94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5237


 
Introduced 1/24/2006, by Rep. Robert S. Molaro
 
SYNOPSIS AS INTRODUCED:
 		



























40 ILCS 5/2-124
  from Ch. 108 1/2, par. 2-124


40 ILCS 5/14-131  from Ch. 108 1/2, par. 14-131


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


40 ILCS 5/18-131
  from Ch. 108 1/2, par. 18-131


230 ILCS 10/13
  from Ch. 120, par. 2413



230 ILCS 10/23.1 new






30 ILCS 105/5.663 new









    Amends the Illinois Pension Code and the Riverboat Gambling Act. Provides that all of the monies remaining after the local share is distributed that are received by the Board for the issuance of and conduct of gambling under any license issued under the jurisdiction of the Illinois Gaming Board on or after the effective date of this amendatory Act shall be transferred to the Pension Reserve Fund. Provides that the monies in the Pension Reserve Fund shall be paid to the 5 State-funded retirement systems to be used for funding the unfunded liabilities of the retirement systems and that the amount of the annual appropriation to
each of the retirement systems shall constitute a portion of the
total amount available for appropriation for that fiscal year
that is the same as that retirement system's portion of the
total actuarial reserve deficiency of the systems. Provides that these appropriations shall be in addition to, not in lieu of, State contributions required under the Illinois Pension Code. Amends the State Finance Act to create the Pension Reserve Fund as a special fund within the State Treasury. Effective immediately.
















LRB094 18137 AMC 53444 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB5237

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1
    AN ACT concerning pension financing.

 
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 changing 
5
Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as follows:
 



6
    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)


7
    Sec. 2-124. Contributions by State. 

8
    (a) The State shall make contributions to the System by

9
appropriations of amounts which, together with the 
10
contributions of
participants, interest earned on investments, 
11
and other income
will meet the cost of maintaining and 
12
administering the System on a 90%
funded basis in accordance 
13
with actuarial recommendations.

14
    (b) The Board shall determine the amount of State

15
contributions required for each fiscal year on the basis of the

16
actuarial tables and other assumptions adopted by the Board and 
17
the
prescribed rate of interest, using the formula in 
18
subsection (c).

19
    (c) For State fiscal years 2011 through 2045, the minimum 
20
contribution
to the System to be made by the State for each 
21
fiscal year shall be an amount
determined by the System to be 
22
sufficient to bring the total assets of the
System up to 90% of 
23
the total actuarial liabilities of the System by the end of

24
State fiscal year 2045.  In making these determinations, the 
25
required State
contribution shall be calculated each year as a 
26
level percentage of payroll
over the years remaining to and 
27
including fiscal year 2045 and shall be
determined under the 
28
projected unit credit actuarial cost method.

29
    For State fiscal years 1996 through 2005, the State 
30
contribution to
the System, as a percentage of the applicable 
31
employee payroll, shall be
increased in equal annual increments 
32
so that by State fiscal year 2011, the
State is contributing at 
 


 






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1
the rate required under this Section.

2
    Notwithstanding any other provision of this Article, the 
3
total required State
contribution for State fiscal year 2006 is 
4
$4,157,000.

5
    Notwithstanding any other provision of this Article, the 
6
total required State
contribution for State fiscal year 2007 is 
7
$5,220,300.

8
    For each of State fiscal years 2008 through 2010, the State 
9
contribution to
the System, as a percentage of the applicable 
10
employee payroll, shall be
increased in equal annual increments 
11
from the required State contribution for State fiscal year 
12
2007, so that by State fiscal year 2011, the
State is 
13
contributing at the rate otherwise required under this Section.

14
    Beginning in State fiscal year 2046, the minimum State 
15
contribution for
each fiscal year shall be the amount needed to 
16
maintain the total assets of
the System at 90% of the total 
17
actuarial liabilities of the System.

18
    Amounts received by the System pursuant to Section 23.1 of 
19
the Riverboat Gambling Act in any fiscal year do not reduce and 
20
do not constitute payment of any portion of the minimum State 
21
contribution required under this Article in that fiscal year.  
22
Such amounts are intended to reduce the unfunded liability of 
23
the System and shall act to reduce the required State 
24
contributions under this Article in future years only to the 
25
extent that the System's current unfunded liability is normally 
26
reflected in the calculation of those required State 
27
contributions.  A reference in this Article to the "required 
28
State contribution" or any substantially similar term does not 
29
include or apply to any amounts payable to the System under  
30
Section 23.1 of the Riverboat Gambling Act.

31
    Notwithstanding any other provision of this Section, the 
32
required State
contribution for State fiscal year 2005 and for 
33
fiscal year 2008 and each fiscal year thereafter, as
calculated 
34
under this Section and
certified under Section 2-134, shall not 
35
exceed an amount equal to (i) the
amount of the required State 
36
contribution that would have been calculated under
this Section 
 


 






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1
for that fiscal year if the System had not received any 
2
payments
under subsection (d) of Section 7.2 of the General 
3
Obligation Bond Act, minus
(ii) the portion of the State's 
4
total debt service payments for that fiscal
year on the bonds 
5
issued for the purposes of that Section 7.2, as determined
and 
6
certified by the Comptroller, that is the same as the System's 
7
portion of
the total moneys distributed under subsection (d) of 
8
Section 7.2 of the General
Obligation Bond Act. In determining 
9
this maximum for State fiscal years 2008 through 2010, however, 
10
the amount referred to in item (i) shall be increased, as a 
11
percentage of the applicable employee payroll, in equal 
12
increments calculated from the sum of the required State 
13
contribution for State fiscal year 2007 plus the applicable 
14
portion of the State's total debt service payments for fiscal 
15
year 2007  on the bonds issued for the purposes of Section 7.2 
16
of the General
Obligation Bond Act, so that, by State fiscal 
17
year 2011, the
State is contributing at the rate otherwise 
18
required under this Section.


19
(Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)

 



20
    (40 ILCS 5/14-131)
  (from Ch. 108 1/2, par. 14-131)


21
    Sec. 14-131. Contributions by State. 

22
    (a) The State shall make contributions to the System by 
23
appropriations of
amounts which, together with other employer 
24
contributions from trust, federal,
and other funds, employee 
25
contributions, investment income, and other income,
will be 
26
sufficient to meet the cost of maintaining and administering 
27
the System
on a 90% funded basis in accordance with actuarial 
28
recommendations.

29
    For the purposes of this Section and Section 14-135.08, 
30
references to State
contributions refer only to employer 
31
contributions and do not include employee
contributions that 
32
are picked up or otherwise paid by the State or a
department on 
33
behalf of the employee.

34
    (b) The Board shall determine the total amount of State 
35
contributions
required for each fiscal year on the basis of the 
 


 






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1
actuarial tables and other
assumptions adopted by the Board, 
2
using the formula in subsection (e).

