101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3376

 

Introduced , by Rep. Mark Batinick

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Provides that the amendatory Act may be referred to as the Property Tax Relief and Pension Stabilization Fund Act. Amends the State Finance Act to create the Property Tax Relief and Pension Stabilization Fund. Provides that moneys in the Fund shall be used for State contributions to the 5 State-funded retirement systems and shall be used for grants to school districts. Specifies the percentage of the moneys in the Fund that shall be used for State contributions and for grants to school districts. Amends the State Budget Law of the Civil Administrative Code of Illinois. Creates a continuing appropriation of $2,400,000,000 to the Fund. Amends the 5 State-funded Articles of the Illinois Pension Code. Makes changes to the funding formula, including changing the funding goal to 70% (instead of 90%) and providing that the amount of the contribution for the unfunded liability shall be an amount sufficient, in equal annual dollar amounts, to bring the total assets up to 70% of the total actuarial liabilities by 2045. Requires recertification of the amount of the fiscal year 2020 contribution. Amends the School Code. Provides that beginning State fiscal year 2021, the State Board of Education shall make grants to school districts from the Property Tax Relief and Pension Stabilization Fund and requires a school district that receives a grant from the Fund to certify to the county clerk the amount of the grant. Amends the Property Tax Code. Provides that the county clerk shall reduce the amount of tax levied by the amount certified by the school district. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB101 10847 RPS 55982 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3376LRB101 10847 RPS 55982 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. References to Act. This Act may be referred to
5as the Property Tax Relief and Pension Stabilization Fund Act.
 
6    Section 5. The State Budget Law of the Civil Administrative
7Code of Illinois is amended by adding Section 50-21 as follows:
 
8    (15 ILCS 20/50-21 new)
9    Sec. 50-21. Funding for pensions and education.
10    (a) The Governor shall submit to the General Assembly a
11proposed budget in which total General Revenue Fund
12appropriations to the Property Tax Relief and Pension
13Stabilization Fund are $2,400,000,000. The Governor may submit
14a proposed budget in which the total appropriated and
15transferred amounts are less than the previous fiscal year if
16the Governor declares in writing to the General Assembly the
17reason for the lesser amounts.
18    (b) The General Assembly shall appropriate $2,400,000,000
19from the General Revenue Fund to the Property Tax Relief and
20Pension Stabilization Fund. The General Assembly may
21appropriate or transfer lesser amounts if it declares by Joint
22Resolution the reason for the lesser amounts.

 

 

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1    (c) If for any reason the aggregate appropriations made
2available are insufficient to meet the amount required under
3this Section, this Section shall constitute a continuing
4appropriation of all amounts necessary for these purposes. The
5General Assembly may appropriate lesser amounts by law.
 
6    Section 10. The State Finance Act is amended by adding
7Sections 5.891 and 6z-107 as follows:
 
8    (30 ILCS 105/5.891 new)
9    Sec. 5.891. The Property Tax Relief and Pension
10Stabilization Fund.
 
11    (30 ILCS 105/6z-107 new)
12    Sec. 6z-107. The Property Tax Relief and Pension
13Stabilization Fund. The Property Tax Relief and Pension
14Stabilization Fund is created as a special fund in the State
15treasury. The moneys in the Fund shall be expended in the
16following manner:
17    (1) For fiscal year 2020, 100% of the moneys shall be used
18for State contributions to the retirement systems established
19under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
20Code.
21    (2) For fiscal year 2021, 87.5% of the moneys shall be used
22for State contributions to the retirement systems established
23under Articles 2, 14, 15, 16, and 18 of the Illinois Pension

 

 

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1Code and 12.5% of the moneys shall be used by the State Board
2of Education for grants to school districts under Section
32-3.176 of the School Code.
4    (3) For fiscal year 2022, 75% of the moneys shall be used
5for State contributions to the retirement systems established
6under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
7Code and 25% of the moneys shall be used by the State Board of
8Education for grants to school districts under Section 2-3.176
9of the School Code.
10    (4) For fiscal year 2023, 62.5% of the moneys shall be used
11for State contributions to the retirement systems established
12under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
13Code and 37.5% of the moneys shall be used by the State Board
14of Education for grants to school districts under Section
152-3.176 of the School Code.
16    (5) For fiscal year 2024, 50% of the moneys shall be used
17for State contributions to the retirement systems established
18under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
19Code and 50% of the moneys shall be used by the State Board of
20Education for grants to school districts under Section 2-3.176
21of the School Code.
22    (6) For fiscal year 2025, 37.5% of the moneys shall be used
23for State contributions to the retirement systems established
24under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
25Code and 62.5% of the moneys shall be used by the State Board
26of Education for grants to school districts under Section

 

 

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12-3.176 of the School Code.
2    (7) For fiscal year 2026, 25% of the moneys shall be used
3for State contributions to the retirement systems established
4under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
5Code and 75% of the moneys shall be used by the State Board of
6Education for grants to school districts under Section 2-3.176
7of the School Code.
8    (8) For fiscal year 2027, 12.5% of the moneys shall be used
9for State contributions to the retirement systems established
10under Articles 2, 14, 15, 16, and 18 of the Illinois Pension
11Code and 87.5% of the moneys shall be used by the State Board
12of Education for grants to school districts under Section
132-3.176 of the School Code.
14    (9) For fiscal year 2028 and each fiscal year thereafter,
15100% of the moneys shall be used by the State Board of
16Education for grants to school districts under Section 2-3.176
17of the School Code.
 
18    Section 15. The Property Tax Code is amended by changing
19Section 18-45 as follows:
 
20    (35 ILCS 200/18-45)
21    Sec. 18-45. Computation of rates. Except as provided below,
22each county clerk shall estimate and determine the rate per
23cent upon the equalized assessed valuation for the levy year of
24the property in the county's taxing districts and special

 

 

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1service areas, as established under Article VII of the Illinois
2Constitution, so that the rate will produce, within the proper
3divisions of that county, not less than the net amount that
4will be required by the county board or certified to the county
5clerk according to law. Prior to extension, the county clerk
6shall determine the maximum amount of tax authorized to be
7levied by any statute. In determining the rate, the county
8clerk shall reduce the amount levied by the amount certified by
9the school district under Section 2-3.176 of the School Code.
10If the amount of any tax certified to the county clerk for
11extension exceeds the maximum, the clerk shall extend only the
12maximum allowable levy.
13    The county clerk shall exclude from the total equalized
14assessed valuation, whenever estimating and determining it
15under this Section and Sections 18-50 through 18-105, the
16equalized assessed valuation in the percentage which has been
17agreed to by each taxing district, of any property or portion
18thereof within an Enterprise Zone upon which an abatement of
19taxes was made under Section 18-170. However, if a municipality
20has adopted tax increment financing under Division 74.4 of
21Article 11 of the Illinois Municipal Code, the county clerk
22shall estimate and determine rates in accordance with Sections
2311-74.4-7 through 11-74.4-9 of that Act. Beginning on January
241, 1998 and thereafter, the equalized assessed value of all
25property for the computation of the amount to be extended
26within a county with 3,000,000 or more inhabitants shall be the

 

 

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1sum of (i) the equalized assessed value of such property for
2the year immediately preceding the levy year as established by
3the assessment and equalization process for the year
4immediately prior to the levy year, (ii) the equalized assessed
5value of any property that qualifies as new property, as
6defined in Section 18-185, or annexed property, as defined in
7Section 18-225, for the current levy year, and (iii) any
8recovered tax increment value, as defined in Section 18-185,
9for the current levy year, less the equalized assessed value of
10any property that qualifies as disconnected property, as
11defined in Section 18-225, for the current levy year.
12(Source: P.A. 90-320, eff. 1-1-98.)
 
13    Section 20. The Illinois Pension Code is amended by
14changing Sections 1-103.3, 2-124, 2-134, 14-131, 14-135,
1514-135.08, 15-155, 15-165, 16-158, 18-131, and 18-140 as
16follows:
 
17    (40 ILCS 5/1-103.3)
18    (Text of Section WITHOUT the changes made by P.A. 98-599,
19which has been held unconstitutional)
20    Sec. 1-103.3. Application of 1994 amendment; funding
21standard.
22    (a) The provisions of this amendatory Act of 1994 that
23change the method of calculating, certifying, and paying the
24required State contributions to the retirement systems

 

 

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1established under Articles 2, 14, 15, 16, and 18 shall first
2apply to the State contributions required for State fiscal year
31996.
4    (b) The General Assembly declares that a funding ratio (the
5ratio of a retirement system's total assets to its total
6actuarial liabilities) of 70% 90% is an appropriate goal for
7State-funded retirement systems in Illinois, and it finds that
8a funding ratio of 70% 90% is now the generally-recognized norm
9throughout the nation for public employee retirement systems
10that are considered to be financially secure and funded in an
11appropriate and responsible manner.
12    (c) Every 5 years, beginning in 1999, the Commission on
13Government Forecasting and Accountability, in consultation
14with the affected retirement systems and the Governor's Office
15of Management and Budget (formerly Bureau of the Budget), shall
16consider and determine whether the 70% 90% funding ratio
17adopted in subsection (b) continues to represent an appropriate
18goal for State-funded retirement systems in Illinois, and it
19shall report its findings and recommendations on this subject
20to the Governor and the General Assembly.
21(Source: P.A. 93-1067, eff. 1-15-05.)
 
22    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
23    Sec. 2-124. Contributions by State.
24    (a) The State shall make contributions to the System by
25appropriations of amounts which, together with the

 

 

HB3376- 8 -LRB101 10847 RPS 55982 b

1contributions of participants, interest earned on investments,
2and other income will meet the cost of maintaining and
3administering the System on a 70% 90% funded basis in
4accordance with actuarial recommendations.
5    (b) The Board shall determine the amount of State
6contributions required for each fiscal year on the basis of the
7actuarial tables and other assumptions adopted by the Board and
8the prescribed rate of interest, using the formula in
9subsection (c).
10    (c) For State fiscal years 2020 through 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13equal to the sum of (1) the State's portion of the projected
14normal cost for that fiscal year, plus (2) an amount
15sufficient, in equal annual dollar amounts, to bring the total
16assets of the System up to 70% of the total actuarial
17liabilities of the System by the end of State fiscal year 2045.
18In making these determinations, the required State
19contribution shall be calculated each year as a level
20percentage of payroll over the years remaining to and including
21fiscal year 2045 and shall be determined under the projected
22unit credit actuarial cost method.
23    For State fiscal years 2012 through 2019 2045, the minimum
24contribution to the System to be made by the State for each
25fiscal year shall be an amount determined by the System to be
26sufficient to bring the total assets of the System up to 90% of

 

 

HB3376- 9 -LRB101 10847 RPS 55982 b

1the total actuarial liabilities of the System by the end of
2State fiscal year 2045. In making these determinations, the
3required State contribution shall be calculated each year as a
4level percentage of payroll over the years remaining to and
5including fiscal year 2045 and shall be determined under the
6projected unit credit actuarial cost method.
7    A change in an actuarial or investment assumption that
8increases or decreases the required State contribution and
9first applies in State fiscal year 2018 or thereafter shall be
10implemented in equal annual amounts over a 5-year period
11beginning in the State fiscal year in which the actuarial
12change first applies to the required State contribution.
13    A change in an actuarial or investment assumption that
14increases or decreases the required State contribution and
15first applied to the State contribution in fiscal year 2014,
162015, 2016, or 2017 shall be implemented:
17        (i) as already applied in State fiscal years before
18    2018; and
19        (ii) in the portion of the 5-year period beginning in
20    the State fiscal year in which the actuarial change first
21    applied that occurs in State fiscal year 2018 or
22    thereafter, by calculating the change in equal annual
23    amounts over that 5-year period and then implementing it at
24    the resulting annual rate in each of the remaining fiscal
25    years in that 5-year period.
26    For State fiscal years 1996 through 2005, the State

 

 

HB3376- 10 -LRB101 10847 RPS 55982 b

1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3so that by State fiscal year 2011, the State is contributing at
4the rate required under this Section.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2006 is
7$4,157,000.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2007 is
10$5,220,300.
11    For each of State fiscal years 2008 through 2009, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14from the required State contribution for State fiscal year
152007, so that by State fiscal year 2011, the State is
16contributing at the rate otherwise required under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2010 is
19$10,454,000 and shall be made from the proceeds of bonds sold
20in fiscal year 2010 pursuant to Section 7.2 of the General
21Obligation Bond Act, less (i) the pro rata share of bond sale
22expenses determined by the System's share of total bond
23proceeds, (ii) any amounts received from the General Revenue
24Fund in fiscal year 2010, and (iii) any reduction in bond
25proceeds due to the issuance of discounted bonds, if
26applicable.

