Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2739 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2739 Introduced 1/12/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-13440 ILCS 5/14-13140 ILCS 5/15-165 from Ch. 108 1/2, par. 15-16540 ILCS 5/16-158 from Ch. 108 1/2, par. 16-15840 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140 Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning in State fiscal year 2025, if the Comptroller requests the Board of Trustees of one of those Systems to submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then that Board of Trustees shall submit those additional vouchers as directed by the Comptroller, notwithstanding existing limits on the amounts to be vouchered each month. With regard to the General Assembly, State Employees, Downstate Teachers, and Judges Articles, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the rate of payroll certified by the System for that State fiscal year. For the State Universities Article, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the annual certified contribution to the System for that State fiscal year. Makes conforming changes. Effective July 1, 2024. LRB103 34580 RPS 64418 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2739 Introduced 1/12/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: 40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-13440 ILCS 5/14-13140 ILCS 5/15-165 from Ch. 108 1/2, par. 15-16540 ILCS 5/16-158 from Ch. 108 1/2, par. 16-15840 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140 40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134 40 ILCS 5/14-131 40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140 Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning in State fiscal year 2025, if the Comptroller requests the Board of Trustees of one of those Systems to submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then that Board of Trustees shall submit those additional vouchers as directed by the Comptroller, notwithstanding existing limits on the amounts to be vouchered each month. With regard to the General Assembly, State Employees, Downstate Teachers, and Judges Articles, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the rate of payroll certified by the System for that State fiscal year. For the State Universities Article, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the annual certified contribution to the System for that State fiscal year. Makes conforming changes. Effective July 1, 2024. LRB103 34580 RPS 64418 b LRB103 34580 RPS 64418 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2739 Introduced 1/12/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-13440 ILCS 5/14-13140 ILCS 5/15-165 from Ch. 108 1/2, par. 15-16540 ILCS 5/16-158 from Ch. 108 1/2, par. 16-15840 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140 40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134 40 ILCS 5/14-131 40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140
4	4	40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134
5	5	40 ILCS 5/14-131
6	6	40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
7	7	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
8	8	40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140
9	9	Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning in State fiscal year 2025, if the Comptroller requests the Board of Trustees of one of those Systems to submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then that Board of Trustees shall submit those additional vouchers as directed by the Comptroller, notwithstanding existing limits on the amounts to be vouchered each month. With regard to the General Assembly, State Employees, Downstate Teachers, and Judges Articles, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the rate of payroll certified by the System for that State fiscal year. For the State Universities Article, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the annual certified contribution to the System for that State fiscal year. Makes conforming changes. Effective July 1, 2024.
10	10	LRB103 34580 RPS 64418 b LRB103 34580 RPS 64418 b
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12	12	A BILL FOR
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15	15	1 AN ACT concerning public employee benefits.
16	16	2 Be it enacted by the People of the State of Illinois,
17	17	3 represented in the General Assembly:
18	18	4 Section 5. The Illinois Pension Code is amended by
19	19	5 changing Sections 2-134, 14-131, 15-165, 16-158, and 18-140 as
20	20	6 follows:
21	21	7 (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
22	22	8 Sec. 2-134. To certify required State contributions and
23	23	9 submit vouchers.
24	24	10 (a) The Board shall certify to the Governor on or before
25	25	11 December 15 of each year until December 15, 2011 the amount of
26	26	12 the required State contribution to the System for the next
27	27	13 fiscal year and shall specifically identify the System's
28	28	14 projected State normal cost for that fiscal year. The
29	29	15 certification shall include a copy of the actuarial
30	30	16 recommendations upon which it is based and shall specifically
31	31	17 identify the System's projected State normal cost for that
32	32	18 fiscal year.
33	33	19 On or before November 1 of each year, beginning November
34	34	20 1, 2012, the Board shall submit to the State Actuary, the
35	35	21 Governor, and the General Assembly a proposed certification of
36	36	22 the amount of the required State contribution to the System
37	37	23 for the next fiscal year, along with all of the actuarial
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41	41	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2739 Introduced 1/12/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
42	42	40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-13440 ILCS 5/14-13140 ILCS 5/15-165 from Ch. 108 1/2, par. 15-16540 ILCS 5/16-158 from Ch. 108 1/2, par. 16-15840 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140 40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134 40 ILCS 5/14-131 40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140
43	43	40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134
44	44	40 ILCS 5/14-131
45	45	40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
46	46	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
47	47	40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140
48	48	Amends the General Assembly, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Provides that, beginning in State fiscal year 2025, if the Comptroller requests the Board of Trustees of one of those Systems to submit, during a State fiscal year, vouchers for multiple monthly payments for the advance payment of State contributions due to the System for that State fiscal year, then that Board of Trustees shall submit those additional vouchers as directed by the Comptroller, notwithstanding existing limits on the amounts to be vouchered each month. With regard to the General Assembly, State Employees, Downstate Teachers, and Judges Articles, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the rate of payroll certified by the System for that State fiscal year. For the State Universities Article, specifies that, unless an act of appropriations provides otherwise, the Boards of Trustees shall not submit, in any State fiscal year, vouchers for the payment of State contributions in an amount that exceeds the annual certified contribution to the System for that State fiscal year. Makes conforming changes. Effective July 1, 2024.
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50	50	LRB103 34580 RPS 64418 b
51	51	A BILL FOR
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57	57	40 ILCS 5/2-134 from Ch. 108 1/2, par. 2-134
58	58	40 ILCS 5/14-131
59	59	40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
60	60	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
61	61	40 ILCS 5/18-140 from Ch. 108 1/2, par. 18-140
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80	80	1 assumptions, calculations, and data upon which that proposed
81	81	2 certification is based. On or before January 1 of each year
82	82	3 beginning January 1, 2013, the State Actuary shall issue a
83	83	4 preliminary report concerning the proposed certification and
84	84	5 identifying, if necessary, recommended changes in actuarial
85	85	6 assumptions that the Board must consider before finalizing its
86	86	7 certification of the required State contributions. On or
87	87	8 before January 15, 2013 and every January 15 thereafter, the
88	88	9 Board shall certify to the Governor and the General Assembly
89	89	10 the amount of the required State contribution for the next
90	90	11 fiscal year. The Board's certification must note any
91	91	12 deviations from the State Actuary's recommended changes, the
92	92	13 reason or reasons for not following the State Actuary's
93	93	14 recommended changes, and the fiscal impact of not following
94	94	15 the State Actuary's recommended changes on the required State
95	95	16 contribution.
96	96	17 On or before May 1, 2004, the Board shall recalculate and
97	97	18 recertify to the Governor the amount of the required State
98	98	19 contribution to the System for State fiscal year 2005, taking
99	99	20 into account the amounts appropriated to and received by the
100	100	21 System under subsection (d) of Section 7.2 of the General
101	101	22 Obligation Bond Act.
102	102	23 On or before July 1, 2005, the Board shall recalculate and
103	103	24 recertify to the Governor the amount of the required State
104	104	25 contribution to the System for State fiscal year 2006, taking
105	105	26 into account the changes in required State contributions made
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116	116	1 by this amendatory Act of the 94th General Assembly.
117	117	2 On or before April 1, 2011, the Board shall recalculate
118	118	3 and recertify to the Governor the amount of the required State
119	119	4 contribution to the System for State fiscal year 2011,
120	120	5 applying the changes made by Public Act 96-889 to the System's
121	121	6 assets and liabilities as of June 30, 2009 as though Public Act
122	122	7 96-889 was approved on that date.
123	123	8 By November 1, 2017, the Board shall recalculate and
124	124	9 recertify to the State Actuary, the Governor, and the General
125	125	10 Assembly the amount of the State contribution to the System
126	126	11 for State fiscal year 2018, taking into account the changes in
127	127	12 required State contributions made by this amendatory Act of
128	128	13 the 100th General Assembly. The State Actuary shall review the
129	129	14 assumptions and valuations underlying the Board's revised
130	130	15 certification and issue a preliminary report concerning the
131	131	16 proposed recertification and identifying, if necessary,
132	132	17 recommended changes in actuarial assumptions that the Board
133	133	18 must consider before finalizing its certification of the
134	134	19 required State contributions. The Board's final certification
135	135	20 must note any deviations from the State Actuary's recommended
136	136	21 changes, the reason or reasons for not following the State
137	137	22 Actuary's recommended changes, and the fiscal impact of not
138	138	23 following the State Actuary's recommended changes on the
139	139	24 required State contribution.
140	140	25 (b) Unless otherwise directed by the Comptroller under
141	141	26 subsection (b-1), Beginning in State fiscal year 1996, on or
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152	152	1 as soon as possible after the 15th day of each month the Board
153	153	2 shall submit vouchers for payment of State contributions to
154	154	3 the System for the applicable month on the 15th day of each
155	155	4 month, or as soon thereafter as may be practicable. The amount
156	156	5 vouchered for a monthly payment shall total , in a total
157	157	6 monthly amount of one-twelfth of the required annual State
158	158	7 contribution certified under subsection (a).
159	159	8 (b-1) Beginning in State fiscal year 2025, if the
160	160	9 Comptroller requests that the Board submit, during a State
161	161	10 fiscal year, vouchers for multiple monthly payments for
162	162	11 advance payment of State contributions due to the System for
163	163	12 that State fiscal year, then the Board shall submit those
164	164	13 additional monthly vouchers as directed by the Comptroller,
165	165	14 notwithstanding subsection (b). Unless an act of
166	166	15 appropriations provides otherwise, nothing in this Section
167	167	16 authorizes the Board to submit, in a State fiscal year,
168	168	17 vouchers for the payment of State contributions to the System
169	169	18 in an amount that exceeds the rate of payroll that is certified
170	170	19 by the System under this Section for that State fiscal year.
171	171	20 From the effective date of this amendatory Act of the 93rd
172	172	21 General Assembly through June 30, 2004, the Board shall not
173	173	22 submit vouchers for the remainder of fiscal year 2004 in
174	174	23 excess of the fiscal year 2004 certified contribution amount
175	175	24 determined under this Section after taking into consideration
176	176	25 the transfer to the System under subsection (d) of Section
177	177	26 6z-61 of the State Finance Act.
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188	188	1 (b-2) The These vouchers described in subsections (b) and
189	189	2 (b-1) shall be paid by the State Comptroller and Treasurer by
190	190	3 warrants drawn on the funds appropriated to the System for
191	191	4 that fiscal year.
192	192	5 If in any month the amount remaining unexpended from all
193	193	6 other appropriations to the System for the applicable fiscal
194	194	7 year (including the appropriations to the System under Section
195	195	8 8.12 of the State Finance Act and Section 1 of the State
196	196	9 Pension Funds Continuing Appropriation Act) is less than the
197	197	10 amount lawfully vouchered under this Section, the difference
198	198	11 shall be paid from the General Revenue Fund under the
199	199	12 continuing appropriation authority provided in Section 1.1 of
200	200	13 the State Pension Funds Continuing Appropriation Act.
