Full Text of HB3076 97th General Assembly
HB3076sam004 97TH GENERAL ASSEMBLY | Sen. Christine Radogno 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 House Amendment No. | 4 | | 2, as follows:
| 5 | | on page 25, line 13, by changing "15-155.1, 15-155.2," to "and | 6 | | 15-155.1,"; and | 7 | | on page 25, line 14, by deleting "and"; and | 8 | | by replacing page 125, line 21, through page 142, line 17, with | 9 | | the following:
| 10 | | "(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 11 | | Sec. 15-155. Employer contributions.
| 12 | | (a) Except as otherwise provided in this Section, the The | 13 | | State of Illinois shall make contributions by appropriations of
| 14 | | amounts which, together with the other employer contributions |
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| 1 | | from trust,
federal, and other funds, employee contributions, | 2 | | income from investments,
and other income of this System, will | 3 | | be sufficient to meet the cost of
maintaining and administering | 4 | | the System on a 90% funded basis in accordance
with actuarial | 5 | | recommendations.
| 6 | | The Board shall determine the amount of State contributions | 7 | | required for
each fiscal year on the basis of the actuarial | 8 | | tables and other assumptions
adopted by the Board and the | 9 | | recommendations of the actuary, using the formula
in subsection | 10 | | (a-1).
| 11 | | (a-1) Except as provided in subsection (b-5), for For State | 12 | | fiscal years 2012 through 2045, the minimum contribution
to the | 13 | | System to be made by the State for each fiscal year shall be an | 14 | | amount
determined by the System to be sufficient to bring the | 15 | | total assets of the
System up to 90% of the total actuarial | 16 | | liabilities of the System by the end of
State fiscal year 2045. | 17 | | In making these determinations, the required State
| 18 | | contribution shall be calculated each year as a level | 19 | | percentage of payroll
over the years remaining to and including | 20 | | fiscal year 2045 and shall be
determined under the projected | 21 | | unit credit actuarial cost method.
| 22 | | For State fiscal years 1996 through 2005, the State | 23 | | contribution to
the System, as a percentage of the applicable | 24 | | employee payroll, shall be
increased in equal annual increments | 25 | | so that by State fiscal year 2011, the
State is contributing at | 26 | | the rate required under this Section.
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| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution for State fiscal year 2006 is | 3 | | $166,641,900.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2007 is | 6 | | $252,064,100.
| 7 | | For each of State fiscal years 2008 through 2009, the State | 8 | | contribution to
the System, as a percentage of the applicable | 9 | | employee payroll, shall be
increased in equal annual increments | 10 | | from the required State contribution for State fiscal year | 11 | | 2007, so that by State fiscal year 2011, the
State is | 12 | | contributing at the rate otherwise required under this Section.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State contribution for State fiscal year 2010 is | 15 | | $702,514,000 and shall be made from the State Pensions Fund and | 16 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 17 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 18 | | share of bond sale expenses determined by the System's share of | 19 | | total bond proceeds, (ii) any amounts received from the General | 20 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 21 | | proceeds due to the issuance of discounted bonds, if | 22 | | applicable. | 23 | | Notwithstanding any other provision of this Article, the
| 24 | | total required State contribution for State fiscal year 2011 is
| 25 | | the amount recertified by the System on or before April 1, 2011 | 26 | | pursuant to Section 15-165 and shall be made from the State |
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| 1 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 2 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 3 | | less (i) the pro rata
share of bond sale expenses determined by | 4 | | the System's share of
total bond proceeds, (ii) any amounts | 5 | | received from the General
Revenue Fund in fiscal year 2011, and | 6 | | (iii) any reduction in bond
proceeds due to the issuance of | 7 | | discounted bonds, if
applicable. | 8 | | Except as provided in subsection (b-5), beginning | 9 | | Beginning in State fiscal year 2046, the minimum State | 10 | | contribution for
each fiscal year shall be the amount needed to | 11 | | maintain the total assets of
the System at 90% of the total | 12 | | actuarial liabilities of the System.
| 13 | | Amounts received by the System pursuant to Section 25 of | 14 | | the Budget Stabilization Act or Section 8.12 of the State | 15 | | Finance Act in any fiscal year do not reduce and do not | 16 | | constitute payment of any portion of the minimum State | 17 | | contribution required under this Article in that fiscal year. | 18 | | Such amounts shall not reduce, and shall not be included in the | 19 | | calculation of, the required State contributions under this | 20 | | Article in any future year until the System has reached a | 21 | | funding ratio of at least 90%. A reference in this Article to | 22 | | the "required State contribution" or any substantially similar | 23 | | term does not include or apply to any amounts payable to the | 24 | | System under Section 25 of the Budget Stabilization Act. | 25 | | Notwithstanding any other provision of this Section, the | 26 | | required State
contribution for State fiscal year 2005 and for |
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| 1 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 2 | | under this Section and
certified under Section 15-165, shall | 3 | | not exceed an amount equal to (i) the
amount of the required | 4 | | State contribution that would have been calculated under
this | 5 | | Section for that fiscal year if the System had not received any | 6 | | payments
under subsection (d) of Section 7.2 of the General | 7 | | Obligation Bond Act, minus
(ii) the portion of the State's | 8 | | total debt service payments for that fiscal
year on the bonds | 9 | | issued in fiscal year 2003 for the purposes of that Section | 10 | | 7.2, as determined
and certified by the Comptroller, that is | 11 | | the same as the System's portion of
the total moneys | 12 | | distributed under subsection (d) of Section 7.2 of the General
| 13 | | Obligation Bond Act. In determining this maximum for State | 14 | | fiscal years 2008 through 2010, however, the amount referred to | 15 | | in item (i) shall be increased, as a percentage of the | 16 | | applicable employee payroll, in equal increments calculated | 17 | | from the sum of the required State contribution for State | 18 | | fiscal year 2007 plus the applicable portion of the State's | 19 | | total debt service payments for fiscal year 2007 on the bonds | 20 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 21 | | the General
Obligation Bond Act, so that, by State fiscal year | 22 | | 2011, the
State is contributing at the rate otherwise required | 23 | | under this Section.
