Full Text of SB1673 97th General Assembly
SB1673ham006 97TH GENERAL ASSEMBLY | Rep. Tom Cross Filed: 5/30/2012
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| 1 | | AMENDMENT TO SENATE BILL 1673
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1673, AS AMENDED, | 3 | | with reference to page and line numbers of House Amendment No. | 4 | | 5, as follows:
| 5 | | on page 25, line 15, by deleting "15-159,"; and | 6 | | on page 25, line 21, by deleting "15-155.1, 15-155.2,"; and | 7 | | by replacing page 162, line 8, through page 182, line 9, with | 8 | | the following:
| 9 | | "(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 10 | | Sec. 15-155. Employer contributions.
| 11 | | (a) Except as otherwise provided in this Section, the The | 12 | | State of Illinois shall make contributions by appropriations of
| 13 | | amounts which, together with the other employer contributions | 14 | | from trust,
federal, and other funds, employee contributions, |
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| 1 | | income from investments,
and other income of this System, will | 2 | | be sufficient to meet the cost of
maintaining and administering | 3 | | the System on a 90% funded basis in accordance
with actuarial | 4 | | recommendations.
| 5 | | The Board shall determine the amount of State contributions | 6 | | required for
each fiscal year on the basis of the actuarial | 7 | | tables and other assumptions
adopted by the Board and the | 8 | | recommendations of the actuary, using the formula
in subsection | 9 | | (a-1).
| 10 | | (a-1) Except as otherwise provided in subsection (b-5), | 11 | | for For State fiscal years 2012 through 2045, the minimum | 12 | | contribution
to the System to be made by the State for each | 13 | | fiscal year shall be an amount
determined by the System to be | 14 | | sufficient to bring the total assets of the
System up to 90% of | 15 | | the total actuarial liabilities of the System by the end of
| 16 | | State fiscal year 2045. In making these determinations, the | 17 | | required State
contribution shall be calculated each year as a | 18 | | level percentage of payroll
over the years remaining to and | 19 | | including fiscal year 2045 and shall be
determined under the | 20 | | projected unit credit actuarial cost method.
| 21 | | For State fiscal years 1996 through 2005, the State | 22 | | contribution to
the System, as a percentage of the applicable | 23 | | employee payroll, shall be
increased in equal annual increments | 24 | | so that by State fiscal year 2011, the
State is contributing at | 25 | | the rate 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 2006 is | 2 | | $166,641,900.
| 3 | | Notwithstanding any other provision of this Article, the | 4 | | total required State
contribution for State fiscal year 2007 is | 5 | | $252,064,100.
| 6 | | For each of State fiscal years 2008 through 2009, the State | 7 | | contribution to
the System, as a percentage of the applicable | 8 | | employee payroll, shall be
increased in equal annual increments | 9 | | from the required State contribution for State fiscal year | 10 | | 2007, so that by State fiscal year 2011, the
State is | 11 | | contributing at the rate otherwise required under this Section.
| 12 | | Notwithstanding any other provision of this Article, the | 13 | | total required State contribution for State fiscal year 2010 is | 14 | | $702,514,000 and shall be made from the State Pensions Fund and | 15 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 16 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 17 | | share of bond sale expenses determined by the System's share of | 18 | | total bond proceeds, (ii) any amounts received from the General | 19 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 20 | | proceeds due to the issuance of discounted bonds, if | 21 | | applicable. | 22 | | Notwithstanding any other provision of this Article, the
| 23 | | total required State contribution for State fiscal year 2011 is
| 24 | | the amount recertified by the System on or before April 1, 2011 | 25 | | pursuant to Section 15-165 and shall be made from the State | 26 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
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| 1 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 2 | | less (i) the pro rata
share of bond sale expenses determined by | 3 | | the System's share of
total bond proceeds, (ii) any amounts | 4 | | received from the General
Revenue Fund in fiscal year 2011, and | 5 | | (iii) any reduction in bond
proceeds due to the issuance of | 6 | | discounted bonds, if
applicable. | 7 | | Except as otherwise provided in subsection (b-5), | 8 | | beginning Beginning in State fiscal year 2046, the minimum State | 9 | | contribution for
each fiscal year shall be the amount needed to | 10 | | maintain the total assets of
the System at 90% of the total | 11 | | actuarial liabilities of the System.
