Full Text of HB3755 95th General Assembly
HB3755ham001 95TH GENERAL ASSEMBLY
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Rep. Michael J. Madigan
Filed: 7/5/2007
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LRB095 07746 AMC 37924 a |
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| AMENDMENT TO HOUSE BILL 3755
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| AMENDMENT NO. ______. Amend House Bill 3755 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The General Obligation Bond Act is amended by | 5 |
| changing Sections 2, 7.2, and 9 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 | 8 |
| authorized to
issue, sell and provide for the retirement of | 9 |
| General Obligation Bonds of
the State of Illinois for the | 10 |
| categories and specific purposes expressed in
Sections 2 | 11 |
| through 8 of this Act, in the total amount of $43,658,149,369
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| $27,658,149,369 .
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| The bonds authorized in this Section 2 and in Section 16 of | 14 |
| this Act are
herein called "Bonds".
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| Of the total amount of Bonds authorized in this Act, up to | 16 |
| $2,200,000,000
in aggregate original principal amount may be |
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| issued and sold in accordance
with the Baccalaureate Savings | 2 |
| 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 | 4 |
| $300,000,000 in
aggregate original principal amount may be | 5 |
| issued and sold in accordance
with the Retirement Savings Act | 6 |
| in the form of General Obligation
Retirement Savings Bonds.
| 7 |
| Of the total amount of Bonds authorized in this Act, the | 8 |
| additional
$10,000,000,000 authorized by Public Act 93-2 and | 9 |
| the $16,000,000,000 authorized by this amendatory Act of the | 10 |
| 95th 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 | 13 |
| Obligation Bond
Act is an economical and efficient method of | 14 |
| financing the long-term capital needs of
the State. This Act | 15 |
| will permit the issuance of a multi-purpose General
Obligation | 16 |
| Bond with uniform terms and features. This will not only lower
| 17 |
| the cost of registration but also reduce the overall cost of | 18 |
| issuing debt
by improving the marketability of Illinois General | 19 |
| Obligation Bonds.
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| (Source: P.A. 92-13, eff. 6-22-01; 92-596, eff. 6-28-02; | 21 |
| 92-598, eff. 6-28-02; 93-2, eff. 4-7-03; 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 | 25 |
| for the
purpose of making contributions to the designated |
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| retirement systems.
For the purposes of this Section, | 2 |
| "designated retirement systems" means
the State Employees' | 3 |
| Retirement System of Illinois;
the Teachers' Retirement System | 4 |
| of the State of Illinois;
the State Universities Retirement | 5 |
| System;
the Judges Retirement System of Illinois; and
the | 6 |
| General Assembly Retirement System.
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| The amount of $16,000,000,000 is authorized to be used for | 8 |
| the purpose of making contributions to the designated | 9 |
| retirement systems.
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| (b) The Pension Contribution Fund is created as a special | 11 |
| fund in the
State Treasury.
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| The proceeds of the additional $10,000,000,000 of Bonds | 13 |
| authorized by this
amendatory Act of the 93rd General Assembly, | 14 |
| less the amounts authorized in the
Bond Sale Order to be | 15 |
| deposited directly into the capitalized interest account
of the | 16 |
| General Obligation Bond Retirement and Interest Fund or | 17 |
| otherwise
directly paid out for bond sale expenses under | 18 |
| Section 8, shall be deposited
into the Pension Contribution | 19 |
| Fund and used as provided in this Section.
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| The proceeds of the additional $16,000,000,000 of bonds | 21 |
| authorized by this amendatory Act of the 95th General Assembly, | 22 |
| less the amounts directly paid out for bond sale expenses under | 23 |
| Section 8, shall be deposited into the Pension Contribution | 24 |
| Fund and used as provided in this Section.
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| (c) Of the amount of Bond proceeds from the bond sale | 26 |
| authorized by Public Act 93-2 first deposited into the Pension
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| Contribution Fund, there shall be reserved for transfers under | 2 |
| this subsection
the sum of $300,000,000, representing the | 3 |
| required State contributions to the
designated retirement | 4 |
| systems for the last quarter of State fiscal year 2003,
plus | 5 |
| the sum of $1,860,000,000, representing the required State | 6 |
| contributions
to the designated retirement systems for State | 7 |
| fiscal year 2004.
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| Upon the deposit of sufficient moneys from the bond sale | 9 |
| authorized by Public Act 93-2 into the Pension Contribution
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| Fund, the Comptroller and Treasurer shall immediately transfer | 11 |
| the sum of
$300,000,000 from the Pension Contribution Fund to | 12 |
| the General Revenue Fund.
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| Whenever any payment of required State contributions for | 14 |
| State fiscal year
2004 is made to one of the designated | 15 |
| retirement systems, the Comptroller and
Treasurer shall, as | 16 |
| soon as practicable, transfer from the Pension Contribution
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| Fund to the General Revenue Fund an amount equal to the amount | 18 |
| of that payment
to the designated retirement system.
Beginning | 19 |
| on the effective date of this amendatory Act of the 93rd
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| General Assembly, the transfers from the Pension Contribution | 21 |
| Fund to
the General Revenue Fund shall be suspended until June | 22 |
| 30, 2004, and
the remaining balance in the Pension Contribution | 23 |
| Fund shall be
transferred directly to the designated retirement | 24 |
| systems as provided
in Section 6z-61 of the State Finance Act. | 25 |
| On and after July 1, 2004, in the
event that
any amount is on | 26 |
| deposit in the Pension Contribution Fund from time to
time, the |
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| Comptroller and
Treasurer shall continue to make such transfers | 2 |
| based on fiscal year 2005
payments until the entire amount on | 3 |
| deposit has been
transferred.
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| (d) All amounts deposited into the Pension Contribution | 5 |
| Fund, other
than the amounts reserved for the transfers under | 6 |
| subsection (c), shall be
appropriated to the designated | 7 |
| retirement systems to reduce their actuarial
reserve | 8 |
| deficiencies. The amount of the appropriation to each | 9 |
| designated
retirement system shall constitute a portion of the | 10 |
| total appropriation under
this subsection that is the same as | 11 |
| that retirement system's portion of the
total actuarial reserve | 12 |
| 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 | 14 |
| of the State Finance Act.
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| Within 15 days after any Bond proceeds in excess of the | 16 |
| amounts initially
reserved under subsection (c) from the bond | 17 |
| sale authorized by Public Act 93-2 are deposited into the | 18 |
| Pension Contribution
Fund, the
Governor's Office of Management | 19 |
| and Budget shall (i) allocate those proceeds among the
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| designated retirement systems in proportion to their | 21 |
| respective actuarial
reserve deficiencies, as most recently | 22 |
| determined under Section 8.12 of the
State Finance Act, and | 23 |
| (ii) certify those allocations to the designated
retirement | 24 |
| systems and the Comptroller.
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| Upon receiving certification of an allocation under this | 26 |
| subsection, a
designated retirement system shall submit to the |
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| Comptroller a voucher for
the amount of its allocation. The | 2 |
| voucher shall be paid out of the amount
appropriated to that | 3 |
| 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 - | 8 |
| Requirements for
Bonds. | 9 |
| (a) Except as otherwise provided in this subsection, Bonds | 10 |
| shall be issued and sold from time to time, in one or
more | 11 |
| series, in such amounts and at such prices as may be directed | 12 |
| 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 | 14 |
| such form (either coupon, registered or book entry), in
such | 15 |
| denominations, payable within 25 years from their date, subject | 16 |
| to such
terms of redemption with or without premium, bear | 17 |
| interest payable at
such times and at such fixed or variable | 18 |
| rate or rates, and be dated
as shall be fixed and determined by | 19 |
| 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 | 21 |
| Bonds, which order shall be approved by the Governor
and is | 22 |
| herein called a "Bond Sale Order"; provided however, that | 23 |
| interest
payable at fixed or variable rates shall not exceed | 24 |
| that permitted in the
Bond Authorization Act, as now or | 25 |
| hereafter amended. Bonds shall be
payable at such place or |
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| places, within or without the State of Illinois, and
may be | 2 |
| made registrable as to either principal or as to both principal | 3 |
| and
interest, as shall be specified in the Bond Sale Order. | 4 |
| Bonds authorized by this amendatory Act of the 95th General | 5 |
| Assembly may be denominated in and payable in a currency other | 6 |
| than United States dollars and may be payable at locations | 7 |
| outside of the United States. Bonds may be callable
or subject | 8 |
| to purchase and retirement or tender and remarketing as fixed
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| and determined in the Bond Sale Order. Bonds must be issued | 10 |
| with principal or mandatory redemption amounts in equal | 11 |
| amounts, with the first maturity issued occurring within the | 12 |
| fiscal year in which the Bonds are issued or within the next | 13 |
| succeeding fiscal year, with Bonds issued maturing or subject | 14 |
| to mandatory redemption each fiscal year thereafter up to 25 | 15 |
| years. However, the term of the bonds authorized by this | 16 |
| amendatory Act of the 95th General Assembly may not exceed 30 | 17 |
| years, with payment of principal beginning in the first State | 18 |
| fiscal year following the fiscal year of issuance and including | 19 |
| periodic increases in principal payments thereafter, and the | 20 |
| manner of sale shall be as provided in the Bond Sale Order.
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| In the case of any series of Bonds bearing interest at a | 22 |
| variable interest
rate ("Variable Rate Bonds"), in lieu of | 23 |
| determining the rate or rates at which
such series of Variable | 24 |
| Rate Bonds shall bear interest and the price or prices
at which | 25 |
| such Variable Rate Bonds shall be initially sold or remarketed | 26 |
| (in the
event of purchase and subsequent resale), the Bond Sale |
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| Order may provide that
such interest rates and prices may vary | 2 |
| from time to time depending on criteria
established in such | 3 |
| Bond Sale Order, which criteria may include, without
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| limitation, references to indices or variations in interest | 5 |
| rates as may, in
the judgment of a remarketing agent, be | 6 |
| necessary to cause Variable Rate Bonds
of such series to be | 7 |
| remarketable from time to time at a price equal to their
| 8 |
| principal amount, and may provide for appointment of a bank, | 9 |
| trust company,
investment bank, or other financial institution | 10 |
| to serve as remarketing agent
in that connection.
The Bond Sale | 11 |
| Order may provide that alternative interest rates or provisions
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| for establishing alternative interest rates, different | 13 |
| security or claim
priorities, or different call or amortization | 14 |
| provisions will apply during
such times as Variable Rate Bonds | 15 |
| of any series are held by a person providing
credit or | 16 |
| liquidity enhancement arrangements for such Bonds as | 17 |
| authorized in
subsection (b) of this Section.
