Full Text of SB3549 98th General Assembly
SB3549 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB3549 Introduced 2/14/2014, by Sen. Kyle McCarter SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/1-161 new | | 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 | 40 ILCS 5/14-131 | | 40 ILCS 5/15-155 | from Ch. 108 1/2, par. 15-155 | 40 ILCS 5/16-158 | from Ch. 108 1/2, par. 16-158 | 40 ILCS 5/18-131 | from Ch. 108 1/2, par. 18-131 |
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Amends the Illinois Pension Code. With respect to the 5 State-funded retirement systems: Provides a new funding formula for State contributions, with a funding goal of 100% for fiscal years 2016 through 2047 and 90% thereafter. Provides that no additional service credit may be accrued and no automatic increase in a retirement annuity shall be received. Provides that the pensionable salary of an active participant may not exceed that individual's pensionable salary as of the effective date. Provides that State-funded retirement systems shall establish self-directed retirement plans for all active participants and all employees hired on or after the effective date. Provides that all active participants shall have the option of participating in a self-directed retirement plan. Provides that these changes are controlling over any other law. In the Sections that were amended by Public Act 98-599, deletes the changes made by Public Act 98-599.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 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 changing | 5 | | Sections 2-124, 14-131, 15-155, 16-158, and 18-131 and by | 6 | | adding Section 1-161 as follows: | 7 | | (40 ILCS 5/1-161 new) | 8 | | Sec. 1-161. Pension benefits, end of service credit; | 9 | | self-directed retirement plans. | 10 | | (a) For the purposes of this Section: | 11 | | "Active participant" means a participant in a | 12 | | State-funded retirement system who does not receive an | 13 | | annuity from a State-funded retirement system. | 14 | | "Annuitant" means a participant in a State-funded | 15 | | retirement system who receives an annuity from a | 16 | | State-funded retirement system. | 17 | | "Automatic increase in retirement annuity" means an | 18 | | automatic increase in retirement annuity granted under | 19 | | Section 1-160 or Article 2, 14, 15, 16, or 18 of this Code. | 20 | | "Consumer price index-u" means the index published by | 21 | | the Bureau of Labor Statistics of the United States | 22 | | Department of Labor that measures the average change in | 23 | | prices of goods and services purchased by all urban |
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| 1 | | consumers, United States city average, all items, 1982-84 = | 2 | | 100. | 3 | | "Pensionable salary" means the amount of salary, | 4 | | compensation, or earnings used by the applicable | 5 | | State-funded retirement system to calculate the amount of | 6 | | an individual's retirement annuity. | 7 | | "State-funded retirement system" means a retirement | 8 | | system established under Article 2, 14, 15, 16, or 18 of | 9 | | this Code. | 10 | | (b) No active participant may accrue service credit in a | 11 | | State-funded retirement system on or after the effective date | 12 | | of this amendatory Act of the 98th General Assembly. | 13 | | (c) The pensionable salary of an active participant shall | 14 | | not exceed the pensionable salary of that participant as of the | 15 | | effective date of this amendatory Act of the 98th General | 16 | | Assembly. | 17 | | (d) An annuitant shall not receive an automatic increase in | 18 | | retirement annuity on or after the effective date of this | 19 | | Section. | 20 | | (e) The retirement age of active participants who are | 21 | | ineligible to retire as of the effective date of this | 22 | | amendatory Act of the 98th General Assembly shall be increased | 23 | | according to a schedule developed by the Public Pension | 24 | | Division of the Department of Insurance as soon as practicable | 25 | | after the effective date of this amendatory Act of the 98th | 26 | | General Assembly. The schedule of retirement ages adopted by |
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| 1 | | administrative rule of the Division shall, at a minimum, ensure | 2 | | (i) that persons who first become active participants on or | 3 | | after the effective date of this amendatory Act of the 98th | 4 | | General Assembly are not eligible to retire until reaching the | 5 | | Social Security Normal Retirement Age and (ii) that persons who | 6 | | are active participants but ineligible to retire as of the | 7 | | effective date of this amendatory Act of the 98th General | 8 | | Assembly remain ineligible to retire until reaching age 59. The | 9 | | Division's schedule shall also provide for the adjustment of | 10 | | retirement ages using a matrix that accounts for the current | 11 | | statutory retirement age for various classes of persons and | 12 | | service credit accrued by those persons as of the effective | 13 | | date of this amendatory Act of the 98th General Assembly. | 14 | | (f) As soon as practicable after the effective date of this | 15 | | amendatory Act of the 98th General Assembly, each State-funded | 16 | | retirement system shall establish a self-directed retirement | 17 | | plan that allows individuals who are active participants and | 18 | | individuals who become active participants on or after the | 19 | | effective date of this amendatory Act of the 98th General | 20 | | Assembly the opportunity to accumulate assets for retirement | 21 | | through a combination of employee and employer contributions | 22 | | that may be invested in mutual funds, collective investment | 23 | | funds, or other investment products and used to purchase | 24 | | annuity contracts, either fixed or variable or a combination | 25 | | thereof. The plan must be qualified under the Internal Revenue | 26 | | Code of 1986. Participants in the retirement system established |
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| 1 | | under Article 15 may participate in the self-managed plan | 2 | | established under Section 15-158.2 in lieu of participating in | 3 | | a self-directed retirement plan created under this subsection | 4 | | (f). | 5 | | (g) Each active participant in the retirement system | 6 | | established under Article 14 of this Code who is a noncovered | 7 | | employee and each active participant in a retirement system | 8 | | established under Article 15, 16, or 18 of this Code, except | 9 | | for a participant in the self-managed plan established under | 10 | | Section 15-158.2, shall participate in the self-directed | 11 | | retirement plan established under subsection (f) and | 12 | | contribute 8% of his or her salary, earnings, or compensation, | 13 | | whichever is applicable, to the plan. The employer of each of | 14 | | those active participants shall contribute 7% of salary, | 15 | | earnings, or compensation, whichever is applicable, to that | 16 | | plan on behalf of the participant. | 17 | | Each active participant in the retirement system | 18 | | established under Article 14 who is a covered employee shall | 19 | | participate in the self-directed retirement plan established | 20 | | under subsection (f) and shall contribute 3% of compensation to | 21 | | the plan. The employer of each of those participants shall | 22 | | contribute 3% of compensation to the self-directed retirement | 23 | | plan on behalf of the participant. | 24 | | Each active participant in the retirement system | 25 | | established under Article 2 of this Code shall have the option | 26 | | of participating in the self-directed retirement plan |
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| 1 | | established under subsection (f) and shall be entitled to | 2 | | contribute as much to the plan as is authorized by federal law. | 3 | | However, no employer contribution to the self-directed plan | 4 | | shall be made on behalf of active participants in the | 5 | | retirement system established under Article 2 of this Code. | 6 | | For the purposes of this subsection (g), salary, earnings, | 7 | | or compensation shall not exceed $110,100. However, that amount | 8 | | shall be increased on January 1, 2017 and each January 1 | 9 | | thereafter by the lesser of (i) 3% of that amount or (ii) | 10 | | one-half the annual unadjusted percentage increase (but not | 11 | | less than zero) in the consumer price index-u for the 12 months | 12 | | ending with the September preceding each November 1, as | 13 | | calculated by the Public Pension Division of the Department of | 14 | | Insurance and made available to the boards of the State-funded | 15 | | retirement systems by November 1, 2015 and each November 1 | 16 | | thereafter. | 17 | | (h) The provisions of this amendatory Act of the 98th | 18 | | General Assembly apply notwithstanding any other law, | 19 | | including Section 1-160 of this Code. If there is a conflict | 20 | | between the provisions of this amendatory Act of the 98th | 21 | | General Assembly and any other law, the provisions of this | 22 | | Section shall control.
| 23 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 24 | | Sec. 2-124. Contributions by State.
| 25 | | (a) The State shall make contributions to the System by
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| 1 | | appropriations of amounts which, together with the | 2 | | contributions of
participants, interest earned on investments, | 3 | | and other income
will meet the cost of maintaining and | 4 | | administering the System on a 100% 90%
funded basis in | 5 | | accordance with actuarial recommendations by the end of State | 6 | | fiscal year 2044 .
| 7 | | (b) The Board shall determine the amount of State
| 8 | | contributions required for each fiscal year on the basis of the
| 9 | | actuarial tables and other assumptions adopted by the Board and | 10 | | the
prescribed rate of interest, using the formula in | 11 | | subsection (c).
| 12 | | (c) For State fiscal years 2015 through 2044, the minimum | 13 | | contribution
to the System to be made by the State for each | 14 | | fiscal year shall be an amount
determined by the System to be | 15 | | equal to the sum of (1) the State's portion of the projected | 16 | | normal cost for that fiscal year, plus (2) an amount sufficient | 17 | | to bring the total assets of the
System up to 100% of the total | 18 | | actuarial liabilities of the System by the end of
State fiscal | 19 | | year 2044. In making these determinations, the required State
| 20 | | contribution shall be calculated each year as a level | 21 | | percentage of payroll
over the years remaining to and including | 22 | | fiscal year 2044 and shall be
determined under the projected | 23 | | unit cost method for fiscal year 2015 and under the entry age | 24 | | normal actuarial cost method for fiscal years 2016 through | 25 | | 2044. | 26 | | For State fiscal years 2012 through 2015 2014 , the minimum |
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| 1 | | contribution
to the System to be made by the State for each | 2 | | fiscal year shall be an amount
determined by the System to be | 3 | | sufficient to bring the total assets of the
System up to 90% of | 4 | | 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 State fiscal years 2016 through 2047, the minimum | 11 | | contribution
to the System to be made by the State for each | 12 | | fiscal year shall be an amount
determined by the System to be | 13 | | sufficient to bring the total assets of the
System up to 100% | 14 | | of the total actuarial liabilities of the System by the end of
| 15 | | State fiscal year 2047. In making these determinations, the | 16 | | required State
contribution shall be calculated each year as a | 17 | | level dollar amount
over the years remaining to and including | 18 | | fiscal year 2047 and shall be
determined under the projected | 19 | | unit credit actuarial cost method. | 20 | | For State fiscal years 1996 through 2005, the State | 21 | | contribution to
the System, as a percentage of the applicable | 22 | | employee payroll, shall be
increased in equal annual increments | 23 | | so that by State fiscal year 2011, the
State is contributing at | 24 | | the rate required under this Section.
