Full Text of HB0300 103rd General Assembly
HB0300enr 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 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 90% funded basis | 15 | | in accordance
with actuarial recommendations.
| 16 | | The Board shall determine the amount of State | 17 | | contributions required for
each fiscal year on the basis of | 18 | | the actuarial tables and other assumptions
adopted by the | 19 | | Board and the recommendations of the actuary, using the | 20 | | formula
in subsection (b-3).
| 21 | | (a-1) Annually, on or before November 15 until November | 22 | | 15, 2011, the Board shall certify to the
Governor the amount of | 23 | | the required State contribution for the coming fiscal
year. |
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| 1 | | The certification under this subsection (a-1) shall include a | 2 | | copy of the actuarial recommendations
upon which it is based | 3 | | and shall specifically identify the System's projected State | 4 | | normal cost for that fiscal year.
| 5 | | On or before May 1, 2004, the Board shall recalculate and | 6 | | recertify to
the Governor the amount of the required State | 7 | | contribution to the System for
State fiscal year 2005, taking | 8 | | into account the amounts appropriated to and
received by the | 9 | | System under subsection (d) of Section 7.2 of the General
| 10 | | Obligation Bond Act.
| 11 | | On or before July 1, 2005, 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 2006, taking | 14 | | into account the changes in required State contributions made | 15 | | by Public Act 94-4.
| 16 | | On or before April 1, 2011, the Board shall recalculate | 17 | | and recertify to the Governor the amount of the required State | 18 | | contribution to the System for State fiscal year 2011, | 19 | | applying the changes made by Public Act 96-889 to the System's | 20 | | assets and liabilities as of June 30, 2009 as though Public Act | 21 | | 96-889 was approved on that date. | 22 | | (a-5) On or before November 1 of each year, beginning | 23 | | November 1, 2012, the Board shall submit to the State Actuary, | 24 | | the Governor, and the General Assembly a proposed | 25 | | certification of the amount of the required State contribution | 26 | | to the System for the next fiscal year, along with all of the |
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| 1 | | actuarial assumptions, calculations, and data upon which that | 2 | | proposed certification is based. On or before January 1 of | 3 | | each year, beginning January 1, 2013, the State Actuary shall | 4 | | issue a preliminary report concerning the proposed | 5 | | certification and identifying, if necessary, recommended | 6 | | changes in actuarial assumptions that the Board must consider | 7 | | before finalizing its certification of the required State | 8 | | contributions. On or before January 15, 2013 and each January | 9 | | 15 thereafter, the Board shall certify to the Governor and the | 10 | | General Assembly the amount of the required State contribution | 11 | | for the next fiscal year. The Board's certification must note | 12 | | any deviations from the State Actuary's recommended changes, | 13 | | the reason or reasons for not following the State Actuary's | 14 | | recommended changes, and the fiscal impact of not following | 15 | | the State Actuary's recommended changes on the required State | 16 | | contribution. | 17 | | (a-10) By November 1, 2017, the Board shall recalculate | 18 | | and recertify to the State Actuary, the Governor, and the | 19 | | General Assembly the amount of the State contribution to the | 20 | | System for State fiscal year 2018, taking into account the | 21 | | changes in required State contributions made by Public Act | 22 | | 100-23. The State Actuary shall review the assumptions and | 23 | | valuations underlying the Board's revised certification and | 24 | | issue a preliminary report concerning the proposed | 25 | | recertification and identifying, if necessary, recommended | 26 | | changes in actuarial assumptions that the Board must consider |
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| 1 | | before finalizing its certification of the required State | 2 | | contributions. The Board's final certification must note any | 3 | | deviations from the State Actuary's recommended changes, the | 4 | | reason or reasons for not following the State Actuary's | 5 | | recommended changes, and the fiscal impact of not following | 6 | | the State Actuary's recommended changes on the required State | 7 | | contribution. | 8 | | (a-15) On or after June 15, 2019, but no later than June | 9 | | 30, 2019, the Board shall recalculate and recertify to the | 10 | | Governor and the General Assembly the amount of the State | 11 | | contribution to the System for State fiscal year 2019, taking | 12 | | into account the changes in required State contributions made | 13 | | by Public Act 100-587. The recalculation shall be made using | 14 | | assumptions adopted by the Board for the original fiscal year | 15 | | 2019 certification. The monthly voucher for the 12th month of | 16 | | fiscal year 2019 shall be paid by the Comptroller after the | 17 | | recertification required pursuant to this subsection is | 18 | | submitted to the Governor, Comptroller, and General Assembly. | 19 | | The recertification submitted to the General Assembly shall be | 20 | | filed with the Clerk of the House of Representatives and the | 21 | | Secretary of the Senate in electronic form only, in the manner | 22 | | that the Clerk and the Secretary shall direct. | 23 | | (b) Through State fiscal year 1995, the State | 24 | | contributions shall be
paid to the System in accordance with | 25 | | Section 18-7 of the School Code.
