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1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The General Obligation Bond Act is amended by
5 changing Sections 2, 2.5, 7.2, 9 and 11 as follows:
 
6     (30 ILCS 330/2)  (from Ch. 127, par. 652)
7     Sec. 2. Authorization for Bonds. The State of Illinois is
8 authorized to issue, sell and provide for the retirement of
9 General Obligation Bonds of the State of Illinois for the
10 categories and specific purposes expressed in Sections 2
11 through 8 of this Act, in the total amount of $43,658,149,369
12 $27,658,149,369.
13     The bonds authorized in this Section 2 and in Section 16 of
14 this Act are herein called "Bonds".
15     Of the total amount of Bonds authorized in this Act, up to
16 $2,200,000,000 in aggregate original principal amount may be
17 issued and sold in accordance with the Baccalaureate Savings
18 Act in the form of General Obligation College Savings Bonds.
19     Of the total amount of Bonds authorized in this Act, up to
20 $300,000,000 in aggregate original principal amount may be
21 issued and sold in accordance with the Retirement Savings Act
22 in the form of General Obligation Retirement Savings Bonds.
23     Of the total amount of Bonds authorized in this Act, the

 

 

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1 additional $10,000,000,000 authorized by Public Act 93-2 and
2 the $16,000,000,000 authorized by this amendatory Act of the
3 95th General Assembly this amendatory Act of the 93rd General
4 Assembly shall be issued and used solely as provided in Section
5 7.2.
6     The issuance and sale of Bonds pursuant to the General
7 Obligation Bond Act is an economical and efficient method of
8 financing the long-term capital needs of the State. This Act
9 will permit the issuance of a multi-purpose General Obligation
10 Bond with uniform terms and features. This will not only lower
11 the cost of registration but also reduce the overall cost of
12 issuing debt by improving the marketability of Illinois General
13 Obligation Bonds.
14 (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02;
15 92-598, eff. 6-28-02; 93-2, eff. 4-7-03; 93-839, eff. 7-30-04.)
 
16     (30 ILCS 330/2.5)
17     Sec. 2.5. Limitation on issuance of Bonds.
18     (a) Except as provided in subsection (b), no Bonds may be
19 issued if, after the issuance, in the next State fiscal year
20 after the issuance of the Bonds, the amount of debt service
21 (including principal, whether payable at maturity or pursuant
22 to mandatory sinking fund installments, and interest) on all
23 then-outstanding Bonds, other than Bonds issued pursuant to
24 Section 7.2 of this Act, would exceed 7% of the aggregate
25 appropriations from the general funds (which consist of the

 

 

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1 General Revenue Fund, the Common School Fund, the General
2 Revenue Common School Special Account Fund, and the Education
3 Assistance Fund) and the Road Fund for the fiscal year
4 immediately prior to the fiscal year of the issuance.
5     (b) If the Comptroller and Treasurer each consent in
6 writing, Bonds may be issued even if the issuance does not
7 comply with subsection (a).
8 (Source: P.A. 93-839, eff. 7-30-04.)
 
9     (30 ILCS 330/7.2)
10     Sec. 7.2. State pension funding.
11     (a) The amount of $10,000,000,000 is authorized to be used
12 for the purpose of making contributions to the designated
13 retirement systems. For the purposes of this Section,
14 "designated retirement systems" means the State Employees'
15 Retirement System of Illinois; the Teachers' Retirement System
16 of the State of Illinois; the State Universities Retirement
17 System; the Judges Retirement System of Illinois; and the
18 General Assembly Retirement System.
19     The amount of $16,000,000,000 of Bonds authorized by this
20 amendatory Act of the 95th General Assembly is authorized to be
21 used for the purpose of making contributions to the designated
22 retirement systems.
23     (b) The Pension Contribution Fund is created as a special
24 fund in the State Treasury.
25     The proceeds of the additional $10,000,000,000 of Bonds

 

 

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1 authorized by this amendatory Act of the 93rd General Assembly,
2 less the amounts authorized in the Bond Sale Order to be
3 deposited directly into the capitalized interest account of the
4 General Obligation Bond Retirement and Interest Fund or
5 otherwise directly paid out for bond sale expenses under
6 Section 8, shall be deposited into the Pension Contribution
7 Fund and used as provided in this Section.
8     The proceeds of the additional $16,000,000,000 of bonds
9 authorized by this amendatory Act of the 95th General Assembly,
10 less the amounts directly paid out for bond sale expenses under
11 Section 8, shall be deposited into the Pension Contribution
12 Fund and used as provided in this Section, provided that at the
13 request of the Illinois State Board of Investments or the
14 affected state pension system established under Article 15 or
15 16 of the Illinois Pension Code, all or a portion of such
16 proceeds may be used by the Governor's Office of Management and
17 Budget to purchase an investment contract or other investment
18 assets, which shall be transferred to the affected pension
19 systems. The investment contract or other investment asset
20 shall be in an amount specified by the Illinois State Board of
21 Investments or state pension system, provide for a guaranteed
22 minimum interest rate, be with an issuer satisfactory to the
23 Illinois State Board of Investments or state pension system,
24 and have a credit rating of A3 or higher from Moody's Investor
25 Services or A- or higher from Standard & Poor's.
26     (c) Of the amount of Bond proceeds from the bond sale

 

 

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1 authorized by Public Act 93-2 first deposited into the Pension
2 Contribution Fund, there shall be reserved for transfers under
3 this subsection the sum of $300,000,000, representing the
4 required State contributions to the designated retirement
5 systems for the last quarter of State fiscal year 2003, plus
6 the sum of $1,860,000,000, representing the required State
7 contributions to the designated retirement systems for State
8 fiscal year 2004.
9     Upon the deposit of sufficient moneys from the bond sale
10 authorized by Public Act 93-2 into the Pension Contribution
11 Fund, the Comptroller and Treasurer shall immediately transfer
12 the sum of $300,000,000 from the Pension Contribution Fund to
13 the General Revenue Fund.
14     Whenever any payment of required State contributions for
15 State fiscal year 2004 is made to one of the designated
16 retirement systems, the Comptroller and Treasurer shall, as
17 soon as practicable, transfer from the Pension Contribution
18 Fund to the General Revenue Fund an amount equal to the amount
19 of that payment to the designated retirement system. Beginning
20 on the effective date of this amendatory Act of the 93rd
21 General Assembly, the transfers from the Pension Contribution
22 Fund to the General Revenue Fund shall be suspended until June
23 30, 2004, and the remaining balance in the Pension Contribution
24 Fund shall be transferred directly to the designated retirement
25 systems as provided in Section 6z-61 of the State Finance Act.
26 On and after July 1, 2004, in the event that any amount is on

 

 

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1 deposit in the Pension Contribution Fund from time to time, the
2 Comptroller and Treasurer shall continue to make such transfers
3 based on fiscal year 2005 payments until the entire amount on
4 deposit has been transferred.
5     (d) All amounts deposited into the Pension Contribution
6 Fund, other than the amounts reserved for the transfers under
7 subsection (c), shall be appropriated to the designated
8 retirement systems to reduce their actuarial reserve
9 deficiencies. The amount of the appropriation to each
10 designated retirement system shall constitute a portion of the
11 total appropriation under this subsection that is the same as
12 that retirement system's portion of the total actuarial reserve
13 deficiency of the systems, as most recently determined by the
14 Governor's Office of Management and Budget under Section 8.12
15 of the State Finance Act.
16     Within 15 days after any Bond proceeds in excess of the
17 amounts initially reserved under subsection (c) from the bond
18 sale authorized by Public Act 93-2 are deposited into the
19 Pension Contribution Fund, the Governor's Office of Management
20 and Budget shall (i) allocate those proceeds among the
21 designated retirement systems in proportion to their
22 respective actuarial reserve deficiencies, as most recently
23 determined under Section 8.12 of the State Finance Act, and
24 (ii) certify those allocations to the designated retirement
25 systems and the Comptroller.
26     Upon receiving certification of an allocation under this

 

 

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1 subsection, a designated retirement system shall submit to the
2 Comptroller a voucher for the amount of its allocation. The
3 voucher shall be paid out of the amount appropriated to that
4 designated retirement system from the Pension Contribution
5 Fund pursuant to this subsection.
6 (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)
 
7     (30 ILCS 330/9)  (from Ch. 127, par. 659)
8     Sec. 9. Conditions for Issuance and Sale of Bonds -
9 Requirements for Bonds.
10     (a) Except as otherwise provided in this subsection, Bonds
11 shall be issued and sold from time to time, in one or more
12 series, in such amounts and at such prices as may be directed
13 by the Governor, upon recommendation by the Director of the
14 Governor's Office of Management and Budget. Bonds shall be in
15 such form (either coupon, registered or book entry), in such
16 denominations, payable within 25 years from their date, subject
17 to such terms of redemption with or without premium, bear
18 interest payable at such times and at such fixed or variable
19 rate or rates, and be dated as shall be fixed and determined by
20 the Director of the Governor's Office of Management and Budget
21 in the order authorizing the issuance and sale of any series of
22 Bonds, which order shall be approved by the Governor and is
23 herein called a "Bond Sale Order"; provided however, that
24 interest payable at fixed or variable rates shall not exceed
25 that permitted in the Bond Authorization Act, as now or

 

 

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1 hereafter amended, and provided further that Bonds authorized
2 by this amendatory Act of the 95th General Assembly, issued at
3 a fixed rate, shall bear interest at an interest rate or
4 interest rates not to exceed 5.95%. Bonds shall be payable at
5 such place or places, within or without the State of Illinois,
6 and may be made registrable as to either principal or as to
7 both principal and interest, as shall be specified in the Bond
8 Sale Order. Bonds may be callable or subject to purchase and
9 retirement or tender and remarketing as fixed and determined in
10 the Bond Sale Order. Bonds must be issued with principal or
11 mandatory redemption amounts in equal amounts, with the first
12 maturity issued occurring within the fiscal year in which the
13 Bonds are issued or within the next succeeding fiscal year,
14 with Bonds issued maturing or subject to mandatory redemption
15 each fiscal year thereafter up to 25 years. Notwithstanding
16 anything in this Act to the contrary, the term of the Bonds
17 authorized by this amendatory Act of the 95th General Assembly
18 may not exceed 30 years from issuance, with payment of
19 principal beginning in the first State fiscal year following
20 the fiscal year of issuance and, to the extent so determined
21 and specified in the Bond Sale Order, including periodic
22 increases in principal payments, whether at maturity or upon
23 mandatory redemption thereafter, provided that such Bonds
24 maturing more than one year from the date of issuance shall not
25 be payable on a single date in a fixed amount.
26     In the case of any series of Bonds bearing interest at a