3
    The Board shall also determine a State contribution rate 
4
for each fiscal
year, expressed as a percentage of payroll, 
5
based on the total required State
contribution for that fiscal 
6
year (less the amount received by the System from

7
appropriations under Section 8.12 of the State Finance Act and 
8
Section 1 of the
State Pension Funds Continuing Appropriation 
9
Act, if any, for the fiscal year
ending on the June 30 
10
immediately preceding the applicable November 15
certification 
11
deadline), the estimated payroll (including all forms of

12
compensation) for personal services rendered by eligible 
13
employees, and the
recommendations of the actuary.

14
    For the purposes of this Section and Section 14.1 of the 
15
State Finance Act,
the term "eligible employees" includes 
16
employees who participate in the System,
persons who may elect 
17
to participate in the System but have not so elected,
persons 
18
who are serving a qualifying period that is required for 
19
participation,
and annuitants employed by a department as 
20
described in subdivision (a)(1) or
(a)(2) of Section 14-111.

21
    (c) Contributions shall be made by the several departments 
22
for each pay
period by warrants drawn by the State Comptroller 
23
against their respective
funds or appropriations based upon 
24
vouchers stating the amount to be so
contributed.  These amounts 
25
shall be based on the full rate certified by the
Board under 
26
Section 14-135.08 for that fiscal year.
From the effective date 
27
of this amendatory Act of the 93rd General
Assembly through the 
28
payment of the final payroll from fiscal year 2004

29
appropriations, the several departments shall not make 
30
contributions
for the remainder of fiscal year 2004 but shall 
31
instead make payments
as required under subsection (a-1) of 
32
Section 14.1 of the State Finance Act.
The several departments 
33
shall resume those contributions at the commencement of
fiscal 
34
year 2005.

35
    (d) If an employee is paid from trust funds or federal 
36
funds, the
department or other employer shall pay employer 
 


 






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1
contributions from those funds
to the System at the certified 
2
rate, unless the terms of the trust or the
federal-State 
3
agreement preclude the use of the funds for that purpose, in

4
which case the required employer contributions shall be paid by 
5
the State.
From the effective date of this amendatory
Act of 
6
the 93rd General Assembly through the payment of the final

7
payroll from fiscal year 2004 appropriations, the department or 
8
other
employer shall not pay contributions for the remainder of 
9
fiscal year
2004 but shall instead make payments as required 
10
under subsection (a-1) of
Section 14.1 of the State Finance 
11
Act. The department or other employer shall
resume payment of

12
contributions at the commencement of fiscal year 2005.

13
    (e) For State fiscal years 2011 through 2045, the minimum 
14
contribution
to the System to be made by the State for each 
15
fiscal year shall be an amount
determined by the System to be 
16
sufficient to bring the total assets of the
System up to 90% of 
17
the total actuarial liabilities of the System by the end
of 
18
State fiscal year 2045.  In making these determinations, the 
19
required State
contribution shall be calculated each year as a 
20
level percentage of payroll
over the years remaining to and 
21
including fiscal year 2045 and shall be
determined under the 
22
projected unit credit actuarial cost method.

23
    For State fiscal years 1996 through 2005, the State 
24
contribution to
the System, as a percentage of the applicable 
25
employee payroll, shall be
increased in equal annual increments 
26
so that by State fiscal year 2011, the
State is contributing at 
27
the rate required under this Section; except that
(i) for State 
28
fiscal year 1998, for all purposes of this Code and any other

29
law of this State, the certified percentage of the applicable 
30
employee payroll
shall be 5.052% for employees earning eligible 
31
creditable service under Section
14-110 and 6.500% for all 
32
other employees, notwithstanding any contrary
certification 
33
made under Section 14-135.08 before the effective date of this

34
amendatory Act of 1997, and (ii)
in the following specified 
35
State fiscal years, the State contribution to
the System shall 
36
not be less than the following indicated percentages of the

 


 






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1
applicable employee payroll, even if the indicated percentage 
2
will produce a
State contribution in excess of the amount 
3
otherwise required under this
subsection and subsection (a):

4
9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY 
5
2002;
10.6% in FY 2003; and
10.8% in FY 2004.

6
    Notwithstanding any other provision of this Article, the 
7
total required State
contribution to the System for State 
8
fiscal year 2006 is $203,783,900.

9
    Notwithstanding any other provision of this Article, the 
10
total required State
contribution to the System for State 
11
fiscal year 2007 is $344,164,400.

12
    For each of State fiscal years 2008 through 2010, the State 
13
contribution to
the System, as a percentage of the applicable 
14
employee payroll, shall be
increased in equal annual increments 
15
from the required State contribution for State fiscal year 
16
2007, so that by State fiscal year 2011, the
State is 
17
contributing at the rate otherwise required under this Section.

18
    Beginning in State fiscal year 2046, the minimum State 
19
contribution for
each fiscal year shall be the amount needed to 
20
maintain the total assets of
the System at 90% of the total 
21
actuarial liabilities of the System.

22
    Amounts received by the System pursuant to Section 23.1 of 
23
the Riverboat Gambling Act in any fiscal year do not reduce and 
24
do not constitute payment of any portion of the minimum State 
25
contribution required under this Article in that fiscal year.  
26
Such amounts are intended to reduce the unfunded liability of 
27
the System and shall act to reduce the required State 
28
contributions under this Article in future years only to the 
29
extent that the System's current unfunded liability is normally 
30
reflected in the calculation of those required State 
31
contributions.  A reference in this Article to the "required 
32
State contribution" or any substantially similar term does not 
33
include or apply to any amounts payable to the System under  
34
Section 23.1 of the Riverboat Gambling Act.

35
    Notwithstanding any other provision of this Section, the 
36
required State
contribution for State fiscal year 2005 and for 
 


 






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1
fiscal year 2008 and each fiscal year thereafter, as
calculated 
2
under this Section and
certified under Section 14-135.08, shall 
3
not exceed an amount equal to (i) the
amount of the required 
4
State contribution that would have been calculated under
this 
5
Section for that fiscal year if the System had not received any 
6
payments
under subsection (d) of Section 7.2 of the General 
7
Obligation Bond Act, minus
(ii) the portion of the State's 
8
total debt service payments for that fiscal
year on the bonds 
9
issued for the purposes of that Section 7.2, as determined
and 
10
certified by the Comptroller, that is the same as the System's 
11
portion of
the total moneys distributed under subsection (d) of 
12
Section 7.2 of the General
Obligation Bond Act. In determining 
13
this maximum for State fiscal years 2008 through 2010, however, 
14
the amount referred to in item (i) shall be increased, as a 
15
percentage of the applicable employee payroll, in equal 
16
increments calculated from the sum of the required State 
17
contribution for State fiscal year 2007 plus the applicable 
18
portion of the State's total debt service payments for fiscal 
19
year 2007  on the bonds issued for the purposes of Section 7.2 
20
of the General
Obligation Bond Act, so that, by State fiscal 
21
year 2011, the
State is contributing at the rate otherwise 
22
required under this Section.

