Rep. Robert Martwick

Filed: 5/8/2018

 

 


 

 


 
10000SB2954ham001LRB100 17269 MJP 39792 a

1
AMENDMENT TO SENATE BILL 2954

2    AMENDMENT NO. ______. Amend Senate Bill 2954 on page 1,
3line 5, by replacing "Section 15-155" with "Sections 15-155 and
416-158"; and
 
5on page 17, immediately below line 15, by inserting the
6following:
 
7    "(40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
8    Sec. 16-158. Contributions by State and other employing
9units.
10    (a) The State shall make contributions to the System by
11means of appropriations from the Common School Fund and other
12State funds of amounts which, together with other employer
13contributions, employee contributions, investment income, and
14other income, will be sufficient to meet the cost of
15maintaining and administering the System on a 90% funded basis
16in accordance with actuarial recommendations.

 

 

10000SB2954ham001- 2 -LRB100 17269 MJP 39792 a

1    The Board shall determine the amount of State contributions
2required for each fiscal year on the basis of the actuarial
3tables and other assumptions adopted by the Board and the
4recommendations of the actuary, using the formula in subsection
5(b-3).
6    (a-1) Annually, on or before November 15 until November 15,
72011, the Board shall certify to the Governor the amount of the
8required State contribution for the coming fiscal year. The
9certification under this subsection (a-1) shall include a copy
10of the actuarial recommendations upon which it is based and
11shall specifically identify the System's projected State
12normal cost for that fiscal year.
13    On or before May 1, 2004, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2005, taking
16into account the amounts appropriated to and received by the
17System under subsection (d) of Section 7.2 of the General
18Obligation Bond Act.
19    On or before July 1, 2005, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2006, taking
22into account the changes in required State contributions made
23by Public Act 94-4 this amendatory Act of the 94th General
24Assembly.
25    On or before April 1, 2011, the Board shall recalculate and
26recertify to the Governor the amount of the required State

 

 

10000SB2954ham001- 3 -LRB100 17269 MJP 39792 a

1contribution to the System for State fiscal year 2011, applying
2the changes made by Public Act 96-889 to the System's assets
3and liabilities as of June 30, 2009 as though Public Act 96-889
4was approved on that date.
5    (a-5) On or before November 1 of each year, beginning
6November 1, 2012, the Board shall submit to the State Actuary,
7the Governor, and the General Assembly a proposed certification
8of the amount of the required State contribution to the System
9for the next fiscal year, along with all of the actuarial
10assumptions, calculations, and data upon which that proposed
11certification is based. On or before January 1 of each year,
12beginning January 1, 2013, the State Actuary shall issue a
13preliminary report concerning the proposed certification and
14identifying, if necessary, recommended changes in actuarial
15assumptions that the Board must consider before finalizing its
16certification of the required State contributions. On or before
17January 15, 2013 and each January 15 thereafter, the Board
18shall certify to the Governor and the General Assembly the
19amount of the required State contribution for the next fiscal
20year. The Board's certification must note any deviations from
21the State Actuary's recommended changes, the reason or reasons
22for not following the State Actuary's recommended changes, and
23the fiscal impact of not following the State Actuary's
24recommended changes on the required State contribution.
25    (a-10) By November 1, 2017, the Board shall recalculate and
26recertify to the State Actuary, the Governor, and the General

 

 

10000SB2954ham001- 4 -LRB100 17269 MJP 39792 a

1Assembly the amount of the State contribution to the System for
2State fiscal year 2018, taking into account the changes in
3required State contributions made by Public Act 100-23 this
4amendatory Act of the 100th General Assembly. The State Actuary
5shall review the assumptions and valuations underlying the
6Board's revised certification and issue a preliminary report
7concerning the proposed recertification and identifying, if
8necessary, recommended changes in actuarial assumptions that
9the Board must consider before finalizing its certification of
10the required State contributions. The Board's final
11certification must note any deviations from the State Actuary's
12recommended changes, the reason or reasons for not following
13the State Actuary's recommended changes, and the fiscal impact
14of not following the State Actuary's recommended changes on the
15required State contribution.
16    (b) Through State fiscal year 1995, the State contributions
17shall be paid to the System in accordance with Section 18-7 of
18the School Code.
19    (b-1) Beginning in State fiscal year 1996, on the 15th day
20of each month, or as soon thereafter as may be practicable, the
21Board shall submit vouchers for payment of State contributions
22to the System, in a total monthly amount of one-twelfth of the
23required annual State contribution certified under subsection
24(a-1). From March 5, 2004 (the effective date of Public Act
2593-665) this amendatory Act of the 93rd General Assembly
26through June 30, 2004, the Board shall not submit vouchers for

