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Illinois Senate Bill SB0683

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0683 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0683 Introduced 1/24/2025, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-131 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State. LRB104 06991 RPS 17028 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0683 Introduced 1/24/2025, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: 40 ILCS 5/14-131 40 ILCS 5/14-131 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State. LRB104 06991 RPS 17028 b LRB104 06991 RPS 17028 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0683 Introduced 1/24/2025, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/14-131 40 ILCS 5/14-131
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55 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
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1111 1 AN ACT concerning public employee benefits.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Illinois Pension Code is amended by
1515 5 changing Section 14-131 as follows:
1616 6 (40 ILCS 5/14-131)
1717 7 Sec. 14-131. Contributions by State.
1818 8 (a) The The State shall make contributions to the System
1919 9 by appropriations of amounts which, together with other
2020 10 employer contributions from trust, federal, and other funds,
2121 11 employee contributions, investment income, and other income,
2222 12 will be sufficient to meet the cost of maintaining and
2323 13 administering the System on a 90% funded basis in accordance
2424 14 with actuarial recommendations.
2525 15 For the purposes of this Section and Section 14-135.08,
2626 16 references to State contributions refer only to employer
2727 17 contributions and do not include employee contributions that
2828 18 are picked up or otherwise paid by the State or a department on
2929 19 behalf of the employee.
3030 20 (b) The Board shall determine the total amount of State
3131 21 contributions required for each fiscal year on the basis of
3232 22 the actuarial tables and other assumptions adopted by the
3333 23 Board, using the formula in subsection (e).
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3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0683 Introduced 1/24/2025, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
3838 40 ILCS 5/14-131 40 ILCS 5/14-131
3939 40 ILCS 5/14-131
4040 Amends the State Employee Article of the Illinois Pension Code. Makes a technical change in a Section concerning contributions by the State.
4141 LRB104 06991 RPS 17028 b LRB104 06991 RPS 17028 b
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4343 A BILL FOR
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6868 1 The Board shall also determine a State contribution rate
6969 2 for each fiscal year, expressed as a percentage of payroll,
7070 3 based on the total required State contribution for that fiscal
7171 4 year (less the amount received by the System from
7272 5 appropriations under Section 8.12 of the State Finance Act and
7373 6 Section 1 of the State Pension Funds Continuing Appropriation
7474 7 Act, if any, for the fiscal year ending on the June 30
7575 8 immediately preceding the applicable November 15 certification
7676 9 deadline), the estimated payroll (including all forms of
7777 10 compensation) for personal services rendered by eligible
7878 11 employees, and the recommendations of the actuary.
7979 12 For the purposes of this Section and Section 14.1 of the
8080 13 State Finance Act, the term "eligible employees" includes
8181 14 employees who participate in the System, persons who may elect
8282 15 to participate in the System but have not so elected, persons
8383 16 who are serving a qualifying period that is required for
8484 17 participation, and annuitants employed by a department as
8585 18 described in subdivision (a)(1) or (a)(2) of Section 14-111.
8686 19 (c) Contributions shall be made by the several departments
8787 20 for each pay period by warrants drawn by the State Comptroller
8888 21 against their respective funds or appropriations based upon
8989 22 vouchers stating the amount to be so contributed. These
9090 23 amounts shall be based on the full rate certified by the Board
9191 24 under Section 14-135.08 for that fiscal year. From March 5,
9292 25 2004 (the effective date of Public Act 93-665) through the
9393 26 payment of the final payroll from fiscal year 2004
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104104 1 appropriations, the several departments shall not make
105105 2 contributions for the remainder of fiscal year 2004 but shall
106106 3 instead make payments as required under subsection (a-1) of
107107 4 Section 14.1 of the State Finance Act. The several departments
108108 5 shall resume those contributions at the commencement of fiscal
109109 6 year 2005.
110110 7 (c-1) Notwithstanding subsection (c) of this Section, for
111111 8 fiscal years 2010, 2012, and each fiscal year thereafter,
112112 9 contributions by the several departments are not required to
113113 10 be made for General Revenue Funds payrolls processed by the
114114 11 Comptroller. Payrolls paid by the several departments from all
115115 12 other State funds must continue to be processed pursuant to
116116 13 subsection (c) of this Section.
