103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2627

 

Introduced 10/25/2023, by Sen. Rachel Ventura

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-158  from Ch. 108 1/2, par. 16-158
105 ILCS 5/24-8  from Ch. 122, par. 24-8

    Amends the Downstate Teachers Article of Illinois Pension Code. Specifies that the provision that requires an employer to make an additional contribution to the System for certain salary increases greater than 6% excludes salary increases necessary to bring a school board in compliance with the changes to the minimum salary provisions of the School Code under the amendatory Act. Amends the Employment of Teachers Article of the School Code. In provisions concerning the minimum salary, provides that the minimum salary shall be $50,000 for the 2024-2025 school year, $55,000 for the 2025-2026 school year, and $60,000 for the 2026-2027 school year. Provides that the Commission on Government Forecasting and Accountability shall certify and publish the minimum salary rate to be used for the 2027-2028 school year (rather than for the 2024-2025 school year) no later than September 30, 2026 (rather than September 30, 2023); makes conforming changes.


LRB103 34052 RJT 63869 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

SB2627LRB103 34052 RJT 63869 b

1    AN ACT concerning education.
 
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
5changing Section 16-158 as follows:
 
6    (40 ILCS 5/16-158)  (from Ch. 108 1/2, par. 16-158)
7    Sec. 16-158. Contributions by State and other employing
8units.
9    (a) The State shall make contributions to the System by
10means of appropriations from the Common School Fund and other
11State funds of amounts which, together with other employer
12contributions, employee contributions, investment income, and
13other income, will be sufficient to meet the cost of
14maintaining and administering the System on a 90% funded basis
15in accordance with actuarial recommendations.
16    The Board shall determine the amount of State
17contributions required for each fiscal year on the basis of
18the actuarial tables and other assumptions adopted by the
19Board and the recommendations of the actuary, using the
20formula in subsection (b-3).
21    (a-1) Annually, on or before November 15 until November
2215, 2011, the Board shall certify to the Governor the amount of
23the required State contribution for the coming fiscal year.

 

 

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1The certification under this subsection (a-1) shall include a
2copy of the actuarial recommendations upon which it is based
3and shall specifically identify the System's projected State
4normal cost for that fiscal year.
5    On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11    On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by Public Act 94-4.
16    On or before April 1, 2011, the Board shall recalculate
17and recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2011,
19applying the changes made by Public Act 96-889 to the System's
20assets and liabilities as of June 30, 2009 as though Public Act
2196-889 was approved on that date.
22    (a-5) On or before November 1 of each year, beginning
23November 1, 2012, the Board shall submit to the State Actuary,
24the Governor, and the General Assembly a proposed
25certification of the amount of the required State contribution
26to the System for the next fiscal year, along with all of the

 

 

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1actuarial assumptions, calculations, and data upon which that
2proposed certification is based. On or before January 1 of
3each year, beginning January 1, 2013, the State Actuary shall
4issue a preliminary report concerning the proposed
5certification and identifying, if necessary, recommended
6changes in actuarial assumptions that the Board must consider
7before finalizing its certification of the required State
8contributions. On or before January 15, 2013 and each January
915 thereafter, the Board shall certify to the Governor and the
10General Assembly the amount of the required State contribution
11for the next fiscal year. The Board's certification must note
12any deviations from the State Actuary's recommended changes,
13the reason or reasons for not following the State Actuary's
14recommended changes, and the fiscal impact of not following
15the State Actuary's recommended changes on the required State
16contribution.
17    (a-10) By November 1, 2017, the Board shall recalculate
18and recertify to the State Actuary, the Governor, and the
19General Assembly the amount of the State contribution to the
20System for State fiscal year 2018, taking into account the
21changes in required State contributions made by Public Act
22100-23. The State Actuary shall review the assumptions and
23valuations underlying the Board's revised certification and
24issue a preliminary report concerning the proposed
25recertification and identifying, if necessary, recommended
26changes in actuarial assumptions that the Board must consider

 

 