| 12 | | Amounts received by the System pursuant to Section 25 of | 13 | | the Budget Stabilization Act or Section 8.12 of the State | 14 | | Finance Act in any fiscal year do not reduce and do not | 15 | | constitute payment of any portion of the minimum State | 16 | | contribution required under this Article in that fiscal year. | 17 | | Such amounts shall not reduce, and shall not be included in the | 18 | | calculation of, the required State contributions under this | 19 | | Article in any future year until the System has reached a | 20 | | funding ratio of at least 90%. A reference in this Article to | 21 | | the "required State contribution" or any substantially similar | 22 | | term does not include or apply to any amounts payable to the | 23 | | System under Section 25 of the Budget Stabilization Act. | 24 | | Notwithstanding any other provision of this Section, the | 25 | | required State
contribution for State fiscal year 2005 and for | 26 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
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| 1 | | under this Section and
certified under Section 15-165, shall | 2 | | not exceed an amount equal to (i) the
amount of the required | 3 | | State contribution that would have been calculated under
this | 4 | | Section for that fiscal year if the System had not received any | 5 | | payments
under subsection (d) of Section 7.2 of the General | 6 | | Obligation Bond Act, minus
(ii) the portion of the State's | 7 | | total debt service payments for that fiscal
year on the bonds | 8 | | issued in fiscal year 2003 for the purposes of that Section | 9 | | 7.2, as determined
and certified by the Comptroller, that is | 10 | | the same as the System's portion of
the total moneys | 11 | | distributed under subsection (d) of Section 7.2 of the General
| 12 | | Obligation Bond Act. In determining this maximum for State | 13 | | fiscal years 2008 through 2010, however, the amount referred to | 14 | | in item (i) shall be increased, as a percentage of the | 15 | | applicable employee payroll, in equal increments calculated | 16 | | from the sum of the required State contribution for State | 17 | | fiscal year 2007 plus the applicable portion of the State's | 18 | | total debt service payments for fiscal year 2007 on the bonds | 19 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 20 | | the General
Obligation Bond Act, so that, by State fiscal year | 21 | | 2011, the
State is contributing at the rate otherwise required | 22 | | under this Section.
| 23 | | (b) If an employee is paid from trust or federal funds, the | 24 | | employer
shall pay to the Board contributions from those funds | 25 | | which are
sufficient to cover the accruing normal costs on | 26 | | behalf of the employee.
However, universities having employees |
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| 1 | | who are compensated out of local
auxiliary funds, income funds, | 2 | | or service enterprise funds are not required
to pay such | 3 | | contributions on behalf of those employees. The local auxiliary
| 4 | | funds, income funds, and service enterprise funds of | 5 | | universities shall not be
considered trust funds for the | 6 | | purpose of this Article, but funds of alumni
associations, | 7 | | foundations, and athletic associations which are affiliated | 8 | | with
the universities included as employers under this Article | 9 | | and other employers
which do not receive State appropriations | 10 | | are considered to be trust funds for
the purpose of this | 11 | | Article.
| 12 | | (b-1) The City of Urbana and the City of Champaign shall | 13 | | each make
employer contributions to this System for their | 14 | | respective firefighter
employees who participate in this | 15 | | System pursuant to subsection (h) of Section
15-107. The rate | 16 | | of contributions to be made by those municipalities shall
be | 17 | | determined annually by the Board on the basis of the actuarial | 18 | | assumptions
adopted by the Board and the recommendations of the | 19 | | actuary, and shall be
expressed as a percentage of salary for | 20 | | each such employee. The Board shall
certify the rate to the | 21 | | affected municipalities as soon as may be practical.