The Bond Sale | 18 |
| 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 | 20 |
| rate process
and may provide for appointment of one or more | 21 |
| financial institutions to serve
as auction agents and | 22 |
| broker-dealers in connection with the establishment of
such | 23 |
| 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, | 25 |
| the State may
enter into arrangements to provide additional | 26 |
| security and liquidity for such
Bonds, including, without |
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| limitation, bond or interest rate insurance or
letters of | 2 |
| credit, lines of credit, bond purchase contracts, or other
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| arrangements whereby funds are made available to retire or | 4 |
| purchase Bonds,
thereby assuring the ability of owners of the | 5 |
| Bonds to sell or redeem their
Bonds. The State may enter into | 6 |
| contracts and may agree to pay fees to persons
providing such | 7 |
| arrangements, but only under circumstances where the Director | 8 |
| of
the
Governor's Office of Management and Budget certifies | 9 |
| that he or she reasonably expects the total
interest paid or to | 10 |
| be paid on the Bonds, together with the fees for the
| 11 |
| arrangements (being treated as if interest), would not, taken | 12 |
| together, cause
the Bonds to bear interest, calculated to their | 13 |
| stated maturity, at a rate in
excess of the rate that the Bonds | 14 |
| would bear in the absence of such
arrangements.
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| The State may, with respect to Bonds issued or anticipated | 16 |
| to be issued,
participate in and enter into arrangements with | 17 |
| respect to interest rate
protection or exchange agreements, | 18 |
| guarantees, or financial futures contracts
for the purpose of | 19 |
| limiting, reducing, or managing interest rate exposure.
With | 20 |
| respect to bonds authorized by this amendatory Act of the 95th | 21 |
| General Assembly, such arrangements may include agreements or | 22 |
| contracts entered into for purpose of limiting, reducing, or | 23 |
| managing exposure to changes in foreign currency exchange | 24 |
| rates. The authority granted under this paragraph, however, | 25 |
| shall not increase the principal amount of Bonds authorized to | 26 |
| be issued by law. The arrangements may be executed and |
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| delivered by the Director
of the
Governor's Office of | 2 |
| Management and Budget on behalf of the State. Net payments for | 3 |
| such
arrangements shall constitute interest on the Bonds and | 4 |
| shall be paid from the
General Obligation Bond Retirement and | 5 |
| Interest Fund. The Director of the
Governor's Office of | 6 |
| Management and Budget shall at least annually certify to the | 7 |
| Governor and
the
State Comptroller his or her estimate of the | 8 |
| amounts of such net payments to
be included in the calculation | 9 |
| of interest required to be paid by the State.
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| (c) Prior to the issuance of any Variable Rate Bonds | 11 |
| pursuant to
subsection (a), the Director of the
Governor's | 12 |
| Office of Management and Budget shall adopt an
interest rate | 13 |
| 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 | 15 |
| 20%. This policy
shall remain in effect while any Bonds are | 16 |
| outstanding and the issuance of
Bonds
shall be subject to the | 17 |
| terms of such policy. The terms of this policy may be
amended | 18 |
| from time to time by the Director of the
Governor's Office of | 19 |
| Management and Budget but in no
event shall any amendment cause | 20 |
| the permitted level of the State's variable
rate exposure with | 21 |
| 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, | 23 |
| eff. 3-5-04; 93-839, eff. 7-30-04.)
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| Section 10. The Illinois Pension Code is amended by | 25 |
| changing Sections 2-124, 2-134, 14-131, 14-135.08, 15-155, |
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| 15-156, 15-157, 15-165, 16-158, 18-131, and 18-140 as follows:
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| (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
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| Sec. 2-124. Contributions by State.
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| (a) The State shall make contributions to the System by
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| appropriations of amounts which, together with the | 6 |
| contributions of
participants, interest earned on investments, | 7 |
| and other income
will meet the cost of maintaining and | 8 |
| administering the System on a 90%
funded basis in accordance | 9 |
| with actuarial recommendations.
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| (b) The Board shall determine the amount of State
| 11 |
| contributions required for each fiscal year on the basis of the
| 12 |
| actuarial tables and other assumptions adopted by the Board and | 13 |
| the
prescribed rate of interest, using the formula in | 14 |
| subsection (c).
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| (c) The
For State fiscal years 2011 through 2045, the
| 16 |
| minimum contribution
to the System to be made by the State for | 17 |
| each fiscal year shall be an amount
determined by the System to | 18 |
| be sufficient to bring the total assets of the
System up to 90% | 19 |
| of the total actuarial liabilities of the System by the end of
| 20 |
| State fiscal year 2040 as
2045. In making these determinations, | 21 |
| the required State
contribution shall be calculated each year | 22 |
| as a level percentage of payroll
over the years remaining to | 23 |
| and including fiscal year 2045 and shall be
determined under | 24 |
| the projected unit credit actuarial cost method.
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| For State fiscal years 1996 through 2005, the State |
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| contribution to
the System, as a percentage of the applicable | 2 |
| employee payroll, shall be
increased in equal annual increments | 3 |
| so that by State fiscal year 2011, the
State is contributing at | 4 |
| the rate required under this Section.
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| Notwithstanding any other provision of this Article, the | 6 |
| total required State
contribution for State fiscal year 2006 is | 7 |
| $4,157,000.
| 8 |
| Notwithstanding any other provision of this Article, the | 9 |
| total required State
contribution for State fiscal year 2007 is | 10 |
| $5,220,300.
| 11 |
| Notwithstanding any other provision of this Article, the | 12 |
| total required State
contribution for State fiscal year 2008 is | 13 |
| $5,220,300, minus the sum of (i) the System's proportionate | 14 |
| share of principal repayment due in State fiscal year 2008 for | 15 |
| the bonds authorized by Public Act 93-2 and (ii) the System's | 16 |
| proportionate share of principal and interest, if any, due in | 17 |
| State fiscal year 2008 for the bonds authorized by this | 18 |
| amendatory Act of the 95th General Assembly.
| 19 |
| For each of State fiscal years 2009
2008 through 2040
2010 , | 20 |
| the State contribution to
the System , as a percentage of the | 21 |
| applicable employee payroll, shall be
increased in equal annual | 22 |
| amounts
increments from the required State contribution for the | 23 |
| preceding State fiscal year 2007 , so that by State fiscal year | 24 |
| 2040
2011 , the
State is contributing at the rate otherwise | 25 |
| required under this Section.
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| Beginning in State fiscal year 2041
2046 , the minimum State |
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| contribution for
each fiscal year shall be the amount needed to | 2 |
| maintain the total assets of
the System at 90% of the total | 3 |
| actuarial liabilities of the System.
| 4 |
| Amounts received by the System pursuant to Section 25 of | 5 |
| the Budget Stabilization Act in any fiscal year do not reduce | 6 |
| and do not constitute payment of any portion of the minimum | 7 |
| State contribution required under this Article in that fiscal | 8 |
| year. Such amounts shall not reduce, and shall not be included | 9 |
| in the calculation of, the required State contributions under | 10 |
| this Article in any future year until the System has reached a | 11 |
| funding ratio of at least 90%. A reference in this Article to | 12 |
| the "required State contribution" or any substantially similar | 13 |
| term does not include or apply to any amounts payable to the | 14 |
| System under Section 25 of the Budget Stabilization Act.
| 15 |
| Notwithstanding any other provision of this Section, the | 16 |
| required State
contribution for State fiscal year 2009
2005 and | 17 |
| for fiscal year 2008 and each fiscal year thereafter, as
| 18 |
| calculated under this Section and
certified under Section | 19 |
| 2-134, shall not exceed an amount equal to (i) the
amount of | 20 |
| the required State contribution that would have been calculated | 21 |
| under
this Section for that fiscal year if the System had not | 22 |
| received any payments
under subsection (d) of Section 7.2 of | 23 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 24 |
| State's total debt service payments for that fiscal
year on the | 25 |
| bonds issued for the purposes of that Section 7.2, as | 26 |
| determined
and certified by the Comptroller, that is the same |
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| as the System's portion of
the total moneys distributed under | 2 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 3 |
| Act. In determining this maximum for State fiscal years 2008 | 4 |
| through 2010, however, the amount referred to in item (i) shall | 5 |
| be increased, as a percentage of the applicable employee | 6 |
| payroll, in equal increments calculated from the sum of the | 7 |
| required State contribution for State fiscal year 2007 plus the | 8 |
| applicable portion of the State's total debt service payments | 9 |
| for fiscal year 2007 on the bonds issued for the purposes of | 10 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 11 |
| State fiscal year 2011, the
State is contributing at the rate | 12 |
| otherwise required under this Section.
| 13 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 14 |
| eff. 6-6-06.)
| 15 |
| (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| 16 |
| Sec. 2-134. To certify required State contributions and | 17 |
| submit vouchers.
| 18 |
| (a) The Board shall certify to the Governor on or before | 19 |
| December 15 of each
year the amount of the required State | 20 |
| contribution to the System for the next
fiscal year. The | 21 |
| certification shall include a copy of the actuarial
| 22 |
| recommendations upon which it is based.
| 23 |
| On or before May 1, 2004, the Board shall recalculate and | 24 |
| recertify to
the Governor the amount of the required State | 25 |
| contribution to the System for
State fiscal year 2005, taking |
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| into account the amounts appropriated to and
received by the | 2 |
| System under subsection (d) of Section 7.2 of the General
| 3 |
| Obligation Bond Act.
| 4 |
| On or before July 1, 2005, the Board shall recalculate and | 5 |
| recertify
to the Governor the amount of the required State
| 6 |
| contribution to the System for State fiscal year 2006, taking | 7 |
| into account the changes in required State contributions made | 8 |
| by this amendatory Act of the 94th General Assembly.
| 9 |
| On or before July 1, 2007, the board shall recalculate and | 10 |
| recertify to the Governor the amount of the required State | 11 |
| contribution to the System for State fiscal year 2008, taking | 12 |
| into account the changes in required contributions made by this | 13 |
| amendatory Act of the 95th General Assembly.
| 14 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 15 |
| possible after the
15th day of each month the Board shall | 16 |
| submit vouchers for payment of State
contributions to the | 17 |
| System, in a total monthly amount of one-twelfth of the
| 18 |
| required annual State contribution certified under subsection | 19 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 20 |
| General Assembly through June 30, 2004, the Board shall not
| 21 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 22 |
| of the
fiscal year 2004 certified contribution amount | 23 |
| determined
under this Section after taking into consideration | 24 |
| the transfer to the
System under subsection (d) of Section | 25 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 26 |
| the State Comptroller and Treasurer by warrants drawn
on the |
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| funds appropriated to the System for that fiscal year. If in | 2 |
| any month
the amount remaining unexpended from all other | 3 |
| appropriations to the System for
the applicable fiscal year | 4 |
| (including the appropriations to the System under
Section 8.12 | 5 |
| of the State Finance Act and Section 1 of the State Pension | 6 |
| Funds
Continuing Appropriation Act) is less than the amount | 7 |
| lawfully vouchered under
this Section, the difference shall be | 8 |
| paid from the General Revenue Fund under
the continuing | 9 |
| appropriation authority provided in Section 1.1 of the State
| 10 |
| Pension Funds Continuing Appropriation Act.
| 11 |
| (c) The full amount of any annual appropriation for the | 12 |
| System for
State fiscal year 1995 shall be transferred and made | 13 |
| available to the System
at the beginning of that fiscal year at | 14 |
| the request of the Board.
