Public Act 093-0665
 
HB0585 Enrolled LRB093 05674 EFG 05767 b

    AN ACT in relation to pensions.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Finance Act is amended by changing
Sections 8.12, 8a, and 14.1 and adding Section 6z-61 as
follows:
 
    (30 ILCS 105/6z-61 new)
    Sec. 6z-61. Transfers from Pension Contribution Fund.
    (a) As soon as practicable after the effective date of this
amendatory Act of the 93rd General Assembly, the State
Comptroller shall direct and the State Treasurer shall transfer
from the Pension Contribution Fund to the Teachers' Retirement
System of Illinois an amount equal to the unexpended balance of
the fiscal year 2004 appropriations to the System from the
General Revenue Fund, the Education Assistance Fund, the Common
School Fund, and the State Pensions Fund so that the amount
received by the System in fiscal year 2004 is equal to the
fiscal year 2004 certified contribution amount for the System
as determined under Section 16-158 of the Illinois Pension
Code.
    (b) As soon as practicable after the effective date of this
amendatory Act of the 93rd General Assembly, the State
Comptroller shall direct and the State Treasurer shall transfer
from the Pension Contribution Fund to the State Universities
Retirement System an amount equal to the unexpended balance of
the fiscal year 2004 appropriations to the System from the
General Revenue Fund, the Education Assistance Fund, and the
State Pensions Fund so that the amount received by the System
in fiscal year 2004 is equal to the fiscal year 2004 certified
contribution amount for the System as determined under Section
15-165 of the Illinois Pension Code.
    (c) As soon as practicable after the effective date of this
amendatory Act of the 93rd General Assembly, the State
Comptroller shall direct and the State Treasurer shall transfer
from the Pension Contribution Fund to the Judges Retirement
System of Illinois an amount equal to the unexpended balance of
the fiscal year 2004 appropriations to the System from the
General Revenue Fund and the State Pensions Fund so that the
amount received by the System in fiscal year 2004 is equal to
the fiscal year 2004 certified contribution amount for the
System as determined under Section 18-140 of the Illinois
Pension Code.
    (d) As soon as practicable after the effective date of this
amendatory Act of the 93rd General Assembly, the State
Comptroller shall direct and the State Treasurer shall transfer
from the Pension Contribution Fund to the General Assembly
Retirement System an amount equal to the unexpended balance of
the fiscal year 2004 appropriations to the System from the
General Revenue Fund and the State Pensions Fund so that the
amount received by the System in fiscal year 2004 is equal to
the fiscal year 2004 certified contribution amount for the
System as determined under Section 2-134 of the Illinois
Pension Code.
    (e) As soon as practicable after the effective date of this
amendatory Act of the 93rd General Assembly, and taking into
consideration the transfers provided for by subsections (a),
(b), (c), and (d), the State Comptroller shall direct and the
State Treasurer shall transfer the remaining balance in the
Pension Contribution Fund to the State Employees' Retirement
System of Illinois.
 
