Bill Text: IL HB6252 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the State Employees Group Insurance Act of 1971. Shifts the costs of health insurance coverage for future employees of certain higher education institutions from the State to those higher education institutions. Creates a new health benefit program for those employees, once they become annuitants, and for their dependent beneficiaries. Terminates provisions providing for the ongoing transfer of funds from the General Revenue Fund to the Teacher Health Insurance Security Fund and the Community College Health Insurance Security Fund. Amends the Illinois Pension Code. Requires certain employers to provide a tax-sheltered annuity retirement plan to eligible employees. Requires current members and participants to elect whether to maintain their current benefits in the State-funded retirement systems. Prohibits the State-funded retirement systems from accepting new members or participants. Changes the amount of the required State contributions to the State-funded retirement systems and, in the State Universities and Downstate Teacher Articles, shifts the liability for making those contributions to employers. Amends the State Pension Funds Continuing Appropriation Act. Terminates continuing appropriations from the General Revenue Fund to the Teacher Health Insurance Security Fund and the Community College Health Insurance Security Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB6252 Detail]

Download: Illinois-2011-HB6252-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB6252 Introduced , by Rep. André M. Thapedi SYNOPSIS AS INTRODUCED:
See Index
Amends the State Employees Group Insurance Act of 1971. Shifts the costs of health insurance coverage for future employees of certain higher education institutions from the State to those higher education institutions. Creates a new health benefit program for those employees, once they become annuitants, and for their dependent beneficiaries. Terminates provisions providing for the ongoing transfer of funds from the General Revenue Fund to the Teacher Health Insurance Security Fund and the Community College Health Insurance Security Fund. Amends the Illinois Pension Code. Requires certain employers to provide a tax-sheltered annuity retirement plan to eligible employees. Requires current members and participants to elect whether to maintain their current benefits in the State-funded retirement systems. Prohibits the State-funded retirement systems from accepting new members or participants. Changes the amount of the required State contributions to the State-funded retirement systems and, in the State Universities and Downstate Teacher Articles, shifts the liability for making those contributions to employers. Amends the State Pension Funds Continuing Appropriation Act. Terminates continuing appropriations from the General Revenue Fund to the Teacher Health Insurance Security Fund and the Community College Health Insurance Security Fund. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Legislative findings. The General Assembly
hereby finds that:
(1) the last two decades of the Twentieth Century saw
simultaneously robust growth in bond and stock markets,
which boosted funding for promised benefits;
(2) there was a tendency, as a result, to spend that
newfound wealth by granting higher benefits or by providing
employers substantial contribution reductions;
(3) benefit levels were raised to what now appear to be
unsustainable levels, given prevailing financial
constraints;
(4) applying reductions only to new hires does not
produce meaningful savings for many years and creates stark
intergenerational disparity;
(5) current required contributions are higher than the
State budget can tolerate during current severe economic
distress, and near-term reductions will not reduce
ultimate costs, but distribute them differently, creating
an intergenerational debt transfer;
(6) financial markets will offer fewer and
lower-returning investment opportunities; and

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(7) many funds and plan sponsors are interested in less
volatility after the experiences of the past decade.
Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Sections 3, 6.6, and 6.10 and by adding
Sections 6.10A and 6.10B as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose of
implementing specific programs providing benefits under this
Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and capable
of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or has
retired, on or after January 1, 1966 on an immediate annuity
under the provisions of Articles 2, 14 (including an employee
who has elected to receive an alternative retirement
cancellation payment under Section 14-108.5 of the Illinois
Pension Code in lieu of an annuity), 15 (including an employee
who has retired under the optional retirement program

HB6252 - 3 - LRB097 23389 JDS 72257 b
established under Section 15-158.2), paragraphs (2), (3), or
(5) of Section 16-106, or Article 18 of the Illinois Pension
Code; (2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status as
an annuitant, even though the annuity in relation to which such
coverage was provided is a proportional annuity based on less
than the minimum period of service required for a retirement
annuity in the system involved; (3) any person not otherwise
covered by this Act who has retired as a participating member
under Article 2 of the Illinois Pension Code but is ineligible
for the retirement annuity under Section 2-119 of the Illinois
Pension Code; (4) the spouse of any person who is receiving a
retirement annuity under Article 18 of the Illinois Pension
Code and who is covered under a group health insurance program
sponsored by a governmental employer other than the State of
Illinois and who has irrevocably elected to waive his or her
coverage under this Act and to have his or her spouse
considered as the "annuitant" under this Act and not as a
"dependent"; or (5) an employee who retires, or has retired,
from a qualified position, as determined according to rules
promulgated by the Director, under a qualified local
government, a qualified rehabilitation facility, a qualified
domestic violence shelter or service, or a qualified child
advocacy center. (For definition of "retired employee", see (p)
post).
(b-5) (Blank).

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(b-6) (Blank).
(b-7) (Blank).
(c) "Carrier" means (1) an insurance company, a corporation
organized under the Limited Health Service Organization Act or
the Voluntary Health Services Plan Act, a partnership, or other
nongovernmental organization, which is authorized to do group
life or group health insurance business in Illinois, or (2) the
State of Illinois as a self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held by
the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or benefits
payable under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Compensation" also means
salary or wages paid to an employee of any qualified local

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government, qualified rehabilitation facility, qualified
domestic violence shelter or service, or qualified child
advocacy center.
(e) "Commission" means the State Employees Group Insurance
Advisory Commission authorized by this Act. Commencing July 1,
1984, "Commission" as used in this Act means the Commission on
Government Forecasting and Accountability as established by
the Legislative Commission Reorganization Act of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected by
the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely by
the State of Illinois without reduction of the member's salary.
(g) "Department" means any department, institution, board,
commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by the
General Assembly from any State fund, or against trust funds
held by the State Treasurer and includes boards of trustees of
the retirement systems created by Articles 2, 14, 15, 16 and 18
of the Illinois Pension Code. "Department" also includes the
Illinois Comprehensive Health Insurance Board, the Board of

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Examiners established under the Illinois Public Accounting
Act, and the Illinois Finance Authority.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any child
(1) from birth to age 26 including an adopted child, a child
who lives with the member from the time of the filing of a
petition for adoption until entry of an order of adoption, a
stepchild or adjudicated child, or a child who lives with the
member if such member is a court appointed guardian of the
child or (2) age 19 or over who is mentally or physically
disabled from a cause originating prior to the age of 19 (age
26 if enrolled as an adult child dependent). For the health
plan only, the term "dependent" also includes (1) any person
enrolled prior to the effective date of this Section who is
dependent upon the member to the extent that the member may
claim such person as a dependent for income tax deduction
purposes and (2) any person who has received after June 30,
2000 an organ transplant and who is financially dependent upon
the member and eligible to be claimed as a dependent for income
tax purposes. A member requesting to cover any dependent must
provide documentation as requested by the Department of Central
Management Services and file with the Department any and all
forms required by the Department.
(i) "Director" means the Director of the Illinois
Department of Central Management Services or of any successor
agency designated to administer this Act.

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(j) "Eligibility period" means the period of time a member
has to elect enrollment in programs or to select benefits
without regard to age, sex or health.
(k) "Employee" means and includes each officer or employee
in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a department
or on a warrant or check issued and drawn by a department upon
a trust, federal or other fund or on a warrant issued pursuant
to a payroll certified by an elected or duly appointed officer
of the State or who receives payment of the performance of
personal services on a warrant issued pursuant to a payroll
certified by a Department and drawn by the Comptroller upon the
State Treasurer against appropriations made by the General
Assembly from any fund or against trust funds held by the State
Treasurer, and (2) is employed full-time or part-time in a
position normally requiring actual performance of duty during
not less than 1/2 of a normal work period, as established by
the Director in cooperation with each department, except that
persons elected by popular vote will be considered employees
during the entire term for which they are elected regardless of
hours devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of the
State retirement systems under Articles 2, 14, 15 (either the
regular Article 15 system or the optional retirement program

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established under Section 15-158.2) or 18, or under paragraph
(2), (3), or (5) of Section 16-106, of the Illinois Pension
Code, but such term does include persons who are employed
during the 6 month qualifying period under Article 14 of the
Illinois Pension Code. Such term also includes any person who
(1) after January 1, 1966, is receiving ordinary or accidental
disability benefits under Articles 2, 14, 15 (including
ordinary or accidental disability benefits under the optional
retirement program established under Section 15-158.2),
paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
the Illinois Pension Code, for disability incurred after
January 1, 1966, (2) receives total permanent or total
temporary disability under the Workers' Compensation Act or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under this Act and
has retired as a participating member under Article 2 of the
Illinois Pension Code but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code.
However, a person who satisfies the criteria of the foregoing
definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code is also an "employee" for the purposes of
this Act. "Employee" also includes any person receiving or
eligible for benefits under a sick pay plan established in