Any excess funds remaining at the end | 15 |
| of any fiscal year from appropriations
shall be retained by the | 16 |
| System as a general reserve to meet the System's
accrued | 17 |
| liabilities.
| 18 |
| (d) Notwithstanding this Act or any other law to the | 19 |
| contrary, the Board must ensure that at least 19% of the | 20 |
| proceeds received by the Board from any concession lease | 21 |
| agreement of the Illinois Lottery as well as at least 19% of | 22 |
| the proceeds from the issuance of general obligation bonds | 23 |
| under the General Obligation Bond Act authorized by this | 24 |
| amendatory Act of the 95th General Assembly are invested | 25 |
| through qualified investment advisers who are a "minority owned | 26 |
| business" or a "female owned business" as those terms are |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| defined in the Business Enterprise for Minorities, Females, and | 2 |
| Persons with Disabilities Act.
| 3 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 4 |
| eff. 6-1-05; 94-536, eff. 8-10-05; revised 8-19-05.)
| 5 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 6 |
| Sec. 14-131. Contributions by State.
| 7 |
| (a) The State shall make contributions to the System by | 8 |
| appropriations of
amounts which, together with other employer | 9 |
| contributions from trust, federal,
and other funds, employee | 10 |
| contributions, investment income, and other income,
will be | 11 |
| sufficient to meet the cost of maintaining and administering | 12 |
| the System
on a 90% funded basis in accordance with actuarial | 13 |
| recommendations.
| 14 |
| For the purposes of this Section and Section 14-135.08, | 15 |
| references to State
contributions refer only to employer | 16 |
| contributions and do not include employee
contributions that | 17 |
| are picked up or otherwise paid by the State or a
department on | 18 |
| behalf of the employee.
| 19 |
| (b) The Board shall determine the total amount of State | 20 |
| contributions
required for each fiscal year on the basis of the | 21 |
| actuarial tables and other
assumptions adopted by the Board, | 22 |
| using the formula in subsection (e).
| 23 |
| The Board shall also determine a State contribution rate | 24 |
| for each fiscal
year, expressed as a percentage of payroll, | 25 |
| based on the total required State
contribution for that fiscal |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| year (less the amount received by the System from
| 2 |
| appropriations under Section 8.12 of the State Finance Act and | 3 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 4 |
| Act, if any, for the fiscal year
ending on the June 30 | 5 |
| immediately preceding the applicable November 15
certification | 6 |
| deadline), the estimated payroll (including all forms of
| 7 |
| compensation) for personal services rendered by eligible | 8 |
| employees, and the
recommendations of the actuary.
| 9 |
| For the purposes of this Section and Section 14.1 of the | 10 |
| State Finance Act,
the term "eligible employees" includes | 11 |
| employees who participate in the System,
persons who may elect | 12 |
| to participate in the System but have not so elected,
persons | 13 |
| who are serving a qualifying period that is required for | 14 |
| participation,
and annuitants employed by a department as | 15 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 16 |
| (c) Contributions shall be made by the several departments | 17 |
| for each pay
period by warrants drawn by the State Comptroller | 18 |
| against their respective
funds or appropriations based upon | 19 |
| vouchers stating the amount to be so
contributed. These amounts | 20 |
| shall be based on the full rate certified by the
Board under | 21 |
| Section 14-135.08 for that fiscal year.
From the effective date | 22 |
| of this amendatory Act of the 93rd General
Assembly through the | 23 |
| payment of the final payroll from fiscal year 2004
| 24 |
| appropriations, the several departments shall not make | 25 |
| contributions
for the remainder of fiscal year 2004 but shall | 26 |
| instead make payments
as required under subsection (a-1) of |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| Section 14.1 of the State Finance Act.
The several departments | 2 |
| shall resume those contributions at the commencement of
fiscal | 3 |
| year 2005.
| 4 |
| (d) If an employee is paid from trust funds or federal | 5 |
| funds, the
department or other employer shall pay employer | 6 |
| contributions from those funds
to the System at the certified | 7 |
| rate, unless the terms of the trust or the
federal-State | 8 |
| agreement preclude the use of the funds for that purpose, in
| 9 |
| which case the required employer contributions shall be paid by | 10 |
| the State.
From the effective date of this amendatory
Act of | 11 |
| the 93rd General Assembly through the payment of the final
| 12 |
| payroll from fiscal year 2004 appropriations, the department or | 13 |
| other
employer shall not pay contributions for the remainder of | 14 |
| fiscal year
2004 but shall instead make payments as required | 15 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 16 |
| Act. The department or other employer shall
resume payment of
| 17 |
| contributions at the commencement of fiscal year 2005.
| 18 |
| (e) The
For State fiscal years 2011 through 2045, the
| 19 |
| minimum contribution
to the System to be made by the State for | 20 |
| each fiscal year shall be an amount
determined by the System to | 21 |
| be sufficient to bring the total assets of the
System up to 90% | 22 |
| of the total actuarial liabilities of the System by the end
of | 23 |
| State fiscal year 2040 as
2045. In making these determinations, | 24 |
| the required State
contribution shall be calculated each year | 25 |
| as a level percentage of payroll
over the years remaining to | 26 |
| and including fiscal year 2045 and shall be
determined under |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| the projected unit credit actuarial cost method.
| 2 |
| For State fiscal years 1996 through 2005, the State | 3 |
| contribution to
the System, as a percentage of the applicable | 4 |
| employee payroll, shall be
increased in equal annual increments | 5 |
| so that by State fiscal year 2011, the
State is contributing at | 6 |
| the rate required under this Section; except that
(i) for State | 7 |
| fiscal year 1998, for all purposes of this Code and any other
| 8 |
| law of this State, the certified percentage of the applicable | 9 |
| employee payroll
shall be 5.052% for employees earning eligible | 10 |
| creditable service under Section
14-110 and 6.500% for all | 11 |
| other employees, notwithstanding any contrary
certification | 12 |
| made under Section 14-135.08 before the effective date of this
| 13 |
| amendatory Act of 1997, and (ii)
in the following specified | 14 |
| State fiscal years, the State contribution to
the System shall | 15 |
| not be less than the following indicated percentages of the
| 16 |
| applicable employee payroll, even if the indicated percentage | 17 |
| will produce a
State contribution in excess of the amount | 18 |
| otherwise required under this
subsection and subsection (a):
| 19 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 20 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 21 |
| Notwithstanding any other provision of this Article, the | 22 |
| total required State
contribution to the System for State | 23 |
| fiscal year 2006 is $203,783,900.
| 24 |
| Notwithstanding any other provision of this Article, the | 25 |
| total required State
contribution to the System for State | 26 |
| fiscal year 2007 is $344,164,400.
|
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| Notwithstanding any other provision of this Article, the | 2 |
| total required State
contribution to the System for State | 3 |
| fiscal year 2008 is $344,164,400 minus the sum of (i) the | 4 |
| System's proportionate share of principal repayment due in | 5 |
| State fiscal year 2008 for the bonds authorized by Public Act | 6 |
| 93-2 and (ii) the System's proportionate share of principal and | 7 |
| interest, if any, due in State fiscal year 2008 for the bonds | 8 |
| authorized by this amendatory Act of the 95th General Assembly.
| 9 |
| For each of State fiscal years 2009
2008 through 2040
2010 , | 10 |
| the State contribution to
the System , as a percentage of the | 11 |
| applicable employee payroll, shall be
increased in equal annual | 12 |
| amounts
increments from the required State contribution for the | 13 |
| preceding State fiscal year 2007 , so that by State fiscal year | 14 |
| 2040
2011 , the
State is contributing at the rate otherwise | 15 |
| required under this Section.
| 16 |
| Beginning in State fiscal year 2041
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 in any fiscal year do not reduce | 22 |
| and do not constitute payment of any portion of the minimum | 23 |
| State contribution required under this Article in that fiscal | 24 |
| year. Such amounts shall not reduce, and shall not be included | 25 |
| in the calculation of, the required State contributions under | 26 |
| this Article in any future year until the System has reached a |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| funding ratio of at least 90%. A reference in this Article to | 2 |
| the "required State contribution" or any substantially similar | 3 |
| term does not include or apply to any amounts payable to the | 4 |
| System under Section 25 of the Budget Stabilization Act.
| 5 |
| Notwithstanding any other provision of this Section, the | 6 |
| required State
contribution for State fiscal year 2009
2005 and | 7 |
| for fiscal year 2008 and each fiscal year thereafter, as
| 8 |
| calculated under this Section and
certified under Section | 9 |
| 14-135.08, shall not exceed an amount equal to (i) the
amount | 10 |
| of the required State contribution that would have been | 11 |
| calculated under
this Section for that fiscal year if the | 12 |
| System had not received any payments
under subsection (d) of | 13 |
| Section 7.2 of the General Obligation Bond Act, minus
(ii) the | 14 |
| portion of the State's total debt service payments for that | 15 |
| fiscal
year on the bonds issued for the purposes of that | 16 |
| Section 7.2, as determined
and certified by the Comptroller, | 17 |
| that is the same as the System's portion of
the total moneys | 18 |
| distributed under subsection (d) of Section 7.2 of the General
| 19 |
| Obligation Bond Act. In determining this maximum for State | 20 |
| fiscal years 2008 through 2010, however, the amount referred to | 21 |
| in item (i) shall be increased, as a percentage of the | 22 |
| applicable employee payroll, in equal increments calculated | 23 |
| from the sum of the required State contribution for State | 24 |
| fiscal year 2007 plus the applicable portion of the State's | 25 |
| total debt service payments for fiscal year 2007 on the bonds | 26 |
| issued for the purposes of Section 7.2 of the General
|
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| Obligation Bond Act, so that, by State fiscal year 2011, the
| 2 |
| State is contributing at the rate otherwise required under this | 3 |
| Section.
| 4 |
| (f) After the submission of all payments for eligible | 5 |
| employees
from personal services line items in fiscal year 2004 | 6 |
| have been made,
the Comptroller shall provide to the System a | 7 |
| certification of the sum
of all fiscal year 2004 expenditures | 8 |
| for personal services that would
have been covered by payments | 9 |
| to the System under this Section if the
provisions of this | 10 |
| amendatory Act of the 93rd General Assembly had not been
| 11 |
| enacted. Upon
receipt of the certification, the System shall | 12 |
| determine the amount
due to the System based on the full rate | 13 |
| certified by the Board under
Section 14-135.08 for fiscal year | 14 |
| 2004 in order to meet the State's
obligation under this | 15 |
| Section. The System shall compare this amount
due to the amount | 16 |
| received by the System in fiscal year 2004 through
payments | 17 |
| under this Section and under Section 6z-61 of the State Finance | 18 |
| Act.
