Illinois Senate Bill SB2739 Latest Draft

                            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
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
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.
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    LRB103 34580 RPS 64418 b
A BILL FOR
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  SB2739  LRB103 34580 RPS 64418 b
1  AN ACT concerning public employee benefits.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Pension Code is amended by
5  changing Sections 2-134, 14-131, 15-165, 16-158, and 18-140 as
6  follows:
7  (40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
8  Sec. 2-134. To certify required State contributions and
9  submit vouchers.
10  (a) The Board shall certify to the Governor on or before
11  December 15 of each year until December 15, 2011 the amount of
12  the required State contribution to the System for the next
13  fiscal year and shall specifically identify the System's
14  projected State normal cost for that fiscal year. The
15  certification shall include a copy of the actuarial
16  recommendations upon which it is based and shall specifically
17  identify the System's projected State normal cost for that
18  fiscal year.
19  On or before November 1 of each year, beginning November
20  1, 2012, the Board shall submit to the State Actuary, the
21  Governor, and the General Assembly a proposed certification of
22  the amount of the required State contribution to the System
23  for the next fiscal year, along with all of the actuarial

 

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
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.
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    LRB103 34580 RPS 64418 b
A BILL FOR

 

 

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



    LRB103 34580 RPS 64418 b

 

 



 

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1  assumptions, calculations, and data upon which that proposed
2  certification is based. On or before January 1 of each year
3  beginning January 1, 2013, the State Actuary shall issue a
4  preliminary report concerning the proposed certification and
5  identifying, if necessary, recommended changes in actuarial
6  assumptions that the Board must consider before finalizing its
7  certification of the required State contributions. On or
8  before January 15, 2013 and every January 15 thereafter, the
9  Board shall certify to the Governor and the General Assembly
10  the amount of the required State contribution for the next
11  fiscal year. The Board's certification must note any
12  deviations from the State Actuary's recommended changes, the
13  reason or reasons for not following the State Actuary's
14  recommended changes, and the fiscal impact of not following
15  the State Actuary's recommended changes on the required State
16  contribution.
17  On or before May 1, 2004, the Board shall recalculate and
18  recertify to the Governor the amount of the required State
19  contribution to the System for State fiscal year 2005, taking
20  into account the amounts appropriated to and received by the
21  System under subsection (d) of Section 7.2 of the General
22  Obligation Bond Act.
23  On or before July 1, 2005, the Board shall recalculate and
24  recertify to the Governor the amount of the required State
25  contribution to the System for State fiscal year 2006, taking
26  into account the changes in required State contributions made

 

 

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1  by this amendatory Act of the 94th General Assembly.
2  On or before April 1, 2011, the Board shall recalculate
3  and recertify to the Governor the amount of the required State
4  contribution to the System for State fiscal year 2011,
5  applying the changes made by Public Act 96-889 to the System's
6  assets and liabilities as of June 30, 2009 as though Public Act
7  96-889 was approved on that date.
8  By November 1, 2017, the Board shall recalculate and
9  recertify to the State Actuary, the Governor, and the General
10  Assembly the amount of the State contribution to the System
11  for State fiscal year 2018, taking into account the changes in
12  required State contributions made by this amendatory Act of
13  the 100th General Assembly. The State Actuary shall review the
14  assumptions and valuations underlying the Board's revised
15  certification and issue a preliminary report concerning the
16  proposed recertification and identifying, if necessary,
17  recommended changes in actuarial assumptions that the Board
18  must consider before finalizing its certification of the
19  required State contributions. The Board's final certification
20  must note any deviations from the State Actuary's recommended
21  changes, the reason or reasons for not following the State
22  Actuary's recommended changes, and the fiscal impact of not
23  following the State Actuary's recommended changes on the
24  required State contribution.
25  (b) Unless otherwise directed by the Comptroller under
26  subsection (b-1), Beginning in State fiscal year 1996, on or

 

 

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1  as soon as possible after the 15th day of each month the Board
2  shall submit vouchers for payment of State contributions to
3  the System for the applicable month on the 15th day of each
4  month, or as soon thereafter as may be practicable. The amount
5  vouchered for a monthly payment shall total , in a total
6  monthly amount of one-twelfth of the required annual State
7  contribution certified under subsection (a).
8  (b-1) Beginning in State fiscal year 2025, if the
9  Comptroller requests that the Board submit, during a State
10  fiscal year, vouchers for multiple monthly payments for
11  advance payment of State contributions due to the System for
12  that State fiscal year, then the Board shall submit those
13  additional monthly vouchers as directed by the Comptroller,
14  notwithstanding subsection (b). Unless an act of
15  appropriations provides otherwise, nothing in this Section
16  authorizes the Board to submit, in a State fiscal year,
17  vouchers for the payment of State contributions to the System
18  in an amount that exceeds the rate of payroll that is certified
19  by the System under this Section for that State fiscal year.
20  From the effective date of this amendatory Act of the 93rd
21  General Assembly through June 30, 2004, the Board shall not
22  submit vouchers for the remainder of fiscal year 2004 in
23  excess of the fiscal year 2004 certified contribution amount
24  determined under this Section after taking into consideration
25  the transfer to the System under subsection (d) of Section
26  6z-61 of the State Finance Act.

 

 

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1  (b-2) The These vouchers described in subsections (b) and
2  (b-1) shall be paid by the State Comptroller and Treasurer by
3  warrants drawn on the funds appropriated to the System for
4  that fiscal year.
5  If in any month the amount remaining unexpended from all
6  other appropriations to the System for the applicable fiscal
7  year (including the appropriations to the System under Section
8  8.12 of the State Finance Act and Section 1 of the State
9  Pension Funds Continuing Appropriation Act) is less than the
10  amount lawfully vouchered under this Section, the difference
11  shall be paid from the General Revenue Fund under the
12  continuing appropriation authority provided in Section 1.1 of
13  the State Pension Funds Continuing Appropriation Act.
14  (c) The full amount of any annual appropriation for the
15  System for State fiscal year 1995 shall be transferred and
16  made available to the System at the beginning of that fiscal
17  year at the request of the Board. Any excess funds remaining at
18  the end of any fiscal year from appropriations shall be
19  retained by the System as a general reserve to meet the
20  System's accrued liabilities.
21  (Source: P.A. 100-23, eff. 7-6-17.)
22  (40 ILCS 5/14-131)
23  Sec. 14-131. Contributions by State.
24  (a) The State shall make contributions to the System by
25  appropriations of amounts which, together with other employer

 

 

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1  contributions from trust, federal, and other funds, employee
2  contributions, investment income, and other income, will be
3  sufficient to meet the cost of maintaining and administering
4  the System on a 90% funded basis in accordance with actuarial
5  recommendations.
6  For the purposes of this Section and Section 14-135.08,
7  references to State contributions refer only to employer
8  contributions and do not include employee contributions that
9  are picked up or otherwise paid by the State or a department on
10  behalf of the employee.
11  (b) The Board shall determine the total amount of State
12  contributions required for each fiscal year on the basis of
13  the actuarial tables and other assumptions adopted by the
14  Board, using the formula in subsection (e).
15  The Board shall also determine a State contribution rate
16  for each fiscal year, expressed as a percentage of payroll,
17  based on the total required State contribution for that fiscal
18  year (less the amount received by the System from
19  appropriations under Section 8.12 of the State Finance Act and
20  Section 1 of the State Pension Funds Continuing Appropriation
21  Act, if any, for the fiscal year ending on the June 30
22  immediately preceding the applicable November 15 certification
23  deadline), the estimated payroll (including all forms of
24  compensation) for personal services rendered by eligible
25  employees, and the recommendations of the actuary.
26  For the purposes of this Section and Section 14.1 of the

