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Public Act 92-0505
SB1174 Enrolled LRB9207962TAtm
AN ACT concerning government employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of
1971 is amended by changing Sections 6.5 and 6.6 as follows:
(5 ILCS 375/6.5)
(Section scheduled to be repealed on July 1, 2004)
Sec. 6.5. Health benefits for TRS benefit recipients and
TRS dependent beneficiaries.
(a) Purpose. It is the purpose of this amendatory Act
of 1995 to transfer the administration of the program of
health benefits established for benefit recipients and their
dependent beneficiaries under Article 16 of the Illinois
Pension Code to the Department of Central Management
Services.
(b) Transition provisions. The Board of Trustees of the
Teachers' Retirement System shall continue to administer the
health benefit program established under Article 16 of the
Illinois Pension Code through December 31, 1995. Beginning
January 1, 1996, the Department of Central Management
Services shall be responsible for administering a program of
health benefits for TRS benefit recipients and TRS dependent
beneficiaries under this Section. The Department of Central
Management Services and the Teachers' Retirement System shall
cooperate in this endeavor and shall coordinate their
activities so as to ensure a smooth transition and
uninterrupted health benefit coverage.
(c) Eligibility. All persons who were enrolled in the
Article 16 program at the time of the transfer shall be
eligible to participate in the program established under this
Section without any interruption or delay in coverage or
limitation as to pre-existing medical conditions.
Eligibility to participate shall be determined by the
Teachers' Retirement System. Eligibility information shall
be communicated to the Department of Central Management
Services in a format acceptable to the Department.
(d) Coverage. The level of health benefits provided
under this Section shall be similar to the level of benefits
provided by the program previously established under Article
16 of the Illinois Pension Code.
Group life insurance benefits are not included in the
benefits to be provided to TRS benefit recipients and TRS
dependent beneficiaries under this Act.
The program of health benefits under this Section may
include any or all of the benefit limitations, including but
not limited to a reduction in benefits based on eligibility
for federal medicare benefits, that are provided under
subsection (a) of Section 6 of this Act for other health
benefit programs under this Act.
(e) Insurance rates and premiums. The Director shall
determine the insurance rates and premiums for TRS benefit
recipients and TRS dependent beneficiaries, and shall present
to the Teachers' Retirement System of the State of Illinois,
by April 15 of each calendar year, the rate-setting
methodology (including but not limited to utilization levels
and costs) used to determine the amount of the health care
premiums.
For Fiscal Year 1996, the premium shall be equal to the
premium actually charged in Fiscal Year 1995;. in subsequent
years, the premium shall never be lower than the premium
charged in Fiscal Year 1995. For Fiscal Year 2003, the
premium shall not exceed 110% of the premium actually charged
in Fiscal Year 2002. For Fiscal Year 2004, the premium shall
not exceed 112% of the premium actually charged in Fiscal
Year 2003.
Rates and premiums may be based in part on age and
eligibility for federal medicare coverage.
The cost of health benefits under the program shall be
paid as follows:
(1) For a TRS benefit recipient selecting a managed
care program, up to 75% of the total insurance rate shall
be paid from the Teacher Health Insurance Security Fund.
(2) For a TRS benefit recipient selecting the major
medical coverage program, up to 50% of the total
insurance rate shall be paid from the Teacher Health
Insurance Security Fund if a managed care program is
accessible, as determined by the Teachers' Retirement
System.
(3) For a TRS benefit recipient selecting the major
medical coverage program, up to 75% of the total
insurance rate shall be paid from the Teacher Health
Insurance Security Fund if a managed care program is not
accessible, as determined by the Teachers' Retirement
System.
(4) The balance of the rate of insurance, including
the entire premium of any coverage for TRS dependent
beneficiaries that has been elected, shall be paid by
deductions authorized by the TRS benefit recipient to be
withheld from his or her monthly annuity or benefit
payment from the Teachers' Retirement System; except that
(i) if the balance of the cost of coverage exceeds the
amount of the monthly annuity or benefit payment, the
difference shall be paid directly to the Teachers'
Retirement System by the TRS benefit recipient, and (ii)
all or part of the balance of the cost of coverage may,
at the school board's option, be paid to the Teachers'
Retirement System by the school board of the school
district from which the TRS benefit recipient retired, in
accordance with Section 10-22.3b of the School Code. The
Teachers' Retirement System shall promptly deposit all
moneys withheld by or paid to it under this subdivision
(e)(4) into the Teacher Health Insurance Security Fund.
