Illinois 2025-2026 Regular Session

Illinois House Bill HB2564 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2564 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 Amends the Downstate Teacher Article of the Illinois Pension Code. In provisions requiring an additional employer contribution for certain salary increases greater than 6%, provides that the System shall exclude salary increases given on or after July 1, 2025 resulting from overload work, including summer school, when the school district has certified to the System, and the System has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule. Effective immediately. LRB104 05520 RPS 15549 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2564 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED: 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 Amends the Downstate Teacher Article of the Illinois Pension Code. In provisions requiring an additional employer contribution for certain salary increases greater than 6%, provides that the System shall exclude salary increases given on or after July 1, 2025 resulting from overload work, including summer school, when the school district has certified to the System, and the System has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule. Effective immediately. LRB104 05520 RPS 15549 b LRB104 05520 RPS 15549 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2564 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
4	4	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
5	5	Amends the Downstate Teacher Article of the Illinois Pension Code. In provisions requiring an additional employer contribution for certain salary increases greater than 6%, provides that the System shall exclude salary increases given on or after July 1, 2025 resulting from overload work, including summer school, when the school district has certified to the System, and the System has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule. Effective immediately.
6	6	LRB104 05520 RPS 15549 b LRB104 05520 RPS 15549 b
7	7	LRB104 05520 RPS 15549 b
8	8	A BILL FOR
9	9	HB2564LRB104 05520 RPS 15549 b HB2564 LRB104 05520 RPS 15549 b
10	10	HB2564 LRB104 05520 RPS 15549 b
11	11	1 AN ACT concerning public employee benefits.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Pension Code is amended by
15	15	5 changing Section 16-158 as follows:
16	16	6 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
17	17	7 Sec. 16-158. Contributions by State and other employing
18	18	8 units.
19	19	9 (a) The State shall make contributions to the System by
20	20	10 means of appropriations from the Common School Fund and other
21	21	11 State funds of amounts which, together with other employer
22	22	12 contributions, employee contributions, investment income, and
23	23	13 other income, will be sufficient to meet the cost of
24	24	14 maintaining and administering the System on a 90% funded basis
25	25	15 in accordance with actuarial recommendations.
26	26	16 The Board shall determine the amount of State
27	27	17 contributions required for each fiscal year on the basis of
28	28	18 the actuarial tables and other assumptions adopted by the
29	29	19 Board and the recommendations of the actuary, using the
30	30	20 formula in subsection (b-3).
31	31	21 (a-1) Annually, on or before November 15 until November
32	32	22 15, 2011, the Board shall certify to the Governor the amount of
33	33	23 the required State contribution for the coming fiscal year.
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2564 Introduced , by Rep. Dave Vella SYNOPSIS AS INTRODUCED:
38	38	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
39	39	40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40	40	Amends the Downstate Teacher Article of the Illinois Pension Code. In provisions requiring an additional employer contribution for certain salary increases greater than 6%, provides that the System shall exclude salary increases given on or after July 1, 2025 resulting from overload work, including summer school, when the school district has certified to the System, and the System has approved the certification, that (i) the overload work is for the sole purpose of classroom instruction in excess of the standard number of classes for a full-time teacher in a school district during a school year and (ii) the salary increases are equal to or less than the rate of pay for classroom instruction computed on the teacher's current salary and work schedule. Effective immediately.
41	41	LRB104 05520 RPS 15549 b LRB104 05520 RPS 15549 b
42	42	LRB104 05520 RPS 15549 b
43	43	A BILL FOR
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68	68	1 The certification under this subsection (a-1) shall include a
69	69	2 copy of the actuarial recommendations upon which it is based
70	70	3 and shall specifically identify the System's projected State
71	71	4 normal cost for that fiscal year.
72	72	5 On or before May 1, 2004, the Board shall recalculate and
73	73	6 recertify to the Governor the amount of the required State
74	74	7 contribution to the System for State fiscal year 2005, taking
75	75	8 into account the amounts appropriated to and received by the
76	76	9 System under subsection (d) of Section 7.2 of the General
77	77	10 Obligation Bond Act.
78	78	11 On or before July 1, 2005, the Board shall recalculate and
79	79	12 recertify to the Governor the amount of the required State
80	80	13 contribution to the System for State fiscal year 2006, taking
81	81	14 into account the changes in required State contributions made
82	82	15 by Public Act 94-4.
83	83	16 On or before April 1, 2011, the Board shall recalculate
84	84	17 and recertify to the Governor the amount of the required State
85	85	18 contribution to the System for State fiscal year 2011,
86	86	19 applying the changes made by Public Act 96-889 to the System's
87	87	20 assets and liabilities as of June 30, 2009 as though Public Act
88	88	21 96-889 was approved on that date.
