Full Text of SB3087 96th General Assembly
SB3087ham003 96TH GENERAL ASSEMBLY | Rep. Frank J. Mautino Filed: 1/11/2011
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| 1 | | AMENDMENT TO SENATE BILL 3087
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3087, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 3. The State Finance Act is amended by changing | 6 | | Section 6z-78 as follows: | 7 | | (30 ILCS 105/6z-78)
| 8 | | Sec. 6z-78. Capital Projects Fund; bonded indebtedness; | 9 | | transfers. Money in the Capital Projects Fund shall, if and | 10 | | when the State of Illinois incurs any bonded indebtedness using | 11 | | the bond authorizations authorization enacted in Public Act | 12 | | 96-36 and this amendatory Act of the 96th General Assembly this | 13 | | amendatory Act of the 96th General Assembly , be set aside and | 14 | | used for the purpose of paying and discharging annually the | 15 | | principal and interest on that bonded indebtedness then due and | 16 | | payable. |
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| 1 | | In addition to other transfers to the General Obligation | 2 | | Bond Retirement and Interest Fund made pursuant to Section 15 | 3 | | of the General Obligation Bond Act, upon each delivery of | 4 | | general obligation bonds using bond authorizations | 5 | | authorization enacted in Public Act 96-36 and this amendatory | 6 | | Act of the 96th General Assembly this amendatory Act of the | 7 | | 96th General Assembly the State Comptroller shall compute and | 8 | | certify to the State Treasurer the total amount of principal | 9 | | of, interest on, and premium, if any, on such bonds during the | 10 | | then current and each succeeding fiscal year. With respect to | 11 | | the interest payable on variable rate bonds, such | 12 | | certifications shall be calculated at the maximum rate of | 13 | | interest that may be payable during the fiscal year, after | 14 | | taking into account any credits permitted in the related | 15 | | indenture or other instrument against the amount of such | 16 | | interest required to be appropriated for the period. | 17 | | (a) Except as provided for in subsection (b), on or before | 18 | | the last day of each month, the State Treasurer and State | 19 | | Comptroller shall transfer from the Capital Projects Fund to | 20 | | the General Obligation Bond Retirement and Interest Fund an | 21 | | amount sufficient to pay the aggregate of the principal of, | 22 | | interest on, and premium, if any, on the bonds payable on their | 23 | | next payment date, divided by the number of monthly transfers | 24 | | occurring between the last previous payment date (or the | 25 | | delivery date if no payment date has yet occurred) and the next | 26 | | succeeding payment date. Interest payable on variable rate |
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| 1 | | bonds shall be calculated at the maximum rate of interest that | 2 | | may be payable for the relevant period, after taking into | 3 | | account any credits permitted in the related indenture or other | 4 | | instrument against the amount of such interest required to be | 5 | | appropriated for that period. Interest for which moneys have | 6 | | already been deposited into the capitalized interest account | 7 | | within the General Obligation Bond Retirement and Interest Fund | 8 | | shall not be included in the calculation of the amounts to be | 9 | | transferred under this subsection.
| 10 | | (b) On or before the last day of each month, the State | 11 | | Treasurer and State Comptroller shall transfer from the Capital | 12 | | Projects Fund to the General Obligation Bond Retirement and | 13 | | Interest Fund an amount sufficient to pay the aggregate of the | 14 | | principal of, interest on, and premium, if any, on the bonds | 15 | | issued prior to January 1, 2012 pursuant to Section 4(d) of the | 16 | | General Obligation Bond Act payable on their next payment date, | 17 | | divided by the number of monthly transfers occurring between | 18 | | the last previous payment date (or the delivery date if no | 19 | | payment date has yet occurred) and the next succeeding payment | 20 | | date. If the available balance in the Capital Projects Fund is | 21 | | not sufficient for the transfer required in this subsection, | 22 | | the State Treasurer and State Comptroller shall transfer the | 23 | | difference from the Road Fund to the General Obligation Bond | 24 | | Retirement and Interest Fund; except that such Road Fund | 25 | | transfers shall constitute a debt of the Capital Projects Fund | 26 | | which shall be repaid according to subsection (c). Interest |
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| 1 | | payable on variable rate bonds shall be calculated at the | 2 | | maximum rate of interest that may be payable for the relevant | 3 | | period, after taking into account any credits permitted in the | 4 | | related indenture or other instrument against the amount of | 5 | | such interest required to be appropriated for that period. | 6 | | Interest for which moneys have already been deposited into the | 7 | | capitalized interest account within the General Obligation | 8 | | Bond Retirement and Interest Fund shall not be included in the | 9 | | calculation of the amounts to be transferred under this | 10 | | subsection. | 11 | | (c) On the first day of any month when the Capital Projects | 12 | | Fund is carrying a debt to the Road Fund due to the provisions | 13 | | of subsection (b), the State Treasurer and State Comptroller | 14 | | shall transfer from the Capital Projects Fund to the Road Fund | 15 | | an amount sufficient to discharge that debt. These transfers to | 16 | | the Road Fund shall continue until the Capital Projects Fund | 17 | | has repaid to the Road Fund all transfers made from the Road | 18 | | Fund pursuant to subsection (b). Notwithstanding any other law | 19 | | to the contrary, transfers to the Road Fund from the Capital | 20 | | Projects Fund shall be made prior to any other expenditures or | 21 | | transfers out of the Capital Projects Fund. | 22 | | (Source: P.A. 96-36, eff. 7-13-09; 96-820, eff. 11-18-09.) | 23 | | Section 5. The General Obligation Bond Act is amended by | 24 | | changing Sections 2, 3, 4, 5, 6, 7, and 9 as follows: |
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| 1 | | (30 ILCS 330/2) (from Ch. 127, par. 652) | 2 | | Sec. 2. Authorization for Bonds. The State of Illinois is | 3 | | authorized to
issue, sell and provide for the retirement of | 4 | | General Obligation Bonds of
the State of Illinois for the | 5 | | categories and specific purposes expressed in
Sections 2 | 6 | | through 8 of this Act, in the total amount of $41,379,777,443 | 7 | | $37,217,777,443 $36,967,777,443 . | 8 | | The bonds authorized in this Section 2 and in Section 16 of | 9 | | this Act are
herein called "Bonds". | 10 | | Of the total amount of Bonds authorized in this Act, up to | 11 | | $2,200,000,000
in aggregate original principal amount may be | 12 | | issued and sold in accordance
with the Baccalaureate Savings | 13 | | Act in the form of General Obligation
College Savings Bonds. | 14 | | Of the total amount of Bonds authorized in this Act, up to | 15 | | $300,000,000 in
aggregate original principal amount may be | 16 | | issued and sold in accordance
with the Retirement Savings Act | 17 | | in the form of General Obligation
Retirement Savings Bonds. | 18 | | Of the total amount of Bonds authorized in this Act, the | 19 | | additional
$10,000,000,000 authorized by Public Act 93-2 and | 20 | | the $3,466,000,000 authorized by Public Act 96-43 shall be used | 21 | | solely as provided in Section 7.2. | 22 | | The issuance and sale of Bonds pursuant to the General | 23 | | Obligation Bond
Act is an economical and efficient method of | 24 | | financing the long-term capital needs of
the State. This Act | 25 | | will permit the issuance of a multi-purpose General
Obligation | 26 | | Bond with uniform terms and features. This will not only lower
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| 1 | | the cost of registration but also reduce the overall cost of | 2 | | issuing debt
by improving the marketability of Illinois General | 3 | | Obligation Bonds. | 4 | | (Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09; 96-36, | 5 | | eff. 7-13-09; 96-43, eff. 7-15-09; 96-885, eff. 3-11-10; | 6 | | 96-1000, eff. 7-2-10; revised 9-3-10.)
| 7 | | (30 ILCS 330/3) (from Ch. 127, par. 653)
| 8 | | Sec. 3. Capital Facilities. The amount of $8,900,463,443 | 9 | | $7,968,463,443 is authorized
to be used for the acquisition, | 10 | | development, construction, reconstruction,
improvement, | 11 | | financing, architectural planning and installation of capital
| 12 | | facilities within the State, consisting of buildings, | 13 | | structures, durable
equipment, land, interests in land, and the | 14 | | costs associated with the purchase and implementation of | 15 | | information technology, including but not limited to the | 16 | | purchase of hardware and software, for the following specific | 17 | | purposes:
| 18 | | (a) $3,007,228,000 $2,511,228,000 for educational | 19 | | purposes by
State universities and
colleges, the Illinois | 20 | | Community College Board created by the Public
Community | 21 | | College Act and for grants to public community colleges as
| 22 | | authorized by Sections 5-11 and 5-12 of the Public | 23 | | Community College Act;
| 24 | | (b) $1,648,420,000 $1,617,420,000 for correctional | 25 | | purposes at
State
prison and correctional centers;
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| 1 | | (c) $599,183,000 $575,183,000 for open spaces, | 2 | | recreational and
conservation purposes and the protection | 3 | | of land;
| 4 | | (d) $691,917,000 $664,917,000 for child care | 5 | | facilities, mental
and public health facilities, and | 6 | | facilities for the care of disabled
veterans and their | 7 | | spouses;
| 8 | | (e) $1,777,990,000 $1,630,990,000 for use by the | 9 | | State, its
departments, authorities, public corporations, | 10 | | commissions and agencies;
| 11 | | (f) $818,100 for cargo handling facilities at port | 12 | | districts and for
breakwaters, including harbor entrances, | 13 | | at port districts in conjunction
with facilities for small | 14 | | boats and pleasure crafts;
| 15 | | (g) $274,877,074 $248,877,074 for water resource | 16 | | management
projects;
| 17 | | (h) $16,940,269 for the provision of facilities for | 18 | | food production
research and related instructional and | 19 | | public service activities at the
State universities and | 20 | | public community colleges;
| 21 | | (i) $36,000,000 for grants by the Secretary of State, | 22 | | as
State
Librarian, for central library facilities | 23 | | authorized by Section 8
of the Illinois Library System Act | 24 | | and for grants by the Capital
Development Board to units of | 25 | | local government for public library
facilities;
| 26 | | (j) $25,000,000 for the acquisition, development, |
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| 1 | | construction,
reconstruction, improvement, financing, | 2 | | architectural planning and
installation of capital | 3 | | facilities consisting of buildings, structures,
durable | 4 | | equipment and land for grants to counties, municipalities | 5 | | or public
building commissions with correctional | 6 | | facilities that do not comply with
the minimum standards of | 7 | | the Department of Corrections under Section 3-15-2
of the | 8 | | Unified Code of Corrections;
| 9 | | (k) $5,000,000 for grants in fiscal year 1988 by the | 10 | | Department of
Conservation for improvement or expansion of | 11 | | aquarium facilities located on
property owned by a park | 12 | | district;
| 13 | | (l) $588,590,000 $432,590,000 to State agencies for | 14 | | grants to
local governments for
the acquisition, | 15 | | financing, architectural planning, development, | 16 | | alteration,
installation, and construction of capital | 17 | | facilities consisting of buildings,
structures, durable | 18 | | equipment, and land; and
| 19 | | (m) $228,500,000 $203,500,000 for the Illinois Open | 20 | | Land Trust
Program
as defined by the
Illinois Open Land | 21 | | Trust Act.
| 22 | | The amounts authorized above for capital facilities may be | 23 | | used
for the acquisition, installation, alteration, | 24 | | construction, or
reconstruction of capital facilities and for | 25 | | the purchase of equipment
for the purpose of major capital | 26 | | improvements which will reduce energy
consumption in State |
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| 1 | | buildings or facilities.
| 2 | | (Source: P.A. 96-36, eff. 7-13-09; 96-37, eff. 7-13-09; | 3 | | 96-1000, eff. 7-2-10.)
| 4 | | (30 ILCS 330/4) (from Ch. 127, par. 654)
| 5 | | Sec. 4. Transportation. The amount of $12,443,799,000 | 6 | | $9,948,799,000
is authorized for use by the Department of | 7 | | Transportation for the specific
purpose of promoting and | 8 | | assuring rapid, efficient, and safe highway, air and
mass | 9 | | transportation for the inhabitants of the State by providing | 10 | | monies,
including the making of grants and loans, for the | 11 | | acquisition, construction,
reconstruction, extension and | 12 | | improvement of the following transportation
facilities and | 13 | | equipment, and for the acquisition of real property and
| 14 | | interests in real property required or expected to be required | 15 | | in connection
therewith as follows:
| 16 | | (a) $5,432,129,000 for State highways, arterial
highways, | 17 | | freeways,
roads, bridges, structures separating highways and | 18 | | railroads and roads, and
bridges on roads maintained by | 19 | | counties, municipalities, townships or road
districts for the | 20 | | following specific purposes:
| 21 | | (1) $3,330,000,000 for use statewide,
| 22 | | (2) $3,677,000 for use outside the Chicago urbanized
| 23 | | area,
| 24 | | (3) $7,543,000 for use within the Chicago urbanized | 25 | | area,
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| 1 | | (4) $13,060,600 for use within the City of Chicago,
| 2 | | (5) $58,987,500 for use within the counties of Cook,
| 3 | | DuPage, Kane, Lake, McHenry and Will,
| 4 | | (6) $18,860,900 for use outside the counties of Cook, | 5 | | DuPage, Kane,
Lake, McHenry and Will, and
| 6 | | (7) $2,000,000,000 for use on projects included in | 7 | | either (i) the FY09-14 Proposed Highway Improvement | 8 | | Program as published by the Illinois Department of | 9 | | Transportation in May 2008 or (ii) the FY10-15 Proposed | 10 | | Highway Improvement Program to be published by the Illinois | 11 | | Department of Transportation in the spring of 2009; except | 12 | | that all projects must be maintenance projects for the | 13 | | existing State system with the goal of reaching 90% | 14 | | acceptable condition in the system statewide and further | 15 | | except that all projects must reflect the generally | 16 | | accepted historical distribution of projects throughout | 17 | | the State. | 18 | | (b) $4,280,070,000 $3,130,070,000 for rail facilities and | 19 | | for
mass transit facilities, as defined in Section 2705-305 of | 20 | | the Department of
Transportation Law (20 ILCS 2705/2705-305), | 21 | | including rapid transit, rail, bus
and other equipment used in | 22 | | connection therewith by the State or any unit of
local | 23 | | government, special transportation district, municipal | 24 | | corporation or
other corporation or public authority | 25 | | authorized to provide and promote public
transportation within | 26 | | the State or two or more of the foregoing jointly, for
the |
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| 1 | | following specific purposes:
| 2 | | (1) $3,184,270,000 $2,034,270,000 statewide,
| 3 | | (2) $83,350,000 for use within the counties of Cook,
| 4 | | DuPage, Kane, Lake, McHenry and Will,
| 5 | | (3) $12,450,000 for use outside the counties of Cook,
| 6 | | DuPage, Kane, Lake, McHenry and Will, and
| 7 | | (4) $1,000,000,000 for use on projects that shall | 8 | | reflect the generally accepted historical distribution of | 9 | | projects throughout the State. | 10 | | (c) $482,600,000 $371,600,000 for airport or aviation | 11 | | facilities and any equipment used
in connection therewith, | 12 | | including engineering and land acquisition costs,
by the State | 13 | | or any unit of local government, special transportation | 14 | | district,
municipal corporation or other corporation or public | 15 | | authority authorized
to provide public transportation within | 16 | | the State, or two or more of the
foregoing acting jointly, and | 17 | | for the making of deposits into the Airport
Land Loan Revolving | 18 | | Fund for loans to public airport owners pursuant to the
| 19 | | Illinois Aeronautics Act.
