103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5851
 
Introduced , by Rep. Stephanie A. Kifowit
 
SYNOPSIS AS INTRODUCED:

30 ILCS 122/20
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
40 ILCS 5/1-103.3 rep.
 Amends the Budget Stabilization Act. Provides a transfer of specified amounts from the General Revenue Fund to the Pension Stabilization Fund for fiscal years 2030 through 2040. Amends the Illinois Pension Code. With regard to each of the 5 State-funded retirement systems, provides that for State fiscal years 2026 through 2034, the minimum contribution to the System to be made by the State for each State fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 100% of the total actuarial liabilities of the System by the end of State fiscal year 2048. Provides that the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2048 and shall be determined under the projected unit credit actuarial cost method. Provides that for State fiscal years 2035 through 2048, the minimum contribution to the System to be made by the State for each State fiscal year shall be the contribution amount for the upcoming State fiscal year estimated in the previous year's actuarial valuation plus an adjustment for differences between the unfunded liability reported in the current actuarial valuation and the unfunded liability reported in the previous year's actuarial valuation, such that the total assets of the System equal 100% of the total actuarial liabilities of the System 20 years after the State fiscal year during which the contribution is made. Sets forth a funding formula for State fiscal year 2049 and thereafter. Repeals a provision requiring the Commission on Government Forecasting and Accountability to consider and determine whether certain funding goals are appropriate. Makes conforming and other changes. Effective immediately.


LRB103 40703 RPS 73498 b


 
 
A BILL FOR
 
HB5851LRB103 40703 RPS 73498 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. The Budget Stabilization Act is amended by 
5changing Section 20 as follows:

6 (30 ILCS 122/20)
7 (Text of Section WITHOUT the changes made by P.A. 98-599, 
8which has been held unconstitutional)
9 Sec. 20. Pension Stabilization Fund.
10 (a) The Pension Stabilization Fund is hereby created as a 
11special fund in the State treasury. Moneys in the fund shall be 
12used for the sole purpose of making payments to the designated 
13retirement systems as provided in Section 25. 
14 (b) For each fiscal year when the General Assembly's 
15appropriations and transfers or diversions as required by law 
16from general funds do not exceed 99% of the estimated general 
17funds revenues pursuant to subsection (a) of Section 10, the 
18Comptroller shall transfer from the General Revenue Fund as 
19provided by this Section a total amount equal to 0.5% of the 
20estimated general funds revenues to the Pension Stabilization 
21Fund.
22 (c) For each fiscal year when the General Assembly's 
23appropriations and transfers or diversions as required by law 
 
 
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1from general funds do not exceed 98% of the estimated general 
2funds revenues pursuant to subsection (b) of Section 10, the 
3Comptroller shall transfer from the General Revenue Fund as 
4provided by this Section a total amount equal to 1.0% of the 
5estimated general funds revenues to the Pension Stabilization 
6Fund.
7 (c-5) In addition to any other transfers that may be 
8provided by law, the Comptroller shall transfer from the 
9General Revenue Fund to the Pension Stabilization Fund the 
10amount set forth as follows for each of the specified fiscal 
11years: 
12Fiscal Year Amount 
132030 $175,000,000 
142031 through 2033 $250,000,000 
152034 through 2040 $750,000,000 
16 (d) The Comptroller shall transfer 1/12 of the total 
17amount to be transferred each fiscal year under this Section 
18into the Pension Stabilization Fund on the first day of each 
19month of that fiscal year or as soon thereafter as possible; 
20except that the final transfer of the fiscal year shall be made 
21as soon as practical after the August 31 following the end of 
22the fiscal year.
23 Before the final transfer for a fiscal year is made, the 
24Comptroller shall reconcile the estimated general funds 
25revenues used in calculating the other transfers under this 
26Section for that fiscal year with the actual general funds 
 
 
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1revenues for that fiscal year. The final transfer for the 
2fiscal year shall be adjusted so that the total amount 
3transferred under this Section for that fiscal year is equal 
4to the percentage specified in subsection (b) or (c) of this 
5Section, whichever is applicable, of the actual general funds 
6revenues for that fiscal year. The actual general funds 
7revenues for the fiscal year shall be calculated in a manner 
8consistent with subsection (c) of Section 10 of this Act. 
9(Source: P.A. 94-839, eff. 6-6-06.)

10 Section 10. The Illinois Pension Code is amended by 
11changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as 
12follows:

13 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
14 Sec. 2-124. Contributions by State. 
15 (a) The State shall make contributions to the System by 
16appropriations of amounts which, together with the 
17contributions of participants, interest earned on investments, 
18and other income will meet the cost of maintaining and 
19administering the System on a 100% 90% funded basis by the end 
20of State fiscal year 2048 in accordance with actuarial 
21recommendations.
22 (b) The Board shall determine the amount of State 
23contributions required for each fiscal year on the basis of 
24the actuarial tables and other assumptions adopted by the 
 
 
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1Board and the prescribed rate of interest, using the formula 
2in subsection (c). In making its determination, the Board 
3shall disregard any contributions scheduled to be received in 
4a future State fiscal year under the Budget Stabilization Act. 
5 (c) Beginning in State fiscal year 2049, the minimum 
6contribution to the System to be made by the State for each 
7State fiscal year shall be the contribution amount for the 
8upcoming State fiscal year estimated in the previous year's 
9actuarial valuation required by Section 2-134 plus the amounts 
10required under subsection (c-5), such that the total assets of 
11the System equal 100% of the total actuarial liabilities of 
12the System 20 years after the State fiscal year during which 
13the contribution is made. The required State contribution 
14shall be determined under the entry age normal actuarial cost 
15method. 
16 For State fiscal years 2035 through 2048, the minimum 
17contribution to the System to be made by the State for each 
18State fiscal year shall be the contribution amount for the 
19upcoming State fiscal year estimated in the previous year's 
20actuarial valuation required by Section 2-134 plus the amounts 
21required under subsection (c-5), such that the total assets of 
22the System equal 100% of the total actuarial liabilities of 
23the System 20 years after the State fiscal year during which 
24the contribution is made. In making these determinations, the 
25required State contribution shall be calculated each year as a 
26level percentage of payroll over the years remaining to and 
 
 
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1including fiscal year 2048 and shall be determined under the 
2projected unit credit actuarial cost method. 
3 For State fiscal years 2026 through 2034, the minimum 
4contribution to the System to be made by the State for each 
5State fiscal year shall be an amount determined by the System 
6to be sufficient to bring the total assets of the System up to 
7100% of the total actuarial liabilities of the System by the 
8end of State fiscal year 2048. In making these determinations, 
9the required State contribution shall be calculated each year 
10as a level percentage of payroll over the years remaining to 
11and including fiscal year 2048 and shall be determined under 
12the projected unit credit actuarial cost method. 
13 For State fiscal years 2012 through 2025 2045, the minimum 
14contribution to the System to be made by the State for each 
15fiscal year shall be an amount determined by the System to be 
16sufficient to bring the total assets of the System up to 90% of 
17the total actuarial liabilities of the System by the end of 
18State fiscal year 2045. In making these determinations, the 
19required State contribution shall be calculated each year as a 
20level percentage of payroll over the years remaining to and 
21including fiscal year 2045 and shall be determined under the 
22projected unit credit actuarial cost method.
23  A change in an actuarial or investment assumption that 
24increases or decreases the required State contribution and 
25first applies in State fiscal year 2018 and before State 
26fiscal year 2035 or thereafter shall be implemented in equal 
 
 
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1annual amounts over a 5-year period beginning in the State 
2fiscal year in which the actuarial change first applies to the 
3required State contribution.
4 A change in an actuarial or investment assumption that 
5increases or decreases the required State contribution and 
6first applied to the State contribution in fiscal year 2014, 
72015, 2016, or 2017 shall be implemented:
8  (i) as already applied in State fiscal years before 
9 2018; and
10  (ii) in the portion of the 5-year period beginning in 
11 the State fiscal year in which the actuarial change first 
12 applied that occurs in State fiscal year 2018 or 
13 thereafter, by calculating the change in equal annual 
14 amounts over that 5-year period and then implementing it 
15 at the resulting annual rate in each of the remaining 
16 fiscal years in that 5-year period.
17 For State fiscal years 1996 through 2005, the State 
18contribution to the System, as a percentage of the applicable 
19employee payroll, shall be increased in equal annual 
20increments so that by State fiscal year 2011, the State is 
21contributing at the rate required under this Section.
22 Notwithstanding any other provision of this Article, the 
23total required State contribution for State fiscal year 2006 
24is $4,157,000. 
25 Notwithstanding any other provision of this Article, the 
26total required State contribution for State fiscal year 2007 
 
 
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1is $5,220,300. 
2 For each of State fiscal years 2008 through 2009, the 
3State contribution to the System, as a percentage of the 
4applicable employee payroll, shall be increased in equal 
5annual increments from the required State contribution for 
6State fiscal year 2007, so that by State fiscal year 2011, the 
7State is contributing at the rate otherwise required under 
8this Section. 
9 Notwithstanding any other provision of this Article, the 
10total required State contribution for State fiscal year 2010 
11is $10,454,000 and shall be made from the proceeds of bonds 
12sold in fiscal year 2010 pursuant to Section 7.2 of the General 
13Obligation Bond Act, less (i) the pro rata share of bond sale 
14expenses determined by the System's share of total bond 
15proceeds, (ii) any amounts received from the General Revenue 
16Fund in fiscal year 2010, and (iii) any reduction in bond 
17proceeds due to the issuance of discounted bonds, if 
18applicable. 
19 Notwithstanding any other provision of this Article, the 
20total required State contribution for State fiscal year 2011 
21is the amount recertified by the System on or before April 1, 
222011 pursuant to Section 2-134 and shall be made from the 
23proceeds of bonds sold in fiscal year 2011 pursuant to Section 
247.2 of the General Obligation Bond Act, less (i) the pro rata 
25share of bond sale expenses determined by the System's share 
26of total bond proceeds, (ii) any amounts received from the 
 
 
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1General Revenue Fund in fiscal year 2011, and (iii) any 
2reduction in bond proceeds due to the issuance of discounted 
3bonds, if applicable. 
4 Beginning in State fiscal year 2046, the minimum State 
5contribution for each fiscal year shall be the amount needed 
6to maintain the total assets of the System at 90% of the total 
7actuarial liabilities of the System.
8 Amounts received by the System pursuant to Section 25 of 
9the Budget Stabilization Act or Section 8.12 of the State 
10Finance Act in any fiscal year do not reduce and do not 
11constitute payment of any portion of the minimum State 
12contribution required under this Article in that fiscal year. 
13Such amounts shall not reduce, and shall not be included in the 
14calculation of, the required State contributions under this 
15Article in any future year until the System has reached a 
16funding ratio of at least 90%. A reference in this Article to 
17the "required State contribution" or any substantially similar 
18term does not include or apply to any amounts payable to the 
19System under Section 25 of the Budget Stabilization Act. 
20 Notwithstanding any other provision of this Section, the 
21required State contribution for State fiscal year 2005 and for 
22fiscal year 2008 and each fiscal year thereafter, as 
23calculated under this Section and certified under Section 
242-134, shall not exceed an amount equal to (i) the amount of 
25the required State contribution that would have been 
26calculated under this Section for that fiscal year if the 
 