| 26 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
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| 1 | | of each month,
or as soon thereafter as may be practicable, the | 2 | | Board shall submit vouchers
for payment of State contributions | 3 | | to the System, in a total monthly amount of
one-twelfth of the | 4 | | required annual State contribution certified under
subsection | 5 | | (a-1).
From March 5, 2004 (the
effective date of Public Act | 6 | | 93-665)
through June 30, 2004, the Board shall not submit | 7 | | vouchers for the
remainder of fiscal year 2004 in excess of the | 8 | | fiscal year 2004
certified contribution amount determined | 9 | | under this Section
after taking into consideration the | 10 | | transfer to the System
under subsection (a) of Section 6z-61 | 11 | | of the State Finance Act.
These vouchers shall be paid by the | 12 | | State Comptroller and
Treasurer by warrants drawn on the funds | 13 | | appropriated to the System for that
fiscal year.
| 14 | | If in any month the amount remaining unexpended from all | 15 | | other appropriations
to the System for the applicable fiscal | 16 | | year (including the appropriations to
the System under Section | 17 | | 8.12 of the State Finance Act and Section 1 of the
State | 18 | | Pension Funds Continuing Appropriation Act) is less than the | 19 | | amount
lawfully vouchered under this subsection, the | 20 | | difference shall be paid from the
Common School Fund under the | 21 | | continuing appropriation authority provided in
Section 1.1 of | 22 | | the State Pension Funds Continuing Appropriation Act.
| 23 | | (b-2) Allocations from the Common School Fund apportioned | 24 | | to school
districts not coming under this System shall not be | 25 | | diminished or affected by
the provisions of this Article.
| 26 | | (b-3) For State fiscal years 2012 through 2045, the |
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| 1 | | minimum contribution
to the System to be made by the State for | 2 | | each fiscal year shall be an amount
determined by the System to | 3 | | be sufficient to bring the total assets of the
System up to 90% | 4 | | of the total actuarial liabilities of the System by the end of
| 5 | | State fiscal year 2045. In making these determinations, the | 6 | | required State
contribution shall be calculated each year as a | 7 | | level percentage of payroll
over the years remaining to and | 8 | | including fiscal year 2045 and shall be
determined under the | 9 | | projected unit credit actuarial cost method.
| 10 | | For each of State fiscal years 2018, 2019, and 2020, the | 11 | | State shall make an additional contribution to the System | 12 | | equal to 2% of the total payroll of each employee who is deemed | 13 | | to have elected the benefits under Section 1-161 or who has | 14 | | made the election under subsection (c) of Section 1-161. | 15 | | A change in an actuarial or investment assumption that | 16 | | increases or
decreases the required State contribution and | 17 | | first
applies in State fiscal year 2018 or thereafter shall be
| 18 | | implemented in equal annual amounts over a 5-year period
| 19 | | beginning in the State fiscal year in which the actuarial
| 20 | | change first applies to the required State contribution. | 21 | | A change in an actuarial or investment assumption that | 22 | | increases or
decreases the required State contribution and | 23 | | first
applied to the State contribution in fiscal year 2014, | 24 | | 2015, 2016, or 2017 shall be
implemented: | 25 | | (i) as already applied in State fiscal years before | 26 | | 2018; and |
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| 1 | | (ii) in the portion of the 5-year period beginning in | 2 | | the State fiscal year in which the actuarial
change first | 3 | | applied that occurs in State fiscal year 2018 or | 4 | | thereafter, by calculating the change in equal annual | 5 | | amounts over that 5-year period and then implementing it | 6 | | at the resulting annual rate in each of the remaining | 7 | | fiscal years in that 5-year period. | 8 | | For State fiscal years 1996 through 2005, the State | 9 | | contribution to the
System, as a percentage of the applicable | 10 | | employee payroll, shall be increased
in equal annual | 11 | | increments so that by State fiscal year 2011, the State is
| 12 | | contributing at the rate required under this Section; except | 13 | | that in the
following specified State fiscal years, the State | 14 | | contribution to the System
shall not be less than the | 15 | | following indicated percentages of the applicable
employee | 16 | | payroll, even if the indicated percentage will produce a State
| 17 | | contribution in excess of the amount otherwise required under | 18 | | this subsection
and subsection (a), and notwithstanding any | 19 | | contrary certification made under
subsection (a-1) before May | 20 | | 27, 1998 (the effective date of Public Act 90-582):
10.02% in | 21 | | FY 1999;
10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY | 22 | | 2002;
12.86% in FY 2003; and
13.56% in FY 2004.
