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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Sections 15-155 and 16-158 as follows:
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6 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
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7 | Sec. 15-155. Employer contributions.
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8 | (a) The State of Illinois shall make contributions by | ||||||||||||||||||||||||||
9 | appropriations of
amounts which, together with the other | ||||||||||||||||||||||||||
10 | employer contributions from trust,
federal, and other funds, | ||||||||||||||||||||||||||
11 | employee contributions, income from investments,
and other | ||||||||||||||||||||||||||
12 | income of this System, will be sufficient to meet the cost of
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13 | maintaining and administering the System on a 90% funded basis | ||||||||||||||||||||||||||
14 | in accordance
with actuarial recommendations.
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15 | The Board shall determine the amount of State contributions | ||||||||||||||||||||||||||
16 | required for
each fiscal year on the basis of the actuarial | ||||||||||||||||||||||||||
17 | tables and other assumptions
adopted by the Board and the | ||||||||||||||||||||||||||
18 | recommendations of the actuary, using the formula
in subsection | ||||||||||||||||||||||||||
19 | (a-1).
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20 | (a-1) For State fiscal years 2012 through 2045, the minimum | ||||||||||||||||||||||||||
21 | contribution
to the System to be made by the State for each | ||||||||||||||||||||||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||||||||||||||||||||||
23 | sufficient to bring the total assets of the
System up to 90% of |
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| |||||||
1 | the total actuarial liabilities of the System by the end of
| ||||||
2 | State fiscal year 2045. In making these determinations, the | ||||||
3 | required State
contribution shall be calculated each year as a | ||||||
4 | level percentage of payroll
over the years remaining to and | ||||||
5 | including fiscal year 2045 and shall be
determined under the | ||||||
6 | projected unit credit actuarial cost method.
| ||||||
7 | For each of State fiscal years 2018, 2019, and 2020, the | ||||||
8 | State shall make an additional contribution to the System equal | ||||||
9 | to 2% of the total payroll of each employee who is deemed to | ||||||
10 | have elected the benefits under Section 1-161 or who has made | ||||||
11 | the election under subsection (c) of Section 1-161. | ||||||
12 | A change in an actuarial or investment assumption that | ||||||
13 | increases or
decreases the required State contribution and | ||||||
14 | first
applies in State fiscal year 2018 or thereafter shall be
| ||||||
15 | implemented in equal annual amounts over a 5-year period
| ||||||
16 | beginning in the State fiscal year in which the actuarial
| ||||||
17 | change first applies to the required State contribution. | ||||||
18 | A change in an actuarial or investment assumption that | ||||||
19 | increases or
decreases the required State contribution and | ||||||
20 | first
applied to the State contribution in fiscal year 2014, | ||||||
21 | 2015, 2016, or 2017 shall be
implemented: | ||||||
22 | (i) as already applied in State fiscal years before | ||||||
23 | 2018; and | ||||||
24 | (ii) in the portion of the 5-year period beginning in | ||||||
25 | the State fiscal year in which the actuarial
change first | ||||||
26 | applied that occurs in State fiscal year 2018 or |
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1 | thereafter, by calculating the change in equal annual | ||||||
2 | amounts over that 5-year period and then implementing it at | ||||||
3 | the resulting annual rate in each of the remaining fiscal | ||||||
4 | years in that 5-year period. | ||||||
5 | For State fiscal years 1996 through 2005, the State | ||||||
6 | contribution to
the System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be
increased in equal annual increments | ||||||
8 | so that by State fiscal year 2011, the
State is contributing at | ||||||
9 | the rate required under this Section.
| ||||||
10 | Notwithstanding any other provision of this Article, the | ||||||
11 | total required State
contribution for State fiscal year 2006 is | ||||||
12 | $166,641,900.
| ||||||
13 | Notwithstanding any other provision of this Article, the | ||||||
14 | total required State
contribution for State fiscal year 2007 is | ||||||
15 | $252,064,100.
| ||||||
16 | For each of State fiscal years 2008 through 2009, the State | ||||||
17 | contribution to
the System, as a percentage of the applicable | ||||||
18 | employee payroll, shall be
increased in equal annual increments | ||||||
19 | from the required State contribution for State fiscal year | ||||||
20 | 2007, so that by State fiscal year 2011, the
State is | ||||||
21 | contributing at the rate otherwise required under this Section.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State contribution for State fiscal year 2010 is | ||||||
24 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
25 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
26 | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
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| |||||||
1 | share of bond sale expenses determined by the System's share of | ||||||
2 | total bond proceeds, (ii) any amounts received from the General | ||||||
3 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
4 | proceeds due to the issuance of discounted bonds, if | ||||||
5 | applicable. | ||||||
6 | Notwithstanding any other provision of this Article, the
| ||||||
7 | total required State contribution for State fiscal year 2011 is
| ||||||
8 | the amount recertified by the System on or before April 1, 2011 | ||||||
9 | pursuant to Section 15-165 and shall be made from the State | ||||||
10 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
11 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
12 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
13 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
14 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
15 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
16 | discounted bonds, if
applicable. | ||||||
17 | Beginning in State fiscal year 2046, the minimum State | ||||||
18 | contribution for
each fiscal year shall be the amount needed to | ||||||
19 | maintain the total assets of
the System at 90% of the total | ||||||
20 | actuarial liabilities of the System.
| ||||||
21 | Amounts received by the System pursuant to Section 25 of | ||||||
22 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
23 | Finance Act in any fiscal year do not reduce and do not | ||||||
24 | constitute payment of any portion of the minimum State | ||||||
25 | contribution required under this Article in that fiscal year. | ||||||
26 | Such amounts shall not reduce, and shall not be included in the |
| |||||||
| |||||||
1 | calculation of, the required State contributions under this | ||||||
2 | Article in any future year until the System has reached a | ||||||
3 | funding ratio of at least 90%. A reference in this Article to | ||||||
4 | the "required State contribution" or any substantially similar | ||||||
5 | term does not include or apply to any amounts payable to the | ||||||
6 | System under Section 25 of the Budget Stabilization Act. | ||||||
7 | Notwithstanding any other provision of this Section, the | ||||||
8 | required State
contribution for State fiscal year 2005 and for | ||||||
9 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
10 | under this Section and
certified under Section 15-165, shall | ||||||
11 | not exceed an amount equal to (i) the
amount of the required | ||||||
12 | State contribution that would have been calculated under
this | ||||||
13 | Section for that fiscal year if the System had not received any | ||||||
14 | payments
under subsection (d) of Section 7.2 of the General | ||||||
15 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
16 | total debt service payments for that fiscal
year on the bonds | ||||||
17 | issued in fiscal year 2003 for the purposes of that Section | ||||||
18 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
19 | the same as the System's portion of
the total moneys | ||||||
20 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
21 | Obligation Bond Act. In determining this maximum for State | ||||||
22 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
23 | in item (i) shall be increased, as a percentage of the | ||||||
24 | applicable employee payroll, in equal increments calculated | ||||||
25 | from the sum of the required State contribution for State | ||||||
26 | fiscal year 2007 plus the applicable portion of the State's |
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| |||||||
1 | total debt service payments for fiscal year 2007 on the bonds | ||||||
2 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
3 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
4 | 2011, the
State is contributing at the rate otherwise required | ||||||
5 | under this Section.