 
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1System had not received any payments under subsection (d) of 
2Section 7.2 of the General Obligation Bond Act, minus (ii) the 
3portion of the State's total debt service payments for that 
4fiscal year on the bonds issued in fiscal year 2003 for the 
5purposes of that Section 7.2, as determined and certified by 
6the Comptroller, that is the same as the System's portion of 
7the total moneys distributed under subsection (d) of Section 
87.2 of the General Obligation Bond Act. In determining this 
9maximum for State fiscal years 2008 through 2010, however, the 
10amount referred to in item (i) shall be increased, as a 
11percentage of the applicable employee payroll, in equal 
12increments calculated from the sum of the required State 
13contribution for State fiscal year 2007 plus the applicable 
14portion of the State's total debt service payments for fiscal 
15year 2007 on the bonds issued in fiscal year 2003 for the 
16purposes of Section 7.2 of the General Obligation Bond Act, so 
17that, by State fiscal year 2011, the State is contributing at 
18the rate otherwise required under this Section. 
19 (c-5) For State fiscal year 2035 and each State fiscal 
20year thereafter, the contribution to the System to be made by 
21the State shall include an adjustment for differences between 
22the unfunded liability reported in the current actuarial 
23valuation and the unfunded liability reported in the previous 
24year's actuarial valuation required by Section 2-134. The 
25adjustment shall be implemented in equal annual amounts over a 
2620-year period beginning in the State fiscal year in which the 
 
 
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1current actuarial valuation is used to determine the required 
2State contribution under subsection (c). 
3 (d) For purposes of determining the required State 
4contribution to the System, the value of the System's assets 
5shall be equal to the actuarial value of the System's assets, 
6which shall be calculated as follows:
7 As of June 30, 2008, the actuarial value of the System's 
8assets shall be equal to the market value of the assets as of 
9that date. In determining the actuarial value of the System's 
10assets for fiscal years after June 30, 2008, any actuarial 
11gains or losses from investment return incurred in a fiscal 
12year shall be recognized in equal annual amounts over the 
135-year period following that fiscal year. 
14 This subsection is inoperative on and after July 1, 2034. 
15 (e) For purposes of determining the required State 
16contribution to the system for a particular year, the 
17actuarial value of assets shall be assumed to earn a rate of 
18return equal to the system's actuarially assumed rate of 
19return. 
20(Source: P.A. 100-23, eff. 7-6-17.)

21 (40 ILCS 5/14-131)
22 Sec. 14-131. Contributions by State. 
23 (a) The State shall make contributions to the System by 
24appropriations of amounts which, together with other employer 
25contributions from trust, federal, and other funds, employee 
 
 
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1contributions, investment income, and other income, will be 
2sufficient to meet the cost of maintaining and administering 
3the System on a 100% 90% funded basis by the end of State 
4fiscal year 2048 in accordance with actuarial recommendations.
5 For the purposes of this Section and Section 14-135.08, 
6references to State contributions refer only to employer 
7contributions and do not include employee contributions that 
8are picked up or otherwise paid by the State or a department on 
9behalf of the employee.
10 (b) The Board shall determine the total amount of State 
11contributions required for each fiscal year on the basis of 
12the actuarial tables and other assumptions adopted by the 
13Board, using the formula in subsection (e). In making its 
14determination, the Board shall disregard any contributions 
15scheduled to be received in a future State fiscal year under 
16the Budget Stabilization Act. 
17 The Board shall also determine a State contribution rate 
18for each fiscal year, expressed as a percentage of payroll, 
19based on the total required State contribution for that fiscal 
20year (less the amount received by the System from 
21appropriations under Section 8.12 of the State Finance Act and 
22Section 1 of the State Pension Funds Continuing Appropriation 
23Act, if any, for the fiscal year ending on the June 30 
24immediately preceding the applicable November 15 certification 
25deadline), the estimated payroll (including all forms of 
26compensation) for personal services rendered by eligible 
 
 
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1employees, and the recommendations of the actuary.
2 For the purposes of this Section and Section 14.1 of the 
3State Finance Act, the term "eligible employees" includes 
4employees who participate in the System, persons who may elect 
5to participate in the System but have not so elected, persons 
6who are serving a qualifying period that is required for 
7participation, and annuitants employed by a department as 
8described in subdivision (a)(1) or (a)(2) of Section 14-111.
9 (c) Contributions shall be made by the several departments 
10for each pay period by warrants drawn by the State Comptroller 
11against their respective funds or appropriations based upon 
12vouchers stating the amount to be so contributed. These 
13amounts shall be based on the full rate certified by the Board 
14under Section 14-135.08 for that fiscal year. From March 5, 
152004 (the effective date of Public Act 93-665) through the 
16payment of the final payroll from fiscal year 2004 
17appropriations, the several departments shall not make 
18contributions for the remainder of fiscal year 2004 but shall 
19instead make payments as required under subsection (a-1) of 
20Section 14.1 of the State Finance Act. The several departments 
21shall resume those contributions at the commencement of fiscal 
22year 2005.
23 (c-1) Notwithstanding subsection (c) of this Section, for 
24fiscal years 2010, 2012, and each fiscal year thereafter, 
25contributions by the several departments are not required to 
26be made for General Revenue Funds payrolls processed by the 
 
 
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1Comptroller. Payrolls paid by the several departments from all 
2other State funds must continue to be processed pursuant to 
3subsection (c) of this Section.
4 (c-2) For State fiscal years 2010, 2012, and each fiscal 
5year thereafter, on or as soon as possible after the 15th day 
6of each month, the Board shall submit vouchers for payment of 
7State contributions to the System, in a total monthly amount 
8of one-twelfth of the fiscal year General Revenue Fund 
9contribution as certified by the System pursuant to Section 
1014-135.08 of the Illinois Pension Code. 
11 (d) If an employee is paid from trust funds or federal 
12funds, the department or other employer shall pay employer 
13contributions from those funds to the System at the certified 
14rate, unless the terms of the trust or the federal-State 
15agreement preclude the use of the funds for that purpose, in 
16which case the required employer contributions shall be paid 
17by the State. 
18 (e) Beginning in State fiscal year 2049, the minimum 
19contribution to the System to be made by the State for each 
20State fiscal year shall be the contribution amount for the 
21upcoming State fiscal year estimated in the previous year's 
22actuarial valuation required by Section 14-135.08 plus the 
23amounts required under subsection (e-5), such that the total 
24assets of the System equal 100% of the total actuarial 
25liabilities of the System 20 years after the State fiscal year 
26during which the contribution is made. The required State 
 
 
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1contribution shall be determined under the entry age normal 
2actuarial cost method. 
3 For State fiscal years 2035 through 2048, the minimum 
4contribution to the System to be made by the State for each 
5State fiscal year shall be the contribution amount for the 
6upcoming State fiscal year estimated in the previous year's 
7actuarial valuation required by Section 14-135.08 plus the 
8amounts required under subsection (e-5), such that the total 
9assets of the System equal 100% of the total actuarial 
10liabilities of the System 20 years after the State fiscal year 
11during which the contribution is made. In making these 
12determinations, the required State contribution shall be 
13calculated each year as a level percentage of payroll over the 
14years remaining to and including fiscal year 2048 and shall be 
15determined under the projected unit credit actuarial cost 
16method. 
17 For State fiscal years 2026 through 2034, the minimum 
18contribution to the System to be made by the State for each 
19State fiscal year shall be an amount determined by the System 
20to be sufficient to bring the total assets of the System up to 
21100% of the total actuarial liabilities of the System by the 
22end of State fiscal year 2048. In making these determinations, 
23the required State contribution shall be calculated each year 
24as a level percentage of payroll over the years remaining to 
25and including fiscal year 2048 and shall be determined under 
26the projected unit credit actuarial cost method. 
 
 
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1 For State fiscal years 2012 through 2025 2045, the minimum 
2contribution to the System to be made by the State for each 
3fiscal year shall be an amount determined by the System to be 
4sufficient to bring the total assets of the System up to 90% of 
5the total actuarial liabilities of the System by the end of 
6State fiscal year 2045. In making these determinations, the 
7required State contribution shall be calculated each year as a 
8level percentage of payroll over the years remaining to and 
9including fiscal year 2045 and shall be determined under the 
10projected unit credit actuarial cost method.
11  A change in an actuarial or investment assumption that 
12increases or decreases the required State contribution and 
13first applies in State fiscal year 2018 and before State 
14fiscal year 2035 or thereafter shall be implemented in equal 
15annual amounts over a 5-year period beginning in the State 
16fiscal year in which the actuarial change first applies to the 
17required State contribution.
18 A change in an actuarial or investment assumption that 
19increases or decreases the required State contribution and 
20first applied to the State contribution in fiscal year 2014, 
212015, 2016, or 2017 shall be implemented:
22  (i) as already applied in State fiscal years before 
23 2018; and
24  (ii) in the portion of the 5-year period beginning in 
25 the State fiscal year in which the actuarial change first 
26 applied that occurs in State fiscal year 2018 or 
 
 
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1 thereafter, by calculating the change in equal annual 
2 amounts over that 5-year period and then implementing it 
3 at the resulting annual rate in each of the remaining 
4 fiscal years in that 5-year period.
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 
8increments so that by State fiscal year 2011, the State is 
9contributing at the rate required under this Section; except 
10that (i) for State fiscal year 1998, for all purposes of this 
11Code and any other law of this State, the certified percentage 
12of the applicable employee payroll shall be 5.052% for 
13employees earning eligible creditable service under Section 
1414-110 and 6.500% for all other employees, notwithstanding any 
15contrary certification made under Section 14-135.08 before 
16July 7, 1997 (the effective date of Public Act 90-65), and (ii) 
17in the following specified State fiscal years, the State 
18contribution to the System shall not be less than the 
19following indicated percentages of the applicable employee 
20payroll, even if the indicated percentage will produce a State 
21contribution in excess of the amount otherwise required under 
22this subsection and subsection (a): 9.8% in FY 1999; 10.0% in 
23FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003; 
24and 10.8% in FY 2004.
25 Beginning in State fiscal year 2046, the minimum State 
26contribution for each fiscal year shall be the amount needed 
 
 
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1to maintain the total assets of the System at 90% of the total 
2actuarial liabilities of the System.
3 Amounts received by the System pursuant to Section 25 of 
4the Budget Stabilization Act or Section 8.12 of the State 
5Finance Act in any fiscal year do not reduce and do not 
6constitute payment of any portion of the minimum State 
7contribution required under this Article in that fiscal year. 
8Such amounts shall not reduce, and shall not be included in the 
9calculation of, the required State contributions under this 
10Article in any future year until the System has reached a 
11funding ratio of at least 90%. A reference in this Article to 
12the "required State contribution" or any substantially similar 
13term does not include or apply to any amounts payable to the 
14System under Section 25 of the Budget Stabilization Act. 
15 Notwithstanding any other provision of this Section, the 
16required State contribution for State fiscal year 2005 and for 
17fiscal year 2008 and each fiscal year thereafter, as 
18calculated under this Section and certified under Section 
1914-135.08, shall not exceed an amount equal to (i) the amount 
20of the required State contribution that would have been 
21calculated under this Section for that fiscal year if the 
22System had not received any payments under subsection (d) of 
23Section 7.2 of the General Obligation Bond Act, minus (ii) the 
24portion of the State's total debt service payments for that 
25fiscal year on the bonds issued in fiscal year 2003 for the 
26purposes of that Section 7.2, as determined and certified by 
 
 
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1the Comptroller, that is the same as the System's portion of 
2the total moneys distributed under subsection (d) of Section 
37.2 of the General Obligation Bond Act.
4 (e-5) For State fiscal year 2035 and each State fiscal 
5year thereafter, the contribution to the System to be made by 
6the State shall include an adjustment for differences between 
7the unfunded liability reported in the current actuarial 
8valuation and the unfunded liability reported in the previous 
9year's actuarial valuation required by Section 14-135.08. The 
10adjustment shall be implemented in equal annual amounts over a 
1120-year period beginning in the State fiscal year in which the 
12current actuarial valuation is used to determine the required 
13State contribution under subsection (e). 
14 (f) (Blank).
15 (g) 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 This subsection is inoperative on and after July 1, 2034. 
 