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1before finalizing its certification of the required State
2contributions. The Board's final certification must note any
3deviations from the State Actuary's recommended changes, the
4reason or reasons for not following the State Actuary's
5recommended changes, and the fiscal impact of not following
6the State Actuary's recommended changes on the required State
7contribution.
8    (a-15) On or after June 15, 2019, but no later than June
930, 2019, the Board shall recalculate and recertify to the
10Governor and the General Assembly the amount of the State
11contribution to the System for State fiscal year 2019, taking
12into account the changes in required State contributions made
13by Public Act 100-587. The recalculation shall be made using
14assumptions adopted by the Board for the original fiscal year
152019 certification. The monthly voucher for the 12th month of
16fiscal year 2019 shall be paid by the Comptroller after the
17recertification required pursuant to this subsection is
18submitted to the Governor, Comptroller, and General Assembly.
19The recertification submitted to the General Assembly shall be
20filed with the Clerk of the House of Representatives and the
21Secretary of the Senate in electronic form only, in the manner
22that the Clerk and the Secretary shall direct.
23    (b) Through State fiscal year 1995, the State
24contributions shall be paid to the System in accordance with
25Section 18-7 of the School Code.
26    (b-1) Beginning in State fiscal year 1996, on the 15th day

 

 

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1of each month, or as soon thereafter as may be practicable, the
2Board shall submit vouchers for payment of State contributions
3to the System, in a total monthly amount of one-twelfth of the
4required annual State contribution certified under subsection
5(a-1). From March 5, 2004 (the effective date of Public Act
693-665) through June 30, 2004, the Board shall not submit
7vouchers for the remainder of fiscal year 2004 in excess of the
8fiscal year 2004 certified contribution amount determined
9under this Section after taking into consideration the
10transfer to the System under subsection (a) of Section 6z-61
11of the State Finance Act. These vouchers shall be paid by the
12State Comptroller and Treasurer by warrants drawn on the funds
13appropriated to the System for that fiscal year.
14    If in any month the amount remaining unexpended from all
15other appropriations to the System for the applicable fiscal
16year (including the appropriations to the System under Section
178.12 of the State Finance Act and Section 1 of the State
18Pension Funds Continuing Appropriation Act) is less than the
19amount lawfully vouchered under this subsection, the
20difference shall be paid from the Common School Fund under the
21continuing appropriation authority provided in Section 1.1 of
22the State Pension Funds Continuing Appropriation Act.
23    (b-2) Allocations from the Common School Fund apportioned
24to school districts not coming under this System shall not be
25diminished or affected by the provisions of this Article.
26    (b-3) For State fiscal years 2012 through 2045, the

 

 

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1minimum contribution to the System to be made by the State for
2each fiscal year shall be an amount determined by the System to
3be sufficient to bring the total assets of the System up to 90%
4of the total actuarial liabilities of the System by the end of
5State fiscal year 2045. In making these determinations, the
6required State contribution shall be calculated each year as a
7level percentage of payroll over the years remaining to and
8including fiscal year 2045 and shall be determined under the
9projected unit credit actuarial cost method.
10    For each of State fiscal years 2018, 2019, and 2020, the
11State shall make an additional contribution to the System
12equal to 2% of the total payroll of each employee who is deemed
13to have elected the benefits under Section 1-161 or who has
14made the election under subsection (c) of Section 1-161.
15    A change in an actuarial or investment assumption that
16increases or decreases the required State contribution and
17first applies in State fiscal year 2018 or thereafter shall be
18implemented in equal annual amounts over a 5-year period
19beginning in the State fiscal year in which the actuarial
20change first applies to the required State contribution.
21    A change in an actuarial or investment assumption that
22increases or decreases the required State contribution and
23first applied to the State contribution in fiscal year 2014,
242015, 2016, or 2017 shall be implemented:
25        (i) as already applied in State fiscal years before
26    2018; and

 

 