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6 | (a-2) Beginning in fiscal year 2018, each employer under | ||||||
7 | this Article shall pay to the System a required contribution | ||||||
8 | determined as a percentage of projected payroll and sufficient | ||||||
9 | to produce an annual amount equal to: | ||||||
10 | (i) for each of fiscal years 2018, 2019, and 2020, the | ||||||
11 | defined benefit normal cost of the defined benefit plan, | ||||||
12 | less the employee contribution, for each employee of that | ||||||
13 | employer who has elected or who is deemed to have elected | ||||||
14 | the benefits under Section 1-161 or who has made the | ||||||
15 | election under subsection (c) of Section 1-161; for fiscal | ||||||
16 | year 2021 and each fiscal year thereafter, the defined | ||||||
17 | benefit normal cost of the defined benefit plan, less the | ||||||
18 | employee contribution, plus 2%, for each employee of that | ||||||
19 | employer who has elected or who is deemed to have elected | ||||||
20 | the benefits under Section 1-161 or who has made the | ||||||
21 | election under subsection (c) of Section 1-161; plus | ||||||
22 | (ii) the amount required for that fiscal year to | ||||||
23 | amortize any unfunded actuarial accrued liability | ||||||
24 | associated with the present value of liabilities | ||||||
25 | attributable to the employer's account under Section | ||||||
26 | 15-155.2, determined
as a level percentage of payroll over |
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| |||||||
1 | a 30-year rolling amortization period. | ||||||
2 | In determining contributions required under item (i) of | ||||||
3 | this subsection, the System shall determine an aggregate rate | ||||||
4 | for all employers, expressed as a percentage of projected | ||||||
5 | payroll. | ||||||
6 | In determining the contributions required under item (ii) | ||||||
7 | of this subsection, the amount shall be computed by the System | ||||||
8 | on the basis of the actuarial assumptions and tables used in | ||||||
9 | the most recent actuarial valuation of the System that is | ||||||
10 | available at the time of the computation. | ||||||
11 | The contributions required under this subsection (a-2) | ||||||
12 | shall be paid by an employer concurrently with that employer's | ||||||
13 | payroll payment period. The State, as the actual employer of an | ||||||
14 | employee, shall make the required contributions under this | ||||||
15 | subsection. | ||||||
16 | As used in this subsection, "academic year" means the | ||||||
17 | 12-month period beginning September 1. | ||||||
18 | (b) If an employee is paid from trust or federal funds, the | ||||||
19 | employer
shall pay to the Board contributions from those funds | ||||||
20 | which are
sufficient to cover the accruing normal costs on | ||||||
21 | behalf of the employee.
However, universities having employees | ||||||
22 | who are compensated out of local
auxiliary funds, income funds, | ||||||
23 | or service enterprise funds are not required
to pay such | ||||||
24 | contributions on behalf of those employees. The local auxiliary
| ||||||
25 | funds, income funds, and service enterprise funds of | ||||||
26 | universities shall not be
considered trust funds for the |
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1 | purpose of this Article, but funds of alumni
associations, | ||||||
2 | foundations, and athletic associations which are affiliated | ||||||
3 | with
the universities included as employers under this Article | ||||||
4 | and other employers
which do not receive State appropriations | ||||||
5 | are considered to be trust funds for
the purpose of this | ||||||
6 | Article.
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7 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
8 | each make
employer contributions to this System for their | ||||||
9 | respective firefighter
employees who participate in this | ||||||
10 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
11 | of contributions to be made by those municipalities shall
be | ||||||
12 | determined annually by the Board on the basis of the actuarial | ||||||
13 | assumptions
adopted by the Board and the recommendations of the | ||||||
14 | actuary, and shall be
expressed as a percentage of salary for | ||||||
15 | each such employee. The Board shall
certify the rate to the | ||||||
16 | affected municipalities as soon as may be practical.
The | ||||||
17 | employer contributions required under this subsection shall be | ||||||
18 | remitted by
the municipality to the System at the same time and | ||||||
19 | in the same manner as
employee contributions.
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20 | (c) Through State fiscal year 1995: The total employer | ||||||
21 | contribution shall
be apportioned among the various funds of | ||||||
22 | the State and other employers,
whether trust, federal, or other | ||||||
23 | funds, in accordance with actuarial procedures
approved by the | ||||||
24 | Board. State of Illinois contributions for employers receiving
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25 | State appropriations for personal services shall be payable | ||||||
26 | from appropriations
made to the employers or to the System. The |
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1 | contributions for Class I
community colleges covering earnings | ||||||
2 | other than those paid from trust and
federal funds, shall be | ||||||
3 | payable solely from appropriations to the Illinois
Community | ||||||
4 | College Board or the System for employer contributions.
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5 | (d) Beginning in State fiscal year 1996, the required State | ||||||
6 | contributions
to the System shall be appropriated directly to | ||||||
7 | the System and shall be payable
through vouchers issued in | ||||||
8 | accordance with subsection (c) of Section 15-165, except as | ||||||
9 | provided in subsection (g).
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10 | (e) The State Comptroller shall draw warrants payable to | ||||||
11 | the System upon
proper certification by the System or by the | ||||||
12 | employer in accordance with the
appropriation laws and this | ||||||
13 | Code.
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14 | (f) Normal costs under this Section means liability for
| ||||||
15 | pensions and other benefits which accrues to the System because | ||||||
16 | of the
credits earned for service rendered by the participants | ||||||
17 | during the
fiscal year and expenses of administering the | ||||||
18 | System, but shall not
include the principal of or any | ||||||
19 | redemption premium or interest on any bonds
issued by the Board | ||||||
20 | or any expenses incurred or deposits required in
connection | ||||||
21 | therewith.
| ||||||
22 | (g) If For academic years beginning on or after June 1, | ||||||
23 | 2005 and before July 1, 2018 and for earnings paid to a | ||||||
24 | participant under a contract or collective bargaining | ||||||
25 | agreement entered into, amended, or renewed before the | ||||||
26 | effective date of this amendatory Act of the 100th General |
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| |||||||
1 | Assembly, if the amount of a participant's earnings for any | ||||||
2 | academic year used to determine the final rate of earnings, | ||||||
3 | determined on a full-time equivalent basis, exceeds the amount | ||||||
4 | of his or her earnings with the same employer for the previous | ||||||
5 | academic year, determined on a full-time equivalent basis, by | ||||||
6 | more than 6%, the participant's employer shall pay to the | ||||||
7 | System, in addition to all other payments required under this | ||||||
8 | Section and in accordance with guidelines established by the | ||||||
9 | System, the present value of the increase in benefits resulting | ||||||
10 | from the portion of the increase in earnings that is in excess | ||||||
11 | of 6%. This present value shall be computed by the System on | ||||||
12 | the basis of the actuarial assumptions and tables used in the | ||||||
13 | most recent actuarial valuation of the System that is available | ||||||
14 | at the time of the computation. The System may require the | ||||||
15 | employer to provide any pertinent information or | ||||||
16 | documentation. | ||||||
17 | Whenever it determines that a payment is or may be required | ||||||
18 | under this subsection (g), the System shall calculate the | ||||||
19 | amount of the payment and bill the employer for that amount. | ||||||
20 | The bill shall specify the calculations used to determine the | ||||||
21 | amount due. If the employer disputes the amount of the bill, it | ||||||
22 | may, within 30 days after receipt of the bill, apply to the | ||||||
23 | System in writing for a recalculation. The application must | ||||||
24 | specify in detail the grounds of the dispute and, if the | ||||||
25 | employer asserts that the calculation is subject to subsection | ||||||
26 | (h) or (i) of this Section or that subsection (g-1) applies , |
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| |||||||
1 | must include an affidavit setting forth and attesting to all | ||||||
2 | facts within the employer's knowledge that are pertinent to the | ||||||
3 | applicability of that subsection. Upon receiving a timely | ||||||
4 | application for recalculation, the System shall review the | ||||||
5 | application and, if appropriate, recalculate the amount due.
