99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0254
 
Introduced , by Rep. Joe Sosnowski
 
SYNOPSIS AS INTRODUCED:



            
40 ILCS 5/1-103.3
40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
40 ILCS 5/14-131
40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131 from Ch. 108 1/2, par. 18-131

 Provides that if and only if the Supreme Court of Illinois, in the consolidated case of In re Pension Reform Litigation, No. 118585, finds that either Public Act 98-599 is unconstitutional in its entirety or that the changes made by Public Act 98-599 to certain Sections of the Illinois Pension Code are unconstitutional, the Illinois Pension Code is amended to make changes to the prescribed funding formulas for the 5 State-funded retirement systems. In the Judges Article, increases the funding ratio from 90% to 100%. Makes corresponding changes. Effective immediately.



LRB099 04001 RPS 24018 b


FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB0254LRB099 04001 RPS 24018 b



1 AN ACT concerning public employee benefits.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. If and only if the Supreme Court of Illinois, in 
5the consolidated case of In re Pension Reform Litigation, No. 
6118585, finds that either: Public Act 98-599 is 
7unconstitutional in its entirety; or that the changes made by 
8Public Act 98-599 to Sections 1-103.3, 2-124, 14-131, 15-155, 
916-158, and 18-131 of the Illinois Pension Code are 
10unconstitutional, the Illinois Pension Code is amended by 
11changing Sections 1-103.3, 2-124, 14-131, 15-155, 16-158, and 
1218-131 as follows:



13 (40 ILCS 5/1-103.3)



14 Sec. 1-103.3. Application of 1994 amendment; funding 
15standard. 

16 (a) The provisions of Public Act 88-593 that change the 
17method of
calculating, certifying, and paying the required 
18State contributions to the
retirement systems established 
19under Articles 2, 14, 15, 16, and 18 shall
first apply to the 
20State contributions required for State fiscal year 1996.

21 (b) (Blank).

22 (b-5) The General Assembly declares that a funding ratio 
23(the ratio of a retirement system's total assets to its total 
 
 
HB0254- 2 -LRB099 04001 RPS 24018 b


1actuarial liabilities) of 100% is an appropriate goal for 
2State-funded retirement systems in Illinois, and it finds that 
3a funding ratio of 100% is now the generally-recognized norm 
4throughout the nation for public employee retirement systems 
5that are considered to be financially secure and funded in an 
6appropriate and responsible manner. 
7 (c) Every 5 years, beginning in 1999, the Commission on 
8Government Forecasting and Accountability, in consultation 
9with the affected retirement systems and the
Governor's Office 
10of Management and Budget (formerly
Bureau
of the Budget), shall 
11consider and determine whether the 100% funding ratio goals

12adopted in Articles 2, 14, 15, 16, and 18 of this Code continue 
13to represent appropriate funding goals for
those retirement 
14systems, and it shall report its findings
and recommendations 
15on this subject to the Governor and the General Assembly.

16(Source: P.A. 98-599, eff. 6-1-14.)




17 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)


18 Sec. 2-124. Contributions by State. 

19 (a) The State shall make contributions to the System by

20appropriations of amounts which, together with the 
21contributions of
participants, interest earned on investments, 
22and other income
will meet the cost of maintaining and 
23administering the System on a 100%
funded basis in accordance 
24with actuarial recommendations by the end of State fiscal year 
252044.

 
 
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1 (b) The Board shall determine the amount of State

2contributions required for each fiscal year on the basis of the

3actuarial tables and other assumptions adopted by the Board and 
4the
prescribed rate of interest, using the formula in 
5subsection (c).

6 (c) For State fiscal years 2016 through 2045, the minimum

7contribution to the System to be made by the State for each

8fiscal year shall be an amount determined by the System to be

9sufficient to bring the total assets of the System up to 100%

10of the total actuarial liabilities of the System by the end
of 
11State fiscal year 2045. In making these determinations, the

12required State contribution shall be calculated each year as a

13level percentage of payroll over the years remaining to and

14including fiscal year 2045 and shall be determined under the

15projected unit credit actuarial cost method.
16  For State fiscal year years 2015 through 2044, the minimum 
17contribution
to the System to be made by the State for the each 
18fiscal year shall be an amount
determined by the System to be 
19equal to the sum of (1) the State's portion of the projected 
20normal cost for the that fiscal year, plus (2) an amount 
21sufficient to bring the total assets of the
System up to 100% 
22of the total actuarial liabilities of the System by the end of

23State fiscal year 2044. In making these determinations, the 
24required State
contribution shall be calculated each year as a 
25level percentage of payroll
over the years remaining to and 
26including fiscal year 2044 and shall be
determined under the 
 
 
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1projected unit cost method for fiscal year 2015 and under the 
2entry age normal actuarial cost method for fiscal years 2016 
3through 2044.
4 For State fiscal years 2012 through 2014, the minimum 
5contribution
to the System to be made by the State for each 
6fiscal year shall be an amount
determined by the System to be 
7sufficient to bring the total assets of the
System up to 90% of 
8the total actuarial liabilities of the System by the end of

9State fiscal year 2045. In making these determinations, the 
10required State
contribution shall be calculated each year as a 
11level percentage of payroll
over the years remaining to and 
12including fiscal year 2045 and shall be
determined under the 
13projected unit credit actuarial cost method.

14 For State fiscal years 1996 through 2005, the State 
15contribution to
the System, as a percentage of the applicable 
16employee payroll, shall be
increased in equal annual increments 
17so that by State fiscal year 2011, the
State is contributing at 
18the rate required under this Section.

19 Notwithstanding any other provision of this Article, the 
20total required State
contribution for State fiscal year 2006 is 
21$4,157,000.

22 Notwithstanding any other provision of this Article, the 
23total required State
contribution for State fiscal year 2007 is 
24$5,220,300.

25 For each of State fiscal years 2008 through 2009, the State 
26contribution to
the System, as a percentage of the applicable 
 
 
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1employee payroll, shall be
increased in equal annual increments 
2from the required State contribution for State fiscal year 
32007, so that by State fiscal year 2011, the
State is 
4contributing at the rate otherwise required under this Section.

5 Notwithstanding any other provision of this Article, the 
6total required State contribution for State fiscal year 2010 is 
7$10,454,000 and shall be made from the proceeds of bonds sold 
8in fiscal year 2010 pursuant to Section 7.2 of the General 
9Obligation Bond Act, less (i) the pro rata share of bond sale 
10expenses determined by the System's share of total bond 
11proceeds, (ii) any amounts received from the General Revenue 
12Fund in fiscal year 2010, and (iii) any reduction in bond 
13proceeds due to the issuance of discounted bonds, if 
14applicable. 
15 Notwithstanding any other provision of this Article, the

16total required State contribution for State fiscal year 2011 is

17the amount recertified by the System on or before April 1, 2011 
18pursuant to Section 2-134 and shall be made from the proceeds 
19of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of 
20the General
Obligation Bond Act, less (i) the pro rata share of 
21bond sale
expenses determined by the System's share of total 
22bond
proceeds, (ii) any amounts received from the General 
23Revenue
Fund in fiscal year 2011, and (iii) any reduction in 
24bond
proceeds due to the issuance of discounted bonds, if

25applicable. 
26 Beginning in State fiscal year 2045, the minimum State 
 
 
HB0254- 6 -LRB099 04001 RPS 24018 b


1contribution for each fiscal year shall be the amount needed to 
2maintain the total assets of the System at 100% of the total 
3actuarial liabilities of the System. 

4 Amounts received by the System pursuant to Section 25 of 
5the Budget Stabilization Act or Section 8.12 of the State 
6Finance Act in any fiscal year do not reduce and do not 
7constitute payment of any portion of the minimum State 
8contribution required under this Article in that fiscal year. 
9Such amounts shall not reduce, and shall not be included in the 
10calculation of, the required State contributions under this 
11Article in any future year until the System has reached a 
12funding ratio of at least 100%. A reference in this Article to 
13the "required State contribution" or any substantially similar 
14term does not include or apply to any amounts payable to the 
15System under Section 25 of the Budget Stabilization Act.

16 Notwithstanding any other provision of this Section, the 
17required State
contribution for State fiscal year 2005 and for 
18fiscal year 2008 and each fiscal year thereafter through State 
19fiscal year 2014, as
calculated under this Section and

20certified under Section 2-134, shall not exceed an amount equal 
21to (i) the
amount of the required State contribution that would 
22have been calculated under
this Section for that fiscal year if 
23the System had not received any payments
under subsection (d) 
24of Section 7.2 of the General Obligation Bond Act, minus
(ii) 
25the portion of the State's total debt service payments for that 
26fiscal
year on the bonds issued in fiscal year 2003 for the 
 
 
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1purposes of that Section 7.2, as determined
and certified by 
2the Comptroller, that is the same as the System's portion of

3the total moneys distributed under subsection (d) of Section 
47.2 of the General
Obligation Bond Act. In determining this 
5maximum for State fiscal years 2008 through 2010, however, the 
6amount referred to in item (i) shall be increased, as a 
7percentage of the applicable employee payroll, in equal 
8increments calculated from the sum of the required State 
9contribution for State fiscal year 2007 plus the applicable 
10portion of the State's total debt service payments for fiscal 
11year 2007 on the bonds issued in fiscal year 2003 for the 
12purposes of Section 7.2 of the General
Obligation Bond Act, so 
13that, by State fiscal year 2011, the
State is contributing at 
14the rate otherwise required under this Section.


