Full Text of SB1292 96th General Assembly
SB1292enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Legislative intention; assist our most | 5 |
| vulnerable citizens. It is the intention of the General | 6 |
| Assembly in enacting this legislation that, by applying | 7 |
| $2,230,000,000 of the net proceeds of the sale of general | 8 |
| obligation bonds authorized by this amendatory Act of the 96th | 9 |
| General Assembly to fund pension obligations of the State, an | 10 |
| equivalent amount will be appropriated from the General Revenue | 11 |
| Fund to the Office of the Governor to be directed to State | 12 |
| agencies, in the discretion of and as determined by the | 13 |
| Governor and upon written direction of the Governor to the | 14 |
| Comptroller, to be expended for operational expenses, awards, | 15 |
| grants, and permanent improvements to fund programs and | 16 |
| services provided by community-based human service providers | 17 |
| and for State-funded human service programs to ensure that we | 18 |
| continue assisting the most vulnerable of our citizens. | 19 |
| Section 5. The General Obligation Bond Act is amended by | 20 |
| changing Sections 2, 2.5, 7.2, 9, 11, and 15 as follows:
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| (30 ILCS 330/2) (from Ch. 127, par. 652)
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| Sec. 2. Authorization for Bonds. The State of Illinois is |
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| authorized to
issue, sell and provide for the retirement of | 2 |
| General Obligation Bonds of
the State of Illinois for the | 3 |
| categories and specific purposes expressed in
Sections 2 | 4 |
| through 8 of this Act, in the total amount of $34,159,149,369 | 5 |
| $30,693,149,369 .
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| The bonds authorized in this Section 2 and in Section 16 of | 7 |
| this Act are
herein called "Bonds".
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| Of the total amount of Bonds authorized in this Act, up to | 9 |
| $2,200,000,000
in aggregate original principal amount may be | 10 |
| issued and sold in accordance
with the Baccalaureate Savings | 11 |
| Act in the form of General Obligation
College Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, up to | 13 |
| $300,000,000 in
aggregate original principal amount may be | 14 |
| issued and sold in accordance
with the Retirement Savings Act | 15 |
| in the form of General Obligation
Retirement Savings Bonds.
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| Of the total amount of Bonds authorized in this Act, the | 17 |
| additional
$10,000,000,000 authorized by Public Act 93-2 and | 18 |
| the $3,466,000,000 authorized by this amendatory Act of the | 19 |
| 96th General Assembly this amendatory Act of the 93rd General
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| Assembly shall be used solely as provided in Section 7.2.
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| The issuance and sale of Bonds pursuant to the General | 22 |
| Obligation Bond
Act is an economical and efficient method of | 23 |
| financing the long-term capital needs of
the State. This Act | 24 |
| will permit the issuance of a multi-purpose General
Obligation | 25 |
| Bond with uniform terms and features. This will not only lower
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| the cost of registration but also reduce the overall cost of |
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| issuing debt
by improving the marketability of Illinois General | 2 |
| Obligation Bonds.
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| (Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09.)
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| (30 ILCS 330/2.5) | 5 |
| Sec. 2.5. Limitation on issuance of Bonds. | 6 |
| (a) Except as provided in subsection (b), no Bonds may be | 7 |
| issued if, after the issuance, in the next State fiscal year | 8 |
| after the issuance of the Bonds, the amount of debt service | 9 |
| (including principal, whether payable at maturity or pursuant | 10 |
| to mandatory sinking fund installments, and interest) on all | 11 |
| then-outstanding Bonds , other than Bonds authorized by this | 12 |
| amendatory Act of the 96th General Assembly, would exceed 7% of | 13 |
| the aggregate appropriations from the general funds (which | 14 |
| consist of the General Revenue Fund, the Common School Fund, | 15 |
| the General Revenue Common School Special Account Fund, and the | 16 |
| Education Assistance Fund) and the Road Fund for the fiscal | 17 |
| year immediately prior to the fiscal year of the issuance. | 18 |
| (b) If the Comptroller and Treasurer each consent in | 19 |
| writing, Bonds may be issued even if the issuance does not | 20 |
| comply with subsection (a).
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| (Source: P.A. 93-839, eff. 7-30-04.)
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| (30 ILCS 330/7.2)
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| Sec. 7.2. State pension funding.
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| (a) The amount of $10,000,000,000 is authorized to be used |
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| for the
purpose of making contributions to the designated | 2 |
| retirement systems.
For the purposes of this Section, | 3 |
| "designated retirement systems" means
the State Employees' | 4 |
| Retirement System of Illinois;
the Teachers' Retirement System | 5 |
| of the State of Illinois;
the State Universities Retirement | 6 |
| System;
the Judges Retirement System of Illinois; and
the | 7 |
| General Assembly Retirement System.
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| The amount of $3,466,000,000 of Bonds authorized by this | 9 |
| amendatory Act of the 96th General Assembly is authorized to be | 10 |
| used for the purpose of making a portion of the State's Fiscal | 11 |
| Year 2010 required contributions to the designated retirement | 12 |
| systems. | 13 |
| (b) The Pension Contribution Fund is created as a special | 14 |
| fund in the
State Treasury.
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| The proceeds of the additional $10,000,000,000 of Bonds | 16 |
| authorized by Public Act 93-2 this
amendatory Act of the 93rd | 17 |
| General Assembly , less the amounts authorized in the
Bond Sale | 18 |
| Order to be deposited directly into the capitalized interest | 19 |
| account
of the General Obligation Bond Retirement and Interest | 20 |
| Fund or otherwise
directly paid out for bond sale expenses | 21 |
| under Section 8, shall be deposited
into the Pension | 22 |
| Contribution Fund and used as provided in this Section.
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| The proceeds of the additional $3,466,000,000 of Bonds | 24 |
| authorized by this amendatory Act of the 96th General Assembly, | 25 |
| less the amounts directly paid out for bond sale expenses under | 26 |
| Section 8, shall be deposited into the Pension Contribution |
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| Fund, and the Comptroller and the Treasurer shall, as soon as | 2 |
| practical, (i) first, transfer from the Pension Contribution | 3 |
| Fund to the General Revenue Fund or Common School Fund an | 4 |
| amount equal to the amount of payments, if any, made to the | 5 |
| designated retirement systems from the General Revenue Fund or | 6 |
| Common School Fund in State fiscal year 2010 and (ii) second, | 7 |
| make transfers from the Pension Contribution Fund to the | 8 |
| designated retirement systems pursuant to Sections 2-124, | 9 |
| 14-131, 15-155, 16-158, and 18-131 of the Illinois Pension | 10 |
| Code. | 11 |
| (c) Of the amount of Bond proceeds from the bond sale | 12 |
| authorized by Public Act 93-2 first deposited into the Pension
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| Contribution Fund, there shall be reserved for transfers under | 14 |
| this subsection
the sum of $300,000,000, representing the | 15 |
| required State contributions to the
designated retirement | 16 |
| systems for the last quarter of State fiscal year 2003,
plus | 17 |
| the sum of $1,860,000,000, representing the required State | 18 |
| contributions
to the designated retirement systems for State | 19 |
| fiscal year 2004.
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| Upon the deposit of sufficient moneys from the bond sale | 21 |
| authorized by Public Act 93-2 into the Pension Contribution
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| Fund, the Comptroller and Treasurer shall immediately transfer | 23 |
| the sum of
$300,000,000 from the Pension Contribution Fund to | 24 |
| the General Revenue Fund.
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| Whenever any payment of required State contributions for | 26 |
| State fiscal year
2004 is made to one of the designated |
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| retirement systems, the Comptroller and
Treasurer shall, as | 2 |
| soon as practicable, transfer from the Pension Contribution
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| Fund to the General Revenue Fund an amount equal to the amount | 4 |
| of that payment
to the designated retirement system.
Beginning | 5 |
| on the effective date of this amendatory Act of the 93rd
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| General Assembly, the transfers from the Pension Contribution | 7 |
| Fund to
the General Revenue Fund shall be suspended until June | 8 |
| 30, 2004, and
the remaining balance in the Pension Contribution | 9 |
| Fund shall be
transferred directly to the designated retirement | 10 |
| systems as provided
in Section 6z-61 of the State Finance Act. | 11 |
| On and after July 1, 2004, in the
event that
any amount is on | 12 |
| deposit in the Pension Contribution Fund from time to
time, the | 13 |
| Comptroller and
Treasurer shall continue to make such transfers | 14 |
| based on fiscal year 2005
payments until the entire amount on | 15 |
| deposit has been
transferred.
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| (d) All amounts deposited into the Pension Contribution | 17 |
| Fund, other
than the amounts reserved for the transfers under | 18 |
| subsection (c) from the bond sale authorized by Public Act 93-2 | 19 |
| and other than amounts deposited into the Pension Contribution | 20 |
| Fund from the bond sale authorized by this amendatory Act of | 21 |
| the 96th General Assembly , shall be
appropriated to the | 22 |
| designated retirement systems to reduce their actuarial
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| reserve deficiencies. The amount of the appropriation to each | 24 |
| designated
retirement system shall constitute a portion of the | 25 |
| total appropriation under
this subsection that is the same as | 26 |
| that retirement system's portion of the
total actuarial reserve |
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| deficiency of the systems, as most recently determined
by the
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| Governor's Office of Management and Budget under Section 8.12 | 3 |
| of the State Finance Act.
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| With respect to proceeds from the bond sale authorized by | 5 |
| Public Act 93-2 only, within Within 15 days after any Bond | 6 |
| proceeds in excess of the amounts initially
reserved under | 7 |
| subsection (c) are deposited into the Pension Contribution
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| Fund, the
Governor's Office of Management and Budget shall (i) | 9 |
| allocate those proceeds among the
designated retirement | 10 |
| systems in proportion to their respective actuarial
reserve | 11 |
| deficiencies, as most recently determined under Section 8.12 of | 12 |
| the
State Finance Act, and (ii) certify those allocations to | 13 |
| the designated
retirement systems and the Comptroller.
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| Upon receiving certification of an allocation under this | 15 |
| subsection, a
designated retirement system shall submit to the | 16 |
| Comptroller a voucher for
the amount of its allocation. The | 17 |
| voucher shall be paid out of the amount
appropriated to that | 18 |
| designated retirement system from the Pension Contribution
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| Fund pursuant to this subsection.
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| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)
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| (30 ILCS 330/9) (from Ch. 127, par. 659)
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| Sec. 9. Conditions for Issuance and Sale of Bonds - | 23 |
| Requirements for
Bonds. | 24 |
| (a) Except as otherwise provided in this subsection, Bonds | 25 |
| shall be issued and sold from time to time, in one or
more |
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| series, in such amounts and at such prices as may be directed | 2 |
| by the
Governor, upon recommendation by the Director of the
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| Governor's Office of Management and Budget.