 
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1 (h) For purposes of determining the required State 
2contribution to the System for a particular year, the 
3actuarial value of assets shall be assumed to earn a rate of 
4return equal to the System's actuarially assumed rate of 
5return. 
6 (i) (Blank).
7 (j) (Blank).
8 (k) For fiscal year 2012 and each fiscal year thereafter, 
9after the submission of all payments for eligible employees 
10from personal services line items paid from the General 
11Revenue Fund in the fiscal year have been made, the 
12Comptroller shall provide to the System a certification of the 
13sum of all expenditures in the fiscal year for personal 
14services. Upon receipt of the certification, the System shall 
15determine the amount due to the System based on the full rate 
16certified by the Board under Section 14-135.08 for the fiscal 
17year in order to meet the State's obligation under this 
18Section. The System shall compare this amount due to the 
19amount received by the System for the fiscal year. If the 
20amount due is more than the amount received, the difference 
21shall be termed the "Prior Fiscal Year Shortfall" for purposes 
22of this Section, and the Prior Fiscal Year Shortfall shall be 
23satisfied under Section 1.2 of the State Pension Funds 
24Continuing Appropriation Act. If the amount due is less than 
25the amount received, the difference shall be termed the "Prior 
26Fiscal Year Overpayment" for purposes of this Section, and the 
 
 
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1Prior Fiscal Year Overpayment shall be repaid by the System to 
2the General Revenue Fund as soon as practicable after the 
3certification. 
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 
5101-10, eff. 6-5-19.)

6 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
7 Sec. 15-155. Employer contributions. 
8 (a) The State of Illinois shall make contributions by 
9appropriations of amounts which, together with the other 
10employer contributions from trust, federal, and other funds, 
11employee contributions, income from investments, and other 
12income of this System, will be sufficient to meet the cost of 
13maintaining and administering the System on a 100% 90% funded 
14basis by the end of State fiscal year 2048 in accordance with 
15actuarial recommendations.
16 The Board shall determine the amount of State 
17contributions required for each fiscal year on the basis of 
18the actuarial tables and other assumptions adopted by the 
19Board and the recommendations of the actuary, using the 
20formula in subsection (a-1). In making its determination, the 
21Board shall disregard any contributions scheduled to be 
22received in a future State fiscal year under the Budget 
23Stabilization Act. 
24 (a-1) Beginning in State fiscal year 2049, the minimum 
25contribution to the System to be made by the State for each 
 
 
HB5851- 21 -LRB103 40703 RPS 73498 b


1State fiscal year shall be the contribution amount for the 
2upcoming State fiscal year estimated in the previous year's 
3actuarial valuation required by subsection (a-5) of Section 
415-165 plus the amounts required under subsection (a-1.5), 
5such that the total assets of the System equal 100% of the 
6total actuarial liabilities of the System 20 years after the 
7State fiscal year during which the contribution is made. The 
8required State contribution shall be determined under the 
9entry age normal actuarial cost method. 
10 For State fiscal years 2035 through 2048, the minimum 
11contribution to the System to be made by the State for each 
12State fiscal year shall be the contribution amount for the 
13upcoming State fiscal year estimated in the previous year's 
14actuarial valuation required by subsection (a-5) of Section 
1515-165 plus the amounts required under subsection (a-1.5), 
16such that the total assets of the System equal 100% of the 
17total actuarial liabilities of the System 20 years after the 
18State fiscal year during which the contribution is made. In 
19making these determinations, the required State contribution 
20shall be calculated each year as a level percentage of payroll 
21over the years remaining to and including fiscal year 2048 and 
22shall be determined under the projected unit credit actuarial 
23cost method. 
24 For State fiscal years 2026 through 2034, the minimum 
25contribution to the System to be made by the State for each 
26State fiscal year shall be an amount determined by the System 
 
 
HB5851- 22 -LRB103 40703 RPS 73498 b


1to be sufficient to bring the total assets of the System up to 
2100% of the total actuarial liabilities of the System by the 
3end of State fiscal year 2048. In making these determinations, 
4the required State contribution shall be calculated each year 
5as a level percentage of payroll over the years remaining to 
6and including fiscal year 2048 and shall be determined under 
7the projected unit credit actuarial cost method. 
8 For State fiscal years 2012 through 2025 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 90% of 
12the 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 each of State fiscal years 2018, 2019, and 2020, the 
19State shall make an additional contribution to the System 
20equal to 2% of the total payroll of each employee who is deemed 
21to have elected the benefits under Section 1-161 or who has 
22made the election under subsection (c) of Section 1-161. 
23  A change in an actuarial or investment assumption that 
24increases or decreases the required State contribution and 
25first applies in State fiscal year 2018 and before State 
26fiscal year 2035 or thereafter shall be implemented in equal 
 
 
HB5851- 23 -LRB103 40703 RPS 73498 b


1annual amounts over a 5-year period beginning in the State 
2fiscal year in which the actuarial change first applies to the 
3required State contribution.
4 A change in an actuarial or investment assumption that 
5increases or decreases the required State contribution and 
6first applied to the State contribution in fiscal year 2014, 
72015, 2016, or 2017 shall be implemented:
8  (i) as already applied in State fiscal years before 
9 2018; and
10  (ii) in the portion of the 5-year period beginning in 
11 the State fiscal year in which the actuarial change first 
12 applied that occurs in State fiscal year 2018 or 
13 thereafter, by calculating the change in equal annual 
14 amounts over that 5-year period and then implementing it 
15 at the resulting annual rate in each of the remaining 
16 fiscal years in that 5-year period.
17 For State fiscal years 1996 through 2005, the State 
18contribution to the System, as a percentage of the applicable 
19employee payroll, shall be increased in equal annual 
20increments so that by State fiscal year 2011, the State is 
21contributing at the rate required under this Section.
22 Notwithstanding any other provision of this Article, the 
23total required State contribution for State fiscal year 2006 
24is $166,641,900. 
25 Notwithstanding any other provision of this Article, the 
26total required State contribution for State fiscal year 2007 
 
 
HB5851- 24 -LRB103 40703 RPS 73498 b


1is $252,064,100. 
2 For each of State fiscal years 2008 through 2009, the 
3State contribution to the System, as a percentage of the 
4applicable employee payroll, shall be increased in equal 
5annual increments from the required State contribution for 
6State fiscal year 2007, so that by State fiscal year 2011, the 
7State is contributing at the rate otherwise required under 
8this Section. 
9 Notwithstanding any other provision of this Article, the 
10total required State contribution for State fiscal year 2010 
11is $702,514,000 and shall be made from the State Pensions Fund 
12and proceeds of bonds sold in fiscal year 2010 pursuant to 
13Section 7.2 of the General Obligation Bond Act, less (i) the 
14pro rata share of bond sale expenses determined by the 
15System's share of total bond proceeds, (ii) any amounts 
16received from the General Revenue Fund in fiscal year 2010, 
17(iii) any reduction in bond proceeds due to the issuance of 
18discounted bonds, if applicable. 
19 Notwithstanding any other provision of this Article, the 
20total required State contribution for State fiscal year 2011 
21is the amount recertified by the System on or before April 1, 
222011 pursuant to Section 15-165 and shall be made from the 
23State Pensions Fund and proceeds of bonds sold in fiscal year 
242011 pursuant to Section 7.2 of the General Obligation Bond 
25Act, less (i) the pro rata share of bond sale expenses 
26determined by the System's share of total bond proceeds, (ii) 
 
 
HB5851- 25 -LRB103 40703 RPS 73498 b


1any amounts received from the General Revenue Fund in fiscal 
2year 2011, and (iii) any reduction in bond proceeds due to the 
3issuance of discounted bonds, if applicable. 
4 Beginning in State fiscal year 2046, the minimum State 
5contribution for each fiscal year shall be the amount needed 
6to maintain the total assets of the System at 90% of the total 
7actuarial liabilities of the System.
8 Amounts received by the System pursuant to Section 25 of 
9the Budget Stabilization Act or Section 8.12 of the State 
10Finance Act in any fiscal year do not reduce and do not 
11constitute payment of any portion of the minimum State 
12contribution required under this Article in that fiscal year. 
13Such amounts shall not reduce, and shall not be included in the 
14calculation of, the required State contributions under this 
15Article in any future year until the System has reached a 
16funding ratio of at least 90%. A reference in this Article to 
17the "required State contribution" or any substantially similar 
18term does not include or apply to any amounts payable to the 
19System under Section 25 of the Budget Stabilization Act.
20 Notwithstanding any other provision of this Section, the 
21required State contribution for State fiscal year 2005 and for 
22fiscal year 2008 and each fiscal year thereafter, as 
23calculated under this Section and certified under Section 
2415-165, shall not exceed an amount equal to (i) the amount of 
25the required State contribution that would have been 
26calculated under this Section for that fiscal year if the 
 
 
HB5851- 26 -LRB103 40703 RPS 73498 b


1System had not received any payments under subsection (d) of 
2Section 7.2 of the General Obligation Bond Act, minus (ii) the 
3portion of the State's total debt service payments for that 
4fiscal year on the bonds issued in fiscal year 2003 for the 
5purposes of that Section 7.2, as determined and certified by 
6the Comptroller, that is the same as the System's portion of 
7the total moneys distributed under subsection (d) of Section 
87.2 of the General Obligation Bond Act. In determining this 
9maximum for State fiscal years 2008 through 2010, however, the 
10amount referred to in item (i) shall be increased, as a 
11percentage of the applicable employee payroll, in equal 
12increments calculated from the sum of the required State 
13contribution for State fiscal year 2007 plus the applicable 
14portion of the State's total debt service payments for fiscal 
15year 2007 on the bonds issued in fiscal year 2003 for the 
16purposes of Section 7.2 of the General Obligation Bond Act, so 
17that, by State fiscal year 2011, the State is contributing at 
18the rate otherwise required under this Section.
19 (a-1.5) For State fiscal year 2035 and each State fiscal 
20year thereafter, the contribution to the System to be made by 
21the State shall include an adjustment for differences between 
22the unfunded liability reported in the current actuarial 
23valuation and the unfunded liability reported in the previous 
24year's actuarial valuation required by subsection (a-5) of 
25Section 15-165. The adjustment shall be implemented in equal 
26annual amounts over a 20-year period beginning in the State 
 