15 (d) For purposes of determining the required State 
16contribution to the System, the value of the System's assets 
17shall be equal to the actuarial value of the System's assets, 
18which shall be calculated as follows:
19 As of June 30, 2008, the actuarial value of the System's 
20assets shall be equal to the market value of the assets as of 
21that date. In determining the actuarial value of the System's 
22assets for fiscal years after June 30, 2008, any actuarial 
23gains or losses from investment return incurred in a fiscal 
24year shall be recognized in equal annual amounts over the 
255-year period following that fiscal year. 
26 (e) For purposes of determining the required State 
 
 
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1contribution to the system for a particular year, the actuarial 
2value of assets shall be assumed to earn a rate of return equal 
3to the system's actuarially assumed rate of return. 
4(Source: P.A. 97-813, eff. 7-13-12; 98-599, eff. 6-1-14.)



5 (40 ILCS 5/14-131)



6 Sec. 14-131. Contributions by State. 

7 (a) The State shall make contributions to the System by 
8appropriations of
amounts which, together with other employer 
9contributions from trust, federal,
and other funds, employee 
10contributions, investment income, and other income,
will be 
11sufficient to meet the cost of maintaining and administering 
12the System
on a 100% funded basis in accordance with actuarial 
13recommendations by the end of State fiscal year 2044.

14 For the purposes of this Section and Section 14-135.08, 
15references to State
contributions refer only to employer 
16contributions and do not include employee
contributions that 
17are picked up or otherwise paid by the State or a
department on 
18behalf of the employee.

19 (b) The Board shall determine the total amount of State 
20contributions
required for each fiscal year on the basis of the 
21actuarial tables and other
assumptions adopted by the Board, 
22using the formula in subsection (e).

23 The Board shall also determine a State contribution rate 
24for each fiscal
year, expressed as a percentage of payroll, 
25based on the total required State
contribution for that fiscal 
 
 
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1year (less the amount received by the System from

2appropriations under Section 8.12 of the State Finance Act and 
3Section 1 of the
State Pension Funds Continuing Appropriation 
4Act, if any, for the fiscal year
ending on the June 30 
5immediately preceding the applicable November 15
certification 
6deadline), the estimated payroll (including all forms of

7compensation) for personal services rendered by eligible 
8employees, and the
recommendations of the actuary.

9 For the purposes of this Section and Section 14.1 of the 
10State Finance Act,
the term "eligible employees" includes 
11employees who participate in the System,
persons who may elect 
12to participate in the System but have not so elected,
persons 
13who are serving a qualifying period that is required for 
14participation,
and annuitants employed by a department as 
15described in subdivision (a)(1) or
(a)(2) of Section 14-111.

16 (c) Contributions shall be made by the several departments 
17for each pay
period by warrants drawn by the State Comptroller 
18against their respective
funds or appropriations based upon 
19vouchers stating the amount to be so
contributed. These amounts 
20shall be based on the full rate certified by the
Board under 
21Section 14-135.08 for that fiscal year.
From the effective date 
22of this amendatory Act of the 93rd General
Assembly through the 
23payment of the final payroll from fiscal year 2004

24appropriations, the several departments shall not make 
25contributions
for the remainder of fiscal year 2004 but shall 
26instead make payments
as required under subsection (a-1) of 
 
 
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1Section 14.1 of the State Finance Act.
The several departments 
2shall resume those contributions at the commencement of
fiscal 
3year 2005.

4 (c-1) Notwithstanding subsection (c) of this Section, for 
5fiscal years 2010, 2012, 2013, 2014, and 2015 only, 
6contributions by the several departments are not required to be 
7made for General Revenue Funds payrolls processed by the 
8Comptroller. Payrolls paid by the several departments from all 
9other State funds must continue to be processed pursuant to 
10subsection (c) of this Section.
11 (c-2) For State fiscal years 2010, 2012, 2013, 2014, and 
122015 only, on or as soon as possible after the 15th day of each 
13month, the Board shall submit vouchers for payment of State 
14contributions to the System, in a total monthly amount of 
15one-twelfth of the fiscal year General Revenue Fund 
16contribution as certified by the System pursuant to Section 
1714-135.08 of the Illinois Pension Code. 
18 (d) If an employee is paid from trust funds or federal 
19funds, the
department or other employer shall pay employer 
20contributions from those funds
to the System at the certified 
21rate, unless the terms of the trust or the
federal-State 
22agreement preclude the use of the funds for that purpose, in

23which case the required employer contributions shall be paid by 
24the State.
From the effective date of this amendatory
Act of 
25the 93rd General Assembly through the payment of the final

26payroll from fiscal year 2004 appropriations, the department or 
 
 
HB0254- 11 -LRB099 04001 RPS 24018 b


1other
employer shall not pay contributions for the remainder of 
2fiscal year
2004 but shall instead make payments as required 
3under subsection (a-1) of
Section 14.1 of the State Finance 
4Act. The department or other employer shall
resume payment of

5contributions at the commencement of fiscal year 2005.

6 (e) For State fiscal years 2016 through 2045, the minimum 
7contribution to the System to be made by the State for each 
8fiscal year shall be an amount determined by the System to be 
9sufficient to bring the total assets of the System up to 100% 
10of the total actuarial liabilities of the System by the end of 
11State fiscal year 2045. In making these determinations, the 
12required State contribution shall be calculated each year as a 
13level percentage of payroll over the years remaining to and 
14including fiscal year 2045 and shall be determined under the 
15projected unit credit actuarial cost method. 
16 For State fiscal year years 2015 through 2044, the minimum 
17contribution
to the System to be made by the State for the each 
18fiscal year shall be an amount
determined by the System to be 
19equal to the sum of (1) the State's portion of the projected 
20normal cost for the that fiscal year, plus (2) an amount 
21sufficient to bring the total assets of the
System up to 100% 
22of the total actuarial liabilities of the System by the end of

23State fiscal year 2044. In making these determinations, the 
24required State
contribution shall be calculated each year as a 
25level percentage of payroll
over the years remaining to and 
26including fiscal year 2044 and shall be
determined under the 
 
 
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1projected unit cost method for fiscal year 2015 and under the 
2entry age normal actuarial cost method for fiscal years 2016 
3through 2044.
4 For State fiscal years 2012 through 2014, the minimum 
5contribution
to the System to be made by the State for each 
6fiscal year shall be an amount
determined by the System to be 
7sufficient to bring the total assets of the
System up to 90% of 
8the total actuarial liabilities of the System by the end
of 
9State fiscal year 2045. In making these determinations, the 
10required State
contribution shall be calculated each year as a 
11level percentage of payroll
over the years remaining to and 
12including fiscal year 2045 and shall be
determined under the 
13projected unit credit actuarial cost method.

14 For State fiscal years 1996 through 2005, the State 
15contribution to
the System, as a percentage of the applicable 
16employee payroll, shall be
increased in equal annual increments 
17so that by State fiscal year 2011, the
State is contributing at 
18the rate required under this Section; except that
(i) for State 
19fiscal year 1998, for all purposes of this Code and any other

20law of this State, the certified percentage of the applicable 
21employee payroll
shall be 5.052% for employees earning eligible 
22creditable service under Section
14-110 and 6.500% for all 
23other employees, notwithstanding any contrary
certification 
24made under Section 14-135.08 before the effective date of this

25amendatory Act of 1997, and (ii)
in the following specified 
26State fiscal years, the State contribution to
the System shall 
 
 
HB0254- 13 -LRB099 04001 RPS 24018 b


1not be less than the following indicated percentages of the

2applicable employee payroll, even if the indicated percentage 
3will produce a
State contribution in excess of the amount 
4otherwise required under this
subsection and subsection (a):

59.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY 
62002;
10.6% in FY 2003; and
10.8% in FY 2004.

7 Notwithstanding any other provision of this Article, the 
8total required State
contribution to the System for State 
9fiscal year 2006 is $203,783,900.

10 Notwithstanding any other provision of this Article, the 
11total required State
contribution to the System for State 
12fiscal year 2007 is $344,164,400.

13 For each of State fiscal years 2008 through 2009, the State 
14contribution to
the System, as a percentage of the applicable 
15employee payroll, shall be
increased in equal annual increments 
16from the required State contribution for State fiscal year 
172007, so that by State fiscal year 2011, the
State is 
18contributing at the rate otherwise required under this Section.

19 Notwithstanding any other provision of this Article, the 
20total required State General Revenue Fund contribution for 
21State fiscal year 2010 is $723,703,100 and shall be made from 
22the proceeds of bonds sold in fiscal year 2010 pursuant to 
23Section 7.2 of the General Obligation Bond Act, less (i) the 
24pro rata share of bond sale expenses determined by the System's 
25share of total bond proceeds, (ii) any amounts received from 
26the General Revenue Fund in fiscal year 2010, and (iii) any 
 
 
HB0254- 14 -LRB099 04001 RPS 24018 b


1reduction in bond proceeds due to the issuance of discounted 
2bonds, if applicable. 
3 Notwithstanding any other provision of this Article, the

4total required State General Revenue Fund contribution for

5State fiscal year 2011 is the amount recertified by the System 
6on or before April 1, 2011 pursuant to Section 14-135.08 and 
7shall be made from
the proceeds of bonds sold in fiscal year 
82011 pursuant to
Section 7.2 of the General Obligation Bond 
9Act, less (i) the
pro rata share of bond sale expenses 
10determined by the System's
share of total bond proceeds, (ii) 
11any amounts received from
the General Revenue Fund in fiscal 
12year 2011, and (iii) any
reduction in bond proceeds due to the 
13issuance of discounted
bonds, if applicable. 
14 Beginning in State fiscal year 2046 2045, the minimum State 
15contribution for each fiscal year shall be the amount needed to 
16maintain the total assets of the System at 100% of the total 
17actuarial liabilities of the System. 

