Sen. John J. Cullerton

Filed: 5/29/2012

 

 


 

 


 
09700HB1447sam002LRB097 05201 JDS 70340 a

1
AMENDMENT TO HOUSE BILL 1447

2    AMENDMENT NO. ______. Amend House Bill 1447, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Public Labor Relations Act is
6amended by changing Sections 4 and 15 as follows:
 
7    (5 ILCS 315/4)  (from Ch. 48, par. 1604)
8    Sec. 4. Management Rights. Employers shall not be required
9to bargain over matters of inherent managerial policy, which
10shall include such areas of discretion or policy as the
11functions of the employer, standards of services, its overall
12budget, the organizational structure and selection of new
13employees, examination techniques and direction of employees.
14Employers, however, shall be required to bargain collectively
15with regard to policy matters directly affecting wages (but
16subject to any applicable restrictions in Section 14-106.5 of

 

 

09700HB1447sam002- 2 -LRB097 05201 JDS 70340 a

1the Illinois Pension Code), hours and terms and conditions of
2employment as well as the impact thereon upon request by
3employee representatives, but excluding the changes, the
4impact of changes, and the implementation of the changes set
5forth in this amendatory Act of the 97th General Assembly.
6    To preserve the rights of employers and exclusive
7representatives which have established collective bargaining
8relationships or negotiated collective bargaining agreements
9prior to the effective date of this Act, employers shall be
10required to bargain collectively with regard to any matter
11concerning wages (but subject to any applicable restrictions in
12Section 14-106.5 of the Illinois Pension Code), hours or
13conditions of employment about which they have bargained for
14and agreed to in a collective bargaining agreement prior to the
15effective date of this Act, but excluding the changes, the
16impact of changes, and the implementation of the changes set
17forth in this amendatory Act of the 97th General Assembly.
18    The chief judge of the judicial circuit that employs a
19public employee who is a court reporter, as defined in the
20Court Reporters Act, has the authority to hire, appoint,
21promote, evaluate, discipline, and discharge court reporters
22within that judicial circuit.
23    Nothing in this amendatory Act of the 94th General Assembly
24shall be construed to intrude upon the judicial functions of
25any court. This amendatory Act of the 94th General Assembly
26applies only to nonjudicial administrative matters relating to

 

 

09700HB1447sam002- 3 -LRB097 05201 JDS 70340 a

1the collective bargaining rights of court reporters.
2(Source: P.A. 94-98, eff. 7-1-05.)
 
3    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
4    Sec. 15. Act Takes Precedence.
5    (a) In case of any conflict between the provisions of this
6Act and any other law (other than Section 5 of the State
7Employees Group Insurance Act of 1971 and other than the
8changes made to the Illinois Pension Code by Public Act 96-889
9and the changes, impact of changes, and the implementation of
10the changes made to the Illinois Pension Code and the State
11Employees Group Insurance Act of 1971 by this amendatory Act of
12the 97th 96th General Assembly), executive order or
13administrative regulation relating to wages, hours and
14conditions of employment and employment relations, the
15provisions of this Act or any collective bargaining agreement
16negotiated thereunder shall prevail and control. Nothing in
17this Act shall be construed to replace or diminish the rights
18of employees established by Sections 28 and 28a of the
19Metropolitan Transit Authority Act, Sections 2.15 through 2.19
20of the Regional Transportation Authority Act. The provisions of
21this Act are subject to the changes made by this amendatory Act
22of the 97th General Assembly, including Section 14-106.5 of the
23Illinois Pension Code, and Section 5 of the State Employees
24Group Insurance Act of 1971. Nothing in this Act shall be
25construed to replace the necessity of complaints against a

 

 

09700HB1447sam002- 4 -LRB097 05201 JDS 70340 a

1sworn peace officer, as defined in Section 2(a) of the Uniform
2Peace Officer Disciplinary Act, from having a complaint
3supported by a sworn affidavit.
4    (b) Except as provided in subsection (a) above, any
5collective bargaining contract between a public employer and a
6labor organization executed pursuant to this Act shall
7supersede any contrary statutes, charters, ordinances, rules
8or regulations relating to wages, hours and conditions of
9employment and employment relations adopted by the public
10employer or its agents. Any collective bargaining agreement
11entered into prior to the effective date of this Act shall
12remain in full force during its duration.
13    (c) It is the public policy of this State, pursuant to
14paragraphs (h) and (i) of Section 6 of Article VII of the
15Illinois Constitution, that the provisions of this Act are the
16exclusive exercise by the State of powers and functions which
17might otherwise be exercised by home rule units. Such powers
18and functions may not be exercised concurrently, either
19directly or indirectly, by any unit of local government,
20including any home rule unit, except as otherwise authorized by
21this Act.
22(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
23    Section 10. The State Employees Group Insurance Act of 1971
24is amended by adding Section 6.16 as follows:
 

 

 

09700HB1447sam002- 5 -LRB097 05201 JDS 70340 a

1    (5 ILCS 375/6.16 new)
2    Sec. 6.16. Health benefit election for Tier I employees and
3Tier I retirees.
4    (a) For purposes of this Section:
5    "Eligible Tier I employee" means an individual who makes or
6is deemed to have made an election under paragraph (1) of
7subsection (a) of Sections 2-110.3 and 14-106.5 of the Illinois
8Pension Code.
9    "Eligible Tier I retiree" means an individual who makes or
10is deemed to have made an election under paragraph (1) of
11subsection (a-5) of Sections 2-110.3 and 14-106.5 of the
12Illinois Pension Code.
13    "Program of health benefits" means (i) a health plan, as
14defined in subsection (o) of Section 3 of this Act, that is
15designed and contracted for by the Director under this Act or
16any successor Act or (ii) if administration of that health plan
17is transferred to a trust established by the State or an
18independent Board in order to provide health benefits to a
19class of a persons that includes eligible Tier I retirees, then
20the plan of health benefits provided through that trust.
21    (b) As adequate and legal consideration for making the
22election under paragraph (1) of subsection (a) or (a-5) of
23Sections 2-110.3 and 14-106.5 of the Illinois Pension Code,
24each eligible Tier I employee and each eligible Tier I retiree
25shall receive a vested and enforceable contractual right to
26participate in a program of health benefits while he or she

 

 

09700HB1447sam002- 6 -LRB097 05201 JDS 70340 a

1qualifies as an annuitant or retired employee. That right also
2extends to such a person's dependents and survivors who are
3eligible under the applicable program of health benefits.
4    (c) Notwithstanding subsection (b), eligible Tier I
5employees and eligible Tier I retirees may be required to make
6contributions toward the cost of coverage under a program of
7health benefits.
8    (d) The vested and enforceable contractual right to a
9program of health benefits is not offered as, and shall not be
10considered, a pension benefit under Article XIII, Section 5 of
11the Illinois Constitution, the Illinois Pension Code, or any
12subsequent or successor enactment providing pension benefits.
13    (e) Notwithstanding any other provision of this Act, a Tier
14I employee or Tier I retiree who has made an election under
15paragraph (2) of subsection (a) or (a-5) of Sections 2-110.3
16and 14-106.5 of the Illinois Pension Code shall not be entitled
17to participate in the program of health benefits as an
18annuitant or retired employee receiving a retirement annuity,
19regardless of any contrary election pursuant to any of those
20Sections under any other retirement system.
21    Notwithstanding any other provision of this Act, a Tier I
22employee who is not entitled to participate in the program of
23health benefits as an annuitant or retired employee receiving a
24retirement annuity, due to an election under paragraph (2) of
25subsection (a) or (a-5) of Sections 2-110.3 and 14-106.5 of the
26Illinois Pension Code shall not be required to make

 

 

09700HB1447sam002- 7 -LRB097 05201 JDS 70340 a

1contributions toward the program of health benefits while he or
2she is an employee or active contributor. However, an active
3employee may be required to make contributions toward health
4benefits he or she receives during active service.
5    (f) The Department shall coordinate with each retirement
6system administering an election in accordance with this
7amendatory Act of the 97th General Assembly to provide
8information concerning the impact of the election of health
9benefits. Each System shall include information prepared by the
10Department in the required election packet. The Department
11shall make information available to Tier I employees and Tier I
12retirees through video materials, group presentations,
13consultation by telephone or other electronic means, or any
14combination of these methods.
 
15    Section 15. The Governor's Office of Management and Budget
16Act is amended by changing Sections 7 and 8 as follows:
 
17    (20 ILCS 3005/7)  (from Ch. 127, par. 417)
18    Sec. 7. All statements and estimates of expenditures
19submitted to the Office in connection with the preparation of a
20State budget, and any other estimates of expenditures,
21supporting requests for appropriations, shall be formulated
22according to the various functions and activities for which the
23respective department, office or institution of the State
24government (including the elective officers in the executive

 

 

09700HB1447sam002- 8 -LRB097 05201 JDS 70340 a

1department and including the University of Illinois and the
2judicial department) is responsible. All such statements and
3estimates of expenditures relating to a particular function or
4activity shall be further formulated or subject to analysis in
5accordance with the following classification of objects:
6    (1) Personal services
7    (2) State contribution for employee group insurance
8    (3) Contractual services
9    (4) Travel
10    (5) Commodities
11    (6) Equipment
12    (7) Permanent improvements
13    (8) Land
14    (9) Electronic Data Processing
15    (10) Telecommunication services
16    (11) Operation of Automotive Equipment
17    (12) Contingencies
18    (13) Reserve
19    (14) Interest
20    (15) Awards and Grants
21    (16) Debt Retirement
22    (17) Non-cost Charges.
23    (18) State retirement contribution for annual normal cost
24    (19) State retirement contribution for unfunded accrued
25liability.
26(Source: P.A. 93-25, eff. 6-20-03.)
 

 

 

09700HB1447sam002- 9 -LRB097 05201 JDS 70340 a

1    (20 ILCS 3005/8)  (from Ch. 127, par. 418)
2    Sec. 8. When used in connection with a State budget or
3expenditure or estimate, items (1) through (16) in the
4classification of objects stated in Section 7 shall have the
5meanings ascribed to those items in Sections 14 through 24.7,
6respectively, of the State Finance Act. "An Act in relation to
7State finance", approved June 10, 1919, as amended.
8    When used in connection with a State budget or expenditure
9or estimate, items (18) and (19) in the classification of
10objects stated in Section 7 shall have the meanings ascribed to
11those items in Sections 24.12 and 24.13, respectively, of the
12State Finance Act.
13(Source: P.A. 82-325.)
 
14    Section 20. The Illinois State Auditing Act is amended by
15adding Section 2-8.1 as follows:
 
16    (30 ILCS 5/2-8.1 new)
17    Sec. 2-8.1. Actuarial Responsibilities.
18    (a) The Auditor General shall contract with or hire an
19actuary to serve as the State Actuary. The State Actuary shall
20be retained by, serve at the pleasure of, and be under the
21supervision of the Auditor General and shall be paid from
22appropriations to the office of the Auditor General. The State
23Actuary may be selected by the Auditor General without engaging

 

 

09700HB1447sam002- 10 -LRB097 05201 JDS 70340 a

1in a competitive procurement process.
2    (b) The State Actuary shall:
3        (1) review assumptions and valuations prepared by
4    actuaries retained by the boards of trustees of the
5    State-funded retirement systems;
6        (2) issue preliminary reports to the boards of trustees
7    of the State-funded retirement systems concerning proposed
8    certifications of required State contributions submitted
9    to the State Actuary by those boards;
10        (3) cooperate with the boards of trustees of the
11    State-funded retirement systems to identify recommended
12    changes in actuarial assumptions that the boards must
13    consider before finalizing their certifications of the
14    required State contributions;
15        (4) conduct reviews of the actuarial practices of the
16    boards of trustees of the State-funded retirement systems;
17        (5) make additional reports as directed by joint
18    resolution of the General Assembly; and
19        (6) perform any other duties assigned by the Auditor
20    General, including, but not limited to, reviews of the
21    actuarial practices of other entities.
22    (c) On or before January 1, 2013 and each January 1
23thereafter, the Auditor General shall submit a written report
24to the General Assembly and Governor documenting the initial
25assumptions and valuations prepared by actuaries retained by
26the boards of trustees of the State-funded retirement systems,

 

 

09700HB1447sam002- 11 -LRB097 05201 JDS 70340 a

1any changes recommended by the State Actuary in the actuarial
2assumptions, and the responses of each board to the State
3Actuary's recommendations.
4    (d) For the purposes of this Section, "State-funded
5retirement system" means a retirement system established
6pursuant to Article 2, 14, 15, 16, or 18 of the Illinois
7Pension Code.
 
8    Section 25. The State Finance Act is amended by changing
9Section 13 and by adding Sections 24.12 and 24.13 as follows:
 
10    (30 ILCS 105/13)  (from Ch. 127, par. 149)
11    Sec. 13. The objects and purposes for which appropriations
12are made are classified and standardized by items as follows:
13    (1) Personal services;
14    (2) State contribution for employee group insurance;
15    (3) Contractual services;
16    (4) Travel;
17    (5) Commodities;
18    (6) Equipment;
19    (7) Permanent improvements;
20    (8) Land;
21    (9) Electronic Data Processing;
22    (10) Operation of automotive equipment;
23    (11) Telecommunications services;
24    (12) Contingencies;

 

 

09700HB1447sam002- 12 -LRB097 05201 JDS 70340 a

1    (13) Reserve;
2    (14) Interest;
3    (15) Awards and Grants;
4    (16) Debt Retirement;
5    (17) Non-Cost Charges;
6    (18) State retirement contribution for annual normal cost;
7    (19) State retirement contribution for unfunded accrued
8liability;
9    (20) (18) Purchase Contract for Real Estate.
10    When an appropriation is made to an officer, department,
11institution, board, commission or other agency, or to a private
12association or corporation, in one or more of the items above
13specified, such appropriation shall be construed in accordance
14with the definitions and limitations specified in this Act,
15unless the appropriation act otherwise provides.
16    An appropriation for a purpose other than one specified and
17defined in this Act may be made only as an additional, separate
18and distinct item, specifically stating the object and purpose
19thereof.
20(Source: P.A. 84-263; 84-264.)
 
21    (30 ILCS 105/24.12 new)
22    Sec. 24.12. "State retirement contribution for annual
23normal cost" defined. The term "State retirement contribution
24for annual normal cost" means the portion of the total required
25State contribution to a retirement system for a fiscal year

 

 

09700HB1447sam002- 13 -LRB097 05201 JDS 70340 a

1that represents the State's portion of the System's projected
2normal cost for that fiscal year, as determined and certified
3by the board of trustees of the retirement system in
4conformance with the applicable provisions of the Illinois
5Pension Code.
 
6    (30 ILCS 105/24.13 new)
7    Sec. 24.13. "State retirement contribution for unfunded
8accrued liability" defined. The term "State retirement
9contribution for unfunded accrued liability" means the portion
10of the total required State contribution to a retirement system
11for a fiscal year that is not included in the State retirement
12contribution for annual normal cost.
 
13    Section 30. The Illinois Pension Code is amended by
14changing Sections 1-103.3, 2-108, 2-119.1, 2-124, 2-134,
157-109, 14-103.10, 14-106, 14-114, 14-131, 14-132, 14-133,
1614-135.08, 14-152.1, 16-158, and 18-140, and by adding Sections
171-162, 2-105.1, 2-105.2, 2-107.9, 2-110.3, 14-103.40,
1814-103.41, 14-103.42, and 14-106.5 as follows:
 
19    (40 ILCS 5/1-103.3)
20    Sec. 1-103.3. Application of 1994 amendment; funding
21standard.
22    (a) The provisions of Public Act 88-593 this amendatory Act
23of 1994 that change the method of calculating, certifying, and

 

 

09700HB1447sam002- 14 -LRB097 05201 JDS 70340 a

1paying the required State contributions to the retirement
2systems established under Articles 2, 14, 15, 16, and 18 shall
3first apply to the State contributions required for State
4fiscal year 1996.
5    (b) (Blank). The General Assembly declares that a funding
6ratio (the ratio of a retirement system's total assets to its
7total actuarial liabilities) of 90% is an appropriate goal for
8State-funded retirement systems in Illinois, and it finds that
9a funding ratio of 90% is now the generally-recognized norm
10throughout the nation for public employee retirement systems
11that are considered to be financially secure and funded in an
12appropriate and responsible manner.
13    (c) Every 5 years, beginning in 1999, the Commission on
14Government Forecasting and Accountability, in consultation
15with the affected retirement systems and the Governor's Office
16of Management and Budget (formerly Bureau of the Budget), shall
17consider and determine whether the funding goals 90% funding
18ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
19continue subsection (b) continues to represent an appropriate
20funding goals goal for State-funded retirement systems in
21Illinois, and it shall report its findings and recommendations
22on this subject to the Governor and the General Assembly.
23(Source: P.A. 93-1067, eff. 1-15-05.)
 
24    (40 ILCS 5/1-162 new)
25    Sec. 1-162. Optional cash balance plan.

