Full Text of HB3076 97th General Assembly
HB3076sam003 97TH GENERAL ASSEMBLY | Sen. John J. Cullerton Filed: 5/30/2012
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| 1 | | AMENDMENT TO HOUSE BILL 3076
| 2 | | AMENDMENT NO. ______. Amend House Bill 3076, AS AMENDED, | 3 | | with reference to page and line numbers of Senate Amendment No. | 4 | | 2, as follows: | 5 | | on page 25, in line 10, immediately after "15-163," by | 6 | | inserting "15-165,"; and | 7 | | by replacing line 14 on page 81 through line 8 on page 86 with | 8 | | the following:
| 9 | | "(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
| 10 | | Sec. 7-109. Employee.
| 11 | | (1) "Employee" means any person who:
| 12 | | (a) 1. Receives earnings as payment for the performance | 13 | | of personal
services or official duties out of the | 14 | | general fund of a municipality,
or out of any special | 15 | | fund or funds controlled by a municipality, or by
an |
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| 1 | | instrumentality thereof, or a participating | 2 | | instrumentality, including,
in counties, the fees or | 3 | | earnings of any county fee office; and
| 4 | | 2. Under the usual common law rules applicable in | 5 | | determining the
employer-employee relationship, has | 6 | | the status of an employee with a
municipality, or any | 7 | | instrumentality thereof, or a participating
| 8 | | instrumentality, including aldermen, county | 9 | | supervisors and other
persons (excepting those | 10 | | employed as independent contractors) who are
paid | 11 | | compensation, fees, allowances or other emolument for | 12 | | official
duties, and, in counties, the several county | 13 | | fee offices.
| 14 | | (b) Serves as a township treasurer appointed under the | 15 | | School
Code, as heretofore or hereafter amended, and
who | 16 | | receives for such services regular compensation as | 17 | | distinguished
from per diem compensation, and any regular | 18 | | employee in the office of
any township treasurer whether or | 19 | | not his earnings are paid from the
income of the permanent | 20 | | township fund or from funds subject to
distribution to the | 21 | | several school districts and parts of school
districts as | 22 | | provided in the School Code, or from both such sources; or | 23 | | is the chief executive officer, chief educational officer, | 24 | | chief fiscal officer, or other employee of a Financial | 25 | | Oversight Panel established pursuant to Article 1H of the | 26 | | School Code, other than a superintendent or certified |
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| 1 | | school business official, except that such person shall not | 2 | | be treated as an employee under this Section if that person | 3 | | has negotiated with the Financial Oversight Panel, in | 4 | | conjunction with the school district, a contractual | 5 | | agreement for exclusion from this Section.
| 6 | | (c) Holds an elective office in a municipality, | 7 | | instrumentality
thereof or participating instrumentality.
| 8 | | (2) "Employee" does not include persons who:
| 9 | | (a) Are eligible for inclusion under any of the | 10 | | following laws:
| 11 | | 1. "An Act in relation to an Illinois State | 12 | | Teachers' Pension and
Retirement Fund", approved May | 13 | | 27, 1915, as amended;
| 14 | | 2. Articles 15 and 16 of this Code.
| 15 | | However, such persons shall be included as employees to | 16 | | the extent of
earnings that are not eligible for inclusion | 17 | | under the foregoing laws
for services not of an | 18 | | instructional nature of any kind.
| 19 | | However, any member of the armed forces who is employed | 20 | | as a teacher
of subjects in the Reserve Officers Training | 21 | | Corps of any school and who
is not certified under the law | 22 | | governing the certification of teachers
shall be included | 23 | | as an employee.
| 24 | | (b) Are designated by the governing body of a | 25 | | municipality in which a
pension fund is required by law to | 26 | | be established for policemen or
firemen, respectively, as |
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| 1 | | performing police or fire protection duties,
except that | 2 | | when such persons are the heads of the police or fire
| 3 | | department and are not eligible to be included within any | 4 | | such pension
fund, they shall be included within this | 5 | | Article; provided, that such
persons shall not be excluded | 6 | | to the extent of concurrent service and
earnings not | 7 | | designated as being for police or fire protection duties.
| 8 | | However, (i) any head of a police department who was a | 9 | | participant under this
Article immediately before October | 10 | | 1, 1977 and did not elect, under Section
3-109 of this Act, | 11 | | to participate in a police pension fund shall be an
| 12 | | "employee", and (ii) any chief of police who elects to | 13 | | participate in this
Fund under Section 3-109.1 of this | 14 | | Code, regardless of whether such person
continues to be | 15 | | employed as chief of police or is employed in some other
| 16 | | rank or capacity within the police department, shall be an | 17 | | employee under
this Article for so long as such person is | 18 | | employed to perform police
duties by a participating | 19 | | municipality and has not lawfully rescinded that
election. | 20 | | (c) After August 26, 2011 ( the effective date of Public | 21 | | Act 97-609) this amendatory Act of the 97th General | 22 | | Assembly , are contributors to or eligible to contribute to | 23 | | a Taft-Hartley pension plan established on or before June | 24 | | 1, 2011 and are employees of a theatre, arena, or | 25 | | convention center that is located in a municipality located | 26 | | in a county with a population greater than 5,000,000, and |
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| 1 | | to which the participating municipality is required to | 2 | | contribute as the person's employer based on earnings from | 3 | | the municipality. Nothing in this paragraph shall affect | 4 | | service credit or creditable service for any period of | 5 | | service prior to August 26, 2011 the effective date of this | 6 | | amendatory Act of the 97th General Assembly , and this | 7 | | paragraph shall not apply to individuals who are | 8 | | participating in the Fund prior to August 26, 2011 the | 9 | | effective date of this amendatory Act of the 97th General | 10 | | Assembly .