23
    (f) After the submission of all payments for eligible 
24
employees
from personal services line items in fiscal year 2004 
25
have been made,
the Comptroller shall provide to the System a 
26
certification of the sum
of all fiscal year 2004 expenditures 
27
for personal services that would
have been covered by payments 
28
to the System under this Section if the
provisions of this 
29
amendatory Act of the 93rd General Assembly had not been

30
enacted. Upon
receipt of the certification, the System shall 
31
determine the amount
due to the System based on the full rate 
32
certified by the Board under
Section 14-135.08 for fiscal year 
33
2004 in order to meet the State's
obligation under this 
34
Section. The System shall compare this amount
due to the amount 
35
received by the System in fiscal year 2004 through
payments 
36
under this Section and under Section 6z-61 of the State Finance 
 


 






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1
Act.
If the amount
due is more than the amount received, the 
2
difference shall be termed the
"Fiscal Year 2004 Shortfall" for 
3
purposes of this Section, and the
Fiscal Year 2004 Shortfall 
4
shall be satisfied under Section 1.2 of the State
Pension Funds 
5
Continuing Appropriation Act. If the amount due is less than 
6
the
amount received, the
difference shall be termed the "Fiscal 
7
Year 2004 Overpayment" for purposes of
this Section, and the 
8
Fiscal Year 2004 Overpayment shall be repaid by
the System to 
9
the Pension Contribution Fund as soon as practicable
after the 
10
certification.

11
(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, 
12
eff. 6-1-05.)


 



13
    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)


14
    Sec. 15-155. Employer contributions. 

15
    (a) The State of Illinois shall make contributions by 
16
appropriations of
amounts which, together with the other 
17
employer contributions from trust,
federal, and other funds, 
18
employee contributions, income from investments,
and other 
19
income of this System, will be sufficient to meet the cost of

20
maintaining and administering the System on a 90% funded basis 
21
in accordance
with actuarial recommendations.

22
    The Board shall determine the amount of State contributions 
23
required for
each fiscal year on the basis of the actuarial 
24
tables and other assumptions
adopted by the Board and the 
25
recommendations of the actuary, using the formula
in subsection 
26
(a-1).

27
    (a-1) For State fiscal years 2011 through 2045, the minimum 
28
contribution
to the System to be made by the State for each 
29
fiscal year shall be an amount
determined by the System to be 
30
sufficient to bring the total assets of the
System up to 90% of 
31
the total actuarial liabilities of the System by the end of

32
State fiscal year 2045.  In making these determinations, the 
33
required State
contribution shall be calculated each year as a 
34
level percentage of payroll
over the years remaining to and 
35
including fiscal year 2045 and shall be
determined under the 
 


 






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1
projected unit credit actuarial cost method.

2
    For State fiscal years 1996 through 2005, the State 
3
contribution to
the System, as a percentage of the applicable 
4
employee payroll, shall be
increased in equal annual increments 
5
so that by State fiscal year 2011, the
State is contributing at 
6
the rate required under this Section.

7
    Notwithstanding any other provision of this Article, the 
8
total required State
contribution for State fiscal year 2006 is 
9
$166,641,900.

10
    Notwithstanding any other provision of this Article, the 
11
total required State
contribution for State fiscal year 2007 is 
12
$252,064,100.

13
    For each of State fiscal years 2008 through 2010, the State 
14
contribution to
the System, as a percentage of the applicable 
15
employee payroll, shall be
increased in equal annual increments 
16
from the required State contribution for State fiscal year 
17
2007, so that by State fiscal year 2011, the
State is 
18
contributing at the rate otherwise required under this Section.

19
    Beginning in State fiscal year 2046, the minimum State 
20
contribution for
each fiscal year shall be the amount needed to 
21
maintain the total assets of
the System at 90% of the total 
22
actuarial liabilities of the System.

23
    Amounts received by the System pursuant to Section 23.1 of 
24
the Riverboat Gambling Act in any fiscal year do not reduce and 
25
do not constitute payment of any portion of the minimum State 
26
contribution required under this Article in that fiscal year.  
27
Such amounts are intended to reduce the unfunded liability of 
28
the System and shall act to reduce the required State 
29
contributions under this Article in future years only to the 
30
extent that the System's current unfunded liability is normally 
31
reflected in the calculation of those required State 
32
contributions.  A reference in this Article to the "required 
33
State contribution" or any substantially similar term does not 
34
include or apply to any amounts payable to the System under  
35
Section 23.1 of the Riverboat Gambling Act.

36
    Notwithstanding any other provision of this Section, the 
 


 






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1
required State
contribution for State fiscal year 2005 and for 
2
fiscal year 2008 and each fiscal year thereafter, as
calculated 
3
under this Section and
certified under Section 15-165, shall 
4
not exceed an amount equal to (i) the
amount of the required 
5
State contribution that would have been calculated under
this 
6
Section for that fiscal year if the System had not received any 
7
payments
under subsection (d) of Section 7.2 of the General 
8
Obligation Bond Act, minus
(ii) the portion of the State's 
9
total debt service payments for that fiscal
year on the bonds 
10
issued for the purposes of that Section 7.2, as determined
and 
11
certified by the Comptroller, that is the same as the System's 
12
portion of
the total moneys distributed under subsection (d) of 
13
Section 7.2 of the General
Obligation Bond Act. In determining 
14
this maximum for State fiscal years 2008 through 2010, however, 
15
the amount referred to in item (i) shall be increased, as a 
16
percentage of the applicable employee payroll, in equal 
17
increments calculated from the sum of the required State 
18
contribution for State fiscal year 2007  plus the applicable 
19
portion of the State's total debt service payments for fiscal 
20
year 2007  on the bonds issued for the purposes of Section 7.2 
21
of the General
Obligation Bond Act, so that, by State fiscal 
22
year 2011, the
State is contributing at the rate otherwise 
23
required under this Section.

24
    (b) If an employee is paid from trust or federal funds, the 
25
employer
shall pay to the Board contributions from those funds 
26
which are
sufficient to cover the accruing normal costs on 
27
behalf of the employee.
However, universities having employees 
28
who are compensated out of local
auxiliary funds, income funds, 
29
or service enterprise funds are not required
to pay such 
30
contributions on behalf of those employees.  The local auxiliary

31
funds, income funds, and service enterprise funds of 
32
universities shall not be
considered trust funds for the 
33
purpose of this Article, but funds of alumni
associations, 
34
foundations, and athletic associations which are affiliated 
35
with
the universities included as employers under this Article 
36
and other employers
which do not receive State appropriations 
 


 






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1
are considered to be trust funds for
the purpose of this 
2
Article.

3
    (b-1) The City of Urbana and the City of Champaign shall 
4
each make
employer contributions to this System for their 
5
respective firefighter
employees who participate in this 
6
System pursuant to subsection (h) of Section
15-107.  The rate 
7
of contributions to be made by those municipalities shall
be 
8
determined annually by the Board on the basis of the actuarial 
9
assumptions
adopted by the Board and the recommendations of the 
10
actuary, and shall be
expressed as a percentage of salary for 
11
each such employee.  The Board shall
certify the rate to the 
12
affected municipalities as soon as may be practical.
The 
13
employer contributions required under this subsection shall be 
14
remitted by
the municipality to the System at the same time and 
15
in the same manner as
employee contributions.