| 23 | | Notwithstanding any other provision of this Article, the | 24 | | total required State
contribution for State fiscal year 2006 | 25 | | is $534,627,700.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State
contribution for State fiscal year 2007 | 2 | | is $738,014,500.
| 3 | | For each of State fiscal years 2008 through 2009, the | 4 | | State contribution to
the System, as a percentage of the | 5 | | applicable employee payroll, shall be
increased in equal | 6 | | annual increments from the required State contribution for | 7 | | State fiscal year 2007, so that by State fiscal year 2011, the
| 8 | | State is contributing at the rate otherwise required under | 9 | | this Section.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State contribution for State fiscal year 2010 | 12 | | is $2,089,268,000 and shall be made from the proceeds of bonds | 13 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 14 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 15 | | expenses determined by the System's share of total bond | 16 | | proceeds, (ii) any amounts received from the Common School | 17 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 18 | | proceeds due to the issuance of discounted bonds, if | 19 | | applicable. | 20 | | Notwithstanding any other provision of this Article, the
| 21 | | total required State contribution for State fiscal year 2011 | 22 | | is
the amount recertified by the System on or before April 1, | 23 | | 2011 pursuant to subsection (a-1) of this Section and shall be | 24 | | made from the proceeds of bonds
sold in fiscal year 2011 | 25 | | pursuant to Section 7.2 of the General
Obligation Bond Act, | 26 | | less (i) the pro rata share of bond sale
expenses determined by |
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| 1 | | the System's share of total bond
proceeds, (ii) any amounts | 2 | | received from the Common School Fund
in fiscal year 2011, and | 3 | | (iii) any reduction in bond proceeds
due to the issuance of | 4 | | discounted bonds, if applicable. This amount shall include, in | 5 | | addition to the amount certified by the System, an amount | 6 | | necessary to meet employer contributions required by the State | 7 | | as an employer under paragraph (e) of this Section, which may | 8 | | also be used by the System for contributions required by | 9 | | paragraph (a) of Section 16-127. | 10 | | Beginning in State fiscal year 2046, the minimum State | 11 | | contribution for
each fiscal year shall be the amount needed | 12 | | to maintain the total assets of
the System at 90% of the total | 13 | | actuarial liabilities of the System.
| 14 | | Amounts received by the System pursuant to Section 25 of | 15 | | the Budget Stabilization Act or Section 8.12 of the State | 16 | | Finance Act in any fiscal year do not reduce and do not | 17 | | constitute payment of any portion of the minimum State | 18 | | contribution required under this Article in that fiscal year. | 19 | | Such amounts shall not reduce, and shall not be included in the | 20 | | calculation of, the required State contributions under this | 21 | | Article in any future year until the System has reached a | 22 | | funding ratio of at least 90%. A reference in this Article to | 23 | | the "required State contribution" or any substantially similar | 24 | | term does not include or apply to any amounts payable to the | 25 | | System under Section 25 of the Budget Stabilization Act. | 26 | | Notwithstanding any other provision of this Section, the |
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| 1 | | required State
contribution for State fiscal year 2005 and for | 2 | | fiscal year 2008 and each fiscal year thereafter, as
| 3 | | calculated under this Section and
certified under subsection | 4 | | (a-1), shall not exceed an amount equal to (i) the
amount of | 5 | | the required State contribution that would have been | 6 | | calculated under
this Section for that fiscal year if the | 7 | | System had not received any payments
under subsection (d) of | 8 | | Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 9 | | portion of the State's total debt service payments for that | 10 | | fiscal
year on the bonds issued in fiscal year 2003 for the | 11 | | purposes of that Section 7.2, as determined
and certified by | 12 | | the Comptroller, that is the same as the System's portion of
| 13 | | the total moneys distributed under subsection (d) of Section | 14 | | 7.2 of the General
Obligation Bond Act. In determining this | 15 | | maximum for State fiscal years 2008 through 2010, however, the | 16 | | amount referred to in item (i) shall be increased, as a | 17 | | percentage of the applicable employee payroll, in equal | 18 | | increments calculated from the sum of the required State | 19 | | contribution for State fiscal year 2007 plus the applicable | 20 | | portion of the State's total debt service payments for fiscal | 21 | | year 2007 on the bonds issued in fiscal year 2003 for the | 22 | | purposes of Section 7.2 of the General
Obligation Bond Act, so | 23 | | that, by State fiscal year 2011, the
State is contributing at | 24 | | the rate otherwise required under this Section.
