101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1948

 

Introduced 2/15/2019, by Sen. Jil Tracy

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-155  from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158  from Ch. 108 1/2, par. 16-158

    Amends the Illinois Pension Code. In a provision of the State Universities Article that requires an employer to make an additional contribution to the System for certain salary increases greater than 3%, excludes salary increases resulting from overload work or a promotion if certain requirements are met. In a provision of the Downstate Teachers Article that requires an employer to make an additional contribution to the System for certain salary increases greater than 3%, excludes payments made to an individual who holds a professional educator license endorsed for any area of career and technical education or an educator license with stipulations endorsed for any area of career and technical education and excludes salary increases resulting from overload work or a promotion if certain requirements are met or resulting from duties as a coach or advisor for an extracurricular activity. Makes conforming changes. Effective immediately.


LRB101 11187 RPS 56430 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1948LRB101 11187 RPS 56430 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 15-155 and 16-158 as follows:
 
6    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
7    Sec. 15-155. Employer contributions.
8    (a) The State of Illinois shall make contributions by
9appropriations of amounts which, together with the other
10employer contributions from trust, federal, and other funds,
11employee contributions, income from investments, and other
12income of this System, will be sufficient to meet the cost of
13maintaining and administering the System on a 90% funded basis
14in accordance with actuarial recommendations.
15    The Board shall determine the amount of State contributions
16required for each fiscal year on the basis of the actuarial
17tables and other assumptions adopted by the Board and the
18recommendations of the actuary, using the formula in subsection
19(a-1).
20    (a-1) For State fiscal years 2012 through 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of

 

 

SB1948- 2 -LRB101 11187 RPS 56430 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    For each of State fiscal years 2018, 2019, and 2020, the
8State shall make an additional contribution to the System equal
9to 2% of the total payroll of each employee who is deemed to
10have elected the benefits under Section 1-161 or who has made
11the election under subsection (c) of Section 1-161.
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

 

 

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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$166,641,900.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2007 is
15$252,064,100.
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$702,514,000 and shall be made from the State Pensions Fund and
25proceeds of bonds sold in fiscal year 2010 pursuant to Section
267.2 of the General Obligation Bond Act, less (i) the pro rata

 

 

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1share of bond sale expenses determined by the System's share of
2total bond proceeds, (ii) any amounts received from the General
3Revenue Fund in fiscal year 2010, (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 15-165 and shall be made from the State
10Pensions Fund and proceeds of bonds sold in fiscal year 2011
11pursuant to Section 7.2 of the General Obligation Bond Act,
12less (i) the pro rata share of bond sale expenses determined by
13the System's share of total bond proceeds, (ii) any amounts
14received from the General Revenue Fund in fiscal year 2011, and
15(iii) any reduction in bond proceeds due to the issuance of
16discounted bonds, if applicable.
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 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

 

 

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1calculation of, the required State contributions under this
2Article in any future year until the System has reached a
3funding ratio of at least 90%. A reference in this Article to
4the "required State contribution" or any substantially similar
5term does not include or apply to any amounts payable to the
6System 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 15-165, 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

 

 

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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    (a-2) Beginning in fiscal year 2018, each employer under
7this Article shall pay to the System a required contribution
8determined as a percentage of projected payroll and sufficient
9to produce an annual amount equal to:
10        (i) for each of fiscal years 2018, 2019, and 2020, the
11    defined benefit normal cost of the defined benefit plan,
12    less the employee contribution, for each employee of that
13    employer who has elected or who is deemed to have elected
14    the benefits under Section 1-161 or who has made the
15    election under subsection (c) of Section 1-161; for fiscal
16    year 2021 and each fiscal year thereafter, the defined
17    benefit normal cost of the defined benefit plan, less the
18    employee contribution, plus 2%, 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; plus
22        (ii) the amount required for that fiscal year to
23    amortize any unfunded actuarial accrued liability
24    associated with the present value of liabilities
25    attributable to the employer's account under Section
26    15-155.2, determined as a level percentage of payroll over

 

 

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1    a 30-year rolling amortization period.
2    In determining contributions required under item (i) of
3this subsection, the System shall determine an aggregate rate
4for all employers, expressed as a percentage of projected
5payroll.
6    In determining the contributions required under item (ii)
7of this subsection, the amount shall be computed by the System
8on the basis of the actuarial assumptions and tables used in
9the most recent actuarial valuation of the System that is
10available at the time of the computation.
11    The contributions required under this subsection (a-2)
12shall be paid by an employer concurrently with that employer's
13payroll payment period. The State, as the actual employer of an
14employee, shall make the required contributions under this
15subsection.
16    As used in this subsection, "academic year" means the
1712-month period beginning September 1.
18    (b) If an employee is paid from trust or federal funds, the
19employer shall pay to the Board contributions from those funds
20which are sufficient to cover the accruing normal costs on
21behalf of the employee. However, universities having employees
22who are compensated out of local auxiliary funds, income funds,
23or service enterprise funds are not required to pay such
24contributions on behalf of those employees. The local auxiliary
25funds, income funds, and service enterprise funds of
26universities shall not be considered trust funds for the

