Rep. Jay Hoffman

Filed: 3/1/2013

 

 


 

 


 
09800HB1154ham005LRB098 08482 EFG 41969 a

1
AMENDMENT TO HOUSE BILL 1154

2    AMENDMENT NO. ______. Amend House Bill 1154, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Budget Stabilization Act is amended by
6changing Sections 20 and 25 as follows:
 
7    (30 ILCS 122/20)
8    Sec. 20. Pension Stabilization Fund.
9    (a) The Pension Stabilization Fund is hereby created as a
10special fund in the State treasury. Moneys in the fund shall be
11used for the sole purpose of making payments to the designated
12retirement systems as provided in Section 25.
13    (b) For each fiscal year when the General Assembly's
14appropriations and transfers or diversions as required by law
15from general funds do not exceed 99% of the estimated general
16funds revenues pursuant to subsection (a) of Section 10, the

 

 

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1Comptroller shall transfer from the General Revenue Fund as
2provided by this Section a total amount equal to 0.5% of the
3estimated general funds revenues to the Pension Stabilization
4Fund.
5    (c) For each fiscal year through Fiscal Year 2013 when the
6General Assembly's appropriations and transfers or diversions
7as required by law from general funds do not exceed 98% of the
8estimated general funds revenues pursuant to subsection (b) of
9Section 10, the Comptroller shall transfer from the General
10Revenue Fund as provided by this Section a total amount equal
11to 1.0% of the estimated general funds revenues to the Pension
12Stabilization Fund.
13    (c-5) In Fiscal Year 2016 and each fiscal year thereafter,
14the State Comptroller shall order transferred and the State
15Treasurer shall transfer the following amounts from the General
16Revenue Fund to the Pension Stabilization Fund:
17    in Fiscal Year 2016, $441,429,372;
18    in Fiscal Year 2017, $150,545,372;
19    in Fiscal Year 2018, $179,267,872;
20    in Fiscal Year 2019, $211,777,872;
21    in Fiscal Year 2020, $1,123,333,372;
22    in Fiscal Year 2021, $1,084,470,872;
23    in Fiscal Year 2022, $1,048,083,372;
24    in Fiscal Year 2023, $1,014,170,872;
25    in Fiscal Year 2024, $957,733,372;
26    in Fiscal Year 2025, $905,683,372;

 

 

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1    in Fiscal Year 2026, $882,458,372;
2    in Fiscal Year 2027, $861,783,372;
3    in Fiscal Year 2028, $818,658,372;
4    in Fiscal Year 2029, $779,358,372;
5    in Fiscal Year 2030, $718,883,372;
6    in Fiscal Year 2031, $663,508,372;
7    in Fiscal Year 2032, $638,233,372;
8    in Fiscal Year 2033, $641,783,372;
9    in Fiscal Year 2034, $1,797,883,372;
10    in Fiscal Year 2035, $1,797,883,372;
11    in Fiscal Year 2036, $1,797,883,372;
12    in Fiscal Year 2037, $1,797,883,372;
13    in Fiscal Year 2038, $1,797,883,372;
14    in Fiscal Year 2039, $1,797,883,372;
15    in Fiscal Year 2040, $1,797,883,372;
16    in Fiscal Year 2041, $1,797,883,372;
17    in Fiscal Year 2042, $1,797,883,372;
18    in Fiscal Year 2043, $1,797,883,372;
19    in Fiscal Year 2044, $1,797,883,372; and
20    in Fiscal Year 2045, $1,797,883,372.
21    (c-10) The transfers made pursuant to subsection (c-5) of
22this Section shall continue until Fiscal Year 2045 or until
23each of the designated retirement systems, as defined in
24Section 25, has achieved a funding ratio of at least 100%,
25whichever occurs first.
26    (d) The Comptroller shall transfer 1/12 of the total amount

 

 

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1to be transferred each fiscal year under this Section into the
2Pension Stabilization Fund on the first day of each month of
3that fiscal year or as soon thereafter as possible; except that
4the final transfer of the fiscal year shall be made as soon as
5practical after the August 31 following the end of the fiscal
6year.
7    Until Fiscal Year 2014, before Before the final transfer
8for a fiscal year is made, the Comptroller shall reconcile the
9estimated general funds revenues used in calculating the other
10transfers under this Section for that fiscal year with the
11actual general funds revenues for that fiscal year. The final
12transfer for the fiscal year shall be adjusted so that the
13total amount transferred under this Section for that fiscal
14year is equal to the percentage specified in subsection (b) or
15(c) of this Section, whichever is applicable, of the actual
16general funds revenues for that fiscal year. The actual general
17funds revenues for the fiscal year shall be calculated in a
18manner consistent with subsection (c) of Section 10 of this
19Act.
20(Source: P.A. 94-839, eff. 6-6-06.)
 
21    (30 ILCS 122/25)
22    Sec. 25. Transfers from the Pension Stabilization Fund.
23    (a) As used in this Section, "designated retirement
24systems" means:
25        (1) the State Employees' Retirement System of

 

 

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1    Illinois;
2        (2) the Teachers' Retirement System of the State of
3    Illinois;
4        (3) the State Universities Retirement System;
5        (4) the Judges Retirement System of Illinois; and
6        (5) the General Assembly Retirement System.
7    (b) As soon as may be practical after any money is
8deposited into the Pension Stabilization Fund, the State
9Comptroller shall apportion the deposited amount among the
10designated retirement systems and the State Comptroller and
11State Treasurer shall pay the apportioned amounts to the
12designated retirement systems. The amount deposited shall be
13apportioned among the designated retirement systems in
14proportion to their respective certified State contributions
15for the State fiscal year in which the payment is made to those
16systems in the same proportion as their respective portions of
17the total actuarial reserve deficiency of the designated
18retirement systems, as most recently determined by the
19Governor's Office of Management and Budget. Amounts received by
20a designated retirement system under this Section shall be used
21for funding the unfunded liabilities of the retirement system.
22Payments under this Section are authorized by the continuing
23appropriation under Section 1.7 of the State Pension Funds
24Continuing Appropriation Act.
25    (c) At the request of the State Comptroller, the Governor's
26Office of Management and Budget shall determine the individual

 

 

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1and total actuarial reserve deficiencies of the designated
2retirement systems. For this purpose, the Governor's Office of
3Management and Budget shall consider the latest available audit
4and actuarial reports of each of the retirement systems and the
5relevant reports and statistics of the Public Pension Division
6of the Department of Financial and Professional Regulation.
7    (d) Payments to the designated retirement systems under
8this Section shall be in addition to, and not in lieu of, any
9State contributions required under Section 2-124, 14-131,
1015-155, 16-158, or 18-131 of the Illinois Pension Code.
11(Source: P.A. 94-839, eff. 6-6-06.)
 
12    Section 15. The Illinois Pension Code is amended by
13changing Sections 1-103.3, 2-124, 2-125, 14-131, 14-132,
1415-155, 15-156, and 16-158 and adding Section 16-158.2 as
15follows:
 
16    (40 ILCS 5/1-103.3)
17    Sec. 1-103.3. Application of 1994 amendment; funding
18standard.
19    (a) The provisions of Public Act 88-593 this amendatory Act
20of 1994 that change the method of calculating, certifying, and
21paying the required State contributions to the retirement
22systems established under Articles 2, 14, 15, 16, and 18 shall
23first apply to the State contributions required for State
24fiscal year 1996.

 

 

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1    (b) (Blank) The General Assembly declares that a funding
2ratio (the ratio of a retirement system's total assets to its
3total actuarial liabilities) of 90% is an appropriate goal for
4State-funded retirement systems in Illinois, and it finds that
5a funding ratio of 90% is now the generally-recognized norm
6throughout the nation for public employee retirement systems
7that are considered to be financially secure and funded in an
8appropriate and responsible manner.
9    (c) Every 5 years, beginning in 1999, the Commission on
10Government Forecasting and Accountability, in consultation
11with the affected retirement systems and the Governor's Office
12of Management and Budget (formerly Bureau of the Budget), shall
13consider and determine whether the funding goals 90% funding
14ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
15continue subsection (b) continues to represent an appropriate
16funding goals goal for those State-funded retirement systems in
17Illinois, and it shall report its findings and recommendations
18on this subject to the Governor and the General Assembly.
19(Source: P.A. 93-1067, eff. 1-15-05.)
 