 

 

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1  State Finance Act, the term "eligible employees" includes
2  employees who participate in the System, persons who may elect
3  to participate in the System but have not so elected, persons
4  who are serving a qualifying period that is required for
5  participation, and annuitants employed by a department as
6  described in subdivision (a)(1) or (a)(2) of Section 14-111.
7  (c) Contributions shall be made by the several departments
8  for each pay period by warrants drawn by the State Comptroller
9  against their respective funds or appropriations based upon
10  vouchers stating the amount to be so contributed. These
11  amounts shall be based on the full rate certified by the Board
12  under Section 14-135.08 for that fiscal year. From March 5,
13  2004 (the effective date of Public Act 93-665) through the
14  payment of the final payroll from fiscal year 2004
15  appropriations, the several departments shall not make
16  contributions for the remainder of fiscal year 2004 but shall
17  instead make payments as required under subsection (a-1) of
18  Section 14.1 of the State Finance Act. The several departments
19  shall resume those contributions at the commencement of fiscal
20  year 2005.
21  (c-1) Notwithstanding subsection (c) of this Section, for
22  fiscal years 2010, 2012, and each fiscal year thereafter,
23  contributions by the several departments are not required to
24  be made for General Revenue Funds payrolls processed by the
25  Comptroller. Payrolls paid by the several departments from all
26  other State funds must continue to be processed pursuant to

 

 

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1  subsection (c) of this Section.
2  (c-2) Unless otherwise directed by the Comptroller under
3  subsection (c-3), For State fiscal years 2010, 2012, and each
4  fiscal year thereafter, on or as soon as possible after the
5  15th day of each month, the Board shall submit vouchers for
6  payment of State contributions to the System for the
7  applicable month on the 15th day of each month, or as soon
8  thereafter as may be practicable. The amount vouchered for a
9  monthly payment shall total , in a total monthly amount of
10  one-twelfth of the fiscal year General Revenue Fund
11  contribution as certified by the System pursuant to Section
12  14-135.08 of this the Illinois Pension Code.
13  (c-3) Beginning in State fiscal year 2025, if the
14  Comptroller requests that the Board submit, during a State
15  fiscal year, vouchers for multiple monthly payments for
16  advance payment of State contributions due to the System for
17  that State fiscal year, then the Board shall submit those
18  additional vouchers as directed by the Comptroller,
19  notwithstanding subsection (c-2). Unless an act of
20  appropriations provides otherwise, nothing in this Section
21  authorizes the Board to submit, in a State fiscal year,
22  vouchers for the payment of State contributions to the System
23  in an amount that exceeds the rate of payroll that is certified
24  by the System under Section 14-135.08 for that State fiscal
25  year.
26  (d) If an employee is paid from trust funds or federal

 

 

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1  funds, the department or other employer shall pay employer
2  contributions from those funds to the System at the certified
3  rate, unless the terms of the trust or the federal-State
4  agreement preclude the use of the funds for that purpose, in
5  which case the required employer contributions shall be paid
6  by the State.
7  (e) For State fiscal years 2012 through 2045, the minimum
8  contribution to the System to be made by the State for each
9  fiscal year shall be an amount determined by the System to be
10  sufficient to bring the total assets of the System up to 90% of
11  the total actuarial liabilities of the System by the end of
12  State fiscal year 2045. In making these determinations, the
13  required State contribution shall be calculated each year as a
14  level percentage of payroll over the years remaining to and
15  including fiscal year 2045 and shall be determined under the
16  projected unit credit actuarial cost method.
17  A change in an actuarial or investment assumption that
18  increases or decreases the required State contribution and
19  first applies in State fiscal year 2018 or thereafter shall be
20  implemented in equal annual amounts over a 5-year period
21  beginning in the State fiscal year in which the actuarial
22  change first applies to the required State contribution.
23  A change in an actuarial or investment assumption that
24  increases or decreases the required State contribution and
25  first applied to the State contribution in fiscal year 2014,
26  2015, 2016, or 2017 shall be implemented:

 

 

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1  (i) as already applied in State fiscal years before
2  2018; and
3  (ii) in the portion of the 5-year period beginning in
4  the State fiscal year in which the actuarial change first
5  applied that occurs in State fiscal year 2018 or
6  thereafter, by calculating the change in equal annual
7  amounts over that 5-year period and then implementing it
8  at the resulting annual rate in each of the remaining
9  fiscal years in that 5-year period.
10  For State fiscal years 1996 through 2005, the State
11  contribution to the System, as a percentage of the applicable
12  employee payroll, shall be increased in equal annual
13  increments so that by State fiscal year 2011, the State is
14  contributing at the rate required under this Section; except
15  that (i) for State fiscal year 1998, for all purposes of this
16  Code and any other law of this State, the certified percentage
17  of the applicable employee payroll shall be 5.052% for
18  employees earning eligible creditable service under Section
19  14-110 and 6.500% for all other employees, notwithstanding any
20  contrary certification made under Section 14-135.08 before
21  July 7, 1997 (the effective date of Public Act 90-65), and (ii)
22  in the following specified State fiscal years, the State
23  contribution to the System shall not be less than the
24  following indicated percentages of the applicable employee
25  payroll, even if the indicated percentage will produce a State
26  contribution in excess of the amount otherwise required under

 

 

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1  this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
2  FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
3  and 10.8% in FY 2004.
4  Beginning in State fiscal year 2046, the minimum State
5  contribution for each fiscal year shall be the amount needed
6  to maintain the total assets of the System at 90% of the total
7  actuarial liabilities of the System.
8  Amounts received by the System pursuant to Section 25 of
9  the Budget Stabilization Act or Section 8.12 of the State
10  Finance Act in any fiscal year do not reduce and do not
11  constitute payment of any portion of the minimum State
12  contribution required under this Article in that fiscal year.
13  Such amounts shall not reduce, and shall not be included in the
14  calculation of, the required State contributions under this
15  Article in any future year until the System has reached a
16  funding ratio of at least 90%. A reference in this Article to
17  the "required State contribution" or any substantially similar
18  term does not include or apply to any amounts payable to the
19  System under Section 25 of the Budget Stabilization Act.
20  Notwithstanding any other provision of this Section, the
21  required State contribution for State fiscal year 2005 and for
22  fiscal year 2008 and each fiscal year thereafter, as
23  calculated under this Section and certified under Section
24  14-135.08, shall not exceed an amount equal to (i) the amount
25  of the required State contribution that would have been
26  calculated under this Section for that fiscal year if the

 

 

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1  System had not received any payments under subsection (d) of
2  Section 7.2 of the General Obligation Bond Act, minus (ii) the
3  portion of the State's total debt service payments for that
4  fiscal year on the bonds issued in fiscal year 2003 for the
5  purposes of that Section 7.2, as determined and certified by
6  the Comptroller, that is the same as the System's portion of
7  the total moneys distributed under subsection (d) of Section
8  7.2 of the General Obligation Bond Act.
9  (f) (Blank).
10  (g) For purposes of determining the required State
11  contribution to the System, the value of the System's assets
12  shall be equal to the actuarial value of the System's assets,
13  which shall be calculated as follows:
14  As of June 30, 2008, the actuarial value of the System's
15  assets shall be equal to the market value of the assets as of
16  that date. In determining the actuarial value of the System's
17  assets for fiscal years after June 30, 2008, any actuarial
18  gains or losses from investment return incurred in a fiscal
19  year shall be recognized in equal annual amounts over the
20  5-year period following that fiscal year.
21  (h) For purposes of determining the required State
22  contribution to the System for a particular year, the
23  actuarial value of assets shall be assumed to earn a rate of
24  return equal to the System's actuarially assumed rate of
25  return.
26  (i) (Blank).