These moneys shall not be considered assets of the
Retirement System.
(f) Financing. Beginning July 1, 1995, all revenues
arising from the administration of the health benefit
programs established under Article 16 of the Illinois Pension
Code or this Section shall be deposited into the Teacher
Health Insurance Security Fund, which is hereby created as a
nonappropriated trust fund to be held outside the State
Treasury, with the State Treasurer as custodian. Any
interest earned on moneys in the Teacher Health Insurance
Security Fund shall be deposited into the Fund.
Moneys in the Teacher Health Insurance Security Fund
shall be used only to pay the costs of the health benefit
program established under this Section, including associated
administrative costs, and the costs associated with the
health benefit program established under Article 16 of the
Illinois Pension Code, as authorized in this Section.
Beginning July 1, 1995, the Department of Central Management
Services may make expenditures from the Teacher Health
Insurance Security Fund for those costs.
After other funds authorized for the payment of the costs
of the health benefit program established under Article 16 of
the Illinois Pension Code are exhausted and until January 1,
1996 (or such later date as may be agreed upon by the
Director of Central Management Services and the Secretary of
the Teachers' Retirement System), the Secretary of the
Teachers' Retirement System may make expenditures from the
Teacher Health Insurance Security Fund as necessary to pay up
to 75% of the cost of providing health coverage to eligible
benefit recipients (as defined in Sections 16-153.1 and
16-153.3 of the Illinois Pension Code) who are enrolled in
the Article 16 health benefit program and to facilitate the
transfer of administration of the health benefit program to
the Department of Central Management Services.
(g) Contract for benefits. The Director shall by
contract, self-insurance, or otherwise make available the
program of health benefits for TRS benefit recipients and
their TRS dependent beneficiaries that is provided for in
this Section. The contract or other arrangement for the
provision of these health benefits shall be on terms deemed
by the Director to be in the best interest of the State of
Illinois and the TRS benefit recipients based on, but not
limited to, such criteria as administrative cost, service
capabilities of the carrier or other contractor, and the
costs of the benefits.
(h) Continuation and termination of program. It is the
intention of the General Assembly that the program of health
benefits provided under this Section be maintained on an
ongoing, affordable basis through June 30, 2004. The program
of health benefits provided under this Section is terminated
on July 1, 2004.
The program of health benefits provided under this
Section may be amended by the State and is not intended to be
a pension or retirement benefit subject to protection under
Article XIII, Section 5 of the Illinois Constitution.
(i) Repeal. This Section is repealed on July 1, 2004.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
(5 ILCS 375/6.6)
(Section scheduled to be repealed on July 1, 2004)
Sec. 6.6. Contributions to the Teacher Health Insurance
Security Fund.
(a) Beginning July 1, 1995, all active contributors of
the Teachers' Retirement System (established under Article 16
of the Illinois Pension Code) who are not employees of a
department as defined in Section 3 of this Act shall make
contributions toward the cost of annuitant and survivor
health benefits. These contributions shall be at the
following rates: until January 1, 2002, rate of 0.5% of
salary; beginning January 1, 2002, 0.65% of salary; beginning
July 1, 2003, 0.75% of salary.
These contributions shall be deducted by the employer and
paid to the System as service agent for the Department of
Central Management Services. The System may use the same
processes for collecting the contributions required by this
subsection that it uses to collect contributions received
from school districts and other covered employers under
Sections 16-154 and 16-155 of the Illinois Pension Code.
An employer may agree to pick up or pay the contributions
required under this subsection on behalf of the teacher; such
contributions shall be deemed to have to have been paid by
the teacher. Beginning January 1, 2002, if the employer does
not directly pay the required member contribution, then the
employer shall reduce the member's salary by an amount equal
to the required contribution and shall then pay the
contribution on behalf of the member. This reduction shall
not change the amounts reported as creditable earnings to the
Teachers' Retirement System.
A person who purchases optional service credit under
Article 16 of the Illinois Pension Code for a period after
June 30, 1995 must also make a contribution under this
subsection for that optional credit, at the rate provided in
subsection (a), based on of 0.5% of the salary used in
computing the optional service credit, plus interest on this
employee contribution. This contribution shall be collected
by the System as service agent for the Department of Central
Management Services. The contribution required under this
subsection for the optional service credit must be paid in
full before any annuity based on that credit begins.