89	89	22 (a-5) On or before November 1 of each year, beginning
90	90	23 November 1, 2012, the Board shall submit to the State Actuary,
91	91	24 the Governor, and the General Assembly a proposed
92	92	25 certification of the amount of the required State contribution
93	93	26 to the System for the next fiscal year, along with all of the
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104	104	1 actuarial assumptions, calculations, and data upon which that
105	105	2 proposed certification is based. On or before January 1 of
106	106	3 each year, beginning January 1, 2013, the State Actuary shall
107	107	4 issue a preliminary report concerning the proposed
108	108	5 certification and identifying, if necessary, recommended
109	109	6 changes in actuarial assumptions that the Board must consider
110	110	7 before finalizing its certification of the required State
111	111	8 contributions. On or before January 15, 2013 and each January
112	112	9 15 thereafter, the Board shall certify to the Governor and the
113	113	10 General Assembly the amount of the required State contribution
114	114	11 for the next fiscal year. The Board's certification must note
115	115	12 any deviations from the State Actuary's recommended changes,
116	116	13 the reason or reasons for not following the State Actuary's
117	117	14 recommended changes, and the fiscal impact of not following
118	118	15 the State Actuary's recommended changes on the required State
119	119	16 contribution.
120	120	17 (a-10) By November 1, 2017, the Board shall recalculate
121	121	18 and recertify to the State Actuary, the Governor, and the
122	122	19 General Assembly the amount of the State contribution to the
123	123	20 System for State fiscal year 2018, taking into account the
124	124	21 changes in required State contributions made by Public Act
125	125	22 100-23. The State Actuary shall review the assumptions and
126	126	23 valuations underlying the Board's revised certification and
127	127	24 issue a preliminary report concerning the proposed
128	128	25 recertification and identifying, if necessary, recommended
129	129	26 changes in actuarial assumptions that the Board must consider
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140	140	1 before finalizing its certification of the required State
141	141	2 contributions. The Board's final certification must note any
142	142	3 deviations from the State Actuary's recommended changes, the
143	143	4 reason or reasons for not following the State Actuary's
144	144	5 recommended changes, and the fiscal impact of not following
145	145	6 the State Actuary's recommended changes on the required State
146	146	7 contribution.
147	147	8 (a-15) On or after June 15, 2019, but no later than June
148	148	9 30, 2019, the Board shall recalculate and recertify to the
149	149	10 Governor and the General Assembly the amount of the State
150	150	11 contribution to the System for State fiscal year 2019, taking
151	151	12 into account the changes in required State contributions made
152	152	13 by Public Act 100-587. The recalculation shall be made using
153	153	14 assumptions adopted by the Board for the original fiscal year
154	154	15 2019 certification. The monthly voucher for the 12th month of
155	155	16 fiscal year 2019 shall be paid by the Comptroller after the
156	156	17 recertification required pursuant to this subsection is
157	157	18 submitted to the Governor, Comptroller, and General Assembly.
158	158	19 The recertification submitted to the General Assembly shall be
159	159	20 filed with the Clerk of the House of Representatives and the
160	160	21 Secretary of the Senate in electronic form only, in the manner
161	161	22 that the Clerk and the Secretary shall direct.
162	162	23 (b) Through State fiscal year 1995, the State
163	163	24 contributions shall be paid to the System in accordance with
164	164	25 Section 18-7 of the School Code.
165	165	26 (b-1) Unless otherwise directed by the Comptroller under
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176	176	1 subsection (b-1.1), the Board shall submit vouchers for
177	177	2 payment of State contributions to the System for the
178	178	3 applicable month on the 15th day of each month, or as soon
179	179	4 thereafter as may be practicable. The amount vouchered for a
180	180	5 monthly payment shall total one-twelfth of the required annual
181	181	6 State contribution certified under subsection (a-1).
182	182	7 (b-1.1) Beginning in State fiscal year 2025, if the
183	183	8 Comptroller requests that the Board submit, during a State
184	184	9 fiscal year, vouchers for multiple monthly payments for the
185	185	10 advance payment of State contributions due to the System for
186	186	11 that State fiscal year, then the Board shall submit those
187	187	12 additional vouchers as directed by the Comptroller,
188	188	13 notwithstanding subsection (b-1). Unless an act of
189	189	14 appropriations provides otherwise, nothing in this Section
190	190	15 authorizes the Board to submit, in a State fiscal year,
191	191	16 vouchers for the payment of State contributions to the System
192	192	17 in an amount that exceeds the rate of payroll that is certified
193	193	18 by the System under this Section for that State fiscal year.
194	194	19 (b-1.2) The vouchers described in subsections (b-1) and
195	195	20 (b-1.1) shall be paid by the State Comptroller and Treasurer
196	196	21 by warrants drawn on the funds appropriated to the System for
197	197	22 that fiscal year.
198	198	23 If in any month the amount remaining unexpended from all
199	199	24 other appropriations to the System for the applicable fiscal
200	200	25 year (including the appropriations to the System under Section
201	201	26 8.12 of the State Finance Act and Section 1 of the State
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212	212	1 Pension Funds Continuing Appropriation Act) is less than the
213	213	2 amount lawfully vouchered under this subsection, the
214	214	3 difference shall be paid from the Common School Fund under the
215	215	4 continuing appropriation authority provided in Section 1.1 of
216	216	5 the State Pension Funds Continuing Appropriation Act.