| 20 | | (d) $2,249,000,000 $1,015,000,000 for use statewide for | 21 | | State or local highways, arterial highways, freeways, roads, | 22 | | bridges, and structures separating highways and railroads and | 23 | | roads, and for grants to counties, municipalities, townships, | 24 | | or road districts for planning, engineering, acquisition, | 25 | | construction, reconstruction, development, improvement, | 26 | | extension, and all construction-related expenses of the public |
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| 1 | | infrastructure and other transportation improvement projects | 2 | | which are related to economic development in the State of | 3 | | Illinois. | 4 | | (Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-37, | 5 | | eff. 7-13-09.)
| 6 | | (30 ILCS 330/5) (from Ch. 127, par. 655)
| 7 | | Sec. 5. School Construction.
| 8 | | (a) The amount of $58,450,000 is authorized to
make grants | 9 | | to local school
districts for the acquisition, development, | 10 | | construction, reconstruction,
rehabilitation, improvement, | 11 | | financing, architectural planning and
installation of capital | 12 | | facilities, including but not limited to those
required for | 13 | | special
education building projects provided for in Article 14 | 14 | | of The School Code,
consisting of buildings, structures, and | 15 | | durable equipment, and for the
acquisition and improvement of | 16 | | real property and interests in real property
required, or | 17 | | expected to be required, in connection therewith.
| 18 | | (b) $22,550,000, or so much thereof as may be necessary, | 19 | | for grants to
school districts for the making of principal and | 20 | | interest payments, required
to be made, on bonds issued by such | 21 | | school districts after January 1, 1969,
pursuant to any | 22 | | indenture, ordinance, resolution, agreement or contract
to | 23 | | provide funds for the acquisition, development, construction,
| 24 | | reconstruction, rehabilitation, improvement, architectural | 25 | | planning and installation of
capital facilities consisting of |
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| 1 | | buildings, structures, durable equipment
and land for | 2 | | educational purposes or for lease payments required to be made
| 3 | | by a school district for principal and interest payments on | 4 | | bonds issued
by a Public Building Commission after January 1, | 5 | | 1969.
| 6 | | (c) $10,000,000 for grants to school districts for the | 7 | | acquisition,
development, construction, reconstruction, | 8 | | rehabilitation, improvement,
architectural
planning and | 9 | | installation of capital facilities consisting of buildings
| 10 | | structures, durable equipment and land for special education | 11 | | building projects.
| 12 | | (d) $9,000,000 for grants to school districts for the | 13 | | reconstruction,
rehabilitation, improvement, financing and | 14 | | architectural planning of capital
facilities, including | 15 | | construction at another location to replace such capital
| 16 | | facilities, consisting of those public school buildings and | 17 | | temporary school
facilities which, prior to January 1, 1984, | 18 | | were condemned by the regional
superintendent under Section | 19 | | 3-14.22 of The School Code or by any State
official having | 20 | | jurisdiction over building safety.
| 21 | | (e) $3,050,000,000 for grants to school districts for
| 22 | | school improvement
projects authorized by the School | 23 | | Construction Law. The bonds shall be sold in
amounts not to | 24 | | exceed the following schedule, except any bonds not sold during
| 25 | | one year shall be added to the bonds to be sold during the | 26 | | remainder of the
schedule:
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| 1 | | First year ...................................$200,000,000
| 2 | | Second year ..................................$450,000,000
| 3 | | Third year ...................................$500,000,000
| 4 | | Fourth year ..................................$500,000,000
| 5 | | Fifth year ...................................$800,000,000
| 6 | | Sixth year and thereafter ....................$600,000,000
| 7 | | (f) $1,066,000,000 $420,000,000 grants to school districts | 8 | | for school implemented projects authorized by the School | 9 | | Construction Law. | 10 | | (Source: P.A. 96-36, eff. 7-13-09.)
| 11 | | (30 ILCS 330/6) (from Ch. 127, par. 656)
| 12 | | Sec. 6. Anti-Pollution.
| 13 | | (a) The amount of $422,815,000 $369,815,000 is authorized | 14 | | for
allocation by the
Environmental Protection Agency for | 15 | | grants or loans to units of local
government in such amounts, | 16 | | at such times and for such purpose as the Agency
deems | 17 | | necessary or desirable for the planning, financing, and | 18 | | construction of
municipal sewage treatment works and solid | 19 | | waste disposal facilities and for
making of deposits into the | 20 | | Water Revolving Fund and
the U.S. Environmental Protection Fund | 21 | | to provide assistance in accordance
with the provisions of | 22 | | Title IV-A of the Environmental Protection Act.
| 23 | | (b) The amount of $236,500,000 $215,500,000 is authorized | 24 | | for allocation by the
Environmental Protection Agency for | 25 | | payment of claims submitted to the State
and approved for |
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| 1 | | payment under the Leaking Underground Storage Tank Program
| 2 | | established in Title XVI of the Environmental Protection Act.
| 3 | | (Source: P.A. 96-36, eff. 7-13-09.)
| 4 | | (30 ILCS 330/7) (from Ch. 127, par. 657) | 5 | | Sec. 7. Coal and Energy Development. The amount of | 6 | | $698,200,000 is
authorized to be used by the Department of | 7 | | Commerce and Economic Opportunity (formerly Department of | 8 | | Commerce and Community Affairs) for
coal and energy development | 9 | | purposes, pursuant to Sections 2, 3 and 3.1 of the
Illinois | 10 | | Coal and Energy Development Bond Act, for the purposes
| 11 | | specified
in Section 8.1 of the Energy Conservation and Coal | 12 | | Development Act, for
the purposes specified in Section 605-332 | 13 | | of the Department of Commerce and
Economic Opportunity Law of | 14 | | the Civil Administrative Code of Illinois, and for the purpose | 15 | | of facility cost reports prepared pursuant to Sections 1-58 or | 16 | | 1-75(d)(4) of the Illinois Power Agency Act and for the purpose | 17 | | of development costs pursuant to Section 8.1 of the Energy | 18 | | Conservation and Coal Development Act. Of this
amount: | 19 | | (a) $115,000,000 is
for the specific purposes of | 20 | | acquisition,
development, construction, reconstruction, | 21 | | improvement, financing,
architectural and technical planning | 22 | | and installation of capital facilities
consisting of | 23 | | buildings, structures, durable equipment, and land for the
| 24 | | purpose of capital development of coal resources within the | 25 | | State and for the
purposes specified in Section 8.1 of the |
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| 1 | | Energy Conservation and Coal
Development Act; | 2 | | (b) $35,000,000 is for the purposes specified in Section | 3 | | 8.1 of the
Energy
Conservation and Coal Development Act and | 4 | | making grants to generating stations and coal gasification | 5 | | facilities within the State of Illinois and to the owner of a
| 6 | | generating station
located in Illinois and having at least | 7 | | three coal-fired generating units
with accredited summer | 8 | | capability greater than 500 megawatts each at such
generating | 9 | | station as provided in Section 6 of that Bond Act; | 10 | | (c) $13,200,000 is for research, development and | 11 | | demonstration
of forms of energy
other than that derived from | 12 | | coal, either on or off State property; | 13 | | (d) $500,000,000 is for the purpose of providing financial | 14 | | assistance to
new
electric generating facilities as provided in | 15 | | Section 605-332 of the Department
of Commerce and Economic | 16 | | Opportunity Law of the Civil Administrative Code of
Illinois; | 17 | | and | 18 | | (e) $50,000,000 $35,000,000 is for the purpose of facility | 19 | | cost reports prepared for not more than one facility pursuant | 20 | | to Section 1-75(d)(4) of the Illinois Power Agency Act and not | 21 | | more than one facility pursuant to Section 1-58 of the Illinois | 22 | | Power Agency Act and for the purpose of up to $6,000,000 of | 23 | | development costs pursuant to Section 8.1 of the Energy | 24 | | Conservation and Coal Development Act. | 25 | | (Source: P.A. 95-1026, eff. 1-12-09; 96-781, eff. 8-28-09; | 26 | | 96-1000, eff. 7-2-10; 96-1465, eff. 8-20-10.)
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| 1 | | (30 ILCS 330/9) (from Ch. 127, par. 659)
| 2 | | Sec. 9. Conditions for Issuance and Sale of Bonds - | 3 | | Requirements for
Bonds. | 4 | | (a) Except as otherwise provided in this subsection, Bonds | 5 | | shall be issued and sold from time to time, in one or
more | 6 | | series, in such amounts and at such prices as may be directed | 7 | | by the
Governor, upon recommendation by the Director of the
| 8 | | Governor's Office of Management and Budget.
Bonds shall be in | 9 | | such form (either coupon, registered or book entry), in
such | 10 | | denominations, payable within 25 years from their date, subject | 11 | | to such
terms of redemption with or without premium, bear | 12 | | interest payable at
such times and at such fixed or variable | 13 | | rate or rates, and be dated
as shall be fixed and determined by | 14 | | the Director of
the
Governor's Office of Management and Budget
| 15 | | in the order authorizing the issuance and sale
of any series of | 16 | | Bonds, which order shall be approved by the Governor
and is | 17 | | herein called a "Bond Sale Order"; provided however, that | 18 | | interest
payable at fixed or variable rates shall not exceed | 19 | | that permitted in the
Bond Authorization Act, as now or | 20 | | hereafter amended. Bonds shall be
payable at such place or | 21 | | places, within or without the State of Illinois, and
may be | 22 | | made registrable as to either principal or as to both principal | 23 | | and
interest, as shall be specified in the Bond Sale Order. | 24 | | Bonds may be callable
or subject to purchase and retirement or | 25 | | tender and remarketing as fixed
and determined in the Bond Sale |
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| 1 | | Order. Bonds, other than Bonds issued under Section 3 of this | 2 | | Act for the costs associated with the purchase and | 3 | | implementation of information technology, (i) except for | 4 | | refunding Bonds satisfying the requirements of Section 16 of | 5 | | this Act and sold during fiscal year 2009, 2010, or 2011, must | 6 | | be issued with principal or mandatory redemption amounts in | 7 | | equal amounts, with the first maturity issued occurring within | 8 | | the fiscal year in which the Bonds are issued or within the | 9 | | next succeeding fiscal year and (ii) must mature or be subject | 10 | | to mandatory redemption each fiscal year thereafter up to 25 | 11 | | years, except for refunding Bonds satisfying the requirements | 12 | | of Section 16 of this Act and sold during fiscal year 2009, | 13 | | 2010, or 2011 which must mature or be subject to mandatory | 14 | | redemption each fiscal year thereafter up to 16 years. Bonds | 15 | | issued under Section 3 of this Act for the costs associated | 16 | | with the purchase and implementation of information technology | 17 | | must be issued with principal or mandatory redemption amounts | 18 | | in equal amounts, with the first maturity issued occurring with | 19 | | the fiscal year in which the respective bonds are issued or | 20 | | with the next succeeding fiscal year, with the respective bonds | 21 | | issued maturing or subject to mandatory redemption each fiscal | 22 | | year thereafter up to 10 years. Notwithstanding any provision | 23 | | of this Act to the contrary, the Bonds authorized by Public Act | 24 | | 96-43 shall be payable within 5 years from their date and must | 25 | | be issued with principal or mandatory redemption amounts in | 26 | | equal amounts, with payment of principal or mandatory |
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| 1 | | redemption beginning in the first fiscal year following the | 2 | | fiscal year in which the Bonds are issued.
| 3 | | In the case of any series of Bonds bearing interest at a | 4 | | variable interest
rate ("Variable Rate Bonds"), in lieu of | 5 | | determining the rate or rates at which
such series of Variable | 6 | | Rate Bonds shall bear interest and the price or prices
at which | 7 | | such Variable Rate Bonds shall be initially sold or remarketed | 8 | | (in the
event of purchase and subsequent resale), the Bond Sale | 9 | | Order may provide that
such interest rates and prices may vary | 10 | | from time to time depending on criteria
established in such | 11 | | Bond Sale Order, which criteria may include, without
| 12 | | limitation, references to indices or variations in interest | 13 | | rates as may, in
the judgment of a remarketing agent, be | 14 | | necessary to cause Variable Rate Bonds
of such series to be | 15 | | remarketable from time to time at a price equal to their
| 16 | | principal amount, and may provide for appointment of a bank, | 17 | | trust company,
investment bank, or other financial institution | 18 | | to serve as remarketing agent
in that connection.
The Bond Sale | 19 | | Order may provide that alternative interest rates or provisions
| 20 | | for establishing alternative interest rates, different | 21 | | security or claim
priorities, or different call or amortization | 22 | | provisions will apply during
such times as Variable Rate Bonds | 23 | | of any series are held by a person providing
credit or | 24 | | liquidity enhancement arrangements for such Bonds as | 25 | | authorized in
subsection (b) of this Section.
The Bond Sale | 26 | | Order may also provide for such variable interest rates to be
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| 1 | | established pursuant to a process generally known as an auction | 2 | | rate process
and may provide for appointment of one or more | 3 | | financial institutions to serve
as auction agents and | 4 | | broker-dealers in connection with the establishment of
such | 5 | | interest rates and the sale and remarketing of such Bonds.
| 6 | | (b) In connection with the issuance of any series of Bonds, | 7 | | the State may
enter into arrangements to provide additional | 8 | | security and liquidity for such
Bonds, including, without | 9 | | limitation, bond or interest rate insurance or
letters of | 10 | | credit, lines of credit, bond purchase contracts, or other
| 11 | | arrangements whereby funds are made available to retire or | 12 | | purchase Bonds,
thereby assuring the ability of owners of the | 13 | | Bonds to sell or redeem their
Bonds. The State may enter into | 14 | | contracts and may agree to pay fees to persons
providing such | 15 | | arrangements, but only under circumstances where the Director | 16 | | of
the
Governor's Office of Management and Budget certifies | 17 | | that he or she reasonably expects the total
interest paid or to | 18 | | be paid on the Bonds, together with the fees for the
| 19 | | arrangements (being treated as if interest), would not, taken | 20 | | together, cause
the Bonds to bear interest, calculated to their | 21 | | stated maturity, at a rate in
excess of the rate that the Bonds | 22 | | would bear in the absence of such
arrangements.
| 23 | | The State may, with respect to Bonds issued or anticipated | 24 | | to be issued,
participate in and enter into arrangements with | 25 | | respect to interest rate
protection or exchange agreements, | 26 | | guarantees, or financial futures contracts
for the purpose of |
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| 1 | | limiting, reducing, or managing interest rate exposure.