 

 

09700HB1447sam002- 15 -LRB097 05201 JDS 70340 a

1    (a) Participation and Applicability. Beginning on July 1,
22013, the following persons may elect to participate in the
3optional cash balance plan created under this Section:
4        (1) any person who participates in the cash balance
5    plan established under Section 1-161; and
6        (2) any Tier I employee who has made the election under
7    paragraph (1) of subsection (a) or (a-5) of Section
8    14-106.5.
9    The Board of Trustees of the applicable retirement system
10shall promulgate rules to create an annual election wherein a
11person eligible to participate in the optional cash balance
12plan may elect to participate, and an active employee who is a
13participant in the plan may elect to cease active
14participation. The election to cease active participation
15shall not disqualify the employee from eligibility to receive
16an interest credit under subsection (f), a distribution upon
17termination under subsection (f-10), a refund under subsection
18(f-15), a retirement annuity under subsection (f-15), a
19retirement annuity under subsection (g), or a survivor annuity
20under subsection (k), or from eligibility to resume active
21participation in the optional cash balance plan in a subsequent
22year.
23    (b) Title. The package of benefits provided under this
24Section may be referred to as the "optional cash balance plan".
25Persons subject to the provisions of this Section may be
26referred to as "participants in the optional cash balance

 

 

09700HB1447sam002- 16 -LRB097 05201 JDS 70340 a

1plan".
2    (b-5) Definitions. As used in this Section:
3    "Account" means the notional cash balance account
4established under this Section for a participant in the
5optional cash balance plan.
6    "Consumer Price Index-U" means the Consumer Price Index
7published by the Bureau of Labor Statistics of the United
8States Department of Labor that measures the average change in
9prices of goods and services purchased by all urban consumers,
10United States city average, all items, 1982-84 = 100.
11    "Salary" means "compensation" as defined in Article 14,
12without regard to the limitation in subsection (b-5) of Section
131-160.
14    "Tier I employee" means a person who is a Tier I employee
15under the applicable Article of this Code.
16    (c) Cash Balance Account. A notional cash balance account
17shall be established by the applicable retirement system for
18each participant in the optional cash balance plan. The account
19is notional and does not contain any actual money segregated
20from the commingled assets of the retirement system. The cash
21balance in the account is to be used in calculating benefits as
22provided in this Section, but is not to be used in the
23calculation of any refund, transfer, or other benefit under the
24applicable Article of this Code.
25    The amounts to be credited to the cash balance account
26shall consist of (i) amounts contributed by or on behalf of the

 

 

09700HB1447sam002- 17 -LRB097 05201 JDS 70340 a

1participant as employee contributions, (ii) notional employer
2contributions, and (iii) interest credit that is attributable
3to the account, all as provided in this Section.
4    Whenever necessary for the prompt calculation or
5administration, or when the System lacks information necessary
6to the calculation or administration otherwise required of or
7for a benefit under this Section, the applicable retirement
8system may estimate an amount to be credited to or debited from
9a participant's cash balance account and then adjust the amount
10so credited or debited when more accurate information becomes
11available.
12    The applicable retirement system shall give to each
13participant in the optional cash balance plan who has not yet
14retired annual notice of (1) the balance in the participant's
15cash balance account and (2) an estimate of the retirement
16annuity that will be payable to the participant if he or she
17retires at age 59 1/2.
18    (d) Employee Contributions. In addition to the other
19contributions required under the applicable Article, each
20participant shall make contributions to the applicable
21retirement system at the rate of 2% of each payment of salary.
22The amount of each contribution shall be credited to the
23participant's cash balance account upon receipt and after the
24retirement system's reconciliation of the contribution.
25    (e) Optional Employer Contributions. Employers may make
26optional additional contributions to the applicable retirement

 

 

09700HB1447sam002- 18 -LRB097 05201 JDS 70340 a

1system on behalf of their employees who are participants in the
2optional cash balance plan in accordance with procedures
3prescribed by the retirement system, to the extent permitted by
4federal law and the rules prescribed by the retirement system.
5The optional additional contributions under this subsection
6are actual monetary contributions to the retirement system, and
7the amount of each optional additional contribution shall be
8credited to the participant's cash balance account upon receipt
9and after the retirement system's reconciliation of the
10contribution.
11    (f) Interest Credit. An amount representing earnings on
12investments shall be determined by the retirement system in
13accordance with this Section and credited to the participant's
14cash balance account for each fiscal year in which there is a
15positive balance in that account; except that no additional
16interest credit shall be credited while an annuity based on the
17account is being paid. The interest credit amount shall be a
18percentage of the average quarterly balance in the cash balance
19account during that fiscal year, and shall be calculated on
20June 30.
21    The percentage shall be the assumed treasury rate for the
22previous fiscal year, unless neither the retirement system's
23actual rate of investment earnings for the previous fiscal year
24nor the retirement system's actual rate of investment earnings
25for the five-year period ending at the end of the previous
26fiscal year is less than the assumed treasury rate.

 

 

09700HB1447sam002- 19 -LRB097 05201 JDS 70340 a

1    If both the retirement system's actual rate of investment
2earnings for the previous fiscal year and the actual rate of
3investment earnings for the five-year period ending at the end
4of the previous fiscal year are at least the assumed treasury
5rate, then the percentage shall be:
6        (i) the assumed treasury rate, plus
7        (ii) two-thirds of the amount of the actual rate of
8    investment earnings for the previous fiscal year that
9    exceeds the assumed treasury rate.
10However, in no event shall the percentage applied under this
11subsection exceed 10%.
12    For the purposes of this subsection only, "previous fiscal
13year" means fiscal year ending one year before the interest
14rate is calculated.
15    For the purposes of this subsection only, "assumed treasury
16rate" means the average annual yield of the 30-year U.S.
17Treasury Bond over the previous fiscal year, but not less than
184%.
19    When a person applies for a benefit under this Section, the
20retirement system shall apply an interest credit based on a
21proration of an estimate of what the interest credit will be
22for the relevant year. When the retirement system certifies the
23credit on June 30, it shall adjust the benefit accordingly.
24    (f-10) Distribution upon Termination of Employment. Upon
25termination of active employment with at least 5 years of
26service credit under the applicable retirement system and prior

 

 

09700HB1447sam002- 20 -LRB097 05201 JDS 70340 a

1to making application for an annuity under this Section, a
2participant in the optional cash balance plan may make an
3irrevocable election to distribute an amount not to exceed 40%
4of the balance in the participant's account in the form of a
5direct rollover to another qualified plan, to the extent
6allowed by federal law. If the participant makes such an
7election, then the amount distributed shall be debited from the
8participant's cash balance account. A participant in the
9optional cash balance plan shall be allowed only one
10distribution under this subsection. The remaining balance in
11the participant's account shall be used for the determination
12of other benefits provided under this Section.
13    (f-15) Refund. In lieu of receiving a distribution under
14subsection (f-10), at any time after terminating active
15employment under the applicable retirement system, but before
16receiving a retirement annuity under this Section, a
17participant in the optional cash balance plan may elect to
18receive a refund under this subsection. The refund shall
19consist of an amount equal to the amount of all employee
20contributions credited to the participant's account, but shall
21not include any interest credit or employer contributions. If
22the participant so requests, the refund may be paid in the form
23of a direct rollover to another qualified plan, to the extent
24allowed by federal law and in accordance with the rules of the
25applicable retirement system. Upon payment of the refund, the
26participant's notional cash balance account shall be closed.

 

 

09700HB1447sam002- 21 -LRB097 05201 JDS 70340 a

1    (g) Retirement Annuity. A participant in the optional cash
2balance plan may begin collecting a retirement annuity at age
359 1/2, but no earlier than the date of termination of active
4employment under the applicable retirement system.
5    The amount of the retirement annuity shall be calculated by
6the retirement system, based on the balance in the cash balance
7account, the assumption of future investment returns as
8specified in this subsection, the participant's election to
9have a lifetime survivor's annuity as specified in this
10subsection, the annual increase in retirement annuity as
11specified in subsection (h), the annual increase in survivor's
12annuity as specified in subsection (l), and any actuarial
13assumptions and tables adopted by the board of the retirement
14system for this purpose. The calculation shall determine the
15amount of retirement annuity, on an actuarially equivalent
16basis, that shall be designed to result in the balance in the
17participant's account arriving at zero on the date when the
18last payment of the retirement annuity (or survivor's annuity,
19if the participant elects to provide for a survivor's annuity
20pursuant to this subsection) is anticipated to be paid under
21the relevant actuarial assumptions. A retirement annuity or a
22survivor's annuity provided under this Section shall be a life
23annuity and shall not expire if the account balance equals
24zero.
25    The annuity payment shall begin on the date specified by
26the participant submitting a written application, which date

 

 

09700HB1447sam002- 22 -LRB097 05201 JDS 70340 a

1shall not be prior to termination of employment or more than
2one year before the application is received by the board;
3however, if the participant is not an employee of an employer
4participating in this System or in a participating system as
5defined in Article 20 of this Code on April 1 of the calendar
6year next following the calendar year in which the participant
7attains age 70 1/2, the annuity payment period shall begin on
8that date regardless of whether an application has been filed.
9    The participant may elect, under the participant's written
10application for retirement, to receive a reduced annuity
11payable for his or her life and to have a lifetime survivor's
12annuity in a monthly amount equal to 50%, 75%, or 100% of that
13reduced monthly amount, to be paid after the participant's
14death to his or her eligible survivor. Eligibility for a
15survivor's annuity shall be determined under the applicable
16Article of this Code.
17    For the purpose of calculating retirement annuities,
18future investment returns shall be assumed to be a percentage
19equal to the average yield of the 30-year U.S. Treasury Bond
20over the 5 fiscal years prior to the calculation of the initial
21retirement annuity, plus 250 basis points; but not less than 4%
22nor more than 8%.
23    (h) Annual Increase in Retirement Annuity. The retirement
24annuity shall be subject to an automatic annual increase in an
25amount equal to 3% of the originally granted annuity on each
26January 1 occurring on or after the first anniversary of the

 

 

09700HB1447sam002- 23 -LRB097 05201 JDS 70340 a

1annuity start date.
2    (i) Disability Benefits. There are no disability benefits
3provided under the optional cash balance plan, and no amounts
4for disability shall be deducted from the account of a
5participant in the optional cash balance plan. The disability
6benefits provided under the applicable retirement system apply
7to participants in the optional cash balance plan.
8    (j) Return to Service. Upon a return to service under the
9same retirement system after beginning to receive a retirement
10annuity under the optional cash balance plan, the retirement
11annuity shall be suspended and active participation in the
12optional cash balance plan shall resume. Upon termination of
13the employment, the retirement annuity shall resume in an
14amount to be recalculated in accordance with subsection (g),
15taking into effect the changes in the cash balance account. If
16a retired annuitant returns to service, his or her notional
17cash balance account shall be decreased by each payment of
18retirement annuity prior to the return to service.
19    (k) Survivor's Annuity - Death before Retirement. In the
20case of a participant in the optional cash balance plan who had
21less than 5 years of service under the applicable Article and
22had not begun receiving a retirement annuity, the eligible
23survivor shall be entitled only to a refund of employee
24contributions under subsection (f-15).
25    In the case of a participant in the optional cash balance
26plan who had at least 5 years of service under the applicable

 

 

09700HB1447sam002- 24 -LRB097 05201 JDS 70340 a

1Article and had not begun receiving a retirement annuity, the
2eligible survivor shall be entitled to receive a survivor's
3annuity beginning at age 59 1/2 upon written application. The
4survivor's annuity shall be calculated in the same manner as a
5retirement annuity under subsection (g). At any time before
6receiving a survivor's annuity, the eligible survivor may claim
7a distribution under subsection (f-10) or a refund under
8subsection (f-15). The deceased participant's account shall
9continue to receive interest credit until the eligible survivor
10begins to receive a survivor's annuity or receives a refund of
11employee contributions under subsection (f-15).
12    Eligibility for a survivor's annuity shall be determined
13under the applicable Article of this Code. A child's or
14parent's annuity for an otherwise eligible child or dependent
15parent shall be in the same amount, if any, prescribed under
16the applicable Article.
17    (l) Annual Increase in Survivor's Annuity. A survivor's
18annuity granted under subsection (g) or (k) shall be subject to
19an automatic annual increase in an amount equal to 3% of the
20originally granted annuity on each January 1 occurring on or
21after the first anniversary of the annuity start date.
22    (m) Applicability of Provisions. The following provisions,
23if and as they exist in this Code, do not apply to participants
24in the optional cash balance plan with respect to participation
25in the optional cash balance plan, except as they are
26specifically provided for in this Section:

 

 

09700HB1447sam002- 25 -LRB097 05201 JDS 70340 a

1        (1) minimum service or vesting requirements (other
2    than as provided in this Section);
3        (2) provisions limiting a retirement annuity to a
4    specified percentage of salary;
5        (3) provisions authorizing a minimum retirement or
6    survivor's annuity or a supplemental annuity;
7        (4) provisions authorizing any form of retirement
8    annuity or survivor's annuity not authorized under this
9    Section;
10        (5) provisions authorizing a reversionary annuity
11    (other than the survivor's annuity under subsection (g));
12        (6) provisions authorizing a refund of employee
13    contributions upon termination of service (other than upon
14    the death of the participant without an eligible survivor)
15    or any lump-sum payout in lieu of a retirement or
16    survivor's annuity (other than the distribution under
17    subsection (f-10) or the refund under subsection (f-15) of
18    this Section;
19        (7) provisions authorizing optional service credits or
20    the payment of optional additional contributions (other
21    than the optional employer contributions specifically
22    authorized in this Section); or
23        (8) a level income option.
24    The Retirement Systems Reciprocal Act (Article 20 of this
25Code) does not apply to participation in the optional cash
26balance plan and does not affect the calculation of benefits

 

 

09700HB1447sam002- 26 -LRB097 05201 JDS 70340 a

1payable under this Section.
2    The other provisions of this Code continue to apply to
3participants in the optional cash balance plan, to the extent
4that they do not conflict with this Section. In the case of a
5conflict between the provisions of this Section and any other
6provision of this Code, the provisions of this Section control.
7    (n) Rules. The Board of Trustees of the applicable
8retirement system may adopt rules and procedures for the
9implementation of this Section, including but not limited to
10determinations of how to integrate the administration of this
11Section with the requirements of the applicable Article and any
12other applicable provisions of this Code.
13    (o) Public Pension Division. The Public Pension Division of
14the Department of Insurance shall determine in October of each
15year the annual unadjusted percentage increase (but not less
16than zero) in the Consumer Price Index-U for the 12 months
17ending with the preceding September. The Division shall certify
18its determination to the Board of Trustees of the State
19Universities Retirement System by November 1 of each year.
20    (p) Actual Employer Contributions. Payment of employer
21contributions with respect to participants in the optional cash
22balance plan shall be the responsibility of the actual
23employer. These contributions shall be determined under and
24paid in accordance with the provisions of Sections 15-155.
25Optional additional contributions by employers may be paid in
26any amount, but must be paid in the manner specified by the

 

 

09700HB1447sam002- 27 -LRB097 05201 JDS 70340 a

1applicable retirement system.
2    (q) Prospective Modification. The provisions set forth in
3this Section are subject to prospective changes made by law
4provided that any such changes shall not apply to any benefits
5accrued under this Section prior to the effective date of any
6amendatory Act of the General Assembly.
7    (s) Qualified Plan Status. No provision of this Section
8shall be interpreted in a way that would cause the applicable
9retirement system to cease to be a qualified plan under section
10461 (a) of the Internal Revenue Code of 1986.
 
11    (40 ILCS 5/2-105.1 new)
12    Sec. 2-105.1. Tier I employee. "Tier I employee": A
13participant who first became a participant before January 1,
142011.
 
15    (40 ILCS 5/2-105.2 new)
16    Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a
17former Tier I employee who is receiving a retirement annuity.
 
18    (40 ILCS 5/2-107.9 new)
19    Sec. 2-107.9. Future increase in income. "Future increase
20in income": Any increase in income in any form offered for
21service as a member under this Article after June 30, 2013 that
22would qualify as "salary", as defined under Section 2-108, but
23for the fact that the increase in income was offered to the

 

 

09700HB1447sam002- 28 -LRB097 05201 JDS 70340 a

1member on the condition that it not qualify as salary and was
2accepted by the member subject to that condition.
 
3    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
4    Sec. 2-108. Salary. "Salary": (1) For members of the
5General Assembly, the total compensation paid to the member by
6the State for one year of service, including the additional
7amounts, if any, paid to the member as an officer pursuant to
8Section 1 of "An Act in relation to the compensation and
9emoluments of the members of the General Assembly", approved
10December 6, 1907, as now or hereafter amended.
11    (2) For the State executive officers specified in Section
122-105, the total compensation paid to the member for one year
13of service.
14    (3) For members of the System who are participants under
15Section 2-117.1, or who are serving as Clerk or Assistant Clerk
16of the House of Representatives or Secretary or Assistant
17Secretary of the Senate, the total compensation paid to the
18member for one year of service, but not to exceed the salary of
19the highest salaried officer of the General Assembly.
20    However, in the event that federal law results in any
21participant receiving imputed income based on the value of
22group term life insurance provided by the State, such imputed
23income shall not be included in salary for the purposes of this
24Article.
25    Notwithstanding any other provision of this Section,

 

 

09700HB1447sam002- 29 -LRB097 05201 JDS 70340 a

1"salary" does not include any future increase in income that is
2offered for service as a member under this Article pursuant to
3the requirements of subsection (c) of Section 2-110.3 and
4accepted by a Tier I employee, or a Tier I retiree returning to
5active service, who has made an election under paragraph (2) of
6subsection (a) or (a-5) of Section Section 2-110.3.
7(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
8    (40 ILCS 5/2-110.3 new)
9    Sec. 2-110.3. Election by Tier I employees and Tier I
10retirees.
11    (a) Each Tier I employee shall make an irrevocable election
12either:
13        (1) to agree to the following:
14            (i) to have the amount of the automatic annual
15        increases in his or her retirement annuity that are
16        otherwise provided for in this Article calculated,
17        instead, as provided in subsection (a-1) of Section
18        2-119.1; and
19            (ii) to have his or her eligibility for automatic
20        annual increases in retirement annuity postponed as
21        provided in subsection (a-2) of Section 2-119.1 and to
22        relinquish the additional increases provided in
23        subsection (b) of Section 2-119.1; or
24        (2) to not agree to items (i) and (ii) as set forth in
25    paragraph (1) of this subsection.

