Illinois General Assembly - Full Text of SB0538
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Full Text of SB0538  97th General Assembly

SB0538sam001 97TH GENERAL ASSEMBLY

Sen. Dan Kotowski

Filed: 3/21/2012

 

 


 

 


 
09700SB0538sam001LRB097 04285 EFG 67247 a

1
AMENDMENT TO SENATE BILL 538

2    AMENDMENT NO. ______. Amend Senate Bill 538 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 2-134, 14-135.08, 15-165, 16-158, and 18-140
6as follows:
 
7    (40 ILCS 5/2-134)   (from Ch. 108 1/2, par. 2-134)
8    Sec. 2-134. To certify required State contributions and
9submit vouchers.
10    (a) The Board shall certify to the Governor on or before
11December 15 of each year the amount of the required State
12contribution to the System for the next fiscal year. The
13certification shall include a copy of the actuarial
14recommendations upon which it is based and shall specifically
15identify the System's predicted State normal cost for that
16fiscal year.

 

 

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

 

 

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1determined under this Section after taking into consideration
2the transfer to the System under subsection (d) of Section
36z-61 of the State Finance Act. These vouchers shall be paid by
4the State Comptroller and Treasurer by warrants drawn on the
5funds appropriated to the System for that fiscal year. If in
6any month the amount remaining unexpended from all other
7appropriations to the System for the applicable fiscal year
8(including the appropriations to the System under Section 8.12
9of the State Finance Act and Section 1 of the State Pension
10Funds Continuing Appropriation Act) is less than the amount
11lawfully vouchered under this Section, the difference shall be
12paid from the General Revenue Fund under the continuing
13appropriation authority provided in Section 1.1 of the State
14Pension Funds Continuing Appropriation Act.
15    (c) The full amount of any annual appropriation for the
16System for State fiscal year 1995 shall be transferred and made
17available to the System at the beginning of that fiscal year at
18the request of the Board. Any excess funds remaining at the end
19of any fiscal year from appropriations shall be retained by the
20System as a general reserve to meet the System's accrued
21liabilities.
22(Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11;
2396-1511, eff. 1-27-11.)
 
24    (40 ILCS 5/14-135.08)  (from Ch. 108 1/2, par. 14-135.08)
25    Sec. 14-135.08. To certify required State contributions.

 

 

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1    (a) To certify to the Governor and to each department, on
2or before November 15 of each year, the required rate for State
3contributions to the System for the next State fiscal year, as
4determined under subsection (b) of Section 14-131. The
5certification to the Governor shall include a copy of the
6actuarial recommendations upon which the rate is based and
7shall specifically identify the System's predicted State
8normal cost for that fiscal year.
9    (b) The certification shall include an additional amount
10necessary to pay all principal of and interest on those general
11obligation bonds due the next fiscal year authorized by Section
127.2(a) of the General Obligation Bond Act and issued to provide
13the proceeds deposited by the State with the System in July
142003, representing deposits other than amounts reserved under
15Section 7.2(c) of the General Obligation Bond Act. For State
16fiscal year 2005, the Board shall make a supplemental
17certification of the additional amount necessary to pay all
18principal of and interest on those general obligation bonds due
19in State fiscal years 2004 and 2005 authorized by Section
207.2(a) of the General Obligation Bond Act and issued to provide
21the proceeds deposited by the State with the System in July
222003, representing deposits other than amounts reserved under
23Section 7.2(c) of the General Obligation Bond Act, as soon as
24practical after the effective date of this amendatory Act of
25the 93rd General Assembly.
26    On or before May 1, 2004, the Board shall recalculate and

 

 