217	217	6 (b-2) Allocations from the Common School Fund apportioned
218	218	7 to school districts not coming under this System shall not be
219	219	8 diminished or affected by the provisions of this Article.
220	220	9 (b-3) For State fiscal years 2012 through 2045, the
221	221	10 minimum contribution to the System to be made by the State for
222	222	11 each fiscal year shall be an amount determined by the System to
223	223	12 be sufficient to bring the total assets of the System up to 90%
224	224	13 of the total actuarial liabilities of the System by the end of
225	225	14 State fiscal year 2045. In making these determinations, the
226	226	15 required State contribution shall be calculated each year as a
227	227	16 level percentage of payroll over the years remaining to and
228	228	17 including fiscal year 2045 and shall be determined under the
229	229	18 projected unit credit actuarial cost method.
230	230	19 For each of State fiscal years 2018, 2019, and 2020, the
231	231	20 State shall make an additional contribution to the System
232	232	21 equal to 2% of the total payroll of each employee who is deemed
233	233	22 to have elected the benefits under Section 1-161 or who has
234	234	23 made the election under subsection (c) of Section 1-161.
235	235	24 A change in an actuarial or investment assumption that
236	236	25 increases or decreases the required State contribution and
237	237	26 first applies in State fiscal year 2018 or thereafter shall be
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248	248	1 implemented in equal annual amounts over a 5-year period
249	249	2 beginning in the State fiscal year in which the actuarial
250	250	3 change first applies to the required State contribution.
251	251	4 A change in an actuarial or investment assumption that
252	252	5 increases or decreases the required State contribution and
253	253	6 first applied to the State contribution in fiscal year 2014,
254	254	7 2015, 2016, or 2017 shall be implemented:
255	255	8 (i) as already applied in State fiscal years before
256	256	9 2018; and
257	257	10 (ii) in the portion of the 5-year period beginning in
258	258	11 the State fiscal year in which the actuarial change first
259	259	12 applied that occurs in State fiscal year 2018 or
260	260	13 thereafter, by calculating the change in equal annual
261	261	14 amounts over that 5-year period and then implementing it
262	262	15 at the resulting annual rate in each of the remaining
263	263	16 fiscal years in that 5-year period.
264	264	17 For State fiscal years 1996 through 2005, the State
265	265	18 contribution to the System, as a percentage of the applicable
266	266	19 employee payroll, shall be increased in equal annual
267	267	20 increments so that by State fiscal year 2011, the State is
268	268	21 contributing at the rate required under this Section; except
269	269	22 that in the following specified State fiscal years, the State
270	270	23 contribution to the System shall not be less than the
271	271	24 following indicated percentages of the applicable employee
272	272	25 payroll, even if the indicated percentage will produce a State
273	273	26 contribution in excess of the amount otherwise required under
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284	284	1 this subsection and subsection (a), and notwithstanding any
285	285	2 contrary certification made under subsection (a-1) before May
286	286	3 27, 1998 (the effective date of Public Act 90-582): 10.02% in
287	287	4 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
288	288	5 2002; 12.86% in FY 2003; and 13.56% in FY 2004.
289	289	6 Notwithstanding any other provision of this Article, the
290	290	7 total required State contribution for State fiscal year 2006
291	291	8 is $534,627,700.
292	292	9 Notwithstanding any other provision of this Article, the
293	293	10 total required State contribution for State fiscal year 2007
294	294	11 is $738,014,500.
295	295	12 For each of State fiscal years 2008 through 2009, the
296	296	13 State contribution to the System, as a percentage of the
297	297	14 applicable employee payroll, shall be increased in equal
298	298	15 annual increments from the required State contribution for
299	299	16 State fiscal year 2007, so that by State fiscal year 2011, the
300	300	17 State is contributing at the rate otherwise required under
301	301	18 this Section.
302	302	19 Notwithstanding any other provision of this Article, the
303	303	20 total required State contribution for State fiscal year 2010
304	304	21 is $2,089,268,000 and shall be made from the proceeds of bonds
305	305	22 sold in fiscal year 2010 pursuant to Section 7.2 of the General
306	306	23 Obligation Bond Act, less (i) the pro rata share of bond sale
307	307	24 expenses determined by the System's share of total bond
308	308	25 proceeds, (ii) any amounts received from the Common School
309	309	26 Fund in fiscal year 2010, and (iii) any reduction in bond
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320	320	1 proceeds due to the issuance of discounted bonds, if
321	321	2 applicable.
322	322	3 Notwithstanding any other provision of this Article, the
323	323	4 total required State contribution for State fiscal year 2011
324	324	5 is the amount recertified by the System on or before April 1,
325	325	6 2011 pursuant to subsection (a-1) of this Section and shall be
326	326	7 made from the proceeds of bonds sold in fiscal year 2011
327	327	8 pursuant to Section 7.2 of the General Obligation Bond Act,
328	328	9 less (i) the pro rata share of bond sale expenses determined by
329	329	10 the System's share of total bond proceeds, (ii) any amounts
330	330	11 received from the Common School Fund in fiscal year 2011, and
331	331	12 (iii) any reduction in bond proceeds due to the issuance of
332	332	13 discounted bonds, if applicable. This amount shall include, in
333	333	14 addition to the amount certified by the System, an amount
334	334	15 necessary to meet employer contributions required by the State
335	335	16 as an employer under paragraph (e) of this Section, which may
336	336	17 also be used by the System for contributions required by
337	337	18 paragraph (a) of Section 16-127.
