101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2145

 

Introduced 2/15/2019, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-155  from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158  from Ch. 108 1/2, par. 16-158

    Amends the Illinois Pension Code. In a provision of the State Universities Article that requires an employer to make an additional contribution to the System for certain earnings increases greater than 3%, excludes earnings increases paid to a participant when the participant is 10 or more years from retirement eligibility under specified provisions and earnings increases resulting from overload work or a promotion if certain requirements are met. Provides that the exclusions apply only to payments made or salary increases given in academic years beginning on or after July 1, 2018 and that the changes made by the amendatory Act shall not require the System to refund any payment received before the effective date of the amendatory Act. In a provision of the Downstate Teacher Article that requires an employer to make an additional contribution to the System for certain salary increases greater than 3%, excludes (i) salary increases paid to a teacher when the teacher is 10 or more years from retirement eligibility under specified provisions, (ii) salary increases resulting from overload work or a promotion if certain requirements are met, and (iii) payments from the State or the State Board of Education over which the employer does not have discretion. Provides that the exclusions apply only to payments made or salary increases given in school years beginning on or after July 1, 2018 and that the changes made by the amendatory Act shall not require the System to refund any payment received before the effective date of the amendatory Act. Makes conforming changes. Effective immediately.


LRB101 08466 RPS 53542 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2145LRB101 08466 RPS 53542 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 16-158 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 from trust, federal, and other funds,
11employee contributions, income from investments, and other
12income of this System, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15    The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(a-1).
20    (a-1) For State fiscal years 2012 through 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of

 

 

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1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    For each of State fiscal years 2018, 2019, and 2020, the
8State shall make an additional contribution to the System equal
9to 2% of the total payroll of each employee who is deemed to
10have elected the benefits under Section 1-161 or who has made
11the election under subsection (c) of Section 1-161.
12    A change in an actuarial or investment assumption that
13increases or decreases the required State contribution and
14first applies in State fiscal year 2018 or thereafter shall be
15implemented in equal annual amounts over a 5-year period
16beginning in the State fiscal year in which the actuarial
17change first applies to the required State contribution.
18    A change in an actuarial or investment assumption that
19increases or decreases the required State contribution and
20first applied to the State contribution in fiscal year 2014,
212015, 2016, or 2017 shall be implemented:
22        (i) as already applied in State fiscal years before
23    2018; and
24        (ii) in the portion of the 5-year period beginning in
25    the State fiscal year in which the actuarial change first
26    applied that occurs in State fiscal year 2018 or

 

 

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1    thereafter, by calculating the change in equal annual
2    amounts over that 5-year period and then implementing it at
3    the resulting annual rate in each of the remaining fiscal
4    years in that 5-year period.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2006 is
12$166,641,900.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$252,064,100.
16    For each of State fiscal years 2008 through 2009, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19from the required State contribution for State fiscal year
202007, so that by State fiscal year 2011, the State is
21contributing at the rate otherwise required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010 is
24$702,514,000 and shall be made from the State Pensions Fund and
25proceeds of bonds sold in fiscal year 2010 pursuant to Section
267.2 of the General Obligation Bond Act, less (i) the pro rata

 

 

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1share of bond sale expenses determined by the System's share of
2total bond proceeds, (ii) any amounts received from the General
3Revenue Fund in fiscal year 2010, (iii) any reduction in bond
4proceeds due to the issuance of discounted bonds, if
5applicable.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2011 is
8the amount recertified by the System on or before April 1, 2011
9pursuant to Section 15-165 and shall be made from the State
10Pensions Fund and proceeds of bonds sold in fiscal year 2011
11pursuant to Section 7.2 of the General Obligation Bond Act,
12less (i) the pro rata share of bond sale expenses determined by
13the System's share of total bond proceeds, (ii) any amounts
14received from the General Revenue Fund in fiscal year 2011, and
15(iii) any reduction in bond proceeds due to the issuance of
16discounted bonds, if applicable.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under Section 15-165, shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

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1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (a-2) Beginning in fiscal year 2018, each employer under
7this Article shall pay to the System a required contribution
8determined as a percentage of projected payroll and sufficient
9to produce an annual amount equal to:
10        (i) for each of fiscal years 2018, 2019, and 2020, the
11    defined benefit normal cost of the defined benefit plan,
12    less the employee contribution, for each employee of that
13    employer who has elected or who is deemed to have elected
14    the benefits under Section 1-161 or who has made the
15    election under subsection (c) of Section 1-161; for fiscal
16    year 2021 and each fiscal year thereafter, the defined
17    benefit normal cost of the defined benefit plan, less the
18    employee contribution, plus 2%, for each employee of that
19    employer who has elected or who is deemed to have elected
20    the benefits under Section 1-161 or who has made the
21    election under subsection (c) of Section 1-161; plus
22        (ii) the amount required for that fiscal year to
23    amortize any unfunded actuarial accrued liability
24    associated with the present value of liabilities
25    attributable to the employer's account under Section
26    15-155.2, determined as a level percentage of payroll over

 

 

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1    a 30-year rolling amortization period.
2    In determining contributions required under item (i) of
3this subsection, the System shall determine an aggregate rate
4for all employers, expressed as a percentage of projected
5payroll.
6    In determining the contributions required under item (ii)
7of this subsection, the amount shall be computed by the System
8on the basis of the actuarial assumptions and tables used in
9the most recent actuarial valuation of the System that is
10available at the time of the computation.
11    The contributions required under this subsection (a-2)
12shall be paid by an employer concurrently with that employer's
13payroll payment period. The State, as the actual employer of an
14employee, shall make the required contributions under this
15subsection.
16    As used in this subsection, "academic year" means the
1712-month period beginning September 1.
18    (b) If an employee is paid from trust or federal funds, the
19employer shall pay to the Board contributions from those funds
20which are sufficient to cover the accruing normal costs on
21behalf of the employee. However, universities having employees
22who are compensated out of local auxiliary funds, income funds,
23or service enterprise funds are not required to pay such
24contributions on behalf of those employees. The local auxiliary
25funds, income funds, and service enterprise funds of
26universities shall not be considered trust funds for the