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1recertify to the Governor and to each department the amount of
2the required State contribution to the System and the required
3rates for State contributions to the System for State fiscal
4year 2005, taking into account the amounts appropriated to and
5received by the System under subsection (d) of Section 7.2 of
6the General Obligation Bond Act.
7    On or before July 1, 2005, the Board shall recalculate and
8recertify to the Governor and to each department the amount of
9the required State contribution to the System and the required
10rates for State contributions to the System for State fiscal
11year 2006, taking into account the changes in required State
12contributions made by this amendatory Act of the 94th General
13Assembly.
14    On or before April 1, 2011, the Board shall recalculate and
15recertify to the Governor and to each department the amount of
16the required State contribution to the System for State fiscal
17year 2011, applying the changes made by Public Act 96-889 to
18the System's assets and liabilities as of June 30, 2009 as
19though Public Act 96-889 was approved on that date.
20(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
21    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
22    Sec. 15-165. To certify amounts and submit vouchers.
23    (a) The Board shall certify to the Governor on or before
24November 15 of each year the appropriation required from State
25funds for the purposes of this System for the following fiscal

 

 

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1year. The certification shall include a copy of the actuarial
2recommendations upon which it is based and shall specifically
3identify the System's predicted State normal cost for that
4fiscal year and the predicted State cost for the self-managed
5plan for that fiscal year.
6    On or before May 1, 2004, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2005, taking
9into account the amounts appropriated to and received by the
10System under subsection (d) of Section 7.2 of the General
11Obligation Bond Act.
12    On or before July 1, 2005, the Board shall recalculate and
13recertify to the Governor the amount of the required State
14contribution to the System for State fiscal year 2006, taking
15into account the changes in required State contributions made
16by this amendatory Act of the 94th General Assembly.
17    On or before April 1, 2011, the Board shall recalculate and
18recertify to the Governor the amount of the required State
19contribution to the System for State fiscal year 2011, applying
20the changes made by Public Act 96-889 to the System's assets
21and liabilities as of June 30, 2009 as though Public Act 96-889
22was approved on that date.
23    (b) The Board shall certify to the State Comptroller or
24employer, as the case may be, from time to time, by its
25president and secretary, with its seal attached, the amounts
26payable to the System from the various funds.

 

 

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1    (c) Beginning in State fiscal year 1996, on or as soon as
2possible after the 15th day of each month the Board shall
3submit vouchers for payment of State contributions to the
4System, in a total monthly amount of one-twelfth of the
5required annual State contribution certified under subsection
6(a). From the effective date of this amendatory Act of the 93rd
7General Assembly through June 30, 2004, the Board shall not
8submit vouchers for the remainder of fiscal year 2004 in excess
9of the fiscal year 2004 certified contribution amount
10determined under this Section after taking into consideration
11the transfer to the System under subsection (b) of Section
126z-61 of the State Finance Act. These vouchers shall be paid by
13the State Comptroller and Treasurer by warrants drawn on the
14funds appropriated to the System for that fiscal year.
15    If in any month the amount remaining unexpended from all
16other appropriations to the System for the applicable fiscal
17year (including the appropriations to the System under Section
188.12 of the State Finance Act and Section 1 of the State
19Pension Funds Continuing Appropriation Act) is less than the
20amount lawfully vouchered under this Section, the difference
21shall be paid from the General Revenue Fund under the
22continuing appropriation authority provided in Section 1.1 of
23the State Pension Funds Continuing Appropriation Act.
24    (d) So long as the payments received are the full amount
25lawfully vouchered under this Section, payments received by the
26System under this Section shall be applied first toward the

 

 

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1employer contribution to the self-managed plan established
2under Section 15-158.2. Payments shall be applied second toward
3the employer's portion of the normal costs of the System, as
4defined in subsection (f) of Section 15-155. The balance shall
5be applied toward the unfunded actuarial liabilities of the
6System.
7    (e) In the event that the System does not receive, as a
8result of legislative enactment or otherwise, payments
9sufficient to fully fund the employer contribution to the
10self-managed plan established under Section 15-158.2 and to
11fully fund that portion of the employer's portion of the normal
12costs of the System, as calculated in accordance with Section
1315-155(a-1), then any payments received shall be applied
14proportionately to the optional retirement program established
15under Section 15-158.2 and to the employer's portion of the
16normal costs of the System, as calculated in accordance with
17Section 15-155(a-1).
18(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
19    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
20    Sec. 16-158. Contributions by State and other employing
21units.
22    (a) The State shall make contributions to the System by
23means of appropriations from the Common School Fund and other
24State funds of amounts which, together with other employer
25contributions, employee contributions, investment income, and