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1        (ii) in the portion of the 5-year period beginning in
2    the State fiscal year in which the actuarial change first
3    applied that occurs in State fiscal year 2018 or
4    thereafter, by calculating the change in equal annual
5    amounts over that 5-year period and then implementing it
6    at the resulting annual rate in each of the remaining
7    fiscal years in that 5-year period.
8    For State fiscal years 1996 through 2005, the State
9contribution to the System, as a percentage of the applicable
10employee payroll, shall be increased in equal annual
11increments so that by State fiscal year 2011, the State is
12contributing at the rate required under this Section; except
13that in the following specified State fiscal years, the State
14contribution to the System shall not be less than the
15following indicated percentages of the applicable employee
16payroll, even if the indicated percentage will produce a State
17contribution in excess of the amount otherwise required under
18this subsection and subsection (a), and notwithstanding any
19contrary certification made under subsection (a-1) before May
2027, 1998 (the effective date of Public Act 90-582): 10.02% in
21FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
222002; 12.86% in FY 2003; and 13.56% in FY 2004.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2006
25is $534,627,700.
26    Notwithstanding any other provision of this Article, the

 

 

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1total required State contribution for State fiscal year 2007
2is $738,014,500.
3    For each of State fiscal years 2008 through 2009, the
4State contribution to the System, as a percentage of the
5applicable employee payroll, shall be increased in equal
6annual increments from the required State contribution for
7State fiscal year 2007, so that by State fiscal year 2011, the
8State is contributing at the rate otherwise required under
9this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2010
12is $2,089,268,000 and shall be made from the proceeds of bonds
13sold in fiscal year 2010 pursuant to Section 7.2 of the General
14Obligation Bond Act, less (i) the pro rata share of bond sale
15expenses determined by the System's share of total bond
16proceeds, (ii) any amounts received from the Common School
17Fund in fiscal year 2010, and (iii) any reduction in bond
18proceeds due to the issuance of discounted bonds, if
19applicable.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2011
22is the amount recertified by the System on or before April 1,
232011 pursuant to subsection (a-1) of this Section and shall be
24made from the proceeds of bonds sold in fiscal year 2011
25pursuant to Section 7.2 of the General Obligation Bond Act,
26less (i) the pro rata share of bond sale expenses determined by

 

 

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1the System's share of total bond proceeds, (ii) any amounts
2received from the Common School Fund in fiscal year 2011, and
3(iii) any reduction in bond proceeds due to the issuance of
4discounted bonds, if applicable. This amount shall include, in
5addition to the amount certified by the System, an amount
6necessary to meet employer contributions required by the State
7as an employer under paragraph (e) of this Section, which may
8also be used by the System for contributions required by
9paragraph (a) of Section 16-127.
10    Beginning in State fiscal year 2046, the minimum State
11contribution for each fiscal year shall be the amount needed
12to maintain the total assets of the System at 90% of the total
13actuarial liabilities of the System.
14    Amounts received by the System pursuant to Section 25 of
15the Budget Stabilization Act or Section 8.12 of the State
16Finance Act in any fiscal year do not reduce and do not
17constitute payment of any portion of the minimum State
18contribution required under this Article in that fiscal year.
19Such amounts shall not reduce, and shall not be included in the
20calculation of, the required State contributions under this
21Article in any future year until the System has reached a
22funding ratio of at least 90%. A reference in this Article to
23the "required State contribution" or any substantially similar
24term does not include or apply to any amounts payable to the
25System under Section 25 of the Budget Stabilization Act.
26    Notwithstanding any other provision of this Section, the

 

 

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1required State contribution for State fiscal year 2005 and for
2fiscal year 2008 and each fiscal year thereafter, as
3calculated under this Section and certified under subsection
4(a-1), shall not exceed an amount equal to (i) the amount of
5the required State contribution that would have been
6calculated under this Section for that fiscal year if the
7System had not received any payments under subsection (d) of
8Section 7.2 of the General Obligation Bond Act, minus (ii) the
9portion of the State's total debt service payments for that
10fiscal year on the bonds issued in fiscal year 2003 for the
11purposes of that Section 7.2, as determined and certified by
12the Comptroller, that is the same as the System's portion of
13the total moneys distributed under subsection (d) of Section
147.2 of the General Obligation Bond Act. In determining this
15maximum for State fiscal years 2008 through 2010, however, the
16amount referred to in item (i) shall be increased, as a
17percentage of the applicable employee payroll, in equal
18increments calculated from the sum of the required State
19contribution for State fiscal year 2007 plus the applicable
20portion of the State's total debt service payments for fiscal
21year 2007 on the bonds issued in fiscal year 2003 for the
22purposes of Section 7.2 of the General Obligation Bond Act, so
23that, by State fiscal year 2011, the State is contributing at
24the rate otherwise required under this Section.
25    (b-4) Beginning in fiscal year 2018, each employer under
26this Article shall pay to the System a required contribution