The | 2 | | authority granted under this paragraph, however, shall not | 3 | | increase the principal amount of Bonds authorized to be issued | 4 | | by law. The arrangements may be executed and delivered by the | 5 | | Director
of the
Governor's Office of Management and Budget on | 6 | | behalf of the State. Net payments for such
arrangements shall | 7 | | constitute interest on the Bonds and shall be paid from the
| 8 | | General Obligation Bond Retirement and Interest Fund. The | 9 | | Director of the
Governor's Office of Management and Budget | 10 | | shall at least annually certify to the Governor and
the
State | 11 | | Comptroller his or her estimate of the amounts of such net | 12 | | payments to
be included in the calculation of interest required | 13 | | to be paid by the State.
| 14 | | (c) Prior to the issuance of any Variable Rate Bonds | 15 | | pursuant to
subsection (a), the Director of the
Governor's | 16 | | Office of Management and Budget shall adopt an
interest rate | 17 | | risk management policy providing that the amount of the State's
| 18 | | variable rate exposure with respect to Bonds shall not exceed | 19 | | 20%. This policy
shall remain in effect while any Bonds are | 20 | | outstanding and the issuance of
Bonds
shall be subject to the | 21 | | terms of such policy. The terms of this policy may be
amended | 22 | | from time to time by the Director of the
Governor's Office of | 23 | | Management and Budget but in no
event shall any amendment cause | 24 | | the permitted level of the State's variable
rate exposure with | 25 | | respect to Bonds to exceed 20%.
| 26 | | (d) "Build America Bonds" in this Section means Bonds |
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| 1 | | authorized by Section 54AA of the Internal Revenue Code of | 2 | | 1986, as amended ("Internal Revenue Code"), and bonds issued | 3 | | from time to time to refund or continue to refund "Build | 4 | | America Bonds". | 5 | | (e) Notwithstanding any other provision of this Section, | 6 | | Qualified School Construction Bonds shall be issued and sold | 7 | | from time to time, in one or more series, in such amounts and | 8 | | at such prices as may be directed by the Governor, upon | 9 | | recommendation by the Director of the Governor's Office of | 10 | | Management and Budget. Qualified School Construction Bonds | 11 | | shall be in such form (either coupon, registered or book | 12 | | entry), in such denominations, payable within 25 years from | 13 | | their date, subject to such terms of redemption with or without | 14 | | premium, and if the Qualified School Construction Bonds are | 15 | | issued with a supplemental coupon, bear interest payable at | 16 | | such times and at such fixed or variable rate or rates, and be | 17 | | dated as shall be fixed and determined by the Director of the | 18 | | Governor's Office of Management and Budget in the order | 19 | | authorizing the issuance and sale of any series of Qualified | 20 | | School Construction Bonds, which order shall be approved by the | 21 | | Governor and is herein called a "Bond Sale Order"; except that | 22 | | interest payable at fixed or variable rates, if any, shall not | 23 | | exceed that permitted in the Bond Authorization Act, as now or | 24 | | hereafter amended. Qualified School Construction Bonds shall | 25 | | be payable at such place or places, within or without the State | 26 | | of Illinois, and may be made registrable as to either principal |
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| 1 | | or as to both principal and interest, as shall be specified in | 2 | | the Bond Sale Order. Qualified School Construction Bonds may be | 3 | | callable or subject to purchase and retirement or tender and | 4 | | remarketing as fixed and determined in the Bond Sale Order. | 5 | | Qualified School Construction Bonds must be issued with | 6 | | principal or mandatory redemption amounts or sinking fund | 7 | | payments into the General Obligation Bond Retirement and | 8 | | Interest Fund (or subaccount therefor) in equal amounts, with | 9 | | the first maturity issued, mandatory redemption payment or | 10 | | sinking fund payment occurring within the fiscal year in which | 11 | | the Qualified School Construction Bonds are issued or within | 12 | | the next succeeding fiscal year, with Qualified School | 13 | | Construction Bonds issued maturing or subject to mandatory | 14 | | redemption or with sinking fund payments thereof deposited each | 15 | | fiscal year thereafter up to 25 years. Sinking fund payments | 16 | | set forth in this subsection shall be permitted only to the | 17 | | extent authorized in Section 54F of the Internal Revenue Code | 18 | | or as otherwise determined by the Director of the Governor's | 19 | | Office of Management and Budget. "Qualified School | 20 | | Construction Bonds" in this subsection means Bonds authorized | 21 | | by Section 54F of the Internal Revenue Code and for bonds | 22 | | issued from time to time to refund or continue to refund such | 23 | | "Qualified School Construction Bonds". | 24 | | (f) Beginning with the next issuance by the Governor's | 25 | | Office of Management and Budget to the Procurement Policy Board | 26 | | of a request for quotation for the purpose of formulating a new |
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| 1 | | pool of qualified underwriting banks list, all entities | 2 | | responding to such a request for quotation for inclusion on | 3 | | that list shall provide a written report to the Governor's | 4 | | Office of Management and Budget and the Illinois Comptroller. | 5 | | The written report submitted to the Comptroller shall (i) be | 6 | | published on the Comptroller's Internet website and (ii) be | 7 | | used by the Governor's Office of Management and Budget for the | 8 | | purposes of scoring such a request for quotation. The written | 9 | | report, at a minimum, shall: | 10 | | (1) disclose whether, within the past 3 months, | 11 | | pursuant to its credit default swap market-making | 12 | | activities, the firm has entered into any State of Illinois | 13 | | credit default swaps ("CDS"); | 14 | | (2) include, in the event of State of Illinois CDS | 15 | | activity, disclosure of the firm's cumulative notional | 16 | | volume of State of Illinois CDS trades and the firm's | 17 | | outstanding gross and net notional amount of State of | 18 | | Illinois CDS, as of the end of the current 3-month period; | 19 | | (3) indicate, pursuant to the firm's proprietary | 20 | | trading activities, disclosure of whether the firm, within | 21 | | the past 3 months, has entered into any proprietary trades | 22 | | for its own account in State of Illinois CDS; | 23 | | (4) include, in the event of State of Illinois | 24 | | proprietary trades, disclosure of the firm's outstanding | 25 | | gross and net notional amount of proprietary State of | 26 | | Illinois CDS and whether the net position is short or long |
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| 1 | | credit protection, as of the end of the current 3-month | 2 | | period; | 3 | | (5) list all time periods during the past 3 months | 4 | | during which the firm held net long or net short State of | 5 | | Illinois CDS proprietary credit protection positions, the | 6 | | amount of such positions, and whether those positions were | 7 | | net long or net short credit protection positions; and | 8 | | (6) indicate whether, within the previous 3 months, the | 9 | | firm released any publicly available research or marketing | 10 | | reports that reference State of Illinois CDS and include | 11 | | those research or marketing reports as attachments. | 12 | | (g) All entities included on a Governor's Office of | 13 | | Management and Budget's pool of qualified underwriting banks | 14 | | list shall, as soon as possible after the effective date of | 15 | | this amendatory Act of the 96th General Assembly, but not later | 16 | | than January 21, 2011, and on a quarterly fiscal basis | 17 | | thereafter, provide a written report to the Governor's Office | 18 | | of Management and Budget and the Illinois Comptroller. The | 19 | | written reports submitted to the Comptroller shall be published | 20 | | on the Comptroller's Internet website. The written reports, at | 21 | | a minimum, shall: | 22 | | (1) disclose whether, within the past 3 months, | 23 | | pursuant to its credit default swap market-making | 24 | | activities, the firm has entered into any State of Illinois | 25 | | credit default swaps ("CDS"); | 26 | | (2) include, in the event of State of Illinois CDS |
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| 1 | | activity, disclosure of the firm's cumulative notional | 2 | | volume of State of Illinois CDS trades and the firm's | 3 | | outstanding gross and net notional amount of State of | 4 | | Illinois CDS, as of the end of the current 3-month period; | 5 | | (3) indicate, pursuant to the firm's proprietary | 6 | | trading activities, disclosure of whether the firm, within | 7 | | the past 3 months, has entered into any proprietary trades | 8 | | for its own account in State of Illinois CDS; | 9 | | (4) include, in the event of State of Illinois | 10 | | proprietary trades, disclosure of the firm's outstanding | 11 | | gross and net notional amount of proprietary State of | 12 | | Illinois CDS and whether the net position is short or long | 13 | | credit protection, as of the end of the current 3-month | 14 | | period; | 15 | | (5) list all time periods during the past 3 months | 16 | | during which the firm held net long or net short State of | 17 | | Illinois CDS proprietary credit protection positions, the | 18 | | amount of such positions, and whether those positions were | 19 | | net long or net short credit protection positions; and | 20 | | (6) indicate whether, within the previous 3 months, the | 21 | | firm released any publicly available research or marketing | 22 | | reports that reference State of Illinois CDS and include | 23 | | those research or marketing reports as attachments. | 24 | | (Source: P.A. 96-18, eff. 6-26-09; 96-37, eff. 7-13-09; 96-43, | 25 | | eff. 7-15-09; 96-828, eff. 12-2-09.)
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| 1 | | Section 10. The Build Illinois Bond Act is amended by | 2 | | changing Sections 2 and 4 as follows:
| 3 | | (30 ILCS 425/2) (from Ch. 127, par. 2802)
| 4 | | Sec. 2. Authorization for Bonds. The State of Illinois is
| 5 | | authorized to issue, sell and provide for the retirement of | 6 | | limited
obligation bonds, notes and other evidences of | 7 | | indebtedness of the State of
Illinois in the total principal | 8 | | amount of $5,703,509,000 $4,615,509,000
herein called "Bonds". | 9 | | Such authorized amount of Bonds shall
be reduced from time to | 10 | | time by amounts, if any, which are equal to the
moneys received | 11 | | by the Department of Revenue in any fiscal year pursuant to
| 12 | | Section 3-1001 of the "Illinois Vehicle Code", as amended, in | 13 | | excess of the
Annual Specified Amount (as defined in Section 3 | 14 | | of the "Retailers'
Occupation Tax Act", as amended) and | 15 | | transferred at the end of such fiscal
year from the General | 16 | | Revenue Fund to the Build Illinois Purposes Fund (now | 17 | | abolished) as
provided in Section 3-1001 of said Code; | 18 | | provided, however, that no such
reduction shall affect the | 19 | | validity or enforceability of any Bonds issued
prior to such | 20 | | reduction. Such amount of authorized Bonds
shall be exclusive | 21 | | of any refunding Bonds issued pursuant to Section 15 of
this | 22 | | Act and exclusive of any Bonds issued pursuant to this Section | 23 | | which
are redeemed, purchased, advance refunded, or defeased in | 24 | | accordance with
paragraph (f) of Section 4 of this Act. Bonds | 25 | | shall be issued for the
categories and specific purposes |
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| 1 | | expressed in Section 4 of this Act.
| 2 | | (Source: P.A. 96-36, eff. 7-13-09.)
| 3 | | (30 ILCS 425/4) (from Ch. 127, par. 2804)
| 4 | | Sec. 4. Purposes of Bonds. Bonds shall be issued for the | 5 | | following
purposes and in the approximate amounts as set forth | 6 | | below:
| 7 | | (a) $3,213,000,000 $2,917,000,000 for the expenses of | 8 | | issuance and
sale of Bonds, including bond discounts, and for | 9 | | planning, engineering,
acquisition, construction, | 10 | | reconstruction, development, improvement and
extension of the | 11 | | public infrastructure in the State of Illinois, including: the
| 12 | | making of loans or grants to local governments for waste | 13 | | disposal systems,
water and sewer line extensions and water | 14 | | distribution and purification
facilities, rail or air or water | 15 | | port improvements, gas and electric utility
extensions, | 16 | | publicly owned industrial and commercial sites, buildings
used | 17 | | for public administration purposes and other public | 18 | | infrastructure capital
improvements; the making of loans or | 19 | | grants to units of local government
for financing and | 20 | | construction of wastewater facilities, including grants to | 21 | | serve unincorporated areas; refinancing or
retiring bonds | 22 | | issued between January 1, 1987 and January 1,
1990 by home rule | 23 | | municipalities, debt service on which is provided from a
tax | 24 | | imposed by home rule municipalities prior to January 1, 1990 on | 25 | | the
sale of food and drugs pursuant to Section 8-11-1 of the |
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| 1 | | Home Rule
Municipal Retailers' Occupation Tax Act or Section | 2 | | 8-11-5 of the Home
Rule Municipal Service Occupation Tax Act; | 3 | | the making of deposits not
to exceed $70,000,000 in the | 4 | | aggregate into
the Water Pollution Control Revolving Fund to | 5 | | provide assistance in
accordance with the provisions of Title | 6 | | IV-A of the Environmental
Protection Act; the planning, | 7 | | engineering, acquisition,
construction, reconstruction, | 8 | | alteration, expansion, extension and
improvement of highways, | 9 | | bridges, structures separating highways and
railroads, rest | 10 | | areas, interchanges, access
roads to and from any State or | 11 | | local highway and other transportation
improvement projects | 12 | | which are related to
economic development activities; the | 13 | | making of loans or grants for
planning, engineering, | 14 | | rehabilitation, improvement or construction of rail
and | 15 | | transit facilities; the planning, engineering, acquisition,
| 16 | | construction, reconstruction and improvement of watershed, | 17 | | drainage, flood
control, recreation and related improvements | 18 | | and facilities, including
expenses related to land and easement | 19 | | acquisition, relocation, control
structures, channel work and | 20 | | clearing and appurtenant work; the making of
grants for | 21 | | improvement and development of zoos and park district field
| 22 | | houses and related structures; and the making of grants for | 23 | | improvement and
development of Navy Pier and related | 24 | | structures.
| 25 | | (b) $541,000,000 $196,000,000 for fostering economic | 26 | | development and
increased employment and the well being of the |
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| 1 | | citizens of Illinois, including:
the making of grants for | 2 | | improvement and development of McCormick Place and
related | 3 | | structures; the
planning and construction of a | 4 | | microelectronics research center, including
the planning, | 5 | | engineering, construction, improvement, renovation and
| 6 | | acquisition of buildings, equipment and related utility | 7 | | support systems;
the making of loans to businesses and | 8 | | investments in small businesses;
acquiring real properties for | 9 | | industrial or commercial site development;
acquiring, | 10 | | rehabilitating and reconveying industrial and commercial
| 11 | | properties for the purpose of expanding employment and | 12 | | encouraging private
and other public sector investment in the | 13 | | economy of Illinois; the payment
of expenses associated with | 14 | | siting the Superconducting Super Collider Particle
Accelerator | 15 | | in Illinois and with its acquisition, construction,
| 16 | | maintenance, operation, promotion and support; the making of | 17 | | loans for the
planning, engineering, acquisition, | 18 | | construction, improvement and
conversion of facilities and | 19 | | equipment which will foster the use of
Illinois coal; the | 20 | | payment of expenses associated with the
promotion, | 21 | | establishment, acquisition and operation of small business
| 22 | | incubator facilities and agribusiness research facilities, | 23 | | including the lease,
purchase, renovation, planning, | 24 | | engineering, construction and maintenance of
buildings, | 25 | | utility support systems and equipment designated for such
| 26 | | purposes and the establishment and maintenance of centralized |
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| 1 | | support
services within such facilities; and the making of | 2 | | grants or loans to
units of local government for Urban | 3 | | Development Action Grant and Housing
Partnership programs.