18 Amounts received by the System pursuant to Section 25 of 
19the Budget Stabilization Act or Section 8.12 of the State 
20Finance Act in any fiscal year do not reduce and do not 
21constitute payment of any portion of the minimum State 
22contribution required under this Article in that fiscal year. 
23Such amounts shall not reduce, and shall not be included in the 
24calculation of, the required State contributions under this 
25Article in any future year until the System has reached a 
26funding ratio of at least 100%. A reference in this Article to 
 
 
HB0254- 15 -LRB099 04001 RPS 24018 b


1the "required State contribution" or any substantially similar 
2term does not include or apply to any amounts payable to the 
3System under Section 25 of the Budget Stabilization Act.

4 Notwithstanding any other provision of this Section, the 
5required State
contribution for State fiscal year 2005 and for 
6fiscal year 2008 and each fiscal year thereafter through State 
7fiscal year 2014, as
calculated under this Section and

8certified under Section 14-135.08, shall not exceed an amount 
9equal to (i) the
amount of the required State contribution that 
10would have been calculated under
this Section for that fiscal 
11year if the System had not received any payments
under 
12subsection (d) of Section 7.2 of the General Obligation Bond 
13Act, minus
(ii) the portion of the State's total debt service 
14payments for that fiscal
year on the bonds issued in fiscal 
15year 2003 for the purposes of that Section 7.2, as determined

16and certified by the Comptroller, that is the same as the 
17System's portion of
the total moneys distributed under 
18subsection (d) of Section 7.2 of the General
Obligation Bond 
19Act. In determining this maximum for State fiscal years 2008 
20through 2010, however, the amount referred to in item (i) shall 
21be increased, as a percentage of the applicable employee 
22payroll, in equal increments calculated from the sum of the 
23required State contribution for State fiscal year 2007 plus the 
24applicable portion of the State's total debt service payments 
25for fiscal year 2007 on the bonds issued in fiscal year 2003 
26for the purposes of Section 7.2 of the General
Obligation Bond 
 
 
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1Act, so that, by State fiscal year 2011, the
State is 
2contributing at the rate otherwise required under this Section.

3 (f) After the submission of all payments for eligible 
4employees
from personal services line items in fiscal year 2004 
5have been made,
the Comptroller shall provide to the System a 
6certification of the sum
of all fiscal year 2004 expenditures 
7for personal services that would
have been covered by payments 
8to the System under this Section if the
provisions of this 
9amendatory Act of the 93rd General Assembly had not been

10enacted. Upon
receipt of the certification, the System shall 
11determine the amount
due to the System based on the full rate 
12certified by the Board under
Section 14-135.08 for fiscal year 
132004 in order to meet the State's
obligation under this 
14Section. The System shall compare this amount
due to the amount 
15received by the System in fiscal year 2004 through
payments 
16under this Section and under Section 6z-61 of the State Finance 
17Act.
If the amount
due is more than the amount received, the 
18difference shall be termed the
"Fiscal Year 2004 Shortfall" for 
19purposes of this Section, and the
Fiscal Year 2004 Shortfall 
20shall be satisfied under Section 1.2 of the State
Pension Funds 
21Continuing Appropriation Act. If the amount due is less than 
22the
amount received, the
difference shall be termed the "Fiscal 
23Year 2004 Overpayment" for purposes of
this Section, and the 
24Fiscal Year 2004 Overpayment shall be repaid by
the System to 
25the Pension Contribution Fund as soon as practicable
after the 
26certification.

 
 
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1 (g) For purposes of determining the required State 
2contribution to the System, the value of the System's assets 
3shall be equal to the actuarial value of the System's assets, 
4which shall be calculated as follows:
5 As of June 30, 2008, the actuarial value of the System's 
6assets shall be equal to the market value of the assets as of 
7that date. In determining the actuarial value of the System's 
8assets for fiscal years after June 30, 2008, any actuarial 
9gains or losses from investment return incurred in a fiscal 
10year shall be recognized in equal annual amounts over the 
115-year period following that fiscal year. 
12 (h) For purposes of determining the required State 
13contribution to the System for a particular year, the actuarial 
14value of assets shall be assumed to earn a rate of return equal 
15to the System's actuarially assumed rate of return. 
16 (i) After the submission of all payments for eligible 
17employees from personal services line items paid from the 
18General Revenue Fund in fiscal year 2010 have been made, the 
19Comptroller shall provide to the System a certification of the 
20sum of all fiscal year 2010 expenditures for personal services 
21that would have been covered by payments to the System under 
22this Section if the provisions of this amendatory Act of the 
2396th General Assembly had not been enacted. Upon receipt of the 
24certification, the System shall determine the amount due to the 
25System based on the full rate certified by the Board under 
26Section 14-135.08 for fiscal year 2010 in order to meet the 
 
 
HB0254- 18 -LRB099 04001 RPS 24018 b


1State's obligation under this Section. The System shall compare 
2this amount due to the amount received by the System in fiscal 
3year 2010 through payments under this Section. If the amount 
4due is more than the amount received, the difference shall be 
5termed the "Fiscal Year 2010 Shortfall" for purposes of this 
6Section, and the Fiscal Year 2010 Shortfall shall be satisfied 
7under Section 1.2 of the State Pension Funds Continuing 
8Appropriation Act. If the amount due is less than the amount 
9received, the difference shall be termed the "Fiscal Year 2010 
10Overpayment" for purposes of this Section, and the Fiscal Year 
112010 Overpayment shall be repaid by the System to the General 
12Revenue Fund as soon as practicable after the certification.
13 (j) After the submission of all payments for eligible 
14employees from personal services line items paid from the 
15General Revenue Fund in fiscal year 2011 have been made, the 
16Comptroller shall provide to the System a certification of the 
17sum of all fiscal year 2011 expenditures for personal services 
18that would have been covered by payments to the System under 
19this Section if the provisions of this amendatory Act of the 
2096th General Assembly had not been enacted. Upon receipt of the 
21certification, the System shall determine the amount due to the 
22System based on the full rate certified by the Board under 
23Section 14-135.08 for fiscal year 2011 in order to meet the 
24State's obligation under this Section. The System shall compare 
25this amount due to the amount received by the System in fiscal 
26year 2011 through payments under this Section. If the amount 
 
 
HB0254- 19 -LRB099 04001 RPS 24018 b


1due is more than the amount received, the difference shall be 
2termed the "Fiscal Year 2011 Shortfall" for purposes of this 
3Section, and the Fiscal Year 2011 Shortfall shall be satisfied 
4under Section 1.2 of the State Pension Funds Continuing 
5Appropriation Act. If the amount due is less than the amount 
6received, the difference shall be termed the "Fiscal Year 2011 
7Overpayment" for purposes of this Section, and the Fiscal Year 
82011 Overpayment shall be repaid by the System to the General 
9Revenue Fund as soon as practicable after the certification.
10 (k) For fiscal years 2012 through 2015 only, after the 
11submission of all payments for eligible employees from personal 
12services line items paid from the General Revenue Fund in the 
13fiscal year have been made, the Comptroller shall provide to 
14the System a certification of the sum of all expenditures in 
15the fiscal year for personal services. Upon receipt of the 
16certification, the System shall determine the amount due to the 
17System based on the full rate certified by the Board under 
18Section 14-135.08 for the fiscal year in order to meet the 
19State's obligation under this Section. The System shall compare 
20this amount due to the amount received by the System for the 
21fiscal year. If the amount due is more than the amount 
22received, the difference shall be termed the "Prior Fiscal Year 
23Shortfall" for purposes of this Section, and the Prior Fiscal 
24Year Shortfall shall be satisfied under Section 1.2 of the 
25State Pension Funds Continuing Appropriation Act. If the amount 
26due is less than the amount received, the difference shall be 
 
 
HB0254- 20 -LRB099 04001 RPS 24018 b


1termed the "Prior Fiscal Year Overpayment" for purposes of this 
2Section, and the Prior Fiscal Year Overpayment shall be repaid 
3by the System to the General Revenue Fund as soon as 
4practicable after the certification. 
5(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, 
6eff. 6-19-13; 98-599, eff. 6-1-14; 98-674, eff. 6-30-14.)




7 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)


8 Sec. 15-155. Employer contributions. 

9 (a) The State of Illinois shall make contributions by 
10appropriations of
amounts which, together with the other 
11employer contributions from trust,
federal, and other funds, 
12employee contributions, income from investments,
and other 
13income of this System, will be sufficient to meet the cost of

14maintaining and administering the System on a 100% funded basis 
15in accordance
with actuarial recommendations by the end of 
16State fiscal year 2044.

17 The Board shall determine the amount of State contributions 
18required for
each fiscal year on the basis of the actuarial 
19tables and other assumptions
adopted by the Board and the 
20recommendations of the actuary, using the formula
in subsection 
21(a-1).