20    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
21    Sec. 2-124. Contributions by State.
22    (a) The State shall make contributions to the System by
23appropriations of amounts which, together with the
24contributions of participants, interest earned on investments,
25and other income will meet the cost of maintaining and

 

 

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1administering the System on a 100% 90% funded basis in
2accordance with actuarial recommendations.
3    (b) The Board shall determine the amount of State
4contributions required for each fiscal year on the basis of the
5actuarial tables and other assumptions adopted by the Board and
6the prescribed rate of interest, using the formula in
7subsection (c).
8    (c) For State fiscal years 2015 through 2045, the minimum
9contribution to the System to be made by the State for each
10fiscal year shall be an amount determined by the System to be
11sufficient to bring the total assets of the System up to 100%
12of the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of payroll over the years remaining to and
16including fiscal year 2045 and shall be determined under the
17projected unit credit actuarial cost method.
18    For State fiscal years 2012 through 2014 2045, the minimum
19contribution to the System to be made by the State for each
20fiscal year shall be an amount determined by the System to be
21sufficient to bring the total assets of the System up to 90% of
22the total actuarial liabilities of the System by the end of
23State fiscal year 2045. In making these determinations, the
24required State contribution shall be calculated each year as a
25level percentage of payroll over the years remaining to and
26including fiscal year 2045 and shall be determined under the

 

 

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1projected unit credit actuarial cost method.
2    For State fiscal years 1996 through 2005, the State
3contribution to the System, as a percentage of the applicable
4employee payroll, shall be increased in equal annual increments
5so that by State fiscal year 2011, the State is contributing at
6the rate required under this Section.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2006 is
9$4,157,000.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2007 is
12$5,220,300.
13    For each of State fiscal years 2008 through 2009, the State
14contribution to the System, as a percentage of the applicable
15employee payroll, shall be increased in equal annual increments
16from the required State contribution for State fiscal year
172007, so that by State fiscal year 2011, the State is
18contributing at the rate otherwise required under this Section.
19    Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2010 is
21$10,454,000 and shall be made from the proceeds of bonds sold
22in fiscal year 2010 pursuant to Section 7.2 of the General
23Obligation Bond Act, less (i) the pro rata share of bond sale
24expenses determined by the System's share of total bond
25proceeds, (ii) any amounts received from the General Revenue
26Fund in fiscal year 2010, and (iii) any reduction in bond

 

 

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1proceeds due to the issuance of discounted bonds, if
2applicable.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2011 is
5the amount recertified by the System on or before April 1, 2011
6pursuant to Section 2-134 and shall be made from the proceeds
7of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
8the General Obligation Bond Act, less (i) the pro rata share of
9bond sale expenses determined by the System's share of total
10bond proceeds, (ii) any amounts received from the General
11Revenue Fund in fiscal year 2011, and (iii) any reduction in
12bond proceeds due to the issuance of discounted bonds, if
13applicable.
14    Beginning in State fiscal year 2046, the minimum State
15contribution for each fiscal year shall be the amount needed to
16maintain the total assets of the System at 100% 90% of the
17total actuarial liabilities of the System.
18    Amounts received by the System pursuant to Section 25 of
19the Budget Stabilization Act or Section 8.12 of the State
20Finance Act in any fiscal year do not reduce and do not
21constitute payment of any portion of the minimum State
22contribution required under this Article in that fiscal year.
23Such amounts shall not reduce, and shall not be included in the
24calculation of, the required State contributions under this
25Article in any future year until the System has reached a
26funding ratio of at least 80% 90%. A reference in this Article

 

 

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1to the "required State contribution" or any substantially
2similar term does not include or apply to any amounts payable
3to the System under Section 25 of the Budget Stabilization Act.
4    Notwithstanding any other provision of this Code or the
5Budget Stabilization Act, amounts transferred to the System
6pursuant to the Budget Stabilization Act after the effective
7date of this amendatory Act of the 98th General Assembly do not
8reduce and do not constitute payment of any portion of the
9required State contribution under this Article in that fiscal
10year. Such amounts shall not reduce, and shall not be included
11in the calculation of, the required State contributions under
12this Article in any future year until the System has received
13payment of contributions pursuant to the Budget Stabilization
14Act.
15    Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter through State
18fiscal year 2014, as calculated under this Section and
19certified under Section 2-134, shall not exceed an amount equal
20to (i) the amount of the required State contribution that would
21have been calculated under this Section for that fiscal year if
22the System had not received any payments under subsection (d)
23of Section 7.2 of the General Obligation Bond Act, minus (ii)
24the portion of the State's total debt service payments for that
25fiscal year on the bonds issued in fiscal year 2003 for the
26purposes of that Section 7.2, as determined and certified by

 

 

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1the Comptroller, that is the same as the System's portion of
2the total moneys distributed under subsection (d) of Section
37.2 of the General Obligation Bond Act. In determining this
4maximum for State fiscal years 2008 through 2010, however, the
5amount referred to in item (i) shall be increased, as a
6percentage of the applicable employee payroll, in equal
7increments calculated from the sum of the required State
8contribution for State fiscal year 2007 plus the applicable
9portion of the State's total debt service payments for fiscal
10year 2007 on the bonds issued in fiscal year 2003 for the
11purposes of Section 7.2 of the General Obligation Bond Act, so
12that, by State fiscal year 2011, the State is contributing at
13the rate otherwise required under this Section.
14    (d) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18    As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25    (e) For purposes of determining the required State
26contribution to the system for a particular year, the actuarial

 

 

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1value of assets shall be assumed to earn a rate of return equal
2to the system's actuarially assumed rate of return.
3(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
496-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
57-13-12.)
 
6    (40 ILCS 5/2-125)  (from Ch. 108 1/2, par. 2-125)
7    Sec. 2-125. Obligations of State; funding guarantee.
8    (a) The payment of (1) the required State contributions,
9(2) all benefits granted under this system and (3) all expenses
10of administration and operation are obligations of the State to
11the extent specified in this Article.
12    (b) All income, interest and dividends derived from
13deposits and investments shall be credited to the account of
14the system in the State Treasury and used to pay benefits under
15this Article.
16    (c) Pursuant to Article XIII, Section 5 of the 1970
17Constitution of the State of Illinois, beginning on July 1,
182013, the State shall, as a retirement benefit to each
19participant and annuitant of the System be contractually
20obligated to the System (as a fiduciary and trustee of the
21participants and annuitants) to pay the annual required State
22contribution, as determined by the Board of the System using
23generally accepted actuarial principles, as is necessary to
24bring the total assets of the System up to 100% of the total
25actuarial liabilities of the System by the end of State fiscal

 

 

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1year 2045. As a further retirement benefit and contractual
2obligation, each fiscal year, the State shall pay to each
3designated retirement system the annual required State
4contribution certified by the Board for that fiscal year.
5Payments of the annual required State contribution for each
6fiscal year shall be made in equal monthly installments.
7Additionally, beginning in fiscal year 2014, State transfers to
8the Pension Stabilization Fund pursuant to Section 20 of the
9Budget Stabilization Act and payments to the System pursuant to
10Section 25 of the Budget Stabilization Act shall be further
11retirement benefits and contractual obligations. The transfers
12and payments prescribed in Sections 20 and 25 of the Budget
13Stabilization Act shall not be used by the retirement system
14when calculation any pension payment until the System has
15reached a funded level of 100%. This Section and the security
16it provides to participants and annuitants is intended to be,
17and is, a contractual right that is part of the pension
18benefits provided to the participants and annuitants.
19Notwithstanding anything to the contrary in the Court of Claims
20Act or any other law, a designated retirement system has the
21exclusive right to and shall bring a mandamus action in the
22Circuit Court of Sangamon County against the State to compel
23the State to make any installment of the annual required State
24contribution required by this Section, irrespective of other
25remedies that may be available to the System. Each member or
26annuitant of the System has the right to in any judicial

 

 

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1district in which the System maintains an office if the System
2fails to bring an action specified in this Section,
3irrespective of other remedies that may be available to the
4member or annuitant. In making these determinations, the
5required State contribution shall be calculated each year as a
6level percentage of payroll over the years remaining to and
7including fiscal year 2045 and shall be determined under the
8projected unit credit actuarial cost method.
9(Source: P.A. 83-1440.)
 
10    (40 ILCS 5/14-131)
11    Sec. 14-131. Contributions by State.
12    (a) The State shall make contributions to the System by
13appropriations of amounts which, together with other employer
14contributions from trust, federal, and other funds, employee
15contributions, investment income, and other income, will be
16sufficient to meet the cost of maintaining and administering
17the System on a 100% 90% funded basis in accordance with
18actuarial recommendations.
19    For the purposes of this Section and Section 14-135.08,
20references to State contributions refer only to employer
21contributions and do not include employee contributions that
22are picked up or otherwise paid by the State or a department on
23behalf of the employee.
24    (b) The Board shall determine the total amount of State
25contributions required for each fiscal year on the basis of the

 

 

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1actuarial tables and other assumptions adopted by the Board,
2using the formula in subsection (e).
3    The Board shall also determine a State contribution rate
4for each fiscal year, expressed as a percentage of payroll,
5based on the total required State contribution for that fiscal
6year (less the amount received by the System from
7appropriations under Section 8.12 of the State Finance Act and
8Section 1 of the State Pension Funds Continuing Appropriation
9Act, if any, for the fiscal year ending on the June 30
10immediately preceding the applicable November 15 certification
11deadline), the estimated payroll (including all forms of
12compensation) for personal services rendered by eligible
13employees, and the recommendations of the actuary.
14    For the purposes of this Section and Section 14.1 of the
15State Finance Act, the term "eligible employees" includes
16employees who participate in the System, persons who may elect
17to participate in the System but have not so elected, persons
18who are serving a qualifying period that is required for
19participation, and annuitants employed by a department as
20described in subdivision (a)(1) or (a)(2) of Section 14-111.
21    (c) Contributions shall be made by the several departments
22for each pay period by warrants drawn by the State Comptroller
23against their respective funds or appropriations based upon
24vouchers stating the amount to be so contributed. These amounts
25shall be based on the full rate certified by the Board under
26Section 14-135.08 for that fiscal year. From the effective date