    (30 ILCS 105/8.12)   (from Ch. 127, par. 144.12)
    Sec. 8.12. State Pensions Fund.
    (a) The moneys in the State Pensions Fund shall be used
exclusively for the administration of the Uniform Disposition
of Unclaimed Property Act and for the payment of or repayment
to the General Revenue Fund a portion of the required State
contributions to the designated retirement systems.
    "Designated retirement systems" means:
        (1) the State Employees' Retirement System of
Illinois;
        (2) the Teachers' Retirement System of the State of
Illinois;
        (3) the State Universities Retirement System;
        (4) the Judges Retirement System of Illinois; and
        (5) the General Assembly Retirement System.
    (b) Each year the General Assembly may make appropriations
from the State Pensions Fund for the administration of the
Uniform Disposition of Unclaimed Property Act.
    Each month, the Commissioner of the Office of Banks and
Real Estate shall certify to the State Treasurer the actual
expenditures that the Office of Banks and Real Estate incurred
conducting unclaimed property examinations under the Uniform
Disposition of Unclaimed Property Act during the immediately
preceding month. Within a reasonable time following the
acceptance of such certification by the State Treasurer, the
State Treasurer shall pay from its appropriation from the State
Pensions Fund to the Bank and Trust Company Fund and the
Savings and Residential Finance Regulatory Fund an amount equal
to the expenditures incurred by each Fund for that month.
    Each month, the Director of Financial Institutions shall
certify to the State Treasurer the actual expenditures that the
Department of Financial Institutions incurred conducting
unclaimed property examinations under the Uniform Disposition
of Unclaimed Property Act during the immediately preceding
month. Within a reasonable time following the acceptance of
such certification by the State Treasurer, the State Treasurer
shall pay from its appropriation from the State Pensions Fund
to the Financial Institutions Fund and the Credit Union Fund an
amount equal to the expenditures incurred by each Fund for that
month.
    (c) Each year the General Assembly shall appropriate a
total amount equal to the balance in the State Pensions Fund at
the close of business on June 30 of the preceding fiscal year,
less $5,000,000, as part of the required State contributions to
the designated retirement systems. The amount of the
appropriation to each designated retirement system shall
constitute a portion of the total appropriation under this
subsection for that fiscal year which is the same as that
retirement system's portion of the total actuarial reserve
deficiency of the systems, as most recently determined by the
Governor's Office of Management and Budget Bureau of the
Budget.
    (d) The Governor's Office of Management and Budget Bureau
of the Budget shall determine the individual and total reserve
deficiencies of the designated retirement systems. For this
purpose, the Governor's Office of Management and Budget Bureau
of the Budget shall utilize the latest available audit and
actuarial reports of each of the retirement systems and the
relevant reports and statistics of the Public Employee Pension
Fund Division of the Department of Insurance.
    (d-1) As soon as practicable after the effective date of
this amendatory Act of the 93rd General Assembly, the
Comptroller shall direct and the Treasurer shall transfer from
the State Pensions Fund to the General Revenue Fund, as funds
become available, a sum equal to the amounts that would have
been paid from the State Pensions Fund to the Teachers'
Retirement System of the State of Illinois, the State
Universities Retirement System, the Judges Retirement System
of Illinois, the General Assembly Retirement System, and the
State Employees' Retirement System of Illinois after the
effective date of this amendatory Act during the remainder of
fiscal year 2004 to the designated retirement systems from the
appropriations provided for in this Section if the transfers
provided in Section 6z-61 had not occurred. The transfers
described in this subsection (d-1) are to partially repay the
General Revenue Fund for the costs associated with the bonds
used to fund the moneys transferred to the designated
retirement systems under Section 6z-61.
    (e) The changes to this Section made by this amendatory Act
of 1994 shall first apply to distributions from the Fund for
State fiscal year 1996.
(Source: P.A. 91-16, eff. 7-1-99; revised 8-23-03.)
 
