Full Text of HB1165 98th General Assembly
HB1165ham003 98TH GENERAL ASSEMBLY | Rep. Jay Hoffman Filed: 3/1/2013
| | 09800HB1165ham003 | | LRB098 08854 EFG 41971 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 1165
| 2 | | AMENDMENT NO. ______. Amend House Bill 1165, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Budget Stabilization Act is amended by | 6 | | changing Sections 20 and 25 as follows: | 7 | | (30 ILCS 122/20) | 8 | | Sec. 20. Pension Stabilization Fund. | 9 | | (a) The Pension Stabilization Fund is hereby created as a | 10 | | special fund in the State treasury. Moneys in the fund shall be | 11 | | used for the sole purpose of making payments to the designated | 12 | | retirement systems as provided in Section 25.
| 13 | | (b) For each fiscal year when the General Assembly's
| 14 | | appropriations and transfers or diversions as required by law
| 15 | | from general funds do not exceed 99% of the
estimated general | 16 | | funds revenues pursuant to subsection (a)
of Section 10, the |
| | | 09800HB1165ham003 | - 2 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Comptroller shall transfer from the
General Revenue Fund as | 2 | | provided by this Section a total
amount equal to 0.5% of the | 3 | | estimated general funds revenues
to the Pension Stabilization | 4 | | Fund. | 5 | | (c) For each fiscal year through Fiscal Year 2013 when the | 6 | | General Assembly's
appropriations and transfers or diversions | 7 | | as required by law
from general funds do not exceed 98% of the
| 8 | | estimated general funds revenues pursuant to subsection (b)
of | 9 | | Section 10, the Comptroller shall transfer from the
General | 10 | | Revenue Fund as provided by this Section a total
amount equal | 11 | | to 1.0% of the estimated general funds revenues
to the Pension | 12 | | Stabilization Fund. | 13 | | (c-5) In Fiscal Year 2016 and each fiscal year thereafter, | 14 | | the State Comptroller shall order transferred and the State | 15 | | Treasurer shall transfer the following amounts from the General | 16 | | Revenue Fund to the Pension Stabilization Fund: | 17 | | in Fiscal Year 2016, $441,429,372; | 18 | | in Fiscal Year 2017, $150,545,372; | 19 | | in Fiscal Year 2018, $179,267,872; | 20 | | in Fiscal Year 2019, $211,777,872; | 21 | | in Fiscal Year 2020, $1,123,333,372; | 22 | | in Fiscal Year 2021, $1,084,470,872; | 23 | | in Fiscal Year 2022, $1,048,083,372; | 24 | | in Fiscal Year 2023, $1,014,170,872; | 25 | | in Fiscal Year 2024, $957,733,372; | 26 | | in Fiscal Year 2025, $905,683,372; |
| | | 09800HB1165ham003 | - 3 - | LRB098 08854 EFG 41971 a |
|
| 1 | | in Fiscal Year 2026, $882,458,372; | 2 | | in Fiscal Year 2027, $861,783,372; | 3 | | in Fiscal Year 2028, $818,658,372; | 4 | | in Fiscal Year 2029, $779,358,372; | 5 | | in Fiscal Year 2030, $718,883,372; | 6 | | in Fiscal Year 2031, $663,508,372; | 7 | | in Fiscal Year 2032, $638,233,372; | 8 | | in Fiscal Year 2033, $641,783,372; | 9 | | in Fiscal Year 2034, $1,797,883,372; | 10 | | in Fiscal Year 2035, $1,797,883,372; | 11 | | in Fiscal Year 2036, $1,797,883,372; | 12 | | in Fiscal Year 2037, $1,797,883,372; | 13 | | in Fiscal Year 2038, $1,797,883,372; | 14 | | in Fiscal Year 2039, $1,797,883,372; | 15 | | in Fiscal Year 2040, $1,797,883,372; | 16 | | in Fiscal Year 2041, $1,797,883,372; | 17 | | in Fiscal Year 2042, $1,797,883,372; | 18 | | in Fiscal Year 2043, $1,797,883,372; | 19 | | in Fiscal Year 2044, $1,797,883,372; and | 20 | | in Fiscal Year 2045, $1,797,883,372. | 21 | | (c-10) The transfers made pursuant to subsection (c-5) of | 22 | | this Section shall continue until Fiscal Year 2045 or until | 23 | | each of the designated retirement systems, as defined in | 24 | | Section 25, has achieved a funding ratio of at least 100%, | 25 | | whichever occurs first. | 26 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
| | | 09800HB1165ham003 | - 4 - | LRB098 08854 EFG 41971 a |
|
| 1 | | to be transferred each fiscal year under this Section
into the | 2 | | Pension Stabilization Fund on the first day of each
month of | 3 | | that fiscal year or as soon thereafter as possible; except that | 4 | | the final transfer of the fiscal year shall be made as soon as | 5 | | practical after the August 31 following the end of the fiscal | 6 | | year. | 7 | | Until Fiscal Year 2014, before Before the final transfer | 8 | | for a fiscal year is made, the Comptroller shall reconcile the | 9 | | estimated general funds revenues used in calculating the other | 10 | | transfers under this Section for that fiscal year with the | 11 | | actual general funds revenues for that fiscal year. The
final | 12 | | transfer for the fiscal year shall be adjusted so that the
| 13 | | total amount transferred under this Section for that fiscal | 14 | | year is equal to the percentage specified in subsection
(b) or | 15 | | (c) of this Section, whichever is applicable, of the actual
| 16 | | general funds revenues for that fiscal year. The actual general | 17 | | funds revenues for the fiscal year shall be calculated in a | 18 | | manner consistent with subsection (c) of
Section 10 of this | 19 | | Act.
| 20 | | (Source: P.A. 94-839, eff. 6-6-06.) | 21 | | (30 ILCS 122/25)
| 22 | | Sec. 25. Transfers from the Pension Stabilization Fund. | 23 | | (a) As used in this Section, "designated retirement | 24 | | systems" means: | 25 | | (1) the State Employees' Retirement System of
|
| | | 09800HB1165ham003 | - 5 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Illinois; | 2 | | (2) the Teachers' Retirement System of the State of
| 3 | | Illinois; | 4 | | (3) the State Universities Retirement System; | 5 | | (4) the Judges Retirement System of Illinois; and | 6 | | (5) the General Assembly Retirement System. | 7 | | (b) As soon as may be practical after any money is | 8 | | deposited into the Pension Stabilization Fund, the State | 9 | | Comptroller shall apportion the deposited amount among the | 10 | | designated retirement systems and the State Comptroller and | 11 | | State Treasurer shall pay the apportioned amounts to the | 12 | | designated retirement systems. The amount deposited shall be | 13 | | apportioned among the designated retirement systems in | 14 | | proportion to their respective certified State contributions | 15 | | for the State fiscal year in which the payment is made to those | 16 | | systems in the same proportion as their respective portions of | 17 | | the
total actuarial reserve deficiency of the designated | 18 | | retirement systems, as most
recently determined by the | 19 | | Governor's Office of Management and
Budget . Amounts received by | 20 | | a designated retirement system under this Section shall be used | 21 | | for funding the unfunded liabilities of the retirement system. | 22 | | Payments under this Section are authorized by the continuing | 23 | | appropriation under Section 1.7 of the State Pension Funds | 24 | | Continuing Appropriation Act. | 25 | | (c) At the request of the State Comptroller, the Governor's | 26 | | Office of Management and Budget shall
determine the individual |
| | | 09800HB1165ham003 | - 6 - | LRB098 08854 EFG 41971 a |
|
| 1 | | and total actuarial reserve deficiencies of the
designated | 2 | | retirement systems. For this purpose, the
Governor's Office of | 3 | | Management and Budget shall consider the
latest available audit | 4 | | and actuarial reports of each of the
retirement systems and the | 5 | | relevant reports and statistics of
the Public Pension Division | 6 | | of the Department of
Financial and Professional Regulation. | 7 | | (d) Payments to the designated retirement systems under | 8 | | this Section shall be in addition to, and not in lieu of, any | 9 | | State contributions required under Section 2-124, 14-131, | 10 | | 15-155, 16-158, or 18-131 of the Illinois Pension Code.
| 11 | | (Source: P.A. 94-839, eff. 6-6-06.) | 12 | | Section 15. The Illinois Pension Code is amended by adding | 13 | | Sections 2-105.1, 2-105.2, 14-103.40, 14-103.41, 15-107.1, | 14 | | 15-107.2, 16-106.4, 16-106.5, and 16-158.2 and changing | 15 | | Sections 1-103.3, 2-124, 2-125, 2-126, 14-131, 14-132, 14-133, | 16 | | 15-136, 15-155, 15-156, 15-157, 16-133, 16-152, and 16-158 as | 17 | | follows:
| 18 | | (40 ILCS 5/1-103.3)
| 19 | | Sec. 1-103.3. Application of 1994 amendment; funding | 20 | | standard.
| 21 | | (a) The provisions of Public Act 88-593 this amendatory Act | 22 | | of 1994 that change the method of
calculating, certifying, and | 23 | | paying the required State contributions to the
retirement | 24 | | systems established under Articles 2, 14, 15, 16, and 18 shall
|
| | | 09800HB1165ham003 | - 7 - | LRB098 08854 EFG 41971 a |
|
| 1 | | first apply to the State contributions required for State | 2 | | fiscal year 1996.
| 3 | | (b) (Blank) The General Assembly declares that a funding | 4 | | ratio (the ratio of a
retirement system's total assets to its | 5 | | total actuarial liabilities) of 90% is
an appropriate goal for | 6 | | State-funded retirement systems in Illinois, and it
finds that | 7 | | a funding ratio of 90% is now the generally-recognized norm
| 8 | | throughout the nation for public employee retirement systems | 9 | | that are
considered to be financially secure and funded in an | 10 | | appropriate and
responsible manner .
| 11 | | (c) Every 5 years, beginning in 1999, the Commission on | 12 | | Government Forecasting and Accountability, in consultation | 13 | | with the affected retirement systems and the
Governor's Office | 14 | | of Management and Budget (formerly
Bureau
of the Budget), shall | 15 | | consider and determine whether the funding goals 90% funding | 16 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | 17 | | continue subsection (b) continues to represent an appropriate | 18 | | funding goals goal for
those State-funded retirement systems in | 19 | | Illinois , and it shall report its findings
and recommendations | 20 | | on this subject to the Governor and the General Assembly.
| 21 | | (Source: P.A. 93-1067, eff. 1-15-05.)
| 22 | | (40 ILCS 5/2-105.1 new) | 23 | | Sec. 2-105.1. Tier I participant. "Tier I participant": A | 24 | | participant who first became a participant before January 1, | 25 | | 2011 and who is not a Tier I retiree. |
| | | 09800HB1165ham003 | - 8 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (40 ILCS 5/2-105.2 new) | 2 | | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | 3 | | former Tier I participant who is receiving a retirement | 4 | | annuity.
| 5 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 6 | | Sec. 2-124. Contributions by State.
| 7 | | (a) The State shall make contributions to the System by
| 8 | | appropriations of amounts which, together with the | 9 | | contributions of
participants, interest earned on investments, | 10 | | and other income
will meet the cost of maintaining and | 11 | | administering the System on a 100% 90%
funded basis in | 12 | | accordance with actuarial recommendations.
| 13 | | (b) The Board shall determine the amount of State
| 14 | | contributions required for each fiscal year on the basis of the
| 15 | | actuarial tables and other assumptions adopted by the Board and | 16 | | the
prescribed rate of interest, using the formula in | 17 | | subsection (c).
| 18 | | (c) For State fiscal years 2015 through 2045, the minimum | 19 | | contribution
to the System to be made by the State for each | 20 | | fiscal year shall be an amount
determined by the System to be | 21 | | sufficient to bring the total assets of the
System up to 100% | 22 | | of the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2045. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a |
| | | 09800HB1165ham003 | - 9 - | LRB098 08854 EFG 41971 a |
|
| 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 2012 through 2014 2045 , the minimum | 5 | | contribution
to the System to be made by the State for each | 6 | | fiscal year shall be an amount
determined by the System to be | 7 | | sufficient to bring the total assets of the
System up to 90% of | 8 | | the total actuarial liabilities of the System by the end of
| 9 | | State fiscal year 2045. In making these determinations, the | 10 | | required State
contribution shall be calculated each year as a | 11 | | level percentage of payroll
over the years remaining to and | 12 | | including fiscal year 2045 and shall be
determined under the | 13 | | projected unit credit actuarial cost method.
| 14 | | For State fiscal years 1996 through 2005, the State | 15 | | contribution to
the System, as a percentage of the applicable | 16 | | employee payroll, shall be
increased in equal annual increments | 17 | | so that by State fiscal year 2011, the
State is contributing at | 18 | | the rate required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State
contribution for State fiscal year 2006 is | 21 | | $4,157,000.
| 22 | | Notwithstanding any other provision of this Article, the | 23 | | total required State
contribution for State fiscal year 2007 is | 24 | | $5,220,300.
| 25 | | For each of State fiscal years 2008 through 2009, the State | 26 | | contribution to
the System, as a percentage of the applicable |
| | | 09800HB1165ham003 | - 10 - | LRB098 08854 EFG 41971 a |
|
| 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 | | $10,454,000 and shall be made from the proceeds of bonds sold | 8 | | 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 General Revenue | 12 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 13 | | proceeds due to the issuance of discounted bonds, if | 14 | | applicable. | 15 | | Notwithstanding any other provision of this Article, the
| 16 | | total required State contribution for State fiscal year 2011 is
| 17 | | the amount recertified by the System on or before April 1, 2011 | 18 | | pursuant to Section 2-134 and shall be made from the proceeds | 19 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 20 | | the General
Obligation Bond Act, less (i) the pro rata share of | 21 | | bond sale
expenses determined by the System's share of total | 22 | | bond
proceeds, (ii) any amounts received from the General | 23 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 24 | | bond
proceeds due to the issuance of discounted bonds, if
| 25 | | applicable. | 26 | | Beginning in State fiscal year 2046, the minimum State |
| | | 09800HB1165ham003 | - 11 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contribution for
each fiscal year shall be the amount needed to | 2 | | maintain the total assets of
the System at 100% 90% of the | 3 | | total actuarial liabilities of the System.
| 4 | | Amounts received by the System pursuant to Section 25 of | 5 | | the Budget Stabilization Act or Section 8.12 of the State | 6 | | Finance Act in any fiscal year do not reduce and do not | 7 | | constitute payment of any portion of the minimum State | 8 | | contribution required under this Article in that fiscal year. | 9 | | Such amounts shall not reduce, and shall not be included in the | 10 | | calculation of, the required State contributions under this | 11 | | Article in any future year until the System has reached a | 12 | | funding ratio of at least 80% 90% . A reference in this Article | 13 | | to the "required State contribution" or any substantially | 14 | | similar term does not include or apply to any amounts payable | 15 | | to the System under Section 25 of the Budget Stabilization Act.
| 16 | | Notwithstanding any other provision of this Code or the | 17 | | Budget Stabilization Act, amounts transferred to the System | 18 | | pursuant to the Budget Stabilization Act after the effective | 19 | | date of this amendatory Act of the 98th General Assembly do not | 20 | | reduce and do not constitute payment of any portion of the | 21 | | required State contribution under this Article in that fiscal | 22 | | year. Such amounts shall not reduce, and shall not be included | 23 | | in the calculation of, the required State contributions under | 24 | | this Article in any future year until the System has received | 25 | | payment of contributions pursuant to the Budget Stabilization | 26 | | Act. |
| | | 09800HB1165ham003 | - 12 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Notwithstanding any other provision of this Section, the | 2 | | required State
contribution for State fiscal year 2005 and for | 3 | | fiscal year 2008 and each fiscal year thereafter through State | 4 | | fiscal year 2014 , as
calculated under this Section and
| 5 | | certified under Section 2-134, shall not exceed an amount equal | 6 | | to (i) the
amount of the required State contribution that would | 7 | | have been calculated under
this Section for that fiscal year if | 8 | | the System had not received any payments
under subsection (d) | 9 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | 10 | | the portion of the State's total debt service payments for that | 11 | | fiscal
year on the bonds issued in fiscal year 2003 for the | 12 | | purposes of that Section 7.2, as determined
and certified by | 13 | | the Comptroller, that is the same as the System's portion of
| 14 | | the total moneys distributed under subsection (d) of Section | 15 | | 7.2 of the General
Obligation Bond Act. In determining this | 16 | | maximum for State fiscal years 2008 through 2010, however, the | 17 | | amount referred to in item (i) shall be increased, as a | 18 | | percentage of the applicable employee payroll, in equal | 19 | | increments calculated from the sum of the required State | 20 | | contribution for State fiscal year 2007 plus the applicable | 21 | | portion of the State's total debt service payments for fiscal | 22 | | year 2007 on the bonds issued in fiscal year 2003 for the | 23 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 24 | | that, by State fiscal year 2011, the
State is contributing at | 25 | | the rate otherwise required under this Section.
