Full Text of SB0436 99th General Assembly
SB0436sam001 99TH GENERAL ASSEMBLY | Sen. Steve Stadelman Filed: 4/16/2015
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| 1 | | AMENDMENT TO SENATE BILL 436
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 436 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 16-158 as follows:
| 6 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 7 | | Sec. 16-158. Contributions by State and other employing | 8 | | units.
| 9 | | (a) The State shall make contributions to the System by | 10 | | means of
appropriations from the Common School Fund and other | 11 | | State funds of amounts
which, together with other employer | 12 | | contributions, employee contributions,
investment income, and | 13 | | other income, will be sufficient to meet the cost of
| 14 | | maintaining and administering the System on a 100% funded basis | 15 | | in accordance
with actuarial recommendations by the end of | 16 | | State fiscal year 2044.
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| 1 | | The Board shall determine the amount of State contributions | 2 | | required for
each fiscal year on the basis of the actuarial | 3 | | tables and other assumptions
adopted by the Board and the | 4 | | recommendations of the actuary, using the formula
in subsection | 5 | | (b-3).
| 6 | | (a-1) Annually, on or before November 15 through November | 7 | | 15, 2011, the Board shall certify to the
Governor the amount of | 8 | | the required State contribution for the coming fiscal
year. The | 9 | | certification under this subsection (a-1) shall include a copy | 10 | | of the actuarial recommendations
upon which it is based.
| 11 | | On or before May 1, 2004, the Board shall recalculate and | 12 | | recertify to
the Governor the amount of the required State | 13 | | contribution to the System for
State fiscal year 2005, taking | 14 | | into account the amounts appropriated to and
received by the | 15 | | System under subsection (d) of Section 7.2 of the General
| 16 | | Obligation Bond Act.
| 17 | | On or before July 1, 2005, the Board shall recalculate and | 18 | | recertify
to the Governor the amount of the required State
| 19 | | contribution to the System for State fiscal year 2006, taking | 20 | | into account the changes in required State contributions made | 21 | | by this amendatory Act of the 94th General Assembly.
| 22 | | On or before April 1, 2011, the Board shall recalculate and | 23 | | recertify to the Governor the amount of the required State | 24 | | contribution to the System for State fiscal year 2011, applying | 25 | | the changes made by Public Act 96-889 to the System's assets | 26 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
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| 1 | | was approved on that date. | 2 | | (a-5) On or before November 1 of each year, beginning | 3 | | November 1, 2012, the Board shall submit to the State Actuary, | 4 | | the Governor, and the General Assembly a proposed certification | 5 | | of the amount of the required State contribution to the System | 6 | | for the next fiscal year, along with all of the actuarial | 7 | | assumptions, calculations, and data upon which that proposed | 8 | | certification is based. On or before January 1 of each year, | 9 | | beginning January 1, 2013, the State Actuary shall issue a | 10 | | preliminary report concerning the proposed certification and | 11 | | identifying, if necessary, recommended changes in actuarial | 12 | | assumptions that the Board must consider before finalizing its | 13 | | certification of the required State contributions. | 14 | | On or before January 15, 2013 and each January 15 | 15 | | thereafter, the Board shall certify to the Governor and the | 16 | | General Assembly the amount of the required State contribution | 17 | | for the next fiscal year. The certification shall include a | 18 | | copy of the actuarial
recommendations upon which it is based | 19 | | and shall specifically identify the System's projected State | 20 | | normal cost for that fiscal year. The Board's certification | 21 | | must note any deviations from the State Actuary's recommended | 22 | | changes, the reason or reasons for not following the State | 23 | | Actuary's recommended changes, and the fiscal impact of not | 24 | | following the State Actuary's recommended changes on the | 25 | | required State contribution. | 26 | | (a-10) For purposes of Section (c-5) of Section 20 of the |
