Bill Amendment: IL SB1814 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PEN CD-EMPLOYER CONTRIBUTIONS
Status: 2019-01-09 - Session Sine Die [SB1814 Detail]
Download: Illinois-2017-SB1814-Senate_Amendment_001.html
Bill Title: PEN CD-EMPLOYER CONTRIBUTIONS
Status: 2019-01-09 - Session Sine Die [SB1814 Detail]
Download: Illinois-2017-SB1814-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 1814
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2 | AMENDMENT NO. ______. Amend Senate Bill 1814 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by adding | ||||||
5 | Sections 16-106.4a and 16-106.4b and by changing Section 16-158 | ||||||
6 | as follows:
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7 | (40 ILCS 5/16-106.4a new) | ||||||
8 | Sec. 16-106.4a. Tier 1 member. "Tier 1 member": A member | ||||||
9 | under this Article who first became a member or participant | ||||||
10 | before January 1, 2011 under any reciprocal retirement system | ||||||
11 | or pension fund established under this Code other than a | ||||||
12 | retirement system or pension fund established under Article 2, | ||||||
13 | 3, 4, 5, 6, or 18 of this Code.
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14 | (40 ILCS 5/16-106.4b new) | ||||||
15 | Sec. 16-106.4b. Tier 2 member. "Tier 2 member": A member of |
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1 | the System who first becomes a member under this Article on or | ||||||
2 | after January 1, 2011 and who is not a Tier 1 member.
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3 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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4 | (Text of Section WITHOUT the changes made by P.A. 98-599, | ||||||
5 | which has been held unconstitutional)
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6 | Sec. 16-158. Contributions by State and other employing | ||||||
7 | units.
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8 | (a) The State shall make contributions to the System by | ||||||
9 | means of
appropriations from the Common School Fund and other | ||||||
10 | State funds of amounts
which, together with other employer | ||||||
11 | contributions, employee contributions,
investment income, and | ||||||
12 | other income, will be sufficient to meet the cost of
| ||||||
13 | maintaining and administering the System on a 90% funded basis | ||||||
14 | in accordance
with actuarial recommendations.
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15 | The Board shall determine the amount of State contributions | ||||||
16 | required for
each fiscal year on the basis of the actuarial | ||||||
17 | tables and other assumptions
adopted by the Board and the | ||||||
18 | recommendations of the actuary, using the formula
in subsection | ||||||
19 | (b-3).
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20 | (a-1) Annually, on or before November 15 until November 15, | ||||||
21 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
22 | required State contribution for the coming fiscal
year. The | ||||||
23 | certification under this subsection (a-1) shall include a copy | ||||||
24 | of the actuarial recommendations
upon which it is based and | ||||||
25 | shall specifically identify the System's projected State |
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1 | normal cost for that fiscal year.
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2 | On or before May 1, 2004, the Board shall recalculate and | ||||||
3 | recertify to
the Governor the amount of the required State | ||||||
4 | contribution to the System for
State fiscal year 2005, taking | ||||||
5 | into account the amounts appropriated to and
received by the | ||||||
6 | System under subsection (d) of Section 7.2 of the General
| ||||||
7 | Obligation Bond Act.
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8 | On or before July 1, 2005, the Board shall recalculate and | ||||||
9 | recertify
to the Governor the amount of the required State
| ||||||
10 | contribution to the System for State fiscal year 2006, taking | ||||||
11 | into account the changes in required State contributions made | ||||||
12 | by this amendatory Act of the 94th General Assembly.
