101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4091

 

Introduced 1/16/2020, by Rep. Allen Skillicorn

 

SYNOPSIS AS INTRODUCED:
 
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
30 ILCS 805/8.44 new

    Amends the State Universities Article of the Illinois Pension Code. Requires the actual employer to contribute an amount equal to the full employer's normal cost of the benefits earned under the System that result from employment by that employer, to be paid to the System on a payroll-by-payroll basis, using the percentage of earnings determined on a System-wide basis and certified by the System to all employers for use in the applicable fiscal year. Requires immediate and annual certification of the applicable percentage rate. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 16449 RPS 65828 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4091LRB101 16449 RPS 65828 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 15-155 and 15-165 as follows:
 
6    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
7    Sec. 15-155. Employer contributions.
8    (a) The State of Illinois shall make contributions by
9appropriations of amounts which, together with the other
10employer contributions and other contributions from trust,
11federal, and other funds, employee contributions, income from
12investments, and other income of this System, will be
13sufficient to meet the cost of maintaining and administering
14the System on a 90% funded basis in accordance with actuarial
15recommendations.
16    The Board shall determine the amount of State contributions
17required for each fiscal year on the basis of the actuarial
18tables and other assumptions adopted by the Board and the
19recommendations of the actuary, using the formula in subsection
20(a-1).
21    (a-1) For State fiscal years 2012 through 2045, the minimum
22contribution to the System to be made by the State for each
23fiscal year shall be an amount determined by the System to be

 

 

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1sufficient to bring the total assets of the System up to 90% of
2the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method. Beginning
8immediately upon the effective date of this amendatory Act of
9the 101st General Assembly, the required State contribution
10shall take into consideration the amount of the actual-employer
11normal-cost contribution required under subsection (a-5).
12    For each of State fiscal years 2018, 2019, and 2020, the
13State shall make an additional contribution to the System equal
14to 2% of the total payroll of each employee who is deemed to
15have elected the benefits under Section 1-161 or who has made
16the election under subsection (c) of Section 1-161.
17    A change in an actuarial or investment assumption that
18increases or decreases the required State contribution and
19first applies in State fiscal year 2018 or thereafter shall be
20implemented in equal annual amounts over a 5-year period
21beginning in the State fiscal year in which the actuarial
22change first applies to the required State contribution.
23    A change in an actuarial or investment assumption that
24increases or decreases the required State contribution and
25first applied to the State contribution in fiscal year 2014,
262015, 2016, or 2017 shall be implemented:

 

 

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1        (i) as already applied in State fiscal years before
2    2018; and
3        (ii) in the portion of the 5-year period beginning in
4    the State fiscal year in which the actuarial change first
5    applied that occurs in State fiscal year 2018 or
6    thereafter, by calculating the change in equal annual
7    amounts over that 5-year period and then implementing it at
8    the resulting annual rate in each of the remaining fiscal
9    years in that 5-year period.
10    For State fiscal years 1996 through 2005, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13so that by State fiscal year 2011, the State is contributing at
14the rate required under this Section.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2006 is
17$166,641,900.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2007 is
20$252,064,100.
21    For each of State fiscal years 2008 through 2009, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24from the required State contribution for State fiscal year
252007, so that by State fiscal year 2011, the State is
26contributing at the rate otherwise required under this Section.

 

 

HB4091- 4 -LRB101 16449 RPS 65828 b

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2010 is
3$702,514,000 and shall be made from the State Pensions Fund and
4proceeds of bonds sold in fiscal year 2010 pursuant to Section
57.2 of the General Obligation Bond Act, less (i) the pro rata
6share of bond sale expenses determined by the System's share of
7total bond proceeds, (ii) any amounts received from the General
8Revenue Fund in fiscal year 2010, (iii) any reduction in bond
9proceeds due to the issuance of discounted bonds, if
10applicable.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2011 is
13the amount recertified by the System on or before April 1, 2011
14pursuant to Section 15-165 and shall be made from the State
15Pensions Fund and proceeds of bonds sold in fiscal year 2011
16pursuant to Section 7.2 of the General Obligation Bond Act,
17less (i) the pro rata share of bond sale expenses determined by
18the System's share of total bond proceeds, (ii) any amounts
19received from the General Revenue Fund in fiscal year 2011, and
20(iii) any reduction in bond proceeds due to the issuance of
21discounted bonds, if applicable.
22    Beginning in State fiscal year 2046, the minimum State
23contribution for each fiscal year shall be the amount needed to
24maintain the total assets of the System at 90% of the total
25actuarial liabilities of the System.
26    Amounts received by the System pursuant to Section 25 of