 

 

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1of this amendatory Act of the 93rd General Assembly through the
2payment of the final payroll from fiscal year 2004
3appropriations, the several departments shall not make
4contributions for the remainder of fiscal year 2004 but shall
5instead make payments as required under subsection (a-1) of
6Section 14.1 of the State Finance Act. The several departments
7shall resume those contributions at the commencement of fiscal
8year 2005.
9    (c-1) Notwithstanding subsection (c) of this Section, for
10fiscal years 2010, 2012, and 2013 only, contributions by the
11several departments are not required to be made for General
12Revenue Funds payrolls processed by the Comptroller. Payrolls
13paid by the several departments from all other State funds must
14continue to be processed pursuant to subsection (c) of this
15Section.
16    (c-2) For State fiscal years 2010, 2012, and 2013 only, on
17or as soon as possible after the 15th day of each month, the
18Board shall submit vouchers for payment of State contributions
19to the System, in a total monthly amount of one-twelfth of the
20fiscal year General Revenue Fund contribution as certified by
21the System pursuant to Section 14-135.08 of the Illinois
22Pension Code.
23    (d) If an employee is paid from trust funds or federal
24funds, the department or other employer shall pay employer
25contributions from those funds to the System at the certified
26rate, unless the terms of the trust or the federal-State

 

 

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1agreement preclude the use of the funds for that purpose, in
2which case the required employer contributions shall be paid by
3the State. From the effective date of this amendatory Act of
4the 93rd General Assembly through the payment of the final
5payroll from fiscal year 2004 appropriations, the department or
6other employer shall not pay contributions for the remainder of
7fiscal year 2004 but shall instead make payments as required
8under subsection (a-1) of Section 14.1 of the State Finance
9Act. The department or other employer shall resume payment of
10contributions at the commencement of fiscal year 2005.
11    (e) For State fiscal years 2015 through 2045, the minimum
12contribution to the System to be made by the State for each
13fiscal year shall be an amount determined by the System to be
14sufficient to bring the total assets of the System up to 100%
15of the total actuarial liabilities of the System by the end of
16State fiscal year 2045. In making these determinations, the
17required State contribution shall be calculated each year as a
18level percentage of payroll over the years remaining to and
19including fiscal year 2045 and shall be determined under the
20projected unit credit actuarial cost method.
21    For State fiscal years 2012 through 2014 2045, the minimum
22contribution to the System to be made by the State for each
23fiscal year shall be an amount determined by the System to be
24sufficient to bring the total assets of the System up to 90% of
25the total actuarial liabilities of the System by the end of
26State fiscal year 2045. In making these determinations, the

 

 

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1required State contribution shall be calculated each year as a
2level percentage of payroll over the years remaining to and
3including fiscal year 2045 and shall be determined under the
4projected unit credit actuarial cost method.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section; except that (i) for State
10fiscal year 1998, for all purposes of this Code and any other
11law of this State, the certified percentage of the applicable
12employee payroll shall be 5.052% for employees earning eligible
13creditable service under Section 14-110 and 6.500% for all
14other employees, notwithstanding any contrary certification
15made under Section 14-135.08 before the effective date of this
16amendatory Act of 1997, and (ii) in the following specified
17State fiscal years, the State contribution to the System shall
18not be less than the following indicated percentages of the
19applicable employee payroll, even if the indicated percentage
20will produce a State contribution in excess of the amount
21otherwise required under this subsection and subsection (a):
229.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
232002; 10.6% in FY 2003; and 10.8% in FY 2004.
24    Notwithstanding any other provision of this Article, the
25total required State contribution to the System for State
26fiscal year 2006 is $203,783,900.

 

 

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1    Notwithstanding any other provision of this Article, the
2total required State contribution to the System for State
3fiscal year 2007 is $344,164,400.
4    For each of State fiscal years 2008 through 2009, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7from the required State contribution for State fiscal year
82007, so that by State fiscal year 2011, the State is
9contributing at the rate otherwise required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State General Revenue Fund contribution for
12State fiscal year 2010 is $723,703,100 and shall be made from
13the proceeds of bonds sold in fiscal year 2010 pursuant to
14Section 7.2 of the General Obligation Bond Act, less (i) the
15pro rata share of bond sale expenses determined by the System's
16share of total bond proceeds, (ii) any amounts received from
17the General Revenue Fund in fiscal year 2010, and (iii) any
18reduction in bond proceeds due to the issuance of discounted
19bonds, if applicable.
20    Notwithstanding any other provision of this Article, the
21total required State General Revenue Fund contribution for
22State fiscal year 2011 is the amount recertified by the System
23on or before April 1, 2011 pursuant to Section 14-135.08 and
24shall be made from the proceeds of bonds sold in fiscal year
252011 pursuant to Section 7.2 of the General Obligation Bond
26Act, less (i) the pro rata share of bond sale expenses

 

 

09800HB1154ham005- 21 -LRB098 08482 EFG 41969 a

1determined by the System's share of total bond proceeds, (ii)
2any amounts received from the General Revenue Fund in fiscal
3year 2011, and (iii) any reduction in bond proceeds due to the
4issuance of discounted bonds, if applicable.
5    Beginning in State fiscal year 2046, the minimum State
6contribution for each fiscal year shall be the amount needed to
7maintain the total assets of the System at 90% of the total
8actuarial liabilities of the System.
9    Amounts received by the System pursuant to Section 25 of
10the Budget Stabilization Act or Section 8.12 of the State
11Finance Act in any fiscal year do not reduce and do not
12constitute payment of any portion of the minimum State
13contribution required under this Article in that fiscal year.
14Such amounts shall not reduce, and shall not be included in the
15calculation of, the required State contributions under this
16Article in any future year until the System has reached a
17funding ratio of at least 100% 90%. A reference in this Article
18to the "required State contribution" or any substantially
19similar term does not include or apply to any amounts payable
20to the System under Section 25 of the Budget Stabilization Act.
21    Notwithstanding any other provision of this Code or the
22Budget Stabilization Act, amounts transferred to the System
23pursuant to the Budget Stabilization Act after the effective
24date of this amendatory Act of the 98th General Assembly do not
25reduce and do not constitute payment of any portion of the
26required State contribution under this Article in that fiscal

 

 

09800HB1154ham005- 22 -LRB098 08482 EFG 41969 a

1year. Such amounts shall not reduce, and shall not be included
2in the calculation of, the required State contributions under
3this Article in any future year until the System has received
4payment of contributions pursuant to the Budget Stabilization
5Act.
6    Notwithstanding any other provision of this Section, the
7required State contribution for State fiscal year 2005 and for
8fiscal year 2008 and each fiscal year thereafter through State
9fiscal year 2014, as calculated under this Section and
10certified under Section 14-135.08, shall not exceed an amount
11equal to (i) the amount of the required State contribution that
12would have been calculated under this Section for that fiscal
13year if the System had not received any payments under
14subsection (d) of Section 7.2 of the General Obligation Bond
15Act, minus (ii) the portion of the State's total debt service
16payments for that fiscal year on the bonds issued in fiscal
17year 2003 for the purposes of that Section 7.2, as determined
18and certified by the Comptroller, that is the same as the
19System's portion of the total moneys distributed under
20subsection (d) of Section 7.2 of the General Obligation Bond
21Act. In determining this maximum for State fiscal years 2008
22through 2010, however, the amount referred to in item (i) shall
23be increased, as a percentage of the applicable employee
24payroll, in equal increments calculated from the sum of the
25required State contribution for State fiscal year 2007 plus the
26applicable portion of the State's total debt service payments

 

 

09800HB1154ham005- 23 -LRB098 08482 EFG 41969 a

1for fiscal year 2007 on the bonds issued in fiscal year 2003
2for the purposes of Section 7.2 of the General Obligation Bond
3Act, so that, by State fiscal year 2011, the State is
4contributing at the rate otherwise required under this Section.
5    (f) After the submission of all payments for eligible
6employees from personal services line items in fiscal year 2004
7have been made, the Comptroller shall provide to the System a
8certification of the sum of all fiscal year 2004 expenditures
9for personal services that would have been covered by payments
10to the System under this Section if the provisions of this
11amendatory Act of the 93rd General Assembly had not been
12enacted. Upon receipt of the certification, the System shall
13determine the amount due to the System based on the full rate
14certified by the Board under Section 14-135.08 for fiscal year
152004 in order to meet the State's obligation under this
16Section. The System shall compare this amount due to the amount
17received by the System in fiscal year 2004 through payments
18under this Section and under Section 6z-61 of the State Finance
19Act. If the amount due is more than the amount received, the
20difference shall be termed the "Fiscal Year 2004 Shortfall" for
21purposes of this Section, and the Fiscal Year 2004 Shortfall
22shall be satisfied under Section 1.2 of the State Pension Funds
23Continuing Appropriation Act. If the amount due is less than
24the amount received, the difference shall be termed the "Fiscal
25Year 2004 Overpayment" for purposes of this Section, and the
26Fiscal Year 2004 Overpayment shall be repaid by the System to