 

 

HB3376- 11 -LRB101 10847 RPS 55982 b

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2011 is
3the amount recertified by the System on or before April 1, 2011
4pursuant to Section 2-134 and shall be made from the proceeds
5of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
6the General Obligation Bond Act, less (i) the pro rata share of
7bond sale expenses determined by the System's share of total
8bond proceeds, (ii) any amounts received from the General
9Revenue Fund in fiscal year 2011, and (iii) any reduction in
10bond proceeds due to the issuance of discounted bonds, if
11applicable.
12    Beginning in State fiscal year 2046, the minimum State
13contribution for each fiscal year shall be the amount needed to
14maintain the total assets of the System at 70% 90% of the total
15actuarial liabilities of the System.
16    Amounts received by the System pursuant to Section 25 of
17the Budget Stabilization Act or Section 8.12 of the State
18Finance Act in any fiscal year do not reduce and do not
19constitute payment of any portion of the minimum State
20contribution required under this Article in that fiscal year.
21Such amounts shall not reduce, and shall not be included in the
22calculation of, the required State contributions under this
23Article in any future year until the System has reached a
24funding ratio of at least 70% 90%. A reference in this Article
25to the "required State contribution" or any substantially
26similar term does not include or apply to any amounts payable

 

 

HB3376- 12 -LRB101 10847 RPS 55982 b

1to the System under Section 25 of the Budget Stabilization Act.
2    Notwithstanding any other provision of this Section, the
3required State contribution for State fiscal year 2005 and for
4fiscal year 2008 and each fiscal year thereafter, as calculated
5under this Section and certified under Section 2-134, shall not
6exceed an amount equal to (i) the amount of the required State
7contribution that would have been calculated under this Section
8for that fiscal year if the System had not received any
9payments under subsection (d) of Section 7.2 of the General
10Obligation Bond Act, minus (ii) the portion of the State's
11total debt service payments for that fiscal year on the bonds
12issued in fiscal year 2003 for the purposes of that Section
137.2, as determined and certified by the Comptroller, that is
14the same as the System's portion of the total moneys
15distributed under subsection (d) of Section 7.2 of the General
16Obligation Bond Act. In determining this maximum for State
17fiscal years 2008 through 2010, however, the amount referred to
18in item (i) shall be increased, as a percentage of the
19applicable employee payroll, in equal increments calculated
20from the sum of the required State contribution for State
21fiscal year 2007 plus the applicable portion of the State's
22total debt service payments for fiscal year 2007 on the bonds
23issued in fiscal year 2003 for the purposes of Section 7.2 of
24the General Obligation Bond Act, so that, by State fiscal year
252011, the State is contributing at the rate otherwise required
26under this Section.

 

 

HB3376- 13 -LRB101 10847 RPS 55982 b

1    (d) For purposes of determining the required State
2contribution to the System, the value of the System's assets
3shall be equal to the actuarial value of the System's assets,
4which shall be calculated as follows:
5    As of June 30, 2008, the actuarial value of the System's
6assets shall be equal to the market value of the assets as of
7that date. In determining the actuarial value of the System's
8assets for fiscal years after June 30, 2008, any actuarial
9gains or losses from investment return incurred in a fiscal
10year shall be recognized in equal annual amounts over the
115-year period following that fiscal year.
12    (e) For purposes of determining the required State
13contribution to the system for a particular year, the actuarial
14value of assets shall be assumed to earn a rate of return equal
15to the system's actuarially assumed rate of return.
16(Source: P.A. 100-23, eff. 7-6-17.)
 
17    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
18    Sec. 2-134. To certify required State contributions and
19submit vouchers.
20    (a) The Board shall certify to the Governor on or before
21December 15 of each year until December 15, 2011 the amount of
22the required State contribution to the System for the next
23fiscal year and shall specifically identify the System's
24projected State normal cost for that fiscal year. The
25certification shall include a copy of the actuarial

 

 

HB3376- 14 -LRB101 10847 RPS 55982 b

1recommendations upon which it is based and shall specifically
2identify the System's projected State normal cost for that
3fiscal year.
4    On or before November 1 of each year, beginning November 1,
52012, the Board shall submit to the State Actuary, the
6Governor, and the General Assembly a proposed certification of
7the amount of the required State contribution to the System for
8the next fiscal year, along with all of the actuarial
9assumptions, calculations, and data upon which that proposed
10certification is based. On or before January 1 of each year
11beginning January 1, 2013, the State Actuary shall issue a
12preliminary report concerning the proposed certification and
13identifying, if necessary, recommended changes in actuarial
14assumptions that the Board must consider before finalizing its
15certification of the required State contributions. On or before
16January 15, 2013 and every January 15 thereafter, the Board
17shall certify to the Governor and the General Assembly the
18amount of the required State contribution for the next fiscal
19year. The Board's certification must note any deviations from
20the State Actuary's recommended changes, the reason or reasons
21for not following the State Actuary's recommended changes, and
22the fiscal impact of not following the State Actuary's
23recommended changes on the required State contribution.
24    On or before May 1, 2004, the Board shall recalculate and
25recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2005, taking

 

 

HB3376- 15 -LRB101 10847 RPS 55982 b

1into account the amounts appropriated to and received by the
2System under subsection (d) of Section 7.2 of the General
3Obligation Bond Act.
4    On or before July 1, 2005, the Board shall recalculate and
5recertify to the Governor the amount of the required State
6contribution to the System for State fiscal year 2006, taking
7into account the changes in required State contributions made
8by this amendatory Act of the 94th General Assembly.
9    On or before April 1, 2011, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2011, applying
12the changes made by Public Act 96-889 to the System's assets
13and liabilities as of June 30, 2009 as though Public Act 96-889
14was approved on that date.
15    By November 1, 2017, the Board shall recalculate and
16recertify to the State Actuary, the Governor, and the General
17Assembly the amount of the State contribution to the System for
18State fiscal year 2018, taking into account the changes in
19required State contributions made by this amendatory Act of the
20100th General Assembly. The State Actuary shall review the
21assumptions and valuations underlying the Board's revised
22certification and issue a preliminary report concerning the
23proposed recertification and identifying, if necessary,
24recommended changes in actuarial assumptions that the Board
25must consider before finalizing its certification of the
26required State contributions. The Board's final certification

 

 

HB3376- 16 -LRB101 10847 RPS 55982 b

1must note any deviations from the State Actuary's recommended
2changes, the reason or reasons for not following the State
3Actuary's recommended changes, and the fiscal impact of not
4following the State Actuary's recommended changes on the
5required State contribution.
6    By November 1, 2019, the Board shall recalculate and
7recertify to the State Actuary, the Governor, and the General
8Assembly the amount of the State contribution to the System for
9State fiscal year 2020, taking into account the changes in
10required State contributions made by this amendatory Act of the
11101st General Assembly. The State Actuary shall review the
12assumptions and valuations underlying the Board's revised
13certification and issue a preliminary report concerning the
14proposed recertification and identifying, if necessary,
15recommended changes in actuarial assumptions that the Board
16must consider before finalizing its certification of the
17required State contributions. The Board's final certification
18must note any deviations from the State Actuary's recommended
19changes, the reason or reasons for not following the State
20Actuary's recommended changes, and the fiscal impact of not
21following the State Actuary's recommended changes on the
22required State contribution.
23    (b) Beginning in State fiscal year 1996, on or as soon as
24possible after the 15th day of each month the Board shall
25submit vouchers for payment of State contributions to the
26System, in a total monthly amount of one-twelfth of the

 

 

HB3376- 17 -LRB101 10847 RPS 55982 b

1required annual State contribution certified under subsection
2(a). From the effective date of this amendatory Act of the 93rd
3General Assembly through June 30, 2004, the Board shall not
4submit vouchers for the remainder of fiscal year 2004 in excess
5of the fiscal year 2004 certified contribution amount
6determined under this Section after taking into consideration
7the transfer to the System under subsection (d) of Section
86z-61 of the State Finance Act. These vouchers shall be paid by
9the State Comptroller and Treasurer by warrants drawn on the
10funds appropriated to the System for that fiscal year. If in
11any month the amount remaining unexpended from all other
12appropriations to the System for the applicable fiscal year
13(including the appropriations to the System under Section 8.12
14of the State Finance Act and Section 1 of the State Pension
15Funds Continuing Appropriation Act) is less than the amount
16lawfully vouchered under this Section, the difference shall be
17paid from the General Revenue Fund under the continuing
18appropriation authority provided in Section 1.1 of the State
19Pension Funds Continuing Appropriation Act.
20    (c) The full amount of any annual appropriation for the
21System for State fiscal year 1995 shall be transferred and made
22available to the System at the beginning of that fiscal year at
23the request of the Board. Any excess funds remaining at the end
24of any fiscal year from appropriations shall be retained by the
25System as a general reserve to meet the System's accrued
26liabilities.

 

 

HB3376- 18 -LRB101 10847 RPS 55982 b

1(Source: P.A. 100-23, eff. 7-6-17.)
 
2    (40 ILCS 5/14-131)
3    Sec. 14-131. Contributions by State.
4    (a) The State shall make contributions to the System by
5appropriations of amounts which, together with other employer
6contributions from trust, federal, and other funds, employee
7contributions, investment income, and other income, will be
8sufficient to meet the cost of maintaining and administering
9the System on a 70% 90% funded basis in accordance with
10actuarial recommendations.
11    For the purposes of this Section and Section 14-135.08,
12references to State contributions refer only to employer
13contributions and do not include employee contributions that
14are picked up or otherwise paid by the State or a department on
15behalf of the employee.
16    (b) The Board shall determine the total amount of State
17contributions required for each fiscal year on the basis of the
18actuarial tables and other assumptions adopted by the Board,
19using the formula in subsection (e).
20    The Board shall also determine a State contribution rate
21for each fiscal year, expressed as a percentage of payroll,
22based on the total required State contribution for that fiscal
23year (less the amount received by the System from
24appropriations under Section 8.12 of the State Finance Act and
25Section 1 of the State Pension Funds Continuing Appropriation

 

 

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1Act, if any, for the fiscal year ending on the June 30
2immediately preceding the applicable November 15 certification
3deadline), the estimated payroll (including all forms of
4compensation) for personal services rendered by eligible
5employees, and the recommendations of the actuary.
6    For the purposes of this Section and Section 14.1 of the
7State Finance Act, the term "eligible employees" includes
8employees who participate in the System, persons who may elect
9to participate in the System but have not so elected, persons
10who are serving a qualifying period that is required for
11participation, and annuitants employed by a department as
12described in subdivision (a)(1) or (a)(2) of Section 14-111.
13    (c) Contributions shall be made by the several departments
14for each pay period by warrants drawn by the State Comptroller
15against their respective funds or appropriations based upon
16vouchers stating the amount to be so contributed. These amounts
17shall be based on the full rate certified by the Board under
18Section 14-135.08 for that fiscal year. From March 5, 2004 (the
19effective date of Public Act 93-665) through the payment of the
20final payroll from fiscal year 2004 appropriations, the several
21departments shall not make contributions for the remainder of
22fiscal year 2004 but shall instead make payments as required
23under subsection (a-1) of Section 14.1 of the State Finance
24Act. The several departments shall resume those contributions
25at the commencement of fiscal year 2005.
26    (c-1) Notwithstanding subsection (c) of this Section, for

 

 

HB3376- 20 -LRB101 10847 RPS 55982 b

1fiscal years 2010, 2012, 2013, 2014, 2015, 2016, 2017, 2018,
2and 2019 only, contributions by the several departments are not
3required to be made for General Revenue Funds payrolls
4processed by the Comptroller. Payrolls paid by the several
5departments from all other State funds must continue to be
6processed pursuant to subsection (c) of this Section.
7    (c-2) For State fiscal years 2010, 2012, 2013, 2014, 2015,
82016, 2017, 2018, and 2019 only, on or as soon as possible
9after the 15th day of each month, the Board shall submit
10vouchers for payment of State contributions to the System, in a
11total monthly amount of one-twelfth of the fiscal year General
12Revenue Fund contribution as certified by the System pursuant
13to Section 14-135.08 of the Illinois Pension Code.
14    (d) If an employee is paid from trust funds or federal
15funds, the department or other employer shall pay employer
16contributions from those funds to the System at the certified
17rate, unless the terms of the trust or the federal-State
18agreement preclude the use of the funds for that purpose, in
19which case the required employer contributions shall be paid by
20the State. From March 5, 2004 (the effective date of Public Act
2193-665) through the payment of the final payroll from fiscal
22year 2004 appropriations, the department or other employer
23shall not pay contributions for the remainder of fiscal year
242004 but shall instead make payments as required under
25subsection (a-1) of Section 14.1 of the State Finance Act. The
26department or other employer shall resume payment of

 

 

HB3376- 21 -LRB101 10847 RPS 55982 b

1contributions at the commencement of fiscal year 2005.
2    (e) For State fiscal years 2020 through 2045, the minimum
3contribution to the System to be made by the State for each
4fiscal year shall be an amount determined by the System to be
5equal to the sum of (1) the State's portion of the projected
6normal cost for that fiscal year, plus (2) an amount
7sufficient, in equal annual dollar amounts, to bring the total
8assets of the System up to 70% of the total actuarial
9liabilities of the System by the end of State fiscal year 2045.
10In making these determinations, the required State
11contribution shall be calculated each year as a level
12percentage of payroll over the years remaining to and including
13fiscal year 2045 and shall be determined under the projected
14unit credit actuarial cost method.
15    For State fiscal years 2019 2012 through 2045, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18sufficient to bring the total assets of the System up to 90% of
19the total actuarial liabilities of the System by the end of
20State fiscal year 2045. In making these determinations, the
21required State contribution shall be calculated each year as a
22level percentage of payroll over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    A change in an actuarial or investment assumption that
26increases or decreases the required State contribution and

 

 

HB3376- 22 -LRB101 10847 RPS 55982 b

1first applies in State fiscal year 2018 or thereafter shall be
2implemented in equal annual amounts over a 5-year period
3beginning in the State fiscal year in which the actuarial
4change first applies to the required State contribution.
5    A change in an actuarial or investment assumption that
6increases or decreases the required State contribution and
7first applied to the State contribution in fiscal year 2014,
82015, 2016, or 2017 shall be implemented:
9        (i) as already applied in State fiscal years before
10    2018; and
11        (ii) in the portion of the 5-year period beginning in
12    the State fiscal year in which the actuarial change first
13    applied that occurs in State fiscal year 2018 or
14    thereafter, by calculating the change in equal annual
15    amounts over that 5-year period and then implementing it at
16    the resulting annual rate in each of the remaining fiscal
17    years in that 5-year period.
18    For State fiscal years 1996 through 2005, the State
19contribution to the System, as a percentage of the applicable
20employee payroll, shall be increased in equal annual increments
21so that by State fiscal year 2011, the State is contributing at
22the rate required under this Section; except that (i) for State
23fiscal year 1998, for all purposes of this Code and any other
24law of this State, the certified percentage of the applicable
25employee payroll shall be 5.052% for employees earning eligible
26creditable service under Section 14-110 and 6.500% for all

 

 