| 26 | | (d) For purposes of determining the required State |
| | | 09800HB1165ham003 | - 13 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contribution to the System, the value of the System's assets | 2 | | shall be equal to the actuarial value of the System's assets, | 3 | | which shall be calculated as follows: | 4 | | As of June 30, 2008, the actuarial value of the System's | 5 | | assets shall be equal to the market value of the assets as of | 6 | | that date. In determining the actuarial value of the System's | 7 | | assets for fiscal years after June 30, 2008, any actuarial | 8 | | gains or losses from investment return incurred in a fiscal | 9 | | year shall be recognized in equal annual amounts over the | 10 | | 5-year period following that fiscal year. | 11 | | (e) For purposes of determining the required State | 12 | | contribution to the system for a particular year, the actuarial | 13 | | value of assets shall be assumed to earn a rate of return equal | 14 | | to the system's actuarially assumed rate of return. | 15 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 16 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 17 | | 7-13-12.)
| 18 | | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
| 19 | | Sec. 2-125. Obligations of State ; funding guarantee . | 20 | | (a) The payment of (1) the required State contributions, | 21 | | (2) all benefits
granted under this system and (3) all expenses | 22 | | of administration and
operation are obligations of the State to | 23 | | the extent specified in this
Article.
| 24 | | (b) All income, interest and dividends derived from | 25 | | deposits and investments
shall be credited to the account of |
| | | 09800HB1165ham003 | - 14 - | LRB098 08854 EFG 41971 a |
|
| 1 | | the system in the State Treasury and
used to pay benefits under | 2 | | this Article.
| 3 | | (c) Pursuant to Article XIII, Section 5 of the 1970 | 4 | | Constitution of the State of Illinois, beginning on July 1, | 5 | | 2013, the State shall, as a retirement benefit to each | 6 | | participant and annuitant of the System be contractually | 7 | | obligated to the System (as a fiduciary and trustee of the | 8 | | participants and annuitants) to pay the annual required State | 9 | | contribution, as determined by the Board of the System using | 10 | | generally accepted actuarial principles, as is necessary to | 11 | | bring the total assets of the System up to 100% of the total | 12 | | actuarial liabilities of the System by the end of State fiscal | 13 | | year 2045. As a further retirement benefit and contractual | 14 | | obligation, each fiscal year, the State shall pay to each | 15 | | designated retirement system the annual required State | 16 | | contribution certified by the Board for that fiscal year. | 17 | | Payments of the annual required State contribution for each | 18 | | fiscal year shall be made in equal monthly installments. | 19 | | Additionally, beginning in fiscal year 2014, State transfers to | 20 | | the Pension Stabilization Fund pursuant to Section 20 of the | 21 | | Budget Stabilization Act and payments to the System pursuant to | 22 | | Section 25 of the Budget Stabilization Act shall be further | 23 | | retirement benefits and contractual obligations. The transfers | 24 | | and payments prescribed in Sections 20 and 25 of the Budget | 25 | | Stabilization Act shall not be used by the retirement system | 26 | | when calculation any pension payment until the System has |
| | | 09800HB1165ham003 | - 15 - | LRB098 08854 EFG 41971 a |
|
| 1 | | reached a funded level of 100%. This Section and the security | 2 | | it provides to participants and annuitants is intended to be, | 3 | | and is, a contractual right that is part of the pension | 4 | | benefits provided to the participants and annuitants. | 5 | | Notwithstanding anything to the contrary in the Court of Claims | 6 | | Act or any other law, a designated retirement system has the | 7 | | exclusive right to and shall bring a mandamus action in the | 8 | | Circuit Court of Sangamon County against the State to compel | 9 | | the State to make any installment of the annual required State | 10 | | contribution required by this Section, irrespective of other | 11 | | remedies that may be available to the System. Each member or | 12 | | annuitant of the System has the right to in any judicial | 13 | | district in which the System maintains an office if the System | 14 | | fails to bring an action specified in this Section, | 15 | | irrespective of other remedies that may be available to the | 16 | | member or annuitant. In making these determinations, the | 17 | | required State contribution shall be calculated each year as a | 18 | | level percentage of payroll over the years remaining to and | 19 | | including fiscal year 2045 and shall be determined under the | 20 | | projected unit credit actuarial cost method. | 21 | | (Source: P.A. 83-1440.)
| 22 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 23 | | Sec. 2-126. Contributions by participants.
| 24 | | (a) Each participant shall contribute toward the cost of | 25 | | his or her
retirement annuity a percentage of each payment of |
| | | 09800HB1165ham003 | - 16 - | LRB098 08854 EFG 41971 a |
|
| 1 | | salary received by him or
her for service as a member as | 2 | | follows: for service between October 31, 1947
and January 1, | 3 | | 1959, 5%; for service between January 1, 1959 and June 30, | 4 | | 1969,
6%; for service between July 1, 1969 and January 10, | 5 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 6 | | service after December 31, 1981, 8 1/2%.
| 7 | | (a-5) In addition to the contributions otherwise required | 8 | | under this Article, each Tier I participant shall also make the | 9 | | following contributions toward the cost of his or her | 10 | | retirement annuity from each payment
of salary received by him | 11 | | or her for service as a member: | 12 | | (1) beginning July 1, 2013 and through June 30, 2014, | 13 | | 1% of salary; and | 14 | | (2) beginning on July 1, 2014, 2% of salary. | 15 | | (b) Beginning August 2, 1949, each male participant, and | 16 | | from July 1,
1971, each female participant shall contribute | 17 | | towards the cost of the
survivor's annuity 2% of salary.
| 18 | | A participant who has no eligible survivor's annuity | 19 | | beneficiary may elect
to cease making contributions for | 20 | | survivor's annuity under this subsection.
A survivor's annuity | 21 | | shall not be payable upon the death of a person who has
made | 22 | | this election, unless prior to that death the election has been | 23 | | revoked
and the amount of the contributions that would have | 24 | | been paid under this
subsection in the absence of the election | 25 | | is paid to the System, together
with interest at the rate of 4% | 26 | | per year from the date the contributions
would have been made |
| | | 09800HB1165ham003 | - 17 - | LRB098 08854 EFG 41971 a |
|
| 1 | | to the date of payment.
| 2 | | (c) Beginning July 1, 1967, each participant shall | 3 | | contribute 1% of
salary towards the cost of automatic increase | 4 | | in annuity provided in
Section 2-119.1. These contributions | 5 | | shall be made concurrently with
contributions for retirement | 6 | | annuity purposes.
| 7 | | (d) In addition, each participant serving as an officer of | 8 | | the General
Assembly shall contribute, for the same purposes | 9 | | and at the same rates
as are required of a regular participant, | 10 | | on each additional payment
received as an officer. If the | 11 | | participant serves as an
officer for at least 2 but less than 4 | 12 | | years, he or she shall
contribute an amount equal to the amount | 13 | | that would have been contributed
had the participant served as | 14 | | an officer for 4 years. Persons who serve
as officers in the | 15 | | 87th General Assembly but cannot receive the additional
payment | 16 | | to officers because of the ban on increases in salary during | 17 | | their
terms may nonetheless make contributions based on those | 18 | | additional payments
for the purpose of having the additional | 19 | | payments included in their highest
salary for annuity purposes; | 20 | | however, persons electing to make these
additional | 21 | | contributions must also pay an amount representing the
| 22 | | corresponding employer contributions, as calculated by the | 23 | | System.
| 24 | | (e) Notwithstanding any other provision of this Article, | 25 | | the required contribution of a participant who first becomes a | 26 | | participant on or after January 1, 2011 shall not exceed the |
| | | 09800HB1165ham003 | - 18 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contribution that would be due under this Article if that | 2 | | participant's highest salary for annuity purposes were | 3 | | $106,800, plus any increases in that amount under Section | 4 | | 2-108.1. | 5 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 6 | | (40 ILCS 5/14-103.40 new) | 7 | | Sec. 14-103.40. Tier I member. "Tier I member": A member of | 8 | | this System who first became a member or participant before | 9 | | January 1, 2011 under any reciprocal retirement system or | 10 | | pension fund established under this Code other than a | 11 | | retirement system or pension fund established under Article 2, | 12 | | 3, 4, 5, 6, or 18 of this Code and who is not a Tier I retiree. | 13 | | (40 ILCS 5/14-103.41 new) | 14 | | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former | 15 | | Tier I member who is receiving a retirement annuity.
| 16 | | (40 ILCS 5/14-131)
| 17 | | Sec. 14-131. Contributions by State.
| 18 | | (a) The State shall make contributions to the System by | 19 | | appropriations of
amounts which, together with other employer | 20 | | contributions from trust, federal,
and other funds, employee | 21 | | contributions, investment income, and other income,
will be | 22 | | sufficient to meet the cost of maintaining and administering | 23 | | the System
on a 100% 90% funded basis in accordance with |
| | | 09800HB1165ham003 | - 19 - | LRB098 08854 EFG 41971 a |
|
| 1 | | actuarial recommendations.
| 2 | | For the purposes of this Section and Section 14-135.08, | 3 | | references to State
contributions refer only to employer | 4 | | contributions and do not include employee
contributions that | 5 | | are picked up or otherwise paid by the State or a
department on | 6 | | behalf of the employee.
| 7 | | (b) The Board shall determine the total amount of State | 8 | | contributions
required for each fiscal year on the basis of the | 9 | | actuarial tables and other
assumptions adopted by the Board, | 10 | | using the formula in subsection (e).
| 11 | | The Board shall also determine a State contribution rate | 12 | | for each fiscal
year, expressed as a percentage of payroll, | 13 | | based on the total required State
contribution for that fiscal | 14 | | year (less the amount received by the System from
| 15 | | appropriations under Section 8.12 of the State Finance Act and | 16 | | Section 1 of the
State Pension Funds Continuing Appropriation | 17 | | Act, if any, for the fiscal year
ending on the June 30 | 18 | | immediately preceding the applicable November 15
certification | 19 | | deadline), the estimated payroll (including all forms of
| 20 | | compensation) for personal services rendered by eligible | 21 | | employees, and the
recommendations of the actuary.
| 22 | | For the purposes of this Section and Section 14.1 of the | 23 | | State Finance Act,
the term "eligible employees" includes | 24 | | employees who participate in the System,
persons who may elect | 25 | | to participate in the System but have not so elected,
persons | 26 | | who are serving a qualifying period that is required for |
| | | 09800HB1165ham003 | - 20 - | LRB098 08854 EFG 41971 a |
|
| 1 | | participation,
and annuitants employed by a department as | 2 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 3 | | (c) Contributions shall be made by the several departments | 4 | | for each pay
period by warrants drawn by the State Comptroller | 5 | | against their respective
funds or appropriations based upon | 6 | | vouchers stating the amount to be so
contributed. These amounts | 7 | | shall be based on the full rate certified by the
Board under | 8 | | Section 14-135.08 for that fiscal year.
From the effective date | 9 | | of this amendatory Act of the 93rd General
Assembly through the | 10 | | payment of the final payroll from fiscal year 2004
| 11 | | appropriations, the several departments shall not make | 12 | | contributions
for the remainder of fiscal year 2004 but shall | 13 | | instead make payments
as required under subsection (a-1) of | 14 | | Section 14.1 of the State Finance Act.
The several departments | 15 | | shall resume those contributions at the commencement of
fiscal | 16 | | year 2005.
| 17 | | (c-1) Notwithstanding subsection (c) of this Section, for | 18 | | fiscal years 2010, 2012, and 2013 only, contributions by the | 19 | | several departments are not required to be made for General | 20 | | Revenue Funds payrolls processed by the Comptroller. Payrolls | 21 | | paid by the several departments from all other State funds must | 22 | | continue to be processed pursuant to subsection (c) of this | 23 | | Section. | 24 | | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | 25 | | or as soon as possible after the 15th day of each month, the | 26 | | Board shall submit vouchers for payment of State contributions |
| | | 09800HB1165ham003 | - 21 - | LRB098 08854 EFG 41971 a |
|
| 1 | | to the System, in a total monthly amount of one-twelfth of the | 2 | | fiscal year General Revenue Fund contribution as certified by | 3 | | the System pursuant to Section 14-135.08 of the Illinois | 4 | | Pension Code. | 5 | | (d) If an employee is paid from trust funds or federal | 6 | | funds, the
department or other employer shall pay employer | 7 | | contributions from those funds
to the System at the certified | 8 | | rate, unless the terms of the trust or the
federal-State | 9 | | agreement preclude the use of the funds for that purpose, in
| 10 | | which case the required employer contributions shall be paid by | 11 | | the State.
From the effective date of this amendatory
Act of | 12 | | the 93rd General Assembly through the payment of the final
| 13 | | payroll from fiscal year 2004 appropriations, the department or | 14 | | other
employer shall not pay contributions for the remainder of | 15 | | fiscal year
2004 but shall instead make payments as required | 16 | | under subsection (a-1) of
Section 14.1 of the State Finance | 17 | | Act. The department or other employer shall
resume payment of
| 18 | | contributions at the commencement of fiscal year 2005.
| 19 | | (e) For State fiscal years 2015 through 2045, the minimum | 20 | | contribution
to the System to be made by the State for each | 21 | | fiscal year shall be an amount
determined by the System to be | 22 | | sufficient to bring the total assets of the
System up to 100% | 23 | | of the total actuarial liabilities of the System by the end of
| 24 | | State fiscal year 2045. In making these determinations, the | 25 | | required State
contribution shall be calculated each year as a | 26 | | level percentage of payroll
over the years remaining to and |
| | | 09800HB1165ham003 | - 22 - | LRB098 08854 EFG 41971 a |
|
| 1 | | including fiscal year 2045 and shall be
determined under the | 2 | | projected unit credit actuarial cost method. | 3 | | For State fiscal years 2012 through 2014 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
(i) for State | 18 | | fiscal year 1998, for all purposes of this Code and any other
| 19 | | law of this State, the certified percentage of the applicable | 20 | | employee payroll
shall be 5.052% for employees earning eligible | 21 | | creditable service under Section
14-110 and 6.500% for all | 22 | | other employees, notwithstanding any contrary
certification | 23 | | made under Section 14-135.08 before the effective date of this
| 24 | | amendatory Act of 1997, and (ii)
in the following specified | 25 | | State fiscal years, the State contribution to
the System shall | 26 | | not be less than the following indicated percentages of the
|
| | | 09800HB1165ham003 | - 23 - | LRB098 08854 EFG 41971 a |
|
| 1 | | applicable employee payroll, even if the indicated percentage | 2 | | will produce a
State contribution in excess of the amount | 3 | | otherwise required under this
subsection and subsection (a):
| 4 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 5 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 6 | | Notwithstanding any other provision of this Article, the | 7 | | total required State
contribution to the System for State | 8 | | fiscal year 2006 is $203,783,900.
| 9 | | Notwithstanding any other provision of this Article, the | 10 | | total required State
contribution to the System for State | 11 | | fiscal year 2007 is $344,164,400.
| 12 | | For each of State fiscal years 2008 through 2009, the State | 13 | | contribution to
the System, as a percentage of the applicable | 14 | | employee payroll, shall be
increased in equal annual increments | 15 | | from the required State contribution for State fiscal year | 16 | | 2007, so that by State fiscal year 2011, the
State is | 17 | | contributing at the rate otherwise required under this Section.
