Full Text of SB0788 95th General Assembly
SB0788eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The General Obligation Bond Act is amended by | 5 |
| changing Sections 2, 2.5, 7.2, 9 and 11 as follows:
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| (30 ILCS 330/2) (from Ch. 127, par. 652)
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| Sec. 2. Authorization for Bonds. The State of Illinois is | 8 |
| authorized to
issue, sell and provide for the retirement of | 9 |
| General Obligation Bonds of
the State of Illinois for the | 10 |
| categories and specific purposes expressed in
Sections 2 | 11 |
| through 8 of this Act, in the total amount of $43,658,149,369 | 12 |
| $27,658,149,369 .
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| The bonds authorized in this Section 2 and in Section 16 of | 14 |
| this Act are
herein called "Bonds".
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| Of the total amount of Bonds authorized in this Act, up to | 16 |
| $2,200,000,000
in aggregate original principal amount may be | 17 |
| issued and sold in accordance
with the Baccalaureate Savings | 18 |
| Act in the form of General Obligation
College Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, up to | 20 |
| $300,000,000 in
aggregate original principal amount may be | 21 |
| issued and sold in accordance
with the Retirement Savings Act | 22 |
| in the form of General Obligation
Retirement Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, the |
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| additional
$10,000,000,000 authorized by Public Act 93-2 and | 2 |
| the $16,000,000,000 authorized by this amendatory Act of the | 3 |
| 95th General Assembly this amendatory Act of the 93rd General
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| Assembly shall be issued and used solely as provided in Section | 5 |
| 7.2.
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| The issuance and sale of Bonds pursuant to the General | 7 |
| Obligation Bond
Act is an economical and efficient method of | 8 |
| financing the long-term capital needs of
the State. This Act | 9 |
| will permit the issuance of a multi-purpose General
Obligation | 10 |
| Bond with uniform terms and features. This will not only lower
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| the cost of registration but also reduce the overall cost of | 12 |
| issuing debt
by improving the marketability of Illinois General | 13 |
| Obligation Bonds.
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| (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; | 15 |
| 92-598, eff. 6-28-02; 93-2, eff. 4-7-03; 93-839, eff. 7-30-04.)
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| (30 ILCS 330/2.5) | 17 |
| Sec. 2.5. Limitation on issuance of Bonds. | 18 |
| (a) Except as provided in subsection (b), no Bonds may be | 19 |
| issued if, after the issuance, in the next State fiscal year | 20 |
| after the issuance of the Bonds, the amount of debt service | 21 |
| (including principal, whether payable at maturity or pursuant | 22 |
| to mandatory sinking fund installments, and interest) on all | 23 |
| then-outstanding Bonds , other than Bonds issued pursuant to | 24 |
| Section 7.2 of this Act, would exceed 7% of the aggregate | 25 |
| appropriations from the general funds (which consist of the |
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| General Revenue Fund, the Common School Fund, the General | 2 |
| Revenue Common School Special Account Fund, and the Education | 3 |
| Assistance Fund) and the Road Fund for the fiscal year | 4 |
| immediately prior to the fiscal year of the issuance. | 5 |
| (b) If the Comptroller and Treasurer each consent in | 6 |
| writing, Bonds may be issued even if the issuance does not | 7 |
| comply with subsection (a).
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| (Source: P.A. 93-839, eff. 7-30-04.)
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| (30 ILCS 330/7.2)
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| Sec. 7.2. State pension funding.
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| (a) The amount of $10,000,000,000 is authorized to be used | 12 |
| for the
purpose of making contributions to the designated | 13 |
| retirement systems.
For the purposes of this Section, | 14 |
| "designated retirement systems" means
the State Employees' | 15 |
| Retirement System of Illinois;
the Teachers' Retirement System | 16 |
| of the State of Illinois;
the State Universities Retirement | 17 |
| System;
the Judges Retirement System of Illinois; and
the | 18 |
| General Assembly Retirement System.
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| The amount of $16,000,000,000 of Bonds authorized by this | 20 |
| amendatory Act of the 95th General Assembly is authorized to be | 21 |
| used for the purpose of making contributions to the designated | 22 |
| retirement systems. | 23 |
| (b) The Pension Contribution Fund is created as a special | 24 |
| fund in the
State Treasury.
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| The proceeds of the additional $10,000,000,000 of Bonds |
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| authorized by this
amendatory Act of the 93rd General Assembly, | 2 |
| less the amounts authorized in the
Bond Sale Order to be | 3 |
| deposited directly into the capitalized interest account
of the | 4 |
| General Obligation Bond Retirement and Interest Fund or | 5 |
| otherwise
directly paid out for bond sale expenses under | 6 |
| Section 8, shall be deposited
into the Pension Contribution | 7 |
| Fund and used as provided in this Section.
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| The proceeds of the additional $16,000,000,000 of bonds | 9 |
| authorized by this amendatory Act of the 95th General Assembly, | 10 |
| less the amounts directly paid out for bond sale expenses under | 11 |
| Section 8, shall be deposited into the Pension Contribution | 12 |
| Fund and used as provided in this Section, provided that at the | 13 |
| request of the Illinois State Board of Investments or the | 14 |
| affected state pension system established under Article 15 or | 15 |
| 16 of the Illinois Pension Code, all or a portion of such | 16 |
| proceeds may be used by the Governor's Office of Management and | 17 |
| Budget to purchase an investment contract or other investment | 18 |
| assets, which shall be transferred to the affected pension | 19 |
| systems. The investment contract or other investment asset | 20 |
| shall be in an amount specified by the Illinois State Board of | 21 |
| Investments or state pension system, provide for a guaranteed | 22 |
| minimum interest rate, be with an issuer satisfactory to the | 23 |
| Illinois State Board of Investments or state pension system, | 24 |
| and have a credit rating of A3 or higher from Moody's Investor | 25 |
| Services or A- or higher from Standard & Poor's. | 26 |
| (c) Of the amount of Bond proceeds from the bond sale |
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| authorized by Public Act 93-2 first deposited into the Pension
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| Contribution Fund, there shall be reserved for transfers under | 3 |
| this subsection
the sum of $300,000,000, representing the | 4 |
| required State contributions to the
designated retirement | 5 |
| systems for the last quarter of State fiscal year 2003,
plus | 6 |
| the sum of $1,860,000,000, representing the required State | 7 |
| contributions
to the designated retirement systems for State | 8 |
| fiscal year 2004.
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| Upon the deposit of sufficient moneys from the bond sale | 10 |
| authorized by Public Act 93-2 into the Pension Contribution
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| Fund, the Comptroller and Treasurer shall immediately transfer | 12 |
| the sum of
$300,000,000 from the Pension Contribution Fund to | 13 |
| the General Revenue Fund.
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| Whenever any payment of required State contributions for | 15 |
| State fiscal year
2004 is made to one of the designated | 16 |
| retirement systems, the Comptroller and
Treasurer shall, as | 17 |
| soon as practicable, transfer from the Pension Contribution
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| Fund to the General Revenue Fund an amount equal to the amount | 19 |
| of that payment
to the designated retirement system.
Beginning | 20 |
| on the effective date of this amendatory Act of the 93rd
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| General Assembly, the transfers from the Pension Contribution | 22 |
| Fund to
the General Revenue Fund shall be suspended until June | 23 |
| 30, 2004, and
the remaining balance in the Pension Contribution | 24 |
| Fund shall be
transferred directly to the designated retirement | 25 |
| systems as provided
in Section 6z-61 of the State Finance Act. | 26 |
| On and after July 1, 2004, in the
event that
any amount is on |
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| deposit in the Pension Contribution Fund from time to
time, the | 2 |
| Comptroller and
Treasurer shall continue to make such transfers | 3 |
| based on fiscal year 2005
payments until the entire amount on | 4 |
| deposit has been
transferred.
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| (d) All amounts deposited into the Pension Contribution | 6 |
| Fund, other
than the amounts reserved for the transfers under | 7 |
| subsection (c), shall be
appropriated to the designated | 8 |
| retirement systems to reduce their actuarial
reserve | 9 |
| deficiencies. The amount of the appropriation to each | 10 |
| designated
retirement system shall constitute a portion of the | 11 |
| total appropriation under
this subsection that is the same as | 12 |
| that retirement system's portion of the
total actuarial reserve | 13 |
| deficiency of the systems, as most recently determined
by the
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| Governor's Office of Management and Budget under Section 8.12 | 15 |
| of the State Finance Act.
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| Within 15 days after any Bond proceeds in excess of the | 17 |
| amounts initially
reserved under subsection (c) from the bond | 18 |
| sale authorized by Public Act 93-2 are deposited into the | 19 |
| Pension Contribution
Fund, the
Governor's Office of Management | 20 |
| and Budget shall (i) allocate those proceeds among the
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| designated retirement systems in proportion to their | 22 |
| respective actuarial
reserve deficiencies, as most recently | 23 |
| determined under Section 8.12 of the
State Finance Act, and | 24 |
| (ii) certify those allocations to the designated
retirement | 25 |
| systems and the Comptroller.
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| Upon receiving certification of an allocation under this |
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| subsection, a
designated retirement system shall submit to the | 2 |
| Comptroller a voucher for
the amount of its allocation. The | 3 |
| voucher shall be paid out of the amount
appropriated to that | 4 |
| designated retirement system from the Pension Contribution
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| Fund pursuant to this subsection.
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| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)
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| (30 ILCS 330/9) (from Ch. 127, par. 659)
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| Sec. 9. Conditions for Issuance and Sale of Bonds - | 9 |
| Requirements for
Bonds. | 10 |
| (a) Except as otherwise provided in this subsection, Bonds | 11 |
| shall be issued and sold from time to time, in one or
more | 12 |
| series, in such amounts and at such prices as may be directed | 13 |
| by the
Governor, upon recommendation by the Director of the
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| Governor's Office of Management and Budget.