201	201	14 (c) The full amount of any annual appropriation for the
202	202	15 System for State fiscal year 1995 shall be transferred and
203	203	16 made available to the System at the beginning of that fiscal
204	204	17 year at the request of the Board. Any excess funds remaining at
205	205	18 the end of any fiscal year from appropriations shall be
206	206	19 retained by the System as a general reserve to meet the
207	207	20 System's accrued liabilities.
208	208	21 (Source: P.A. 100-23, eff. 7-6-17.)
209	209	22 (40 ILCS 5/14-131)
210	210	23 Sec. 14-131. Contributions by State.
211	211	24 (a) The State shall make contributions to the System by
212	212	25 appropriations of amounts which, together with other employer
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223	223	1 contributions from trust, federal, and other funds, employee
224	224	2 contributions, investment income, and other income, will be
225	225	3 sufficient to meet the cost of maintaining and administering
226	226	4 the System on a 90% funded basis in accordance with actuarial
227	227	5 recommendations.
228	228	6 For the purposes of this Section and Section 14-135.08,
229	229	7 references to State contributions refer only to employer
230	230	8 contributions and do not include employee contributions that
231	231	9 are picked up or otherwise paid by the State or a department on
232	232	10 behalf of the employee.
233	233	11 (b) The Board shall determine the total amount of State
234	234	12 contributions required for each fiscal year on the basis of
235	235	13 the actuarial tables and other assumptions adopted by the
236	236	14 Board, using the formula in subsection (e).
237	237	15 The Board shall also determine a State contribution rate
238	238	16 for each fiscal year, expressed as a percentage of payroll,
239	239	17 based on the total required State contribution for that fiscal
240	240	18 year (less the amount received by the System from
241	241	19 appropriations under Section 8.12 of the State Finance Act and
242	242	20 Section 1 of the State Pension Funds Continuing Appropriation
243	243	21 Act, if any, for the fiscal year ending on the June 30
244	244	22 immediately preceding the applicable November 15 certification
245	245	23 deadline), the estimated payroll (including all forms of
246	246	24 compensation) for personal services rendered by eligible
247	247	25 employees, and the recommendations of the actuary.
248	248	26 For the purposes of this Section and Section 14.1 of the
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259	259	1 State Finance Act, the term "eligible employees" includes
260	260	2 employees who participate in the System, persons who may elect
261	261	3 to participate in the System but have not so elected, persons
262	262	4 who are serving a qualifying period that is required for
263	263	5 participation, and annuitants employed by a department as
264	264	6 described in subdivision (a)(1) or (a)(2) of Section 14-111.
265	265	7 (c) Contributions shall be made by the several departments
266	266	8 for each pay period by warrants drawn by the State Comptroller
267	267	9 against their respective funds or appropriations based upon
268	268	10 vouchers stating the amount to be so contributed. These
269	269	11 amounts shall be based on the full rate certified by the Board
270	270	12 under Section 14-135.08 for that fiscal year. From March 5,
271	271	13 2004 (the effective date of Public Act 93-665) through the
272	272	14 payment of the final payroll from fiscal year 2004
273	273	15 appropriations, the several departments shall not make
274	274	16 contributions for the remainder of fiscal year 2004 but shall
275	275	17 instead make payments as required under subsection (a-1) of
276	276	18 Section 14.1 of the State Finance Act. The several departments
277	277	19 shall resume those contributions at the commencement of fiscal
278	278	20 year 2005.
279	279	21 (c-1) Notwithstanding subsection (c) of this Section, for
280	280	22 fiscal years 2010, 2012, and each fiscal year thereafter,
281	281	23 contributions by the several departments are not required to
282	282	24 be made for General Revenue Funds payrolls processed by the
283	283	25 Comptroller. Payrolls paid by the several departments from all
284	284	26 other State funds must continue to be processed pursuant to
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295	295	1 subsection (c) of this Section.
296	296	2 (c-2) Unless otherwise directed by the Comptroller under
297	297	3 subsection (c-3), For State fiscal years 2010, 2012, and each
298	298	4 fiscal year thereafter, on or as soon as possible after the
299	299	5 15th day of each month, the Board shall submit vouchers for
300	300	6 payment of State contributions to the System for the
301	301	7 applicable month on the 15th day of each month, or as soon
302	302	8 thereafter as may be practicable. The amount vouchered for a
303	303	9 monthly payment shall total , in a total monthly amount of
304	304	10 one-twelfth of the fiscal year General Revenue Fund
305	305	11 contribution as certified by the System pursuant to Section
306	306	12 14-135.08 of this the Illinois Pension Code.
307	307	13 (c-3) Beginning in State fiscal year 2025, if the
308	308	14 Comptroller requests that the Board submit, during a State
309	309	15 fiscal year, vouchers for multiple monthly payments for
310	310	16 advance payment of State contributions due to the System for
311	311	17 that State fiscal year, then the Board shall submit those
312	312	18 additional vouchers as directed by the Comptroller,
313	313	19 notwithstanding subsection (c-2). Unless an act of
314	314	20 appropriations provides otherwise, nothing in this Section
315	315	21 authorizes the Board to submit, in a State fiscal year,
316	316	22 vouchers for the payment of State contributions to the System
317	317	23 in an amount that exceeds the rate of payroll that is certified
318	318	24 by the System under Section 14-135.08 for that State fiscal
319	319	25 year.
320	320	26 (d) If an employee is paid from trust funds or federal
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331	331	1 funds, the department or other employer shall pay employer
332	332	2 contributions from those funds to the System at the certified
333	333	3 rate, unless the terms of the trust or the federal-State
334	334	4 agreement preclude the use of the funds for that purpose, in
335	335	5 which case the required employer contributions shall be paid
336	336	6 by the State.
337	337	7 (e) For State fiscal years 2012 through 2045, the minimum
338	338	8 contribution to the System to be made by the State for each
339	339	9 fiscal year shall be an amount determined by the System to be
340	340	10 sufficient to bring the total assets of the System up to 90% of
341	341	11 the total actuarial liabilities of the System by the end of
342	342	12 State fiscal year 2045. In making these determinations, the
343	343	13 required State contribution shall be calculated each year as a
344	344	14 level percentage of payroll over the years remaining to and
345	345	15 including fiscal year 2045 and shall be determined under the
346	346	16 projected unit credit actuarial cost method.
347	347	17 A change in an actuarial or investment assumption that
348	348	18 increases or decreases the required State contribution and
349	349	19 first applies in State fiscal year 2018 or thereafter shall be
350	350	20 implemented in equal annual amounts over a 5-year period
351	351	21 beginning in the State fiscal year in which the actuarial
352	352	22 change first applies to the required State contribution.
353	353	23 A change in an actuarial or investment assumption that
354	354	24 increases or decreases the required State contribution and
355	355	25 first applied to the State contribution in fiscal year 2014,
356	356	26 2015, 2016, or 2017 shall be implemented:
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367	367	1 (i) as already applied in State fiscal years before
368	368	2 2018; and
369	369	3 (ii) in the portion of the 5-year period beginning in
370	370	4 the State fiscal year in which the actuarial change first
371	371	5 applied that occurs in State fiscal year 2018 or
372	372	6 thereafter, by calculating the change in equal annual
373	373	7 amounts over that 5-year period and then implementing it
374	374	8 at the resulting annual rate in each of the remaining
375	375	9 fiscal years in that 5-year period.
376	376	10 For State fiscal years 1996 through 2005, the State
377	377	11 contribution to the System, as a percentage of the applicable
378	378	12 employee payroll, shall be increased in equal annual
379	379	13 increments so that by State fiscal year 2011, the State is
380	380	14 contributing at the rate required under this Section; except
381	381	15 that (i) for State fiscal year 1998, for all purposes of this
382	382	16 Code and any other law of this State, the certified percentage
383	383	17 of the applicable employee payroll shall be 5.052% for
384	384	18 employees earning eligible creditable service under Section
385	385	19 14-110 and 6.500% for all other employees, notwithstanding any
386	386	20 contrary certification made under Section 14-135.08 before
387	387	21 July 7, 1997 (the effective date of Public Act 90-65), and (ii)
388	388	22 in the following specified State fiscal years, the State
389	389	23 contribution to the System shall not be less than the
390	390	24 following indicated percentages of the applicable employee
391	391	25 payroll, even if the indicated percentage will produce a State
392	392	26 contribution in excess of the amount otherwise required under
393	393
394	394
395	395
396	396
397	397
398	398	SB2739 - 10 - LRB103 34580 RPS 64418 b
399	399
400	400
401	401	SB2739- 11 -LRB103 34580 RPS 64418 b SB2739 - 11 - LRB103 34580 RPS 64418 b
402	402	SB2739 - 11 - LRB103 34580 RPS 64418 b
403	403	1 this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
404	404	2 FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
405	405	3 and 10.8% in FY 2004.
406	406	4 Beginning in State fiscal year 2046, the minimum State
407	407	5 contribution for each fiscal year shall be the amount needed
408	408	6 to maintain the total assets of the System at 90% of the total
409	409	7 actuarial liabilities of the System.
410	410	8 Amounts received by the System pursuant to Section 25 of
411	411	9 the Budget Stabilization Act or Section 8.12 of the State
412	412	10 Finance Act in any fiscal year do not reduce and do not
413	413	11 constitute payment of any portion of the minimum State
414	414	12 contribution required under this Article in that fiscal year.
415	415	13 Such amounts shall not reduce, and shall not be included in the
416	416	14 calculation of, the required State contributions under this
417	417	15 Article in any future year until the System has reached a
418	418	16 funding ratio of at least 90%. A reference in this Article to
419	419	17 the "required State contribution" or any substantially similar
420	420	18 term does not include or apply to any amounts payable to the
421	421	19 System under Section 25 of the Budget Stabilization Act.
422	422	20 Notwithstanding any other provision of this Section, the
423	423	21 required State contribution for State fiscal year 2005 and for
424	424	22 fiscal year 2008 and each fiscal year thereafter, as
425	425	23 calculated under this Section and certified under Section
426	426	24 14-135.08, shall not exceed an amount equal to (i) the amount
427	427	25 of the required State contribution that would have been
428	428	26 calculated under this Section for that fiscal year if the
429	429
430	430
431	431
432	432
433	433
434	434	SB2739 - 11 - LRB103 34580 RPS 64418 b
435	435
436	436
437	437	SB2739- 12 -LRB103 34580 RPS 64418 b SB2739 - 12 - LRB103 34580 RPS 64418 b
438	438	SB2739 - 12 - LRB103 34580 RPS 64418 b
439	439	1 System had not received any payments under subsection (d) of
440	440	2 Section 7.2 of the General Obligation Bond Act, minus (ii) the
441	441	3 portion of the State's total debt service payments for that
442	442	4 fiscal year on the bonds issued in fiscal year 2003 for the
443	443	5 purposes of that Section 7.2, as determined and certified by
444	444	6 the Comptroller, that is the same as the System's portion of
445	445	7 the total moneys distributed under subsection (d) of Section
446	446	8 7.2 of the General Obligation Bond Act.
447	447	9 (f) (Blank).
