[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ House Amendment 002 ] |
92_SB1174enr SB1174 Enrolled LRB9207962TAtm 1 AN ACT concerning government employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Employees Group Insurance Act of 5 1971 is amended by changing Sections 6.5 and 6.6 as follows: 6 (5 ILCS 375/6.5) 7 (Section scheduled to be repealed on July 1, 2004) 8 Sec. 6.5. Health benefits for TRS benefit recipients and 9 TRS dependent beneficiaries. 10 (a) Purpose. It is the purpose of this amendatory Act 11 of 1995 to transfer the administration of the program of 12 health benefits established for benefit recipients and their 13 dependent beneficiaries under Article 16 of the Illinois 14 Pension Code to the Department of Central Management 15 Services. 16 (b) Transition provisions. The Board of Trustees of the 17 Teachers' Retirement System shall continue to administer the 18 health benefit program established under Article 16 of the 19 Illinois Pension Code through December 31, 1995. Beginning 20 January 1, 1996, the Department of Central Management 21 Services shall be responsible for administering a program of 22 health benefits for TRS benefit recipients and TRS dependent 23 beneficiaries under this Section. The Department of Central 24 Management Services and the Teachers' Retirement System shall 25 cooperate in this endeavor and shall coordinate their 26 activities so as to ensure a smooth transition and 27 uninterrupted health benefit coverage. 28 (c) Eligibility. All persons who were enrolled in the 29 Article 16 program at the time of the transfer shall be 30 eligible to participate in the program established under this 31 Section without any interruption or delay in coverage or SB1174 Enrolled -2- LRB9207962TAtm 1 limitation as to pre-existing medical conditions. 2 Eligibility to participate shall be determined by the 3 Teachers' Retirement System. Eligibility information shall 4 be communicated to the Department of Central Management 5 Services in a format acceptable to the Department. 6 (d) Coverage. The level of health benefits provided 7 under this Section shall be similar to the level of benefits 8 provided by the program previously established under Article 9 16 of the Illinois Pension Code. 10 Group life insurance benefits are not included in the 11 benefits to be provided to TRS benefit recipients and TRS 12 dependent beneficiaries under this Act. 13 The program of health benefits under this Section may 14 include any or all of the benefit limitations, including but 15 not limited to a reduction in benefits based on eligibility 16 for federal medicare benefits, that are provided under 17 subsection (a) of Section 6 of this Act for other health 18 benefit programs under this Act. 19 (e) Insurance rates and premiums. The Director shall 20 determine the insurance rates and premiums for TRS benefit 21 recipients and TRS dependent beneficiaries, and shall present 22 to the Teachers' Retirement System of the State of Illinois, 23 by April 15 of each calendar year, the rate-setting 24 methodology (including but not limited to utilization levels 25 and costs) used to determine the amount of the health care 26 premiums. 27 For Fiscal Year 1996, the premium shall be equal to the 28 premium actually charged in Fiscal Year 1995;.in subsequent 29 years, the premium shall never be lower than the premium 30 charged in Fiscal Year 1995. For Fiscal Year 2003, the 31 premium shall not exceed 110% of the premium actually charged 32 in Fiscal Year 2002. For Fiscal Year 2004, the premium shall 33 not exceed 112% of the premium actually charged in Fiscal 34 Year 2003. SB1174 Enrolled -3- LRB9207962TAtm 1 Rates and premiums may be based in part on age and 2 eligibility for federal medicare coverage. 3 The cost of health benefits under the program shall be 4 paid as follows: 5 (1) For a TRS benefit recipient selecting a managed 6 care program, up to 75% of the total insurance rate shall 7 be paid from the Teacher Health Insurance Security Fund. 8 (2) For a TRS benefit recipient selecting the major 9 medical coverage program, up to 50% of the total 10 insurance rate shall be paid from the Teacher Health 11 Insurance Security Fund if a managed care program is 12 accessible, as determined by the Teachers' Retirement 13 System. 