| 4 | | (c) $1,741,358,100 $1,352,358,100 for the development and
| 5 | | improvement of educational,
scientific, technical and | 6 | | vocational programs and facilities and the
expansion of health | 7 | | and human services for all citizens of Illinois,
including: the | 8 | | making of construction and improvement grants and loans
to | 9 | | public libraries
and library systems; the making of grants and | 10 | | loans for planning,
engineering, acquisition and construction
| 11 | | of a new State central library in Springfield; the planning, | 12 | | engineering,
acquisition and construction of an animal and | 13 | | dairy sciences facility; the
planning, engineering, | 14 | | acquisition and construction of a campus and all
related | 15 | | buildings, facilities, equipment and materials for Richland
| 16 | | Community College; the acquisition, rehabilitation and | 17 | | installation of
equipment and materials for scientific and | 18 | | historical surveys; the making of
grants or loans for | 19 | | distribution to eligible vocational education instructional
| 20 | | programs for the upgrading of vocational education programs, | 21 | | school shops
and laboratories, including the acquisition, | 22 | | rehabilitation and
installation of technical equipment and | 23 | | materials; the making of grants or
loans for distribution to | 24 | | eligible local educational agencies for the
upgrading of math | 25 | | and science instructional programs, including the
acquisition | 26 | | of instructional equipment and materials; miscellaneous |
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| 1 | | capital
improvements for universities and community colleges | 2 | | including the
planning, engineering,
construction, | 3 | | reconstruction, remodeling, improvement, repair and
| 4 | | installation of capital facilities and costs of planning, | 5 | | supplies,
equipment, materials, services, and all other | 6 | | required expenses; the
making of grants or loans for repair, | 7 | | renovation and miscellaneous capital
improvements for | 8 | | privately operated colleges and universities and community
| 9 | | colleges, including the planning, engineering, acquisition, | 10 | | construction,
reconstruction, remodeling,
improvement, repair | 11 | | and installation of capital facilities and costs of
planning, | 12 | | supplies, equipment, materials, services, and all other | 13 | | required
expenses; and the making of grants or loans for | 14 | | distribution to local
governments for hospital and other health | 15 | | care facilities including the
planning, engineering, | 16 | | acquisition, construction, reconstruction,
remodeling, | 17 | | improvement, repair and installation of capital facilities and
| 18 | | costs of planning, supplies, equipment, materials, services | 19 | | and all other
required expenses.
| 20 | | (d) $208,150,900 $150,150,900 for protection, | 21 | | preservation,
restoration and conservation of environmental | 22 | | and natural resources,
including: the making of grants to soil | 23 | | and water conservation districts
for the planning and | 24 | | implementation of conservation practices and for
funding | 25 | | contracts with the Soil Conservation Service for watershed
| 26 | | planning; the making of grants to units of local government for |
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| 1 | | the
capital development and improvement of recreation areas, | 2 | | including
planning and engineering costs, sewer projects, | 3 | | including planning and
engineering costs and water projects, | 4 | | including planning
and engineering costs, and for the | 5 | | acquisition of open space lands,
including the acquisition of | 6 | | easements and other property interests of less
than fee simple | 7 | | ownership; the acquisition and related costs and development
| 8 | | and management of natural heritage lands, including natural | 9 | | areas and areas
providing habitat for
endangered species and | 10 | | nongame wildlife, and buffer area lands; the
acquisition and | 11 | | related costs and development and management of
habitat lands, | 12 | | including forest, wildlife habitat and wetlands;
and the | 13 | | removal and disposition of hazardous substances, including the | 14 | | cost of
project management, equipment, laboratory analysis, | 15 | | and contractual services
necessary for preventative and | 16 | | corrective actions related to the preservation,
restoration | 17 | | and conservation of the environment, including deposits not to
| 18 | | exceed $60,000,000 in the aggregate into the Hazardous Waste | 19 | | Fund and the
Brownfields Redevelopment Fund for improvements in | 20 | | accordance with the
provisions of Titles V and XVII of the | 21 | | Environmental Protection Act.
| 22 | | (e) The amount specified in paragraph (a) above
shall | 23 | | include an amount necessary to pay reasonable expenses of each
| 24 | | issuance and sale of the Bonds, as specified in the related | 25 | | Bond Sale Order
(hereinafter defined).
| 26 | | (f) Any unexpended proceeds from any sale of
Bonds which |
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| 1 | | are held in the Build Illinois Bond Fund may be used to redeem,
| 2 | | purchase, advance refund, or defease any Bonds outstanding.
| 3 | | (Source: P.A. 96-36, eff. 7-13-09; 96-503, eff. 8-14-09; | 4 | | 96-1000, eff. 7-2-10.)
| 5 | | Section 15. The Illinois Pension Code is amended by | 6 | | changing Sections 1-113.14, 2-124, 14-131, 15-155, 16-158, | 7 | | 18-131, and 22A-111 and by adding Section 1-113.15 as follows: | 8 | | (40 ILCS 5/1-113.14)
| 9 | | Sec. 1-113.14. Investment services for retirement systems, | 10 | | pension funds, and investment boards, except those funds | 11 | | established under Articles 3 and 4. | 12 | | (a) For the purposes of this Section, "investment services" | 13 | | means services provided by an investment adviser or a | 14 | | consultant other than qualified fund-of-fund management | 15 | | services as defined in Section 1-113.15 . | 16 | | (b) The selection and appointment of an investment adviser | 17 | | or consultant for investment services by the board of a | 18 | | retirement system, pension fund, or investment board subject to | 19 | | this Code, except those whose investments are restricted by | 20 | | Section 1-113.2, shall be made and awarded in accordance with | 21 | | this Section. All contracts for investment services shall be | 22 | | awarded by the board using a competitive process that is | 23 | | substantially similar to the process required for the | 24 | | procurement of professional and artistic services under |
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| 1 | | Article 35 of the Illinois Procurement Code. Each board of | 2 | | trustees shall adopt a policy in accordance with this | 3 | | subsection (b) within 60 days after the effective date of this | 4 | | amendatory Act of the 96th General Assembly. The policy shall | 5 | | be posted on its web site and filed with the Illinois | 6 | | Procurement Policy Board. Exceptions to this Section are | 7 | | allowed for (i) sole source procurements, (ii) emergency | 8 | | procurements, and (iii) at the discretion of the pension fund, | 9 | | retirement system, or board of investment, contracts that are | 10 | | nonrenewable and one year or less in duration, so long as the | 11 | | contract has a value of less than $20,000.
All exceptions | 12 | | granted under this Section must be published on the system's, | 13 | | fund's, or board's web site, shall name the person authorizing | 14 | | the procurement, and shall include a brief explanation of the | 15 | | reason for the exception. | 16 | | A person, other than a trustee or an employee of a | 17 | | retirement system, pension fund, or investment board, may not | 18 | | act as a consultant or investment adviser under this Section | 19 | | unless that person is registered as an investment adviser under | 20 | | the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, | 21 | | et seq.) or a bank, as defined in the federal Investment | 22 | | Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.). | 23 | | (c) Investment services provided by an investment adviser | 24 | | or a consultant appointed under this Section shall be rendered | 25 | | pursuant to a written contract between the investment adviser | 26 | | or consultant and the board. |
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| 1 | | The contract shall include all of the following: | 2 | | (1) Acknowledgement in writing by the investment | 3 | | adviser or consultant that he or she is a fiduciary with | 4 | | respect to the pension fund or retirement system. | 5 | | (2) The description of the board's investment policy | 6 | | and notice that the policy is subject to change. | 7 | | (3) (i) Full disclosure of direct and indirect fees, | 8 | | commissions, penalties, and other compensation, including | 9 | | reimbursement for expenses, that may be paid by or on | 10 | | behalf of the consultant in connection with the provision | 11 | | of services to the pension fund or retirement system and | 12 | | (ii) a requirement that the consultant update the | 13 | | disclosure promptly after a modification of those payments | 14 | | or an additional payment. | 15 | | (4) A requirement that the investment adviser or | 16 | | consultant, in conjunction with the board's staff, submit | 17 | | periodic written reports, on at least a quarterly basis, | 18 | | for the board's review at its regularly scheduled meetings. | 19 | | All returns on investment shall be reported as net returns | 20 | | after payment of all fees, commissions, and any other | 21 | | compensation. | 22 | | (5) Disclosure of the names and addresses of (i) the | 23 | | consultant or investment adviser; (ii) any entity that is a | 24 | | parent of, or owns a controlling interest in, the | 25 | | consultant or investment adviser; (iii) any entity that is | 26 | | a subsidiary of, or in which a controlling interest is |
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| 1 | | owned by, the consultant or investment adviser; (iv) any | 2 | | persons who have an ownership or distributive income share | 3 | | in the consultant or investment adviser that is in excess | 4 | | of 7.5%; or (v) serves as an executive officer of the | 5 | | consultant or investment adviser. | 6 | | (6) A disclosure of the names and addresses of all | 7 | | subcontractors, if applicable, and the expected amount of | 8 | | money each will receive under the contract, including an | 9 | | acknowledgment that the contractor must promptly make | 10 | | notification, in writing, if at any time during the term of | 11 | | the contract a contractor adds or changes any | 12 | | subcontractors. For purposes of this subparagraph (6), | 13 | | "subcontractor" does not include non-investment related | 14 | | professionals or professionals offering services that are | 15 | | not directly related to the investment of assets, such as | 16 | | legal counsel, actuary, proxy-voting services, services | 17 | | used to track compliance with legal standards, and | 18 | | investment fund of funds where the board has no direct | 19 | | contractual relationship with the investment advisers or | 20 | | partnerships. | 21 | | (7) A description of service to be performed. | 22 | | (8) A description of the need for the service. | 23 | | (9) A description of the plan for post-performance | 24 | | review. | 25 | | (10) A description of the qualifications necessary. | 26 | | (11) The duration of the contract. |
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| 1 | | (12) The method for charging and measuring cost. | 2 | | (d) Notwithstanding any other provision of law, a | 3 | | retirement system, pension fund, or investment board subject to | 4 | | this Code, except those whose investments are restricted by | 5 | | Section 1-113.2 of this Code, shall not enter into a contract | 6 | | with a consultant that exceeds 5 years in duration. No contract | 7 | | to provide consulting services may be renewed or extended. At | 8 | | the end of the term of a contract, however, the consultant is | 9 | | eligible to compete for a new contract as provided in this | 10 | | Section. No retirement system, pension fund, or investment | 11 | | board shall attempt to avoid or contravene the restrictions of | 12 | | this subsection (d) by any means. | 13 | | (e) Within 60 days after the effective date of this | 14 | | amendatory Act of the 96th General Assembly, each investment | 15 | | adviser or consultant currently providing services or subject | 16 | | to an existing contract for the provision of services must | 17 | | disclose to the board of trustees all direct and indirect fees, | 18 | | commissions, penalties, and other compensation paid by or on | 19 | | behalf of the investment adviser or consultant in connection | 20 | | with the provision of those services and shall update that | 21 | | disclosure promptly after a modification of those payments or | 22 | | an additional payment. The person shall update the disclosure | 23 | | promptly after a modification of those payments or an | 24 | | additional payment. The disclosures required by this | 25 | | subsection (e) shall be in writing and shall include the date | 26 | | and amount of each payment and the name and address of each |
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| 1 | | recipient of a payment. | 2 | | (f) The retirement system, pension fund, or board of | 3 | | investment shall develop uniform documents that shall be used | 4 | | for the solicitation, review, and acceptance of all investment | 5 | | services. The form shall include the terms contained in | 6 | | subsection (c) of this Section. All such uniform documents | 7 | | shall be posted on the retirement system's, pension fund's, or | 8 | | investment board's web site. | 9 | | (g) A description of every contract for investment services | 10 | | shall be posted in a conspicuous manner on the web site of the | 11 | | retirement system, pension fund, or investment board. The | 12 | | description must include the name of the person or entity | 13 | | awarded a contract, the total amount applicable to the | 14 | | contract, the total fees paid or to be paid, and a disclosure | 15 | | approved by the board describing the factors that contributed | 16 | | to the selection of an investment adviser or consultant.
| 17 | | (Source: P.A. 96-6, eff. 4-3-09.) | 18 | | (40 ILCS 5/1-113.15 new) | 19 | | Sec. 1-113.15. Qualified fund-of-fund management services. | 20 | | (a) As used in this Section: | 21 | | "Qualified fund-of-fund management services" means either | 22 | | (i) the services of an investment adviser acting in its | 23 | | capacity as an investment manager of a fund-of-funds or (ii) an | 24 | | investment adviser acting in its capacity as an investment | 25 | | manager of a separate account that is invested on a |
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| 1 | | side-by-side basis in a substantially identical manner to a | 2 | | fund-of-funds, in each case pursuant to qualified written | 3 | | agreements. | 4 | | "Qualified written agreements" means one or more written | 5 | | contracts to which the investment adviser and the board are | 6 | | parties and includes all of the following: (i) the matters | 7 | | described in items (1), (4), (5), (7), (11), and (12) of | 8 | | subsection (c) of Section 1-113.14; (ii) a description of any | 9 | | fees, commissions, penalties, and other compensation payable, | 10 | | if any, directly by the retirement system, pension fund, or | 11 | | investment board (which shall not include any fees, | 12 | | commissions, penalties, and other compensation payable from | 13 | | the assets of the fund-of-funds or separate account); (iii) a | 14 | | description (or method of calculation) of the fees and expenses | 15 | | payable by the Fund to the investment adviser and the timing of | 16 | | the payment of the fees or expenses; and (iv) a description (or | 17 | | method of calculation) of any carried interest or other | 18 | | performance based interests, fees, or payments allocable by the | 19 | | Fund to the investment adviser or an affiliate of the | 20 | | investment adviser and the priority of distributions with | 21 | | respect to such interest. | 22 | | (b) A description of every contract for qualified | 23 | | fund-of-fund management services must be posted in a | 24 | | conspicuous manner on the web site of the retirement system, | 25 | | pension fund, or investment board. The description must include | 26 | | the name of the fund-of-funds, the name of its investment |
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| 1 | | adviser, the total investment commitment of the retirement | 2 | | system, pension fund, or investment board to invest in such | 3 | | fund-of-funds, and a disclosure approved by the board | 4 | | describing the factors that contributed to the investment in | 5 | | such fund-of-funds. No information that is exempt from | 6 | | inspection pursuant to Section 7 of the Freedom of Information | 7 | | Act shall be disclosed under this Section.
| 8 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| 9 | | Sec. 2-124. Contributions by State.
| 10 | | (a) The State shall make contributions to the System by
| 11 | | appropriations of amounts which, together with the | 12 | | contributions of
participants, interest earned on investments, | 13 | | and other income
will meet the cost of maintaining and | 14 | | administering the System on a 90%
funded basis in accordance | 15 | | with actuarial recommendations.
| 16 | | (b) The Board shall determine the amount of State
| 17 | | contributions required for each fiscal year on the basis of the
| 18 | | actuarial tables and other assumptions adopted by the Board and | 19 | | the
prescribed rate of interest, using the formula in | 20 | | subsection (c).
| 21 | | (c) For State fiscal years 2011 through 2045, the minimum | 22 | | contribution
to the System to be made by the State for each | 23 | | fiscal year shall be an amount
determined by the System to be | 24 | | sufficient to bring the total assets of the
System up to 90% of | 25 | | the total actuarial liabilities of the System by the end of
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| 1 | | State fiscal year 2045. In making these determinations, the | 2 | | required State
contribution shall be calculated each year as a | 3 | | level percentage of payroll
over the years remaining to and | 4 | | including fiscal year 2045 and shall be
determined under the | 5 | | projected unit credit actuarial cost method.