448	448	10 (g) For purposes of determining the required State
449	449	11 contribution to the System, the value of the System's assets
450	450	12 shall be equal to the actuarial value of the System's assets,
451	451	13 which shall be calculated as follows:
452	452	14 As of June 30, 2008, the actuarial value of the System's
453	453	15 assets shall be equal to the market value of the assets as of
454	454	16 that date. In determining the actuarial value of the System's
455	455	17 assets for fiscal years after June 30, 2008, any actuarial
456	456	18 gains or losses from investment return incurred in a fiscal
457	457	19 year shall be recognized in equal annual amounts over the
458	458	20 5-year period following that fiscal year.
459	459	21 (h) For purposes of determining the required State
460	460	22 contribution to the System for a particular year, the
461	461	23 actuarial value of assets shall be assumed to earn a rate of
462	462	24 return equal to the System's actuarially assumed rate of
463	463	25 return.
464	464	26 (i) (Blank).
465	465
466	466
467	467
468	468
469	469
470	470	SB2739 - 12 - LRB103 34580 RPS 64418 b
471	471
472	472
473	473	SB2739- 13 -LRB103 34580 RPS 64418 b SB2739 - 13 - LRB103 34580 RPS 64418 b
474	474	SB2739 - 13 - LRB103 34580 RPS 64418 b
475	475	1 (j) (Blank).
476	476	2 (k) For fiscal year 2012 and each fiscal year thereafter,
477	477	3 after the submission of all payments for eligible employees
478	478	4 from personal services line items paid from the General
479	479	5 Revenue Fund in the fiscal year have been made, the
480	480	6 Comptroller shall provide to the System a certification of the
481	481	7 sum of all expenditures in the fiscal year for personal
482	482	8 services. Upon receipt of the certification, the System shall
483	483	9 determine the amount due to the System based on the full rate
484	484	10 certified by the Board under Section 14-135.08 for the fiscal
485	485	11 year in order to meet the State's obligation under this
486	486	12 Section. The System shall compare this amount due to the
487	487	13 amount received by the System for the fiscal year. If the
488	488	14 amount due is more than the amount received, the difference
489	489	15 shall be termed the "Prior Fiscal Year Shortfall" for purposes
490	490	16 of this Section, and the Prior Fiscal Year Shortfall shall be
491	491	17 satisfied under Section 1.2 of the State Pension Funds
492	492	18 Continuing Appropriation Act. If the amount due is less than
493	493	19 the amount received, the difference shall be termed the "Prior
494	494	20 Fiscal Year Overpayment" for purposes of this Section, and the
495	495	21 Prior Fiscal Year Overpayment shall be repaid by the System to
496	496	22 the General Revenue Fund as soon as practicable after the
497	497	23 certification.
498	498	24 (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
499	499	25 101-10, eff. 6-5-19.)
500	500
501	501
502	502
503	503
504	504
505	505	SB2739 - 13 - LRB103 34580 RPS 64418 b
506	506
507	507
508	508	SB2739- 14 -LRB103 34580 RPS 64418 b SB2739 - 14 - LRB103 34580 RPS 64418 b
509	509	SB2739 - 14 - LRB103 34580 RPS 64418 b
510	510	1 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
511	511	2 Sec. 15-165. To certify amounts and submit vouchers.
512	512	3 (a) The Board shall certify to the Governor on or before
513	513	4 November 15 of each year until November 15, 2011 the
514	514	5 appropriation required from State funds for the purposes of
515	515	6 this System for the following fiscal year. The certification
516	516	7 under this subsection (a) shall include a copy of the
517	517	8 actuarial recommendations upon which it is based and shall
518	518	9 specifically identify the System's projected State normal cost
519	519	10 for that fiscal year and the projected State cost for the
520	520	11 self-managed plan for that fiscal year.
521	521	12 On or before May 1, 2004, the Board shall recalculate and
522	522	13 recertify to the Governor the amount of the required State
523	523	14 contribution to the System for State fiscal year 2005, taking
524	524	15 into account the amounts appropriated to and received by the
525	525	16 System under subsection (d) of Section 7.2 of the General
526	526	17 Obligation Bond Act.
527	527	18 On or before July 1, 2005, the Board shall recalculate and
528	528	19 recertify to the Governor the amount of the required State
529	529	20 contribution to the System for State fiscal year 2006, taking
530	530	21 into account the changes in required State contributions made
531	531	22 by this amendatory Act of the 94th General Assembly.
532	532	23 On or before April 1, 2011, the Board shall recalculate
533	533	24 and recertify to the Governor the amount of the required State
534	534	25 contribution to the System for State fiscal year 2011,
535	535	26 applying the changes made by Public Act 96-889 to the System's
536	536
537	537
538	538
539	539
540	540
541	541	SB2739 - 14 - LRB103 34580 RPS 64418 b
542	542
543	543
544	544	SB2739- 15 -LRB103 34580 RPS 64418 b SB2739 - 15 - LRB103 34580 RPS 64418 b
545	545	SB2739 - 15 - LRB103 34580 RPS 64418 b
546	546	1 assets and liabilities as of June 30, 2009 as though Public Act
547	547	2 96-889 was approved on that date.
548	548	3 (a-5) On or before November 1 of each year, beginning
549	549	4 November 1, 2012, the Board shall submit to the State Actuary,
550	550	5 the Governor, and the General Assembly a proposed
551	551	6 certification of the amount of the required State contribution
552	552	7 to the System for the next fiscal year, along with all of the
553	553	8 actuarial assumptions, calculations, and data upon which that
554	554	9 proposed certification is based. On or before January 1 of
555	555	10 each year, beginning January 1, 2013, the State Actuary shall
556	556	11 issue a preliminary report concerning the proposed
557	557	12 certification and identifying, if necessary, recommended
558	558	13 changes in actuarial assumptions that the Board must consider
559	559	14 before finalizing its certification of the required State
560	560	15 contributions. On or before January 15, 2013 and each January
561	561	16 15 thereafter, the Board shall certify to the Governor and the
562	562	17 General Assembly the amount of the required State contribution
563	563	18 for the next fiscal year. The Board's certification must note,
564	564	19 in a written response to the State Actuary, any deviations
565	565	20 from the State Actuary's recommended changes, the reason or
566	566	21 reasons for not following the State Actuary's recommended
567	567	22 changes, and the fiscal impact of not following the State
568	568	23 Actuary's recommended changes on the required State
569	569	24 contribution.
570	570	25 (a-10) By November 1, 2017, the Board shall recalculate
571	571	26 and recertify to the State Actuary, the Governor, and the
572	572
573	573
574	574
575	575
576	576
577	577	SB2739 - 15 - LRB103 34580 RPS 64418 b
578	578
579	579
580	580	SB2739- 16 -LRB103 34580 RPS 64418 b SB2739 - 16 - LRB103 34580 RPS 64418 b
581	581	SB2739 - 16 - LRB103 34580 RPS 64418 b
582	582	1 General Assembly the amount of the State contribution to the
583	583	2 System for State fiscal year 2018, taking into account the
584	584	3 changes in required State contributions made by this
585	585	4 amendatory Act of the 100th General Assembly. The State
586	586	5 Actuary shall review the assumptions and valuations underlying
587	587	6 the Board's revised certification and issue a preliminary
588	588	7 report concerning the proposed recertification and
589	589	8 identifying, if necessary, recommended changes in actuarial
590	590	9 assumptions that the Board must consider before finalizing its
591	591	10 certification of the required State contributions. The Board's
592	592	11 final certification must note any deviations from the State
593	593	12 Actuary's recommended changes, the reason or reasons for not
594	594	13 following the State Actuary's recommended changes, and the
595	595	14 fiscal impact of not following the State Actuary's recommended
596	596	15 changes on the required State contribution.
597	597	16 (a-15) On or after June 15, 2019, but no later than June
598	598	17 30, 2019, the Board shall recalculate and recertify to the
599	599	18 Governor and the General Assembly the amount of the State
600	600	19 contribution to the System for State fiscal year 2019, taking
601	601	20 into account the changes in required State contributions made
602	602	21 by this amendatory Act of the 100th General Assembly. The
603	603	22 recalculation shall be made using assumptions adopted by the
604	604	23 Board for the original fiscal year 2019 certification. The
605	605	24 monthly voucher for the 12th month of fiscal year 2019 shall be
606	606	25 paid by the Comptroller after the recertification required
607	607	26 pursuant to this subsection is submitted to the Governor,
608	608
609	609
610	610
611	611
612	612
613	613	SB2739 - 16 - LRB103 34580 RPS 64418 b
614	614
615	615
616	616	SB2739- 17 -LRB103 34580 RPS 64418 b SB2739 - 17 - LRB103 34580 RPS 64418 b
617	617	SB2739 - 17 - LRB103 34580 RPS 64418 b
618	618	1 Comptroller, and General Assembly. The recertification
619	619	2 submitted to the General Assembly shall be filed with the
620	620	3 Clerk of the House of Representatives and the Secretary of the
621	621	4 Senate in electronic form only, in the manner that the Clerk
622	622	5 and the Secretary shall direct.
623	623	6 (b) The Board shall certify to the State Comptroller or
624	624	7 employer, as the case may be, from time to time, by its
625	625	8 chairperson and secretary, with its seal attached, the amounts
626	626	9 payable to the System from the various funds.
627	627	10 (c) Unless otherwise directed by the Comptroller under
628	628	11 subsection (c-1), Beginning in State fiscal year 1996, on or
629	629	12 as soon as possible after the 15th day of each month the Board
630	630	13 shall submit vouchers for payment of State contributions to
631	631	14 the System for the applicable month on the 15th day of each
632	632	15 month, or as soon thereafter as may be practicable. The amount
633	633	16 vouchered for a monthly payment shall total , in a total
634	634	17 monthly amount of one-twelfth of the required annual State
635	635	18 contribution certified under subsection (a).
636	636	19 (c-1) Beginning in State fiscal year 2025, if the
637	637	20 Comptroller requests that the Board submit, during a State
638	638	21 fiscal year, vouchers for multiple monthly payments for
639	639	22 advance payment of State contributions due to the System for
640	640	23 that State fiscal year, then the Board shall submit those
641	641	24 additional vouchers as directed by the Comptroller,
642	642	25 notwithstanding subsection (c). Unless an act of
643	643	26 appropriations provides otherwise, nothing in this Section
644	644
645	645
646	646
647	647
648	648
649	649	SB2739 - 17 - LRB103 34580 RPS 64418 b
650	650
651	651
652	652	SB2739- 18 -LRB103 34580 RPS 64418 b SB2739 - 18 - LRB103 34580 RPS 64418 b
653	653	SB2739 - 18 - LRB103 34580 RPS 64418 b
654	654	1 authorizes the Board to submit, in a State fiscal year,
655	655	2 vouchers for the payment of State contributions to the System
656	656	3 in an amount that exceeds the annual certified contribution
657	657	4 for the System under this Section for that State fiscal year.