 

 

09700HB1447sam002- 30 -LRB097 05201 JDS 70340 a

1    The election required under this subsection (a) shall be
2made by each Tier I employee no earlier than January 1, 2013
3and no later than May 31, 2013, except that:
4        (i) a person who becomes a Tier I employee under this
5    Article after January 1, 2013 must make the election under
6    this subsection (a) within 60 days after becoming a Tier I
7    employee;
8        (ii) a person who returns to active service as a Tier I
9    employee under this Article after January 1, 2013 and has
10    not yet made an election under this Section must make the
11    election under this subsection (a) within 60 days after
12    returning to active service as a Tier I employee; and
13        (iii) a person who made the election under subsection
14    (a-5) as a Tier I retiree remains bound by that election
15    and shall not make a later election under this subsection
16    (a).
17    If a Tier I employee fails for any reason to make a
18required election under this subsection within the time
19specified, then the employee shall be deemed to have made the
20election under paragraph (2) of this subsection.
21    (a-5) Each Tier I retiree shall make an irrevocable
22election either:
23        (1) to agree to the following:
24            (i) to have the amount of the automatic annual
25        increases in his or her retirement annuity that are
26        otherwise provided for in this Article calculated,

 

 

09700HB1447sam002- 31 -LRB097 05201 JDS 70340 a

1        instead, as provided in subsection (a-1) of Section
2        2-119.1; and
3            (ii) to have his or her eligibility for automatic
4        annual increases in retirement annuity postponed as
5        provided in subsection (a-2) of Section 2-119.1 and to
6        relinquish the additional increases provided in
7        subsection (b) of Section 2-119.1; or
8        (2) to not agree to items (i) and (ii) as set forth in
9    paragraph (1) of this subsection.
10    The election required under this subsection (a-5) shall be
11made by each Tier I retiree no earlier than January 1, 2013 and
12no later than May 31, 2013, except that:
13        (i) a person who becomes a Tier I retiree under this
14    Article on or after January 1, 2013 must make the election
15    under this subsection (a-5) within 60 days after becoming a
16    Tier I retiree; and
17        (ii) a person who made the election under subsection
18    (a) as a Tier I employee remains bound by that election and
19    shall not make a later election under this subsection
20    (a-5).
21    If a Tier I retiree fails for any reason to make a required
22election under this subsection within the time specified, then
23the Tier I retiree shall be deemed to have made the election
24under paragraph (2) of this subsection.
25    (a-10) All elections under subsection (a) or (a-5) that are
26made or deemed to be made before June 1, 2013 shall take effect

 

 

09700HB1447sam002- 32 -LRB097 05201 JDS 70340 a

1on July 1, 2013. Elections that are made or deemed to be made
2on or after June 1, 2013 shall take effect on the first day of
3the month following the month in which the election is made or
4deemed to be made.
5    (b) As adequate and legal consideration provided under this
6amendatory Act of the 97th General Assembly for making the
7election under paragraph (1) of subsection (a) of this Section,
8any future increases in income offered for service as a member
9under this Article to a Tier I employee who has made the
10election under paragraph (1) of subsection (a) of this Section
11shall be offered expressly and irrevocably as constituting
12salary under Section 2-108.
13    As adequate and legal consideration provided under this
14amendatory Act of the 97th General Assembly for making the
15election under paragraph (1) of subsection (a-5) of this
16Section, any future increases in income offered for service as
17a member under this Article to a Tier I retiree who returns to
18active service after having made the election under paragraph
19(1) of subsection (a-5) of this Section shall be offered
20expressly and irrevocably as constituting salary under Section
212-108.
22    (c) A Tier I employee who makes the election under
23paragraph (2) of subsection (a) of this Section shall not be
24subject to items (i) and (ii) set forth in paragraph (1) of
25subsection (a) of this Section. However, any future increases
26in income offered for service as a member under this Article to

 

 

09700HB1447sam002- 33 -LRB097 05201 JDS 70340 a

1a Tier I employee who has made the election under paragraph (2)
2of subsection (a) of this Section shall be offered expressly
3and irrevocably as not constituting salary under Section 2-108,
4and the member may not accept any future increase in income
5that is offered in violation of this requirement.
6    A Tier I retiree who makes the election under paragraph (2)
7of subsection (a-5) of this Section shall not be subject to
8items (i) and (ii) set forth in paragraph (1) of subsection
9(a-5) of this Section. However, any future increases in income
10offered for service as a member under this Article to a Tier I
11retiree who returns to active service and has made the election
12under paragraph (2) of subsection (a-5) of this Section shall
13be offered expressly and irrevocably as not constituting salary
14under Section 2-108, and the member may not accept any future
15increase in income that is offered in violation of this
16requirement.
17    (d) The System shall make a good faith effort to contact
18each Tier I employee and Tier I retiree subject to this
19Section. The System shall mail information describing the
20required election to each Tier I employee and Tier I retiree by
21United States Postal Service mail to his or her last known
22address on file with the System. If the Tier I employee or Tier
23I retiree is not responsive to other means of contact, it is
24sufficient for the System to publish the details of any
25required elections on its website or to publish those details
26in a regularly published newsletter or other existing public

 

 

09700HB1447sam002- 34 -LRB097 05201 JDS 70340 a

1forum.
2    Tier I employees and Tier I retirees who are subject to
3this Section shall be provided with an election packet
4containing information regarding their options, as well as the
5forms necessary to make the required election. Upon request,
6the System shall offer Tier I employees and Tier I retirees an
7opportunity to receive information from the System before
8making the required election. The information may be provided
9through video materials, group presentations, individual
10consultation with a member or authorized representative of the
11System in person or by telephone or other electronic means, or
12any combination of those methods. The System shall not provide
13advice or counseling with respect to which election a Tier I
14employee or Tier I retiree should make or specific to the legal
15or tax circumstances of or consequences to the Tier I employee
16or Tier I retiree.
17    The System shall inform Tier I employees and Tier I
18retirees in the election packet required under this subsection
19that the Tier I employee or Tier I retiree may also wish to
20obtain information and counsel relating to the election
21required under this Section from any other available source,
22including but not limited to labor organizations and private
23counsel.
24    In no event shall the System, its staff, or the Board be
25held liable for any information given to a member, beneficiary,
26or annuitant regarding the elections under this Section. The

 

 

09700HB1447sam002- 35 -LRB097 05201 JDS 70340 a

1System shall coordinate with the Illinois Department of Central
2Management Services and each other retirement system
3administering an election in accordance with this amendatory
4Act of the 97th General Assembly to provide information
5concerning the impact of the election set forth in this
6Section.
7    (e) Notwithstanding any other provision of law, any future
8increases in income offered for service as a member must be
9offered expressly and irrevocably as not constituting "salary"
10under Section 2-108 to any Tier I employee, or Tier I retiree
11returning to active service, who has made an election under
12paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A
13Tier I employee, or Tier I retiree returning to active service,
14who has made an election under paragraph (2) or subsection (a)
15or (a-5) of Section 2-110.3 shall not accept any future
16increase in income that is offered for service as a member
17under this Article in violation of the requirement set forth in
18this subsection.
19    (f) A member's election under this Section is not a
20prohibited election under subdivision (j)(1) of Section 1-119
21of this Code.
22    (g) Qualified Plan Status. No provision of this Section
23shall be interpreted in a way that would cause the System to
24cease to be a qualified plan under section 461 (a) of the
25Internal Revenue Code of 1986.
 

 

 

09700HB1447sam002- 36 -LRB097 05201 JDS 70340 a

1    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
2    Sec. 2-119.1. Automatic increase in retirement annuity.
3    (a) Except as provided in subsections (a-1) and (a-2), a A
4participant who retires after June 30, 1967, and who has not
5received an initial increase under this Section before the
6effective date of this amendatory Act of 1991, shall, in
7January or July next following the first anniversary of
8retirement, whichever occurs first, and in the same month of
9each year thereafter, but in no event prior to age 60, have the
10amount of the originally granted retirement annuity increased
11as follows: for each year through 1971, 1 1/2%; for each year
12from 1972 through 1979, 2%; and for 1980 and each year
13thereafter, 3%. Annuitants who have received an initial
14increase under this subsection prior to the effective date of
15this amendatory Act of 1991 shall continue to receive their
16annual increases in the same month as the initial increase.
17    (a-1) Notwithstanding any other provision of this Article,
18for a Tier I employee or Tier I retiree who made the election
19under paragraph (1) of subsection (a) or (a-5) of Section
202-110.3, the amount of each automatic annual increase in
21retirement annuity occurring on or after the effective date of
22that election shall be 3% or one-half of the annual unadjusted
23percentage increase, if any, in the Consumer Price Index-U for
24the 12 months ending with the preceding September, whichever is
25less, of the originally granted retirement annuity. For the
26purposes of this Section, "Consumer Price Index-U" means the

 

 

09700HB1447sam002- 37 -LRB097 05201 JDS 70340 a

1index published by the Bureau of Labor Statistics of the United
2States Department of Labor that measures the average change in
3prices of goods and services purchased by all urban consumers,
4United States city average, all items, 1982-84 = 100.
5    (a-2) For a Tier I employee or Tier I retiree who made the
6election under paragraph (1) of subsection (a) or (a-5) of
7Section 2-110.3, the monthly retirement annuity shall first be
8subject to annual increases on the January 1 occurring on or
9next after the attainment of age 67 or the January 1 occurring
10on or next after the fifth anniversary of the annuity start
11date, whichever occurs earlier. If on the effective date of the
12election under paragraph (1) of subsection (a-5) of Section
132-110.3 a Tier I retiree has already received an annual
14increase under this Section but does not yet meet the new
15eligibility requirements of this subsection, the annual
16increases already received shall continue in force, but no
17additional annual increase shall be granted until the Tier I
18retiree meets the new eligibility requirements.
19    (b) Beginning January 1, 1990, for eligible participants
20who remain in service after attaining 20 years of creditable
21service, the 3% increases provided under subsection (a) shall
22begin to accrue on the January 1 next following the date upon
23which the participant (1) attains age 55, or (2) attains 20
24years of creditable service, whichever occurs later, and shall
25continue to accrue while the participant remains in service;
26such increases shall become payable on January 1 or July 1,

 

 

09700HB1447sam002- 38 -LRB097 05201 JDS 70340 a

1whichever occurs first, next following the first anniversary of
2retirement. For any person who has service credit in the System
3for the entire period from January 15, 1969 through December
431, 1992, regardless of the date of termination of service, the
5reference to age 55 in clause (1) of this subsection (b) shall
6be deemed to mean age 50.
7    This subsection (b) does not apply to any person who first
8becomes a member of the System after August 8, 2003 (the
9effective date of Public Act 93-494) or (ii) has made the
10election under paragraph (1) of subsection (a) or (a-5) of
11Section 2-110.3; except that if on the effective date of the
12election under paragraph (1) of subsection (a-5) of Section
132-110.3 a Tier I retiree has already received a retirement
14annuity based on any annual increases under this subsection,
15those annual increases under this subsection shall continue in
16force this amendatory Act of the 93rd General Assembly.
17    (b-5) Notwithstanding any other provision of this Article,
18a participant who first becomes a participant on or after
19January 1, 2011 (the effective date of Public Act 96-889)
20shall, in January or July next following the first anniversary
21of retirement, whichever occurs first, and in the same month of
22each year thereafter, but in no event prior to age 67, have the
23amount of the retirement annuity then being paid increased by
243% or the annual unadjusted percentage increase in the Consumer
25Price Index for All Urban Consumers as determined by the Public
26Pension Division of the Department of Insurance under

 

 

09700HB1447sam002- 39 -LRB097 05201 JDS 70340 a

1subsection (a) of Section 2-108.1, whichever is less.
2    (c) The foregoing provisions relating to automatic
3increases are not applicable to a participant who retires
4before having made contributions (at the rate prescribed in
5Section 2-126) for automatic increases for less than the
6equivalent of one full year. However, in order to be eligible
7for the automatic increases, such a participant may make
8arrangements to pay to the system the amount required to bring
9the total contributions for the automatic increase to the
10equivalent of one year's contributions based upon his or her
11last salary.
12    (d) A participant who terminated service prior to July 1,
131967, with at least 14 years of service is entitled to an
14increase in retirement annuity beginning January, 1976, and to
15additional increases in January of each year thereafter.
16    The initial increase shall be 1 1/2% of the originally
17granted retirement annuity multiplied by the number of full
18years that the annuitant was in receipt of such annuity prior
19to January 1, 1972, plus 2% of the originally granted
20retirement annuity for each year after that date. The
21subsequent annual increases shall be at the rate of 2% of the
22originally granted retirement annuity for each year through
231979 and at the rate of 3% for 1980 and thereafter.
24    (e) Beginning January 1, 1990, all automatic annual
25increases payable under this Section shall be calculated as a
26percentage of the total annuity payable at the time of the

 

 

09700HB1447sam002- 40 -LRB097 05201 JDS 70340 a

1increase, including previous increases granted under this
2Article.
3(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
4    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
5    Sec. 2-124. Contributions by State.
6    (a) Except as otherwise provided in this Section, the The
7State shall make contributions to the System by appropriations
8of amounts which, together with the contributions of
9participants, interest earned on investments, and other income
10will meet the cost of maintaining and administering the System
11on a 90% funded basis in accordance with actuarial
12recommendations.
13    (b) The Board shall determine the amount of State
14contributions required for each fiscal year on the basis of the
15actuarial tables and other assumptions adopted by the Board and
16the prescribed rate of interest, using the formula in
17subsection (c).
18    (c) Except as otherwise provided in this Section, for For
19State fiscal years 2012 through 2045, the minimum contribution
20to the System to be made by the State for each fiscal year
21shall be an amount determined by the System to be sufficient to
22bring the total assets of the System up to 90% of the total
23actuarial liabilities of the System by the end of State fiscal
24year 2045. In making these determinations, the required State
25contribution shall be calculated each year as a level

 

 

09700HB1447sam002- 41 -LRB097 05201 JDS 70340 a

1percentage of payroll over the years remaining to and including
2fiscal year 2045 and shall be determined under the projected
3unit credit actuarial cost method.
4    For State fiscal years 1996 through 2005, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7so that by State fiscal year 2011, the State is contributing at
8the rate required under this Section.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2006 is
11$4,157,000.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2007 is
14$5,220,300.
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$10,454,000 and shall be made from the proceeds of bonds sold
24in 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

 

 

09700HB1447sam002- 42 -LRB097 05201 JDS 70340 a

1proceeds, (ii) any amounts received from the General Revenue
2Fund in fiscal year 2010, and (iii) any reduction in bond
3proceeds due to the issuance of discounted bonds, if
4applicable.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for State fiscal year 2011 is
7the amount recertified by the System on or before April 1, 2011
8pursuant to Section 2-134 and shall be made from the proceeds
9of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
10the General Obligation Bond Act, less (i) the pro rata share of
11bond sale expenses determined by the System's share of total
12bond proceeds, (ii) any amounts received from the General
13Revenue Fund in fiscal year 2011, and (iii) any reduction in
14bond proceeds due to the issuance of discounted bonds, if
15applicable.
16    Except as otherwise provided in this Section, beginning
17Beginning 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

 

 

09700HB1447sam002- 43 -LRB097 05201 JDS 70340 a

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 2-134, shall not
11exceed an amount equal to (i) the amount of the required State
12contribution that would have been calculated under this Section
13for 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

 

 

09700HB1447sam002- 44 -LRB097 05201 JDS 70340 a

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    (c-1) If at least 50% of Tier I employees making an
7election under Section 2-110.3 before June 1, 2013 choose the
8option under paragraph (1) of subsection (a) of that Section,
9then:
10        (1) In lieu of the State contributions required under
11    subsection (c), for State fiscal years 2014 through 2043
12    the minimum contribution to the System to be made by the
13    State for each fiscal year shall be an amount determined by
14    the System to be equal to the sum of (1) the State's
15    portion of the projected normal cost for that fiscal year,
16    plus (2) an amount sufficient to bring the total assets of
17    the System up to 100% of the total actuarial liabilities of
18    the System by the end of State fiscal year 2043. In making
19    these determinations, the required State contribution
20    shall be calculated each year as a level percentage of
21    payroll over the years remaining to and including fiscal
22    year 2043 and shall be determined under the projected unit
23    credit actuarial cost method.
24        (2) Beginning in State fiscal year 2043, the minimum
25    State contribution for each fiscal year shall be the amount
26    needed to maintain the total assets of the System at 100%

 

 

09700HB1447sam002- 45 -LRB097 05201 JDS 70340 a

1    of the total actuarial liabilities of the System.
2    (c-2) If less than 50% of Tier I employees making an
3election under Section 2-110.3 before June 1, 2013 choose the
4option under paragraph (1) of subsection (a) of that Section,
5then the annual required contribution to the System to be made
6by the State shall be determined under subsection (c) of this
7Section, instead of the annual required contribution otherwise
8specified in subsection (c-1) of this Section.
9    (d) For purposes of determining the required State
10contribution to the System, the value of the System's assets
11shall be equal to the actuarial value of the System's assets,
12which shall be calculated as follows:
13    As of June 30, 2008, the actuarial value of the System's
14assets shall be equal to the market value of the assets as of
15that date. In determining the actuarial value of the System's
16assets for fiscal years after June 30, 2008, any actuarial
17gains or losses from investment return incurred in a fiscal
18year shall be recognized in equal annual amounts over the
195-year period following that fiscal year.
20    (e) For purposes of determining the required State
21contribution to the system for a particular year, the actuarial
22value of assets shall be assumed to earn a rate of return equal
23to the system's actuarially assumed rate of return.
24(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09;
2596-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff.
263-18-11; revised 4-6-11.)
 