14 (3) For a TRS benefit recipient selecting the major 15 medical coverage program, up to 75% of the total 16 insurance rate shall be paid from the Teacher Health 17 Insurance Security Fund if a managed care program is not 18 accessible, as determined by the Teachers' Retirement 19 System. 20 (4) The balance of the rate of insurance, including 21 the entire premium of any coverage for TRS dependent 22 beneficiaries that has been elected, shall be paid by 23 deductions authorized by the TRS benefit recipient to be 24 withheld from his or her monthly annuity or benefit 25 payment from the Teachers' Retirement System; except that 26 (i) if the balance of the cost of coverage exceeds the 27 amount of the monthly annuity or benefit payment, the 28 difference shall be paid directly to the Teachers' 29 Retirement System by the TRS benefit recipient, and (ii) 30 all or part of the balance of the cost of coverage may, 31 at the school board's option, be paid to the Teachers' 32 Retirement System by the school board of the school 33 district from which the TRS benefit recipient retired, in 34 accordance with Section 10-22.3b of the School Code. The SB1174 Enrolled -4- LRB9207962TAtm 1 Teachers' Retirement System shall promptly deposit all 2 moneys withheld by or paid to it under this subdivision 3 (e)(4) into the Teacher Health Insurance Security Fund. 4 These moneys shall not be considered assets of the 5 Retirement System. 6 (f) Financing. Beginning July 1, 1995, all revenues 7 arising from the administration of the health benefit 8 programs established under Article 16 of the Illinois Pension 9 Code or this Section shall be deposited into the Teacher 10 Health Insurance Security Fund, which is hereby created as a 11 nonappropriated trust fund to be held outside the State 12 Treasury, with the State Treasurer as custodian. Any 13 interest earned on moneys in the Teacher Health Insurance 14 Security Fund shall be deposited into the Fund. 15 Moneys in the Teacher Health Insurance Security Fund 16 shall be used only to pay the costs of the health benefit 17 program established under this Section, including associated 18 administrative costs, and the costs associated with the 19 health benefit program established under Article 16 of the 20 Illinois Pension Code, as authorized in this Section. 21 Beginning July 1, 1995, the Department of Central Management 22 Services may make expenditures from the Teacher Health 23 Insurance Security Fund for those costs. 24 After other funds authorized for the payment of the costs 25 of the health benefit program established under Article 16 of 26 the Illinois Pension Code are exhausted and until January 1, 27 1996 (or such later date as may be agreed upon by the 28 Director of Central Management Services and the Secretary of 29 the Teachers' Retirement System), the Secretary of the 30 Teachers' Retirement System may make expenditures from the 31 Teacher Health Insurance Security Fund as necessary to pay up 32 to 75% of the cost of providing health coverage to eligible 33 benefit recipients (as defined in Sections 16-153.1 and 34 16-153.3 of the Illinois Pension Code) who are enrolled in SB1174 Enrolled -5- LRB9207962TAtm 1 the Article 16 health benefit program and to facilitate the 2 transfer of administration of the health benefit program to 3 the Department of Central Management Services. 4 (g) Contract for benefits. The Director shall by 5 contract, self-insurance, or otherwise make available the 6 program of health benefits for TRS benefit recipients and 7 their TRS dependent beneficiaries that is provided for in 8 this Section. The contract or other arrangement for the 9 provision of these health benefits shall be on terms deemed 10 by the Director to be in the best interest of the State of 11 Illinois and the TRS benefit recipients based on, but not 12 limited to, such criteria as administrative cost, service 13 capabilities of the carrier or other contractor, and the 14 costs of the benefits. 15 (h) Continuation and termination of program. It is the 16 intention of the General Assembly that the program of health 17 benefits provided under this Section be maintained on an 18 ongoing, affordable basis through June 30, 2004. The program 19 of health benefits provided under this Section is terminated 20 on July 1, 2004. 