| ||||||
6 | The employer contributions required under this subsection | ||||||
7 | (g) may be paid in the form of a lump sum within 90 days after | ||||||
8 | receipt of the bill. If the employer contributions are not paid | ||||||
9 | within 90 days after receipt of the bill, then interest will be | ||||||
10 | charged at a rate equal to the System's annual actuarially | ||||||
11 | assumed rate of return on investment compounded annually from | ||||||
12 | the 91st day after receipt of the bill. Payments must be | ||||||
13 | concluded within 3 years after the employer's receipt of the | ||||||
14 | bill. | ||||||
15 | When assessing payment for any amount due under this | ||||||
16 | subsection (g), the System shall include earnings, to the | ||||||
17 | extent not established by a participant under Section 15-113.11 | ||||||
18 | or 15-113.12, that would have been paid to the participant had | ||||||
19 | the participant not taken (i) periods of voluntary or | ||||||
20 | involuntary furlough occurring on or after July 1, 2015 and on | ||||||
21 | or before June 30, 2017 or (ii) periods of voluntary pay | ||||||
22 | reduction in lieu of furlough occurring on or after July 1, | ||||||
23 | 2015 and on or before June 30, 2017. Determining earnings that | ||||||
24 | would have been paid to a participant had the participant not | ||||||
25 | taken periods of voluntary or involuntary furlough or periods | ||||||
26 | of voluntary pay reduction shall be the responsibility of the |
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| |||||||
1 | employer, and shall be reported in a manner prescribed by the | ||||||
2 | System. | ||||||
3 | This subsection (g) does not apply to (1) Tier 2 hybrid | ||||||
4 | plan members and (2) Tier 2 defined benefit members who first | ||||||
5 | participate under this Article on or after the implementation | ||||||
6 | date of the Optional Hybrid Plan. | ||||||
7 | (g-1) (Blank). For academic years beginning on or after | ||||||
8 | July 1, 2018 and for earnings paid to a participant under a | ||||||
9 | contract or collective bargaining agreement entered into, | ||||||
10 | amended, or renewed on or after the effective date of this | ||||||
11 | amendatory Act of the 100th General Assembly, if the amount of | ||||||
12 | a participant's earnings for any academic year used to | ||||||
13 | determine the final rate of earnings, determined on a full-time | ||||||
14 | equivalent basis, exceeds the amount of his or her earnings | ||||||
15 | with the same employer for the previous academic year, | ||||||
16 | determined on a full-time equivalent basis, by more than 3%, | ||||||
17 | then the participant's employer shall pay to the System, in | ||||||
18 | addition to all other payments required under this Section and | ||||||
19 | in accordance with guidelines established by the System, the | ||||||
20 | present value of the increase in benefits resulting from the | ||||||
21 | portion of the increase in earnings that is in excess of 3%. | ||||||
22 | This present value shall be computed by the System on the basis | ||||||
23 | of the actuarial assumptions and tables used in the most recent | ||||||
24 | actuarial valuation of the System that is available at the time | ||||||
25 | of the computation. The System may require the employer to | ||||||
26 | provide any pertinent information or documentation. |
| |||||||
| |||||||
1 | Whenever it determines that a payment is or may be required | ||||||
2 | under this subsection (g-1), the System shall calculate the | ||||||
3 | amount of the payment and bill the employer for that amount. | ||||||
4 | The bill shall specify the calculations used to determine the | ||||||
5 | amount due. If the employer disputes the amount of the bill, it | ||||||
6 | may, within 30 days after receipt of the bill, apply to the | ||||||
7 | System in writing for a recalculation. The application must | ||||||
8 | specify in detail the grounds of the dispute and, if the | ||||||
9 | employer asserts that subsection (g) of this Section applies, | ||||||
10 | must include an affidavit setting forth and attesting to all | ||||||
11 | facts within the employer's knowledge that are pertinent to the | ||||||
12 | applicability of subsection (g). Upon receiving a timely | ||||||
13 | application for recalculation, the System shall review the | ||||||
14 | application and, if appropriate, recalculate the amount due. | ||||||
15 | The employer contributions required under this subsection | ||||||
16 | (g-1) may be paid in the form of a lump sum within 90 days after | ||||||
17 | receipt of the bill. If the employer contributions are not paid | ||||||
18 | within 90 days after receipt of the bill, then interest shall | ||||||
19 | be charged at a rate equal to the System's annual actuarially | ||||||
20 | assumed rate of return on investment compounded annually from | ||||||
21 | the 91st day after receipt of the bill. Payments must be | ||||||
22 | concluded within 3 years after the employer's receipt of the | ||||||
23 | bill. | ||||||
24 | This subsection (g-1) does not apply to (1) Tier 2 hybrid | ||||||
25 | plan members and (2) Tier 2 defined benefit members who first | ||||||
26 | participate under this Article on or after the implementation |
| |||||||
| |||||||
1 | date of the Optional Hybrid Plan. | ||||||
2 | (h) This subsection (h) applies only to payments made or | ||||||
3 | salary increases given on or after June 1, 2005 but before July | ||||||
4 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
5 | require the System to refund any payments received before July | ||||||
6 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
7 | When assessing payment for any amount due under subsection | ||||||
8 | (g), the System shall exclude earnings increases paid to | ||||||
9 | participants under contracts or collective bargaining | ||||||
10 | agreements entered into, amended, or renewed before June 1, | ||||||
11 | 2005.
| ||||||
12 | When assessing payment for any amount due under subsection | ||||||
13 | (g), the System shall exclude earnings increases paid to a | ||||||
14 | participant at a time when the participant is 10 or more years | ||||||
15 | from retirement eligibility under Section 15-135.
| ||||||
16 | When assessing payment for any amount due under subsection | ||||||
17 | (g), the System shall exclude earnings increases resulting from | ||||||
18 | overload work, including a contract for summer teaching, or | ||||||
19 | overtime when the employer has certified to the System, and the | ||||||
20 | System has approved the certification, that: (i) in the case of | ||||||
21 | overloads (A) the overload work is for the sole purpose of | ||||||
22 | academic instruction in excess of the standard number of | ||||||
23 | instruction hours for a full-time employee occurring during the | ||||||
24 | academic year that the overload is paid and (B) the earnings | ||||||
25 | increases are equal to or less than the rate of pay for | ||||||
26 | academic instruction computed using the participant's current |
| |||||||
| |||||||
1 | salary rate and work schedule; and (ii) in the case of | ||||||
2 | overtime, the overtime was necessary for the educational | ||||||
3 | mission. | ||||||
4 | When assessing payment for any amount due under subsection | ||||||
5 | (g), the System shall exclude any earnings increase resulting | ||||||
6 | from (i) a promotion for which the employee moves from one | ||||||
7 | classification to a higher classification under the State | ||||||
8 | Universities Civil Service System, (ii) a promotion in academic | ||||||
9 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
10 | promotion that the Illinois Community College Board has | ||||||
11 | recommended in accordance with subsection (k) of this Section. | ||||||
12 | These earnings increases shall be excluded only if the | ||||||
13 | promotion is to a position that has existed and been filled by | ||||||
14 | a member for no less than one complete academic year and the | ||||||
15 | earnings increase as a result of the promotion is an increase | ||||||
16 | that results in an amount no greater than the average salary | ||||||
17 | paid for other similar positions. | ||||||
18 | (i) When assessing payment for any amount due under | ||||||
19 | subsection (g), the System shall exclude any salary increase | ||||||
20 | described in subsection (h) of this Section given on or after | ||||||
21 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
22 | collective bargaining agreement entered into, amended, or | ||||||
23 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
24 | Notwithstanding any other provision of this Section, any | ||||||
25 | payments made or salary increases given after June 30, 2014 | ||||||
26 | shall be used in assessing payment for any amount due under |
| |||||||
| |||||||
1 | subsection (g) of this Section.