 

 

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1determined as a percentage of projected payroll and sufficient
2to produce an annual amount equal to:
3        (i) for each of fiscal years 2018, 2019, and 2020, the
4    defined benefit normal cost of the defined benefit plan,
5    less the employee contribution, 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; for fiscal
9    year 2021 and each fiscal year thereafter, the defined
10    benefit normal cost of the defined benefit plan, less the
11    employee contribution, plus 2%, for each employee of that
12    employer who has elected or who is deemed to have elected
13    the benefits under Section 1-161 or who has made the
14    election under subsection (b) of Section 1-161; plus
15        (ii) the amount required for that fiscal year to
16    amortize any unfunded actuarial accrued liability
17    associated with the present value of liabilities
18    attributable to the employer's account under Section
19    16-158.3, determined as a level percentage of payroll over
20    a 30-year rolling amortization period.
21    In determining contributions required under item (i) of
22this subsection, the System shall determine an aggregate rate
23for all employers, expressed as a percentage of projected
24payroll.
25    In determining the contributions required under item (ii)
26of this subsection, the amount shall be computed by the System

 

 

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1on the basis of the actuarial assumptions and tables used in
2the most recent actuarial valuation of the System that is
3available at the time of the computation.
4    The contributions required under this subsection (b-4)
5shall be paid by an employer concurrently with that employer's
6payroll payment period. The State, as the actual employer of
7an employee, shall make the required contributions under this
8subsection.
9    (c) Payment of the required State contributions and of all
10pensions, retirement annuities, death benefits, refunds, and
11other benefits granted under or assumed by this System, and
12all expenses in connection with the administration and
13operation thereof, are obligations of the State.
14    If members are paid from special trust or federal funds
15which are administered by the employing unit, whether school
16district or other unit, the employing unit shall pay to the
17System from such funds the full accruing retirement costs
18based upon that service, which, beginning July 1, 2017, shall
19be at a rate, expressed as a percentage of salary, equal to the
20total employer's normal cost, expressed as a percentage of
21payroll, as determined by the System. Employer contributions,
22based on salary paid to members from federal funds, may be
23forwarded by the distributing agency of the State of Illinois
24to the System prior to allocation, in an amount determined in
25accordance with guidelines established by such agency and the
26System. Any contribution for fiscal year 2015 collected as a

 

 

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1result of the change made by Public Act 98-674 shall be
2considered a State contribution under subsection (b-3) of this
3Section.
4    (d) Effective July 1, 1986, any employer of a teacher as
5defined in paragraph (8) of Section 16-106 shall pay the
6employer's normal cost of benefits based upon the teacher's
7service, in addition to employee contributions, as determined
8by the System. Such employer contributions shall be forwarded
9monthly in accordance with guidelines established by the
10System.
11    However, with respect to benefits granted under Section
1216-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
13of Section 16-106, the employer's contribution shall be 12%
14(rather than 20%) of the member's highest annual salary rate
15for each year of creditable service granted, and the employer
16shall also pay the required employee contribution on behalf of
17the teacher. For the purposes of Sections 16-133.4 and
1816-133.5, a teacher as defined in paragraph (8) of Section
1916-106 who is serving in that capacity while on leave of
20absence from another employer under this Article shall not be
21considered an employee of the employer from which the teacher
22is on leave.
23    (e) Beginning July 1, 1998, every employer of a teacher
24shall pay to the System an employer contribution computed as
25follows:
26        (1) Beginning July 1, 1998 through June 30, 1999, the

 

 

