HB1566 EngrossedLRB096 05110 AMC 15176 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 2-134, 14-135.08, 15-165, 16-158, and 18-140 as
6follows:
 
7    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
8    Sec. 2-134. To certify required State contributions and
9submit vouchers.
10    (a) The Board shall certify to the Governor on or before
11December 15 of each year the amount of the required State
12contribution to the System for the next fiscal year. The
13certification shall include a copy of the actuarial
14recommendations upon which it is based.
15    On or before May 1, 2004, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2005, taking
18into account the amounts appropriated to and received by the
19System under subsection (d) of Section 7.2 of the General
20Obligation Bond Act.
21    On or before July 1, 2005, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2006, taking

 

 

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1into account the changes in required State contributions made
2by this amendatory Act of the 94th General Assembly.
3    On or before February 1, 2011, the Board shall recalculate
4and recertify to the Governor the amount of the required State
5contribution to the System for all of State fiscal year 2011,
6taking into account Public Act 96-889.
7    (b) Beginning in State fiscal year 1996, on or as soon as
8possible after the 15th day of each month the Board shall
9submit vouchers for payment of State contributions to the
10System, in a total monthly amount of one-twelfth of the
11required annual State contribution certified under subsection
12(a). From the effective date of this amendatory Act of the 93rd
13General Assembly through June 30, 2004, the Board shall not
14submit vouchers for the remainder of fiscal year 2004 in excess
15of the fiscal year 2004 certified contribution amount
16determined under this Section after taking into consideration
17the transfer to the System under subsection (d) of Section
186z-61 of the State Finance Act. These vouchers shall be paid by
19the State Comptroller and Treasurer by warrants drawn on the
20funds appropriated to the System for that fiscal year. If in
21any month the amount remaining unexpended from all other
22appropriations to the System for the applicable fiscal year
23(including the appropriations to the System under Section 8.12
24of the State Finance Act and Section 1 of the State Pension
25Funds Continuing Appropriation Act) is less than the amount
26lawfully vouchered under this Section, the difference shall be

 

 

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1paid from the General Revenue Fund under the continuing
2appropriation authority provided in Section 1.1 of the State
3Pension Funds Continuing Appropriation Act.
4    (c) The full amount of any annual appropriation for the
5System for State fiscal year 1995 shall be transferred and made
6available to the System at the beginning of that fiscal year at
7the request of the Board. Any excess funds remaining at the end
8of any fiscal year from appropriations shall be retained by the
9System as a general reserve to meet the System's accrued
10liabilities.
11(Source: P.A. 94-4, eff. 6-1-05; 94-536, eff. 8-10-05; 95-331,
12eff. 8-21-07.)
 
13    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
14    Sec. 14-135.08. To certify required State contributions.
15    (a) To certify to the Governor and to each department, on
16or before November 15 of each year, the required rate for State
17contributions to the System for the next State fiscal year, as
18determined under subsection (b) of Section 14-131. The
19certification to the Governor shall include a copy of the
20actuarial recommendations upon which the rate is based.
21    (b) The certification shall include an additional amount
22necessary to pay all principal of and interest on those general
23obligation bonds due the next fiscal year authorized by Section
247.2(a) of the General Obligation Bond Act and issued to provide
25the proceeds deposited by the State with the System in July

 

 

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12003, representing deposits other than amounts reserved under
2Section 7.2(c) of the General Obligation Bond Act. For State
3fiscal year 2005, the Board shall make a supplemental
4certification of the additional amount necessary to pay all
5principal of and interest on those general obligation bonds due
6in State fiscal years 2004 and 2005 authorized by Section
77.2(a) of the General Obligation Bond Act and issued to provide
8the proceeds deposited by the State with the System in July
92003, representing deposits other than amounts reserved under
10Section 7.2(c) of the General Obligation Bond Act, as soon as
11practical after the effective date of this amendatory Act of
12the 93rd General Assembly.
13    On or before May 1, 2004, the Board shall recalculate and
14recertify to the Governor and to each department the amount of
15the required State contribution to the System and the required
16rates for State contributions to the System for State fiscal
17year 2005, taking into account the amounts appropriated to and
18received by the System under subsection (d) of Section 7.2 of
19the General Obligation Bond Act.
20    On or before July 1, 2005, the Board shall recalculate and
21recertify to the Governor and to each department the amount of
22the required State contribution to the System and the required
23rates for State contributions to the System for State fiscal
24year 2006, taking into account the changes in required State
25contributions made by this amendatory Act of the 94th General
26Assembly.