16
    (c) Through State fiscal year 1995: The total employer 
17
contribution shall
be apportioned among the various funds of 
18
the State and other employers,
whether trust, federal, or other 
19
funds, in accordance with actuarial procedures
approved by the 
20
Board.  State of Illinois contributions for employers receiving

21
State appropriations for personal services shall be payable 
22
from appropriations
made to the employers or to the System.  The 
23
contributions for Class I
community colleges covering earnings 
24
other than those paid from trust and
federal funds, shall be 
25
payable solely from appropriations to the Illinois
Community 
26
College Board or the System for employer contributions.

27
    (d) Beginning in State fiscal year 1996, the required State 
28
contributions
to the System shall be appropriated directly to 
29
the System and shall be payable
through vouchers issued in 
30
accordance with subsection (c) of Section 15-165, except as 
31
provided in subsection (g).

32
    (e) The State Comptroller shall draw warrants payable to 
33
the System upon
proper certification by the System or by the 
34
employer in accordance with the
appropriation laws and this 
35
Code.

36
    (f) Normal costs under this Section means liability for

 


 






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1
pensions and other benefits which accrues to the System because 
2
of the
credits earned for service rendered by the participants 
3
during the
fiscal year and expenses of administering the 
4
System, but shall not
include the principal of or any 
5
redemption premium or interest on any bonds
issued by the Board 
6
or any expenses incurred or deposits required in
connection 
7
therewith.

8
    (g) If the amount of a participant's earnings for any 
9
academic year used to determine the final rate of earnings 
10
exceeds the amount of his or her earnings with the same 
11
employer for the previous academic year by more than 6%, the 
12
participant's employer shall pay to the System, in addition to 
13
all other payments required under this Section and in 
14
accordance with guidelines established by the System, the 
15
present value of the increase in benefits resulting from the 
16
portion of the increase in earnings that is in excess of 6%.  
17
This present value shall be computed by the System on the basis 
18
of the actuarial assumptions and tables used in the most recent 
19
actuarial valuation of the System that is available at the time 
20
of the computation.   The employer contributions required under 
21
this subsection (g) shall be paid in the form of a lump sum 
22
within 30 days after receipt of the bill after the participant 
23
begins receiving benefits under this Article.

24
    The provisions of this subsection (g) do not apply to 
25
earnings increases paid to participants under contracts or 
26
collective bargaining agreements entered into, amended, or 
27
renewed before the effective date of this amendatory Act of the 
28
94th General Assembly.

29
(Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)

 



30
    (40 ILCS 5/16-158)
  (from Ch. 108 1/2, par. 16-158)


31
    Sec. 16-158. Contributions by State and other employing 
32
units. 

33
    (a) The State shall make contributions to the System by 
34
means of
appropriations from the Common School Fund and other 
35
State funds of amounts
which, together with other employer 
 


 






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1
contributions, employee contributions,
investment income, and 
2
other income, will be sufficient to meet the cost of

3
maintaining and administering the System on a 90% funded basis 
4
in accordance
with actuarial recommendations.

5
    The Board shall determine the amount of State contributions 
6
required for
each fiscal year on the basis of the actuarial 
7
tables and other assumptions
adopted by the Board and the 
8
recommendations of the actuary, using the formula
in subsection 
9
(b-3).

10
    (a-1) Annually, on or before November 15, the Board shall 
11
certify to the
Governor the amount of the required State 
12
contribution for the coming fiscal
year.  The certification 
13
shall include a copy of the actuarial recommendations
upon 
14
which it is based.

15
    On or before May 1, 2004, the Board shall recalculate and 
16
recertify to
the Governor the amount of the required State 
17
contribution to the System for
State fiscal year 2005, taking 
18
into account the amounts appropriated to and
received by the 
19
System under subsection (d) of Section 7.2 of the General

20
Obligation Bond Act.

21
    On or before July 1, 2005, the Board shall recalculate and 
22
recertify
to the Governor the amount of the required State

23
contribution to the System for State fiscal year 2006, taking 
24
into account the changes in required State contributions made 
25
by this amendatory Act of the 94th General Assembly.

26
    (b) Through State fiscal year 1995, the State contributions 
27
shall be
paid to the System in accordance with Section 18-7 of 
28
the School Code.

29
    (b-1) Beginning in State fiscal year 1996, on the 15th day 
30
of each month,
or as soon thereafter as may be practicable, the 
31
Board shall submit vouchers
for payment of State contributions 
32
to the System, in a total monthly amount of
one-twelfth of the 
33
required annual State contribution certified under
subsection 
34
(a-1).
From the
effective date of this amendatory Act of the 
35
93rd General Assembly
through June 30, 2004, the Board shall 
36
not submit vouchers for the
remainder of fiscal year 2004 in 
 


 






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excess of the fiscal year 2004
certified contribution amount 
2
determined under this Section
after taking into consideration 
3
the transfer to the System
under subsection (a) of Section 
4
6z-61 of the State Finance Act.
These vouchers shall be paid by 
5
the State Comptroller and
Treasurer by warrants drawn on the 
6
funds appropriated to the System for that
fiscal year.

7
    If in any month the amount remaining unexpended from all 
8
other appropriations
to the System for the applicable fiscal 
9
year (including the appropriations to
the System under Section 
10
8.12 of the State Finance Act and Section 1 of the
State 
11
Pension Funds Continuing Appropriation Act) is less than the 
12
amount
lawfully vouchered under this subsection, the 
13
difference shall be paid from the
Common School Fund under the 
14
continuing appropriation authority provided in
Section 1.1 of 
15
the State Pension Funds Continuing Appropriation Act.

16
    (b-2) Allocations from the Common School Fund apportioned 
17
to school
districts not coming under this System shall not be 
18
diminished or affected by
the provisions of this Article.

19
    (b-3) For State fiscal years 2011 through 2045, the minimum 
20
contribution
to the System to be made by the State for each 
21
fiscal year shall be an amount
determined by the System to be 
22
sufficient to bring the total assets of the
System up to 90% of 
23
the total actuarial liabilities of the System by the end of

24
State fiscal year 2045.  In making these determinations, the 
25
required State
contribution shall be calculated each year as a 
26
level percentage of payroll
over the years remaining to and 
27
including fiscal year 2045 and shall be
determined under the 
28
projected unit credit actuarial cost method.

29
    For State fiscal years 1996 through 2005, the State 
30
contribution to the
System, as a percentage of the applicable 
31
employee payroll, shall be increased
in equal annual increments 
32
so that by State fiscal year 2011, the State is
contributing at 
33
the rate required under this Section; except that in the

34
following specified State fiscal years, the State contribution 
35
to the System
shall not be less than the following indicated 
36
percentages of the applicable
employee payroll, even if the 
 


 






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indicated percentage will produce a State
contribution in 
2
excess of the amount otherwise required under this subsection

3
and subsection (a), and notwithstanding any contrary 
4
certification made under
subsection (a-1) before the effective 
5
date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% 
6
in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY 
7
2003; and
13.56% in FY 2004.

8
    Notwithstanding any other provision of this Article, the 
9
total required State
contribution for State fiscal year 2006 is 
10
$534,627,700.

11
    Notwithstanding any other provision of this Article, the 
12
total required State
contribution for State fiscal year 2007 is 
13
$738,014,500.

