Sen. Donne E. Trotter

Filed: 1/6/2011

 

 


 

 


 
09600HB5960sam002LRB096 17668 PJG 44822 a

1
AMENDMENT TO HOUSE BILL 5960

2    AMENDMENT NO. ______. Amend House Bill 5960, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The General Obligation Bond Act is amended by
6changing Sections 2, 3, 4, 5, 6, 7, and 9 as follows:
 
7    (30 ILCS 330/2)  (from Ch. 127, par. 652)
8    Sec. 2. Authorization for Bonds. The State of Illinois is
9authorized to issue, sell and provide for the retirement of
10General Obligation Bonds of the State of Illinois for the
11categories and specific purposes expressed in Sections 2
12through 8 of this Act, in the total amount of $41,379,777,443
13$37,217,777,443 $36,967,777,443.
14    The bonds authorized in this Section 2 and in Section 16 of
15this Act are herein called "Bonds".
16    Of the total amount of Bonds authorized in this Act, up to

 

 

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1$2,200,000,000 in aggregate original principal amount may be
2issued and sold in accordance with the Baccalaureate Savings
3Act in the form of General Obligation College Savings Bonds.
4    Of the total amount of Bonds authorized in this Act, up to
5$300,000,000 in aggregate original principal amount may be
6issued and sold in accordance with the Retirement Savings Act
7in the form of General Obligation Retirement Savings Bonds.
8    Of the total amount of Bonds authorized in this Act, the
9additional $10,000,000,000 authorized by Public Act 93-2 and
10the $3,466,000,000 authorized by Public Act 96-43 shall be used
11solely as provided in Section 7.2.
12    The issuance and sale of Bonds pursuant to the General
13Obligation Bond Act is an economical and efficient method of
14financing the long-term capital needs of the State. This Act
15will permit the issuance of a multi-purpose General Obligation
16Bond with uniform terms and features. This will not only lower
17the cost of registration but also reduce the overall cost of
18issuing debt by improving the marketability of Illinois General
19Obligation Bonds.
20(Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36,
21eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10;
2296-1000, eff. 7-2-10; revised 9-3-10.)
 
23    (30 ILCS 330/3)  (from Ch. 127, par. 653)
24    Sec. 3. Capital Facilities. The amount of $8,900,463,443
25$7,968,463,443 is authorized to be used for the acquisition,

 

 

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1development, construction, reconstruction, improvement,
2financing, architectural planning and installation of capital
3facilities within the State, consisting of buildings,
4structures, durable equipment, land, interests in land, and the
5costs associated with the purchase and implementation of
6information technology, including but not limited to the
7purchase of hardware and software, for the following specific
8purposes:
9        (a) $3,007,228,000 $2,511,228,000 for educational
10    purposes by State universities and colleges, the Illinois
11    Community College Board created by the Public Community
12    College Act and for grants to public community colleges as
13    authorized by Sections 5-11 and 5-12 of the Public
14    Community College Act;
15        (b) $1,648,420,000 $1,617,420,000 for correctional
16    purposes at State prison and correctional centers;
17        (c) $599,183,000 $575,183,000 for open spaces,
18    recreational and conservation purposes and the protection
19    of land;
20        (d) $691,917,000 $664,917,000 for child care
21    facilities, mental and public health facilities, and
22    facilities for the care of disabled veterans and their
23    spouses;
24        (e) $1,777,990,000 $1,630,990,000 for use by the
25    State, its departments, authorities, public corporations,
26    commissions and agencies;

 

 

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1        (f) $818,100 for cargo handling facilities at port
2    districts and for breakwaters, including harbor entrances,
3    at port districts in conjunction with facilities for small
4    boats and pleasure crafts;
5        (g) $274,877,074 $248,877,074 for water resource
6    management projects;
7        (h) $16,940,269 for the provision of facilities for
8    food production research and related instructional and
9    public service activities at the State universities and
10    public community colleges;
11        (i) $36,000,000 for grants by the Secretary of State,
12    as State Librarian, for central library facilities
13    authorized by Section 8 of the Illinois Library System Act
14    and for grants by the Capital Development Board to units of
15    local government for public library facilities;
16        (j) $25,000,000 for the acquisition, development,
17    construction, reconstruction, improvement, financing,
18    architectural planning and installation of capital
19    facilities consisting of buildings, structures, durable
20    equipment and land for grants to counties, municipalities
21    or public building commissions with correctional
22    facilities that do not comply with the minimum standards of
23    the Department of Corrections under Section 3-15-2 of the
24    Unified Code of Corrections;
25        (k) $5,000,000 for grants in fiscal year 1988 by the
26    Department of Conservation for improvement or expansion of

 

 

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1    aquarium facilities located on property owned by a park
2    district;
3        (l) $588,590,000 $432,590,000 to State agencies for
4    grants to local governments for the acquisition,
5    financing, architectural planning, development,
6    alteration, installation, and construction of capital
7    facilities consisting of buildings, structures, durable
8    equipment, and land; and
9        (m) $228,500,000 $203,500,000 for the Illinois Open
10    Land Trust Program as defined by the Illinois Open Land
11    Trust Act.
12    The amounts authorized above for capital facilities may be
13used for the acquisition, installation, alteration,
14construction, or reconstruction of capital facilities and for
15the purchase of equipment for the purpose of major capital
16improvements which will reduce energy consumption in State
17buildings or facilities.
18(Source: P.A. 96-36, eff. 7-13-09; 96-37, eff. 7-13-09;
1996-1000, eff. 7-2-10.)
 
20    (30 ILCS 330/4)  (from Ch. 127, par. 654)
21    Sec. 4. Transportation. The amount of $12,443,799,000
22$9,948,799,000 is authorized for use by the Department of
23Transportation for the specific purpose of promoting and
24assuring rapid, efficient, and safe highway, air and mass
25transportation for the inhabitants of the State by providing

 

 

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1monies, including the making of grants and loans, for the
2acquisition, construction, reconstruction, extension and
3improvement of the following transportation facilities and
4equipment, and for the acquisition of real property and
5interests in real property required or expected to be required
6in connection therewith as follows:
7    (a) $5,432,129,000 for State highways, arterial highways,
8freeways, roads, bridges, structures separating highways and
9railroads and roads, and bridges on roads maintained by
10counties, municipalities, townships or road districts for the
11following specific purposes:
12        (1) $3,330,000,000 for use statewide,
13        (2) $3,677,000 for use outside the Chicago urbanized
14    area,
15        (3) $7,543,000 for use within the Chicago urbanized
16    area,
17        (4) $13,060,600 for use within the City of Chicago,
18        (5) $58,987,500 for use within the counties of Cook,
19    DuPage, Kane, Lake, McHenry and Will,
20        (6) $18,860,900 for use outside the counties of Cook,
21    DuPage, Kane, Lake, McHenry and Will, and
22        (7) $2,000,000,000 for use on projects included in
23    either (i) the FY09-14 Proposed Highway Improvement
24    Program as published by the Illinois Department of
25    Transportation in May 2008 or (ii) the FY10-15 Proposed
26    Highway Improvement Program to be published by the Illinois

 

 

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1    Department of Transportation in the spring of 2009; except
2    that all projects must be maintenance projects for the
3    existing State system with the goal of reaching 90%
4    acceptable condition in the system statewide and further
5    except that all projects must reflect the generally
6    accepted historical distribution of projects throughout
7    the State.
8    (b) $4,280,070,000 $3,130,070,000 for rail facilities and
9for mass transit facilities, as defined in Section 2705-305 of
10the Department of Transportation Law (20 ILCS 2705/2705-305),
11including rapid transit, rail, bus and other equipment used in
12connection therewith by the State or any unit of local
13government, special transportation district, municipal
14corporation or other corporation or public authority
15authorized to provide and promote public transportation within
16the State or two or more of the foregoing jointly, for the
17following specific purposes:
18        (1) $3,184,270,000 $2,034,270,000 statewide,
19        (2) $83,350,000 for use within the counties of Cook,
20    DuPage, Kane, Lake, McHenry and Will,
21        (3) $12,450,000 for use outside the counties of Cook,
22    DuPage, Kane, Lake, McHenry and Will, and
23        (4) $1,000,000,000 for use on projects that shall
24    reflect the generally accepted historical distribution of
25    projects throughout the State.
26    (c) $482,600,000 $371,600,000 for airport or aviation

 

 

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1facilities and any equipment used in connection therewith,
2including engineering and land acquisition costs, by the State
3or any unit of local government, special transportation
4district, municipal corporation or other corporation or public
5authority authorized to provide public transportation within
6the State, or two or more of the foregoing acting jointly, and
7for the making of deposits into the Airport Land Loan Revolving
8Fund for loans to public airport owners pursuant to the
9Illinois Aeronautics Act.
10    (d) $2,249,000,000 $1,015,000,000 for use statewide for
11State or local highways, arterial highways, freeways, roads,
12bridges, and structures separating highways and railroads and
13roads, and for grants to counties, municipalities, townships,
14or road districts for planning, engineering, acquisition,
15construction, reconstruction, development, improvement,
16extension, and all construction-related expenses of the public
17infrastructure and other transportation improvement projects
18which are related to economic development in the State of
19Illinois.
20(Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-37,
21eff. 7-13-09.)
 
22    (30 ILCS 330/5)  (from Ch. 127, par. 655)
23    Sec. 5. School Construction.
24    (a) The amount of $58,450,000 is authorized to make grants
25to local school districts for the acquisition, development,

 

 

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1construction, reconstruction, rehabilitation, improvement,
2financing, architectural planning and installation of capital
3facilities, including but not limited to those required for
4special education building projects provided for in Article 14
5of The School Code, consisting of buildings, structures, and
6durable equipment, and for the acquisition and improvement of
7real property and interests in real property required, or
8expected to be required, in connection therewith.
9    (b) $22,550,000, or so much thereof as may be necessary,
10for grants to school districts for the making of principal and
11interest payments, required to be made, on bonds issued by such
12school districts after January 1, 1969, pursuant to any
13indenture, ordinance, resolution, agreement or contract to
14provide funds for the acquisition, development, construction,
15reconstruction, rehabilitation, improvement, architectural
16planning and installation of capital facilities consisting of
17buildings, structures, durable equipment and land for
18educational purposes or for lease payments required to be made
19by a school district for principal and interest payments on
20bonds issued by a Public Building Commission after January 1,
211969.
22    (c) $10,000,000 for grants to school districts for the
23acquisition, development, construction, reconstruction,
24rehabilitation, improvement, architectural planning and
25installation of capital facilities consisting of buildings
26structures, durable equipment and land for special education

 

 

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1building projects.
2    (d) $9,000,000 for grants to school districts for the
3reconstruction, rehabilitation, improvement, financing and
4architectural planning of capital facilities, including
5construction at another location to replace such capital
6facilities, consisting of those public school buildings and
7temporary school facilities which, prior to January 1, 1984,
8were condemned by the regional superintendent under Section
93-14.22 of The School Code or by any State official having
10jurisdiction over building safety.
11    (e) $3,050,000,000 for grants to school districts for
12school improvement projects authorized by the School
13Construction Law. The bonds shall be sold in amounts not to
14exceed the following schedule, except any bonds not sold during
15one year shall be added to the bonds to be sold during the
16remainder of the schedule:
17    First year...................................$200,000,000
18    Second year..................................$450,000,000
19    Third year...................................$500,000,000
20    Fourth year..................................$500,000,000
21    Fifth year...................................$800,000,000
22    Sixth year and thereafter....................$600,000,000
23    (f) $1,066,000,000 $420,000,000 grants to school districts
24for school implemented projects authorized by the School
25Construction Law.
26(Source: P.A. 96-36, eff. 7-13-09.)
 