| 24 | | (a-5) On or before November 1 of each year, beginning | 25 | | November 1, 2012, the Board shall submit to the State Actuary a | 26 | | proposed certification of the amount of the required State |
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| 1 | | contribution to the System for the next fiscal year, along with | 2 | | all of the actuarial assumptions, calculations, and data upon | 3 | | which that proposed certification is based. On or before | 4 | | January 1 of each year beginning January 1, 2013, the State | 5 | | Actuary shall issue a preliminary report concerning the | 6 | | proposed certification and identifying, if necessary, | 7 | | recommended changes in actuarial assumptions that the Board | 8 | | must consider before finalizing its certification of the | 9 | | required State contributions. On or before January 15, 2013 and | 10 | | each January 15 thereafter, the Board shall certify to the | 11 | | Governor and the General Assembly the amount of the required | 12 | | State contribution for the next fiscal year. The Board's | 13 | | certification must note any deviations from the State Actuary's | 14 | | recommended changes, the reason or reasons for not following | 15 | | the State Actuary's recommended changes, and the fiscal impact | 16 | | of not following the State Actuary's recommended changes on the | 17 | | required State contribution. | 18 | | (b) If an employee is paid from trust or federal funds, the | 19 | | employer
shall pay to the Board contributions from those funds | 20 | | which are
sufficient to cover the accruing normal costs on | 21 | | behalf of the employee.
However, universities having employees | 22 | | who are compensated out of local
auxiliary funds, income funds, | 23 | | or service enterprise funds are not required
to pay such | 24 | | contributions on behalf of those employees. The local auxiliary
| 25 | | funds, income funds, and service enterprise funds of | 26 | | universities shall not be
considered trust funds for the |
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| 1 | | purpose of this Article, but funds of alumni
associations, | 2 | | foundations, and athletic associations which are affiliated | 3 | | with
the universities included as employers under this Article | 4 | | and other employers
which do not receive State appropriations | 5 | | are considered to be trust funds for
the purpose of this | 6 | | Article.
| 7 | | (b-1) The City of Urbana and the City of Champaign shall | 8 | | each make
employer contributions to this System for their | 9 | | respective firefighter
employees who participate in this | 10 | | System pursuant to subsection (h) of Section
15-107. The rate | 11 | | of contributions to be made by those municipalities shall
be | 12 | | determined annually by the Board on the basis of the actuarial | 13 | | assumptions
adopted by the Board and the recommendations of the | 14 | | actuary, and shall be
expressed as a percentage of salary for | 15 | | each such employee. The Board shall
certify the rate to the | 16 | | affected municipalities as soon as may be practical.
The | 17 | | employer contributions required under this subsection shall be | 18 | | remitted by
the municipality to the System at the same time and | 19 | | in the same manner as
employee contributions.
| 20 | | (b-5) If at least 50% of Tier I employees making an | 21 | | election under Section 15-134.6 before June 1, 2013 choose the | 22 | | option under paragraph (1) of subsection (a) of that Section, | 23 | | then: | 24 | | (1) In lieu of the State contributions required under | 25 | | subsection (a-1), for State fiscal years 2014 through 2043 | 26 | | the minimum contribution to the System to be made by the |
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| 1 | | State for each fiscal year shall be an amount determined by | 2 | | the System to be equal to the sum of (1) the State's | 3 | | portion of the projected normal cost for that fiscal year, | 4 | | plus (2) an amount sufficient to bring the total assets of | 5 | | the System up to 100% of the total actuarial liabilities of | 6 | | the System by the end of
State fiscal year 2043. In making | 7 | | these determinations, the required State contribution | 8 | | shall be calculated each year as a level percentage of | 9 | | payroll over the years remaining to and including fiscal | 10 | | year 2043 and shall be determined under the projected unit | 11 | | credit actuarial cost method. | 12 | | (2) Beginning in State fiscal year 2044, the minimum | 13 | | State contribution for each fiscal year shall be the amount | 14 | | needed to maintain the total assets of the System at 100% | 15 | | of the total actuarial liabilities of the System. | 16 | | (b-6) If less than 50% of Tier I employees making an | 17 | | election under Section 15-134.6 before June 1, 2013 choose the | 18 | | option under paragraph (1) of subsection (a) of that Section, | 19 | | then: | 20 | | (1) Instead of the annual required contribution | 21 | | otherwise specified in subsection (b-5) of this Section, | 22 | | the annual required contribution to the System to be made | 23 | | by the State shall be determined under subsection (a-1) of | 24 | | this Section. | 25 | | (2) As soon as possible after June 1, 2014, the Board | 26 | | shall recertify the annual required contribution by the |
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| 1 | | State for State fiscal year 2015. | 2 | | (c) Through State fiscal year 1995: The total employer | 3 | | contribution shall
be apportioned among the various funds of | 4 | | the State and other employers,
whether trust, federal, or other | 5 | | funds, in accordance with actuarial procedures
approved by the | 6 | | Board. State of Illinois contributions for employers receiving
| 7 | | State appropriations for personal services shall be payable | 8 | | from appropriations
made to the employers or to the System. The | 9 | | contributions for Class I
community colleges covering earnings | 10 | | other than those paid from trust and
federal funds, shall be | 11 | | payable solely from appropriations to the Illinois
Community | 12 | | College Board or the System for employer contributions.