| 25 | | Notwithstanding any other provision of this Article, the | 26 | | total required State
contribution for State fiscal year 2006 is |
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| 1 | | $4,157,000.
| 2 | | Notwithstanding any other provision of this Article, the | 3 | | total required State
contribution for State fiscal year 2007 is | 4 | | $5,220,300.
| 5 | | For each of State fiscal years 2008 through 2009, the State | 6 | | contribution to
the System, as a percentage of the applicable | 7 | | employee payroll, shall be
increased in equal annual increments | 8 | | from the required State contribution for State fiscal year | 9 | | 2007, so that by State fiscal year 2011, the
State is | 10 | | contributing at the rate otherwise required under this Section.
| 11 | | Notwithstanding any other provision of this Article, the | 12 | | total required State contribution for State fiscal year 2010 is | 13 | | $10,454,000 and shall be made from the proceeds of bonds sold | 14 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 15 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 16 | | expenses determined by the System's share of total bond | 17 | | proceeds, (ii) any amounts received from the General Revenue | 18 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 19 | | proceeds due to the issuance of discounted bonds, if | 20 | | applicable. | 21 | | Notwithstanding any other provision of this Article, the
| 22 | | total required State contribution for State fiscal year 2011 is
| 23 | | the amount recertified by the System on or before April 1, 2011 | 24 | | pursuant to Section 2-134 and shall be made from the proceeds | 25 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 26 | | the General
Obligation Bond Act, less (i) the pro rata share of |
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| 1 | | bond sale
expenses determined by the System's share of total | 2 | | bond
proceeds, (ii) any amounts received from the General | 3 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 4 | | bond
proceeds due to the issuance of discounted bonds, if
| 5 | | applicable. | 6 | | Beginning in State fiscal year 2045, the minimum State | 7 | | contribution for each fiscal year shall be the amount needed to | 8 | | maintain the total assets of the System at 100% of the total | 9 | | actuarial liabilities of the System. | 10 | | Beginning in State fiscal year 2048, the minimum State | 11 | | contribution for
each fiscal year shall be the amount needed to | 12 | | 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 100% 90% . A reference in this Article | 23 | | to the "required State contribution" or any substantially | 24 | | similar term does not include or apply to any amounts payable | 25 | | to the 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 through State | 3 | | fiscal year 2014 , as
calculated under this Section and
| 4 | | certified under Section 2-134, shall not exceed an amount equal | 5 | | to (i) the
amount of the required State contribution that would | 6 | | have been calculated under
this Section for that fiscal year if | 7 | | the System had not received any payments
under subsection (d) | 8 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | 9 | | the 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 | | (d) For purposes of determining the required State | 26 | | contribution to the System, the value of the System's assets |
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| 1 | | shall be equal to the actuarial value of the System's assets, | 2 | | which shall be calculated as follows: | 3 | | As of June 30, 2008, the actuarial value of the System's | 4 | | assets shall be equal to the market value of the assets as of | 5 | | that date. In determining the actuarial value of the System's | 6 | | assets for fiscal years after June 30, 2008, any actuarial | 7 | | gains or losses from investment return incurred in a fiscal | 8 | | year shall be recognized in equal annual amounts over the | 9 | | 5-year period following that fiscal year. | 10 | | (e) For purposes of determining the required State | 11 | | contribution to the system for a particular year, the actuarial | 12 | | value of assets shall be assumed to earn a rate of return equal | 13 | | to the system's actuarially assumed rate of return. | 14 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 15 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 16 | | 7-13-12; 98-599, eff. 6-1-14.)
| 17 | | (40 ILCS 5/14-131)
| 18 | | Sec. 14-131. Contributions by State.
| 19 | | (a) The State shall make contributions to the System by | 20 | | appropriations of
amounts which, together with other employer | 21 | | contributions from trust, federal,
and other funds, employee | 22 | | contributions, investment income, and other income,
will be | 23 | | sufficient to meet the cost of maintaining and administering | 24 | | the System
on a 100% 90% funded basis in accordance with | 25 | | actuarial recommendations by the end of State fiscal year 2044 .
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| 1 | | For the purposes of this Section and Section 14-135.08, | 2 | | references to State
contributions refer only to employer | 3 | | contributions and do not include employee
contributions that | 4 | | are picked up or otherwise paid by the State or a
department on | 5 | | behalf of the employee.
| 6 | | (b) The Board shall determine the total amount of State | 7 | | contributions
required for each fiscal year on the basis of the | 8 | | actuarial tables and other
assumptions adopted by the Board, | 9 | | using the formula in subsection (e).
| 10 | | The Board shall also determine a State contribution rate | 11 | | for each fiscal
year, expressed as a percentage of payroll, | 12 | | based on the total required State
contribution for that fiscal | 13 | | year (less the amount received by the System from
| 14 | | appropriations under Section 8.12 of the State Finance Act and | 15 | | Section 1 of the
State Pension Funds Continuing Appropriation | 16 | | Act, if any, for the fiscal year
ending on the June 30 | 17 | | immediately preceding the applicable November 15
certification | 18 | | deadline), the estimated payroll (including all forms of
| 19 | | compensation) for personal services rendered by eligible | 20 | | employees, and the
recommendations of the actuary.
| 21 | | For the purposes of this Section and Section 14.1 of the | 22 | | State Finance Act,
the term "eligible employees" includes | 23 | | employees who participate in the System,
persons who may elect | 24 | | to participate in the System but have not so elected,
persons | 25 | | who are serving a qualifying period that is required for | 26 | | participation,
and annuitants employed by a department as |
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| 1 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 2 | | (c) Contributions shall be made by the several departments | 3 | | for each pay
period by warrants drawn by the State Comptroller | 4 | | against their respective
funds or appropriations based upon | 5 | | vouchers stating the amount to be so
contributed. These amounts | 6 | | shall be based on the full rate certified by the
Board under | 7 | | Section 14-135.08 for that fiscal year.
From the effective date | 8 | | of this amendatory Act of the 93rd General
Assembly through the | 9 | | payment of the final payroll from fiscal year 2004
| 10 | | appropriations, the several departments shall not make | 11 | | contributions
for the remainder of fiscal year 2004 but shall | 12 | | instead make payments
as required under subsection (a-1) of | 13 | | Section 14.1 of the State Finance Act.
The several departments | 14 | | shall resume those contributions at the commencement of
fiscal | 15 | | year 2005.
| 16 | | (c-1) Notwithstanding subsection (c) of this Section, for | 17 | | fiscal years 2010, 2012, 2013, and 2014 only, contributions by | 18 | | the several departments are not required to be made for General | 19 | | Revenue Funds payrolls processed by the Comptroller. Payrolls | 20 | | paid by the several departments from all other State funds must | 21 | | continue to be processed pursuant to subsection (c) of this | 22 | | Section. | 23 | | (c-2) For State fiscal years 2010, 2012, 2013, and 2014 | 24 | | only, on or as soon as possible after the 15th day of each | 25 | | month, the Board shall submit vouchers for payment of State | 26 | | contributions to the System, in a total monthly amount of |
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| 1 | | one-twelfth of the fiscal year General Revenue Fund | 2 | | contribution as certified by the System pursuant to Section | 3 | | 14-135.08 of the Illinois Pension Code. | 4 | | (d) If an employee is paid from trust funds or federal | 5 | | funds, the
department or other employer shall pay employer | 6 | | contributions from those funds
to the System at the certified | 7 | | rate, unless the terms of the trust or the
federal-State | 8 | | agreement preclude the use of the funds for that purpose, in
| 9 | | which case the required employer contributions shall be paid by | 10 | | the State.
From the effective date of this amendatory
Act of | 11 | | the 93rd General Assembly through the payment of the final
| 12 | | payroll from fiscal year 2004 appropriations, the department or | 13 | | other
employer shall not pay contributions for the remainder of | 14 | | fiscal year
2004 but shall instead make payments as required | 15 | | under subsection (a-1) of
Section 14.1 of the State Finance | 16 | | Act. The department or other employer shall
resume payment of
| 17 | | contributions at the commencement of fiscal year 2005.
| 18 | | (e) For State fiscal years 2015 through 2044, 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 | | equal to the sum of (1) the State's portion of the projected | 22 | | normal cost for that fiscal year, plus (2) an amount sufficient | 23 | | to bring the total assets of the
System up to 100% of the total | 24 | | actuarial liabilities of the System by the end of
State fiscal | 25 | | year 2044. In making these determinations, the required State
| 26 | | contribution shall be calculated each year as a level |
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| 1 | | percentage of payroll
over the years remaining to and including | 2 | | fiscal year 2044 and shall be
determined under the projected | 3 | | unit cost method for fiscal year 2015 and under the entry age | 4 | | normal actuarial cost method for fiscal years 2016 through | 5 | | 2044. | 6 | | For State fiscal years 2012 through 2015 2014 , the minimum | 7 | | contribution
to the System to be made by the State for each | 8 | | fiscal year shall be an amount
determined by the System to be | 9 | | sufficient to bring the total assets of the
System up to 90% of | 10 | | the total actuarial liabilities of the System by the end
of | 11 | | State fiscal year 2045. In making these determinations, the | 12 | | required State
contribution shall be calculated each year as a | 13 | | level percentage of payroll
over the years remaining to and | 14 | | including fiscal year 2045 and shall be
determined under the | 15 | | projected unit credit actuarial cost method.
