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1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Section 16-158 as follows:
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
17 contributions required for each fiscal year on the basis of
18 the actuarial tables and other assumptions adopted by the
19 Board and the recommendations of the actuary, using the
20 formula in subsection (b-3).
21 (a-1) Annually, on or before November 15 until November
22 15, 2011, the Board shall certify to the Governor the amount of
23 the required State contribution for the coming fiscal year.
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1 The certification under this subsection (a-1) shall include a
2 copy of the actuarial recommendations upon which it is based
3 and shall specifically identify the System's projected State
4 normal cost for that fiscal year.
5 On or before May 1, 2004, the Board shall recalculate and
6 recertify to the Governor the amount of the required State
7 contribution to the System for State fiscal year 2005, taking
8 into account the amounts appropriated to and received by the
9 System under subsection (d) of Section 7.2 of the General
10 Obligation Bond Act.
11 On or before July 1, 2005, the Board shall recalculate and
12 recertify to the Governor the amount of the required State
13 contribution to the System for State fiscal year 2006, taking
14 into account the changes in required State contributions made
15 by Public Act 94-4.
16 On or before April 1, 2011, the Board shall recalculate
17 and recertify to the Governor the amount of the required State
18 contribution to the System for State fiscal year 2011,
19 applying the changes made by Public Act 96-889 to the System's
20 assets and liabilities as of June 30, 2009 as though Public Act
21 96-889 was approved on that date.
22 (a-5) On or before November 1 of each year, beginning
23 November 1, 2012, the Board shall submit to the State Actuary,
24 the Governor, and the General Assembly a proposed
25 certification of the amount of the required State contribution
26 to the System for the next fiscal year, along with all of the
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1 actuarial assumptions, calculations, and data upon which that
2 proposed certification is based. On or before January 1 of
3 each year, beginning January 1, 2013, the State Actuary shall
4 issue a preliminary report concerning the proposed
5 certification and identifying, if necessary, recommended
6 changes in actuarial assumptions that the Board must consider
7 before finalizing its certification of the required State
8 contributions. On or before January 15, 2013 and each January
9 15 thereafter, the Board shall certify to the Governor and the
10 General Assembly the amount of the required State contribution
11 for the next fiscal year. The Board's certification must note
12 any deviations from the State Actuary's recommended changes,
13 the reason or reasons for not following the State Actuary's
14 recommended changes, and the fiscal impact of not following
15 the State Actuary's recommended changes on the required State
16 contribution.
17 (a-10) By November 1, 2017, the Board shall recalculate
18 and recertify to the State Actuary, the Governor, and the
19 General Assembly the amount of the State contribution to the
20 System for State fiscal year 2018, taking into account the
21 changes in required State contributions made by Public Act
22 100-23. The State Actuary shall review the assumptions and
23 valuations underlying the Board's revised certification and
24 issue a preliminary report concerning the proposed
25 recertification and identifying, if necessary, recommended
26 changes in actuarial assumptions that the Board must consider
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1 before finalizing its certification of the required State
2 contributions. The Board's final certification must note any
3 deviations from the State Actuary's recommended changes, the
4 reason or reasons for not following the State Actuary's
5 recommended changes, and the fiscal impact of not following
6 the State Actuary's recommended changes on the required State
7 contribution.
8 (a-15) On or after June 15, 2019, but no later than June
9 30, 2019, the Board shall recalculate and recertify to the
10 Governor and the General Assembly the amount of the State
11 contribution to the System for State fiscal year 2019, taking
12 into account the changes in required State contributions made
13 by Public Act 100-587. The recalculation shall be made using
14 assumptions adopted by the Board for the original fiscal year
15 2019 certification. The monthly voucher for the 12th month of
16 fiscal year 2019 shall be paid by the Comptroller after the
17 recertification required pursuant to this subsection is
18 submitted to the Governor, Comptroller, and General Assembly.
19 The recertification submitted to the General Assembly shall be
20 filed with the Clerk of the House of Representatives and the
21 Secretary of the Senate in electronic form only, in the manner
22 that the Clerk and the Secretary shall direct.
