HB0350 EngrossedLRB101 06138 RPS 51159 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 15-155 and 16-158 as follows:
 
6    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
7    Sec. 15-155. Employer contributions.
8    (a) The State of Illinois shall make contributions by
9appropriations of amounts which, together with the other
10employer contributions from trust, federal, and other funds,
11employee contributions, income from investments, and other
12income of this System, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15    The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(a-1).
20    (a-1) For State fiscal years 2012 through 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of

 

 

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1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    For each of State fiscal years 2018, 2019, and 2020, the
8State shall make an additional contribution to the System equal
9to 2% of the total payroll of each employee who is deemed to
10have elected the benefits under Section 1-161 or who has made
11the election under subsection (c) of Section 1-161.
12    A change in an actuarial or investment assumption that
13increases or decreases the required State contribution and
14first applies in State fiscal year 2018 or thereafter shall be
15implemented in equal annual amounts over a 5-year period
16beginning in the State fiscal year in which the actuarial
17change first applies to the required State contribution.
18    A change in an actuarial or investment assumption that
19increases or decreases the required State contribution and
20first applied to the State contribution in fiscal year 2014,
212015, 2016, or 2017 shall be implemented:
22        (i) as already applied in State fiscal years before
23    2018; and
24        (ii) in the portion of the 5-year period beginning in
25    the State fiscal year in which the actuarial change first
26    applied that occurs in State fiscal year 2018 or

 

 

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1    thereafter, by calculating the change in equal annual
2    amounts over that 5-year period and then implementing it at
3    the resulting annual rate in each of the remaining fiscal
4    years in that 5-year period.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2006 is
12$166,641,900.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$252,064,100.
16    For each of State fiscal years 2008 through 2009, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19from the required State contribution for State fiscal year
202007, so that by State fiscal year 2011, the State is
21contributing at the rate otherwise required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010 is
24$702,514,000 and shall be made from the State Pensions Fund and
25proceeds of bonds sold in fiscal year 2010 pursuant to Section
267.2 of the General Obligation Bond Act, less (i) the pro rata

 

 

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1share of bond sale expenses determined by the System's share of
2total bond proceeds, (ii) any amounts received from the General
3Revenue Fund in fiscal year 2010, (iii) any reduction in bond
4proceeds due to the issuance of discounted bonds, if
5applicable.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2011 is
8the amount recertified by the System on or before April 1, 2011
9pursuant to Section 15-165 and shall be made from the State
10Pensions Fund and proceeds of bonds sold in fiscal year 2011
11pursuant to Section 7.2 of the General Obligation Bond Act,
12less (i) the pro rata share of bond sale expenses determined by
13the System's share of total bond proceeds, (ii) any amounts
14received from the General Revenue Fund in fiscal year 2011, and
15(iii) any reduction in bond proceeds due to the issuance of
16discounted bonds, if applicable.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under Section 15-165, shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

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1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (a-2) Beginning in fiscal year 2018, each employer under
7this Article shall pay to the System a required contribution
8determined as a percentage of projected payroll and sufficient
9to produce an annual amount equal to:
10        (i) for each of fiscal years 2018, 2019, and 2020, the
11    defined benefit normal cost of the defined benefit plan,
12    less the employee contribution, for each employee of that
13    employer who has elected or who is deemed to have elected
14    the benefits under Section 1-161 or who has made the
15    election under subsection (c) of Section 1-161; for fiscal
16    year 2021 and each fiscal year thereafter, the defined
17    benefit normal cost of the defined benefit plan, less the
18    employee contribution, plus 2%, for each employee of that
19    employer who has elected or who is deemed to have elected
20    the benefits under Section 1-161 or who has made the
21    election under subsection (c) of Section 1-161; plus
22        (ii) the amount required for that fiscal year to
23    amortize any unfunded actuarial accrued liability
24    associated with the present value of liabilities
25    attributable to the employer's account under Section
26    15-155.2, determined as a level percentage of payroll over

 

 

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1    a 30-year rolling amortization period.
2    In determining contributions required under item (i) of
3this subsection, the System shall determine an aggregate rate
4for all employers, expressed as a percentage of projected
5payroll.
6    In determining the contributions required under item (ii)
7of this subsection, the amount shall be computed by the System
8on the basis of the actuarial assumptions and tables used in
9the most recent actuarial valuation of the System that is
10available at the time of the computation.
11    The contributions required under this subsection (a-2)
12shall be paid by an employer concurrently with that employer's
13payroll payment period. The State, as the actual employer of an
14employee, shall make the required contributions under this
15subsection.
16    As used in this subsection, "academic year" means the
1712-month period beginning September 1.
18    (b) If an employee is paid from trust or federal funds, the
19employer shall pay to the Board contributions from those funds
20which are sufficient to cover the accruing normal costs on
21behalf of the employee. However, universities having employees
22who are compensated out of local auxiliary funds, income funds,
23or service enterprise funds are not required to pay such
24contributions on behalf of those employees. The local auxiliary
25funds, income funds, and service enterprise funds of
26universities shall not be considered trust funds for the

 

 

