093_HB2660ham001











                                     LRB093 04138 EFG 13533 a

 1                    AMENDMENT TO HOUSE BILL 2660

 2        AMENDMENT NO.     .  Amend House Bill 2660  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The State Finance Act is amended by adding
 5    Section 5.595 as follows:

 6        (30 ILCS 105/5.595 new)
 7        Sec. 5.595.  The Pension Contribution Fund.

 8        Section 10.  The General Obligation Bond Act  is  amended
 9    by  changing Sections 2, 8, 12, 13, and 15 and adding Section
10    7.2 as follows:

11        (30 ILCS 330/2) (from Ch. 127, par. 652)
12        Sec. 2. Authorization for Bonds.  The State  of  Illinois
13    is  authorized  to issue, sell and provide for the retirement
14    of General Obligation Bonds of the State of Illinois for  the
15    categories  and  specific  purposes  expressed  in Sections 2
16    through 8 of this Act, in the total amount of $27,658,149,369
17    $17,658,149,369 $16,908,149,369 $16,015,007,500.
18        The bonds authorized in this Section 2 and in Section  16
19    of this Act are herein called "Bonds".
20        Of  the  total amount of Bonds authorized in this Act, up
 
                            -2-      LRB093 04138 EFG 13533 a
 1    to $2,200,000,000 in aggregate original principal amount  may
 2    be  issued  and  sold  in  accordance  with the Baccalaureate
 3    Savings Act in the form of General Obligation College Savings
 4    Bonds.
 5        Of the total amount of Bonds authorized in this  Act,  up
 6    to $300,000,000 in aggregate original principal amount may be
 7    issued and sold in accordance with the Retirement Savings Act
 8    in the form of General Obligation Retirement Savings Bonds.
 9        Of  the total amount of Bonds authorized in this Act, the
10    additional $10,000,000,000 authorized by this amendatory  Act
11    of the 93rd General Assembly shall be used solely as provided
12    in Section 7.2.
13        The  issuance  and  sale of Bonds pursuant to the General
14    Obligation Bond Act is an economical and efficient method  of
15    financing  the  capital  and  general  operating needs of the
16    State.  This Act will permit the issuance of a  multi-purpose
17    General  Obligation  Bond  with  uniform  terms and features.
18    This will not only lower the cost of  registration  but  also
19    reduce  the  overall  cost  of  issuing debt by improving the
20    marketability of Illinois General Obligation Bonds.
21    (Source:  P.A.  91-39,  eff.  6-15-99;  91-53,  eff  6-30-99;
22    91-710, eff.  5-17-00;  92-13,  eff.  6-22-01;  92-596,  eff.
23    6-28-02; 92-598, eff. 6-28-02; revised 10-8-02.)

24        (30 ILCS 330/7.2 new)
25        Sec. 7.2. State pension funding.
26        (a)  The  amount  of  $10,000,000,000 is authorized to be
27    used  for  the  purpose  of  making  contributions   to   the
28    designated  retirement  systems.    For  the purposes of this
29    Section, "designated  retirement  systems"  means  the  State
30    Employees'  Retirement  System  of  Illinois;  the  Teachers'
31    Retirement  System  of  the  State  of  Illinois;  the  State
32    Universities  Retirement System; the Judges Retirement System
33    of Illinois; and the General Assembly Retirement System.
 
                            -3-      LRB093 04138 EFG 13533 a
 1        (b)  The  Pension  Contribution  Fund  is  created  as  a
 2    special fund in the State Treasury.
 3        The proceeds of the additional $10,000,000,000  of  Bonds
 4    authorized  by  this  amendatory  Act  of  the  93rd  General
 5    Assembly,  less the amounts authorized in the Bond Sale Order
 6    to  be  deposited  directly  into  the  capitalized  interest
 7    account  of  the  General  Obligation  Bond  Retirement   and
 8    Interest  Fund  or  otherwise directly paid out for bond sale
 9    expenses under Section 8, shall be deposited into the Pension
10    Contribution Fund and used as provided in this Section.
11        (c)  Of the amount of Bond proceeds first deposited  into
12    the  Pension  Contribution  Fund, there shall be reserved for
13    transfers under this  subsection  the  sum  of  $300,000,000,
14    representing   the   required   State  contributions  to  the
15    designated retirement systems for the last quarter  of  State
16    fiscal   year   2003,   plus   the   sum  of  $1,860,000,000,
17    representing  the  required  State   contributions   to   the
18    designated retirement systems for State fiscal year 2004.
19        Upon  the  deposit  of sufficient moneys into the Pension
20    Contribution  Fund,  the  Comptroller  and  Treasurer   shall
21    immediately transfer the sum of $300,000,000 from the Pension
22    Contribution Fund to the General Revenue Fund.
23        Whenever  any payment of required State contributions for
24    State fiscal year 2004 is  made  to  one  of  the  designated
25    retirement  systems,  the Comptroller and Treasurer shall, as
26    soon as practicable, transfer from the  Pension  Contribution
27    Fund  to  the  General  Revenue  Fund  an amount equal to the
28    amount of that payment to the designated  retirement  system.
29    If  the amount reserved for these transfers exceeds the total
30    amount  of  fiscal  year  2004  payments  of  required  State
31    contributions  to  the  designated  retirement  systems,  the
32    Comptroller  and  Treasurer  shall  continue  to  make   such
33    transfers based on fiscal year 2005 payments until the entire
34    amount reserved has been transferred.
 
                            -4-      LRB093 04138 EFG 13533 a
 1        (d)  All  amounts deposited into the Pension Contribution
 2    Fund, other than the amounts reserved for the transfers under
 3    subsection (c),  shall  be  appropriated  to  the  designated
 4    retirement   systems   to   reduce  their  actuarial  reserve
 5    deficiencies.   The  amount  of  the  appropriation  to  each
 6    designated retirement system shall constitute  a  portion  of
 7    the  total  appropriation  under  this subsection that is the
 8    same  as  that  retirement  system's  portion  of  the  total
 9    actuarial reserve deficiency of the systems, as most recently
10    determined by the Bureau of the Budget under Section 8.12  of
11    the State Finance Act.
12        Within  15  days after any Bond proceeds in excess of the
13    amounts initially reserved under subsection (c) are deposited
14    into the Pension Contribution Fund, the Bureau of the  Budget
15    shall  (i)  allocate  those  proceeds  among  the  designated
16    retirement   systems   in   proportion  to  their  respective
17    actuarial reserve deficiencies, as most  recently  determined
18    under Section 8.12 of the State Finance Act, and (ii) certify
19    those  allocations  to  the designated retirement systems and
20    the Comptroller.
21        Upon receiving certification of an allocation under  this
22    subsection,  a  designated  retirement system shall submit to
23    the Comptroller a voucher for the amount of  its  allocation.
24    The  voucher  shall be paid out of the amount appropriated to
25    that  designated   retirement   system   from   the   Pension
26    Contribution Fund pursuant to this subsection.