 

 

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1 variable interest rate ("Variable Rate Bonds"), in lieu of
2 determining the rate or rates at which such series of Variable
3 Rate Bonds shall bear interest and the price or prices at which
4 such Variable Rate Bonds shall be initially sold or remarketed
5 (in the event of purchase and subsequent resale), the Bond Sale
6 Order may provide that such interest rates and prices may vary
7 from time to time depending on criteria established in such
8 Bond Sale Order, which criteria may include, without
9 limitation, references to indices or variations in interest
10 rates as may, in the judgment of a remarketing agent, be
11 necessary to cause Variable Rate Bonds of such series to be
12 remarketable from time to time at a price equal to their
13 principal amount, and may provide for appointment of a bank,
14 trust company, investment bank, or other financial institution
15 to serve as remarketing agent in that connection. The Bond Sale
16 Order may provide that alternative interest rates or provisions
17 for establishing alternative interest rates, different
18 security or claim priorities, or different call or amortization
19 provisions will apply during such times as Variable Rate Bonds
20 of any series are held by a person providing credit or
21 liquidity enhancement arrangements for such Bonds as
22 authorized in subsection (b) of this Section. The Bond Sale
23 Order, other than for those bonds authorized pursuant to this
24 amendatory Act of the 95th General Assembly, may also provide
25 for such variable interest rates to be established pursuant to
26 a process generally known as an auction rate process and may

 

 

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1 provide for appointment of one or more financial institutions
2 to serve as auction agents and broker-dealers in connection
3 with the establishment of such interest rates and the sale and
4 remarketing of such Bonds.
5     (b) In connection with the issuance of any series of Bonds,
6 the State may enter into arrangements to provide additional
7 security and liquidity for such Bonds, including, without
8 limitation, bond or interest rate insurance or letters of
9 credit, lines of credit, bond purchase contracts, or other
10 arrangements whereby funds are made available to retire or
11 purchase Bonds, thereby assuring the ability of owners of the
12 Bonds to sell or redeem their Bonds. The State may enter into
13 contracts and may agree to pay fees to persons providing such
14 arrangements, but only under circumstances where the Director
15 of the Governor's Office of Management and Budget certifies
16 that he or she reasonably expects the total interest paid or to
17 be paid on the Bonds, together with the fees for the
18 arrangements (being treated as if interest), would not, taken
19 together, cause the Bonds to bear interest, calculated to their
20 stated maturity, at a rate in excess of the rate that the Bonds
21 would bear in the absence of such arrangements.
22     The State may, with respect to Bonds issued or anticipated
23 to be issued, participate in and enter into arrangements with
24 respect to interest rate protection or exchange agreements,
25 guarantees, or financial futures contracts for the purpose of
26 limiting, reducing, or managing interest rate exposure. The

 

 

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1 authority granted under this paragraph, however, shall not
2 increase the principal amount of Bonds authorized to be issued
3 by law. The arrangements may be executed and delivered by the
4 Director of the Governor's Office of Management and Budget on
5 behalf of the State. Net payments for such arrangements shall
6 constitute interest on the Bonds and shall be paid from the
7 General Obligation Bond Retirement and Interest Fund. The
8 Director of the Governor's Office of Management and Budget
9 shall at least annually certify to the Governor and the State
10 Comptroller his or her estimate of the amounts of such net
11 payments to be included in the calculation of interest required
12 to be paid by the State.
13     (c) Prior to the issuance of any Variable Rate Bonds
14 pursuant to subsection (a), the Director of the Governor's
15 Office of Management and Budget shall adopt an interest rate
16 risk management policy providing that the amount of the State's
17 variable rate exposure with respect to Bonds shall not exceed
18 20%. This policy shall remain in effect while any Bonds are
19 outstanding and the issuance of Bonds shall be subject to the
20 terms of such policy. The terms of this policy may be amended
21 from time to time by the Director of the Governor's Office of
22 Management and Budget but in no event shall any amendment cause
23 the permitted level of the State's variable rate exposure with
24 respect to Bonds to exceed 20%.
25 (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666,
26 eff. 3-5-04; 93-839, eff. 7-30-04.)
 

 

 

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1     (30 ILCS 330/11)  (from Ch. 127, par. 661)
2     Sec. 11. Sale of Bonds. Except as otherwise provided in
3 this Section, Bonds shall be sold from time to time pursuant to
4 notice of sale and public bid or by negotiated sale in such
5 amounts and at such times as is directed by the Governor, upon
6 recommendation by the Director of the Governor's Office of
7 Management and Budget. At least 25%, based on total principal
8 amount, of all Bonds issued each fiscal year shall be sold
9 pursuant to notice of sale and public bid. At all times during
10 each fiscal year, no more than 75%, based on total principal
11 amount, of the Bonds issued each fiscal year, shall have been
12 sold by negotiated sale. Failure to satisfy the requirements in
13 the preceding 2 sentences shall not affect the validity of any
14 previously issued Bonds. All Bonds issued pursuant to the
15 authorization contained in this amendatory Act of the 95th
16 General Assembly may be sold by negotiated sale. The principal
17 amount of Bonds issued pursuant to the authorization contained
18 in this amendatory Act of the 95th General Assembly shall not
19 be included in determining compliance for any fiscal year with
20 the requirements of the second and third sentences of this
21 paragraph.
22     If any Bonds, including refunding Bonds, are to be sold by
23 negotiated sale, the Director of the Governor's Office of
24 Management and Budget shall comply with the competitive request
25 for proposal process set forth in the Illinois Procurement Code

 

 

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1 and all other applicable requirements of that Code.
2     If Bonds are to be sold pursuant to notice of sale and
3 public bid, the Director of the Governor's Office of Management
4 and Budget shall, from time to time, as Bonds are to be sold,
5 advertise the sale of the Bonds in at least 2 daily newspapers,
6 one of which is published in the City of Springfield and one in
7 the City of Chicago. The sale of the Bonds shall also be
8 advertised in the volume of the Illinois Procurement Bulletin
9 that is published by the Department of Central Management
10 Services. Each of the advertisements for proposals shall be
11 published once at least 10 days prior to the date fixed for the
12 opening of the bids. The Director of the Governor's Office of
13 Management and Budget may reschedule the date of sale upon the
14 giving of such additional notice as the Director deems adequate
15 to inform prospective bidders of such change; provided,
16 however, that all other conditions of the sale shall continue
17 as originally advertised.
18     Executed Bonds shall, upon payment therefor, be delivered
19 to the purchaser, and the proceeds of Bonds shall be paid into
20 the State Treasury as directed by Section 12 of this Act.
21 (Source: P.A. 93-839, eff. 7-30-04.)
 
22     Section 10. The Illinois Pension Code is amended by
23 changing Sections 2-124, 2-134, 14-131, 14-135.08, 15-155,
24 15-156, 15-157, 15-165, 16-158, 18-131, and 18-140 as follows:
 

 

 

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1     (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
2     Sec. 2-124. Contributions by State.
3     (a) The State shall make contributions to the System by
4 appropriations of amounts which, together with the
5 contributions of participants, interest earned on investments,
6 and other income will meet the cost of maintaining and
7 administering the System on a 90% funded basis in accordance
8 with actuarial recommendations.
9     (b) The Board shall determine the amount of State
10 contributions required for each fiscal year on the basis of the
11 actuarial tables and other assumptions adopted by the Board and
12 the prescribed rate of interest, using the formula in
13 subsection (c).
14     (c) Except as otherwise provided in this Section, the For
15 State fiscal years 2011 through 2045, the minimum contribution
16 to the System to be made by the State for each fiscal year
17 shall be an amount determined by the System to be sufficient to
18 bring the total assets of the System up to 90% of the total
19 actuarial liabilities of the System by the end of State fiscal
20 year 2034, as 2045. In making these determinations, the
21 required State contribution shall be calculated each year as a
22 level percentage of payroll over the years remaining to and
23 including fiscal year 2045 and shall be determined under the
24 projected unit credit actuarial cost method.
25     For State fiscal years 1996 through 2005, the State
26 contribution to the System, as a percentage of the applicable

 

 

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1 employee payroll, shall be increased in equal annual increments
2 so that by State fiscal year 2011, the State is contributing at
3 the rate required under this Section.
4     Notwithstanding any other provision of this Article, the
5 total required State contribution for State fiscal year 2006 is
6 $4,157,000.
7     Notwithstanding any other provision of this Article, the
8 total required State contribution for State fiscal year 2007 is
9 $5,220,300.
10     Notwithstanding any other provision of this Article, the
11 total required State contribution for State fiscal year 2009 is
12 $7,653,000, less that percentage of estimated fiscal year 2009
13 debt service payable on bonds authorized by this amendatory Act
14 of the 95th General Assembly that is attributable to the
15 percentage of bond proceeds received by the System.
16     For each of State fiscal years 2010 2008 through 2038 2010,
17 the State contribution to the System, as a percentage of the
18 applicable employee payroll, shall be increased in an equal
19 annual amount equal to the increase from the required State
20 contribution from the preceding fiscal year, and this increase
21 shall be increased by 3% each year increments from the required
22 State contribution for State fiscal year 2007, so that by State
23 fiscal year 2038 2011, the State is contributing at the rate
24 otherwise required under this Section. If in any year this
25 specified payment, when actuarially projected forward, should
26 not be sufficient to achieve 90% funding by 2038, then that