| ||||||
2 | (j) The System shall prepare a report and file copies of | ||||||
3 | the report with the Governor and the General Assembly by | ||||||
4 | January 1, 2007 that contains all of the following information: | ||||||
5 | (1) The number of recalculations required by the | ||||||
6 | changes made to this Section by Public Act 94-1057 for each | ||||||
7 | employer. | ||||||
8 | (2) The dollar amount by which each employer's | ||||||
9 | contribution to the System was changed due to | ||||||
10 | recalculations required by Public Act 94-1057. | ||||||
11 | (3) The total amount the System received from each | ||||||
12 | employer as a result of the changes made to this Section by | ||||||
13 | Public Act 94-4. | ||||||
14 | (4) The increase in the required State contribution | ||||||
15 | resulting from the changes made to this Section by Public | ||||||
16 | Act 94-1057. | ||||||
17 | (j-5) For academic years beginning on or after July 1, | ||||||
18 | 2017, if the amount of a participant's earnings for any school | ||||||
19 | year, determined on a full-time equivalent basis, exceeds the | ||||||
20 | amount of the salary set for the Governor, the participant's | ||||||
21 | employer shall pay to the System, in addition to all other | ||||||
22 | payments required under this Section and in accordance with | ||||||
23 | guidelines established by the System, an amount determined by | ||||||
24 | the System to be equal to the employer normal cost, as | ||||||
25 | established by the System and expressed as a total percentage | ||||||
26 | of payroll, multiplied by the amount of earnings in excess of |
| |||||||
| |||||||
1 | the amount of the salary set for the Governor. This amount | ||||||
2 | shall be computed by the System on the basis of the actuarial | ||||||
3 | assumptions and tables used in the most recent actuarial | ||||||
4 | valuation of the System that is available at the time of the | ||||||
5 | computation. The System may require the employer to provide any | ||||||
6 | pertinent information or documentation. | ||||||
7 | Whenever it determines that a payment is or may be required | ||||||
8 | under this subsection, the System shall calculate the amount of | ||||||
9 | the payment and bill the employer for that amount. The bill | ||||||
10 | shall specify the calculations used to determine the amount | ||||||
11 | due. If the employer disputes the amount of the bill, it may, | ||||||
12 | within 30 days after receipt of the bill, apply to the System | ||||||
13 | in writing for a recalculation. The application must specify in | ||||||
14 | detail the grounds of the dispute. Upon receiving a timely | ||||||
15 | application for recalculation, the System shall review the | ||||||
16 | application and, if appropriate, recalculate the amount due. | ||||||
17 | The employer contributions required under this subsection | ||||||
18 | may be paid in the form of a lump sum within 90 days after | ||||||
19 | receipt of the bill. If the employer contributions are not paid | ||||||
20 | within 90 days after receipt of the bill, then interest will be | ||||||
21 | charged at a rate equal to the System's annual actuarially | ||||||
22 | assumed rate of return on investment compounded annually from | ||||||
23 | the 91st day after receipt of the bill. Payments must be | ||||||
24 | concluded within 3 years after the employer's receipt of the | ||||||
25 | bill. | ||||||
26 | (k) The Illinois Community College Board shall adopt rules |
| |||||||
| |||||||
1 | for recommending lists of promotional positions submitted to | ||||||
2 | the Board by community colleges and for reviewing the | ||||||
3 | promotional lists on an annual basis. When recommending | ||||||
4 | promotional lists, the Board shall consider the similarity of | ||||||
5 | the positions submitted to those positions recognized for State | ||||||
6 | universities by the State Universities Civil Service System. | ||||||
7 | The Illinois Community College Board shall file a copy of its | ||||||
8 | findings with the System. The System shall consider the | ||||||
9 | findings of the Illinois Community College Board when making | ||||||
10 | determinations under this Section. The System shall not exclude | ||||||
11 | any earnings increases resulting from a promotion when the | ||||||
12 | promotion was not submitted by a community college. Nothing in | ||||||
13 | this subsection (k) shall require any community college to | ||||||
14 | submit any information to the Community College Board.
| ||||||
15 | (l) For purposes of determining the required State | ||||||
16 | contribution to the System, the value of the System's assets | ||||||
17 | shall be equal to the actuarial value of the System's assets, | ||||||
18 | which shall be calculated as follows: | ||||||
19 | As of June 30, 2008, the actuarial value of the System's | ||||||
20 | assets shall be equal to the market value of the assets as of | ||||||
21 | that date. In determining the actuarial value of the System's | ||||||
22 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
23 | gains or losses from investment return incurred in a fiscal | ||||||
24 | year shall be recognized in equal annual amounts over the | ||||||
25 | 5-year period following that fiscal year. | ||||||
26 | (m) For purposes of determining the required State |
| |||||||
| |||||||
1 | contribution to the system for a particular year, the actuarial | ||||||
2 | value of assets shall be assumed to earn a rate of return equal | ||||||
3 | to the system's actuarially assumed rate of return. | ||||||
4 | (Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17; | ||||||
5 | 100-587, eff. 6-4-18.)
| ||||||
6 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
7 | Sec. 16-158. Contributions by State and other employing | ||||||
8 | units.
| ||||||
9 | (a) The State shall make contributions to the System by | ||||||
10 | means of
appropriations from the Common School Fund and other | ||||||
11 | State funds of amounts
which, together with other employer | ||||||
12 | contributions, employee contributions,
investment income, and | ||||||
13 | other income, will be sufficient to meet the cost of
| ||||||
14 | maintaining and administering the System on a 90% funded basis | ||||||
15 | in accordance
with actuarial recommendations.
| ||||||
16 | The Board shall determine the amount of State contributions | ||||||
17 | required for
each fiscal year on the basis of the actuarial | ||||||
18 | tables and other assumptions
adopted by the Board and the | ||||||
19 | recommendations of the actuary, using the formula
in subsection | ||||||
20 | (b-3).
| ||||||
21 | (a-1) Annually, on or before November 15 until November 15, | ||||||
22 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
23 | required State contribution for the coming fiscal
year. The | ||||||
24 | certification under this subsection (a-1) shall include a copy | ||||||
25 | of the actuarial recommendations
upon which it is based and |
| |||||||
| |||||||
1 | shall specifically identify the System's projected State | ||||||
2 | normal cost for that fiscal year.
| ||||||
3 | On or before May 1, 2004, the Board shall recalculate and | ||||||
4 | recertify to
the Governor the amount of the required State | ||||||
5 | contribution to the System for
State fiscal year 2005, taking | ||||||
6 | into account the amounts appropriated to and
received by the | ||||||
7 | System under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act.
| ||||||
9 | On or before July 1, 2005, the Board shall recalculate and | ||||||
10 | recertify
to the Governor the amount of the required State
| ||||||
11 | contribution to the System for State fiscal year 2006, taking | ||||||
12 | into account the changes in required State contributions made | ||||||
13 | by Public Act 94-4.