| 11 | | (d) Become an employee of any of the following | 12 | | participating instrumentalities on or after the effective | 13 | | date of this amendatory Act of the 97th General Assembly: | 14 | | the Illinois Municipal League; the Illinois Association of | 15 | | Park Districts; the Illinois Supervisors, County | 16 | | Commissioners and Superintendents of Highways Association; | 17 | | an association, or not-for-profit corporation, membership | 18 | | in which is authorized under Section 85-15 of the Township | 19 | | Code; the United Counties Council; or the Will County | 20 | | Governmental League. | 21 | | (3) All persons, including, without limitation, public | 22 | | defenders and
probation officers, who receive earnings from | 23 | | general or special funds
of a county for performance of | 24 | | personal services or official duties
within the territorial | 25 | | limits of the county, are employees of the county
(unless | 26 | | excluded by subsection (2) of this Section) notwithstanding |
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| 1 | | that
they may be appointed by and are subject to the direction | 2 | | of a person or
persons other than a county board or a county | 3 | | officer. It is hereby
established that an employer-employee | 4 | | relationship under the usual
common law rules exists between | 5 | | such employees and the county paying
their salaries by reason | 6 | | of the fact that the county boards fix their
rates of | 7 | | compensation, appropriate funds for payment of their earnings
| 8 | | and otherwise exercise control over them. This finding and this
| 9 | | amendatory Act shall apply to all such employees from the date | 10 | | of
appointment whether such date is prior to or after the | 11 | | effective date of
this amendatory Act and is intended to | 12 | | clarify existing law pertaining
to their status as | 13 | | participating employees in the Fund.
| 14 | | (Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11; | 15 | | revised 9-28-11.)"; and
| 16 | | on page 90, immediately below line 21, by inserting the | 17 | | following:
| 18 | | "(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
| 19 | | Sec. 15-106. Employer. "Employer": The University of | 20 | | Illinois, Southern
Illinois University, Chicago State | 21 | | University, Eastern Illinois University,
Governors State | 22 | | University, Illinois State University, Northeastern Illinois
| 23 | | University, Northern Illinois University, Western Illinois | 24 | | University, the
State Board of Higher Education, the Illinois |
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| 1 | | Mathematics and Science Academy,
the University Civil Service | 2 | | Merit Board, the Board of
Trustees of the State Universities | 3 | | Retirement System, the Illinois Community
College Board, | 4 | | community college
boards, any association of community college | 5 | | boards organized under Section
3-55 of the Public Community | 6 | | College Act, the Board of Examiners established
under the | 7 | | Illinois Public Accounting Act, and, only during the period for | 8 | | which
employer contributions required under Section 15-155 are | 9 | | paid, the following
organizations: the alumni associations, | 10 | | the foundations and the athletic
associations which are | 11 | | affiliated with the universities and colleges included
in this | 12 | | Section as employers. An individual that begins employment | 13 | | after the effective date of this amendatory Act of the 97th | 14 | | General Assembly with an entity not defined as an employer in | 15 | | this Section shall not be deemed an employee for the purposes | 16 | | of this Article with respect to that employment and shall not | 17 | | be eligible to participate in the System with respect to that | 18 | | employment; provided, however, that those individuals who are | 19 | | both employed and already participants in the System on the | 20 | | effective date of this amendatory Act of the 97th General | 21 | | Assembly shall be allowed to continue as participants in the | 22 | | System for the duration of that employment. | 23 | | Notwithstanding any provision of law to the contrary, an | 24 | | individual who begins employment with any of the following | 25 | | employers on or after the effective date of this amendatory Act | 26 | | of the 97th General Assembly shall not be deemed an employee |
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| 1 | | and shall not be eligible to participate in the System with | 2 | | respect to that employment: any association of community | 3 | | college boards organized under Section
3-55 of the Public | 4 | | Community College Act, the Association of Illinois | 5 | | Middle-Grade Schools, the Illinois Association of School | 6 | | Administrators, the Illinois Association for Supervision and | 7 | | Curriculum Development, the Illinois Principals Association, | 8 | | the Illinois Association of School Business Officials, or the | 9 | | Illinois Special Olympics; provided, however, that those | 10 | | individuals who are both employed and already participants in | 11 | | the System on the effective date of this amendatory Act of the | 12 | | 97th General Assembly shall be allowed to continue as | 13 | | participants in the System for the duration of that employment. | 14 | | A department as defined in Section 14-103.04 is
an employer | 15 | | for any person appointed by the Governor under the Civil
| 16 | | Administrative Code of Illinois who is a participating employee | 17 | | as defined in
Section 15-109. The Department of Central | 18 | | Management Services is an employer with respect to persons | 19 | | employed by the State Board of Higher Education in positions | 20 | | with the Illinois Century Network as of June 30, 2004 who | 21 | | remain continuously employed after that date by the Department | 22 | | of Central Management Services in positions with the Illinois | 23 | | Century Network, the Bureau of Communication and Computer | 24 | | Services, or, if applicable, any successor bureau.
