98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2368

 

Introduced 2/15/2013, by Sen. Kyle McCarter

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Illinois Pension Code. In the 5 State-funded retirement systems: (1) increases employee contributions; (2) decreases the annual increase in retirement annuities; (3) adds funding guarantee language and authorizes a mandamus action against the State; and (4) specifies that State pension funding is subordinate to certain debt service. In the Teachers' Retirement System, provides for the incremental shifting of responsibility for employer contributions from the State to the actual employers, contingent upon the State funding certain school programs. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-103.3, 2-119.1, 2-124, 2-126, 14-114, 14-131,
614-133, 15-136, 15-155, 15-157, 16-133.1, 16-152, 16-158,
718-125.1, 18-131, and 18-133 as follows:
 
8    (40 ILCS 5/1-103.3)
9    Sec. 1-103.3. Application of 1994 amendment; funding
10standard.
11    (a) The provisions of Public Act 88-593 this amendatory Act
12of 1994 that change the method of calculating, certifying, and
13paying the required State contributions to the retirement
14systems established under Articles 2, 14, 15, 16, and 18 shall
15first apply to the State contributions required for State
16fiscal year 1996.
17    (b) (Blank) The General Assembly declares that a funding
18ratio (the ratio of a retirement system's total assets to its
19total actuarial liabilities) of 90% is an appropriate goal for
20State-funded retirement systems in Illinois, and it finds that
21a funding ratio of 90% is now the generally-recognized norm
22throughout the nation for public employee retirement systems
23that are considered to be financially secure and funded in an

 

 

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1appropriate and responsible manner.
2    (c) Every 5 years, beginning in 1999, the Commission on
3Government Forecasting and Accountability, in consultation
4with the affected retirement systems and the Governor's Office
5of Management and Budget (formerly Bureau of the Budget), shall
6consider and determine whether the funding goals 90% funding
7ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
8continue subsection (b) continues to represent an appropriate
9funding goals goal for those State-funded retirement systems in
10Illinois, and it shall report its findings and recommendations
11on this subject to the Governor and the General Assembly.
12(Source: P.A. 93-1067, eff. 1-15-05.)
 
13    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
14    Sec. 2-119.1. Automatic increase in retirement annuity.
15    (a) Except as provided in subsection (a-5), a A participant
16who retires after June 30, 1967, and who has not received an
17initial increase under this Section before the effective date
18of this amendatory Act of 1991, shall, in January or July next
19following the first anniversary of retirement, whichever
20occurs first, and in the same month of each year thereafter,
21but in no event prior to age 60, have the amount of the
22originally granted retirement annuity increased as follows:
23for each year through 1971, 1 1/2%; for each year from 1972
24through 1979, 2%; and for 1980 and each year thereafter, 3%.
25Annuitants who have received an initial increase under this

 

 

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1subsection prior to the effective date of this amendatory Act
2of 1991 shall continue to receive their annual increases in the
3same month as the initial increase.
4    (a-5) Notwithstanding any other provision of this Article,
5the amount of each automatic annual increase in retirement
6annuity occurring on or after the effective date of this
7amendatory Act of the 98th General Assembly shall be 3% or
8one-half of the annual unadjusted percentage increase, if any,
9in the Consumer Price Index-U for the 12 months ending with the
10preceding September, whichever is less, of the first $25,000 of
11the retirement annuity. For the purposes of this Section,
12"Consumer Price Index-U" means the index published by the
13Bureau of Labor Statistics of the United States Department of
14Labor that measures the average change in prices of goods and
15services purchased by all urban consumers, United States city
16average, all items, 1982-84 = 100. This limitation is
17applicable without regard to whether the annuitant was in
18service on or after that effective date.
19    (b) Beginning January 1, 1990, for eligible participants
20who remain in service after attaining 20 years of creditable
21service, the 3% increases provided under subsection (a) shall
22begin to accrue on the January 1 next following the date upon
23which the participant (1) attains age 55, or (2) attains 20
24years of creditable service, whichever occurs later, and shall
25continue to accrue while the participant remains in service;
26such increases shall become payable on January 1 or July 1,

 

 

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1whichever occurs first, next following the first anniversary of
2retirement. For any person who has service credit in the System
3for the entire period from January 15, 1969 through December
431, 1992, regardless of the date of termination of service, the
5reference to age 55 in clause (1) of this subsection (b) shall
6be deemed to mean age 50.
7    This subsection (b) does not apply to any person who first
8becomes a member of the System after the effective date of this
9amendatory Act of the 93rd General Assembly.
10    (b-5) Subject to subsection (a-5), but notwithstanding
11Notwithstanding any other provision of this Article, a
12participant who first becomes a participant on or after January
131, 2011 (the effective date of Public Act 96-889) shall, in
14January or July next following the first anniversary of
15retirement, whichever occurs first, and in the same month of
16each year thereafter, but in no event prior to age 67, have the
17amount of the retirement annuity then being paid increased by
183% or the annual unadjusted percentage increase in the Consumer
19Price Index for All Urban Consumers as determined by the Public
20Pension Division of the Department of Insurance under
21subsection (a) of Section 2-108.1, whichever is less.
22    (c) The foregoing provisions relating to automatic
23increases are not applicable to a participant who retires
24before having made contributions (at the rate prescribed in
25Section 2-126) for automatic increases for less than the
26equivalent of one full year. However, in order to be eligible

 

 

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1for the automatic increases, such a participant may make
2arrangements to pay to the system the amount required to bring
3the total contributions for the automatic increase to the
4equivalent of one year's contributions based upon his or her
5last salary.
6    (d) A participant who terminated service prior to July 1,
71967, with at least 14 years of service is entitled to an
8increase in retirement annuity beginning January, 1976, and to
9additional increases in January of each year thereafter.
10    The initial increase shall be 1 1/2% of the originally
11granted retirement annuity multiplied by the number of full
12years that the annuitant was in receipt of such annuity prior
13to January 1, 1972, plus 2% of the originally granted
14retirement annuity for each year after that date. The
15subsequent annual increases shall be at the rate of 2% of the
16originally granted retirement annuity for each year through
171979 and at the rate of 3% for 1980 and thereafter.
18    (e) Beginning January 1, 1990, all automatic annual
19increases payable under this Section shall be calculated as a
20percentage of the total annuity payable at the time of the
21increase, including previous increases granted under this
22Article.
23(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
24    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
25    Sec. 2-124. Contributions by State.

 

 

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1    (a) The State shall make contributions to the System by
2appropriations of amounts which, together with the
3contributions of participants, interest earned on investments,
4and other income will meet the cost of maintaining and
5administering the System on a 100% 90% funded basis in
6accordance with actuarial recommendations.
7    (b) The Board shall determine the amount of State
8contributions required for each fiscal year on the basis of the
9actuarial tables and other assumptions adopted by the Board and
10the prescribed rate of interest, using the formula in
11subsection (c).
12    (c) For State fiscal years 2012 through 2045, the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 100%
1690% of the total actuarial liabilities of the System by the end
17of State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22    Pursuant to Article XIII of the 1970 Constitution of the
23State of Illinois, beginning on July 1, 2013, the State shall,
24as a retirement benefit to each participant and annuitant of
25the System be contractually obligated to the System (as a
26fiduciary and trustee of the participants and annuitants) to

 

 

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1pay the Annual Required State Contribution, as determined by
2the Board of the System using generally accepted actuarial
3principles, as is necessary to bring the total assets of the
4System up to 100% of the total actuarial liabilities of the
5System by fiscal year 2045. As a further retirement benefit and
6contractual obligation, each fiscal year, the State shall pay
7to each designated retirement system the Annual Required State
8Contribution certified by the Board for that fiscal year.
9Payments of the Annual Required State Contribution for each
10fiscal year shall be made in equal monthly installments. This
11Section, and the security it provides to participants and
12annuitants is intended to be, and is, a contractual right that
13is part of the pension benefits provided to the participants
14and annuitants. Notwithstanding anything to the contrary in the
15Court of Claims Act or any other law, a designated retirement
16system has the exclusive right to and shall bring a Mandamus
17action in the Circuit Court of Champaign County against the
18State to compel the State to make any installment of the Annual
19Required State Contribution required by this Section,
20irrespective of other remedies that may be available to the
21System. Each member or annuitant of the System has the right to
22bring a Mandamus action against the System in the Circuit Court
23in any judicial district in which the System maintains an
24office if the System fails to bring an action specified in this
25Section, irrespective of other remedies that may be available
26to the member or annuitant.

 

 

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1    Any payments required to be made by the State pursuant to
2this subsection (c) are expressly subordinated to the payment
3of the principal, interest, and premium, if any, on any bonded
4debt obligation of the State or any other State-created entity,
5either currently outstanding or to be issued, for which the
6source of repayment or security thereon is derived directly or
7indirectly from tax revenues collected by the State or any
8other State-created entity. Payments on such bonded
9obligations include any statutory fund transfers or other
10prefunding mechanisms or formulas set forth, now or hereafter,
11in State law or bond indentures, into debt service funds or
12accounts of the State related to such bonded obligations,
13consistent with the payment schedules associated with such
14obligations.
15    For State fiscal years 1996 through 2005, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18so that by State fiscal year 2011, the State is contributing at
19the rate required under this Section.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2006 is
22$4,157,000.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2007 is
25$5,220,300.
26    For each of State fiscal years 2008 through 2009, the State

 

 

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1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3from the required State contribution for State fiscal year
42007, so that by State fiscal year 2011, the State is
5contributing at the rate otherwise required under this Section.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2010 is
8$10,454,000 and shall be made from the proceeds of bonds sold
9in fiscal year 2010 pursuant to Section 7.2 of the General
10Obligation Bond Act, less (i) the pro rata share of bond sale
11expenses determined by the System's share of total bond
12proceeds, (ii) any amounts received from the General Revenue
13Fund in fiscal year 2010, and (iii) any reduction in bond
14proceeds due to the issuance of discounted bonds, if
15applicable.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2011 is
18the amount recertified by the System on or before April 1, 2011
19pursuant to Section 2-134 and shall be made from the proceeds
20of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
21the General Obligation Bond Act, less (i) the pro rata share of
22bond sale expenses determined by the System's share of total
23bond proceeds, (ii) any amounts received from the General
24Revenue Fund in fiscal year 2011, and (iii) any reduction in
25bond proceeds due to the issuance of discounted bonds, if
26applicable.

 

 

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1    Beginning in State fiscal year 2046, the minimum State
2contribution for each fiscal year shall be the amount needed to
3maintain the total assets of the System at 100% 90% of the
4total actuarial liabilities of the System.
5    Amounts received by the System pursuant to Section 25 of
6the Budget Stabilization Act or Section 8.12 of the State
7Finance Act in any fiscal year do not reduce and do not
8constitute payment of any portion of the minimum State
9contribution required under this Article in that fiscal year.
10Such amounts shall not reduce, and shall not be included in the
11calculation of, the required State contributions under this
12Article in any future year until the System has reached a
13funding ratio of at least 90%. A reference in this Article to
14the "required State contribution" or any substantially similar
15term does not include or apply to any amounts payable to the
16System under Section 25 of the Budget Stabilization Act.
17    Notwithstanding any other provision of this Section, the
18required State contribution for State fiscal year 2005 and for
19fiscal year 2008 and each fiscal year thereafter, as calculated
20under this Section and certified under Section 2-134, shall not
21exceed an amount equal to (i) the amount of the required State
22contribution that would have been calculated under this Section
23for that fiscal year if the System had not received any
24payments under subsection (d) of Section 7.2 of the General
25Obligation Bond Act, minus (ii) the portion of the State's
26total debt service payments for that fiscal year on the bonds

 

 

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1issued in fiscal year 2003 for the purposes of that Section
27.2, as determined and certified by the Comptroller, that is
3the same as the System's portion of the total moneys
4distributed under subsection (d) of Section 7.2 of the General
5Obligation Bond Act. In determining this maximum for State
6fiscal years 2008 through 2010, however, the amount referred to
7in item (i) shall be increased, as a percentage of the
8applicable employee payroll, in equal increments calculated
9from the sum of the required State contribution for State
10fiscal year 2007 plus the applicable portion of the State's
11total debt service payments for fiscal year 2007 on the bonds
12issued in fiscal year 2003 for the purposes of Section 7.2 of
13the General Obligation Bond Act, so that, by State fiscal year
142011, the State is contributing at the rate otherwise required
15under this Section.
16    (d) For purposes of determining the required State
17contribution to the System, the value of the System's assets
18shall be equal to the actuarial value of the System's assets,
19which shall be calculated as follows:
20    As of June 30, 2008, the actuarial value of the System's
21assets shall be equal to the market value of the assets as of
22that date. In determining the actuarial value of the System's
23assets for fiscal years after June 30, 2008, any actuarial
24gains or losses from investment return incurred in a fiscal
25year shall be recognized in equal annual amounts over the
265-year period following that fiscal year.

 

 

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1    (e) For purposes of determining the required State
2contribution to the system for a particular year, the actuarial
3value of assets shall be assumed to earn a rate of return equal
4to the system's actuarially assumed rate of return.
5(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
696-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
77-13-12.)
 