338	338	19 Beginning in State fiscal year 2046, the minimum State
339	339	20 contribution for each fiscal year shall be the amount needed
340	340	21 to maintain the total assets of the System at 90% of the total
341	341	22 actuarial liabilities of the System.
342	342	23 Amounts received by the System pursuant to Section 25 of
343	343	24 the Budget Stabilization Act or Section 8.12 of the State
344	344	25 Finance Act in any fiscal year do not reduce and do not
345	345	26 constitute payment of any portion of the minimum State
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356	356	1 contribution required under this Article in that fiscal year.
357	357	2 Such amounts shall not reduce, and shall not be included in the
358	358	3 calculation of, the required State contributions under this
359	359	4 Article in any future year until the System has reached a
360	360	5 funding ratio of at least 90%. A reference in this Article to
361	361	6 the "required State contribution" or any substantially similar
362	362	7 term does not include or apply to any amounts payable to the
363	363	8 System under Section 25 of the Budget Stabilization Act.
364	364	9 Notwithstanding any other provision of this Section, the
365	365	10 required State contribution for State fiscal year 2005 and for
366	366	11 fiscal year 2008 and each fiscal year thereafter, as
367	367	12 calculated under this Section and certified under subsection
368	368	13 (a-1), shall not exceed an amount equal to (i) the amount of
369	369	14 the required State contribution that would have been
370	370	15 calculated under this Section for that fiscal year if the
371	371	16 System had not received any payments under subsection (d) of
372	372	17 Section 7.2 of the General Obligation Bond Act, minus (ii) the
373	373	18 portion of the State's total debt service payments for that
374	374	19 fiscal year on the bonds issued in fiscal year 2003 for the
375	375	20 purposes of that Section 7.2, as determined and certified by
376	376	21 the Comptroller, that is the same as the System's portion of
377	377	22 the total moneys distributed under subsection (d) of Section
378	378	23 7.2 of the General Obligation Bond Act. In determining this
379	379	24 maximum for State fiscal years 2008 through 2010, however, the
380	380	25 amount referred to in item (i) shall be increased, as a
381	381	26 percentage of the applicable employee payroll, in equal
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392	392	1 increments calculated from the sum of the required State
393	393	2 contribution for State fiscal year 2007 plus the applicable
394	394	3 portion of the State's total debt service payments for fiscal
395	395	4 year 2007 on the bonds issued in fiscal year 2003 for the
396	396	5 purposes of Section 7.2 of the General Obligation Bond Act, so
397	397	6 that, by State fiscal year 2011, the State is contributing at
398	398	7 the rate otherwise required under this Section.
399	399	8 (b-4) Beginning in fiscal year 2018, each employer under
400	400	9 this Article shall pay to the System a required contribution
401	401	10 determined as a percentage of projected payroll and sufficient
402	402	11 to produce an annual amount equal to:
403	403	12 (i) for each of fiscal years 2018, 2019, and 2020, the
404	404	13 defined benefit normal cost of the defined benefit plan,
405	405	14 less the employee contribution, for each employee of that
406	406	15 employer who has elected or who is deemed to have elected
407	407	16 the benefits under Section 1-161 or who has made the
408	408	17 election under subsection (b) of Section 1-161; for fiscal
409	409	18 year 2021 and each fiscal year thereafter, the defined
410	410	19 benefit normal cost of the defined benefit plan, less the
411	411	20 employee contribution, plus 2%, for each employee of that
412	412	21 employer who has elected or who is deemed to have elected
413	413	22 the benefits under Section 1-161 or who has made the
414	414	23 election under subsection (b) of Section 1-161; plus
415	415	24 (ii) the amount required for that fiscal year to
416	416	25 amortize any unfunded actuarial accrued liability
417	417	26 associated with the present value of liabilities
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428	428	1 attributable to the employer's account under Section
429	429	2 16-158.3, determined as a level percentage of payroll over
430	430	3 a 30-year rolling amortization period.
431	431	4 In determining contributions required under item (i) of
432	432	5 this subsection, the System shall determine an aggregate rate
433	433	6 for all employers, expressed as a percentage of projected
434	434	7 payroll.
435	435	8 In determining the contributions required under item (ii)
436	436	9 of this subsection, the amount shall be computed by the System
437	437	10 on the basis of the actuarial assumptions and tables used in
438	438	11 the most recent actuarial valuation of the System that is
439	439	12 available at the time of the computation.
440	440	13 The contributions required under this subsection (b-4)
441	441	14 shall be paid by an employer concurrently with that employer's
442	442	15 payroll payment period. The State, as the actual employer of
443	443	16 an employee, shall make the required contributions under this
444	444	17 subsection.