 

 

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1purpose of this Article, but funds of alumni associations,
2foundations, and athletic associations which are affiliated
3with the universities included as employers under this Article
4and other employers which do not receive State appropriations
5are considered to be trust funds for the purpose of this
6Article.
7    (b-1) The City of Urbana and the City of Champaign shall
8each make employer contributions to this System for their
9respective firefighter employees who participate in this
10System pursuant to subsection (h) of Section 15-107. The rate
11of contributions to be made by those municipalities shall be
12determined annually by the Board on the basis of the actuarial
13assumptions adopted by the Board and the recommendations of the
14actuary, and shall be expressed as a percentage of salary for
15each such employee. The Board shall certify the rate to the
16affected municipalities as soon as may be practical. The
17employer contributions required under this subsection shall be
18remitted by the municipality to the System at the same time and
19in the same manner as employee contributions.
20    (c) Through State fiscal year 1995: The total employer
21contribution shall be apportioned among the various funds of
22the State and other employers, whether trust, federal, or other
23funds, in accordance with actuarial procedures approved by the
24Board. State of Illinois contributions for employers receiving
25State appropriations for personal services shall be payable
26from appropriations made to the employers or to the System. The

 

 

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1contributions for Class I community colleges covering earnings
2other than those paid from trust and federal funds, shall be
3payable solely from appropriations to the Illinois Community
4College Board or the System for employer contributions.
5    (d) Beginning in State fiscal year 1996, the required State
6contributions to the System shall be appropriated directly to
7the System and shall be payable through vouchers issued in
8accordance with subsection (c) of Section 15-165, except as
9provided in subsection (g).
10    (e) The State Comptroller shall draw warrants payable to
11the System upon proper certification by the System or by the
12employer in accordance with the appropriation laws and this
13Code.
14    (f) Normal costs under this Section means liability for
15pensions and other benefits which accrues to the System because
16of the credits earned for service rendered by the participants
17during the fiscal year and expenses of administering the
18System, but shall not include the principal of or any
19redemption premium or interest on any bonds issued by the Board
20or any expenses incurred or deposits required in connection
21therewith.
22    (g) For academic years beginning on or after June 1, 2005
23and before July 1, 2018 and for earnings paid to a participant
24under a contract or collective bargaining agreement entered
25into, amended, or renewed before June 4, 2018 (the effective
26date of Public Act 100-587) this amendatory Act of the 100th

 

 

SB2145- 10 -LRB101 08466 RPS 53542 b

1General Assembly, if the amount of a participant's earnings for
2any academic year used to determine the final rate of earnings,
3determined on a full-time equivalent basis, exceeds the amount
4of his or her earnings with the same employer for the previous
5academic year, determined on a full-time equivalent basis, by
6more than 6%, the participant's employer shall pay to the
7System, in addition to all other payments required under this
8Section and in accordance with guidelines established by the
9System, the present value of the increase in benefits resulting
10from the portion of the increase in earnings that is in excess
11of 6%. This present value shall be computed by the System on
12the basis of the actuarial assumptions and tables used in the
13most recent actuarial valuation of the System that is available
14at the time of the computation. The System may require the
15employer to provide any pertinent information or
16documentation.
17    Whenever it determines that a payment is or may be required
18under this subsection (g), the System shall calculate the
19amount of the payment and bill the employer for that amount.
20The bill shall specify the calculations used to determine the
21amount due. If the employer disputes the amount of the bill, it
22may, within 30 days after receipt of the bill, apply to the
23System in writing for a recalculation. The application must
24specify in detail the grounds of the dispute and, if the
25employer asserts that the calculation is subject to subsection
26(h) or (i) of this Section or that subsection (g-1) applies,

 

 

SB2145- 11 -LRB101 08466 RPS 53542 b

1must include an affidavit setting forth and attesting to all
2facts within the employer's knowledge that are pertinent to the
3applicability of that subsection. 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
7(g) may be paid in the form of a lump sum within 90 days after
8receipt of the bill. If the employer contributions are not paid
9within 90 days after receipt of the bill, then interest will be
10charged at a rate equal to the System's annual actuarially
11assumed rate of return on investment compounded annually from
12the 91st day after receipt of the bill. Payments must be
13concluded within 3 years after the employer's receipt of the
14bill.
15    When assessing payment for any amount due under this
16subsection (g), the System shall include earnings, to the
17extent not established by a participant under Section 15-113.11
18or 15-113.12, that would have been paid to the participant had
19the participant not taken (i) periods of voluntary or
20involuntary furlough occurring on or after July 1, 2015 and on
21or before June 30, 2017 or (ii) periods of voluntary pay
22reduction in lieu of furlough occurring on or after July 1,
232015 and on or before June 30, 2017. Determining earnings that
24would have been paid to a participant had the participant not
25taken periods of voluntary or involuntary furlough or periods
26of voluntary pay reduction shall be the responsibility of the

 

 

SB2145- 12 -LRB101 08466 RPS 53542 b

1employer, and shall be reported in a manner prescribed by the
2System.
3    This subsection (g) does not apply to (1) Tier 2 hybrid
4plan members and (2) Tier 2 defined benefit members who first
5participate under this Article on or after the implementation
6date of the Optional Hybrid Plan.
7    (g-1) For academic years beginning on or after July 1, 2018
8and for earnings paid to a participant under a contract or
9collective bargaining agreement entered into, amended, or
10renewed on or after June 4, 2018 (the effective date of Public
11Act 100-587) this amendatory Act of the 100th General Assembly,
12if the amount of a participant's earnings for any academic year
13used to determine the final rate of earnings, determined on a
14full-time equivalent basis, exceeds the amount of his or her
15earnings with the same employer for the previous academic year,
16determined on a full-time equivalent basis, by more than 3%,
17then the participant's employer shall pay to the System, in
18addition to all other payments required under this Section and
19in accordance with guidelines established by the System, the
20present value of the increase in benefits resulting from the
21portion of the increase in earnings that is in excess of 3%.
22This present value shall be computed by the System on the basis
23of the actuarial assumptions and tables used in the most recent
24actuarial valuation of the System that is available at the time
25of the computation. The System may require the employer to
26provide any pertinent information or documentation.