Bonds shall be in | 15 |
| such form (either coupon, registered or book entry), in
such | 16 |
| denominations, payable within 25 years from their date, subject | 17 |
| to such
terms of redemption with or without premium, bear | 18 |
| interest payable at
such times and at such fixed or variable | 19 |
| rate or rates, and be dated
as shall be fixed and determined by | 20 |
| the Director of
the
Governor's Office of Management and Budget
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| in the order authorizing the issuance and sale
of any series of | 22 |
| Bonds, which order shall be approved by the Governor
and is | 23 |
| herein called a "Bond Sale Order"; provided however, that | 24 |
| interest
payable at fixed or variable rates shall not exceed | 25 |
| that permitted in the
Bond Authorization Act, as now or |
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| hereafter amended , and provided further that Bonds authorized | 2 |
| by this amendatory Act of the 95th General Assembly, issued at | 3 |
| a fixed rate, shall bear interest at an interest rate or | 4 |
| interest rates not to exceed 5.95% . Bonds shall be
payable at | 5 |
| such place or places, within or without the State of Illinois, | 6 |
| and
may be made registrable as to either principal or as to | 7 |
| both principal and
interest, as shall be specified in the Bond | 8 |
| Sale Order. Bonds may be callable
or subject to purchase and | 9 |
| retirement or tender and remarketing as fixed
and determined in | 10 |
| the Bond Sale Order. Bonds must be issued with principal or | 11 |
| mandatory redemption amounts in equal amounts, with the first | 12 |
| maturity issued occurring within the fiscal year in which the | 13 |
| Bonds are issued or within the next succeeding fiscal year, | 14 |
| with Bonds issued maturing or subject to mandatory redemption | 15 |
| each fiscal year thereafter up to 25 years. Notwithstanding | 16 |
| anything in this Act to the contrary, the term of the Bonds | 17 |
| authorized by this amendatory Act of the 95th General Assembly | 18 |
| may not exceed 30 years from issuance, with payment of | 19 |
| principal beginning in the first State fiscal year following | 20 |
| the fiscal year of issuance and, to the extent so determined | 21 |
| and specified in the Bond Sale Order, including periodic | 22 |
| increases in principal payments, whether at maturity or upon | 23 |
| mandatory redemption thereafter, provided that such Bonds | 24 |
| maturing more than one year from the date of issuance shall not | 25 |
| be payable on a single date in a fixed amount.
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| In the case of any series of Bonds bearing interest at a |
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| variable interest
rate ("Variable Rate Bonds"), in lieu of | 2 |
| determining the rate or rates at which
such series of Variable | 3 |
| Rate Bonds shall bear interest and the price or prices
at which | 4 |
| such Variable Rate Bonds shall be initially sold or remarketed | 5 |
| (in the
event of purchase and subsequent resale), the Bond Sale | 6 |
| Order may provide that
such interest rates and prices may vary | 7 |
| from time to time depending on criteria
established in such | 8 |
| Bond Sale Order, which criteria may include, without
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| limitation, references to indices or variations in interest | 10 |
| rates as may, in
the judgment of a remarketing agent, be | 11 |
| necessary to cause Variable Rate Bonds
of such series to be | 12 |
| remarketable from time to time at a price equal to their
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| principal amount, and may provide for appointment of a bank, | 14 |
| trust company,
investment bank, or other financial institution | 15 |
| to serve as remarketing agent
in that connection.
The Bond Sale | 16 |
| Order may provide that alternative interest rates or provisions
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| for establishing alternative interest rates, different | 18 |
| security or claim
priorities, or different call or amortization | 19 |
| provisions will apply during
such times as Variable Rate Bonds | 20 |
| of any series are held by a person providing
credit or | 21 |
| liquidity enhancement arrangements for such Bonds as | 22 |
| authorized in
subsection (b) of this Section.
The Bond Sale | 23 |
| Order , other than for those bonds authorized pursuant to this | 24 |
| amendatory Act of the 95th General Assembly, may also provide | 25 |
| for such variable interest rates to be
established pursuant to | 26 |
| a process generally known as an auction rate process
and may |
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| provide for appointment of one or more financial institutions | 2 |
| to serve
as auction agents and broker-dealers in connection | 3 |
| with the establishment of
such interest rates and the sale and | 4 |
| remarketing of such Bonds.
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| (b) In connection with the issuance of any series of Bonds, | 6 |
| the State may
enter into arrangements to provide additional | 7 |
| security and liquidity for such
Bonds, including, without | 8 |
| limitation, bond or interest rate insurance or
letters of | 9 |
| credit, lines of credit, bond purchase contracts, or other
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| arrangements whereby funds are made available to retire or | 11 |
| purchase Bonds,
thereby assuring the ability of owners of the | 12 |
| Bonds to sell or redeem their
Bonds. The State may enter into | 13 |
| contracts and may agree to pay fees to persons
providing such | 14 |
| arrangements, but only under circumstances where the Director | 15 |
| of
the
Governor's Office of Management and Budget certifies | 16 |
| that he or she reasonably expects the total
interest paid or to | 17 |
| be paid on the Bonds, together with the fees for the
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| arrangements (being treated as if interest), would not, taken | 19 |
| together, cause
the Bonds to bear interest, calculated to their | 20 |
| stated maturity, at a rate in
excess of the rate that the Bonds | 21 |
| would bear in the absence of such
arrangements.
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| The State may, with respect to Bonds issued or anticipated | 23 |
| to be issued,
participate in and enter into arrangements with | 24 |
| respect to interest rate
protection or exchange agreements, | 25 |
| guarantees, or financial futures contracts
for the purpose of | 26 |
| limiting, reducing, or managing interest rate exposure.
The |
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| authority granted under this paragraph, however, shall not | 2 |
| increase the principal amount of Bonds authorized to be issued | 3 |
| by law. The arrangements may be executed and delivered by the | 4 |
| Director
of the
Governor's Office of Management and Budget on | 5 |
| behalf of the State. Net payments for such
arrangements shall | 6 |
| constitute interest on the Bonds and shall be paid from the
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| General Obligation Bond Retirement and Interest Fund. The | 8 |
| Director of the
Governor's Office of Management and Budget | 9 |
| shall at least annually certify to the Governor and
the
State | 10 |
| Comptroller his or her estimate of the amounts of such net | 11 |
| payments to
be included in the calculation of interest required | 12 |
| to be paid by the State.
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| (c) Prior to the issuance of any Variable Rate Bonds | 14 |
| pursuant to
subsection (a), the Director of the
Governor's | 15 |
| Office of Management and Budget shall adopt an
interest rate | 16 |
| risk management policy providing that the amount of the State's
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| variable rate exposure with respect to Bonds shall not exceed | 18 |
| 20%. This policy
shall remain in effect while any Bonds are | 19 |
| outstanding and the issuance of
Bonds
shall be subject to the | 20 |
| terms of such policy. The terms of this policy may be
amended | 21 |
| from time to time by the Director of the
Governor's Office of | 22 |
| Management and Budget but in no
event shall any amendment cause | 23 |
| the permitted level of the State's variable
rate exposure with | 24 |
| respect to Bonds to exceed 20%.
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| (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666, | 26 |
| eff. 3-5-04; 93-839, eff. 7-30-04.)
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| (30 ILCS 330/11) (from Ch. 127, par. 661)
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| Sec. 11. Sale of Bonds. Except as otherwise provided in | 3 |
| this Section,
Bonds shall be sold from time to time pursuant to
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| notice of sale and public bid or by negotiated sale
in such | 5 |
| amounts and at such
times as is directed by the Governor, upon | 6 |
| recommendation by the Director of
the
Governor's Office of | 7 |
| Management and Budget. At least 25%, based on total principal | 8 |
| amount, of all Bonds issued each fiscal year shall be sold | 9 |
| pursuant to notice of sale and public bid. At all times during | 10 |
| each fiscal year, no more than 75%, based on total principal | 11 |
| amount, of the Bonds issued each fiscal year, shall have been | 12 |
| sold by negotiated sale. Failure to satisfy the requirements in | 13 |
| the preceding 2 sentences shall not affect the validity of any | 14 |
| previously issued Bonds. All Bonds issued pursuant to the | 15 |
| authorization contained in this amendatory Act of the 95th | 16 |
| General Assembly may be sold by negotiated sale. The principal | 17 |
| amount of Bonds issued pursuant to the authorization contained | 18 |
| in this amendatory Act of the 95th General Assembly shall not | 19 |
| be included in determining compliance for any fiscal year with | 20 |
| the requirements of the second and third sentences of this | 21 |
| paragraph.
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| If
any Bonds, including refunding Bonds, are to be sold by | 23 |
| negotiated
sale, the
Director of the
Governor's Office of | 24 |
| Management and Budget
shall comply with the
competitive request | 25 |
| for proposal process set forth in the Illinois
Procurement Code |
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| and all other applicable requirements of that Code.
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| If Bonds are to be sold pursuant to notice of sale and | 3 |
| public bid, the
Director of the
Governor's Office of Management | 4 |
| and Budget shall, from time to time, as Bonds are to be sold, | 5 |
| advertise
the sale of the Bonds in at least 2 daily newspapers, | 6 |
| one of which is
published in the City of Springfield and one in | 7 |
| the City of Chicago. The sale
of the Bonds shall also be
| 8 |
| advertised in the volume of the Illinois Procurement Bulletin | 9 |
| that is
published by the Department of Central Management | 10 |
| Services. Each of
the advertisements for
proposals shall be | 11 |
| published once at least
10 days prior to the date fixed
for the | 12 |
| opening of the bids. The Director of the
Governor's Office of | 13 |
| Management and Budget may
reschedule the date of sale upon the | 14 |
| giving of such additional notice as the
Director deems adequate | 15 |
| to inform prospective bidders of
such change; provided, | 16 |
| however, that all other conditions of the sale shall
continue | 17 |
| as originally advertised.
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| Executed Bonds shall, upon payment therefor, be delivered | 19 |
| to the purchaser,
and the proceeds of Bonds shall be paid into | 20 |
| the State Treasury as directed by
Section 12 of this Act.
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| (Source: P.A. 93-839, eff. 7-30-04.)
| 22 |
| Section 10. The Illinois Pension Code is amended by | 23 |
| changing Sections 2-124, 2-134, 14-131, 14-135.08, 15-155, | 24 |
| 15-156, 15-157, 15-165, 16-158, 18-131, and 18-140 as follows:
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| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| Sec. 2-124. Contributions by State.
