Rep. Barbara Flynn Currie

Filed: 8/17/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3168

2    AMENDMENT NO. ______. Amend Senate Bill 3168, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 10. The State Employees Group Insurance Act of
61971 is amended by adding Section 6.16 as follows:
 
7    (5 ILCS 375/6.16 new)
8    Sec. 6.16. Health benefit election for Tier I employees and
9Tier I retirees.
10    (a) For purposes of this Section:
11    "Eligible Tier I employee" means an individual who makes or
12is deemed to have made an election under paragraph (1) of
13subsection (a) of Section 2-110.3 of the Illinois Pension Code.
14    "Eligible Tier I retiree" means an individual who makes or
15is deemed to have made an election under paragraph (1) of
16subsection (a-5) of Section 2-110.3 of the Illinois Pension

 

 

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1Code.
2    "Program of health benefits" means (i) a health plan, as
3defined in subsection (o) of Section 3 of this Act, that is
4designed and contracted for by the Director under this Act or
5any successor Act or (ii) if administration of that health plan
6is transferred to a trust established by the State or an
7independent Board in order to provide health benefits to a
8class of a persons that includes eligible Tier I retirees, then
9the plan of health benefits provided through that trust.
10    (b) As adequate and legal consideration for making the
11election under paragraph (1) of subsection (a) or (a-5) of
12Section 2-110.3 of the Illinois Pension Code, each eligible
13Tier I employee and each eligible Tier I retiree shall receive
14a vested and enforceable contractual right to participate in a
15program of health benefits while he or she qualifies as an
16annuitant or retired employee. That right also extends to such
17a person's dependents and survivors who are eligible under the
18applicable program of health benefits.
19    (c) Notwithstanding subsection (b), eligible Tier I
20employees and eligible Tier I retirees may be required to make
21contributions toward the cost of coverage under a program of
22health benefits.
23    (d) The vested and enforceable contractual right to a
24program of health benefits is not offered as, and shall not be
25considered, a pension benefit under Article XIII, Section 5 of
26the Illinois Constitution, the Illinois Pension Code, or any

 

 

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1subsequent or successor enactment providing pension benefits.
2    (e) Notwithstanding any other provision of this Act, a Tier
3I employee or Tier I retiree who has made an election under
4paragraph (2) of subsection (a) or (a-5) of Section 2-110.3 of
5the Illinois Pension Code shall not be entitled to participate
6in the program of health benefits as an annuitant, dependent,
7survivor, or retired employee receiving a retirement annuity,
8regardless of any contrary election pursuant to any of those
9Sections under any other retirement system.
10    Notwithstanding any other provision of this Act, a Tier I
11employee who is not entitled to participate in the program of
12health benefits as an annuitant, dependent, survivor, or
13retired employee receiving a retirement annuity, due to an
14election under paragraph (2) of subsection (a) or (a-5) of
15Section 2-110.3 of the Illinois Pension Code shall not be
16required to make contributions toward the program of health
17benefits while he or she is an employee or active contributor.
18However, an active employee may be required to make
19contributions toward health benefits he or she receives during
20active employment.
21    (f) The Department shall coordinate with the General
22Assembly Retirement System to provide information concerning
23the impact of the election of health benefits. Each System
24shall include information prepared by the Department in the
25required election packet. The Department shall make
26information available to Tier I employees and Tier I retirees

 

 

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1through video materials, group presentations, consultation by
2telephone or other electronic means, or any combination of
3these methods.
4    (g) Notwithstanding any other law, a person who first
5becomes a member of the General Assembly, Governor, Lieutenant
6Governor, Secretary of State, Treasurer, Comptroller, Attorney
7General, Clerk or Assistant Clerk of the House of
8Representatives, Secretary or Assistant Secretary of the
9Senate, or any combination thereof, on or after the effective
10date of this amendatory Act of the 97th General Assembly shall
11not be eligible for any benefit under this Act if that benefit
12arose from his or her service in that capacity and if he or she
13is no longer serving in that capacity.
 
14    Section 15. The Governor's Office of Management and Budget
15Act is amended by changing Sections 7 and 8 as follows:
 
16    (20 ILCS 3005/7)  (from Ch. 127, par. 417)
17    Sec. 7. All statements and estimates of expenditures
18submitted to the Office in connection with the preparation of a
19State budget, and any other estimates of expenditures,
20supporting requests for appropriations, shall be formulated
21according to the various functions and activities for which the
22respective department, office or institution of the State
23government (including the elective officers in the executive
24department and including the University of Illinois and the

 

 

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

 

 

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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 25. The State Finance Act is amended by changing
15Section 13 and by adding Sections 24.12 and 24.13 as follows:
 
16    (30 ILCS 105/13)  (from Ch. 127, par. 149)
17    Sec. 13. The objects and purposes for which appropriations
18are made are classified and standardized by items as follows:
19    (1) Personal services;
20    (2) State contribution for employee group insurance;
21    (3) Contractual services;
22    (4) Travel;
23    (5) Commodities;
24    (6) Equipment;

 

 

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1    (7) Permanent improvements;
2    (8) Land;
3    (9) Electronic Data Processing;
4    (10) Operation of automotive equipment;
5    (11) Telecommunications services;
6    (12) Contingencies;
7    (13) Reserve;
8    (14) Interest;
9    (15) Awards and Grants;
10    (16) Debt Retirement;
11    (17) Non-Cost Charges;
12    (18) State retirement contribution for annual normal cost;
13    (19) State retirement contribution for unfunded accrued
14liability;
15    (20) (18) Purchase Contract for Real Estate.
16    When an appropriation is made to an officer, department,
17institution, board, commission or other agency, or to a private
18association or corporation, in one or more of the items above
19specified, such appropriation shall be construed in accordance
20with the definitions and limitations specified in this Act,
21unless the appropriation act otherwise provides.
22    An appropriation for a purpose other than one specified and
23defined in this Act may be made only as an additional, separate
24and distinct item, specifically stating the object and purpose
25thereof.
26(Source: P.A. 84-263; 84-264.)
 

 

 

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1    (30 ILCS 105/24.12 new)
2    Sec. 24.12. "State retirement contribution for annual
3normal cost" defined. The term "State retirement contribution
4for annual normal cost" means the portion of the total required
5State contribution to a retirement system for a fiscal year
6that represents the State's portion of the System's projected
7normal cost for that fiscal year, as determined and certified
8by the board of trustees of the retirement system in
9conformance with the applicable provisions of the Illinois
10Pension Code.
 
11    (30 ILCS 105/24.13 new)
12    Sec. 24.13. "State retirement contribution for unfunded
13accrued liability" defined. The term "State retirement
14contribution for unfunded accrued liability" means the portion
15of the total required State contribution to a retirement system
16for a fiscal year that is not included in the State retirement
17contribution for annual normal cost.
 
18    Section 30. The Illinois Pension Code is amended by
19changing Sections 1-103.3, 2-105, 2-108, 2-119.1, 2-124,
202-134, 7-109, 14-103.10, 14-106, 14-135.08, 15-106, 15-107,
2115-113.2, 15-163, 15-165, 16-106, 16-127, 16-158, and 18-140,
22and by adding Sections 2-105.1, 2-105.2, 2-107.9, and 2-110.3
23as follows:
 

 

 

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1    (40 ILCS 5/1-103.3)
2    Sec. 1-103.3. Application of 1994 amendment; funding
3standard.
4    (a) The provisions of Public Act 88-593 this amendatory Act
5of 1994 that change the method of calculating, certifying, and
6paying the required State contributions to the retirement
7systems established under Articles 2, 14, 15, 16, and 18 shall
8first apply to the State contributions required for State
9fiscal year 1996.
10    (b) (Blank). The General Assembly declares that a funding
11ratio (the ratio of a retirement system's total assets to its
12total actuarial liabilities) of 90% is an appropriate goal for
13State-funded retirement systems in Illinois, and it finds that
14a funding ratio of 90% is now the generally-recognized norm
15throughout the nation for public employee retirement systems
16that are considered to be financially secure and funded in an
17appropriate and responsible manner.
18    (c) Every 5 years, beginning in 1999, the Commission on
19Government Forecasting and Accountability, in consultation
20with the affected retirement systems and the Governor's Office
21of Management and Budget (formerly Bureau of the Budget), shall
22consider and determine whether the funding goals 90% funding
23ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
24continue subsection (b) continues to represent an appropriate
25funding goals goal for State-funded retirement systems in

 

 

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1Illinois, and it shall report its findings and recommendations
2on this subject to the Governor and the General Assembly.
3(Source: P.A. 93-1067, eff. 1-15-05.)
 
4    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)
5    Sec. 2-105. Member. "Member": Members of the General
6Assembly of this State including persons who enter military
7service while a member of the General Assembly and any person
8serving as Governor, Lieutenant Governor, Secretary of State,
9Treasurer, Comptroller, or Attorney General for the period of
10service in such office.
11    Any person who has served for 10 or more years as Clerk or
12Assistant Clerk of the House of Representatives, Secretary or
13Assistant Secretary of the Senate, or any combination thereof,
14may elect to become a member of this system while thenceforth
15engaged in such service by filing a written election with the
16board. Any person so electing shall be deemed an active member
17of the General Assembly for the purpose of validating and
18transferring any service credits earned under any of the funds
19and systems established under Articles 3 through 18 of this
20Code.
21    Notwithstanding any other law to the contrary, a person who
22first becomes a member on or after the effective date of this
23amendatory Act of the 97th General Assembly is not entitled to
24be a member and is not entitled to receive any of the benefits
25granted under this Article.

 

 

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1(Source: P.A. 85-1008.)
 
2    (40 ILCS 5/2-105.1 new)
3    Sec. 2-105.1. Tier I employee. "Tier I employee": A
4participant who first became a participant before January 1,
52011.
 
6    (40 ILCS 5/2-105.2 new)
7    Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a
8former Tier I employee who is receiving a retirement annuity.
 
9    (40 ILCS 5/2-107.9 new)
10    Sec. 2-107.9. Future increase in income. "Future increase
11in income": Any increase in income in any form offered for
12service as a member under this Article after June 30, 2014 that
13would qualify as "salary", as defined under Section 2-108, but
14for the fact that the increase in income was offered to the
15member on the condition that it not qualify as salary and was
16accepted by the member subject to that condition.
 
17    (40 ILCS 5/2-108)  (from Ch. 108 1/2, par. 2-108)
18    Sec. 2-108. Salary. "Salary": (1) For members of the
19General Assembly, the total compensation paid to the member by
20the State for one year of service, including the additional
21amounts, if any, paid to the member as an officer pursuant to
22Section 1 of "An Act in relation to the compensation and

 

 

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1emoluments of the members of the General Assembly", approved
2December 6, 1907, as now or hereafter amended.
3    (2) For the State executive officers specified in Section
42-105, the total compensation paid to the member for one year
5of service.
6    (3) For members of the System who are participants under
7Section 2-117.1, or who are serving as Clerk or Assistant Clerk
8of the House of Representatives or Secretary or Assistant
9Secretary of the Senate, the total compensation paid to the
10member for one year of service, but not to exceed the salary of
11the highest salaried officer of the General Assembly.
12    However, in the event that federal law results in any
13participant receiving imputed income based on the value of
14group term life insurance provided by the State, such imputed
15income shall not be included in salary for the purposes of this
16Article.
17    Notwithstanding any other provision of this Section,
18"salary" does not include any future increase in income that is
19offered for service as a member under this Article pursuant to
20the requirements of subsection (c) of Section 2-110.3 and
21accepted by a Tier I employee, or a Tier I retiree returning to
22active service, who has made an election under paragraph (2) of
23subsection (a) or (a-5) of Section 2-110.3.
24(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
 
25    (40 ILCS 5/2-110.3 new)

 

 

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1    Sec. 2-110.3. Election by Tier I employees and Tier I
2retirees.
3    (a) Each Tier I employee shall make an irrevocable election
4either:
5        (1) to agree to the following:
6            (i) to have the amount of the automatic annual
7        increases in his or her retirement annuity that are
8        otherwise provided for in this Article calculated,
9        instead, as provided in subsection (a-1) of Section
10        2-119.1; and
11            (ii) to have his or her eligibility for automatic
12        annual increases in retirement annuity postponed as
13        provided in subsection (a-2) of Section 2-119.1 and to
14        relinquish the additional increases provided in
15        subsection (b) of Section 2-119.1; or
16        (2) to not agree to items (i) and (ii) as set forth in
17    paragraph (1) of this subsection.
18    The election required under this subsection (a) shall be
19made by each Tier I employee no earlier than January 1, 2014
20and no later than May 31, 2014, except that:
21        (i) a person who becomes a Tier I employee under this
22    Article after January 1, 2014 must make the election under
23    this subsection (a) within 60 days after becoming a Tier I
24    employee;
25        (ii) a person who returns to active service as a Tier I
26    employee under this Article after January 1, 2014 and has

 

 

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1    not yet made an election under this Section must make the
2    election under this subsection (a) within 60 days after
3    returning to active service as a Tier I employee; and
4        (iii) a person who made the election under subsection
5    (a-5) as a Tier I retiree remains bound by that election
6    and shall not make a later election under this subsection
7    (a).
8    If a Tier I employee fails for any reason to make a
9required election under this subsection within the time
10specified, then the employee shall be deemed to have made the
11election under paragraph (2) of this subsection.
12    (a-5) Each Tier I retiree shall make an irrevocable
13election either:
14        (1) to agree to the following:
15            (i) to have the amount of the automatic annual
16        increases in his or her retirement annuity that are
17        otherwise provided for in this Article calculated,
18        instead, as provided in subsection (a-1) of Section
19        2-119.1; and
20            (ii) to have his or her eligibility for automatic
21        annual increases in retirement annuity postponed as
22        provided in subsection (a-2) of Section 2-119.1 and to
23        relinquish the additional increases provided in
24        subsection (b) of Section 2-119.1; or
25        (2) to not agree to items (i) and (ii) as set forth in
26    paragraph (1) of this subsection.