 

 

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1  (j) (Blank).
2  (k) For fiscal year 2012 and each fiscal year thereafter,
3  after the submission of all payments for eligible employees
4  from personal services line items paid from the General
5  Revenue Fund in the fiscal year have been made, the
6  Comptroller shall provide to the System a certification of the
7  sum of all expenditures in the fiscal year for personal
8  services. Upon receipt of the certification, the System shall
9  determine the amount due to the System based on the full rate
10  certified by the Board under Section 14-135.08 for the fiscal
11  year in order to meet the State's obligation under this
12  Section. The System shall compare this amount due to the
13  amount received by the System for the fiscal year. If the
14  amount due is more than the amount received, the difference
15  shall be termed the "Prior Fiscal Year Shortfall" for purposes
16  of this Section, and the Prior Fiscal Year Shortfall shall be
17  satisfied under Section 1.2 of the State Pension Funds
18  Continuing Appropriation Act. If the amount due is less than
19  the amount received, the difference shall be termed the "Prior
20  Fiscal Year Overpayment" for purposes of this Section, and the
21  Prior Fiscal Year Overpayment shall be repaid by the System to
22  the General Revenue Fund as soon as practicable after the
23  certification.
24  (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
25  101-10, eff. 6-5-19.)

 

 

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1  (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
2  Sec. 15-165. To certify amounts and submit vouchers.
3  (a) The Board shall certify to the Governor on or before
4  November 15 of each year until November 15, 2011 the
5  appropriation required from State funds for the purposes of
6  this System for the following fiscal year. The certification
7  under this subsection (a) shall include a copy of the
8  actuarial recommendations upon which it is based and shall
9  specifically identify the System's projected State normal cost
10  for that fiscal year and the projected State cost for the
11  self-managed plan for that fiscal year.
12  On or before May 1, 2004, the Board shall recalculate and
13  recertify to the Governor the amount of the required State
14  contribution to the System for State fiscal year 2005, taking
15  into account the amounts appropriated to and received by the
16  System under subsection (d) of Section 7.2 of the General
17  Obligation Bond Act.
18  On or before July 1, 2005, the Board shall recalculate and
19  recertify to the Governor the amount of the required State
20  contribution to the System for State fiscal year 2006, taking
21  into account the changes in required State contributions made
22  by this amendatory Act of the 94th General Assembly.
23  On or before April 1, 2011, the Board shall recalculate
24  and recertify to the Governor the amount of the required State
25  contribution to the System for State fiscal year 2011,
26  applying the changes made by Public Act 96-889 to the System's

 

 

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1  assets and liabilities as of June 30, 2009 as though Public Act
2  96-889 was approved on that date.
3  (a-5) On or before November 1 of each year, beginning
4  November 1, 2012, the Board shall submit to the State Actuary,
5  the Governor, and the General Assembly a proposed
6  certification of the amount of the required State contribution
7  to the System for the next fiscal year, along with all of the
8  actuarial assumptions, calculations, and data upon which that
9  proposed certification is based. On or before January 1 of
10  each year, beginning January 1, 2013, the State Actuary shall
11  issue a preliminary report concerning the proposed
12  certification and identifying, if necessary, recommended
13  changes in actuarial assumptions that the Board must consider
14  before finalizing its certification of the required State
15  contributions. On or before January 15, 2013 and each January
16  15 thereafter, the Board shall certify to the Governor and the
17  General Assembly the amount of the required State contribution
18  for the next fiscal year. The Board's certification must note,
19  in a written response to the State Actuary, any deviations
20  from the State Actuary's recommended changes, the reason or
21  reasons for not following the State Actuary's recommended
22  changes, and the fiscal impact of not following the State
23  Actuary's recommended changes on the required State
24  contribution.
25  (a-10) By November 1, 2017, the Board shall recalculate
26  and recertify to the State Actuary, the Governor, and the

 

 

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1  General Assembly the amount of the State contribution to the
2  System for State fiscal year 2018, taking into account the
3  changes in required State contributions made by this
4  amendatory Act of the 100th General Assembly. The State
5  Actuary shall review the assumptions and valuations underlying
6  the Board's revised certification and issue a preliminary
7  report concerning the proposed recertification and
8  identifying, if necessary, recommended changes in actuarial
9  assumptions that the Board must consider before finalizing its
10  certification of the required State contributions. The Board's
11  final certification must note any deviations from the State
12  Actuary's recommended changes, the reason or reasons for not
13  following the State Actuary's recommended changes, and the
14  fiscal impact of not following the State Actuary's recommended
15  changes on the required State contribution.
16  (a-15) On or after June 15, 2019, but no later than June
17  30, 2019, the Board shall recalculate and recertify to the
18  Governor and the General Assembly the amount of the State
19  contribution to the System for State fiscal year 2019, taking
20  into account the changes in required State contributions made
21  by this amendatory Act of the 100th General Assembly. The
22  recalculation shall be made using assumptions adopted by the
23  Board for the original fiscal year 2019 certification. The
24  monthly voucher for the 12th month of fiscal year 2019 shall be
25  paid by the Comptroller after the recertification required
26  pursuant to this subsection is submitted to the Governor,

 

 

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1  Comptroller, and General Assembly. The recertification
2  submitted to the General Assembly shall be filed with the
3  Clerk of the House of Representatives and the Secretary of the
4  Senate in electronic form only, in the manner that the Clerk
5  and the Secretary shall direct.
6  (b) The Board shall certify to the State Comptroller or
7  employer, as the case may be, from time to time, by its
8  chairperson and secretary, with its seal attached, the amounts
9  payable to the System from the various funds.
10  (c) Unless otherwise directed by the Comptroller under
11  subsection (c-1), Beginning in State fiscal year 1996, on or
12  as soon as possible after the 15th day of each month the Board
13  shall submit vouchers for payment of State contributions to
14  the System for the applicable month on the 15th day of each
15  month, or as soon thereafter as may be practicable. The amount
16  vouchered for a monthly payment shall total , in a total
17  monthly amount of one-twelfth of the required annual State
18  contribution certified under subsection (a).
19  (c-1) Beginning in State fiscal year 2025, if the
20  Comptroller requests that the Board submit, during a State
21  fiscal year, vouchers for multiple monthly payments for
22  advance payment of State contributions due to the System for
23  that State fiscal year, then the Board shall submit those
24  additional vouchers as directed by the Comptroller,
25  notwithstanding subsection (c). Unless an act of
26  appropriations provides otherwise, nothing in this Section