| 16 | | For State fiscal years 2016 through 2047, the minimum | 17 | | contribution
to the System to be made by the State for each | 18 | | fiscal year shall be an amount
determined by the System to be | 19 | | sufficient to bring the total assets of the
System up to 100% | 20 | | of the total actuarial liabilities of the System by the end
of | 21 | | State fiscal year 2047. In making these determinations, the | 22 | | required State
contribution shall be calculated each year as a | 23 | | level dollar amount
over the years remaining to and including | 24 | | fiscal year 2047 and shall be
determined under the projected | 25 | | unit credit actuarial cost method. | 26 | | For State fiscal years 1996 through 2005, the State |
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| 1 | | contribution to
the System, as a percentage of the applicable | 2 | | employee payroll, shall be
increased in equal annual increments | 3 | | so that by State fiscal year 2011, the
State is contributing at | 4 | | the rate required under this Section; except that
(i) for State | 5 | | fiscal year 1998, for all purposes of this Code and any other
| 6 | | law of this State, the certified percentage of the applicable | 7 | | employee payroll
shall be 5.052% for employees earning eligible | 8 | | creditable service under Section
14-110 and 6.500% for all | 9 | | other employees, notwithstanding any contrary
certification | 10 | | made under Section 14-135.08 before the effective date of this
| 11 | | amendatory Act of 1997, and (ii)
in the following specified | 12 | | State fiscal years, the State contribution to
the System shall | 13 | | not be less than the following indicated percentages of the
| 14 | | applicable employee payroll, even if the indicated percentage | 15 | | will produce a
State contribution in excess of the amount | 16 | | otherwise required under this
subsection and subsection (a):
| 17 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 18 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State
contribution to the System for State | 21 | | fiscal year 2006 is $203,783,900.
| 22 | | Notwithstanding any other provision of this Article, the | 23 | | total required State
contribution to the System for State | 24 | | fiscal year 2007 is $344,164,400.
| 25 | | For each of State fiscal years 2008 through 2009, the State | 26 | | contribution to
the System, as a percentage of the applicable |
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| 1 | | employee payroll, shall be
increased in equal annual increments | 2 | | from the required State contribution for State fiscal year | 3 | | 2007, so that by State fiscal year 2011, the
State is | 4 | | contributing at the rate otherwise required under this Section.
| 5 | | Notwithstanding any other provision of this Article, the | 6 | | total required State General Revenue Fund contribution for | 7 | | State fiscal year 2010 is $723,703,100 and shall be made from | 8 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 9 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 10 | | pro rata share of bond sale expenses determined by the System's | 11 | | share of total bond proceeds, (ii) any amounts received from | 12 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 13 | | reduction in bond proceeds due to the issuance of discounted | 14 | | bonds, if applicable. | 15 | | Notwithstanding any other provision of this Article, the
| 16 | | total required State General Revenue Fund contribution for
| 17 | | State fiscal year 2011 is the amount recertified by the System | 18 | | on or before April 1, 2011 pursuant to Section 14-135.08 and | 19 | | shall be made from
the proceeds of bonds sold in fiscal year | 20 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond | 21 | | Act, less (i) the
pro rata share of bond sale expenses | 22 | | determined by the System's
share of total bond proceeds, (ii) | 23 | | any amounts received from
the General Revenue Fund in fiscal | 24 | | year 2011, and (iii) any
reduction in bond proceeds due to the | 25 | | issuance of discounted
bonds, if applicable. | 26 | | Beginning in State fiscal year 2045, the minimum State |
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| 1 | | contribution for each fiscal year shall be the amount needed to | 2 | | maintain the total assets of the System at 100% of the total | 3 | | actuarial liabilities of the System. | 4 | | Beginning in State fiscal year 2048, the minimum State | 5 | | contribution for
each fiscal year shall be the amount needed to | 6 | | maintain the total assets of
the System at 90% of the total | 7 | | actuarial liabilities of the System.
| 8 | | Amounts received by the System pursuant to Section 25 of | 9 | | the Budget Stabilization Act or Section 8.12 of the State | 10 | | Finance Act in any fiscal year do not reduce and do not | 11 | | constitute payment of any portion of the minimum State | 12 | | contribution required under this Article in that fiscal year. | 13 | | Such amounts shall not reduce, and shall not be included in the | 14 | | calculation of, the required State contributions under this | 15 | | Article in any future year until the System has reached a | 16 | | funding ratio of at least 100% 90% . A reference in this Article | 17 | | to the "required State contribution" or any substantially | 18 | | similar term does not include or apply to any amounts payable | 19 | | to the System under Section 25 of the Budget Stabilization Act.
| 20 | | Notwithstanding any other provision of this Section, the | 21 | | required State
contribution for State fiscal year 2005 and for | 22 | | fiscal year 2008 and each fiscal year thereafter through State | 23 | | fiscal year 2014 , as
calculated under this Section and
| 24 | | certified under Section 14-135.08, shall not exceed an amount | 25 | | equal to (i) the
amount of the required State contribution that | 26 | | would have been calculated under
this Section for that fiscal |
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| 1 | | year if the System had not received any payments
under | 2 | | subsection (d) of Section 7.2 of the General Obligation Bond | 3 | | Act, minus
(ii) the portion of the State's total debt service | 4 | | payments for that fiscal
year on the bonds issued in fiscal | 5 | | year 2003 for the purposes of that Section 7.2, as determined
| 6 | | and certified by the Comptroller, that is the same as the | 7 | | System's portion of
the total moneys distributed under | 8 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 9 | | Act. In determining this maximum for State fiscal years 2008 | 10 | | through 2010, however, the amount referred to in item (i) shall | 11 | | be increased, as a percentage of the applicable employee | 12 | | payroll, in equal increments calculated from the sum of the | 13 | | required State contribution for State fiscal year 2007 plus the | 14 | | applicable portion of the State's total debt service payments | 15 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 16 | | for the purposes of Section 7.2 of the General
Obligation Bond | 17 | | Act, so that, by State fiscal year 2011, the
State is | 18 | | contributing at the rate otherwise required under this Section.
| 19 | | (f) After the submission of all payments for eligible | 20 | | employees
from personal services line items in fiscal year 2004 | 21 | | have been made,
the Comptroller shall provide to the System a | 22 | | certification of the sum
of all fiscal year 2004 expenditures | 23 | | for personal services that would
have been covered by payments | 24 | | to the System under this Section if the
provisions of this | 25 | | amendatory Act of the 93rd General Assembly had not been
| 26 | | enacted. Upon
receipt of the certification, the System shall |
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| 1 | | determine the amount
due to the System based on the full rate | 2 | | certified by the Board under
Section 14-135.08 for fiscal year | 3 | | 2004 in order to meet the State's
obligation under this | 4 | | Section. The System shall compare this amount
due to the amount | 5 | | received by the System in fiscal year 2004 through
payments | 6 | | under this Section and under Section 6z-61 of the State Finance | 7 | | Act.
If the amount
due is more than the amount received, the | 8 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 9 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 10 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 11 | | Continuing Appropriation Act. If the amount due is less than | 12 | | the
amount received, the
difference shall be termed the "Fiscal | 13 | | Year 2004 Overpayment" for purposes of
this Section, and the | 14 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 15 | | the Pension Contribution Fund as soon as practicable
after the | 16 | | certification.
| 17 | | (g) For purposes of determining the required State | 18 | | contribution to the System, the value of the System's assets | 19 | | shall be equal to the actuarial value of the System's assets, | 20 | | which shall be calculated as follows: | 21 | | As of June 30, 2008, the actuarial value of the System's | 22 | | assets shall be equal to the market value of the assets as of | 23 | | that date. In determining the actuarial value of the System's | 24 | | assets for fiscal years after June 30, 2008, any actuarial | 25 | | gains or losses from investment return incurred in a fiscal | 26 | | year shall be recognized in equal annual amounts over the |
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| 1 | | 5-year period following that fiscal year. | 2 | | (h) For purposes of determining the required State | 3 | | contribution to the System for a particular year, the actuarial | 4 | | value of assets shall be assumed to earn a rate of return equal | 5 | | to the System's actuarially assumed rate of return. | 6 | | (i) After the submission of all payments for eligible | 7 | | employees from personal services line items paid from the | 8 | | General Revenue Fund in fiscal year 2010 have been made, the | 9 | | Comptroller shall provide to the System a certification of the | 10 | | sum of all fiscal year 2010 expenditures for personal services | 11 | | that would have been covered by payments to the System under | 12 | | this Section if the provisions of this amendatory Act of the | 13 | | 96th General Assembly had not been enacted. Upon receipt of the | 14 | | certification, the System shall determine the amount due to the | 15 | | System based on the full rate certified by the Board under | 16 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 17 | | State's obligation under this Section. The System shall compare | 18 | | this amount due to the amount received by the System in fiscal | 19 | | year 2010 through payments under this Section. If the amount | 20 | | due is more than the amount received, the difference shall be | 21 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this | 22 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 23 | | under Section 1.2 of the State Pension Funds Continuing | 24 | | Appropriation Act. If the amount due is less than the amount | 25 | | received, the difference shall be termed the "Fiscal Year 2010 | 26 | | Overpayment" for purposes of this Section, and the Fiscal Year |
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| 1 | | 2010 Overpayment shall be repaid by the System to the General | 2 | | Revenue Fund as soon as practicable after the certification. | 3 | | (j) After the submission of all payments for eligible | 4 | | employees from personal services line items paid from the | 5 | | General Revenue Fund in fiscal year 2011 have been made, the | 6 | | Comptroller shall provide to the System a certification of the | 7 | | sum of all fiscal year 2011 expenditures for personal services | 8 | | that would have been covered by payments to the System under | 9 | | this Section if the provisions of this amendatory Act of the | 10 | | 96th General Assembly had not been enacted. Upon receipt of the | 11 | | certification, the System shall determine the amount due to the | 12 | | System based on the full rate certified by the Board under | 13 | | Section 14-135.08 for fiscal year 2011 in order to meet the | 14 | | State's obligation under this Section. The System shall compare | 15 | | this amount due to the amount received by the System in fiscal | 16 | | year 2011 through payments under this Section. If the amount | 17 | | due is more than the amount received, the difference shall be | 18 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this | 19 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | 20 | | under Section 1.2 of the State Pension Funds Continuing | 21 | | Appropriation Act. If the amount due is less than the amount | 22 | | received, the difference shall be termed the "Fiscal Year 2011 | 23 | | Overpayment" for purposes of this Section, and the Fiscal Year | 24 | | 2011 Overpayment shall be repaid by the System to the General | 25 | | Revenue Fund as soon as practicable after the certification. | 26 | | (k) For fiscal years 2012 through 2014 only, after the |
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| 1 | | submission of all payments for eligible employees from personal | 2 | | services line items paid from the General Revenue Fund in the | 3 | | fiscal year have been made, the Comptroller shall provide to | 4 | | the System a certification of the sum of all expenditures in | 5 | | the fiscal year for personal services. Upon receipt of the | 6 | | certification, the System shall determine the amount due to the | 7 | | System based on the full rate certified by the Board under | 8 | | Section 14-135.08 for the fiscal year in order to meet the | 9 | | State's obligation under this Section. The System shall compare | 10 | | this amount due to the amount received by the System for the | 11 | | fiscal year. If the amount due is more than the amount | 12 | | received, the difference shall be termed the "Prior Fiscal Year | 13 | | Shortfall" for purposes of this Section, and the Prior Fiscal | 14 | | Year Shortfall shall be satisfied under Section 1.2 of the | 15 | | State Pension Funds Continuing Appropriation Act. If the amount | 16 | | due is less than the amount received, the difference shall be | 17 | | termed the "Prior Fiscal Year Overpayment" for purposes of this | 18 | | Section, and the Prior Fiscal Year Overpayment shall be repaid | 19 | | by the System to the General Revenue Fund as soon as | 20 | | practicable after the certification. | 21 | | (Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, | 22 | | eff. 6-19-13; 98-599, eff. 6-1-14.)
