093_HB1245

 
                                     LRB093 06622 EFG 06754 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing 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  the  State  and  other
 8    employing units.
 9        (a)  The State shall make contributions to the System  by
10    means of appropriations from the Common School Fund and other
11    State  funds  of  amounts which, together with other employer
12    contributions, employee contributions, investment income, and
13    other  income,  will  be  sufficient  to  meet  the  cost  of
14    maintaining and administering the  System  on  a  90%  funded
15    basis in accordance with actuarial recommendations.
16        The   Board   shall   determine   the   amount  of  State
17    contributions required for each fiscal year on the  basis  of
18    the  actuarial  tables  and  other assumptions adopted by the
19    Board and the  recommendations  of  the  actuary,  using  the
20    formula in subsection (b-3).
21        (a-1)  Annually,  on  or  before  November  15, the board
22    shall certify to the Governor  the  amount  of  the  required
23    State   contribution   for   the  coming  fiscal  year.   The
24    certification  shall  include  a  copy   of   the   actuarial
25    recommendations upon which it is based.
26        (b)  Through   State   fiscal   year   1995,   the  State
27    contributions shall be paid to the System in accordance  with
28    Section 18-7 of the School Code.
29        (b-1)  Beginning  in  State fiscal year 1996, on the 15th
30    day  of  each  month,  or  as  soon  thereafter  as  may   be
31    practicable,  the  Board shall submit vouchers for payment of
 
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 1    State contributions to the System, in a total monthly  amount
 2    of  one-twelfth  of  the  required  annual State contribution
 3    certified under subsection (a-1).  These  vouchers  shall  be
 4    paid by the State Comptroller and Treasurer by warrants drawn
 5    on the funds appropriated to the System for that fiscal year.
 6        If  in any month the amount remaining unexpended from all
 7    other appropriations to the System for the applicable  fiscal
 8    year  (including  the  appropriations  to  the  System  under
 9    Section  8.12  of  the State Finance Act and Section 1 of the
10    State Pension Funds Continuing  Appropriation  Act)  is  less
11    than the amount lawfully vouchered under this subsection, the
12    difference  shall  be  paid from the Common School Fund under
13    the continuing appropriation authority  provided  in  Section
14    1.1 of the State Pension Funds Continuing Appropriation Act.
15        (b-2)  Allocations    from   the   Common   School   Fund
16    apportioned to school districts not coming under this  System
17    shall not be diminished or affected by the provisions of this
18    Article.
19        (b-3)  For  State  fiscal  years  2011  through 2045, the
20    minimum contribution to the System to be made  by  the  State
21    for  each  fiscal  year  shall be an amount determined by the
22    System to be sufficient to bring  the  total  assets  of  the
23    System  up  to  90% of the total actuarial liabilities of the
24    System by the end of State fiscal year 2045.  In making these
25    determinations, the  required  State  contribution  shall  be
26    calculated  each  year  as a level percentage of payroll over
27    the years remaining to and including  fiscal  year  2045  and
28    shall be determined under the projected unit credit actuarial
29    cost method.
30        For  State  fiscal  years  1996  through  2010, the State
31    contribution to the System, as a percentage of the applicable
32    employee  payroll,  shall  be  increased  in   equal   annual
33    increments  so  that  by State fiscal year 2011, the State is
34    contributing at the rate required under this Section;  except
 