 
HB5851- 27 -LRB103 40703 RPS 73498 b


1fiscal year in which the current actuarial valuation is used 
2to determine the required State contribution under subsection 
3(a-1). 
4 (a-2) Beginning in fiscal year 2018, each employer under 
5this Article shall pay to the System a required contribution 
6determined as a percentage of projected payroll and sufficient 
7to produce an annual amount equal to:
8  (i) for each of fiscal years 2018, 2019, and 2020, the 
9 defined benefit normal cost of the defined benefit plan, 
10 less the employee contribution, for each employee of that 
11 employer who has elected or who is deemed to have elected 
12 the benefits under Section 1-161 or who has made the 
13 election under subsection (c) of Section 1-161; for fiscal 
14 year 2021 and each fiscal year thereafter, the defined 
15 benefit normal cost of the defined benefit plan, less the 
16 employee contribution, plus 2%, for each employee of that 
17 employer who has elected or who is deemed to have elected 
18 the benefits under Section 1-161 or who has made the 
19 election under subsection (c) of Section 1-161; plus
20  (ii) the amount required for that fiscal year to 
21 amortize any unfunded actuarial accrued liability 
22 associated with the present value of liabilities 
23 attributable to the employer's account under Section 
24 15-155.2, determined as a level percentage of payroll over 
25 a 30-year rolling amortization period.
26 In determining contributions required under item (i) of 
 
 
HB5851- 28 -LRB103 40703 RPS 73498 b


1this subsection, the System shall determine an aggregate rate 
2for all employers, expressed as a percentage of projected 
3payroll. 
4 In determining the contributions required under item (ii) 
5of this subsection, the amount shall be computed by the System 
6on the basis of the actuarial assumptions and tables used in 
7the most recent actuarial valuation of the System that is 
8available at the time of the computation. 
9 The contributions required under this subsection (a-2) 
10shall be paid by an employer concurrently with that employer's 
11payroll payment period. The State, as the actual employer of 
12an employee, shall make the required contributions under this 
13subsection. 
14 As used in this subsection, "academic year" means the 
1512-month period beginning September 1. 
16 (b) If an employee is paid from trust or federal funds, the 
17employer shall pay to the Board contributions from those funds 
18which are sufficient to cover the accruing normal costs on 
19behalf of the employee. However, universities having employees 
20who are compensated out of local auxiliary funds, income 
21funds, or service enterprise funds are not required to pay 
22such contributions on behalf of those employees. The local 
23auxiliary funds, income funds, and service enterprise funds of 
24universities shall not be considered trust funds for the 
25purpose of this Article, but funds of alumni associations, 
26foundations, and athletic associations which are affiliated 
 
 
HB5851- 29 -LRB103 40703 RPS 73498 b


1with the universities included as employers under this Article 
2and other employers which do not receive State appropriations 
3are considered to be trust funds for the purpose of this 
4Article.
5 (b-1) The City of Urbana and the City of Champaign shall 
6each make employer contributions to this System for their 
7respective firefighter employees who participate in this 
8System pursuant to subsection (h) of Section 15-107. The rate 
9of contributions to be made by those municipalities shall be 
10determined annually by the Board on the basis of the actuarial 
11assumptions adopted by the Board and the recommendations of 
12the actuary, and shall be expressed as a percentage of salary 
13for each such employee. The Board shall certify the rate to the 
14affected municipalities as soon as may be practical. The 
15employer contributions required under this subsection shall be 
16remitted by the municipality to the System at the same time and 
17in the same manner as employee contributions.
18 (c) Through State fiscal year 1995: The total employer 
19contribution shall be apportioned among the various funds of 
20the State and other employers, whether trust, federal, or 
21other funds, in accordance with actuarial procedures approved 
22by the Board. State of Illinois contributions for employers 
23receiving State appropriations for personal services shall be 
24payable from appropriations made to the employers or to the 
25System. The contributions for Class I community colleges 
26covering earnings other than those paid from trust and federal 
 
 
HB5851- 30 -LRB103 40703 RPS 73498 b


1funds, shall be payable solely from appropriations to the 
2Illinois Community College Board or the System for employer 
3contributions.
4 (d) Beginning in State fiscal year 1996, the required 
5State contributions to the System shall be appropriated 
6directly to the System and shall be payable through vouchers 
7issued in accordance with subsection (c) of Section 15-165, 
8except as provided in subsection (g).
9 (e) The State Comptroller shall draw warrants payable to 
10the System upon proper certification by the System or by the 
11employer in accordance with the appropriation laws and this 
12Code.
13 (f) Normal costs under this Section means liability for 
14pensions and other benefits which accrues to the System 
15because of the credits earned for service rendered by the 
16participants during the fiscal year and expenses of 
17administering the System, but shall not include the principal 
18of or any redemption premium or interest on any bonds issued by 
19the Board or any expenses incurred or deposits required in 
20connection therewith.
21 (g) If the amount of a participant's earnings for any 
22academic year used to determine the final rate of earnings, 
23determined on a full-time equivalent basis, exceeds the amount 
24of his or her earnings with the same employer for the previous 
25academic year, determined on a full-time equivalent basis, by 
26more than 6%, the participant's employer shall pay to the 
 
 
HB5851- 31 -LRB103 40703 RPS 73498 b


1System, in addition to all other payments required under this 
2Section and in accordance with guidelines established by the 
3System, the present value of the increase in benefits 
4resulting from the portion of the increase in earnings that is 
5in excess of 6%. This present value shall be computed by the 
6System on the basis of the actuarial assumptions and tables 
7used in the most recent actuarial valuation of the System that 
8is available at the time of the computation. The System may 
9require the employer to provide any pertinent information or 
10documentation.
11 Whenever it determines that a payment is or may be 
12required under this subsection (g), the System shall calculate 
13the amount of the payment and bill the employer for that 
14amount. The bill shall specify the calculations used to 
15determine the amount due. If the employer disputes the amount 
16of the bill, it may, within 30 days after receipt of the bill, 
17apply to the System in writing for a recalculation. The 
18application must specify in detail the grounds of the dispute 
19and, if the employer asserts that the calculation is subject 
20to subsection (h), (h-5), or (i) of this Section, must include 
21an affidavit setting forth and attesting to all facts within 
22the employer's knowledge that are pertinent to the 
23applicability of that subsection. Upon receiving a timely 
24application for recalculation, the System shall review the 
25application and, if appropriate, recalculate the amount due. 
26 The employer contributions required under this subsection 
 
 
HB5851- 32 -LRB103 40703 RPS 73498 b


1(g) may be paid in the form of a lump sum within 90 days after 
2receipt of the bill. If the employer contributions are not 
3paid within 90 days after receipt of the bill, then interest 
4will be charged at a rate equal to the System's annual 
5actuarially assumed rate of return on investment compounded 
6annually from the 91st day after receipt of the bill. Payments 
7must be concluded within 3 years after the employer's receipt 
8of the bill.
9 When assessing payment for any amount due under this 
10subsection (g), the System shall include earnings, to the 
11extent not established by a participant under Section 
1215-113.11 or 15-113.12, that would have been paid to the 
13participant had the participant not taken (i) periods of 
14voluntary or involuntary furlough occurring on or after July 
151, 2015 and on or before June 30, 2017 or (ii) periods of 
16voluntary pay reduction in lieu of furlough occurring on or 
17after July 1, 2015 and on or before June 30, 2017. Determining 
18earnings that would have been paid to a participant had the 
19participant not taken periods of voluntary or involuntary 
20furlough or periods of voluntary pay reduction shall be the 
21responsibility of the employer, and shall be reported in a 
22manner prescribed by the System.
23 This subsection (g) does not apply to (1) Tier 2 hybrid 
24plan members and (2) Tier 2 defined benefit members who first 
25participate under this Article on or after the implementation 
26date of the Optional Hybrid Plan. 
 
 
HB5851- 33 -LRB103 40703 RPS 73498 b


1 (g-1) (Blank).
2 (h) This subsection (h) applies only to payments made or 
3salary increases given on or after June 1, 2005 but before July 
41, 2011. The changes made by Public Act 94-1057 shall not 
5require the System to refund any payments received before July 
631, 2006 (the effective date of Public Act 94-1057).
7 When assessing payment for any amount due under subsection 
8(g), the System shall exclude earnings increases paid to 
9participants under contracts or collective bargaining 
10agreements entered into, amended, or renewed before June 1, 
112005. 
12 When assessing payment for any amount due under subsection 
13(g), the System shall exclude earnings increases paid to a 
14participant at a time when the participant is 10 or more years 
15from retirement eligibility under Section 15-135. 
16 When assessing payment for any amount due under subsection 
17(g), the System shall exclude earnings increases resulting 
18from overload work, including a contract for summer teaching, 
19or overtime when the employer has certified to the System, and 
20the System has approved the certification, that: (i) in the 
21case of overloads (A) the overload work is for the sole purpose 
22of academic instruction in excess of the standard number of 
23instruction hours for a full-time employee occurring during 
24the academic year that the overload is paid and (B) the 
25earnings increases are equal to or less than the rate of pay 
26for academic instruction computed using the participant's 
 
 
HB5851- 34 -LRB103 40703 RPS 73498 b


1current salary rate and work schedule; and (ii) in the case of 
2overtime, the overtime was necessary for the educational 
3mission.
4 When assessing payment for any amount due under subsection 
5(g), the System shall exclude any earnings increase resulting 
6from (i) a promotion for which the employee moves from one 
7classification to a higher classification under the State 
8Universities Civil Service System, (ii) a promotion in 
9academic rank for a tenured or tenure-track faculty position, 
10or (iii) a promotion that the Illinois Community College Board 
11has recommended in accordance with subsection (k) of this 
12Section. These earnings increases shall be excluded only if 
13the promotion is to a position that has existed and been filled 
14by a member for no less than one complete academic year and the 
15earnings increase as a result of the promotion is an increase 
16that results in an amount no greater than the average salary 
17paid for other similar positions.
18 (h-5) When assessing payment for any amount due under 
19subsection (g), the System shall exclude any earnings increase 
20paid in an academic year beginning on or after July 1, 2020 
21resulting from overload work performed in an academic year 
22subsequent to an academic year in which the employer was 
23unable to offer or allow to be conducted overload work due to 
24an emergency declaration limiting such activities. 
25 (i) When assessing payment for any amount due under 
26subsection (g), the System shall exclude any salary increase 
 
 
HB5851- 35 -LRB103 40703 RPS 73498 b


1described in subsection (h) of this Section given on or after 
2July 1, 2011 but before July 1, 2014 under a contract or 
3collective bargaining agreement entered into, amended, or 
4renewed on or after June 1, 2005 but before July 1, 2011. 
5Except as provided in subsection (h-5), any payments made or 
6salary increases given after June 30, 2014 shall be used in 
7assessing payment for any amount due under subsection (g) of 
8this Section. 
9 (j) The System shall prepare a report and file copies of 
10the report with the Governor and the General Assembly by 
11January 1, 2007 that contains all of the following 
12information:
13  (1) The number of recalculations required by the 
14 changes made to this Section by Public Act 94-1057 for 
15 each employer.
16  (2) The dollar amount by which each employer's 
17 contribution to the System was changed due to 
18 recalculations required by Public Act 94-1057.
19  (3) The total amount the System received from each 
20 employer as a result of the changes made to this Section by 
21 Public Act 94-4.
22  (4) The increase in the required State contribution 
23 resulting from the changes made to this Section by Public 
24 Act 94-1057.
25 (j-5) For State fiscal years beginning on or after July 1, 
262017, if the amount of a participant's earnings for any State 
 
