40 ILCS 5/15-155

(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)

Sec. 15-155. Employer contributions.

(a) The State of Illinois shall make contributions by appropriations of
amounts which, together with the other employer contributions from trust,
federal, and other funds, employee contributions, income from investments,
and other income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis in accordance
with actuarial recommendations.

The Board shall determine the amount of State contributions required for
each fiscal year on the basis of the actuarial tables and other assumptions
adopted by the Board and the recommendations of the actuary, using the formula
in subsection (a-1).

(a-1) For State fiscal years 2012 through 2045, the minimum contribution
to the System to be made by the State for each fiscal year shall be an amount
determined by the System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the System by the end of
State fiscal year 2045.  In making these determinations, the required State
contribution shall be calculated each year as a level percentage of payroll
over the years remaining to and including fiscal year 2045 and shall be
determined under the projected unit credit actuarial cost method.

For State fiscal years 1996 through 2005, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments so that by State fiscal year 2011, the
State is contributing at the rate required under this Section.

Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2006 is $166,641,900.

Notwithstanding any other provision of this Article, the total required State
contribution for State fiscal year 2007 is $252,064,100.

For each of State fiscal years 2008 through 2009, the State contribution to
the System, as a percentage of the applicable employee payroll, shall be
increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $702,514,000 and shall be made from the State Pensions Fund and proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.

Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011 pursuant to Section 15-165 and shall be made from the State Pensions Fund and
proceeds of bonds sold in fiscal year 2011 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share of
total bond proceeds, (ii) any amounts received from the General
Revenue Fund in fiscal year 2011, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.

Beginning in State fiscal year 2046, the minimum State contribution for
each fiscal year shall be the amount needed to maintain the total assets of
the System at 90% of the total actuarial liabilities of the System.

Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year.  Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%.  A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under  Section 25 of the Budget Stabilization Act.

Notwithstanding any other provision of this Section, the required State
contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as
calculated under this Section and
certified under Section 15-165, shall not exceed an amount equal to (i) the
amount of the required State contribution that would have been calculated under
this Section for that fiscal year if the System had not received any payments
under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus
(ii) the portion of the State's total debt service payments for that fiscal
year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined
and certified by the Comptroller, that is the same as the System's portion of
the total moneys distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007  plus the applicable portion of the State's total debt service payments for fiscal year 2007  on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General
Obligation Bond Act, so that, by State fiscal year 2011, the
State is contributing at the rate otherwise required under this Section.

(b) If an employee is paid from trust or federal funds, the employer
shall pay to the Board contributions from those funds which are
sufficient to cover the accruing normal costs on behalf of the employee.
However, universities having employees who are compensated out of local
auxiliary funds, income funds, or service enterprise funds are not required
to pay such contributions on behalf of those employees.  The local auxiliary
funds, income funds, and service enterprise funds of universities shall not be
considered trust funds for the purpose of this Article, but funds of alumni
associations, foundations, and athletic associations which are affiliated with
the universities included as employers under this Article and other employers
which do not receive State appropriations are considered to be trust funds for
the purpose of this Article.

(b-1) The City of Urbana and the City of Champaign shall each make
employer contributions to this System for their respective firefighter
employees who participate in this System pursuant to subsection (h) of Section
15-107.  The rate of contributions to be made by those municipalities shall
be determined annually by the Board on the basis of the actuarial assumptions
adopted by the Board and the recommendations of the actuary, and shall be
expressed as a percentage of salary for each such employee.  The Board shall
certify the rate to the affected municipalities as soon as may be practical.
The employer contributions required under this subsection shall be remitted by
the municipality to the System at the same time and in the same manner as
employee contributions.

(c) Through State fiscal year 1995: The total employer contribution shall
be apportioned among the various funds of the State and other employers,
whether trust, federal, or other funds, in accordance with actuarial procedures
approved by the Board.  State of Illinois contributions for employers receiving
State appropriations for personal services shall be payable from appropriations
made to the employers or to the System.  The contributions for Class I
community colleges covering earnings other than those paid from trust and
federal funds, shall be payable solely from appropriations to the Illinois
Community College Board or the System for employer contributions.

(d) Beginning in State fiscal year 1996, the required State contributions
to the System shall be appropriated directly to the System and shall be payable
through vouchers issued in accordance with subsection (c) of Section 15-165, except as provided in subsection (g).

(e) The State Comptroller shall draw warrants payable to the System upon
proper certification by the System or by the employer in accordance with the
appropriation laws and this Code.

(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System because of the
credits earned for service rendered by the participants during the
fiscal year and expenses of administering the System, but shall not
include the principal of or any redemption premium or interest on any bonds
issued by the Board or any expenses incurred or deposits required in
connection therewith.

(g) If the amount of a participant's earnings for any academic year used to determine the final rate of earnings, determined on a full-time equivalent basis, exceeds the amount of his or her earnings with the same employer for the previous academic year, determined on a full-time equivalent basis, by more than 6%, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in earnings that is in excess of 6%.  This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation.   The System may require the employer to provide any pertinent information or documentation.

Whenever it determines that a payment is or may be required under this subsection (g), the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (h) or (i) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of subsection (h) or (i). Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.

The employer contributions required under this subsection (f) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after the employer's receipt of the bill.

(h) This subsection (h) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011. The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July 31, 2006 (the effective date of Public Act 94-1057).

When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases paid to participants under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.

When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases paid to a participant  at a time when the participant is 10 or more years from retirement eligibility under Section 15-135.

When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases resulting from overload work, including a contract for summer teaching, or overtime when the employer has certified to the System, and the System has approved the certification, that: (i) in the case of overloads (A) the overload work is for the sole purpose of academic instruction in excess of the standard number of instruction hours for a full-time employee occurring during the academic year that the overload is paid and (B) the earnings increases are equal to or less than the rate of pay for academic instruction computed using the participant's current salary rate and work schedule; and (ii) in the case of overtime, the overtime was necessary for the educational mission.

When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase resulting from (i) a promotion for which the employee moves from one classification to a higher classification under the State Universities Civil Service System, (ii) a promotion in academic rank for a tenured or tenure-track faculty position, or (iii) a promotion that the Illinois Community College Board has recommended in accordance with subsection (k) of this Section. These earnings increases shall be excluded only if the promotion is to a position that has existed and been filled by a member for no less than one complete academic year and the earnings increase as a result of the promotion is an increase that results in an amount no greater than the average salary paid for other similar positions.

(i) When assessing payment for any amount due under subsection (g), the System shall exclude any salary increase  described in subsection (h) of this Section given on or after  July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Notwithstanding any other provision of this Section, any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (g) of this Section.

(j) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information:

(1) The number of recalculations required by the