23 (b) Through State fiscal year 1995, the State
24 contributions shall be paid to the System in accordance with
25 Section 18-7 of the School Code.
26 (b-1) Beginning in State fiscal year 1996, on the 15th day
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1 of each month, or as soon thereafter as may be practicable, the
2 Board shall submit vouchers for payment of State contributions
3 to the System, in a total monthly amount of one-twelfth of the
4 required annual State contribution certified under subsection
5 (a-1). From March 5, 2004 (the effective date of Public Act
6 93-665) through June 30, 2004, the Board shall not submit
7 vouchers for the remainder of fiscal year 2004 in excess of the
8 fiscal year 2004 certified contribution amount determined
9 under this Section after taking into consideration the
10 transfer to the System under subsection (a) of Section 6z-61
11 of the State Finance Act. These vouchers shall be paid by the
12 State Comptroller and Treasurer by warrants drawn on the funds
13 appropriated to the System for that fiscal year.
14 If in any month the amount remaining unexpended from all
15 other appropriations to the System for the applicable fiscal
16 year (including the appropriations to the System under Section
17 8.12 of the State Finance Act and Section 1 of the State
18 Pension Funds Continuing Appropriation Act) is less than the
19 amount lawfully vouchered under this subsection, the
20 difference shall be paid from the Common School Fund under the
21 continuing appropriation authority provided in Section 1.1 of
22 the State Pension Funds Continuing Appropriation Act.
23 (b-2) Allocations from the Common School Fund apportioned
24 to school districts not coming under this System shall not be
25 diminished or affected by the provisions of this Article.
26 (b-3) For State fiscal years 2012 through 2045, the
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1 minimum contribution to the System to be made by the State for
2 each fiscal year shall be an amount determined by the System to
3 be sufficient to bring the total assets of the System up to 90%
4 of the total actuarial liabilities of the System by the end of
5 State fiscal year 2045. In making these determinations, the
6 required State contribution shall be calculated each year as a
7 level percentage of payroll over the years remaining to and
8 including fiscal year 2045 and shall be determined under the
9 projected unit credit actuarial cost method.
10 For each of State fiscal years 2018, 2019, and 2020, the
11 State shall make an additional contribution to the System
12 equal to 2% of the total payroll of each employee who is deemed
13 to have elected the benefits under Section 1-161 or who has
14 made the election under subsection (c) of Section 1-161.
15 A change in an actuarial or investment assumption that
16 increases or decreases the required State contribution and
17 first applies in State fiscal year 2018 or thereafter shall be
18 implemented in equal annual amounts over a 5-year period
19 beginning in the State fiscal year in which the actuarial
20 change first applies to the required State contribution.
21 A change in an actuarial or investment assumption that
22 increases or decreases the required State contribution and
23 first applied to the State contribution in fiscal year 2014,
24 2015, 2016, or 2017 shall be implemented:
25 (i) as already applied in State fiscal years before
26 2018; and
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1 (ii) in the portion of the 5-year period beginning in
2 the State fiscal year in which the actuarial change first
3 applied that occurs in State fiscal year 2018 or
4 thereafter, by calculating the change in equal annual
5 amounts over that 5-year period and then implementing it
6 at the resulting annual rate in each of the remaining
7 fiscal years in that 5-year period.
8 For State fiscal years 1996 through 2005, the State
9 contribution to the System, as a percentage of the applicable
10 employee payroll, shall be increased in equal annual
11 increments so that by State fiscal year 2011, the State is
12 contributing at the rate required under this Section; except
13 that in the following specified State fiscal years, the State
14 contribution to the System shall not be less than the
15 following indicated percentages of the applicable employee
16 payroll, even if the indicated percentage will produce a State
17 contribution in excess of the amount otherwise required under
18 this subsection and subsection (a), and notwithstanding any
19 contrary certification made under subsection (a-1) before May
20 27, 1998 (the effective date of Public Act 90-582): 10.02% in
21 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
22 2002; 12.86% in FY 2003; and 13.56% in FY 2004.
23 Notwithstanding any other provision of this Article, the
24 total required State contribution for State fiscal year 2006
25 is $534,627,700.
26 Notwithstanding any other provision of this Article, the
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1 total required State contribution for State fiscal year 2007
2 is $738,014,500.
3 For each of State fiscal years 2008 through 2009, the
4 State contribution to the System, as a percentage of the
5 applicable employee payroll, shall be increased in equal
6 annual increments from the required State contribution for
7 State fiscal year 2007, so that by State fiscal year 2011, the
8 State is contributing at the rate otherwise required under
9 this Section.