 

 

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1    (30 ILCS 330/6)  (from Ch. 127, par. 656)
2    Sec. 6. Anti-Pollution.
3    (a) The amount of $422,815,000 $369,815,000 is authorized
4for allocation by the Environmental Protection Agency for
5grants or loans to units of local government in such amounts,
6at such times and for such purpose as the Agency deems
7necessary or desirable for the planning, financing, and
8construction of municipal sewage treatment works and solid
9waste disposal facilities and for making of deposits into the
10Water Revolving Fund and the U.S. Environmental Protection Fund
11to provide assistance in accordance with the provisions of
12Title IV-A of the Environmental Protection Act.
13    (b) The amount of $236,500,000 $215,500,000 is authorized
14for allocation by the Environmental Protection Agency for
15payment of claims submitted to the State and approved for
16payment under the Leaking Underground Storage Tank Program
17established in Title XVI of the Environmental Protection Act.
18(Source: P.A. 96-36, eff. 7-13-09.)
 
19    (30 ILCS 330/7)  (from Ch. 127, par. 657)
20    Sec. 7. Coal and Energy Development. The amount of
21$698,200,000 is authorized to be used by the Department of
22Commerce and Economic Opportunity (formerly Department of
23Commerce and Community Affairs) for coal and energy development
24purposes, pursuant to Sections 2, 3 and 3.1 of the Illinois

 

 

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1Coal and Energy Development Bond Act, for the purposes
2specified in Section 8.1 of the Energy Conservation and Coal
3Development Act, for the purposes specified in Section 605-332
4of the Department of Commerce and Economic Opportunity Law of
5the Civil Administrative Code of Illinois, and for the purpose
6of facility cost reports prepared pursuant to Sections 1-58 or
71-75(d)(4) of the Illinois Power Agency Act and for the purpose
8of development costs pursuant to Section 8.1 of the Energy
9Conservation and Coal Development Act. Of this amount:
10    (a) $115,000,000 is for the specific purposes of
11acquisition, development, construction, reconstruction,
12improvement, financing, architectural and technical planning
13and installation of capital facilities consisting of
14buildings, structures, durable equipment, and land for the
15purpose of capital development of coal resources within the
16State and for the purposes specified in Section 8.1 of the
17Energy Conservation and Coal Development Act;
18    (b) $35,000,000 is for the purposes specified in Section
198.1 of the Energy Conservation and Coal Development Act and
20making grants to generating stations and coal gasification
21facilities within the State of Illinois and to the owner of a
22generating station located in Illinois and having at least
23three coal-fired generating units with accredited summer
24capability greater than 500 megawatts each at such generating
25station as provided in Section 6 of that Bond Act;
26    (c) $13,200,000 is for research, development and

 

 

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1demonstration of forms of energy other than that derived from
2coal, either on or off State property;
3    (d) $500,000,000 is for the purpose of providing financial
4assistance to new electric generating facilities as provided in
5Section 605-332 of the Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois;
7and
8    (e) $50,000,000 $35,000,000 is for the purpose of facility
9cost reports prepared for not more than one facility pursuant
10to Section 1-75(d)(4) of the Illinois Power Agency Act and not
11more than one facility pursuant to Section 1-58 of the Illinois
12Power Agency Act and for the purpose of up to $6,000,000 of
13development costs pursuant to Section 8.1 of the Energy
14Conservation and Coal Development Act.
15(Source: P.A. 95-1026, eff. 1-12-09; 96-781, eff. 8-28-09;
1696-1000, eff. 7-2-10; 96-1465, eff. 8-20-10.)
 
17    (30 ILCS 330/9)  (from Ch. 127, par. 659)
18    Sec. 9. Conditions for Issuance and Sale of Bonds -
19Requirements for Bonds.
20    (a) Except as otherwise provided in this subsection, Bonds
21shall be issued and sold from time to time, in one or more
22series, in such amounts and at such prices as may be directed
23by the Governor, upon recommendation by the Director of the
24Governor's Office of Management and Budget. Bonds shall be in
25such form (either coupon, registered or book entry), in such

 

 

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1denominations, payable within 25 years from their date, subject
2to such terms of redemption with or without premium, bear
3interest payable at such times and at such fixed or variable
4rate or rates, and be dated as shall be fixed and determined by
5the Director of the Governor's Office of Management and Budget
6in the order authorizing the issuance and sale of any series of
7Bonds, which order shall be approved by the Governor and is
8herein called a "Bond Sale Order"; provided however, that
9interest payable at fixed or variable rates shall not exceed
10that permitted in the Bond Authorization Act, as now or
11hereafter amended. Bonds shall be payable at such place or
12places, within or without the State of Illinois, and may be
13made registrable as to either principal or as to both principal
14and interest, as shall be specified in the Bond Sale Order.
15Bonds may be callable or subject to purchase and retirement or
16tender and remarketing as fixed and determined in the Bond Sale
17Order. Bonds, other than Bonds issued under Section 3 of this
18Act for the costs associated with the purchase and
19implementation of information technology, (i) except for
20refunding Bonds satisfying the requirements of Section 16 of
21this Act and sold during fiscal year 2009, 2010, or 2011, must
22be issued with principal or mandatory redemption amounts in
23equal amounts, with the first maturity issued occurring within
24the fiscal year in which the Bonds are issued or within the
25next succeeding fiscal year and (ii) must mature or be subject
26to mandatory redemption each fiscal year thereafter up to 25

 

 

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1years, except for refunding Bonds satisfying the requirements
2of Section 16 of this Act and sold during fiscal year 2009,
32010, or 2011 which must mature or be subject to mandatory
4redemption each fiscal year thereafter up to 16 years. Bonds
5issued under Section 3 of this Act for the costs associated
6with the purchase and implementation of information technology
7must be issued with principal or mandatory redemption amounts
8in equal amounts, with the first maturity issued occurring with
9the fiscal year in which the respective bonds are issued or
10with the next succeeding fiscal year, with the respective bonds
11issued maturing or subject to mandatory redemption each fiscal
12year thereafter up to 10 years. Notwithstanding any provision
13of this Act to the contrary, the Bonds authorized by Public Act
1496-43 shall be payable within 5 years from their date and must
15be issued with principal or mandatory redemption amounts in
16equal amounts, with payment of principal or mandatory
17redemption beginning in the first fiscal year following the
18fiscal year in which the Bonds are issued.
19    In the case of any series of Bonds bearing interest at a
20variable interest rate ("Variable Rate Bonds"), in lieu of
21determining the rate or rates at which such series of Variable
22Rate Bonds shall bear interest and the price or prices at which
23such Variable Rate Bonds shall be initially sold or remarketed
24(in the event of purchase and subsequent resale), the Bond Sale
25Order may provide that such interest rates and prices may vary
26from time to time depending on criteria established in such

 

 

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1Bond Sale Order, which criteria may include, without
2limitation, references to indices or variations in interest
3rates as may, in the judgment of a remarketing agent, be
4necessary to cause Variable Rate Bonds of such series to be
5remarketable from time to time at a price equal to their
6principal amount, and may provide for appointment of a bank,
7trust company, investment bank, or other financial institution
8to serve as remarketing agent in that connection. The Bond Sale
9Order may provide that alternative interest rates or provisions
10for establishing alternative interest rates, different
11security or claim priorities, or different call or amortization
12provisions will apply during such times as Variable Rate Bonds
13of any series are held by a person providing credit or
14liquidity enhancement arrangements for such Bonds as
15authorized in subsection (b) of this Section. The Bond Sale
16Order may also provide for such variable interest rates to be
17established pursuant to a process generally known as an auction
18rate process and may provide for appointment of one or more
19financial institutions to serve as auction agents and
20broker-dealers in connection with the establishment of such
21interest rates and the sale and remarketing of such Bonds.
22    (b) In connection with the issuance of any series of Bonds,
23the State may enter into arrangements to provide additional
24security and liquidity for such Bonds, including, without
25limitation, bond or interest rate insurance or letters of
26credit, lines of credit, bond purchase contracts, or other

 

 

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1arrangements whereby funds are made available to retire or
2purchase Bonds, thereby assuring the ability of owners of the
3Bonds to sell or redeem their Bonds. The State may enter into
4contracts and may agree to pay fees to persons providing such
5arrangements, but only under circumstances where the Director
6of the Governor's Office of Management and Budget certifies
7that he or she reasonably expects the total interest paid or to
8be paid on the Bonds, together with the fees for the
9arrangements (being treated as if interest), would not, taken
10together, cause the Bonds to bear interest, calculated to their
11stated maturity, at a rate in excess of the rate that the Bonds
12would bear in the absence of such arrangements.
13    The State may, with respect to Bonds issued or anticipated
14to be issued, participate in and enter into arrangements with
15respect to interest rate protection or exchange agreements,
16guarantees, or financial futures contracts for the purpose of
17limiting, reducing, or managing interest rate exposure. The
18authority granted under this paragraph, however, shall not
19increase the principal amount of Bonds authorized to be issued
20by law. The arrangements may be executed and delivered by the
21Director of the Governor's Office of Management and Budget on
22behalf of the State. Net payments for such arrangements shall
23constitute interest on the Bonds and shall be paid from the
24General Obligation Bond Retirement and Interest Fund. The
25Director of the Governor's Office of Management and Budget
26shall at least annually certify to the Governor and the State

 

 

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1Comptroller his or her estimate of the amounts of such net
2payments to be included in the calculation of interest required
3to be paid by the State.
4    (c) Prior to the issuance of any Variable Rate Bonds
5pursuant to subsection (a), the Director of the Governor's
6Office of Management and Budget shall adopt an interest rate
7risk management policy providing that the amount of the State's
8variable rate exposure with respect to Bonds shall not exceed
920%. This policy shall remain in effect while any Bonds are
10outstanding and the issuance of Bonds shall be subject to the
11terms of such policy. The terms of this policy may be amended
12from time to time by the Director of the Governor's Office of
13Management and Budget but in no event shall any amendment cause
14the permitted level of the State's variable rate exposure with
15respect to Bonds to exceed 20%.
16    (d) "Build America Bonds" in this Section means Bonds
17authorized by Section 54AA of the Internal Revenue Code of
181986, as amended ("Internal Revenue Code"), and bonds issued
19from time to time to refund or continue to refund "Build
20America Bonds".
21    (e) Notwithstanding any other provision of this Section,
22Qualified School Construction Bonds shall be issued and sold
23from time to time, in one or more series, in such amounts and
24at such prices as may be directed by the Governor, upon
25recommendation by the Director of the Governor's Office of
26Management and Budget. Qualified School Construction Bonds

 

 

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1shall be in such form (either coupon, registered or book
2entry), in such denominations, payable within 25 years from
3their date, subject to such terms of redemption with or without
4premium, and if the Qualified School Construction Bonds are
5issued with a supplemental coupon, bear interest payable at
6such times and at such fixed or variable rate or rates, and be
7dated as shall be fixed and determined by the Director of the
8Governor's Office of Management and Budget in the order
9authorizing the issuance and sale of any series of Qualified
10School Construction Bonds, which order shall be approved by the
11Governor and is herein called a "Bond Sale Order"; except that
12interest payable at fixed or variable rates, if any, shall not
13exceed that permitted in the Bond Authorization Act, as now or
14hereafter amended. Qualified School Construction Bonds shall
15be payable at such place or places, within or without the State
16of Illinois, and may be made registrable as to either principal
17or as to both principal and interest, as shall be specified in
18the Bond Sale Order. Qualified School Construction Bonds may be
19callable or subject to purchase and retirement or tender and
20remarketing as fixed and determined in the Bond Sale Order.
21Qualified School Construction Bonds must be issued with
22principal or mandatory redemption amounts or sinking fund
23payments into the General Obligation Bond Retirement and
24Interest Fund (or subaccount therefor) in equal amounts, with
25the first maturity issued, mandatory redemption payment or
26sinking fund payment occurring within the fiscal year in which

 

 

