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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 | Sections 1-103.3, 2-124, 2-134, 14-131, 14-135.08, 15-155, | ||||||||||||||||||||||||||||||||||||||||||
6 | 15-165, 16-158, 18-131, and 18-140 as follows:
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7 | (40 ILCS 5/1-103.3)
| ||||||||||||||||||||||||||||||||||||||||||
8 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||||||||||||||||||||||||||||||||||||||
9 | standard.
| ||||||||||||||||||||||||||||||||||||||||||
10 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||||||||||||||||||||||||||||||||||||||
11 | of 1994 that change the method of
calculating, certifying, and | ||||||||||||||||||||||||||||||||||||||||||
12 | paying the required State contributions to the
retirement | ||||||||||||||||||||||||||||||||||||||||||
13 | systems established under Articles 2, 14, 15, 16, and 18 shall
| ||||||||||||||||||||||||||||||||||||||||||
14 | first apply to the State contributions required for State | ||||||||||||||||||||||||||||||||||||||||||
15 | fiscal year 1996.
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16 | (b) (Blank) The General Assembly declares that a funding | ||||||||||||||||||||||||||||||||||||||||||
17 | ratio (the ratio of a
retirement system's total assets to its | ||||||||||||||||||||||||||||||||||||||||||
18 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||||||||||||||||||||||||||||||||||||||
19 | State-funded retirement systems in Illinois, and it
finds that | ||||||||||||||||||||||||||||||||||||||||||
20 | a funding ratio of 90% is now the generally-recognized norm
| ||||||||||||||||||||||||||||||||||||||||||
21 | throughout the nation for public employee retirement systems | ||||||||||||||||||||||||||||||||||||||||||
22 | that are
considered to be financially secure and funded in an | ||||||||||||||||||||||||||||||||||||||||||
23 | appropriate and
responsible manner .
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| |||||||
| |||||||
1 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
2 | Government Forecasting and Accountability, in consultation | ||||||
3 | with the affected retirement systems and the
Governor's Office | ||||||
4 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
5 | consider and determine whether the funding goals 90% funding | ||||||
6 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
7 | continue subsection (b) continues to represent an appropriate | ||||||
8 | funding goals goal for
those State-funded retirement systems in | ||||||
9 | Illinois , and it shall report its findings
and recommendations | ||||||
10 | on this subject to the Governor and the General Assembly.
| ||||||
11 | (Source: P.A. 93-1067, eff. 1-15-05.)
| ||||||
12 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
13 | Sec. 2-124. Contributions by State.
| ||||||
14 | (a) The State shall make contributions to the System by
| ||||||
15 | appropriations of amounts which, together with the | ||||||
16 | contributions of
participants, interest earned on investments, | ||||||
17 | and other income
will meet the cost of maintaining and | ||||||
18 | administering the System on a 100% 90%
funded basis in | ||||||
19 | accordance with actuarial recommendations by the end of State | ||||||
20 | fiscal year 2043 .
| ||||||
21 | (b) The Board shall determine the amount of State
| ||||||
22 | contributions required for each fiscal year on the basis of the
| ||||||
23 | actuarial tables and other assumptions adopted by the Board and | ||||||
24 | the
prescribed rate of interest, using the formula in | ||||||
25 | subsection (c).
|
| |||||||
| |||||||
1 | (c) For State fiscal years 2014 through 2043, the minimum | ||||||
2 | contribution
to the System to be made by the State for each | ||||||
3 | fiscal year shall be an amount
determined by the System to be | ||||||
4 | equal to the sum of (1) the State's portion of the projected | ||||||
5 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
6 | to bring the total assets of the
System up to 100% of the total | ||||||
7 | actuarial liabilities of the System by the end of
State fiscal | ||||||
8 | year 2043. In making these determinations, the required State
| ||||||
9 | contribution shall be calculated each year as a level | ||||||
10 | percentage of payroll
over the years remaining to and including | ||||||
11 | fiscal year 2043 and shall be
determined under the projected | ||||||
12 | unit credit actuarial cost method. | ||||||
13 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
14 | minimum contribution
to the System to be made by the State for | ||||||
15 | each fiscal year shall be an amount
determined by the System to | ||||||
16 | be sufficient to bring the total assets of the
System up to 90% | ||||||
17 | of 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 |
| |||||||
| |||||||
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 2009, 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 | Notwithstanding any other provision of this Article, the | ||||||
15 | total required State contribution for State fiscal year 2010 is | ||||||
16 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
17 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
18 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
19 | expenses determined by the System's share of total bond | ||||||
20 | proceeds, (ii) any amounts received from the General Revenue | ||||||
21 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
22 | proceeds due to the issuance of discounted bonds, if | ||||||
23 | applicable. | ||||||
24 | Notwithstanding any other provision of this Article, the
| ||||||
25 | total required State contribution for State fiscal year 2011 is
| ||||||
26 | the amount recertified by the System on or before April 1, 2011 |
| |||||||
| |||||||
1 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
2 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
3 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
4 | bond sale
expenses determined by the System's share of total | ||||||
5 | bond
proceeds, (ii) any amounts received from the General | ||||||
6 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
7 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
8 | applicable. | ||||||
9 | Beginning in State fiscal year 2044, the minimum State | ||||||
10 | contribution for each fiscal year shall be the amount needed to | ||||||
11 | maintain the total assets of the System at 100% of the total | ||||||
12 | actuarial liabilities of the System. | ||||||
13 | Beginning in State fiscal year 2046, the minimum State | ||||||
14 | contribution for
each fiscal year shall be the amount needed to | ||||||
15 | maintain the total assets of
the System at 90% of the total | ||||||
16 | actuarial liabilities of the System.
| ||||||
17 | Amounts received by the System pursuant to Section 25 of | ||||||
18 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
19 | Finance Act in any fiscal year do not reduce and do not | ||||||
20 | constitute payment of any portion of the minimum State | ||||||
21 | contribution required under this Article in that fiscal year. | ||||||
22 | Such amounts shall not reduce, and shall not be included in the | ||||||
23 | calculation of, the required State contributions under this | ||||||
24 | Article in any future year until the System has reached a | ||||||
25 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
26 | to the "required State contribution" or any substantially |
| |||||||
| |||||||
1 | similar term does not include or apply to any amounts payable | ||||||
2 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
3 | Notwithstanding any other provision of this Section, the | ||||||
4 | required State
contribution for State fiscal year 2005 and for | ||||||
5 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
6 | under this Section and
certified under Section 2-134, shall not | ||||||
7 | exceed an amount equal to (i) the
amount of the required State | ||||||
8 | contribution that would have been calculated under
this Section | ||||||
9 | for that fiscal year if the System had not received any | ||||||
10 | payments
under subsection (d) of Section 7.2 of the General | ||||||
11 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
12 | total debt service payments for that fiscal
year on the bonds | ||||||
13 | issued in fiscal year 2003 for the purposes of that Section | ||||||
14 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
15 | the same as the System's portion of
the total moneys | ||||||
16 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
17 | Obligation Bond Act. In determining this maximum for State | ||||||
18 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
19 | in item (i) shall be increased, as a percentage of the | ||||||
20 | applicable employee payroll, in equal increments calculated | ||||||
21 | from the sum of the required State contribution for State | ||||||
22 | fiscal year 2007 plus the applicable portion of the State's | ||||||
23 | total debt service payments for fiscal year 2007 on the bonds | ||||||
24 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
25 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
26 | 2011, the
State is contributing at the rate otherwise required |
| |||||||
| |||||||
1 | under this Section.
| ||||||
2 | (d) For purposes of determining the required State | ||||||
3 | contribution to the System, the value of the System's assets | ||||||
4 | shall be equal to the actuarial value of the System's assets, | ||||||
5 | which shall be calculated as follows: | ||||||
6 | As of June 30, 2008, the actuarial value of the System's | ||||||
7 | assets shall be equal to the market value of the assets as of | ||||||
8 | that date. In determining the actuarial value of the System's | ||||||
9 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
10 | gains or losses from investment return incurred in a fiscal | ||||||
11 | year shall be recognized in equal annual amounts over the | ||||||
12 | 5-year period following that fiscal year. | ||||||
13 | (e) For purposes of determining the required State | ||||||
14 | contribution to the system for a particular year, the actuarial | ||||||
15 | value of assets shall be assumed to earn a rate of return equal | ||||||
16 | to the system's actuarially assumed rate of return. | ||||||
17 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
18 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
19 | 7-13-12.)
| ||||||
20 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
21 | Sec. 2-134. To certify required State contributions and | ||||||
22 | submit vouchers.
| ||||||
23 | (a) The Board shall certify to the Governor on or before | ||||||
24 | December 15 of each
year until December 15, 2011 the amount of | ||||||
25 | the required State contribution to the System for the next
|
| |||||||
| |||||||
1 | fiscal year and shall specifically identify the System's | ||||||
2 | projected State normal cost for that fiscal year. The | ||||||
3 | certification shall include a copy of the actuarial
| ||||||
4 | recommendations upon which it is based and shall specifically | ||||||
5 | identify the System's projected State normal cost for that | ||||||
6 | fiscal year.
| ||||||
7 | On or before November 1 of each year, beginning November 1, | ||||||
8 | 2012, the Board shall submit to the State Actuary, the | ||||||
9 | Governor, and the General Assembly a proposed certification of | ||||||
10 | the amount of the required State contribution to the System for | ||||||
11 | the next fiscal year, along with all of the actuarial | ||||||
12 | assumptions, calculations, and data upon which that proposed | ||||||
13 | certification is based. On or before January 1 of each year | ||||||
14 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
15 | preliminary report concerning the proposed certification and | ||||||
16 | identifying, if necessary, recommended changes in actuarial | ||||||
17 | assumptions that the Board must consider before finalizing its | ||||||
18 | certification of the required State contributions. On or before | ||||||
19 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
20 | shall certify to the Governor and the General Assembly the | ||||||
21 | amount of the required State contribution for the next fiscal | ||||||
22 | year. The Board's certification must incorporate and follow | ||||||
23 | note any deviations from the State Actuary's recommended | ||||||
24 | changes , the reason or reasons for not following the State | ||||||
25 | Actuary's recommended changes, and the fiscal impact of not | ||||||
26 | following the State Actuary's recommended changes on the |
| |||||||
| |||||||
1 | required State contribution . | ||||||
2 | On or before May 1, 2004, the Board shall recalculate and | ||||||
3 | recertify to
the Governor the amount of the required State | ||||||
4 | contribution to the System for
State fiscal year 2005, taking | ||||||
5 | into account the amounts appropriated to and
received by the | ||||||
6 | System under subsection (d) of Section 7.2 of the General
| ||||||
7 | Obligation Bond Act.
| ||||||
8 | On or before July 1, 2005, the Board shall recalculate and | ||||||
9 | recertify
to the Governor the amount of the required State
| ||||||
10 | contribution to the System for State fiscal year 2006, taking | ||||||
11 | into account the changes in required State contributions made | ||||||
12 | by this amendatory Act of the 94th General Assembly.
| ||||||
13 | On or before April 1, 2011, the Board shall recalculate and | ||||||
14 | recertify to the Governor the amount of the required State | ||||||
15 | contribution to the System for State fiscal year 2011, applying | ||||||
16 | the changes made by Public Act 96-889 to the System's assets | ||||||
17 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
18 | was approved on that date. | ||||||
19 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
20 | possible after the
15th day of each month the Board shall | ||||||
21 | submit vouchers for payment of State
contributions to the | ||||||
22 | System, in a total monthly amount of one-twelfth of the
| ||||||
23 | required annual State contribution certified under subsection | ||||||
24 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
25 | General Assembly through June 30, 2004, the Board shall not
| ||||||
26 | submit vouchers for the remainder of fiscal year 2004 in excess |
| |||||||
| |||||||
1 | 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 (d) 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. If in | ||||||
7 | any month
the amount remaining unexpended from all other | ||||||
8 | appropriations to the System for
the applicable fiscal year | ||||||
9 | (including the appropriations to the System under
Section 8.12 | ||||||
10 | of the State Finance Act and Section 1 of the State Pension | ||||||
11 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
12 | lawfully vouchered under
this Section, the difference shall be | ||||||
13 | paid from the General Revenue Fund under
the continuing | ||||||
14 | appropriation authority provided in Section 1.1 of the State
| ||||||
15 | Pension Funds Continuing Appropriation Act.
| ||||||
16 | (c) The full amount of any annual appropriation for the | ||||||
17 | System for
State fiscal year 1995 shall be transferred and made | ||||||
18 | available to the System
at the beginning of that fiscal year at | ||||||
19 | the request of the Board.