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13 | On or before April 1, 2011, the Board shall recalculate and | ||||||
14 | recertify to the Governor the amount of the required State | ||||||
15 | contribution to the System for State fiscal year 2011, applying | ||||||
16 | the changes made by Public Act 96-889 to the System's assets | ||||||
17 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
18 | was approved on that date. | ||||||
19 | (a-5) On or before November 1 of each year, beginning | ||||||
20 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
21 | the Governor, and the General Assembly a proposed certification | ||||||
22 | of the amount of the required State contribution to the System | ||||||
23 | for the next fiscal year, along with all of the actuarial | ||||||
24 | assumptions, calculations, and data upon which that proposed | ||||||
25 | certification is based. On or before January 1 of each year, | ||||||
26 | beginning January 1, 2013, the State Actuary shall issue a |
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1 | preliminary report concerning the proposed certification and | ||||||
2 | identifying, if necessary, recommended changes in actuarial | ||||||
3 | assumptions that the Board must consider before finalizing its | ||||||
4 | certification of the required State contributions. On or before | ||||||
5 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
6 | shall certify to the Governor and the General Assembly the | ||||||
7 | amount of the required State contribution for the next fiscal | ||||||
8 | year. The Board's certification must note any deviations from | ||||||
9 | the State Actuary's recommended changes, the reason or reasons | ||||||
10 | for not following the State Actuary's recommended changes, and | ||||||
11 | the fiscal impact of not following the State Actuary's | ||||||
12 | recommended changes on the required State contribution. | ||||||
13 | (b) Through State fiscal year 1995, the State contributions | ||||||
14 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
15 | the School Code.
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16 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
17 | of each month,
or as soon thereafter as may be practicable, the | ||||||
18 | Board shall submit vouchers
for payment of State contributions | ||||||
19 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
20 | required annual State contribution certified under
subsection | ||||||
21 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
22 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
23 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
24 | excess of the fiscal year 2004
certified contribution amount | ||||||
25 | determined under this Section
after taking into consideration | ||||||
26 | the transfer to the System
under subsection (a) of Section |
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1 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
2 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
3 | funds appropriated to the System for that
fiscal year.
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4 | If in any month the amount remaining unexpended from all | ||||||
5 | other appropriations
to the System for the applicable fiscal | ||||||
6 | year (including the appropriations to
the System under Section | ||||||
7 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
8 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
9 | amount
lawfully vouchered under this subsection, the | ||||||
10 | difference shall be paid from the
Common School Fund under the | ||||||
11 | continuing appropriation authority provided in
Section 1.1 of | ||||||
12 | the State Pension Funds Continuing Appropriation Act.
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13 | (b-2) Allocations from the Common School Fund apportioned | ||||||
14 | to school
districts not coming under this System shall not be | ||||||
15 | diminished or affected by
the provisions of this Article.
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16 | (b-3) For State fiscal years 2012 through 2045, the minimum | ||||||
17 | contribution
to the System to be made by the State for each | ||||||
18 | fiscal year shall be an amount
determined by the System to be | ||||||
19 | sufficient to bring the total assets of the
System up to 90% of | ||||||
20 | the total actuarial liabilities of the System by the end of
| ||||||
21 | State fiscal year 2045. In making these determinations, the | ||||||
22 | required State
contribution shall be calculated each year as a | ||||||
23 | level percentage of payroll
over the years remaining to and | ||||||
24 | including fiscal year 2045 and shall be
determined under the | ||||||
25 | projected unit credit actuarial cost method.
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26 | For State fiscal years 1996 through 2005, the State |
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1 | contribution to the
System, as a percentage of the applicable | ||||||
2 | employee payroll, shall be increased
in equal annual increments | ||||||
3 | so that by State fiscal year 2011, the State is
contributing at | ||||||
4 | the rate required under this Section; except that in the
| ||||||
5 | following specified State fiscal years, the State contribution | ||||||
6 | to the System
shall not be less than the following indicated | ||||||
7 | percentages of the applicable
employee payroll, even if the | ||||||
8 | indicated percentage will produce a State
contribution in | ||||||
9 | excess of the amount otherwise required under this subsection
| ||||||
10 | and subsection (a), and notwithstanding any contrary | ||||||
11 | certification made under
subsection (a-1) before the effective | ||||||
12 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
13 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
14 | 2003; and
13.56% in FY 2004.