| 18 | | Notwithstanding any other provision of this Article, the | 19 | | total required State General Revenue Fund contribution for | 20 | | State fiscal year 2010 is $723,703,100 and shall be made from | 21 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 22 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 23 | | pro rata share of bond sale expenses determined by the System's | 24 | | share of total bond proceeds, (ii) any amounts received from | 25 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 26 | | reduction in bond proceeds due to the issuance of discounted |
| | | 09800HB1165ham003 | - 24 - | LRB098 08854 EFG 41971 a |
|
| 1 | | bonds, if applicable. | 2 | | Notwithstanding any other provision of this Article, the
| 3 | | total required State General Revenue Fund contribution for
| 4 | | State fiscal year 2011 is the amount recertified by the System | 5 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 6 | | shall be made from
the proceeds of bonds sold in fiscal year | 7 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 8 | | Act, less (i) the
pro rata share of bond sale expenses | 9 | | determined by the System's
share of total bond proceeds, (ii) | 10 | | any amounts received from
the General Revenue Fund in fiscal | 11 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 12 | | issuance of discounted
bonds, if applicable. | 13 | | Beginning in State fiscal year 2046, the minimum State | 14 | | contribution for
each fiscal year shall be the amount needed to | 15 | | maintain the total assets of
the System at 90% of the total | 16 | | actuarial liabilities of the System.
| 17 | | Amounts received by the System pursuant to Section 25 of | 18 | | the Budget Stabilization Act or Section 8.12 of the State | 19 | | Finance Act in any fiscal year do not reduce and do not | 20 | | constitute payment of any portion of the minimum State | 21 | | contribution required under this Article in that fiscal year. | 22 | | Such amounts shall not reduce, and shall not be included in the | 23 | | calculation of, the required State contributions under this | 24 | | Article in any future year until the System has reached a | 25 | | funding ratio of at least 100% 90% . A reference in this Article | 26 | | to the "required State contribution" or any substantially |
| | | 09800HB1165ham003 | - 25 - | LRB098 08854 EFG 41971 a |
|
| 1 | | similar term does not include or apply to any amounts payable | 2 | | to the System under Section 25 of the Budget Stabilization Act.
| 3 | | Notwithstanding any other provision of this Code or the | 4 | | Budget Stabilization Act, amounts transferred to the System | 5 | | pursuant to the Budget Stabilization Act after the effective | 6 | | date of this amendatory Act of the 98th General Assembly do not | 7 | | reduce and do not constitute payment of any portion of the | 8 | | required State contribution under this Article in that fiscal | 9 | | year. Such amounts shall not reduce, and shall not be included | 10 | | in the calculation of, the required State contributions under | 11 | | this Article in any future year until the System has received | 12 | | payment of contributions pursuant to the Budget Stabilization | 13 | | Act. | 14 | | Notwithstanding any other provision of this Section, the | 15 | | required State
contribution for State fiscal year 2005 and for | 16 | | fiscal year 2008 and each fiscal year thereafter through State | 17 | | fiscal year 2014 , as
calculated under this Section and
| 18 | | certified under Section 14-135.08, shall not exceed an amount | 19 | | equal to (i) the
amount of the required State contribution that | 20 | | would have been calculated under
this Section for that fiscal | 21 | | year if the System had not received any payments
under | 22 | | subsection (d) of Section 7.2 of the General Obligation Bond | 23 | | Act, minus
(ii) the portion of the State's total debt service | 24 | | payments for that fiscal
year on the bonds issued in fiscal | 25 | | year 2003 for the purposes of that Section 7.2, as determined
| 26 | | and certified by the Comptroller, that is the same as the |
| | | 09800HB1165ham003 | - 26 - | LRB098 08854 EFG 41971 a |
|
| 1 | | System's portion of
the total moneys distributed under | 2 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 3 | | Act. In determining this maximum for State fiscal years 2008 | 4 | | through 2010, however, the amount referred to in item (i) shall | 5 | | be increased, as a percentage of the applicable employee | 6 | | payroll, in equal increments calculated from the sum of the | 7 | | required State contribution for State fiscal year 2007 plus the | 8 | | applicable portion of the State's total debt service payments | 9 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 10 | | for the purposes of Section 7.2 of the General
Obligation Bond | 11 | | Act, so that, by State fiscal year 2011, the
State is | 12 | | contributing at the rate otherwise required under this Section.
| 13 | | (f) After the submission of all payments for eligible | 14 | | employees
from personal services line items in fiscal year 2004 | 15 | | have been made,
the Comptroller shall provide to the System a | 16 | | certification of the sum
of all fiscal year 2004 expenditures | 17 | | for personal services that would
have been covered by payments | 18 | | to the System under this Section if the
provisions of this | 19 | | amendatory Act of the 93rd General Assembly had not been
| 20 | | enacted. Upon
receipt of the certification, the System shall | 21 | | determine the amount
due to the System based on the full rate | 22 | | certified by the Board under
Section 14-135.08 for fiscal year | 23 | | 2004 in order to meet the State's
obligation under this | 24 | | Section. The System shall compare this amount
due to the amount | 25 | | received by the System in fiscal year 2004 through
payments | 26 | | under this Section and under Section 6z-61 of the State Finance |
| | | 09800HB1165ham003 | - 27 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Act.
If the amount
due is more than the amount received, the | 2 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 3 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 4 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 5 | | Continuing Appropriation Act. If the amount due is less than | 6 | | the
amount received, the
difference shall be termed the "Fiscal | 7 | | Year 2004 Overpayment" for purposes of
this Section, and the | 8 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 9 | | the Pension Contribution Fund as soon as practicable
after the | 10 | | certification.
| 11 | | (g) 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 | | (h) 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 | | (i) After the submission of all payments for eligible |
| | | 09800HB1165ham003 | - 28 - | LRB098 08854 EFG 41971 a |
|
| 1 | | employees from personal services line items paid from the | 2 | | General Revenue Fund in fiscal year 2010 have been made, the | 3 | | Comptroller shall provide to the System a certification of the | 4 | | sum of all fiscal year 2010 expenditures for personal services | 5 | | that would have been covered by payments to the System under | 6 | | this Section if the provisions of this amendatory Act of the | 7 | | 96th General Assembly had not been enacted. Upon receipt of the | 8 | | certification, the System shall determine the amount due to the | 9 | | System based on the full rate certified by the Board under | 10 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 11 | | State's obligation under this Section. The System shall compare | 12 | | this amount due to the amount received by the System in fiscal | 13 | | year 2010 through payments under this Section. If the amount | 14 | | due is more than the amount received, the difference shall be | 15 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 16 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 17 | | under Section 1.2 of the State Pension Funds Continuing | 18 | | Appropriation Act. If the amount due is less than the amount | 19 | | received, the difference shall be termed the "Fiscal Year 2010 | 20 | | Overpayment" for purposes of this Section, and the Fiscal Year | 21 | | 2010 Overpayment shall be repaid by the System to the General | 22 | | Revenue Fund as soon as practicable after the certification. | 23 | | (j) After the submission of all payments for eligible | 24 | | employees from personal services line items paid from the | 25 | | General Revenue Fund in fiscal year 2011 have been made, the | 26 | | Comptroller shall provide to the System a certification of the |
| | | 09800HB1165ham003 | - 29 - | LRB098 08854 EFG 41971 a |
|
| 1 | | sum of all fiscal year 2011 expenditures for personal services | 2 | | that would have been covered by payments to the System under | 3 | | this Section if the provisions of this amendatory Act of the | 4 | | 96th General Assembly had not been enacted. Upon receipt of the | 5 | | certification, the System shall determine the amount due to the | 6 | | System based on the full rate certified by the Board under | 7 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 8 | | State's obligation under this Section. The System shall compare | 9 | | this amount due to the amount received by the System in fiscal | 10 | | year 2011 through payments under this Section. If the amount | 11 | | due is more than the amount received, the difference shall be | 12 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 13 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 14 | | under Section 1.2 of the State Pension Funds Continuing | 15 | | Appropriation Act. If the amount due is less than the amount | 16 | | received, the difference shall be termed the "Fiscal Year 2011 | 17 | | Overpayment" for purposes of this Section, and the Fiscal Year | 18 | | 2011 Overpayment shall be repaid by the System to the General | 19 | | Revenue Fund as soon as practicable after the certification. | 20 | | (k) For fiscal years 2012 and 2013 only, after the | 21 | | submission of all payments for eligible employees from personal | 22 | | services line items paid from the General Revenue Fund in the | 23 | | fiscal year have been made, the Comptroller shall provide to | 24 | | the System a certification of the sum of all expenditures in | 25 | | the fiscal year for personal services. Upon receipt of the | 26 | | certification, the System shall determine the amount due to the |
| | | 09800HB1165ham003 | - 30 - | LRB098 08854 EFG 41971 a |
|
| 1 | | System based on the full rate certified by the Board under | 2 | | Section 14-135.08 for the fiscal year in order to meet the | 3 | | State's obligation under this Section. The System shall compare | 4 | | this amount due to the amount received by the System for the | 5 | | fiscal year. If the amount due is more than the amount | 6 | | received, the difference shall be termed the "Prior Fiscal Year | 7 | | Shortfall" for purposes of this Section, and the Prior Fiscal | 8 | | Year Shortfall shall be satisfied under Section 1.2 of the | 9 | | State Pension Funds Continuing Appropriation Act. If the amount | 10 | | due is less than the amount received, the difference shall be | 11 | | termed the "Prior Fiscal Year Overpayment" for purposes of this | 12 | | Section, and the Prior Fiscal Year Overpayment shall be repaid | 13 | | by the System to the General Revenue Fund as soon as | 14 | | practicable after the certification. | 15 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | 16 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | 17 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | 18 | | eff. 6-30-12.)
| 19 | | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| 20 | | Sec. 14-132. Obligations of State ; funding guarantee . | 21 | | (a) The payment of the required department
contributions, | 22 | | all allowances,
annuities, benefits granted under this | 23 | | Article, and all expenses of
administration of the system are | 24 | | obligations of the State of Illinois to
the extent specified in | 25 | | this Article.
|
| | | 09800HB1165ham003 | - 31 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (b) All income of the system
shall be credited to a | 2 | | separate account for this system in the State
treasury and | 3 | | shall be used to pay allowances, annuities, benefits and
| 4 | | administration expense.
| 5 | | (c) Pursuant to Article XIII, Section 5 of the 1970 | 6 | | Constitution of the State of Illinois, beginning on July 1, | 7 | | 2013, the State shall, as a retirement benefit to each | 8 | | participant and annuitant of the System be contractually | 9 | | obligated to the System (as a fiduciary and trustee of the | 10 | | participants and annuitants) to pay the annual required State | 11 | | contribution, as determined by the Board of the System using | 12 | | generally accepted actuarial principles, as is necessary to | 13 | | bring the total assets of the System up to 100% of the total | 14 | | actuarial liabilities of the System by the end of State fiscal | 15 | | year 2045. As a further retirement benefit and contractual | 16 | | obligation, each fiscal year, the State shall pay to each | 17 | | designated retirement system the annual required State | 18 | | contribution certified by the Board for that fiscal year. | 19 | | Payments of the annual required State contribution for each | 20 | | fiscal year shall be made in equal monthly installments. | 21 | | Additionally, beginning in fiscal year 2014, State transfers to | 22 | | the Pension Stabilization Fund pursuant to Section 20 of the | 23 | | Budget Stabilization Act and payments to the System pursuant to | 24 | | Section 25 of the Budget Stabilization Act shall be further | 25 | | retirement benefits and contractual obligations. The transfers | 26 | | and payments prescribed in Sections 20 and 25 of the Budget |
| | | 09800HB1165ham003 | - 32 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Stabilization Act shall not be used by the retirement system | 2 | | when calculation any pension payment until the System has | 3 | | reached a funded level of 100%. This Section and the security | 4 | | it provides to participants and annuitants is intended to be, | 5 | | and is, a contractual right that is part of the pension | 6 | | benefits provided to the participants and annuitants. | 7 | | Notwithstanding anything to the contrary in the Court of Claims | 8 | | Act or any other law, a designated retirement system has the | 9 | | exclusive right to and shall bring a mandamus action in the | 10 | | Circuit Court of Sangamon County against the State to compel | 11 | | the State to make any installment of the annual required State | 12 | | contribution required by this Section, irrespective of other | 13 | | remedies that may be available to the System. Each member or | 14 | | annuitant of the System has the right to in any judicial | 15 | | district in which the System maintains an office if the System | 16 | | fails to bring an action specified in this Section, | 17 | | irrespective of other remedies that may be available to the | 18 | | member or annuitant. In making these determinations, the | 19 | | required State contribution shall be calculated each year as a | 20 | | level percentage of payroll over the years remaining to and | 21 | | including fiscal year 2045 and shall be determined under the | 22 | | projected unit credit actuarial cost method. | 23 | | (Source: P.A. 80-841.)
| 24 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| 25 | | Sec. 14-133. Contributions on behalf of members.
|
| | | 09800HB1165ham003 | - 33 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (a) Each participating employee shall make contributions | 2 | | to the System,
based on the employee's compensation, as | 3 | | follows:
| 4 | | (1) Covered employees, except as indicated below, 3.5% | 5 | | for
retirement annuity, and 0.5% for a widow or survivors
| 6 | | annuity;
| 7 | | (2) Noncovered employees, except as indicated below, | 8 | | 7% for retirement
annuity and 1% for a widow or survivors | 9 | | annuity;
| 10 | | (3) Noncovered employees serving in a position in which | 11 | | "eligible
creditable service" as defined in Section 14-110 | 12 | | may be earned, 1% for a widow
or survivors annuity
plus the | 13 | | following amount for retirement annuity: 8.5% through | 14 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 15 | | in 2004 and thereafter;
| 16 | | (4) Covered employees serving in a position in which | 17 | | "eligible creditable
service" as defined in Section 14-110 | 18 | | may be earned, 0.5% for a widow or survivors annuity
plus | 19 | | the following amount for retirement annuity: 5% through | 20 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 21 | | and thereafter;
| 22 | | (5) Each security employee of the Department of | 23 | | Corrections
or of the Department of Human Services who is a | 24 | | covered employee, 0.5% for a widow or survivors annuity
| 25 | | plus the following amount for retirement annuity: 5% | 26 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
| | | 09800HB1165ham003 | - 34 - | LRB098 08854 EFG 41971 a |
|
| 1 | | in 2004 and thereafter;
| 2 | | (6) Each security employee of the Department of | 3 | | Corrections
or of the Department of Human Services who is | 4 | | not a covered employee, 1% for a widow or survivors annuity
| 5 | | plus the following amount for retirement annuity: 8.5% | 6 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 7 | | 11.5% in 2004 and thereafter.
| 8 | | (a-5) In addition to the contributions otherwise required | 9 | | under this Article, each Tier I participant shall also make the | 10 | | following contributions toward the cost of his or her | 11 | | retirement annuity from each payment
of salary received by him | 12 | | or her for service as a member: | 13 | | (1) beginning July 1, 2013 and through June 30, 2014, | 14 | | 1% of compensation; and | 15 | | (2) beginning on July 1, 2014, 2% of compensation. | 16 | | (b) Contributions shall be in the form of a deduction from
| 17 | | compensation and shall be made notwithstanding that the | 18 | | compensation
paid in cash to the employee shall be reduced | 19 | | thereby below the minimum
prescribed by law or regulation. Each | 20 | | member is deemed to consent and
agree to the deductions from | 21 | | compensation provided for in this Article,
and shall receipt in | 22 | | full for salary or compensation.
| 23 | | (Source: P.A. 92-14, eff. 6-28-01.)
| 24 | | (40 ILCS 5/15-107.1 new) | 25 | | Sec. 15-107.1. Tier I participant. "Tier I participant": A |
| | | 09800HB1165ham003 | - 35 - | LRB098 08854 EFG 41971 a |
|
| 1 | | participant under this Article, other than a participant in the | 2 | | self-managed plan under Section 15-158.2, who first became a | 3 | | member or participant before January 1, 2011 under any | 4 | | reciprocal retirement system or pension fund established under | 5 | | this Code other than a retirement system or pension fund | 6 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code and | 7 | | who is not a Tier I retiree. | 8 | | (40 ILCS 5/15-107.2 new) | 9 | | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former | 10 | | Tier I participant who is receiving a retirement annuity.