 

 

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1    On or before February 1, 2011, the Board shall recalculate
2and recertify to the Governor the amount of the required State
3contribution to the System for all of State fiscal year 2011,
4taking into account Public Act 96-889.
5(Source: P.A. 93-2, eff. 4-7-03; 93-839, eff. 7-30-04; 94-4,
6eff. 6-1-05.)
 
7    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
8    Sec. 15-165. To certify amounts and submit vouchers.
9    (a) The Board shall certify to the Governor on or before
10November 15 of each year the appropriation required from State
11funds for the purposes of this System for the following fiscal
12year. The certification shall include a copy of the actuarial
13recommendations upon which it is based.
14    On or before May 1, 2004, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2005, taking
17into account the amounts appropriated to and received by the
18System under subsection (d) of Section 7.2 of the General
19Obligation Bond Act.
20    On or before July 1, 2005, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2006, taking
23into account the changes in required State contributions made
24by this amendatory Act of the 94th General Assembly.
25    On or before February 1, 2011, the Board shall recalculate

 

 

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1and recertify to the Governor the amount of the required State
2contribution to the System for all of State fiscal year 2011,
3taking into account Public Act 96-889.
4    (b) The Board shall certify to the State Comptroller or
5employer, as the case may be, from time to time, by its
6president and secretary, with its seal attached, the amounts
7payable to the System from the various funds.
8    (c) Beginning in State fiscal year 1996, on or as soon as
9possible after the 15th day of each month the Board shall
10submit vouchers for payment of State contributions to the
11System, in a total monthly amount of one-twelfth of the
12required annual State contribution certified under subsection
13(a). From the effective date of this amendatory Act of the 93rd
14General Assembly through June 30, 2004, the Board shall not
15submit vouchers for the remainder of fiscal year 2004 in excess
16of the fiscal year 2004 certified contribution amount
17determined under this Section after taking into consideration
18the transfer to the System under subsection (b) of Section
196z-61 of the State Finance Act. These vouchers shall be paid by
20the State Comptroller and Treasurer by warrants drawn on the
21funds appropriated to the System for that fiscal year.
22    If in any month the amount remaining unexpended from all
23other appropriations to the System for the applicable fiscal
24year (including the appropriations to the System under Section
258.12 of the State Finance Act and Section 1 of the State
26Pension Funds Continuing Appropriation Act) is less than the

 

 

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1amount lawfully vouchered under this Section, the difference
2shall be paid from the General Revenue Fund under the
3continuing appropriation authority provided in Section 1.1 of
4the State Pension Funds Continuing Appropriation Act.
5    (d) So long as the payments received are the full amount
6lawfully vouchered under this Section, payments received by the
7System under this Section shall be applied first toward the
8employer contribution to the self-managed plan established
9under Section 15-158.2. Payments shall be applied second toward
10the employer's portion of the normal costs of the System, as
11defined in subsection (f) of Section 15-155. The balance shall
12be applied toward the unfunded actuarial liabilities of the
13System.
14    (e) In the event that the System does not receive, as a
15result of legislative enactment or otherwise, payments
16sufficient to fully fund the employer contribution to the
17self-managed plan established under Section 15-158.2 and to
18fully fund that portion of the employer's portion of the normal
19costs of the System, as calculated in accordance with Section
2015-155(a-1), then any payments received shall be applied
21proportionately to the optional retirement program established
22under Section 15-158.2 and to the employer's portion of the
23normal costs of the System, as calculated in accordance with
24Section 15-155(a-1).
25(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4,
26eff. 6-1-05.)
 