 

 

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1  authorizes the Board to submit, in a State fiscal year,
2  vouchers for the payment of State contributions to the System
3  in an amount that exceeds the annual certified contribution
4  for the System under this Section for that State fiscal year.
5  From the effective date of this amendatory Act of the 93rd
6  General Assembly through June 30, 2004, the Board shall not
7  submit vouchers for the remainder of fiscal year 2004 in
8  excess of the fiscal year 2004 certified contribution amount
9  determined under this Section after taking into consideration
10  the transfer to the System under subsection (b) of Section
11  6z-61 of the State Finance Act.
12  (c-2) The These vouchers described in subsections (c) and
13  (c-1) shall be paid by the State Comptroller and Treasurer by
14  warrants drawn on the funds appropriated to the System for
15  that fiscal year.
16  If in any month the amount remaining unexpended from all
17  other appropriations to the System for the applicable fiscal
18  year (including the appropriations to the System under Section
19  8.12 of the State Finance Act and Section 1 of the State
20  Pension Funds Continuing Appropriation Act) is less than the
21  amount lawfully vouchered under this Section, the difference
22  shall be paid from the General Revenue Fund under the
23  continuing appropriation authority provided in Section 1.1 of
24  the State Pension Funds Continuing Appropriation Act.
25  (d) So long as the payments received are the full amount
26  lawfully vouchered under this Section, payments received by

 

 

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1  the System under this Section shall be applied first toward
2  the employer contribution to the self-managed plan established
3  under Section 15-158.2. Payments shall be applied second
4  toward the employer's portion of the normal costs of the
5  System, as defined in subsection (f) of Section 15-155. The
6  balance shall be applied toward the unfunded actuarial
7  liabilities of the System.
8  (e) In the event that the System does not receive, as a
9  result of legislative enactment or otherwise, payments
10  sufficient to fully fund the employer contribution to the
11  self-managed plan established under Section 15-158.2 and to
12  fully fund that portion of the employer's portion of the
13  normal costs of the System, as calculated in accordance with
14  Section 15-155(a-1), then any payments received shall be
15  applied proportionately to the optional retirement program
16  established under Section 15-158.2 and to the employer's
17  portion of the normal costs of the System, as calculated in
18  accordance with Section 15-155(a-1).
19  (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
20  (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
21  Sec. 16-158. Contributions by State and other employing
22  units.
23  (a) The State shall make contributions to the System by
24  means of appropriations from the Common School Fund and other
25  State funds of amounts which, together with other employer

 

 

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1  contributions, employee contributions, investment income, and
2  other income, will be sufficient to meet the cost of
3  maintaining and administering the System on a 90% funded basis
4  in accordance with actuarial recommendations.
5  The Board shall determine the amount of State
6  contributions required for each fiscal year on the basis of
7  the actuarial tables and other assumptions adopted by the
8  Board and the recommendations of the actuary, using the
9  formula in subsection (b-3).
10  (a-1) Annually, on or before November 15 until November
11  15, 2011, the Board shall certify to the Governor the amount of
12  the required State contribution for the coming fiscal year.
13  The certification under this subsection (a-1) shall include a
14  copy of the actuarial recommendations upon which it is based
15  and shall specifically identify the System's projected State
16  normal cost for that fiscal year.
17  On or before May 1, 2004, the Board shall recalculate and
18  recertify to the Governor the amount of the required State
19  contribution to the System for State fiscal year 2005, taking
20  into account the amounts appropriated to and received by the
21  System under subsection (d) of Section 7.2 of the General
22  Obligation Bond Act.
23  On or before July 1, 2005, the Board shall recalculate and
24  recertify to the Governor the amount of the required State
25  contribution to the System for State fiscal year 2006, taking
26  into account the changes in required State contributions made

 

 

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1  by Public Act 94-4.
2  On or before April 1, 2011, the Board shall recalculate
3  and recertify to the Governor the amount of the required State
4  contribution to the System for State fiscal year 2011,
5  applying the changes made by Public Act 96-889 to the System's
6  assets and liabilities as of June 30, 2009 as though Public Act
7  96-889 was approved on that date.
8  (a-5) On or before November 1 of each year, beginning
9  November 1, 2012, the Board shall submit to the State Actuary,
10  the Governor, and the General Assembly a proposed
11  certification of the amount of the required State contribution
12  to the System for the next fiscal year, along with all of the
13  actuarial assumptions, calculations, and data upon which that
14  proposed certification is based. On or before January 1 of
15  each year, beginning January 1, 2013, the State Actuary shall
16  issue a preliminary report concerning the proposed
17  certification and identifying, if necessary, recommended
18  changes in actuarial assumptions that the Board must consider
19  before finalizing its certification of the required State
20  contributions. On or before January 15, 2013 and each January
21  15 thereafter, the Board shall certify to the Governor and the
22  General Assembly the amount of the required State contribution
23  for the next fiscal year. The Board's certification must note
24  any deviations from the State Actuary's recommended changes,
25  the reason or reasons for not following the State Actuary's
26  recommended changes, and the fiscal impact of not following

 

 

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1  the State Actuary's recommended changes on the required State
2  contribution.
3  (a-10) By November 1, 2017, the Board shall recalculate
4  and recertify to the State Actuary, the Governor, and the
5  General Assembly the amount of the State contribution to the
6  System for State fiscal year 2018, taking into account the
7  changes in required State contributions made by Public Act
8  100-23. The State Actuary shall review the assumptions and
9  valuations underlying the Board's revised certification and
10  issue a preliminary report concerning the proposed
11  recertification and identifying, if necessary, recommended
12  changes in actuarial assumptions that the Board must consider
13  before finalizing its certification of the required State
14  contributions. The Board's final certification must note any
15  deviations from the State Actuary's recommended changes, the
16  reason or reasons for not following the State Actuary's
17  recommended changes, and the fiscal impact of not following
18  the State Actuary's recommended changes on the required State
19  contribution.
20  (a-15) On or after June 15, 2019, but no later than June
21  30, 2019, the Board shall recalculate and recertify to the
22  Governor and the General Assembly the amount of the State
23  contribution to the System for State fiscal year 2019, taking
24  into account the changes in required State contributions made
25  by Public Act 100-587. The recalculation shall be made using
26  assumptions adopted by the Board for the original fiscal year

 

 

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1  2019 certification. The monthly voucher for the 12th month of
2  fiscal year 2019 shall be paid by the Comptroller after the
3  recertification required pursuant to this subsection is
4  submitted to the Governor, Comptroller, and General Assembly.
5  The recertification submitted to the General Assembly shall be
6  filed with the Clerk of the House of Representatives and the
7  Secretary of the Senate in electronic form only, in the manner
8  that the Clerk and the Secretary shall direct.
9  (b) Through State fiscal year 1995, the State
10  contributions shall be paid to the System in accordance with
11  Section 18-7 of the School Code.
12  (b-1) Unless otherwise directed by the Comptroller under
13  subsection (b-1.1), Beginning in State fiscal year 1996, on
14  the 15th day of each month, or as soon thereafter as may be
15  practicable, the Board shall submit vouchers for payment of
16  State contributions to the System for the applicable month on
17  the 15th day of each month, or as soon thereafter as may be
18  practicable. The amount vouchered for a monthly payment shall
19  total , in a total monthly amount of one-twelfth of the
20  required annual State contribution certified under subsection
21  (a-1).
22  (b-1.1) Beginning in State fiscal year 2025, if the
23  Comptroller requests that the Board submit, during a State
24  fiscal year, vouchers for multiple monthly payments for the
25  advance payment of State contributions due to the System for
26  that State fiscal year, then the Board shall submit those