HB3376- 23 -LRB101 10847 RPS 55982 b

1other employees, notwithstanding any contrary certification
2made under Section 14-135.08 before July 7, 1997 (the effective
3date of Public Act 90-65), and (ii) in the following specified
4State fiscal years, the State contribution to the System shall
5not be less than the following indicated percentages of the
6applicable employee payroll, even if the indicated percentage
7will produce a State contribution in excess of the amount
8otherwise required under this subsection and subsection (a):
99.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
102002; 10.6% in FY 2003; and 10.8% in FY 2004.
11    Notwithstanding any other provision of this Article, the
12total required State contribution to the System for State
13fiscal year 2006 is $203,783,900.
14    Notwithstanding any other provision of this Article, the
15total required State contribution to the System for State
16fiscal year 2007 is $344,164,400.
17    For each of State fiscal years 2008 through 2009, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual increments
20from the required State contribution for State fiscal year
212007, so that by State fiscal year 2011, the State is
22contributing at the rate otherwise required under this Section.
23    Notwithstanding any other provision of this Article, the
24total required State General Revenue Fund contribution for
25State fiscal year 2010 is $723,703,100 and shall be made from
26the proceeds of bonds sold in fiscal year 2010 pursuant to

 

 

HB3376- 24 -LRB101 10847 RPS 55982 b

1Section 7.2 of the General Obligation Bond Act, less (i) the
2pro rata share of bond sale expenses determined by the System's
3share of total bond proceeds, (ii) any amounts received from
4the General Revenue Fund in fiscal year 2010, and (iii) any
5reduction in bond proceeds due to the issuance of discounted
6bonds, if applicable.
7    Notwithstanding any other provision of this Article, the
8total required State General Revenue Fund contribution for
9State fiscal year 2011 is the amount recertified by the System
10on or before April 1, 2011 pursuant to Section 14-135.08 and
11shall be made from the proceeds of bonds sold in fiscal year
122011 pursuant to Section 7.2 of the General Obligation Bond
13Act, less (i) the pro rata share of bond sale expenses
14determined by the System's share of total bond proceeds, (ii)
15any amounts received from the General Revenue Fund in fiscal
16year 2011, and (iii) any reduction in bond proceeds due to the
17issuance of discounted bonds, if applicable.
18    Beginning in State fiscal year 2046, the minimum State
19contribution for each fiscal year shall be the amount needed to
20maintain the total assets of the System at 70% 90% of the total
21actuarial liabilities of the System.
22    Amounts received by the System pursuant to Section 25 of
23the Budget Stabilization Act or Section 8.12 of the State
24Finance Act in any fiscal year do not reduce and do not
25constitute payment of any portion of the minimum State
26contribution required under this Article in that fiscal year.

 

 

HB3376- 25 -LRB101 10847 RPS 55982 b

1Such amounts shall not reduce, and shall not be included in the
2calculation of, the required State contributions under this
3Article in any future year until the System has reached a
4funding ratio of at least 70% 90%. A reference in this Article
5to the "required State contribution" or any substantially
6similar term does not include or apply to any amounts payable
7to the System under Section 25 of the Budget Stabilization Act.
8    Notwithstanding any other provision of this Section, the
9required State contribution for State fiscal year 2005 and for
10fiscal year 2008 and each fiscal year thereafter, as calculated
11under this Section and certified under Section 14-135.08, shall
12not exceed an amount equal to (i) the amount of the required
13State contribution that would have been calculated under this
14Section for that fiscal year if the System had not received any
15payments under subsection (d) of Section 7.2 of the General
16Obligation Bond Act, minus (ii) the portion of the State's
17total debt service payments for that fiscal year on the bonds
18issued in fiscal year 2003 for the purposes of that Section
197.2, as determined and certified by the Comptroller, that is
20the same as the System's portion of the total moneys
21distributed under subsection (d) of Section 7.2 of the General
22Obligation Bond Act. In determining this maximum for State
23fiscal years 2008 through 2010, however, the amount referred to
24in item (i) shall be increased, as a percentage of the
25applicable employee payroll, in equal increments calculated
26from the sum of the required State contribution for State

 

 

HB3376- 26 -LRB101 10847 RPS 55982 b

1fiscal year 2007 plus the applicable portion of the State's
2total debt service payments for fiscal year 2007 on the bonds
3issued in fiscal year 2003 for the purposes of Section 7.2 of
4the General Obligation Bond Act, so that, by State fiscal year
52011, the State is contributing at the rate otherwise required
6under this Section.
7    (f) After the submission of all payments for eligible
8employees from personal services line items in fiscal year 2004
9have been made, the Comptroller shall provide to the System a
10certification of the sum of all fiscal year 2004 expenditures
11for personal services that would have been covered by payments
12to the System under this Section if the provisions of Public
13Act 93-665 had not been enacted. Upon receipt of the
14certification, the System shall determine the amount due to the
15System based on the full rate certified by the Board under
16Section 14-135.08 for fiscal year 2004 in order to meet the
17State's obligation under this Section. The System shall compare
18this amount due to the amount received by the System in fiscal
19year 2004 through payments under this Section and under Section
206z-61 of the State Finance Act. If the amount due is more than
21the amount received, the difference shall be termed the "Fiscal
22Year 2004 Shortfall" for purposes of this Section, and the
23Fiscal Year 2004 Shortfall shall be satisfied under Section 1.2
24of the State Pension Funds Continuing Appropriation Act. If the
25amount due is less than the amount received, the difference
26shall be termed the "Fiscal Year 2004 Overpayment" for purposes

 

 

HB3376- 27 -LRB101 10847 RPS 55982 b

1of this Section, and the Fiscal Year 2004 Overpayment shall be
2repaid by the System to the Pension Contribution Fund as soon
3as practicable after the certification.
4    (g) For purposes of determining the required State
5contribution to the System, the value of the System's assets
6shall be equal to the actuarial value of the System's assets,
7which shall be calculated as follows:
8    As of June 30, 2008, the actuarial value of the System's
9assets shall be equal to the market value of the assets as of
10that date. In determining the actuarial value of the System's
11assets for fiscal years after June 30, 2008, any actuarial
12gains or losses from investment return incurred in a fiscal
13year shall be recognized in equal annual amounts over the
145-year period following that fiscal year.
15    (h) For purposes of determining the required State
16contribution to the System for a particular year, the actuarial
17value of assets shall be assumed to earn a rate of return equal
18to the System's actuarially assumed rate of return.
19    (i) After the submission of all payments for eligible
20employees from personal services line items paid from the
21General Revenue Fund in fiscal year 2010 have been made, the
22Comptroller shall provide to the System a certification of the
23sum of all fiscal year 2010 expenditures for personal services
24that would have been covered by payments to the System under
25this Section if the provisions of Public Act 96-45 had not been
26enacted. Upon receipt of the certification, the System shall

 

 

HB3376- 28 -LRB101 10847 RPS 55982 b

1determine the amount due to the System based on the full rate
2certified by the Board under Section 14-135.08 for fiscal year
32010 in order to meet the State's obligation under this
4Section. The System shall compare this amount due to the amount
5received by the System in fiscal year 2010 through payments
6under this Section. If the amount due is more than the amount
7received, the difference shall be termed the "Fiscal Year 2010
8Shortfall" for purposes of this Section, and the Fiscal Year
92010 Shortfall shall be satisfied under Section 1.2 of the
10State Pension Funds Continuing Appropriation Act. If the amount
11due is less than the amount received, the difference shall be
12termed the "Fiscal Year 2010 Overpayment" for purposes of this
13Section, and the Fiscal Year 2010 Overpayment shall be repaid
14by the System to the General Revenue Fund as soon as
15practicable after the certification.
16    (j) After the submission of all payments for eligible
17employees from personal services line items paid from the
18General Revenue Fund in fiscal year 2011 have been made, the
19Comptroller shall provide to the System a certification of the
20sum of all fiscal year 2011 expenditures for personal services
21that would have been covered by payments to the System under
22this Section if the provisions of Public Act 96-1497 had not
23been enacted. Upon receipt of the certification, the System
24shall determine the amount due to the System based on the full
25rate certified by the Board under Section 14-135.08 for fiscal
26year 2011 in order to meet the State's obligation under this

 

 

HB3376- 29 -LRB101 10847 RPS 55982 b

1Section. The System shall compare this amount due to the amount
2received by the System in fiscal year 2011 through payments
3under this Section. If the amount due is more than the amount
4received, the difference shall be termed the "Fiscal Year 2011
5Shortfall" for purposes of this Section, and the Fiscal Year
62011 Shortfall shall be satisfied under Section 1.2 of the
7State Pension Funds Continuing Appropriation Act. If the amount
8due is less than the amount received, the difference shall be
9termed the "Fiscal Year 2011 Overpayment" for purposes of this
10Section, and the Fiscal Year 2011 Overpayment shall be repaid
11by the System to the General Revenue Fund as soon as
12practicable after the certification.
13    (k) For fiscal years 2012 through 2019 only, after the
14submission of all payments for eligible employees from personal
15services line items paid from the General Revenue Fund in the
16fiscal year have been made, the Comptroller shall provide to
17the System a certification of the sum of all expenditures in
18the fiscal year for personal services. Upon receipt of the
19certification, the System shall determine the amount due to the
20System based on the full rate certified by the Board under
21Section 14-135.08 for the fiscal year in order to meet the
22State's obligation under this Section. The System shall compare
23this amount due to the amount received by the System for the
24fiscal year. If the amount due is more than the amount
25received, the difference shall be termed the "Prior Fiscal Year
26Shortfall" for purposes of this Section, and the Prior Fiscal

 

 

HB3376- 30 -LRB101 10847 RPS 55982 b

1Year Shortfall shall be satisfied under Section 1.2 of the
2State Pension Funds Continuing Appropriation Act. If the amount
3due is less than the amount received, the difference shall be
4termed the "Prior Fiscal Year Overpayment" for purposes of this
5Section, and the Prior Fiscal Year Overpayment shall be repaid
6by the System to the General Revenue Fund as soon as
7practicable after the certification.
8(Source: P.A. 99-8, eff. 7-9-15; 99-523, eff. 6-30-16; 100-23,
9eff. 7-6-17; 100-587, eff. 6-4-18.)
 
10    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
11    Sec. 14-135.08. To certify required State contributions.
12    (a) To certify to the Governor and to each department, on
13or before November 15 of each year until November 15, 2011, the
14required rate for State contributions to the System for the
15next State fiscal year, as determined under subsection (b) of
16Section 14-131. The certification to the Governor under this
17subsection (a) shall include a copy of the actuarial
18recommendations upon which the rate is based and shall
19specifically identify the System's projected State normal cost
20for that fiscal year.
21    (a-5) On or before November 1 of each year, beginning
22November 1, 2012, the Board shall submit to the State Actuary,
23the Governor, and the General Assembly a proposed certification
24of the amount of the required State contribution to the System
25for the next fiscal year, along with all of the actuarial

 

 

HB3376- 31 -LRB101 10847 RPS 55982 b

1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions. On or before
8January 15, 2013 and each January 15 thereafter, the Board
9shall certify to the Governor and the General Assembly the
10amount of the required State contribution for the next fiscal
11year. The Board's certification must note any deviations from
12the State Actuary's recommended changes, the reason or reasons
13for not following the State Actuary's recommended changes, and
14the fiscal impact of not following the State Actuary's
15recommended changes on the required State contribution.
16    (b) The certifications under subsections (a) and (a-5)
17shall include an additional amount necessary to pay all
18principal of and interest on those general obligation bonds due
19the next fiscal year authorized by Section 7.2(a) of the
20General Obligation Bond Act and issued to provide the proceeds
21deposited by the State with the System in July 2003,
22representing deposits other than amounts reserved under
23Section 7.2(c) of the General Obligation Bond Act. For State
24fiscal year 2005, the Board shall make a supplemental
25certification of the additional amount necessary to pay all
26principal of and interest on those general obligation bonds due

 

 

HB3376- 32 -LRB101 10847 RPS 55982 b

1in State fiscal years 2004 and 2005 authorized by Section
27.2(a) of the General Obligation Bond Act and issued to provide
3the proceeds deposited by the State with the System in July
42003, representing deposits other than amounts reserved under
5Section 7.2(c) of the General Obligation Bond Act, as soon as
6practical after the effective date of this amendatory Act of
7the 93rd General Assembly.
8    On or before May 1, 2004, the Board shall recalculate and
9recertify to the Governor and to each department the amount of
10the required State contribution to the System and the required
11rates for State contributions to the System for State fiscal
12year 2005, taking into account the amounts appropriated to and
13received by the System under subsection (d) of Section 7.2 of
14the General Obligation Bond Act.
15    On or before July 1, 2005, the Board shall recalculate and
16recertify to the Governor and to each department the amount of
17the required State contribution to the System and the required
18rates for State contributions to the System for State fiscal
19year 2006, taking into account the changes in required State
20contributions made by this amendatory Act of the 94th General
21Assembly.
22    On or before April 1, 2011, the Board shall recalculate and
23recertify to the Governor and to each department the amount of
24the required State contribution to the System for State fiscal
25year 2011, applying the changes made by Public Act 96-889 to
26the System's assets and liabilities as of June 30, 2009 as

 

 

HB3376- 33 -LRB101 10847 RPS 55982 b

1though Public Act 96-889 was approved on that date.
2    By November 1, 2017, the Board shall recalculate and
3recertify to the State Actuary, the Governor, and the General
4Assembly the amount of the State contribution to the System for
5State fiscal year 2018, taking into account the changes in
6required State contributions made by this amendatory Act of the
7100th General Assembly. The State Actuary shall review the
8assumptions and valuations underlying the Board's revised
9certification and issue a preliminary report concerning the
10proposed recertification and identifying, if necessary,
11recommended changes in actuarial assumptions that the Board
12must consider before finalizing its certification of the
13required State contributions. The Board's final certification
14must note any deviations from the State Actuary's recommended
15changes, the reason or reasons for not following the State
16Actuary's recommended changes, and the fiscal impact of not
17following the State Actuary's recommended changes on the
18required State contribution.
19    On or after June 15, 2019, but no later than June 30, 2019,
20the Board shall recalculate and recertify to the Governor and
21the General Assembly the amount of the State contribution to
22the System for State fiscal year 2019, taking into account the
23changes in required State contributions made by this amendatory
24Act of the 100th General Assembly. The recalculation shall be
25made using assumptions adopted by the Board for the original
26fiscal year 2019 certification. The monthly voucher for the