    (30 ILCS 105/8a)   (from Ch. 127, par. 144a)
    Sec. 8a. Common School Fund; transfers to Common School
Fund and Education Assistance Fund.
    (a) Except as provided in subsection (b) of this Section
and except as otherwise provided in this subsection (a) with
respect to amounts transferred from the General Revenue Fund to
the Common School Fund for distribution therefrom for the
benefit of the Teachers' Retirement System of the State of
Illinois and the Public School Teachers' Pension and Retirement
Fund of Chicago:
        (1) With respect to all school districts, for each
fiscal year other than fiscal year 1994, on or before the
eleventh and twenty-first days of each of the months of
August through the following July, at a time or times
designated by the Governor, the State Treasurer and the
State Comptroller shall transfer from the General Revenue
Fund to the Common School Fund and Education Assistance
Fund, as appropriate, 1/24 or so much thereof as may be
necessary of the amount appropriated to the State Board of
Education for distribution to all school districts from
such Common School Fund and Education Assistance Fund, for
the fiscal year, including interest on the School Fund
proportionate for that distribution for such year.
        (2) With respect to all school districts, but for
fiscal year 1994 only, on the 11th day of August, 1993 and
on or before the 11th and 21st days of each of the months
of October, 1993 through July, 1994 at a time or times
designated by the Governor, the State Treasurer and the
State Comptroller shall transfer from the General Revenue
Fund to the Common School Fund 1/24 or so much thereof as
may be necessary of the amount appropriated to the State
Board of Education for distribution to all school districts
from such Common School Fund, for fiscal year 1994,
including interest on the School Fund proportionate for
that distribution for such year; and on or before the 21st
day of August, 1993 at a time or times designated by the
Governor, the State Treasurer and the State Comptroller
shall transfer from the General Revenue Fund to the Common
School Fund 3/24 or so much thereof as may be necessary of
the amount appropriated to the State Board of Education for
distribution to all school districts from the Common School
Fund, for fiscal year 1994, including interest
proportionate for that distribution on the School Fund for
such fiscal year.
    The amounts of the payments made in July of each year: (i)
shall be considered an outstanding liability as of the 30th day
of June immediately preceding those July payments, within the
meaning of Section 25 of this Act; (ii) shall be payable from
the appropriation for the fiscal year that ended on that 30th
day of June; and (iii) shall be considered payments for claims
covering the school year that commenced during the immediately
preceding calendar year.
    Notwithstanding the foregoing provisions of this
subsection, as soon as may be after the 10th and 20th days of
each of the months of August through May, 1/24, and on or as
soon as may be after the 10th and 20th days of June, 1/12 of the
annual amount appropriated to the State Board of Education for
distribution and payment during that fiscal year from the
Common School Fund to and for the benefit of the Teachers'
Retirement System of the State of Illinois (until the end of
State fiscal year 1995) and the Public School Teachers' Pension
and Retirement Fund of Chicago as provided by the Illinois
Pension Code and Section 18-7 of the School Code, or so much
thereof as may be necessary, shall be transferred by the State
Treasurer and the State Comptroller from the General Revenue
Fund to the Common School Fund to permit semi-monthly payments
from the Common School Fund to and for the benefit of such
teacher retirement systems as required by Section 18-7 of the
School Code.
    Notwithstanding the other provisions of this Section, on or
as soon as may be after the 15th day of each month, beginning
in July of 1995, 1/12 of the annual amount appropriated for
that fiscal year from the Common School Fund to the Teachers'
Retirement System of the State of Illinois (other than amounts
appropriated under Section 1.1 of the State Pension Funds
Continuing Appropriation Act), or so much thereof as may be
necessary, shall be transferred by the State Treasurer and the
State Comptroller from the General Revenue Fund to the Common
School Fund to permit monthly payments from the Common School
Fund to that retirement system in accordance with Section
16-158 of the Illinois Pension Code and Section 18-7 of the
School Code, except that such transfers in fiscal year 2004
from the General Revenue Fund to the Common School Fund for the
benefit of the Teachers' Retirement System of the State of
Illinois shall be reduced in the aggregate by the State
Comptroller and State Treasurer to adjust for the amount
transferred to the Teachers' Retirement System of the State of
Illinois pursuant to subsection (a) of Section 6z-61. Amounts
appropriated to the Teachers' Retirement System of the State of
Illinois under Section 1.1 of the State Pension Funds
Continuing Appropriation Act shall be transferred by the State
Treasurer and the State Comptroller from the General Revenue
Fund to the Common School Fund as necessary to provide for the
payment of vouchers drawn against those appropriations.
    The Governor may notify the State Treasurer and the State
Comptroller to transfer, at a time designated by the Governor,
such additional amount as may be necessary to effect advance
distribution to school districts of amounts that otherwise
would be payable in the next month pursuant to Sections 18-8
through 18-10 of the School Code. The State Treasurer and the
State Comptroller shall thereupon transfer such additional
amount. The aggregate amount transferred from the General
Revenue Fund to the Common School Fund in the eleven months
beginning August 1 of any fiscal year shall not be in excess of
the amount necessary for payment of claims certified by the
State Superintendent of Education pursuant to the
appropriation of the Common School Fund for that fiscal year.
Notwithstanding the provisions of the first paragraph in this
section, no transfer to effect an advance distribution shall be
made in any month except on notification, as provided above, by
the Governor.
    The State Comptroller and State Treasurer shall transfer
from the General Revenue Fund to the Common School Fund and the
Education Assistance Fund such amounts as may be required to
honor the vouchers presented by the State Board of Education
pursuant to Sections 18-3, 18-4.3, 18-5, 18-6 and 18-7 of the
School Code.
    The State Comptroller shall report all transfers provided
for in this Act to the President of the Senate, Minority Leader
of the Senate, Speaker of the House, and Minority Leader of the
House.
    (b) On or before the 11th and 21st days of each of the
months of June, 1982 through July, 1983, at a time or times
designated by the Governor, the State Treasurer and the State
Comptroller shall transfer from the General Revenue Fund to the
Common School Fund 1/24 or so much thereof as may be necessary
of the amount appropriated to the State Board of Education for
distribution from such Common School Fund, for that same fiscal
year, including interest on the School Fund for such year. The
amounts of the payments in the months of July, 1982 and July,
1983 shall be considered an outstanding liability as of the
30th day of June immediately preceding such July payment,
within the meaning of Section 25 of this Act, and shall be
payable from the appropriation for the fiscal year which ended
on such 30th day of June, and such July payments shall be
considered payments for claims covering school years 1981-1982
and 1982-1983 respectively.
    In the event the Governor makes notification to effect
advanced distribution under the provisions of subsection (a) of
this Section, the aggregate amount transferred from the General
Revenue Fund to the Common School Fund in the 12 months
beginning August 1, 1981 or the 12 months beginning August 1,
1982 shall not be in excess of the amount necessary for payment
of claims certified by the State Superintendent of Education
pursuant to the appropriation of the Common School Fund for the
fiscal years commencing on the first of July of the years 1981
and 1982.
(Source: P.A. 90-372, eff. 7-1-98; 90-587, eff. 7-1-98; 91-96,
eff. 7-9-99.)
 