If the amount
due is more than the amount received, the | 19 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 20 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 21 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 22 |
| Continuing Appropriation Act. If the amount due is less than | 23 |
| the
amount received, the
difference shall be termed the "Fiscal | 24 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 25 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to | 26 |
| the Pension Contribution Fund as soon as practicable
after the |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| certification.
| 2 |
| (g) Notwithstanding this Act or any other law to the | 3 |
| contrary, the Board must ensure that at least 19% of the | 4 |
| proceeds received by the Board from any concession lease | 5 |
| agreement of the Illinois Lottery as well as at least 19% of | 6 |
| the proceeds from the issuance of general obligation bonds | 7 |
| under the General Obligation Bond Act authorized by this | 8 |
| amendatory Act of the 95th General Assembly are invested | 9 |
| through qualified investment advisers who are a "minority owned | 10 |
| business" or a "female owned business" as those terms are | 11 |
| defined in the Business Enterprise for Minorities, Females, and | 12 |
| Persons with Disabilities Act.
| 13 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 14 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
| 15 |
| (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| 16 |
| Sec. 14-135.08. To certify required State contributions. | 17 |
| (a)
To certify to the Governor and to each department, on | 18 |
| or before
November 15 of each year, the required rate for State | 19 |
| contributions to the
System for the next State fiscal year, as | 20 |
| determined under subsection (b) of
Section 14-131. The | 21 |
| certification to the Governor shall include a copy of the
| 22 |
| actuarial recommendations upon which the rate is based.
| 23 |
| (b) The certification shall include an additional amount | 24 |
| necessary to pay all principal of and interest on those general | 25 |
| obligation bonds due the next fiscal year authorized by Section |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| 7.2(a) of the General Obligation Bond Act and issued to provide | 2 |
| the proceeds deposited by the State with the System in July | 3 |
| 2003 , representing deposits other than amounts reserved under | 4 |
| Section 7.2(c) of the General Obligation Bond Act from the | 5 |
| initial $10,000,000,000 bond sale . For State fiscal year 2005, | 6 |
| the Board shall make a supplemental certification of the | 7 |
| additional amount necessary to pay all principal of and | 8 |
| interest on those general obligation bonds due in State fiscal | 9 |
| years 2004 and 2005 authorized by Section 7.2(a) of the General | 10 |
| Obligation Bond Act and issued to provide the proceeds | 11 |
| deposited by the State with the System in July 2003, | 12 |
| representing deposits other than amounts reserved under | 13 |
| Section 7.2(c) of the General Obligation Bond Act, as soon as | 14 |
| practical after the effective date of this amendatory Act of | 15 |
| the 93rd General Assembly.
| 16 |
| On or before May 1, 2004, the Board shall recalculate and | 17 |
| recertify
to the Governor and to each department the amount of | 18 |
| the required State
contribution to the System and the required | 19 |
| rates for State contributions
to the System for State fiscal | 20 |
| year 2005, taking into account the amounts
appropriated to and | 21 |
| received by the System under subsection (d) of Section
7.2 of | 22 |
| the General Obligation Bond Act.
| 23 |
| On or before July 1, 2005, the Board shall recalculate and | 24 |
| recertify
to the Governor and to each department the amount of | 25 |
| the required State
contribution to the System and the required | 26 |
| rates for State contributions
to the System for State fiscal |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| year 2006, taking into account the changes in required State | 2 |
| contributions made by this amendatory Act of the 94th General | 3 |
| Assembly.
| 4 |
| On or before July 1, 2007, the Board shall recalculate and | 5 |
| recertify to the Governor and to each Department the amount of | 6 |
| the required State contribution to the System and the required | 7 |
| rates for State contribution to the System for State fiscal | 8 |
| year 2008, taking into account the changes in required | 9 |
| contributions made by this amendatory Act of the 95th General | 10 |
| Assembly.
| 11 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4, | 12 |
| eff. 6-1-05.)
| 13 |
| (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 14 |
| Sec. 15-155. Employer contributions.
| 15 |
| (a) The State of Illinois shall make contributions by | 16 |
| appropriations of
amounts which, together with the other | 17 |
| employer contributions from trust,
federal, and other funds, | 18 |
| employee contributions, income from investments,
and other | 19 |
| income of this System, will be sufficient to meet the cost of
| 20 |
| maintaining and administering the System on a 90% funded basis | 21 |
| in accordance
with actuarial recommendations.
| 22 |
| The Board shall determine the amount of State contributions | 23 |
| required for
each fiscal year on the basis of the actuarial | 24 |
| tables and other assumptions
adopted by the Board and the | 25 |
| recommendations of the actuary, using the formula
in subsection |
|
|
|
09500HB3755ham001 |
- 27 - |
LRB095 07746 AMC 37924 a |
|
| 1 |
| (a-1).
| 2 |
| (a-1) The
For State fiscal years 2011 through 2045, the
| 3 |
| minimum contribution
to the System to be made by the State for | 4 |
| each fiscal year shall be an amount
determined by the System to | 5 |
| be sufficient to bring the total assets of the
System up to 90% | 6 |
| of the total actuarial liabilities of the System by the end of
| 7 |
| State fiscal year 2040 as
2045. In making these determinations, | 8 |
| the required State
contribution shall be calculated each year | 9 |
| as a level percentage of payroll
over the years remaining to | 10 |
| and including fiscal year 2045 and shall be
determined under | 11 |
| the projected unit credit actuarial cost method.
| 12 |
| For State fiscal years 1996 through 2005, the State | 13 |
| contribution to
the System, as a percentage of the applicable | 14 |
| employee payroll, shall be
increased in equal annual increments | 15 |
| so that by State fiscal year 2011, the
State is contributing at | 16 |
| the rate required under this Section.
| 17 |
| Notwithstanding any other provision of this Article, the | 18 |
| total required State
contribution for State fiscal year 2006 is | 19 |
| $166,641,900.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2007 is | 22 |
| $252,064,100.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State
contribution for State fiscal year 2008 is | 25 |
| $252,064,100 minus the sum of (i) the System's proportionate | 26 |
| share of principal repayment due in State fiscal year 2008 for |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| the bonds authorized by Public Act 93-2 and (ii) the System's | 2 |
| proportionate share of principal and interest, if any, due in | 3 |
| State fiscal year 2008 for the bonds authorized by this | 4 |
| amendatory Act of the 95th General Assembly.
| 5 |
| For each of State fiscal years 2009
2008 through 2040
2010 , | 6 |
| the State contribution to
the System , as a percentage of the | 7 |
| applicable employee payroll, shall be
increased in equal annual | 8 |
| amounts
increments from the required State contribution for the | 9 |
| preceding State fiscal year 2007 , so that by State fiscal year | 10 |
| 2040
2011 , the
State is contributing at the rate otherwise | 11 |
| required under this Section.
| 12 |
| Beginning in State fiscal year 2041
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 in any fiscal year do not reduce | 18 |
| and do not constitute payment of any portion of the minimum | 19 |
| State contribution required under this Article in that fiscal | 20 |
| year. Such amounts shall not reduce, and shall not be included | 21 |
| in the calculation of, the required State contributions under | 22 |
| this Article in any future year until the System has reached a | 23 |
| funding ratio of at least 90%. A reference in this Article to | 24 |
| the "required State contribution" or any substantially similar | 25 |
| term does not include or apply to any amounts payable to the | 26 |
| System under Section 25 of the Budget Stabilization Act. |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| Notwithstanding any other provision of this Section, the | 2 |
| required State
contribution for State fiscal year 2009
2005 and | 3 |
| for fiscal year 2008 and each fiscal year thereafter, as
| 4 |
| calculated under this Section and
certified under Section | 5 |
| 15-165, shall not exceed an amount equal to (i) the
amount of | 6 |
| the required State contribution that would have been calculated | 7 |
| under
this Section for that fiscal year if the System had not | 8 |
| received any payments
under subsection (d) of Section 7.2 of | 9 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 10 |
| State's total debt service payments for that fiscal
year on the | 11 |
| bonds issued for the purposes of that Section 7.2, as | 12 |
| determined
and certified by the Comptroller, that is the same | 13 |
| as the System's portion of
the total moneys distributed under | 14 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 15 |
| Act. In determining this maximum for State fiscal years 2008 | 16 |
| through 2010, however, the amount referred to in item (i) shall | 17 |
| be increased, as a percentage of the applicable employee | 18 |
| payroll, in equal increments calculated from the sum of the | 19 |
| required State contribution for State fiscal year 2007 plus the | 20 |
| applicable portion of the State's total debt service payments | 21 |
| for fiscal year 2007 on the bonds issued for the purposes of | 22 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 23 |
| State fiscal year 2011, the
State is contributing at the rate | 24 |
| otherwise required under this Section.
| 25 |
| (b) If an employee is paid from trust or federal funds, the | 26 |
| employer
shall pay to the Board contributions from those funds |
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| which are
sufficient to cover the accruing normal costs on | 2 |
| behalf of the employee.
However, universities having employees | 3 |
| who are compensated out of local
auxiliary funds, income funds, | 4 |
| or service enterprise funds are not required
to pay such | 5 |
| contributions on behalf of those employees. The local auxiliary
| 6 |
| funds, income funds, and service enterprise funds of | 7 |
| universities shall not be
considered trust funds for the | 8 |
| purpose of this Article, but funds of alumni
associations, | 9 |
| foundations, and athletic associations which are affiliated | 10 |
| with
the universities included as employers under this Article | 11 |
| and other employers
which do not receive State appropriations | 12 |
| are considered to be trust funds for
the purpose of this | 13 |
| Article.
| 14 |
| (b-1) The City of Urbana and the City of Champaign shall | 15 |
| each make
employer contributions to this System for their | 16 |
| respective firefighter
employees who participate in this | 17 |
| System pursuant to subsection (h) of Section
15-107. The rate | 18 |
| of contributions to be made by those municipalities shall
be | 19 |
| determined annually by the Board on the basis of the actuarial | 20 |
| assumptions
adopted by the Board and the recommendations of the | 21 |
| actuary, and shall be
expressed as a percentage of salary for | 22 |
| each such employee. The Board shall
certify the rate to the | 23 |
| affected municipalities as soon as may be practical.