445	445	18 (c) Payment of the required State contributions and of all
446	446	19 pensions, retirement annuities, death benefits, refunds, and
447	447	20 other benefits granted under or assumed by this System, and
448	448	21 all expenses in connection with the administration and
449	449	22 operation thereof, are obligations of the State.
450	450	23 If members are paid from special trust or federal funds
451	451	24 which are administered by the employing unit, whether school
452	452	25 district or other unit, the employing unit shall pay to the
453	453	26 System from such funds the full accruing retirement costs
454	454
455	455
456	456
457	457
458	458
459	459	HB2564 - 12 - LRB104 05520 RPS 15549 b
460	460
461	461
462	462	HB2564- 13 -LRB104 05520 RPS 15549 b HB2564 - 13 - LRB104 05520 RPS 15549 b
463	463	HB2564 - 13 - LRB104 05520 RPS 15549 b
464	464	1 based upon that service, which, beginning July 1, 2017, shall
465	465	2 be at a rate, expressed as a percentage of salary, equal to the
466	466	3 total employer's normal cost, expressed as a percentage of
467	467	4 payroll, as determined by the System. Employer contributions,
468	468	5 based on salary paid to members from federal funds, may be
469	469	6 forwarded by the distributing agency of the State of Illinois
470	470	7 to the System prior to allocation, in an amount determined in
471	471	8 accordance with guidelines established by such agency and the
472	472	9 System. Any contribution for fiscal year 2015 collected as a
473	473	10 result of the change made by Public Act 98-674 shall be
474	474	11 considered a State contribution under subsection (b-3) of this
475	475	12 Section.
476	476	13 (d) Effective July 1, 1986, any employer of a teacher as
477	477	14 defined in paragraph (8) of Section 16-106 shall pay the
478	478	15 employer's normal cost of benefits based upon the teacher's
479	479	16 service, in addition to employee contributions, as determined
480	480	17 by the System. Such employer contributions shall be forwarded
481	481	18 monthly in accordance with guidelines established by the
482	482	19 System.
483	483	20 However, with respect to benefits granted under Section
484	484	21 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
485	485	22 of Section 16-106, the employer's contribution shall be 12%
486	486	23 (rather than 20%) of the member's highest annual salary rate
487	487	24 for each year of creditable service granted, and the employer
488	488	25 shall also pay the required employee contribution on behalf of
489	489	26 the teacher. For the purposes of Sections 16-133.4 and
490	490
491	491
492	492
493	493
494	494
495	495	HB2564 - 13 - LRB104 05520 RPS 15549 b
496	496
497	497
498	498	HB2564- 14 -LRB104 05520 RPS 15549 b HB2564 - 14 - LRB104 05520 RPS 15549 b
499	499	HB2564 - 14 - LRB104 05520 RPS 15549 b
500	500	1 16-133.5, a teacher as defined in paragraph (8) of Section
501	501	2 16-106 who is serving in that capacity while on leave of
502	502	3 absence from another employer under this Article shall not be
503	503	4 considered an employee of the employer from which the teacher
504	504	5 is on leave.
505	505	6 (e) Beginning July 1, 1998, every employer of a teacher
506	506	7 shall pay to the System an employer contribution computed as
507	507	8 follows:
508	508	9 (1) Beginning July 1, 1998 through June 30, 1999, the
509	509	10 employer contribution shall be equal to 0.3% of each
510	510	11 teacher's salary.
511	511	12 (2) Beginning July 1, 1999 and thereafter, the
512	512	13 employer contribution shall be equal to 0.58% of each
513	513	14 teacher's salary.
514	514	15 The school district or other employing unit may pay these
515	515	16 employer contributions out of any source of funding available
516	516	17 for that purpose and shall forward the contributions to the
517	517	18 System on the schedule established for the payment of member
518	518	19 contributions.
519	519	20 These employer contributions are intended to offset a
520	520	21 portion of the cost to the System of the increases in
521	521	22 retirement benefits resulting from Public Act 90-582.
522	522	23 Each employer of teachers is entitled to a credit against
523	523	24 the contributions required under this subsection (e) with
524	524	25 respect to salaries paid to teachers for the period January 1,
525	525	26 2002 through June 30, 2003, equal to the amount paid by that
526	526
527	527
528	528
529	529
530	530
531	531	HB2564 - 14 - LRB104 05520 RPS 15549 b
532	532
533	533
534	534	HB2564- 15 -LRB104 05520 RPS 15549 b HB2564 - 15 - LRB104 05520 RPS 15549 b
535	535	HB2564 - 15 - LRB104 05520 RPS 15549 b
536	536	1 employer under subsection (a-5) of Section 6.6 of the State
537	537	2 Employees Group Insurance Act of 1971 with respect to salaries
538	538	3 paid to teachers for that period.
539	539	4 The additional 1% employee contribution required under
540	540	5 Section 16-152 by Public Act 90-582 is the responsibility of
541	541	6 the teacher and not the teacher's employer, unless the
542	542	7 employer agrees, through collective bargaining or otherwise,
543	543	8 to make the contribution on behalf of the teacher.
