Bill Amendment: IL SB2954 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PEN CD-SURS-EMPLOYER CONTRIB
Status: 2018-07-20 - Public Act . . . . . . . . . 100-0624 [SB2954 Detail]
Download: Illinois-2017-SB2954-House_Amendment_001.html
Bill Title: PEN CD-SURS-EMPLOYER CONTRIB
Status: 2018-07-20 - Public Act . . . . . . . . . 100-0624 [SB2954 Detail]
Download: Illinois-2017-SB2954-House_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 2954
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2 | AMENDMENT NO. ______. Amend Senate Bill 2954 on page 1, | ||||||
3 | line 5, by replacing "Section 15-155" with "Sections 15-155 and | ||||||
4 | 16-158"; and
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5 | on page 17, immediately below line 15, by inserting the | ||||||
6 | following:
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7 | "(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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8 | Sec. 16-158. Contributions by State and other employing | ||||||
9 | units.
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10 | (a) The State shall make contributions to the System by | ||||||
11 | means of
appropriations from the Common School Fund and other | ||||||
12 | State funds of amounts
which, together with other employer | ||||||
13 | contributions, employee contributions,
investment income, and | ||||||
14 | other income, will be sufficient to meet the cost of
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15 | maintaining and administering the System on a 90% funded basis | ||||||
16 | in accordance
with actuarial recommendations.
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1 | The Board shall determine the amount of State contributions | ||||||
2 | required for
each fiscal year on the basis of the actuarial | ||||||
3 | tables and other assumptions
adopted by the Board and the | ||||||
4 | recommendations of the actuary, using the formula
in subsection | ||||||
5 | (b-3).
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6 | (a-1) Annually, on or before November 15 until November 15, | ||||||
7 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
8 | required State contribution for the coming fiscal
year. The | ||||||
9 | certification under this subsection (a-1) shall include a copy | ||||||
10 | of the actuarial recommendations
upon which it is based and | ||||||
11 | shall specifically identify the System's projected State | ||||||
12 | normal cost for that fiscal year.
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13 | On or before May 1, 2004, 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 2005, taking | ||||||
16 | into account the amounts appropriated to and
received by the | ||||||
17 | System under subsection (d) of Section 7.2 of the General
| ||||||
18 | Obligation Bond Act.
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19 | On or before July 1, 2005, the Board shall recalculate and | ||||||
20 | recertify
to the Governor the amount of the required State
| ||||||
21 | contribution to the System for State fiscal year 2006, taking | ||||||
22 | into account the changes in required State contributions made | ||||||
23 | by Public Act 94-4 this amendatory Act of the 94th General | ||||||
24 | Assembly .
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25 | On or before April 1, 2011, the Board shall recalculate and | ||||||
26 | recertify to the Governor the amount of the required State |
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| |||||||
1 | contribution to the System for State fiscal year 2011, applying | ||||||
2 | the changes made by Public Act 96-889 to the System's assets | ||||||
3 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
4 | was approved on that date. | ||||||
5 | (a-5) On or before November 1 of each year, beginning | ||||||
6 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
7 | the Governor, and the General Assembly a proposed certification | ||||||
8 | of the amount of the required State contribution to the System | ||||||
9 | for the next fiscal year, along with all of the actuarial | ||||||
10 | assumptions, calculations, and data upon which that proposed | ||||||
11 | certification is based. On or before January 1 of each year, | ||||||
12 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
13 | preliminary report concerning the proposed certification and | ||||||
14 | identifying, if necessary, recommended changes in actuarial | ||||||
15 | assumptions that the Board must consider before finalizing its | ||||||
16 | certification of the required State contributions. On or before | ||||||
17 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
18 | shall certify to the Governor and the General Assembly the | ||||||