21 The program of health benefits provided under this 22 Section may be amended by the State and is not intended to be 23 a pension or retirement benefit subject to protection under 24 Article XIII, Section 5 of the Illinois Constitution. 25 (i) Repeal. This Section is repealed on July 1, 2004. 26 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.) 27 (5 ILCS 375/6.6) 28 (Section scheduled to be repealed on July 1, 2004) 29 Sec. 6.6. Contributions to the Teacher Health Insurance 30 Security Fund. 31 (a) Beginning July 1, 1995, all active contributors of 32 the Teachers' Retirement System (established under Article 16 33 of the Illinois Pension Code) who are not employees of a SB1174 Enrolled -6- LRB9207962TAtm 1 department as defined in Section 3 of this Act shall make 2 contributions toward the cost of annuitant and survivor 3 health benefits. These contributions shall be at the 4 following rates: until January 1, 2002,rate of0.5% of 5 salary; beginning January 1, 2002, 0.65% of salary; beginning 6 July 1, 2003, 0.75% of salary. 7 These contributions shall be deducted by the employer and 8 paid to the System as service agent for the Department of 9 Central Management Services. The System may use the same 10 processes for collecting the contributions required by this 11 subsection that it uses to collect contributions received 12 from school districts and other covered employers under 13 Sections 16-154 and 16-155 of the Illinois Pension Code. 14 An employer may agree to pick up or pay the contributions 15 required under this subsection on behalf of the teacher; such 16 contributions shall be deemed to have to have been paid by 17 the teacher. Beginning January 1, 2002, if the employer does 18 not directly pay the required member contribution, then the 19 employer shall reduce the member's salary by an amount equal 20 to the required contribution and shall then pay the 21 contribution on behalf of the member. This reduction shall 22 not change the amounts reported as creditable earnings to the 23 Teachers' Retirement System. 24 A person who purchases optional service credit under 25 Article 16 of the Illinois Pension Code for a period after 26 June 30, 1995 must also make a contribution under this 27 subsection for that optional credit, at the rate provided in 28 subsection (a), based onof 0.5% ofthe salary used in 29 computing the optional service credit, plus interest on this 30 employee contribution. This contribution shall be collected 31 by the System as service agent for the Department of Central 32 Management Services. The contribution required under this 33 subsection for the optional service credit must be paid in 34 full before any annuity based on that credit begins. SB1174 Enrolled -7- LRB9207962TAtm 1 (a-5) Beginning January 1, 2002, every employer of a 2 teacher (other than an employer that is a department as 3 defined in Section 3 of this Act) shall pay an employer 4 contribution toward the cost of annuitant and survivor health 5 benefits. These contributions shall be computed as follows: 6 (1) Beginning January 1, 2002 through June 30, 7 2003, the employer contribution shall be equal to 0.4% of 8 each teacher's salary. 9 (2) Beginning July 1, 2003, the employer 10 contribution shall be equal to 0.5% of each teacher's 11 salary. 12 These contributions shall be paid by the employer to the 13 System as service agent for the Department of Central 14 Management Services. The System may use the same processes 15 for collecting the contributions required by this subsection 16 that it uses to collect contributions received from school 17 districts and other covered employers under the Illinois 18 Pension Code. 19 The school district or other employing unit may pay these 20 employer contributions out of any source of funding available 21 for that purpose and shall forward the contributions to the 22 System on the schedule established for the payment of member 23 contributions. 24 (b) The Teachers' Retirement System shall promptly 25 deposit all moneys collected under subsectionssubsection(a) 26 and (a-5) of this Section into the Teacher Health Insurance 27 Security Fund created in Section 6.5 of this Act. The moneys 28 collected under this Section shall be used only for the 29 purposes authorized in Section 6.5 of this Act and shall not 30 be considered to be assets of the Teachers' Retirement 31 System. Contributions made under this Section are not 32 transferable to other pension funds or retirement systems and 33 are not refundable upon termination of service. 