22 (a-1) For State fiscal years 2016 through 2045, the minimum

23contribution to the System to be made by the State for each

24fiscal year shall be an amount determined by the System to be

25sufficient to bring the total assets of the System up to 100% 
 
 
HB0254- 21 -LRB099 04001 RPS 24018 b


1of the total actuarial liabilities of the System by the end of 
2State fiscal year 2045. In making these determinations, the 
3required State contribution shall be calculated each year as a 
4level percentage of payroll over the years remaining to and 
5including fiscal year 2045 and shall be determined under the 
6projected unit credit actuarial cost method. 
7 For State fiscal year years 2015 through 2044, the minimum 
8contribution
to the System to be made by the State for the each 
9fiscal year shall be an amount
determined by the System to be 
10equal to the sum of (1) the State's portion of the projected 
11normal cost for the that fiscal year, plus (2) an amount 
12sufficient to bring the total assets of the System up to 100% 
13of the total actuarial liabilities of the System by the end of 
14the State fiscal year 2044. In making these determinations, the 
15required State contribution shall be calculated each year as a 
16level percentage of payroll over the years remaining to and 
17including fiscal year 2044 and shall be determined under the 
18projected unit cost method for fiscal year 2015 and under the 
19entry age normal actuarial cost method for fiscal years 2016 
20through 2044. 
21 For State fiscal years 2012 through 2014, the minimum 
22contribution
to the System to be made by the State for each 
23fiscal year shall be an amount
determined by the System to be 
24sufficient to bring the total assets of the
System up to 90% of 
25the total actuarial liabilities of the System by the end of

26State fiscal year 2045. In making these determinations, the 
 
 
HB0254- 22 -LRB099 04001 RPS 24018 b


1required State
contribution shall be calculated each year as a 
2level percentage of payroll
over the years remaining to and 
3including fiscal year 2045 and shall be
determined under the 
4projected unit credit actuarial cost method.

5 For State fiscal years 1996 through 2005, the State 
6contribution to
the System, as a percentage of the applicable 
7employee payroll, shall be
increased in equal annual increments 
8so that by State fiscal year 2011, the
State is contributing at 
9the rate required under this Section.

10 Notwithstanding any other provision of this Article, the 
11total required State
contribution for State fiscal year 2006 is 
12$166,641,900.

13 Notwithstanding any other provision of this Article, the 
14total required State
contribution for State fiscal year 2007 is 
15$252,064,100.

16 For each of State fiscal years 2008 through 2009, the State 
17contribution to
the System, as a percentage of the applicable 
18employee payroll, shall be
increased in equal annual increments 
19from the required State contribution for State fiscal year 
202007, so that by State fiscal year 2011, the
State is 
21contributing at the rate otherwise required under this Section.

22 Notwithstanding any other provision of this Article, the 
23total required State contribution for State fiscal year 2010 is 
24$702,514,000 and shall be made from the State Pensions Fund and 
25proceeds of bonds sold in fiscal year 2010 pursuant to Section 
267.2 of the General Obligation Bond Act, less (i) the pro rata 
 
 
HB0254- 23 -LRB099 04001 RPS 24018 b


1share of bond sale expenses determined by the System's share of 
2total bond proceeds, (ii) any amounts received from the General 
3Revenue Fund in fiscal year 2010, (iii) any reduction in bond 
4proceeds due to the issuance of discounted bonds, if 
5applicable. 
6 Notwithstanding any other provision of this Article, the

7total required State contribution for State fiscal year 2011 is

8the amount recertified by the System on or before April 1, 2011 
9pursuant to Section 15-165 and shall be made from the State 
10Pensions Fund and
proceeds of bonds sold in fiscal year 2011 
11pursuant to Section
7.2 of the General Obligation Bond Act, 
12less (i) the pro rata
share of bond sale expenses determined by 
13the System's share of
total bond proceeds, (ii) any amounts 
14received from the General
Revenue Fund in fiscal year 2011, and 
15(iii) any reduction in bond
proceeds due to the issuance of 
16discounted bonds, if
applicable. 
17 Beginning in State fiscal year 2046 2045, the minimum 
18contribution
for each fiscal year shall be the amount
needed to 
19maintain the total assets of the System at 100% of the total 
20liabilities of the System. 

21 Amounts received by the System pursuant to Section 25 of 
22the Budget Stabilization Act or Section 8.12 of the State 
23Finance Act in any fiscal year do not reduce and do not 
24constitute payment of any portion of the minimum State 
25contribution required under this Article in that fiscal year. 
26Such amounts shall not reduce, and shall not be included in the 
 
 
HB0254- 24 -LRB099 04001 RPS 24018 b


1calculation of, the required State contributions under this 
2Article in any future year until the System has reached a 
3funding ratio of at least 100%. A reference in this Article to 
4the "required State contribution" or any substantially similar 
5term does not include or apply to any amounts payable to the 
6System under Section 25 of the Budget Stabilization Act.
7 Notwithstanding any other provision of this Section, the 
8required State
contribution for State fiscal year 2005 and for 
9fiscal year 2008 and each fiscal year thereafter through State 
10fiscal year 2014, as
calculated under this Section and

11certified under Section 15-165, shall not exceed an amount 
12equal to (i) the
amount of the required State contribution that 
13would have been calculated under
this Section for that fiscal 
14year if the System had not received any payments
under 
15subsection (d) of Section 7.2 of the General Obligation Bond 
16Act, minus
(ii) the portion of the State's total debt service 
17payments for that fiscal
year on the bonds issued in fiscal 
18year 2003 for the purposes of that Section 7.2, as determined

19and certified by the Comptroller, that is the same as the 
20System's portion of
the total moneys distributed under 
21subsection (d) of Section 7.2 of the General
Obligation Bond 
22Act. In determining this maximum for State fiscal years 2008 
23through 2010, however, the amount referred to in item (i) shall 
24be increased, as a percentage of the applicable employee 
25payroll, in equal increments calculated from the sum of the 
26required State contribution for State fiscal year 2007 plus the 
 
 
HB0254- 25 -LRB099 04001 RPS 24018 b


1applicable portion of the State's total debt service payments 
2for fiscal year 2007 on the bonds issued in fiscal year 2003 
3for the purposes of Section 7.2 of the General
Obligation Bond 
4Act, so that, by State fiscal year 2011, the
State is 
5contributing at the rate otherwise required under this Section.

6 (b) If an employee is paid from trust or federal funds, the 
7employer
shall pay to the Board contributions from those funds 
8which are
sufficient to cover the accruing normal costs on 
9behalf of the employee.
However, universities having employees 
10who are compensated out of local
auxiliary funds, income funds, 
11or service enterprise funds are not required
to pay such 
12contributions on behalf of those employees. The local auxiliary

13funds, income funds, and service enterprise funds of 
14universities shall not be
considered trust funds for the 
15purpose of this Article, but funds of alumni
associations, 
16foundations, and athletic associations which are affiliated 
17with
the universities included as employers under this Article 
18and other employers
which do not receive State appropriations 
19are considered to be trust funds for
the purpose of this 
20Article.

21 (b-1) The City of Urbana and the City of Champaign shall 
22each make
employer contributions to this System for their 
23respective firefighter
employees who participate in this 
24System pursuant to subsection (h) of Section
15-107. The rate 
25of contributions to be made by those municipalities shall
be 
26determined annually by the Board on the basis of the actuarial 
 
 
HB0254- 26 -LRB099 04001 RPS 24018 b


1assumptions
adopted by the Board and the recommendations of the 
2actuary, and shall be
expressed as a percentage of salary for 
3each such employee. The Board shall
certify the rate to the 
4affected municipalities as soon as may be practical.
The 
5employer contributions required under this subsection shall be 
6remitted by
the municipality to the System at the same time and 
7in the same manner as
employee contributions.

8 (c) Through State fiscal year 1995: The total employer 
9contribution shall
be apportioned among the various funds of 
10the State and other employers,
whether trust, federal, or other 
11funds, in accordance with actuarial procedures
approved by the 
12Board. State of Illinois contributions for employers receiving

13State appropriations for personal services shall be payable 
14from appropriations
made to the employers or to the System. The 
15contributions for Class I
community colleges covering earnings 
16other than those paid from trust and
federal funds, shall be 
17payable solely from appropriations to the Illinois
Community 
18College Board or the System for employer contributions.

19 (d) Beginning in State fiscal year 1996, the required State 
20contributions
to the System shall be appropriated directly to 
21the System and shall be payable
through vouchers issued in 
22accordance with subsection (c) of Section 15-165, except as 
23provided in subsection (g).

24 (e) The State Comptroller shall draw warrants payable to 
25the System upon
proper certification by the System or by the 
26employer in accordance with the
appropriation laws and this 
 
 
HB0254- 27 -LRB099 04001 RPS 24018 b


1Code.

2 (f) Normal costs under this Section means liability for

3pensions and other benefits which accrues to the System because 
4of the
credits earned for service rendered by the participants 
5during the
fiscal year and expenses of administering the 
6System, but shall not
include the principal of or any 
7redemption premium or interest on any bonds
issued by the Board 
8or any expenses incurred or deposits required in
connection 
9therewith.