658	658	5 From the effective date of this amendatory Act of the 93rd
659	659	6 General Assembly through June 30, 2004, the Board shall not
660	660	7 submit vouchers for the remainder of fiscal year 2004 in
661	661	8 excess of the fiscal year 2004 certified contribution amount
662	662	9 determined under this Section after taking into consideration
663	663	10 the transfer to the System under subsection (b) of Section
664	664	11 6z-61 of the State Finance Act.
665	665	12 (c-2) The These vouchers described in subsections (c) and
666	666	13 (c-1) shall be paid by the State Comptroller and Treasurer by
667	667	14 warrants drawn on the funds appropriated to the System for
668	668	15 that fiscal year.
669	669	16 If in any month the amount remaining unexpended from all
670	670	17 other appropriations to the System for the applicable fiscal
671	671	18 year (including the appropriations to the System under Section
672	672	19 8.12 of the State Finance Act and Section 1 of the State
673	673	20 Pension Funds Continuing Appropriation Act) is less than the
674	674	21 amount lawfully vouchered under this Section, the difference
675	675	22 shall be paid from the General Revenue Fund under the
676	676	23 continuing appropriation authority provided in Section 1.1 of
677	677	24 the State Pension Funds Continuing Appropriation Act.
678	678	25 (d) So long as the payments received are the full amount
679	679	26 lawfully vouchered under this Section, payments received by
680	680
681	681
682	682
683	683
684	684
685	685	SB2739 - 18 - LRB103 34580 RPS 64418 b
686	686
687	687
688	688	SB2739- 19 -LRB103 34580 RPS 64418 b SB2739 - 19 - LRB103 34580 RPS 64418 b
689	689	SB2739 - 19 - LRB103 34580 RPS 64418 b
690	690	1 the System under this Section shall be applied first toward
691	691	2 the employer contribution to the self-managed plan established
692	692	3 under Section 15-158.2. Payments shall be applied second
693	693	4 toward the employer's portion of the normal costs of the
694	694	5 System, as defined in subsection (f) of Section 15-155. The
695	695	6 balance shall be applied toward the unfunded actuarial
696	696	7 liabilities of the System.
697	697	8 (e) In the event that the System does not receive, as a
698	698	9 result of legislative enactment or otherwise, payments
699	699	10 sufficient to fully fund the employer contribution to the
700	700	11 self-managed plan established under Section 15-158.2 and to
701	701	12 fully fund that portion of the employer's portion of the
702	702	13 normal costs of the System, as calculated in accordance with
703	703	14 Section 15-155(a-1), then any payments received shall be
704	704	15 applied proportionately to the optional retirement program
705	705	16 established under Section 15-158.2 and to the employer's
706	706	17 portion of the normal costs of the System, as calculated in
707	707	18 accordance with Section 15-155(a-1).
708	708	19 (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
709	709	20 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
710	710	21 Sec. 16-158. Contributions by State and other employing
711	711	22 units.
712	712	23 (a) The State shall make contributions to the System by
713	713	24 means of appropriations from the Common School Fund and other
714	714	25 State funds of amounts which, together with other employer
715	715
716	716
717	717
718	718
719	719
720	720	SB2739 - 19 - LRB103 34580 RPS 64418 b
721	721
722	722
723	723	SB2739- 20 -LRB103 34580 RPS 64418 b SB2739 - 20 - LRB103 34580 RPS 64418 b
724	724	SB2739 - 20 - LRB103 34580 RPS 64418 b
725	725	1 contributions, employee contributions, investment income, and
726	726	2 other income, will be sufficient to meet the cost of
727	727	3 maintaining and administering the System on a 90% funded basis
728	728	4 in accordance with actuarial recommendations.
729	729	5 The Board shall determine the amount of State
730	730	6 contributions required for each fiscal year on the basis of
731	731	7 the actuarial tables and other assumptions adopted by the
732	732	8 Board and the recommendations of the actuary, using the
733	733	9 formula in subsection (b-3).
734	734	10 (a-1) Annually, on or before November 15 until November
735	735	11 15, 2011, the Board shall certify to the Governor the amount of
736	736	12 the required State contribution for the coming fiscal year.
737	737	13 The certification under this subsection (a-1) shall include a
738	738	14 copy of the actuarial recommendations upon which it is based
739	739	15 and shall specifically identify the System's projected State
740	740	16 normal cost for that fiscal year.
741	741	17 On or before May 1, 2004, the Board shall recalculate and
742	742	18 recertify to the Governor the amount of the required State
743	743	19 contribution to the System for State fiscal year 2005, taking
744	744	20 into account the amounts appropriated to and received by the
745	745	21 System under subsection (d) of Section 7.2 of the General
746	746	22 Obligation Bond Act.
747	747	23 On or before July 1, 2005, the Board shall recalculate and
748	748	24 recertify to the Governor the amount of the required State
749	749	25 contribution to the System for State fiscal year 2006, taking
750	750	26 into account the changes in required State contributions made
751	751
752	752
753	753
754	754
755	755
756	756	SB2739 - 20 - LRB103 34580 RPS 64418 b
757	757
758	758
759	759	SB2739- 21 -LRB103 34580 RPS 64418 b SB2739 - 21 - LRB103 34580 RPS 64418 b
760	760	SB2739 - 21 - LRB103 34580 RPS 64418 b
761	761	1 by Public Act 94-4.
762	762	2 On or before April 1, 2011, the Board shall recalculate
763	763	3 and recertify to the Governor the amount of the required State
764	764	4 contribution to the System for State fiscal year 2011,
765	765	5 applying the changes made by Public Act 96-889 to the System's
766	766	6 assets and liabilities as of June 30, 2009 as though Public Act
767	767	7 96-889 was approved on that date.
768	768	8 (a-5) On or before November 1 of each year, beginning
769	769	9 November 1, 2012, the Board shall submit to the State Actuary,
770	770	10 the Governor, and the General Assembly a proposed
771	771	11 certification of the amount of the required State contribution
772	772	12 to the System for the next fiscal year, along with all of the
773	773	13 actuarial assumptions, calculations, and data upon which that
774	774	14 proposed certification is based. On or before January 1 of
775	775	15 each year, beginning January 1, 2013, the State Actuary shall
776	776	16 issue a preliminary report concerning the proposed
777	777	17 certification and identifying, if necessary, recommended
778	778	18 changes in actuarial assumptions that the Board must consider
779	779	19 before finalizing its certification of the required State
780	780	20 contributions. On or before January 15, 2013 and each January
781	781	21 15 thereafter, the Board shall certify to the Governor and the
782	782	22 General Assembly the amount of the required State contribution
783	783	23 for the next fiscal year. The Board's certification must note
784	784	24 any deviations from the State Actuary's recommended changes,
785	785	25 the reason or reasons for not following the State Actuary's
786	786	26 recommended changes, and the fiscal impact of not following
787	787
788	788
789	789
790	790
791	791
792	792	SB2739 - 21 - LRB103 34580 RPS 64418 b
793	793
794	794
795	795	SB2739- 22 -LRB103 34580 RPS 64418 b SB2739 - 22 - LRB103 34580 RPS 64418 b
796	796	SB2739 - 22 - LRB103 34580 RPS 64418 b
797	797	1 the State Actuary's recommended changes on the required State
798	798	2 contribution.
799	799	3 (a-10) By November 1, 2017, the Board shall recalculate
800	800	4 and recertify to the State Actuary, the Governor, and the
801	801	5 General Assembly the amount of the State contribution to the
802	802	6 System for State fiscal year 2018, taking into account the
803	803	7 changes in required State contributions made by Public Act
804	804	8 100-23. The State Actuary shall review the assumptions and
805	805	9 valuations underlying the Board's revised certification and
806	806	10 issue a preliminary report concerning the proposed
807	807	11 recertification and identifying, if necessary, recommended
808	808	12 changes in actuarial assumptions that the Board must consider
809	809	13 before finalizing its certification of the required State
810	810	14 contributions. The Board's final certification must note any
811	811	15 deviations from the State Actuary's recommended changes, the
812	812	16 reason or reasons for not following the State Actuary's
813	813	17 recommended changes, and the fiscal impact of not following
814	814	18 the State Actuary's recommended changes on the required State
815	815	19 contribution.
816	816	20 (a-15) On or after June 15, 2019, but no later than June
817	817	21 30, 2019, the Board shall recalculate and recertify to the
818	818	22 Governor and the General Assembly the amount of the State
819	819	23 contribution to the System for State fiscal year 2019, taking
820	820	24 into account the changes in required State contributions made
821	821	25 by Public Act 100-587. The recalculation shall be made using
822	822	26 assumptions adopted by the Board for the original fiscal year
823	823
824	824
825	825
826	826
827	827
828	828	SB2739 - 22 - LRB103 34580 RPS 64418 b
829	829
830	830
831	831	SB2739- 23 -LRB103 34580 RPS 64418 b SB2739 - 23 - LRB103 34580 RPS 64418 b
832	832	SB2739 - 23 - LRB103 34580 RPS 64418 b
833	833	1 2019 certification. The monthly voucher for the 12th month of
834	834	2 fiscal year 2019 shall be paid by the Comptroller after the
835	835	3 recertification required pursuant to this subsection is
836	836	4 submitted to the Governor, Comptroller, and General Assembly.
837	837	5 The recertification submitted to the General Assembly shall be
838	838	6 filed with the Clerk of the House of Representatives and the
839	839	7 Secretary of the Senate in electronic form only, in the manner
840	840	8 that the Clerk and the Secretary shall direct.
841	841	9 (b) Through State fiscal year 1995, the State
842	842	10 contributions shall be paid to the System in accordance with
843	843	11 Section 18-7 of the School Code.
844	844	12 (b-1) Unless otherwise directed by the Comptroller under
845	845	13 subsection (b-1.1), Beginning in State fiscal year 1996, on
846	846	14 the 15th day of each month, or as soon thereafter as may be
847	847	15 practicable, the Board shall submit vouchers for payment of
848	848	16 State contributions to the System for the applicable month on
849	849	17 the 15th day of each month, or as soon thereafter as may be
850	850	18 practicable. The amount vouchered for a monthly payment shall
851	851	19 total , in a total monthly amount of one-twelfth of the
852	852	20 required annual State contribution certified under subsection
853	853	21 (a-1).
854	854	22 (b-1.1) Beginning in State fiscal year 2025, if the
855	855	23 Comptroller requests that the Board submit, during a State
856	856	24 fiscal year, vouchers for multiple monthly payments for the
857	857	25 advance payment of State contributions due to the System for
858	858	26 that State fiscal year, then the Board shall submit those
859	859
860	860
861	861
862	862
863	863
864	864	SB2739 - 23 - LRB103 34580 RPS 64418 b
865	865
866	866
867	867	SB2739- 24 -LRB103 34580 RPS 64418 b SB2739 - 24 - LRB103 34580 RPS 64418 b
868	868	SB2739 - 24 - LRB103 34580 RPS 64418 b
869	869	1 additional vouchers as directed by the Comptroller,
870	870	2 notwithstanding subsection (b-1). Unless an act of
871	871	3 appropriations provides otherwise, nothing in this Section
872	872	4 authorizes the Board to submit, in a State fiscal year,
873	873	5 vouchers for the payment of State contributions to the System
874	874	6 in an amount that exceeds the rate of payroll that is certified
875	875	7 by the System under this Section for that State fiscal year.