 

 

10000SB2954ham001- 5 -LRB100 17269 MJP 39792 a

1the remainder of fiscal year 2004 in excess of the fiscal year
22004 certified contribution amount determined under this
3Section after taking into consideration the transfer to the
4System under subsection (a) of Section 6z-61 of the State
5Finance Act. These vouchers shall be paid by the State
6Comptroller and Treasurer by warrants drawn on the funds
7appropriated to the System for that fiscal year.
8    If in any month the amount remaining unexpended from all
9other appropriations to the System for the applicable fiscal
10year (including the appropriations to the System under Section
118.12 of the State Finance Act and Section 1 of the State
12Pension Funds Continuing Appropriation Act) is less than the
13amount lawfully vouchered under this subsection, the
14difference shall be paid from the Common School Fund under the
15continuing appropriation authority provided in Section 1.1 of
16the State Pension Funds Continuing Appropriation Act.
17    (b-2) Allocations from the Common School Fund apportioned
18to school districts not coming under this System shall not be
19diminished or affected by the provisions of this Article.
20    (b-3) For State fiscal years 2012 through 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of
24the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the
26required State contribution shall be calculated each year as a

 

 

10000SB2954ham001- 6 -LRB100 17269 MJP 39792 a

1level percentage of payroll over the years remaining to and
2including fiscal year 2045 and shall be determined under the
3projected unit credit actuarial cost method.
4    For each of State fiscal years 2018, 2019, and 2020, the
5State shall make an additional contribution to the System equal
6to 2% of the total payroll of each employee who is deemed to
7have elected the benefits under Section 1-161 or who has made
8the election under subsection (c) of Section 1-161.
9    A change in an actuarial or investment assumption that
10increases or decreases the required State contribution and
11first applies in State fiscal year 2018 or thereafter shall be
12implemented in equal annual amounts over a 5-year period
13beginning in the State fiscal year in which the actuarial
14change first applies to the required State contribution.
15    A change in an actuarial or investment assumption that
16increases or decreases the required State contribution and
17first applied to the State contribution in fiscal year 2014,
182015, 2016, or 2017 shall be implemented:
19        (i) as already applied in State fiscal years before
20    2018; and
21        (ii) in the portion of the 5-year period beginning in
22    the State fiscal year in which the actuarial change first
23    applied that occurs in State fiscal year 2018 or
24    thereafter, by calculating the change in equal annual
25    amounts over that 5-year period and then implementing it at
26    the resulting annual rate in each of the remaining fiscal

 

 

10000SB2954ham001- 7 -LRB100 17269 MJP 39792 a

1    years in that 5-year period.
2    For State fiscal years 1996 through 2005, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5so that by State fiscal year 2011, the State is contributing at
6the rate required under this Section; except that in the
7following specified State fiscal years, the State contribution
8to the System shall not be less than the following indicated
9percentages of the applicable employee payroll, even if the
10indicated percentage will produce a State contribution in
11excess of the amount otherwise required under this subsection
12and subsection (a), and notwithstanding any contrary
13certification made under subsection (a-1) before May 27, 1998
14(the effective date of Public Act 90-582) this amendatory Act
15of 1998: 10.02% in FY 1999; 10.77% in FY 2000; 11.47% in FY
162001; 12.16% in FY 2002; 12.86% in FY 2003; and 13.56% in FY
172004.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2006 is
20$534,627,700.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2007 is
23$738,014,500.
24    For each of State fiscal years 2008 through 2009, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