 

 

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1other income, will be sufficient to meet the cost of
2maintaining and administering the System on a 90% funded basis
3in accordance with actuarial recommendations.
4    The Board shall determine the amount of State contributions
5required for each fiscal year on the basis of the actuarial
6tables and other assumptions adopted by the Board and the
7recommendations of the actuary, using the formula in subsection
8(b-3).
9    (a-1) Annually, on or before November 15, the Board shall
10certify to the Governor the amount of the required State
11contribution for the coming fiscal year. The certification
12shall include a copy of the actuarial recommendations upon
13which it is based and shall specifically identify the System's
14predicted State normal cost for that fiscal year.
15    On or before May 1, 2004, the Board shall recalculate and
16recertify to the Governor the amount of the required State
17contribution to the System for State fiscal year 2005, taking
18into account the amounts appropriated to and received by the
19System under subsection (d) of Section 7.2 of the General
20Obligation Bond Act.
21    On or before July 1, 2005 April 1, 2011, the Board shall
22recalculate and recertify to the Governor the amount of the
23required State contribution to the System for State fiscal year
242006, taking into account the changes in required State
25contributions made by this amendatory Act of the 94th General
26Assembly.

 

 

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1    On or before April 1, 2011 June 15, 2010, the Board shall
2recalculate and recertify to the Governor the amount of the
3required State contribution to the System for State fiscal year
42011, applying the changes made by Public Act 96-889 to the
5System's assets and liabilities as of June 30, 2009 as though
6Public Act 96-889 was approved on that date.
7    (b) Through State fiscal year 1995, the State contributions
8shall be paid to the System in accordance with Section 18-7 of
9the School Code.
10    (b-1) Beginning in State fiscal year 1996, on the 15th day
11of each month, or as soon thereafter as may be practicable, the
12Board shall submit vouchers for payment of State contributions
13to the System, in a total monthly amount of one-twelfth of the
14required annual State contribution certified under subsection
15(a-1). From the effective date of this amendatory Act of the
1693rd General Assembly through June 30, 2004, the Board shall
17not submit vouchers for the remainder of fiscal year 2004 in
18excess of the fiscal year 2004 certified contribution amount
19determined under this Section after taking into consideration
20the transfer to the System under subsection (a) of Section
216z-61 of the State Finance Act. These vouchers shall be paid by
22the State Comptroller and Treasurer by warrants drawn on the
23funds appropriated to the System for that fiscal year.
24    If in any month the amount remaining unexpended from all
25other appropriations to the System for the applicable fiscal
26year (including the appropriations to the System under Section

 

 

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18.12 of the State Finance Act and Section 1 of the State
2Pension Funds Continuing Appropriation Act) is less than the
3amount lawfully vouchered under this subsection, the
4difference shall be paid from the Common School Fund under the
5continuing appropriation authority provided in Section 1.1 of
6the State Pension Funds Continuing Appropriation Act.
7    (b-2) Allocations from the Common School Fund apportioned
8to school districts not coming under this System shall not be
9diminished or affected by the provisions of this Article.
10    (b-3) For State fiscal years 2012 through 2045, the minimum
11contribution to the System to be made by the State for each
12fiscal year shall be an amount determined by the System to be
13sufficient to bring the total assets of the System up to 90% of
14the total actuarial liabilities of the System by the end of
15State fiscal year 2045. In making these determinations, the
16required State contribution shall be calculated each year as a
17level percentage of payroll over the years remaining to and
18including fiscal year 2045 and shall be determined under the
19projected unit credit actuarial cost method.
20    For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23so that by State fiscal year 2011, the State is contributing at
24the rate required under this Section; except that in the
25following specified State fiscal years, the State contribution
26to the System shall not be less than the following indicated

 

 