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15 | Notwithstanding any other provision of this Article, the | ||||||
16 | total required State
contribution for State fiscal year 2006 is | ||||||
17 | $534,627,700.
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18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution for State fiscal year 2007 is | ||||||
20 | $738,014,500.
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21 | For each of State fiscal years 2008 through 2009, the State | ||||||
22 | contribution to
the System, as a percentage of the applicable | ||||||
23 | employee payroll, shall be
increased in equal annual increments | ||||||
24 | from the required State contribution for State fiscal year | ||||||
25 | 2007, so that by State fiscal year 2011, the
State is | ||||||
26 | contributing at the rate otherwise required under this Section.
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1 | Notwithstanding any other provision of this Article, the | ||||||
2 | total required State contribution for State fiscal year 2010 is | ||||||
3 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
4 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
5 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
6 | expenses determined by the System's share of total bond | ||||||
7 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
8 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
9 | due to the issuance of discounted bonds, if applicable. | ||||||
10 | Notwithstanding any other provision of this Article, the
| ||||||
11 | total required State contribution for State fiscal year 2011 is
| ||||||
12 | the amount recertified by the System on or before April 1, 2011 | ||||||
13 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
14 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
15 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
16 | pro rata share of bond sale
expenses determined by the System's | ||||||
17 | share of total bond
proceeds, (ii) any amounts received from | ||||||
18 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
19 | reduction in bond proceeds
due to the issuance of discounted | ||||||
20 | bonds, if applicable. This amount shall include, in addition to | ||||||
21 | the amount certified by the System, an amount necessary to meet | ||||||
22 | employer contributions required by the State as an employer | ||||||
23 | under paragraph (e) of this Section, which may also be used by | ||||||
24 | the System for contributions required by paragraph (a) of | ||||||
25 | Section 16-127. | ||||||
26 | Beginning in State fiscal year 2046, the minimum State |
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1 | contribution for
each fiscal year shall be the amount needed to | ||||||
2 | maintain the total assets of
the System at 90% of the total | ||||||
3 | actuarial liabilities of the System.
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4 | Amounts received by the System pursuant to Section 25 of | ||||||
5 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
6 | Finance Act in any fiscal year do not reduce and do not | ||||||
7 | constitute payment of any portion of the minimum State | ||||||
8 | contribution required under this Article in that fiscal year. | ||||||
9 | Such amounts shall not reduce, and shall not be included in the | ||||||
10 | calculation of, the required State contributions under this | ||||||
11 | Article in any future year until the System has reached a | ||||||
12 | funding ratio of at least 90%. A reference in this Article to | ||||||
13 | the "required State contribution" or any substantially similar | ||||||
14 | term does not include or apply to any amounts payable to the | ||||||
15 | System under Section 25 of the Budget Stabilization Act. | ||||||
16 | Notwithstanding any other provision of this Section, the | ||||||
17 | required State
contribution for State fiscal year 2005 and for | ||||||
18 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
19 | under this Section and
certified under subsection (a-1), shall | ||||||
20 | not exceed an amount equal to (i) the
amount of the required | ||||||
21 | State contribution that would have been calculated under
this | ||||||
22 | Section for that fiscal year if the System had not received any | ||||||
23 | payments
under subsection (d) of Section 7.2 of the General | ||||||
24 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
25 | total debt service payments for that fiscal
year on the bonds | ||||||
26 | issued in fiscal year 2003 for the purposes of that Section |
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1 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
2 | the same as the System's portion of
the total moneys | ||||||
3 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
4 | Obligation Bond Act. In determining this maximum for State | ||||||
5 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
6 | in item (i) shall be increased, as a percentage of the | ||||||
7 | applicable employee payroll, in equal increments calculated | ||||||
8 | from the sum of the required State contribution for State | ||||||
9 | fiscal year 2007 plus the applicable portion of the State's | ||||||
10 | total debt service payments for fiscal year 2007 on the bonds | ||||||
11 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
12 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
13 | 2011, the
State is contributing at the rate otherwise required | ||||||
14 | under this Section.