| 6 | | For State fiscal years 1996 through 2005, the State | 7 | | contribution to
the System, as a percentage of the applicable | 8 | | employee payroll, shall be
increased in equal annual increments | 9 | | so that by State fiscal year 2011, the
State is contributing at | 10 | | the rate required under this Section.
| 11 | | Notwithstanding any other provision of this Article, the | 12 | | total required State
contribution for State fiscal year 2006 is | 13 | | $4,157,000.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State
contribution for State fiscal year 2007 is | 16 | | $5,220,300.
| 17 | | For each of State fiscal years 2008 through 2009, the State | 18 | | contribution to
the System, as a percentage of the applicable | 19 | | employee payroll, shall be
increased in equal annual increments | 20 | | from the required State contribution for State fiscal year | 21 | | 2007, so that by State fiscal year 2011, the
State is | 22 | | contributing at the rate otherwise required under this Section.
| 23 | | Notwithstanding any other provision of this Article, the | 24 | | total required State contribution for State fiscal year 2010 is | 25 | | $10,454,000 and shall be made from the proceeds of bonds sold | 26 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
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| 1 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 2 | | expenses determined by the System's share of total bond | 3 | | proceeds, (ii) any amounts received from the General Revenue | 4 | | Fund in fiscal year 2010, and (iii) any reduction in bond | 5 | | proceeds due to the issuance of discounted bonds, if | 6 | | applicable. | 7 | | Beginning in State fiscal year 2046, the minimum State | 8 | | contribution for
each fiscal year shall be the amount needed to | 9 | | maintain the total assets of
the System at 90% of the total | 10 | | actuarial liabilities of the System.
| 11 | | Amounts received by the System pursuant to Section 25 of | 12 | | the Budget Stabilization Act or Section 8.12 of the State | 13 | | Finance Act in any fiscal year do not reduce and do not | 14 | | constitute payment of any portion of the minimum State | 15 | | contribution required under this Article in that fiscal year. | 16 | | Such amounts shall not reduce, and shall not be included in the | 17 | | calculation of, the required State contributions under this | 18 | | Article in any future year until the System has reached a | 19 | | funding ratio of at least 90%. A reference in this Article to | 20 | | the "required State contribution" or any substantially similar | 21 | | term does not include or apply to any amounts payable to the | 22 | | System under Section 25 of the Budget Stabilization Act.
| 23 | | Notwithstanding any other provision of this Section, the | 24 | | required State
contribution for State fiscal year 2005 and for | 25 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 26 | | under this Section and
certified under Section 2-134, shall not |
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| 1 | | exceed an amount equal to (i) the
amount of the required State | 2 | | contribution that would have been calculated under
this Section | 3 | | for that fiscal year if the System had not received any | 4 | | payments
under subsection (d) of Section 7.2 of the General | 5 | | Obligation Bond Act, minus
(ii) the portion of the State's | 6 | | total debt service payments for that fiscal
year on the bonds | 7 | | issued in fiscal year 2003 for the purposes of that Section | 8 | | 7.2, as determined
and certified by the Comptroller, that is | 9 | | the same as the System's portion of
the total moneys | 10 | | distributed under subsection (d) of Section 7.2 of the General
| 11 | | Obligation Bond Act. In determining this maximum for State | 12 | | fiscal years 2008 through 2010, however, the amount referred to | 13 | | in item (i) shall be increased, as a percentage of the | 14 | | applicable employee payroll, in equal increments calculated | 15 | | from the sum of the required State contribution for State | 16 | | fiscal year 2007 plus the applicable portion of the State's | 17 | | total debt service payments for fiscal year 2007 on the bonds | 18 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 19 | | the General
Obligation Bond Act, so that, by State fiscal year | 20 | | 2011, the
State is contributing at the rate otherwise required | 21 | | under this Section.
| 22 | | (d) For purposes of determining the required State | 23 | | contribution to the System, the value of the System's assets | 24 | | shall be equal to the actuarial value of the System's assets, | 25 | | which shall be calculated as follows: | 26 | | As of June 30, 2008, the actuarial value of the System's |
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| 1 | | assets shall be equal to the market value of the assets as of | 2 | | that date. In determining the actuarial value of the System's | 3 | | assets for fiscal years after June 30, 2008, any actuarial | 4 | | gains or losses from investment return incurred in a fiscal | 5 | | year shall be recognized in equal annual amounts over the | 6 | | 5-year period following that fiscal year. | 7 | | (e) For purposes of determining the required State | 8 | | contribution to the system for a particular year, the actuarial | 9 | | value of assets shall be assumed to earn a rate of return equal | 10 | | to the system's actuarially assumed rate of return. | 11 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
| 12 | | (40 ILCS 5/14-131)
| 13 | | Sec. 14-131. Contributions by State.
| 14 | | (a) The State shall make contributions to the System by | 15 | | appropriations of
amounts which, together with other employer | 16 | | contributions from trust, federal,
and other funds, employee | 17 | | contributions, investment income, and other income,
will be | 18 | | sufficient to meet the cost of maintaining and administering | 19 | | the System
on a 90% funded basis in accordance with actuarial | 20 | | recommendations.
| 21 | | For the purposes of this Section and Section 14-135.08, | 22 | | references to State
contributions refer only to employer | 23 | | contributions and do not include employee
contributions that | 24 | | are picked up or otherwise paid by the State or a
department on | 25 | | behalf of the employee.
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| 1 | | (b) The Board shall determine the total amount of State | 2 | | contributions
required for each fiscal year on the basis of the | 3 | | actuarial tables and other
assumptions adopted by the Board, | 4 | | using the formula in subsection (e).
| 5 | | The Board shall also determine a State contribution rate | 6 | | for each fiscal
year, expressed as a percentage of payroll, | 7 | | based on the total required State
contribution for that fiscal | 8 | | year (less the amount received by the System from
| 9 | | appropriations under Section 8.12 of the State Finance Act and | 10 | | Section 1 of the
State Pension Funds Continuing Appropriation | 11 | | Act, if any, for the fiscal year
ending on the June 30 | 12 | | immediately preceding the applicable November 15
certification | 13 | | deadline), the estimated payroll (including all forms of
| 14 | | compensation) for personal services rendered by eligible | 15 | | employees, and the
recommendations of the actuary.
| 16 | | For the purposes of this Section and Section 14.1 of the | 17 | | State Finance Act,
the term "eligible employees" includes | 18 | | employees who participate in the System,
persons who may elect | 19 | | to participate in the System but have not so elected,
persons | 20 | | who are serving a qualifying period that is required for | 21 | | participation,
and annuitants employed by a department as | 22 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 23 | | (c) Contributions shall be made by the several departments | 24 | | for each pay
period by warrants drawn by the State Comptroller | 25 | | against their respective
funds or appropriations based upon | 26 | | vouchers stating the amount to be so
contributed. These amounts |
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| 1 | | shall be based on the full rate certified by the
Board under | 2 | | Section 14-135.08 for that fiscal year.
From the effective date | 3 | | of this amendatory Act of the 93rd General
Assembly through the | 4 | | payment of the final payroll from fiscal year 2004
| 5 | | appropriations, the several departments shall not make | 6 | | contributions
for the remainder of fiscal year 2004 but shall | 7 | | instead make payments
as required under subsection (a-1) of | 8 | | Section 14.1 of the State Finance Act.
The several departments | 9 | | shall resume those contributions at the commencement of
fiscal | 10 | | year 2005.
| 11 | | (c-1) Notwithstanding subsection (c) of this Section, for | 12 | | fiscal year 2010 only, contributions by the several departments | 13 | | are not required to be made for General Revenue Funds payrolls | 14 | | processed by the Comptroller. Payrolls paid by the several | 15 | | departments from all other State funds must continue to be | 16 | | processed pursuant to subsection (c) of this Section. | 17 | | (c-2) For State fiscal year 2010 only, on or as soon as | 18 | | possible after the 15th day of each month the Board shall | 19 | | submit vouchers for payment of State contributions to the | 20 | | System, in a total monthly amount of one-twelfth of the fiscal | 21 | | year 2010 General Revenue Fund appropriation to the System. | 22 | | (d) If an employee is paid from trust funds or federal | 23 | | funds, the
department or other employer shall pay employer | 24 | | contributions from those funds
to the System at the certified | 25 | | rate, unless the terms of the trust or the
federal-State | 26 | | agreement preclude the use of the funds for that purpose, in
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| 1 | | which case the required employer contributions shall be paid by | 2 | | the State.
From the effective date of this amendatory
Act of | 3 | | the 93rd General Assembly through the payment of the final
| 4 | | payroll from fiscal year 2004 appropriations, the department or | 5 | | other
employer shall not pay contributions for the remainder of | 6 | | fiscal year
2004 but shall instead make payments as required | 7 | | under subsection (a-1) of
Section 14.1 of the State Finance | 8 | | Act. The department or other employer shall
resume payment of
| 9 | | contributions at the commencement of fiscal year 2005.
| 10 | | (e) For State fiscal years 2011 through 2045, the minimum | 11 | | contribution
to the System to be made by the State for each | 12 | | fiscal year shall be an amount
determined by the System to be | 13 | | sufficient to bring the total assets of the
System up to 90% of | 14 | | the total actuarial liabilities of the System by the end
of | 15 | | State fiscal year 2045. In making these determinations, the | 16 | | required State
contribution shall be calculated each year as a | 17 | | level percentage of payroll
over the years remaining to and | 18 | | including fiscal year 2045 and shall be
determined under the | 19 | | projected unit credit actuarial cost method.
| 20 | | For State fiscal years 1996 through 2005, the State | 21 | | contribution to
the System, as a percentage of the applicable | 22 | | employee payroll, shall be
increased in equal annual increments | 23 | | so that by State fiscal year 2011, the
State is contributing at | 24 | | the rate required under this Section; except that
(i) for State | 25 | | fiscal year 1998, for all purposes of this Code and any other
| 26 | | law of this State, the certified percentage of the applicable |
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| 1 | | employee payroll
shall be 5.052% for employees earning eligible | 2 | | creditable service under Section
14-110 and 6.500% for all | 3 | | other employees, notwithstanding any contrary
certification | 4 | | made under Section 14-135.08 before the effective date of this
| 5 | | amendatory Act of 1997, and (ii)
in the following specified | 6 | | State fiscal years, the State contribution to
the System shall | 7 | | not be less than the following indicated percentages of the
| 8 | | applicable employee payroll, even if the indicated percentage | 9 | | will produce a
State contribution in excess of the amount | 10 | | otherwise required under this
subsection and subsection (a):
| 11 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 12 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State
contribution to the System for State | 15 | | fiscal year 2006 is $203,783,900.
| 16 | | Notwithstanding any other provision of this Article, the | 17 | | total required State
contribution to the System for State | 18 | | fiscal year 2007 is $344,164,400.
| 19 | | For each of State fiscal years 2008 through 2009, the State | 20 | | contribution to
the System, as a percentage of the applicable | 21 | | employee payroll, shall be
increased in equal annual increments | 22 | | from the required State contribution for State fiscal year | 23 | | 2007, so that by State fiscal year 2011, the
State is | 24 | | contributing at the rate otherwise required under this Section.
| 25 | | Notwithstanding any other provision of this Article, the | 26 | | total required State General Revenue Fund contribution for |
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| 1 | | State fiscal year 2010 is $723,703,100 and shall be made from | 2 | | the proceeds of bonds sold in fiscal year 2010 pursuant to | 3 | | Section 7.2 of the General Obligation Bond Act, less (i) the | 4 | | pro rata share of bond sale expenses determined by the System's | 5 | | share of total bond proceeds, (ii) any amounts received from | 6 | | the General Revenue Fund in fiscal year 2010, and (iii) any | 7 | | reduction in bond proceeds due to the issuance of discounted | 8 | | bonds, if applicable. | 9 | | Beginning in State fiscal year 2046, the minimum State | 10 | | contribution for
each fiscal year shall be the amount needed to | 11 | | maintain the total assets of
the System at 90% of the total | 12 | | actuarial liabilities of the System.
| 13 | | Amounts received by the System pursuant to Section 25 of | 14 | | the Budget Stabilization Act or Section 8.12 of the State | 15 | | Finance Act in any fiscal year do not reduce and do not | 16 | | constitute payment of any portion of the minimum State | 17 | | contribution required under this Article in that fiscal year. | 18 | | Such amounts shall not reduce, and shall not be included in the | 19 | | calculation of, the required State contributions under this | 20 | | Article in any future year until the System has reached a | 21 | | funding ratio of at least 90%. A reference in this Article to | 22 | | the "required State contribution" or any substantially similar | 23 | | term does not include or apply to any amounts payable to the | 24 | | System under Section 25 of the Budget Stabilization Act.
| 25 | | Notwithstanding any other provision of this Section, the | 26 | | required State
contribution for State fiscal year 2005 and for |
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| 1 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 2 | | under this Section and
certified under Section 14-135.08, shall | 3 | | not exceed an amount equal to (i) the
amount of the required | 4 | | State contribution that would have been calculated under
this | 5 | | Section for that fiscal year if the System had not received any | 6 | | payments
under subsection (d) of Section 7.2 of the General | 7 | | Obligation Bond Act, minus
(ii) the portion of the State's | 8 | | total debt service payments for that fiscal
year on the bonds | 9 | | issued in fiscal year 2003 for the purposes of that Section | 10 | | 7.2, as determined
and certified by the Comptroller, that is | 11 | | the same as the System's portion of
the total moneys | 12 | | distributed under subsection (d) of Section 7.2 of the General
| 13 | | Obligation Bond Act. In determining this maximum for State | 14 | | fiscal years 2008 through 2010, however, the amount referred to | 15 | | in item (i) shall be increased, as a percentage of the | 16 | | applicable employee payroll, in equal increments calculated | 17 | | from the sum of the required State contribution for State | 18 | | fiscal year 2007 plus the applicable portion of the State's | 19 | | total debt service payments for fiscal year 2007 on the bonds | 20 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 21 | | the General
Obligation Bond Act, so that, by State fiscal year | 22 | | 2011, the
State is contributing at the rate otherwise required | 23 | | under this Section.
| 24 | | (f) After the submission of all payments for eligible | 25 | | employees
from personal services line items in fiscal year 2004 | 26 | | have been made,
the Comptroller shall provide to the System a |
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| 1 | | certification of the sum
of all fiscal year 2004 expenditures | 2 | | for personal services that would
have been covered by payments | 3 | | to the System under this Section if the
provisions of this | 4 | | amendatory Act of the 93rd General Assembly had not been
| 5 | | enacted. Upon
receipt of the certification, the System shall | 6 | | determine the amount
due to the System based on the full rate | 7 | | certified by the Board under
Section 14-135.08 for fiscal year | 8 | | 2004 in order to meet the State's
obligation under this | 9 | | Section. The System shall compare this amount
due to the amount | 10 | | received by the System in fiscal year 2004 through
payments | 11 | | under this Section and under Section 6z-61 of the State Finance | 12 | | Act.