| 23 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 24 | | Sec. 15-155. Employer contributions.
| 25 | | (a) The State of Illinois shall make contributions by |
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| 1 | | appropriations of
amounts which, together with the other | 2 | | employer contributions from trust,
federal, and other funds, | 3 | | employee contributions, income from investments,
and other | 4 | | income of this System, will be sufficient to meet the cost of
| 5 | | maintaining and administering the System on a 100% 90% funded | 6 | | basis in accordance
with actuarial recommendations by the end | 7 | | of State fiscal year 2044 .
| 8 | | The Board shall determine the amount of State contributions | 9 | | required for
each fiscal year on the basis of the actuarial | 10 | | tables and other assumptions
adopted by the Board and the | 11 | | recommendations of the actuary, using the formula
in subsection | 12 | | (a-1).
| 13 | | (a-1) For State fiscal years 2015 through 2044, the minimum | 14 | | contribution
to the System to be made by the State for each | 15 | | fiscal year shall be an amount
determined by the System to be | 16 | | equal to the sum of (1) the State's portion of the projected | 17 | | normal cost for that fiscal year, plus (2) an amount sufficient | 18 | | to bring the total assets of the System up to 100% of the total | 19 | | actuarial liabilities of the System by the end of the State | 20 | | fiscal year 2044. In making these determinations, the required | 21 | | State contribution shall be calculated each year as a level | 22 | | percentage of payroll over the years remaining to and including | 23 | | fiscal year 2044 and shall be determined under the projected | 24 | | unit cost method for fiscal year 2015 and under the entry age | 25 | | normal actuarial cost method for fiscal years 2016 through | 26 | | 2044. |
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| 1 | | For State fiscal years 2012 through 2015 2014 , the minimum | 2 | | contribution
to the System to be made by the State for each | 3 | | fiscal year shall be an amount
determined by the System to be | 4 | | sufficient to bring the total assets of the
System up to 90% of | 5 | | the total actuarial liabilities of the System by the end of
| 6 | | State fiscal year 2045. In making these determinations, the | 7 | | required State
contribution shall be calculated each year as a | 8 | | level percentage of payroll
over the years remaining to and | 9 | | including fiscal year 2045 and shall be
determined under the | 10 | | projected unit credit actuarial cost method.
| 11 | | For State fiscal years 2016 through 2047, the minimum | 12 | | contribution
to the System to be made by the State for each | 13 | | fiscal year shall be an amount
determined by the System to be | 14 | | sufficient to bring the total assets of the
System up to 100% | 15 | | of the total actuarial liabilities of the System by the end of
| 16 | | State fiscal year 2047. In making these determinations, the | 17 | | required State
contribution shall be calculated each year as a | 18 | | level dollar amount
over the years remaining to and including | 19 | | fiscal year 2047 and shall be
determined under the projected | 20 | | unit credit actuarial cost method. | 21 | | For State fiscal years 1996 through 2005, the State | 22 | | contribution to
the System, as a percentage of the applicable | 23 | | employee payroll, shall be
increased in equal annual increments | 24 | | so that by State fiscal year 2011, the
State is contributing at | 25 | | the rate required under this Section.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State
contribution for State fiscal year 2006 is | 2 | | $166,641,900.
| 3 | | Notwithstanding any other provision of this Article, the | 4 | | total required State
contribution for State fiscal year 2007 is | 5 | | $252,064,100.
| 6 | | For each of State fiscal years 2008 through 2009, the State | 7 | | contribution to
the System, as a percentage of the applicable | 8 | | employee payroll, shall be
increased in equal annual increments | 9 | | from the required State contribution for State fiscal year | 10 | | 2007, so that by State fiscal year 2011, the
State is | 11 | | contributing at the rate otherwise required under this Section.
| 12 | | Notwithstanding any other provision of this Article, the | 13 | | total required State contribution for State fiscal year 2010 is | 14 | | $702,514,000 and shall be made from the State Pensions Fund and | 15 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 16 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 17 | | share of bond sale expenses determined by the System's share of | 18 | | total bond proceeds, (ii) any amounts received from the General | 19 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 20 | | proceeds due to the issuance of discounted bonds, if | 21 | | applicable. | 22 | | Notwithstanding any other provision of this Article, the
| 23 | | total required State contribution for State fiscal year 2011 is
| 24 | | the amount recertified by the System on or before April 1, 2011 | 25 | | pursuant to Section 15-165 and shall be made from the State | 26 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
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| 1 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 2 | | less (i) the pro rata
share of bond sale expenses determined by | 3 | | the System's share of
total bond proceeds, (ii) any amounts | 4 | | received from the General
Revenue Fund in fiscal year 2011, and | 5 | | (iii) any reduction in bond
proceeds due to the issuance of | 6 | | discounted bonds, if
applicable. | 7 | | Beginning in State fiscal year 2045, the minimum | 8 | | contribution
for each fiscal year shall be the amount
needed to | 9 | | maintain the total assets of the System at 100% of the total | 10 | | liabilities of the System. | 11 | | Beginning in State fiscal year 2048, the minimum State | 12 | | contribution for
each fiscal year shall be the amount needed to | 13 | | maintain the total assets of
the System at 90% of the total | 14 | | actuarial liabilities of the System.
| 15 | | Amounts received by the System pursuant to Section 25 of | 16 | | the Budget Stabilization Act or Section 8.12 of the State | 17 | | Finance Act in any fiscal year do not reduce and do not | 18 | | constitute payment of any portion of the minimum State | 19 | | contribution required under this Article in that fiscal year. | 20 | | Such amounts shall not reduce, and shall not be included in the | 21 | | calculation of, the required State contributions under this | 22 | | Article in any future year until the System has reached a | 23 | | funding ratio of at least 100% 90% . A reference in this Article | 24 | | to the "required State contribution" or any substantially | 25 | | similar term does not include or apply to any amounts payable | 26 | | to the System under Section 25 of the Budget Stabilization Act. |
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| 1 | | Notwithstanding any other provision of this Section, the | 2 | | required State
contribution for State fiscal year 2005 and for | 3 | | fiscal year 2008 and each fiscal year thereafter through State | 4 | | fiscal year 2014 , as
calculated under this Section and
| 5 | | certified under Section 15-165, shall not exceed an amount | 6 | | equal to (i) the
amount of the required State contribution that | 7 | | would have been calculated under
this Section for that fiscal | 8 | | year if the System had not received any payments
under | 9 | | subsection (d) of Section 7.2 of the General Obligation Bond | 10 | | Act, minus
(ii) the portion of the State's total debt service | 11 | | payments for that fiscal
year on the bonds issued in fiscal | 12 | | year 2003 for the purposes of that Section 7.2, as determined
| 13 | | and certified by the Comptroller, that is the same as the | 14 | | System's portion of
the total moneys distributed under | 15 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 16 | | Act. In determining this maximum for State fiscal years 2008 | 17 | | through 2010, however, the amount referred to in item (i) shall | 18 | | be increased, as a percentage of the applicable employee | 19 | | payroll, in equal increments calculated from the sum of the | 20 | | required State contribution for State fiscal year 2007 plus the | 21 | | applicable portion of the State's total debt service payments | 22 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 23 | | for the purposes of Section 7.2 of the General
Obligation Bond | 24 | | Act, so that, by State fiscal year 2011, the
State is | 25 | | contributing at the rate otherwise required under this Section.
| 26 | | (b) If an employee is paid from trust or federal funds, the |
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| 1 | | employer
shall pay to the Board contributions from those funds | 2 | | which are
sufficient to cover the accruing normal costs on | 3 | | behalf of the employee.
However, universities having employees | 4 | | who are compensated out of local
auxiliary funds, income funds, | 5 | | or service enterprise funds are not required
to pay such | 6 | | contributions on behalf of those employees. The local auxiliary
| 7 | | funds, income funds, and service enterprise funds of | 8 | | universities shall not be
considered trust funds for the | 9 | | purpose of this Article, but funds of alumni
associations, | 10 | | foundations, and athletic associations which are affiliated | 11 | | with
the universities included as employers under this Article | 12 | | and other employers
which do not receive State appropriations | 13 | | are considered to be trust funds for
the purpose of this | 14 | | Article.
| 15 | | (b-1) The City of Urbana and the City of Champaign shall | 16 | | each make
employer contributions to this System for their | 17 | | respective firefighter
employees who participate in this | 18 | | System pursuant to subsection (h) of Section
15-107. The rate | 19 | | of contributions to be made by those municipalities shall
be | 20 | | determined annually by the Board on the basis of the actuarial | 21 | | assumptions
adopted by the Board and the recommendations of the | 22 | | actuary, and shall be
expressed as a percentage of salary for | 23 | | each such employee. The Board shall
certify the rate to the | 24 | | affected municipalities as soon as may be practical.