(a-5) Beginning January 1, 2002, every employer of a
teacher (other than an employer that is a department as
defined in Section 3 of this Act) shall pay an employer
contribution toward the cost of annuitant and survivor health
benefits. These contributions shall be computed as follows:
(1) Beginning January 1, 2002 through June 30,
2003, the employer contribution shall be equal to 0.4% of
each teacher's salary.
(2) Beginning July 1, 2003, the employer
contribution shall be equal to 0.5% of each teacher's
salary.
These contributions shall be paid by the employer to the
System as service agent for the Department of Central
Management Services. The System may use the same processes
for collecting the contributions required by this subsection
that it uses to collect contributions received from school
districts and other covered employers under the Illinois
Pension Code.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
(b) The Teachers' Retirement System shall promptly
deposit all moneys collected under subsections subsection (a)
and (a-5) of this Section into the Teacher Health Insurance
Security Fund created in Section 6.5 of this Act. The moneys
collected under this Section shall be used only for the
purposes authorized in Section 6.5 of this Act and shall not
be considered to be assets of the Teachers' Retirement
System. Contributions made under this Section are not
transferable to other pension funds or retirement systems and
are not refundable upon termination of service.
(c) On or before November 15 of each year, the Board of
Trustees of the Teachers' Retirement System shall certify to
the Governor, the Director of Central Management Services,
and the State Comptroller its estimate of the total amount of
contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year. The amount certified shall be
decreased or increased each year by the amount that the
actual active teacher contributions either fell short of or
exceeded the estimate used by the Board in making the
certification for the previous fiscal year. The
certification shall include a detailed explanation of the
methods and information that the Board relied upon in
preparing its estimate. As soon as possible after the
effective date of this amendatory Act of the 92nd General
Assembly Section, the Board shall recalculate and recertify
its certifications for fiscal years 2002 and 2003 submit its
estimate for fiscal year 1996.
(d) Beginning in fiscal year 1996, on the first day of
each month, or as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund to the Teacher Health Insurance
Security Fund 1/12 of the annual amount appropriated for that
fiscal year to the State Comptroller for deposit into the
Teacher Health Insurance Security Fund under Section 1.3 of
the State Pension Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section,
the definitions that apply to Article 16 of the Illinois
Pension Code apply to this Section.
(f) This Section is repealed on July 1, 2004.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95;
90-448, eff. 8-16-97.)
Section 10. The Department of Central Management
Services Law of the Civil Administrative Code of Illinois is
amended by adding Section 405-22 as follows:
(20 ILCS 405/405-22 new)
(Section scheduled to be repealed on July 1, 2002)
Sec. 405-22. Teacher Health Insurance Funding Task
Force.
(a) A Teacher Health Insurance Funding Task Force is
hereby created within the Department of Central Management
Services. The Task Force shall consist of 23 members
appointed as follows:
(1) Three members appointed by the President of the
Senate.
(2) Three members appointed by the Minority Leader
of the Senate.
(3) Three members appointed by the Speaker of the
House of Representatives.
(4) Three members appointed by the Minority Leader
of the House of Representatives.
(5) One member appointed by the Illinois Retired
Teachers Association.
(6) One member appointed by the Illinois Education
Association.
(7) One member appointed by the Illinois Federation
of Teachers.
(8) One member appointed by the Illinois
Association of School Boards.
(9) One member appointed by the Illinois
Association of School Administrators.
(10) One member appointed by the Illinois
Association of School Business Officials.
(11) Three members appointed by the Governor,
including one who has experience in the insurance
industry.
(12) The Director of Central Management Services,
ex officio, or a person designated by the Director.
(13) The Executive Director of the Teachers'
Retirement System of Illinois, ex officio, or a person
designated by the Executive Director.
Entities making appointments shall do so by filing their
respective designations, in writing, with the Director of
Central Management Services.
One of the members appointed by the Governor shall serve
as the Chair of the Task Force.
(b) The Task Force shall convene on December 1, 2001 and
thereafter meet at the call of the chair. Members of the
Task Force shall not be compensated for their service.
(c) The Task Force shall study the funding of the
Teacher Health Insurance Security Fund and the health benefit
programs that receive funding from that Fund.
The Task Force shall report its findings and
recommendations to the Governor and the General Assembly on
or before April 1, 2002.
(d) The Task Force is abolished and this Section is
repealed on July 1, 2002.
Section 15. The State Finance Act is amended by changing
Section 8g as follows:
(30 ILCS 105/8g)
Sec. 8g. Transfers from General Revenue Fund.