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1percentages of the applicable employee payroll, even if the
2indicated percentage will produce a State contribution in
3excess of the amount otherwise required under this subsection
4and subsection (a), and notwithstanding any contrary
5certification made under subsection (a-1) before the effective
6date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
7in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
82003; and 13.56% in FY 2004.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2006 is
11$534,627,700.
12    Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2007 is
14$738,014,500.
15    For each of State fiscal years 2008 through 2009, the State
16contribution to the System, as a percentage of the applicable
17employee payroll, shall be increased in equal annual increments
18from the required State contribution for State fiscal year
192007, so that by State fiscal year 2011, the State is
20contributing at the rate otherwise required under this Section.
21    Notwithstanding any other provision of this Article, the
22total required State contribution for State fiscal year 2010 is
23$2,089,268,000 and shall be made from the proceeds of bonds
24sold in fiscal year 2010 pursuant to Section 7.2 of the General
25Obligation Bond Act, less (i) the pro rata share of bond sale
26expenses determined by the System's share of total bond

 

 

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1proceeds, (ii) any amounts received from the Common School Fund
2in fiscal year 2010, and (iii) any reduction in bond proceeds
3due to the issuance of discounted bonds, if applicable.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2011 is
6the amount recertified by the System on or before April 1, 2011
7pursuant to subsection (a-1) of this Section and shall be made
8from the proceeds of bonds sold in fiscal year 2011 pursuant to
9Section 7.2 of the General Obligation Bond Act, less (i) the
10pro rata share of bond sale expenses determined by the System's
11share of total bond proceeds, (ii) any amounts received from
12the Common School Fund in fiscal year 2011, and (iii) any
13reduction in bond proceeds due to the issuance of discounted
14bonds, if applicable. This amount shall include, in addition to
15the amount certified by the System, an amount necessary to meet
16employer contributions required by the State as an employer
17under paragraph (e) of this Section, which may also be used by
18the System for contributions required by paragraph (a) of
19Section 16-127.
20    Beginning in State fiscal year 2046, the minimum State
21contribution for each fiscal year shall be the amount needed to
22maintain the total assets of the System at 90% of the total
23actuarial liabilities of the System.
24    Amounts received by the System pursuant to Section 25 of
25the Budget Stabilization Act or Section 8.12 of the State
26Finance Act in any fiscal year do not reduce and do not

 

 

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1constitute payment of any portion of the minimum State
2contribution required under this Article in that fiscal year.
3Such amounts shall not reduce, and shall not be included in the
4calculation of, the required State contributions under this
5Article in any future year until the System has reached a
6funding ratio of at least 90%. A reference in this Article to
7the "required State contribution" or any substantially similar
8term does not include or apply to any amounts payable to the
9System under Section 25 of the Budget Stabilization Act.
10    Notwithstanding any other provision of this Section, the
11required State contribution for State fiscal year 2005 and for
12fiscal year 2008 and each fiscal year thereafter, as calculated
13under this Section and certified under subsection (a-1), shall
14not exceed an amount equal to (i) the amount of the required
15State contribution that would have been calculated under this
16Section for that fiscal year if the System had not received any
17payments under subsection (d) of Section 7.2 of the General
18Obligation Bond Act, minus (ii) the portion of the State's
19total debt service payments for that fiscal year on the bonds
20issued in fiscal year 2003 for the purposes of that Section
217.2, as determined and certified by the Comptroller, that is
22the same as the System's portion of the total moneys
23distributed under subsection (d) of Section 7.2 of the General
24Obligation Bond Act. In determining this maximum for State
25fiscal years 2008 through 2010, however, the amount referred to
26in item (i) shall be increased, as a percentage of the

 

 