10 Notwithstanding any other provision of this Article, the
11 total required State contribution for State fiscal year 2010
12 is $2,089,268,000 and shall be made from the proceeds of bonds
13 sold in fiscal year 2010 pursuant to Section 7.2 of the General
14 Obligation Bond Act, less (i) the pro rata share of bond sale
15 expenses determined by the System's share of total bond
16 proceeds, (ii) any amounts received from the Common School
17 Fund in fiscal year 2010, and (iii) any reduction in bond
18 proceeds due to the issuance of discounted bonds, if
19 applicable.
20 Notwithstanding any other provision of this Article, the
21 total required State contribution for State fiscal year 2011
22 is the amount recertified by the System on or before April 1,
23 2011 pursuant to subsection (a-1) of this Section and shall be
24 made from the proceeds of bonds sold in fiscal year 2011
25 pursuant to Section 7.2 of the General Obligation Bond Act,
26 less (i) the pro rata share of bond sale expenses determined by
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1 the System's share of total bond proceeds, (ii) any amounts
2 received from the Common School Fund in fiscal year 2011, and
3 (iii) any reduction in bond proceeds due to the issuance of
4 discounted bonds, if applicable. This amount shall include, in
5 addition to the amount certified by the System, an amount
6 necessary to meet employer contributions required by the State
7 as an employer under paragraph (e) of this Section, which may
8 also be used by the System for contributions required by
9 paragraph (a) of Section 16-127.
10 Beginning in State fiscal year 2046, the minimum State
11 contribution for each fiscal year shall be the amount needed
12 to maintain the total assets of the System at 90% of the total
13 actuarial liabilities of the System.
14 Amounts received by the System pursuant to Section 25 of
15 the Budget Stabilization Act or Section 8.12 of the State
16 Finance Act in any fiscal year do not reduce and do not
17 constitute payment of any portion of the minimum State
18 contribution required under this Article in that fiscal year.
19 Such amounts shall not reduce, and shall not be included in the
20 calculation of, the required State contributions under this
21 Article in any future year until the System has reached a
22 funding ratio of at least 90%. A reference in this Article to
23 the "required State contribution" or any substantially similar
24 term does not include or apply to any amounts payable to the
25 System under Section 25 of the Budget Stabilization Act.
26 Notwithstanding any other provision of this Section, the
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1 required State contribution for State fiscal year 2005 and for
2 fiscal year 2008 and each fiscal year thereafter, as
3 calculated under this Section and certified under subsection
4 (a-1), shall not exceed an amount equal to (i) the amount of
5 the required State contribution that would have been
6 calculated under this Section for that fiscal year if the
7 System had not received any payments under subsection (d) of
8 Section 7.2 of the General Obligation Bond Act, minus (ii) the
9 portion of the State's total debt service payments for that
10 fiscal year on the bonds issued in fiscal year 2003 for the
11 purposes of that Section 7.2, as determined and certified by
12 the Comptroller, that is the same as the System's portion of
13 the total moneys distributed under subsection (d) of Section
14 7.2 of the General Obligation Bond Act. In determining this
15 maximum for State fiscal years 2008 through 2010, however, the
16 amount referred to in item (i) shall be increased, as a
17 percentage of the applicable employee payroll, in equal
18 increments calculated from the sum of the required State
19 contribution for State fiscal year 2007 plus the applicable
20 portion of the State's total debt service payments for fiscal
21 year 2007 on the bonds issued in fiscal year 2003 for the
22 purposes of Section 7.2 of the General Obligation Bond Act, so
23 that, by State fiscal year 2011, the State is contributing at
24 the rate otherwise required under this Section.
25 (b-4) Beginning in fiscal year 2018, each employer under
26 this Article shall pay to the System a required contribution
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1 determined as a percentage of projected payroll and sufficient
2 to produce an annual amount equal to:
3 (i) for each of fiscal years 2018, 2019, and 2020, the
4 defined benefit normal cost of the defined benefit plan,
5 less the employee contribution, for each employee of that
6 employer who has elected or who is deemed to have elected
7 the benefits under Section 1-161 or who has made the
8 election under subsection (b) of Section 1-161; for fiscal
9 year 2021 and each fiscal year thereafter, the defined
10 benefit normal cost of the defined benefit plan, less the
11 employee contribution, plus 2%, for each employee of that
12 employer who has elected or who is deemed to have elected
13 the benefits under Section 1-161 or who has made the
14 election under subsection (b) of Section 1-161; plus
15 (ii) the amount required for that fiscal year to
16 amortize any unfunded actuarial accrued liability
17 associated with the present value of liabilities
18 attributable to the employer's account under Section
19 16-158.3, determined as a level percentage of payroll over
20 a 30-year rolling amortization period.
