Illinois General Assembly - Full Text of SB1646
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Full Text of SB1646  102nd General Assembly

SB1646ham002 102ND GENERAL ASSEMBLY

Rep. Michael T. Marron

Filed: 5/7/2021

 

 


 

 


 
10200SB1646ham002LRB102 15392 SMS 26215 a

1
AMENDMENT TO SENATE BILL 1646

2    AMENDMENT NO. ______. Amend Senate Bill 1646 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 16-127 and 16-158 as follows:
 
6    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
7    Sec. 16-127. Computation of creditable service.
8    (a) Each member shall receive regular credit for all
9service as a teacher from the date membership begins, for
10which satisfactory evidence is supplied and all contributions
11have been paid.
12    (b) The following periods of service shall earn optional
13credit and each member shall receive credit for all such
14service for which satisfactory evidence is supplied and all
15contributions have been paid as of the date specified:
16        (1) Prior service as a teacher.

 

 

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1        (2) Service in a capacity essentially similar or
2    equivalent to that of a teacher, in the public common
3    schools in school districts in this State not included
4    within the provisions of this System, or of any other
5    State, territory, dependency or possession of the United
6    States, or in schools operated by or under the auspices of
7    the United States, or under the auspices of any agency or
8    department of any other State, and service during any
9    period of professional speech correction or special
10    education experience for a public agency within this State
11    or any other State, territory, dependency or possession of
12    the United States, and service prior to February 1, 1951
13    as a recreation worker for the Illinois Department of
14    Public Safety, for a period not exceeding the lesser of
15    2/5 of the total creditable service of the member or 10
16    years. The maximum service of 10 years which is allowable
17    under this paragraph shall be reduced by the service
18    credit which is validated by other retirement systems
19    under paragraph (i) of Section 15-113 and paragraph 1 of
20    Section 17-133. Credit granted under this paragraph may
21    not be used in determination of a retirement annuity or
22    disability benefits unless the member has at least 5 years
23    of creditable service earned subsequent to this employment
24    with one or more of the following systems: Teachers'
25    Retirement System of the State of Illinois, State
26    Universities Retirement System, and the Public School

 

 

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1    Teachers' Pension and Retirement Fund of Chicago. Whenever
2    such service credit exceeds the maximum allowed for all
3    purposes of this Article, the first service rendered in
4    point of time shall be considered. The changes to this
5    subdivision (b)(2) made by Public Act 86-272 shall apply
6    not only to persons who on or after its effective date
7    (August 23, 1989) are in service as a teacher under the
8    System, but also to persons whose status as such a teacher
9    terminated prior to such effective date, whether or not
10    such person is an annuitant on that date.
11        (3) Any periods immediately following teaching
12    service, under this System or under Article 17, (or
13    immediately following service prior to February 1, 1951 as
14    a recreation worker for the Illinois Department of Public
15    Safety) spent in active service with the military forces
16    of the United States; periods spent in educational
17    programs that prepare for return to teaching sponsored by
18    the federal government following such active military
19    service; if a teacher returns to teaching service within
20    one calendar year after discharge or after the completion
21    of the educational program, a further period, not
22    exceeding one calendar year, between time spent in
23    military service or in such educational programs and the
24    return to employment as a teacher under this System; and a
25    period of up to 2 years of active military service not
26    immediately following employment as a teacher.

 

 

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1        The changes to this Section and Section 16-128
2    relating to military service made by P.A. 87-794 shall
3    apply not only to persons who on or after its effective
4    date are in service as a teacher under the System, but also
5    to persons whose status as a teacher terminated prior to
6    that date, whether or not the person is an annuitant on
7    that date. In the case of an annuitant who applies for
8    credit allowable under this Section for a period of
9    military service that did not immediately follow
10    employment, and who has made the required contributions
11    for such credit, the annuity shall be recalculated to
12    include the additional service credit, with the increase
13    taking effect on the date the System received written
14    notification of the annuitant's intent to purchase the
15    credit, if payment of all the required contributions is
16    made within 60 days of such notice, or else on the first
17    annuity payment date following the date of payment of the
18    required contributions. In calculating the automatic
19    annual increase for an annuity that has been recalculated
20    under this Section, the increase attributable to the
21    additional service allowable under P.A. 87-794 shall be
22    included in the calculation of automatic annual increases
23    accruing after the effective date of the recalculation.
24        Credit for military service shall be determined as
25    follows: if entry occurs during the months of July,
26    August, or September and the member was a teacher at the