 

 

09800HB1154ham005- 24 -LRB098 08482 EFG 41969 a

1the Pension Contribution Fund as soon as practicable after the
2certification.
3    (g) For purposes of determining the required State
4contribution to the System, the value of the System's assets
5shall be equal to the actuarial value of the System's assets,
6which shall be calculated as follows:
7    As of June 30, 2008, the actuarial value of the System's
8assets shall be equal to the market value of the assets as of
9that date. In determining the actuarial value of the System's
10assets for fiscal years after June 30, 2008, any actuarial
11gains or losses from investment return incurred in a fiscal
12year shall be recognized in equal annual amounts over the
135-year period following that fiscal year.
14    (h) For purposes of determining the required State
15contribution to the System for a particular year, the actuarial
16value of assets shall be assumed to earn a rate of return equal
17to the System's actuarially assumed rate of return.
18    (i) After the submission of all payments for eligible
19employees from personal services line items paid from the
20General Revenue Fund in fiscal year 2010 have been made, the
21Comptroller shall provide to the System a certification of the
22sum of all fiscal year 2010 expenditures for personal services
23that would have been covered by payments to the System under
24this Section if the provisions of this amendatory Act of the
2596th General Assembly had not been enacted. Upon receipt of the
26certification, the System shall determine the amount due to the

 

 

09800HB1154ham005- 25 -LRB098 08482 EFG 41969 a

1System based on the full rate certified by the Board under
2Section 14-135.08 for fiscal year 2010 in order to meet the
3State's obligation under this Section. The System shall compare
4this amount due to the amount received by the System in fiscal
5year 2010 through payments under this Section. If the amount
6due is more than the amount received, the difference shall be
7termed the "Fiscal Year 2010 Shortfall" for purposes of this
8Section, and the Fiscal Year 2010 Shortfall shall be satisfied
9under Section 1.2 of the State Pension Funds Continuing
10Appropriation Act. If the amount due is less than the amount
11received, the difference shall be termed the "Fiscal Year 2010
12Overpayment" for purposes of this Section, and the Fiscal Year
132010 Overpayment shall be repaid by the System to the General
14Revenue Fund as soon as practicable after the certification.
15    (j) After the submission of all payments for eligible
16employees from personal services line items paid from the
17General Revenue Fund in fiscal year 2011 have been made, the
18Comptroller shall provide to the System a certification of the
19sum of all fiscal year 2011 expenditures for personal services
20that would have been covered by payments to the System under
21this Section if the provisions of this amendatory Act of the
2296th General Assembly had not been enacted. Upon receipt of the
23certification, the System shall determine the amount due to the
24System based on the full rate certified by the Board under
25Section 14-135.08 for fiscal year 2011 in order to meet the
26State's obligation under this Section. The System shall compare

 

 

09800HB1154ham005- 26 -LRB098 08482 EFG 41969 a

1this amount due to the amount received by the System in fiscal
2year 2011 through payments under this Section. If the amount
3due is more than the amount received, the difference shall be
4termed the "Fiscal Year 2011 Shortfall" for purposes of this
5Section, and the Fiscal Year 2011 Shortfall shall be satisfied
6under Section 1.2 of the State Pension Funds Continuing
7Appropriation Act. If the amount due is less than the amount
8received, the difference shall be termed the "Fiscal Year 2011
9Overpayment" for purposes of this Section, and the Fiscal Year
102011 Overpayment shall be repaid by the System to the General
11Revenue Fund as soon as practicable after the certification.
12    (k) For fiscal years 2012 and 2013 only, after the
13submission of all payments for eligible employees from personal
14services line items paid from the General Revenue Fund in the
15fiscal year have been made, the Comptroller shall provide to
16the System a certification of the sum of all expenditures in
17the fiscal year for personal services. Upon receipt of the
18certification, the System shall determine the amount due to the
19System based on the full rate certified by the Board under
20Section 14-135.08 for the fiscal year in order to meet the
21State's obligation under this Section. The System shall compare
22this amount due to the amount received by the System for the
23fiscal year. If the amount due is more than the amount
24received, the difference shall be termed the "Prior Fiscal Year
25Shortfall" for purposes of this Section, and the Prior Fiscal
26Year Shortfall shall be satisfied under Section 1.2 of the

 

 

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1State Pension Funds Continuing Appropriation Act. If the amount
2due is less than the amount received, the difference shall be
3termed the "Prior Fiscal Year Overpayment" for purposes of this
4Section, and the Prior Fiscal Year Overpayment shall be repaid
5by the System to the General Revenue Fund as soon as
6practicable after the certification.
7(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
896-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.
91-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
10eff. 6-30-12.)
 
11    (40 ILCS 5/14-132)  (from Ch. 108 1/2, par. 14-132)
12    Sec. 14-132. Obligations of State; funding guarantee.
13    (a) The payment of the required department contributions,
14all allowances, annuities, benefits granted under this
15Article, and all expenses of administration of the system are
16obligations of the State of Illinois to the extent specified in
17this Article.
18    (b) All income of the system shall be credited to a
19separate account for this system in the State treasury and
20shall be used to pay allowances, annuities, benefits and
21administration expense.
22    (c) Pursuant to Article XIII, Section 5 of the 1970
23Constitution of the State of Illinois, beginning on July 1,
242013, the State shall, as a retirement benefit to each
25participant and annuitant of the System be contractually

 

 

09800HB1154ham005- 28 -LRB098 08482 EFG 41969 a

1obligated to the System (as a fiduciary and trustee of the
2participants and annuitants) to pay the annual required State
3contribution, as determined by the Board of the System using
4generally accepted actuarial principles, as is necessary to
5bring the total assets of the System up to 100% of the total
6actuarial liabilities of the System by the end of State fiscal
7year 2045. As a further retirement benefit and contractual
8obligation, each fiscal year, the State shall pay to each
9designated retirement system the annual required State
10contribution certified by the Board for that fiscal year.
11Payments of the annual required State contribution for each
12fiscal year shall be made in equal monthly installments.
13Additionally, beginning in fiscal year 2014, State transfers to
14the Pension Stabilization Fund pursuant to Section 20 of the
15Budget Stabilization Act and payments to the System pursuant to
16Section 25 of the Budget Stabilization Act shall be further
17retirement benefits and contractual obligations. The transfers
18and payments prescribed in Sections 20 and 25 of the Budget
19Stabilization Act shall not be used by the retirement system
20when calculation any pension payment until the System has
21reached a funded level of 100%. This Section and the security
22it provides to participants and annuitants is intended to be,
23and is, a contractual right that is part of the pension
24benefits provided to the participants and annuitants.
25Notwithstanding anything to the contrary in the Court of Claims
26Act or any other law, a designated retirement system has the

 

 

09800HB1154ham005- 29 -LRB098 08482 EFG 41969 a

1exclusive right to and shall bring a mandamus action in the
2Circuit Court of Sangamon County against the State to compel
3the State to make any installment of the annual required State
4contribution required by this Section, irrespective of other
5remedies that may be available to the System. Each member or
6annuitant of the System has the right to in any judicial
7district in which the System maintains an office if the System
8fails to bring an action specified in this Section,
9irrespective of other remedies that may be available to the
10member or annuitant. In making these determinations, the
11required State contribution shall be calculated each year as a
12level percentage of payroll over the years remaining to and
13including fiscal year 2045 and shall be determined under the
14projected unit credit actuarial cost method.
15(Source: P.A. 80-841.)
 