 

 

HB3376- 34 -LRB101 10847 RPS 55982 b

112th month of fiscal year 2019 shall be paid by the Comptroller
2after the recertification required pursuant to this paragraph
3is submitted to the Governor, Comptroller, and General
4Assembly. The recertification submitted to the General
5Assembly shall be filed with the Clerk of the House of
6Representatives and the Secretary of the Senate in electronic
7form only, in the manner that the Clerk and the Secretary shall
8direct.
9    By November 1, 2019, the Board shall recalculate and
10recertify to the State Actuary, the Governor, and the General
11Assembly the amount of the State contribution to the System for
12State fiscal year 2020, taking into account the changes in
13required State contributions made by this amendatory Act of the
14101st General Assembly. The State Actuary shall review the
15assumptions and valuations underlying the Board's revised
16certification and issue a preliminary report concerning the
17proposed recertification and identifying, if necessary,
18recommended changes in actuarial assumptions that the Board
19must consider before finalizing its certification of the
20required State contributions. The Board's final certification
21must note any deviations from the State Actuary's recommended
22changes, the reason or reasons for not following the State
23Actuary's recommended changes, and the fiscal impact of not
24following the State Actuary's recommended changes on the
25required State contribution.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 

 

 

HB3376- 35 -LRB101 10847 RPS 55982 b

1    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
2    Sec. 15-155. Employer contributions.
3    (a) The State of Illinois shall make contributions by
4appropriations of amounts which, together with the other
5employer contributions from trust, federal, and other funds,
6employee contributions, income from investments, and other
7income of this System, will be sufficient to meet the cost of
8maintaining and administering the System on a 70% 90% funded
9basis in accordance with actuarial recommendations.
10    The Board shall determine the amount of State contributions
11required for each fiscal year on the basis of the actuarial
12tables and other assumptions adopted by the Board and the
13recommendations of the actuary, using the formula in subsection
14(a-1).
15    (a-1) For State fiscal years 2020 through 2045, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18equal to the sum of (1) the State's portion of the projected
19normal cost for that fiscal year, plus (2) an amount
20sufficient, in equal annual dollar amounts, to bring the total
21assets of the System up to 70% of the total actuarial
22liabilities of the System by the end of State fiscal year 2045.
23In making these determinations, the required State
24contribution shall be calculated each year as a level
25percentage of payroll over the years remaining to and including

 

 

HB3376- 36 -LRB101 10847 RPS 55982 b

1fiscal year 2045 and shall be determined under the projected
2unit credit actuarial cost method.
3     For State fiscal years 2012 through 2019 2045, the minimum
4contribution to the System to be made by the State for each
5fiscal year shall be an amount determined by the System to be
6sufficient to bring the total assets of the System up to 90% of
7the total actuarial liabilities of the System by the end of
8State fiscal year 2045. In making these determinations, the
9required State contribution shall be calculated each year as a
10level percentage of payroll over the years remaining to and
11including fiscal year 2045 and shall be determined under the
12projected unit credit actuarial cost method.
13    For each of State fiscal years 2018, 2019, and 2020, the
14State shall make an additional contribution to the System equal
15to 2% of the total payroll of each employee who is deemed to
16have elected the benefits under Section 1-161 or who has made
17the election under subsection (c) of Section 1-161.
18    A change in an actuarial or investment assumption that
19increases or decreases the required State contribution and
20first applies in State fiscal year 2018 or thereafter shall be
21implemented in equal annual amounts over a 5-year period
22beginning in the State fiscal year in which the actuarial
23change first applies to the required State contribution.
24    A change in an actuarial or investment assumption that
25increases or decreases the required State contribution and
26first applied to the State contribution in fiscal year 2014,

 

 

HB3376- 37 -LRB101 10847 RPS 55982 b

12015, 2016, or 2017 shall be implemented:
2        (i) as already applied in State fiscal years before
3    2018; and
4        (ii) in the portion of the 5-year period beginning in
5    the State fiscal year in which the actuarial change first
6    applied that occurs in State fiscal year 2018 or
7    thereafter, by calculating the change in equal annual
8    amounts over that 5-year period and then implementing it at
9    the resulting annual rate in each of the remaining fiscal
10    years in that 5-year period.
11    For State fiscal years 1996 through 2005, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14so that by State fiscal year 2011, the State is contributing at
15the rate required under this Section.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2006 is
18$166,641,900.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2007 is
21$252,064,100.
22    For each of State fiscal years 2008 through 2009, the State
23contribution to the System, as a percentage of the applicable
24employee payroll, shall be increased in equal annual increments
25from the required State contribution for State fiscal year
262007, so that by State fiscal year 2011, the State is

 

 

HB3376- 38 -LRB101 10847 RPS 55982 b

1contributing at the rate otherwise required under this Section.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2010 is
4$702,514,000 and shall be made from the State Pensions Fund and
5proceeds of bonds sold in fiscal year 2010 pursuant to Section
67.2 of the General Obligation Bond Act, less (i) the pro rata
7share of bond sale expenses determined by the System's share of
8total bond proceeds, (ii) any amounts received from the General
9Revenue Fund in fiscal year 2010, (iii) any reduction in bond
10proceeds due to the issuance of discounted bonds, if
11applicable.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2011 is
14the amount recertified by the System on or before April 1, 2011
15pursuant to Section 15-165 and shall be made from the State
16Pensions Fund and proceeds of bonds sold in fiscal year 2011
17pursuant to Section 7.2 of the General Obligation Bond Act,
18less (i) the pro rata share of bond sale expenses determined by
19the System's share of total bond proceeds, (ii) any amounts
20received from the General Revenue Fund in fiscal year 2011, and
21(iii) any reduction in bond proceeds due to the issuance of
22discounted bonds, if applicable.
23    Beginning in State fiscal year 2046, the minimum State
24contribution for each fiscal year shall be the amount needed to
25maintain the total assets of the System at 70% 90% of the total
26actuarial liabilities of the System.

 

 

HB3376- 39 -LRB101 10847 RPS 55982 b

1    Amounts received by the System pursuant to Section 25 of
2the Budget Stabilization Act or Section 8.12 of the State
3Finance Act in any fiscal year do not reduce and do not
4constitute payment of any portion of the minimum State
5contribution required under this Article in that fiscal year.
6Such amounts shall not reduce, and shall not be included in the
7calculation of, the required State contributions under this
8Article in any future year until the System has reached a
9funding ratio of at least 70% 90%. A reference in this Article
10to the "required State contribution" or any substantially
11similar term does not include or apply to any amounts payable
12to the System under Section 25 of the Budget Stabilization Act.
13    Notwithstanding any other provision of this Section, the
14required State contribution for State fiscal year 2005 and for
15fiscal year 2008 and each fiscal year thereafter, as calculated
16under this Section and certified under Section 15-165, shall
17not exceed an amount equal to (i) the amount of the required
18State contribution that would have been calculated under this
19Section for that fiscal year if the System had not received any
20payments under subsection (d) of Section 7.2 of the General
21Obligation Bond Act, minus (ii) the portion of the State's
22total debt service payments for that fiscal year on the bonds
23issued in fiscal year 2003 for the purposes of that Section
247.2, as determined and certified by the Comptroller, that is
25the same as the System's portion of the total moneys
26distributed under subsection (d) of Section 7.2 of the General

 

 

HB3376- 40 -LRB101 10847 RPS 55982 b

1Obligation Bond Act. In determining this maximum for State
2fiscal years 2008 through 2010, however, the amount referred to
3in item (i) shall be increased, as a percentage of the
4applicable employee payroll, in equal increments calculated
5from the sum of the required State contribution for State
6fiscal year 2007 plus the applicable portion of the State's
7total debt service payments for fiscal year 2007 on the bonds
8issued in fiscal year 2003 for the purposes of Section 7.2 of
9the General Obligation Bond Act, so that, by State fiscal year
102011, the State is contributing at the rate otherwise required
11under this Section.
12    (a-2) Beginning in fiscal year 2018, each employer under
13this Article shall pay to the System a required contribution
14determined as a percentage of projected payroll and sufficient
15to produce an annual amount equal to:
16        (i) for each of fiscal years 2018, 2019, and 2020, the
17    defined benefit normal cost of the defined benefit plan,
18    less the employee contribution, for each employee of that
19    employer who has elected or who is deemed to have elected
20    the benefits under Section 1-161 or who has made the
21    election under subsection (c) of Section 1-161; for fiscal
22    year 2021 and each fiscal year thereafter, the defined
23    benefit normal cost of the defined benefit plan, less the
24    employee contribution, plus 2%, 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

 

 

HB3376- 41 -LRB101 10847 RPS 55982 b

1    election under subsection (c) of Section 1-161; plus
2        (ii) the amount required for that fiscal year to
3    amortize any unfunded actuarial accrued liability
4    associated with the present value of liabilities
5    attributable to the employer's account under Section
6    15-155.2, determined as a level percentage of payroll over
7    a 30-year rolling amortization period.
8    In determining contributions required under item (i) of
9this subsection, the System shall determine an aggregate rate
10for all employers, expressed as a percentage of projected
11payroll.
12    In determining the contributions required under item (ii)
13of this subsection, the amount shall be computed by the System
14on the basis of the actuarial assumptions and tables used in
15the most recent actuarial valuation of the System that is
16available at the time of the computation.
17    The contributions required under this subsection (a-2)
18shall be paid by an employer concurrently with that employer's
19payroll payment period. The State, as the actual employer of an
20employee, shall make the required contributions under this
21subsection.
22    As used in this subsection, "academic year" means the
2312-month period beginning September 1.
24    (b) If an employee is paid from trust or federal funds, the
25employer shall pay to the Board contributions from those funds
26which are sufficient to cover the accruing normal costs on

 

 

HB3376- 42 -LRB101 10847 RPS 55982 b

1behalf of the employee. However, universities having employees
2who are compensated out of local auxiliary funds, income funds,
3or service enterprise funds are not required to pay such
4contributions on behalf of those employees. The local auxiliary
5funds, income funds, and service enterprise funds of
6universities shall not be considered trust funds for the
7purpose of this Article, but funds of alumni associations,
8foundations, and athletic associations which are affiliated
9with the universities included as employers under this Article
10and other employers which do not receive State appropriations
11are considered to be trust funds for the purpose of this
12Article.
13    (b-1) The City of Urbana and the City of Champaign shall
14each make employer contributions to this System for their
15respective firefighter employees who participate in this
16System pursuant to subsection (h) of Section 15-107. The rate
17of contributions to be made by those municipalities shall be
18determined annually by the Board on the basis of the actuarial
19assumptions adopted by the Board and the recommendations of the
20actuary, and shall be expressed as a percentage of salary for
21each such employee. The Board shall certify the rate to the
22affected municipalities as soon as may be practical. The
23employer contributions required under this subsection shall be
24remitted by the municipality to the System at the same time and
25in the same manner as employee contributions.
26    (c) Through State fiscal year 1995: The total employer

 

 

HB3376- 43 -LRB101 10847 RPS 55982 b

1contribution shall be apportioned among the various funds of
2the State and other employers, whether trust, federal, or other
3funds, in accordance with actuarial procedures approved by the
4Board. State of Illinois contributions for employers receiving
5State appropriations for personal services shall be payable
6from appropriations made to the employers or to the System. The
7contributions for Class I community colleges covering earnings
8other than those paid from trust and federal funds, shall be
9payable solely from appropriations to the Illinois Community
10College Board or the System for employer contributions.
11    (d) Beginning in State fiscal year 1996, the required State
12contributions to the System shall be appropriated directly to
13the System and shall be payable through vouchers issued in
14accordance with subsection (c) of Section 15-165, except as
15provided in subsection (g).
16    (e) The State Comptroller shall draw warrants payable to
17the System upon proper certification by the System or by the
18employer in accordance with the appropriation laws and this
19Code.
20    (f) Normal costs under this Section means liability for
21pensions and other benefits which accrues to the System because
22of the credits earned for service rendered by the participants
23during the fiscal year and expenses of administering the
24System, but shall not include the principal of or any
25redemption premium or interest on any bonds issued by the Board
26or any expenses incurred or deposits required in connection

 

 

HB3376- 44 -LRB101 10847 RPS 55982 b

1therewith.
2    (g) For academic years beginning on or after June 1, 2005
3and before July 1, 2018 and for earnings paid to a participant
4under a contract or collective bargaining agreement entered
5into, amended, or renewed before June 4, 2018 (the effective
6date of Public Act 100-587) this amendatory Act of the 100th
7General Assembly, if the amount of a participant's earnings for
8any academic year used to determine the final rate of earnings,
9determined on a full-time equivalent basis, exceeds the amount
10of his or her earnings with the same employer for the previous
11academic year, determined on a full-time equivalent basis, by
12more than 6%, the participant's employer shall pay to the
13System, in addition to all other payments required under this
14Section and in accordance with guidelines established by the
15System, the present value of the increase in benefits resulting
16from the portion of the increase in earnings that is in excess
17of 6%. This present value shall be computed by the System on
18the basis of the actuarial assumptions and tables used in the
19most recent actuarial valuation of the System that is available
20at the time of the computation. The System may require the
21employer to provide any pertinent information or
22documentation.
23    Whenever it determines that a payment is or may be required
24under this subsection (g), the System shall calculate the
25amount of the payment and bill the employer for that amount.
26The bill shall specify the calculations used to determine the

 

 