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accordance with Section 36 of the State Finance Act. "Employee"
also includes (i) each officer or employee in the service of a
qualified local government, including persons appointed as
trustees of sanitary districts regardless of hours devoted to
the service of the sanitary district, (ii) each employee in the
service of a qualified rehabilitation facility, (iii) each
full-time employee in the service of a qualified domestic
violence shelter or service, and (iv) each full-time employee
in the service of a qualified child advocacy center, as
determined according to rules promulgated by the Director.
Notwithstanding any other provision of this subsection (k),
"employee" does not include a person first employed on or after
the effective date of this amendatory Act of the 97th General
Assembly by an employer listed under Section 15-106 of the
Illinois Pension Code.
(l) "Member" means an employee, annuitant, retired
employee or survivor. In the case of an annuitant or retired
employee who first becomes an annuitant or retired employee on
or after the effective date of this amendatory Act of the 97th
General Assembly, the individual must meet the minimum vesting
requirements of the applicable retirement system in order to be
eligible for group insurance benefits under that system. In the
case of a survivor who first becomes a survivor on or after the
effective date of this amendatory Act of the 97th General
Assembly, the deceased employee, annuitant, or retired
employee upon whom the annuity is based must have been eligible

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to participate in the group insurance system under the
applicable retirement system in order for the survivor to be
eligible for group insurance benefits under that system.
(m) "Optional coverages or benefits" means those coverages
or benefits available to the member on his or her voluntary
election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a health benefits program offered
by the State of Illinois for persons eligible for the plan.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact that
such person retired prior to January 1, 1966. Such term also
includes any person formerly employed by the University of
Illinois in the Cooperative Extension Service who would be an
annuitant but for the fact that such person was made ineligible
to participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the Illinois
Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who satisfies
the definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the

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Illinois Pension Code; (2) the surviving dependent of any
person formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant except
for the fact that such person was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the Illinois
Pension Code; and (3) the surviving dependent of a person who
was an annuitant under this Act by virtue of receiving an
alternative retirement cancellation payment under Section
14-108.5 of the Illinois Pension Code. Notwithstanding any
other provision of this subsection (q), "survivor" does not
include a person receiving an annuity as a survivor of a person
first employed on or after the effective date of this
amendatory Act of the 97th General Assembly by an employer
listed under Section 15-106 of the Illinois Pension Code.
(q-2) "SERS" means the State Employees' Retirement System
of Illinois, created under Article 14 of the Illinois Pension
Code.
(q-3) "SURS" means the State Universities Retirement
System, created under Article 15 of the Illinois Pension Code.
(q-4) "TRS" means the Teachers' Retirement System of the
State of Illinois, created under Article 16 of the Illinois
Pension Code.
(q-5) (Blank).
(q-6) (Blank).
(q-7) (Blank).

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(r) "Medical services" means the services provided within
the scope of their licenses by practitioners in all categories
licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district (including a
combination of school districts under the Intergovernmental
Cooperation Act), special district or other unit, designated as
a unit of local government by law, which exercises limited
governmental powers or powers in respect to limited
governmental subjects, any not-for-profit association with a
membership that primarily includes townships and township
officials, that has duties that include provision of research
service, dissemination of information, and other acts for the
purpose of improving township government, and that is funded
wholly or partly in accordance with Section 85-15 of the
Township Code; any not-for-profit corporation or association,
with a membership consisting primarily of municipalities, that
operates its own utility system, and provides research,
training, dissemination of information, or other acts to
promote cooperation between and among municipalities that
provide utility services and for the advancement of the goals
and purposes of its membership; the Southern Illinois
Collegiate Common Market, which is a consortium of higher
education institutions in Southern Illinois; the Illinois
Association of Park Districts; and any hospital provider that
is owned by a county that has 100 or fewer hospital beds and

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has not already joined the program. "Qualified local
government" means a unit of local government approved by the
Director and participating in a program created under
subsection (i) of Section 10 of this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor to
the Department of Mental Health and Developmental
Disabilities) to provide services to persons with disabilities
and which receives funds from the State of Illinois for
providing those services, approved by the Director and
participating in a program created under subsection (j) of
Section 10 of this Act.
(u) "Qualified domestic violence shelter or service" means
any Illinois domestic violence shelter or service and its
administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code; and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or

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(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years of
creditable service under Article 16 of the Illinois Pension
Code or was enrolled in the health insurance program
offered under that Article on the effective date of this
amendatory Act of 1995, or (iv) is a recipient or survivor
of a recipient of a disability benefit under Article 16 of
the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in this
Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C) natural,
step, adjudicated, or adopted child who is (i) under age
26, (ii) was, on January 1, 1996, participating as a
dependent beneficiary in the health insurance program
offered under Article 16 of the Illinois Pension Code, or
(iii) age 19 or over who is mentally or physically disabled
from a cause originating prior to the age of 19 (age 26 if
enrolled as an adult child).
"TRS dependent beneficiary" does not include, as indicated
under paragraph (2) of this subsection (w), a dependent of the
survivor of a TRS benefit recipient who first becomes a
dependent of a survivor of a TRS benefit recipient on or after

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the effective date of this amendatory Act of the 97th General
Assembly unless that dependent would have been eligible for
coverage as a dependent of the deceased TRS benefit recipient
upon whom the survivor benefit is based.
(x) "Military leave" refers to individuals in basic
training for reserves, special/advanced training, annual
training, emergency call up, activation by the President of the
United States, or any other training or duty in service to the
United States Armed Forces.
(y) (Blank).
(z) "Community college benefit recipient" means a person
who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly survivor's annuity or
retirement annuity under Article 15 of the Illinois Pension
Code; and
(3) either (i) was a full-time employee of a community
college district or an association of community college
boards created under the Public Community College Act
(other than an employee whose last employer under Article
15 of the Illinois Pension Code was a community college
district subject to Article VII of the Public Community
College Act) and was eligible to participate in a group
health benefit plan as an employee during the time of
employment with a community college district (other than a
community college district subject to Article VII of the

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Public Community College Act) or an association of
community college boards, or (ii) is the survivor of a
person described in item (i).
(aa) "Community college dependent beneficiary" means a
person who:
(1) is not a "member" or "dependent" as defined in this
Section; and
(2) is a community college benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least half
of his or her support from the community college benefit
recipient, or (C) natural, step, adjudicated, or adopted
child who is (i) under age 26, or (ii) age 19 or over and
mentally or physically disabled from a cause originating
prior to the age of 19 (age 26 if enrolled as an adult
child).
"Community college dependent beneficiary" does not
include, as indicated under paragraph (2) of this subsection
(aa), a dependent of the survivor of a community college
benefit recipient who first becomes a dependent of a survivor
of a community college benefit recipient on or after the
effective date of this amendatory Act of the 97th General
Assembly unless that dependent would have been eligible for
coverage as a dependent of the deceased community college
benefit recipient upon whom the survivor annuity is based.
(bb) "Qualified child advocacy center" means any Illinois
child advocacy center and its administrative offices funded by

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the Department of Children and Family Services, as defined by
the Children's Advocacy Center Act (55 ILCS 80/), approved by
the Director and participating in a program created under
subsection (n) of Section 10.
(cc) "New university benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
(2) is not a "community college benefit recipient" as
defined in this Section;
(3) is receiving a monthly survivor's annuity or
retirement annuity under Article 15 of the Illinois Pension
Code; and
(4) was a full-time employee of an employer listed
under Section 15-106 of the Illinois Pension Code.
(dd) "New university dependent beneficiary" means a person
who:
(1) is not a "member" or "dependent" as defined in this
Section;
(2) is not a "community college dependent beneficiary"
as defined in this Section; and
(3) is a new university benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least half
of his or her support from the new university benefit
recipient, or (C) natural, step, adjudicated, or adopted
child who is (i) under age 26, or (ii) age 19 or over and
mentally or physically disabled from a cause originating
prior to the age of 19 (age 26 if enrolled as an adult