 

 

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1    The election required under this subsection (a-5) shall be
2made by each Tier I retiree no earlier than January 1, 2014 and
3no later than May 31, 2014, except that:
4        (i) a person who becomes a Tier I retiree under this
5    Article on or after January 1, 2014 must make the election
6    under this subsection (a-5) within 60 days after becoming a
7    Tier I retiree; and
8        (ii) a person who made the election under subsection
9    (a) as a Tier I employee remains bound by that election and
10    shall not make a later election under this subsection
11    (a-5).
12    If a Tier I retiree fails for any reason to make a required
13election under this subsection within the time specified, then
14the Tier I retiree shall be deemed to have made the election
15under paragraph (2) of this subsection.
16    (a-10) All elections under subsection (a) or (a-5) that are
17made or deemed to be made before June 1, 2014 shall take effect
18on July 1, 2014. Elections that are made or deemed to be made
19on or after June 1, 2014 shall take effect on the first day of
20the month following the month in which the election is made or
21deemed to be made.
22    (b) As adequate and legal consideration provided under this
23amendatory Act of the 97th General Assembly for making the
24election under paragraph (1) of subsection (a) of this Section,
25any future increases in income offered for service as a member
26under this Article to a Tier I employee who has made the

 

 

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1election under paragraph (1) of subsection (a) of this Section
2shall be offered expressly and irrevocably as constituting
3salary under Section 2-108.
4    As adequate and legal consideration provided under this
5amendatory Act of the 97th General Assembly for making the
6election under paragraph (1) of subsection (a-5) of this
7Section, any future increases in income offered for service as
8a member under this Article to a Tier I retiree who returns to
9active service after having made the election under paragraph
10(1) of subsection (a-5) of this Section shall be offered
11expressly and irrevocably as constituting salary under Section
122-108.
13    (c) A Tier I employee who makes the election under
14paragraph (2) of subsection (a) of this Section shall not be
15subject to items (i) and (ii) set forth in paragraph (1) of
16subsection (a) of this Section. However, any future increases
17in income offered for service as a member under this Article to
18a Tier I employee who has made the election under paragraph (2)
19of subsection (a) of this Section shall be offered expressly
20and irrevocably as not constituting salary under Section 2-108,
21and the member may not accept any future increase in income
22that is offered in violation of this requirement.
23    A Tier I retiree who makes the election under paragraph (2)
24of subsection (a-5) of this Section shall not be subject to
25items (i) and (ii) set forth in paragraph (1) of subsection
26(a-5) of this Section. However, any future increases in income

 

 

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1offered for service as a member under this Article to a Tier I
2retiree who returns to active service and has made the election
3under paragraph (2) of subsection (a-5) of this Section shall
4be offered expressly and irrevocably as not constituting salary
5under Section 2-108, and the member may not accept any future
6increase in income that is offered in violation of this
7requirement.
8    (d) The System shall make a good faith effort to contact
9each Tier I employee and Tier I retiree subject to this
10Section. The System shall mail information describing the
11required election to each Tier I employee and Tier I retiree by
12United States Postal Service mail to his or her last known
13address on file with the System. If the Tier I employee or Tier
14I retiree is not responsive to other means of contact, it is
15sufficient for the System to publish the details of any
16required elections on its website or to publish those details
17in a regularly published newsletter or other existing public
18forum.
19    Tier I employees and Tier I retirees who are subject to
20this Section shall be provided with an election packet
21containing information regarding their options, as well as the
22forms necessary to make the required election. Upon request,
23the System shall offer Tier I employees and Tier I retirees an
24opportunity to receive information from the System before
25making the required election. The information may be provided
26through video materials, group presentations, individual

 

 

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1consultation with a member or authorized representative of the
2System in person or by telephone or other electronic means, or
3any combination of those methods. The System shall not provide
4advice or counseling with respect to which election a Tier I
5employee or Tier I retiree should make or specific to the legal
6or tax circumstances of or consequences to the Tier I employee
7or Tier I retiree.
8    The System shall inform Tier I employees and Tier I
9retirees in the election packet required under this subsection
10that the Tier I employee or Tier I retiree may also wish to
11obtain information and counsel relating to the election
12required under this Section from any other available source,
13including but not limited to labor organizations and private
14counsel.
15    In no event shall the System, its staff, or the Board be
16held liable for any information given to a member, beneficiary,
17or annuitant regarding the elections under this Section. The
18System shall coordinate with the Illinois Department of Central
19Management Services and each other retirement system
20administering an election in accordance with this amendatory
21Act of the 97th General Assembly to provide information
22concerning the impact of the election set forth in this
23Section.
24    (e) Notwithstanding any other provision of law, any future
25increases in income offered for service as a member must be
26offered expressly and irrevocably as not constituting "salary"

 

 

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1under Section 2-108 to any Tier I employee, or Tier I retiree
2returning to active service, who has made an election under
3paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A
4Tier I employee, or Tier I retiree returning to active service,
5who has made an election under paragraph (2) or subsection (a)
6or (a-5) of Section 2-110.3 shall not accept any future
7increase in income that is offered for service as a member
8under this Article in violation of the requirement set forth in
9this subsection.
10    (f) A member's election under this Section is not a
11prohibited election under subdivision (j)(1) of Section 1-119
12of this Code.
13    (g) No provision of this Section shall be interpreted in a
14way that would cause the System to cease to be a qualified plan
15under Section 401 (a) of the Internal Revenue Code of 1986.
 
16    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
17    Sec. 2-119.1. Automatic increase in retirement annuity.
18    (a) Except as provided in subsections (a-1) and (a-2), a A
19participant who retires after June 30, 1967, and who has not
20received an initial increase under this Section before the
21effective date of this amendatory Act of 1991, shall, in
22January or July next following the first anniversary of
23retirement, whichever occurs first, and in the same month of
24each year thereafter, but in no event prior to age 60, have the
25amount of the originally granted retirement annuity increased

 

 

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1as follows: for each year through 1971, 1 1/2%; for each year
2from 1972 through 1979, 2%; and for 1980 and each year
3thereafter, 3%. Annuitants who have received an initial
4increase under this subsection prior to the effective date of
5this amendatory Act of 1991 shall continue to receive their
6annual increases in the same month as the initial increase.
7    (a-1) Notwithstanding any other provision of this Article,
8for a Tier I employee or Tier I retiree who made the election
9under paragraph (1) of subsection (a) or (a-5) of Section
102-110.3, the amount of each automatic annual increase in
11retirement annuity occurring on or after the effective date of
12that election shall be 3% or one-half of the annual unadjusted
13percentage increase, if any, in the Consumer Price Index-U for
14the 12 months ending with the preceding September, whichever is
15less, of the originally granted retirement annuity. For the
16purposes of this Section, "Consumer Price Index-U" means the
17index published by the Bureau of Labor Statistics of the United
18States Department of Labor that measures the average change in
19prices of goods and services purchased by all urban consumers,
20United States city average, all items, 1982-84 = 100.
21    (a-2) For a Tier I employee or Tier I retiree who made the
22election under paragraph (1) of subsection (a) or (a-5) of
23Section 2-110.3, the monthly retirement annuity shall first be
24subject to annual increases on the January 1 occurring on or
25next after the attainment of age 67 or the January 1 occurring
26on or next after the fifth anniversary of the annuity start

 

 

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1date, whichever occurs earlier. If on the effective date of the
2election under paragraph (1) of subsection (a-5) of Section
32-110.3 a Tier I retiree has already received an annual
4increase under this Section but does not yet meet the new
5eligibility requirements of this subsection, the annual
6increases already received shall continue in force, but no
7additional annual increase shall be granted until the Tier I
8retiree meets the new eligibility requirements.
9    (b) Beginning January 1, 1990, for eligible participants
10who remain in service after attaining 20 years of creditable
11service, the 3% increases provided under subsection (a) shall
12begin to accrue on the January 1 next following the date upon
13which the participant (1) attains age 55, or (2) attains 20
14years of creditable service, whichever occurs later, and shall
15continue to accrue while the participant remains in service;
16such increases shall become payable on January 1 or July 1,
17whichever occurs first, next following the first anniversary of
18retirement. For any person who has service credit in the System
19for the entire period from January 15, 1969 through December
2031, 1992, regardless of the date of termination of service, the
21reference to age 55 in clause (1) of this subsection (b) shall
22be deemed to mean age 50.
23    This subsection (b) does not apply to any person who first
24becomes a member of the System after August 8, 2003 (the
25effective date of Public Act 93-494) or (ii) has made the
26election under paragraph (1) of subsection (a) or (a-5) of

 

 

09700SB3168ham003- 22 -LRB097 19119 JDS 71317 a

1Section 2-110.3; except that if on the effective date of the
2election under paragraph (1) of subsection (a-5) of Section
32-110.3 a Tier I retiree has already received a retirement
4annuity based on any annual increases under this subsection,
5those annual increases under this subsection shall continue in
6force this amendatory Act of the 93rd General Assembly.
7    (b-5) Notwithstanding any other provision of this Article,
8a participant who first becomes a participant on or after
9January 1, 2011 (the effective date of Public Act 96-889)
10shall, in January or July next following the first anniversary
11of retirement, whichever occurs first, and in the same month of
12each year thereafter, but in no event prior to age 67, have the
13amount of the retirement annuity then being paid increased by
143% or the annual unadjusted percentage increase in the Consumer
15Price Index for All Urban Consumers as determined by the Public
16Pension Division of the Department of Insurance under
17subsection (a) of Section 2-108.1, whichever is less.
18    (c) The foregoing provisions relating to automatic
19increases are not applicable to a participant who retires
20before having made contributions (at the rate prescribed in
21Section 2-126) for automatic increases for less than the
22equivalent of one full year. However, in order to be eligible
23for the automatic increases, such a participant may make
24arrangements to pay to the system the amount required to bring
25the total contributions for the automatic increase to the
26equivalent of one year's contributions based upon his or her

 

 

09700SB3168ham003- 23 -LRB097 19119 JDS 71317 a

1last salary.
2    (d) A participant who terminated service prior to July 1,
31967, with at least 14 years of service is entitled to an
4increase in retirement annuity beginning January, 1976, and to
5additional increases in January of each year thereafter.
6    The initial increase shall be 1 1/2% of the originally
7granted retirement annuity multiplied by the number of full
8years that the annuitant was in receipt of such annuity prior
9to January 1, 1972, plus 2% of the originally granted
10retirement annuity for each year after that date. The
11subsequent annual increases shall be at the rate of 2% of the
12originally granted retirement annuity for each year through
131979 and at the rate of 3% for 1980 and thereafter.
14    (e) Beginning January 1, 1990, all automatic annual
15increases payable under this Section shall be calculated as a
16percentage of the total annuity payable at the time of the
17increase, including previous increases granted under this
18Article.
19(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
20    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
21    Sec. 2-124. Contributions by State.
22    (a) Except as otherwise provided in this Section, the The
23State shall make contributions to the System by appropriations
24of amounts which, together with the contributions of
25participants, interest earned on investments, and other income