117117 14 (c-2) Unless otherwise directed by the Comptroller under
118118 15 subsection (c-3), the Board shall submit vouchers for payment
119119 16 of State contributions to the System for the applicable month
120120 17 on the 15th day of each month, or as soon thereafter as may be
121121 18 practicable. The amount vouchered for a monthly payment shall
122122 19 total one-twelfth of the fiscal year General Revenue Fund
123123 20 contribution as certified by the System pursuant to Section
124124 21 14-135.08 of this Code.
125125 22 (c-3) Beginning in State fiscal year 2025, if the
126126 23 Comptroller requests that the Board submit, during a State
127127 24 fiscal year, vouchers for multiple monthly payments for
128128 25 advance payment of State contributions due to the System for
129129 26 that State fiscal year, then the Board shall submit those
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140140 1 additional vouchers as directed by the Comptroller,
141141 2 notwithstanding subsection (c-2). Unless an act of
142142 3 appropriations provides otherwise, nothing in this Section
143143 4 authorizes the Board to submit, in a State fiscal year,
144144 5 vouchers for the payment of State contributions to the System
145145 6 in an amount that exceeds the rate of payroll that is certified
146146 7 by the System under Section 14-135.08 for that State fiscal
147147 8 year.
148148 9 (d) If an employee is paid from trust funds or federal
149149 10 funds, the department or other employer shall pay employer
150150 11 contributions from those funds to the System at the certified
151151 12 rate, unless the terms of the trust or the federal-State
152152 13 agreement preclude the use of the funds for that purpose, in
153153 14 which case the required employer contributions shall be paid
154154 15 by the State.
155155 16 (e) For State fiscal years 2012 through 2045, the minimum
156156 17 contribution to the System to be made by the State for each
157157 18 fiscal year shall be an amount determined by the System to be
158158 19 sufficient to bring the total assets of the System up to 90% of
159159 20 the total actuarial liabilities of the System by the end of
160160 21 State fiscal year 2045. In making these determinations, the
161161 22 required State contribution shall be calculated each year as a
162162 23 level percentage of payroll over the years remaining to and
163163 24 including fiscal year 2045 and shall be determined under the
164164 25 projected unit credit actuarial cost method.
165165 26 A change in an actuarial or investment assumption that
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176176 1 increases or decreases the required State contribution and
177177 2 first applies in State fiscal year 2018 or thereafter shall be
178178 3 implemented in equal annual amounts over a 5-year period
179179 4 beginning in the State fiscal year in which the actuarial
180180 5 change first applies to the required State contribution.
181181 6 A change in an actuarial or investment assumption that
182182 7 increases or decreases the required State contribution and
183183 8 first applied to the State contribution in fiscal year 2014,
184184 9 2015, 2016, or 2017 shall be implemented:
185185 10 (i) as already applied in State fiscal years before
186186 11 2018; and
187187 12 (ii) in the portion of the 5-year period beginning in
188188 13 the State fiscal year in which the actuarial change first
189189 14 applied that occurs in State fiscal year 2018 or
190190 15 thereafter, by calculating the change in equal annual
191191 16 amounts over that 5-year period and then implementing it
192192 17 at the resulting annual rate in each of the remaining
193193 18 fiscal years in that 5-year period.
194194 19 For State fiscal years 1996 through 2005, the State
195195 20 contribution to the System, as a percentage of the applicable
196196 21 employee payroll, shall be increased in equal annual
197197 22 increments so that by State fiscal year 2011, the State is
198198 23 contributing at the rate required under this Section; except
199199 24 that (i) for State fiscal year 1998, for all purposes of this
200200 25 Code and any other law of this State, the certified percentage
201201 26 of the applicable employee payroll shall be 5.052% for
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212212 1 employees earning eligible creditable service under Section
213213 2 14-110 and 6.500% for all other employees, notwithstanding any
214214 3 contrary certification made under Section 14-135.08 before
215215 4 July 7, 1997 (the effective date of Public Act 90-65), and (ii)
216216 5 in the following specified State fiscal years, the State
217217 6 contribution to the System shall not be less than the
218218 7 following indicated percentages of the applicable employee
219219 8 payroll, even if the indicated percentage will produce a State
220220 9 contribution in excess of the amount otherwise required under
221221 10 this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
222222 11 FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
223223 12 and 10.8% in FY 2004.