If the amount
due is more than the amount received, the | 13 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 14 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall | 15 | | shall be satisfied under Section 1.2 of the State
Pension Funds | 16 | | Continuing Appropriation Act. If the amount due is less than | 17 | | the
amount received, the
difference shall be termed the "Fiscal | 18 | | Year 2004 Overpayment" for purposes of
this Section, and the | 19 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to | 20 | | the Pension Contribution Fund as soon as practicable
after the | 21 | | certification.
| 22 | | (g) For purposes of determining the required State | 23 | | contribution to the System, the value of the System's assets | 24 | | shall be equal to the actuarial value of the System's assets, | 25 | | which shall be calculated as follows: | 26 | | As of June 30, 2008, the actuarial value of the System's |
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| 1 | | assets shall be equal to the market value of the assets as of | 2 | | that date. In determining the actuarial value of the System's | 3 | | assets for fiscal years after June 30, 2008, any actuarial | 4 | | gains or losses from investment return incurred in a fiscal | 5 | | year shall be recognized in equal annual amounts over the | 6 | | 5-year period following that fiscal year. | 7 | | (h) For purposes of determining the required State | 8 | | contribution to the System for a particular year, the actuarial | 9 | | value of assets shall be assumed to earn a rate of return equal | 10 | | to the System's actuarially assumed rate of return. | 11 | | (i) After the submission of all payments for eligible | 12 | | employees from personal services line items paid from the | 13 | | General Revenue Fund in fiscal year 2010 have been made, the | 14 | | Comptroller shall provide to the System a certification of the | 15 | | sum of all fiscal year 2010 expenditures for personal services | 16 | | that would have been covered by payments to the System under | 17 | | this Section if the provisions of this amendatory Act of the | 18 | | 96th General Assembly had not been enacted. Upon receipt of the | 19 | | certification, the System shall determine the amount due to the | 20 | | System based on the full rate certified by the Board under | 21 | | Section 14-135.08 for fiscal year 2010 in order to meet the | 22 | | State's obligation under this Section. The System shall compare | 23 | | this amount due to the amount received by the System in fiscal | 24 | | year 2010 through payments under this Section. If the amount | 25 | | due is more than the amount received, the difference shall be | 26 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
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| 1 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | 2 | | under Section 1.2 of the State Pension Funds Continuing | 3 | | Appropriation Act. If the amount due is less than the amount | 4 | | received, the difference shall be termed the "Fiscal Year 2010 | 5 | | Overpayment" for purposes of this Section, and the Fiscal Year | 6 | | 2010 Overpayment shall be repaid by the System to the General | 7 | | Revenue Fund as soon as practicable after the certification. | 8 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45, | 9 | | eff. 7-15-09; 96-1000, eff. 7-2-10.)
| 10 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 11 | | Sec. 15-155. Employer contributions.
| 12 | | (a) The State of Illinois shall make contributions by | 13 | | appropriations of
amounts which, together with the other | 14 | | employer contributions from trust,
federal, and other funds, | 15 | | employee contributions, income from investments,
and other | 16 | | income of this System, will be sufficient to meet the cost of
| 17 | | maintaining and administering the System on a 90% funded basis | 18 | | in accordance
with actuarial recommendations.
| 19 | | The Board shall determine the amount of State contributions | 20 | | required for
each fiscal year on the basis of the actuarial | 21 | | tables and other assumptions
adopted by the Board and the | 22 | | recommendations of the actuary, using the formula
in subsection | 23 | | (a-1).
| 24 | | (a-1) For State fiscal years 2011 through 2045, the minimum | 25 | | contribution
to the System to be made by the State for each |
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| 1 | | fiscal year shall be an amount
determined by the System to be | 2 | | sufficient to bring the total assets of the
System up to 90% of | 3 | | the total actuarial liabilities of the System by the end of
| 4 | | State fiscal year 2045. In making these determinations, the | 5 | | required State
contribution shall be calculated each year as a | 6 | | level percentage of payroll
over the years remaining to and | 7 | | including fiscal year 2045 and shall be
determined under the | 8 | | projected unit credit actuarial cost method.
| 9 | | For State fiscal years 1996 through 2005, the State | 10 | | contribution to
the System, as a percentage of the applicable | 11 | | employee payroll, shall be
increased in equal annual increments | 12 | | so that by State fiscal year 2011, the
State is contributing at | 13 | | the rate required under this Section.
| 14 | | Notwithstanding any other provision of this Article, the | 15 | | total required State
contribution for State fiscal year 2006 is | 16 | | $166,641,900.
| 17 | | Notwithstanding any other provision of this Article, the | 18 | | total required State
contribution for State fiscal year 2007 is | 19 | | $252,064,100.
| 20 | | For each of State fiscal years 2008 through 2009, the State | 21 | | contribution to
the System, as a percentage of the applicable | 22 | | employee payroll, shall be
increased in equal annual increments | 23 | | from the required State contribution for State fiscal year | 24 | | 2007, so that by State fiscal year 2011, the
State is | 25 | | contributing at the rate otherwise required under this Section.
| 26 | | Notwithstanding any other provision of this Article, the |
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| 1 | | total required State contribution for State fiscal year 2010 is | 2 | | $702,514,000 and shall be made from the State Pensions Fund and | 3 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 4 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 5 | | share of bond sale expenses determined by the System's share of | 6 | | total bond proceeds, (ii) any amounts received from the General | 7 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 8 | | proceeds due to the issuance of discounted bonds, if | 9 | | applicable. | 10 | | Beginning in State fiscal year 2046, the minimum State | 11 | | contribution for
each fiscal year shall be the amount needed to | 12 | | maintain the total assets of
the System at 90% of the total | 13 | | actuarial liabilities of the System.
| 14 | | Amounts received by the System pursuant to Section 25 of | 15 | | the Budget Stabilization Act or Section 8.12 of the State | 16 | | Finance Act in any fiscal year do not reduce and do not | 17 | | constitute payment of any portion of the minimum State | 18 | | contribution required under this Article in that fiscal year. | 19 | | Such amounts shall not reduce, and shall not be included in the | 20 | | calculation of, the required State contributions under this | 21 | | Article in any future year until the System has reached a | 22 | | funding ratio of at least 90%. A reference in this Article to | 23 | | the "required State contribution" or any substantially similar | 24 | | term does not include or apply to any amounts payable to the | 25 | | System under Section 25 of the Budget Stabilization Act. | 26 | | Notwithstanding any other provision of this Section, the |
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| 1 | | required State
contribution for State fiscal year 2005 and for | 2 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 3 | | under this Section and
certified under Section 15-165, shall | 4 | | not exceed an amount equal to (i) the
amount of the required | 5 | | State contribution that would have been calculated under
this | 6 | | Section for that fiscal year if the System had not received any | 7 | | payments
under subsection (d) of Section 7.2 of the General | 8 | | Obligation Bond Act, minus
(ii) the portion of the State's | 9 | | total debt service payments for that fiscal
year on the bonds | 10 | | issued in fiscal year 2003 for the purposes of that Section | 11 | | 7.2, as determined
and certified by the Comptroller, that is | 12 | | the same as the System's portion of
the total moneys | 13 | | distributed under subsection (d) of Section 7.2 of the General
| 14 | | Obligation Bond Act. In determining this maximum for State | 15 | | fiscal years 2008 through 2010, however, the amount referred to | 16 | | in item (i) shall be increased, as a percentage of the | 17 | | applicable employee payroll, in equal increments calculated | 18 | | from the sum of the required State contribution for State | 19 | | fiscal year 2007 plus the applicable portion of the State's | 20 | | total debt service payments for fiscal year 2007 on the bonds | 21 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 22 | | the General
Obligation Bond Act, so that, by State fiscal year | 23 | | 2011, the
State is contributing at the rate otherwise required | 24 | | under this Section.
| 25 | | (b) If an employee is paid from trust or federal funds, the | 26 | | employer
shall pay to the Board contributions from those funds |
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| 1 | | which are
sufficient to cover the accruing normal costs on | 2 | | behalf of the employee.
However, universities having employees | 3 | | who are compensated out of local
auxiliary funds, income funds, | 4 | | or service enterprise funds are not required
to pay such | 5 | | contributions on behalf of those employees. The local auxiliary
| 6 | | funds, income funds, and service enterprise funds of | 7 | | universities shall not be
considered trust funds for the | 8 | | purpose of this Article, but funds of alumni
associations, | 9 | | foundations, and athletic associations which are affiliated | 10 | | with
the universities included as employers under this Article | 11 | | and other employers
which do not receive State appropriations | 12 | | are considered to be trust funds for
the purpose of this | 13 | | Article.
| 14 | | (b-1) The City of Urbana and the City of Champaign shall | 15 | | each make
employer contributions to this System for their | 16 | | respective firefighter
employees who participate in this | 17 | | System pursuant to subsection (h) of Section
15-107. The rate | 18 | | of contributions to be made by those municipalities shall
be | 19 | | determined annually by the Board on the basis of the actuarial | 20 | | assumptions
adopted by the Board and the recommendations of the | 21 | | actuary, and shall be
expressed as a percentage of salary for | 22 | | each such employee. The Board shall
certify the rate to the | 23 | | affected municipalities as soon as may be practical.
The | 24 | | employer contributions required under this subsection shall be | 25 | | remitted by
the municipality to the System at the same time and | 26 | | in the same manner as
employee contributions.
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| 1 | | (c) Through State fiscal year 1995: The total employer | 2 | | contribution shall
be apportioned among the various funds of | 3 | | the State and other employers,
whether trust, federal, or other | 4 | | funds, in accordance with actuarial procedures
approved by the | 5 | | Board. State of Illinois contributions for employers receiving
| 6 | | State appropriations for personal services shall be payable | 7 | | from appropriations
made to the employers or to the System. The | 8 | | contributions for Class I
community colleges covering earnings | 9 | | other than those paid from trust and
federal funds, shall be | 10 | | payable solely from appropriations to the Illinois
Community | 11 | | College Board or the System for employer contributions.
| 12 | | (d) Beginning in State fiscal year 1996, the required State | 13 | | contributions
to the System shall be appropriated directly to | 14 | | the System and shall be payable
through vouchers issued in | 15 | | accordance with subsection (c) of Section 15-165, except as | 16 | | provided in subsection (g).
| 17 | | (e) The State Comptroller shall draw warrants payable to | 18 | | the System upon
proper certification by the System or by the | 19 | | employer in accordance with the
appropriation laws and this | 20 | | Code.
| 21 | | (f) Normal costs under this Section means liability for
| 22 | | pensions and other benefits which accrues to the System because | 23 | | of the
credits earned for service rendered by the participants | 24 | | during the
fiscal year and expenses of administering the | 25 | | System, but shall not
include the principal of or any | 26 | | redemption premium or interest on any bonds
issued by the Board |
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| 1 | | or any expenses incurred or deposits required in
connection | 2 | | therewith.
| 3 | | (g) If the amount of a participant's earnings for any | 4 | | academic year used to determine the final rate of earnings, | 5 | | determined on a full-time equivalent basis, exceeds the amount | 6 | | of his or her earnings with the same employer for the previous | 7 | | academic year, determined on a full-time equivalent basis, by | 8 | | more than 6%, the participant's employer shall pay to the | 9 | | System, in addition to all other payments required under this | 10 | | Section and in accordance with guidelines established by the | 11 | | System, the present value of the increase in benefits resulting | 12 | | from the portion of the increase in earnings that is in excess | 13 | | of 6%. This present value shall be computed by the System on | 14 | | the basis of the actuarial assumptions and tables used in the | 15 | | most recent actuarial valuation of the System that is available | 16 | | at the time of the computation. The System may require the | 17 | | employer to provide any pertinent information or | 18 | | documentation. | 19 | | Whenever it determines that a payment is or may be required | 20 | | under this subsection (g), the System shall calculate the | 21 | | amount of the payment and bill the employer for that amount. | 22 | | The bill shall specify the calculations used to determine the | 23 | | amount due. If the employer disputes the amount of the bill, it | 24 | | may, within 30 days after receipt of the bill, apply to the | 25 | | System in writing for a recalculation. The application must | 26 | | specify in detail the grounds of the dispute and, if the |
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| 1 | | employer asserts that the calculation is subject to subsection | 2 | | (h) or (i) of this Section, must include an affidavit setting | 3 | | forth and attesting to all facts within the employer's | 4 | | knowledge that are pertinent to the applicability of subsection | 5 | | (h) or (i). Upon receiving a timely application for | 6 | | recalculation, the System shall review the application and, if | 7 | | appropriate, recalculate the amount due.
| 8 | | The employer contributions required under this subsection | 9 | | (f) may be paid in the form of a lump sum within 90 days after | 10 | | receipt of the bill. If the employer contributions are not paid | 11 | | within 90 days after receipt of the bill, then interest will be | 12 | | charged at a rate equal to the System's annual actuarially | 13 | | assumed rate of return on investment compounded annually from | 14 | | the 91st day after receipt of the bill. Payments must be | 15 | | concluded within 3 years after the employer's receipt of the | 16 | | bill. | 17 | | (h) This subsection (h) applies only to payments made or | 18 | | salary increases given on or after June 1, 2005 but before July | 19 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 20 | | require the System to refund any payments received before July | 21 | | 31, 2006 (the effective date of Public Act 94-1057). | 22 | | When assessing payment for any amount due under subsection | 23 | | (g), the System shall exclude earnings increases paid to | 24 | | participants under contracts or collective bargaining | 25 | | agreements entered into, amended, or renewed before June 1, | 26 | | 2005.