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child).
(Source: P.A. 96-756, eff. 1-1-10; 96-1519, eff. 2-4-11;
97-668, eff. 1-13-12; 97-695, eff. 7-1-12.)
(5 ILCS 375/6.6)
Sec. 6.6. Contributions to the Teacher Health Insurance
Security Fund.
(a) Beginning July 1, 1995, all active contributors of the
Teachers' Retirement System (established under Article 16 of
the Illinois Pension Code) who are not employees of a
department as defined in Section 3 of this Act shall make
contributions toward the cost of annuitant and survivor health
benefits. These contributions shall be at the following rates:
until January 1, 2002, 0.5% of salary; beginning January 1,
2002, 0.65% of salary; beginning July 1, 2003, 0.75% of salary;
beginning July 1, 2005, 0.80% of salary; beginning July 1,
2007, a percentage of salary to be determined by the Department
of Central Management Services by rule, which in each fiscal
year shall not exceed 105% of the percentage of salary actually
required to be paid in the previous fiscal year.
These contributions shall be deducted by the employer and
paid to the System as service agent for the Department of
Central Management Services. The System may use the same
processes for collecting the contributions required by this
subsection that it uses to collect contributions received from
school districts and other covered employers under Sections

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16-154 and 16-155 of the Illinois Pension Code.
An employer may agree to pick up or pay the contributions
required under this subsection on behalf of the teacher; such
contributions shall be deemed to have to have been paid by the
teacher. Beginning January 1, 2002, if the employer does not
directly pay the required member contribution, then the
employer shall reduce the member's salary by an amount equal to
the required contribution and shall then pay the contribution
on behalf of the member. This reduction shall not change the
amounts reported as creditable earnings to the Teachers'
Retirement System.
A person who purchases optional service credit under
Article 16 of the Illinois Pension Code for a period after June
30, 1995 must also make a contribution under this subsection
for that optional credit, at the rate provided in subsection
(a), based on the salary used in computing the optional service
credit, plus interest on this employee contribution. This
contribution shall be collected by the System as service agent
for the Department of Central Management Services. The
contribution required under this subsection for the optional
service credit must be paid in full before any annuity based on
that credit begins.
(a-5) Beginning January 1, 2002, every employer of a
teacher (other than an employer that is a department as defined
in Section 3 of this Act) shall pay an employer contribution
toward the cost of annuitant and survivor health benefits.

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These contributions shall be computed as follows:
(1) Beginning January 1, 2002 through June 30, 2003,
the employer contribution shall be equal to 0.4% of each
teacher's salary.
(2) Beginning July 1, 2003, the employer contribution
shall be equal to 0.5% of each teacher's salary.
(3) Beginning July 1, 2005, the employer contribution
shall be equal to 0.6% of each teacher's salary.
(4) Beginning July 1, 2007, the employer contribution
shall be a percentage of each teacher's salary to be
determined by the Department of Central Management
Services by rule, which in each fiscal year shall not
exceed 105% of the percentage of each teacher's salary
actually required to be paid in the previous fiscal year.
These contributions shall be paid by the employer to the
System as service agent for the Department of Central
Management Services. The System may use the same processes for
collecting the contributions required by this subsection that
it uses to collect contributions received from school districts
and other covered employers under the Illinois Pension Code.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
(b) The Teachers' Retirement System shall promptly deposit

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all moneys collected under subsections (a) and (a-5) of this
Section into the Teacher Health Insurance Security Fund created
in Section 6.5 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.5 of this Act and shall not be considered to be
assets of the Teachers' Retirement System. Contributions made
under this Section are not transferable to other pension funds
or retirement systems and are not refundable upon termination
of service.
(c) On or before November 15 of each year, the Board of
Trustees of the Teachers' Retirement System shall certify to
the Governor, the Director of Central Management Services, and
the State Comptroller its estimate of the total amount of
contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year. The amount certified shall be
decreased or increased each year by the amount that the actual
active teacher contributions either fell short of or exceeded
the estimate used by the Board in making the certification for
the previous fiscal year. The certification shall include a
detailed explanation of the methods and information that the
Board relied upon in preparing its estimate. As soon as
possible after the effective date of this amendatory Act of the
92nd General Assembly, the Board shall recalculate and
recertify its certifications for fiscal years 2002 and 2003.
(d) Beginning in fiscal year 1996 and ending with the close
of fiscal year 2013, on the first day of each month, or as soon

HB6252 - 22 - LRB097 23389 JDS 72257 b
thereafter as may be practical, the State Treasurer and the
State Comptroller shall transfer from the General Revenue Fund
to the Teacher Health Insurance Security Fund 1/12 of the
annual amount appropriated for that fiscal year to the State
Comptroller for deposit into the Teacher Health Insurance
Security Fund under Section 1.3 of the State Pension Funds
Continuing Appropriation Act.
(e) Except where otherwise specified in this Section, the
definitions that apply to Article 16 of the Illinois Pension
Code apply to this Section.
(f) (Blank).
(Source: P.A. 92-505, eff. 12-20-01; 93-679, eff. 6-30-04.)
(5 ILCS 375/6.10)
Sec. 6.10. Contributions to the Community College Health
Insurance Security Fund.
(a) Beginning January 1, 1999, every active contributor of
the State Universities Retirement System (established under
Article 15 of the Illinois Pension Code) who (1) is a full-time
employee of a community college district (other than a
community college district subject to Article VII of the Public
Community College Act) or an association of community college
boards and (2) is not an employee as defined in Section 3 of
this Act shall make contributions toward the cost of community
college annuitant and survivor health benefits at the rate of
0.50% of salary.

HB6252 - 23 - LRB097 23389 JDS 72257 b
These contributions shall be deducted by the employer and
paid to the State Universities Retirement System as service
agent for the Department of Central Management Services. The
System may use the same processes for collecting the
contributions required by this subsection that it uses to
collect the contributions received from those employees under
Section 15-157 of the Illinois Pension Code. An employer may
agree to pick up or pay the contributions required under this
subsection on behalf of the employee; such contributions shall
be deemed to have been paid by the employee.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (a) into the
Community College Health Insurance Security Fund created in
Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(b) Beginning January 1, 1999, every community college
district (other than a community college district subject to
Article VII of the Public Community College Act) or association
of community college boards that is an employer under the State
Universities Retirement System shall contribute toward the
cost of the community college health benefits provided under

HB6252 - 24 - LRB097 23389 JDS 72257 b
Section 6.9 of this Act an amount equal to 0.50% of the salary
paid to its full-time employees who participate in the State
Universities Retirement System and are not members as defined
in Section 3 of this Act.
These contributions shall be paid by the employer to the
State Universities Retirement System as service agent for the
Department of Central Management Services. The System may use
the same processes for collecting the contributions required by
this subsection that it uses to collect the contributions
received from those employers under Section 15-155 of the
Illinois Pension Code.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (b) into the
Community College Health Insurance Security Fund created in
Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
The Department of Healthcare and Family Services, or any
successor agency designated to procure healthcare contracts
pursuant to this Act, is authorized to establish funds,
separate accounts provided by any bank or banks as defined by
the Illinois Banking Act, or separate accounts provided by any

HB6252 - 25 - LRB097 23389 JDS 72257 b
savings and loan association or associations as defined by the
Illinois Savings and Loan Act of 1985 to be held by the
Director, outside the State treasury, for the purpose of
receiving the transfer of moneys from the Community College
Health Insurance Security Fund. The Department may promulgate
rules further defining the methodology for the transfers. Any
interest earned by moneys in the funds or accounts shall inure
to the Community College Health Insurance Security Fund. The
transferred moneys, and interest accrued thereon, shall be used
exclusively for transfers to administrative service
organizations or their financial institutions for payments of
claims to claimants and providers under the self-insurance
health plan. The transferred moneys, and interest accrued
thereon, shall not be used for any other purpose including, but
not limited to, reimbursement of administration fees due the
administrative service organization pursuant to its contract
or contracts with the Department.
(c) On or before November 15 of each year, the Board of
Trustees of the State Universities Retirement System shall
certify to the Governor, the Director of Central Management
Services, and the State Comptroller its estimate of the total
amount of contributions to be paid under subsection (a) of this
Section for the next fiscal year. Beginning in fiscal year
2008, the amount certified shall be decreased or increased each
year by the amount that the actual active employee
contributions either fell short of or exceeded the estimate