21 In determining contributions required under item (i) of
22 this subsection, the System shall determine an aggregate rate
23 for all employers, expressed as a percentage of projected
24 payroll.
25 In determining the contributions required under item (ii)
26 of this subsection, the amount shall be computed by the System
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1 on the basis of the actuarial assumptions and tables used in
2 the most recent actuarial valuation of the System that is
3 available at the time of the computation.
4 The contributions required under this subsection (b-4)
5 shall be paid by an employer concurrently with that employer's
6 payroll payment period. The State, as the actual employer of
7 an employee, shall make the required contributions under this
8 subsection.
9 (c) Payment of the required State contributions and of all
10 pensions, retirement annuities, death benefits, refunds, and
11 other benefits granted under or assumed by this System, and
12 all expenses in connection with the administration and
13 operation thereof, are obligations of the State.
14 If members are paid from special trust or federal funds
15 which are administered by the employing unit, whether school
16 district or other unit, the employing unit shall pay to the
17 System from such funds the full accruing retirement costs
18 based upon that service, which, beginning July 1, 2017, shall
19 be at a rate, expressed as a percentage of salary, equal to the
20 total employer's normal cost, expressed as a percentage of
21 payroll, as determined by the System. Employer contributions,
22 based on salary paid to members from federal funds, may be
23 forwarded by the distributing agency of the State of Illinois
24 to the System prior to allocation, in an amount determined in
25 accordance with guidelines established by such agency and the
26 System. Any contribution for fiscal year 2015 collected as a
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1 result of the change made by Public Act 98-674 shall be
2 considered a State contribution under subsection (b-3) of this
3 Section.
4 (d) Effective July 1, 1986, any employer of a teacher as
5 defined in paragraph (8) of Section 16-106 shall pay the
6 employer's normal cost of benefits based upon the teacher's
7 service, in addition to employee contributions, as determined
8 by the System. Such employer contributions shall be forwarded
9 monthly in accordance with guidelines established by the
10 System.
11 However, with respect to benefits granted under Section
12 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
13 of Section 16-106, the employer's contribution shall be 12%
14 (rather than 20%) of the member's highest annual salary rate
15 for each year of creditable service granted, and the employer
16 shall also pay the required employee contribution on behalf of
17 the teacher. For the purposes of Sections 16-133.4 and
18 16-133.5, a teacher as defined in paragraph (8) of Section
19 16-106 who is serving in that capacity while on leave of
20 absence from another employer under this Article shall not be
21 considered an employee of the employer from which the teacher
22 is on leave.
23 (e) Beginning July 1, 1998, every employer of a teacher
24 shall pay to the System an employer contribution computed as
25 follows:
26 (1) Beginning July 1, 1998 through June 30, 1999, the
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1 employer contribution shall be equal to 0.3% of each
2 teacher's salary.
3 (2) Beginning July 1, 1999 and thereafter, the
4 employer contribution shall be equal to 0.58% of each
5 teacher's salary.
6 The school district or other employing unit may pay these
7 employer contributions out of any source of funding available
8 for that purpose and shall forward the contributions to the
9 System on the schedule established for the payment of member
10 contributions.
11 These employer contributions are intended to offset a
12 portion of the cost to the System of the increases in
13 retirement benefits resulting from Public Act 90-582.
14 Each employer of teachers is entitled to a credit against
15 the contributions required under this subsection (e) with
16 respect to salaries paid to teachers for the period January 1,
17 2002 through June 30, 2003, equal to the amount paid by that
18 employer under subsection (a-5) of Section 6.6 of the State
19 Employees Group Insurance Act of 1971 with respect to salaries
20 paid to teachers for that period.
21 The additional 1% employee contribution required under
22 Section 16-152 by Public Act 90-582 is the responsibility of
23 the teacher and not the teacher's employer, unless the
24 employer agrees, through collective bargaining or otherwise,
25 to make the contribution on behalf of the teacher.