544	544	9 If an employer is required by a contract in effect on May
545	545	10 1, 1998 between the employer and an employee organization to
546	546	11 pay, on behalf of all its full-time employees covered by this
547	547	12 Article, all mandatory employee contributions required under
548	548	13 this Article, then the employer shall be excused from paying
549	549	14 the employer contribution required under this subsection (e)
550	550	15 for the balance of the term of that contract. The employer and
551	551	16 the employee organization shall jointly certify to the System
552	552	17 the existence of the contractual requirement, in such form as
553	553	18 the System may prescribe. This exclusion shall cease upon the
554	554	19 termination, extension, or renewal of the contract at any time
555	555	20 after May 1, 1998.
556	556	21 (f) If the amount of a teacher's salary for any school year
557	557	22 used to determine final average salary exceeds the member's
558	558	23 annual full-time salary rate with the same employer for the
559	559	24 previous school year by more than 6%, the teacher's employer
560	560	25 shall pay to the System, in addition to all other payments
561	561	26 required under this Section and in accordance with guidelines
562	562
563	563
564	564
565	565
566	566
567	567	HB2564 - 15 - LRB104 05520 RPS 15549 b
568	568
569	569
570	570	HB2564- 16 -LRB104 05520 RPS 15549 b HB2564 - 16 - LRB104 05520 RPS 15549 b
571	571	HB2564 - 16 - LRB104 05520 RPS 15549 b
572	572	1 established by the System, the present value of the increase
573	573	2 in benefits resulting from the portion of the increase in
574	574	3 salary that is in excess of 6%. This present value shall be
575	575	4 computed by the System on the basis of the actuarial
576	576	5 assumptions and tables used in the most recent actuarial
577	577	6 valuation of the System that is available at the time of the
578	578	7 computation. If a teacher's salary for the 2005-2006 school
579	579	8 year is used to determine final average salary under this
580	580	9 subsection (f), then the changes made to this subsection (f)
581	581	10 by Public Act 94-1057 shall apply in calculating whether the
582	582	11 increase in his or her salary is in excess of 6%. For the
583	583	12 purposes of this Section, change in employment under Section
584	584	13 10-21.12 of the School Code on or after June 1, 2005 shall
585	585	14 constitute a change in employer. The System may require the
586	586	15 employer to provide any pertinent information or
587	587	16 documentation. The changes made to this subsection (f) by
588	588	17 Public Act 94-1111 apply without regard to whether the teacher
589	589	18 was in service on or after its effective date.
590	590	19 Whenever it determines that a payment is or may be
591	591	20 required under this subsection, the System shall calculate the
592	592	21 amount of the payment and bill the employer for that amount.
593	593	22 The bill shall specify the calculations used to determine the
594	594	23 amount due. If the employer disputes the amount of the bill, it
595	595	24 may, within 30 days after receipt of the bill, apply to the
596	596	25 System in writing for a recalculation. The application must
597	597	26 specify in detail the grounds of the dispute and, if the
598	598
599	599
600	600
601	601
602	602
603	603	HB2564 - 16 - LRB104 05520 RPS 15549 b
604	604
605	605
606	606	HB2564- 17 -LRB104 05520 RPS 15549 b HB2564 - 17 - LRB104 05520 RPS 15549 b
607	607	HB2564 - 17 - LRB104 05520 RPS 15549 b
608	608	1 employer asserts that the calculation is subject to subsection
609	609	2 (g), (g-5), (g-10), (g-15), (g-20), (g-25), or (h) of this
610	610	3 Section, must include an affidavit setting forth and attesting
611	611	4 to all facts within the employer's knowledge that are
612	612	5 pertinent to the applicability of that subsection. Upon
613	613	6 receiving a timely application for recalculation, the System
614	614	7 shall review the application and, if appropriate, recalculate
615	615	8 the amount due.
616	616	9 The employer contributions required under this subsection
617	617	10 (f) may be paid in the form of a lump sum within 90 days after
618	618	11 receipt of the bill. If the employer contributions are not
619	619	12 paid within 90 days after receipt of the bill, then interest
620	620	13 will be charged at a rate equal to the System's annual
621	621	14 actuarially assumed rate of return on investment compounded
622	622	15 annually from the 91st day after receipt of the bill. Payments
623	623	16 must be concluded within 3 years after the employer's receipt
624	624	17 of the bill.
625	625	18 (f-1) (Blank).
626	626	19 (g) This subsection (g) applies only to payments made or
627	627	20 salary increases given on or after June 1, 2005 but before July
628	628	21 1, 2011. The changes made by Public Act 94-1057 shall not
629	629	22 require the System to refund any payments received before July
630	630	23 31, 2006 (the effective date of Public Act 94-1057).
631	631	24 When assessing payment for any amount due under subsection
632	632	25 (f), the System shall exclude salary increases paid to
633	633	26 teachers under contracts or collective bargaining agreements
634	634
635	635
636	636
637	637
638	638
639	639	HB2564 - 17 - LRB104 05520 RPS 15549 b
640	640
641	641
642	642	HB2564- 18 -LRB104 05520 RPS 15549 b HB2564 - 18 - LRB104 05520 RPS 15549 b
643	643	HB2564 - 18 - LRB104 05520 RPS 15549 b
644	644	1 entered into, amended, or renewed before June 1, 2005.
