98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0096

 

Introduced 1/9/2013, by Rep. André M. Thapedi

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Employees Group Insurance Act of 1971. Shifts the costs of health insurance coverage for future employees of certain higher education institutions from the State to those higher education institutions. Creates a new health benefit program for those employees, once they become annuitants, and for their dependent beneficiaries. Terminates provisions providing for the ongoing transfer of funds from the General Revenue Fund to the Teacher Health Insurance Security Fund and the Community College Health Insurance Security Fund. Amends the Illinois Pension Code. Requires certain employers to provide a tax-sheltered annuity retirement plan to eligible employees. Requires current members and participants to elect whether to maintain their current benefits in the State-funded retirement systems. Prohibits the State-funded retirement systems from accepting new members or participants. Changes the amount of the required State contributions to the State-funded retirement systems and, in the State Universities and Downstate Teacher Articles, shifts the liability for making those contributions to employers. Amends the State Pension Funds Continuing Appropriation Act. Terminates continuing appropriations from the General Revenue Fund to the Teacher Health Insurance Security Fund and the Community College Health Insurance Security Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB098 05512 JDS 35547 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Legislative findings. The General Assembly
5hereby finds that:
6        (1) the last two decades of the Twentieth Century saw
7    simultaneously robust growth in bond and stock markets,
8    which boosted funding for promised benefits;
9        (2) there was a tendency, as a result, to spend that
10    newfound wealth by granting higher benefits or by providing
11    employers substantial contribution reductions;
12        (3) benefit levels were raised to what now appear to be
13    unsustainable levels, given prevailing financial
14    constraints;
15        (4) applying reductions only to new hires does not
16    produce meaningful savings for many years and creates stark
17    intergenerational disparity;
18        (5) current required contributions are higher than the
19    State budget can tolerate during current severe economic
20    distress, and near-term reductions will not reduce
21    ultimate costs, but distribute them differently, creating
22    an intergenerational debt transfer;
23        (6) financial markets will offer fewer and
24    lower-returning investment opportunities; and

 

 

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1        (7) many funds and plan sponsors are interested in less
2    volatility after the experiences of the past decade.
 
3    Section 5. The State Employees Group Insurance Act of 1971
4is amended by changing Sections 3, 6.6, and 6.10 and by adding
5Sections 6.10A and 6.10B as follows:
 
6    (5 ILCS 375/3)  (from Ch. 127, par. 523)
7    Sec. 3. Definitions. Unless the context otherwise
8requires, the following words and phrases as used in this Act
9shall have the following meanings. The Department may define
10these and other words and phrases separately for the purpose of
11implementing specific programs providing benefits under this
12Act.
13    (a) "Administrative service organization" means any
14person, firm or corporation experienced in the handling of
15claims which is fully qualified, financially sound and capable
16of meeting the service requirements of a contract of
17administration executed with the Department.
18    (b) "Annuitant" means (1) an employee who retires, or has
19retired, on or after January 1, 1966 on an immediate annuity
20under the provisions of Articles 2, 14 (including an employee
21who has elected to receive an alternative retirement
22cancellation payment under Section 14-108.5 of the Illinois
23Pension Code in lieu of an annuity), 15 (including an employee
24who has retired under the optional retirement program

 

 

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1established under Section 15-158.2), paragraphs (2), (3), or
2(5) of Section 16-106, or Article 18 of the Illinois Pension
3Code; (2) any person who was receiving group insurance coverage
4under this Act as of March 31, 1978 by reason of his status as
5an annuitant, even though the annuity in relation to which such
6coverage was provided is a proportional annuity based on less
7than the minimum period of service required for a retirement
8annuity in the system involved; (3) any person not otherwise
9covered by this Act who has retired as a participating member
10under Article 2 of the Illinois Pension Code but is ineligible
11for the retirement annuity under Section 2-119 of the Illinois
12Pension Code; (4) the spouse of any person who is receiving a
13retirement annuity under Article 18 of the Illinois Pension
14Code and who is covered under a group health insurance program
15sponsored by a governmental employer other than the State of
16Illinois and who has irrevocably elected to waive his or her
17coverage under this Act and to have his or her spouse
18considered as the "annuitant" under this Act and not as a
19"dependent"; or (5) an employee who retires, or has retired,
20from a qualified position, as determined according to rules
21promulgated by the Director, under a qualified local
22government, a qualified rehabilitation facility, a qualified
23domestic violence shelter or service, or a qualified child
24advocacy center. (For definition of "retired employee", see (p)
25post).
26    (b-5) (Blank).

 

 

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1    (b-6) (Blank).
2    (b-7) (Blank).
3    (c) "Carrier" means (1) an insurance company, a corporation
4organized under the Limited Health Service Organization Act or
5the Voluntary Health Services Plan Act, a partnership, or other
6nongovernmental organization, which is authorized to do group
7life or group health insurance business in Illinois, or (2) the
8State of Illinois as a self-insurer.
9    (d) "Compensation" means salary or wages payable on a
10regular payroll by the State Treasurer on a warrant of the
11State Comptroller out of any State, trust or federal fund, or
12by the Governor of the State through a disbursing officer of
13the State out of a trust or out of federal funds, or by any
14Department out of State, trust, federal or other funds held by
15the State Treasurer or the Department, to any person for
16personal services currently performed, and ordinary or
17accidental disability benefits under Articles 2, 14, 15
18(including ordinary or accidental disability benefits under
19the optional retirement program established under Section
2015-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
21Article 18 of the Illinois Pension Code, for disability
22incurred after January 1, 1966, or benefits payable under the
23Workers' Compensation or Occupational Diseases Act or benefits
24payable under a sick pay plan established in accordance with
25Section 36 of the State Finance Act. "Compensation" also means
26salary or wages paid to an employee of any qualified local

 

 

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1government, qualified rehabilitation facility, qualified
2domestic violence shelter or service, or qualified child
3advocacy center.
4    (e) "Commission" means the State Employees Group Insurance
5Advisory Commission authorized by this Act. Commencing July 1,
61984, "Commission" as used in this Act means the Commission on
7Government Forecasting and Accountability as established by
8the Legislative Commission Reorganization Act of 1984.
9    (f) "Contributory", when referred to as contributory
10coverage, shall mean optional coverages or benefits elected by
11the member toward the cost of which such member makes
12contribution, or which are funded in whole or in part through
13the acceptance of a reduction in earnings or the foregoing of
14an increase in earnings by an employee, as distinguished from
15noncontributory coverage or benefits which are paid entirely by
16the State of Illinois without reduction of the member's salary.
17    (g) "Department" means any department, institution, board,
18commission, officer, court or any agency of the State
19government receiving appropriations and having power to
20certify payrolls to the Comptroller authorizing payments of
21salary and wages against such appropriations as are made by the
22General Assembly from any State fund, or against trust funds
23held by the State Treasurer and includes boards of trustees of
24the retirement systems created by Articles 2, 14, 15, 16 and 18
25of the Illinois Pension Code. "Department" also includes the
26Illinois Comprehensive Health Insurance Board, the Board of

 

 

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1Examiners established under the Illinois Public Accounting
2Act, and the Illinois Finance Authority.
3    (h) "Dependent", when the term is used in the context of
4the health and life plan, means a member's spouse and any child
5(1) from birth to age 26 including an adopted child, a child
6who lives with the member from the time of the filing of a
7petition for adoption until entry of an order of adoption, a
8stepchild or adjudicated child, or a child who lives with the
9member if such member is a court appointed guardian of the
10child or (2) age 19 or over who is mentally or physically
11disabled from a cause originating prior to the age of 19 (age
1226 if enrolled as an adult child dependent). For the health
13plan only, the term "dependent" also includes (1) any person
14enrolled prior to the effective date of this Section who is
15dependent upon the member to the extent that the member may
16claim such person as a dependent for income tax deduction
17purposes and (2) any person who has received after June 30,
182000 an organ transplant and who is financially dependent upon
19the member and eligible to be claimed as a dependent for income
20tax purposes. A member requesting to cover any dependent must
21provide documentation as requested by the Department of Central
22Management Services and file with the Department any and all
23forms required by the Department.
24    (i) "Director" means the Director of the Illinois
25Department of Central Management Services or of any successor
26agency designated to administer this Act.

 

 

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1    (j) "Eligibility period" means the period of time a member
2has to elect enrollment in programs or to select benefits
3without regard to age, sex or health.
4    (k) "Employee" means and includes each officer or employee
5in the service of a department who (1) receives his
6compensation for service rendered to the department on a
7warrant issued pursuant to a payroll certified by a department
8or on a warrant or check issued and drawn by a department upon
9a trust, federal or other fund or on a warrant issued pursuant
10to a payroll certified by an elected or duly appointed officer
11of the State or who receives payment of the performance of
12personal services on a warrant issued pursuant to a payroll
13certified by a Department and drawn by the Comptroller upon the
14State Treasurer against appropriations made by the General
15Assembly from any fund or against trust funds held by the State
16Treasurer, and (2) is employed full-time or part-time in a
17position normally requiring actual performance of duty during
18not less than 1/2 of a normal work period, as established by
19the Director in cooperation with each department, except that
20persons elected by popular vote will be considered employees
21during the entire term for which they are elected regardless of
22hours devoted to the service of the State, and (3) except that
23"employee" does not include any person who is not eligible by
24reason of such person's employment to participate in one of the
25State retirement systems under Articles 2, 14, 15 (either the
26regular Article 15 system or the optional retirement program

 

 

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1established under Section 15-158.2) or 18, or under paragraph
2(2), (3), or (5) of Section 16-106, of the Illinois Pension
3Code, but such term does include persons who are employed
4during the 6 month qualifying period under Article 14 of the
5Illinois Pension Code. Such term also includes any person who
6(1) after January 1, 1966, is receiving ordinary or accidental
7disability benefits under Articles 2, 14, 15 (including
8ordinary or accidental disability benefits under the optional
9retirement program established under Section 15-158.2),
10paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
11the Illinois Pension Code, for disability incurred after
12January 1, 1966, (2) receives total permanent or total
13temporary disability under the Workers' Compensation Act or
14Occupational Disease Act as a result of injuries sustained or
15illness contracted in the course of employment with the State
16of Illinois, or (3) is not otherwise covered under this Act and
17has retired as a participating member under Article 2 of the
18Illinois Pension Code but is ineligible for the retirement
19annuity under Section 2-119 of the Illinois Pension Code.
20However, a person who satisfies the criteria of the foregoing
21definition of "employee" except that such person is made
22ineligible to participate in the State Universities Retirement
23System by clause (4) of subsection (a) of Section 15-107 of the
24Illinois Pension Code is also an "employee" for the purposes of
25this Act. "Employee" also includes any person receiving or
26eligible for benefits under a sick pay plan established in

 

 

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1accordance with Section 36 of the State Finance Act. "Employee"
2also includes (i) each officer or employee in the service of a
3qualified local government, including persons appointed as
4trustees of sanitary districts regardless of hours devoted to
5the service of the sanitary district, (ii) each employee in the
6service of a qualified rehabilitation facility, (iii) each
7full-time employee in the service of a qualified domestic
8violence shelter or service, and (iv) each full-time employee
9in the service of a qualified child advocacy center, as
10determined according to rules promulgated by the Director.
11Notwithstanding any other provision of this subsection (k),
12"employee" does not include a person first employed on or after
13the effective date of this amendatory Act of the 98th General
14Assembly by an employer listed under Section 15-106 of the
15Illinois Pension Code.
16    (l) "Member" means an employee, annuitant, retired
17employee or survivor. In the case of an annuitant or retired
18employee who first becomes an annuitant or retired employee on
19or after the effective date of this amendatory Act of the 97th
20General Assembly, the individual must meet the minimum vesting
21requirements of the applicable retirement system in order to be
22eligible for group insurance benefits under that system. In the
23case of a survivor who first becomes a survivor on or after the
24effective date of this amendatory Act of the 97th General
25Assembly, the deceased employee, annuitant, or retired
26employee upon whom the annuity is based must have been eligible

 

 