 

 

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1    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
2    Sec. 16-158. Contributions by State and other employing
3units.
4    (a) The State shall make contributions to the System by
5means of appropriations from the Common School Fund and other
6State funds of amounts which, together with other employer
7contributions, employee contributions, investment income, and
8other income, will be sufficient to meet the cost of
9maintaining and administering the System on a 90% funded basis
10in accordance with actuarial recommendations.
11    The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(b-3).
16    (a-1) Annually, on or before November 15, the Board shall
17certify to the Governor the amount of the required State
18contribution for the coming fiscal year. The certification
19shall include a copy of the actuarial recommendations upon
20which it is based.
21    On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking
24into account the amounts appropriated to and received by the
25System under subsection (d) of Section 7.2 of the General

 

 

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1Obligation Bond Act.
2    On or before July 1, 2005, the Board shall recalculate and
3recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2006, taking
5into account the changes in required State contributions made
6by this amendatory Act of the 94th General Assembly.
7    On or before February 1, 2011, the Board shall recalculate
8and recertify to the Governor the amount of the required State
9contribution to the System for all of State fiscal year 2011,
10taking into account Public Act 96-889.
11    (b) Through State fiscal year 1995, the State contributions
12shall be paid to the System in accordance with Section 18-7 of
13the School Code.
14    (b-1) Beginning in State fiscal year 1996, on the 15th day
15of each month, or as soon thereafter as may be practicable, the
16Board shall submit vouchers for payment of State contributions
17to the System, in a total monthly amount of one-twelfth of the
18required annual State contribution certified under subsection
19(a-1). From the effective date of this amendatory Act of the
2093rd General Assembly through June 30, 2004, the Board shall
21not submit vouchers for the remainder of fiscal year 2004 in
22excess of the fiscal year 2004 certified contribution amount
23determined under this Section after taking into consideration
24the transfer to the System under subsection (a) of Section
256z-61 of the State Finance Act. These vouchers shall be paid by
26the State Comptroller and Treasurer by warrants drawn on the

 

 

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1funds appropriated to the System for that fiscal year.
2    If in any month the amount remaining unexpended from all
3other appropriations to the System for the applicable fiscal
4year (including the appropriations to the System under Section
58.12 of the State Finance Act and Section 1 of the State
6Pension Funds Continuing Appropriation Act) is less than the
7amount lawfully vouchered under this subsection, the
8difference shall be paid from the Common School Fund under the
9continuing appropriation authority provided in Section 1.1 of
10the State Pension Funds Continuing Appropriation Act.
11    (b-2) Allocations from the Common School Fund apportioned
12to school districts not coming under this System shall not be
13diminished or affected by the provisions of this Article.
14    (b-3) For State fiscal years 2011 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
17sufficient to bring the total assets of the System up to 90% of
18the total actuarial liabilities of the System by the end of
19State fiscal year 2045. In making these determinations, the
20required State contribution shall be calculated each year as a
21level percentage of payroll over the years remaining to and
22including fiscal year 2045 and shall be determined under the
23projected unit credit actuarial cost method.
24    For State fiscal years 1996 through 2005, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

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1so that by State fiscal year 2011, the State is contributing at
2the rate required under this Section; except that in the
3following specified State fiscal years, the State contribution
4to the System shall not be less than the following indicated
5percentages of the applicable employee payroll, even if the
6indicated percentage will produce a State contribution in
7excess of the amount otherwise required under this subsection
8and subsection (a), and notwithstanding any contrary
9certification made under subsection (a-1) before the effective
10date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
11in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
122003; and 13.56% in FY 2004.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2006 is
15$534,627,700.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2007 is
18$738,014,500.
19    For each of State fiscal years 2008 through 2009, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22from the required State contribution for State fiscal year
232007, so that by State fiscal year 2011, the State is
24contributing at the rate otherwise required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2010 is

 

 