    (30 ILCS 105/14.1)   (from Ch. 127, par. 150.1)
    Sec. 14.1. Appropriations for State contributions to the
State Employees' Retirement System; payroll requirements.
    (a) Appropriations for State contributions to the State
Employees' Retirement System of Illinois shall be expended in
the manner provided in this Section. Except as otherwise
provided in subsection (a-1), at the time of each payment of
salary to an employee under the personal services line item,
payment shall be made to the State Employees' Retirement
System, from the amount appropriated for State contributions to
the State Employees' Retirement System, of an amount calculated
at the rate certified for the applicable fiscal year by the
Board of Trustees of the State Employees' Retirement System
under Section 14-135.08 of the Illinois Pension Code. If a line
item appropriation to an employer for this purpose is
unavailable or exhausted, the amounts shall be paid under the
continuing appropriation for this purpose contained in the
State Pension Funds Continuing Appropriation Act.
    (a-1) Beginning on the effective date of this amendatory
Act of the 93rd General Assembly through the payment of the
final payroll from fiscal year 2004 appropriations,
appropriations for State contributions to the State Employees'
Retirement System of Illinois shall be expended in the manner
provided in this subsection (a-1). At the time of each payment
of salary to an employee under the personal services line item
from a fund other than the General Revenue Fund, payment shall
be made for deposit into the General Revenue Fund from the
amount appropriated for State contributions to the State
Employees' Retirement System of an amount calculated at the
rate certified for fiscal year 2004 by the Board of Trustees of
the State Employees' Retirement System under Section 14-135.08
of the Illinois Pension Code. This payment shall be made to the
extent that a line item appropriation to an employer for this
purpose is available or unexhausted. No payment from
appropriations for State contributions shall be made in
conjunction with payment of salary to an employee under the
personal services line item from the General Revenue Fund.
    (b) Except during the period beginning on the effective
date of this amendatory Act of the 93rd General Assembly and
ending at the time of the payment of the final payroll from
fiscal year 2004 appropriations, the State Comptroller shall
not approve for payment any payroll voucher that (1) includes
payments of salary to eligible employees in the State
Employees' Retirement System of Illinois and (2) does not
include the corresponding payment of State contributions to
that retirement system at the full rate certified under Section
14-135.08 for that fiscal year for eligible employees, unless
the balance in the fund on which the payroll voucher is drawn
is insufficient to pay the total payroll voucher. If the State
Comptroller approves a payroll voucher under this Section for
which the fund balance is insufficient to pay the full amount
of the required State contribution to the State Employees'
Retirement System, the Comptroller shall promptly so notify the
Retirement System.
(Source: P.A. 88-593, eff. 8-22-94; 89-136, eff. 7-14-95.)
 