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1to participate in the group insurance system under the
2applicable retirement system in order for the survivor to be
3eligible for group insurance benefits under that system.
4    (m) "Optional coverages or benefits" means those coverages
5or benefits available to the member on his or her voluntary
6election, and at his or her own expense.
7    (n) "Program" means the group life insurance, health
8benefits and other employee benefits designed and contracted
9for by the Director under this Act.
10    (o) "Health plan" means a health benefits program offered
11by the State of Illinois for persons eligible for the plan.
12    (p) "Retired employee" means any person who would be an
13annuitant as that term is defined herein but for the fact that
14such person retired prior to January 1, 1966. Such term also
15includes any person formerly employed by the University of
16Illinois in the Cooperative Extension Service who would be an
17annuitant but for the fact that such person was made ineligible
18to participate in the State Universities Retirement System by
19clause (4) of subsection (a) of Section 15-107 of the Illinois
20Pension Code.
21    (q) "Survivor" means a person receiving an annuity as a
22survivor of an employee or of an annuitant. "Survivor" also
23includes: (1) the surviving dependent of a person who satisfies
24the definition of "employee" except that such person is made
25ineligible to participate in the State Universities Retirement
26System by clause (4) of subsection (a) of Section 15-107 of the

 

 

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1Illinois Pension Code; (2) the surviving dependent of any
2person formerly employed by the University of Illinois in the
3Cooperative Extension Service who would be an annuitant except
4for the fact that such person was made ineligible to
5participate in the State Universities Retirement System by
6clause (4) of subsection (a) of Section 15-107 of the Illinois
7Pension Code; and (3) the surviving dependent of a person who
8was an annuitant under this Act by virtue of receiving an
9alternative retirement cancellation payment under Section
1014-108.5 of the Illinois Pension Code. Notwithstanding any
11other provision of this subsection (q), "survivor" does not
12include a person receiving an annuity as a survivor of a person
13first employed on or after the effective date of this
14amendatory Act of the 98th General Assembly by an employer
15listed under Section 15-106 of the Illinois Pension Code.
16    (q-2) "SERS" means the State Employees' Retirement System
17of Illinois, created under Article 14 of the Illinois Pension
18Code.
19    (q-3) "SURS" means the State Universities Retirement
20System, created under Article 15 of the Illinois Pension Code.
21    (q-4) "TRS" means the Teachers' Retirement System of the
22State of Illinois, created under Article 16 of the Illinois
23Pension Code.
24    (q-5) (Blank).
25    (q-6) (Blank).
26    (q-7) (Blank).

 

 

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1    (r) "Medical services" means the services provided within
2the scope of their licenses by practitioners in all categories
3licensed under the Medical Practice Act of 1987.
4    (s) "Unit of local government" means any county,
5municipality, township, school district (including a
6combination of school districts under the Intergovernmental
7Cooperation Act), special district or other unit, designated as
8a unit of local government by law, which exercises limited
9governmental powers or powers in respect to limited
10governmental subjects, any not-for-profit association with a
11membership that primarily includes townships and township
12officials, that has duties that include provision of research
13service, dissemination of information, and other acts for the
14purpose of improving township government, and that is funded
15wholly or partly in accordance with Section 85-15 of the
16Township Code; any not-for-profit corporation or association,
17with a membership consisting primarily of municipalities, that
18operates its own utility system, and provides research,
19training, dissemination of information, or other acts to
20promote cooperation between and among municipalities that
21provide utility services and for the advancement of the goals
22and purposes of its membership; the Southern Illinois
23Collegiate Common Market, which is a consortium of higher
24education institutions in Southern Illinois; the Illinois
25Association of Park Districts; and any hospital provider that
26is owned by a county that has 100 or fewer hospital beds and

 

 

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1has not already joined the program. "Qualified local
2government" means a unit of local government approved by the
3Director and participating in a program created under
4subsection (i) of Section 10 of this Act.
5    (t) "Qualified rehabilitation facility" means any
6not-for-profit organization that is accredited by the
7Commission on Accreditation of Rehabilitation Facilities or
8certified by the Department of Human Services (as successor to
9the Department of Mental Health and Developmental
10Disabilities) to provide services to persons with disabilities
11and which receives funds from the State of Illinois for
12providing those services, approved by the Director and
13participating in a program created under subsection (j) of
14Section 10 of this Act.
15    (u) "Qualified domestic violence shelter or service" means
16any Illinois domestic violence shelter or service and its
17administrative offices funded by the Department of Human
18Services (as successor to the Illinois Department of Public
19Aid), approved by the Director and participating in a program
20created under subsection (k) of Section 10.
21    (v) "TRS benefit recipient" means a person who:
22        (1) is not a "member" as defined in this Section; and
23        (2) is receiving a monthly benefit or retirement
24    annuity under Article 16 of the Illinois Pension Code; and
25        (3) either (i) has at least 8 years of creditable
26    service under Article 16 of the Illinois Pension Code, or

 

 

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1    (ii) was enrolled in the health insurance program offered
2    under that Article on January 1, 1996, or (iii) is the
3    survivor of a benefit recipient who had at least 8 years of
4    creditable service under Article 16 of the Illinois Pension
5    Code or was enrolled in the health insurance program
6    offered under that Article on the effective date of this
7    amendatory Act of 1995, or (iv) is a recipient or survivor
8    of a recipient of a disability benefit under Article 16 of
9    the Illinois Pension Code.
10    (w) "TRS dependent beneficiary" means a person who:
11        (1) is not a "member" or "dependent" as defined in this
12    Section; and
13        (2) is a TRS benefit recipient's: (A) spouse, (B)
14    dependent parent who is receiving at least half of his or
15    her support from the TRS benefit recipient, or (C) natural,
16    step, adjudicated, or adopted child who is (i) under age
17    26, (ii) was, on January 1, 1996, participating as a
18    dependent beneficiary in the health insurance program
19    offered under Article 16 of the Illinois Pension Code, or
20    (iii) age 19 or over who is mentally or physically disabled
21    from a cause originating prior to the age of 19 (age 26 if
22    enrolled as an adult child).
23    "TRS dependent beneficiary" does not include, as indicated
24under paragraph (2) of this subsection (w), a dependent of the
25survivor of a TRS benefit recipient who first becomes a
26dependent of a survivor of a TRS benefit recipient on or after

 

 

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1the effective date of this amendatory Act of the 97th General
2Assembly unless that dependent would have been eligible for
3coverage as a dependent of the deceased TRS benefit recipient
4upon whom the survivor benefit is based.
5    (x) "Military leave" refers to individuals in basic
6training for reserves, special/advanced training, annual
7training, emergency call up, activation by the President of the
8United States, or any other training or duty in service to the
9United States Armed Forces.
10    (y) (Blank).
11    (z) "Community college benefit recipient" means a person
12who:
13        (1) is not a "member" as defined in this Section; and
14        (2) is receiving a monthly survivor's annuity or
15    retirement annuity under Article 15 of the Illinois Pension
16    Code; and
17        (3) either (i) was a full-time employee of a community
18    college district or an association of community college
19    boards created under the Public Community College Act
20    (other than an employee whose last employer under Article
21    15 of the Illinois Pension Code was a community college
22    district subject to Article VII of the Public Community
23    College Act) and was eligible to participate in a group
24    health benefit plan as an employee during the time of
25    employment with a community college district (other than a
26    community college district subject to Article VII of the

 

 

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1    Public Community College Act) or an association of
2    community college boards, or (ii) is the survivor of a
3    person described in item (i).
4    (aa) "Community college dependent beneficiary" means a
5person who:
6        (1) is not a "member" or "dependent" as defined in this
7    Section; and
8        (2) is a community college benefit recipient's: (A)
9    spouse, (B) dependent parent who is receiving at least half
10    of his or her support from the community college benefit
11    recipient, or (C) natural, step, adjudicated, or adopted
12    child who is (i) under age 26, or (ii) age 19 or over and
13    mentally or physically disabled from a cause originating
14    prior to the age of 19 (age 26 if enrolled as an adult
15    child).
16    "Community college dependent beneficiary" does not
17include, as indicated under paragraph (2) of this subsection
18(aa), a dependent of the survivor of a community college
19benefit recipient who first becomes a dependent of a survivor
20of a community college benefit recipient on or after the
21effective date of this amendatory Act of the 97th General
22Assembly unless that dependent would have been eligible for
23coverage as a dependent of the deceased community college
24benefit recipient upon whom the survivor annuity is based.
25    (bb) "Qualified child advocacy center" means any Illinois
26child advocacy center and its administrative offices funded by

 

 

HB0096- 17 -LRB098 05512 JDS 35547 b

1the Department of Children and Family Services, as defined by
2the Children's Advocacy Center Act (55 ILCS 80/), approved by
3the Director and participating in a program created under
4subsection (n) of Section 10.
5    (cc) "New university benefit recipient" means a person who:
6        (1) is not a "member" as defined in this Section;
7        (2) is not a "community college benefit recipient" as
8    defined in this Section;
9        (3) is receiving a monthly survivor's annuity or
10    retirement annuity under Article 15 of the Illinois Pension
11    Code; and
12        (4) was a full-time employee of an employer listed
13    under Section 15-106 of the Illinois Pension Code.
14    (dd) "New university dependent beneficiary" means a person
15who:
16        (1) is not a "member" or "dependent" as defined in this
17    Section;
18        (2) is not a "community college dependent beneficiary"
19    as defined in this Section; and
20        (3) is a new university benefit recipient's: (A)
21    spouse, (B) dependent parent who is receiving at least half
22    of his or her support from the new university benefit
23    recipient, or (C) natural, step, adjudicated, or adopted
24    child who is (i) under age 26, or (ii) age 19 or over and
25    mentally or physically disabled from a cause originating
26    prior to the age of 19 (age 26 if enrolled as an adult

 

 

HB0096- 18 -LRB098 05512 JDS 35547 b

1    child).
2(Source: P.A. 96-756, eff. 1-1-10; 96-1519, eff. 2-4-11;
397-668, eff. 1-13-12; 97-695, eff. 7-1-12.)
 
4    (5 ILCS 375/6.6)
5    Sec. 6.6. Contributions to the Teacher Health Insurance
6Security Fund.
7    (a) Beginning July 1, 1995, all active contributors of the
8Teachers' Retirement System (established under Article 16 of
9the Illinois Pension Code) who are not employees of a
10department as defined in Section 3 of this Act shall make
11contributions toward the cost of annuitant and survivor health
12benefits. These contributions shall be at the following rates:
13until January 1, 2002, 0.5% of salary; beginning January 1,
142002, 0.65% of salary; beginning July 1, 2003, 0.75% of salary;
15beginning July 1, 2005, 0.80% of salary; beginning July 1,
162007, a percentage of salary to be determined by the Department
17of Central Management Services by rule, which in each fiscal
18year shall not exceed 105% of the percentage of salary actually
19required to be paid in the previous fiscal year.
20    These contributions shall be deducted by the employer and
21paid to the System as service agent for the Department of
22Central Management Services. The System may use the same
23processes for collecting the contributions required by this
24subsection that it uses to collect contributions received from
25school districts and other covered employers under Sections

 

 

HB0096- 19 -LRB098 05512 JDS 35547 b

116-154 and 16-155 of the Illinois Pension Code.
2    An employer may agree to pick up or pay the contributions
3required under this subsection on behalf of the teacher; such
4contributions shall be deemed to have to have been paid by the
5teacher. Beginning January 1, 2002, if the employer does not
6directly pay the required member contribution, then the
7employer shall reduce the member's salary by an amount equal to
8the required contribution and shall then pay the contribution
9on behalf of the member. This reduction shall not change the
10amounts reported as creditable earnings to the Teachers'
11Retirement System.
12    A person who purchases optional service credit under
13Article 16 of the Illinois Pension Code for a period after June
1430, 1995 must also make a contribution under this subsection
15for that optional credit, at the rate provided in subsection
16(a), based on the salary used in computing the optional service
17credit, plus interest on this employee contribution. This
18contribution shall be collected by the System as service agent
19for the Department of Central Management Services. The
20contribution required under this subsection for the optional
21service credit must be paid in full before any annuity based on
22that credit begins.
23    (a-5) Beginning January 1, 2002, every employer of a
24teacher (other than an employer that is a department as defined
25in Section 3 of this Act) shall pay an employer contribution
26toward the cost of annuitant and survivor health benefits.