19 | amount of the required State contribution for the next fiscal | ||||||
20 | year. The Board's certification must note any deviations from | ||||||
21 | the State Actuary's recommended changes, the reason or reasons | ||||||
22 | for not following the State Actuary's recommended changes, and | ||||||
23 | the fiscal impact of not following the State Actuary's | ||||||
24 | recommended changes on the required State contribution. | ||||||
25 | (a-10) By November 1, 2017, the Board shall recalculate and | ||||||
26 | recertify to the State Actuary, the Governor, and the General |
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| |||||||
1 | Assembly the amount of the State contribution to the System for | ||||||
2 | State fiscal year 2018, taking into account the changes in | ||||||
3 | required State contributions made by Public Act 100-23 this | ||||||
4 | amendatory Act of the 100th General Assembly . The State Actuary | ||||||
5 | shall review the assumptions and valuations underlying the | ||||||
6 | Board's revised certification and issue a preliminary report | ||||||
7 | concerning the proposed recertification and identifying, if | ||||||
8 | necessary, recommended changes in actuarial assumptions that | ||||||
9 | the Board must consider before finalizing its certification of | ||||||
10 | the required State contributions. The Board's final | ||||||
11 | certification must note any deviations from the State Actuary's | ||||||
12 | recommended changes, the reason or reasons for not following | ||||||
13 | the State Actuary's recommended changes, and the fiscal impact | ||||||
14 | of not following the State Actuary's recommended changes on the | ||||||
15 | required State contribution. | ||||||
16 | (b) Through State fiscal year 1995, the State contributions | ||||||
17 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
18 | the School Code.
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19 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
20 | of each month,
or as soon thereafter as may be practicable, the | ||||||
21 | Board shall submit vouchers
for payment of State contributions | ||||||
22 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
23 | required annual State contribution certified under
subsection | ||||||
24 | (a-1).
From March 5, 2004 ( the
effective date of Public Act | ||||||
25 | 93-665) this amendatory Act of the 93rd General Assembly
| ||||||
26 | through June 30, 2004, the Board shall not submit vouchers for |
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1 | the
remainder of fiscal year 2004 in excess of the fiscal year | ||||||
2 | 2004
certified contribution amount determined under this | ||||||
3 | Section
after taking into consideration the transfer to the | ||||||
4 | System
under subsection (a) of Section 6z-61 of the State | ||||||
5 | Finance Act.
These vouchers shall be paid by the State | ||||||
6 | Comptroller and
Treasurer by warrants drawn on the funds | ||||||
7 | appropriated to the System for that
fiscal year.
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8 | If in any month the amount remaining unexpended from all | ||||||
9 | other appropriations
to the System for the applicable fiscal | ||||||
10 | year (including the appropriations to
the System under Section | ||||||
11 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
12 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
13 | amount
lawfully vouchered under this subsection, the | ||||||
14 | difference shall be paid from the
Common School Fund under the | ||||||
15 | continuing appropriation authority provided in
Section 1.1 of | ||||||
16 | the State Pension Funds Continuing Appropriation Act.
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17 | (b-2) Allocations from the Common School Fund apportioned | ||||||
18 | to school
districts not coming under this System shall not be | ||||||
19 | diminished or affected by
the provisions of this Article.
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20 | (b-3) For State fiscal years 2012 through 2045, the minimum | ||||||
21 | contribution
to the System to be made by the State for each | ||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||
23 | sufficient to bring the total assets of the
System up to 90% of | ||||||
24 | the total actuarial liabilities of the System by the end of
| ||||||
25 | State fiscal year 2045. In making these determinations, the | ||||||
26 | required State
contribution shall be calculated each year as a |
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| |||||||
1 | level percentage of payroll
over the years remaining to and | ||||||
2 | including fiscal year 2045 and shall be
determined under the | ||||||
3 | projected unit credit actuarial cost method.