 

 

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1    end of the immediately preceding school term, credit shall
2    be granted from July 1 of the year in which he or she
3    entered service; if entry occurs during the school term
4    and the teacher was in teaching service at the beginning
5    of the school term, credit shall be granted from July 1 of
6    such year. In all other cases where credit for military
7    service is allowed, credit shall be granted from the date
8    of entry into the service.
9        The total period of military service for which credit
10    is granted shall not exceed 5 years for any member unless
11    the service: (A) is validated before July 1, 1964, and (B)
12    does not extend beyond July 1, 1963. Credit for military
13    service shall be granted under this Section only if not
14    more than 5 years of the military service for which credit
15    is granted under this Section is used by the member to
16    qualify for a military retirement allotment from any
17    branch of the armed forces of the United States. The
18    changes to this subdivision (b)(3) made by Public Act
19    86-272 shall apply not only to persons who on or after its
20    effective date (August 23, 1989) are in service as a
21    teacher under the System, but also to persons whose status
22    as such a teacher terminated prior to such effective date,
23    whether or not such person is an annuitant on that date.
24        (4) Any periods served as a member of the General
25    Assembly.
26        (5)(i) Any periods for which a teacher, as defined in

 

 

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1    Section 16-106, is granted a leave of absence, provided he
2    or she returns to teaching service creditable under this
3    System or the State Universities Retirement System
4    following the leave; (ii) periods during which a teacher
5    is involuntarily laid off from teaching, provided he or
6    she returns to teaching following the lay-off; (iii)
7    periods prior to July 1, 1983 during which a teacher
8    ceased covered employment due to pregnancy, provided that
9    the teacher returned to teaching service creditable under
10    this System or the State Universities Retirement System
11    following the pregnancy and submits evidence satisfactory
12    to the Board documenting that the employment ceased due to
13    pregnancy; and (iv) periods prior to July 1, 1983 during
14    which a teacher ceased covered employment for the purpose
15    of adopting an infant under 3 years of age or caring for a
16    newly adopted infant under 3 years of age, provided that
17    the teacher returned to teaching service creditable under
18    this System or the State Universities Retirement System
19    following the adoption and submits evidence satisfactory
20    to the Board documenting that the employment ceased for
21    the purpose of adopting an infant under 3 years of age or
22    caring for a newly adopted infant under 3 years of age.
23    However, total credit under this paragraph (5) may not
24    exceed 3 years.
25        Any qualified member or annuitant may apply for credit
26    under item (iii) or (iv) of this paragraph (5) without

 

 

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1    regard to whether service was terminated before the
2    effective date of this amendatory Act of 1997. In the case
3    of an annuitant who establishes credit under item (iii) or
4    (iv), the annuity shall be recalculated to include the
5    additional service credit. The increase in annuity shall
6    take effect on the date the System receives written
7    notification of the annuitant's intent to purchase the
8    credit, if the required evidence is submitted and the
9    required contribution paid within 60 days of that
10    notification, otherwise on the first annuity payment date
11    following the System's receipt of the required evidence
12    and contribution. The increase in an annuity recalculated
13    under this provision shall be included in the calculation
14    of automatic annual increases in the annuity accruing
15    after the effective date of the recalculation.
16        Optional credit may be purchased under this subsection
17    (b)(5) for periods during which a teacher has been granted
18    a leave of absence pursuant to Section 24-13 of the School
19    Code. A teacher whose service under this Article
20    terminated prior to the effective date of P.A. 86-1488
21    shall be eligible to purchase such optional credit. If a
22    teacher who purchases this optional credit is already
23    receiving a retirement annuity under this Article, the
24    annuity shall be recalculated as if the annuitant had
25    applied for the leave of absence credit at the time of
26    retirement. The difference between the entitled annuity

 

 

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1    and the actual annuity shall be credited to the purchase
2    of the optional credit. The remainder of the purchase cost
3    of the optional credit shall be paid on or before April 1,
4    1992.
5        The change in this paragraph made by Public Act 86-273
6    shall be applicable to teachers who retire after June 1,
7    1989, as well as to teachers who are in service on that
8    date.
9        (6) Any days of unused and uncompensated accumulated
10    sick leave earned by a teacher. The service credit granted
11    under this paragraph shall be the ratio of the number of
12    unused and uncompensated accumulated sick leave days to
13    170 days, subject to a maximum of 2 years of service
14    credit. Prior to the member's retirement, each former
15    employer shall certify to the System the number of unused
16    and uncompensated accumulated sick leave days credited to
17    the member at the time of termination of service. The
18    period of unused sick leave shall not be considered in
19    determining the effective date of retirement. A member is
20    not required to make contributions in order to obtain
21    service credit for unused sick leave.
22        Credit for sick leave shall, at retirement, be granted
23    by the System for any retiring regional or assistant
24    regional superintendent of schools at the rate of 6 days
25    per year of creditable service or portion thereof
26    established while serving as such superintendent or