 

 

HB0096- 20 -LRB098 05512 JDS 35547 b

1These contributions shall be computed as follows:
2        (1) Beginning January 1, 2002 through June 30, 2003,
3    the employer contribution shall be equal to 0.4% of each
4    teacher's salary.
5        (2) Beginning July 1, 2003, the employer contribution
6    shall be equal to 0.5% of each teacher's salary.
7        (3) Beginning July 1, 2005, the employer contribution
8    shall be equal to 0.6% of each teacher's salary.
9        (4) Beginning July 1, 2007, the employer contribution
10    shall be a percentage of each teacher's salary to be
11    determined by the Department of Central Management
12    Services by rule, which in each fiscal year shall not
13    exceed 105% of the percentage of each teacher's salary
14    actually required to be paid in the previous fiscal year.
15    These contributions shall be paid by the employer to the
16System as service agent for the Department of Central
17Management Services. The System may use the same processes for
18collecting the contributions required by this subsection that
19it uses to collect contributions received from school districts
20and other covered employers under the Illinois Pension Code.
21    The school district or other employing unit may pay these
22employer contributions out of any source of funding available
23for that purpose and shall forward the contributions to the
24System on the schedule established for the payment of member
25contributions.
26    (b) The Teachers' Retirement System shall promptly deposit

 

 

HB0096- 21 -LRB098 05512 JDS 35547 b

1all moneys collected under subsections (a) and (a-5) of this
2Section into the Teacher Health Insurance Security Fund created
3in Section 6.5 of this Act. The moneys collected under this
4Section shall be used only for the purposes authorized in
5Section 6.5 of this Act and shall not be considered to be
6assets of the Teachers' Retirement System. Contributions made
7under this Section are not transferable to other pension funds
8or retirement systems and are not refundable upon termination
9of service.
10    (c) On or before November 15 of each year, the Board of
11Trustees of the Teachers' Retirement System shall certify to
12the Governor, the Director of Central Management Services, and
13the State Comptroller its estimate of the total amount of
14contributions to be paid under subsection (a) of this Section
156.6 for the next fiscal year. The amount certified shall be
16decreased or increased each year by the amount that the actual
17active teacher contributions either fell short of or exceeded
18the estimate used by the Board in making the certification for
19the previous fiscal year. The certification shall include a
20detailed explanation of the methods and information that the
21Board relied upon in preparing its estimate. As soon as
22possible after the effective date of this amendatory Act of the
2392nd General Assembly, the Board shall recalculate and
24recertify its certifications for fiscal years 2002 and 2003.
25    (d) Beginning in fiscal year 1996 and ending with the close
26of fiscal year 2013, on the first day of each month, or as soon

 

 

HB0096- 22 -LRB098 05512 JDS 35547 b

1thereafter as may be practical, the State Treasurer and the
2State Comptroller shall transfer from the General Revenue Fund
3to the Teacher Health Insurance Security Fund 1/12 of the
4annual amount appropriated for that fiscal year to the State
5Comptroller for deposit into the Teacher Health Insurance
6Security Fund under Section 1.3 of the State Pension Funds
7Continuing Appropriation Act.
8    (e) Except where otherwise specified in this Section, the
9definitions that apply to Article 16 of the Illinois Pension
10Code apply to this Section.
11    (f) (Blank).
12(Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
 
13    (5 ILCS 375/6.10)
14    Sec. 6.10. Contributions to the Community College Health
15Insurance Security Fund.
16    (a) Beginning January 1, 1999, every active contributor of
17the State Universities Retirement System (established under
18Article 15 of the Illinois Pension Code) who (1) is a full-time
19employee of a community college district (other than a
20community college district subject to Article VII of the Public
21Community College Act) or an association of community college
22boards and (2) is not an employee as defined in Section 3 of
23this Act shall make contributions toward the cost of community
24college annuitant and survivor health benefits at the rate of
250.50% of salary.

 

 

HB0096- 23 -LRB098 05512 JDS 35547 b

1    These contributions shall be deducted by the employer and
2paid to the State Universities Retirement System as service
3agent for the Department of Central Management Services. The
4System may use the same processes for collecting the
5contributions required by this subsection that it uses to
6collect the contributions received from those employees under
7Section 15-157 of the Illinois Pension Code. An employer may
8agree to pick up or pay the contributions required under this
9subsection on behalf of the employee; such contributions shall
10be deemed to have been paid by the employee.
11    The State Universities Retirement System shall promptly
12deposit all moneys collected under this subsection (a) into the
13Community College Health Insurance Security Fund created in
14Section 6.9 of this Act. The moneys collected under this
15Section shall be used only for the purposes authorized in
16Section 6.9 of this Act and shall not be considered to be
17assets of the State Universities Retirement System.
18Contributions made under this Section are not transferable to
19other pension funds or retirement systems and are not
20refundable upon termination of service.
21    (b) Beginning January 1, 1999, every community college
22district (other than a community college district subject to
23Article VII of the Public Community College Act) or association
24of community college boards that is an employer under the State
25Universities Retirement System shall contribute toward the
26cost of the community college health benefits provided under

 

 

HB0096- 24 -LRB098 05512 JDS 35547 b

1Section 6.9 of this Act an amount equal to 0.50% of the salary
2paid to its full-time employees who participate in the State
3Universities Retirement System and are not members as defined
4in Section 3 of this Act.
5    These contributions shall be paid by the employer to the
6State Universities Retirement System as service agent for the
7Department of Central Management Services. The System may use
8the same processes for collecting the contributions required by
9this subsection that it uses to collect the contributions
10received from those employers under Section 15-155 of the
11Illinois Pension Code.
12    The State Universities Retirement System shall promptly
13deposit all moneys collected under this subsection (b) into the
14Community College Health Insurance Security Fund created in
15Section 6.9 of this Act. The moneys collected under this
16Section shall be used only for the purposes authorized in
17Section 6.9 of this Act and shall not be considered to be
18assets of the State Universities Retirement System.
19Contributions made under this Section are not transferable to
20other pension funds or retirement systems and are not
21refundable upon termination of service.
22    The Department of Healthcare and Family Services, or any
23successor agency designated to procure healthcare contracts
24pursuant to this Act, is authorized to establish funds,
25separate accounts provided by any bank or banks as defined by
26the Illinois Banking Act, or separate accounts provided by any

 

 

HB0096- 25 -LRB098 05512 JDS 35547 b

1savings and loan association or associations as defined by the
2Illinois Savings and Loan Act of 1985 to be held by the
3Director, outside the State treasury, for the purpose of
4receiving the transfer of moneys from the Community College
5Health Insurance Security Fund. The Department may promulgate
6rules further defining the methodology for the transfers. Any
7interest earned by moneys in the funds or accounts shall inure
8to the Community College Health Insurance Security Fund. The
9transferred moneys, and interest accrued thereon, shall be used
10exclusively for transfers to administrative service
11organizations or their financial institutions for payments of
12claims to claimants and providers under the self-insurance
13health plan. The transferred moneys, and interest accrued
14thereon, shall not be used for any other purpose including, but
15not limited to, reimbursement of administration fees due the
16administrative service organization pursuant to its contract
17or contracts with the Department.
18    (c) On or before November 15 of each year, the Board of
19Trustees of the State Universities Retirement System shall
20certify to the Governor, the Director of Central Management
21Services, and the State Comptroller its estimate of the total
22amount of contributions to be paid under subsection (a) of this
23Section for the next fiscal year. Beginning in fiscal year
242008, the amount certified shall be decreased or increased each
25year by the amount that the actual active employee
26contributions either fell short of or exceeded the estimate

 

 

HB0096- 26 -LRB098 05512 JDS 35547 b

1used by the Board in making the certification for the previous
2fiscal year. The State Universities Retirement System shall
3calculate the amount of actual active employee contributions in
4fiscal years 1999 through 2005. Based upon this calculation,
5the fiscal year 2008 certification shall include an amount
6equal to the cumulative amount that the actual active employee
7contributions either fell short of or exceeded the estimate
8used by the Board in making the certification for those fiscal
9years. The certification shall include a detailed explanation
10of the methods and information that the Board relied upon in
11preparing its estimate. As soon as possible after the effective
12date of this Section, the Board shall submit its estimate for
13fiscal year 1999.
14    (d) Beginning in fiscal year 1999 and ending with the close
15of fiscal year 2013, on the first day of each month, or as soon
16thereafter as may be practical, the State Treasurer and the
17State Comptroller shall transfer from the General Revenue Fund
18to the Community College Health Insurance Security Fund 1/12 of
19the annual amount appropriated for that fiscal year to the
20State Comptroller for deposit into the Community College Health
21Insurance Security Fund under Section 1.4 of the State Pension
22Funds Continuing Appropriation Act.
23    (e) Except where otherwise specified in this Section, the
24definitions that apply to Article 15 of the Illinois Pension
25Code apply to this Section.
26(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
 

 

 

HB0096- 27 -LRB098 05512 JDS 35547 b

1    (5 ILCS 375/6.10A new)
2    Sec. 6.10A. Health benefits for new university benefit
3recipients and new university dependent beneficiaries.
4    (a) Purpose. It is the purpose of this amendatory Act of
598th General Assembly to establish a uniform program of health
6benefits for new university benefit recipients and their
7dependent beneficiaries under the administration of the
8Department of Central Management Services.
9    (b) Creation of program. Beginning July 1, 2013, the
10Department of Central Management Services shall be responsible
11for administering a program of health benefits for new
12university benefit recipients and new university dependent
13beneficiaries under this Section. The State Universities
14Retirement System and the various employers shall cooperate
15with the Department in this endeavor.
16    (c) Eligibility. All new university benefit recipients and
17new university dependent beneficiaries shall be eligible to
18participate in the program established under this Section,
19without any interruption or delay in coverage or limitation as
20to pre-existing medical conditions. Eligibility to participate
21shall be determined by the State Universities Retirement
22System. Eligibility information shall be communicated to the
23Department of Central Management Services in a format
24acceptable to the Department.
25    (d) Coverage. The health benefit coverage provided under

 

 

HB0096- 28 -LRB098 05512 JDS 35547 b

1this Section shall be a program of health, dental, and vision
2benefits.
3    The program of health benefits under this Section may
4include any or all of the benefit limitations, including, but
5not limited to, a reduction in benefits based on eligibility
6for federal medicare benefits, that are provided under
7subsection (a) of Section 6 of this Act for other health
8benefit programs under this Act.
9    (e) Insurance rates and premiums. The Director shall
10determine the insurance rates and premiums for new university
11benefit recipients and new university dependent beneficiaries.
12Rates and premiums may be based in part on age and eligibility
13for federal Medicare coverage. The Director shall also
14determine premiums that will allow for the establishment of an
15actuarially sound reserve for this program.
16    The cost of health benefits under the program shall be paid
17as follows:
18        (1) For a new university benefit recipient, up to 75%
19    of the total insurance rate shall be paid from the State
20    Universities Health Insurance Security Fund.
21        (2) The balance of the rate of insurance, including the
22    entire premium for any coverage for new university
23    dependent beneficiaries that has been elected, shall be
24    paid by deductions authorized by the new university benefit
25    recipient to be withheld from his or her monthly annuity or
26    benefit payment from the State Universities Retirement

 

 

HB0096- 29 -LRB098 05512 JDS 35547 b

1    System; except that (i) if the balance of the cost of
2    coverage exceeds the amount of the monthly annuity or
3    benefit payment, the difference shall be paid directly to
4    the State Universities Retirement System by the new
5    university benefit recipient, and (ii) all or part of the
6    balance of the cost of coverage may, at the option of the
7    employer, be paid to the State Universities Retirement
8    System by the employer from which the new university
9    benefit recipient retired. The State Universities
10    Retirement System shall promptly deposit all moneys
11    withheld by or paid to it under this subdivision (e)(2)
12    into the State Universities Health Insurance Security
13    Fund. These moneys shall not be considered assets of the
14    State Universities Retirement System.
15    (f) Financing. All revenues arising from the
16administration of the health benefit program established under
17this Section shall be deposited into the State Universities
18Health Insurance Security Fund, which is hereby created as a
19nonappropriated trust fund to be held outside the State
20Treasury, with the State Treasurer as custodian. Any interest
21earned on moneys in the State Universities Health Insurance
22Security Fund shall be deposited into the Fund.
23    Moneys in the State Universities Health Insurance Security
24Fund shall be used only to pay the costs of the health benefit
25program established under this Section, including associated
26administrative costs and the establishment of a program

 

 

HB0096- 30 -LRB098 05512 JDS 35547 b

1reserve. Beginning January 1, 2013, the Department of Central
2Management Services may make expenditures from the State
3Universities Health Insurance Security Fund for those costs.
4    (g) Contract for benefits. The Director shall by contract,
5self-insurance, or otherwise make available the program of
6health benefits for new university benefit recipients and their
7new university dependent beneficiaries that is provided for in
8this Section. The contract or other arrangement for the
9provision of these health benefits shall be on terms deemed by
10the Director to be in the best interest of the State of
11Illinois and the new university benefit recipients based on,
12but not limited to, such criteria as administrative cost,
13service capabilities of the carrier or other contractor, and
14the costs of the benefits.
15    (h) Continuation of program. It is the intention of the
16General Assembly that the program of health benefits provided
17under this Section be maintained on an ongoing, affordable
18basis. The program of health benefits provided under this
19Section may be amended by the State and is not intended to be a
20pension or retirement benefit subject to protection under
21Article XIII, Section 5 of the Illinois Constitution.
22    (i) Other health benefit plans. A health benefit plan
23provided by an employer under the terms of a collective
24bargaining agreement in effect on or prior to the effective
25date of this amendatory Act of 98th General Assembly shall
26continue in force according to the terms of that agreement,

 

 

HB0096- 31 -LRB098 05512 JDS 35547 b

1unless otherwise mutually agreed by the parties to that
2agreement and the affected retiree. A new university benefit
3recipient or new university dependent beneficiary whose
4coverage under such a plan expires shall begin participating in
5the program established under this Section without any
6interruption or delay in coverage or limitation as to
7pre-existing medical conditions.
8    This Act does not prohibit any employer from offering
9additional health benefits for its retirees or their dependents
10or survivors.
 