| 11 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 12 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 13 | | of this
Section 15-136 apply only to those participants who are | 14 | | participating in the
traditional benefit package or the | 15 | | portable benefit package and do not
apply to participants who | 16 | | are participating in the self-managed plan.
| 17 | | (a) The amount of a participant's retirement annuity, | 18 | | expressed in the form
of a single-life annuity, shall be | 19 | | determined by whichever of the following
rules is applicable | 20 | | and provides the largest annuity:
| 21 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 22 | | of earnings for
each of the first 10 years of service, 1.90% | 23 | | for each of the next 10 years of
service, 2.10% for each year | 24 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
| | | 09800HB1165ham003 | - 36 - | LRB098 08854 EFG 41971 a |
|
| 1 | | each year in excess of 30; or for persons who retire on or
| 2 | | after January 1, 1998, 2.2% of the final rate of earnings for | 3 | | each year of
service.
| 4 | | Rule 2: The retirement annuity shall be the sum of the | 5 | | following,
determined from amounts credited to the participant | 6 | | in accordance with the
actuarial tables and the effective rate | 7 | | of interest in effect at the
time the retirement annuity | 8 | | begins:
| 9 | | (i) the normal annuity which can be provided on an | 10 | | actuarially
equivalent basis, by the accumulated normal | 11 | | contributions as of
the date the annuity begins;
| 12 | | (ii) an annuity from employer contributions of an | 13 | | amount equal to that
which can be provided on an | 14 | | actuarially equivalent basis from the accumulated
normal | 15 | | contributions made by the participant under Section | 16 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 17 | | accumulated normal contributions made by
the participant; | 18 | | and
| 19 | | (iii) the annuity that can be provided on an | 20 | | actuarially equivalent basis
from the entire contribution | 21 | | made by the participant under Section 15-113.3.
| 22 | | For the purpose of calculating an annuity under this Rule | 23 | | 2, the contribution required under subsection (c-5) of Section | 24 | | 15-157 shall not be considered when determining the | 25 | | participant's accumulated normal contributions under clause | 26 | | (i) or the employer contribution under clause (ii). |
| | | 09800HB1165ham003 | - 37 - | LRB098 08854 EFG 41971 a |
|
| 1 | | With respect to a police officer or firefighter who retires | 2 | | on or after
August 14, 1998, the accumulated normal | 3 | | contributions taken into account under
clauses (i) and (ii) of | 4 | | this Rule 2 shall include the additional normal
contributions | 5 | | made by the police officer or firefighter under Section
| 6 | | 15-157(a).
| 7 | | The amount of a retirement annuity calculated under this | 8 | | Rule 2 shall
be computed solely on the basis of the | 9 | | participant's accumulated normal
contributions, as specified | 10 | | in this Rule and defined in Section 15-116.
Neither an employee | 11 | | or employer contribution for early retirement under
Section | 12 | | 15-136.2 nor any other employer contribution shall be used in | 13 | | the
calculation of the amount of a retirement annuity under | 14 | | this Rule 2.
| 15 | | This amendatory Act of the 91st General Assembly is a | 16 | | clarification of
existing law and applies to every participant | 17 | | and annuitant without regard to
whether status as an employee | 18 | | terminates before the effective date of this
amendatory Act.
| 19 | | This Rule 2 does not apply to a person who first becomes an | 20 | | employee under this Article on or after July 1, 2005.
| 21 | | Rule 3: The retirement annuity of a participant who is | 22 | | employed
at least one-half time during the period on which his | 23 | | or her final rate of
earnings is based, shall be equal to the | 24 | | participant's years of service
not to exceed 30, multiplied by | 25 | | (1) $96 if the participant's final rate
of earnings is less | 26 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
| | | 09800HB1165ham003 | - 38 - | LRB098 08854 EFG 41971 a |
|
| 1 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 2 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 3 | | the final rate
of earnings is at least $5,500 but less than | 4 | | $6,500, (5)
$144 if the final rate of earnings is at least | 5 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 6 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 7 | | the final rate of earnings is at least $8,500 but
less than | 8 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 9 | | more, except that the annuity for those persons having made an | 10 | | election under
Section 15-154(a-1) shall be calculated and | 11 | | payable under the portable
retirement benefit program pursuant | 12 | | to the provisions of Section 15-136.4.
| 13 | | Rule 4: A participant who is at least age 50 and has 25 or | 14 | | more years of
service as a police officer or firefighter, and a | 15 | | participant who is age 55 or
over and has at least 20 but less | 16 | | than 25 years of service as a police officer
or firefighter, | 17 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 18 | | final rate of earnings for each of the first 10 years of | 19 | | service as a police
officer or firefighter, 2 1/2% for each of | 20 | | the next 10 years of service as a
police officer or | 21 | | firefighter, and 2 3/4% for each year of service as a police
| 22 | | officer or firefighter in excess of 20. The retirement annuity | 23 | | for all other
service shall be computed under Rule 1.
| 24 | | For purposes of this Rule 4, a participant's service as a | 25 | | firefighter
shall also include the following:
| 26 | | (i) service that is performed while the person is an |
| | | 09800HB1165ham003 | - 39 - | LRB098 08854 EFG 41971 a |
|
| 1 | | employee under
subsection (h) of Section 15-107; and
| 2 | | (ii) in the case of an individual who was a | 3 | | participating employee
employed in the fire department of | 4 | | the University of Illinois's
Champaign-Urbana campus | 5 | | immediately prior to the elimination of that fire
| 6 | | department and who immediately after the elimination of | 7 | | that fire department
transferred to another job with the | 8 | | University of Illinois, service performed
as an employee of | 9 | | the University of Illinois in a position other than police
| 10 | | officer or firefighter, from the date of that transfer | 11 | | until the employee's
next termination of service with the | 12 | | University of Illinois.
| 13 | | Rule 5: The retirement annuity of a participant who elected | 14 | | early
retirement under the provisions of Section 15-136.2 and | 15 | | who, on or before
February 16, 1995, brought administrative | 16 | | proceedings pursuant to the
administrative rules adopted by the | 17 | | System to challenge the calculation of his
or her retirement | 18 | | annuity shall be the sum of the following, determined from
| 19 | | amounts credited to the participant in accordance with the | 20 | | actuarial tables and
the prescribed rate of interest in effect | 21 | | at the time the retirement annuity
begins:
| 22 | | (i) the normal annuity which can be provided on an | 23 | | actuarially equivalent
basis, by the accumulated normal | 24 | | contributions as of the date the annuity
begins; and
| 25 | | (ii) an annuity from employer contributions of an | 26 | | amount equal to that
which can be provided on an |
| | | 09800HB1165ham003 | - 40 - | LRB098 08854 EFG 41971 a |
|
| 1 | | actuarially equivalent basis from the accumulated
normal | 2 | | contributions made by the participant under Section | 3 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 4 | | accumulated normal contributions made by the
participant; | 5 | | and
| 6 | | (iii) an annuity which can be provided on an | 7 | | actuarially equivalent basis
from the employee | 8 | | contribution for early retirement under Section 15-136.2, | 9 | | and
an annuity from employer contributions of an amount | 10 | | equal to that which can be
provided on an actuarially | 11 | | equivalent basis from the employee contribution for
early | 12 | | retirement under Section 15-136.2.
| 13 | | In no event shall a retirement annuity under this Rule 5 be | 14 | | lower than the
amount obtained by adding (1) the monthly amount | 15 | | obtained by dividing the
combined employee and employer | 16 | | contributions made under Section 15-136.2 by the
System's | 17 | | annuity factor for the age of the participant at the beginning | 18 | | of the
annuity payment period and (2) the amount equal to the | 19 | | participant's annuity if
calculated under Rule 1, reduced under | 20 | | Section 15-136(b) as if no
contributions had been made under | 21 | | Section 15-136.2.
| 22 | | With respect to a participant who is qualified for a | 23 | | retirement annuity under
this Rule 5 whose retirement annuity | 24 | | began before the effective date of this
amendatory Act of the | 25 | | 91st General Assembly, and for whom an employee
contribution | 26 | | was made under Section 15-136.2, the System shall recalculate |
| | | 09800HB1165ham003 | - 41 - | LRB098 08854 EFG 41971 a |
|
| 1 | | the
retirement annuity under this Rule 5 and shall pay any | 2 | | additional amounts due
in the manner provided in Section | 3 | | 15-186.1 for benefits mistakenly set too low.
| 4 | | The amount of a retirement annuity calculated under this | 5 | | Rule 5 shall be
computed solely on the basis of those | 6 | | contributions specifically set forth in
this Rule 5. Except as | 7 | | provided in clause (iii) of this Rule 5, neither an
employee | 8 | | nor employer contribution for early retirement under Section | 9 | | 15-136.2,
nor any other employer contribution, shall be used in | 10 | | the calculation of the
amount of a retirement annuity under | 11 | | this Rule 5.
| 12 | | The General Assembly has adopted the changes set forth in | 13 | | Section 25 of this
amendatory Act of the 91st General Assembly | 14 | | in recognition that the decision of
the Appellate Court for the | 15 | | Fourth District in Mattis v. State Universities
Retirement | 16 | | System et al. might be deemed to give some right to the | 17 | | plaintiff in
that case. The changes made by Section 25 of this | 18 | | amendatory Act of the 91st
General Assembly are a legislative | 19 | | implementation of the decision of the
Appellate Court for the | 20 | | Fourth District in Mattis v. State Universities
Retirement | 21 | | System et al. with respect to that plaintiff.
| 22 | | The changes made by Section 25 of this amendatory Act of | 23 | | the 91st General
Assembly apply without regard to whether the | 24 | | person is in service as an
employee on or after its effective | 25 | | date.
| 26 | | (b) The retirement annuity provided under Rules 1 and 3 |
| | | 09800HB1165ham003 | - 42 - | LRB098 08854 EFG 41971 a |
|
| 1 | | above shall be
reduced by 1/2 of 1% for each month the | 2 | | participant is under age 60 at the
time of retirement. However, | 3 | | this reduction shall not apply in the following
cases:
| 4 | | (1) For a disabled participant whose disability | 5 | | benefits have been
discontinued because he or she has | 6 | | exhausted eligibility for disability
benefits under clause | 7 | | (6) of Section 15-152;
| 8 | | (2) For a participant who has at least the number of | 9 | | years of service
required to retire at any age under | 10 | | subsection (a) of Section 15-135; or
| 11 | | (3) For that portion of a retirement annuity which has | 12 | | been provided on
account of service of the participant | 13 | | during periods when he or she performed
the duties of a | 14 | | police officer or firefighter, if these duties were | 15 | | performed
for at least 5 years immediately preceding the | 16 | | date the retirement annuity
is to begin.
| 17 | | (c) The maximum retirement annuity provided under Rules 1, | 18 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 19 | | benefits as specified in
Section 415 of the Internal Revenue | 20 | | Code of 1986, as such Section may be
amended from time to time | 21 | | and as such benefit limits shall be adjusted by
the | 22 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 23 | | earnings.
| 24 | | (d) An annuitant whose status as an employee terminates | 25 | | after August 14,
1969 shall receive automatic increases in his | 26 | | or her retirement annuity as
follows:
|
| | | 09800HB1165ham003 | - 43 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Effective January 1 immediately following the date the | 2 | | retirement annuity
begins, the annuitant shall receive an | 3 | | increase in his or her monthly
retirement annuity of 0.125% of | 4 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 5 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, | 6 | | multiplied by
the number of full months which elapsed from the | 7 | | date the retirement annuity
payments began to January 1, 1972, | 8 | | plus 0.1667% of such annuity, multiplied by
the number of full | 9 | | months which elapsed from January 1, 1972, or the date the
| 10 | | retirement annuity payments began, whichever is later, to | 11 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 12 | | number of full months which elapsed
from January 1, 1978, or | 13 | | the date the retirement annuity payments began,
whichever is | 14 | | later, to the effective date of the increase.
| 15 | | The annuitant shall receive an increase in his or her | 16 | | monthly retirement
annuity on each January 1 thereafter during | 17 | | the annuitant's life of 3% of
the monthly annuity provided | 18 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | 19 | | this Section. The change made under this subsection by P.A. | 20 | | 81-970 is
effective January 1, 1980 and applies to each | 21 | | annuitant whose status as
an employee terminates before or | 22 | | after that date.
| 23 | | Beginning January 1, 1990, all automatic annual increases | 24 | | payable under
this Section shall be calculated as a percentage | 25 | | of the total annuity
payable at the time of the increase, | 26 | | including all increases previously
granted under this Article.
|
| | | 09800HB1165ham003 | - 44 - | LRB098 08854 EFG 41971 a |
|
| 1 | | The change made in this subsection by P.A. 85-1008 is | 2 | | effective January
26, 1988, and is applicable without regard to | 3 | | whether status as an employee
terminated before that date.
| 4 | | (e) If, on January 1, 1987, or the date the retirement | 5 | | annuity payment
period begins, whichever is later, the sum of | 6 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 7 | | Section
and the automatic annual increases provided under the | 8 | | preceding subsection
or Section 15-136.1, amounts to less than | 9 | | the retirement
annuity which would be provided by Rule 3, the | 10 | | retirement
annuity shall be increased as of January 1, 1987, or | 11 | | the date the
retirement annuity payment period begins, | 12 | | whichever is later, to the amount
which would be provided by | 13 | | Rule 3 of this Section. Such increased
amount shall be | 14 | | considered as the retirement annuity in determining
benefits | 15 | | provided under other Sections of this Article. This paragraph
| 16 | | applies without regard to whether status as an employee | 17 | | terminated before the
effective date of this amendatory Act of | 18 | | 1987, provided that the annuitant was
employed at least | 19 | | one-half time during the period on which the final rate of
| 20 | | earnings was based.
| 21 | | (f) A participant is entitled to such additional annuity as | 22 | | may be provided
on an actuarially equivalent basis, by any | 23 | | accumulated
additional contributions to his or her credit. | 24 | | However,
the additional contributions made by the participant | 25 | | toward the automatic
increases in annuity provided under this | 26 | | Section and the contributions made under subsection (c-5) of |
| | | 09800HB1165ham003 | - 45 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Section 15-157 by this amendatory Act of the 98th General | 2 | | Assembly shall not be taken into
account in determining the | 3 | | amount of such additional annuity.
| 4 | | (g) If, (1) by law, a function of a governmental unit, as | 5 | | defined by Section
20-107 of this Code, is transferred in whole | 6 | | or in part to an employer, and (2)
a participant transfers | 7 | | employment from such governmental unit to such employer
within | 8 | | 6 months after the transfer of the function, and (3) the sum of | 9 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 10 | | 3 of this Section (B)
all proportional annuities payable to the | 11 | | participant by all other retirement
systems covered by Article | 12 | | 20, and (C) the initial primary insurance amount to
which the | 13 | | participant is entitled under the Social Security Act, is less | 14 | | than
the retirement annuity which would have been payable if | 15 | | all of the
participant's pension credits validated under | 16 | | Section 20-109 had been validated
under this system, a | 17 | | supplemental annuity equal to the difference in such
amounts | 18 | | shall be payable to the participant.
| 19 | | (h) On January 1, 1981, an annuitant who was receiving
a | 20 | | retirement annuity on or before January 1, 1971 shall have his | 21 | | or her
retirement annuity then being paid increased $1 per | 22 | | month for
each year of creditable service. On January 1, 1982, | 23 | | an annuitant whose
retirement annuity began on or before | 24 | | January 1, 1977, shall have his or her
retirement annuity then | 25 | | being paid increased $1 per month for each year of
creditable | 26 | | service.
|
| | | 09800HB1165ham003 | - 46 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (i) On January 1, 1987, any annuitant whose retirement | 2 | | annuity began on or
before January 1, 1977, shall have the | 3 | | monthly retirement annuity increased by
an amount equal to 8˘ | 4 | | per year of creditable service times the number of years
that | 5 | | have elapsed since the annuity began.
