Full Text of HB5351 97th General Assembly
HB5351 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5351 Introduced 2/15/2012, by Rep. Bill Mitchell SYNOPSIS AS INTRODUCED: |
| 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 5/14-131 | | 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. With respect to the 5 State-funded retirement systems, provides that each system's certification of the required State contribution for Fiscal Year 2014 shall include, in addition to the amount otherwise calculated for FY2014, an amount certified by the Board to be necessary to bring the total contributions of the State to the system for Fiscal Years 1996 through 2012 up to the level that would have been contributed if the State had complied throughout that period with the contribution formula as originally enacted in Public Act 88-593, plus an amount representing the system's lost investment earnings resulting from the delayed payment of those contributions. Also includes revisory changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employe benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 2-124, 2-134, 14-131, 14-135.08, 15-155, 15-165, | 6 | | 16-158, 18-131, and 18-140 as follows:
| 7 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 8 | | Sec. 2-124. Contributions by State.
| 9 | | (a) The State shall make contributions to the System by
| 10 | | appropriations of amounts which, together with the | 11 | | contributions of
participants, interest earned on investments, | 12 | | and other income
will meet the cost of maintaining and | 13 | | administering the System on a 90%
funded basis in accordance | 14 | | with actuarial recommendations.
| 15 | | (b) The Board shall determine the amount of State
| 16 | | contributions required for each fiscal year on the basis of the
| 17 | | actuarial tables and other assumptions adopted by the Board and | 18 | | the
prescribed rate of interest, using the formula in | 19 | | subsection (c).
| 20 | | (c) For State fiscal years 2012 through 2045, the minimum | 21 | | contribution
to the System to be made by the State for each | 22 | | fiscal year shall be an amount
determined by the System to be | 23 | | sufficient to bring the total assets of the
System up to 90% of |
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| 1 | | the total actuarial liabilities of the System by the end of
| 2 | | State fiscal year 2045. In making these determinations, the | 3 | | required State
contribution shall be calculated each year as a | 4 | | level percentage of payroll
over the years remaining to and | 5 | | including fiscal year 2045 and shall be
determined under the | 6 | | projected unit credit actuarial cost method.
| 7 | | For State fiscal years 1996 through 2005, the State | 8 | | contribution to
the System, as a percentage of the applicable | 9 | | employee payroll, shall be
increased in equal annual increments | 10 | | so that by State fiscal year 2011, the
State is contributing at | 11 | | the rate required under this Section.
| 12 | | Notwithstanding any other provision of this Article, the | 13 | | total required State
contribution for State fiscal year 2006 is | 14 | | $4,157,000.
| 15 | | Notwithstanding any other provision of this Article, the | 16 | | total required State
contribution for State fiscal year 2007 is | 17 | | $5,220,300.
| 18 | | For each of State fiscal years 2008 through 2009, the State | 19 | | contribution to
the System, as a percentage of the applicable | 20 | | employee payroll, shall be
increased in equal annual increments | 21 | | from the required State contribution for State fiscal year | 22 | | 2007, so that by State fiscal year 2011, the
State is | 23 | | contributing at the rate otherwise required under this Section.
| 24 | | Notwithstanding any other provision of this Article, the | 25 | | total required State contribution for State fiscal year 2010 is | 26 | | $10,454,000 and shall be made from the proceeds of bonds sold |
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| 1 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 2 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 3 | | expenses determined by the System's share of total bond | 4 | | proceeds, (ii) any amounts received from the General Revenue | 5 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 6 | | proceeds due to the issuance of discounted bonds, if | 7 | | applicable. | 8 | | Notwithstanding any other provision of this Article, the
| 9 | | total required State contribution for State fiscal year 2011 is
| 10 | | the amount recertified by the System on or before April 1, 2011 | 11 | | pursuant to Section 2-134 and shall be made from the proceeds | 12 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 13 | | the General
Obligation Bond Act, less (i) the pro rata share of | 14 | | bond sale
expenses determined by the System's share of total | 15 | | bond
proceeds, (ii) any amounts received from the General | 16 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 17 | | bond
proceeds due to the issuance of discounted bonds, if
| 18 | | applicable. | 19 | | Notwithstanding any other provision of this Article, the
| 20 | | total required State contribution for State fiscal year 2014 | 21 | | shall include, in addition to the amount otherwise calculated | 22 | | under this Section for FY2014, the amount certified by the | 23 | | Board to be necessary to bring the total contributions of the | 24 | | State to the System for Fiscal Years 1996 through 2012 up to | 25 | | the level that would have been contributed if the State had | 26 | | complied throughout that period with the contribution formula |
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| 1 | | as originally enacted in Public Act 88-593, plus an amount | 2 | | representing the System's lost investment earnings resulting | 3 | | from the delayed payment of those contributions. | 4 | | Beginning in State fiscal year 2046, the minimum State | 5 | | contribution for
each fiscal year shall be the amount needed to | 6 | | maintain the total assets of
the System at 90% of the total | 7 | | actuarial liabilities of the System.
| 8 | | Amounts received by the System pursuant to Section 25 of | 9 | | the Budget Stabilization Act or Section 8.12 of the State | 10 | | Finance Act in any fiscal year do not reduce and do not | 11 | | constitute payment of any portion of the minimum State | 12 | | contribution required under this Article in that fiscal year. | 13 | | Such amounts shall not reduce, and shall not be included in the | 14 | | calculation of, the required State contributions under this | 15 | | Article in any future year until the System has reached a | 16 | | funding ratio of at least 90%. A reference in this Article to | 17 | | the "required State contribution" or any substantially similar | 18 | | term does not include or apply to any amounts payable to the | 19 | | System under Section 25 of the Budget Stabilization Act.
| 20 | | Notwithstanding any other provision of this Section, the | 21 | | required State
contribution for State fiscal year 2005 and for | 22 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 23 | | under this Section and
certified under Section 2-134, shall not | 24 | | exceed an amount equal to (i) the
amount of the required State | 25 | | contribution that would have been calculated under
this Section | 26 | | for that fiscal year if the System had not received any |
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| 1 | | payments
under subsection (d) of Section 7.2 of the General | 2 | | Obligation Bond Act, minus
(ii) the portion of the State's | 3 | | total debt service payments for that fiscal
year on the bonds | 4 | | issued in fiscal year 2003 for the purposes of that Section | 5 | | 7.2, as determined
and certified by the Comptroller, that is | 6 | | the same as the System's portion of
the total moneys | 7 | | distributed under subsection (d) of Section 7.2 of the General
| 8 | | Obligation Bond Act. In determining this maximum for State | 9 | | fiscal years 2008 through 2010, however, the amount referred to | 10 | | in item (i) shall be increased, as a percentage of the | 11 | | applicable employee payroll, in equal increments calculated | 12 | | from the sum of the required State contribution for State | 13 | | fiscal year 2007 plus the applicable portion of the State's | 14 | | total debt service payments for fiscal year 2007 on the bonds | 15 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 16 | | the General
Obligation Bond Act, so that, by State fiscal year | 17 | | 2011, the
State is contributing at the rate otherwise required | 18 | | under this Section.
| 19 | | (d) For purposes of determining the required State | 20 | | contribution to the System, the value of the System's assets | 21 | | shall be equal to the actuarial value of the System's assets, | 22 | | which shall be calculated as follows: | 23 | | As of June 30, 2008, the actuarial value of the System's | 24 | | assets shall be equal to the market value of the assets as of | 25 | | that date. In determining the actuarial value of the System's | 26 | | assets for fiscal years after June 30, 2008, any actuarial |
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| 1 | | gains or losses from investment return incurred in a fiscal | 2 | | year shall be recognized in equal annual amounts over the | 3 | | 5-year period following that fiscal year. | 4 | | (e) For purposes of determining the required State | 5 | | contribution to the system for a particular year, the actuarial | 6 | | value of assets shall be assumed to earn a rate of return equal | 7 | | to the system's actuarially assumed rate of return. | 8 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | 9 | | 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff. | 10 | | 3-18-11; revised 4-6-11.)
| 11 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 12 | | Sec. 2-134. To certify required State contributions and | 13 | | submit vouchers.
| 14 | | (a) The Board shall certify to the Governor on or before | 15 | | December 15 of each
year the amount of the required State | 16 | | contribution to the System for the next
fiscal year. The | 17 | | certification shall include a copy of the actuarial
| 18 | | recommendations upon which it is based.
| 19 | | On or before May 1, 2004, the Board shall recalculate and | 20 | | recertify to
the Governor the amount of the required State | 21 | | contribution to the System for
State fiscal year 2005, taking | 22 | | into account the amounts appropriated to and
received by the | 23 | | System under subsection (d) of Section 7.2 of the General
| 24 | | Obligation Bond Act.
| 25 | | On or before July 1, 2005, the Board shall recalculate and |
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| 1 | | recertify
to the Governor the amount of the required State
| 2 | | contribution to the System for State fiscal year 2006, taking | 3 | | into account the changes in required State contributions made | 4 | | by this amendatory Act of the 94th General Assembly.
| 5 | | On or before April 1, 2011, the Board shall recalculate and | 6 | | recertify to the Governor the amount of the required State | 7 | | contribution to the System for State fiscal year 2011, applying | 8 | | the changes made by Public Act 96-889 to the System's assets | 9 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 10 | | was approved on that date. | 11 | | The Board's certification of the required State | 12 | | contribution for Fiscal Year 2014 shall include, in addition to | 13 | | the amount otherwise calculated under this Section for FY2014, | 14 | | an amount determined by the Board to be necessary to bring the | 15 | | total contributions of the State to the system for Fiscal Years | 16 | | 1996 through 2012 up to the level that would have been | 17 | | contributed if the State had complied with the contribution | 18 | | formula as originally enacted in Public Act 88-593, plus an | 19 | | amount representing the system's lost investment earnings | 20 | | resulting from the delayed payment of those contributions. | 21 | | (b) Beginning in State fiscal year 1996, on or as soon as | 22 | | possible after the
15th day of each month the Board shall | 23 | | submit vouchers for payment of State
contributions to the | 24 | | System, in a total monthly amount of one-twelfth of the
| 25 | | required annual State contribution certified under subsection | 26 | | (a).