    Section 10. The General Obligation Bond Act is amended by
changing Section 7.2 as follows:
 
    (30 ILCS 330/7.2)
    Sec. 7.2. State pension funding.
    (a) The amount of $10,000,000,000 is authorized to be used
for the purpose of making contributions to the designated
retirement systems. For the purposes of this Section,
"designated retirement systems" means the State Employees'
Retirement System of Illinois; the Teachers' Retirement System
of the State of Illinois; the State Universities Retirement
System; the Judges Retirement System of Illinois; and the
General Assembly Retirement System.
    (b) The Pension Contribution Fund is created as a special
fund in the State Treasury.
    The proceeds of the additional $10,000,000,000 of Bonds
authorized by this amendatory Act of the 93rd General Assembly,
less the amounts authorized in the Bond Sale Order to be
deposited directly into the capitalized interest account of the
General Obligation Bond Retirement and Interest Fund or
otherwise directly paid out for bond sale expenses under
Section 8, shall be deposited into the Pension Contribution
Fund and used as provided in this Section.
    (c) Of the amount of Bond proceeds first deposited into the
Pension Contribution Fund, there shall be reserved for
transfers under this subsection the sum of $300,000,000,
representing the required State contributions to the
designated retirement systems for the last quarter of State
fiscal year 2003, plus the sum of $1,860,000,000, representing
the required State contributions to the designated retirement
systems for State fiscal year 2004.
    Upon the deposit of sufficient moneys into the Pension
Contribution Fund, the Comptroller and Treasurer shall
immediately transfer the sum of $300,000,000 from the Pension
Contribution Fund to the General Revenue Fund.
    Whenever any payment of required State contributions for
State fiscal year 2004 is made to one of the designated
retirement systems, the Comptroller and Treasurer shall, as
soon as practicable, transfer from the Pension Contribution
Fund to the General Revenue Fund an amount equal to the amount
of that payment to the designated retirement system. Beginning
on the effective date of this amendatory Act of the 93rd
General Assembly, the transfers from the Pension Contribution
Fund to the General Revenue Fund shall be suspended until June
30, 2004, and the remaining balance in the Pension Contribution
Fund shall be transferred directly to the designated retirement
systems as provided in Section 6z-61 of the State Finance Act.
On and after July 1, 2004, in the event that any amount is on
deposit in the Pension Contribution Fund from time to time If
the amount reserved for these transfers exceeds the total
amount of fiscal year 2004 payments of required State
contributions to the designated retirement systems, the
Comptroller and Treasurer shall continue to make such transfers
based on fiscal year 2005 payments until the entire amount on
deposit reserved has been transferred.
    (d) All amounts deposited into the Pension Contribution
Fund, other than the amounts reserved for the transfers under
subsection (c), shall be appropriated to the designated
retirement systems to reduce their actuarial reserve
deficiencies. The amount of the appropriation to each
designated retirement system shall constitute a portion of the
total appropriation under this subsection that is the same as
that retirement system's portion of the total actuarial reserve
deficiency of the systems, as most recently determined by the
Governor's Office of Management and Budget Bureau of the Budget
under Section 8.12 of the State Finance Act.
    Within 15 days after any Bond proceeds in excess of the
amounts initially reserved under subsection (c) are deposited
into the Pension Contribution Fund, the Governor's Office of
Management and Budget Bureau of the Budget shall (i) allocate
those proceeds among the designated retirement systems in
proportion to their respective actuarial reserve deficiencies,
as most recently determined under Section 8.12 of the State
Finance Act, and (ii) certify those allocations to the
designated retirement systems and the Comptroller.
    Upon receiving certification of an allocation under this
subsection, a designated retirement system shall submit to the
Comptroller a voucher for the amount of its allocation. The
voucher shall be paid out of the amount appropriated to that
designated retirement system from the Pension Contribution
Fund pursuant to this subsection.
(Source: P.A. 93-2, eff. 4-7-03; revised 8-23-03.)
 