10000SB2954ham001- 8 -LRB100 17269 MJP 39792 a

1from the required State contribution for State fiscal year
22007, so that by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2010 is
6$2,089,268,000 and shall be made from the proceeds of bonds
7sold in fiscal year 2010 pursuant to Section 7.2 of the General
8Obligation Bond Act, less (i) the pro rata share of bond sale
9expenses determined by the System's share of total bond
10proceeds, (ii) any amounts received from the Common School Fund
11in fiscal year 2010, and (iii) any reduction in bond proceeds
12due to the issuance of discounted bonds, if applicable.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2011 is
15the amount recertified by the System on or before April 1, 2011
16pursuant to subsection (a-1) of this Section and shall be made
17from the proceeds of bonds sold in fiscal year 2011 pursuant to
18Section 7.2 of the General Obligation Bond Act, less (i) the
19pro rata share of bond sale expenses determined by the System's
20share of total bond proceeds, (ii) any amounts received from
21the Common School Fund in fiscal year 2011, and (iii) any
22reduction in bond proceeds due to the issuance of discounted
23bonds, if applicable. This amount shall include, in addition to
24the amount certified by the System, an amount necessary to meet
25employer contributions required by the State as an employer
26under paragraph (e) of this Section, which may also be used by

 

 

10000SB2954ham001- 9 -LRB100 17269 MJP 39792 a

1the System for contributions required by paragraph (a) of
2Section 16-127.
3    Beginning in State fiscal year 2046, the minimum State
4contribution for each fiscal year shall be the amount needed to
5maintain the total assets of the System at 90% of the total
6actuarial liabilities of the System.
7    Amounts received by the System pursuant to Section 25 of
8the Budget Stabilization Act or Section 8.12 of the State
9Finance Act in any fiscal year do not reduce and do not
10constitute payment of any portion of the minimum State
11contribution required under this Article in that fiscal year.
12Such amounts shall not reduce, and shall not be included in the
13calculation of, the required State contributions under this
14Article in any future year until the System has reached a
15funding ratio of at least 90%. A reference in this Article to
16the "required State contribution" or any substantially similar
17term does not include or apply to any amounts payable to the
18System under Section 25 of the Budget Stabilization Act.
19    Notwithstanding any other provision of this Section, the
20required State contribution for State fiscal year 2005 and for
21fiscal year 2008 and each fiscal year thereafter, as calculated
22under this Section and certified under subsection (a-1), shall
23not exceed an amount equal to (i) the amount of the required
24State contribution that would have been calculated under this
25Section for that fiscal year if the System had not received any
26payments under subsection (d) of Section 7.2 of the General

 

 

10000SB2954ham001- 10 -LRB100 17269 MJP 39792 a

1Obligation Bond Act, minus (ii) the portion of the State's
2total debt service payments for that fiscal year on the bonds
3issued in fiscal year 2003 for the purposes of that Section
47.2, as determined and certified by the Comptroller, that is
5the same as the System's portion of the total moneys
6distributed under subsection (d) of Section 7.2 of the General
7Obligation Bond Act. In determining this maximum for State
8fiscal years 2008 through 2010, however, the amount referred to
9in item (i) shall be increased, as a percentage of the
10applicable employee payroll, in equal increments calculated
11from the sum of the required State contribution for State
12fiscal year 2007 plus the applicable portion of the State's
13total debt service payments for fiscal year 2007 on the bonds
14issued in fiscal year 2003 for the purposes of Section 7.2 of
15the General Obligation Bond Act, so that, by State fiscal year
162011, the State is contributing at the rate otherwise required
17under this Section.
18    (b-4) Beginning in fiscal year 2018, each employer under
19this Article shall pay to the System a required contribution
20determined as a percentage of projected payroll and sufficient
21to produce an annual amount equal to:
22        (i) for each of fiscal years 2018, 2019, and 2020, the
23    defined benefit normal cost of the defined benefit plan,
24    less the employee contribution, for each employee of that
25    employer who has elected or who is deemed to have elected
26    the benefits under Section 1-161 or who has made the

 

 

10000SB2954ham001- 11 -LRB100 17269 MJP 39792 a

1    election under subsection (b) of Section 1-161; for fiscal
2    year 2021 and each fiscal year thereafter, the defined
3    benefit normal cost of the defined benefit plan, less the
4    employee contribution, plus 2%, for each employee of that
5    employer who has elected or who is deemed to have elected
6    the benefits under Section 1-161 or who has made the
7    election under subsection (b) of Section 1-161; plus
8        (ii) the amount required for that fiscal year to
9    amortize any unfunded actuarial accrued liability
10    associated with the present value of liabilities
11    attributable to the employer's account under Section
12    16-158.3, determined as a level percentage of payroll over
13    a 30-year rolling amortization period.
14    In determining contributions required under item (i) of
15this subsection, the System shall determine an aggregate rate
16for all employers, expressed as a percentage of projected
17payroll.
18    In determining the contributions required under item (ii)
19of this subsection, the amount shall be computed by the System
20on the basis of the actuarial assumptions and tables used in
21the most recent actuarial valuation of the System that is
22available at the time of the computation.
23    The contributions required under this subsection (b-4)
24shall be paid by an employer concurrently with that employer's
25payroll payment period. The State, as the actual employer of an
26employee, shall make the required contributions under this