34 (c) On or before November 15 of each year, the Board of SB1174 Enrolled -8- LRB9207962TAtm 1 Trustees of the Teachers' Retirement System shall certify to 2 the Governor, the Director of Central Management Services, 3 and the State Comptroller its estimate of the total amount of 4 contributions to be paid under subsection (a) of this Section 5 6.6 for the next fiscal year. The amount certified shall be 6 decreased or increased each year by the amount that the 7 actual active teacher contributions either fell short of or 8 exceeded the estimate used by the Board in making the 9 certification for the previous fiscal year. The 10 certification shall include a detailed explanation of the 11 methods and information that the Board relied upon in 12 preparing its estimate. As soon as possible after the 13 effective date of this amendatory Act of the 92nd General 14 AssemblySection, the Board shall recalculate and recertify 15 its certifications for fiscal years 2002 and 2003submit its16estimate for fiscal year 1996. 17 (d) Beginning in fiscal year 1996, on the first day of 18 each month, or as soon thereafter as may be practical, the 19 State Treasurer and the State Comptroller shall transfer from 20 the General Revenue Fund to the Teacher Health Insurance 21 Security Fund 1/12 of the annual amount appropriated for that 22 fiscal year to the State Comptroller for deposit into the 23 Teacher Health Insurance Security Fund under Section 1.3 of 24 the State Pension Funds Continuing Appropriation Act. 25 (e) Except where otherwise specified in this Section, 26 the definitions that apply to Article 16 of the Illinois 27 Pension Code apply to this Section. 28 (f) This Section is repealed on July 1, 2004. 29 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95; 30 90-448, eff. 8-16-97.) 31 Section 10. The Department of Central Management 32 Services Law of the Civil Administrative Code of Illinois is 33 amended by adding Section 405-22 as follows: SB1174 Enrolled -9- LRB9207962TAtm 1 (20 ILCS 405/405-22 new) 2 (Section scheduled to be repealed on July 1, 2002) 3 Sec. 405-22. Teacher Health Insurance Funding Task 4 Force. 5 (a) A Teacher Health Insurance Funding Task Force is 6 hereby created within the Department of Central Management 7 Services. The Task Force shall consist of 23 members 8 appointed as follows: 9 (1) Three members appointed by the President of the 10 Senate. 11 (2) Three members appointed by the Minority Leader 12 of the Senate. 13 (3) Three members appointed by the Speaker of the 14 House of Representatives. 15 (4) Three members appointed by the Minority Leader 16 of the House of Representatives. 17 (5) One member appointed by the Illinois Retired 18 Teachers Association. 19 (6) One member appointed by the Illinois Education 20 Association. 21 (7) One member appointed by the Illinois Federation 22 of Teachers. 23 (8) One member appointed by the Illinois 24 Association of School Boards. 25 (9) One member appointed by the Illinois 26 Association of School Administrators. 27 (10) One member appointed by the Illinois 28 Association of School Business Officials. 29 (11) Three members appointed by the Governor, 30 including one who has experience in the insurance 31 industry. 32 (12) The Director of Central Management Services, 33 ex officio, or a person designated by the Director. 34 (13) The Executive Director of the Teachers' SB1174 Enrolled -10- LRB9207962TAtm 1 Retirement System of Illinois, ex officio, or a person 2 designated by the Executive Director. 3 Entities making appointments shall do so by filing their 4 respective designations, in writing, with the Director of 5 Central Management Services. 6 One of the members appointed by the Governor shall serve 7 as the Chair of the Task Force. 8 (b) The Task Force shall convene on December 1, 2001 and 9 thereafter meet at the call of the chair. Members of the 10 Task Force shall not be compensated for their service. 11 (c) The Task Force shall study the funding of the 12 Teacher Health Insurance Security Fund and the health benefit 13 programs that receive funding from that Fund. 14 The Task Force shall report its findings and 15 recommendations to the Governor and the General Assembly on 16 or before April 1, 2002. 