27        (30 ILCS 330/8) (from Ch. 127, par. 658)
28        Sec. 8.  Bond sale expenses; capitalized interest.
29        (a)  An amount not to exceed 0.5 percent of the principal
30    amount  of  the  proceeds  of  sale  of  each  bond  sale  is
31    authorized to be used to pay the reasonable costs of issuance
32    and  sale  of  State  of  Illinois  general  obligation bonds
33    authorized and sold pursuant to this Act.
 
                            -5-      LRB093 04138 EFG 13533 a
 1        (b)  The Bond Sale Order may provide for a portion of the
 2    proceeds of the bond sale,  representing  up  to  12  month's
 3    interest  on  the  bonds,  to  be deposited directly into the
 4    capitalized interest account of the General  Obligation  Bond
 5    Retirement and Interest Fund.
 6    (Source: P.A. 83-1490.)

 7        (30 ILCS 330/12) (from Ch. 127, par. 662)
 8        Sec. 12.  Allocation of Proceeds from Sale of Bonds.
 9        (a)  Proceeds  from  the  sale  of  Bonds,  authorized by
10    Section 3 of this Act, shall be  deposited  in  the  separate
11    fund known as the Capital Development Fund.
12        (b)  Proceeds  from  the  sale  of  Bonds,  authorized by
13    paragraph (a) of Section 4 of this Act, shall be deposited in
14    the separate fund known as the Transportation Bond, Series  A
15    Fund.
16        (c)  Proceeds  from  the  sale  of  Bonds,  authorized by
17    paragraphs (b) and (c) of Section 4 of  this  Act,  shall  be
18    deposited  in  the  separate fund known as the Transportation
19    Bond, Series B Fund.
20        (d)  Proceeds from  the  sale  of  Bonds,  authorized  by
21    Section  5  of  this  Act, shall be deposited in the separate
22    fund known as the School Construction Fund.
23        (e)  Proceeds from  the  sale  of  Bonds,  authorized  by
24    Section  6  of  this  Act, shall be deposited in the separate
25    fund known as the Anti-Pollution Fund.
26        (f)  Proceeds from  the  sale  of  Bonds,  authorized  by
27    Section  7  of  this  Act, shall be deposited in the separate
28    fund known as the Coal Development Fund.
29        (f-2)  Proceeds from the sale  of  Bonds,  authorized  by
30    Section  7.2  of this Act, shall be deposited as set forth in
31    Section 7.2.
32        (f-5)  Proceeds from the sale  of  Bonds,  authorized  by
33    Section  7.5  of this Act, shall be deposited as set forth in
 
                            -6-      LRB093 04138 EFG 13533 a
 1    Section 7.5.
 2        (g)  Proceeds from  the  sale  of  Bonds,  authorized  by
 3    Section  8  of  this  Act,  shall be deposited in the Capital
 4    Development Fund.
 5        (h)  Subsequent to the issuance  of  any  Bonds  for  the
 6    purposes  described  in Sections 2 through 8 of this Act, the
 7    Governor and the Director of the Bureau  of  the  Budget  may
 8    provide  for  the  reallocation  of  unspent proceeds of such
 9    Bonds to any other purposes authorized under said Sections of
10    this Act, subject to the limitations on  aggregate  principal
11    amounts  contained therein.  Upon any such reallocation, such
12    unspent  proceeds  shall  be  transferred  to the appropriate
13    funds as determined by reference to  paragraphs  (a)  through
14    (g) of this Section.
15    (Source: P.A. 92-596, eff. 6-28-02.)

16        (30 ILCS 330/13) (from Ch. 127, par. 663)
17        Sec. 13. Appropriation of Proceeds from Sale of Bonds.
18        (a)  At  all  times,  the proceeds from the sale of Bonds
19    issued pursuant to this Act are subject to  appropriation  by
20    the  General Assembly and, except as provided in Section 7.2,
21    may be obligated or expended only with the  written  approval
22    of the Governor, in such amounts, at such times, and for such
23    purposes  as  the  respective  State  agencies, as defined in
24    Section 1-7 of the Illinois State Auditing Act,  as  amended,
25    deem   necessary  or  desirable  for  the  specific  purposes
26    contemplated in Sections 2 through 8 of this Act.
27        (b)  Proceeds from the sale of Bonds for the  purpose  of
28    development  of coal and alternative forms of energy shall be
29    expended in such amounts and at such times as the  Department
30    of  Commerce  and  Community  Affairs,  with  the  advice and
31    recommendation of the Illinois  Coal  Development  Board  for
32    coal  development  projects, may deem necessary and desirable
33    for the specific purpose contemplated by Section  7  of  this
 
                            -7-      LRB093 04138 EFG 13533 a
 1    Act.  In  considering  the approval of projects to be funded,
 2    the Department of Commerce and Community Affairs  shall  give
 3    special  consideration  to projects designed to remove sulfur
 4    and other pollutants in the preparation  and  utilization  of
 5    coal,  and  in  the  use  and  operation  of electric utility
 6    generating plants and  industrial  facilities  which  utilize
 7    Illinois coal as their primary source of fuel.
 8        (c)  Any  monies  received  by any officer or employee of
 9    the  state  representing  a  reimbursement  of   expenditures
10    previously  paid  from general obligation bond proceeds shall
11    be deposited into the General Obligation Bond Retirement  and
12    Interest Fund authorized in Section 14 of this Act.
13    (Source: P.A. 89-445, eff. 2-7-96; 90-348, eff. 1-1-98.)