Any excess funds remaining at the end | ||||||
20 | of any fiscal year from appropriations
shall be retained by the | ||||||
21 | System as a general reserve to meet the System's
accrued | ||||||
22 | liabilities.
| ||||||
23 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
24 | 97-694, eff. 6-18-12.)
| ||||||
25 | (40 ILCS 5/14-131)
|
| |||||||
| |||||||
1 | Sec. 14-131. Contributions by State.
| ||||||
2 | (a) The State shall make contributions to the System by | ||||||
3 | appropriations of
amounts which, together with other employer | ||||||
4 | contributions from trust, federal,
and other funds, employee | ||||||
5 | contributions, investment income, and other income,
will be | ||||||
6 | sufficient to meet the cost of maintaining and administering | ||||||
7 | the System
on a 100% 90% funded basis in accordance with | ||||||
8 | actuarial recommendations by the end of State fiscal year 2043 .
| ||||||
9 | For the purposes of this Section and Section 14-135.08, | ||||||
10 | references to State
contributions refer only to employer | ||||||
11 | contributions and do not include employee
contributions that | ||||||
12 | are picked up or otherwise paid by the State or a
department on | ||||||
13 | behalf of the employee.
| ||||||
14 | (b) The Board shall determine the total 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, | ||||||
17 | using the formula in subsection (e).
| ||||||
18 | The Board shall also determine a State contribution rate | ||||||
19 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
20 | based on the total required State
contribution for that fiscal | ||||||
21 | year (less the amount received by the System from
| ||||||
22 | appropriations under Section 8.12 of the State Finance Act and | ||||||
23 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
24 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
25 | immediately preceding the applicable November 15
certification | ||||||
26 | deadline), the estimated payroll (including all forms of
|
| |||||||
| |||||||
1 | compensation) for personal services rendered by eligible | ||||||
2 | employees, and the
recommendations of the actuary.
| ||||||
3 | For the purposes of this Section and Section 14.1 of the | ||||||
4 | State Finance Act,
the term "eligible employees" includes | ||||||
5 | employees who participate in the System,
persons who may elect | ||||||
6 | to participate in the System but have not so elected,
persons | ||||||
7 | who are serving a qualifying period that is required for | ||||||
8 | participation,
and annuitants employed by a department as | ||||||
9 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
10 | (c) Contributions shall be made by the several departments | ||||||
11 | for each pay
period by warrants drawn by the State Comptroller | ||||||
12 | against their respective
funds or appropriations based upon | ||||||
13 | vouchers stating the amount to be so
contributed. These amounts | ||||||
14 | shall be based on the full rate certified by the
Board under | ||||||
15 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
16 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
17 | payment of the final payroll from fiscal year 2004
| ||||||
18 | appropriations, the several departments shall not make | ||||||
19 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
20 | instead make payments
as required under subsection (a-1) of | ||||||
21 | Section 14.1 of the State Finance Act.
The several departments | ||||||
22 | shall resume those contributions at the commencement of
fiscal | ||||||
23 | year 2005.
| ||||||
24 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
25 | fiscal years 2010, 2012, and 2013 only, contributions by the | ||||||
26 | several departments are not required to be made for General |
| |||||||
| |||||||
1 | Revenue Funds payrolls processed by the Comptroller. Payrolls | ||||||
2 | paid by the several departments from all other State funds must | ||||||
3 | continue to be processed pursuant to subsection (c) of this | ||||||
4 | Section. | ||||||
5 | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | ||||||
6 | or as soon as possible after the 15th day of each month, the | ||||||
7 | Board shall submit vouchers for payment of State contributions | ||||||
8 | to the System, in a total monthly amount of one-twelfth of the | ||||||
9 | fiscal year General Revenue Fund contribution as certified by | ||||||
10 | the System pursuant to Section 14-135.08 of the Illinois | ||||||
11 | Pension Code. | ||||||
12 | (d) If an employee is paid from trust funds or federal | ||||||
13 | funds, the
department or other employer shall pay employer | ||||||
14 | contributions from those funds
to the System at the certified | ||||||
15 | rate, unless the terms of the trust or the
federal-State | ||||||
16 | agreement preclude the use of the funds for that purpose, in
| ||||||
17 | which case the required employer contributions shall be paid by | ||||||
18 | the State.
From the effective date of this amendatory
Act of | ||||||
19 | the 93rd General Assembly through the payment of the final
| ||||||
20 | payroll from fiscal year 2004 appropriations, the department or | ||||||
21 | other
employer shall not pay contributions for the remainder of | ||||||
22 | fiscal year
2004 but shall instead make payments as required | ||||||
23 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
24 | Act. The department or other employer shall
resume payment of
| ||||||
25 | contributions at the commencement of fiscal year 2005.
| ||||||
26 | (e) For State fiscal years 2014 through 2043, the minimum |
| |||||||
| |||||||
1 | contribution
to the System to be made by the State for each | ||||||
2 | fiscal year shall be an amount
determined by the System to be | ||||||
3 | equal to the sum of (1) the State's portion of the projected | ||||||
4 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
5 | to bring the total assets of the
System up to 100% of the total | ||||||
6 | actuarial liabilities of the System by the end of
State fiscal | ||||||
7 | year 2043. In making these determinations, the required State
| ||||||
8 | contribution shall be calculated each year as a level | ||||||
9 | percentage of payroll
over the years remaining to and including | ||||||
10 | fiscal year 2043 and shall be
determined under the projected | ||||||
11 | unit credit actuarial cost method. | ||||||
12 | For State fiscal years 2012 and 2013 through 2045 , the minimum | ||||||
13 | contribution
to the System to be made by the State for each | ||||||
14 | fiscal year shall be an amount
determined by the System to be | ||||||
15 | sufficient to bring the total assets of the
System up to 90% of | ||||||
16 | the total actuarial liabilities of the System by the end
of | ||||||
17 | State fiscal year 2045. In making these determinations, the | ||||||
18 | required State
contribution shall be calculated each year as a | ||||||
19 | level percentage of payroll
over the years remaining to and | ||||||
20 | including fiscal year 2045 and shall be
determined under the | ||||||
21 | projected unit credit actuarial cost method.
| ||||||
22 | For State fiscal years 1996 through 2005, the State | ||||||
23 | contribution to
the System, as a percentage of the applicable | ||||||
24 | employee payroll, shall be
increased in equal annual increments | ||||||
25 | so that by State fiscal year 2011, the
State is contributing at | ||||||
26 | the rate required under this Section; except that
(i) for State |
| |||||||
| |||||||
1 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
2 | law of this State, the certified percentage of the applicable | ||||||
3 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
4 | creditable service under Section
14-110 and 6.500% for all | ||||||
5 | other employees, notwithstanding any contrary
certification | ||||||
6 | made under Section 14-135.08 before the effective date of this
| ||||||
7 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
8 | State fiscal years, the State contribution to
the System shall | ||||||
9 | not be less than the following indicated percentages of the
| ||||||
10 | applicable employee payroll, even if the indicated percentage | ||||||
11 | will produce a
State contribution in excess of the amount | ||||||
12 | otherwise required under this
subsection and subsection (a):
| ||||||
13 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
14 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State
contribution to the System for State | ||||||
17 | fiscal year 2006 is $203,783,900.
| ||||||
18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution to the System for State | ||||||
20 | fiscal year 2007 is $344,164,400.
| ||||||
21 | For each of State fiscal years 2008 through 2009, the State | ||||||
22 | contribution to
the System, as a percentage of the applicable | ||||||
23 | employee payroll, shall be
increased in equal annual increments | ||||||
24 | from the required State contribution for State fiscal year | ||||||
25 | 2007, so that by State fiscal year 2011, the
State is | ||||||
26 | contributing at the rate otherwise required under this Section.
|
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State General Revenue Fund contribution for | ||||||
3 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
4 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
5 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
6 | pro rata share of bond sale expenses determined by the System's | ||||||
7 | share of total bond proceeds, (ii) any amounts received from | ||||||
8 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
9 | reduction in bond proceeds due to the issuance of discounted | ||||||
10 | bonds, if applicable. | ||||||
11 | Notwithstanding any other provision of this Article, the
| ||||||
12 | total required State General Revenue Fund contribution for
| ||||||
13 | State fiscal year 2011 is the amount recertified by the System | ||||||
14 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
15 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
16 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
17 | Act, less (i) the
pro rata share of bond sale expenses | ||||||
18 | determined by the System's
share of total bond proceeds, (ii) | ||||||
19 | any amounts received from
the General Revenue Fund in fiscal | ||||||
20 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
21 | issuance of discounted
bonds, if applicable. | ||||||
22 | Beginning in State fiscal year 2044, the minimum State | ||||||
23 | contribution for each fiscal year shall be the amount needed to | ||||||
24 | maintain the total assets of the System at 100% of the total | ||||||
25 | actuarial liabilities of the System. | ||||||
26 | Beginning in State fiscal year 2046, the minimum State |
| |||||||
| |||||||
1 | contribution for
each fiscal year shall be the amount needed to | ||||||
2 | maintain the total assets of
the System at 90% of the total | ||||||
3 | actuarial liabilities of the System.