10 (g) If the amount of a participant's earnings for any 
11academic year used to determine the final rate of earnings, 
12determined on a full-time equivalent basis, exceeds the amount 
13of his or her earnings with the same employer for the previous 
14academic year, determined on a full-time equivalent basis, by 
15more than 6%, the participant's employer shall pay to the 
16System, in addition to all other payments required under this 
17Section and in accordance with guidelines established by the 
18System, the present value of the increase in benefits resulting 
19from the portion of the increase in earnings that is in excess 
20of 6%. This present value shall be computed by the System on 
21the basis of the actuarial assumptions and tables used in the 
22most recent actuarial valuation of the System that is available 
23at the time of the computation. The System may require the 
24employer to provide any pertinent information or 
25documentation.
26 Whenever it determines that a payment is or may be required 
 
 
HB0254- 28 -LRB099 04001 RPS 24018 b


1under this subsection (g), the System shall calculate the 
2amount of the payment and bill the employer for that amount. 
3The bill shall specify the calculations used to determine the 
4amount due. If the employer disputes the amount of the bill, it 
5may, within 30 days after receipt of the bill, apply to the 
6System in writing for a recalculation. The application must 
7specify in detail the grounds of the dispute and, if the 
8employer asserts that the calculation is subject to subsection 
9(h) or (i) of this Section, must include an affidavit setting 
10forth and attesting to all facts within the employer's 
11knowledge that are pertinent to the applicability of subsection 
12(h) or (i). Upon receiving a timely application for 
13recalculation, the System shall review the application and, if 
14appropriate, recalculate the amount due.

15 The employer contributions required under this subsection 
16(g) may be paid in the form of a lump sum within 90 days after 
17receipt of the bill. If the employer contributions are not paid 
18within 90 days after receipt of the bill, then interest will be 
19charged at a rate equal to the System's annual actuarially 
20assumed rate of return on investment compounded annually from 
21the 91st day after receipt of the bill. Payments must be 
22concluded within 3 years after the employer's receipt of the 
23bill.
24 (h) This subsection (h) applies only to payments made or 
25salary increases given on or after June 1, 2005 but before July 
261, 2011. The changes made by Public Act 94-1057 shall not 
 
 
HB0254- 29 -LRB099 04001 RPS 24018 b


1require the System to refund any payments received before July 
231, 2006 (the effective date of Public Act 94-1057).
3 When assessing payment for any amount due under subsection 
4(g), the System shall exclude earnings increases paid to 
5participants under contracts or collective bargaining 
6agreements entered into, amended, or renewed before June 1, 
72005.

8 When assessing payment for any amount due under subsection 
9(g), the System shall exclude earnings increases paid to a 
10participant at a time when the participant is 10 or more years 
11from retirement eligibility under Section 15-135.

12 When assessing payment for any amount due under subsection 
13(g), the System shall exclude earnings increases resulting from 
14overload work, including a contract for summer teaching, or 
15overtime when the employer has certified to the System, and the 
16System has approved the certification, that: (i) in the case of 
17overloads (A) the overload work is for the sole purpose of 
18academic instruction in excess of the standard number of 
19instruction hours for a full-time employee occurring during the 
20academic year that the overload is paid and (B) the earnings 
21increases are equal to or less than the rate of pay for 
22academic instruction computed using the participant's current 
23salary rate and work schedule; and (ii) in the case of 
24overtime, the overtime was necessary for the educational 
25mission.
26 When assessing payment for any amount due under subsection 
 
 
HB0254- 30 -LRB099 04001 RPS 24018 b


1(g), the System shall exclude any earnings increase resulting 
2from (i) a promotion for which the employee moves from one 
3classification to a higher classification under the State 
4Universities Civil Service System, (ii) a promotion in academic 
5rank for a tenured or tenure-track faculty position, or (iii) a 
6promotion that the Illinois Community College Board has 
7recommended in accordance with subsection (k) of this Section. 
8These earnings increases shall be excluded only if the 
9promotion is to a position that has existed and been filled by 
10a member for no less than one complete academic year and the 
11earnings increase as a result of the promotion is an increase 
12that results in an amount no greater than the average salary 
13paid for other similar positions.
14 (i) When assessing payment for any amount due under 
15subsection (g), the System shall exclude any salary increase 
16described in subsection (h) of this Section given on or after 
17July 1, 2011 but before July 1, 2014 under a contract or 
18collective bargaining agreement entered into, amended, or 
19renewed on or after June 1, 2005 but before July 1, 2011. 
20Notwithstanding any other provision of this Section, any 
21payments made or salary increases given after June 30, 2014 
22shall be used in assessing payment for any amount due under 
23subsection (g) of this Section.

24 (j) The System shall prepare a report and file copies of 
25the report with the Governor and the General Assembly by 
26January 1, 2007 that contains all of the following information:
 
 
HB0254- 31 -LRB099 04001 RPS 24018 b


1  (1) The number of recalculations required by the 
2 changes made to this Section by Public Act 94-1057 for each 
3 employer.
4  (2) The dollar amount by which each employer's 
5 contribution to the System was changed due to 
6 recalculations required by Public Act 94-1057.
7  (3) The total amount the System received from each 
8 employer as a result of the changes made to this Section by 
9 Public Act 94-4.
10  (4) The increase in the required State contribution 
11 resulting from the changes made to this Section by Public 
12 Act 94-1057.
13 (k) The Illinois Community College Board shall adopt rules 
14for recommending lists of promotional positions submitted to 
15the Board by community colleges and for reviewing the 
16promotional lists on an annual basis. When recommending 
17promotional lists, the Board shall consider the similarity of 
18the positions submitted to those positions recognized for State 
19universities by the State Universities Civil Service System. 
20The Illinois Community College Board shall file a copy of its 
21findings with the System. The System shall consider the 
22findings of the Illinois Community College Board when making 
23determinations under this Section. The System shall not exclude 
24any earnings increases resulting from a promotion when the 
25promotion was not submitted by a community college. Nothing in 
26this subsection (k) shall require any community college to 
 
 
HB0254- 32 -LRB099 04001 RPS 24018 b


1submit any information to the Community College Board.

2 (l) For purposes of determining the required State 
3contribution to the System, the value of the System's assets 
4shall be equal to the actuarial value of the System's assets, 
5which shall be calculated as follows:
6 As of June 30, 2008, the actuarial value of the System's 
7assets shall be equal to the market value of the assets as of 
8that date. In determining the actuarial value of the System's 
9assets for fiscal years after June 30, 2008, any actuarial 
10gains or losses from investment return incurred in a fiscal 
11year shall be recognized in equal annual amounts over the 
125-year period following that fiscal year. 
13 (m) For purposes of determining the required State 
14contribution to the system for a particular year, the actuarial 
15value of assets shall be assumed to earn a rate of return equal 
16to the system's actuarially assumed rate of return. 
17(Source: P.A. 97-813, eff. 7-13-12; 98-92, eff. 7-16-13; 
1898-463, eff. 8-16-13; 98-599, eff. 6-1-14.)




19 (40 ILCS 5/16-158)
 (from Ch. 108 1/2, par. 16-158)


20 Sec. 16-158. Contributions by State and other employing 
21units. 

22 (a) The State shall make contributions to the System by 
23means of
appropriations from the Common School Fund and other 
24State funds of amounts
which, together with other employer 
25contributions, employee contributions,
investment income, and 
 
 
HB0254- 33 -LRB099 04001 RPS 24018 b


1other income, will be sufficient to meet the cost of

2maintaining and administering the System on a 100% funded basis 
3in accordance
with actuarial recommendations by the end of 
4State fiscal year 2044.

5 The Board shall determine the amount of State contributions 
6required for
each fiscal year on the basis of the actuarial 
7tables and other assumptions
adopted by the Board and the 
8recommendations of the actuary, using the formula
in subsection 
9(b-3).

10 (a-1) Annually, on or before November 15 through November 
1115, 2011, the Board shall certify to the
Governor the amount of 
12the required State contribution for the coming fiscal
year. The 
13certification under this subsection (a-1) shall include a copy 
14of the actuarial recommendations
upon which it is based.

15 On or before May 1, 2004, the Board shall recalculate and 
16recertify to
the Governor the amount of the required State 
17contribution to the System for
State fiscal year 2005, taking 
18into account the amounts appropriated to and
received by the 
19System under subsection (d) of Section 7.2 of the General

20Obligation Bond Act.

21 On or before July 1, 2005, the Board shall recalculate and 
22recertify
to the Governor the amount of the required State

23contribution to the System for State fiscal year 2006, taking 
24into account the changes in required State contributions made 
25by this amendatory Act of the 94th General Assembly.

