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91_SB0137
LRB9101562EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 17-127.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 17-127 as follows:
7 (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
8 Sec. 17-127. Financing; revenues for the Fund.
9 (a) The revenues for the Fund shall consist of: (1)
10 amounts paid into the Fund by contributors thereto and from
11 employer contributions and State appropriations in accordance
12 with this Article; (2) amounts contributed to the Fund by an
13 Employer; (3) amounts contributed to the Fund pursuant to any
14 law now in force or hereafter to be enacted; (4)
15 contributions from any other source; and (5) the earnings on
16 investments.
17 (b) The General Assembly finds that for many years the
18 State has contributed to the Fund an annual amount that is
19 between 20% and 30% of the amount of the annual State
20 contribution to the Article 16 retirement system, and the
21 General Assembly declares that it is its goal and intention
22 to continue this level of contribution to the Fund in the
23 future.
24 Beginning In State fiscal year 1999, the State shall
25 include in its annual contribution to the Fund an additional
26 amount equal to 0.544% of the Fund's total teacher payroll;
27 except that this additional contribution need not be made in
28 a fiscal year if the Board has certified in the previous
29 fiscal year that the Fund is at least 90% funded, based on
30 actuarial determinations. These additional State
31 contributions are intended to offset a portion of the cost to
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1 the Fund of the increases in retirement benefits resulting
2 from Public Act 90-582 this amendatory Act of 1998.
3 (c) For each State fiscal year ending after 1999, the
4 State shall contribute to the Fund, by means of
5 appropriations from the Common School Fund or other State
6 funds, an amount not less than the sum of (i) the amount so
7 appropriated for the State's fiscal year ending in 1999, plus
8 (ii) 20% of the amount, if any, by which the total amount
9 appropriated for contributions by the State to the Teachers'
10 Retirement System of the State of Illinois under Section
11 16-158 in the year of contribution exceeds the amount of such
12 appropriations for the State fiscal year ending in 1999.
13 (d) Beginning in the State fiscal year ending in 2000,
14 on the 15th day of each month, or as soon after that date as
15 is practicable, the Board shall submit vouchers for payment
16 of State contributions to the Fund, in a monthly amount of
17 one-twelfth of the required annual State contribution under
18 subsection (c) of this Section. If that required annual
19 contribution changes during the State fiscal year, the
20 remaining monthly amounts shall be adjusted in equal amounts
21 so that the total vouchered amount for the year equals that
22 required annual contribution. These vouchers shall be paid
23 by the State Comptroller and Treasurer by warrants drawn on
24 the funds appropriated to the Fund for that fiscal year. If,
25 in any month, the amount remaining unexpended from all other
26 appropriations to the Fund for that State fiscal year is less
27 than the amount lawfully vouchered under this Section, the
28 difference shall be paid under the continuing appropriation
29 available for that purpose.
30 (e) For the purposes of this subsection, "minimum
31 funding requirement" means the greater of (1) the minimum
32 Board of Education contribution to the Fund under Section
33 17-129 for a fiscal year (calculated without regard to any
34 contribution of the State to or for the benefit of the Fund)
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1 or (2) the amount appropriated to the Fund by the State for
2 the State's fiscal year ending in 1999.
3 To the extent that the State contribution to the Fund
4 under this Section in a State fiscal year ending after 1999
5 exceeds the minimum funding requirement, that excess amount
6 shall be treated for all purposes as a payment (and release)
7 of an equal amount of any obligation of the Board of
8 Education to make contributions on behalf of employees under
9 Section 17-130.1 and shall be treated for all purposes in the
10 same manner and to the same extent as employee contributions
11 made by employees and deducted from salary, to the extent the
12 Board of Education would be so required to make such a
13 contribution in that State fiscal year. The amount so to be
14 applied in any State fiscal year shall be applied by the
15 Fund, as nearly as may be practicable, on an equal monthly
16 basis, adjusting the amount as necessary upon any change in
17 the appropriations or in the obligations of the Board of
18 Education.
19 If the amounts received by the Fund from the State in a
20 State fiscal year ending after 1999 (together with any
21 amounts carried forward from a previous year under this
22 provision) exceed the sum of (i) the minimum funding
23 requirement for that year and (ii) the amount applied in that
24 year to a payment of Board of Education obligations under
25 Section 17-130.1, that excess shall be held by the Fund and
26 carried forward to the next State fiscal year, to be used for
27 the purposes for which appropriations to the Fund for that
28 next fiscal year may be used under this Section.
29 (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
30 90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.