| 13 | | (d) Beginning in State fiscal year 1996, the required State | 14 | | contributions
to the System shall be appropriated directly to | 15 | | the System and shall be payable
through vouchers issued in | 16 | | accordance with subsection (c) of Section 15-165, except as | 17 | | provided in subsection (g).
| 18 | | (e) The State Comptroller shall draw warrants payable to | 19 | | the System upon
proper certification by the System or by the | 20 | | employer in accordance with the
appropriation laws and this | 21 | | Code.
| 22 | | (f) Normal costs under this Section means liability for
| 23 | | pensions and other benefits which accrues to the System because | 24 | | of the
credits earned for service rendered by the participants | 25 | | during the
fiscal year and expenses of administering the | 26 | | System, but shall not
include the principal of or any |
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| 1 | | redemption premium or interest on any bonds
issued by the Board | 2 | | or any expenses incurred or deposits required in
connection | 3 | | therewith.
| 4 | | (g) If the amount of a participant's earnings for any | 5 | | academic year used to determine the final rate of earnings, | 6 | | determined on a full-time equivalent basis, exceeds the amount | 7 | | of his or her earnings with the same employer for the previous | 8 | | academic year, determined on a full-time equivalent basis, by | 9 | | more than 6%, the participant's employer shall pay to the | 10 | | System, in addition to all other payments required under this | 11 | | Section and in accordance with guidelines established by the | 12 | | System, the present value of the increase in benefits resulting | 13 | | from the portion of the increase in earnings that is in excess | 14 | | of 6%. This present value shall be computed by the System on | 15 | | the basis of the actuarial assumptions and tables used in the | 16 | | most recent actuarial valuation of the System that is available | 17 | | at the time of the computation. The System may require the | 18 | | employer to provide any pertinent information or | 19 | | documentation. | 20 | | Whenever it determines that a payment is or may be required | 21 | | under this subsection (g), the System shall calculate the | 22 | | amount of the payment and bill the employer for that amount. | 23 | | The bill shall specify the calculations used to determine the | 24 | | amount due. If the employer disputes the amount of the bill, it | 25 | | may, within 30 days after receipt of the bill, apply to the | 26 | | System in writing for a recalculation. The application must |
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| 1 | | specify in detail the grounds of the dispute and, if the | 2 | | employer asserts that the calculation is subject to subsection | 3 | | (h) or (i) of this Section, must include an affidavit setting | 4 | | forth and attesting to all facts within the employer's | 5 | | knowledge that are pertinent to the applicability of subsection | 6 | | (h) or (i). Upon receiving a timely application for | 7 | | recalculation, the System shall review the application and, if | 8 | | appropriate, recalculate the amount due.
| 9 | | The employer contributions required under this subsection | 10 | | (g) (f) may be paid in the form of a lump sum within 90 days | 11 | | after receipt of the bill. If the employer contributions are | 12 | | not paid within 90 days after receipt of the bill, then | 13 | | interest will be charged at a rate equal to the System's annual | 14 | | actuarially assumed rate of return on investment compounded | 15 | | annually from the 91st day after receipt of the bill. Payments | 16 | | must be concluded within 3 years after the employer's receipt | 17 | | of the bill. | 18 | | (h) This subsection (h) applies only to payments made or | 19 | | salary increases given on or after June 1, 2005 but before July | 20 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 21 | | require the System to refund any payments received before July | 22 | | 31, 2006 (the effective date of Public Act 94-1057). | 23 | | When assessing payment for any amount due under subsection | 24 | | (g), the System shall exclude earnings increases paid to | 25 | | participants under contracts or collective bargaining | 26 | | agreements entered into, amended, or renewed before June 1, |
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| 1 | | 2005.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (g), the System shall exclude earnings increases paid to a | 4 | | participant at a time when the participant is 10 or more years | 5 | | from retirement eligibility under Section 15-135.
