State of Illinois
Public Acts
92nd General Assembly

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 92-0505

SB1174 Enrolled                                LRB9207962TAtm

    AN ACT concerning government employee benefits.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  State Employees Group Insurance Act of
1971 is amended by changing Sections 6.5 and 6.6 as follows:

    (5 ILCS 375/6.5)
    (Section scheduled to be repealed on July 1, 2004)
    Sec. 6.5. Health benefits for TRS benefit recipients  and
TRS dependent beneficiaries.
    (a)  Purpose.   It  is the purpose of this amendatory Act
of 1995 to transfer the  administration  of  the  program  of
health  benefits established for benefit recipients and their
dependent beneficiaries under  Article  16  of  the  Illinois
Pension   Code   to  the  Department  of  Central  Management
Services.
    (b)  Transition provisions.  The Board of Trustees of the
Teachers' Retirement System shall continue to administer  the
health  benefit  program  established under Article 16 of the
Illinois Pension Code through December 31,  1995.   Beginning
January   1,  1996,  the  Department  of  Central  Management
Services shall be responsible for administering a program  of
health  benefits for TRS benefit recipients and TRS dependent
beneficiaries under this Section.  The Department of  Central
Management Services and the Teachers' Retirement System shall
cooperate   in  this  endeavor  and  shall  coordinate  their
activities  so  as  to  ensure  a   smooth   transition   and
uninterrupted health benefit coverage.
    (c)  Eligibility.   All  persons who were enrolled in the
Article 16 program at the  time  of  the  transfer  shall  be
eligible to participate in the program established under this
Section  without  any  interruption  or  delay in coverage or
limitation   as   to   pre-existing    medical    conditions.
Eligibility   to  participate  shall  be  determined  by  the
Teachers' Retirement System.  Eligibility  information  shall
be  communicated  to  the  Department  of  Central Management
Services in a format acceptable to the Department.
    (d)  Coverage.  The level  of  health  benefits  provided
under  this Section shall be similar to the level of benefits
provided by the program previously established under  Article
16 of the Illinois Pension Code.
    Group  life  insurance  benefits  are not included in the
benefits to be provided to TRS  benefit  recipients  and  TRS
dependent beneficiaries under this Act.
    The  program  of  health  benefits under this Section may
include any or all of the benefit limitations, including  but
not  limited  to a reduction in benefits based on eligibility
for  federal  medicare  benefits,  that  are  provided  under
subsection (a) of Section 6 of  this  Act  for  other  health
benefit programs under this Act.
    (e)  Insurance  rates  and  premiums.  The Director shall
determine the insurance rates and premiums  for  TRS  benefit
recipients and TRS dependent beneficiaries, and shall present
to  the Teachers' Retirement System of the State of Illinois,
by  April  15  of  each  calendar  year,   the   rate-setting
methodology  (including but not limited to utilization levels
and costs) used to determine the amount of  the  health  care
premiums.
    For  Fiscal  Year 1996, the premium shall be equal to the
premium actually charged in Fiscal Year 1995;. in  subsequent
years,  the  premium  shall  never  be lower than the premium
charged in Fiscal Year  1995.   For  Fiscal  Year  2003,  the
premium shall not exceed 110% of the premium actually charged
in Fiscal Year 2002.  For Fiscal Year 2004, the premium shall
not  exceed  112%  of  the premium actually charged in Fiscal
Year 2003.
    Rates and premiums may  be  based  in  part  on  age  and
eligibility for federal medicare coverage.
    The  cost  of  health benefits under the program shall be
paid as follows:
         (1)  For a TRS benefit recipient selecting a managed
    care program, up to 75% of the total insurance rate shall
    be paid from the Teacher Health Insurance Security Fund.
         (2)  For a TRS benefit recipient selecting the major
    medical  coverage  program,  up  to  50%  of  the   total
    insurance  rate  shall  be  paid  from the Teacher Health
    Insurance Security Fund if  a  managed  care  program  is
    accessible,  as  determined  by  the Teachers' Retirement
    System.
         (3)  For a TRS benefit recipient selecting the major
    medical  coverage  program,  up  to  75%  of  the   total
    insurance  rate  shall  be  paid  from the Teacher Health