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15 | (c) Payment of the required State contributions and of all | ||||||
16 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
17 | other benefits granted
under or assumed by this System, and all | ||||||
18 | expenses in connection with the
administration and operation | ||||||
19 | thereof, are obligations of the State.
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20 | If members are paid from special trust or federal funds | ||||||
21 | which are
administered by the employing unit, whether school | ||||||
22 | district or other
unit, the employing unit shall pay to the | ||||||
23 | System from such
funds the full accruing retirement costs based | ||||||
24 | upon that
service, which, beginning July 1, 2014, shall be at a | ||||||
25 | rate, expressed as a percentage of salary, equal to the total | ||||||
26 | minimum contribution
to the System to be made by the State for |
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1 | that fiscal year, including both normal cost and unfunded | ||||||
2 | liability components, expressed as a percentage of payroll, as | ||||||
3 | determined by the System under subsection (b-3) of this | ||||||
4 | Section. Employer contributions, based on
salary paid to | ||||||
5 | members from federal funds, may be forwarded by the | ||||||
6 | distributing
agency of the State of Illinois to the System | ||||||
7 | prior to allocation, in an
amount determined in accordance with | ||||||
8 | guidelines established by such
agency and the System. Any | ||||||
9 | contribution for fiscal year 2015 collected as a result of the | ||||||
10 | change made by this amendatory Act of the 98th General Assembly | ||||||
11 | shall be considered a State contribution under subsection (b-3) | ||||||
12 | of this Section.
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13 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
14 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
15 | employer's normal cost
of benefits based upon the teacher's | ||||||
16 | service, in addition to
employee contributions, as determined | ||||||
17 | by the System. Such employer
contributions shall be forwarded | ||||||
18 | monthly in accordance with guidelines
established by the | ||||||
19 | System.
| ||||||
20 | However, with respect to benefits granted under Section | ||||||
21 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
22 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
23 | (rather than 20%) of the member's
highest annual salary rate | ||||||
24 | for each year of creditable service granted, and
the employer | ||||||
25 | shall also pay the required employee contribution on behalf of
| ||||||
26 | the teacher. For the purposes of Sections 16-133.4 and |
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1 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
2 | 16-106 who is serving in that capacity
while on leave of | ||||||
3 | absence from another employer under this Article shall not
be | ||||||
4 | considered an employee of the employer from which the teacher | ||||||
5 | is on leave.
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6 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
7 | shall pay to the System an employer contribution computed as | ||||||
8 | follows:
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9 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
10 | employer
contribution shall be equal to 0.3% of each | ||||||
11 | teacher's salary.
| ||||||
12 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
13 | contribution shall be equal to 0.58% of each teacher's | ||||||
14 | salary.
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15 | The school district or other employing unit may pay these | ||||||
16 | employer
contributions out of any source of funding available | ||||||
17 | for that purpose and
shall forward the contributions to the | ||||||
18 | System on the schedule established
for the payment of member | ||||||
19 | contributions.
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20 | These employer contributions are intended to offset a | ||||||
21 | portion of the cost
to the System of the increases in | ||||||
22 | retirement benefits resulting from this
amendatory Act of 1998.
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23 | Each employer of teachers is entitled to a credit against | ||||||
24 | the contributions
required under this subsection (e) with | ||||||
25 | respect to salaries paid to teachers
for the period January 1, | ||||||
26 | 2002 through June 30, 2003, equal to the amount paid
by that |
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| |||||||
1 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
2 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
3 | paid to teachers for that
period.
| ||||||
4 | The additional 1% employee contribution required under | ||||||
5 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
6 | responsibility of the teacher and not the
teacher's employer, | ||||||
7 | unless the employer agrees, through collective bargaining
or | ||||||
8 | otherwise, to make the contribution on behalf of the teacher.
