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92_SB1174ham002
LRB9207962EGfgam02
1 AMENDMENT TO SENATE BILL 1174
2 AMENDMENT NO. . Amend Senate Bill 1174, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
5 "Section 5. The State Employees Group Insurance Act of
6 1971 is amended by changing Sections 6.5 and 6.6 as follows:
7 (5 ILCS 375/6.5)
8 (Section scheduled to be repealed on July 1, 2004)
9 Sec. 6.5. Health benefits for TRS benefit recipients and
10 TRS dependent beneficiaries.
11 (a) Purpose. It is the purpose of this amendatory Act
12 of 1995 to transfer the administration of the program of
13 health benefits established for benefit recipients and their
14 dependent beneficiaries under Article 16 of the Illinois
15 Pension Code to the Department of Central Management
16 Services.
17 (b) Transition provisions. The Board of Trustees of the
18 Teachers' Retirement System shall continue to administer the
19 health benefit program established under Article 16 of the
20 Illinois Pension Code through December 31, 1995. Beginning
21 January 1, 1996, the Department of Central Management
22 Services shall be responsible for administering a program of
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1 health benefits for TRS benefit recipients and TRS dependent
2 beneficiaries under this Section. The Department of Central
3 Management Services and the Teachers' Retirement System shall
4 cooperate in this endeavor and shall coordinate their
5 activities so as to ensure a smooth transition and
6 uninterrupted health benefit coverage.
7 (c) Eligibility. All persons who were enrolled in the
8 Article 16 program at the time of the transfer shall be
9 eligible to participate in the program established under this
10 Section without any interruption or delay in coverage or
11 limitation as to pre-existing medical conditions.
12 Eligibility to participate shall be determined by the
13 Teachers' Retirement System. Eligibility information shall
14 be communicated to the Department of Central Management
15 Services in a format acceptable to the Department.
16 (d) Coverage. The level of health benefits provided
17 under this Section shall be similar to the level of benefits
18 provided by the program previously established under Article
19 16 of the Illinois Pension Code.
20 Group life insurance benefits are not included in the
21 benefits to be provided to TRS benefit recipients and TRS
22 dependent beneficiaries under this Act.
23 The program of health benefits under this Section may
24 include any or all of the benefit limitations, including but
25 not limited to a reduction in benefits based on eligibility
26 for federal medicare benefits, that are provided under
27 subsection (a) of Section 6 of this Act for other health
28 benefit programs under this Act.
29 (e) Insurance rates and premiums. The Director shall
30 determine the insurance rates and premiums for TRS benefit
31 recipients and TRS dependent beneficiaries, and shall present
32 to the Teachers' Retirement System of the State of Illinois,
33 by April 15 of each calendar year, the rate-setting
34 methodology (including but not limited to utilization levels
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1 and costs) used to determine the amount of the health care
2 premiums.
3 For Fiscal Year 1996, the premium shall be equal to the
4 premium actually charged in Fiscal Year 1995;. in subsequent
5 years, the premium shall never be lower than the premium
6 charged in Fiscal Year 1995. For Fiscal Year 2003, the
7 premium shall not exceed 110% of the premium actually charged
8 in Fiscal Year 2002. For Fiscal Year 2004, the premium shall
9 not exceed 112% of the premium actually charged in Fiscal
10 Year 2003.
11 Rates and premiums may be based in part on age and
12 eligibility for federal medicare coverage.
13 The cost of health benefits under the program shall be
14 paid as follows:
15 (1) For a TRS benefit recipient selecting a managed
16 care program, up to 75% of the total insurance rate shall
17 be paid from the Teacher Health Insurance Security Fund.