224224 13 Beginning in State fiscal year 2046, the minimum State
225225 14 contribution for each fiscal year shall be the amount needed
226226 15 to maintain the total assets of the System at 90% of the total
227227 16 actuarial liabilities of the System.
228228 17 Amounts received by the System pursuant to Section 25 of
229229 18 the Budget Stabilization Act or Section 8.12 of the State
230230 19 Finance Act in any fiscal year do not reduce and do not
231231 20 constitute payment of any portion of the minimum State
232232 21 contribution required under this Article in that fiscal year.
233233 22 Such amounts shall not reduce, and shall not be included in the
234234 23 calculation of, the required State contributions under this
235235 24 Article in any future year until the System has reached a
236236 25 funding ratio of at least 90%. A reference in this Article to
237237 26 the "required State contribution" or any substantially similar
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248248 1 term does not include or apply to any amounts payable to the
249249 2 System under Section 25 of the Budget Stabilization Act.
250250 3 Notwithstanding any other provision of this Section, the
251251 4 required State contribution for State fiscal year 2005 and for
252252 5 fiscal year 2008 and each fiscal year thereafter, as
253253 6 calculated under this Section and certified under Section
254254 7 14-135.08, shall not exceed an amount equal to (i) the amount
255255 8 of the required State contribution that would have been
256256 9 calculated under this Section for that fiscal year if the
257257 10 System had not received any payments under subsection (d) of
258258 11 Section 7.2 of the General Obligation Bond Act, minus (ii) the
259259 12 portion of the State's total debt service payments for that
260260 13 fiscal year on the bonds issued in fiscal year 2003 for the
261261 14 purposes of that Section 7.2, as determined and certified by
262262 15 the Comptroller, that is the same as the System's portion of
263263 16 the total moneys distributed under subsection (d) of Section
264264 17 7.2 of the General Obligation Bond Act.
265265 18 (f) (Blank).
266266 19 (g) For purposes of determining the required State
267267 20 contribution to the System, the value of the System's assets
268268 21 shall be equal to the actuarial value of the System's assets,
269269 22 which shall be calculated as follows:
270270 23 As of June 30, 2008, the actuarial value of the System's
271271 24 assets shall be equal to the market value of the assets as of
272272 25 that date. In determining the actuarial value of the System's
273273 26 assets for fiscal years after June 30, 2008, any actuarial
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284284 1 gains or losses from investment return incurred in a fiscal
285285 2 year shall be recognized in equal annual amounts over the
286286 3 5-year period following that fiscal year.
287287 4 (h) For purposes of determining the required State
288288 5 contribution to the System for a particular year, the
289289 6 actuarial value of assets shall be assumed to earn a rate of
290290 7 return equal to the System's actuarially assumed rate of
291291 8 return.
292292 9 (i) (Blank).
293293 10 (j) (Blank).
294294 11 (k) For fiscal year 2012 and each fiscal year thereafter,
295295 12 after the submission of all payments for eligible employees
296296 13 from personal services line items paid from the General
297297 14 Revenue Fund in the fiscal year have been made, the
298298 15 Comptroller shall provide to the System a certification of the
299299 16 sum of all expenditures in the fiscal year for personal
300300 17 services. Upon receipt of the certification, the System shall
301301 18 determine the amount due to the System based on the full rate
302302 19 certified by the Board under Section 14-135.08 for the fiscal
303303 20 year in order to meet the State's obligation under this
304304 21 Section. The System shall compare this amount due to the
305305 22 amount received by the System for the fiscal year. If the
306306 23 amount due is more than the amount received, the difference
307307 24 shall be termed the "Prior Fiscal Year Shortfall" for purposes
308308 25 of this Section, and the Prior Fiscal Year Shortfall shall be
309309 26 satisfied under Section 1.2 of the State Pension Funds
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