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1$2,089,268,000 and shall be made from the proceeds of bonds
2sold in fiscal year 2010 pursuant to Section 7.2 of the General
3Obligation Bond Act, less (i) the pro rata share of bond sale
4expenses determined by the System's share of total bond
5proceeds, (ii) any amounts received from the Common School Fund
6in fiscal year 2010, and (iii) any reduction in bond proceeds
7due to the issuance of discounted bonds, if applicable.
8    Beginning in State fiscal year 2046, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 90% of the total
11actuarial liabilities of the System.
12    Amounts received by the System pursuant to Section 25 of
13the Budget Stabilization Act or Section 8.12 of the State
14Finance Act in any fiscal year do not reduce and do not
15constitute payment of any portion of the minimum State
16contribution required under this Article in that fiscal year.
17Such amounts shall not reduce, and shall not be included in the
18calculation of, the required State contributions under this
19Article in any future year until the System has reached a
20funding ratio of at least 90%. A reference in this Article to
21the "required State contribution" or any substantially similar
22term does not include or apply to any amounts payable to the
23System under Section 25 of the Budget Stabilization Act.
24    Notwithstanding any other provision of this Section, the
25required State contribution for State fiscal year 2005 and for
26fiscal year 2008 and each fiscal year thereafter, as calculated

 

 

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1under this Section and certified under subsection (a-1), shall
2not exceed an amount equal to (i) the amount of the required
3State contribution that would have been calculated under this
4Section for that fiscal year if the System had not received any
5payments under subsection (d) of Section 7.2 of the General
6Obligation Bond Act, minus (ii) the portion of the State's
7total debt service payments for that fiscal year on the bonds
8issued for the purposes of that Section 7.2, as determined and
9certified by the Comptroller, that is the same as the System's
10portion of the total moneys distributed under subsection (d) of
11Section 7.2 of the General Obligation Bond Act. In determining
12this maximum for State fiscal years 2008 through 2010, however,
13the amount referred to in item (i) shall be increased, as a
14percentage of the applicable employee payroll, in equal
15increments calculated from the sum of the required State
16contribution for State fiscal year 2007 plus the applicable
17portion of the State's total debt service payments for fiscal
18year 2007 on the bonds issued for the purposes of Section 7.2
19of the General Obligation Bond Act, so that, by State fiscal
20year 2011, the State is contributing at the rate otherwise
21required under this Section.
22    (c) Payment of the required State contributions and of all
23pensions, retirement annuities, death benefits, refunds, and
24other benefits granted under or assumed by this System, and all
25expenses in connection with the administration and operation
26thereof, are obligations of the State.

 

 

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1    If members are paid from special trust or federal funds
2which are administered by the employing unit, whether school
3district or other unit, the employing unit shall pay to the
4System from such funds the full accruing retirement costs based
5upon that service, as determined by the System. Employer
6contributions, based on salary paid to members from federal
7funds, may be forwarded by the distributing agency of the State
8of Illinois to the System prior to allocation, in an amount
9determined in accordance with guidelines established by such
10agency and the System.
11    (d) Effective July 1, 1986, any employer of a teacher as
12defined in paragraph (8) of Section 16-106 shall pay the
13employer's normal cost of benefits based upon the teacher's
14service, in addition to employee contributions, as determined
15by the System. Such employer contributions shall be forwarded
16monthly in accordance with guidelines established by the
17System.
18    However, with respect to benefits granted under Section
1916-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
20of Section 16-106, the employer's contribution shall be 12%
21(rather than 20%) of the member's highest annual salary rate
22for each year of creditable service granted, and the employer
23shall also pay the required employee contribution on behalf of
24the teacher. For the purposes of Sections 16-133.4 and
2516-133.5, a teacher as defined in paragraph (8) of Section
2616-106 who is serving in that capacity while on leave of

 

 

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1absence from another employer under this Article shall not be
2considered an employee of the employer from which the teacher
3is on leave.
4    (e) Beginning July 1, 1998, every employer of a teacher
5shall pay to the System an employer contribution computed as
6follows:
7        (1) Beginning July 1, 1998 through June 30, 1999, the
8    employer contribution shall be equal to 0.3% of each
9    teacher's salary.
10        (2) Beginning July 1, 1999 and thereafter, the employer
11    contribution shall be equal to 0.58% of each teacher's
12    salary.
13The school district or other employing unit may pay these
14employer contributions out of any source of funding available
15for that purpose and shall forward the contributions to the
16System on the schedule established for the payment of member
17contributions.
18    These employer contributions are intended to offset a
19portion of the cost to the System of the increases in
20retirement benefits resulting from this amendatory Act of 1998.
21    Each employer of teachers is entitled to a credit against
22the contributions required under this subsection (e) with
23respect to salaries paid to teachers for the period January 1,
242002 through June 30, 2003, equal to the amount paid by that
25employer under subsection (a-5) of Section 6.6 of the State
26Employees Group Insurance Act of 1971 with respect to salaries