876	876	8 From March 5, 2004 (the effective date of Public Act 93-665)
877	877	9 through June 30, 2004, the Board shall not submit vouchers for
878	878	10 the remainder of fiscal year 2004 in excess of the fiscal year
879	879	11 2004 certified contribution amount determined under this
880	880	12 Section after taking into consideration the transfer to the
881	881	13 System under subsection (a) of Section 6z-61 of the State
882	882	14 Finance Act.
883	883	15 (b-1.2) The These vouchers described in subsections (b-1)
884	884	16 and (b-1.1) shall be paid by the State Comptroller and
885	885	17 Treasurer by warrants drawn on the funds appropriated to the
886	886	18 System for that fiscal year.
887	887	19 If in any month the amount remaining unexpended from all
888	888	20 other appropriations to the System for the applicable fiscal
889	889	21 year (including the appropriations to the System under Section
890	890	22 8.12 of the State Finance Act and Section 1 of the State
891	891	23 Pension Funds Continuing Appropriation Act) is less than the
892	892	24 amount lawfully vouchered under this subsection, the
893	893	25 difference shall be paid from the Common School Fund under the
894	894	26 continuing appropriation authority provided in Section 1.1 of
895	895
896	896
897	897
898	898
899	899
900	900	SB2739 - 24 - LRB103 34580 RPS 64418 b
901	901
902	902
903	903	SB2739- 25 -LRB103 34580 RPS 64418 b SB2739 - 25 - LRB103 34580 RPS 64418 b
904	904	SB2739 - 25 - LRB103 34580 RPS 64418 b
905	905	1 the State Pension Funds Continuing Appropriation Act.
906	906	2 (b-2) Allocations from the Common School Fund apportioned
907	907	3 to school districts not coming under this System shall not be
908	908	4 diminished or affected by the provisions of this Article.
909	909	5 (b-3) For State fiscal years 2012 through 2045, the
910	910	6 minimum contribution to the System to be made by the State for
911	911	7 each fiscal year shall be an amount determined by the System to
912	912	8 be sufficient to bring the total assets of the System up to 90%
913	913	9 of the total actuarial liabilities of the System by the end of
914	914	10 State fiscal year 2045. In making these determinations, the
915	915	11 required State contribution shall be calculated each year as a
916	916	12 level percentage of payroll over the years remaining to and
917	917	13 including fiscal year 2045 and shall be determined under the
918	918	14 projected unit credit actuarial cost method.
919	919	15 For each of State fiscal years 2018, 2019, and 2020, the
920	920	16 State shall make an additional contribution to the System
921	921	17 equal to 2% of the total payroll of each employee who is deemed
922	922	18 to have elected the benefits under Section 1-161 or who has
923	923	19 made the election under subsection (c) of Section 1-161.
924	924	20 A change in an actuarial or investment assumption that
925	925	21 increases or decreases the required State contribution and
926	926	22 first applies in State fiscal year 2018 or thereafter shall be
927	927	23 implemented in equal annual amounts over a 5-year period
928	928	24 beginning in the State fiscal year in which the actuarial
929	929	25 change first applies to the required State contribution.
930	930	26 A change in an actuarial or investment assumption that
931	931
932	932
933	933
934	934
935	935
936	936	SB2739 - 25 - LRB103 34580 RPS 64418 b
937	937
938	938
939	939	SB2739- 26 -LRB103 34580 RPS 64418 b SB2739 - 26 - LRB103 34580 RPS 64418 b
940	940	SB2739 - 26 - LRB103 34580 RPS 64418 b
941	941	1 increases or decreases the required State contribution and
942	942	2 first applied to the State contribution in fiscal year 2014,
943	943	3 2015, 2016, or 2017 shall be implemented:
944	944	4 (i) as already applied in State fiscal years before
945	945	5 2018; and
946	946	6 (ii) in the portion of the 5-year period beginning in
947	947	7 the State fiscal year in which the actuarial change first
948	948	8 applied that occurs in State fiscal year 2018 or
949	949	9 thereafter, by calculating the change in equal annual
950	950	10 amounts over that 5-year period and then implementing it
951	951	11 at the resulting annual rate in each of the remaining
952	952	12 fiscal years in that 5-year period.
953	953	13 For State fiscal years 1996 through 2005, the State
954	954	14 contribution to the System, as a percentage of the applicable
955	955	15 employee payroll, shall be increased in equal annual
956	956	16 increments so that by State fiscal year 2011, the State is
957	957	17 contributing at the rate required under this Section; except
958	958	18 that in the following specified State fiscal years, the State
959	959	19 contribution to the System shall not be less than the
960	960	20 following indicated percentages of the applicable employee
961	961	21 payroll, even if the indicated percentage will produce a State
962	962	22 contribution in excess of the amount otherwise required under
963	963	23 this subsection and subsection (a), and notwithstanding any
964	964	24 contrary certification made under subsection (a-1) before May
965	965	25 27, 1998 (the effective date of Public Act 90-582): 10.02% in
966	966	26 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
967	967
968	968
969	969
970	970
971	971
972	972	SB2739 - 26 - LRB103 34580 RPS 64418 b
973	973
974	974
975	975	SB2739- 27 -LRB103 34580 RPS 64418 b SB2739 - 27 - LRB103 34580 RPS 64418 b
976	976	SB2739 - 27 - LRB103 34580 RPS 64418 b
977	977	1 2002; 12.86% in FY 2003; and 13.56% in FY 2004.
978	978	2 Notwithstanding any other provision of this Article, the
979	979	3 total required State contribution for State fiscal year 2006
980	980	4 is $534,627,700.
981	981	5 Notwithstanding any other provision of this Article, the
982	982	6 total required State contribution for State fiscal year 2007
983	983	7 is $738,014,500.
984	984	8 For each of State fiscal years 2008 through 2009, the
985	985	9 State contribution to the System, as a percentage of the
986	986	10 applicable employee payroll, shall be increased in equal
987	987	11 annual increments from the required State contribution for
988	988	12 State fiscal year 2007, so that by State fiscal year 2011, the
989	989	13 State is contributing at the rate otherwise required under
990	990	14 this Section.
991	991	15 Notwithstanding any other provision of this Article, the
992	992	16 total required State contribution for State fiscal year 2010
993	993	17 is $2,089,268,000 and shall be made from the proceeds of bonds
994	994	18 sold in fiscal year 2010 pursuant to Section 7.2 of the General
995	995	19 Obligation Bond Act, less (i) the pro rata share of bond sale
996	996	20 expenses determined by the System's share of total bond
997	997	21 proceeds, (ii) any amounts received from the Common School
998	998	22 Fund in fiscal year 2010, and (iii) any reduction in bond
999	999	23 proceeds due to the issuance of discounted bonds, if
1000	1000	24 applicable.
1001	1001	25 Notwithstanding any other provision of this Article, the
1002	1002	26 total required State contribution for State fiscal year 2011
1003	1003
1004	1004
1005	1005
1006	1006
1007	1007
1008	1008	SB2739 - 27 - LRB103 34580 RPS 64418 b
1009	1009
1010	1010
1011	1011	SB2739- 28 -LRB103 34580 RPS 64418 b SB2739 - 28 - LRB103 34580 RPS 64418 b
1012	1012	SB2739 - 28 - LRB103 34580 RPS 64418 b
1013	1013	1 is the amount recertified by the System on or before April 1,
1014	1014	2 2011 pursuant to subsection (a-1) of this Section and shall be
1015	1015	3 made from the proceeds of bonds sold in fiscal year 2011
1016	1016	4 pursuant to Section 7.2 of the General Obligation Bond Act,
1017	1017	5 less (i) the pro rata share of bond sale expenses determined by
1018	1018	6 the System's share of total bond proceeds, (ii) any amounts
1019	1019	7 received from the Common School Fund in fiscal year 2011, and
1020	1020	8 (iii) any reduction in bond proceeds due to the issuance of
1021	1021	9 discounted bonds, if applicable. This amount shall include, in
1022	1022	10 addition to the amount certified by the System, an amount
1023	1023	11 necessary to meet employer contributions required by the State
1024	1024	12 as an employer under paragraph (e) of this Section, which may
1025	1025	13 also be used by the System for contributions required by
1026	1026	14 paragraph (a) of Section 16-127.
1027	1027	15 Beginning in State fiscal year 2046, the minimum State
1028	1028	16 contribution for each fiscal year shall be the amount needed
1029	1029	17 to maintain the total assets of the System at 90% of the total
1030	1030	18 actuarial liabilities of the System.
1031	1031	19 Amounts received by the System pursuant to Section 25 of
1032	1032	20 the Budget Stabilization Act or Section 8.12 of the State
1033	1033	21 Finance Act in any fiscal year do not reduce and do not
1034	1034	22 constitute payment of any portion of the minimum State
1035	1035	23 contribution required under this Article in that fiscal year.
1036	1036	24 Such amounts shall not reduce, and shall not be included in the
1037	1037	25 calculation of, the required State contributions under this
1038	1038	26 Article in any future year until the System has reached a
1039	1039
1040	1040
1041	1041
1042	1042
1043	1043
1044	1044	SB2739 - 28 - LRB103 34580 RPS 64418 b
1045	1045
1046	1046
1047	1047	SB2739- 29 -LRB103 34580 RPS 64418 b SB2739 - 29 - LRB103 34580 RPS 64418 b
1048	1048	SB2739 - 29 - LRB103 34580 RPS 64418 b
1049	1049	1 funding ratio of at least 90%. A reference in this Article to
1050	1050	2 the "required State contribution" or any substantially similar
1051	1051	3 term does not include or apply to any amounts payable to the
1052	1052	4 System under Section 25 of the Budget Stabilization Act.
1053	1053	5 Notwithstanding any other provision of this Section, the
1054	1054	6 required State contribution for State fiscal year 2005 and for
1055	1055	7 fiscal year 2008 and each fiscal year thereafter, as
1056	1056	8 calculated under this Section and certified under subsection
1057	1057	9 (a-1), shall not exceed an amount equal to (i) the amount of
1058	1058	10 the required State contribution that would have been
1059	1059	11 calculated under this Section for that fiscal year if the
1060	1060	12 System had not received any payments under subsection (d) of
1061	1061	13 Section 7.2 of the General Obligation Bond Act, minus (ii) the
1062	1062	14 portion of the State's total debt service payments for that
1063	1063	15 fiscal year on the bonds issued in fiscal year 2003 for the
1064	1064	16 purposes of that Section 7.2, as determined and certified by
1065	1065	17 the Comptroller, that is the same as the System's portion of
1066	1066	18 the total moneys distributed under subsection (d) of Section
1067	1067	19 7.2 of the General Obligation Bond Act. In determining this
1068	1068	20 maximum for State fiscal years 2008 through 2010, however, the
1069	1069	21 amount referred to in item (i) shall be increased, as a
1070	1070	22 percentage of the applicable employee payroll, in equal
1071	1071	23 increments calculated from the sum of the required State
1072	1072	24 contribution for State fiscal year 2007 plus the applicable
1073	1073	25 portion of the State's total debt service payments for fiscal
1074	1074	26 year 2007 on the bonds issued in fiscal year 2003 for the
1075	1075
1076	1076
1077	1077
1078	1078
1079	1079
1080	1080	SB2739 - 29 - LRB103 34580 RPS 64418 b
1081	1081
1082	1082
1083	1083	SB2739- 30 -LRB103 34580 RPS 64418 b SB2739 - 30 - LRB103 34580 RPS 64418 b
1084	1084	SB2739 - 30 - LRB103 34580 RPS 64418 b
1085	1085	1 purposes of Section 7.2 of the General Obligation Bond Act, so
1086	1086	2 that, by State fiscal year 2011, the State is contributing at
1087	1087	3 the rate otherwise required under this Section.