| 6 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 7 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 8 | | Sec. 15-155. Employer contributions.
| 9 | | (a) The State of Illinois shall make contributions by | 10 | | appropriations of
amounts which, together with the other | 11 | | employer contributions from trust,
federal, and other funds, | 12 | | employee contributions, income from investments,
and other | 13 | | income of this System, will be sufficient to meet the cost of
| 14 | | maintaining and administering the System on a 100% 90% funded | 15 | | basis in accordance
with actuarial recommendations.
| 16 | | The Board shall determine the amount of State contributions | 17 | | required for
each fiscal year on the basis of the actuarial | 18 | | tables and other assumptions
adopted by the Board and the | 19 | | recommendations of the actuary, using the formula
in subsection | 20 | | (a-1).
| 21 | | (a-1) For State fiscal years 2015 through 2045, the minimum | 22 | | contribution
to the System to be made by the State for each | 23 | | fiscal year shall be an amount
determined by the System to be | 24 | | sufficient to bring the total assets of the
System up to 100% | 25 | | of the total actuarial liabilities of the System by the end of
|
| | | 09800HB1165ham003 | - 47 - | LRB098 08854 EFG 41971 a |
|
| 1 | | State fiscal year 2045. In making these determinations, the | 2 | | required State
contribution shall be calculated each year as a | 3 | | level percentage of payroll
over the years remaining to and | 4 | | including fiscal year 2045 and shall be
determined under the | 5 | | projected unit credit actuarial cost method. | 6 | | For State fiscal years 2012 through 2014 2045 , the minimum | 7 | | contribution
to the System to be made by the State for each | 8 | | fiscal year shall be an amount
determined by the System to be | 9 | | sufficient to bring the total assets of the
System up to 90% of | 10 | | the total actuarial liabilities of the System by the end of
| 11 | | State fiscal year 2045. In making these determinations, the | 12 | | required State
contribution shall be calculated each year as a | 13 | | level percentage of payroll
over the years remaining to and | 14 | | including fiscal year 2045 and shall be
determined under the | 15 | | projected unit credit actuarial cost method.
| 16 | | For State fiscal years 1996 through 2005, the State | 17 | | contribution to
the System, as a percentage of the applicable | 18 | | employee payroll, shall be
increased in equal annual increments | 19 | | so that by State fiscal year 2011, the
State is contributing at | 20 | | the rate required under this Section.
| 21 | | Notwithstanding any other provision of this Article, the | 22 | | total required State
contribution for State fiscal year 2006 is | 23 | | $166,641,900.
| 24 | | Notwithstanding any other provision of this Article, the | 25 | | total required State
contribution for State fiscal year 2007 is | 26 | | $252,064,100.
|
| | | 09800HB1165ham003 | - 48 - | LRB098 08854 EFG 41971 a |
|
| 1 | | For each of State fiscal years 2008 through 2009, the State | 2 | | contribution to
the System, as a percentage of the applicable | 3 | | employee payroll, shall be
increased in equal annual increments | 4 | | from the required State contribution for State fiscal year | 5 | | 2007, so that by State fiscal year 2011, the
State is | 6 | | contributing at the rate otherwise required under this Section.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State contribution for State fiscal year 2010 is | 9 | | $702,514,000 and shall be made from the State Pensions Fund and | 10 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 11 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 12 | | share of bond sale expenses determined by the System's share of | 13 | | total bond proceeds, (ii) any amounts received from the General | 14 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 15 | | proceeds due to the issuance of discounted bonds, if | 16 | | applicable. | 17 | | Notwithstanding any other provision of this Article, the
| 18 | | total required State contribution for State fiscal year 2011 is
| 19 | | the amount recertified by the System on or before April 1, 2011 | 20 | | pursuant to Section 15-165 and shall be made from the State | 21 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 22 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 23 | | less (i) the pro rata
share of bond sale expenses determined by | 24 | | the System's share of
total bond proceeds, (ii) any amounts | 25 | | received from the General
Revenue Fund in fiscal year 2011, and | 26 | | (iii) any reduction in bond
proceeds due to the issuance of |
| | | 09800HB1165ham003 | - 49 - | LRB098 08854 EFG 41971 a |
|
| 1 | | discounted bonds, if
applicable. | 2 | | Beginning in State fiscal year 2046, the minimum State | 3 | | contribution for
each fiscal year shall be the amount needed to | 4 | | maintain the total assets of
the System at 90% of the total | 5 | | actuarial liabilities of the System.
| 6 | | Amounts received by the System pursuant to Section 25 of | 7 | | the Budget Stabilization Act or Section 8.12 of the State | 8 | | Finance Act in any fiscal year do not reduce and do not | 9 | | constitute payment of any portion of the minimum State | 10 | | contribution required under this Article in that fiscal year. | 11 | | Such amounts shall not reduce, and shall not be included in the | 12 | | calculation of, the required State contributions under this | 13 | | Article in any future year until the System has reached a | 14 | | funding ratio of at least 100% 90% . A reference in this Article | 15 | | to the "required State contribution" or any substantially | 16 | | similar term does not include or apply to any amounts payable | 17 | | to the System under Section 25 of the Budget Stabilization Act. | 18 | | Notwithstanding any other provision of this Code or the | 19 | | Budget Stabilization Act, amounts transferred to the System | 20 | | pursuant to the Budget Stabilization Act after the effective | 21 | | date of this amendatory Act of the 98th General Assembly do not | 22 | | reduce and do not constitute payment of any portion of the | 23 | | required State contribution under this Article in that fiscal | 24 | | year. Such amounts shall not reduce, and shall not be included | 25 | | in the calculation of, the required State contributions under | 26 | | this Article in any future year until the System has received |
| | | 09800HB1165ham003 | - 50 - | LRB098 08854 EFG 41971 a |
|
| 1 | | payment of contributions pursuant to the Budget Stabilization | 2 | | 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 through State | 6 | | fiscal year 2014 , as
calculated under this Section and
| 7 | | certified under Section 15-165, shall not exceed an amount | 8 | | equal to (i) the
amount of the required State contribution that | 9 | | would have been calculated under
this Section for that fiscal | 10 | | year if the System had not received any payments
under | 11 | | subsection (d) of Section 7.2 of the General Obligation Bond | 12 | | Act, minus
(ii) the portion of the State's total debt service | 13 | | payments for that fiscal
year on the bonds issued in fiscal | 14 | | year 2003 for the purposes of that Section 7.2, as determined
| 15 | | and certified by the Comptroller, that is the same as the | 16 | | System's portion of
the total moneys distributed under | 17 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 18 | | Act. In determining this maximum for State fiscal years 2008 | 19 | | through 2010, however, the amount referred to in item (i) shall | 20 | | be increased, as a percentage of the applicable employee | 21 | | payroll, in equal increments calculated from the sum of the | 22 | | required State contribution for State fiscal year 2007 plus the | 23 | | applicable portion of the State's total debt service payments | 24 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 25 | | for the purposes of Section 7.2 of the General
Obligation Bond | 26 | | Act, so that, by State fiscal year 2011, the
State is |
| | | 09800HB1165ham003 | - 51 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contributing at the rate otherwise required under this Section.
| 2 | | (b) If an employee is paid from trust or federal funds, the | 3 | | employer
shall pay to the Board contributions from those funds | 4 | | which are
sufficient to cover the accruing normal costs on | 5 | | behalf of the employee.
However, universities having employees | 6 | | who are compensated out of local
auxiliary funds, income funds, | 7 | | or service enterprise funds are not required
to pay such | 8 | | contributions on behalf of those employees. The local auxiliary
| 9 | | funds, income funds, and service enterprise funds of | 10 | | universities shall not be
considered trust funds for the | 11 | | purpose of this Article, but funds of alumni
associations, | 12 | | foundations, and athletic associations which are affiliated | 13 | | with
the universities included as employers under this Article | 14 | | and other employers
which do not receive State appropriations | 15 | | are considered to be trust funds for
the purpose of this | 16 | | Article.
| 17 | | (b-1) The City of Urbana and the City of Champaign shall | 18 | | each make
employer contributions to this System for their | 19 | | respective firefighter
employees who participate in this | 20 | | System pursuant to subsection (h) of Section
15-107. The rate | 21 | | of contributions to be made by those municipalities shall
be | 22 | | determined annually by the Board on the basis of the actuarial | 23 | | assumptions
adopted by the Board and the recommendations of the | 24 | | actuary, and shall be
expressed as a percentage of salary for | 25 | | each such employee. The Board shall
certify the rate to the | 26 | | affected municipalities as soon as may be practical.
The |
| | | 09800HB1165ham003 | - 52 - | LRB098 08854 EFG 41971 a |
|
| 1 | | employer contributions required under this subsection shall be | 2 | | remitted by
the municipality to the System at the same time and | 3 | | in the same manner as
employee contributions.
| 4 | | (c) Through State fiscal year 1995: The total employer | 5 | | contribution shall
be apportioned among the various funds of | 6 | | the State and other employers,
whether trust, federal, or other | 7 | | funds, in accordance with actuarial procedures
approved by the | 8 | | Board. State of Illinois contributions for employers receiving
| 9 | | State appropriations for personal services shall be payable | 10 | | from appropriations
made to the employers or to the System. The | 11 | | contributions for Class I
community colleges covering earnings | 12 | | other than those paid from trust and
federal funds, shall be | 13 | | payable solely from appropriations to the Illinois
Community | 14 | | College Board or the System for employer contributions.
| 15 | | (d) Beginning in State fiscal year 1996, the required State | 16 | | contributions
to the System shall be appropriated directly to | 17 | | the System and shall be payable
through vouchers issued in | 18 | | accordance with subsection (c) of Section 15-165, except as | 19 | | provided in subsection (g).
| 20 | | (e) The State Comptroller shall draw warrants payable to | 21 | | the System upon
proper certification by the System or by the | 22 | | employer in accordance with the
appropriation laws and this | 23 | | Code.
| 24 | | (f) Normal costs under this Section means liability for
| 25 | | pensions and other benefits which accrues to the System because | 26 | | of the
credits earned for service rendered by the participants |
| | | 09800HB1165ham003 | - 53 - | LRB098 08854 EFG 41971 a |
|
| 1 | | during the
fiscal year and expenses of administering the | 2 | | System, but shall not
include the principal of or any | 3 | | redemption premium or interest on any bonds
issued by the Board | 4 | | or any expenses incurred or deposits required in
connection | 5 | | therewith.
| 6 | | (g) If the amount of a participant's earnings for any | 7 | | academic year used to determine the final rate of earnings, | 8 | | determined on a full-time equivalent basis, exceeds the amount | 9 | | of his or her earnings with the same employer for the previous | 10 | | academic year, determined on a full-time equivalent basis, by | 11 | | more than 6%, the participant's employer shall pay to the | 12 | | System, in addition to all other payments required under this | 13 | | Section and in accordance with guidelines established by the | 14 | | System, the present value of the increase in benefits resulting | 15 | | from the portion of the increase in earnings that is in excess | 16 | | of 6%. This present value shall be computed by the System on | 17 | | the basis of the actuarial assumptions and tables used in the | 18 | | most recent actuarial valuation of the System that is available | 19 | | at the time of the computation. The System may require the | 20 | | employer to provide any pertinent information or | 21 | | documentation. | 22 | | Whenever it determines that a payment is or may be required | 23 | | under this subsection (g), the System shall calculate the | 24 | | amount of the payment and bill the employer for that amount. | 25 | | The bill shall specify the calculations used to determine the | 26 | | amount due. If the employer disputes the amount of the bill, it |
| | | 09800HB1165ham003 | - 54 - | LRB098 08854 EFG 41971 a |
|
| 1 | | may, within 30 days after receipt of the bill, apply to the | 2 | | System in writing for a recalculation. The application must | 3 | | specify in detail the grounds of the dispute and, if the | 4 | | employer asserts that the calculation is subject to subsection | 5 | | (h) or (i) of this Section, must include an affidavit setting | 6 | | forth and attesting to all facts within the employer's | 7 | | knowledge that are pertinent to the applicability of subsection | 8 | | (h) or (i). Upon receiving a timely application for | 9 | | recalculation, the System shall review the application and, if | 10 | | appropriate, recalculate the amount due.
| 11 | | The employer contributions required under this subsection | 12 | | (g) (f) may be paid in the form of a lump sum within 90 days | 13 | | after receipt of the bill. If the employer contributions are | 14 | | not paid within 90 days after receipt of the bill, then | 15 | | interest will be charged at a rate equal to the System's annual | 16 | | actuarially assumed rate of return on investment compounded | 17 | | annually from the 91st day after receipt of the bill. Payments | 18 | | must be concluded within 3 years after the employer's receipt | 19 | | of the bill. | 20 | | (h) This subsection (h) applies only to payments made or | 21 | | salary increases given on or after June 1, 2005 but before July | 22 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 23 | | require the System to refund any payments received before July | 24 | | 31, 2006 (the effective date of Public Act 94-1057). | 25 | | When assessing payment for any amount due under subsection | 26 | | (g), the System shall exclude earnings increases paid to |
| | | 09800HB1165ham003 | - 55 - | LRB098 08854 EFG 41971 a |
|
| 1 | | participants under contracts or collective bargaining | 2 | | agreements entered into, amended, or renewed before June 1, | 3 | | 2005.
| 4 | | When assessing payment for any amount due under subsection | 5 | | (g), the System shall exclude earnings increases paid to a | 6 | | participant at a time when the participant is 10 or more years | 7 | | from retirement eligibility under Section 15-135.
| 8 | | When assessing payment for any amount due under subsection | 9 | | (g), the System shall exclude earnings increases resulting from | 10 | | overload work, including a contract for summer teaching, or | 11 | | overtime when the employer has certified to the System, and the | 12 | | System has approved the certification, that: (i) in the case of | 13 | | overloads (A) the overload work is for the sole purpose of | 14 | | academic instruction in excess of the standard number of | 15 | | instruction hours for a full-time employee occurring during the | 16 | | academic year that the overload is paid and (B) the earnings | 17 | | increases are equal to or less than the rate of pay for | 18 | | academic instruction computed using the participant's current | 19 | | salary rate and work schedule; and (ii) in the case of | 20 | | overtime, the overtime was necessary for the educational | 21 | | mission. | 22 | | When assessing payment for any amount due under subsection | 23 | | (g), the System shall exclude any earnings increase resulting | 24 | | from (i) a promotion for which the employee moves from one | 25 | | classification to a higher classification under the State | 26 | | Universities Civil Service System, (ii) a promotion in academic |
| | | 09800HB1165ham003 | - 56 - | LRB098 08854 EFG 41971 a |
|
| 1 | | rank for a tenured or tenure-track faculty position, or (iii) a | 2 | | promotion that the Illinois Community College Board has | 3 | | recommended in accordance with subsection (k) of this Section. | 4 | | These earnings increases shall be excluded only if the | 5 | | promotion is to a position that has existed and been filled by | 6 | | a member for no less than one complete academic year and the | 7 | | earnings increase as a result of the promotion is an increase | 8 | | that results in an amount no greater than the average salary | 9 | | paid for other similar positions. | 10 | | (i) When assessing payment for any amount due under | 11 | | subsection (g), the System shall exclude any salary increase | 12 | | described in subsection (h) of this Section given on or after | 13 | | July 1, 2011 but before July 1, 2014 under a contract or | 14 | | collective bargaining agreement entered into, amended, or | 15 | | renewed on or after June 1, 2005 but before July 1, 2011. | 16 | | Notwithstanding any other provision of this Section, any | 17 | | payments made or salary increases given after June 30, 2014 | 18 | | shall be used in assessing payment for any amount due under | 19 | | subsection (g) of this Section.