From the effective date of this amendatory Act
of the 93rd |
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| 1 | | General Assembly through June 30, 2004, the Board shall not
| 2 | | submit vouchers for the remainder of fiscal year 2004 in excess | 3 | | of the
fiscal year 2004 certified contribution amount | 4 | | determined
under this Section after taking into consideration | 5 | | the transfer to the
System under subsection (d) of Section | 6 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 7 | | the State Comptroller and Treasurer by warrants drawn
on the | 8 | | funds appropriated to the System for that fiscal year. If in | 9 | | any month
the amount remaining unexpended from all other | 10 | | appropriations to the System for
the applicable fiscal year | 11 | | (including the appropriations to the System under
Section 8.12 | 12 | | of the State Finance Act and Section 1 of the State Pension | 13 | | Funds
Continuing Appropriation Act) is less than the amount | 14 | | lawfully vouchered under
this Section, the difference shall be | 15 | | paid from the General Revenue Fund under
the continuing | 16 | | appropriation authority provided in Section 1.1 of the State
| 17 | | Pension Funds Continuing Appropriation Act.
| 18 | | (c) The full amount of any annual appropriation for the | 19 | | System for
State fiscal year 1995 shall be transferred and made | 20 | | available to the System
at the beginning of that fiscal year at | 21 | | the request of the Board.
Any excess funds remaining at the end | 22 | | of any fiscal year from appropriations
shall be retained by the | 23 | | System as a general reserve to meet the System's
accrued | 24 | | liabilities.
| 25 | | (Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11; | 26 | | 96-1511, eff. 1-27-11.)
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| 1 | | (40 ILCS 5/14-131)
| 2 | | Sec. 14-131. Contributions by State.
| 3 | | (a) The State shall make contributions to the System by | 4 | | appropriations of
amounts which, together with other employer | 5 | | contributions from trust, federal,
and other funds, employee | 6 | | contributions, investment income, and other income,
will be | 7 | | sufficient to meet the cost of maintaining and administering | 8 | | the System
on a 90% funded basis in accordance with actuarial | 9 | | recommendations.
| 10 | | For the purposes of this Section and Section 14-135.08, | 11 | | references to State
contributions refer only to employer | 12 | | contributions and do not include employee
contributions that | 13 | | are picked up or otherwise paid by the State or a
department on | 14 | | behalf of the employee.
| 15 | | (b) The Board shall determine the total amount of State | 16 | | contributions
required for each fiscal year on the basis of the | 17 | | actuarial tables and other
assumptions adopted by the Board, | 18 | | using the formula in subsection (e).
| 19 | | The Board shall also determine a State contribution rate | 20 | | for each fiscal
year, expressed as a percentage of payroll, | 21 | | based on the total required State
contribution for that fiscal | 22 | | year (less the amount received by the System from
| 23 | | appropriations under Section 8.12 of the State Finance Act and | 24 | | Section 1 of the
State Pension Funds Continuing Appropriation | 25 | | Act, if any, for the fiscal year
ending on the June 30 |
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| 1 | | immediately preceding the applicable November 15
certification | 2 | | deadline), the estimated payroll (including all forms of
| 3 | | compensation) for personal services rendered by eligible | 4 | | employees, and the
recommendations of the actuary.
| 5 | | For the purposes of this Section and Section 14.1 of the | 6 | | State Finance Act,
the term "eligible employees" includes | 7 | | employees who participate in the System,
persons who may elect | 8 | | to participate in the System but have not so elected,
persons | 9 | | who are serving a qualifying period that is required for | 10 | | participation,
and annuitants employed by a department as | 11 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 12 | | (c) Contributions shall be made by the several departments | 13 | | for each pay
period by warrants drawn by the State Comptroller | 14 | | against their respective
funds or appropriations based upon | 15 | | vouchers stating the amount to be so
contributed. These amounts | 16 | | shall be based on the full rate certified by the
Board under | 17 | | Section 14-135.08 for that fiscal year.
From the effective date | 18 | | of this amendatory Act of the 93rd General
Assembly through the | 19 | | payment of the final payroll from fiscal year 2004
| 20 | | appropriations, the several departments shall not make | 21 | | contributions
for the remainder of fiscal year 2004 but shall | 22 | | instead make payments
as required under subsection (a-1) of | 23 | | Section 14.1 of the State Finance Act.
The several departments | 24 | | shall resume those contributions at the commencement of
fiscal | 25 | | year 2005.
| 26 | | (c-1) Notwithstanding subsection (c) of this Section, for |
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| 1 | | fiscal years 2010 and 2012 only, contributions by the several | 2 | | departments are not required to be made for General Revenue | 3 | | Funds payrolls processed by the Comptroller. Payrolls paid by | 4 | | the several departments from all other State funds must | 5 | | continue to be processed pursuant to subsection (c) of this | 6 | | Section. | 7 | | (c-2) For State fiscal years 2010 and 2012 only, on or as | 8 | | soon as possible after the 15th day of each month, the Board | 9 | | shall submit vouchers for payment of State contributions to the | 10 | | System, in a total monthly amount of one-twelfth of the fiscal | 11 | | year General Revenue Fund contribution as certified by the | 12 | | System pursuant to Section 14-135.08 of the Illinois Pension | 13 | | Code. | 14 | | (d) If an employee is paid from trust funds or federal | 15 | | funds, the
department or other employer shall pay employer | 16 | | contributions from those funds
to the System at the certified | 17 | | rate, unless the terms of the trust or the
federal-State | 18 | | agreement preclude the use of the funds for that purpose, in
| 19 | | which case the required employer contributions shall be paid by | 20 | | the State.
From the effective date of this amendatory
Act of | 21 | | the 93rd General Assembly through the payment of the final
| 22 | | payroll from fiscal year 2004 appropriations, the department or | 23 | | other
employer shall not pay contributions for the remainder of | 24 | | fiscal year
2004 but shall instead make payments as required | 25 | | under subsection (a-1) of
Section 14.1 of the State Finance | 26 | | Act. The department or other employer shall
resume payment of
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| 1 | | contributions at the commencement of fiscal year 2005.
| 2 | | (e) For State fiscal years 2012 through 2045, the minimum | 3 | | contribution
to the System to be made by the State for each | 4 | | fiscal year shall be an amount
determined by the System to be | 5 | | sufficient to bring the total assets of the
System up to 90% of | 6 | | the total actuarial liabilities of the System by the end
of | 7 | | State fiscal year 2045. In making these determinations, the | 8 | | required State
contribution shall be calculated each year as a | 9 | | level percentage of payroll
over the years remaining to and | 10 | | including fiscal year 2045 and shall be
determined under the | 11 | | projected unit credit actuarial cost method.
| 12 | | For State fiscal years 1996 through 2005, the State | 13 | | contribution to
the System, as a percentage of the applicable | 14 | | employee payroll, shall be
increased in equal annual increments | 15 | | so that by State fiscal year 2011, the
State is contributing at | 16 | | the rate required under this Section; except that
(i) for State | 17 | | fiscal year 1998, for all purposes of this Code and any other
| 18 | | law of this State, the certified percentage of the applicable | 19 | | employee payroll
shall be 5.052% for employees earning eligible | 20 | | creditable service under Section
14-110 and 6.500% for all | 21 | | other employees, notwithstanding any contrary
certification | 22 | | made under Section 14-135.08 before the effective date of this
| 23 | | amendatory Act of 1997, and (ii)
in the following specified | 24 | | State fiscal years, the State contribution to
the System shall | 25 | | not be less than the following indicated percentages of the
| 26 | | applicable employee payroll, even if the indicated percentage |
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| 1 | | will produce a
State contribution in excess of the amount | 2 | | otherwise required under this
subsection and subsection (a):
| 3 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 4 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State
contribution to the System for State | 7 | | fiscal year 2006 is $203,783,900.
| 8 | | Notwithstanding any other provision of this Article, the | 9 | | total required State
contribution to the System for State | 10 | | fiscal year 2007 is $344,164,400.
| 11 | | For each of State fiscal years 2008 through 2009, the State | 12 | | contribution to
the System, as a percentage of the applicable | 13 | | employee payroll, shall be
increased in equal annual increments | 14 | | from the required State contribution for State fiscal year | 15 | | 2007, so that by State fiscal year 2011, the
State is | 16 | | contributing at the rate otherwise required under this Section.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State General Revenue Fund contribution for | 19 | | State fiscal year 2010 is $723,703,100 and shall be made from | 20 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 21 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 22 | | pro rata share of bond sale expenses determined by the System's | 23 | | share of total bond proceeds, (ii) any amounts received from | 24 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 25 | | reduction in bond proceeds due to the issuance of discounted | 26 | | bonds, if applicable. |
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| 1 | | Notwithstanding any other provision of this Article, the
| 2 | | total required State General Revenue Fund contribution for
| 3 | | State fiscal year 2011 is the amount recertified by the System | 4 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 5 | | shall be made from
the proceeds of bonds sold in fiscal year | 6 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 7 | | Act, less (i) the
pro rata share of bond sale expenses | 8 | | determined by the System's
share of total bond proceeds, (ii) | 9 | | any amounts received from
the General Revenue Fund in fiscal | 10 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 11 | | issuance of discounted
bonds, if applicable. | 12 | | Notwithstanding any other provision of this Article, the
| 13 | | total required State contribution for State fiscal year 2014 | 14 | | shall include, in addition to the amount otherwise calculated | 15 | | under this Section for FY2014, the amount certified by the | 16 | | Board to be necessary to bring the total contributions of the | 17 | | State to the System for Fiscal Years 1996 through 2012 up to | 18 | | the level that would have been contributed if the State had | 19 | | complied throughout that period with the contribution formula | 20 | | as originally enacted in Public Act 88-593, plus an amount | 21 | | representing the System's lost investment earnings resulting | 22 | | from the delayed payment of those contributions. | 23 | | Beginning in State fiscal year 2046, the minimum State | 24 | | contribution for
each fiscal year shall be the amount needed to | 25 | | maintain the total assets of
the System at 90% of the total | 26 | | actuarial liabilities of the System.