Bonds shall be in | 4 |
| such form (either coupon, registered or book entry), in
such | 5 |
| denominations, payable within 25 years from their date, subject | 6 |
| to such
terms of redemption with or without premium, bear | 7 |
| interest payable at
such times and at such fixed or variable | 8 |
| rate or rates, and be dated
as shall be fixed and determined by | 9 |
| the Director of
the
Governor's Office of Management and Budget
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| in the order authorizing the issuance and sale
of any series of | 11 |
| Bonds, which order shall be approved by the Governor
and is | 12 |
| herein called a "Bond Sale Order"; provided however, that | 13 |
| interest
payable at fixed or variable rates shall not exceed | 14 |
| that permitted in the
Bond Authorization Act, as now or | 15 |
| hereafter amended. Bonds shall be
payable at such place or | 16 |
| places, within or without the State of Illinois, and
may be | 17 |
| made registrable as to either principal or as to both principal | 18 |
| and
interest, as shall be specified in the Bond Sale Order. | 19 |
| Bonds may be callable
or subject to purchase and retirement or | 20 |
| tender and remarketing as fixed
and determined in the Bond Sale | 21 |
| Order. Bonds must be issued with principal or mandatory | 22 |
| redemption amounts in equal amounts, with the first maturity | 23 |
| issued occurring within the fiscal year in which the Bonds are | 24 |
| issued or within the next succeeding fiscal year, with Bonds | 25 |
| issued maturing or subject to mandatory redemption each fiscal | 26 |
| year thereafter up to 25 years. Notwithstanding any provision |
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| of this Act to the contrary, the Bonds authorized by this | 2 |
| amendatory Act of the 96th General Assembly shall be payable | 3 |
| within 5 years from their date and must be issued with | 4 |
| principal or mandatory redemption amounts in equal amounts, | 5 |
| with payment of principal or mandatory redemption beginning in | 6 |
| the first fiscal year following the fiscal year in which the | 7 |
| Bonds are issued.
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| In the case of any series of Bonds bearing interest at a | 9 |
| variable interest
rate ("Variable Rate Bonds"), in lieu of | 10 |
| determining the rate or rates at which
such series of Variable | 11 |
| Rate Bonds shall bear interest and the price or prices
at which | 12 |
| such Variable Rate Bonds shall be initially sold or remarketed | 13 |
| (in the
event of purchase and subsequent resale), the Bond Sale | 14 |
| Order may provide that
such interest rates and prices may vary | 15 |
| from time to time depending on criteria
established in such | 16 |
| Bond Sale Order, which criteria may include, without
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| limitation, references to indices or variations in interest | 18 |
| rates as may, in
the judgment of a remarketing agent, be | 19 |
| necessary to cause Variable Rate Bonds
of such series to be | 20 |
| remarketable from time to time at a price equal to their
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| principal amount, and may provide for appointment of a bank, | 22 |
| trust company,
investment bank, or other financial institution | 23 |
| to serve as remarketing agent
in that connection.
The Bond Sale | 24 |
| Order may provide that alternative interest rates or provisions
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| for establishing alternative interest rates, different | 26 |
| security or claim
priorities, or different call or amortization |
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| provisions will apply during
such times as Variable Rate Bonds | 2 |
| of any series are held by a person providing
credit or | 3 |
| liquidity enhancement arrangements for such Bonds as | 4 |
| authorized in
subsection (b) of this Section.
The Bond Sale | 5 |
| Order may also provide for such variable interest rates to be
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| established pursuant to a process generally known as an auction | 7 |
| rate process
and may provide for appointment of one or more | 8 |
| financial institutions to serve
as auction agents and | 9 |
| broker-dealers in connection with the establishment of
such | 10 |
| interest rates and the sale and remarketing of such Bonds.
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| (b) In connection with the issuance of any series of Bonds, | 12 |
| the State may
enter into arrangements to provide additional | 13 |
| security and liquidity for such
Bonds, including, without | 14 |
| limitation, bond or interest rate insurance or
letters of | 15 |
| credit, lines of credit, bond purchase contracts, or other
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| arrangements whereby funds are made available to retire or | 17 |
| purchase Bonds,
thereby assuring the ability of owners of the | 18 |
| Bonds to sell or redeem their
Bonds. The State may enter into | 19 |
| contracts and may agree to pay fees to persons
providing such | 20 |
| arrangements, but only under circumstances where the Director | 21 |
| of
the
Governor's Office of Management and Budget certifies | 22 |
| that he or she reasonably expects the total
interest paid or to | 23 |
| be paid on the Bonds, together with the fees for the
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| arrangements (being treated as if interest), would not, taken | 25 |
| together, cause
the Bonds to bear interest, calculated to their | 26 |
| stated maturity, at a rate in
excess of the rate that the Bonds |
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| would bear in the absence of such
arrangements.
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| The State may, with respect to Bonds issued or anticipated | 3 |
| to be issued,
participate in and enter into arrangements with | 4 |
| respect to interest rate
protection or exchange agreements, | 5 |
| guarantees, or financial futures contracts
for the purpose of | 6 |
| limiting, reducing, or managing interest rate exposure.
The | 7 |
| authority granted under this paragraph, however, shall not | 8 |
| increase the principal amount of Bonds authorized to be issued | 9 |
| by law. The arrangements may be executed and delivered by the | 10 |
| Director
of the
Governor's Office of Management and Budget on | 11 |
| behalf of the State. Net payments for such
arrangements shall | 12 |
| constitute interest on the Bonds and shall be paid from the
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| General Obligation Bond Retirement and Interest Fund. The | 14 |
| Director of the
Governor's Office of Management and Budget | 15 |
| shall at least annually certify to the Governor and
the
State | 16 |
| Comptroller his or her estimate of the amounts of such net | 17 |
| payments to
be included in the calculation of interest required | 18 |
| to be paid by the State.
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| (c) Prior to the issuance of any Variable Rate Bonds | 20 |
| pursuant to
subsection (a), the Director of the
Governor's | 21 |
| Office of Management and Budget shall adopt an
interest rate | 22 |
| risk management policy providing that the amount of the State's
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| variable rate exposure with respect to Bonds shall not exceed | 24 |
| 20%. This policy
shall remain in effect while any Bonds are | 25 |
| outstanding and the issuance of
Bonds
shall be subject to the | 26 |
| terms of such policy. The terms of this policy may be
amended |
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| from time to time by the Director of the
Governor's Office of | 2 |
| Management and Budget but in no
event shall any amendment cause | 3 |
| the permitted level of the State's variable
rate exposure with | 4 |
| respect to Bonds to exceed 20%.
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| (Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666, | 6 |
| eff. 3-5-04; 93-839, eff. 7-30-04.)
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| (30 ILCS 330/11) (from Ch. 127, par. 661)
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| Sec. 11. Sale of Bonds. Except as otherwise provided in | 9 |
| this Section,
Bonds shall be sold from time to time pursuant to
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| notice of sale and public bid or by negotiated sale
in such | 11 |
| amounts and at such
times as is directed by the Governor, upon | 12 |
| recommendation by the Director of
the
Governor's Office of | 13 |
| Management and Budget. At least 25%, based on total principal | 14 |
| amount, of all Bonds issued each fiscal year shall be sold | 15 |
| pursuant to notice of sale and public bid. At all times during | 16 |
| each fiscal year, no more than 75%, based on total principal | 17 |
| amount, of the Bonds issued each fiscal year, shall have been | 18 |
| sold by negotiated sale. Failure to satisfy the requirements in | 19 |
| the preceding 2 sentences shall not affect the validity of any | 20 |
| previously issued Bonds ; provided that all Bonds authorized by | 21 |
| this amendatory Act of the 96th General Assembly shall not be | 22 |
| included in determining compliance for any fiscal year with the | 23 |
| requirements of the preceding 2 sentences ; and further provided | 24 |
| that refunding Bonds satisfying the requirements of Section 16 | 25 |
| of this Act and sold during fiscal year 2009, 2010, or 2011 |
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| shall not be subject to the requirements in the preceding 2 | 2 |
| sentences.
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| If
any Bonds, including refunding Bonds, are to be sold by | 4 |
| negotiated
sale, the
Director of the
Governor's Office of | 5 |
| Management and Budget
shall comply with the
competitive request | 6 |
| for proposal process set forth in the Illinois
Procurement Code | 7 |
| and all other applicable requirements of that Code.
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| If Bonds are to be sold pursuant to notice of sale and | 9 |
| public bid, the
Director of the
Governor's Office of Management | 10 |
| and Budget shall, from time to time, as Bonds are to be sold, | 11 |
| advertise
the sale of the Bonds in at least 2 daily newspapers, | 12 |
| one of which is
published in the City of Springfield and one in | 13 |
| the City of Chicago. The sale
of the Bonds shall also be
| 14 |
| advertised in the volume of the Illinois Procurement Bulletin | 15 |
| that is
published by the Department of Central Management | 16 |
| Services. Each of
the advertisements for
proposals shall be | 17 |
| published once at least
10 days prior to the date fixed
for the | 18 |
| opening of the bids. The Director of the
Governor's Office of | 19 |
| Management and Budget may
reschedule the date of sale upon the | 20 |
| giving of such additional notice as the
Director deems adequate | 21 |
| to inform prospective bidders of
such change; provided, | 22 |
| however, that all other conditions of the sale shall
continue | 23 |
| as originally advertised.
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| Executed Bonds shall, upon payment therefor, be delivered | 25 |
| to the purchaser,
and the proceeds of Bonds shall be paid into | 26 |
| the State Treasury as directed by
Section 12 of this Act.
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| (Source: P.A. 96-18, eff. 6-26-09.)
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| (30 ILCS 330/15) (from Ch. 127, par. 665)
| 3 |
| Sec. 15. Computation of Principal and Interest; transfers.
| 4 |
| (a) Upon each delivery of Bonds authorized to be issued | 5 |
| under this Act,
the Comptroller shall compute and certify to | 6 |
| the Treasurer the total amount
of principal of, interest on, | 7 |
| and premium, if any, on Bonds issued that will
be payable in | 8 |
| order to retire such Bonds and the amount of principal of,
| 9 |
| interest on and premium, if any, on such Bonds that will be | 10 |
| payable on each
payment date according to the tenor of such | 11 |
| Bonds during the then current and
each succeeding fiscal year.
| 12 |
| With respect to the interest payable on variable rate bonds, | 13 |
| such
certifications shall be calculated at the maximum rate of | 14 |
| interest that
may be payable during the fiscal year, after | 15 |
| taking into account any credits
permitted in the related | 16 |
| indenture or other instrument against the amount
of such | 17 |
| interest required to be appropriated for such period pursuant | 18 |
| to
subsection (c) of Section 14 of this Act. With respect to | 19 |
| the interest
payable, such certifications shall include the | 20 |
| amounts certified by the
Director of the
Governor's Office of | 21 |
| Management and Budget under subsection (b) of Section 9 of
this | 22 |
| Act.
| 23 |
| On or before the last day of each month the State Treasurer | 24 |
| and Comptroller
shall transfer from (1) the Road Fund with | 25 |
| respect to Bonds issued under
paragraph (a) of Section 4 of |
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| this Act or Bonds issued for the purpose of
refunding such | 2 |
| bonds, and from (2) the General
Revenue Fund, with respect to | 3 |
| all other Bonds issued under this Act, to the
General | 4 |
| Obligation Bond Retirement and Interest Fund an amount | 5 |
| sufficient to
pay the aggregate of the principal of, interest | 6 |
| on, and premium, if any, on
Bonds payable, by their terms on | 7 |
| the next payment date divided by the number of
full calendar | 8 |
| months between the date of such Bonds and the first such | 9 |
| payment
date, and thereafter, divided by the number of months | 10 |
| between each succeeding
payment date after the first. Such | 11 |
| computations and transfers shall be
made for each series of | 12 |
| Bonds issued and delivered. Interest payable on
variable rate | 13 |
| bonds shall be calculated at the maximum rate of interest that
| 14 |
| may be payable for the relevant period, after taking into | 15 |
| account any credits
permitted in the related indenture or other | 16 |
| instrument against the amount of
such interest required to be | 17 |
| appropriated for such period pursuant to
subsection (c) of | 18 |
| Section 14 of this Act. Computations of interest shall
include | 19 |
| the amounts certified by the Director of the
Governor's Office | 20 |
| of Management and Budget
under subsection (b) of Section 9 of | 21 |
| this Act. Interest for which moneys
have already been deposited | 22 |
| into the capitalized interest account within the
General | 23 |
| Obligation Bond Retirement and Interest Fund shall not be | 24 |
| included
in the calculation of the amounts to be transferred | 25 |
| under this subsection. Notwithstanding any other provision in | 26 |
| this Section, the transfer provisions provided in this |
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| paragraph shall not apply to transfers made in fiscal year 2010 | 2 |
| with respect to Bonds issued in fiscal year 2010 pursuant to | 3 |
| Section 7.2 of this Act. In the case of transfers made in | 4 |
| fiscal year 2010 with respect to the Bonds issued in fiscal | 5 |
| year 2010 pursuant to Section 7.2 of this Act, on or before the | 6 |
| 15th day of the month prior to the required debt service | 7 |
| payment, the State Treasurer and Comptroller shall transfer | 8 |
| from the General Revenue Fund to the General Obligation Bond | 9 |
| Retirement and Interest Fund an amount sufficient to pay the | 10 |
| aggregate of the principal of, interest on, and premium, if | 11 |
| any, on the Bonds payable in that next month.