645	645	2 When assessing payment for any amount due under subsection
646	646	3 (f), the System shall exclude salary increases paid to a
647	647	4 teacher at a time when the teacher is 10 or more years from
648	648	5 retirement eligibility under Section 16-132 or 16-133.2.
649	649	6 When assessing payment for any amount due under subsection
650	650	7 (f), the System shall exclude salary increases resulting from
651	651	8 overload work, including summer school, when the school
652	652	9 district has certified to the System, and the System has
653	653	10 approved the certification, that (i) the overload work is for
654	654	11 the sole purpose of classroom instruction in excess of the
655	655	12 standard number of classes for a full-time teacher in a school
656	656	13 district during a school year and (ii) the salary increases
657	657	14 are equal to or less than the rate of pay for classroom
658	658	15 instruction computed on the teacher's current salary and work
659	659	16 schedule.
660	660	17 When assessing payment for any amount due under subsection
661	661	18 (f), the System shall exclude a salary increase resulting from
662	662	19 a promotion (i) for which the employee is required to hold a
663	663	20 certificate or supervisory endorsement issued by the State
664	664	21 Teacher Certification Board that is a different certification
665	665	22 or supervisory endorsement than is required for the teacher's
666	666	23 previous position and (ii) to a position that has existed and
667	667	24 been filled by a member for no less than one complete academic
668	668	25 year and the salary increase from the promotion is an increase
669	669	26 that results in an amount no greater than the lesser of the
670	670
671	671
672	672
673	673
674	674
675	675	HB2564 - 18 - LRB104 05520 RPS 15549 b
676	676
677	677
678	678	HB2564- 19 -LRB104 05520 RPS 15549 b HB2564 - 19 - LRB104 05520 RPS 15549 b
679	679	HB2564 - 19 - LRB104 05520 RPS 15549 b
680	680	1 average salary paid for other similar positions in the
681	681	2 district requiring the same certification or the amount
682	682	3 stipulated in the collective bargaining agreement for a
683	683	4 similar position requiring the same certification.
684	684	5 When assessing payment for any amount due under subsection
685	685	6 (f), the System shall exclude any payment to the teacher from
686	686	7 the State of Illinois or the State Board of Education over
687	687	8 which the employer does not have discretion, notwithstanding
688	688	9 that the payment is included in the computation of final
689	689	10 average salary.
690	690	11 (g-5) When assessing payment for any amount due under
691	691	12 subsection (f), the System shall exclude salary increases
692	692	13 resulting from overload or stipend work performed in a school
693	693	14 year subsequent to a school year in which the employer was
694	694	15 unable to offer or allow to be conducted overload or stipend
695	695	16 work due to an emergency declaration limiting such activities.
696	696	17 (g-10) When assessing payment for any amount due under
697	697	18 subsection (f), the System shall exclude salary increases
698	698	19 resulting from increased instructional time that exceeded the
699	699	20 instructional time required during the 2019-2020 school year.
700	700	21 (g-15) When assessing payment for any amount due under
701	701	22 subsection (f), the System shall exclude salary increases
702	702	23 resulting from teaching summer school on or after May 1, 2021
703	703	24 and before September 15, 2022.
704	704	25 (g-20) When assessing payment for any amount due under
705	705	26 subsection (f), the System shall exclude salary increases
706	706
707	707
708	708
709	709
710	710
711	711	HB2564 - 19 - LRB104 05520 RPS 15549 b
712	712
713	713
714	714	HB2564- 20 -LRB104 05520 RPS 15549 b HB2564 - 20 - LRB104 05520 RPS 15549 b
715	715	HB2564 - 20 - LRB104 05520 RPS 15549 b
716	716	1 necessary to bring a school board in compliance with Public
717	717	2 Act 101-443 or this amendatory Act of the 103rd General
718	718	3 Assembly.
719	719	4 (g-25) When assessing payment for any amount due under
720	720	5 subsection (f), the System shall exclude salary increases
721	721	6 given on or after July 1, 2025 resulting from overload work,
722	722	7 including summer school, when the school district has
723	723	8 certified to the System, and the System has approved the
724	724	9 certification, that (i) the overload work is for the sole
725	725	10 purpose of classroom instruction in excess of the standard
726	726	11 number of classes for a full-time teacher in a school district
727	727	12 during a school year and (ii) the salary increases are equal to
728	728	13 or less than the rate of pay for classroom instruction
729	729	14 computed on the teacher's current salary and work schedule.
730	730	15 (h) When assessing payment for any amount due under
731	731	16 subsection (f), the System shall exclude any salary increase
732	732	17 described in subsection (g) of this Section given on or after
733	733	18 July 1, 2011 but before July 1, 2014 under a contract or
734	734	19 collective bargaining agreement entered into, amended, or
735	735	20 renewed on or after June 1, 2005 but before July 1, 2011.
736	736	21 Notwithstanding any other provision of this Section, any
737	737	22 payments made or salary increases given after June 30, 2014
738	738	23 shall be used in assessing payment for any amount due under
739	739	24 subsection (f) of this Section.