 

 

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

 

 

SB2145- 14 -LRB101 08466 RPS 53542 b

1participate under this Article on or after the implementation
2date of the Optional Hybrid Plan.
3    (h) This subsection (h) applies only to payments made or
4salary increases given on or after June 1, 2005 but before July
51, 2011. The changes made by Public Act 94-1057 shall not
6require the System to refund any payments received before July
731, 2006 (the effective date of Public Act 94-1057).
8    When assessing payment for any amount due under subsection
9(g), the System shall exclude earnings increases paid to
10participants under contracts or collective bargaining
11agreements entered into, amended, or renewed before June 1,
122005.
13    When assessing payment for any amount due under subsection
14(g), the System shall exclude earnings increases paid to a
15participant at a time when the participant is 10 or more years
16from retirement eligibility under Section 15-135.
17    When assessing payment for any amount due under subsection
18(g), the System shall exclude earnings increases resulting from
19overload work, including a contract for summer teaching, or
20overtime when the employer has certified to the System, and the
21System has approved the certification, that: (i) in the case of
22overloads (A) the overload work is for the sole purpose of
23academic instruction in excess of the standard number of
24instruction hours for a full-time employee occurring during the
25academic year that the overload is paid and (B) the earnings
26increases are equal to or less than the rate of pay for

 

 

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1academic instruction computed using the participant's current
2salary rate and work schedule; and (ii) in the case of
3overtime, the overtime was necessary for the educational
4mission.
5    When assessing payment for any amount due under subsection
6(g), the System shall exclude any earnings increase resulting
7from (i) a promotion for which the employee moves from one
8classification to a higher classification under the State
9Universities Civil Service System, (ii) a promotion in academic
10rank for a tenured or tenure-track faculty position, or (iii) a
11promotion that the Illinois Community College Board has
12recommended in accordance with subsection (k) of this Section.
13These earnings increases shall be excluded only if the
14promotion is to a position that has existed and been filled by
15a member for no less than one complete academic year and the
16earnings increase as a result of the promotion is an increase
17that results in an amount no greater than the average salary
18paid for other similar positions.
19    (h-1) This subsection (h-1) applies only to payments made
20or salary increases given in academic years beginning on or
21after July 1, 2018. The changes made by this amendatory Act of
22the 101st General Assembly shall not require the System to
23refund any payments received before the effective date of this
24amendatory Act of the 101st General Assembly.
25    When assessing payment for any amount due under subsection
26(g-1), the System shall exclude earnings increases paid to a

 

 

SB2145- 16 -LRB101 08466 RPS 53542 b

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

 

 

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

 

 

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1        (4) The increase in the required State contribution
2    resulting from the changes made to this Section by Public
3    Act 94-1057.
4    (j-5) For State fiscal years beginning on or after July 1,
52017, if the amount of a participant's earnings for any State
6fiscal year exceeds the amount of the salary set by law for the
7Governor that is in effect on July 1 of that fiscal year, the
8participant's employer shall pay to the System, in addition to
9all other payments required under this Section and in
10accordance with guidelines established by the System, an amount
11determined by the System to be equal to the employer normal
12cost, as established by the System and expressed as a total
13percentage of payroll, multiplied by the amount of earnings in
14excess of the amount of the salary set by law for the Governor.
15This amount shall be computed by the System on the basis of the
16actuarial assumptions and tables used in the most recent
17actuarial valuation of the System that is available at the time
18of the computation. The System may require the employer to
19provide any pertinent information or documentation.
20    Whenever it determines that a payment is or may be required
21under this subsection, the System shall calculate the amount of
22the payment and bill the employer for that amount. The bill
23shall specify the calculation used to determine the amount due.
24If the employer disputes the amount of the bill, it may, within
2530 days after receipt of the bill, apply to the System in
26writing for a recalculation. The application must specify in

 

 

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1detail the grounds of the dispute. Upon receiving a timely
2application for recalculation, the System shall review the
3application and, if appropriate, recalculate the amount due.
4    The employer contributions required under this subsection
5may be paid in the form of a lump sum within 90 days after
6issuance of the bill. If the employer contributions are not
7paid within 90 days after issuance of the bill, then interest
8will be charged at a rate equal to the System's annual
9actuarially assumed rate of return on investment compounded
10annually from the 91st day after issuance of the bill. All
11payments must be received within 3 years after issuance of the
12bill. If the employer fails to make complete payment, including
13applicable interest, within 3 years, then the System may, after
14giving notice to the employer, certify the delinquent amount to
15the State Comptroller, and the Comptroller shall thereupon
16deduct the certified delinquent amount from State funds payable
17to the employer and pay them instead to the System.
18    This subsection (j-5) does not apply to a participant's
19earnings to the extent an employer pays the employer normal
20cost of such earnings.
21    The changes made to this subsection (j-5) by Public Act
22100-624 this amendatory Act of the 100th General Assembly are
23intended to apply retroactively to July 6, 2017 (the effective
24date of Public Act 100-23).
25    (k) The Illinois Community College Board shall adopt rules
26for recommending lists of promotional positions submitted to

 

 

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

 

 

SB2145- 21 -LRB101 08466 RPS 53542 b

1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17;
4100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
 