 

 

09700SB3168ham003- 24 -LRB097 19119 JDS 71317 a

1will meet the cost of maintaining and administering the System
2on a 90% funded basis in accordance with actuarial
3recommendations.
4    (b) The Board shall determine the amount of State
5contributions required for each fiscal year on the basis of the
6actuarial tables and other assumptions adopted by the Board and
7the prescribed rate of interest, using the formula in
8subsection (c).
9    (c) Except as otherwise provided in this Section, for For
10State fiscal years 2012 through 2045, the minimum contribution
11to the System to be made by the State for each fiscal year
12shall be an amount determined by the System to be sufficient to
13bring the total assets of the System up to 90% of the total
14actuarial liabilities of the System by the end of State fiscal
15year 2045. In making these determinations, the required State
16contribution shall be calculated each year as a level
17percentage of payroll over the years remaining to and including
18fiscal year 2045 and shall be determined under the projected
19unit credit actuarial cost method.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section.
25    Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2006 is

 

 

09700SB3168ham003- 25 -LRB097 19119 JDS 71317 a

1$4,157,000.
2    Notwithstanding any other provision of this Article, the
3total required State contribution for State fiscal year 2007 is
4$5,220,300.
5    For each of State fiscal years 2008 through 2009, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8from the required State contribution for State fiscal year
92007, so that by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2010 is
13$10,454,000 and shall be made from the proceeds of bonds sold
14in fiscal year 2010 pursuant to Section 7.2 of the General
15Obligation Bond Act, less (i) the pro rata share of bond sale
16expenses determined by the System's share of total bond
17proceeds, (ii) any amounts received from the General Revenue
18Fund in fiscal year 2010, and (iii) any reduction in bond
19proceeds due to the issuance of discounted bonds, if
20applicable.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2011 is
23the amount recertified by the System on or before April 1, 2011
24pursuant to Section 2-134 and shall be made from the proceeds
25of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
26the General Obligation Bond Act, less (i) the pro rata share of

 

 

09700SB3168ham003- 26 -LRB097 19119 JDS 71317 a

1bond sale expenses determined by the System's share of total
2bond proceeds, (ii) any amounts received from the General
3Revenue Fund in fiscal year 2011, and (iii) any reduction in
4bond proceeds due to the issuance of discounted bonds, if
5applicable.
6    Except as otherwise provided in this Section, beginning
7Beginning in State fiscal year 2046, the minimum State
8contribution for each fiscal year shall be the amount needed to
9maintain the total assets of the System at 90% of the total
10actuarial liabilities of the System.
11    Amounts received by the System pursuant to Section 25 of
12the Budget Stabilization Act or Section 8.12 of the State
13Finance Act in any fiscal year do not reduce and do not
14constitute payment of any portion of the minimum State
15contribution required under this Article in that fiscal year.
16Such amounts shall not reduce, and shall not be included in the
17calculation of, the required State contributions under this
18Article in any future year until the System has reached a
19funding ratio of at least 90%. A reference in this Article to
20the "required State contribution" or any substantially similar
21term does not include or apply to any amounts payable to the
22System under Section 25 of the Budget Stabilization Act.
23    Notwithstanding any other provision of this Section, the
24required State contribution for State fiscal year 2005 and for
25fiscal year 2008 and each fiscal year thereafter, as calculated
26under this Section and certified under Section 2-134, shall not

 

 

09700SB3168ham003- 27 -LRB097 19119 JDS 71317 a

1exceed an amount equal to (i) the amount of the required State
2contribution that would have been calculated under this Section
3for that fiscal year if the System had not received any
4payments under subsection (d) of Section 7.2 of the General
5Obligation Bond Act, minus (ii) the portion of the State's
6total debt service payments for that fiscal year on the bonds
7issued in fiscal year 2003 for the purposes of that Section
87.2, as determined and certified by the Comptroller, that is
9the same as the System's portion of the total moneys
10distributed under subsection (d) of Section 7.2 of the General
11Obligation Bond Act. In determining this maximum for State
12fiscal years 2008 through 2010, however, the amount referred to
13in item (i) shall be increased, as a percentage of the
14applicable employee payroll, in equal increments calculated
15from the sum of the required State contribution for State
16fiscal year 2007 plus the applicable portion of the State's
17total debt service payments for fiscal year 2007 on the bonds
18issued in fiscal year 2003 for the purposes of Section 7.2 of
19the General Obligation Bond Act, so that, by State fiscal year
202011, the State is contributing at the rate otherwise required
21under this Section.
22    (c-1) If at least 50% of Tier I employees making an
23election under Section 2-110.3 before June 1, 2014 choose the
24option under paragraph (1) of subsection (a) of that Section,
25then:
26        (1) In lieu of the State contributions required under

 

 

09700SB3168ham003- 28 -LRB097 19119 JDS 71317 a

1    subsection (c), for State fiscal years 2015 through 2044
2    the minimum contribution to the System to be made by the
3    State for each fiscal year shall be an amount determined by
4    the System to be equal to the sum of (1) the State's
5    portion of the projected normal cost for that fiscal year,
6    plus (2) an amount sufficient to bring the total assets of
7    the System up to 100% of the total actuarial liabilities of
8    the System by the end of State fiscal year 2044. In making
9    these determinations, the required State contribution
10    shall be calculated each year as a level percentage of
11    payroll over the years remaining to and including fiscal
12    year 2044 and shall be determined under the projected unit
13    credit actuarial cost method.
14        (2) Beginning in State fiscal year 2044, the minimum
15    State contribution for each fiscal year shall be the amount
16    needed to maintain the total assets of the System at 100%
17    of the total actuarial liabilities of the System.
18    (c-2) If less than 50% of Tier I employees making an
19election under Section 2-110.3 before June 1, 2014 choose the
20option under paragraph (1) of subsection (a) of that Section,
21then the annual required contribution to the System to be made
22by the State shall be determined under subsection (c) of this
23Section, instead of the annual required contribution otherwise
24specified in subsection (c-1) of this Section.
25    (d) For purposes of determining the required State
26contribution to the System, the value of the System's assets

 

 

09700SB3168ham003- 29 -LRB097 19119 JDS 71317 a

1shall be equal to the actuarial value of the System's assets,
2which shall be calculated as follows:
3    As of June 30, 2008, the actuarial value of the System's
4assets shall be equal to the market value of the assets as of
5that date. In determining the actuarial value of the System's
6assets for fiscal years after June 30, 2008, any actuarial
7gains or losses from investment return incurred in a fiscal
8year shall be recognized in equal annual amounts over the
95-year period following that fiscal year.
10    (e) For purposes of determining the required State
11contribution to the system for a particular year, the actuarial
12value of assets shall be assumed to earn a rate of return equal
13to the system's actuarially assumed rate of return.
14(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09;
1596-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff.
163-18-11; revised 4-6-11.)
 
17    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
18    Sec. 2-134. To certify required State contributions and
19submit vouchers.
20    (a) The Board shall certify to the Governor on or before
21December 15 of each year through until December 15, 2011 the
22amount of the required State contribution to the System for the
23next fiscal year and shall specifically identify the System's
24projected State normal cost for that fiscal year. The
25certification shall include a copy of the actuarial

 

 

09700SB3168ham003- 30 -LRB097 19119 JDS 71317 a

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

 

 

09700SB3168ham003- 31 -LRB097 19119 JDS 71317 a

1required State contribution.
2    (a-7) On or before May 1, 2004, the Board shall recalculate
3and recertify to the Governor the amount of the required State
4contribution to the System for State fiscal year 2005, taking
5into account the amounts appropriated to and received by the
6System under subsection (d) of Section 7.2 of the General
7Obligation Bond Act.
8    On or before July 1, 2005, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2006, taking
11into account the changes in required State contributions made
12by this amendatory Act of the 94th General Assembly.
13    On or before April 1, 2011, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2011, applying
16the changes made by Public Act 96-889 to the System's assets
17and liabilities as of June 30, 2009 as though Public Act 96-889
18was approved on that date.
19    (b) Beginning in State fiscal year 1996, on or as soon as
20possible after the 15th day of each month the Board shall
21submit vouchers for payment of State contributions to the
22System, in a total monthly amount of one-twelfth of the
23required annual State contribution certified under subsection
24(a). From the effective date of this amendatory Act of the 93rd
25General Assembly through June 30, 2004, the Board shall not
26submit vouchers for the remainder of fiscal year 2004 in excess

 

 

09700SB3168ham003- 32 -LRB097 19119 JDS 71317 a

1of the fiscal year 2004 certified contribution amount
2determined under this Section after taking into consideration
3the transfer to the System under subsection (d) of Section
46z-61 of the State Finance Act. These vouchers shall be paid by
5the State Comptroller and Treasurer by warrants drawn on the
6funds appropriated to the System for that fiscal year. If in
7any month the amount remaining unexpended from all other
8appropriations to the System for the applicable fiscal year
9(including the appropriations to the System under Section 8.12
10of the State Finance Act and Section 1 of the State Pension
11Funds Continuing Appropriation Act) is less than the amount
12lawfully vouchered under this Section, the difference shall be
13paid from the General Revenue Fund under the continuing
14appropriation authority provided in Section 1.1 of the State
15Pension Funds Continuing Appropriation Act.
16    (c) The full amount of any annual appropriation for the
17System for State fiscal year 1995 shall be transferred and made
18available to the System at the beginning of that fiscal year at
19the request of the Board. Any excess funds remaining at the end
20of any fiscal year from appropriations shall be retained by the
21System as a general reserve to meet the System's accrued
22liabilities.
23(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
2497-694, eff. 6-18-12.)
 
25    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)

 

 

09700SB3168ham003- 33 -LRB097 19119 JDS 71317 a

1    Sec. 7-109. Employee.
2    (1) "Employee" means any person who:
3        (a) 1. Receives earnings as payment for the performance
4        of personal services or official duties out of the
5        general fund of a municipality, or out of any special
6        fund or funds controlled by a municipality, or by an
7        instrumentality thereof, or a participating
8        instrumentality, including, in counties, the fees or
9        earnings of any county fee office; and
10            2. Under the usual common law rules applicable in
11        determining the employer-employee relationship, has
12        the status of an employee with a municipality, or any
13        instrumentality thereof, or a participating
14        instrumentality, including aldermen, county
15        supervisors and other persons (excepting those
16        employed as independent contractors) who are paid
17        compensation, fees, allowances or other emolument for
18        official duties, and, in counties, the several county
19        fee offices.
20        (b) Serves as a township treasurer appointed under the
21    School Code, as heretofore or hereafter amended, and who
22    receives for such services regular compensation as
23    distinguished from per diem compensation, and any regular
24    employee in the office of any township treasurer whether or
25    not his earnings are paid from the income of the permanent
26    township fund or from funds subject to distribution to the

 

 

09700SB3168ham003- 34 -LRB097 19119 JDS 71317 a

1    several school districts and parts of school districts as
2    provided in the School Code, or from both such sources; or
3    is the chief executive officer, chief educational officer,
4    chief fiscal officer, or other employee of a Financial
5    Oversight Panel established pursuant to Article 1H of the
6    School Code, other than a superintendent or certified
7    school business official, except that such person shall not
8    be treated as an employee under this Section if that person
9    has negotiated with the Financial Oversight Panel, in
10    conjunction with the school district, a contractual
11    agreement for exclusion from this Section.
12        (c) Holds an elective office in a municipality,
13    instrumentality thereof or participating instrumentality.
14    (2) "Employee" does not include persons who:
15        (a) Are eligible for inclusion under any of the
16    following laws:
17            1. "An Act in relation to an Illinois State
18        Teachers' Pension and Retirement Fund", approved May
19        27, 1915, as amended;
20            2. Articles 15 and 16 of this Code.
21        However, such persons shall be included as employees to
22    the extent of earnings that are not eligible for inclusion
23    under the foregoing laws for services not of an
24    instructional nature of any kind.
25        However, any member of the armed forces who is employed
26    as a teacher of subjects in the Reserve Officers Training