The | 25 | | employer contributions required under this subsection shall be | 26 | | remitted by
the municipality to the System at the same time and |
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| 1 | | in the same manner as
employee contributions.
| 2 | | (c) Through State fiscal year 1995: The total employer | 3 | | contribution shall
be apportioned among the various funds of | 4 | | the State and other employers,
whether trust, federal, or other | 5 | | funds, in accordance with actuarial procedures
approved by the | 6 | | Board. State of Illinois contributions for employers receiving
| 7 | | State appropriations for personal services shall be payable | 8 | | from appropriations
made to the employers or to the System. The | 9 | | contributions for Class I
community colleges covering earnings | 10 | | other than those paid from trust and
federal funds, shall be | 11 | | payable solely from appropriations to the Illinois
Community | 12 | | College Board or the System for employer contributions.
| 13 | | (d) Beginning in State fiscal year 1996, the required State | 14 | | contributions
to the System shall be appropriated directly to | 15 | | the System and shall be payable
through vouchers issued in | 16 | | accordance with subsection (c) of Section 15-165, except as | 17 | | provided in subsection (g).
| 18 | | (e) The State Comptroller shall draw warrants payable to | 19 | | the System upon
proper certification by the System or by the | 20 | | employer in accordance with the
appropriation laws and this | 21 | | Code.
| 22 | | (f) Normal costs under this Section means liability for
| 23 | | pensions and other benefits which accrues to the System because | 24 | | of the
credits earned for service rendered by the participants | 25 | | during the
fiscal year and expenses of administering the | 26 | | System, but shall not
include the principal of or any |
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| 1 | | redemption premium or interest on any bonds
issued by the Board | 2 | | or any expenses incurred or deposits required in
connection | 3 | | therewith.
| 4 | | (g) If the amount of a participant's earnings for any | 5 | | academic year used to determine the final rate of earnings, | 6 | | determined on a full-time equivalent basis, exceeds the amount | 7 | | of his or her earnings with the same employer for the previous | 8 | | academic year, determined on a full-time equivalent basis, by | 9 | | more than 6%, the participant's employer shall pay to the | 10 | | System, in addition to all other payments required under this | 11 | | Section and in accordance with guidelines established by the | 12 | | System, the present value of the increase in benefits resulting | 13 | | from the portion of the increase in earnings that is in excess | 14 | | of 6%. This present value shall be computed by the System on | 15 | | the basis of the actuarial assumptions and tables used in the | 16 | | most recent actuarial valuation of the System that is available | 17 | | at the time of the computation. The System may require the | 18 | | employer to provide any pertinent information or | 19 | | documentation. | 20 | | Whenever it determines that a payment is or may be required | 21 | | under this subsection (g), the System shall calculate the | 22 | | amount of the payment and bill the employer for that amount. | 23 | | The bill shall specify the calculations used to determine the | 24 | | amount due. If the employer disputes the amount of the bill, it | 25 | | may, within 30 days after receipt of the bill, apply to the | 26 | | System in writing for a recalculation. The application must |
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| 1 | | specify in detail the grounds of the dispute and, if the | 2 | | employer asserts that the calculation is subject to subsection | 3 | | (h) or (i) of this Section, must include an affidavit setting | 4 | | forth and attesting to all facts within the employer's | 5 | | knowledge that are pertinent to the applicability of subsection | 6 | | (h) or (i). Upon receiving a timely application for | 7 | | recalculation, the System shall review the application and, if | 8 | | appropriate, recalculate the amount due.
| 9 | | The employer contributions required under this subsection | 10 | | (g) may be paid in the form of a lump sum within 90 days after | 11 | | receipt of the bill. If the employer contributions are not paid | 12 | | within 90 days after receipt of the bill, then interest will be | 13 | | charged at a rate equal to the System's annual actuarially | 14 | | assumed rate of return on investment compounded annually from | 15 | | the 91st day after receipt of the bill. Payments must be | 16 | | concluded within 3 years after the employer's receipt of the | 17 | | bill. | 18 | | (h) This subsection (h) applies only to payments made or | 19 | | salary increases given on or after June 1, 2005 but before July | 20 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 21 | | require the System to refund any payments received before July | 22 | | 31, 2006 (the effective date of Public Act 94-1057). | 23 | | When assessing payment for any amount due under subsection | 24 | | (g), the System shall exclude earnings increases paid to | 25 | | participants under contracts or collective bargaining | 26 | | agreements entered into, amended, or renewed before June 1, |
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| 1 | | 2005.
| 2 | | When assessing payment for any amount due under subsection | 3 | | (g), the System shall exclude earnings increases paid to a | 4 | | participant at a time when the participant is 10 or more years | 5 | | from retirement eligibility under Section 15-135.
| 6 | | When assessing payment for any amount due under subsection | 7 | | (g), the System shall exclude earnings increases resulting from | 8 | | overload work, including a contract for summer teaching, or | 9 | | overtime when the employer has certified to the System, and the | 10 | | System has approved the certification, that: (i) in the case of | 11 | | overloads (A) the overload work is for the sole purpose of | 12 | | academic instruction in excess of the standard number of | 13 | | instruction hours for a full-time employee occurring during the | 14 | | academic year that the overload is paid and (B) the earnings | 15 | | increases are equal to or less than the rate of pay for | 16 | | academic instruction computed using the participant's current | 17 | | salary rate and work schedule; and (ii) in the case of | 18 | | overtime, the overtime was necessary for the educational | 19 | | mission. | 20 | | When assessing payment for any amount due under subsection | 21 | | (g), the System shall exclude any earnings increase resulting | 22 | | from (i) a promotion for which the employee moves from one | 23 | | classification to a higher classification under the State | 24 | | Universities Civil Service System, (ii) a promotion in academic | 25 | | rank for a tenured or tenure-track faculty position, or (iii) a | 26 | | promotion that the Illinois Community College Board has |
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| 1 | | recommended in accordance with subsection (k) of this Section. | 2 | | These earnings increases shall be excluded only if the | 3 | | promotion is to a position that has existed and been filled by | 4 | | a member for no less than one complete academic year and the | 5 | | earnings increase as a result of the promotion is an increase | 6 | | that results in an amount no greater than the average salary | 7 | | paid for other similar positions. | 8 | | (i) When assessing payment for any amount due under | 9 | | subsection (g), the System shall exclude any salary increase | 10 | | described in subsection (h) of this Section given on or after | 11 | | July 1, 2011 but before July 1, 2014 under a contract or | 12 | | collective bargaining agreement entered into, amended, or | 13 | | renewed on or after June 1, 2005 but before July 1, 2011. | 14 | | Notwithstanding any other provision of this Section, any | 15 | | payments made or salary increases given after June 30, 2014 | 16 | | shall be used in assessing payment for any amount due under | 17 | | subsection (g) of this Section.
| 18 | | (j) The System shall prepare a report and file copies of | 19 | | the report with the Governor and the General Assembly by | 20 | | January 1, 2007 that contains all of the following information: | 21 | | (1) The number of recalculations required by the | 22 | | changes made to this Section by Public Act 94-1057 for each | 23 | | employer. | 24 | | (2) The dollar amount by which each employer's | 25 | | contribution to the System was changed due to | 26 | | recalculations required by Public Act 94-1057. |
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| 1 | | (3) The total amount the System received from each | 2 | | employer as a result of the changes made to this Section by | 3 | | Public Act 94-4. | 4 | | (4) The increase in the required State contribution | 5 | | resulting from the changes made to this Section by Public | 6 | | Act 94-1057. | 7 | | (k) The Illinois Community College Board shall adopt rules | 8 | | for recommending lists of promotional positions submitted to | 9 | | the Board by community colleges and for reviewing the | 10 | | promotional lists on an annual basis. When recommending | 11 | | promotional lists, the Board shall consider the similarity of | 12 | | the positions submitted to those positions recognized for State | 13 | | universities by the State Universities Civil Service System. | 14 | | The Illinois Community College Board shall file a copy of its | 15 | | findings with the System. The System shall consider the | 16 | | findings of the Illinois Community College Board when making | 17 | | determinations under this Section. The System shall not exclude | 18 | | any earnings increases resulting from a promotion when the | 19 | | promotion was not submitted by a community college. Nothing in | 20 | | this subsection (k) shall require any community college to | 21 | | submit any information to the Community College Board.
| 22 | | (l) For purposes of determining the required State | 23 | | contribution to the System, the value of the System's assets | 24 | | shall be equal to the actuarial value of the System's assets, | 25 | | which shall be calculated as follows: | 26 | | As of June 30, 2008, the actuarial value of the System's |
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| 1 | | assets shall be equal to the market value of the assets as of | 2 | | that date. In determining the actuarial value of the System's | 3 | | assets for fiscal years after June 30, 2008, any actuarial | 4 | | gains or losses from investment return incurred in a fiscal | 5 | | year shall be recognized in equal annual amounts over the | 6 | | 5-year period following that fiscal year. | 7 | | (m) For purposes of determining the required State | 8 | | contribution to the system for a particular year, the actuarial | 9 | | value of assets shall be assumed to earn a rate of return equal | 10 | | to the system's actuarially assumed rate of return. | 11 | | (Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13; | 12 | | 98-463, eff. 8-16-13; 98-599, eff. 6-1-14.)
| 13 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 14 | | Sec. 16-158. Contributions by State and other employing | 15 | | units.
| 16 | | (a) The State shall make contributions to the System by | 17 | | means of
appropriations from the Common School Fund and other | 18 | | State funds of amounts
which, together with other employer | 19 | | contributions, employee contributions,
investment income, and | 20 | | other income, will be sufficient to meet the cost of
| 21 | | maintaining and administering the System on a 100% 90% funded | 22 | | basis in accordance
with actuarial recommendations by the end | 23 | | of State fiscal year 2044 .
| 24 | | The Board shall determine the amount of State contributions | 25 | | required for
each fiscal year on the basis of the actuarial |
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| 1 | | tables and other assumptions
adopted by the Board and the | 2 | | recommendations of the actuary, using the formula
in subsection | 3 | | (b-3).
| 4 | | (a-1) Annually, on or before November 15 through November | 5 | | 15, 2011, the Board shall certify to the
Governor the amount of | 6 | | the required State contribution for the coming fiscal
year. The | 7 | | certification under this subsection (a-1) shall include a copy | 8 | | of the actuarial recommendations
upon which it is based.