 

 

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1the Budget Stabilization Act or Section 8.12 of the State
2Finance Act in any fiscal year do not reduce and do not
3constitute payment of any portion of the minimum State
4contribution required under this Article in that fiscal year.
5Such amounts shall not reduce, and shall not be included in the
6calculation of, the required State contributions under this
7Article in any future year until the System has reached a
8funding ratio of at least 90%. A reference in this Article to
9the "required State contribution" or any substantially similar
10term does not include or apply to any amounts payable to the
11System under Section 25 of the Budget Stabilization Act.
12    Notwithstanding any other provision of this Section, the
13required State contribution for State fiscal year 2005 and for
14fiscal year 2008 and each fiscal year thereafter, as calculated
15under this Section and certified under Section 15-165, shall
16not exceed an amount equal to (i) the amount of the required
17State contribution that would have been calculated under this
18Section for that fiscal year if the System had not received any
19payments under subsection (d) of Section 7.2 of the General
20Obligation Bond Act, minus (ii) the portion of the State's
21total debt service payments for that fiscal year on the bonds
22issued in fiscal year 2003 for the purposes of that Section
237.2, as determined and certified by the Comptroller, that is
24the same as the System's portion of the total moneys
25distributed under subsection (d) of Section 7.2 of the General
26Obligation Bond Act. In determining this maximum for State

 

 

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1fiscal years 2008 through 2010, however, the amount referred to
2in item (i) shall be increased, as a percentage of the
3applicable employee payroll, in equal increments calculated
4from the sum of the required State contribution for State
5fiscal year 2007 plus the applicable portion of the State's
6total debt service payments for fiscal year 2007 on the bonds
7issued in fiscal year 2003 for the purposes of Section 7.2 of
8the General Obligation Bond Act, so that, by State fiscal year
92011, the State is contributing at the rate otherwise required
10under this Section.
11    (a-2) Beginning in fiscal year 2018, each employer under
12this Article shall pay to the System a required contribution
13determined as a percentage of projected payroll and sufficient
14to produce an annual amount equal to:
15        (i) for each of fiscal years 2018, 2019, and 2020, the
16    defined benefit normal cost of the defined benefit plan,
17    less the employee contribution, for each employee of that
18    employer who has elected or who is deemed to have elected
19    the benefits under Section 1-161 or who has made the
20    election under subsection (c) of Section 1-161; for fiscal
21    year 2021 and each fiscal year thereafter, the defined
22    benefit normal cost of the defined benefit plan, less the
23    employee contribution, plus 2%, for each employee of that
24    employer who has elected or who is deemed to have elected
25    the benefits under Section 1-161 or who has made the
26    election under subsection (c) of Section 1-161; plus

 

 

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1        (ii) the amount required for that fiscal year to
2    amortize any unfunded actuarial accrued liability
3    associated with the present value of liabilities
4    attributable to the employer's account under Section
5    15-155.2, determined as a level percentage of payroll over
6    a 30-year rolling amortization period.
7    In determining contributions required under item (i) of
8this subsection, the System shall determine an aggregate rate
9for all employers, expressed as a percentage of projected
10payroll.
11    In determining the contributions required under item (ii)
12of this subsection, the amount shall be computed by the System
13on the basis of the actuarial assumptions and tables used in
14the most recent actuarial valuation of the System that is
15available at the time of the computation.
16    The contributions required under this subsection (a-2)
17shall be paid by an employer concurrently with that employer's
18payroll payment period. The State, as the actual employer of an
19employee, shall make the required contributions under this
20subsection.
21    As used in this subsection, "academic year" means the
2212-month period beginning September 1.
23    (a-5) Beginning immediately upon the effective date of this
24amendatory Act of the 101st General Assembly, the actual
25employer of a participating employee shall contribute an amount
26equal to the full employer's normal cost of the benefits earned