17 (d) The Task Force is abolished and this Section is 18 repealed on July 1, 2002. 19 Section 15. The State Finance Act is amended by changing 20 Section 8g as follows: 21 (30 ILCS 105/8g) 22 Sec. 8g. Transfers from General Revenue Fund. 23 (a) In addition to any other transfers that may be 24 provided for by law, as soon as may be practical after the 25 effective date of this amendatory Act of the 91st General 26 Assembly, the State Comptroller shall direct and the State 27 Treasurer shall transfer the sum of $10,000,000 from the 28 General Revenue Fund to the Motor Vehicle License Plate Fund 29 created by Senate Bill 1028 of the 91st General Assembly. 30 (b) In addition to any other transfers that may be 31 provided for by law, as soon as may be practical after the 32 effective date of this amendatory Act of the 91st General SB1174 Enrolled -11- LRB9207962TAtm 1 Assembly, the State Comptroller shall direct and the State 2 Treasurer shall transfer the sum of $25,000,000 from the 3 General Revenue Fund to the Fund for Illinois' Future created 4 by Senate Bill 1066 of the 91st General Assembly. 5 (c) In addition to any other transfers that may be 6 provided for by law, on August 30 of each fiscal year's 7 license period, the Illinois Liquor Control Commission shall 8 direct and the State Comptroller and State Treasurer shall 9 transfer from the General Revenue Fund to the Youth 10 Alcoholism and Substance Abuse Prevention Fund an amount 11 equal to the number of retail liquor licenses issued for that 12 fiscal year multiplied by $50. 13 (d) The payments to programs required under subsection 14 (d) of Section 28.1 of the Horse Racing Act of 1975 shall be 15 made, pursuant to appropriation, from the special funds 16 referred to in the statutes cited in that subsection, rather 17 than directly from the General Revenue Fund. 18 Beginning January 1, 2000, on the first day of each 19 month, or as soon as may be practical thereafter, the State 20 Comptroller shall direct and the State Treasurer shall 21 transfer from the General Revenue Fund to each of the special 22 funds from which payments are to be made under Section 23 28.1(d) of the Horse Racing Act of 1975 an amount equal to 24 1/12 of the annual amount required for those payments from 25 that special fund, which annual amount shall not exceed the 26 annual amount for those payments from that special fund for 27 the calendar year 1998. The special funds to which transfers 28 shall be made under this subsection (d) include, but are not 29 necessarily limited to, the Agricultural Premium Fund; the 30 Metropolitan Exposition Auditorium and Office Building Fund; 31 the Fair and Exposition Fund; the Standardbred Breeders Fund; 32 the Thoroughbred Breeders Fund; and the Illinois Veterans' 33 Rehabilitation Fund. 34 (e) In addition to any other transfers that may be SB1174 Enrolled -12- LRB9207962TAtm 1 provided for by law, as soon as may be practical after the 2 effective date of this amendatory Act of the 91st General 3 Assembly, but in no event later than June 30, 2000, the State 4 Comptroller shall direct and the State Treasurer shall 5 transfer the sum of $15,000,000 from the General Revenue Fund 6 to the Fund for Illinois' Future. 7 (f) In addition to any other transfers that may be 8 provided for by law, as soon as may be practical after the 9 effective date of this amendatory Act of the 91st General 10 Assembly, but in no event later than June 30, 2000, the State 11 Comptroller shall direct and the State Treasurer shall 12 transfer the sum of $70,000,000 from the General Revenue Fund 13 to the Long-Term Care Provider Fund. 14 (f-1) In fiscal year 2002, in addition to any other 15 transfers that may be provided for by law, at the direction 16 of and upon notification from the Governor, the State 17 Comptroller shall direct and the State Treasurer shall 18 transfer amounts not exceeding a total of $160,000,000 from 19 the General Revenue Fund to the Long-Term Care Provider Fund. 20 (g) In addition to any other transfers that may be 21 provided for by law, on July 1, 2001, or as soon thereafter 22 as may be practical, the State Comptroller shall direct and 23 the State Treasurer shall transfer