 

 

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1  additional vouchers as directed by the Comptroller,
2  notwithstanding subsection (b-1). Unless an act of
3  appropriations provides otherwise, nothing in this Section
4  authorizes the Board to submit, in a State fiscal year,
5  vouchers for the payment of State contributions to the System
6  in an amount that exceeds the rate of payroll that is certified
7  by the System under this Section for that State fiscal year.
8  From March 5, 2004 (the effective date of Public Act 93-665)
9  through June 30, 2004, the Board shall not submit vouchers for
10  the remainder of fiscal year 2004 in excess of the fiscal year
11  2004 certified contribution amount determined under this
12  Section after taking into consideration the transfer to the
13  System under subsection (a) of Section 6z-61 of the State
14  Finance Act.
15  (b-1.2) The These vouchers described in subsections (b-1)
16  and (b-1.1) shall be paid by the State Comptroller and
17  Treasurer by warrants drawn on the funds appropriated to the
18  System for that fiscal year.
19  If in any month the amount remaining unexpended from all
20  other appropriations to the System for the applicable fiscal
21  year (including the appropriations to the System under Section
22  8.12 of the State Finance Act and Section 1 of the State
23  Pension Funds Continuing Appropriation Act) is less than the
24  amount lawfully vouchered under this subsection, the
25  difference shall be paid from the Common School Fund under the
26  continuing appropriation authority provided in Section 1.1 of

 

 

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1  the State Pension Funds Continuing Appropriation Act.
2  (b-2) Allocations from the Common School Fund apportioned
3  to school districts not coming under this System shall not be
4  diminished or affected by the provisions of this Article.
5  (b-3) For State fiscal years 2012 through 2045, the
6  minimum contribution to the System to be made by the State for
7  each fiscal year shall be an amount determined by the System to
8  be sufficient to bring the total assets of the System up to 90%
9  of the total actuarial liabilities of the System by the end of
10  State fiscal year 2045. In making these determinations, the
11  required State contribution shall be calculated each year as a
12  level percentage of payroll over the years remaining to and
13  including fiscal year 2045 and shall be determined under the
14  projected unit credit actuarial cost method.
15  For each of State fiscal years 2018, 2019, and 2020, the
16  State shall make an additional contribution to the System
17  equal to 2% of the total payroll of each employee who is deemed
18  to have elected the benefits under Section 1-161 or who has
19  made the election under subsection (c) of Section 1-161.
20  A change in an actuarial or investment assumption that
21  increases or decreases the required State contribution and
22  first applies in State fiscal year 2018 or thereafter shall be
23  implemented in equal annual amounts over a 5-year period
24  beginning in the State fiscal year in which the actuarial
25  change first applies to the required State contribution.
26  A change in an actuarial or investment assumption that

 

 

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1  increases or decreases the required State contribution and
2  first applied to the State contribution in fiscal year 2014,
3  2015, 2016, or 2017 shall be implemented:
4  (i) as already applied in State fiscal years before
5  2018; and
6  (ii) in the portion of the 5-year period beginning in
7  the State fiscal year in which the actuarial change first
8  applied that occurs in State fiscal year 2018 or
9  thereafter, by calculating the change in equal annual
10  amounts over that 5-year period and then implementing it
11  at the resulting annual rate in each of the remaining
12  fiscal years in that 5-year period.
13  For State fiscal years 1996 through 2005, the State
14  contribution to the System, as a percentage of the applicable
15  employee payroll, shall be increased in equal annual
16  increments so that by State fiscal year 2011, the State is
17  contributing at the rate required under this Section; except
18  that in the following specified State fiscal years, the State
19  contribution to the System shall not be less than the
20  following indicated percentages of the applicable employee
21  payroll, even if the indicated percentage will produce a State
22  contribution in excess of the amount otherwise required under
23  this subsection and subsection (a), and notwithstanding any
24  contrary certification made under subsection (a-1) before May
25  27, 1998 (the effective date of Public Act 90-582): 10.02% in
26  FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY

 

 

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1  2002; 12.86% in FY 2003; and 13.56% in FY 2004.
2  Notwithstanding any other provision of this Article, the
3  total required State contribution for State fiscal year 2006
4  is $534,627,700.
5  Notwithstanding any other provision of this Article, the
6  total required State contribution for State fiscal year 2007
7  is $738,014,500.
8  For each of State fiscal years 2008 through 2009, the
9  State contribution to the System, as a percentage of the
10  applicable employee payroll, shall be increased in equal
11  annual increments from the required State contribution for
12  State fiscal year 2007, so that by State fiscal year 2011, the
13  State is contributing at the rate otherwise required under
14  this Section.
15  Notwithstanding any other provision of this Article, the
16  total required State contribution for State fiscal year 2010
17  is $2,089,268,000 and shall be made from the proceeds of bonds
18  sold in fiscal year 2010 pursuant to Section 7.2 of the General
19  Obligation Bond Act, less (i) the pro rata share of bond sale
20  expenses determined by the System's share of total bond
21  proceeds, (ii) any amounts received from the Common School
22  Fund in fiscal year 2010, and (iii) any reduction in bond
23  proceeds due to the issuance of discounted bonds, if
24  applicable.
25  Notwithstanding any other provision of this Article, the
26  total required State contribution for State fiscal year 2011

 

 

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1  is the amount recertified by the System on or before April 1,
2  2011 pursuant to subsection (a-1) of this Section and shall be
3  made from the proceeds of bonds sold in fiscal year 2011
4  pursuant to Section 7.2 of the General Obligation Bond Act,
5  less (i) the pro rata share of bond sale expenses determined by
6  the System's share of total bond proceeds, (ii) any amounts
7  received from the Common School Fund in fiscal year 2011, and
8  (iii) any reduction in bond proceeds due to the issuance of
9  discounted bonds, if applicable. This amount shall include, in
10  addition to the amount certified by the System, an amount
11  necessary to meet employer contributions required by the State
12  as an employer under paragraph (e) of this Section, which may
13  also be used by the System for contributions required by
14  paragraph (a) of Section 16-127.
15  Beginning in State fiscal year 2046, the minimum State
16  contribution for each fiscal year shall be the amount needed
17  to maintain the total assets of the System at 90% of the total
18  actuarial liabilities of the System.
19  Amounts received by the System pursuant to Section 25 of
20  the Budget Stabilization Act or Section 8.12 of the State
21  Finance Act in any fiscal year do not reduce and do not
22  constitute payment of any portion of the minimum State
23  contribution required under this Article in that fiscal year.
24  Such amounts shall not reduce, and shall not be included in the
25  calculation of, the required State contributions under this
26  Article in any future year until the System has reached a