 

 

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1 year's contribution shall be the amount necessary when taken as
2 a level dollar increase, increased by 3% each year, to achieve
3 90% funding by 2038.
4     Beginning in State fiscal year 2039 or the fiscal year
5 following that fiscal year during which 90% funding is
6 achieved, the minimum State contribution for each fiscal year
7 shall be the amount determined by the System to be sufficient
8 to accumulate total System assets equal to 90% of the total
9 actuarial liabilities of the System over 30 years. In making
10 these determinations, the required State contribution shall be
11 calculated each year as a level percentage of employee payroll
12 over 30 years and shall be determined under the project unit
13 credit actuarial cost method. 2046, the minimum State
14 contribution for each fiscal year shall be the amount needed to
15 maintain the total assets of the System at 90% of the total
16 actuarial liabilities of the System.
17     Amounts received by the System pursuant to Section 25 of
18 the Budget Stabilization Act in any fiscal year do not reduce
19 and do not constitute payment of any portion of the minimum
20 State contribution required under this Article in that fiscal
21 year. Such amounts shall not reduce, and shall not be included
22 in the calculation of, the required State contributions under
23 this Article in any future year until the System has reached a
24 funding ratio of at least 90%. A reference in this Article to
25 the "required State contribution" or any substantially similar
26 term does not include or apply to any amounts payable to the

 

 

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1 System under Section 25 of the Budget Stabilization Act.
2     Notwithstanding any other provision of this Section, the
3 required State contribution for State fiscal year 2005 and for
4 fiscal year 2008 and for fiscal year 2010 and each fiscal year
5 thereafter, as calculated under this Section and certified
6 under Section 2-134, shall not exceed an amount equal to (i)
7 the amount of the required State contribution that would have
8 been calculated under this Section for that fiscal year if the
9 System had not received any payments under subsection (d) of
10 Section 7.2 of the General Obligation Bond Act, minus (ii) the
11 portion of the State's total debt service payments for that
12 fiscal year on the bonds issued for the purposes of that
13 Section 7.2, as determined and certified by the Comptroller,
14 that is the same as the System's portion of the total moneys
15 distributed under subsection (d) of Section 7.2 of the General
16 Obligation Bond Act.
17     (d) Notwithstanding this Code or any other law to the
18 contrary, the Board must ensure that at least 19% of the
19 proceeds from the issuance of general obligation bonds under
20 the General Obligation Bond Act authorized by this amendatory
21 Act of the 95th General Assembly are invested through qualified
22 investment advisers who are a "minority owned business" or a
23 "female owned business" as those terms are defined in the
24 Business Enterprise for Minorities, Females, and Persons with
25 Disabilities Act. In determining this maximum for State fiscal
26 years 2008 through 2010, however, the amount referred to in

 

 

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1 item (i) shall be increased, as a percentage of the applicable
2 employee payroll, in equal increments calculated from the sum
3 of the required State contribution for State fiscal year 2007
4 plus the applicable portion of the State's total debt service
5 payments for fiscal year 2007 on the bonds issued for the
6 purposes of Section 7.2 of the General Obligation Bond Act, so
7 that, by State fiscal year 2011, the State is contributing at
8 the rate otherwise required under this Section.
9 (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839,
10 eff. 6-6-06.)
 
11     (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
12     Sec. 2-134. To certify required State contributions and
13 submit vouchers.
14     (a) The Board shall certify to the Governor on or before
15 December 15 of each year the amount of the required State
16 contribution to the System for the next fiscal year. The
17 certification shall include a copy of the actuarial
18 recommendations upon which it is based.
19     On or before May 1, 2004, the Board shall recalculate and
20 recertify to the Governor the amount of the required State
21 contribution to the System for State fiscal year 2005, taking
22 into account the amounts appropriated to and received by the
23 System under subsection (d) of Section 7.2 of the General
24 Obligation Bond Act.
25     On or before July 1, 2005, the Board shall recalculate and

 

 

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1 recertify to the Governor the amount of the required State
2 contribution to the System for State fiscal year 2006, taking
3 into account the changes in required State contributions made
4 by this amendatory Act of the 94th General Assembly.
5     On or before July 1, 2008, the board shall recalculate and
6 recertify to the Governor the amount of the required State
7 contribution to the System for State fiscal year 2009, taking
8 into account the changes in required contributions made by this
9 amendatory Act of the 95th General Assembly.
10     (b) Beginning in State fiscal year 1996, on or as soon as
11 possible after the 15th day of each month the Board shall
12 submit vouchers for payment of State contributions to the
13 System, in a total monthly amount of one-twelfth of the
14 required annual State contribution certified under subsection
15 (a). From the effective date of this amendatory Act of the 93rd
16 General Assembly through June 30, 2004, the Board shall not
17 submit vouchers for the remainder of fiscal year 2004 in excess
18 of the fiscal year 2004 certified contribution amount
19 determined under this Section after taking into consideration
20 the transfer to the System under subsection (d) of Section
21 6z-61 of the State Finance Act. These vouchers shall be paid by
22 the State Comptroller and Treasurer by warrants drawn on the
23 funds appropriated to the System for that fiscal year. If in
24 any month the amount remaining unexpended from all other
25 appropriations to the System for the applicable fiscal year
26 (including the appropriations to the System under Section 8.12

 

 

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1 of the State Finance Act and Section 1 of the State Pension
2 Funds Continuing Appropriation Act) is less than the amount
3 lawfully vouchered under this Section, the difference shall be
4 paid from the General Revenue Fund under the continuing
5 appropriation authority provided in Section 1.1 of the State
6 Pension Funds Continuing Appropriation Act.
7     (c) The full amount of any annual appropriation for the
8 System for State fiscal year 1995 shall be transferred and made
9 available to the System at the beginning of that fiscal year at
10 the request of the Board. Any excess funds remaining at the end
11 of any fiscal year from appropriations shall be retained by the
12 System as a general reserve to meet the System's accrued
13 liabilities.
14 (Source: P.A. 94-4, eff. 6-1-05; 94-536, eff. 8-10-05; 95-331,
15 eff. 8-21-07.)
 
16     (40 ILCS 5/14-131)   (from Ch. 108 1/2, par. 14-131)
17     Sec. 14-131. Contributions by State.
18     (a) The State shall make contributions to the System by
19 appropriations of amounts which, together with other employer
20 contributions from trust, federal, and other funds, employee
21 contributions, investment income, and other income, will be
22 sufficient to meet the cost of maintaining and administering
23 the System on a 90% funded basis in accordance with actuarial
24 recommendations.
25     For the purposes of this Section and Section 14-135.08,

 

 

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1 references to State contributions refer only to employer
2 contributions and do not include employee contributions that
3 are picked up or otherwise paid by the State or a department on
4 behalf of the employee.
5     (b) The Board shall determine the total amount of State
6 contributions required for each fiscal year on the basis of the
7 actuarial tables and other assumptions adopted by the Board,
8 using the formula in subsection (e).
9     The Board shall also determine a State contribution rate
10 for each fiscal year, expressed as a percentage of payroll,
11 based on the total required State contribution for that fiscal
12 year (less the amount received by the System from
13 appropriations under Section 8.12 of the State Finance Act and
14 Section 1 of the State Pension Funds Continuing Appropriation
15 Act, if any, for the fiscal year ending on the June 30
16 immediately preceding the applicable November 15 certification
17 deadline), the estimated payroll (including all forms of
18 compensation) for personal services rendered by eligible
19 employees, and the recommendations of the actuary.
20     For the purposes of this Section and Section 14.1 of the
21 State Finance Act, the term "eligible employees" includes
22 employees who participate in the System, persons who may elect
23 to participate in the System but have not so elected, persons
24 who are serving a qualifying period that is required for
25 participation, and annuitants employed by a department as
26 described in subdivision (a)(1) or (a)(2) of Section 14-111.

 

 

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1     (c) Contributions shall be made by the several departments
2 for each pay period by warrants drawn by the State Comptroller
3 against their respective funds or appropriations based upon
4 vouchers stating the amount to be so contributed. These amounts
5 shall be based on the full rate certified by the Board under
6 Section 14-135.08 for that fiscal year. From the effective date
7 of this amendatory Act of the 93rd General Assembly through the
8 payment of the final payroll from fiscal year 2004
9 appropriations, the several departments shall not make
10 contributions for the remainder of fiscal year 2004 but shall
11 instead make payments as required under subsection (a-1) of
12 Section 14.1 of the State Finance Act. The several departments
13 shall resume those contributions at the commencement of fiscal
14 year 2005.
15     (d) If an employee is paid from trust funds or federal
16 funds, the department or other employer shall pay employer
17 contributions from those funds to the System at the certified
18 rate, unless the terms of the trust or the federal-State
19 agreement preclude the use of the funds for that purpose, in
20 which case the required employer contributions shall be paid by
21 the State. From the effective date of this amendatory Act of
22 the 93rd General Assembly through the payment of the final
23 payroll from fiscal year 2004 appropriations, the department or
24 other employer shall not pay contributions for the remainder of
25 fiscal year 2004 but shall instead make payments as required
26 under subsection (a-1) of Section 14.1 of the State Finance

 

 

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1 Act. The department or other employer shall resume payment of
2 contributions at the commencement of fiscal year 2005.
3     (e) Except as otherwise provided in this Section, the For
4 State fiscal years 2011 through 2045, the minimum contribution
5 to the System to be made by the State for each fiscal year
6 shall be an amount determined by the System to be sufficient to
7 bring the total assets of the System up to 90% of the total
8 actuarial liabilities of the System by the end of State fiscal
9 year 2034, as 2045. In making these determinations, the
10 required State contribution shall be calculated each year as a
11 level percentage of payroll over the years remaining to and
12 including fiscal year 2045 and shall be determined under the
13 projected unit credit actuarial cost method.
14     For State fiscal years 1996 through 2005, the State
15 contribution to the System, as a percentage of the applicable
16 employee payroll, shall be increased in equal annual increments
17 so that by State fiscal year 2011, the State is contributing at
18 the rate required under this Section; except that (i) for State
19 fiscal year 1998, for all purposes of this Code and any other
20 law of this State, the certified percentage of the applicable
21 employee payroll shall be 5.052% for employees earning eligible
22 creditable service under Section 14-110 and 6.500% for all
23 other employees, notwithstanding any contrary certification
24 made under Section 14-135.08 before the effective date of this
25 amendatory Act of 1997, and (ii) in the following specified
26 State fiscal years, the State contribution to the System shall