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| 1 | | Amounts received by the System pursuant to Section 25 of | 2 | | the Budget Stabilization Act or Section 8.12 of the State | 3 | | Finance Act in any fiscal year do not reduce and do not | 4 | | constitute payment of any portion of the minimum State | 5 | | contribution required under this Article in that fiscal year. | 6 | | Such amounts shall not reduce, and shall not be included in the | 7 | | calculation of, the required State contributions under this | 8 | | Article in any future year until the System has reached a | 9 | | funding ratio of at least 90%. A reference in this Article to | 10 | | the "required State contribution" or any substantially similar | 11 | | term does not include or apply to any amounts payable to the | 12 | | System under Section 25 of the Budget Stabilization Act.
| 13 | | Notwithstanding any other provision of this Section, the | 14 | | required State
contribution for State fiscal year 2005 and for | 15 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 16 | | under this Section and
certified under Section 14-135.08, shall | 17 | | not exceed an amount equal to (i) the
amount of the required | 18 | | State contribution that would have been calculated under
this | 19 | | Section for that fiscal year if the System had not received any | 20 | | payments
under subsection (d) of Section 7.2 of the General | 21 | | Obligation Bond Act, minus
(ii) the portion of the State's | 22 | | total debt service payments for that fiscal
year on the bonds | 23 | | issued in fiscal year 2003 for the purposes of that Section | 24 | | 7.2, as determined
and certified by the Comptroller, that is | 25 | | the same as the System's portion of
the total moneys | 26 | | distributed under subsection (d) of Section 7.2 of the General
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| 1 | | Obligation Bond Act. In determining this maximum for State | 2 | | fiscal years 2008 through 2010, however, the amount referred to | 3 | | in item (i) shall be increased, as a percentage of the | 4 | | applicable employee payroll, in equal increments calculated | 5 | | from the sum of the required State contribution for State | 6 | | fiscal year 2007 plus the applicable portion of the State's | 7 | | total debt service payments for fiscal year 2007 on the bonds | 8 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 9 | | the General
Obligation Bond Act, so that, by State fiscal year | 10 | | 2011, the
State is contributing at the rate otherwise required | 11 | | under this Section.
| 12 | | (f) After the submission of all payments for eligible | 13 | | employees
from personal services line items in fiscal year 2004 | 14 | | have been made,
the Comptroller shall provide to the System a | 15 | | certification of the sum
of all fiscal year 2004 expenditures | 16 | | for personal services that would
have been covered by payments | 17 | | to the System under this Section if the
provisions of this | 18 | | amendatory Act of the 93rd General Assembly had not been
| 19 | | enacted. Upon
receipt of the certification, the System shall | 20 | | determine the amount
due to the System based on the full rate | 21 | | certified by the Board under
Section 14-135.08 for fiscal year | 22 | | 2004 in order to meet the State's
obligation under this | 23 | | Section. The System shall compare this amount
due to the amount | 24 | | received by the System in fiscal year 2004 through
payments | 25 | | under this Section and under Section 6z-61 of the State Finance | 26 | | Act.
If the amount
due is more than the amount received, the |
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| 1 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 2 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 3 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 4 | | Continuing Appropriation Act. If the amount due is less than | 5 | | the
amount received, the
difference shall be termed the "Fiscal | 6 | | Year 2004 Overpayment" for purposes of
this Section, and the | 7 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 8 | | the Pension Contribution Fund as soon as practicable
after the | 9 | | certification.
| 10 | | (g) For purposes of determining the required State | 11 | | contribution to the System, the value of the System's assets | 12 | | shall be equal to the actuarial value of the System's assets, | 13 | | which shall be calculated as follows: | 14 | | As of June 30, 2008, the actuarial value of the System's | 15 | | assets shall be equal to the market value of the assets as of | 16 | | that date. In determining the actuarial value of the System's | 17 | | assets for fiscal years after June 30, 2008, any actuarial | 18 | | gains or losses from investment return incurred in a fiscal | 19 | | year shall be recognized in equal annual amounts over the | 20 | | 5-year period following that fiscal year. | 21 | | (h) For purposes of determining the required State | 22 | | contribution to the System for a particular year, the actuarial | 23 | | value of assets shall be assumed to earn a rate of return equal | 24 | | to the System's actuarially assumed rate of return. | 25 | | (i) After the submission of all payments for eligible | 26 | | employees from personal services line items paid from the |
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| 1 | | General Revenue Fund in fiscal year 2010 have been made, the | 2 | | Comptroller shall provide to the System a certification of the | 3 | | sum of all fiscal year 2010 expenditures for personal services | 4 | | that would have been covered by payments to the System under | 5 | | this Section if the provisions of this amendatory Act of the | 6 | | 96th General Assembly had not been enacted. Upon receipt of the | 7 | | certification, the System shall determine the amount due to the | 8 | | System based on the full rate certified by the Board under | 9 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 10 | | State's obligation under this Section. The System shall compare | 11 | | this amount due to the amount received by the System in fiscal | 12 | | year 2010 through payments under this Section. If the amount | 13 | | due is more than the amount received, the difference shall be | 14 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 15 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 16 | | under Section 1.2 of the State Pension Funds Continuing | 17 | | Appropriation Act. If the amount due is less than the amount | 18 | | received, the difference shall be termed the "Fiscal Year 2010 | 19 | | Overpayment" for purposes of this Section, and the Fiscal Year | 20 | | 2010 Overpayment shall be repaid by the System to the General | 21 | | Revenue Fund as soon as practicable after the certification. | 22 | | (j) After the submission of all payments for eligible | 23 | | employees from personal services line items paid from the | 24 | | General Revenue Fund in fiscal year 2011 have been made, the | 25 | | Comptroller shall provide to the System a certification of the | 26 | | sum of all fiscal year 2011 expenditures for personal services |
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| 1 | | that would have been covered by payments to the System under | 2 | | this Section if the provisions of this amendatory Act of the | 3 | | 96th General Assembly had not been enacted. Upon receipt of the | 4 | | certification, the System shall determine the amount due to the | 5 | | System based on the full rate certified by the Board under | 6 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 7 | | State's obligation under this Section. The System shall compare | 8 | | this amount due to the amount received by the System in fiscal | 9 | | year 2011 through payments under this Section. If the amount | 10 | | due is more than the amount received, the difference shall be | 11 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 12 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 13 | | under Section 1.2 of the State Pension Funds Continuing | 14 | | Appropriation Act. If the amount due is less than the amount | 15 | | received, the difference shall be termed the "Fiscal Year 2011 | 16 | | Overpayment" for purposes of this Section, and the Fiscal Year | 17 | | 2011 Overpayment shall be repaid by the System to the General | 18 | | Revenue Fund as soon as practicable after the certification. | 19 | | (k) For fiscal year 2012 only, after the submission of all | 20 | | payments for eligible employees from personal services line | 21 | | items paid from the General Revenue Fund in the fiscal year | 22 | | have been made, the Comptroller shall provide to the System a | 23 | | certification of the sum of all expenditures in the fiscal year | 24 | | for personal services. Upon receipt of the certification, the | 25 | | System shall determine the amount due to the System based on | 26 | | the full rate certified by the Board under Section 14-135.08 |
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| 1 | | for the fiscal year in order to meet the State's obligation | 2 | | under this Section. The System shall compare this amount due to | 3 | | the amount received by the System for the fiscal year. If the | 4 | | amount due is more than the amount received, the difference | 5 | | shall be termed the "Fiscal Year Shortfall" for purposes of | 6 | | this Section, and the Fiscal Year Shortfall shall be satisfied | 7 | | under Section 1.2 of the State Pension Funds Continuing | 8 | | Appropriation Act. If the amount due is less than the amount | 9 | | received, the difference shall be termed the "Fiscal Year | 10 | | Overpayment" for purposes of this Section, and the Fiscal Year | 11 | | Overpayment shall be repaid by the System to the General | 12 | | Revenue Fund as soon as practicable after the certification. | 13 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | 14 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | 15 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11.)
| 16 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 17 | | Sec. 14-135.08. To certify required State contributions. | 18 | | (a)
To certify to the Governor and to each department, on | 19 | | or before
November 15 of each year, the required rate for State | 20 | | contributions to the
System for the next State fiscal year, as | 21 | | determined under subsection (b) of
Section 14-131. The | 22 | | certification to the Governor shall include a copy of the
| 23 | | actuarial recommendations upon which the rate is based.
| 24 | | (b) The certification shall include an additional amount | 25 | | necessary to pay all principal of and interest on those general |
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| 1 | | obligation bonds due the next fiscal year authorized by Section | 2 | | 7.2(a) of the General Obligation Bond Act and issued to provide | 3 | | the proceeds deposited by the State with the System in July | 4 | | 2003, representing deposits other than amounts reserved under | 5 | | Section 7.2(c) of the General Obligation Bond Act. For State | 6 | | fiscal year 2005, the Board shall make a supplemental | 7 | | certification of the additional amount necessary to pay all | 8 | | principal of and interest on those general obligation bonds due | 9 | | in State fiscal years 2004 and 2005 authorized by Section | 10 | | 7.2(a) of the General Obligation Bond Act and issued to provide | 11 | | the proceeds deposited by the State with the System in July | 12 | | 2003, representing deposits other than amounts reserved under | 13 | | Section 7.2(c) of the General Obligation Bond Act, as soon as | 14 | | practical after the effective date of this amendatory Act of | 15 | | the 93rd General Assembly.
| 16 | | On or before May 1, 2004, the Board shall recalculate and | 17 | | recertify
to the Governor and to each department the amount of | 18 | | the required State
contribution to the System and the required | 19 | | rates for State contributions
to the System for State fiscal | 20 | | year 2005, taking into account the amounts
appropriated to and | 21 | | received by the System under subsection (d) of Section
7.2 of | 22 | | the General Obligation Bond Act.
| 23 | | On or before July 1, 2005, the Board shall recalculate and | 24 | | recertify
to the Governor and to each department the amount of | 25 | | the required State
contribution to the System and the required | 26 | | rates for State contributions
to the System for State fiscal |
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| 1 | | year 2006, taking into account the changes in required State | 2 | | contributions made by this amendatory Act of the 94th General | 3 | | Assembly.
| 4 | | On or before April 1, 2011, the Board shall recalculate and | 5 | | recertify to the Governor and to each department the amount of | 6 | | the required State contribution to the System for State fiscal | 7 | | year 2011, applying the changes made by Public Act 96-889 to | 8 | | the System's assets and liabilities as of June 30, 2009 as | 9 | | though Public Act 96-889 was approved on that date. | 10 | | The Board's certification of the required State | 11 | | contribution for Fiscal Year 2014 shall include, in addition to | 12 | | the amount otherwise calculated under this Section for FY2014, | 13 | | an amount determined by the Board to be necessary to bring the | 14 | | total contributions of the State to the system for Fiscal Years | 15 | | 1996 through 2012 up to the level that would have been | 16 | | contributed if the State had complied with the contribution | 17 | | formula as originally enacted in Public Act 88-593, plus an | 18 | | amount representing the system's lost investment earnings | 19 | | resulting from the delayed payment of those contributions. | 20 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| 21 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 22 | | Sec. 15-155. Employer contributions.