 

 

09700HB1447sam002- 46 -LRB097 05201 JDS 70340 a

1    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
2    Sec. 2-134. To certify required State contributions and
3submit vouchers.
4    (a) The Board shall certify to the Governor on or before
5December 15 of each year until December 15, 2011 the amount of
6the required State contribution to the System for the next
7fiscal year and shall specifically identify the System's
8projected State normal cost for that fiscal year. The
9certification shall include a copy of the actuarial
10recommendations upon which it is based and shall specifically
11identify the System's projected State normal cost for that
12fiscal year.
13    On or before November 1 of each year, beginning November 1,
142012, the Board shall submit to the State Actuary, the
15Governor, and the General Assembly a proposed certification of
16the amount of the required State contribution to the System for
17the next fiscal year, along with all of the actuarial
18assumptions, calculations, and data upon which that proposed
19certification is based. On or before January 1 of each year
20beginning January 1, 2013, the State Actuary shall issue a
21preliminary report concerning the proposed certification and
22identifying, if necessary, recommended changes in actuarial
23assumptions that the Board must consider before finalizing its
24certification of the required State contributions. On or before
25January 15, 2013 and every January 15 thereafter, the Board

 

 

09700HB1447sam002- 47 -LRB097 05201 JDS 70340 a

1shall certify to the Governor and the General Assembly the
2amount of the required State contribution for the next fiscal
3year. The Board's certification must note any deviations from
4the State Actuary's recommended changes, the reason or reasons
5for not following the State Actuary's recommended changes, and
6the fiscal impact of not following the State Actuary's
7recommended changes on the required State contribution.
8    On or before May 1, 2004, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2005, taking
11into account the amounts appropriated to and received by the
12System under subsection (d) of Section 7.2 of the General
13Obligation Bond Act.
14    On or before July 1, 2005, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2006, taking
17into account the changes in required State contributions made
18by this amendatory Act of the 94th General Assembly.
19    On or before April 1, 2011, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2011, applying
22the changes made by Public Act 96-889 to the System's assets
23and liabilities as of June 30, 2009 as though Public Act 96-889
24was approved on that date.
25    (b) Beginning in State fiscal year 1996, on or as soon as
26possible after the 15th day of each month the Board shall

 

 

09700HB1447sam002- 48 -LRB097 05201 JDS 70340 a

1submit vouchers for payment of State contributions to the
2System, in a total monthly amount of one-twelfth of the
3required annual State contribution certified under subsection
4(a). From the effective date of this amendatory Act of the 93rd
5General Assembly through June 30, 2004, the Board shall not
6submit vouchers for the remainder of fiscal year 2004 in excess
7of the fiscal year 2004 certified contribution amount
8determined under this Section after taking into consideration
9the transfer to the System under subsection (d) of Section
106z-61 of the State Finance Act. These vouchers shall be paid by
11the State Comptroller and Treasurer by warrants drawn on the
12funds appropriated to the System for that fiscal year. If in
13any month the amount remaining unexpended from all other
14appropriations to the System for the applicable fiscal year
15(including the appropriations to the System under Section 8.12
16of the State Finance Act and Section 1 of the State Pension
17Funds Continuing Appropriation Act) is less than the amount
18lawfully vouchered under this Section, the difference shall be
19paid from the General Revenue Fund under the continuing
20appropriation authority provided in Section 1.1 of the State
21Pension Funds Continuing Appropriation Act.
22    (c) The full amount of any annual appropriation for the
23System for State fiscal year 1995 shall be transferred and made
24available to the System at the beginning of that fiscal year at
25the request of the Board. Any excess funds remaining at the end
26of any fiscal year from appropriations shall be retained by the

 

 

09700HB1447sam002- 49 -LRB097 05201 JDS 70340 a

1System as a general reserve to meet the System's accrued
2liabilities.
3(Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11;
496-1511, eff. 1-27-11.)
 
5    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
6    Sec. 7-109. Employee.
7    (1) "Employee" means any person who:
8        (a) 1. Receives earnings as payment for the performance
9        of personal services or official duties out of the
10        general fund of a municipality, or out of any special
11        fund or funds controlled by a municipality, or by an
12        instrumentality thereof, or a participating
13        instrumentality, including, in counties, the fees or
14        earnings of any county fee office; and
15            2. Under the usual common law rules applicable in
16        determining the employer-employee relationship, has
17        the status of an employee with a municipality, or any
18        instrumentality thereof, or a participating
19        instrumentality, including aldermen, county
20        supervisors and other persons (excepting those
21        employed as independent contractors) who are paid
22        compensation, fees, allowances or other emolument for
23        official duties, and, in counties, the several county
24        fee offices.
25        (b) Serves as a township treasurer appointed under the

 

 

09700HB1447sam002- 50 -LRB097 05201 JDS 70340 a

1    School Code, as heretofore or hereafter amended, and who
2    receives for such services regular compensation as
3    distinguished from per diem compensation, and any regular
4    employee in the office of any township treasurer whether or
5    not his earnings are paid from the income of the permanent
6    township fund or from funds subject to distribution to the
7    several school districts and parts of school districts as
8    provided in the School Code, or from both such sources; or
9    is the chief executive officer, chief educational officer,
10    chief fiscal officer, or other employee of a Financial
11    Oversight Panel established pursuant to Article 1H of the
12    School Code, other than a superintendent or certified
13    school business official, except that such person shall not
14    be treated as an employee under this Section if that person
15    has negotiated with the Financial Oversight Panel, in
16    conjunction with the school district, a contractual
17    agreement for exclusion from this Section.
18        (c) Holds an elective office in a municipality,
19    instrumentality thereof or participating instrumentality.
20    (2) "Employee" does not include persons who:
21        (a) Are eligible for inclusion under any of the
22    following laws:
23            1. "An Act in relation to an Illinois State
24        Teachers' Pension and Retirement Fund", approved May
25        27, 1915, as amended;
26            2. Articles 15 and 16 of this Code.

 

 

09700HB1447sam002- 51 -LRB097 05201 JDS 70340 a

1        However, such persons shall be included as employees to
2    the extent of earnings that are not eligible for inclusion
3    under the foregoing laws for services not of an
4    instructional nature of any kind.
5        However, any member of the armed forces who is employed
6    as a teacher of subjects in the Reserve Officers Training
7    Corps of any school and who is not certified under the law
8    governing the certification of teachers shall be included
9    as an employee.
10        (b) Are designated by the governing body of a
11    municipality in which a pension fund is required by law to
12    be established for policemen or firemen, respectively, as
13    performing police or fire protection duties, except that
14    when such persons are the heads of the police or fire
15    department and are not eligible to be included within any
16    such pension fund, they shall be included within this
17    Article; provided, that such persons shall not be excluded
18    to the extent of concurrent service and earnings not
19    designated as being for police or fire protection duties.
20    However, (i) any head of a police department who was a
21    participant under this Article immediately before October
22    1, 1977 and did not elect, under Section 3-109 of this Act,
23    to participate in a police pension fund shall be an
24    "employee", and (ii) any chief of police who elects to
25    participate in this Fund under Section 3-109.1 of this
26    Code, regardless of whether such person continues to be

 

 

09700HB1447sam002- 52 -LRB097 05201 JDS 70340 a

1    employed as chief of police or is employed in some other
2    rank or capacity within the police department, shall be an
3    employee under this Article for so long as such person is
4    employed to perform police duties by a participating
5    municipality and has not lawfully rescinded that election.
6        (c) After August 26, 2011 (the effective date of Public
7    Act 97-609) this amendatory Act of the 97th General
8    Assembly, are contributors to or eligible to contribute to
9    a Taft-Hartley pension plan established on or before June
10    1, 2011 and are employees of a theatre, arena, or
11    convention center that is located in a municipality located
12    in a county with a population greater than 5,000,000, and
13    to which the participating municipality is required to
14    contribute as the person's employer based on earnings from
15    the municipality. Nothing in this paragraph shall affect
16    service credit or creditable service for any period of
17    service prior to August 26, 2011 the effective date of this
18    amendatory Act of the 97th General Assembly, and this
19    paragraph shall not apply to individuals who are
20    participating in the Fund prior to August 26, 2011 the
21    effective date of this amendatory Act of the 97th General
22    Assembly.
23        (d) Become an employee of any of the following
24    participating instrumentalities on or after the effective
25    date of this amendatory Act of the 97th General Assembly:
26    the Illinois Municipal League; the Illinois Association of

 

 

09700HB1447sam002- 53 -LRB097 05201 JDS 70340 a

1    Park Districts; the Illinois Supervisors, County
2    Commissioners and Superintendents of Highways Association;
3    the Township School District Trustees; the United Counties
4    Council; or the Will County Governmental League.
5    (3) All persons, including, without limitation, public
6defenders and probation officers, who receive earnings from
7general or special funds of a county for performance of
8personal services or official duties within the territorial
9limits of the county, are employees of the county (unless
10excluded by subsection (2) of this Section) notwithstanding
11that they may be appointed by and are subject to the direction
12of a person or persons other than a county board or a county
13officer. It is hereby established that an employer-employee
14relationship under the usual common law rules exists between
15such employees and the county paying their salaries by reason
16of the fact that the county boards fix their rates of
17compensation, appropriate funds for payment of their earnings
18and otherwise exercise control over them. This finding and this
19amendatory Act shall apply to all such employees from the date
20of appointment whether such date is prior to or after the
21effective date of this amendatory Act and is intended to
22clarify existing law pertaining to their status as
23participating employees in the Fund.
24(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
25revised 9-28-11.)
 

 

 

09700HB1447sam002- 54 -LRB097 05201 JDS 70340 a

1    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
2    Sec. 14-103.10. Compensation.
3    (a) For periods of service prior to January 1, 1978, the
4full rate of salary or wages payable to an employee for
5personal services performed if he worked the full normal
6working period for his position, subject to the following
7maximum amounts: (1) prior to July 1, 1951, $400 per month or
8$4,800 per year; (2) between July 1, 1951 and June 30, 1957
9inclusive, $625 per month or $7,500 per year; (3) beginning
10July 1, 1957, no limitation.
11    In the case of service of an employee in a position
12involving part-time employment, compensation shall be
13determined according to the employees' earnings record.
14    (b) For periods of service on and after January 1, 1978,
15all remuneration for personal services performed defined as
16"wages" under the Social Security Enabling Act, including that
17part of such remuneration which is in excess of any maximum
18limitation provided in such Act, and including any benefits
19received by an employee under a sick pay plan in effect before
20January 1, 1981, but excluding lump sum salary payments:
21        (1) for vacation,
22        (2) for accumulated unused sick leave,
23        (3) upon discharge or dismissal,
24        (4) for approved holidays.
25    (c) For periods of service on or after December 16, 1978,
26compensation also includes any benefits, other than lump sum

 

 

09700HB1447sam002- 55 -LRB097 05201 JDS 70340 a

1salary payments made at termination of employment, which an
2employee receives or is eligible to receive under a sick pay
3plan authorized by law.
4    (d) For periods of service after September 30, 1985,
5compensation also includes any remuneration for personal
6services not included as "wages" under the Social Security
7Enabling Act, which is deducted for purposes of participation
8in a program established pursuant to Section 125 of the
9Internal Revenue Code or its successor laws.
10    (e) For members for which Section 1-160 applies for periods
11of service on and after January 1, 2011, all remuneration for
12personal services performed defined as "wages" under the Social
13Security Enabling Act, excluding remuneration that is in excess
14of the annual earnings, salary, or wages of a member or
15participant, as provided in subsection (b-5) of Section 1-160,
16but including any benefits received by an employee under a sick
17pay plan in effect before January 1, 1981. Compensation shall
18exclude lump sum salary payments:
19        (1) for vacation;
20        (2) for accumulated unused sick leave;
21        (3) upon discharge or dismissal; and
22        (4) for approved holidays.
23    (f) Notwithstanding any other provision of this Section,
24"compensation" does not include any future increase in income
25offered by a department under this Article pursuant to the
26requirements of subsection (c) of Section 14-106.5 that is

 

 

09700HB1447sam002- 56 -LRB097 05201 JDS 70340 a

1accepted by a Tier I employee, or a Tier I retiree returning to
2active service, who has made an election under paragraph (2) of
3subsection (a) or (a-5) of Section 14-106.5.
4    (g) Notwithstanding the other provisions of this Section,
5for an employee who first becomes a participant on or after the
6effective date of this amendatory Act of the 97th General
7Assembly, "compensation" does not include any payments or
8reimbursements for travel vouchers.
9(Source: P.A. 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/14-103.40 new)
11    Sec. 14-103.40. Tier I employee. "Tier I employee": An
12employee under this Article who first became a member or
13participant before January 1, 2011 under any reciprocal
14retirement system or pension fund established under this Code
15other than a retirement system or pension fund established
16under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
17    (40 ILCS 5/14-103.41 new)
18    Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former
19Tier I employee who is receiving a retirement annuity.
 
20    (40 ILCS 5/14-103.42 new)
21    Sec. 14-103.42. Future increase in income. "Future
22increase in income": Any increase in income in any form offered
23by a department to an employee under this Article after June

 

 

09700HB1447sam002- 57 -LRB097 05201 JDS 70340 a

130, 2013 that would qualify as "compensation", as defined under
2Section 14-103.10, but for the fact that the department offered
3the increase in income to the employee on the condition that it
4not qualify as compensation and the employee accepted the
5increase in income subject to that condition. The term "future
6increase in income" does not include an increase in income in
7any form that is paid to a Tier I employee under an employment
8contract or collective bargaining agreement that is in effect
9on the effective date of this Section but does include an
10increase in income in any form pursuant to an extension,
11amendment, or renewal of any such employment contract or
12collective bargaining agreement on or after the effective date
13of this amendatory Act of the 97th General Assembly.
 
14    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)
15    Sec. 14-106. Membership service credit.
16    (a) After January 1, 1944, all service of a member since he
17last became a member with respect to which contributions are
18made shall count as membership service; provided, that for
19service on and after July 1, 1950, 12 months of service shall
20constitute a year of membership service, the completion of 15
21days or more of service during any month shall constitute 1
22month of membership service, 8 to 15 days shall constitute 1/2
23month of membership service and less than 8 days shall
24constitute 1/4 month of membership service. The payroll record
25of each department shall constitute conclusive evidence of the

 

 

09700HB1447sam002- 58 -LRB097 05201 JDS 70340 a

1record of service rendered by a member.
2    (b) For a member who is employed and paid on an
3academic-year basis rather than on a 12-month annual basis,
4employment for a full academic year shall constitute a full
5year of membership service, except that the member shall not
6receive more than one year of membership service credit (plus
7any additional service credit granted for unused sick leave)
8for service during any 12-month period. This subsection (b)
9applies to all such service for which the member has not begun
10to receive a retirement annuity before January 1, 2001.
11    (c) A member who first participated in this System before
12the effective date of this amendatory Act of the 97th General
13Assembly shall be entitled to additional service credit, under
14rules prescribed by the Board, for accumulated unused sick
15leave credited to his account in the last Department on the
16date of withdrawal from service or for any period for which he
17would have been eligible to receive benefits under a sick pay
18plan authorized by law, if he had suffered a sickness or
19accident on the date of withdrawal from service. It shall be
20the responsibility of the last Department to certify to the
21Board the length of time salary or benefits would have been
22paid to the member based upon the accumulated unused sick leave
23or the applicable sick pay plan if he had become entitled
24thereto because of sickness on the date that his status as an
25employee terminated. This period of service credit granted
26under this paragraph shall not be considered in determining the

 

 

09700HB1447sam002- 59 -LRB097 05201 JDS 70340 a

1date the retirement annuity is to begin, or final average
2compensation.
3    Service credit is not available for unused sick leave
4accumulated by a person who first participates in this System
5on or after the effective date of this amendatory Act of the
697th General Assembly.
7(Source: P.A. 92-14, eff. 6-28-01.)
 
8    (40 ILCS 5/14-106.5 new)
9    Sec. 14-106.5. Election by Tier I employees and Tier I
10retirees.
11    (a) Each Tier I employee shall make an irrevocable election
12either:
13        (1) to agree to the following:
14            (i) to have the amount of the automatic annual
15        increases in his or her retirement annuity that are
16        otherwise provided for in this Article calculated,
17        instead, as provided in subsection (a-1) of Section
18        14-114; and
19            (ii) to have his or her eligibility for automatic
20        annual increases in retirement annuity postponed as
21        provided in subsection (a-2) of Section 14-114; or
22        (2) to not agree to items (i) and (ii) as set forth in
23    paragraph (1) of this subsection.
24    The election required under this subsection (a) shall be
25made by each Tier I employee no earlier than January 1, 2013

 

 

09700HB1447sam002- 60 -LRB097 05201 JDS 70340 a

1and no later than May 31, 2013, except that:
2        (i) a person who becomes a Tier I employee under this
3    Article after January 1, 2013 must make the election under
4    this subsection (a) within 60 days after becoming a Tier I
5    employee;
6        (ii) a person who returns to active service as a Tier I
7    employee under this Article after January 1, 2013 and has
8    not yet made an election under this Section must make the
9    election under this subsection (a) within 60 days after
10    returning to active service as a Tier I employee; and
11        (iii) a person who made the election under subsection
12    (a-5) as a Tier I retiree remains bound by that election
13    and shall not make a later election under this subsection
14    (a).
15    If a Tier I employee fails for any reason to make a
16required election under this subsection within the time
17specified, then the employee shall be deemed to have made the
18election under paragraph (2) of this subsection.
19    (a-5) Each Tier I retiree shall make an irrevocable
20election either:
21        (1) to agree to the following:
22            (i) to have the amount of the automatic annual
23        increases in his or her retirement annuity that are
24        otherwise provided for in this Article calculated,
25        instead, as provided in subsection (a-1) of Section
26        14-114; and

 

 

09700HB1447sam002- 61 -LRB097 05201 JDS 70340 a

1            (ii) to have his or her eligibility for automatic
2        annual increases in retirement annuity postponed as
3        provided in subsection (a-2) of Section 14-114; or
4        (2) to not agree to items (i) and (ii) as set forth in
5    paragraph (1) of this subsection.
6    The election required under this subsection (a-5) shall be
7made by each Tier I retiree no earlier than January 1, 2013 and
8no later than May 31, 2013, except that:
9        (i) a person who becomes a Tier I retiree under this
10    Article on or after January 1, 2013 must make the election
11    under this subsection (a-5) within 60 days after becoming a
12    Tier I retiree; and
13        (ii) a person who made the election under subsection
14    (a) as a Tier I employee remains bound by that election and
15    shall not make a later election under this subsection
16    (a-5).
17    If a Tier I retiree fails for any reason to make a required
18election under this subsection within the time specified, then
19the Tier I retiree shall be deemed to have made the election
20under paragraph (2) of this subsection.
21    (a-10) All elections under subsection (a) or (a-5) that are
22made or deemed to be made before June 1, 2013 shall take effect
23on July 1, 2013. Elections that are made or deemed to be made
24on or after June 1, 2013 shall take effect on the first day of
25the month following the month in which the election is made or
26deemed to be made.