| 25 | | (b-4) Beginning in fiscal year 2018, each employer under | 26 | | this Article shall pay to the System a required contribution |
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| 1 | | determined as a percentage of projected payroll and sufficient | 2 | | to produce an annual amount equal to: | 3 | | (i) for each of fiscal years 2018, 2019, and 2020, the | 4 | | defined benefit normal cost of the defined benefit plan, | 5 | | less the employee contribution, 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; for fiscal | 9 | | year 2021 and each fiscal year thereafter, the defined | 10 | | benefit normal cost of the defined benefit plan, less the | 11 | | employee contribution, plus 2%, for each employee of that | 12 | | employer who has elected or who is deemed to have elected | 13 | | the benefits under Section 1-161 or who has made the | 14 | | election under subsection (b) of Section 1-161; plus | 15 | | (ii) the amount required for that fiscal year to | 16 | | amortize any unfunded actuarial accrued liability | 17 | | associated with the present value of liabilities | 18 | | attributable to the employer's account under Section | 19 | | 16-158.3, determined
as a level percentage of payroll over | 20 | | a 30-year rolling amortization period. | 21 | | In determining contributions required under item (i) of | 22 | | this subsection, the System shall determine an aggregate rate | 23 | | for all employers, expressed as a percentage of projected | 24 | | payroll. | 25 | | In determining the contributions required under item (ii) | 26 | | of this subsection, the amount shall be computed by the System |
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| 1 | | on the basis of the actuarial assumptions and tables used in | 2 | | the most recent actuarial valuation of the System that is | 3 | | available at the time of the computation. | 4 | | The contributions required under this subsection (b-4) | 5 | | shall be paid by an employer concurrently with that employer's | 6 | | payroll payment period. The State, as the actual employer of | 7 | | an employee, shall make the required contributions under this | 8 | | subsection. | 9 | | (c) Payment of the required State contributions and of all | 10 | | pensions,
retirement annuities, death benefits, refunds, and | 11 | | other benefits granted
under or assumed by this System, and | 12 | | all expenses in connection with the
administration and | 13 | | operation thereof, are obligations of the State.
| 14 | | If members are paid from special trust or federal funds | 15 | | which are
administered by the employing unit, whether school | 16 | | district or other
unit, the employing unit shall pay to the | 17 | | System from such
funds the full accruing retirement costs | 18 | | based upon that
service, which, beginning July 1, 2017, shall | 19 | | be at a rate, expressed as a percentage of salary, equal to the | 20 | | total employer's normal cost, expressed as a percentage of | 21 | | payroll, as determined by the System. Employer contributions, | 22 | | based on
salary paid to members from federal funds, may be | 23 | | forwarded by the distributing
agency of the State of Illinois | 24 | | to the System prior to allocation, in an
amount determined in | 25 | | accordance with guidelines established by such
agency and the | 26 | | System. Any contribution for fiscal year 2015 collected as a |
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| 1 | | result of the change made by Public Act 98-674 shall be | 2 | | considered a State contribution under subsection (b-3) of this | 3 | | Section.
| 4 | | (d) Effective July 1, 1986, any employer of a teacher as | 5 | | defined in
paragraph (8) of Section 16-106 shall pay the | 6 | | employer's normal cost
of benefits based upon the teacher's | 7 | | service, in addition to
employee contributions, as determined | 8 | | by the System. Such employer
contributions shall be forwarded | 9 | | monthly in accordance with guidelines
established by the | 10 | | System.