HB6252 - 26 - LRB097 23389 JDS 72257 b
used by the Board in making the certification for the previous
fiscal year. The State Universities Retirement System shall
calculate the amount of actual active employee contributions in
fiscal years 1999 through 2005. Based upon this calculation,
the fiscal year 2008 certification shall include an amount
equal to the cumulative amount that the actual active employee
contributions either fell short of or exceeded the estimate
used by the Board in making the certification for those fiscal
years. The certification shall include a detailed explanation
of the methods and information that the Board relied upon in
preparing its estimate. As soon as possible after the effective
date of this Section, the Board shall submit its estimate for
fiscal year 1999.
(d) Beginning in fiscal year 1999 and ending with the close
of fiscal year 2013, on the first day of each month, or as soon
thereafter as may be practical, the State Treasurer and the
State Comptroller shall transfer from the General Revenue Fund
to the Community College Health Insurance Security Fund 1/12 of
the annual amount appropriated for that fiscal year to the
State Comptroller for deposit into the Community College Health
Insurance Security Fund under Section 1.4 of the State Pension
Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section, the
definitions that apply to Article 15 of the Illinois Pension
Code apply to this Section.
(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)

HB6252 - 27 - LRB097 23389 JDS 72257 b
(5 ILCS 375/6.10A new)
Sec. 6.10A. Health benefits for new university benefit
recipients and new university dependent beneficiaries.
(a) Purpose. It is the purpose of this amendatory Act of
97th General Assembly to establish a uniform program of health
benefits for new university benefit recipients and their
dependent beneficiaries under the administration of the
Department of Central Management Services.
(b) Creation of program. Beginning July 1, 2013, the
Department of Central Management Services shall be responsible
for administering a program of health benefits for new
university benefit recipients and new university dependent
beneficiaries under this Section. The State Universities
Retirement System and the various employers shall cooperate
with the Department in this endeavor.
(c) Eligibility. All new university benefit recipients and
new university dependent beneficiaries shall be eligible to
participate in the program established under this Section,
without any interruption or delay in coverage or limitation as
to pre-existing medical conditions. Eligibility to participate
shall be determined by the State Universities Retirement
System. Eligibility information shall be communicated to the
Department of Central Management Services in a format
acceptable to the Department.
(d) Coverage. The health benefit coverage provided under

HB6252 - 28 - LRB097 23389 JDS 72257 b
this Section shall be a program of health, dental, and vision
benefits.
The program of health benefits under this Section may
include any or all of the benefit limitations, including, but
not limited to, a reduction in benefits based on eligibility
for federal medicare benefits, that are provided under
subsection (a) of Section 6 of this Act for other health
benefit programs under this Act.
(e) Insurance rates and premiums. The Director shall
determine the insurance rates and premiums for new university
benefit recipients and new university dependent beneficiaries.
Rates and premiums may be based in part on age and eligibility
for federal Medicare coverage. The Director shall also
determine premiums that will allow for the establishment of an
actuarially sound reserve for this program.
The cost of health benefits under the program shall be paid
as follows:
(1) For a new university benefit recipient, up to 75%
of the total insurance rate shall be paid from the State
Universities Health Insurance Security Fund.
(2) The balance of the rate of insurance, including the
entire premium for any coverage for new university
dependent beneficiaries that has been elected, shall be
paid by deductions authorized by the new university benefit
recipient to be withheld from his or her monthly annuity or
benefit payment from the State Universities Retirement

HB6252 - 29 - LRB097 23389 JDS 72257 b
System; except that (i) if the balance of the cost of
coverage exceeds the amount of the monthly annuity or
benefit payment, the difference shall be paid directly to
the State Universities Retirement System by the new
university benefit recipient, and (ii) all or part of the
balance of the cost of coverage may, at the option of the
employer, be paid to the State Universities Retirement
System by the employer from which the new university
benefit recipient retired. The State Universities
Retirement System shall promptly deposit all moneys
withheld by or paid to it under this subdivision (e)(2)
into the State Universities Health Insurance Security
Fund. These moneys shall not be considered assets of the
State Universities Retirement System.
(f) Financing. All revenues arising from the
administration of the health benefit program established under
this Section shall be deposited into the State Universities
Health Insurance Security Fund, which is hereby created as a
nonappropriated trust fund to be held outside the State
Treasury, with the State Treasurer as custodian. Any interest
earned on moneys in the State Universities Health Insurance
Security Fund shall be deposited into the Fund.
Moneys in the State Universities Health Insurance Security
Fund shall be used only to pay the costs of the health benefit
program established under this Section, including associated
administrative costs and the establishment of a program

HB6252 - 30 - LRB097 23389 JDS 72257 b
reserve. Beginning January 1, 2013, the Department of Central
Management Services may make expenditures from the State
Universities Health Insurance Security Fund for those costs.
(g) Contract for benefits. The Director shall by contract,
self-insurance, or otherwise make available the program of
health benefits for new university benefit recipients and their
new university dependent beneficiaries that is provided for in
this Section. The contract or other arrangement for the
provision of these health benefits shall be on terms deemed by
the Director to be in the best interest of the State of
Illinois and the new university benefit recipients based on,
but not limited to, such criteria as administrative cost,
service capabilities of the carrier or other contractor, and
the costs of the benefits.
(h) Continuation of program. It is the intention of the
General Assembly that the program of health benefits provided
under this Section be maintained on an ongoing, affordable
basis. The program of health benefits provided under this
Section may be amended by the State and is not intended to be a
pension or retirement benefit subject to protection under
Article XIII, Section 5 of the Illinois Constitution.
(i) Other health benefit plans. A health benefit plan
provided by an employer under the terms of a collective
bargaining agreement in effect on or prior to the effective
date of this amendatory Act of 97th General Assembly shall
continue in force according to the terms of that agreement,

HB6252 - 31 - LRB097 23389 JDS 72257 b
unless otherwise mutually agreed by the parties to that
agreement and the affected retiree. A new university benefit
recipient or new university dependent beneficiary whose
coverage under such a plan expires shall begin participating in
the program established under this Section without any
interruption or delay in coverage or limitation as to
pre-existing medical conditions.
This Act does not prohibit any employer from offering
additional health benefits for its retirees or their dependents
or survivors.
(5 ILCS 375/6.10B new)
Sec. 6.10B. State Universities Health Insurance Security
Fund.
(a) Beginning July 1, 2013, every active contributor of the
State Universities Retirement System (established under
Article 15 of the Illinois Pension Code) who (1) is employed on
a full-time basis by an employer listed under Section 15-106,
other than a community college district or an association of
community college boards, and (2) is not an employee as defined
in Section 3 of this Act shall make contributions toward the
cost of new university benefit recipient and new university
dependent beneficiary health benefits at the rate of 0.50% of
salary.
These contributions shall be deducted by the employer and
paid to the State Universities Retirement System as service

HB6252 - 32 - LRB097 23389 JDS 72257 b
agent for the Department of Central Management Services. The
System may use the same processes for collecting the
contributions required by this subsection that it uses to
collect the contributions received under Section 15-157 of the
Illinois Pension Code. An employer may agree to pick up or pay
the contributions required under this subsection; such
contributions shall be deemed to have been paid by the active
contributor.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (a) into the
State Universities Health Insurance Security Fund created in
Section 6.10A of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.10A of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(b) Beginning July 1, 2013, every employer listed in
Section 15-106 of the Illinois Pension Code, other than a
community college district or association of community college
boards, shall contribute toward the cost of the new university
benefit recipient and new university dependent beneficiary
health benefits provided under Section 6.10A of this Act an
amount equal to 0.50% of the salary paid to each active
contributor who is subject to subsection (a).