14
    For each of State fiscal years 2008 through 2010, the State 
15
contribution to
the System, as a percentage of the applicable 
16
employee payroll, shall be
increased in equal annual increments 
17
from the required State contribution for State fiscal year 
18
2007, so that by State fiscal year 2011, the
State is 
19
contributing at the rate otherwise required under this Section.

20
    Beginning in State fiscal year 2046, the minimum State 
21
contribution for
each fiscal year shall be the amount needed to 
22
maintain the total assets of
the System at 90% of the total 
23
actuarial liabilities of the System.

24
    Amounts received by the System pursuant to Section 23.1 of 
25
the Riverboat Gambling Act in any fiscal year do not reduce and 
26
do not constitute payment of any portion of the minimum State 
27
contribution required under this Article in that fiscal year.  
28
Such amounts are intended to reduce the unfunded liability of 
29
the System and shall act to reduce the required State 
30
contributions under this Article in future years only to the 
31
extent that the System's current unfunded liability is normally 
32
reflected in the calculation of those required State 
33
contributions.  A reference in this Article to the "required 
34
State contribution" or any substantially similar term does not 
35
include or apply to any amounts payable to the System under  
36
Section 23.1 of the Riverboat Gambling Act.

 


 






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    Notwithstanding any other provision of this Section, the 
2
required State
contribution for State fiscal year 2005 and for 
3
fiscal year 2008 and each fiscal year thereafter, as
calculated 
4
under this Section and
certified under subsection (a-1), shall 
5
not exceed an amount equal to (i) the
amount of the required 
6
State contribution that would have been calculated under
this 
7
Section for that fiscal year if the System had not received any 
8
payments
under subsection (d) of Section 7.2 of the General 
9
Obligation Bond Act, minus
(ii) the portion of the State's 
10
total debt service payments for that fiscal
year on the bonds 
11
issued for the purposes of that Section 7.2, as determined
and 
12
certified by the Comptroller, that is the same as the System's 
13
portion of
the total moneys distributed under subsection (d) of 
14
Section 7.2 of the General
Obligation Bond Act. In determining 
15
this maximum for State fiscal years 2008 through 2010, however, 
16
the amount referred to in item (i) shall be increased, as a 
17
percentage of the applicable employee payroll, in equal 
18
increments calculated from the sum of the required State 
19
contribution for State fiscal year 2007 plus the applicable 
20
portion of the State's total debt service payments for fiscal 
21
year 2007  on the bonds issued for the purposes of Section 7.2 
22
of the General
Obligation Bond Act, so that, by State fiscal 
23
year 2011, the
State is contributing at the rate otherwise 
24
required under this Section.

25
    (c) Payment of the required State contributions and of all 
26
pensions,
retirement annuities, death benefits, refunds, and 
27
other benefits granted
under or assumed by this System, and all 
28
expenses in connection with the
administration and operation 
29
thereof, are obligations of the State.

30
    If members are paid from special trust or federal funds 
31
which are
administered by the employing unit, whether school 
32
district or other
unit, the employing unit shall pay to the 
33
System from such
funds the full accruing retirement costs based 
34
upon that
service, as determined by the System.  Employer 
35
contributions, based on
salary paid to members from federal 
36
funds, may be forwarded by the distributing
agency of the State 
 


 






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1
of Illinois to the System prior to allocation, in an
amount 
2
determined in accordance with guidelines established by such

3
agency and the System.

4
    (d) Effective July 1, 1986, any employer of a teacher as 
5
defined in
paragraph (8) of Section 16-106 shall pay the 
6
employer's normal cost
of benefits based upon the teacher's 
7
service, in addition to
employee contributions, as determined 
8
by the System.  Such employer
contributions shall be forwarded 
9
monthly in accordance with guidelines
established by the 
10
System.

11
    However, with respect to benefits granted under Section 
12
16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) 
13
of Section 16-106, the
employer's contribution shall be 12% 
14
(rather than 20%) of the member's
highest annual salary rate 
15
for each year of creditable service granted, and
the employer 
16
shall also pay the required employee contribution on behalf of

17
the teacher.  For the purposes of Sections 16-133.4 and 
18
16-133.5, a teacher
as defined in paragraph (8) of Section 
19
16-106 who is serving in that capacity
while on leave of 
20
absence from another employer under this Article shall not
be 
21
considered an employee of the employer from which the teacher 
22
is on leave.

23
    (e) Beginning July 1, 1998, every employer of a teacher

24
shall pay to the System an employer contribution computed as 
25
follows:


26
        (1) Beginning July 1, 1998 through June 30, 1999, the 
27
    employer
contribution shall be equal to 0.3% of each 
28
    teacher's salary.


29
        (2) Beginning July 1, 1999 and thereafter, the employer

30
    contribution shall be equal to 0.58% of each teacher's 
31
    salary.

32
The school district or other employing unit may pay these 
33
employer
contributions out of any source of funding available 
34
for that purpose and
shall forward the contributions to the 
35
System on the schedule established
for the payment of member 
36
contributions.

 


 






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1
    These employer contributions are intended to offset a 
2
portion of the cost
to the System of the increases in 
3
retirement benefits resulting from this
amendatory Act of 1998.

4
    Each employer of teachers is entitled to a credit against 
5
the contributions
required under this subsection (e) with 
6
respect to salaries paid to teachers
for the period January 1, 
7
2002 through June 30, 2003, equal to the amount paid
by that 
8
employer under subsection (a-5) of Section 6.6 of the State 
9
Employees
Group Insurance Act of 1971 with respect to salaries 
10
paid to teachers for that
period.

11
    The additional 1% employee contribution required under 
12
Section 16-152 by
this amendatory Act of 1998 is the 
13
responsibility of the teacher and not the
teacher's employer, 
14
unless the employer agrees, through collective bargaining
or 
15
otherwise, to make the contribution on behalf of the teacher.

16
    If an employer is required by a contract in effect on May 
17
1, 1998 between the
employer and an employee organization to 
18
pay, on behalf of all its full-time
employees
covered by this 
19
Article, all mandatory employee contributions required under

20
this Article, then the employer shall be excused from paying 
21
the employer
contribution required under this subsection (e) 
22
for the balance of the term
of that contract.  The employer and 
23
the employee organization shall jointly
certify to the System 
24
the existence of the contractual requirement, in such
form as 
25
the System may prescribe.  This exclusion shall cease upon the

26
termination, extension, or renewal of the contract at any time 
27
after May 1,
1998.

28
    (f) If the amount of a teacher's salary for any school year 
29
used to determine final average salary exceeds the amount of 
30
his or her salary with the same employer for the previous 
31
school year by more than 6%, the teacher's employer shall pay 
32
to the System, in addition to all other payments required under 
33
this Section and in accordance with guidelines established by 
34
the System, the present value of the increase in benefits 
35
resulting from the portion of the increase in salary that is in 
36
excess of 6%.  This present value shall be computed by the 
 


 






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1
System on the basis of the actuarial assumptions and tables 
2
used in the most recent actuarial valuation of the System that 
3
is available at the time of the computation.   The employer 
4
contributions required under this subsection (f) shall be paid 
5
in the form of a lump sum within 30 days after receipt of the 
6
bill after the teacher begins receiving benefits under this 
7
Article.