| ||||||
14 | On or before April 1, 2011, the Board shall recalculate and | ||||||
15 | recertify to the Governor the amount of the required State | ||||||
16 | contribution to the System for State fiscal year 2011, applying | ||||||
17 | the changes made by Public Act 96-889 to the System's assets | ||||||
18 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
19 | was approved on that date. | ||||||
20 | (a-5) On or before November 1 of each year, beginning | ||||||
21 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
22 | the Governor, and the General Assembly a proposed certification | ||||||
23 | of the amount of the required State contribution to the System | ||||||
24 | for the next fiscal year, along with all of the actuarial | ||||||
25 | assumptions, calculations, and data upon which that proposed | ||||||
26 | certification is based. On or before January 1 of each year, |
| |||||||
| |||||||
1 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
2 | preliminary report concerning the proposed certification and | ||||||
3 | identifying, if necessary, recommended changes in actuarial | ||||||
4 | assumptions that the Board must consider before finalizing its | ||||||
5 | certification of the required State contributions. On or before | ||||||
6 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
7 | shall certify to the Governor and the General Assembly the | ||||||
8 | amount of the required State contribution for the next fiscal | ||||||
9 | year. The Board's certification must note any deviations from | ||||||
10 | the State Actuary's recommended changes, the reason or reasons | ||||||
11 | for not following the State Actuary's recommended changes, and | ||||||
12 | the fiscal impact of not following the State Actuary's | ||||||
13 | recommended changes on the required State contribution. | ||||||
14 | (a-10) By November 1, 2017, the Board shall recalculate and | ||||||
15 | recertify to the State Actuary, the Governor, and the General | ||||||
16 | Assembly the amount of the State contribution to the System for | ||||||
17 | State fiscal year 2018, taking into account the changes in | ||||||
18 | required State contributions made by Public Act 100-23. The | ||||||
19 | State Actuary shall review the assumptions and valuations | ||||||
20 | underlying the Board's revised certification and issue a | ||||||
21 | preliminary report concerning the proposed recertification and | ||||||
22 | identifying, if necessary, recommended changes in actuarial | ||||||
23 | assumptions that the Board must consider before finalizing its | ||||||
24 | certification of the required State contributions. The Board's | ||||||
25 | final certification must note any deviations from the State | ||||||
26 | Actuary's recommended changes, the reason or reasons for not |
| |||||||
| |||||||
1 | following the State Actuary's recommended changes, and the | ||||||
2 | fiscal impact of not following the State Actuary's recommended | ||||||
3 | changes on the required State contribution. | ||||||
4 | (a-15) On or after June 15, 2019, but no later than June | ||||||
5 | 30, 2019, the Board shall recalculate and recertify to the | ||||||
6 | Governor and the General Assembly the amount of the State | ||||||
7 | contribution to the System for State fiscal year 2019, taking | ||||||
8 | into account the changes in required State contributions made | ||||||
9 | by this amendatory Act of the 100th General Assembly. The | ||||||
10 | recalculation shall be made using assumptions adopted by the | ||||||
11 | Board for the original fiscal year 2019 certification. The | ||||||
12 | monthly voucher for the 12th month of fiscal year 2019 shall be | ||||||
13 | paid by the Comptroller after the recertification required | ||||||
14 | pursuant to this subsection is submitted to the Governor, | ||||||
15 | Comptroller, and General Assembly. The recertification | ||||||
16 | submitted to the General Assembly shall be filed with the Clerk | ||||||
17 | of the House of Representatives and the Secretary of the Senate | ||||||
18 | in electronic form only, in the manner that the Clerk and the | ||||||
19 | Secretary shall direct. | ||||||
20 | (b) Through State fiscal year 1995, the State contributions | ||||||
21 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
22 | the School Code.
| ||||||
23 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
24 | of each month,
or as soon thereafter as may be practicable, the | ||||||
25 | Board shall submit vouchers
for payment of State contributions | ||||||
26 | to the System, in a total monthly amount of
one-twelfth of the |
| |||||||
| |||||||
1 | required annual State contribution certified under
subsection | ||||||
2 | (a-1).
From March 5, 2004 (the
effective date of Public Act | ||||||
3 | 93-665)
through June 30, 2004, the Board shall not submit | ||||||
4 | vouchers for the
remainder of fiscal year 2004 in excess of the | ||||||
5 | fiscal year 2004
certified contribution amount determined | ||||||
6 | under this Section
after taking into consideration the transfer | ||||||
7 | to the System
under subsection (a) of Section 6z-61 of the | ||||||
8 | State Finance Act.
These vouchers shall be paid by the State | ||||||
9 | Comptroller and
Treasurer by warrants drawn on the funds | ||||||
10 | appropriated to the System for that
fiscal year.
| ||||||
11 | If in any month the amount remaining unexpended from all | ||||||
12 | other appropriations
to the System for the applicable fiscal | ||||||
13 | year (including the appropriations to
the System under Section | ||||||
14 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
15 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
16 | amount
lawfully vouchered under this subsection, the | ||||||
17 | difference shall be paid from the
Common School Fund under the | ||||||
18 | continuing appropriation authority provided in
Section 1.1 of | ||||||
19 | the State Pension Funds Continuing Appropriation Act.
| ||||||
20 | (b-2) Allocations from the Common School Fund apportioned | ||||||
21 | to school
districts not coming under this System shall not be | ||||||
22 | diminished or affected by
the provisions of this Article.
| ||||||
23 | (b-3) For State fiscal years 2012 through 2045, the minimum | ||||||
24 | contribution
to the System to be made by the State for each | ||||||
25 | fiscal year shall be an amount
determined by the System to be | ||||||
26 | sufficient to bring the total assets of the
System up to 90% of |
| |||||||
| |||||||
1 | the total actuarial liabilities of the System by the end of
| ||||||
2 | State fiscal year 2045. In making these determinations, the | ||||||
3 | required State
contribution shall be calculated each year as a | ||||||
4 | level percentage of payroll
over the years remaining to and | ||||||
5 | including fiscal year 2045 and shall be
determined under the | ||||||
6 | projected unit credit actuarial cost method.
| ||||||
7 | For each of State fiscal years 2018, 2019, and 2020, the | ||||||
8 | State shall make an additional contribution to the System equal | ||||||
9 | to 2% of the total payroll of each employee who is deemed to | ||||||
10 | have elected the benefits under Section 1-161 or who has made | ||||||
11 | the election under subsection (c) of Section 1-161. | ||||||
12 | A change in an actuarial or investment assumption that | ||||||
13 | increases or
decreases the required State contribution and | ||||||
14 | first
applies in State fiscal year 2018 or thereafter shall be
| ||||||
15 | implemented in equal annual amounts over a 5-year period
| ||||||
16 | beginning in the State fiscal year in which the actuarial
| ||||||
17 | change first applies to the required State contribution. | ||||||
18 | A change in an actuarial or investment assumption that | ||||||
19 | increases or
decreases the required State contribution and | ||||||
20 | first
applied to the State contribution in fiscal year 2014, | ||||||
21 | 2015, 2016, or 2017 shall be
implemented: | ||||||
22 | (i) as already applied in State fiscal years before | ||||||
23 | 2018; and | ||||||
24 | (ii) in the portion of the 5-year period beginning in | ||||||
25 | the State fiscal year in which the actuarial
change first | ||||||
26 | applied that occurs in State fiscal year 2018 or |
| |||||||
| |||||||
1 | thereafter, by calculating the change in equal annual | ||||||
2 | amounts over that 5-year period and then implementing it at | ||||||
3 | the resulting annual rate in each of the remaining fiscal | ||||||
4 | years in that 5-year period. | ||||||
5 | For State fiscal years 1996 through 2005, the State | ||||||
6 | contribution to the
System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be increased
in equal annual increments | ||||||
8 | so that by State fiscal year 2011, the State is
contributing at | ||||||
9 | the rate required under this Section; except that in the
| ||||||
10 | following specified State fiscal years, the State contribution | ||||||
11 | to the System
shall not be less than the following indicated | ||||||
12 | percentages of the applicable
employee payroll, even if the | ||||||
13 | indicated percentage will produce a State
contribution in | ||||||
14 | excess of the amount otherwise required under this subsection
| ||||||
15 | and subsection (a), and notwithstanding any contrary | ||||||
16 | certification made under
subsection (a-1) before May 27, 1998 | ||||||
17 | (the effective date of Public Act 90-582):
10.02% in FY 1999;
| ||||||
18 | 10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% | ||||||
19 | in FY 2003; and
13.56% in FY 2004.
| ||||||
20 | Notwithstanding any other provision of this Article, the | ||||||
21 | total required State
contribution for State fiscal year 2006 is | ||||||
22 | $534,627,700.
| ||||||
23 | Notwithstanding any other provision of this Article, the | ||||||
24 | total required State
contribution for State fiscal year 2007 is | ||||||
25 | $738,014,500.