16    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
17    Sec. 15-155. Employer contributions.
18    (a) The State of Illinois shall make contributions by
19appropriations of amounts which, together with the other
20employer contributions from trust, federal, and other funds,
21employee contributions, income from investments, and other
22income of this System, will be sufficient to meet the cost of
23maintaining and administering the System on a 100% 90% funded
24basis in accordance with actuarial recommendations.
25    The Board shall determine the amount of State contributions

 

 

09800HB1154ham005- 30 -LRB098 08482 EFG 41969 a

1required for each fiscal year on the basis of the actuarial
2tables and other assumptions adopted by the Board and the
3recommendations of the actuary, using the formula in subsection
4(a-1).
5    (a-1) For State fiscal years 2015 through 2045, the minimum
6contribution to the System to be made by the State for each
7fiscal year shall be an amount determined by the System to be
8sufficient to bring the total assets of the System up to 100%
9of the total actuarial liabilities of the System by the end of
10State fiscal year 2045. In making these determinations, the
11required State contribution shall be calculated each year as a
12level percentage of payroll over the years remaining to and
13including fiscal year 2045 and shall be determined under the
14projected unit credit actuarial cost method.
15    For State fiscal years 2012 through 2014 2045, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18sufficient to bring the total assets of the System up to 90% of
19the total actuarial liabilities of the System by the end of
20State fiscal year 2045. In making these determinations, the
21required State contribution shall be calculated each year as a
22level percentage of payroll over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    For State fiscal years 1996 through 2005, the State
26contribution to the System, as a percentage of the applicable

 

 

09800HB1154ham005- 31 -LRB098 08482 EFG 41969 a

1employee payroll, shall be increased in equal annual increments
2so that by State fiscal year 2011, the State is contributing at
3the rate required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2006 is
6$166,641,900.
7    Notwithstanding any other provision of this Article, the
8total required State contribution for State fiscal year 2007 is
9$252,064,100.
10    For each of State fiscal years 2008 through 2009, the State
11contribution to the System, as a percentage of the applicable
12employee payroll, shall be increased in equal annual increments
13from the required State contribution for State fiscal year
142007, so that by State fiscal year 2011, the State is
15contributing at the rate otherwise required under this Section.
16    Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2010 is
18$702,514,000 and shall be made from the State Pensions Fund and
19proceeds of bonds sold in fiscal year 2010 pursuant to Section
207.2 of the General Obligation Bond Act, less (i) the pro rata
21share of bond sale expenses determined by the System's share of
22total bond proceeds, (ii) any amounts received from the General
23Revenue Fund in fiscal year 2010, (iii) any reduction in bond
24proceeds due to the issuance of discounted bonds, if
25applicable.
26    Notwithstanding any other provision of this Article, the

 

 

09800HB1154ham005- 32 -LRB098 08482 EFG 41969 a

1total required State contribution for State fiscal year 2011 is
2the amount recertified by the System on or before April 1, 2011
3pursuant to Section 15-165 and shall be made from the State
4Pensions Fund and proceeds of bonds sold in fiscal year 2011
5pursuant to Section 7.2 of the General Obligation Bond Act,
6less (i) the pro rata share of bond sale expenses determined by
7the System's share of total bond proceeds, (ii) any amounts
8received from the General Revenue Fund in fiscal year 2011, and
9(iii) any reduction in bond proceeds due to the issuance of
10discounted bonds, if applicable.
11    Beginning in State fiscal year 2046, the minimum State
12contribution for each fiscal year shall be the amount needed to
13maintain the total assets of the System at 90% of the total
14actuarial liabilities of the System.
15    Amounts received by the System pursuant to Section 25 of
16the Budget Stabilization Act or Section 8.12 of the State
17Finance Act in any fiscal year do not reduce and do not
18constitute payment of any portion of the minimum State
19contribution required under this Article in that fiscal year.
20Such amounts shall not reduce, and shall not be included in the
21calculation of, the required State contributions under this
22Article in any future year until the System has reached a
23funding ratio of at least 100% 90%. A reference in this Article
24to the "required State contribution" or any substantially
25similar term does not include or apply to any amounts payable
26to the System under Section 25 of the Budget Stabilization Act.

 

 

09800HB1154ham005- 33 -LRB098 08482 EFG 41969 a

1    Notwithstanding any other provision of this Code or the
2Budget Stabilization Act, amounts transferred to the System
3pursuant to the Budget Stabilization Act after the effective
4date of this amendatory Act of the 98th General Assembly do not
5reduce and do not constitute payment of any portion of the
6required State contribution under this Article in that fiscal
7year. Such amounts shall not reduce, and shall not be included
8in the calculation of, the required State contributions under
9this Article in any future year until the System has received
10payment of contributions pursuant to the Budget Stabilization
11Act.
12    Notwithstanding any other provision of this Section, the
13required State contribution for State fiscal year 2005 and for
14fiscal year 2008 and each fiscal year thereafter through State
15fiscal year 2014, as calculated under this Section and
16certified under Section 15-165, shall not exceed an amount
17equal to (i) the amount of the required State contribution that
18would have been calculated under this Section for that fiscal
19year if the System had not received any payments under
20subsection (d) of Section 7.2 of the General Obligation Bond
21Act, minus (ii) the portion of the State's total debt service
22payments for that fiscal year on the bonds issued in fiscal
23year 2003 for the purposes of that Section 7.2, as determined
24and certified by the Comptroller, that is the same as the
25System's portion of the total moneys distributed under
26subsection (d) of Section 7.2 of the General Obligation Bond

 

 

09800HB1154ham005- 34 -LRB098 08482 EFG 41969 a

1Act. In determining this maximum for State fiscal years 2008
2through 2010, however, the amount referred to in item (i) shall
3be increased, as a percentage of the applicable employee
4payroll, in equal increments calculated from the sum of the
5required State contribution for State fiscal year 2007 plus the
6applicable portion of the State's total debt service payments
7for fiscal year 2007 on the bonds issued in fiscal year 2003
8for the purposes of Section 7.2 of the General Obligation Bond
9Act, so that, by State fiscal year 2011, the State is
10contributing at the rate otherwise required under this Section.
11    (b) If an employee is paid from trust or federal funds, the
12employer shall pay to the Board contributions from those funds
13which are sufficient to cover the accruing normal costs on
14behalf of the employee. However, universities having employees
15who are compensated out of local auxiliary funds, income funds,
16or service enterprise funds are not required to pay such
17contributions on behalf of those employees. The local auxiliary
18funds, income funds, and service enterprise funds of
19universities shall not be considered trust funds for the
20purpose of this Article, but funds of alumni associations,
21foundations, and athletic associations which are affiliated
22with the universities included as employers under this Article
23and other employers which do not receive State appropriations
24are considered to be trust funds for the purpose of this
25Article.
26    (b-1) The City of Urbana and the City of Champaign shall

 

 

09800HB1154ham005- 35 -LRB098 08482 EFG 41969 a

1each make employer contributions to this System for their
2respective firefighter employees who participate in this
3System pursuant to subsection (h) of Section 15-107. The rate
4of contributions to be made by those municipalities shall be
5determined annually by the Board on the basis of the actuarial
6assumptions adopted by the Board and the recommendations of the
7actuary, and shall be expressed as a percentage of salary for
8each such employee. The Board shall certify the rate to the
9affected municipalities as soon as may be practical. The
10employer contributions required under this subsection shall be
11remitted by the municipality to the System at the same time and
12in the same manner as employee contributions.
13    (c) Through State fiscal year 1995: The total employer
14contribution shall be apportioned among the various funds of
15the State and other employers, whether trust, federal, or other
16funds, in accordance with actuarial procedures approved by the
17Board. State of Illinois contributions for employers receiving
18State appropriations for personal services shall be payable
19from appropriations made to the employers or to the System. The
20contributions for Class I community colleges covering earnings
21other than those paid from trust and federal funds, shall be
22payable solely from appropriations to the Illinois Community
23College Board or the System for employer contributions.
24    (d) Beginning in State fiscal year 1996, the required State
25contributions to the System shall be appropriated directly to
26the System and shall be payable through vouchers issued in

 

 

09800HB1154ham005- 36 -LRB098 08482 EFG 41969 a

1accordance with subsection (c) of Section 15-165, except as
2provided in subsection (g).
3    (e) The State Comptroller shall draw warrants payable to
4the System upon proper certification by the System or by the
5employer in accordance with the appropriation laws and this
6Code.
7    (f) Normal costs under this Section means liability for
8pensions and other benefits which accrues to the System because
9of the credits earned for service rendered by the participants
10during the fiscal year and expenses of administering the
11System, but shall not include the principal of or any
12redemption premium or interest on any bonds issued by the Board
13or any expenses incurred or deposits required in connection
14therewith.
15    (g) If the amount of a participant's earnings for any
16academic year used to determine the final rate of earnings,
17determined on a full-time equivalent basis, exceeds the amount
18of his or her earnings with the same employer for the previous
19academic year, determined on a full-time equivalent basis, by
20more than 6%, the participant's employer shall pay to the
21System, in addition to all other payments required under this
22Section and in accordance with guidelines established by the
23System, the present value of the increase in benefits resulting
24from the portion of the increase in earnings that is in excess
25of 6%. This present value shall be computed by the System on
26the basis of the actuarial assumptions and tables used in the

 

 

09800HB1154ham005- 37 -LRB098 08482 EFG 41969 a

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

 

 

09800HB1154ham005- 38 -LRB098 08482 EFG 41969 a

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

 

 

09800HB1154ham005- 39 -LRB098 08482 EFG 41969 a

1academic instruction computed using the participant's current
2salary rate and work schedule; and (ii) in the case of
3overtime, the overtime was necessary for the educational
4mission.
5    When assessing payment for any amount due under subsection
6(g), the System shall exclude any earnings increase resulting
7from (i) a promotion for which the employee moves from one
8classification to a higher classification under the State
9Universities Civil Service System, (ii) a promotion in academic
10rank for a tenured or tenure-track faculty position, or (iii) a
11promotion that the Illinois Community College Board has
12recommended in accordance with subsection (k) of this Section.
13These earnings increases shall be excluded only if the
14promotion is to a position that has existed and been filled by
15a member for no less than one complete academic year and the
16earnings increase as a result of the promotion is an increase
17that results in an amount no greater than the average salary
18paid for other similar positions.
19    (i) When assessing payment for any amount due under
20subsection (g), the System shall exclude any salary increase
21described in subsection (h) of this Section given on or after
22July 1, 2011 but before July 1, 2014 under a contract or
23collective bargaining agreement entered into, amended, or
24renewed on or after June 1, 2005 but before July 1, 2011.
25Notwithstanding any other provision of this Section, any
26payments made or salary increases given after June 30, 2014