8
    The provisions of this subsection (f) do not apply to 
9
salary increases paid to teachers under contracts or collective 
10
bargaining agreements entered into, amended, or renewed before 
11
the effective date of this amendatory Act of the 94th General 
12
Assembly.

13
(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, 
14
eff. 6-1-05.)

 



15
    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)


16
    Sec. 18-131. Financing; employer contributions. 

17
    (a) The State of Illinois shall make contributions to this 
18
System by
appropriations of the amounts which, together with 
19
the contributions of
participants, net earnings on 
20
investments, and other income, will meet the
costs of 
21
maintaining and administering this System on a 90% funded basis 
22
in
accordance with actuarial recommendations.

23
    (b) The Board shall determine the amount of State 
24
contributions
required for each fiscal year on the basis of the 
25
actuarial tables and other
assumptions adopted by the Board and 
26
the prescribed rate of interest, using
the formula in 
27
subsection (c).

28
    (c) For State fiscal years 2011 through 2045, the minimum 
29
contribution
to the System to be made by the State for each 
30
fiscal year shall be an amount
determined by the System to be 
31
sufficient to bring the total assets of the
System up to 90% of 
32
the total actuarial liabilities of the System by the end of

33
State fiscal year 2045.  In making these determinations, the 
34
required State
contribution shall be calculated each year as a 
35
level percentage of payroll
over the years remaining to and 
 


 






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1
including fiscal year 2045 and shall be
determined under the 
2
projected unit credit actuarial cost method.

3
    For State fiscal years 1996 through 2005, the State 
4
contribution to
the System, as a percentage of the applicable 
5
employee payroll, shall be
increased in equal annual increments 
6
so that by State fiscal year 2011, the
State is contributing at 
7
the rate required under this Section.

8
    Notwithstanding any other provision of this Article, the 
9
total required State
contribution for State fiscal year 2006 is 
10
$29,189,400.

11
    Notwithstanding any other provision of this Article, the 
12
total required State
contribution for State fiscal year 2007 is 
13
$35,236,800.

14
    For each of State fiscal years 2008 through 2010, the State 
15
contribution to
the System, as a percentage of the applicable 
16
employee payroll, shall be
increased in equal annual increments 
17
from the required State contribution for State fiscal year 
18
2007, so that by State fiscal year 2011, the
State is 
19
contributing at the rate otherwise required under this Section.

20
    Beginning in State fiscal year 2046, the minimum State 
21
contribution for
each fiscal year shall be the amount needed to 
22
maintain the total assets of
the System at 90% of the total 
23
actuarial liabilities of the System.

24
    Amounts received by the System pursuant to Section 23.1 of 
25
the Riverboat Gambling Act in any fiscal year do not reduce and 
26
do not constitute payment of any portion of the minimum State 
27
contribution required under this Article in that fiscal year.  
28
Such amounts are intended to reduce the unfunded liability of 
29
the System and shall act to reduce the required State 
30
contributions under this Article in future years only to the 
31
extent that the System's current unfunded liability is normally 
32
reflected in the calculation of those required State 
33
contributions.  A reference in this Article to the "required 
34
State contribution" or any substantially similar term does not 
35
include or apply to any amounts payable to the System under  
36
Section 23.1 of the Riverboat Gambling Act.

 


 






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1
    Notwithstanding any other provision of this Section, the 
2
required State
contribution for State fiscal year 2005 and for 
3
fiscal year 2008 and each fiscal year thereafter, as
calculated 
4
under this Section and
certified under Section 18-140, shall 
5
not exceed an amount equal to (i) the
amount of the required 
6
State contribution that would have been calculated under
this 
7
Section for that fiscal year if the System had not received any 
8
payments
under subsection (d) of Section 7.2 of the General 
9
Obligation Bond Act, minus
(ii) the portion of the State's 
10
total debt service payments for that fiscal
year on the bonds 
11
issued for the purposes of that Section 7.2, as determined
and 
12
certified by the Comptroller, that is the same as the System's 
13
portion of
the total moneys distributed under subsection (d) of 
14
Section 7.2 of the General
Obligation Bond Act. In determining 
15
this maximum for State fiscal years 2008 through 2010, however, 
16
the amount referred to in item (i) shall be increased, as a 
17
percentage of the applicable employee payroll, in equal 
18
increments calculated from the sum of the required State 
19
contribution for State fiscal year 2007 plus the applicable 
20
portion of the State's total debt service payments for fiscal 
21
year 2007  on the bonds issued for the purposes of Section 7.2 
22
of the General
Obligation Bond Act, so that, by State fiscal 
23
year 2011, the
State is contributing at the rate otherwise 
24
required under this Section.

25
(Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05.)

 
26
    Section 10. The Riverboat Gambling Act is amended  by 
27
changing Section 13 and  by adding Section 23.1 as follows:
 



28
    (230 ILCS 10/13)  (from Ch. 120, par. 2413)



29
    Sec. 13. Wagering tax; rate; distribution. 

30
    (a) Until January 1, 1998, a tax is imposed on the adjusted 
31
gross
receipts received from gambling games authorized under 
32
this Act at the rate of
20%.

33
    (a-1) From January 1, 1998 until July 1, 2002, a privilege 
34
tax is
imposed on persons engaged in the business of conducting 
 


 






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1
riverboat gambling
operations, based on the adjusted gross 
2
receipts received by a licensed owner
from gambling games 
3
authorized under this Act at the following rates:


4
        15% of annual adjusted gross receipts up to and 
5
    including $25,000,000;


6
        20% of annual adjusted gross receipts in excess of 
7
    $25,000,000 but not
exceeding $50,000,000;


8
        25% of annual adjusted gross receipts in excess of 
9
    $50,000,000 but not
exceeding $75,000,000;


10
        30% of annual adjusted gross receipts in excess of 
11
    $75,000,000 but not
exceeding $100,000,000;


12
        35% of annual adjusted gross receipts in excess of 
13
    $100,000,000.

14
    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
15
is imposed on
persons engaged in the business of conducting 
16
riverboat gambling operations,
other than licensed managers 
17
conducting riverboat gambling operations on behalf
of the 
18
State,  based on the adjusted gross receipts received by a 
19
licensed
owner from gambling games authorized under this Act at 
20
the following rates:


21
        15% of annual adjusted gross receipts up to and 
22
    including $25,000,000;


23
        22.5% of annual adjusted gross receipts in excess of 
24
    $25,000,000 but not
exceeding $50,000,000;


25
        27.5% of annual adjusted gross receipts in excess of 
26
    $50,000,000 but not
exceeding $75,000,000;


27
        32.5% of annual adjusted gross receipts in excess of 
28
    $75,000,000 but not
exceeding $100,000,000;


29
        37.5% of annual adjusted gross receipts in excess of 
30
    $100,000,000 but not
exceeding $150,000,000;


31
        45% of annual adjusted gross receipts in excess of 
32
    $150,000,000 but not
exceeding $200,000,000;


33
        50% of annual adjusted gross receipts in excess of 
34
    $200,000,000.