18 (2) For a TRS benefit recipient selecting the major
19 medical coverage program, up to 50% of the total
20 insurance rate shall be paid from the Teacher Health
21 Insurance Security Fund if a managed care program is
22 accessible, as determined by the Teachers' Retirement
23 System.
24 (3) For a TRS benefit recipient selecting the major
25 medical coverage program, up to 75% of the total
26 insurance rate shall be paid from the Teacher Health
27 Insurance Security Fund if a managed care program is not
28 accessible, as determined by the Teachers' Retirement
29 System.
30 (4) The balance of the rate of insurance, including
31 the entire premium of any coverage for TRS dependent
32 beneficiaries that has been elected, shall be paid by
33 deductions authorized by the TRS benefit recipient to be
34 withheld from his or her monthly annuity or benefit
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1 payment from the Teachers' Retirement System; except that
2 (i) if the balance of the cost of coverage exceeds the
3 amount of the monthly annuity or benefit payment, the
4 difference shall be paid directly to the Teachers'
5 Retirement System by the TRS benefit recipient, and (ii)
6 all or part of the balance of the cost of coverage may,
7 at the school board's option, be paid to the Teachers'
8 Retirement System by the school board of the school
9 district from which the TRS benefit recipient retired, in
10 accordance with Section 10-22.3b of the School Code. The
11 Teachers' Retirement System shall promptly deposit all
12 moneys withheld by or paid to it under this subdivision
13 (e)(4) into the Teacher Health Insurance Security Fund.
14 These moneys shall not be considered assets of the
15 Retirement System.
16 (f) Financing. Beginning July 1, 1995, all revenues
17 arising from the administration of the health benefit
18 programs established under Article 16 of the Illinois Pension
19 Code or this Section shall be deposited into the Teacher
20 Health Insurance Security Fund, which is hereby created as a
21 nonappropriated trust fund to be held outside the State
22 Treasury, with the State Treasurer as custodian. Any
23 interest earned on moneys in the Teacher Health Insurance
24 Security Fund shall be deposited into the Fund.
25 Moneys in the Teacher Health Insurance Security Fund
26 shall be used only to pay the costs of the health benefit
27 program established under this Section, including associated
28 administrative costs, and the costs associated with the
29 health benefit program established under Article 16 of the
30 Illinois Pension Code, as authorized in this Section.
31 Beginning July 1, 1995, the Department of Central Management
32 Services may make expenditures from the Teacher Health
33 Insurance Security Fund for those costs.
34 After other funds authorized for the payment of the costs
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1 of the health benefit program established under Article 16 of
2 the Illinois Pension Code are exhausted and until January 1,
3 1996 (or such later date as may be agreed upon by the
4 Director of Central Management Services and the Secretary of
5 the Teachers' Retirement System), the Secretary of the
6 Teachers' Retirement System may make expenditures from the
7 Teacher Health Insurance Security Fund as necessary to pay up
8 to 75% of the cost of providing health coverage to eligible
9 benefit recipients (as defined in Sections 16-153.1 and
10 16-153.3 of the Illinois Pension Code) who are enrolled in
11 the Article 16 health benefit program and to facilitate the
12 transfer of administration of the health benefit program to
13 the Department of Central Management Services.
14 (g) Contract for benefits. The Director shall by
15 contract, self-insurance, or otherwise make available the
16 program of health benefits for TRS benefit recipients and
17 their TRS dependent beneficiaries that is provided for in
18 this Section. The contract or other arrangement for the
19 provision of these health benefits shall be on terms deemed
20 by the Director to be in the best interest of the State of
21 Illinois and the TRS benefit recipients based on, but not
22 limited to, such criteria as administrative cost, service
23 capabilities of the carrier or other contractor, and the
24 costs of the benefits.
25 (h) Continuation and termination of program. It is the
26 intention of the General Assembly that the program of health
27 benefits provided under this Section be maintained on an
28 ongoing, affordable basis through June 30, 2004. The program
29 of health benefits provided under this Section is terminated
30 on July 1, 2004.
31 The program of health benefits provided under this
32 Section may be amended by the State and is not intended to be
33 a pension or retirement benefit subject to protection under
34 Article XIII, Section 5 of the Illinois Constitution.
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1 (i) Repeal. This Section is repealed on July 1, 2004.
2 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
3 (5 ILCS 375/6.6)
4 (Section scheduled to be repealed on July 1, 2004)