    Insurance Security Fund if a managed care program is  not
    accessible,  as  determined  by  the Teachers' Retirement
    System.
         (4)  The balance of the rate of insurance, including
    the entire premium of  any  coverage  for  TRS  dependent
    beneficiaries  that  has  been  elected, shall be paid by
    deductions authorized by the TRS benefit recipient to  be
    withheld  from  his  or  her  monthly  annuity or benefit
    payment from the Teachers' Retirement System; except that
    (i) if the balance of the cost of  coverage  exceeds  the
    amount  of  the  monthly  annuity or benefit payment, the
    difference  shall  be  paid  directly  to  the  Teachers'
    Retirement System by the TRS benefit recipient, and  (ii)
    all  or  part of the balance of the cost of coverage may,
    at the school  board's option, be paid to  the  Teachers'
    Retirement  System  by  the  school  board  of the school
    district from which the TRS benefit recipient retired, in
    accordance with Section 10-22.3b of the School Code.  The
    Teachers' Retirement System shall  promptly  deposit  all
    moneys  withheld  by or paid to it under this subdivision
    (e)(4) into the Teacher Health Insurance  Security  Fund.
    These  moneys  shall  not  be  considered  assets  of the
    Retirement System.
    (f)  Financing.  Beginning July  1,  1995,  all  revenues
arising   from  the  administration  of  the  health  benefit
programs established under Article 16 of the Illinois Pension
Code or this Section shall  be  deposited  into  the  Teacher
Health  Insurance Security Fund, which is hereby created as a
nonappropriated trust fund  to  be  held  outside  the  State
Treasury,   with  the  State  Treasurer  as  custodian.   Any
interest earned on moneys in  the  Teacher  Health  Insurance
Security Fund shall be deposited into the Fund.
    Moneys  in  the  Teacher  Health  Insurance Security Fund
shall be used only to pay the costs  of  the  health  benefit
program  established under this Section, including associated
administrative costs,  and  the  costs  associated  with  the
health  benefit  program  established under Article 16 of the
Illinois  Pension  Code,  as  authorized  in  this   Section.
Beginning  July 1, 1995, the Department of Central Management
Services  may  make  expenditures  from  the  Teacher  Health
Insurance Security Fund for those costs.
    After other funds authorized for the payment of the costs
of the health benefit program established under Article 16 of
the Illinois Pension Code are exhausted and until January  1,
1996  (or  such  later  date  as  may  be  agreed upon by the
Director of Central Management Services and the Secretary  of
the  Teachers'  Retirement  System),  the  Secretary  of  the
Teachers'  Retirement  System  may make expenditures from the
Teacher Health Insurance Security Fund as necessary to pay up
to 75% of the cost of providing health coverage  to  eligible
benefit  recipients  (as  defined  in  Sections  16-153.1 and
16-153.3 of the Illinois Pension Code) who  are  enrolled  in
the  Article  16 health benefit program and to facilitate the
transfer of administration of the health benefit  program  to
the Department of Central Management Services.
    (g)  Contract   for  benefits.   The  Director  shall  by
contract, self-insurance, or  otherwise  make  available  the
program  of  health  benefits  for TRS benefit recipients and
their TRS dependent beneficiaries that  is  provided  for  in
this  Section.   The  contract  or  other arrangement for the
provision of these health benefits shall be on  terms  deemed
by  the  Director  to be in the best interest of the State of
Illinois and the TRS benefit recipients  based  on,  but  not
limited  to,  such  criteria  as administrative cost, service
capabilities of the carrier  or  other  contractor,  and  the
costs of the benefits.
    (h)  Continuation  and termination of program.  It is the
intention of the General Assembly that the program of  health
benefits  provided  under  this  Section  be maintained on an
ongoing, affordable basis through June 30, 2004.  The program
of health benefits provided under this Section is  terminated
on July 1, 2004.
    The  program  of  health  benefits  provided  under  this
Section may be amended by the State and is not intended to be
a  pension  or retirement benefit subject to protection under
Article XIII, Section 5 of the Illinois Constitution.
    (i)  Repeal.  This Section is repealed on July 1, 2004.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)