HB3376- 45 -LRB101 10847 RPS 55982 b

1amount due. If the employer disputes the amount of the bill, it
2may, within 30 days after receipt of the bill, apply to the
3System in writing for a recalculation. The application must
4specify in detail the grounds of the dispute and, if the
5employer asserts that the calculation is subject to subsection
6(h) or (i) of this Section or that subsection (g-1) applies,
7must include an affidavit setting forth and attesting to all
8facts within the employer's knowledge that are pertinent to the
9applicability of that subsection. Upon receiving a timely
10application for recalculation, the System shall review the
11application and, if appropriate, recalculate the amount due.
12    The employer contributions required under this subsection
13(g) may be paid in the form of a lump sum within 90 days after
14receipt of the bill. If the employer contributions are not paid
15within 90 days after receipt of the bill, then interest will be
16charged at a rate equal to the System's annual actuarially
17assumed rate of return on investment compounded annually from
18the 91st day after receipt of the bill. Payments must be
19concluded within 3 years after the employer's receipt of the
20bill.
21    When assessing payment for any amount due under this
22subsection (g), the System shall include earnings, to the
23extent not established by a participant under Section 15-113.11
24or 15-113.12, that would have been paid to the participant had
25the participant not taken (i) periods of voluntary or
26involuntary furlough occurring on or after July 1, 2015 and on

 

 

HB3376- 46 -LRB101 10847 RPS 55982 b

1or before June 30, 2017 or (ii) periods of voluntary pay
2reduction in lieu of furlough occurring on or after July 1,
32015 and on or before June 30, 2017. Determining earnings that
4would have been paid to a participant had the participant not
5taken periods of voluntary or involuntary furlough or periods
6of voluntary pay reduction shall be the responsibility of the
7employer, and shall be reported in a manner prescribed by the
8System.
9    This subsection (g) does not apply to (1) Tier 2 hybrid
10plan members and (2) Tier 2 defined benefit members who first
11participate under this Article on or after the implementation
12date of the Optional Hybrid Plan.
13    (g-1) For academic years beginning on or after July 1, 2018
14and for earnings paid to a participant under a contract or
15collective bargaining agreement entered into, amended, or
16renewed on or after June 4, 2018 (the effective date of Public
17Act 100-587) this amendatory Act of the 100th General Assembly,
18if the amount of a participant's earnings for any academic year
19used to determine the final rate of earnings, determined on a
20full-time equivalent basis, exceeds the amount of his or her
21earnings with the same employer for the previous academic year,
22determined on a full-time equivalent basis, by more than 3%,
23then the participant's employer shall pay to the System, in
24addition to all other payments required under this Section and
25in accordance with guidelines established by the System, the
26present value of the increase in benefits resulting from the

 

 

HB3376- 47 -LRB101 10847 RPS 55982 b

1portion of the increase in earnings that is in excess of 3%.
2This present value shall be computed by the System on the basis
3of the actuarial assumptions and tables used in the most recent
4actuarial valuation of the System that is available at the time
5of the computation. The System may require the employer to
6provide any pertinent information or documentation.
7    Whenever it determines that a payment is or may be required
8under this subsection (g-1), the System shall calculate the
9amount of the payment and bill the employer for that amount.
10The bill shall specify the calculations used to determine the
11amount due. If the employer disputes the amount of the bill, it
12may, within 30 days after receipt of the bill, apply to the
13System in writing for a recalculation. The application must
14specify in detail the grounds of the dispute and, if the
15employer asserts that subsection (g) of this Section applies,
16must include an affidavit setting forth and attesting to all
17facts within the employer's knowledge that are pertinent to the
18applicability of subsection (g). Upon receiving a timely
19application for recalculation, the System shall review the
20application and, if appropriate, recalculate the amount due.
21    The employer contributions required under this subsection
22(g-1) may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not paid
24within 90 days after receipt of the bill, then interest shall
25be charged at a rate equal to the System's annual actuarially
26assumed rate of return on investment compounded annually from

 

 

HB3376- 48 -LRB101 10847 RPS 55982 b

1the 91st day after receipt of the bill. Payments must be
2concluded within 3 years after the employer's receipt of the
3bill.
4    This subsection (g-1) does not apply to (1) Tier 2 hybrid
5plan members and (2) Tier 2 defined benefit members who first
6participate under this Article on or after the implementation
7date of the Optional Hybrid Plan.
8    (h) This subsection (h) applies only to payments made or
9salary increases given on or after June 1, 2005 but before July
101, 2011. The changes made by Public Act 94-1057 shall not
11require the System to refund any payments received before July
1231, 2006 (the effective date of Public Act 94-1057).
13    When assessing payment for any amount due under subsection
14(g), the System shall exclude earnings increases paid to
15participants under contracts or collective bargaining
16agreements entered into, amended, or renewed before June 1,
172005.
18    When assessing payment for any amount due under subsection
19(g), the System shall exclude earnings increases paid to a
20participant at a time when the participant is 10 or more years
21from retirement eligibility under Section 15-135.
22    When assessing payment for any amount due under subsection
23(g), the System shall exclude earnings increases resulting from
24overload work, including a contract for summer teaching, or
25overtime when the employer has certified to the System, and the
26System has approved the certification, that: (i) in the case of

 

 

HB3376- 49 -LRB101 10847 RPS 55982 b

1overloads (A) the overload work is for the sole purpose of
2academic instruction in excess of the standard number of
3instruction hours for a full-time employee occurring during the
4academic year that the overload is paid and (B) the earnings
5increases are equal to or less than the rate of pay for
6academic instruction computed using the participant's current
7salary rate and work schedule; and (ii) in the case of
8overtime, the overtime was necessary for the educational
9mission.
10    When assessing payment for any amount due under subsection
11(g), the System shall exclude any earnings increase resulting
12from (i) a promotion for which the employee moves from one
13classification to a higher classification under the State
14Universities Civil Service System, (ii) a promotion in academic
15rank for a tenured or tenure-track faculty position, or (iii) a
16promotion that the Illinois Community College Board has
17recommended in accordance with subsection (k) of this Section.
18These earnings increases shall be excluded only if the
19promotion is to a position that has existed and been filled by
20a member for no less than one complete academic year and the
21earnings increase as a result of the promotion is an increase
22that results in an amount no greater than the average salary
23paid for other similar positions.
24    (i) When assessing payment for any amount due under
25subsection (g), the System shall exclude any salary increase
26described in subsection (h) of this Section given on or after

 

 

HB3376- 50 -LRB101 10847 RPS 55982 b

1July 1, 2011 but before July 1, 2014 under a contract or
2collective bargaining agreement entered into, amended, or
3renewed on or after June 1, 2005 but before July 1, 2011.
4Notwithstanding any other provision of this Section, any
5payments made or salary increases given after June 30, 2014
6shall be used in assessing payment for any amount due under
7subsection (g) of this Section.
8    (j) The System shall prepare a report and file copies of
9the report with the Governor and the General Assembly by
10January 1, 2007 that contains all of the following information:
11        (1) The number of recalculations required by the
12    changes made to this Section by Public Act 94-1057 for each
13    employer.
14        (2) The dollar amount by which each employer's
15    contribution to the System was changed due to
16    recalculations required by Public Act 94-1057.
17        (3) The total amount the System received from each
18    employer as a result of the changes made to this Section by
19    Public Act 94-4.
20        (4) The increase in the required State contribution
21    resulting from the changes made to this Section by Public
22    Act 94-1057.
23    (j-5) For State fiscal years beginning on or after July 1,
242017, if the amount of a participant's earnings for any State
25fiscal year exceeds the amount of the salary set by law for the
26Governor that is in effect on July 1 of that fiscal year, the

 

 

HB3376- 51 -LRB101 10847 RPS 55982 b

1participant's employer shall pay to the System, in addition to
2all other payments required under this Section and in
3accordance with guidelines established by the System, an amount
4determined by the System to be equal to the employer normal
5cost, as established by the System and expressed as a total
6percentage of payroll, multiplied by the amount of earnings in
7excess of the amount of the salary set by law for the Governor.
8This amount shall be computed by the System on the basis of the
9actuarial assumptions and tables used in the most recent
10actuarial valuation of the System that is available at the time
11of the computation. The System may require the employer to
12provide any pertinent information or documentation.
13    Whenever it determines that a payment is or may be required
14under this subsection, the System shall calculate the amount of
15the payment and bill the employer for that amount. The bill
16shall specify the calculation used to determine the amount due.
17If the employer disputes the amount of the bill, it may, within
1830 days after receipt of the bill, apply to the System in
19writing for a recalculation. The application must specify in
20detail the grounds of the dispute. Upon receiving a timely
21application for recalculation, the System shall review the
22application and, if appropriate, recalculate the amount due.
23    The employer contributions required under this subsection
24may be paid in the form of a lump sum within 90 days after
25issuance of the bill. If the employer contributions are not
26paid within 90 days after issuance of the bill, then interest

 

 

HB3376- 52 -LRB101 10847 RPS 55982 b

1will be charged at a rate equal to the System's annual
2actuarially assumed rate of return on investment compounded
3annually from the 91st day after issuance of the bill. All
4payments must be received within 3 years after issuance of the
5bill. If the employer fails to make complete payment, including
6applicable interest, within 3 years, then the System may, after
7giving notice to the employer, certify the delinquent amount to
8the State Comptroller, and the Comptroller shall thereupon
9deduct the certified delinquent amount from State funds payable
10to the employer and pay them instead to the System.
11    This subsection (j-5) does not apply to a participant's
12earnings to the extent an employer pays the employer normal
13cost of such earnings.
14    The changes made to this subsection (j-5) by Public Act
15100-624 this amendatory Act of the 100th General Assembly are
16intended to apply retroactively to July 6, 2017 (the effective
17date of Public Act 100-23).
18    (k) The Illinois Community College Board shall adopt rules
19for recommending lists of promotional positions submitted to
20the Board by community colleges and for reviewing the
21promotional lists on an annual basis. When recommending
22promotional lists, the Board shall consider the similarity of
23the positions submitted to those positions recognized for State
24universities by the State Universities Civil Service System.
25The Illinois Community College Board shall file a copy of its
26findings with the System. The System shall consider the

 

 

HB3376- 53 -LRB101 10847 RPS 55982 b

1findings of the Illinois Community College Board when making
2determinations under this Section. The System shall not exclude
3any earnings increases resulting from a promotion when the
4promotion was not submitted by a community college. Nothing in
5this subsection (k) shall require any community college to
6submit any information to the Community College Board.
7    (l) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (m) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17;
23100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
 
24    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
25    Sec. 15-165. To certify amounts and submit vouchers.

 

 

HB3376- 54 -LRB101 10847 RPS 55982 b

1    (a) The Board shall certify to the Governor on or before
2November 15 of each year until November 15, 2011 the
3appropriation required from State funds for the purposes of
4this System for the following fiscal year. The certification
5under this subsection (a) shall include a copy of the actuarial
6recommendations upon which it is based and shall specifically
7identify the System's projected State normal cost for that
8fiscal year and the projected State cost for the self-managed
9plan for that fiscal year.
10    On or before May 1, 2004, the Board shall recalculate and
11recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2005, taking
13into account the amounts appropriated to and received by the
14System under subsection (d) of Section 7.2 of the General
15Obligation Bond Act.
16    On or before July 1, 2005, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2006, taking
19into account the changes in required State contributions made
20by this amendatory Act of the 94th General Assembly.
21    On or before April 1, 2011, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2011, applying
24the changes made by Public Act 96-889 to the System's assets
25and liabilities as of June 30, 2009 as though Public Act 96-889
26was approved on that date.

 

 

HB3376- 55 -LRB101 10847 RPS 55982 b

1    (a-5) On or before November 1 of each year, beginning
2November 1, 2012, the Board shall submit to the State Actuary,
3the Governor, and the General Assembly a proposed certification
4of the amount of the required State contribution to the System
5for the next fiscal year, along with all of the actuarial
6assumptions, calculations, and data upon which that proposed
7certification is based. On or before January 1 of each year,
8beginning January 1, 2013, the State Actuary shall issue a
9preliminary report concerning the proposed certification and
10identifying, if necessary, recommended changes in actuarial
11assumptions that the Board must consider before finalizing its
12certification of the required State contributions. On or before
13January 15, 2013 and each January 15 thereafter, the Board
14shall certify to the Governor and the General Assembly the
15amount of the required State contribution for the next fiscal
16year. The Board's certification must note, in a written
17response to the State Actuary, any deviations from the State
18Actuary's recommended changes, the reason or reasons for not
19following the State Actuary's recommended changes, and the
20fiscal impact of not following the State Actuary's recommended
21changes on the required State contribution.
22    (a-10) By November 1, 2017, the Board shall recalculate and
23recertify to the State Actuary, the Governor, and the General
24Assembly the amount of the State contribution to the System for
25State fiscal year 2018, taking into account the changes in
26required State contributions made by this amendatory Act of the

 

 

HB3376- 56 -LRB101 10847 RPS 55982 b

1100th General Assembly. The State Actuary shall review the
2assumptions and valuations underlying the Board's revised
3certification and issue a preliminary report concerning the
4proposed recertification and identifying, if necessary,
5recommended changes in actuarial assumptions that the Board
6must consider before finalizing its certification of the
7required State contributions. The Board's final certification
8must note any deviations from the State Actuary's recommended
9changes, the reason or reasons for not following the State
10Actuary's recommended changes, and the fiscal impact of not
11following the State Actuary's recommended changes on the
12required State contribution.
13    (a-15) On or after June 15, 2019, but no later than June
1430, 2019, the Board shall recalculate and recertify to the
15Governor and the General Assembly the amount of the State
16contribution to the System for State fiscal year 2019, taking
17into account the changes in required State contributions made
18by this amendatory Act of the 100th General Assembly. The
19recalculation shall be made using assumptions adopted by the
20Board for the original fiscal year 2019 certification. The
21monthly voucher for the 12th month of fiscal year 2019 shall be
22paid by the Comptroller after the recertification required
23pursuant to this subsection is submitted to the Governor,
24Comptroller, and General Assembly. The recertification
25submitted to the General Assembly shall be filed with the Clerk
26of the House of Representatives and the Secretary of the Senate

 

 