 

 

HB4091- 8 -LRB101 16449 RPS 65828 b

1under this System that result from employment by that employer,
2to be paid to the System on a payroll-by-payroll basis, using
3the percentage of earnings determined on a System-wide basis
4and certified by the System to all employers for use in the
5applicable fiscal year.
6    (b) If an employee is paid from trust or federal funds, the
7employer shall pay to the Board contributions from those funds
8which are sufficient to cover the accruing normal costs on
9behalf of the employee. However, universities having employees
10who are compensated out of local auxiliary funds, income funds,
11or service enterprise funds are not required to pay such
12contributions on behalf of those employees. The local auxiliary
13funds, income funds, and service enterprise funds of
14universities shall not be considered trust funds for the
15purpose of this Article, but funds of alumni associations,
16foundations, and athletic associations which are affiliated
17with the universities included as employers under this Article
18and other employers which do not receive State appropriations
19are considered to be trust funds for the purpose of this
20Article.
21    (b-1) The City of Urbana and the City of Champaign shall
22each make employer contributions to this System for their
23respective firefighter employees who participate in this
24System pursuant to subsection (h) of Section 15-107. The rate
25of contributions to be made by those municipalities shall be
26determined annually by the Board on the basis of the actuarial

 

 

HB4091- 9 -LRB101 16449 RPS 65828 b

1assumptions adopted by the Board and the recommendations of the
2actuary, and shall be expressed as a percentage of salary for
3each such employee. The Board shall certify the rate to the
4affected municipalities as soon as may be practical. The
5employer contributions required under this subsection shall be
6remitted by the municipality to the System at the same time and
7in the same manner as employee contributions.
8    (c) Through State fiscal year 1995: The total employer
9contribution shall be apportioned among the various funds of
10the State and other employers, whether trust, federal, or other
11funds, in accordance with actuarial procedures approved by the
12Board. State of Illinois contributions for employers receiving
13State appropriations for personal services shall be payable
14from appropriations made to the employers or to the System. The
15contributions for Class I community colleges covering earnings
16other than those paid from trust and federal funds, shall be
17payable solely from appropriations to the Illinois Community
18College Board or the System for employer contributions.
19    (d) Beginning in State fiscal year 1996, the required State
20contributions to the System shall be appropriated directly to
21the System and shall be payable through vouchers issued in
22accordance with subsection (c) of Section 15-165, except as
23provided in subsection (g).
24    (e) The State Comptroller shall draw warrants payable to
25the System upon proper certification by the System or by the
26employer in accordance with the appropriation laws and this

 

 

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1Code.
2    (f) Normal costs under this Section means liability for
3pensions and other benefits which accrues to the System because
4of the credits earned for service rendered by the participants
5during the fiscal year and expenses of administering the
6System, but shall not include the principal of or any
7redemption premium or interest on any bonds issued by the Board
8or any expenses incurred or deposits required in connection
9therewith.
10    (g) If June 4, 2018 (Public Act 100-587) the amount of a
11participant's earnings for any academic year used to determine
12the final rate of earnings, determined on a full-time
13equivalent basis, exceeds the amount of his or her earnings
14with the same employer for the previous academic year,
15determined on a full-time equivalent basis, by more than 6%,
16the participant's employer shall pay to the System, in addition
17to all other payments required under this Section and in
18accordance with guidelines established by the System, the
19present value of the increase in benefits resulting from the
20portion of the increase in earnings that is in excess of 6%.
21This present value shall be computed by the System on the basis
22of the actuarial assumptions and tables used in the most recent
23actuarial valuation of the System that is available at the time
24of the computation. The System may require the employer to
25provide any pertinent information or documentation.
26    Whenever it determines that a payment is or may be required

 

 