 

 

09700SB3168ham003- 35 -LRB097 19119 JDS 71317 a

1    Corps of any school and who is not certified under the law
2    governing the certification of teachers shall be included
3    as an employee.
4        (b) Are designated by the governing body of a
5    municipality in which a pension fund is required by law to
6    be established for policemen or firemen, respectively, as
7    performing police or fire protection duties, except that
8    when such persons are the heads of the police or fire
9    department and are not eligible to be included within any
10    such pension fund, they shall be included within this
11    Article; provided, that such persons shall not be excluded
12    to the extent of concurrent service and earnings not
13    designated as being for police or fire protection duties.
14    However, (i) any head of a police department who was a
15    participant under this Article immediately before October
16    1, 1977 and did not elect, under Section 3-109 of this Act,
17    to participate in a police pension fund shall be an
18    "employee", and (ii) any chief of police who elects to
19    participate in this Fund under Section 3-109.1 of this
20    Code, regardless of whether such person continues to be
21    employed as chief of police or is employed in some other
22    rank or capacity within the police department, shall be an
23    employee under this Article for so long as such person is
24    employed to perform police duties by a participating
25    municipality and has not lawfully rescinded that election.
26        (c) After August 26, 2011 (the effective date of Public

 

 

09700SB3168ham003- 36 -LRB097 19119 JDS 71317 a

1    Act 97-609) this amendatory Act of the 97th General
2    Assembly, are contributors to or eligible to contribute to
3    a Taft-Hartley pension plan established on or before June
4    1, 2011 and are employees of a theatre, arena, or
5    convention center that is located in a municipality located
6    in a county with a population greater than 5,000,000, and
7    to which the participating municipality is required to
8    contribute as the person's employer based on earnings from
9    the municipality. Nothing in this paragraph shall affect
10    service credit or creditable service for any period of
11    service prior to August 26, 2011 the effective date of this
12    amendatory Act of the 97th General Assembly, and this
13    paragraph shall not apply to individuals who are
14    participating in the Fund prior to August 26, 2011 the
15    effective date of this amendatory Act of the 97th General
16    Assembly.
17        (d) Become an employee of any of the following
18    participating instrumentalities on or after the effective
19    date of this amendatory Act of the 97th General Assembly:
20    the Illinois Municipal League; the Illinois Association of
21    Park Districts; the Illinois Supervisors, County
22    Commissioners and Superintendents of Highways Association;
23    an association, or not-for-profit corporation, membership
24    in which is authorized under Section 85-15 of the Township
25    Code; the United Counties Council; or the Will County
26    Governmental League.

 

 

09700SB3168ham003- 37 -LRB097 19119 JDS 71317 a

1    (3) All persons, including, without limitation, public
2defenders and probation officers, who receive earnings from
3general or special funds of a county for performance of
4personal services or official duties within the territorial
5limits of the county, are employees of the county (unless
6excluded by subsection (2) of this Section) notwithstanding
7that they may be appointed by and are subject to the direction
8of a person or persons other than a county board or a county
9officer. It is hereby established that an employer-employee
10relationship under the usual common law rules exists between
11such employees and the county paying their salaries by reason
12of the fact that the county boards fix their rates of
13compensation, appropriate funds for payment of their earnings
14and otherwise exercise control over them. This finding and this
15amendatory Act shall apply to all such employees from the date
16of appointment whether such date is prior to or after the
17effective date of this amendatory Act and is intended to
18clarify existing law pertaining to their status as
19participating employees in the Fund.
20(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
21revised 9-28-11.)
 
22    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
23    Sec. 14-103.10. Compensation.
24    (a) For periods of service prior to January 1, 1978, the
25full rate of salary or wages payable to an employee for

 

 

09700SB3168ham003- 38 -LRB097 19119 JDS 71317 a

1personal services performed if he worked the full normal
2working period for his position, subject to the following
3maximum amounts: (1) prior to July 1, 1951, $400 per month or
4$4,800 per year; (2) between July 1, 1951 and June 30, 1957
5inclusive, $625 per month or $7,500 per year; (3) beginning
6July 1, 1957, no limitation.
7    In the case of service of an employee in a position
8involving part-time employment, compensation shall be
9determined according to the employees' earnings record.
10    (b) For periods of service on and after January 1, 1978,
11all remuneration for personal services performed defined as
12"wages" under the Social Security Enabling Act, including that
13part of such remuneration which is in excess of any maximum
14limitation provided in such Act, and including any benefits
15received by an employee under a sick pay plan in effect before
16January 1, 1981, but excluding lump sum salary payments:
17        (1) for vacation,
18        (2) for accumulated unused sick leave,
19        (3) upon discharge or dismissal,
20        (4) for approved holidays.
21    (c) For periods of service on or after December 16, 1978,
22compensation also includes any benefits, other than lump sum
23salary payments made at termination of employment, which an
24employee receives or is eligible to receive under a sick pay
25plan authorized by law.
26    (d) For periods of service after September 30, 1985,

 

 

09700SB3168ham003- 39 -LRB097 19119 JDS 71317 a

1compensation also includes any remuneration for personal
2services not included as "wages" under the Social Security
3Enabling Act, which is deducted for purposes of participation
4in a program established pursuant to Section 125 of the
5Internal Revenue Code or its successor laws.
6    (e) For members for which Section 1-160 applies for periods
7of service on and after January 1, 2011, all remuneration for
8personal services performed defined as "wages" under the Social
9Security Enabling Act, excluding remuneration that is in excess
10of the annual earnings, salary, or wages of a member or
11participant, as provided in subsection (b-5) of Section 1-160,
12but including any benefits received by an employee under a sick
13pay plan in effect before January 1, 1981. Compensation shall
14exclude lump sum salary payments:
15        (1) for vacation;
16        (2) for accumulated unused sick leave;
17        (3) upon discharge or dismissal; and
18        (4) for approved holidays.
19    (f) Notwithstanding the other provisions of this Section,
20for an employee who first becomes a participant on or after the
21effective date of this amendatory Act of the 97th General
22Assembly, "compensation" does not include any payments or
23reimbursements for travel vouchers.
24(Source: P.A. 96-1490, eff. 1-1-11.)
 
25    (40 ILCS 5/14-106)  (from Ch. 108 1/2, par. 14-106)

 

 

09700SB3168ham003- 40 -LRB097 19119 JDS 71317 a

1    Sec. 14-106. Membership service credit.
2    (a) After January 1, 1944, all service of a member since he
3last became a member with respect to which contributions are
4made shall count as membership service; provided, that for
5service on and after July 1, 1950, 12 months of service shall
6constitute a year of membership service, the completion of 15
7days or more of service during any month shall constitute 1
8month of membership service, 8 to 15 days shall constitute 1/2
9month of membership service and less than 8 days shall
10constitute 1/4 month of membership service. The payroll record
11of each department shall constitute conclusive evidence of the
12record of service rendered by a member.
13    (b) For a member who is employed and paid on an
14academic-year basis rather than on a 12-month annual basis,
15employment for a full academic year shall constitute a full
16year of membership service, except that the member shall not
17receive more than one year of membership service credit (plus
18any additional service credit granted for unused sick leave)
19for service during any 12-month period. This subsection (b)
20applies to all such service for which the member has not begun
21to receive a retirement annuity before January 1, 2001.
22    (c) A member who first participated in this System before
23the effective date of this amendatory Act of the 97th General
24Assembly shall be entitled to additional service credit, under
25rules prescribed by the Board, for accumulated unused sick
26leave credited to his account in the last Department on the

 

 

09700SB3168ham003- 41 -LRB097 19119 JDS 71317 a

1date of withdrawal from service or for any period for which he
2would have been eligible to receive benefits under a sick pay
3plan authorized by law, if he had suffered a sickness or
4accident on the date of withdrawal from service. It shall be
5the responsibility of the last Department to certify to the
6Board the length of time salary or benefits would have been
7paid to the member based upon the accumulated unused sick leave
8or the applicable sick pay plan if he had become entitled
9thereto because of sickness on the date that his status as an
10employee terminated. This period of service credit granted
11under this paragraph shall not be considered in determining the
12date the retirement annuity is to begin, or final average
13compensation.
14    Service credit is not available for unused sick leave
15accumulated by a person who first participates in this System
16on or after the effective date of this amendatory Act of the
1797th General Assembly.
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 through until November 15,
232011, the required rate for State contributions to the System
24for the next State fiscal year, as determined under subsection
25(b) of Section 14-131. The certification to the Governor under

 

 

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1this subsection (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.
17    On or before January 15, 2013 and each January 15
18thereafter, the Board shall certify to the Governor and the
19General Assembly the amount of the required State contribution
20for the next fiscal year. The Board's certification shall
21include a copy of the actuarial recommendations upon which it
22is based and shall specifically identify the System's projected
23State normal cost for that fiscal year. The Board's
24certification must note any deviations from the State Actuary's
25recommended changes, the reason or reasons for not following
26the State Actuary's recommended changes, and the fiscal impact

 

 

09700SB3168ham003- 43 -LRB097 19119 JDS 71317 a

1of not following the State Actuary's recommended changes on the
2required State contribution.
3    (b) The certifications under subsections (a) and (a-5)
4shall include an additional amount necessary to pay all
5principal of and interest on those general obligation bonds due
6the next fiscal year authorized by Section 7.2(a) of the
7General Obligation Bond Act and issued to provide the proceeds
8deposited by the State with the System in July 2003,
9representing deposits other than amounts reserved under
10Section 7.2(c) of the General Obligation Bond Act. For State
11fiscal year 2005, the Board shall make a supplemental
12certification of the additional amount necessary to pay all
13principal of and interest on those general obligation bonds due
14in State fiscal years 2004 and 2005 authorized by Section
157.2(a) of the General Obligation Bond Act and issued to provide
16the proceeds deposited by the State with the System in July
172003, representing deposits other than amounts reserved under
18Section 7.2(c) of the General Obligation Bond Act, as soon as
19practical after the effective date of this amendatory Act of
20the 93rd General Assembly.
21    On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor and to each department the amount of
23the required State contribution to the System and the required
24rates for State contributions to the System for State fiscal
25year 2005, taking into account the amounts appropriated to and
26received by the System under subsection (d) of Section 7.2 of

 

 

09700SB3168ham003- 44 -LRB097 19119 JDS 71317 a

1the General Obligation Bond Act.
2    On or before July 1, 2005, the Board shall recalculate and
3recertify to the Governor and to each department the amount of
4the required State contribution to the System and the required
5rates for State contributions to the System for State fiscal
6year 2006, taking into account the changes in required State
7contributions made by this amendatory Act of the 94th General
8Assembly.
9    On or before April 1, 2011, the Board shall recalculate and
10recertify to the Governor and to each department the amount of
11the required State contribution to the System for State fiscal
12year 2011, applying the changes made by Public Act 96-889 to
13the System's assets and liabilities as of June 30, 2009 as
14though Public Act 96-889 was approved on that date.
15(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1697-694, eff. 6-18-12.)
 