    (5 ILCS 375/6.6)
    (Section scheduled to be repealed on July 1, 2004)
    Sec. 6.6. Contributions to the Teacher  Health  Insurance
Security Fund.
    (a)  Beginning  July  1, 1995, all active contributors of
the Teachers' Retirement System (established under Article 16
of the Illinois Pension Code) who  are  not  employees  of  a
department  as  defined  in  Section 3 of this Act shall make
contributions toward  the  cost  of  annuitant  and  survivor
health   benefits.   These  contributions  shall  be  at  the
following rates: until January  1,  2002,  rate  of  0.5%  of
salary; beginning January 1, 2002, 0.65% of salary; beginning
July 1, 2003, 0.75% of salary.
    These contributions shall be deducted by the employer and
paid  to  the  System  as service agent for the Department of
Central Management Services.  The System  may  use  the  same
processes  for  collecting the contributions required by this
subsection that it uses  to  collect  contributions  received
from  school  districts  and  other  covered  employers under
Sections 16-154 and 16-155 of the Illinois Pension Code.
    An employer may agree to pick up or pay the contributions
required under this subsection on behalf of the teacher; such
contributions shall be deemed to have to have  been  paid  by
the teacher.  Beginning January 1, 2002, if the employer does
not  directly  pay the required member contribution, then the
employer shall reduce the member's salary by an amount  equal
to   the   required  contribution  and  shall  then  pay  the
contribution on behalf of the member.  This  reduction  shall
not change the amounts reported as creditable earnings to the
Teachers' Retirement System.
    A  person  who  purchases  optional  service credit under
Article 16 of the Illinois Pension Code for  a  period  after
June  30,  1995  must  also  make  a  contribution under this
subsection for that optional credit, at the rate provided  in
subsection  (a),  based  on  of  0.5%  of  the salary used in
computing the optional service credit, plus interest on  this
employee  contribution.  This contribution shall be collected
by the System as service agent for the Department of  Central
Management  Services.   The  contribution required under this
subsection for the optional service credit must  be  paid  in
full before any annuity based on that credit begins.
    (a-5)  Beginning  January  1,  2002,  every employer of a
teacher (other than an  employer  that  is  a  department  as
defined  in  Section  3  of  this  Act) shall pay an employer
contribution toward the cost of annuitant and survivor health
benefits.  These contributions shall be computed as follows:
         (1)  Beginning January  1,  2002  through  June  30,
    2003, the employer contribution shall be equal to 0.4% of
    each teacher's salary.
         (2)  Beginning    July   1,   2003,   the   employer
    contribution shall be equal to  0.5%  of  each  teacher's
    salary.
    These  contributions shall be paid by the employer to the
System  as  service  agent  for  the  Department  of  Central
Management Services.  The System may use the  same  processes
for  collecting the contributions required by this subsection
that it uses to collect contributions  received  from  school
districts  and  other  covered  employers  under the Illinois
Pension Code.
    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.
    (b)  The  Teachers'  Retirement  System  shall   promptly
deposit all moneys collected under subsections subsection (a)
and  (a-5)  of this Section into the Teacher Health Insurance
Security Fund created in Section 6.5 of this Act.  The moneys
collected under this Section  shall  be  used  only  for  the
purposes  authorized in Section 6.5 of this Act and shall not
be considered  to  be  assets  of  the  Teachers'  Retirement
System.   Contributions  made  under  this  Section  are  not
transferable to other pension funds or retirement systems and
are not refundable upon termination of service.
    (c)  On  or before November 15 of each year, the Board of
Trustees of the Teachers' Retirement System shall certify  to
the  Governor,  the  Director of Central Management Services,
and the State Comptroller its estimate of the total amount of
contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year.  The amount certified shall  be
decreased  or  increased  each  year  by  the amount that the
actual active teacher contributions either fell short  of  or
exceeded  the  estimate  used  by  the  Board  in  making the
certification   for   the   previous   fiscal   year.     The
certification  shall  include  a  detailed explanation of the
methods  and  information  that  the  Board  relied  upon  in
preparing its  estimate.   As  soon  as  possible  after  the
effective  date  of  this  amendatory Act of the 92nd General
Assembly Section, the Board shall recalculate  and  recertify
its  certifications for fiscal years 2002 and 2003 submit its
estimate for fiscal year 1996.
    (d)  Beginning in fiscal year 1996, on the first  day  of
each  month,  or  as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund  to  the  Teacher  Health  Insurance
Security Fund 1/12 of the annual amount appropriated for that
fiscal  year  to  the  State Comptroller for deposit into the
Teacher Health Insurance Security Fund under Section  1.3  of
the State Pension Funds Continuing Appropriation Act.
    (e)  Except  where  otherwise  specified in this Section,
the definitions that apply to  Article  16  of  the  Illinois
Pension Code apply to this Section.
    (f)  This Section is repealed on July 1, 2004.
(Source:  P.A.  89-21,  eff.  6-21-95;  89-25,  eff. 6-21-95;
90-448, eff. 8-16-97.)