HB4091- 11 -LRB101 16449 RPS 65828 b

1under this subsection (g), the System shall calculate the
2amount of the payment and bill the employer for that amount.
3The bill shall specify the calculations used to determine the
4amount due. If the employer disputes the amount of the bill, it
5may, within 30 days after receipt of the bill, apply to the
6System in writing for a recalculation. The application must
7specify in detail the grounds of the dispute and, if the
8employer asserts that the calculation is subject to subsection
9(h) or (i) of this Section, must include an affidavit setting
10forth and attesting to all facts within the employer's
11knowledge that are pertinent to the applicability of that
12subsection. Upon receiving a timely application for
13recalculation, the System shall review the application and, if
14appropriate, recalculate the amount due.
15    The employer contributions required under this subsection
16(g) may be paid in the form of a lump sum within 90 days after
17receipt of the bill. If the employer contributions are not paid
18within 90 days after receipt of the bill, then interest will be
19charged at a rate equal to the System's annual actuarially
20assumed rate of return on investment compounded annually from
21the 91st day after receipt of the bill. Payments must be
22concluded within 3 years after the employer's receipt of the
23bill.
24    When assessing payment for any amount due under this
25subsection (g), the System shall include earnings, to the
26extent not established by a participant under Section 15-113.11

 

 

HB4091- 12 -LRB101 16449 RPS 65828 b

1or 15-113.12, that would have been paid to the participant had
2the participant not taken (i) periods of voluntary or
3involuntary furlough occurring on or after July 1, 2015 and on
4or before June 30, 2017 or (ii) periods of voluntary pay
5reduction in lieu of furlough occurring on or after July 1,
62015 and on or before June 30, 2017. Determining earnings that
7would have been paid to a participant had the participant not
8taken periods of voluntary or involuntary furlough or periods
9of voluntary pay reduction shall be the responsibility of the
10employer, and shall be reported in a manner prescribed by the
11System.
12    This subsection (g) does not apply to (1) Tier 2 hybrid
13plan members and (2) Tier 2 defined benefit members who first
14participate under this Article on or after the implementation
15date of the Optional Hybrid Plan.
16    (g-1) (Blank). June 4, 2018 (Public Act 100-587)
17    (h) This subsection (h) applies only to payments made or
18salary increases given on or after June 1, 2005 but before July
191, 2011. The changes made by Public Act 94-1057 shall not
20require the System to refund any payments received before July
2131, 2006 (the effective date of Public Act 94-1057).
22    When assessing payment for any amount due under subsection
23(g), the System shall exclude earnings increases paid to
24participants under contracts or collective bargaining
25agreements entered into, amended, or renewed before June 1,
262005.

 

 

HB4091- 13 -LRB101 16449 RPS 65828 b

1    When assessing payment for any amount due under subsection
2(g), the System shall exclude earnings increases paid to a
3participant at a time when the participant is 10 or more years
4from retirement eligibility under Section 15-135.
5    When assessing payment for any amount due under subsection
6(g), the System shall exclude earnings increases resulting from
7overload work, including a contract for summer teaching, or
8overtime when the employer has certified to the System, and the
9System has approved the certification, that: (i) in the case of
10overloads (A) the overload work is for the sole purpose of
11academic instruction in excess of the standard number of
12instruction hours for a full-time employee occurring during the
13academic year that the overload is paid and (B) the earnings
14increases are equal to or less than the rate of pay for
15academic instruction computed using the participant's current
16salary rate and work schedule; and (ii) in the case of
17overtime, the overtime was necessary for the educational
18mission.
19    When assessing payment for any amount due under subsection
20(g), the System shall exclude any earnings increase resulting
21from (i) a promotion for which the employee moves from one
22classification to a higher classification under the State
23Universities Civil Service System, (ii) a promotion in academic
24rank for a tenured or tenure-track faculty position, or (iii) a
25promotion that the Illinois Community College Board has
26recommended in accordance with subsection (k) of this Section.