11    (5 ILCS 375/6.10B new)
12    Sec. 6.10B. State Universities Health Insurance Security
13Fund.
14    (a) Beginning July 1, 2013, every active contributor of the
15State Universities Retirement System (established under
16Article 15 of the Illinois Pension Code) who (1) is employed on
17a full-time basis by an employer listed under Section 15-106,
18other than a community college district or an association of
19community college boards, and (2) is not an employee as defined
20in Section 3 of this Act shall make contributions toward the
21cost of new university benefit recipient and new university
22dependent beneficiary health benefits at the rate of 0.50% of
23salary.
24    These contributions shall be deducted by the employer and
25paid to the State Universities Retirement System as service

 

 

HB0096- 32 -LRB098 05512 JDS 35547 b

1agent for the Department of Central Management Services. The
2System may use the same processes for collecting the
3contributions required by this subsection that it uses to
4collect the contributions received under Section 15-157 of the
5Illinois Pension Code. An employer may agree to pick up or pay
6the contributions required under this subsection; such
7contributions shall be deemed to have been paid by the active
8contributor.
9    The State Universities Retirement System shall promptly
10deposit all moneys collected under this subsection (a) into the
11State Universities Health Insurance Security Fund created in
12Section 6.10A of this Act. The moneys collected under this
13Section shall be used only for the purposes authorized in
14Section 6.10A of this Act and shall not be considered to be
15assets of the State Universities Retirement System.
16Contributions made under this Section are not transferable to
17other pension funds or retirement systems and are not
18refundable upon termination of service.
19    (b) Beginning July 1, 2013, every employer listed in
20Section 15-106 of the Illinois Pension Code, other than a
21community college district or association of community college
22boards, shall contribute toward the cost of the new university
23benefit recipient and new university dependent beneficiary
24health benefits provided under Section 6.10A of this Act an
25amount equal to 0.50% of the salary paid to each active
26contributor who is subject to subsection (a).

 

 

HB0096- 33 -LRB098 05512 JDS 35547 b

1    These contributions shall be paid by the employer to the
2State Universities Retirement System as service agent for the
3Department of Central Management Services. The System may use
4the same processes for collecting the contributions required by
5this subsection that it uses to collect the contributions
6received from those employers under Section 15-155 of the
7Illinois Pension Code.
8    The State Universities Retirement System shall promptly
9deposit all moneys collected under this subsection (b) into the
10State Universities Health Insurance Security Fund created in
11Section 6.10A of this Act. The moneys collected under this
12Section shall be used only for the purposes authorized in
13Section 6.10A of this Act and shall not be considered to be
14assets of the State Universities Retirement System.
15Contributions made under this Section are not transferable to
16other pension funds or retirement systems and are not
17refundable upon termination of service.
18    The Department of Central Management Services, or any
19successor agency designated to procure healthcare contracts
20pursuant to this Act, is authorized to establish funds,
21separate accounts provided by any bank or banks as defined by
22the Illinois Banking Act, or separate accounts provided by any
23savings and loan association or associations as defined by the
24Illinois Savings and Loan Act of 1985 to be held by the
25Director, outside the State treasury, for the purpose of
26receiving the transfer of moneys from the State Universities

 

 

HB0096- 34 -LRB098 05512 JDS 35547 b

1Health Insurance Security Fund. The Department may promulgate
2rules under the Illinois Administrative Procedure Act further
3defining the methodology for the transfers. Any interest earned
4by moneys in the funds or accounts shall inure to the State
5Universities Health Insurance Security Fund. The transferred
6moneys, and interest accrued thereon, shall be used exclusively
7for transfers to administrative service organizations or their
8financial institutions for payments of claims to claimants and
9providers under the self-insurance health plan. The
10transferred moneys, and interest accrued thereon, shall not be
11used for any other purpose including, but not limited to,
12reimbursement of administration fees due the administrative
13service organization pursuant to its contract or contracts with
14the Department.
15    (c) On or before November 15 of each year, the Board of
16Trustees of the State Universities Retirement System shall
17certify to the Governor, the Director of Central Management
18Services, and the State Comptroller its estimate of the total
19amount of contributions to be paid under subsection (a) of this
20Section for the next fiscal year. Beginning in fiscal year
212015, the amount certified shall be decreased or increased each
22year by the amount that the actual active employee
23contributions either fell short of or exceeded the estimate
24used by the Board in making the certification for the previous
25fiscal year.
26    (d) Except where otherwise specified in this Section, the

 

 

HB0096- 35 -LRB098 05512 JDS 35547 b

1definitions that apply to Article 15 of the Illinois Pension
2Code apply to this Section.
 
3    Section 10. The Illinois Pension Code is amended by
4changing Sections 2-105, 2-124, 14-103.06, 14-131, 15-134,
515-155, 16-107, 16-158, 18-110, and 18-131 and by adding
6Sections 1-167 and 1-168 as follows:
 
7    (40 ILCS 5/1-167 new)
8    Sec. 1-167. Tax-sheltered annuity for eligible employees
9and teachers.
10    (a) Each employer under Article 15 that employs one or more
11persons who are eligible to participate in a tax-sheltered
12annuity retirement plan under Section 403(b) of the Internal
13Revenue Code of 1986 shall establish one of those plans and
14offer to each of its eligible employees who first becomes an
15employee on or after the effective of this amendatory Act of
16the 98th General Assembly the ability to participate in that
17plan.
18    (b) Each employer under Article 16 that employs one or more
19persons who are eligible to participate in a tax-sheltered
20annuity retirement plan under Section 403(b) of the Internal
21Revenue Code of 1986 shall establish one of those plans and
22offer to each of its eligible teachers who first becomes a
23teacher on or after the effective of this amendatory Act of the
2498th General Assembly the ability to participate in that plan.
 

 

 

HB0096- 36 -LRB098 05512 JDS 35547 b

1    (40 ILCS 5/1-168 new)
2    Sec. 1-168. Mandatory benefit election. Notwithstanding
3any other provision of this Code, within 5 years after the
4effective date of this amendatory Act of the 98th General
5Assembly, each person who, on the effective date of this
6amendatory Act of the 98th General Assembly, is a member or
7participant of a retirement system established under Article 2,
814, 15, 16, or 18 of this Code shall elect either to
9participate in or opt out of participation in the retirement
10systems created under those Articles. A person who fails to
11make the required election within the time period specified
12shall be deemed to have opted out of participation in the
13pension funds and retirement systems established under this
14Code.
 
15    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
16    Sec. 2-105. Member. "Member": Members of the General
17Assembly of this State including persons who enter military
18service while a member of the General Assembly and any person
19serving as Governor, Lieutenant Governor, Secretary of State,
20Treasurer, Comptroller, or Attorney General for the period of
21service in such office.
22    Any person who has served for 10 or more years as Clerk or
23Assistant Clerk of the House of Representatives, Secretary or
24Assistant Secretary of the Senate, or any combination thereof,

 

 

HB0096- 37 -LRB098 05512 JDS 35547 b

1may elect to become a member of this system while thenceforth
2engaged in such service by filing a written election with the
3board. Any person so electing shall be deemed an active member
4of the General Assembly for the purpose of validating and
5transferring any service credits earned under any of the funds
6and systems established under Articles 3 through 18 of this
7Code.
8    Notwithstanding any other provision of this Code, on and
9after the effective date of this amendatory Act of the 98th
10General Assembly, a person may not become a member of the
11retirement system created under this Article.
12(Source: P.A. 85-1008.)
 
13    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
14    Sec. 2-124. Contributions by State.
15    (a) The State shall make contributions to the System by
16appropriations of amounts which, together with the
17contributions of participants, interest earned on investments,
18and other income will meet the cost of maintaining and
19administering the System on a 90% funded basis in accordance
20with actuarial recommendations.
21    (b) The Board shall determine the amount of State
22contributions required for each fiscal year on the basis of the
23actuarial tables and other assumptions adopted by the Board and
24the prescribed rate of interest, using the formula in
25subsection (c).

 

 

HB0096- 38 -LRB098 05512 JDS 35547 b

1    (c) For State fiscal year 2014 and each fiscal year
2thereafter, the minimum contribution to the System to be made
3by the State for each fiscal year shall be 10.2% of the
4applicable employee payroll.
5    For State fiscal years 2012 and 2013 through 2045, the
6minimum contribution to the System to be made by the State for
7each fiscal year shall be an amount determined by the System to
8be sufficient to bring the total assets of the System up to 90%
9of the total actuarial liabilities of the System by the end of
10State fiscal year 2045. In making these determinations, the
11required State contribution shall be calculated each year as a
12level percentage of payroll over the years remaining to and
13including fiscal year 2045 and shall be determined under the
14projected unit credit actuarial cost method.
15    For State fiscal years 1996 through 2005, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18so that by State fiscal year 2011, the State is contributing at
19the rate required under this Section.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2006 is
22$4,157,000.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2007 is
25$5,220,300.
26    For each of State fiscal years 2008 through 2009, the State

 

 

HB0096- 39 -LRB098 05512 JDS 35547 b

1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3from the required State contribution for State fiscal year
42007, so that by State fiscal year 2011, the State is
5contributing at the rate otherwise required under this Section.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2010 is
8$10,454,000 and shall be made from the proceeds of bonds sold
9in fiscal year 2010 pursuant to Section 7.2 of the General
10Obligation Bond Act, less (i) the pro rata share of bond sale
11expenses determined by the System's share of total bond
12proceeds, (ii) any amounts received from the General Revenue
13Fund in fiscal year 2010, and (iii) any reduction in bond
14proceeds due to the issuance of discounted bonds, if
15applicable.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2011 is
18the amount recertified by the System on or before April 1, 2011
19pursuant to Section 2-134 and shall be made from the proceeds
20of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
21the General Obligation Bond Act, less (i) the pro rata share of
22bond sale expenses determined by the System's share of total
23bond proceeds, (ii) any amounts received from the General
24Revenue Fund in fiscal year 2011, and (iii) any reduction in
25bond proceeds due to the issuance of discounted bonds, if
26applicable.