14        (30 ILCS 330/15) (from Ch. 127, par. 665)
15        Sec.   15.   Computation   of   Principal  and  Interest;
16    transfers. Transfer from General Revenue Fund.
17        (a)  Upon each delivery of Bonds authorized to be  issued
18    under  this Act, the Comptroller shall compute and certify to
19    the Treasurer the total amount of principal of, interest  on,
20    and  premium, if any, on Bonds issued that will be payable in
21    order to retire such Bonds and the amount  of  principal  of,
22    interest  on  and premium, if any, on such Bonds that will be
23    payable on each payment date according to the tenor  of  such
24    Bonds  during  the  then  current  and each succeeding fiscal
25    year.
26        On or before  the  last  day  of  each  month  the  State
27    Treasurer  and  Comptroller  shall transfer from (1) the Road
28    Fund with respect to Bonds  issued  under  paragraph  (a)  of
29    Section  4  of  this  Act  or Bonds issued for the purpose of
30    refunding such bonds, and from (2) the General Revenue  Fund,
31    with respect to all other Bonds issued under this Act, to the
32    General  Obligation  Bond  Retirement  and  Interest  Fund an
33    amount sufficient to pay the aggregate of the  principal  of,
 
                            -8-      LRB093 04138 EFG 13533 a
 1    interest  on, and premium, if any, on Bonds payable, by their
 2    terms on the next payment date divided by the number of  full
 3    calendar  months between the date of such Bonds and the first
 4    such payment date, and thereafter, divided by the  number  of
 5    months  between each succeeding payment date after the first.
 6    Such computations and transfers shall be made for each series
 7    of Bonds issued and delivered.   Interest  for  which  moneys
 8    have  already  been  deposited  into the capitalized interest
 9    account within the General  Obligation  Bond  Retirement  and
10    Interest Fund shall not be included in the calculation of the
11    amounts to be transferred under this subsection.
12        The  transfer  of monies herein and above directed is not
13    required if monies in the General Obligation Bond  Retirement
14    and  Interest  Fund  are more than the amount otherwise to be
15    transferred as herein above provided, and if the Governor  or
16    his  authorized  representative  notifies the State Treasurer
17    and Comptroller of such fact in writing.
18        (b)  After the effective date of this  Act,  the  balance
19    of,  and  monies  directed  to  be  included  in  the Capital
20    Development Bond Retirement and Interest Fund, Anti-Pollution
21    Bond  Retirement  and  Interest  Fund,  Transportation  Bond,
22    Series A Retirement and Interest Fund,  Transportation  Bond,
23    Series  B  Retirement and Interest Fund, and Coal Development
24    Bond Retirement and Interest Fund shall be transferred to and
25    deposited in  the  General  Obligation  Bond  Retirement  and
26    Interest  Fund.  This Fund shall be used to make debt service
27    payments on the State's general obligation  Bonds  heretofore
28    issued  which  are now outstanding and payable from the Funds
29    herein listed as well as on Bonds issued under this Act.
30        (c)  The unused portion of federal funds received  for  a
31    capital  facilities  project,  as  authorized by Section 3 of
32    this Act, for which monies from the Capital Development  Fund
33    have  been expended shall be deposited upon completion of the
34    project  in  the  General  Obligation  Bond  Retirement   and
 
                            -9-      LRB093 04138 EFG 13533 a
 1    Interest  Fund.  Any  federal funds received as reimbursement
 2    for  the  completed  construction  of  a  capital  facilities
 3    project, as authorized by Section 3 of this  Act,  for  which
 4    monies  from  the Capital Development Fund have been expended
 5    shall be deposited in the General Obligation Bond  Retirement
 6    and Interest Fund.
 7    (Source: P.A. 84-952.)

 8        Section  15.   The  Illinois  Pension  Code is amended by
 9    changing Sections 2-124, 2-134,  14-131,  14-135.08,  15-155,
10    15-165, 16-158, 18-131, and 18-140 as follows:

11        (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
12        Sec. 2-124.  Contributions by State.
13        (a)  The  State shall make contributions to the System by
14    appropriations  of   amounts   which,   together   with   the
15    contributions    of    participants,   interest   earned   on
16    investments,  and  other  income  will  meet  the   cost   of
17    maintaining  and  administering  the  System  on a 90% funded
18    basis in accordance with actuarial recommendations.
19        (b)  The  Board  shall  determine  the  amount  of  State
20    contributions required for each fiscal year on the  basis  of
21    the  actuarial  tables  and  other assumptions adopted by the
22    Board and the prescribed rate of interest, using the  formula
23    in subsection (c).
24        (c)  For  State  fiscal  years  2011  through  2045,  the
25    minimum  contribution  to  the System to be made by the State
26    for each fiscal year shall be an  amount  determined  by  the
27    System  to  be  sufficient  to  bring the total assets of the
28    System up to 90% of the total actuarial  liabilities  of  the
29    System by the end of State fiscal year 2045.  In making these
30    determinations,  the  required  State  contribution  shall be
31    calculated each year as a level percentage  of  payroll  over
32    the  years  remaining  to  and including fiscal year 2045 and
 
                            -10-     LRB093 04138 EFG 13533 a
 1    shall be determined under the projected unit credit actuarial
 2    cost method.
 3        For State fiscal  years  1996  through  2010,  the  State
 4    contribution to the System, as a percentage of the applicable
 5    employee   payroll,   shall  be  increased  in  equal  annual
 6    increments so that by State fiscal year 2011,  the  State  is
 7    contributing at the rate required under this Section.
 8        Beginning  in  State  fiscal year 2046, the minimum State
 9    contribution for each fiscal year shall be the amount  needed
10    to  maintain  the  total  assets  of the System at 90% of the
11    total actuarial liabilities of the System.
12        Notwithstanding any other provision of this Section,  the
13    required  State  contribution  for State fiscal year 2005 and
14    each fiscal year thereafter, as calculated under this Section
15    and certified under Section 2-134, shall not exceed an amount
16    equal to (i) the amount of the  required  State  contribution
17    that  would  have been calculated under this Section for that
18    fiscal year if the System had not received any payments under
19    subsection (d) of Section 7.2 of the General Obligation  Bond
20    Act, minus (ii) the portion of the State's total debt service
21    payments  for  that  fiscal  year on the bonds issued for the
22    purposes of that Section 7.2, as determined and certified  by
23    the  Comptroller, that is the same as the System's portion of
24    the total moneys distributed under subsection (d) of  Section
25    7.2 of the General Obligation Bond Act.
26    (Source: P.A. 88-593, eff. 8-22-94.)