The | 22 | | employer contributions required under this subsection shall be | 23 | | remitted by
the municipality to the System at the same time and | 24 | | in the same manner as
employee contributions.
| 25 | | (b-5) If at least 50% of Tier I employees making an | 26 | | election under Section 15-134.6 before June 1, 2013 choose the |
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| 1 | | option under paragraph (1) of subsection (a) of that Section, | 2 | | then: | 3 | | (1) In lieu of the State contributions required under | 4 | | subsection (a-1), for State fiscal years 2014 through 2043 | 5 | | the minimum contribution to the System to be made by the | 6 | | State for each fiscal year shall be an amount determined by | 7 | | the System to be equal to the sum of (1) the State's | 8 | | portion of the projected normal cost for that fiscal year, | 9 | | plus (2) an amount sufficient to bring the total assets of | 10 | | the System up to 100% of the total actuarial liabilities of | 11 | | the System by the end of
State fiscal year 2043. In making | 12 | | these determinations, the required State contribution | 13 | | shall be calculated each year as a level percentage of | 14 | | payroll over the years remaining to and including fiscal | 15 | | year 2043 and shall be determined under the projected unit | 16 | | credit actuarial cost method. | 17 | | (2) Beginning in State fiscal year 2044, the minimum | 18 | | State contribution for each fiscal year shall be the amount | 19 | | needed to maintain the total assets of the System at 100% | 20 | | of the total actuarial liabilities of the System. | 21 | | (b-6) If less than 50% of Tier I employees making an | 22 | | election under Section 15-134.6 before June 1, 2013 choose the | 23 | | option under paragraph (1) of subsection (a) of that Section, | 24 | | then: | 25 | | (1) Instead of the annual required contribution | 26 | | otherwise specified in subsection (b-5) of this Section, |
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| 1 | | the annual required contribution to the System to be made | 2 | | by the State shall be determined under subsection (a-1) of | 3 | | this Section. | 4 | | (2) As soon as possible after June 1, 2014, the Board | 5 | | shall recertify the annual required contribution by the | 6 | | State for State fiscal year 2015. | 7 | | (c) Through State fiscal year 1995: The total employer | 8 | | contribution shall
be apportioned among the various funds of | 9 | | the State and other employers,
whether trust, federal, or other | 10 | | funds, in accordance with actuarial procedures
approved by the | 11 | | Board. State of Illinois contributions for employers receiving
| 12 | | State appropriations for personal services shall be payable | 13 | | from appropriations
made to the employers or to the System. The | 14 | | contributions for Class I
community colleges covering earnings | 15 | | other than those paid from trust and
federal funds, shall be | 16 | | payable solely from appropriations to the Illinois
Community | 17 | | College Board or the System for employer contributions.
| 18 | | (d) Beginning in State fiscal year 1996, the required State | 19 | | contributions
to the System shall be appropriated directly to | 20 | | the System and shall be payable
through vouchers issued in | 21 | | accordance with subsection (c) of Section 15-165, except as | 22 | | provided in subsection (g).
| 23 | | (e) The State Comptroller shall draw warrants payable to | 24 | | the System upon
proper certification by the System or by the | 25 | | employer in accordance with the
appropriation laws and this | 26 | | Code.
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| 1 | | (f) Normal costs under this Section means liability for
| 2 | | pensions and other benefits which accrues to the System because | 3 | | of the
credits earned for service rendered by the participants | 4 | | during the
fiscal year and expenses of administering the | 5 | | System, but shall not
include the principal of or any | 6 | | redemption premium or interest on any bonds
issued by the Board | 7 | | or any expenses incurred or deposits required in
connection | 8 | | therewith.