the sum of $1,200,000 from 24 the General Revenue Fund to the Violence Prevention Fund. 25 (h) In each of fiscal years 2002 through 2007, but not 26 thereafter, in addition to any other transfers that may be 27 provided for by law, the State Comptroller shall direct and 28 the State Treasurer shall transfer $5,000,000 from the 29 General Revenue Fund to the Tourism Promotion Fund. 30 (i) On or after July 1, 2001 and until May 1, 2002, in 31 addition to any other transfers that may be provided for by 32 law, at the direction of and upon notification from the 33 Governor, the State Comptroller shall direct and the State 34 Treasurer shall transfer amounts not exceeding a total of SB1174 Enrolled -13- LRB9207962TAtm 1 $80,000,000 from the General Revenue Fund to the Tobacco 2 Settlement Recovery Fund. Any amounts so transferred shall 3 be re-transferred by the State Comptroller and the State 4 Treasurer from the Tobacco Settlement Recovery Fund to the 5 General Revenue Fund at the direction of and upon 6 notification from the Governor, but in any event on or before 7 June 30, 2002. 8 (j) On or after July 1, 2001 and no later than June 30, 9 2002, in addition to any other transfers that may be provided 10 for by law, at the direction of and upon notification from 11 the Governor, the State Comptroller shall direct and the 12 State Treasurer shall transfer amounts not to exceed the 13 following sums into the Statistical Services Revolving Fund: 14 From the General Revenue Fund............... $8,450,000 15 From the Public Utility Fund................ 1,700,000 16 From the Transportation Regulatory Fund..... 2,650,000 17 From the Title III Social Security and 18 Employment Fund........................... 3,700,000 19 From the Professions Indirect Cost Fund..... 4,050,000 20 From the Underground Storage Tank Fund...... 550,000 21 From the Agricultural Premium Fund.......... 750,000 22 From the State Pensions Fund................ 200,000 23 From the Road Fund.......................... 2,000,000 24 From the Health Facilities 25 Planning Fund............................. 1,000,000 26 From the Savings and Residential Finance 27 Regulatory Fund........................... 130,800 28 From the Appraisal Administration Fund...... 28,600 29 From the Pawnbroker Regulation Fund......... 3,600 30 From the Auction Regulation 31 Administration Fund....................... 35,800 32 From the Bank and Trust Company Fund........ 634,800 33 From the Real Estate License 34 Administration Fund....................... 313,600 SB1174 Enrolled -14- LRB9207962TAtm 1 (k) In addition to any other transfers that may be 2 provided for by law, as soon as may be practical after the 3 effective date of this amendatory Act of the 92nd General 4 Assembly, the State Comptroller shall direct and the State 5 Treasurer shall transfer the sum of $2,000,000 from the 6 General Revenue Fund to the Teachers Health Insurance 7 Security Fund. 8 (k-1) In addition to any other transfers that may be 9 provided for by law, on July 1, 2002, or as soon as may be 10 practical thereafter, the State Comptroller shall direct and 11 the State Treasurer shall transfer the sum of $2,000,000 from 12 the General Revenue Fund to the Teachers Health Insurance 13 Security Fund. 14 (k-2) In addition to any other transfers that may be 15 provided for by law, on July 1, 2003, or as soon as may be 16 practical thereafter, the State Comptroller shall direct and 17 the State Treasurer shall transfer the sum of $2,000,000 from 18 the General Revenue Fund to the Teachers Health Insurance 19 Security Fund. 20 (Source: P.A. 91-25, eff. 6-9-99; 91-704, eff. 5-17-00; 21 92-11, eff. 6-11-01.) 22 Section 20. The Illinois Pension Code is amended by 23 changing Section 16-158 as follows: 24 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158) 25 Sec. 16-158. Contributions by State and other employing 26 units. 27 (a) The State shall make contributions to the System by 28 means of appropriations from the Common School Fund and other 29 State funds of amounts which, together with other employer 30 contributions, employee contributions, investment income, and 31 other income, will be sufficient to meet the cost of 32 maintaining and administering the System on a 90% funded SB1174 Enrolled -15- LRB9207962TAtm 1 basis in accordance with actuarial recommendations. 