 

 

SB1948- 8 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 9 -LRB101 11187 RPS 56430 b

1contributions for Class I community colleges covering earnings
2other than those paid from trust and federal funds, shall be
3payable solely from appropriations to the Illinois Community
4College Board or the System for employer contributions.
5    (d) Beginning in State fiscal year 1996, the required State
6contributions to the System shall be appropriated directly to
7the System and shall be payable through vouchers issued in
8accordance with subsection (c) of Section 15-165, except as
9provided in subsection (g).
10    (e) The State Comptroller shall draw warrants payable to
11the System upon proper certification by the System or by the
12employer in accordance with the appropriation laws and this
13Code.
14    (f) Normal costs under this Section means liability for
15pensions and other benefits which accrues to the System because
16of the credits earned for service rendered by the participants
17during the fiscal year and expenses of administering the
18System, but shall not include the principal of or any
19redemption premium or interest on any bonds issued by the Board
20or any expenses incurred or deposits required in connection
21therewith.
22    (g) For academic years beginning on or after June 1, 2005
23and before July 1, 2018 and for earnings paid to a participant
24under a contract or collective bargaining agreement entered
25into, amended, or renewed before June 4, 2018 (the effective
26date of Public Act 100-587) this amendatory Act of the 100th

 

 

SB1948- 10 -LRB101 11187 RPS 56430 b

1General Assembly, if the amount of a participant's earnings for
2any academic year used to determine the final rate of earnings,
3determined on a full-time equivalent basis, exceeds the amount
4of his or her earnings with the same employer for the previous
5academic year, determined on a full-time equivalent basis, by
6more than 6%, the participant's employer shall pay to the
7System, in addition to all other payments required under this
8Section and in accordance with guidelines established by the
9System, the present value of the increase in benefits resulting
10from the portion of the increase in earnings that is in excess
11of 6%. This present value shall be computed by the System on
12the basis of the actuarial assumptions and tables used in the
13most recent actuarial valuation of the System that is available
14at the time of the computation. The System may require the
15employer to provide any pertinent information or
16documentation.
17    Whenever it determines that a payment is or may be required
18under this subsection (g), the System shall calculate the
19amount of the payment and bill the employer for that amount.
20The bill shall specify the calculations used to determine the
21amount due. If the employer disputes the amount of the bill, it
22may, within 30 days after receipt of the bill, apply to the
23System in writing for a recalculation. The application must
24specify in detail the grounds of the dispute and, if the
25employer asserts that the calculation is subject to subsection
26(h) or (i) of this Section or that subsection (g-1) applies,

 

 

SB1948- 11 -LRB101 11187 RPS 56430 b

1must include an affidavit setting forth and attesting to all
2facts within the employer's knowledge that are pertinent to the
3applicability of that subsection. Upon receiving a timely
4application for recalculation, the System shall review the
5application and, if appropriate, recalculate the amount due.
6    The employer contributions required under this subsection
7(g) may be paid in the form of a lump sum within 90 days after
8receipt of the bill. If the employer contributions are not paid
9within 90 days after receipt of the bill, then interest will be
10charged at a rate equal to the System's annual actuarially
11assumed rate of return on investment compounded annually from
12the 91st day after receipt of the bill. Payments must be
13concluded within 3 years after the employer's receipt of the
14bill.
15    When assessing payment for any amount due under this
16subsection (g), the System shall include earnings, to the
17extent not established by a participant under Section 15-113.11
18or 15-113.12, that would have been paid to the participant had
19the participant not taken (i) periods of voluntary or
20involuntary furlough occurring on or after July 1, 2015 and on
21or before June 30, 2017 or (ii) periods of voluntary pay
22reduction in lieu of furlough occurring on or after July 1,
232015 and on or before June 30, 2017. Determining earnings that
24would have been paid to a participant had the participant not
25taken periods of voluntary or involuntary furlough or periods
26of voluntary pay reduction shall be the responsibility of the

 

 

SB1948- 12 -LRB101 11187 RPS 56430 b

1employer, and shall be reported in a manner prescribed by the
2System.
3    This subsection (g) does not apply to (1) Tier 2 hybrid
4plan members and (2) Tier 2 defined benefit members who first
5participate under this Article on or after the implementation
6date of the Optional Hybrid Plan.
7    (g-1) For academic years beginning on or after July 1, 2018
8and for earnings paid to a participant under a contract or
9collective bargaining agreement entered into, amended, or
10renewed on or after June 4, 2018 (the effective date of Public
11Act 100-587) this amendatory Act of the 100th General Assembly,
12if the amount of a participant's earnings for any academic year
13used to determine the final rate of earnings, determined on a
14full-time equivalent basis, exceeds the amount of his or her
15earnings with the same employer for the previous academic year,
16determined on a full-time equivalent basis, by more than 3%,
17then the participant's employer shall pay to the System, in
18addition to all other payments required under this Section and
19in accordance with guidelines established by the System, the
20present value of the increase in benefits resulting from the
21portion of the increase in earnings that is in excess of 3%.
22This present value shall be computed by the System on the basis
23of the actuarial assumptions and tables used in the most recent
24actuarial valuation of the System that is available at the time
25of the computation. The System may require the employer to
26provide any pertinent information or documentation.