| 9 | | On or before May 1, 2004, the Board shall recalculate and | 10 | | recertify to
the Governor the amount of the required State | 11 | | contribution to the System for
State fiscal year 2005, taking | 12 | | into account the amounts appropriated to and
received by the | 13 | | System under subsection (d) of Section 7.2 of the General
| 14 | | Obligation Bond Act.
| 15 | | On or before July 1, 2005, the Board shall recalculate and | 16 | | recertify
to the Governor the amount of the required State
| 17 | | contribution to the System for State fiscal year 2006, taking | 18 | | into account the changes in required State contributions made | 19 | | by this amendatory Act of the 94th General Assembly.
| 20 | | On or before April 1, 2011, the Board shall recalculate and | 21 | | recertify to the Governor the amount of the required State | 22 | | contribution to the System for State fiscal year 2011, applying | 23 | | the changes made by Public Act 96-889 to the System's assets | 24 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 25 | | was approved on that date. | 26 | | (a-5) On or before November 1 of each year, beginning |
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| 1 | | November 1, 2012, the Board shall submit to the State Actuary, | 2 | | the Governor, and the General Assembly a proposed certification | 3 | | of the amount of the required State contribution to the System | 4 | | for the next fiscal year, along with all of the actuarial | 5 | | assumptions, calculations, and data upon which that proposed | 6 | | certification is based. On or before January 1 of each year, | 7 | | beginning January 1, 2013, the State Actuary shall issue a | 8 | | preliminary report concerning the proposed certification and | 9 | | identifying, if necessary, recommended changes in actuarial | 10 | | assumptions that the Board must consider before finalizing its | 11 | | certification of the required State contributions. | 12 | | On or before January 15, 2013 and each January 15 | 13 | | thereafter, the Board shall certify to the Governor and the | 14 | | General Assembly the amount of the required State contribution | 15 | | for the next fiscal year. The certification shall include a | 16 | | copy of the actuarial
recommendations upon which it is based | 17 | | and shall specifically identify the System's projected State | 18 | | normal cost for that fiscal year. The Board's certification | 19 | | must note any deviations from the State Actuary's recommended | 20 | | changes, the reason or reasons for not following the State | 21 | | Actuary's recommended changes, and the fiscal impact of not | 22 | | following the State Actuary's recommended changes on the | 23 | | required State contribution. | 24 | | (a-10) For purposes of Section (c-5) of Section 20 of the | 25 | | Budget Stabilization Act, on or before November 1 of each year | 26 | | beginning November 1, 2014, the Board shall determine the |
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| 1 | | amount of the State contribution to the System that would have | 2 | | been required for the next fiscal year if this amendatory Act | 3 | | of the 98th General Assembly had not taken effect, using the | 4 | | best and most recent available data but based on the law in | 5 | | effect on May 31, 2014. The Board shall submit to the State | 6 | | Actuary, the Governor, and the General Assembly a proposed | 7 | | certification, along with the relevant law, actuarial | 8 | | assumptions, calculations, and data upon which that | 9 | | certification is based. On or before January 1, 2015 and every | 10 | | January 1 thereafter, the State Actuary shall issue a | 11 | | preliminary report concerning the proposed certification and | 12 | | identifying, if necessary, recommended changes in actuarial | 13 | | assumptions that the Board must consider before finalizing its | 14 | | certification. On or before January 15, 2015 and every January | 15 | | 1 thereafter, the Board shall certify to the Governor and the | 16 | | General Assembly the amount of the State contribution to the | 17 | | System that would have been required for the next fiscal year | 18 | | if this amendatory Act of the 98th General Assembly had not | 19 | | taken effect, using the best and most recent available data but | 20 | | based on the law in effect on May 31, 2014. The Board's | 21 | | certification must note any deviations from the State Actuary's | 22 | | recommended changes, the reason or reasons for not following | 23 | | the State Actuary's recommended changes, and the impact of not | 24 | | following the State Actuary's recommended changes. | 25 | | (b) Through State fiscal year 1995, the State contributions | 26 | | shall be
paid to the System in accordance with Section 18-7 of |
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| 1 | | the School Code.
| 2 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 3 | | of each month,
or as soon thereafter as may be practicable, the | 4 | | Board shall submit vouchers
for payment of State contributions | 5 | | to the System, in a total monthly amount of
one-twelfth of the | 6 | | required annual State contribution certified under
subsection | 7 | | (a-1).
From the
effective date of this amendatory Act of the | 8 | | 93rd General Assembly
through June 30, 2004, the Board shall | 9 | | not submit vouchers for the
remainder of fiscal year 2004 in | 10 | | excess of the fiscal year 2004
certified contribution amount | 11 | | determined under this Section
after taking into consideration | 12 | | the transfer to the System
under subsection (a) of Section | 13 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 14 | | the State Comptroller and
Treasurer by warrants drawn on the | 15 | | funds appropriated to the System for that
fiscal year.
| 16 | | If in any month the amount remaining unexpended from all | 17 | | other appropriations
to the System for the applicable fiscal | 18 | | year (including the appropriations to
the System under Section | 19 | | 8.12 of the State Finance Act and Section 1 of the
State | 20 | | Pension Funds Continuing Appropriation Act) is less than the | 21 | | amount
lawfully vouchered under this subsection, the | 22 | | difference shall be paid from the
Common School Fund under the | 23 | | continuing appropriation authority provided in
Section 1.1 of | 24 | | the State Pension Funds Continuing Appropriation Act.
| 25 | | (b-2) Allocations from the Common School Fund apportioned | 26 | | to school
districts not coming under this System shall not be |
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| 1 | | diminished or affected by
the provisions of this Article.
| 2 | | (b-3) For State fiscal years 2015 through 2044, the minimum | 3 | | contribution
to the System to be made by the State for each | 4 | | fiscal year shall be an amount
determined by the System to be | 5 | | equal to the sum of (1) the State's portion of the projected | 6 | | normal cost for that fiscal year, plus (2) an amount sufficient | 7 | | to bring the total assets of the
System up to 100% of the total | 8 | | actuarial liabilities of the System by the end of
State fiscal | 9 | | year 2044. In making these determinations, the required State
| 10 | | contribution shall be calculated each year as a level | 11 | | percentage of payroll
over the years remaining to and including | 12 | | fiscal year 2044 and shall be
determined under the projected | 13 | | unit cost method for fiscal year 2015 and under the entry age | 14 | | normal actuarial cost method for fiscal years 2016 through | 15 | | 2044. | 16 | | For State fiscal years 2012 through 2015 2014 , the minimum | 17 | | contribution
to the System to be made by the State for each | 18 | | fiscal year shall be an amount
determined by the System to be | 19 | | sufficient to bring the total assets of the
System up to 90% of | 20 | | the total actuarial liabilities of the System by the end of
| 21 | | State fiscal year 2045. In making these determinations, the | 22 | | required State
contribution shall be calculated each year as a | 23 | | level percentage of payroll
over the years remaining to and | 24 | | including fiscal year 2045 and shall be
determined under the | 25 | | projected unit credit actuarial cost method.
| 26 | | For State fiscal years 2016 through 2047, the minimum |
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| 1 | | contribution
to the System to be made by the State for each | 2 | | fiscal year shall be an amount
determined by the System to be | 3 | | sufficient to bring the total assets of the
System up to 100% | 4 | | of the total actuarial liabilities of the System by the end of
| 5 | | State fiscal year 2047. In making these determinations, the | 6 | | required State
contribution shall be calculated each year as a | 7 | | level dollar amount
over the years remaining to and including | 8 | | fiscal year 2047 and shall be
determined under the projected | 9 | | unit credit actuarial cost method. | 10 | | For State fiscal years 1996 through 2005, the State | 11 | | contribution to the
System, as a percentage of the applicable | 12 | | employee payroll, shall be increased
in equal annual increments | 13 | | so that by State fiscal year 2011, the State is
contributing at | 14 | | the rate required under this Section; except that in the
| 15 | | following specified State fiscal years, the State contribution | 16 | | to the System
shall not be less than the following indicated | 17 | | percentages of the applicable
employee payroll, even if the | 18 | | indicated percentage will produce a State
contribution in | 19 | | excess of the amount otherwise required under this subsection
| 20 | | and subsection (a), and notwithstanding any contrary | 21 | | certification made under
subsection (a-1) before the effective | 22 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 23 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 24 | | 2003; and
13.56% in FY 2004.
| 25 | | Notwithstanding any other provision of this Article, the | 26 | | total required State
contribution for State fiscal year 2006 is |
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| 1 | | $534,627,700.
| 2 | | Notwithstanding any other provision of this Article, the | 3 | | total required State
contribution for State fiscal year 2007 is | 4 | | $738,014,500.
| 5 | | For each of State fiscal years 2008 through 2009, the State | 6 | | contribution to
the System, as a percentage of the applicable | 7 | | employee payroll, shall be
increased in equal annual increments | 8 | | from the required State contribution for State fiscal year | 9 | | 2007, so that by State fiscal year 2011, the
State is | 10 | | contributing at the rate otherwise required under this Section.
| 11 | | Notwithstanding any other provision of this Article, the | 12 | | total required State contribution for State fiscal year 2010 is | 13 | | $2,089,268,000 and shall be made from the proceeds of bonds | 14 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 15 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 16 | | expenses determined by the System's share of total bond | 17 | | proceeds, (ii) any amounts received from the Common School Fund | 18 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 19 | | due to the issuance of discounted bonds, if applicable. | 20 | | Notwithstanding any other provision of this Article, the
| 21 | | total required State contribution for State fiscal year 2011 is
| 22 | | the amount recertified by the System on or before April 1, 2011 | 23 | | pursuant to subsection (a-1) of this Section and shall be made | 24 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | 25 | | Section 7.2 of the General
Obligation Bond Act, less (i) the | 26 | | pro rata share of bond sale
expenses determined by the System's |
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| 1 | | share of total bond
proceeds, (ii) any amounts received from | 2 | | the Common School Fund
in fiscal year 2011, and (iii) any | 3 | | reduction in bond proceeds
due to the issuance of discounted | 4 | | bonds, if applicable. This amount shall include, in addition to | 5 | | the amount certified by the System, an amount necessary to meet | 6 | | employer contributions required by the State as an employer | 7 | | under paragraph (e) of this Section, which may also be used by | 8 | | the System for contributions required by paragraph (a) of | 9 | | Section 16-127. | 10 | | Beginning in State fiscal year 2045, the minimum State | 11 | | contribution for each fiscal year shall be the amount needed to | 12 | | maintain the total assets of the System at 100% of the total | 13 | | actuarial liabilities of the System. | 14 | | Beginning in State fiscal year 2048, the minimum State | 15 | | contribution for
each fiscal year shall be the amount needed to | 16 | | maintain the total assets of
the System at 90% of the total | 17 | | actuarial liabilities of the System.