 

 

HB0096- 40 -LRB098 05512 JDS 35547 b

1    Beginning in State fiscal year 2046, the minimum State
2contribution for each fiscal year shall be the amount needed to
3maintain the total assets of the System at 90% of the total
4actuarial liabilities of the System.
5    Amounts received by the System pursuant to Section 25 of
6the Budget Stabilization Act or Section 8.12 of the State
7Finance Act in any fiscal year do not reduce and do not
8constitute payment of any portion of the minimum State
9contribution required under this Article in that fiscal year.
10Such amounts shall not reduce, and shall not be included in the
11calculation of, the required State contributions under this
12Article in any future year until the System has reached a
13funding ratio of at least 90%. A reference in this Article to
14the "required State contribution" or any substantially similar
15term does not include or apply to any amounts payable to the
16System under Section 25 of the Budget Stabilization Act.
17    Notwithstanding any other provision of this Section, the
18required State contribution for State fiscal year 2005 and for
19fiscal year 2008 and each fiscal year thereafter, as calculated
20under this Section and certified under Section 2-134, shall not
21exceed an amount equal to (i) the amount of the required State
22contribution that would have been calculated under this Section
23for that fiscal year if the System had not received any
24payments under subsection (d) of Section 7.2 of the General
25Obligation Bond Act, minus (ii) the portion of the State's
26total debt service payments for that fiscal year on the bonds

 

 

HB0096- 41 -LRB098 05512 JDS 35547 b

1issued in fiscal year 2003 for the purposes of that Section
27.2, as determined and certified by the Comptroller, that is
3the same as the System's portion of the total moneys
4distributed under subsection (d) of Section 7.2 of the General
5Obligation Bond Act. In determining this maximum for State
6fiscal years 2008 through 2010, however, the amount referred to
7in item (i) shall be increased, as a percentage of the
8applicable employee payroll, in equal increments calculated
9from the sum of the required State contribution for State
10fiscal year 2007 plus the applicable portion of the State's
11total debt service payments for fiscal year 2007 on the bonds
12issued in fiscal year 2003 for the purposes of Section 7.2 of
13the General Obligation Bond Act, so that, by State fiscal year
142011, the State is contributing at the rate otherwise required
15under this Section.
16    (d) For purposes of determining the required State
17contribution to the System, the value of the System's assets
18shall be equal to the actuarial value of the System's assets,
19which shall be calculated as follows:
20    As of June 30, 2008, the actuarial value of the System's
21assets shall be equal to the market value of the assets as of
22that date. In determining the actuarial value of the System's
23assets for fiscal years after June 30, 2008, any actuarial
24gains or losses from investment return incurred in a fiscal
25year shall be recognized in equal annual amounts over the
265-year period following that fiscal year.

 

 

HB0096- 42 -LRB098 05512 JDS 35547 b

1    (e) For purposes of determining the required State
2contribution to the system for a particular year, the actuarial
3value of assets shall be assumed to earn a rate of return equal
4to the system's actuarially assumed rate of return.
5(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
696-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
77-13-12.)
 
8    (40 ILCS 5/14-103.06)  (from Ch. 108 1/2, par. 14-103.06)
9    Sec. 14-103.06. Member. "Member": Any employee included in
10the membership of the system; and any former employee who made
11contributions to the system and has not received a refund and
12who is not receiving a retirement annuity under this Article.
13    Notwithstanding any other provision of this Code, on and
14after the effective date of this amendatory Act of the 98th
15General Assembly, a person may not become a member of the
16retirement system created under this Article.
17(Source: P.A. 80-841.)
 
18    (40 ILCS 5/14-131)
19    Sec. 14-131. Contributions by State.
20    (a) The State shall make contributions to the System by
21appropriations of amounts which, together with other employer
22contributions from trust, federal, and other funds, employee
23contributions, investment income, and other income, will be
24sufficient to meet the cost of maintaining and administering

 

 

HB0096- 43 -LRB098 05512 JDS 35547 b

1the System on a 90% funded basis in accordance with actuarial
2recommendations.
3    For the purposes of this Section and Section 14-135.08,
4references to State contributions refer only to employer
5contributions and do not include employee contributions that
6are picked up or otherwise paid by the State or a department on
7behalf of the employee.
8    (b) The Board shall determine the total amount of State
9contributions required for each fiscal year on the basis of the
10actuarial tables and other assumptions adopted by the Board,
11using the formula in subsection (e).
12    The Board shall also determine a State contribution rate
13for each fiscal year, expressed as a percentage of payroll,
14based on the total required State contribution for that fiscal
15year (less the amount received by the System from
16appropriations under Section 8.12 of the State Finance Act and
17Section 1 of the State Pension Funds Continuing Appropriation
18Act, if any, for the fiscal year ending on the June 30
19immediately preceding the applicable November 15 certification
20deadline), the estimated payroll (including all forms of
21compensation) for personal services rendered by eligible
22employees, and the recommendations of the actuary.
23    For the purposes of this Section and Section 14.1 of the
24State Finance Act, the term "eligible employees" includes
25employees who participate in the System, persons who may elect
26to participate in the System but have not so elected, persons

 

 

HB0096- 44 -LRB098 05512 JDS 35547 b

1who are serving a qualifying period that is required for
2participation, and annuitants employed by a department as
3described in subdivision (a)(1) or (a)(2) of Section 14-111.
4    (c) Contributions shall be made by the several departments
5for each pay period by warrants drawn by the State Comptroller
6against their respective funds or appropriations based upon
7vouchers stating the amount to be so contributed. These amounts
8shall be based on the full rate certified by the Board under
9Section 14-135.08 for that fiscal year. From the effective date
10of this amendatory Act of the 93rd General Assembly through the
11payment of the final payroll from fiscal year 2004
12appropriations, the several departments shall not make
13contributions for the remainder of fiscal year 2004 but shall
14instead make payments as required under subsection (a-1) of
15Section 14.1 of the State Finance Act. The several departments
16shall resume those contributions at the commencement of fiscal
17year 2005.
18    (c-1) Notwithstanding subsection (c) of this Section, for
19fiscal years 2010, 2012, and 2013 only, contributions by the
20several departments are not required to be made for General
21Revenue Funds payrolls processed by the Comptroller. Payrolls
22paid by the several departments from all other State funds must
23continue to be processed pursuant to subsection (c) of this
24Section.
25    (c-2) For State fiscal years 2010, 2012, and 2013 only, on
26or as soon as possible after the 15th day of each month, the

 

 

HB0096- 45 -LRB098 05512 JDS 35547 b

1Board shall submit vouchers for payment of State contributions
2to the System, in a total monthly amount of one-twelfth of the
3fiscal year General Revenue Fund contribution as certified by
4the System pursuant to Section 14-135.08 of the Illinois
5Pension Code.
6    (d) If an employee is paid from trust funds or federal
7funds, the department or other employer shall pay employer
8contributions from those funds to the System at the certified
9rate, unless the terms of the trust or the federal-State
10agreement preclude the use of the funds for that purpose, in
11which case the required employer contributions shall be paid by
12the State. From the effective date of this amendatory Act of
13the 93rd General Assembly through the payment of the final
14payroll from fiscal year 2004 appropriations, the department or
15other employer shall not pay contributions for the remainder of
16fiscal year 2004 but shall instead make payments as required
17under subsection (a-1) of Section 14.1 of the State Finance
18Act. The department or other employer shall resume payment of
19contributions at the commencement of fiscal year 2005.
20    (e) For State fiscal year 2014 and each fiscal year
21thereafter, the minimum contribution to the System to be made
22by the State for each fiscal year shall be 10.2% of the
23applicable employee payroll.
24    For State fiscal years 2012 and 2013 through 2045, the
25minimum contribution to the System to be made by the State for
26each fiscal year shall be an amount determined by the System to

 

 

HB0096- 46 -LRB098 05512 JDS 35547 b

1be sufficient to bring the total assets of the System up to 90%
2of the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8    For State fiscal years 1996 through 2005, the State
9contribution to the System, as a percentage of the applicable
10employee payroll, shall be increased in equal annual increments
11so that by State fiscal year 2011, the State is contributing at
12the rate required under this Section; except that (i) for State
13fiscal year 1998, for all purposes of this Code and any other
14law of this State, the certified percentage of the applicable
15employee payroll shall be 5.052% for employees earning eligible
16creditable service under Section 14-110 and 6.500% for all
17other employees, notwithstanding any contrary certification
18made under Section 14-135.08 before the effective date of this
19amendatory Act of 1997, and (ii) in the following specified
20State fiscal years, the State contribution to the System shall
21not be less than the following indicated percentages of the
22applicable employee payroll, even if the indicated percentage
23will produce a State contribution in excess of the amount
24otherwise required under this subsection and subsection (a):
259.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
262002; 10.6% in FY 2003; and 10.8% in FY 2004.

 

 

HB0096- 47 -LRB098 05512 JDS 35547 b

1    Notwithstanding any other provision of this Article, the
2total required State contribution to the System for State
3fiscal year 2006 is $203,783,900.
4    Notwithstanding any other provision of this Article, the
5total required State contribution to the System for State
6fiscal year 2007 is $344,164,400.
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 General Revenue Fund contribution for
15State fiscal year 2010 is $723,703,100 and shall be made from
16the proceeds of bonds sold in fiscal year 2010 pursuant to
17Section 7.2 of the General Obligation Bond Act, less (i) the
18pro rata share of bond sale expenses determined by the System's
19share of total bond proceeds, (ii) any amounts received from
20the General Revenue Fund in fiscal year 2010, and (iii) any
21reduction in bond proceeds due to the issuance of discounted
22bonds, if applicable.
23    Notwithstanding any other provision of this Article, the
24total required State General Revenue Fund contribution for
25State fiscal year 2011 is the amount recertified by the System
26on or before April 1, 2011 pursuant to Section 14-135.08 and

 

 

HB0096- 48 -LRB098 05512 JDS 35547 b

1shall be made from the proceeds of bonds sold in fiscal year
22011 pursuant to Section 7.2 of the General Obligation Bond
3Act, less (i) the pro rata share of bond sale expenses
4determined by the System's share of total bond proceeds, (ii)
5any amounts received from the General Revenue Fund in fiscal
6year 2011, and (iii) any reduction in bond proceeds due to the
7issuance of discounted bonds, if applicable.
8    Beginning in State fiscal year 2046, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 90% of the total
11actuarial liabilities of the System.
12    Amounts received by the System pursuant to Section 25 of
13the Budget Stabilization Act or Section 8.12 of the State
14Finance Act in any fiscal year do not reduce and do not
15constitute payment of any portion of the minimum State
16contribution required under this Article in that fiscal year.
17Such amounts shall not reduce, and shall not be included in the
18calculation of, the required State contributions under this
19Article in any future year until the System has reached a
20funding ratio of at least 90%. A reference in this Article to
21the "required State contribution" or any substantially similar
22term does not include or apply to any amounts payable to the
23System under Section 25 of the Budget Stabilization Act.
24    Notwithstanding any other provision of this Section, the
25required State contribution for State fiscal year 2005 and for
26fiscal year 2008 and each fiscal year thereafter, as calculated

 

 

HB0096- 49 -LRB098 05512 JDS 35547 b

1under this Section and certified under Section 14-135.08, shall
2not exceed an amount equal to (i) the amount of the required
3State contribution that would have been calculated under this
4Section for that fiscal year if the System had not received any
5payments under subsection (d) of Section 7.2 of the General
6Obligation Bond Act, minus (ii) the portion of the State's
7total debt service payments for that fiscal year on the bonds
8issued in fiscal year 2003 for the purposes of that Section
97.2, as determined and certified by the Comptroller, that is
10the same as the System's portion of the total moneys
11distributed under subsection (d) of Section 7.2 of the General
12Obligation Bond Act. In determining this maximum for State
13fiscal years 2008 through 2010, however, the amount referred to
14in item (i) shall be increased, as a percentage of the
15applicable employee payroll, in equal increments calculated
16from the sum of the required State contribution for State
17fiscal year 2007 plus the applicable portion of the State's
18total debt service payments for fiscal year 2007 on the bonds
19issued in fiscal year 2003 for the purposes of Section 7.2 of
20the General Obligation Bond Act, so that, by State fiscal year
212011, the State is contributing at the rate otherwise required
22under this Section.
23    (f) After the submission of all payments for eligible
24employees from personal services line items in fiscal year 2004
25have been made, the Comptroller shall provide to the System a
26certification of the sum of all fiscal year 2004 expenditures

 

 

HB0096- 50 -LRB098 05512 JDS 35547 b

1for personal services that would have been covered by payments
2to the System under this Section if the provisions of this
3amendatory Act of the 93rd General Assembly had not been
4enacted. Upon receipt of the certification, the System shall
5determine the amount due to the System based on the full rate
6certified by the Board under Section 14-135.08 for fiscal year
72004 in order to meet the State's obligation under this
8Section. The System shall compare this amount due to the amount
9received by the System in fiscal year 2004 through payments
10under this Section and under Section 6z-61 of the State Finance
11Act. If the amount due is more than the amount received, the
12difference shall be termed the "Fiscal Year 2004 Shortfall" for
13purposes of this Section, and the Fiscal Year 2004 Shortfall
14shall be satisfied under Section 1.2 of the State Pension Funds
15Continuing Appropriation Act. If the amount due is less than
16the amount received, the difference shall be termed the "Fiscal
17Year 2004 Overpayment" for purposes of this Section, and the
18Fiscal Year 2004 Overpayment shall be repaid by the System to
19the Pension Contribution Fund as soon as practicable after the
20certification.
21    (g) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25    As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