27        (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
28        Sec.  2-134.  To certify required State contributions and
29    submit vouchers.
30        (a)  The Board shall certify to the Governor on or before
31    November 15 of each year the amount  of  the  required  State
32    contribution  to  the  System  for the next fiscal year.  The
33    certification  shall  include  a  copy   of   the   actuarial
 
                            -11-     LRB093 04138 EFG 13533 a
 1    recommendations upon which it is based.
 2        On or before May 1, 2004, the Board shall recalculate and
 3    recertify  to  the  Governor the amount of the required State
 4    contribution to the System for State fiscal year 2005, taking
 5    into account the amounts appropriated to and received by  the
 6    System  under  subsection  (d)  of Section 7.2 of the General
 7    Obligation Bond Act.
 8        (b)  Beginning in State fiscal year 1996, on or  as  soon
 9    as  possible after the 15th day of each month the Board shall
10    submit vouchers for payment of  State  contributions  to  the
11    System,  in  a  total  monthly  amount  of one-twelfth of the
12    required annual State contribution certified under subsection
13    (a).  These vouchers shall be paid by the  State  Comptroller
14    and  Treasurer by warrants drawn on the funds appropriated to
15    the System for that fiscal year.  If in any month the  amount
16    remaining  unexpended  from  all  other appropriations to the
17    System  for  the  applicable  fiscal  year   (including   the
18    appropriations  to the System under Section 8.12 of the State
19    Finance  Act  and  Section  1  of  the  State  Pension  Funds
20    Continuing  Appropriation  Act)  is  less  than  the   amount
21    lawfully  vouchered  under this Section, the difference shall
22    be paid from the General Revenue Fund  under  the  continuing
23    appropriation  authority provided in Section 1.1 of the State
24    Pension Funds Continuing Appropriation Act.
25        (c)  The full amount of any annual appropriation for  the
26    System  for  State  fiscal year 1995 shall be transferred and
27    made available to the System at the beginning of that  fiscal
28    year at the request of the Board.  Any excess funds remaining
29    at  the  end  of any fiscal year from appropriations shall be
30    retained by the System as  a  general  reserve  to  meet  the
31    System's accrued liabilities.
32    (Source: P.A. 88-593, eff. 8-22-94.)

33        (40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
 
                            -12-     LRB093 04138 EFG 13533 a
 1        Sec. 14-131. Contributions by State.
 2        (a)  The  State shall make contributions to the System by
 3    appropriations of amounts which, together with other employer
 4    contributions from trust, federal, and other funds,  employee
 5    contributions,  investment  income, and other income, will be
 6    sufficient to meet the cost of maintaining and  administering
 7    the System on a 90% funded basis in accordance with actuarial
 8    recommendations.
 9        For  the  purposes of this Section and Section 14-135.08,
10    references to State  contributions  refer  only  to  employer
11    contributions  and do not include employee contributions that
12    are picked up or otherwise paid by the State or a  department
13    on behalf of the employee.
14        (b)  The  Board shall determine the total amount of State
15    contributions required for each fiscal year on the  basis  of
16    the  actuarial  tables  and  other assumptions adopted by the
17    Board, using the formula in subsection (e).
18        The Board shall also determine a State contribution  rate
19    for  each  fiscal year, expressed as a percentage of payroll,
20    based on the  total  required  State  contribution  for  that
21    fiscal  year  (less  the  amount  received by the System from
22    appropriations under Section 8.12 of the  State  Finance  Act
23    and   Section   1  of  the  State  Pension  Funds  Continuing
24    Appropriation Act, if any, for the fiscal year ending on  the
25    June  30  immediately  preceding  the  applicable November 15
26    certification deadline), the estimated payroll (including all
27    forms of compensation)  for  personal  services  rendered  by
28    eligible employees, and the recommendations of the actuary.
29        For  the purposes of this Section and Section 14.1 of the
30    State Finance Act, the  term  "eligible  employees"  includes
31    employees  who  participate  in  the  System, persons who may
32    elect to participate in the System but have not  so  elected,
33    persons  who are serving a qualifying period that is required
34    for participation, and annuitants employed by a department as
 
                            -13-     LRB093 04138 EFG 13533 a
 1    described in subdivision (a)(1) or (a)(2) of Section 14-111.
 2        (c)  Contributions  shall  be   made   by   the   several
 3    departments  for  each  pay  period  by warrants drawn by the
 4    State  Comptroller  against   their   respective   funds   or
 5    appropriations  based  upon vouchers stating the amount to be
 6    so contributed.  These amounts shall be  based  on  the  full
 7    rate  certified by the Board under Section 14-135.08 for that
 8    fiscal year.
 9        (d)  If an employee is paid from trust funds  or  federal
10    funds,  the  department  or other employer shall pay employer
11    contributions from those funds to the System at the certified
12    rate, unless the terms of  the  trust  or  the  federal-State
13    agreement  preclude the use of the funds for that purpose, in
14    which case the required employer contributions shall be  paid
15    by the State.
16        (e)  For  State  fiscal  years  2011  through  2045,  the
17    minimum  contribution  to  the System to be made by the State
18    for each fiscal year shall be an  amount  determined  by  the
19    System  to  be  sufficient  to  bring the total assets of the
20    System up to 90% of the total actuarial  liabilities  of  the
21    System by the end of State fiscal year 2045.  In making these
22    determinations,  the  required  State  contribution  shall be
23    calculated each year as a level percentage  of  payroll  over
24    the  years  remaining  to  and including fiscal year 2045 and
25    shall be determined under the projected unit credit actuarial
26    cost method.
27        For State fiscal  years  1996  through  2010,  the  State
28    contribution to the System, as a percentage of the applicable
29    employee   payroll,   shall  be  increased  in  equal  annual
30    increments so that by State fiscal year 2011,  the  State  is
31    contributing  at the rate required under this Section; except
32    that (i) for State fiscal year 1998, for all purposes of this
33    Code  and  any  other  law  of  this  State,  the   certified
34    percentage of the applicable employee payroll shall be 5.052%
 