| 18 | | Amounts received by the System pursuant to Section 25 of | 19 | | the Budget Stabilization Act or Section 8.12 of the State | 20 | | Finance Act in any fiscal year do not reduce and do not | 21 | | constitute payment of any portion of the minimum State | 22 | | contribution required under this Article in that fiscal year. | 23 | | Such amounts shall not reduce, and shall not be included in the | 24 | | calculation of, the required State contributions under this | 25 | | Article in any future year until the System has reached a | 26 | | funding ratio of at least 100% 90% . A reference in this Article |
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| 1 | | to the "required State contribution" or any substantially | 2 | | similar term does not include or apply to any amounts payable | 3 | | to the System under Section 25 of the Budget Stabilization Act. | 4 | | Notwithstanding any other provision of this Section, the | 5 | | required State
contribution for State fiscal year 2005 and for | 6 | | fiscal year 2008 and each fiscal year thereafter through State | 7 | | fiscal year 2014 , as
calculated under this Section and
| 8 | | certified under subsection (a-1), shall not exceed an amount | 9 | | equal to (i) the
amount of the required State contribution that | 10 | | would have been calculated under
this Section for that fiscal | 11 | | year if the System had not received any payments
under | 12 | | subsection (d) of Section 7.2 of the General Obligation Bond | 13 | | Act, minus
(ii) the portion of the State's total debt service | 14 | | payments for that fiscal
year on the bonds issued in fiscal | 15 | | year 2003 for the purposes of that Section 7.2, as determined
| 16 | | and certified by the Comptroller, that is the same as the | 17 | | System's portion of
the total moneys distributed under | 18 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 19 | | Act. In determining this maximum for State fiscal years 2008 | 20 | | through 2010, however, the amount referred to in item (i) shall | 21 | | be increased, as a percentage of the applicable employee | 22 | | payroll, in equal increments calculated from the sum of the | 23 | | required State contribution for State fiscal year 2007 plus the | 24 | | applicable portion of the State's total debt service payments | 25 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 26 | | for the purposes of Section 7.2 of the General
Obligation Bond |
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| 1 | | Act, so that, by State fiscal year 2011, the
State is | 2 | | contributing at the rate otherwise required under this Section.
| 3 | | (c) Payment of the required State contributions and of all | 4 | | pensions,
retirement annuities, death benefits, refunds, and | 5 | | other benefits granted
under or assumed by this System, and all | 6 | | expenses in connection with the
administration and operation | 7 | | thereof, are obligations of the State.
| 8 | | If members are paid from special trust or federal funds | 9 | | which are
administered by the employing unit, whether school | 10 | | district or other
unit, the employing unit shall pay to the | 11 | | System from such
funds the full accruing retirement costs based | 12 | | upon that
service, as determined by the System. Employer | 13 | | contributions, based on
salary paid to members from federal | 14 | | funds, may be forwarded by the distributing
agency of the State | 15 | | of Illinois to the System prior to allocation, in an
amount | 16 | | determined in accordance with guidelines established by such
| 17 | | agency and the System.
| 18 | | (d) Effective July 1, 1986, any employer of a teacher as | 19 | | defined in
paragraph (8) of Section 16-106 shall pay the | 20 | | employer's normal cost
of benefits based upon the teacher's | 21 | | service, in addition to
employee contributions, as determined | 22 | | by the System. Such employer
contributions shall be forwarded | 23 | | monthly in accordance with guidelines
established by the | 24 | | System.
| 25 | | However, with respect to benefits granted under Section | 26 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
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| 1 | | of Section 16-106, the
employer's contribution shall be 12% | 2 | | (rather than 20%) of the member's
highest annual salary rate | 3 | | for each year of creditable service granted, and
the employer | 4 | | shall also pay the required employee contribution on behalf of
| 5 | | the teacher. For the purposes of Sections 16-133.4 and | 6 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 7 | | 16-106 who is serving in that capacity
while on leave of | 8 | | absence from another employer under this Article shall not
be | 9 | | considered an employee of the employer from which the teacher | 10 | | is on leave.
| 11 | | (e) Beginning July 1, 1998, every employer of a teacher
| 12 | | shall pay to the System an employer contribution computed as | 13 | | follows:
| 14 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 15 | | employer
contribution shall be equal to 0.3% of each | 16 | | teacher's salary.
| 17 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 18 | | contribution shall be equal to 0.58% of each teacher's | 19 | | salary.
| 20 | | The school district or other employing unit may pay these | 21 | | employer
contributions out of any source of funding available | 22 | | for that purpose and
shall forward the contributions to the | 23 | | System on the schedule established
for the payment of member | 24 | | contributions.
| 25 | | These employer contributions are intended to offset a | 26 | | portion of the cost
to the System of the increases in |
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| 1 | | retirement benefits resulting from this
amendatory Act of 1998.
| 2 | | Each employer of teachers is entitled to a credit against | 3 | | the contributions
required under this subsection (e) with | 4 | | respect to salaries paid to teachers
for the period January 1, | 5 | | 2002 through June 30, 2003, equal to the amount paid
by that | 6 | | employer under subsection (a-5) of Section 6.6 of the State | 7 | | Employees
Group Insurance Act of 1971 with respect to salaries | 8 | | paid to teachers for that
period.
| 9 | | The additional 1% employee contribution required under | 10 | | Section 16-152 by
this amendatory Act of 1998 is the | 11 | | responsibility of the teacher and not the
teacher's employer, | 12 | | unless the employer agrees, through collective bargaining
or | 13 | | otherwise, to make the contribution on behalf of the teacher.
| 14 | | If an employer is required by a contract in effect on May | 15 | | 1, 1998 between the
employer and an employee organization to | 16 | | pay, on behalf of all its full-time
employees
covered by this | 17 | | Article, all mandatory employee contributions required under
| 18 | | this Article, then the employer shall be excused from paying | 19 | | the employer
contribution required under this subsection (e) | 20 | | for the balance of the term
of that contract. The employer and | 21 | | the employee organization shall jointly
certify to the System | 22 | | the existence of the contractual requirement, in such
form as | 23 | | the System may prescribe. This exclusion shall cease upon the
| 24 | | termination, extension, or renewal of the contract at any time | 25 | | after May 1,
1998.
| 26 | | (f) If the amount of a teacher's salary for any school year |
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| 1 | | used to determine final average salary exceeds the member's | 2 | | annual full-time salary rate with the same employer for the | 3 | | previous school year by more than 6%, the teacher's employer | 4 | | shall pay to the System, in addition to all other payments | 5 | | required under this Section and in accordance with guidelines | 6 | | established by the System, the present value of the increase in | 7 | | benefits resulting from the portion of the increase in salary | 8 | | that is in excess of 6%. This present value shall be computed | 9 | | by the System on the basis of the actuarial assumptions and | 10 | | tables used in the most recent actuarial valuation of the | 11 | | System that is available at the time of the computation. If a | 12 | | teacher's salary for the 2005-2006 school year is used to | 13 | | determine final average salary under this subsection (f), then | 14 | | the changes made to this subsection (f) by Public Act 94-1057 | 15 | | shall apply in calculating whether the increase in his or her | 16 | | salary is in excess of 6%. For the purposes of this Section, | 17 | | change in employment under Section 10-21.12 of the School Code | 18 | | on or after June 1, 2005 shall constitute a change in employer. | 19 | | The System may require the employer to provide any pertinent | 20 | | information or documentation.
The changes made to this | 21 | | subsection (f) by this amendatory Act of the 94th General | 22 | | Assembly apply without regard to whether the teacher was in | 23 | | service on or after its effective date.
| 24 | | Whenever it determines that a payment is or may be required | 25 | | under this subsection, the System shall calculate the amount of | 26 | | the payment and bill the employer for that amount. The bill |
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| 1 | | shall specify the calculations used to determine the amount | 2 | | due. If the employer disputes the amount of the bill, it may, | 3 | | within 30 days after receipt of the bill, apply to the System | 4 | | in writing for a recalculation. The application must specify in | 5 | | detail the grounds of the dispute and, if the employer asserts | 6 | | that the calculation is subject to subsection (g) or (h) of | 7 | | this Section, must include an affidavit setting forth and | 8 | | attesting to all facts within the employer's knowledge that are | 9 | | pertinent to the applicability of that subsection. Upon | 10 | | receiving a timely application for recalculation, the System | 11 | | shall review the application and, if appropriate, recalculate | 12 | | the amount due.
| 13 | | The employer contributions required under this subsection | 14 | | (f) may be paid in the form of a lump sum within 90 days after | 15 | | receipt of the bill. If the employer contributions are not paid | 16 | | within 90 days after receipt of the bill, then interest will be | 17 | | charged at a rate equal to the System's annual actuarially | 18 | | assumed rate of return on investment compounded annually from | 19 | | the 91st day after receipt of the bill. Payments must be | 20 | | concluded within 3 years after the employer's receipt of the | 21 | | bill.
| 22 | | (g) This subsection (g) applies only to payments made or | 23 | | salary increases given on or after June 1, 2005 but before July | 24 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 25 | | require the System to refund any payments received before
July | 26 | | 31, 2006 (the effective date of Public Act 94-1057). |
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| 1 | | When assessing payment for any amount due under subsection | 2 | | (f), the System shall exclude salary increases paid to teachers | 3 | | under contracts or collective bargaining agreements entered | 4 | | into, amended, or renewed before June 1, 2005.
| 5 | | When assessing payment for any amount due under subsection | 6 | | (f), the System shall exclude salary increases paid to a | 7 | | teacher at a time when the teacher is 10 or more years from | 8 | | retirement eligibility under Section 16-132 or 16-133.2.