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| 1 | | Budget Stabilization Act, on or before November 1 of each year | 2 | | beginning November 1, 2014, the Board shall determine the | 3 | | amount of the State contribution to the System that would have | 4 | | been required for the next fiscal year if this amendatory Act | 5 | | of the 98th General Assembly had not taken effect, using the | 6 | | best and most recent available data but based on the law in | 7 | | effect on May 31, 2014. The Board shall submit to the State | 8 | | Actuary, the Governor, and the General Assembly a proposed | 9 | | certification, along with the relevant law, actuarial | 10 | | assumptions, calculations, and data upon which that | 11 | | certification is based. On or before January 1, 2015 and every | 12 | | January 1 thereafter, the State Actuary shall issue a | 13 | | preliminary report concerning the proposed certification and | 14 | | identifying, if necessary, recommended changes in actuarial | 15 | | assumptions that the Board must consider before finalizing its | 16 | | certification. On or before January 15, 2015 and every January | 17 | | 1 thereafter, the Board shall certify to the Governor and the | 18 | | General Assembly the amount of the State contribution to the | 19 | | System that would have been required for the next fiscal year | 20 | | if this amendatory Act of the 98th General Assembly had not | 21 | | taken effect, using the best and most recent available data but | 22 | | based on the law in effect on May 31, 2014. The Board's | 23 | | certification must note any deviations from the State Actuary's | 24 | | recommended changes, the reason or reasons for not following | 25 | | the State Actuary's recommended changes, and the impact of not | 26 | | following the State Actuary's recommended changes. |
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| 1 | | (b) Through State fiscal year 1995, the State contributions | 2 | | shall be
paid to the System in accordance with Section 18-7 of | 3 | | the School Code.
| 4 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 5 | | of each month,
or as soon thereafter as may be practicable, the | 6 | | Board shall submit vouchers
for payment of State contributions | 7 | | to the System, in a total monthly amount of
one-twelfth of the | 8 | | required annual State contribution certified under
subsection | 9 | | (a-1).
From the
effective date of this amendatory Act of the | 10 | | 93rd General Assembly
through June 30, 2004, the Board shall | 11 | | not submit vouchers for the
remainder of fiscal year 2004 in | 12 | | excess of the fiscal year 2004
certified contribution amount | 13 | | determined under this Section
after taking into consideration | 14 | | the transfer to the System
under subsection (a) of Section | 15 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 16 | | the State Comptroller and
Treasurer by warrants drawn on the | 17 | | funds appropriated to the System for that
fiscal year.
| 18 | | If in any month the amount remaining unexpended from all | 19 | | other appropriations
to the System for the applicable fiscal | 20 | | year (including the appropriations to
the System under Section | 21 | | 8.12 of the State Finance Act and Section 1 of the
State | 22 | | Pension Funds Continuing Appropriation Act) is less than the | 23 | | amount
lawfully vouchered under this subsection, the | 24 | | difference shall be paid from the
Common School Fund under the | 25 | | continuing appropriation authority provided in
Section 1.1 of | 26 | | the State Pension Funds Continuing Appropriation Act.
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| 1 | | (b-2) Allocations from the Common School Fund apportioned | 2 | | to school
districts not coming under this System shall not be | 3 | | diminished or affected by
the provisions of this Article.
| 4 | | (b-3) For State fiscal years 2015 through 2044, 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 | | equal to the sum of (1) the State's portion of the projected | 8 | | normal cost for that fiscal year, plus (2) an amount sufficient | 9 | | to 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 2044. In making these determinations, the required State
| 12 | | contribution shall be calculated each year as a level | 13 | | percentage of payroll
over the years remaining to and including | 14 | | fiscal year 2044 and shall be
determined under the projected | 15 | | unit cost method for fiscal year 2015 and under the entry age | 16 | | normal actuarial cost method for fiscal years 2016 through | 17 | | 2044. | 18 | | For State fiscal years 2012 through 2014, 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 90% of | 22 | | 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 |
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| 1 | | projected unit credit actuarial cost method.