HB6252 - 33 - LRB097 23389 JDS 72257 b
These contributions shall be paid by the employer to the
State Universities Retirement System as service agent for the
Department of Central Management Services. The System may use
the same processes for collecting the contributions required by
this subsection that it uses to collect the contributions
received from those employers under Section 15-155 of the
Illinois Pension Code.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (b) into the
State Universities Health Insurance Security Fund created in
Section 6.10A of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.10A of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
The Department of Central Management Services, or any
successor agency designated to procure healthcare contracts
pursuant to this Act, is authorized to establish funds,
separate accounts provided by any bank or banks as defined by
the Illinois Banking Act, or separate accounts provided by any
savings and loan association or associations as defined by the
Illinois Savings and Loan Act of 1985 to be held by the
Director, outside the State treasury, for the purpose of
receiving the transfer of moneys from the State Universities

HB6252 - 34 - LRB097 23389 JDS 72257 b
Health Insurance Security Fund. The Department may promulgate
rules under the Illinois Administrative Procedure Act further
defining the methodology for the transfers. Any interest earned
by moneys in the funds or accounts shall inure to the State
Universities Health Insurance Security Fund. The transferred
moneys, and interest accrued thereon, shall be used exclusively
for transfers to administrative service organizations or their
financial institutions for payments of claims to claimants and
providers under the self-insurance health plan. The
transferred moneys, and interest accrued thereon, shall not be
used for any other purpose including, but not limited to,
reimbursement of administration fees due the administrative
service organization pursuant to its contract or contracts with
the Department.
(c) On or before November 15 of each year, the Board of
Trustees of the State Universities Retirement System shall
certify to the Governor, the Director of Central Management
Services, and the State Comptroller its estimate of the total
amount of contributions to be paid under subsection (a) of this
Section for the next fiscal year. Beginning in fiscal year
2015, the amount certified shall be decreased or increased each
year by the amount that the actual active employee
contributions either fell short of or exceeded the estimate
used by the Board in making the certification for the previous
fiscal year.
(d) Except where otherwise specified in this Section, the

HB6252 - 35 - LRB097 23389 JDS 72257 b
definitions that apply to Article 15 of the Illinois Pension
Code apply to this Section.
Section 10. The Illinois Pension Code is amended by
changing Sections 2-105, 2-124, 14-103.06, 14-131, 15-134,
15-155, 16-107, 16-158, 18-110, and 18-131 and by adding
Sections 1-167 and 1-168 as follows:
(40 ILCS 5/1-167 new)
Sec. 1-167. Tax-sheltered annuity for eligible employees
and teachers.
(a) Each employer under Article 15 that employs one or more
persons who are eligible to participate in a tax-sheltered
annuity retirement plan under Section 403(b) of the Internal
Revenue Code of 1986 shall establish one of those plans and
offer to each of its eligible employees who first becomes an
employee on or after the effective of this amendatory Act of
the 97th General Assembly the ability to participate in that
plan.
(b) Each employer under Article 16 that employs one or more
persons who are eligible to participate in a tax-sheltered
annuity retirement plan under Section 403(b) of the Internal
Revenue Code of 1986 shall establish one of those plans and
offer to each of its eligible teachers who first becomes a
teacher on or after the effective of this amendatory Act of the
97th General Assembly the ability to participate in that plan.

HB6252 - 36 - LRB097 23389 JDS 72257 b
(40 ILCS 5/1-168 new)
Sec. 1-168. Mandatory benefit election. Notwithstanding
any other provision of this Code, within 5 years after the
effective date of this amendatory Act of the 97th General
Assembly, each person who, on the effective date of this
amendatory Act of the 97th General Assembly, is a member or
participant of a retirement system established under Article 2,
14, 15, 16, or 18 of this Code shall elect either to
participate in or opt out of participation in the retirement
systems created under those Articles. A person who fails to
make the required election within the time period specified
shall be deemed to have opted out of participation in the
pension funds and retirement systems established under this
Code.
(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
Sec. 2-105. Member. "Member": Members of the General
Assembly of this State including persons who enter military
service while a member of the General Assembly and any person
serving as Governor, Lieutenant Governor, Secretary of State,
Treasurer, Comptroller, or Attorney General for the period of
service in such office.
Any person who has served for 10 or more years as Clerk or
Assistant Clerk of the House of Representatives, Secretary or
Assistant Secretary of the Senate, or any combination thereof,

HB6252 - 37 - LRB097 23389 JDS 72257 b
may elect to become a member of this system while thenceforth
engaged in such service by filing a written election with the
board. Any person so electing shall be deemed an active member
of the General Assembly for the purpose of validating and
transferring any service credits earned under any of the funds
and systems established under Articles 3 through 18 of this
Code.
Notwithstanding any other provision of this Code, on and
after the effective date of this amendatory Act of the 97th
General Assembly, a person may not become a member of the
retirement system created under this Article.
(Source: P.A. 85-1008.)
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with the
contributions of participants, interest earned on investments,
and other income will meet the cost of maintaining and
administering the System on a 90% funded basis in accordance
with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and
the prescribed rate of interest, using the formula in
subsection (c).

HB6252 - 38 - LRB097 23389 JDS 72257 b
(c) For State fiscal year 2014 and each fiscal year
thereafter, the minimum contribution to the System to be made
by the State for each fiscal year shall be 10.2% of the
applicable employee payroll.
For State fiscal years 2012 and 2013 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$4,157,000.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$5,220,300.
For each of State fiscal years 2008 through 2009, the State

HB6252 - 39 - LRB097 23389 JDS 72257 b
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010 is
$10,454,000 and shall be made from the proceeds of bonds sold
in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011
pursuant to Section 2-134 and shall be made from the proceeds
of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
the General Obligation Bond Act, less (i) the pro rata share of
bond sale expenses determined by the System's share of total
bond proceeds, (ii) any amounts received from the General
Revenue Fund in fiscal year 2011, and (iii) any reduction in
bond proceeds due to the issuance of discounted bonds, if
applicable.

HB6252 - 40 - LRB097 23389 JDS 72257 b
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 2-134, shall not
exceed an amount equal to (i) the amount of the required State
contribution that would have been calculated under this Section
for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds

HB6252 - 41 - LRB097 23389 JDS 72257 b
issued in fiscal year 2003 for the purposes of that Section
7.2, as determined and certified by the Comptroller, that is
the same as the System's portion of the total moneys
distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State
fiscal years 2008 through 2010, however, the amount referred to
in item (i) shall be increased, as a percentage of the
applicable employee payroll, in equal increments calculated
from the sum of the required State contribution for State
fiscal year 2007 plus the applicable portion of the State's
total debt service payments for fiscal year 2007 on the bonds
issued in fiscal year 2003 for the purposes of Section 7.2 of
the General Obligation Bond Act, so that, by State fiscal year
2011, the State is contributing at the rate otherwise required
under this Section.
(d) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.

HB6252 - 42 - LRB097 23389 JDS 72257 b
(e) For purposes of determining the required State
contribution to the system for a particular year, the actuarial
value of assets shall be assumed to earn a rate of return equal
to the system's actuarially assumed rate of return.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
7-13-12.)
(40 ILCS 5/14-103.06) (from Ch. 108 1/2, par. 14-103.06)
Sec. 14-103.06. Member. "Member": Any employee included in
the membership of the system; and any former employee who made
contributions to the system and has not received a refund and
who is not receiving a retirement annuity under this Article.
Notwithstanding any other provision of this Code, on and
after the effective date of this amendatory Act of the 97th
General Assembly, a person may not become a member of the
retirement system created under this Article.
(Source: P.A. 80-841.)
(40 ILCS 5/14-131)
Sec. 14-131. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering

HB6252 - 43 - LRB097 23389 JDS 72257 b
the System on a 90% funded basis in accordance with actuarial
recommendations.
For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that
are picked up or otherwise paid by the State or a department on
behalf of the employee.
(b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board,
using the formula in subsection (e).
The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that fiscal
year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act and
Section 1 of the State Pension Funds Continuing Appropriation
Act, if any, for the fiscal year ending on the June 30
immediately preceding the applicable November 15 certification
deadline), the estimated payroll (including all forms of
compensation) for personal services rendered by eligible
employees, and the recommendations of the actuary.
For the purposes of this Section and Section 14.1 of the
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may elect
to participate in the System but have not so elected, persons

HB6252 - 44 - LRB097 23389 JDS 72257 b
who are serving a qualifying period that is required for
participation, and annuitants employed by a department as
described in subdivision (a)(1) or (a)(2) of Section 14-111.
(c) Contributions shall be made by the several departments
for each pay period by warrants drawn by the State Comptroller
against their respective funds or appropriations based upon
vouchers stating the amount to be so contributed. These amounts
shall be based on the full rate certified by the Board under
Section 14-135.08 for that fiscal year. From the effective date
of this amendatory Act of the 93rd General Assembly through the
payment of the final payroll from fiscal year 2004
appropriations, the several departments shall not make
contributions for the remainder of fiscal year 2004 but shall
instead make payments as required under subsection (a-1) of
Section 14.1 of the State Finance Act. The several departments
shall resume those contributions at the commencement of fiscal
year 2005.
(c-1) Notwithstanding subsection (c) of this Section, for
fiscal years 2010, 2012, and 2013 only, contributions by the
several departments are not required to be made for General
Revenue Funds payrolls processed by the Comptroller. Payrolls
paid by the several departments from all other State funds must
continue to be processed pursuant to subsection (c) of this
Section.
(c-2) For State fiscal years 2010, 2012, and 2013 only, on
or as soon as possible after the 15th day of each month, the