8    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
9    Sec. 2-126. Contributions by participants.
10    (a) Each participant shall contribute toward the cost of
11his or her retirement annuity a percentage of each payment of
12salary received by him or her for service as a member as
13follows: for service between October 31, 1947 and January 1,
141959, 5%; for service between January 1, 1959 and June 30,
151969, 6%; for service between July 1, 1969 and January 10,
161973, 6 1/2%; for service after January 10, 1973, 7%; for
17service after December 31, 1981, 8 1/2%.
18    (a-5) In addition to the contributions otherwise required
19under this Article, each participant shall also make the
20following contributions toward the cost of his or her
21retirement annuity from each payment of salary received by him
22or her for service as a member:
23        (1) beginning July 1, 2013 and through June 30, 2014,
24    1% of salary; and
25        (2) beginning on July 1, 2014, 2% of salary.

 

 

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1    (b) Beginning August 2, 1949, each male participant, and
2from July 1, 1971, each female participant shall contribute
3towards the cost of the survivor's annuity 2% of salary.
4    A participant who has no eligible survivor's annuity
5beneficiary may elect to cease making contributions for
6survivor's annuity under this subsection. A survivor's annuity
7shall not be payable upon the death of a person who has made
8this election, unless prior to that death the election has been
9revoked and the amount of the contributions that would have
10been paid under this subsection in the absence of the election
11is paid to the System, together with interest at the rate of 4%
12per year from the date the contributions would have been made
13to the date of payment.
14    (c) Beginning July 1, 1967, each participant shall
15contribute 1% of salary towards the cost of automatic increase
16in annuity provided in Section 2-119.1. These contributions
17shall be made concurrently with contributions for retirement
18annuity purposes.
19    (d) In addition, each participant serving as an officer of
20the General Assembly shall contribute, for the same purposes
21and at the same rates as are required of a regular participant,
22on each additional payment received as an officer. If the
23participant serves as an officer for at least 2 but less than 4
24years, he or she shall contribute an amount equal to the amount
25that would have been contributed had the participant served as
26an officer for 4 years. Persons who serve as officers in the

 

 

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187th General Assembly but cannot receive the additional payment
2to officers because of the ban on increases in salary during
3their terms may nonetheless make contributions based on those
4additional payments for the purpose of having the additional
5payments included in their highest salary for annuity purposes;
6however, persons electing to make these additional
7contributions must also pay an amount representing the
8corresponding employer contributions, as calculated by the
9System.
10    (e) Notwithstanding any other provision of this Article,
11the required contribution of a participant who first becomes a
12participant on or after January 1, 2011 shall not exceed the
13contribution that would be due under this Article if that
14participant's highest salary for annuity purposes were
15$106,800, plus any increases in that amount under Section
162-108.1.
17(Source: P.A. 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
19    Sec. 14-114. Automatic increase in retirement annuity.
20    (a) Subject to the provisions of subsection (a-5):
21    Any person receiving a retirement annuity under this
22Article who retires having attained age 60, or who retires
23before age 60 having at least 35 years of creditable service,
24or who retires on or after January 1, 2001 at an age which,
25when added to the number of years of his or her creditable

 

 

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1service, equals at least 85, shall, on January 1 next following
2the first full year of retirement, have the amount of the then
3fixed and payable monthly retirement annuity increased 3%. Any
4person receiving a retirement annuity under this Article who
5retires before attainment of age 60 and with less than (i) 35
6years of creditable service if retirement is before January 1,
72001, or (ii) the number of years of creditable service which,
8when added to the member's age, would equal 85, if retirement
9is on or after January 1, 2001, shall have the amount of the
10fixed and payable retirement annuity increased by 3% on the
11January 1 occurring on or next following (1) attainment of age
1260, or (2) the first anniversary of retirement, whichever
13occurs later. However, for persons who receive the alternative
14retirement annuity under Section 14-110, references in this
15subsection (a) to attainment of age 60 shall be deemed to refer
16to attainment of age 55. For a person receiving early
17retirement incentives under Section 14-108.3 whose retirement
18annuity began after January 1, 1992 pursuant to an extension
19granted under subsection (e) of that Section, the first
20anniversary of retirement shall be deemed to be January 1,
211993. For a person who retires on or after June 28, 2001 and on
22or before October 1, 2001, and whose retirement annuity is
23calculated, in whole or in part, under Section 14-110 or
24subsection (g) or (h) of Section 14-108, the first anniversary
25of retirement shall be deemed to be January 1, 2002.
26    On each January 1 following the date of the initial

 

 

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1increase under this subsection, the employee's monthly
2retirement annuity shall be increased by an additional 3%.
3    Beginning January 1, 1990 and until the effective date of
4this amendatory Act of the 98th General Assembly, all automatic
5annual increases payable under this Section shall be calculated
6as a percentage of the total annuity payable at the time of the
7increase, including previous increases granted under this
8Article.
9    (a-5) Notwithstanding any other provision of this Article,
10the amount of each automatic annual increase in retirement
11annuity occurring on or after the effective date of this
12amendatory Act of the 98th General Assembly shall be 3% or
13one-half of the annual unadjusted percentage increase, if any,
14in the Consumer Price Index-U for the 12 months ending with the
15preceding September, whichever is less, of the first $25,000 of
16the retirement annuity. For the purposes of this Section,
17"Consumer Price Index-U" means the index published by the
18Bureau of Labor Statistics of the United States Department of
19Labor that measures the average change in prices of goods and
20services purchased by all urban consumers, United States city
21average, all items, 1982-84 = 100. This limitation is
22applicable without regard to whether the annuitant was in
23service on or after that effective date.
24    (b) The provisions of subsection (a) of this Section shall
25be applicable to an employee only if the employee makes the
26additional contributions required after December 31, 1969 for

 

 

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1the purpose of the automatic increases for not less than the
2equivalent of one full year. If an employee becomes an
3annuitant before his additional contributions equal one full
4year's contributions based on his salary at the date of
5retirement, the employee may pay the necessary balance of the
6contributions to the system, without interest, and be eligible
7for the increasing annuity authorized by this Section.
8    (c) The provisions of subsection (a) of this Section shall
9not be applicable to any annuitant who is on retirement on
10December 31, 1969, and thereafter returns to State service,
11unless the member has established at least one year of
12additional creditable service following reentry into service.
13    (d) In addition to other increases which may be provided by
14this Section, on January 1, 1981 any annuitant who was
15receiving a retirement annuity on or before January 1, 1971
16shall have his retirement annuity then being paid increased $1
17per month for each year of creditable service. On January 1,
181982, any annuitant who began receiving a retirement annuity on
19or before January 1, 1977, shall have his retirement annuity
20then being paid increased $1 per month for each year of
21creditable service.
22    On January 1, 1987, any annuitant who began receiving a
23retirement annuity on or before January 1, 1977, shall have the
24monthly retirement annuity increased by an amount equal to 8¢
25per year of creditable service times the number of years that
26have elapsed since the annuity began.

 

 

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1    (e) Every person who receives the alternative retirement
2annuity under Section 14-110 and who is eligible to receive the
33% increase under subsection (a) on January 1, 1986, shall also
4receive on that date a one-time increase in retirement annuity
5equal to the difference between (1) his actual retirement
6annuity on that date, including any increases received under
7subsection (a), and (2) the amount of retirement annuity he
8would have received on that date if the amendments to
9subsection (a) made by Public Act 84-162 had been in effect
10since the date of his retirement.
11(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
1292-651, eff. 7-11-02.)
 
13    (40 ILCS 5/14-131)
14    Sec. 14-131. Contributions by State.
15    (a) The State shall make contributions to the System by
16appropriations of amounts which, together with other employer
17contributions from trust, federal, and other funds, employee
18contributions, investment income, and other income, will be
19sufficient to meet the cost of maintaining and administering
20the System on a 100% 90% funded basis in accordance with
21actuarial recommendations.
22    For the purposes of this Section and Section 14-135.08,
23references to State contributions refer only to employer
24contributions and do not include employee contributions that
25are picked up or otherwise paid by the State or a department on

 

 

SB2368- 19 -LRB098 07118 EFG 37179 b

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

 

 

SB2368- 20 -LRB098 07118 EFG 37179 b

1vouchers stating the amount to be so contributed. These amounts
2shall be based on the full rate certified by the Board under
3Section 14-135.08 for that fiscal year. From the effective date
4of this amendatory Act of the 93rd General Assembly through the
5payment of the final payroll from fiscal year 2004
6appropriations, the several departments shall not make
7contributions for the remainder of fiscal year 2004 but shall
8instead make payments as required under subsection (a-1) of
9Section 14.1 of the State Finance Act. The several departments
10shall resume those contributions at the commencement of fiscal
11year 2005.
12    (c-1) Notwithstanding subsection (c) of this Section, for
13fiscal years 2010, 2012, and 2013 only, contributions by the
14several departments are not required to be made for General
15Revenue Funds payrolls processed by the Comptroller. Payrolls
16paid by the several departments from all other State funds must
17continue to be processed pursuant to subsection (c) of this
18Section.
19    (c-2) For State fiscal years 2010, 2012, and 2013 only, on
20or as soon as possible after the 15th day of each month, the
21Board shall submit vouchers for payment of State contributions
22to the System, in a total monthly amount of one-twelfth of the
23fiscal year General Revenue Fund contribution as certified by
24the System pursuant to Section 14-135.08 of the Illinois
25Pension Code.
26    (d) If an employee is paid from trust funds or federal

 

 

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1funds, the department or other employer shall pay employer
2contributions from those funds to the System at the certified
3rate, unless the terms of the trust or the federal-State
4agreement preclude the use of the funds for that purpose, in
5which case the required employer contributions shall be paid by
6the State. From the effective date of this amendatory Act of
7the 93rd General Assembly through the payment of the final
8payroll from fiscal year 2004 appropriations, the department or
9other employer shall not pay contributions for the remainder of
10fiscal year 2004 but shall instead make payments as required
11under subsection (a-1) of Section 14.1 of the State Finance
12Act. The department or other employer shall resume payment of
13contributions at the commencement of fiscal year 2005.
14    (e) For State fiscal years 2012 through 2045, the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17sufficient to bring the total assets of the System up to 100%
1890% of the total actuarial liabilities of the System by the end
19of State fiscal year 2045. In making these determinations, the
20required State contribution shall be calculated each year as a
21level percentage of payroll over the years remaining to and
22including fiscal year 2045 and shall be determined under the
23projected unit credit actuarial cost method.
24    Pursuant to Article XIII of the 1970 Constitution of the
25State of Illinois, beginning on July 1, 2013, the State shall,
26as a retirement benefit to each participant and annuitant of

 

 

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1the System be contractually obligated to the System (as a
2fiduciary and trustee of the participants and annuitants) to
3pay the Annual Required State Contribution, as determined by
4the Board of the System using generally accepted actuarial
5principles, as is necessary to bring the total assets of the
6System up to 100% of the total actuarial liabilities of the
7System by the end of State fiscal year 2045. As a further
8retirement benefit and contractual obligation, each fiscal
9year, the State shall pay to each designated retirement system
10the Annual Required State Contribution certified by the Board
11for that fiscal year. Payments of the Annual Required State
12Contribution for each fiscal year shall be made in equal
13monthly installments. This Section, and the security it
14provides to participants and annuitants is intended to be, and
15is, a contractual right that is part of the pension benefits
16provided to the participants and annuitants. Notwithstanding
17anything to the contrary in the Court of Claims Act or any
18other law, a designated retirement system has the exclusive
19right to and shall bring a Mandamus action in the Circuit Court
20of Champaign County against the State to compel the State to
21make any installment of the Annual Required State Contribution
22required by this Section, irrespective of other remedies that
23may be available to the System. Each member or annuitant of the
24System has the right to bring a Mandamus action against the
25System in the Circuit Court in any judicial district in which
26the System maintains an office if the System fails to bring an

 

 

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1action specified in this Section, irrespective of other
2remedies that may be available to the member or annuitant.
3    Any payments required to be made by the State pursuant to
4this subsection (e) are expressly subordinated to the payment
5of the principal, interest, and premium, if any, on any bonded
6debt obligation of the State or any other State-created entity,
7either currently outstanding or to be issued, for which the
8source of repayment or security thereon is derived directly or
9indirectly from tax revenues collected by the State or any
10other State-created entity. Payments on such bonded
11obligations include any statutory fund transfers or other
12prefunding mechanisms or formulas set forth, now or hereafter,
13in State law or bond indentures, into debt service funds or
14accounts of the State related to such bonded obligations,
15consistent with the payment schedules associated with such
16obligations.
17    For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20so that by State fiscal year 2011, the State is contributing at
21the rate required under this Section; except that (i) for State
22fiscal year 1998, for all purposes of this Code and any other
23law of this State, the certified percentage of the applicable
24employee payroll shall be 5.052% for employees earning eligible
25creditable service under Section 14-110 and 6.500% for all
26other employees, notwithstanding any contrary certification

 

 