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| (a) The State shall make contributions to the System by
| 4 |
| appropriations of amounts which, together with the | 5 |
| contributions of
participants, interest earned on investments, | 6 |
| and other income
will meet the cost of maintaining and | 7 |
| administering the System on a 90%
funded basis in accordance | 8 |
| with actuarial recommendations.
| 9 |
| (b) The Board shall determine the amount of State
| 10 |
| contributions required for each fiscal year on the basis of the
| 11 |
| actuarial tables and other assumptions adopted by the Board and | 12 |
| the
prescribed rate of interest, using the formula in | 13 |
| subsection (c).
| 14 |
| (c) Except as otherwise provided in this Section,
the For | 15 |
| State fiscal years 2011 through 2045, the minimum contribution
| 16 |
| to the System to be made by the State for each fiscal year | 17 |
| shall be an amount
determined by the System to be sufficient to | 18 |
| bring the total assets of the
System up to 90% of the total | 19 |
| actuarial liabilities of the System by the end of
State fiscal | 20 |
| year 2034, as 2045. In making these determinations, the | 21 |
| required State
contribution shall be calculated each year as a | 22 |
| level percentage of payroll
over the years remaining to and | 23 |
| including fiscal year 2045 and shall be
determined under the | 24 |
| projected unit credit actuarial cost method.
| 25 |
| For State fiscal years 1996 through 2005, the State | 26 |
| contribution to
the System, as a percentage of the applicable |
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| employee payroll, shall be
increased in equal annual increments | 2 |
| so that by State fiscal year 2011, the
State is contributing at | 3 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 5 |
| total required State
contribution for State fiscal year 2006 is | 6 |
| $4,157,000.
| 7 |
| Notwithstanding any other provision of this Article, the | 8 |
| total required State
contribution for State fiscal year 2007 is | 9 |
| $5,220,300.
| 10 |
| Notwithstanding any other provision of this Article, the | 11 |
| total required State contribution for State fiscal year 2009 is | 12 |
| $7,653,000, less that percentage of estimated fiscal year 2009 | 13 |
| debt service payable on bonds authorized by this amendatory Act | 14 |
| of the 95th General Assembly that is attributable to the | 15 |
| percentage of bond proceeds received by the System. | 16 |
| For each of State fiscal years 2010 2008 through 2038 2010 , | 17 |
| the State contribution to
the System , as a percentage of the | 18 |
| applicable employee payroll, shall be
increased in an equal | 19 |
| annual amount equal to the increase from the required State | 20 |
| contribution from the preceding fiscal year, and this increase | 21 |
| shall be increased by 3% each year increments from the required | 22 |
| State contribution for State fiscal year 2007 , so that by State | 23 |
| fiscal year 2038 2011 , the
State is contributing at the rate | 24 |
| otherwise required under this Section.
If in any year this | 25 |
| specified payment, when actuarially projected forward, should | 26 |
| not be sufficient to achieve 90% funding by 2038, then that |
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| year's contribution shall be the amount necessary when taken as | 2 |
| a level dollar increase, increased by 3% each year, to achieve | 3 |
| 90% funding by 2038. | 4 |
| Beginning in State fiscal year 2039 or the fiscal year | 5 |
| following that fiscal year during which 90% funding is | 6 |
| achieved, the minimum State contribution for each fiscal year | 7 |
| shall be the amount determined by the System to be sufficient | 8 |
| to accumulate total System assets equal to 90% of the total | 9 |
| actuarial liabilities of the System over 30 years. In making | 10 |
| these determinations, the required State contribution shall be | 11 |
| calculated each year as a level percentage of employee payroll | 12 |
| over 30 years and shall be determined under the project unit | 13 |
| credit actuarial cost method. 2046, the minimum State | 14 |
| contribution for
each fiscal year shall be the amount needed to | 15 |
| maintain the total assets of
the System at 90% of the total | 16 |
| actuarial liabilities of the System.
| 17 |
| Amounts received by the System pursuant to Section 25 of | 18 |
| the Budget Stabilization Act in any fiscal year do not reduce | 19 |
| and do not constitute payment of any portion of the minimum | 20 |
| State contribution required under this Article in that fiscal | 21 |
| year. Such amounts shall not reduce, and shall not be included | 22 |
| in the calculation of, the required State contributions under | 23 |
| this Article in any future year until the System has reached a | 24 |
| funding ratio of at least 90%. A reference in this Article to | 25 |
| the "required State contribution" or any substantially similar | 26 |
| term does not include or apply to any amounts payable to the |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| System under Section 25 of the Budget Stabilization Act.
| 2 |
| Notwithstanding any other provision of this Section, the | 3 |
| required State
contribution for State fiscal year 2005 and for | 4 |
| fiscal year 2008 and for fiscal year 2010 and each fiscal year | 5 |
| thereafter, as
calculated under this Section and
certified | 6 |
| under Section 2-134, shall not exceed an amount equal to (i) | 7 |
| the
amount of the required State contribution that would have | 8 |
| been calculated under
this Section for that fiscal year if the | 9 |
| System had not received any payments
under subsection (d) of | 10 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 11 |
| portion of the State's total debt service payments for that | 12 |
| fiscal
year on the bonds issued for the purposes of that | 13 |
| Section 7.2, as determined
and certified by the Comptroller, | 14 |
| that is the same as the System's portion of
the total moneys | 15 |
| distributed under subsection (d) of Section 7.2 of the General
| 16 |
| Obligation Bond Act. | 17 |
| (d) Notwithstanding this Code or any other law to the | 18 |
| contrary, the Board must ensure that at least 19% of the | 19 |
| proceeds from the issuance of general obligation bonds under | 20 |
| the General Obligation Bond Act authorized by this amendatory | 21 |
| Act of the 95th General Assembly are invested through qualified | 22 |
| investment advisers who are a "minority owned business" or a | 23 |
| "female owned business" as those terms are defined in the | 24 |
| Business Enterprise for Minorities, Females, and Persons with | 25 |
| Disabilities Act. In determining this maximum for State fiscal | 26 |
| years 2008 through 2010, however, the amount referred to in |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| item (i) shall be increased, as a percentage of the applicable | 2 |
| employee payroll, in equal increments calculated from the sum | 3 |
| of the required State contribution for State fiscal year 2007 | 4 |
| plus the applicable portion of the State's total debt service | 5 |
| payments for fiscal year 2007 on the bonds issued for the | 6 |
| purposes of Section 7.2 of the General
Obligation Bond Act, so | 7 |
| that, by State fiscal year 2011, the
State is contributing at | 8 |
| the rate otherwise required under this Section.
| 9 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 10 |
| eff. 6-6-06.)
| 11 |
| (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 12 |
| Sec. 2-134. To certify required State contributions and | 13 |
| submit vouchers.
| 14 |
| (a) The Board shall certify to the Governor on or before | 15 |
| December 15 of each
year the amount of the required State | 16 |
| contribution to the System for the next
fiscal year. The | 17 |
| certification shall include a copy of the actuarial
| 18 |
| recommendations upon which it is based.
| 19 |
| On or before May 1, 2004, the Board shall recalculate and | 20 |
| recertify to
the Governor the amount of the required State | 21 |
| contribution to the System for
State fiscal year 2005, taking | 22 |
| into account the amounts appropriated to and
received by the | 23 |
| System under subsection (d) of Section 7.2 of the General
| 24 |
| Obligation Bond Act.
| 25 |
| On or before July 1, 2005, the Board shall recalculate and |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| recertify
to the Governor the amount of the required State
| 2 |
| contribution to the System for State fiscal year 2006, taking | 3 |
| into account the changes in required State contributions made | 4 |
| by this amendatory Act of the 94th General Assembly.
| 5 |
| On or before July 1, 2008, the board shall recalculate and | 6 |
| recertify to the Governor the amount of the required State | 7 |
| contribution to the System for State fiscal year 2009, taking | 8 |
| into account the changes in required contributions made by this | 9 |
| amendatory Act of the 95th General Assembly. | 10 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 11 |
| possible after the
15th day of each month the Board shall | 12 |
| submit vouchers for payment of State
contributions to the | 13 |
| System, in a total monthly amount of one-twelfth of the
| 14 |
| required annual State contribution certified under subsection | 15 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 16 |
| General Assembly through June 30, 2004, the Board shall not
| 17 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 18 |
| of the
fiscal year 2004 certified contribution amount | 19 |
| determined
under this Section after taking into consideration | 20 |
| the transfer to the
System under subsection (d) of Section | 21 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 22 |
| the State Comptroller and Treasurer by warrants drawn
on the | 23 |
| funds appropriated to the System for that fiscal year. If in | 24 |
| any month
the amount remaining unexpended from all other | 25 |
| appropriations to the System for
the applicable fiscal year | 26 |
| (including the appropriations to the System under
Section 8.12 |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| of the State Finance Act and Section 1 of the State Pension | 2 |
| Funds
Continuing Appropriation Act) is less than the amount | 3 |
| lawfully vouchered under
this Section, the difference shall be | 4 |
| paid from the General Revenue Fund under
the continuing | 5 |
| appropriation authority provided in Section 1.1 of the State
| 6 |
| Pension Funds Continuing Appropriation Act.
| 7 |
| (c) The full amount of any annual appropriation for the | 8 |
| System for
State fiscal year 1995 shall be transferred and made | 9 |
| available to the System
at the beginning of that fiscal year at | 10 |
| the request of the Board.
Any excess funds remaining at the end | 11 |
| of any fiscal year from appropriations
shall be retained by the | 12 |
| System as a general reserve to meet the System's
accrued | 13 |
| liabilities.
| 14 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-536, eff. 8-10-05; 95-331, | 15 |
| eff. 8-21-07.)
| 16 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 17 |
| Sec. 14-131. Contributions by State.
| 18 |
| (a) The State shall make contributions to the System by | 19 |
| appropriations of
amounts which, together with other employer | 20 |
| contributions from trust, federal,
and other funds, employee | 21 |
| contributions, investment income, and other income,
will be | 22 |
| sufficient to meet the cost of maintaining and administering | 23 |
| the System
on a 90% funded basis in accordance with actuarial | 24 |
| recommendations.
| 25 |
| For the purposes of this Section and Section 14-135.08, |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| references to State
contributions refer only to employer | 2 |
| contributions and do not include employee
contributions that | 3 |
| are picked up or otherwise paid by the State or a
department on | 4 |
| behalf of the employee.
| 5 |
| (b) The Board shall determine the total amount of State | 6 |
| contributions
required for each fiscal year on the basis of the | 7 |
| actuarial tables and other
assumptions adopted by the Board, | 8 |
| using the formula in subsection (e).
| 9 |
| The Board shall also determine a State contribution rate | 10 |
| for each fiscal
year, expressed as a percentage of payroll, | 11 |
| based on the total required State
contribution for that fiscal | 12 |
| year (less the amount received by the System from
| 13 |
| appropriations under Section 8.12 of the State Finance Act and | 14 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 15 |
| Act, if any, for the fiscal year
ending on the June 30 | 16 |
| immediately preceding the applicable November 15
certification | 17 |
| deadline), the estimated payroll (including all forms of
| 18 |
| compensation) for personal services rendered by eligible | 19 |
| employees, and the
recommendations of the actuary.
| 20 |
| For the purposes of this Section and Section 14.1 of the | 21 |
| State Finance Act,
the term "eligible employees" includes | 22 |
| employees who participate in the System,
persons who may elect | 23 |
| to participate in the System but have not so elected,
persons | 24 |
| who are serving a qualifying period that is required for | 25 |
| participation,
and annuitants employed by a department as | 26 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| (c) Contributions shall be made by the several departments | 2 |
| for each pay
period by warrants drawn by the State Comptroller | 3 |
| against their respective
funds or appropriations based upon | 4 |
| vouchers stating the amount to be so
contributed. These amounts | 5 |
| shall be based on the full rate certified by the
Board under | 6 |
| Section 14-135.08 for that fiscal year.