| 25 | | The cities of Champaign and Urbana shall be considered
| 26 | | employers, but only during the period for which contributions |
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| 1 | | are required to
be made under subsection (b-1) of Section | 2 | | 15-155 and only with respect to
individuals described in | 3 | | subsection (h) of Section 15-107.
| 4 | | (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See | 5 | | Sec. 999 .)"; and
| 6 | | on page 132, in line 26, by replacing " arising " with | 7 | | " associated with the total cost of benefits accrued "; and | 8 | | on page 165, immediately below line 7, by inserting the | 9 | | following:
| 10 | | "(40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 11 | | Sec. 15-165. To certify amounts and submit vouchers.
| 12 | | (a) The Board shall certify to the Governor on or before | 13 | | November 15 of each
year until November 15, 2011 the | 14 | | appropriation required from State funds for the purposes of | 15 | | this
System for the following fiscal year. The certification | 16 | | under this subsection (a) shall include a copy
of the actuarial | 17 | | recommendations upon which it is based and shall specifically | 18 | | identify the System's projected State normal cost for that | 19 | | fiscal year and the projected State cost for the self-managed | 20 | | plan for that fiscal year .
| 21 | | On or before May 1, 2004, the Board shall recalculate and | 22 | | recertify to
the Governor the amount of the required State | 23 | | contribution to the System for
State fiscal year 2005, taking |
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| 1 | | into account the amounts appropriated to and
received by the | 2 | | System under subsection (d) of Section 7.2 of the General
| 3 | | Obligation Bond Act.
| 4 | | On or before July 1, 2005, the Board shall recalculate and | 5 | | recertify
to the Governor the amount of the required State
| 6 | | contribution to the System for State fiscal year 2006, taking | 7 | | into account the changes in required State contributions made | 8 | | by this amendatory Act of the 94th General Assembly.
| 9 | | On or before April 1, 2011, the Board shall recalculate and | 10 | | recertify to the Governor the amount of the required State | 11 | | contribution to the System for State fiscal year 2011, applying | 12 | | the changes made by Public Act 96-889 to the System's assets | 13 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 14 | | was approved on that date. | 15 | | (a-5) On or before November 1 of each year, beginning | 16 | | November 1, 2012, the Board shall submit to the State Actuary, | 17 | | the Governor, and the General Assembly a proposed certification | 18 | | of the amount of the required State contribution to the System | 19 | | for the next fiscal year, along with all of the actuarial | 20 | | assumptions, calculations, and data upon which that proposed | 21 | | certification is based. On or before January 1 of each year, | 22 | | beginning January 1, 2013, the State Actuary shall issue a | 23 | | preliminary report concerning the proposed certification and | 24 | | identifying, if necessary, recommended changes in actuarial | 25 | | assumptions that the Board must consider before finalizing its | 26 | | certification of the required State contributions. On or before |
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| 1 | | January 15, 2013 and each January 15 thereafter, the Board | 2 | | shall certify to the Governor and the General Assembly the | 3 | | amount of the required State contribution for the next fiscal | 4 | | year. The Board's certification must note, in a written | 5 | | response to the State Actuary, any deviations from the State | 6 | | Actuary's recommended changes, the reason or reasons for not | 7 | | following the State Actuary's recommended changes, and the | 8 | | fiscal impact of not following the State Actuary's recommended | 9 | | changes on the required State contribution. | 10 | | (b) The Board shall certify to the State Comptroller or | 11 | | employer, as the
case may be, from time to time, by its | 12 | | president and secretary, with its seal
attached, the amounts | 13 | | payable to the System from the various funds.
| 14 | | (c) Beginning in State fiscal year 1996, on or as soon as | 15 | | possible after the
15th day of each month the Board shall | 16 | | submit vouchers for payment of State
contributions to the | 17 | | System, in a total monthly amount of one-twelfth of the
| 18 | | required annual State contribution certified under subsection | 19 | | (a).