 

 

HB4091- 14 -LRB101 16449 RPS 65828 b

1These earnings increases shall be excluded only if the
2promotion is to a position that has existed and been filled by
3a member for no less than one complete academic year and the
4earnings increase as a result of the promotion is an increase
5that results in an amount no greater than the average salary
6paid for other similar positions.
7    (i) When assessing payment for any amount due under
8subsection (g), the System shall exclude any salary increase
9described in subsection (h) of this Section given on or after
10July 1, 2011 but before July 1, 2014 under a contract or
11collective bargaining agreement entered into, amended, or
12renewed on or after June 1, 2005 but before July 1, 2011.
13Notwithstanding any other provision of this Section, any
14payments made or salary increases given after June 30, 2014
15shall be used in assessing payment for any amount due under
16subsection (g) of this Section.
17    (j) The System shall prepare a report and file copies of
18the report with the Governor and the General Assembly by
19January 1, 2007 that contains all of the following information:
20        (1) The number of recalculations required by the
21    changes made to this Section by Public Act 94-1057 for each
22    employer.
23        (2) The dollar amount by which each employer's
24    contribution to the System was changed due to
25    recalculations required by Public Act 94-1057.
26        (3) The total amount the System received from each

 

 

HB4091- 15 -LRB101 16449 RPS 65828 b

1    employer as a result of the changes made to this Section by
2    Public Act 94-4.
3        (4) The increase in the required State contribution
4    resulting from the changes made to this Section by Public
5    Act 94-1057.
6    (j-5) For State fiscal years beginning on or after July 1,
72017, if the amount of a participant's earnings for any State
8fiscal year exceeds the amount of the salary set by law for the
9Governor that is in effect on July 1 of that fiscal year, the
10participant's employer shall pay to the System, in addition to
11all other payments required under this Section and in
12accordance with guidelines established by the System, an amount
13determined by the System to be equal to the employer normal
14cost, as established by the System and expressed as a total
15percentage of payroll, multiplied by the amount of earnings in
16excess of the amount of the salary set by law for the Governor.
17This amount shall be computed by the System on the basis of the
18actuarial assumptions and tables used in the most recent
19actuarial valuation of the System that is available at the time
20of the computation. The System may require the employer to
21provide any pertinent information or documentation.
22    Whenever it determines that a payment is or may be required
23under this subsection, the System shall calculate the amount of
24the payment and bill the employer for that amount. The bill
25shall specify the calculation used to determine the amount due.
26If the employer disputes the amount of the bill, it may, within

 

 

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130 days after receipt of the bill, apply to the System in
2writing for a recalculation. The application must specify in
3detail the grounds of the dispute. Upon receiving a timely
4application for recalculation, the System shall review the
5application and, if appropriate, recalculate the amount due.
6    The employer contributions required under this subsection
7may be paid in the form of a lump sum within 90 days after
8issuance of the bill. If the employer contributions are not
9paid within 90 days after issuance of the bill, then interest
10will be charged at a rate equal to the System's annual
11actuarially assumed rate of return on investment compounded
12annually from the 91st day after issuance of the bill. All
13payments must be received within 3 years after issuance of the
14bill. If the employer fails to make complete payment, including
15applicable interest, within 3 years, then the System may, after
16giving notice to the employer, certify the delinquent amount to
17the State Comptroller, and the Comptroller shall thereupon
18deduct the certified delinquent amount from State funds payable
19to the employer and pay them instead to the System.
20    This subsection (j-5) does not apply to a participant's
21earnings to the extent an employer pays the employer normal
22cost of such earnings.
23    The changes made to this subsection (j-5) by Public Act
24100-624 are intended to apply retroactively to July 6, 2017
25(the effective date of Public Act 100-23).
26    (k) The Illinois Community College Board shall adopt rules

 

 

HB4091- 17 -LRB101 16449 RPS 65828 b

1for recommending lists of promotional positions submitted to
2the Board by community colleges and for reviewing the
3promotional lists on an annual basis. When recommending
4promotional lists, the Board shall consider the similarity of
5the positions submitted to those positions recognized for State
6universities by the State Universities Civil Service System.
7The Illinois Community College Board shall file a copy of its
8findings with the System. The System shall consider the
9findings of the Illinois Community College Board when making
10determinations under this Section. The System shall not exclude
11any earnings increases resulting from a promotion when the
12promotion was not submitted by a community college. Nothing in
13this subsection (k) shall require any community college to
14submit any information to the Community College Board.
15    (l) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19    As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26    (m) For purposes of determining the required State

 

 

HB4091- 18 -LRB101 16449 RPS 65828 b

1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
5100-624, eff. 7-20-18; 101-10, eff. 6-5-19; 101-81, eff.
67-12-19; revised 8-6-19.)
 