 

 

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1    assistant superintendent.
2        (7) Periods prior to February 1, 1987 served as an
3    employee of the Illinois Mathematics and Science Academy
4    for which credit has not been terminated under Section
5    15-113.9 of this Code.
6        (8) Service as a substitute teacher for work performed
7    prior to July 1, 1990.
8        (9) Service as a part-time teacher for work performed
9    prior to July 1, 1990.
10        (10) Up to 2 years of employment with Southern
11    Illinois University - Carbondale from September 1, 1959 to
12    August 31, 1961, or with Governors State University from
13    September 1, 1972 to August 31, 1974, for which the
14    teacher has no credit under Article 15. To receive credit
15    under this item (10), a teacher must apply in writing to
16    the Board and pay the required contributions before May 1,
17    1993 and have at least 12 years of service credit under
18    this Article.
19    (b-1) A member may establish optional credit for up to 2
20years of service as a teacher or administrator employed by a
21private school recognized by the Illinois State Board of
22Education, provided that the teacher (i) was certified under
23the law governing the certification of teachers at the time
24the service was rendered, (ii) applies in writing on or before
25June 30, 2023 on or after August 1, 2009 and on or before
26August 1, 2012, (iii) supplies satisfactory evidence of the

 

 

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1employment, (iv) completes at least 10 years of contributing
2service as a teacher as defined in Section 16-106, and (v) pays
3the contribution required in subsection (d-5) of Section
416-128. The member may apply for credit under this subsection
5and pay the required contribution before completing the 10
6years of contributing service required under item (iv), but
7the credit may not be used until the item (iv) contributing
8service requirement has been met.
9    (c) The service credits specified in this Section shall be
10granted only if: (1) such service credits are not used for
11credit in any other statutory tax-supported public employee
12retirement system other than the federal Social Security
13program; and (2) the member makes the required contributions
14as specified in Section 16-128. Except as provided in
15subsection (b-1) of this Section, the service credit shall be
16effective as of the date the required contributions are
17completed.
18    Any service credits granted under this Section shall
19terminate upon cessation of membership for any cause.
20    Credit may not be granted under this Section covering any
21period for which an age retirement or disability retirement
22allowance has been paid.
23    Credit may not be granted under this Section for service
24as an employee of an entity that provides substitute teaching
25services under Section 2-3.173 of the School Code and is not a
26school district.

 

 

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1(Source: P.A. 100-813, eff. 8-13-18.)
 
2    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
3    Sec. 16-158. Contributions by State and other employing
4units.
5    (a) The State shall make contributions to the System by
6means of appropriations from the Common School Fund and other
7State funds of amounts which, together with other employer
8contributions, employee contributions, investment income, and
9other income, will be sufficient to meet the cost of
10maintaining and administering the System on a 90% funded basis
11in accordance with actuarial recommendations.
12    The Board shall determine the amount of State
13contributions required for each fiscal year on the basis of
14the actuarial tables and other assumptions adopted by the
15Board and the recommendations of the actuary, using the
16formula in subsection (b-3).
17    (a-1) Annually, on or before November 15 until November
1815, 2011, the Board shall certify to the Governor the amount of
19the required State contribution for the coming fiscal year.
20The certification under this subsection (a-1) shall include a
21copy of the actuarial recommendations upon which it is based
22and shall specifically identify the System's projected State
23normal cost for that fiscal year.
24    On or before May 1, 2004, the Board shall recalculate and
25recertify to the Governor the amount of the required State

 

 