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1applicable employee payroll, in equal increments calculated
2from the sum of the required State contribution for State
3fiscal year 2007 plus the applicable portion of the State's
4total debt service payments for fiscal year 2007 on the bonds
5issued in fiscal year 2003 for the purposes of Section 7.2 of
6the General Obligation Bond Act, so that, by State fiscal year
72011, the State is contributing at the rate otherwise required
8under this Section.
9    (c) Payment of the required State contributions and of all
10pensions, retirement annuities, death benefits, refunds, and
11other benefits granted under or assumed by this System, and all
12expenses in connection with the administration and operation
13thereof, are obligations of the State.
14    If members are paid from special trust or federal funds
15which are administered by the employing unit, whether school
16district or other unit, the employing unit shall pay to the
17System from such funds the full accruing retirement costs based
18upon that service, as determined by the System. Employer
19contributions, based on salary paid to members from federal
20funds, may be forwarded by the distributing agency of the State
21of Illinois to the System prior to allocation, in an amount
22determined in accordance with guidelines established by such
23agency and the System.
24    (d) Effective July 1, 1986, any employer of a teacher as
25defined in paragraph (8) of Section 16-106 shall pay the
26employer's normal cost of benefits based upon the teacher's

 

 

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1service, in addition to employee contributions, as determined
2by the System. Such employer contributions shall be forwarded
3monthly in accordance with guidelines established by the
4System.
5    However, with respect to benefits granted under Section
616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
7of Section 16-106, the employer's contribution shall be 12%
8(rather than 20%) of the member's highest annual salary rate
9for each year of creditable service granted, and the employer
10shall also pay the required employee contribution on behalf of
11the teacher. For the purposes of Sections 16-133.4 and
1216-133.5, a teacher as defined in paragraph (8) of Section
1316-106 who is serving in that capacity while on leave of
14absence from another employer under this Article shall not be
15considered an employee of the employer from which the teacher
16is on leave.
17    (e) Beginning July 1, 1998, every employer of a teacher
18shall pay to the System an employer contribution computed as
19follows:
20        (1) Beginning July 1, 1998 through June 30, 1999, the
21    employer contribution shall be equal to 0.3% of each
22    teacher's salary.
23        (2) Beginning July 1, 1999 and thereafter, the employer
24    contribution shall be equal to 0.58% of each teacher's
25    salary.
26The school district or other employing unit may pay these

 

 

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1employer contributions out of any source of funding available
2for that purpose and shall forward the contributions to the
3System on the schedule established for the payment of member
4contributions.
5    These employer contributions are intended to offset a
6portion of the cost to the System of the increases in
7retirement benefits resulting from this amendatory Act of 1998.
8    Each employer of teachers is entitled to a credit against
9the contributions required under this subsection (e) with
10respect to salaries paid to teachers for the period January 1,
112002 through June 30, 2003, equal to the amount paid by that
12employer under subsection (a-5) of Section 6.6 of the State
13Employees Group Insurance Act of 1971 with respect to salaries
14paid to teachers for that period.
15    The additional 1% employee contribution required under
16Section 16-152 by this amendatory Act of 1998 is the
17responsibility of the teacher and not the teacher's employer,
18unless the employer agrees, through collective bargaining or
19otherwise, to make the contribution on behalf of the teacher.
20    If an employer is required by a contract in effect on May
211, 1998 between the employer and an employee organization to
22pay, on behalf of all its full-time employees covered by this
23Article, all mandatory employee contributions required under
24this Article, then the employer shall be excused from paying
25the employer contribution required under this subsection (e)
26for the balance of the term of that contract. The employer and

 

 

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

 

 

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1subsection (f) by this amendatory Act of the 94th General
2Assembly apply without regard to whether the teacher was in
3service on or after its effective date.
4    Whenever it determines that a payment is or may be required
5under this subsection, the System shall calculate the amount of
6the payment and bill the employer for that amount. The bill
7shall specify the calculations used to determine the amount
8due. If the employer disputes the amount of the bill, it may,
9within 30 days after receipt of the bill, apply to the System
10in writing for a recalculation. The application must specify in
11detail the grounds of the dispute and, if the employer asserts
12that the calculation is subject to subsection (g) or (h) of
13this Section, must include an affidavit setting forth and
14attesting to all facts within the employer's knowledge that are
15pertinent to the applicability of that subsection. Upon
16receiving a timely application for recalculation, the System
17shall review the application and, if appropriate, recalculate
18the amount due.
19    The employer contributions required under this subsection
20(f) may be paid in the form of a lump sum within 90 days after
21receipt of the bill. If the employer contributions are not paid
22within 90 days after receipt of the bill, then interest will be
23charged at a rate equal to the System's annual actuarially
24assumed rate of return on investment compounded annually from
25the 91st day after receipt of the bill. Payments must be
26concluded within 3 years after the employer's receipt of the