| ||||||
4 | Amounts received by the System pursuant to Section 25 of | ||||||
5 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
6 | Finance Act in any fiscal year do not reduce and do not | ||||||
7 | constitute payment of any portion of the minimum State | ||||||
8 | contribution required under this Article in that fiscal year. | ||||||
9 | Such amounts shall not reduce, and shall not be included in the | ||||||
10 | calculation of, the required State contributions under this | ||||||
11 | Article in any future year until the System has reached a | ||||||
12 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
13 | to the "required State contribution" or any substantially | ||||||
14 | similar term does not include or apply to any amounts payable | ||||||
15 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
16 | Notwithstanding any other provision of this Section, the | ||||||
17 | required State
contribution for State fiscal year 2005 and for | ||||||
18 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
19 | under this Section and
certified under Section 14-135.08, shall | ||||||
20 | not exceed an amount equal to (i) the
amount of the required | ||||||
21 | State contribution that would have been calculated under
this | ||||||
22 | Section for that fiscal year if the System had not received any | ||||||
23 | payments
under subsection (d) of Section 7.2 of the General | ||||||
24 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
25 | total debt service payments for that fiscal
year on the bonds | ||||||
26 | issued in fiscal year 2003 for the purposes of that Section |
| |||||||
| |||||||
1 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
2 | the same as the System's portion of
the total moneys | ||||||
3 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
4 | Obligation Bond Act. In determining this maximum for State | ||||||
5 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
6 | in item (i) shall be increased, as a percentage of the | ||||||
7 | applicable employee payroll, in equal increments calculated | ||||||
8 | from the sum of the required State contribution for State | ||||||
9 | fiscal year 2007 plus the applicable portion of the State's | ||||||
10 | total debt service payments for fiscal year 2007 on the bonds | ||||||
11 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
12 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
13 | 2011, the
State is contributing at the rate otherwise required | ||||||
14 | under this Section.
| ||||||
15 | (f) After the submission of all payments for eligible | ||||||
16 | employees
from personal services line items in fiscal year 2004 | ||||||
17 | have been made,
the Comptroller shall provide to the System a | ||||||
18 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
19 | for personal services that would
have been covered by payments | ||||||
20 | to the System under this Section if the
provisions of this | ||||||
21 | amendatory Act of the 93rd General Assembly had not been
| ||||||
22 | enacted. Upon
receipt of the certification, the System shall | ||||||
23 | determine the amount
due to the System based on the full rate | ||||||
24 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
25 | 2004 in order to meet the State's
obligation under this | ||||||
26 | Section. The System shall compare this amount
due to the amount |
| |||||||
| |||||||
1 | received by the System in fiscal year 2004 through
payments | ||||||
2 | under this Section and under Section 6z-61 of the State Finance | ||||||
3 | Act.
If the amount
due is more than the amount received, the | ||||||
4 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
5 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
6 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
7 | Continuing Appropriation Act. If the amount due is less than | ||||||
8 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
9 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
10 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
11 | the Pension Contribution Fund as soon as practicable
after the | ||||||
12 | certification.
| ||||||
13 | (g) For purposes of determining the required State | ||||||
14 | contribution to the System, the value of the System's assets | ||||||
15 | shall be equal to the actuarial value of the System's assets, | ||||||
16 | which shall be calculated as follows: | ||||||
17 | As of June 30, 2008, the actuarial value of the System's | ||||||
18 | assets shall be equal to the market value of the assets as of | ||||||
19 | that date. In determining the actuarial value of the System's | ||||||
20 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
21 | gains or losses from investment return incurred in a fiscal | ||||||
22 | year shall be recognized in equal annual amounts over the | ||||||
23 | 5-year period following that fiscal year. | ||||||
24 | (h) For purposes of determining the required State | ||||||
25 | contribution to the System for a particular year, the actuarial | ||||||
26 | value of assets shall be assumed to earn a rate of return equal |
| |||||||
| |||||||
1 | to the System's actuarially assumed rate of return. | ||||||
2 | (i) After the submission of all payments for eligible | ||||||
3 | employees from personal services line items paid from the | ||||||
4 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
5 | Comptroller shall provide to the System a certification of the | ||||||
6 | sum of all fiscal year 2010 expenditures for personal services | ||||||
7 | that would have been covered by payments to the System under | ||||||
8 | this Section if the provisions of this amendatory Act of the | ||||||
9 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
10 | certification, the System shall determine the amount due to the | ||||||
11 | System based on the full rate certified by the Board under | ||||||
12 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
13 | State's obligation under this Section. The System shall compare | ||||||
14 | this amount due to the amount received by the System in fiscal | ||||||
15 | year 2010 through payments under this Section. If the amount | ||||||
16 | due is more than the amount received, the difference shall be | ||||||
17 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
18 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
19 | under Section 1.2 of the State Pension Funds Continuing | ||||||
20 | Appropriation Act. If the amount due is less than the amount | ||||||
21 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
22 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
23 | 2010 Overpayment shall be repaid by the System to the General | ||||||
24 | Revenue Fund as soon as practicable after the certification. | ||||||
25 | (j) After the submission of all payments for eligible | ||||||
26 | employees from personal services line items paid from the |
| |||||||
| |||||||
1 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
2 | Comptroller shall provide to the System a certification of the | ||||||
3 | sum of all fiscal year 2011 expenditures for personal services | ||||||
4 | that would have been covered by payments to the System under | ||||||
5 | this Section if the provisions of this amendatory Act of the | ||||||
6 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
7 | certification, the System shall determine the amount due to the | ||||||
8 | System based on the full rate certified by the Board under | ||||||
9 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
10 | State's obligation under this Section. The System shall compare | ||||||
11 | this amount due to the amount received by the System in fiscal | ||||||
12 | year 2011 through payments under this Section. If the amount | ||||||
13 | due is more than the amount received, the difference shall be | ||||||
14 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
15 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
16 | under Section 1.2 of the State Pension Funds Continuing | ||||||
17 | Appropriation Act. If the amount due is less than the amount | ||||||
18 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
19 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
20 | 2011 Overpayment shall be repaid by the System to the General | ||||||
21 | Revenue Fund as soon as practicable after the certification. | ||||||
22 | (k) For fiscal years 2012 and 2013 only, after the | ||||||
23 | submission of all payments for eligible employees from personal | ||||||
24 | services line items paid from the General Revenue Fund in the | ||||||
25 | fiscal year have been made, the Comptroller shall provide to | ||||||
26 | the System a certification of the sum of all expenditures in |
| |||||||
| |||||||
1 | the fiscal year for personal services. Upon receipt of the | ||||||
2 | certification, the System shall determine the amount due to the | ||||||
3 | System based on the full rate certified by the Board under | ||||||
4 | Section 14-135.08 for the fiscal year in order to meet the | ||||||
5 | State's obligation under this Section. The System shall compare | ||||||
6 | this amount due to the amount received by the System for the | ||||||
7 | fiscal year. If the amount due is more than the amount | ||||||
8 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
9 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
10 | Year Shortfall shall be satisfied under Section 1.2 of the | ||||||
11 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
12 | due is less than the amount received, the difference shall be | ||||||
13 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
14 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
15 | by the System to the General Revenue Fund as soon as | ||||||
16 | practicable after the certification. | ||||||
17 | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | ||||||
18 | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
19 | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | ||||||
20 | eff. 6-30-12.)
| ||||||
21 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
22 | Sec. 14-135.08. To certify required State contributions. | ||||||
23 | (a)
To certify to the Governor and to each department, on | ||||||
24 | or before
November 15 of each year until November 15, 2011, the | ||||||
25 | required rate for State contributions to the
System for the |
| |||||||
| |||||||
1 | next State fiscal year, as determined under subsection (b) of
| ||||||
2 | Section 14-131. The certification to the Governor under this | ||||||
3 | subsection (a) shall include a copy of the
actuarial | ||||||
4 | recommendations upon which the rate is based and shall | ||||||
5 | specifically identify the System's projected State normal cost | ||||||
6 | for that fiscal year.
| ||||||
7 | (a-5) On or before November 1 of each year, beginning | ||||||
8 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
9 | the Governor, and the General Assembly a proposed certification | ||||||
10 | of the amount of the required State contribution to the System | ||||||
11 | for the next fiscal year, along with all of the actuarial | ||||||
12 | assumptions, calculations, and data upon which that proposed | ||||||
13 | certification is based. On or before January 1 of each year | ||||||
14 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
15 | preliminary report concerning the proposed certification and | ||||||
16 | identifying, if necessary, recommended changes in actuarial | ||||||
17 | assumptions that the Board must consider before finalizing its | ||||||
18 | certification of the required State contributions. On or before | ||||||
19 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
20 | shall certify to the Governor and the General Assembly the | ||||||
21 | amount of the required State contribution for the next fiscal | ||||||
22 | year. The Board's certification must incorporate and follow | ||||||
23 | note any deviations from the State Actuary's recommended | ||||||
24 | changes , the reason or reasons for not following the State | ||||||
25 | Actuary's recommended changes, and the fiscal impact of not | ||||||
26 | following the State Actuary's recommended changes on the |
| |||||||
| |||||||
1 | required State contribution . | ||||||
2 | (b) The certifications under subsections (a) and (a-5) | ||||||
3 | shall include an additional amount necessary to pay all | ||||||
4 | principal of and interest on those general obligation bonds due | ||||||
5 | the next fiscal year authorized by Section 7.2(a) of the | ||||||
6 | General Obligation Bond Act and issued to provide the proceeds | ||||||
7 | deposited by the State with the System in July 2003, | ||||||
8 | representing deposits other than amounts reserved under | ||||||
9 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
10 | fiscal year 2005, the Board shall make a supplemental | ||||||
11 | certification of the additional amount necessary to pay all | ||||||
12 | principal of and interest on those general obligation bonds due | ||||||
13 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
14 | 7.2(a) of the General Obligation Bond Act and issued to provide | ||||||
15 | the proceeds deposited by the State with the System in July | ||||||
16 | 2003, representing deposits other than amounts reserved under | ||||||
17 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
18 | practical after the effective date of this amendatory Act of | ||||||
19 | the 93rd General Assembly.
| ||||||
20 | On or before May 1, 2004, the Board shall recalculate and | ||||||
21 | recertify
to the Governor and to each department the amount of | ||||||
22 | the required State
contribution to the System and the required | ||||||
23 | rates for State contributions
to the System for State fiscal | ||||||
24 | year 2005, taking into account the amounts
appropriated to and | ||||||
25 | received by the System under subsection (d) of Section
7.2 of | ||||||
26 | the General Obligation Bond Act.
|
| |||||||
| |||||||
1 | On or before July 1, 2005, the Board shall recalculate and | ||||||
2 | recertify
to the Governor and to each department the amount of | ||||||
3 | the required State
contribution to the System and the required | ||||||
4 | rates for State contributions
to the System for State fiscal | ||||||
5 | year 2006, taking into account the changes in required State | ||||||
6 | contributions made by this amendatory Act of the 94th General | ||||||
7 | Assembly.
| ||||||
8 | On or before April 1, 2011, the Board shall recalculate and | ||||||
9 | recertify to the Governor and to each department the amount of | ||||||
10 | the required State contribution to the System for State fiscal | ||||||
11 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
12 | the System's assets and liabilities as of June 30, 2009 as | ||||||
13 | though Public Act 96-889 was approved on that date. | ||||||
14 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
15 | 97-694, eff. 6-18-12.)
| ||||||
16 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
17 | Sec. 15-155. Employer contributions.
| ||||||
18 | (a) The State of Illinois shall make contributions by | ||||||
19 | appropriations of
amounts which, together with the other | ||||||
20 | employer contributions from trust,
federal, and other funds, | ||||||
21 | employee contributions, income from investments,
and other | ||||||
22 | income of this System, will be sufficient to meet the cost of
| ||||||
23 | maintaining and administering the System on a 100% 90% funded | ||||||
24 | basis in accordance
with actuarial recommendations by the end | ||||||
25 | of State fiscal year 2043 .