 

 

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1 not be less than the following indicated percentages of the
2 applicable employee payroll, even if the indicated percentage
3 will produce a State contribution in excess of the amount
4 otherwise required under this subsection and subsection (a):
5 9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
6 2002; 10.6% in FY 2003; and 10.8% in FY 2004.
7     Notwithstanding any other provision of this Article, the
8 total required State contribution to the System for State
9 fiscal year 2006 is $203,783,900.
10     Notwithstanding any other provision of this Article, the
11 total required State contribution to the System for State
12 fiscal year 2007 is $344,164,400.
13     Notwithstanding any other provision of this Article, the
14 total required State contribution to the System for State
15 fiscal year 2009 is $623,406,000, less that percentage of
16 estimated fiscal year 2009 debt service payable on bonds
17 authorized by this amendatory Act of the 95th General Assembly
18 that is attributable to the percentage of bond proceeds
19 received by the System.
20     For each of State fiscal years 2010 2008 through 2038 2010,
21 the State contribution to the System, as a percentage of the
22 applicable employee payroll, shall be increased in an equal
23 annual amount equal to the increase from the required State
24 contribution from the preceding fiscal year, and this increase
25 shall be increased by 3% each year increments from the required
26 State contribution for State fiscal year 2007, so that by State

 

 

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1 fiscal year 2038 2011, the State is contributing at the rate
2 otherwise required under this Section. If in any year this
3 specified payment, when actuarially projected forward, should
4 not be sufficient to achieve 90% funding by 2038, then that
5 year's contribution shall be the amount necessary when taken as
6 a level dollar increase, increased by 3% each year, to achieve
7 90% funding by 2038.
8     Beginning in State fiscal year 2039 or the fiscal year
9 following that fiscal year during which 90% funding is
10 achieved, the minimum State contribution for each fiscal year
11 shall be the amount determined by the System to be sufficient
12 to accumulate total System assets equal to 90% of the total
13 actuarial liabilities of the System over 30 years. In making
14 these determinations, the required State contribution shall be
15 calculated each year as a level percentage of employee payroll
16 over 30 years and shall be determined under the project unit
17 credit actuarial cost method. 2046, the minimum State
18 contribution for each fiscal year shall be the amount needed to
19 maintain the total assets of the System at 90% of the total
20 actuarial liabilities of the System.
21     Amounts received by the System pursuant to Section 25 of
22 the Budget Stabilization Act in any fiscal year do not reduce
23 and do not constitute payment of any portion of the minimum
24 State contribution required under this Article in that fiscal
25 year. Such amounts shall not reduce, and shall not be included
26 in the calculation of, the required State contributions under

 

 

SB0788 Engrossed - 26 - LRB095 05457 RCE 25547 b

1 this Article in any future year until the System has reached a
2 funding ratio of at least 90%. A reference in this Article to
3 the "required State contribution" or any substantially similar
4 term does not include or apply to any amounts payable to the
5 System under Section 25 of the Budget Stabilization Act.
6     Notwithstanding any other provision of this Section, the
7 required State contribution for State fiscal year 2005 and for
8 fiscal year 2008 and for fiscal year 2010 and each fiscal year
9 thereafter, as calculated under this Section and certified
10 under Section 14-135.08, shall not exceed an amount equal to
11 (i) the amount of the required State contribution that would
12 have been calculated under this Section for that fiscal year if
13 the System had not received any payments under subsection (d)
14 of Section 7.2 of the General Obligation Bond Act, minus (ii)
15 the portion of the State's total debt service payments for that
16 fiscal year on the bonds issued for the purposes of that
17 Section 7.2, as determined and certified by the Comptroller,
18 that is the same as the System's portion of the total moneys
19 distributed under subsection (d) of Section 7.2 of the General
20 Obligation Bond Act. In determining this maximum for State
21 fiscal years 2008 through 2010, however, the amount referred to
22 in item (i) shall be increased, as a percentage of the
23 applicable employee payroll, in equal increments calculated
24 from the sum of the required State contribution for State
25 fiscal year 2007 plus the applicable portion of the State's
26 total debt service payments for fiscal year 2007 on the bonds

 

 

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1 issued for the purposes of Section 7.2 of the General
2 Obligation Bond Act, so that, by State fiscal year 2011, the
3 State is contributing at the rate otherwise required under this
4 Section.
5     (f) After the submission of all payments for eligible
6 employees from personal services line items in fiscal year 2004
7 have been made, the Comptroller shall provide to the System a
8 certification of the sum of all fiscal year 2004 expenditures
9 for personal services that would have been covered by payments
10 to the System under this Section if the provisions of this
11 amendatory Act of the 93rd General Assembly had not been
12 enacted. Upon receipt of the certification, the System shall
13 determine the amount due to the System based on the full rate
14 certified by the Board under Section 14-135.08 for fiscal year
15 2004 in order to meet the State's obligation under this
16 Section. The System shall compare this amount due to the amount
17 received by the System in fiscal year 2004 through payments
18 under this Section and under Section 6z-61 of the State Finance
19 Act. If the amount due is more than the amount received, the
20 difference shall be termed the "Fiscal Year 2004 Shortfall" for
21 purposes of this Section, and the Fiscal Year 2004 Shortfall
22 shall be satisfied under Section 1.2 of the State Pension Funds
23 Continuing Appropriation Act. If the amount due is less than
24 the amount received, the difference shall be termed the "Fiscal
25 Year 2004 Overpayment" for purposes of this Section, and the
26 Fiscal Year 2004 Overpayment shall be repaid by the System to

 

 

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1 the Pension Contribution Fund as soon as practicable after the
2 certification.
3     (g) Notwithstanding this Code or any other law to the
4 contrary, the Board must ensure that at least 19% of the
5 proceeds from the issuance of general obligation bonds under
6 the General Obligation Bond Act authorized by this amendatory
7 Act of the 95th General Assembly are invested through qualified
8 investment advisers who are a "minority owned business" or a
9 "female owned business" as those terms are defined in the
10 Business Enterprise for Minorities, Females, and Persons with
11 Disabilities Act.
12 (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4,
13 eff. 6-1-05; 94-839, eff. 6-6-06.)
 
14     (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
15     Sec. 14-135.08. To certify required State contributions.
16     (a) To certify to the Governor and to each department, on
17 or before November 15 of each year, the required rate for State
18 contributions to the System for the next State fiscal year, as
19 determined under subsection (b) of Section 14-131. The
20 certification to the Governor shall include a copy of the
21 actuarial recommendations upon which the rate is based.
22     (b) The certification shall include an additional amount
23 necessary to pay all principal of and interest on those general
24 obligation bonds due the next fiscal year authorized by Section
25 7.2(a) of the General Obligation Bond Act and issued to provide

 

 

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1 the proceeds deposited by the State with the System in July
2 2003, representing deposits other than amounts reserved under
3 Section 7.2(c) of the General Obligation Bond Act from the bond
4 sale authorized by Public Act 93-2. For State fiscal year 2005,
5 the Board shall make a supplemental certification of the
6 additional amount necessary to pay all principal of and
7 interest on those general obligation bonds due in State fiscal
8 years 2004 and 2005 authorized by Section 7.2(a) of the General
9 Obligation Bond Act and issued to provide the proceeds
10 deposited by the State with the System in July 2003,
11 representing deposits other than amounts reserved under
12 Section 7.2(c) of the General Obligation Bond Act, as soon as
13 practical after the effective date of this amendatory Act of
14 the 93rd General Assembly.
15     On or before May 1, 2004, the Board shall recalculate and
16 recertify to the Governor and to each department the amount of
17 the required State contribution to the System and the required
18 rates for State contributions to the System for State fiscal
19 year 2005, taking into account the amounts appropriated to and
20 received by the System under subsection (d) of Section 7.2 of
21 the General Obligation Bond Act.
22     On or before July 1, 2005, the Board shall recalculate and
23 recertify to the Governor and to each department the amount of
24 the required State contribution to the System and the required
25 rates for State contributions to the System for State fiscal
26 year 2006, taking into account the changes in required State

 

 

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1 contributions made by this amendatory Act of the 94th General
2 Assembly.
3     On or before July 1, 2008, the Board shall recalculate and
4 recertify to the Governor and to each Department the amount of
5 the required State contribution to the System and the required
6 rates for State contribution to the System for State fiscal
7 year 2009, taking into account the changes in required
8 contributions made by this amendatory Act of the 95th General
9 Assembly.
10 (Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4,
11 eff. 6-1-05.)
 
12     (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
13     Sec. 15-155. Employer contributions.
14     (a) The State of Illinois shall make contributions by
15 appropriations of amounts which, together with the other
16 employer contributions from trust, federal, and other funds,
17 employee contributions, income from investments, and other
18 income of this System, will be sufficient to meet the cost of
19 maintaining and administering the System on a 90% funded basis
20 in accordance with actuarial recommendations.
21     The Board shall determine the amount of State contributions
22 required for each fiscal year on the basis of the actuarial
23 tables and other assumptions adopted by the Board and the
24 recommendations of the actuary, using the formula in subsection
25 (a-1).