                            -14-     LRB093 04138 EFG 13533 a
 1    for  employees  earning  eligible  creditable  service  under
 2    Section   14-110   and   6.500%   for  all  other  employees,
 3    notwithstanding any contrary certification made under Section
 4    14-135.08 before the effective date of this amendatory Act of
 5    1997, and (ii) in the following specified State fiscal years,
 6    the State contribution to the System shall not be  less  than
 7    the   following   indicated  percentages  of  the  applicable
 8    employee payroll,  even  if  the  indicated  percentage  will
 9    produce   a  State  contribution  in  excess  of  the  amount
10    otherwise required under this subsection and subsection (a):
11    9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in
12    FY 2002; 10.6% in FY 2003; and 10.8% in FY 2004; 11.0% in  FY
13    2005;  11.2%  in FY 2006; 11.4% in FY 2007; 11.6% in FY 2008;
14    and 11.8% in FY 2009.
15        Beginning in State fiscal year 2046,  the  minimum  State
16    contribution  for each fiscal year shall be the amount needed
17    to maintain the total assets of the  System  at  90%  of  the
18    total actuarial liabilities of the System.
19        Notwithstanding  any other provision of this Section, the
20    required State contribution for State fiscal  year  2005  and
21    each fiscal year thereafter, as calculated under this Section
22    and  certified  under  Section 14-135.08, shall not exceed an
23    amount  equal  to  (i)  the  amount  of  the  required  State
24    contribution that  would  have  been  calculated  under  this
25    Section  for  that fiscal year if the System had not received
26    any payments under subsection  (d)  of  Section  7.2  of  the
27    General  Obligation  Bond  Act, minus (ii) the portion of the
28    State's total debt service payments for that fiscal  year  on
29    the  bonds  issued  for  the purposes of that Section 7.2, as
30    determined and certified by the Comptroller, that is the same
31    as the System's portion of the total moneys distributed under
32    subsection (d) of Section 7.2 of the General Obligation  Bond
33    Act.
34    (Source: P.A. 89-136, eff. 7-14-95; 90-65, eff. 7-7-97.)
 
                            -15-     LRB093 04138 EFG 13533 a
 1        (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
 2        Sec. 14-135.08.  To certify required State contributions.
 3    To  certify  to  the  Governor  and to each department, on or
 4    before November 15 of each year, the required rate for  State
 5    contributions  to  the System for the next State fiscal year,
 6    as determined under subsection (b) of  Section  14-131.   The
 7    certification  to  the  Governor  shall include a copy of the
 8    actuarial recommendations upon which the rate is based.
 9        On or before May 1, 2004, the Board shall recalculate and
10    recertify to the Governor and to each department  the  amount
11    of  the  required  State  contribution  to the System and the
12    required rates for State  contributions  to  the  System  for
13    State  fiscal  year  2005,  taking  into  account the amounts
14    appropriated to and received by the System  under  subsection
15    (d) of Section 7.2 of the General Obligation Bond Act.
16    (Source: P.A. 88-593, eff. 8-22-94; 89-136, eff. 7-14-95.)

17        (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
18        Sec. 15-155.  Employer contributions.
19        (a)  The  State  of  Illinois shall make contributions by
20    appropriations of amounts  which,  together  with  the  other
21    employer  contributions from trust, federal, and other funds,
22    employee contributions, income from  investments,  and  other
23    income of this System, will be sufficient to meet the cost of
24    maintaining  and  administering  the  System  on a 90% funded
25    basis in accordance with actuarial recommendations.
26        The  Board  shall   determine   the   amount   of   State
27    contributions  required  for each fiscal year on the basis of
28    the actuarial tables and other  assumptions  adopted  by  the
29    Board  and  the  recommendations  of  the  actuary, using the
30    formula in subsection (a-1).
31        (a-1)  For State fiscal  years  2011  through  2045,  the
32    minimum  contribution  to  the System to be made by the State
33    for each fiscal year shall be an  amount  determined  by  the
 
                            -16-     LRB093 04138 EFG 13533 a
 1    System  to  be  sufficient  to  bring the total assets of the
 2    System up to 90% of the total actuarial  liabilities  of  the
 3    System by the end of State fiscal year 2045.  In making these
 4    determinations,  the  required  State  contribution  shall be
 5    calculated each year as a level percentage  of  payroll  over
 6    the  years  remaining  to  and including fiscal year 2045 and
 7    shall be determined under the projected unit credit actuarial
 8    cost method.
 9        For State fiscal  years  1996  through  2010,  the  State
10    contribution to the System, as a percentage of the applicable
11    employee   payroll,   shall  be  increased  in  equal  annual
12    increments so that by State fiscal year 2011,  the  State  is
13    contributing at the rate required under this Section.
14        Beginning  in  State  fiscal year 2046, the minimum State
15    contribution for each fiscal year shall be the amount  needed
16    to  maintain  the  total  assets  of the System at 90% of the
17    total actuarial liabilities of the System.
18        Notwithstanding any other provision of this Section,  the
19    required  State  contribution  for State fiscal year 2005 and
20    each fiscal year thereafter, as calculated under this Section
21    and certified under  Section  15-165,  shall  not  exceed  an
22    amount  equal  to  (i)  the  amount  of  the  required  State
23    contribution  that  would  have  been  calculated  under this
24    Section for that fiscal year if the System had  not  received
25    any  payments  under  subsection  (d)  of  Section 7.2 of the
26    General Obligation Bond Act, minus (ii) the  portion  of  the
27    State's  total  debt service payments for that fiscal year on
28    the bonds issued for the purposes of  that  Section  7.2,  as
29    determined and certified by the Comptroller, that is the same
30    as the System's portion of the total moneys distributed under
31    subsection  (d) of Section 7.2 of the General Obligation Bond
32    Act.
33        (b)  If an employee is paid from trust or federal  funds,
34    the  employer shall pay to the Board contributions from those
 
                            -17-     LRB093 04138 EFG 13533 a
 1    funds which are sufficient to cover the accruing normal costs
 2    on behalf of the  employee.    However,  universities  having
 3    employees  who  are compensated out of local auxiliary funds,
 4    income funds, or service enterprise funds are not required to
 5    pay such contributions on behalf  of  those  employees.   The
 6    local  auxiliary  funds, income funds, and service enterprise
 7    funds of universities shall not be considered trust funds for
 8    the  purpose  of  this   Article,   but   funds   of   alumni
 9    associations,  foundations,  and  athletic associations which
10    are affiliated with the universities  included  as  employers
11    under  this  Article and other employers which do not receive
12    State appropriations are considered to be trust funds for the
13    purpose of this Article.
14        (b-1)  The City of Urbana and the City of Champaign shall
15    each make employer contributions to  this  System  for  their
16    respective  firefighter  employees  who  participate  in this
17    System pursuant to subsection (h)  of  Section  15-107.   The
18    rate  of  contributions  to  be  made by those municipalities
19    shall be determined annually by the Board on the basis of the
20    actuarial  assumptions  adopted  by   the   Board   and   the
21    recommendations  of  the actuary, and shall be expressed as a
22    percentage of salary for each such employee.  The Board shall
23    certify the rate to the affected municipalities  as  soon  as
24    may  be practical.  The employer contributions required under
25    this subsection shall be remitted by the municipality to  the
26    System  at  the  same time and in the same manner as employee
27    contributions.
28        (c)  Through State fiscal year 1995: The  total  employer
29    contribution  shall be apportioned among the various funds of
30    the State and other employers,  whether  trust,  federal,  or
31    other funds, in accordance with actuarial procedures approved
32    by  the Board.  State of Illinois contributions for employers
33    receiving State appropriations for personal services shall be
34    payable from appropriations made to the employers or  to  the
 