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1contribution to the System for State fiscal year 2005, taking
2into account the amounts appropriated to and received by the
3System under subsection (d) of Section 7.2 of the General
4Obligation Bond Act.
5    On or before July 1, 2005, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2006, taking
8into account the changes in required State contributions made
9by Public Act 94-4.
10    On or before April 1, 2011, the Board shall recalculate
11and recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2011,
13applying the changes made by Public Act 96-889 to the System's
14assets and liabilities as of June 30, 2009 as though Public Act
1596-889 was approved on that date.
16    (a-5) On or before November 1 of each year, beginning
17November 1, 2012, the Board shall submit to the State Actuary,
18the Governor, and the General Assembly a proposed
19certification of the amount of the required State contribution
20to the System for the next fiscal year, along with all of the
21actuarial assumptions, calculations, and data upon which that
22proposed certification is based. On or before January 1 of
23each year, beginning January 1, 2013, the State Actuary shall
24issue a preliminary report concerning the proposed
25certification and identifying, if necessary, recommended
26changes in actuarial assumptions that the Board must consider

 

 

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1before finalizing its certification of the required State
2contributions. On or before January 15, 2013 and each January
315 thereafter, the Board shall certify to the Governor and the
4General Assembly the amount of the required State contribution
5for the next fiscal year. The Board's certification must note
6any deviations from the State Actuary's recommended changes,
7the reason or reasons for not following the State Actuary's
8recommended changes, and the fiscal impact of not following
9the State Actuary's recommended changes on the required State
10contribution.
11    (a-10) By November 1, 2017, the Board shall recalculate
12and recertify to the State Actuary, the Governor, and the
13General Assembly the amount of the State contribution to the
14System for State fiscal year 2018, taking into account the
15changes in required State contributions made by Public Act
16100-23. The State Actuary shall review the assumptions and
17valuations underlying the Board's revised certification and
18issue a preliminary report concerning the proposed
19recertification and identifying, if necessary, recommended
20changes in actuarial assumptions that the Board must consider
21before finalizing its certification of the required State
22contributions. The Board's final certification must note any
23deviations from the State Actuary's recommended changes, the
24reason or reasons for not following the State Actuary's
25recommended changes, and the fiscal impact of not following
26the State Actuary's recommended changes on the required State

 

 

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1contribution.
2    (a-15) On or after June 15, 2019, but no later than June
330, 2019, the Board shall recalculate and recertify to the
4Governor and the General Assembly the amount of the State
5contribution to the System for State fiscal year 2019, taking
6into account the changes in required State contributions made
7by Public Act 100-587. The recalculation shall be made using
8assumptions adopted by the Board for the original fiscal year
92019 certification. The monthly voucher for the 12th month of
10fiscal year 2019 shall be paid by the Comptroller after the
11recertification required pursuant to this subsection is
12submitted to the Governor, Comptroller, and General Assembly.
13The recertification submitted to the General Assembly shall be
14filed with the Clerk of the House of Representatives and the
15Secretary of the Senate in electronic form only, in the manner
16that the Clerk and the Secretary shall direct.
17    (b) Through State fiscal year 1995, the State
18contributions shall be paid to the System in accordance with
19Section 18-7 of the School Code.
20    (b-1) Beginning in State fiscal year 1996, on the 15th day
21of each month, or as soon thereafter as may be practicable, the
22Board shall submit vouchers for payment of State contributions
23to the System, in a total monthly amount of one-twelfth of the
24required annual State contribution certified under subsection
25(a-1). From March 5, 2004 (the effective date of Public Act
2693-665) through June 30, 2004, the Board shall not submit

 

 

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1vouchers for the remainder of fiscal year 2004 in excess of the
2fiscal year 2004 certified contribution amount determined
3under this Section after taking into consideration the
4transfer to the System under subsection (a) of Section 6z-61
5of the State Finance Act. These vouchers shall be paid by the
6State Comptroller and Treasurer by warrants drawn on the funds
7appropriated to the System for that fiscal year.
8    If in any month the amount remaining unexpended from all
9other appropriations to the System for the applicable fiscal
10year (including the appropriations to the System under Section
118.12 of the State Finance Act and Section 1 of the State
12Pension Funds Continuing Appropriation Act) is less than the
13amount lawfully vouchered under this subsection, the
14difference shall be paid from the Common School Fund under the
15continuing appropriation authority provided in Section 1.1 of
16the State Pension Funds Continuing Appropriation Act.
17    (b-2) Allocations from the Common School Fund apportioned
18to school districts not coming under this System shall not be
19diminished or affected by the provisions of this Article.
20    (b-3) For State fiscal years 2012 through 2045, the
21minimum contribution to the System to be made by the State for
22each fiscal year shall be an amount determined by the System to
23be sufficient to bring the total assets of the System up to 90%
24of the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the
26required State contribution shall be calculated each year as a

 

 