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4 | For each of State fiscal years 2018, 2019, and 2020, the | ||||||
5 | State shall make an additional contribution to the System equal | ||||||
6 | to 2% of the total payroll of each employee who is deemed to | ||||||
7 | have elected the benefits under Section 1-161 or who has made | ||||||
8 | the election under subsection (c) of Section 1-161. | ||||||
9 | A change in an actuarial or investment assumption that | ||||||
10 | increases or
decreases the required State contribution and | ||||||
11 | first
applies in State fiscal year 2018 or thereafter shall be
| ||||||
12 | implemented in equal annual amounts over a 5-year period
| ||||||
13 | beginning in the State fiscal year in which the actuarial
| ||||||
14 | change first applies to the required State contribution. | ||||||
15 | A change in an actuarial or investment assumption that | ||||||
16 | increases or
decreases the required State contribution and | ||||||
17 | first
applied to the State contribution in fiscal year 2014, | ||||||
18 | 2015, 2016, or 2017 shall be
implemented: | ||||||
19 | (i) as already applied in State fiscal years before | ||||||
20 | 2018; and | ||||||
21 | (ii) in the portion of the 5-year period beginning in | ||||||
22 | the State fiscal year in which the actuarial
change first | ||||||
23 | applied that occurs in State fiscal year 2018 or | ||||||
24 | thereafter, by calculating the change in equal annual | ||||||
25 | amounts over that 5-year period and then implementing it at | ||||||
26 | the resulting annual rate in each of the remaining fiscal |
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1 | years in that 5-year period. | ||||||
2 | For State fiscal years 1996 through 2005, the State | ||||||
3 | contribution to the
System, as a percentage of the applicable | ||||||
4 | employee payroll, shall be increased
in equal annual increments | ||||||
5 | so that by State fiscal year 2011, the State is
contributing at | ||||||
6 | the rate required under this Section; except that in the
| ||||||
7 | following specified State fiscal years, the State contribution | ||||||
8 | to the System
shall not be less than the following indicated | ||||||
9 | percentages of the applicable
employee payroll, even if the | ||||||
10 | indicated percentage will produce a State
contribution in | ||||||
11 | excess of the amount otherwise required under this subsection
| ||||||
12 | and subsection (a), and notwithstanding any contrary | ||||||
13 | certification made under
subsection (a-1) before May 27, 1998 | ||||||
14 | ( the effective date of Public Act 90-582) this amendatory Act | ||||||
15 | of 1998 :
10.02% in FY 1999;
10.77% in FY 2000;
11.47% in FY | ||||||
16 | 2001;
12.16% in FY 2002;
12.86% in FY 2003; and
13.56% in FY | ||||||
17 | 2004.
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18 | Notwithstanding any other provision of this Article, the | ||||||
19 | total required State
contribution for State fiscal year 2006 is | ||||||
20 | $534,627,700.
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21 | Notwithstanding any other provision of this Article, the | ||||||
22 | total required State
contribution for State fiscal year 2007 is | ||||||
23 | $738,014,500.
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24 | For each of State fiscal years 2008 through 2009, the State | ||||||
25 | contribution to
the System, as a percentage of the applicable | ||||||
26 | employee payroll, shall be
increased in equal annual increments |
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1 | from the required State contribution for State fiscal year | ||||||
2 | 2007, so that by State fiscal year 2011, the
State is | ||||||
3 | contributing at the rate otherwise required under this Section.
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4 | Notwithstanding any other provision of this Article, the | ||||||
5 | total required State contribution for State fiscal year 2010 is | ||||||
6 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
7 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
8 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
9 | expenses determined by the System's share of total bond | ||||||
10 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
11 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
12 | due to the issuance of discounted bonds, if applicable. | ||||||
13 | Notwithstanding any other provision of this Article, the
| ||||||
14 | total required State contribution for State fiscal year 2011 is
| ||||||
15 | the amount recertified by the System on or before April 1, 2011 | ||||||
16 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
17 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
18 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
19 | pro rata share of bond sale
expenses determined by the System's | ||||||
20 | share of total bond
proceeds, (ii) any amounts received from | ||||||
21 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
22 | reduction in bond proceeds
due to the issuance of discounted | ||||||
23 | bonds, if applicable. This amount shall include, in addition to | ||||||
24 | the amount certified by the System, an amount necessary to meet | ||||||
25 | employer contributions required by the State as an employer | ||||||
26 | under paragraph (e) of this Section, which may also be used by |
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| |||||||
1 | the System for contributions required by paragraph (a) of | ||||||
2 | Section 16-127. | ||||||
3 | Beginning in State fiscal year 2046, the minimum State | ||||||
4 | contribution for
each fiscal year shall be the amount needed to | ||||||
5 | maintain the total assets of
the System at 90% of the total | ||||||
6 | actuarial liabilities of the System.