 

 

10000SB2954ham001- 12 -LRB100 17269 MJP 39792 a

1subsection.
2    (c) Payment of the required State contributions and of all
3pensions, retirement annuities, death benefits, refunds, and
4other benefits granted under or assumed by this System, and all
5expenses in connection with the administration and operation
6thereof, are obligations of the State.
7    If members are paid from special trust or federal funds
8which are administered by the employing unit, whether school
9district or other unit, the employing unit shall pay to the
10System from such funds the full accruing retirement costs based
11upon that service, which, beginning July 1, 2017, shall be at a
12rate, expressed as a percentage of salary, equal to the total
13employer's normal cost, expressed as a percentage of payroll,
14as determined by the System. Employer contributions, based on
15salary paid to members from federal funds, may be forwarded by
16the distributing agency of the State of Illinois to the System
17prior to allocation, in an amount determined in accordance with
18guidelines established by such agency and the System. Any
19contribution for fiscal year 2015 collected as a result of the
20change made by Public Act 98-674 this amendatory Act of the
2198th General Assembly shall be considered a State contribution
22under subsection (b-3) of this Section.
23    (d) Effective July 1, 1986, any employer of a teacher as
24defined in paragraph (8) of Section 16-106 shall pay the
25employer's normal cost of benefits based upon the teacher's
26service, in addition to employee contributions, as determined

 

 

10000SB2954ham001- 13 -LRB100 17269 MJP 39792 a

1by the System. Such employer contributions shall be forwarded
2monthly in accordance with guidelines established by the
3System.
4    However, with respect to benefits granted under Section
516-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
6of Section 16-106, the employer's contribution shall be 12%
7(rather than 20%) of the member's highest annual salary rate
8for each year of creditable service granted, and the employer
9shall also pay the required employee contribution on behalf of
10the teacher. For the purposes of Sections 16-133.4 and
1116-133.5, a teacher as defined in paragraph (8) of Section
1216-106 who is serving in that capacity while on leave of
13absence from another employer under this Article shall not be
14considered an employee of the employer from which the teacher
15is on leave.
16    (e) Beginning July 1, 1998, every employer of a teacher
17shall pay to the System an employer contribution computed as
18follows:
19        (1) Beginning July 1, 1998 through June 30, 1999, the
20    employer contribution shall be equal to 0.3% of each
21    teacher's salary.
22        (2) Beginning July 1, 1999 and thereafter, the employer
23    contribution shall be equal to 0.58% of each teacher's
24    salary.
25The school district or other employing unit may pay these
26employer contributions out of any source of funding available

 

 

10000SB2954ham001- 14 -LRB100 17269 MJP 39792 a

1for that purpose and shall forward the contributions to the
2System on the schedule established for the payment of member
3contributions.
4    These employer contributions are intended to offset a
5portion of the cost to the System of the increases in
6retirement benefits resulting from Public Act 90-582 this
7amendatory Act of 1998.
8    Each employer of teachers is entitled to a credit against
9the contributions required under this subsection (e) with
10respect to salaries paid to teachers for the period January 1,
112002 through June 30, 2003, equal to the amount paid by that
12employer under subsection (a-5) of Section 6.6 of the State
13Employees Group Insurance Act of 1971 with respect to salaries
14paid to teachers for that period.
15    The additional 1% employee contribution required under
16Section 16-152 by Public Act 90-582 this amendatory Act of 1998
17is the responsibility of the teacher and not the teacher's
18employer, unless the employer agrees, through collective
19bargaining or otherwise, to make the contribution on behalf of
20the teacher.
21    If an employer is required by a contract in effect on May
221, 1998 between the employer and an employee organization to
23pay, on behalf of all its full-time employees covered by this
24Article, all mandatory employee contributions required under
25this Article, then the employer shall be excused from paying
26the employer contribution required under this subsection (e)