 

 

09700HB1447sam002- 62 -LRB097 05201 JDS 70340 a

1    (b) As adequate and legal consideration provided under this
2amendatory Act of the 97th General Assembly for making the
3election under paragraph (1) of subsection (a) of this Section,
4any future increases in income offered by a department under
5this Article to a Tier I employee who has made the election
6under paragraph (1) of subsection (a) of this Section shall be
7offered expressly and irrevocably as constituting compensation
8under Section 14-103.10. In addition, a Tier I employee who has
9made the election under paragraph (1) of subsection (a) of this
10Section shall receive the right to also participate in the
11optional cash balance plan established under Section 1-162.
12    As adequate and legal consideration provided under this
13amendatory Act of the 97th General Assembly for making the
14election under paragraph (1) of subsection (a-5) of this
15Section, any future increases in income offered by a department
16under this Article to a Tier I retiree who returns to active
17service after having made the election under paragraph (1) of
18subsection (a-5) of this Section shall be offered expressly and
19irrevocably as constituting compensation under Section
2014-103.10. In addition, a Tier I retiree who returns to active
21service and has made the election under paragraph (1) of
22subsection (a) of this Section shall receive the right to also
23participate in the optional cash balance plan established under
24Section 1-162.
25    (c) A Tier I employee who makes the election under
26paragraph (2) of subsection (a) of this Section shall not be

 

 

09700HB1447sam002- 63 -LRB097 05201 JDS 70340 a

1subject to items (i) and (ii) set forth in paragraph (1) of
2subsection (a) of this Section. However, any future increases
3in income offered by a department under this Article to a Tier
4I employee who has made the election under paragraph (2) of
5subsection (a) of this Section shall be offered by the
6department expressly and irrevocably as not constituting
7compensation under Section 14-103.10, and the employee may not
8accept any future increase in income that is offered in
9violation of this requirement. In addition, a Tier I employee
10who has made the election under paragraph (2) of subsection (a)
11of this Section shall not receive the right to participate in
12the optional cash balance plan established under Section 1-162.
13    A Tier I retiree who makes the election under paragraph (2)
14of subsection (a-5) of this Section shall not be subject to
15items (i) and (ii) set forth in paragraph (1) of subsection
16(a-5) of this Section. However, any future increases in income
17offered by a department under this Article to a Tier I retiree
18who returns to active service and has made the election under
19paragraph (2) of subsection (a-5) of this Section shall be
20offered by the department expressly and irrevocably as not
21constituting compensation under Section 14-103.10, and the
22employee may not accept any future increase in income that is
23offered in violation of this requirement. In addition, a Tier I
24retiree who returns to active service and has made the election
25under paragraph (2) of subsection (a) of this Section shall not
26receive the right to participate in the optional cash balance

 

 

09700HB1447sam002- 64 -LRB097 05201 JDS 70340 a

1plan established under Section 1-162.
2    (d) The System shall make a good faith effort to contact
3each Tier I employee and Tier I retiree subject to this
4Section. The System shall mail information describing the
5required election to each Tier I employee and Tier I retiree by
6United States Postal Service mail to his or her last known
7address on file with the System. If the Tier I employee or Tier
8I retiree is not responsive to other means of contact, it is
9sufficient for the System to publish the details of any
10required elections on its website or to publish those details
11in a regularly published newsletter or other existing public
12forum.
13    Tier I employees and Tier I retirees who are subject to
14this Section shall be provided with an election packet
15containing information regarding their options, as well as the
16forms necessary to make the required election. Upon request,
17the System shall offer Tier I employees and Tier I retirees an
18opportunity to receive information from the System before
19making the required election. The information may consist of
20video materials, group presentations, individual consultation
21with a member or authorized representative of the System in
22person or by telephone or other electronic means, or any
23combination of those methods. The System shall not provide
24advice or counseling with respect to which election a Tier I
25employee or Tier I retiree should make or specific to the legal
26or tax circumstances of or consequences to the Tier I employee

 

 

09700HB1447sam002- 65 -LRB097 05201 JDS 70340 a

1or Tier I retiree.
2    The System shall inform Tier I employees and Tier I
3retirees in the election packet required under this subsection
4that the Tier I employee or Tier I retiree may also wish to
5obtain information and counsel relating to the election
6required under this Section from any other available source,
7including but not limited to labor organizations and private
8counsel.
9    In no event shall the System, its staff, or the Board be
10held liable for any information given to a member, beneficiary,
11or annuitant regarding the elections under this Section. The
12System shall coordinate with the Illinois Department of Central
13Management Services and each other retirement system
14administering an election in accordance with this amendatory
15Act of the 97th General Assembly to provide information
16concerning the impact of the election set forth in this
17Section.
18    (e) Notwithstanding any other provision of law, a
19department under this Article is required to offer any future
20increases in income expressly and irrevocably as not
21constituting "compensation" under Section 14-103.10 to any
22Tier I employee, or Tier I retiree returning to active service,
23who has made an election under paragraph (2) of subsection (a)
24or (a-5) of Section 14-106.5. A Tier I employee, or Tier I
25retiree returning to active service, who has made an election
26under paragraph (2) of subsection (a) or (a-5) of Section

 

 

09700HB1447sam002- 66 -LRB097 05201 JDS 70340 a

114-106.5 shall not accept any future increase in income that is
2offered by an employer under this Article in violation of the
3requirement set forth in this subsection.
4    (f) A member's election under this Section is not a
5prohibited election under subdivision (j)(1) of Section 1-119
6of this Code.
7    (g) An employee who has made the election under paragraph
8(1) of subsection (a) or (a-5) of this Section may elect to
9participate in the optional cash balance plan under Section
101-162.
11    The election to participate in the optional cash balance
12plan shall be made in writing, in the manner provided by the
13applicable retirement system.
14    (h) Qualified Plan Status. No provision of this Section
15shall be interpreted in a way that would cause the System to
16cease to be a qualified plan under section 461 (a) of the
17Internal Revenue Code of 1986.
 
18    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
19    Sec. 14-114. Automatic increase in retirement annuity.
20    (a) Subject to the provisions of subsections (a-1) and
21(a-2), any Any person receiving a retirement annuity under this
22Article who retires having attained age 60, or who retires
23before age 60 having at least 35 years of creditable service,
24or who retires on or after January 1, 2001 at an age which,
25when added to the number of years of his or her creditable

 

 

09700HB1447sam002- 67 -LRB097 05201 JDS 70340 a

1service, equals at least 85, shall, on January 1 next following
2the first full year of retirement, have the amount of the then
3fixed and payable monthly retirement annuity increased 3%. Any
4person receiving a retirement annuity under this Article who
5retires before attainment of age 60 and with less than (i) 35
6years of creditable service if retirement is before January 1,
72001, or (ii) the number of years of creditable service which,
8when added to the member's age, would equal 85, if retirement
9is on or after January 1, 2001, shall have the amount of the
10fixed and payable retirement annuity increased by 3% on the
11January 1 occurring on or next following (1) attainment of age
1260, or (2) the first anniversary of retirement, whichever
13occurs later. However, for persons who receive the alternative
14retirement annuity under Section 14-110, references in this
15subsection (a) to attainment of age 60 shall be deemed to refer
16to attainment of age 55. For a person receiving early
17retirement incentives under Section 14-108.3 whose retirement
18annuity began after January 1, 1992 pursuant to an extension
19granted under subsection (e) of that Section, the first
20anniversary of retirement shall be deemed to be January 1,
211993. For a person who retires on or after June 28, 2001 and on
22or before October 1, 2001, and whose retirement annuity is
23calculated, in whole or in part, under Section 14-110 or
24subsection (g) or (h) of Section 14-108, the first anniversary
25of retirement shall be deemed to be January 1, 2002.
26    On each January 1 following the date of the initial

 

 

09700HB1447sam002- 68 -LRB097 05201 JDS 70340 a

1increase under this subsection, the employee's monthly
2retirement annuity shall be increased by an additional 3%.
3    Beginning January 1, 1990 and except as provided in
4subsections (a-1) and (a-2), all automatic annual increases
5payable under this Section shall be calculated as a percentage
6of the total annuity payable at the time of the increase,
7including previous increases granted under this Article.
8    (a-1) Notwithstanding any other provision of this Article,
9for a Tier I employee or Tier I retiree who made the election
10under paragraph (1) of subsection (a) or (a-5) of Section
1114-106.5, the amount of each automatic annual increase in
12retirement annuity occurring on or after the effective date of
13that election shall be 3% or one-half of the annual unadjusted
14percentage increase, if any, in the Consumer Price Index-U for
15the 12 months ending with the preceding September, whichever is
16less, of the originally granted retirement annuity. For the
17purposes of this Section, "Consumer Price Index-U" means the
18index published by the Bureau of Labor Statistics of the United
19States Department of Labor that measures the average change in
20prices of goods and services purchased by all urban consumers,
21United States city average, all items, 1982-84 = 100.
22    (a-2) Notwithstanding any other provision of this Article,
23for a Tier I employee or Tier I retiree who made the election
24under paragraph (1) of subsection (a) or (a-5) of Section
2514-106.5, the monthly retirement annuity shall first be subject
26to annual increases on the January 1 occurring on or next after

 

 

09700HB1447sam002- 69 -LRB097 05201 JDS 70340 a

1either the attainment of age 67 or the January 1 occurring on
2or next after the fifth anniversary of the annuity start date,
3whichever occurs earlier. If on the effective date of the
4election under paragraph (1) of subsection (a-5) of Section
514-106.5 a Tier I retiree has already received an annual
6increase under this Section but does not yet meet the new
7eligibility requirements of this subsection, the annual
8increases already received shall continue in force, but no
9additional annual increase shall be granted until the Tier I
10retiree meets the new eligibility requirements.
11    (b) The provisions of subsection (a) of this Section shall
12be applicable to an employee only if the employee makes the
13additional contributions required after December 31, 1969 for
14the purpose of the automatic increases for not less than the
15equivalent of one full year. If an employee becomes an
16annuitant before his additional contributions equal one full
17year's contributions based on his salary at the date of
18retirement, the employee may pay the necessary balance of the
19contributions to the system, without interest, and be eligible
20for the increasing annuity authorized by this Section.
21    (c) The provisions of subsection (a) of this Section shall
22not be applicable to any annuitant who is on retirement on
23December 31, 1969, and thereafter returns to State service,
24unless the member has established at least one year of
25additional creditable service following reentry into service.
26    (d) In addition to other increases which may be provided by

 

 

09700HB1447sam002- 70 -LRB097 05201 JDS 70340 a

1this Section, on January 1, 1981 any annuitant who was
2receiving a retirement annuity on or before January 1, 1971
3shall have his retirement annuity then being paid increased $1
4per month for each year of creditable service. On January 1,
51982, any annuitant who began receiving a retirement annuity on
6or before January 1, 1977, shall have his retirement annuity
7then being paid increased $1 per month for each year of
8creditable service.
9    On January 1, 1987, any annuitant who began receiving a
10retirement annuity on or before January 1, 1977, shall have the
11monthly retirement annuity increased by an amount equal to 8
12per year of creditable service times the number of years that
13have elapsed since the annuity began.
14    (e) Every person who receives the alternative retirement
15annuity under Section 14-110 and who is eligible to receive the
163% increase under subsection (a) on January 1, 1986, shall also
17receive on that date a one-time increase in retirement annuity
18equal to the difference between (1) his actual retirement
19annuity on that date, including any increases received under
20subsection (a), and (2) the amount of retirement annuity he
21would have received on that date if the amendments to
22subsection (a) made by Public Act 84-162 had been in effect
23since the date of his retirement.
24(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
2592-651, eff. 7-11-02.)
 

 

 

09700HB1447sam002- 71 -LRB097 05201 JDS 70340 a

1    (40 ILCS 5/14-131)
2    Sec. 14-131. Contributions by State.
3    (a) Except as otherwise provided in this Section, the The
4State shall make contributions to the System by appropriations
5of amounts which, together with other employer contributions
6from trust, federal, and other funds, employee contributions,
7investment income, and other income, will be sufficient to meet
8the cost of maintaining and administering the System on a 90%
9funded basis in accordance with actuarial recommendations.
10    For the purposes of this Section and Section 14-135.08,
11references to State contributions refer only to employer
12contributions and do not include employee contributions that
13are picked up or otherwise paid by the State or a department on
14behalf of the employee.
15    (b) The Board shall determine the total amount of State
16contributions required for each fiscal year on the basis of the
17actuarial tables and other assumptions adopted by the Board,
18using the formula in subsection (e).
19    The Board shall also determine a State contribution rate
20for each fiscal year, expressed as a percentage of payroll,
21based on the total required State contribution for that fiscal
22year (less the amount received by the System from
23appropriations under Section 8.12 of the State Finance Act and
24Section 1 of the State Pension Funds Continuing Appropriation
25Act, if any, for the fiscal year ending on the June 30
26immediately preceding the applicable November 15 certification

 

 

09700HB1447sam002- 72 -LRB097 05201 JDS 70340 a

1deadline), the estimated payroll (including all forms of
2compensation) for personal services rendered by eligible
3employees, and the recommendations of the actuary.
4    For the purposes of this Section and Section 14.1 of the
5State Finance Act, the term "eligible employees" includes
6employees who participate in the System, persons who may elect
7to participate in the System but have not so elected, persons
8who are serving a qualifying period that is required for
9participation, and annuitants employed by a department as
10described in subdivision (a)(1) or (a)(2) of Section 14-111.
11    (c) Contributions shall be made by the several departments
12for each pay period by warrants drawn by the State Comptroller
13against their respective funds or appropriations based upon
14vouchers stating the amount to be so contributed. These amounts
15shall be based on the full rate certified by the Board under
16Section 14-135.08 for that fiscal year. From the effective date
17of this amendatory Act of the 93rd General Assembly through the
18payment of the final payroll from fiscal year 2004
19appropriations, the several departments shall not make
20contributions for the remainder of fiscal year 2004 but shall
21instead make payments as required under subsection (a-1) of
22Section 14.1 of the State Finance Act. The several departments
23shall resume those contributions at the commencement of fiscal
24year 2005.
25    (c-1) Notwithstanding subsection (c) of this Section, for
26fiscal years 2010 and 2012 only, contributions by the several

 

 

09700HB1447sam002- 73 -LRB097 05201 JDS 70340 a

1departments are not required to be made for General Revenue
2Funds payrolls processed by the Comptroller. Payrolls paid by
3the several departments from all other State funds must
4continue to be processed pursuant to subsection (c) of this
5Section.
6    (c-2) For State fiscal years 2010 and 2012 only, on or as
7soon as possible after the 15th day of each month, the Board
8shall submit vouchers for payment of State contributions to the
9System, in a total monthly amount of one-twelfth of the fiscal
10year General Revenue Fund contribution as certified by the
11System pursuant to Section 14-135.08 of the Illinois Pension
12Code.
13    (d) If an employee is paid from trust funds or federal
14funds, the department or other employer shall pay employer
15contributions from those funds to the System at the certified
16rate, unless the terms of the trust or the federal-State
17agreement preclude the use of the funds for that purpose, in
18which case the required employer contributions shall be paid by
19the State. From the effective date of this amendatory Act of
20the 93rd General Assembly through the payment of the final
21payroll from fiscal year 2004 appropriations, the department or
22other employer shall not pay contributions for the remainder of
23fiscal year 2004 but shall instead make payments as required
24under subsection (a-1) of Section 14.1 of the State Finance
25Act. The department or other employer shall resume payment of
26contributions at the commencement of fiscal year 2005.

 

 

09700HB1447sam002- 74 -LRB097 05201 JDS 70340 a

1    (e) Except as otherwise provided in this Section, for For
2State fiscal years 2012 through 2045, the minimum contribution
3to the System to be made by the State for each fiscal year
4shall be an amount determined by the System to be sufficient to
5bring the total assets of the System up to 90% of the total
6actuarial liabilities of the System by the end of State fiscal
7year 2045. In making these determinations, the required State
8contribution shall be calculated each year as a level
9percentage of payroll over the years remaining to and including
10fiscal year 2045 and shall be determined under the projected
11unit credit actuarial cost method.
12    For State fiscal years 1996 through 2005, the State
13contribution to the System, as a percentage of the applicable
14employee payroll, shall be increased in equal annual increments
15so that by State fiscal year 2011, the State is contributing at
16the rate required under this Section; except that (i) for State
17fiscal year 1998, for all purposes of this Code and any other
18law of this State, the certified percentage of the applicable
19employee payroll shall be 5.052% for employees earning eligible
20creditable service under Section 14-110 and 6.500% for all
21other employees, notwithstanding any contrary certification
22made under Section 14-135.08 before the effective date of this
23amendatory Act of 1997, and (ii) in the following specified
24State fiscal years, the State contribution to the System shall
25not be less than the following indicated percentages of the
26applicable employee payroll, even if the indicated percentage

 

 

09700HB1447sam002- 75 -LRB097 05201 JDS 70340 a

1will produce a State contribution in excess of the amount
2otherwise required under this subsection and subsection (a):
39.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
42002; 10.6% in FY 2003; and 10.8% in FY 2004.
5    Notwithstanding any other provision of this Article, the
6total required State contribution to the System for State
7fiscal year 2006 is $203,783,900.
8    Notwithstanding any other provision of this Article, the
9total required State contribution to the System for State
10fiscal year 2007 is $344,164,400.
11    For each of State fiscal years 2008 through 2009, the State
12contribution to the System, as a percentage of the applicable
13employee payroll, shall be increased in equal annual increments
14from the required State contribution for State fiscal year
152007, so that by State fiscal year 2011, the State is
16contributing at the rate otherwise required under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State General Revenue Fund contribution for
19State fiscal year 2010 is $723,703,100 and shall be made from
20the proceeds of bonds sold in fiscal year 2010 pursuant to
21Section 7.2 of the General Obligation Bond Act, less (i) the
22pro rata share of bond sale expenses determined by the System's
23share of total bond proceeds, (ii) any amounts received from
24the General Revenue Fund in fiscal year 2010, and (iii) any
25reduction in bond proceeds due to the issuance of discounted
26bonds, if applicable.