From the effective date of this amendatory Act
of the 93rd | 20 | | General Assembly through June 30, 2004, the Board shall not
| 21 | | submit vouchers for the remainder of fiscal year 2004 in excess | 22 | | of the
fiscal year 2004 certified contribution amount | 23 | | determined
under this Section after taking into consideration | 24 | | the transfer to the
System under subsection (b) of Section | 25 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 26 | | the State Comptroller and Treasurer by warrants drawn
on the |
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| 1 | | funds appropriated to the System for that fiscal year.
| 2 | | If in any month the amount remaining unexpended from all | 3 | | other
appropriations to the System for the applicable fiscal | 4 | | year (including the
appropriations to the System under Section | 5 | | 8.12 of the State Finance Act and
Section 1 of the State | 6 | | Pension Funds Continuing Appropriation Act) is less than
the | 7 | | amount lawfully vouchered under this Section, the difference | 8 | | shall be paid
from the General Revenue Fund under the | 9 | | continuing appropriation authority
provided in Section 1.1 of | 10 | | the State Pension Funds Continuing Appropriation
Act.
| 11 | | (d) So long as the payments received are the full amount | 12 | | lawfully
vouchered under this Section, payments received by the | 13 | | System under this
Section shall be applied first toward the | 14 | | employer contribution to the
self-managed plan established | 15 | | under Section 15-158.2. Payments shall be
applied second toward | 16 | | the employer's portion of the normal costs of the System,
as | 17 | | defined in subsection (f) of Section 15-155. The balance shall | 18 | | be applied
toward the unfunded actuarial liabilities of the | 19 | | System.
| 20 | | (e) In the event that the System does not receive, as a | 21 | | result of
legislative enactment or otherwise, payments | 22 | | sufficient to
fully fund the employer contribution to the | 23 | | self-managed plan
established under Section 15-158.2 and to | 24 | | fully fund that portion of the
employer's portion of the normal | 25 | | costs of the System, as calculated in
accordance with Section | 26 | | 15-155(a-1), then any payments received shall be
applied |
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| 1 | | proportionately to the optional retirement program established | 2 | | under
Section 15-158.2 and to the employer's portion of the | 3 | | normal costs of the
System, as calculated in accordance with | 4 | | Section 15-155(a-1).
| 5 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)"; | 6 | | and
| 7 | | by replacing line 25 on page 180 through line 20 on page 201 | 8 | | with the following:
| 9 | | "(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 10 | | Sec. 16-158. Contributions by State and other employing | 11 | | units.
| 12 | | (a) The State shall make contributions to the System by | 13 | | means of
appropriations from the Common School Fund and other | 14 | | State funds of amounts
which, together with other employer | 15 | | contributions, employee contributions,
investment income, and | 16 | | other income, will be sufficient to meet the cost of
| 17 | | maintaining and administering the System on a 90% funded basis | 18 | | in accordance
with actuarial recommendations.
| 19 | | The Board shall determine the amount of State contributions | 20 | | required for
each fiscal year on the basis of the actuarial | 21 | | tables and other assumptions
adopted by the Board and the | 22 | | recommendations of the actuary, using the formula
in subsection | 23 | | (b-3).
| 24 | | (a-1) Annually, on or before November 15 until November 15, |
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| 1 | | 2011 , the Board shall certify to the
Governor the amount of the | 2 | | required State contribution for the coming fiscal
year. The | 3 | | certification under this subsection (a-1) shall include a copy | 4 | | of the actuarial recommendations
upon which it is based.
| 5 | | On or before May 1, 2004, the Board shall recalculate and | 6 | | recertify to
the Governor the amount of the required State | 7 | | contribution to the System for
State fiscal year 2005, taking | 8 | | into account the amounts appropriated to and
received by the | 9 | | System under subsection (d) of Section 7.2 of the General
| 10 | | Obligation Bond Act.
| 11 | | On or before July 1, 2005 April 1, 2011 , the Board shall | 12 | | recalculate and recertify
to the Governor the amount of the | 13 | | required State
contribution to the System for State fiscal year | 14 | | 2006, taking into account the changes in required State | 15 | | contributions made by this amendatory Act of the 94th General | 16 | | Assembly.
| 17 | | On or before April 1, 2011 June 15, 2010 , the Board shall | 18 | | recalculate and recertify to the Governor the amount of the | 19 | | required State contribution to the System for State fiscal year | 20 | | 2011, applying the changes made by Public Act 96-889 to the | 21 | | System's assets and liabilities as of June 30, 2009 as though | 22 | | Public Act 96-889 was approved on that date. | 23 | | (a-5) On or before November 1 of each year, beginning
| 24 | | November 1, 2012, the Board shall submit to the State Actuary,
| 25 | | the Governor, and the General Assembly a proposed certification
| 26 | | of the amount of the required State contribution to the System
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| 1 | | for the next fiscal year, along with all of the actuarial
| 2 | | assumptions, calculations, and data upon which that proposed
| 3 | | certification is based. On or before January 1 of each year,
| 4 | | beginning January 1, 2013, the State Actuary shall issue a
| 5 | | preliminary report concerning the proposed certification and
| 6 | | identifying, if necessary, recommended changes in actuarial
| 7 | | assumptions that the Board must consider before finalizing its
| 8 | | certification of the required State contributions. On or before
| 9 | | January 15, 2013 and each January 15 thereafter, the Board
| 10 | | shall certify to the Governor and the General Assembly the
| 11 | | amount of the required State contribution for the next fiscal
| 12 | | year. The Board's certification must note any deviations from
| 13 | | the State Actuary's recommended changes, the reason or reasons
| 14 | | for not following the State Actuary's recommended changes, and
| 15 | | the fiscal impact of not following the State Actuary's
| 16 | | recommended changes on the required State contribution. | 17 | | (b) Through State fiscal year 1995, the State contributions | 18 | | shall be
paid to the System in accordance with Section 18-7 of | 19 | | the School Code.