(a) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $10,000,000 from the
General Revenue Fund to the Motor Vehicle License Plate Fund
created by Senate Bill 1028 of the 91st General Assembly.
(b) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $25,000,000 from the
General Revenue Fund to the Fund for Illinois' Future created
by Senate Bill 1066 of the 91st General Assembly.
(c) In addition to any other transfers that may be
provided for by law, on August 30 of each fiscal year's
license period, the Illinois Liquor Control Commission shall
direct and the State Comptroller and State Treasurer shall
transfer from the General Revenue Fund to the Youth
Alcoholism and Substance Abuse Prevention Fund an amount
equal to the number of retail liquor licenses issued for that
fiscal year multiplied by $50.
(d) The payments to programs required under subsection
(d) of Section 28.1 of the Horse Racing Act of 1975 shall be
made, pursuant to appropriation, from the special funds
referred to in the statutes cited in that subsection, rather
than directly from the General Revenue Fund.
Beginning January 1, 2000, on the first day of each
month, or as soon as may be practical thereafter, the State
Comptroller shall direct and the State Treasurer shall
transfer from the General Revenue Fund to each of the special
funds from which payments are to be made under Section
28.1(d) of the Horse Racing Act of 1975 an amount equal to
1/12 of the annual amount required for those payments from
that special fund, which annual amount shall not exceed the
annual amount for those payments from that special fund for
the calendar year 1998. The special funds to which transfers
shall be made under this subsection (d) include, but are not
necessarily limited to, the Agricultural Premium Fund; the
Metropolitan Exposition Auditorium and Office Building Fund;
the Fair and Exposition Fund; the Standardbred Breeders Fund;
the Thoroughbred Breeders Fund; and the Illinois Veterans'
Rehabilitation Fund.
(e) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, but in no event later than June 30, 2000, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $15,000,000 from the General Revenue Fund
to the Fund for Illinois' Future.
(f) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 91st General
Assembly, but in no event later than June 30, 2000, the State
Comptroller shall direct and the State Treasurer shall
transfer the sum of $70,000,000 from the General Revenue Fund
to the Long-Term Care Provider Fund.
(f-1) In fiscal year 2002, in addition to any other
transfers that may be provided for by law, at the direction
of and upon notification from the Governor, the State
Comptroller shall direct and the State Treasurer shall
transfer amounts not exceeding a total of $160,000,000 from
the General Revenue Fund to the Long-Term Care Provider Fund.
(g) In addition to any other transfers that may be
provided for by law, on July 1, 2001, or as soon thereafter
as may be practical, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $1,200,000 from
the General Revenue Fund to the Violence Prevention Fund.
(h) In each of fiscal years 2002 through 2007, but not
thereafter, in addition to any other transfers that may be
provided for by law, the State Comptroller shall direct and
the State Treasurer shall transfer $5,000,000 from the
General Revenue Fund to the Tourism Promotion Fund.
(i) On or after July 1, 2001 and until May 1, 2002, in
addition to any other transfers that may be provided for by
law, at the direction of and upon notification from the
Governor, the State Comptroller shall direct and the State
Treasurer shall transfer amounts not exceeding a total of
$80,000,000 from the General Revenue Fund to the Tobacco
Settlement Recovery Fund. Any amounts so transferred shall
be re-transferred by the State Comptroller and the State
Treasurer from the Tobacco Settlement Recovery Fund to the
General Revenue Fund at the direction of and upon
notification from the Governor, but in any event on or before
June 30, 2002.
(j) On or after July 1, 2001 and no later than June 30,
2002, in addition to any other transfers that may be provided
for by law, at the direction of and upon notification from
the Governor, the State Comptroller shall direct and the
State Treasurer shall transfer amounts not to exceed the
following sums into the Statistical Services Revolving Fund:
From the General Revenue Fund............... $8,450,000
From the Public Utility Fund................ 1,700,000
From the Transportation Regulatory Fund..... 2,650,000
From the Title III Social Security and
Employment Fund........................... 3,700,000
From the Professions Indirect Cost Fund..... 4,050,000
From the Underground Storage Tank Fund...... 550,000
From the Agricultural Premium Fund.......... 750,000
From the State Pensions Fund................ 200,000
From the Road Fund.......................... 2,000,000
From the Health Facilities
Planning Fund............................. 1,000,000
From the Savings and Residential Finance
Regulatory Fund........................... 130,800
From the Appraisal Administration Fund...... 28,600
From the Pawnbroker Regulation Fund......... 3,600
From the Auction Regulation
Administration Fund....................... 35,800
From the Bank and Trust Company Fund........ 634,800
From the Real Estate License
Administration Fund....................... 313,600
(k) In addition to any other transfers that may be
provided for by law, as soon as may be practical after the
effective date of this amendatory Act of the 92nd General
Assembly, the State Comptroller shall direct and the State
Treasurer shall transfer the sum of $2,000,000 from the
General Revenue Fund to the Teachers Health Insurance
Security Fund.