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1purpose of this Article, but funds of alumni associations,
2foundations, and athletic associations which are affiliated
3with the universities included as employers under this Article
4and other employers which do not receive State appropriations
5are considered to be trust funds for the purpose of this
6Article.
7    (b-1) The City of Urbana and the City of Champaign shall
8each make employer contributions to this System for their
9respective firefighter employees who participate in this
10System pursuant to subsection (h) of Section 15-107. The rate
11of contributions to be made by those municipalities shall be
12determined annually by the Board on the basis of the actuarial
13assumptions adopted by the Board and the recommendations of the
14actuary, and shall be expressed as a percentage of salary for
15each such employee. The Board shall certify the rate to the
16affected municipalities as soon as may be practical. The
17employer contributions required under this subsection shall be
18remitted by the municipality to the System at the same time and
19in the same manner as employee contributions.
20    (c) Through State fiscal year 1995: The total employer
21contribution shall be apportioned among the various funds of
22the State and other employers, whether trust, federal, or other
23funds, in accordance with actuarial procedures approved by the
24Board. State of Illinois contributions for employers receiving
25State appropriations for personal services shall be payable
26from appropriations made to the employers or to the System. The

 

 

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1contributions for Class I community colleges covering earnings
2other than those paid from trust and federal funds, shall be
3payable solely from appropriations to the Illinois Community
4College Board or the System for employer contributions.
5    (d) Beginning in State fiscal year 1996, the required State
6contributions to the System shall be appropriated directly to
7the System and shall be payable through vouchers issued in
8accordance with subsection (c) of Section 15-165, except as
9provided in subsection (g).
10    (e) The State Comptroller shall draw warrants payable to
11the System upon proper certification by the System or by the
12employer in accordance with the appropriation laws and this
13Code.
14    (f) Normal costs under this Section means liability for
15pensions and other benefits which accrues to the System because
16of the credits earned for service rendered by the participants
17during the fiscal year and expenses of administering the
18System, but shall not include the principal of or any
19redemption premium or interest on any bonds issued by the Board
20or any expenses incurred or deposits required in connection
21therewith.
22    (g) If For academic years beginning on or after June 1,
232005 and before July 1, 2018 and for earnings paid to a
24participant under a contract or collective bargaining
25agreement entered into, amended, or renewed before the
26effective date of this amendatory Act of the 100th General

 

 

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1Assembly, if the amount of a participant's earnings for any
2academic year used to determine the final rate of earnings,
3determined on a full-time equivalent basis, exceeds the amount
4of his or her earnings with the same employer for the previous
5academic year, determined on a full-time equivalent basis, by
6more than 6%, the participant's employer shall pay to the
7System, in addition to all other payments required under this
8Section and in accordance with guidelines established by the
9System, the present value of the increase in benefits resulting
10from the portion of the increase in earnings that is in excess
11of 6%. This present value shall be computed by the System on
12the basis of the actuarial assumptions and tables used in the
13most recent actuarial valuation of the System that is available
14at the time of the computation. The System may require the
15employer to provide any pertinent information or
16documentation.
17    Whenever it determines that a payment is or may be required
18under this subsection (g), the System shall calculate the
19amount of the payment and bill the employer for that amount.
20The bill shall specify the calculations used to determine the
21amount due. If the employer disputes the amount of the bill, it
22may, within 30 days after receipt of the bill, apply to the
23System in writing for a recalculation. The application must
24specify in detail the grounds of the dispute and, if the
25employer asserts that the calculation is subject to subsection
26(h) or (i) of this Section or that subsection (g-1) applies,

 

 

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1must include an affidavit setting forth and attesting to all
2facts within the employer's knowledge that are pertinent to the
3applicability of that subsection. Upon receiving a timely
4application for recalculation, the System shall review the
5application and, if appropriate, recalculate the amount due.
6    The employer contributions required under this subsection
7(g) may be paid in the form of a lump sum within 90 days after
8receipt of the bill. If the employer contributions are not paid
9within 90 days after receipt of the bill, then interest will be
10charged at a rate equal to the System's annual actuarially
11assumed rate of return on investment compounded annually from
12the 91st day after receipt of the bill. Payments must be
13concluded within 3 years after the employer's receipt of the
14bill.
15    When assessing payment for any amount due under this
16subsection (g), the System shall include earnings, to the
17extent not established by a participant under Section 15-113.11
18or 15-113.12, that would have been paid to the participant had
19the participant not taken (i) periods of voluntary or
20involuntary furlough occurring on or after July 1, 2015 and on
21or before June 30, 2017 or (ii) periods of voluntary pay
22reduction in lieu of furlough occurring on or after July 1,
232015 and on or before June 30, 2017. Determining earnings that
24would have been paid to a participant had the participant not
25taken periods of voluntary or involuntary furlough or periods
26of voluntary pay reduction shall be the responsibility of the

 

 

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1employer, and shall be reported in a manner prescribed by the
2System.
3    This subsection (g) does not apply to (1) Tier 2 hybrid
4plan members and (2) Tier 2 defined benefit members who first
5participate under this Article on or after the implementation
6date of the Optional Hybrid Plan.
7    (g-1) (Blank). For academic years beginning on or after
8July 1, 2018 and for earnings paid to a participant under a
9contract or collective bargaining agreement entered into,
10amended, or renewed on or after the effective date of this
11amendatory Act of the 100th General Assembly, if the amount of
12a participant's earnings for any academic year used to
13determine the final rate of earnings, determined on a full-time
14equivalent basis, exceeds the amount of his or her earnings
15with the same employer for the previous academic year,
16determined on a full-time equivalent basis, by more than 3%,
17then the participant's employer shall pay to the System, in
18addition to all other payments required under this Section and
19in accordance with guidelines established by the System, the
20present value of the increase in benefits resulting from the
21portion of the increase in earnings that is in excess of 3%.
22This present value shall be computed by the System on the basis
23of the actuarial assumptions and tables used in the most recent
24actuarial valuation of the System that is available at the time
25of the computation. The System may require the employer to
26provide any pertinent information or documentation.