| 20 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 21 | | of each month,
or as soon thereafter as may be practicable, the | 22 | | Board shall submit vouchers
for payment of State contributions | 23 | | to the System, in a total monthly amount of
one-twelfth of the | 24 | | required annual State contribution certified under
subsection | 25 | | (a-1).
From the
effective date of this amendatory Act of the | 26 | | 93rd General Assembly
through June 30, 2004, the Board shall |
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| 1 | | not submit vouchers for the
remainder of fiscal year 2004 in | 2 | | excess of the fiscal year 2004
certified contribution amount | 3 | | determined under this Section
after taking into consideration | 4 | | the transfer to the System
under subsection (a) of Section | 5 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 6 | | the State Comptroller and
Treasurer by warrants drawn on the | 7 | | funds appropriated to the System for that
fiscal year.
| 8 | | If in any month the amount remaining unexpended from all | 9 | | other appropriations
to the System for the applicable fiscal | 10 | | year (including the appropriations to
the System under Section | 11 | | 8.12 of the State Finance Act and Section 1 of the
State | 12 | | Pension Funds Continuing Appropriation Act) is less than the | 13 | | amount
lawfully vouchered under this subsection, the | 14 | | difference shall be paid from the
Common School Fund under the | 15 | | continuing appropriation authority provided in
Section 1.1 of | 16 | | the State Pension Funds Continuing Appropriation Act.
| 17 | | (b-2) Allocations from the Common School Fund apportioned | 18 | | to school
districts not coming under this System shall not be | 19 | | diminished or affected by
the provisions of this Article.
| 20 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 21 | | contribution
to the System to be made by the State for each | 22 | | fiscal year shall be an amount
determined by the System to be | 23 | | sufficient to bring the total assets of the
System up to 90% of | 24 | | the total actuarial liabilities of the System by the end of
| 25 | | State fiscal year 2045. In making these determinations, the | 26 | | required State
contribution shall be calculated each year as a |
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| 1 | | level percentage of payroll
over the years remaining to and | 2 | | including fiscal year 2045 and shall be
determined under the | 3 | | projected unit credit actuarial cost method.
| 4 | | For State fiscal years 1996 through 2005, the State | 5 | | contribution to the
System, as a percentage of the applicable | 6 | | employee payroll, shall be increased
in equal annual increments | 7 | | so that by State fiscal year 2011, the State is
contributing at | 8 | | the rate required under this Section; except that in the
| 9 | | following specified State fiscal years, the State contribution | 10 | | to the System
shall not be less than the following indicated | 11 | | percentages of the applicable
employee payroll, even if the | 12 | | indicated percentage will produce a State
contribution in | 13 | | excess of the amount otherwise required under this subsection
| 14 | | and subsection (a), and notwithstanding any contrary | 15 | | certification made under
subsection (a-1) before the effective | 16 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 17 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 18 | | 2003; and
13.56% in FY 2004.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State
contribution for State fiscal year 2006 is | 21 | | $534,627,700.
| 22 | | Notwithstanding any other provision of this Article, the | 23 | | total required State
contribution for State fiscal year 2007 is | 24 | | $738,014,500.
| 25 | | For each of State fiscal years 2008 through 2009, the State | 26 | | contribution to
the System, as a percentage of the applicable |
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| 1 | | employee payroll, shall be
increased in equal annual increments | 2 | | from the required State contribution for State fiscal year | 3 | | 2007, so that by State fiscal year 2011, the
State is | 4 | | contributing at the rate otherwise required under this Section.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State contribution for State fiscal year 2010 is | 7 | | $2,089,268,000 and shall be made from the proceeds of bonds | 8 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 9 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 10 | | expenses determined by the System's share of total bond | 11 | | proceeds, (ii) any amounts received from the Common School Fund | 12 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 13 | | due to the issuance of discounted bonds, if applicable. | 14 | | Notwithstanding any other provision of this Article, the
| 15 | | total required State contribution for State fiscal year 2011 is
| 16 | | the amount recertified by the System on or before April 1, 2011 | 17 | | pursuant to subsection (a-1) of this Section and shall be made | 18 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 19 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 20 | | pro rata share of bond sale
expenses determined by the System's | 21 | | share of total bond
proceeds, (ii) any amounts received from | 22 | | the Common School Fund
in fiscal year 2011, and (iii) any | 23 | | reduction in bond proceeds
due to the issuance of discounted | 24 | | bonds, if applicable. This amount shall include, in addition to | 25 | | the amount certified by the System, an amount necessary to meet | 26 | | employer contributions required by the State as an employer |
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| 1 | | under paragraph (e) of this Section, which may also be used by | 2 | | the System for contributions required by paragraph (a) of | 3 | | Section 16-127. | 4 | | Beginning in State fiscal year 2046, the minimum State | 5 | | contribution for
each fiscal year shall be the amount needed to | 6 | | maintain the total assets of
the System at 90% of the total | 7 | | actuarial liabilities of the System.