26 On or before April 1, 2011, the Board shall recalculate and 
 
 
HB0254- 34 -LRB099 04001 RPS 24018 b


1recertify to the Governor the amount of the required State 
2contribution to the System for State fiscal year 2011, applying 
3the changes made by Public Act 96-889 to the System's assets 
4and liabilities as of June 30, 2009 as though Public Act 96-889 
5was approved on that date. 
6 (a-5) On or before November 1 of each year, beginning 
7November 1, 2012, the Board shall submit to the State Actuary, 
8the Governor, and the General Assembly a proposed certification 
9of the amount of the required State contribution to the System 
10for the next fiscal year, along with all of the actuarial 
11assumptions, calculations, and data upon which that proposed 
12certification is based. On or before January 1 of each year, 
13beginning January 1, 2013, the State Actuary shall issue a 
14preliminary report concerning the proposed certification and 
15identifying, if necessary, recommended changes in actuarial 
16assumptions that the Board must consider before finalizing its 
17certification of the required State contributions.
18 On or before January 15, 2013 and each January 15 
19thereafter, the Board shall certify to the Governor and the 
20General Assembly the amount of the required State contribution 
21for the next fiscal year. The certification shall include a 
22copy of the actuarial
recommendations upon which it is based 
23and shall specifically identify the System's projected State 
24normal cost for that fiscal year. The Board's certification 
25must note any deviations from the State Actuary's recommended 
26changes, the reason or reasons for not following the State 
 
 
HB0254- 35 -LRB099 04001 RPS 24018 b


1Actuary's recommended changes, and the fiscal impact of not 
2following the State Actuary's recommended changes on the 
3required State contribution. 
4 (a-10) For purposes of Section (c-5) of Section 20 of the 
5Budget Stabilization Act, on or before November 1 of each year 
6beginning November 1, 2014, the Board shall determine the 
7amount of the State contribution to the System that would have 
8been required for the next fiscal year if this amendatory Act 
9of the 98th General Assembly had not taken effect, using the 
10best and most recent available data but based on the law in 
11effect on May 31, 2014. The Board shall submit to the State 
12Actuary, the Governor, and the General Assembly a proposed 
13certification, along with the relevant law, actuarial 
14assumptions, calculations, and data upon which that 
15certification is based. On or before January 1, 2015 and every 
16January 1 thereafter, the State Actuary shall issue a 
17preliminary report concerning the proposed certification and 
18identifying, if necessary, recommended changes in actuarial 
19assumptions that the Board must consider before finalizing its 
20certification. On or before January 15, 2015 and every January 
211 thereafter, the Board shall certify to the Governor and the 
22General Assembly the amount of the State contribution to the 
23System that would have been required for the next fiscal year 
24if this amendatory Act of the 98th General Assembly had not 
25taken effect, using the best and most recent available data but 
26based on the law in effect on May 31, 2014. The Board's 
 
 
HB0254- 36 -LRB099 04001 RPS 24018 b


1certification must note any deviations from the State Actuary's 
2recommended changes, the reason or reasons for not following 
3the State Actuary's recommended changes, and the impact of not 
4following the State Actuary's recommended changes. 
5 (b) Through State fiscal year 1995, the State contributions 
6shall be
paid to the System in accordance with Section 18-7 of 
7the School Code.

8 (b-1) Beginning in State fiscal year 1996, on the 15th day 
9of each month,
or as soon thereafter as may be practicable, the 
10Board shall submit vouchers
for payment of State contributions 
11to the System, in a total monthly amount of
one-twelfth of the 
12required annual State contribution certified under
subsection 
13(a-1).
From the
effective date of this amendatory Act of the 
1493rd General Assembly
through June 30, 2004, the Board shall 
15not submit vouchers for the
remainder of fiscal year 2004 in 
16excess of the fiscal year 2004
certified contribution amount 
17determined under this Section
after taking into consideration 
18the transfer to the System
under subsection (a) of Section 
196z-61 of the State Finance Act.
These vouchers shall be paid by 
20the State Comptroller and
Treasurer by warrants drawn on the 
21funds appropriated to the System for that
fiscal year.

22 If in any month the amount remaining unexpended from all 
23other appropriations
to the System for the applicable fiscal 
24year (including the appropriations to
the System under Section 
258.12 of the State Finance Act and Section 1 of the
State 
26Pension Funds Continuing Appropriation Act) is less than the 
 
 
HB0254- 37 -LRB099 04001 RPS 24018 b


1amount
lawfully vouchered under this subsection, the 
2difference shall be paid from the
Common School Fund under the 
3continuing appropriation authority provided in
Section 1.1 of 
4the State Pension Funds Continuing Appropriation Act.

5 (b-2) Allocations from the Common School Fund apportioned 
6to school
districts not coming under this System shall not be 
7diminished or affected by
the provisions of this Article.

8 (b-3) For State fiscal years 2016 through 2045, the minimum

9contribution to the System to be made by the State for each

10fiscal year shall be an amount determined by the System to be

11sufficient to bring the total assets of the System up to 100%

12of the total actuarial liabilities of the System by the end of 
13State fiscal year 2045. In making these determinations, the 
14required State contribution shall be calculated each year as a 
15level percentage of payroll over the years remaining to and 
16including fiscal year 2045 and shall be determined under the 
17projected unit credit actuarial cost method. 
18 For State fiscal year years 2015 through 2044, the minimum 
19contribution
to the System to be made by the State for the each 
20fiscal year shall be an amount
determined by the System to be 
21equal to the sum of (1) the State's portion of the projected 
22normal cost for the that fiscal year, plus (2) an amount 
23sufficient to bring the total assets of the
System up to 100% 
24of the total actuarial liabilities of the System by the end of

25State fiscal year 2044. In making these determinations, the 
26required State
contribution shall be calculated each year as a 
 
 
HB0254- 38 -LRB099 04001 RPS 24018 b


1level percentage of payroll
over the years remaining to and 
2including fiscal year 2044 and shall be
determined under the 
3projected unit cost method for fiscal year 2015 and under the 
4entry age normal actuarial cost method for fiscal years 2016 
5through 2044.
6 For State fiscal years 2012 through 2014, the minimum 
7contribution
to the System to be made by the State for each 
8fiscal year shall be an amount
determined by the System to be 
9sufficient to bring the total assets of the
System up to 90% of 
10the total actuarial liabilities of the System by the end of

11State fiscal year 2045. In making these determinations, the 
12required State
contribution shall be calculated each year as a 
13level percentage of payroll
over the years remaining to and 
14including fiscal year 2045 and shall be
determined under the 
15projected unit credit actuarial cost method.

16 For State fiscal years 1996 through 2005, the State 
17contribution to the
System, as a percentage of the applicable 
18employee payroll, shall be increased
in equal annual increments 
19so that by State fiscal year 2011, the State is
contributing at 
20the rate required under this Section; except that in the

21following specified State fiscal years, the State contribution 
22to the System
shall not be less than the following indicated 
23percentages of the applicable
employee payroll, even if the 
24indicated percentage will produce a State
contribution in 
25excess of the amount otherwise required under this subsection

26and subsection (a), and notwithstanding any contrary 
 
 
HB0254- 39 -LRB099 04001 RPS 24018 b


1certification made under
subsection (a-1) before the effective 
2date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% 
3in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY 
42003; and
13.56% in FY 2004.

5 Notwithstanding any other provision of this Article, the 
6total required State
contribution for State fiscal year 2006 is 
7$534,627,700.

8 Notwithstanding any other provision of this Article, the 
9total required State
contribution for State fiscal year 2007 is 
10$738,014,500.

11 For each of State fiscal years 2008 through 2009, the State 
12contribution to
the System, as a percentage of the applicable 
13employee payroll, shall be
increased in equal annual increments 
14from the required State contribution for State fiscal year 
152007, so that by State fiscal year 2011, the
State is 
16contributing at the rate otherwise required under this Section.

17 Notwithstanding any other provision of this Article, the 
18total required State contribution for State fiscal year 2010 is 
19$2,089,268,000 and shall be made from the proceeds of bonds 
20sold in fiscal year 2010 pursuant to Section 7.2 of the General 
21Obligation Bond Act, less (i) the pro rata share of bond sale 
22expenses determined by the System's share of total bond 
23proceeds, (ii) any amounts received from the Common School Fund 
24in fiscal year 2010, and (iii) any reduction in bond proceeds 
25due to the issuance of discounted bonds, if applicable. 
26 Notwithstanding any other provision of this Article, the

 
 
HB0254- 40 -LRB099 04001 RPS 24018 b


1total required State contribution for State fiscal year 2011 is

2the amount recertified by the System on or before April 1, 2011 
3pursuant to subsection (a-1) of this Section and shall be made 
4from the proceeds of bonds
sold in fiscal year 2011 pursuant to 
5Section 7.2 of the General
Obligation Bond Act, less (i) the 
6pro rata share of bond sale
expenses determined by the System's 
7share of total bond
proceeds, (ii) any amounts received from 
8the Common School Fund
in fiscal year 2011, and (iii) any 
9reduction in bond proceeds
due to the issuance of discounted 
10bonds, if applicable. This amount shall include, in addition to 
11the amount certified by the System, an amount necessary to meet 
12employer contributions required by the State as an employer 
13under paragraph (e) of this Section, which may also be used by 
14the System for contributions required by paragraph (a) of 
15Section 16-127. 
16 Beginning in State fiscal year 2046 2045, the minimum State 
17contribution for each fiscal year shall be the amount needed to 
18maintain the total assets of the System at 100% of the total 
19actuarial liabilities of the System. 

20 Amounts received by the System pursuant to Section 25 of 
21the Budget Stabilization Act or Section 8.12 of the State 
22Finance Act in any fiscal year do not reduce and do not 
23constitute payment of any portion of the minimum State 
24contribution required under this Article in that fiscal year. 
25Such amounts shall not reduce, and shall not be included in the 
26calculation of, the required State contributions under this 
 
 
HB0254- 41 -LRB099 04001 RPS 24018 b


1Article in any future year until the System has reached a 
2funding ratio of at least 100%. A reference in this Article to 
3the "required State contribution" or any substantially similar 
4term does not include or apply to any amounts payable to the 
5System under Section 25 of the Budget Stabilization Act.
6 Notwithstanding any other provision of this Section, the 
7required State
contribution for State fiscal year 2005 and for 
8fiscal year 2008 and each fiscal year thereafter through State 
9fiscal year 2014, as
calculated under this Section and

10certified under subsection (a-1), shall not exceed an amount 
11equal to (i) the
amount of the required State contribution that 
12would have been calculated under
this Section for that fiscal 
13year if the System had not received any payments
under 
14subsection (d) of Section 7.2 of the General Obligation Bond 
15Act, minus
(ii) the portion of the State's total debt service 
16payments for that fiscal
year on the bonds issued in fiscal 
17year 2003 for the purposes of that Section 7.2, as determined

18and certified by the Comptroller, that is the same as the 
19System's portion of
the total moneys distributed under 
20subsection (d) of Section 7.2 of the General
Obligation Bond 
21Act. In determining this maximum for State fiscal years 2008 
22through 2010, however, the amount referred to in item (i) shall 
23be increased, as a percentage of the applicable employee 
24payroll, in equal increments calculated from the sum of the 
25required State contribution for State fiscal year 2007 plus the 
26applicable portion of the State's total debt service payments 
 
 
HB0254- 42 -LRB099 04001 RPS 24018 b


1for fiscal year 2007 on the bonds issued in fiscal year 2003 
2for the purposes of Section 7.2 of the General
Obligation Bond 
3Act, so that, by State fiscal year 2011, the
State is 
4contributing at the rate otherwise required under this Section.