17    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
18    Sec. 15-106. Employer. "Employer": The University of
19Illinois, Southern Illinois University, Chicago State
20University, Eastern Illinois University, Governors State
21University, Illinois State University, Northeastern Illinois
22University, Northern Illinois University, Western Illinois
23University, the State Board of Higher Education, the Illinois
24Mathematics and Science Academy, the University Civil Service
25Merit Board, the Board of Trustees of the State Universities

 

 

09700SB3168ham003- 45 -LRB097 19119 JDS 71317 a

1Retirement System, the Illinois Community College Board,
2community college boards, any association of community college
3boards organized under Section 3-55 of the Public Community
4College Act, the Board of Examiners established under the
5Illinois Public Accounting Act, and, only during the period for
6which employer contributions required under Section 15-155 are
7paid, the following organizations: the alumni associations,
8the foundations and the athletic associations which are
9affiliated with the universities and colleges included in this
10Section as employers. An individual that begins employment
11after the effective date of this amendatory Act of the 97th
12General Assembly with an entity not defined as an employer in
13this Section shall not be deemed an employee for the purposes
14of this Article with respect to that employment and shall not
15be eligible to participate in the System with respect to that
16employment; provided, however, that those individuals who are
17both employed and already participants in the System on the
18effective date of this amendatory Act of the 97th General
19Assembly shall be allowed to continue as participants in the
20System for the duration of that employment.
21    Notwithstanding any provision of law to the contrary, an
22individual who begins employment with any of the following
23employers on or after the effective date of this amendatory Act
24of the 97th General Assembly shall not be deemed an employee
25and shall not be eligible to participate in the System with
26respect to that employment: any association of community

 

 

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1college boards organized under Section 3-55 of the Public
2Community College Act, the Association of Illinois
3Middle-Grade Schools, the Illinois Association of School
4Administrators, the Illinois Association for Supervision and
5Curriculum Development, the Illinois Principals Association,
6the Illinois Association of School Business Officials, or the
7Illinois Special Olympics; provided, however, that those
8individuals who are both employed and already participants in
9the System on the effective date of this amendatory Act of the
1097th General Assembly shall be allowed to continue as
11participants in the System for the duration of that employment.
12    A department as defined in Section 14-103.04 is an employer
13for any person appointed by the Governor under the Civil
14Administrative Code of Illinois who is a participating employee
15as defined in Section 15-109. The Department of Central
16Management Services is an employer with respect to persons
17employed by the State Board of Higher Education in positions
18with the Illinois Century Network as of June 30, 2004 who
19remain continuously employed after that date by the Department
20of Central Management Services in positions with the Illinois
21Century Network, the Bureau of Communication and Computer
22Services, or, if applicable, any successor bureau.
23    The cities of Champaign and Urbana shall be considered
24employers, but only during the period for which contributions
25are required to be made under subsection (b-1) of Section
2615-155 and only with respect to individuals described in

 

 

09700SB3168ham003- 47 -LRB097 19119 JDS 71317 a

1subsection (h) of Section 15-107.
2(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
3Sec. 999.)
 
4    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
5    Sec. 15-107. Employee.
6    (a) "Employee" means any member of the educational,
7administrative, secretarial, clerical, mechanical, labor or
8other staff of an employer whose employment is permanent and
9continuous or who is employed in a position in which services
10are expected to be rendered on a continuous basis for at least
114 months or one academic term, whichever is less, who (A)
12receives payment for personal services on a warrant issued
13pursuant to a payroll voucher certified by an employer and
14drawn by the State Comptroller upon the State Treasurer or by
15an employer upon trust, federal or other funds, or (B) is on a
16leave of absence without pay. Employment which is irregular,
17intermittent or temporary shall not be considered continuous
18for purposes of this paragraph.
19    However, a person is not an "employee" if he or she:
20        (1) is a student enrolled in and regularly attending
21    classes in a college or university which is an employer,
22    and is employed on a temporary basis at less than full
23    time;
24        (2) is currently receiving a retirement annuity or a
25    disability retirement annuity under Section 15-153.2 from

 

 

09700SB3168ham003- 48 -LRB097 19119 JDS 71317 a

1    this System;
2        (3) is on a military leave of absence;
3        (4) is eligible to participate in the Federal Civil
4    Service Retirement System and is currently making
5    contributions to that system based upon earnings paid by an
6    employer;
7        (5) is on leave of absence without pay for more than 60
8    days immediately following termination of disability
9    benefits under this Article;
10        (6) is hired after June 30, 1979 as a public service
11    employment program participant under the Federal
12    Comprehensive Employment and Training Act and receives
13    earnings in whole or in part from funds provided under that
14    Act; or
15        (7) is employed on or after July 1, 1991 to perform
16    services that are excluded by subdivision (a)(7)(f) or
17    (a)(19) of Section 210 of the federal Social Security Act
18    from the definition of employment given in that Section (42
19    U.S.C. 410).
20    (b) Any employer may, by filing a written notice with the
21board, exclude from the definition of "employee" all persons
22employed pursuant to a federally funded contract entered into
23after July 1, 1982 with a federal military department in a
24program providing training in military courses to federal
25military personnel on a military site owned by the United
26States Government, if this exclusion is not prohibited by the

 

 

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1federally funded contract or federal laws or rules governing
2the administration of the contract.
3    (c) Any person appointed by the Governor under the Civil
4Administrative Code of the State is an employee, if he or she
5is a participant in this system on the effective date of the
6appointment.
7    (d) A participant on lay-off status under civil service
8rules is considered an employee for not more than 120 days from
9the date of the lay-off.
10    (e) A participant is considered an employee during (1) the
11first 60 days of disability leave, (2) the period, not to
12exceed one year, in which his or her eligibility for disability
13benefits is being considered by the board or reviewed by the
14courts, and (3) the period he or she receives disability
15benefits under the provisions of Section 15-152, workers'
16compensation or occupational disease benefits, or disability
17income under an insurance contract financed wholly or partially
18by the employer.
19    (f) Absences without pay, other than formal leaves of
20absence, of less than 30 calendar days, are not considered as
21an interruption of a person's status as an employee. If such
22absences during any period of 12 months exceed 30 work days,
23the employee status of the person is considered as interrupted
24as of the 31st work day.
25    (g) A staff member whose employment contract requires
26services during an academic term is to be considered an

 

 

09700SB3168ham003- 50 -LRB097 19119 JDS 71317 a

1employee during the summer and other vacation periods, unless
2he or she declines an employment contract for the succeeding
3academic term or his or her employment status is otherwise
4terminated, and he or she receives no earnings during these
5periods.
6    (h) An individual who was a participating employee employed
7in the fire department of the University of Illinois's
8Champaign-Urbana campus immediately prior to the elimination
9of that fire department and who immediately after the
10elimination of that fire department became employed by the fire
11department of the City of Urbana or the City of Champaign shall
12continue to be considered as an employee for purposes of this
13Article for so long as the individual remains employed as a
14firefighter by the City of Urbana or the City of Champaign. The
15individual shall cease to be considered an employee under this
16subsection (h) upon the first termination of the individual's
17employment as a firefighter by the City of Urbana or the City
18of Champaign.
19    (i) An individual who is employed on a full-time basis as
20an officer or employee of a statewide teacher organization that
21serves System participants or an officer of a national teacher
22organization that serves System participants may participate
23in the System and shall be deemed an employee, provided that
24(1) the individual has previously earned creditable service
25under this Article, (2) the individual files with the System an
26irrevocable election to become a participant before the

 

 

09700SB3168ham003- 51 -LRB097 19119 JDS 71317 a

1effective date of this amendatory Act of the 97th General
2Assembly, (3) the individual does not receive credit for that
3employment under any other Article of this Code, and (4) the
4individual first became a full-time employee of the teacher
5organization and becomes a participant before the effective
6date of this amendatory Act of the 97th General Assembly. An
7employee under this subsection (i) is responsible for paying to
8the System both (A) employee contributions based on the actual
9compensation received for service with the teacher
10organization and (B) employer contributions equal to the normal
11costs (as defined in Section 15-155) resulting from that
12service; all or any part of these contributions may be paid on
13the employee's behalf or picked up for tax purposes (if
14authorized under federal law) by the teacher organization.
15    A person who is an employee as defined in this subsection
16(i) may establish service credit for similar employment prior
17to becoming an employee under this subsection by paying to the
18System for that employment the contributions specified in this
19subsection, plus interest at the effective rate from the date
20of service to the date of payment. However, credit shall not be
21granted under this subsection for any such prior employment for
22which the applicant received credit under any other provision
23of this Code, or during which the applicant was on a leave of
24absence under Section 15-113.2.
25    (j) A person employed by the State Board of Higher
26Education in a position with the Illinois Century Network as of

 

 

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1June 30, 2004 shall be considered to be an employee for so long
2as he or she remains continuously employed after that date by
3the Department of Central Management Services in a position
4with the Illinois Century Network, the Bureau of Communication
5and Computer Services, or, if applicable, any successor bureau
6and meets the requirements of subsection (a).
7    (k) In the case of doubt as to whether any person is an
8employee within the meaning of this Section, the decision of
9the Board shall be final.
10(Source: P.A. 97-651, eff. 1-5-12.)
 
11    (40 ILCS 5/15-113.2)  (from Ch. 108 1/2, par. 15-113.2)
12    Sec. 15-113.2. Service for leaves of absence. "Service for
13leaves of absence" includes those periods of leaves of absence
14at less than 50% pay, except military leave and periods of
15disability leave in excess of 60 days, for which the employee
16pays the contributions required under Section 15-157 in
17accordance with rules prescribed by the board based upon the
18employee's basic compensation on the date the leave begins, or
19in the case of leave for service with a teacher organization,
20based upon the actual compensation received by the employee for
21such service after January 26, 1988, if the employee so elects
22within 30 days of that date or the date the leave for service
23with a teacher organization begins, whichever is later;
24provided that the employee (1) returns to employment covered by
25this system at the expiration of the leave, or within 30 days

 

 

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1after the termination of a disability which occurs during the
2leave and continues this employment at a percentage of time
3equal to or greater than the percentage of time immediately
4preceding the leave of absence for at least 8 consecutive
5months or a period equal to the period of the leave, whichever
6is less, or (2) is precluded from meeting the foregoing
7conditions because of disability or death. If service credit is
8denied because the employee fails to meet these conditions, the
9contributions covering the leave of absence shall be refunded
10without interest. The return to employment condition does not
11apply if the leave of absence is for service with a teacher
12organization.
13    Service credit provided under this Section shall not exceed
143 years in any period of 10 years, unless the employee is on
15special leave granted by the employer for service with a
16teacher organization. Commencing with the fourth year in any
17period of 10 years, a participant on such special leave is also
18required to pay employer contributions equal to the normal cost
19as defined in Section 15-155, based upon the employee's basic
20compensation on the date the leave begins, or based upon the
21actual compensation received by the employee for service with a
22teacher organization if the employee has so elected.
23    Notwithstanding any other provision of this Article, a
24participant shall not be eligible to make contributions or
25receive service credit for a leave of absence for service with
26a teacher organization if that leave of absence for service

 

 

09700SB3168ham003- 54 -LRB097 19119 JDS 71317 a

1with a teacher organization begins on or after the effective
2date of this amendatory Act of the 97th General Assembly.
3(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
 
4    (40 ILCS 5/15-163)  (from Ch. 108 1/2, par. 15-163)
5    Sec. 15-163. To consider applications and authorize
6payments.
7    To consider and pass on all certifications of employment
8and applications for annuities and benefits; to authorize the
9granting of annuities and benefits; and to limit or suspend any
10payment or payments, all in accordance with this Article.
11(Source: Laws 1963, p. 161.)
 
12    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
13    Sec. 15-165. To certify amounts and submit vouchers.
14    (a) The Board shall certify to the Governor on or before
15November 15 of each year through until November 15, 2011 the
16appropriation required from State funds for the purposes of
17this System for the following fiscal year. The certification
18under this subsection (a) shall include a copy of the actuarial
19recommendations upon which it is based and shall specifically
20identify the System's projected State normal cost for that
21fiscal year and the projected State cost for the self-managed
22plan for that fiscal year.
23    On or before May 1, 2004, the Board shall recalculate and
24recertify to the Governor the amount of the required State

 

 

09700SB3168ham003- 55 -LRB097 19119 JDS 71317 a

1contribution to the System for State fiscal year 2005, taking
2into account the amounts appropriated to and received by the
3System under subsection (d) of Section 7.2 of the General
4Obligation Bond Act.
5    On or before July 1, 2005, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2006, taking
8into account the changes in required State contributions made
9by this amendatory Act of the 94th General Assembly.
10    On or before April 1, 2011, the Board shall recalculate and
11recertify to the Governor the amount of the required State
12contribution to the System for State fiscal year 2011, applying
13the changes made by Public Act 96-889 to the System's assets
14and liabilities as of June 30, 2009 as though Public Act 96-889
15was approved on that date.
16    (a-5) On or before November 1 of each year, beginning
17November 1, 2012, the Board shall submit to the State Actuary,
18the Governor, and the General Assembly a proposed certification
19of the amount of the required State contribution to the System
20for the next fiscal year, along with all of the actuarial
21assumptions, calculations, and data upon which that proposed
22certification is based. On or before January 1 of each year,
23beginning January 1, 2013, the State Actuary shall issue a
24preliminary report concerning the proposed certification and
25identifying, if necessary, recommended changes in actuarial
26assumptions that the Board must consider before finalizing its

 

 