| 9 | | (g) If the amount of a participant's earnings for any | 10 | | academic year used to determine the final rate of earnings, | 11 | | determined on a full-time equivalent basis, exceeds the amount | 12 | | of his or her earnings with the same employer for the previous | 13 | | academic year, determined on a full-time equivalent basis, by | 14 | | more than 6% , the participant's employer shall pay to the | 15 | | System, in addition to all other payments required under this | 16 | | Section and in accordance with guidelines established by the | 17 | | System, the present value of the increase in benefits resulting | 18 | | from the portion of the increase in earnings that is in excess | 19 | | of 6% . This present value shall be computed by the System on | 20 | | the basis of the actuarial assumptions and tables used in the | 21 | | most recent actuarial valuation of the System that is available | 22 | | at the time of the computation. The System may require the | 23 | | employer to provide any pertinent information or | 24 | | documentation. The changes to this subsection (removing the 6% | 25 | | increase permitted without payment to the System by the | 26 | | employer) made by this amendatory Act of the 97th General |
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| 1 | | Assembly do not apply to a teacher who is covered by a | 2 | | collective bargaining agreement or employment contract in | 3 | | effect on the effective date of this amendatory Act that | 4 | | provides for such increases, until such time as that agreement | 5 | | or contract expires or is amended or renewed. | 6 | | Whenever it determines that a payment is or may be required | 7 | | under this subsection (g), the System shall calculate the | 8 | | amount of the payment and bill the employer for that amount. | 9 | | The bill shall specify the calculations used to determine the | 10 | | amount due. If the employer disputes the amount of the bill, it | 11 | | may, within 30 days after receipt of the bill, apply to the | 12 | | System in writing for a recalculation. The application must | 13 | | specify in detail the grounds of the dispute and, if the | 14 | | employer asserts that the calculation is subject to subsection | 15 | | (h) or (i) of this Section, must include an affidavit setting | 16 | | forth and attesting to all facts within the employer's | 17 | | knowledge that are pertinent to the applicability of subsection | 18 | | (h) or (i). Upon receiving a timely application for | 19 | | recalculation, the System shall review the application and, if | 20 | | appropriate, recalculate the amount due.
| 21 | | The employer contributions required under this subsection | 22 | | (g) (f) may be paid in the form of a lump sum within 90 days | 23 | | after receipt of the bill. If the employer contributions are | 24 | | not paid within 90 days after receipt of the bill, then | 25 | | interest will be charged at a rate equal to the System's annual | 26 | | actuarially assumed rate of return on investment compounded |
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| 1 | | annually from the 91st day after receipt of the bill. Payments | 2 | | must be concluded within 3 years after the employer's receipt | 3 | | of the bill. | 4 | | (h) This subsection (h) applies only to payments made or | 5 | | salary increases given on or after June 1, 2005 but before July | 6 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 7 | | require the System to refund any payments received before July | 8 | | 31, 2006 (the effective date of Public Act 94-1057). | 9 | | When assessing payment for any amount due under subsection | 10 | | (g), the System shall exclude earnings increases paid to | 11 | | participants under contracts or collective bargaining | 12 | | agreements entered into, amended, or renewed before June 1, | 13 | | 2005.
| 14 | | When assessing payment for any amount due under subsection | 15 | | (g), the System shall exclude earnings increases paid to a | 16 | | participant at a time when the participant is 10 or more years | 17 | | from retirement eligibility under Section 15-135.