2 The Board shall determine the amount of State 3 contributions required for each fiscal year on the basis of 4 the actuarial tables and other assumptions adopted by the 5 Board and the recommendations of the actuary, using the 6 formula in subsection (b-3). 7 (a-1) Annually, on or before November 15, the board 8 shall certify to the Governor the amount of the required 9 State contribution for the coming fiscal year. The 10 certification shall include a copy of the actuarial 11 recommendations upon which it is based. 12 (b) Through State fiscal year 1995, the State 13 contributions shall be paid to the System in accordance with 14 Section 18-7 of the School Code. 15 (b-1) Beginning in State fiscal year 1996, on the 15th 16 day of each month, or as soon thereafter as may be 17 practicable, the Board shall submit vouchers for payment of 18 State contributions to the System, in a total monthly amount 19 of one-twelfth of the required annual State contribution 20 certified under subsection (a-1). These vouchers shall be 21 paid by the State Comptroller and Treasurer by warrants drawn 22 on the funds appropriated to the System for that fiscal year. 23 If in any month the amount remaining unexpended from all 24 other appropriations to the System for the applicable fiscal 25 year (including the appropriations to the System under 26 Section 8.12 of the State Finance Act and Section 1 of the 27 State Pension Funds Continuing Appropriation Act) is less 28 than the amount lawfully vouchered under this subsection, the 29 difference shall be paid from the Common School Fund under 30 the continuing appropriation authority provided in Section 31 1.1 of the State Pension Funds Continuing Appropriation Act. 32 (b-2) Allocations from the Common School Fund 33 apportioned to school districts not coming under this System 34 shall not be diminished or affected by the provisions of this SB1174 Enrolled -16- LRB9207962TAtm 1 Article. 2 (b-3) For State fiscal years 2011 through 2045, the 3 minimum contribution to the System to be made by the State 4 for each fiscal year shall be an amount determined by the 5 System to be sufficient to bring the total assets of the 6 System up to 90% of the total actuarial liabilities of the 7 System by the end of State fiscal year 2045. In making these 8 determinations, the required State contribution shall be 9 calculated each year as a level percentage of payroll over 10 the years remaining to and including fiscal year 2045 and 11 shall be determined under the projected unit credit actuarial 12 cost method. 13 For State fiscal years 1996 through 2010, the State 14 contribution to the System, as a percentage of the applicable 15 employee payroll, shall be increased in equal annual 16 increments so that by State fiscal year 2011, the State is 17 contributing at the rate required under this Section; except 18 that in the following specified State fiscal years, the State 19 contribution to the System shall not be less than the 20 following indicated percentages of the applicable employee 21 payroll, even if the indicated percentage will produce a 22 State contribution in excess of the amount otherwise required 23 under this subsection and subsection (a), and notwithstanding 24 any contrary certification made under subsection (a-1) before 25 the effective date of this amendatory Act of 1998: 10.02% in 26 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 27 2002; 12.86% in FY 2003; 13.56% in FY 2004; 14.25% in FY 28 2005; 14.95% in FY 2006; 15.65% in FY 2007; 16.34% in FY 29 2008; 17.04% in FY 2009; and 17.74% in FY 2010. 30 Beginning in State fiscal year 2046, the minimum State 31 contribution for each fiscal year shall be the amount needed 32 to maintain the total assets of the System at 90% of the 33 total actuarial liabilities of the System. 34 (c) Payment of the required State contributions and of SB1174 Enrolled -17- LRB9207962TAtm 1 all pensions, retirement annuities, death benefits, refunds, 2 and other benefits granted under or assumed by this System, 3 and all expenses in connection with the administration and 4 operation thereof, are obligations of the State. 5 If members are paid from special trust or federal funds 6 which are administered by the employing unit, whether school 7 district or other unit, the employing unit shall pay to the 8 System from such funds the full accruing retirement costs 9 based upon that service, as determined by the System. 