| ||||||
7 | Amounts received by the System pursuant to Section 25 of | ||||||
8 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
9 | Finance Act in any fiscal year do not reduce and do not | ||||||
10 | constitute payment of any portion of the minimum State | ||||||
11 | contribution required under this Article in that fiscal year. | ||||||
12 | Such amounts shall not reduce, and shall not be included in the | ||||||
13 | calculation of, the required State contributions under this | ||||||
14 | Article in any future year until the System has reached a | ||||||
15 | funding ratio of at least 90%. A reference in this Article to | ||||||
16 | the "required State contribution" or any substantially similar | ||||||
17 | term does not include or apply to any amounts payable to the | ||||||
18 | System under Section 25 of the Budget Stabilization Act. | ||||||
19 | Notwithstanding any other provision of this Section, the | ||||||
20 | required State
contribution for State fiscal year 2005 and for | ||||||
21 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
22 | under this Section and
certified under subsection (a-1), shall | ||||||
23 | not exceed an amount equal to (i) the
amount of the required | ||||||
24 | State contribution that would have been calculated under
this | ||||||
25 | Section for that fiscal year if the System had not received any | ||||||
26 | payments
under subsection (d) of Section 7.2 of the General |
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| |||||||
1 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
2 | total debt service payments for that fiscal
year on the bonds | ||||||
3 | issued in fiscal year 2003 for the purposes of that Section | ||||||
4 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
5 | the same as the System's portion of
the total moneys | ||||||
6 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
7 | Obligation Bond Act. In determining this maximum for State | ||||||
8 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
9 | in item (i) shall be increased, as a percentage of the | ||||||
10 | applicable employee payroll, in equal increments calculated | ||||||
11 | from the sum of the required State contribution for State | ||||||
12 | fiscal year 2007 plus the applicable portion of the State's | ||||||
13 | total debt service payments for fiscal year 2007 on the bonds | ||||||
14 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
15 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
16 | 2011, the
State is contributing at the rate otherwise required | ||||||
17 | under this Section.
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18 | (b-4) Beginning in fiscal year 2018, each employer under | ||||||
19 | this Article shall pay to the System a required contribution | ||||||
20 | determined as a percentage of projected payroll and sufficient | ||||||
21 | to produce an annual amount equal to: | ||||||
22 | (i) for each of fiscal years 2018, 2019, and 2020, the | ||||||
23 | defined benefit normal cost of the defined benefit plan, | ||||||
24 | less the employee contribution, for each employee of that | ||||||
25 | employer who has elected or who is deemed to have elected | ||||||
26 | the benefits under Section 1-161 or who has made the |
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1 | election under subsection (b) of Section 1-161; for fiscal | ||||||
2 | year 2021 and each fiscal year thereafter, the defined | ||||||
3 | benefit normal cost of the defined benefit plan, less the | ||||||
4 | employee contribution, plus 2%, for each employee of that | ||||||
5 | employer who has elected or who is deemed to have elected | ||||||
6 | the benefits under Section 1-161 or who has made the | ||||||
7 | election under subsection (b) of Section 1-161; plus | ||||||
8 | (ii) the amount required for that fiscal year to | ||||||
9 | amortize any unfunded actuarial accrued liability | ||||||
10 | associated with the present value of liabilities | ||||||
11 | attributable to the employer's account under Section | ||||||
12 | 16-158.3, determined
as a level percentage of payroll over | ||||||
13 | a 30-year rolling amortization period. | ||||||
14 | In determining contributions required under item (i) of | ||||||
15 | this subsection, the System shall determine an aggregate rate | ||||||