| 2 | | For State fiscal years 1996 through 2005, the State | 3 | | contribution to the
System, as a percentage of the applicable | 4 | | employee payroll, shall be increased
in equal annual increments | 5 | | so that by State fiscal year 2011, the State is
contributing at | 6 | | the rate required under this Section; except that in the
| 7 | | following specified State fiscal years, the State contribution | 8 | | to the System
shall not be less than the following indicated | 9 | | percentages of the applicable
employee payroll, even if the | 10 | | indicated percentage will produce a State
contribution in | 11 | | excess of the amount otherwise required under this subsection
| 12 | | and subsection (a), and notwithstanding any contrary | 13 | | certification made under
subsection (a-1) before the effective | 14 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 15 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 16 | | 2003; and
13.56% in FY 2004.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State
contribution for State fiscal year 2006 is | 19 | | $534,627,700.
| 20 | | Notwithstanding any other provision of this Article, the | 21 | | total required State
contribution for State fiscal year 2007 is | 22 | | $738,014,500.
| 23 | | For each of State fiscal years 2008 through 2009, the State | 24 | | contribution to
the System, as a percentage of the applicable | 25 | | employee payroll, shall be
increased in equal annual increments | 26 | | from the required State contribution for State fiscal year |
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| 1 | | 2007, so that by State fiscal year 2011, the
State is | 2 | | contributing at the rate otherwise required under this Section.
| 3 | | Notwithstanding any other provision of this Article, the | 4 | | total required State contribution for State fiscal year 2010 is | 5 | | $2,089,268,000 and shall be made from the proceeds of bonds | 6 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 7 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 8 | | expenses determined by the System's share of total bond | 9 | | proceeds, (ii) any amounts received from the Common School Fund | 10 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 11 | | due to the issuance of discounted bonds, if applicable. | 12 | | Notwithstanding any other provision of this Article, the
| 13 | | total required State contribution for State fiscal year 2011 is
| 14 | | the amount recertified by the System on or before April 1, 2011 | 15 | | pursuant to subsection (a-1) of this Section and shall be made | 16 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 17 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 18 | | pro rata share of bond sale
expenses determined by the System's | 19 | | share of total bond
proceeds, (ii) any amounts received from | 20 | | the Common School Fund
in fiscal year 2011, and (iii) any | 21 | | reduction in bond proceeds
due to the issuance of discounted | 22 | | bonds, if applicable. This amount shall include, in addition to | 23 | | the amount certified by the System, an amount necessary to meet | 24 | | employer contributions required by the State as an employer | 25 | | under paragraph (e) of this Section, which may also be used by | 26 | | the System for contributions required by paragraph (a) of |
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| 1 | | Section 16-127. | 2 | | Beginning in State fiscal year 2045, the minimum State | 3 | | contribution for each fiscal year shall be the amount needed to | 4 | | maintain the total assets of the System at 100% 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%. A reference in this Article to | 15 | | the "required State contribution" or any substantially similar | 16 | | term does not include or apply to any amounts payable to the | 17 | | System under Section 25 of the Budget Stabilization Act. | 18 | | Notwithstanding any other provision of this Section, the | 19 | | required State
contribution for State fiscal year 2005 and for | 20 | | fiscal year 2008 and each fiscal year thereafter through State | 21 | | fiscal year 2014, as
calculated under this Section and
| 22 | | certified under subsection (a-1), shall not exceed an amount | 23 | | equal to (i) the
amount of the required State contribution that | 24 | | would have been calculated under
this Section for that fiscal | 25 | | year if the System had not received any payments
under | 26 | | subsection (d) of Section 7.2 of the General Obligation Bond |
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| 1 | | Act, minus
(ii) the portion of the State's total debt service | 2 | | payments for that fiscal
year on the bonds issued in fiscal | 3 | | year 2003 for the purposes of that Section 7.2, as determined
| 4 | | and certified by the Comptroller, that is the same as the | 5 | | System's portion of
the total moneys distributed under | 6 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 7 | | Act. In determining this maximum for State fiscal years 2008 | 8 | | through 2010, however, the amount referred to in item (i) shall | 9 | | be increased, as a percentage of the applicable employee | 10 | | payroll, in equal increments calculated from the sum of the | 11 | | required State contribution for State fiscal year 2007 plus the | 12 | | applicable portion of the State's total debt service payments | 13 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 14 | | for the purposes of Section 7.2 of the General
Obligation Bond | 15 | | Act, so that, by State fiscal year 2011, the
State is | 16 | | contributing at the rate otherwise required under this Section.
