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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Section 16-158 as follows:
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6 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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7 | Sec. 16-158. Contributions by State and other employing | ||||||||||||||||||||||||
8 | units.
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9 | (a) The
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
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14 | maintaining and administering the System on a 90% funded basis | ||||||||||||||||||||||||
15 | in accordance
with actuarial recommendations.
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16 | The Board shall determine the amount of State contributions | ||||||||||||||||||||||||
17 | required for
each fiscal year on the basis of the actuarial | ||||||||||||||||||||||||
18 | tables and other assumptions
adopted by the Board and the | ||||||||||||||||||||||||
19 | recommendations of the actuary, using the formula
in subsection | ||||||||||||||||||||||||
20 | (b-3).
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21 | (a-1) Annually, on or before November 15, the Board shall | ||||||||||||||||||||||||
22 | certify to the
Governor the amount of the required State | ||||||||||||||||||||||||
23 | contribution for the coming fiscal
year. The certification |
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1 | shall include a copy of the actuarial recommendations
upon | ||||||
2 | which it is based.
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3 | On or before May 1, 2004, the Board shall recalculate and | ||||||
4 | recertify to
the Governor the amount of the required State | ||||||
5 | contribution to the System for
State fiscal year 2005, taking | ||||||
6 | into account the amounts appropriated to and
received by the | ||||||
7 | System under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act.
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9 | On or before July 1, 2005, the Board shall recalculate and | ||||||
10 | recertify
to the Governor the amount of the required State
| ||||||
11 | contribution to the System for State fiscal year 2006, taking | ||||||
12 | into account the changes in required State contributions made | ||||||
13 | by this amendatory Act of the 94th General Assembly.
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14 | (b) Through State fiscal year 1995, the State contributions | ||||||
15 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
16 | the School Code.
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17 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
18 | of each month,
or as soon thereafter as may be practicable, the | ||||||
19 | Board shall submit vouchers
for payment of State contributions | ||||||
20 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
21 | required annual State contribution certified under
subsection | ||||||
22 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
23 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
24 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
25 | excess of the fiscal year 2004
certified contribution amount | ||||||
26 | determined under this Section
after taking into consideration |
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| |||||||
1 | the transfer to the System
under subsection (a) of Section | ||||||
2 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
3 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
4 | funds appropriated to the System for that
fiscal year.
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5 | If in any month the amount remaining unexpended from all | ||||||
6 | other appropriations
to the System for the applicable fiscal | ||||||
7 | year (including the appropriations to
the System under Section | ||||||
8 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
9 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
10 | amount
lawfully vouchered under this subsection, the | ||||||
11 | difference shall be paid from the
Common School Fund under the | ||||||
12 | continuing appropriation authority provided in
Section 1.1 of | ||||||
13 | the State Pension Funds Continuing Appropriation Act.
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14 | (b-2) Allocations from the Common School Fund apportioned | ||||||
15 | to school
districts not coming under this System shall not be | ||||||
16 | diminished or affected by
the provisions of this Article.
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17 | (b-3) For State fiscal years 2011 through 2045, the minimum | ||||||
18 | contribution
to the System to be made by the State for each | ||||||
19 | fiscal year shall be an amount
determined by the System to be | ||||||
20 | sufficient to bring the total assets of the
System up to 90% of | ||||||
21 | the total actuarial liabilities of the System by the end of
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22 | State fiscal year 2045. In making these determinations, the | ||||||
23 | required State
contribution shall be calculated each year as a | ||||||
24 | level percentage of payroll
over the years remaining to and | ||||||
25 | including fiscal year 2045 and shall be
determined under the | ||||||
26 | projected unit credit actuarial cost method.
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1 | For State fiscal years 1996 through 2005, the State | ||||||
2 | contribution to the
System, as a percentage of the applicable | ||||||
3 | employee payroll, shall be increased
in equal annual increments | ||||||
4 | so that by State fiscal year 2011, the State is
contributing at | ||||||
5 | the rate required under this Section; except that in the
| ||||||
6 | following specified State fiscal years, the State contribution | ||||||
7 | to the System
shall not be less than the following indicated | ||||||
8 | percentages of the applicable
employee payroll, even if the | ||||||
9 | indicated percentage will produce a State
contribution in | ||||||
10 | excess of the amount otherwise required under this subsection
| ||||||
11 | and subsection (a), and notwithstanding any contrary | ||||||
12 | certification made under
subsection (a-1) before the effective | ||||||
13 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
14 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
15 | 2003; and
13.56% in FY 2004.