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1level percentage of payroll over the years remaining to and
2including fiscal year 2045 and shall be determined under the
3projected unit credit actuarial cost method.
4    For each of State fiscal years 2018, 2019, and 2020, the
5State shall make an additional contribution to the System
6equal to 2% of the total payroll of each employee who is deemed
7to have elected the benefits under Section 1-161 or who has
8made the election under subsection (c) of Section 1-161.
9    A change in an actuarial or investment assumption that
10increases or decreases the required State contribution and
11first applies in State fiscal year 2018 or thereafter shall be
12implemented in equal annual amounts over a 5-year period
13beginning in the State fiscal year in which the actuarial
14change first applies to the required State contribution.
15    A change in an actuarial or investment assumption that
16increases or decreases the required State contribution and
17first applied to the State contribution in fiscal year 2014,
182015, 2016, or 2017 shall be implemented:
19        (i) as already applied in State fiscal years before
20    2018; and
21        (ii) in the portion of the 5-year period beginning in
22    the State fiscal year in which the actuarial change first
23    applied that occurs in State fiscal year 2018 or
24    thereafter, by calculating the change in equal annual
25    amounts over that 5-year period and then implementing it
26    at the resulting annual rate in each of the remaining

 

 

10200SB1646ham002- 17 -LRB102 15392 SMS 26215 a

1    fiscal years in that 5-year period.
2    For State fiscal years 1996 through 2005, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual
5increments so that by State fiscal year 2011, the State is
6contributing at the rate required under this Section; except
7that in the following specified State fiscal years, the State
8contribution to the System shall not be less than the
9following indicated percentages of the applicable employee
10payroll, even if the indicated percentage will produce a State
11contribution in excess of the amount otherwise required under
12this subsection and subsection (a), and notwithstanding any
13contrary certification made under subsection (a-1) before May
1427, 1998 (the effective date of Public Act 90-582): 10.02% in
15FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
162002; 12.86% in FY 2003; and 13.56% in FY 2004.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2006
19is $534,627,700.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2007
22is $738,014,500.
23    For each of State fiscal years 2008 through 2009, the
24State contribution to the System, as a percentage of the
25applicable employee payroll, shall be increased in equal
26annual increments from the required State contribution for

 

 

10200SB1646ham002- 18 -LRB102 15392 SMS 26215 a

1State fiscal year 2007, so that by State fiscal year 2011, the
2State is contributing at the rate otherwise required under
3this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2010
6is $2,089,268,000 and shall be made from the proceeds of bonds
7sold in fiscal year 2010 pursuant to Section 7.2 of the General
8Obligation Bond Act, less (i) the pro rata share of bond sale
9expenses determined by the System's share of total bond
10proceeds, (ii) any amounts received from the Common School
11Fund in fiscal year 2010, and (iii) any reduction in bond
12proceeds due to the issuance of discounted bonds, if
13applicable.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2011
16is the amount recertified by the System on or before April 1,
172011 pursuant to subsection (a-1) of this Section and shall be
18made from the proceeds of bonds sold in fiscal year 2011
19pursuant to Section 7.2 of the General Obligation Bond Act,
20less (i) the pro rata share of bond sale expenses determined by
21the System's share of total bond proceeds, (ii) any amounts
22received from the Common School Fund in fiscal year 2011, and
23(iii) any reduction in bond proceeds due to the issuance of
24discounted bonds, if applicable. This amount shall include, in
25addition to the amount certified by the System, an amount
26necessary to meet employer contributions required by the State

 

 

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

 

 

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1System had not received any payments under subsection (d) of
2Section 7.2 of the General Obligation Bond Act, minus (ii) the
3portion of the State's total debt service payments for that
4fiscal year on the bonds issued in fiscal year 2003 for the
5purposes of that Section 7.2, as determined and certified by
6the Comptroller, that is the same as the System's portion of
7the total moneys distributed under subsection (d) of Section
87.2 of the General Obligation Bond Act. In determining this
9maximum for State fiscal years 2008 through 2010, however, the
10amount referred to in item (i) shall be increased, as a
11percentage of the applicable employee payroll, in equal
12increments calculated from the sum of the required State
13contribution for State fiscal year 2007 plus the applicable
14portion of the State's total debt service payments for fiscal
15year 2007 on the bonds issued in fiscal year 2003 for the
16purposes of Section 7.2 of the General Obligation Bond Act, so
17that, by State fiscal year 2011, the State is contributing at
18the rate otherwise required under this Section.
19    (b-4) Beginning in fiscal year 2018, each employer under
20this Article shall pay to the System a required contribution
21determined as a percentage of projected payroll and sufficient
22to produce an annual amount equal to:
23        (i) for each of fiscal years 2018, 2019, and 2020, the
24    defined benefit normal cost of the defined benefit plan,
25    less the employee contribution, for each employee of that
26    employer who has elected or who is deemed to have elected