HB3376- 57 -LRB101 10847 RPS 55982 b

1in electronic form only, in the manner that the Clerk and the
2Secretary shall direct.
3    (a-20) By November 1, 2019, the Board shall recalculate and
4recertify to the State Actuary, the Governor, and the General
5Assembly the amount of the State contribution to the System for
6State fiscal year 2020, taking into account the changes in
7required State contributions made by this amendatory Act of the
8101st General Assembly. The State Actuary shall review the
9assumptions and valuations underlying the Board's revised
10certification and issue a preliminary report concerning the
11proposed recertification and identifying, if necessary,
12recommended changes in actuarial assumptions that the Board
13must consider before finalizing its certification of the
14required State contributions. The Board's final certification
15must note any deviations from the State Actuary's recommended
16changes, the reason or reasons for not following the State
17Actuary's recommended changes, and the fiscal impact of not
18following the State Actuary's recommended changes on the
19required State contribution.
20    (b) The Board shall certify to the State Comptroller or
21employer, as the case may be, from time to time, by its
22chairperson and secretary, with its seal attached, the amounts
23payable to the System from the various funds.
24    (c) Beginning in State fiscal year 1996, on or as soon as
25possible after the 15th day of each month the Board shall
26submit vouchers for payment of State contributions to the

 

 

HB3376- 58 -LRB101 10847 RPS 55982 b

1System, in a total monthly amount of one-twelfth of the
2required annual State contribution certified under subsection
3(a). From the effective date of this amendatory Act of the 93rd
4General Assembly through June 30, 2004, the Board shall not
5submit vouchers for the remainder of fiscal year 2004 in excess
6of the fiscal year 2004 certified contribution amount
7determined under this Section after taking into consideration
8the transfer to the System under subsection (b) of Section
96z-61 of the State Finance Act. These vouchers shall be paid by
10the State Comptroller and Treasurer by warrants drawn on the
11funds appropriated to the System for that fiscal year.
12    If in any month the amount remaining unexpended from all
13other appropriations to the System for the applicable fiscal
14year (including the appropriations to the System under Section
158.12 of the State Finance Act and Section 1 of the State
16Pension Funds Continuing Appropriation Act) is less than the
17amount lawfully vouchered under this Section, the difference
18shall be paid from the General Revenue Fund under the
19continuing appropriation authority provided in Section 1.1 of
20the State Pension Funds Continuing Appropriation Act.
21    (d) So long as the payments received are the full amount
22lawfully vouchered under this Section, payments received by the
23System under this Section shall be applied first toward the
24employer contribution to the self-managed plan established
25under Section 15-158.2. Payments shall be applied second toward
26the employer's portion of the normal costs of the System, as

 

 

HB3376- 59 -LRB101 10847 RPS 55982 b

1defined in subsection (f) of Section 15-155. The balance shall
2be applied toward the unfunded actuarial liabilities of the
3System.
4    (e) In the event that the System does not receive, as a
5result of legislative enactment or otherwise, payments
6sufficient to fully fund the employer contribution to the
7self-managed plan established under Section 15-158.2 and to
8fully fund that portion of the employer's portion of the normal
9costs of the System, as calculated in accordance with Section
1015-155(a-1), then any payments received shall be applied
11proportionately to the optional retirement program established
12under Section 15-158.2 and to the employer's portion of the
13normal costs of the System, as calculated in accordance with
14Section 15-155(a-1).
15(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
16    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
17    Sec. 16-158. Contributions by State and other employing
18units.
19    (a) The State shall make contributions to the System by
20means of appropriations from the Common School Fund and other
21State funds of amounts which, together with other employer
22contributions, employee contributions, investment income, and
23other income, will be sufficient to meet the cost of
24maintaining and administering the System on a 70% 90% funded
25basis in accordance with actuarial recommendations.

 

 

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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.
24    On or before April 1, 2011, the Board shall recalculate and
25recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2011, applying

 

 

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

 

 

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1State fiscal year 2018, taking into account the changes in
2required State contributions made by Public Act 100-23. The
3State Actuary shall review the assumptions and valuations
4underlying the Board's revised certification and issue a
5preliminary report concerning the proposed recertification and
6identifying, if necessary, recommended changes in actuarial
7assumptions that the Board must consider before finalizing its
8certification of the required State contributions. The Board's
9final certification must note any deviations from the State
10Actuary's recommended changes, the reason or reasons for not
11following the State Actuary's recommended changes, and the
12fiscal impact of not following the State Actuary's recommended
13changes on the required State contribution.
14    (a-15) On or after June 15, 2019, but no later than June
1530, 2019, the Board shall recalculate and recertify to the
16Governor and the General Assembly the amount of the State
17contribution to the System for State fiscal year 2019, taking
18into account the changes in required State contributions made
19by Public Act 100-587 this amendatory Act of the 100th General
20Assembly. The recalculation shall be made using assumptions
21adopted by the Board for the original fiscal year 2019
22certification. The monthly voucher for the 12th month of fiscal
23year 2019 shall be paid by the Comptroller after the
24recertification required pursuant to this subsection is
25submitted to the Governor, Comptroller, and General Assembly.
26The recertification submitted to the General Assembly shall be

 

 

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1filed with the Clerk of the House of Representatives and the
2Secretary of the Senate in electronic form only, in the manner
3that the Clerk and the Secretary shall direct.
4    (a-20) By November 1, 2019, the Board shall recalculate and
5recertify to the State Actuary, the Governor, and the General
6Assembly the amount of the State contribution to the System for
7State fiscal year 2020, taking into account the changes in
8required State contributions made by this amendatory Act of the
9101st General Assembly. The State Actuary shall review the
10assumptions and valuations underlying the Board's revised
11certification and issue a preliminary report concerning the
12proposed recertification and identifying, if necessary,
13recommended changes in actuarial assumptions that the Board
14must consider before finalizing its certification of the
15required State contributions. The Board's final certification
16must note any deviations from the State Actuary's recommended
17changes, the reason or reasons for not following the State
18Actuary's recommended changes, and the fiscal impact of not
19following the State Actuary's recommended changes on the
20required State contribution.
21    (b) Through State fiscal year 1995, the State contributions
22shall be paid to the System in accordance with Section 18-7 of
23the School Code.
24    (b-1) Beginning in State fiscal year 1996, on the 15th day
25of each month, or as soon thereafter as may be practicable, the
26Board shall submit vouchers for payment of State contributions

 

 

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1to the System, in a total monthly amount of one-twelfth of the
2required annual State contribution certified under subsection
3(a-1). From March 5, 2004 (the effective date of Public Act
493-665) through June 30, 2004, the Board shall not submit
5vouchers for the remainder of fiscal year 2004 in excess of the
6fiscal year 2004 certified contribution amount determined
7under this Section after taking into consideration the transfer
8to the System under subsection (a) of Section 6z-61 of the
9State Finance Act. These vouchers shall be paid by the State
10Comptroller and Treasurer by warrants drawn on the funds
11appropriated to the System for that fiscal year.
12    If in any month the amount remaining unexpended from all
13other appropriations to the System for the applicable fiscal
14year (including the appropriations to the System under Section
158.12 of the State Finance Act and Section 1 of the State
16Pension Funds Continuing Appropriation Act) is less than the
17amount lawfully vouchered under this subsection, the
18difference shall be paid from the Common School Fund under the
19continuing appropriation authority provided in Section 1.1 of
20the State Pension Funds Continuing Appropriation Act.
21    (b-2) Allocations from the Common School Fund apportioned
22to school districts not coming under this System shall not be
23diminished or affected by the provisions of this Article.
24    (b-3) For State fiscal years 2020 through 2045, the minimum
25contribution to the System to be made by the State for each
26fiscal year shall be an amount determined by the System to be

 

 

HB3376- 65 -LRB101 10847 RPS 55982 b

1equal to the sum of (1) the State's portion of the projected
2normal cost for that fiscal year, plus (2) an amount
3sufficient, in equal annual dollar amounts, to bring the total
4assets of the System up to 70% of the total actuarial
5liabilities of the System by the end of State fiscal year 2045.
6In making these determinations, the required State
7contribution shall be calculated each year as a level
8percentage of payroll over the years remaining to and including
9fiscal year 2045 and shall be determined under the projected
10unit credit actuarial cost method.
11    For State fiscal years 2012 through 2019 2045, the minimum
12contribution to the System to be made by the State for each
13fiscal year shall be an amount determined by the System to be
14sufficient to bring the total assets of the System up to 90% of
15the total actuarial liabilities of the System by the end of
16State fiscal year 2045. In making these determinations, the
17required State contribution shall be calculated each year as a
18level percentage of payroll over the years remaining to and
19including fiscal year 2045 and shall be determined under the
20projected unit credit actuarial cost method.
21    For each of State fiscal years 2018, 2019, and 2020, the
22State shall make an additional contribution to the System equal
23to 2% of the total payroll of each employee who is deemed to
24have elected the benefits under Section 1-161 or who has made
25the election under subsection (c) of Section 1-161.
26    A change in an actuarial or investment assumption that

 

 

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1increases or decreases the required State contribution and
2first applies in State fiscal year 2018 or thereafter shall be
3implemented in equal annual amounts over a 5-year period
4beginning in the State fiscal year in which the actuarial
5change first applies to the required State contribution.
6    A change in an actuarial or investment assumption that
7increases or decreases the required State contribution and
8first applied to the State contribution in fiscal year 2014,
92015, 2016, or 2017 shall be implemented:
10        (i) as already applied in State fiscal years before
11    2018; and
12        (ii) in the portion of the 5-year period beginning in
13    the State fiscal year in which the actuarial change first
14    applied that occurs in State fiscal year 2018 or
15    thereafter, by calculating the change in equal annual
16    amounts over that 5-year period and then implementing it at
17    the resulting annual rate in each of the remaining fiscal
18    years in that 5-year period.
19    For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section; except that in the
24following specified State fiscal years, the State contribution
25to the System shall not be less than the following indicated
26percentages of the applicable employee payroll, even if the

 

 

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1indicated percentage will produce a State contribution in
2excess of the amount otherwise required under this subsection
3and subsection (a), and notwithstanding any contrary
4certification made under subsection (a-1) before May 27, 1998
5(the effective date of Public Act 90-582): 10.02% in FY 1999;
610.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
7in FY 2003; and 13.56% in FY 2004.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2006 is
10$534,627,700.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2007 is
13$738,014,500.
14    For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2010 is
22$2,089,268,000 and shall be made from the proceeds of bonds
23sold in fiscal year 2010 pursuant to Section 7.2 of the General
24Obligation Bond Act, less (i) the pro rata share of bond sale
25expenses determined by the System's share of total bond
26proceeds, (ii) any amounts received from the Common School Fund

 

 

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1in fiscal year 2010, and (iii) any reduction in bond proceeds
2due to the issuance of discounted bonds, if applicable.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2011 is
5the amount recertified by the System on or before April 1, 2011
6pursuant to subsection (a-1) of this Section and shall be made
7from the proceeds of bonds sold in fiscal year 2011 pursuant to
8Section 7.2 of the General Obligation Bond Act, less (i) the
9pro rata share of bond sale expenses determined by the System's
10share of total bond proceeds, (ii) any amounts received from
11the Common School Fund in fiscal year 2011, and (iii) any
12reduction in bond proceeds due to the issuance of discounted
13bonds, if applicable. This amount shall include, in addition to
14the amount certified by the System, an amount necessary to meet
15employer contributions required by the State as an employer
16under paragraph (e) of this Section, which may also be used by
17the System for contributions required by paragraph (a) of
18Section 16-127.
19    Beginning in State fiscal year 2046, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 70% 90% of the total
22actuarial liabilities of the System.
23    Amounts received by the System pursuant to Section 25 of
24the Budget Stabilization Act or Section 8.12 of the State
25Finance Act in any fiscal year do not reduce and do not
26constitute payment of any portion of the minimum State

 

 

HB3376- 69 -LRB101 10847 RPS 55982 b

1contribution required under this Article in that fiscal year.
2Such amounts shall not reduce, and shall not be included in the
3calculation of, the required State contributions under this
4Article in any future year until the System has reached a
5funding ratio of at least 70% 90%. A reference in this Article
6to the "required State contribution" or any substantially
7similar term does not include or apply to any amounts payable
8to the System under Section 25 of the Budget Stabilization Act.
9    Notwithstanding any other provision of this Section, the
10required State contribution for State fiscal year 2005 and for
11fiscal year 2008 and each fiscal year thereafter, as calculated
12under this Section and certified under subsection (a-1), shall
13not exceed an amount equal to (i) the amount of the required
14State contribution that would have been calculated under this
15Section for that fiscal year if the System had not received any
16payments under subsection (d) of Section 7.2 of the General
17Obligation Bond Act, minus (ii) the portion of the State's
18total debt service payments for that fiscal year on the bonds
19issued in fiscal year 2003 for the purposes of that Section
207.2, as determined and certified by the Comptroller, that is
21the same as the System's portion of the total moneys
22distributed under subsection (d) of Section 7.2 of the General
23Obligation Bond Act. In determining this maximum for State
24fiscal years 2008 through 2010, however, the amount referred to
25in item (i) shall be increased, as a percentage of the
26applicable employee payroll, in equal increments calculated

 

 

HB3376- 70 -LRB101 10847 RPS 55982 b

1from the sum of the required State contribution for State
2fiscal year 2007 plus the applicable portion of the State's
3total debt service payments for fiscal year 2007 on the bonds
4issued in fiscal year 2003 for the purposes of Section 7.2 of
5the General Obligation Bond Act, so that, by State fiscal year
62011, the State is contributing at the rate otherwise required
7under this Section.
8    (b-4) Beginning in fiscal year 2018, each employer under
9this Article shall pay to the System a required contribution
10determined as a percentage of projected payroll and sufficient
11to produce an annual amount equal to:
12        (i) for each of fiscal years 2018, 2019, and 2020, the
13    defined benefit normal cost of the defined benefit plan,
14    less the employee contribution, for each employee of that
15    employer who has elected or who is deemed to have elected
16    the benefits under Section 1-161 or who has made the
17    election under subsection (b) of Section 1-161; for fiscal
18    year 2021 and each fiscal year thereafter, the defined
19    benefit normal cost of the defined benefit plan, less the
20    employee contribution, plus 2%, for each employee of that
21    employer who has elected or who is deemed to have elected
22    the benefits under Section 1-161 or who has made the
23    election under subsection (b) of Section 1-161; plus
24        (ii) the amount required for that fiscal year to
25    amortize any unfunded actuarial accrued liability
26    associated with the present value of liabilities