                            -18-     LRB093 04138 EFG 13533 a
 1    System.   The  contributions  for  Class I community colleges
 2    covering earnings  other  than  those  paid  from  trust  and
 3    federal funds, shall be payable solely from appropriations to
 4    the  Illinois  Community  College  Board  or  the  System for
 5    employer contributions.
 6        (d)  Beginning in State fiscal year  1996,  the  required
 7    State  contributions  to  the  System  shall  be appropriated
 8    directly to the System and shall be payable through  vouchers
 9    issued in accordance with subsection (c) of Section 15-165.
10        (e)  The State Comptroller shall draw warrants payable to
11    the  System upon proper certification by the System or by the
12    employer in accordance with the appropriation laws  and  this
13    Code.
14        (f)  Normal  costs under this Section means liability for
15    pensions and other  benefits  which  accrues  to  the  System
16    because  of  the  credits  earned for service rendered by the
17    participants  during  the  fiscal  year   and   expenses   of
18    administering the System, but shall not include the principal
19    of  or any redemption premium or interest on any bonds issued
20    by the Board or any expenses incurred or deposits required in
21    connection therewith.
22    (Source: P.A. 89-602, eff. 8-2-96; 90-576, eff. 3-31-98.)

23        (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
24        Sec. 15-165.  To certify amounts and submit vouchers.
25        (a)  The Board shall certify to the Governor on or before
26    November 15 of each  year  the  appropriation  required  from
27    State funds for the purposes of this System for the following
28    fiscal  year.   The certification shall include a copy of the
29    actuarial recommendations upon which it is based.
30        On or before May 1, 2004, the Board shall recalculate and
31    recertify to the Governor the amount of  the  required  State
32    contribution to the System for State fiscal year 2005, taking
33    into  account the amounts appropriated to and received by the
 
                            -19-     LRB093 04138 EFG 13533 a
 1    System under subsection (d) of Section  7.2  of  the  General
 2    Obligation Bond Act.
 3        (b)  The  Board shall certify to the State Comptroller or
 4    employer, as the case may be,  from  time  to  time,  by  its
 5    president  and secretary, with its seal attached, the amounts
 6    payable to the System from the various funds.
 7        (c)  Beginning in State fiscal year 1996, on or  as  soon
 8    as  possible after the 15th day of each month the Board shall
 9    submit vouchers for payment of  State  contributions  to  the
10    System,  in  a  total  monthly  amount  of one-twelfth of the
11    required annual State contribution certified under subsection
12    (a).  These vouchers shall be paid by the  State  Comptroller
13    and  Treasurer by warrants drawn on the funds appropriated to
14    the System for that fiscal year.
15        If in any month the amount remaining unexpended from  all
16    other  appropriations to the System for the applicable fiscal
17    year  (including  the  appropriations  to  the  System  under
18    Section 8.12 of the State Finance Act and Section  1  of  the
19    State  Pension  Funds  Continuing  Appropriation Act) is less
20    than the amount lawfully vouchered under  this  Section,  the
21    difference  shall be paid from the General Revenue Fund under
22    the continuing appropriation authority  provided  in  Section
23    1.1 of the State Pension Funds Continuing Appropriation Act.
24        (d)  So long as the payments received are the full amount
25    lawfully  vouchered  under this Section, payments received by
26    the System under this Section shall be applied  first  toward
27    the   employer   contribution   to   the   self-managed  plan
28    established  under  Section  15-158.2.   Payments  shall   be
29    applied  second  toward  the employer's portion of the normal
30    costs of the System, as defined in subsection (f) of  Section
31    15-155.   The  balance  shall  be applied toward the unfunded
32    actuarial liabilities of the System.
33        (e)  In the event that the System does not receive, as  a
34    result   of  legislative  enactment  or  otherwise,  payments
 
                            -20-     LRB093 04138 EFG 13533 a
 1    sufficient to fully fund the  employer  contribution  to  the
 2    self-managed  plan  established under Section 15-158.2 and to
 3    fully fund that portion of  the  employer's  portion  of  the
 4    normal  costs of the System, as calculated in accordance with
 5    Section 15-155(a-1), then  any  payments  received  shall  be
 6    applied  proportionately  to  the optional retirement program
 7    established under Section  15-158.2  and  to  the  employer's
 8    portion  of  the normal costs of the System, as calculated in
 9    accordance with Section 15-155(a-1).
10    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

11        (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
12        Sec. 16-158.  Contributions by State and other  employing
13    units.
14        (a)  The  State shall make contributions to the System by
15    means of appropriations from the Common School Fund and other
16    State funds of amounts which, together  with  other  employer
17    contributions, employee contributions, investment income, and
18    other  income,  will  be  sufficient  to  meet  the  cost  of
19    maintaining  and  administering  the  System  on a 90% funded
20    basis in accordance with actuarial recommendations.
21        The  Board  shall   determine   the   amount   of   State
22    contributions  required  for each fiscal year on the basis of
23    the actuarial tables and other  assumptions  adopted  by  the
24    Board  and  the  recommendations  of  the  actuary, using the
25    formula in subsection (b-3).
26        (a-1)  Annually, on or  before  November  15,  the  Board
27    shall  certify  to  the  Governor  the amount of the required
28    State  contribution  for  the  coming   fiscal   year.    The
29    certification   shall   include   a  copy  of  the  actuarial
30    recommendations upon which it is based.
31        On or before May 1, 2004, the Board shall recalculate and
32    recertify to the Governor the amount of  the  required  State
33    contribution to the System for State fiscal year 2005, taking
 