 

 

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1    Whenever it determines that a payment is or may be required
2under this subsection (g-1), the System shall calculate the
3amount of the payment and bill the employer for that amount.
4The bill shall specify the calculations used to determine the
5amount due. If the employer disputes the amount of the bill, it
6may, within 30 days after receipt of the bill, apply to the
7System in writing for a recalculation. The application must
8specify in detail the grounds of the dispute and, if the
9employer asserts that subsection (g) of this Section applies,
10must include an affidavit setting forth and attesting to all
11facts within the employer's knowledge that are pertinent to the
12applicability of subsection (g). Upon receiving a timely
13application for recalculation, the System shall review the
14application and, if appropriate, recalculate the amount due.
15    The employer contributions required under this subsection
16(g-1) may be paid in the form of a lump sum within 90 days after
17receipt of the bill. If the employer contributions are not paid
18within 90 days after receipt of the bill, then interest shall
19be charged at a rate equal to the System's annual actuarially
20assumed rate of return on investment compounded annually from
21the 91st day after receipt of the bill. Payments must be
22concluded within 3 years after the employer's receipt of the
23bill.
24    This subsection (g-1) does not apply to (1) Tier 2 hybrid
25plan members and (2) Tier 2 defined benefit members who first
26participate under this Article on or after the implementation

 

 

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1date of the Optional Hybrid Plan.
2    (h) This subsection (h) applies only to payments made or
3salary increases given on or after June 1, 2005 but before July
41, 2011. The changes made by Public Act 94-1057 shall not
5require the System to refund any payments received before July
631, 2006 (the effective date of Public Act 94-1057).
7    When assessing payment for any amount due under subsection
8(g), the System shall exclude earnings increases paid to
9participants under contracts or collective bargaining
10agreements entered into, amended, or renewed before June 1,
112005.
12    When assessing payment for any amount due under subsection
13(g), the System shall exclude earnings increases paid to a
14participant at a time when the participant is 10 or more years
15from retirement eligibility under Section 15-135.
16    When assessing payment for any amount due under subsection
17(g), the System shall exclude earnings increases resulting from
18overload work, including a contract for summer teaching, or
19overtime when the employer has certified to the System, and the
20System has approved the certification, that: (i) in the case of
21overloads (A) the overload work is for the sole purpose of
22academic instruction in excess of the standard number of
23instruction hours for a full-time employee occurring during the
24academic year that the overload is paid and (B) the earnings
25increases are equal to or less than the rate of pay for
26academic instruction computed using the participant's current

 

 

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1salary rate and work schedule; and (ii) in the case of
2overtime, the overtime was necessary for the educational
3mission.
4    When assessing payment for any amount due under subsection
5(g), the System shall exclude any earnings increase resulting
6from (i) a promotion for which the employee moves from one
7classification to a higher classification under the State
8Universities Civil Service System, (ii) a promotion in academic
9rank for a tenured or tenure-track faculty position, or (iii) a
10promotion that the Illinois Community College Board has
11recommended in accordance with subsection (k) of this Section.
12These earnings increases shall be excluded only if the
13promotion is to a position that has existed and been filled by
14a member for no less than one complete academic year and the
15earnings increase as a result of the promotion is an increase
16that results in an amount no greater than the average salary
17paid for other similar positions.
18    (i) When assessing payment for any amount due under
19subsection (g), the System shall exclude any salary increase
20described in subsection (h) of this Section given on or after
21July 1, 2011 but before July 1, 2014 under a contract or
22collective bargaining agreement entered into, amended, or
23renewed on or after June 1, 2005 but before July 1, 2011.
24Notwithstanding any other provision of this Section, any
25payments made or salary increases given after June 30, 2014
26shall be used in assessing payment for any amount due under

 

 

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1subsection (g) of this Section.
2    (j) The System shall prepare a report and file copies of
3the report with the Governor and the General Assembly by
4January 1, 2007 that contains all of the following information:
5        (1) The number of recalculations required by the
6    changes made to this Section by Public Act 94-1057 for each
7    employer.
8        (2) The dollar amount by which each employer's
9    contribution to the System was changed due to
10    recalculations required by Public Act 94-1057.
11        (3) The total amount the System received from each
12    employer as a result of the changes made to this Section by
13    Public Act 94-4.
14        (4) The increase in the required State contribution
15    resulting from the changes made to this Section by Public
16    Act 94-1057.
17    (j-5) For State fiscal years beginning on or after July 1,
182017, if the amount of a participant's earnings for any State
19fiscal year exceeds the amount of the salary set by law for the
20Governor that is in effect on July 1 of that fiscal year, the
21participant's employer shall pay to the System, in addition to
22all other payments required under this Section and in
23accordance with guidelines established by the System, an amount
24determined by the System to be equal to the employer normal
25cost, as established by the System and expressed as a total
26percentage of payroll, multiplied by the amount of earnings in

 

 