The | 24 |
| employer contributions required under this subsection shall be | 25 |
| remitted by
the municipality to the System at the same time and | 26 |
| in the same manner as
employee contributions.
|
|
|
|
09500HB3755ham001 |
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LRB095 07746 AMC 37924 a |
|
| 1 |
| (c) Through State fiscal year 1995: The total employer | 2 |
| contribution shall
be apportioned among the various funds of | 3 |
| the State and other employers,
whether trust, federal, or other | 4 |
| funds, in accordance with actuarial procedures
approved by the | 5 |
| Board. State of Illinois contributions for employers receiving
| 6 |
| State appropriations for personal services shall be payable | 7 |
| from appropriations
made to the employers or to the System. The | 8 |
| contributions for Class I
community colleges covering earnings | 9 |
| other than those paid from trust and
federal funds, shall be | 10 |
| payable solely from appropriations to the Illinois
Community | 11 |
| College Board or the System for employer contributions.
| 12 |
| (d) Beginning in State fiscal year 1996, the required State | 13 |
| contributions
to the System shall be appropriated directly to | 14 |
| the System and shall be payable
through vouchers issued in | 15 |
| accordance with subsection (c) of Section 15-165, except as | 16 |
| provided in subsection (g).
| 17 |
| (e) The State Comptroller shall draw warrants payable to | 18 |
| the System upon
proper certification by the System or by the | 19 |
| employer in accordance with the
appropriation laws and this | 20 |
| Code.
| 21 |
| (f) Normal costs under this Section means liability for
| 22 |
| pensions and other benefits which accrues to the System because | 23 |
| of the
credits earned for service rendered by the participants | 24 |
| during the
fiscal year and expenses of administering the | 25 |
| System, but shall not
include the principal of or any | 26 |
| redemption premium or interest on any bonds
issued by the Board |
|
|
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| or any expenses incurred or deposits required in
connection | 2 |
| therewith.
| 3 |
| (g) If the amount of a participant's earnings for any | 4 |
| academic year used to determine the final rate of earnings, | 5 |
| determined on a full-time equivalent basis, exceeds the amount | 6 |
| of his or her earnings with the same employer for the previous | 7 |
| academic year, determined on a full-time equivalent basis, by | 8 |
| more than 6%, the participant's employer shall pay to the | 9 |
| System, in addition to all other payments required under this | 10 |
| Section and in accordance with guidelines established by the | 11 |
| System, the present value of the increase in benefits resulting | 12 |
| from the portion of the increase in earnings that is in excess | 13 |
| of 6%. This present value shall be computed by the System on | 14 |
| the basis of the actuarial assumptions and tables used in the | 15 |
| most recent actuarial valuation of the System that is available | 16 |
| at the time of the computation. The System may require the | 17 |
| employer to provide any pertinent information or | 18 |
| documentation. | 19 |
| Whenever it determines that a payment is or may be required | 20 |
| under this subsection (g), the System shall calculate the | 21 |
| amount of the payment and bill the employer for that amount. | 22 |
| The bill shall specify the calculations used to determine the | 23 |
| amount due. If the employer disputes the amount of the bill, it | 24 |
| may, within 30 days after receipt of the bill, apply to the | 25 |
| System in writing for a recalculation. The application must | 26 |
| specify in detail the grounds of the dispute and, if the |
|
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| employer asserts that the calculation is subject to subsection | 2 |
| (h) or (i) of this Section, must include an affidavit setting | 3 |
| forth and attesting to all facts within the employer's | 4 |
| knowledge that are pertinent to the applicability of subsection | 5 |
| (h) or (i). Upon receiving a timely application for | 6 |
| recalculation, the System shall review the application and, if | 7 |
| appropriate, recalculate the amount due.
| 8 |
| The employer contributions required under this subsection | 9 |
| (f) may be paid in the form of a lump sum within 90 days after | 10 |
| receipt of the bill. If the employer contributions are not paid | 11 |
| within 90 days after receipt of the bill, then interest will be | 12 |
| charged at a rate equal to the System's annual actuarially | 13 |
| assumed rate of return on investment compounded annually from | 14 |
| the 91st day after receipt of the bill. Payments must be | 15 |
| concluded within 3 years after the employer's receipt of the | 16 |
| bill. | 17 |
| (h) This subsection (h) applies only to payments made or | 18 |
| salary increases given on or after June 1, 2005 but before July | 19 |
| 1, 2011. The changes made by Public Act 94-1057
this amendatory | 20 |
| Act of the 94th General Assembly shall not require the System | 21 |
| to refund any payments received before July 31, 2006 ( the | 22 |
| effective date of Public Act 94-1057)
this amendatory Act . | 23 |
| When assessing payment for any amount due under subsection | 24 |
| (g), the System shall exclude earnings increases paid to | 25 |
| participants under contracts or collective bargaining | 26 |
| agreements entered into, amended, or renewed before June 1, |
|
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| 2005.
| 2 |
| When assessing payment for any amount due under subsection | 3 |
| (g), the System shall exclude earnings increases paid to a | 4 |
| participant at a time when the participant is 10 or more years | 5 |
| from retirement eligibility under Section 15-135.
| 6 |
| When assessing payment for any amount due under subsection | 7 |
| (g), the System shall exclude earnings increases resulting from | 8 |
| overload work, including a contract for summer teaching, or | 9 |
| overtime when the employer has certified to the System, and the | 10 |
| System has approved the certification, that: (i) in the case of | 11 |
| overloads (A) the overload work is for the sole purpose of | 12 |
| academic instruction in excess of the standard number of | 13 |
| instruction hours for a full-time employee occurring during the | 14 |
| academic year that the overload is paid and (B) the earnings | 15 |
| increases are equal to or less than the rate of pay for | 16 |
| academic instruction computed using the participant's current | 17 |
| salary rate and work schedule; and (ii) in the case of | 18 |
| overtime, the overtime was necessary for the educational | 19 |
| mission. | 20 |
| When assessing payment for any amount due under subsection | 21 |
| (g), the System shall exclude any earnings increase resulting | 22 |
| from (i) a promotion for which the employee moves from one | 23 |
| classification to a higher classification under the State | 24 |
| Universities Civil Service System, (ii) a promotion in academic | 25 |
| rank for a tenured or tenure-track faculty position, or (iii) a | 26 |
| promotion that the Illinois Community College Board has |
|
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| recommended in accordance with subsection (k) of this Section. | 2 |
| These earnings increases shall be excluded only if the | 3 |
| promotion is to a position that has existed and been filled by | 4 |
| a member for no less than one complete academic year and the | 5 |
| earnings increase as a result of the promotion is an increase | 6 |
| that results in an amount no greater than the average salary | 7 |
| paid for other similar positions. | 8 |
| (i) When assessing payment for any amount due under | 9 |
| subsection (g), the System shall exclude any salary increase | 10 |
| described in subsection (h) of this Section given on or after | 11 |
| July 1, 2011 but before July 1, 2014 under a contract or | 12 |
| collective bargaining agreement entered into, amended, or | 13 |
| renewed on or after June 1, 2005 but before July 1, 2011. | 14 |
| Notwithstanding any other provision of this Section, any | 15 |
| payments made or salary increases given after June 30, 2014 | 16 |
| shall be used in assessing payment for any amount due under | 17 |
| subsection (g) of this Section.
| 18 |
| (j) The System shall prepare a report and file copies of | 19 |
| the report with the Governor and the General Assembly by | 20 |
| January 1, 2007 that contains all of the following information: | 21 |
| (1) The number of recalculations required by the | 22 |
| changes made to this Section by Public Act 94-1057
this | 23 |
| amendatory Act of the 94th General Assembly for each | 24 |
| employer. | 25 |
| (2) The dollar amount by which each employer's | 26 |
| contribution to the System was changed due to |
|
|
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| recalculations required by Public Act 94-1057
this | 2 |
| amendatory Act of the 94th General Assembly . | 3 |
| (3) The total amount the System received from each | 4 |
| employer as a result of the changes made to this Section by | 5 |
| Public Act 94-4. | 6 |
| (4) The increase in the required State contribution | 7 |
| resulting from the changes made to this Section by Public | 8 |
| Act 94-1057
this amendatory Act of the 94th General | 9 |
| Assembly . | 10 |
| (k) The Illinois Community College Board shall adopt rules | 11 |
| for recommending lists of promotional positions submitted to | 12 |
| the Board by community colleges and for reviewing the | 13 |
| promotional lists on an annual basis. When recommending | 14 |
| promotional lists, the Board shall consider the similarity of | 15 |
| the positions submitted to those positions recognized for State | 16 |
| universities by the State Universities Civil Service System. | 17 |
| The Illinois Community College Board shall file a copy of its | 18 |
| findings with the System. The System shall consider the | 19 |
| findings of the Illinois Community College Board when making | 20 |
| determinations under this Section. The System shall not exclude | 21 |
| any earnings increases resulting from a promotion when the | 22 |
| promotion was not submitted by a community college. Nothing in | 23 |
| this subsection (k) shall require any community college to | 24 |
| submit any information to the Community College Board.
| 25 |
| (l) Notwithstanding this Act or any other law to the | 26 |
| contrary, the Board must ensure that at least 19% of the |
|
|
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| proceeds received by the Board from any concession lease | 2 |
| agreement of the Illinois Lottery as well as at least 19% of | 3 |
| the proceeds from the issuance of general obligation bonds | 4 |
| under the General Obligation Bond Act authorized by this | 5 |
| amendatory Act of the 95th General Assembly are invested | 6 |
| through qualified investment advisers who are a "minority owned | 7 |
| business" or a "female owned business" as those terms are | 8 |
| defined in the Business Enterprise for Minorities, Females, and | 9 |
| Persons with Disabilities Act.
| 10 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 11 |
| eff. 6-6-06; 94-1057, eff. 7-31-06; revised 8-3-06.)
| 12 |
| (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 13 |
| Sec. 15-165. To certify amounts and submit vouchers.
| 14 |
| (a) The Board shall certify to the Governor on or before | 15 |
| November 15 of each
year the appropriation required from State | 16 |
| funds for the purposes of this
System for the following fiscal | 17 |
| year. The certification shall include a copy
of the actuarial | 18 |
| recommendations upon which it is based.
| 19 |
| On or before May 1, 2004, the Board shall recalculate and | 20 |
| recertify to
the Governor the amount of the required State | 21 |
| contribution to the System for
State fiscal year 2005, taking | 22 |
| into account the amounts appropriated to and
received by the | 23 |
| System under subsection (d) of Section 7.2 of the General
| 24 |
| Obligation Bond Act.