10 Employer contributions, based on salary paid to members from 11 federal funds, may be forwarded by the distributing agency of 12 the State of Illinois to the System prior to allocation, in 13 an amount determined in accordance with guidelines 14 established by such agency and the System. 15 (d) Effective July 1, 1986, any employer of a teacher as 16 defined in paragraph (8) of Section 16-106 shall pay the 17 employer's normal cost of benefits based upon the teacher's 18 service, in addition to employee contributions, as determined 19 by the System. Such employer contributions shall be 20 forwarded monthly in accordance with guidelines established 21 by the System. 22 However, with respect to benefits granted under Section 23 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8) 24 of Section 16-106, the employer's contribution shall be 12% 25 (rather than 20%) of the member's highest annual salary rate 26 for each year of creditable service granted, and the employer 27 shall also pay the required employee contribution on behalf 28 of the teacher. For the purposes of Sections 16-133.4 and 29 16-133.5, a teacher as defined in paragraph (8) of Section 30 16-106 who is serving in that capacity while on leave of 31 absence from another employer under this Article shall not be 32 considered an employee of the employer from which the teacher 33 is on leave. 34 (e) Beginning July 1, 1998, every employer of a teacher SB1174 Enrolled -18- LRB9207962TAtm 1 shall pay to the System an employer contribution computed as 2 follows: 3 (1) Beginning July 1, 1998 through June 30, 1999, 4 the employer contribution shall be equal to 0.3% of each 5 teacher's salary. 6 (2) Beginning July 1, 1999 and thereafter, the 7 employer contribution shall be equal to 0.58% of each 8 teacher's salary. 9 The school district or other employing unit may pay these 10 employer contributions out of any source of funding available 11 for that purpose and shall forward the contributions to the 12 System on the schedule established for the payment of member 13 contributions. 14 These employer contributions are intended to offset a 15 portion of the cost to the System of the increases in 16 retirement benefits resulting from this amendatory Act of 17 1998. 18 Each employer of teachers is entitled to a credit against 19 the contributions required under this subsection (e) with 20 respect to salaries paid to teachers for the period January 21 1, 2002 through June 30, 2003, equal to the amount paid by 22 that employer under subsection (a-5) of Section 6.6 of the 23 State Employees Group Insurance Act of 1971 with respect to 24 salaries paid to teachers for that period. 25 The additional 1% employee contribution required under 26 Section 16-152 by this amendatory Act of 1998 is the 27 responsibility of the teacher and not the teacher's employer, 28 unless the employer agrees, through collective bargaining or 29 otherwise, to make the contribution on behalf of the teacher. 30 If an employer is required by a contract in effect on May 31 1, 1998 between the employer and an employee organization to 32 pay, on behalf of all its full-time employees covered by this 33 Article, all mandatory employee contributions required under 34 this Article, then the employer shall be excused from paying SB1174 Enrolled -19- LRB9207962TAtm 1 the employer contribution required under this subsection (e) 2 for the balance of the term of that contract. The employer 3 and the employee organization shall jointly certify to the 4 System the existence of the contractual requirement, in such 5 form as the System may prescribe. This exclusion shall cease 6 upon the termination, extension, or renewal of the contract 7 at any time after May 1, 1998. 8 (Source: P.A. 90-582, eff. 5-27-98.) 9 Section 90. The State Mandates Act is amended by adding 10 Section 8.26 as follows: 11 (30 ILCS 805/8.26 new) 12 Sec. 8.26. Exempt mandate. Notwithstanding Sections 6 13 and 8 of this Act, no reimbursement by the State is required 14 for the implementation of any mandate created by this 15 amendatory Act of the 92nd General Assembly. 16 Section 99. Effective date. This Act takes effect upon 17 becoming law.