| ||||||
26 | For each of State fiscal years 2008 through 2009, the State |
| |||||||
| |||||||
1 | contribution to
the System, as a percentage of the applicable | ||||||
2 | employee payroll, shall be
increased in equal annual increments | ||||||
3 | from the required State contribution for State fiscal year | ||||||
4 | 2007, so that by State fiscal year 2011, the
State is | ||||||
5 | contributing at the rate otherwise required under this Section.
| ||||||
6 | Notwithstanding any other provision of this Article, the | ||||||
7 | total required State contribution for State fiscal year 2010 is | ||||||
8 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
9 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
10 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
11 | expenses determined by the System's share of total bond | ||||||
12 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
13 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
14 | due to the issuance of discounted bonds, if applicable. | ||||||
15 | Notwithstanding any other provision of this Article, the
| ||||||
16 | total required State contribution for State fiscal year 2011 is
| ||||||
17 | the amount recertified by the System on or before April 1, 2011 | ||||||
18 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
19 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
20 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
21 | pro rata share of bond sale
expenses determined by the System's | ||||||
22 | share of total bond
proceeds, (ii) any amounts received from | ||||||
23 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
24 | reduction in bond proceeds
due to the issuance of discounted | ||||||
25 | bonds, if applicable. This amount shall include, in addition to | ||||||
26 | the amount certified by the System, an amount necessary to meet |
| |||||||
| |||||||
1 | employer contributions required by the State as an employer | ||||||
2 | under paragraph (e) of this Section, which may also be used by | ||||||
3 | the System for contributions required by paragraph (a) of | ||||||
4 | Section 16-127. | ||||||
5 | Beginning in State fiscal year 2046, the minimum State | ||||||
6 | contribution for
each fiscal year shall be the amount needed to | ||||||
7 | maintain the total assets of
the System at 90% of the total | ||||||
8 | actuarial liabilities of the System.
| ||||||
9 | Amounts received by the System pursuant to Section 25 of | ||||||
10 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
11 | Finance Act in any fiscal year do not reduce and do not | ||||||
12 | constitute payment of any portion of the minimum State | ||||||
13 | contribution required under this Article in that fiscal year. | ||||||
14 | Such amounts shall not reduce, and shall not be included in the | ||||||
15 | calculation of, the required State contributions under this | ||||||
16 | Article in any future year until the System has reached a | ||||||
17 | funding ratio of at least 90%. A reference in this Article to | ||||||
18 | the "required State contribution" or any substantially similar | ||||||
19 | term does not include or apply to any amounts payable to the | ||||||
20 | System under Section 25 of the Budget Stabilization Act. | ||||||
21 | Notwithstanding any other provision of this Section, the | ||||||
22 | required State
contribution for State fiscal year 2005 and for | ||||||
23 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
24 | under this Section and
certified under subsection (a-1), shall | ||||||
25 | not exceed an amount equal to (i) the
amount of the required | ||||||
26 | State contribution that would have been calculated under
this |
| |||||||
| |||||||
1 | Section for that fiscal year if the System had not received any | ||||||
2 | payments
under subsection (d) of Section 7.2 of the General | ||||||
3 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
4 | total debt service payments for that fiscal
year on the bonds | ||||||
5 | issued in fiscal year 2003 for the purposes of that Section | ||||||
6 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
7 | the same as the System's portion of
the total moneys | ||||||
8 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
9 | Obligation Bond Act. In determining this maximum for State | ||||||
10 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
11 | in item (i) shall be increased, as a percentage of the | ||||||
12 | applicable employee payroll, in equal increments calculated | ||||||
13 | from the sum of the required State contribution for State | ||||||
14 | fiscal year 2007 plus the applicable portion of the State's | ||||||
15 | total debt service payments for fiscal year 2007 on the bonds | ||||||
16 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
17 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
18 | 2011, the
State is contributing at the rate otherwise required | ||||||
19 | under this Section.
| ||||||
20 | (b-4) Beginning in fiscal year 2018, each employer under | ||||||
21 | this Article shall pay to the System a required contribution | ||||||
22 | determined as a percentage of projected payroll and sufficient | ||||||
23 | to produce an annual amount equal to: | ||||||
24 | (i) for each of fiscal years 2018, 2019, and 2020, the | ||||||
25 | defined benefit normal cost of the defined benefit plan, | ||||||
26 | less the employee contribution, for each employee of that |
| |||||||
| |||||||
1 | employer who has elected or who is deemed to have elected | ||||||
2 | the benefits under Section 1-161 or who has made the | ||||||
3 | election under subsection (b) of Section 1-161; for fiscal | ||||||
4 | year 2021 and each fiscal year thereafter, the defined | ||||||
5 | benefit normal cost of the defined benefit plan, less the | ||||||
6 | employee contribution, plus 2%, for each employee of that | ||||||
7 | employer who has elected or who is deemed to have elected | ||||||
8 | the benefits under Section 1-161 or who has made the | ||||||
9 | election under subsection (b) of Section 1-161; plus | ||||||
10 | (ii) the amount required for that fiscal year to | ||||||
11 | amortize any unfunded actuarial accrued liability | ||||||
12 | associated with the present value of liabilities | ||||||
13 | attributable to the employer's account under Section | ||||||
14 | 16-158.3, determined
as a level percentage of payroll over | ||||||
15 | a 30-year rolling amortization period. | ||||||
16 | In determining contributions required under item (i) of | ||||||
17 | this subsection, the System shall determine an aggregate rate | ||||||
18 | for all employers, expressed as a percentage of projected | ||||||
19 | payroll. | ||||||
20 | In determining the contributions required under item (ii) | ||||||
21 | of this subsection, the amount shall be computed by the System | ||||||
22 | on the basis of the actuarial assumptions and tables used in | ||||||
23 | the most recent actuarial valuation of the System that is | ||||||
24 | available at the time of the computation. | ||||||
25 | The contributions required under this subsection (b-4) | ||||||
26 | shall be paid by an employer concurrently with that employer's |
| |||||||
| |||||||
1 | payroll payment period. The State, as the actual employer of an | ||||||
2 | employee, shall make the required contributions under this | ||||||
3 | subsection. | ||||||
4 | (c) Payment of the required State contributions and of all | ||||||
5 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
6 | other benefits granted
under or assumed by this System, and all | ||||||
7 | expenses in connection with the
administration and operation | ||||||
8 | thereof, are obligations of the State.
| ||||||
9 | If members are paid from special trust or federal funds | ||||||
10 | which are
administered by the employing unit, whether school | ||||||
11 | district or other
unit, the employing unit shall pay to the | ||||||
12 | System from such
funds the full accruing retirement costs based | ||||||
13 | upon that
service, which, beginning July 1, 2017, shall be at a | ||||||
14 | rate, expressed as a percentage of salary, equal to the total | ||||||
15 | employer's normal cost, expressed as a percentage of payroll, | ||||||
16 | as determined by the System. Employer contributions, based on
| ||||||
17 | salary paid to members from federal funds, may be forwarded by | ||||||
18 | the distributing
agency of the State of Illinois to the System | ||||||
19 | prior to allocation, in an
amount determined in accordance with | ||||||
20 | guidelines established by such
agency and the System. Any | ||||||
21 | contribution for fiscal year 2015 collected as a result of the | ||||||
22 | change made by Public Act 98-674 shall be considered a State | ||||||
23 | contribution under subsection (b-3) of this Section.
| ||||||
24 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
25 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
26 | employer's normal cost
of benefits based upon the teacher's |
| |||||||
| |||||||
1 | service, in addition to
employee contributions, as determined | ||||||
2 | by the System. Such employer
contributions shall be forwarded | ||||||
3 | monthly in accordance with guidelines
established by the | ||||||
4 | System.