 
HB5851- 36 -LRB103 40703 RPS 73498 b


1fiscal year exceeds the amount of the salary set by law for the 
2Governor that is in effect on July 1 of that fiscal year, the 
3participant's employer shall pay to the System, in addition to 
4all other payments required under this Section and in 
5accordance with guidelines established by the System, an 
6amount determined by the System to be equal to the employer 
7normal cost, as established by the System and expressed as a 
8total percentage of payroll, multiplied by the amount of 
9earnings in excess of the amount of the salary set by law for 
10the Governor. This amount shall be computed by the System on 
11the basis of the actuarial assumptions and tables used in the 
12most recent actuarial valuation of the System that is 
13available at the time of the computation. The System may 
14require the employer to provide any pertinent information or 
15documentation.
16 Whenever it determines that a payment is or may be 
17required under this subsection, the System shall calculate the 
18amount of the payment and bill the employer for that amount. 
19The bill shall specify the calculation used to determine the 
20amount due. If the employer disputes the amount of the bill, it 
21may, within 30 days after receipt of the bill, apply to the 
22System in writing for a recalculation. The application must 
23specify in detail the grounds of the dispute. Upon receiving a 
24timely application for recalculation, the System shall review 
25the application and, if appropriate, recalculate the amount 
26due. 
 
 
HB5851- 37 -LRB103 40703 RPS 73498 b


1 The employer contributions required under this subsection 
2may be paid in the form of a lump sum within 90 days after 
3issuance of the bill. If the employer contributions are not 
4paid within 90 days after issuance of the bill, then interest 
5will be charged at a rate equal to the System's annual 
6actuarially assumed rate of return on investment compounded 
7annually from the 91st day after issuance of the bill. All 
8payments must be received within 3 years after issuance of the 
9bill. If the employer fails to make complete payment, 
10including applicable interest, within 3 years, then the System 
11may, after giving notice to the employer, certify the 
12delinquent amount to the State Comptroller, and the 
13Comptroller shall thereupon deduct the certified delinquent 
14amount from State funds payable to the employer and pay them 
15instead to the System. 
16 This subsection (j-5) does not apply to a participant's 
17earnings to the extent an employer pays the employer normal 
18cost of such earnings. 
19 The changes made to this subsection (j-5) by Public Act 
20100-624 are intended to apply retroactively to July 6, 2017 
21(the effective date of Public Act 100-23). 
22 (k) The Illinois Community College Board shall adopt rules 
23for recommending lists of promotional positions submitted to 
24the Board by community colleges and for reviewing the 
25promotional lists on an annual basis. When recommending 
26promotional lists, the Board shall consider the similarity of 
 
 
HB5851- 38 -LRB103 40703 RPS 73498 b


1the positions submitted to those positions recognized for 
2State universities by the State Universities Civil Service 
3System. The Illinois Community College Board shall file a copy 
4of its findings with the System. The System shall consider the 
5findings of the Illinois Community College Board when making 
6determinations under this Section. The System shall not 
7exclude any earnings increases resulting from a promotion when 
8the promotion was not submitted by a community college. 
9Nothing in this subsection (k) shall require any community 
10college to submit any information to the Community College 
11Board. 
12 (l) For purposes of determining the required State 
13contribution to the System, the value of the System's assets 
14shall be equal to the actuarial value of the System's assets, 
15which shall be calculated as follows:
16 As of June 30, 2008, the actuarial value of the System's 
17assets shall be equal to the market value of the assets as of 
18that date. In determining the actuarial value of the System's 
19assets for fiscal years after June 30, 2008, any actuarial 
20gains or losses from investment return incurred in a fiscal 
21year shall be recognized in equal annual amounts over the 
225-year period following that fiscal year. 
23 This subsection is inoperative on and after July 1, 2034. 
24 (m) For purposes of determining the required State 
25contribution to the system for a particular year, the 
26actuarial value of assets shall be assumed to earn a rate of 
 
 
HB5851- 39 -LRB103 40703 RPS 73498 b


1return equal to the system's actuarially assumed rate of 
2return. 
3(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
4102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff. 
55-13-22.)

6 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
7 Sec. 16-158. Contributions by State and other employing 
8units. 
9 (a) The State shall make contributions to the System by 
10means of appropriations from the Common School Fund and other 
11State funds of amounts which, together with other employer 
12contributions, employee contributions, investment income, and 
13other income, will be sufficient to meet the cost of 
14maintaining and administering the System on a 100% 90% funded 
15basis by the end of State fiscal year 2048 in accordance with 
16actuarial recommendations.
17 The Board shall determine the amount of State 
18contributions required for each fiscal year on the basis of 
19the actuarial tables and other assumptions adopted by the 
20Board and the recommendations of the actuary, using the 
21formula in subsection (b-3). In making its determination, the 
22Board shall disregard any contributions scheduled to be 
23received in a future State fiscal year under the Budget 
24Stabilization Act. 
25 (a-1) Annually, on or before November 15 until November 
 
 
HB5851- 40 -LRB103 40703 RPS 73498 b


115, 2011, the Board shall certify to the Governor the amount of 
2the required State contribution for the coming fiscal year. 
3The certification under this subsection (a-1) shall include a 
4copy of the actuarial recommendations upon which it is based 
5and shall specifically identify the System's projected State 
6normal cost for that fiscal year.
7 On or before May 1, 2004, the Board shall recalculate and 
8recertify to the Governor the amount of the required State 
9contribution to the System for State fiscal year 2005, taking 
10into account the amounts appropriated to and received by the 
11System under subsection (d) of Section 7.2 of the General 
12Obligation Bond Act.
13 On or before July 1, 2005, the Board shall recalculate and 
14recertify to the Governor the amount of the required State 
15contribution to the System for State fiscal year 2006, taking 
16into account the changes in required State contributions made 
17by Public Act 94-4. 
18 On or before April 1, 2011, the Board shall recalculate 
19and recertify to the Governor the amount of the required State 
20contribution to the System for State fiscal year 2011, 
21applying the changes made by Public Act 96-889 to the System's 
22assets and liabilities as of June 30, 2009 as though Public Act 
2396-889 was approved on that date. 
24 (a-5) On or before November 1 of each year, beginning 
25November 1, 2012, the Board shall submit to the State Actuary, 
26the Governor, and the General Assembly a proposed 
 
 
HB5851- 41 -LRB103 40703 RPS 73498 b


1certification of the amount of the required State contribution 
2to the System for the next fiscal year, along with all of the 
3actuarial assumptions, calculations, and data upon which that 
4proposed certification is based. On or before January 1 of 
5each year, beginning January 1, 2013, the State Actuary shall 
6issue a preliminary report concerning the proposed 
7certification and identifying, if necessary, recommended 
8changes in actuarial assumptions that the Board must consider 
9before finalizing its certification of the required State 
10contributions. On or before January 15, 2013 and each January 
1115 thereafter, the Board shall certify to the Governor and the 
12General Assembly the amount of the required State contribution 
13for the next fiscal year. The Board's certification must note 
14any deviations from the State Actuary's recommended changes, 
15the reason or reasons for not following the State Actuary's 
16recommended changes, and the fiscal impact of not following 
17the State Actuary's recommended changes on the required State 
18contribution. 
19 (a-10) By November 1, 2017, the Board shall recalculate 
20and recertify to the State Actuary, the Governor, and the 
21General Assembly the amount of the State contribution to the 
22System for State fiscal year 2018, taking into account the 
23changes in required State contributions made by Public Act 
24100-23. The State Actuary shall review the assumptions and 
25valuations underlying the Board's revised certification and 
26issue a preliminary report concerning the proposed 
 
 
HB5851- 42 -LRB103 40703 RPS 73498 b


1recertification and identifying, if necessary, recommended 
2changes in actuarial assumptions that the Board must consider 
3before finalizing its certification of the required State 
4contributions. The Board's final certification must note any 
5deviations from the State Actuary's recommended changes, the 
6reason or reasons for not following the State Actuary's 
7recommended changes, and the fiscal impact of not following 
8the State Actuary's recommended changes on the required State 
9contribution. 
10 (a-15) On or after June 15, 2019, but no later than June 
1130, 2019, the Board shall recalculate and recertify to the 
12Governor and the General Assembly the amount of the State 
13contribution to the System for State fiscal year 2019, taking 
14into account the changes in required State contributions made 
15by Public Act 100-587. The recalculation shall be made using 
16assumptions adopted by the Board for the original fiscal year 
172019 certification. The monthly voucher for the 12th month of 
18fiscal year 2019 shall be paid by the Comptroller after the 
19recertification required pursuant to this subsection is 
20submitted to the Governor, Comptroller, and General Assembly. 
21The recertification submitted to the General Assembly shall be 
22filed with the Clerk of the House of Representatives and the 
23Secretary of the Senate in electronic form only, in the manner 
24that the Clerk and the Secretary shall direct. 
25 (b) Through State fiscal year 1995, the State 
26contributions shall be paid to the System in accordance with 
 
 
HB5851- 43 -LRB103 40703 RPS 73498 b


1Section 18-7 of the School Code.
2 (b-1) Beginning in State fiscal year 1996, on the 15th day 
3of each month, or as soon thereafter as may be practicable, the 
4Board shall submit vouchers for payment of State contributions 
5to the System, in a total monthly amount of one-twelfth of the 
6required annual State contribution certified under subsection 
7(a-1). From March 5, 2004 (the effective date of Public Act 
893-665) through June 30, 2004, the Board shall not submit 
9vouchers for the remainder of fiscal year 2004 in excess of the 
10fiscal year 2004 certified contribution amount determined 
11under this Section after taking into consideration the 
12transfer to the System under subsection (a) of Section 6z-61 
13of the State Finance Act. These vouchers shall be paid by the 
14State Comptroller and Treasurer by warrants drawn on the funds 
15appropriated to the System for that fiscal year.
16 If in any month the amount remaining unexpended from all 
17other appropriations to the System for the applicable fiscal 
18year (including the appropriations to the System under Section 
198.12 of the State Finance Act and Section 1 of the State 
20Pension Funds Continuing Appropriation Act) is less than the 
21amount lawfully vouchered under this subsection, the 
22difference shall be paid from the Common School Fund under the 
23continuing appropriation authority provided in Section 1.1 of 
24the State Pension Funds Continuing Appropriation Act.
25 (b-2) Allocations from the Common School Fund apportioned 
26to school districts not coming under this System shall not be 
 
 
HB5851- 44 -LRB103 40703 RPS 73498 b


1diminished or affected by the provisions of this Article.
2 (b-3) Beginning in State fiscal year 2049, the minimum 
3contribution to the System to be made by the State for each 
4State fiscal year shall be the contribution amount for the 
5upcoming State fiscal year estimated in the previous year's 
6actuarial valuation required by subsection (a-5) plus the 
7amounts required under subsection (b-3.5), such that the total 
8assets of the System equal 100% of the total actuarial 
9liabilities of the System 20 years after the State fiscal year 
10during which the contribution is made. The required State 
11contribution shall be determined under the entry age normal 
12actuarial cost method. 
13 For State fiscal years 2035 through 2048, the minimum 
14contribution to the System to be made by the State for each 
15State fiscal year shall be the contribution amount for the 
16upcoming State fiscal year estimated in the previous year's 
17actuarial valuation required by subsection (a-5) plus the 
18amounts required under subsection (b-3.5), such that the total 
19assets of the System equal 100% of the total actuarial 
20liabilities of the System 20 years after the State fiscal year 
21during which the contribution is made. In making these 
22determinations, the required State contribution shall be 
23calculated each year as a level percentage of payroll over the 
24years remaining to and including fiscal year 2048 and shall be 
25determined under the projected unit credit actuarial cost 
26method. 
 