| 11 | | However, with respect to benefits granted under Section | 12 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 13 | | of Section 16-106, the
employer's contribution shall be 12% | 14 | | (rather than 20%) of the member's
highest annual salary rate | 15 | | for each year of creditable service granted, and
the employer | 16 | | shall also pay the required employee contribution on behalf of
| 17 | | the teacher. For the purposes of Sections 16-133.4 and | 18 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 19 | | 16-106 who is serving in that capacity
while on leave of | 20 | | absence from another employer under this Article shall not
be | 21 | | considered an employee of the employer from which the teacher | 22 | | is on leave.
| 23 | | (e) Beginning July 1, 1998, every employer of a teacher
| 24 | | shall pay to the System an employer contribution computed as | 25 | | follows:
| 26 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
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| 1 | | employer
contribution shall be equal to 0.3% of each | 2 | | teacher's salary.
| 3 | | (2) Beginning July 1, 1999 and thereafter, the | 4 | | employer
contribution shall be equal to 0.58% of each | 5 | | teacher's salary.
| 6 | | The school district or other employing unit may pay these | 7 | | employer
contributions out of any source of funding available | 8 | | for that purpose and
shall forward the contributions to the | 9 | | System on the schedule established
for the payment of member | 10 | | contributions.
| 11 | | These employer contributions are intended to offset a | 12 | | portion of the cost
to the System of the increases in | 13 | | retirement benefits resulting from Public Act 90-582.
| 14 | | Each employer of teachers is entitled to a credit against | 15 | | the contributions
required under this subsection (e) with | 16 | | respect to salaries paid to teachers
for the period January 1, | 17 | | 2002 through June 30, 2003, equal to the amount paid
by that | 18 | | employer under subsection (a-5) of Section 6.6 of the State | 19 | | Employees
Group Insurance Act of 1971 with respect to salaries | 20 | | paid to teachers for that
period.
| 21 | | The additional 1% employee contribution required under | 22 | | Section 16-152 by Public Act 90-582
is the responsibility of | 23 | | the teacher and not the
teacher's employer, unless the | 24 | | employer agrees, through collective bargaining
or otherwise, | 25 | | to make the contribution on behalf of the teacher.
| 26 | | If an employer is required by a contract in effect on May |
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| 1 | | 1, 1998 between the
employer and an employee organization to | 2 | | pay, on behalf of all its full-time
employees
covered by this | 3 | | Article, all mandatory employee contributions required under
| 4 | | this Article, then the employer shall be excused from paying | 5 | | the employer
contribution required under this subsection (e) | 6 | | for the balance of the term
of that contract. The employer and | 7 | | the employee organization shall jointly
certify to the System | 8 | | the existence of the contractual requirement, in such
form as | 9 | | the System may prescribe. This exclusion shall cease upon the
| 10 | | termination, extension, or renewal of the contract at any time | 11 | | after May 1,
1998.
| 12 | | (f) If the amount of a teacher's salary for any school year | 13 | | used to determine final average salary exceeds the member's | 14 | | annual full-time salary rate with the same employer for the | 15 | | previous school year by more than 6%, the teacher's employer | 16 | | shall pay to the System, in addition to all other payments | 17 | | required under this Section and in accordance with guidelines | 18 | | established by the System, the present value of the increase | 19 | | in benefits resulting from the portion of the increase in | 20 | | salary that is in excess of 6%. This present value shall be | 21 | | computed by the System on the basis of the actuarial | 22 | | assumptions and tables used in the most recent actuarial | 23 | | valuation of the System that is available at the time of the | 24 | | computation. If a teacher's salary for the 2005-2006 school | 25 | | year is used to determine final average salary under this | 26 | | subsection (f), then the changes made to this subsection (f) |
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| 1 | | by Public Act 94-1057 shall apply in calculating whether the | 2 | | increase in his or her salary is in excess of 6%. For the | 3 | | purposes of this Section, change in employment under Section | 4 | | 10-21.12 of the School Code on or after June 1, 2005 shall | 5 | | constitute a change in employer. The System may require the | 6 | | employer to provide any pertinent information or | 7 | | documentation.