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16 | Notwithstanding any other provision of this Article, the | ||||||
17 | total required State
contribution for State fiscal year 2006 is | ||||||
18 | $534,627,700.
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19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State
contribution for State fiscal year 2007 is | ||||||
21 | $738,014,500.
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22 | For each of State fiscal years 2008 through 2010, the State | ||||||
23 | contribution to
the System, as a percentage of the applicable | ||||||
24 | employee payroll, shall be
increased in equal annual increments | ||||||
25 | from the required State contribution for State fiscal year | ||||||
26 | 2007, so that by State fiscal year 2011, the
State is |
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1 | contributing at the rate otherwise required under this Section.
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2 | Beginning in State fiscal year 2046, the minimum State | ||||||
3 | contribution for
each fiscal year shall be the amount needed to | ||||||
4 | maintain the total assets of
the System at 90% of the total | ||||||
5 | actuarial liabilities of the System.
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6 | Amounts received by the System pursuant to Section 25 of | ||||||
7 | the Budget Stabilization Act in any fiscal year do not reduce | ||||||
8 | and do not constitute payment of any portion of the minimum | ||||||
9 | State contribution required under this Article in that fiscal | ||||||
10 | year. Such amounts shall not reduce, and shall not be included | ||||||
11 | in the calculation of, the required State contributions under | ||||||
12 | this Article in any future year until the System has reached a | ||||||
13 | funding ratio of at least 90%. A reference in this Article to | ||||||
14 | the "required State contribution" or any substantially similar | ||||||
15 | term does not include or apply to any amounts payable to the | ||||||
16 | System under Section 25 of the Budget Stabilization Act. | ||||||
17 | Notwithstanding any other provision of this Section, the | ||||||
18 | required State
contribution for State fiscal year 2005 and for | ||||||
19 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
20 | under this Section and
certified under subsection (a-1), shall | ||||||
21 | not exceed an amount equal to (i) the
amount of the required | ||||||
22 | State contribution that would have been calculated under
this | ||||||
23 | Section for that fiscal year if the System had not received any | ||||||
24 | payments
under subsection (d) of Section 7.2 of the General | ||||||
25 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
26 | total debt service payments for that fiscal
year on the bonds |
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1 | issued for the purposes of that Section 7.2, as determined
and | ||||||
2 | certified by the Comptroller, that is the same as the System's | ||||||
3 | portion of
the total moneys distributed under subsection (d) of | ||||||
4 | Section 7.2 of the General
Obligation Bond Act. In determining | ||||||
5 | this maximum for State fiscal years 2008 through 2010, however, | ||||||
6 | the amount referred to in item (i) shall be increased, as a | ||||||
7 | percentage of the applicable employee payroll, in equal | ||||||
8 | increments calculated from the sum of the required State | ||||||
9 | contribution for State fiscal year 2007 plus the applicable | ||||||
10 | portion of the State's total debt service payments for fiscal | ||||||
11 | year 2007 on the bonds issued for the purposes of Section 7.2 | ||||||
12 | of the General
Obligation Bond Act, so that, by State fiscal | ||||||
13 | year 2011, the
State is contributing at the rate otherwise | ||||||
14 | required under this Section.
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15 | (c) Payment of the required State contributions and of all | ||||||
16 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
17 | other benefits granted
under or assumed by this System, and all | ||||||
18 | expenses in connection with the
administration and operation | ||||||
19 | thereof, are obligations of the State.
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20 | If members are paid from special trust or federal funds | ||||||
21 | which are
administered by the employing unit, whether school | ||||||
22 | district or other
unit, the employing unit shall pay to the | ||||||
23 | System from such
funds the full accruing retirement costs based | ||||||
24 | upon that
service, as determined by the System. Employer | ||||||
25 | contributions, based on
salary paid to members from federal | ||||||
26 | 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
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3 | agency and the System.
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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.
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23 | (e) Beginning July 1, 1998, every employer of a teacher
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24 | shall pay to the System an employer contribution computed as | ||||||
25 | follows:
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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.
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3 | (2) Beginning July 1, 1999 and thereafter, the employer
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4 | contribution shall be equal to 0.58% of each teacher's | ||||||
5 | salary.