From the effective date | 7 |
| of this amendatory Act of the 93rd General
Assembly through the | 8 |
| payment of the final payroll from fiscal year 2004
| 9 |
| appropriations, the several departments shall not make | 10 |
| contributions
for the remainder of fiscal year 2004 but shall | 11 |
| instead make payments
as required under subsection (a-1) of | 12 |
| Section 14.1 of the State Finance Act.
The several departments | 13 |
| shall resume those contributions at the commencement of
fiscal | 14 |
| year 2005.
| 15 |
| (d) If an employee is paid from trust funds or federal | 16 |
| funds, the
department or other employer shall pay employer | 17 |
| contributions from those funds
to the System at the certified | 18 |
| rate, unless the terms of the trust or the
federal-State | 19 |
| agreement preclude the use of the funds for that purpose, in
| 20 |
| which case the required employer contributions shall be paid by | 21 |
| the State.
From the effective date of this amendatory
Act of | 22 |
| the 93rd General Assembly through the payment of the final
| 23 |
| payroll from fiscal year 2004 appropriations, the department or | 24 |
| other
employer shall not pay contributions for the remainder of | 25 |
| fiscal year
2004 but shall instead make payments as required | 26 |
| under subsection (a-1) of
Section 14.1 of the State Finance |
|
|
|
SB0788 Engrossed |
- 23 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| Act. The department or other employer shall
resume payment of
| 2 |
| contributions at the commencement of fiscal year 2005.
| 3 |
| (e) Except as otherwise provided in this Section, the For | 4 |
| State fiscal years 2011 through 2045, the minimum contribution
| 5 |
| to the System to be made by the State for each fiscal year | 6 |
| shall be an amount
determined by the System to be sufficient to | 7 |
| bring the total assets of the
System up to 90% of the total | 8 |
| actuarial liabilities of the System by the end
of State fiscal | 9 |
| year 2034, as 2045. In making these determinations, the | 10 |
| required State
contribution shall be calculated each year as a | 11 |
| level percentage of payroll
over the years remaining to and | 12 |
| including fiscal year 2045 and shall be
determined under the | 13 |
| projected unit credit actuarial cost method.
| 14 |
| For State fiscal years 1996 through 2005, the State | 15 |
| contribution to
the System, as a percentage of the applicable | 16 |
| employee payroll, shall be
increased in equal annual increments | 17 |
| so that by State fiscal year 2011, the
State is contributing at | 18 |
| the rate required under this Section; except that
(i) for State | 19 |
| fiscal year 1998, for all purposes of this Code and any other
| 20 |
| law of this State, the certified percentage of the applicable | 21 |
| employee payroll
shall be 5.052% for employees earning eligible | 22 |
| creditable service under Section
14-110 and 6.500% for all | 23 |
| other employees, notwithstanding any contrary
certification | 24 |
| made under Section 14-135.08 before the effective date of this
| 25 |
| amendatory Act of 1997, and (ii)
in the following specified | 26 |
| State fiscal years, the State contribution to
the System shall |
|
|
|
SB0788 Engrossed |
- 24 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| not be less than the following indicated percentages of the
| 2 |
| applicable employee payroll, even if the indicated percentage | 3 |
| will produce a
State contribution in excess of the amount | 4 |
| otherwise required under this
subsection and subsection (a):
| 5 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 6 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 7 |
| Notwithstanding any other provision of this Article, the | 8 |
| total required State
contribution to the System for State | 9 |
| fiscal year 2006 is $203,783,900.
| 10 |
| Notwithstanding any other provision of this Article, the | 11 |
| total required State
contribution to the System for State | 12 |
| fiscal year 2007 is $344,164,400.
| 13 |
| Notwithstanding any other provision of this Article, the | 14 |
| total required State contribution to the System for State | 15 |
| fiscal year 2009 is $623,406,000, less that percentage of | 16 |
| estimated fiscal year 2009 debt service payable on bonds | 17 |
| authorized by this amendatory Act of the 95th General Assembly | 18 |
| that is attributable to the percentage of bond proceeds | 19 |
| received by the System. | 20 |
| For each of State fiscal years 2010 2008 through 2038 2010 , | 21 |
| the State contribution to
the System , as a percentage of the | 22 |
| applicable employee payroll, shall be
increased in an equal | 23 |
| annual amount equal to the increase from the required State | 24 |
| contribution from the preceding fiscal year, and this increase | 25 |
| shall be increased by 3% each year increments from the required | 26 |
| State contribution for State fiscal year 2007 , so that by State |
|
|
|
SB0788 Engrossed |
- 25 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| fiscal year 2038 2011 , the
State is contributing at the rate | 2 |
| otherwise required under this Section.
If in any year this | 3 |
| specified payment, when actuarially projected forward, should | 4 |
| not be sufficient to achieve 90% funding by 2038, then that | 5 |
| year's contribution shall be the amount necessary when taken as | 6 |
| a level dollar increase, increased by 3% each year, to achieve | 7 |
| 90% funding by 2038. | 8 |
| Beginning in State fiscal year 2039 or the fiscal year | 9 |
| following that fiscal year during which 90% funding is | 10 |
| achieved, the minimum State contribution for each fiscal year | 11 |
| shall be the amount determined by the System to be sufficient | 12 |
| to accumulate total System assets equal to 90% of the total | 13 |
| actuarial liabilities of the System over 30 years. In making | 14 |
| these determinations, the required State contribution shall be | 15 |
| calculated each year as a level percentage of employee payroll | 16 |
| over 30 years and shall be determined under the project unit | 17 |
| credit actuarial cost method. 2046, the minimum State | 18 |
| contribution for
each fiscal year shall be the amount needed to | 19 |
| maintain the total assets of
the System at 90% of the total | 20 |
| actuarial liabilities of the System.
| 21 |
| Amounts received by the System pursuant to Section 25 of | 22 |
| the Budget Stabilization Act in any fiscal year do not reduce | 23 |
| and do not constitute payment of any portion of the minimum | 24 |
| State contribution required under this Article in that fiscal | 25 |
| year. Such amounts shall not reduce, and shall not be included | 26 |
| in the calculation of, the required State contributions under |
|
|
|
SB0788 Engrossed |
- 26 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| this Article in any future year until the System has reached a | 2 |
| funding ratio of at least 90%. A reference in this Article to | 3 |
| the "required State contribution" or any substantially similar | 4 |
| term does not include or apply to any amounts payable to the | 5 |
| System under Section 25 of the Budget Stabilization Act.
| 6 |
| Notwithstanding any other provision of this Section, the | 7 |
| required State
contribution for State fiscal year 2005 and for | 8 |
| fiscal year 2008 and for fiscal year 2010 and each fiscal year | 9 |
| thereafter, as
calculated under this Section and
certified | 10 |
| under Section 14-135.08, shall not exceed an amount equal to | 11 |
| (i) the
amount of the required State contribution that would | 12 |
| have been calculated under
this Section for that fiscal year if | 13 |
| the System had not received any payments
under subsection (d) | 14 |
| of Section 7.2 of the General Obligation Bond Act, minus
(ii) | 15 |
| the portion of the State's total debt service payments for that | 16 |
| fiscal
year on the bonds issued for the purposes of that | 17 |
| Section 7.2, as determined
and certified by the Comptroller, | 18 |
| that is the same as the System's portion of
the total moneys | 19 |
| distributed under subsection (d) of Section 7.2 of the General
| 20 |
| Obligation Bond Act. In determining this maximum for State | 21 |
| fiscal years 2008 through 2010, however, the amount referred to | 22 |
| in item (i) shall be increased, as a percentage of the | 23 |
| applicable employee payroll, in equal increments calculated | 24 |
| from the sum of the required State contribution for State | 25 |
| fiscal year 2007 plus the applicable portion of the State's | 26 |
| total debt service payments for fiscal year 2007 on the bonds |
|
|
|
SB0788 Engrossed |
- 27 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| issued for the purposes of Section 7.2 of the General
| 2 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
| 3 |
| State is contributing at the rate otherwise required under this | 4 |
| Section.
| 5 |
| (f) After the submission of all payments for eligible | 6 |
| employees
from personal services line items in fiscal year 2004 | 7 |
| have been made,
the Comptroller shall provide to the System a | 8 |
| certification of the sum
of all fiscal year 2004 expenditures | 9 |
| for personal services that would
have been covered by payments | 10 |
| to the System under this Section if the
provisions of this | 11 |
| amendatory Act of the 93rd General Assembly had not been
| 12 |
| enacted. Upon
receipt of the certification, the System shall | 13 |
| determine the amount
due to the System based on the full rate | 14 |
| certified by the Board under
Section 14-135.08 for fiscal year | 15 |
| 2004 in order to meet the State's
obligation under this | 16 |
| Section. The System shall compare this amount
due to the amount | 17 |
| received by the System in fiscal year 2004 through
payments | 18 |
| under this Section and under Section 6z-61 of the State Finance | 19 |
| Act.