 

 

10000SB2954ham001- 15 -LRB100 17269 MJP 39792 a

1for the balance of the term of that contract. The employer and
2the employee organization shall jointly certify to the System
3the existence of the contractual requirement, in such form as
4the System may prescribe. This exclusion shall cease upon the
5termination, extension, or renewal of the contract at any time
6after May 1, 1998.
7    (f) If the amount of a teacher's salary for any school year
8used to determine final average salary exceeds the member's
9annual full-time salary rate with the same employer for the
10previous school year by more than 6%, the teacher's employer
11shall pay to the System, in addition to all other payments
12required under this Section and in accordance with guidelines
13established by the System, the present value of the increase in
14benefits resulting from the portion of the increase in salary
15that is in excess of 6%. This present value shall be computed
16by the System on the basis of the actuarial assumptions and
17tables used in the most recent actuarial valuation of the
18System that is available at the time of the computation. If a
19teacher's salary for the 2005-2006 school year is used to
20determine final average salary under this subsection (f), then
21the changes made to this subsection (f) by Public Act 94-1057
22shall apply in calculating whether the increase in his or her
23salary is in excess of 6%. For the purposes of this Section,
24change in employment under Section 10-21.12 of the School Code
25on or after June 1, 2005 shall constitute a change in employer.
26The System may require the employer to provide any pertinent

 

 

10000SB2954ham001- 16 -LRB100 17269 MJP 39792 a

1information or documentation. The changes made to this
2subsection (f) by Public Act 94-1111 this amendatory Act of the
394th General Assembly apply without regard to whether the
4teacher was in service on or after its effective date.
5    Whenever it determines that a payment is or may be required
6under this subsection, the System shall calculate the amount of
7the payment and bill the employer for that amount. The bill
8shall specify the calculations used to determine the amount
9due. If the employer disputes the amount of the bill, it may,
10within 30 days after receipt of the bill, apply to the System
11in writing for a recalculation. The application must specify in
12detail the grounds of the dispute and, if the employer asserts
13that the calculation is subject to subsection (g) or (h) of
14this Section, must include an affidavit setting forth and
15attesting to all facts within the employer's knowledge that are
16pertinent to the applicability of that subsection. Upon
17receiving a timely application for recalculation, the System
18shall review the application and, if appropriate, recalculate
19the amount due.
20    The employer contributions required under this subsection
21(f) may be paid in the form of a lump sum within 90 days after
22receipt of the bill. If the employer contributions are not paid
23within 90 days after receipt of the bill, then interest will be
24charged at a rate equal to the System's annual actuarially
25assumed rate of return on investment compounded annually from
26the 91st day after receipt of the bill. Payments must be

 

 

10000SB2954ham001- 17 -LRB100 17269 MJP 39792 a

1concluded within 3 years after the employer's receipt of the
2bill.
3    (g) This subsection (g) applies only to payments made or
4salary increases given on or after June 1, 2005 but before July
51, 2011. The changes made by Public Act 94-1057 shall not
6require the System to refund any payments received before July
731, 2006 (the effective date of Public Act 94-1057).
8    When assessing payment for any amount due under subsection
9(f), the System shall exclude salary increases paid to teachers
10under contracts or collective bargaining agreements entered
11into, amended, or renewed before June 1, 2005.
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude salary increases paid to a
14teacher at a time when the teacher is 10 or more years from
15retirement eligibility under Section 16-132 or 16-133.2.
16    When assessing payment for any amount due under subsection
17(f), the System shall exclude salary increases resulting from
18overload work, including summer school, when the school
19district has certified to the System, and the System has
20approved the certification, that (i) the overload work is for
21the sole purpose of classroom instruction in excess of the
22standard number of classes for a full-time teacher in a school
23district during a school year and (ii) the salary increases are
24equal to or less than the rate of pay for classroom instruction
25computed on the teacher's current salary and work schedule.
26    When assessing payment for any amount due under subsection

 

 