    Section 15. The Illinois Pension Code is amended by
changing Sections 2-134, 14-131, 16-158, 15-165, and 18-140 as
follows:
 
    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
    Sec. 2-134. To certify required State contributions and
submit vouchers.
    (a) The Board shall certify to the Governor on or before
November 15 of each year the amount of the required State
contribution to the System for the next fiscal year. The
certification shall include a copy of the actuarial
recommendations upon which it is based.
    On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
    (b) Beginning in State fiscal year 1996, on or as soon as
possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). From the effective date of this amendatory Act of the 93rd
General Assembly through June 30, 2004, the Board shall not
submit vouchers for the remainder of fiscal year 2004 in excess
of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (d) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year. If in
any month the amount remaining unexpended from all other
appropriations to the System for the applicable fiscal year
(including the appropriations to the System under Section 8.12
of the State Finance Act and Section 1 of the State Pension
Funds Continuing Appropriation Act) is less than the amount
lawfully vouchered under this Section, the difference shall be
paid from the General Revenue Fund under the continuing
appropriation authority provided in Section 1.1 of the State
Pension Funds Continuing Appropriation Act.
    (c) The full amount of any annual appropriation for the
System for State fiscal year 1995 shall be transferred and made
available to the System at the beginning of that fiscal year at
the request of the Board. Any excess funds remaining at the end
of any fiscal year from appropriations shall be retained by the
System as a general reserve to meet the System's accrued
liabilities.
(Source: P.A. 93-2, eff. 4-7-03.)
 
    (40 ILCS 5/14-131)   (from Ch. 108 1/2, par. 14-131)
    Sec. 14-131. Contributions by State.
    (a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering
the System on a 90% funded basis in accordance with actuarial
recommendations.
    For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that
are picked up or otherwise paid by the State or a department on
behalf of the employee.
    (b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board,
using the formula in subsection (e).
    The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that fiscal
year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act and
Section 1 of the State Pension Funds Continuing Appropriation
Act, if any, for the fiscal year ending on the June 30
immediately preceding the applicable November 15 certification
deadline), the estimated payroll (including all forms of
compensation) for personal services rendered by eligible
employees, and the recommendations of the actuary.
    For the purposes of this Section and Section 14.1 of the
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may elect
to participate in the System but have not so elected, persons
who are serving a qualifying period that is required for
participation, and annuitants employed by a department as
described in subdivision (a)(1) or (a)(2) of Section 14-111.
    (c) Contributions shall be made by the several departments
for each pay period by warrants drawn by the State Comptroller
against their respective funds or appropriations based upon
vouchers stating the amount to be so contributed. These amounts
shall be based on the full rate certified by the Board under
Section 14-135.08 for that fiscal year. From the effective date
of this amendatory Act of the 93rd General Assembly through the
payment of the final payroll from fiscal year 2004
appropriations, the several departments shall not make
contributions for the remainder of fiscal year 2004 but shall
instead make payments as required under subsection (a-1) of
Section 14.1 of the State Finance Act. The several departments
shall resume those contributions at the commencement of fiscal
year 2005.
    (d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid by
the State. From the effective date of this amendatory Act of
the 93rd General Assembly through the payment of the final
payroll from fiscal year 2004 appropriations, the department or
other employer shall not pay contributions for the remainder of
fiscal year 2004 but shall instead make payments as required
under subsection (a-1) of Section 14.1 of the State Finance
Act. The department or other employer shall resume payment of
contributions at the commencement of fiscal year 2005.
    (e) For State fiscal years 2011 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 2010, 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; except that (i) for State
fiscal year 1998, for all purposes of this Code and any other
law of this State, the certified percentage of the applicable
employee payroll shall be 5.052% for employees earning eligible
creditable service under Section 14-110 and 6.500% for all
other employees, notwithstanding any contrary certification
made under Section 14-135.08 before the effective date of this
amendatory Act of 1997, and (ii) in the following specified
State fiscal years, the State contribution to the System shall
not be less than the following indicated percentages of the
applicable employee payroll, even if the indicated percentage
will produce a State contribution in excess of the amount
otherwise required under this subsection and subsection (a):
9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
2002; 10.6% in FY 2003; and 10.8% in FY 2004.
    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.
    Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and each
fiscal year thereafter, as calculated under this Section and
certified under Section 14-135.08, 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 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.
    (f) After the submission of all payments for eligible
employees from personal services line items in fiscal year 2004
have been made, the Comptroller shall provide to the System a
certification of the sum of all fiscal year 2004 expenditures
for personal services that would have been covered by payments
to the System under this Section if the provisions of this
amendatory Act of the 93rd General Assembly had not been
enacted. Upon receipt of the certification, the System shall
determine the amount due to the System based on the full rate
certified by the Board under Section 14-135.08 for fiscal year
2004 in order to meet the State's obligation under this
Section. The System shall compare this amount due to the amount
received by the System in fiscal year 2004 through payments
under this Section and under Section 6z-61 of the State Finance
Act. If the amount due is more than the amount received, the
difference shall be termed the "Fiscal Year 2004 Shortfall" for
purposes of this Section, and the Fiscal Year 2004 Shortfall
shall be satisfied under Section 1.2 of the State Pension Funds
Continuing Appropriation Act. If the amount due is less than
the amount received, the difference shall be termed the "Fiscal
Year 2004 Overpayment" for purposes of this Section, and the
Fiscal Year 2004 Overpayment shall be repaid by the System to
the Pension Contribution Fund as soon as practicable after the
certification.
(Source: P.A. 93-2, eff. 4-7-03.)
 