(k-1) In addition to any other transfers that may be
provided for by law, on July 1, 2002, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $2,000,000 from
the General Revenue Fund to the Teachers Health Insurance
Security Fund.
(k-2) In addition to any other transfers that may be
provided for by law, on July 1, 2003, or as soon as may be
practical thereafter, the State Comptroller shall direct and
the State Treasurer shall transfer the sum of $2,000,000 from
the General Revenue Fund to the Teachers Health Insurance
Security Fund.
(Source: P.A. 91-25, eff. 6-9-99; 91-704, eff. 5-17-00;
92-11, eff. 6-11-01.)
Section 20. The Illinois Pension Code is amended by
changing Section 16-158 as follows:
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded
basis in accordance with actuarial recommendations.
The Board shall determine the amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board and the recommendations of the actuary, using the
formula in subsection (b-3).
(a-1) Annually, on or before November 15, the board
shall certify to the Governor the amount of the required
State contribution for the coming fiscal year. The
certification shall include a copy of the actuarial
recommendations upon which it is based.
(b) Through State fiscal year 1995, the State
contributions shall be paid to the System in accordance with
Section 18-7 of the School Code.
(b-1) Beginning in State fiscal year 1996, on the 15th
day of each month, or as soon thereafter as may be
practicable, the Board shall submit vouchers for payment of
State contributions to the System, in a total monthly amount
of one-twelfth of the required annual State contribution
certified under subsection (a-1). These vouchers shall be
paid by the State Comptroller and Treasurer by warrants drawn
on the funds appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under
Section 8.12 of the State Finance Act and Section 1 of the
State Pension Funds Continuing Appropriation Act) is less
than the amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under
the continuing appropriation authority provided in Section
1.1 of the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund
apportioned to school districts not coming under this System
shall not be diminished or affected by the provisions of this
Article.
(b-3) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that in the following specified State fiscal years, the State
contribution to the System shall not be less than the
following indicated percentages of the applicable employee
payroll, even if the indicated percentage will produce a
State contribution in excess of the amount otherwise required
under this subsection and subsection (a), and notwithstanding
any contrary certification made under subsection (a-1) before
the effective date of this amendatory Act of 1998: 10.02% in
FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
2002; 12.86% in FY 2003; 13.56% in FY 2004; 14.25% in FY
2005; 14.95% in FY 2006; 15.65% in FY 2007; 16.34% in FY
2008; 17.04% in FY 2009; and 17.74% in FY 2010.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
(c) Payment of the required State contributions and of
all pensions, retirement annuities, death benefits, refunds,
and other benefits granted under or assumed by this System,
and all expenses in connection with the administration and
operation thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs
based upon that service, as determined by the System.
Employer contributions, based on salary paid to members from
federal funds, may be forwarded by the distributing agency of
the State of Illinois to the System prior to allocation, in
an amount determined in accordance with guidelines
established by such agency and the System.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be
forwarded monthly in accordance with guidelines established
by the System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf
of the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999,
the employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the
employer contribution shall be equal to 0.58% of each
teacher's salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from this amendatory Act of
1998.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January
1, 2002 through June 30, 2003, equal to the amount paid by
that employer under subsection (a-5) of Section 6.6 of the
State Employees Group Insurance Act of 1971 with respect to
salaries paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by this amendatory Act of 1998 is the
responsibility of the teacher and not the teacher's employer,
unless the employer agrees, through collective bargaining or
otherwise, to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer
and the employee organization shall jointly certify to the
System the existence of the contractual requirement, in such
form as the System may prescribe. This exclusion shall cease
upon the termination, extension, or renewal of the contract
at any time after May 1, 1998.
(Source: P.A. 90-582, eff. 5-27-98.)
Section 90. The State Mandates Act is amended by adding
Section 8.26 as follows:
(30 ILCS 805/8.26 new)
Sec. 8.26. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 92nd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly November 29, 2001.
Approved December 20, 2001.
Effective December 20, 2001.
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