10000SB2954ham001- 18 -LRB100 17269 MJP 39792 a

1(f), the System shall exclude a salary increase resulting from
2a promotion (i) for which the employee is required to hold a
3certificate or supervisory endorsement issued by the State
4Teacher Certification Board that is a different certification
5or supervisory endorsement than is required for the teacher's
6previous position and (ii) to a position that has existed and
7been filled by a member for no less than one complete academic
8year and the salary increase from the promotion is an increase
9that results in an amount no greater than the lesser of the
10average salary paid for other similar positions in the district
11requiring the same certification or the amount stipulated in
12the collective bargaining agreement for a similar position
13requiring the same certification.
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude any payment to the teacher from
16the State of Illinois or the State Board of Education over
17which the employer does not have discretion, notwithstanding
18that the payment is included in the computation of final
19average salary.
20    (h) When assessing payment for any amount due under
21subsection (f), the System shall exclude any salary increase
22described in subsection (g) of this Section given on or after
23July 1, 2011 but before July 1, 2014 under a contract or
24collective bargaining agreement entered into, amended, or
25renewed on or after June 1, 2005 but before July 1, 2011.
26Notwithstanding any other provision of this Section, any

 

 

10000SB2954ham001- 19 -LRB100 17269 MJP 39792 a

1payments made or salary increases given after June 30, 2014
2shall be used in assessing payment for any amount due under
3subsection (f) of this Section.
4    (i) The System shall prepare a report and file copies of
5the report with the Governor and the General Assembly by
6January 1, 2007 that contains all of the following information:
7        (1) The number of recalculations required by the
8    changes made to this Section by Public Act 94-1057 for each
9    employer.
10        (2) The dollar amount by which each employer's
11    contribution to the System was changed due to
12    recalculations required by Public Act 94-1057.
13        (3) The total amount the System received from each
14    employer as a result of the changes made to this Section by
15    Public Act 94-4.
16        (4) The increase in the required State contribution
17    resulting from the changes made to this Section by Public
18    Act 94-1057.
19    (i-5) For school years beginning on or after July 1, 2017,
20if the amount of a participant's salary for any school year,
21determined on a full-time equivalent basis, exceeds the amount
22of the salary set for the Governor, the participant's employer
23shall pay to the System, in addition to all other payments
24required under this Section and in accordance with guidelines
25established by the System, an amount determined by the System
26to be equal to the employer normal cost, as established by the

 

 

10000SB2954ham001- 20 -LRB100 17269 MJP 39792 a

1System and expressed as a total percentage of payroll,
2multiplied by the amount of salary in excess of the amount of
3the salary set for the Governor. This amount shall be computed
4by the System on the basis of the actuarial assumptions and
5tables used in the most recent actuarial valuation of the
6System that is available at the time of the computation. The
7System may require the employer to provide any pertinent
8information or documentation.
9    Whenever it determines that a payment is or may be required
10under this subsection, the System shall calculate the amount of
11the payment and bill the employer for that amount. The bill
12shall specify the calculations used to determine the amount
13due. If the employer disputes the amount of the bill, it may,
14within 30 days after receipt of the bill, apply to the System
15in writing for a recalculation. The application must specify in
16detail the grounds of the dispute. Upon receiving a timely
17application for recalculation, the System shall review the
18application and, if appropriate, recalculate the amount due.
19    The employer contributions required under this subsection
20may be paid in the form of a lump sum within 90 days after
21receipt of the bill. If the employer contributions are not paid
22within 90 days after receipt of the bill, then interest will be
23charged at a rate equal to the System's annual actuarially
24assumed rate of return on investment compounded annually from
25the 91st day after receipt of the bill. Payments must be
26concluded within 3 years after the employer's receipt of the

 

 

10000SB2954ham001- 21 -LRB100 17269 MJP 39792 a

1bill.
2    (j) For purposes of determining the required State
3contribution to the System, the value of the System's assets
4shall be equal to the actuarial value of the System's assets,
5which shall be calculated as follows:
6    As of June 30, 2008, the actuarial value of the System's
7assets shall be equal to the market value of the assets as of
8that date. In determining the actuarial value of the System's
9assets for fiscal years after June 30, 2008, any actuarial
10gains or losses from investment return incurred in a fiscal
11year shall be recognized in equal annual amounts over the
125-year period following that fiscal year.
13    (k) For purposes of determining the required State
14contribution to the system for a particular year, the actuarial
15value of assets shall be assumed to earn a rate of return equal
16to the system's actuarially assumed rate of return.
17(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
18revised 9-25-17.)".