    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
    Sec. 16-158. Contributions by State and other employing
units.
    (a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, 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
(b-3).
    (a-1) Annually, on or before November 15, the Board shall
certify to the Governor the amount of the required State
contribution for the coming fiscal year. The certification
shall include a copy of the actuarial recommendations upon
which it is based.
    On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
    (b) Through State fiscal year 1995, the State contributions
shall be paid to the System in accordance with Section 18-7 of
the School Code.
    (b-1) Beginning in State fiscal year 1996, on the 15th day
of each month, or as soon thereafter as may be practicable, the
Board shall submit vouchers for payment of State contributions
to the System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a-1). From the effective date of this amendatory Act of the
93rd General Assembly through June 30, 2004, the Board shall
not submit vouchers for the remainder of fiscal year 2004 in
excess of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (a) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year.
    If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
    (b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
    (b-3) For State fiscal years 2011 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 2010, 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; except that in the
following specified State fiscal years, the State contribution
to the System shall not be less than the following indicated
percentages of the applicable employee payroll, even if the
indicated percentage will produce a State contribution in
excess of the amount otherwise required under this subsection
and subsection (a), and notwithstanding any contrary
certification made under subsection (a-1) before the effective
date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
2003; and 13.56% in FY 2004.
    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.
    Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and each
fiscal year thereafter, as calculated under this Section and
certified under subsection (a-1), 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 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.
    (c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and all
expenses in connection with the administration and operation
thereof, are obligations of the State.
    If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs based
upon that service, as determined by the System. Employer
contributions, based on salary paid to members from federal
funds, may be forwarded by the distributing agency of the State
of Illinois to the System prior to allocation, in an amount
determined in accordance with guidelines established by such
agency and the System.
    (d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
    However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
    (e) Beginning July 1, 1998, every employer of a teacher
shall pay to the System an employer contribution computed as
follows:
        (1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
        (2) Beginning July 1, 1999 and thereafter, the employer
contribution shall be equal to 0.58% of each teacher's
salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
    These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from this amendatory Act of 1998.
    Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
    The additional 1% employee contribution required under
Section 16-152 by this amendatory Act of 1998 is the
responsibility of the teacher and not the teacher's employer,
unless the employer agrees, through collective bargaining or
otherwise, to make the contribution on behalf of the teacher.
    If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(Source: P.A. 92-505, eff. 12-20-01; 93-2, eff. 4-7-03.)
 