 

 

09700HB1447sam002- 76 -LRB097 05201 JDS 70340 a

1    Notwithstanding any other provision of this Article, the
2total required State General Revenue Fund contribution for
3State fiscal year 2011 is the amount recertified by the System
4on or before April 1, 2011 pursuant to Section 14-135.08 and
5shall be made from the proceeds of bonds sold in fiscal year
62011 pursuant to Section 7.2 of the General Obligation Bond
7Act, less (i) the pro rata share of bond sale expenses
8determined by the System's share of total bond proceeds, (ii)
9any amounts received from the General Revenue Fund in fiscal
10year 2011, and (iii) any reduction in bond proceeds due to the
11issuance of discounted bonds, if applicable.
12    Except as otherwise provided in this Section, beginning
13Beginning in State fiscal year 2046, the minimum State
14contribution for each fiscal year shall be the amount needed to
15maintain the total assets of the System at 90% of the total
16actuarial liabilities of the System.
17    Amounts received by the System pursuant to Section 25 of
18the Budget Stabilization Act or Section 8.12 of the State
19Finance Act in any fiscal year do not reduce and do not
20constitute payment of any portion of the minimum State
21contribution required under this Article in that fiscal year.
22Such amounts shall not reduce, and shall not be included in the
23calculation of, the required State contributions under this
24Article in any future year until the System has reached a
25funding ratio of at least 90%. A reference in this Article to
26the "required State contribution" or any substantially similar

 

 

09700HB1447sam002- 77 -LRB097 05201 JDS 70340 a

1term does not include or apply to any amounts payable to the
2System under Section 25 of the Budget Stabilization Act.
3    Notwithstanding any other provision of this Section, the
4required State contribution for State fiscal year 2005 and for
5fiscal year 2008 and each fiscal year thereafter, as calculated
6under this Section and certified under Section 14-135.08, shall
7not exceed an amount equal to (i) the amount of the required
8State contribution that would have been calculated under this
9Section for that fiscal year if the System had not received any
10payments under subsection (d) of Section 7.2 of the General
11Obligation Bond Act, minus (ii) the portion of the State's
12total debt service payments for that fiscal year on the bonds
13issued in fiscal year 2003 for the purposes of that Section
147.2, as determined and certified by the Comptroller, that is
15the same as the System's portion of the total moneys
16distributed under subsection (d) of Section 7.2 of the General
17Obligation Bond Act. In determining this maximum for State
18fiscal years 2008 through 2010, however, the amount referred to
19in item (i) shall be increased, as a percentage of the
20applicable employee payroll, in equal increments calculated
21from the sum of the required State contribution for State
22fiscal year 2007 plus the applicable portion of the State's
23total debt service payments for fiscal year 2007 on the bonds
24issued in fiscal year 2003 for the purposes of Section 7.2 of
25the General Obligation Bond Act, so that, by State fiscal year
262011, the State is contributing at the rate otherwise required

 

 

09700HB1447sam002- 78 -LRB097 05201 JDS 70340 a

1under this Section.
2    (e-1) If at least 50% of Tier I employees making an
3election under Section 14-106.5 before June 1, 2013 choose the
4option under paragraph (1) of subsection (a) of that Section,
5then:
6        (1) In lieu of the State contributions required under
7    subsection (e), for State fiscal years 2014 through 2043
8    the minimum contribution to the System to be made by the
9    State for each fiscal year shall be an amount determined by
10    the System to be equal to the sum of (1) the State's
11    portion of the projected normal cost for that fiscal year,
12    plus (2) an amount sufficient to bring the total assets of
13    the System up to 100% of the total actuarial liabilities of
14    the System by the end of State fiscal year 2043. In making
15    these determinations, the required State contribution
16    shall be calculated each year as a level percentage of
17    payroll over the years remaining to and including fiscal
18    year 2043 and shall be determined under the projected unit
19    credit actuarial cost method.
20        (2) Beginning in State fiscal year 2044, the minimum
21    State contribution for each fiscal year shall be the amount
22    needed to maintain the total assets of the System at 100%
23    of the total actuarial liabilities of the System.
24    (e-2) If less than 50% of Tier I employees making an
25election under Section 14-106.5 before June 1, 2013 choose the
26option under paragraph (1) of subsection (a) of that Section,

 

 

09700HB1447sam002- 79 -LRB097 05201 JDS 70340 a

1then:
2        (1) Instead of the annual required contribution
3    otherwise specified in subsection (e-1) of this Section,
4    the annual required contribution to the System to be made
5    by the State shall be determined under subsection (e) of
6    this Section.
7        (2) As soon as possible after June 1, 2014, the Board
8    shall recertify the annual required contribution by the
9    State for State fiscal year 2015.
10    (f) After the submission of all payments for eligible
11employees from personal services line items in fiscal year 2004
12have been made, the Comptroller shall provide to the System a
13certification of the sum of all fiscal year 2004 expenditures
14for personal services that would have been covered by payments
15to the System under this Section if the provisions of this
16amendatory Act of the 93rd General Assembly had not been
17enacted. Upon receipt of the certification, the System shall
18determine the amount due to the System based on the full rate
19certified by the Board under Section 14-135.08 for fiscal year
202004 in order to meet the State's obligation under this
21Section. The System shall compare this amount due to the amount
22received by the System in fiscal year 2004 through payments
23under this Section and under Section 6z-61 of the State Finance
24Act. If the amount due is more than the amount received, the
25difference shall be termed the "Fiscal Year 2004 Shortfall" for
26purposes of this Section, and the Fiscal Year 2004 Shortfall

 

 

09700HB1447sam002- 80 -LRB097 05201 JDS 70340 a

1shall be satisfied under Section 1.2 of the State Pension Funds
2Continuing Appropriation Act. If the amount due is less than
3the amount received, the difference shall be termed the "Fiscal
4Year 2004 Overpayment" for purposes of this Section, and the
5Fiscal Year 2004 Overpayment shall be repaid by the System to
6the Pension Contribution Fund as soon as practicable after the
7certification.
8    (g) For purposes of determining the required State
9contribution to the System, the value of the System's assets
10shall be equal to the actuarial value of the System's assets,
11which shall be calculated as follows:
12    As of June 30, 2008, the actuarial value of the System's
13assets shall be equal to the market value of the assets as of
14that date. In determining the actuarial value of the System's
15assets for fiscal years after June 30, 2008, any actuarial
16gains or losses from investment return incurred in a fiscal
17year shall be recognized in equal annual amounts over the
185-year period following that fiscal year.
19    (h) For purposes of determining the required State
20contribution to the System for a particular year, the actuarial
21value of assets shall be assumed to earn a rate of return equal
22to the System's actuarially assumed rate of return.
23    (i) After the submission of all payments for eligible
24employees from personal services line items paid from the
25General Revenue Fund in fiscal year 2010 have been made, the
26Comptroller shall provide to the System a certification of the

 

 

09700HB1447sam002- 81 -LRB097 05201 JDS 70340 a

1sum of all fiscal year 2010 expenditures for personal services
2that would have been covered by payments to the System under
3this Section if the provisions of this amendatory Act of the
496th General Assembly had not been enacted. Upon receipt of the
5certification, the System shall determine the amount due to the
6System based on the full rate certified by the Board under
7Section 14-135.08 for fiscal year 2010 in order to meet the
8State's obligation under this Section. The System shall compare
9this amount due to the amount received by the System in fiscal
10year 2010 through payments under this Section. If the amount
11due is more than the amount received, the difference shall be
12termed the "Fiscal Year 2010 Shortfall" for purposes of this
13Section, and the Fiscal Year 2010 Shortfall shall be satisfied
14under Section 1.2 of the State Pension Funds Continuing
15Appropriation Act. If the amount due is less than the amount
16received, the difference shall be termed the "Fiscal Year 2010
17Overpayment" for purposes of this Section, and the Fiscal Year
182010 Overpayment shall be repaid by the System to the General
19Revenue Fund as soon as practicable after the certification.
20    (j) After the submission of all payments for eligible
21employees from personal services line items paid from the
22General Revenue Fund in fiscal year 2011 have been made, the
23Comptroller shall provide to the System a certification of the
24sum of all fiscal year 2011 expenditures for personal services
25that would have been covered by payments to the System under
26this Section if the provisions of this amendatory Act of the

 

 

09700HB1447sam002- 82 -LRB097 05201 JDS 70340 a

196th General Assembly had not been enacted. Upon receipt of the
2certification, the System shall determine the amount due to the
3System based on the full rate certified by the Board under
4Section 14-135.08 for fiscal year 2011 in order to meet the
5State's obligation under this Section. The System shall compare
6this amount due to the amount received by the System in fiscal
7year 2011 through payments under this Section. If the amount
8due is more than the amount received, the difference shall be
9termed the "Fiscal Year 2011 Shortfall" for purposes of this
10Section, and the Fiscal Year 2011 Shortfall shall be satisfied
11under Section 1.2 of the State Pension Funds Continuing
12Appropriation Act. If the amount due is less than the amount
13received, the difference shall be termed the "Fiscal Year 2011
14Overpayment" for purposes of this Section, and the Fiscal Year
152011 Overpayment shall be repaid by the System to the General
16Revenue Fund as soon as practicable after the certification.
17    (k) For fiscal year 2012 only, after the submission of all
18payments for eligible employees from personal services line
19items paid from the General Revenue Fund in the fiscal year
20have been made, the Comptroller shall provide to the System a
21certification of the sum of all expenditures in the fiscal year
22for personal services. Upon receipt of the certification, the
23System shall determine the amount due to the System based on
24the full rate certified by the Board under Section 14-135.08
25for the fiscal year in order to meet the State's obligation
26under this Section. The System shall compare this amount due to

 

 

09700HB1447sam002- 83 -LRB097 05201 JDS 70340 a

1the amount received by the System for the fiscal year. If the
2amount due is more than the amount received, the difference
3shall be termed the "Fiscal Year Shortfall" for purposes of
4this Section, and the Fiscal Year Shortfall shall be satisfied
5under Section 1.2 of the State Pension Funds Continuing
6Appropriation Act. If the amount due is less than the amount
7received, the difference shall be termed the "Fiscal Year
8Overpayment" for purposes of this Section, and the Fiscal Year
9Overpayment shall be repaid by the System to the General
10Revenue Fund as soon as practicable after the certification.
11(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
1296-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
131-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11.)
 
14    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
15    Sec. 14-132. Obligations of State.
16    (a) The payment of the required department contributions,
17all allowances, annuities, benefits granted under this
18Article, and all expenses of administration of the system are
19obligations of the State of Illinois to the extent specified in
20this Article.
21    (b) All income of the system shall be credited to a
22separate account for this system in the State treasury and
23shall be used to pay allowances, annuities, benefits and
24administration expense.
25    (c) If the System submits a voucher for monthly

 

 

09700HB1447sam002- 84 -LRB097 05201 JDS 70340 a

1contributions as required in Section 14-131 and the State fails
2to pay within 90 days of receipt of such a voucher, the Board
3shall submit a written request to the Comptroller seeking
4payment. A copy of the request shall be filed with the
5Secretary of State, and the Secretary of State shall provide
6copies to the Governor and General Assembly. No earlier than
7the 16th day after filing a request with the Secretary of
8State, the Board shall have the right to commence a mandamus
9action in the Supreme Court of Illinois to compel the
10Comptroller to satisfy the voucher by making payment from the
11General Revenue Fund. This Section constitutes an express
12waiver of the State's sovereign immunity solely to the extent
13it permits the Board to commence a mandamus action in the
14Illinois Supreme Court to compel the Comptroller to pay a
15voucher for monthly contributions as required in Section
1614-131.
17(Source: P.A. 80-841.)
 
18    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
19    Sec. 14-133. Contributions on behalf of members.
20    (a) Each participating employee shall make contributions
21to the System, based on the employee's compensation, as
22follows:
23        (1) Covered employees, except as indicated below, 3.5%
24    for retirement annuity, and 0.5% for a widow or survivors
25    annuity;

 

 

09700HB1447sam002- 85 -LRB097 05201 JDS 70340 a

1        (2) Noncovered employees, except as indicated below,
2    7% for retirement annuity and 1% for a widow or survivors
3    annuity;
4        (3) Noncovered employees serving in a position in which
5    "eligible creditable service" as defined in Section 14-110
6    may be earned, 1% for a widow or survivors annuity plus the
7    following amount for retirement annuity: 8.5% through
8    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
9    in 2004 and thereafter;
10        (4) Covered employees serving in a position in which
11    "eligible creditable service" as defined in Section 14-110
12    may be earned, 0.5% for a widow or survivors annuity plus
13    the following amount for retirement annuity: 5% through
14    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
15    and thereafter;
16        (5) Each security employee of the Department of
17    Corrections or of the Department of Human Services who is a
18    covered employee, 0.5% for a widow or survivors annuity
19    plus the following amount for retirement annuity: 5%
20    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
21    in 2004 and thereafter;
22        (6) Each security employee of the Department of
23    Corrections or of the Department of Human Services who is
24    not a covered employee, 1% for a widow or survivors annuity
25    plus the following amount for retirement annuity: 8.5%
26    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and

 

 

09700HB1447sam002- 86 -LRB097 05201 JDS 70340 a

1    11.5% in 2004 and thereafter.
2    (a-1) In addition to the contributions required under
3subsection (a), an employee who elects to participate in the
4optional cash balance plan under Section 1-162 shall pay to the
5System for the purpose of participating in the optional cash
6balance plan an additional contribution of 2% of each payment
7of compensation received while he or she is a participant in
8the optional cash balance plan. These contributions shall not
9be used for the purpose of determining any benefit under this
10Article except as provided in the optional cash balance plan.
11    (b) Contributions shall be in the form of a deduction from
12compensation and shall be made notwithstanding that the
13compensation paid in cash to the employee shall be reduced
14thereby below the minimum prescribed by law or regulation. Each
15member is deemed to consent and agree to the deductions from
16compensation provided for in this Article, and shall receipt in
17full for salary or compensation.
18(Source: P.A. 92-14, eff. 6-28-01.)
 
19    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
20    Sec. 14-135.08. To certify required State contributions.
21    (a) To certify to the Governor and to each department, on
22or before November 15 of each year until November 15, 2011, the
23required rate for State contributions to the System for the
24next State fiscal year, as determined under subsection (b) of
25Section 14-131. The certification to the Governor under this

 

 

09700HB1447sam002- 87 -LRB097 05201 JDS 70340 a

1subsection (a) shall include a copy of the actuarial
2recommendations upon which the rate is based and shall
3specifically identify the System's projected State normal cost
4for that fiscal year.
5    (a-5) On or before November 1 of each year, beginning
6November 1, 2012, the Board shall submit to the State Actuary,
7the Governor, and the General Assembly a proposed certification
8of the amount of the required State contribution to the System
9for the next fiscal year, along with all of the actuarial
10assumptions, calculations, and data upon which that proposed
11certification is based. On or before January 1 of each year
12beginning January 1, 2013, the State Actuary shall issue a
13preliminary report concerning the proposed certification and
14identifying, if necessary, recommended changes in actuarial
15assumptions that the Board must consider before finalizing its
16certification of the required State contributions. On or before
17January 15, 2013 and each January 15 thereafter, the Board
18shall certify to the Governor and the General Assembly the
19amount of the required State contribution for the next fiscal
20year. The Board's certification must note any deviations from
21the State Actuary's recommended changes, the reason or reasons
22for not following the State Actuary's recommended changes, and
23the fiscal impact of not following the State Actuary's
24recommended changes on the required State contribution.
25    (b) The certifications under subsections (a) and (a-5)
26certification shall include an additional amount necessary to

 

 

09700HB1447sam002- 88 -LRB097 05201 JDS 70340 a

1pay all principal of and interest on those general obligation
2bonds due the next fiscal year authorized by Section 7.2(a) of
3the General Obligation Bond Act and issued to provide the
4proceeds deposited by the State with the System in July 2003,
5representing deposits other than amounts reserved under
6Section 7.2(c) of the General Obligation Bond Act. For State
7fiscal year 2005, the Board shall make a supplemental
8certification of the additional amount necessary to pay all
9principal of and interest on those general obligation bonds due
10in State fiscal years 2004 and 2005 authorized by Section
117.2(a) of the General Obligation Bond Act and issued to provide
12the proceeds deposited by the State with the System in July
132003, representing deposits other than amounts reserved under
14Section 7.2(c) of the General Obligation Bond Act, as soon as
15practical after the effective date of this amendatory Act of
16the 93rd General Assembly.
17    On or before May 1, 2004, the Board shall recalculate and
18recertify to the Governor and to each department the amount of
19the required State contribution to the System and the required
20rates for State contributions to the System for State fiscal
21year 2005, taking into account the amounts appropriated to and
22received by the System under subsection (d) of Section 7.2 of
23the General Obligation Bond Act.
24    On or before July 1, 2005, the Board shall recalculate and
25recertify to the Governor and to each department the amount of
26the required State contribution to the System and the required

 

 

09700HB1447sam002- 89 -LRB097 05201 JDS 70340 a

1rates for State contributions to the System for State fiscal
2year 2006, taking into account the changes in required State
3contributions made by this amendatory Act of the 94th General
4Assembly.
5    On or before April 1, 2011, the Board shall recalculate and
6recertify to the Governor and to each department the amount of
7the required State contribution to the System for State fiscal
8year 2011, applying the changes made by Public Act 96-889 to
9the System's assets and liabilities as of June 30, 2009 as
10though Public Act 96-889 was approved on that date.
11(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
12    (40 ILCS 5/14-152.1)
13    Sec. 14-152.1. Application and expiration of new benefit
14increases.
15    (a) As used in this Section, "new benefit increase" means
16an increase in the amount of any benefit provided under this
17Article, or an expansion of the conditions of eligibility for
18any benefit under this Article, that results from an amendment
19to this Code that takes effect after June 1, 2005 (the
20effective date of Public Act 94-4). "New benefit increase",
21however, does not include any benefit increase resulting from
22the changes made to this Article or Article 1 by Public Act
2396-37 or this amendatory Act of the 97th 96th General Assembly.
24    (b) Notwithstanding any other provision of this Code or any
25subsequent amendment to this Code, every new benefit increase

 

 

09700HB1447sam002- 90 -LRB097 05201 JDS 70340 a

1is subject to this Section and shall be deemed to be granted
2only in conformance with and contingent upon compliance with
3the provisions of this Section.
4    (c) The Public Act enacting a new benefit increase must
5identify and provide for payment to the System of additional
6funding at least sufficient to fund the resulting annual
7increase in cost to the System as it accrues.
8    Every new benefit increase is contingent upon the General
9Assembly providing the additional funding required under this
10subsection. The Commission on Government Forecasting and
11Accountability shall analyze whether adequate additional
12funding has been provided for the new benefit increase and
13shall report its analysis to the Public Pension Division of the
14Department of Financial and Professional Regulation. A new
15benefit increase created by a Public Act that does not include
16the additional funding required under this subsection is null
17and void. If the Public Pension Division determines that the
18additional funding provided for a new benefit increase under
19this subsection is or has become inadequate, it may so certify
20to the Governor and the State Comptroller and, in the absence
21of corrective action by the General Assembly, the new benefit
22increase shall expire at the end of the fiscal year in which
23the certification is made.
24    (d) Every new benefit increase shall expire 5 years after
25its effective date or on such earlier date as may be specified
26in the language enacting the new benefit increase or provided

 

 

09700HB1447sam002- 91 -LRB097 05201 JDS 70340 a

1under subsection (c). This does not prevent the General
2Assembly from extending or re-creating a new benefit increase
3by law.
4    (e) Except as otherwise provided in the language creating
5the new benefit increase, a new benefit increase that expires
6under this Section continues to apply to persons who applied
7and qualified for the affected benefit while the new benefit
8increase was in effect and to the affected beneficiaries and
9alternate payees of such persons, but does not apply to any
10other person, including without limitation a person who
11continues in service after the expiration date and did not
12apply and qualify for the affected benefit while the new
13benefit increase was in effect.
14(Source: P.A. 96-37, eff. 7-13-09.)
 