35
    (a-3) Beginning July 1, 2003, a privilege tax is imposed on 
36
persons engaged
in the business of conducting riverboat 
 


 






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1
gambling operations, other than
licensed managers conducting 
2
riverboat gambling operations on behalf of the
State, based on 
3
the adjusted gross receipts received by a licensed owner from

4
gambling games authorized under this Act at the following 
5
rates:


6
        15% of annual adjusted gross receipts up to and 
7
    including $25,000,000;


8
        27.5% of annual adjusted gross receipts in excess of 
9
    $25,000,000 but not
exceeding $37,500,000;


10
        32.5% of annual adjusted gross receipts in excess of 
11
    $37,500,000 but not
exceeding $50,000,000;


12
        37.5% of annual adjusted gross receipts in excess of 
13
    $50,000,000 but not
exceeding $75,000,000;


14
        45% of annual adjusted gross receipts in excess of 
15
    $75,000,000 but not
exceeding $100,000,000;


16
        50% of annual adjusted gross receipts in excess of 
17
    $100,000,000 but not
exceeding $250,000,000;


18
        70% of annual adjusted gross receipts in excess of 
19
    $250,000,000.

20
    An amount equal to the amount of wagering taxes collected 
21
under this
subsection (a-3) that are in addition to the amount 
22
of wagering taxes that
would have been collected if the 
23
wagering tax rates under subsection (a-2)
were in effect shall 
24
be paid into the Common School Fund.

25
    The privilege tax imposed under this subsection (a-3) shall 
26
no longer be
imposed beginning on the earlier of (i) July 1, 
27
2005; (ii) the first date
after June 20, 2003 that riverboat 
28
gambling operations are conducted
pursuant to a dormant 
29
license; or (iii) the first day that riverboat gambling

30
operations are conducted under the authority of an owners 
31
license that is in
addition to the 10 owners licenses initially 
32
authorized under this Act.
For the purposes of this subsection 
33
(a-3), the term "dormant license"
means an owners license that 
34
is authorized by this Act under which no
riverboat gambling 
35
operations are being conducted on June 20, 2003.

36
    (a-4) Beginning on the first day on which the tax imposed 
 


 






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1
under
subsection (a-3) is no longer imposed, a privilege tax is 
2
imposed on persons
engaged in the business of conducting 
3
riverboat gambling operations, other
than licensed managers 
4
conducting riverboat gambling operations on behalf of
the 
5
State, based on the adjusted gross receipts received by a 
6
licensed owner
from gambling games authorized under this Act at 
7
the following rates:


8
        15% of annual adjusted gross receipts up to and 
9
    including $25,000,000;


10
        22.5% of annual adjusted gross receipts in excess of 
11
    $25,000,000 but not
exceeding $50,000,000;


12
        27.5% of annual adjusted gross receipts in excess of 
13
    $50,000,000 but not
exceeding $75,000,000;


14
        32.5% of annual adjusted gross receipts in excess of 
15
    $75,000,000 but not
exceeding $100,000,000;


16
        37.5% of annual adjusted gross receipts in excess of 
17
    $100,000,000 but not
exceeding $150,000,000;


18
        45% of annual adjusted gross receipts in excess of 
19
    $150,000,000 but not
exceeding $200,000,000;


20
        50% of annual adjusted gross receipts in excess of 
21
    $200,000,000.

22
    (a-8) Riverboat gambling operations conducted by a 
23
licensed manager on
behalf of the State are not subject to the 
24
tax imposed under this Section.

25
    (a-10) The taxes imposed by this Section shall be paid by 
26
the licensed
owner to the Board not later than 3:00 o'clock 
27
p.m. of the day after the day
when the wagers were made.

28
    (a-15) If the privilege tax imposed under subsection (a-3) 
29
is no longer imposed pursuant to item (i) of the last paragraph 
30
of subsection (a-3), then by June 15 of each year, each owners 
31
licensee, other than an owners licensee that   admitted 1,000,000 
32
persons or
fewer in calendar year 2004, must, in addition to 
33
the payment of all amounts otherwise due under this Section, 
34
pay to the Board the amount, if any, by which the base amount 
35
for  the licensed owner exceeds the amount of tax paid under 
36
this Section by the licensed owner in the then current State 
 


 






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1
fiscal year. The obligation imposed by this subsection (a-15) 
2
is binding on any person, firm, corporation, or other entity 
3
that acquires an ownership interest in any such owners license. 
4
The obligation imposed under this subsection (a-15) terminates 
5
on the earliest of: (i) July 1, 2007, (ii) the first day after 
6
the effective date of this amendatory Act of the 94th General 
7
Assembly that riverboat gambling operations are conducted 
8
pursuant to a dormant license, (iii) the first day that 
9
riverboat gambling operations are conducted under the 
10
authority of an owners license that is in addition to the 10 
11
owners licenses initially authorized under this Act, or (iv) 
12
the first day that a licensee under the Illinois Horse Racing 
13
Act of 1975 conducts gaming operations with slot machines or 
14
other electronic gaming devices.  The Board must reduce the 
15
obligation imposed under this subsection (a-15) by an amount 
16
the Board deems reasonable for any of the following reasons: 
17
(A) an act or acts of God, (B) an act of bioterrorism or 
18
terrorism or a bioterrorism or terrorism threat that was 
19
investigated by a law enforcement agency, or (C) a condition 
20
beyond the control of the owners licensee that does not result 
21
from any act or omission by the owners licensee or any of its 
22
agents and that poses a hazardous threat to the health and 
23
safety of patrons. If an owners licensee pays an amount in 
24
excess of its liability under this Section, the Board shall 
25
apply the overpayment to future payments required under this 
26
Section.
27
    For purposes of this subsection (a-15):
28
    "Act of God" means an incident caused by the operation of 
29
an extraordinary force that cannot be foreseen, that cannot be 
30
avoided by the exercise of due care, and for which no person 
31
can be held liable.

32
    "Base amount" means the following:
33
        For a riverboat in Alton, $31,000,000.

34
        For a riverboat in East Peoria, $43,000,000.

35
        For the Empress riverboat in Joliet, $86,000,000.

36
        For a riverboat in Metropolis, $45,000,000.

 


 






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        For the Harrah's  riverboat in Joliet, $114,000,000.

2
        For a riverboat in Aurora, $86,000,000.

3
        For a riverboat in East St. Louis, $48,500,000.

4
        For a riverboat in Elgin, $198,000,000.

5
    "Dormant license" has the meaning ascribed to it in 
6
subsection (a-3).