The changes made to this subsection (f) by | 8 | | Public Act 94-1111 apply without regard to whether the teacher | 9 | | was in service on or after its effective date.
| 10 | | Whenever it determines that a payment is or may be | 11 | | required under this subsection, the System shall calculate the | 12 | | amount of the payment and bill the employer for that amount. | 13 | | The bill shall specify the calculations used to determine the | 14 | | amount due. If the employer disputes the amount of the bill, it | 15 | | may, within 30 days after receipt of the bill, apply to the | 16 | | System in writing for a recalculation. The application must | 17 | | specify in detail the grounds of the dispute and, if the | 18 | | employer asserts that the calculation is subject to subsection | 19 | | (g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section, | 20 | | must include an affidavit setting forth and attesting to all | 21 | | facts within the employer's knowledge that are pertinent to | 22 | | the applicability of that subsection. Upon receiving a timely | 23 | | application for recalculation, the System shall review the | 24 | | application and, if appropriate, recalculate the amount due.
| 25 | | The employer contributions required under this subsection | 26 | | (f) may be paid in the form of a lump sum within 90 days after |
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| 1 | | receipt of the bill. If the employer contributions are not | 2 | | paid within 90 days after receipt of the bill, then interest | 3 | | will be charged at a rate equal to the System's annual | 4 | | actuarially assumed rate of return on investment compounded | 5 | | annually from the 91st day after receipt of the bill. Payments | 6 | | must be concluded within 3 years after the employer's receipt | 7 | | of the bill.
| 8 | | (f-1) (Blank). | 9 | | (g) This subsection (g) applies only to payments made or | 10 | | salary increases given on or after June 1, 2005 but before July | 11 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 12 | | require the System to refund any payments received before
July | 13 | | 31, 2006 (the effective date of Public Act 94-1057). | 14 | | When assessing payment for any amount due under subsection | 15 | | (f), the System shall exclude salary increases paid to | 16 | | teachers under contracts or collective bargaining agreements | 17 | | entered into, amended, or renewed before June 1, 2005.
| 18 | | When assessing payment for any amount due under subsection | 19 | | (f), the System shall exclude salary increases paid to a | 20 | | teacher at a time when the teacher is 10 or more years from | 21 | | retirement eligibility under Section 16-132 or 16-133.2.
| 22 | | When assessing payment for any amount due under subsection | 23 | | (f), the System shall exclude salary increases resulting from | 24 | | overload work, including summer school, when the school | 25 | | district has certified to the System, and the System has | 26 | | approved the certification, that (i) the overload work is for |
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| 1 | | the sole purpose of classroom instruction in excess of the | 2 | | standard number of classes for a full-time teacher in a school | 3 | | district during a school year and (ii) the salary increases | 4 | | are equal to or less than the rate of pay for classroom | 5 | | instruction computed on the teacher's current salary and work | 6 | | schedule.
| 7 | | When assessing payment for any amount due under subsection | 8 | | (f), the System shall exclude a salary increase resulting from | 9 | | a promotion (i) for which the employee is required to hold a | 10 | | certificate or supervisory endorsement issued by the State | 11 | | Teacher Certification Board that is a different certification | 12 | | or supervisory endorsement than is required for the teacher's | 13 | | previous position and (ii) to a position that has existed and | 14 | | been filled by a member for no less than one complete academic | 15 | | year and the salary increase from the promotion is an increase | 16 | | that results in an amount no greater than the lesser of the | 17 | | average salary paid for other similar positions in the | 18 | | district requiring the same certification or the amount | 19 | | stipulated in the collective bargaining agreement for a | 20 | | similar position requiring the same certification.
| 21 | | When assessing payment for any amount due under subsection | 22 | | (f), the System shall exclude any payment to the teacher from | 23 | | the State of Illinois or the State Board of Education over | 24 | | which the employer does not have discretion, notwithstanding | 25 | | that the payment is included in the computation of final | 26 | | average salary.