15    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
16    Sec. 16-158. Contributions by State and other employing
17units.
18    (a) The State shall make contributions to the System by
19means of appropriations from the Common School Fund and other
20State funds of amounts which, together with other employer
21contributions, employee contributions, investment income, and
22other income, will be sufficient to meet the cost of
23maintaining and administering the System on a 90% funded basis
24in accordance with actuarial recommendations.
25    The Board shall determine the amount of State contributions

 

 

09700HB1447sam002- 92 -LRB097 05201 JDS 70340 a

1required for each fiscal year on the basis of the actuarial
2tables and other assumptions adopted by the Board and the
3recommendations of the actuary, using the formula in subsection
4(b-3).
5    (a-1) Annually, on or before November 15 until November 15,
62011, the Board shall certify to the Governor the amount of the
7required State contribution for the coming fiscal year. The
8certification under this subsection (a-1) shall include a copy
9of the actuarial recommendations upon which it is based.
10    On or before May 1, 2004, the Board shall recalculate and
11recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2005, taking
13into account the amounts appropriated to and received by the
14System under subsection (d) of Section 7.2 of the General
15Obligation Bond Act.
16    On or before July 1, 2005 April 1, 2011, the Board shall
17recalculate and recertify to the Governor the amount of the
18required State contribution to the System for State fiscal year
192006, taking into account the changes in required State
20contributions made by this amendatory Act of the 94th General
21Assembly.
22    On or before April 1, 2011 June 15, 2010, the Board shall
23recalculate and recertify to the Governor the amount of the
24required State contribution to the System for State fiscal year
252011, applying the changes made by Public Act 96-889 to the
26System's assets and liabilities as of June 30, 2009 as though

 

 

09700HB1447sam002- 93 -LRB097 05201 JDS 70340 a

1Public Act 96-889 was approved on that date.
2    (a-5) On or before November 1 of each year, beginning
3November 1, 2012, the Board shall submit to the State Actuary,
4the Governor, and the General Assembly a proposed certification
5of the amount of the required State contribution to the System
6for the next fiscal year, along with all of the actuarial
7assumptions, calculations, and data upon which that proposed
8certification is based. On or before January 1 of each year,
9beginning January 1, 2013, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification of the required State contributions. On or before
14January 15, 2013 and each January 15 thereafter, the Board
15shall certify to the Governor and the General Assembly the
16amount of the required State contribution for the next fiscal
17year. The Board's certification must note any deviations from
18the State Actuary's recommended changes, the reason or reasons
19for not following the State Actuary's recommended changes, and
20the fiscal impact of not following the State Actuary's
21recommended changes on the required State contribution.
22    (b) Through State fiscal year 1995, the State contributions
23shall be paid to the System in accordance with Section 18-7 of
24the School Code.
25    (b-1) Beginning in State fiscal year 1996, on the 15th day
26of each month, or as soon thereafter as may be practicable, the

 

 

09700HB1447sam002- 94 -LRB097 05201 JDS 70340 a

1Board shall submit vouchers for payment of State contributions
2to the System, in a total monthly amount of one-twelfth of the
3required annual State contribution certified under subsection
4(a-1). From the effective date of this amendatory Act of the
593rd General Assembly through June 30, 2004, the Board shall
6not submit vouchers for the remainder of fiscal year 2004 in
7excess of the fiscal year 2004 certified contribution amount
8determined under this Section after taking into consideration
9the transfer to the System under subsection (a) of Section
106z-61 of the State Finance Act. These vouchers shall be paid by
11the State Comptroller and Treasurer by warrants drawn on the
12funds appropriated to the System for that fiscal year.
13    If in any month the amount remaining unexpended from all
14other appropriations to the System for the applicable fiscal
15year (including the appropriations to the System under Section
168.12 of the State Finance Act and Section 1 of the State
17Pension Funds Continuing Appropriation Act) is less than the
18amount lawfully vouchered under this subsection, the
19difference shall be paid from the Common School Fund under the
20continuing appropriation authority provided in Section 1.1 of
21the State Pension Funds Continuing Appropriation Act.
22    (b-2) Allocations from the Common School Fund apportioned
23to school districts not coming under this System shall not be
24diminished or affected by the provisions of this Article.
25    (b-3) For State fiscal years 2012 through 2045, the minimum
26contribution to the System to be made by the State for each

 

 

09700HB1447sam002- 95 -LRB097 05201 JDS 70340 a

1fiscal year shall be an amount determined by the System to be
2sufficient to bring the total assets of the System up to 90% of
3the total actuarial liabilities of the System by the end of
4State fiscal year 2045. In making these determinations, the
5required State contribution shall be calculated each year as a
6level percentage of payroll over the years remaining to and
7including fiscal year 2045 and shall be determined under the
8projected unit credit actuarial cost method.
9    For State fiscal years 1996 through 2005, the State
10contribution to the System, as a percentage of the applicable
11employee payroll, shall be increased in equal annual increments
12so that by State fiscal year 2011, the State is contributing at
13the rate required under this Section; except that in the
14following specified State fiscal years, the State contribution
15to the System shall not be less than the following indicated
16percentages of the applicable employee payroll, even if the
17indicated percentage will produce a State contribution in
18excess of the amount otherwise required under this subsection
19and subsection (a), and notwithstanding any contrary
20certification made under subsection (a-1) before the effective
21date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
22in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
232003; and 13.56% in FY 2004.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2006 is
26$534,627,700.

 

 

09700HB1447sam002- 96 -LRB097 05201 JDS 70340 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2007 is
3$738,014,500.
4    For each of State fiscal years 2008 through 2009, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7from the required State contribution for State fiscal year
82007, so that by State fiscal year 2011, the State is
9contributing at the rate otherwise required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2010 is
12$2,089,268,000 and shall be made from the proceeds of bonds
13sold in fiscal year 2010 pursuant to Section 7.2 of the General
14Obligation Bond Act, less (i) the pro rata share of bond sale
15expenses determined by the System's share of total bond
16proceeds, (ii) any amounts received from the Common School Fund
17in fiscal year 2010, and (iii) any reduction in bond proceeds
18due to the issuance of discounted bonds, if applicable.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2011 is
21the amount recertified by the System on or before April 1, 2011
22pursuant to subsection (a-1) of this Section and shall be made
23from the proceeds of bonds sold in fiscal year 2011 pursuant to
24Section 7.2 of the General Obligation Bond Act, less (i) the
25pro rata share of bond sale expenses determined by the System's
26share of total bond proceeds, (ii) any amounts received from

 

 

09700HB1447sam002- 97 -LRB097 05201 JDS 70340 a

1the Common School Fund in fiscal year 2011, and (iii) any
2reduction in bond proceeds due to the issuance of discounted
3bonds, if applicable. This amount shall include, in addition to
4the amount certified by the System, an amount necessary to meet
5employer contributions required by the State as an employer
6under paragraph (e) of this Section, which may also be used by
7the System for contributions required by paragraph (a) of
8Section 16-127.
9    Beginning in State fiscal year 2046, the minimum State
10contribution for each fiscal year shall be the amount needed to
11maintain the total assets of the System at 90% of the total
12actuarial liabilities of the System.
13    Amounts received by the System pursuant to Section 25 of
14the Budget Stabilization Act or Section 8.12 of the State
15Finance Act in any fiscal year do not reduce and do not
16constitute payment of any portion of the minimum State
17contribution required under this Article in that fiscal year.
18Such amounts shall not reduce, and shall not be included in the
19calculation of, the required State contributions under this
20Article in any future year until the System has reached a
21funding ratio of at least 90%. A reference in this Article to
22the "required State contribution" or any substantially similar
23term does not include or apply to any amounts payable to the
24System under Section 25 of the Budget Stabilization Act.
25    Notwithstanding any other provision of this Section, the
26required State contribution for State fiscal year 2005 and for

 

 

09700HB1447sam002- 98 -LRB097 05201 JDS 70340 a

1fiscal year 2008 and each fiscal year thereafter, as calculated
2under this Section and certified under subsection (a-1), shall
3not exceed an amount equal to (i) the amount of the required
4State contribution that would have been calculated under this
5Section for that fiscal year if the System had not received any
6payments under subsection (d) of Section 7.2 of the General
7Obligation Bond Act, minus (ii) the portion of the State's
8total debt service payments for that fiscal year on the bonds
9issued in fiscal year 2003 for the purposes of that Section
107.2, as determined and certified by the Comptroller, that is
11the same as the System's portion of the total moneys
12distributed under subsection (d) of Section 7.2 of the General
13Obligation Bond Act. In determining this maximum for State
14fiscal years 2008 through 2010, however, the amount referred to
15in item (i) shall be increased, as a percentage of the
16applicable employee payroll, in equal increments calculated
17from the sum of the required State contribution for State
18fiscal year 2007 plus the applicable portion of the State's
19total debt service payments for fiscal year 2007 on the bonds
20issued in fiscal year 2003 for the purposes of Section 7.2 of
21the General Obligation Bond Act, so that, by State fiscal year
222011, the State is contributing at the rate otherwise required
23under this Section.
24    (c) Payment of the required State contributions and of all
25pensions, retirement annuities, death benefits, refunds, and
26other benefits granted under or assumed by this System, and all

 

 

09700HB1447sam002- 99 -LRB097 05201 JDS 70340 a

1expenses in connection with the administration and operation
2thereof, are obligations of the State.
3    If members are paid from special trust or federal funds
4which are administered by the employing unit, whether school
5district or other unit, the employing unit shall pay to the
6System from such funds the full accruing retirement costs based
7upon that service, as determined by the System. Employer
8contributions, based on salary paid to members from federal
9funds, may be forwarded by the distributing agency of the State
10of Illinois to the System prior to allocation, in an amount
11determined in accordance with guidelines established by such
12agency and the System.
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

 

 

09700HB1447sam002- 100 -LRB097 05201 JDS 70340 a

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 this amendatory Act of 1998.
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

 

 

09700HB1447sam002- 101 -LRB097 05201 JDS 70340 a

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 this amendatory Act of 1998 is the
6responsibility of the teacher and not the teacher's employer,
7unless the employer agrees, through collective bargaining or
8otherwise, to make the contribution 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) If the amount of a teacher's salary for any school year
22used to determine final average salary exceeds the member's
23annual full-time salary rate with the same employer for the
24previous school year by more than 6%, the teacher's employer
25shall pay to the System, in addition to all other payments
26required under this Section and in accordance with guidelines

 

 

09700HB1447sam002- 102 -LRB097 05201 JDS 70340 a

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

 

 

09700HB1447sam002- 103 -LRB097 05201 JDS 70340 a

1that the calculation is subject to subsection (g) or (h) of
2this Section, must include an affidavit setting forth and
3attesting to all facts within the employer's knowledge that are
4pertinent to the applicability of that subsection. Upon
5receiving a timely application for recalculation, the System
6shall review the application and, if appropriate, recalculate
7the amount due.
8    The employer contributions required under this subsection
9(f) may be paid in the form of a lump sum within 90 days after
10receipt of the bill. If the employer contributions are not paid
11within 90 days after receipt of the bill, then interest will be
12charged at a rate equal to the System's annual actuarially
13assumed rate of return on investment compounded annually from
14the 91st day after receipt of the bill. Payments must be
15concluded within 3 years after the employer's receipt of the
16bill.
17    (g) This subsection (g) applies only to payments made or
18salary increases given on or after June 1, 2005 but before July
191, 2011. The changes made by Public Act 94-1057 shall not
20require the System to refund any payments received before July
2131, 2006 (the effective date of Public Act 94-1057).
22    When assessing payment for any amount due under subsection
23(f), the System shall exclude salary increases paid to teachers
24under contracts or collective bargaining agreements entered
25into, amended, or renewed before June 1, 2005.
26    When assessing payment for any amount due under subsection

 

 

09700HB1447sam002- 104 -LRB097 05201 JDS 70340 a

1(f), the System shall exclude salary increases paid to a
2teacher at a time when the teacher is 10 or more years from
3retirement eligibility under Section 16-132 or 16-133.2.
4    When assessing payment for any amount due under subsection
5(f), the System shall exclude salary increases resulting from
6overload work, including summer school, when the school
7district 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), the System shall exclude a salary increase resulting from
16a promotion (i) for which the employee is required to hold a
17certificate or supervisory endorsement issued by the State
18Teacher Certification Board that is a different certification
19or supervisory endorsement than is required for the teacher's
20previous position and (ii) to a position that has existed and
21been filled by a member for no less than one complete academic
22year and the salary increase from the promotion is an increase
23that results in an amount no greater than the lesser of the
24average salary paid for other similar positions in the district
25requiring the same certification or the amount stipulated in
26the collective bargaining agreement for a similar position

 

 

09700HB1447sam002- 105 -LRB097 05201 JDS 70340 a

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

 

 

09700HB1447sam002- 106 -LRB097 05201 JDS 70340 a

1        (3) The total amount the System received from each
2    employer as a result of the changes made to this Section by
3    Public Act 94-4.
4        (4) The increase in the required State contribution
5    resulting from the changes made to this Section by Public
6    Act 94-1057.
7    (j) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (k) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
2396-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff.
241-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
 
25    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)

 

 

09700HB1447sam002- 107 -LRB097 05201 JDS 70340 a

1    Sec. 18-140. To certify required State contributions and
2submit vouchers.
3    (a) The Board shall certify to the Governor, on or before
4November 15 of each year until November 15, 2011, the amount of
5the required State contribution to the System for the following
6fiscal year and shall specifically identify the System's
7projected State normal cost for that fiscal year. The
8certification shall include a copy of the actuarial
9recommendations upon which it is based and shall specifically
10identify the System's projected State normal cost for that
11fiscal year.
12    On or before November 1 of each year, beginning November 1,
132012, the Board shall submit to the State Actuary, the
14Governor, and the General Assembly a proposed certification of
15the amount of the required State contribution to the System for
16the next fiscal year, along with all of the actuarial
17assumptions, calculations, and data upon which that proposed
18certification is based. On or before January 1 of each year
19beginning January 1, 2013, the State Actuary shall issue a
20preliminary report concerning the proposed certification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. On or before
24January 15, 2013 and every January 15 thereafter, the Board
25shall certify to the Governor and the General Assembly the
26amount of the required State contribution for the next fiscal

 

 

09700HB1447sam002- 108 -LRB097 05201 JDS 70340 a

1year. The Board's certification must note any deviations from
2the State Actuary's recommended changes, the reason or reasons
3for not following the State Actuary's recommended changes, and
4the fiscal impact of not following the State Actuary's
5recommended changes on the required State contribution.
6    On or before May 1, 2004, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2005, taking
9into account the amounts appropriated to and received by the
10System under subsection (d) of Section 7.2 of the General
11Obligation Bond Act.
12    On or before July 1, 2005, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2006, taking
15into account the changes in required State contributions made
16by this amendatory Act of the 94th General Assembly.
17    On or before April 1, 2011, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2011, applying
20the changes made by Public Act 96-889 to the System's assets
21and liabilities as of June 30, 2009 as though Public Act 96-889
22was approved on that date.
23    (b) Beginning in State fiscal year 1996, on or as soon as
24possible after the 15th day of each month the Board shall
25submit vouchers for payment of State contributions to the
26System, in a total monthly amount of one-twelfth of the

 

 

09700HB1447sam002- 109 -LRB097 05201 JDS 70340 a

1required annual State contribution certified under subsection
2(a). From the effective date of this amendatory Act of the 93rd
3General Assembly through June 30, 2004, the Board shall not
4submit vouchers for the remainder of fiscal year 2004 in excess
5of the fiscal year 2004 certified contribution amount
6determined under this Section after taking into consideration
7the transfer to the System under subsection (c) of Section
86z-61 of the State Finance Act. These vouchers shall be paid by
9the State Comptroller and Treasurer by warrants drawn on the
10funds appropriated to the System for that fiscal year.
11    If in any month the amount remaining unexpended from all
12other appropriations to the System for the applicable fiscal
13year (including the appropriations to the System under Section
148.12 of the State Finance Act and Section 1 of the State
15Pension Funds Continuing Appropriation Act) is less than the
16amount lawfully vouchered under this Section, the difference
17shall be paid from the General Revenue Fund under the
18continuing appropriation authority provided in Section 1.1 of
19the State Pension Funds Continuing Appropriation Act.
20(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
21    Section 35. The School Code is amended by changing Sections
2224-1 and 24-8 as follows:
 
23    (105 ILCS 5/24-1)  (from Ch. 122, par. 24-1)
24    Sec. 24-1. Appointment - Salaries - Payment - School month -

 

 

09700HB1447sam002- 110 -LRB097 05201 JDS 70340 a

1 School term.) School boards shall appoint all teachers,
2determine qualifications of employment and fix the amount of
3their salaries subject to any limitation set forth in this Act
4and subject to any applicable restrictions in Section 14-106.5
5of the Illinois Pension Code. They shall pay the wages of
6teachers monthly, subject, however, to the provisions of
7Section 24-21. The school month shall be the same as the
8calendar month but by resolution the school board may adopt for
9its use a month of 20 days, including holidays. The school term
10shall consist of at least the minimum number of pupil
11attendance days required by Section 10-19, any additional legal
12school holidays, days of teachers' institutes, or equivalent
13professional educational experiences, and one or two days at
14the beginning of the school term when used as a teachers'
15workshop.
16(Source: P.A. 80-249.)
 