 

 

09800HB1154ham005- 40 -LRB098 08482 EFG 41969 a

1shall be used in assessing payment for any amount due under
2subsection (g) of this Section.
3    (j) The System shall prepare a report and file copies of
4the report with the Governor and the General Assembly by
5January 1, 2007 that contains all of the following information:
6        (1) The number of recalculations required by the
7    changes made to this Section by Public Act 94-1057 for each
8    employer.
9        (2) The dollar amount by which each employer's
10    contribution to the System was changed due to
11    recalculations required by Public Act 94-1057.
12        (3) The total amount the System received from each
13    employer as a result of the changes made to this Section by
14    Public Act 94-4.
15        (4) The increase in the required State contribution
16    resulting from the changes made to this Section by Public
17    Act 94-1057.
18    (k) The Illinois Community College Board shall adopt rules
19for recommending lists of promotional positions submitted to
20the Board by community colleges and for reviewing the
21promotional lists on an annual basis. When recommending
22promotional lists, the Board shall consider the similarity of
23the positions submitted to those positions recognized for State
24universities by the State Universities Civil Service System.
25The Illinois Community College Board shall file a copy of its
26findings with the System. The System shall consider the

 

 

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1findings of the Illinois Community College Board when making
2determinations under this Section. The System shall not exclude
3any earnings increases resulting from a promotion when the
4promotion was not submitted by a community college. Nothing in
5this subsection (k) shall require any community college to
6submit any information to the Community College Board.
7    (l) For purposes of determining the required State
8contribution to the System, the value of the System's assets
9shall be equal to the actuarial value of the System's assets,
10which shall be calculated as follows:
11    As of June 30, 2008, the actuarial value of the System's
12assets shall be equal to the market value of the assets as of
13that date. In determining the actuarial value of the System's
14assets for fiscal years after June 30, 2008, any actuarial
15gains or losses from investment return incurred in a fiscal
16year shall be recognized in equal annual amounts over the
175-year period following that fiscal year.
18    (m) For purposes of determining the required State
19contribution to the system for a particular year, the actuarial
20value of assets shall be assumed to earn a rate of return equal
21to the system's actuarially assumed rate of return.
22(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
247-13-12; revised 10-17-12.)
 
25    (40 ILCS 5/15-156)  (from Ch. 108 1/2, par. 15-156)

 

 

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1    Sec. 15-156. Obligations of State; funding guarantees.
2    (a) The payment of (1) the required State contributions,
3(2) all benefits granted under this system and (3) all expenses
4in connection with the administration and operation thereof are
5obligations of the State of Illinois to the extent specified in
6this Article. The accumulated employee normal, additional and
7survivors insurance contributions credited to the accounts of
8active and inactive participants shall not be used to pay the
9State's share of the obligations.
10    (c) Pursuant to Article XIII, Section 5 of the 1970
11Constitution of the State of Illinois, beginning on July 1,
122013, the State shall, as a retirement benefit to each
13participant and annuitant of the System be contractually
14obligated to the System (as a fiduciary and trustee of the
15participants and annuitants) to pay the annual required State
16contribution, as determined by the Board of the System using
17generally accepted actuarial principles, as is necessary to
18bring the total assets of the System up to 100% of the total
19actuarial liabilities of the System by the end of State fiscal
20year 2045. As a further retirement benefit and contractual
21obligation, each fiscal year, the State shall pay to each
22designated retirement system the annual required State
23contribution certified by the Board for that fiscal year.
24Payments of the annual required State contribution for each
25fiscal year shall be made in equal monthly installments.
26Additionally, beginning in fiscal year 2014, State transfers to

 

 

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1the Pension Stabilization Fund pursuant to Section 20 of the
2Budget Stabilization Act and payments to the System pursuant to
3Section 25 of the Budget Stabilization Act shall be further
4retirement benefits and contractual obligations. The transfers
5and payments prescribed in Sections 20 and 25 of the Budget
6Stabilization Act shall not be used by the retirement system
7when calculation any pension payment until the System has
8reached a funded level of 100%. This Section and the security
9it provides to participants and annuitants is intended to be,
10and is, a contractual right that is part of the pension
11benefits provided to the participants and annuitants.
12Notwithstanding anything to the contrary in the Court of Claims
13Act or any other law, a designated retirement system has the
14exclusive right to and shall bring a mandamus action in the
15Circuit Court of Champaign County against the State to compel
16the State to make any installment of the annual required State
17contribution required by this Section, irrespective of other
18remedies that may be available to the System. Each member or
19annuitant of the System has the right to in any judicial
20district in which the System maintains an office if the System
21fails to bring an action specified in this Section,
22irrespective of other remedies that may be available to the
23member or annuitant. In making these determinations, the
24required State contribution shall be calculated each year as a
25level percentage of payroll over the years remaining to and
26including fiscal year 2045 and shall be determined under the

 

 

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1projected unit credit actuarial cost method.
2(Source: P.A. 83-1440.)
 
3    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
4    Sec. 16-158. Contributions by State and other employing
5units.
6    (a) The State shall make contributions to the System by
7means of appropriations from the Common School Fund and other
8State funds of amounts which, together with other employer
9contributions, employee contributions, investment income, and
10other income, will be sufficient to meet the cost of
11maintaining and administering the System on a 100% 90% funded
12basis in accordance with actuarial recommendations.
13    The Board shall determine the amount of State contributions
14required for each fiscal year on the basis of the actuarial
15tables and other assumptions adopted by the Board and the
16recommendations of the actuary, using the formula in subsection
17(b-3).
18    (a-1) Annually, on or before November 15 until November 15,
192011, the Board shall certify to the Governor the amount of the
20required State contribution for the coming fiscal year. The
21certification under this subsection (a-1) shall include a copy
22of the actuarial recommendations upon which it is based and
23shall specifically identify the System's projected State
24normal cost for that fiscal year.
25    On or before May 1, 2004, the Board shall recalculate and

 

 

09800HB1154ham005- 45 -LRB098 08482 EFG 41969 a

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

 

 

09800HB1154ham005- 46 -LRB098 08482 EFG 41969 a

1assumptions that the Board must consider before finalizing its
2certification of the required State contributions. On or before
3January 15, 2013 and each January 15 thereafter, the Board
4shall certify to the Governor and the General Assembly the
5amount of the required State contribution for the next fiscal
6year. The Board's certification must note any deviations from
7the State Actuary's recommended changes, the reason or reasons
8for not following the State Actuary's recommended changes, and
9the fiscal impact of not following the State Actuary's
10recommended changes on the required State contribution.
11    (b) Through State fiscal year 1995, the State contributions
12shall be paid to the System in accordance with Section 18-7 of
13the School Code.
14    (b-1) Beginning in State fiscal year 1996, on the 15th day
15of each month, or as soon thereafter as may be practicable, the
16Board shall submit vouchers for payment of State contributions
17to the System, in a total monthly amount of one-twelfth of the
18required annual State contribution certified under subsection
19(a-1). From the effective date of this amendatory Act of the
2093rd General Assembly through June 30, 2004, the Board shall
21not submit vouchers for the remainder of fiscal year 2004 in
22excess of the fiscal year 2004 certified contribution amount
23determined under this Section after taking into consideration
24the transfer to the System under subsection (a) of Section
256z-61 of the State Finance Act. These vouchers shall be paid by
26the State Comptroller and Treasurer by warrants drawn on the

 

 

09800HB1154ham005- 47 -LRB098 08482 EFG 41969 a

1funds appropriated to the System for that fiscal year.
2    If in any month the amount remaining unexpended from all
3other appropriations to the System for the applicable fiscal
4year (including the appropriations to the System under Section
58.12 of the State Finance Act and Section 1 of the State
6Pension Funds Continuing Appropriation Act) is less than the
7amount lawfully vouchered under this subsection, the
8difference shall be paid from the Common School Fund under the
9continuing appropriation authority provided in Section 1.1 of
10the State Pension Funds Continuing Appropriation Act.
11    (b-2) Allocations from the Common School Fund apportioned
12to school districts not coming under this System shall not be
13diminished or affected by the provisions of this Article.
14    (b-3) For State fiscal years 2015 through 2045, the minimum
15contribution to the System to be made by the State for each
16fiscal year shall be an amount determined by the System to be
17sufficient to bring the total assets of the System up to 100%
18of the total actuarial liabilities of the System by the end of
19State fiscal year 2045. In making these determinations, the
20required State contribution shall be calculated each year as a
21level percentage of payroll over the years remaining to and
22including fiscal year 2045 and shall be determined under the
23projected unit credit actuarial cost method.
24    For State fiscal years 2012 through 2014 2045, the minimum
25contribution to the System to be made by the State for each
26fiscal year shall be an amount determined by the System to be