5 (c) Payment of the required State contributions and of all 
6pensions,
retirement annuities, death benefits, refunds, and 
7other benefits granted
under or assumed by this System, and all 
8expenses in connection with the
administration and operation 
9thereof, are obligations of the State.

10 If members are paid from special trust or federal funds 
11which are
administered by the employing unit, whether school 
12district or other
unit, the employing unit shall pay to the 
13System from such
funds the full accruing retirement costs based 
14upon that
service, which, beginning July 1, 2014, shall be at a 
15rate, expressed as a percentage of salary, equal to the total 
16minimum contribution
to the System to be made by the State for 
17that fiscal year, including both normal cost and unfunded 
18liability components, expressed as a percentage of payroll, as 
19determined by the System under subsection (b-3) of this 
20Section. Employer contributions, based on
salary paid to 
21members from federal funds, may be forwarded by the 
22distributing
agency of the State of Illinois to the System 
23prior to allocation, in an
amount determined in accordance with 
24guidelines established by such
agency and the System. Any 
25contribution for fiscal year 2015 collected as a result of the 
26change made by this amendatory Act of the 98th General Assembly 
 
 
HB0254- 43 -LRB099 04001 RPS 24018 b


1shall be considered a State contribution under subsection (b-3) 
2of this Section. 

3 (d) Effective July 1, 1986, any employer of a teacher as 
4defined in
paragraph (8) of Section 16-106 shall pay the 
5employer's normal cost
of benefits based upon the teacher's 
6service, in addition to
employee contributions, as determined 
7by the System. Such employer
contributions shall be forwarded 
8monthly in accordance with guidelines
established by the 
9System.

10 However, with respect to benefits granted under Section 
1116-133.4 or
16-133.5 to a teacher as defined in paragraph (8) 
12of Section 16-106, the
employer's contribution shall be 12% 
13(rather than 20%) of the member's
highest annual salary rate 
14for each year of creditable service granted, and
the employer 
15shall also pay the required employee contribution on behalf of

16the teacher. For the purposes of Sections 16-133.4 and 
1716-133.5, a teacher
as defined in paragraph (8) of Section 
1816-106 who is serving in that capacity
while on leave of 
19absence from another employer under this Article shall not
be 
20considered an employee of the employer from which the teacher 
21is on leave.

22 (e) Beginning July 1, 1998, every employer of a teacher

23shall pay to the System an employer contribution computed as 
24follows:


25  (1) Beginning July 1, 1998 through June 30, 1999, the 
26 employer
contribution shall be equal to 0.3% of each 
 
 
HB0254- 44 -LRB099 04001 RPS 24018 b


1 teacher's salary.


2  (2) Beginning July 1, 1999 and thereafter, the employer

3 contribution shall be equal to 0.58% of each teacher's 
4 salary.

5The school district or other employing unit may pay these 
6employer
contributions out of any source of funding available 
7for that purpose and
shall forward the contributions to the 
8System on the schedule established
for the payment of member 
9contributions.

10 These employer contributions are intended to offset a 
11portion of the cost
to the System of the increases in 
12retirement benefits resulting from this
amendatory Act of 1998.

13 Each employer of teachers is entitled to a credit against 
14the contributions
required under this subsection (e) with 
15respect to salaries paid to teachers
for the period January 1, 
162002 through June 30, 2003, equal to the amount paid
by that 
17employer under subsection (a-5) of Section 6.6 of the State 
18Employees
Group Insurance Act of 1971 with respect to salaries 
19paid to teachers for that
period.

20 The additional 1% employee contribution required under 
21Section 16-152 by
this amendatory Act of 1998 is the 
22responsibility of the teacher and not the
teacher's employer, 
23unless the employer agrees, through collective bargaining
or 
24otherwise, to make the contribution on behalf of the teacher.

25 If an employer is required by a contract in effect on May 
261, 1998 between the
employer and an employee organization to 
 
 
HB0254- 45 -LRB099 04001 RPS 24018 b


1pay, on behalf of all its full-time
employees
covered by this 
2Article, all mandatory employee contributions required under

3this Article, then the employer shall be excused from paying 
4the employer
contribution required under this subsection (e) 
5for the balance of the term
of that contract. The employer and 
6the employee organization shall jointly
certify to the System 
7the existence of the contractual requirement, in such
form as 
8the System may prescribe. This exclusion shall cease upon the

9termination, extension, or renewal of the contract at any time 
10after May 1,
1998.

11 (f) If the amount of a teacher's salary for any school year 
12used to determine final average salary exceeds the member's 
13annual full-time salary rate with the same employer for the 
14previous school year by more than 6%, the teacher's employer 
15shall pay to the System, in addition to all other payments 
16required under this Section and in accordance with guidelines 
17established by the System, the present value of the increase in 
18benefits resulting from the portion of the increase in salary 
19that is in excess of 6%. This present value shall be computed 
20by the System on the basis of the actuarial assumptions and 
21tables used in the most recent actuarial valuation of the 
22System that is available at the time of the computation. If a 
23teacher's salary for the 2005-2006 school year is used to 
24determine final average salary under this subsection (f), then 
25the changes made to this subsection (f) by Public Act 94-1057 
26shall apply in calculating whether the increase in his or her 
 
 
HB0254- 46 -LRB099 04001 RPS 24018 b


1salary is in excess of 6%. For the purposes of this Section, 
2change in employment under Section 10-21.12 of the School Code 
3on or after June 1, 2005 shall constitute a change in employer. 
4The System may require the employer to provide any pertinent 
5information or documentation.
The changes made to this 
6subsection (f) by this amendatory Act of the 94th General 
7Assembly apply without regard to whether the teacher was in 
8service on or after its effective date.

9 Whenever it determines that a payment is or may be required 
10under this subsection, the System shall calculate the amount of 
11the payment and bill the employer for that amount. The bill 
12shall specify the calculations used to determine the amount 
13due. If the employer disputes the amount of the bill, it may, 
14within 30 days after receipt of the bill, apply to the System 
15in writing for a recalculation. The application must specify in 
16detail the grounds of the dispute and, if the employer asserts 
17that the calculation is subject to subsection (g) or (h) of 
18this Section, must include an affidavit setting forth and 
19attesting to all facts within the employer's knowledge that are 
20pertinent to the applicability of that subsection. Upon 
21receiving a timely application for recalculation, the System 
22shall review the application and, if appropriate, recalculate 
23the amount due.


24 The employer contributions required under this subsection 
25(f) may be paid in the form of a lump sum within 90 days after 
26receipt of the bill. If the employer contributions are not paid 
 
 
HB0254- 47 -LRB099 04001 RPS 24018 b


1within 90 days after receipt of the bill, then interest will be 
2charged at a rate equal to the System's annual actuarially 
3assumed rate of return on investment compounded annually from 
4the 91st day after receipt of the bill. Payments must be 
5concluded within 3 years after the employer's receipt of the 
6bill.

7 (g) This subsection (g) applies only to payments made or 
8salary increases given on or after June 1, 2005 but before July 
91, 2011. The changes made by Public Act 94-1057 shall not 
10require the System to refund any payments received before
July 
1131, 2006 (the effective date of Public Act 94-1057).
12 When assessing payment for any amount due under subsection 
13(f), the System shall exclude salary increases paid to teachers 
14under contracts or collective bargaining agreements entered 
15into, amended, or renewed before June 1, 2005.

16 When assessing payment for any amount due under subsection 
17(f), the System shall exclude salary increases paid to a 
18teacher at a time when the teacher is 10 or more years from 
19retirement eligibility under Section 16-132 or 16-133.2.

20 When assessing payment for any amount due under subsection 
21(f), the System shall exclude salary increases resulting from 
22overload work, including summer school, when the school 
23district has certified to the System, and the System has 
24approved the certification, that (i) the overload work is for 
25the sole purpose of classroom instruction in excess of the 
26standard number of classes for a full-time teacher in a school 
 
 
HB0254- 48 -LRB099 04001 RPS 24018 b


1district during a school year and (ii) the salary increases are 
2equal to or less than the rate of pay for classroom instruction 
3computed on the teacher's current salary and work schedule.

4 When assessing payment for any amount due under subsection 
5(f), the System shall exclude a salary increase resulting from 
6a promotion (i) for which the employee is required to hold a 
7certificate or supervisory endorsement issued by the State 
8Teacher Certification Board that is a different certification 
9or supervisory endorsement than is required for the teacher's 
10previous position and (ii) to a position that has existed and 
11been filled by a member for no less than one complete academic 
12year and the salary increase from the promotion is an increase 
13that results in an amount no greater than the lesser of the 
14average salary paid for other similar positions in the district 
15requiring the same certification or the amount stipulated in 
16the collective bargaining agreement for a similar position 
17requiring the same certification.