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1excess of the amount of the salary set by law for the Governor.
2This amount shall be computed by the System on the basis of the
3actuarial assumptions and tables used in the most recent
4actuarial valuation of the System that is available at the time
5of the computation. The System may require the employer to
6provide any pertinent information or documentation.
7    Whenever it determines that a payment is or may be required
8under this subsection, the System shall calculate the amount of
9the payment and bill the employer for that amount. The bill
10shall specify the calculation used to determine the amount due.
11If the employer disputes the amount of the bill, it may, within
1230 days after receipt of the bill, apply to the System in
13writing for a recalculation. The application must specify in
14detail the grounds of the dispute. Upon receiving a timely
15application for recalculation, the System shall review the
16application and, if appropriate, recalculate the amount due.
17    The employer contributions required under this subsection
18may be paid in the form of a lump sum within 90 days after
19issuance of the bill. If the employer contributions are not
20paid within 90 days after issuance of the bill, then interest
21will be charged at a rate equal to the System's annual
22actuarially assumed rate of return on investment compounded
23annually from the 91st day after issuance of the bill. All
24payments must be received within 3 years after issuance of the
25bill. If the employer fails to make complete payment, including
26applicable interest, within 3 years, then the System may, after

 

 

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1giving notice to the employer, certify the delinquent amount to
2the State Comptroller, and the Comptroller shall thereupon
3deduct the certified delinquent amount from State funds payable
4to the employer and pay them instead to the System.
5    This subsection (j-5) does not apply to a participant's
6earnings to the extent an employer pays the employer normal
7cost of such earnings.
8    The changes made to this subsection (j-5) by Public Act
9100-624 this amendatory Act of the 100th General Assembly are
10intended to apply retroactively to July 6, 2017 (the effective
11date of Public Act 100-23).
12    (k) The Illinois Community College Board shall adopt rules
13for recommending lists of promotional positions submitted to
14the Board by community colleges and for reviewing the
15promotional lists on an annual basis. When recommending
16promotional lists, the Board shall consider the similarity of
17the positions submitted to those positions recognized for State
18universities by the State Universities Civil Service System.
19The Illinois Community College Board shall file a copy of its
20findings with the System. The System shall consider the
21findings of the Illinois Community College Board when making
22determinations under this Section. The System shall not exclude
23any earnings increases resulting from a promotion when the
24promotion was not submitted by a community college. Nothing in
25this subsection (k) shall require any community college to
26submit any information to the Community College Board.

 

 

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1    (l) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5    As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12    (m) For purposes of determining the required State
13contribution to the system for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the system's actuarially assumed rate of return.
16(Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17;
17100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
 
18    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
19    Sec. 16-158. Contributions by State and other employing
20units.
21    (a) The State shall make contributions to the System by
22means of appropriations from the Common School Fund and other
23State funds of amounts which, together with other employer
24contributions, employee contributions, investment income, and
25other income, will be sufficient to meet the cost of

 

 

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1maintaining and administering the System on a 90% funded basis
2in accordance with actuarial recommendations.
3    The Board shall determine the amount of State contributions
4required for each fiscal year on the basis of the actuarial
5tables and other assumptions adopted by the Board and the
6recommendations of the actuary, using the formula in subsection
7(b-3).
8    (a-1) Annually, on or before November 15 until November 15,
92011, the Board shall certify to the Governor the amount of the
10required State contribution for the coming fiscal year. The
11certification under this subsection (a-1) shall include a copy
12of the actuarial recommendations upon which it is based and
13shall specifically identify the System's projected State
14normal cost for that fiscal year.
15    On or before May 1, 2004, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2005, taking
18into account the amounts appropriated to and received by the
19System under subsection (d) of Section 7.2 of the General
20Obligation Bond Act.
21    On or before July 1, 2005, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2006, taking
24into account the changes in required State contributions made
25by Public Act 94-4.
26    On or before April 1, 2011, the Board shall recalculate and

 

 

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1recertify to the Governor the amount of the required State
2contribution to the System for State fiscal year 2011, applying
3the changes made by Public Act 96-889 to the System's assets
4and liabilities as of June 30, 2009 as though Public Act 96-889
5was approved on that date.
6    (a-5) On or before November 1 of each year, beginning
7November 1, 2012, the Board shall submit to the State Actuary,
8the Governor, and the General Assembly a proposed certification
9of the amount of the required State contribution to the System
10for the next fiscal year, along with all of the actuarial
11assumptions, calculations, and data upon which that proposed
12certification is based. On or before January 1 of each year,
13beginning January 1, 2013, the State Actuary shall issue a
14preliminary report concerning the proposed certification and
15identifying, if necessary, recommended changes in actuarial
16assumptions that the Board must consider before finalizing its
17certification of the required State contributions. On or before
18January 15, 2013 and each January 15 thereafter, the Board
19shall certify to the Governor and the General Assembly the
20amount of the required State contribution for the next fiscal
21year. The Board's certification must note any deviations from
22the State Actuary's recommended changes, the reason or reasons
23for not following the State Actuary's recommended changes, and
24the fiscal impact of not following the State Actuary's
25recommended changes on the required State contribution.
26    (a-10) By November 1, 2017, the Board shall recalculate and

 

 