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1made under Section 14-135.08 before the effective date of this
2amendatory Act of 1997, and (ii) in the following specified
3State fiscal years, the State contribution to the System shall
4not be less than the following indicated percentages of the
5applicable employee payroll, even if the indicated percentage
6will produce a State contribution in excess of the amount
7otherwise required under this subsection and subsection (a):
89.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
92002; 10.6% in FY 2003; and 10.8% in FY 2004.
10    Notwithstanding any other provision of this Article, the
11total required State contribution to the System for State
12fiscal year 2006 is $203,783,900.
13    Notwithstanding any other provision of this Article, the
14total required State contribution to the System for State
15fiscal year 2007 is $344,164,400.
16    For each of State fiscal years 2008 through 2009, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19from the required State contribution for State fiscal year
202007, so that by State fiscal year 2011, the State is
21contributing at the rate otherwise required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State General Revenue Fund contribution for
24State fiscal year 2010 is $723,703,100 and shall be made from
25the proceeds of bonds sold in fiscal year 2010 pursuant to
26Section 7.2 of the General Obligation Bond Act, less (i) the

 

 

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1pro rata share of bond sale expenses determined by the System's
2share of total bond proceeds, (ii) any amounts received from
3the General Revenue Fund in fiscal year 2010, and (iii) any
4reduction in bond proceeds due to the issuance of discounted
5bonds, if applicable.
6    Notwithstanding any other provision of this Article, the
7total required State General Revenue Fund contribution for
8State fiscal year 2011 is the amount recertified by the System
9on or before April 1, 2011 pursuant to Section 14-135.08 and
10shall be made from the proceeds of bonds sold in fiscal year
112011 pursuant to Section 7.2 of the General Obligation Bond
12Act, less (i) the pro rata share of bond sale expenses
13determined by the System's share of total bond proceeds, (ii)
14any amounts received from the General Revenue Fund in fiscal
15year 2011, and (iii) any reduction in bond proceeds due to the
16issuance of discounted bonds, if applicable.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 100% 90% of the
20total actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under Section 14-135.08, shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

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1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (f) After the submission of all payments for eligible
7employees from personal services line items in fiscal year 2004
8have been made, the Comptroller shall provide to the System a
9certification of the sum of all fiscal year 2004 expenditures
10for personal services that would have been covered by payments
11to the System under this Section if the provisions of this
12amendatory Act of the 93rd General Assembly had not been
13enacted. Upon receipt of the certification, the System shall
14determine the amount due to the System based on the full rate
15certified by the Board under Section 14-135.08 for fiscal year
162004 in order to meet the State's obligation under this
17Section. The System shall compare this amount due to the amount
18received by the System in fiscal year 2004 through payments
19under this Section and under Section 6z-61 of the State Finance
20Act. If the amount due is more than the amount received, the
21difference shall be termed the "Fiscal Year 2004 Shortfall" for
22purposes of this Section, and the Fiscal Year 2004 Shortfall
23shall be satisfied under Section 1.2 of the State Pension Funds
24Continuing Appropriation Act. If the amount due is less than
25the amount received, the difference shall be termed the "Fiscal
26Year 2004 Overpayment" for purposes of this Section, and the

 

 

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1Fiscal Year 2004 Overpayment shall be repaid by the System to
2the Pension Contribution Fund as soon as practicable after the
3certification.
4    (g) For purposes of determining the required State
5contribution to the System, the value of the System's assets
6shall be equal to the actuarial value of the System's assets,
7which shall be calculated as follows:
8    As of June 30, 2008, the actuarial value of the System's
9assets shall be equal to the market value of the assets as of
10that date. In determining the actuarial value of the System's
11assets for fiscal years after June 30, 2008, any actuarial
12gains or losses from investment return incurred in a fiscal
13year shall be recognized in equal annual amounts over the
145-year period following that fiscal year.
15    (h) For purposes of determining the required State
16contribution to the System for a particular year, the actuarial
17value of assets shall be assumed to earn a rate of return equal
18to the System's actuarially assumed rate of return.
19    (i) After the submission of all payments for eligible
20employees from personal services line items paid from the
21General Revenue Fund in fiscal year 2010 have been made, the
22Comptroller shall provide to the System a certification of the
23sum of all fiscal year 2010 expenditures for personal services
24that would have been covered by payments to the System under
25this Section if the provisions of this amendatory Act of the
2696th General Assembly had not been enacted. Upon receipt of the

 

 

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1certification, the System shall determine the amount due to the
2System based on the full rate certified by the Board under
3Section 14-135.08 for fiscal year 2010 in order to meet the
4State's obligation under this Section. The System shall compare
5this amount due to the amount received by the System in fiscal
6year 2010 through payments under this Section. If the amount
7due is more than the amount received, the difference shall be
8termed the "Fiscal Year 2010 Shortfall" for purposes of this
9Section, and the Fiscal Year 2010 Shortfall shall be satisfied
10under Section 1.2 of the State Pension Funds Continuing
11Appropriation Act. If the amount due is less than the amount
12received, the difference shall be termed the "Fiscal Year 2010
13Overpayment" for purposes of this Section, and the Fiscal Year
142010 Overpayment shall be repaid by the System to the General
15Revenue Fund as soon as practicable after the certification.
16    (j) After the submission of all payments for eligible
17employees from personal services line items paid from the
18General Revenue Fund in fiscal year 2011 have been made, the
19Comptroller shall provide to the System a certification of the
20sum of all fiscal year 2011 expenditures for personal services
21that would have been covered by payments to the System under
22this Section if the provisions of this amendatory Act of the
2396th General Assembly had not been enacted. Upon receipt of the
24certification, the System shall determine the amount due to the
25System based on the full rate certified by the Board under
26Section 14-135.08 for fiscal year 2011 in order to meet the

 

 

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1State's obligation under this Section. The System shall compare
2this amount due to the amount received by the System in fiscal
3year 2011 through payments under this Section. If the amount
4due is more than the amount received, the difference shall be
5termed the "Fiscal Year 2011 Shortfall" for purposes of this
6Section, and the Fiscal Year 2011 Shortfall shall be satisfied
7under Section 1.2 of the State Pension Funds Continuing
8Appropriation Act. If the amount due is less than the amount
9received, the difference shall be termed the "Fiscal Year 2011
10Overpayment" for purposes of this Section, and the Fiscal Year
112011 Overpayment shall be repaid by the System to the General
12Revenue Fund as soon as practicable after the certification.
13    (k) For fiscal years 2012 and 2013 only, after the
14submission of all payments for eligible employees from personal
15services line items paid from the General Revenue Fund in the
16fiscal year have been made, the Comptroller shall provide to
17the System a certification of the sum of all expenditures in
18the fiscal year for personal services. Upon receipt of the
19certification, the System shall determine the amount due to the
20System based on the full rate certified by the Board under
21Section 14-135.08 for the fiscal year in order to meet the
22State's obligation under this Section. The System shall compare
23this amount due to the amount received by the System for the
24fiscal year. If the amount due is more than the amount
25received, the difference shall be termed the "Prior Fiscal Year
26Shortfall" for purposes of this Section, and the Prior Fiscal

 

 

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1Year Shortfall shall be satisfied under Section 1.2 of the
2State Pension Funds Continuing Appropriation Act. If the amount
3due is less than the amount received, the difference shall be
4termed the "Prior Fiscal Year Overpayment" for purposes of this
5Section, and the Prior Fiscal Year Overpayment shall be repaid
6by the System to the General Revenue Fund as soon as
7practicable after the certification.
8(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
996-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
101-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
11eff. 6-30-12.)
 
12    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
13    Sec. 14-133. Contributions on behalf of members.
14    (a) Each participating employee shall make contributions
15to the System, based on the employee's compensation, as
16follows:
17        (1) Covered employees, except as indicated below, 3.5%
18    for retirement annuity, and 0.5% for a widow or survivors
19    annuity;
20        (2) Noncovered employees, except as indicated below,
21    7% for retirement annuity and 1% for a widow or survivors
22    annuity;
23        (3) Noncovered employees serving in a position in which
24    "eligible creditable service" as defined in Section 14-110
25    may be earned, 1% for a widow or survivors annuity plus the

 

 

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1    following amount for retirement annuity: 8.5% through
2    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
3    in 2004 and thereafter;
4        (4) Covered employees serving in a position in which
5    "eligible creditable service" as defined in Section 14-110
6    may be earned, 0.5% for a widow or survivors annuity plus
7    the following amount for retirement annuity: 5% through
8    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
9    and thereafter;
10        (5) Each security employee of the Department of
11    Corrections or of the Department of Human Services who is a
12    covered employee, 0.5% for a widow or survivors annuity
13    plus the following amount for retirement annuity: 5%
14    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
15    in 2004 and thereafter;
16        (6) Each security employee of the Department of
17    Corrections or of the Department of Human Services who is
18    not a covered employee, 1% for a widow or survivors annuity
19    plus the following amount for retirement annuity: 8.5%
20    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
21    11.5% in 2004 and thereafter.
22    (a-5) In addition to the contributions otherwise required
23under this Article, each member shall also make the following
24contributions for retirement annuity from each payment of
25compensation:
26        (1) beginning July 1, 2013 and through June 30, 2014,

 

 

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1    1% of compensation; and
2        (2) beginning on July 1, 2014, 2% of compensation.
3    (b) Contributions shall be in the form of a deduction from
4compensation and shall be made notwithstanding that the
5compensation paid in cash to the employee shall be reduced
6thereby below the minimum prescribed by law or regulation. Each
7member is deemed to consent and agree to the deductions from
8compensation provided for in this Article, and shall receipt in
9full for salary or compensation.
10(Source: P.A. 92-14, eff. 6-28-01.)
 
11    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
12    Sec. 15-136. Retirement annuities - Amount. The provisions
13of this Section 15-136 apply only to those participants who are
14participating in the traditional benefit package or the
15portable benefit package and do not apply to participants who
16are participating in the self-managed plan.
17    (a) The amount of a participant's retirement annuity,
18expressed in the form of a single-life annuity, shall be
19determined by whichever of the following rules is applicable
20and provides the largest annuity:
21    Rule 1: The retirement annuity shall be 1.67% of final rate
22of earnings for each of the first 10 years of service, 1.90%
23for each of the next 10 years of service, 2.10% for each year
24of service in excess of 20 but not exceeding 30, and 2.30% for
25each year in excess of 30; or for persons who retire on or

 

 

SB2368- 34 -LRB098 07118 EFG 37179 b

1after January 1, 1998, 2.2% of the final rate of earnings for
2each year of service.
3    Rule 2: The retirement annuity shall be the sum of the
4following, determined from amounts credited to the participant
5in accordance with the actuarial tables and the effective rate
6of interest in effect at the time the retirement annuity
7begins:
8        (i) the normal annuity which can be provided on an
9    actuarially equivalent basis, by the accumulated normal
10    contributions as of the date the annuity begins;
11        (ii) an annuity from employer contributions of an
12    amount equal to that which can be provided on an
13    actuarially equivalent basis from the accumulated normal
14    contributions made by the participant under Section
15    15-113.6 and Section 15-113.7 plus 1.4 times all other
16    accumulated normal contributions made by the participant;
17    and
18        (iii) the annuity that can be provided on an
19    actuarially equivalent basis from the entire contribution
20    made by the participant under Section 15-113.3.
21    With respect to a police officer or firefighter who retires
22on or after August 14, 1998, the accumulated normal
23contributions taken into account under clauses (i) and (ii) of
24this Rule 2 shall include the additional normal contributions
25made by the police officer or firefighter under Section
2615-157(a).

 

 

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1    The amount of a retirement annuity calculated under this
2Rule 2 shall be computed solely on the basis of the
3participant's accumulated normal contributions, as specified
4in this Rule and defined in Section 15-116. Neither an employee
5or employer contribution for early retirement under Section
615-136.2 nor any other employer contribution shall be used in
7the calculation of the amount of a retirement annuity under
8this Rule 2.
9    This amendatory Act of the 91st General Assembly is a
10clarification of existing law and applies to every participant
11and annuitant without regard to whether status as an employee
12terminates before the effective date of this amendatory Act.
13    This Rule 2 does not apply to a person who first becomes an
14employee under this Article on or after July 1, 2005.
15    Rule 3: The retirement annuity of a participant who is
16employed at least one-half time during the period on which his
17or her final rate of earnings is based, shall be equal to the
18participant's years of service not to exceed 30, multiplied by
19(1) $96 if the participant's final rate of earnings is less
20than $3,500, (2) $108 if the final rate of earnings is at least
21$3,500 but less than $4,500, (3) $120 if the final rate of
22earnings is at least $4,500 but less than $5,500, (4) $132 if
23the final rate of earnings is at least $5,500 but less than
24$6,500, (5) $144 if the final rate of earnings is at least
25$6,500 but less than $7,500, (6) $156 if the final rate of
26earnings is at least $7,500 but less than $8,500, (7) $168 if

 

 

SB2368- 36 -LRB098 07118 EFG 37179 b

1the final rate of earnings is at least $8,500 but less than
2$9,500, and (8) $180 if the final rate of earnings is $9,500 or
3more, except that the annuity for those persons having made an
4election under Section 15-154(a-1) shall be calculated and
5payable under the portable retirement benefit program pursuant
6to the provisions of Section 15-136.4.
7    Rule 4: A participant who is at least age 50 and has 25 or
8more years of service as a police officer or firefighter, and a
9participant who is age 55 or over and has at least 20 but less
10than 25 years of service as a police officer or firefighter,
11shall be entitled to a retirement annuity of 2 1/4% of the
12final rate of earnings for each of the first 10 years of
13service as a police officer or firefighter, 2 1/2% for each of
14the next 10 years of service as a police officer or
15firefighter, and 2 3/4% for each year of service as a police
16officer or firefighter in excess of 20. The retirement annuity
17for all other service shall be computed under Rule 1.
18    For purposes of this Rule 4, a participant's service as a
19firefighter shall also include the following:
20        (i) service that is performed while the person is an
21    employee under subsection (h) of Section 15-107; and
22        (ii) in the case of an individual who was a
23    participating employee employed in the fire department of
24    the University of Illinois's Champaign-Urbana campus
25    immediately prior to the elimination of that fire
26    department and who immediately after the elimination of

