amount of | 10 |
| his or her salary with the same employer for the previous | 11 |
| school year by more than 6%, the teacher's employer shall pay | 12 |
| to the System, in addition to all other payments required under | 13 |
| this Section and in accordance with guidelines established by | 14 |
| the System, the present value of the increase in benefits | 15 |
| resulting from the portion of the increase in salary that is in | 16 |
| excess of 6%. This present value shall be computed by the | 17 |
| System on the basis of the actuarial assumptions and tables | 18 |
| used in the most recent actuarial valuation of the System that | 19 |
| is available at the time of the computation. The employer | 20 |
| contributions required under this subsection (f) shall be paid | 21 |
| in the form of a lump sum within 30 days after receipt of the | 22 |
| bill after the teacher begins receiving benefits under this | 23 |
| Article.
| 24 |
| The provisions of this subsection (f) do not apply to | 25 |
| salary increases paid to teachers under contracts or collective | 26 |
| bargaining agreements entered into, amended, or renewed before | 27 |
| the effective date of this amendatory Act of the 94th General | 28 |
| Assembly.
| 29 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 30 |
| eff. 6-1-05.)
| 31 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 32 |
| Sec. 18-131. Financing; employer contributions.
| 33 |
| (a) The State of Illinois shall make contributions to this | 34 |
| System by
appropriations of the amounts which, together with | 35 |
| the contributions of
participants, net earnings on |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| investments, and other income, will meet the
costs of | 2 |
| maintaining and administering this System on a 90% funded basis | 3 |
| in
accordance with actuarial recommendations.
| 4 |
| (b) The Board shall determine the amount of State | 5 |
| contributions
required for each fiscal year on the basis of the | 6 |
| actuarial tables and other
assumptions adopted by the Board and | 7 |
| the prescribed rate of interest, using
the formula in | 8 |
| subsection (c).
| 9 |
| (c) For State fiscal years 2011 through 2045, the minimum | 10 |
| contribution
to the System to be made by the State for each | 11 |
| fiscal year shall be an amount
determined by the System to be | 12 |
| sufficient to bring the total assets of the
System up to 90% of | 13 |
| the total actuarial liabilities of the System by the end of
| 14 |
| State fiscal year 2045. In making these determinations, the | 15 |
| required State
contribution shall be calculated each year as a | 16 |
| level percentage of payroll
over the years remaining to and | 17 |
| including fiscal year 2045 and shall be
determined under the | 18 |
| projected unit credit actuarial cost method.
| 19 |
| For State fiscal years 1996 through 2005, the State | 20 |
| contribution to
the System, as a percentage of the applicable | 21 |
| employee payroll, shall be
increased in equal annual increments | 22 |
| so that by State fiscal year 2011, the
State is contributing at | 23 |
| the rate required under this Section.
| 24 |
| Notwithstanding any other provision of this Article, the | 25 |
| total required State
contribution for State fiscal year 2006 is | 26 |
| $29,189,400.
| 27 |
| Notwithstanding any other provision of this Article, the | 28 |
| total required State
contribution for State fiscal year 2007 is | 29 |
| $35,236,800.
| 30 |
| For each of State fiscal years 2007
2008 through 2010, the | 31 |
| State contribution to
the System, as a percentage of the | 32 |
| applicable employee payroll, shall be
increased in equal annual | 33 |
| increments from the required State contribution for State | 34 |
| fiscal year 2005
2007 , so that by State fiscal year 2011, the
| 35 |
| State is contributing at the rate otherwise required under this | 36 |
| Section.
|
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| Beginning in State fiscal year 2046, the minimum State | 2 |
| contribution for
each fiscal year shall be the amount needed to | 3 |
| maintain the total assets of
the System at 90% of the total | 4 |
| actuarial liabilities of the System.