| 18 | | When assessing payment for any amount due under subsection | 19 | | (g), the System shall exclude earnings increases resulting from | 20 | | overload work, including a contract for summer teaching, or | 21 | | overtime when the employer has certified to the System, and the | 22 | | System has approved the certification, that: (i) in the case of | 23 | | overloads (A) the overload work is for the sole purpose of | 24 | | academic instruction in excess of the standard number of | 25 | | instruction hours for a full-time employee occurring during the | 26 | | academic year that the overload is paid and (B) the earnings |
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| 1 | | increases are equal to or less than the rate of pay for | 2 | | academic instruction computed using the participant's current | 3 | | salary rate and work schedule; and (ii) in the case of | 4 | | overtime, the overtime was necessary for the educational | 5 | | mission. | 6 | | When assessing payment for any amount due under subsection | 7 | | (g), the System shall exclude any earnings increase resulting | 8 | | from (i) a promotion for which the employee moves from one | 9 | | classification to a higher classification under the State | 10 | | Universities Civil Service System, (ii) a promotion in academic | 11 | | rank for a tenured or tenure-track faculty position, or (iii) a | 12 | | promotion that the Illinois Community College Board has | 13 | | recommended in accordance with subsection (k) of this Section. | 14 | | These earnings increases shall be excluded only if the | 15 | | promotion is to a position that has existed and been filled by | 16 | | a member for no less than one complete academic year and the | 17 | | earnings increase as a result of the promotion is an increase | 18 | | that results in an amount no greater than the average salary | 19 | | paid for other similar positions. | 20 | | (i) When assessing payment for any amount due under | 21 | | subsection (g), the System shall exclude any salary increase | 22 | | described in subsection (h) of this Section given on or after | 23 | | July 1, 2011 but before July 1, 2014 under a contract or | 24 | | collective bargaining agreement entered into, amended, or | 25 | | renewed on or after June 1, 2005 but before July 1, 2011. | 26 | | Notwithstanding any other provision of this Section, any |
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| 1 | | payments made or salary increases given after June 30, 2014 | 2 | | shall be used in assessing payment for any amount due under | 3 | | subsection (g) of this Section.
| 4 | | (j) The System shall prepare a report and file copies of | 5 | | the report with the Governor and the General Assembly by | 6 | | January 1, 2007 that contains all of the following information: | 7 | | (1) The number of recalculations required by the | 8 | | changes made to this Section by Public Act 94-1057 for each | 9 | | employer. | 10 | | (2) The dollar amount by which each employer's | 11 | | contribution to the System was changed due to | 12 | | recalculations required by Public Act 94-1057. | 13 | | (3) The total amount the System received from each | 14 | | employer as a result of the changes made to this Section by | 15 | | Public Act 94-4. | 16 | | (4) The increase in the required State contribution | 17 | | resulting from the changes made to this Section by Public | 18 | | Act 94-1057. | 19 | | (k) The Illinois Community College Board shall adopt rules | 20 | | for recommending lists of promotional positions submitted to | 21 | | the Board by community colleges and for reviewing the | 22 | | promotional lists on an annual basis. When recommending | 23 | | promotional lists, the Board shall consider the similarity of | 24 | | the positions submitted to those positions recognized for State | 25 | | universities by the State Universities Civil Service System. | 26 | | The Illinois Community College Board shall file a copy of its |
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| 1 | | findings with the System. The System shall consider the | 2 | | findings of the Illinois Community College Board when making | 3 | | determinations under this Section. The System shall not exclude | 4 | | any earnings increases resulting from a promotion when the | 5 | | promotion was not submitted by a community college. Nothing in | 6 | | this subsection (k) shall require any community college to | 7 | | submit any information to the Community College Board.
| 8 | | (l) For purposes of determining the required State | 9 | | contribution to the System, the value of the System's assets | 10 | | shall be equal to the actuarial value of the System's assets, | 11 | | which shall be calculated as follows: | 12 | | As of June 30, 2008, the actuarial value of the System's | 13 | | assets shall be equal to the market value of the assets as of | 14 | | that date. In determining the actuarial value of the System's | 15 | | assets for fiscal years after June 30, 2008, any actuarial | 16 | | gains or losses from investment return incurred in a fiscal | 17 | | year shall be recognized in equal annual amounts over the | 18 | | 5-year period following that fiscal year. | 19 | | (m) For purposes of determining the required State | 20 | | contribution to the system for a particular year, the actuarial | 21 | | value of assets shall be assumed to earn a rate of return equal | 22 | | to the system's actuarially assumed rate of return. | 23 | | (Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08; | 24 | | 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff. | 25 | | 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)"; and
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| 1 | | by deleting page 195, line 6, through page 201, line 11.
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