 

 

SB1948- 13 -LRB101 11187 RPS 56430 b

1    Whenever it determines that a payment is or may be required
2under this subsection (g-1), the System shall calculate the
3amount of the payment and bill the employer for that amount.
4The bill shall specify the calculations used to determine the
5amount due. If the employer disputes the amount of the bill, it
6may, within 30 days after receipt of the bill, apply to the
7System in writing for a recalculation. The application must
8specify in detail the grounds of the dispute and, if the
9employer asserts that subsection (g) or (h-1) of this Section
10applies, must include an affidavit setting forth and attesting
11to all facts within the employer's knowledge that are pertinent
12to the applicability of that subsection (g). Upon receiving a
13timely application for recalculation, the System shall review
14the application and, if appropriate, recalculate the amount
15due.
16    The employer contributions required under this subsection
17(g-1) may be paid in the form of a lump sum within 90 days after
18receipt of the bill. If the employer contributions are not paid
19within 90 days after receipt of the bill, then interest shall
20be charged at a rate equal to the System's annual actuarially
21assumed rate of return on investment compounded annually from
22the 91st day after receipt of the bill. Payments must be
23concluded within 3 years after the employer's receipt of the
24bill.
25    This subsection (g-1) does not apply to (1) Tier 2 hybrid
26plan members and (2) Tier 2 defined benefit members who first

 

 

SB1948- 14 -LRB101 11187 RPS 56430 b

1participate under this Article on or after the implementation
2date of the Optional Hybrid Plan.
3    (h) This subsection (h) applies only to payments made or
4salary increases given on or after June 1, 2005 but before July
51, 2011. The changes made by Public Act 94-1057 shall not
6require the System to refund any payments received before July
731, 2006 (the effective date of Public Act 94-1057).
8    When assessing payment for any amount due under subsection
9(g), the System shall exclude earnings increases paid to
10participants under contracts or collective bargaining
11agreements entered into, amended, or renewed before June 1,
122005.
13    When assessing payment for any amount due under subsection
14(g), the System shall exclude earnings increases paid to a
15participant at a time when the participant is 10 or more years
16from retirement eligibility under Section 15-135.
17    When assessing payment for any amount due under subsection
18(g), the System shall exclude earnings increases resulting from
19overload work, including a contract for summer teaching, or
20overtime when the employer has certified to the System, and the
21System has approved the certification, that: (i) in the case of
22overloads (A) the overload work is for the sole purpose of
23academic instruction in excess of the standard number of
24instruction hours for a full-time employee occurring during the
25academic year that the overload is paid and (B) the earnings
26increases are equal to or less than the rate of pay for

 

 

SB1948- 15 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 16 -LRB101 11187 RPS 56430 b

1during the academic year that the overload is paid and (B) the
2earnings increases are equal to or less than the rate of pay
3for academic instruction computed using the participant's
4current salary rate and work schedule; and (ii) in the case of
5overtime, the overtime was necessary for the educational
6mission.
7    When assessing payment for any amount due under subsection
8(g-1), the System shall exclude any earnings increase resulting
9from (i) a promotion for which the employee moves from one
10classification to a higher classification under the State
11Universities Civil Service System, (ii) a promotion in academic
12rank for a tenured or tenure-track faculty position, or (iii) a
13promotion that the Illinois Community College Board has
14recommended in accordance with subsection (k) of this Section.
15These earnings increases shall be excluded only if the
16promotion is to a position that has existed and been filled by
17a member for no less than one complete academic year and the
18earnings increase as a result of the promotion is an increase
19that results in an amount no greater than the average salary
20paid for other similar positions.
21    (i) When assessing payment for any amount due under
22subsection (g), the System shall exclude any salary increase
23described in subsection (h) of this Section given on or after
24July 1, 2011 but before July 1, 2014 under a contract or
25collective bargaining agreement entered into, amended, or
26renewed on or after June 1, 2005 but before July 1, 2011.