| 23 | | (a) The State of Illinois shall make contributions by | 24 | | appropriations of
amounts which, together with the other | 25 | | employer contributions from trust,
federal, and other funds, |
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| 1 | | employee contributions, income from investments,
and other | 2 | | income of this System, will be sufficient to meet the cost of
| 3 | | maintaining and administering the System on a 90% funded basis | 4 | | in accordance
with actuarial recommendations.
| 5 | | The Board shall determine the amount of State contributions | 6 | | required for
each fiscal year on the basis of the actuarial | 7 | | tables and other assumptions
adopted by the Board and the | 8 | | recommendations of the actuary, using the formula
in subsection | 9 | | (a-1).
| 10 | | (a-1) For State fiscal years 2012 through 2045, the minimum | 11 | | contribution
to the System to be made by the State for each | 12 | | fiscal year shall be an amount
determined by the System to be | 13 | | sufficient to bring the total assets of the
System up to 90% of | 14 | | the total actuarial liabilities of the System by the end of
| 15 | | State fiscal year 2045. In making these determinations, the | 16 | | required State
contribution shall be calculated each year as a | 17 | | level percentage of payroll
over the years remaining to and | 18 | | including fiscal year 2045 and shall be
determined under the | 19 | | projected unit credit actuarial cost method.
| 20 | | For State fiscal years 1996 through 2005, the State | 21 | | contribution to
the System, as a percentage of the applicable | 22 | | employee payroll, shall be
increased in equal annual increments | 23 | | so that by State fiscal year 2011, the
State is contributing at | 24 | | the rate required under this Section.
| 25 | | Notwithstanding any other provision of this Article, the | 26 | | total required State
contribution for State fiscal year 2006 is |
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| 1 | | $166,641,900.
| 2 | | Notwithstanding any other provision of this Article, the | 3 | | total required State
contribution for State fiscal year 2007 is | 4 | | $252,064,100.
| 5 | | For each of State fiscal years 2008 through 2009, the State | 6 | | contribution to
the System, as a percentage of the applicable | 7 | | employee payroll, shall be
increased in equal annual increments | 8 | | from the required State contribution for State fiscal year | 9 | | 2007, so that by State fiscal year 2011, the
State is | 10 | | contributing at the rate otherwise required under this Section.
| 11 | | Notwithstanding any other provision of this Article, the | 12 | | total required State contribution for State fiscal year 2010 is | 13 | | $702,514,000 and shall be made from the State Pensions Fund and | 14 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 15 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 16 | | share of bond sale expenses determined by the System's share of | 17 | | total bond proceeds, (ii) any amounts received from the General | 18 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 19 | | proceeds due to the issuance of discounted bonds, if | 20 | | applicable. | 21 | | Notwithstanding any other provision of this Article, the
| 22 | | total required State contribution for State fiscal year 2011 is
| 23 | | the amount recertified by the System on or before April 1, 2011 | 24 | | pursuant to Section 15-165 and shall be made from the State | 25 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 26 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
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| 1 | | less (i) the pro rata
share of bond sale expenses determined by | 2 | | the System's share of
total bond proceeds, (ii) any amounts | 3 | | received from the General
Revenue Fund in fiscal year 2011, and | 4 | | (iii) any reduction in bond
proceeds due to the issuance of | 5 | | discounted bonds, if
applicable. | 6 | | Notwithstanding any other provision of this Article, the
| 7 | | total required State contribution for State fiscal year 2014 | 8 | | shall include, in addition to the amount otherwise calculated | 9 | | under this Section for FY2014, the amount certified by the | 10 | | Board to be necessary to bring the total contributions of the | 11 | | State to the System for Fiscal Years 1996 through 2012 up to | 12 | | the level that would have been contributed if the State had | 13 | | complied throughout that period with the contribution formula | 14 | | as originally enacted in Public Act 88-593, plus an amount | 15 | | representing the System's lost investment earnings resulting | 16 | | from the delayed payment of those contributions. | 17 | | Beginning in State fiscal year 2046, the minimum State | 18 | | contribution for
each fiscal year shall be the amount needed to | 19 | | maintain the total assets of
the System at 90% of the total | 20 | | actuarial liabilities of the System.
| 21 | | Amounts received by the System pursuant to Section 25 of | 22 | | the Budget Stabilization Act or Section 8.12 of the State | 23 | | Finance Act in any fiscal year do not reduce and do not | 24 | | constitute payment of any portion of the minimum State | 25 | | contribution required under this Article in that fiscal year. | 26 | | Such amounts shall not reduce, and shall not be included in the |
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| 1 | | calculation of, the required State contributions under this | 2 | | Article in any future year until the System has reached a | 3 | | funding ratio of at least 90%. A reference in this Article to | 4 | | the "required State contribution" or any substantially similar | 5 | | term does not include or apply to any amounts payable to the | 6 | | System under Section 25 of the Budget Stabilization Act. | 7 | | Notwithstanding any other provision of this Section, the | 8 | | required State
contribution for State fiscal year 2005 and for | 9 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 10 | | under this Section and
certified under Section 15-165, shall | 11 | | not exceed an amount equal to (i) the
amount of the required | 12 | | State contribution that would have been calculated under
this | 13 | | Section for that fiscal year if the System had not received any | 14 | | payments
under subsection (d) of Section 7.2 of the General | 15 | | Obligation Bond Act, minus
(ii) the portion of the State's | 16 | | total debt service payments for that fiscal
year on the bonds | 17 | | issued in fiscal year 2003 for the purposes of that Section | 18 | | 7.2, as determined
and certified by the Comptroller, that is | 19 | | the same as the System's portion of
the total moneys | 20 | | distributed under subsection (d) of Section 7.2 of the General
| 21 | | Obligation Bond Act. In determining this maximum for State | 22 | | fiscal years 2008 through 2010, however, the amount referred to | 23 | | in item (i) shall be increased, as a percentage of the | 24 | | applicable employee payroll, in equal increments calculated | 25 | | from the sum of the required State contribution for State | 26 | | fiscal year 2007 plus the applicable portion of the State's |
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| 1 | | total debt service payments for fiscal year 2007 on the bonds | 2 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 3 | | the General
Obligation Bond Act, so that, by State fiscal year | 4 | | 2011, the
State is contributing at the rate otherwise required | 5 | | under this Section.
| 6 | | (b) If an employee is paid from trust or federal funds, the | 7 | | employer
shall pay to the Board contributions from those funds | 8 | | which are
sufficient to cover the accruing normal costs on | 9 | | behalf of the employee.
However, universities having employees | 10 | | who are compensated out of local
auxiliary funds, income funds, | 11 | | or service enterprise funds are not required
to pay such | 12 | | contributions on behalf of those employees. The local auxiliary
| 13 | | funds, income funds, and service enterprise funds of | 14 | | universities shall not be
considered trust funds for the | 15 | | purpose of this Article, but funds of alumni
associations, | 16 | | foundations, and athletic associations which are affiliated | 17 | | with
the universities included as employers under this Article | 18 | | and other employers
which do not receive State appropriations | 19 | | are considered to be trust funds for
the purpose of this | 20 | | Article.
| 21 | | (b-1) The City of Urbana and the City of Champaign shall | 22 | | each make
employer contributions to this System for their | 23 | | respective firefighter
employees who participate in this | 24 | | System pursuant to subsection (h) of Section
15-107. The rate | 25 | | of contributions to be made by those municipalities shall
be | 26 | | determined annually by the Board on the basis of the actuarial |
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| 1 | | assumptions
adopted by the Board and the recommendations of the | 2 | | actuary, and shall be
expressed as a percentage of salary for | 3 | | each such employee. The Board shall
certify the rate to the | 4 | | affected municipalities as soon as may be practical.
The | 5 | | employer contributions required under this subsection shall be | 6 | | remitted by
the municipality to the System at the same time and | 7 | | in the same manner as
employee contributions.
| 8 | | (c) Through State fiscal year 1995: The total employer | 9 | | contribution shall
be apportioned among the various funds of | 10 | | the State and other employers,
whether trust, federal, or other | 11 | | funds, in accordance with actuarial procedures
approved by the | 12 | | Board. State of Illinois contributions for employers receiving
| 13 | | State appropriations for personal services shall be payable | 14 | | from appropriations
made to the employers or to the System. The | 15 | | contributions for Class I
community colleges covering earnings | 16 | | other than those paid from trust and
federal funds, shall be | 17 | | payable solely from appropriations to the Illinois
Community | 18 | | College Board or the System for employer contributions.
| 19 | | (d) Beginning in State fiscal year 1996, the required State | 20 | | contributions
to the System shall be appropriated directly to | 21 | | the System and shall be payable
through vouchers issued in | 22 | | accordance with subsection (c) of Section 15-165, except as | 23 | | provided in subsection (g).
| 24 | | (e) The State Comptroller shall draw warrants payable to | 25 | | the System upon
proper certification by the System or by the | 26 | | employer in accordance with the
appropriation laws and this |
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| 1 | | Code.
| 2 | | (f) Normal costs under this Section means liability for
| 3 | | pensions and other benefits which accrues to the System because | 4 | | of the
credits earned for service rendered by the participants | 5 | | during the
fiscal year and expenses of administering the | 6 | | System, but shall not
include the principal of or any | 7 | | redemption premium or interest on any bonds
issued by the Board | 8 | | or any expenses incurred or deposits required in
connection | 9 | | therewith.