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9 | If an employer is required by a contract in effect on May | ||||||
10 | 1, 1998 between the
employer and an employee organization to | ||||||
11 | pay, on behalf of all its full-time
employees
covered by this | ||||||
12 | Article, all mandatory employee contributions required under
| ||||||
13 | this Article, then the employer shall be excused from paying | ||||||
14 | the employer
contribution required under this subsection (e) | ||||||
15 | for the balance of the term
of that contract. The employer and | ||||||
16 | the employee organization shall jointly
certify to the System | ||||||
17 | the existence of the contractual requirement, in such
form as | ||||||
18 | the System may prescribe. This exclusion shall cease upon the
| ||||||
19 | termination, extension, or renewal of the contract at any time | ||||||
20 | after May 1,
1998.
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21 | (f) If the amount of a teacher's salary for any school year | ||||||
22 | beginning on or after June 1, 2005 and before July 1, 2018 used | ||||||
23 | to determine final average salary exceeds the member's annual | ||||||
24 | full-time salary rate with the same employer for the previous | ||||||
25 | school year by more than 6%, the teacher's employer shall pay | ||||||
26 | to the System, in addition to all other payments required under |
| |||||||
| |||||||
1 | this Section and in accordance with guidelines established by | ||||||
2 | the System, the present value of the increase in benefits | ||||||
3 | resulting from the portion of the increase in salary that is in | ||||||
4 | excess of 6%. This present value shall be computed by the | ||||||
5 | System on the basis of the actuarial assumptions and tables | ||||||
6 | used in the most recent actuarial valuation of the System that | ||||||
7 | is available at the time of the computation. If a teacher's | ||||||
8 | salary for the 2005-2006 school year is used to determine final | ||||||
9 | average salary under this subsection (f), then the changes made | ||||||
10 | to this subsection (f) by Public Act 94-1057 shall apply in | ||||||
11 | calculating whether the increase in his or her salary is in | ||||||
12 | excess of 6%. For the purposes of this Section, change in | ||||||
13 | employment under Section 10-21.12 of the School Code on or | ||||||
14 | after June 1, 2005 shall constitute a change in employer. The | ||||||
15 | System may require the employer to provide any pertinent | ||||||
16 | information or documentation.
The changes made to this | ||||||
17 | subsection (f) by this amendatory Act of the 94th General | ||||||
18 | Assembly apply without regard to whether the teacher was in | ||||||
19 | service on or after its effective date.
| ||||||
20 | Whenever it determines that a payment is or may be required | ||||||
21 | under this subsection, the System shall calculate the amount of | ||||||
22 | the payment and bill the employer for that amount. The bill | ||||||
23 | shall specify the calculations used to determine the amount | ||||||
24 | due. If the employer disputes the amount of the bill, it may, | ||||||
25 | within 30 days after receipt of the bill, apply to the System | ||||||
26 | in writing for a recalculation. The application must specify in |
| |||||||
| |||||||
1 | detail the grounds of the dispute and, if the employer asserts | ||||||
2 | that the calculation is subject to subsection (g) or (h) of | ||||||
3 | this Section, must include an affidavit setting forth and | ||||||
4 | attesting to all facts within the employer's knowledge that are | ||||||
5 | pertinent to the applicability of that subsection. Upon | ||||||
6 | receiving a timely application for recalculation, the System | ||||||
7 | shall review the application and, if appropriate, recalculate | ||||||
8 | the amount due.
| ||||||
9 | The employer contributions required under this subsection | ||||||
10 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
11 | receipt of the bill. If the employer contributions are not paid | ||||||
12 | within 90 days after receipt of the bill, then interest will be | ||||||
13 | charged at a rate equal to the System's annual actuarially | ||||||
14 | assumed rate of return on investment compounded annually from | ||||||
15 | the 91st day after receipt of the bill. Payments must be | ||||||
16 | concluded within 3 years after the employer's receipt of the | ||||||
17 | bill.