 

 

SB1948- 17 -LRB101 11187 RPS 56430 b

1Notwithstanding any other provision of this Section, any
2payments made or salary increases given after June 30, 2014
3shall be used in assessing payment for any amount due under
4subsection (g) of this Section.
5    (j) The System shall prepare a report and file copies of
6the report with the Governor and the General Assembly by
7January 1, 2007 that contains all of the following information:
8        (1) The number of recalculations required by the
9    changes made to this Section by Public Act 94-1057 for each
10    employer.
11        (2) The dollar amount by which each employer's
12    contribution to the System was changed due to
13    recalculations required by Public Act 94-1057.
14        (3) The total amount the System received from each
15    employer as a result of the changes made to this Section by
16    Public Act 94-4.
17        (4) The increase in the required State contribution
18    resulting from the changes made to this Section by Public
19    Act 94-1057.
20    (j-5) For State fiscal years beginning on or after July 1,
212017, if the amount of a participant's earnings for any State
22fiscal year exceeds the amount of the salary set by law for the
23Governor that is in effect on July 1 of that fiscal year, the
24participant's employer shall pay to the System, in addition to
25all other payments required under this Section and in
26accordance with guidelines established by the System, an amount

 

 

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1determined by the System to be equal to the employer normal
2cost, as established by the System and expressed as a total
3percentage of payroll, multiplied by the amount of earnings in
4excess of the amount of the salary set by law for the Governor.
5This amount shall be computed by the System on the basis of the
6actuarial assumptions and tables used in the most recent
7actuarial valuation of the System that is available at the time
8of the computation. The System may require the employer to
9provide any pertinent information or documentation.
10    Whenever it determines that a payment is or may be required
11under this subsection, the System shall calculate the amount of
12the payment and bill the employer for that amount. The bill
13shall specify the calculation used to determine the amount due.
14If the employer disputes the amount of the bill, it may, within
1530 days after receipt of the bill, apply to the System in
16writing for a recalculation. The application must specify in
17detail the grounds of the dispute. Upon receiving a timely
18application for recalculation, the System shall review the
19application and, if appropriate, recalculate the amount due.
20    The employer contributions required under this subsection
21may be paid in the form of a lump sum within 90 days after
22issuance of the bill. If the employer contributions are not
23paid within 90 days after issuance of the bill, then interest
24will be charged at a rate equal to the System's annual
25actuarially assumed rate of return on investment compounded
26annually from the 91st day after issuance of the bill. All

 

 

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1payments must be received within 3 years after issuance of the
2bill. If the employer fails to make complete payment, including
3applicable interest, within 3 years, then the System may, after
4giving notice to the employer, certify the delinquent amount to
5the State Comptroller, and the Comptroller shall thereupon
6deduct the certified delinquent amount from State funds payable
7to the employer and pay them instead to the System.
8    This subsection (j-5) does not apply to a participant's
9earnings to the extent an employer pays the employer normal
10cost of such earnings.
11    The changes made to this subsection (j-5) by Public Act
12100-624 this amendatory Act of the 100th General Assembly are
13intended to apply retroactively to July 6, 2017 (the effective
14date of Public Act 100-23).
15    (k) The Illinois Community College Board shall adopt rules
16for recommending lists of promotional positions submitted to
17the Board by community colleges and for reviewing the
18promotional lists on an annual basis. When recommending
19promotional lists, the Board shall consider the similarity of
20the positions submitted to those positions recognized for State
21universities by the State Universities Civil Service System.
22The Illinois Community College Board shall file a copy of its
23findings with the System. The System shall consider the
24findings of the Illinois Community College Board when making
25determinations under this Section. The System shall not exclude
26any earnings increases resulting from a promotion when the

 

 

SB1948- 20 -LRB101 11187 RPS 56430 b

1promotion was not submitted by a community college. Nothing in
2this subsection (k) shall require any community college to
3submit any information to the Community College Board.
4    (l) 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    (m) 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(Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17;
20100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
 
21    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
22    Sec. 16-158. Contributions by State and other employing
23units.
24    (a) The State shall make contributions to the System by
25means of appropriations from the Common School Fund and other

 

 

SB1948- 21 -LRB101 11187 RPS 56430 b

1State funds of amounts which, together with other employer
2contributions, employee contributions, investment income, and
3other income, will be sufficient to meet the cost of
4maintaining and administering the System on a 90% funded basis
5in accordance with actuarial recommendations.
6    The Board shall determine the amount of State contributions
7required for each fiscal year on the basis of the actuarial
8tables and other assumptions adopted by the Board and the
9recommendations of the actuary, using the formula in subsection
10(b-3).
11    (a-1) Annually, on or before November 15 until November 15,
122011, the Board shall certify to the Governor the amount of the
13required State contribution for the coming fiscal year. The
14certification under this subsection (a-1) shall include a copy
15of the actuarial recommendations upon which it is based and
16shall specifically identify the System's projected State
17normal cost for that fiscal year.
18    On or before May 1, 2004, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2005, taking
21into account the amounts appropriated to and received by the
22System under subsection (d) of Section 7.2 of the General
23Obligation Bond Act.
24    On or before July 1, 2005, the Board shall recalculate and
25recertify to the Governor the amount of the required State
26contribution to the System for State fiscal year 2006, taking