09700SB3168ham003- 56 -LRB097 19119 JDS 71317 a

1certification of the required State contributions.
2    On or before January 15, 2013 and each January 15
3thereafter, the Board shall certify to the Governor and the
4General Assembly the amount of the required State contribution
5for the next fiscal year. The Board's certification shall
6include a copy of the actuarial recommendations upon which it
7is based and shall specifically identify the System's projected
8State normal cost for that fiscal year. The Board's
9certification must note, in a written response to the State
10Actuary, any deviations from the State Actuary's recommended
11changes, the reason or reasons for not following the State
12Actuary's recommended changes, and the fiscal impact of not
13following the State Actuary's recommended changes on the
14required State contribution.
15    (b) The Board shall certify to the State Comptroller or
16employer, as the case may be, from time to time, by its
17president and secretary, with its seal attached, the amounts
18payable to the System from the various funds.
19    (c) Beginning in State fiscal year 1996, on or as soon as
20possible after the 15th day of each month the Board shall
21submit vouchers for payment of State contributions to the
22System, in a total monthly amount of one-twelfth of the
23required annual State contribution certified under subsection
24(a). From the effective date of this amendatory Act of the 93rd
25General Assembly through June 30, 2004, the Board shall not
26submit vouchers for the remainder of fiscal year 2004 in excess

 

 

09700SB3168ham003- 57 -LRB097 19119 JDS 71317 a

1of the fiscal year 2004 certified contribution amount
2determined under this Section after taking into consideration
3the transfer to the System under subsection (b) of Section
46z-61 of the State Finance Act. These vouchers shall be paid by
5the State Comptroller and Treasurer by warrants drawn on the
6funds appropriated to the System for that fiscal year.
7    If in any month the amount remaining unexpended from all
8other appropriations to the System for the applicable fiscal
9year (including the appropriations to the System under Section
108.12 of the State Finance Act and Section 1 of the State
11Pension Funds Continuing Appropriation Act) is less than the
12amount lawfully vouchered under this Section, the difference
13shall be paid from the General Revenue Fund under the
14continuing appropriation authority provided in Section 1.1 of
15the State Pension Funds Continuing Appropriation Act.
16    (d) So long as the payments received are the full amount
17lawfully vouchered under this Section, payments received by the
18System under this Section shall be applied first toward the
19employer contribution to the self-managed plan established
20under Section 15-158.2. Payments shall be applied second toward
21the employer's portion of the normal costs of the System, as
22defined in subsection (f) of Section 15-155. The balance shall
23be applied toward the unfunded actuarial liabilities of the
24System.
25    (e) In the event that the System does not receive, as a
26result of legislative enactment or otherwise, payments

 

 

09700SB3168ham003- 58 -LRB097 19119 JDS 71317 a

1sufficient to fully fund the employer contribution to the
2self-managed plan established under Section 15-158.2 and to
3fully fund that portion of the employer's portion of the normal
4costs of the System, as calculated in accordance with Section
515-155(a-1), then any payments received shall be applied
6proportionately to the optional retirement program established
7under Section 15-158.2 and to the employer's portion of the
8normal costs of the System, as calculated in accordance with
9Section 15-155(a-1).
10(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1197-694, eff. 6-18-12.)
 
12    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
13    Sec. 16-106. Teacher. "Teacher": The following
14individuals, provided that, for employment prior to July 1,
151990, they are employed on a full-time basis, or if not
16full-time, on a permanent and continuous basis in a position in
17which services are expected to be rendered for at least one
18school term:
19        (1) Any educational, administrative, professional or
20    other staff employed in the public common schools included
21    within this system in a position requiring certification
22    under the law governing the certification of teachers;
23        (2) Any educational, administrative, professional or
24    other staff employed in any facility of the Department of
25    Children and Family Services or the Department of Human

 

 

09700SB3168ham003- 59 -LRB097 19119 JDS 71317 a

1    Services, in a position requiring certification under the
2    law governing the certification of teachers, and any person
3    who (i) works in such a position for the Department of
4    Corrections, (ii) was a member of this System on May 31,
5    1987, and (iii) did not elect to become a member of the
6    State Employees' Retirement System pursuant to Section
7    14-108.2 of this Code; except that "teacher" does not
8    include any person who (A) becomes a security employee of
9    the Department of Human Services, as defined in Section
10    14-110, after June 28, 2001 (the effective date of Public
11    Act 92-14), or (B) becomes a member of the State Employees'
12    Retirement System pursuant to Section 14-108.2c of this
13    Code;
14        (3) Any regional superintendent of schools, assistant
15    regional superintendent of schools, State Superintendent
16    of Education; any person employed by the State Board of
17    Education as an executive; any executive of the boards
18    engaged in the service of public common school education in
19    school districts covered under this system of which the
20    State Superintendent of Education is an ex-officio member;
21        (4) Any employee of a school board association
22    operating in compliance with Article 23 of the School Code
23    who is certificated under the law governing the
24    certification of teachers, provided that he or she becomes
25    such an employee before the effective date of this
26    amendatory Act of the 97th General Assembly;

 

 

09700SB3168ham003- 60 -LRB097 19119 JDS 71317 a

1        (5) Any person employed by the retirement system who:
2            (i) was an employee of and a participant in the
3        system on August 17, 2001 (the effective date of Public
4        Act 92-416), or
5            (ii) becomes an employee of the system on or after
6        August 17, 2001;
7        (6) Any educational, administrative, professional or
8    other staff employed by and under the supervision and
9    control of a regional superintendent of schools, provided
10    such employment position requires the person to be
11    certificated under the law governing the certification of
12    teachers and is in an educational program serving 2 or more
13    districts in accordance with a joint agreement authorized
14    by the School Code or by federal legislation;
15        (7) Any educational, administrative, professional or
16    other staff employed in an educational program serving 2 or
17    more school districts in accordance with a joint agreement
18    authorized by the School Code or by federal legislation and
19    in a position requiring certification under the laws
20    governing the certification of teachers;
21        (8) Any officer or employee of a statewide teacher
22    organization or officer of a national teacher organization
23    who is certified under the law governing certification of
24    teachers, provided: (i) the individual had previously
25    established creditable service under this Article, (ii)
26    the individual files with the system an irrevocable

 

 

09700SB3168ham003- 61 -LRB097 19119 JDS 71317 a

1    election to become a member before the effective date of
2    this amendatory Act of the 97th General Assembly, (iii) the
3    individual does not receive credit for such service under
4    any other Article of this Code, and (iv) the individual
5    first became an officer or employee of the teacher
6    organization and becomes a member before the effective date
7    of this amendatory Act of the 97th General Assembly;
8        (9) Any educational, administrative, professional, or
9    other staff employed in a charter school operating in
10    compliance with the Charter Schools Law who is certificated
11    under the law governing the certification of teachers; .
12        (10) Any person employed, on the effective date of this
13    amendatory Act of the 94th General Assembly, by the
14    Macon-Piatt Regional Office of Education in a
15    birth-through-age-three pilot program receiving funds
16    under Section 2-389 of the School Code who is required by
17    the Macon-Piatt Regional Office of Education to hold a
18    teaching certificate, provided that the Macon-Piatt
19    Regional Office of Education makes an election, within 6
20    months after the effective date of this amendatory Act of
21    the 94th General Assembly, to have the person participate
22    in the system. Any service established prior to the
23    effective date of this amendatory Act of the 94th General
24    Assembly for service as an employee of the Macon-Piatt
25    Regional Office of Education in a birth-through-age-three
26    pilot program receiving funds under Section 2-389 of the

 

 

09700SB3168ham003- 62 -LRB097 19119 JDS 71317 a

1    School Code shall be considered service as a teacher if
2    employee and employer contributions have been received by
3    the system and the system has not refunded those
4    contributions.
5    An annuitant receiving a retirement annuity under this
6Article or under Article 17 of this Code who is employed by a
7board of education or other employer as permitted under Section
816-118 or 16-150.1 is not a "teacher" for purposes of this
9Article. A person who has received a single-sum retirement
10benefit under Section 16-136.4 of this Article is not a
11"teacher" for purposes of this Article.
12(Source: P.A. 97-651, eff. 1-5-12; revised 8-3-12.)
 
13    (40 ILCS 5/16-127)  (from Ch. 108 1/2, par. 16-127)
14    Sec. 16-127. Computation of creditable service.
15    (a) Each member shall receive regular credit for all
16service as a teacher from the date membership begins, for which
17satisfactory evidence is supplied and all contributions have
18been paid.
19    (b) The following periods of service shall earn optional
20credit and each member shall receive credit for all such
21service for which satisfactory evidence is supplied and all
22contributions have been paid as of the date specified:
23        (1) Prior service as a teacher.
24        (2) Service in a capacity essentially similar or
25    equivalent to that of a teacher, in the public common

 

 

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1    schools in school districts in this State not included
2    within the provisions of this System, or of any other
3    State, territory, dependency or possession of the United
4    States, or in schools operated by or under the auspices of
5    the United States, or under the auspices of any agency or
6    department of any other State, and service during any
7    period of professional speech correction or special
8    education experience for a public agency within this State
9    or any other State, territory, dependency or possession of
10    the United States, and service prior to February 1, 1951 as
11    a recreation worker for the Illinois Department of Public
12    Safety, for a period not exceeding the lesser of 2/5 of the
13    total creditable service of the member or 10 years. The
14    maximum service of 10 years which is allowable under this
15    paragraph shall be reduced by the service credit which is
16    validated by other retirement systems under paragraph (i)
17    of Section 15-113 and paragraph 1 of Section 17-133. Credit
18    granted under this paragraph may not be used in
19    determination of a retirement annuity or disability
20    benefits unless the member has at least 5 years of
21    creditable service earned subsequent to this employment
22    with one or more of the following systems: Teachers'
23    Retirement System of the State of Illinois, State
24    Universities Retirement System, and the Public School
25    Teachers' Pension and Retirement Fund of Chicago. Whenever
26    such service credit exceeds the maximum allowed for all

 

 

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1    purposes of this Article, the first service rendered in
2    point of time shall be considered. The changes to this
3    subdivision (b)(2) made by Public Act 86-272 shall apply
4    not only to persons who on or after its effective date
5    (August 23, 1989) are in service as a teacher under the
6    System, but also to persons whose status as such a teacher
7    terminated prior to such effective date, whether or not
8    such person is an annuitant on that date.
9        (3) Any periods immediately following teaching
10    service, under this System or under Article 17, (or
11    immediately following service prior to February 1, 1951 as
12    a recreation worker for the Illinois Department of Public
13    Safety) spent in active service with the military forces of
14    the United States; periods spent in educational programs
15    that prepare for return to teaching sponsored by the
16    federal government following such active military service;
17    if a teacher returns to teaching service within one
18    calendar year after discharge or after the completion of
19    the educational program, a further period, not exceeding
20    one calendar year, between time spent in military service
21    or in such educational programs and the return to
22    employment as a teacher under this System; and a period of
23    up to 2 years of active military service not immediately
24    following employment as a teacher.
25        The changes to this Section and Section 16-128 relating
26    to military service made by P.A. 87-794 shall apply not

 

 

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1    only to persons who on or after its effective date are in
2    service as a teacher under the System, but also to persons
3    whose status as a teacher terminated prior to that date,
4    whether or not the person is an annuitant on that date. In
5    the case of an annuitant who applies for credit allowable
6    under this Section for a period of military service that
7    did not immediately follow employment, and who has made the
8    required contributions for such credit, the annuity shall
9    be recalculated to include the additional service credit,
10    with the increase taking effect on the date the System
11    received written notification of the annuitant's intent to
12    purchase the credit, if payment of all the required
13    contributions is made within 60 days of such notice, or
14    else on the first annuity payment date following the date
15    of payment of the required contributions. In calculating
16    the automatic annual increase for an annuity that has been
17    recalculated under this Section, the increase attributable
18    to the additional service allowable under P.A. 87-794 shall
19    be included in the calculation of automatic annual
20    increases accruing after the effective date of the
21    recalculation.
22        Credit for military service shall be determined as
23    follows: if entry occurs during the months of July, August,
24    or September and the member was a teacher at the end of the
25    immediately preceding school term, credit shall be granted
26    from July 1 of the year in which he or she entered service;

 

 