5 Sec. 6.6. Contributions to the Teacher Health Insurance
6 Security Fund.
7 (a) Beginning July 1, 1995, all active contributors of
8 the Teachers' Retirement System (established under Article 16
9 of the Illinois Pension Code) who are not employees of a
10 department as defined in Section 3 of this Act shall make
11 contributions toward the cost of annuitant and survivor
12 health benefits. These contributions shall be at the
13 following rates: until January 1, 2002, rate of 0.5% of
14 salary; beginning January 1, 2002, 0.65% of salary; beginning
15 July 1, 2003, 0.75% of salary.
16 These contributions shall be deducted by the employer and
17 paid to the System as service agent for the Department of
18 Central Management Services. The System may use the same
19 processes for collecting the contributions required by this
20 subsection that it uses to collect contributions received
21 from school districts and other covered employers under
22 Sections 16-154 and 16-155 of the Illinois Pension Code.
23 An employer may agree to pick up or pay the contributions
24 required under this subsection on behalf of the teacher; such
25 contributions shall be deemed to have to have been paid by
26 the teacher. Beginning January 1, 2002, if the employer does
27 not directly pay the required member contribution, then the
28 employer shall reduce the member's salary by an amount equal
29 to the required contribution and shall then pay the
30 contribution on behalf of the member. This reduction shall
31 not change the amounts reported as creditable earnings to the
32 Teachers' Retirement System.
33 A person who purchases optional service credit under
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1 Article 16 of the Illinois Pension Code for a period after
2 June 30, 1995 must also make a contribution under this
3 subsection for that optional credit, at the rate provided in
4 subsection (a), based on of 0.5% of the salary used in
5 computing the optional service credit, plus interest on this
6 employee contribution. This contribution shall be collected
7 by the System as service agent for the Department of Central
8 Management Services. The contribution required under this
9 subsection for the optional service credit must be paid in
10 full before any annuity based on that credit begins.
11 (a-5) Beginning January 1, 2002, every employer of a
12 teacher (other than an employer that is a department as
13 defined in Section 3 of this Act) shall pay an employer
14 contribution toward the cost of annuitant and survivor health
15 benefits. These contributions shall be computed as follows:
16 (1) Beginning January 1, 2002 through June 30,
17 2003, the employer contribution shall be equal to 0.4% of
18 each teacher's salary.
19 (2) Beginning July 1, 2003, the employer
20 contribution shall be equal to 0.5% of each teacher's
21 salary.
22 These contributions shall be paid by the employer to the
23 System as service agent for the Department of Central
24 Management Services. The System may use the same processes
25 for collecting the contributions required by this subsection
26 that it uses to collect contributions received from school
27 districts and other covered employers under the Illinois
28 Pension Code.
29 The school district or other employing unit may pay these
30 employer contributions out of any source of funding available
31 for that purpose and shall forward the contributions to the
32 System on the schedule established for the payment of member
33 contributions.
34 (b) The Teachers' Retirement System shall promptly
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1 deposit all moneys collected under subsections subsection (a)
2 and (a-5) of this Section into the Teacher Health Insurance
3 Security Fund created in Section 6.5 of this Act. The moneys
4 collected under this Section shall be used only for the
5 purposes authorized in Section 6.5 of this Act and shall not
6 be considered to be assets of the Teachers' Retirement
7 System. Contributions made under this Section are not
8 transferable to other pension funds or retirement systems and
9 are not refundable upon termination of service.
10 (c) On or before November 15 of each year, the Board of
11 Trustees of the Teachers' Retirement System shall certify to
12 the Governor, the Director of Central Management Services,
13 and the State Comptroller its estimate of the total amount of
14 contributions to be paid under subsection (a) of this Section
15 6.6 for the next fiscal year. The amount certified shall be
16 decreased or increased each year by the amount that the
17 actual active teacher contributions either fell short of or
18 exceeded the estimate used by the Board in making the
19 certification for the previous fiscal year. The
20 certification shall include a detailed explanation of the
21 methods and information that the Board relied upon in
22 preparing its estimate. As soon as possible after the
23 effective date of this amendatory Act of the 92nd General
24 Assembly Section, the Board shall recalculate and recertify
25 its certifications for fiscal years 2002 and 2003 submit its
26 estimate for fiscal year 1996.
27 (d) Beginning in fiscal year 1996, on the first day of
28 each month, or as soon thereafter as may be practical, the
29 State Treasurer and the State Comptroller shall transfer from
30 the General Revenue Fund to the Teacher Health Insurance
31 Security Fund 1/12 of the annual amount appropriated for that
32 fiscal year to the State Comptroller for deposit into the
33 Teacher Health Insurance Security Fund under Section 1.3 of
34 the State Pension Funds Continuing Appropriation Act.
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1 (e) Except where otherwise specified in this Section,
2 the definitions that apply to Article 16 of the Illinois
3 Pension Code apply to this Section.
4 (f) This Section is repealed on July 1, 2004.
5 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95;
6 90-448, eff. 8-16-97.)