 

 

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1     (a-1) Except as otherwise provided in this Section, the For
2 State fiscal years 2011 through 2045, the minimum contribution
3 to the System to be made by the State for each fiscal year
4 shall be an amount determined by the System to be sufficient to
5 bring the total assets of the System up to 90% of the total
6 actuarial liabilities of the System by the end of State fiscal
7 year 2034, as 2045. In making these determinations, the
8 required State contribution shall be calculated each year as a
9 level percentage of payroll over the years remaining to and
10 including fiscal year 2045 and shall be determined under the
11 projected unit credit actuarial cost method.
12     For State fiscal years 1996 through 2005, the State
13 contribution to the System, as a percentage of the applicable
14 employee payroll, shall be increased in equal annual increments
15 so that by State fiscal year 2011, the State is contributing at
16 the rate required under this Section.
17     Notwithstanding any other provision of this Article, the
18 total required State contribution for State fiscal year 2006 is
19 $166,641,900.
20     Notwithstanding any other provision of this Article, the
21 total required State contribution for State fiscal year 2007 is
22 $252,064,100.
23     Notwithstanding any other provision of this Article, the
24 total required State contribution for State fiscal year 2009 is
25 $422,189,000, less that percentage of estimated fiscal year
26 2009 debt service payable on bonds authorized by this

 

 

SB0788 Engrossed - 32 - LRB095 05457 RCE 25547 b

1 amendatory Act of the 95th General Assembly that is
2 attributable to the percentage of bond proceeds received by the
3 System.
4     For each of State fiscal years 2010 2008 through 2038 2010,
5 the State contribution to the System, as a percentage of the
6 applicable employee payroll, shall be increased in an equal
7 annual amount equal to the increase from the required State
8 contribution from the preceding fiscal year, and this increase
9 shall be increased by 3% each year increments from the required
10 State contribution for State fiscal year 2007, so that by State
11 fiscal year 2038 2011, the State is contributing at the rate
12 otherwise required under this Section. If in any year this
13 specified payment, when actuarially projected forward, should
14 not be sufficient to achieve 90% funding by 2038, then that
15 year's contribution shall be the amount necessary when taken as
16 a level dollar increase, increased by 3% each year, to achieve
17 90% funding by 2038.
18     Beginning in State fiscal year 2039 or the fiscal year
19 following that fiscal year during which 90% funding is
20 achieved, the minimum State contribution for each fiscal year
21 shall be the amount determined by the System to be sufficient
22 to accumulate total System assets equal to 90% of the total
23 actuarial liabilities of the System over 30 years. In making
24 these determinations, the required State contribution shall be
25 calculated each year as a level percentage of employee payroll
26 over 30 years and shall be determined under the project unit

 

 

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1 credit actuarial cost method. 2046, the minimum State
2 contribution for each fiscal year shall be the amount needed to
3 maintain the total assets of the System at 90% of the total
4 actuarial liabilities of the System.
5     Amounts received by the System pursuant to Section 25 of
6 the Budget Stabilization Act in any fiscal year do not reduce
7 and do not constitute payment of any portion of the minimum
8 State contribution required under this Article in that fiscal
9 year. Such amounts shall not reduce, and shall not be included
10 in the calculation of, the required State contributions under
11 this Article in any future year until the System has reached a
12 funding ratio of at least 90%. A reference in this Article to
13 the "required State contribution" or any substantially similar
14 term does not include or apply to any amounts payable to the
15 System under Section 25 of the Budget Stabilization Act.
16     Notwithstanding any other provision of this Section, the
17 required State contribution for State fiscal year 2005 and for
18 fiscal year 2008 and for fiscal year 2010 and each fiscal year
19 thereafter, as calculated under this Section and certified
20 under Section 15-165, shall not exceed an amount equal to (i)
21 the amount of the required State contribution that would have
22 been calculated under this Section for that fiscal year if the
23 System had not received any payments under subsection (d) of
24 Section 7.2 of the General Obligation Bond Act, minus (ii) the
25 portion of the State's total debt service payments for that
26 fiscal year on the bonds issued for the purposes of that

 

 

SB0788 Engrossed - 34 - LRB095 05457 RCE 25547 b

1 Section 7.2, as determined and certified by the Comptroller,
2 that is the same as the System's portion of the total moneys
3 distributed under subsection (d) of Section 7.2 of the General
4 Obligation Bond Act. In determining this maximum for State
5 fiscal years 2008 through 2010, however, the amount referred to
6 in item (i) shall be increased, as a percentage of the
7 applicable employee payroll, in equal increments calculated
8 from the sum of the required State contribution for State
9 fiscal year 2007 plus the applicable portion of the State's
10 total debt service payments for fiscal year 2007 on the bonds
11 issued for the purposes of Section 7.2 of the General
12 Obligation Bond Act, so that, by State fiscal year 2011, the
13 State is contributing at the rate otherwise required under this
14 Section.
15     (b) If an employee is paid from trust or federal funds, the
16 employer shall pay to the Board contributions from those funds
17 which are sufficient to cover the accruing normal costs on
18 behalf of the employee. However, universities having employees
19 who are compensated out of local auxiliary funds, income funds,
20 or service enterprise funds are not required to pay such
21 contributions on behalf of those employees. The local auxiliary
22 funds, income funds, and service enterprise funds of
23 universities shall not be considered trust funds for the
24 purpose of this Article, but funds of alumni associations,
25 foundations, and athletic associations which are affiliated
26 with the universities included as employers under this Article

 

 

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

 

 

SB0788 Engrossed - 36 - LRB095 05457 RCE 25547 b

1 College Board or the System for employer contributions.
2     (d) Beginning in State fiscal year 1996, the required State
3 contributions to the System shall be appropriated directly to
4 the System and shall be payable through vouchers issued in
5 accordance with subsection (c) of Section 15-165, except as
6 provided in subsection (g).
7     (e) The State Comptroller shall draw warrants payable to
8 the System upon proper certification by the System or by the
9 employer in accordance with the appropriation laws and this
10 Code.
11     (f) Normal costs under this Section means liability for
12 pensions and other benefits which accrues to the System because
13 of the credits earned for service rendered by the participants
14 during the fiscal year and expenses of administering the
15 System, but shall not include the principal of or any
16 redemption premium or interest on any bonds issued by the Board
17 or any expenses incurred or deposits required in connection
18 therewith.
19     (g) If the amount of a participant's earnings for any
20 academic year used to determine the final rate of earnings,
21 determined on a full-time equivalent basis, exceeds the amount
22 of his or her earnings with the same employer for the previous
23 academic year, determined on a full-time equivalent basis, by
24 more than 6%, the participant's employer shall pay to the
25 System, in addition to all other payments required under this
26 Section and in accordance with guidelines established by the

 

 

SB0788 Engrossed - 37 - LRB095 05457 RCE 25547 b

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

 

 

SB0788 Engrossed - 38 - LRB095 05457 RCE 25547 b

1 within 90 days after receipt of the bill, then interest will be
2 charged at a rate equal to the System's annual actuarially
3 assumed rate of return on investment compounded annually from
4 the 91st day after receipt of the bill. Payments must be
5 concluded within 3 years after the employer's receipt of the
6 bill.
7     (h) This subsection (h) applies only to payments made or
8 salary increases given on or after June 1, 2005 but before July
9 1, 2011. The changes made by Public Act 94-1057 shall not
10 require the System to refund any payments received before July
11 31, 2006 (the effective date of Public Act 94-1057).
12     When assessing payment for any amount due under subsection
13 (g), the System shall exclude earnings increases paid to
14 participants under contracts or collective bargaining
15 agreements entered into, amended, or renewed before June 1,
16 2005.
17     When assessing payment for any amount due under subsection
18 (g), the System shall exclude earnings increases paid to a
19 participant at a time when the participant is 10 or more years
20 from retirement eligibility under Section 15-135.
21     When assessing payment for any amount due under subsection
22 (g), the System shall exclude earnings increases resulting from
23 overload work, including a contract for summer teaching, or
24 overtime when the employer has certified to the System, and the
25 System has approved the certification, that: (i) in the case of
26 overloads (A) the overload work is for the sole purpose of

 

 

SB0788 Engrossed - 39 - LRB095 05457 RCE 25547 b

1 academic instruction in excess of the standard number of
2 instruction hours for a full-time employee occurring during the
3 academic year that the overload is paid and (B) the earnings
4 increases are equal to or less than the rate of pay for
5 academic instruction computed using the participant's current
6 salary rate and work schedule; and (ii) in the case of
7 overtime, the overtime was necessary for the educational
8 mission.
9     When assessing payment for any amount due under subsection
10 (g), the System shall exclude any earnings increase resulting
11 from (i) a promotion for which the employee moves from one
12 classification to a higher classification under the State
13 Universities Civil Service System, (ii) a promotion in academic
14 rank for a tenured or tenure-track faculty position, or (iii) a
15 promotion that the Illinois Community College Board has
16 recommended in accordance with subsection (k) of this Section.
17 These earnings increases shall be excluded only if the
18 promotion is to a position that has existed and been filled by
19 a member for no less than one complete academic year and the
20 earnings increase as a result of the promotion is an increase
21 that results in an amount no greater than the average salary
22 paid for other similar positions.
23     (i) When assessing payment for any amount due under
24 subsection (g), the System shall exclude any salary increase
25 described in subsection (h) of this Section given on or after
26 July 1, 2011 but before July 1, 2014 under a contract or

 

 

SB0788 Engrossed - 40 - LRB095 05457 RCE 25547 b

1 collective bargaining agreement entered into, amended, or
2 renewed on or after June 1, 2005 but before July 1, 2011.
3 Notwithstanding any other provision of this Section, any
4 payments made or salary increases given after June 30, 2014
5 shall be used in assessing payment for any amount due under
6 subsection (g) of this Section.
7     (j) The System shall prepare a report and file copies of
8 the report with the Governor and the General Assembly by
9 January 1, 2007 that contains all of the following information:
10         (1) The number of recalculations required by the
11     changes made to this Section by Public Act 94-1057 for each
12     employer.
13         (2) The dollar amount by which each employer's
14     contribution to the System was changed due to
15     recalculations required by Public Act 94-1057.
16         (3) The total amount the System received from each
17     employer as a result of the changes made to this Section by
18     Public Act 94-4.
19         (4) The increase in the required State contribution
20     resulting from the changes made to this Section by Public
21     Act 94-1057.
22     (k) The Illinois Community College Board shall adopt rules
23 for recommending lists of promotional positions submitted to
24 the Board by community colleges and for reviewing the
25 promotional lists on an annual basis. When recommending
26 promotional lists, the Board shall consider the similarity of

 

 

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1 the positions submitted to those positions recognized for State
2 universities by the State Universities Civil Service System.
3 The Illinois Community College Board shall file a copy of its
4 findings with the System. The System shall consider the
5 findings of the Illinois Community College Board when making
6 determinations under this Section. The System shall not exclude
7 any earnings increases resulting from a promotion when the
8 promotion was not submitted by a community college. Nothing in
9 this subsection (k) shall require any community college to
10 submit any information to the Community College Board.
11     (l) Notwithstanding this Code or any other law to the
12 contrary, the Board must ensure that at least 19% of the
13 proceeds from the issuance of general obligation bonds under
14 the General Obligation Bond Act authorized by this amendatory
15 Act of the 95th General Assembly are invested through qualified
16 investment advisers who are a "minority owned business" or a
17 "female owned business" as those terms are defined in the
18 Business Enterprise for Minorities, Females, and Persons with
19 Disabilities Act.
20 (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
21 eff. 7-31-06; 95-331, eff. 8-21-07.)
 