740	740	25 (i) The System shall prepare a report and file copies of
741	741	26 the report with the Governor and the General Assembly by
742	742
743	743
744	744
745	745
746	746
747	747	HB2564 - 20 - LRB104 05520 RPS 15549 b
748	748
749	749
750	750	HB2564- 21 -LRB104 05520 RPS 15549 b HB2564 - 21 - LRB104 05520 RPS 15549 b
751	751	HB2564 - 21 - LRB104 05520 RPS 15549 b
752	752	1 January 1, 2007 that contains all of the following
753	753	2 information:
754	754	3 (1) The number of recalculations required by the
755	755	4 changes made to this Section by Public Act 94-1057 for
756	756	5 each employer.
757	757	6 (2) The dollar amount by which each employer's
758	758	7 contribution to the System was changed due to
759	759	8 recalculations required by Public Act 94-1057.
760	760	9 (3) The total amount the System received from each
761	761	10 employer as a result of the changes made to this Section by
762	762	11 Public Act 94-4.
763	763	12 (4) The increase in the required State contribution
764	764	13 resulting from the changes made to this Section by Public
765	765	14 Act 94-1057.
766	766	15 (i-5) For school years beginning on or after July 1, 2017,
767	767	16 if the amount of a participant's salary for any school year
768	768	17 exceeds the amount of the salary set for the Governor, the
769	769	18 participant's employer shall pay to the System, in addition to
770	770	19 all other payments required under this Section and in
771	771	20 accordance with guidelines established by the System, an
772	772	21 amount determined by the System to be equal to the employer
773	773	22 normal cost, as established by the System and expressed as a
774	774	23 total percentage of payroll, multiplied by the amount of
775	775	24 salary in excess of the amount of the salary set for the
776	776	25 Governor. This amount shall be computed by the System on the
777	777	26 basis of the actuarial assumptions and tables used in the most
778	778
779	779
780	780
781	781
782	782
783	783	HB2564 - 21 - LRB104 05520 RPS 15549 b
784	784
785	785
786	786	HB2564- 22 -LRB104 05520 RPS 15549 b HB2564 - 22 - LRB104 05520 RPS 15549 b
787	787	HB2564 - 22 - LRB104 05520 RPS 15549 b
788	788	1 recent actuarial valuation of the System that is available at
789	789	2 the time of the computation. The System may require the
790	790	3 employer to provide any pertinent information or
791	791	4 documentation.
792	792	5 Whenever it determines that a payment is or may be
793	793	6 required under this subsection, the System shall calculate the
794	794	7 amount of the payment and bill the employer for that amount.
795	795	8 The bill shall specify the calculations used to determine the
796	796	9 amount due. If the employer disputes the amount of the bill, it
797	797	10 may, within 30 days after receipt of the bill, apply to the
798	798	11 System in writing for a recalculation. The application must
799	799	12 specify in detail the grounds of the dispute. Upon receiving a
800	800	13 timely application for recalculation, the System shall review
801	801	14 the application and, if appropriate, recalculate the amount
802	802	15 due.
803	803	16 The employer contributions required under this subsection
804	804	17 may be paid in the form of a lump sum within 90 days after
805	805	18 receipt of the bill. If the employer contributions are not
806	806	19 paid within 90 days after receipt of the bill, then interest
807	807	20 will be charged at a rate equal to the System's annual
808	808	21 actuarially assumed rate of return on investment compounded
809	809	22 annually from the 91st day after receipt of the bill. Payments
810	810	23 must be concluded within 3 years after the employer's receipt
811	811	24 of the bill.
812	812	25 (j) For purposes of determining the required State
813	813	26 contribution to the System, the value of the System's assets
814	814
815	815
816	816
817	817
818	818
819	819	HB2564 - 22 - LRB104 05520 RPS 15549 b
820	820
821	821
822	822	HB2564- 23 -LRB104 05520 RPS 15549 b HB2564 - 23 - LRB104 05520 RPS 15549 b
823	823	HB2564 - 23 - LRB104 05520 RPS 15549 b
824	824	1 shall be equal to the actuarial value of the System's assets,
825	825	2 which shall be calculated as follows:
826	826	3 As of June 30, 2008, the actuarial value of the System's
827	827	4 assets shall be equal to the market value of the assets as of
828	828	5 that date. In determining the actuarial value of the System's
829	829	6 assets for fiscal years after June 30, 2008, any actuarial
830	830	7 gains or losses from investment return incurred in a fiscal
831	831	8 year shall be recognized in equal annual amounts over the
832	832	9 5-year period following that fiscal year.
833	833	10 (k) For purposes of determining the required State
834	834	11 contribution to the system for a particular year, the
835	835	12 actuarial value of assets shall be assumed to earn a rate of
836	836	13 return equal to the system's actuarially assumed rate of
837	837	14 return.
838	838	15 (Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21;
839	839	16 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff.
840	840	17 8-11-23; 103-588, eff. 6-5-24.)
841	841
842	842
843	843
844	844
845	845
846	846	HB2564 - 23 - LRB104 05520 RPS 15549 b