 

 

09800HB1154ham005- 48 -LRB098 08482 EFG 41969 a

1sufficient to bring the total assets of the System up to 90% of
2the total actuarial liabilities of the System by the end of
3State fiscal year 2045. In making these determinations, the
4required State contribution shall be calculated each year as a
5level percentage of payroll over the years remaining to and
6including fiscal year 2045 and shall be determined under the
7projected unit credit actuarial cost method.
8    For State fiscal years 1996 through 2005, the State
9contribution to the System, as a percentage of the applicable
10employee payroll, shall be increased in equal annual increments
11so that by State fiscal year 2011, the State is contributing at
12the rate required under this Section; except that in the
13following specified State fiscal years, the State contribution
14to the System shall not be less than the following indicated
15percentages of the applicable employee payroll, even if the
16indicated percentage will produce a State contribution in
17excess of the amount otherwise required under this subsection
18and subsection (a), and notwithstanding any contrary
19certification made under subsection (a-1) before the effective
20date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
21in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
222003; and 13.56% in FY 2004.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2006 is
25$534,627,700.
26    Notwithstanding any other provision of this Article, the

 

 

09800HB1154ham005- 49 -LRB098 08482 EFG 41969 a

1total required State contribution for State fiscal year 2007 is
2$738,014,500.
3    For each of State fiscal years 2008 through 2009, the State
4contribution to the System, as a percentage of the applicable
5employee payroll, shall be increased in equal annual increments
6from the required State contribution for State fiscal year
72007, so that by State fiscal year 2011, the State is
8contributing at the rate otherwise required under this Section.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2010 is
11$2,089,268,000 and shall be made from the proceeds of bonds
12sold in fiscal year 2010 pursuant to Section 7.2 of the General
13Obligation Bond Act, less (i) the pro rata share of bond sale
14expenses determined by the System's share of total bond
15proceeds, (ii) any amounts received from the Common School Fund
16in fiscal year 2010, and (iii) any reduction in bond proceeds
17due to the issuance of discounted bonds, if applicable.
18    Notwithstanding any other provision of this Article, the
19total required State contribution for State fiscal year 2011 is
20the amount recertified by the System on or before April 1, 2011
21pursuant to subsection (a-1) of this Section and shall be made
22from the proceeds of bonds sold in fiscal year 2011 pursuant to
23Section 7.2 of the General Obligation Bond Act, less (i) the
24pro rata share of bond sale expenses determined by the System's
25share of total bond proceeds, (ii) any amounts received from
26the Common School Fund in fiscal year 2011, and (iii) any

 

 

09800HB1154ham005- 50 -LRB098 08482 EFG 41969 a

1reduction in bond proceeds due to the issuance of discounted
2bonds, if applicable. This amount shall include, in addition to
3the amount certified by the System, an amount necessary to meet
4employer contributions required by the State as an employer
5under paragraph (e) of this Section, which may also be used by
6the System for contributions required by paragraph (a) of
7Section 16-127.
8    Beginning in State fiscal year 2046, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 90% of the total
11actuarial liabilities of the System.
12    Amounts received by the System pursuant to Section 25 of
13the Budget Stabilization Act or Section 8.12 of the State
14Finance Act in any fiscal year do not reduce and do not
15constitute payment of any portion of the minimum State
16contribution required under this Article in that fiscal year.
17Such amounts shall not reduce, and shall not be included in the
18calculation of, the required State contributions under this
19Article in any future year until the System has reached a
20funding ratio of at least 100% 90%. A reference in this Article
21to the "required State contribution" or any substantially
22similar term does not include or apply to any amounts payable
23to the System under Section 25 of the Budget Stabilization Act.
24    Notwithstanding any other provision of this Code or the
25Budget Stabilization Act, amounts transferred to the System
26pursuant to the Budget Stabilization Act after the effective

 

 

09800HB1154ham005- 51 -LRB098 08482 EFG 41969 a

1date of this amendatory Act of the 98th General Assembly do not
2reduce and do not constitute payment of any portion of the
3required State contribution under this Article in that fiscal
4year. Such amounts shall not reduce, and shall not be included
5in the calculation of, the required State contributions under
6this Article in any future year until the System has received
7payment of contributions pursuant to the Budget Stabilization
8Act.
9    Notwithstanding any other provision of this Section, the
10required State contribution for State fiscal year 2005 and for
11fiscal year 2008 and each fiscal year thereafter through State
12fiscal year 2014, as calculated under this Section and
13certified under subsection (a-1), shall not exceed an amount
14equal to (i) the amount of the required State contribution that
15would have been calculated under this Section for that fiscal
16year if the System had not received any payments under
17subsection (d) of Section 7.2 of the General Obligation Bond
18Act, minus (ii) the portion of the State's total debt service
19payments for that fiscal year on the bonds issued in fiscal
20year 2003 for the purposes of that Section 7.2, as determined
21and certified by the Comptroller, that is the same as the
22System's portion of the total moneys distributed under
23subsection (d) of Section 7.2 of the General Obligation Bond
24Act. In determining this maximum for State fiscal years 2008
25through 2010, however, the amount referred to in item (i) shall
26be increased, as a percentage of the applicable employee

 

 

09800HB1154ham005- 52 -LRB098 08482 EFG 41969 a

1payroll, in equal increments calculated from the sum of the
2required State contribution for State fiscal year 2007 plus the
3applicable portion of the State's total debt service payments
4for fiscal year 2007 on the bonds issued in fiscal year 2003
5for the purposes of Section 7.2 of the General Obligation Bond
6Act, so that, by State fiscal year 2011, the State is
7contributing at the rate otherwise required under this Section.
8    (c) Payment of the required State contributions and of all
9pensions, retirement annuities, death benefits, refunds, and
10other benefits granted under or assumed by this System, and all
11expenses in connection with the administration and operation
12thereof, are obligations of the State.
13    If members are paid from special trust or federal funds
14which are administered by the employing unit, whether school
15district or other unit, the employing unit shall pay to the
16System from such funds the full accruing retirement costs based
17upon that service, as determined by the System. Employer
18contributions, based on salary paid to members from federal
19funds, may be forwarded by the distributing agency of the State
20of Illinois to the System prior to allocation, in an amount
21determined in accordance with guidelines established by such
22agency and the System.
23    (d) Effective July 1, 1986, any employer of a teacher as
24defined in paragraph (8) of Section 16-106 shall pay the
25employer's normal cost of benefits based upon the teacher's
26service, in addition to employee contributions, as determined

 

 

09800HB1154ham005- 53 -LRB098 08482 EFG 41969 a

1by the System. Such employer contributions shall be forwarded
2monthly in accordance with guidelines established by the
3System.
4    However, with respect to benefits granted under Section
516-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
6of Section 16-106, the employer's contribution shall be 12%
7(rather than 20%) of the member's highest annual salary rate
8for each year of creditable service granted, and the employer
9shall also pay the required employee contribution on behalf of
10the teacher. For the purposes of Sections 16-133.4 and
1116-133.5, a teacher as defined in paragraph (8) of Section
1216-106 who is serving in that capacity while on leave of
13absence from another employer under this Article shall not be
14considered an employee of the employer from which the teacher
15is on leave.
16    (e) Beginning July 1, 1998, every employer of a teacher
17shall pay to the System an employer contribution computed as
18follows:
19        (1) Beginning July 1, 1998 through June 30, 1999, the
20    employer contribution shall be equal to 0.3% of each
21    teacher's salary.
22        (2) Beginning July 1, 1999 and thereafter, the employer
23    contribution shall be equal to 0.58% of each teacher's
24    salary.
25The school district or other employing unit may pay these
26employer contributions out of any source of funding available

 

 

09800HB1154ham005- 54 -LRB098 08482 EFG 41969 a

1for that purpose and shall forward the contributions to the
2System on the schedule established for the payment of member
3contributions.
4    These employer contributions are intended to offset a
5portion of the cost to the System of the increases in
6retirement benefits resulting from this amendatory Act of 1998.
7    Each employer of teachers is entitled to a credit against
8the contributions required under this subsection (e) with
9respect to salaries paid to teachers for the period January 1,
102002 through June 30, 2003, equal to the amount paid by that
11employer under subsection (a-5) of Section 6.6 of the State
12Employees Group Insurance Act of 1971 with respect to salaries
13paid to teachers for that period.
14    The additional 1% employee contribution required under
15Section 16-152 by this amendatory Act of 1998 is the
16responsibility of the teacher and not the teacher's employer,
17unless the employer agrees, through collective bargaining or
18otherwise, to make the contribution on behalf of the teacher.
19    If an employer is required by a contract in effect on May
201, 1998 between the employer and an employee organization to
21pay, on behalf of all its full-time employees covered by this
22Article, all mandatory employee contributions required under
23this Article, then the employer shall be excused from paying
24the employer contribution required under this subsection (e)
25for the balance of the term of that contract. The employer and
26the employee organization shall jointly certify to the System