| 6 | | When assessing payment for any amount due under subsection | 7 | | (g), the System shall exclude earnings increases resulting from | 8 | | overload work, including a contract for summer teaching, or | 9 | | overtime when the employer has certified to the System, and the | 10 | | System has approved the certification, that: (i) in the case of | 11 | | overloads (A) the overload work is for the sole purpose of | 12 | | academic instruction in excess of the standard number of | 13 | | instruction hours for a full-time employee occurring during the | 14 | | academic year that the overload is paid and (B) the earnings | 15 | | increases are equal to or less than the rate of pay for | 16 | | academic instruction computed using the participant's current | 17 | | salary rate and work schedule; and (ii) in the case of | 18 | | overtime, the overtime was necessary for the educational | 19 | | mission. | 20 | | When assessing payment for any amount due under subsection | 21 | | (g), the System shall exclude any earnings increase resulting | 22 | | from (i) a promotion for which the employee moves from one | 23 | | classification to a higher classification under the State | 24 | | Universities Civil Service System, (ii) a promotion in academic | 25 | | rank for a tenured or tenure-track faculty position, or (iii) a | 26 | | promotion that the Illinois Community College Board has |
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| 1 | | recommended in accordance with subsection (k) of this Section. | 2 | | These earnings increases shall be excluded only if the | 3 | | promotion is to a position that has existed and been filled by | 4 | | a member for no less than one complete academic year and the | 5 | | earnings increase as a result of the promotion is an increase | 6 | | that results in an amount no greater than the average salary | 7 | | paid for other similar positions. | 8 | | (i) When assessing payment for any amount due under | 9 | | subsection (g), the System shall exclude any salary increase | 10 | | described in subsection (h) of this Section given on or after | 11 | | July 1, 2011 but before July 1, 2014 under a contract or | 12 | | collective bargaining agreement entered into, amended, or | 13 | | renewed on or after June 1, 2005 but before July 1, 2011. | 14 | | Notwithstanding any other provision of this Section, any | 15 | | payments made or salary increases given after June 30, 2014 | 16 | | shall be used in assessing payment for any amount due under | 17 | | subsection (g) of this Section.
| 18 | | (j) The System shall prepare a report and file copies of | 19 | | the report with the Governor and the General Assembly by | 20 | | January 1, 2007 that contains all of the following information: | 21 | | (1) The number of recalculations required by the | 22 | | changes made to this Section by Public Act 94-1057 for each | 23 | | employer. | 24 | | (2) The dollar amount by which each employer's | 25 | | contribution to the System was changed due to | 26 | | recalculations required by Public Act 94-1057. |
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| 1 | | (3) The total amount the System received from each | 2 | | employer as a result of the changes made to this Section by | 3 | | Public Act 94-4. | 4 | | (4) The increase in the required State contribution | 5 | | resulting from the changes made to this Section by Public | 6 | | Act 94-1057. | 7 | | (k) The Illinois Community College Board shall adopt rules | 8 | | for recommending lists of promotional positions submitted to | 9 | | the Board by community colleges and for reviewing the | 10 | | promotional lists on an annual basis. When recommending | 11 | | promotional lists, the Board shall consider the similarity of | 12 | | the positions submitted to those positions recognized for State | 13 | | universities by the State Universities Civil Service System. | 14 | | The Illinois Community College Board shall file a copy of its | 15 | | findings with the System. The System shall consider the | 16 | | findings of the Illinois Community College Board when making | 17 | | determinations under this Section. The System shall not exclude | 18 | | any earnings increases resulting from a promotion when the | 19 | | promotion was not submitted by a community college. Nothing in | 20 | | this subsection (k) shall require any community college to | 21 | | submit any information to the Community College Board.
| 22 | | (l) For purposes of determining the required State | 23 | | contribution to the System, the value of the System's assets | 24 | | shall be equal to the actuarial value of the System's assets, | 25 | | which shall be calculated as follows: | 26 | | As of June 30, 2008, the actuarial value of the System's |
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| 1 | | assets shall be equal to the market value of the assets as of | 2 | | that date. In determining the actuarial value of the System's | 3 | | assets for fiscal years after June 30, 2008, any actuarial | 4 | | gains or losses from investment return incurred in a fiscal | 5 | | year shall be recognized in equal annual amounts over the | 6 | | 5-year period following that fiscal year. | 7 | | (m) For purposes of determining the required State | 8 | | contribution to the system for a particular year, the actuarial | 9 | | value of assets shall be assumed to earn a rate of return equal | 10 | | to the system's actuarially assumed rate of return. | 11 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 12 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 13 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)"; and
| 14 | | by deleting page 144, line 4, through page 145, line 22; and | 15 | | by replacing page 180, line 25, through page 201, line 20, with | 16 | | the following:
| 17 | | "(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 18 | | Sec. 16-158. Contributions by State and other employing | 19 | | units.
| 20 | | (a) The State shall make contributions to the System by | 21 | | means of
appropriations from the Common School Fund and other | 22 | | State funds of amounts
which, together with other employer | 23 | | contributions, employee contributions,
investment income, and |
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| 1 | | other income, will be sufficient to meet the cost of
| 2 | | maintaining and administering the System on a 90% funded basis | 3 | | in accordance
with actuarial recommendations.
| 4 | | The Board shall determine the amount of State contributions | 5 | | required for
each fiscal year on the basis of the actuarial | 6 | | tables and other assumptions
adopted by the Board and the | 7 | | recommendations of the actuary, using the formula
in subsection | 8 | | (b-3).
| 9 | | (a-1) Annually, on or before November 15 until November 15, | 10 | | 2011 , the Board shall certify to the
Governor the amount of the | 11 | | required State contribution for the coming fiscal
year. The | 12 | | certification under this subsection (a-1) shall include a copy | 13 | | of the actuarial recommendations
upon which it is based.