 

 

HB0096- 51 -LRB098 05512 JDS 35547 b

1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6    (h) For purposes of determining the required State
7contribution to the System for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the System's actuarially assumed rate of return.
10    (i) After the submission of all payments for eligible
11employees from personal services line items paid from the
12General Revenue Fund in fiscal year 2010 have been made, the
13Comptroller shall provide to the System a certification of the
14sum of all fiscal year 2010 expenditures for personal services
15that would have been covered by payments to the System under
16this Section if the provisions of this amendatory Act of the
1796th General Assembly had not been enacted. Upon receipt of the
18certification, the System shall determine the amount due to the
19System based on the full rate certified by the Board under
20Section 14-135.08 for fiscal year 2010 in order to meet the
21State's obligation under this Section. The System shall compare
22this amount due to the amount received by the System in fiscal
23year 2010 through payments under this Section. If the amount
24due is more than the amount received, the difference shall be
25termed the "Fiscal Year 2010 Shortfall" for purposes of this
26Section, and the Fiscal Year 2010 Shortfall shall be satisfied

 

 

HB0096- 52 -LRB098 05512 JDS 35547 b

1under Section 1.2 of the State Pension Funds Continuing
2Appropriation Act. If the amount due is less than the amount
3received, the difference shall be termed the "Fiscal Year 2010
4Overpayment" for purposes of this Section, and the Fiscal Year
52010 Overpayment shall be repaid by the System to the General
6Revenue Fund as soon as practicable after the certification.
7    (j) After the submission of all payments for eligible
8employees from personal services line items paid from the
9General Revenue Fund in fiscal year 2011 have been made, the
10Comptroller shall provide to the System a certification of the
11sum of all fiscal year 2011 expenditures for personal services
12that would have been covered by payments to the System under
13this Section if the provisions of this amendatory Act of the
1496th General Assembly had not been enacted. Upon receipt of the
15certification, the System shall determine the amount due to the
16System based on the full rate certified by the Board under
17Section 14-135.08 for fiscal year 2011 in order to meet the
18State's obligation under this Section. The System shall compare
19this amount due to the amount received by the System in fiscal
20year 2011 through payments under this Section. If the amount
21due is more than the amount received, the difference shall be
22termed the "Fiscal Year 2011 Shortfall" for purposes of this
23Section, and the Fiscal Year 2011 Shortfall shall be satisfied
24under Section 1.2 of the State Pension Funds Continuing
25Appropriation Act. If the amount due is less than the amount
26received, the difference shall be termed the "Fiscal Year 2011

 

 

HB0096- 53 -LRB098 05512 JDS 35547 b

1Overpayment" for purposes of this Section, and the Fiscal Year
22011 Overpayment shall be repaid by the System to the General
3Revenue Fund as soon as practicable after the certification.
4    (k) For fiscal years 2012 and 2013 only, after the
5submission of all payments for eligible employees from personal
6services line items paid from the General Revenue Fund in the
7fiscal year have been made, the Comptroller shall provide to
8the System a certification of the sum of all expenditures in
9the fiscal year for personal services. Upon receipt of the
10certification, the System shall determine the amount due to the
11System based on the full rate certified by the Board under
12Section 14-135.08 for the fiscal year in order to meet the
13State's obligation under this Section. The System shall compare
14this amount due to the amount received by the System for the
15fiscal year. If the amount due is more than the amount
16received, the difference shall be termed the "Prior Fiscal Year
17Shortfall" for purposes of this Section, and the Prior Fiscal
18Year Shortfall shall be satisfied under Section 1.2 of the
19State Pension Funds Continuing Appropriation Act. If the amount
20due is less than the amount received, the difference shall be
21termed the "Prior Fiscal Year Overpayment" for purposes of this
22Section, and the Prior Fiscal Year Overpayment shall be repaid
23by the System to the General Revenue Fund as soon as
24practicable after the certification.
25(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
2696-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.

 

 

HB0096- 54 -LRB098 05512 JDS 35547 b

11-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
2eff. 6-30-12.)
 
3    (40 ILCS 5/15-134)  (from Ch. 108 1/2, par. 15-134)
4    Sec. 15-134. Participant.
5    (a) Each person shall, as a condition of employment, become
6a participant and be subject to this Article on the date that
7he or she becomes an employee, makes an election to participate
8in, or otherwise becomes a participant in one of the retirement
9programs offered under this Article, whichever date is later.
10    An employee who becomes a participant shall continue to be
11a participant until he or she becomes an annuitant, dies or
12accepts a refund of contributions. For purposes of subsection
13(f) of Section 1-160, the term "participant" shall include a
14person receiving a retirement annuity.
15    (b) A person employed concurrently by 2 or more employers
16is eligible to participate in the system on compensation
17received from all employers.
18    (c) Notwithstanding any other provision of this Code, on
19and after the effective date of this amendatory Act of the 98th
20General Assembly, a person may not become a participant of the
21retirement system created under this Article.
22(Source: P.A. 96-1490, eff. 1-1-11.)
 
23    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
24    Sec. 15-155. Employer contributions.

 

 

HB0096- 55 -LRB098 05512 JDS 35547 b

1    (a) The State of Illinois shall make contributions by
2appropriations of amounts which, together with the other
3employer contributions from trust, federal, and other funds,
4employee contributions, income from investments, and other
5income of this System, will be sufficient to meet the cost of
6maintaining and administering the System on a 90% funded basis
7in accordance with actuarial recommendations.
8    The Board shall determine the amount of State contributions
9required for each fiscal year on the basis of the actuarial
10tables and other assumptions adopted by the Board and the
11recommendations of the actuary, using the formula in subsection
12(a-1).
13    (a-1) For State fiscal year 2014 and each fiscal year
14thereafter, the total annual contribution shall be an amount
15determined by the System to be sufficient to bring the total
16assets of the System up to 90% of the total actuarial
17liabilities of the System by the end of State fiscal year 2045.
18In making these determinations, the required total annual
19contribution shall be calculated each year as a level
20percentage of payroll over the years remaining to and including
21fiscal year 2045 and shall be determined under the projected
22unit credit actuarial cost method.
23    In State fiscal year 2014, employers shall contribute 50%
24of the total annual contribution for that year, and the State
25shall contribute 50% of the total annual contribution for that
26year. In State fiscal year 2015 and each fiscal year

 

 

HB0096- 56 -LRB098 05512 JDS 35547 b

1thereafter, employers shall contribute the total annual
2contribution or 101% of the previous year's employer
3contribution, whichever is less, and the State shall contribute
4the difference between the total annual contribution for that
5year and the required employer contribution for that year.
6    For State fiscal years 2012 and 2013 through 2045, the
7minimum contribution to the System to be made by the State for
8each fiscal year shall be an amount determined by the System to
9be sufficient to bring the total assets of the System up to 90%
10of the total actuarial liabilities of the System by the end of
11State fiscal year 2045. In making these determinations, the
12required State contribution shall be calculated each year as a
13level percentage of payroll over the years remaining to and
14including fiscal year 2045 and shall be determined under the
15projected unit credit actuarial cost method.
16    For State fiscal years 1996 through 2005, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19so that by State fiscal year 2011, the State is contributing at
20the rate required under this Section.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2006 is
23$166,641,900.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2007 is
26$252,064,100.

 

 

HB0096- 57 -LRB098 05512 JDS 35547 b

1    For each of State fiscal years 2008 through 2009, the State
2contribution to the System, as a percentage of the applicable
3employee payroll, shall be increased in equal annual increments
4from the required State contribution for State fiscal year
52007, so that by State fiscal year 2011, the State is
6contributing at the rate otherwise required under this Section.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2010 is
9$702,514,000 and shall be made from the State Pensions Fund and
10proceeds of bonds sold in fiscal year 2010 pursuant to Section
117.2 of the General Obligation Bond Act, less (i) the pro rata
12share of bond sale expenses determined by the System's share of
13total bond proceeds, (ii) any amounts received from the General
14Revenue Fund in fiscal year 2010, (iii) any reduction in bond
15proceeds due to the issuance of discounted bonds, if
16applicable.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2011 is
19the amount recertified by the System on or before April 1, 2011
20pursuant to Section 15-165 and shall be made from the State
21Pensions Fund and proceeds of bonds sold in fiscal year 2011
22pursuant to Section 7.2 of the General Obligation Bond Act,
23less (i) the pro rata share of bond sale expenses determined by
24the System's share of total bond proceeds, (ii) any amounts
25received from the General Revenue Fund in fiscal year 2011, and
26(iii) any reduction in bond proceeds due to the issuance of

 

 

HB0096- 58 -LRB098 05512 JDS 35547 b

1discounted bonds, if applicable.
2    Beginning in State fiscal year 2046, the minimum State
3contribution for each fiscal year shall be the amount needed to
4maintain the total assets of the System at 90% of the total
5actuarial liabilities of the System.
6    Amounts received by the System pursuant to Section 25 of
7the Budget Stabilization Act or Section 8.12 of the State
8Finance Act in any fiscal year do not reduce and do not
9constitute payment of any portion of the minimum State
10contribution required under this Article in that fiscal year.
11Such amounts shall not reduce, and shall not be included in the
12calculation of, the required State contributions under this
13Article in any future year until the System has reached a
14funding ratio of at least 90%. A reference in this Article to
15the "required State contribution" or any substantially similar
16term does not include or apply to any amounts payable to the
17System under Section 25 of the Budget Stabilization Act.
18    Notwithstanding any other provision of this Section, the
19required State contribution for State fiscal year 2005 and for
20fiscal year 2008 and each fiscal year thereafter, as calculated
21under this Section and certified under Section 15-165, shall
22not exceed an amount equal to (i) the amount of the required
23State contribution that would have been calculated under this
24Section for that fiscal year if the System had not received any
25payments under subsection (d) of Section 7.2 of the General
26Obligation Bond Act, minus (ii) the portion of the State's

 

 

HB0096- 59 -LRB098 05512 JDS 35547 b

1total debt service payments for that fiscal year on the bonds
2issued in fiscal year 2003 for the purposes of that Section
37.2, as determined and certified by the Comptroller, that is
4the same as the System's portion of the total moneys
5distributed under subsection (d) of Section 7.2 of the General
6Obligation Bond Act. In determining this maximum for State
7fiscal years 2008 through 2010, however, the amount referred to
8in item (i) shall be increased, as a percentage of the
9applicable employee payroll, in equal increments calculated
10from the sum of the required State contribution for State
11fiscal year 2007 plus the applicable portion of the State's
12total debt service payments for fiscal year 2007 on the bonds
13issued in fiscal year 2003 for the purposes of Section 7.2 of
14the General Obligation Bond Act, so that, by State fiscal year
152011, the State is contributing at the rate otherwise required
16under this Section.
17    (b) If an employee is paid from trust or federal funds, the
18employer shall pay to the Board contributions from those funds
19which are sufficient to cover the accruing normal costs on
20behalf of the employee. However, universities having employees
21who are compensated out of local auxiliary funds, income funds,
22or service enterprise funds are not required to pay such
23contributions on behalf of those employees. The local auxiliary
24funds, income funds, and service enterprise funds of
25universities shall not be considered trust funds for the
26purpose of this Article, but funds of alumni associations,

 

 

HB0096- 60 -LRB098 05512 JDS 35547 b

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

 

 

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

 

 

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1System, in addition to all other payments required under this
2Section and in accordance with guidelines established by the
3System, the present value of the increase in benefits resulting
4from the portion of the increase in earnings that is in excess
5of 6%. This present value shall be computed by the System on
6the basis of the actuarial assumptions and tables used in the
7most recent actuarial valuation of the System that is available
8at the time of the computation. The System may require the
9employer to provide any pertinent information or
10documentation.
11    Whenever it determines that a payment is or may be required
12under this subsection (g), the System shall calculate the
13amount of the payment and bill the employer for that amount.
14The bill shall specify the calculations used to determine the
15amount due. If the employer disputes the amount of the bill, it
16may, within 30 days after receipt of the bill, apply to the
17System in writing for a recalculation. The application must
18specify in detail the grounds of the dispute and, if the
19employer asserts that the calculation is subject to subsection
20(h) or (i) of this Section, must include an affidavit setting
21forth and attesting to all facts within the employer's
22knowledge that are pertinent to the applicability of subsection
23(h) or (i). Upon receiving a timely application for
24recalculation, the System shall review the application and, if
25appropriate, recalculate the amount due.
26    The employer contributions required under this subsection

 

 

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1(g) (f) may be paid in the form of a lump sum within 90 days
2after receipt of the bill. If the employer contributions are
3not paid within 90 days after receipt of the bill, then
4interest will be charged at a rate equal to the System's annual
5actuarially assumed rate of return on investment compounded
6annually from the 91st day after receipt of the bill. Payments
7must be concluded within 3 years after the employer's receipt
8of the bill.
9    (h) This subsection (h) applies only to payments made or
10salary increases given on or after June 1, 2005 but before July
111, 2011. The changes made by Public Act 94-1057 shall not
12require the System to refund any payments received before July
1331, 2006 (the effective date of Public Act 94-1057).
14    When assessing payment for any amount due under subsection
15(g), the System shall exclude earnings increases paid to
16participants under contracts or collective bargaining
17agreements entered into, amended, or renewed before June 1,
182005.
19    When assessing payment for any amount due under subsection
20(g), the System shall exclude earnings increases paid to a
21participant at a time when the participant is 10 or more years
22from retirement eligibility under Section 15-135.
23    When assessing payment for any amount due under subsection
24(g), the System shall exclude earnings increases resulting from
25overload work, including a contract for summer teaching, or
26overtime when the employer has certified to the System, and the

 

 

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

 

 

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

 

 

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

 

 

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1to the system's actuarially assumed rate of return.
2(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
47-13-12; revised 10-17-12.)
 