7
    (b) Until January 1, 1998, 25% of the tax revenue deposited 
8
in the State
Gaming Fund under this Section shall be paid, 
9
subject to appropriation by the
General Assembly, to the unit 
10
of local government which is designated as the
home dock of the 
11
riverboat. Beginning January 1, 1998, from the tax revenue

12
deposited in the State Gaming Fund under this Section, an 
13
amount equal to 5% of
adjusted gross receipts generated by a 
14
riverboat shall be paid monthly, subject
to appropriation by 
15
the General Assembly, to the unit of local government that
is 
16
designated as the home dock of the riverboat. From the tax 
17
revenue
deposited in the State Gaming Fund pursuant to 
18
riverboat gambling operations
conducted by a licensed manager 
19
on behalf of the State, an amount equal to 5%
of adjusted gross 
20
receipts generated pursuant to those riverboat gambling

21
operations shall be paid monthly,
subject to appropriation by 
22
the General Assembly, to the unit of local
government that is 
23
designated as the home dock of the riverboat upon which
those 
24
riverboat gambling operations are conducted.

25
    (b-5) After the payments required under subsection (b) have 
26
been made, all of the remaining monies received by the Board 
27
for the issuance of and conduct of gambling under any license 
28
issued under the jurisdiction of the Illinois Gaming Board on 
29
or after the effective date of this amendatory Act of the 94th 
30
General Assembly shall be transferred to the Pension Reserve 
31
Fund as soon as practical after  receipt of those funds into the 
32
State Gaming Fund. The transfers provided for under this 
33
subsection (b-5) shall not be made in any fiscal year following 
34
a fiscal year in which all of the designated retirement 
35
systems, as defined in Section 23.1, are at least 90% funded, 
36
as determined by the Commission on Government Forecasting and 
 


 






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1
Accountability.

2
    (c) Appropriations, as approved by the General Assembly, 
3
may be made
from the State Gaming Fund to the Department of 
4
Revenue and the Department
of State Police for the 
5
administration and enforcement of this Act, or to the

6
Department of Human Services for the administration of programs 
7
to treat
problem gambling.

8
    (c-5) After the payments required under subsections (b), 
9
(b-5), and (c) have been
made, an amount equal to 15% of the 
10
adjusted gross receipts of (1) an owners
licensee that 
11
relocates pursuant to Section 11.2,
(2) an owners licensee


12
conducting riverboat gambling operations
pursuant to an
owners 
13
license that is initially issued after June
25, 1999,
or (3) 
14
the first
riverboat gambling operations conducted by a licensed 
15
manager on behalf of the
State under Section 7.3,
whichever 
16
comes first, shall be paid from the State
Gaming Fund into the 
17
Horse Racing Equity Fund.

18
    (c-10) Each year the General Assembly shall appropriate 
19
from the General
Revenue Fund to the Education Assistance Fund 
20
an amount equal to the amount
paid into the Horse Racing Equity 
21
Fund pursuant to subsection (c-5) in the
prior calendar year.

22
    (c-15) After the payments required under subsections (b), 
23
(b-5), (c), and (c-5)
have been made, an amount equal to 2% of 
24
the adjusted gross receipts of (1)
an owners licensee that 
25
relocates pursuant to Section 11.2, (2) an owners
licensee 
26
conducting riverboat gambling operations pursuant to
an
owners 
27
license that is initially issued after June 25, 1999,
or (3) 
28
the first
riverboat gambling operations conducted by a licensed 
29
manager on behalf of the
State under Section 7.3,
whichever 
30
comes first, shall be paid, subject to appropriation
from the 
31
General Assembly, from the State Gaming Fund to each home rule

32
county with a population of over 3,000,000 inhabitants for the 
33
purpose of
enhancing the county's criminal justice system.

34
    (c-20) Each year the General Assembly shall appropriate 
35
from the General
Revenue Fund to the Education Assistance Fund 
36
an amount equal to the amount
paid to each home rule county 
 


 






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1
with a population of over 3,000,000 inhabitants
pursuant to 
2
subsection (c-15) in the prior calendar year.

3
    (c-25) After the payments required under subsections (b), 
4
(b-5), (c), (c-5), and
(c-15) have been made, an amount equal 
5
to 2% of the
adjusted gross receipts of (1) an owners licensee


6
that
relocates pursuant to Section 11.2, (2) an
owners
licensee 
7
conducting riverboat gambling operations pursuant to
an
owners 
8
license
that is initially issued after June 25, 1999,
or (3) 
9
the first
riverboat gambling operations conducted by a licensed 
10
manager on behalf of the
State under Section 7.3,
whichever

11
comes first,
shall be paid from the State
Gaming Fund to 
12
Chicago State University.

13
    (d) From time to time, the
Board shall transfer the 
14
remainder of the funds
generated by this Act into the Education

15
Assistance Fund, created by Public Act 86-0018, of the State of 
16
Illinois.

17
    (e) Nothing in this Act shall prohibit the unit of local 
18
government
designated as the home dock of the riverboat from 
19
entering into agreements
with other units of local government 
20
in this State or in other states to
share its portion of the 
21
tax revenue.

22
    (f) To the extent practicable, the Board shall administer 
23
and collect the
wagering taxes imposed by this Section in a 
24
manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
25
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the 
26
Retailers' Occupation Tax Act and Section 3-7 of the
Uniform 
27
Penalty and Interest Act.

28
(Source: P.A. 93-27, eff. 6-20-03; 93-28, eff. 6-20-03; 94-673, 
29
eff. 8-23-05.)

 
30
    (230 ILCS 10/23.1  new)
31
    Sec. 23.1. The Pension Reserve Fund.

32
    (a) The Pension Reserve Fund is a special fund created 
33
within the State Treasury.
34
    (b) Subject to appropriation, the monies in the Pension 
35
Reserve Fund shall be paid to the designated retirement systems 
 


 






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1
to be used for funding the unfunded liabilities of the 
2
designated retirement systems. The amount of the annual 
3
appropriation to
each of the designated retirement systems 
4
shall constitute a portion of the
total amount available for 
5
appropriation under this Section for that fiscal year
that is 
6
the same as that retirement system's portion of the
total 
7
actuarial reserve deficiency of the systems, as most
recently 
8
determined by the Governor's Office of Management and
Budget.
9
    "Designated retirement systems" means:
10
        (1) the State Employees' Retirement System of
    
11
    Illinois;
12
        (2) the Teachers' Retirement System of the State of

    
13
    Illinois;
14
        (3) the State Universities Retirement System;
15
        (4) the Judges Retirement System of Illinois; and
16
        (5) the General Assembly Retirement System.
17
    (c) The Governor's Office of Management and Budget shall

18
determine the individual and total reserve deficiencies of the

19
designated retirement systems. For this purpose, the

20
Governor's Office of Management and Budget shall utilize the

21
latest available audit and actuarial reports of each of the

22
retirement systems and the relevant reports and statistics of


23
the Public Pension Division of the Department of
Financial and 
24
Professional Regulation.
25
    (d) Appropriations authorized under this Section shall be 
26
in addition to, not in lieu of, any State contributions 
27
required under Section 2-124, 14-131, 15-155, 16-158, or 18-131 
28
of the Illinois Pension Code.
 
29
    Section 15. The State Finance Act is amended by adding 
30
Section
5.663 as follows:


 
31
    (30 ILCS 105/5.663 new)


32
    Sec. 5.663. The Pension Reserve Fund.

 

33
    Section 99. Effective date. This Act takes effect upon 
 


 






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becoming law.