17    (105 ILCS 5/24-8)  (from Ch. 122, par. 24-8)
18    Sec. 24-8. Minimum salary. In fixing the salaries of
19teachers, school boards shall pay those who serve on a
20full-time basis not less than a rate for the school year that
21is based upon training completed in a recognized institution of
22higher learning, as follows: for the school year beginning July
231, 1980 and thereafter, less than a bachelor's degree, $9,000;
24120 semester hours or more and a bachelor's degree, $10,000;
25150 semester hours or more and a master's degree, $11,000.

 

 

09700HB1447sam002- 111 -LRB097 05201 JDS 70340 a

1    Based upon previous public school experience in this State
2or any other State, territory, dependency or possession of the
3United States, or in schools operated by or under the auspices
4of the United States, teachers who serve on a full-time basis
5shall have their salaries increased to at least the following
6amounts above the starting salary for a teacher in such
7district in the same classification: with less than a
8bachelor's degree, $750 after 5 years; with 120 semester hours
9or more and a bachelor's degree, $1,000 after 5 years and
10$1,600 after 8 years; with 150 semester hours or more and a
11master's degree, $1,250 after 5 years, $2,000 after 8 years and
12$2,750 after 13 years. However, any salary increase is subject
13to any applicable restrictions in Section 14-106.5 of the
14Illinois Pension Code.
15    For the purpose of this Section a teacher's salary shall
16include any amount paid by the school district on behalf of the
17teacher, as teacher contributions, to the Teachers' Retirement
18System of the State of Illinois.
19    If a school board establishes a schedule for teachers'
20salaries based on education and experience, not inconsistent
21with this Section, all certificated nurses employed by that
22board shall be paid in accordance with the provisions of such
23schedule (subject to any applicable restrictions in Section
2414-106.5 of the Illinois Pension Code).
25    For purposes of this Section, a teacher who submits a
26certificate of completion to the school office prior to the

 

 

09700HB1447sam002- 112 -LRB097 05201 JDS 70340 a

1first day of the school term shall be considered to have the
2degree stated in such certificate.
3(Source: P.A. 83-913.)
 
4    Section 40. The State Universities Civil Service Act is
5amended by changing Section 36d as follows:
 
6    (110 ILCS 70/36d)  (from Ch. 24 1/2, par. 38b3)
7    Sec. 36d. Powers and duties of the Merit Board.
8    The Merit Board shall have the power and duty-
9    (1) To approve a classification plan prepared under its
10direction, assigning to each class positions of substantially
11similar duties. The Merit Board shall have power to delegate to
12its Director the duty of assigning each position in the
13classified service to the appropriate class in the
14classification plan approved by the Merit Board.
15    (2) To prescribe the duties of each class of positions and
16the qualifications required by employment in that class.
17    (3) To prescribe the range of compensation for each class
18or to fix a single rate of compensation for employees in a
19particular class; and to establish other conditions of
20employment which an employer and employee representatives have
21agreed upon as fair and equitable. The Merit Board shall direct
22the payment of the "prevailing rate of wages" in those
23classifications in which, on January 1, 1952, any employer is
24paying such prevailing rate and in such other classes as the

 

 

09700HB1447sam002- 113 -LRB097 05201 JDS 70340 a

1Merit Board may thereafter determine. "Prevailing rate of
2wages" as used herein shall be the wages paid generally in the
3locality in which the work is being performed to employees
4engaged in work of a similar character. Subject to any
5applicable restrictions in Section 14-106.5 of the Illinois
6Pension Code, each Each employer covered by the University
7System shall be authorized to negotiate with representatives of
8employees to determine appropriate ranges or rates of
9compensation or other conditions of employment and may
10recommend to the Merit Board for establishment the rates or
11ranges or other conditions of employment which the employer and
12employee representatives have agreed upon as fair and
13equitable. Any rates or ranges established prior to January 1,
141952, and hereafter, shall not be changed except in accordance
15with the procedures herein provided.
16    (4) To recommend to the institutions and agencies specified
17in Section 36e standards for hours of work, holidays, sick
18leave, overtime compensation and vacation for the purpose of
19improving conditions of employment covered therein and for the
20purpose of insuring conformity with the prevailing rate
21principal.
22    (5) To prescribe standards of examination for each class,
23the examinations to be related to the duties of such class. The
24Merit Board shall have power to delegate to the Director and
25his staff the preparation, conduct and grading of examinations.
26Examinations may be written, oral, by statement of training and

 

 

09700HB1447sam002- 114 -LRB097 05201 JDS 70340 a

1experience, in the form of tests of knowledge, skill, capacity,
2intellect, aptitude; or, by any other method, which in the
3judgment of the Merit Board is reasonable and practical for any
4particular classification. Different examining procedures may
5be determined for the examinations in different
6classifications but all examinations in the same
7classification shall be uniform.
8    (6) To authorize the continuous recruitment of personnel
9and to that end, to delegate to the Director and his staff the
10power and the duty to conduct open and continuous competitive
11examinations for all classifications of employment.
12    (7) To cause to be established from the results of
13examinations registers for each class of positions in the
14classified service of the State Universities Civil Service
15System, of the persons who shall attain the minimum mark fixed
16by the Merit Board for the examination; and such persons shall
17take rank upon the registers as candidates in the order of
18their relative excellence as determined by examination,
19without reference to priority of time of examination.
20    (8) To provide by its rules for promotions in the
21classified service. Vacancies shall be filled by promotion
22whenever practicable. For the purpose of this paragraph, an
23advancement in class shall constitute a promotion.
24    (9) To set a probationary period of employment of no less
25than 6 months and no longer than 12 months for each class of
26positions in the classification plan, the length of the

 

 

09700HB1447sam002- 115 -LRB097 05201 JDS 70340 a

1probationary period for each class to be determined by the
2Director.
3    (10) To provide by its rules for employment at regular
4rates of compensation of physically handicapped persons in
5positions in which the handicap does not prevent the individual
6from furnishing satisfactory service.
7    (11) To make and publish rules, to carry out the purpose of
8the State Universities Civil Service System and for
9examination, appointments, transfers and removals and for
10maintaining and keeping records of the efficiency of officers
11and employees and groups of officers and employees in
12accordance with the provisions of Sections 36b to 36q,
13inclusive, and said Merit Board may from time to time make
14changes in such rules.
15    (12) To appoint a Director and such assistants and other
16clerical and technical help as may be necessary efficiently to
17administer Sections 36b to 36q, inclusive. To authorize the
18Director to appoint an assistant resident at the place of
19employment of each employer specified in Section 36e and this
20assistant may be authorized to give examinations and to certify
21names from the regional registers provided in Section 36k.
22    (13) To submit to the Governor of this state on or before
23November 1 of each year prior to the regular session of the
24General Assembly a report of the University System's business
25and an estimate of the amount of appropriation from state funds
26required for the purpose of administering the University

 

 

09700HB1447sam002- 116 -LRB097 05201 JDS 70340 a

1System.
2(Source: P.A. 82-524.)
 
3    Section 45. The University of Illinois Act is amended by
4adding Section 80 as follows:
 
5    (110 ILCS 305/80 new)
6    Sec. 80. Future increases in income. The University of
7Illinois must not pay, offer, or agree to pay any future
8increase in income, as that term is defined in Section 14-106.5
9of the Illinois Pension Code, to any person in a manner that
10violates any of those Sections.
 
11    Section 50. The Southern Illinois University Management
12Act is amended by adding Section 65 as follows:
 
13    (110 ILCS 520/65 new)
14    Sec. 65. Future increases in income. Southern Illinois
15University must not pay, offer, or agree to pay any future
16increase in income, as that term is defined in Section 14-106.5
17of the Illinois Pension Code, to any person in a manner that
18violates any of those Sections.
 
19    Section 55. The Chicago State University Law is amended by
20adding Section 5-175 as follows:
 

 

 

09700HB1447sam002- 117 -LRB097 05201 JDS 70340 a

1    (110 ILCS 660/5-175 new)
2    Sec. 5-175. Future increases in income. Chicago State
3University must not pay, offer, or agree to pay any future
4increase in income, as that term is defined in Section 14-106.5
5of the Illinois Pension Code, to any person in a manner that
6violates any of those Sections.
 
7    Section 60. The Eastern Illinois University Law is amended
8by adding Section 10-175 as follows:
 
9    (110 ILCS 665/10-175 new)
10    Sec. 10-175. Future increases in income. Eastern Illinois
11University must not pay, offer, or agree to pay any future
12increase in income, as that term is defined in Section 14-106.5
13of the Illinois Pension Code, to any person in a manner that
14violates any of those Sections.
 
15    Section 65. The Governors State University Law is amended
16by adding Section 15-175 as follows:
 
17    (110 ILCS 670/15-175 new)
18    Sec. 15-175. Future increases in income. Governors State
19University must not pay, offer, or agree to pay any future
20increase in income, as that term is defined in Section 14-106.5
21of the Illinois Pension Code, to any person in a manner that
22violates any of those Sections.
 

 

 

09700HB1447sam002- 118 -LRB097 05201 JDS 70340 a

1    Section 70. The Illinois State University Law is amended by
2adding Section 20-180 as follows:
 
3    (110 ILCS 675/20-180 new)
4    Sec. 20-180. Future increases in income. Illinois State
5University must not pay, offer, or agree to pay any future
6increase in income, as that term is defined in Section 14-106.5
7of the Illinois Pension Code, to any person in a manner that
8violates any of those Sections.
 
9    Section 75. The Northeastern Illinois University Law is
10amended by adding Section 25-175 as follows:
 
11    (110 ILCS 680/25-175 new)
12    Sec. 25-175. Future increases in income. Northeastern
13Illinois University must not pay, offer, or agree to pay any
14future increase in income, as that term is defined in Section
1514-106.5 of the Illinois Pension Code, to any person in a
16manner that violates any of those Sections.
 
17    Section 80. The Northern Illinois University Law is amended
18by adding Section 30-185 as follows:
 
19    (110 ILCS 685/30-185 new)
20    Sec. 30-185. Future increases in income. Northern Illinois

 

 

09700HB1447sam002- 119 -LRB097 05201 JDS 70340 a

1University must not pay, offer, or agree to pay any future
2increase in income, as that term is defined in Section 14-106.5
3of the Illinois Pension Code, to any person in a manner that
4violates any of those Sections.
 
5    Section 85. The Western Illinois University Law is amended
6by adding Section 35-180 as follows:
 
7    (110 ILCS 690/35-180 new)
8    Sec. 35-180. Future increases in income. Western Illinois
9University must not pay, offer, or agree to pay any future
10increase in income, as that term is defined in Section 14-106.5
11of the Illinois Pension Code, to any person in a manner that
12violates any of those Sections.
 
13    Section 90. The Public Community College Act is amended by
14changing Sections 3-26 and 3-42 as follows:
 
15    (110 ILCS 805/3-26)  (from Ch. 122, par. 103-26)
16    Sec. 3-26. (a) To make appointments and fix the salaries of
17a chief administrative officer, who shall be the executive
18officer of the board, other administrative personnel, and all
19teachers, but subject to any applicable restrictions in Section
2014-106.5 of the Illinois Pension Code. In making these
21appointments and fixing the salaries, the board may make no
22discrimination on account of sex, race, creed, color or

 

 

09700HB1447sam002- 120 -LRB097 05201 JDS 70340 a

1national origin.
2    (b) Upon the written request of an employee, to withhold
3from the compensation of that employee the membership dues of
4such employee payable to any specified labor organization as
5defined in the Illinois Educational Labor Relations Act. Under
6such arrangement, an amount shall be withheld for each regular
7payroll period which is equal to the prorata share of the
8annual membership dues plus any payments or contributions and
9the board shall pay such withholding to the specified labor
10organization within 10 working days from the time of the
11withholding.
12(Source: P.A. 83-1014.)
 
13    (110 ILCS 805/3-42)  (from Ch. 122, par. 103-42)
14    Sec. 3-42. To employ such personnel as may be needed, to
15establish policies governing their employment and dismissal,
16and to fix the amount of their compensation, subject to any
17applicable restrictions in Section 14-106.5 of the Illinois
18Pension Code. In the employment, establishment of policies and
19fixing of compensation the board may make no discrimination on
20account of sex, race, creed, color or national origin.
21    Residence within any community college district or outside
22any community college district shall not be considered:
23        (a) in determining whether to retain or not retain any
24    employee of a community college employed prior to July 1,
25    1977 or prior to the adoption by the community college

 

 

09700HB1447sam002- 121 -LRB097 05201 JDS 70340 a

1    board of a resolution making residency within the community
2    college district of some or all employees a condition of
3    employment, whichever is later;
4        (b) in assigning, promoting or transferring any
5    employee of a community college to an office or position
6    employed prior to July 1, 1977 or prior to the adoption by
7    the community college board of a resolution making
8    residency within the community college district of some or
9    all employees a condition of employment, whichever is
10    later; or
11        (c) in determining the salary or other compensation of
12    any employee of a community college.
13(Source: P.A. 80-248.)
 
14    Section 95. The Illinois Educational Labor Relations Act is
15amended by changing Sections 4 and 17 as follows:
 
16    (115 ILCS 5/4)  (from Ch. 48, par. 1704)
17    Sec. 4. Employer rights. Employers shall not be required to
18bargain over matters of inherent managerial policy, which shall
19include such areas of discretion or policy as the functions of
20the employer, standards of services, its overall budget, the
21organizational structure and selection of new employees and
22direction of employees. Employers, however, shall be required
23to bargain collectively with regard to policy matters directly
24affecting wages (but subject to any applicable restrictions in

 

 

09700HB1447sam002- 122 -LRB097 05201 JDS 70340 a

1Section 14-106.5 of the Illinois Pension Code), hours and terms
2and conditions of employment as well as the impact thereon upon
3request by employee representatives, but excluding the
4changes, the impact of changes, and the implementation of the
5changes set forth in this amendatory Act of the 97th General
6Assembly. To preserve the rights of employers and exclusive
7representatives which have established collective bargaining
8relationships or negotiated collective bargaining agreements
9prior to the effective date of this Act, employers shall be
10required to bargain collectively with regard to any matter
11concerning wages (but subject to subject to any applicable
12restrictions in Section 14-106.5 of the Illinois Pension Code),
13hours or conditions of employment about which they have
14bargained for and agreed to in a collective bargaining
15agreement prior to the effective date of this Act, but
16excluding the changes, the impact of changes, and the
17implementation of the changes set forth in this amendatory Act
18of the 97th General Assembly.
19(Source: P.A. 83-1014.)
 
20    (115 ILCS 5/17)  (from Ch. 48, par. 1717)
21    Sec. 17. Effect on other laws. In case of any conflict
22between the provisions of this Act and any other law (other
23than Section 14-106.5 of the Illinois Pension Code), executive
24order or administrative regulation, the provisions of this Act
25shall prevail and control. The provisions of this Act are

 

 

09700HB1447sam002- 123 -LRB097 05201 JDS 70340 a

1subject to any applicable restrictions in Section 14-106.5 of
2the Illinois Pension Code, as well as the changes, impact of
3changes, and implementation of changes set forth in this
4amendatory Act of the 97th General Assembly. Nothing in this
5Act shall be construed to replace or diminish the rights of
6employees established by Section 36d of "An Act to create the
7State Universities Civil Service System", approved May 11,
81905, as amended or modified.
9(Source: P.A. 83-1014.)
 
10    Section 100. The State Mandates Act is amended by adding
11Section 8.36 as follows:
 
12    (30 ILCS 805/8.36 new)
13    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
 
17    Section 105. Severability and inseverability. The
18provisions set forth in Sections 5, 15, 20, 25, 35 through 100,
19and 999 of this Act, as well as Sections 2-134, 7-109,
2014-135.08, and 18-140 and subsection (a-5) of Section 16-158 of
21the Illinois Pension Code, as set forth in Section 30 of this
22Act, are severable pursuant to Section 1.31 of the Statute on
23Statutes, and are not mutually dependent upon the provisions

 

 

09700HB1447sam002- 124 -LRB097 05201 JDS 70340 a

1set forth in any other Section of this Act.
2    Section 10 of this Act and the other provisions of Section
330 of this Act are mutually dependent and inseverable. If any
4of those provision is held invalid other than as applied to a
5particular person or circumstance, then all of those provisions
6are invalid.
 
7    Section 999. Effective date. This Act takes effect upon
8becoming law.".