5    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
6    Sec. 16-158. Contributions by State and other employing
7units.
8    (a) The State shall make contributions to the System by
9means of appropriations from the Common School Fund and other
10State funds of amounts which, together with other employer
11contributions, employee contributions, investment income, and
12other income, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15    The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(b-3).
20    (a-1) Annually, on or before November 15 until November 15,
212011, the Board shall certify to the Governor the amount of the
22required State contribution for the coming fiscal year. The
23certification under this subsection (a-1) shall include a copy
24of the actuarial recommendations upon which it is based and
25shall specifically identify the System's projected State

 

 

SB2145- 22 -LRB101 08466 RPS 53542 b

1normal cost for that fiscal year.
2    On or before May 1, 2004, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2005, taking
5into account the amounts appropriated to and received by the
6System under subsection (d) of Section 7.2 of the General
7Obligation Bond Act.
8    On or before July 1, 2005, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2006, taking
11into account the changes in required State contributions made
12by Public Act 94-4.
13    On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2011, applying
16the changes made by Public Act 96-889 to the System's assets
17and liabilities as of June 30, 2009 as though Public Act 96-889
18was approved on that date.
19    (a-5) On or before November 1 of each year, beginning
20November 1, 2012, the Board shall submit to the State Actuary,
21the Governor, and the General Assembly a proposed certification
22of the amount of the required State contribution to the System
23for the next fiscal year, along with all of the actuarial
24assumptions, calculations, and data upon which that proposed
25certification is based. On or before January 1 of each year,
26beginning January 1, 2013, the State Actuary shall issue a

 

 

SB2145- 23 -LRB101 08466 RPS 53542 b

1preliminary report concerning the proposed certification and
2identifying, if necessary, recommended changes in actuarial
3assumptions that the Board must consider before finalizing its
4certification of the required State contributions. On or before
5January 15, 2013 and each January 15 thereafter, the Board
6shall certify to the Governor and the General Assembly the
7amount of the required State contribution for the next fiscal
8year. The Board's certification must note any deviations from
9the State Actuary's recommended changes, the reason or reasons
10for not following the State Actuary's recommended changes, and
11the fiscal impact of not following the State Actuary's
12recommended changes on the required State contribution.
13    (a-10) By November 1, 2017, the Board shall recalculate and
14recertify to the State Actuary, the Governor, and the General
15Assembly the amount of the State contribution to the System for
16State fiscal year 2018, taking into account the changes in
17required State contributions made by Public Act 100-23. The
18State Actuary shall review the assumptions and valuations
19underlying the Board's revised certification and issue a
20preliminary report concerning the proposed recertification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. The Board's
24final certification must note any deviations from the State
25Actuary's recommended changes, the reason or reasons for not
26following the State Actuary's recommended changes, and the

 

 

SB2145- 24 -LRB101 08466 RPS 53542 b

1fiscal impact of not following the State Actuary's recommended
2changes on the required State contribution.
3    (a-15) On or after June 15, 2019, but no later than June
430, 2019, the Board shall recalculate and recertify to the
5Governor and the General Assembly the amount of the State
6contribution to the System for State fiscal year 2019, taking
7into account the changes in required State contributions made
8by Public Act 100-587 this amendatory Act of the 100th General
9Assembly. The recalculation shall be made using assumptions
10adopted by the Board for the original fiscal year 2019
11certification. The monthly voucher for the 12th month of fiscal
12year 2019 shall be paid by the Comptroller after the
13recertification required pursuant to this subsection is
14submitted to the Governor, Comptroller, and General Assembly.
15The recertification submitted to the General Assembly shall be
16filed with the Clerk of the House of Representatives and the
17Secretary of the Senate in electronic form only, in the manner
18that the Clerk and the Secretary shall direct.
19    (b) Through State fiscal year 1995, the State contributions
20shall be paid to the System in accordance with Section 18-7 of
21the School Code.
22    (b-1) Beginning in State fiscal year 1996, on the 15th day
23of each month, or as soon thereafter as may be practicable, the
24Board shall submit vouchers for payment of State contributions
25to the System, in a total monthly amount of one-twelfth of the
26required annual State contribution certified under subsection

 

 

SB2145- 25 -LRB101 08466 RPS 53542 b

1(a-1). From March 5, 2004 (the effective date of Public Act
293-665) through June 30, 2004, the Board shall not submit
3vouchers for the remainder of fiscal year 2004 in excess of the
4fiscal year 2004 certified contribution amount determined
5under this Section after taking into consideration the transfer
6to the System under subsection (a) of Section 6z-61 of the
7State Finance Act. These vouchers shall be paid by the State
8Comptroller and Treasurer by warrants drawn on the funds
9appropriated to the System for that fiscal year.
10    If in any month the amount remaining unexpended from all
11other appropriations to the System for the applicable fiscal
12year (including the appropriations to the System under Section
138.12 of the State Finance Act and Section 1 of the State
14Pension Funds Continuing Appropriation Act) is less than the
15amount lawfully vouchered under this subsection, the
16difference shall be paid from the Common School Fund under the
17continuing appropriation authority provided in Section 1.1 of
18the State Pension Funds Continuing Appropriation Act.
19    (b-2) Allocations from the Common School Fund apportioned
20to school districts not coming under this System shall not be
21diminished or affected by the provisions of this Article.
22    (b-3) For State fiscal years 2012 through 2045, the minimum
23contribution to the System to be made by the State for each
24fiscal year shall be an amount determined by the System to be
25sufficient to bring the total assets of the System up to 90% of
26the total actuarial liabilities of the System by the end of

 

 