| 12 |
| The transfer of monies herein and above directed is not | 13 |
| required if monies
in the General Obligation Bond Retirement | 14 |
| and Interest Fund are more than
the amount otherwise to be | 15 |
| transferred as herein above provided, and if the
Governor or | 16 |
| his authorized representative notifies the State Treasurer and
| 17 |
| Comptroller of such fact in writing.
| 18 |
| (b) After the effective date of this Act, the balance of, | 19 |
| and monies
directed to be included in the Capital Development | 20 |
| Bond Retirement and
Interest Fund, Anti-Pollution Bond | 21 |
| Retirement and Interest Fund,
Transportation Bond, Series A | 22 |
| Retirement and Interest Fund, Transportation
Bond, Series B | 23 |
| Retirement and Interest Fund, and Coal Development Bond
| 24 |
| Retirement and Interest Fund shall be transferred to and | 25 |
| deposited in the
General Obligation Bond Retirement and | 26 |
| Interest Fund. This Fund shall be
used to make debt service |
|
|
|
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| 1 |
| payments on the State's general obligation Bonds
heretofore | 2 |
| issued which are now outstanding and payable from the Funds | 3 |
| herein
listed as well as on Bonds issued under this Act.
| 4 |
| (c) The unused portion of federal funds received for a | 5 |
| capital
facilities project, as authorized by Section 3 of this | 6 |
| Act, for which
monies from the Capital Development Fund have | 7 |
| been expended shall be
deposited upon completion of the project | 8 |
| in the General Obligation Bond
Retirement and Interest Fund. | 9 |
| Any federal funds received as reimbursement
for the completed | 10 |
| construction of a capital facilities project, as
authorized by | 11 |
| Section 3 of this Act, for which monies from the Capital
| 12 |
| Development Fund have been expended shall be deposited in the | 13 |
| General
Obligation Bond Retirement and Interest Fund.
| 14 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-9, eff. 6-3-03; 94-793, | 15 |
| eff. 5-19-06.)
| 16 |
| Section 10. The Illinois Pension Code is amended by | 17 |
| changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as | 18 |
| follows:
| 19 |
| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 20 |
| Sec. 2-124. Contributions by State.
| 21 |
| (a) The State shall make contributions to the System by
| 22 |
| appropriations of amounts which, together with the | 23 |
| contributions of
participants, interest earned on investments, | 24 |
| and other income
will meet the cost of maintaining and |
|
|
|
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|
| 1 |
| administering the System on a 90%
funded basis in accordance | 2 |
| with actuarial recommendations.
| 3 |
| (b) The Board shall determine the amount of State
| 4 |
| contributions required for each fiscal year on the basis of the
| 5 |
| actuarial tables and other assumptions adopted by the Board and | 6 |
| the
prescribed rate of interest, using the formula in | 7 |
| subsection (c).
| 8 |
| (c) For State fiscal years 2011 through 2045, the minimum | 9 |
| contribution
to the System to be made by the State for each | 10 |
| fiscal year shall be an amount
determined by the System to be | 11 |
| sufficient to bring the total assets of the
System up to 90% of | 12 |
| the total actuarial liabilities of the System by the end of
| 13 |
| State fiscal year 2045. In making these determinations, the | 14 |
| required State
contribution shall be calculated each year as a | 15 |
| level percentage of payroll
over the years remaining to and | 16 |
| including fiscal year 2045 and shall be
determined under the | 17 |
| projected unit credit actuarial cost method.
| 18 |
| For State fiscal years 1996 through 2005, the State | 19 |
| contribution to
the System, as a percentage of the applicable | 20 |
| employee payroll, shall be
increased in equal annual increments | 21 |
| so that by State fiscal year 2011, the
State is contributing at | 22 |
| the rate required under this Section.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State
contribution for State fiscal year 2006 is | 25 |
| $4,157,000.
| 26 |
| Notwithstanding any other provision of this Article, the |
|
|
|
SB1292 Enrolled |
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|
| 1 |
| total required State
contribution for State fiscal year 2007 is | 2 |
| $5,220,300.
| 3 |
| For each of State fiscal years 2008 through 2009 2010 , the | 4 |
| State contribution to
the System, as a percentage of the | 5 |
| applicable employee payroll, shall be
increased in equal annual | 6 |
| increments from the required State contribution for State | 7 |
| fiscal year 2007, so that by State fiscal year 2011, the
State | 8 |
| is contributing at the rate otherwise required under this | 9 |
| Section.
| 10 |
| Notwithstanding any other provision of this Article, the | 11 |
| total required State contribution for State fiscal year 2010 is | 12 |
| $10,454,000 and shall be made from the proceeds of bonds sold | 13 |
| in fiscal year 2010 pursuant to Section 7.2 of the General | 14 |
| Obligation Bond Act, less (i) the pro rata share of bond sale | 15 |
| expenses determined by the System's share of total bond | 16 |
| proceeds, (ii) any amounts received from the General Revenue | 17 |
| Fund in fiscal year 2010, and (iii) any reduction in bond | 18 |
| proceeds due to the issuance of discounted bonds, if | 19 |
| applicable. | 20 |
| Beginning in State fiscal year 2046, the minimum State | 21 |
| contribution for
each fiscal year shall be the amount needed to | 22 |
| maintain the total assets of
the System at 90% of the total | 23 |
| actuarial liabilities of the System.
| 24 |
| Amounts received by the System pursuant to Section 25 of | 25 |
| the Budget Stabilization Act or Section 8.12 of the State | 26 |
| Finance Act in any fiscal year do not reduce and do not |
|
|
|
SB1292 Enrolled |
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|
| 1 |
| constitute payment of any portion of the minimum State | 2 |
| contribution required under this Article in that fiscal year. | 3 |
| Such amounts shall not reduce, and shall not be included in the | 4 |
| calculation of, the required State contributions under this | 5 |
| Article in any future year until the System has reached a | 6 |
| funding ratio of at least 90%. A reference in this Article to | 7 |
| the "required State contribution" or any substantially similar | 8 |
| term does not include or apply to any amounts payable to the | 9 |
| System under Section 25 of the Budget Stabilization Act.
| 10 |
| Notwithstanding any other provision of this Section, the | 11 |
| required State
contribution for State fiscal year 2005 and for | 12 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 13 |
| under this Section and
certified under Section 2-134, shall not | 14 |
| exceed an amount equal to (i) the
amount of the required State | 15 |
| contribution that would have been calculated under
this Section | 16 |
| for that fiscal year if the System had not received any | 17 |
| payments
under subsection (d) of Section 7.2 of the General | 18 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 19 |
| total debt service payments for that fiscal
year on the bonds | 20 |
| issued for the purposes of that Section 7.2, as determined
and | 21 |
| certified by the Comptroller, that is the same as the System's | 22 |
| portion of
the total moneys distributed under subsection (d) of | 23 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 24 |
| this maximum for State fiscal years 2008 through 2010, however, | 25 |
| the amount referred to in item (i) shall be increased, as a | 26 |
| percentage of the applicable employee payroll, in equal |
|
|
|
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|
| 1 |
| increments calculated from the sum of the required State | 2 |
| contribution for State fiscal year 2007 plus the applicable | 3 |
| portion of the State's total debt service payments for fiscal | 4 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 5 |
| of the General
Obligation Bond Act, so that, by State fiscal | 6 |
| year 2011, the
State is contributing at the rate otherwise | 7 |
| required under this Section.
| 8 |
| (d) For purposes of determining the required State | 9 |
| contribution to the System, the value of the System's assets | 10 |
| shall be equal to the actuarial value of the System's assets, | 11 |
| which shall be calculated as follows: | 12 |
| As of June 30, 2008, the actuarial value of the System's | 13 |
| assets shall be equal to the market value of the assets as of | 14 |
| that date. In determining the actuarial value of the System's | 15 |
| assets for fiscal years after June 30, 2008, any actuarial | 16 |
| gains or losses from investment return incurred in a fiscal | 17 |
| year shall be recognized in equal annual amounts over the | 18 |
| 5-year period following that fiscal year. | 19 |
| (e) For purposes of determining the required State | 20 |
| contribution to the system for a particular year, the actuarial | 21 |
| value of assets shall be assumed to earn a rate of return equal | 22 |
| to the system's actuarially assumed rate of return. | 23 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950, | 24 |
| eff. 8-29-08.)
| 25 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
|
|
|
|
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|
| 1 |
| Sec. 14-131. Contributions by State.
| 2 |
| (a) The State shall make contributions to the System by | 3 |
| appropriations of
amounts which, together with other employer | 4 |
| contributions from trust, federal,
and other funds, employee | 5 |
| contributions, investment income, and other income,
will be | 6 |
| sufficient to meet the cost of maintaining and administering | 7 |
| the System
on a 90% funded basis in accordance with actuarial | 8 |
| recommendations.
| 9 |
| For the purposes of this Section and Section 14-135.08, | 10 |
| references to State
contributions refer only to employer | 11 |
| contributions and do not include employee
contributions that | 12 |
| are picked up or otherwise paid by the State or a
department on | 13 |
| behalf of the employee.
| 14 |
| (b) The Board shall determine the total amount of State | 15 |
| contributions
required for each fiscal year on the basis of the | 16 |
| actuarial tables and other
assumptions adopted by the Board, | 17 |
| using the formula in subsection (e).
| 18 |
| The Board shall also determine a State contribution rate | 19 |
| for each fiscal
year, expressed as a percentage of payroll, | 20 |
| based on the total required State
contribution for that fiscal | 21 |
| year (less the amount received by the System from
| 22 |
| appropriations under Section 8.12 of the State Finance Act and | 23 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 24 |
| Act, if any, for the fiscal year
ending on the June 30 | 25 |
| immediately preceding the applicable November 15
certification | 26 |
| deadline), the estimated payroll (including all forms of
|
|
|
|
SB1292 Enrolled |
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|
| 1 |
| compensation) for personal services rendered by eligible | 2 |
| employees, and the
recommendations of the actuary.
| 3 |
| For the purposes of this Section and Section 14.1 of the | 4 |
| State Finance Act,
the term "eligible employees" includes | 5 |
| employees who participate in the System,
persons who may elect | 6 |
| to participate in the System but have not so elected,
persons | 7 |
| who are serving a qualifying period that is required for | 8 |
| participation,
and annuitants employed by a department as | 9 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 10 |
| (c) Contributions shall be made by the several departments | 11 |
| for each pay
period by warrants drawn by the State Comptroller | 12 |
| against their respective
funds or appropriations based upon | 13 |
| vouchers stating the amount to be so
contributed. These amounts | 14 |
| shall be based on the full rate certified by the
Board under | 15 |
| Section 14-135.08 for that fiscal year.