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1    employer contribution shall be equal to 0.3% of each
2    teacher's salary.
3        (2) Beginning July 1, 1999 and thereafter, the
4    employer contribution shall be equal to 0.58% of each
5    teacher's salary.
6The school district or other employing unit may pay these
7employer contributions out of any source of funding available
8for that purpose and shall forward the contributions to the
9System on the schedule established for the payment of member
10contributions.
11    These employer contributions are intended to offset a
12portion of the cost to the System of the increases in
13retirement benefits resulting from Public Act 90-582.
14    Each employer of teachers is entitled to a credit against
15the contributions required under this subsection (e) with
16respect to salaries paid to teachers for the period January 1,
172002 through June 30, 2003, equal to the amount paid by that
18employer under subsection (a-5) of Section 6.6 of the State
19Employees Group Insurance Act of 1971 with respect to salaries
20paid to teachers for that period.
21    The additional 1% employee contribution required under
22Section 16-152 by Public Act 90-582 is the responsibility of
23the teacher and not the teacher's employer, unless the
24employer agrees, through collective bargaining or otherwise,
25to make the contribution on behalf of the teacher.
26    If an employer is required by a contract in effect on May

 

 

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11, 1998 between the employer and an employee organization to
2pay, on behalf of all its full-time employees covered by this
3Article, all mandatory employee contributions required under
4this Article, then the employer shall be excused from paying
5the employer contribution required under this subsection (e)
6for the balance of the term of that contract. The employer and
7the employee organization shall jointly certify to the System
8the existence of the contractual requirement, in such form as
9the System may prescribe. This exclusion shall cease upon the
10termination, extension, or renewal of the contract at any time
11after May 1, 1998.
12    (f) If the amount of a teacher's salary for any school year
13used to determine final average salary exceeds the member's
14annual full-time salary rate with the same employer for the
15previous school year by more than 6%, the teacher's employer
16shall pay to the System, in addition to all other payments
17required under this Section and in accordance with guidelines
18established by the System, the present value of the increase
19in benefits resulting from the portion of the increase in
20salary that is in excess of 6%. This present value shall be
21computed by the System on the basis of the actuarial
22assumptions and tables used in the most recent actuarial
23valuation of the System that is available at the time of the
24computation. If a teacher's salary for the 2005-2006 school
25year is used to determine final average salary under this
26subsection (f), then the changes made to this subsection (f)

 

 

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1by Public Act 94-1057 shall apply in calculating whether the
2increase in his or her salary is in excess of 6%. For the
3purposes of this Section, change in employment under Section
410-21.12 of the School Code on or after June 1, 2005 shall
5constitute a change in employer. The System may require the
6employer to provide any pertinent information or
7documentation. The changes made to this subsection (f) by
8Public Act 94-1111 apply without regard to whether the teacher
9was in service on or after its effective date.
10    Whenever it determines that a payment is or may be
11required under this subsection, the System shall calculate the
12amount of the payment and bill the employer for that amount.
13The bill shall specify the calculations used to determine the
14amount due. If the employer disputes the amount of the bill, it
15may, within 30 days after receipt of the bill, apply to the
16System in writing for a recalculation. The application must
17specify in detail the grounds of the dispute and, if the
18employer asserts that the calculation is subject to subsection
19(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
20must include an affidavit setting forth and attesting to all
21facts within the employer's knowledge that are pertinent to
22the applicability of that subsection. Upon receiving a timely
23application for recalculation, the System shall review the
24application and, if appropriate, recalculate the amount due.
25    The employer contributions required under this subsection
26(f) may be paid in the form of a lump sum within 90 days after

 

 