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1the Qualified School Construction Bonds are issued or within
2the next succeeding fiscal year, with Qualified School
3Construction Bonds issued maturing or subject to mandatory
4redemption or with sinking fund payments thereof deposited each
5fiscal year thereafter up to 25 years. Sinking fund payments
6set forth in this subsection shall be permitted only to the
7extent authorized in Section 54F of the Internal Revenue Code
8or as otherwise determined by the Director of the Governor's
9Office of Management and Budget. "Qualified School
10Construction Bonds" in this subsection means Bonds authorized
11by Section 54F of the Internal Revenue Code and for bonds
12issued from time to time to refund or continue to refund such
13"Qualified School Construction Bonds".
14    (f) Beginning with the next issuance by the Governor's
15Office of Management and Budget to the Procurement Policy Board
16of a request for quotation for the purpose of formulating a new
17pool of qualified underwriting banks list, all entities
18responding to such a request for quotation for inclusion on
19that list shall provide a written report to the Governor's
20Office of Management and Budget and the Illinois Comptroller.
21The written report submitted to the Comptroller shall (i) be
22published on the Comptroller's Internet website and (ii) be
23used by the Governor's Office of Management and Budget for the
24purposes of scoring such a request for quotation. The written
25report, at a minimum, shall:
26        (1) indicate any data pertinent to the previous 3

 

 

09600HB5960sam002- 21 -LRB096 17668 PJG 44822 a

1    months, pursuant to credit default swap market-making
2    activities, including disclosure of the firm's entry into
3    any State of Illinois credit default swaps ("CDS");
4        (2) include, in the event of State of Illinois CDS
5    activity, disclosure of the firm's cumulative notional
6    volume of State of Illinois CDS trades and the firm's
7    outstanding gross and net notional amount of State of
8    Illinois CDS, as of the end of the current 3-month period;
9        (3) indicate, pursuant to the firm's proprietary
10    trading activities, disclosure of whether the firm, within
11    the past 3 months, has entered into any proprietary trades
12    for its own account in State of Illinois CDS;
13        (4) include, in the event of State of Illinois
14    proprietary trades, disclosure of the firm's outstanding
15    gross and net notional amount of proprietary State of
16    Illinois CDS and whether the net position is short or long
17    credit protection, as of the end of the current 3-month
18    period;
19        (5) list all time periods during the past 3 months
20    during which the firm held net long or net short
21    proprietary credit protection positions, the amount of
22    such positions, and whether those positions were net long
23    or net short credit protection positions; and
24        (6) indicate whether, within the previous 3 months, the
25    firm released any publicly available research or marketing
26    reports that reference State of Illinois CDS and include

 

 

09600HB5960sam002- 22 -LRB096 17668 PJG 44822 a

1    those research or marketing reports as attachments.
2    (g) All entities included on a Governor's Office of
3Management and Budget's pool of qualified underwriting banks
4list shall, as soon as possible after the effective date of
5this amendatory Act of the 96th General Assembly, but not later
6than January 21, 2011, and on a quarterly fiscal basis
7thereafter, provide a written report to the Governor's Office
8of Management and Budget and the Illinois Comptroller. The
9written reports submitted to the Comptroller shall be published
10on the Comptroller's Internet website. The written reports, at
11a minimum, shall:
12        (1) indicate any data pertinent to the previous 3
13    months, pursuant to credit default swap market-making
14    activities, including disclosure of the firm's entry into
15    any State of Illinois credit default swaps ("CDS");
16        (2) include, in the event of State of Illinois CDS
17    activity, disclosure of the firm's cumulative notional
18    volume of State of Illinois CDS trades and the firm's
19    outstanding gross and net notional amount of State of
20    Illinois CDS, as of the end of the current 3-month period;
21        (3) indicate, pursuant to the firm's proprietary
22    trading activities, disclosure of whether the firm, within
23    the past 3 months, has entered into any proprietary trades
24    for its own account in State of Illinois CDS;
25        (4) include, in the event of State of Illinois
26    proprietary trades, disclosure of the firm's outstanding

 

 

09600HB5960sam002- 23 -LRB096 17668 PJG 44822 a

1    gross and net notional amount of proprietary State of
2    Illinois CDS and whether the net position is short or long
3    credit protection, as of the end of the current 3-month
4    period;
5        (5) list all time periods during the past 3 months
6    during which the firm held net long or net short
7    proprietary credit protection positions, the amount of
8    such positions, and whether those positions were net long
9    or net short credit protection positions; and
10        (6) indicate whether, within the previous 3 months, the
11    firm released any publicly available research or marketing
12    reports that reference State of Illinois CDS and include
13    those research or marketing reports as attachments.
14(Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43,
15eff. 7-15-09; 96-828, eff. 12-2-09.)
 
16    Section 10. The Build Illinois Bond Act is amended by
17changing Sections 2 and 4 as follows:
 
18    (30 ILCS 425/2)  (from Ch. 127, par. 2802)
19    Sec. 2. Authorization for Bonds. The State of Illinois is
20authorized to issue, sell and provide for the retirement of
21limited obligation bonds, notes and other evidences of
22indebtedness of the State of Illinois in the total principal
23amount of $5,703,509,000 $4,615,509,000 herein called "Bonds".
24Such authorized amount of Bonds shall be reduced from time to

 

 

09600HB5960sam002- 24 -LRB096 17668 PJG 44822 a

1time by amounts, if any, which are equal to the moneys received
2by the Department of Revenue in any fiscal year pursuant to
3Section 3-1001 of the "Illinois Vehicle Code", as amended, in
4excess of the Annual Specified Amount (as defined in Section 3
5of the "Retailers' Occupation Tax Act", as amended) and
6transferred at the end of such fiscal year from the General
7Revenue Fund to the Build Illinois Purposes Fund (now
8abolished) as provided in Section 3-1001 of said Code;
9provided, however, that no such reduction shall affect the
10validity or enforceability of any Bonds issued prior to such
11reduction. Such amount of authorized Bonds shall be exclusive
12of any refunding Bonds issued pursuant to Section 15 of this
13Act and exclusive of any Bonds issued pursuant to this Section
14which are redeemed, purchased, advance refunded, or defeased in
15accordance with paragraph (f) of Section 4 of this Act. Bonds
16shall be issued for the categories and specific purposes
17expressed in Section 4 of this Act.
18(Source: P.A. 96-36, eff. 7-13-09.)
 
19    (30 ILCS 425/4)  (from Ch. 127, par. 2804)
20    Sec. 4. Purposes of Bonds. Bonds shall be issued for the
21following purposes and in the approximate amounts as set forth
22below:
23    (a) $3,213,000,000 $2,917,000,000 for the expenses of
24issuance and sale of Bonds, including bond discounts, and for
25planning, engineering, acquisition, construction,

 

 

09600HB5960sam002- 25 -LRB096 17668 PJG 44822 a

1reconstruction, development, improvement and extension of the
2public infrastructure in the State of Illinois, including: the
3making of loans or grants to local governments for waste
4disposal systems, water and sewer line extensions and water
5distribution and purification facilities, rail or air or water
6port improvements, gas and electric utility extensions,
7publicly owned industrial and commercial sites, buildings used
8for public administration purposes and other public
9infrastructure capital improvements; the making of loans or
10grants to units of local government for financing and
11construction of wastewater facilities, including grants to
12serve unincorporated areas; refinancing or retiring bonds
13issued between January 1, 1987 and January 1, 1990 by home rule
14municipalities, debt service on which is provided from a tax
15imposed by home rule municipalities prior to January 1, 1990 on
16the sale of food and drugs pursuant to Section 8-11-1 of the
17Home Rule Municipal Retailers' Occupation Tax Act or Section
188-11-5 of the Home Rule Municipal Service Occupation Tax Act;
19the making of deposits not to exceed $70,000,000 in the
20aggregate into the Water Pollution Control Revolving Fund to
21provide assistance in accordance with the provisions of Title
22IV-A of the Environmental Protection Act; the planning,
23engineering, acquisition, construction, reconstruction,
24alteration, expansion, extension and improvement of highways,
25bridges, structures separating highways and railroads, rest
26areas, interchanges, access roads to and from any State or

 

 

09600HB5960sam002- 26 -LRB096 17668 PJG 44822 a

1local highway and other transportation improvement projects
2which are related to economic development activities; the
3making of loans or grants for planning, engineering,
4rehabilitation, improvement or construction of rail and
5transit facilities; the planning, engineering, acquisition,
6construction, reconstruction and improvement of watershed,
7drainage, flood control, recreation and related improvements
8and facilities, including expenses related to land and easement
9acquisition, relocation, control structures, channel work and
10clearing and appurtenant work; the making of grants for
11improvement and development of zoos and park district field
12houses and related structures; and the making of grants for
13improvement and development of Navy Pier and related
14structures.
15    (b) $541,000,000 $196,000,000 for fostering economic
16development and increased employment and the well being of the
17citizens of Illinois, including: the making of grants for
18improvement and development of McCormick Place and related
19structures; the planning and construction of a
20microelectronics research center, including the planning,
21engineering, construction, improvement, renovation and
22acquisition of buildings, equipment and related utility
23support systems; the making of loans to businesses and
24investments in small businesses; acquiring real properties for
25industrial or commercial site development; acquiring,
26rehabilitating and reconveying industrial and commercial

 

 

09600HB5960sam002- 27 -LRB096 17668 PJG 44822 a

1properties for the purpose of expanding employment and
2encouraging private and other public sector investment in the
3economy of Illinois; the payment of expenses associated with
4siting the Superconducting Super Collider Particle Accelerator
5in Illinois and with its acquisition, construction,
6maintenance, operation, promotion and support; the making of
7loans for the planning, engineering, acquisition,
8construction, improvement and conversion of facilities and
9equipment which will foster the use of Illinois coal; the
10payment of expenses associated with the promotion,
11establishment, acquisition and operation of small business
12incubator facilities and agribusiness research facilities,
13including the lease, purchase, renovation, planning,
14engineering, construction and maintenance of buildings,
15utility support systems and equipment designated for such
16purposes and the establishment and maintenance of centralized
17support services within such facilities; and the making of
18grants or loans to units of local government for Urban
19Development Action Grant and Housing Partnership programs.
20    (c) $1,741,358,100 $1,352,358,100 for the development and
21improvement of educational, scientific, technical and
22vocational programs and facilities and the expansion of health
23and human services for all citizens of Illinois, including: the
24making of construction and improvement grants and loans to
25public libraries and library systems; the making of grants and
26loans for planning, engineering, acquisition and construction

 

 

09600HB5960sam002- 28 -LRB096 17668 PJG 44822 a

1of a new State central library in Springfield; the planning,
2engineering, acquisition and construction of an animal and
3dairy sciences facility; the planning, engineering,
4acquisition and construction of a campus and all related
5buildings, facilities, equipment and materials for Richland
6Community College; the acquisition, rehabilitation and
7installation of equipment and materials for scientific and
8historical surveys; the making of grants or loans for
9distribution to eligible vocational education instructional
10programs for the upgrading of vocational education programs,
11school shops and laboratories, including the acquisition,
12rehabilitation and installation of technical equipment and
13materials; the making of grants or loans for distribution to
14eligible local educational agencies for the upgrading of math
15and science instructional programs, including the acquisition
16of instructional equipment and materials; miscellaneous
17capital improvements for universities and community colleges
18including the planning, engineering, construction,
19reconstruction, remodeling, improvement, repair and
20installation of capital facilities and costs of planning,
21supplies, equipment, materials, services, and all other
22required expenses; the making of grants or loans for repair,
23renovation and miscellaneous capital improvements for
24privately operated colleges and universities and community
25colleges, including the planning, engineering, acquisition,
26construction, reconstruction, remodeling, improvement, repair

 

 

09600HB5960sam002- 29 -LRB096 17668 PJG 44822 a

1and installation of capital facilities and costs of planning,
2supplies, equipment, materials, services, and all other
3required expenses; and the making of grants or loans for
4distribution to local governments for hospital and other health
5care facilities including the planning, engineering,
6acquisition, construction, reconstruction, remodeling,
7improvement, repair and installation of capital facilities and
8costs of planning, supplies, equipment, materials, services
9and all other required expenses.
10    (d) $208,150,900 $150,150,900 for protection,
11preservation, restoration and conservation of environmental
12and natural resources, including: the making of grants to soil
13and water conservation districts for the planning and
14implementation of conservation practices and for funding
15contracts with the Soil Conservation Service for watershed
16planning; the making of grants to units of local government for
17the capital development and improvement of recreation areas,
18including planning and engineering costs, sewer projects,
19including planning and engineering costs and water projects,
20including planning and engineering costs, and for the
21acquisition of open space lands, including the acquisition of
22easements and other property interests of less than fee simple
23ownership; the acquisition and related costs and development
24and management of natural heritage lands, including natural
25areas and areas providing habitat for endangered species and
26nongame wildlife, and buffer area lands; the acquisition and

 

 

09600HB5960sam002- 30 -LRB096 17668 PJG 44822 a

1related costs and development and management of habitat lands,
2including forest, wildlife habitat and wetlands; and the
3removal and disposition of hazardous substances, including the
4cost of project management, equipment, laboratory analysis,
5and contractual services necessary for preventative and
6corrective actions related to the preservation, restoration
7and conservation of the environment, including deposits not to
8exceed $60,000,000 in the aggregate into the Hazardous Waste
9Fund and the Brownfields Redevelopment Fund for improvements in
10accordance with the provisions of Titles V and XVII of the
11Environmental Protection Act.
12    (e) The amount specified in paragraph (a) above shall
13include an amount necessary to pay reasonable expenses of each
14issuance and sale of the Bonds, as specified in the related
15Bond Sale Order (hereinafter defined).
16    (f) Any unexpended proceeds from any sale of Bonds which
17are held in the Build Illinois Bond Fund may be used to redeem,
18purchase, advance refund, or defease any Bonds outstanding.
19(Source: P.A. 96-36, eff. 7-13-09; 96-503, eff. 8-14-09;
2096-1000, eff. 7-2-10.)
 