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 1    that in the following specified State fiscal years, the State
 2    contribution  to  the  System  shall  not  be  less  than the
 3    following indicated percentages of  the  applicable  employee
 4    payroll,  even  if  the  indicated  percentage will produce a
 5    State contribution in excess of the amount otherwise required
 6    under this subsection and subsection (a), and notwithstanding
 7    any contrary certification made under subsection (a-1) before
 8    the effective date of this amendatory Act of 1998:  10.02% in
 9    FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16%  in  FY
10    2002;  12.86%  in  FY  2003;  13.56% in FY 2004; 14.25% in FY
11    2005; 14.95% in FY 2006; 15.65% in  FY  2007;  16.34%  in  FY
12    2008; 17.04% in FY 2009; and 17.74% in FY 2010.
13        Beginning  in  State  fiscal year 2046, the minimum State
14    contribution for each fiscal year shall be the amount  needed
15    to  maintain  the  total  assets  of the System at 90% of the
16    total actuarial liabilities of the System.
17        (c)  Payment of the required State contributions  and  of
18    all  pensions, retirement annuities, death benefits, refunds,
19    and other benefits granted under or assumed by  this  System,
20    and  all  expenses  in connection with the administration and
21    operation thereof, are obligations of the State.
22        If members are paid from special trust or  federal  funds
23    which  are administered by the employing unit, whether school
24    district or other unit, the employing unit shall pay  to  the
25    System  from  such  funds  the full accruing retirement costs
26    based  upon  that  service,  as  determined  by  the  System.
27    Employer contributions, based on salary paid to members  from
28    federal funds, may be forwarded by the distributing agency of
29    the  State  of Illinois to the System prior to allocation, in
30    an  amount   determined   in   accordance   with   guidelines
31    established by such agency and the System.
32        (d)  Effective July 1, 1986, any employer of a teacher as
33    defined  in  paragraph  (8)  of  Section 16-106 shall pay the
34    employer's normal cost of benefits based upon  the  teacher's
 
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 1    service, in addition to employee contributions, as determined
 2    by   the   System.   Such  employer  contributions  shall  be
 3    forwarded monthly in accordance with  guidelines  established
 4    by the System.
 5        However,  with  respect to benefits granted under Section
 6    16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
 7    of Section 16-106, the employer's contribution shall  be  12%
 8    (rather  than 20%) of the member's highest annual salary rate
 9    for each year of creditable service granted, and the employer
10    shall also pay the required employee contribution  on  behalf
11    of  the  teacher.   For the purposes of Sections 16-133.4 and
12    16-133.5, a teacher as defined in paragraph  (8)  of  Section
13    16-106  who  is  serving  in  that capacity while on leave of
14    absence from another employer under this Article shall not be
15    considered an employee of the employer from which the teacher
16    is on leave.
17        (e)  Beginning July 1, 1998, every employer of a  teacher
18    shall  pay to the System an employer contribution computed as
19    follows:
20             (1)  Beginning July 1, 1998 through June  30,  1999,
21        the  employer contribution shall be equal to 0.3% of each
22        teacher's salary.
23             (2)  Beginning July  1,  1999  and  thereafter,  the
24        employer  contribution  shall  be  equal to 0.58% of each
25        teacher's salary.
26    The school district or other employing  unit  may  pay  these
27    employer contributions out of any source of funding available
28    for  that  purpose and shall forward the contributions to the
29    System on the schedule established for the payment of  member
30    contributions.
31        These  employer  contributions  are  intended to offset a
32    portion of the  cost  to  the  System  of  the  increases  in
33    retirement  benefits  resulting  from  this amendatory Act of
34    1998.
 
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 1        Each employer of teachers is entitled to a credit against
 2    the contributions required under  this  subsection  (e)  with
 3    respect  to  salaries paid to teachers for the period January
 4    1, 2002 through June 30, 2003, equal to the  amount  paid  by
 5    that  employer  under  subsection (a-5) of Section 6.6 of the
 6    State Employees Group Insurance Act of 1971 with  respect  to
 7    salaries paid to teachers for that period.
 8        The  additional  1%  employee contribution required under
 9    Section  16-152  by  this  amendatory  Act  of  1998  is  the
10    responsibility of the teacher and not the teacher's employer,
11    unless the employer agrees, through collective bargaining  or
12    otherwise, to make the contribution on behalf of the teacher.
13        If an employer is required by a contract in effect on May
14    1,  1998 between the employer and an employee organization to
15    pay, on behalf of all its full-time employees covered by this
16    Article, all mandatory employee contributions required  under
17    this  Article, then the employer shall be excused from paying
18    the employer contribution required under this subsection  (e)
19    for  the  balance of the term of that contract.  The employer
20    and the employee organization shall jointly  certify  to  the
21    System  the existence of the contractual requirement, in such
22    form as the System may prescribe.  This exclusion shall cease
23    upon the termination, extension, or renewal of  the  contract
24    at any time after May 1, 1998.
25    (Source: P.A. 92-505, eff. 12-20-01.)