| 20 | | (j) The System shall prepare a report and file copies of | 21 | | the report with the Governor and the General Assembly by | 22 | | January 1, 2007 that contains all of the following information: | 23 | | (1) The number of recalculations required by the | 24 | | changes made to this Section by Public Act 94-1057 for each | 25 | | employer. | 26 | | (2) The dollar amount by which each employer's |
| | | 09800HB1165ham003 | - 57 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contribution to the System was changed due to | 2 | | recalculations required by Public Act 94-1057. | 3 | | (3) The total amount the System received from each | 4 | | employer as a result of the changes made to this Section by | 5 | | Public Act 94-4. | 6 | | (4) The increase in the required State contribution | 7 | | resulting from the changes made to this Section by Public | 8 | | Act 94-1057. | 9 | | (k) The Illinois Community College Board shall adopt rules | 10 | | for recommending lists of promotional positions submitted to | 11 | | the Board by community colleges and for reviewing the | 12 | | promotional lists on an annual basis. When recommending | 13 | | promotional lists, the Board shall consider the similarity of | 14 | | the positions submitted to those positions recognized for State | 15 | | universities by the State Universities Civil Service System. | 16 | | The Illinois Community College Board shall file a copy of its | 17 | | findings with the System. The System shall consider the | 18 | | findings of the Illinois Community College Board when making | 19 | | determinations under this Section. The System shall not exclude | 20 | | any earnings increases resulting from a promotion when the | 21 | | promotion was not submitted by a community college. Nothing in | 22 | | this subsection (k) shall require any community college to | 23 | | submit any information to the Community College Board.
| 24 | | (l) For purposes of determining the required State | 25 | | contribution to the System, the value of the System's assets | 26 | | shall be equal to the actuarial value of the System's assets, |
| | | 09800HB1165ham003 | - 58 - | LRB098 08854 EFG 41971 a |
|
| 1 | | which shall be calculated as follows: | 2 | | As of June 30, 2008, the actuarial value of the System's | 3 | | assets shall be equal to the market value of the assets as of | 4 | | that date. In determining the actuarial value of the System's | 5 | | assets for fiscal years after June 30, 2008, any actuarial | 6 | | gains or losses from investment return incurred in a fiscal | 7 | | year shall be recognized in equal annual amounts over the | 8 | | 5-year period following that fiscal year. | 9 | | (m) For purposes of determining the required State | 10 | | contribution to the system for a particular year, the actuarial | 11 | | value of assets shall be assumed to earn a rate of return equal | 12 | | to the system's actuarially assumed rate of return. | 13 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 14 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 15 | | 7-13-12; revised 10-17-12.)
| 16 | | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
| 17 | | Sec. 15-156. Obligations of State ; funding guarantees . | 18 | | (a) The payment of (1) the
required State contributions, | 19 | | (2) all benefits
granted under this system and (3) all expenses | 20 | | in connection with the
administration and operation thereof are | 21 | | obligations of the State of
Illinois to the extent specified in | 22 | | this Article. The accumulated
employee normal, additional and | 23 | | survivors insurance contributions
credited to the accounts of | 24 | | active and inactive participants
shall not be used to pay the | 25 | | State's share of the obligations.
|
| | | 09800HB1165ham003 | - 59 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (c) Pursuant to Article XIII, Section 5 of the 1970 | 2 | | Constitution of the State of Illinois, beginning on July 1, | 3 | | 2013, the State shall, as a retirement benefit to each | 4 | | participant and annuitant of the System be contractually | 5 | | obligated to the System (as a fiduciary and trustee of the | 6 | | participants and annuitants) to pay the annual required State | 7 | | contribution, as determined by the Board of the System using | 8 | | generally accepted actuarial principles, as is necessary to | 9 | | bring the total assets of the System up to 100% of the total | 10 | | actuarial liabilities of the System by the end of State fiscal | 11 | | year 2045. As a further retirement benefit and contractual | 12 | | obligation, each fiscal year, the State shall pay to each | 13 | | designated retirement system the annual required State | 14 | | contribution certified by the Board for that fiscal year. | 15 | | Payments of the annual required State contribution for each | 16 | | fiscal year shall be made in equal monthly installments. | 17 | | Additionally, beginning in fiscal year 2014, State transfers to | 18 | | the Pension Stabilization Fund pursuant to Section 20 of the | 19 | | Budget Stabilization Act and payments to the System pursuant to | 20 | | Section 25 of the Budget Stabilization Act shall be further | 21 | | retirement benefits and contractual obligations. The transfers | 22 | | and payments prescribed in Sections 20 and 25 of the Budget | 23 | | Stabilization Act shall not be used by the retirement system | 24 | | when calculation any pension payment until the System has | 25 | | reached a funded level of 100%. This Section and the security | 26 | | it provides to participants and annuitants is intended to be, |
| | | 09800HB1165ham003 | - 60 - | LRB098 08854 EFG 41971 a |
|
| 1 | | and is, a contractual right that is part of the pension | 2 | | benefits provided to the participants and annuitants. | 3 | | Notwithstanding anything to the contrary in the Court of Claims | 4 | | Act or any other law, a designated retirement system has the | 5 | | exclusive right to and shall bring a mandamus action in the | 6 | | Circuit Court of Champaign County against the State to compel | 7 | | the State to make any installment of the annual required State | 8 | | contribution required by this Section, irrespective of other | 9 | | remedies that may be available to the System. Each member or | 10 | | annuitant of the System has the right to in any judicial | 11 | | district in which the System maintains an office if the System | 12 | | fails to bring an action specified in this Section, | 13 | | irrespective of other remedies that may be available to the | 14 | | member or annuitant. In making these determinations, the | 15 | | required State contribution shall be calculated each year as a | 16 | | level percentage of payroll over the years remaining to and | 17 | | including fiscal year 2045 and shall be determined under the | 18 | | projected unit credit actuarial cost method. | 19 | | (Source: P.A. 83-1440.)
| 20 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| 21 | | Sec. 15-157. Employee Contributions.
| 22 | | (a) Each participating employee
shall make contributions | 23 | | towards the retirement
benefits payable under the retirement | 24 | | program applicable to the
employee from each payment
of | 25 | | earnings applicable to employment under this system on and |
| | | 09800HB1165ham003 | - 61 - | LRB098 08854 EFG 41971 a |
|
| 1 | | after the
date of becoming a participant as follows: Prior to | 2 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | 3 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | 4 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | 5 | | are to be considered as normal contributions for purposes
of | 6 | | this Article.
| 7 | | Each participant who is a police officer or firefighter | 8 | | shall make normal
contributions of 8% of each payment of | 9 | | earnings applicable to employment as a
police officer or | 10 | | firefighter under this system on or after September 1, 1981,
| 11 | | unless he or she files with the board within 60 days after the | 12 | | effective date
of this amendatory Act of 1991 or 60 days after | 13 | | the board receives notice that
he or she is employed as a | 14 | | police officer or firefighter, whichever is later,
a written | 15 | | notice waiving the retirement formula provided by Rule 4 of | 16 | | Section
15-136. This waiver shall be irrevocable. If a | 17 | | participant had met the
conditions set forth in Section | 18 | | 15-132.1 prior to the effective date of this
amendatory Act of | 19 | | 1991 but failed to make the additional normal contributions
| 20 | | required by this paragraph, he or she may elect to pay the | 21 | | additional
contributions plus compound interest at the | 22 | | effective rate. If such payment
is received by the board, the | 23 | | service shall be considered as police officer
service in | 24 | | calculating the retirement annuity under Rule 4 of Section | 25 | | 15-136.
While performing service described in clause (i) or | 26 | | (ii) of Rule 4 of Section
15-136, a participating employee |
| | | 09800HB1165ham003 | - 62 - | LRB098 08854 EFG 41971 a |
|
| 1 | | shall be deemed to be employed as a
firefighter for the purpose | 2 | | of determining the rate of employee contributions
under this | 3 | | Section.
| 4 | | (b) Starting September 1, 1969, each participating | 5 | | employee shall make
additional contributions of 1/2 of 1% of | 6 | | earnings to finance a portion
of the cost of the annual | 7 | | increases in retirement annuity provided under
Section 15-136, | 8 | | except that with respect to participants in the
self-managed | 9 | | plan this additional contribution shall be used to finance the
| 10 | | benefits obtained under that retirement program.
| 11 | | (c) In addition to the amounts described in subsections (a) | 12 | | and (b) of this
Section, each participating employee shall make | 13 | | contributions of 1% of earnings
applicable under this system on | 14 | | and after August 1, 1959. The contributions
made under this | 15 | | subsection (c) shall be considered as survivor's insurance
| 16 | | contributions for purposes of this Article if the employee is | 17 | | covered under
the traditional benefit package, and such | 18 | | contributions shall be considered
as additional contributions | 19 | | for purposes of this Article if the employee is
participating | 20 | | in the self-managed plan or has elected to participate in the
| 21 | | portable benefit package and has completed the applicable | 22 | | one-year waiting
period. Contributions in excess of $80 during | 23 | | any fiscal year beginning before
August 31, 1969 and in excess | 24 | | of $120 during any fiscal year thereafter until
September 1, | 25 | | 1971 shall be considered as additional contributions for | 26 | | purposes
of this Article.
|
| | | 09800HB1165ham003 | - 63 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (c-5) In addition to the contributions otherwise required | 2 | | under this Article, each Tier I participant shall also make the | 3 | | following contributions toward the cost of his or her | 4 | | retirement annuity from each payment
of salary received by him | 5 | | or her for service as a member: | 6 | | (1) beginning July 1, 2013 and through June 30, 2014, | 7 | | 1% of earnings; and | 8 | | (2) beginning on July 1, 2014, 2% of earnings. | 9 | | Except as otherwise specified, these contributions are to | 10 | | be considered as normal contributions for purposes
of this | 11 | | Article. | 12 | | (d) If the board by board rule so permits and subject to | 13 | | such conditions
and limitations as may be specified in its | 14 | | rules, a participant may make
other additional contributions of | 15 | | such percentage of earnings or amounts as
the participant shall | 16 | | elect in a written notice thereof received by the board.
| 17 | | (e) That fraction of a participant's total accumulated | 18 | | normal
contributions, the numerator of which is equal to the | 19 | | number of years of
service in excess of that which is required | 20 | | to qualify for the maximum
retirement annuity, and the | 21 | | denominator of which is equal to the total
service of the | 22 | | participant, shall be considered as accumulated additional
| 23 | | contributions. The determination of the applicable maximum | 24 | | annuity and
the adjustment in contributions required by this | 25 | | provision shall be made
as of the date of the participant's | 26 | | retirement.
|
| | | 09800HB1165ham003 | - 64 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (f) Notwithstanding the foregoing, a participating | 2 | | employee shall not
be required to make contributions under this | 3 | | Section after the date upon
which continuance of such | 4 | | contributions would otherwise cause his or her
retirement | 5 | | annuity to exceed the maximum retirement annuity as specified | 6 | | in
clause (1) of subsection (c) of Section 15-136.
| 7 | | (g) A participating employee may make contributions for the | 8 | | purchase of
service credit under this Article.
| 9 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | 10 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | 11 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| 12 | | (40 ILCS 5/16-106.4 new) | 13 | | Sec. 16-106.4. Tier I member. "Tier I member": A member | 14 | | under this Article who first became a member or participant | 15 | | before January 1, 2011 under any reciprocal retirement system | 16 | | or pension fund established under this Code other than a | 17 | | retirement system or pension fund established under Article 2, | 18 | | 3, 4, 5, 6, or 18 of this Code and who is not a Tier I retiree. | 19 | | (40 ILCS 5/16-106.5 new) | 20 | | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former | 21 | | Tier I member who is receiving a retirement annuity.
| 22 | | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| 23 | | Sec. 16-133. Retirement annuity; amount.
|
| | | 09800HB1165ham003 | - 65 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (a) The amount of the retirement annuity shall be (i) in | 2 | | the case of a person who first became a teacher under this | 3 | | Article before July 1, 2005, the larger of the
amounts | 4 | | determined under paragraphs (A) and (B) below, or (ii) in the | 5 | | case of a person who first becomes a teacher under this Article | 6 | | on or after July 1, 2005, the amount determined under the | 7 | | applicable provisions of paragraph (B):
| 8 | | (A) An amount consisting of the sum of the following:
| 9 | | (1) An amount that can be provided on an | 10 | | actuarially equivalent basis
by the member's | 11 | | accumulated contributions at the time of retirement; | 12 | | and
| 13 | | (2) The sum of (i) the amount that can be provided | 14 | | on an actuarially
equivalent basis by the member's | 15 | | accumulated contributions representing
service prior | 16 | | to July 1, 1947, and (ii) the amount that can be | 17 | | provided on
an actuarially equivalent basis by the | 18 | | amount obtained by multiplying 1.4
times the member's | 19 | | accumulated contributions covering service subsequent | 20 | | to
June 30, 1947; and
| 21 | | (3) If there is prior service, 2 times the amount | 22 | | that would have been
determined under subparagraph (2) | 23 | | of paragraph (A) above on account of
contributions | 24 | | which would have been made during the period of prior | 25 | | service
creditable to the member had the System been in | 26 | | operation and had the
member made contributions at the |
| | | 09800HB1165ham003 | - 66 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contribution rate in effect prior to
July 1, 1947.
| 2 | | For the purpose of calculating the sum provided under | 3 | | this paragraph (A), the contribution required under | 4 | | subsection (a-5) of Section 16-152 shall not be considered | 5 | | when determining the amount of the member's accumulated | 6 | | contributions under subparagraph (1) or (2). | 7 | | This paragraph (A) does not apply to a person who first | 8 | | becomes a teacher under this Article on or after July 1, | 9 | | 2005.
| 10 | | (B) An amount consisting of the greater of the | 11 | | following:
| 12 | | (1) For creditable service earned before July 1, | 13 | | 1998 that has not
been augmented under Section | 14 | | 16-129.1: 1.67% of final average salary for
each of the | 15 | | first 10 years of creditable service, 1.90% of final | 16 | | average salary
for each year in excess of 10 but not | 17 | | exceeding 20, 2.10% of final average
salary for each | 18 | | year in excess of 20 but not exceeding 30, and 2.30% of | 19 | | final
average salary for each year in excess of 30; and
| 20 | | For creditable service earned on or after July 1, | 21 | | 1998 by a member who
has at least 24 years of | 22 | | creditable service on July 1, 1998 and who
does not | 23 | | elect to augment service under Section 16-129.1: 2.2% | 24 | | of final
average salary for each year of creditable | 25 | | service earned on or after July 1,
1998 but before the | 26 | | member reaches a total of 30 years of creditable |
| | | 09800HB1165ham003 | - 67 - | LRB098 08854 EFG 41971 a |
|
| 1 | | service
and 2.3% of final average salary for each year | 2 | | of creditable service earned
on or after July 1, 1998 | 3 | | and after the member reaches a total of 30 years of
| 4 | | creditable service; and
| 5 | | For all other creditable service: 2.2% of final | 6 | | average salary
for each year of creditable service; or
| 7 | | (2) 1.5% of final average salary for each year of
| 8 | | creditable service plus the sum $7.50 for each of the | 9 | | first 20 years of
creditable service.
| 10 | | The amount of the retirement annuity determined under this | 11 | | paragraph (B)
shall be reduced by 1/2 of 1% for each month | 12 | | that the member is less than
age 60 at the time the | 13 | | retirement annuity begins. However, this reduction
shall | 14 | | not apply (i) if the member has at least 35 years of | 15 | | creditable service,
or (ii) if the member retires on | 16 | | account of disability under Section 16-149.2
of this | 17 | | Article with at least 20 years of creditable service, or | 18 | | (iii) if
the member (1) has earned during the period | 19 | | immediately preceding the last
day of service at least one | 20 | | year of contributing creditable service as an
employee of a | 21 | | department as defined in Section 14-103.04, (2) has earned | 22 | | at
least 5 years of contributing creditable service as an | 23 | | employee of a department
as defined in Section 14-103.04, | 24 | | (3) retires on or after January 1, 2001, and
(4) retires | 25 | | having attained an age which, when added to the number of | 26 | | years of
his or her total creditable service, equals at |
| | | 09800HB1165ham003 | - 68 - | LRB098 08854 EFG 41971 a |
|
| 1 | | least 85. Portions of years
shall be counted as decimal | 2 | | equivalents.
| 3 | | (b) For purposes of this Section, final average salary | 4 | | shall be the
average salary for the highest 4 consecutive years | 5 | | within the last 10 years
of creditable service as determined | 6 | | under rules of the board. The minimum
final average salary | 7 | | shall be considered to be $2,400 per year.
| 8 | | In the determination of final average salary for members | 9 | | other than
elected officials and their appointees when such | 10 | | appointees are allowed by
statute, that part of a member's | 11 | | salary for any year beginning after June
30, 1979 which exceeds | 12 | | the member's annual full-time salary rate with the
same | 13 | | employer for the preceding year by more than 20% shall be | 14 | | excluded.