SB2145- 26 -LRB101 08466 RPS 53542 b

1State fiscal year 2045. In making these determinations, the
2required State contribution shall be calculated each year as a
3level percentage of payroll over the years remaining to and
4including fiscal year 2045 and shall be determined under the
5projected unit credit actuarial cost method.
6    For each of State fiscal years 2018, 2019, and 2020, the
7State shall make an additional contribution to the System equal
8to 2% of the total payroll of each employee who is deemed to
9have elected the benefits under Section 1-161 or who has made
10the election under subsection (c) of Section 1-161.
11    A change in an actuarial or investment assumption that
12increases or decreases the required State contribution and
13first applies in State fiscal year 2018 or thereafter shall be
14implemented in equal annual amounts over a 5-year period
15beginning in the State fiscal year in which the actuarial
16change first applies to the required State contribution.
17    A change in an actuarial or investment assumption that
18increases or decreases the required State contribution and
19first applied to the State contribution in fiscal year 2014,
202015, 2016, or 2017 shall be implemented:
21        (i) as already applied in State fiscal years before
22    2018; and
23        (ii) in the portion of the 5-year period beginning in
24    the State fiscal year in which the actuarial change first
25    applied that occurs in State fiscal year 2018 or
26    thereafter, by calculating the change in equal annual

 

 

SB2145- 27 -LRB101 08466 RPS 53542 b

1    amounts over that 5-year period and then implementing it at
2    the resulting annual rate in each of the remaining fiscal
3    years in that 5-year period.
4    For State fiscal years 1996 through 2005, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7so that by State fiscal year 2011, the State is contributing at
8the rate required under this Section; except that in the
9following specified State fiscal years, the State contribution
10to the System shall not be less than the following indicated
11percentages of the applicable employee payroll, even if the
12indicated percentage will produce a State contribution in
13excess of the amount otherwise required under this subsection
14and subsection (a), and notwithstanding any contrary
15certification made under subsection (a-1) before May 27, 1998
16(the effective date of Public Act 90-582): 10.02% in FY 1999;
1710.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
18in FY 2003; and 13.56% in FY 2004.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2006 is
21$534,627,700.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2007 is
24$738,014,500.
25    For each of State fiscal years 2008 through 2009, the State
26contribution to the System, as a percentage of the applicable

 

 

SB2145- 28 -LRB101 08466 RPS 53542 b

1employee payroll, shall be increased in equal annual increments
2from the required State contribution for State fiscal year
32007, so that by State fiscal year 2011, the State is
4contributing at the rate otherwise required under this Section.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2010 is
7$2,089,268,000 and shall be made from the proceeds of bonds
8sold in fiscal year 2010 pursuant to Section 7.2 of the General
9Obligation Bond Act, less (i) the pro rata share of bond sale
10expenses determined by the System's share of total bond
11proceeds, (ii) any amounts received from the Common School Fund
12in fiscal year 2010, and (iii) any reduction in bond proceeds
13due to the issuance of discounted bonds, if applicable.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2011 is
16the amount recertified by the System on or before April 1, 2011
17pursuant to subsection (a-1) of this Section and shall be made
18from the proceeds of bonds sold in fiscal year 2011 pursuant to
19Section 7.2 of the General Obligation Bond Act, less (i) the
20pro rata share of bond sale expenses determined by the System's
21share of total bond proceeds, (ii) any amounts received from
22the Common School Fund in fiscal year 2011, and (iii) any
23reduction in bond proceeds due to the issuance of discounted
24bonds, if applicable. This amount shall include, in addition to
25the amount certified by the System, an amount necessary to meet
26employer contributions required by the State as an employer

 

 

SB2145- 29 -LRB101 08466 RPS 53542 b

1under paragraph (e) of this Section, which may also be used by
2the System for contributions required by paragraph (a) of
3Section 16-127.
4    Beginning in State fiscal year 2046, the minimum State
5contribution for each fiscal year shall be the amount needed to
6maintain the total assets of the System at 90% of the total
7actuarial liabilities of the System.
8    Amounts received by the System pursuant to Section 25 of
9the Budget Stabilization Act or Section 8.12 of the State
10Finance Act in any fiscal year do not reduce and do not
11constitute payment of any portion of the minimum State
12contribution required under this Article in that fiscal year.
13Such amounts shall not reduce, and shall not be included in the
14calculation of, the required State contributions under this
15Article in any future year until the System has reached a
16funding ratio of at least 90%. A reference in this Article to
17the "required State contribution" or any substantially similar
18term does not include or apply to any amounts payable to the
19System under Section 25 of the Budget Stabilization Act.
20    Notwithstanding any other provision of this Section, the
21required State contribution for State fiscal year 2005 and for
22fiscal year 2008 and each fiscal year thereafter, as calculated
23under this Section and certified under subsection (a-1), shall
24not exceed an amount equal to (i) the amount of the required
25State contribution that would have been calculated under this
26Section for that fiscal year if the System had not received any

 

 

SB2145- 30 -LRB101 08466 RPS 53542 b

1payments under subsection (d) of Section 7.2 of the General
2Obligation Bond Act, minus (ii) the portion of the State's
3total debt service payments for that fiscal year on the bonds
4issued in fiscal year 2003 for the purposes of that Section
57.2, as determined and certified by the Comptroller, that is
6the same as the System's portion of the total moneys
7distributed under subsection (d) of Section 7.2 of the General
8Obligation Bond Act. In determining this maximum for State
9fiscal years 2008 through 2010, however, the amount referred to
10in item (i) shall be increased, as a percentage of the
11applicable employee payroll, in equal increments calculated
12from the sum of the required State contribution for State
13fiscal year 2007 plus the applicable portion of the State's
14total debt service payments for fiscal year 2007 on the bonds
15issued in fiscal year 2003 for the purposes of Section 7.2 of
16the General Obligation Bond Act, so that, by State fiscal year
172011, the State is contributing at the rate otherwise required
18under this Section.
19    (b-4) Beginning in fiscal year 2018, each employer under
20this Article shall pay to the System a required contribution
21determined as a percentage of projected payroll and sufficient
22to produce an annual amount equal to:
23        (i) for each of fiscal years 2018, 2019, and 2020, the
24    defined benefit normal cost of the defined benefit plan,
25    less the employee contribution, for each employee of that
26    employer who has elected or who is deemed to have elected