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6 | The school district or other employing unit may pay these | ||||||
7 | employer
contributions out of any source of funding available | ||||||
8 | for that purpose and
shall forward the contributions to the | ||||||
9 | System on the schedule established
for the payment of member | ||||||
10 | contributions.
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11 | These employer contributions are intended to offset a | ||||||
12 | portion of the cost
to the System of the increases in | ||||||
13 | retirement benefits resulting from this
amendatory Act of 1998.
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14 | Each employer of teachers is entitled to a credit against | ||||||
15 | the contributions
required under this subsection (e) with | ||||||
16 | respect to salaries paid to teachers
for the period January 1, | ||||||
17 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
18 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
19 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
20 | paid to teachers for that
period.
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21 | The additional 1% employee contribution required under | ||||||
22 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
23 | responsibility of the teacher and not the
teacher's employer, | ||||||
24 | unless the employer agrees, through collective bargaining
or | ||||||
25 | otherwise, to make the contribution on behalf of the teacher.
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26 | If an employer is required by a contract in effect on May |
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1 | 1, 1998 between the
employer and an employee organization to | ||||||
2 | pay, on behalf of all its full-time
employees
covered by this | ||||||
3 | Article, all mandatory employee contributions required under
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4 | this Article, then the employer shall be excused from paying | ||||||
5 | the employer
contribution required under this subsection (e) | ||||||
6 | for the balance of the term
of that contract. The employer and | ||||||
7 | the employee organization shall jointly
certify to the System | ||||||
8 | the existence of the contractual requirement, in such
form as | ||||||
9 | the System may prescribe. This exclusion shall cease upon the
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10 | termination, extension, or renewal of the contract at any time | ||||||
11 | after May 1,
1998.
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12 | (f) If the amount of a teacher's salary for any school year | ||||||
13 | used to determine final average salary exceeds the member's | ||||||
14 | annual full-time salary rate with the same employer for the | ||||||
15 | previous school year by more than 6%, the teacher's employer | ||||||
16 | shall pay to the System, in addition to all other payments | ||||||
17 | required under this Section and in accordance with guidelines | ||||||
18 | established by the System, the present value of the increase in | ||||||
19 | benefits resulting from the portion of the increase in salary | ||||||
20 | that is in excess of 6%. This present value shall be computed | ||||||
21 | by the System on the basis of the actuarial assumptions and | ||||||
22 | tables used in the most recent actuarial valuation of the | ||||||
23 | System that is available at the time of the computation. For | ||||||
24 | the purposes of this Section, change in employment under | ||||||
25 | Section 10-21.12 of the School Code shall constitute a change | ||||||
26 | in employer. The System may require the employer to provide any |
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1 | pertinent information or documentation.
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2 | Whenever it determines that a payment is or may be required | ||||||
3 | under this subsection, the System shall calculate the amount of | ||||||
4 | the payment and bill the employer for that amount. The bill | ||||||
5 | shall specify the calculations used to determine the amount | ||||||
6 | due. If the employer disputes the amount of the bill, it may, | ||||||
7 | within 30 days after receipt of the bill, apply to the System | ||||||
8 | in writing for a recalculation. The application must specify in | ||||||
9 | detail the grounds of the dispute and, if the employer asserts | ||||||
10 | that the calculation is subject to subsection (g) or (h) of | ||||||
11 | this Section, must include an affidavit setting forth and | ||||||
12 | attesting to all facts within the employer's knowledge that are | ||||||
13 | pertinent to the applicability of that subsection. Upon | ||||||
14 | receiving a timely application for recalculation, the System | ||||||
15 | shall review the application and, if appropriate, recalculate | ||||||
16 | the amount due.
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17 | The employer contributions required under this subsection | ||||||
18 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
19 | receipt of the bill. If the employer contributions are not paid | ||||||
20 | within 90 days after receipt of the bill, then interest will be | ||||||
21 | charged at a rate equal to the System's annual actuarially | ||||||
22 | assumed rate of return on investment compounded annually from | ||||||
23 | the 91st day after receipt of the bill. Payments must be | ||||||
24 | concluded within 3 years after the employer's receipt of the | ||||||
25 | bill.