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1receipt of the bill. If the employer contributions are not
2paid within 90 days after receipt of the bill, then interest
3will be charged at a rate equal to the System's annual
4actuarially assumed rate of return on investment compounded
5annually from the 91st day after receipt of the bill. Payments
6must be concluded within 3 years after the employer's receipt
7of the bill.
8    (f-1) (Blank).
9    (g) This subsection (g) applies only to payments made or
10salary increases given on or after June 1, 2005 but before July
111, 2011. The changes made by Public Act 94-1057 shall not
12require the System to refund any payments received before July
1331, 2006 (the effective date of Public Act 94-1057).
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases paid to
16teachers under contracts or collective bargaining agreements
17entered into, amended, or renewed before June 1, 2005.
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases paid to a
20teacher at a time when the teacher is 10 or more years from
21retirement eligibility under Section 16-132 or 16-133.2.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases resulting from
24overload work, including summer school, when the school
25district has certified to the System, and the System has
26approved the certification, that (i) the overload work is for

 

 

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

 

 

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1    (g-5) When assessing payment for any amount due under
2subsection (f), the System shall exclude salary increases
3resulting from overload or stipend work performed in a school
4year subsequent to a school year in which the employer was
5unable to offer or allow to be conducted overload or stipend
6work due to an emergency declaration limiting such activities.
7    (g-10) When assessing payment for any amount due under
8subsection (f), the System shall exclude salary increases
9resulting from increased instructional time that exceeded the
10instructional time required during the 2019-2020 school year.
11    (g-15) When assessing payment for any amount due under
12subsection (f), the System shall exclude salary increases
13resulting from teaching summer school on or after May 1, 2021
14and before September 15, 2022.
15    (g-20) When assessing payment for any amount due under
16subsection (f), the System shall exclude salary increases
17necessary to bring a school board in compliance with Public
18Act 101-443, Public Act 103-515, or this amendatory Act of the
19103rd General Assembly.
20    (h) When assessing payment for any amount due under
21subsection (f), the System shall exclude any salary increase
22described in subsection (g) of this Section given on or after
23July 1, 2011 but before July 1, 2014 under a contract or
24collective bargaining agreement entered into, amended, or
25renewed on or after June 1, 2005 but before July 1, 2011.
26Notwithstanding any other provision of this Section, any

 

 

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1payments made or salary increases given after June 30, 2014
2shall be used in assessing payment for any amount due under
3subsection (f) of this Section.
4    (i) The System shall prepare a report and file copies of
5the report with the Governor and the General Assembly by
6January 1, 2007 that contains all of the following
7information:
8        (1) The number of recalculations required by the
9    changes made to this Section by Public Act 94-1057 for
10    each employer.
11        (2) The dollar amount by which each employer's
12    contribution to the System was changed due to
13    recalculations required by Public Act 94-1057.
14        (3) The total amount the System received from each
15    employer as a result of the changes made to this Section by
16    Public Act 94-4.
17        (4) The increase in the required State contribution
18    resulting from the changes made to this Section by Public
19    Act 94-1057.
20    (i-5) For school years beginning on or after July 1, 2017,
21if the amount of a participant's salary for any school year
22exceeds the amount of the salary set for the Governor, the
23participant's employer shall pay to the System, in addition to
24all other payments required under this Section and in
25accordance with guidelines established by the System, an
26amount determined by the System to be equal to the employer

 

 

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1normal cost, as established by the System and expressed as a
2total percentage of payroll, multiplied by the amount of
3salary in excess of the amount of the salary set for the
4Governor. This amount shall be computed by the System on the
5basis of the actuarial assumptions and tables used in the most
6recent actuarial valuation of the System that is available at
7the time of the computation. The System may require the
8employer to provide any pertinent information or
9documentation.
10    Whenever it determines that a payment is or may be
11required under this subsection, the System shall calculate the
12amount of the payment and bill the employer for that amount.
13The bill shall specify the calculations used to determine the
14amount due. If the employer disputes the amount of the bill, it
15may, within 30 days after receipt of the bill, apply to the
16System in writing for a recalculation. The application must
17specify in detail the grounds of the dispute. Upon receiving a
18timely application for recalculation, the System shall review
19the application and, if appropriate, recalculate the amount
20due.
21    The employer contributions required under this subsection
22may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not
24paid within 90 days after receipt of the bill, then interest
25will be charged at a rate equal to the System's annual
26actuarially assumed rate of return on investment compounded

 

 