 

 

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1    the benefits under Section 1-161 or who has made the
2    election under subsection (b) of Section 1-161; for fiscal
3    year 2021 and each fiscal year thereafter, the defined
4    benefit normal cost of the defined benefit plan, less the
5    employee contribution, plus 2%, for each employee of that
6    employer who has elected or who is deemed to have elected
7    the benefits under Section 1-161 or who has made the
8    election under subsection (b) of Section 1-161; plus
9        (ii) the amount required for that fiscal year to
10    amortize any unfunded actuarial accrued liability
11    associated with the present value of liabilities
12    attributable to the employer's account under Section
13    16-158.3, determined as a level percentage of payroll over
14    a 30-year rolling amortization period.
15    In determining contributions required under item (i) of
16this subsection, the System shall determine an aggregate rate
17for all employers, expressed as a percentage of projected
18payroll.
19    In determining the contributions required under item (ii)
20of this subsection, the amount shall be computed by the System
21on the basis of the actuarial assumptions and tables used in
22the most recent actuarial valuation of the System that is
23available at the time of the computation.
24    The contributions required under this subsection (b-4)
25shall be paid by an employer concurrently with that employer's
26payroll payment period. The State, as the actual employer of

 

 

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1an employee, shall make the required contributions under this
2subsection.
3    (c) Payment of the required State contributions and of all
4pensions, retirement annuities, death benefits, refunds, and
5other benefits granted under or assumed by this System, and
6all expenses in connection with the administration and
7operation thereof, are obligations of the State.
8    If members are paid from special trust or federal funds
9which are administered by the employing unit, whether school
10district or other unit, the employing unit shall pay to the
11System from such funds the full accruing retirement costs
12based upon that service, which, beginning July 1, 2017, shall
13be at a rate, expressed as a percentage of salary, equal to the
14total employer's normal cost, expressed as a percentage of
15payroll, as determined by the System. Employer contributions,
16based on salary paid to members from federal funds, may be
17forwarded by the distributing agency of the State of Illinois
18to the System prior to allocation, in an amount determined in
19accordance with guidelines established by such agency and the
20System. Any contribution for fiscal year 2015 collected as a
21result of the change made by Public Act 98-674 shall be
22considered a State contribution under subsection (b-3) of this
23Section.
24    (d) Effective July 1, 1986, any employer of a teacher as
25defined in paragraph (8) of Section 16-106 shall pay the
26employer's normal cost of benefits based upon the teacher's

 

 

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1service, in addition to employee contributions, as determined
2by the System. Such employer contributions shall be forwarded
3monthly in accordance with guidelines established by the
4System.
5    However, with respect to benefits granted under Section
616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
7of Section 16-106, the employer's contribution shall be 12%
8(rather than 20%) of the member's highest annual salary rate
9for each year of creditable service granted, and the employer
10shall also pay the required employee contribution on behalf of
11the teacher. For the purposes of Sections 16-133.4 and
1216-133.5, a teacher as defined in paragraph (8) of Section
1316-106 who is serving in that capacity while on leave of
14absence from another employer under this Article shall not be
15considered an employee of the employer from which the teacher
16is on leave.
17    (e) Beginning July 1, 1998, every employer of a teacher
18shall pay to the System an employer contribution computed as
19follows:
20        (1) Beginning July 1, 1998 through June 30, 1999, the
21    employer contribution shall be equal to 0.3% of each
22    teacher's salary.
23        (2) Beginning July 1, 1999 and thereafter, the
24    employer contribution shall be equal to 0.58% of each
25    teacher's salary.
26The school district or other employing unit may pay these

 

 