From the effective date | 16 |
| of this amendatory Act of the 93rd General
Assembly through the | 17 |
| payment of the final payroll from fiscal year 2004
| 18 |
| appropriations, the several departments shall not make | 19 |
| contributions
for the remainder of fiscal year 2004 but shall | 20 |
| instead make payments
as required under subsection (a-1) of | 21 |
| Section 14.1 of the State Finance Act.
The several departments | 22 |
| shall resume those contributions at the commencement of
fiscal | 23 |
| year 2005.
| 24 |
| (d) If an employee is paid from trust funds or federal | 25 |
| funds, the
department or other employer shall pay employer | 26 |
| contributions from those funds
to the System at the certified |
|
|
|
SB1292 Enrolled |
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LRB096 08007 AMC 19275 b |
|
| 1 |
| rate, unless the terms of the trust or the
federal-State | 2 |
| agreement preclude the use of the funds for that purpose, in
| 3 |
| which case the required employer contributions shall be paid by | 4 |
| the State.
From the effective date of this amendatory
Act of | 5 |
| the 93rd General Assembly through the payment of the final
| 6 |
| payroll from fiscal year 2004 appropriations, the department or | 7 |
| other
employer shall not pay contributions for the remainder of | 8 |
| fiscal year
2004 but shall instead make payments as required | 9 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 10 |
| Act. The department or other employer shall
resume payment of
| 11 |
| contributions at the commencement of fiscal year 2005.
| 12 |
| (e) For State fiscal years 2011 through 2045, the minimum | 13 |
| contribution
to the System to be made by the State for each | 14 |
| fiscal year shall be an amount
determined by the System to be | 15 |
| sufficient to bring the total assets of the
System up to 90% of | 16 |
| the total actuarial liabilities of the System by the end
of | 17 |
| State fiscal year 2045. In making these determinations, the | 18 |
| required State
contribution shall be calculated each year as a | 19 |
| level percentage of payroll
over the years remaining to and | 20 |
| including fiscal year 2045 and shall be
determined under the | 21 |
| projected unit credit actuarial cost method.
| 22 |
| For State fiscal years 1996 through 2005, the State | 23 |
| contribution to
the System, as a percentage of the applicable | 24 |
| employee payroll, shall be
increased in equal annual increments | 25 |
| so that by State fiscal year 2011, the
State is contributing at | 26 |
| the rate required under this Section; except that
(i) for State |
|
|
|
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|
| 1 |
| fiscal year 1998, for all purposes of this Code and any other
| 2 |
| law of this State, the certified percentage of the applicable | 3 |
| employee payroll
shall be 5.052% for employees earning eligible | 4 |
| creditable service under Section
14-110 and 6.500% for all | 5 |
| other employees, notwithstanding any contrary
certification | 6 |
| made under Section 14-135.08 before the effective date of this
| 7 |
| amendatory Act of 1997, and (ii)
in the following specified | 8 |
| State fiscal years, the State contribution to
the System shall | 9 |
| not be less than the following indicated percentages of the
| 10 |
| applicable employee payroll, even if the indicated percentage | 11 |
| will produce a
State contribution in excess of the amount | 12 |
| otherwise required under this
subsection and subsection (a):
| 13 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 14 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 15 |
| Notwithstanding any other provision of this Article, the | 16 |
| total required State
contribution to the System for State | 17 |
| fiscal year 2006 is $203,783,900.
| 18 |
| Notwithstanding any other provision of this Article, the | 19 |
| total required State
contribution to the System for State | 20 |
| fiscal year 2007 is $344,164,400.
| 21 |
| For each of State fiscal years 2008 through 2009 2010 , the | 22 |
| State contribution to
the System, as a percentage of the | 23 |
| applicable employee payroll, shall be
increased in equal annual | 24 |
| increments from the required State contribution for State | 25 |
| fiscal year 2007, so that by State fiscal year 2011, the
State | 26 |
| is contributing at the rate otherwise required under this |
|
|
|
SB1292 Enrolled |
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LRB096 08007 AMC 19275 b |
|
| 1 |
| Section.
| 2 |
| Notwithstanding any other provision of this Article, the | 3 |
| total required State General Revenue Fund contribution for | 4 |
| State fiscal year 2010 is $723,703,100 and shall be made from | 5 |
| the proceeds of bonds sold in fiscal year 2010 pursuant to | 6 |
| Section 7.2 of the General Obligation Bond Act, less (i) the | 7 |
| pro rata share of bond sale expenses determined by the System's | 8 |
| share of total bond proceeds, (ii) any amounts received from | 9 |
| the General Revenue Fund in fiscal year 2010, and (iii) any | 10 |
| reduction in bond proceeds due to the issuance of discounted | 11 |
| bonds, if applicable. | 12 |
| Beginning in State fiscal year 2046, the minimum State | 13 |
| contribution for
each fiscal year shall be the amount needed to | 14 |
| maintain the total assets of
the System at 90% of the total | 15 |
| actuarial liabilities of the System.
| 16 |
| Amounts received by the System pursuant to Section 25 of | 17 |
| the Budget Stabilization Act or Section 8.12 of the State | 18 |
| Finance Act in any fiscal year do not reduce and do not | 19 |
| constitute payment of any portion of the minimum State | 20 |
| contribution required under this Article in that fiscal year. | 21 |
| Such amounts shall not reduce, and shall not be included in the | 22 |
| calculation of, the required State contributions under this | 23 |
| Article in any future year until the System has reached a | 24 |
| funding ratio of at least 90%. A reference in this Article to | 25 |
| the "required State contribution" or any substantially similar | 26 |
| term does not include or apply to any amounts payable to the |
|
|
|
SB1292 Enrolled |
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LRB096 08007 AMC 19275 b |
|
| 1 |
| System under Section 25 of the Budget Stabilization Act.
| 2 |
| Notwithstanding any other provision of this Section, the | 3 |
| required State
contribution for State fiscal year 2005 and for | 4 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 5 |
| under this Section and
certified under Section 14-135.08, shall | 6 |
| not exceed an amount equal to (i) the
amount of the required | 7 |
| State contribution that would have been calculated under
this | 8 |
| Section for that fiscal year if the System had not received any | 9 |
| payments
under subsection (d) of Section 7.2 of the General | 10 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 11 |
| total debt service payments for that fiscal
year on the bonds | 12 |
| issued for the purposes of that Section 7.2, as determined
and | 13 |
| certified by the Comptroller, that is the same as the System's | 14 |
| portion of
the total moneys distributed under subsection (d) of | 15 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 16 |
| this maximum for State fiscal years 2008 through 2010, however, | 17 |
| the amount referred to in item (i) shall be increased, as a | 18 |
| percentage of the applicable employee payroll, in equal | 19 |
| increments calculated from the sum of the required State | 20 |
| contribution for State fiscal year 2007 plus the applicable | 21 |
| portion of the State's total debt service payments for fiscal | 22 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 23 |
| of the General
Obligation Bond Act, so that, by State fiscal | 24 |
| year 2011, the
State is contributing at the rate otherwise | 25 |
| required under this Section.
| 26 |
| (f) After the submission of all payments for eligible |
|
|
|
SB1292 Enrolled |
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LRB096 08007 AMC 19275 b |
|
| 1 |
| employees
from personal services line items in fiscal year 2004 | 2 |
| have been made,
the Comptroller shall provide to the System a | 3 |
| certification of the sum
of all fiscal year 2004 expenditures | 4 |
| for personal services that would
have been covered by payments | 5 |
| to the System under this Section if the
provisions of this | 6 |
| amendatory Act of the 93rd General Assembly had not been
| 7 |
| enacted. Upon
receipt of the certification, the System shall | 8 |
| determine the amount
due to the System based on the full rate | 9 |
| certified by the Board under
Section 14-135.08 for fiscal year | 10 |
| 2004 in order to meet the State's
obligation under this | 11 |
| Section. The System shall compare this amount
due to the amount | 12 |
| received by the System in fiscal year 2004 through
payments | 13 |
| under this Section and under Section 6z-61 of the State Finance | 14 |
| Act.
If the amount
due is more than the amount received, the | 15 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 16 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 17 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 18 |
| Continuing Appropriation Act. If the amount due is less than | 19 |
| the
amount received, the
difference shall be termed the "Fiscal | 20 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 21 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 22 |
| the Pension Contribution Fund as soon as practicable
after the | 23 |
| certification.
| 24 |
| (g) For purposes of determining the required State | 25 |
| contribution to the System, the value of the System's assets | 26 |
| shall be equal to the actuarial value of the System's assets, |
|
|
|
SB1292 Enrolled |
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|
| 1 |
| which shall be calculated as follows: | 2 |
| As of June 30, 2008, the actuarial value of the System's | 3 |
| assets shall be equal to the market value of the assets as of | 4 |
| that date. In determining the actuarial value of the System's | 5 |
| assets for fiscal years after June 30, 2008, any actuarial | 6 |
| gains or losses from investment return incurred in a fiscal | 7 |
| year shall be recognized in equal annual amounts over the | 8 |
| 5-year period following that fiscal year. | 9 |
| (h) For purposes of determining the required State | 10 |
| contribution to the system for a particular year, the actuarial | 11 |
| value of assets shall be assumed to earn a rate of return equal | 12 |
| to the system's actuarially assumed rate of return. | 13 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950, | 14 |
| eff. 8-29-08.)
| 15 |
| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 16 |
| Sec. 15-155. Employer contributions.
| 17 |
| (a) The State of Illinois shall make contributions by | 18 |
| appropriations of
amounts which, together with the other | 19 |
| employer contributions from trust,
federal, and other funds, | 20 |
| employee contributions, income from investments,
and other | 21 |
| income of this System, will be sufficient to meet the cost of
| 22 |
| maintaining and administering the System on a 90% funded basis | 23 |
| in accordance
with actuarial recommendations.
| 24 |
| The Board shall determine the amount of State contributions | 25 |
| required for
each fiscal year on the basis of the actuarial |
|
|
|
SB1292 Enrolled |
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|
| 1 |
| tables and other assumptions
adopted by the Board and the | 2 |
| recommendations of the actuary, using the formula
in subsection | 3 |
| (a-1).
| 4 |
| (a-1) For State fiscal years 2011 through 2045, the minimum | 5 |
| contribution
to the System to be made by the State for each | 6 |
| fiscal year shall be an amount
determined by the System to be | 7 |
| sufficient to bring the total assets of the
System up to 90% of | 8 |
| the total actuarial liabilities of the System by the end of
| 9 |
| State fiscal year 2045. In making these determinations, the | 10 |
| required State
contribution shall be calculated each year as a | 11 |
| level percentage of payroll
over the years remaining to and | 12 |
| including fiscal year 2045 and shall be
determined under the | 13 |
| projected unit credit actuarial cost method.
| 14 |
| For State fiscal years 1996 through 2005, the State | 15 |
| contribution to
the System, as a percentage of the applicable | 16 |
| employee payroll, shall be
increased in equal annual increments | 17 |
| so that by State fiscal year 2011, the
State is contributing at | 18 |
| the rate required under this Section.
| 19 |
| Notwithstanding any other provision of this Article, the | 20 |
| total required State
contribution for State fiscal year 2006 is | 21 |
| $166,641,900.
| 22 |
| Notwithstanding any other provision of this Article, the | 23 |
| total required State
contribution for State fiscal year 2007 is | 24 |
| $252,064,100.
| 25 |
| For each of State fiscal years 2008 through 2009 2010 , the | 26 |
| State contribution to
the System, as a percentage of the |
|
|
|
SB1292 Enrolled |
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LRB096 08007 AMC 19275 b |
|
| 1 |
| applicable employee payroll, shall be
increased in equal annual | 2 |
| increments from the required State contribution for State | 3 |
| fiscal year 2007, so that by State fiscal year 2011, the
State | 4 |
| is contributing at the rate otherwise required under this | 5 |
| Section.