| ||||||
5 | However, with respect to benefits granted under Section | ||||||
6 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
7 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
8 | (rather than 20%) of the member's
highest annual salary rate | ||||||
9 | for each year of creditable service granted, and
the employer | ||||||
10 | shall also pay the required employee contribution on behalf of
| ||||||
11 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
12 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
13 | 16-106 who is serving in that capacity
while on leave of | ||||||
14 | absence from another employer under this Article shall not
be | ||||||
15 | considered an employee of the employer from which the teacher | ||||||
16 | is on leave.
| ||||||
17 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
18 | shall pay to the System an employer contribution computed as | ||||||
19 | follows:
| ||||||
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.
| ||||||
26 | The school district or other employing unit may pay these |
| |||||||
| |||||||
1 | employer
contributions out of any source of funding available | ||||||
2 | for that purpose and
shall forward the contributions to the | ||||||
3 | System on the schedule established
for the payment of member | ||||||
4 | contributions.
| ||||||
5 | These employer contributions are intended to offset a | ||||||
6 | portion of the cost
to the System of the increases in | ||||||
7 | retirement benefits resulting from Public Act 90-582.
| ||||||
8 | Each employer of teachers is entitled to a credit against | ||||||
9 | the contributions
required under this subsection (e) with | ||||||
10 | respect to salaries paid to teachers
for the period January 1, | ||||||
11 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
12 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
13 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
14 | paid to teachers for that
period.
| ||||||
15 | The additional 1% employee contribution required under | ||||||
16 | Section 16-152 by Public Act 90-582
is the responsibility of | ||||||
17 | the teacher and not the
teacher's employer, unless the employer | ||||||
18 | agrees, through collective bargaining
or otherwise, to make the | ||||||
19 | contribution on behalf of the teacher.
| ||||||
20 | If an employer is required by a contract in effect on May | ||||||
21 | 1, 1998 between the
employer and an employee organization to | ||||||
22 | pay, on behalf of all its full-time
employees
covered by this | ||||||
23 | Article, all mandatory employee contributions required under
| ||||||
24 | this Article, then the employer shall be excused from paying | ||||||
25 | the employer
contribution required under this subsection (e) | ||||||
26 | for the balance of the term
of that contract. The employer and |
| |||||||
| |||||||
1 | the employee organization shall jointly
certify to the System | ||||||
2 | the existence of the contractual requirement, in such
form as | ||||||
3 | the System may prescribe. This exclusion shall cease upon the
| ||||||
4 | termination, extension, or renewal of the contract at any time | ||||||
5 | after May 1,
1998.
| ||||||
6 | (f) If For school years beginning on or after June 1, 2005 | ||||||
7 | and before July 1, 2018 and for salary paid to a teacher under | ||||||
8 | a contract or collective bargaining agreement entered into, | ||||||
9 | amended, or renewed before the effective date of this | ||||||
10 | amendatory Act of the 100th General Assembly, if the amount of | ||||||
11 | a teacher's salary for any school year used to determine final | ||||||
12 | average salary exceeds the member's annual full-time salary | ||||||
13 | rate with the same employer for the previous school year by | ||||||
14 | more than 6%, the teacher's employer shall pay to the System, | ||||||
15 | in addition to all other payments required under this Section | ||||||
16 | and in accordance with guidelines established by the System, | ||||||
17 | the present value of the increase in benefits resulting from | ||||||
18 | the portion of the increase in salary that is in excess of 6%. | ||||||
19 | This present value shall be computed by the System on the basis | ||||||
20 | of the actuarial assumptions and tables used in the most recent | ||||||
21 | actuarial valuation of the System that is available at the time | ||||||
22 | of the computation. If a teacher's salary for the 2005-2006 | ||||||
23 | school year is used to determine final average salary under | ||||||
24 | this subsection (f), then the changes made to this subsection | ||||||
25 | (f) by Public Act 94-1057 shall apply in calculating whether | ||||||
26 | the increase in his or her salary is in excess of 6%. For the |
| |||||||
| |||||||
1 | purposes of this Section, change in employment under Section | ||||||
2 | 10-21.12 of the School Code on or after June 1, 2005 shall | ||||||
3 | constitute a change in employer. The System may require the | ||||||
4 | employer to provide any pertinent information or | ||||||
5 | documentation.
The changes made to this subsection (f) by | ||||||
6 | Public Act 94-1111 apply without regard to whether the teacher | ||||||
7 | was in service on or after its effective date.
| ||||||
8 | Whenever it determines that a payment is or may be required | ||||||
9 | under this subsection, the System shall calculate the amount of | ||||||
10 | the payment and bill the employer for that amount. The bill | ||||||
11 | shall specify the calculations used to determine the amount | ||||||
12 | due. If the employer disputes the amount of the bill, it may, | ||||||
13 | within 30 days after receipt of the bill, apply to the System | ||||||
14 | in writing for a recalculation. The application must specify in | ||||||
15 | detail the grounds of the dispute and, if the employer asserts | ||||||
16 | that the calculation is subject to subsection (g) or (h) of | ||||||
17 | this Section or that subsection (f-1) of this Section applies , | ||||||
18 | must include an affidavit setting forth and attesting to all | ||||||
19 | facts within the employer's knowledge that are pertinent to the | ||||||
20 | applicability of that subsection. Upon receiving a timely | ||||||
21 | application for recalculation, the System shall review the | ||||||
22 | application and, if appropriate, recalculate the amount due.
| ||||||
23 | The employer contributions required under this subsection | ||||||
24 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
25 | receipt of the bill. If the employer contributions are not paid | ||||||
26 | within 90 days after receipt of the bill, then interest will be |
| |||||||
| |||||||
1 | charged at a rate equal to the System's annual actuarially | ||||||
2 | assumed rate of return on investment compounded annually from | ||||||
3 | the 91st day after receipt of the bill. Payments must be | ||||||
4 | concluded within 3 years after the employer's receipt of the | ||||||
5 | bill.
| ||||||
6 | (f-1) (Blank). For school years beginning on or after July | ||||||
7 | 1, 2018 and for salary paid to a teacher under a contract or | ||||||
8 | collective bargaining agreement entered into, amended, or | ||||||
9 | renewed on or after the effective date of this amendatory Act | ||||||
10 | of the 100th General Assembly, if the amount of a teacher's | ||||||
11 | salary for any school year used to determine final average | ||||||
12 | salary exceeds the member's annual full-time salary rate with | ||||||
13 | the same employer for the previous school year by more than 3%, | ||||||
14 | then the teacher's employer shall pay to the System, in | ||||||
15 | addition to all other payments required under this Section and | ||||||
16 | in accordance with guidelines established by the System, the | ||||||
17 | present value of the increase in benefits resulting from the | ||||||
18 | portion of the increase in salary that is in excess of 3%. This | ||||||
19 | present value shall be computed by the System on the basis of | ||||||
20 | the actuarial assumptions and tables used in the most recent | ||||||
21 | actuarial valuation of the System that is available at the time | ||||||
22 | of the computation. The System may require the employer to | ||||||
23 | provide any pertinent information or documentation. | ||||||
24 | Whenever it determines that a payment is or may be required | ||||||
25 | under this subsection (f-1), the System shall calculate the | ||||||
26 | amount of the payment and bill the employer for that amount. |
| |||||||
| |||||||
1 | The bill shall specify the calculations used to determine the | ||||||
2 | amount due. If the employer disputes the amount of the bill, it | ||||||
3 | shall, within 30 days after receipt of the bill, apply to the | ||||||
4 | System in writing for a recalculation. The application must | ||||||
5 | specify in detail the grounds of the dispute and, if the | ||||||
6 | employer asserts that subsection (f) of this Section applies, | ||||||
7 | must include an affidavit setting forth and attesting to all | ||||||
8 | facts within the employer's knowledge that are pertinent to the | ||||||
9 | applicability of subsection (f). Upon receiving a timely | ||||||
10 | application for recalculation, the System shall review the | ||||||
11 | application and, if appropriate, recalculate the amount due. | ||||||
12 | The employer contributions required under this subsection | ||||||
13 | (f-1) may be paid in the form of a lump sum within 90 days after | ||||||
14 | receipt of the bill. If the employer contributions are not paid | ||||||
15 | within 90 days after receipt of the bill, then interest shall | ||||||
16 | be charged at a rate equal to the System's annual actuarially | ||||||
17 | assumed rate of return on investment compounded annually from | ||||||
18 | the 91st day after receipt of the bill. Payments must be | ||||||
19 | concluded within 3 years after the employer's receipt of the | ||||||
20 | bill. | ||||||
21 | (g) This subsection (g) applies only to payments made or | ||||||
22 | salary increases given on or after June 1, 2005 but before July | ||||||
23 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
24 | require the System to refund any payments received before
July | ||||||
25 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
26 | When assessing payment for any amount due under subsection |
| |||||||
| |||||||
1 | (f), the System shall exclude salary increases paid to teachers | ||||||
2 | under contracts or collective bargaining agreements entered | ||||||
3 | into, amended, or renewed before June 1, 2005.