| 9 | | When assessing payment for any amount due under subsection | 10 | | (f), the System shall exclude salary increases resulting from | 11 | | overload work, including summer school, when the school | 12 | | district has certified to the System, and the System has | 13 | | approved the certification, that (i) the overload work is for | 14 | | the sole purpose of classroom instruction in excess of the | 15 | | standard number of classes for a full-time teacher in a school | 16 | | district during a school year and (ii) the salary increases are | 17 | | equal to or less than the rate of pay for classroom instruction | 18 | | computed on the teacher's current salary and work schedule.
| 19 | | When assessing payment for any amount due under subsection | 20 | | (f), the System shall exclude a salary increase resulting from | 21 | | a promotion (i) for which the employee is required to hold a | 22 | | certificate or supervisory endorsement issued by the State | 23 | | Teacher Certification Board that is a different certification | 24 | | or supervisory endorsement than is required for the teacher's | 25 | | previous position and (ii) to a position that has existed and | 26 | | been filled by a member for no less than one complete academic |
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| 1 | | year and the salary increase from the promotion is an increase | 2 | | that results in an amount no greater than the lesser of the | 3 | | average salary paid for other similar positions in the district | 4 | | requiring the same certification or the amount stipulated in | 5 | | the collective bargaining agreement for a similar position | 6 | | requiring the same certification.
| 7 | | When assessing payment for any amount due under subsection | 8 | | (f), the System shall exclude any payment to the teacher from | 9 | | the State of Illinois or the State Board of Education over | 10 | | which the employer does not have discretion, notwithstanding | 11 | | that the payment is included in the computation of final | 12 | | average salary.
| 13 | | (h) When assessing payment for any amount due under | 14 | | subsection (f), the System shall exclude any salary increase | 15 | | described in subsection (g) of this Section given on or after | 16 | | July 1, 2011 but before July 1, 2014 under a contract or | 17 | | collective bargaining agreement entered into, amended, or | 18 | | renewed on or after June 1, 2005 but before July 1, 2011. | 19 | | Notwithstanding any other provision of this Section, any | 20 | | payments made or salary increases given after June 30, 2014 | 21 | | shall be used in assessing payment for any amount due under | 22 | | subsection (f) of this Section.
| 23 | | (i) The System shall prepare a report and file copies of | 24 | | the report with the Governor and the General Assembly by | 25 | | January 1, 2007 that contains all of the following information: | 26 | | (1) The number of recalculations required by the |
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| 1 | | changes made to this Section by Public Act 94-1057 for each | 2 | | employer. | 3 | | (2) The dollar amount by which each employer's | 4 | | contribution to the System was changed due to | 5 | | recalculations required by Public Act 94-1057. | 6 | | (3) The total amount the System received from each | 7 | | employer as a result of the changes made to this Section by | 8 | | Public Act 94-4. | 9 | | (4) The increase in the required State contribution | 10 | | resulting from the changes made to this Section by Public | 11 | | Act 94-1057.
| 12 | | (j) For purposes of determining the required State | 13 | | contribution to the System, the value of the System's assets | 14 | | shall be equal to the actuarial value of the System's assets, | 15 | | which shall be calculated as follows: | 16 | | As of June 30, 2008, the actuarial value of the System's | 17 | | assets shall be equal to the market value of the assets as of | 18 | | that date. In determining the actuarial value of the System's | 19 | | assets for fiscal years after June 30, 2008, any actuarial | 20 | | gains or losses from investment return incurred in a fiscal | 21 | | year shall be recognized in equal annual amounts over the | 22 | | 5-year period following that fiscal year. | 23 | | (k) For purposes of determining the required State | 24 | | contribution to the system for a particular year, the actuarial | 25 | | value of assets shall be assumed to earn a rate of return equal | 26 | | to the system's actuarially assumed rate of return. |
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| 1 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 2 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | 3 | | 6-18-12; 97-813, eff. 7-13-12; 98-599, eff. 6-1-14.)
| 4 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 5 | | Sec. 18-131. Financing; employer contributions.
| 6 | | (a) The State of Illinois shall make contributions to this | 7 | | System by
appropriations of the amounts which, together with | 8 | | the contributions of
participants, net earnings on | 9 | | investments, and other income, will meet the
costs of | 10 | | maintaining and administering this System on a 90% funded basis | 11 | | in
accordance with actuarial recommendations.
| 12 | | (b) The Board shall determine the amount of State | 13 | | contributions
required for each fiscal year on the basis of the | 14 | | actuarial tables and other
assumptions adopted by the Board and | 15 | | the prescribed rate of interest, using
the formula in | 16 | | subsection (c).
| 17 | | (c) For State fiscal years 2012 through 2015 2045 , the | 18 | | minimum contribution
to the System to be made by the State for | 19 | | each fiscal year shall be an amount
determined by the System to | 20 | | be sufficient to bring the total assets of the
System up to 90% | 21 | | of the total actuarial liabilities of the System by the end of
| 22 | | State fiscal year 2045. In making these determinations, the | 23 | | required State
contribution shall be calculated each year as a | 24 | | level percentage of payroll
over the years remaining to and | 25 | | 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 2016 through 2047, the minimum | 3 | | contribution
to the System to be made by the State for each | 4 | | fiscal year shall be an amount
determined by the System to be | 5 | | sufficient to bring the total assets of the
System up to 100% | 6 | | of the total actuarial liabilities of the System by the end of
| 7 | | State fiscal year 2047. In making these determinations, the | 8 | | required State
contribution shall be calculated each year as a | 9 | | level dollar amount
over the years remaining to and including | 10 | | fiscal year 2047 and shall be
determined under the projected | 11 | | unit credit actuarial cost method. | 12 | | For State fiscal years 1996 through 2005, the State | 13 | | contribution to
the System, as a percentage of the applicable | 14 | | employee payroll, shall be
increased in equal annual increments | 15 | | so that by State fiscal year 2011, the
State is contributing at | 16 | | the rate required under this Section.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State
contribution for State fiscal year 2006 is | 19 | | $29,189,400.
| 20 | | Notwithstanding any other provision of this Article, the | 21 | | total required State
contribution for State fiscal year 2007 is | 22 | | $35,236,800.
| 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 | | $78,832,000 and shall be made from the proceeds of bonds sold | 6 | | 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 General Revenue | 10 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 11 | | proceeds due to the issuance of discounted bonds, if | 12 | | applicable. | 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State contribution for State fiscal year 2011 is
| 15 | | the amount recertified by the System on or before April 1, 2011 | 16 | | pursuant to Section 18-140 and shall be made from the proceeds | 17 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 18 | | the General
Obligation Bond Act, less (i) the pro rata share of | 19 | | bond sale
expenses determined by the System's share of total | 20 | | bond
proceeds, (ii) any amounts received from the General | 21 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 22 | | bond
proceeds due to the issuance of discounted bonds, if
| 23 | | applicable. | 24 | | Beginning in State fiscal year 2048 2046 , the minimum State | 25 | | contribution for
each fiscal year shall be the amount needed to | 26 | | maintain the total assets of
the System at 90% of the total |
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| 1 | | actuarial liabilities of the System.
| 2 | | Amounts received by the System pursuant to Section 25 of | 3 | | the Budget Stabilization Act or Section 8.12 of the State | 4 | | Finance Act in any fiscal year do not reduce and do not | 5 | | constitute payment of any portion of the minimum State | 6 | | contribution required under this Article in that fiscal year. | 7 | | Such amounts shall not reduce, and shall not be included in the | 8 | | calculation of, the required State contributions under this | 9 | | Article in any future year until the System has reached a | 10 | | funding ratio of at least 90%. A reference in this Article to | 11 | | the "required State contribution" or any substantially similar | 12 | | term does not include or apply to any amounts payable to the | 13 | | System under Section 25 of the Budget Stabilization Act.
| 14 | | Notwithstanding any other provision of this Section, the | 15 | | required State
contribution for State fiscal year 2005 and for | 16 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 17 | | under this Section and
certified under Section 18-140, shall | 18 | | not exceed an amount equal to (i) the
amount of the required | 19 | | State contribution that would have been calculated under
this | 20 | | Section for that fiscal year if the System had not received any | 21 | | payments
under subsection (d) of Section 7.2 of the General | 22 | | Obligation Bond Act, minus
(ii) the portion of the State's | 23 | | total debt service payments for that fiscal
year on the bonds | 24 | | issued in fiscal year 2003 for the purposes of that Section | 25 | | 7.2, as determined
and certified by the Comptroller, that is | 26 | | the same as the System's portion of
the total moneys |
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| 1 | | distributed under subsection (d) of Section 7.2 of the General
| 2 | | Obligation Bond Act. In determining this maximum for State | 3 | | fiscal years 2008 through 2010, however, the amount referred to | 4 | | in item (i) shall be increased, as a percentage of the | 5 | | applicable employee payroll, in equal increments calculated | 6 | | from the sum of the required State contribution for State | 7 | | fiscal year 2007 plus the applicable portion of the State's | 8 | | total debt service payments for fiscal year 2007 on the bonds | 9 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 10 | | the General
Obligation Bond Act, so that, by State fiscal year | 11 | | 2011, the
State is contributing at the rate otherwise required | 12 | | under this Section.
| 13 | | (d) For purposes of determining the required State | 14 | | contribution to the System, the value of the System's assets | 15 | | shall be equal to the actuarial value of the System's assets, | 16 | | which shall be calculated as follows: | 17 | | As of June 30, 2008, the actuarial value of the System's | 18 | | assets shall be equal to the market value of the assets as of | 19 | | that date. In determining the actuarial value of the System's | 20 | | assets for fiscal years after June 30, 2008, any actuarial | 21 | | gains or losses from investment return incurred in a fiscal | 22 | | year shall be recognized in equal annual amounts over the | 23 | | 5-year period following that fiscal year. | 24 | | (e) For purposes of determining the required State | 25 | | contribution to the system for a particular year, the actuarial | 26 | | value of assets shall be assumed to earn a rate of return equal |
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| 1 | | to the system's actuarially assumed rate of return. | 2 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 3 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 4 | | 7-13-12.)
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