| 14 | | On or before May 1, 2004, the Board shall recalculate and | 15 | | recertify to
the Governor the amount of the required State | 16 | | contribution to the System for
State fiscal year 2005, taking | 17 | | into account the amounts appropriated to and
received by the | 18 | | System under subsection (d) of Section 7.2 of the General
| 19 | | Obligation Bond Act.
| 20 | | On or before July 1, 2005 April 1, 2011 , the Board shall | 21 | | recalculate and recertify
to the Governor the amount of the | 22 | | required State
contribution to the System for State fiscal year | 23 | | 2006, taking into account the changes in required State | 24 | | contributions made by this amendatory Act of the 94th General | 25 | | Assembly.
| 26 | | On or before April 1, 2011 June 15, 2010 , the Board shall |
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| 1 | | recalculate and recertify to the Governor the amount of the | 2 | | required State contribution to the System for State fiscal year | 3 | | 2011, applying the changes made by Public Act 96-889 to the | 4 | | System's assets and liabilities as of June 30, 2009 as though | 5 | | Public Act 96-889 was approved on that date. | 6 | | (a-5) On or before November 1 of each year, beginning
| 7 | | November 1, 2012, the Board shall submit to the State Actuary,
| 8 | | the Governor, and the General Assembly a proposed certification
| 9 | | of the amount of the required State contribution to the System
| 10 | | for the next fiscal year, along with all of the actuarial
| 11 | | assumptions, calculations, and data upon which that proposed
| 12 | | certification is based. On or before January 1 of each year,
| 13 | | beginning January 1, 2013, the State Actuary shall issue a
| 14 | | preliminary report concerning the proposed certification and
| 15 | | identifying, if necessary, recommended changes in actuarial
| 16 | | assumptions that the Board must consider before finalizing its
| 17 | | certification of the required State contributions. On or before
| 18 | | January 15, 2013 and each January 15 thereafter, the Board
| 19 | | shall certify to the Governor and the General Assembly the
| 20 | | amount of the required State contribution for the next fiscal
| 21 | | year. The Board's certification must note any deviations from
| 22 | | the State Actuary's recommended changes, the reason or reasons
| 23 | | for not following the State Actuary's recommended changes, and
| 24 | | the fiscal impact of not following the State Actuary's
| 25 | | recommended changes on the required State contribution. | 26 | | (b) Through State fiscal year 1995, the State contributions |
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| 1 | | shall be
paid to the System in accordance with Section 18-7 of | 2 | | the School Code.
| 3 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 4 | | of each month,
or as soon thereafter as may be practicable, the | 5 | | Board shall submit vouchers
for payment of State contributions | 6 | | to the System, in a total monthly amount of
one-twelfth of the | 7 | | required annual State contribution certified under
subsection | 8 | | (a-1).
From the
effective date of this amendatory Act of the | 9 | | 93rd General Assembly
through June 30, 2004, the Board shall | 10 | | not submit vouchers for the
remainder of fiscal year 2004 in | 11 | | excess of the fiscal year 2004
certified contribution amount | 12 | | determined under this Section
after taking into consideration | 13 | | the transfer to the System
under subsection (a) of Section | 14 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 15 | | the State Comptroller and
Treasurer by warrants drawn on the | 16 | | funds appropriated to the System for that
fiscal year.
| 17 | | If in any month the amount remaining unexpended from all | 18 | | other appropriations
to the System for the applicable fiscal | 19 | | year (including the appropriations to
the System under Section | 20 | | 8.12 of the State Finance Act and Section 1 of the
State | 21 | | Pension Funds Continuing Appropriation Act) is less than the | 22 | | amount
lawfully vouchered under this subsection, the | 23 | | difference shall be paid from the
Common School Fund under the | 24 | | continuing appropriation authority provided in
Section 1.1 of | 25 | | the State Pension Funds Continuing Appropriation Act.
| 26 | | (b-2) Allocations from the Common School Fund apportioned |
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| 1 | | to school
districts not coming under this System shall not be | 2 | | diminished or affected by
the provisions of this Article.
| 3 | | (b-3) For State fiscal years 2012 through 2045, the minimum | 4 | | contribution
to the System to be made by the State for each | 5 | | fiscal year shall be an amount
determined by the System to be | 6 | | sufficient to bring the total assets of the
System up to 90% of | 7 | | the total actuarial liabilities of the System by the end of
| 8 | | State fiscal year 2045. In making these determinations, the | 9 | | required State
contribution shall be calculated each year as a | 10 | | level percentage of payroll
over the years remaining to and | 11 | | including fiscal year 2045 and shall be
determined under the | 12 | | projected unit credit actuarial cost method.
| 13 | | For State fiscal years 1996 through 2005, the State | 14 | | contribution to the
System, as a percentage of the applicable | 15 | | employee payroll, shall be increased
in equal annual increments | 16 | | so that by State fiscal year 2011, the State is
contributing at | 17 | | the rate required under this Section; except that in the
| 18 | | following specified State fiscal years, the State contribution | 19 | | to the System
shall not be less than the following indicated | 20 | | percentages of the applicable
employee payroll, even if the | 21 | | indicated percentage will produce a State
contribution in | 22 | | excess of the amount otherwise required under this subsection
| 23 | | and subsection (a), and notwithstanding any contrary | 24 | | certification made under
subsection (a-1) before the effective | 25 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 26 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
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| 1 | | 2003; and
13.56% in FY 2004.