21    Section 15. The Illinois Pension Code is amended by
22changing Sections 1-113.14, 2-124, 14-131, 15-155, 16-158,
2318-131, and 22A-111 and by adding Section 1-113.15 as follows:
 
24    (40 ILCS 5/1-113.14)

 

 

09600HB5960sam002- 31 -LRB096 17668 PJG 44822 a

1    Sec. 1-113.14. Investment services for retirement systems,
2pension funds, and investment boards, except those funds
3established under Articles 3 and 4.
4    (a) For the purposes of this Section, "investment services"
5means services provided by an investment adviser or a
6consultant other than qualified fund-of-fund management
7services as defined in Section 1-113.15.
8    (b) The selection and appointment of an investment adviser
9or consultant for investment services by the board of a
10retirement system, pension fund, or investment board subject to
11this Code, except those whose investments are restricted by
12Section 1-113.2, shall be made and awarded in accordance with
13this Section. All contracts for investment services shall be
14awarded by the board using a competitive process that is
15substantially similar to the process required for the
16procurement of professional and artistic services under
17Article 35 of the Illinois Procurement Code. Each board of
18trustees shall adopt a policy in accordance with this
19subsection (b) within 60 days after the effective date of this
20amendatory Act of the 96th General Assembly. The policy shall
21be posted on its web site and filed with the Illinois
22Procurement Policy Board. Exceptions to this Section are
23allowed for (i) sole source procurements, (ii) emergency
24procurements, and (iii) at the discretion of the pension fund,
25retirement system, or board of investment, contracts that are
26nonrenewable and one year or less in duration, so long as the

 

 

09600HB5960sam002- 32 -LRB096 17668 PJG 44822 a

1contract has a value of less than $20,000. All exceptions
2granted under this Section must be published on the system's,
3fund's, or board's web site, shall name the person authorizing
4the procurement, and shall include a brief explanation of the
5reason for the exception.
6    A person, other than a trustee or an employee of a
7retirement system, pension fund, or investment board, may not
8act as a consultant or investment adviser under this Section
9unless that person is registered as an investment adviser under
10the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1,
11et seq.) or a bank, as defined in the federal Investment
12Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.).
13    (c) Investment services provided by an investment adviser
14or a consultant appointed under this Section shall be rendered
15pursuant to a written contract between the investment adviser
16or consultant and the board.
17    The contract shall include all of the following:
18        (1) Acknowledgement in writing by the investment
19    adviser or consultant that he or she is a fiduciary with
20    respect to the pension fund or retirement system.
21        (2) The description of the board's investment policy
22    and notice that the policy is subject to change.
23        (3) (i) Full disclosure of direct and indirect fees,
24    commissions, penalties, and other compensation, including
25    reimbursement for expenses, that may be paid by or on
26    behalf of the consultant in connection with the provision

 

 

09600HB5960sam002- 33 -LRB096 17668 PJG 44822 a

1    of services to the pension fund or retirement system and
2    (ii) a requirement that the consultant update the
3    disclosure promptly after a modification of those payments
4    or an additional payment.
5        (4) A requirement that the investment adviser or
6    consultant, in conjunction with the board's staff, submit
7    periodic written reports, on at least a quarterly basis,
8    for the board's review at its regularly scheduled meetings.
9    All returns on investment shall be reported as net returns
10    after payment of all fees, commissions, and any other
11    compensation.
12        (5) Disclosure of the names and addresses of (i) the
13    consultant or investment adviser; (ii) any entity that is a
14    parent of, or owns a controlling interest in, the
15    consultant or investment adviser; (iii) any entity that is
16    a subsidiary of, or in which a controlling interest is
17    owned by, the consultant or investment adviser; (iv) any
18    persons who have an ownership or distributive income share
19    in the consultant or investment adviser that is in excess
20    of 7.5%; or (v) serves as an executive officer of the
21    consultant or investment adviser.
22        (6) A disclosure of the names and addresses of all
23    subcontractors, if applicable, and the expected amount of
24    money each will receive under the contract, including an
25    acknowledgment that the contractor must promptly make
26    notification, in writing, if at any time during the term of

 

 

09600HB5960sam002- 34 -LRB096 17668 PJG 44822 a

1    the contract a contractor adds or changes any
2    subcontractors. For purposes of this subparagraph (6),
3    "subcontractor" does not include non-investment related
4    professionals or professionals offering services that are
5    not directly related to the investment of assets, such as
6    legal counsel, actuary, proxy-voting services, services
7    used to track compliance with legal standards, and
8    investment fund of funds where the board has no direct
9    contractual relationship with the investment advisers or
10    partnerships.
11        (7) A description of service to be performed.
12        (8) A description of the need for the service.
13        (9) A description of the plan for post-performance
14    review.
15        (10) A description of the qualifications necessary.
16        (11) The duration of the contract.
17        (12) The method for charging and measuring cost.
18    (d) Notwithstanding any other provision of law, a
19retirement system, pension fund, or investment board subject to
20this Code, except those whose investments are restricted by
21Section 1-113.2 of this Code, shall not enter into a contract
22with a consultant that exceeds 5 years in duration. No contract
23to provide consulting services may be renewed or extended. At
24the end of the term of a contract, however, the consultant is
25eligible to compete for a new contract as provided in this
26Section. No retirement system, pension fund, or investment

 

 

09600HB5960sam002- 35 -LRB096 17668 PJG 44822 a

1board shall attempt to avoid or contravene the restrictions of
2this subsection (d) by any means.
3    (e) Within 60 days after the effective date of this
4amendatory Act of the 96th General Assembly, each investment
5adviser or consultant currently providing services or subject
6to an existing contract for the provision of services must
7disclose to the board of trustees all direct and indirect fees,
8commissions, penalties, and other compensation paid by or on
9behalf of the investment adviser or consultant in connection
10with the provision of those services and shall update that
11disclosure promptly after a modification of those payments or
12an additional payment. The person shall update the disclosure
13promptly after a modification of those payments or an
14additional payment. The disclosures required by this
15subsection (e) shall be in writing and shall include the date
16and amount of each payment and the name and address of each
17recipient of a payment.
18    (f) The retirement system, pension fund, or board of
19investment shall develop uniform documents that shall be used
20for the solicitation, review, and acceptance of all investment
21services. The form shall include the terms contained in
22subsection (c) of this Section. All such uniform documents
23shall be posted on the retirement system's, pension fund's, or
24investment board's web site.
25    (g) A description of every contract for investment services
26shall be posted in a conspicuous manner on the web site of the

 

 

09600HB5960sam002- 36 -LRB096 17668 PJG 44822 a

1retirement system, pension fund, or investment board. The
2description must include the name of the person or entity
3awarded a contract, the total amount applicable to the
4contract, the total fees paid or to be paid, and a disclosure
5approved by the board describing the factors that contributed
6to the selection of an investment adviser or consultant.
7(Source: P.A. 96-6, eff. 4-3-09.)
 
8    (40 ILCS 5/1-113.15 new)
9    Sec. 1-113.15. Qualified fund-of-fund management services.
10    (a) As used in this Section:
11    "Qualified fund-of-fund management services" means either
12(i) the services of an investment adviser acting in its
13capacity as an investment manager of a fund-of-funds or (ii) an
14investment adviser acting in its capacity as an investment
15manager of a separate account that is invested on a
16side-by-side basis in a substantially identical manner to a
17fund-of-funds, in each case pursuant to qualified written
18agreements.
19    "Qualified written agreements" means one or more written
20contracts to which the investment adviser and the board are
21parties and includes all of the following: (i) the matters
22described in items (1), (4), (5), (7), (11), and (12) of
23subsection (c) of Section 1-113.14; (ii) a description of any
24fees, commissions, penalties, and other compensation payable,
25if any, directly by the retirement system, pension fund, or

 

 

09600HB5960sam002- 37 -LRB096 17668 PJG 44822 a

1investment board (which shall not include any fees,
2commissions, penalties, and other compensation payable from
3the assets of the fund-of-funds or separate account); (iii) a
4description (or method of calculation) of the fees and expenses
5payable by the Fund to the investment adviser and the timing of
6the payment of the fees or expenses; and (iv) a description (or
7method of calculation) of any carried interest or other
8performance based interests, fees, or payments allocable by the
9Fund to the investment adviser or an affiliate of the
10investment adviser and the priority of distributions with
11respect to such interest.
12    (b) A description of every contract for qualified
13fund-of-fund management services must be posted in a
14conspicuous manner on the web site of the retirement system,
15pension fund, or investment board. The description must include
16the name of the fund-of-funds, the name of its investment
17adviser, the total investment commitment of the retirement
18system, pension fund, or investment board to invest in such
19fund-of-funds, and a disclosure approved by the board
20describing the factors that contributed to the investment in
21such fund-of-funds. No information that is exempt from
22inspection pursuant to Section 7 of the Freedom of Information
23Act shall be disclosed under this Section.
 
24    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
25    Sec. 2-124. Contributions by State.

 

 

09600HB5960sam002- 38 -LRB096 17668 PJG 44822 a

1    (a) The State shall make contributions to the System by
2appropriations of amounts which, together with the
3contributions of participants, interest earned on investments,
4and other income will meet the cost of maintaining and
5administering the System on a 90% funded basis in accordance
6with actuarial recommendations.
7    (b) The Board shall determine the amount of State
8contributions required for each fiscal year on the basis of the
9actuarial tables and other assumptions adopted by the Board and
10the prescribed rate of interest, using the formula in
11subsection (c).
12    (c) For State fiscal years 2011 through 2045, the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 90% of
16the total actuarial liabilities of the System by the end of
17State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22    For State fiscal years 1996 through 2005, the State
23contribution to the System, as a percentage of the applicable
24employee payroll, shall be increased in equal annual increments
25so that by State fiscal year 2011, the State is contributing at
26the rate required under this Section.

 

 

09600HB5960sam002- 39 -LRB096 17668 PJG 44822 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2006 is
3$4,157,000.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2007 is
6$5,220,300.
7    For each of State fiscal years 2008 through 2009, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10from the required State contribution for State fiscal year
112007, so that by State fiscal year 2011, the State is
12contributing at the rate otherwise required under this Section.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2010 is
15$10,454,000 and shall be made from the proceeds of bonds sold
16in fiscal year 2010 pursuant to Section 7.2 of the General
17Obligation Bond Act, less (i) the pro rata share of bond sale
18expenses determined by the System's share of total bond
19proceeds, (ii) any amounts received from the General Revenue
20Fund in fiscal year 2010, and (iii) any reduction in bond
21proceeds due to the issuance of discounted bonds, if
22applicable.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 90% of the total
26actuarial liabilities of the System.