| 6 |
| Notwithstanding any other provision of this Article, the | 7 |
| total required State contribution for State fiscal year 2010 is | 8 |
| $702,514,000 and shall be made from the State Pensions Fund and | 9 |
| proceeds of bonds sold in fiscal year 2010 pursuant to Section | 10 |
| 7.2 of the General Obligation Bond Act, less (i) the pro rata | 11 |
| share of bond sale expenses determined by the System's share of | 12 |
| total bond proceeds, (ii) any amounts received from the General | 13 |
| Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 14 |
| proceeds due to the issuance of discounted bonds, if | 15 |
| applicable. | 16 |
| Beginning in State fiscal year 2046, the minimum State | 17 |
| contribution for
each fiscal year shall be the amount needed to | 18 |
| maintain the total assets of
the System at 90% of the total | 19 |
| actuarial liabilities of the System.
| 20 |
| Amounts received by the System pursuant to Section 25 of | 21 |
| the Budget Stabilization Act or Section 8.12 of the State | 22 |
| Finance Act in any fiscal year do not reduce and do not | 23 |
| constitute payment of any portion of the minimum State | 24 |
| contribution required under this Article in that fiscal year. | 25 |
| Such amounts shall not reduce, and shall not be included in the | 26 |
| calculation of, the required State contributions under this |
|
|
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| Article in any future year until the System has reached a | 2 |
| funding ratio of at least 90%. A reference in this Article to | 3 |
| the "required State contribution" or any substantially similar | 4 |
| term does not include or apply to any amounts payable to the | 5 |
| System under Section 25 of the Budget Stabilization Act. | 6 |
| Notwithstanding any other provision of this Section, the | 7 |
| required State
contribution for State fiscal year 2005 and for | 8 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 9 |
| under this Section and
certified under Section 15-165, shall | 10 |
| not exceed an amount equal to (i) the
amount of the required | 11 |
| State contribution that would have been calculated under
this | 12 |
| Section for that fiscal year if the System had not received any | 13 |
| payments
under subsection (d) of Section 7.2 of the General | 14 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 15 |
| total debt service payments for that fiscal
year on the bonds | 16 |
| issued for the purposes of that Section 7.2, as determined
and | 17 |
| certified by the Comptroller, that is the same as the System's | 18 |
| portion of
the total moneys distributed under subsection (d) of | 19 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 20 |
| this maximum for State fiscal years 2008 through 2010, however, | 21 |
| the amount referred to in item (i) shall be increased, as a | 22 |
| percentage of the applicable employee payroll, in equal | 23 |
| increments calculated from the sum of the required State | 24 |
| contribution for State fiscal year 2007 plus the applicable | 25 |
| portion of the State's total debt service payments for fiscal | 26 |
| year 2007 on the bonds issued for the purposes of Section 7.2 |
|
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| of the General
Obligation Bond Act, so that, by State fiscal | 2 |
| year 2011, the
State is contributing at the rate otherwise | 3 |
| required under this Section.
| 4 |
| (b) If an employee is paid from trust or federal funds, the | 5 |
| employer
shall pay to the Board contributions from those funds | 6 |
| which are
sufficient to cover the accruing normal costs on | 7 |
| behalf of the employee.
However, universities having employees | 8 |
| who are compensated out of local
auxiliary funds, income funds, | 9 |
| or service enterprise funds are not required
to pay such | 10 |
| contributions on behalf of those employees. The local auxiliary
| 11 |
| funds, income funds, and service enterprise funds of | 12 |
| universities shall not be
considered trust funds for the | 13 |
| purpose of this Article, but funds of alumni
associations, | 14 |
| foundations, and athletic associations which are affiliated | 15 |
| with
the universities included as employers under this Article | 16 |
| and other employers
which do not receive State appropriations | 17 |
| are considered to be trust funds for
the purpose of this | 18 |
| Article.
| 19 |
| (b-1) The City of Urbana and the City of Champaign shall | 20 |
| each make
employer contributions to this System for their | 21 |
| respective firefighter
employees who participate in this | 22 |
| System pursuant to subsection (h) of Section
15-107. The rate | 23 |
| of contributions to be made by those municipalities shall
be | 24 |
| determined annually by the Board on the basis of the actuarial | 25 |
| assumptions
adopted by the Board and the recommendations of the | 26 |
| actuary, and shall be
expressed as a percentage of salary for |
|
|
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| each such employee. The Board shall
certify the rate to the | 2 |
| affected municipalities as soon as may be practical.
The | 3 |
| employer contributions required under this subsection shall be | 4 |
| remitted by
the municipality to the System at the same time and | 5 |
| in the same manner as
employee contributions.
| 6 |
| (c) Through State fiscal year 1995: The total employer | 7 |
| contribution shall
be apportioned among the various funds of | 8 |
| the State and other employers,
whether trust, federal, or other | 9 |
| funds, in accordance with actuarial procedures
approved by the | 10 |
| Board. State of Illinois contributions for employers receiving
| 11 |
| State appropriations for personal services shall be payable | 12 |
| from appropriations
made to the employers or to the System. The | 13 |
| contributions for Class I
community colleges covering earnings | 14 |
| other than those paid from trust and
federal funds, shall be | 15 |
| payable solely from appropriations to the Illinois
Community | 16 |
| College Board or the System for employer contributions.
| 17 |
| (d) Beginning in State fiscal year 1996, the required State | 18 |
| contributions
to the System shall be appropriated directly to | 19 |
| the System and shall be payable
through vouchers issued in | 20 |
| accordance with subsection (c) of Section 15-165, except as | 21 |
| provided in subsection (g).
| 22 |
| (e) The State Comptroller shall draw warrants payable to | 23 |
| the System upon
proper certification by the System or by the | 24 |
| employer in accordance with the
appropriation laws and this | 25 |
| Code.
| 26 |
| (f) Normal costs under this Section means liability for
|
|
|
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| pensions and other benefits which accrues to the System because | 2 |
| of the
credits earned for service rendered by the participants | 3 |
| during the
fiscal year and expenses of administering the | 4 |
| System, but shall not
include the principal of or any | 5 |
| redemption premium or interest on any bonds
issued by the Board | 6 |
| or any expenses incurred or deposits required in
connection | 7 |
| therewith.
| 8 |
| (g) If the amount of a participant's earnings for any | 9 |
| academic year used to determine the final rate of earnings, | 10 |
| determined on a full-time equivalent basis, exceeds the amount | 11 |
| of his or her earnings with the same employer for the previous | 12 |
| academic year, determined on a full-time equivalent basis, by | 13 |
| more than 6%, the participant's employer shall pay to the | 14 |
| System, in addition to all other payments required under this | 15 |
| Section and in accordance with guidelines established by the | 16 |
| System, the present value of the increase in benefits resulting | 17 |
| from the portion of the increase in earnings that is in excess | 18 |
| of 6%. This present value shall be computed by the System on | 19 |
| the basis of the actuarial assumptions and tables used in the | 20 |
| most recent actuarial valuation of the System that is available | 21 |
| at the time of the computation. The System may require the | 22 |
| employer to provide any pertinent information or | 23 |
| documentation. | 24 |
| Whenever it determines that a payment is or may be required | 25 |
| under this subsection (g), the System shall calculate the | 26 |
| amount of the payment and bill the employer for that amount. |
|
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| The bill shall specify the calculations used to determine the | 2 |
| amount due. If the employer disputes the amount of the bill, it | 3 |
| may, within 30 days after receipt of the bill, apply to the | 4 |
| System in writing for a recalculation. The application must | 5 |
| specify in detail the grounds of the dispute and, if the | 6 |
| employer asserts that the calculation is subject to subsection | 7 |
| (h) or (i) of this Section, must include an affidavit setting | 8 |
| forth and attesting to all facts within the employer's | 9 |
| knowledge that are pertinent to the applicability of subsection | 10 |
| (h) or (i). Upon receiving a timely application for | 11 |
| recalculation, the System shall review the application and, if | 12 |
| appropriate, recalculate the amount due.
| 13 |
| The employer contributions required under this subsection | 14 |
| (f) may be paid in the form of a lump sum within 90 days after | 15 |
| receipt of the bill. If the employer contributions are not paid | 16 |
| within 90 days after receipt of the bill, then interest will be | 17 |
| charged at a rate equal to the System's annual actuarially | 18 |
| assumed rate of return on investment compounded annually from | 19 |
| the 91st day after receipt of the bill. Payments must be | 20 |
| concluded within 3 years after the employer's receipt of the | 21 |
| bill. | 22 |
| (h) This subsection (h) applies only to payments made or | 23 |
| salary increases given on or after June 1, 2005 but before July | 24 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 25 |
| require the System to refund any payments received before July | 26 |
| 31, 2006 (the effective date of Public Act 94-1057). |
|
|
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| 1 |
| When assessing payment for any amount due under subsection | 2 |
| (g), the System shall exclude earnings increases paid to | 3 |
| participants under contracts or collective bargaining | 4 |
| agreements entered into, amended, or renewed before June 1, | 5 |
| 2005.
| 6 |
| When assessing payment for any amount due under subsection | 7 |
| (g), the System shall exclude earnings increases paid to a | 8 |
| participant at a time when the participant is 10 or more years | 9 |
| from retirement eligibility under Section 15-135.
| 10 |
| When assessing payment for any amount due under subsection | 11 |
| (g), the System shall exclude earnings increases resulting from | 12 |
| overload work, including a contract for summer teaching, or | 13 |
| overtime when the employer has certified to the System, and the | 14 |
| System has approved the certification, that: (i) in the case of | 15 |
| overloads (A) the overload work is for the sole purpose of | 16 |
| academic instruction in excess of the standard number of | 17 |
| instruction hours for a full-time employee occurring during the | 18 |
| academic year that the overload is paid and (B) the earnings | 19 |
| increases are equal to or less than the rate of pay for | 20 |
| academic instruction computed using the participant's current | 21 |
| salary rate and work schedule; and (ii) in the case of | 22 |
| overtime, the overtime was necessary for the educational | 23 |
| mission. | 24 |
| When assessing payment for any amount due under subsection | 25 |
| (g), the System shall exclude any earnings increase resulting | 26 |
| from (i) a promotion for which the employee moves from one |
|
|
|
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| 1 |
| classification to a higher classification under the State | 2 |
| Universities Civil Service System, (ii) a promotion in academic | 3 |
| rank for a tenured or tenure-track faculty position, or (iii) a | 4 |
| promotion that the Illinois Community College Board has | 5 |
| recommended in accordance with subsection (k) of this Section. | 6 |
| These earnings increases shall be excluded only if the | 7 |
| promotion is to a position that has existed and been filled by | 8 |
| a member for no less than one complete academic year and the | 9 |
| earnings increase as a result of the promotion is an increase | 10 |
| that results in an amount no greater than the average salary | 11 |
| paid for other similar positions. | 12 |
| (i) When assessing payment for any amount due under | 13 |
| subsection (g), the System shall exclude any salary increase | 14 |
| described in subsection (h) of this Section given on or after | 15 |
| July 1, 2011 but before July 1, 2014 under a contract or | 16 |
| collective bargaining agreement entered into, amended, or | 17 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 18 |
| Notwithstanding any other provision of this Section, any | 19 |
| payments made or salary increases given after June 30, 2014 | 20 |
| shall be used in assessing payment for any amount due under | 21 |
| subsection (g) of this Section.
