State of Illinois
92nd General Assembly
Legislation

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92_SB0783

 
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 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 17-127 and 17-130.1 as follows:

 6        (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
 7        Sec. 17-127. Financing; revenues for the Fund.
 8        (a)  The revenues for the  Fund  shall  consist  of:  (1)
 9    amounts  paid  into the Fund by contributors thereto and from
10    employer contributions and State appropriations in accordance
11    with this Article; (2) amounts contributed to the Fund by  an
12    Employer; (3) amounts contributed to the Fund pursuant to any
13    law   now   in   force   or  hereafter  to  be  enacted;  (4)
14    contributions from any other source; and (5) the earnings  on
15    investments of the Fund.
16        (b)  The  General  Assembly finds that for many years the
17    State has contributed to the Fund an annual  amount  that  is
18    between  20%  and  30%  of  the  amount  of  the annual State
19    contribution to the Article 16  retirement  system,  and  the
20    General  Assembly  declares that it is its goal and intention
21    to continue this level of contribution to  the  Fund  in  the
22    future.
23        (b-5)  Beginning  In  State  fiscal  year 1999, the State
24    shall include in its  annual  contribution  to  the  Fund  an
25    additional amount equal to 0.544% of the Fund's total teacher
26    payroll; except that this additional contribution need not be
27    made  in  a  fiscal  year  if  the Board has certified in the
28    previous fiscal year that the Fund is at  least  90%  funded,
29    based  on  actuarial  determinations.  These additional State
30    contributions are intended to offset a portion of the cost to
31    the Fund of the increases in  retirement  benefits  resulting
 
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 1    from Public Act 90-582 this amendatory Act of 1998.
 2        (c)  For  each  State  fiscal year ending after 2001, the
 3    State  shall  contribute   to   the   Fund,   by   means   of
 4    appropriations  from  the  Common  School Fund or other State
 5    funds, an amount not less than the sum of (i) the  amount  so
 6    appropriated for the State's fiscal year ending in 2001, plus
 7    (ii)  20%  of  the  amount, if any, by which the total amount
 8    appropriated for contributions by the State to the  Teachers'
 9    Retirement  System  of  the  State  of Illinois under Section
10    16-158 in the year of contribution exceeds the amount of such
11    appropriations for the State fiscal year ending in 2001.
12        (d)  Beginning in the State fiscal year ending  in  2002,
13    on  the 15th day of each month, or as soon after that date as
14    is practicable, the Board shall submit vouchers  for  payment
15    of  State  contributions  to the Fund, in a monthly amount of
16    one-twelfth of the required annual State  contribution  under
17    subsection  (c)  of  this  Section.   If that required annual
18    contribution  changes  during  the  State  fiscal  year,  the
19    remaining monthly amounts shall be adjusted in equal  amounts
20    so that the total amount for which vouchers are submitted for
21    the  year  equals  that  required annual contribution.  These
22    vouchers shall be paid by the State Comptroller and Treasurer
23    by warrants drawn on the funds appropriated to the  Fund  for
24    that  fiscal  year.   If,  in any month, the amount remaining
25    unexpended from all other State appropriations  to  the  Fund
26    for  that State fiscal year is less than the amount for which
27    vouchers are  lawfully  submitted  under  this  Section,  the
28    difference  shall  be paid under the continuing appropriation
29    available for that purpose pursuant to  the  Chicago  Teacher
30    Pension Fund Continuing Appropriation Act.
31        (e)  For   the  purposes  of  this  subsection,  "minimum
32    funding requirement" for any fiscal year means the greater of
33    (1) the minimum Board of Education contribution to  the  Fund
34    under  Section  17-129  for a fiscal year (calculated without
 