22     (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
23     Sec. 15-165. To certify amounts and submit vouchers.
24     (a) The Board shall certify to the Governor on or before
25 November 15 of each year the appropriation required from State

 

 

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1 funds for the purposes of this System for the following fiscal
2 year. The certification shall include a copy of the actuarial
3 recommendations upon which it is based.
4     On or before May 1, 2004, the Board shall recalculate and
5 recertify to the Governor the amount of the required State
6 contribution to the System for State fiscal year 2005, taking
7 into account the amounts appropriated to and received by the
8 System under subsection (d) of Section 7.2 of the General
9 Obligation Bond Act.
10     On or before July 1, 2005, the Board shall recalculate and
11 recertify to the Governor the amount of the required State
12 contribution to the System for State fiscal year 2006, taking
13 into account the changes in required State contributions made
14 by this amendatory Act of the 94th General Assembly.
15     On or before July 1, 2008, the Board shall recalculate and
16 recertify to the Governor the amount of the required State
17 contribution to the System for State fiscal year 2009, taking
18 into account the changes in required State contributions made
19 by this amendatory Act of the 95th General Assembly.
20     (b) The Board shall certify to the State Comptroller or
21 employer, as the case may be, from time to time, by its
22 president and secretary, with its seal attached, the amounts
23 payable to the System from the various funds.
24     (c) Beginning in State fiscal year 1996, on or as soon as
25 possible after the 15th day of each month the Board shall
26 submit vouchers for payment of State contributions to the

 

 

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1 System, in a total monthly amount of one-twelfth of the
2 required annual State contribution certified under subsection
3 (a). From the effective date of this amendatory Act of the 93rd
4 General Assembly through June 30, 2004, the Board shall not
5 submit vouchers for the remainder of fiscal year 2004 in excess
6 of the fiscal year 2004 certified contribution amount
7 determined under this Section after taking into consideration
8 the transfer to the System under subsection (b) of Section
9 6z-61 of the State Finance Act. These vouchers shall be paid by
10 the State Comptroller and Treasurer by warrants drawn on the
11 funds appropriated to the System for that fiscal year.
12     If in any month the amount remaining unexpended from all
13 other appropriations to the System for the applicable fiscal
14 year (including the appropriations to the System under Section
15 8.12 of the State Finance Act and Section 1 of the State
16 Pension Funds Continuing Appropriation Act) is less than the
17 amount lawfully vouchered under this Section, the difference
18 shall be paid from the General Revenue Fund under the
19 continuing appropriation authority provided in Section 1.1 of
20 the State Pension Funds Continuing Appropriation Act.
21     (d) So long as the payments received are the full amount
22 lawfully vouchered under this Section, payments received by the
23 System under this Section shall be applied first toward the
24 employer contribution to the self-managed plan established
25 under Section 15-158.2. Payments shall be applied second toward
26 the employer's portion of the normal costs of the System, as

 

 

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1 defined in subsection (f) of Section 15-155. The balance shall
2 be applied toward the unfunded actuarial liabilities of the
3 System.
4     (e) In the event that the System does not receive, as a
5 result of legislative enactment or otherwise, payments
6 sufficient to fully fund the employer contribution to the
7 self-managed plan established under Section 15-158.2 and to
8 fully fund that portion of the employer's portion of the normal
9 costs of the System, as calculated in accordance with Section
10 15-155(a-1), then any payments received shall be applied
11 proportionately to the optional retirement program established
12 under Section 15-158.2 and to the employer's portion of the
13 normal costs of the System, as calculated in accordance with
14 Section 15-155(a-1).
15 (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4,
16 eff. 6-1-05.)
 
17     (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
18     Sec. 16-158. Contributions by State and other employing
19 units.
20     (a) The State shall make contributions to the System by
21 means of appropriations from the Common School Fund and other
22 State funds of amounts which, together with other employer
23 contributions, employee contributions, investment income, and
24 other income, will be sufficient to meet the cost of
25 maintaining and administering the System on a 90% funded basis

 

 

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1 in accordance with actuarial recommendations.
2     The Board shall determine the amount of State contributions
3 required for each fiscal year on the basis of the actuarial
4 tables and other assumptions adopted by the Board and the
5 recommendations of the actuary, using the formula in subsection
6 (b-3).
7     (a-1) Annually, on or before November 15, the Board shall
8 certify to the Governor the amount of the required State
9 contribution for the coming fiscal year. The certification
10 shall include a copy of the actuarial recommendations upon
11 which it is based.
12     On or before May 1, 2004, the Board shall recalculate and
13 recertify to the Governor the amount of the required State
14 contribution to the System for State fiscal year 2005, taking
15 into account the amounts appropriated to and received by the
16 System under subsection (d) of Section 7.2 of the General
17 Obligation Bond Act.
18     On or before July 1, 2005, the Board shall recalculate and
19 recertify to the Governor the amount of the required State
20 contribution to the System for State fiscal year 2006, taking
21 into account the changes in required State contributions made
22 by this amendatory Act of the 94th General Assembly.
23     On or before July 1, 2008, the board shall recalculate and
24 recertify to the Governor the amount of the required State
25 contribution to the System for State fiscal year 2009, taking
26 into account the changes in required contributions made by this

 

 

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1 amendatory Act of the 95th General Assembly.
2     (b) Through State fiscal year 1995, the State contributions
3 shall be paid to the System in accordance with Section 18-7 of
4 the School Code.
5     (b-1) Beginning in State fiscal year 1996, on the 15th day
6 of each month, or as soon thereafter as may be practicable, the
7 Board shall submit vouchers for payment of State contributions
8 to the System, in a total monthly amount of one-twelfth of the
9 required annual State contribution certified under subsection
10 (a-1). From the effective date of this amendatory Act of the
11 93rd General Assembly through June 30, 2004, the Board shall
12 not submit vouchers for the remainder of fiscal year 2004 in
13 excess of the fiscal year 2004 certified contribution amount
14 determined under this Section after taking into consideration
15 the transfer to the System under subsection (a) of Section
16 6z-61 of the State Finance Act. These vouchers shall be paid by
17 the State Comptroller and Treasurer by warrants drawn on the
18 funds appropriated to the System for that fiscal year.
19     If in any month the amount remaining unexpended from all
20 other appropriations to the System for the applicable fiscal
21 year (including the appropriations to the System under Section
22 8.12 of the State Finance Act and Section 1 of the State
23 Pension Funds Continuing Appropriation Act) is less than the
24 amount lawfully vouchered under this subsection, the
25 difference shall be paid from the Common School Fund under the
26 continuing appropriation authority provided in Section 1.1 of

 

 

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1 the State Pension Funds Continuing Appropriation Act.
2     (b-2) Allocations from the Common School Fund apportioned
3 to school districts not coming under this System shall not be
4 diminished or affected by the provisions of this Article.
5     (b-3) Except as otherwise provided in this Section, the For
6 State fiscal years 2011 through 2045, the minimum contribution
7 to the System to be made by the State for each fiscal year
8 shall be an amount determined by the System to be sufficient to
9 bring the total assets of the System up to 90% of the total
10 actuarial liabilities of the System by the end of State fiscal
11 year 2034, as 2045. In making these determinations, the
12 required State contribution shall be calculated each year as a
13 level percentage of payroll over the years remaining to and
14 including fiscal year 2045 and shall be determined under the
15 projected unit credit actuarial cost method.
16     For State fiscal years 1996 through 2005, the State
17 contribution to the System, as a percentage of the applicable
18 employee payroll, shall be increased in equal annual increments
19 so that by State fiscal year 2011, the State is contributing at
20 the rate required under this Section; except that in the
21 following specified State fiscal years, the State contribution
22 to the System shall not be less than the following indicated
23 percentages of the applicable employee payroll, even if the
24 indicated percentage will produce a State contribution in
25 excess of the amount otherwise required under this subsection
26 and subsection (a), and notwithstanding any contrary

 

 

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1 certification made under subsection (a-1) before the effective
2 date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
3 in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
4 2003; and 13.56% in FY 2004.
5     Notwithstanding any other provision of this Article, the
6 total required State contribution for State fiscal year 2006 is
7 $534,627,700.
8     Notwithstanding any other provision of this Article, the
9 total required State contribution for State fiscal year 2007 is
10 $738,014,500.
11     Notwithstanding any other provision of this Article, the
12 total required State contribution for State fiscal year 2009 is
13 $1,194,588,000, less that percentage of estimated fiscal year
14 2009 debt service payable on bonds authorized by this
15 amendatory Act of the 95th General Assembly that is
16 attributable to the percentage of bond proceeds received by the
17 System.
18     For each of State fiscal years 2010 2008 through 2038 2010,
19 the State contribution to the System, as a percentage of the
20 applicable employee payroll, shall be increased in an equal
21 annual amount equal to the increase from the required State
22 contribution from the preceding fiscal year, and this increase
23 shall be increased by 3% each year increments from the required
24 State contribution for State fiscal year 2007, so that by State
25 fiscal year 2038 2011, the State is contributing at the rate
26 otherwise required under this Section. If in any year this