 

 

09600HB5960sam002- 40 -LRB096 17668 PJG 44822 a

1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 90%. A reference in this Article to
10the "required State contribution" or any substantially similar
11term does not include or apply to any amounts payable to the
12System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Section, the
14required State contribution for State fiscal year 2005 and for
15fiscal year 2008 and each fiscal year thereafter, as calculated
16under this Section and certified under Section 2-134, shall not
17exceed an amount equal to (i) the amount of the required State
18contribution that would have been calculated under this Section
19for that fiscal year if the System had not received any
20payments under subsection (d) of Section 7.2 of the General
21Obligation Bond Act, minus (ii) the portion of the State's
22total debt service payments for that fiscal year on the bonds
23issued in fiscal year 2003 for the purposes of that Section
247.2, as determined and certified by the Comptroller, that is
25the same as the System's portion of the total moneys
26distributed under subsection (d) of Section 7.2 of the General

 

 

09600HB5960sam002- 41 -LRB096 17668 PJG 44822 a

1Obligation Bond Act. In determining this maximum for State
2fiscal years 2008 through 2010, however, the amount referred to
3in item (i) shall be increased, as a percentage of the
4applicable employee payroll, in equal increments calculated
5from the sum of the required State contribution for State
6fiscal year 2007 plus the applicable portion of the State's
7total debt service payments for fiscal year 2007 on the bonds
8issued in fiscal year 2003 for the purposes of Section 7.2 of
9the General Obligation Bond Act, so that, by State fiscal year
102011, the State is contributing at the rate otherwise required
11under this Section.
12    (d) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (e) For purposes of determining the required State
24contribution to the system for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the system's actuarially assumed rate of return.

 

 

09600HB5960sam002- 42 -LRB096 17668 PJG 44822 a

1(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
 
2    (40 ILCS 5/14-131)
3    Sec. 14-131. Contributions by State.
4    (a) The State shall make contributions to the System by
5appropriations of amounts which, together with other employer
6contributions from trust, federal, and other funds, employee
7contributions, investment income, and other income, will be
8sufficient to meet the cost of maintaining and administering
9the System on a 90% funded basis in accordance with actuarial
10recommendations.
11    For the purposes of this Section and Section 14-135.08,
12references to State contributions refer only to employer
13contributions and do not include employee contributions that
14are picked up or otherwise paid by the State or a department on
15behalf of the employee.
16    (b) The Board shall determine the total amount of State
17contributions required for each fiscal year on the basis of the
18actuarial tables and other assumptions adopted by the Board,
19using the formula in subsection (e).
20    The Board shall also determine a State contribution rate
21for each fiscal year, expressed as a percentage of payroll,
22based on the total required State contribution for that fiscal
23year (less the amount received by the System from
24appropriations under Section 8.12 of the State Finance Act and
25Section 1 of the State Pension Funds Continuing Appropriation

 

 

09600HB5960sam002- 43 -LRB096 17668 PJG 44822 a

1Act, if any, for the fiscal year ending on the June 30
2immediately preceding the applicable November 15 certification
3deadline), the estimated payroll (including all forms of
4compensation) for personal services rendered by eligible
5employees, and the recommendations of the actuary.
6    For the purposes of this Section and Section 14.1 of the
7State Finance Act, the term "eligible employees" includes
8employees who participate in the System, persons who may elect
9to participate in the System but have not so elected, persons
10who are serving a qualifying period that is required for
11participation, and annuitants employed by a department as
12described in subdivision (a)(1) or (a)(2) of Section 14-111.
13    (c) Contributions shall be made by the several departments
14for each pay period by warrants drawn by the State Comptroller
15against their respective funds or appropriations based upon
16vouchers stating the amount to be so contributed. These amounts
17shall be based on the full rate certified by the Board under
18Section 14-135.08 for that fiscal year. From the effective date
19of this amendatory Act of the 93rd General Assembly through the
20payment of the final payroll from fiscal year 2004
21appropriations, the several departments shall not make
22contributions for the remainder of fiscal year 2004 but shall
23instead make payments as required under subsection (a-1) of
24Section 14.1 of the State Finance Act. The several departments
25shall resume those contributions at the commencement of fiscal
26year 2005.

 

 

09600HB5960sam002- 44 -LRB096 17668 PJG 44822 a

1    (c-1) Notwithstanding subsection (c) of this Section, for
2fiscal year 2010 only, contributions by the several departments
3are not required to be made for General Revenue Funds payrolls
4processed by the Comptroller. Payrolls paid by the several
5departments from all other State funds must continue to be
6processed pursuant to subsection (c) of this Section.
7    (c-2) For State fiscal year 2010 only, on or as soon as
8possible after the 15th day of each month the Board shall
9submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the fiscal
11year 2010 General Revenue Fund appropriation to the System.
12    (d) If an employee is paid from trust funds or federal
13funds, the department or other employer shall pay employer
14contributions from those funds to the System at the certified
15rate, unless the terms of the trust or the federal-State
16agreement preclude the use of the funds for that purpose, in
17which case the required employer contributions shall be paid by
18the State. From the effective date of this amendatory Act of
19the 93rd General Assembly through the payment of the final
20payroll from fiscal year 2004 appropriations, the department or
21other employer shall not pay contributions for the remainder of
22fiscal year 2004 but shall instead make payments as required
23under subsection (a-1) of Section 14.1 of the State Finance
24Act. The department or other employer shall resume payment of
25contributions at the commencement of fiscal year 2005.
26    (e) For State fiscal years 2011 through 2045, the minimum

 

 

09600HB5960sam002- 45 -LRB096 17668 PJG 44822 a

1contribution to the System to be made by the State for each
2fiscal year shall be an amount determined by the System to be
3sufficient to bring the total assets of the System up to 90% of
4the total actuarial liabilities of the System by the end of
5State fiscal year 2045. In making these determinations, the
6required State contribution shall be calculated each year as a
7level percentage of payroll over the years remaining to and
8including fiscal year 2045 and shall be determined under the
9projected unit credit actuarial cost method.
10    For State fiscal years 1996 through 2005, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13so that by State fiscal year 2011, the State is contributing at
14the rate required under this Section; except that (i) for State
15fiscal year 1998, for all purposes of this Code and any other
16law of this State, the certified percentage of the applicable
17employee payroll shall be 5.052% for employees earning eligible
18creditable service under Section 14-110 and 6.500% for all
19other employees, notwithstanding any contrary certification
20made under Section 14-135.08 before the effective date of this
21amendatory Act of 1997, and (ii) in the following specified
22State fiscal years, the State contribution to the System shall
23not be less than the following indicated percentages of the
24applicable employee payroll, even if the indicated percentage
25will produce a State contribution in excess of the amount
26otherwise required under this subsection and subsection (a):

 

 

09600HB5960sam002- 46 -LRB096 17668 PJG 44822 a

19.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
22002; 10.6% in FY 2003; and 10.8% in FY 2004.
3    Notwithstanding any other provision of this Article, the
4total required State contribution to the System for State
5fiscal year 2006 is $203,783,900.
6    Notwithstanding any other provision of this Article, the
7total required State contribution to the System for State
8fiscal year 2007 is $344,164,400.
9    For each of State fiscal years 2008 through 2009, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12from the required State contribution for State fiscal year
132007, so that by State fiscal year 2011, the State is
14contributing at the rate otherwise required under this Section.
15    Notwithstanding any other provision of this Article, the
16total required State General Revenue Fund contribution for
17State fiscal year 2010 is $723,703,100 and shall be made from
18the proceeds of bonds sold in fiscal year 2010 pursuant to
19Section 7.2 of the General Obligation Bond Act, less (i) the
20pro rata share of bond sale expenses determined by the System's
21share of total bond proceeds, (ii) any amounts received from
22the General Revenue Fund in fiscal year 2010, and (iii) any
23reduction in bond proceeds due to the issuance of discounted
24bonds, if applicable.
25    Beginning in State fiscal year 2046, the minimum State
26contribution for each fiscal year shall be the amount needed to

 

 

09600HB5960sam002- 47 -LRB096 17668 PJG 44822 a

1maintain the total assets of the System at 90% of the total
2actuarial liabilities of the System.
3    Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 90%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15    Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter, as calculated
18under this Section and certified under Section 14-135.08, shall
19not exceed an amount equal to (i) the amount of the required
20State contribution that would have been calculated under this
21Section for that fiscal year if the System had not received any
22payments under subsection (d) of Section 7.2 of the General
23Obligation Bond Act, minus (ii) the portion of the State's
24total debt service payments for that fiscal year on the bonds
25issued in fiscal year 2003 for the purposes of that Section
267.2, as determined and certified by the Comptroller, that is

 

 

09600HB5960sam002- 48 -LRB096 17668 PJG 44822 a

1the same as the System's portion of the total moneys
2distributed under subsection (d) of Section 7.2 of the General
3Obligation Bond Act. In determining this maximum for State
4fiscal years 2008 through 2010, however, the amount referred to
5in item (i) shall be increased, as a percentage of the
6applicable employee payroll, in equal increments calculated
7from the sum of the required State contribution for State
8fiscal year 2007 plus the applicable portion of the State's
9total debt service payments for fiscal year 2007 on the bonds
10issued in fiscal year 2003 for the purposes of Section 7.2 of
11the General Obligation Bond Act, so that, by State fiscal year
122011, the State is contributing at the rate otherwise required
13under this Section.
14    (f) After the submission of all payments for eligible
15employees from personal services line items in fiscal year 2004
16have been made, the Comptroller shall provide to the System a
17certification of the sum of all fiscal year 2004 expenditures
18for personal services that would have been covered by payments
19to the System under this Section if the provisions of this
20amendatory Act of the 93rd General Assembly had not been
21enacted. Upon receipt of the certification, the System shall
22determine the amount due to the System based on the full rate
23certified by the Board under Section 14-135.08 for fiscal year
242004 in order to meet the State's obligation under this
25Section. The System shall compare this amount due to the amount
26received by the System in fiscal year 2004 through payments

 

 

09600HB5960sam002- 49 -LRB096 17668 PJG 44822 a

1under this Section and under Section 6z-61 of the State Finance
2Act. If the amount due is more than the amount received, the
3difference shall be termed the "Fiscal Year 2004 Shortfall" for
4purposes of this Section, and the Fiscal Year 2004 Shortfall
5shall be satisfied under Section 1.2 of the State Pension Funds
6Continuing Appropriation Act. If the amount due is less than
7the amount received, the difference shall be termed the "Fiscal
8Year 2004 Overpayment" for purposes of this Section, and the
9Fiscal Year 2004 Overpayment shall be repaid by the System to
10the Pension Contribution Fund as soon as practicable after the
11certification.
12    (g) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (h) For purposes of determining the required State
24contribution to the System for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the System's actuarially assumed rate of return.

 

 

09600HB5960sam002- 50 -LRB096 17668 PJG 44822 a

1    (i) After the submission of all payments for eligible
2employees from personal services line items paid from the
3General Revenue Fund in fiscal year 2010 have been made, the
4Comptroller shall provide to the System a certification of the
5sum of all fiscal year 2010 expenditures for personal services
6that would have been covered by payments to the System under
7this Section if the provisions of this amendatory Act of the
896th General Assembly had not been enacted. Upon receipt of the
9certification, the System shall determine the amount due to the
10System based on the full rate certified by the Board under
11Section 14-135.08 for fiscal year 2010 in order to meet the
12State's obligation under this Section. The System shall compare
13this amount due to the amount received by the System in fiscal
14year 2010 through payments under this Section. If the amount
15due is more than the amount received, the difference shall be
16termed the "Fiscal Year 2010 Shortfall" for purposes of this
17Section, and the Fiscal Year 2010 Shortfall shall be satisfied
18under Section 1.2 of the State Pension Funds Continuing
19Appropriation Act. If the amount due is less than the amount
20received, the difference shall be termed the "Fiscal Year 2010
21Overpayment" for purposes of this Section, and the Fiscal Year
222010 Overpayment shall be repaid by the System to the General
23Revenue Fund as soon as practicable after the certification.
24(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45,
25eff. 7-15-09; 96-1000, eff. 7-2-10.)
 