5    (40 ILCS 5/16-107)  (from Ch. 108 1/2, par. 16-107)
6    Sec. 16-107. Member.
7    "Member": any teacher included in the membership of this
8system during such membership.
9    Notwithstanding any other provision of this Code, on and
10after the effective date of this amendatory Act of the 98th
11General Assembly, a person may not become a member of the
12retirement system created under this Article.
13(Source: Laws 1963, p. 161.)
 
14    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
15    Sec. 16-158. Contributions by State and other employing
16units.
17    (a) The State shall make contributions to the System by
18means of appropriations from the Common School Fund and other
19State funds of amounts which, together with other employer
20contributions, employee contributions, investment income, and
21other income, will be sufficient to meet the cost of
22maintaining and administering the System on a 90% funded basis
23in accordance with actuarial recommendations.
24    The Board shall determine the amount of State contributions

 

 

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1required for each fiscal year on the basis of the actuarial
2tables and other assumptions adopted by the Board and the
3recommendations of the actuary, using the formula in subsection
4(b-3).
5    (a-1) Annually, on or before November 15 until November 15,
62011, the Board shall certify to the Governor the amount of the
7required State contribution for the coming fiscal year. The
8certification under this subsection (a-1) shall include a copy
9of the actuarial recommendations upon which it is based and
10shall specifically identify the System's projected State
11normal cost for that fiscal year.
12    On or before May 1, 2004, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2005, taking
15into account the amounts appropriated to and received by the
16System under subsection (d) of Section 7.2 of the General
17Obligation Bond Act.
18    On or before July 1, 2005, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2006, taking
21into account the changes in required State contributions made
22by this amendatory Act of the 94th General Assembly.
23    On or before April 1, 2011, the Board shall recalculate and
24recertify to the Governor the amount of the required State
25contribution to the System for State fiscal year 2011, applying
26the changes made by Public Act 96-889 to the System's assets

 

 

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1and liabilities as of June 30, 2009 as though Public Act 96-889
2was approved on that date.
3    (a-5) On or before November 1 of each year, beginning
4November 1, 2012, the Board shall submit to the State Actuary,
5the Governor, and the General Assembly a proposed certification
6of the amount of the required State contribution to the System
7for the next fiscal year, along with all of the actuarial
8assumptions, calculations, and data upon which that proposed
9certification is based. On or before January 1 of each year,
10beginning January 1, 2013, the State Actuary shall issue a
11preliminary report concerning the proposed certification and
12identifying, if necessary, recommended changes in actuarial
13assumptions that the Board must consider before finalizing its
14certification of the required State contributions. On or before
15January 15, 2013 and each January 15 thereafter, the Board
16shall certify to the Governor and the General Assembly the
17amount of the required State contribution for the next fiscal
18year. The Board's certification must note any deviations from
19the State Actuary's recommended changes, the reason or reasons
20for not following the State Actuary's recommended changes, and
21the fiscal impact of not following the State Actuary's
22recommended changes on the required State contribution.
23    (b) Through State fiscal year 1995, the State contributions
24shall be paid to the System in accordance with Section 18-7 of
25the School Code.
26    (b-1) Beginning in State fiscal year 1996, on the 15th day

 

 

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1of each month, or as soon thereafter as may be practicable, the
2Board shall submit vouchers for payment of State contributions
3to the System, in a total monthly amount of one-twelfth of the
4required annual State contribution certified under subsection
5(a-1). From the effective date of this amendatory Act of the
693rd General Assembly through June 30, 2004, the Board shall
7not submit vouchers for the remainder of fiscal year 2004 in
8excess of the fiscal year 2004 certified contribution amount
9determined under this Section after taking into consideration
10the transfer to the System under subsection (a) of Section
116z-61 of the State Finance Act. These vouchers shall be paid by
12the State Comptroller and Treasurer by warrants drawn on the
13funds appropriated to the System for that fiscal year.
14    If in any month the amount remaining unexpended from all
15other appropriations to the System for the applicable fiscal
16year (including the appropriations to the System under Section
178.12 of the State Finance Act and Section 1 of the State
18Pension Funds Continuing Appropriation Act) is less than the
19amount lawfully vouchered under this subsection, the
20difference shall be paid from the Common School Fund under the
21continuing appropriation authority provided in Section 1.1 of
22the State Pension Funds Continuing Appropriation Act.
23    (b-2) Allocations from the Common School Fund apportioned
24to school districts not coming under this System shall not be
25diminished or affected by the provisions of this Article.
26    (b-3) For State fiscal year 2014 and each fiscal year

 

 

HB0096- 71 -LRB098 05512 JDS 35547 b

1thereafter, the total annual contribution shall be an amount
2determined by the System to be sufficient to bring the total
3assets of the System up to 90% of the total actuarial
4liabilities of the System by the end of State fiscal year 2045.
5In making these determinations, the required total annual
6contribution shall be calculated each year as a level
7percentage of payroll over the years remaining to and including
8fiscal year 2045 and shall be determined under the projected
9unit credit actuarial cost method.
10    In State fiscal year 2014, employers shall contribute 50%
11of the total annual contribution for that year, and the State
12shall contribute 50% of the total annual contribution for that
13year. In State fiscal year 2015 and each fiscal year
14thereafter, employers shall contribute the total annual
15contribution or 101% of the previous year's employer
16contribution, whichever is less, and the State shall contribute
17the difference between the total annual contribution for that
18year and the required employer contribution for that year.
19    For State fiscal years 2012 and 2013 through 2045, the
20minimum contribution to the System to be made by the State for
21each fiscal year shall be an amount determined by the System to
22be sufficient to bring the total assets of the System up to 90%
23of the total actuarial liabilities of the System by the end of
24State fiscal year 2045. In making these determinations, the
25required State contribution shall be calculated each year as a
26level percentage of payroll over the years remaining to and

 

 

HB0096- 72 -LRB098 05512 JDS 35547 b

1including fiscal year 2045 and shall be determined under the
2projected unit credit actuarial cost method.
3    For State fiscal years 1996 through 2005, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6so that by State fiscal year 2011, the State is contributing at
7the rate required under this Section; except that in the
8following specified State fiscal years, the State contribution
9to the System shall not be less than the following indicated
10percentages of the applicable employee payroll, even if the
11indicated percentage will produce a State contribution in
12excess of the amount otherwise required under this subsection
13and subsection (a), and notwithstanding any contrary
14certification made under subsection (a-1) before the effective
15date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
16in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
172003; and 13.56% in FY 2004.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2006 is
20$534,627,700.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2007 is
23$738,014,500.
24    For each of State fiscal years 2008 through 2009, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

HB0096- 73 -LRB098 05512 JDS 35547 b

1from the required State contribution for State fiscal year
22007, so that by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2010 is
6$2,089,268,000 and shall be made from the proceeds of bonds
7sold in fiscal year 2010 pursuant to Section 7.2 of the General
8Obligation Bond Act, less (i) the pro rata share of bond sale
9expenses determined by the System's share of total bond
10proceeds, (ii) any amounts received from the Common School Fund
11in fiscal year 2010, and (iii) any reduction in bond proceeds
12due to the issuance of discounted bonds, if applicable.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2011 is
15the amount recertified by the System on or before April 1, 2011
16pursuant to subsection (a-1) of this Section and shall be made
17from the proceeds of bonds sold in fiscal year 2011 pursuant to
18Section 7.2 of the General Obligation Bond Act, less (i) the
19pro rata share of bond sale expenses determined by the System's
20share of total bond proceeds, (ii) any amounts received from
21the Common School Fund in fiscal year 2011, and (iii) any
22reduction in bond proceeds due to the issuance of discounted
23bonds, if applicable. This amount shall include, in addition to
24the amount certified by the System, an amount necessary to meet
25employer contributions required by the State as an employer
26under paragraph (e) of this Section, which may also be used by

 

 

HB0096- 74 -LRB098 05512 JDS 35547 b

1the System for contributions required by paragraph (a) of
2Section 16-127.
3    Beginning in State fiscal year 2046, the minimum State
4contribution for each fiscal year shall be the amount needed to
5maintain the total assets of the System at 90% of the total
6actuarial liabilities of the System.
7    Amounts received by the System pursuant to Section 25 of
8the Budget Stabilization Act or Section 8.12 of the State
9Finance Act in any fiscal year do not reduce and do not
10constitute payment of any portion of the minimum State
11contribution required under this Article in that fiscal year.
12Such amounts shall not reduce, and shall not be included in the
13calculation of, the required State contributions under this
14Article in any future year until the System has reached a
15funding ratio of at least 90%. A reference in this Article to
16the "required State contribution" or any substantially similar
17term does not include or apply to any amounts payable to the
18System under Section 25 of the Budget Stabilization Act.
19    Notwithstanding any other provision of this Section, the
20required State contribution for State fiscal year 2005 and for
21fiscal year 2008 and each fiscal year thereafter, as calculated
22under this Section and certified under subsection (a-1), shall
23not exceed an amount equal to (i) the amount of the required
24State contribution that would have been calculated under this
25Section for that fiscal year if the System had not received any
26payments under subsection (d) of Section 7.2 of the General

 

 

HB0096- 75 -LRB098 05512 JDS 35547 b

1Obligation Bond Act, minus (ii) the portion of the State's
2total debt service payments for that fiscal year on the bonds
3issued in fiscal year 2003 for the purposes of that Section
47.2, as determined and certified by the Comptroller, that is
5the same as the System's portion of the total moneys
6distributed under subsection (d) of Section 7.2 of the General
7Obligation Bond Act. In determining this maximum for State
8fiscal years 2008 through 2010, however, the amount referred to
9in item (i) shall be increased, as a percentage of the
10applicable employee payroll, in equal increments calculated
11from the sum of the required State contribution for State
12fiscal year 2007 plus the applicable portion of the State's
13total debt service payments for fiscal year 2007 on the bonds
14issued in fiscal year 2003 for the purposes of Section 7.2 of
15the General Obligation Bond Act, so that, by State fiscal year
162011, the State is contributing at the rate otherwise required
17under this Section.
18    (c) Payment of the required State contributions and of all
19pensions, retirement annuities, death benefits, refunds, and
20other benefits granted under or assumed by this System, and all
21expenses in connection with the administration and operation
22thereof, are obligations of the State.
23    If members are paid from special trust or federal funds
24which are administered by the employing unit, whether school
25district or other unit, the employing unit shall pay to the
26System from such funds the full accruing retirement costs based

 

 