| ||||||
18 | (f-1) Beginning in fiscal year 2019, if a contract or | ||||||
19 | collective bargaining agreement entered into, amended, or | ||||||
20 | renewed on or after the effective date of this amendatory Act | ||||||
21 | of the 100th General Assembly provides for salaries to exceed | ||||||
22 | the salaries provided under the preceding contract or | ||||||
23 | collective bargaining agreement, then the employer shall pay to | ||||||
24 | the System the current value of the projected amount of the | ||||||
25 | increase in benefits, as determined by the System and | ||||||
26 | reflecting whether the teachers covered under the contract or |
| |||||||
| |||||||
1 | collective bargaining agreement are Tier 1 members or Tier 2 | ||||||
2 | members, resulting from the portion of the salaries that exceed | ||||||
3 | the amount of the salaries provided under the preceding | ||||||
4 | contract or collective bargaining agreement. The System may | ||||||
5 | require the employer to provide any pertinent information or | ||||||
6 | documentation. | ||||||
7 | Whenever it determines that a payment is or may be required | ||||||
8 | under this subsection (f-1), the System shall calculate the | ||||||
9 | amount of the payment and bill the employer for that amount. | ||||||
10 | The bill shall specify the calculations used to determine the | ||||||
11 | amount due. If the employer disputes the amount of the bill, it | ||||||
12 | may, within 30 days after receipt of the bill, apply to the | ||||||
13 | System in writing for a recalculation. The application must | ||||||
14 | specify in detail the grounds of the dispute. Upon receiving a | ||||||
15 | timely application for recalculation, the System shall review | ||||||
16 | the application and, if appropriate, recalculate the amount | ||||||
17 | due. | ||||||
18 | The employer contributions required under this subsection | ||||||
19 | (f-1) may be paid in the form of a lump sum within 90 days after | ||||||
20 | receipt of the bill. If the employer contributions are not paid | ||||||
21 | within 90 days after receipt of the bill, then interest shall | ||||||
22 | be charged at a rate equal to the System's annual actuarially | ||||||
23 | assumed rate of return on investment compounded annually from | ||||||
24 | the 91st day after receipt of the bill. Payments must be | ||||||
25 | concluded within 3 years after the employer's receipt of the | ||||||
26 | bill. |
| |||||||
| |||||||
1 | (g) This subsection (g) applies only to payments made or | ||||||
2 | salary increases given on or after June 1, 2005 but before July | ||||||
3 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
4 | require the System to refund any payments received before
July | ||||||
5 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
6 | When assessing payment for any amount due under subsection | ||||||
7 | (f), the System shall exclude salary increases paid to teachers | ||||||
8 | under contracts or collective bargaining agreements entered | ||||||
9 | into, amended, or renewed before June 1, 2005.
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10 | When assessing payment for any amount due under subsection | ||||||
11 | (f), the System shall exclude salary increases paid to a | ||||||
12 | teacher at a time when the teacher is 10 or more years from | ||||||
13 | retirement eligibility under Section 16-132 or 16-133.2.
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14 | When assessing payment for any amount due under subsection | ||||||
15 | (f), the System shall exclude salary increases resulting from | ||||||
16 | overload work, including summer school, when the school | ||||||
17 | district has certified to the System, and the System has | ||||||
18 | approved the certification, that (i) the overload work is for | ||||||
19 | the sole purpose of classroom instruction in excess of the | ||||||
20 | standard number of classes for a full-time teacher in a school | ||||||
21 | district during a school year and (ii) the salary increases are | ||||||
22 | equal to or less than the rate of pay for classroom instruction | ||||||
23 | computed on the teacher's current salary and work schedule.