| 22 |
| (j) The System shall prepare a report and file copies of | 23 |
| the report with the Governor and the General Assembly by | 24 |
| January 1, 2007 that contains all of the following information: | 25 |
| (1) The number of recalculations required by the | 26 |
| changes made to this Section by Public Act 94-1057 for each |
|
|
|
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| 1 |
| employer. | 2 |
| (2) The dollar amount by which each employer's | 3 |
| contribution to the System was changed due to | 4 |
| recalculations required by Public Act 94-1057. | 5 |
| (3) The total amount the System received from each | 6 |
| employer as a result of the changes made to this Section by | 7 |
| Public Act 94-4. | 8 |
| (4) The increase in the required State contribution | 9 |
| resulting from the changes made to this Section by Public | 10 |
| Act 94-1057. | 11 |
| (k) The Illinois Community College Board shall adopt rules | 12 |
| for recommending lists of promotional positions submitted to | 13 |
| the Board by community colleges and for reviewing the | 14 |
| promotional lists on an annual basis. When recommending | 15 |
| promotional lists, the Board shall consider the similarity of | 16 |
| the positions submitted to those positions recognized for State | 17 |
| universities by the State Universities Civil Service System. | 18 |
| The Illinois Community College Board shall file a copy of its | 19 |
| findings with the System. The System shall consider the | 20 |
| findings of the Illinois Community College Board when making | 21 |
| determinations under this Section. The System shall not exclude | 22 |
| any earnings increases resulting from a promotion when the | 23 |
| promotion was not submitted by a community college. Nothing in | 24 |
| this subsection (k) shall require any community college to | 25 |
| submit any information to the Community College Board.
| 26 |
| (l) For purposes of determining the required State |
|
|
|
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| 1 |
| contribution to the System, the value of the System's assets | 2 |
| shall be equal to the actuarial value of the System's assets, | 3 |
| which shall be calculated as follows: | 4 |
| As of June 30, 2008, the actuarial value of the System's | 5 |
| assets shall be equal to the market value of the assets as of | 6 |
| that date. In determining the actuarial value of the System's | 7 |
| assets for fiscal years after June 30, 2008, any actuarial | 8 |
| gains or losses from investment return incurred in a fiscal | 9 |
| year shall be recognized in equal annual amounts over the | 10 |
| 5-year period following that fiscal year. | 11 |
| (m) For purposes of determining the required State | 12 |
| contribution to the system for a particular year, the actuarial | 13 |
| value of assets shall be assumed to earn a rate of return equal | 14 |
| to the system's actuarially assumed rate of return. | 15 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 16 |
| eff. 7-31-06; 95-331, eff. 8-21-07; 95-950, eff. 8-29-08.)
| 17 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 18 |
| Sec. 16-158. Contributions by State and other employing | 19 |
| units.
| 20 |
| (a) The State shall make contributions to the System by | 21 |
| means of
appropriations from the Common School Fund and other | 22 |
| State funds of amounts
which, together with other employer | 23 |
| contributions, employee contributions,
investment income, and | 24 |
| other income, will be sufficient to meet the cost of
| 25 |
| maintaining and administering the System on a 90% funded basis |
|
|
|
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| 1 |
| in accordance
with actuarial recommendations.
| 2 |
| The Board shall determine the amount of State contributions | 3 |
| required for
each fiscal year on the basis of the actuarial | 4 |
| tables and other assumptions
adopted by the Board and the | 5 |
| recommendations of the actuary, using the formula
in subsection | 6 |
| (b-3).
| 7 |
| (a-1) Annually, on or before November 15, the Board shall | 8 |
| certify to the
Governor the amount of the required State | 9 |
| contribution for the coming fiscal
year. The certification | 10 |
| shall include a copy of the actuarial recommendations
upon | 11 |
| which it is based.
| 12 |
| On or before May 1, 2004, the Board shall recalculate and | 13 |
| recertify to
the Governor the amount of the required State | 14 |
| contribution to the System for
State fiscal year 2005, taking | 15 |
| into account the amounts appropriated to and
received by the | 16 |
| System under subsection (d) of Section 7.2 of the General
| 17 |
| Obligation Bond Act.
| 18 |
| On or before July 1, 2005, the Board shall recalculate and | 19 |
| recertify
to the Governor the amount of the required State
| 20 |
| contribution to the System for State fiscal year 2006, taking | 21 |
| into account the changes in required State contributions made | 22 |
| by this amendatory Act of the 94th General Assembly.
| 23 |
| (b) Through State fiscal year 1995, the State contributions | 24 |
| shall be
paid to the System in accordance with Section 18-7 of | 25 |
| the School Code.
| 26 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day |
|
|
|
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| 1 |
| of each month,
or as soon thereafter as may be practicable, the | 2 |
| Board shall submit vouchers
for payment of State contributions | 3 |
| to the System, in a total monthly amount of
one-twelfth of the | 4 |
| required annual State contribution certified under
subsection | 5 |
| (a-1).
From the
effective date of this amendatory Act of the | 6 |
| 93rd General Assembly
through June 30, 2004, the Board shall | 7 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 8 |
| excess of the fiscal year 2004
certified contribution amount | 9 |
| determined under this Section
after taking into consideration | 10 |
| the transfer to the System
under subsection (a) of Section | 11 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 12 |
| the State Comptroller and
Treasurer by warrants drawn on the | 13 |
| funds appropriated to the System for that
fiscal year.
| 14 |
| If in any month the amount remaining unexpended from all | 15 |
| other appropriations
to the System for the applicable fiscal | 16 |
| year (including the appropriations to
the System under Section | 17 |
| 8.12 of the State Finance Act and Section 1 of the
State | 18 |
| Pension Funds Continuing Appropriation Act) is less than the | 19 |
| amount
lawfully vouchered under this subsection, the | 20 |
| difference shall be paid from the
Common School Fund under the | 21 |
| continuing appropriation authority provided in
Section 1.1 of | 22 |
| the State Pension Funds Continuing Appropriation Act.
| 23 |
| (b-2) Allocations from the Common School Fund apportioned | 24 |
| to school
districts not coming under this System shall not be | 25 |
| diminished or affected by
the provisions of this Article.
| 26 |
| (b-3) For State fiscal years 2011 through 2045, the minimum |
|
|
|
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| 1 |
| contribution
to the System to be made by the State for each | 2 |
| fiscal year shall be an amount
determined by the System to be | 3 |
| sufficient to bring the total assets of the
System up to 90% of | 4 |
| the total actuarial liabilities of the System by the end of
| 5 |
| State fiscal year 2045. In making these determinations, the | 6 |
| required State
contribution shall be calculated each year as a | 7 |
| level percentage of payroll
over the years remaining to and | 8 |
| including fiscal year 2045 and shall be
determined under the | 9 |
| projected unit credit actuarial cost method.
| 10 |
| For State fiscal years 1996 through 2005, the State | 11 |
| contribution to the
System, as a percentage of the applicable | 12 |
| employee payroll, shall be increased
in equal annual increments | 13 |
| so that by State fiscal year 2011, the State is
contributing at | 14 |
| the rate required under this Section; except that in the
| 15 |
| following specified State fiscal years, the State contribution | 16 |
| to the System
shall not be less than the following indicated | 17 |
| percentages of the applicable
employee payroll, even if the | 18 |
| indicated percentage will produce a State
contribution in | 19 |
| excess of the amount otherwise required under this subsection
| 20 |
| and subsection (a), and notwithstanding any contrary | 21 |
| certification made under
subsection (a-1) before the effective | 22 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 23 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 24 |
| 2003; and
13.56% in FY 2004.
| 25 |
| Notwithstanding any other provision of this Article, the | 26 |
| total required State
contribution for State fiscal year 2006 is |
|
|
|
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|
| 1 |
| $534,627,700.
| 2 |
| Notwithstanding any other provision of this Article, the | 3 |
| total required State
contribution for State fiscal year 2007 is | 4 |
| $738,014,500.
| 5 |
| For each of State fiscal years 2008 through 2009 2010 , the | 6 |
| State contribution to
the System, as a percentage of the | 7 |
| applicable employee payroll, shall be
increased in equal annual | 8 |
| increments from the required State contribution for State | 9 |
| fiscal year 2007, so that by State fiscal year 2011, the
State | 10 |
| is contributing at the rate otherwise required under this | 11 |
| Section.
| 12 |
| Notwithstanding any other provision of this Article, the | 13 |
| total required State contribution for State fiscal year 2010 is | 14 |
| $2,089,268,000 and shall be made from the proceeds of bonds | 15 |
| sold in fiscal year 2010 pursuant to Section 7.2 of the General | 16 |
| Obligation Bond Act, less (i) the pro rata share of bond sale | 17 |
| expenses determined by the System's share of total bond | 18 |
| proceeds, (ii) any amounts received from the Common School Fund | 19 |
| in fiscal year 2010, and (iii) any reduction in bond proceeds | 20 |
| due to the issuance of discounted bonds, if applicable. | 21 |
| Beginning in State fiscal year 2046, the minimum State | 22 |
| contribution for
each fiscal year shall be the amount needed to | 23 |
| maintain the total assets of
the System at 90% of the total | 24 |
| actuarial liabilities of the System.
| 25 |
| Amounts received by the System pursuant to Section 25 of | 26 |
| the Budget Stabilization Act or Section 8.12 of the State |
|
|
|
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|
| 1 |
| Finance Act in any fiscal year do not reduce and do not | 2 |
| constitute payment of any portion of the minimum State | 3 |
| contribution required under this Article in that fiscal year. | 4 |
| Such amounts shall not reduce, and shall not be included in the | 5 |
| calculation of, the required State contributions under this | 6 |
| Article in any future year until the System has reached a | 7 |
| funding ratio of at least 90%. A reference in this Article to | 8 |
| the "required State contribution" or any substantially similar | 9 |
| term does not include or apply to any amounts payable to the | 10 |
| System under Section 25 of the Budget Stabilization Act. | 11 |
| Notwithstanding any other provision of this Section, the | 12 |
| required State
contribution for State fiscal year 2005 and for | 13 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 14 |
| under this Section and
certified under subsection (a-1), shall | 15 |
| not exceed an amount equal to (i) the
amount of the required | 16 |
| State contribution that would have been calculated under
this | 17 |
| Section for that fiscal year if the System had not received any | 18 |
| payments
under subsection (d) of Section 7.2 of the General | 19 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 20 |
| total debt service payments for that fiscal
year on the bonds | 21 |
| issued for the purposes of that Section 7.2, as determined
and | 22 |
| certified by the Comptroller, that is the same as the System's | 23 |
| portion of
the total moneys distributed under subsection (d) of | 24 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 25 |
| this maximum for State fiscal years 2008 through 2010, however, | 26 |
| the amount referred to in item (i) shall be increased, as a |
|
|
|
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|
| 1 |
| percentage of the applicable employee payroll, in equal | 2 |
| increments calculated from the sum of the required State | 3 |
| contribution for State fiscal year 2007 plus the applicable | 4 |
| portion of the State's total debt service payments for fiscal | 5 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 6 |
| of the General
Obligation Bond Act, so that, by State fiscal | 7 |
| year 2011, the
State is contributing at the rate otherwise | 8 |
| required under this Section.
| 9 |
| (c) Payment of the required State contributions and of all | 10 |
| pensions,
retirement annuities, death benefits, refunds, and | 11 |
| other benefits granted
under or assumed by this System, and all | 12 |
| expenses in connection with the
administration and operation | 13 |
| thereof, are obligations of the State.
| 14 |
| If members are paid from special trust or federal funds | 15 |
| which are
administered by the employing unit, whether school | 16 |
| district or other
unit, the employing unit shall pay to the | 17 |
| System from such
funds the full accruing retirement costs based | 18 |
| upon that
service, as determined by the System. Employer | 19 |
| contributions, based on
salary paid to members from federal | 20 |
| funds, may be forwarded by the distributing
agency of the State | 21 |
| of Illinois to the System prior to allocation, in an
amount | 22 |
| determined in accordance with guidelines established by such
| 23 |
| agency and the System.