 

 

SB1948- 22 -LRB101 11187 RPS 56430 b

1into account the changes in required State contributions made
2by Public Act 94-4.
3    On or before April 1, 2011, the Board shall recalculate and
4recertify to the Governor the amount of the required State
5contribution to the System for State fiscal year 2011, applying
6the changes made by Public Act 96-889 to the System's assets
7and liabilities as of June 30, 2009 as though Public Act 96-889
8was approved on that date.
9    (a-5) On or before November 1 of each year, beginning
10November 1, 2012, the Board shall submit to the State Actuary,
11the Governor, and the General Assembly a proposed certification
12of the amount of the required State contribution to the System
13for the 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 each 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

 

 

SB1948- 23 -LRB101 11187 RPS 56430 b

1the fiscal impact of not following the State Actuary's
2recommended changes on the required State contribution.
3    (a-10) By November 1, 2017, 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 2018, taking into account the changes in
7required State contributions made by Public Act 100-23. The
8State Actuary shall review the assumptions and valuations
9underlying the Board's revised certification and issue a
10preliminary report concerning the proposed recertification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification of the required State contributions. The Board's
14final certification must note any deviations from the State
15Actuary's recommended changes, the reason or reasons for not
16following the State Actuary's recommended changes, and the
17fiscal impact of not following the State Actuary's recommended
18changes on the required State contribution.
19    (a-15) On or after June 15, 2019, but no later than June
2030, 2019, the Board shall recalculate and recertify to the
21Governor and the General Assembly the amount of the State
22contribution to the System for State fiscal year 2019, taking
23into account the changes in required State contributions made
24by Public Act 100-587 this amendatory Act of the 100th General
25Assembly. The recalculation shall be made using assumptions
26adopted by the Board for the original fiscal year 2019

 

 

SB1948- 24 -LRB101 11187 RPS 56430 b

1certification. The monthly voucher for the 12th month of fiscal
2year 2019 shall be paid by the Comptroller after the
3recertification required pursuant to this subsection is
4submitted to the Governor, Comptroller, and General Assembly.
5The recertification submitted to the General Assembly shall be
6filed with the Clerk of the House of Representatives and the
7Secretary of the Senate in electronic form only, in the manner
8that the Clerk and the Secretary shall direct.
9    (b) Through State fiscal year 1995, the State contributions
10shall be paid to the System in accordance with Section 18-7 of
11the School Code.
12    (b-1) Beginning in State fiscal year 1996, on the 15th day
13of each month, or as soon thereafter as may be practicable, the
14Board shall submit vouchers for payment of State contributions
15to the System, in a total monthly amount of one-twelfth of the
16required annual State contribution certified under subsection
17(a-1). From March 5, 2004 (the effective date of Public Act
1893-665) through June 30, 2004, the Board shall not submit
19vouchers for the remainder of fiscal year 2004 in excess of the
20fiscal year 2004 certified contribution amount determined
21under this Section after taking into consideration the transfer
22to the System under subsection (a) of Section 6z-61 of the
23State Finance Act. These vouchers shall be paid by the State
24Comptroller and Treasurer by warrants drawn on the funds
25appropriated to the System for that fiscal year.
26    If in any month the amount remaining unexpended from all

 

 

SB1948- 25 -LRB101 11187 RPS 56430 b

1other appropriations to the System for the applicable fiscal
2year (including the appropriations to the System under Section
38.12 of the State Finance Act and Section 1 of the State
4Pension Funds Continuing Appropriation Act) is less than the
5amount lawfully vouchered under this subsection, the
6difference shall be paid from the Common School Fund under the
7continuing appropriation authority provided in Section 1.1 of
8the State Pension Funds Continuing Appropriation Act.
9    (b-2) Allocations from the Common School Fund apportioned
10to school districts not coming under this System shall not be
11diminished or affected by the provisions of this Article.
12    (b-3) For State fiscal years 2012 through 2045, the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 90% of
16the total actuarial liabilities of the System by the end of
17State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22    For each of State fiscal years 2018, 2019, and 2020, the
23State shall make an additional contribution to the System equal
24to 2% of the total payroll of each employee who is deemed to
25have elected the benefits under Section 1-161 or who has made
26the election under subsection (c) of Section 1-161.