 

 

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1paid to teachers for that period.
2    The additional 1% employee contribution required under
3Section 16-152 by this amendatory Act of 1998 is the
4responsibility of the teacher and not the teacher's employer,
5unless the employer agrees, through collective bargaining or
6otherwise, to make the contribution on behalf of the teacher.
7    If an employer is required by a contract in effect on May
81, 1998 between the employer and an employee organization to
9pay, on behalf of all its full-time employees covered by this
10Article, all mandatory employee contributions required under
11this Article, then the employer shall be excused from paying
12the employer contribution required under this subsection (e)
13for the balance of the term of that contract. The employer and
14the employee organization shall jointly certify to the System
15the existence of the contractual requirement, in such form as
16the System may prescribe. This exclusion shall cease upon the
17termination, extension, or renewal of the contract at any time
18after May 1, 1998.
19    (f) If the amount of a teacher's salary for any school year
20used to determine final average salary exceeds the member's
21annual full-time salary rate with the same employer for the
22previous school year by more than 6%, the teacher's employer
23shall pay to the System, in addition to all other payments
24required under this Section and in accordance with guidelines
25established by the System, the present value of the increase in
26benefits resulting from the portion of the increase in salary

 

 

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1that is in excess of 6%. This present value shall be computed
2by the System on the basis of the actuarial assumptions and
3tables used in the most recent actuarial valuation of the
4System that is available at the time of the computation. If a
5teacher's salary for the 2005-2006 school year is used to
6determine final average salary under this subsection (f), then
7the changes made to this subsection (f) by Public Act 94-1057
8shall apply in calculating whether the increase in his or her
9salary is in excess of 6%. For the purposes of this Section,
10change in employment under Section 10-21.12 of the School Code
11on or after June 1, 2005 shall constitute a change in employer.
12The System may require the employer to provide any pertinent
13information or documentation. The changes made to this
14subsection (f) by this amendatory Act of the 94th General
15Assembly apply without regard to whether the teacher was in
16service on or after its effective date.
17    Whenever it determines that a payment is or may be required
18under this subsection, the System shall calculate the amount of
19the payment and bill the employer for that amount. The bill
20shall specify the calculations used to determine the amount
21due. If the employer disputes the amount of the bill, it may,
22within 30 days after receipt of the bill, apply to the System
23in writing for a recalculation. The application must specify in
24detail the grounds of the dispute and, if the employer asserts
25that the calculation is subject to subsection (g) or (h) of
26this Section, must include an affidavit setting forth and

 

 

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1attesting to all facts within the employer's knowledge that are
2pertinent to the applicability of that subsection. Upon
3receiving a timely application for recalculation, the System
4shall review the application and, if appropriate, recalculate
5the amount due.
6    The employer contributions required under this subsection
7(f) 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    (g) This subsection (g) applies only to payments made or
16salary increases given on or after June 1, 2005 but before July
171, 2011. The changes made by Public Act 94-1057 shall not
18require the System to refund any payments received before July
1931, 2006 (the effective date of Public Act 94-1057).
20    When assessing payment for any amount due under subsection
21(f), the System shall exclude salary increases paid to teachers
22under contracts or collective bargaining agreements entered
23into, amended, or renewed before June 1, 2005.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude salary increases paid to a
26teacher at a time when the teacher is 10 or more years from

 

 

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1retirement eligibility under Section 16-132 or 16-133.2.
2    When assessing payment for any amount due under subsection
3(f), the System shall exclude salary increases resulting from
4overload work, including summer school, when the school
5district has certified to the System, and the System has
6approved the certification, that (i) the overload work is for
7the sole purpose of classroom instruction in excess of the
8standard number of classes for a full-time teacher in a school
9district during a school year and (ii) the salary increases are
10equal to or less than the rate of pay for classroom instruction
11computed on the teacher's current salary and work schedule.
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude a salary increase resulting from
14a promotion (i) for which the employee is required to hold a
15certificate or supervisory endorsement issued by the State
16Teacher Certification Board that is a different certification
17or supervisory endorsement than is required for the teacher's
18previous position and (ii) to a position that has existed and
19been filled by a member for no less than one complete academic
20year and the salary increase from the promotion is an increase
21that results in an amount no greater than the lesser of the
22average salary paid for other similar positions in the district
23requiring the same certification or the amount stipulated in
24the collective bargaining agreement for a similar position
25requiring the same certification.
26    When assessing payment for any amount due under subsection