HB6252 - 45 - LRB097 23389 JDS 72257 b
Board shall submit vouchers for payment of State contributions
to the System, in a total monthly amount of one-twelfth of the
fiscal year General Revenue Fund contribution as certified by
the System pursuant to Section 14-135.08 of the Illinois
Pension Code.
(d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid by
the State. From the effective date of this amendatory Act of
the 93rd General Assembly through the payment of the final
payroll from fiscal year 2004 appropriations, the department or
other employer shall not pay contributions for the remainder of
fiscal year 2004 but shall instead make payments as required
under subsection (a-1) of Section 14.1 of the State Finance
Act. The department or other employer shall resume payment of
contributions at the commencement of fiscal year 2005.
(e) For State fiscal year 2014 and each fiscal year
thereafter, the minimum contribution to the System to be made
by the State for each fiscal year shall be 10.2% of the
applicable employee payroll.
For State fiscal years 2012 and 2013 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to

HB6252 - 46 - LRB097 23389 JDS 72257 b
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section; except that (i) for State
fiscal year 1998, for all purposes of this Code and any other
law of this State, the certified percentage of the applicable
employee payroll shall be 5.052% for employees earning eligible
creditable service under Section 14-110 and 6.500% for all
other employees, notwithstanding any contrary certification
made under Section 14-135.08 before the effective date of this
amendatory Act of 1997, and (ii) in the following specified
State fiscal years, the State contribution to the System shall
not be less than the following indicated percentages of the
applicable employee payroll, even if the indicated percentage
will produce a State contribution in excess of the amount
otherwise required under this subsection and subsection (a):
9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
2002; 10.6% in FY 2003; and 10.8% in FY 2004.

HB6252 - 47 - LRB097 23389 JDS 72257 b
Notwithstanding any other provision of this Article, the
total required State contribution to the System for State
fiscal year 2006 is $203,783,900.
Notwithstanding any other provision of this Article, the
total required State contribution to the System for State
fiscal year 2007 is $344,164,400.
For each of State fiscal years 2008 through 2009, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the
total required State General Revenue Fund contribution for
State fiscal year 2010 is $723,703,100 and shall be made from
the proceeds of bonds sold in fiscal year 2010 pursuant to
Section 7.2 of the General Obligation Bond Act, less (i) the
pro rata share of bond sale expenses determined by the System's
share of total bond proceeds, (ii) any amounts received from
the General Revenue Fund in fiscal year 2010, and (iii) any
reduction in bond proceeds due to the issuance of discounted
bonds, if applicable.
Notwithstanding any other provision of this Article, the
total required State General Revenue Fund contribution for
State fiscal year 2011 is the amount recertified by the System
on or before April 1, 2011 pursuant to Section 14-135.08 and

HB6252 - 48 - LRB097 23389 JDS 72257 b
shall be made from the proceeds of bonds sold in fiscal year
2011 pursuant to Section 7.2 of the General Obligation Bond
Act, less (i) the pro rata share of bond sale expenses
determined by the System's share of total bond proceeds, (ii)
any amounts received from the General Revenue Fund in fiscal
year 2011, and (iii) any reduction in bond proceeds due to the
issuance of discounted bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated

HB6252 - 49 - LRB097 23389 JDS 72257 b
under this Section and certified under Section 14-135.08, shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued in fiscal year 2003 for the purposes of that Section
7.2, as determined and certified by the Comptroller, that is
the same as the System's portion of the total moneys
distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State
fiscal years 2008 through 2010, however, the amount referred to
in item (i) shall be increased, as a percentage of the
applicable employee payroll, in equal increments calculated
from the sum of the required State contribution for State
fiscal year 2007 plus the applicable portion of the State's
total debt service payments for fiscal year 2007 on the bonds
issued in fiscal year 2003 for the purposes of Section 7.2 of
the General Obligation Bond Act, so that, by State fiscal year
2011, the State is contributing at the rate otherwise required
under this Section.
(f) After the submission of all payments for eligible
employees from personal services line items in fiscal year 2004
have been made, the Comptroller shall provide to the System a
certification of the sum of all fiscal year 2004 expenditures

HB6252 - 50 - LRB097 23389 JDS 72257 b
for personal services that would have been covered by payments
to the System under this Section if the provisions of this
amendatory Act of the 93rd General Assembly had not been
enacted. Upon receipt of the certification, the System shall
determine the amount due to the System based on the full rate
certified by the Board under Section 14-135.08 for fiscal year
2004 in order to meet the State's obligation under this
Section. The System shall compare this amount due to the amount
received by the System in fiscal year 2004 through payments
under this Section and under Section 6z-61 of the State Finance
Act. If the amount due is more than the amount received, the
difference shall be termed the "Fiscal Year 2004 Shortfall" for
purposes of this Section, and the Fiscal Year 2004 Shortfall
shall be satisfied under Section 1.2 of the State Pension Funds
Continuing Appropriation Act. If the amount due is less than
the amount received, the difference shall be termed the "Fiscal
Year 2004 Overpayment" for purposes of this Section, and the
Fiscal Year 2004 Overpayment shall be repaid by the System to
the Pension Contribution Fund as soon as practicable after the
certification.
(g) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of

HB6252 - 51 - LRB097 23389 JDS 72257 b
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(h) For purposes of determining the required State
contribution to the System for a particular year, the actuarial
value of assets shall be assumed to earn a rate of return equal
to the System's actuarially assumed rate of return.
(i) After the submission of all payments for eligible
employees from personal services line items paid from the
General Revenue Fund in fiscal year 2010 have been made, the
Comptroller shall provide to the System a certification of the
sum of all fiscal year 2010 expenditures for personal services
that would have been covered by payments to the System under
this Section if the provisions of this amendatory Act of the
96th General Assembly had not been enacted. Upon receipt of the
certification, the System shall determine the amount due to the
System based on the full rate certified by the Board under
Section 14-135.08 for fiscal year 2010 in order to meet the
State's obligation under this Section. The System shall compare
this amount due to the amount received by the System in fiscal
year 2010 through payments under this Section. If the amount
due is more than the amount received, the difference shall be
termed the "Fiscal Year 2010 Shortfall" for purposes of this
Section, and the Fiscal Year 2010 Shortfall shall be satisfied

HB6252 - 52 - LRB097 23389 JDS 72257 b
under Section 1.2 of the State Pension Funds Continuing
Appropriation Act. If the amount due is less than the amount
received, the difference shall be termed the "Fiscal Year 2010
Overpayment" for purposes of this Section, and the Fiscal Year
2010 Overpayment shall be repaid by the System to the General
Revenue Fund as soon as practicable after the certification.
(j) After the submission of all payments for eligible
employees from personal services line items paid from the
General Revenue Fund in fiscal year 2011 have been made, the
Comptroller shall provide to the System a certification of the
sum of all fiscal year 2011 expenditures for personal services
that would have been covered by payments to the System under
this Section if the provisions of this amendatory Act of the
96th General Assembly had not been enacted. Upon receipt of the
certification, the System shall determine the amount due to the
System based on the full rate certified by the Board under
Section 14-135.08 for fiscal year 2011 in order to meet the
State's obligation under this Section. The System shall compare
this amount due to the amount received by the System in fiscal
year 2011 through payments under this Section. If the amount
due is more than the amount received, the difference shall be
termed the "Fiscal Year 2011 Shortfall" for purposes of this
Section, and the Fiscal Year 2011 Shortfall shall be satisfied
under Section 1.2 of the State Pension Funds Continuing
Appropriation Act. If the amount due is less than the amount
received, the difference shall be termed the "Fiscal Year 2011

HB6252 - 53 - LRB097 23389 JDS 72257 b
Overpayment" for purposes of this Section, and the Fiscal Year
2011 Overpayment shall be repaid by the System to the General
Revenue Fund as soon as practicable after the certification.
(k) For fiscal years 2012 and 2013 only, after the
submission of all payments for eligible employees from personal
services line items paid from the General Revenue Fund in the
fiscal year have been made, the Comptroller shall provide to
the System a certification of the sum of all expenditures in
the fiscal year for personal services. Upon receipt of the
certification, the System shall determine the amount due to the
System based on the full rate certified by the Board under
Section 14-135.08 for the fiscal year in order to meet the
State's obligation under this Section. The System shall compare
this amount due to the amount received by the System for the
fiscal year. If the amount due is more than the amount
received, the difference shall be termed the "Prior Fiscal Year
Shortfall" for purposes of this Section, and the Prior Fiscal
Year Shortfall shall be satisfied under Section 1.2 of the
State Pension Funds Continuing Appropriation Act. If the amount
due is less than the amount received, the difference shall be
termed the "Prior Fiscal Year Overpayment" for purposes of this
Section, and the Prior Fiscal Year Overpayment shall be repaid
by the System to the General Revenue Fund as soon as
practicable after the certification.
(Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09;
96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff.