 

 

SB1948- 26 -LRB101 11187 RPS 56430 b

1    A change in an actuarial or investment assumption that
2increases or decreases the required State contribution and
3first applies in State fiscal year 2018 or thereafter shall be
4implemented in equal annual amounts over a 5-year period
5beginning in the State fiscal year in which the actuarial
6change first applies to the required State contribution.
7    A change in an actuarial or investment assumption that
8increases or decreases the required State contribution and
9first applied to the State contribution in fiscal year 2014,
102015, 2016, or 2017 shall be implemented:
11        (i) as already applied in State fiscal years before
12    2018; and
13        (ii) in the portion of the 5-year period beginning in
14    the State fiscal year in which the actuarial change first
15    applied that occurs in State fiscal year 2018 or
16    thereafter, by calculating the change in equal annual
17    amounts over that 5-year period and then implementing it at
18    the resulting annual rate in each of the remaining fiscal
19    years in that 5-year period.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section; except that in the
25following specified State fiscal years, the State contribution
26to the System shall not be less than the following indicated

 

 

SB1948- 27 -LRB101 11187 RPS 56430 b

1percentages of the applicable employee payroll, even if the
2indicated percentage will produce a State contribution in
3excess of the amount otherwise required under this subsection
4and subsection (a), and notwithstanding any contrary
5certification made under subsection (a-1) before May 27, 1998
6(the effective date of Public Act 90-582): 10.02% in FY 1999;
710.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86%
8in FY 2003; and 13.56% in FY 2004.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2006 is
11$534,627,700.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2007 is
14$738,014,500.
15    For each of State fiscal years 2008 through 2009, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18from the required State contribution for State fiscal year
192007, so that by State fiscal year 2011, the State is
20contributing at the rate otherwise required under this Section.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2010 is
23$2,089,268,000 and shall be made from the proceeds of bonds
24sold in fiscal year 2010 pursuant to Section 7.2 of the General
25Obligation Bond Act, less (i) the pro rata share of bond sale
26expenses determined by the System's share of total bond

 

 

SB1948- 28 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 29 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 30 -LRB101 11187 RPS 56430 b

1applicable employee payroll, in equal increments calculated
2from the sum of the required State contribution for State
3fiscal year 2007 plus the applicable portion of the State's
4total debt service payments for fiscal year 2007 on the bonds
5issued in fiscal year 2003 for the purposes of Section 7.2 of
6the General Obligation Bond Act, so that, by State fiscal year
72011, the State is contributing at the rate otherwise required
8under this Section.
9    (b-4) Beginning in fiscal year 2018, each employer under
10this Article shall pay to the System a required contribution
11determined as a percentage of projected payroll and sufficient
12to produce an annual amount equal to:
13        (i) for each of fiscal years 2018, 2019, and 2020, the
14    defined benefit normal cost of the defined benefit plan,
15    less the employee contribution, for each employee of that
16    employer who has elected or who is deemed to have elected
17    the benefits under Section 1-161 or who has made the
18    election under subsection (b) of Section 1-161; for fiscal
19    year 2021 and each fiscal year thereafter, the defined
20    benefit normal cost of the defined benefit plan, less the
21    employee contribution, plus 2%, for each employee of that
22    employer who has elected or who is deemed to have elected
23    the benefits under Section 1-161 or who has made the
24    election under subsection (b) of Section 1-161; plus
25        (ii) the amount required for that fiscal year to
26    amortize any unfunded actuarial accrued liability

 

 

SB1948- 31 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 32 -LRB101 11187 RPS 56430 b

1System from such funds the full accruing retirement costs based
2upon that service, which, beginning July 1, 2017, shall be at a
3rate, expressed as a percentage of salary, equal to the total
4employer's normal cost, expressed as a percentage of payroll,
5as determined by the System. Employer contributions, based on
6salary paid to members from federal funds, may be forwarded by
7the distributing agency of the State of Illinois to the System
8prior to allocation, in an amount determined in accordance with
9guidelines established by such agency and the System. Any
10contribution for fiscal year 2015 collected as a result of the
11change made by Public Act 98-674 shall be considered a State
12contribution under subsection (b-3) of this Section.
13    (d) Effective July 1, 1986, any employer of a teacher as
14defined in paragraph (8) of Section 16-106 shall pay the
15employer's normal cost of benefits based upon the teacher's
16service, in addition to employee contributions, as determined
17by the System. Such employer contributions shall be forwarded
18monthly in accordance with guidelines established by the
19System.
20    However, with respect to benefits granted under Section
2116-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
22of Section 16-106, the employer's contribution shall be 12%
23(rather than 20%) of the member's highest annual salary rate
24for each year of creditable service granted, and the employer
25shall also pay the required employee contribution on behalf of
26the teacher. For the purposes of Sections 16-133.4 and

 

 

SB1948- 33 -LRB101 11187 RPS 56430 b

116-133.5, a teacher as defined in paragraph (8) of Section
216-106 who is serving in that capacity while on leave of
3absence from another employer under this Article shall not be
4considered an employee of the employer from which the teacher
5is on leave.
6    (e) Beginning July 1, 1998, every employer of a teacher
7shall pay to the System an employer contribution computed as
8follows:
9        (1) Beginning July 1, 1998 through June 30, 1999, the
10    employer contribution shall be equal to 0.3% of each
11    teacher's salary.
12        (2) Beginning July 1, 1999 and thereafter, the employer
13    contribution shall be equal to 0.58% of each teacher's
14    salary.
15The school district or other employing unit may pay these
16employer contributions out of any source of funding available
17for that purpose and shall forward the contributions to the
18System on the schedule established for the payment of member
19contributions.
20    These employer contributions are intended to offset a
21portion of the cost to the System of the increases in
22retirement benefits resulting from Public Act 90-582.
23    Each employer of teachers is entitled to a credit against
24the contributions required under this subsection (e) with
25respect to salaries paid to teachers for the period January 1,
262002 through June 30, 2003, equal to the amount paid by that