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| 1 | | When assessing payment for any amount due under subsection | 2 | | (g), the System shall exclude earnings increases paid to a | 3 | | participant at a time when the participant is 10 or more years | 4 | | from retirement eligibility under Section 15-135.
| 5 | | When assessing payment for any amount due under subsection | 6 | | (g), the System shall exclude earnings increases resulting from | 7 | | overload work, including a contract for summer teaching, or | 8 | | overtime when the employer has certified to the System, and the | 9 | | System has approved the certification, that: (i) in the case of | 10 | | overloads (A) the overload work is for the sole purpose of | 11 | | academic instruction in excess of the standard number of | 12 | | instruction hours for a full-time employee occurring during the | 13 | | academic year that the overload is paid and (B) the earnings | 14 | | increases are equal to or less than the rate of pay for | 15 | | academic instruction computed using the participant's current | 16 | | salary rate and work schedule; and (ii) in the case of | 17 | | overtime, the overtime was necessary for the educational | 18 | | mission. | 19 | | When assessing payment for any amount due under subsection | 20 | | (g), the System shall exclude any earnings increase resulting | 21 | | from (i) a promotion for which the employee moves from one | 22 | | classification to a higher classification under the State | 23 | | Universities Civil Service System, (ii) a promotion in academic | 24 | | rank for a tenured or tenure-track faculty position, or (iii) a | 25 | | promotion that the Illinois Community College Board has | 26 | | recommended in accordance with subsection (k) of this Section. |
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| 1 | | These earnings increases shall be excluded only if the | 2 | | promotion is to a position that has existed and been filled by | 3 | | a member for no less than one complete academic year and the | 4 | | earnings increase as a result of the promotion is an increase | 5 | | that results in an amount no greater than the average salary | 6 | | paid for other similar positions. | 7 | | (i) When assessing payment for any amount due under | 8 | | subsection (g), the System shall exclude any salary increase | 9 | | described in subsection (h) of this Section given on or after | 10 | | July 1, 2011 but before July 1, 2014 under a contract or | 11 | | collective bargaining agreement entered into, amended, or | 12 | | renewed on or after June 1, 2005 but before July 1, 2011. | 13 | | Notwithstanding any other provision of this Section, any | 14 | | payments made or salary increases given after June 30, 2014 | 15 | | shall be used in assessing payment for any amount due under | 16 | | subsection (g) of this Section.
| 17 | | (j) The System shall prepare a report and file copies of | 18 | | the report with the Governor and the General Assembly by | 19 | | January 1, 2007 that contains all of the following information: | 20 | | (1) The number of recalculations required by the | 21 | | changes made to this Section by Public Act 94-1057 for each | 22 | | employer. | 23 | | (2) The dollar amount by which each employer's | 24 | | contribution to the System was changed due to | 25 | | recalculations required by Public Act 94-1057. | 26 | | (3) The total amount the System received from each |
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| 1 | | employer as a result of the changes made to this Section by | 2 | | Public Act 94-4. | 3 | | (4) The increase in the required State contribution | 4 | | resulting from the changes made to this Section by Public | 5 | | Act 94-1057. | 6 | | (k) The Illinois Community College Board shall adopt rules | 7 | | for recommending lists of promotional positions submitted to | 8 | | the Board by community colleges and for reviewing the | 9 | | promotional lists on an annual basis. When recommending | 10 | | promotional lists, the Board shall consider the similarity of | 11 | | the positions submitted to those positions recognized for State | 12 | | universities by the State Universities Civil Service System. | 13 | | The Illinois Community College Board shall file a copy of its | 14 | | findings with the System. The System shall consider the | 15 | | findings of the Illinois Community College Board when making | 16 | | determinations under this Section. The System shall not exclude | 17 | | any earnings increases resulting from a promotion when the | 18 | | promotion was not submitted by a community college. Nothing in | 19 | | this subsection (k) shall require any community college to | 20 | | submit any information to the Community College Board.
| 21 | | (l) For purposes of determining the required State | 22 | | contribution to the System, the value of the System's assets | 23 | | shall be equal to the actuarial value of the System's assets, | 24 | | which shall be calculated as follows: | 25 | | As of June 30, 2008, the actuarial value of the System's | 26 | | assets shall be equal to the market value of the assets as of |
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| 1 | | that date. In determining the actuarial value of the System's | 2 | | assets for fiscal years after June 30, 2008, any actuarial | 3 | | gains or losses from investment return incurred in a fiscal | 4 | | year shall be recognized in equal annual amounts over the | 5 | | 5-year period following that fiscal year. | 6 | | (m) For purposes of determining the required State | 7 | | contribution to the system for a particular year, the actuarial | 8 | | value of assets shall be assumed to earn a rate of return equal | 9 | | to the system's actuarially assumed rate of return. | 10 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 11 | | 96-43, eff. 7-15-09.)
| 12 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| 13 | | Sec. 16-158. Contributions by State and other employing | 14 | | units.
| 15 | | (a) The State shall make contributions to the System by | 16 | | means of
appropriations from the Common School Fund and other | 17 | | State funds of amounts
which, together with other employer | 18 | | contributions, employee contributions,
investment income, and | 19 | | other income, will be sufficient to meet the cost of
| 20 | | maintaining and administering the System on a 90% funded basis | 21 | | in accordance
with actuarial recommendations.
| 22 | | The Board shall determine the amount of State contributions | 23 | | required for
each fiscal year on the basis of the actuarial | 24 | | tables and other assumptions
adopted by the Board and the | 25 | | recommendations of the actuary, using the formula
in subsection |
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| 1 | | (b-3).
| 2 | | (a-1) Annually, on or before November 15, the Board shall | 3 | | certify to the
Governor the amount of the required State | 4 | | contribution for the coming fiscal
year. The certification | 5 | | shall include a copy of the actuarial recommendations
upon | 6 | | which it is based.
| 7 | | On or before May 1, 2004, the Board shall recalculate and | 8 | | recertify to
the Governor the amount of the required State | 9 | | contribution to the System for
State fiscal year 2005, taking | 10 | | into account the amounts appropriated to and
received by the | 11 | | System under subsection (d) of Section 7.2 of the General
| 12 | | Obligation Bond Act.
| 13 | | On or before July 1, 2005, the Board shall recalculate and | 14 | | recertify
to the Governor the amount of the required State
| 15 | | contribution to the System for State fiscal year 2006, taking | 16 | | into account the changes in required State contributions made | 17 | | by this amendatory Act of the 94th General Assembly.
| 18 | | (b) Through State fiscal year 1995, the State contributions | 19 | | shall be
paid to the System in accordance with Section 18-7 of | 20 | | the School Code.
| 21 | | (b-1) Beginning in State fiscal year 1996, on the 15th day | 22 | | of each month,
or as soon thereafter as may be practicable, the | 23 | | Board shall submit vouchers
for payment of State contributions | 24 | | to the System, in a total monthly amount of
one-twelfth of the | 25 | | required annual State contribution certified under
subsection | 26 | | (a-1).
From the
effective date of this amendatory Act of the |
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| 1 | | 93rd General Assembly
through June 30, 2004, the Board shall | 2 | | not submit vouchers for the
remainder of fiscal year 2004 in | 3 | | excess of the fiscal year 2004
certified contribution amount | 4 | | determined under this Section
after taking into consideration | 5 | | the transfer to the System
under subsection (a) of Section | 6 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by | 7 | | the State Comptroller and
Treasurer by warrants drawn on the | 8 | | funds appropriated to the System for that
fiscal year.
| 9 | | If in any month the amount remaining unexpended from all | 10 | | other appropriations
to the System for the applicable fiscal | 11 | | year (including the appropriations to
the System under Section | 12 | | 8.12 of the State Finance Act and Section 1 of the
State | 13 | | Pension Funds Continuing Appropriation Act) is less than the | 14 | | amount
lawfully vouchered under this subsection, the | 15 | | difference shall be paid from the
Common School Fund under the | 16 | | continuing appropriation authority provided in
Section 1.1 of | 17 | | the State Pension Funds Continuing Appropriation Act.
| 18 | | (b-2) Allocations from the Common School Fund apportioned | 19 | | to school
districts not coming under this System shall not be | 20 | | diminished or affected by
the provisions of this Article.
| 21 | | (b-3) For State fiscal years 2011 through 2045, the minimum | 22 | | contribution
to the System to be made by the State for each | 23 | | fiscal year shall be an amount
determined by the System to be | 24 | | sufficient to bring the total assets of the
System up to 90% of | 25 | | the total actuarial liabilities of the System by the end of
| 26 | | State fiscal year 2045. In making these determinations, the |
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| 1 | | required State
contribution shall be calculated each year as a | 2 | | level percentage of payroll
over the years remaining to and | 3 | | including fiscal year 2045 and shall be
determined under the | 4 | | projected unit credit actuarial cost method.
| 5 | | For State fiscal years 1996 through 2005, the State | 6 | | contribution to the
System, as a percentage of the applicable | 7 | | employee payroll, shall be increased
in equal annual increments | 8 | | so that by State fiscal year 2011, the State is
contributing at | 9 | | the rate required under this Section; except that in the
| 10 | | following specified State fiscal years, the State contribution | 11 | | to the System
shall not be less than the following indicated | 12 | | percentages of the applicable
employee payroll, even if the | 13 | | indicated percentage will produce a State
contribution in | 14 | | excess of the amount otherwise required under this subsection
| 15 | | and subsection (a), and notwithstanding any contrary | 16 | | certification made under
subsection (a-1) before the effective | 17 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | 18 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | 19 | | 2003; and
13.56% in FY 2004.
| 20 | | Notwithstanding any other provision of this Article, the | 21 | | total required State
contribution for State fiscal year 2006 is | 22 | | $534,627,700.
| 23 | | Notwithstanding any other provision of this Article, the | 24 | | total required State
contribution for State fiscal year 2007 is | 25 | | $738,014,500.
| 26 | | For each of State fiscal years 2008 through 2009, the State |
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| 1 | | contribution to
the System, as a percentage of the applicable | 2 | | employee payroll, shall be
increased in equal annual increments | 3 | | from the required State contribution for State fiscal year | 4 | | 2007, so that by State fiscal year 2011, the
State is | 5 | | contributing at the rate otherwise required under this Section.
| 6 | | Notwithstanding any other provision of this Article, the | 7 | | total required State contribution for State fiscal year 2010 is | 8 | | $2,089,268,000 and shall be made from the proceeds of bonds | 9 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General | 10 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 11 | | expenses determined by the System's share of total bond | 12 | | proceeds, (ii) any amounts received from the Common School Fund | 13 | | in fiscal year 2010, and (iii) any reduction in bond proceeds | 14 | | due to the issuance of discounted bonds, if applicable. | 15 | | Beginning in State fiscal year 2046, the minimum State | 16 | | contribution for
each fiscal year shall be the amount needed to | 17 | | maintain the total assets of
the System at 90% of the total | 18 | | actuarial liabilities of the System.
| 19 | | Amounts received by the System pursuant to Section 25 of | 20 | | the Budget Stabilization Act or Section 8.12 of the State | 21 | | Finance Act in any fiscal year do not reduce and do not | 22 | | constitute payment of any portion of the minimum State | 23 | | contribution required under this Article in that fiscal year. | 24 | | Such amounts shall not reduce, and shall not be included in the | 25 | | calculation of, the required State contributions under this | 26 | | Article in any future year until the System has reached a |
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| 1 | | funding ratio of at least 90%. A reference in this Article to | 2 | | the "required State contribution" or any substantially similar | 3 | | term does not include or apply to any amounts payable to the | 4 | | System under Section 25 of the Budget Stabilization Act. | 5 | | Notwithstanding any other provision of this Section, the | 6 | | required State
contribution for State fiscal year 2005 and for | 7 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 8 | | under this Section and
certified under subsection (a-1), shall | 9 | | not exceed an amount equal to (i) the
amount of the required | 10 | | State contribution that would have been calculated under
this | 11 | | Section for that fiscal year if the System had not received any | 12 | | payments
under subsection (d) of Section 7.2 of the General | 13 | | Obligation Bond Act, minus
(ii) the portion of the State's | 14 | | total debt service payments for that fiscal
year on the bonds | 15 | | issued in fiscal year 2003 for the purposes of that Section | 16 | | 7.2, as determined
and certified by the Comptroller, that is | 17 | | the same as the System's portion of
the total moneys | 18 | | distributed under subsection (d) of Section 7.2 of the General
| 19 | | Obligation Bond Act. In determining this maximum for State | 20 | | fiscal years 2008 through 2010, however, the amount referred to | 21 | | in item (i) shall be increased, as a percentage of the | 22 | | applicable employee payroll, in equal increments calculated | 23 | | from the sum of the required State contribution for State | 24 | | fiscal year 2007 plus the applicable portion of the State's | 25 | | total debt service payments for fiscal year 2007 on the bonds | 26 | | issued in fiscal year 2003 for the purposes of Section 7.2 of |
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| 1 | | the General
Obligation Bond Act, so that, by State fiscal year | 2 | | 2011, the
State is contributing at the rate otherwise required | 3 | | under this Section.
| 4 | | (c) Payment of the required State contributions and of all | 5 | | pensions,
retirement annuities, death benefits, refunds, and | 6 | | other benefits granted
under or assumed by this System, and all | 7 | | expenses in connection with the
administration and operation | 8 | | thereof, are obligations of the State.
| 9 | | If members are paid from special trust or federal funds | 10 | | which are
administered by the employing unit, whether school | 11 | | district or other
unit, the employing unit shall pay to the | 12 | | System from such
funds the full accruing retirement costs based | 13 | | upon that
service, as determined by the System. Employer | 14 | | contributions, based on
salary paid to members from federal | 15 | | funds, may be forwarded by the distributing
agency of the State | 16 | | of Illinois to the System prior to allocation, in an
amount | 17 | | determined in accordance with guidelines established by such
| 18 | | agency and the System.
| 19 | | (d) Effective July 1, 1986, any employer of a teacher as | 20 | | defined in
paragraph (8) of Section 16-106 shall pay the | 21 | | employer's normal cost
of benefits based upon the teacher's | 22 | | service, in addition to
employee contributions, as determined | 23 | | by the System. Such employer
contributions shall be forwarded | 24 | | monthly in accordance with guidelines
established by the | 25 | | System.
| 26 | | However, with respect to benefits granted under Section |
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| 1 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | 2 | | of Section 16-106, the
employer's contribution shall be 12% | 3 | | (rather than 20%) of the member's
highest annual salary rate | 4 | | for each year of creditable service granted, and
the employer | 5 | | shall also pay the required employee contribution on behalf of
| 6 | | the teacher. For the purposes of Sections 16-133.4 and | 7 | | 16-133.5, a teacher
as defined in paragraph (8) of Section | 8 | | 16-106 who is serving in that capacity
while on leave of | 9 | | absence from another employer under this Article shall not
be | 10 | | considered an employee of the employer from which the teacher | 11 | | is on leave.
| 12 | | (e) Beginning July 1, 1998, every employer of a teacher
| 13 | | shall pay to the System an employer contribution computed as | 14 | | follows:
| 15 | | (1) Beginning July 1, 1998 through June 30, 1999, the | 16 | | employer
contribution shall be equal to 0.3% of each | 17 | | teacher's salary.
| 18 | | (2) Beginning July 1, 1999 and thereafter, the employer
| 19 | | contribution shall be equal to 0.58% of each teacher's | 20 | | salary.
| 21 | | The school district or other employing unit may pay these | 22 | | employer
contributions out of any source of funding available | 23 | | for that purpose and
shall forward the contributions to the | 24 | | System on the schedule established
for the payment of member | 25 | | contributions.
| 26 | | These employer contributions are intended to offset a |
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| 1 | | portion of the cost
to the System of the increases in | 2 | | retirement benefits resulting from this
amendatory Act of 1998.
| 3 | | Each employer of teachers is entitled to a credit against | 4 | | the contributions
required under this subsection (e) with | 5 | | respect to salaries paid to teachers
for the period January 1, | 6 | | 2002 through June 30, 2003, equal to the amount paid
by that | 7 | | employer under subsection (a-5) of Section 6.6 of the State | 8 | | Employees
Group Insurance Act of 1971 with respect to salaries | 9 | | paid to teachers for that
period.
| 10 | | The additional 1% employee contribution required under | 11 | | Section 16-152 by
this amendatory Act of 1998 is the | 12 | | responsibility of the teacher and not the
teacher's employer, | 13 | | unless the employer agrees, through collective bargaining
or | 14 | | otherwise, to make the contribution on behalf of the teacher.
| 15 | | If an employer is required by a contract in effect on May | 16 | | 1, 1998 between the
employer and an employee organization to | 17 | | pay, on behalf of all its full-time
employees
covered by this | 18 | | Article, all mandatory employee contributions required under
| 19 | | this Article, then the employer shall be excused from paying | 20 | | the employer
contribution required under this subsection (e) | 21 | | for the balance of the term
of that contract. The employer and | 22 | | the employee organization shall jointly
certify to the System | 23 | | the existence of the contractual requirement, in such
form as | 24 | | the System may prescribe. This exclusion shall cease upon the
| 25 | | termination, extension, or renewal of the contract at any time | 26 | | after May 1,
1998.