| 2 | | Notwithstanding any other provision of this Article, the | 3 | | total required State
contribution for State fiscal year 2006 is | 4 | | $534,627,700.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State
contribution for State fiscal year 2007 is | 7 | | $738,014,500.
| 8 | | For each of State fiscal years 2008 through 2009, the State | 9 | | contribution to
the System, as a percentage of the applicable | 10 | | employee payroll, shall be
increased in equal annual increments | 11 | | from the required State contribution for State fiscal year | 12 | | 2007, so that by State fiscal year 2011, the
State is | 13 | | contributing at the rate otherwise required under this Section.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State contribution for State fiscal year 2010 is | 16 | | $2,089,268,000 and shall be made from the proceeds of bonds | 17 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 18 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 19 | | expenses determined by the System's share of total bond | 20 | | proceeds, (ii) any amounts received from the Common School Fund | 21 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 22 | | due to the issuance of discounted bonds, if applicable. | 23 | | Notwithstanding any other provision of this Article, the
| 24 | | total required State contribution for State fiscal year 2011 is
| 25 | | the amount recertified by the System on or before April 1, 2011 | 26 | | pursuant to subsection (a-1) of this Section and shall be made |
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| 1 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 2 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 3 | | pro rata share of bond sale
expenses determined by the System's | 4 | | share of total bond
proceeds, (ii) any amounts received from | 5 | | the Common School Fund
in fiscal year 2011, and (iii) any | 6 | | reduction in bond proceeds
due to the issuance of discounted | 7 | | bonds, if applicable. This amount shall include, in addition to | 8 | | the amount certified by the System, an amount necessary to meet | 9 | | employer contributions required by the State as an employer | 10 | | under paragraph (e) of this Section, which may also be used by | 11 | | the System for contributions required by paragraph (a) of | 12 | | Section 16-127. | 13 | | Beginning in State fiscal year 2046, the minimum State | 14 | | contribution for
each fiscal year shall be the amount needed to | 15 | | maintain the total assets of
the System at 90% of the total | 16 | | actuarial liabilities of the System.
| 17 | | Amounts received by the System pursuant to Section 25 of | 18 | | the Budget Stabilization Act or Section 8.12 of the State | 19 | | Finance Act in any fiscal year do not reduce and do not | 20 | | constitute payment of any portion of the minimum State | 21 | | contribution required under this Article in that fiscal year. | 22 | | Such amounts shall not reduce, and shall not be included in the | 23 | | calculation of, the required State contributions under this | 24 | | Article in any future year until the System has reached a | 25 | | funding ratio of at least 90%. A reference in this Article to | 26 | | the "required State contribution" or any substantially similar |
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| 1 | | term does not include or apply to any amounts payable to the | 2 | | System under Section 25 of the Budget Stabilization Act. | 3 | | Notwithstanding any other provision of this Section, the | 4 | | required State
contribution for State fiscal year 2005 and for | 5 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 6 | | under this Section and
certified under subsection (a-1), shall | 7 | | not exceed an amount equal to (i) the
amount of the required | 8 | | State contribution that would have been calculated under
this | 9 | | Section for that fiscal year if the System had not received any | 10 | | payments
under subsection (d) of Section 7.2 of the General | 11 | | Obligation Bond Act, minus
(ii) the portion of the State's | 12 | | total debt service payments for that fiscal
year on the bonds | 13 | | issued in fiscal year 2003 for the purposes of that Section | 14 | | 7.2, as determined
and certified by the Comptroller, that is | 15 | | the same as the System's portion of
the total moneys | 16 | | distributed under subsection (d) of Section 7.2 of the General
| 17 | | Obligation Bond Act. In determining this maximum for State | 18 | | fiscal years 2008 through 2010, however, the amount referred to | 19 | | in item (i) shall be increased, as a percentage of the | 20 | | applicable employee payroll, in equal increments calculated | 21 | | from the sum of the required State contribution for State | 22 | | fiscal year 2007 plus the applicable portion of the State's | 23 | | total debt service payments for fiscal year 2007 on the bonds | 24 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 25 | | the General
Obligation Bond Act, so that, by State fiscal year | 26 | | 2011, the
State is contributing at the rate otherwise required |
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| 1 | | under this Section.
| 2 | | (c) Payment of the required State contributions and of all | 3 | | pensions,
retirement annuities, death benefits, refunds, and | 4 | | other benefits granted
under or assumed by this System, and all | 5 | | expenses in connection with the
administration and operation | 6 | | thereof, are obligations of the State.
| 7 | | If members are paid from special trust or federal funds | 8 | | which are
administered by the employing unit, whether school | 9 | | district or other
unit, the employing unit shall pay to the | 10 | | System from such
funds the full accruing retirement costs based | 11 | | upon that
service, as determined by the System. Employer | 12 | | contributions, based on
salary paid to members from federal | 13 | | funds, may be forwarded by the distributing
agency of the State | 14 | | of Illinois to the System prior to allocation, in an
amount | 15 | | determined in accordance with guidelines established by such
| 16 | | agency and the System.