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1employer contributions out of any source of funding available
2for that purpose and shall forward the contributions to the
3System on the schedule established for the payment of member
4contributions.
5    These employer contributions are intended to offset a
6portion of the cost to the System of the increases in
7retirement benefits resulting from Public Act 90-582.
8    Each employer of teachers is entitled to a credit against
9the contributions required under this subsection (e) with
10respect to salaries paid to teachers for the period January 1,
112002 through June 30, 2003, equal to the amount paid by that
12employer under subsection (a-5) of Section 6.6 of the State
13Employees Group Insurance Act of 1971 with respect to salaries
14paid to teachers for that period.
15    The additional 1% employee contribution required under
16Section 16-152 by Public Act 90-582 is the responsibility of
17the teacher and not the teacher's employer, unless the
18employer agrees, through collective bargaining or otherwise,
19to make the contribution on behalf of the teacher.
20    If an employer is required by a contract in effect on May
211, 1998 between the employer and an employee organization to
22pay, on behalf of all its full-time employees covered by this
23Article, all mandatory employee contributions required under
24this Article, then the employer shall be excused from paying
25the employer contribution required under this subsection (e)
26for the balance of the term of that contract. The employer and

 

 

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1the employee organization shall jointly certify to the System
2the existence of the contractual requirement, in such form as
3the System may prescribe. This exclusion shall cease upon the
4termination, extension, or renewal of the contract at any time
5after May 1, 1998.
6    (f) If June 4, 2018 (Public Act 100-587) the amount of a
7teacher's salary for any school year used to determine final
8average salary exceeds the member's annual full-time salary
9rate with the same employer for the previous school year by
10more than 6%, the teacher's employer shall pay to the System,
11in addition to all other payments required under this Section
12and in accordance with guidelines established by the System,
13the present value of the increase in benefits resulting from
14the portion of the increase in salary that is in excess of 6%.
15This present value shall be computed by the System on the basis
16of the actuarial assumptions and tables used in the most
17recent actuarial valuation of the System that is available at
18the time of the computation. If a teacher's salary for the
192005-2006 school year is used to determine final average
20salary under this subsection (f), then the changes made to
21this subsection (f) by Public Act 94-1057 shall apply in
22calculating whether the increase in his or her salary is in
23excess of 6%. For the purposes of this Section, change in
24employment under Section 10-21.12 of the School Code on or
25after June 1, 2005 shall constitute a change in employer. The
26System may require the employer to provide any pertinent

 

 

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1information or documentation. The changes made to this
2subsection (f) by Public Act 94-1111 apply without regard to
3whether the teacher was in service on or after its effective
4date.
5    Whenever it determines that a payment is or may be
6required under this subsection, the System shall calculate the
7amount of the payment and bill the employer for that amount.
8The bill shall specify the calculations used to determine the
9amount due. If the employer disputes the amount of the bill, it
10may, within 30 days after receipt of the bill, apply to the
11System in writing for a recalculation. The application must
12specify in detail the grounds of the dispute and, if the
13employer asserts that the calculation is subject to subsection
14(g), (g-5), or (h) of this Section, must include an affidavit
15setting forth and attesting to all facts within the employer's
16knowledge that are pertinent to the applicability of that
17subsection. Upon receiving a timely application for
18recalculation, the System shall review the application and, if
19appropriate, recalculate the amount due.
20    The employer contributions required under this subsection
21(f) may be paid in the form of a lump sum within 90 days after
22receipt of the bill. If the employer contributions are not
23paid within 90 days after receipt of the bill, then interest
24will be charged at a rate equal to the System's annual
25actuarially assumed rate of return on investment compounded
26annually from the 91st day after receipt of the bill. Payments

 

 

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1must be concluded within 3 years after the employer's receipt
2of the bill.
3    (f-1) (Blank). June 4, 2018 (Public Act 100-587)
4    (g) This subsection (g) applies only to payments made or
5salary increases given on or after June 1, 2005 but before July
61, 2011. The changes made by Public Act 94-1057 shall not
7require the System to refund any payments received before July
831, 2006 (the effective date of Public Act 94-1057).
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude salary increases paid to
11teachers under contracts or collective bargaining agreements
12entered into, amended, or renewed before June 1, 2005.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude salary increases paid to a
15teacher at a time when the teacher is 10 or more years from
16retirement eligibility under Section 16-132 or 16-133.2.
17    When assessing payment for any amount due under subsection
18(f), the System shall exclude salary increases resulting from
19overload work, including summer school, when the school
20district has certified to the System, and the System has
21approved the certification, that (i) the overload work is for
22the sole purpose of classroom instruction in excess of the
23standard number of classes for a full-time teacher in a school
24district during a school year and (ii) the salary increases
25are equal to or less than the rate of pay for classroom
26instruction computed on the teacher's current salary and work

 

 