 

 

09600HB5960sam002- 51 -LRB096 17668 PJG 44822 a

1    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
2    Sec. 15-155. Employer contributions.
3    (a) The State of Illinois shall make contributions by
4appropriations of amounts which, together with the other
5employer contributions from trust, federal, and other funds,
6employee contributions, income from investments, and other
7income of this System, will be sufficient to meet the cost of
8maintaining and administering the System on a 90% funded basis
9in accordance with actuarial recommendations.
10    The Board shall determine the amount of State contributions
11required for each fiscal year on the basis of the actuarial
12tables and other assumptions adopted by the Board and the
13recommendations of the actuary, using the formula in subsection
14(a-1).
15    (a-1) For State fiscal years 2011 through 2045, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18sufficient to bring the total assets of the System up to 90% of
19the total actuarial liabilities of the System by the end of
20State fiscal year 2045. In making these determinations, the
21required State contribution shall be calculated each year as a
22level percentage of payroll over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    For State fiscal years 1996 through 2005, the State
26contribution to the System, as a percentage of the applicable

 

 

09600HB5960sam002- 52 -LRB096 17668 PJG 44822 a

1employee payroll, shall be increased in equal annual increments
2so that by State fiscal year 2011, the State is contributing at
3the rate required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2006 is
6$166,641,900.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2007 is
9$252,064,100.
10    For each of State fiscal years 2008 through 2009, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13from the required State contribution for State fiscal year
142007, so that by State fiscal year 2011, the State is
15contributing at the rate otherwise required under this Section.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2010 is
18$702,514,000 and shall be made from the State Pensions Fund and
19proceeds of bonds sold in fiscal year 2010 pursuant to Section
207.2 of the General Obligation Bond Act, less (i) the pro rata
21share of bond sale expenses determined by the System's share of
22total bond proceeds, (ii) any amounts received from the General
23Revenue Fund in fiscal year 2010, (iii) any reduction in bond
24proceeds due to the issuance of discounted bonds, if
25applicable.
26    Beginning in State fiscal year 2046, the minimum State

 

 

09600HB5960sam002- 53 -LRB096 17668 PJG 44822 a

1contribution for each fiscal year shall be the amount needed to
2maintain the total assets of the System at 90% of the total
3actuarial liabilities of the System.
4    Amounts received by the System pursuant to Section 25 of
5the Budget Stabilization Act or Section 8.12 of the State
6Finance Act in any fiscal year do not reduce and do not
7constitute payment of any portion of the minimum State
8contribution required under this Article in that fiscal year.
9Such amounts shall not reduce, and shall not be included in the
10calculation of, the required State contributions under this
11Article in any future year until the System has reached a
12funding ratio of at least 90%. A reference in this Article to
13the "required State contribution" or any substantially similar
14term does not include or apply to any amounts payable to the
15System under Section 25 of the Budget Stabilization Act.
16    Notwithstanding any other provision of this Section, the
17required State contribution for State fiscal year 2005 and for
18fiscal year 2008 and each fiscal year thereafter, as calculated
19under this Section and certified under Section 15-165, shall
20not exceed an amount equal to (i) the amount of the required
21State contribution that would have been calculated under this
22Section for that fiscal year if the System had not received any
23payments under subsection (d) of Section 7.2 of the General
24Obligation Bond Act, minus (ii) the portion of the State's
25total debt service payments for that fiscal year on the bonds
26issued in fiscal year 2003 for the purposes of that Section

 

 

09600HB5960sam002- 54 -LRB096 17668 PJG 44822 a

17.2, as determined and certified by the Comptroller, that is
2the same as the System's portion of the total moneys
3distributed under subsection (d) of Section 7.2 of the General
4Obligation Bond Act. In determining this maximum for State
5fiscal years 2008 through 2010, however, the amount referred to
6in item (i) shall be increased, as a percentage of the
7applicable employee payroll, in equal increments calculated
8from the sum of the required State contribution for State
9fiscal year 2007 plus the applicable portion of the State's
10total debt service payments for fiscal year 2007 on the bonds
11issued in fiscal year 2003 for the purposes of Section 7.2 of
12the General Obligation Bond Act, so that, by State fiscal year
132011, the State is contributing at the rate otherwise required
14under this Section.
15    (b) If an employee is paid from trust or federal funds, the
16employer shall pay to the Board contributions from those funds
17which are sufficient to cover the accruing normal costs on
18behalf of the employee. However, universities having employees
19who are compensated out of local auxiliary funds, income funds,
20or service enterprise funds are not required to pay such
21contributions on behalf of those employees. The local auxiliary
22funds, income funds, and service enterprise funds of
23universities shall not be considered trust funds for the
24purpose of this Article, but funds of alumni associations,
25foundations, and athletic associations which are affiliated
26with the universities included as employers under this Article

 

 

09600HB5960sam002- 55 -LRB096 17668 PJG 44822 a

1and other employers which do not receive State appropriations
2are considered to be trust funds for the purpose of this
3Article.
4    (b-1) The City of Urbana and the City of Champaign shall
5each make employer contributions to this System for their
6respective firefighter employees who participate in this
7System pursuant to subsection (h) of Section 15-107. The rate
8of contributions to be made by those municipalities shall be
9determined annually by the Board on the basis of the actuarial
10assumptions adopted by the Board and the recommendations of the
11actuary, and shall be expressed as a percentage of salary for
12each such employee. The Board shall certify the rate to the
13affected municipalities as soon as may be practical. The
14employer contributions required under this subsection shall be
15remitted by the municipality to the System at the same time and
16in the same manner as employee contributions.
17    (c) Through State fiscal year 1995: The total employer
18contribution shall be apportioned among the various funds of
19the State and other employers, whether trust, federal, or other
20funds, in accordance with actuarial procedures approved by the
21Board. State of Illinois contributions for employers receiving
22State appropriations for personal services shall be payable
23from appropriations made to the employers or to the System. The
24contributions for Class I community colleges covering earnings
25other than those paid from trust and federal funds, shall be
26payable solely from appropriations to the Illinois Community

 

 

09600HB5960sam002- 56 -LRB096 17668 PJG 44822 a

1College Board or the System for employer contributions.
2    (d) Beginning in State fiscal year 1996, the required State
3contributions to the System shall be appropriated directly to
4the System and shall be payable through vouchers issued in
5accordance with subsection (c) of Section 15-165, except as
6provided in subsection (g).
7    (e) The State Comptroller shall draw warrants payable to
8the System upon proper certification by the System or by the
9employer in accordance with the appropriation laws and this
10Code.
11    (f) Normal costs under this Section means liability for
12pensions and other benefits which accrues to the System because
13of the credits earned for service rendered by the participants
14during the fiscal year and expenses of administering the
15System, but shall not include the principal of or any
16redemption premium or interest on any bonds issued by the Board
17or any expenses incurred or deposits required in connection
18therewith.
19    (g) If the amount of a participant's earnings for any
20academic year used to determine the final rate of earnings,
21determined on a full-time equivalent basis, exceeds the amount
22of his or her earnings with the same employer for the previous
23academic year, determined on a full-time equivalent basis, by
24more than 6%, the participant's employer shall pay to the
25System, in addition to all other payments required under this
26Section and in accordance with guidelines established by the

 

 

09600HB5960sam002- 57 -LRB096 17668 PJG 44822 a

1System, the present value of the increase in benefits resulting
2from the portion of the increase in earnings that is in excess
3of 6%. This present value shall be computed by the System on
4the basis of the actuarial assumptions and tables used in the
5most recent actuarial valuation of the System that is available
6at the time of the computation. The System may require the
7employer to provide any pertinent information or
8documentation.
9    Whenever it determines that a payment is or may be required
10under this subsection (g), the System shall calculate the
11amount of the payment and bill the employer for that amount.
12The bill shall specify the calculations used to determine the
13amount due. If the employer disputes the amount of the bill, it
14may, within 30 days after receipt of the bill, apply to the
15System in writing for a recalculation. The application must
16specify in detail the grounds of the dispute and, if the
17employer asserts that the calculation is subject to subsection
18(h) or (i) of this Section, must include an affidavit setting
19forth and attesting to all facts within the employer's
20knowledge that are pertinent to the applicability of subsection
21(h) or (i). Upon receiving a timely application for
22recalculation, the System shall review the application and, if
23appropriate, recalculate the amount due.
24    The employer contributions required under this subsection
25(f) may be paid in the form of a lump sum within 90 days after
26receipt of the bill. If the employer contributions are not paid

 

 

09600HB5960sam002- 58 -LRB096 17668 PJG 44822 a

1within 90 days after receipt of the bill, then interest will be
2charged at a rate equal to the System's annual actuarially
3assumed rate of return on investment compounded annually from
4the 91st day after receipt of the bill. Payments must be
5concluded within 3 years after the employer's receipt of the
6bill.
7    (h) This subsection (h) applies only to payments made or
8salary increases given on or after June 1, 2005 but before July
91, 2011. The changes made by Public Act 94-1057 shall not
10require the System to refund any payments received before July
1131, 2006 (the effective date of Public Act 94-1057).
12    When assessing payment for any amount due under subsection
13(g), the System shall exclude earnings increases paid to
14participants under contracts or collective bargaining
15agreements entered into, amended, or renewed before June 1,
162005.
17    When assessing payment for any amount due under subsection
18(g), the System shall exclude earnings increases paid to a
19participant at a time when the participant is 10 or more years
20from retirement eligibility under Section 15-135.
21    When assessing payment for any amount due under subsection
22(g), the System shall exclude earnings increases resulting from
23overload work, including a contract for summer teaching, or
24overtime when the employer has certified to the System, and the
25System has approved the certification, that: (i) in the case of
26overloads (A) the overload work is for the sole purpose of

 

 

09600HB5960sam002- 59 -LRB096 17668 PJG 44822 a

1academic instruction in excess of the standard number of
2instruction hours for a full-time employee occurring during the
3academic year that the overload is paid and (B) the earnings
4increases are equal to or less than the rate of pay for
5academic instruction computed using the participant's current
6salary rate and work schedule; and (ii) in the case of
7overtime, the overtime was necessary for the educational
8mission.
9    When assessing payment for any amount due under subsection
10(g), the System shall exclude any earnings increase resulting
11from (i) a promotion for which the employee moves from one
12classification to a higher classification under the State
13Universities Civil Service System, (ii) a promotion in academic
14rank for a tenured or tenure-track faculty position, or (iii) a
15promotion that the Illinois Community College Board has
16recommended in accordance with subsection (k) of this Section.
17These earnings increases shall be excluded only if the
18promotion is to a position that has existed and been filled by
19a member for no less than one complete academic year and the
20earnings increase as a result of the promotion is an increase
21that results in an amount no greater than the average salary
22paid for other similar positions.
23    (i) When assessing payment for any amount due under
24subsection (g), the System shall exclude any salary increase
25described in subsection (h) of this Section given on or after
26July 1, 2011 but before July 1, 2014 under a contract or

 

 

09600HB5960sam002- 60 -LRB096 17668 PJG 44822 a

1collective bargaining agreement entered into, amended, or
2renewed on or after June 1, 2005 but before July 1, 2011.
3Notwithstanding any other provision of this Section, any
4payments made or salary increases given after June 30, 2014
5shall be used in assessing payment for any amount due under
6subsection (g) of this Section.
7    (j) The System shall prepare a report and file copies of
8the report with the Governor and the General Assembly by
9January 1, 2007 that contains all of the following information:
10        (1) The number of recalculations required by the
11    changes made to this Section by Public Act 94-1057 for each
12    employer.
13        (2) The dollar amount by which each employer's
14    contribution to the System was changed due to
15    recalculations required by Public Act 94-1057.
16        (3) The total amount the System received from each
17    employer as a result of the changes made to this Section by
18    Public Act 94-4.
19        (4) The increase in the required State contribution
20    resulting from the changes made to this Section by Public
21    Act 94-1057.
22    (k) The Illinois Community College Board shall adopt rules
23for recommending lists of promotional positions submitted to
24the Board by community colleges and for reviewing the
25promotional lists on an annual basis. When recommending
26promotional lists, the Board shall consider the similarity of

 

 

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1the positions submitted to those positions recognized for State
2universities by the State Universities Civil Service System.
3The Illinois Community College Board shall file a copy of its
4findings with the System. The System shall consider the
5findings of the Illinois Community College Board when making
6determinations under this Section. The System shall not exclude
7any earnings increases resulting from a promotion when the
8promotion was not submitted by a community college. Nothing in
9this subsection (k) shall require any community college to
10submit any information to the Community College Board.
11    (l) For purposes of determining the required State
12contribution to the System, the value of the System's assets
13shall be equal to the actuarial value of the System's assets,
14which shall be calculated as follows:
15    As of June 30, 2008, the actuarial value of the System's
16assets shall be equal to the market value of the assets as of
17that date. In determining the actuarial value of the System's
18assets for fiscal years after June 30, 2008, any actuarial
19gains or losses from investment return incurred in a fiscal
20year shall be recognized in equal annual amounts over the
215-year period following that fiscal year.
22    (m) For purposes of determining the required State
23contribution to the system for a particular year, the actuarial
24value of assets shall be assumed to earn a rate of return equal
25to the system's actuarially assumed rate of return.
26(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;

 

 

09600HB5960sam002- 62 -LRB096 17668 PJG 44822 a

196-43, eff. 7-15-09.)
 