| 10 | | (g) If the amount of a participant's earnings for any | 11 | | academic year used to determine the final rate of earnings, | 12 | | determined on a full-time equivalent basis, exceeds the amount | 13 | | of his or her earnings with the same employer for the previous | 14 | | academic year, determined on a full-time equivalent basis, by | 15 | | more than 6%, the participant's employer shall pay to the | 16 | | System, in addition to all other payments required under this | 17 | | Section and in accordance with guidelines established by the | 18 | | System, the present value of the increase in benefits resulting | 19 | | from the portion of the increase in earnings that is in excess | 20 | | of 6%. This present value shall be computed by the System on | 21 | | the basis of the actuarial assumptions and tables used in the | 22 | | most recent actuarial valuation of the System that is available | 23 | | at the time of the computation. The System may require the | 24 | | employer to provide any pertinent information or | 25 | | documentation. | 26 | | Whenever it determines that a payment is or may be required |
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| 1 | | under this subsection (g), the System shall calculate the | 2 | | amount of the payment and bill the employer for that amount. | 3 | | The bill shall specify the calculations used to determine the | 4 | | amount due. If the employer disputes the amount of the bill, it | 5 | | may, within 30 days after receipt of the bill, apply to the | 6 | | System in writing for a recalculation. The application must | 7 | | specify in detail the grounds of the dispute and, if the | 8 | | employer asserts that the calculation is subject to subsection | 9 | | (h) or (i) of this Section, must include an affidavit setting | 10 | | forth and attesting to all facts within the employer's | 11 | | knowledge that are pertinent to the applicability of subsection | 12 | | (h) or (i). Upon receiving a timely application for | 13 | | recalculation, the System shall review the application and, if | 14 | | appropriate, recalculate the amount due.
| 15 | | The employer contributions required under this subsection | 16 | | (f) may be paid in the form of a lump sum within 90 days after | 17 | | receipt of the bill. If the employer contributions are not paid | 18 | | within 90 days after receipt of the bill, then interest will be | 19 | | charged at a rate equal to the System's annual actuarially | 20 | | assumed rate of return on investment compounded annually from | 21 | | the 91st day after receipt of the bill. Payments must be | 22 | | concluded within 3 years after the employer's receipt of the | 23 | | bill. | 24 | | (h) This subsection (h) applies only to payments made or | 25 | | salary increases given on or after June 1, 2005 but before July | 26 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
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| 1 | | require the System to refund any payments received before July | 2 | | 31, 2006 (the effective date of Public Act 94-1057). | 3 | | When assessing payment for any amount due under subsection | 4 | | (g), the System shall exclude earnings increases paid to | 5 | | participants under contracts or collective bargaining | 6 | | agreements entered into, amended, or renewed before June 1, | 7 | | 2005.
| 8 | | When assessing payment for any amount due under subsection | 9 | | (g), the System shall exclude earnings increases paid to a | 10 | | participant at a time when the participant is 10 or more years | 11 | | from retirement eligibility under Section 15-135.
| 12 | | When assessing payment for any amount due under subsection | 13 | | (g), the System shall exclude earnings increases resulting from | 14 | | overload work, including a contract for summer teaching, or | 15 | | overtime when the employer has certified to the System, and the | 16 | | System has approved the certification, that: (i) in the case of | 17 | | overloads (A) the overload work is for the sole purpose of | 18 | | academic instruction in excess of the standard number of | 19 | | instruction hours for a full-time employee occurring during the | 20 | | academic year that the overload is paid and (B) the earnings | 21 | | increases are equal to or less than the rate of pay for | 22 | | academic instruction computed using the participant's current | 23 | | salary rate and work schedule; and (ii) in the case of | 24 | | overtime, the overtime was necessary for the educational | 25 | | mission. | 26 | | When assessing payment for any amount due under subsection |
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| 1 | | (g), the System shall exclude any earnings increase resulting | 2 | | from (i) a promotion for which the employee moves from one | 3 | | classification to a higher classification under the State | 4 | | Universities Civil Service System, (ii) a promotion in academic | 5 | | rank for a tenured or tenure-track faculty position, or (iii) a | 6 | | promotion that the Illinois Community College Board has | 7 | | recommended in accordance with subsection (k) of this Section. | 8 | | These earnings increases shall be excluded only if the | 9 | | promotion is to a position that has existed and been filled by | 10 | | a member for no less than one complete academic year and the | 11 | | earnings increase as a result of the promotion is an increase | 12 | | that results in an amount no greater than the average salary | 13 | | paid for other similar positions. | 14 | | (i) When assessing payment for any amount due under | 15 | | subsection (g), the System shall exclude any salary increase | 16 | | described in subsection (h) of this Section given on or after | 17 | | July 1, 2011 but before July 1, 2014 under a contract or | 18 | | collective bargaining agreement entered into, amended, or | 19 | | renewed on or after June 1, 2005 but before July 1, 2011. | 20 | | Notwithstanding any other provision of this Section, any | 21 | | payments made or salary increases given after June 30, 2014 | 22 | | shall be used in assessing payment for any amount due under | 23 | | subsection (g) of this Section.
| 24 | | (j) The System shall prepare a report and file copies of | 25 | | the report with the Governor and the General Assembly by | 26 | | January 1, 2007 that contains all of the following information: |
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| 1 | | (1) The number of recalculations required by the | 2 | | changes made to this Section by Public Act 94-1057 for each | 3 | | employer. | 4 | | (2) The dollar amount by which each employer's | 5 | | contribution to the System was changed due to | 6 | | recalculations required by Public Act 94-1057. | 7 | | (3) The total amount the System received from each | 8 | | employer as a result of the changes made to this Section by | 9 | | Public Act 94-4. | 10 | | (4) The increase in the required State contribution | 11 | | resulting from the changes made to this Section by Public | 12 | | Act 94-1057. | 13 | | (k) The Illinois Community College Board shall adopt rules | 14 | | for recommending lists of promotional positions submitted to | 15 | | the Board by community colleges and for reviewing the | 16 | | promotional lists on an annual basis. When recommending | 17 | | promotional lists, the Board shall consider the similarity of | 18 | | the positions submitted to those positions recognized for State | 19 | | universities by the State Universities Civil Service System. | 20 | | The Illinois Community College Board shall file a copy of its | 21 | | findings with the System. The System shall consider the | 22 | | findings of the Illinois Community College Board when making | 23 | | determinations under this Section. The System shall not exclude | 24 | | any earnings increases resulting from a promotion when the | 25 | | promotion was not submitted by a community college. Nothing in | 26 | | this subsection (k) shall require any community college to |
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| 1 | | submit any information to the Community College Board.
| 2 | | (l) For purposes of determining the required State | 3 | | contribution to the System, the value of the System's assets | 4 | | shall be equal to the actuarial value of the System's assets, | 5 | | which shall be calculated as follows: | 6 | | As of June 30, 2008, the actuarial value of the System's | 7 | | assets shall be equal to the market value of the assets as of | 8 | | that date. In determining the actuarial value of the System's | 9 | | assets for fiscal years after June 30, 2008, any actuarial | 10 | | gains or losses from investment return incurred in a fiscal | 11 | | year shall be recognized in equal annual amounts over the | 12 | | 5-year period following that fiscal year. | 13 | | (m) For purposes of determining the required State | 14 | | contribution to the system for a particular year, the actuarial | 15 | | value of assets shall be assumed to earn a rate of return equal | 16 | | to the system's actuarially assumed rate of return. | 17 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 18 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 19 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
| 20 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 21 | | Sec. 15-165. To certify amounts and submit vouchers.
| 22 | | (a) The Board shall certify to the Governor on or before | 23 | | November 15 of each
year the appropriation required from State | 24 | | funds for the purposes of this
System for the following fiscal | 25 | | year. The certification shall include a copy
of the actuarial |
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| 1 | | recommendations upon which it is based.
| 2 | | On or before May 1, 2004, the Board shall recalculate and | 3 | | recertify to
the Governor the amount of the required State | 4 | | contribution to the System for
State fiscal year 2005, taking | 5 | | into account the amounts appropriated to and
received by the | 6 | | System under subsection (d) of Section 7.2 of the General
| 7 | | Obligation Bond Act.
| 8 | | On or before July 1, 2005, the Board shall recalculate and | 9 | | recertify
to the Governor the amount of the required State
| 10 | | contribution to the System for State fiscal year 2006, taking | 11 | | into account the changes in required State contributions made | 12 | | by this amendatory Act of the 94th General Assembly.
| 13 | | On or before April 1, 2011, 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 2011, applying | 16 | | the changes made by Public Act 96-889 to the System's assets | 17 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 18 | | was approved on that date. | 19 | | The Board's certification of the required State | 20 | | contribution for Fiscal Year 2014 shall include, in addition to | 21 | | the amount otherwise calculated under this Section for FY2014, | 22 | | an amount determined by the Board to be necessary to bring the | 23 | | total contributions of the State to the system for Fiscal Years | 24 | | 1996 through 2012 up to the level that would have been | 25 | | contributed if the State had complied with the contribution | 26 | | formula as originally enacted in Public Act 88-593, plus an |
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| 1 | | amount representing the system's lost investment earnings | 2 | | resulting from the delayed payment of those contributions. | 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 |
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| 1 | | shall be paid
from the General Revenue Fund under the | 2 | | continuing appropriation authority
provided in Section 1.1 of | 3 | | the State Pension Funds Continuing Appropriation
Act.
| 4 | | (d) So long as the payments received are the full amount | 5 | | lawfully
vouchered under this Section, payments received by the | 6 | | System under this
Section shall be applied first toward the | 7 | | employer contribution to the
self-managed plan established | 8 | | under Section 15-158.2. Payments shall be
applied second toward | 9 | | the employer's portion of the normal costs of the System,
as | 10 | | defined in subsection (f) of Section 15-155. The balance shall | 11 | | be applied
toward the unfunded actuarial liabilities of the | 12 | | System.
| 13 | | (e) In the event that the System does not receive, as a | 14 | | result of
legislative enactment or otherwise, payments | 15 | | sufficient to
fully fund the employer contribution to the | 16 | | self-managed plan
established under Section 15-158.2 and to | 17 | | fully fund that portion of the
employer's portion of the normal | 18 | | costs of the System, as calculated in
accordance with Section | 19 | | 15-155(a-1), then any payments received shall be
applied | 20 | | proportionately to the optional retirement program established | 21 | | under
Section 15-158.2 and to the employer's portion of the | 22 | | normal costs of the
System, as calculated in accordance with | 23 | | Section 15-155(a-1).
| 24 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| 25 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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| 1 | | Sec. 16-158. Contributions by State and other employing | 2 | | units.