 

 

SB1948- 34 -LRB101 11187 RPS 56430 b

1employer under subsection (a-5) of Section 6.6 of the State
2Employees Group Insurance Act of 1971 with respect to salaries
3paid to teachers for that period.
4    The additional 1% employee contribution required under
5Section 16-152 by Public Act 90-582 is the responsibility of
6the teacher and not the teacher's employer, unless the employer
7agrees, through collective bargaining or otherwise, to make the
8contribution on behalf of the teacher.
9    If an employer is required by a contract in effect on May
101, 1998 between the employer and an employee organization to
11pay, on behalf of all its full-time employees covered by this
12Article, all mandatory employee contributions required under
13this Article, then the employer shall be excused from paying
14the employer contribution required under this subsection (e)
15for the balance of the term of that contract. The employer and
16the employee organization shall jointly certify to the System
17the existence of the contractual requirement, in such form as
18the System may prescribe. This exclusion shall cease upon the
19termination, extension, or renewal of the contract at any time
20after May 1, 1998.
21    (f) For school years beginning on or after June 1, 2005 and
22before July 1, 2018 and for salary paid to a teacher under a
23contract or collective bargaining agreement entered into,
24amended, or renewed before June 4, 2018 (the effective date of
25Public Act 100-587) this amendatory Act of the 100th General
26Assembly, if the amount of a teacher's salary for any school

 

 

SB1948- 35 -LRB101 11187 RPS 56430 b

1year used to determine final average salary exceeds the
2member's annual full-time salary rate with the same employer
3for the previous school year by more than 6%, the teacher's
4employer shall pay to the System, in addition to all other
5payments required under this Section and in accordance with
6guidelines established by the System, the present value of the
7increase in benefits resulting from the portion of the increase
8in salary that is in excess of 6%. This present value shall be
9computed by the System on the basis of the actuarial
10assumptions and tables used in the most recent actuarial
11valuation of the System that is available at the time of the
12computation. If a teacher's salary for the 2005-2006 school
13year is used to determine final average salary under this
14subsection (f), then the changes made to this subsection (f) by
15Public Act 94-1057 shall apply in calculating whether the
16increase in his or her salary is in excess of 6%. For the
17purposes of this Section, change in employment under Section
1810-21.12 of the School Code on or after June 1, 2005 shall
19constitute a change in employer. The System may require the
20employer to provide any pertinent information or
21documentation. The changes made to this subsection (f) by
22Public Act 94-1111 apply without regard to whether the teacher
23was in service on or after its effective date.
24    Whenever it determines that a payment is or may be required
25under this subsection, the System shall calculate the amount of
26the payment and bill the employer for that amount. The bill

 

 

SB1948- 36 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 37 -LRB101 11187 RPS 56430 b

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

 

 

SB1948- 38 -LRB101 11187 RPS 56430 b

1timely application for recalculation, the System shall review
2the application and, if appropriate, recalculate the amount
3due.
4    The employer contributions required under this subsection
5(f-1) may be paid in the form of a lump sum within 90 days after
6receipt of the bill. If the employer contributions are not paid
7within 90 days after receipt of the bill, then interest shall
8be charged at a rate equal to the System's annual actuarially
9assumed rate of return on investment compounded annually from
10the 91st day after receipt of the bill. Payments must be
11concluded within 3 years after the employer's receipt of the
12bill.
13    (g) This subsection (g) applies only to payments made or
14salary increases given on or after June 1, 2005 but before July
151, 2011. The changes made by Public Act 94-1057 shall not
16require the System to refund any payments received before July
1731, 2006 (the effective date of Public Act 94-1057).
18    When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases paid to teachers
20under contracts or collective bargaining agreements entered
21into, amended, or renewed before June 1, 2005.
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases paid to a
24teacher at a time when the teacher is 10 or more years from
25retirement eligibility under Section 16-132 or 16-133.2.
26    When assessing payment for any amount due under subsection

 

 