26 If an employer is required by a contract in effect on May
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1 1, 1998 between the employer and an employee organization to
2 pay, on behalf of all its full-time employees covered by this
3 Article, all mandatory employee contributions required under
4 this Article, then the employer shall be excused from paying
5 the employer contribution required under this subsection (e)
6 for the balance of the term of that contract. The employer and
7 the employee organization shall jointly certify to the System
8 the existence of the contractual requirement, in such form as
9 the System may prescribe. This exclusion shall cease upon the
10 termination, extension, or renewal of the contract at any time
11 after May 1, 1998.
12 (f) If the amount of a teacher's salary for any school year
13 used to determine final average salary exceeds the member's
14 annual full-time salary rate with the same employer for the
15 previous school year by more than 6%, the teacher's employer
16 shall pay to the System, in addition to all other payments
17 required under this Section and in accordance with guidelines
18 established by the System, the present value of the increase
19 in benefits resulting from the portion of the increase in
20 salary that is in excess of 6%. This present value shall be
21 computed by the System on the basis of the actuarial
22 assumptions and tables used in the most recent actuarial
23 valuation of the System that is available at the time of the
24 computation. If a teacher's salary for the 2005-2006 school
25 year is used to determine final average salary under this
26 subsection (f), then the changes made to this subsection (f)
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1 by Public Act 94-1057 shall apply in calculating whether the
2 increase in his or her salary is in excess of 6%. For the
3 purposes of this Section, change in employment under Section
4 10-21.12 of the School Code on or after June 1, 2005 shall
5 constitute a change in employer. The System may require the
6 employer to provide any pertinent information or
7 documentation. The changes made to this subsection (f) by
8 Public Act 94-1111 apply without regard to whether the teacher
9 was in service on or after its effective date.
10 Whenever it determines that a payment is or may be
11 required under this subsection, the System shall calculate the
12 amount of the payment and bill the employer for that amount.
13 The bill shall specify the calculations used to determine the
14 amount due. If the employer disputes the amount of the bill, it
15 may, within 30 days after receipt of the bill, apply to the
16 System in writing for a recalculation. The application must
17 specify in detail the grounds of the dispute and, if the
18 employer asserts that the calculation is subject to subsection
19 (g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
20 must include an affidavit setting forth and attesting to all
21 facts within the employer's knowledge that are pertinent to
22 the applicability of that subsection. Upon receiving a timely
23 application for recalculation, the System shall review the
24 application and, if appropriate, recalculate the amount due.
25 The employer contributions required under this subsection
26 (f) may be paid in the form of a lump sum within 90 days after
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1 receipt of the bill. If the employer contributions are not
2 paid within 90 days after receipt of the bill, then interest
3 will be charged at a rate equal to the System's annual
4 actuarially assumed rate of return on investment compounded
5 annually from the 91st day after receipt of the bill. Payments
6 must be concluded within 3 years after the employer's receipt
7 of the bill.
8 (f-1) (Blank).
9 (g) This subsection (g) applies only to payments made or
10 salary increases given on or after June 1, 2005 but before July
11 1, 2011. The changes made by Public Act 94-1057 shall not
12 require the System to refund any payments received before July
13 31, 2006 (the effective date of Public Act 94-1057).
14 When assessing payment for any amount due under subsection
15 (f), the System shall exclude salary increases paid to
16 teachers under contracts or collective bargaining agreements
17 entered into, amended, or renewed before June 1, 2005.
18 When assessing payment for any amount due under subsection
19 (f), the System shall exclude salary increases paid to a
20 teacher at a time when the teacher is 10 or more years from
21 retirement eligibility under Section 16-132 or 16-133.2.
22 When assessing payment for any amount due under subsection
23 (f), the System shall exclude salary increases resulting from
24 overload work, including summer school, when the school
25 district has certified to the System, and the System has
26 approved the certification, that (i) the overload work is for
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1 the sole purpose of classroom instruction in excess of the
2 standard number of classes for a full-time teacher in a school
3 district during a school year and (ii) the salary increases
4 are equal to or less than the rate of pay for classroom
5 instruction computed on the teacher's current salary and work
6 schedule.