 

 

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1bill.
2    (g) This subsection (g) applies only to payments made or
3salary increases given on or after June 1, 2005 but before July
41, 2011. The changes made by Public Act 94-1057 shall not
5require the System to refund any payments received before July
631, 2006 (the effective date of Public Act 94-1057).
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude salary increases paid to teachers
9under contracts or collective bargaining agreements entered
10into, amended, or renewed before June 1, 2005.
11    When assessing payment for any amount due under subsection
12(f), the System shall exclude salary increases paid to a
13teacher at a time when the teacher is 10 or more years from
14retirement eligibility under Section 16-132 or 16-133.2.
15    When assessing payment for any amount due under subsection
16(f), the System shall exclude salary increases resulting from
17overload work, including summer school, when the school
18district has certified to the System, and the System has
19approved the certification, that (i) the overload work is for
20the sole purpose of classroom instruction in excess of the
21standard number of classes for a full-time teacher in a school
22district during a school year and (ii) the salary increases are
23equal to or less than the rate of pay for classroom instruction
24computed on the teacher's current salary and work schedule.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude a salary increase resulting from

 

 

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

 

 

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

 

 

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1year shall be recognized in equal annual amounts over the
25-year period following that fiscal year.
3    (k) For purposes of determining the required State
4contribution to the system for a particular year, the actuarial
5value of assets shall be assumed to earn a rate of return equal
6to the system's actuarially assumed rate of return.
7(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
896-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff.
91-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
 
10    (40 ILCS 5/18-140)   (from Ch. 108 1/2, par. 18-140)
11    Sec. 18-140. To certify required State contributions and
12submit vouchers.
13    (a) The Board shall certify to the Governor, on or before
14November 15 of each year, the amount of the required State
15contribution to the System for the following fiscal year. The
16certification shall include a copy of the actuarial
17recommendations upon which it is based and shall specifically
18identify the System's predicted State normal cost for that
19fiscal year.
20    On or before May 1, 2004, the Board shall recalculate and
21recertify to the Governor the amount of the required State
22contribution to the System for State fiscal year 2005, taking
23into account the amounts appropriated to and received by the
24System under subsection (d) of Section 7.2 of the General
25Obligation Bond Act.

 

 

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1    On or before July 1, 2005, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2006, taking
4into account the changes in required State contributions made
5by this amendatory Act of the 94th General Assembly.
6    On or before April 1, 2011, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2011, applying
9the changes made by Public Act 96-889 to the System's assets
10and liabilities as of June 30, 2009 as though Public Act 96-889
11was approved on that date.
12    (b) Beginning in State fiscal year 1996, on or as soon as
13possible after the 15th day of each month the Board shall
14submit vouchers for payment of State contributions to the
15System, in a total monthly amount of one-twelfth of the
16required annual State contribution certified under subsection
17(a). From the effective date of this amendatory Act of the 93rd
18General Assembly through June 30, 2004, the Board shall not
19submit vouchers for the remainder of fiscal year 2004 in excess
20of the fiscal year 2004 certified contribution amount
21determined under this Section after taking into consideration
22the transfer to the System under subsection (c) of Section
236z-61 of the State Finance Act. These vouchers shall be paid by
24the State Comptroller and Treasurer by warrants drawn on the
25funds appropriated to the System for that fiscal year.
26    If in any month the amount remaining unexpended from all

 

 

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1other appropriations to the System for the applicable fiscal
2year (including the appropriations to the System under Section
38.12 of the State Finance Act and Section 1 of the State
4Pension Funds Continuing Appropriation Act) is less than the
5amount lawfully vouchered under this Section, the difference
6shall be paid from the General Revenue Fund under the
7continuing appropriation authority provided in Section 1.1 of
8the State Pension Funds Continuing Appropriation Act.
9(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".