1088	1088	4 (b-4) Beginning in fiscal year 2018, each employer under
1089	1089	5 this Article shall pay to the System a required contribution
1090	1090	6 determined as a percentage of projected payroll and sufficient
1091	1091	7 to produce an annual amount equal to:
1092	1092	8 (i) for each of fiscal years 2018, 2019, and 2020, the
1093	1093	9 defined benefit normal cost of the defined benefit plan,
1094	1094	10 less the employee contribution, for each employee of that
1095	1095	11 employer who has elected or who is deemed to have elected
1096	1096	12 the benefits under Section 1-161 or who has made the
1097	1097	13 election under subsection (b) of Section 1-161; for fiscal
1098	1098	14 year 2021 and each fiscal year thereafter, the defined
1099	1099	15 benefit normal cost of the defined benefit plan, less the
1100	1100	16 employee contribution, plus 2%, for each employee of that
1101	1101	17 employer who has elected or who is deemed to have elected
1102	1102	18 the benefits under Section 1-161 or who has made the
1103	1103	19 election under subsection (b) of Section 1-161; plus
1104	1104	20 (ii) the amount required for that fiscal year to
1105	1105	21 amortize any unfunded actuarial accrued liability
1106	1106	22 associated with the present value of liabilities
1107	1107	23 attributable to the employer's account under Section
1108	1108	24 16-158.3, determined as a level percentage of payroll over
1109	1109	25 a 30-year rolling amortization period.
1110	1110	26 In determining contributions required under item (i) of
1111	1111
1112	1112
1113	1113
1114	1114
1115	1115
1116	1116	SB2739 - 30 - LRB103 34580 RPS 64418 b
1117	1117
1118	1118
1119	1119	SB2739- 31 -LRB103 34580 RPS 64418 b SB2739 - 31 - LRB103 34580 RPS 64418 b
1120	1120	SB2739 - 31 - LRB103 34580 RPS 64418 b
1121	1121	1 this subsection, the System shall determine an aggregate rate
1122	1122	2 for all employers, expressed as a percentage of projected
1123	1123	3 payroll.
1124	1124	4 In determining the contributions required under item (ii)
1125	1125	5 of this subsection, the amount shall be computed by the System
1126	1126	6 on the basis of the actuarial assumptions and tables used in
1127	1127	7 the most recent actuarial valuation of the System that is
1128	1128	8 available at the time of the computation.
1129	1129	9 The contributions required under this subsection (b-4)
1130	1130	10 shall be paid by an employer concurrently with that employer's
1131	1131	11 payroll payment period. The State, as the actual employer of
1132	1132	12 an employee, shall make the required contributions under this
1133	1133	13 subsection.
1134	1134	14 (c) Payment of the required State contributions and of all
1135	1135	15 pensions, retirement annuities, death benefits, refunds, and
1136	1136	16 other benefits granted under or assumed by this System, and
1137	1137	17 all expenses in connection with the administration and
1138	1138	18 operation thereof, are obligations of the State.
1139	1139	19 If members are paid from special trust or federal funds
1140	1140	20 which are administered by the employing unit, whether school
1141	1141	21 district or other unit, the employing unit shall pay to the
1142	1142	22 System from such funds the full accruing retirement costs
1143	1143	23 based upon that service, which, beginning July 1, 2017, shall
1144	1144	24 be at a rate, expressed as a percentage of salary, equal to the
1145	1145	25 total employer's normal cost, expressed as a percentage of
1146	1146	26 payroll, as determined by the System. Employer contributions,
1147	1147
1148	1148
1149	1149
1150	1150
1151	1151
1152	1152	SB2739 - 31 - LRB103 34580 RPS 64418 b
1153	1153
1154	1154
1155	1155	SB2739- 32 -LRB103 34580 RPS 64418 b SB2739 - 32 - LRB103 34580 RPS 64418 b
1156	1156	SB2739 - 32 - LRB103 34580 RPS 64418 b
1157	1157	1 based on salary paid to members from federal funds, may be
1158	1158	2 forwarded by the distributing agency of the State of Illinois
1159	1159	3 to the System prior to allocation, in an amount determined in
1160	1160	4 accordance with guidelines established by such agency and the
1161	1161	5 System. Any contribution for fiscal year 2015 collected as a
1162	1162	6 result of the change made by Public Act 98-674 shall be
1163	1163	7 considered a State contribution under subsection (b-3) of this
1164	1164	8 Section.
1165	1165	9 (d) Effective July 1, 1986, any employer of a teacher as
1166	1166	10 defined in paragraph (8) of Section 16-106 shall pay the
1167	1167	11 employer's normal cost of benefits based upon the teacher's
1168	1168	12 service, in addition to employee contributions, as determined
1169	1169	13 by the System. Such employer contributions shall be forwarded
1170	1170	14 monthly in accordance with guidelines established by the
1171	1171	15 System.
1172	1172	16 However, with respect to benefits granted under Section
1173	1173	17 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
1174	1174	18 of Section 16-106, the employer's contribution shall be 12%
1175	1175	19 (rather than 20%) of the member's highest annual salary rate
1176	1176	20 for each year of creditable service granted, and the employer
1177	1177	21 shall also pay the required employee contribution on behalf of
1178	1178	22 the teacher. For the purposes of Sections 16-133.4 and
1179	1179	23 16-133.5, a teacher as defined in paragraph (8) of Section
1180	1180	24 16-106 who is serving in that capacity while on leave of
1181	1181	25 absence from another employer under this Article shall not be
1182	1182	26 considered an employee of the employer from which the teacher
1183	1183
1184	1184
1185	1185
1186	1186
1187	1187
1188	1188	SB2739 - 32 - LRB103 34580 RPS 64418 b
1189	1189
1190	1190
1191	1191	SB2739- 33 -LRB103 34580 RPS 64418 b SB2739 - 33 - LRB103 34580 RPS 64418 b
1192	1192	SB2739 - 33 - LRB103 34580 RPS 64418 b
1193	1193	1 is on leave.
1194	1194	2 (e) Beginning July 1, 1998, every employer of a teacher
1195	1195	3 shall pay to the System an employer contribution computed as
1196	1196	4 follows:
1197	1197	5 (1) Beginning July 1, 1998 through June 30, 1999, the
1198	1198	6 employer contribution shall be equal to 0.3% of each
1199	1199	7 teacher's salary.
1200	1200	8 (2) Beginning July 1, 1999 and thereafter, the
1201	1201	9 employer contribution shall be equal to 0.58% of each
1202	1202	10 teacher's salary.
1203	1203	11 The school district or other employing unit may pay these
1204	1204	12 employer contributions out of any source of funding available
1205	1205	13 for that purpose and shall forward the contributions to the
1206	1206	14 System on the schedule established for the payment of member
1207	1207	15 contributions.
1208	1208	16 These employer contributions are intended to offset a
1209	1209	17 portion of the cost to the System of the increases in
1210	1210	18 retirement benefits resulting from Public Act 90-582.
1211	1211	19 Each employer of teachers is entitled to a credit against
1212	1212	20 the contributions required under this subsection (e) with
1213	1213	21 respect to salaries paid to teachers for the period January 1,
1214	1214	22 2002 through June 30, 2003, equal to the amount paid by that
1215	1215	23 employer under subsection (a-5) of Section 6.6 of the State
1216	1216	24 Employees Group Insurance Act of 1971 with respect to salaries
1217	1217	25 paid to teachers for that period.
1218	1218	26 The additional 1% employee contribution required under
1219	1219
1220	1220
1221	1221
1222	1222
1223	1223
1224	1224	SB2739 - 33 - LRB103 34580 RPS 64418 b
1225	1225
1226	1226
1227	1227	SB2739- 34 -LRB103 34580 RPS 64418 b SB2739 - 34 - LRB103 34580 RPS 64418 b
1228	1228	SB2739 - 34 - LRB103 34580 RPS 64418 b
1229	1229	1 Section 16-152 by Public Act 90-582 is the responsibility of
1230	1230	2 the teacher and not the teacher's employer, unless the
1231	1231	3 employer agrees, through collective bargaining or otherwise,
1232	1232	4 to make the contribution on behalf of the teacher.
1233	1233	5 If an employer is required by a contract in effect on May
1234	1234	6 1, 1998 between the employer and an employee organization to
1235	1235	7 pay, on behalf of all its full-time employees covered by this
1236	1236	8 Article, all mandatory employee contributions required under
1237	1237	9 this Article, then the employer shall be excused from paying
1238	1238	10 the employer contribution required under this subsection (e)
1239	1239	11 for the balance of the term of that contract. The employer and
1240	1240	12 the employee organization shall jointly certify to the System
1241	1241	13 the existence of the contractual requirement, in such form as
1242	1242	14 the System may prescribe. This exclusion shall cease upon the
1243	1243	15 termination, extension, or renewal of the contract at any time
1244	1244	16 after May 1, 1998.
1245	1245	17 (f) If the amount of a teacher's salary for any school year
1246	1246	18 used to determine final average salary exceeds the member's
1247	1247	19 annual full-time salary rate with the same employer for the
1248	1248	20 previous school year by more than 6%, the teacher's employer
1249	1249	21 shall pay to the System, in addition to all other payments
1250	1250	22 required under this Section and in accordance with guidelines
1251	1251	23 established by the System, the present value of the increase
1252	1252	24 in benefits resulting from the portion of the increase in
1253	1253	25 salary that is in excess of 6%. This present value shall be
1254	1254	26 computed by the System on the basis of the actuarial
1255	1255
1256	1256
1257	1257
1258	1258
1259	1259
1260	1260	SB2739 - 34 - LRB103 34580 RPS 64418 b
1261	1261
1262	1262
1263	1263	SB2739- 35 -LRB103 34580 RPS 64418 b SB2739 - 35 - LRB103 34580 RPS 64418 b
1264	1264	SB2739 - 35 - LRB103 34580 RPS 64418 b
1265	1265	1 assumptions and tables used in the most recent actuarial
1266	1266	2 valuation of the System that is available at the time of the
1267	1267	3 computation. If a teacher's salary for the 2005-2006 school
1268	1268	4 year is used to determine final average salary under this
1269	1269	5 subsection (f), then the changes made to this subsection (f)
1270	1270	6 by Public Act 94-1057 shall apply in calculating whether the
1271	1271	7 increase in his or her salary is in excess of 6%. For the
1272	1272	8 purposes of this Section, change in employment under Section
1273	1273	9 10-21.12 of the School Code on or after June 1, 2005 shall
1274	1274	10 constitute a change in employer. The System may require the
1275	1275	11 employer to provide any pertinent information or
1276	1276	12 documentation. The changes made to this subsection (f) by
1277	1277	13 Public Act 94-1111 apply without regard to whether the teacher
1278	1278	14 was in service on or after its effective date.