| 25 |
| On or before July 1, 2005, the Board shall recalculate and |
|
|
|
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| recertify
to the Governor the amount of the required State
| 2 |
| contribution to the System for State fiscal year 2006, taking | 3 |
| into account the changes in required State contributions made | 4 |
| by this amendatory Act of the 94th General Assembly.
| 5 |
| On or before July 1, 2007, the board shall recalculate and | 6 |
| recertify to the Governor the amount of the required State | 7 |
| contribution to the System for State fiscal year 2008, taking | 8 |
| into account the changes in required contributions made by this | 9 |
| amendatory Act of the 95th General Assembly.
| 10 |
| (b) The Board shall certify to the State Comptroller or | 11 |
| employer, as the
case may be, from time to time, by its | 12 |
| president and secretary, with its seal
attached, the amounts | 13 |
| payable to the System from the various funds.
| 14 |
| (c) Beginning in State fiscal year 1996, on or as soon as | 15 |
| possible after the
15th day of each month the Board shall | 16 |
| submit vouchers for payment of State
contributions to the | 17 |
| System, in a total monthly amount of one-twelfth of the
| 18 |
| required annual State contribution certified under subsection | 19 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 20 |
| General Assembly through June 30, 2004, the Board shall not
| 21 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 22 |
| of the
fiscal year 2004 certified contribution amount | 23 |
| determined
under this Section after taking into consideration | 24 |
| the transfer to the
System under subsection (b) of Section | 25 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 26 |
| the State Comptroller and Treasurer by warrants drawn
on the |
|
|
|
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| funds appropriated to the System for that fiscal year.
| 2 |
| If in any month the amount remaining unexpended from all | 3 |
| other
appropriations to the System for the applicable fiscal | 4 |
| year (including the
appropriations to the System under Section | 5 |
| 8.12 of the State Finance Act and
Section 1 of the State | 6 |
| Pension Funds Continuing Appropriation Act) is less than
the | 7 |
| amount lawfully vouchered under this Section, the difference | 8 |
| shall be paid
from the General Revenue Fund under the | 9 |
| continuing appropriation authority
provided in Section 1.1 of | 10 |
| the State Pension Funds Continuing Appropriation
Act.
| 11 |
| (d) So long as the payments received are the full amount | 12 |
| lawfully
vouchered under this Section, payments received by the | 13 |
| System under this
Section shall be applied first toward the | 14 |
| employer contribution to the
self-managed plan established | 15 |
| under Section 15-158.2. Payments shall be
applied second toward | 16 |
| the employer's portion of the normal costs of the System,
as | 17 |
| defined in subsection (f) of Section 15-155. The balance shall | 18 |
| be applied
toward the unfunded actuarial liabilities of the | 19 |
| System.
| 20 |
| (e) In the event that the System does not receive, as a | 21 |
| result of
legislative enactment or otherwise, payments | 22 |
| sufficient to
fully fund the employer contribution to the | 23 |
| self-managed plan
established under Section 15-158.2 and to | 24 |
| fully fund that portion of the
employer's portion of the normal | 25 |
| costs of the System, as calculated in
accordance with Section | 26 |
| 15-155(a-1), then any payments received shall be
applied |
|
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| proportionately to the optional retirement program established | 2 |
| under
Section 15-158.2 and to the employer's portion of the | 3 |
| normal costs of the
System, as calculated in accordance with | 4 |
| Section 15-155(a-1).
| 5 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 6 |
| eff. 6-1-05.)
| 7 |
| (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 8 |
| Sec. 16-158. Contributions by State and other employing | 9 |
| units.
| 10 |
| (a) The State shall make contributions to the System by | 11 |
| means of
appropriations from the Common School Fund and other | 12 |
| State funds of amounts
which, together with other employer | 13 |
| contributions, employee contributions,
investment income, and | 14 |
| other income, will be sufficient to meet the cost of
| 15 |
| maintaining and administering the System on a 90% funded basis | 16 |
| in accordance
with actuarial recommendations.
| 17 |
| The Board shall determine the amount of State contributions | 18 |
| required for
each fiscal year on the basis of the actuarial | 19 |
| tables and other assumptions
adopted by the Board and the | 20 |
| recommendations of the actuary, using the formula
in subsection | 21 |
| (b-3).
| 22 |
| (a-1) Annually, on or before November 15, the Board shall | 23 |
| certify to the
Governor the amount of the required State | 24 |
| contribution for the coming fiscal
year. The certification | 25 |
| shall include a copy of the actuarial recommendations
upon |
|
|
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| 1 |
| which it is based.
| 2 |
| On or before May 1, 2004, the Board shall recalculate and | 3 |
| recertify to
the Governor the amount of the required State | 4 |
| contribution to the System for
State fiscal year 2005, taking | 5 |
| into account the amounts appropriated to and
received by the | 6 |
| System under subsection (d) of Section 7.2 of the General
| 7 |
| Obligation Bond Act.
| 8 |
| On or before July 1, 2005, the Board shall recalculate and | 9 |
| recertify
to the Governor the amount of the required State
| 10 |
| contribution to the System for State fiscal year 2006, taking | 11 |
| into account the changes in required State contributions made | 12 |
| by this amendatory Act of the 94th General Assembly.
| 13 |
| On or before July 1, 2007, the board shall recalculate and | 14 |
| recertify to the Governor the amount of the required State | 15 |
| contribution to the System for State fiscal year 2008, taking | 16 |
| into account the changes in required contributions made by this | 17 |
| amendatory Act of the 95th General Assembly.
| 18 |
| (b) Through State fiscal year 1995, the State contributions | 19 |
| shall be
paid to the System in accordance with Section 18-7 of | 20 |
| the School Code.
| 21 |
| (b-1) Beginning in State fiscal year 1996, on the 15th day | 22 |
| of each month,
or as soon thereafter as may be practicable, the | 23 |
| Board shall submit vouchers
for payment of State contributions | 24 |
| to the System, in a total monthly amount of
one-twelfth of the | 25 |
| required annual State contribution certified under
subsection | 26 |
| (a-1).
From the
effective date of this amendatory Act of the |
|
|
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| 93rd General Assembly
through June 30, 2004, the Board shall | 2 |
| not submit vouchers for the
remainder of fiscal year 2004 in | 3 |
| excess of the fiscal year 2004
certified contribution amount | 4 |
| determined under this Section
after taking into consideration | 5 |
| the transfer to the System
under subsection (a) of Section | 6 |
| 6z-61 of the State Finance Act.
These vouchers shall be paid by | 7 |
| the State Comptroller and
Treasurer by warrants drawn on the | 8 |
| funds appropriated to the System for that
fiscal year.
| 9 |
| If in any month the amount remaining unexpended from all | 10 |
| other appropriations
to the System for the applicable fiscal | 11 |
| year (including the appropriations to
the System under Section | 12 |
| 8.12 of the State Finance Act and Section 1 of the
State | 13 |
| Pension Funds Continuing Appropriation Act) is less than the | 14 |
| amount
lawfully vouchered under this subsection, the | 15 |
| difference shall be paid from the
Common School Fund under the | 16 |
| continuing appropriation authority provided in
Section 1.1 of | 17 |
| the State Pension Funds Continuing Appropriation Act.
| 18 |
| (b-2) Allocations from the Common School Fund apportioned | 19 |
| to school
districts not coming under this System shall not be | 20 |
| diminished or affected by
the provisions of this Article.
| 21 |
| (b-3) The
For State fiscal years 2011 through 2045, the
| 22 |
| minimum contribution
to the System to be made by the State for | 23 |
| each fiscal year shall be an amount
determined by the System to | 24 |
| be sufficient to bring the total assets of the
System up to 90% | 25 |
| of the total actuarial liabilities of the System by the end of
| 26 |
| State fiscal year 2040 as
2045. In making these determinations, |
|
|
|
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| the required State
contribution shall be calculated each year | 2 |
| as a level percentage of payroll
over the years remaining to | 3 |
| and including fiscal year 2045 and shall be
determined under | 4 |
| the projected unit credit actuarial cost method.
| 5 |
| For State fiscal years 1996 through 2005, the State | 6 |
| contribution to the
System, as a percentage of the applicable | 7 |
| employee payroll, shall be increased
in equal annual increments | 8 |
| so that by State fiscal year 2011, the State is
contributing at | 9 |
| the rate required under this Section; except that in the
| 10 |
| following specified State fiscal years, the State contribution | 11 |
| to the System
shall not be less than the following indicated | 12 |
| percentages of the applicable
employee payroll, even if the | 13 |
| indicated percentage will produce a State
contribution in | 14 |
| excess of the amount otherwise required under this subsection
| 15 |
| and subsection (a), and notwithstanding any contrary | 16 |
| certification made under
subsection (a-1) before the effective | 17 |
| date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 18 |
| in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 19 |
| 2003; and
13.56% in FY 2004.
| 20 |
| Notwithstanding any other provision of this Article, the | 21 |
| total required State
contribution for State fiscal year 2006 is | 22 |
| $534,627,700.
| 23 |
| Notwithstanding any other provision of this Article, the | 24 |
| total required State
contribution for State fiscal year 2007 is | 25 |
| $738,014,500.
| 26 |
| Notwithstanding any other provision of this Article, the |
|
|
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| total required State
contribution for State fiscal year 2008 is | 2 |
| $738,014,500 minus the sum of (i) the System's proportionate | 3 |
| share of principal repayment due in State fiscal year 2008 for | 4 |
| the bonds authorized by Public Act 93-2 and (ii) the System's | 5 |
| proportionate share of principal and interest, if any, due in | 6 |
| State fiscal year 2008 for the bonds authorized by this | 7 |
| amendatory Act of the 95th General Assembly.
| 8 |
| For each of State fiscal years 2009
2008 through 2040
2010 , | 9 |
| the State contribution to
the System , as a percentage of the | 10 |
| applicable employee payroll, shall be
increased in equal annual | 11 |
| amounts
increments from the required State contribution for the | 12 |
| preceding State fiscal year 2007 , so that by State fiscal year | 13 |
| 2040
2011 , the
State is contributing at the rate otherwise | 14 |
| required under this Section.
| 15 |
| Beginning in State fiscal year 2041
2046 , the minimum State | 16 |
| contribution for
each fiscal year shall be the amount needed to | 17 |
| maintain the total assets of
the System at 90% of the total | 18 |
| actuarial liabilities of the System.