 

 

SB2145- 31 -LRB101 08466 RPS 53542 b

1    the benefits under Section 1-161 or who has made the
2    election under subsection (b) of Section 1-161; for fiscal
3    year 2021 and each fiscal year thereafter, the defined
4    benefit normal cost of the defined benefit plan, less the
5    employee contribution, plus 2%, for each employee of that
6    employer who has elected or who is deemed to have elected
7    the benefits under Section 1-161 or who has made the
8    election under subsection (b) of Section 1-161; plus
9        (ii) the amount required for that fiscal year to
10    amortize any unfunded actuarial accrued liability
11    associated with the present value of liabilities
12    attributable to the employer's account under Section
13    16-158.3, determined as a level percentage of payroll over
14    a 30-year rolling amortization period.
15    In determining contributions required under item (i) of
16this subsection, the System shall determine an aggregate rate
17for all employers, expressed as a percentage of projected
18payroll.
19    In determining the contributions required under item (ii)
20of this subsection, the amount shall be computed by the System
21on the basis of the actuarial assumptions and tables used in
22the most recent actuarial valuation of the System that is
23available at the time of the computation.
24    The contributions required under this subsection (b-4)
25shall be paid by an employer concurrently with that employer's
26payroll payment period. The State, as the actual employer of an

 

 

SB2145- 32 -LRB101 08466 RPS 53542 b

1employee, shall make the required contributions under this
2subsection.
3    (c) Payment of the required State contributions and of all
4pensions, retirement annuities, death benefits, refunds, and
5other benefits granted under or assumed by this System, and all
6expenses in connection with the administration and operation
7thereof, are obligations of the State.
8    If members are paid from special trust or federal funds
9which are administered by the employing unit, whether school
10district or other unit, the employing unit shall pay to the
11System from such funds the full accruing retirement costs based
12upon that service, which, beginning July 1, 2017, shall be at a
13rate, expressed as a percentage of salary, equal to the total
14employer's normal cost, expressed as a percentage of payroll,
15as determined by the System. Employer contributions, based on
16salary paid to members from federal funds, may be forwarded by
17the distributing agency of the State of Illinois to the System
18prior to allocation, in an amount determined in accordance with
19guidelines established by such agency and the System. Any
20contribution for fiscal year 2015 collected as a result of the
21change made by Public Act 98-674 shall be considered a State
22contribution under subsection (b-3) of this Section.
23    (d) Effective July 1, 1986, any employer of a teacher as
24defined in paragraph (8) of Section 16-106 shall pay the
25employer's normal cost of benefits based upon the teacher's
26service, in addition to employee contributions, as determined

 

 

SB2145- 33 -LRB101 08466 RPS 53542 b

1by the System. Such employer contributions shall be forwarded
2monthly in accordance with guidelines established by the
3System.
4    However, with respect to benefits granted under Section
516-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
6of Section 16-106, the employer's contribution shall be 12%
7(rather than 20%) of the member's highest annual salary rate
8for each year of creditable service granted, and the employer
9shall also pay the required employee contribution on behalf of
10the teacher. For the purposes of Sections 16-133.4 and
1116-133.5, a teacher as defined in paragraph (8) of Section
1216-106 who is serving in that capacity while on leave of
13absence from another employer under this Article shall not be
14considered an employee of the employer from which the teacher
15is on leave.
16    (e) Beginning July 1, 1998, every employer of a teacher
17shall pay to the System an employer contribution computed as
18follows:
19        (1) Beginning July 1, 1998 through June 30, 1999, the
20    employer contribution shall be equal to 0.3% of each
21    teacher's salary.
22        (2) Beginning July 1, 1999 and thereafter, the employer
23    contribution shall be equal to 0.58% of each teacher's
24    salary.
25The school district or other employing unit may pay these
26employer contributions out of any source of funding available

 

 

SB2145- 34 -LRB101 08466 RPS 53542 b

1for that purpose and shall forward the contributions to the
2System on the schedule established for the payment of member
3contributions.
4    These employer contributions are intended to offset a
5portion of the cost to the System of the increases in
6retirement benefits resulting from Public Act 90-582.
7    Each employer of teachers is entitled to a credit against
8the contributions required under this subsection (e) with
9respect to salaries paid to teachers for the period January 1,
102002 through June 30, 2003, equal to the amount paid by that
11employer under subsection (a-5) of Section 6.6 of the State
12Employees Group Insurance Act of 1971 with respect to salaries
13paid to teachers for that period.
14    The additional 1% employee contribution required under
15Section 16-152 by Public Act 90-582 is the responsibility of
16the teacher and not the teacher's employer, unless the employer
17agrees, through collective bargaining or otherwise, to make the
18contribution on behalf of the teacher.
19    If an employer is required by a contract in effect on May
201, 1998 between the employer and an employee organization to
21pay, on behalf of all its full-time employees covered by this
22Article, all mandatory employee contributions required under
23this Article, then the employer shall be excused from paying
24the employer contribution required under this subsection (e)
25for the balance of the term of that contract. The employer and
26the employee organization shall jointly certify to the System

 

 