| 8 | | Amounts received by the System pursuant to Section 25 of | 9 | | the Budget Stabilization Act or Section 8.12 of the State | 10 | | Finance Act in any fiscal year do not reduce and do not | 11 | | constitute payment of any portion of the minimum State | 12 | | contribution required under this Article in that fiscal year. | 13 | | Such amounts shall not reduce, and shall not be included in the | 14 | | calculation of, the required State contributions under this | 15 | | Article in any future year until the System has reached a | 16 | | funding ratio of at least 90%. A reference in this Article to | 17 | | the "required State contribution" or any substantially similar | 18 | | term does not include or apply to any amounts payable to the | 19 | | System under Section 25 of the Budget Stabilization Act. | 20 | | Notwithstanding any other provision of this Section, the | 21 | | required State
contribution for State fiscal year 2005 and for | 22 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 23 | | under this Section and
certified under subsection (a-1), shall | 24 | | not exceed an amount equal to (i) the
amount of the required | 25 | | State contribution that would have been calculated under
this | 26 | | Section for that fiscal year if the System had not received any |
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| 1 | | payments
under subsection (d) of Section 7.2 of the General | 2 | | Obligation Bond Act, minus
(ii) the portion of the State's | 3 | | total debt service payments for that fiscal
year on the bonds | 4 | | issued in fiscal year 2003 for the purposes of that Section | 5 | | 7.2, as determined
and certified by the Comptroller, that is | 6 | | the same as the System's portion of
the total moneys | 7 | | distributed under subsection (d) of Section 7.2 of the General
| 8 | | Obligation Bond Act. In determining this maximum for State | 9 | | fiscal years 2008 through 2010, however, the amount referred to | 10 | | in item (i) shall be increased, as a percentage of the | 11 | | applicable employee payroll, in equal increments calculated | 12 | | from the sum of the required State contribution for State | 13 | | fiscal year 2007 plus the applicable portion of the State's | 14 | | total debt service payments for fiscal year 2007 on the bonds | 15 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 16 | | the General
Obligation Bond Act, so that, by State fiscal year | 17 | | 2011, the
State is contributing at the rate otherwise required | 18 | | under this Section.
| 19 | | (c) Payment of the required State contributions and of all | 20 | | pensions,
retirement annuities, death benefits, refunds, and | 21 | | other benefits granted
under or assumed by this System, and all | 22 | | expenses in connection with the
administration and operation | 23 | | thereof, are obligations of the State.
| 24 | | If members are paid from special trust or federal funds | 25 | | which are
administered by the employing unit, whether school | 26 | | district or other
unit, the employing unit shall pay to the |
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| 1 | | System from such
funds the full accruing retirement costs based | 2 | | upon that
service, as determined by the System. Employer | 3 | | contributions, based on
salary paid to members from federal | 4 | | funds, may be forwarded by the distributing
agency of the State | 5 | | of Illinois to the System prior to allocation, in an
amount | 6 | | determined in accordance with guidelines established by such
| 7 | | agency and the System.
| 8 | | (d) Effective July 1, 1986, any employer of a teacher as | 9 | | defined in
paragraph (8) of Section 16-106 shall pay the | 10 | | employer's normal cost
of benefits based upon the teacher's | 11 | | service, in addition to
employee contributions, as determined | 12 | | by the System. Such employer
contributions shall be forwarded | 13 | | monthly in accordance with guidelines
established by the | 14 | | System.
| 15 | | However, with respect to benefits granted under Section | 16 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 17 | | of Section 16-106, the
employer's contribution shall be 12% | 18 | | (rather than 20%) of the member's
highest annual salary rate | 19 | | for each year of creditable service granted, and
the employer | 20 | | shall also pay the required employee contribution on behalf of
| 21 | | the teacher. For the purposes of Sections 16-133.4 and | 22 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 23 | | 16-106 who is serving in that capacity
while on leave of | 24 | | absence from another employer under this Article shall not
be | 25 | | considered an employee of the employer from which the teacher | 26 | | is on leave.