7    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
8    Sec. 15-165. To certify amounts and submit vouchers.
9    (a) The Board shall certify to the Governor on or before
10November 15 of each year until November 15, 2011 the
11appropriation required from State funds for the purposes of
12this System for the following fiscal year. The certification
13under this subsection (a) shall include a copy of the actuarial
14recommendations upon which it is based and shall specifically
15identify the System's projected State normal cost for that
16fiscal year and the projected State cost for the self-managed
17plan for that fiscal year.
18    On or before May 1, 2004, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2005, taking
21into account the amounts appropriated to and received by the
22System under subsection (d) of Section 7.2 of the General
23Obligation Bond Act.
24    On or before July 1, 2005, the Board shall recalculate and
25recertify to the Governor the amount of the required State

 

 

HB4091- 19 -LRB101 16449 RPS 65828 b

1contribution to the System for State fiscal year 2006, taking
2into account the changes in required State contributions made
3by this amendatory Act of the 94th General Assembly.
4    On or before April 1, 2011, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2011, applying
7the changes made by Public Act 96-889 to the System's assets
8and liabilities as of June 30, 2009 as though Public Act 96-889
9was approved on that date.
10    (a-5) On or before November 1 of each year, beginning
11November 1, 2012, the Board shall submit to the State Actuary,
12the Governor, and the General Assembly a proposed certification
13of the amount of the required State contribution to the System
14for the next fiscal year, along with all of the actuarial
15assumptions, calculations, and data upon which that proposed
16certification is based. On or before January 1 of each year,
17beginning January 1, 2013, the State Actuary shall issue a
18preliminary report concerning the proposed certification and
19identifying, if necessary, recommended changes in actuarial
20assumptions that the Board must consider before finalizing its
21certification of the required State contributions. On or before
22January 15, 2013 and each January 15 thereafter, the Board
23shall certify to the Governor and the General Assembly the
24amount of the required State contribution for the next fiscal
25year. The Board's certification must note, in a written
26response to the State Actuary, any deviations from the State

 

 

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1Actuary's recommended changes, the reason or reasons for not
2following the State Actuary's recommended changes, and the
3fiscal impact of not following the State Actuary's recommended
4changes on the required State contribution.
5    (a-10) By November 1, 2017, the Board shall recalculate and
6recertify to the State Actuary, the Governor, and the General
7Assembly the amount of the State contribution to the System for
8State fiscal year 2018, taking into account the changes in
9required State contributions made by this amendatory Act of the
10100th General Assembly. The State Actuary shall review the
11assumptions and valuations underlying the Board's revised
12certification and issue a preliminary report concerning the
13proposed recertification and identifying, if necessary,
14recommended changes in actuarial assumptions that the Board
15must consider before finalizing its certification of the
16required State contributions. The Board's final certification
17must note any deviations from the State Actuary's recommended
18changes, the reason or reasons for not following the State
19Actuary's recommended changes, and the fiscal impact of not
20following the State Actuary's recommended changes on the
21required State contribution.
22    (a-15) On or after June 15, 2019, but no later than June
2330, 2019, the Board shall recalculate and recertify to the
24Governor and the General Assembly the amount of the State
25contribution to the System for State fiscal year 2019, taking
26into account the changes in required State contributions made

 

 