SB2145- 35 -LRB101 08466 RPS 53542 b

1the existence of the contractual requirement, in such form as
2the System may prescribe. This exclusion shall cease upon the
3termination, extension, or renewal of the contract at any time
4after May 1, 1998.
5    (f) For school years beginning on or after June 1, 2005 and
6before July 1, 2018 and for salary paid to a teacher under a
7contract or collective bargaining agreement entered into,
8amended, or renewed before June 4, 2018 (the effective date of
9Public Act 100-587) this amendatory Act of the 100th General
10Assembly, if the amount of a teacher's salary for any school
11year used to determine final average salary exceeds the
12member's annual full-time salary rate with the same employer
13for the previous school year by more than 6%, the teacher's
14employer shall pay to the System, in addition to all other
15payments required under this Section and in accordance with
16guidelines established by the System, the present value of the
17increase in benefits resulting from the portion of the increase
18in salary that is in excess of 6%. This present value shall be
19computed by the System on the basis of the actuarial
20assumptions and tables used in the most recent actuarial
21valuation of the System that is available at the time of the
22computation. If a teacher's salary for the 2005-2006 school
23year is used to determine final average salary under this
24subsection (f), then the changes made to this subsection (f) by
25Public Act 94-1057 shall apply in calculating whether the
26increase in his or her salary is in excess of 6%. For the

 

 

SB2145- 36 -LRB101 08466 RPS 53542 b

1purposes of this Section, change in employment under Section
210-21.12 of the School Code on or after June 1, 2005 shall
3constitute a change in employer. The System may require the
4employer to provide any pertinent information or
5documentation. The changes made to this subsection (f) by
6Public Act 94-1111 apply without regard to whether the teacher
7was in service on or after its effective date.
8    Whenever it determines that a payment is or may be required
9under this subsection, the System shall calculate the amount of
10the payment and bill the employer for that amount. The bill
11shall specify the calculations used to determine the amount
12due. If the employer disputes the amount of the bill, it may,
13within 30 days after receipt of the bill, apply to the System
14in writing for a recalculation. The application must specify in
15detail the grounds of the dispute and, if the employer asserts
16that the calculation is subject to subsection (g) or (h) of
17this Section or that subsection (f-1) of this Section applies,
18must include an affidavit setting forth and attesting to all
19facts within the employer's knowledge that are pertinent to the
20applicability of that subsection. Upon receiving a timely
21application for recalculation, the System shall review the
22application and, if appropriate, recalculate the amount due.
23    The employer contributions required under this subsection
24(f) may be paid in the form of a lump sum within 90 days after
25receipt of the bill. If the employer contributions are not paid
26within 90 days after receipt of the bill, then interest will be

 

 

SB2145- 37 -LRB101 08466 RPS 53542 b

1charged at a rate equal to the System's annual actuarially
2assumed rate of return on investment compounded annually from
3the 91st day after receipt of the bill. Payments must be
4concluded within 3 years after the employer's receipt of the
5bill.
6    (f-1) For school years beginning on or after July 1, 2018
7and for salary paid to a teacher under a contract or collective
8bargaining agreement entered into, amended, or renewed on or
9after June 4, 2018 (the effective date of Public Act 100-587)
10this amendatory Act of the 100th General Assembly, if the
11amount of a teacher's salary for any school year used to
12determine final average salary exceeds the member's annual
13full-time salary rate with the same employer for the previous
14school year by more than 3%, then the teacher's employer shall
15pay to the System, in addition to all other payments required
16under this Section and in accordance with guidelines
17established by the System, the present value of the increase in
18benefits resulting from the portion of the increase in salary
19that is in excess of 3%. This present value shall be computed
20by the System on the basis of the actuarial assumptions and
21tables used in the most recent actuarial valuation of the
22System that is available at the time of the computation. The
23System may require the employer to provide any pertinent
24information or documentation.
25    Whenever it determines that a payment is or may be required
26under this subsection (f-1), the System shall calculate the

 

 

SB2145- 38 -LRB101 08466 RPS 53542 b

1amount of the payment and bill the employer for that amount.
2The bill shall specify the calculations used to determine the
3amount due. If the employer disputes the amount of the bill, it
4shall, within 30 days after receipt of the bill, apply to the
5System in writing for a recalculation. The application must
6specify in detail the grounds of the dispute and, if the
7employer asserts that subsection (f) or (g-1) of this Section
8applies, must include an affidavit setting forth and attesting
9to all facts within the employer's knowledge that are pertinent
10to the applicability of subsection (f) or (g-1). Upon receiving
11a timely application for recalculation, the System shall review
12the application and, if appropriate, recalculate the amount
13due.
14    The employer contributions required under this subsection
15(f-1) may be paid in the form of a lump sum within 90 days after
16receipt of the bill. If the employer contributions are not paid
17within 90 days after receipt of the bill, then interest shall
18be charged at a rate equal to the System's annual actuarially
19assumed rate of return on investment compounded annually from
20the 91st day after receipt of the bill. Payments must be
21concluded within 3 years after the employer's receipt of the
22bill.
23    (g) This subsection (g) applies only to payments made or
24salary increases given on or after June 1, 2005 but before July
251, 2011. The changes made by Public Act 94-1057 shall not
26require the System to refund any payments received before July

 

 

SB2145- 39 -LRB101 08466 RPS 53542 b

131, 2006 (the effective date of Public Act 94-1057).
2    When assessing payment for any amount due under subsection
3(f), the System shall exclude salary increases paid to teachers
4under contracts or collective bargaining agreements entered
5into, amended, or renewed before June 1, 2005.
6    When assessing payment for any amount due under subsection
7(f), the System shall exclude salary increases paid to a
8teacher at a time when the teacher is 10 or more years from
9retirement eligibility under Section 16-132 or 16-133.2.
10    When assessing payment for any amount due under subsection
11(f), the System shall exclude salary increases resulting from
12overload work, including summer school, when the school
13district has certified to the System, and the System has
14approved the certification, that (i) the overload work is for
15the sole purpose of classroom instruction in excess of the
16standard number of classes for a full-time teacher in a school
17district during a school year and (ii) the salary increases are
18equal to or less than the rate of pay for classroom instruction
19computed on the teacher's current salary and work schedule.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude a salary increase resulting from
22a promotion (i) for which the employee is required to hold a
23certificate or supervisory endorsement issued by the State
24Teacher Certification Board that is a different certification
25or supervisory endorsement than is required for the teacher's
26previous position and (ii) to a position that has existed and