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1recertify to the State Actuary, the Governor, and the General
2Assembly the amount of the State contribution to the System for
3State fiscal year 2018, taking into account the changes in
4required State contributions made by Public Act 100-23. The
5State Actuary shall review the assumptions and valuations
6underlying the Board's revised certification and issue a
7preliminary report concerning the proposed recertification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions. The Board's
11final certification must note any deviations from the State
12Actuary's recommended changes, the reason or reasons for not
13following the State Actuary's recommended changes, and the
14fiscal impact of not following the State Actuary's recommended
15changes on the required State contribution.
16    (a-15) On or after June 15, 2019, but no later than June
1730, 2019, the Board shall recalculate and recertify to the
18Governor and the General Assembly the amount of the State
19contribution to the System for State fiscal year 2019, taking
20into account the changes in required State contributions made
21by Public Act 100-587 this amendatory Act of the 100th General
22Assembly. The recalculation shall be made using assumptions
23adopted by the Board for the original fiscal year 2019
24certification. The monthly voucher for the 12th month of fiscal
25year 2019 shall be paid by the Comptroller after the
26recertification required pursuant to this subsection is

 

 

HB0350 Engrossed- 23 -LRB101 06138 RPS 51159 b

1submitted to the Governor, Comptroller, and General Assembly.
2The recertification submitted to the General Assembly shall be
3filed with the Clerk of the House of Representatives and the
4Secretary of the Senate in electronic form only, in the manner
5that the Clerk and the Secretary shall direct.
6    (b) Through State fiscal year 1995, the State contributions
7shall be paid to the System in accordance with Section 18-7 of
8the School Code.
9    (b-1) Beginning in State fiscal year 1996, on the 15th day
10of each month, or as soon thereafter as may be practicable, the
11Board shall submit vouchers for payment of State contributions
12to the System, in a total monthly amount of one-twelfth of the
13required annual State contribution certified under subsection
14(a-1). From March 5, 2004 (the effective date of Public Act
1593-665) through June 30, 2004, the Board shall not submit
16vouchers for the remainder of fiscal year 2004 in excess of the
17fiscal year 2004 certified contribution amount determined
18under this Section after taking into consideration the transfer
19to the System under subsection (a) of Section 6z-61 of the
20State Finance Act. These vouchers shall be paid by the State
21Comptroller and Treasurer by warrants drawn on the funds
22appropriated to the System for that fiscal year.
23    If in any month the amount remaining unexpended from all
24other appropriations to the System for the applicable fiscal
25year (including the appropriations to the System under Section
268.12 of the State Finance Act and Section 1 of the State

 

 

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1Pension Funds Continuing Appropriation Act) is less than the
2amount lawfully vouchered under this subsection, the
3difference shall be paid from the Common School Fund under the
4continuing appropriation authority provided in Section 1.1 of
5the State Pension Funds Continuing Appropriation Act.
6    (b-2) Allocations from the Common School Fund apportioned
7to school districts not coming under this System shall not be
8diminished or affected by the provisions of this Article.
9    (b-3) For State fiscal years 2012 through 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19    For each of State fiscal years 2018, 2019, and 2020, the
20State shall make an additional contribution to the System equal
21to 2% of the total payroll of each employee who is deemed to
22have elected the benefits under Section 1-161 or who has made
23the election under subsection (c) of Section 1-161.
24    A change in an actuarial or investment assumption that
25increases or decreases the required State contribution and
26first applies in State fiscal year 2018 or thereafter shall be

 

 

HB0350 Engrossed- 25 -LRB101 06138 RPS 51159 b

1implemented in equal annual amounts over a 5-year period
2beginning in the State fiscal year in which the actuarial
3change first applies to the required State contribution.
4    A change in an actuarial or investment assumption that
5increases or decreases the required State contribution and
6first applied to the State contribution in fiscal year 2014,
72015, 2016, or 2017 shall be implemented:
8        (i) as already applied in State fiscal years before
9    2018; and
10        (ii) in the portion of the 5-year period beginning in
11    the State fiscal year in which the actuarial change first
12    applied that occurs in State fiscal year 2018 or
13    thereafter, by calculating the change in equal annual
14    amounts over that 5-year period and then implementing it at
15    the resulting annual rate in each of the remaining fiscal
16    years in that 5-year period.
17    For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20so that by State fiscal year 2011, the State is contributing at
21the rate required under this Section; except that in the
22following specified State fiscal years, the State contribution
23to the System shall not be less than the following indicated
24percentages of the applicable employee payroll, even if the
25indicated percentage will produce a State contribution in
26excess of the amount otherwise required under this subsection

 

 

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1and subsection (a), and notwithstanding any contrary
2certification made under subsection (a-1) before May 27, 1998
3(the effective date of Public Act 90-582): 10.02% in FY 1999;
410.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
5in FY 2003; and 13.56% in FY 2004.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2006 is
8$534,627,700.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2007 is
11$738,014,500.
12    For each of State fiscal years 2008 through 2009, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15from the required State contribution for State fiscal year
162007, so that by State fiscal year 2011, the State is
17contributing at the rate otherwise required under this Section.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2010 is
20$2,089,268,000 and shall be made from the proceeds of bonds
21sold in fiscal year 2010 pursuant to Section 7.2 of the General
22Obligation Bond Act, less (i) the pro rata share of bond sale
23expenses determined by the System's share of total bond
24proceeds, (ii) any amounts received from the Common School Fund
25in fiscal year 2010, and (iii) any reduction in bond proceeds
26due to the issuance of discounted bonds, if applicable.