    Section  10.   The  Department  of   Central   Management
Services  Law of the Civil Administrative Code of Illinois is
amended by adding Section 405-22 as follows:
    (20 ILCS 405/405-22 new)
    (Section scheduled to be repealed on July 1, 2002)
    Sec.  405-22.  Teacher  Health  Insurance  Funding   Task
Force.
    (a)  A  Teacher  Health  Insurance  Funding Task Force is
hereby created within the Department  of  Central  Management
Services.   The  Task  Force  shall  consist  of  23  members
appointed as follows:
         (1)  Three members appointed by the President of the
    Senate.
         (2)  Three  members appointed by the Minority Leader
    of the Senate.
         (3)  Three members appointed by the Speaker  of  the
    House of Representatives.
         (4)  Three  members appointed by the Minority Leader
    of the House of Representatives.
         (5)  One member appointed by  the  Illinois  Retired
    Teachers Association.
         (6)  One  member appointed by the Illinois Education
    Association.
         (7)  One member appointed by the Illinois Federation
    of Teachers.
         (8)  One   member   appointed   by   the    Illinois
    Association of School Boards.
         (9)  One    member   appointed   by   the   Illinois
    Association of School Administrators.
         (10)  One   member   appointed   by   the   Illinois
    Association of School Business Officials.
         (11)  Three  members  appointed  by  the   Governor,
    including   one  who  has  experience  in  the  insurance
    industry.
         (12)  The Director of Central  Management  Services,
    ex officio, or a person designated by the Director.
         (13)  The   Executive   Director  of  the  Teachers'
    Retirement System of Illinois, ex officio,  or  a  person
    designated by the Executive Director.
    Entities  making appointments shall do so by filing their
respective designations, in writing,  with  the  Director  of
Central Management Services.
    One  of the members appointed by the Governor shall serve
as the Chair of the Task Force.
    (b)  The Task Force shall convene on December 1, 2001 and
thereafter meet at the call of the  chair.   Members  of  the
Task Force shall not be compensated for their service.
    (c)  The  Task  Force  shall  study  the  funding  of the
Teacher Health Insurance Security Fund and the health benefit
programs that receive funding from that Fund.
    The  Task   Force   shall   report   its   findings   and
recommendations  to  the Governor and the General Assembly on
or before April 1, 2002.
    (d)  The Task Force is  abolished  and  this  Section  is
repealed on July 1, 2002.