1279	1279	15 Whenever it determines that a payment is or may be
1280	1280	16 required under this subsection, the System shall calculate the
1281	1281	17 amount of the payment and bill the employer for that amount.
1282	1282	18 The bill shall specify the calculations used to determine the
1283	1283	19 amount due. If the employer disputes the amount of the bill, it
1284	1284	20 may, within 30 days after receipt of the bill, apply to the
1285	1285	21 System in writing for a recalculation. The application must
1286	1286	22 specify in detail the grounds of the dispute and, if the
1287	1287	23 employer asserts that the calculation is subject to subsection
1288	1288	24 (g), (g-5), (g-10), (g-15), or (h) of this Section, must
1289	1289	25 include an affidavit setting forth and attesting to all facts
1290	1290	26 within the employer's knowledge that are pertinent to the
1291	1291
1292	1292
1293	1293
1294	1294
1295	1295
1296	1296	SB2739 - 35 - LRB103 34580 RPS 64418 b
1297	1297
1298	1298
1299	1299	SB2739- 36 -LRB103 34580 RPS 64418 b SB2739 - 36 - LRB103 34580 RPS 64418 b
1300	1300	SB2739 - 36 - LRB103 34580 RPS 64418 b
1301	1301	1 applicability of that subsection. Upon receiving a timely
1302	1302	2 application for recalculation, the System shall review the
1303	1303	3 application and, if appropriate, recalculate the amount due.
1304	1304	4 The employer contributions required under this subsection
1305	1305	5 (f) may be paid in the form of a lump sum within 90 days after
1306	1306	6 receipt of the bill. If the employer contributions are not
1307	1307	7 paid within 90 days after receipt of the bill, then interest
1308	1308	8 will be charged at a rate equal to the System's annual
1309	1309	9 actuarially assumed rate of return on investment compounded
1310	1310	10 annually from the 91st day after receipt of the bill. Payments
1311	1311	11 must be concluded within 3 years after the employer's receipt
1312	1312	12 of the bill.
1313	1313	13 (f-1) (Blank).
1314	1314	14 (g) This subsection (g) applies only to payments made or
1315	1315	15 salary increases given on or after June 1, 2005 but before July
1316	1316	16 1, 2011. The changes made by Public Act 94-1057 shall not
1317	1317	17 require the System to refund any payments received before July
1318	1318	18 31, 2006 (the effective date of Public Act 94-1057).
1319	1319	19 When assessing payment for any amount due under subsection
1320	1320	20 (f), the System shall exclude salary increases paid to
1321	1321	21 teachers under contracts or collective bargaining agreements
1322	1322	22 entered into, amended, or renewed before June 1, 2005.
1323	1323	23 When assessing payment for any amount due under subsection
1324	1324	24 (f), the System shall exclude salary increases paid to a
1325	1325	25 teacher at a time when the teacher is 10 or more years from
1326	1326	26 retirement eligibility under Section 16-132 or 16-133.2.
1327	1327
1328	1328
1329	1329
1330	1330
1331	1331
1332	1332	SB2739 - 36 - LRB103 34580 RPS 64418 b
1333	1333
1334	1334
1335	1335	SB2739- 37 -LRB103 34580 RPS 64418 b SB2739 - 37 - LRB103 34580 RPS 64418 b
1336	1336	SB2739 - 37 - LRB103 34580 RPS 64418 b
1337	1337	1 When assessing payment for any amount due under subsection
1338	1338	2 (f), the System shall exclude salary increases resulting from
1339	1339	3 overload work, including summer school, when the school
1340	1340	4 district has certified to the System, and the System has
1341	1341	5 approved the certification, that (i) the overload work is for
1342	1342	6 the sole purpose of classroom instruction in excess of the
1343	1343	7 standard number of classes for a full-time teacher in a school
1344	1344	8 district during a school year and (ii) the salary increases
1345	1345	9 are equal to or less than the rate of pay for classroom
1346	1346	10 instruction computed on the teacher's current salary and work
1347	1347	11 schedule.
1348	1348	12 When assessing payment for any amount due under subsection
1349	1349	13 (f), the System shall exclude a salary increase resulting from
1350	1350	14 a promotion (i) for which the employee is required to hold a
1351	1351	15 certificate or supervisory endorsement issued by the State
1352	1352	16 Teacher Certification Board that is a different certification
1353	1353	17 or supervisory endorsement than is required for the teacher's
1354	1354	18 previous position and (ii) to a position that has existed and
1355	1355	19 been filled by a member for no less than one complete academic
1356	1356	20 year and the salary increase from the promotion is an increase
1357	1357	21 that results in an amount no greater than the lesser of the
1358	1358	22 average salary paid for other similar positions in the
1359	1359	23 district requiring the same certification or the amount
1360	1360	24 stipulated in the collective bargaining agreement for a
1361	1361	25 similar position requiring the same certification.
1362	1362	26 When assessing payment for any amount due under subsection
1363	1363
1364	1364
1365	1365
1366	1366
1367	1367
1368	1368	SB2739 - 37 - LRB103 34580 RPS 64418 b
1369	1369
1370	1370
1371	1371	SB2739- 38 -LRB103 34580 RPS 64418 b SB2739 - 38 - LRB103 34580 RPS 64418 b
1372	1372	SB2739 - 38 - LRB103 34580 RPS 64418 b
1373	1373	1 (f), the System shall exclude any payment to the teacher from
1374	1374	2 the State of Illinois or the State Board of Education over
1375	1375	3 which the employer does not have discretion, notwithstanding
1376	1376	4 that the payment is included in the computation of final
1377	1377	5 average salary.
1378	1378	6 (g-5) When assessing payment for any amount due under
1379	1379	7 subsection (f), the System shall exclude salary increases
1380	1380	8 resulting from overload or stipend work performed in a school
1381	1381	9 year subsequent to a school year in which the employer was
1382	1382	10 unable to offer or allow to be conducted overload or stipend
1383	1383	11 work due to an emergency declaration limiting such activities.
1384	1384	12 (g-10) When assessing payment for any amount due under
1385	1385	13 subsection (f), the System shall exclude salary increases
1386	1386	14 resulting from increased instructional time that exceeded the
1387	1387	15 instructional time required during the 2019-2020 school year.
1388	1388	16 (g-15) When assessing payment for any amount due under
1389	1389	17 subsection (f), the System shall exclude salary increases
1390	1390	18 resulting from teaching summer school on or after May 1, 2021
1391	1391	19 and before September 15, 2022.
1392	1392	20 (h) When assessing payment for any amount due under
1393	1393	21 subsection (f), the System shall exclude any salary increase
1394	1394	22 described in subsection (g) of this Section given on or after
1395	1395	23 July 1, 2011 but before July 1, 2014 under a contract or
1396	1396	24 collective bargaining agreement entered into, amended, or
1397	1397	25 renewed on or after June 1, 2005 but before July 1, 2011.
1398	1398	26 Notwithstanding any other provision of this Section, any
1399	1399
1400	1400
1401	1401
1402	1402
1403	1403
1404	1404	SB2739 - 38 - LRB103 34580 RPS 64418 b
1405	1405
1406	1406
1407	1407	SB2739- 39 -LRB103 34580 RPS 64418 b SB2739 - 39 - LRB103 34580 RPS 64418 b
1408	1408	SB2739 - 39 - LRB103 34580 RPS 64418 b
1409	1409	1 payments made or salary increases given after June 30, 2014
1410	1410	2 shall be used in assessing payment for any amount due under
1411	1411	3 subsection (f) of this Section.
1412	1412	4 (i) The System shall prepare a report and file copies of
1413	1413	5 the report with the Governor and the General Assembly by
1414	1414	6 January 1, 2007 that contains all of the following
1415	1415	7 information:
1416	1416	8 (1) The number of recalculations required by the
1417	1417	9 changes made to this Section by Public Act 94-1057 for
1418	1418	10 each employer.
1419	1419	11 (2) The dollar amount by which each employer's
1420	1420	12 contribution to the System was changed due to
1421	1421	13 recalculations required by Public Act 94-1057.
1422	1422	14 (3) The total amount the System received from each
1423	1423	15 employer as a result of the changes made to this Section by
1424	1424	16 Public Act 94-4.
1425	1425	17 (4) The increase in the required State contribution
1426	1426	18 resulting from the changes made to this Section by Public
1427	1427	19 Act 94-1057.
1428	1428	20 (i-5) For school years beginning on or after July 1, 2017,
1429	1429	21 if the amount of a participant's salary for any school year
1430	1430	22 exceeds the amount of the salary set for the Governor, the
1431	1431	23 participant's employer shall pay to the System, in addition to
1432	1432	24 all other payments required under this Section and in
1433	1433	25 accordance with guidelines established by the System, an
1434	1434	26 amount determined by the System to be equal to the employer
1435	1435
1436	1436
1437	1437
1438	1438
1439	1439
1440	1440	SB2739 - 39 - LRB103 34580 RPS 64418 b
1441	1441
1442	1442
1443	1443	SB2739- 40 -LRB103 34580 RPS 64418 b SB2739 - 40 - LRB103 34580 RPS 64418 b
1444	1444	SB2739 - 40 - LRB103 34580 RPS 64418 b
1445	1445	1 normal cost, as established by the System and expressed as a
1446	1446	2 total percentage of payroll, multiplied by the amount of
1447	1447	3 salary in excess of the amount of the salary set for the
1448	1448	4 Governor. This amount shall be computed by the System on the
1449	1449	5 basis of the actuarial assumptions and tables used in the most
1450	1450	6 recent actuarial valuation of the System that is available at
1451	1451	7 the time of the computation. The System may require the
1452	1452	8 employer to provide any pertinent information or
1453	1453	9 documentation.
1454	1454	10 Whenever it determines that a payment is or may be
1455	1455	11 required under this subsection, the System shall calculate the
1456	1456	12 amount of the payment and bill the employer for that amount.
1457	1457	13 The bill shall specify the calculations used to determine the
1458	1458	14 amount due. If the employer disputes the amount of the bill, it
1459	1459	15 may, within 30 days after receipt of the bill, apply to the
1460	1460	16 System in writing for a recalculation. The application must
1461	1461	17 specify in detail the grounds of the dispute. Upon receiving a
1462	1462	18 timely application for recalculation, the System shall review
1463	1463	19 the application and, if appropriate, recalculate the amount
1464	1464	20 due.