If the amount
due is more than the amount received, the | 20 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 21 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 22 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 23 |
| Continuing Appropriation Act. If the amount due is less than | 24 |
| the
amount received, the
difference shall be termed the "Fiscal | 25 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 26 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| the Pension Contribution Fund as soon as practicable
after the | 2 |
| certification.
| 3 |
| (g) Notwithstanding this Code or any other law to the | 4 |
| contrary, the Board must ensure that at least 19% of the | 5 |
| proceeds from the issuance of general obligation bonds under | 6 |
| the General Obligation Bond Act authorized by this amendatory | 7 |
| Act of the 95th General Assembly are invested through qualified | 8 |
| investment advisers who are a "minority owned business" or a | 9 |
| "female owned business" as those terms are defined in the | 10 |
| Business Enterprise for Minorities, Females, and Persons with | 11 |
| Disabilities Act. | 12 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 13 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
| 14 |
| (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 15 |
| Sec. 14-135.08. To certify required State contributions. | 16 |
| (a)
To certify to the Governor and to each department, on | 17 |
| or before
November 15 of each year, the required rate for State | 18 |
| contributions to the
System for the next State fiscal year, as | 19 |
| determined under subsection (b) of
Section 14-131. The | 20 |
| certification to the Governor shall include a copy of the
| 21 |
| actuarial recommendations upon which the rate is based.
| 22 |
| (b) The certification shall include an additional amount | 23 |
| necessary to pay all principal of and interest on those general | 24 |
| obligation bonds due the next fiscal year authorized by Section | 25 |
| 7.2(a) of the General Obligation Bond Act and issued to provide |
|
|
|
SB0788 Engrossed |
- 29 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| the proceeds deposited by the State with the System in July | 2 |
| 2003 , representing deposits other than amounts reserved under | 3 |
| Section 7.2(c) of the General Obligation Bond Act from the bond | 4 |
| sale authorized by Public Act 93-2 . For State fiscal year 2005, | 5 |
| the Board shall make a supplemental certification of the | 6 |
| additional amount necessary to pay all principal of and | 7 |
| interest on those general obligation bonds due in State fiscal | 8 |
| years 2004 and 2005 authorized by Section 7.2(a) of the General | 9 |
| Obligation Bond Act and issued to provide the proceeds | 10 |
| deposited by the State with the System in July 2003, | 11 |
| representing deposits other than amounts reserved under | 12 |
| Section 7.2(c) of the General Obligation Bond Act, as soon as | 13 |
| practical after the effective date of this amendatory Act of | 14 |
| the 93rd General Assembly.
| 15 |
| On or before May 1, 2004, the Board shall recalculate and | 16 |
| recertify
to the Governor and to each department the amount of | 17 |
| the required State
contribution to the System and the required | 18 |
| rates for State contributions
to the System for State fiscal | 19 |
| year 2005, taking into account the amounts
appropriated to and | 20 |
| received by the System under subsection (d) of Section
7.2 of | 21 |
| the General Obligation Bond Act.
| 22 |
| On or before July 1, 2005, the Board shall recalculate and | 23 |
| recertify
to the Governor and to each department the amount of | 24 |
| the required State
contribution to the System and the required | 25 |
| rates for State contributions
to the System for State fiscal | 26 |
| year 2006, taking into account the changes in required State |
|
|
|
SB0788 Engrossed |
- 30 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| contributions made by this amendatory Act of the 94th General | 2 |
| Assembly.
| 3 |
| On or before July 1, 2008, the Board shall recalculate and | 4 |
| recertify to the Governor and to each Department the amount of | 5 |
| the required State contribution to the System and the required | 6 |
| rates for State contribution to the System for State fiscal | 7 |
| year 2009, taking into account the changes in required | 8 |
| contributions made by this amendatory Act of the 95th General | 9 |
| Assembly. | 10 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4, | 11 |
| eff. 6-1-05.)
| 12 |
| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 13 |
| Sec. 15-155. Employer contributions.
| 14 |
| (a) The State of Illinois shall make contributions by | 15 |
| appropriations of
amounts which, together with the other | 16 |
| employer contributions from trust,
federal, and other funds, | 17 |
| employee contributions, income from investments,
and other | 18 |
| income of this System, will be sufficient to meet the cost of
| 19 |
| maintaining and administering the System on a 90% funded basis | 20 |
| in accordance
with actuarial recommendations.
| 21 |
| The Board shall determine the amount of State contributions | 22 |
| required for
each fiscal year on the basis of the actuarial | 23 |
| tables and other assumptions
adopted by the Board and the | 24 |
| recommendations of the actuary, using the formula
in subsection | 25 |
| (a-1).
|
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| (a-1) Except as otherwise provided in this Section, the For | 2 |
| State fiscal years 2011 through 2045, the minimum contribution
| 3 |
| to the System to be made by the State for each fiscal year | 4 |
| shall be an amount
determined by the System to be sufficient to | 5 |
| bring the total assets of the
System up to 90% of the total | 6 |
| actuarial liabilities of the System by the end of
State fiscal | 7 |
| year 2034, as 2045. In making these determinations, the | 8 |
| required State
contribution shall be calculated each year as a | 9 |
| level percentage of payroll
over the years remaining to and | 10 |
| including fiscal year 2045 and shall be
determined under the | 11 |
| projected unit credit actuarial cost method.
| 12 |
| For State fiscal years 1996 through 2005, the State | 13 |
| contribution to
the System, as a percentage of the applicable | 14 |
| employee payroll, shall be
increased in equal annual increments | 15 |
| so that by State fiscal year 2011, the
State is contributing at | 16 |
| the rate required under this Section.
| 17 |
| Notwithstanding any other provision of this Article, the | 18 |
| total required State
contribution for State fiscal year 2006 is | 19 |
| $166,641,900.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2007 is | 22 |
| $252,064,100.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State contribution for State fiscal year 2009 is | 25 |
| $422,189,000, less that percentage of estimated fiscal year | 26 |
| 2009 debt service payable on bonds authorized by this |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| amendatory Act of the 95th General Assembly that is | 2 |
| attributable to the percentage of bond proceeds received by the | 3 |
| System. | 4 |
| For each of State fiscal years 2010 2008 through 2038 2010 , | 5 |
| the State contribution to
the System , as a percentage of the | 6 |
| applicable employee payroll, shall be
increased in an equal | 7 |
| annual amount equal to the increase from the required State | 8 |
| contribution from the preceding fiscal year, and this increase | 9 |
| shall be increased by 3% each year increments from the required | 10 |
| State contribution for State fiscal year 2007 , so that by State | 11 |
| fiscal year 2038 2011 , the
State is contributing at the rate | 12 |
| otherwise required under this Section. If in any year this | 13 |
| specified payment, when actuarially projected forward, should | 14 |
| not be sufficient to achieve 90% funding by 2038, then that | 15 |
| year's contribution shall be the amount necessary when taken as | 16 |
| a level dollar increase, increased by 3% each year, to achieve | 17 |
| 90% funding by 2038.
| 18 |
| Beginning in State fiscal year 2039 or the fiscal year | 19 |
| following that fiscal year during which 90% funding is | 20 |
| achieved, the minimum State contribution for each fiscal year | 21 |
| shall be the amount determined by the System to be sufficient | 22 |
| to accumulate total System assets equal to 90% of the total | 23 |
| actuarial liabilities of the System over 30 years. In making | 24 |
| these determinations, the required State contribution shall be | 25 |
| calculated each year as a level percentage of employee payroll | 26 |
| over 30 years and shall be determined under the project unit |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| credit actuarial cost method. 2046, the minimum State | 2 |
| contribution for
each fiscal year shall be the amount needed to | 3 |
| maintain the total assets of
the System at 90% of the total | 4 |
| actuarial liabilities of the System.
| 5 |
| Amounts received by the System pursuant to Section 25 of | 6 |
| the Budget Stabilization Act in any fiscal year do not reduce | 7 |
| and do not constitute payment of any portion of the minimum | 8 |
| State contribution required under this Article in that fiscal | 9 |
| year. Such amounts shall not reduce, and shall not be included | 10 |
| in the calculation of, the required State contributions under | 11 |
| this Article in any future year until the System has reached a | 12 |
| funding ratio of at least 90%. A reference in this Article to | 13 |
| the "required State contribution" or any substantially similar | 14 |
| term does not include or apply to any amounts payable to the | 15 |
| System under Section 25 of the Budget Stabilization Act. | 16 |
| Notwithstanding any other provision of this Section, the | 17 |
| required State
contribution for State fiscal year 2005 and for | 18 |
| fiscal year 2008 and for fiscal year 2010 and each fiscal year | 19 |
| thereafter, as
calculated under this Section and
certified | 20 |
| under Section 15-165, shall not exceed an amount equal to (i) | 21 |
| the
amount of the required State contribution that would have | 22 |
| been calculated under
this Section for that fiscal year if the | 23 |
| System had not received any payments
under subsection (d) of | 24 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 25 |
| portion of the State's total debt service payments for that | 26 |
| fiscal
year on the bonds issued for the purposes of that |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| Section 7.2, as determined
and certified by the Comptroller, | 2 |
| that is the same as the System's portion of
the total moneys | 3 |
| distributed under subsection (d) of Section 7.2 of the General
| 4 |
| Obligation Bond Act. In determining this maximum for State | 5 |
| fiscal years 2008 through 2010, however, the amount referred to | 6 |
| in item (i) shall be increased, as a percentage of the | 7 |
| applicable employee payroll, in equal increments calculated | 8 |
| from the sum of the required State contribution for State | 9 |
| fiscal year 2007 plus the applicable portion of the State's | 10 |
| total debt service payments for fiscal year 2007 on the bonds | 11 |
| issued for the purposes of Section 7.2 of the General
| 12 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
| 13 |
| State is contributing at the rate otherwise required under this | 14 |
| Section.
| 15 |
| (b) If an employee is paid from trust or federal funds, the | 16 |
| employer
shall pay to the Board contributions from those funds | 17 |
| which are
sufficient to cover the accruing normal costs on | 18 |
| behalf of the employee.
However, universities having employees | 19 |
| who are compensated out of local
auxiliary funds, income funds, | 20 |
| or service enterprise funds are not required
to pay such | 21 |
| contributions on behalf of those employees. The local auxiliary
| 22 |
| funds, income funds, and service enterprise funds of | 23 |
| universities shall not be
considered trust funds for the | 24 |
| purpose of this Article, but funds of alumni
associations, | 25 |
| foundations, and athletic associations which are affiliated | 26 |
| with
the universities included as employers under this Article |
|
|
|
SB0788 Engrossed |
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|
| 1 |
| and other employers
which do not receive State appropriations | 2 |
| are considered to be trust funds for
the purpose of this | 3 |
| Article.
| 4 |
| (b-1) The City of Urbana and the City of Champaign shall | 5 |
| each make
employer contributions to this System for their | 6 |
| respective firefighter
employees who participate in this | 7 |
| System pursuant to subsection (h) of Section
15-107. The rate | 8 |
| of contributions to be made by those municipalities shall
be | 9 |
| determined annually by the Board on the basis of the actuarial | 10 |
| assumptions
adopted by the Board and the recommendations of the | 11 |
| actuary, and shall be
expressed as a percentage of salary for | 12 |
| each such employee. The Board shall
certify the rate to the | 13 |
| affected municipalities as soon as may be practical.