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24 | When assessing payment for any amount due under subsection | ||||||
25 | (f), the System shall exclude a salary increase resulting from | ||||||
26 | a promotion (i) for which the employee is required to hold a |
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1 | certificate or supervisory endorsement issued by the State | ||||||
2 | Teacher Certification Board that is a different certification | ||||||
3 | or supervisory endorsement than is required for the teacher's | ||||||
4 | previous position and (ii) to a position that has existed and | ||||||
5 | been filled by a member for no less than one complete academic | ||||||
6 | year and the salary increase from the promotion is an increase | ||||||
7 | that results in an amount no greater than the lesser of the | ||||||
8 | average salary paid for other similar positions in the district | ||||||
9 | requiring the same certification or the amount stipulated in | ||||||
10 | the collective bargaining agreement for a similar position | ||||||
11 | requiring the same certification.
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12 | When assessing payment for any amount due under subsection | ||||||
13 | (f), the System shall exclude any payment to the teacher from | ||||||
14 | the State of Illinois or the State Board of Education over | ||||||
15 | which the employer does not have discretion, notwithstanding | ||||||
16 | that the payment is included in the computation of final | ||||||
17 | average salary.
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18 | (h) When assessing payment for any amount due under | ||||||
19 | subsection (f), the System shall exclude any salary increase | ||||||
20 | described in subsection (g) of this Section given on or after | ||||||
21 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
22 | collective bargaining agreement entered into, amended, or | ||||||
23 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
24 | Notwithstanding any other provision of this Section, any | ||||||
25 | payments made or salary increases given after June 30, 2014 | ||||||
26 | shall be used in assessing payment for any amount due under |
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1 | subsection (f) of this Section.
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2 | (i) The System shall prepare a report and file copies of | ||||||
3 | the report with the Governor and the General Assembly by | ||||||
4 | January 1, 2007 that contains all of the following information: | ||||||
5 | (1) The number of recalculations required by the | ||||||
6 | changes made to this Section by Public Act 94-1057 for each | ||||||
7 | employer. | ||||||
8 | (2) The dollar amount by which each employer's | ||||||
9 | contribution to the System was changed due to | ||||||
10 | recalculations required by Public Act 94-1057. | ||||||
11 | (3) The total amount the System received from each | ||||||
12 | employer as a result of the changes made to this Section by | ||||||
13 | Public Act 94-4. | ||||||
14 | (4) The increase in the required State contribution | ||||||
15 | resulting from the changes made to this Section by Public | ||||||
16 | Act 94-1057.
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17 | (j) For purposes of determining the required State | ||||||
18 | contribution to the System, the value of the System's assets | ||||||
19 | shall be equal to the actuarial value of the System's assets, | ||||||
20 | which shall be calculated as follows: | ||||||
21 | As of June 30, 2008, the actuarial value of the System's | ||||||
22 | assets shall be equal to the market value of the assets as of | ||||||
23 | that date. In determining the actuarial value of the System's | ||||||
24 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
25 | gains or losses from investment return incurred in a fiscal | ||||||
26 | year shall be recognized in equal annual amounts over the |
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1 | 5-year period following that fiscal year. | ||||||
2 | (k) For purposes of determining the required State | ||||||
3 | contribution to the system for a particular year, the actuarial | ||||||
4 | value of assets shall be assumed to earn a rate of return equal | ||||||
5 | to the system's actuarially assumed rate of return. | ||||||
6 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
7 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
8 | 6-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
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9 | (40 ILCS 5/16-106.4 rep.) | ||||||
10 | Section 10. The Illinois Pension Code is amended by | ||||||
11 | repealing Section 16-106.4.
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12 | Section 90. The State Mandates Act is amended by adding | ||||||
13 | Section 8.41 as follows:
| ||||||
14 | (30 ILCS 805/8.41 new) | ||||||
15 | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
16 | of this Act, no reimbursement by the State is required for the | ||||||
17 | implementation of any mandate created by this amendatory Act of | ||||||
18 | the 100th General Assembly.
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19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.".
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