|
| |||||||
| |||||||
1 | The Board shall determine the amount of State contributions | ||||||
2 | required for
each fiscal year on the basis of the actuarial | ||||||
3 | tables and other assumptions
adopted by the Board and the | ||||||
4 | recommendations of the actuary, using the formula
in subsection | ||||||
5 | (a-1).
| ||||||
6 | (a-1) For State fiscal years 2014 through 2043, the minimum | ||||||
7 | contribution
to the System to be made by the State for each | ||||||
8 | fiscal year shall be an amount
determined by the System to be | ||||||
9 | equal to the sum of (1) the State's portion of the projected | ||||||
10 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
11 | to bring the total assets of the
System up to 100% of the total | ||||||
12 | actuarial liabilities of the System by the end of
State fiscal | ||||||
13 | year 2043. In making these determinations, the required State
| ||||||
14 | contribution shall be calculated each year as a level | ||||||
15 | percentage of payroll
over the years remaining to and including | ||||||
16 | fiscal year 2043 and shall be
determined under the projected | ||||||
17 | unit credit actuarial cost method. | ||||||
18 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
19 | minimum contribution
to the System to be made by the State for | ||||||
20 | each fiscal year shall be an amount
determined by the System to | ||||||
21 | be sufficient to bring the total assets of the
System up to 90% | ||||||
22 | of the total actuarial liabilities of the System by the end of
| ||||||
23 | State fiscal year 2045. In making these determinations, the | ||||||
24 | required State
contribution shall be calculated each year as a | ||||||
25 | level percentage of payroll
over the years remaining to and | ||||||
26 | including fiscal year 2045 and shall be
determined under the |
| |||||||
| |||||||
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 2009, 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 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State contribution for State fiscal year 2010 is | ||||||
21 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
22 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
23 | 7.2 of the General Obligation Bond Act, less (i) the pro rata | ||||||
24 | share of bond sale expenses determined by the System's share of | ||||||
25 | total bond proceeds, (ii) any amounts received from the General | ||||||
26 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
| |||||||
| |||||||
1 | proceeds due to the issuance of discounted bonds, if | ||||||
2 | applicable. | ||||||
3 | Notwithstanding any other provision of this Article, the
| ||||||
4 | total required State contribution for State fiscal year 2011 is
| ||||||
5 | the amount recertified by the System on or before April 1, 2011 | ||||||
6 | pursuant to Section 15-165 and shall be made from the State | ||||||
7 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
8 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
9 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
10 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
11 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
12 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
13 | discounted bonds, if
applicable. | ||||||
14 | For State fiscal year 2044 and thereafter, the minimum | ||||||
15 | State contribution for each fiscal year shall be the amount | ||||||
16 | needed to maintain the total assets of the System at 100% of | ||||||
17 | the total actuarial liabilities of the System. | ||||||
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 25 of | ||||||
23 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
24 | Finance Act in any fiscal year do not reduce and do not | ||||||
25 | constitute payment of any portion of the minimum State | ||||||
26 | contribution required under this Article in that fiscal year. |
| |||||||
| |||||||
1 | Such amounts shall not reduce, and shall not be included in the | ||||||
2 | calculation of, the required State contributions under this | ||||||
3 | Article in any future year until the System has reached a | ||||||
4 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
5 | to the "required State contribution" or any substantially | ||||||
6 | similar term does not include or apply to any amounts payable | ||||||
7 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
8 | Notwithstanding any other provision of this Section, the | ||||||
9 | required State
contribution for State fiscal year 2005 and for | ||||||
10 | fiscal year 2008 and each fiscal year thereafter , as
| ||||||
11 | calculated under this Section and
certified under Section | ||||||
12 | 15-165, shall not exceed an amount equal to (i) the
amount of | ||||||
13 | the required State contribution that would have been calculated | ||||||
14 | under
this Section for that fiscal year if the System had not | ||||||
15 | received any payments
under subsection (d) of Section 7.2 of | ||||||
16 | the General Obligation Bond Act, minus
(ii) the portion of the | ||||||
17 | State's total debt service payments for that fiscal
year on the | ||||||
18 | bonds issued in fiscal year 2003 for the purposes of that | ||||||
19 | Section 7.2, as determined
and certified by the Comptroller, | ||||||
20 | that is the same as the System's portion of
the total moneys | ||||||
21 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
22 | Obligation Bond Act. In determining this maximum for State | ||||||
23 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
24 | in item (i) shall be increased, as a percentage of the | ||||||
25 | applicable employee payroll, in equal increments calculated | ||||||
26 | from the sum of the required State contribution for State |
| |||||||
| |||||||
1 | fiscal year 2007 plus the applicable portion of the State's | ||||||
2 | total debt service payments for fiscal year 2007 on the bonds | ||||||
3 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
4 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
5 | 2011, the
State is contributing at the rate otherwise required | ||||||
6 | under this Section.
| ||||||
7 | (b) If an employee is paid from trust or federal funds, the | ||||||
8 | employer
shall pay to the Board contributions from those funds | ||||||
9 | which are
sufficient to cover the accruing normal costs on | ||||||
10 | behalf of the employee.
However, universities having employees | ||||||
11 | who are compensated out of local
auxiliary funds, income funds, | ||||||
12 | or service enterprise funds are not required
to pay such | ||||||
13 | contributions on behalf of those employees. The local auxiliary
| ||||||
14 | funds, income funds, and service enterprise funds of | ||||||
15 | universities shall not be
considered trust funds for the | ||||||
16 | purpose of this Article, but funds of alumni
associations, | ||||||
17 | foundations, and athletic associations which are affiliated | ||||||
18 | with
the universities included as employers under this Article | ||||||
19 | and other employers
which do not receive State appropriations | ||||||
20 | are considered to be trust funds for
the purpose of this | ||||||
21 | Article.
| ||||||
22 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
23 | each make
employer contributions to this System for their | ||||||
24 | respective firefighter
employees who participate in this | ||||||
25 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
26 | of contributions to be made by those municipalities shall
be |
| |||||||
| |||||||
1 | determined annually by the Board on the basis of the actuarial | ||||||
2 | assumptions
adopted by the Board and the recommendations of the | ||||||
3 | actuary, and shall be
expressed as a percentage of salary for | ||||||
4 | each such employee. The Board shall
certify the rate to the | ||||||
5 | affected municipalities as soon as may be practical.
The | ||||||
6 | employer contributions required under this subsection shall be | ||||||
7 | remitted by
the municipality to the System at the same time and | ||||||
8 | in the same manner as
employee contributions.
| ||||||
9 | (c) Through State fiscal year 1995: The total employer | ||||||
10 | contribution shall
be apportioned among the various funds of | ||||||
11 | the State and other employers,
whether trust, federal, or other | ||||||
12 | funds, in accordance with actuarial procedures
approved by the | ||||||
13 | Board. State of Illinois contributions for employers receiving
| ||||||
14 | State appropriations for personal services shall be payable | ||||||
15 | from appropriations
made to the employers or to the System. The | ||||||
16 | contributions for Class I
community colleges covering earnings | ||||||
17 | other than those paid from trust and
federal funds, shall be | ||||||
18 | payable solely from appropriations to the Illinois
Community | ||||||
19 | College Board or the System for employer contributions.
| ||||||
20 | (d) Beginning in State fiscal year 1996, the required State | ||||||
21 | contributions
to the System shall be appropriated directly to | ||||||
22 | the System and shall be payable
through vouchers issued in | ||||||
23 | accordance with subsection (c) of Section 15-165, except as | ||||||
24 | provided in subsection (g).
| ||||||
25 | (e) The State Comptroller shall draw warrants payable to | ||||||
26 | the System upon
proper certification by the System or by the |
| |||||||
| |||||||
1 | employer in accordance with the
appropriation laws and this | ||||||
2 | Code.
| ||||||
3 | (f) Normal costs under this Section means liability for
| ||||||
4 | pensions and other benefits which accrues to the System because | ||||||
5 | of the
credits earned for service rendered by the participants | ||||||
6 | during the
fiscal year and expenses of administering the | ||||||
7 | System, but shall not
include the principal of or any | ||||||
8 | redemption premium or interest on any bonds
issued by the Board | ||||||
9 | or any expenses incurred or deposits required in
connection | ||||||
10 | therewith.
| ||||||
11 | (g) If the amount of a participant's earnings for any | ||||||
12 | academic year used to determine the final rate of earnings, | ||||||
13 | determined on a full-time equivalent basis, exceeds the amount | ||||||
14 | of his or her earnings with the same employer for the previous | ||||||
15 | academic year, determined on a full-time equivalent basis, by | ||||||
16 | more than 6%, the participant's employer shall pay to the | ||||||
17 | System, in addition to all other payments required under this | ||||||
18 | Section and in accordance with guidelines established by the | ||||||
19 | System, the present value of the increase in benefits resulting | ||||||
20 | from the portion of the increase in earnings that is in excess | ||||||
21 | of 6%. This present value shall be computed by the System on | ||||||
22 | the basis of the actuarial assumptions and tables used in the | ||||||
23 | most recent actuarial valuation of the System that is available | ||||||
24 | at the time of the computation. The System may require the | ||||||
25 | employer to provide any pertinent information or | ||||||
26 | documentation. |
| |||||||
| |||||||
1 | Whenever it determines that a payment is or may be required | ||||||
2 | under this subsection (g), the System shall calculate the | ||||||
3 | amount of the payment and bill the employer for that amount. | ||||||
4 | The bill shall specify the calculations used to determine the | ||||||
5 | amount due. If the employer disputes the amount of the bill, it | ||||||
6 | may, within 30 days after receipt of the bill, apply to the | ||||||
7 | System in writing for a recalculation. The application must | ||||||
8 | specify in detail the grounds of the dispute and, if the | ||||||
9 | employer asserts that the calculation is subject to subsection | ||||||
10 | (h) or (i) of this Section, must include an affidavit setting | ||||||
11 | forth and attesting to all facts within the employer's | ||||||
12 | knowledge that are pertinent to the applicability of subsection | ||||||
13 | (h) or (i). Upon receiving a timely application for | ||||||
14 | recalculation, the System shall review the application and, if | ||||||
15 | appropriate, recalculate the amount due.
| ||||||
16 | The employer contributions required under this subsection | ||||||
17 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
18 | after receipt of the bill. If the employer contributions are | ||||||
19 | not paid within 90 days after receipt of the bill, then | ||||||
20 | interest will be charged at a rate equal to the System's annual | ||||||
21 | actuarially assumed rate of return on investment compounded | ||||||
22 | annually from the 91st day after receipt of the bill. Payments | ||||||
23 | must be concluded within 3 years after the employer's receipt | ||||||
24 | of the bill. | ||||||
25 | (h) This subsection (h) applies only to payments made or | ||||||
26 | salary increases given on or after June 1, 2005 but before July |
| |||||||
| |||||||
1 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
2 | require the System to refund any payments received before July | ||||||
3 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
4 | When assessing payment for any amount due under subsection | ||||||
5 | (g), the System shall exclude earnings increases paid to | ||||||
6 | participants under contracts or collective bargaining | ||||||
7 | agreements entered into, amended, or renewed before June 1, | ||||||
8 | 2005.