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26 | (g) This subsection (g) applies only to payments made or |
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1 | salary increases given on or after June 1, 2005 but before July | ||||||
2 | 1, 2011. The changes made by Public Act 94-1057
this amendatory | ||||||
3 | Act of the 94th General Assembly shall not require the System | ||||||
4 | to refund any payments received before July 31, 2006
( the | ||||||
5 | effective date of Public Act 94-1057)
this amendatory Act . | ||||||
6 | When assessing payment for any amount due under subsection | ||||||
7 | (f), the System shall exclude salary increases paid to teachers | ||||||
8 | under contracts or collective bargaining agreements entered | ||||||
9 | into, amended, or renewed before June 1, 2005.
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10 | When assessing payment for any amount due under subsection | ||||||
11 | (f), the System shall exclude salary increases paid to a | ||||||
12 | teacher at a time when the teacher is 10 or more years from | ||||||
13 | retirement eligibility under Section 16-132 or 16-133.2.
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14 | When assessing payment for any amount due under subsection | ||||||
15 | (f), the System shall exclude salary increases resulting from | ||||||
16 | overload work, including summer school, when the school | ||||||
17 | district has certified to the System, and the System has | ||||||
18 | approved the certification, that (i) the overload work is for | ||||||
19 | the sole purpose of classroom instruction in excess of the | ||||||
20 | standard number of classes for a full-time teacher in a school | ||||||
21 | district during a school year and (ii) the salary increases are | ||||||
22 | equal to or less than the rate of pay for classroom instruction | ||||||
23 | computed on the teacher's current salary and work schedule.
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24 | When assessing payment for any amount due under subsection | ||||||
25 | (f), the System shall exclude a salary increase resulting from | ||||||
26 | a promotion (i) for which the employee is required to hold a |
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| |||||||
1 | certificate or supervisory endorsement issued by the State | ||||||
2 | Teacher Certification Board that is a different certification | ||||||
3 | or supervisory endorsement than is required for the teacher's | ||||||
4 | previous position and (ii) to a position that has existed and | ||||||
5 | been filled by a member for no less than one complete academic | ||||||
6 | year and the salary increase from the promotion is an increase | ||||||
7 | that results in an amount no greater than the lesser of the | ||||||
8 | average salary paid for other similar positions in the district | ||||||
9 | requiring the same certification or the amount stipulated in | ||||||
10 | the collective bargaining agreement for a similar position | ||||||
11 | requiring the same certification.
| ||||||
12 | When assessing payment for any amount due under subsection | ||||||
13 | (f), the System shall exclude any payment to the teacher from | ||||||
14 | the State of Illinois or the State Board of Education over | ||||||
15 | which the employer does not have discretion, notwithstanding | ||||||
16 | that the payment is included in the computation of final | ||||||
17 | average salary.
| ||||||
18 | (h) When assessing payment for any amount due under | ||||||
19 | subsection (f), the System shall exclude any salary increase | ||||||
20 | described in subsection (g) of this Section given on or after | ||||||
21 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
22 | collective bargaining agreement entered into, amended, or | ||||||
23 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
24 | Notwithstanding any other provision of this Section, any | ||||||
25 | payments made or salary increases given after June 30, 2014 | ||||||
26 | shall be used in assessing payment for any amount due under |
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| |||||||
1 | subsection (f) of this Section.
| ||||||
2 | (i) The System shall prepare a report and file copies of | ||||||
3 | the report with the Governor and the General Assembly by | ||||||
4 | January 1, 2007 that contains all of the following information: | ||||||
5 | (1) The number of recalculations required by the | ||||||
6 | changes made to this Section by Public Act 94-1057
this | ||||||
7 | amendatory Act of the 94th General Assembly for each | ||||||
8 | employer. | ||||||
9 | (2) The dollar amount by which each employer's | ||||||
10 | contribution to the System was changed due to | ||||||
11 | recalculations required by Public Act 94-1057
this | ||||||
12 | amendatory Act of the 94th General Assembly . | ||||||
13 | (3) The total amount the System received from each | ||||||
14 | employer as a result of the changes made to this Section by | ||||||
15 | Public Act 94-4. | ||||||
16 | (4) The increase in the required State contribution | ||||||
17 | resulting from the changes made to this Section by Public | ||||||
18 | Act 94-1057
this amendatory Act of the 94th General | ||||||
19 | Assembly .
| ||||||
20 | (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | ||||||
21 | eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, eff. 7-31-06; | ||||||
22 | revised 8-3-06.)
|