| 17 | | (d) Effective July 1, 1986, any employer of a teacher as | 18 | | defined in
paragraph (8) of Section 16-106 shall pay the | 19 | | employer's normal cost
of benefits based upon the teacher's | 20 | | service, in addition to
employee contributions, as determined | 21 | | by the System. Such employer
contributions shall be forwarded | 22 | | monthly in accordance with guidelines
established by the | 23 | | System.
| 24 | | However, with respect to benefits granted under Section | 25 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 26 | | of Section 16-106, the
employer's contribution shall be 12% |
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| 1 | | (rather than 20%) of the member's
highest annual salary rate | 2 | | for each year of creditable service granted, and
the employer | 3 | | shall also pay the required employee contribution on behalf of
| 4 | | the teacher. For the purposes of Sections 16-133.4 and | 5 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 6 | | 16-106 who is serving in that capacity
while on leave of | 7 | | absence from another employer under this Article shall not
be | 8 | | considered an employee of the employer from which the teacher | 9 | | is on leave.
| 10 | | (e) Beginning July 1, 1998, every employer of a teacher
| 11 | | shall pay to the System an employer contribution computed as | 12 | | follows:
| 13 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 14 | | employer
contribution shall be equal to 0.3% of each | 15 | | teacher's salary.
| 16 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 17 | | contribution shall be equal to 0.58% of each teacher's | 18 | | salary.
| 19 | | The school district or other employing unit may pay these | 20 | | employer
contributions out of any source of funding available | 21 | | for that purpose and
shall forward the contributions to the | 22 | | System on the schedule established
for the payment of member | 23 | | contributions.
| 24 | | These employer contributions are intended to offset a | 25 | | portion of the cost
to the System of the increases in | 26 | | retirement benefits resulting from this
amendatory Act of 1998.
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| 1 | | Each employer of teachers is entitled to a credit against | 2 | | the contributions
required under this subsection (e) with | 3 | | respect to salaries paid to teachers
for the period January 1, | 4 | | 2002 through June 30, 2003, equal to the amount paid
by that | 5 | | employer under subsection (a-5) of Section 6.6 of the State | 6 | | Employees
Group Insurance Act of 1971 with respect to salaries | 7 | | paid to teachers for that
period.
| 8 | | The additional 1% employee contribution required under | 9 | | Section 16-152 by
this amendatory Act of 1998 is the | 10 | | responsibility of the teacher and not the
teacher's employer, | 11 | | unless the employer agrees, through collective bargaining
or | 12 | | otherwise, to make the contribution on behalf of the teacher.
| 13 | | If an employer is required by a contract in effect on May | 14 | | 1, 1998 between the
employer and an employee organization to | 15 | | pay, on behalf of all its full-time
employees
covered by this | 16 | | Article, all mandatory employee contributions required under
| 17 | | this Article, then the employer shall be excused from paying | 18 | | the employer
contribution required under this subsection (e) | 19 | | for the balance of the term
of that contract. The employer and | 20 | | the employee organization shall jointly
certify to the System | 21 | | the existence of the contractual requirement, in such
form as | 22 | | the System may prescribe. This exclusion shall cease upon the
| 23 | | termination, extension, or renewal of the contract at any time | 24 | | after May 1,
1998.
| 25 | | (f) If the amount of a teacher's salary for any school year | 26 | | used to determine final average salary exceeds the member's |
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| 1 | | annual full-time salary rate with the same employer for the | 2 | | previous school year by more than 6%, the teacher's employer | 3 | | shall pay to the System, in addition to all other payments | 4 | | required under this Section and in accordance with guidelines | 5 | | established by the System, the present value of the increase in | 6 | | benefits resulting from the portion of the increase in salary | 7 | | that is in excess of 6%. This present value shall be computed | 8 | | by the System on the basis of the actuarial assumptions and | 9 | | tables used in the most recent actuarial valuation of the | 10 | | System that is available at the time of the computation. If a | 11 | | teacher's salary for the 2005-2006 school year is used to | 12 | | determine final average salary under this subsection (f), then | 13 | | the changes made to this subsection (f) by Public Act 94-1057 | 14 | | shall apply in calculating whether the increase in his or her | 15 | | salary is in excess of 6%. For the purposes of this Section, | 16 | | change in employment under Section 10-21.12 of the School Code | 17 | | on or after June 1, 2005 shall constitute a change in employer. | 18 | | The System may require the employer to provide any pertinent | 19 | | information or documentation.
The changes made to this | 20 | | subsection (f) by this amendatory Act of the 94th General | 21 | | Assembly apply without regard to whether the teacher was in | 22 | | service on or after its effective date.
| 23 | | Whenever it determines that a payment is or may be required | 24 | | under this subsection, the System shall calculate the amount of | 25 | | the payment and bill the employer for that amount. The bill | 26 | | shall specify the calculations used to determine the amount |
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| 1 | | due. If the employer disputes the amount of the bill, it may, | 2 | | within 30 days after receipt of the bill, apply to the System | 3 | | in writing for a recalculation. The application must specify in | 4 | | detail the grounds of the dispute and, if the employer asserts | 5 | | that the calculation is subject to subsection (g) or (h) of | 6 | | this Section, must include an affidavit setting forth and | 7 | | attesting to all facts within the employer's knowledge that are | 8 | | pertinent to the applicability of that subsection. Upon | 9 | | receiving a timely application for recalculation, the System | 10 | | shall review the application and, if appropriate, recalculate | 11 | | the amount due.