| 24 |
| (d) Effective July 1, 1986, any employer of a teacher as | 25 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 26 |
| employer's normal cost
of benefits based upon the teacher's |
|
|
|
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| 1 |
| service, in addition to
employee contributions, as determined | 2 |
| by the System. Such employer
contributions shall be forwarded | 3 |
| monthly in accordance with guidelines
established by the | 4 |
| System.
| 5 |
| However, with respect to benefits granted under Section | 6 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 7 |
| of Section 16-106, the
employer's contribution shall be 12% | 8 |
| (rather than 20%) of the member's
highest annual salary rate | 9 |
| for each year of creditable service granted, and
the employer | 10 |
| shall also pay the required employee contribution on behalf of
| 11 |
| the teacher. For the purposes of Sections 16-133.4 and | 12 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 13 |
| 16-106 who is serving in that capacity
while on leave of | 14 |
| absence from another employer under this Article shall not
be | 15 |
| considered an employee of the employer from which the teacher | 16 |
| is on leave.
| 17 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 18 |
| shall pay to the System an employer contribution computed as | 19 |
| follows:
| 20 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 21 |
| employer
contribution shall be equal to 0.3% of each | 22 |
| teacher's salary.
| 23 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 24 |
| contribution shall be equal to 0.58% of each teacher's | 25 |
| salary.
| 26 |
| The school district or other employing unit may pay these |
|
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| employer
contributions out of any source of funding available | 2 |
| for that purpose and
shall forward the contributions to the | 3 |
| System on the schedule established
for the payment of member | 4 |
| contributions.
| 5 |
| These employer contributions are intended to offset a | 6 |
| portion of the cost
to the System of the increases in | 7 |
| retirement benefits resulting from this
amendatory Act of 1998.
| 8 |
| Each employer of teachers is entitled to a credit against | 9 |
| the contributions
required under this subsection (e) with | 10 |
| respect to salaries paid to teachers
for the period January 1, | 11 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 12 |
| employer under subsection (a-5) of Section 6.6 of the State | 13 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 14 |
| paid to teachers for that
period.
| 15 |
| The additional 1% employee contribution required under | 16 |
| Section 16-152 by
this amendatory Act of 1998 is the | 17 |
| responsibility of the teacher and not the
teacher's employer, | 18 |
| unless the employer agrees, through collective bargaining
or | 19 |
| otherwise, to make the contribution on behalf of the teacher.
| 20 |
| If an employer is required by a contract in effect on May | 21 |
| 1, 1998 between the
employer and an employee organization to | 22 |
| pay, on behalf of all its full-time
employees
covered by this | 23 |
| Article, all mandatory employee contributions required under
| 24 |
| this Article, then the employer shall be excused from paying | 25 |
| the employer
contribution required under this subsection (e) | 26 |
| for the balance of the term
of that contract. The employer and |
|
|
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| 1 |
| the employee organization shall jointly
certify to the System | 2 |
| the existence of the contractual requirement, in such
form as | 3 |
| the System may prescribe. This exclusion shall cease upon the
| 4 |
| termination, extension, or renewal of the contract at any time | 5 |
| after May 1,
1998.
| 6 |
| (f) If the amount of a teacher's salary for any school year | 7 |
| used to determine final average salary exceeds the member's | 8 |
| annual full-time salary rate with the same employer for the | 9 |
| previous school year by more than 6%, the teacher's employer | 10 |
| shall pay to the System, in addition to all other payments | 11 |
| required under this Section and in accordance with guidelines | 12 |
| established by the System, the present value of the increase in | 13 |
| benefits resulting from the portion of the increase in salary | 14 |
| that is in excess of 6%. This present value shall be computed | 15 |
| by the System on the basis of the actuarial assumptions and | 16 |
| tables used in the most recent actuarial valuation of the | 17 |
| System that is available at the time of the computation. If a | 18 |
| teacher's salary for the 2005-2006 school year is used to | 19 |
| determine final average salary under this subsection (f), then | 20 |
| the changes made to this subsection (f) by Public Act 94-1057 | 21 |
| shall apply in calculating whether the increase in his or her | 22 |
| salary is in excess of 6%. For the purposes of this Section, | 23 |
| change in employment under Section 10-21.12 of the School Code | 24 |
| on or after June 1, 2005 shall constitute a change in employer. | 25 |
| The System may require the employer to provide any pertinent | 26 |
| information or documentation.
The changes made to this |
|
|
|
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| subsection (f) by this amendatory Act of the 94th General | 2 |
| Assembly apply without regard to whether the teacher was in | 3 |
| service on or after its effective date.
| 4 |
| Whenever it determines that a payment is or may be required | 5 |
| under this subsection, the System shall calculate the amount of | 6 |
| the payment and bill the employer for that amount. The bill | 7 |
| shall specify the calculations used to determine the amount | 8 |
| due. If the employer disputes the amount of the bill, it may, | 9 |
| within 30 days after receipt of the bill, apply to the System | 10 |
| in writing for a recalculation. The application must specify in | 11 |
| detail the grounds of the dispute and, if the employer asserts | 12 |
| that the calculation is subject to subsection (g) or (h) of | 13 |
| this Section, must include an affidavit setting forth and | 14 |
| attesting to all facts within the employer's knowledge that are | 15 |
| pertinent to the applicability of that subsection. Upon | 16 |
| receiving a timely application for recalculation, the System | 17 |
| shall review the application and, if appropriate, recalculate | 18 |
| the amount due.
| 19 |
| The employer contributions required under this subsection | 20 |
| (f) may be paid in the form of a lump sum within 90 days after | 21 |
| receipt of the bill. If the employer contributions are not paid | 22 |
| within 90 days after receipt of the bill, then interest will be | 23 |
| charged at a rate equal to the System's annual actuarially | 24 |
| assumed rate of return on investment compounded annually from | 25 |
| the 91st day after receipt of the bill. Payments must be | 26 |
| concluded within 3 years after the employer's receipt of the |
|
|
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| bill.
| 2 |
| (g) This subsection (g) applies only to payments made or | 3 |
| salary increases given on or after June 1, 2005 but before July | 4 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 5 |
| require the System to refund any payments received before
July | 6 |
| 31, 2006 (the effective date of Public Act 94-1057). | 7 |
| When assessing payment for any amount due under subsection | 8 |
| (f), the System shall exclude salary increases paid to teachers | 9 |
| under contracts or collective bargaining agreements entered | 10 |
| into, amended, or renewed before June 1, 2005.
| 11 |
| When assessing payment for any amount due under subsection | 12 |
| (f), the System shall exclude salary increases paid to a | 13 |
| teacher at a time when the teacher is 10 or more years from | 14 |
| retirement eligibility under Section 16-132 or 16-133.2.
| 15 |
| When assessing payment for any amount due under subsection | 16 |
| (f), the System shall exclude salary increases resulting from | 17 |
| overload work, including summer school, when the school | 18 |
| district has certified to the System, and the System has | 19 |
| approved the certification, that (i) the overload work is for | 20 |
| the sole purpose of classroom instruction in excess of the | 21 |
| standard number of classes for a full-time teacher in a school | 22 |
| district during a school year and (ii) the salary increases are | 23 |
| equal to or less than the rate of pay for classroom instruction | 24 |
| computed on the teacher's current salary and work schedule.
| 25 |
| When assessing payment for any amount due under subsection | 26 |
| (f), the System shall exclude a salary increase resulting from |
|
|
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| a promotion (i) for which the employee is required to hold a | 2 |
| certificate or supervisory endorsement issued by the State | 3 |
| Teacher Certification Board that is a different certification | 4 |
| or supervisory endorsement than is required for the teacher's | 5 |
| previous position and (ii) to a position that has existed and | 6 |
| been filled by a member for no less than one complete academic | 7 |
| year and the salary increase from the promotion is an increase | 8 |
| that results in an amount no greater than the lesser of the | 9 |
| average salary paid for other similar positions in the district | 10 |
| requiring the same certification or the amount stipulated in | 11 |
| the collective bargaining agreement for a similar position | 12 |
| requiring the same certification.
| 13 |
| When assessing payment for any amount due under subsection | 14 |
| (f), the System shall exclude any payment to the teacher from | 15 |
| the State of Illinois or the State Board of Education over | 16 |
| which the employer does not have discretion, notwithstanding | 17 |
| that the payment is included in the computation of final | 18 |
| average salary.
| 19 |
| (h) When assessing payment for any amount due under | 20 |
| subsection (f), the System shall exclude any salary increase | 21 |
| described in subsection (g) of this Section given on or after | 22 |
| July 1, 2011 but before July 1, 2014 under a contract or | 23 |
| collective bargaining agreement entered into, amended, or | 24 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 25 |
| Notwithstanding any other provision of this Section, any | 26 |
| payments made or salary increases given after June 30, 2014 |
|
|
|
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| shall be used in assessing payment for any amount due under | 2 |
| subsection (f) of this Section.
| 3 |
| (i) The System shall prepare a report and file copies of | 4 |
| the report with the Governor and the General Assembly by | 5 |
| January 1, 2007 that contains all of the following information: | 6 |
| (1) The number of recalculations required by the | 7 |
| changes made to this Section by Public Act 94-1057 for each | 8 |
| employer. | 9 |
| (2) The dollar amount by which each employer's | 10 |
| contribution to the System was changed due to | 11 |
| recalculations required by Public Act 94-1057. | 12 |
| (3) The total amount the System received from each | 13 |
| employer as a result of the changes made to this Section by | 14 |
| Public Act 94-4. | 15 |
| (4) The increase in the required State contribution | 16 |
| resulting from the changes made to this Section by Public | 17 |
| Act 94-1057.
| 18 |
| (j) For purposes of determining the required State | 19 |
| contribution to the System, the value of the System's assets | 20 |
| shall be equal to the actuarial value of the System's assets, | 21 |
| which shall be calculated as follows: | 22 |
| As of June 30, 2008, the actuarial value of the System's | 23 |
| assets shall be equal to the market value of the assets as of | 24 |
| that date. In determining the actuarial value of the System's | 25 |
| assets for fiscal years after June 30, 2008, any actuarial | 26 |
| gains or losses from investment return incurred in a fiscal |
|
|
|
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| 1 |
| year shall be recognized in equal annual amounts over the | 2 |
| 5-year period following that fiscal year. | 3 |
| (k) For purposes of determining the required State | 4 |
| contribution to the system for a particular year, the actuarial | 5 |
| value of assets shall be assumed to earn a rate of return equal | 6 |
| to the system's actuarially assumed rate of return. | 7 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, | 8 |
| eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07; | 9 |
| 95-950, eff. 8-29-08.)
| 10 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 11 |
| Sec. 18-131. Financing; employer contributions.
| 12 |
| (a) The State of Illinois shall make contributions to this | 13 |
| System by
appropriations of the amounts which, together with | 14 |
| the contributions of
participants, net earnings on | 15 |
| investments, and other income, will meet the
costs of | 16 |
| maintaining and administering this System on a 90% funded basis | 17 |
| in
accordance with actuarial recommendations.
| 18 |
| (b) The Board shall determine the amount of State | 19 |
| contributions
required for each fiscal year on the basis of the | 20 |
| actuarial tables and other
assumptions adopted by the Board and | 21 |
| the prescribed rate of interest, using
the formula in | 22 |
| subsection (c).