18 When assessing payment for any amount due under subsection 
19(f), the System shall exclude any payment to the teacher from 
20the State of Illinois or the State Board of Education over 
21which the employer does not have discretion, notwithstanding 
22that the payment is included in the computation of final 
23average salary.

24 (h) When assessing payment for any amount due under 
25subsection (f), the System shall exclude any salary increase 
26described in subsection (g) of this Section given on or after 
 
 
HB0254- 49 -LRB099 04001 RPS 24018 b


1July 1, 2011 but before July 1, 2014 under a contract or 
2collective bargaining agreement entered into, amended, or 
3renewed on or after June 1, 2005 but before July 1, 2011. 
4Notwithstanding any other provision of this Section, any 
5payments made or salary increases given after June 30, 2014 
6shall be used in assessing payment for any amount due under 
7subsection (f) of this Section.

8 (i) The System shall prepare a report and file copies of 
9the report with the Governor and the General Assembly by 
10January 1, 2007 that contains all of the following information:
11  (1) The number of recalculations required by the 
12 changes made to this Section by Public Act 94-1057 for each 
13 employer.
14  (2) The dollar amount by which each employer's 
15 contribution to the System was changed due to 
16 recalculations required by Public Act 94-1057.
17  (3) The total amount the System received from each 
18 employer as a result of the changes made to this Section by 
19 Public Act 94-4.
20  (4) The increase in the required State contribution 
21 resulting from the changes made to this Section by Public 
22 Act 94-1057.

23 (j) For purposes of determining the required State 
24contribution to the System, the value of the System's assets 
25shall be equal to the actuarial value of the System's assets, 
26which shall be calculated as follows:
 
 
HB0254- 50 -LRB099 04001 RPS 24018 b


1 As of June 30, 2008, the actuarial value of the System's 
2assets shall be equal to the market value of the assets as of 
3that date. In determining the actuarial value of the System's 
4assets for fiscal years after June 30, 2008, any actuarial 
5gains or losses from investment return incurred in a fiscal 
6year shall be recognized in equal annual amounts over the 
75-year period following that fiscal year. 
8 (k) For purposes of determining the required State 
9contribution to the system for a particular year, the actuarial 
10value of assets shall be assumed to earn a rate of return equal 
11to the system's actuarially assumed rate of return. 
12(Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12; 
1398-599, eff. 6-1-14; 98-674, eff. 6-30-14.)





14 (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)


15 Sec. 18-131. Financing; employer contributions. 

16 (a) The State of Illinois shall make contributions to this 
17System by
appropriations of the amounts which, together with 
18the contributions of
participants, net earnings on 
19investments, and other income, will meet the
costs of 
20maintaining and administering this System on a 100% 90% funded 
21basis in
accordance with actuarial recommendations.

22 (b) The Board shall determine the amount of State 
23contributions
required for each fiscal year on the basis of the 
24actuarial tables and other
assumptions adopted by the Board and 
25the prescribed rate of interest, using
the formula in 
 
 
HB0254- 51 -LRB099 04001 RPS 24018 b


1subsection (c).

2 (c) For State fiscal years 2016 through 2045, the minimum 
3contribution to the System to be made by the State for each 
4fiscal year shall be an amount determined by the System to be 
5sufficient to bring the total assets of the System up to 100% 
6of the total actuarial liabilities of the System by the end of 
7State fiscal year 2045. In making these determinations, the 
8required State contribution shall be calculated each year as a 
9level percentage of payroll over the years remaining to and 
10including fiscal year 2045 and shall be determined under the 
11projected unit credit actuarial cost method. 
12 For State fiscal years 2012 through 2015 2045, the minimum 
13contribution
to the System to be made by the State for each 
14fiscal year shall be an amount
determined by the System to be 
15sufficient to bring the total assets of the
System up to 90% of 
16the total actuarial liabilities of the System by the end of

17State fiscal year 2045. In making these determinations, the 
18required State
contribution shall be calculated each year as a 
19level percentage of payroll
over the years remaining to and 
20including fiscal year 2045 and shall be
determined under the 
21projected unit credit actuarial cost method.

22 For State fiscal years 1996 through 2005, the State 
23contribution to
the System, as a percentage of the applicable 
24employee payroll, shall be
increased in equal annual increments 
25so that by State fiscal year 2011, the
State is contributing at 
26the rate required under this Section.

 
 
HB0254- 52 -LRB099 04001 RPS 24018 b


1 Notwithstanding any other provision of this Article, the 
2total required State
contribution for State fiscal year 2006 is 
3$29,189,400.

4 Notwithstanding any other provision of this Article, the 
5total required State
contribution for State fiscal year 2007 is 
6$35,236,800.

7 For each of State fiscal years 2008 through 2009, the State 
8contribution to
the System, as a percentage of the applicable 
9employee payroll, shall be
increased in equal annual increments 
10from the required State contribution for State fiscal year 
112007, so that by State fiscal year 2011, the
State is 
12contributing at the rate otherwise required under this Section.

13 Notwithstanding any other provision of this Article, the 
14total required State contribution for State fiscal year 2010 is 
15$78,832,000 and shall be made from the proceeds of bonds sold 
16in fiscal year 2010 pursuant to Section 7.2 of the General 
17Obligation Bond Act, less (i) the pro rata share of bond sale 
18expenses determined by the System's share of total bond 
19proceeds, (ii) any amounts received from the General Revenue 
20Fund in fiscal year 2010, and (iii) any reduction in bond 
21proceeds due to the issuance of discounted bonds, if 
22applicable. 
23 Notwithstanding any other provision of this Article, the 
24total required State contribution for State fiscal year 2011 is

25the amount recertified by the System on or before April 1, 2011 
26pursuant to Section 18-140 and shall be made from the proceeds 
 
 
HB0254- 53 -LRB099 04001 RPS 24018 b


1of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of 
2the General
Obligation Bond Act, less (i) the pro rata share of 
3bond sale
expenses determined by the System's share of total 
4bond
proceeds, (ii) any amounts received from the General 
5Revenue
Fund in fiscal year 2011, and (iii) any reduction in 
6bond
proceeds due to the issuance of discounted bonds, if

7applicable. 
8 Beginning in State fiscal year 2046, the minimum State 
9contribution for
each fiscal year shall be the amount needed to 
10maintain the total assets of
the System at 100% 90% of the 
11total actuarial liabilities of the System.

12 Amounts received by the System pursuant to Section 25 of 
13the Budget Stabilization Act or Section 8.12 of the State 
14Finance Act in any fiscal year do not reduce and do not 
15constitute payment of any portion of the minimum State 
16contribution required under this Article in that fiscal year. 
17Such amounts shall not reduce, and shall not be included in the 
18calculation of, the required State contributions under this 
19Article in any future year until the System has reached a 
20funding ratio of at least 100% 90%. A reference in this Article 
21to the "required State contribution" or any substantially 
22similar term does not include or apply to any amounts payable 
23to the System under Section 25 of the Budget Stabilization Act.

24 Notwithstanding any other provision of this Section, the 
25required State
contribution for State fiscal year 2005 and for 
26fiscal year 2008 and each fiscal year thereafter, as
calculated 
 
 
HB0254- 54 -LRB099 04001 RPS 24018 b


1under this Section and
certified under Section 18-140, shall 
2not exceed an amount equal to (i) the
amount of the required 
3State contribution that would have been calculated under
this 
4Section for that fiscal year if the System had not received any 
5payments
under subsection (d) of Section 7.2 of the General 
6Obligation Bond Act, minus
(ii) the portion of the State's 
7total debt service payments for that fiscal
year on the bonds 
8issued in fiscal year 2003 for the purposes of that Section 
97.2, as determined
and certified by the Comptroller, that is 
10the same as the System's portion of
the total moneys 
11distributed under subsection (d) of Section 7.2 of the General

12Obligation Bond Act. In determining this maximum for State 
13fiscal years 2008 through 2010, however, the amount referred to 
14in item (i) shall be increased, as a percentage of the 
15applicable employee payroll, in equal increments calculated 
16from the sum of the required State contribution for State 
17fiscal year 2007 plus the applicable portion of the State's 
18total debt service payments for fiscal year 2007 on the bonds 
19issued in fiscal year 2003 for the purposes of Section 7.2 of 
20the General
Obligation Bond Act, so that, by State fiscal year 
212011, the
State is contributing at the rate otherwise required 
22under this Section.

23 (d) For purposes of determining the required State 
24contribution to the System, the value of the System's assets 
25shall be equal to the actuarial value of the System's assets, 
26which shall be calculated as follows:
 
 
HB0254- 55 -LRB099 04001 RPS 24018 b


1 As of June 30, 2008, the actuarial value of the System's 
2assets shall be equal to the market value of the assets as of 
3that date. In determining the actuarial value of the System's 
4assets for fiscal years after June 30, 2008, any actuarial 
5gains or losses from investment return incurred in a fiscal 
6year shall be recognized in equal annual amounts over the 
75-year period following that fiscal year. 
8 (e) For purposes of determining the required State 
9contribution to the system for a particular year, the actuarial 
10value of assets shall be assumed to earn a rate of return equal 
11to the system's actuarially assumed rate of return. 
12(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 
1396-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. 
147-13-12.)



15 Section 99. Effective date. This Act takes effect upon 
16becoming law.