    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
    Sec. 15-165. To certify amounts and submit vouchers.
    (a) The Board shall certify to the Governor on or before
November 15 of each year the appropriation required from State
funds for the purposes of this System for the following fiscal
year. The certification shall include a copy of the actuarial
recommendations upon which it is based.
    On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
    (b) The Board shall certify to the State Comptroller or
employer, as the case may be, from time to time, by its
president and secretary, with its seal attached, the amounts
payable to the System from the various funds.
    (c) Beginning in State fiscal year 1996, on or as soon as
possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). From the effective date of this amendatory Act of the 93rd
General Assembly through June 30, 2004, the Board shall not
submit vouchers for the remainder of fiscal year 2004 in excess
of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (b) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year.
    If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this Section, the difference
shall be paid from the General Revenue Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
    (d) So long as the payments received are the full amount
lawfully vouchered under this Section, payments received by the
System under this Section shall be applied first toward the
employer contribution to the self-managed plan established
under Section 15-158.2. Payments shall be applied second toward
the employer's portion of the normal costs of the System, as
defined in subsection (f) of Section 15-155. The balance shall
be applied toward the unfunded actuarial liabilities of the
System.
    (e) In the event that the System does not receive, as a
result of legislative enactment or otherwise, payments
sufficient to fully fund the employer contribution to the
self-managed plan established under Section 15-158.2 and to
fully fund that portion of the employer's portion of the normal
costs of the System, as calculated in accordance with Section
15-155(a-1), then any payments received shall be applied
proportionately to the optional retirement program established
under Section 15-158.2 and to the employer's portion of the
normal costs of the System, as calculated in accordance with
Section 15-155(a-1).
(Source: P.A. 93-2, eff. 4-7-03.)
 
    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
    Sec. 18-140. To certify required State contributions and
submit vouchers.
    (a) The Board shall certify to the Governor, on or before
November 15 of each year, the amount of the required State
contribution to the System for the following fiscal year. The
certification shall include a copy of the actuarial
recommendations upon which it is based.
    On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
    (b) Beginning in State fiscal year 1996, on or as soon as
possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). From the effective date of this amendatory Act of the 93rd
General Assembly through June 30, 2004, the Board shall not
submit vouchers for the remainder of fiscal year 2004 in excess
of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (c) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year.
    If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this Section, the difference
shall be paid from the General Revenue Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(Source: P.A. 93-2, eff. 4-7-03.)
 
    Section 20. The State Pension Funds Continuing
Appropriation Act is amended by changing Section 1.2 as
follows:
 
    (40 ILCS 15/1.2)
    Sec. 1.2. Appropriations for the State Employees'
Retirement System.
    (a) From each fund from which an amount is appropriated for
personal services to a department or other employer under
Article 14 of the Illinois Pension Code, there is hereby
appropriated to that department or other employer, on a
continuing annual basis for each State fiscal year, an
additional amount equal to the amount, if any, by which (1) an
amount equal to the percentage of the personal services line
item for that department or employer from that fund for that
fiscal year that the Board of Trustees of the State Employees'
Retirement System of Illinois has certified under Section
14-135.08 of the Illinois Pension Code to be necessary to meet
the State's obligation under Section 14-131 of the Illinois
Pension Code for that fiscal year, exceeds (2) the amounts
otherwise appropriated to that department or employer from that
fund for State contributions to the State Employees' Retirement
System for that fiscal year. From the effective date of this
amendatory Act of the 93rd General Assembly through the final
payment from a department or employer's personal services line
item for fiscal year 2004, payments to the State Employees'
Retirement System that otherwise would have been made under
this subsection (a) shall be governed by the provisions in
subsection (a-1).
    (a-1) If a Fiscal Year 2004 Shortfall is certified under
subsection (f) of Section 14-131 of the Illinois Pension Code,
there is hereby appropriated to the State Employees' Retirement
System of Illinois on a continuing basis from the General
Revenue Fund an additional aggregate amount equal to the Fiscal
Year 2004 Shortfall.
    (b) The continuing appropriations provided for by this
Section shall first be available in State fiscal year 1996.
(Source: P.A. 88-593, eff. 8-22-94.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 03/05/04