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| 1 | | (e) Beginning July 1, 1998, every employer of a teacher
| 2 | | shall pay to the System an employer contribution computed as | 3 | | follows:
| 4 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 5 | | employer
contribution shall be equal to 0.3% of each | 6 | | teacher's salary.
| 7 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 8 | | contribution shall be equal to 0.58% of each teacher's | 9 | | salary.
| 10 | | The school district or other employing unit may pay these | 11 | | employer
contributions out of any source of funding available | 12 | | for that purpose and
shall forward the contributions to the | 13 | | System on the schedule established
for the payment of member | 14 | | contributions.
| 15 | | These employer contributions are intended to offset a | 16 | | portion of the cost
to the System of the increases in | 17 | | retirement benefits resulting from this
amendatory Act of 1998.
| 18 | | Each employer of teachers is entitled to a credit against | 19 | | the contributions
required under this subsection (e) with | 20 | | respect to salaries paid to teachers
for the period January 1, | 21 | | 2002 through June 30, 2003, equal to the amount paid
by that | 22 | | employer under subsection (a-5) of Section 6.6 of the State | 23 | | Employees
Group Insurance Act of 1971 with respect to salaries | 24 | | paid to teachers for that
period.
| 25 | | The additional 1% employee contribution required under | 26 | | Section 16-152 by
this amendatory Act of 1998 is the |
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| 1 | | responsibility of the teacher and not the
teacher's employer, | 2 | | unless the employer agrees, through collective bargaining
or | 3 | | otherwise, to make the contribution on behalf of the teacher.
| 4 | | If an employer is required by a contract in effect on May | 5 | | 1, 1998 between the
employer and an employee organization to | 6 | | pay, on behalf of all its full-time
employees
covered by this | 7 | | Article, all mandatory employee contributions required under
| 8 | | this Article, then the employer shall be excused from paying | 9 | | the employer
contribution required under this subsection (e) | 10 | | for the balance of the term
of that contract. The employer and | 11 | | the employee organization shall jointly
certify to the System | 12 | | the existence of the contractual requirement, in such
form as | 13 | | the System may prescribe. This exclusion shall cease upon the
| 14 | | termination, extension, or renewal of the contract at any time | 15 | | after May 1,
1998.
| 16 | | (f) If the amount of a teacher's salary for any school year | 17 | | used to determine final average salary exceeds the member's | 18 | | annual full-time salary rate with the same employer for the | 19 | | previous school year by more than 6%, the teacher's employer | 20 | | shall pay to the System, in addition to all other payments | 21 | | required under this Section and in accordance with guidelines | 22 | | established by the System, the present value of the increase in | 23 | | benefits resulting from the portion of the increase in salary | 24 | | that is in excess of 6%. This present value shall be computed | 25 | | by the System on the basis of the actuarial assumptions and | 26 | | tables used in the most recent actuarial valuation of the |
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| 1 | | System that is available at the time of the computation. If a | 2 | | teacher's salary for the 2005-2006 school year is used to | 3 | | determine final average salary under this subsection (f), then | 4 | | the changes made to this subsection (f) by Public Act 94-1057 | 5 | | shall apply in calculating whether the increase in his or her | 6 | | salary is in excess of 6%. For the purposes of this Section, | 7 | | change in employment under Section 10-21.12 of the School Code | 8 | | on or after June 1, 2005 shall constitute a change in employer. | 9 | | The System may require the employer to provide any pertinent | 10 | | information or documentation.
The changes made to this | 11 | | subsection (f) by this amendatory Act of the 94th General | 12 | | Assembly apply without regard to whether the teacher was in | 13 | | service on or after its effective date.
| 14 | | Whenever it determines that a payment is or may be required | 15 | | under this subsection, the System shall calculate the amount of | 16 | | the payment and bill the employer for that amount. The bill | 17 | | shall specify the calculations used to determine the amount | 18 | | due. If the employer disputes the amount of the bill, it may, | 19 | | within 30 days after receipt of the bill, apply to the System | 20 | | in writing for a recalculation. The application must specify in | 21 | | detail the grounds of the dispute and, if the employer asserts | 22 | | that the calculation is subject to subsection (g) or (h) of | 23 | | this Section, must include an affidavit setting forth and | 24 | | attesting to all facts within the employer's knowledge that are | 25 | | pertinent to the applicability of that subsection. Upon | 26 | | receiving a timely application for recalculation, the System |
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| 1 | | shall review the application and, if appropriate, recalculate | 2 | | the amount due.
| 3 | | The employer contributions required under this subsection | 4 | | (f) may be paid in the form of a lump sum within 90 days after | 5 | | receipt of the bill. If the employer contributions are not paid | 6 | | within 90 days after receipt of the bill, then interest will be | 7 | | charged at a rate equal to the System's annual actuarially | 8 | | assumed rate of return on investment compounded annually from | 9 | | the 91st day after receipt of the bill. Payments must be | 10 | | concluded within 3 years after the employer's receipt of the | 11 | | bill.
| 12 | | (g) This subsection (g) applies only to payments made or | 13 | | salary increases given on or after June 1, 2005 but before July | 14 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 15 | | require the System to refund any payments received before
July | 16 | | 31, 2006 (the effective date of Public Act 94-1057). | 17 | | When assessing payment for any amount due under subsection | 18 | | (f), the System shall exclude salary increases paid to teachers | 19 | | under contracts or collective bargaining agreements entered | 20 | | into, amended, or renewed before June 1, 2005.