 

 

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1 specified payment, when actuarially projected forward, should
2 not be sufficient to achieve 90% funding by 2038, then that
3 year's contribution shall be the amount necessary when taken as
4 a level dollar increase, increased by 3% each year, to achieve
5 90% funding by 2038.
6     Beginning in State fiscal year 2039 or the fiscal year
7 following that fiscal year during which 90% funding is
8 achieved, the minimum State contribution for each fiscal year
9 shall be the amount determined by the System to be sufficient
10 to accumulate total System assets equal to 90% of the total
11 actuarial liabilities of the System over 30 years. In making
12 these determinations, the required State contribution shall be
13 calculated each year as a level percentage of employee payroll
14 over 30 years and shall be determined under the project unit
15 credit actuarial cost method. 2046, the minimum State
16 contribution for each fiscal year shall be the amount needed to
17 maintain the total assets of the System at 90% of the total
18 actuarial liabilities of the System.
19     Amounts received by the System pursuant to Section 25 of
20 the Budget Stabilization Act in any fiscal year do not reduce
21 and do not constitute payment of any portion of the minimum
22 State contribution required under this Article in that fiscal
23 year. Such amounts shall not reduce, and shall not be included
24 in the calculation of, the required State contributions under
25 this Article in any future year until the System has reached a
26 funding ratio of at least 90%. A reference in this Article to

 

 

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1 the "required State contribution" or any substantially similar
2 term does not include or apply to any amounts payable to the
3 System under Section 25 of the Budget Stabilization Act.
4     Notwithstanding any other provision of this Section, the
5 required State contribution for State fiscal year 2005 and for
6 fiscal year 2008 and for fiscal year 2010 and each fiscal year
7 thereafter, as calculated under this Section and certified
8 under subsection (a-1), shall not exceed an amount equal to (i)
9 the amount of the required State contribution that would have
10 been calculated under this Section for that fiscal year if the
11 System had not received any payments under subsection (d) of
12 Section 7.2 of the General Obligation Bond Act, minus (ii) the
13 portion of the State's total debt service payments for that
14 fiscal year on the bonds issued for the purposes of that
15 Section 7.2, as determined and certified by the Comptroller,
16 that is the same as the System's portion of the total moneys
17 distributed under subsection (d) of Section 7.2 of the General
18 Obligation Bond Act. In determining this maximum for State
19 fiscal years 2008 through 2010, however, the amount referred to
20 in item (i) shall be increased, as a percentage of the
21 applicable employee payroll, in equal increments calculated
22 from the sum of the required State contribution for State
23 fiscal year 2007 plus the applicable portion of the State's
24 total debt service payments for fiscal year 2007 on the bonds
25 issued for the purposes of Section 7.2 of the General
26 Obligation Bond Act, so that, by State fiscal year 2011, the

 

 

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1 State is contributing at the rate otherwise required under this
2 Section.
3     (c) Payment of the required State contributions and of all
4 pensions, retirement annuities, death benefits, refunds, and
5 other benefits granted under or assumed by this System, and all
6 expenses in connection with the administration and operation
7 thereof, are obligations of the State.
8     If members are paid from special trust or federal funds
9 which are administered by the employing unit, whether school
10 district or other unit, the employing unit shall pay to the
11 System from such funds the full accruing retirement costs based
12 upon that service, as determined by the System. Employer
13 contributions, based on salary paid to members from federal
14 funds, may be forwarded by the distributing agency of the State
15 of Illinois to the System prior to allocation, in an amount
16 determined in accordance with guidelines established by such
17 agency and the System.
18     (d) Effective July 1, 1986, any employer of a teacher as
19 defined in paragraph (8) of Section 16-106 shall pay the
20 employer's normal cost of benefits based upon the teacher's
21 service, in addition to employee contributions, as determined
22 by the System. Such employer contributions shall be forwarded
23 monthly in accordance with guidelines established by the
24 System.
25     However, with respect to benefits granted under Section
26 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)

 

 

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1 of Section 16-106, the employer's contribution shall be 12%
2 (rather than 20%) of the member's highest annual salary rate
3 for each year of creditable service granted, and the employer
4 shall also pay the required employee contribution on behalf of
5 the teacher. For the purposes of Sections 16-133.4 and
6 16-133.5, a teacher as defined in paragraph (8) of Section
7 16-106 who is serving in that capacity while on leave of
8 absence from another employer under this Article shall not be
9 considered an employee of the employer from which the teacher
10 is on leave.
11     (e) Beginning July 1, 1998, every employer of a teacher
12 shall pay to the System an employer contribution computed as
13 follows:
14         (1) Beginning July 1, 1998 through June 30, 1999, the
15     employer contribution shall be equal to 0.3% of each
16     teacher's salary.
17         (2) Beginning July 1, 1999 and thereafter, the employer
18     contribution shall be equal to 0.58% of each teacher's
19     salary.
20 The school district or other employing unit may pay these
21 employer contributions out of any source of funding available
22 for that purpose and shall forward the contributions to the
23 System on the schedule established for the payment of member
24 contributions.
25     These employer contributions are intended to offset a
26 portion of the cost to the System of the increases in

 

 

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1 retirement benefits resulting from this amendatory Act of 1998.
2     Each employer of teachers is entitled to a credit against
3 the contributions required under this subsection (e) with
4 respect to salaries paid to teachers for the period January 1,
5 2002 through June 30, 2003, equal to the amount paid by that
6 employer under subsection (a-5) of Section 6.6 of the State
7 Employees Group Insurance Act of 1971 with respect to salaries
8 paid to teachers for that period.
9     The additional 1% employee contribution required under
10 Section 16-152 by this amendatory Act of 1998 is the
11 responsibility of the teacher and not the teacher's employer,
12 unless the employer agrees, through collective bargaining or
13 otherwise, to make the contribution on behalf of the teacher.
14     If an employer is required by a contract in effect on May
15 1, 1998 between the employer and an employee organization to
16 pay, on behalf of all its full-time employees covered by this
17 Article, all mandatory employee contributions required under
18 this Article, then the employer shall be excused from paying
19 the employer contribution required under this subsection (e)
20 for the balance of the term of that contract. The employer and
21 the employee organization shall jointly certify to the System
22 the existence of the contractual requirement, in such form as
23 the System may prescribe. This exclusion shall cease upon the
24 termination, extension, or renewal of the contract at any time
25 after May 1, 1998.
26     (f) If the amount of a teacher's salary for any school year

 

 

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

 

 

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1 shall specify the calculations used to determine the amount
2 due. If the employer disputes the amount of the bill, it may,
3 within 30 days after receipt of the bill, apply to the System
4 in writing for a recalculation. The application must specify in
5 detail the grounds of the dispute and, if the employer asserts
6 that the calculation is subject to subsection (g) or (h) of
7 this Section, must include an affidavit setting forth and
8 attesting to all facts within the employer's knowledge that are
9 pertinent to the applicability of that subsection. Upon
10 receiving a timely application for recalculation, the System
11 shall review the application and, if appropriate, recalculate
12 the amount due.
13     The employer contributions required under this subsection
14 (f) may be paid in the form of a lump sum within 90 days after
15 receipt of the bill. If the employer contributions are not paid
16 within 90 days after receipt of the bill, then interest will be
17 charged at a rate equal to the System's annual actuarially
18 assumed rate of return on investment compounded annually from
19 the 91st day after receipt of the bill. Payments must be
20 concluded within 3 years after the employer's receipt of the
21 bill.
22     (g) This subsection (g) applies only to payments made or
23 salary increases given on or after June 1, 2005 but before July
24 1, 2011. The changes made by Public Act 94-1057 shall not
25 require the System to refund any payments received before July
26 31, 2006 (the effective date of Public Act 94-1057).

 

 

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1     When assessing payment for any amount due under subsection
2 (f), the System shall exclude salary increases paid to teachers
3 under contracts or collective bargaining agreements entered
4 into, amended, or renewed before June 1, 2005.
5     When assessing payment for any amount due under subsection
6 (f), the System shall exclude salary increases paid to a
7 teacher at a time when the teacher is 10 or more years from
8 retirement eligibility under Section 16-132 or 16-133.2.
9     When assessing payment for any amount due under subsection
10 (f), the System shall exclude salary increases resulting from
11 overload work, including summer school, when the school
12 district has certified to the System, and the System has
13 approved the certification, that (i) the overload work is for
14 the sole purpose of classroom instruction in excess of the
15 standard number of classes for a full-time teacher in a school
16 district during a school year and (ii) the salary increases are
17 equal to or less than the rate of pay for classroom instruction
18 computed on the teacher's current salary and work schedule.
19     When assessing payment for any amount due under subsection
20 (f), the System shall exclude a salary increase resulting from
21 a promotion (i) for which the employee is required to hold a
22 certificate or supervisory endorsement issued by the State
23 Teacher Certification Board that is a different certification
24 or supervisory endorsement than is required for the teacher's
25 previous position and (ii) to a position that has existed and
26 been filled by a member for no less than one complete academic

 

 