The exclusion shall not apply in any year in which | 15 | | the member's creditable
earnings are less than 50% of the | 16 | | preceding year's mean salary for downstate
teachers as | 17 | | determined by the survey of school district salaries provided | 18 | | in
Section 2-3.103 of the School Code.
| 19 | | (c) In determining the amount of the retirement annuity | 20 | | under paragraph
(B) of this Section, a fractional year shall be | 21 | | granted proportional credit.
| 22 | | (d) The retirement annuity determined under paragraph (B) | 23 | | of this Section
shall be available only to members who render | 24 | | teaching service after July
1, 1947 for which member | 25 | | contributions are required, and to annuitants who
re-enter | 26 | | under the provisions of Section 16-150.
|
| | | 09800HB1165ham003 | - 69 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (e) The maximum retirement annuity provided under | 2 | | paragraph (B) of this
Section shall be 75% of final average | 3 | | salary.
| 4 | | (f) A member retiring after the effective date of this | 5 | | amendatory Act
of 1998 shall receive a pension equal to 75% of | 6 | | final average salary if the
member is qualified to receive a | 7 | | retirement annuity equal to at least 74.6%
of final average | 8 | | salary under this Article or as proportional annuities under
| 9 | | Article 20 of this Code.
| 10 | | (Source: P.A. 94-4, eff. 6-1-05.)
| 11 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| 12 | | Sec. 16-152. Contributions by members.
| 13 | | (a) Each member shall make contributions for membership | 14 | | service to this
System as follows:
| 15 | | (1) Effective July 1, 1998, contributions of 7.50% of | 16 | | salary towards the
cost of the retirement annuity. Such | 17 | | contributions shall be deemed "normal
contributions".
| 18 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% | 19 | | of salary toward
the cost of the automatic annual increase | 20 | | in retirement annuity provided
under Section 16-133.1.
| 21 | | (3) Effective July 24, 1959, contributions of 1% of | 22 | | salary towards the
cost of survivor benefits. Such | 23 | | contributions shall not be credited to
the individual | 24 | | account of the member and shall not be subject to refund
| 25 | | except as provided under Section 16-143.2.
|
| | | 09800HB1165ham003 | - 70 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (4) Effective July 1, 2005, contributions of 0.40% of | 2 | | salary toward the cost of the early retirement without | 3 | | discount option provided under Section 16-133.2. This | 4 | | contribution shall cease upon termination of the early | 5 | | retirement without discount option as provided in Section | 6 | | 16-176.
| 7 | | (a-5) In addition to the contributions otherwise required | 8 | | under this Article, each Tier I participant shall also make the | 9 | | following contributions toward the cost of his or her | 10 | | retirement annuity from each payment
of salary received by him | 11 | | or her for service as a member: | 12 | | (1) beginning July 1, 2013 and through June 30, 2014, | 13 | | 1% of salary; and | 14 | | (2) beginning on July 1, 2014, 2% of salary. | 15 | | Except as otherwise specified, these contributions are to | 16 | | be considered as normal contributions for purposes
of this | 17 | | Article. | 18 | | (b) The minimum required contribution for any year of | 19 | | full-time
teaching service shall be $192.
| 20 | | (c) Contributions shall not be required of any annuitant | 21 | | receiving
a retirement annuity who is given employment as | 22 | | permitted under Section 16-118 or 16-150.1.
| 23 | | (d) A person who (i) was a member before July 1, 1998, (ii) | 24 | | retires with
more than 34 years of creditable service, and | 25 | | (iii) does not elect to qualify
for the augmented rate under | 26 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
| | | 09800HB1165ham003 | - 71 - | LRB098 08854 EFG 41971 a |
|
| 1 | | to receive a partial refund of contributions made under this
| 2 | | Section for service occurring after the later of June 30, 1998 | 3 | | or attainment
of 34 years of creditable service, in an amount | 4 | | equal to 1.00% of the salary
upon which those contributions | 5 | | were based.
| 6 | | (e) A member's contributions toward the cost of early | 7 | | retirement without discount made under item (a)(4) of this | 8 | | Section shall not be refunded if the member has elected early | 9 | | retirement without discount under Section 16-133.2 and has | 10 | | begun to receive a retirement annuity under this Article | 11 | | calculated in accordance with that election. Otherwise, a | 12 | | member's contributions toward the cost of early retirement | 13 | | without discount made under item (a)(4) of this Section shall | 14 | | be refunded according to whichever one of the following | 15 | | circumstances occurs first: | 16 | | (1) The contributions shall be refunded to the member, | 17 | | without interest, within 120 days after the member's | 18 | | retirement annuity commences, if the member does not elect | 19 | | early retirement without discount under Section 16-133.2. | 20 | | (2) The contributions shall be included, without | 21 | | interest, in any refund claimed by the member under Section | 22 | | 16-151. | 23 | | (3) The contributions shall be refunded to the member's | 24 | | designated beneficiary (or if there is no beneficiary, to | 25 | | the member's estate), without interest, if the member dies | 26 | | without having begun to receive a retirement annuity under |
| | | 09800HB1165ham003 | - 72 - | LRB098 08854 EFG 41971 a |
|
| 1 | | this Article. | 2 | | (4) The contributions shall be refunded to the member, | 3 | | without interest, within 120 days after the early | 4 | | retirement without discount option provided under Section | 5 | | 16-133.2 is terminated under Section 16-176.
| 6 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| 7 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 8 | | Sec. 16-158. Contributions by State and other employing | 9 | | units.
| 10 | | (a) The State shall make contributions to the System by | 11 | | means of
appropriations from the Common School Fund and other | 12 | | State funds of amounts
which, together with other employer | 13 | | contributions, employee contributions,
investment income, and | 14 | | other income, will be sufficient to meet the cost of
| 15 | | maintaining and administering the System on a 100% 90% funded | 16 | | basis in accordance
with actuarial recommendations.
| 17 | | The Board shall determine the amount of State contributions | 18 | | required for
each fiscal year on the basis of the actuarial | 19 | | tables and other assumptions
adopted by the Board and the | 20 | | recommendations of the actuary, using the formula
in subsection | 21 | | (b-3).
| 22 | | (a-1) Annually, on or before November 15 until November 15, | 23 | | 2011, the Board shall certify to the
Governor the amount of the | 24 | | required State contribution for the coming fiscal
year. The | 25 | | certification under this subsection (a-1) shall include a copy |
| | | 09800HB1165ham003 | - 73 - | LRB098 08854 EFG 41971 a |
|
| 1 | | of the actuarial recommendations
upon which it is based and | 2 | | shall specifically identify the System's projected State | 3 | | normal cost for that fiscal year.
| 4 | | On or before May 1, 2004, 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 2005, taking | 7 | | into account the amounts appropriated to and
received by the | 8 | | System under subsection (d) of Section 7.2 of the General
| 9 | | Obligation Bond Act.
| 10 | | On or before July 1, 2005, the Board shall recalculate and | 11 | | recertify
to the Governor the amount of the required State
| 12 | | contribution to the System for State fiscal year 2006, taking | 13 | | into account the changes in required State contributions made | 14 | | by this amendatory Act of the 94th General Assembly.
| 15 | | On or before April 1, 2011, the Board shall recalculate and | 16 | | recertify to the Governor the amount of the required State | 17 | | contribution to the System for State fiscal year 2011, applying | 18 | | the changes made by Public Act 96-889 to the System's assets | 19 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 20 | | was approved on that date. | 21 | | (a-5) On or before November 1 of each year, beginning | 22 | | November 1, 2012, the Board shall submit to the State Actuary, | 23 | | the Governor, and the General Assembly a proposed certification | 24 | | of the amount of the required State contribution to the System | 25 | | for the next fiscal year, along with all of the actuarial | 26 | | assumptions, calculations, and data upon which that proposed |
| | | 09800HB1165ham003 | - 74 - | LRB098 08854 EFG 41971 a |
|
| 1 | | certification is based. On or before January 1 of each year, | 2 | | beginning January 1, 2013, the State Actuary shall issue a | 3 | | preliminary report concerning the proposed certification and | 4 | | identifying, if necessary, recommended changes in actuarial | 5 | | assumptions that the Board must consider before finalizing its | 6 | | certification of the required State contributions. On or before | 7 | | January 15, 2013 and each January 15 thereafter, the Board | 8 | | shall certify to the Governor and the General Assembly the | 9 | | amount of the required State contribution for the next fiscal | 10 | | year. The Board's certification must note any deviations from | 11 | | the State Actuary's recommended changes, the reason or reasons | 12 | | for not following the State Actuary's recommended changes, and | 13 | | the fiscal impact of not following the State Actuary's | 14 | | recommended changes on the required State contribution. | 15 | | (b) Through State fiscal year 1995, the State contributions | 16 | | shall be
paid to the System in accordance with Section 18-7 of | 17 | | the School Code.
| 18 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 19 | | of each month,
or as soon thereafter as may be practicable, the | 20 | | Board shall submit vouchers
for payment of State contributions | 21 | | to the System, in a total monthly amount of
one-twelfth of the | 22 | | required annual State contribution certified under
subsection | 23 | | (a-1).
From the
effective date of this amendatory Act of the | 24 | | 93rd General Assembly
through June 30, 2004, the Board shall | 25 | | not submit vouchers for the
remainder of fiscal year 2004 in | 26 | | excess of the fiscal year 2004
certified contribution amount |
| | | 09800HB1165ham003 | - 75 - | LRB098 08854 EFG 41971 a |
|
| 1 | | determined under this Section
after taking into consideration | 2 | | the transfer to the System
under subsection (a) of Section | 3 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 4 | | the State Comptroller and
Treasurer by warrants drawn on the | 5 | | funds appropriated to the System for that
fiscal year.
| 6 | | If in any month the amount remaining unexpended from all | 7 | | other appropriations
to the System for the applicable fiscal | 8 | | year (including the appropriations to
the System under Section | 9 | | 8.12 of the State Finance Act and Section 1 of the
State | 10 | | Pension Funds Continuing Appropriation Act) is less than the | 11 | | amount
lawfully vouchered under this subsection, the | 12 | | difference shall be paid from the
Common School Fund under the | 13 | | continuing appropriation authority provided in
Section 1.1 of | 14 | | the State Pension Funds Continuing Appropriation Act.
| 15 | | (b-2) Allocations from the Common School Fund apportioned | 16 | | to school
districts not coming under this System shall not be | 17 | | diminished or affected by
the provisions of this Article.
| 18 | | (b-3) For State fiscal years 2015 through 2045, the minimum | 19 | | contribution
to the System to be made by the State for each | 20 | | fiscal year shall be an amount
determined by the System to be | 21 | | sufficient to bring the total assets of the
System up to 100% | 22 | | of the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2045. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a | 25 | | level percentage of payroll
over the years remaining to and | 26 | | including fiscal year 2045 and shall be
determined under the |
| | | 09800HB1165ham003 | - 76 - | LRB098 08854 EFG 41971 a |
|
| 1 | | projected unit credit actuarial cost method. | 2 | | For State fiscal years 2012 through 2014 2045 , the minimum | 3 | | contribution
to the System to be made by the State for each | 4 | | fiscal year shall be an amount
determined by the System to be | 5 | | sufficient to bring the total assets of the
System up to 90% of | 6 | | the total actuarial liabilities of the System by the end of
| 7 | | State fiscal year 2045. In making these determinations, the | 8 | | required State
contribution shall be calculated each year as a | 9 | | level percentage of payroll
over the years remaining to and | 10 | | including fiscal year 2045 and shall be
determined under the | 11 | | projected unit credit actuarial cost method.
| 12 | | For State fiscal years 1996 through 2005, the State | 13 | | contribution to the
System, as a percentage of the applicable | 14 | | employee payroll, shall be increased
in equal annual increments | 15 | | so that by State fiscal year 2011, the State is
contributing at | 16 | | the rate required under this Section; except that in the
| 17 | | following specified State fiscal years, the State contribution | 18 | | to the System
shall not be less than the following indicated | 19 | | percentages of the applicable
employee payroll, even if the | 20 | | indicated percentage will produce a State
contribution in | 21 | | excess of the amount otherwise required under this subsection
| 22 | | and subsection (a), and notwithstanding any contrary | 23 | | certification made under
subsection (a-1) before the effective | 24 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 25 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 26 | | 2003; and
13.56% in FY 2004.
|
| | | 09800HB1165ham003 | - 77 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution for State fiscal year 2006 is | 3 | | $534,627,700.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2007 is | 6 | | $738,014,500.
| 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 | | $2,089,268,000 and shall be made from the proceeds of bonds | 16 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 17 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 18 | | expenses determined by the System's share of total bond | 19 | | proceeds, (ii) any amounts received from the Common School Fund | 20 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 21 | | due to the issuance of discounted bonds, if applicable. | 22 | | Notwithstanding any other provision of this Article, the
| 23 | | total required State contribution for State fiscal year 2011 is
| 24 | | the amount recertified by the System on or before April 1, 2011 | 25 | | pursuant to subsection (a-1) of this Section and shall be made | 26 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
| | | 09800HB1165ham003 | - 78 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 2 | | pro rata share of bond sale
expenses determined by the System's | 3 | | share of total bond
proceeds, (ii) any amounts received from | 4 | | the Common School Fund
in fiscal year 2011, and (iii) any | 5 | | reduction in bond proceeds
due to the issuance of discounted | 6 | | bonds, if applicable. This amount shall include, in addition to | 7 | | the amount certified by the System, an amount necessary to meet | 8 | | employer contributions required by the State as an employer | 9 | | under paragraph (e) of this Section, which may also be used by | 10 | | the System for contributions required by paragraph (a) of | 11 | | Section 16-127. | 12 | | Beginning in State fiscal year 2046, the minimum State | 13 | | contribution for
each fiscal year shall be the amount needed to | 14 | | maintain the total assets of
the System at 90% of the total | 15 | | actuarial liabilities of the System.
| 16 | | Amounts received by the System pursuant to Section 25 of | 17 | | the Budget Stabilization Act or Section 8.12 of the State | 18 | | Finance Act in any fiscal year do not reduce and do not | 19 | | constitute payment of any portion of the minimum State | 20 | | contribution required under this Article in that fiscal year. | 21 | | Such amounts shall not reduce, and shall not be included in the | 22 | | calculation of, the required State contributions under this | 23 | | Article in any future year until the System has reached a | 24 | | funding ratio of at least 100% 90% . A reference in this Article | 25 | | to the "required State contribution" or any substantially | 26 | | similar term does not include or apply to any amounts payable |
| | | 09800HB1165ham003 | - 79 - | LRB098 08854 EFG 41971 a |
|
| 1 | | to the System under Section 25 of the Budget Stabilization Act. | 2 | | Notwithstanding any other provision of this Code or the | 3 | | Budget Stabilization Act, amounts transferred to the System | 4 | | pursuant to the Budget Stabilization Act after the effective | 5 | | date of this amendatory Act of the 98th General Assembly do not | 6 | | reduce and do not constitute payment of any portion of the | 7 | | required State contribution under this Article in that fiscal | 8 | | year. Such amounts shall not reduce, and shall not be included | 9 | | in the calculation of, the required State contributions under | 10 | | this Article in any future year until the System has received | 11 | | payment of contributions pursuant to the Budget Stabilization | 12 | | Act. | 13 | | Notwithstanding any other provision of this Section, the | 14 | | required State
contribution for State fiscal year 2005 and for | 15 | | fiscal year 2008 and each fiscal year thereafter through State | 16 | | fiscal year 2014 , as
calculated under this Section and
| 17 | | certified under subsection (a-1), shall not exceed an amount | 18 | | equal to (i) the
amount of the required State contribution that | 19 | | would have been calculated under
this Section for that fiscal | 20 | | year if the System had not received any payments
under | 21 | | subsection (d) of Section 7.2 of the General Obligation Bond | 22 | | Act, minus
(ii) the portion of the State's total debt service | 23 | | payments for that fiscal
year on the bonds issued in fiscal | 24 | | year 2003 for the purposes of that Section 7.2, as determined
| 25 | | and certified by the Comptroller, that is the same as the | 26 | | System's portion of
the total moneys distributed under |
| | | 09800HB1165ham003 | - 80 - | LRB098 08854 EFG 41971 a |
|
| 1 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 2 | | Act. In determining this maximum for State fiscal years 2008 | 3 | | through 2010, however, the amount referred to in item (i) shall | 4 | | be increased, as a percentage of the applicable employee | 5 | | payroll, in equal increments calculated from the sum of the | 6 | | required State contribution for State fiscal year 2007 plus the | 7 | | applicable portion of the State's total debt service payments | 8 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 9 | | for the purposes of Section 7.2 of the General
Obligation Bond | 10 | | Act, so that, by State fiscal year 2011, the
State is | 11 | | contributing at the rate otherwise required under this Section.