 

 

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1been filled by a member for no less than one complete academic
2year and the salary increase from the promotion is an increase
3that results in an amount no greater than the lesser of the
4average salary paid for other similar positions in the district
5requiring the same certification or the amount stipulated in
6the collective bargaining agreement for a similar position
7requiring the same certification.
8    When assessing payment for any amount due under subsection
9(f), the System shall exclude any payment to the teacher from
10the State of Illinois or the State Board of Education over
11which the employer does not have discretion, notwithstanding
12that the payment is included in the computation of final
13average salary.
14    (g-1) This subsection (g-1) applies only to payments made
15or salary increases given in school years beginning on or after
16July 1, 2018. The changes made by this amendatory Act of the
17101st General Assembly shall not require the System to refund
18any payments received before the effective date of this
19amendatory Act of the 101st General Assembly.
20    When assessing payment for any amount due under subsection
21(f-1), the System shall exclude salary increases paid to a
22teacher at a time when the teacher is 10 or more years from
23retirement eligibility under Section 16-132 or 16-133.2.
24    When assessing payment for any amount due under subsection
25(f-1), the System shall exclude salary increases resulting from
26overload work, including summer school, when the school

 

 

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1district has certified to the System, and the System has
2approved the certification, that (i) the overload work is for
3the sole purpose of classroom instruction in excess of the
4standard number of classes for a full-time teacher in a school
5district during a school year and (ii) the salary increases are
6equal to or less than the rate of pay for classroom instruction
7computed on the teacher's current salary and work schedule.
8    When assessing payment for any amount due under subsection
9(f-1), the System shall exclude a salary increase resulting
10from a promotion (i) for which the employee is required to hold
11a certificate or supervisory endorsement issued by the State
12Teacher Certification Board that is a different certification
13or supervisory endorsement than is required for the teacher's
14previous position and (ii) to a position that has existed and
15been filled by a member for no less than one complete academic
16year and the salary increase from the promotion is an increase
17that results in an amount no greater than the lesser of the
18average salary paid for other similar positions in the district
19requiring the same certification or the amount stipulated in
20the collective bargaining agreement for a similar position
21requiring the same certification.
22    When assessing payment for any amount due under subsection
23(f-1), the System shall exclude any payment to the teacher from
24the State of Illinois or the State Board of Education over
25which the employer does not have discretion, notwithstanding
26that the payment is included in the computation of final

 

 

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1average salary.
2    (h) When assessing payment for any amount due under
3subsection (f), the System shall exclude any salary increase
4described in subsection (g) of this Section given on or after
5July 1, 2011 but before July 1, 2014 under a contract or
6collective bargaining agreement entered into, amended, or
7renewed on or after June 1, 2005 but before July 1, 2011.
8Notwithstanding any other provision of this Section, any
9payments made or salary increases given after June 30, 2014
10shall be used in assessing payment for any amount due under
11subsection (f) of this Section.
12    (i) The System shall prepare a report and file copies of
13the report with the Governor and the General Assembly by
14January 1, 2007 that contains all of the following information:
15        (1) The number of recalculations required by the
16    changes made to this Section by Public Act 94-1057 for each
17    employer.
18        (2) The dollar amount by which each employer's
19    contribution to the System was changed due to
20    recalculations required by Public Act 94-1057.
21        (3) The total amount the System received from each
22    employer as a result of the changes made to this Section by
23    Public Act 94-4.
24        (4) The increase in the required State contribution
25    resulting from the changes made to this Section by Public
26    Act 94-1057.

 

 

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1    (i-5) For school years beginning on or after July 1, 2017,
2if the amount of a participant's salary for any school year
3exceeds the amount of the salary set for the Governor, the
4participant's employer shall pay to the System, in addition to
5all other payments required under this Section and in
6accordance with guidelines established by the System, an amount
7determined by the System to be equal to the employer normal
8cost, as established by the System and expressed as a total
9percentage of payroll, multiplied by the amount of salary in
10excess of the amount of the salary set for the Governor. This
11amount shall be computed by the System on the basis of the
12actuarial assumptions and tables used in the most recent
13actuarial valuation of the System that is available at the time
14of the computation. The System may require the employer to
15provide any pertinent information or documentation.
16    Whenever it determines that a payment is or may be required
17under this subsection, the System shall calculate the amount of
18the payment and bill the employer for that amount. The bill
19shall specify the calculations used to determine the amount
20due. If the employer disputes the amount of the bill, it may,
21within 30 days after receipt of the bill, apply to the System
22in writing for a recalculation. The application must specify in
23detail the grounds of the dispute. Upon receiving a timely
24application for recalculation, the System shall review the
25application and, if appropriate, recalculate the amount due.
26    The employer contributions required under this subsection

 

 

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1may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9    (j) For purposes of determining the required State
10contribution to the System, the value of the System's assets
11shall be equal to the actuarial value of the System's assets,
12which shall be calculated as follows:
13    As of June 30, 2008, the actuarial value of the System's
14assets shall be equal to the market value of the assets as of
15that date. In determining the actuarial value of the System's
16assets for fiscal years after June 30, 2008, any actuarial
17gains or losses from investment return incurred in a fiscal
18year shall be recognized in equal annual amounts over the
195-year period following that fiscal year.
20    (k) For purposes of determining the required State
21contribution to the system for a particular year, the actuarial
22value of assets shall be assumed to earn a rate of return equal
23to the system's actuarially assumed rate of return.
24(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
25100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
268-14-18; revised 10-4-18.)
 

 

 

SB2145- 45 -LRB101 08466 RPS 53542 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.