7 When assessing payment for any amount due under subsection
8 (f), the System shall exclude a salary increase resulting from
9 a promotion (i) for which the employee is required to hold a
10 certificate or supervisory endorsement issued by the State
11 Teacher Certification Board that is a different certification
12 or supervisory endorsement than is required for the teacher's
13 previous position and (ii) to a position that has existed and
14 been filled by a member for no less than one complete academic
15 year and the salary increase from the promotion is an increase
16 that results in an amount no greater than the lesser of the
17 average salary paid for other similar positions in the
18 district requiring the same certification or the amount
19 stipulated in the collective bargaining agreement for a
20 similar position requiring the same certification.
21 When assessing payment for any amount due under subsection
22 (f), the System shall exclude any payment to the teacher from
23 the State of Illinois or the State Board of Education over
24 which the employer does not have discretion, notwithstanding
25 that the payment is included in the computation of final
26 average salary.
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1 (g-5) When assessing payment for any amount due under
2 subsection (f), the System shall exclude salary increases
3 resulting from overload or stipend work performed in a school
4 year subsequent to a school year in which the employer was
5 unable to offer or allow to be conducted overload or stipend
6 work due to an emergency declaration limiting such activities.
7 (g-10) When assessing payment for any amount due under
8 subsection (f), the System shall exclude salary increases
9 resulting from increased instructional time that exceeded the
10 instructional time required during the 2019-2020 school year.
11 (g-15) When assessing payment for any amount due under
12 subsection (f), the System shall exclude salary increases
13 resulting from teaching summer school on or after May 1, 2021
14 and before September 15, 2022.
15 (g-20) When assessing payment for any amount due under
16 subsection (f), the System shall exclude salary increases
17 necessary to bring a school board in compliance with Public
18 Act 101-443 or this amendatory Act of the 103rd General
19 Assembly.
20 (h) When assessing payment for any amount due under
21 subsection (f), the System shall exclude any salary increase
22 described in subsection (g) of this Section given on or after
23 July 1, 2011 but before July 1, 2014 under a contract or
24 collective bargaining agreement entered into, amended, or
25 renewed on or after June 1, 2005 but before July 1, 2011.
26 Notwithstanding any other provision of this Section, any
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1 payments made or salary increases given after June 30, 2014
2 shall be used in assessing payment for any amount due under
3 subsection (f) of this Section.
4 (i) The System shall prepare a report and file copies of
5 the report with the Governor and the General Assembly by
6 January 1, 2007 that contains all of the following
7 information:
8 (1) The number of recalculations required by the
9 changes made to this Section by Public Act 94-1057 for
10 each employer.
11 (2) The dollar amount by which each employer's
12 contribution to the System was changed due to
13 recalculations required by Public Act 94-1057.
14 (3) The total amount the System received from each
15 employer as a result of the changes made to this Section by
16 Public Act 94-4.
17 (4) The increase in the required State contribution
18 resulting from the changes made to this Section by Public
19 Act 94-1057.
20 (i-5) For school years beginning on or after July 1, 2017,
21 if the amount of a participant's salary for any school year
22 exceeds the amount of the salary set for the Governor, the
23 participant's employer shall pay to the System, in addition to
24 all other payments required under this Section and in
25 accordance with guidelines established by the System, an
26 amount determined by the System to be equal to the employer
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1 normal cost, as established by the System and expressed as a
2 total percentage of payroll, multiplied by the amount of
3 salary in excess of the amount of the salary set for the
4 Governor. This amount shall be computed by the System on the
5 basis of the actuarial assumptions and tables used in the most
6 recent actuarial valuation of the System that is available at
7 the time of the computation. The System may require the
8 employer to provide any pertinent information or
9 documentation.
10 Whenever it determines that a payment is or may be
11 required under this subsection, the System shall calculate the
12 amount of the payment and bill the employer for that amount.
13 The bill shall specify the calculations used to determine the
14 amount due. If the employer disputes the amount of the bill, it
15 may, within 30 days after receipt of the bill, apply to the
16 System in writing for a recalculation. The application must
17 specify in detail the grounds of the dispute. Upon receiving a
18 timely application for recalculation, the System shall review
19 the application and, if appropriate, recalculate the amount
20 due.
21 The employer contributions required under this subsection
22 may be paid in the form of a lump sum within 90 days after
23 receipt of the bill. If the employer contributions are not
24 paid within 90 days after receipt of the bill, then interest
25 will be charged at a rate equal to the System's annual
26 actuarially assumed rate of return on investment compounded
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1 annually from the 91st day after receipt of the bill. Payments
2 must be concluded within 3 years after the employer's receipt
3 of the bill.