 

 

HB3376- 71 -LRB101 10847 RPS 55982 b

1    attributable to the employer's account under Section
2    16-158.3, determined as a level percentage of payroll over
3    a 30-year rolling amortization period.
4    In determining contributions required under item (i) of
5this subsection, the System shall determine an aggregate rate
6for all employers, expressed as a percentage of projected
7payroll.
8    In determining the contributions required under item (ii)
9of this subsection, the amount shall be computed by the System
10on the basis of the actuarial assumptions and tables used in
11the most recent actuarial valuation of the System that is
12available at the time of the computation.
13    The contributions required under this subsection (b-4)
14shall be paid by an employer concurrently with that employer's
15payroll payment period. The State, as the actual employer of an
16employee, shall make the required contributions under this
17subsection.
18    (c) Payment of the required State contributions and of all
19pensions, retirement annuities, death benefits, refunds, and
20other benefits granted under or assumed by this System, and all
21expenses in connection with the administration and operation
22thereof, are obligations of the State.
23    If members are paid from special trust or federal funds
24which are administered by the employing unit, whether school
25district or other unit, the employing unit shall pay to the
26System from such funds the full accruing retirement costs based

 

 

HB3376- 72 -LRB101 10847 RPS 55982 b

1upon that service, which, beginning July 1, 2017, shall be at a
2rate, expressed as a percentage of salary, equal to the total
3employer's normal cost, expressed as a percentage of payroll,
4as determined by the System. Employer contributions, based on
5salary paid to members from federal funds, may be forwarded by
6the distributing agency of the State of Illinois to the System
7prior to allocation, in an amount determined in accordance with
8guidelines established by such agency and the System. Any
9contribution for fiscal year 2015 collected as a result of the
10change made by Public Act 98-674 shall be considered a State
11contribution under subsection (b-3) of this Section.
12    (d) Effective July 1, 1986, any employer of a teacher as
13defined in paragraph (8) of Section 16-106 shall pay the
14employer's normal cost of benefits based upon the teacher's
15service, in addition to employee contributions, as determined
16by the System. Such employer contributions shall be forwarded
17monthly in accordance with guidelines established by the
18System.
19    However, with respect to benefits granted under Section
2016-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
21of Section 16-106, the employer's contribution shall be 12%
22(rather than 20%) of the member's highest annual salary rate
23for each year of creditable service granted, and the employer
24shall also pay the required employee contribution on behalf of
25the teacher. For the purposes of Sections 16-133.4 and
2616-133.5, a teacher as defined in paragraph (8) of Section

 

 

HB3376- 73 -LRB101 10847 RPS 55982 b

116-106 who is serving in that capacity while on leave of
2absence from another employer under this Article shall not be
3considered an employee of the employer from which the teacher
4is on leave.
5    (e) Beginning July 1, 1998, every employer of a teacher
6shall pay to the System an employer contribution computed as
7follows:
8        (1) Beginning July 1, 1998 through June 30, 1999, the
9    employer contribution shall be equal to 0.3% of each
10    teacher's salary.
11        (2) Beginning July 1, 1999 and thereafter, the employer
12    contribution shall be equal to 0.58% of each teacher's
13    salary.
14The school district or other employing unit may pay these
15employer contributions out of any source of funding available
16for that purpose and shall forward the contributions to the
17System on the schedule established for the payment of member
18contributions.
19    These employer contributions are intended to offset a
20portion of the cost to the System of the increases in
21retirement benefits resulting from Public Act 90-582.
22    Each employer of teachers is entitled to a credit against
23the contributions required under this subsection (e) with
24respect to salaries paid to teachers for the period January 1,
252002 through June 30, 2003, equal to the amount paid by that
26employer under subsection (a-5) of Section 6.6 of the State

 

 

HB3376- 74 -LRB101 10847 RPS 55982 b

1Employees Group Insurance Act of 1971 with respect to salaries
2paid to teachers for that period.
3    The additional 1% employee contribution required under
4Section 16-152 by Public Act 90-582 is the responsibility of
5the teacher and not the teacher's employer, unless the employer
6agrees, through collective bargaining or otherwise, to make the
7contribution on behalf of the teacher.
8    If an employer is required by a contract in effect on May
91, 1998 between the employer and an employee organization to
10pay, on behalf of all its full-time employees covered by this
11Article, all mandatory employee contributions required under
12this Article, then the employer shall be excused from paying
13the employer contribution required under this subsection (e)
14for the balance of the term of that contract. The employer and
15the employee organization shall jointly certify to the System
16the existence of the contractual requirement, in such form as
17the System may prescribe. This exclusion shall cease upon the
18termination, extension, or renewal of the contract at any time
19after May 1, 1998.
20    (f) For school years beginning on or after June 1, 2005 and
21before July 1, 2018 and for salary paid to a teacher under a
22contract or collective bargaining agreement entered into,
23amended, or renewed before June 4, 2018 (the effective date of
24Public Act 100-587) this amendatory Act of the 100th General
25Assembly, if the amount of a teacher's salary for any school
26year used to determine final average salary exceeds the

 

 

HB3376- 75 -LRB101 10847 RPS 55982 b

1member's annual full-time salary rate with the same employer
2for the previous school year by more than 6%, the teacher's
3employer shall pay to the System, in addition to all other
4payments required under this Section and in accordance with
5guidelines established by the System, the present value of the
6increase in benefits resulting from the portion of the increase
7in salary that is in excess of 6%. This present value shall be
8computed by the System on the basis of the actuarial
9assumptions and tables used in the most recent actuarial
10valuation of the System that is available at the time of the
11computation. If a teacher's salary for the 2005-2006 school
12year is used to determine final average salary under this
13subsection (f), then the changes made to this subsection (f) by
14Public Act 94-1057 shall apply in calculating whether the
15increase in his or her salary is in excess of 6%. For the
16purposes of this Section, change in employment under Section
1710-21.12 of the School Code on or after June 1, 2005 shall
18constitute a change in employer. The System may require the
19employer to provide any pertinent information or
20documentation. The changes made to this subsection (f) by
21Public Act 94-1111 apply without regard to whether the teacher
22was in service on or after its effective date.
23    Whenever it determines that a payment is or may be required
24under this subsection, the System shall calculate the amount of
25the payment and bill the employer for that amount. The bill
26shall specify the calculations used to determine the amount

 

 

HB3376- 76 -LRB101 10847 RPS 55982 b

1due. If the employer disputes the amount of the bill, it may,
2within 30 days after receipt of the bill, apply to the System
3in writing for a recalculation. The application must specify in
4detail the grounds of the dispute and, if the employer asserts
5that the calculation is subject to subsection (g) or (h) of
6this Section or that subsection (f-1) of this Section applies,
7must include an affidavit setting forth and attesting to all
8facts within the employer's knowledge that are pertinent to the
9applicability of that subsection. Upon receiving a timely
10application for recalculation, the System shall review the
11application and, if appropriate, recalculate the amount due.
12    The employer contributions required under this subsection
13(f) may be paid in the form of a lump sum within 90 days after
14receipt of the bill. If the employer contributions are not paid
15within 90 days after receipt of the bill, then interest will be
16charged at a rate equal to the System's annual actuarially
17assumed rate of return on investment compounded annually from
18the 91st day after receipt of the bill. Payments must be
19concluded within 3 years after the employer's receipt of the
20bill.
21    (f-1) For school years beginning on or after July 1, 2018
22and for salary paid to a teacher under a contract or collective
23bargaining agreement entered into, amended, or renewed on or
24after June 4, 2018 (the effective date of Public Act 100-587)
25this amendatory Act of the 100th General Assembly, if the
26amount of a teacher's salary for any school year used to

 

 

HB3376- 77 -LRB101 10847 RPS 55982 b

1determine final average salary exceeds the member's annual
2full-time salary rate with the same employer for the previous
3school year by more than 3%, then the teacher's employer shall
4pay to the System, in addition to all other payments required
5under this Section and in accordance with guidelines
6established by the System, the present value of the increase in
7benefits resulting from the portion of the increase in salary
8that is in excess of 3%. This present value shall be computed
9by the System on the basis of the actuarial assumptions and
10tables used in the most recent actuarial valuation of the
11System that is available at the time of the computation. The
12System may require the employer to provide any pertinent
13information or documentation.
14    Whenever it determines that a payment is or may be required
15under this subsection (f-1), the System shall calculate the
16amount of the payment and bill the employer for that amount.
17The bill shall specify the calculations used to determine the
18amount due. If the employer disputes the amount of the bill, it
19shall, within 30 days after receipt of the bill, apply to the
20System in writing for a recalculation. The application must
21specify in detail the grounds of the dispute and, if the
22employer asserts that subsection (f) of this Section applies,
23must include an affidavit setting forth and attesting to all
24facts within the employer's knowledge that are pertinent to the
25applicability of subsection (f). Upon receiving a timely
26application for recalculation, the System shall review the

 

 

HB3376- 78 -LRB101 10847 RPS 55982 b

1application and, if appropriate, recalculate the amount due.
2    The employer contributions required under this subsection
3(f-1) may be paid in the form of a lump sum within 90 days after
4receipt of the bill. If the employer contributions are not paid
5within 90 days after receipt of the bill, then interest shall
6be charged at a rate equal to the System's annual actuarially
7assumed rate of return on investment compounded annually from
8the 91st day after receipt of the bill. Payments must be
9concluded within 3 years after the employer's receipt of the
10bill.
11    (g) This subsection (g) applies only to payments made or
12salary increases given on or after June 1, 2005 but before July
131, 2011. The changes made by Public Act 94-1057 shall not
14require the System to refund any payments received before July
1531, 2006 (the effective date of Public Act 94-1057).
16    When assessing payment for any amount due under subsection
17(f), the System shall exclude salary increases paid to teachers
18under contracts or collective bargaining agreements entered
19into, amended, or renewed before June 1, 2005.
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude salary increases paid to a
22teacher at a time when the teacher is 10 or more years from
23retirement eligibility under Section 16-132 or 16-133.2.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude salary increases resulting from
26overload work, including summer school, when the school

 

 

HB3376- 79 -LRB101 10847 RPS 55982 b

1district has certified to the System, and the System has
2approved the certification, that (i) the overload work is for
3the sole purpose of classroom instruction in excess of the
4standard number of classes for a full-time teacher in a school
5district during a school year and (ii) the salary increases are
6equal to or less than the rate of pay for classroom instruction
7computed on the teacher's current salary and work schedule.
8    When assessing payment for any amount due under subsection
9(f), the System shall exclude a salary increase resulting from
10a promotion (i) for which the employee is required to hold a
11certificate or supervisory endorsement issued by the State
12Teacher Certification Board that is a different certification
13or supervisory endorsement than is required for the teacher's
14previous position and (ii) to a position that has existed and
15been filled by a member for no less than one complete academic
16year and the salary increase from the promotion is an increase
17that results in an amount no greater than the lesser of the
18average salary paid for other similar positions in the district
19requiring the same certification or the amount stipulated in
20the collective bargaining agreement for a similar position
21requiring the same certification.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude any payment to the teacher from
24the State of Illinois or the State Board of Education over
25which the employer does not have discretion, notwithstanding
26that the payment is included in the computation of final

 

 

HB3376- 80 -LRB101 10847 RPS 55982 b

1average salary.
2    (h) When assessing payment for any amount due under
3subsection (f), the System shall exclude any salary increase
4described in subsection (g) of this Section given on or after
5July 1, 2011 but before July 1, 2014 under a contract or
6collective bargaining agreement entered into, amended, or
7renewed on or after June 1, 2005 but before July 1, 2011.
8Notwithstanding any other provision of this Section, any
9payments made or salary increases given after June 30, 2014
10shall be used in assessing payment for any amount due under
11subsection (f) of this Section.
12    (i) The System shall prepare a report and file copies of
13the report with the Governor and the General Assembly by
14January 1, 2007 that contains all of the following information:
15        (1) The number of recalculations required by the
16    changes made to this Section by Public Act 94-1057 for each
17    employer.
18        (2) The dollar amount by which each employer's
19    contribution to the System was changed due to
20    recalculations required by Public Act 94-1057.
21        (3) The total amount the System received from each
22    employer as a result of the changes made to this Section by
23    Public Act 94-4.
24        (4) The increase in the required State contribution
25    resulting from the changes made to this Section by Public
26    Act 94-1057.