                            -21-     LRB093 04138 EFG 13533 a
 1    into  account the amounts appropriated to and received by the
 2    System under subsection (d) of Section  7.2  of  the  General
 3    Obligation Bond Act.
 4        (b)  Through   State   fiscal   year   1995,   the  State
 5    contributions shall be paid to the System in accordance  with
 6    Section 18-7 of the School Code.
 7        (b-1)  Beginning  in  State fiscal year 1996, on the 15th
 8    day  of  each  month,  or  as  soon  thereafter  as  may   be
 9    practicable,  the  Board shall submit vouchers for payment of
10    State contributions to the System, in a total monthly  amount
11    of  one-twelfth  of  the  required  annual State contribution
12    certified under subsection (a-1).  These  vouchers  shall  be
13    paid by the State Comptroller and Treasurer by warrants drawn
14    on the funds appropriated to the System for that fiscal year.
15        If  in any month the amount remaining unexpended from all
16    other appropriations to the System for the applicable  fiscal
17    year  (including  the  appropriations  to  the  System  under
18    Section  8.12  of  the State Finance Act and Section 1 of the
19    State Pension Funds Continuing  Appropriation  Act)  is  less
20    than the amount lawfully vouchered under this subsection, the
21    difference  shall  be  paid from the Common School Fund under
22    the continuing appropriation authority  provided  in  Section
23    1.1 of the State Pension Funds Continuing Appropriation Act.
24        (b-2)  Allocations    from   the   Common   School   Fund
25    apportioned to school districts not coming under this  System
26    shall not be diminished or affected by the provisions of this
27    Article.
28        (b-3)  For  State  fiscal  years  2011  through 2045, the
29    minimum contribution to the System to be made  by  the  State
30    for  each  fiscal  year  shall be an amount determined by the
31    System to be sufficient to bring  the  total  assets  of  the
32    System  up  to  90% of the total actuarial liabilities of the
33    System by the end of State fiscal year 2045.  In making these
34    determinations, the  required  State  contribution  shall  be
 
                            -22-     LRB093 04138 EFG 13533 a
 1    calculated  each  year  as a level percentage of payroll over
 2    the years remaining to and including  fiscal  year  2045  and
 3    shall be determined under the projected unit credit actuarial
 4    cost method.
 5        For  State  fiscal  years  1996  through  2010, the State
 6    contribution to the System, as a percentage of the applicable
 7    employee  payroll,  shall  be  increased  in   equal   annual
 8    increments  so  that  by State fiscal year 2011, the State is
 9    contributing at the rate required under this Section;  except
10    that in the following specified State fiscal years, the State
11    contribution  to  the  System  shall  not  be  less  than the
12    following indicated percentages of  the  applicable  employee
13    payroll,  even  if  the  indicated  percentage will produce a
14    State contribution in excess of the amount otherwise required
15    under this subsection and subsection (a), and notwithstanding
16    any contrary certification made under subsection (a-1) before
17    the effective date of this amendatory Act of 1998:  10.02% in
18    FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16%  in  FY
19    2002;  12.86% in FY 2003; and 13.56% in FY 2004; 14.25% in FY
20    2005; 14.95% in FY 2006; 15.65% in  FY  2007;  16.34%  in  FY
21    2008; 17.04% in FY 2009; and 17.74% in FY 2010.
22        Beginning  in  State  fiscal year 2046, the minimum State
23    contribution for each fiscal year shall be the amount  needed
24    to  maintain  the  total  assets  of the System at 90% of the
25    total actuarial liabilities of the System.
26        Notwithstanding any other provision of this Section,  the
27    required  State  contribution  for State fiscal year 2005 and
28    each fiscal year thereafter, as calculated under this Section
29    and certified under subsection (a-1),  shall  not  exceed  an
30    amount  equal  to  (i)  the  amount  of  the  required  State
31    contribution  that  would  have  been  calculated  under this
32    Section for that fiscal year if the System had  not  received
33    any  payments  under  subsection  (d)  of  Section 7.2 of the
34    General Obligation Bond Act, minus (ii) the  portion  of  the
 
                            -23-     LRB093 04138 EFG 13533 a
 1    State's  total  debt service payments for that fiscal year on
 2    the bonds issued for the purposes of  that  Section  7.2,  as
 3    determined and certified by the Comptroller, that is the same
 4    as the System's portion of the total moneys distributed under
 5    subsection  (d) of Section 7.2 of the General Obligation Bond
 6    Act.
 7        (c)  Payment of the required State contributions  and  of
 8    all  pensions, retirement annuities, death benefits, refunds,
 9    and other benefits granted under or assumed by  this  System,
10    and  all  expenses  in connection with the administration and
11    operation thereof, are obligations of the State.
12        If members are paid from special trust or  federal  funds
13    which  are administered by the employing unit, whether school
14    district or other unit, the employing unit shall pay  to  the
15    System  from  such  funds  the full accruing retirement costs
16    based  upon  that  service,  as  determined  by  the  System.
17    Employer contributions, based on salary paid to members  from
18    federal funds, may be forwarded by the distributing agency of
19    the  State  of Illinois to the System prior to allocation, in
20    an  amount   determined   in   accordance   with   guidelines
21    established by such agency and the System.
22        (d)  Effective July 1, 1986, any employer of a teacher as
23    defined  in  paragraph  (8)  of  Section 16-106 shall pay the
24    employer's normal cost of benefits based upon  the  teacher's
25    service, in addition to employee contributions, as determined
26    by   the   System.   Such  employer  contributions  shall  be
27    forwarded monthly in accordance with  guidelines  established
28    by the System.
29        However,  with  respect to benefits granted under Section
30    16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
31    of Section 16-106, the employer's contribution shall  be  12%
32    (rather  than 20%) of the member's highest annual salary rate
33    for each year of creditable service granted, and the employer
34    shall also pay the required employee contribution  on  behalf
 