HB0096- 76 -LRB098 05512 JDS 35547 b

1upon that service, as determined by the System. Employer
2contributions, based on salary paid to members from federal
3funds, may be forwarded by the distributing agency of the State
4of Illinois to the System prior to allocation, in an amount
5determined in accordance with guidelines established by such
6agency and the System.
7    (d) Effective July 1, 1986, any employer of a teacher as
8defined in paragraph (8) of Section 16-106 shall pay the
9employer's normal cost of benefits based upon the teacher's
10service, in addition to employee contributions, as determined
11by the System. Such employer contributions shall be forwarded
12monthly in accordance with guidelines established by the
13System.
14    However, with respect to benefits granted under Section
1516-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
16of Section 16-106, the employer's contribution shall be 12%
17(rather than 20%) of the member's highest annual salary rate
18for each year of creditable service granted, and the employer
19shall also pay the required employee contribution on behalf of
20the teacher. For the purposes of Sections 16-133.4 and
2116-133.5, a teacher as defined in paragraph (8) of Section
2216-106 who is serving in that capacity while on leave of
23absence from another employer under this Article shall not be
24considered an employee of the employer from which the teacher
25is on leave.
26    (e) Beginning July 1, 1998, every employer of a teacher

 

 

HB0096- 77 -LRB098 05512 JDS 35547 b

1shall pay to the System an employer contribution computed as
2follows:
3        (1) Beginning July 1, 1998 through June 30, 1999, the
4    employer contribution shall be equal to 0.3% of each
5    teacher's salary.
6        (2) Beginning July 1, 1999 and thereafter, the employer
7    contribution shall be equal to 0.58% of each teacher's
8    salary.
9The school district or other employing unit may pay these
10employer contributions out of any source of funding available
11for that purpose and shall forward the contributions to the
12System on the schedule established for the payment of member
13contributions.
14    These employer contributions are intended to offset a
15portion of the cost to the System of the increases in
16retirement benefits resulting from this amendatory Act of 1998.
17    Each employer of teachers is entitled to a credit against
18the contributions required under this subsection (e) with
19respect to salaries paid to teachers for the period January 1,
202002 through June 30, 2003, equal to the amount paid by that
21employer under subsection (a-5) of Section 6.6 of the State
22Employees Group Insurance Act of 1971 with respect to salaries
23paid to teachers for that period.
24    The additional 1% employee contribution required under
25Section 16-152 by this amendatory Act of 1998 is the
26responsibility of the teacher and not the teacher's employer,

 

 

HB0096- 78 -LRB098 05512 JDS 35547 b

1unless the employer agrees, through collective bargaining or
2otherwise, to make the contribution on behalf of the teacher.
3    If an employer is required by a contract in effect on May
41, 1998 between the employer and an employee organization to
5pay, on behalf of all its full-time employees covered by this
6Article, all mandatory employee contributions required under
7this Article, then the employer shall be excused from paying
8the employer contribution required under this subsection (e)
9for the balance of the term of that contract. The employer and
10the employee organization shall jointly certify to the System
11the existence of the contractual requirement, in such form as
12the System may prescribe. This exclusion shall cease upon the
13termination, extension, or renewal of the contract at any time
14after May 1, 1998.
15    (f) If the amount of a teacher's salary for any school year
16used to determine final average salary exceeds the member's
17annual full-time salary rate with the same employer for the
18previous school year by more than 6%, the teacher's employer
19shall pay to the System, in addition to all other payments
20required under this Section and in accordance with guidelines
21established by the System, the present value of the increase in
22benefits resulting from the portion of the increase in salary
23that is in excess of 6%. This present value shall be computed
24by the System on the basis of the actuarial assumptions and
25tables used in the most recent actuarial valuation of the
26System that is available at the time of the computation. If a

 

 

HB0096- 79 -LRB098 05512 JDS 35547 b

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

 

 

HB0096- 80 -LRB098 05512 JDS 35547 b

1the amount due.
2    The employer contributions required under this subsection
3(f) may be paid in the form of a lump sum within 90 days after
4receipt of the bill. If the employer contributions are not paid
5within 90 days after receipt of the bill, then interest will be
6charged at a rate equal to the System's annual actuarially
7assumed rate of return on investment compounded annually from
8the 91st day after receipt of the bill. Payments must be
9concluded within 3 years after the employer's receipt of the
10bill.
11    (g) This subsection (g) applies only to payments made or
12salary increases given on or after June 1, 2005 but before July
131, 2011. The changes made by Public Act 94-1057 shall not
14require the System to refund any payments received before July
1531, 2006 (the effective date of Public Act 94-1057).
16    When assessing payment for any amount due under subsection
17(f), the System shall exclude salary increases paid to teachers
18under contracts or collective bargaining agreements entered
19into, amended, or renewed before June 1, 2005.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude salary increases paid to a
22teacher at a time when the teacher is 10 or more years from
23retirement eligibility under Section 16-132 or 16-133.2.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude salary increases resulting from
26overload work, including summer school, when the school

 

 

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1district has certified to the System, and the System has
2approved the certification, that (i) the overload work is for
3the sole purpose of classroom instruction in excess of the
4standard number of classes for a full-time teacher in a school
5district during a school year and (ii) the salary increases are
6equal to or less than the rate of pay for classroom instruction
7computed on the teacher's current salary and work schedule.
8    When assessing payment for any amount due under subsection
9(f), the System shall exclude a salary increase resulting from
10a promotion (i) for which the employee is required to hold a
11certificate or supervisory endorsement issued by the State
12Teacher Certification Board that is a different certification
13or supervisory endorsement than is required for the teacher's
14previous position and (ii) to a position that has existed and
15been filled by a member for no less than one complete academic
16year and the salary increase from the promotion is an increase
17that results in an amount no greater than the lesser of the
18average salary paid for other similar positions in the district
19requiring the same certification or the amount stipulated in
20the collective bargaining agreement for a similar position
21requiring the same certification.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude any payment to the teacher from
24the State of Illinois or the State Board of Education over
25which the employer does not have discretion, notwithstanding
26that the payment is included in the computation of final

 

 

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

 

 

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1    (j) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5    As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12    (k) For purposes of determining the required State
13contribution to the system for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the system's actuarially assumed rate of return.
16(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1796-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
186-18-12; 97-813, eff. 7-13-12.)
 
19    (40 ILCS 5/18-110)  (from Ch. 108 1/2, par. 18-110)
20    Sec. 18-110. Participant. "Participant": Any judge
21participating in this system as specified in Sections 18-120
22and 18-121.
23    Notwithstanding any other provision of this Code, on and
24after the effective date of this amendatory Act of the 98th
25General Assembly, a person may not become a participant of the

 

 

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1retirement system created under this Article.
2(Source: P.A. 83-1440.)
 
3    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
4    Sec. 18-131. Financing; employer contributions.
5    (a) The State of Illinois shall make contributions to this
6System by appropriations of the amounts which, together with
7the contributions of participants, net earnings on
8investments, and other income, will meet the costs of
9maintaining and administering this System on a 90% funded basis
10in accordance with actuarial recommendations.
11    (b) The Board shall determine the amount of State
12contributions required for each fiscal year on the basis of the
13actuarial tables and other assumptions adopted by the Board and
14the prescribed rate of interest, using the formula in
15subsection (c).
16    (c) For State fiscal year 2014 and each fiscal year
17thereafter, the minimum contribution to the System to be made
18by the State for each fiscal year shall be 10.2% of the
19applicable employee payroll.
20    For State fiscal years 2012 and 2013 through 2045, the
21minimum contribution to the System to be made by the State for
22each fiscal year shall be an amount determined by the System to
23be sufficient to bring the total assets of the System up to 90%
24of the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the

 

 

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1required State contribution shall be calculated each year as a
2level percentage of payroll over the years remaining to and
3including fiscal year 2045 and shall be determined under the
4projected unit credit actuarial cost method.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2006 is
12$29,189,400.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$35,236,800.
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$78,832,000 and shall be made from the proceeds of bonds sold
25in fiscal year 2010 pursuant to Section 7.2 of the General
26Obligation Bond Act, less (i) the pro rata share of bond sale

 

 

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1expenses determined by the System's share of total bond
2proceeds, (ii) any amounts received from the General Revenue
3Fund in fiscal year 2010, and (iii) any reduction in bond
4proceeds due to the issuance of discounted bonds, if
5applicable.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2011 is
8the amount recertified by the System on or before April 1, 2011
9pursuant to Section 18-140 and shall be made from the proceeds
10of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
11the General Obligation Bond Act, less (i) the pro rata share of
12bond sale expenses determined by the System's share of total
13bond proceeds, (ii) any amounts received from the General
14Revenue Fund in fiscal year 2011, and (iii) any reduction in
15bond proceeds due to the issuance of discounted bonds, if
16applicable.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

HB0096- 87 -LRB098 05512 JDS 35547 b

1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under Section 18-140, shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

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1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (d) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (e) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
237-13-12.)
 
24    Section 15. The State Pension Funds Continuing
25Appropriation Act is amended by changing Sections 1.3 and 1.4

 

 

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1as follows:
 
2    (40 ILCS 15/1.3)
3    Sec. 1.3. Appropriations for the Teacher Health Insurance
4Security Fund. Beginning in State fiscal year 1996 and ending
5with the close of State fiscal year 2013, there is hereby
6appropriated, on a continuing annual basis, from the General
7Revenue Fund to the State Comptroller for deposit into the
8Teacher Health Insurance Security Fund, an amount equal to the
9amount certified by the Board of Trustees of the Teachers'
10Retirement System of Illinois under subsection (c) of Section
116.6 of the State Employees Group Insurance Act of 1971 as the
12estimated total amount of contributions to be paid under
13subsection (a) of that Section 6.6 in that fiscal year.
14    In addition to any other amounts that may be appropriated
15for this purpose, in State fiscal years 2005 through 2007,
16there is hereby appropriated, on a continuing annual basis,
17from the General Revenue Fund to the State Comptroller for
18deposit into the Teacher Health Insurance Security Fund, an
19amount equal to $13,000,000 in each fiscal year.
20    The moneys appropriated under this Section 1.3 shall be
21deposited into the Teacher Health Insurance Security Fund and
22used only for the purposes authorized in Section 6.5 of the
23State Employees Group Insurance Act of 1971.
24(Source: P.A. 93-679, eff. 6-30-04.)
 

 

 

HB0096- 90 -LRB098 05512 JDS 35547 b

1    (40 ILCS 15/1.4)
2    Sec. 1.4. Appropriations for the Community College Health
3Insurance Security Fund. Beginning in State fiscal year 1999
4and ending with the close of State fiscal year 2013, there is
5hereby appropriated, on a continuing annual basis, from the
6General Revenue Fund to the State Comptroller for deposit into
7the Community College Health Insurance Security Fund, an amount
8equal to the amount certified by the Board of Trustees of the
9State Universities Retirement System under subsection (c) of
10Section 6.10 of the State Employees Group Insurance Act of 1971
11as the estimated total amount of contributions to be paid under
12subsection (a) of that Section 6.10 in that fiscal year. The
13moneys appropriated under this Section 1.4 shall be deposited
14into the Community College Health Insurance Security Fund and
15used only for the purposes authorized in Section 6.9 of the
16State Employees Group Insurance Act of 1971.
17(Source: P.A. 90-497, eff. 8-18-97.)
 
18    Section 90. The State Mandates Act is amended by adding
19Section 8.37 as follows:
 
20    (30 ILCS 805/8.37 new)
21    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
22of this Act, no reimbursement by the State is required for the
23implementation of any mandate created by this amendatory Act of
24the 98th General Assembly.
 

 

 

HB0096- 91 -LRB098 05512 JDS 35547 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.

 

 

HB0096- 92 -LRB098 05512 JDS 35547 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 375/3from Ch. 127, par. 523
4    5 ILCS 375/6.6
5    5 ILCS 375/6.10
6    5 ILCS 375/6.10A new
7    5 ILCS 375/6.10B new
8    40 ILCS 5/1-167 new
9    40 ILCS 5/1-168 new
10    40 ILCS 5/2-105from Ch. 108 1/2, par. 2-105
11    40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
12    40 ILCS 5/14-103.06from Ch. 108 1/2, par. 14-103.06
13    40 ILCS 5/14-131
14    40 ILCS 5/15-134from Ch. 108 1/2, par. 15-134
15    40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
16    40 ILCS 5/16-107from Ch. 108 1/2, par. 16-107
17    40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
18    40 ILCS 5/18-110from Ch. 108 1/2, par. 18-110
19    40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
20    40 ILCS 15/1.3
21    40 ILCS 15/1.4
22    30 ILCS 805/8.37 new