16 | for all employers, expressed as a percentage of projected | ||||||
17 | payroll. | ||||||
18 | In determining the contributions required under item (ii) | ||||||
19 | of this subsection, the amount shall be computed by the System | ||||||
20 | on the basis of the actuarial assumptions and tables used in | ||||||
21 | the most recent actuarial valuation of the System that is | ||||||
22 | available at the time of the computation. | ||||||
23 | The contributions required under this subsection (b-4) | ||||||
24 | shall be paid by an employer concurrently with that employer's | ||||||
25 | payroll payment period. The State, as the actual employer of an | ||||||
26 | employee, shall make the required contributions under this |
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1 | subsection. | ||||||
2 | (c) Payment of the required State contributions and of all | ||||||
3 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
4 | other benefits granted
under or assumed by this System, and all | ||||||
5 | expenses in connection with the
administration and operation | ||||||
6 | thereof, are obligations of the State.
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7 | If members are paid from special trust or federal funds | ||||||
8 | which are
administered by the employing unit, whether school | ||||||
9 | district or other
unit, the employing unit shall pay to the | ||||||
10 | System from such
funds the full accruing retirement costs based | ||||||
11 | upon that
service, which, beginning July 1, 2017, shall be at a | ||||||
12 | rate, expressed as a percentage of salary, equal to the total | ||||||
13 | employer's normal cost, expressed as a percentage of payroll, | ||||||
14 | as determined by the System. Employer contributions, based on
| ||||||
15 | salary paid to members from federal funds, may be forwarded by | ||||||
16 | the distributing
agency of the State of Illinois to the System | ||||||
17 | prior to allocation, in an
amount determined in accordance with | ||||||
18 | guidelines established by such
agency and the System. Any | ||||||
19 | contribution for fiscal year 2015 collected as a result of the | ||||||
20 | change made by Public Act 98-674 this amendatory Act of the | ||||||
21 | 98th General Assembly shall be considered a State contribution | ||||||
22 | under subsection (b-3) of this Section.
| ||||||
23 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
24 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
25 | employer's normal cost
of benefits based upon the teacher's | ||||||
26 | service, in addition to
employee contributions, as determined |
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1 | by the System. Such employer
contributions shall be forwarded | ||||||
2 | monthly in accordance with guidelines
established by the | ||||||
3 | System.
| ||||||
4 | However, with respect to benefits granted under Section | ||||||
5 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
6 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
7 | (rather than 20%) of the member's
highest annual salary rate | ||||||
8 | for each year of creditable service granted, and
the employer | ||||||
9 | shall also pay the required employee contribution on behalf of
| ||||||
10 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
11 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
12 | 16-106 who is serving in that capacity
while on leave of | ||||||
13 | absence from another employer under this Article shall not
be | ||||||
14 | considered an employee of the employer from which the teacher | ||||||
15 | is on leave.
| ||||||
16 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
17 | shall pay to the System an employer contribution computed as | ||||||
18 | follows:
| ||||||
19 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
20 | employer
contribution shall be equal to 0.3% of each | ||||||
21 | teacher's salary.
| ||||||
22 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
23 | contribution shall be equal to 0.58% of each teacher's | ||||||
24 | salary.
| ||||||
25 | The school district or other employing unit may pay these | ||||||
26 | employer
contributions out of any source of funding available |
| |||||||
| |||||||
1 | for that purpose and
shall forward the contributions to the | ||||||
2 | System on the schedule established
for the payment of member | ||||||
3 | contributions.