 

 

HB0350 Engrossed- 27 -LRB101 06138 RPS 51159 b

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2011 is
3the amount recertified by the System on or before April 1, 2011
4pursuant to subsection (a-1) of this Section and shall be made
5from the proceeds of bonds sold in fiscal year 2011 pursuant to
6Section 7.2 of the General Obligation Bond Act, less (i) the
7pro rata share of bond sale expenses determined by the System's
8share of total bond proceeds, (ii) any amounts received from
9the Common School Fund in fiscal year 2011, and (iii) any
10reduction in bond proceeds due to the issuance of discounted
11bonds, if applicable. This amount shall include, in addition to
12the amount certified by the System, an amount necessary to meet
13employer contributions required by the State as an employer
14under paragraph (e) of this Section, which may also be used by
15the System for contributions required by paragraph (a) of
16Section 16-127.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under subsection (a-1), shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

HB0350 Engrossed- 29 -LRB101 06138 RPS 51159 b

1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (b-4) Beginning in fiscal year 2018, each employer under
7this Article shall pay to the System a required contribution
8determined as a percentage of projected payroll and sufficient
9to produce an annual amount equal to:
10        (i) for each of fiscal years 2018, 2019, and 2020, the
11    defined benefit normal cost of the defined benefit plan,
12    less the employee contribution, for each employee of that
13    employer who has elected or who is deemed to have elected
14    the benefits under Section 1-161 or who has made the
15    election under subsection (b) of Section 1-161; for fiscal
16    year 2021 and each fiscal year thereafter, the defined
17    benefit normal cost of the defined benefit plan, less the
18    employee contribution, plus 2%, for each employee of that
19    employer who has elected or who is deemed to have elected
20    the benefits under Section 1-161 or who has made the
21    election under subsection (b) of Section 1-161; plus
22        (ii) the amount required for that fiscal year to
23    amortize any unfunded actuarial accrued liability
24    associated with the present value of liabilities
25    attributable to the employer's account under Section
26    16-158.3, determined as a level percentage of payroll over

 

 

HB0350 Engrossed- 30 -LRB101 06138 RPS 51159 b

1    a 30-year rolling amortization period.
2    In determining contributions required under item (i) of
3this subsection, the System shall determine an aggregate rate
4for all employers, expressed as a percentage of projected
5payroll.
6    In determining the contributions required under item (ii)
7of this subsection, the amount shall be computed by the System
8on the basis of the actuarial assumptions and tables used in
9the most recent actuarial valuation of the System that is
10available at the time of the computation.
11    The contributions required under this subsection (b-4)
12shall be paid by an employer concurrently with that employer's
13payroll payment period. The State, as the actual employer of an
14employee, shall make the required contributions under this
15subsection.
16    (c) Payment of the required State contributions and of all
17pensions, retirement annuities, death benefits, refunds, and
18other benefits granted under or assumed by this System, and all
19expenses in connection with the administration and operation
20thereof, are obligations of the State.
21    If members are paid from special trust or federal funds
22which are administered by the employing unit, whether school
23district or other unit, the employing unit shall pay to the
24System from such funds the full accruing retirement costs based
25upon that service, which, beginning July 1, 2017, shall be at a
26rate, expressed as a percentage of salary, equal to the total

 

 

HB0350 Engrossed- 31 -LRB101 06138 RPS 51159 b

1employer's normal cost, expressed as a percentage of payroll,
2as determined by the System. Employer contributions, based on
3salary paid to members from federal funds, may be forwarded by
4the distributing agency of the State of Illinois to the System
5prior to allocation, in an amount determined in accordance with
6guidelines established by such agency and the System. Any
7contribution for fiscal year 2015 collected as a result of the
8change made by Public Act 98-674 shall be considered a State
9contribution under subsection (b-3) of this Section.
10    (d) Effective July 1, 1986, any employer of a teacher as
11defined in paragraph (8) of Section 16-106 shall pay the
12employer's normal cost of benefits based upon the teacher's
13service, in addition to employee contributions, as determined
14by the System. Such employer contributions shall be forwarded
15monthly in accordance with guidelines established by the
16System.
17    However, with respect to benefits granted under Section
1816-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
19of Section 16-106, the employer's contribution shall be 12%
20(rather than 20%) of the member's highest annual salary rate
21for each year of creditable service granted, and the employer
22shall also pay the required employee contribution on behalf of
23the teacher. For the purposes of Sections 16-133.4 and
2416-133.5, a teacher as defined in paragraph (8) of Section
2516-106 who is serving in that capacity while on leave of
26absence from another employer under this Article shall not be

 

 

HB0350 Engrossed- 32 -LRB101 06138 RPS 51159 b

1considered an employee of the employer from which the teacher
2is on leave.
3    (e) Beginning July 1, 1998, every employer of a teacher
4shall pay to the System an employer contribution computed as
5follows:
6        (1) Beginning July 1, 1998 through June 30, 1999, the
7    employer contribution shall be equal to 0.3% of each
8    teacher's salary.
9        (2) Beginning July 1, 1999 and thereafter, the employer
10    contribution shall be equal to 0.58% of each teacher's
11    salary.
12The school district or other employing unit may pay these
13employer contributions out of any source of funding available
14for that purpose and shall forward the contributions to the
15System on the schedule established for the payment of member
16contributions.
17    These employer contributions are intended to offset a
18portion of the cost to the System of the increases in
19retirement benefits resulting from Public Act 90-582.
20    Each employer of teachers is entitled to a credit against
21the contributions required under this subsection (e) with
22respect to salaries paid to teachers for the period January 1,
232002 through June 30, 2003, equal to the amount paid by that
24employer under subsection (a-5) of Section 6.6 of the State
25Employees Group Insurance Act of 1971 with respect to salaries
26paid to teachers for that period.