| ||||||
4 | When assessing payment for any amount due under subsection | ||||||
5 | (f), the System shall exclude salary increases paid to a | ||||||
6 | teacher at a time when the teacher is 10 or more years from | ||||||
7 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (f), the System shall exclude salary increases resulting from | ||||||
10 | overload work, including summer school, when the school | ||||||
11 | district has certified to the System, and the System has | ||||||
12 | approved the certification, that (i) the overload work is for | ||||||
13 | the sole purpose of classroom instruction in excess of the | ||||||
14 | standard number of classes for a full-time teacher in a school | ||||||
15 | district during a school year and (ii) the salary increases are | ||||||
16 | equal to or less than the rate of pay for classroom instruction | ||||||
17 | computed on the teacher's current salary and work schedule.
| ||||||
18 | When assessing payment for any amount due under subsection | ||||||
19 | (f), the System shall exclude a salary increase resulting from | ||||||
20 | a promotion (i) for which the employee is required to hold a | ||||||
21 | certificate or supervisory endorsement issued by the State | ||||||
22 | Teacher Certification Board that is a different certification | ||||||
23 | or supervisory endorsement than is required for the teacher's | ||||||
24 | previous position and (ii) to a position that has existed and | ||||||
25 | been filled by a member for no less than one complete academic | ||||||
26 | year and the salary increase from the promotion is an increase |
| |||||||
| |||||||
1 | that results in an amount no greater than the lesser of the | ||||||
2 | average salary paid for other similar positions in the district | ||||||
3 | requiring the same certification or the amount stipulated in | ||||||
4 | the collective bargaining agreement for a similar position | ||||||
5 | requiring the same certification.
| ||||||
6 | When assessing payment for any amount due under subsection | ||||||
7 | (f), the System shall exclude any payment to the teacher from | ||||||
8 | the State of Illinois or the State Board of Education over | ||||||
9 | which the employer does not have discretion, notwithstanding | ||||||
10 | that the payment is included in the computation of final | ||||||
11 | average salary.
| ||||||
12 | (h) When assessing payment for any amount due under | ||||||
13 | subsection (f), the System shall exclude any salary increase | ||||||
14 | described in subsection (g) of this Section given on or after | ||||||
15 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
16 | collective bargaining agreement entered into, amended, or | ||||||
17 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
18 | Notwithstanding any other provision of this Section, any | ||||||
19 | payments made or salary increases given after June 30, 2014 | ||||||
20 | shall be used in assessing payment for any amount due under | ||||||
21 | subsection (f) of this Section.
| ||||||
22 | (i) The System shall prepare a report and file copies of | ||||||
23 | the report with the Governor and the General Assembly by | ||||||
24 | January 1, 2007 that contains all of the following information: | ||||||
25 | (1) The number of recalculations required by the | ||||||
26 | changes made to this Section by Public Act 94-1057 for each |
| |||||||
| |||||||
1 | employer. | ||||||
2 | (2) The dollar amount by which each employer's | ||||||
3 | contribution to the System was changed due to | ||||||
4 | recalculations required by Public Act 94-1057. | ||||||
5 | (3) The total amount the System received from each | ||||||
6 | employer as a result of the changes made to this Section by | ||||||
7 | Public Act 94-4. | ||||||
8 | (4) The increase in the required State contribution | ||||||
9 | resulting from the changes made to this Section by Public | ||||||
10 | Act 94-1057.
| ||||||
11 | (i-5) For school years beginning on or after July 1, 2017, | ||||||
12 | if the amount of a participant's salary for any school year, | ||||||
13 | determined on a full-time equivalent basis, exceeds the amount | ||||||
14 | of the salary set for the Governor, the participant's employer | ||||||
15 | shall pay to the System, in addition to all other payments | ||||||
16 | required under this Section and in accordance with guidelines | ||||||
17 | established by the System, an amount determined by the System | ||||||
18 | to be equal to the employer normal cost, as established by the | ||||||
19 | System and expressed as a total percentage of payroll, | ||||||
20 | multiplied by the amount of salary in excess of the amount of | ||||||
21 | the salary set for the Governor. This amount shall be computed | ||||||
22 | by the System on the basis of the actuarial assumptions and | ||||||
23 | tables used in the most recent actuarial valuation of the | ||||||
24 | System that is available at the time of the computation. The | ||||||
25 | System may require the employer to provide any pertinent | ||||||
26 | information or documentation. |
| |||||||
| |||||||
1 | Whenever it determines that a payment is or may be required | ||||||
2 | under this subsection, the System shall calculate the amount of | ||||||
3 | the payment and bill the employer for that amount. The bill | ||||||
4 | shall specify the calculations used to determine the amount | ||||||
5 | due. If the employer disputes the amount of the bill, it may, | ||||||
6 | within 30 days after receipt of the bill, apply to the System | ||||||
7 | in writing for a recalculation. The application must specify in | ||||||
8 | detail the grounds of the dispute. Upon receiving a timely | ||||||
9 | application for recalculation, the System shall review the | ||||||
10 | application and, if appropriate, recalculate the amount due. | ||||||
11 | The employer contributions required under this subsection | ||||||
12 | may be paid in the form of a lump sum within 90 days after | ||||||
13 | receipt of the bill. If the employer contributions are not paid | ||||||
14 | within 90 days after receipt of the bill, then interest will be | ||||||
15 | charged at a rate equal to the System's annual actuarially | ||||||
16 | assumed rate of return on investment compounded annually from | ||||||
17 | the 91st day after receipt of the bill. Payments must be | ||||||
18 | concluded within 3 years after the employer's receipt of the | ||||||
19 | bill. | ||||||
20 | (j) For purposes of determining the required State | ||||||
21 | contribution to the System, the value of the System's assets | ||||||
22 | shall be equal to the actuarial value of the System's assets, | ||||||
23 | which shall be calculated as follows: | ||||||
24 | As of June 30, 2008, the actuarial value of the System's | ||||||
25 | assets shall be equal to the market value of the assets as of | ||||||
26 | that date. In determining the actuarial value of the System's |
| |||||||
| |||||||
1 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
2 | gains or losses from investment return incurred in a fiscal | ||||||
3 | year shall be recognized in equal annual amounts over the | ||||||
4 | 5-year period following that fiscal year. | ||||||
5 | (k) For purposes of determining the required State | ||||||
6 | contribution to the system for a particular year, the actuarial | ||||||
7 | value of assets shall be assumed to earn a rate of return equal | ||||||
8 | to the system's actuarially assumed rate of return. | ||||||
9 | (Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; | ||||||
10 | 100-587, eff. 6-4-18.)
| ||||||
11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
|