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| 1 | | (g-5) When assessing payment for any amount due under | 2 | | subsection (f), the System shall exclude salary increases | 3 | | resulting from overload or stipend work performed in a school | 4 | | year subsequent to a school year in which the employer was | 5 | | unable to offer or allow to be conducted overload or stipend | 6 | | work due to an emergency declaration limiting such activities. | 7 | | (g-10) When assessing payment for any amount due under | 8 | | subsection (f), the System shall exclude salary increases | 9 | | resulting from increased instructional time that exceeded the | 10 | | instructional time required during the 2019-2020 school year. | 11 | | (g-15) When assessing payment for any amount due under | 12 | | subsection (f), the System shall exclude salary increases | 13 | | resulting from teaching summer school on or after May 1, 2021 | 14 | | and before September 15, 2022. | 15 | | (g-20) When assessing payment for any amount due under | 16 | | subsection (f), the System shall exclude salary increases | 17 | | necessary to bring a school board in compliance with Public | 18 | | Act 101-443 or this amendatory Act of the 103rd General | 19 | | Assembly. | 20 | | (h) When assessing payment for any amount due under | 21 | | subsection (f), the System shall exclude any salary increase | 22 | | described in subsection (g) of this Section given on or after | 23 | | July 1, 2011 but before July 1, 2014 under a contract or | 24 | | collective bargaining agreement entered into, amended, or | 25 | | renewed on or after June 1, 2005 but before July 1, 2011. | 26 | | Notwithstanding any other provision of this Section, any |
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| 1 | | payments made or salary increases given after June 30, 2014 | 2 | | shall be used in assessing payment for any amount due under | 3 | | subsection (f) of this Section.
| 4 | | (i) The System shall prepare a report and file copies of | 5 | | the report with the Governor and the General Assembly by | 6 | | January 1, 2007 that contains all of the following | 7 | | information: | 8 | | (1) The number of recalculations required by the | 9 | | changes made to this Section by Public Act 94-1057 for | 10 | | each employer. | 11 | | (2) The dollar amount by which each employer's | 12 | | contribution to the System was changed due to | 13 | | recalculations required by Public Act 94-1057. | 14 | | (3) The total amount the System received from each | 15 | | employer as a result of the changes made to this Section by | 16 | | Public Act 94-4. | 17 | | (4) The increase in the required State contribution | 18 | | resulting from the changes made to this Section by Public | 19 | | Act 94-1057.
| 20 | | (i-5) For school years beginning on or after July 1, 2017, | 21 | | if the amount of a participant's salary for any school year | 22 | | exceeds the amount of the salary set for the Governor, the | 23 | | participant's employer shall pay to the System, in addition to | 24 | | all other payments required under this Section and in | 25 | | accordance with guidelines established by the System, an | 26 | | amount determined by the System to be equal to the employer |
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| 1 | | normal cost, as established by the System and expressed as a | 2 | | total percentage of payroll, multiplied by the amount of | 3 | | salary in excess of the amount of the salary set for the | 4 | | Governor. This amount shall be computed by the System on the | 5 | | basis of the actuarial assumptions and tables used in the most | 6 | | recent actuarial valuation of the System that is available at | 7 | | the time of the computation. The System may require the | 8 | | employer to provide any pertinent information or | 9 | | documentation. | 10 | | Whenever it determines that a payment is or may be | 11 | | required under this subsection, the System shall calculate the | 12 | | amount of the payment and bill the employer for that amount. | 13 | | The bill shall specify the calculations used to determine the | 14 | | amount due. If the employer disputes the amount of the bill, it | 15 | | may, within 30 days after receipt of the bill, apply to the | 16 | | System in writing for a recalculation. The application must | 17 | | specify in detail the grounds of the dispute. Upon receiving a | 18 | | timely application for recalculation, the System shall review | 19 | | the application and, if appropriate, recalculate the amount | 20 | | due. | 21 | | The employer contributions required under this subsection | 22 | | may be paid in the form of a lump sum within 90 days after | 23 | | receipt of the bill. If the employer contributions are not | 24 | | paid within 90 days after receipt of the bill, then interest | 25 | | will be charged at a rate equal to the System's annual | 26 | | actuarially assumed rate of return on investment compounded |
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| 1 | | annually from the 91st day after receipt of the bill. Payments | 2 | | must be concluded within 3 years after the employer's receipt | 3 | | of the bill. | 4 | | (j) For purposes of determining the required State | 5 | | contribution to the System, the value of the System's assets | 6 | | shall be equal to the actuarial value of the System's assets, | 7 | | which shall be calculated as follows: | 8 | | As of June 30, 2008, the actuarial value of the System's | 9 | | assets shall be equal to the market value of the assets as of | 10 | | that date. In determining the actuarial value of the System's | 11 | | assets for fiscal years after June 30, 2008, any actuarial | 12 | | gains or losses from investment return incurred in a fiscal | 13 | | year shall be recognized in equal annual amounts over the | 14 | | 5-year period following that fiscal year. | 15 | | (k) For purposes of determining the required State | 16 | | contribution to the system for a particular year, the | 17 | | actuarial value of assets shall be assumed to earn a rate of | 18 | | return equal to the system's actuarially assumed rate of | 19 | | return. | 20 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 21 | | 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff. | 22 | | 8-20-21; 102-813, eff. 5-13-22.)