 
HB5851- 45 -LRB103 40703 RPS 73498 b


1 For State fiscal years 2026 through 2034, the minimum 
2contribution to the System to be made by the State for each 
3State fiscal year shall be an amount determined by the System 
4to be sufficient to bring the total assets of the System up to 
5100% of the total actuarial liabilities of the System by the 
6end of State fiscal year 2048. In making these determinations, 
7the required State contribution shall be calculated each year 
8as a level percentage of payroll over the years remaining to 
9and including fiscal year 2048 and shall be determined under 
10the projected unit credit actuarial cost method. 
11 For State fiscal years 2012 through 2025 2045, the minimum 
12contribution to the System to be made by the State for each 
13fiscal year shall be an amount determined by the System to be 
14sufficient to bring the total assets of the System up to 90% of 
15the total actuarial liabilities of the System by the end of 
16State fiscal year 2045. In making these determinations, the 
17required State contribution shall be calculated each year as a 
18level percentage of payroll over the years remaining to and 
19including fiscal year 2045 and shall be determined under the 
20projected unit credit actuarial cost method.
21 For each of State fiscal years 2018, 2019, and 2020, the 
22State shall make an additional contribution to the System 
23equal to 2% of the total payroll of each employee who is deemed 
24to have elected the benefits under Section 1-161 or who has 
25made the election under subsection (c) of Section 1-161. 
26  A change in an actuarial or investment assumption that 
 
 
HB5851- 46 -LRB103 40703 RPS 73498 b


1increases or decreases the required State contribution and 
2first applies in State fiscal year 2018 and before State 
3fiscal year 2035 or thereafter shall be implemented in equal 
4annual amounts over a 5-year period beginning in the State 
5fiscal year in which the actuarial change first applies to the 
6required State contribution.
7 A change in an actuarial or investment assumption that 
8increases or decreases the required State contribution and 
9first applied to the State contribution in fiscal year 2014, 
102015, 2016, or 2017 shall be implemented:
11  (i) as already applied in State fiscal years before 
12 2018; and
13  (ii) in the portion of the 5-year period beginning in 
14 the State fiscal year in which the actuarial change first 
15 applied that occurs in State fiscal year 2018 or 
16 thereafter, by calculating the change in equal annual 
17 amounts over that 5-year period and then implementing it 
18 at the resulting annual rate in each of the remaining 
19 fiscal years in that 5-year period.
20 For State fiscal years 1996 through 2005, the State 
21contribution to the System, as a percentage of the applicable 
22employee payroll, shall be increased in equal annual 
23increments so that by State fiscal year 2011, the State is 
24contributing at the rate required under this Section; except 
25that in the following specified State fiscal years, the State 
26contribution to the System shall not be less than the 
 
 
HB5851- 47 -LRB103 40703 RPS 73498 b


1following indicated percentages of the applicable employee 
2payroll, even if the indicated percentage will produce a State 
3contribution in excess of the amount otherwise required under 
4this subsection and subsection (a), and notwithstanding any 
5contrary certification made under subsection (a-1) before May 
627, 1998 (the effective date of Public Act 90-582): 10.02% in 
7FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY 
82002; 12.86% in FY 2003; and 13.56% in FY 2004.
9 Notwithstanding any other provision of this Article, the 
10total required State contribution for State fiscal year 2006 
11is $534,627,700. 
12 Notwithstanding any other provision of this Article, the 
13total required State contribution for State fiscal year 2007 
14is $738,014,500. 
15 For each of State fiscal years 2008 through 2009, the 
16State contribution to the System, as a percentage of the 
17applicable employee payroll, shall be increased in equal 
18annual increments from the required State contribution for 
19State fiscal year 2007, so that by State fiscal year 2011, the 
20State is contributing at the rate otherwise required under 
21this Section. 
22 Notwithstanding any other provision of this Article, the 
23total required State contribution for State fiscal year 2010 
24is $2,089,268,000 and shall be made from the proceeds of bonds 
25sold in fiscal year 2010 pursuant to Section 7.2 of the General 
26Obligation Bond Act, less (i) the pro rata share of bond sale 
 
 
HB5851- 48 -LRB103 40703 RPS 73498 b


1expenses determined by the System's share of total bond 
2proceeds, (ii) any amounts received from the Common School 
3Fund in fiscal year 2010, and (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 
8is the amount recertified by the System on or before April 1, 
92011 pursuant to subsection (a-1) of this Section and shall be 
10made from the 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 Common School Fund in fiscal year 2011, and 
15(iii) any reduction in bond proceeds due to the issuance of 
16discounted bonds, if applicable. This amount shall include, in 
17addition to the amount certified by the System, an amount 
18necessary to meet employer contributions required by the State 
19as an employer under paragraph (e) of this Section, which may 
20also be used by the System for contributions required by 
21paragraph (a) of Section 16-127. 
22 Beginning in State fiscal year 2046, the minimum State 
23contribution for each fiscal year shall be the amount needed 
24to maintain the total assets of the System at 90% of the total 
25actuarial liabilities of the System.
26 Amounts received by the System pursuant to Section 25 of 
 
 
HB5851- 49 -LRB103 40703 RPS 73498 b


1the Budget Stabilization Act or Section 8.12 of the State 
2Finance Act in any fiscal year do not reduce and do not 
3constitute payment of any portion of the minimum State 
4contribution required under this Article in that fiscal year. 
5Such amounts shall not reduce, and shall not be included in the 
6calculation of, the required State contributions under this 
7Article in any future year until the System has reached a 
8funding ratio of at least 90%. A reference in this Article to 
9the "required State contribution" or any substantially similar 
10term does not include or apply to any amounts payable to the 
11System under Section 25 of the Budget Stabilization Act.
12 Notwithstanding any other provision of this Section, the 
13required State contribution for State fiscal year 2005 and for 
14fiscal year 2008 and each fiscal year thereafter, as 
15calculated under this Section and certified under subsection 
16(a-1), shall not exceed an amount equal to (i) the amount of 
17the required State contribution that would have been 
18calculated under this Section for that fiscal year if the 
19System had not received any payments under subsection (d) of 
20Section 7.2 of the General Obligation Bond Act, minus (ii) the 
21portion of the State's total debt service payments for that 
22fiscal year on the bonds issued in fiscal year 2003 for the 
23purposes of that Section 7.2, as determined and certified by 
24the Comptroller, that is the same as the System's portion of 
25the total moneys distributed under subsection (d) of Section 
267.2 of the General Obligation Bond Act. In determining this 
 
 
HB5851- 50 -LRB103 40703 RPS 73498 b


1maximum for State fiscal years 2008 through 2010, however, the 
2amount referred to in item (i) shall be increased, as a 
3percentage of the applicable employee payroll, in equal 
4increments calculated from the sum of the required State 
5contribution for State fiscal year 2007 plus the applicable 
6portion of the State's total debt service payments for fiscal 
7year 2007 on the bonds issued in fiscal year 2003 for the 
8purposes of Section 7.2 of the General Obligation Bond Act, so 
9that, by State fiscal year 2011, the State is contributing at 
10the rate otherwise required under this Section.
11 (b-3.5) For State fiscal year 2035 and each State fiscal 
12year thereafter, the contribution to the System to be made by 
13the State shall include an adjustment for differences between 
14the unfunded liability reported in the current actuarial 
15valuation and the unfunded liability reported in the previous 
16year's actuarial valuation required by subsection (a-5). The 
17adjustment shall be implemented in equal annual amounts over a 
1820-year period beginning in the State fiscal year in which the 
19current actuarial valuation is used to determine the required 
20State contribution under subsection (b-3). 
21 (b-4) Beginning in fiscal year 2018, each employer under 
22this Article shall pay to the System a required contribution 
23determined as a percentage of projected payroll and sufficient 
24to produce an annual amount equal to:
25  (i) for each of fiscal years 2018, 2019, and 2020, the 
26 defined benefit normal cost of the defined benefit plan, 
 
 
HB5851- 51 -LRB103 40703 RPS 73498 b


1 less the employee contribution, for each employee of that 
2 employer who has elected or who is deemed to have elected 
3 the benefits under Section 1-161 or who has made the 
4 election under subsection (b) of Section 1-161; for fiscal 
5 year 2021 and each fiscal year thereafter, the defined 
6 benefit normal cost of the defined benefit plan, less the 
7 employee contribution, plus 2%, for each employee of that 
8 employer who has elected or who is deemed to have elected 
9 the benefits under Section 1-161 or who has made the 
10 election under subsection (b) of Section 1-161; plus
11  (ii) the amount required for that fiscal year to 
12 amortize any unfunded actuarial accrued liability 
13 associated with the present value of liabilities 
14 attributable to the employer's account under Section 
15 16-158.3, determined as a level percentage of payroll over 
16 a 30-year rolling amortization period.
17 In determining contributions required under item (i) of 
18this subsection, the System shall determine an aggregate rate 
19for all employers, expressed as a percentage of projected 
20payroll. 
21 In determining the contributions required under item (ii) 
22of this subsection, the amount shall be computed by the System 
23on the basis of the actuarial assumptions and tables used in 
24the most recent actuarial valuation of the System that is 
25available at the time of the computation. 
26 The contributions required under this subsection (b-4) 
 
 
HB5851- 52 -LRB103 40703 RPS 73498 b


1shall be paid by an employer concurrently with that employer's 
2payroll payment period. The State, as the actual employer of 
3an employee, shall make the required contributions under this 
4subsection. 
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 
8all expenses in connection with the administration and 
9operation thereof, 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 
14based upon that service, which, beginning July 1, 2017, shall 
15be at a rate, expressed as a percentage of salary, equal to the 
16total employer's normal cost, expressed as a percentage of 
17payroll, as determined by the System. Employer contributions, 
18based on salary paid to members from federal funds, may be 
19forwarded by the distributing agency of the State of Illinois 
20to the System prior to allocation, in an amount determined in 
21accordance with guidelines established by such agency and the 
22System. Any contribution for fiscal year 2015 collected as a 
23result of the change made by Public Act 98-674 shall be 
24considered a State contribution under subsection (b-3) of this 
25Section. 
26 (d) Effective July 1, 1986, any employer of a teacher as 
 