2    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
3    Sec. 16-158. Contributions by State and other employing
4units.
5    (a) The State shall make contributions to the System by
6means of appropriations from the Common School Fund and other
7State funds of amounts which, together with other employer
8contributions, employee contributions, investment income, and
9other income, will be sufficient to meet the cost of
10maintaining and administering the System on a 90% funded basis
11in accordance with actuarial recommendations.
12    The Board shall determine the amount of State contributions
13required for each fiscal year on the basis of the actuarial
14tables and other assumptions adopted by the Board and the
15recommendations of the actuary, using the formula in subsection
16(b-3).
17    (a-1) Annually, on or before November 15, the Board shall
18certify to the Governor the amount of the required State
19contribution for the coming fiscal year. The certification
20shall include a copy of the actuarial recommendations upon
21which it is based.
22    On or before May 1, 2004, the Board shall recalculate and
23recertify to the Governor the amount of the required State
24contribution to the System for State fiscal year 2005, taking
25into account the amounts appropriated to and received by the

 

 

09600HB5960sam002- 63 -LRB096 17668 PJG 44822 a

1System under subsection (d) of Section 7.2 of the General
2Obligation Bond Act.
3    On or before July 1, 2005, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2006, taking
6into account the changes in required State contributions made
7by this amendatory Act of the 94th General Assembly.
8    (b) Through State fiscal year 1995, the State contributions
9shall be paid to the System in accordance with Section 18-7 of
10the School Code.
11    (b-1) Beginning in State fiscal year 1996, on the 15th day
12of each month, or as soon thereafter as may be practicable, the
13Board shall submit vouchers for payment of State contributions
14to the System, in a total monthly amount of one-twelfth of the
15required annual State contribution certified under subsection
16(a-1). From the effective date of this amendatory Act of the
1793rd General Assembly through June 30, 2004, the Board shall
18not submit vouchers for the remainder of fiscal year 2004 in
19excess of the fiscal year 2004 certified contribution amount
20determined under this Section after taking into consideration
21the transfer to the System under subsection (a) of Section
226z-61 of the State Finance Act. These vouchers shall be paid by
23the State Comptroller and Treasurer by warrants drawn on the
24funds appropriated to the System for that fiscal year.
25    If in any month the amount remaining unexpended from all
26other appropriations to the System for the applicable fiscal

 

 

09600HB5960sam002- 64 -LRB096 17668 PJG 44822 a

1year (including the appropriations to the System under Section
28.12 of the State Finance Act and Section 1 of the State
3Pension Funds Continuing Appropriation Act) is less than the
4amount lawfully vouchered under this subsection, the
5difference shall be paid from the Common School Fund under the
6continuing appropriation authority provided in Section 1.1 of
7the State Pension Funds Continuing Appropriation Act.
8    (b-2) Allocations from the Common School Fund apportioned
9to school districts not coming under this System shall not be
10diminished or affected by the provisions of this Article.
11    (b-3) For State fiscal years 2011 through 2045, the minimum
12contribution to the System to be made by the State for each
13fiscal year shall be an amount determined by the System to be
14sufficient to bring the total assets of the System up to 90% of
15the total actuarial liabilities of the System by the end of
16State fiscal year 2045. In making these determinations, the
17required State contribution shall be calculated each year as a
18level percentage of payroll over the years remaining to and
19including fiscal year 2045 and shall be determined under the
20projected unit credit actuarial cost method.
21    For State fiscal years 1996 through 2005, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24so that by State fiscal year 2011, the State is contributing at
25the rate required under this Section; except that in the
26following specified State fiscal years, the State contribution

 

 

09600HB5960sam002- 65 -LRB096 17668 PJG 44822 a

1to the System shall not be less than the following indicated
2percentages of the applicable employee payroll, even if the
3indicated percentage will produce a State contribution in
4excess of the amount otherwise required under this subsection
5and subsection (a), and notwithstanding any contrary
6certification made under subsection (a-1) before the effective
7date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
8in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
92003; and 13.56% in FY 2004.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2006 is
12$534,627,700.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$738,014,500.
16    For each of State fiscal years 2008 through 2009, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19from the required State contribution for State fiscal year
202007, so that by State fiscal year 2011, the State is
21contributing at the rate otherwise required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010 is
24$2,089,268,000 and shall be made from the proceeds of bonds
25sold in fiscal year 2010 pursuant to Section 7.2 of the General
26Obligation Bond Act, less (i) the pro rata share of bond sale

 

 

09600HB5960sam002- 66 -LRB096 17668 PJG 44822 a

1expenses determined by the System's share of total bond
2proceeds, (ii) any amounts received from the Common School Fund
3in fiscal year 2010, and (iii) any reduction in bond proceeds
4due to the issuance of discounted bonds, if applicable.
5    Beginning in State fiscal year 2046, the minimum State
6contribution for each fiscal year shall be the amount needed to
7maintain the total assets of the System at 90% of the total
8actuarial liabilities of the System.
9    Amounts received by the System pursuant to Section 25 of
10the Budget Stabilization Act or Section 8.12 of the State
11Finance Act in any fiscal year do not reduce and do not
12constitute payment of any portion of the minimum State
13contribution required under this Article in that fiscal year.
14Such amounts shall not reduce, and shall not be included in the
15calculation of, the required State contributions under this
16Article in any future year until the System has reached a
17funding ratio of at least 90%. A reference in this Article to
18the "required State contribution" or any substantially similar
19term does not include or apply to any amounts payable to the
20System under Section 25 of the Budget Stabilization Act.
21    Notwithstanding any other provision of this Section, the
22required State contribution for State fiscal year 2005 and for
23fiscal year 2008 and each fiscal year thereafter, as calculated
24under this Section and certified under subsection (a-1), shall
25not exceed an amount equal to (i) the amount of the required
26State contribution that would have been calculated under this

 

 

09600HB5960sam002- 67 -LRB096 17668 PJG 44822 a

1Section for that fiscal year if the System had not received any
2payments under subsection (d) of Section 7.2 of the General
3Obligation Bond Act, minus (ii) the portion of the State's
4total debt service payments for that fiscal year on the bonds
5issued in fiscal year 2003 for the purposes of that Section
67.2, as determined and certified by the Comptroller, that is
7the same as the System's portion of the total moneys
8distributed under subsection (d) of Section 7.2 of the General
9Obligation Bond Act. In determining this maximum for State
10fiscal years 2008 through 2010, however, the amount referred to
11in item (i) shall be increased, as a percentage of the
12applicable employee payroll, in equal increments calculated
13from the sum of the required State contribution for State
14fiscal year 2007 plus the applicable portion of the State's
15total debt service payments for fiscal year 2007 on the bonds
16issued in fiscal year 2003 for the purposes of Section 7.2 of
17the General Obligation Bond Act, so that, by State fiscal year
182011, the State is contributing at the rate otherwise required
19under this Section.
20    (c) Payment of the required State contributions and of all
21pensions, retirement annuities, death benefits, refunds, and
22other benefits granted under or assumed by this System, and all
23expenses in connection with the administration and operation
24thereof, are obligations of the State.
25    If members are paid from special trust or federal funds
26which are administered by the employing unit, whether school

 

 

09600HB5960sam002- 68 -LRB096 17668 PJG 44822 a

1district or other unit, the employing unit shall pay to the
2System from such funds the full accruing retirement costs based
3upon that service, as determined by the System. Employer
4contributions, based on salary paid to members from federal
5funds, may be forwarded by the distributing agency of the State
6of Illinois to the System prior to allocation, in an amount
7determined in accordance with guidelines established by such
8agency and the System.
9    (d) Effective July 1, 1986, any employer of a teacher as
10defined in paragraph (8) of Section 16-106 shall pay the
11employer's normal cost of benefits based upon the teacher's
12service, in addition to employee contributions, as determined
13by the System. Such employer contributions shall be forwarded
14monthly in accordance with guidelines established by the
15System.
16    However, with respect to benefits granted under Section
1716-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
18of Section 16-106, the employer's contribution shall be 12%
19(rather than 20%) of the member's highest annual salary rate
20for each year of creditable service granted, and the employer
21shall also pay the required employee contribution on behalf of
22the teacher. For the purposes of Sections 16-133.4 and
2316-133.5, a teacher as defined in paragraph (8) of Section
2416-106 who is serving in that capacity while on leave of
25absence from another employer under this Article shall not be
26considered an employee of the employer from which the teacher

 

 

09600HB5960sam002- 69 -LRB096 17668 PJG 44822 a

1is on leave.
2    (e) Beginning July 1, 1998, every employer of a teacher
3shall pay to the System an employer contribution computed as
4follows:
5        (1) Beginning July 1, 1998 through June 30, 1999, the
6    employer contribution shall be equal to 0.3% of each
7    teacher's salary.
8        (2) Beginning July 1, 1999 and thereafter, the employer
9    contribution shall be equal to 0.58% of each teacher's
10    salary.
11The school district or other employing unit may pay these
12employer contributions out of any source of funding available
13for that purpose and shall forward the contributions to the
14System on the schedule established for the payment of member
15contributions.
16    These employer contributions are intended to offset a
17portion of the cost to the System of the increases in
18retirement benefits resulting from this amendatory Act of 1998.
19    Each employer of teachers is entitled to a credit against
20the contributions required under this subsection (e) with
21respect to salaries paid to teachers for the period January 1,
222002 through June 30, 2003, equal to the amount paid by that
23employer under subsection (a-5) of Section 6.6 of the State
24Employees Group Insurance Act of 1971 with respect to salaries
25paid to teachers for that period.
26    The additional 1% employee contribution required under

 

 

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1Section 16-152 by this amendatory Act of 1998 is the
2responsibility of the teacher and not the teacher's employer,
3unless the employer agrees, through collective bargaining or
4otherwise, to make the contribution on behalf of the teacher.
5    If an employer is required by a contract in effect on May
61, 1998 between the employer and an employee organization to
7pay, on behalf of all its full-time employees covered by this
8Article, all mandatory employee contributions required under
9this Article, then the employer shall be excused from paying
10the employer contribution required under this subsection (e)
11for the balance of the term of that contract. The employer and
12the employee organization shall jointly certify to the System
13the existence of the contractual requirement, in such form as
14the System may prescribe. This exclusion shall cease upon the
15termination, extension, or renewal of the contract at any time
16after May 1, 1998.
17    (f) If the amount of a teacher's salary for any school year
18used to determine final average salary exceeds the member's
19annual full-time salary rate with the same employer for the
20previous school year by more than 6%, the teacher's employer
21shall pay to the System, in addition to all other payments
22required under this Section and in accordance with guidelines
23established by the System, the present value of the increase in
24benefits resulting from the portion of the increase in salary
25that is in excess of 6%. This present value shall be computed
26by the System on the basis of the actuarial assumptions and

 

 