 

 

09800HB1154ham005- 55 -LRB098 08482 EFG 41969 a

1the existence of the contractual requirement, in such form as
2the System may prescribe. This exclusion shall cease upon the
3termination, extension, or renewal of the contract at any time
4after May 1, 1998.
5    (f) If the amount of a teacher's salary for any school year
6used to determine final average salary exceeds the member's
7annual full-time salary rate with the same employer for the
8previous school year by more than 6%, the teacher's employer
9shall pay to the System, in addition to all other payments
10required under this Section and in accordance with guidelines
11established by the System, the present value of the increase in
12benefits resulting from the portion of the increase in salary
13that is in excess of 6%. This present value shall be computed
14by the System on the basis of the actuarial assumptions and
15tables used in the most recent actuarial valuation of the
16System that is available at the time of the computation. If a
17teacher's salary for the 2005-2006 school year is used to
18determine final average salary under this subsection (f), then
19the changes made to this subsection (f) by Public Act 94-1057
20shall apply in calculating whether the increase in his or her
21salary is in excess of 6%. For the purposes of this Section,
22change in employment under Section 10-21.12 of the School Code
23on or after June 1, 2005 shall constitute a change in employer.
24The System may require the employer to provide any pertinent
25information or documentation. The changes made to this
26subsection (f) by this amendatory Act of the 94th General

 

 

09800HB1154ham005- 56 -LRB098 08482 EFG 41969 a

1Assembly apply without regard to whether the teacher was in
2service on or after its effective date.
3    Whenever it determines that a payment is or may be required
4under this subsection, the System shall calculate the amount of
5the payment and bill the employer for that amount. The bill
6shall specify the calculations used to determine the amount
7due. If the employer disputes the amount of the bill, it may,
8within 30 days after receipt of the bill, apply to the System
9in writing for a recalculation. The application must specify in
10detail the grounds of the dispute and, if the employer asserts
11that the calculation is subject to subsection (g) or (h) of
12this Section, must include an affidavit setting forth and
13attesting to all facts within the employer's knowledge that are
14pertinent to the applicability of that subsection. Upon
15receiving a timely application for recalculation, the System
16shall review the application and, if appropriate, recalculate
17the amount due.
18    The employer contributions required under this subsection
19(f) may be paid in the form of a lump sum within 90 days after
20receipt of the bill. If the employer contributions are not paid
21within 90 days after receipt of the bill, then interest will be
22charged at a rate equal to the System's annual actuarially
23assumed rate of return on investment compounded annually from
24the 91st day after receipt of the bill. Payments must be
25concluded within 3 years after the employer's receipt of the
26bill.

 

 

09800HB1154ham005- 57 -LRB098 08482 EFG 41969 a

1    (g) This subsection (g) applies only to payments made or
2salary increases given on or after June 1, 2005 but before July
31, 2011. The changes made by Public Act 94-1057 shall not
4require the System to refund any payments received before July
531, 2006 (the effective date of Public Act 94-1057).
6    When assessing payment for any amount due under subsection
7(f), the System shall exclude salary increases paid to teachers
8under contracts or collective bargaining agreements entered
9into, amended, or renewed before June 1, 2005.
10    When assessing payment for any amount due under subsection
11(f), the System shall exclude salary increases paid to a
12teacher at a time when the teacher is 10 or more years from
13retirement eligibility under Section 16-132 or 16-133.2.
14    When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases resulting from
16overload work, including summer school, when the school
17district has certified to the System, and the System has
18approved the certification, that (i) the overload work is for
19the sole purpose of classroom instruction in excess of the
20standard number of classes for a full-time teacher in a school
21district during a school year and (ii) the salary increases are
22equal to or less than the rate of pay for classroom instruction
23computed on the teacher's current salary and work schedule.
24    When assessing payment for any amount due under subsection
25(f), the System shall exclude a salary increase resulting from
26a promotion (i) for which the employee is required to hold a

 

 

09800HB1154ham005- 58 -LRB098 08482 EFG 41969 a

1certificate or supervisory endorsement issued by the State
2Teacher Certification Board that is a different certification
3or supervisory endorsement than is required for the teacher's
4previous position and (ii) to a position that has existed and
5been filled by a member for no less than one complete academic
6year and the salary increase from the promotion is an increase
7that results in an amount no greater than the lesser of the
8average salary paid for other similar positions in the district
9requiring the same certification or the amount stipulated in
10the collective bargaining agreement for a similar position
11requiring the same certification.
12    When assessing payment for any amount due under subsection
13(f), the System shall exclude any payment to the teacher from
14the State of Illinois or the State Board of Education over
15which the employer does not have discretion, notwithstanding
16that the payment is included in the computation of final
17average salary.
18    (h) When assessing payment for any amount due under
19subsection (f), the System shall exclude any salary increase
20described in subsection (g) of this Section given on or after
21July 1, 2011 but before July 1, 2014 under a contract or
22collective bargaining agreement entered into, amended, or
23renewed on or after June 1, 2005 but before July 1, 2011.
24Notwithstanding any other provision of this Section, any
25payments made or salary increases given after June 30, 2014
26shall be used in assessing payment for any amount due under

 

 

09800HB1154ham005- 59 -LRB098 08482 EFG 41969 a

1subsection (f) of this Section.
2    (i) The System shall prepare a report and file copies of
3the report with the Governor and the General Assembly by
4January 1, 2007 that contains all of the following information:
5        (1) The number of recalculations required by the
6    changes made to this Section by Public Act 94-1057 for each
7    employer.
8        (2) The dollar amount by which each employer's
9    contribution to the System was changed due to
10    recalculations required by Public Act 94-1057.
11        (3) The total amount the System received from each
12    employer as a result of the changes made to this Section by
13    Public Act 94-4.
14        (4) The increase in the required State contribution
15    resulting from the changes made to this Section by Public
16    Act 94-1057.
17    (j) For purposes of determining the required State
18contribution to the System, the value of the System's assets
19shall be equal to the actuarial value of the System's assets,
20which shall be calculated as follows:
21    As of June 30, 2008, the actuarial value of the System's
22assets shall be equal to the market value of the assets as of
23that date. In determining the actuarial value of the System's
24assets for fiscal years after June 30, 2008, any actuarial
25gains or losses from investment return incurred in a fiscal
26year shall be recognized in equal annual amounts over the

 

 

09800HB1154ham005- 60 -LRB098 08482 EFG 41969 a

15-year period following that fiscal year.
2    (k) For purposes of determining the required State
3contribution to the system for a particular year, the actuarial
4value of assets shall be assumed to earn a rate of return equal
5to the system's actuarially assumed rate of return.
6(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
796-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
86-18-12; 97-813, eff. 7-13-12.)
 
9    (40 ILCS 5/16-158.2 new)
10    Sec. 16-158.2. Obligations of State; funding guarantee.
11Pursuant to Article XIII, Section 5 of the 1970 Constitution of
12the State of Illinois, beginning on July 1, 2013, the State
13shall, as a retirement benefit to each participant and
14annuitant of the System be contractually obligated to the
15System (as a fiduciary and trustee of the participants and
16annuitants) to pay the annual required State contribution, as
17determined by the Board of the System using generally accepted
18actuarial principles, as is necessary to bring the total assets
19of the System up to 100% of the total actuarial liabilities of
20the System by the end of State fiscal year 2045. As a further
21retirement benefit and contractual obligation, each fiscal
22year, the State shall pay to each designated retirement system
23the annual required State contribution certified by the Board
24for that fiscal year. Payments of the annual required State
25contribution for each fiscal year shall be made in equal

 

 

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1monthly installments. Additionally, beginning in fiscal year
22014, State transfers to the Pension Stabilization Fund
3pursuant to Section 20 of the Budget Stabilization Act and
4payments to the System pursuant to Section 25 of the Budget
5Stabilization Act shall be further retirement benefits and
6contractual obligations. The transfers and payments prescribed
7in Sections 20 and 25 of the Budget Stabilization Act shall not
8be used by the retirement system when calculation any pension
9payment until the System has reached a funded level of 100%.
10This Section and the security it provides to participants and
11annuitants is intended to be, and is, a contractual right that
12is part of the pension benefits provided to the participants
13and annuitants. Notwithstanding anything to the contrary in the
14Court of Claims Act or any other law, a designated retirement
15system has the exclusive right to and shall bring a mandamus
16action in the Circuit Court of Sangamon County against the
17State to compel the State to make any installment of the annual
18required State contribution required by this Section,
19irrespective of other remedies that may be available to the
20System. Each member or annuitant of the System has the right to
21in any judicial district in which the System maintains an
22office if the System fails to bring an action specified in this
23Section, irrespective of other remedies that may be available
24to the member or annuitant. In making these determinations, the
25required State contribution shall be calculated each year as a
26level percentage of payroll over the years remaining to and

 

 

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1including fiscal year 2045 and shall be determined under the
2projected unit credit actuarial cost method.
 
3    Section 99. Effective date. This Act takes effect July 1,
42013.".