 

 

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1    that fire department transferred to another job with the
2    University of Illinois, service performed as an employee of
3    the University of Illinois in a position other than police
4    officer or firefighter, from the date of that transfer
5    until the employee's next termination of service with the
6    University of Illinois.
7    Rule 5: The retirement annuity of a participant who elected
8early retirement under the provisions of Section 15-136.2 and
9who, on or before February 16, 1995, brought administrative
10proceedings pursuant to the administrative rules adopted by the
11System to challenge the calculation of his or her retirement
12annuity shall be the sum of the following, determined from
13amounts credited to the participant in accordance with the
14actuarial tables and the prescribed rate of interest in effect
15at the time the retirement annuity begins:
16        (i) the normal annuity which can be provided on an
17    actuarially equivalent basis, by the accumulated normal
18    contributions as of the date the annuity begins; and
19        (ii) an annuity from employer contributions of an
20    amount equal to that which can be provided on an
21    actuarially equivalent basis from the accumulated normal
22    contributions made by the participant under Section
23    15-113.6 and Section 15-113.7 plus 1.4 times all other
24    accumulated normal contributions made by the participant;
25    and
26        (iii) an annuity which can be provided on an

 

 

SB2368- 38 -LRB098 07118 EFG 37179 b

1    actuarially equivalent basis from the employee
2    contribution for early retirement under Section 15-136.2,
3    and an annuity from employer contributions of an amount
4    equal to that which can be provided on an actuarially
5    equivalent basis from the employee contribution for early
6    retirement under Section 15-136.2.
7    In no event shall a retirement annuity under this Rule 5 be
8lower than the amount obtained by adding (1) the monthly amount
9obtained by dividing the combined employee and employer
10contributions made under Section 15-136.2 by the System's
11annuity factor for the age of the participant at the beginning
12of the annuity payment period and (2) the amount equal to the
13participant's annuity if calculated under Rule 1, reduced under
14Section 15-136(b) as if no contributions had been made under
15Section 15-136.2.
16    With respect to a participant who is qualified for a
17retirement annuity under this Rule 5 whose retirement annuity
18began before the effective date of this amendatory Act of the
1991st General Assembly, and for whom an employee contribution
20was made under Section 15-136.2, the System shall recalculate
21the retirement annuity under this Rule 5 and shall pay any
22additional amounts due in the manner provided in Section
2315-186.1 for benefits mistakenly set too low.
24    The amount of a retirement annuity calculated under this
25Rule 5 shall be computed solely on the basis of those
26contributions specifically set forth in this Rule 5. Except as

 

 

SB2368- 39 -LRB098 07118 EFG 37179 b

1provided in clause (iii) of this Rule 5, neither an employee
2nor employer contribution for early retirement under Section
315-136.2, nor any other employer contribution, shall be used in
4the calculation of the amount of a retirement annuity under
5this Rule 5.
6    The General Assembly has adopted the changes set forth in
7Section 25 of this amendatory Act of the 91st General Assembly
8in recognition that the decision of the Appellate Court for the
9Fourth District in Mattis v. State Universities Retirement
10System et al. might be deemed to give some right to the
11plaintiff in that case. The changes made by Section 25 of this
12amendatory Act of the 91st General Assembly are a legislative
13implementation of the decision of the Appellate Court for the
14Fourth District in Mattis v. State Universities Retirement
15System et al. with respect to that plaintiff.
16    The changes made by Section 25 of this amendatory Act of
17the 91st General Assembly apply without regard to whether the
18person is in service as an employee on or after its effective
19date.
20    (b) The retirement annuity provided under Rules 1 and 3
21above shall be reduced by 1/2 of 1% for each month the
22participant is under age 60 at the time of retirement. However,
23this reduction shall not apply in the following cases:
24        (1) For a disabled participant whose disability
25    benefits have been discontinued because he or she has
26    exhausted eligibility for disability benefits under clause

 

 

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1    (6) of Section 15-152;
2        (2) For a participant who has at least the number of
3    years of service required to retire at any age under
4    subsection (a) of Section 15-135; or
5        (3) For that portion of a retirement annuity which has
6    been provided on account of service of the participant
7    during periods when he or she performed the duties of a
8    police officer or firefighter, if these duties were
9    performed for at least 5 years immediately preceding the
10    date the retirement annuity is to begin.
11    (c) The maximum retirement annuity provided under Rules 1,
122, 4, and 5 shall be the lesser of (1) the annual limit of
13benefits as specified in Section 415 of the Internal Revenue
14Code of 1986, as such Section may be amended from time to time
15and as such benefit limits shall be adjusted by the
16Commissioner of Internal Revenue, and (2) 80% of final rate of
17earnings.
18    (d) Subject to the provisions of subsection (d-5):
19    An annuitant whose status as an employee terminates after
20August 14, 1969 shall receive automatic increases in his or her
21retirement annuity as follows:
22    Effective January 1 immediately following the date the
23retirement annuity begins, the annuitant shall receive an
24increase in his or her monthly retirement annuity of 0.125% of
25the monthly retirement annuity provided under Rule 1, Rule 2,
26Rule 3, Rule 4, or Rule 5, contained in this Section,

 

 

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1multiplied by the number of full months which elapsed from the
2date the retirement annuity payments began to January 1, 1972,
3plus 0.1667% of such annuity, multiplied by the number of full
4months which elapsed from January 1, 1972, or the date the
5retirement annuity payments began, whichever is later, to
6January 1, 1978, plus 0.25% of such annuity multiplied by the
7number of full months which elapsed from January 1, 1978, or
8the date the retirement annuity payments began, whichever is
9later, to the effective date of the increase.
10    The annuitant shall receive an increase in his or her
11monthly retirement annuity on each January 1 thereafter during
12the annuitant's life of 3% of the monthly annuity provided
13under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
14this Section. The change made under this subsection by P.A.
1581-970 is effective January 1, 1980 and applies to each
16annuitant whose status as an employee terminates before or
17after that date.
18    Beginning January 1, 1990 and until the effective date of
19this amendatory Act of the 98th General Assembly, all automatic
20annual increases payable under this Section shall be calculated
21as a percentage of the total annuity payable at the time of the
22increase, including all increases previously granted under
23this Article.
24    The change made in this subsection by P.A. 85-1008 is
25effective January 26, 1988, and is applicable without regard to
26whether status as an employee terminated before that date.

 

 

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1    (d-5) Notwithstanding any other provision of this Article,
2the amount of each automatic annual increase in retirement
3annuity occurring on or after the effective date of this
4amendatory Act of the 98th General Assembly shall be 3% or
5one-half of the annual unadjusted percentage increase, if any,
6in the Consumer Price Index-U for the 12 months ending with the
7preceding September, whichever is less, of the first $25,000 of
8the retirement annuity. For the purposes of this Section,
9"Consumer Price Index-U" means the index published by the
10Bureau of Labor Statistics of the United States Department of
11Labor that measures the average change in prices of goods and
12services purchased by all urban consumers, United States city
13average, all items, 1982-84 = 100. This limitation is
14applicable without regard to whether the annuitant was in
15service on or after that effective date.
16    (e) If, on January 1, 1987, or the date the retirement
17annuity payment period begins, whichever is later, the sum of
18the retirement annuity provided under Rule 1 or Rule 2 of this
19Section and the automatic annual increases provided under the
20preceding subsection or Section 15-136.1, amounts to less than
21the retirement annuity which would be provided by Rule 3, the
22retirement annuity shall be increased as of January 1, 1987, or
23the date the retirement annuity payment period begins,
24whichever is later, to the amount which would be provided by
25Rule 3 of this Section. Such increased amount shall be
26considered as the retirement annuity in determining benefits

 

 

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1provided under other Sections of this Article. This paragraph
2applies without regard to whether status as an employee
3terminated before the effective date of this amendatory Act of
41987, provided that the annuitant was employed at least
5one-half time during the period on which the final rate of
6earnings was based.
7    (f) A participant is entitled to such additional annuity as
8may be provided on an actuarially equivalent basis, by any
9accumulated additional contributions to his or her credit.
10However, the additional contributions made by the participant
11toward the automatic increases in annuity provided under this
12Section shall not be taken into account in determining the
13amount of such additional annuity.
14    (g) If, (1) by law, a function of a governmental unit, as
15defined by Section 20-107 of this Code, is transferred in whole
16or in part to an employer, and (2) a participant transfers
17employment from such governmental unit to such employer within
186 months after the transfer of the function, and (3) the sum of
19(A) the annuity payable to the participant under Rule 1, 2, or
203 of this Section (B) all proportional annuities payable to the
21participant by all other retirement systems covered by Article
2220, and (C) the initial primary insurance amount to which the
23participant is entitled under the Social Security Act, is less
24than the retirement annuity which would have been payable if
25all of the participant's pension credits validated under
26Section 20-109 had been validated under this system, a

 

 

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1supplemental annuity equal to the difference in such amounts
2shall be payable to the participant.
3    (h) On January 1, 1981, an annuitant who was receiving a
4retirement annuity on or before January 1, 1971 shall have his
5or her retirement annuity then being paid increased $1 per
6month for each year of creditable service. On January 1, 1982,
7an annuitant whose retirement annuity began on or before
8January 1, 1977, shall have his or her retirement annuity then
9being paid increased $1 per month for each year of creditable
10service.
11    (i) On January 1, 1987, any annuitant whose retirement
12annuity began on or before January 1, 1977, shall have the
13monthly retirement annuity increased by an amount equal to 8¢
14per year of creditable service times the number of years that
15have elapsed since the annuity began.
16(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
17    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
18    Sec. 15-155. Employer contributions.
19    (a) The State of Illinois shall make contributions by
20appropriations of amounts which, together with the other
21employer contributions from trust, federal, and other funds,
22employee contributions, income from investments, and other
23income of this System, will be sufficient to meet the cost of
24maintaining and administering the System on a 100% 90% funded
25basis in accordance with actuarial recommendations.

 

 

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1    The Board shall determine the amount of State contributions
2required for each fiscal year on the basis of the actuarial
3tables and other assumptions adopted by the Board and the
4recommendations of the actuary, using the formula in subsection
5(a-1).
6    (a-1) For State fiscal years 2012 through 2045, the minimum
7contribution to the System to be made by the State for each
8fiscal year shall be an amount determined by the System to be
9sufficient to bring the total assets of the System up to 100%
1090% of the total actuarial liabilities of the System by the end
11of State fiscal year 2045. In making these determinations, the
12required State contribution shall be calculated each year as a
13level percentage of payroll over the years remaining to and
14including fiscal year 2045 and shall be determined under the
15projected unit credit actuarial cost method.
16    Pursuant to Article XIII of the 1970 Constitution of the
17State of Illinois, beginning on July 1, 2013, the State shall,
18as a retirement benefit to each participant and annuitant of
19the System be contractually obligated to the System (as a
20fiduciary and trustee of the participants and annuitants) to
21pay the Annual Required State Contribution, as determined by
22the Board of the System using generally accepted actuarial
23principles, as is necessary to bring the total assets of the
24System up to 100% of the total actuarial liabilities of the
25System by the end of State fiscal year 2045. As a further
26retirement benefit and contractual obligation, each fiscal

 

 

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1year, the State shall pay to each designated retirement system
2the Annual Required State Contribution certified by the Board
3for that fiscal year. Payments of the Annual Required State
4Contribution for each fiscal year shall be made in equal
5monthly installments. This Section, and the security it
6provides to participants and annuitants is intended to be, and
7is, a contractual right that is part of the pension benefits
8provided to the participants and annuitants. Notwithstanding
9anything to the contrary in the Court of Claims Act or any
10other law, a designated retirement system has the exclusive
11right to and shall bring a Mandamus action in the Circuit Court
12of Champaign County against the State to compel the State to
13make any installment of the Annual Required State Contribution
14required by this Section, irrespective of other remedies that
15may be available to the System. Each member or annuitant of the
16System has the right to bring a Mandamus action against the
17System in the Circuit Court in any judicial district in which
18the System maintains an office if the System fails to bring an
19action specified in this Section, irrespective of other
20remedies that may be available to the member or annuitant.
21    Any payments required to be made by the State pursuant to
22this subsection (a-1) are expressly subordinated to the payment
23of the principal, interest, and premium, if any, on any bonded
24debt obligation of the State or any other State-created entity,
25either currently outstanding or to be issued, for which the
26source of repayment or security thereon is derived directly or

 

 