09600HB5960sam002- 71 -LRB096 17668 PJG 44822 a

1tables used in the most recent actuarial valuation of the
2System that is available at the time of the computation. If a
3teacher's salary for the 2005-2006 school year is used to
4determine final average salary under this subsection (f), then
5the changes made to this subsection (f) by Public Act 94-1057
6shall apply in calculating whether the increase in his or her
7salary is in excess of 6%. For the purposes of this Section,
8change in employment under Section 10-21.12 of the School Code
9on or after June 1, 2005 shall constitute a change in employer.
10The System may require the employer to provide any pertinent
11information or documentation. The changes made to this
12subsection (f) by this amendatory Act of the 94th General
13Assembly apply without regard to whether the teacher was in
14service on or after its effective date.
15    Whenever it determines that a payment is or may be required
16under this subsection, the System shall calculate the amount of
17the payment and bill the employer for that amount. The bill
18shall specify the calculations used to determine the amount
19due. If the employer disputes the amount of the bill, it may,
20within 30 days after receipt of the bill, apply to the System
21in writing for a recalculation. The application must specify in
22detail the grounds of the dispute and, if the employer asserts
23that the calculation is subject to subsection (g) or (h) of
24this Section, must include an affidavit setting forth and
25attesting to all facts within the employer's knowledge that are
26pertinent to the applicability of that subsection. Upon

 

 

09600HB5960sam002- 72 -LRB096 17668 PJG 44822 a

1receiving a timely application for recalculation, the System
2shall review the application and, if appropriate, recalculate
3the amount due.
4    The employer contributions required under this subsection
5(f) may be paid in the form of a lump sum within 90 days after
6receipt of the bill. If the employer contributions are not paid
7within 90 days after receipt of the bill, then interest will be
8charged at a rate equal to the System's annual actuarially
9assumed rate of return on investment compounded annually from
10the 91st day after receipt of the bill. Payments must be
11concluded within 3 years after the employer's receipt of the
12bill.
13    (g) This subsection (g) applies only to payments made or
14salary increases given on or after June 1, 2005 but before July
151, 2011. The changes made by Public Act 94-1057 shall not
16require the System to refund any payments received before July
1731, 2006 (the effective date of Public Act 94-1057).
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases paid to teachers
20under contracts or collective bargaining agreements entered
21into, amended, or renewed before June 1, 2005.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases paid to a
24teacher at a time when the teacher is 10 or more years from
25retirement eligibility under Section 16-132 or 16-133.2.
26    When assessing payment for any amount due under subsection

 

 

09600HB5960sam002- 73 -LRB096 17668 PJG 44822 a

1(f), the System shall exclude salary increases resulting from
2overload work, including summer school, when the school
3district has certified to the System, and the System has
4approved the certification, that (i) the overload work is for
5the sole purpose of classroom instruction in excess of the
6standard number of classes for a full-time teacher in a school
7district during a school year and (ii) the salary increases are
8equal to or less than the rate of pay for classroom instruction
9computed on the teacher's current salary and work schedule.
10    When assessing payment for any amount due under subsection
11(f), the System shall exclude a salary increase resulting from
12a promotion (i) for which the employee is required to hold a
13certificate or supervisory endorsement issued by the State
14Teacher Certification Board that is a different certification
15or supervisory endorsement than is required for the teacher's
16previous position and (ii) to a position that has existed and
17been filled by a member for no less than one complete academic
18year and the salary increase from the promotion is an increase
19that results in an amount no greater than the lesser of the
20average salary paid for other similar positions in the district
21requiring the same certification or the amount stipulated in
22the collective bargaining agreement for a similar position
23requiring the same certification.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude any payment to the teacher from
26the State of Illinois or the State Board of Education over

 

 

09600HB5960sam002- 74 -LRB096 17668 PJG 44822 a

1which the employer does not have discretion, notwithstanding
2that the payment is included in the computation of final
3average salary.
4    (h) When assessing payment for any amount due under
5subsection (f), the System shall exclude any salary increase
6described in subsection (g) of this Section given on or after
7July 1, 2011 but before July 1, 2014 under a contract or
8collective bargaining agreement entered into, amended, or
9renewed on or after June 1, 2005 but before July 1, 2011.
10Notwithstanding any other provision of this Section, any
11payments made or salary increases given after June 30, 2014
12shall be used in assessing payment for any amount due under
13subsection (f) of this Section.
14    (i) The System shall prepare a report and file copies of
15the report with the Governor and the General Assembly by
16January 1, 2007 that contains all of the following information:
17        (1) The number of recalculations required by the
18    changes made to this Section by Public Act 94-1057 for each
19    employer.
20        (2) The dollar amount by which each employer's
21    contribution to the System was changed due to
22    recalculations required by Public Act 94-1057.
23        (3) The total amount the System received from each
24    employer as a result of the changes made to this Section by
25    Public Act 94-4.
26        (4) The increase in the required State contribution

 

 

09600HB5960sam002- 75 -LRB096 17668 PJG 44822 a

1    resulting from the changes made to this Section by Public
2    Act 94-1057.
3    (j) For purposes of determining the required State
4contribution to the System, the value of the System's assets
5shall be equal to the actuarial value of the System's assets,
6which shall be calculated as follows:
7    As of June 30, 2008, the actuarial value of the System's
8assets shall be equal to the market value of the assets as of
9that date. In determining the actuarial value of the System's
10assets for fiscal years after June 30, 2008, any actuarial
11gains or losses from investment return incurred in a fiscal
12year shall be recognized in equal annual amounts over the
135-year period following that fiscal year.
14    (k) For purposes of determining the required State
15contribution to the system for a particular year, the actuarial
16value of assets shall be assumed to earn a rate of return equal
17to the system's actuarially assumed rate of return.
18(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
1996-43, eff. 7-15-09.)
 
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
23System by appropriations of the amounts which, together with
24the contributions of participants, net earnings on
25investments, and other income, will meet the costs of

 

 

09600HB5960sam002- 76 -LRB096 17668 PJG 44822 a

1maintaining and administering this System on a 90% funded basis
2in accordance with actuarial recommendations.
3    (b) The Board shall determine the amount of State
4contributions required for each fiscal year on the basis of the
5actuarial tables and other assumptions adopted by the Board and
6the prescribed rate of interest, using the formula in
7subsection (c).
8    (c) For State fiscal years 2011 through 2045, the minimum
9contribution to the System to be made by the State for each
10fiscal year shall be an amount determined by the System to be
11sufficient to bring the total assets of the System up to 90% of
12the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of payroll over the years remaining to and
16including fiscal year 2045 and shall be determined under the
17projected unit credit actuarial cost method.
18    For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2006 is
25$29,189,400.
26    Notwithstanding any other provision of this Article, the

 

 

09600HB5960sam002- 77 -LRB096 17668 PJG 44822 a

1total required State contribution for State fiscal year 2007 is
2$35,236,800.
3    For each of State fiscal years 2008 through 2009, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6from the required State contribution for State fiscal year
72007, so that by State fiscal year 2011, the State is
8contributing at the rate otherwise required under this Section.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2010 is
11$78,832,000 and shall be made from the proceeds of bonds sold
12in fiscal year 2010 pursuant to Section 7.2 of the General
13Obligation Bond Act, less (i) the pro rata share of bond sale
14expenses determined by the System's share of total bond
15proceeds, (ii) any amounts received from the General Revenue
16Fund in fiscal year 2010, and (iii) any reduction in bond
17proceeds due to the issuance of discounted bonds, if
18applicable.
19    Beginning in State fiscal year 2046, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 90% of the total
22actuarial liabilities of the System.
23    Amounts received by the System pursuant to Section 25 of
24the Budget Stabilization Act or Section 8.12 of the State
25Finance Act in any fiscal year do not reduce and do not
26constitute payment of any portion of the minimum State

 

 

09600HB5960sam002- 78 -LRB096 17668 PJG 44822 a

1contribution required under this Article in that fiscal year.
2Such amounts shall not reduce, and shall not be included in the
3calculation of, the required State contributions under this
4Article in any future year until the System has reached a
5funding ratio of at least 90%. A reference in this Article to
6the "required State contribution" or any substantially similar
7term does not include or apply to any amounts payable to the
8System under Section 25 of the Budget Stabilization Act.
9    Notwithstanding any other provision of this Section, the
10required State contribution for State fiscal year 2005 and for
11fiscal year 2008 and each fiscal year thereafter, as calculated
12under this Section and certified under Section 18-140, shall
13not exceed an amount equal to (i) the amount of the required
14State contribution that would have been calculated under this
15Section for that fiscal year if the System had not received any
16payments under subsection (d) of Section 7.2 of the General
17Obligation Bond Act, minus (ii) the portion of the State's
18total debt service payments for that fiscal year on the bonds
19issued in fiscal year 2003 for the purposes of that Section
207.2, as determined and certified by the Comptroller, that is
21the same as the System's portion of the total moneys
22distributed under subsection (d) of Section 7.2 of the General
23Obligation Bond Act. In determining this maximum for State
24fiscal years 2008 through 2010, however, the amount referred to
25in item (i) shall be increased, as a percentage of the
26applicable employee payroll, in equal increments calculated

 

 

09600HB5960sam002- 79 -LRB096 17668 PJG 44822 a

1from the sum of the required State contribution for State
2fiscal year 2007 plus the applicable portion of the State's
3total debt service payments for fiscal year 2007 on the bonds
4issued in fiscal year 2003 for the purposes of Section 7.2 of
5the General Obligation Bond Act, so that, by State fiscal year
62011, the State is contributing at the rate otherwise required
7under this Section.
8    (d) For purposes of determining the required State
9contribution to the System, the value of the System's assets
10shall be equal to the actuarial value of the System's assets,
11which shall be calculated as follows:
12    As of June 30, 2008, the actuarial value of the System's
13assets shall be equal to the market value of the assets as of
14that date. In determining the actuarial value of the System's
15assets for fiscal years after June 30, 2008, any actuarial
16gains or losses from investment return incurred in a fiscal
17year shall be recognized in equal annual amounts over the
185-year period following that fiscal year.
19    (e) For purposes of determining the required State
20contribution to the system for a particular year, the actuarial
21value of assets shall be assumed to earn a rate of return equal
22to the system's actuarially assumed rate of return.
23(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
 
24    (40 ILCS 5/22A-111)  (from Ch. 108 1/2, par. 22A-111)
25    Sec. 22A-111. The Board shall manage the investments of any

 

 

09600HB5960sam002- 80 -LRB096 17668 PJG 44822 a

1pension fund, retirement system, or education fund for the
2purpose of obtaining a total return on investments for the long
3term. It also shall perform such other functions as may be
4assigned or directed by the General Assembly.
5    The authority of the board to manage pension fund
6investments and the liability shall begin when there has been a
7physical transfer of the pension fund investments to the board
8and placed in the custody of the State Treasurer.
9    The authority of the board to manage monies from the
10education fund for investment and the liability of the board
11shall begin when there has been a physical transfer of
12education fund investments to the board and placed in the
13custody of the State Treasurer.
14    The board may not delegate its management functions, but it
15may, but is not required to, arrange to compensate for
16personalized investment advisory service for any or all
17investments under its control, with any national or state bank
18or trust company authorized to do a trust business and
19domiciled in Illinois, or other financial institution
20organized under the laws of Illinois, or an investment advisor
21who is qualified under Federal Investment Advisors Act of 1940
22and is registered under the Illinois Securities Law of 1953.
23Nothing contained herein shall prevent the Board from
24subscribing to general investment research services available
25for purchase or use by others. The Board shall also have the
26authority to compensate for accounting services.

 

 

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1    This Section shall not be construed to prohibit the
2Illinois State Board of Investment from directly investing
3pension assets in public market investments, private
4investments, real estate investments, or other investments
5authorized by this Code.
6(Source: P.A. 84-1127.)
 
7    Section 20. The School Construction Law is amended by
8adding Section 5-38 as follows:
 
9    (105 ILCS 230/5-38 new)
10    Sec. 5-38. Fiscal Year 2002 escalation. If a school
11district has been issued a school construction grant in Fiscal
12Year 2010 and the school district was on the FY2002 priority
13ranking, the Capital Development Board shall escalate the state
14share grant amount of the project on a 3% annual escalation
15rate.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".