 

 

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1(f), the System shall exclude any payment to the teacher from
2the State of Illinois or the State Board of Education over
3which the employer does not have discretion, notwithstanding
4that the payment is included in the computation of final
5average salary.
6    (h) When assessing payment for any amount due under
7subsection (f), the System shall exclude any salary increase
8described in subsection (g) of this Section given on or after
9July 1, 2011 but before July 1, 2014 under a contract or
10collective bargaining agreement entered into, amended, or
11renewed on or after June 1, 2005 but before July 1, 2011.
12Notwithstanding any other provision of this Section, any
13payments made or salary increases given after June 30, 2014
14shall be used in assessing payment for any amount due under
15subsection (f) of this Section.
16    (i) The System shall prepare a report and file copies of
17the report with the Governor and the General Assembly by
18January 1, 2007 that contains all of the following information:
19        (1) The number of recalculations required by the
20    changes made to this Section by Public Act 94-1057 for each
21    employer.
22        (2) The dollar amount by which each employer's
23    contribution to the System was changed due to
24    recalculations required by Public Act 94-1057.
25        (3) The total amount the System received from each
26    employer as a result of the changes made to this Section by

 

 

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1    Public Act 94-4.
2        (4) The increase in the required State contribution
3    resulting from the changes made to this Section by Public
4    Act 94-1057.
5    (j) For purposes of determining the required State
6contribution to the System, the value of the System's assets
7shall be equal to the actuarial value of the System's assets,
8which shall be calculated as follows:
9    As of June 30, 2008, the actuarial value of the System's
10assets shall be equal to the market value of the assets as of
11that date. In determining the actuarial value of the System's
12assets for fiscal years after June 30, 2008, any actuarial
13gains or losses from investment return incurred in a fiscal
14year shall be recognized in equal annual amounts over the
155-year period following that fiscal year.
16    (k) For purposes of determining the required State
17contribution to the system for a particular year, the actuarial
18value of assets shall be assumed to earn a rate of return equal
19to the system's actuarially assumed rate of return.
20(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
2196-43, eff. 7-15-09.)
 
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

 

 

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1November 15 of each year, the amount of the required State
2contribution to the System for the following fiscal year. The
3certification shall include a copy of the actuarial
4recommendations upon which it is based.
5    On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11    On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by this amendatory Act of the 94th General Assembly.
16    On or before February 1, 2011, the Board shall recalculate
17and recertify to the Governor the amount of the required State
18contribution to the System for all of State fiscal year 2011,
19taking into account Public Act 96-889.
20    (b) Beginning in State fiscal year 1996, on or as soon as
21possible after the 15th day of each month the Board shall
22submit vouchers for payment of State contributions to the
23System, in a total monthly amount of one-twelfth of the
24required annual State contribution certified under subsection
25(a). From the effective date of this amendatory Act of the 93rd
26General Assembly through June 30, 2004, the Board shall not

 

 

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1submit vouchers for the remainder of fiscal year 2004 in excess
2of the fiscal year 2004 certified contribution amount
3determined under this Section after taking into consideration
4the transfer to the System under subsection (c) of Section
56z-61 of the State Finance Act. These vouchers shall be paid by
6the State Comptroller and Treasurer by warrants drawn on the
7funds appropriated to the System for that fiscal year.
8    If in any month the amount remaining unexpended from all
9other appropriations to the System for the applicable fiscal
10year (including the appropriations to the System under Section
118.12 of the State Finance Act and Section 1 of the State
12Pension Funds Continuing Appropriation Act) is less than the
13amount lawfully vouchered under this Section, the difference
14shall be paid from the General Revenue Fund under the
15continuing appropriation authority provided in Section 1.1 of
16the State Pension Funds Continuing Appropriation Act.
17(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4,
18eff. 6-1-05.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.