    Section 15.  The State Finance Act is amended by changing
Section 8g as follows:

    (30 ILCS 105/8g)
    Sec. 8g. Transfers from General Revenue Fund.
    (a)  In  addition  to  any  other  transfers  that may be
provided for by law, as soon as may be  practical  after  the
effective  date  of  this  amendatory Act of the 91st General
Assembly, the State Comptroller shall direct  and  the  State
Treasurer  shall  transfer  the  sum  of $10,000,000 from the
General Revenue Fund to the Motor Vehicle License Plate  Fund
created by Senate Bill 1028 of the 91st General Assembly.
    (b)  In  addition  to  any  other  transfers  that may be
provided for by law, as soon as may be  practical  after  the
effective  date  of  this  amendatory Act of the 91st General
Assembly, the State Comptroller shall direct  and  the  State
Treasurer  shall  transfer  the  sum  of $25,000,000 from the
General Revenue Fund to the Fund for Illinois' Future created
by Senate Bill 1066 of the 91st General Assembly.
    (c)  In addition to  any  other  transfers  that  may  be
provided  for  by  law,  on  August  30 of each fiscal year's
license period, the Illinois Liquor Control Commission  shall
direct  and  the  State Comptroller and State Treasurer shall
transfer  from  the  General  Revenue  Fund  to   the   Youth
Alcoholism  and  Substance  Abuse  Prevention  Fund an amount
equal to the number of retail liquor licenses issued for that
fiscal year multiplied by $50.
    (d)  The payments to programs required  under  subsection
(d)  of Section 28.1 of the Horse Racing Act of 1975 shall be
made, pursuant  to  appropriation,  from  the  special  funds
referred  to in the statutes cited in that subsection, rather
than directly from the General Revenue Fund.
    Beginning January 1, 2000,  on  the  first  day  of  each
month,  or  as soon as may be practical thereafter, the State
Comptroller  shall  direct  and  the  State  Treasurer  shall
transfer from the General Revenue Fund to each of the special
funds from which  payments  are  to  be  made  under  Section
28.1(d)  of  the  Horse Racing Act of 1975 an amount equal to
1/12 of the annual amount required for  those  payments  from
that  special  fund, which annual amount shall not exceed the
annual amount for those payments from that special  fund  for
the calendar year 1998.  The special funds to which transfers
shall  be made under this subsection (d) include, but are not
necessarily limited to, the Agricultural  Premium  Fund;  the
Metropolitan  Exposition Auditorium and Office Building Fund;
the Fair and Exposition Fund; the Standardbred Breeders Fund;
the Thoroughbred Breeders Fund; and  the  Illinois  Veterans'
Rehabilitation Fund.
    (e)  In  addition  to  any  other  transfers  that may be
provided for by law, as soon as may be  practical  after  the
effective  date  of  this  amendatory Act of the 91st General
Assembly, but in no event later than June 30, 2000, the State
Comptroller  shall  direct  and  the  State  Treasurer  shall
transfer the sum of $15,000,000 from the General Revenue Fund
to the Fund for Illinois' Future.
    (f)  In addition to  any  other  transfers  that  may  be
provided  for  by  law, as soon as may be practical after the
effective date of this amendatory Act  of  the  91st  General
Assembly, but in no event later than June 30, 2000, the State
Comptroller  shall  direct  and  the  State  Treasurer  shall
transfer the sum of $70,000,000 from the General Revenue Fund
to the Long-Term Care Provider Fund.
    (f-1)  In  fiscal  year  2002,  in  addition to any other
transfers that may be provided for by law, at  the  direction
of  and  upon  notification  from  the  Governor,  the  State
Comptroller  shall  direct  and  the  State  Treasurer  shall
transfer  amounts  not exceeding a total of $160,000,000 from
the General Revenue Fund to the Long-Term Care Provider Fund.
    (g)  In addition to  any  other  transfers  that  may  be
provided  for  by law, on July 1, 2001, or as soon thereafter
as may be practical, the State Comptroller shall  direct  and
the State Treasurer shall transfer the sum of $1,200,000 from
the General Revenue Fund to the Violence Prevention Fund.
    (h)  In  each  of fiscal years 2002 through 2007, but not
thereafter, in addition to any other transfers  that  may  be
provided  for  by law, the State Comptroller shall direct and
the  State  Treasurer  shall  transfer  $5,000,000  from  the