| 23 | | Section 10. The School Code is amended by changing Section | 24 | | 24-8 as follows:
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| 1 | | (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
| 2 | | Sec. 24-8. Minimum salary. In fixing the salaries of | 3 | | teachers, school boards shall pay those who
serve on a | 4 | | full-time basis not less than a rate for the school year that
| 5 | | is based upon training completed in a recognized institution | 6 | | of higher
learning, as follows: for the school year beginning | 7 | | July 1, 1980 and
until the 2020-2021 school year, less than a | 8 | | bachelor's degree, $9,000; 120 semester hours or
more and a | 9 | | bachelor's degree, $10,000; 150 semester hours or more and a
| 10 | | master's degree, $11,000. In fixing the salaries of teachers, | 11 | | a school board shall pay those who serve on a full-time basis a | 12 | | rate not less than (i) $32,076 for the 2020-2021 school year, | 13 | | (ii) $34,576 for the 2021-2022 school year, (iii) $37,076 for | 14 | | the 2022-2023 school year, and (iv) $40,000 for the 2023-2024 | 15 | | school year. The minimum salary rate for each school year | 16 | | thereafter , subject to review by the General Assembly, shall | 17 | | equal the minimum salary rate for the previous school year | 18 | | increased by a percentage equal to the annualized percentage | 19 | | increase, if any, in the Consumer Price Index for All Urban | 20 | | Consumers for all items published by the United States | 21 | | Department of Labor for the 12-month period ending on June 30 | 22 | | of the school year that ended 12 months prior to the school | 23 | | year in which the adjusted salary is to be in effect the | 24 | | previous school year .
| 25 | | In accordance with this Section, the Commission on | 26 | | Government Forecasting and Accountability shall certify and |
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| 1 | | publish the minimum salary rate to be used for the 2024-2025 | 2 | | school year no later than September 30, 2023. By no later than | 3 | | July 20, 2024 and annually on or before each July 20 | 4 | | thereafter, the Commission on Government Forecasting and | 5 | | Accountability shall certify and publish the minimum salary | 6 | | rate to be used for each school year after the 2024-2025 school | 7 | | year in accordance with this Section. | 8 | | On or before January 31, 2020, the Professional Review | 9 | | Panel created under Section 18-8.15 must submit a report to | 10 | | the General Assembly on how State funds and funds distributed | 11 | | under the evidence-based funding formula under Section 18-8.15 | 12 | | may aid the financial effects of the changes made by this | 13 | | amendatory Act of the 101st General Assembly. | 14 | | Based upon previous public school
experience in this State | 15 | | or any other state, territory, dependency or
possession of the | 16 | | United States, or in schools operated by or under the
auspices | 17 | | of the United States, teachers who serve on a full-time basis
| 18 | | shall have their salaries increased to at least the following | 19 | | amounts
above the starting salary for a teacher in such | 20 | | district in the same
classification: with less than a | 21 | | bachelor's degree, $750 after 5 years;
with 120 semester hours | 22 | | or more and a bachelor's degree, $1,000 after 5
years and | 23 | | $1,600 after 8 years; with 150 semester hours or more and a | 24 | | master's
degree, $1,250 after 5 years, $2,000 after 8 years | 25 | | and $2,750 after 13 years.
| 26 | | For the purpose of this Section a teacher's salary shall |
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| 1 | | include any amount
paid by the school district on behalf of the | 2 | | teacher, as teacher contributions,
to the Teachers' Retirement | 3 | | System of the State of Illinois.
| 4 | | If a school board establishes a schedule for teachers' | 5 | | salaries based
on education and experience, not inconsistent | 6 | | with this Section, all certificated
nurses employed by that | 7 | | board shall be paid in accordance with the provisions
of such | 8 | | schedule.
| 9 | | For purposes of this Section, a teacher who submits a | 10 | | certificate of
completion to the school office prior to the | 11 | | first day of the school
term shall be considered to have the | 12 | | degree stated in such certificate.
| 13 | | (Source: P.A. 101-443, eff. 6-1-20 .)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law. |
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