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1indirectly from tax revenues collected by the State or any
2other State-created entity. Payments on such bonded
3obligations include any statutory fund transfers or other
4prefunding mechanisms or formulas set forth, now or hereafter,
5in State law or bond indentures, into debt service funds or
6accounts of the State related to such bonded obligations,
7consistent with the payment schedules associated with such
8obligations.
9    For State fiscal years 1996 through 2005, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12so that by State fiscal year 2011, the State is contributing at
13the rate required under this Section.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2006 is
16$166,641,900.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2007 is
19$252,064,100.
20    For each of State fiscal years 2008 through 2009, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23from the required State contribution for State fiscal year
242007, so that by State fiscal year 2011, the State is
25contributing at the rate otherwise required under this Section.
26    Notwithstanding any other provision of this Article, the

 

 

SB2368- 48 -LRB098 07118 EFG 37179 b

1total required State contribution for State fiscal year 2010 is
2$702,514,000 and shall be made from the State Pensions Fund and
3proceeds of bonds sold in fiscal year 2010 pursuant to Section
47.2 of the General Obligation Bond Act, less (i) the pro rata
5share of bond sale expenses determined by the System's share of
6total bond proceeds, (ii) any amounts received from the General
7Revenue Fund in fiscal year 2010, (iii) any reduction in bond
8proceeds due to the issuance of discounted bonds, if
9applicable.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2011 is
12the amount recertified by the System on or before April 1, 2011
13pursuant to Section 15-165 and shall be made from the State
14Pensions Fund and proceeds of bonds sold in fiscal year 2011
15pursuant to Section 7.2 of the General Obligation Bond Act,
16less (i) the pro rata share of bond sale expenses determined by
17the System's share of total bond proceeds, (ii) any amounts
18received from the General Revenue Fund in fiscal year 2011, and
19(iii) any reduction in bond proceeds due to the issuance of
20discounted bonds, if applicable.
21    Beginning in State fiscal year 2046, the minimum State
22contribution for each fiscal year shall be the amount needed to
23maintain the total assets of the System at 100% 90% of the
24total actuarial liabilities of the System.
25    Amounts received by the System pursuant to Section 25 of
26the Budget Stabilization Act or Section 8.12 of the State

 

 

SB2368- 49 -LRB098 07118 EFG 37179 b

1Finance Act in any fiscal year do not reduce and do not
2constitute payment of any portion of the minimum State
3contribution required under this Article in that fiscal year.
4Such amounts shall not reduce, and shall not be included in the
5calculation of, the required State contributions under this
6Article in any future year until the System has reached a
7funding ratio of at least 90%. A reference in this Article to
8the "required State contribution" or any substantially similar
9term does not include or apply to any amounts payable to the
10System under Section 25 of the Budget Stabilization Act.
11    Notwithstanding any other provision of this Section, the
12required State contribution for State fiscal year 2005 and for
13fiscal year 2008 and each fiscal year thereafter, as calculated
14under this Section and certified under Section 15-165, shall
15not exceed an amount equal to (i) the amount of the required
16State contribution that would have been calculated under this
17Section for that fiscal year if the System had not received any
18payments under subsection (d) of Section 7.2 of the General
19Obligation Bond Act, minus (ii) the portion of the State's
20total debt service payments for that fiscal year on the bonds
21issued in fiscal year 2003 for the purposes of that Section
227.2, as determined and certified by the Comptroller, that is
23the same as the System's portion of the total moneys
24distributed under subsection (d) of Section 7.2 of the General
25Obligation Bond Act. In determining this maximum for State
26fiscal years 2008 through 2010, however, the amount referred to

 

 

SB2368- 50 -LRB098 07118 EFG 37179 b

1in item (i) shall be increased, as a percentage of the
2applicable employee payroll, in equal increments calculated
3from the sum of the required State contribution for State
4fiscal year 2007 plus the applicable portion of the State's
5total debt service payments for fiscal year 2007 on the bonds
6issued in fiscal year 2003 for the purposes of Section 7.2 of
7the General Obligation Bond Act, so that, by State fiscal year
82011, the State is contributing at the rate otherwise required
9under this Section.
10    (b) If an employee is paid from trust or federal funds, the
11employer shall pay to the Board contributions from those funds
12which are sufficient to cover the accruing normal costs on
13behalf of the employee. However, universities having employees
14who are compensated out of local auxiliary funds, income funds,
15or service enterprise funds are not required to pay such
16contributions on behalf of those employees. The local auxiliary
17funds, income funds, and service enterprise funds of
18universities shall not be considered trust funds for the
19purpose of this Article, but funds of alumni associations,
20foundations, and athletic associations which are affiliated
21with the universities included as employers under this Article
22and other employers which do not receive State appropriations
23are considered to be trust funds for the purpose of this
24Article.
25    (b-1) The City of Urbana and the City of Champaign shall
26each make employer contributions to this System for their

 

 

SB2368- 51 -LRB098 07118 EFG 37179 b

1respective firefighter employees who participate in this
2System pursuant to subsection (h) of Section 15-107. The rate
3of contributions to be made by those municipalities shall be
4determined annually by the Board on the basis of the actuarial
5assumptions adopted by the Board and the recommendations of the
6actuary, and shall be expressed as a percentage of salary for
7each such employee. The Board shall certify the rate to the
8affected municipalities as soon as may be practical. The
9employer contributions required under this subsection shall be
10remitted by the municipality to the System at the same time and
11in the same manner as employee contributions.
12    (c) Through State fiscal year 1995: The total employer
13contribution shall be apportioned among the various funds of
14the State and other employers, whether trust, federal, or other
15funds, in accordance with actuarial procedures approved by the
16Board. State of Illinois contributions for employers receiving
17State appropriations for personal services shall be payable
18from appropriations made to the employers or to the System. The
19contributions for Class I community colleges covering earnings
20other than those paid from trust and federal funds, shall be
21payable solely from appropriations to the Illinois Community
22College Board or the System for employer contributions.
23    (d) Beginning in State fiscal year 1996, the required State
24contributions to the System shall be appropriated directly to
25the System and shall be payable through vouchers issued in
26accordance with subsection (c) of Section 15-165, except as

 

 

SB2368- 52 -LRB098 07118 EFG 37179 b

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

 

 

SB2368- 53 -LRB098 07118 EFG 37179 b

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

 

 

SB2368- 54 -LRB098 07118 EFG 37179 b

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

 

 

SB2368- 55 -LRB098 07118 EFG 37179 b

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

 

 

SB2368- 56 -LRB098 07118 EFG 37179 b

1subsection (g) of this Section.
2    (j) The System shall prepare a report and file copies of
3the report with the Governor and the General Assembly by
4January 1, 2007 that contains all of the following information:
5        (1) The number of recalculations required by the
6    changes made to this Section by Public Act 94-1057 for each
7    employer.
8        (2) The dollar amount by which each employer's
9    contribution to the System was changed due to
10    recalculations required by Public Act 94-1057.
11        (3) The total amount the System received from each
12    employer as a result of the changes made to this Section by
13    Public Act 94-4.
14        (4) The increase in the required State contribution
15    resulting from the changes made to this Section by Public
16    Act 94-1057.
17    (k) The Illinois Community College Board shall adopt rules
18for recommending lists of promotional positions submitted to
19the Board by community colleges and for reviewing the
20promotional lists on an annual basis. When recommending
21promotional lists, the Board shall consider the similarity of
22the positions submitted to those positions recognized for State
23universities by the State Universities Civil Service System.
24The Illinois Community College Board shall file a copy of its
25findings with the System. The System shall consider the
26findings of the Illinois Community College Board when making

 

 

SB2368- 57 -LRB098 07118 EFG 37179 b

1determinations under this Section. The System shall not exclude
2any earnings increases resulting from a promotion when the
3promotion was not submitted by a community college. Nothing in
4this subsection (k) shall require any community college to
5submit any information to the Community College Board.
6    (l) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (m) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
237-13-12; revised 10-17-12.)
 
24    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
25    Sec. 15-157. Employee Contributions.

 

 

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1    (a) Each participating employee shall make contributions
2towards the retirement benefits payable under the retirement
3program applicable to the employee from each payment of
4earnings applicable to employment under this system on and
5after the date of becoming a participant as follows: Prior to
6September 1, 1949, 3 1/2% of earnings; from September 1, 1949
7to August 31, 1955, 5%; from September 1, 1955 to August 31,
81969, 6%; from September 1, 1969, 6 1/2%. These contributions
9are to be considered as normal contributions for purposes of
10this Article.
11    Each participant who is a police officer or firefighter
12shall make normal contributions of 8% of each payment of
13earnings applicable to employment as a police officer or
14firefighter under this system on or after September 1, 1981,
15unless he or she files with the board within 60 days after the
16effective date of this amendatory Act of 1991 or 60 days after
17the board receives notice that he or she is employed as a
18police officer or firefighter, whichever is later, a written
19notice waiving the retirement formula provided by Rule 4 of
20Section 15-136. This waiver shall be irrevocable. If a
21participant had met the conditions set forth in Section
2215-132.1 prior to the effective date of this amendatory Act of
231991 but failed to make the additional normal contributions
24required by this paragraph, he or she may elect to pay the
25additional contributions plus compound interest at the
26effective rate. If such payment is received by the board, the

 

 

SB2368- 59 -LRB098 07118 EFG 37179 b

1service shall be considered as police officer service in
2calculating the retirement annuity under Rule 4 of Section
315-136. While performing service described in clause (i) or
4(ii) of Rule 4 of Section 15-136, a participating employee
5shall be deemed to be employed as a firefighter for the purpose
6of determining the rate of employee contributions under this
7Section.
8    (b) Starting September 1, 1969, each participating
9employee shall make additional contributions of 1/2 of 1% of
10earnings to finance a portion of the cost of the annual
11increases in retirement annuity provided under Section 15-136,
12except that with respect to participants in the self-managed
13plan this additional contribution shall be used to finance the
14benefits obtained under that retirement program.
15    (c) In addition to the amounts described in subsections (a)
16and (b) of this Section, each participating employee shall make
17contributions of 1% of earnings applicable under this system on
18and after August 1, 1959. The contributions made under this
19subsection (c) shall be considered as survivor's insurance
20contributions for purposes of this Article if the employee is
21covered under the traditional benefit package, and such
22contributions shall be considered as additional contributions
23for purposes of this Article if the employee is participating
24in the self-managed plan or has elected to participate in the
25portable benefit package and has completed the applicable
26one-year waiting period. Contributions in excess of $80 during

 

 

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1any fiscal year beginning before August 31, 1969 and in excess
2of $120 during any fiscal year thereafter until September 1,
31971 shall be considered as additional contributions for
4purposes of this Article.
5    (c-5) In addition to the contributions otherwise required
6under this Article, each participant shall also make the
7following contributions toward the retirement benefits payable
8under the retirement program applicable to the employee from
9each payment of earnings applicable to employment under this
10system:
11        (1) beginning July 1, 2013 and through June 30, 2014,
12    1% of earnings; and
13        (2) beginning on July 1, 2014, 2% of earnings.
14    Except as otherwise specified, these contributions are to
15be considered as normal contributions for purposes of this
16Article.
17    (d) If the board by board rule so permits and subject to
18such conditions and limitations as may be specified in its
19rules, a participant may make other additional contributions of
20such percentage of earnings or amounts as the participant shall
21elect in a written notice thereof received by the board.
22    (e) That fraction of a participant's total accumulated
23normal contributions, the numerator of which is equal to the
24number of years of service in excess of that which is required
25to qualify for the maximum retirement annuity, and the
26denominator of which is equal to the total service of the

 

 

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1participant, shall be considered as accumulated additional
2contributions. The determination of the applicable maximum
3annuity and the adjustment in contributions required by this
4provision shall be made as of the date of the participant's
5retirement.
6    (f) Notwithstanding the foregoing, a participating
7employee shall not be required to make contributions under this
8Section after the date upon which continuance of such
9contributions would otherwise cause his or her retirement
10annuity to exceed the maximum retirement annuity as specified
11in clause (1) of subsection (c) of Section 15-136.
12    (g) A participating employee may make contributions for the
13purchase of service credit under this Article.
14(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
15eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
1690-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
17    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
18    Sec. 16-133.1. Automatic annual increase in annuity.
19    (a) Each member with creditable service and retiring on or
20after August 26, 1969 is entitled to the automatic annual
21increases in annuity provided under this Section while
22receiving a retirement annuity or disability retirement
23annuity from the system.
24    An annuitant shall first be entitled to an initial increase
25under this Section on the January 1 next following the first

 

 

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1anniversary of retirement, or January 1 of the year next
2following attainment of age 61, whichever is later. At such
3time, the system shall pay an initial increase determined as
4follows but subject to subsection (a-5):
5        (1) 1.5% of the originally granted retirement annuity
6    or disability retirement annuity multiplied by the number
7    of years elapsed, if any, from the date of retirement until
8    January 1, 1972, plus
9        (2) 2% of the originally granted annuity multiplied by
10    the number of years elapsed, if any, from the date of
11    retirement or January 1, 1972, whichever is later, until
12    January 1, 1978, plus
13        (3) 3% of the originally granted annuity multiplied by
14    the number of years elapsed from the date of retirement or
15    January 1, 1978, whichever is later, until the effective
16    date of the initial increase.
17However, the initial annual increase calculated under this
18Section for the recipient of a disability retirement annuity
19granted under Section 16-149.2 shall be reduced by an amount
20equal to the total of all increases in that annuity received
21under Section 16-149.5 (but not exceeding 100% of the amount of
22the initial increase otherwise provided under this Section).
23    Following the initial increase, automatic annual increases
24in annuity shall be payable on each January 1 thereafter during
25the lifetime of the annuitant, determined as a percentage of
26the originally granted retirement annuity or disability