HB4091- 21 -LRB101 16449 RPS 65828 b

1by this amendatory Act of the 100th General Assembly. The
2recalculation shall be made using assumptions adopted by the
3Board for the original fiscal year 2019 certification. The
4monthly voucher for the 12th month of fiscal year 2019 shall be
5paid by the Comptroller after the recertification required
6pursuant to this subsection is submitted to the Governor,
7Comptroller, and General Assembly. The recertification
8submitted to the General Assembly shall be filed with the Clerk
9of the House of Representatives and the Secretary of the Senate
10in electronic form only, in the manner that the Clerk and the
11Secretary shall direct.
12    (a-20) As soon as possible, the Board shall recalculate and
13recertify to the State Actuary, the Governor, and the General
14Assembly the projected amount of the required State
15contribution to the System for the current State fiscal year,
16taking into account the actual-employer normal-cost
17contributions required by this amendatory Act of the 101st
18General Assembly.
19    (a-25) As soon as possible after the effective date of this
20amendatory act of the 101st General Assembly, the Board shall
21calculate and certify to the State Actuary, the Governor, the
22General Assembly, and each employer under this Article the rate
23of the actual-employer normal-cost contribution to the System
24for the current fiscal year, expressed as a percentage of
25earnings and determined on a System-wide basis, for use in the
26remaining portion of the applicable fiscal year.

 

 

HB4091- 22 -LRB101 16449 RPS 65828 b

1    On or before November 1 of each year, the Board shall
2calculate and certify to the State Actuary, the Governor, and
3the General Assembly, and to each employer under this Article
4(i) the rate of the actual-employer normal-cost contribution to
5the System for the next fiscal year, expressed as a percentage
6of earnings and determined on an annual, System-wide basis, and
7(ii) the projected amount of each employer's contribution for
8that fiscal year.
9    (b) The Board shall certify to the State Comptroller or
10employer, as the case may be, from time to time, by its
11chairperson and secretary, with its seal attached, the amounts
12payable to the System from the various funds.
13    (c) Beginning in State fiscal year 1996, on or as soon as
14possible after the 15th day of each month the Board shall
15submit vouchers for payment of State contributions to the
16System, in a total monthly amount of one-twelfth of the
17required annual State contribution certified under subsection
18(a). From the effective date of this amendatory Act of the 93rd
19General Assembly through June 30, 2004, the Board shall not
20submit vouchers for the remainder of fiscal year 2004 in excess
21of the fiscal year 2004 certified contribution amount
22determined under this Section after taking into consideration
23the transfer to the System under subsection (b) of Section
246z-61 of the State Finance Act. These vouchers shall be paid by
25the State Comptroller and Treasurer by warrants drawn on the
26funds appropriated to the System for that fiscal year.

 

 

HB4091- 23 -LRB101 16449 RPS 65828 b

1    If in any month the amount remaining unexpended from all
2other appropriations to the System for the applicable fiscal
3year (including the appropriations to the System under Section
48.12 of the State Finance Act and Section 1 of the State
5Pension Funds Continuing Appropriation Act) is less than the
6amount lawfully vouchered under this Section, the difference
7shall be paid from the General Revenue Fund under the
8continuing appropriation authority provided in Section 1.1 of
9the State Pension Funds Continuing Appropriation Act.
10    (d) So long as the payments received are the full amount
11lawfully vouchered under this Section, payments received by the
12System under this Section shall be applied first toward the
13employer contribution to the self-managed plan established
14under Section 15-158.2. Payments shall be applied second toward
15the employer's portion of the normal costs of the System, as
16defined in subsection (f) of Section 15-155. The balance shall
17be applied toward the unfunded actuarial liabilities of the
18System.
19    (e) In the event that the System does not receive, as a
20result of legislative enactment or otherwise, payments
21sufficient to fully fund the employer contribution to the
22self-managed plan established under Section 15-158.2 and to
23fully fund that portion of the employer's portion of the normal
24costs of the System, as calculated in accordance with Section
2515-155(a-1), then any payments received shall be applied
26proportionately to the optional retirement program established

 

 

HB4091- 24 -LRB101 16449 RPS 65828 b

1under Section 15-158.2 and to the employer's portion of the
2normal costs of the System, as calculated in accordance with
3Section 15-155(a-1).
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
5    Section 90. The State Mandates Act is amended by adding
6Section 8.44 as follows:
 
7    (30 ILCS 805/8.44 new)
8    Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8
9of this Act, no reimbursement by the State is required for the
10implementation of any mandate created by this amendatory Act of
11the 101st General Assembly.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.