| 19 |
| Amounts received by the System pursuant to Section 25 of | 20 |
| the Budget Stabilization Act in any fiscal year do not reduce | 21 |
| and do not constitute payment of any portion of the minimum | 22 |
| State contribution required under this Article in that fiscal | 23 |
| year. Such amounts shall not reduce, and shall not be included | 24 |
| in the calculation of, the required State contributions under | 25 |
| this Article in any future year until the System has reached a | 26 |
| funding ratio of at least 90%. A reference in this Article to |
|
|
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| the "required State contribution" or any substantially similar | 2 |
| term does not include or apply to any amounts payable to the | 3 |
| System under Section 25 of the Budget Stabilization Act. | 4 |
| Notwithstanding any other provision of this Section, the | 5 |
| required State
contribution for State fiscal year 2009
2005 and | 6 |
| for fiscal year 2008 and each fiscal year thereafter, as
| 7 |
| calculated under this Section and
certified under subsection | 8 |
| (a-1), shall not exceed an amount equal to (i) the
amount of | 9 |
| the required State contribution that would have been calculated | 10 |
| under
this Section for that fiscal year if the System had not | 11 |
| received any payments
under subsection (d) of Section 7.2 of | 12 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 13 |
| State's total debt service payments for that fiscal
year on the | 14 |
| bonds issued for the purposes of that Section 7.2, as | 15 |
| determined
and certified by the Comptroller, that is the same | 16 |
| as the System's portion of
the total moneys distributed under | 17 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 18 |
| Act. In determining this maximum for State fiscal years 2008 | 19 |
| through 2010, however, the amount referred to in item (i) shall | 20 |
| be increased, as a percentage of the applicable employee | 21 |
| payroll, in equal increments calculated from the sum of the | 22 |
| required State contribution for State fiscal year 2007 plus the | 23 |
| applicable portion of the State's total debt service payments | 24 |
| for fiscal year 2007 on the bonds issued for the purposes of | 25 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 26 |
| State fiscal year 2011, the
State is contributing at the rate |
|
|
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| 1 |
| otherwise required under this Section.
| 2 |
| (c) Payment of the required State contributions and of all | 3 |
| pensions,
retirement annuities, death benefits, refunds, and | 4 |
| other benefits granted
under or assumed by this System, and all | 5 |
| expenses in connection with the
administration and operation | 6 |
| thereof, are obligations of the State.
| 7 |
| If members are paid from special trust or federal funds | 8 |
| which are
administered by the employing unit, whether school | 9 |
| district or other
unit, the employing unit shall pay to the | 10 |
| System from such
funds the full accruing retirement costs based | 11 |
| upon that
service, as determined by the System. Employer | 12 |
| contributions, based on
salary paid to members from federal | 13 |
| funds, may be forwarded by the distributing
agency of the State | 14 |
| of Illinois to the System prior to allocation, in an
amount | 15 |
| determined in accordance with guidelines established by such
| 16 |
| agency and the System.
| 17 |
| (d) Effective July 1, 1986, any employer of a teacher as | 18 |
| defined in
paragraph (8) of Section 16-106 shall pay the | 19 |
| employer's normal cost
of benefits based upon the teacher's | 20 |
| service, in addition to
employee contributions, as determined | 21 |
| by the System. Such employer
contributions shall be forwarded | 22 |
| monthly in accordance with guidelines
established by the | 23 |
| System.
| 24 |
| However, with respect to benefits granted under Section | 25 |
| 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 26 |
| of Section 16-106, the
employer's contribution shall be 12% |
|
|
|
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| (rather than 20%) of the member's
highest annual salary rate | 2 |
| for each year of creditable service granted, and
the employer | 3 |
| shall also pay the required employee contribution on behalf of
| 4 |
| the teacher. For the purposes of Sections 16-133.4 and | 5 |
| 16-133.5, a teacher
as defined in paragraph (8) of Section | 6 |
| 16-106 who is serving in that capacity
while on leave of | 7 |
| absence from another employer under this Article shall not
be | 8 |
| considered an employee of the employer from which the teacher | 9 |
| is on leave.
| 10 |
| (e) Beginning July 1, 1998, every employer of a teacher
| 11 |
| shall pay to the System an employer contribution computed as | 12 |
| follows:
| 13 |
| (1) Beginning July 1, 1998 through June 30, 1999, the | 14 |
| employer
contribution shall be equal to 0.3% of each | 15 |
| teacher's salary.
| 16 |
| (2) Beginning July 1, 1999 and thereafter, the employer
| 17 |
| contribution shall be equal to 0.58% of each teacher's | 18 |
| salary.
| 19 |
| The school district or other employing unit may pay these | 20 |
| employer
contributions out of any source of funding available | 21 |
| for that purpose and
shall forward the contributions to the | 22 |
| System on the schedule established
for the payment of member | 23 |
| contributions.
| 24 |
| These employer contributions are intended to offset a | 25 |
| portion of the cost
to the System of the increases in | 26 |
| retirement benefits resulting from this
amendatory Act of 1998.
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| Each employer of teachers is entitled to a credit against | 2 |
| the contributions
required under this subsection (e) with | 3 |
| respect to salaries paid to teachers
for the period January 1, | 4 |
| 2002 through June 30, 2003, equal to the amount paid
by that | 5 |
| employer under subsection (a-5) of Section 6.6 of the State | 6 |
| Employees
Group Insurance Act of 1971 with respect to salaries | 7 |
| paid to teachers for that
period.
| 8 |
| The additional 1% employee contribution required under | 9 |
| Section 16-152 by
this amendatory Act of 1998 is the | 10 |
| responsibility of the teacher and not the
teacher's employer, | 11 |
| unless the employer agrees, through collective bargaining
or | 12 |
| otherwise, to make the contribution on behalf of the teacher.
| 13 |
| If an employer is required by a contract in effect on May | 14 |
| 1, 1998 between the
employer and an employee organization to | 15 |
| pay, on behalf of all its full-time
employees
covered by this | 16 |
| Article, all mandatory employee contributions required under
| 17 |
| this Article, then the employer shall be excused from paying | 18 |
| the employer
contribution required under this subsection (e) | 19 |
| for the balance of the term
of that contract. The employer and | 20 |
| the employee organization shall jointly
certify to the System | 21 |
| the existence of the contractual requirement, in such
form as | 22 |
| the System may prescribe. This exclusion shall cease upon the
| 23 |
| termination, extension, or renewal of the contract at any time | 24 |
| after May 1,
1998.
| 25 |
| (f) If the amount of a teacher's salary for any school year | 26 |
| used to determine final average salary exceeds the member's |
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| annual full-time salary rate with the same employer for the | 2 |
| previous school year by more than 6%, the teacher's employer | 3 |
| shall pay to the System, in addition to all other payments | 4 |
| required under this Section and in accordance with guidelines | 5 |
| established by the System, the present value of the increase in | 6 |
| benefits resulting from the portion of the increase in salary | 7 |
| that is in excess of 6%. This present value shall be computed | 8 |
| by the System on the basis of the actuarial assumptions and | 9 |
| tables used in the most recent actuarial valuation of the | 10 |
| System that is available at the time of the computation. If a | 11 |
| teacher's salary for the 2005-2006 school year is used to | 12 |
| determine final average salary under this subsection (f), then | 13 |
| the changes made to this subsection (f) by Public Act 94-1057 | 14 |
| shall apply in calculating whether the increase in his or her | 15 |
| salary is in excess of 6%. For the purposes of this Section, | 16 |
| change in employment under Section 10-21.12 of the School Code | 17 |
| on or after June 1, 2005 shall constitute a change in employer. | 18 |
| The System may require the employer to provide any pertinent | 19 |
| information or documentation.
The changes made to this | 20 |
| subsection (f) by this amendatory Act of the 94th General | 21 |
| Assembly apply without regard to whether the teacher was in | 22 |
| service on or after its effective date.
| 23 |
| Whenever it determines that a payment is or may be required | 24 |
| under this subsection, the System shall calculate the amount of | 25 |
| the payment and bill the employer for that amount. The bill | 26 |
| shall specify the calculations used to determine the amount |
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| due. If the employer disputes the amount of the bill, it may, | 2 |
| within 30 days after receipt of the bill, apply to the System | 3 |
| in writing for a recalculation. The application must specify in | 4 |
| detail the grounds of the dispute and, if the employer asserts | 5 |
| that the calculation is subject to subsection (g) or (h) of | 6 |
| this Section, must include an affidavit setting forth and | 7 |
| attesting to all facts within the employer's knowledge that are | 8 |
| pertinent to the applicability of that subsection. Upon | 9 |
| receiving a timely application for recalculation, the System | 10 |
| shall review the application and, if appropriate, recalculate | 11 |
| the amount due.
| 12 |
| The employer contributions required under this subsection | 13 |
| (f) may be paid in the form of a lump sum within 90 days after | 14 |
| receipt of the bill. If the employer contributions are not paid | 15 |
| within 90 days after receipt of the bill, then interest will be | 16 |
| charged at a rate equal to the System's annual actuarially | 17 |
| assumed rate of return on investment compounded annually from | 18 |
| the 91st day after receipt of the bill. Payments must be | 19 |
| concluded within 3 years after the employer's receipt of the | 20 |
| bill.
| 21 |
| (g) This subsection (g) applies only to payments made or | 22 |
| salary increases given on or after June 1, 2005 but before July | 23 |
| 1, 2011. The changes made by Public Act 94-1057 shall not | 24 |
| require the System to refund any payments received before
July | 25 |
| 31, 2006 (the effective date of Public Act 94-1057). | 26 |
| When assessing payment for any amount due under subsection |
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| (f), the System shall exclude salary increases paid to teachers | 2 |
| under contracts or collective bargaining agreements entered | 3 |
| into, amended, or renewed before June 1, 2005.
| 4 |
| When assessing payment for any amount due under subsection | 5 |
| (f), the System shall exclude salary increases paid to a | 6 |
| teacher at a time when the teacher is 10 or more years from | 7 |
| retirement eligibility under Section 16-132 or 16-133.2.
| 8 |
| When assessing payment for any amount due under subsection | 9 |
| (f), the System shall exclude salary increases resulting from | 10 |
| overload work, including summer school, when the school | 11 |
| district has certified to the System, and the System has | 12 |
| approved the certification, that (i) the overload work is for | 13 |
| the sole purpose of classroom instruction in excess of the | 14 |
| standard number of classes for a full-time teacher in a school | 15 |
| district during a school year and (ii) the salary increases are | 16 |
| equal to or less than the rate of pay for classroom instruction | 17 |
| computed on the teacher's current salary and work schedule.
| 18 |
| When assessing payment for any amount due under subsection | 19 |
| (f), the System shall exclude a salary increase resulting from | 20 |
| a promotion (i) for which the employee is required to hold a | 21 |
| certificate or supervisory endorsement issued by the State | 22 |
| Teacher Certification Board that is a different certification | 23 |
| or supervisory endorsement than is required for the teacher's | 24 |
| previous position and (ii) to a position that has existed and | 25 |
| been filled by a member for no less than one complete academic | 26 |
| year and the salary increase from the promotion is an increase |
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| that results in an amount no greater than the lesser of the | 2 |
| average salary paid for other similar positions in the district | 3 |
| requiring the same certification or the amount stipulated in | 4 |
| the collective bargaining agreement for a similar position | 5 |
| requiring the same certification.