| 5 |
| Notwithstanding any other provision of this Section, the | 6 |
| required State
contribution for State fiscal year 2005 and for | 7 |
| fiscal year 2007
2008 and each fiscal year thereafter, as
| 8 |
| calculated under this Section and
certified under Section | 9 |
| 18-140, shall not exceed an amount equal to (i) the
amount of | 10 |
| the required State contribution that would have been calculated | 11 |
| under
this Section for that fiscal year if the System had not | 12 |
| received any payments
under subsection (d) of Section 7.2 of | 13 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 14 |
| State's total debt service payments for that fiscal
year on the | 15 |
| bonds issued for the purposes of that Section 7.2, as | 16 |
| determined
and certified by the Comptroller, that is the same | 17 |
| as the System's portion of
the total moneys distributed under | 18 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 19 |
| Act. In determining this maximum for State fiscal years 2008 | 20 |
| through 2010, however, the amount referred to in item (i) shall | 21 |
| be increased, as a percentage of the applicable employee | 22 |
| payroll, in equal increments calculated from the sum of the | 23 |
| required State contribution for State fiscal year 2007 plus the | 24 |
| applicable portion of the State's total debt service payments | 25 |
| for fiscal year 2007 on the bonds issued for the purposes of | 26 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 27 |
| State fiscal year 2011, the
State is contributing at the rate | 28 |
| otherwise required under this Section.
| 29 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)
| 30 |
| (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 31 |
| Sec. 18-140. To certify required State contributions and | 32 |
| submit vouchers.
| 33 |
| (a) The Board shall certify to the Governor, on or before | 34 |
| November 15 of
each year, the amount of the required State | 35 |
| contribution to the System for the
following fiscal year. The |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| certification shall include a copy of the actuarial
| 2 |
| recommendations upon which it is based.
| 3 |
| On or before May 1, 2004, the Board shall recalculate and | 4 |
| recertify to
the Governor the amount of the required State | 5 |
| contribution to the System for
State fiscal year 2005, taking | 6 |
| into account the amounts appropriated to and
received by the | 7 |
| System under subsection (d) of Section 7.2 of the General
| 8 |
| Obligation Bond Act.
| 9 |
| On or before July 1, 2005, the Board shall recalculate and | 10 |
| recertify
to the Governor the amount of the required State
| 11 |
| contribution to the System for State fiscal year 2006, taking | 12 |
| into account the changes in required State contributions made | 13 |
| by Public Act 94-4
this amendatory Act of the 94th General | 14 |
| Assembly .
| 15 |
| On or before July 1, 2006, the Board shall recalculate and | 16 |
| recertify
to the Governor the amount of the required State
| 17 |
| contribution to the System for State fiscal year 2007, taking | 18 |
| into account the changes in required State contributions made | 19 |
| by this amendatory Act of the 94th General Assembly.
| 20 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 21 |
| possible after
the 15th day of each month the Board shall | 22 |
| submit vouchers for payment of State
contributions to the | 23 |
| System, in a total monthly amount of one-twelfth of the
| 24 |
| required annual State contribution certified under subsection | 25 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 26 |
| General Assembly through June 30, 2004, the Board shall not
| 27 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 28 |
| of the
fiscal year 2004 certified contribution amount | 29 |
| determined
under this Section after taking into consideration | 30 |
| the transfer to the
System under subsection (c) of Section | 31 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 32 |
| the State Comptroller and Treasurer by warrants drawn
on the | 33 |
| funds appropriated to the System for that fiscal year.
| 34 |
| If in any month the amount remaining unexpended from all | 35 |
| other
appropriations to the System for the applicable fiscal | 36 |
| year (including the
appropriations to the System under Section |
|
|
|
HB5572 |
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LRB094 19509 AMC 55375 b |
|
| 1 |
| 8.12 of the State Finance Act and
Section 1 of the State | 2 |
| Pension Funds Continuing Appropriation Act) is less than
the | 3 |
| amount lawfully vouchered under this Section, the difference | 4 |
| shall be paid
from the General Revenue Fund under the | 5 |
| continuing appropriation authority
provided in Section 1.1 of | 6 |
| the State Pension Funds Continuing Appropriation
Act.
| 7 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 8 |
| eff. 6-1-05.)
| 9 |
| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.
|
|