| 17 | | (c) Payment of the required State contributions and of all | 18 | | pensions,
retirement annuities, death benefits, refunds, and | 19 | | other benefits granted
under or assumed by this System, and all | 20 | | expenses in connection with the
administration and operation | 21 | | thereof, are obligations of the State.
| 22 | | If members are paid from special trust or federal funds | 23 | | which are
administered by the employing unit, whether school | 24 | | district or other
unit, the employing unit shall pay to the | 25 | | System from such
funds the full accruing retirement costs based | 26 | | upon that
service, which, beginning July 1, 2015 2014 , shall be |
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| 1 | | at a rate, expressed as a percentage of salary, equal to the | 2 | | total employer's minimum contribution
to the System to be made | 3 | | by the State for that fiscal year, including both normal cost | 4 | | and unfunded liability components , expressed as a percentage of | 5 | | payroll, as determined by the System under subsection (b-3) of | 6 | | this Section . Employer contributions, based on
salary paid to | 7 | | members from federal funds, may be forwarded by the | 8 | | distributing
agency of the State of Illinois to the System | 9 | | prior to allocation, in an
amount determined in accordance with | 10 | | guidelines established by such
agency and the System. Any | 11 | | contribution for fiscal year 2015 collected as a result of the | 12 | | change made by this amendatory Act of the 98th General Assembly | 13 | | shall be considered a State contribution under subsection (b-3) | 14 | | of this Section.
| 15 | | (d) Effective July 1, 1986, any employer of a teacher as | 16 | | defined in
paragraph (8) of Section 16-106 shall pay the | 17 | | employer's normal cost
of benefits based upon the teacher's | 18 | | service, in addition to
employee contributions, as determined | 19 | | by the System. Such employer
contributions shall be forwarded | 20 | | monthly in accordance with guidelines
established by the | 21 | | System.
| 22 | | However, with respect to benefits granted under Section | 23 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 24 | | of Section 16-106, the
employer's contribution shall be 12% | 25 | | (rather than 20%) of the member's
highest annual salary rate | 26 | | for each year of creditable service granted, and
the employer |
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| 1 | | shall also pay the required employee contribution on behalf of
| 2 | | the teacher. For the purposes of Sections 16-133.4 and | 3 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 4 | | 16-106 who is serving in that capacity
while on leave of | 5 | | absence from another employer under this Article shall not
be | 6 | | considered an employee of the employer from which the teacher | 7 | | is on leave.
| 8 | | (e) Beginning July 1, 1998, every employer of a teacher
| 9 | | shall pay to the System an employer contribution computed as | 10 | | follows:
| 11 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 12 | | employer
contribution shall be equal to 0.3% of each | 13 | | teacher's salary.
| 14 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 15 | | contribution shall be equal to 0.58% of each teacher's | 16 | | salary.
| 17 | | The school district or other employing unit may pay these | 18 | | employer
contributions out of any source of funding available | 19 | | for that purpose and
shall forward the contributions to the | 20 | | System on the schedule established
for the payment of member | 21 | | contributions.