7 Section 10. The Department of Central Management
8 Services Law of the Civil Administrative Code of Illinois is
9 amended by adding Section 405-22 as follows:
10 (20 ILCS 405/405-22 new)
11 (Section scheduled to be repealed on July 1, 2002)
12 Sec. 405-22. Teacher Health Insurance Funding Task
13 Force.
14 (a) A Teacher Health Insurance Funding Task Force is
15 hereby created within the Department of Central Management
16 Services. The Task Force shall consist of 23 members
17 appointed as follows:
18 (1) Three members appointed by the President of the
19 Senate.
20 (2) Three members appointed by the Minority Leader
21 of the Senate.
22 (3) Three members appointed by the Speaker of the
23 House of Representatives.
24 (4) Three members appointed by the Minority Leader
25 of the House of Representatives.
26 (5) One member appointed by the Illinois Retired
27 Teachers Association.
28 (6) One member appointed by the Illinois Education
29 Association.
30 (7) One member appointed by the Illinois Federation
31 of Teachers.
32 (8) One member appointed by the Illinois
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1 Association of School Boards.
2 (9) One member appointed by the Illinois
3 Association of School Administrators.
4 (10) One member appointed by the Illinois
5 Association of School Business Officials.
6 (11) Three members appointed by the Governor,
7 including one who has experience in the insurance
8 industry.
9 (12) The Director of Central Management Services,
10 ex officio, or a person designated by the Director.
11 (13) The Executive Director of the Teachers'
12 Retirement System of Illinois, ex officio, or a person
13 designated by the Executive Director.
14 Entities making appointments shall do so by filing their
15 respective designations, in writing, with the Director of
16 Central Management Services.
17 One of the members appointed by the Governor shall serve
18 as the Chair of the Task Force.
19 (b) The Task Force shall convene on December 1, 2001 and
20 thereafter meet at the call of the chair. Members of the
21 Task Force shall not be compensated for their service.
22 (c) The Task Force shall study the funding of the
23 Teacher Health Insurance Security Fund and the health benefit
24 programs that receive funding from that Fund.
25 The Task Force shall report its findings and
26 recommendations to the Governor and the General Assembly on
27 or before April 1, 2002.
28 (d) The Task Force is abolished and this Section is
29 repealed on July 1, 2002.
30 Section 15. The State Finance Act is amended by changing
31 Section 8g as follows:
32 (30 ILCS 105/8g)
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1 Sec. 8g. Transfers from General Revenue Fund.
2 (a) In addition to any other transfers that may be
3 provided for by law, as soon as may be practical after the
4 effective date of this amendatory Act of the 91st General
5 Assembly, the State Comptroller shall direct and the State
6 Treasurer shall transfer the sum of $10,000,000 from the
7 General Revenue Fund to the Motor Vehicle License Plate Fund
8 created by Senate Bill 1028 of the 91st General Assembly.
9 (b) In addition to any other transfers that may be
10 provided for by law, as soon as may be practical after the
11 effective date of this amendatory Act of the 91st General
12 Assembly, the State Comptroller shall direct and the State
13 Treasurer shall transfer the sum of $25,000,000 from the
14 General Revenue Fund to the Fund for Illinois' Future created
15 by Senate Bill 1066 of the 91st General Assembly.
16 (c) In addition to any other transfers that may be
17 provided for by law, on August 30 of each fiscal year's
18 license period, the Illinois Liquor Control Commission shall
19 direct and the State Comptroller and State Treasurer shall
20 transfer from the General Revenue Fund to the Youth
21 Alcoholism and Substance Abuse Prevention Fund an amount
22 equal to the number of retail liquor licenses issued for that
23 fiscal year multiplied by $50.
24 (d) The payments to programs required under subsection
25 (d) of Section 28.1 of the Horse Racing Act of 1975 shall be
26 made, pursuant to appropriation, from the special funds
27 referred to in the statutes cited in that subsection, rather
28 than directly from the General Revenue Fund.