| ||||||
4 | These employer contributions are intended to offset a | ||||||
5 | portion of the cost
to the System of the increases in | ||||||
6 | retirement benefits resulting from Public Act 90-582 this
| ||||||
7 | amendatory Act of 1998 .
| ||||||
8 | Each employer of teachers is entitled to a credit against | ||||||
9 | the contributions
required under this subsection (e) with | ||||||
10 | respect to salaries paid to teachers
for the period January 1, | ||||||
11 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
12 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
13 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
14 | paid to teachers for that
period.
| ||||||
15 | The additional 1% employee contribution required under | ||||||
16 | Section 16-152 by Public Act 90-582
this amendatory Act of 1998 | ||||||
17 | is the responsibility of the teacher and not the
teacher's | ||||||
18 | employer, unless the employer agrees, through collective | ||||||
19 | bargaining
or otherwise, to make the contribution on behalf of | ||||||
20 | the teacher.
| ||||||
21 | If an employer is required by a contract in effect on May | ||||||
22 | 1, 1998 between the
employer and an employee organization to | ||||||
23 | pay, on behalf of all its full-time
employees
covered by this | ||||||
24 | Article, all mandatory employee contributions required under
| ||||||
25 | this Article, then the employer shall be excused from paying | ||||||
26 | the employer
contribution required under this subsection (e) |
| |||||||
| |||||||
1 | for the balance of the term
of that contract. The employer and | ||||||
2 | the employee organization shall jointly
certify to the System | ||||||
3 | the existence of the contractual requirement, in such
form as | ||||||
4 | the System may prescribe. This exclusion shall cease upon the
| ||||||
5 | termination, extension, or renewal of the contract at any time | ||||||
6 | after May 1,
1998.
| ||||||
7 | (f) If the amount of a teacher's salary for any school year | ||||||
8 | used to determine final average salary exceeds the member's | ||||||
9 | annual full-time salary rate with the same employer for the | ||||||
10 | previous school year by more than 6%, the teacher's employer | ||||||
11 | shall pay to the System, in addition to all other payments | ||||||
12 | required under this Section and in accordance with guidelines | ||||||
13 | established by the System, the present value of the increase in | ||||||
14 | benefits resulting from the portion of the increase in salary | ||||||
15 | that is in excess of 6%. This present value shall be computed | ||||||
16 | by the System on the basis of the actuarial assumptions and | ||||||
17 | tables used in the most recent actuarial valuation of the | ||||||
18 | System that is available at the time of the computation. If a | ||||||
19 | teacher's salary for the 2005-2006 school year is used to | ||||||
20 | determine final average salary under this subsection (f), then | ||||||
21 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
22 | shall apply in calculating whether the increase in his or her | ||||||
23 | salary is in excess of 6%. For the purposes of this Section, | ||||||
24 | change in employment under Section 10-21.12 of the School Code | ||||||
25 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
26 | The System may require the employer to provide any pertinent |
| |||||||
| |||||||
1 | information or documentation.
The changes made to this | ||||||
2 | subsection (f) by Public Act 94-1111 this amendatory Act of the | ||||||
3 | 94th General Assembly apply without regard to whether the | ||||||
4 | teacher was in service on or after its effective date.
| ||||||
5 | Whenever it determines that a payment is or may be required | ||||||
6 | under this subsection, the System shall calculate the amount of | ||||||
7 | the payment and bill the employer for that amount. The bill | ||||||
8 | shall specify the calculations used to determine the amount | ||||||
9 | due. If the employer disputes the amount of the bill, it may, | ||||||
10 | within 30 days after receipt of the bill, apply to the System | ||||||
11 | in writing for a recalculation. The application must specify in | ||||||
12 | detail the grounds of the dispute and, if the employer asserts | ||||||
13 | that the calculation is subject to subsection (g) or (h) of | ||||||
14 | this Section, must include an affidavit setting forth and | ||||||
15 | attesting to all facts within the employer's knowledge that are | ||||||
16 | pertinent to the applicability of that subsection. Upon | ||||||
17 | receiving a timely application for recalculation, the System | ||||||
18 | shall review the application and, if appropriate, recalculate | ||||||
19 | the amount due.