| ||||||
9 | When assessing payment for any amount due under subsection | ||||||
10 | (g), the System shall exclude earnings increases paid to a | ||||||
11 | participant at a time when the participant is 10 or more years | ||||||
12 | from retirement eligibility under Section 15-135.
| ||||||
13 | When assessing payment for any amount due under subsection | ||||||
14 | (g), the System shall exclude earnings increases resulting from | ||||||
15 | overload work, including a contract for summer teaching, or | ||||||
16 | overtime when the employer has certified to the System, and the | ||||||
17 | System has approved the certification, that: (i) in the case of | ||||||
18 | overloads (A) the overload work is for the sole purpose of | ||||||
19 | academic instruction in excess of the standard number of | ||||||
20 | instruction hours for a full-time employee occurring during the | ||||||
21 | academic year that the overload is paid and (B) the earnings | ||||||
22 | increases are equal to or less than the rate of pay for | ||||||
23 | academic instruction computed using the participant's current | ||||||
24 | salary rate and work schedule; and (ii) in the case of | ||||||
25 | overtime, the overtime was necessary for the educational | ||||||
26 | mission. |
| |||||||
| |||||||
1 | When assessing payment for any amount due under subsection | ||||||
2 | (g), the System shall exclude any earnings increase resulting | ||||||
3 | from (i) a promotion for which the employee moves from one | ||||||
4 | classification to a higher classification under the State | ||||||
5 | Universities Civil Service System, (ii) a promotion in academic | ||||||
6 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
7 | promotion that the Illinois Community College Board has | ||||||
8 | recommended in accordance with subsection (k) of this Section. | ||||||
9 | These earnings increases shall be excluded only if the | ||||||
10 | promotion is to a position that has existed and been filled by | ||||||
11 | a member for no less than one complete academic year and the | ||||||
12 | earnings increase as a result of the promotion is an increase | ||||||
13 | that results in an amount no greater than the average salary | ||||||
14 | paid for other similar positions. | ||||||
15 | (i) When assessing payment for any amount due under | ||||||
16 | subsection (g), the System shall exclude any salary increase | ||||||
17 | described in subsection (h) of this Section given on or after | ||||||
18 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
19 | collective bargaining agreement entered into, amended, or | ||||||
20 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
21 | Notwithstanding any other provision of this Section, any | ||||||
22 | payments made or salary increases given after June 30, 2014 | ||||||
23 | shall be used in assessing payment for any amount due under | ||||||
24 | subsection (g) of this Section.
| ||||||
25 | (j) The System shall prepare a report and file copies of | ||||||
26 | the report with the Governor and the General Assembly by |
| |||||||
| |||||||
1 | January 1, 2007 that contains all of the following information: | ||||||
2 | (1) The number of recalculations required by the | ||||||
3 | changes made to this Section by Public Act 94-1057 for each | ||||||
4 | employer. | ||||||
5 | (2) The dollar amount by which each employer's | ||||||
6 | contribution to the System was changed due to | ||||||
7 | recalculations required by Public Act 94-1057. | ||||||
8 | (3) The total amount the System received from each | ||||||
9 | employer as a result of the changes made to this Section by | ||||||
10 | Public Act 94-4. | ||||||
11 | (4) The increase in the required State contribution | ||||||
12 | resulting from the changes made to this Section by Public | ||||||
13 | Act 94-1057. | ||||||
14 | (k) The Illinois Community College Board shall adopt rules | ||||||
15 | for recommending lists of promotional positions submitted to | ||||||
16 | the Board by community colleges and for reviewing the | ||||||
17 | promotional lists on an annual basis. When recommending | ||||||
18 | promotional lists, the Board shall consider the similarity of | ||||||
19 | the positions submitted to those positions recognized for State | ||||||
20 | universities by the State Universities Civil Service System. | ||||||
21 | The Illinois Community College Board shall file a copy of its | ||||||
22 | findings with the System. The System shall consider the | ||||||
23 | findings of the Illinois Community College Board when making | ||||||
24 | determinations under this Section. The System shall not exclude | ||||||
25 | any earnings increases resulting from a promotion when the | ||||||
26 | promotion was not submitted by a community college. Nothing in |
| |||||||
| |||||||
1 | this subsection (k) shall require any community college to | ||||||
2 | submit any information to the Community College Board.
| ||||||
3 | (l) For purposes of determining the required State | ||||||
4 | contribution to the System, the value of the System's assets | ||||||
5 | shall be equal to the actuarial value of the System's assets, | ||||||
6 | which shall be calculated as follows: | ||||||
7 | As of June 30, 2008, the actuarial value of the System's | ||||||
8 | assets shall be equal to the market value of the assets as of | ||||||
9 | that date. In determining the actuarial value of the System's | ||||||
10 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
11 | gains or losses from investment return incurred in a fiscal | ||||||
12 | year shall be recognized in equal annual amounts over the | ||||||
13 | 5-year period following that fiscal year. | ||||||
14 | (m) For purposes of determining the required State | ||||||
15 | contribution to the system for a particular year, the actuarial | ||||||
16 | value of assets shall be assumed to earn a rate of return equal | ||||||
17 | to the system's actuarially assumed rate of return. | ||||||
18 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
19 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
20 | 7-13-12; revised 10-17-12.)
| ||||||
21 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
22 | Sec. 15-165. To certify amounts and submit vouchers.
| ||||||
23 | (a) The Board shall certify to the Governor on or before | ||||||
24 | November 15 of each
year until November 15, 2011 the | ||||||
25 | appropriation required from State funds for the purposes of |
| |||||||
| |||||||
1 | this
System for the following fiscal year. The certification | ||||||
2 | under this subsection (a) shall include a copy
of the actuarial | ||||||
3 | recommendations upon which it is based and shall specifically | ||||||
4 | identify the System's projected State normal cost for that | ||||||
5 | fiscal year and the projected State cost for the self-managed | ||||||
6 | plan for that fiscal year.
| ||||||
7 | On or before May 1, 2004, the Board shall recalculate and | ||||||
8 | recertify to
the Governor the amount of the required State | ||||||
9 | contribution to the System for
State fiscal year 2005, taking | ||||||
10 | into account the amounts appropriated to and
received by the | ||||||
11 | System under subsection (d) of Section 7.2 of the General
| ||||||
12 | Obligation Bond Act.
| ||||||
13 | On or before July 1, 2005, the Board shall recalculate and | ||||||
14 | recertify
to the Governor the amount of the required State
| ||||||
15 | contribution to the System for State fiscal year 2006, taking | ||||||
16 | into account the changes in required State contributions made | ||||||
17 | by this amendatory Act of the 94th General Assembly.
| ||||||
18 | On or before April 1, 2011, the Board shall recalculate and | ||||||
19 | recertify to the Governor the amount of the required State | ||||||
20 | contribution to the System for State fiscal year 2011, applying | ||||||
21 | the changes made by Public Act 96-889 to the System's assets | ||||||
22 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
23 | was approved on that date. | ||||||
24 | (a-5) On or before November 1 of each year, beginning | ||||||
25 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
26 | the Governor, and the General Assembly a proposed certification |
| |||||||
| |||||||
1 | of the amount of the required State contribution to the System | ||||||
2 | for the next fiscal year, along with all of the actuarial | ||||||
3 | assumptions, calculations, and data upon which that proposed | ||||||
4 | certification is based. On or before January 1 of each year, | ||||||
5 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
6 | preliminary report concerning the proposed certification and | ||||||
7 | identifying, if necessary, recommended changes in actuarial | ||||||
8 | assumptions that the Board must consider before finalizing its | ||||||
9 | certification of the required State contributions. On or before | ||||||
10 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
11 | shall certify to the Governor and the General Assembly the | ||||||
12 | amount of the required State contribution for the next fiscal | ||||||
13 | year. The Board's certification must incorporate and follow | ||||||
14 | note, in a written response to the State Actuary, any | ||||||
15 | deviations from the State Actuary's recommended changes , the | ||||||
16 | reason or reasons for not following the State Actuary's | ||||||
17 | recommended changes, and the fiscal impact of not following the | ||||||
18 | State Actuary's recommended changes on the required State | ||||||
19 | contribution . | ||||||
20 | (b) The Board shall certify to the State Comptroller or | ||||||
21 | employer, as the
case may be, from time to time, by its | ||||||
22 | president and secretary, with its seal
attached, the amounts | ||||||
23 | payable to the System from the various funds.
| ||||||
24 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
25 | possible after the
15th day of each month the Board shall | ||||||
26 | submit vouchers for payment of State
contributions to the |
| |||||||
| |||||||
1 | System, in a total monthly amount of one-twelfth of the
| ||||||
2 | required annual State contribution certified under subsection | ||||||
3 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
4 | General Assembly through June 30, 2004, the Board shall not
| ||||||
5 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
6 | of the
fiscal year 2004 certified contribution amount | ||||||
7 | determined
under this Section after taking into consideration | ||||||
8 | the transfer to the
System under subsection (b) of Section | ||||||
9 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
10 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
11 | funds appropriated to the System for that fiscal year.
| ||||||
12 | If in any month the amount remaining unexpended from all | ||||||
13 | other
appropriations to the System for the applicable fiscal | ||||||
14 | year (including the
appropriations to the System under Section | ||||||
15 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
16 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
17 | amount lawfully vouchered under this Section, the difference | ||||||
18 | shall be paid
from the General Revenue Fund under the | ||||||
19 | continuing appropriation authority
provided in Section 1.1 of | ||||||
20 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
21 | (d) So long as the payments received are the full amount | ||||||
22 | lawfully
vouchered under this Section, payments received by the | ||||||
23 | System under this
Section shall be applied first toward the | ||||||
24 | employer contribution to the
self-managed plan established | ||||||
25 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
26 | the employer's portion of the normal costs of the System,
as |
| |||||||
| |||||||
1 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
2 | be applied
toward the unfunded actuarial liabilities of the | ||||||
3 | System.
| ||||||
4 | (e) In the event that the System does not receive, as a | ||||||
5 | result of
legislative enactment or otherwise, payments | ||||||
6 | sufficient to
fully fund the employer contribution to the | ||||||
7 | self-managed plan
established under Section 15-158.2 and to | ||||||
8 | fully fund that portion of the
employer's portion of the normal | ||||||
9 | costs of the System, as calculated in
accordance with Section | ||||||
10 | 15-155(a-1), then any payments received shall be
applied | ||||||
11 | proportionately to the optional retirement program established | ||||||
12 | under
Section 15-158.2 and to the employer's portion of the | ||||||
13 | normal costs of the
System, as calculated in accordance with | ||||||
14 | Section 15-155(a-1).
| ||||||
15 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
16 | 97-694, eff. 6-18-12.)
| ||||||
17 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
18 | Sec. 16-158. Contributions by State and other employing | ||||||
19 | units.
| ||||||
20 | (a) The State shall make contributions to the System by | ||||||
21 | means of
appropriations from the Common School Fund and other | ||||||
22 | State funds of amounts
which, together with other employer | ||||||
23 | contributions, employee contributions,
investment income, and | ||||||
24 | other income, will be sufficient to meet the cost of
| ||||||
25 | maintaining and administering the System on a 100% 90% funded |
| |||||||
| |||||||
1 | basis in accordance
with actuarial recommendations by the end | ||||||
2 | of State fiscal year 2043 .