29 Beginning January 1, 2000, on the first day of each
30 month, or as soon as may be practical thereafter, the State
31 Comptroller shall direct and the State Treasurer shall
32 transfer from the General Revenue Fund to each of the special
33 funds from which payments are to be made under Section
34 28.1(d) of the Horse Racing Act of 1975 an amount equal to
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1 1/12 of the annual amount required for those payments from
2 that special fund, which annual amount shall not exceed the
3 annual amount for those payments from that special fund for
4 the calendar year 1998. The special funds to which transfers
5 shall be made under this subsection (d) include, but are not
6 necessarily limited to, the Agricultural Premium Fund; the
7 Metropolitan Exposition Auditorium and Office Building Fund;
8 the Fair and Exposition Fund; the Standardbred Breeders Fund;
9 the Thoroughbred Breeders Fund; and the Illinois Veterans'
10 Rehabilitation Fund.
11 (e) In addition to any other transfers that may be
12 provided for by law, as soon as may be practical after the
13 effective date of this amendatory Act of the 91st General
14 Assembly, but in no event later than June 30, 2000, the State
15 Comptroller shall direct and the State Treasurer shall
16 transfer the sum of $15,000,000 from the General Revenue Fund
17 to the Fund for Illinois' Future.
18 (f) In addition to any other transfers that may be
19 provided for by law, as soon as may be practical after the
20 effective date of this amendatory Act of the 91st General
21 Assembly, but in no event later than June 30, 2000, the State
22 Comptroller shall direct and the State Treasurer shall
23 transfer the sum of $70,000,000 from the General Revenue Fund
24 to the Long-Term Care Provider Fund.
25 (f-1) In fiscal year 2002, in addition to any other
26 transfers that may be provided for by law, at the direction
27 of and upon notification from the Governor, the State
28 Comptroller shall direct and the State Treasurer shall
29 transfer amounts not exceeding a total of $160,000,000 from
30 the General Revenue Fund to the Long-Term Care Provider Fund.
31 (g) In addition to any other transfers that may be
32 provided for by law, on July 1, 2001, or as soon thereafter
33 as may be practical, the State Comptroller shall direct and
34 the State Treasurer shall transfer the sum of $1,200,000 from
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1 the General Revenue Fund to the Violence Prevention Fund.
2 (h) In each of fiscal years 2002 through 2007, but not
3 thereafter, in addition to any other transfers that may be
4 provided for by law, the State Comptroller shall direct and
5 the State Treasurer shall transfer $5,000,000 from the
6 General Revenue Fund to the Tourism Promotion Fund.
7 (i) On or after July 1, 2001 and until May 1, 2002, in
8 addition to any other transfers that may be provided for by
9 law, at the direction of and upon notification from the
10 Governor, the State Comptroller shall direct and the State
11 Treasurer shall transfer amounts not exceeding a total of
12 $80,000,000 from the General Revenue Fund to the Tobacco
13 Settlement Recovery Fund. Any amounts so transferred shall
14 be re-transferred by the State Comptroller and the State
15 Treasurer from the Tobacco Settlement Recovery Fund to the
16 General Revenue Fund at the direction of and upon
17 notification from the Governor, but in any event on or before
18 June 30, 2002.
19 (j) On or after July 1, 2001 and no later than June 30,
20 2002, in addition to any other transfers that may be provided
21 for by law, at the direction of and upon notification from
22 the Governor, the State Comptroller shall direct and the
23 State Treasurer shall transfer amounts not to exceed the
24 following sums into the Statistical Services Revolving Fund:
25 From the General Revenue Fund............... $8,450,000
26 From the Public Utility Fund................ 1,700,000
27 From the Transportation Regulatory Fund..... 2,650,000
28 From the Title III Social Security and
29 Employment Fund........................... 3,700,000
30 From the Professions Indirect Cost Fund..... 4,050,000
31 From the Underground Storage Tank Fund...... 550,000
32 From the Agricultural Premium Fund.......... 750,000
33 From the State Pensions Fund................ 200,000
34 From the Road Fund.......................... 2,000,000
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1 From the Health Facilities