| 3 | | (a) The State shall make contributions to the System by | 4 | | means of
appropriations from the Common School Fund and other | 5 | | State funds of amounts
which, together with other employer | 6 | | contributions, employee contributions,
investment income, and | 7 | | other income, will be sufficient to meet the cost of
| 8 | | maintaining and administering the System on a 90% funded basis | 9 | | in accordance
with actuarial recommendations.
| 10 | | The Board shall determine the amount of State contributions | 11 | | required for
each fiscal year on the basis of the actuarial | 12 | | tables and other assumptions
adopted by the Board and the | 13 | | recommendations of the actuary, using the formula
in subsection | 14 | | (b-3).
| 15 | | (a-1) Annually, on or before November 15, the Board shall | 16 | | certify to the
Governor the amount of the required State | 17 | | contribution for the coming fiscal
year. The certification | 18 | | shall include a copy of the actuarial recommendations
upon | 19 | | which it is based.
| 20 | | On or before May 1, 2004, the Board shall recalculate and | 21 | | recertify to
the Governor the amount of the required State | 22 | | contribution to the System for
State fiscal year 2005, taking | 23 | | into account the amounts appropriated to and
received by the | 24 | | System under subsection (d) of Section 7.2 of the General
| 25 | | Obligation Bond Act.
| 26 | | On or before July 1, 2005 April 1, 2011 , the Board shall |
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| 1 | | recalculate and recertify
to the Governor the amount of the | 2 | | required State
contribution to the System for State fiscal year | 3 | | 2006, taking into account the changes in required State | 4 | | contributions made by this amendatory Act of the 94th General | 5 | | Assembly.
| 6 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 7 | | recalculate and recertify to the Governor the amount of the | 8 | | required State contribution to the System for State fiscal year | 9 | | 2011, applying the changes made by Public Act 96-889 to the | 10 | | System's assets and liabilities as of June 30, 2009 as though | 11 | | Public Act 96-889 was approved on that date. | 12 | | The Board's certification of the required State | 13 | | contribution for Fiscal Year 2014 shall include, in addition to | 14 | | the amount otherwise calculated under this Section for FY2014, | 15 | | an amount determined by the Board to be necessary to bring the | 16 | | total contributions of the State to the system for Fiscal Years | 17 | | 1996 through 2012 up to the level that would have been | 18 | | contributed if the State had complied with the contribution | 19 | | formula as originally enacted in Public Act 88-593, plus an | 20 | | amount representing the system's lost investment earnings | 21 | | resulting from the delayed payment of those contributions. | 22 | | (b) Through State fiscal year 1995, the State contributions | 23 | | shall be
paid to the System in accordance with Section 18-7 of | 24 | | the School Code.
| 25 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 26 | | of each month,
or as soon thereafter as may be practicable, the |
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| 1 | | Board shall submit vouchers
for payment of State contributions | 2 | | to the System, in a total monthly amount of
one-twelfth of the | 3 | | required annual State contribution certified under
subsection | 4 | | (a-1).
From the
effective date of this amendatory Act of the | 5 | | 93rd General Assembly
through June 30, 2004, the Board shall | 6 | | not submit vouchers for the
remainder of fiscal year 2004 in | 7 | | excess of the fiscal year 2004
certified contribution amount | 8 | | determined under this Section
after taking into consideration | 9 | | the transfer to the System
under subsection (a) of Section | 10 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 11 | | the State Comptroller and
Treasurer by warrants drawn on the | 12 | | funds appropriated to the System for that
fiscal year.
| 13 | | If in any month the amount remaining unexpended from all | 14 | | other appropriations
to the System for the applicable fiscal | 15 | | year (including the appropriations to
the System under Section | 16 | | 8.12 of the State Finance Act and Section 1 of the
State | 17 | | Pension Funds Continuing Appropriation Act) is less than the | 18 | | amount
lawfully vouchered under this subsection, the | 19 | | difference shall be paid from the
Common School Fund under the | 20 | | continuing appropriation authority provided in
Section 1.1 of | 21 | | the State Pension Funds Continuing Appropriation Act.
| 22 | | (b-2) Allocations from the Common School Fund apportioned | 23 | | to school
districts not coming under this System shall not be | 24 | | diminished or affected by
the provisions of this Article.
| 25 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 26 | | contribution
to the System to be made by the State for each |
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| 1 | | fiscal year shall be an amount
determined by the System to be | 2 | | sufficient to bring the total assets of the
System up to 90% of | 3 | | the total actuarial liabilities of the System by the end of
| 4 | | State fiscal year 2045. In making these determinations, the | 5 | | required State
contribution shall be calculated each year as a | 6 | | level percentage of payroll
over the years remaining to and | 7 | | including fiscal year 2045 and shall be
determined under the | 8 | | projected unit credit actuarial cost method.
| 9 | | For State fiscal years 1996 through 2005, the State | 10 | | contribution to the
System, as a percentage of the applicable | 11 | | employee payroll, shall be increased
in equal annual increments | 12 | | so that by State fiscal year 2011, the State is
contributing at | 13 | | the rate required under this Section; except that in the
| 14 | | following specified State fiscal years, the State contribution | 15 | | to the System
shall not be less than the following indicated | 16 | | percentages of the applicable
employee payroll, even if the | 17 | | indicated percentage will produce a State
contribution in | 18 | | excess of the amount otherwise required under this subsection
| 19 | | and subsection (a), and notwithstanding any contrary | 20 | | certification made under
subsection (a-1) before the effective | 21 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 22 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 23 | | 2003; and
13.56% in FY 2004.
| 24 | | Notwithstanding any other provision of this Article, the | 25 | | total required State
contribution for State fiscal year 2006 is | 26 | | $534,627,700.
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| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution for State fiscal year 2007 is | 3 | | $738,014,500.
| 4 | | For each of State fiscal years 2008 through 2009, the State | 5 | | contribution to
the System, as a percentage of the applicable | 6 | | employee payroll, shall be
increased in equal annual increments | 7 | | from the required State contribution for State fiscal year | 8 | | 2007, so that by State fiscal year 2011, the
State is | 9 | | contributing at the rate otherwise required under this Section.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State contribution for State fiscal year 2010 is | 12 | | $2,089,268,000 and shall be made from the proceeds of bonds | 13 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 14 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 15 | | expenses determined by the System's share of total bond | 16 | | proceeds, (ii) any amounts received from the Common School Fund | 17 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 18 | | due to the issuance of discounted bonds, if applicable. | 19 | | Notwithstanding any other provision of this Article, the
| 20 | | total required State contribution for State fiscal year 2011 is
| 21 | | the amount recertified by the System on or before April 1, 2011 | 22 | | pursuant to subsection (a-1) of this Section and shall be made | 23 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 24 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 25 | | pro rata share of bond sale
expenses determined by the System's | 26 | | share of total bond
proceeds, (ii) any amounts received from |
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| 1 | | the Common School Fund
in fiscal year 2011, and (iii) any | 2 | | reduction in bond proceeds
due to the issuance of discounted | 3 | | bonds, if applicable. This amount shall include, in addition to | 4 | | the amount certified by the System, an amount necessary to meet | 5 | | employer contributions required by the State as an employer | 6 | | under paragraph (e) of this Section, which may also be used by | 7 | | the System for contributions required by paragraph (a) of | 8 | | Section 16-127. | 9 | | Notwithstanding any other provision of this Article, the
| 10 | | total required State contribution for State fiscal year 2014 | 11 | | shall include, in addition to the amount otherwise calculated | 12 | | under this Section for FY2014, the amount certified by the | 13 | | Board to be necessary to bring the total contributions of the | 14 | | State to the System for Fiscal Years 1996 through 2012 up to | 15 | | the level that would have been contributed if the State had | 16 | | complied throughout that period with the contribution formula | 17 | | as originally enacted in Public Act 88-593, plus an amount | 18 | | representing the System's lost investment earnings resulting | 19 | | from the delayed payment of those contributions. | 20 | | Beginning in State fiscal year 2046, the minimum State | 21 | | contribution for
each fiscal year shall be the amount needed to | 22 | | maintain the total assets of
the System at 90% of the total | 23 | | actuarial liabilities of the System.
| 24 | | Amounts received by the System pursuant to Section 25 of | 25 | | the Budget Stabilization Act or Section 8.12 of the State | 26 | | Finance Act in any fiscal year do not reduce and do not |
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| 1 | | constitute payment of any portion of the minimum State | 2 | | contribution required under this Article in that fiscal year. | 3 | | Such amounts shall not reduce, and shall not be included in the | 4 | | calculation of, the required State contributions under this | 5 | | Article in any future year until the System has reached a | 6 | | funding ratio of at least 90%. A reference in this Article to | 7 | | the "required State contribution" or any substantially similar | 8 | | term does not include or apply to any amounts payable to the | 9 | | System under Section 25 of the Budget Stabilization Act. | 10 | | Notwithstanding any other provision of this Section, the | 11 | | required State
contribution for State fiscal year 2005 and for | 12 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 13 | | under this Section and
certified under subsection (a-1), shall | 14 | | not exceed an amount equal to (i) the
amount of the required | 15 | | State contribution that would have been calculated under
this | 16 | | Section for that fiscal year if the System had not received any | 17 | | payments
under subsection (d) of Section 7.2 of the General | 18 | | Obligation Bond Act, minus
(ii) the portion of the State's | 19 | | total debt service payments for that fiscal
year on the bonds | 20 | | issued in fiscal year 2003 for the purposes of that Section | 21 | | 7.2, as determined
and certified by the Comptroller, that is | 22 | | the same as the System's portion of
the total moneys | 23 | | distributed under subsection (d) of Section 7.2 of the General
| 24 | | Obligation Bond Act. In determining this maximum for State | 25 | | fiscal years 2008 through 2010, however, the amount referred to | 26 | | in item (i) shall be increased, as a percentage of the |
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| 1 | | applicable employee payroll, in equal increments calculated | 2 | | from the sum of the required State contribution for State | 3 | | fiscal year 2007 plus the applicable portion of the State's | 4 | | total debt service payments for fiscal year 2007 on the bonds | 5 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 6 | | the General
Obligation Bond Act, so that, by State fiscal year | 7 | | 2011, the
State is contributing at the rate otherwise required | 8 | | under this Section.
| 9 | | (c) Payment of the required State contributions and of all | 10 | | pensions,
retirement annuities, death benefits, refunds, and | 11 | | other benefits granted
under or assumed by this System, and all | 12 | | expenses in connection with the
administration and operation | 13 | | thereof, are obligations of the State.
