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91_SB1448
LRB9111376LDpk
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 17-127 and 17-130.1.
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 Sections 17-127 and 17-130.1 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 of the Fund.
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 (b-5) Beginning In State fiscal year 1999, the State
25 shall include in its annual contribution to the Fund an
26 additional amount equal to 0.544% of the Fund's total teacher
27 payroll; except that this additional contribution need not be
28 made in a fiscal year if the Board has certified in the
29 previous fiscal year that the Fund is at least 90% funded,
30 based on 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 2000, 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 2000, 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 2000.
13 (d) Beginning in the State fiscal year ending in 2001,
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 amount for which vouchers are submitted for
22 the year equals that required annual contribution. These
23 vouchers shall be paid by the State Comptroller and Treasurer
24 by warrants drawn on the funds appropriated to the Fund for
25 that fiscal year. If, in any month, the amount remaining
26 unexpended from all other State appropriations to the Fund
27 for that State fiscal year is less than the amount for which
28 vouchers are lawfully submitted under this Section, the
29 difference shall be paid under the continuing appropriation
30 available for that purpose pursuant to the Chicago Teacher
31 Pension Fund Continuing Appropriation Act.
32 (e) For the purposes of this subsection, "minimum
33 funding requirement" for any fiscal year means the greater of
34 (1) the minimum Board of Education contribution to the Fund
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1 under Section 17-129 for a fiscal year (calculated without
2 regard to any contribution of the State to or for the benefit
3 of the Fund) or (2) the amount appropriated to the Fund by
4 the State for the State's fiscal year ending in 2000.
5 To the extent that the State contribution to the Fund
6 under this Section in a State fiscal year ending after 2000
7 exceeds the minimum funding requirement for that fiscal year,
8 that excess amount shall be treated for all purposes as a
9 payment (and release) of an equal amount of any obligation of
10 the Board of Education to its employees to make contributions
11 to the Fund on behalf of employees under Section 17-130.1 in
12 that fiscal year and shall be treated for all purposes in the
13 same manner and to the same extent as employee contributions
14 made by employees and deducted from salary, to the extent the
15 Board of Education would be so required by the terms of its
16 employment of employees who are members of the Fund to make
17 such a contribution in that State fiscal year. The amount so
18 to be applied in any State fiscal year shall be applied by
19 the Fund, as nearly as may be practicable, on an equal
20 monthly basis, adjusting the amount as necessary upon any
21 change in the appropriations or in the obligations of the
22 Board of Education.
23 Any amounts received by the Fund from the State in a
24 State fiscal year ending after 2000 (together with any
25 amounts carried forward from a previous year under this
26 provision) in excess of the sum of (i) the minimum funding
27 requirement for that year and (ii) the amount treated in that
28 year as a payment (and release) by the Board of Education of
29 Board of Education obligations to make contributions on
30 behalf of employees under Section 17-130.1, plus investment
31 earnings realized by the Fund on that excess, shall be held
32 by the Fund and carried forward to the next State fiscal
33 year, to be used for the purposes for which appropriations to
34 the Fund for that next fiscal year may be used under this
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1 Section but shall not be a credit against or an offset of the
2 minimum funding requirement for the next fiscal year.
3 (Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
4 90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
5 (40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
6 Sec. 17-130.1. Employer contributions on behalf of
7 employees. An Employer and the Board may make and may incur
8 an obligation to make contributions on behalf of its
9 employees in an amount not to exceed the employee
10 contributions required by Section 17-130 for all compensation
11 earned after September 21, 1981. If the Employer or the
12 Board of Education determines not to make such contributions
13 or incur an obligation to make such contributions, the amount
14 that it could have contributed on behalf of its employees
15 shall continue to be deducted from salary. If contributions
16 are made by an Employer or the Board on behalf of its
17 employees they shall be treated as employer contributions in
18 determining tax treatment under the United States Internal
19 Revenue Code. An Employer or the Board may make these
20 contributions on behalf of its employees by a reduction in
21 the cash salary of the employee or by an offset against a
22 future salary increase or by a combination of a reduction in
23 salary and offset against a future salary increase. An
24 Employer or the Board shall pay these employee contributions
25 from the same source of funds which is used in paying salary
26 to the employee or from amounts treated as made under Section
27 17-127, or it may also or alternatively make such
28 contributions from the proceeds of the tax authorized by
29 Section 34-60 of the School Code. Such employee
30 contributions shall be treated for all purposes of this
31 Article 17 in the same manner and to the same extent as
32 employee contributions made by employees and deducted from
33 salary; provided, however, that contributions made by the
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1 Board of Education on behalf of its employees which are to be
2 paid from the proceeds of the tax, as provided in Section
3 34-60 of the School Code, shall not be treated as teachers'
4 pension contributions for the purposes of Section 17-132 of
5 the Illinois Pension Code, and provided further, that
6 contributions which are made by the Board of Education on
7 behalf of its employees shall not be treated as a pension or
8 retirement obligation of the Board of Education for purposes
9 of Section 12 of "An Act in relation to State revenue sharing
10 with local governmental entities", approved July 31, 1969.
11 (Source: P.A. 90-566, eff. 1-2-98.)