 
HB5851- 53 -LRB103 40703 RPS 73498 b


1defined in paragraph (8) of Section 16-106 shall pay the 
2employer's normal cost of benefits based upon the teacher's 
3service, in addition to employee contributions, as determined 
4by the System. Such employer contributions shall be forwarded 
5monthly in accordance with guidelines established by the 
6System.
7 However, with respect to benefits granted under Section 
816-133.4 or 16-133.5 to a teacher as defined in paragraph (8) 
9of Section 16-106, the employer's contribution shall be 12% 
10(rather than 20%) of the member's highest annual salary rate 
11for each year of creditable service granted, and the employer 
12shall also pay the required employee contribution on behalf of 
13the teacher. For the purposes of Sections 16-133.4 and 
1416-133.5, a teacher as defined in paragraph (8) of Section 
1516-106 who is serving in that capacity while on leave of 
16absence from another employer under this Article shall not be 
17considered an employee of the employer from which the teacher 
18is on leave.
19 (e) Beginning July 1, 1998, every employer of a teacher 
20shall pay to the System an employer contribution computed as 
21follows:
22  (1) Beginning July 1, 1998 through June 30, 1999, the 
23 employer contribution shall be equal to 0.3% of each 
24 teacher's salary.
25  (2) Beginning July 1, 1999 and thereafter, the 
26 employer contribution shall be equal to 0.58% of each 
 
 
HB5851- 54 -LRB103 40703 RPS 73498 b


1 teacher's salary.
2The school district or other employing unit may pay these 
3employer contributions out of any source of funding available 
4for that purpose and shall forward the contributions to the 
5System on the schedule established for the payment of member 
6contributions.
7 These employer contributions are intended to offset a 
8portion of the cost to the System of the increases in 
9retirement benefits resulting from Public Act 90-582.
10 Each employer of teachers is entitled to a credit against 
11the contributions required under this subsection (e) with 
12respect to salaries paid to teachers for the period January 1, 
132002 through June 30, 2003, equal to the amount paid by that 
14employer under subsection (a-5) of Section 6.6 of the State 
15Employees Group Insurance Act of 1971 with respect to salaries 
16paid to teachers for that period.
17 The additional 1% employee contribution required under 
18Section 16-152 by Public Act 90-582 is the responsibility of 
19the teacher and not the teacher's employer, unless the 
20employer agrees, through collective bargaining or otherwise, 
21to make the contribution on behalf of the teacher.
22 If an employer is required by a contract in effect on May 
231, 1998 between the employer and an employee organization to 
24pay, on behalf of all its full-time employees covered by this 
25Article, all mandatory employee contributions required under 
26this Article, then the employer shall be excused from paying 
 
 
HB5851- 55 -LRB103 40703 RPS 73498 b


1the employer contribution required under this subsection (e) 
2for the balance of the term of that contract. The employer and 
3the employee organization shall jointly certify to the System 
4the existence of the contractual requirement, in such form as 
5the System may prescribe. This exclusion shall cease upon the 
6termination, extension, or renewal of the contract at any time 
7after May 1, 1998.
8 (f) If the amount of a teacher's salary for any school year 
9used to determine final average salary exceeds the member's 
10annual full-time salary rate with the same employer for the 
11previous school year by more than 6%, the teacher's employer 
12shall pay to the System, in addition to all other payments 
13required under this Section and in accordance with guidelines 
14established by the System, the present value of the increase 
15in benefits resulting from the portion of the increase in 
16salary that is in excess of 6%. This present value shall be 
17computed by the System on the basis of the actuarial 
18assumptions and tables used in the most recent actuarial 
19valuation of the System that is available at the time of the 
20computation. If a teacher's salary for the 2005-2006 school 
21year is used to determine final average salary under this 
22subsection (f), then the changes made to this subsection (f) 
23by Public Act 94-1057 shall apply in calculating whether the 
24increase in his or her salary is in excess of 6%. For the 
25purposes of this Section, change in employment under Section 
2610-21.12 of the School Code on or after June 1, 2005 shall 
 
 
HB5851- 56 -LRB103 40703 RPS 73498 b


1constitute a change in employer. The System may require the 
2employer to provide any pertinent information or 
3documentation. The changes made to this subsection (f) by 
4Public Act 94-1111 apply without regard to whether the teacher 
5was in service on or after its effective date. 
6 Whenever it determines that a payment is or may be 
7required under this subsection, the System shall calculate the 
8amount of the payment and bill the employer for that amount. 
9The bill shall specify the calculations used to determine the 
10amount due. If the employer disputes the amount of the bill, it 
11may, within 30 days after receipt of the bill, apply to the 
12System in writing for a recalculation. The application must 
13specify in detail the grounds of the dispute and, if the 
14employer asserts that the calculation is subject to subsection 
15(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section, 
16must include an affidavit setting forth and attesting to all 
17facts within the employer's knowledge that are pertinent to 
18the applicability of that subsection. Upon receiving a timely 
19application for recalculation, the System shall review the 
20application and, if appropriate, recalculate the amount due.  
21 The employer contributions required under this subsection 
22(f) may be paid in the form of a lump sum within 90 days after 
23receipt of the bill. If the employer contributions are not 
24paid within 90 days after receipt of the bill, then interest 
25will be charged at a rate equal to the System's annual 
26actuarially assumed rate of return on investment compounded 
 
 
HB5851- 57 -LRB103 40703 RPS 73498 b


1annually from the 91st day after receipt of the bill. Payments 
2must be concluded within 3 years after the employer's receipt 
3of the bill. 
4 (f-1) (Blank).
5 (g) This subsection (g) applies only to payments made or 
6salary increases given on or after June 1, 2005 but before July 
71, 2011. The changes made by Public Act 94-1057 shall not 
8require the System to refund any payments received before July 
931, 2006 (the effective date of Public Act 94-1057).
10 When assessing payment for any amount due under subsection 
11(f), the System shall exclude salary increases paid to 
12teachers under contracts or collective bargaining agreements 
13entered into, amended, or renewed before June 1, 2005. 
14 When assessing payment for any amount due under subsection 
15(f), the System shall exclude salary increases paid to a 
16teacher at a time when the teacher is 10 or more years from 
17retirement eligibility under Section 16-132 or 16-133.2. 
18 When assessing payment for any amount due under subsection 
19(f), the System shall exclude salary increases resulting from 
20overload work, including summer school, when the school 
21district has certified to the System, and the System has 
22approved the certification, that (i) the overload work is for 
23the sole purpose of classroom instruction in excess of the 
24standard number of classes for a full-time teacher in a school 
25district during a school year and (ii) the salary increases 
26are equal to or less than the rate of pay for classroom 
 
 
HB5851- 58 -LRB103 40703 RPS 73498 b


1instruction computed on the teacher's current salary and work 
2schedule. 
3 When assessing payment for any amount due under subsection 
4(f), the System shall exclude a salary increase resulting from 
5a promotion (i) for which the employee is required to hold a 
6certificate or supervisory endorsement issued by the State 
7Teacher Certification Board that is a different certification 
8or supervisory endorsement than is required for the teacher's 
9previous position and (ii) to a position that has existed and 
10been filled by a member for no less than one complete academic 
11year and the salary increase from the promotion is an increase 
12that results in an amount no greater than the lesser of the 
13average salary paid for other similar positions in the 
14district requiring the same certification or the amount 
15stipulated in the collective bargaining agreement for a 
16similar position requiring the same certification. 
17 When assessing payment for any amount due under subsection 
18(f), the System shall exclude any payment to the teacher from 
19the State of Illinois or the State Board of Education over 
20which the employer does not have discretion, notwithstanding 
21that the payment is included in the computation of final 
22average salary. 
23 (g-5) When assessing payment for any amount due under 
24subsection (f), the System shall exclude salary increases 
25resulting from overload or stipend work performed in a school 
26year subsequent to a school year in which the employer was 
 
 
HB5851- 59 -LRB103 40703 RPS 73498 b


1unable to offer or allow to be conducted overload or stipend 
2work due to an emergency declaration limiting such activities.
3 (g-10) When assessing payment for any amount due under 
4subsection (f), the System shall exclude salary increases 
5resulting from increased instructional time that exceeded the 
6instructional time required during the 2019-2020 school year. 
7 (g-15) When assessing payment for any amount due under 
8subsection (f), the System shall exclude salary increases 
9resulting from teaching summer school on or after May 1, 2021 
10and before September 15, 2022. 
11 (g-20) When assessing payment for any amount due under 
12subsection (f), the System shall exclude salary increases 
13necessary to bring a school board in compliance with Public 
14Act 101-443 or this amendatory Act of the 103rd General 
15Assembly. 
16 (h) When assessing payment for any amount due under 
17subsection (f), the System shall exclude any salary increase 
18described in subsection (g) of this Section given on or after 
19July 1, 2011 but before July 1, 2014 under a contract or 
20collective bargaining agreement entered into, amended, or 
21renewed on or after June 1, 2005 but before July 1, 2011. 
22Notwithstanding any other provision of this Section, any 
23payments made or salary increases given after June 30, 2014 
24shall be used in assessing payment for any amount due under 
25subsection (f) of this Section. 
26 (i) The System shall prepare a report and file copies of 
 
 
HB5851- 60 -LRB103 40703 RPS 73498 b


1the report with the Governor and the General Assembly by 
2January 1, 2007 that contains all of the following 
3information:
4  (1) The number of recalculations required by the 
5 changes made to this Section by Public Act 94-1057 for 
6 each employer.
7  (2) The dollar amount by which each employer's 
8 contribution to the System was changed due to 
9 recalculations required by Public Act 94-1057.
10  (3) The total amount the System received from each 
11 employer as a result of the changes made to this Section by 
12 Public Act 94-4.
13  (4) The increase in the required State contribution 
14 resulting from the changes made to this Section by Public 
15 Act 94-1057. 
16 (i-5) For school years beginning on or after July 1, 2017, 
17if the amount of a participant's salary for any school year 
18exceeds the amount of the salary set for the Governor, the 
19participant's employer shall pay to the System, in addition to 
20all other payments required under this Section and in 
21accordance with guidelines established by the System, an 
22amount determined by the System to be equal to the employer 
23normal cost, as established by the System and expressed as a 
24total percentage of payroll, multiplied by the amount of 
25salary in excess of the amount of the salary set for the 
26Governor. This amount shall be computed by the System on the 
 
 
HB5851- 61 -LRB103 40703 RPS 73498 b


1basis of the actuarial assumptions and tables used in the most 
2recent actuarial valuation of the System that is available at 
3the time of the computation. The System may require the 
4employer to provide any pertinent information or 
5documentation.
6 Whenever it determines that a payment is or may be 
7required under this subsection, the System shall calculate the 
8amount of the payment and bill the employer for that amount. 
9The bill shall specify the calculations used to determine the 
10amount due. If the employer disputes the amount of the bill, it 
11may, within 30 days after receipt of the bill, apply to the 
12System in writing for a recalculation. The application must 
13specify in detail the grounds of the dispute. Upon receiving a 
14timely application for recalculation, the System shall review 
15the application and, if appropriate, recalculate the amount 
16due. 
17 The employer contributions required under this subsection 
18may be paid in the form of a lump sum within 90 days after 
19receipt of the bill. If the employer contributions are not 
20paid within 90 days after receipt of the bill, then interest 
21will be charged at a rate equal to the System's annual 
22actuarially assumed rate of return on investment compounded 
23annually from the 91st day after receipt of the bill. Payments 
24must be concluded within 3 years after the employer's receipt 
25of the bill. 
26 (j) For purposes of determining the required State 
 
 
HB5851- 62 -LRB103 40703 RPS 73498 b


1contribution to the System, the value of the System's assets 
2shall be equal to the actuarial value of the System's assets, 
3which shall be calculated as follows:
4 As of June 30, 2008, the actuarial value of the System's 
5assets shall be equal to the market value of the assets as of 
6that date. In determining the actuarial value of the System's 
7assets for fiscal years after June 30, 2008, any actuarial 
8gains or losses from investment return incurred in a fiscal 
9year shall be recognized in equal annual amounts over the 
105-year period following that fiscal year. 
11 This subsection is inoperative on and after July 1, 2034. 
12 (k) For purposes of determining the required State 
13contribution to the system for a particular year, the 
14actuarial value of assets shall be assumed to earn a rate of 
15return equal to the system's actuarially assumed rate of 
16return. 
17(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21; 
18102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff. 
198-11-23.)