 

 

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1retirement annuity for increases granted prior to January 1,
21990, and calculated as a percentage of the total amount of
3annuity, including previous increases under this Section, for
4increases granted on or after January 1, 1990, as follows: 1.5%
5for periods prior to January 1, 1972, 2% for periods after
6December 31, 1971 and prior to January 1, 1978, and 3% for
7periods after December 31, 1977.
8    (a-5) Notwithstanding any other provision of this Article,
9the amount of each automatic annual increase in retirement
10annuity occurring on or after the effective date of this
11amendatory Act of the 98th General Assembly shall be 3% or
12one-half of the annual unadjusted percentage increase, if any,
13in the Consumer Price Index-U for the 12 months ending with the
14preceding September, whichever is less, of the first $25,000 of
15the retirement annuity. For the purposes of this Section,
16"Consumer Price Index-U" means the index published by the
17Bureau of Labor Statistics of the United States Department of
18Labor that measures the average change in prices of goods and
19services purchased by all urban consumers, United States city
20average, all items, 1982-84 = 100. This limitation is
21applicable without regard to whether the annuitant was in
22service on or after that effective date.
23    (b) The automatic annual increases in annuity provided
24under this Section shall not be applicable unless a member has
25made contributions toward such increases for a period
26equivalent to one full year of creditable service. If a member

 

 

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1contributes for service performed after August 26, 1969 but the
2member becomes an annuitant before such contributions amount to
3one full year's contributions based on the salary at the date
4of retirement, he or she may pay the necessary balance of the
5contributions to the system and be eligible for the automatic
6annual increases in annuity provided under this Section.
7    (c) Each member shall make contributions toward the cost of
8the automatic annual increases in annuity as provided under
9Section 16-152.
10    (d) An annuitant receiving a retirement annuity or
11disability retirement annuity on July 1, 1969, who subsequently
12re-enters service as a teacher is eligible for the automatic
13annual increases in annuity provided under this Section if he
14or she renders at least one year of creditable service
15following the latest re-entry.
16    (e) In addition to the automatic annual increases in
17annuity provided under this Section, an annuitant who meets the
18service requirements of this Section and whose retirement
19annuity or disability retirement annuity began on or before
20January 1, 1971 shall receive, on January 1, 1981, an increase
21in the annuity then being paid of one dollar per month for each
22year of creditable service. On January 1, 1982, an annuitant
23whose retirement annuity or disability retirement annuity
24began on or before January 1, 1977 shall receive an increase in
25the annuity then being paid of one dollar per month for each
26year of creditable service.

 

 

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1    On January 1, 1987, any annuitant whose retirement annuity
2began on or before January 1, 1977, shall receive an increase
3in the monthly retirement annuity equal to 8¢ per year of
4creditable service times the number of years that have elapsed
5since the annuity began.
6(Source: P.A. 91-927, eff. 12-14-00.)
 
7    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)
8    Sec. 16-152. Contributions by members.
9    (a) Each member shall make contributions for membership
10service to this System as follows:
11        (1) Effective July 1, 1998, contributions of 7.50% of
12    salary towards the cost of the retirement annuity. Such
13    contributions shall be deemed "normal contributions".
14        (2) Effective July 1, 1969, contributions of 1/2 of 1%
15    of salary toward the cost of the automatic annual increase
16    in retirement annuity provided under Section 16-133.1.
17        (3) Effective July 24, 1959, contributions of 1% of
18    salary towards the cost of survivor benefits. Such
19    contributions shall not be credited to the individual
20    account of the member and shall not be subject to refund
21    except as provided under Section 16-143.2.
22        (4) Effective July 1, 2005, contributions of 0.40% of
23    salary toward the cost of the early retirement without
24    discount option provided under Section 16-133.2. This
25    contribution shall cease upon termination of the early

 

 

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1    retirement without discount option as provided in Section
2    16-176.
3    (a-5) In addition to the contributions otherwise required
4under this Article, each member shall also make the following
5contributions toward the cost of the retirement annuity from
6each payment of salary:
7        (1) beginning July 1, 2013 and through June 30, 2014,
8    1% of salary; and
9        (2) beginning on July 1, 2014, 2% of salary.
10    Except as otherwise specified, these contributions are to
11be considered as normal contributions for purposes of this
12Article.
13    (b) The minimum required contribution for any year of
14full-time teaching service shall be $192.
15    (c) Contributions shall not be required of any annuitant
16receiving a retirement annuity who is given employment as
17permitted under Section 16-118 or 16-150.1.
18    (d) A person who (i) was a member before July 1, 1998, (ii)
19retires with more than 34 years of creditable service, and
20(iii) does not elect to qualify for the augmented rate under
21Section 16-129.1 shall be entitled, at the time of retirement,
22to receive a partial refund of contributions made under this
23Section for service occurring after the later of June 30, 1998
24or attainment of 34 years of creditable service, in an amount
25equal to 1.00% of the salary upon which those contributions
26were based.

 

 

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1    (e) A member's contributions toward the cost of early
2retirement without discount made under item (a)(4) of this
3Section shall not be refunded if the member has elected early
4retirement without discount under Section 16-133.2 and has
5begun to receive a retirement annuity under this Article
6calculated in accordance with that election. Otherwise, a
7member's contributions toward the cost of early retirement
8without discount made under item (a)(4) of this Section shall
9be refunded according to whichever one of the following
10circumstances occurs first:
11        (1) The contributions shall be refunded to the member,
12    without interest, within 120 days after the member's
13    retirement annuity commences, if the member does not elect
14    early retirement without discount under Section 16-133.2.
15        (2) The contributions shall be included, without
16    interest, in any refund claimed by the member under Section
17    16-151.
18        (3) The contributions shall be refunded to the member's
19    designated beneficiary (or if there is no beneficiary, to
20    the member's estate), without interest, if the member dies
21    without having begun to receive a retirement annuity under
22    this Article.
23        (4) The contributions shall be refunded to the member,
24    without interest, within 120 days after the early
25    retirement without discount option provided under Section
26    16-133.2 is terminated under Section 16-176.

 

 

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1(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
2    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
3    Sec. 16-158. Contributions by State and other employing
4units.
5    (a) The State shall make contributions to the System by
6means of appropriations from the Common School Fund and other
7State funds of amounts which, together with other employer
8contributions, employee contributions, investment income, and
9other income, will be sufficient to meet the cost of
10maintaining and administering the System on a 100% 90% funded
11basis in accordance with actuarial recommendations.
12    Subject to the conditions set forth in subsection (b-4),
13the employers under this Article shall be responsible for
14paying a portion of the normal costs of the System beginning in
15State fiscal year 2014 and all of the normal costs of the
16System beginning in State fiscal year 2023.
17    The Board shall determine the amount of State contributions
18required for each fiscal year on the basis of the actuarial
19tables and other assumptions adopted by the Board and the
20recommendations of the actuary, using the formula in subsection
21(b-3).
22    (a-1) Annually, on or before November 15 until November 15,
232011, the Board shall certify to the Governor the amount of the
24required State contribution for the coming fiscal year. The
25certification under this subsection (a-1) shall include a copy

 

 

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1of the actuarial recommendations upon which it is based and
2shall specifically identify the System's projected State
3normal cost for that fiscal year.
4    On or before May 1, 2004, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2005, taking
7into account the amounts appropriated to and received by the
8System under subsection (d) of Section 7.2 of the General
9Obligation Bond Act.
10    On or before July 1, 2005, the Board shall recalculate and
11recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2006, taking
13into account the changes in required State contributions made
14by this amendatory Act of the 94th General Assembly.
15    On or before April 1, 2011, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2011, applying
18the changes made by Public Act 96-889 to the System's assets
19and liabilities as of June 30, 2009 as though Public Act 96-889
20was approved on that date.
21    (a-5) On or before November 1 of each year, beginning
22November 1, 2012, the Board shall submit to the State Actuary,
23the Governor, and the General Assembly a proposed certification
24of the amount of the required State contribution to the System
25for the next fiscal year, along with all of the actuarial
26assumptions, calculations, and data upon which that proposed

 

 

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1certification is based. On or before January 1 of each year,
2beginning January 1, 2013, the State Actuary shall issue a
3preliminary report concerning the proposed certification and
4identifying, if necessary, recommended changes in actuarial
5assumptions that the Board must consider before finalizing its
6certification of the required State contributions. On or before
7January 15, 2013 and each January 15 thereafter, the Board
8shall certify to the Governor and the General Assembly the
9amount of the required State contribution for the next fiscal
10year. The Board's certification must note any deviations from
11the State Actuary's recommended changes, the reason or reasons
12for not following the State Actuary's recommended changes, and
13the fiscal impact of not following the State Actuary's
14recommended changes on the required State contribution.
15    (b) Through State fiscal year 1995, the State contributions
16shall be paid to the System in accordance with Section 18-7 of
17the School Code.
18    (b-1) Beginning in State fiscal year 1996, on the 15th day
19of each month, or as soon thereafter as may be practicable, the
20Board shall submit vouchers for payment of State contributions
21to the System, in a total monthly amount of one-twelfth of the
22required annual State contribution certified under subsection
23(a-1). From the effective date of this amendatory Act of the
2493rd General Assembly through June 30, 2004, the Board shall
25not submit vouchers for the remainder of fiscal year 2004 in
26excess of the fiscal year 2004 certified contribution amount

 

 

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1determined under this Section after taking into consideration
2the transfer to the System under subsection (a) of Section
36z-61 of the State Finance Act. These vouchers shall be paid by
4the State Comptroller and Treasurer by warrants drawn on the
5funds appropriated to the System for that fiscal year.
6    If in any month the amount remaining unexpended from all
7other appropriations to the System for the applicable fiscal
8year (including the appropriations to the System under Section
98.12 of the State Finance Act and Section 1 of the State
10Pension Funds Continuing Appropriation Act) is less than the
11amount lawfully vouchered under this subsection, the
12difference shall be paid from the Common School Fund under the
13continuing appropriation authority provided in Section 1.1 of
14the State Pension Funds Continuing Appropriation Act.
15    (b-2) Allocations from the Common School Fund apportioned
16to school districts not coming under this System shall not be
17diminished or affected by the provisions of this Article.
18    (b-3) For State fiscal years 2012 through 2045, the minimum
19contribution to the System to be made by the State for each
20fiscal year shall be an amount determined by the System to be
21sufficient to bring the total assets of the System up to 100%
2290% of the total actuarial liabilities of the System by the end
23of State fiscal year 2045. In making these determinations, the
24required State contribution shall be calculated each year as a
25level percentage of payroll over the years remaining to and
26including fiscal year 2045 and shall be determined under the

 

 

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1projected unit credit actuarial cost method.
2    Pursuant to Article XIII of the 1970 Constitution of the
3State of Illinois, beginning on July 1, 2013, the State shall,
4as a retirement benefit to each participant and annuitant of
5the System be contractually obligated to the System (as a
6fiduciary and trustee of the participants and annuitants) to
7pay the Annual Required State Contribution, as determined by
8the Board of the System using generally accepted actuarial
9principles, as is necessary to bring the total assets of the
10System up to 100% of the total actuarial liabilities of the
11System by the end of State fiscal year 2045. As a further
12retirement benefit and contractual obligation, each fiscal
13year, the State shall pay to each designated retirement system
14the Annual Required State Contribution certified by the Board
15for that fiscal year. Payments of the Annual Required State
16Contribution for each fiscal year shall be made in equal
17monthly installments. This Section, and the security it
18provides to participants and annuitants is intended to be, and
19is, a contractual right that is part of the pension benefits
20provided to the participants and annuitants. Notwithstanding
21anything to the contrary in the Court of Claims Act or any
22other law, a designated retirement system has the exclusive
23right to and shall bring a Mandamus action in the Circuit Court
24of Champaign County against the State to compel the State to
25make any installment of the Annual Required State Contribution
26required by this Section, irrespective of other remedies that

 

 

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1may be available to the System. Each member or annuitant of the
2System has the right to bring a Mandamus action against the
3System in the Circuit Court in any judicial district in which
4the System maintains an office if the System fails to bring an
5action specified in this Section, irrespective of other
6remedies that may be available to the member or annuitant.
7    Any payments required to be made by the State pursuant to
8this subsection (b-3) are expressly subordinated to the payment
9of the principal, interest, and premium, if any, on any bonded
10debt obligation of the State or any other State-created entity,
11either currently outstanding or to be issued, for which the
12source of repayment or security thereon is derived directly or
13indirectly from tax revenues collected by the State or any
14other State-created entity. Payments on such bonded
15obligations include any statutory fund transfers or other
16prefunding mechanisms or formulas set forth, now or hereafter,
17in State law or bond indentures, into debt service funds or
18accounts of the State related to such bonded obligations,
19consistent with the payment schedules associated with such
20obligations.
21    For State fiscal years 1996 through 2005, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24so that by State fiscal year 2011, the State is contributing at
25the rate required under this Section; except that in the
26following specified State fiscal years, the State contribution

 

 