| 12 | | (c) Payment of the required State contributions and of all | 13 | | pensions,
retirement annuities, death benefits, refunds, and | 14 | | other benefits granted
under or assumed by this System, and all | 15 | | expenses in connection with the
administration and operation | 16 | | thereof, are obligations of the State.
| 17 | | If members are paid from special trust or federal funds | 18 | | which are
administered by the employing unit, whether school | 19 | | district or other
unit, the employing unit shall pay to the | 20 | | System from such
funds the full accruing retirement costs based | 21 | | upon that
service, as determined by the System. Employer | 22 | | contributions, based on
salary paid to members from federal | 23 | | funds, may be forwarded by the distributing
agency of the State | 24 | | of Illinois to the System prior to allocation, in an
amount | 25 | | determined in accordance with guidelines established by such
| 26 | | agency and the System.
|
| | | 09800HB1165ham003 | - 81 - | LRB098 08854 EFG 41971 a |
|
| 1 | | (d) Effective July 1, 1986, any employer of a teacher as | 2 | | defined in
paragraph (8) of Section 16-106 shall pay the | 3 | | employer's normal cost
of benefits based upon the teacher's | 4 | | service, in addition to
employee contributions, as determined | 5 | | by the System. Such employer
contributions shall be forwarded | 6 | | monthly in accordance with guidelines
established by the | 7 | | System.
| 8 | | However, with respect to benefits granted under Section | 9 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 10 | | of Section 16-106, the
employer's contribution shall be 12% | 11 | | (rather than 20%) of the member's
highest annual salary rate | 12 | | for each year of creditable service granted, and
the employer | 13 | | shall also pay the required employee contribution on behalf of
| 14 | | the teacher. For the purposes of Sections 16-133.4 and | 15 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 16 | | 16-106 who is serving in that capacity
while on leave of | 17 | | absence from another employer under this Article shall not
be | 18 | | considered an employee of the employer from which the teacher | 19 | | is on leave.
| 20 | | (e) Beginning July 1, 1998, every employer of a teacher
| 21 | | shall pay to the System an employer contribution computed as | 22 | | follows:
| 23 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 24 | | employer
contribution shall be equal to 0.3% of each | 25 | | teacher's salary.
| 26 | | (2) Beginning July 1, 1999 and thereafter, the employer
|
| | | 09800HB1165ham003 | - 82 - | LRB098 08854 EFG 41971 a |
|
| 1 | | contribution shall be equal to 0.58% of each teacher's | 2 | | salary.
| 3 | | The school district or other employing unit may pay these | 4 | | employer
contributions out of any source of funding available | 5 | | for that purpose and
shall forward the contributions to the | 6 | | System on the schedule established
for the payment of member | 7 | | contributions.
| 8 | | These employer contributions are intended to offset a | 9 | | portion of the cost
to the System of the increases in | 10 | | retirement benefits resulting from this
amendatory Act of 1998.
| 11 | | Each employer of teachers is entitled to a credit against | 12 | | the contributions
required under this subsection (e) with | 13 | | respect to salaries paid to teachers
for the period January 1, | 14 | | 2002 through June 30, 2003, equal to the amount paid
by that | 15 | | employer under subsection (a-5) of Section 6.6 of the State | 16 | | Employees
Group Insurance Act of 1971 with respect to salaries | 17 | | paid to teachers for that
period.
| 18 | | The additional 1% employee contribution required under | 19 | | Section 16-152 by
this amendatory Act of 1998 is the | 20 | | responsibility of the teacher and not the
teacher's employer, | 21 | | unless the employer agrees, through collective bargaining
or | 22 | | otherwise, to make the contribution on behalf of the teacher.
| 23 | | If an employer is required by a contract in effect on May | 24 | | 1, 1998 between the
employer and an employee organization to | 25 | | pay, on behalf of all its full-time
employees
covered by this | 26 | | Article, all mandatory employee contributions required under
|
| | | 09800HB1165ham003 | - 83 - | LRB098 08854 EFG 41971 a |
|
| 1 | | this Article, then the employer shall be excused from paying | 2 | | the employer
contribution required under this subsection (e) | 3 | | for the balance of the term
of that contract. The employer and | 4 | | the employee organization shall jointly
certify to the System | 5 | | the existence of the contractual requirement, in such
form as | 6 | | the System may prescribe. This exclusion shall cease upon the
| 7 | | termination, extension, or renewal of the contract at any time | 8 | | after May 1,
1998.
| 9 | | (f) If the amount of a teacher's salary for any school year | 10 | | used to determine final average salary exceeds the member's | 11 | | annual full-time salary rate with the same employer for the | 12 | | previous school year by more than 6%, the teacher's employer | 13 | | shall pay to the System, in addition to all other payments | 14 | | required under this Section and in accordance with guidelines | 15 | | established by the System, the present value of the increase in | 16 | | benefits resulting from the portion of the increase in salary | 17 | | that is in excess of 6%. This present value shall be computed | 18 | | by the System on the basis of the actuarial assumptions and | 19 | | tables used in the most recent actuarial valuation of the | 20 | | System that is available at the time of the computation. If a | 21 | | teacher's salary for the 2005-2006 school year is used to | 22 | | determine final average salary under this subsection (f), then | 23 | | the changes made to this subsection (f) by Public Act 94-1057 | 24 | | shall apply in calculating whether the increase in his or her | 25 | | salary is in excess of 6%. For the purposes of this Section, | 26 | | change in employment under Section 10-21.12 of the School Code |
| | | 09800HB1165ham003 | - 84 - | LRB098 08854 EFG 41971 a |
|
| 1 | | on or after June 1, 2005 shall constitute a change in employer. | 2 | | The System may require the employer to provide any pertinent | 3 | | information or documentation.
The changes made to this | 4 | | subsection (f) by this amendatory Act of the 94th General | 5 | | Assembly apply without regard to whether the teacher was in | 6 | | service on or after its effective date.
| 7 | | Whenever it determines that a payment is or may be required | 8 | | under this subsection, the System shall calculate the amount of | 9 | | the payment and bill the employer for that amount. The bill | 10 | | shall specify the calculations used to determine the amount | 11 | | due. If the employer disputes the amount of the bill, it may, | 12 | | within 30 days after receipt of the bill, apply to the System | 13 | | in writing for a recalculation. The application must specify in | 14 | | detail the grounds of the dispute and, if the employer asserts | 15 | | that the calculation is subject to subsection (g) or (h) of | 16 | | this Section, must include an affidavit setting forth and | 17 | | attesting to all facts within the employer's knowledge that are | 18 | | pertinent to the applicability of that subsection. Upon | 19 | | receiving a timely application for recalculation, the System | 20 | | shall review the application and, if appropriate, recalculate | 21 | | the amount due.
| 22 | | The employer contributions required under this subsection | 23 | | (f) may be paid in the form of a lump sum within 90 days after | 24 | | receipt of the bill. If the employer contributions are not paid | 25 | | within 90 days after receipt of the bill, then interest will be | 26 | | charged at a rate equal to the System's annual actuarially |
| | | 09800HB1165ham003 | - 85 - | LRB098 08854 EFG 41971 a |
|
| 1 | | assumed rate of return on investment compounded annually from | 2 | | the 91st day after receipt of the bill. Payments must be | 3 | | concluded within 3 years after the employer's receipt of the | 4 | | bill.
| 5 | | (g) This subsection (g) applies only to payments made or | 6 | | salary increases given on or after June 1, 2005 but before July | 7 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 8 | | require the System to refund any payments received before
July | 9 | | 31, 2006 (the effective date of Public Act 94-1057). | 10 | | When assessing payment for any amount due under subsection | 11 | | (f), the System shall exclude salary increases paid to teachers | 12 | | under contracts or collective bargaining agreements entered | 13 | | into, amended, or renewed before June 1, 2005.
| 14 | | When assessing payment for any amount due under subsection | 15 | | (f), the System shall exclude salary increases paid to a | 16 | | teacher at a time when the teacher is 10 or more years from | 17 | | retirement eligibility under Section 16-132 or 16-133.2.
| 18 | | When assessing payment for any amount due under subsection | 19 | | (f), the System shall exclude salary increases resulting from | 20 | | overload work, including summer school, when the school | 21 | | district has certified to the System, and the System has | 22 | | approved the certification, that (i) the overload work is for | 23 | | the sole purpose of classroom instruction in excess of the | 24 | | standard number of classes for a full-time teacher in a school | 25 | | district during a school year and (ii) the salary increases are | 26 | | equal to or less than the rate of pay for classroom instruction |
| | | 09800HB1165ham003 | - 86 - | LRB098 08854 EFG 41971 a |
|
| 1 | | computed on the teacher's current salary and work schedule.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (f), the System shall exclude a salary increase resulting from | 4 | | a promotion (i) for which the employee is required to hold a | 5 | | certificate or supervisory endorsement issued by the State | 6 | | Teacher Certification Board that is a different certification | 7 | | or supervisory endorsement than is required for the teacher's | 8 | | previous position and (ii) to a position that has existed and | 9 | | been filled by a member for no less than one complete academic | 10 | | year and the salary increase from the promotion is an increase | 11 | | that results in an amount no greater than the lesser of the | 12 | | average salary paid for other similar positions in the district | 13 | | requiring the same certification or the amount stipulated in | 14 | | the collective bargaining agreement for a similar position | 15 | | requiring the same certification.
| 16 | | When assessing payment for any amount due under subsection | 17 | | (f), the System shall exclude any payment to the teacher from | 18 | | the State of Illinois or the State Board of Education over | 19 | | which the employer does not have discretion, notwithstanding | 20 | | that the payment is included in the computation of final | 21 | | average salary.
| 22 | | (h) When assessing payment for any amount due under | 23 | | subsection (f), the System shall exclude any salary increase | 24 | | described in subsection (g) of this Section given on or after | 25 | | July 1, 2011 but before July 1, 2014 under a contract or | 26 | | collective bargaining agreement entered into, amended, or |
| | | 09800HB1165ham003 | - 87 - | LRB098 08854 EFG 41971 a |
|
| 1 | | renewed on or after June 1, 2005 but before July 1, 2011. | 2 | | Notwithstanding any other provision of this Section, any | 3 | | payments made or salary increases given after June 30, 2014 | 4 | | shall be used in assessing payment for any amount due under | 5 | | subsection (f) of this Section.
| 6 | | (i) The System shall prepare a report and file copies of | 7 | | the report with the Governor and the General Assembly by | 8 | | January 1, 2007 that contains all of the following information: | 9 | | (1) The number of recalculations required by the | 10 | | changes made to this Section by Public Act 94-1057 for each | 11 | | employer. | 12 | | (2) The dollar amount by which each employer's | 13 | | contribution to the System was changed due to | 14 | | recalculations required by Public Act 94-1057. | 15 | | (3) The total amount the System received from each | 16 | | employer as a result of the changes made to this Section by | 17 | | Public Act 94-4. | 18 | | (4) The increase in the required State contribution | 19 | | resulting from the changes made to this Section by Public | 20 | | Act 94-1057.
| 21 | | (j) For purposes of determining the required State | 22 | | contribution to the System, the value of the System's assets | 23 | | shall be equal to the actuarial value of the System's assets, | 24 | | which shall be calculated as follows: | 25 | | As of June 30, 2008, the actuarial value of the System's | 26 | | assets shall be equal to the market value of the assets as of |
| | | 09800HB1165ham003 | - 88 - | LRB098 08854 EFG 41971 a |
|
| 1 | | that date. In determining the actuarial value of the System's | 2 | | assets for fiscal years after June 30, 2008, any actuarial | 3 | | gains or losses from investment return incurred in a fiscal | 4 | | year shall be recognized in equal annual amounts over the | 5 | | 5-year period following that fiscal year. | 6 | | (k) For purposes of determining the required State | 7 | | contribution to the system for a particular year, the actuarial | 8 | | value of assets shall be assumed to earn a rate of return equal | 9 | | to the system's actuarially assumed rate of return. | 10 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 11 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | 12 | | 6-18-12; 97-813, eff. 7-13-12.)
| 13 | | (40 ILCS 5/16-158.2 new) | 14 | | Sec. 16-158.2. Obligations of State; funding guarantee. | 15 | | Pursuant to Article XIII, Section 5 of the 1970 Constitution of | 16 | | the State of Illinois, beginning on July 1, 2013, the State | 17 | | shall, as a retirement benefit to each participant and | 18 | | annuitant of the System be contractually obligated to the | 19 | | System (as a fiduciary and trustee of the participants and | 20 | | annuitants) to pay the annual required State contribution, as | 21 | | determined by the Board of the System using generally accepted | 22 | | actuarial principles, as is necessary to bring the total assets | 23 | | of the System up to 100% of the total actuarial liabilities of | 24 | | the System by the end of State fiscal year 2045. As a further | 25 | | retirement benefit and contractual obligation, each fiscal |
| | | 09800HB1165ham003 | - 89 - | LRB098 08854 EFG 41971 a |
|
| 1 | | year, the State shall pay to each designated retirement system | 2 | | the annual required State contribution certified by the Board | 3 | | for that fiscal year. Payments of the annual required State | 4 | | contribution for each fiscal year shall be made in equal | 5 | | monthly installments. Additionally, beginning in fiscal year | 6 | | 2014, State transfers to the Pension Stabilization Fund | 7 | | pursuant to Section 20 of the Budget Stabilization Act and | 8 | | payments to the System pursuant to Section 25 of the Budget | 9 | | Stabilization Act shall be further retirement benefits and | 10 | | contractual obligations. The transfers and payments prescribed | 11 | | in Sections 20 and 25 of the Budget Stabilization Act shall not | 12 | | be used by the retirement system when calculation any pension | 13 | | payment until the System has reached a funded level of 100%. | 14 | | This Section and the security it provides to participants and | 15 | | annuitants is intended to be, and is, a contractual right that | 16 | | is part of the pension benefits provided to the participants | 17 | | and annuitants. Notwithstanding anything to the contrary in the | 18 | | Court of Claims Act or any other law, a designated retirement | 19 | | system has the exclusive right to and shall bring a mandamus | 20 | | action in the Circuit Court of Sangamon County against the | 21 | | State to compel the State to make any installment of the annual | 22 | | required State contribution required by this Section, | 23 | | irrespective of other remedies that may be available to the | 24 | | System. Each member or annuitant of the System has the right to | 25 | | in any judicial district in which the System maintains an | 26 | | office if the System fails to bring an action specified in this |
| | | 09800HB1165ham003 | - 90 - | LRB098 08854 EFG 41971 a |
|
| 1 | | Section, irrespective of other remedies that may be available | 2 | | to the member or annuitant. In making these determinations, the | 3 | | required State contribution shall be calculated each year as a | 4 | | level percentage of payroll over the years remaining to and | 5 | | including fiscal year 2045 and shall be determined under the | 6 | | projected unit credit actuarial cost method. | 7 | | Section 99. Effective date. This Act takes effect July 1, | 8 | | 2013.".
|
|