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1 year and the salary increase from the promotion is an increase
2 that results in an amount no greater than the lesser of the
3 average salary paid for other similar positions in the district
4 requiring the same certification or the amount stipulated in
5 the collective bargaining agreement for a similar position
6 requiring the same certification.
7     When assessing payment for any amount due under subsection
8 (f), the System shall exclude any payment to the teacher from
9 the State of Illinois or the State Board of Education over
10 which the employer does not have discretion, notwithstanding
11 that the payment is included in the computation of final
12 average salary.
13     (h) When assessing payment for any amount due under
14 subsection (f), the System shall exclude any salary increase
15 described in subsection (g) of this Section given on or after
16 July 1, 2011 but before July 1, 2014 under a contract or
17 collective bargaining agreement entered into, amended, or
18 renewed on or after June 1, 2005 but before July 1, 2011.
19 Notwithstanding any other provision of this Section, any
20 payments made or salary increases given after June 30, 2014
21 shall be used in assessing payment for any amount due under
22 subsection (f) of this Section.
23     (i) The System shall prepare a report and file copies of
24 the report with the Governor and the General Assembly by
25 January 1, 2007 that contains all of the following information:
26         (1) The number of recalculations required by the

 

 

SB0788 Engrossed - 58 - LRB095 05457 RCE 25547 b

1     changes made to this Section by Public Act 94-1057 for each
2     employer.
3         (2) The dollar amount by which each employer's
4     contribution to the System was changed due to
5     recalculations required by Public Act 94-1057.
6         (3) The total amount the System received from each
7     employer as a result of the changes made to this Section by
8     Public Act 94-4.
9         (4) The increase in the required State contribution
10     resulting from the changes made to this Section by Public
11     Act 94-1057.
12     (j) Notwithstanding this Code or any other law to the
13 contrary, the Board must ensure that at least 19% of the
14 proceeds from the issuance of general obligation bonds under
15 the General Obligation Bond Act authorized by this amendatory
16 Act of the 95th General Assembly are invested through qualified
17 investment advisers who are a "minority owned business" or a
18 "female owned business" as those terms are defined in the
19 Business Enterprise for Minorities, Females, and Persons with
20 Disabilities Act.
21 (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
22 eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07.)
 
23     (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
24     Sec. 18-131. Financing; employer contributions.
25     (a) The State of Illinois shall make contributions to this

 

 

SB0788 Engrossed - 59 - LRB095 05457 RCE 25547 b

1 System by appropriations of the amounts which, together with
2 the contributions of participants, net earnings on
3 investments, and other income, will meet the costs of
4 maintaining and administering this System on a 90% funded basis
5 in accordance with actuarial recommendations.
6     (b) The Board shall determine the amount of State
7 contributions required for each fiscal year on the basis of the
8 actuarial tables and other assumptions adopted by the Board and
9 the prescribed rate of interest, using the formula in
10 subsection (c).
11     (c) Except as otherwise provided in this Section, the For
12 State fiscal years 2011 through 2045, the minimum contribution
13 to the System to be made by the State for each fiscal year
14 shall be an amount determined by the System to be sufficient to
15 bring the total assets of the System up to 90% of the total
16 actuarial liabilities of the System by the end of State fiscal
17 year 2034, as 2045. In making these determinations, the
18 required State contribution shall be calculated each year as a
19 level percentage of payroll over the years remaining to and
20 including fiscal year 2045 and shall be determined under the
21 projected unit credit actuarial cost method.
22     For State fiscal years 1996 through 2005, the State
23 contribution to the System, as a percentage of the applicable
24 employee payroll, shall be increased in equal annual increments
25 so that by State fiscal year 2011, the State is contributing at
26 the rate required under this Section.

 

 

SB0788 Engrossed - 60 - LRB095 05457 RCE 25547 b

1     Notwithstanding any other provision of this Article, the
2 total required State contribution for State fiscal year 2006 is
3 $29,189,400.
4     Notwithstanding any other provision of this Article, the
5 total required State contribution for State fiscal year 2007 is
6 $35,236,800.
7     Notwithstanding any other provision of this Article, the
8 total required State contribution for State fiscal year 2009 is
9 $51,931,000, less that percentage of estimated fiscal year 2009
10 debt service payable on bonds authorized by this amendatory Act
11 of the 95th General Assembly that is attributable to the
12 percentage of bond proceeds received by the System.
13     For each of State fiscal years 2010 2008 through 2038 2010,
14 the State contribution to the System, as a percentage of the
15 applicable employee payroll, shall be increased in an equal
16 annual amount equal to the increase from the required State
17 contribution from the preceding fiscal year, and this increase
18 shall be increased by 3% each year increments from the required
19 State contribution for State fiscal year 2007, so that by State
20 fiscal year 2038 2011, the State is contributing at the rate
21 otherwise required under this Section. If in any year this
22 specified payment, when actuarially projected forward, should
23 not be sufficient to achieve 90% funding by 2038, then that
24 year's contribution shall be the amount necessary when taken as
25 a level dollar increase, increased by 3% each year, to achieve
26 90% funding by 2038.

 

 

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1     Beginning in State fiscal year 2039 or the fiscal year
2 following that fiscal year during which 90% funding is
3 achieved, the minimum State contribution for each fiscal year
4 shall be the amount determined by the System to be sufficient
5 to accumulate total System assets equal to 90% of the total
6 actuarial liabilities of the System over 30 years. In making
7 these determinations, the required State contribution shall be
8 calculated each year as a level percentage of employee payroll
9 over 30 years and shall be determined under the project unit
10 credit actuarial cost method. 2046, the minimum State
11 contribution for each fiscal year shall be the amount needed to
12 maintain the total assets of the System at 90% of the total
13 actuarial liabilities of the System.
14     Amounts received by the System pursuant to Section 25 of
15 the Budget Stabilization Act in any fiscal year do not reduce
16 and do not constitute payment of any portion of the minimum
17 State contribution required under this Article in that fiscal
18 year. Such amounts shall not reduce, and shall not be included
19 in the calculation of, the required State contributions under
20 this Article in any future year until the System has reached a
21 funding ratio of at least 90%. A reference in this Article to
22 the "required State contribution" or any substantially similar
23 term does not include or apply to any amounts payable to the
24 System under Section 25 of the Budget Stabilization Act.
25     Notwithstanding any other provision of this Section, the
26 required State contribution for State fiscal year 2005 and for

 

 

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1 fiscal year 2008 and for fiscal year 2010 and each fiscal year
2 thereafter, as calculated under this Section and certified
3 under Section 18-140, shall not exceed an amount equal to (i)
4 the amount of the required State contribution that would have
5 been calculated under this Section for that fiscal year if the
6 System had not received any payments under subsection (d) of
7 Section 7.2 of the General Obligation Bond Act, minus (ii) the
8 portion of the State's total debt service payments for that
9 fiscal year on the bonds issued for the purposes of that
10 Section 7.2, as determined and certified by the Comptroller,
11 that is the same as the System's portion of the total moneys
12 distributed under subsection (d) of Section 7.2 of the General
13 Obligation Bond Act. In determining this maximum for State
14 fiscal years 2008 through 2010, however, the amount referred to
15 in item (i) shall be increased, as a percentage of the
16 applicable employee payroll, in equal increments calculated
17 from the sum of the required State contribution for State
18 fiscal year 2007 plus the applicable portion of the State's
19 total debt service payments for fiscal year 2007 on the bonds
20 issued for the purposes of Section 7.2 of the General
21 Obligation Bond Act, so that, by State fiscal year 2011, the
22 State is contributing at the rate otherwise required under this
23 Section.
24 (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839,
25 eff. 6-6-06.)
 

 

 

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1     (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
2     Sec. 18-140. To certify required State contributions and
3 submit vouchers.
4     (a) The Board shall certify to the Governor, on or before
5 November 15 of each year, the amount of the required State
6 contribution to the System for the following fiscal year. The
7 certification shall include a copy of the actuarial
8 recommendations upon which it is based.
9     On or before May 1, 2004, the Board shall recalculate and
10 recertify to the Governor the amount of the required State
11 contribution to the System for State fiscal year 2005, taking
12 into account the amounts appropriated to and received by the
13 System under subsection (d) of Section 7.2 of the General
14 Obligation Bond Act.
15     On or before July 1, 2005, the Board shall recalculate and
16 recertify to the Governor the amount of the required State
17 contribution to the System for State fiscal year 2006, taking
18 into account the changes in required State contributions made
19 by this amendatory Act of the 94th General Assembly.
20     On or before July 1, 2008, the board shall recalculate and
21 recertify to the Governor the amount of the required State
22 contribution to the System for State fiscal year 2009, taking
23 into account the changes in required contributions made by this
24 amendatory Act of the 95th General Assembly.
25     (b) Beginning in State fiscal year 1996, on or as soon as
26 possible after the 15th day of each month the Board shall

 

 

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1 submit vouchers for payment of State contributions to the
2 System, in a total monthly amount of one-twelfth of the
3 required annual State contribution certified under subsection
4 (a). From the effective date of this amendatory Act of the 93rd
5 General Assembly through June 30, 2004, the Board shall not
6 submit vouchers for the remainder of fiscal year 2004 in excess
7 of the fiscal year 2004 certified contribution amount
8 determined under this Section after taking into consideration
9 the transfer to the System under subsection (c) of Section
10 6z-61 of the State Finance Act. These vouchers shall be paid by
11 the State Comptroller and Treasurer by warrants drawn on the
12 funds appropriated to the System for that fiscal year.
13     If in any month the amount remaining unexpended from all
14 other appropriations to the System for the applicable fiscal
15 year (including the appropriations to the System under Section
16 8.12 of the State Finance Act and Section 1 of the State
17 Pension Funds Continuing Appropriation Act) is less than the
18 amount lawfully vouchered under this Section, the difference
19 shall be paid from the General Revenue Fund under the
20 continuing appropriation authority provided in Section 1.1 of
21 the State Pension Funds Continuing Appropriation Act.
22     (c) Notwithstanding this Code or any other law to the
23 contrary, the Board must ensure that at least 19% of the
24 proceeds from the issuance of general obligation bonds under
25 the General Obligation Bond Act authorized by this amendatory
26 Act of the 95th General Assembly are invested through qualified

 

 

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1 investment advisers who are a "minority owned business" or a
2 "female owned business" as those terms are defined in the
3 Business Enterprise for Minorities, Females, and Persons with
4 Disabilities Act.
5 (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4,
6 eff. 6-1-05.)
 
7     Section 99. Effective date. This Act takes effect upon
8 becoming law.