The | 14 |
| employer contributions required under this subsection shall be | 15 |
| remitted by
the municipality to the System at the same time and | 16 |
| in the same manner as
employee contributions.
| 17 |
| (c) Through State fiscal year 1995: The total employer | 18 |
| contribution shall
be apportioned among the various funds of | 19 |
| the State and other employers,
whether trust, federal, or other | 20 |
| funds, in accordance with actuarial procedures
approved by the | 21 |
| Board. State of Illinois contributions for employers receiving
| 22 |
| State appropriations for personal services shall be payable | 23 |
| from appropriations
made to the employers or to the System. The | 24 |
| contributions for Class I
community colleges covering earnings | 25 |
| other than those paid from trust and
federal funds, shall be | 26 |
| payable solely from appropriations to the Illinois
Community |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| College Board or the System for employer contributions.
| 2 |
| (d) Beginning in State fiscal year 1996, the required State | 3 |
| contributions
to the System shall be appropriated directly to | 4 |
| the System and shall be payable
through vouchers issued in | 5 |
| accordance with subsection (c) of Section 15-165, except as | 6 |
| provided in subsection (g).
| 7 |
| (e) The State Comptroller shall draw warrants payable to | 8 |
| the System upon
proper certification by the System or by the | 9 |
| employer in accordance with the
appropriation laws and this | 10 |
| Code.
| 11 |
| (f) Normal costs under this Section means liability for
| 12 |
| pensions and other benefits which accrues to the System because | 13 |
| of the
credits earned for service rendered by the participants | 14 |
| during the
fiscal year and expenses of administering the | 15 |
| System, but shall not
include the principal of or any | 16 |
| redemption premium or interest on any bonds
issued by the Board | 17 |
| or any expenses incurred or deposits required in
connection | 18 |
| therewith.
| 19 |
| (g) If the amount of a participant's earnings for any | 20 |
| academic year used to determine the final rate of earnings, | 21 |
| determined on a full-time equivalent basis, exceeds the amount | 22 |
| of his or her earnings with the same employer for the previous | 23 |
| academic year, determined on a full-time equivalent basis, by | 24 |
| more than 6%, the participant's employer shall pay to the | 25 |
| System, in addition to all other payments required under this | 26 |
| Section and in accordance with guidelines established by the |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| System, the present value of the increase in benefits resulting | 2 |
| from the portion of the increase in earnings that is in excess | 3 |
| of 6%. This present value shall be computed by the System on | 4 |
| the basis of the actuarial assumptions and tables used in the | 5 |
| most recent actuarial valuation of the System that is available | 6 |
| at the time of the computation. The System may require the | 7 |
| employer to provide any pertinent information or | 8 |
| documentation. | 9 |
| Whenever it determines that a payment is or may be required | 10 |
| under this subsection (g), the System shall calculate the | 11 |
| amount of the payment and bill the employer for that amount. | 12 |
| The bill shall specify the calculations used to determine the | 13 |
| amount due. If the employer disputes the amount of the bill, it | 14 |
| may, within 30 days after receipt of the bill, apply to the | 15 |
| System in writing for a recalculation. The application must | 16 |
| specify in detail the grounds of the dispute and, if the | 17 |
| employer asserts that the calculation is subject to subsection | 18 |
| (h) or (i) of this Section, must include an affidavit setting | 19 |
| forth and attesting to all facts within the employer's | 20 |
| knowledge that are pertinent to the applicability of subsection | 21 |
| (h) or (i). Upon receiving a timely application for | 22 |
| recalculation, the System shall review the application and, if | 23 |
| appropriate, recalculate the amount due.
| 24 |
| The employer contributions required under this subsection | 25 |
| (f) may be paid in the form of a lump sum within 90 days after | 26 |
| receipt of the bill. If the employer contributions are not paid |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| within 90 days after receipt of the bill, then interest will be | 2 |
| charged at a rate equal to the System's annual actuarially | 3 |
| assumed rate of return on investment compounded annually from | 4 |
| the 91st day after receipt of the bill. Payments must be | 5 |
| concluded within 3 years after the employer's receipt of the | 6 |
| bill. | 7 |
| (h) This subsection (h) applies only to payments made or | 8 |
| salary increases given on or after June 1, 2005 but before July | 9 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 10 |
| require the System to refund any payments received before July | 11 |
| 31, 2006 (the effective date of Public Act 94-1057). | 12 |
| When assessing payment for any amount due under subsection | 13 |
| (g), the System shall exclude earnings increases paid to | 14 |
| participants under contracts or collective bargaining | 15 |
| agreements entered into, amended, or renewed before June 1, | 16 |
| 2005.
| 17 |
| When assessing payment for any amount due under subsection | 18 |
| (g), the System shall exclude earnings increases paid to a | 19 |
| participant at a time when the participant is 10 or more years | 20 |
| from retirement eligibility under Section 15-135.
| 21 |
| When assessing payment for any amount due under subsection | 22 |
| (g), the System shall exclude earnings increases resulting from | 23 |
| overload work, including a contract for summer teaching, or | 24 |
| overtime when the employer has certified to the System, and the | 25 |
| System has approved the certification, that: (i) in the case of | 26 |
| overloads (A) the overload work is for the sole purpose of |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| academic instruction in excess of the standard number of | 2 |
| instruction hours for a full-time employee occurring during the | 3 |
| academic year that the overload is paid and (B) the earnings | 4 |
| increases are equal to or less than the rate of pay for | 5 |
| academic instruction computed using the participant's current | 6 |
| salary rate and work schedule; and (ii) in the case of | 7 |
| overtime, the overtime was necessary for the educational | 8 |
| mission. | 9 |
| When assessing payment for any amount due under subsection | 10 |
| (g), the System shall exclude any earnings increase resulting | 11 |
| from (i) a promotion for which the employee moves from one | 12 |
| classification to a higher classification under the State | 13 |
| Universities Civil Service System, (ii) a promotion in academic | 14 |
| rank for a tenured or tenure-track faculty position, or (iii) a | 15 |
| promotion that the Illinois Community College Board has | 16 |
| recommended in accordance with subsection (k) of this Section. | 17 |
| These earnings increases shall be excluded only if the | 18 |
| promotion is to a position that has existed and been filled by | 19 |
| a member for no less than one complete academic year and the | 20 |
| earnings increase as a result of the promotion is an increase | 21 |
| that results in an amount no greater than the average salary | 22 |
| paid for other similar positions. | 23 |
| (i) When assessing payment for any amount due under | 24 |
| subsection (g), the System shall exclude any salary increase | 25 |
| described in subsection (h) of this Section given on or after | 26 |
| July 1, 2011 but before July 1, 2014 under a contract or |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| collective bargaining agreement entered into, amended, or | 2 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 3 |
| Notwithstanding any other provision of this Section, any | 4 |
| payments made or salary increases given after June 30, 2014 | 5 |
| shall be used in assessing payment for any amount due under | 6 |
| subsection (g) of this Section.
| 7 |
| (j) The System shall prepare a report and file copies of | 8 |
| the report with the Governor and the General Assembly by | 9 |
| January 1, 2007 that contains all of the following information: | 10 |
| (1) The number of recalculations required by the | 11 |
| changes made to this Section by Public Act 94-1057 for each | 12 |
| employer. | 13 |
| (2) The dollar amount by which each employer's | 14 |
| contribution to the System was changed due to | 15 |
| recalculations required by Public Act 94-1057. | 16 |
| (3) The total amount the System received from each | 17 |
| employer as a result of the changes made to this Section by | 18 |
| Public Act 94-4. | 19 |
| (4) The increase in the required State contribution | 20 |
| resulting from the changes made to this Section by Public | 21 |
| Act 94-1057. | 22 |
| (k) The Illinois Community College Board shall adopt rules | 23 |
| for recommending lists of promotional positions submitted to | 24 |
| the Board by community colleges and for reviewing the | 25 |
| promotional lists on an annual basis. When recommending | 26 |
| promotional lists, the Board shall consider the similarity of |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| the positions submitted to those positions recognized for State | 2 |
| universities by the State Universities Civil Service System. | 3 |
| The Illinois Community College Board shall file a copy of its | 4 |
| findings with the System. The System shall consider the | 5 |
| findings of the Illinois Community College Board when making | 6 |
| determinations under this Section. The System shall not exclude | 7 |
| any earnings increases resulting from a promotion when the | 8 |
| promotion was not submitted by a community college. Nothing in | 9 |
| this subsection (k) shall require any community college to | 10 |
| submit any information to the Community College Board.
| 11 |
| (l) Notwithstanding this Code or any other law to the | 12 |
| contrary, the Board must ensure that at least 19% of the | 13 |
| proceeds from the issuance of general obligation bonds under | 14 |
| the General Obligation Bond Act authorized by this amendatory | 15 |
| Act of the 95th General Assembly are invested through qualified | 16 |
| investment advisers who are a "minority owned business" or a | 17 |
| "female owned business" as those terms are defined in the | 18 |
| Business Enterprise for Minorities, Females, and Persons with | 19 |
| Disabilities Act. | 20 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 21 |
| eff. 7-31-06; 95-331, eff. 8-21-07.)
| 22 |
| (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 23 |
| Sec. 15-165. To certify amounts and submit vouchers.
| 24 |
| (a) The Board shall certify to the Governor on or before | 25 |
| November 15 of each
year the appropriation required from State |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| funds for the purposes of this
System for the following fiscal | 2 |
| year. The certification shall include a copy
of the actuarial | 3 |
| recommendations upon which it is based.
| 4 |
| On or before May 1, 2004, the Board shall recalculate and | 5 |
| recertify to
the Governor the amount of the required State | 6 |
| contribution to the System for
State fiscal year 2005, taking | 7 |
| into account the amounts appropriated to and
received by the | 8 |
| System under subsection (d) of Section 7.2 of the General
| 9 |
| Obligation Bond Act.
| 10 |
| On or before July 1, 2005, the Board shall recalculate and | 11 |
| recertify
to the Governor the amount of the required State
| 12 |
| contribution to the System for State fiscal year 2006, taking | 13 |
| into account the changes in required State contributions made | 14 |
| by this amendatory Act of the 94th General Assembly.
| 15 |
| On or before July 1, 2008, 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 2009, taking | 18 |
| into account the changes in required State contributions made | 19 |
| by this amendatory Act of the 95th General Assembly. | 20 |
| (b) The Board shall certify to the State Comptroller or | 21 |
| employer, as the
case may be, from time to time, by its | 22 |
| president and secretary, with its seal
attached, the amounts | 23 |
| payable to the System from the various funds.
| 24 |
| (c) Beginning in State fiscal year 1996, on or as soon as | 25 |
| possible after the
15th day of each month the Board shall | 26 |
| submit vouchers for payment of State
contributions to the |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| System, in a total monthly amount of one-twelfth of the
| 2 |
| required annual State contribution certified under subsection | 3 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 4 |
| General Assembly through June 30, 2004, the Board shall not
| 5 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 6 |
| of the
fiscal year 2004 certified contribution amount | 7 |
| determined
under this Section after taking into consideration | 8 |
| the transfer to the
System under subsection (b) of Section | 9 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 10 |
| the State Comptroller and Treasurer by warrants drawn
on the | 11 |
| funds appropriated to the System for that fiscal year.
| 12 |
| If in any month the amount remaining unexpended from all | 13 |
| other
appropriations to the System for the applicable fiscal | 14 |
| year (including the
appropriations to the System under Section | 15 |
| 8.12 of the State Finance Act and
Section 1 of the State | 16 |
| Pension Funds Continuing Appropriation Act) is less than
the | 17 |
| amount lawfully vouchered under this Section, the difference | 18 |
| shall be paid
from the General Revenue Fund under the | 19 |
| continuing appropriation authority
provided in Section 1.1 of | 20 |
| the State Pension Funds Continuing Appropriation
Act.