| 22 | | These employer contributions are intended to offset a | 23 | | portion of the cost
to the System of the increases in | 24 | | retirement benefits resulting from this
amendatory Act of 1998.
| 25 | | Each employer of teachers is entitled to a credit against | 26 | | the contributions
required under this subsection (e) with |
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| 1 | | respect to salaries paid to teachers
for the period January 1, | 2 | | 2002 through June 30, 2003, equal to the amount paid
by that | 3 | | employer under subsection (a-5) of Section 6.6 of the State | 4 | | Employees
Group Insurance Act of 1971 with respect to salaries | 5 | | paid to teachers for that
period.
| 6 | | The additional 1% employee contribution required under | 7 | | Section 16-152 by
this amendatory Act of 1998 is the | 8 | | responsibility of the teacher and not the
teacher's employer, | 9 | | unless the employer agrees, through collective bargaining
or | 10 | | otherwise, to make the contribution on behalf of the teacher.
| 11 | | If an employer is required by a contract in effect on May | 12 | | 1, 1998 between the
employer and an employee organization to | 13 | | pay, on behalf of all its full-time
employees
covered by this | 14 | | Article, all mandatory employee contributions required under
| 15 | | this Article, then the employer shall be excused from paying | 16 | | the employer
contribution required under this subsection (e) | 17 | | for the balance of the term
of that contract. The employer and | 18 | | the employee organization shall jointly
certify to the System | 19 | | the existence of the contractual requirement, in such
form as | 20 | | the System may prescribe. This exclusion shall cease upon the
| 21 | | termination, extension, or renewal of the contract at any time | 22 | | after May 1,
1998.
| 23 | | (f) If the amount of a teacher's salary for any school year | 24 | | used to determine final average salary exceeds the member's | 25 | | annual full-time salary rate with the same employer for the | 26 | | previous school year by more than 6%, the teacher's employer |
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| 1 | | shall pay to the System, in addition to all other payments | 2 | | required under this Section and in accordance with guidelines | 3 | | established by the System, the present value of the increase in | 4 | | benefits resulting from the portion of the increase in salary | 5 | | that is in excess of 6%. This present value shall be computed | 6 | | by the System on the basis of the actuarial assumptions and | 7 | | tables used in the most recent actuarial valuation of the | 8 | | System that is available at the time of the computation. If a | 9 | | teacher's salary for the 2005-2006 school year is used to | 10 | | determine final average salary under this subsection (f), then | 11 | | the changes made to this subsection (f) by Public Act 94-1057 | 12 | | shall apply in calculating whether the increase in his or her | 13 | | salary is in excess of 6%. For the purposes of this Section, | 14 | | change in employment under Section 10-21.12 of the School Code | 15 | | on or after June 1, 2005 shall constitute a change in employer. | 16 | | The System may require the employer to provide any pertinent | 17 | | information or documentation.
The changes made to this | 18 | | subsection (f) by this amendatory Act of the 94th General | 19 | | Assembly apply without regard to whether the teacher was in | 20 | | service on or after its effective date.
| 21 | | Whenever it determines that a payment is or may be required | 22 | | under this subsection, the System shall calculate the amount of | 23 | | the payment and bill the employer for that amount. The bill | 24 | | shall specify the calculations used to determine the amount | 25 | | due. If the employer disputes the amount of the bill, it may, | 26 | | within 30 days after receipt of the bill, apply to the System |
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| 1 | | in writing for a recalculation. The application must specify in | 2 | | detail the grounds of the dispute and, if the employer asserts | 3 | | that the calculation is subject to subsection (g) or (h) of | 4 | | this Section, must include an affidavit setting forth and | 5 | | attesting to all facts within the employer's knowledge that are | 6 | | pertinent to the applicability of that subsection. Upon | 7 | | receiving a timely application for recalculation, the System | 8 | | shall review the application and, if appropriate, recalculate | 9 | | the amount due.