| 12 | | The employer contributions required under this subsection | 13 | | (f) may be paid in the form of a lump sum within 90 days after | 14 | | receipt of the bill. If the employer contributions are not paid | 15 | | within 90 days after receipt of the bill, then interest will be | 16 | | charged at a rate equal to the System's annual actuarially | 17 | | assumed rate of return on investment compounded annually from | 18 | | the 91st day after receipt of the bill. Payments must be | 19 | | concluded within 3 years after the employer's receipt of the | 20 | | bill.
| 21 | | (g) This subsection (g) applies only to payments made or | 22 | | salary increases given on or after June 1, 2005 but before July | 23 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 24 | | require the System to refund any payments received before
July | 25 | | 31, 2006 (the effective date of Public Act 94-1057). | 26 | | When assessing payment for any amount due under subsection |
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| 1 | | (f), the System shall exclude salary increases paid to teachers | 2 | | under contracts or collective bargaining agreements entered | 3 | | into, amended, or renewed before June 1, 2005.
| 4 | | When assessing payment for any amount due under subsection | 5 | | (f), the System shall exclude salary increases paid to a | 6 | | teacher at a time when the teacher is 10 or more years from | 7 | | retirement eligibility under Section 16-132 or 16-133.2.
| 8 | | When assessing payment for any amount due under subsection | 9 | | (f), the System shall exclude salary increases resulting from | 10 | | overload work, including summer school, when the school | 11 | | district has certified to the System, and the System has | 12 | | approved the certification, that (i) the overload work is for | 13 | | the sole purpose of classroom instruction in excess of the | 14 | | standard number of classes for a full-time teacher in a school | 15 | | district during a school year and (ii) the salary increases are | 16 | | equal to or less than the rate of pay for classroom instruction | 17 | | computed on the teacher's current salary and work schedule.
| 18 | | When assessing payment for any amount due under subsection | 19 | | (f), the System shall exclude a salary increase resulting from | 20 | | a promotion (i) for which the employee is required to hold a | 21 | | certificate or supervisory endorsement issued by the State | 22 | | Teacher Certification Board that is a different certification | 23 | | or supervisory endorsement than is required for the teacher's | 24 | | previous position and (ii) to a position that has existed and | 25 | | been filled by a member for no less than one complete academic | 26 | | year and the salary increase from the promotion is an increase |
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| 1 | | that results in an amount no greater than the lesser of the | 2 | | average salary paid for other similar positions in the district | 3 | | requiring the same certification or the amount stipulated in | 4 | | the collective bargaining agreement for a similar position | 5 | | requiring the same certification.
| 6 | | When assessing payment for any amount due under subsection | 7 | | (f), the System shall exclude any payment to the teacher from | 8 | | the State of Illinois or the State Board of Education over | 9 | | which the employer does not have discretion, notwithstanding | 10 | | that the payment is included in the computation of final | 11 | | average salary.
| 12 | | (h) When assessing payment for any amount due under | 13 | | subsection (f), the System shall exclude any salary increase | 14 | | described in subsection (g) of this Section given on or after | 15 | | July 1, 2011 but before July 1, 2014 under a contract or | 16 | | collective bargaining agreement entered into, amended, or | 17 | | renewed on or after June 1, 2005 but before July 1, 2011. | 18 | | Notwithstanding any other provision of this Section, any | 19 | | payments made or salary increases given after June 30, 2014 | 20 | | shall be used in assessing payment for any amount due under | 21 | | subsection (f) of this Section.
| 22 | | (i) The System shall prepare a report and file copies of | 23 | | the report with the Governor and the General Assembly by | 24 | | January 1, 2007 that contains all of the following information: | 25 | | (1) The number of recalculations required by the | 26 | | changes made to this Section by Public Act 94-1057 for each |
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| 1 | | employer. | 2 | | (2) The dollar amount by which each employer's | 3 | | contribution to the System was changed due to | 4 | | recalculations required by Public Act 94-1057. | 5 | | (3) The total amount the System received from each | 6 | | employer as a result of the changes made to this Section by | 7 | | Public Act 94-4. | 8 | | (4) The increase in the required State contribution | 9 | | resulting from the changes made to this Section by Public | 10 | | Act 94-1057.
| 11 | | (j) For purposes of determining the required State | 12 | | contribution to the System, the value of the System's assets | 13 | | shall be equal to the actuarial value of the System's assets, | 14 | | which shall be calculated as follows: | 15 | | As of June 30, 2008, the actuarial value of the System's | 16 | | assets shall be equal to the market value of the assets as of | 17 | | that date. In determining the actuarial value of the System's | 18 | | assets for fiscal years after June 30, 2008, any actuarial | 19 | | gains or losses from investment return incurred in a fiscal | 20 | | year shall be recognized in equal annual amounts over the | 21 | | 5-year period following that fiscal year. | 22 | | (k) For purposes of determining the required State | 23 | | contribution to the system for a particular year, the actuarial | 24 | | value of assets shall be assumed to earn a rate of return equal | 25 | | to the system's actuarially assumed rate of return. | 26 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; |
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| 1 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 2 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)".
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