General Revenue Fund to the Tourism Promotion Fund.
    (i)  On or after July 1, 2001 and until May 1,  2002,  in
addition  to  any other transfers that may be provided for by
law, at the direction  of  and  upon  notification  from  the
Governor,  the  State  Comptroller shall direct and the State
Treasurer shall transfer amounts not  exceeding  a  total  of
$80,000,000  from  the  General  Revenue  Fund to the Tobacco
Settlement Recovery Fund.  Any amounts so  transferred  shall
be  re-transferred  by  the  State  Comptroller and the State
Treasurer from the Tobacco Settlement Recovery  Fund  to  the
General   Revenue   Fund   at   the  direction  of  and  upon
notification from the Governor, but in any event on or before
June 30, 2002.
    (j)  On or after July 1, 2001 and no later than June  30,
2002, in addition to any other transfers that may be provided
for  by  law,  at the direction of and upon notification from
the Governor, the State  Comptroller  shall  direct  and  the
State  Treasurer  shall  transfer  amounts  not to exceed the
following sums into the Statistical Services Revolving Fund:
    From the General Revenue Fund...............   $8,450,000
    From the Public Utility Fund................    1,700,000
    From the Transportation Regulatory Fund.....    2,650,000
    From the Title III Social Security and
      Employment Fund...........................    3,700,000
    From the Professions Indirect Cost Fund.....    4,050,000
    From the Underground Storage Tank Fund......      550,000
    From the Agricultural Premium Fund..........      750,000
    From the State Pensions Fund................      200,000
    From the Road Fund..........................    2,000,000
    From the Health Facilities
      Planning Fund.............................    1,000,000
    From the Savings and Residential Finance
      Regulatory Fund...........................      130,800
    From the Appraisal Administration Fund......       28,600
    From the Pawnbroker Regulation Fund.........        3,600
    From the Auction Regulation
      Administration Fund.......................       35,800
    From the Bank and Trust Company Fund........      634,800
    From the Real Estate License
      Administration Fund.......................      313,600
    (k)  In addition to  any  other  transfers  that  may  be
provided  for  by  law, as soon as may be practical after the
effective date of this amendatory Act  of  the  92nd  General
Assembly,  the  State  Comptroller shall direct and the State
Treasurer shall transfer  the  sum  of  $2,000,000  from  the
General   Revenue  Fund  to  the  Teachers  Health  Insurance
Security Fund.
    (k-1)  In addition to any other  transfers  that  may  be
provided  for  by  law, on July 1, 2002, or as soon as may be
practical thereafter, the State Comptroller shall direct  and
the State Treasurer shall transfer the sum of $2,000,000 from
the  General  Revenue  Fund  to the Teachers Health Insurance
Security Fund.
    (k-2)  In addition to any other  transfers  that  may  be
provided  for  by  law, on July 1, 2003, or as soon as may be
practical thereafter, the State Comptroller shall direct  and
the State Treasurer shall transfer the sum of $2,000,000 from
the  General  Revenue  Fund  to the Teachers Health Insurance
Security Fund.
(Source: P.A.  91-25,  eff.  6-9-99;  91-704,  eff.  5-17-00;
92-11, eff. 6-11-01.)

    Section  20.   The  Illinois  Pension  Code is amended by
changing Section 16-158 as follows:

    (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.
    (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).  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; 13.56% in  FY  2004;  14.25%  in  FY
2005;  14.95%  in  FY  2006;  15.65% in FY 2007; 16.34% in FY
2008; 17.04% in FY 2009; and 17.74% in FY 2010.
    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.
    (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. 90-582, eff. 5-27-98.)

    Section 90.  The State Mandates Act is amended by  adding
Section 8.26 as follows:

    (30 ILCS 805/8.26 new)
    Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is  required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of the 92nd General Assembly.

    Section  99.  Effective date.  This Act takes effect upon
becoming law.
    Passed in the General Assembly November 29, 2001.
    Approved December 20, 2001.
    Effective December 20, 2001.

[ Top ]