| 21 | | When assessing payment for any amount due under subsection | 22 | | (f), the System shall exclude salary increases paid to a | 23 | | teacher at a time when the teacher is 10 or more years from | 24 | | retirement eligibility under Section 16-132 or 16-133.2.
| 25 | | When assessing payment for any amount due under subsection | 26 | | (f), the System shall exclude salary increases resulting from |
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| 1 | | overload work, including summer school, when the school | 2 | | district has certified to the System, and the System has | 3 | | approved the certification, that (i) the overload work is for | 4 | | the sole purpose of classroom instruction in excess of the | 5 | | standard number of classes for a full-time teacher in a school | 6 | | district during a school year and (ii) the salary increases are | 7 | | equal to or less than the rate of pay for classroom instruction | 8 | | computed on the teacher's current salary and work schedule.
| 9 | | When assessing payment for any amount due under subsection | 10 | | (f), the System shall exclude a salary increase resulting from | 11 | | a promotion (i) for which the employee is required to hold a | 12 | | certificate or supervisory endorsement issued by the State | 13 | | Teacher Certification Board that is a different certification | 14 | | or supervisory endorsement than is required for the teacher's | 15 | | previous position and (ii) to a position that has existed and | 16 | | been filled by a member for no less than one complete academic | 17 | | year and the salary increase from the promotion is an increase | 18 | | that results in an amount no greater than the lesser of the | 19 | | average salary paid for other similar positions in the district | 20 | | requiring the same certification or the amount stipulated in | 21 | | the collective bargaining agreement for a similar position | 22 | | requiring the same certification.
| 23 | | When assessing payment for any amount due under subsection | 24 | | (f), the System shall exclude any payment to the teacher from | 25 | | the State of Illinois or the State Board of Education over | 26 | | which the employer does not have discretion, notwithstanding |
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| 1 | | that the payment is included in the computation of final | 2 | | average salary.
| 3 | | (h) When assessing payment for any amount due under | 4 | | subsection (f), the System shall exclude any salary increase | 5 | | described in subsection (g) of this Section given on or after | 6 | | July 1, 2011 but before July 1, 2014 under a contract or | 7 | | collective bargaining agreement entered into, amended, or | 8 | | renewed on or after June 1, 2005 but before July 1, 2011. | 9 | | Notwithstanding any other provision of this Section, any | 10 | | payments made or salary increases given after June 30, 2014 | 11 | | shall be used in assessing payment for any amount due under | 12 | | subsection (f) of this Section.
| 13 | | (i) The System shall prepare a report and file copies of | 14 | | the report with the Governor and the General Assembly by | 15 | | January 1, 2007 that contains all of the following information: | 16 | | (1) The number of recalculations required by the | 17 | | changes made to this Section by Public Act 94-1057 for each | 18 | | employer. | 19 | | (2) The dollar amount by which each employer's | 20 | | contribution to the System was changed due to | 21 | | recalculations required by Public Act 94-1057. | 22 | | (3) The total amount the System received from each | 23 | | employer as a result of the changes made to this Section by | 24 | | Public Act 94-4. | 25 | | (4) The increase in the required State contribution | 26 | | resulting from the changes made to this Section by Public |
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| 1 | | Act 94-1057.
| 2 | | (j) For purposes of determining the required State | 3 | | contribution to the System, the value of the System's assets | 4 | | shall be equal to the actuarial value of the System's assets, | 5 | | which shall be calculated as follows: | 6 | | As of June 30, 2008, the actuarial value of the System's | 7 | | assets shall be equal to the market value of the assets as of | 8 | | that date. In determining the actuarial value of the System's | 9 | | assets for fiscal years after June 30, 2008, any actuarial | 10 | | gains or losses from investment return incurred in a fiscal | 11 | | year shall be recognized in equal annual amounts over the | 12 | | 5-year period following that fiscal year. | 13 | | (k) For purposes of determining the required State | 14 | | contribution to the system for a particular year, the actuarial | 15 | | value of assets shall be assumed to earn a rate of return equal | 16 | | to the system's actuarially assumed rate of return. | 17 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 18 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 19 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)"; and
| 20 | | on page 213, in line 11, by changing "equitable" to "equitable , | 21 | | but excluding the changes, the impact of changes, and the | 22 | | implementation of the changes set forth in this amendatory Act | 23 | | of the 97th General Assembly ; and | 24 | | on page 223, in line 16, by replacing " 35 through 100, " with |
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| 1 | | " 40, 95, 100, "; and
| 2 | | on page 224, by replacing lines 1 and 2, with the following: | 3 | | "Sections 10, 35, and 45 through 90 of this Act, as well as | 4 | | the other provisions of Section 30 of this Act, are mutually | 5 | | dependent and inseverable. If any of".
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