 

 

HB0350 Engrossed- 33 -LRB101 06138 RPS 51159 b

1    The additional 1% employee contribution required under
2Section 16-152 by Public Act 90-582 is the responsibility of
3the teacher and not the teacher's employer, unless the employer
4agrees, through collective bargaining or otherwise, to make the
5contribution on behalf of the teacher.
6    If an employer is required by a contract in effect on May
71, 1998 between the employer and an employee organization to
8pay, on behalf of all its full-time employees covered by this
9Article, all mandatory employee contributions required under
10this Article, then the employer shall be excused from paying
11the employer contribution required under this subsection (e)
12for the balance of the term of that contract. The employer and
13the employee organization shall jointly certify to the System
14the existence of the contractual requirement, in such form as
15the System may prescribe. This exclusion shall cease upon the
16termination, extension, or renewal of the contract at any time
17after May 1, 1998.
18    (f) If For school years beginning on or after June 1, 2005
19and before July 1, 2018 and for salary paid to a teacher under
20a contract or collective bargaining agreement entered into,
21amended, or renewed before the effective date ofthis amendatory
22Act of the 100th General Assembly, if the amount of a teacher's
23salary for any school year used to determine final average
24salary exceeds the member's annual full-time salary rate with
25the same employer for the previous school year by more than 6%,
26the teacher's employer shall pay to the System, in addition to

 

 

HB0350 Engrossed- 34 -LRB101 06138 RPS 51159 b

1all other payments required under this Section and in
2accordance with guidelines established by the System, the
3present value of the increase in benefits resulting from the
4portion of the increase in salary that is in excess of 6%. This
5present value shall be computed by the System on the basis of
6the actuarial assumptions and tables used in the most recent
7actuarial valuation of the System that is available at the time
8of the computation. If a teacher's salary for the 2005-2006
9school year is used to determine final average salary under
10this subsection (f), then the changes made to this subsection
11(f) by Public Act 94-1057 shall apply in calculating whether
12the increase in his or her salary is in excess of 6%. For the
13purposes of this Section, change in employment under Section
1410-21.12 of the School Code on or after June 1, 2005 shall
15constitute a change in employer. The System may require the
16employer to provide any pertinent information or
17documentation. The changes made to this subsection (f) by
18Public Act 94-1111 apply without regard to whether the teacher
19was in service on or after its effective date.
20    Whenever it determines that a payment is or may be required
21under this subsection, the System shall calculate the amount of
22the payment and bill the employer for that amount. The bill
23shall specify the calculations used to determine the amount
24due. If the employer disputes the amount of the bill, it may,
25within 30 days after receipt of the bill, apply to the System
26in writing for a recalculation. The application must specify in

 

 

HB0350 Engrossed- 35 -LRB101 06138 RPS 51159 b

1detail the grounds of the dispute and, if the employer asserts
2that the calculation is subject to subsection (g) or (h) of
3this Section or that subsection (f-1) of this Section applies,
4must include an affidavit setting forth and attesting to all
5facts within the employer's knowledge that are pertinent to the
6applicability of that subsection. Upon receiving a timely
7application for recalculation, the System shall review the
8application and, if appropriate, recalculate the amount due.
9    The employer contributions required under this subsection
10(f) may be paid in the form of a lump sum within 90 days after
11receipt of the bill. If the employer contributions are not paid
12within 90 days after receipt of the bill, then interest will be
13charged at a rate equal to the System's annual actuarially
14assumed rate of return on investment compounded annually from
15the 91st day after receipt of the bill. Payments must be
16concluded within 3 years after the employer's receipt of the
17bill.
18    (f-1) (Blank). For school years beginning on or after July
191, 2018 and for salary paid to a teacher under a contract or
20collective bargaining agreement entered into, amended, or
21renewed on or after the effective date of this amendatory Act
22of the 100th General Assembly, if the amount of a teacher's
23salary for any school year used to determine final average
24salary exceeds the member's annual full-time salary rate with
25the same employer for the previous school year by more than 3%,
26then the teacher's employer shall pay to the System, in

 

 

HB0350 Engrossed- 36 -LRB101 06138 RPS 51159 b

1addition to all other payments required under this Section and
2in accordance with guidelines established by the System, the
3present value of the increase in benefits resulting from the
4portion of the increase in salary that is in excess of 3%. This
5present value shall be computed by the System on the basis of
6the actuarial assumptions and tables used in the most recent
7actuarial valuation of the System that is available at the time
8of the computation. The System may require the employer to
9provide any pertinent information or documentation.
10    Whenever it determines that a payment is or may be required
11under this subsection (f-1), the System shall calculate the
12amount of the payment and bill the employer for that amount.
13The bill shall specify the calculations used to determine the
14amount due. If the employer disputes the amount of the bill, it
15shall, within 30 days after receipt of the bill, apply to the
16System in writing for a recalculation. The application must
17specify in detail the grounds of the dispute and, if the
18employer asserts that subsection (f) of this Section applies,
19must include an affidavit setting forth and attesting to all
20facts within the employer's knowledge that are pertinent to the
21applicability of subsection (f). Upon receiving a timely
22application for recalculation, the System shall review the
23application and, if appropriate, recalculate the amount due.
24    The employer contributions required under this subsection
25(f-1) may be paid in the form of a lump sum within 90 days after
26receipt of the bill. If the employer contributions are not paid