| 21 |
| (d) So long as the payments received are the full amount | 22 |
| lawfully
vouchered under this Section, payments received by the | 23 |
| System under this
Section shall be applied first toward the | 24 |
| employer contribution to the
self-managed plan established | 25 |
| under Section 15-158.2. Payments shall be
applied second toward | 26 |
| the employer's portion of the normal costs of the System,
as |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| defined in subsection (f) of Section 15-155. The balance shall | 2 |
| be applied
toward the unfunded actuarial liabilities of the | 3 |
| System.
| 4 |
| (e) In the event that the System does not receive, as a | 5 |
| result of
legislative enactment or otherwise, payments | 6 |
| sufficient to
fully fund the employer contribution to the | 7 |
| self-managed plan
established under Section 15-158.2 and to | 8 |
| fully fund that portion of the
employer's portion of the normal | 9 |
| costs of the System, as calculated in
accordance with Section | 10 |
| 15-155(a-1), then any payments received shall be
applied | 11 |
| proportionately to the optional retirement program established | 12 |
| under
Section 15-158.2 and to the employer's portion of the | 13 |
| normal costs of the
System, as calculated in accordance with | 14 |
| Section 15-155(a-1).
| 15 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 16 |
| eff. 6-1-05.)
| 17 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 18 |
| Sec. 16-158. Contributions by State and other employing | 19 |
| units.
| 20 |
| (a) The State shall make contributions to the System by | 21 |
| means of
appropriations from the Common School Fund and other | 22 |
| State funds of amounts
which, together with other employer | 23 |
| contributions, employee contributions,
investment income, and | 24 |
| other income, will be sufficient to meet the cost of
| 25 |
| maintaining and administering the System on a 90% funded basis |
|
|
|
SB0788 Engrossed |
- 45 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| in accordance
with actuarial recommendations.
| 2 |
| The Board shall determine the amount of State contributions | 3 |
| required for
each fiscal year on the basis of the actuarial | 4 |
| tables and other assumptions
adopted by the Board and the | 5 |
| recommendations of the actuary, using the formula
in subsection | 6 |
| (b-3).
| 7 |
| (a-1) Annually, on or before November 15, the Board shall | 8 |
| certify to the
Governor the amount of the required State | 9 |
| contribution for the coming fiscal
year. The certification | 10 |
| shall include a copy of the actuarial recommendations
upon | 11 |
| which it is based.
| 12 |
| On or before May 1, 2004, the Board shall recalculate and | 13 |
| recertify to
the Governor the amount of the required State | 14 |
| contribution to the System for
State fiscal year 2005, taking | 15 |
| into account the amounts appropriated to and
received by the | 16 |
| System under subsection (d) of Section 7.2 of the General
| 17 |
| Obligation Bond Act.
| 18 |
| On or before July 1, 2005, the Board shall recalculate and | 19 |
| recertify
to the Governor the amount of the required State
| 20 |
| contribution to the System for State fiscal year 2006, taking | 21 |
| into account the changes in required State contributions made | 22 |
| by this amendatory Act of the 94th General Assembly.
| 23 |
| On or before July 1, 2008, the board shall recalculate and | 24 |
| recertify to the Governor the amount of the required State | 25 |
| contribution to the System for State fiscal year 2009, taking | 26 |
| into account the changes in required contributions made by this |
|
|
|
SB0788 Engrossed |
- 46 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| amendatory Act of the 95th General Assembly. | 2 |
| (b) Through State fiscal year 1995, the State contributions | 3 |
| shall be
paid to the System in accordance with Section 18-7 of | 4 |
| the School Code.
| 5 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 6 |
| of each month,
or as soon thereafter as may be practicable, the | 7 |
| Board shall submit vouchers
for payment of State contributions | 8 |
| to the System, in a total monthly amount of
one-twelfth of the | 9 |
| required annual State contribution certified under
subsection | 10 |
| (a-1).
From the
effective date of this amendatory Act of the | 11 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 12 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 13 |
| excess of the fiscal year 2004
certified contribution amount | 14 |
| determined under this Section
after taking into consideration | 15 |
| the transfer to the System
under subsection (a) of Section | 16 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 17 |
| the State Comptroller and
Treasurer by warrants drawn on the | 18 |
| funds appropriated to the System for that
fiscal year.
| 19 |
| If in any month the amount remaining unexpended from all | 20 |
| other appropriations
to the System for the applicable fiscal | 21 |
| year (including the appropriations to
the System under Section | 22 |
| 8.12 of the State Finance Act and Section 1 of the
State | 23 |
| Pension Funds Continuing Appropriation Act) is less than the | 24 |
| amount
lawfully vouchered under this subsection, the | 25 |
| difference shall be paid from the
Common School Fund under the | 26 |
| continuing appropriation authority provided in
Section 1.1 of |
|
|
|
SB0788 Engrossed |
- 47 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| the State Pension Funds Continuing Appropriation Act.
| 2 |
| (b-2) Allocations from the Common School Fund apportioned | 3 |
| to school
districts not coming under this System shall not be | 4 |
| diminished or affected by
the provisions of this Article.
| 5 |
| (b-3) Except as otherwise provided in this Section, the For | 6 |
| State fiscal years 2011 through 2045, the minimum contribution
| 7 |
| to the System to be made by the State for each fiscal year | 8 |
| shall be an amount
determined by the System to be sufficient to | 9 |
| bring the total assets of the
System up to 90% of the total | 10 |
| actuarial liabilities of the System by the end of
State fiscal | 11 |
| year 2034, as 2045. In making these determinations, the | 12 |
| required State
contribution shall be calculated each year as a | 13 |
| level percentage of payroll
over the years remaining to and | 14 |
| including fiscal year 2045 and shall be
determined under the | 15 |
| projected unit credit actuarial cost method.
| 16 |
| For State fiscal years 1996 through 2005, the State | 17 |
| contribution to the
System, as a percentage of the applicable | 18 |
| employee payroll, shall be increased
in equal annual increments | 19 |
| so that by State fiscal year 2011, the State is
contributing at | 20 |
| the rate required under this Section; except that in the
| 21 |
| following specified State fiscal years, the State contribution | 22 |
| to the System
shall not be less than the following indicated | 23 |
| percentages of the applicable
employee payroll, even if the | 24 |
| indicated percentage will produce a State
contribution in | 25 |
| excess of the amount otherwise required under this subsection
| 26 |
| and subsection (a), and notwithstanding any contrary |
|
|
|
SB0788 Engrossed |
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LRB095 05457 RCE 25547 b |
|
| 1 |
| certification made under
subsection (a-1) before the effective | 2 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 3 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 4 |
| 2003; and
13.56% in FY 2004.
| 5 |
| Notwithstanding any other provision of this Article, the | 6 |
| total required State
contribution for State fiscal year 2006 is | 7 |
| $534,627,700.
| 8 |
| Notwithstanding any other provision of this Article, the | 9 |
| total required State
contribution for State fiscal year 2007 is | 10 |
| $738,014,500.
| 11 |
| Notwithstanding any other provision of this Article, the | 12 |
| total required State contribution for State fiscal year 2009 is | 13 |
| $1,194,588,000, less that percentage of estimated fiscal year | 14 |
| 2009 debt service payable on bonds authorized by this | 15 |
| amendatory Act of the 95th General Assembly that is | 16 |
| attributable to the percentage of bond proceeds received by the | 17 |
| System. | 18 |
| For each of State fiscal years 2010 2008 through 2038 2010 , | 19 |
| the State contribution to
the System, as a percentage of the | 20 |
| applicable employee payroll, shall be
increased in an equal | 21 |
| annual amount equal to the increase from the required State | 22 |
| contribution from the preceding fiscal year, and this increase | 23 |
| shall be increased by 3% each year increments from the required | 24 |
| State contribution for State fiscal year 2007 , so that by State | 25 |
| fiscal year 2038 2011 , the
State is contributing at the rate | 26 |
| otherwise required under this Section.
If in any year this |
|
|
|
SB0788 Engrossed |
- 49 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| specified payment, when actuarially projected forward, should | 2 |
| not be sufficient to achieve 90% funding by 2038, then that | 3 |
| year's contribution shall be the amount necessary when taken as | 4 |
| a level dollar increase, increased by 3% each year, to achieve | 5 |
| 90% funding by 2038. | 6 |
| Beginning in State fiscal year 2039 or the fiscal year | 7 |
| following that fiscal year during which 90% funding is | 8 |
| achieved, the minimum State contribution for each fiscal year | 9 |
| shall be the amount determined by the System to be sufficient | 10 |
| to accumulate total System assets equal to 90% of the total | 11 |
| actuarial liabilities of the System over 30 years. In making | 12 |
| these determinations, the required State contribution shall be | 13 |
| calculated each year as a level percentage of employee payroll | 14 |
| over 30 years and shall be determined under the project unit | 15 |
| credit actuarial cost method. 2046, the minimum State | 16 |
| contribution for
each fiscal year shall be the amount needed to | 17 |
| maintain the total assets of
the System at 90% of the total | 18 |
| actuarial liabilities of the System.