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1to the System shall not be less than the following indicated
2percentages of the applicable employee payroll, even if the
3indicated percentage will produce a State contribution in
4excess of the amount otherwise required under this subsection
5and subsection (a), and notwithstanding any contrary
6certification made under subsection (a-1) before the effective
7date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
8in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
92003; and 13.56% in FY 2004.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2006 is
12$534,627,700.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$738,014,500.
16    For each of State fiscal years 2008 through 2009, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19from the required State contribution for State fiscal year
202007, so that by State fiscal year 2011, the State is
21contributing at the rate otherwise required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010 is
24$2,089,268,000 and shall be made from the proceeds of bonds
25sold in fiscal year 2010 pursuant to Section 7.2 of the General
26Obligation Bond Act, less (i) the pro rata share of bond sale

 

 

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1expenses determined by the System's share of total bond
2proceeds, (ii) any amounts received from the Common School Fund
3in fiscal year 2010, and (iii) any reduction in bond proceeds
4due to the issuance of discounted bonds, if applicable.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2011 is
7the amount recertified by the System on or before April 1, 2011
8pursuant to subsection (a-1) of this Section and shall be made
9from the proceeds of bonds sold in fiscal year 2011 pursuant to
10Section 7.2 of the General Obligation Bond Act, less (i) the
11pro rata share of bond sale expenses determined by the System's
12share of total bond proceeds, (ii) any amounts received from
13the Common School Fund in fiscal year 2011, and (iii) any
14reduction in bond proceeds due to the issuance of discounted
15bonds, if applicable. This amount shall include, in addition to
16the amount certified by the System, an amount necessary to meet
17employer contributions required by the State as an employer
18under paragraph (e) of this Section, which may also be used by
19the System for contributions required by paragraph (a) of
20Section 16-127.
21    Beginning in State fiscal year 2046, the minimum State
22contribution for each fiscal year shall be the amount needed to
23maintain the total assets of the System at 100% 90% of the
24total actuarial liabilities of the System.
25    Amounts received by the System pursuant to Section 25 of
26the Budget Stabilization Act or Section 8.12 of the State

 

 

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1Finance Act in any fiscal year do not reduce and do not
2constitute payment of any portion of the minimum State
3contribution required under this Article in that fiscal year.
4Such amounts shall not reduce, and shall not be included in the
5calculation of, the required State contributions under this
6Article in any future year until the System has reached a
7funding ratio of at least 90%. A reference in this Article to
8the "required State contribution" or any substantially similar
9term does not include or apply to any amounts payable to the
10System under Section 25 of the Budget Stabilization Act.
11    Notwithstanding any other provision of this Section, the
12required State contribution for State fiscal year 2005 and for
13fiscal year 2008 and each fiscal year thereafter, as calculated
14under this Section and certified under subsection (a-1), shall
15not exceed an amount equal to (i) the amount of the required
16State contribution that would have been calculated under this
17Section for that fiscal year if the System had not received any
18payments under subsection (d) of Section 7.2 of the General
19Obligation Bond Act, minus (ii) the portion of the State's
20total debt service payments for that fiscal year on the bonds
21issued in fiscal year 2003 for the purposes of that Section
227.2, as determined and certified by the Comptroller, that is
23the same as the System's portion of the total moneys
24distributed under subsection (d) of Section 7.2 of the General
25Obligation Bond Act. In determining this maximum for State
26fiscal years 2008 through 2010, however, the amount referred to

 

 

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1in item (i) shall be increased, as a percentage of the
2applicable employee payroll, in equal increments calculated
3from the sum of the required State contribution for State
4fiscal year 2007 plus the applicable portion of the State's
5total debt service payments for fiscal year 2007 on the bonds
6issued in fiscal year 2003 for the purposes of Section 7.2 of
7the General Obligation Bond Act, so that, by State fiscal year
82011, the State is contributing at the rate otherwise required
9under this Section.
10    (b-4) Beginning in State fiscal year 2014, the minimum
11required contribution of employers under this Article shall be
12the following percentages of payroll, but only if, for the
13specified State fiscal year, the State provides full funding at
14the State fiscal year 2010 level for the mandates set forth in
15the School Breakfast and Lunch Program Act and Article 14 and
16Sections 18-3, 18-4.3, and 29-5 of the School Code:
17        (i) for State fiscal year 2014, 0.5% of the- employer's
18    payroll for that fiscal year;
19        (ii) for State fiscal year 2015, 1.0% of the employer's
20    payroll for that fiscal year; and
21        (iii) for State fiscal year 2016, 2.0% of the
22    employer's payroll for that fiscal year;
23        (iv) for State fiscal year 2017, 3.0% of the employer's
24    payroll for that fiscal year;
25        (v) for State fiscal year 2018, 4.0% of the employer's
26    payroll for that fiscal year;

 

 

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1        (vi) for State fiscal year 2019, 5.0% of the employer's
2    payroll for that fiscal year;
3        (vii) for State fiscal year 2020, 6.0% of the
4    employer's payroll for that fiscal year;
5        (viii) for State fiscal year 2021, 7.0% of the
6    employer's payroll for that fiscal year;
7        (ix) for State fiscal year 2022, 8.0% of the employer's
8    payroll for that fiscal year; and
9        (x) for State fiscal year 2023 and each State fiscal
10    year thereafter, 9.0% of the employer's payroll for that
11    fiscal year.
12    If the State does not provide, for a State fiscal year,
13full funding at the State fiscal year 2010 level for the
14mandates set forth in the School Breakfast and Lunch Program
15Act and Article 14 and Sections 18-3, 18-4.3, and 29-5 of the
16School Code, then the employers shall not be required to make a
17contribution under this subsection (b-4) for that State fiscal
18year.
19    Notwithstanding any other provision of this subsection
20(b-4), the minimum required contribution under this Section for
21a fiscal year shall not exceed the System's normal costs for
22that year.
23    Whenever it determines that a payment is or may be required
24under this subsection (b-4), the System shall calculate the
25amount of the payment and bill the employer for that amount.
26The bill shall specify the calculations used to determine the

 

 

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1amount due. If the employer disputes the amount of the bill, it
2may, within 30 days after receipt of the bill, apply to the
3System in writing for a recalculation. The application must
4specify in detail the grounds of the dispute. Upon receiving a
5timely application for recalculation, the System shall review
6the application and, if appropriate, recalculate the amount
7due.
8    The employer contributions required under this subsection
9(b-4) may be paid in the form of a lump sum within 90 days after
10receipt of the bill. If the employer contributions are not paid
11within 90 days after receipt of the bill, then interest will be
12charged at a rate equal to the System's annual actuarially
13assumed rate of return on investment compounded annually from
14the 91st day after receipt of the bill. Payments must be
15concluded within 3 years after the employer's receipt of the
16bill.
17    The purpose of this subsection (b-4) is to shift certain
18pension-related costs to employers while lessening the effects
19of unfunded State mandates in order to ensure the financial
20stability of affected employers.
21    (c) Payment of the required State contributions and of all
22pensions, retirement annuities, death benefits, refunds, and
23other benefits granted under or assumed by this System, and all
24expenses in connection with the administration and operation
25thereof, are obligations of the State.
26    If members are paid from special trust or federal funds

 

 

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

 

 

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

 

 

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1    The additional 1% employee contribution required under
2Section 16-152 by this amendatory Act of 1998 is the
3responsibility of the teacher and not the teacher's employer,
4unless the employer agrees, through collective bargaining or
5otherwise, to make the contribution on behalf of the teacher.
6    If an employer is required by a contract in effect on May
71, 1998 between the employer and an employee organization to
8pay, on behalf of all its full-time employees covered by this
9Article, all mandatory employee contributions required under
10this Article, then the employer shall be excused from paying
11the employer contribution required under this subsection (e)
12for the balance of the term of that contract. The employer and
13the employee organization shall jointly certify to the System
14the existence of the contractual requirement, in such form as
15the System may prescribe. This exclusion shall cease upon the
16termination, extension, or renewal of the contract at any time
17after May 1, 1998.
18    (f) If the amount of a teacher's salary for any school year
19used to determine final average salary exceeds the member's
20annual full-time salary rate with the same employer for the
21previous school year by more than 6%, the teacher's employer
22shall pay to the System, in addition to all other payments
23required under this Section and in accordance with guidelines
24established by the System, the present value of the increase in
25benefits resulting from the portion of the increase in salary
26that is in excess of 6%. This present value shall be computed

 

 

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1by the System on the basis of the actuarial assumptions and
2tables used in the most recent actuarial valuation of the
3System that is available at the time of the computation. If a
4teacher's salary for the 2005-2006 school year is used to
5determine final average salary under this subsection (f), then
6the changes made to this subsection (f) by Public Act 94-1057
7shall apply in calculating whether the increase in his or her
8salary is in excess of 6%. For the purposes of this Section,
9change in employment under Section 10-21.12 of the School Code
10on or after June 1, 2005 shall constitute a change in employer.
11The System may require the employer to provide any pertinent
12information or documentation. The changes made to this
13subsection (f) by this amendatory Act of the 94th General
14Assembly apply without regard to whether the teacher was in
15service on or after its effective date.
16    Whenever it determines that a payment is or may be required
17under this subsection, the System shall calculate the amount of
18the payment and bill the employer for that amount. The bill
19shall specify the calculations used to determine the amount
20due. If the employer disputes the amount of the bill, it may,
21within 30 days after receipt of the bill, apply to the System
22in writing for a recalculation. The application must specify in
23detail the grounds of the dispute and, if the employer asserts
24that the calculation is subject to subsection (g) or (h) of
25this Section, must include an affidavit setting forth and
26attesting to all facts within the employer's knowledge that are

 

 

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1pertinent to the applicability of that subsection. Upon
2receiving a timely application for recalculation, the System
3shall review the application and, if appropriate, recalculate
4the amount due.
5    The employer contributions required under this subsection
6(f) may be paid in the form of a lump sum within 90 days after
7receipt of the bill. If the employer contributions are not paid
8within 90 days after receipt of the bill, then interest will be
9charged at a rate equal to the System's annual actuarially
10assumed rate of return on investment compounded annually from
11the 91st day after receipt of the bill. Payments must be
12concluded within 3 years after the employer's receipt of the
13bill.
14    (g) This subsection (g) applies only to payments made or
15salary increases given on or after June 1, 2005 but before July
161, 2011. The changes made by Public Act 94-1057 shall not
17require the System to refund any payments received before July
1831, 2006 (the effective date of Public Act 94-1057).
19    When assessing payment for any amount due under subsection
20(f), the System shall exclude salary increases paid to teachers
21under contracts or collective bargaining agreements entered
22into, amended, or renewed before June 1, 2005.
23    When assessing payment for any amount due under subsection
24(f), the System shall exclude salary increases paid to a
25teacher at a time when the teacher is 10 or more years from
26retirement eligibility under Section 16-132 or 16-133.2.

 

 

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

 

 

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1the State of Illinois or the State Board of Education over
2which the employer does not have discretion, notwithstanding
3that the payment is included in the computation of final
4average salary.
5    (h) When assessing payment for any amount due under
6subsection (f), the System shall exclude any salary increase
7described in subsection (g) of this Section given on or after
8July 1, 2011 but before July 1, 2014 under a contract or
9collective bargaining agreement entered into, amended, or
10renewed on or after June 1, 2005 but before July 1, 2011.
11Notwithstanding any other provision of this Section, any
12payments made or salary increases given after June 30, 2014
13shall be used in assessing payment for any amount due under
14subsection (f) of this Section.
15    (i) The System shall prepare a report and file copies of
16the report with the Governor and the General Assembly by
17January 1, 2007 that contains all of the following information:
18        (1) The number of recalculations required by the
19    changes made to this Section by Public Act 94-1057 for each
20    employer.
21        (2) The dollar amount by which each employer's
22    contribution to the System was changed due to
23    recalculations required by Public Act 94-1057.
24        (3) The total amount the System received from each
25    employer as a result of the changes made to this Section by
26    Public Act 94-4.

 

 

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1        (4) The increase in the required State contribution
2    resulting from the changes made to this Section by Public
3    Act 94-1057.
4    (j) For purposes of determining the required State
5contribution to the System, the value of the System's assets
6shall be equal to the actuarial value of the System's assets,
7which shall be calculated as follows:
8    As of June 30, 2008, the actuarial value of the System's
9assets shall be equal to the market value of the assets as of
10that date. In determining the actuarial value of the System's
11assets for fiscal years after June 30, 2008, any actuarial
12gains or losses from investment return incurred in a fiscal
13year shall be recognized in equal annual amounts over the
145-year period following that fiscal year.
15    (k) For purposes of determining the required State
16contribution to the system for a particular year, the actuarial
17value of assets shall be assumed to earn a rate of return equal
18to the system's actuarially assumed rate of return.
19(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2096-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
216-18-12; 97-813, eff. 7-13-12.)
 