09700SB3168ham003- 66 -LRB097 19119 JDS 71317 a

1    if entry occurs during the school term and the teacher was
2    in teaching service at the beginning of the school term,
3    credit shall be granted from July 1 of such year. In all
4    other cases where credit for military service is allowed,
5    credit shall be granted from the date of entry into the
6    service.
7        The total period of military service for which credit
8    is granted shall not exceed 5 years for any member unless
9    the service: (A) is validated before July 1, 1964, and (B)
10    does not extend beyond July 1, 1963. Credit for military
11    service shall be granted under this Section only if not
12    more than 5 years of the military service for which credit
13    is granted under this Section is used by the member to
14    qualify for a military retirement allotment from any branch
15    of the armed forces of the United States. The changes to
16    this subdivision (b)(3) made by Public Act 86-272 shall
17    apply not only to persons who on or after its effective
18    date (August 23, 1989) are in service as a teacher under
19    the System, but also to persons whose status as such a
20    teacher terminated prior to such effective date, whether or
21    not such person is an annuitant on that date.
22        (4) Any periods served as a member of the General
23    Assembly.
24        (5)(i) Any periods for which a teacher, as defined in
25    Section 16-106, is granted a leave of absence, provided he
26    or she returns to teaching service creditable under this

 

 

09700SB3168ham003- 67 -LRB097 19119 JDS 71317 a

1    System or the State Universities Retirement System
2    following the leave; (ii) periods during which a teacher is
3    involuntarily laid off from teaching, provided he or she
4    returns to teaching following the lay-off; (iii) periods
5    prior to July 1, 1983 during which a teacher ceased covered
6    employment due to pregnancy, provided that the teacher
7    returned to teaching service creditable under this System
8    or the State Universities Retirement System following the
9    pregnancy and submits evidence satisfactory to the Board
10    documenting that the employment ceased due to pregnancy;
11    and (iv) periods prior to July 1, 1983 during which a
12    teacher ceased covered employment for the purpose of
13    adopting an infant under 3 years of age or caring for a
14    newly adopted infant under 3 years of age, provided that
15    the teacher returned to teaching service creditable under
16    this System or the State Universities Retirement System
17    following the adoption and submits evidence satisfactory
18    to the Board documenting that the employment ceased for the
19    purpose of adopting an infant under 3 years of age or
20    caring for a newly adopted infant under 3 years of age.
21    However, total credit under this paragraph (5) may not
22    exceed 3 years.
23        Any qualified member or annuitant may apply for credit
24    under item (iii) or (iv) of this paragraph (5) without
25    regard to whether service was terminated before the
26    effective date of this amendatory Act of 1997. In the case

 

 

09700SB3168ham003- 68 -LRB097 19119 JDS 71317 a

1    of an annuitant who establishes credit under item (iii) or
2    (iv), the annuity shall be recalculated to include the
3    additional service credit. The increase in annuity shall
4    take effect on the date the System receives written
5    notification of the annuitant's intent to purchase the
6    credit, if the required evidence is submitted and the
7    required contribution paid within 60 days of that
8    notification, otherwise on the first annuity payment date
9    following the System's receipt of the required evidence and
10    contribution. The increase in an annuity recalculated
11    under this provision shall be included in the calculation
12    of automatic annual increases in the annuity accruing after
13    the effective date of the recalculation.
14        Optional credit may be purchased under this subsection
15    (b)(5) for periods during which a teacher has been granted
16    a leave of absence pursuant to Section 24-13 of the School
17    Code. A teacher whose service under this Article terminated
18    prior to the effective date of P.A. 86-1488 shall be
19    eligible to purchase such optional credit. If a teacher who
20    purchases this optional credit is already receiving a
21    retirement annuity under this Article, the annuity shall be
22    recalculated as if the annuitant had applied for the leave
23    of absence credit at the time of retirement. The difference
24    between the entitled annuity and the actual annuity shall
25    be credited to the purchase of the optional credit. The
26    remainder of the purchase cost of the optional credit shall

 

 

09700SB3168ham003- 69 -LRB097 19119 JDS 71317 a

1    be paid on or before April 1, 1992.
2        The change in this paragraph made by Public Act 86-273
3    shall be applicable to teachers who retire after June 1,
4    1989, as well as to teachers who are in service on that
5    date.
6        (6) Any days of unused and uncompensated accumulated
7    sick leave earned by a teacher who first became a
8    participant in the System before the effective date of this
9    amendatory Act of the 97th General Assembly. The service
10    credit granted under this paragraph shall be the ratio of
11    the number of unused and uncompensated accumulated sick
12    leave days to 170 days, subject to a maximum of 2 years of
13    service credit. Prior to the member's retirement, each
14    former employer shall certify to the System the number of
15    unused and uncompensated accumulated sick leave days
16    credited to the member at the time of termination of
17    service. The period of unused sick leave shall not be
18    considered in determining the effective date of
19    retirement. A member is not required to make contributions
20    in order to obtain service credit for unused sick leave.
21        Credit for sick leave shall, at retirement, be granted
22    by the System for any retiring regional or assistant
23    regional superintendent of schools who first became a
24    participant in this System before the effective date of
25    this amendatory Act of the 97th General Assembly at the
26    rate of 6 days per year of creditable service or portion

 

 

09700SB3168ham003- 70 -LRB097 19119 JDS 71317 a

1    thereof established while serving as such superintendent
2    or assistant superintendent.
3    Service credit is not available for unused sick leave
4accumulated by a teacher who first becomes a participant in
5this System on or after the effective date of this amendatory
6Act of the 97th General Assembly.
7        (7) Periods prior to February 1, 1987 served as an
8    employee of the Illinois Mathematics and Science Academy
9    for which credit has not been terminated under Section
10    15-113.9 of this Code.
11        (8) Service as a substitute teacher for work performed
12    prior to July 1, 1990.
13        (9) Service as a part-time teacher for work performed
14    prior to July 1, 1990.
15        (10) Up to 2 years of employment with Southern Illinois
16    University - Carbondale from September 1, 1959 to August
17    31, 1961, or with Governors State University from September
18    1, 1972 to August 31, 1974, for which the teacher has no
19    credit under Article 15. To receive credit under this item
20    (10), a teacher must apply in writing to the Board and pay
21    the required contributions before May 1, 1993 and have at
22    least 12 years of service credit under this Article.
23    (b-1) A member may establish optional credit for up to 2
24years of service as a teacher or administrator employed by a
25private school recognized by the Illinois State Board of
26Education, provided that the teacher (i) was certified under

 

 

09700SB3168ham003- 71 -LRB097 19119 JDS 71317 a

1the law governing the certification of teachers at the time the
2service was rendered, (ii) applies in writing on or after
3August 1, 2009 and on or before August 1, 2012, (iii) supplies
4satisfactory evidence of the employment, (iv) completes at
5least 10 years of contributing service as a teacher as defined
6in Section 16-106, and (v) pays the contribution required in
7subsection (d-5) of Section 16-128. The member may apply for
8credit under this subsection and pay the required contribution
9before completing the 10 years of contributing service required
10under item (iv), but the credit may not be used until the item
11(iv) contributing service requirement has been met.
12    (c) The service credits specified in this Section shall be
13granted only if: (1) such service credits are not used for
14credit in any other statutory tax-supported public employee
15retirement system other than the federal Social Security
16program; and (2) the member makes the required contributions as
17specified in Section 16-128. Except as provided in subsection
18(b-1) of this Section, the service credit shall be effective as
19of the date the required contributions are completed.
20    Any service credits granted under this Section shall
21terminate upon cessation of membership for any cause.
22    Credit may not be granted under this Section covering any
23period for which an age retirement or disability retirement
24allowance has been paid.
25(Source: P.A. 96-546, eff. 8-17-09.)
 

 

 

09700SB3168ham003- 72 -LRB097 19119 JDS 71317 a

1    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
2    Sec. 16-158. Contributions by State and other employing
3units.
4    (a) The State shall make contributions to the System by
5means of appropriations from the Common School Fund and other
6State funds of amounts which, together with other employer
7contributions, employee contributions, investment income, and
8other income, will be sufficient to meet the cost of
9maintaining and administering the System on a 90% funded basis
10in accordance with actuarial recommendations.
11    The Board shall determine the amount of State contributions
12required for each fiscal year on the basis of the actuarial
13tables and other assumptions adopted by the Board and the
14recommendations of the actuary, using the formula in subsection
15(b-3).
16    (a-1) Annually, on or before November 15, the Board shall
17certify to the Governor the amount of the required State
18contribution for the coming fiscal year. The certification
19shall include a copy of the actuarial recommendations upon
20which it is based.
21    On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking
24into account the amounts appropriated to and received by the
25System under subsection (d) of Section 7.2 of the General
26Obligation Bond Act.

 

 

09700SB3168ham003- 73 -LRB097 19119 JDS 71317 a

1    On or before July 1, 2005 April 1, 2011, the Board shall
2recalculate and recertify to the Governor the amount of the
3required State contribution to the System for State fiscal year
42006, taking into account the changes in required State
5contributions made by this amendatory Act of the 94th General
6Assembly.
7    On or before April 1, 2011 June 15, 2010, the Board shall
8recalculate and recertify to the Governor the amount of the
9required State contribution to the System for State fiscal year
102011, applying the changes made by Public Act 96-889 to the
11System's assets and liabilities as of June 30, 2009 as though
12Public Act 96-889 was approved on that date.
13    (b) Through State fiscal year 1995, the State contributions
14shall be paid to the System in accordance with Section 18-7 of
15the School Code.
16    (b-1) Beginning in State fiscal year 1996, on the 15th day
17of each month, or as soon thereafter as may be practicable, the
18Board shall submit vouchers for payment of State contributions
19to the System, in a total monthly amount of one-twelfth of the
20required annual State contribution certified under subsection
21(a-1). From the effective date of this amendatory Act of the
2293rd General Assembly through June 30, 2004, the Board shall
23not submit vouchers for the remainder of fiscal year 2004 in
24excess of the fiscal year 2004 certified contribution amount
25determined under this Section after taking into consideration
26the transfer to the System under subsection (a) of Section

 

 

09700SB3168ham003- 74 -LRB097 19119 JDS 71317 a

16z-61 of the State Finance Act. These vouchers shall be paid by
2the State Comptroller and Treasurer by warrants drawn on the
3funds appropriated to the System for that fiscal year.
4    If in any month the amount remaining unexpended from all
5other appropriations to the System for the applicable fiscal
6year (including the appropriations to the System under Section
78.12 of the State Finance Act and Section 1 of the State
8Pension Funds Continuing Appropriation Act) is less than the
9amount lawfully vouchered under this subsection, the
10difference shall be paid from the Common School Fund under the
11continuing appropriation authority provided in Section 1.1 of
12the State Pension Funds Continuing Appropriation Act.
13    (b-2) Allocations from the Common School Fund apportioned
14to school districts not coming under this System shall not be
15diminished or affected by the provisions of this Article.
16    (b-3) For State fiscal years 2012 through 2045, the minimum
17contribution to the System to be made by the State for each
18fiscal year shall be an amount determined by the System to be
19sufficient to bring the total assets of the System up to 90% of
20the total actuarial liabilities of the System by the end of
21State fiscal year 2045. In making these determinations, the
22required State contribution shall be calculated each year as a
23level percentage of payroll over the years remaining to and
24including fiscal year 2045 and shall be determined under the
25projected unit credit actuarial cost method.
26    For State fiscal years 1996 through 2005, the State

 

 

09700SB3168ham003- 75 -LRB097 19119 JDS 71317 a

1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3so that by State fiscal year 2011, the State is contributing at
4the rate required under this Section; except that in the
5following specified State fiscal years, the State contribution
6to the System shall not be less than the following indicated
7percentages of the applicable employee payroll, even if the
8indicated percentage will produce a State contribution in
9excess of the amount otherwise required under this subsection
10and subsection (a), and notwithstanding any contrary
11certification made under subsection (a-1) before the effective
12date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
13in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
142003; and 13.56% in FY 2004.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2006 is
17$534,627,700.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2007 is
20$738,014,500.
21    For each of State fiscal years 2008 through 2009, the State
22contribution to the System, as a percentage of the applicable
23employee payroll, shall be increased in equal annual increments
24from the required State contribution for State fiscal year
252007, so that by State fiscal year 2011, the State is
26contributing at the rate otherwise required under this Section.