2 Planning Fund............................. 1,000,000
3 From the Savings and Residential Finance
4 Regulatory Fund........................... 130,800
5 From the Appraisal Administration Fund...... 28,600
6 From the Pawnbroker Regulation Fund......... 3,600
7 From the Auction Regulation
8 Administration Fund....................... 35,800
9 From the Bank and Trust Company Fund........ 634,800
10 From the Real Estate License
11 Administration Fund....................... 313,600
12 (k) In addition to any other transfers that may be
13 provided for by law, as soon as may be practical after the
14 effective date of this amendatory Act of the 92nd General
15 Assembly, the State Comptroller shall direct and the State
16 Treasurer shall transfer the sum of $2,000,000 from the
17 General Revenue Fund to the Teachers Health Insurance
18 Security Fund.
19 (k-1) In addition to any other transfers that may be
20 provided for by law, on July 1, 2002, or as soon as may be
21 practical thereafter, the State Comptroller shall direct and
22 the State Treasurer shall transfer the sum of $2,000,000 from
23 the General Revenue Fund to the Teachers Health Insurance
24 Security Fund.
25 (k-2) In addition to any other transfers that may be
26 provided for by law, on July 1, 2003, or as soon as may be
27 practical thereafter, the State Comptroller shall direct and
28 the State Treasurer shall transfer the sum of $2,000,000 from
29 the General Revenue Fund to the Teachers Health Insurance
30 Security Fund.
31 (Source: P.A. 91-25, eff. 6-9-99; 91-704, eff. 5-17-00;
32 92-11, eff. 6-11-01.)
33 Section 20. The Illinois Pension Code is amended by
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1 changing Section 16-158 as follows:
2 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
3 Sec. 16-158. Contributions by State and other employing
4 units.
5 (a) The State shall make contributions to the System by
6 means of appropriations from the Common School Fund and other
7 State funds of amounts which, together with other employer
8 contributions, employee contributions, investment income, and
9 other income, will be sufficient to meet the cost of
10 maintaining and administering the System on a 90% funded
11 basis in accordance with actuarial recommendations.
12 The Board shall determine the amount of State
13 contributions required for each fiscal year on the basis of
14 the actuarial tables and other assumptions adopted by the
15 Board and the recommendations of the actuary, using the
16 formula in subsection (b-3).
17 (a-1) Annually, on or before November 15, the board
18 shall certify to the Governor the amount of the required
19 State contribution for the coming fiscal year. The
20 certification shall include a copy of the actuarial
21 recommendations upon which it is based.
22 (b) Through State fiscal year 1995, the State
23 contributions shall be paid to the System in accordance with
24 Section 18-7 of the School Code.
25 (b-1) Beginning in State fiscal year 1996, on the 15th
26 day of each month, or as soon thereafter as may be
27 practicable, the Board shall submit vouchers for payment of
28 State contributions to the System, in a total monthly amount
29 of one-twelfth of the required annual State contribution
30 certified under subsection (a-1). These vouchers shall be
31 paid by the State Comptroller and Treasurer by warrants drawn
32 on the funds appropriated to the System for that fiscal year.
33 If in any month the amount remaining unexpended from all
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1 other appropriations to the System for the applicable fiscal
2 year (including the appropriations to the System under
3 Section 8.12 of the State Finance Act and Section 1 of the
4 State Pension Funds Continuing Appropriation Act) is less
5 than the amount lawfully vouchered under this subsection, the
6 difference shall be paid from the Common School Fund under
7 the continuing appropriation authority provided in Section
8 1.1 of the State Pension Funds Continuing Appropriation Act.
9 (b-2) Allocations from the Common School Fund
10 apportioned to school districts not coming under this System
11 shall not be diminished or affected by the provisions of this
12 Article.
13 (b-3) For State fiscal years 2011 through 2045, the
14 minimum contribution to the System to be made by the State
15 for each fiscal year shall be an amount determined by the
16 System to be sufficient to bring the total assets of the
17 System up to 90% of the total actuarial liabilities of the
18 System by the end of State fiscal year 2045. In making these
19 determinations, the required State contribution shall be
20 calculated each year as a level percentage of payroll over
21 the years remaining to and including fiscal year 2045 and
22 shall be determined under the projected unit credit actuarial
23 cost method.
24 For State fiscal years 1996 through 2010, the State
25 contribution to the System, as a percentage of the applicable
26 employee payroll, shall be increased in equal annual
27 increments so that by State fiscal year 2011, the State is
28 contributing at the rate required under this Section; except
29 that in the following specified State fiscal years, the State
30 contribution to the System shall not be less than the
31 following indicated percentages of the applicable employee
32 payroll, even if the indicated percentage will produce a
33 State contribution in excess of the amount otherwise required
34 under this subsection and subsection (a), and notwithstanding
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1 any contrary certification made under subsection (a-1) before
2 the effective date of this amendatory Act of 1998: 10.02% in
3 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
4 2002; 12.86% in FY 2003; 13.56% in FY 2004; 14.25% in FY
5 2005; 14.95% in FY 2006; 15.65% in FY 2007; 16.34% in FY
6 2008; 17.04% in FY 2009; and 17.74% in FY 2010.