 

 

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1  funding ratio of at least 90%. A reference in this Article to
2  the "required State contribution" or any substantially similar
3  term does not include or apply to any amounts payable to the
4  System under Section 25 of the Budget Stabilization Act.
5  Notwithstanding any other provision of this Section, the
6  required State contribution for State fiscal year 2005 and for
7  fiscal year 2008 and each fiscal year thereafter, as
8  calculated under this Section and certified under subsection
9  (a-1), shall not exceed an amount equal to (i) the amount of
10  the required State contribution that would have been
11  calculated under this Section for that fiscal year if the
12  System had not received any payments under subsection (d) of
13  Section 7.2 of the General Obligation Bond Act, minus (ii) the
14  portion of the State's total debt service payments for that
15  fiscal year on the bonds issued in fiscal year 2003 for the
16  purposes of that Section 7.2, as determined and certified by
17  the Comptroller, that is the same as the System's portion of
18  the total moneys distributed under subsection (d) of Section
19  7.2 of the General Obligation Bond Act. In determining this
20  maximum for State fiscal years 2008 through 2010, however, the
21  amount referred to in item (i) shall be increased, as a
22  percentage of the applicable employee payroll, in equal
23  increments calculated from the sum of the required State
24  contribution for State fiscal year 2007 plus the applicable
25  portion of the State's total debt service payments for fiscal
26  year 2007 on the bonds issued in fiscal year 2003 for the

 

 

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1  purposes of Section 7.2 of the General Obligation Bond Act, so
2  that, by State fiscal year 2011, the State is contributing at
3  the rate otherwise required under this Section.
4  (b-4) Beginning in fiscal year 2018, each employer under
5  this Article shall pay to the System a required contribution
6  determined as a percentage of projected payroll and sufficient
7  to produce an annual amount equal to:
8  (i) for each of fiscal years 2018, 2019, and 2020, the
9  defined benefit normal cost of the defined benefit plan,
10  less the employee contribution, for each employee of that
11  employer who has elected or who is deemed to have elected
12  the benefits under Section 1-161 or who has made the
13  election under subsection (b) of Section 1-161; for fiscal
14  year 2021 and each fiscal year thereafter, the defined
15  benefit normal cost of the defined benefit plan, less the
16  employee contribution, plus 2%, for each employee of that
17  employer who has elected or who is deemed to have elected
18  the benefits under Section 1-161 or who has made the
19  election under subsection (b) of Section 1-161; plus
20  (ii) the amount required for that fiscal year to
21  amortize any unfunded actuarial accrued liability
22  associated with the present value of liabilities
23  attributable to the employer's account under Section
24  16-158.3, determined as a level percentage of payroll over
25  a 30-year rolling amortization period.
26  In determining contributions required under item (i) of

 

 

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1  this subsection, the System shall determine an aggregate rate
2  for all employers, expressed as a percentage of projected
3  payroll.
4  In determining the contributions required under item (ii)
5  of this subsection, the amount shall be computed by the System
6  on the basis of the actuarial assumptions and tables used in
7  the most recent actuarial valuation of the System that is
8  available at the time of the computation.
9  The contributions required under this subsection (b-4)
10  shall be paid by an employer concurrently with that employer's
11  payroll payment period. The State, as the actual employer of
12  an employee, shall make the required contributions under this
13  subsection.
14  (c) Payment of the required State contributions and of all
15  pensions, retirement annuities, death benefits, refunds, and
16  other benefits granted under or assumed by this System, and
17  all expenses in connection with the administration and
18  operation thereof, are obligations of the State.
19  If members are paid from special trust or federal funds
20  which are administered by the employing unit, whether school
21  district or other unit, the employing unit shall pay to the
22  System from such funds the full accruing retirement costs
23  based upon that service, which, beginning July 1, 2017, shall
24  be at a rate, expressed as a percentage of salary, equal to the
25  total employer's normal cost, expressed as a percentage of
26  payroll, as determined by the System. Employer contributions,

 

 

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1  based on salary paid to members from federal funds, may be
2  forwarded by the distributing agency of the State of Illinois
3  to the System prior to allocation, in an amount determined in
4  accordance with guidelines established by such agency and the
5  System. Any contribution for fiscal year 2015 collected as a
6  result of the change made by Public Act 98-674 shall be
7  considered a State contribution under subsection (b-3) of this
8  Section.
9  (d) Effective July 1, 1986, any employer of a teacher as
10  defined in paragraph (8) of Section 16-106 shall pay the
11  employer's normal cost of benefits based upon the teacher's
12  service, in addition to employee contributions, as determined
13  by the System. Such employer contributions shall be forwarded
14  monthly in accordance with guidelines established by the
15  System.
16  However, with respect to benefits granted under Section
17  16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
18  of Section 16-106, the employer's contribution shall be 12%
19  (rather than 20%) of the member's highest annual salary rate
20  for each year of creditable service granted, and the employer
21  shall also pay the required employee contribution on behalf of
22  the teacher. For the purposes of Sections 16-133.4 and
23  16-133.5, a teacher as defined in paragraph (8) of Section
24  16-106 who is serving in that capacity while on leave of
25  absence from another employer under this Article shall not be
26  considered an employee of the employer from which the teacher

 

 

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1  is on leave.
2  (e) Beginning July 1, 1998, every employer of a teacher
3  shall pay to the System an employer contribution computed as
4  follows:
5  (1) Beginning July 1, 1998 through June 30, 1999, the
6  employer contribution shall be equal to 0.3% of each
7  teacher's salary.
8  (2) Beginning July 1, 1999 and thereafter, the
9  employer contribution shall be equal to 0.58% of each
10  teacher's salary.
11  The school district or other employing unit may pay these
12  employer contributions out of any source of funding available
13  for that purpose and shall forward the contributions to the
14  System on the schedule established for the payment of member
15  contributions.
16  These employer contributions are intended to offset a
17  portion of the cost to the System of the increases in
18  retirement benefits resulting from Public Act 90-582.
19  Each employer of teachers is entitled to a credit against
20  the contributions required under this subsection (e) with
21  respect to salaries paid to teachers for the period January 1,
22  2002 through June 30, 2003, equal to the amount paid by that
23  employer under subsection (a-5) of Section 6.6 of the State
24  Employees Group Insurance Act of 1971 with respect to salaries
25  paid to teachers for that period.
26  The additional 1% employee contribution required under

 

 

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1  Section 16-152 by Public Act 90-582 is the responsibility of
2  the teacher and not the teacher's employer, unless the
3  employer agrees, through collective bargaining or otherwise,
4  to make the contribution on behalf of the teacher.
5  If an employer is required by a contract in effect on May
6  1, 1998 between the employer and an employee organization to
7  pay, on behalf of all its full-time employees covered by this
8  Article, all mandatory employee contributions required under
9  this Article, then the employer shall be excused from paying
10  the employer contribution required under this subsection (e)
11  for the balance of the term of that contract. The employer and
12  the employee organization shall jointly certify to the System
13  the existence of the contractual requirement, in such form as
14  the System may prescribe. This exclusion shall cease upon the
15  termination, extension, or renewal of the contract at any time
16  after May 1, 1998.
17  (f) If the amount of a teacher's salary for any school year
18  used to determine final average salary exceeds the member's
19  annual full-time salary rate with the same employer for the
20  previous school year by more than 6%, the teacher's employer
21  shall pay to the System, in addition to all other payments
22  required under this Section and in accordance with guidelines
23  established by the System, the present value of the increase
24  in benefits resulting from the portion of the increase in
25  salary that is in excess of 6%. This present value shall be
26  computed by the System on the basis of the actuarial