 

 

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1    (i-5) For school years beginning on or after July 1, 2017,
2if the amount of a participant's salary for any school year
3exceeds the amount of the salary set for the Governor, the
4participant's employer shall pay to the System, in addition to
5all other payments required under this Section and in
6accordance with guidelines established by the System, an amount
7determined by the System to be equal to the employer normal
8cost, as established by the System and expressed as a total
9percentage of payroll, multiplied by the amount of salary in
10excess of the amount of the salary set for the Governor. This
11amount shall be computed by the System on the basis of the
12actuarial assumptions and tables used in the most recent
13actuarial valuation of the System that is available at the time
14of the computation. The System may require the employer to
15provide any pertinent information or documentation.
16    Whenever it determines that a payment is or may be required
17under this subsection, the System shall calculate the amount of
18the payment and bill the employer for that amount. The bill
19shall specify the calculations used to determine the amount
20due. If the employer disputes the amount of the bill, it may,
21within 30 days after receipt of the bill, apply to the System
22in writing for a recalculation. The application must specify in
23detail the grounds of the dispute. Upon receiving a timely
24application for recalculation, the System shall review the
25application and, if appropriate, recalculate the amount due.
26    The employer contributions required under this subsection

 

 

HB3376- 82 -LRB101 10847 RPS 55982 b

1may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not paid
3within 90 days after receipt of the bill, then interest will be
4charged at a rate equal to the System's annual actuarially
5assumed rate of return on investment compounded annually from
6the 91st day after receipt of the bill. Payments must be
7concluded within 3 years after the employer's receipt of the
8bill.
9    (j) For purposes of determining the required State
10contribution to the System, the value of the System's assets
11shall be equal to the actuarial value of the System's assets,
12which shall be calculated as follows:
13    As of June 30, 2008, the actuarial value of the System's
14assets shall be equal to the market value of the assets as of
15that date. In determining the actuarial value of the System's
16assets for fiscal years after June 30, 2008, any actuarial
17gains or losses from investment return incurred in a fiscal
18year shall be recognized in equal annual amounts over the
195-year period following that fiscal year.
20    (k) For purposes of determining the required State
21contribution to the system for a particular year, the actuarial
22value of assets shall be assumed to earn a rate of return equal
23to the system's actuarially assumed rate of return.
24(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
25100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
268-14-18; revised 10-4-18.)
 

 

 

HB3376- 83 -LRB101 10847 RPS 55982 b

1    (40 ILCS 5/18-131)  (from Ch. 108 1/2, par. 18-131)
2    Sec. 18-131. Financing; employer contributions.
3    (a) The State of Illinois shall make contributions to this
4System by appropriations of the amounts which, together with
5the contributions of participants, net earnings on
6investments, and other income, will meet the costs of
7maintaining and administering this System on a 70% 90% funded
8basis in accordance with actuarial recommendations.
9    (b) The Board shall determine the amount of State
10contributions required for each fiscal year on the basis of the
11actuarial tables and other assumptions adopted by the Board and
12the prescribed rate of interest, using the formula in
13subsection (c).
14    (c) For State fiscal years 2020 through 2045, the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17equal to the sum of (1) the State's portion of the projected
18normal cost for that fiscal year, plus (2) an amount
19sufficient, in equal annual dollar amounts, to bring the total
20assets of the System up to 70% of the total actuarial
21liabilities of the System by the end of State fiscal year 2045.
22In making these determinations, the required State
23contribution shall be calculated each year as a level
24percentage of payroll over the years remaining to and including
25fiscal year 2045 and shall be determined under the projected

 

 

HB3376- 84 -LRB101 10847 RPS 55982 b

1unit credit actuarial cost method.
2    For State fiscal years 2012 through 2019 2045, the minimum
3contribution to the System to be made by the State for each
4fiscal year shall be an amount determined by the System to be
5sufficient to bring the total assets of the System up to 90% of
6the total actuarial liabilities of the System by the end of
7State fiscal year 2045. In making these determinations, the
8required State contribution shall be calculated each year as a
9level percentage of payroll over the years remaining to and
10including fiscal year 2045 and shall be determined under the
11projected unit credit actuarial cost method.
12    A change in an actuarial or investment assumption that
13increases or decreases the required State contribution and
14first applies in State fiscal year 2018 or thereafter shall be
15implemented in equal annual amounts over a 5-year period
16beginning in the State fiscal year in which the actuarial
17change first applies to the required State contribution.
18    A change in an actuarial or investment assumption that
19increases or decreases the required State contribution and
20first applied to the State contribution in fiscal year 2014,
212015, 2016, or 2017 shall be implemented:
22        (i) as already applied in State fiscal years before
23    2018; and
24        (ii) in the portion of the 5-year period beginning in
25    the State fiscal year in which the actuarial change first
26    applied that occurs in State fiscal year 2018 or

 

 

HB3376- 85 -LRB101 10847 RPS 55982 b

1    thereafter, by calculating the change in equal annual
2    amounts over that 5-year period and then implementing it at
3    the resulting annual rate in each of the remaining fiscal
4    years in that 5-year period.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2006 is
12$29,189,400.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$35,236,800.
16    For each of State fiscal years 2008 through 2009, the State
17contribution to the System, as a percentage of the applicable
18employee payroll, shall be increased in equal annual increments
19from the required State contribution for State fiscal year
202007, so that by State fiscal year 2011, the State is
21contributing at the rate otherwise required under this Section.
22    Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010 is
24$78,832,000 and shall be made from the proceeds of bonds sold
25in fiscal year 2010 pursuant to Section 7.2 of the General
26Obligation Bond Act, less (i) the pro rata share of bond sale

 

 

HB3376- 86 -LRB101 10847 RPS 55982 b

1expenses determined by the System's share of total bond
2proceeds, (ii) any amounts received from the General Revenue
3Fund in fiscal year 2010, and (iii) any reduction in bond
4proceeds due to the issuance of discounted bonds, if
5applicable.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2011 is
8the amount recertified by the System on or before April 1, 2011
9pursuant to Section 18-140 and shall be made from the proceeds
10of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
11the General Obligation Bond Act, less (i) the pro rata share of
12bond sale expenses determined by the System's share of total
13bond proceeds, (ii) any amounts received from the General
14Revenue Fund in fiscal year 2011, and (iii) any reduction in
15bond proceeds due to the issuance of discounted bonds, if
16applicable.
17    Beginning in State fiscal year 2046, the minimum State
18contribution for each fiscal year shall be the amount needed to
19maintain the total assets of the System at 70% 90% of the total
20actuarial liabilities of the System.
21    Amounts received by the System pursuant to Section 25 of
22the Budget Stabilization Act or Section 8.12 of the State
23Finance Act in any fiscal year do not reduce and do not
24constitute payment of any portion of the minimum State
25contribution required under this Article in that fiscal year.
26Such amounts shall not reduce, and shall not be included in the

 

 

HB3376- 87 -LRB101 10847 RPS 55982 b

1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 70% 90%. A reference in this Article
4to the "required State contribution" or any substantially
5similar term does not include or apply to any amounts payable
6to the System under Section 25 of the Budget Stabilization Act.
7    Notwithstanding any other provision of this Section, the
8required State contribution for State fiscal year 2005 and for
9fiscal year 2008 and each fiscal year thereafter, as calculated
10under this Section and certified under Section 18-140, shall
11not exceed an amount equal to (i) the amount of the required
12State contribution that would have been calculated under this
13Section for that fiscal year if the System had not received any
14payments under subsection (d) of Section 7.2 of the General
15Obligation Bond Act, minus (ii) the portion of the State's
16total debt service payments for that fiscal year on the bonds
17issued in fiscal year 2003 for the purposes of that Section
187.2, as determined and certified by the Comptroller, that is
19the same as the System's portion of the total moneys
20distributed under subsection (d) of Section 7.2 of the General
21Obligation Bond Act. In determining this maximum for State
22fiscal years 2008 through 2010, however, the amount referred to
23in item (i) shall be increased, as a percentage of the
24applicable employee payroll, in equal increments calculated
25from the sum of the required State contribution for State
26fiscal year 2007 plus the applicable portion of the State's

 

 

HB3376- 88 -LRB101 10847 RPS 55982 b

1total debt service payments for fiscal year 2007 on the bonds
2issued in fiscal year 2003 for the purposes of Section 7.2 of
3the General Obligation Bond Act, so that, by State fiscal year
42011, the State is contributing at the rate otherwise required
5under this Section.
6    (d) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (e) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 100-23, eff. 7-6-17.)
 
22    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
23    Sec. 18-140. To certify required State contributions and
24submit vouchers.
25    (a) The Board shall certify to the Governor, on or before

 

 

HB3376- 89 -LRB101 10847 RPS 55982 b

1November 15 of each year until November 15, 2011, the amount of
2the required State contribution to the System for the following
3fiscal year and shall specifically identify the System's
4projected State normal cost for that fiscal year. The
5certification shall include a copy of the actuarial
6recommendations upon which it is based and shall specifically
7identify the System's projected State normal cost for that
8fiscal year.
9    On or before November 1 of each year, beginning November 1,
102012, the Board shall submit to the State Actuary, the
11Governor, and the General Assembly a proposed certification of
12the amount of the required State contribution to the System for
13the next fiscal year, along with all of the actuarial
14assumptions, calculations, and data upon which that proposed
15certification is based. On or before January 1 of each year
16beginning January 1, 2013, the State Actuary shall issue a
17preliminary report concerning the proposed certification and
18identifying, if necessary, recommended changes in actuarial
19assumptions that the Board must consider before finalizing its
20certification of the required State contributions. On or before
21January 15, 2013 and every January 15 thereafter, the Board
22shall certify to the Governor and the General Assembly the
23amount of the required State contribution for the next fiscal
24year. The Board's certification must note any deviations from
25the State Actuary's recommended changes, the reason or reasons
26for not following the State Actuary's recommended changes, and

 

 

HB3376- 90 -LRB101 10847 RPS 55982 b

1the fiscal impact of not following the State Actuary's
2recommended changes on the required State contribution.
3    On or before May 1, 2004, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2005, taking
6into account the amounts appropriated to and received by the
7System under subsection (d) of Section 7.2 of the General
8Obligation Bond Act.
9    On or before July 1, 2005, the Board shall recalculate and
10recertify to the Governor the amount of the required State
11contribution to the System for State fiscal year 2006, taking
12into account the changes in required State contributions made
13by this amendatory Act of the 94th General Assembly.
14    On or before April 1, 2011, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2011, applying
17the changes made by Public Act 96-889 to the System's assets
18and liabilities as of June 30, 2009 as though Public Act 96-889
19was approved on that date.
20    By November 1, 2017, the Board shall recalculate and
21recertify to the State Actuary, the Governor, and the General
22Assembly the amount of the State contribution to the System for
23State fiscal year 2018, taking into account the changes in
24required State contributions made by this amendatory Act of the
25100th General Assembly. The State Actuary shall review the
26assumptions and valuations underlying the Board's revised

 

 

HB3376- 91 -LRB101 10847 RPS 55982 b

1certification and issue a preliminary report concerning the
2proposed recertification and identifying, if necessary,
3recommended changes in actuarial assumptions that the Board
4must consider before finalizing its certification of the
5required State contributions. The Board's final certification
6must note any deviations from the State Actuary's recommended
7changes, the reason or reasons for not following the State
8Actuary's recommended changes, and the fiscal impact of not
9following the State Actuary's recommended changes on the
10required State contribution.
11    By November 1, 2019, the Board shall recalculate and
12recertify to the State Actuary, the Governor, and the General
13Assembly the amount of the State contribution to the System for
14State fiscal year 2020, taking into account the changes in
15required State contributions made by this amendatory Act of the
16101st General Assembly. The State Actuary shall review the
17assumptions and valuations underlying the Board's revised
18certification and issue a preliminary report concerning the
19proposed recertification and identifying, if necessary,
20recommended changes in actuarial assumptions that the Board
21must consider before finalizing its certification of the
22required State contributions. The Board's final certification
23must note any deviations from the State Actuary's recommended
24changes, the reason or reasons for not following the State
25Actuary's recommended changes, and the fiscal impact of not
26following the State Actuary's recommended changes on the

 

 

HB3376- 92 -LRB101 10847 RPS 55982 b

1required State contribution.
2    (b) Beginning in State fiscal year 1996, on or as soon as
3possible after the 15th day of each month the Board shall
4submit vouchers for payment of State contributions to the
5System, in a total monthly amount of one-twelfth of the
6required annual State contribution certified under subsection
7(a). From the effective date of this amendatory Act of the 93rd
8General Assembly through June 30, 2004, the Board shall not
9submit vouchers for the remainder of fiscal year 2004 in excess
10of the fiscal year 2004 certified contribution amount
11determined under this Section after taking into consideration
12the transfer to the System under subsection (c) of Section
136z-61 of the State Finance Act. These vouchers shall be paid by
14the State Comptroller and Treasurer by warrants drawn on the
15funds appropriated to the System for that fiscal year.
16    If in any month the amount remaining unexpended from all
17other appropriations to the System for the applicable fiscal
18year (including the appropriations to the System under Section
198.12 of the State Finance Act and Section 1 of the State
20Pension Funds Continuing Appropriation Act) is less than the
21amount lawfully vouchered under this Section, the difference
22shall be paid from the General Revenue Fund under the
23continuing appropriation authority provided in Section 1.1 of
24the State Pension Funds Continuing Appropriation Act.
25(Source: P.A. 100-23, eff. 7-6-17.)
 

 

 

HB3376- 93 -LRB101 10847 RPS 55982 b

1    Section 25. The School Code is amended by adding Section
22-3.176 as follows:
 
3    (105 ILCS 5/2-3.176 new)
4    Sec. 2-3.176. Grants to school districts. Beginning State
5fiscal year 2021, the State Board of Education shall make
6grants to school districts from the Property Tax Relief and
7Pension Stabilization Fund to each school district on an equal
8per-pupil basis. A school district that receives a grant shall
9certify the amount of the grant to the county clerk.
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.43 as follows:
 
12    (30 ILCS 805/8.43 new)
13    Sec. 8.43. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 101st General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.

 

 

HB3376- 94 -LRB101 10847 RPS 55982 b

1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 20/50-21 new
4    30 ILCS 105/5.891 new
5    30 ILCS 105/6z-107 new
6    35 ILCS 200/18-45
7    40 ILCS 5/1-103.3
8    40 ILCS 5/2-124from Ch. 108 1/2, par. 2-124
9    40 ILCS 5/2-134from Ch. 108 1/2, par. 2-134
10    40 ILCS 5/14-131
11    40 ILCS 5/14-135.08from Ch. 108 1/2, par. 14-135.08
12    40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
13    40 ILCS 5/15-165from Ch. 108 1/2, par. 15-165
14    40 ILCS 5/16-158from Ch. 108 1/2, par. 16-158
15    40 ILCS 5/18-131from Ch. 108 1/2, par. 18-131
16    40 ILCS 5/18-140from Ch. 108 1/2, par. 18-140
17    105 ILCS 5/2-3.176 new
18    30 ILCS 805/8.43 new