| 23 |
| (c) For State fiscal years 2011 through 2045, the minimum | 24 |
| contribution
to the System to be made by the State for each | 25 |
| fiscal year shall be an amount
determined by the System to be |
|
|
|
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| 1 |
| sufficient to bring the total assets of the
System up to 90% of | 2 |
| the total actuarial liabilities of the System by the end of
| 3 |
| State fiscal year 2045. In making these determinations, the | 4 |
| required State
contribution shall be calculated each year as a | 5 |
| level percentage of payroll
over the years remaining to and | 6 |
| including fiscal year 2045 and shall be
determined under the | 7 |
| projected unit credit actuarial cost method.
| 8 |
| For State fiscal years 1996 through 2005, the State | 9 |
| contribution to
the System, as a percentage of the applicable | 10 |
| employee payroll, shall be
increased in equal annual increments | 11 |
| so that by State fiscal year 2011, the
State is contributing at | 12 |
| the rate required under this Section.
| 13 |
| Notwithstanding any other provision of this Article, the | 14 |
| total required State
contribution for State fiscal year 2006 is | 15 |
| $29,189,400.
| 16 |
| Notwithstanding any other provision of this Article, the | 17 |
| total required State
contribution for State fiscal year 2007 is | 18 |
| $35,236,800.
| 19 |
| For each of State fiscal years 2008 through 2009 2010 , the | 20 |
| State contribution to
the System, as a percentage of the | 21 |
| applicable employee payroll, shall be
increased in equal annual | 22 |
| increments from the required State contribution for State | 23 |
| fiscal year 2007, so that by State fiscal year 2011, the
State | 24 |
| is contributing at the rate otherwise required under this | 25 |
| Section.
| 26 |
| Notwithstanding any other provision of this Article, the |
|
|
|
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| 1 |
| total required State contribution for State fiscal year 2010 is | 2 |
| $78,832,000 and shall be made from the proceeds of bonds sold | 3 |
| in fiscal year 2010 pursuant to Section 7.2 of the General | 4 |
| Obligation Bond Act, less (i) the pro rata share of bond sale | 5 |
| expenses determined by the System's share of total bond | 6 |
| proceeds, (ii) any amounts received from the General Revenue | 7 |
| Fund in fiscal year 2010, and (iii) any reduction in bond | 8 |
| proceeds due to the issuance of discounted bonds, if | 9 |
| applicable. | 10 |
| Beginning in State fiscal year 2046, the minimum State | 11 |
| contribution for
each fiscal year shall be the amount needed to | 12 |
| maintain the total assets of
the System at 90% of the total | 13 |
| actuarial liabilities of the System.
| 14 |
| Amounts received by the System pursuant to Section 25 of | 15 |
| the Budget Stabilization Act or Section 8.12 of the State | 16 |
| Finance Act in any fiscal year do not reduce and do not | 17 |
| constitute payment of any portion of the minimum State | 18 |
| contribution required under this Article in that fiscal year. | 19 |
| Such amounts shall not reduce, and shall not be included in the | 20 |
| calculation of, the required State contributions under this | 21 |
| Article in any future year until the System has reached a | 22 |
| funding ratio of at least 90%. A reference in this Article to | 23 |
| the "required State contribution" or any substantially similar | 24 |
| term does not include or apply to any amounts payable to the | 25 |
| System under Section 25 of the Budget Stabilization Act.
| 26 |
| Notwithstanding any other provision of this Section, the |
|
|
|
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| 1 |
| required State
contribution for State fiscal year 2005 and for | 2 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 3 |
| under this Section and
certified under Section 18-140, shall | 4 |
| not exceed an amount equal to (i) the
amount of the required | 5 |
| State contribution that would have been calculated under
this | 6 |
| Section for that fiscal year if the System had not received any | 7 |
| payments
under subsection (d) of Section 7.2 of the General | 8 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 9 |
| total debt service payments for that fiscal
year on the bonds | 10 |
| issued for the purposes of that Section 7.2, as determined
and | 11 |
| certified by the Comptroller, that is the same as the System's | 12 |
| portion of
the total moneys distributed under subsection (d) of | 13 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 14 |
| this maximum for State fiscal years 2008 through 2010, however, | 15 |
| the amount referred to in item (i) shall be increased, as a | 16 |
| percentage of the applicable employee payroll, in equal | 17 |
| increments calculated from the sum of the required State | 18 |
| contribution for State fiscal year 2007 plus the applicable | 19 |
| portion of the State's total debt service payments for fiscal | 20 |
| year 2007 on the bonds issued for the purposes of Section 7.2 | 21 |
| of the General
Obligation Bond Act, so that, by State fiscal | 22 |
| year 2011, the
State is contributing at the rate otherwise | 23 |
| required under this Section.
| 24 |
| (d) For purposes of determining the required State | 25 |
| contribution to the System, the value of the System's assets | 26 |
| shall be equal to the actuarial value of the System's assets, |
|
|
|
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| 1 |
| which shall be calculated as follows: | 2 |
| As of June 30, 2008, the actuarial value of the System's | 3 |
| assets shall be equal to the market value of the assets as of | 4 |
| that date. In determining the actuarial value of the System's | 5 |
| assets for fiscal years after June 30, 2008, any actuarial | 6 |
| gains or losses from investment return incurred in a fiscal | 7 |
| year shall be recognized in equal annual amounts over the | 8 |
| 5-year period following that fiscal year. | 9 |
| (e) For purposes of determining the required State | 10 |
| contribution to the system for a particular year, the actuarial | 11 |
| value of assets shall be assumed to earn a rate of return equal | 12 |
| to the system's actuarially assumed rate of return. | 13 |
| (Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950, | 14 |
| eff. 8-29-08.)
| 15 |
| Section 15. The State Pension Funds Continuing | 16 |
| Appropriation Act is amended by changing Sections 1.1 and 1.2 | 17 |
| as follows:
| 18 |
| (40 ILCS 15/1.1)
| 19 |
| Sec. 1.1. Appropriations to certain retirement systems.
| 20 |
| (a) There is hereby appropriated from the General Revenue | 21 |
| Fund to the
General Assembly Retirement System, on a continuing | 22 |
| monthly basis, the amount,
if any, by which the total available | 23 |
| amount of all other appropriations to that
retirement system | 24 |
| for the payment of State contributions is less than the total
|
|
|
|
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|
| 1 |
| amount of the vouchers for required State contributions | 2 |
| lawfully submitted by
the retirement system for that month | 3 |
| under Section 2-134 of the Illinois
Pension Code.
| 4 |
| (b) There is hereby appropriated from the General Revenue | 5 |
| Fund to the
State Universities Retirement System, on a | 6 |
| continuing monthly basis, the
amount, if any, by which the | 7 |
| total available amount of all other appropriations
to that | 8 |
| retirement system for the payment of State contributions, | 9 |
| including
any deficiency in the required contributions of the | 10 |
| optional
retirement program established under Section 15-158.2 | 11 |
| of the Illinois Pension
Code,
is less than
the total amount of | 12 |
| the vouchers for required State contributions lawfully
| 13 |
| submitted by the retirement system for that month under Section | 14 |
| 15-165 of the
Illinois Pension Code.
| 15 |
| (c) There is hereby appropriated from the Common School | 16 |
| Fund to the
Teachers' Retirement System of the State of | 17 |
| Illinois,
on a continuing monthly basis, the amount, if any, by | 18 |
| which the total
available amount of all other appropriations to | 19 |
| that retirement system for the
payment of State contributions | 20 |
| is less than the total amount of the vouchers
for required | 21 |
| State contributions lawfully submitted by the retirement | 22 |
| system
for that month under Section 16-158 of the Illinois | 23 |
| Pension Code.
| 24 |
| (d) There is hereby appropriated from the General Revenue | 25 |
| Fund to the Judges
Retirement System of Illinois, on a | 26 |
| continuing monthly basis, the amount, if
any, by which the |
|
|
|
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| 1 |
| total available amount of all other appropriations to that
| 2 |
| retirement system for the payment of State contributions is | 3 |
| less than the total
amount of the vouchers for required State | 4 |
| contributions lawfully submitted by
the retirement system for | 5 |
| that month under Section 18-140 of the Illinois
Pension Code.
| 6 |
| (e) The continuing appropriations provided by this Section | 7 |
| shall first
be available in State fiscal year 1996.
| 8 |
| (f) For State fiscal year 2010 only, the continuing | 9 |
| appropriations provided by this Section are equal to the amount | 10 |
| certified by each System on or before December 31, 2008, less | 11 |
| (i) the gross proceeds of the bonds sold in fiscal year 2010 | 12 |
| under the authorization contained in subsection (a) of Section | 13 |
| 7.2 of the General Obligation Bond Act and (ii) any amounts | 14 |
| received from the State Pensions Fund. | 15 |
| (Source: P.A. 90-448, eff. 8-16-97.)
| 16 |
| (40 ILCS 15/1.2)
| 17 |
| Sec. 1.2. Appropriations for the State Employees' | 18 |
| Retirement System.
| 19 |
| (a) From each fund from which an amount is appropriated for | 20 |
| personal
services to a department or other employer under | 21 |
| Article 14 of the Illinois
Pension Code, there is hereby | 22 |
| appropriated to that department or other
employer, on a | 23 |
| continuing annual basis for each State fiscal year, an
| 24 |
| additional amount equal to the amount, if any, by which (1) an | 25 |
| amount equal
to the percentage of the personal services line |
|
|
|
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| 1 |
| item for that department or
employer from that fund for that | 2 |
| fiscal year that the Board of Trustees of
the State Employees' | 3 |
| Retirement System of Illinois has certified under Section
| 4 |
| 14-135.08 of the Illinois Pension Code to be necessary to meet | 5 |
| the State's
obligation under Section 14-131 of the Illinois | 6 |
| Pension Code for that fiscal
year, exceeds (2) the amounts | 7 |
| otherwise appropriated to that department or
employer from that | 8 |
| fund for State contributions to the State Employees'
Retirement | 9 |
| System for that fiscal year.
From the effective
date of this | 10 |
| amendatory Act of the 93rd General Assembly
through the final | 11 |
| payment from a department or employer's
personal services line | 12 |
| item for fiscal year 2004, payments to
the State Employees' | 13 |
| Retirement System that otherwise would
have been made under | 14 |
| this subsection (a) shall be governed by
the provisions in | 15 |
| subsection (a-1).
| 16 |
| (a-1) If a Fiscal Year 2004 Shortfall is certified under | 17 |
| subsection (f) of
Section 14-131 of the Illinois Pension Code, | 18 |
| there is hereby appropriated
to the State Employees' Retirement | 19 |
| System of Illinois on a
continuing basis from the General | 20 |
| Revenue Fund an additional
aggregate amount equal to the Fiscal | 21 |
| Year 2004 Shortfall.
| 22 |
| (b) The continuing appropriations provided for by this | 23 |
| Section shall first
be available in State fiscal year 1996.
| 24 |
| (c) Beginning in Fiscal Year 2005, any continuing | 25 |
| appropriation under this Section arising out of an | 26 |
| appropriation for personal services from the Road Fund to the |
|
|
|
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| Department of State Police or the Secretary of State shall be | 2 |
| payable from the General Revenue Fund rather than the Road | 3 |
| Fund.
| 4 |
| (d) For State fiscal year 2010 only, a continuing | 5 |
| appropriation is provided to the State Employees' Retirement | 6 |
| System equal to the amount certified by the System on or before | 7 |
| December 31, 2008, less the gross proceeds of the bonds sold in | 8 |
| fiscal year 2010 under the authorization contained in | 9 |
| subsection (a) of Section 7.2 of the General Obligation Bond | 10 |
| Act. | 11 |
| (Source: P.A. 93-665, eff. 3-5-04; 93-1067, eff. 1-15-05.)
| 12 |
| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law. |
|