 

 

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1  assumptions and tables used in the most recent actuarial
2  valuation of the System that is available at the time of the
3  computation. If a teacher's salary for the 2005-2006 school
4  year is used to determine final average salary under this
5  subsection (f), then the changes made to this subsection (f)
6  by Public Act 94-1057 shall apply in calculating whether the
7  increase in his or her salary is in excess of 6%. For the
8  purposes of this Section, change in employment under Section
9  10-21.12 of the School Code on or after June 1, 2005 shall
10  constitute a change in employer. The System may require the
11  employer to provide any pertinent information or
12  documentation. The changes made to this subsection (f) by
13  Public Act 94-1111 apply without regard to whether the teacher
14  was in service on or after its effective date.
15  Whenever it determines that a payment is or may be
16  required under this subsection, the System shall calculate the
17  amount of the payment and bill the employer for that amount.
18  The bill shall specify the calculations used to determine the
19  amount due. If the employer disputes the amount of the bill, it
20  may, within 30 days after receipt of the bill, apply to the
21  System in writing for a recalculation. The application must
22  specify in detail the grounds of the dispute and, if the
23  employer asserts that the calculation is subject to subsection
24  (g), (g-5), (g-10), (g-15), or (h) of this Section, must
25  include an affidavit setting forth and attesting to all facts
26  within the employer's knowledge that are pertinent to the

 

 

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1  applicability of that subsection. Upon receiving a timely
2  application for recalculation, the System shall review the
3  application and, if appropriate, recalculate the amount due.
4  The employer contributions required under this subsection
5  (f) may be paid in the form of a lump sum within 90 days after
6  receipt of the bill. If the employer contributions are not
7  paid within 90 days after receipt of the bill, then interest
8  will be charged at a rate equal to the System's annual
9  actuarially assumed rate of return on investment compounded
10  annually from the 91st day after receipt of the bill. Payments
11  must be concluded within 3 years after the employer's receipt
12  of the bill.
13  (f-1) (Blank).
14  (g) This subsection (g) applies only to payments made or
15  salary increases given on or after June 1, 2005 but before July
16  1, 2011. The changes made by Public Act 94-1057 shall not
17  require the System to refund any payments received before July
18  31, 2006 (the effective date of Public Act 94-1057).
19  When assessing payment for any amount due under subsection
20  (f), the System shall exclude salary increases paid to
21  teachers under contracts or collective bargaining agreements
22  entered into, amended, or renewed before June 1, 2005.
23  When assessing payment for any amount due under subsection
24  (f), the System shall exclude salary increases paid to a
25  teacher at a time when the teacher is 10 or more years from
26  retirement eligibility under Section 16-132 or 16-133.2.

 

 

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1  When assessing payment for any amount due under subsection
2  (f), the System shall exclude salary increases resulting from
3  overload work, including summer school, when the school
4  district has certified to the System, and the System has
5  approved the certification, that (i) the overload work is for
6  the sole purpose of classroom instruction in excess of the
7  standard number of classes for a full-time teacher in a school
8  district during a school year and (ii) the salary increases
9  are equal to or less than the rate of pay for classroom
10  instruction computed on the teacher's current salary and work
11  schedule.
12  When assessing payment for any amount due under subsection
13  (f), the System shall exclude a salary increase resulting from
14  a promotion (i) for which the employee is required to hold a
15  certificate or supervisory endorsement issued by the State
16  Teacher Certification Board that is a different certification
17  or supervisory endorsement than is required for the teacher's
18  previous position and (ii) to a position that has existed and
19  been filled by a member for no less than one complete academic
20  year and the salary increase from the promotion is an increase
21  that results in an amount no greater than the lesser of the
22  average salary paid for other similar positions in the
23  district requiring the same certification or the amount
24  stipulated in the collective bargaining agreement for a
25  similar position requiring the same certification.
26  When assessing payment for any amount due under subsection

 

 

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1  (f), the System shall exclude any payment to the teacher from
2  the State of Illinois or the State Board of Education over
3  which the employer does not have discretion, notwithstanding
4  that the payment is included in the computation of final
5  average salary.
6  (g-5) When assessing payment for any amount due under
7  subsection (f), the System shall exclude salary increases
8  resulting from overload or stipend work performed in a school
9  year subsequent to a school year in which the employer was
10  unable to offer or allow to be conducted overload or stipend
11  work due to an emergency declaration limiting such activities.
12  (g-10) When assessing payment for any amount due under
13  subsection (f), the System shall exclude salary increases
14  resulting from increased instructional time that exceeded the
15  instructional time required during the 2019-2020 school year.
16  (g-15) When assessing payment for any amount due under
17  subsection (f), the System shall exclude salary increases
18  resulting from teaching summer school on or after May 1, 2021
19  and before September 15, 2022.
20  (h) When assessing payment for any amount due under
21  subsection (f), the System shall exclude any salary increase
22  described in subsection (g) of this Section given on or after
23  July 1, 2011 but before July 1, 2014 under a contract or
24  collective bargaining agreement entered into, amended, or
25  renewed on or after June 1, 2005 but before July 1, 2011.
26  Notwithstanding any other provision of this Section, any

 

 

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1  payments made or salary increases given after June 30, 2014
2  shall be used in assessing payment for any amount due under
3  subsection (f) of this Section.
4  (i) The System shall prepare a report and file copies of
5  the report with the Governor and the General Assembly by
6  January 1, 2007 that contains all of the following
7  information:
8  (1) The number of recalculations required by the
9  changes made to this Section by Public Act 94-1057 for
10  each employer.
11  (2) The dollar amount by which each employer's
12  contribution to the System was changed due to
13  recalculations required by Public Act 94-1057.
14  (3) The total amount the System received from each
15  employer as a result of the changes made to this Section by
16  Public Act 94-4.
17  (4) The increase in the required State contribution
18  resulting from the changes made to this Section by Public
19  Act 94-1057.
20  (i-5) For school years beginning on or after July 1, 2017,
21  if the amount of a participant's salary for any school year
22  exceeds the amount of the salary set for the Governor, the
23  participant's employer shall pay to the System, in addition to
24  all other payments required under this Section and in
25  accordance with guidelines established by the System, an
26  amount determined by the System to be equal to the employer

 

 