| ||||||
3 | The Board shall determine the amount of State contributions | ||||||
4 | required for
each fiscal year on the basis of the actuarial | ||||||
5 | tables and other assumptions
adopted by the Board and the | ||||||
6 | recommendations of the actuary, using the formula
in subsection | ||||||
7 | (b-3).
| ||||||
8 | (a-1) Annually, on or before November 15 through until | ||||||
9 | November 15, 2011, the Board shall certify to the
Governor the | ||||||
10 | amount of the required State contribution for the coming fiscal
| ||||||
11 | year. The certification under this subsection (a-1) shall | ||||||
12 | include a copy of the actuarial recommendations
upon which it | ||||||
13 | is based and shall specifically identify the System's projected | ||||||
14 | State normal cost for that fiscal year.
| ||||||
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 | On or before April 1, 2011, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify to the Governor the amount of the required State | ||||||
2 | contribution to the System for State fiscal year 2011, applying | ||||||
3 | the changes made by Public Act 96-889 to the System's assets | ||||||
4 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
5 | was approved on that date. | ||||||
6 | (a-5) On or before November 1 of each year, beginning | ||||||
7 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
8 | the Governor, and the General Assembly a proposed certification | ||||||
9 | of the amount of the required State contribution to the System | ||||||
10 | for the next fiscal year, along with all of the actuarial | ||||||
11 | assumptions, calculations, and data upon which that proposed | ||||||
12 | certification is based. On or before January 1 of each year, | ||||||
13 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
14 | preliminary report concerning the proposed certification and | ||||||
15 | identifying, if necessary, recommended changes in actuarial | ||||||
16 | assumptions that the Board must consider before finalizing its | ||||||
17 | certification of the required State contributions. | ||||||
18 | On or before January 15, 2013 and each January 15 | ||||||
19 | thereafter, the Board shall certify to the Governor and the | ||||||
20 | General Assembly the amount of the required State contribution | ||||||
21 | for the next fiscal year. The Board's certification must | ||||||
22 | incorporate and follow note any deviations from the State | ||||||
23 | Actuary's recommended changes , the reason or reasons for not | ||||||
24 | following the State Actuary's recommended changes, and the | ||||||
25 | fiscal impact of not following the State Actuary's recommended | ||||||
26 | changes on the required State contribution . |
| |||||||
| |||||||
1 | (b) Through State fiscal year 1995, the State contributions | ||||||
2 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
3 | the School Code.
| ||||||
4 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
5 | of each month,
or as soon thereafter as may be practicable, the | ||||||
6 | Board shall submit vouchers
for payment of State contributions | ||||||
7 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
8 | required annual State contribution certified under
subsection | ||||||
9 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
10 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
11 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
12 | excess of the fiscal year 2004
certified contribution amount | ||||||
13 | determined under this Section
after taking into consideration | ||||||
14 | the transfer to the System
under subsection (a) of Section | ||||||
15 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
16 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
17 | funds appropriated to the System for that
fiscal year.
| ||||||
18 | If in any month the amount remaining unexpended from all | ||||||
19 | other appropriations
to the System for the applicable fiscal | ||||||
20 | year (including the appropriations to
the System under Section | ||||||
21 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
22 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
23 | amount
lawfully vouchered under this subsection, the | ||||||
24 | difference shall be paid from the
Common School Fund under the | ||||||
25 | continuing appropriation authority provided in
Section 1.1 of | ||||||
26 | the State Pension Funds Continuing Appropriation Act.
|
| |||||||
| |||||||
1 | (b-2) Allocations from the Common School Fund apportioned | ||||||
2 | to school
districts not coming under this System shall not be | ||||||
3 | diminished or affected by
the provisions of this Article.
| ||||||
4 | (b-3) For State fiscal years 2014 through 2043, the minimum | ||||||
5 | contribution
to the System to be made by the State for each | ||||||
6 | fiscal year shall be an amount
determined by the System to be | ||||||
7 | equal to the sum of (1) the State's portion of the projected | ||||||
8 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
9 | to bring the total assets of the
System up to 100% of the total | ||||||
10 | actuarial liabilities of the System by the end of
State fiscal | ||||||
11 | year 2043. In making these determinations, the required State
| ||||||
12 | contribution shall be calculated each year as a level | ||||||
13 | percentage of payroll
over the years remaining to and including | ||||||
14 | fiscal year 2043 and shall be
determined under the projected | ||||||
15 | unit credit actuarial cost method. | ||||||
16 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
17 | minimum contribution
to the System to be made by the State for | ||||||
18 | each fiscal year shall be an amount
determined by the System to | ||||||
19 | be sufficient to bring the total assets of the
System up to 90% | ||||||
20 | of the total actuarial liabilities of the System by the end of
| ||||||
21 | State fiscal year 2045. In making these determinations, the | ||||||
22 | required State
contribution shall be calculated each year as a | ||||||
23 | level percentage of payroll
over the years remaining to and | ||||||
24 | including fiscal year 2045 and shall be
determined under the | ||||||
25 | projected unit credit actuarial cost method.
| ||||||
26 | For State fiscal years 1996 through 2005, the State |
| |||||||
| |||||||
1 | contribution to the
System, as a percentage of the applicable | ||||||
2 | employee payroll, shall be increased
in equal annual increments | ||||||
3 | so that by State fiscal year 2011, the State is
contributing at | ||||||
4 | the rate required under this Section; except that in the
| ||||||
5 | following specified State fiscal years, the State contribution | ||||||
6 | to the System
shall not be less than the following indicated | ||||||
7 | percentages of the applicable
employee payroll, even if the | ||||||
8 | indicated percentage will produce a State
contribution in | ||||||
9 | excess of the amount otherwise required under this subsection
| ||||||
10 | and subsection (a), and notwithstanding any contrary | ||||||
11 | certification made under
subsection (a-1) before the effective | ||||||
12 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
13 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
14 | 2003; and
13.56% in FY 2004.
| ||||||
15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State
contribution for State fiscal year 2006 is | ||||||
17 | $534,627,700.
| ||||||
18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution for State fiscal year 2007 is | ||||||
20 | $738,014,500.
| ||||||
21 | For each of State fiscal years 2008 through 2009, the State | ||||||
22 | contribution to
the System, as a percentage of the applicable | ||||||
23 | employee payroll, shall be
increased in equal annual increments | ||||||
24 | from the required State contribution for State fiscal year | ||||||
25 | 2007, so that by State fiscal year 2011, the
State is | ||||||
26 | contributing at the rate otherwise required under this Section.
|
| |||||||
| |||||||
1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State contribution for State fiscal year 2010 is | ||||||
3 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
4 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
5 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
6 | expenses determined by the System's share of total bond | ||||||
7 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
8 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
9 | due to the issuance of discounted bonds, if applicable. | ||||||
10 | Notwithstanding any other provision of this Article, the
| ||||||
11 | total required State contribution for State fiscal year 2011 is
| ||||||
12 | the amount recertified by the System on or before April 1, 2011 | ||||||
13 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
14 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
15 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
16 | pro rata share of bond sale
expenses determined by the System's | ||||||
17 | share of total bond
proceeds, (ii) any amounts received from | ||||||
18 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
19 | reduction in bond proceeds
due to the issuance of discounted | ||||||
20 | bonds, if applicable. This amount shall include, in addition to | ||||||
21 | the amount certified by the System, an amount necessary to meet | ||||||
22 | employer contributions required by the State as an employer | ||||||
23 | under paragraph (e) of this Section, which may also be used by | ||||||
24 | the System for contributions required by paragraph (a) of | ||||||
25 | Section 16-127. | ||||||
26 | For State fiscal year 2044 and thereafter, the minimum |
| |||||||
| |||||||
1 | State contribution for each fiscal year shall be the amount | ||||||
2 | needed to maintain the total assets of the System at 100% of | ||||||
3 | the total actuarial liabilities of the System. | ||||||
4 | Beginning in State fiscal year 2046, the minimum State | ||||||
5 | contribution for
each fiscal year shall be the amount needed to | ||||||
6 | maintain the total assets of
the System at 90% of the total | ||||||
7 | actuarial liabilities of the System.
| ||||||
8 | Amounts received by the System pursuant to Section 25 of | ||||||
9 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
10 | Finance Act in any fiscal year do not reduce and do not | ||||||
11 | constitute payment of any portion of the minimum State | ||||||
12 | contribution required under this Article in that fiscal year. | ||||||
13 | Such amounts shall not reduce, and shall not be included in the | ||||||
14 | calculation of, the required State contributions under this | ||||||
15 | Article in any future year until the System has reached a | ||||||
16 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
17 | to the "required State contribution" or any substantially | ||||||
18 | similar term does not include or apply to any amounts payable | ||||||
19 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
20 | Notwithstanding any other provision of this Section, the | ||||||
21 | required State
contribution for State fiscal year 2005 and for | ||||||
22 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
23 | under this Section and
certified under subsection (a-1), shall | ||||||
24 | not exceed an amount equal to (i) the
amount of the required | ||||||
25 | State contribution that would have been calculated under
this | ||||||
26 | Section for that fiscal year if the System had not received any |
| |||||||
| |||||||
1 | payments
under subsection (d) of Section 7.2 of the General | ||||||
2 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
3 | total debt service payments for that fiscal
year on the bonds | ||||||
4 | issued in fiscal year 2003 for the purposes of that Section | ||||||
5 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
6 | the same as the System's portion of
the total moneys | ||||||
7 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act. In determining this maximum for State | ||||||
9 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
10 | in item (i) shall be increased, as a percentage of the | ||||||
11 | applicable employee payroll, in equal increments calculated | ||||||
12 | from the sum of the required State contribution for State | ||||||
13 | fiscal year 2007 plus the applicable portion of the State's | ||||||
14 | total debt service payments for fiscal year 2007 on the bonds | ||||||
15 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
16 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
17 | 2011, the
State is contributing at the rate otherwise required | ||||||
18 | under this Section.
| ||||||
19 | (c) Payment of the required State contributions and of all | ||||||
20 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
21 | other benefits granted
under or assumed by this System, and all | ||||||
22 | expenses in connection with the
administration and operation | ||||||
23 | thereof, are obligations of the State.
| ||||||
24 | If members are paid from special trust or federal funds | ||||||
25 | which are
administered by the employing unit, whether school | ||||||
26 | district or other
unit, the employing unit shall pay to the |
| |||||||
| |||||||
1 | System from such
funds the full accruing retirement costs based | ||||||
2 | upon that
service, as determined by the System. Employer | ||||||
3 | contributions, based on
salary paid to members from federal | ||||||
4 | funds, may be forwarded by the distributing
agency of the State | ||||||
5 | of Illinois to the System prior to allocation, in an
amount | ||||||
6 | determined in accordance with guidelines established by such
| ||||||
7 | agency and the System.
| ||||||
8 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
9 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
10 | employer's normal cost
of benefits based upon the teacher's | ||||||
11 | service, in addition to
employee contributions, as determined | ||||||
12 | by the System. Such employer
contributions shall be forwarded | ||||||
13 | monthly in accordance with guidelines
established by the | ||||||
14 | System.