| 19 |
| Amounts received by the System pursuant to Section 25 of | 20 |
| the Budget Stabilization Act in any fiscal year do not reduce | 21 |
| and do not constitute payment of any portion of the minimum | 22 |
| State contribution required under this Article in that fiscal | 23 |
| year. Such amounts shall not reduce, and shall not be included | 24 |
| in the calculation of, the required State contributions under | 25 |
| this Article in any future year until the System has reached a | 26 |
| funding ratio of at least 90%. A reference in this Article to |
|
|
|
SB0788 Engrossed |
- 50 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| the "required State contribution" or any substantially similar | 2 |
| term does not include or apply to any amounts payable to the | 3 |
| 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 for fiscal year 2010 and each fiscal year | 7 |
| thereafter, as
calculated under this Section and
certified | 8 |
| under subsection (a-1), shall not exceed an amount equal to (i) | 9 |
| the
amount of the required State contribution that would have | 10 |
| been calculated under
this Section for that fiscal year if the | 11 |
| System had not received any payments
under subsection (d) of | 12 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 13 |
| portion of the State's total debt service payments for that | 14 |
| fiscal
year on the bonds issued for the purposes of that | 15 |
| Section 7.2, as determined
and certified by the Comptroller, | 16 |
| that is the same as the System's portion of
the total moneys | 17 |
| distributed under subsection (d) of Section 7.2 of the General
| 18 |
| Obligation Bond Act. In determining this maximum for State | 19 |
| fiscal years 2008 through 2010, however, the amount referred to | 20 |
| in item (i) shall be increased, as a percentage of the | 21 |
| applicable employee payroll, in equal increments calculated | 22 |
| from the sum of the required State contribution for State | 23 |
| fiscal year 2007 plus the applicable portion of the State's | 24 |
| total debt service payments for fiscal year 2007 on the bonds | 25 |
| issued for the purposes of Section 7.2 of the General
| 26 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
|
|
|
|
SB0788 Engrossed |
- 51 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| State is contributing at the rate otherwise required under this | 2 |
| 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) |
|
|
|
SB0788 Engrossed |
- 52 - |
LRB095 05457 RCE 25547 b |
|
| 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 |
|
|
|
SB0788 Engrossed |
- 53 - |
LRB095 05457 RCE 25547 b |
|
| 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 |
|
|
|
SB0788 Engrossed |
- 54 - |
LRB095 05457 RCE 25547 b |
|
| 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 |
|
|
|
SB0788 Engrossed |
- 55 - |
LRB095 05457 RCE 25547 b |
|
| 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). |
|
|
|
SB0788 Engrossed |
- 56 - |
LRB095 05457 RCE 25547 b |
|
| 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 |
|
|
|
SB0788 Engrossed |
- 57 - |
LRB095 05457 RCE 25547 b |
|
| 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 |
|
|
|
SB0788 Engrossed |
- 58 - |
LRB095 05457 RCE 25547 b |
|
| 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) Notwithstanding this Code or any other law to the | 13 |
| contrary, the Board must ensure that at least 19% of the | 14 |
| proceeds from the issuance of general obligation bonds under | 15 |
| the General Obligation Bond Act authorized by this amendatory | 16 |
| Act of the 95th General Assembly are invested through qualified | 17 |
| investment advisers who are a "minority owned business" or a | 18 |
| "female owned business" as those terms are defined in the | 19 |
| Business Enterprise for Minorities, Females, and Persons with | 20 |
| Disabilities Act. | 21 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 22 |
| eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07.)
| 23 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 24 |
| Sec. 18-131. Financing; employer contributions.
| 25 |
| (a) The State of Illinois shall make contributions to this |
|
|
|
SB0788 Engrossed |
- 59 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| System by
appropriations of the amounts which, together with | 2 |
| the contributions of
participants, net earnings on | 3 |
| investments, and other income, will meet the
costs of | 4 |
| maintaining and administering this System on a 90% funded basis | 5 |
| in
accordance with actuarial recommendations.
| 6 |
| (b) The Board shall determine the 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 and | 9 |
| the prescribed rate of interest, using
the formula in | 10 |
| subsection (c).
| 11 |
| (c) Except as otherwise provided in this Section, the For | 12 |
| State fiscal years 2011 through 2045, the minimum contribution
| 13 |
| to the System to be made by the State for each fiscal year | 14 |
| shall be an amount
determined by the System to be sufficient to | 15 |
| bring the total assets of the
System up to 90% of the total | 16 |
| actuarial liabilities of the System by the end of
State fiscal | 17 |
| year 2034, as 2045. In making these determinations, the | 18 |
| required State
contribution shall be calculated each year as a | 19 |
| level percentage of payroll
over the years remaining to and | 20 |
| including fiscal year 2045 and shall be
determined under the | 21 |
| projected unit credit actuarial cost method.
| 22 |
| For State fiscal years 1996 through 2005, the State | 23 |
| contribution to
the System, as a percentage of the applicable | 24 |
| employee payroll, shall be
increased in equal annual increments | 25 |
| so that by State fiscal year 2011, the
State is contributing at | 26 |
| the rate required under this Section.
|
|
|
|
SB0788 Engrossed |
- 60 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| Notwithstanding any other provision of this Article, the | 2 |
| total required State
contribution for State fiscal year 2006 is | 3 |
| $29,189,400.
| 4 |
| Notwithstanding any other provision of this Article, the | 5 |
| total required State
contribution for State fiscal year 2007 is | 6 |
| $35,236,800.
| 7 |
| Notwithstanding any other provision of this Article, the | 8 |
| total required State contribution for State fiscal year 2009 is | 9 |
| $51,931,000, less that percentage of estimated fiscal year 2009 | 10 |
| debt service payable on bonds authorized by this amendatory Act | 11 |
| of the 95th General Assembly that is attributable to the | 12 |
| percentage of bond proceeds received by the System. | 13 |
| For each of State fiscal years 2010 2008 through 2038 2010 , | 14 |
| the State contribution to
the System , as a percentage of the | 15 |
| applicable employee payroll, shall be
increased in an equal | 16 |
| annual amount equal to the increase from the required State | 17 |
| contribution from the preceding fiscal year, and this increase | 18 |
| shall be increased by 3% each year increments from the required | 19 |
| State contribution for State fiscal year 2007 , so that by State | 20 |
| fiscal year 2038 2011 , the
State is contributing at the rate | 21 |
| otherwise required under this Section. If in any year this | 22 |
| specified payment, when actuarially projected forward, should | 23 |
| not be sufficient to achieve 90% funding by 2038, then that | 24 |
| year's contribution shall be the amount necessary when taken as | 25 |
| a level dollar increase, increased by 3% each year, to achieve | 26 |
| 90% funding by 2038.
|
|
|
|
SB0788 Engrossed |
- 61 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| Beginning in State fiscal year 2039 or the fiscal year | 2 |
| following that fiscal year during which 90% funding is | 3 |
| achieved, the minimum State contribution for each fiscal year | 4 |
| shall be the amount determined by the System to be sufficient | 5 |
| to accumulate total System assets equal to 90% of the total | 6 |
| actuarial liabilities of the System over 30 years. In making | 7 |
| these determinations, the required State contribution shall be | 8 |
| calculated each year as a level percentage of employee payroll | 9 |
| over 30 years and shall be determined under the project unit | 10 |
| credit actuarial cost method. 2046, 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 in any fiscal year do not reduce | 16 |
| and do not constitute payment of any portion of the minimum | 17 |
| State contribution required under this Article in that fiscal | 18 |
| year. Such amounts shall not reduce, and shall not be included | 19 |
| in the calculation of, the required State contributions under | 20 |
| this Article in any future year until the System has reached a | 21 |
| funding ratio of at least 90%. A reference in this Article to | 22 |
| the "required State contribution" or any substantially similar | 23 |
| term does not include or apply to any amounts payable to the | 24 |
| System under Section 25 of the Budget Stabilization Act.
| 25 |
| Notwithstanding any other provision of this Section, the | 26 |
| required State
contribution for State fiscal year 2005 and for |
|
|
|
SB0788 Engrossed |
- 62 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| fiscal year 2008 and for fiscal year 2010 and each fiscal year | 2 |
| thereafter, as
calculated under this Section and
certified | 3 |
| under Section 18-140, shall not exceed an amount equal to (i) | 4 |
| the
amount of the required State contribution that would have | 5 |
| been calculated under
this Section for that fiscal year if the | 6 |
| System had not received any payments
under subsection (d) of | 7 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 8 |
| portion of the State's total debt service payments for that | 9 |
| fiscal
year on the bonds issued for the purposes of that | 10 |
| Section 7.2, as determined
and certified by the Comptroller, | 11 |
| that is the same as the System's portion of
the total moneys | 12 |
| distributed under subsection (d) of Section 7.2 of the General
| 13 |
| Obligation Bond Act. In determining this maximum for State | 14 |
| fiscal years 2008 through 2010, however, the amount referred to | 15 |
| in item (i) shall be increased, as a percentage of the | 16 |
| applicable employee payroll, in equal increments calculated | 17 |
| from the sum of the required State contribution for State | 18 |
| fiscal year 2007 plus the applicable portion of the State's | 19 |
| total debt service payments for fiscal year 2007 on the bonds | 20 |
| issued for the purposes of Section 7.2 of the General
| 21 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
| 22 |
| State is contributing at the rate otherwise required under this | 23 |
| Section.
| 24 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 25 |
| eff. 6-6-06.)
|
|
|
|
SB0788 Engrossed |
- 63 - |
LRB095 05457 RCE 25547 b |
|
| 1 |
| (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 2 |
| Sec. 18-140. To certify required State contributions and | 3 |
| submit vouchers.
| 4 |
| (a) The Board shall certify to the Governor, on or before | 5 |
| November 15 of
each year, the amount of the required State | 6 |
| contribution to the System for the
following fiscal year. The | 7 |
| certification shall include a copy of the actuarial
| 8 |
| 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 July 1, 2008, 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 2009, taking | 23 |
| into account the changes in required contributions made by this | 24 |
| amendatory Act of the 95th General Assembly. | 25 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 26 |
| possible after
the 15th day of each month the Board shall |
|
|
|
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LRB095 05457 RCE 25547 b |
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| 1 |
| submit vouchers for payment of State
contributions to the | 2 |
| System, in a total monthly amount of one-twelfth of the
| 3 |
| required annual State contribution certified under subsection | 4 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 5 |
| General Assembly through June 30, 2004, the Board shall not
| 6 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 7 |
| of the
fiscal year 2004 certified contribution amount | 8 |
| determined
under this Section after taking into consideration | 9 |
| the transfer to the
System under subsection (c) of Section | 10 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 11 |
| the State Comptroller and Treasurer by warrants drawn
on the | 12 |
| funds appropriated to the System for that fiscal year.
| 13 |
| If in any month the amount remaining unexpended from all | 14 |
| other
appropriations to the System for the applicable fiscal | 15 |
| year (including the
appropriations to the System under Section | 16 |
| 8.12 of the State Finance Act and
Section 1 of the State | 17 |
| Pension Funds Continuing Appropriation Act) is less than
the | 18 |
| amount lawfully vouchered under this Section, the difference | 19 |
| shall be paid
from the General Revenue Fund under the | 20 |
| continuing appropriation authority
provided in Section 1.1 of | 21 |
| the State Pension Funds Continuing Appropriation
Act.
| 22 |
| (c) Notwithstanding this Code or any other law to the | 23 |
| contrary, the Board must ensure that at least 19% of the | 24 |
| proceeds from the issuance of general obligation bonds under | 25 |
| the General Obligation Bond Act authorized by this amendatory | 26 |
| Act of the 95th General Assembly are invested through qualified |
|
|
|
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| 1 |
| investment advisers who are a "minority owned business" or a | 2 |
| "female owned business" as those terms are defined in the | 3 |
| Business Enterprise for Minorities, Females, and Persons with | 4 |
| Disabilities Act. | 5 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 6 |
| eff. 6-1-05.)
| 7 |
| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
|
|