| 14 | | If members are paid from special trust or federal funds | 15 | | which are
administered by the employing unit, whether school | 16 | | district or other
unit, the employing unit shall pay to the | 17 | | System from such
funds the full accruing retirement costs based | 18 | | upon that
service, as determined by the System. Employer | 19 | | contributions, based on
salary paid to members from federal | 20 | | funds, may be forwarded by the distributing
agency of the State | 21 | | of Illinois to the System prior to allocation, in an
amount | 22 | | determined in accordance with guidelines established by such
| 23 | | agency and the System.
| 24 | | (d) Effective July 1, 1986, any employer of a teacher as | 25 | | defined in
paragraph (8) of Section 16-106 shall pay the | 26 | | employer's normal cost
of benefits based upon the teacher's |
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| 1 | | service, in addition to
employee contributions, as determined | 2 | | by the System. Such employer
contributions shall be forwarded | 3 | | monthly in accordance with guidelines
established by the | 4 | | System.
| 5 | | However, with respect to benefits granted under Section | 6 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 7 | | of Section 16-106, the
employer's contribution shall be 12% | 8 | | (rather than 20%) of the member's
highest annual salary rate | 9 | | for each year of creditable service granted, and
the employer | 10 | | shall also pay the required employee contribution on behalf of
| 11 | | the teacher. For the purposes of Sections 16-133.4 and | 12 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 13 | | 16-106 who is serving in that capacity
while on leave of | 14 | | absence from another employer under this Article shall not
be | 15 | | considered an employee of the employer from which the teacher | 16 | | is on leave.
| 17 | | (e) Beginning July 1, 1998, every employer of a teacher
| 18 | | shall pay to the System an employer contribution computed as | 19 | | follows:
| 20 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 21 | | employer
contribution shall be equal to 0.3% of each | 22 | | teacher's salary.
| 23 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 24 | | contribution shall be equal to 0.58% of each teacher's | 25 | | salary.
| 26 | | The school district or other employing unit may pay these |
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| 1 | | employer
contributions out of any source of funding available | 2 | | for that purpose and
shall forward the contributions to the | 3 | | System on the schedule established
for the payment of member | 4 | | contributions.
| 5 | | These employer contributions are intended to offset a | 6 | | portion of the cost
to the System of the increases in | 7 | | retirement benefits resulting from this
amendatory Act of 1998.
| 8 | | Each employer of teachers is entitled to a credit against | 9 | | the contributions
required under this subsection (e) with | 10 | | respect to salaries paid to teachers
for the period January 1, | 11 | | 2002 through June 30, 2003, equal to the amount paid
by that | 12 | | employer under subsection (a-5) of Section 6.6 of the State | 13 | | Employees
Group Insurance Act of 1971 with respect to salaries | 14 | | paid to teachers for that
period.
| 15 | | The additional 1% employee contribution required under | 16 | | Section 16-152 by
this amendatory Act of 1998 is the | 17 | | responsibility of the teacher and not the
teacher's employer, | 18 | | unless the employer agrees, through collective bargaining
or | 19 | | otherwise, to make the contribution on behalf of the teacher.
| 20 | | If an employer is required by a contract in effect on May | 21 | | 1, 1998 between the
employer and an employee organization to | 22 | | pay, on behalf of all its full-time
employees
covered by this | 23 | | Article, all mandatory employee contributions required under
| 24 | | this Article, then the employer shall be excused from paying | 25 | | the employer
contribution required under this subsection (e) | 26 | | for the balance of the term
of that contract. The employer and |
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| 1 | | the employee organization shall jointly
certify to the System | 2 | | the existence of the contractual requirement, in such
form as | 3 | | the System may prescribe. This exclusion shall cease upon the
| 4 | | termination, extension, or renewal of the contract at any time | 5 | | after May 1,
1998.
| 6 | | (f) If the amount of a teacher's salary for any school year | 7 | | used to determine final average salary exceeds the member's | 8 | | annual full-time salary rate with the same employer for the | 9 | | previous school year by more than 6%, the teacher's employer | 10 | | shall pay to the System, in addition to all other payments | 11 | | required under this Section and in accordance with guidelines | 12 | | established by the System, the present value of the increase in | 13 | | benefits resulting from the portion of the increase in salary | 14 | | that is in excess of 6%. This present value shall be computed | 15 | | by the System on the basis of the actuarial assumptions and | 16 | | tables used in the most recent actuarial valuation of the | 17 | | System that is available at the time of the computation. If a | 18 | | teacher's salary for the 2005-2006 school year is used to | 19 | | determine final average salary under this subsection (f), then | 20 | | the changes made to this subsection (f) by Public Act 94-1057 | 21 | | shall apply in calculating whether the increase in his or her | 22 | | salary is in excess of 6%. For the purposes of this Section, | 23 | | change in employment under Section 10-21.12 of the School Code | 24 | | on or after June 1, 2005 shall constitute a change in employer. | 25 | | The System may require the employer to provide any pertinent | 26 | | information or documentation.
The changes made to this |
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| 1 | | subsection (f) by this amendatory Act of the 94th General | 2 | | Assembly apply without regard to whether the teacher was in | 3 | | service on or after its effective date.
| 4 | | Whenever it determines that a payment is or may be required | 5 | | under this subsection, the System shall calculate the amount of | 6 | | the payment and bill the employer for that amount. The bill | 7 | | shall specify the calculations used to determine the amount | 8 | | due. If the employer disputes the amount of the bill, it may, | 9 | | within 30 days after receipt of the bill, apply to the System | 10 | | in writing for a recalculation. The application must specify in | 11 | | detail the grounds of the dispute and, if the employer asserts | 12 | | that the calculation is subject to subsection (g) or (h) of | 13 | | this Section, must include an affidavit setting forth and | 14 | | attesting to all facts within the employer's knowledge that are | 15 | | pertinent to the applicability of that subsection. Upon | 16 | | receiving a timely application for recalculation, the System | 17 | | shall review the application and, if appropriate, recalculate | 18 | | the amount due.
| 19 | | The employer contributions required under this subsection | 20 | | (f) may be paid in the form of a lump sum within 90 days after | 21 | | receipt of the bill. If the employer contributions are not paid | 22 | | within 90 days after receipt of the bill, then interest will be | 23 | | charged at a rate equal to the System's annual actuarially | 24 | | assumed rate of return on investment compounded annually from | 25 | | the 91st day after receipt of the bill. Payments must be | 26 | | concluded within 3 years after the employer's receipt of the |
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| 1 | | bill.
| 2 | | (g) This subsection (g) applies only to payments made or | 3 | | salary increases given on or after June 1, 2005 but before July | 4 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 5 | | require the System to refund any payments received before
July | 6 | | 31, 2006 (the effective date of Public Act 94-1057). | 7 | | When assessing payment for any amount due under subsection | 8 | | (f), the System shall exclude salary increases paid to teachers | 9 | | under contracts or collective bargaining agreements entered | 10 | | into, amended, or renewed before June 1, 2005.
| 11 | | When assessing payment for any amount due under subsection | 12 | | (f), the System shall exclude salary increases paid to a | 13 | | teacher at a time when the teacher is 10 or more years from | 14 | | retirement eligibility under Section 16-132 or 16-133.2.
| 15 | | When assessing payment for any amount due under subsection | 16 | | (f), the System shall exclude salary increases resulting from | 17 | | overload work, including summer school, when the school | 18 | | district has certified to the System, and the System has | 19 | | approved the certification, that (i) the overload work is for | 20 | | the sole purpose of classroom instruction in excess of the | 21 | | standard number of classes for a full-time teacher in a school | 22 | | district during a school year and (ii) the salary increases are | 23 | | equal to or less than the rate of pay for classroom instruction | 24 | | computed on the teacher's current salary and work schedule.
| 25 | | When assessing payment for any amount due under subsection | 26 | | (f), the System shall exclude a salary increase resulting from |
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| 1 | | a promotion (i) for which the employee is required to hold a | 2 | | certificate or supervisory endorsement issued by the State | 3 | | Teacher Certification Board that is a different certification | 4 | | or supervisory endorsement than is required for the teacher's | 5 | | previous position and (ii) to a position that has existed and | 6 | | been filled by a member for no less than one complete academic | 7 | | year and the salary increase from the promotion is an increase | 8 | | that results in an amount no greater than the lesser of the | 9 | | average salary paid for other similar positions in the district | 10 | | requiring the same certification or the amount stipulated in | 11 | | the collective bargaining agreement for a similar position | 12 | | requiring the same certification.
| 13 | | When assessing payment for any amount due under subsection | 14 | | (f), the System shall exclude any payment to the teacher from | 15 | | the State of Illinois or the State Board of Education over | 16 | | which the employer does not have discretion, notwithstanding | 17 | | that the payment is included in the computation of final | 18 | | average salary.
| 19 | | (h) When assessing payment for any amount due under | 20 | | subsection (f), the System shall exclude any salary increase | 21 | | described in subsection (g) of this Section given on or after | 22 | | July 1, 2011 but before July 1, 2014 under a contract or | 23 | | collective bargaining agreement entered into, amended, or | 24 | | renewed on or after June 1, 2005 but before July 1, 2011. | 25 | | Notwithstanding any other provision of this Section, any | 26 | | payments made or salary increases given after June 30, 2014 |
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| 1 | | shall be used in assessing payment for any amount due under | 2 | | subsection (f) of this Section.
| 3 | | (i) The System shall prepare a report and file copies of | 4 | | the report with the Governor and the General Assembly by | 5 | | January 1, 2007 that contains all of the following information: | 6 | | (1) The number of recalculations required by the | 7 | | changes made to this Section by Public Act 94-1057 for each | 8 | | employer. | 9 | | (2) The dollar amount by which each employer's | 10 | | contribution to the System was changed due to | 11 | | recalculations required by Public Act 94-1057. | 12 | | (3) The total amount the System received from each | 13 | | employer as a result of the changes made to this Section by | 14 | | Public Act 94-4. | 15 | | (4) The increase in the required State contribution | 16 | | resulting from the changes made to this Section by Public | 17 | | Act 94-1057.