| ||||||
15 | However, with respect to benefits granted under Section | ||||||
16 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
17 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
18 | (rather than 20%) of the member's
highest annual salary rate | ||||||
19 | for each year of creditable service granted, and
the employer | ||||||
20 | shall also pay the required employee contribution on behalf of
| ||||||
21 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
22 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
23 | 16-106 who is serving in that capacity
while on leave of | ||||||
24 | absence from another employer under this Article shall not
be | ||||||
25 | considered an employee of the employer from which the teacher | ||||||
26 | is on leave.
|
| |||||||
| |||||||
1 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
2 | shall pay to the System an employer contribution computed as | ||||||
3 | follows:
| ||||||
4 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
5 | employer
contribution shall be equal to 0.3% of each | ||||||
6 | teacher's salary.
| ||||||
7 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
8 | contribution shall be equal to 0.58% of each teacher's | ||||||
9 | salary.
| ||||||
10 | The school district or other employing unit may pay these | ||||||
11 | employer
contributions out of any source of funding available | ||||||
12 | for that purpose and
shall forward the contributions to the | ||||||
13 | System on the schedule established
for the payment of member | ||||||
14 | contributions.
| ||||||
15 | These employer contributions are intended to offset a | ||||||
16 | portion of the cost
to the System of the increases in | ||||||
17 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
18 | Each employer of teachers is entitled to a credit against | ||||||
19 | the contributions
required under this subsection (e) with | ||||||
20 | respect to salaries paid to teachers
for the period January 1, | ||||||
21 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
22 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
23 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
24 | paid to teachers for that
period.
| ||||||
25 | The additional 1% employee contribution required under | ||||||
26 | Section 16-152 by
this amendatory Act of 1998 is the |
| |||||||
| |||||||
1 | responsibility of the teacher and not the
teacher's employer, | ||||||
2 | unless the employer agrees, through collective bargaining
or | ||||||
3 | otherwise, to make the contribution on behalf of the teacher.
| ||||||
4 | If an employer is required by a contract in effect on May | ||||||
5 | 1, 1998 between the
employer and an employee organization to | ||||||
6 | pay, on behalf of all its full-time
employees
covered by this | ||||||
7 | Article, all mandatory employee contributions required under
| ||||||
8 | this Article, then the employer shall be excused from paying | ||||||
9 | the employer
contribution required under this subsection (e) | ||||||
10 | for the balance of the term
of that contract. The employer and | ||||||
11 | the employee organization shall jointly
certify to the System | ||||||
12 | the existence of the contractual requirement, in such
form as | ||||||
13 | the System may prescribe. This exclusion shall cease upon the
| ||||||
14 | termination, extension, or renewal of the contract at any time | ||||||
15 | after May 1,
1998.
| ||||||
16 | (f) If the amount of a teacher's salary for any school year | ||||||
17 | used to determine final average salary exceeds the member's | ||||||
18 | annual full-time salary rate with the same employer for the | ||||||
19 | previous school year by more than 6%, the teacher's employer | ||||||
20 | shall pay to the System, in addition to all other payments | ||||||
21 | required under this Section and in accordance with guidelines | ||||||
22 | established by the System, the present value of the increase in | ||||||
23 | benefits resulting from the portion of the increase in salary | ||||||
24 | that is in excess of 6%. This present value shall be computed | ||||||
25 | by the System on the basis of the actuarial assumptions and | ||||||
26 | tables used in the most recent actuarial valuation of the |
| |||||||
| |||||||
1 | System that is available at the time of the computation. If a | ||||||
2 | teacher's salary for the 2005-2006 school year is used to | ||||||
3 | determine final average salary under this subsection (f), then | ||||||
4 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
5 | shall apply in calculating whether the increase in his or her | ||||||
6 | salary is in excess of 6%. For the purposes of this Section, | ||||||
7 | change in employment under Section 10-21.12 of the School Code | ||||||
8 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
9 | The System may require the employer to provide any pertinent | ||||||
10 | information or documentation.
The changes made to this | ||||||
11 | subsection (f) by this amendatory Act of the 94th General | ||||||
12 | Assembly apply without regard to whether the teacher was in | ||||||
13 | service on or after its effective date.
| ||||||
14 | Whenever it determines that a payment is or may be required | ||||||
15 | under this subsection, the System shall calculate the amount of | ||||||
16 | the payment and bill the employer for that amount. The bill | ||||||
17 | shall specify the calculations used to determine the amount | ||||||
18 | due. If the employer disputes the amount of the bill, it may, | ||||||
19 | within 30 days after receipt of the bill, apply to the System | ||||||
20 | in writing for a recalculation. The application must specify in | ||||||
21 | detail the grounds of the dispute and, if the employer asserts | ||||||
22 | that the calculation is subject to subsection (g) or (h) of | ||||||
23 | this Section, must include an affidavit setting forth and | ||||||
24 | attesting to all facts within the employer's knowledge that are | ||||||
25 | pertinent to the applicability of that subsection. Upon | ||||||
26 | receiving a timely application for recalculation, the System |
| |||||||
| |||||||
1 | shall review the application and, if appropriate, recalculate | ||||||
2 | the amount due.
| ||||||
3 | The employer contributions required under this subsection | ||||||
4 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
5 | receipt of the bill. If the employer contributions are not paid | ||||||
6 | within 90 days after receipt of the bill, then interest will be | ||||||
7 | charged at a rate equal to the System's annual actuarially | ||||||
8 | assumed rate of return on investment compounded annually from | ||||||
9 | the 91st day after receipt of the bill. Payments must be | ||||||
10 | concluded within 3 years after the employer's receipt of the | ||||||
11 | bill.
| ||||||
12 | (g) This subsection (g) applies only to payments made or | ||||||
13 | salary increases given on or after June 1, 2005 but before July | ||||||
14 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
15 | require the System to refund any payments received before
July | ||||||
16 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
17 | When assessing payment for any amount due under subsection | ||||||
18 | (f), the System shall exclude salary increases paid to teachers | ||||||
19 | under contracts or collective bargaining agreements entered | ||||||
20 | into, amended, or renewed before June 1, 2005.
| ||||||
21 | When assessing payment for any amount due under subsection | ||||||
22 | (f), the System shall exclude salary increases paid to a | ||||||
23 | teacher at a time when the teacher is 10 or more years from | ||||||
24 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
25 | When assessing payment for any amount due under subsection | ||||||
26 | (f), the System shall exclude salary increases resulting from |
| |||||||
| |||||||
1 | overload work, including summer school, when the school | ||||||
2 | district has certified to the System, and the System has | ||||||
3 | approved the certification, that (i) the overload work is for | ||||||
4 | the sole purpose of classroom instruction in excess of the | ||||||
5 | standard number of classes for a full-time teacher in a school | ||||||
6 | district during a school year and (ii) the salary increases are | ||||||
7 | equal to or less than the rate of pay for classroom instruction | ||||||
8 | computed on the teacher's current salary and work schedule.
| ||||||
9 | When assessing payment for any amount due under subsection | ||||||
10 | (f), the System shall exclude a salary increase resulting from | ||||||
11 | a promotion (i) for which the employee is required to hold a | ||||||
12 | certificate or supervisory endorsement issued by the State | ||||||
13 | Teacher Certification Board that is a different certification | ||||||
14 | or supervisory endorsement than is required for the teacher's | ||||||
15 | previous position and (ii) to a position that has existed and | ||||||
16 | been filled by a member for no less than one complete academic | ||||||
17 | year and the salary increase from the promotion is an increase | ||||||
18 | that results in an amount no greater than the lesser of the | ||||||
19 | average salary paid for other similar positions in the district | ||||||
20 | requiring the same certification or the amount stipulated in | ||||||
21 | the collective bargaining agreement for a similar position | ||||||
22 | requiring the same certification.
| ||||||
23 | When assessing payment for any amount due under subsection | ||||||
24 | (f), the System shall exclude any payment to the teacher from | ||||||
25 | the State of Illinois or the State Board of Education over | ||||||
26 | which the employer does not have discretion, notwithstanding |
| |||||||
| |||||||
1 | that the payment is included in the computation of final | ||||||
2 | average salary.
| ||||||
3 | (h) When assessing payment for any amount due under | ||||||
4 | subsection (f), the System shall exclude any salary increase | ||||||
5 | described in subsection (g) of this Section given on or after | ||||||
6 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
7 | collective bargaining agreement entered into, amended, or | ||||||
8 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
9 | Notwithstanding any other provision of this Section, any | ||||||
10 | payments made or salary increases given after June 30, 2014 | ||||||
11 | shall be used in assessing payment for any amount due under | ||||||
12 | subsection (f) of this Section.
| ||||||
13 | (i) The System shall prepare a report and file copies of | ||||||
14 | the report with the Governor and the General Assembly by | ||||||
15 | January 1, 2007 that contains all of the following information: | ||||||
16 | (1) The number of recalculations required by the | ||||||
17 | changes made to this Section by Public Act 94-1057 for each | ||||||
18 | employer. | ||||||
19 | (2) The dollar amount by which each employer's | ||||||
20 | contribution to the System was changed due to | ||||||
21 | recalculations required by Public Act 94-1057. | ||||||
22 | (3) The total amount the System received from each | ||||||
23 | employer as a result of the changes made to this Section by | ||||||
24 | Public Act 94-4. | ||||||
25 | (4) The increase in the required State contribution | ||||||
26 | resulting from the changes made to this Section by Public |
| |||||||
| |||||||
1 | Act 94-1057.
| ||||||
2 | (j) For purposes of determining the required State | ||||||
3 | contribution to the System, the value of the System's assets | ||||||
4 | shall be equal to the actuarial value of the System's assets, | ||||||
5 | which shall be calculated as follows: | ||||||
6 | As of June 30, 2008, the actuarial value of the System's | ||||||
7 | assets shall be equal to the market value of the assets as of | ||||||
8 | that date. In determining the actuarial value of the System's | ||||||
9 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
10 | gains or losses from investment return incurred in a fiscal | ||||||
11 | year shall be recognized in equal annual amounts over the | ||||||
12 | 5-year period following that fiscal year. | ||||||
13 | (k) For purposes of determining the required State | ||||||
14 | contribution to the system for a particular year, the actuarial | ||||||
15 | value of assets shall be assumed to earn a rate of return equal | ||||||
16 | to the system's actuarially assumed rate of return. | ||||||
17 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
18 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
19 | 6-18-12; 97-813, eff. 7-13-12.)
| ||||||
20 | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| ||||||
21 | Sec. 18-131. Financing; employer contributions.
| ||||||
22 | (a) The State of Illinois shall make contributions to this | ||||||
23 | System by
appropriations of the amounts which, together with | ||||||
24 | the contributions of
participants, net earnings on | ||||||
25 | investments, and other income, will meet the
costs of |
| |||||||
| |||||||
1 | maintaining and administering this System on a 100% 90% funded | ||||||
2 | basis in
accordance with actuarial recommendations by the end | ||||||
3 | of State fiscal year 2043 .
| ||||||
4 | (b) The Board shall determine the amount of State | ||||||
5 | contributions
required for each fiscal year on the basis of the | ||||||
6 | actuarial tables and other
assumptions adopted by the Board and | ||||||
7 | the prescribed rate of interest, using
the formula in | ||||||
8 | subsection (c).