22    (40 ILCS 5/18-125.1)  (from Ch. 108 1/2, par. 18-125.1)
23    Sec. 18-125.1. Automatic increase in retirement annuity.
24(a) A participant who retires from service after June 30, 1969,
25shall, in January of the year next following the year in which

 

 

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1the first anniversary of retirement occurs, and in January of
2each year thereafter, have the amount of his or her originally
3granted retirement annuity increased as follows, but subject to
4subsection (a-5): for each year up to and including 1971, 1
51/2%; for each year from 1972 through 1979 inclusive, 2%; and
6for 1980 and each year thereafter, 3%.
7    (a-5) Notwithstanding any other provision of this Article,
8the amount of each automatic annual increase in retirement
9annuity occurring on or after the effective date of this
10amendatory Act of the 98th General Assembly shall be 3% or
11one-half of the annual unadjusted percentage increase, if any,
12in the Consumer Price Index-U for the 12 months ending with the
13preceding September, whichever is less, of the first $25,000 of
14the retirement annuity. For the purposes of this Section,
15"Consumer Price Index-U" means the index published by the
16Bureau of Labor Statistics of the United States Department of
17Labor that measures the average change in prices of goods and
18services purchased by all urban consumers, United States city
19average, all items, 1982-84 = 100. This limitation is
20applicable without regard to whether the annuitant was in
21service on or after that effective date.
22    (b) Subject to subsection (a-5), but notwithstanding
23Notwithstanding any other provision of this Article, a
24retirement annuity for a participant who first serves as a
25judge on or after January 1, 2011 (the effective date of Public
26Act 96-889) shall be increased in January of the year next

 

 

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1following the year in which the first anniversary of retirement
2occurs, but in no event prior to age 67, and in January of each
3year thereafter, by an amount equal to 3% or the annual
4percentage increase in the consumer price index-u as determined
5by the Public Pension Division of the Department of Insurance
6under subsection (b-5) of Section 18-125, whichever is less, of
7the retirement annuity then being paid.
8    (c) This Section is not applicable to a participant who
9retires before he or she has made contributions at the rate
10prescribed in Section 18-133 for automatic increases for not
11less than the equivalent of one full year, unless such a
12participant arranges to pay the system the amount required to
13bring the total contributions for the automatic increase to the
14equivalent of one year's contribution based upon his or her
15last year's salary.
16    (d) This Section is applicable to all participants in
17service after June 30, 1969 unless a participant has elected,
18prior to September 1, 1969, in a written direction filed with
19the board not to be subject to the provisions of this Section.
20Any participant in service on or after July 1, 1992 shall have
21the option of electing prior to April 1, 1993, in a written
22direction filed with the board, to be covered by the provisions
23of the 1969 amendatory Act. Such participant shall be required
24to make the aforesaid additional contributions with compound
25interest at 4% per annum.
26    (e) Any participant who has become eligible to receive the

 

 

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1maximum rate of annuity and who resumes service as a judge
2after receiving a retirement annuity under this Article shall
3have the amount of his or her retirement annuity increased by
43% of the originally granted annuity amount for each year of
5such resumed service, beginning in January of the year next
6following the date of such resumed service, upon subsequent
7termination of such resumed service.
8    (f) Beginning January 1, 1990 and until the effective date
9of this amendatory Act of the 98th General Assembly, all
10automatic annual increases payable under this Section shall be
11calculated as a percentage of the total annuity payable at the
12time of the increase, including previous increases granted
13under this Article.
14(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
15    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
16    Sec. 18-131. Financing; employer contributions.
17    (a) The State of Illinois shall make contributions to this
18System by appropriations of the amounts which, together with
19the contributions of participants, net earnings on
20investments, and other income, will meet the costs of
21maintaining and administering this System on a 100% 90% funded
22basis in accordance with actuarial recommendations.
23    (b) The Board shall determine the amount of State
24contributions required for each fiscal year on the basis of the
25actuarial tables and other assumptions adopted by the Board and

 

 

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1the prescribed rate of interest, using the formula in
2subsection (c).
3    (c) For State fiscal years 2012 through 2045, the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6sufficient to bring the total assets of the System up to 100%
790% of the total actuarial liabilities of the System by the end
8of State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of payroll over the years remaining to and
11including fiscal year 2045 and shall be determined under the
12projected unit credit actuarial cost method.
13    Pursuant to Article XIII of the 1970 Constitution of the
14State of Illinois, beginning on July 1, 2013, the State shall,
15as a retirement benefit to each participant and annuitant of
16the System be contractually obligated to the System (as a
17fiduciary and trustee of the participants and annuitants) to
18pay the Annual Required State Contribution, as determined by
19the Board of the System using generally accepted actuarial
20principles, as is necessary to bring the total assets of the
21System up to 100% of the total actuarial liabilities of the
22System by the end of State fiscal year 2045. As a further
23retirement benefit and contractual obligation, each fiscal
24year, the State shall pay to each designated retirement system
25the Annual Required State Contribution certified by the Board
26for that fiscal year. Payments of the Annual Required State

 

 

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1Contribution for each fiscal year shall be made in equal
2monthly installments. This Section, and the security it
3provides to participants and annuitants is intended to be, and
4is, a contractual right that is part of the pension benefits
5provided to the participants and annuitants. Notwithstanding
6anything to the contrary in the Court of Claims Act or any
7other law, a designated retirement system has the exclusive
8right to and shall bring a Mandamus action in the Circuit Court
9of Champaign County against the State to compel the State to
10make any installment of the Annual Required State Contribution
11required by this Section, irrespective of other remedies that
12may be available to the System. Each member or annuitant of the
13System has the right to bring a Mandamus action against the
14System in the Circuit Court in any judicial district in which
15the System maintains an office if the System fails to bring an
16action specified in this Section, irrespective of other
17remedies that may be available to the member or annuitant.
18    Any payments required to be made by the State pursuant to
19this subsection (c) are expressly subordinated to the payment
20of the principal, interest, and premium, if any, on any bonded
21debt obligation of the State or any other State-created entity,
22either currently outstanding or to be issued, for which the
23source of repayment or security thereon is derived directly or
24indirectly from tax revenues collected by the State or any
25other State-created entity. Payments on such bonded
26obligations include any statutory fund transfers or other

 

 

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1prefunding mechanisms or formulas set forth, now or hereafter,
2in State law or bond indentures, into debt service funds or
3accounts of the State related to such bonded obligations,
4consistent with the payment schedules associated with such
5obligations.
6    For State fiscal years 1996 through 2005, the State
7contribution to the System, as a percentage of the applicable
8employee payroll, shall be increased in equal annual increments
9so that by State fiscal year 2011, the State is contributing at
10the rate required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2006 is
13$29,189,400.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2007 is
16$35,236,800.
17    For each of State fiscal years 2008 through 2009, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20from the required State contribution for State fiscal year
212007, so that by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2010 is
25$78,832,000 and shall be made from the proceeds of bonds sold
26in fiscal year 2010 pursuant to Section 7.2 of the General

 

 

SB2368- 94 -LRB098 07118 EFG 37179 b

1Obligation Bond Act, less (i) the pro rata share of bond sale
2expenses determined by the System's share of total bond
3proceeds, (ii) any amounts received from the General Revenue
4Fund in fiscal year 2010, and (iii) any reduction in bond
5proceeds due to the issuance of discounted bonds, if
6applicable.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2011 is
9the amount recertified by the System on or before April 1, 2011
10pursuant to Section 18-140 and shall be made from the proceeds
11of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
12the General Obligation Bond Act, less (i) the pro rata share of
13bond sale expenses determined by the System's share of total
14bond proceeds, (ii) any amounts received from the General
15Revenue Fund in fiscal year 2011, and (iii) any reduction in
16bond proceeds due to the issuance of discounted bonds, if
17applicable.
18    Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 100% 90% of the
21total actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

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1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 90%. A reference in this Article to
5the "required State contribution" or any substantially similar
6term does not include or apply to any amounts payable to the
7System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter, as calculated
11under this Section and certified under Section 18-140, shall
12not exceed an amount equal to (i) the amount of the required
13State contribution that would have been calculated under this
14Section for that fiscal year if the System had not received any
15payments under subsection (d) of Section 7.2 of the General
16Obligation Bond Act, minus (ii) the portion of the State's
17total debt service payments for that fiscal year on the bonds
18issued in fiscal year 2003 for the purposes of that Section
197.2, as determined and certified by the Comptroller, that is
20the same as the System's portion of the total moneys
21distributed under subsection (d) of Section 7.2 of the General
22Obligation Bond Act. In determining this maximum for State
23fiscal years 2008 through 2010, however, the amount referred to
24in item (i) shall be increased, as a percentage of the
25applicable employee payroll, in equal increments calculated
26from the sum of the required State contribution for State

 

 

SB2368- 96 -LRB098 07118 EFG 37179 b

1fiscal year 2007 plus the applicable portion of the State's
2total debt service payments for fiscal year 2007 on the bonds
3issued in fiscal year 2003 for the purposes of Section 7.2 of
4the General Obligation Bond Act, so that, by State fiscal year
52011, the State is contributing at the rate otherwise required
6under this Section.
7    (d) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (e) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
247-13-12.)
 
25    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)

 

 

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1    Sec. 18-133. Financing; employee contributions.
2    (a) Effective July 1, 1967, each participant is required to
3contribute 7 1/2% of each payment of salary toward the
4retirement annuity. Such contributions shall continue during
5the entire time the participant is in service, with the
6following exceptions:
7        (1) Contributions for the retirement annuity are not
8    required on salary received after 18 years of service by
9    persons who were participants before January 2, 1954.
10        (2) A participant who continues to serve as a judge
11    after becoming eligible to receive the maximum rate of
12    annuity may elect, through a written direction filed with
13    the Board, to discontinue contributing to the System. Any
14    such option elected by a judge shall be irrevocable unless
15    prior to January 1, 2000, and while continuing to serve as
16    judge, the judge (A) files with the Board a letter
17    cancelling the direction to discontinue contributing to
18    the System and requesting that such contributing resume,
19    and (B) pays into the System an amount equal to the total
20    of the discontinued contributions plus interest thereon at
21    5% per annum. Service credits earned in any other
22    "participating system" as defined in Article 20 of this
23    Code shall be considered for purposes of determining a
24    judge's eligibility to discontinue contributions under
25    this subdivision (a)(2).
26        (3) A participant who (i) has attained age 60, (ii)

 

 

SB2368- 98 -LRB098 07118 EFG 37179 b

1    continues to serve as a judge after becoming eligible to
2    receive the maximum rate of annuity, and (iii) has not
3    elected to discontinue contributing to the System under
4    subdivision (a)(2) of this Section (or has revoked any such
5    election) may elect, through a written direction filed with
6    the Board, to make contributions to the System based only
7    on the amount of the increases in salary received by the
8    judge on or after the date of the election, rather than the
9    total salary received. If a judge who is making
10    contributions to the System on the effective date of this
11    amendatory Act of the 91st General Assembly makes an
12    election to limit contributions under this subdivision
13    (a)(3) within 90 days after that effective date, the
14    election shall be deemed to become effective on that
15    effective date and the judge shall be entitled to receive a
16    refund of any excess contributions paid to the System
17    during that 90-day period; any other election under this
18    subdivision (a)(3) becomes effective on the first of the
19    month following the date of the election. An election to
20    limit contributions under this subdivision (a)(3) is
21    irrevocable. Service credits earned in any other
22    participating system as defined in Article 20 of this Code
23    shall be considered for purposes of determining a judge's
24    eligibility to make an election under this subdivision
25    (a)(3).
26    (a-5) In addition to the contributions otherwise required

 

 

SB2368- 99 -LRB098 07118 EFG 37179 b

1under this Article, each participant shall also make the
2following contributions toward the cost of his or her
3retirement annuity from each payment of salary received by him
4or her for service as a judge:
5        (1) beginning July 1, 2013 and through June 30, 2014,
6    1% of salary; and
7        (2) beginning on July 1, 2014, 2% of salary.
8    (b) Beginning July 1, 1969, each participant is required to
9contribute 1% of each payment of salary towards the automatic
10increase in annuity provided in Section 18-125.1. However, such
11contributions need not be made by any participant who has
12elected prior to September 15, 1969, not to be subject to the
13automatic increase in annuity provisions.
14    (c) Effective July 13, 1953, each married participant
15subject to the survivor's annuity provisions is required to
16contribute 2 1/2% of each payment of salary, whether or not he
17or she is required to make any other contributions under this
18Section. Such contributions shall be made concurrently with the
19contributions made for annuity purposes.
20    (d) Notwithstanding any other provision of this Article,
21the required contributions for a participant who first becomes
22a participant on or after January 1, 2011 shall not exceed the
23contributions that would be due under this Article if that
24participant's highest salary for annuity purposes were
25$106,800, plus any increase in that amount under Section
2618-125.

 

 

SB2368- 100 -LRB098 07118 EFG 37179 b

1(Source: P.A. 96-1490, eff. 1-1-11.)
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.37 as follows:
 
4    (30 ILCS 805/8.37 new)
5    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 98th General Assembly.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.

 

 

SB2368- 101 -LRB098 07118 EFG 37179 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/1-103.3
4    40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
5    40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
6    40 ILCS 5/2-126from Ch. 108 1/2, par. 2-126
7    40 ILCS 5/14-114from Ch. 108 1/2, par. 14-114
8    40 ILCS 5/14-131
9    40 ILCS 5/14-133from Ch. 108 1/2, par. 14-133
10    40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
11    40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
12    40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
13    40 ILCS 5/16-133.1from Ch. 108 1/2, par. 16-133.1
14    40 ILCS 5/16-152from Ch. 108 1/2, par. 16-152
15    40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
16    40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
17    40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
18    40 ILCS 5/18-133from Ch. 108 1/2, par. 18-133
19    30 ILCS 805/8.37 new