| 18 | | (j) For purposes of determining the required State | 19 | | contribution to the System, the value of the System's assets | 20 | | shall be equal to the actuarial value of the System's assets, | 21 | | which shall be calculated as follows: | 22 | | As of June 30, 2008, the actuarial value of the System's | 23 | | assets shall be equal to the market value of the assets as of | 24 | | that date. In determining the actuarial value of the System's | 25 | | assets for fiscal years after June 30, 2008, any actuarial | 26 | | gains or losses from investment return incurred in a fiscal |
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| 1 | | year shall be recognized in equal annual amounts over the | 2 | | 5-year period following that fiscal year. | 3 | | (k) For purposes of determining the required State | 4 | | contribution to the system for a particular year, the actuarial | 5 | | value of assets shall be assumed to earn a rate of return equal | 6 | | to the system's actuarially assumed rate of return. | 7 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 8 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 9 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
| 10 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 11 | | Sec. 18-131. Financing; employer contributions.
| 12 | | (a) The State of Illinois shall make contributions to this | 13 | | System by
appropriations of the amounts which, together with | 14 | | the contributions of
participants, net earnings on | 15 | | investments, and other income, will meet the
costs of | 16 | | maintaining and administering this System on a 90% funded basis | 17 | | in
accordance with actuarial recommendations.
| 18 | | (b) The Board shall determine the amount of State | 19 | | contributions
required for each fiscal year on the basis of the | 20 | | actuarial tables and other
assumptions adopted by the Board and | 21 | | the prescribed rate of interest, using
the formula in | 22 | | subsection (c).
| 23 | | (c) For State fiscal years 2012 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 |
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| 1 | | sufficient to bring the total assets of the
System up to 90% of | 2 | | the total actuarial liabilities of the System by the end of
| 3 | | State fiscal year 2045. In making these determinations, the | 4 | | required State
contribution shall be calculated each year as a | 5 | | level percentage of payroll
over the years remaining to and | 6 | | including fiscal year 2045 and shall be
determined under the | 7 | | projected unit credit actuarial cost method.
| 8 | | For State fiscal years 1996 through 2005, the State | 9 | | contribution to
the System, as a percentage of the applicable | 10 | | employee payroll, shall be
increased in equal annual increments | 11 | | so that by State fiscal year 2011, the
State is contributing at | 12 | | the rate required under this Section.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State
contribution for State fiscal year 2006 is | 15 | | $29,189,400.
| 16 | | Notwithstanding any other provision of this Article, the | 17 | | total required State
contribution for State fiscal year 2007 is | 18 | | $35,236,800.
| 19 | | For each of State fiscal years 2008 through 2009, 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 | | Notwithstanding any other provision of this Article, the | 26 | | total required State contribution for State fiscal year 2010 is |
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| 1 | | $78,832,000 and shall be made from the proceeds of bonds sold | 2 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 3 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 4 | | expenses determined by the System's share of total bond | 5 | | proceeds, (ii) any amounts received from the General Revenue | 6 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 7 | | proceeds due to the issuance of discounted bonds, if | 8 | | applicable. | 9 | | Notwithstanding any other provision of this Article, the | 10 | | total required State contribution for State fiscal year 2011 is
| 11 | | the amount recertified by the System on or before April 1, 2011 | 12 | | pursuant to Section 18-140 and shall be made from the proceeds | 13 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 14 | | the General
Obligation Bond Act, less (i) the pro rata share of | 15 | | bond sale
expenses determined by the System's share of total | 16 | | bond
proceeds, (ii) any amounts received from the General | 17 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 18 | | bond
proceeds due to the issuance of discounted bonds, if
| 19 | | applicable. | 20 | | Notwithstanding any other provision of this Article, the
| 21 | | total required State contribution for State fiscal year 2014 | 22 | | shall include, in addition to the amount otherwise calculated | 23 | | under this Section for FY2014, the amount certified by the | 24 | | Board to be necessary to bring the total contributions of the | 25 | | State to the System for Fiscal Years 1996 through 2012 up to | 26 | | the level that would have been contributed if the State had |
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| 1 | | complied throughout that period with the contribution formula | 2 | | as originally enacted in Public Act 88-593, plus an amount | 3 | | representing the System's lost investment earnings resulting | 4 | | from the delayed payment of those contributions. | 5 | | Beginning in State fiscal year 2046, the minimum State | 6 | | contribution for
each fiscal year shall be the amount needed to | 7 | | maintain the total assets of
the System at 90% of the total | 8 | | actuarial liabilities of the System.
| 9 | | Amounts received by the System pursuant to Section 25 of | 10 | | the Budget Stabilization Act or Section 8.12 of the State | 11 | | Finance Act in any fiscal year do not reduce and do not | 12 | | constitute payment of any portion of the minimum State | 13 | | contribution required under this Article in that fiscal year. | 14 | | Such amounts shall not reduce, and shall not be included in the | 15 | | calculation of, the required State contributions under this | 16 | | Article in any future year until the System has reached a | 17 | | funding ratio of at least 90%. A reference in this Article to | 18 | | the "required State contribution" or any substantially similar | 19 | | term does not include or apply to any amounts payable to the | 20 | | System under Section 25 of the Budget Stabilization Act.
| 21 | | Notwithstanding any other provision of this Section, the | 22 | | required State
contribution for State fiscal year 2005 and for | 23 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 24 | | under this Section and
certified under Section 18-140, shall | 25 | | not exceed an amount equal to (i) the
amount of the required | 26 | | State contribution that would have been calculated under
this |
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| 1 | | Section for that fiscal year if the System had not received any | 2 | | payments
under subsection (d) of Section 7.2 of the General | 3 | | Obligation Bond Act, minus
(ii) the portion of the State's | 4 | | total debt service payments for that fiscal
year on the bonds | 5 | | issued in fiscal year 2003 for the purposes of that Section | 6 | | 7.2, as determined
and certified by the Comptroller, that is | 7 | | the same as the System's portion of
the total moneys | 8 | | distributed under subsection (d) of Section 7.2 of the General
| 9 | | Obligation Bond Act. In determining this maximum for State | 10 | | fiscal years 2008 through 2010, however, the amount referred to | 11 | | in item (i) shall be increased, as a percentage of the | 12 | | applicable employee payroll, in equal increments calculated | 13 | | from the sum of the required State contribution for State | 14 | | fiscal year 2007 plus the applicable portion of the State's | 15 | | total debt service payments for fiscal year 2007 on the bonds | 16 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 17 | | the General
Obligation Bond Act, so that, by State fiscal year | 18 | | 2011, the
State is contributing at the rate otherwise required | 19 | | under this Section.
| 20 | | (d) For purposes of determining the required State | 21 | | contribution to the System, the value of the System's assets | 22 | | shall be equal to the actuarial value of the System's assets, | 23 | | which shall be calculated as follows: | 24 | | As of June 30, 2008, the actuarial value of the System's | 25 | | assets shall be equal to the market value of the assets as of | 26 | | that date. In determining the actuarial value of the System's |
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| 1 | | assets for fiscal years after June 30, 2008, any actuarial | 2 | | gains or losses from investment return incurred in a fiscal | 3 | | year shall be recognized in equal annual amounts over the | 4 | | 5-year period following that fiscal year. | 5 | | (e) For purposes of determining the required State | 6 | | contribution to the system for a particular year, the actuarial | 7 | | value of assets shall be assumed to earn a rate of return equal | 8 | | to the system's actuarially assumed rate of return. | 9 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; | 10 | | 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff. | 11 | | 3-18-11; revised 4-6-11.)
| 12 | | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 13 | | Sec. 18-140. To certify required State contributions and | 14 | | submit vouchers.
| 15 | | (a) The Board shall certify to the Governor, on or before | 16 | | November 15 of
each year, the amount of the required State | 17 | | contribution to the System for the
following fiscal year. The | 18 | | certification shall include a copy of the actuarial
| 19 | | recommendations upon which it is based.
| 20 | | On or before May 1, 2004, the Board shall recalculate and | 21 | | recertify to
the Governor the amount of the required State | 22 | | contribution to the System for
State fiscal year 2005, taking | 23 | | into account the amounts appropriated to and
received by the | 24 | | System under subsection (d) of Section 7.2 of the General
| 25 | | Obligation Bond Act.
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| 1 | | On or before July 1, 2005, 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 2006, taking | 4 | | into account the changes in required State contributions made | 5 | | by this amendatory Act of the 94th General Assembly.
| 6 | | On or before April 1, 2011, 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 2011, applying | 9 | | the changes made by Public Act 96-889 to the System's assets | 10 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 11 | | was approved on that date. | 12 | | The Board's certification of the required State | 13 | | contribution for Fiscal Year 2014 shall include, in addition to | 14 | | the amount otherwise calculated under this Section for FY2014, | 15 | | an amount determined by the Board to be necessary to bring the | 16 | | total contributions of the State to the system for Fiscal Years | 17 | | 1996 through 2012 up to the level that would have been | 18 | | contributed if the State had complied with the contribution | 19 | | formula as originally enacted in Public Act 88-593, plus an | 20 | | amount representing the system's lost investment earnings | 21 | | resulting from the delayed payment of those contributions. | 22 | | (b) Beginning in State fiscal year 1996, on or as soon as | 23 | | possible after
the 15th day of each month the Board shall | 24 | | submit vouchers for payment of State
contributions to the | 25 | | System, in a total monthly amount of one-twelfth of the
| 26 | | required annual State contribution certified under subsection |
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| 1 | | (a).
From the effective date of this amendatory Act
of the 93rd | 2 | | General Assembly through June 30, 2004, the Board shall not
| 3 | | submit vouchers for the remainder of fiscal year 2004 in excess | 4 | | of the
fiscal year 2004 certified contribution amount | 5 | | determined
under this Section after taking into consideration | 6 | | the transfer to the
System under subsection (c) of Section | 7 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 8 | | the State Comptroller and Treasurer by warrants drawn
on the | 9 | | funds appropriated to the System for that fiscal year.
| 10 | | If in any month the amount remaining unexpended from all | 11 | | other
appropriations to the System for the applicable fiscal | 12 | | year (including the
appropriations to the System under Section | 13 | | 8.12 of the State Finance Act and
Section 1 of the State | 14 | | Pension Funds Continuing Appropriation Act) is less than
the | 15 | | amount lawfully vouchered under this Section, the difference | 16 | | shall be paid
from the General Revenue Fund under the | 17 | | continuing appropriation authority
provided in Section 1.1 of | 18 | | the State Pension Funds Continuing Appropriation
Act.
| 19 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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