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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 2-124 as follows:
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6 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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7 | Sec. 2-124. Contributions by State.
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8 | (a) The The State shall make contributions to the System by
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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.
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14 | (b) The Board shall determine the amount of State
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15 | contributions required for each fiscal year on the basis of the
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16 | actuarial tables and other assumptions adopted by the Board and | ||||||||||||||||||||||||
17 | the
prescribed rate of interest, using the formula in | ||||||||||||||||||||||||
18 | subsection (c).
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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
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1 | State fiscal year 2045. In making these determinations, the | ||||||
2 | required State
contribution shall be calculated each year as a | ||||||
3 | level percentage of payroll
over the years remaining to and | ||||||
4 | including fiscal year 2045 and shall be
determined under the | ||||||
5 | projected unit credit actuarial cost method.
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6 | For State fiscal years 1996 through 2005, the State | ||||||
7 | contribution to
the System, as a percentage of the applicable | ||||||
8 | employee payroll, shall be
increased in equal annual increments | ||||||
9 | so that by State fiscal year 2011, the
State is contributing at | ||||||
10 | the rate required under this Section.
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11 | Notwithstanding any other provision of this Article, the | ||||||
12 | total required State
contribution for State fiscal year 2006 is | ||||||
13 | $4,157,000.
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14 | Notwithstanding any other provision of this Article, the | ||||||
15 | total required State
contribution for State fiscal year 2007 is | ||||||
16 | $5,220,300.
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17 | For each of State fiscal years 2008 through 2010, the State | ||||||
18 | contribution to
the System, as a percentage of the applicable | ||||||
19 | employee payroll, shall be
increased in equal annual increments | ||||||
20 | from the required State contribution for State fiscal year | ||||||
21 | 2007, so that by State fiscal year 2011, the
State is | ||||||
22 | contributing at the rate otherwise required under this Section.
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23 | Beginning in State fiscal year 2046, the minimum State | ||||||
24 | contribution for
each fiscal year shall be the amount needed to | ||||||
25 | maintain the total assets of
the System at 90% of the total | ||||||
26 | actuarial liabilities of the System.
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1 | Amounts received by the System pursuant to Section 25 of | ||||||
2 | the Budget Stabilization Act in any fiscal year do not reduce | ||||||
3 | and do not constitute payment of any portion of the minimum | ||||||
4 | State contribution required under this Article in that fiscal | ||||||
5 | year. Such amounts shall not reduce, and shall not be included | ||||||
6 | in the calculation of, the required State contributions under | ||||||
7 | this Article in any future year until the System has reached a | ||||||
8 | funding ratio of at least 90%. A reference in this Article to | ||||||
9 | the "required State contribution" or any substantially similar | ||||||
10 | term does not include or apply to any amounts payable to the | ||||||
11 | System under Section 25 of the Budget Stabilization Act.
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12 | Notwithstanding any other provision of this Section, the | ||||||
13 | required State
contribution for State fiscal year 2005 and for | ||||||
14 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
15 | under this Section and
certified under Section 2-134, shall not | ||||||
16 | exceed an amount equal to (i) the
amount of the required State | ||||||
17 | contribution that would have been calculated under
this Section | ||||||
18 | for that fiscal year if the System had not received any | ||||||
19 | payments
under subsection (d) of Section 7.2 of the General | ||||||
20 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
21 | total debt service payments for that fiscal
year on the bonds | ||||||
22 | issued for the purposes of that Section 7.2, as determined
and | ||||||
23 | certified by the Comptroller, that is the same as the System's | ||||||
24 | portion of
the total moneys distributed under subsection (d) of | ||||||
25 | Section 7.2 of the General
Obligation Bond Act. In determining | ||||||
26 | this maximum for State fiscal years 2008 through 2010, however, |
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1 | the amount referred to in item (i) shall be increased, as a | ||||||
2 | percentage of the applicable employee payroll, in equal | ||||||
3 | increments calculated from the sum of the required State | ||||||
4 | contribution for State fiscal year 2007 plus the applicable | ||||||
5 | portion of the State's total debt service payments for fiscal | ||||||
6 | year 2007 on the bonds issued for the purposes of Section 7.2 | ||||||
7 | of the General
Obligation Bond Act, so that, by State fiscal | ||||||
8 | year 2011, the
State is contributing at the rate otherwise | ||||||
9 | required under this Section.
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10 | (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | ||||||
11 | eff. 6-6-06.)
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