 

 

09700SB3168ham003- 76 -LRB097 19119 JDS 71317 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2010 is
3$2,089,268,000 and shall be made from the proceeds of bonds
4sold in fiscal year 2010 pursuant to Section 7.2 of the General
5Obligation Bond Act, less (i) the pro rata share of bond sale
6expenses determined by the System's share of total bond
7proceeds, (ii) any amounts received from the Common School Fund
8in fiscal year 2010, and (iii) any reduction in bond proceeds
9due to the issuance of discounted bonds, if applicable.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2011 is
12the amount recertified by the System on or before April 1, 2011
13pursuant to subsection (a-1) of this Section and shall be made
14from the proceeds of bonds sold in fiscal year 2011 pursuant to
15Section 7.2 of the General Obligation Bond Act, less (i) the
16pro rata share of bond sale expenses determined by the System's
17share of total bond proceeds, (ii) any amounts received from
18the Common School Fund in fiscal year 2011, and (iii) any
19reduction in bond proceeds due to the issuance of discounted
20bonds, if applicable. This amount shall include, in addition to
21the amount certified by the System, an amount necessary to meet
22employer contributions required by the State as an employer
23under paragraph (e) of this Section, which may also be used by
24the System for contributions required by paragraph (a) of
25Section 16-127.
26    Beginning in State fiscal year 2046, the minimum State

 

 

09700SB3168ham003- 77 -LRB097 19119 JDS 71317 a

1contribution for each fiscal year shall be the amount needed to
2maintain the total assets of the System at 90% of the total
3actuarial liabilities of the System.
4    Amounts received by the System pursuant to Section 25 of
5the Budget Stabilization Act or Section 8.12 of the State
6Finance Act in any fiscal year do not reduce and do not
7constitute payment of any portion of the minimum State
8contribution required under this Article in that fiscal year.
9Such amounts shall not reduce, and shall not be included in the
10calculation of, the required State contributions under this
11Article in any future year until the System has reached a
12funding ratio of at least 90%. A reference in this Article to
13the "required State contribution" or any substantially similar
14term does not include or apply to any amounts payable to the
15System under Section 25 of the Budget Stabilization Act.
16    Notwithstanding any other provision of this Section, the
17required State contribution for State fiscal year 2005 and for
18fiscal year 2008 and each fiscal year thereafter, as calculated
19under this Section and certified under subsection (a-1), shall
20not exceed an amount equal to (i) the amount of the required
21State contribution that would have been calculated under this
22Section for that fiscal year if the System had not received any
23payments under subsection (d) of Section 7.2 of the General
24Obligation Bond Act, minus (ii) the portion of the State's
25total debt service payments for that fiscal year on the bonds
26issued in fiscal year 2003 for the purposes of that Section

 

 

09700SB3168ham003- 78 -LRB097 19119 JDS 71317 a

17.2, as determined and certified by the Comptroller, that is
2the same as the System's portion of the total moneys
3distributed under subsection (d) of Section 7.2 of the General
4Obligation Bond Act. In determining this maximum for State
5fiscal years 2008 through 2010, however, the amount referred to
6in item (i) shall be increased, as a percentage of the
7applicable employee payroll, in equal increments calculated
8from the sum of the required State contribution for State
9fiscal year 2007 plus the applicable portion of the State's
10total debt service payments for fiscal year 2007 on the bonds
11issued in fiscal year 2003 for the purposes of Section 7.2 of
12the General Obligation Bond Act, so that, by State fiscal year
132011, the State is contributing at the rate otherwise required
14under this Section.
15    (c) Payment of the required State contributions and of all
16pensions, retirement annuities, death benefits, refunds, and
17other benefits granted under or assumed by this System, and all
18expenses in connection with the administration and operation
19thereof, are obligations of the State.
20    If members are paid from special trust or federal funds
21which are administered by the employing unit, whether school
22district or other unit, the employing unit shall pay to the
23System from such funds the full accruing retirement costs based
24upon that service, as determined by the System. Employer
25contributions, based on salary paid to members from federal
26funds, may be forwarded by the distributing agency of the State

 

 

09700SB3168ham003- 79 -LRB097 19119 JDS 71317 a

1of Illinois to the System prior to allocation, in an amount
2determined in accordance with guidelines established by such
3agency and the System.
4    (d) Effective July 1, 1986, any employer of a teacher as
5defined in paragraph (8) of Section 16-106 shall pay the
6employer's normal cost of benefits based upon the teacher's
7service, in addition to employee contributions, as determined
8by the System. Such employer contributions shall be forwarded
9monthly in accordance with guidelines established by the
10System.
11    However, with respect to benefits granted under Section
1216-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
13of Section 16-106, the employer's contribution shall be 12%
14(rather than 20%) of the member's highest annual salary rate
15for each year of creditable service granted, and the employer
16shall also pay the required employee contribution on behalf of
17the teacher. For the purposes of Sections 16-133.4 and
1816-133.5, a teacher as defined in paragraph (8) of Section
1916-106 who is serving in that capacity while on leave of
20absence from another employer under this Article shall not be
21considered an employee of the employer from which the teacher
22is on leave.
23    (e) Beginning July 1, 1998, every employer of a teacher
24shall pay to the System an employer contribution computed as
25follows:
26        (1) Beginning July 1, 1998 through June 30, 1999, the

 

 

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1    employer contribution shall be equal to 0.3% of each
2    teacher's salary.
3        (2) Beginning July 1, 1999 and thereafter, the employer
4    contribution shall be equal to 0.58% of each teacher's
5    salary.
6The school district or other employing unit may pay these
7employer contributions out of any source of funding available
8for that purpose and shall forward the contributions to the
9System on the schedule established for the payment of member
10contributions.
11    These employer contributions are intended to offset a
12portion of the cost to the System of the increases in
13retirement benefits resulting from this amendatory Act of 1998.
14    Each employer of teachers is entitled to a credit against
15the contributions required under this subsection (e) with
16respect to salaries paid to teachers for the period January 1,
172002 through June 30, 2003, equal to the amount paid by that
18employer under subsection (a-5) of Section 6.6 of the State
19Employees Group Insurance Act of 1971 with respect to salaries
20paid to teachers for that period.
21    The additional 1% employee contribution required under
22Section 16-152 by this amendatory Act of 1998 is the
23responsibility of the teacher and not the teacher's employer,
24unless the employer agrees, through collective bargaining or
25otherwise, to make the contribution on behalf of the teacher.
26    If an employer is required by a contract in effect on May

 

 

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

 

 

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1shall apply in calculating whether the increase in his or her
2salary is in excess of 6%. For the purposes of this Section,
3change in employment under Section 10-21.12 of the School Code
4on or after June 1, 2005 shall constitute a change in employer.
5The System may require the employer to provide any pertinent
6information or documentation. The changes made to this
7subsection (f) by this amendatory Act of the 94th General
8Assembly apply without regard to whether the teacher was in
9service on or after its effective date.
10    Whenever it determines that a payment is or may be required
11under this subsection, the System shall calculate the amount of
12the payment and bill the employer for that amount. The bill
13shall specify the calculations used to determine the amount
14due. If the employer disputes the amount of the bill, it may,
15within 30 days after receipt of the bill, apply to the System
16in writing for a recalculation. The application must specify in
17detail the grounds of the dispute and, if the employer asserts
18that the calculation is subject to subsection (g) or (h) of
19this Section, must include an affidavit setting forth and
20attesting to all facts within the employer's knowledge that are
21pertinent to the applicability of that subsection. Upon
22receiving a timely application for recalculation, the System
23shall review the application and, if appropriate, recalculate
24the amount due.
25    The employer contributions required under this subsection
26(f) may be paid in the form of a lump sum within 90 days after

 

 

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1receipt of the bill. If the employer contributions are not paid
2within 90 days after receipt of the bill, then interest will be
3charged at a rate equal to the System's annual actuarially
4assumed rate of return on investment compounded annually from
5the 91st day after receipt of the bill. Payments must be
6concluded within 3 years after the employer's receipt of the
7bill.
8    (g) This subsection (g) applies only to payments made or
9salary increases given on or after June 1, 2005 but before July
101, 2011. The changes made by Public Act 94-1057 shall not
11require the System to refund any payments received before July
1231, 2006 (the effective date of Public Act 94-1057).
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude salary increases paid to teachers
15under contracts or collective bargaining agreements entered
16into, amended, or renewed before June 1, 2005.
17    When assessing payment for any amount due under subsection
18(f), the System shall exclude salary increases paid to a
19teacher at a time when the teacher is 10 or more years from
20retirement eligibility under Section 16-132 or 16-133.2.
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude salary increases resulting from
23overload work, including summer school, when the school
24district has certified to the System, and the System has
25approved the certification, that (i) the overload work is for
26the sole purpose of classroom instruction in excess of the

 

 

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

 

 

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

 

 

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1which shall be calculated as follows:
2    As of June 30, 2008, the actuarial value of the System's
3assets shall be equal to the market value of the assets as of
4that date. In determining the actuarial value of the System's
5assets for fiscal years after June 30, 2008, any actuarial
6gains or losses from investment return incurred in a fiscal
7year shall be recognized in equal annual amounts over the
85-year period following that fiscal year.
9    (k) For purposes of determining the required State
10contribution to the system for a particular year, the actuarial
11value of assets shall be assumed to earn a rate of return equal
12to the system's actuarially assumed rate of return.
13(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
1496-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff.
151-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
 
16    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
17    Sec. 18-140. To certify required State contributions and
18submit vouchers.
19    (a) The Board shall certify to the Governor, on or before
20November 15 of each year through until November 15, 2011, the
21amount of the required State contribution to the System for the
22following fiscal year and shall specifically identify the
23System's projected State normal cost for that fiscal year. The
24certification shall include a copy of the actuarial
25recommendations upon which it is based and shall specifically

 

 

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

 

 

09700SB3168ham003- 88 -LRB097 19119 JDS 71317 a

1    (a-7) On or before May 1, 2004, the Board shall recalculate
2and recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2005, taking
4into account the amounts appropriated to and received by the
5System under subsection (d) of Section 7.2 of the General
6Obligation Bond Act.
7    On or before July 1, 2005, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2006, taking
10into account the changes in required State contributions made
11by this amendatory Act of the 94th General Assembly.
12    On or before April 1, 2011, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2011, applying
15the changes made by Public Act 96-889 to the System's assets
16and liabilities as of June 30, 2009 as though Public Act 96-889
17was approved on that date.
18    (b) Beginning in State fiscal year 1996, on or as soon as
19possible after the 15th day of each month the Board shall
20submit vouchers for payment of State contributions to the
21System, in a total monthly amount of one-twelfth of the
22required annual State contribution certified under subsection
23(a). From the effective date of this amendatory Act of the 93rd
24General Assembly through June 30, 2004, the Board shall not
25submit vouchers for the remainder of fiscal year 2004 in excess
26of the fiscal year 2004 certified contribution amount

 

 

09700SB3168ham003- 89 -LRB097 19119 JDS 71317 a

1determined under this Section after taking into consideration
2the transfer to the System under subsection (c) of Section
36z-61 of the State Finance Act. These vouchers shall be paid by
4the State Comptroller and Treasurer by warrants drawn on the
5funds appropriated to the System for that fiscal year.
6    If in any month the amount remaining unexpended from all
7other appropriations to the System for the applicable fiscal
8year (including the appropriations to the System under Section
98.12 of the State Finance Act and Section 1 of the State
10Pension Funds Continuing Appropriation Act) is less than the
11amount lawfully vouchered under this Section, the difference
12shall be paid from the General Revenue Fund under the
13continuing appropriation authority provided in Section 1.1 of
14the State Pension Funds Continuing Appropriation Act.
15(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1697-694, eff. 6-18-12.)
 
17    Section 105. Severability and inseverability. The
18provisions set forth in Sections 15, 25, and 999 of this Act,
19as well as Sections 2-134, 7-109, 14-135.08, 15-165, and 18-140
20and subsection (a-5) of Section 16-158 of the Illinois Pension
21Code, as set forth in Section 30 of this Act, are severable
22pursuant to Section 1.31 of the Statute on Statutes, and are
23not mutually dependent upon the provisions set forth in any
24other Section of this Act.
25    Section 10, as well as the other provisions of Section 30

 

 

09700SB3168ham003- 90 -LRB097 19119 JDS 71317 a

1of this Act, are mutually dependent and inseverable. If any of
2those provision is held invalid other than as applied to a
3particular person or circumstance, then all of those provisions
4are invalid.".