1465	1465	21 The employer contributions required under this subsection
1466	1466	22 may be paid in the form of a lump sum within 90 days after
1467	1467	23 receipt of the bill. If the employer contributions are not
1468	1468	24 paid within 90 days after receipt of the bill, then interest
1469	1469	25 will be charged at a rate equal to the System's annual
1470	1470	26 actuarially assumed rate of return on investment compounded
1471	1471
1472	1472
1473	1473
1474	1474
1475	1475
1476	1476	SB2739 - 40 - LRB103 34580 RPS 64418 b
1477	1477
1478	1478
1479	1479	SB2739- 41 -LRB103 34580 RPS 64418 b SB2739 - 41 - LRB103 34580 RPS 64418 b
1480	1480	SB2739 - 41 - LRB103 34580 RPS 64418 b
1481	1481	1 annually from the 91st day after receipt of the bill. Payments
1482	1482	2 must be concluded within 3 years after the employer's receipt
1483	1483	3 of the bill.
1484	1484	4 (j) For purposes of determining the required State
1485	1485	5 contribution to the System, the value of the System's assets
1486	1486	6 shall be equal to the actuarial value of the System's assets,
1487	1487	7 which shall be calculated as follows:
1488	1488	8 As of June 30, 2008, the actuarial value of the System's
1489	1489	9 assets shall be equal to the market value of the assets as of
1490	1490	10 that date. In determining the actuarial value of the System's
1491	1491	11 assets for fiscal years after June 30, 2008, any actuarial
1492	1492	12 gains or losses from investment return incurred in a fiscal
1493	1493	13 year shall be recognized in equal annual amounts over the
1494	1494	14 5-year period following that fiscal year.
1495	1495	15 (k) For purposes of determining the required State
1496	1496	16 contribution to the system for a particular year, the
1497	1497	17 actuarial value of assets shall be assumed to earn a rate of
1498	1498	18 return equal to the system's actuarially assumed rate of
1499	1499	19 return.
1500	1500	20 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
1501	1501	21 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff.
1502	1502	22 8-20-21; 102-813, eff. 5-13-22.)
1503	1503	23 (40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140)
1504	1504	24 Sec. 18-140. To certify required State contributions and
1505	1505	25 submit vouchers.
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510
1511	1511	SB2739 - 41 - LRB103 34580 RPS 64418 b
1512	1512
1513	1513
1514	1514	SB2739- 42 -LRB103 34580 RPS 64418 b SB2739 - 42 - LRB103 34580 RPS 64418 b
1515	1515	SB2739 - 42 - LRB103 34580 RPS 64418 b
1516	1516	1 (a) The Board shall certify to the Governor, on or before
1517	1517	2 November 15 of each year until November 15, 2011, the amount of
1518	1518	3 the required State contribution to the System for the
1519	1519	4 following fiscal year and shall specifically identify the
1520	1520	5 System's projected State normal cost for that fiscal year. The
1521	1521	6 certification shall include a copy of the actuarial
1522	1522	7 recommendations upon which it is based and shall specifically
1523	1523	8 identify the System's projected State normal cost for that
1524	1524	9 fiscal year.
1525	1525	10 On or before November 1 of each year, beginning November
1526	1526	11 1, 2012, the Board shall submit to the State Actuary, the
1527	1527	12 Governor, and the General Assembly a proposed certification of
1528	1528	13 the amount of the required State contribution to the System
1529	1529	14 for the next fiscal year, along with all of the actuarial
1530	1530	15 assumptions, calculations, and data upon which that proposed
1531	1531	16 certification is based. On or before January 1 of each year
1532	1532	17 beginning January 1, 2013, the State Actuary shall issue a
1533	1533	18 preliminary report concerning the proposed certification and
1534	1534	19 identifying, if necessary, recommended changes in actuarial
1535	1535	20 assumptions that the Board must consider before finalizing its
1536	1536	21 certification of the required State contributions. On or
1537	1537	22 before January 15, 2013 and every January 15 thereafter, the
1538	1538	23 Board shall certify to the Governor and the General Assembly
1539	1539	24 the amount of the required State contribution for the next
1540	1540	25 fiscal year. The Board's certification must note any
1541	1541	26 deviations from the State Actuary's recommended changes, the
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546
1547	1547	SB2739 - 42 - LRB103 34580 RPS 64418 b
1548	1548
1549	1549
1550	1550	SB2739- 43 -LRB103 34580 RPS 64418 b SB2739 - 43 - LRB103 34580 RPS 64418 b
1551	1551	SB2739 - 43 - LRB103 34580 RPS 64418 b
1552	1552	1 reason or reasons for not following the State Actuary's
1553	1553	2 recommended changes, and the fiscal impact of not following
1554	1554	3 the State Actuary's recommended changes on the required State
1555	1555	4 contribution.
1556	1556	5 On or before May 1, 2004, the Board shall recalculate and
1557	1557	6 recertify to the Governor the amount of the required State
1558	1558	7 contribution to the System for State fiscal year 2005, taking
1559	1559	8 into account the amounts appropriated to and received by the
1560	1560	9 System under subsection (d) of Section 7.2 of the General
1561	1561	10 Obligation Bond Act.
1562	1562	11 On or before July 1, 2005, the Board shall recalculate and
1563	1563	12 recertify to the Governor the amount of the required State
1564	1564	13 contribution to the System for State fiscal year 2006, taking
1565	1565	14 into account the changes in required State contributions made
1566	1566	15 by this amendatory Act of the 94th General Assembly.
1567	1567	16 On or before April 1, 2011, the Board shall recalculate
1568	1568	17 and recertify to the Governor the amount of the required State
1569	1569	18 contribution to the System for State fiscal year 2011,
1570	1570	19 applying the changes made by Public Act 96-889 to the System's
1571	1571	20 assets and liabilities as of June 30, 2009 as though Public Act
1572	1572	21 96-889 was approved on that date.
1573	1573	22 By November 1, 2017, the Board shall recalculate and
1574	1574	23 recertify to the State Actuary, the Governor, and the General
1575	1575	24 Assembly the amount of the State contribution to the System
1576	1576	25 for State fiscal year 2018, taking into account the changes in
1577	1577	26 required State contributions made by this amendatory Act of
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582
1583	1583	SB2739 - 43 - LRB103 34580 RPS 64418 b
1584	1584
1585	1585
1586	1586	SB2739- 44 -LRB103 34580 RPS 64418 b SB2739 - 44 - LRB103 34580 RPS 64418 b
1587	1587	SB2739 - 44 - LRB103 34580 RPS 64418 b
1588	1588	1 the 100th General Assembly. The State Actuary shall review the
1589	1589	2 assumptions and valuations underlying the Board's revised
1590	1590	3 certification and issue a preliminary report concerning the
1591	1591	4 proposed recertification and identifying, if necessary,
1592	1592	5 recommended changes in actuarial assumptions that the Board
1593	1593	6 must consider before finalizing its certification of the
1594	1594	7 required State contributions. The Board's final certification
1595	1595	8 must note any deviations from the State Actuary's recommended
1596	1596	9 changes, the reason or reasons for not following the State
1597	1597	10 Actuary's recommended changes, and the fiscal impact of not
1598	1598	11 following the State Actuary's recommended changes on the
1599	1599	12 required State contribution.
1600	1600	13 (b) Unless otherwise directed by the Comptroller under
1601	1601	14 subsection (b-1), Beginning in State fiscal year 1996, on or
1602	1602	15 as soon as possible after the 15th day of each month the Board
1603	1603	16 shall submit vouchers for payment of State contributions to
1604	1604	17 the System for the applicable month on the 15th day of each
1605	1605	18 month, or as soon thereafter as may be practicable. The amount
1606	1606	19 vouchered for a monthly payment shall total , in a total
1607	1607	20 monthly amount of one-twelfth of the required annual State
1608	1608	21 contribution certified under subsection (a).
1609	1609	22 (b-1) Beginning in State fiscal year 2025, if the
1610	1610	23 Comptroller requests that the Board submit, during a State
1611	1611	24 fiscal year, vouchers for multiple monthly payments for the
1612	1612	25 advance payment of State contributions due to the System for
1613	1613	26 that State fiscal year, then the Board shall submit those
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618
1619	1619	SB2739 - 44 - LRB103 34580 RPS 64418 b
1620	1620
1621	1621
1622	1622	SB2739- 45 -LRB103 34580 RPS 64418 b SB2739 - 45 - LRB103 34580 RPS 64418 b
1623	1623	SB2739 - 45 - LRB103 34580 RPS 64418 b
1624	1624	1 additional vouchers as directed by the Comptroller,
1625	1625	2 notwithstanding subsection (b). Unless an act of
1626	1626	3 appropriations provides otherwise, nothing in this Section
1627	1627	4 authorizes the Board to submit, in a State fiscal year,
1628	1628	5 vouchers for the payment of State contributions to the System
1629	1629	6 in an amount that exceeds the rate of payroll that is certified
1630	1630	7 by the System under this Section for that State fiscal year.
1631	1631	8 From the effective date of this amendatory Act of the 93rd
1632	1632	9 General Assembly through June 30, 2004, the Board shall not
1633	1633	10 submit vouchers for the remainder of fiscal year 2004 in
1634	1634	11 excess of the fiscal year 2004 certified contribution amount
1635	1635	12 determined under this Section after taking into consideration
1636	1636	13 the transfer to the System under subsection (c) of Section
1637	1637	14 6z-61 of the State Finance Act.
1638	1638	15 (b-2) The These vouchers described in subsections (b) and
1639	1639	16 (b-1) shall be paid by the State Comptroller and Treasurer by
1640	1640	17 warrants drawn on the funds appropriated to the System for
1641	1641	18 that fiscal year.
1642	1642	19 If in any month the amount remaining unexpended from all
1643	1643	20 other appropriations to the System for the applicable fiscal
1644	1644	21 year (including the appropriations to the System under Section
1645	1645	22 8.12 of the State Finance Act and Section 1 of the State
1646	1646	23 Pension Funds Continuing Appropriation Act) is less than the
1647	1647	24 amount lawfully vouchered under this Section, the difference
1648	1648	25 shall be paid from the General Revenue Fund under the
1649	1649	26 continuing appropriation authority provided in Section 1.1 of
1650	1650
1651	1651
1652	1652
1653	1653
1654	1654
1655	1655	SB2739 - 45 - LRB103 34580 RPS 64418 b
1656	1656
1657	1657
1658	1658	SB2739- 46 -LRB103 34580 RPS 64418 b SB2739 - 46 - LRB103 34580 RPS 64418 b
1659	1659	SB2739 - 46 - LRB103 34580 RPS 64418 b
1660	1660	1 the State Pension Funds Continuing Appropriation Act.
1661	1661	2 (Source: P.A. 100-23, eff. 7-6-17.)
1662	1662
1663	1663
1664	1664
1665	1665
1666	1666
1667	1667	SB2739 - 46 - LRB103 34580 RPS 64418 b