4 (j) For purposes of determining the required State
5 contribution to the System, the value of the System's assets
6 shall be equal to the actuarial value of the System's assets,
7 which shall be calculated as follows:
8 As of June 30, 2008, the actuarial value of the System's
9 assets shall be equal to the market value of the assets as of
10 that date. In determining the actuarial value of the System's
11 assets for fiscal years after June 30, 2008, any actuarial
12 gains or losses from investment return incurred in a fiscal
13 year shall be recognized in equal annual amounts over the
14 5-year period following that fiscal year.
15 (k) For purposes of determining the required State
16 contribution to the system for a particular year, the
17 actuarial value of assets shall be assumed to earn a rate of
18 return equal to the system's actuarially assumed rate of
19 return.
20 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
21 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff.
22 8-20-21; 102-813, eff. 5-13-22.)
23 Section 10. The School Code is amended by changing Section
24 24-8 as follows:
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1 (105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
2 Sec. 24-8. Minimum salary. In fixing the salaries of
3 teachers, school boards shall pay those who serve on a
4 full-time basis not less than a rate for the school year that
5 is based upon training completed in a recognized institution
6 of higher learning, as follows: for the school year beginning
7 July 1, 1980 and until the 2020-2021 school year, less than a
8 bachelor's degree, $9,000; 120 semester hours or more and a
9 bachelor's degree, $10,000; 150 semester hours or more and a
10 master's degree, $11,000. In fixing the salaries of teachers,
11 a school board shall pay those who serve on a full-time basis a
12 rate not less than (i) $32,076 for the 2020-2021 school year,
13 (ii) $34,576 for the 2021-2022 school year, (iii) $37,076 for
14 the 2022-2023 school year, and (iv) $40,000 for the 2023-2024
15 school year. The minimum salary rate for each school year
16 thereafter, subject to review by the General Assembly, shall
17 equal the minimum salary rate for the previous school year
18 increased by a percentage equal to the annualized percentage
19 increase, if any, in the Consumer Price Index for All Urban
20 Consumers for all items published by the United States
21 Department of Labor for the 12-month period ending on June 30
22 of the school year that ended 12 months prior to the school
23 year in which the adjusted salary is to be in effect the
24 previous school year.
25 In accordance with this Section, the Commission on
26 Government Forecasting and Accountability shall certify and
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1 publish the minimum salary rate to be used for the 2024-2025
2 school year no later than September 30, 2023. By no later than
3 July 20, 2024 and annually on or before each July 20
4 thereafter, the Commission on Government Forecasting and
5 Accountability shall certify and publish the minimum salary
6 rate to be used for each school year after the 2024-2025 school
7 year in accordance with this Section.
8 On or before January 31, 2020, the Professional Review
9 Panel created under Section 18-8.15 must submit a report to
10 the General Assembly on how State funds and funds distributed
11 under the evidence-based funding formula under Section 18-8.15
12 may aid the financial effects of the changes made by this
13 amendatory Act of the 101st General Assembly.
14 Based upon previous public school experience in this State
15 or any other state, territory, dependency or possession of the
16 United States, or in schools operated by or under the auspices
17 of the United States, teachers who serve on a full-time basis
18 shall have their salaries increased to at least the following
19 amounts above the starting salary for a teacher in such
20 district in the same classification: with less than a
21 bachelor's degree, $750 after 5 years; with 120 semester hours
22 or more and a bachelor's degree, $1,000 after 5 years and
23 $1,600 after 8 years; with 150 semester hours or more and a
24 master's degree, $1,250 after 5 years, $2,000 after 8 years
25 and $2,750 after 13 years.
26 For the purpose of this Section a teacher's salary shall
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1 include any amount paid by the school district on behalf of the
2 teacher, as teacher contributions, to the Teachers' Retirement
3 System of the State of Illinois.
4 If a school board establishes a schedule for teachers'
5 salaries based on education and experience, not inconsistent
6 with this Section, all certificated nurses employed by that
7 board shall be paid in accordance with the provisions of such
8 schedule.
9 For purposes of this Section, a teacher who submits a
10 certificate of completion to the school office prior to the
11 first day of the school term shall be considered to have the
12 degree stated in such certificate.
13 (Source: P.A. 101-443, eff. 6-1-20.)
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