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20 | The employer contributions required under this subsection | ||||||
21 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
22 | receipt of the bill. If the employer contributions are not paid | ||||||
23 | within 90 days after receipt of the bill, then interest will be | ||||||
24 | charged at a rate equal to the System's annual actuarially | ||||||
25 | assumed rate of return on investment compounded annually from | ||||||
26 | the 91st day after receipt of the bill. Payments must be |
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1 | concluded within 3 years after the employer's receipt of the | ||||||
2 | bill.
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3 | (g) This subsection (g) applies only to payments made or | ||||||
4 | salary increases given on or after June 1, 2005 but before July | ||||||
5 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
6 | require the System to refund any payments received before
July | ||||||
7 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (f), the System shall exclude salary increases paid to teachers | ||||||
10 | under contracts or collective bargaining agreements entered | ||||||
11 | into, amended, or renewed before June 1, 2005.
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12 | When assessing payment for any amount due under subsection | ||||||
13 | (f), the System shall exclude salary increases paid to a | ||||||
14 | teacher at a time when the teacher is 10 or more years from | ||||||
15 | retirement eligibility under Section 16-132 or 16-133.2.
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16 | When assessing payment for any amount due under subsection | ||||||
17 | (f), the System shall exclude salary increases resulting from | ||||||
18 | overload work, including summer school, when the school | ||||||
19 | district has certified to the System, and the System has | ||||||
20 | approved the certification, that (i) the overload work is for | ||||||
21 | the sole purpose of classroom instruction in excess of the | ||||||
22 | standard number of classes for a full-time teacher in a school | ||||||
23 | district during a school year and (ii) the salary increases are | ||||||
24 | equal to or less than the rate of pay for classroom instruction | ||||||
25 | computed on the teacher's current salary and work schedule.
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26 | When assessing payment for any amount due under subsection |
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1 | (f), the System shall exclude a salary increase resulting from | ||||||
2 | a promotion (i) for which the employee is required to hold a | ||||||
3 | certificate or supervisory endorsement issued by the State | ||||||
4 | Teacher Certification Board that is a different certification | ||||||
5 | or supervisory endorsement than is required for the teacher's | ||||||
6 | previous position and (ii) to a position that has existed and | ||||||
7 | been filled by a member for no less than one complete academic | ||||||
8 | year and the salary increase from the promotion is an increase | ||||||
9 | that results in an amount no greater than the lesser of the | ||||||
10 | average salary paid for other similar positions in the district | ||||||
11 | requiring the same certification or the amount stipulated in | ||||||
12 | the collective bargaining agreement for a similar position | ||||||
13 | requiring the same certification.
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14 | When assessing payment for any amount due under subsection | ||||||
15 | (f), the System shall exclude any payment to the teacher from | ||||||
16 | the State of Illinois or the State Board of Education over | ||||||
17 | which the employer does not have discretion, notwithstanding | ||||||
18 | that the payment is included in the computation of final | ||||||
19 | average salary.
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20 | (h) When assessing payment for any amount due under | ||||||
21 | subsection (f), the System shall exclude any salary increase | ||||||
22 | described in subsection (g) of this Section given on or after | ||||||
23 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
24 | collective bargaining agreement entered into, amended, or | ||||||
25 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
26 | Notwithstanding any other provision of this Section, any |
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| |||||||
1 | payments made or salary increases given after June 30, 2014 | ||||||
2 | shall be used in assessing payment for any amount due under | ||||||
3 | subsection (f) of this Section.