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1annually from the 91st day after receipt of the bill. Payments
2must be concluded within 3 years after the employer's receipt
3of the bill.
4    (j) For purposes of determining the required State
5contribution to the System, the value of the System's assets
6shall be equal to the actuarial value of the System's assets,
7which shall be calculated as follows:
8    As of June 30, 2008, the actuarial value of the System's
9assets shall be equal to the market value of the assets as of
10that date. In determining the actuarial value of the System's
11assets for fiscal years after June 30, 2008, any actuarial
12gains or losses from investment return incurred in a fiscal
13year shall be recognized in equal annual amounts over the
145-year period following that fiscal year.
15    (k) For purposes of determining the required State
16contribution to the system for a particular year, the
17actuarial value of assets shall be assumed to earn a rate of
18return equal to the system's actuarially assumed rate of
19return.
20(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21;
21102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff.
228-11-23.)
 
23    Section 10. The School Code is amended by changing Section
2424-8 as follows:
 

 

 

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1    (105 ILCS 5/24-8)  (from Ch. 122, par. 24-8)
2    Sec. 24-8. Minimum salary. In fixing the salaries of
3teachers, school boards shall pay those who serve on a
4full-time basis not less than a rate for the school year that
5is based upon training completed in a recognized institution
6of higher learning, as follows: for the school year beginning
7July 1, 1980 and until the 2020-2021 school year, less than a
8bachelor's degree, $9,000; 120 semester hours or more and a
9bachelor's degree, $10,000; 150 semester hours or more and a
10master's degree, $11,000. In fixing the salaries of teachers,
11a school board shall pay those who serve on a full-time basis a
12rate not less than (i) $32,076 for the 2020-2021 school year,
13(ii) $34,576 for the 2021-2022 school year, (iii) $37,076 for
14the 2022-2023 school year, and (iv) $40,000 for the 2023-2024
15school year, (v) $50,000 for the 2024-2025 school year, (vi)
16$55,000 for the 2025-2026 school year, and (vii) $60,000 for
17the 2026-2027 school year. The minimum salary rate for each
18school year thereafter shall equal the minimum salary rate for
19the previous school year increased by a percentage equal to
20the annualized percentage increase, if any, in the Consumer
21Price Index for All Urban Consumers for all items published by
22the United States Department of Labor for the 12-month period
23ending on June 30 of the school year that ended 12 months prior
24to the school year in which the adjusted salary is to be in
25effect.
26    In accordance with this Section, the Commission on

 

 

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1Government Forecasting and Accountability shall certify and
2publish the minimum salary rate to be used for the 2027-2028
32024-2025 school year no later than September 30, 2026 2023.
4By no later than July 20, 2027 2024 and annually on or before
5each July 20 thereafter, the Commission on Government
6Forecasting and Accountability shall certify and publish the
7minimum salary rate to be used for each school year after the
82027-2028 2024-2025 school year in accordance with this
9Section.
10    Based upon previous public school experience in this State
11or any other state, territory, dependency or possession of the
12United States, or in schools operated by or under the auspices
13of the United States, teachers who serve on a full-time basis
14shall have their salaries increased to at least the following
15amounts above the starting salary for a teacher in such
16district in the same classification: with less than a
17bachelor's degree, $750 after 5 years; with 120 semester hours
18or more and a bachelor's degree, $1,000 after 5 years and
19$1,600 after 8 years; with 150 semester hours or more and a
20master's degree, $1,250 after 5 years, $2,000 after 8 years
21and $2,750 after 13 years.
22    For the purpose of this Section a teacher's salary shall
23include any amount paid by the school district on behalf of the
24teacher, as teacher contributions, to the Teachers' Retirement
25System of the State of Illinois.
26    If a school board establishes a schedule for teachers'

 

 

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1salaries based on education and experience, not inconsistent
2with this Section, all certificated nurses employed by that
3board shall be paid in accordance with the provisions of such
4schedule.
5    For purposes of this Section, a teacher who submits a
6certificate of completion to the school office prior to the
7first day of the school term shall be considered to have the
8degree stated in such certificate.
9(Source: P.A. 103-515, eff. 8-11-23.)