7 Beginning in State fiscal year 2046, the minimum State
8 contribution for each fiscal year shall be the amount needed
9 to maintain the total assets of the System at 90% of the
10 total actuarial liabilities of the System.
11 (c) Payment of the required State contributions and of
12 all pensions, retirement annuities, death benefits, refunds,
13 and other benefits granted under or assumed by this System,
14 and all expenses in connection with the administration and
15 operation thereof, are obligations of the State.
16 If members are paid from special trust or federal funds
17 which are administered by the employing unit, whether school
18 district or other unit, the employing unit shall pay to the
19 System from such funds the full accruing retirement costs
20 based upon that service, as determined by the System.
21 Employer contributions, based on salary paid to members from
22 federal funds, may be forwarded by the distributing agency of
23 the State of Illinois to the System prior to allocation, in
24 an amount determined in accordance with guidelines
25 established by such agency and the System.
26 (d) Effective July 1, 1986, any employer of a teacher as
27 defined in paragraph (8) of Section 16-106 shall pay the
28 employer's normal cost of benefits based upon the teacher's
29 service, in addition to employee contributions, as determined
30 by the System. Such employer contributions shall be
31 forwarded monthly in accordance with guidelines established
32 by the System.
33 However, with respect to benefits granted under Section
34 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
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1 of Section 16-106, the employer's contribution shall be 12%
2 (rather than 20%) of the member's highest annual salary rate
3 for each year of creditable service granted, and the employer
4 shall also pay the required employee contribution on behalf
5 of the teacher. For the purposes of Sections 16-133.4 and
6 16-133.5, a teacher as defined in paragraph (8) of Section
7 16-106 who is serving in that capacity while on leave of
8 absence from another employer under this Article shall not be
9 considered an employee of the employer from which the teacher
10 is on leave.
11 (e) Beginning July 1, 1998, every employer of a teacher
12 shall pay to the System an employer contribution computed as
13 follows:
14 (1) Beginning July 1, 1998 through June 30, 1999,
15 the employer contribution shall be equal to 0.3% of each
16 teacher's salary.
17 (2) Beginning July 1, 1999 and thereafter, the
18 employer contribution shall be equal to 0.58% of each
19 teacher's salary.
20 The school district or other employing unit may pay these
21 employer contributions out of any source of funding available
22 for that purpose and shall forward the contributions to the
23 System on the schedule established for the payment of member
24 contributions.
25 These employer contributions are intended to offset a
26 portion of the cost to the System of the increases in
27 retirement benefits resulting from this amendatory Act of
28 1998.
29 Each employer of teachers is entitled to a credit against
30 the contributions required under this subsection (e) with
31 respect to salaries paid to teachers for the period January
32 1, 2002 through June 30, 2003, equal to the amount paid by
33 that employer under subsection (a-5) of Section 6.6 of the
34 State Employees Group Insurance Act of 1971 with respect to
-19- LRB9207962EGfgam02
1 salaries paid to teachers for that period.
2 The additional 1% employee contribution required under
3 Section 16-152 by this amendatory Act of 1998 is the
4 responsibility of the teacher and not the teacher's employer,
5 unless the employer agrees, through collective bargaining or
6 otherwise, to make the contribution on behalf of the teacher.
7 If an employer is required by a contract in effect on May
8 1, 1998 between the employer and an employee organization to
9 pay, on behalf of all its full-time employees covered by this
10 Article, all mandatory employee contributions required under
11 this Article, then the employer shall be excused from paying
12 the employer contribution required under this subsection (e)
13 for the balance of the term of that contract. The employer
14 and the employee organization shall jointly certify to the
15 System the existence of the contractual requirement, in such
16 form as the System may prescribe. This exclusion shall cease
17 upon the termination, extension, or renewal of the contract
18 at any time after May 1, 1998.
19 (Source: P.A. 90-582, eff. 5-27-98.)
20 Section 90. The State Mandates Act is amended by adding
21 Section 8.26 as follows:
22 (30 ILCS 805/8.26 new)
23 Sec. 8.26. Exempt mandate. Notwithstanding Sections 6
24 and 8 of this Act, no reimbursement by the State is required
25 for the implementation of any mandate created by this
26 amendatory Act of the 92nd General Assembly.
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.".