HB6252 - 54 - LRB097 23389 JDS 72257 b
1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732,
eff. 6-30-12.)
(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Each person shall, as a condition of employment, become
a participant and be subject to this Article on the date that
he or she becomes an employee, makes an election to participate
in, or otherwise becomes a participant in one of the retirement
programs offered under this Article, whichever date is later.
An employee who becomes a participant shall continue to be
a participant until he or she becomes an annuitant, dies or
accepts a refund of contributions. For purposes of subsection
(f) of Section 1-160, the term "participant" shall include a
person receiving a retirement annuity.
(b) A person employed concurrently by 2 or more employers
is eligible to participate in the system on compensation
received from all employers.
(c) Notwithstanding any other provision of this Code, on
and after the effective date of this amendatory Act of the 97th
General Assembly, a person may not become a participant of the
retirement system created under this Article.
(Source: P.A. 96-1490, eff. 1-1-11.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.

HB6252 - 55 - LRB097 23389 JDS 72257 b
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with the other
employer contributions from trust, federal, and other funds,
employee contributions, income from investments, and other
income of this System, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State contributions
required for each fiscal year on the basis of the actuarial
tables and other assumptions adopted by the Board and the
recommendations of the actuary, using the formula in subsection
(a-1).
(a-1) For State fiscal year 2014 and each fiscal year
thereafter, the total annual contribution shall be an amount
determined by the System to be sufficient to bring the total
assets of the System up to 90% of the total actuarial
liabilities of the System by the end of State fiscal year 2045.
In making these determinations, the required total annual
contribution shall be calculated each year as a level
percentage of payroll over the years remaining to and including
fiscal year 2045 and shall be determined under the projected
unit credit actuarial cost method.
In State fiscal year 2014, employers shall contribute 50%
of the total annual contribution for that year, and the State
shall contribute 50% of the total annual contribution for that
year. In State fiscal year 2015 and each fiscal year

HB6252 - 56 - LRB097 23389 JDS 72257 b
thereafter, employers shall contribute the total annual
contribution or 101% of the previous year's employer
contribution, whichever is less, and the State shall contribute
the difference between the total annual contribution for that
year and the required employer contribution for that year.
For State fiscal years 2012 and 2013 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$166,641,900.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$252,064,100.

HB6252 - 57 - LRB097 23389 JDS 72257 b
For each of State fiscal years 2008 through 2009, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010 is
$702,514,000 and shall be made from the State Pensions Fund and
proceeds of bonds sold in fiscal year 2010 pursuant to Section
7.2 of the General Obligation Bond Act, less (i) the pro rata
share of bond sale expenses determined by the System's share of
total bond proceeds, (ii) any amounts received from the General
Revenue Fund in fiscal year 2010, (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011
pursuant to Section 15-165 and shall be made from the State
Pensions Fund and proceeds of bonds sold in fiscal year 2011
pursuant to Section 7.2 of the General Obligation Bond Act,
less (i) the pro rata share of bond sale expenses determined by
the System's share of total bond proceeds, (ii) any amounts
received from the General Revenue Fund in fiscal year 2011, and
(iii) any reduction in bond proceeds due to the issuance of

HB6252 - 58 - LRB097 23389 JDS 72257 b
discounted bonds, if applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 15-165, shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's

HB6252 - 59 - LRB097 23389 JDS 72257 b
total debt service payments for that fiscal year on the bonds
issued in fiscal year 2003 for the purposes of that Section
7.2, as determined and certified by the Comptroller, that is
the same as the System's portion of the total moneys
distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State
fiscal years 2008 through 2010, however, the amount referred to
in item (i) shall be increased, as a percentage of the
applicable employee payroll, in equal increments calculated
from the sum of the required State contribution for State
fiscal year 2007 plus the applicable portion of the State's
total debt service payments for fiscal year 2007 on the bonds
issued in fiscal year 2003 for the purposes of Section 7.2 of
the General Obligation Bond Act, so that, by State fiscal year
2011, the State is contributing at the rate otherwise required
under this Section.
(b) If an employee is paid from trust or federal funds, the
employer shall pay to the Board contributions from those funds
which are sufficient to cover the accruing normal costs on
behalf of the employee. However, universities having employees
who are compensated out of local auxiliary funds, income funds,
or service enterprise funds are not required to pay such
contributions on behalf of those employees. The local auxiliary
funds, income funds, and service enterprise funds of
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,

HB6252 - 60 - LRB097 23389 JDS 72257 b
foundations, and athletic associations which are affiliated
with the universities included as employers under this Article
and other employers which do not receive State appropriations
are considered to be trust funds for the purpose of this
Article.
(b-1) The City of Urbana and the City of Champaign shall
each make employer contributions to this System for their
respective firefighter employees who participate in this
System pursuant to subsection (h) of Section 15-107. The rate
of contributions to be made by those municipalities shall be
determined annually by the Board on the basis of the actuarial
assumptions adopted by the Board and the recommendations of the
actuary, and shall be expressed as a percentage of salary for
each such employee. The Board shall certify the rate to the
affected municipalities as soon as may be practical. The
employer contributions required under this subsection shall be
remitted by the municipality to the System at the same time and
in the same manner as employee contributions.
(c) Through State fiscal year 1995: The total employer
contribution shall be apportioned among the various funds of
the State and other employers, whether trust, federal, or other
funds, in accordance with actuarial procedures approved by the
Board. State of Illinois contributions for employers receiving
State appropriations for personal services shall be payable
from appropriations made to the employers or to the System. The
contributions for Class I community colleges covering earnings

HB6252 - 61 - LRB097 23389 JDS 72257 b
other than those paid from trust and federal funds, shall be
payable solely from appropriations to the Illinois Community
College Board or the System for employer contributions.
(d) Beginning in State fiscal year 1996, the required State
contributions to the System shall be appropriated directly to
the System and shall be payable through vouchers issued in
accordance with subsection (c) of Section 15-165, except as
provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to
the System upon proper certification by the System or by the
employer in accordance with the appropriation laws and this
Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System because
of the credits earned for service rendered by the participants
during the fiscal year and expenses of administering the
System, but shall not include the principal of or any
redemption premium or interest on any bonds issued by the Board
or any expenses incurred or deposits required in connection
therewith.
(g) If the amount of a participant's earnings for any
academic year used to determine the final rate of earnings,
determined on a full-time equivalent basis, exceeds the amount
of his or her earnings with the same employer for the previous
academic year, determined on a full-time equivalent basis, by
more than 6%, the participant's employer shall pay to the

HB6252 - 62 - LRB097 23389 JDS 72257 b
System, in addition to all other payments required under this
Section and in accordance with guidelines established by the
System, the present value of the increase in benefits resulting
from the portion of the increase in earnings that is in excess
of 6%. This present value shall be computed by the System on
the basis of the actuarial assumptions and tables used in the
most recent actuarial valuation of the System that is available
at the time of the computation. The System may require the
employer to provide any pertinent information or
documentation.
Whenever it determines that a payment is or may be required
under this subsection (g), the System shall calculate the
amount of the payment and bill the employer for that amount.
The bill shall specify the calculations used to determine the
amount due. If the employer disputes the amount of the bill, it
may, within 30 days after receipt of the bill, apply to the
System in writing for a recalculation. The application must
specify in detail the grounds of the dispute and, if the
employer asserts that the calculation is subject to subsection
(h) or (i) of this Section, must include an affidavit setting
forth and attesting to all facts within the employer's
knowledge that are pertinent to the applicability of subsection
(h) or (i). Upon receiving a timely application for
recalculation, the System shall review the application and, if
appropriate, recalculate the amount due.
The employer contributions required under this subsection