| 6 |
| When assessing payment for any amount due under subsection | 7 |
| (f), the System shall exclude any payment to the teacher from | 8 |
| the State of Illinois or the State Board of Education over | 9 |
| which the employer does not have discretion, notwithstanding | 10 |
| that the payment is included in the computation of final | 11 |
| average salary.
| 12 |
| (h) When assessing payment for any amount due under | 13 |
| subsection (f), the System shall exclude any salary increase | 14 |
| described in subsection (g) 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 (f) of this Section.
| 22 |
| (i) 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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| 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 |
| (j) Notwithstanding this Act or any other law to the | 12 |
| contrary, the Board must ensure that at least 19% of the | 13 |
| proceeds received by the Board from any concession lease | 14 |
| agreement of the Illinois Lottery as well as at least 19% of | 15 |
| the proceeds from the issuance of general obligation bonds | 16 |
| under the General Obligation Bond Act authorized by this | 17 |
| amendatory Act of the 95th General Assembly are invested | 18 |
| through qualified investment advisers who are a "minority owned | 19 |
| business" or a "female owned business" as those terms are | 20 |
| defined in the Business Enterprise for Minorities, Females, and | 21 |
| Persons with Disabilities Act.
| 22 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 23 |
| eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057, eff. 7-31-06; | 24 |
| 94-1111, eff. 2-27-07.)
| 25 |
| (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
|
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| Sec. 18-131. Financing; employer contributions.
| 2 |
| (a) The State of Illinois shall make contributions to this | 3 |
| System by
appropriations of the amounts which, together with | 4 |
| the contributions of
participants, net earnings on | 5 |
| investments, and other income, will meet the
costs of | 6 |
| maintaining and administering this System on a 90% funded basis | 7 |
| in
accordance with actuarial recommendations.
| 8 |
| (b) The Board shall determine the amount of State | 9 |
| contributions
required for each fiscal year on the basis of the | 10 |
| actuarial tables and other
assumptions adopted by the Board and | 11 |
| the prescribed rate of interest, using
the formula in | 12 |
| subsection (c).
| 13 |
| (c) The
For State fiscal years 2011 through 2045, the
| 14 |
| minimum contribution
to the System to be made by the State for | 15 |
| each fiscal year shall be an amount
determined by the System to | 16 |
| be sufficient to bring the total assets of the
System up to 90% | 17 |
| of the total actuarial liabilities of the System by the end of
| 18 |
| State fiscal year 2040 as
2045. In making these determinations, | 19 |
| the required State
contribution shall be calculated each year | 20 |
| as a level percentage of payroll
over the years remaining to | 21 |
| and including fiscal year 2045 and shall be
determined under | 22 |
| the projected unit credit actuarial cost method.
| 23 |
| For State fiscal years 1996 through 2005, the State | 24 |
| contribution to
the System, as a percentage of the applicable | 25 |
| employee payroll, shall be
increased in equal annual increments | 26 |
| so that by State fiscal year 2011, the
State is contributing at |
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| the rate required under this Section.
| 2 |
| Notwithstanding any other provision of this Article, the | 3 |
| total required State
contribution for State fiscal year 2006 is | 4 |
| $29,189,400.
| 5 |
| Notwithstanding any other provision of this Article, the | 6 |
| total required State
contribution for State fiscal year 2007 is | 7 |
| $35,236,800.
| 8 |
| Notwithstanding any other provision of this Article, the | 9 |
| total required State
contribution for State fiscal year 2008 is | 10 |
| $35,236,800 minus the sum of (i) the System's proportionate | 11 |
| share of principal repayment due in State fiscal year 2008 for | 12 |
| the bonds authorized by Public Act 93-2 and (ii) the System's | 13 |
| proportionate share of principal and interest, if any, due in | 14 |
| State fiscal year 2008 for the bonds authorized by this | 15 |
| amendatory Act of the 95th General Assembly.
| 16 |
| For each of State fiscal years 2009
2008 through 2040
2010 , | 17 |
| the State contribution to
the System , as a percentage of the | 18 |
| applicable employee payroll, shall be
increased in equal annual | 19 |
| amounts
increments from the required State contribution for the | 20 |
| preceding State fiscal year 2007 , so that by State fiscal year | 21 |
| 2040
2011 , the
State is contributing at the rate otherwise | 22 |
| required under this Section.
| 23 |
| Beginning in State fiscal year 2046, the minimum State | 24 |
| contribution for
each fiscal year shall be the amount needed to | 25 |
| maintain the total assets of
the System at 90% of the total | 26 |
| actuarial liabilities of the System.
|
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| Amounts received by the System pursuant to Section 25 of | 2 |
| the Budget Stabilization Act in any fiscal year do not reduce | 3 |
| and do not constitute payment of any portion of the minimum | 4 |
| State contribution required under this Article in that fiscal | 5 |
| year. Such amounts shall not reduce, and shall not be included | 6 |
| in the calculation of, the required State contributions under | 7 |
| this Article in any future year until the System has reached a | 8 |
| funding ratio of at least 90%. A reference in this Article to | 9 |
| the "required State contribution" or any substantially similar | 10 |
| term does not include or apply to any amounts payable to the | 11 |
| System under Section 25 of the Budget Stabilization Act.
| 12 |
| Notwithstanding any other provision of this Section, the | 13 |
| required State
contribution for State fiscal year 2009
2005 and | 14 |
| for fiscal year 2008 and each fiscal year thereafter, as
| 15 |
| calculated under this Section and
certified under Section | 16 |
| 18-140, shall not exceed an amount equal to (i) the
amount of | 17 |
| the required State contribution that would have been calculated | 18 |
| under
this Section for that fiscal year if the System had not | 19 |
| received any payments
under subsection (d) of Section 7.2 of | 20 |
| the General Obligation Bond Act, minus
(ii) the portion of the | 21 |
| State's total debt service payments for that fiscal
year on the | 22 |
| bonds issued for the purposes of that Section 7.2, as | 23 |
| determined
and certified by the Comptroller, that is the same | 24 |
| as the System's portion of
the total moneys distributed under | 25 |
| subsection (d) of Section 7.2 of the General
Obligation Bond | 26 |
| Act. In determining this maximum for State fiscal years 2008 |
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| through 2010, however, the amount referred to in item (i) shall | 2 |
| be increased, as a percentage of the applicable employee | 3 |
| payroll, in equal increments calculated from the sum of the | 4 |
| required State contribution for State fiscal year 2007 plus the | 5 |
| applicable portion of the State's total debt service payments | 6 |
| for fiscal year 2007 on the bonds issued for the purposes of | 7 |
| Section 7.2 of the General
Obligation Bond Act, so that, by | 8 |
| State fiscal year 2011, the
State is contributing at the rate | 9 |
| otherwise required under this Section.
| 10 |
| (Source: P.A. 93-2, eff. 4-7-03; 94-4, eff. 6-1-05; 94-839, | 11 |
| eff. 6-6-06.)
| 12 |
| (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 13 |
| Sec. 18-140. To certify required State contributions and | 14 |
| submit vouchers.
| 15 |
| (a) The Board shall certify to the Governor, on or before | 16 |
| November 15 of
each year, the amount of the required State | 17 |
| contribution to the System for the
following fiscal year. The | 18 |
| certification shall include a copy of the actuarial
| 19 |
| recommendations upon which it is based.
| 20 |
| On or before May 1, 2004, the Board shall recalculate and | 21 |
| recertify to
the Governor the amount of the required State | 22 |
| contribution to the System for
State fiscal year 2005, taking | 23 |
| into account the amounts appropriated to and
received by the | 24 |
| System under subsection (d) of Section 7.2 of the General
| 25 |
| Obligation Bond Act.
|
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| On or before July 1, 2005, the Board shall recalculate and | 2 |
| recertify
to the Governor the amount of the required State
| 3 |
| contribution to the System for State fiscal year 2006, taking | 4 |
| into account the changes in required State contributions made | 5 |
| by this amendatory Act of the 94th General Assembly.
| 6 |
| On or before July 1, 2007, the board shall recalculate and | 7 |
| recertify to the Governor the amount of the required State | 8 |
| contribution to the System for State fiscal year 2008, taking | 9 |
| into account the changes in required contributions made by this | 10 |
| amendatory Act of the 95th General Assembly.
| 11 |
| (b) Beginning in State fiscal year 1996, on or as soon as | 12 |
| possible after
the 15th day of each month the Board shall | 13 |
| submit vouchers for payment of State
contributions to the | 14 |
| System, in a total monthly amount of one-twelfth of the
| 15 |
| required annual State contribution certified under subsection | 16 |
| (a).
From the effective date of this amendatory Act
of the 93rd | 17 |
| General Assembly through June 30, 2004, the Board shall not
| 18 |
| submit vouchers for the remainder of fiscal year 2004 in excess | 19 |
| of the
fiscal year 2004 certified contribution amount | 20 |
| determined
under this Section after taking into consideration | 21 |
| the transfer to the
System under subsection (c) of Section | 22 |
| 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 23 |
| the State Comptroller and Treasurer by warrants drawn
on the | 24 |
| funds appropriated to the System for that fiscal year.
| 25 |
| If in any month the amount remaining unexpended from all | 26 |
| other
appropriations to the System for the applicable fiscal |
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| year (including the
appropriations to the System under Section | 2 |
| 8.12 of the State Finance Act and
Section 1 of the State | 3 |
| Pension Funds Continuing Appropriation Act) is less than
the | 4 |
| amount lawfully vouchered under this Section, the difference | 5 |
| shall be paid
from the General Revenue Fund under the | 6 |
| continuing appropriation authority
provided in Section 1.1 of | 7 |
| the State Pension Funds Continuing Appropriation
Act.
| 8 |
| (c) Notwithstanding this Act or any other law to the | 9 |
| contrary, the Board must ensure that at least 19% of the | 10 |
| proceeds received by the Board from any concession lease | 11 |
| agreement of the Illinois Lottery as well as at least 19% of | 12 |
| the proceeds from the issuance of general obligation bonds | 13 |
| under the General Obligation Bond Act authorized by this | 14 |
| amendatory Act of the 95th General Assembly are invested | 15 |
| through qualified investment advisers who are a "minority owned | 16 |
| business" or a "female owned business" as those terms are | 17 |
| defined in the Business Enterprise for Minorities, Females, and | 18 |
| Persons with Disabilities Act.
| 19 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 20 |
| eff. 6-1-05.)
| 21 |
| Section 99. Effective date. This Act takes effect upon | 22 |
| becoming law.".
|
|