| 10 | | The employer contributions required under this subsection | 11 | | (f) may be paid in the form of a lump sum within 90 days after | 12 | | receipt of the bill. If the employer contributions are not paid | 13 | | within 90 days after receipt of the bill, then interest will be | 14 | | charged at a rate equal to the System's annual actuarially | 15 | | assumed rate of return on investment compounded annually from | 16 | | the 91st day after receipt of the bill. Payments must be | 17 | | concluded within 3 years after the employer's receipt of the | 18 | | bill.
| 19 | | (g) This subsection (g) applies only to payments made or | 20 | | salary increases given on or after June 1, 2005 but before July | 21 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 22 | | require the System to refund any payments received before
July | 23 | | 31, 2006 (the effective date of Public Act 94-1057). | 24 | | When assessing payment for any amount due under subsection | 25 | | (f), the System shall exclude salary increases paid to teachers | 26 | | under contracts or collective bargaining agreements entered |
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| 1 | | into, amended, or renewed before June 1, 2005.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (f), the System shall exclude salary increases paid to a | 4 | | teacher at a time when the teacher is 10 or more years from | 5 | | retirement eligibility under Section 16-132 or 16-133.2.
| 6 | | When assessing payment for any amount due under subsection | 7 | | (f), the System shall exclude salary increases resulting from | 8 | | overload work, including summer school, when the school | 9 | | district has certified to the System, and the System has | 10 | | approved the certification, that (i) the overload work is for | 11 | | the sole purpose of classroom instruction in excess of the | 12 | | standard number of classes for a full-time teacher in a school | 13 | | district during a school year and (ii) the salary increases are | 14 | | equal to or less than the rate of pay for classroom instruction | 15 | | computed on the teacher's current salary and work schedule.
| 16 | | When assessing payment for any amount due under subsection | 17 | | (f), the System shall exclude a salary increase resulting from | 18 | | a promotion (i) for which the employee is required to hold a | 19 | | certificate or supervisory endorsement issued by the State | 20 | | Teacher Certification Board that is a different certification | 21 | | or supervisory endorsement than is required for the teacher's | 22 | | previous position and (ii) to a position that has existed and | 23 | | been filled by a member for no less than one complete academic | 24 | | year and the salary increase from the promotion is an increase | 25 | | that results in an amount no greater than the lesser of the | 26 | | average salary paid for other similar positions in the district |
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| 1 | | requiring the same certification or the amount stipulated in | 2 | | the collective bargaining agreement for a similar position | 3 | | requiring the same certification.
| 4 | | When assessing payment for any amount due under subsection | 5 | | (f), the System shall exclude any payment to the teacher from | 6 | | the State of Illinois or the State Board of Education over | 7 | | which the employer does not have discretion, notwithstanding | 8 | | that the payment is included in the computation of final | 9 | | average salary.
| 10 | | (h) When assessing payment for any amount due under | 11 | | subsection (f), the System shall exclude any salary increase | 12 | | described in subsection (g) 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 (f) of this Section.
| 20 | | (i) 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 |
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| 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 | | (j) For purposes of determining the required State | 10 | | contribution to the System, the value of the System's assets | 11 | | shall be equal to the actuarial value of the System's assets, | 12 | | which shall be calculated as follows: | 13 | | As of June 30, 2008, the actuarial value of the System's | 14 | | assets shall be equal to the market value of the assets as of | 15 | | that date. In determining the actuarial value of the System's | 16 | | assets for fiscal years after June 30, 2008, any actuarial | 17 | | gains or losses from investment return incurred in a fiscal | 18 | | year shall be recognized in equal annual amounts over the | 19 | | 5-year period following that fiscal year. | 20 | | (k) For purposes of determining the required State | 21 | | contribution to the system for a particular year, the actuarial | 22 | | value of assets shall be assumed to earn a rate of return equal | 23 | | to the system's actuarially assumed rate of return. | 24 | | (Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12; | 25 | | 98-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.".
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