| ||||||
4 | (i) The System shall prepare a report and file copies of | ||||||
5 | the report with the Governor and the General Assembly by | ||||||
6 | January 1, 2007 that contains all of the following information: | ||||||
7 | (1) The number of recalculations required by the | ||||||
8 | changes made to this Section by Public Act 94-1057 for each | ||||||
9 | employer. | ||||||
10 | (2) The dollar amount by which each employer's | ||||||
11 | contribution to the System was changed due to | ||||||
12 | recalculations required by Public Act 94-1057. | ||||||
13 | (3) The total amount the System received from each | ||||||
14 | employer as a result of the changes made to this Section by | ||||||
15 | Public Act 94-4. | ||||||
16 | (4) The increase in the required State contribution | ||||||
17 | resulting from the changes made to this Section by Public | ||||||
18 | Act 94-1057.
| ||||||
19 | (i-5) For school years beginning on or after July 1, 2017, | ||||||
20 | if the amount of a participant's salary for any school year , | ||||||
21 | determined on a full-time equivalent basis, exceeds the amount | ||||||
22 | of the salary set for the Governor, the participant's employer | ||||||
23 | shall pay to the System, in addition to all other payments | ||||||
24 | required under this Section and in accordance with guidelines | ||||||
25 | established by the System, an amount determined by the System | ||||||
26 | to be equal to the employer normal cost, as established by the |
| |||||||
| |||||||
1 | System and expressed as a total percentage of payroll, | ||||||
2 | multiplied by the amount of salary in excess of the amount of | ||||||
3 | the salary set for the Governor. This amount shall be computed | ||||||
4 | by the System on the basis of the actuarial assumptions and | ||||||
5 | tables used in the most recent actuarial valuation of the | ||||||
6 | System that is available at the time of the computation. The | ||||||
7 | System may require the employer to provide any pertinent | ||||||
8 | information or documentation. | ||||||
9 | Whenever it determines that a payment is or may be required | ||||||
10 | under this subsection, the System shall calculate the amount of | ||||||
11 | the payment and bill the employer for that amount. The bill | ||||||
12 | shall specify the calculations used to determine the amount | ||||||
13 | due. If the employer disputes the amount of the bill, it may, | ||||||
14 | within 30 days after receipt of the bill, apply to the System | ||||||
15 | in writing for a recalculation. The application must specify in | ||||||
16 | detail the grounds of the dispute. Upon receiving a timely | ||||||
17 | application for recalculation, the System shall review the | ||||||
18 | application and, if appropriate, recalculate the amount due. | ||||||
19 | The employer contributions required under this subsection | ||||||
20 | may be paid in the form of a lump sum within 90 days after | ||||||
21 | receipt of the bill. If the employer contributions are not paid | ||||||
22 | within 90 days after receipt of the bill, then interest will be | ||||||
23 | charged at a rate equal to the System's annual actuarially | ||||||
24 | assumed rate of return on investment compounded annually from | ||||||
25 | the 91st day after receipt of the bill. Payments must be | ||||||
26 | concluded within 3 years after the employer's receipt of the |
| |||||||
| |||||||
1 | bill. | ||||||
2 | (j) For purposes of determining the required State | ||||||
3 | contribution to the System, the value of the System's assets | ||||||
4 | shall be equal to the actuarial value of the System's assets, | ||||||
5 | which shall be calculated as follows: | ||||||
6 | As of June 30, 2008, the actuarial value of the System's | ||||||
7 | assets shall be equal to the market value of the assets as of | ||||||
8 | that date. In determining the actuarial value of the System's | ||||||
9 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
10 | gains or losses from investment return incurred in a fiscal | ||||||
11 | year shall be recognized in equal annual amounts over the | ||||||
12 | 5-year period following that fiscal year. | ||||||
13 | (k) For purposes of determining the required State | ||||||
14 | contribution to the system for a particular year, the actuarial | ||||||
15 | value of assets shall be assumed to earn a rate of return equal | ||||||
16 | to the system's actuarially assumed rate of return. | ||||||
17 | (Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; | ||||||
18 | revised 9-25-17.)".
|