SB1948- 39 -LRB101 11187 RPS 56430 b

1(f), the System shall exclude salary increases resulting from
2overload work, including summer school, when the school
3district has certified to the System, and the System has
4approved the certification, that (i) the overload work is for
5the sole purpose of classroom instruction in excess of the
6standard number of classes for a full-time teacher in a school
7district during a school year and (ii) the salary increases are
8equal to or less than the rate of pay for classroom instruction
9computed on the teacher's current salary and work schedule.
10    When assessing payment for any amount due under subsection
11(f), the System shall exclude a salary increase resulting from
12a promotion (i) for which the employee is required to hold a
13certificate or supervisory endorsement issued by the State
14Teacher Certification Board that is a different certification
15or supervisory endorsement than is required for the teacher's
16previous position and (ii) to a position that has existed and
17been filled by a member for no less than one complete academic
18year and the salary increase from the promotion is an increase
19that results in an amount no greater than the lesser of the
20average salary paid for other similar positions in the district
21requiring the same certification or the amount stipulated in
22the collective bargaining agreement for a similar position
23requiring the same certification.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude any payment to the teacher from
26the State of Illinois or the State Board of Education over

 

 

SB1948- 40 -LRB101 11187 RPS 56430 b

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

 

 

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1similar position requiring the same licensure.
2    When assessing payment for any amount due under subsection
3(f-1), the System shall exclude salary increases resulting from
4duties as a coach or advisor for an extracurricular activity.
5    When assessing payment for any amount due under subsection
6(f-1), the System shall exclude any payment made to an
7individual who holds a professional educator license endorsed
8for any area of career and technical education or an educator
9license with stipulations endorsed for any area of career and
10technical education.
11    (h) When assessing payment for any amount due under
12subsection (f), the System shall exclude any salary increase
13described in subsection (g) of this Section given on or after
14July 1, 2011 but before July 1, 2014 under a contract or
15collective bargaining agreement entered into, amended, or
16renewed on or after June 1, 2005 but before July 1, 2011.
17Notwithstanding any other provision of this Section, any
18payments made or salary increases given after June 30, 2014
19shall be used in assessing payment for any amount due under
20subsection (f) of this Section.
21    (i) The System shall prepare a report and file copies of
22the report with the Governor and the General Assembly by
23January 1, 2007 that contains all of the following information:
24        (1) The number of recalculations required by the
25    changes made to this Section by Public Act 94-1057 for each
26    employer.

 

 

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1        (2) The dollar amount by which each employer's
2    contribution to the System was changed due to
3    recalculations required by Public Act 94-1057.
4        (3) The total amount the System received from each
5    employer as a result of the changes made to this Section by
6    Public Act 94-4.
7        (4) The increase in the required State contribution
8    resulting from the changes made to this Section by Public
9    Act 94-1057.
10    (i-5) For school years beginning on or after July 1, 2017,
11if the amount of a participant's salary for any school year
12exceeds the amount of the salary set for the Governor, the
13participant's employer shall pay to the System, in addition to
14all other payments required under this Section and in
15accordance with guidelines established by the System, an amount
16determined by the System to be equal to the employer normal
17cost, as established by the System and expressed as a total
18percentage of payroll, multiplied by the amount of salary in
19excess of the amount of the salary set for the Governor. This
20amount shall be computed by the System on the basis of the
21actuarial assumptions and tables used in the most recent
22actuarial valuation of the System that is available at the time
23of the computation. The System may require the employer to
24provide any pertinent information or documentation.
25    Whenever it determines that a payment is or may be required
26under this subsection, the System shall calculate the amount of

 

 

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1the payment and bill the employer for that amount. The bill
2shall specify the calculations used to determine the amount
3due. If the employer disputes the amount of the bill, it may,
4within 30 days after receipt of the bill, apply to the System
5in writing for a recalculation. The application must specify in
6detail the grounds of the dispute. Upon receiving a timely
7application for recalculation, the System shall review the
8application and, if appropriate, recalculate the amount due.
9    The employer contributions required under this subsection
10may be paid in the form of a lump sum within 90 days after
11receipt of the bill. If the employer contributions are not paid
12within 90 days after receipt of the bill, then interest will be
13charged at a rate equal to the System's annual actuarially
14assumed rate of return on investment compounded annually from
15the 91st day after receipt of the bill. Payments must be
16concluded within 3 years after the employer's receipt of the
17bill.
18    (j) For purposes of determining the required State
19contribution to the System, the value of the System's assets
20shall be equal to the actuarial value of the System's assets,
21which shall be calculated as follows:
22    As of June 30, 2008, the actuarial value of the System's
23assets shall be equal to the market value of the assets as of
24that date. In determining the actuarial value of the System's
25assets for fiscal years after June 30, 2008, any actuarial
26gains or losses from investment return incurred in a fiscal

 

 

SB1948- 44 -LRB101 11187 RPS 56430 b

1year shall be recognized in equal annual amounts over the
25-year period following that fiscal year.
3    (k) For purposes of determining the required State
4contribution to the system for a particular year, the actuarial
5value of assets shall be assumed to earn a rate of return equal
6to the system's actuarially assumed rate of return.
7(Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17;
8100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff.
98-14-18; revised 10-4-18.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.