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| 1 | | (f) If the amount of a teacher's salary for any school year | 2 | | used to determine final average salary exceeds the member's | 3 | | annual full-time salary rate with the same employer for the | 4 | | previous school year by more than 6%, the teacher's employer | 5 | | shall pay to the System, in addition to all other payments | 6 | | required under this Section and in accordance with guidelines | 7 | | established by the System, the present value of the increase in | 8 | | benefits resulting from the portion of the increase in salary | 9 | | that is in excess of 6%. This present value shall be computed | 10 | | by the System on the basis of the actuarial assumptions and | 11 | | tables used in the most recent actuarial valuation of the | 12 | | System that is available at the time of the computation. If a | 13 | | teacher's salary for the 2005-2006 school year is used to | 14 | | determine final average salary under this subsection (f), then | 15 | | the changes made to this subsection (f) by Public Act 94-1057 | 16 | | shall apply in calculating whether the increase in his or her | 17 | | salary is in excess of 6%. For the purposes of this Section, | 18 | | change in employment under Section 10-21.12 of the School Code | 19 | | on or after June 1, 2005 shall constitute a change in employer. | 20 | | The System may require the employer to provide any pertinent | 21 | | information or documentation.
The changes made to this | 22 | | subsection (f) by this amendatory Act of the 94th General | 23 | | Assembly apply without regard to whether the teacher was in | 24 | | service on or after its effective date.
| 25 | | Whenever it determines that a payment is or may be required | 26 | | under this subsection, the System shall calculate the amount of |
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| 1 | | the payment and bill the employer for that amount. The bill | 2 | | shall specify the calculations used to determine the amount | 3 | | due. If the employer disputes the amount of the bill, it may, | 4 | | within 30 days after receipt of the bill, apply to the System | 5 | | in writing for a recalculation. The application must specify in | 6 | | detail the grounds of the dispute and, if the employer asserts | 7 | | that the calculation is subject to subsection (g) or (h) of | 8 | | this Section, must include an affidavit setting forth and | 9 | | attesting to all facts within the employer's knowledge that are | 10 | | pertinent to the applicability of that subsection. Upon | 11 | | receiving a timely application for recalculation, the System | 12 | | shall review the application and, if appropriate, recalculate | 13 | | the amount due.
| 14 | | The employer contributions required under this subsection | 15 | | (f) may be paid in the form of a lump sum within 90 days after | 16 | | receipt of the bill. If the employer contributions are not paid | 17 | | within 90 days after receipt of the bill, then interest will be | 18 | | charged at a rate equal to the System's annual actuarially | 19 | | assumed rate of return on investment compounded annually from | 20 | | the 91st day after receipt of the bill. Payments must be | 21 | | concluded within 3 years after the employer's receipt of the | 22 | | bill.
| 23 | | (g) This subsection (g) applies only to payments made or | 24 | | salary increases given on or after June 1, 2005 but before July | 25 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 26 | | require the System to refund any payments received before
July |
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| 1 | | 31, 2006 (the effective date of Public Act 94-1057). | 2 | | When assessing payment for any amount due under subsection | 3 | | (f), the System shall exclude salary increases paid to teachers | 4 | | under contracts or collective bargaining agreements entered | 5 | | into, amended, or renewed before June 1, 2005.
| 6 | | When assessing payment for any amount due under subsection | 7 | | (f), the System shall exclude salary increases paid to a | 8 | | teacher at a time when the teacher is 10 or more years from | 9 | | retirement eligibility under Section 16-132 or 16-133.2.
| 10 | | When assessing payment for any amount due under subsection | 11 | | (f), the System shall exclude salary increases resulting from | 12 | | overload work, including summer school, when the school | 13 | | district has certified to the System, and the System has | 14 | | approved the certification, that (i) the overload work is for | 15 | | the sole purpose of classroom instruction in excess of the | 16 | | standard number of classes for a full-time teacher in a school | 17 | | district during a school year and (ii) the salary increases are | 18 | | equal to or less than the rate of pay for classroom instruction | 19 | | computed on the teacher's current salary and work schedule.
| 20 | | When assessing payment for any amount due under subsection | 21 | | (f), the System shall exclude a salary increase resulting from | 22 | | a promotion (i) for which the employee is required to hold a | 23 | | certificate or supervisory endorsement issued by the State | 24 | | Teacher Certification Board that is a different certification | 25 | | or supervisory endorsement than is required for the teacher's | 26 | | previous position and (ii) to a position that has existed and |
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| 1 | | been filled by a member for no less than one complete academic | 2 | | year and the salary increase from the promotion is an increase | 3 | | that results in an amount no greater than the lesser of the | 4 | | average salary paid for other similar positions in the district | 5 | | requiring the same certification or the amount stipulated in | 6 | | the collective bargaining agreement for a similar position | 7 | | requiring the same certification.
| 8 | | When assessing payment for any amount due under subsection | 9 | | (f), the System shall exclude any payment to the teacher from | 10 | | the State of Illinois or the State Board of Education over | 11 | | which the employer does not have discretion, notwithstanding | 12 | | that the payment is included in the computation of final | 13 | | average salary.
| 14 | | (h) When assessing payment for any amount due under | 15 | | subsection (f), the System shall exclude any salary increase | 16 | | described in subsection (g) of this Section given on or after | 17 | | July 1, 2011 but before July 1, 2014 under a contract or | 18 | | collective bargaining agreement entered into, amended, or | 19 | | renewed on or after June 1, 2005 but before July 1, 2011. | 20 | | Notwithstanding any other provision of this Section, any | 21 | | payments made or salary increases given after June 30, 2014 | 22 | | shall be used in assessing payment for any amount due under | 23 | | subsection (f) of this Section.
| 24 | | (i) The System shall prepare a report and file copies of | 25 | | the report with the Governor and the General Assembly by | 26 | | January 1, 2007 that contains all of the following information: |
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| 1 | | (1) The number of recalculations required by the | 2 | | changes made to this Section by Public Act 94-1057 for each | 3 | | employer. | 4 | | (2) The dollar amount by which each employer's | 5 | | contribution to the System was changed due to | 6 | | recalculations required by Public Act 94-1057. | 7 | | (3) The total amount the System received from each | 8 | | employer as a result of the changes made to this Section by | 9 | | Public Act 94-4. | 10 | | (4) The increase in the required State contribution | 11 | | resulting from the changes made to this Section by Public | 12 | | Act 94-1057.
| 13 | | (j) For purposes of determining the required State | 14 | | contribution to the System, the value of the System's assets | 15 | | shall be equal to the actuarial value of the System's assets, | 16 | | which shall be calculated as follows: | 17 | | As of June 30, 2008, the actuarial value of the System's | 18 | | assets shall be equal to the market value of the assets as of | 19 | | that date. In determining the actuarial value of the System's | 20 | | assets for fiscal years after June 30, 2008, any actuarial | 21 | | gains or losses from investment return incurred in a fiscal | 22 | | year shall be recognized in equal annual amounts over the | 23 | | 5-year period following that fiscal year. | 24 | | (k) For purposes of determining the required State | 25 | | contribution to the system for a particular year, the actuarial | 26 | | value of assets shall be assumed to earn a rate of return equal |
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| 1 | | to the system's actuarially assumed rate of return. | 2 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 3 | | 96-43, eff. 7-15-09.)
| 4 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 5 | | Sec. 18-131. Financing; employer contributions.
| 6 | | (a) The State of Illinois shall make contributions to this | 7 | | System by
appropriations of the amounts which, together with | 8 | | the contributions of
participants, net earnings on | 9 | | investments, and other income, will meet the
costs of | 10 | | maintaining and administering this System on a 90% funded basis | 11 | | in
accordance with actuarial recommendations.
| 12 | | (b) The Board shall determine the amount of State | 13 | | contributions
required for each fiscal year on the basis of the | 14 | | actuarial tables and other
assumptions adopted by the Board and | 15 | | the prescribed rate of interest, using
the formula in | 16 | | subsection (c).
| 17 | | (c) For State fiscal years 2011 through 2045, the minimum | 18 | | contribution
to the System to be made by the State for each | 19 | | fiscal year shall be an amount
determined by the System to be | 20 | | sufficient to bring the total assets of the
System up to 90% of | 21 | | the total actuarial liabilities of the System by the end of
| 22 | | State fiscal year 2045. In making these determinations, the | 23 | | required State
contribution shall be calculated each year as a | 24 | | level percentage of payroll
over the years remaining to and | 25 | | including fiscal year 2045 and shall be
determined under the |
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| 1 | | projected unit credit actuarial cost method.
| 2 | | For State fiscal years 1996 through 2005, the State | 3 | | contribution to
the System, as a percentage of the applicable | 4 | | employee payroll, shall be
increased in equal annual increments | 5 | | so that by State fiscal year 2011, the
State is contributing at | 6 | | the rate required under this Section.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution for State fiscal year 2006 is | 9 | | $29,189,400.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution for State fiscal year 2007 is | 12 | | $35,236,800.
| 13 | | For each of State fiscal years 2008 through 2009, the State | 14 | | contribution to
the System, as a percentage of the applicable | 15 | | employee payroll, shall be
increased in equal annual increments | 16 | | from the required State contribution for State fiscal year | 17 | | 2007, so that by State fiscal year 2011, the
State is | 18 | | contributing at the rate otherwise required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State contribution for State fiscal year 2010 is | 21 | | $78,832,000 and shall be made from the proceeds of bonds sold | 22 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 23 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 24 | | expenses determined by the System's share of total bond | 25 | | proceeds, (ii) any amounts received from the General Revenue | 26 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
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| 1 | | proceeds due to the issuance of discounted bonds, if | 2 | | applicable. | 3 | | Beginning in State fiscal year 2046, the minimum State | 4 | | contribution for
each fiscal year shall be the amount needed to | 5 | | maintain the total assets of
the System at 90% of the total | 6 | | actuarial liabilities of the System.
| 7 | | Amounts received by the System pursuant to Section 25 of | 8 | | the Budget Stabilization Act or Section 8.12 of the State | 9 | | Finance Act in any fiscal year do not reduce and do not | 10 | | constitute payment of any portion of the minimum State | 11 | | contribution required under this Article in that fiscal year. | 12 | | Such amounts shall not reduce, and shall not be included in the | 13 | | calculation of, the required State contributions under this | 14 | | Article in any future year until the System has reached a | 15 | | funding ratio of at least 90%. A reference in this Article to | 16 | | the "required State contribution" or any substantially similar | 17 | | term does not include or apply to any amounts payable to the | 18 | | System under Section 25 of the Budget Stabilization Act.
| 19 | | Notwithstanding any other provision of this Section, the | 20 | | required State
contribution for State fiscal year 2005 and for | 21 | | fiscal year 2008 and each fiscal year thereafter, as
calculated | 22 | | under this Section and
certified under Section 18-140, shall | 23 | | not exceed an amount equal to (i) the
amount of the required | 24 | | State contribution that would have been calculated under
this | 25 | | Section for that fiscal year if the System had not received any | 26 | | payments
under subsection (d) of Section 7.2 of the General |
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| 1 | | Obligation Bond Act, minus
(ii) the portion of the State's | 2 | | total debt service payments for that fiscal
year on the bonds | 3 | | issued in fiscal year 2003 for the purposes of that Section | 4 | | 7.2, as determined
and certified by the Comptroller, that is | 5 | | the same as the System's portion of
the total moneys | 6 | | distributed under subsection (d) of Section 7.2 of the General
| 7 | | Obligation Bond Act. In determining this maximum for State | 8 | | fiscal years 2008 through 2010, however, the amount referred to | 9 | | in item (i) shall be increased, as a percentage of the | 10 | | applicable employee payroll, in equal increments calculated | 11 | | from the sum of the required State contribution for State | 12 | | fiscal year 2007 plus the applicable portion of the State's | 13 | | total debt service payments for fiscal year 2007 on the bonds | 14 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 15 | | the General
Obligation Bond Act, so that, by State fiscal year | 16 | | 2011, the
State is contributing at the rate otherwise required | 17 | | under this Section.
| 18 | | (d) For purposes of determining the required State | 19 | | contribution to the System, the value of the System's assets | 20 | | shall be equal to the actuarial value of the System's assets, | 21 | | which shall be calculated as follows: | 22 | | As of June 30, 2008, the actuarial value of the System's | 23 | | assets shall be equal to the market value of the assets as of | 24 | | that date. In determining the actuarial value of the System's | 25 | | assets for fiscal years after June 30, 2008, any actuarial | 26 | | gains or losses from investment return incurred in a fiscal |
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| 1 | | year shall be recognized in equal annual amounts over the | 2 | | 5-year period following that fiscal year. | 3 | | (e) For purposes of determining the required State | 4 | | contribution to the system for a particular year, the actuarial | 5 | | value of assets shall be assumed to earn a rate of return equal | 6 | | to the system's actuarially assumed rate of return. | 7 | | (Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09.)
| 8 | | (40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111)
| 9 | | Sec. 22A-111.
The Board shall manage the investments of any | 10 | | pension
fund, retirement system , or education fund for the | 11 | | purpose
of obtaining a total return on
investments for the long | 12 | | term. It also shall perform such other functions as
may be | 13 | | assigned or directed by the General Assembly.
| 14 | | The authority of the board to manage pension fund | 15 | | investments and the
liability shall begin when there has been a | 16 | | physical transfer of the pension
fund investments to the board | 17 | | and placed in the custody of the State Treasurer.
| 18 | | The authority of the board to manage monies from the | 19 | | education fund for
investment and the liability of the board | 20 | | shall begin when there has been a
physical transfer of | 21 | | education fund investments to the board and placed in
the | 22 | | custody of the State Treasurer.
| 23 | | The board may not delegate its management functions , but it | 24 | | may , but is not required to, arrange
to compensate for | 25 | | personalized investment advisory service
for any or all |
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| 1 | | investments under its control , with any national or state bank
| 2 | | or trust company authorized to do a trust business and | 3 | | domiciled in Illinois,
or other financial institution | 4 | | organized under the laws of Illinois, or an
investment advisor | 5 | | who is qualified under Federal Investment Advisors Act of 1940
| 6 | | and is registered under the Illinois Securities Law of 1953. | 7 | | Nothing contained
herein shall prevent the Board from | 8 | | subscribing to general investment research
services available | 9 | | for purchase or use by others. The Board shall also have
the | 10 | | authority to compensate for accounting services.
| 11 | | This Section shall not be construed to prohibit the | 12 | | Illinois State Board of Investment from directly investing | 13 | | pension assets in public market investments, private | 14 | | investments, real estate investments, or other investments | 15 | | authorized by this Code. | 16 | | (Source: P.A. 84-1127.)
| 17 | | Section 20. The School Construction Law is amended by | 18 | | adding Section 5-38 as follows: | 19 | | (105 ILCS 230/5-38 new) | 20 | | Sec. 5-38. Fiscal Year 2002 escalation. If a school | 21 | | district has been issued a school construction grant in Fiscal | 22 | | Year 2010 and the school district was on the FY2002 priority | 23 | | ranking, the Capital Development Board shall escalate the state | 24 | | share grant amount of the project on a 3% annual escalation |
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| 1 | | rate.
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.".
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