20 (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
21 Sec. 18-131. Financing; employer contributions. 
22 (a) The State of Illinois shall make contributions to this 
23System by appropriations of the amounts which, together with 
24the contributions of participants, net earnings on 
25investments, and other income, will meet the costs of 
 
 
HB5851- 63 -LRB103 40703 RPS 73498 b


1maintaining and administering this System on a 100% 90% funded 
2basis by the end of State fiscal year 2048 in accordance with 
3actuarial recommendations.
4 (b) The Board shall determine the amount of State 
5contributions required for each fiscal year on the basis of 
6the actuarial tables and other assumptions adopted by the 
7Board and the prescribed rate of interest, using the formula 
8in subsection (c). In making its determination, the Board 
9shall disregard any contributions scheduled to be received in 
10a future State fiscal year under the Budget Stabilization Act. 
11 (c) Beginning in State fiscal year 2049, the minimum 
12contribution to the System to be made by the State for each 
13State fiscal year shall be the contribution amount for the 
14upcoming State fiscal year estimated in the previous year's 
15actuarial valuation required by Section 18-140 plus the 
16amounts required under subsection (c-5), such that the total 
17assets of the System equal 100% of the total actuarial 
18liabilities of the System 20 years after the State fiscal year 
19during which the contribution is made. The required State 
20contribution shall be determined under the entry age normal 
21actuarial cost method. 
22 For State fiscal years 2035 through 2048, the minimum 
23contribution to the System to be made by the State for each 
24State fiscal year shall be the contribution amount for the 
25upcoming State fiscal year estimated in the previous year's 
26actuarial valuation required by Section 18-140 plus the 
 
 
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1amounts required under subsection (c-5), such that the total 
2assets of the System equal 100% of the total actuarial 
3liabilities of the System 20 years after the State fiscal year 
4during which the contribution is made. In making these 
5determinations, the required State contribution shall be 
6calculated each year as a level percentage of payroll over the 
7years remaining to and including fiscal year 2048 and shall be 
8determined under the projected unit credit actuarial cost 
9method. 
10 For State fiscal years 2026 through 2034, the minimum 
11contribution to the System to be made by the State for each 
12State fiscal year shall be an amount determined by the System 
13to be sufficient to bring the total assets of the System up to 
14100% of the total actuarial liabilities of the System by the 
15end of State fiscal year 2048. In making these determinations, 
16the required State contribution shall be calculated each year 
17as a level percentage of payroll over the years remaining to 
18and including fiscal year 2048 and shall be determined under 
19the projected unit credit actuarial cost method. 
20 For State fiscal years 2012 through 2025 2045, the minimum 
21contribution to the System to be made by the State for each 
22fiscal year shall be an amount determined by the System to be 
23sufficient to bring the total assets of the System up to 90% of 
24the total actuarial liabilities of the System by the end of 
25State fiscal year 2045. In making these determinations, the 
26required State contribution shall be calculated each year as a 
 
 
HB5851- 65 -LRB103 40703 RPS 73498 b


1level percentage of payroll over the years remaining to and 
2including fiscal year 2045 and shall be determined under the 
3projected unit credit actuarial cost method.
4 A change in an actuarial or investment assumption that 
5increases or decreases the required State contribution and 
6first applies in State fiscal year 2018 and before State 
7fiscal year 2035 or thereafter shall be implemented in equal 
8annual amounts over a 5-year period beginning in the State 
9fiscal year in which the actuarial change first applies to the 
10required State contribution.
11 A change in an actuarial or investment assumption that 
12increases or decreases the required State contribution and 
13first applied to the State contribution in fiscal year 2014, 
142015, 2016, or 2017 shall be implemented:
15  (i) as already applied in State fiscal years before 
16 2018; and
17  (ii) in the portion of the 5-year period beginning in 
18 the State fiscal year in which the actuarial change first 
19 applied that occurs in State fiscal year 2018 or 
20 thereafter, by calculating the change in equal annual 
21 amounts over that 5-year period and then implementing it 
22 at the resulting annual rate in each of the remaining 
23 fiscal years in that 5-year period.
24 For State fiscal years 1996 through 2005, the State 
25contribution to the System, as a percentage of the applicable 
26employee payroll, shall be increased in equal annual 
 
 
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1increments so that by State fiscal year 2011, the State is 
2contributing at the rate required under this Section.
3 Notwithstanding any other provision of this Article, the 
4total required State contribution for State fiscal year 2006 
5is $29,189,400. 
6 Notwithstanding any other provision of this Article, the 
7total required State contribution for State fiscal year 2007 
8is $35,236,800. 
9 For each of State fiscal years 2008 through 2009, the 
10State contribution to the System, as a percentage of the 
11applicable employee payroll, shall be increased in equal 
12annual increments from the required State contribution for 
13State fiscal year 2007, so that by State fiscal year 2011, the 
14State is contributing at the rate otherwise required under 
15this Section. 
16 Notwithstanding any other provision of this Article, the 
17total required State contribution for State fiscal year 2010 
18is $78,832,000 and shall be made from the proceeds of bonds 
19sold in fiscal year 2010 pursuant to Section 7.2 of the General 
20Obligation Bond Act, less (i) the pro rata share of bond sale 
21expenses determined by the System's share of total bond 
22proceeds, (ii) any amounts received from the General Revenue 
23Fund in fiscal year 2010, and (iii) any reduction in bond 
24proceeds due to the issuance of discounted bonds, if 
25applicable. 
26 Notwithstanding any other provision of this Article, the 
 
 
HB5851- 67 -LRB103 40703 RPS 73498 b


1total required State contribution for State fiscal year 2011 
2is the amount recertified by the System on or before April 1, 
32011 pursuant to Section 18-140 and shall be made from the 
4proceeds of bonds sold in fiscal year 2011 pursuant to Section 
57.2 of the General Obligation Bond Act, less (i) the pro rata 
6share of bond sale expenses determined by the System's share 
7of total bond proceeds, (ii) any amounts received from the 
8General Revenue Fund in fiscal year 2011, and (iii) any 
9reduction in bond proceeds due to the issuance of discounted 
10bonds, if applicable. 
11 Beginning in State fiscal year 2046, the minimum State 
12contribution for each fiscal year shall be the amount needed 
13to maintain the total assets of the System at 90% of the total 
14actuarial liabilities of the System.
15 Amounts received by the System pursuant to Section 25 of 
16the Budget Stabilization Act or Section 8.12 of the State 
17Finance Act in any fiscal year do not reduce and do not 
18constitute payment of any portion of the minimum State 
19contribution required under this Article in that fiscal year. 
20Such amounts shall not reduce, and shall not be included in the 
21calculation of, the required State contributions under this 
22Article in any future year until the System has reached a 
23funding ratio of at least 90%. A reference in this Article to 
24the "required State contribution" or any substantially similar 
25term does not include or apply to any amounts payable to the 
26System under Section 25 of the Budget Stabilization Act. 
 
 
HB5851- 68 -LRB103 40703 RPS 73498 b


1 Notwithstanding any other provision of this Section, the 
2required State contribution for State fiscal year 2005 and for 
3fiscal year 2008 and each fiscal year thereafter, as 
4calculated under this Section and certified under Section 
518-140, shall not exceed an amount equal to (i) the amount of 
6the required State contribution that would have been 
7calculated under this Section for that fiscal year if the 
8System had not received any payments under subsection (d) of 
9Section 7.2 of the General Obligation Bond Act, minus (ii) the 
10portion of the State's total debt service payments for that 
11fiscal year on the bonds issued in fiscal year 2003 for the 
12purposes of that Section 7.2, as determined and certified by 
13the Comptroller, that is the same as the System's portion of 
14the total moneys distributed under subsection (d) of Section 
157.2 of the General Obligation Bond Act. In determining this 
16maximum for State fiscal years 2008 through 2010, however, the 
17amount referred to in item (i) shall be increased, as a 
18percentage of the applicable employee payroll, in equal 
19increments calculated from the sum of the required State 
20contribution for State fiscal year 2007 plus the applicable 
21portion of the State's total debt service payments for fiscal 
22year 2007 on the bonds issued in fiscal year 2003 for the 
23purposes of Section 7.2 of the General Obligation Bond Act, so 
24that, by State fiscal year 2011, the State is contributing at 
25the rate otherwise required under this Section.
26 (c-5) For State fiscal year 2035 and each State fiscal 
 
 
HB5851- 69 -LRB103 40703 RPS 73498 b


1year thereafter, the contribution to the System to be made by 
2the State shall include an adjustment for differences between 
3the unfunded liability reported in the current actuarial 
4valuation and the unfunded liability reported in the previous 
5year's actuarial valuation required by Section 18-140. The 
6adjustment shall be implemented in equal annual amounts over a 
720-year period beginning in the State fiscal year in which the 
8current actuarial valuation is used to determine the required 
9State contribution under subsection (e). 
10 (d) For purposes of determining the required State 
11contribution to the System, the value of the System's assets 
12shall be equal to the actuarial value of the System's assets, 
13which shall be calculated as follows:
14 As of June 30, 2008, the actuarial value of the System's 
15assets shall be equal to the market value of the assets as of 
16that date. In determining the actuarial value of the System's 
17assets for fiscal years after June 30, 2008, any actuarial 
18gains or losses from investment return incurred in a fiscal 
19year shall be recognized in equal annual amounts over the 
205-year period following that fiscal year. 
21 This subsection is inoperative on and after July 1, 2034. 
22 (e) For purposes of determining the required State 
23contribution to the system for a particular year, the 
24actuarial value of assets shall be assumed to earn a rate of 
25return equal to the system's actuarially assumed rate of 
26return. 
 
 
HB5851- 70 -LRB103 40703 RPS 73498 b


1(Source: P.A. 100-23, eff. 7-6-17.)

2 (40 ILCS 5/1-103.3 rep.)
3 Section 15. The Illinois Pension Code is amended by 
4repealing Section 1-103.3.