                            -24-     LRB093 04138 EFG 13533 a
 1    of  the  teacher.   For the purposes of Sections 16-133.4 and
 2    16-133.5, a teacher as defined in paragraph  (8)  of  Section
 3    16-106  who  is  serving  in  that capacity while on leave of
 4    absence from another employer under this Article shall not be
 5    considered an employee of the employer from which the teacher
 6    is on leave.
 7        (e)  Beginning July 1, 1998, every employer of a  teacher
 8    shall  pay to the System an employer contribution computed as
 9    follows:
10             (1)  Beginning July 1, 1998 through June  30,  1999,
11        the  employer contribution shall be equal to 0.3% of each
12        teacher's salary.
13             (2)  Beginning July  1,  1999  and  thereafter,  the
14        employer  contribution  shall  be  equal to 0.58% of each
15        teacher's salary.
16    The school district or other employing  unit  may  pay  these
17    employer contributions out of any source of funding available
18    for  that  purpose and shall forward the contributions to the
19    System on the schedule established for the payment of  member
20    contributions.
21        These  employer  contributions  are  intended to offset a
22    portion of the  cost  to  the  System  of  the  increases  in
23    retirement  benefits  resulting  from  this amendatory Act of
24    1998.
25        Each employer of teachers is entitled to a credit against
26    the contributions required under  this  subsection  (e)  with
27    respect  to  salaries paid to teachers for the period January
28    1, 2002 through June 30, 2003, equal to the  amount  paid  by
29    that  employer  under  subsection (a-5) of Section 6.6 of the
30    State Employees Group Insurance Act of 1971 with  respect  to
31    salaries paid to teachers for that period.
32        The  additional  1%  employee contribution required under
33    Section  16-152  by  this  amendatory  Act  of  1998  is  the
34    responsibility of the teacher and not the teacher's employer,
 
                            -25-     LRB093 04138 EFG 13533 a
 1    unless the employer agrees, through collective bargaining  or
 2    otherwise, to make the contribution on behalf of the teacher.
 3        If an employer is required by a contract in effect on May
 4    1,  1998 between the employer and an employee organization to
 5    pay, on behalf of all its full-time employees covered by this
 6    Article, all mandatory employee contributions required  under
 7    this  Article, then the employer shall be excused from paying
 8    the employer contribution required under this subsection  (e)
 9    for  the  balance of the term of that contract.  The employer
10    and the employee organization shall jointly  certify  to  the
11    System  the existence of the contractual requirement, in such
12    form as the System may prescribe.  This exclusion shall cease
13    upon the termination, extension, or renewal of  the  contract
14    at any time after May 1, 1998.
15    (Source: P.A. 92-505, eff. 12-20-01.)

16        (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
17        Sec. 18-131.  Financing; employer contributions.
18        (a)  The  State  of  Illinois shall make contributions to
19    this System by appropriations of the amounts which,  together
20    with  the  contributions  of  participants,  net  earnings on
21    investments,  and  other  income,  will  meet  the  costs  of
22    maintaining and administering this System  on  a  90%  funded
23    basis in accordance with actuarial recommendations.
24        (b)  The  Board  shall  determine  the  amount  of  State
25    contributions  required  for each fiscal year on the basis of
26    the actuarial tables and other  assumptions  adopted  by  the
27    Board  and the prescribed rate of interest, using the formula
28    in subsection (c).
29        (c)  For  State  fiscal  years  2011  through  2045,  the
30    minimum contribution to the System to be made  by  the  State
31    for  each  fiscal  year  shall be an amount determined by the
32    System to be sufficient to bring  the  total  assets  of  the
33    System  up  to  90% of the total actuarial liabilities of the
 
                            -26-     LRB093 04138 EFG 13533 a
 1    System by the end of State fiscal year 2045.  In making these
 2    determinations, the  required  State  contribution  shall  be
 3    calculated  each  year  as a level percentage of payroll over
 4    the years remaining to and including  fiscal  year  2045  and
 5    shall be determined under the projected unit credit actuarial
 6    cost method.
 7        For  State  fiscal  years  1996  through  2010, the State
 8    contribution to the System, as a percentage of the applicable
 9    employee  payroll,  shall  be  increased  in   equal   annual
10    increments  so  that  by State fiscal year 2011, the State is
11    contributing at the rate required under this Section.
12        Beginning in State fiscal year 2046,  the  minimum  State
13    contribution  for each fiscal year shall be the amount needed
14    to maintain the total assets of the  System  at  90%  of  the
15    total actuarial liabilities of the System.
16        Notwithstanding  any other provision of this Section, the
17    required State contribution for State fiscal  year  2005  and
18    each fiscal year thereafter, as calculated under this Section
19    and  certified  under  Section  18-140,  shall  not exceed an
20    amount  equal  to  (i)  the  amount  of  the  required  State
21    contribution that  would  have  been  calculated  under  this
22    Section  for  that fiscal year if the System had not received
23    any payments under subsection  (d)  of  Section  7.2  of  the
24    General  Obligation  Bond  Act, minus (ii) the portion of the
25    State's total debt service payments for that fiscal  year  on
26    the  bonds  issued  for  the purposes of that Section 7.2, as
27    determined and certified by the Comptroller, that is the same
28    as the System's portion of the total moneys distributed under
29    subsection (d) of Section 7.2 of the General Obligation  Bond
30    Act.
31    (Source: P.A. 88-593, eff. 8-22-94.)

32        (40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140)
33        Sec. 18-140.  To certify required State contributions and
 
                            -27-     LRB093 04138 EFG 13533 a
 1    submit vouchers.
 2        (a)  The  Board  shall  certify  to  the  Governor, on or
 3    before November 15 of each year, the amount of  the  required
 4    State  contribution  to  the  System for the following fiscal
 5    year.   The  certification  shall  include  a  copy  of   the
 6    actuarial recommendations upon which it is based.
 7        On or before May 1, 2004, the Board shall recalculate and
 8    recertify  to  the  Governor the amount of the required State
 9    contribution to the System for State fiscal year 2005, taking
10    into account the amounts appropriated to and received by  the
11    System  under  subsection  (d)  of Section 7.2 of the General
12    Obligation Bond Act.
13        (b)  Beginning in State fiscal year 1996, on or  as  soon
14    as  possible after the 15th day of each month the Board shall
15    submit vouchers for payment of  State  contributions  to  the
16    System,  in  a  total  monthly  amount  of one-twelfth of the
17    required annual State contribution certified under subsection
18    (a).  These vouchers shall be paid by the  State  Comptroller
19    and  Treasurer by warrants drawn on the funds appropriated to
20    the System for that fiscal year.
21        If in any month the amount remaining unexpended from  all
22    other  appropriations to the System for the applicable fiscal
23    year  (including  the  appropriations  to  the  System  under
24    Section 8.12 of the State Finance Act and Section  1  of  the
25    State  Pension  Funds  Continuing  Appropriation Act) is less
26    than the amount lawfully vouchered under  this  Section,  the
27    difference  shall be paid from the General Revenue Fund under
28    the continuing appropriation authority  provided  in  Section
29    1.1 of the State Pension Funds Continuing Appropriation Act.
30    (Source: P.A. 88-593, eff. 8-22-94.)

31        Section  99.  Effective date.  This Act takes effect upon
32    becoming law.".