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1  normal cost, as established by the System and expressed as a
2  total percentage of payroll, multiplied by the amount of
3  salary in excess of the amount of the salary set for the
4  Governor. This amount shall be computed by the System on the
5  basis of the actuarial assumptions and tables used in the most
6  recent actuarial valuation of the System that is available at
7  the time of the computation. The System may require the
8  employer to provide any pertinent information or
9  documentation.
10  Whenever it determines that a payment is or may be
11  required under this subsection, the System shall calculate the
12  amount of the payment and bill the employer for that amount.
13  The bill shall specify the calculations used to determine the
14  amount due. If the employer disputes the amount of the bill, it
15  may, within 30 days after receipt of the bill, apply to the
16  System in writing for a recalculation. The application must
17  specify in detail the grounds of the dispute. Upon receiving a
18  timely application for recalculation, the System shall review
19  the application and, if appropriate, recalculate the amount
20  due.
21  The employer contributions required under this subsection
22  may be paid in the form of a lump sum within 90 days after
23  receipt of the bill. If the employer contributions are not
24  paid within 90 days after receipt of the bill, then interest
25  will be charged at a rate equal to the System's annual
26  actuarially assumed rate of return on investment compounded

 

 

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1  annually from the 91st day after receipt of the bill. Payments
2  must be concluded within 3 years after the employer's receipt
3  of the bill.
4  (j) For purposes of determining the required State
5  contribution to the System, the value of the System's assets
6  shall be equal to the actuarial value of the System's assets,
7  which shall be calculated as follows:
8  As of June 30, 2008, the actuarial value of the System's
9  assets shall be equal to the market value of the assets as of
10  that date. In determining the actuarial value of the System's
11  assets for fiscal years after June 30, 2008, any actuarial
12  gains or losses from investment return incurred in a fiscal
13  year shall be recognized in equal annual amounts over the
14  5-year period following that fiscal year.
15  (k) For purposes of determining the required State
16  contribution to the system for a particular year, the
17  actuarial value of assets shall be assumed to earn a rate of
18  return equal to the system's actuarially assumed rate of
19  return.
20  (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
21  102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 102-558, eff.
22  8-20-21; 102-813, eff. 5-13-22.)
23  (40 ILCS 5/18-140) (from Ch. 108 1/2, par. 18-140)
24  Sec. 18-140. To certify required State contributions and
25  submit vouchers.

 

 

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1  (a) The Board shall certify to the Governor, on or before
2  November 15 of each year until November 15, 2011, the amount of
3  the required State contribution to the System for the
4  following fiscal year and shall specifically identify the
5  System's projected State normal cost for that fiscal year. The
6  certification shall include a copy of the actuarial
7  recommendations upon which it is based and shall specifically
8  identify the System's projected State normal cost for that
9  fiscal year.
10  On or before November 1 of each year, beginning November
11  1, 2012, the Board shall submit to the State Actuary, the
12  Governor, and the General Assembly a proposed certification of
13  the amount of the required State contribution to the System
14  for the next fiscal year, along with all of the actuarial
15  assumptions, calculations, and data upon which that proposed
16  certification is based. On or before January 1 of each year
17  beginning January 1, 2013, the State Actuary shall issue a
18  preliminary report concerning the proposed certification and
19  identifying, if necessary, recommended changes in actuarial
20  assumptions that the Board must consider before finalizing its
21  certification of the required State contributions. On or
22  before January 15, 2013 and every January 15 thereafter, the
23  Board shall certify to the Governor and the General Assembly
24  the amount of the required State contribution for the next
25  fiscal year. The Board's certification must note any
26  deviations from the State Actuary's recommended changes, the

 

 

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1  reason or reasons for not following the State Actuary's
2  recommended changes, and the fiscal impact of not following
3  the State Actuary's recommended changes on the required State
4  contribution.
5  On or before May 1, 2004, the Board shall recalculate and
6  recertify to the Governor the amount of the required State
7  contribution to the System for State fiscal year 2005, taking
8  into account the amounts appropriated to and received by the
9  System under subsection (d) of Section 7.2 of the General
10  Obligation Bond Act.
11  On or before July 1, 2005, the Board shall recalculate and
12  recertify to the Governor the amount of the required State
13  contribution to the System for State fiscal year 2006, taking
14  into account the changes in required State contributions made
15  by this amendatory Act of the 94th General Assembly.
16  On or before April 1, 2011, the Board shall recalculate
17  and recertify to the Governor the amount of the required State
18  contribution to the System for State fiscal year 2011,
19  applying the changes made by Public Act 96-889 to the System's
20  assets and liabilities as of June 30, 2009 as though Public Act
21  96-889 was approved on that date.
22  By November 1, 2017, the Board shall recalculate and
23  recertify to the State Actuary, the Governor, and the General
24  Assembly the amount of the State contribution to the System
25  for State fiscal year 2018, taking into account the changes in
26  required State contributions made by this amendatory Act of

 

 

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1  the 100th General Assembly. The State Actuary shall review the
2  assumptions and valuations underlying the Board's revised
3  certification and issue a preliminary report concerning the
4  proposed recertification and identifying, if necessary,
5  recommended changes in actuarial assumptions that the Board
6  must consider before finalizing its certification of the
7  required State contributions. The Board's final certification
8  must note any deviations from the State Actuary's recommended
9  changes, the reason or reasons for not following the State
10  Actuary's recommended changes, and the fiscal impact of not
11  following the State Actuary's recommended changes on the
12  required State contribution.
13  (b) Unless otherwise directed by the Comptroller under
14  subsection (b-1), Beginning in State fiscal year 1996, on or
15  as soon as possible after the 15th day of each month the Board
16  shall submit vouchers for payment of State contributions to
17  the System for the applicable month on the 15th day of each
18  month, or as soon thereafter as may be practicable. The amount
19  vouchered for a monthly payment shall total , in a total
20  monthly amount of one-twelfth of the required annual State
21  contribution certified under subsection (a).
22  (b-1) Beginning in State fiscal year 2025, if the
23  Comptroller requests that the Board submit, during a State
24  fiscal year, vouchers for multiple monthly payments for the
25  advance payment of State contributions due to the System for
26  that State fiscal year, then the Board shall submit those

 

 

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1  additional vouchers as directed by the Comptroller,
2  notwithstanding subsection (b). Unless an act of
3  appropriations provides otherwise, nothing in this Section
4  authorizes the Board to submit, in a State fiscal year,
5  vouchers for the payment of State contributions to the System
6  in an amount that exceeds the rate of payroll that is certified
7  by the System under this Section for that State fiscal year.
8  From the effective date of this amendatory Act of the 93rd
9  General Assembly through June 30, 2004, the Board shall not
10  submit vouchers for the remainder of fiscal year 2004 in
11  excess of the fiscal year 2004 certified contribution amount
12  determined under this Section after taking into consideration
13  the transfer to the System under subsection (c) of Section
14  6z-61 of the State Finance Act.
15  (b-2) The These vouchers described in subsections (b) and
16  (b-1) shall be paid by the State Comptroller and Treasurer by
17  warrants drawn on the funds appropriated to the System for
18  that fiscal year.
19  If in any month the amount remaining unexpended from all
20  other appropriations to the System for the applicable fiscal
21  year (including the appropriations to the System under Section
22  8.12 of the State Finance Act and Section 1 of the State
23  Pension Funds Continuing Appropriation Act) is less than the
24  amount lawfully vouchered under this Section, the difference
25  shall be paid from the General Revenue Fund under the
26  continuing appropriation authority provided in Section 1.1 of

 

 

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1  the State Pension Funds Continuing Appropriation Act.
2  (Source: P.A. 100-23, eff. 7-6-17.)

 

 

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