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 1    regard to any contribution of the State to or for the benefit
 2    of the Fund) or (2) the amount appropriated to  the  Fund  by
 3    the State for the State's fiscal year ending in 2001.
 4        To  the  extent  that  the State contribution to the Fund
 5    under this Section in a State fiscal year ending  after  2001
 6    exceeds the minimum funding requirement for that fiscal year,
 7    that  excess  amount  shall  be treated for all purposes as a
 8    payment (and release) of an equal amount of any obligation of
 9    the Board of Education to its employees to make contributions
10    to the Fund on behalf of employees under Section 17-130.1  in
11    that fiscal year and shall be treated for all purposes in the
12    same  manner and to the same extent as employee contributions
13    made by employees and deducted from salary, to the extent the
14    Board of Education would be so required by the terms  of  its
15    employment  of  employees who are members of the Fund to make
16    such a contribution in that State fiscal year.  The amount so
17    to be applied in any State fiscal year shall  be  applied  by
18    the  Fund,  as  nearly  as  may  be  practicable, on an equal
19    monthly basis, adjusting the amount  as  necessary  upon  any
20    change  in  the  appropriations  or in the obligations of the
21    Board of Education.
22        Any amounts received by the Fund  from  the  State  in  a
23    State  fiscal  year  ending  after  2001  (together  with any
24    amounts carried forward  from  a  previous  year  under  this
25    provision)  in  excess  of the sum of (i) the minimum funding
26    requirement for that year and (ii) the amount treated in that
27    year as a payment (and release) by the Board of Education  of
28    Board  of  Education  obligations  to  make  contributions on
29    behalf of employees under Section 17-130.1,  plus  investment
30    earnings  realized  by the Fund on that excess, shall be held
31    by the Fund and carried forward  to  the  next  State  fiscal
32    year, to be used for the purposes for which appropriations to
33    the  Fund  for  that  next fiscal year may be used under this
34    Section but shall not be a credit against or an offset of the
 
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 1    minimum funding requirement for the next fiscal year.
 2    (Source: P.A. 90-548,  eff.  12-4-97;  90-566,  eff.  1-2-98;
 3    90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)

 4        (40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
 5        Sec.  17-130.1.   Employer  contributions  on  behalf  of
 6    employees.   An Employer and the Board may make and may incur
 7    an  obligation  to  make  contributions  on  behalf  of   its
 8    employees   in   an   amount   not  to  exceed  the  employee
 9    contributions required by Section 17-130 for all compensation
10    earned after September 21, 1981.   If  the  Employer  or  the
11    Board  of Education determines not to make such contributions
12    or incur an obligation to make such contributions, the amount
13    that it could have contributed on  behalf  of  its  employees
14    shall  continue to be deducted from salary.  If contributions
15    are made by an  Employer  or  the  Board  on  behalf  of  its
16    employees  they shall be treated as employer contributions in
17    determining tax treatment under the  United  States  Internal
18    Revenue  Code.  An  Employer  or  the  Board  may  make these
19    contributions on behalf of its employees by  a  reduction  in
20    the  cash  salary  of  the employee or by an offset against a
21    future salary increase or by a combination of a reduction  in
22    salary  and  offset  against  a  future  salary increase.  An
23    Employer or the Board shall pay these employee  contributions
24    from  the same source of funds which is used in paying salary
25    to the employee or from amounts treated as made under Section
26    17-127,  or  it  may  also   or   alternatively   make   such
27    contributions  from  the  proceeds  of  the tax authorized by
28    Section  34-60  of   the   School   Code.     Such   employee
29    contributions  shall  be  treated  for  all  purposes of this
30    Article 17 in the same manner  and  to  the  same  extent  as
31    employee  contributions  made  by employees and deducted from
32    salary; provided, however, that  contributions  made  by  the
33    Board of Education on behalf of its employees which are to be
 
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 1    paid  from  the  proceeds  of the tax, as provided in Section
 2    34-60 of the School Code, shall not be treated  as  teachers'
 3    pension  contributions  for the purposes of Section 17-132 of
 4    the  Illinois  Pension  Code,  and  provided  further,   that
 5    contributions  which  are  made  by the Board of Education on
 6    behalf of its employees shall not be treated as a pension  or
 7    retirement  obligation of the Board of Education for purposes
 8    of Section 12 of "An Act in relation to State revenue sharing
 9    with local governmental entities", approved July 31, 1969.
10    (Source: P.A. 90-566, eff. 1-2-98.)

11        Section 99.  Effective date.  This Act takes effect  upon
12    becoming law.

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