 

 

HB0350 Engrossed- 37 -LRB101 06138 RPS 51159 b

1within 90 days after receipt of the bill, then interest shall
2be charged at a rate equal to the System's annual actuarially
3assumed rate of return on investment compounded annually from
4the 91st day after receipt of the bill. Payments must be
5concluded within 3 years after the employer's receipt of the
6bill.
7    (g) This subsection (g) applies only to payments made or
8salary increases given on or after June 1, 2005 but before July
91, 2011. The changes made by Public Act 94-1057 shall not
10require the System to refund any payments received before July
1131, 2006 (the effective date of Public Act 94-1057).
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude salary increases paid to teachers
14under contracts or collective bargaining agreements entered
15into, amended, or renewed before June 1, 2005.
16    When assessing payment for any amount due under subsection
17(f), the System shall exclude salary increases paid to a
18teacher at a time when the teacher is 10 or more years from
19retirement eligibility under Section 16-132 or 16-133.2.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude salary increases resulting from
22overload work, including summer school, when the school
23district has certified to the System, and the System has
24approved the certification, that (i) the overload work is for
25the sole purpose of classroom instruction in excess of the
26standard number of classes for a full-time teacher in a school

 

 

HB0350 Engrossed- 38 -LRB101 06138 RPS 51159 b

1district during a school year and (ii) the salary increases are
2equal to or less than the rate of pay for classroom instruction
3computed on the teacher's current salary and work schedule.
4    When assessing payment for any amount due under subsection
5(f), the System shall exclude a salary increase resulting from
6a promotion (i) for which the employee is required to hold a
7certificate or supervisory endorsement issued by the State
8Teacher Certification Board that is a different certification
9or supervisory endorsement than is required for the teacher's
10previous position and (ii) to a position that has existed and
11been filled by a member for no less than one complete academic
12year and the salary increase from the promotion is an increase
13that results in an amount no greater than the lesser of the
14average salary paid for other similar positions in the district
15requiring the same certification or the amount stipulated in
16the collective bargaining agreement for a similar position
17requiring the same certification.
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude any payment to the teacher from
20the State of Illinois or the State Board of Education over
21which the employer does not have discretion, notwithstanding
22that the payment is included in the computation of final
23average salary.
24    (h) When assessing payment for any amount due under
25subsection (f), the System shall exclude any salary increase
26described in subsection (g) of this Section given on or after

 

 

HB0350 Engrossed- 39 -LRB101 06138 RPS 51159 b

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

 

 

HB0350 Engrossed- 40 -LRB101 06138 RPS 51159 b

1all other payments required under this Section and in
2accordance with guidelines established by the System, an amount
3determined by the System to be equal to the employer normal
4cost, as established by the System and expressed as a total
5percentage of payroll, multiplied by the amount of salary in
6excess of the amount of the salary set for the Governor. This
7amount shall be computed by the System on the basis of the
8actuarial assumptions and tables used in the most recent
9actuarial valuation of the System that is available at the time
10of the computation. The System may require the employer to
11provide any pertinent information or documentation.
12    Whenever it determines that a payment is or may be required
13under this subsection, the System shall calculate the amount of
14the payment and bill the employer for that amount. The bill
15shall specify the calculations used to determine the amount
16due. If the employer disputes the amount of the bill, it may,
17within 30 days after receipt of the bill, apply to the System
18in writing for a recalculation. The application must specify in
19detail the grounds of the dispute. Upon receiving a timely
20application for recalculation, the System shall review the
21application and, if appropriate, recalculate the amount due.
22    The employer contributions required under this subsection
23may be paid in the form of a lump sum within 90 days after
24receipt of the bill. If the employer contributions are not paid
25within 90 days after receipt of the bill, then interest will be
26charged at a rate equal to the System's annual actuarially

 

 

HB0350 Engrossed- 41 -LRB101 06138 RPS 51159 b

1assumed rate of return on investment compounded annually from
2the 91st day after receipt of the bill. Payments must be
3concluded within 3 years after the employer's receipt of the
4bill.
5    (j) For purposes of determining the required State
6contribution to the System, the value of the System's assets
7shall be equal to the actuarial value of the System's assets,
8which shall be calculated as follows:
9    As of June 30, 2008, the actuarial value of the System's
10assets shall be equal to the market value of the assets as of
11that date. In determining the actuarial value of the System's
12assets for fiscal years after June 30, 2008, any actuarial
13gains or losses from investment return incurred in a fiscal
14year shall be recognized in equal annual amounts over the
155-year period following that fiscal year.
16    (k) For purposes of determining the required State
17contribution to the system for a particular year, the actuarial
18value of assets shall be assumed to earn a rate of return equal
19to the system's actuarially assumed rate of return.
20(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
21100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
228-14-18; revised 10-4-18.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.