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1schedule.
2    When assessing payment for any amount due under subsection
3(f), the System shall exclude a salary increase resulting from
4a promotion (i) for which the employee is required to hold a
5certificate or supervisory endorsement issued by the State
6Teacher Certification Board that is a different certification
7or supervisory endorsement than is required for the teacher's
8previous position and (ii) to a position that has existed and
9been filled by a member for no less than one complete academic
10year and the salary increase from the promotion is an increase
11that results in an amount no greater than the lesser of the
12average salary paid for other similar positions in the
13district requiring the same certification or the amount
14stipulated in the collective bargaining agreement for a
15similar position 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
18the State of Illinois or the State Board of Education over
19which the employer does not have discretion, notwithstanding
20that the payment is included in the computation of final
21average salary.
22    (g-5) When assessing payment for any amount due under
23subsection (f), the System shall exclude salary increases
24resulting from teaching summer school on or after May 1, 2021
25and before September 15, 2022.
26    (h) When assessing payment for any amount due under

 

 

10200SB1646ham002- 29 -LRB102 15392 SMS 26215 a

1subsection (f), the System shall exclude any salary increase
2described in subsection (g) of this Section given on or after
3July 1, 2011 but before July 1, 2014 under a contract or
4collective bargaining agreement entered into, amended, or
5renewed on or after June 1, 2005 but before July 1, 2011.
6Notwithstanding any other provision of this Section, any
7payments made or salary increases given after June 30, 2014
8shall be used in assessing payment for any amount due under
9subsection (f) of this Section.
10    (i) The System shall prepare a report and file copies of
11the report with the Governor and the General Assembly by
12January 1, 2007 that contains all of the following
13information:
14        (1) The number of recalculations required by the
15    changes made to this Section by Public Act 94-1057 for
16    each employer.
17        (2) The dollar amount by which each employer's
18    contribution to the System was changed due to
19    recalculations required by Public Act 94-1057.
20        (3) The total amount the System received from each
21    employer as a result of the changes made to this Section by
22    Public Act 94-4.
23        (4) The increase in the required State contribution
24    resulting from the changes made to this Section by Public
25    Act 94-1057.
26    (i-5) For school years beginning on or after July 1, 2017,

 

 

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1if the amount of a participant's salary for any school year
2exceeds the amount of the salary set for the Governor, the
3participant's employer shall pay to the System, in addition to
4all other payments required under this Section and in
5accordance with guidelines established by the System, an
6amount determined by the System to be equal to the employer
7normal cost, as established by the System and expressed as a
8total percentage of payroll, multiplied by the amount of
9salary in excess of the amount of the salary set for the
10Governor. This amount shall be computed by the System on the
11basis of the actuarial assumptions and tables used in the most
12recent actuarial valuation of the System that is available at
13the time of the computation. The System may require the
14employer to provide any pertinent information or
15documentation.
16    Whenever it determines that a payment is or may be
17required under this subsection, the System shall calculate the
18amount of the payment and bill the employer for that amount.
19The bill shall specify the calculations used to determine the
20amount due. If the employer disputes the amount of the bill, it
21may, within 30 days after receipt of the bill, apply to the
22System in writing for a recalculation. The application must
23specify in detail the grounds of the dispute. Upon receiving a
24timely application for recalculation, the System shall review
25the application and, if appropriate, recalculate the amount
26due.

 

 

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1    The employer contributions required under this subsection
2may be paid in the form of a lump sum within 90 days after
3receipt of the bill. If the employer contributions are not
4paid within 90 days after receipt of the bill, then interest
5will be charged at a rate equal to the System's annual
6actuarially assumed rate of return on investment compounded
7annually from the 91st day after receipt of the bill. Payments
8must be concluded within 3 years after the employer's receipt
9of the bill.
10    (j) For purposes of determining the required State
11contribution to the System, the value of the System's assets
12shall be equal to the actuarial value of the System's assets,
13which shall be calculated as follows:
14    As of June 30, 2008, the actuarial value of the System's
15assets shall be equal to the market value of the assets as of
16that date. In determining the actuarial value of the System's
17assets for fiscal years after June 30, 2008, any actuarial
18gains or losses from investment return incurred in a fiscal
19year shall be recognized in equal annual amounts over the
205-year period following that fiscal year.
21    (k) For purposes of determining the required State
22contribution to the system for a particular year, the
23actuarial value of assets shall be assumed to earn a rate of
24return equal to the system's actuarially assumed rate of
25return.
26(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;

 

 

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1100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
28-14-18; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; revised
38-13-19.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".