| ||||||
9 | (c) For State fiscal years 2014 through 2043, the minimum | ||||||
10 | contribution
to the System to be made by the State for each | ||||||
11 | fiscal year shall be an amount
determined by the System to be | ||||||
12 | equal to the sum of (1) the State's portion of the projected | ||||||
13 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
14 | to bring the total assets of the
System up to 100% of the total | ||||||
15 | actuarial liabilities of the System by the end of
State fiscal | ||||||
16 | year 2043. In making these determinations, the required State
| ||||||
17 | contribution shall be calculated each year as a level | ||||||
18 | percentage of payroll
over the years remaining to and including | ||||||
19 | fiscal year 2043 and shall be
determined under the projected | ||||||
20 | unit credit actuarial cost method. | ||||||
21 | Beginning in State fiscal year 2044, the minimum State | ||||||
22 | contribution for each fiscal year shall be the amount needed to | ||||||
23 | maintain the total assets of the System at 100% of the total | ||||||
24 | actuarial liabilities of the System. | ||||||
25 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
26 | minimum contribution
to the System to be made by the State for |
| |||||||
| |||||||
1 | each fiscal year shall be an amount
determined by the System to | ||||||
2 | be sufficient to bring the total assets of the
System up to 90% | ||||||
3 | of the total actuarial liabilities of the System by the end of
| ||||||
4 | State fiscal year 2045. In making these determinations, the | ||||||
5 | required State
contribution shall be calculated each year as a | ||||||
6 | level percentage of payroll
over the years remaining to and | ||||||
7 | including fiscal year 2045 and shall be
determined under the | ||||||
8 | projected unit credit actuarial cost method.
| ||||||
9 | For State fiscal years 1996 through 2005, the State | ||||||
10 | contribution to
the System, as a percentage of the applicable | ||||||
11 | employee payroll, shall be
increased in equal annual increments | ||||||
12 | so that by State fiscal year 2011, the
State is contributing at | ||||||
13 | the rate required under this Section.
| ||||||
14 | Notwithstanding any other provision of this Article, the | ||||||
15 | total required State
contribution for State fiscal year 2006 is | ||||||
16 | $29,189,400.
| ||||||
17 | Notwithstanding any other provision of this Article, the | ||||||
18 | total required State
contribution for State fiscal year 2007 is | ||||||
19 | $35,236,800.
| ||||||
20 | For each of State fiscal years 2008 through 2009, the State | ||||||
21 | contribution to
the System, as a percentage of the applicable | ||||||
22 | employee payroll, shall be
increased in equal annual increments | ||||||
23 | from the required State contribution for State fiscal year | ||||||
24 | 2007, so that by State fiscal year 2011, the
State is | ||||||
25 | contributing at the rate otherwise required under this Section.
| ||||||
26 | Notwithstanding any other provision of this Article, the |
| |||||||
| |||||||
1 | total required State contribution for State fiscal year 2010 is | ||||||
2 | $78,832,000 and shall be made from the proceeds of bonds sold | ||||||
3 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
4 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
5 | expenses determined by the System's share of total bond | ||||||
6 | proceeds, (ii) any amounts received from the General Revenue | ||||||
7 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
8 | proceeds due to the issuance of discounted bonds, if | ||||||
9 | applicable. | ||||||
10 | Notwithstanding any other provision of this Article, the | ||||||
11 | total required State contribution for State fiscal year 2011 is
| ||||||
12 | the amount recertified by the System on or before April 1, 2011 | ||||||
13 | pursuant to Section 18-140 and shall be made from the proceeds | ||||||
14 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
15 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
16 | bond sale
expenses determined by the System's share of total | ||||||
17 | bond
proceeds, (ii) any amounts received from the General | ||||||
18 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | ||||||
19 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
20 | applicable. | ||||||
21 | Beginning in State fiscal year 2046, the minimum State | ||||||
22 | contribution for
each fiscal year shall be the amount needed to | ||||||
23 | maintain the total assets of
the System at 90% of the total | ||||||
24 | actuarial liabilities of the System.
| ||||||
25 | Amounts received by the System pursuant to Section 25 of | ||||||
26 | the Budget Stabilization Act or Section 8.12 of the State |
| |||||||
| |||||||
1 | Finance Act in any fiscal year do not reduce and do not | ||||||
2 | constitute payment of any portion of the minimum State | ||||||
3 | contribution required under this Article in that fiscal year. | ||||||
4 | Such amounts shall not reduce, and shall not be included in the | ||||||
5 | calculation of, the required State contributions under this | ||||||
6 | Article in any future year until the System has reached a | ||||||
7 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
8 | to the "required State contribution" or any substantially | ||||||
9 | similar term does not include or apply to any amounts payable | ||||||
10 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
11 | Notwithstanding any other provision of this Section, the | ||||||
12 | required State
contribution for State fiscal year 2005 and for | ||||||
13 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
14 | under this Section and
certified under Section 18-140, shall | ||||||
15 | not exceed an amount equal to (i) the
amount of the required | ||||||
16 | State contribution that would have been calculated under
this | ||||||
17 | Section for that fiscal year if the System had not received any | ||||||
18 | payments
under subsection (d) of Section 7.2 of the General | ||||||
19 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
20 | total debt service payments for that fiscal
year on the bonds | ||||||
21 | issued in fiscal year 2003 for the purposes of that Section | ||||||
22 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
23 | the same as the System's portion of
the total moneys | ||||||
24 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
25 | Obligation Bond Act. In determining this maximum for State | ||||||
26 | fiscal years 2008 through 2010, however, the amount referred to |
| |||||||
| |||||||
1 | in item (i) shall be increased, as a percentage of the | ||||||
2 | applicable employee payroll, in equal increments calculated | ||||||
3 | from the sum of the required State contribution for State | ||||||
4 | fiscal year 2007 plus the applicable portion of the State's | ||||||
5 | total debt service payments for fiscal year 2007 on the bonds | ||||||
6 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
7 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
8 | 2011, the
State is contributing at the rate otherwise required | ||||||
9 | under this Section.
| ||||||
10 | (d) For purposes of determining the required State | ||||||
11 | contribution to the System, the value of the System's assets | ||||||
12 | shall be equal to the actuarial value of the System's assets, | ||||||
13 | which shall be calculated as follows: | ||||||
14 | As of June 30, 2008, the actuarial value of the System's | ||||||
15 | assets shall be equal to the market value of the assets as of | ||||||
16 | that date. In determining the actuarial value of the System's | ||||||
17 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
18 | gains or losses from investment return incurred in a fiscal | ||||||
19 | year shall be recognized in equal annual amounts over the | ||||||
20 | 5-year period following that fiscal year. | ||||||
21 | (e) For purposes of determining the required State | ||||||
22 | contribution to the system for a particular year, the actuarial | ||||||
23 | value of assets shall be assumed to earn a rate of return equal | ||||||
24 | to the system's actuarially assumed rate of return. | ||||||
25 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
26 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
| |||||||
| |||||||
1 | 7-13-12.)
| ||||||
2 | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| ||||||
3 | Sec. 18-140. To certify required State contributions and | ||||||
4 | submit vouchers.
| ||||||
5 | (a) The Board shall certify to the Governor, on or before | ||||||
6 | November 15 of
each year until November 15, 2011, the amount of | ||||||
7 | the required State contribution to the System for the
following | ||||||
8 | fiscal year and shall specifically identify the System's | ||||||
9 | projected State normal cost for that fiscal year. The | ||||||
10 | certification shall include a copy of the actuarial
| ||||||
11 | recommendations upon which it is based and shall specifically | ||||||
12 | identify the System's projected State normal cost for that | ||||||
13 | fiscal year.
| ||||||
14 | On or before November 1 of each year, beginning November 1, | ||||||
15 | 2012, the Board shall submit to the State Actuary, the | ||||||
16 | Governor, and the General Assembly a proposed certification of | ||||||
17 | the amount of the required State contribution to the System for | ||||||
18 | the next fiscal year, along with all of the actuarial | ||||||
19 | assumptions, calculations, and data upon which that proposed | ||||||
20 | certification is based. On or before January 1 of each year | ||||||
21 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
22 | preliminary report concerning the proposed certification and | ||||||
23 | identifying, if necessary, recommended changes in actuarial | ||||||
24 | assumptions that the Board must consider before finalizing its | ||||||
25 | certification of the required State contributions. On or before |
| |||||||
| |||||||
1 | January 15, 2013 and every January 15 thereafter, the Board | ||||||
2 | shall certify to the Governor and the General Assembly the | ||||||
3 | amount of the required State contribution for the next fiscal | ||||||
4 | year. The Board's certification must incorporate and follow | ||||||
5 | note any deviations from the State Actuary's recommended | ||||||
6 | changes , the reason or reasons for not following the State | ||||||
7 | Actuary's recommended changes, and the fiscal impact of not | ||||||
8 | following the State Actuary's recommended changes on the | ||||||
9 | required State contribution . | ||||||
10 | On or before May 1, 2004, the Board shall recalculate and | ||||||
11 | recertify to
the Governor the amount of the required State | ||||||
12 | contribution to the System for
State fiscal year 2005, taking | ||||||
13 | into account the amounts appropriated to and
received by the | ||||||
14 | System under subsection (d) of Section 7.2 of the General
| ||||||
15 | Obligation Bond Act.
| ||||||
16 | On or before July 1, 2005, the Board shall recalculate and | ||||||
17 | recertify
to the Governor the amount of the required State
| ||||||
18 | contribution to the System for State fiscal year 2006, taking | ||||||
19 | into account the changes in required State contributions made | ||||||
20 | by this amendatory Act of the 94th General Assembly.
| ||||||
21 | On or before April 1, 2011, 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 2011, applying | ||||||
24 | the changes made by Public Act 96-889 to the System's assets | ||||||
25 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
26 | was approved on that date. |
| |||||||
| |||||||
1 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
2 | possible after
the 15th day of each month the Board shall | ||||||
3 | submit vouchers for payment of State
contributions to the | ||||||
4 | System, in a total monthly amount of one-twelfth of the
| ||||||
5 | required annual State contribution certified under subsection | ||||||
6 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
7 | General Assembly through June 30, 2004, the Board shall not
| ||||||
8 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
9 | of the
fiscal year 2004 certified contribution amount | ||||||
10 | determined
under this Section after taking into consideration | ||||||
11 | the transfer to the
System under subsection (c) of Section | ||||||
12 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
13 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
14 | funds appropriated to the System for that fiscal year.
| ||||||
15 | If in any month the amount remaining unexpended from all | ||||||
16 | other
appropriations to the System for the applicable fiscal | ||||||
17 | year (including the
appropriations to the System under Section | ||||||
18 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
19 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
20 | amount lawfully vouchered under this Section, the difference | ||||||
21 | shall be paid
from the General Revenue Fund under the | ||||||
22 | continuing appropriation authority
provided in Section 1.1 of | ||||||
23 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
24 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
25 | 97-694, eff. 6-18-12.)
| ||||||
26 | Section 99. Effective date. This Act takes effect upon |
| |||||||
| |||||||
1 | becoming law.
|