HB6252 - 63 - LRB097 23389 JDS 72257 b
(g) (f) may be paid in the form of a lump sum within 90 days
after receipt of the bill. If the employer contributions are
not paid within 90 days after receipt of the bill, then
interest will be charged at a rate equal to the System's annual
actuarially assumed rate of return on investment compounded
annually from the 91st day after receipt of the bill. Payments
must be concluded within 3 years after the employer's receipt
of the bill.
(h) This subsection (h) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to
participants under contracts or collective bargaining
agreements entered into, amended, or renewed before June 1,
2005.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases paid to a
participant at a time when the participant is 10 or more years
from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection
(g), the System shall exclude earnings increases resulting from
overload work, including a contract for summer teaching, or
overtime when the employer has certified to the System, and the

HB6252 - 64 - LRB097 23389 JDS 72257 b
System has approved the certification, that: (i) in the case of
overloads (A) the overload work is for the sole purpose of
academic instruction in excess of the standard number of
instruction hours for a full-time employee occurring during the
academic year that the overload is paid and (B) the earnings
increases are equal to or less than the rate of pay for
academic instruction computed using the participant's current
salary rate and work schedule; and (ii) in the case of
overtime, the overtime was necessary for the educational
mission.
When assessing payment for any amount due under subsection
(g), the System shall exclude any earnings increase resulting
from (i) a promotion for which the employee moves from one
classification to a higher classification under the State
Universities Civil Service System, (ii) a promotion in academic
rank for a tenured or tenure-track faculty position, or (iii) a
promotion that the Illinois Community College Board has
recommended in accordance with subsection (k) of this Section.
These earnings increases shall be excluded only if the
promotion is to a position that has existed and been filled by
a member for no less than one complete academic year and the
earnings increase as a result of the promotion is an increase
that results in an amount no greater than the average salary
paid for other similar positions.
(i) When assessing payment for any amount due under
subsection (g), the System shall exclude any salary increase

HB6252 - 65 - LRB097 23389 JDS 72257 b
described in subsection (h) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (g) of this Section.
(j) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for each
employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.
(k) The Illinois Community College Board shall adopt rules
for recommending lists of promotional positions submitted to
the Board by community colleges and for reviewing the

HB6252 - 66 - LRB097 23389 JDS 72257 b
promotional lists on an annual basis. When recommending
promotional lists, the Board shall consider the similarity of
the positions submitted to those positions recognized for State
universities by the State Universities Civil Service System.
The Illinois Community College Board shall file a copy of its
findings with the System. The System shall consider the
findings of the Illinois Community College Board when making
determinations under this Section. The System shall not exclude
any earnings increases resulting from a promotion when the
promotion was not submitted by a community college. Nothing in
this subsection (k) shall require any community college to
submit any information to the Community College Board.
(l) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(m) For purposes of determining the required State
contribution to the system for a particular year, the actuarial
value of assets shall be assumed to earn a rate of return equal

HB6252 - 67 - LRB097 23389 JDS 72257 b
to the system's actuarially assumed rate of return.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
7-13-12; revised 10-17-12.)
(40 ILCS 5/16-107) (from Ch. 108 1/2, par. 16-107)
Sec. 16-107. Member.
"Member": any teacher included in the membership of this
system during such membership.
Notwithstanding any other provision of this Code, on and
after the effective date of this amendatory Act of the 97th
General Assembly, a person may not become a member of the
retirement system created under this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
Sec. 16-158. Contributions by State and other employing
units.
(a) The State shall make contributions to the System by
means of appropriations from the Common School Fund and other
State funds of amounts which, together with other employer
contributions, employee contributions, investment income, and
other income, will be sufficient to meet the cost of
maintaining and administering the System on a 90% funded basis
in accordance with actuarial recommendations.
The Board shall determine the amount of State contributions

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required for each fiscal year on the basis of the actuarial
tables and other assumptions adopted by the Board and the
recommendations of the actuary, using the formula in subsection
(b-3).
(a-1) Annually, on or before November 15 until November 15,
2011, the Board shall certify to the Governor the amount of the
required State contribution for the coming fiscal year. The
certification under this subsection (a-1) shall include a copy
of the actuarial recommendations upon which it is based and
shall specifically identify the System's projected State
normal cost for that fiscal year.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking
into account the changes in required State contributions made
by this amendatory Act of the 94th General Assembly.
On or before April 1, 2011, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011, applying
the changes made by Public Act 96-889 to the System's assets

HB6252 - 69 - LRB097 23389 JDS 72257 b
and liabilities as of June 30, 2009 as though Public Act 96-889
was approved on that date.
(a-5) On or before November 1 of each year, beginning
November 1, 2012, the Board shall submit to the State Actuary,
the Governor, and the General Assembly a proposed certification
of the amount of the required State contribution to the System
for the next fiscal year, along with all of the actuarial
assumptions, calculations, and data upon which that proposed
certification is based. On or before January 1 of each year,
beginning January 1, 2013, the State Actuary shall issue a
preliminary report concerning the proposed certification and
identifying, if necessary, recommended changes in actuarial
assumptions that the Board must consider before finalizing its
certification of the required State contributions. On or before
January 15, 2013 and each January 15 thereafter, the Board
shall certify to the Governor and the General Assembly the
amount of the required State contribution for the next fiscal
year. The Board's certification must note any deviations from
the State Actuary's recommended changes, the reason or reasons
for not following the State Actuary's recommended changes, and
the fiscal impact of not following the State Actuary's
recommended changes on the required State contribution.
(b) Through State fiscal year 1995, the State contributions
shall be paid to the System in accordance with Section 18-7 of
the School Code.
(b-1) Beginning in State fiscal year 1996, on the 15th day

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of each month, or as soon thereafter as may be practicable, the
Board shall submit vouchers for payment of State contributions
to the System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a-1). From the effective date of this amendatory Act of the
93rd General Assembly through June 30, 2004, the Board shall
not submit vouchers for the remainder of fiscal year 2004 in
excess of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (a) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under Section
8.12 of the State Finance Act and Section 1 of the State
Pension Funds Continuing Appropriation Act) is less than the
amount lawfully vouchered under this subsection, the
difference shall be paid from the Common School Fund under the
continuing appropriation authority provided in Section 1.1 of
the State Pension Funds Continuing Appropriation Act.
(b-2) Allocations from the Common School Fund apportioned
to school districts not coming under this System shall not be
diminished or affected by the provisions of this Article.
(b-3) For State fiscal year 2014 and each fiscal year

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thereafter, the total annual contribution shall be an amount
determined by the System to be sufficient to bring the total
assets of the System up to 90% of the total actuarial
liabilities of the System by the end of State fiscal year 2045.
In making these determinations, the required total annual
contribution shall be calculated each year as a level
percentage of payroll over the years remaining to and including
fiscal year 2045 and shall be determined under the projected
unit credit actuarial cost method.
In State fiscal year 2014, employers shall contribute 50%
of the total annual contribution for that year, and the State
shall contribute 50% of the total annual contribution for that
year. In State fiscal year 2015 and each fiscal year
thereafter, employers shall contribute the total annual
contribution or 101% of the previous year's employer
contribution, whichever is less, and the State shall contribute
the difference between the total annual contribution for that
year and the required employer contribution for that year.
For State fiscal years 2012 and 2013 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and

HB6252 - 72 - LRB097 23389 JDS 72257 b
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section; except that in the
following specified State fiscal years, the State contribution
to the System shall not be less than the following indicated
percentages of the applicable employee payroll, even if the
indicated percentage will produce a State contribution in
excess of the amount otherwise required under this subsection
and subsection (a), and notwithstanding any contrary
certification made under subsection (a-1) before the effective
date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
2003; and 13.56% in FY 2004.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$534,627,700.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$738,014,500.
For each of State fiscal years 2008 through 2009, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments

HB6252 - 73 - LRB097 23389 JDS 72257 b
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010 is
$2,089,268,000 and shall be made from the proceeds of bonds
sold in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the Common School Fund
in fiscal year 2010, and (iii) any reduction in bond proceeds
due to the issuance of discounted bonds, if applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011
pursuant to subsection (a-1) of this Section and shall be made
from the proceeds of bonds sold in fiscal year 2011 pursuant to
Section 7.2 of the General Obligation Bond Act, less (i) the
pro rata share of bond sale expenses determined by the System's
share of total bond proceeds, (ii) any amounts received from
the Common School Fund in fiscal year 2011, and (iii) any
reduction in bond proceeds due to the issuance of discounted
bonds, if applicable. This amount shall include, in addition to
the amount certified by the System, an amount necessary to meet
employer contributions required by the State as an employer
under paragraph (e) of this Section, which may also be used by

HB6252 - 74 - LRB097 23389 JDS 72257 b
the System for contributions required by paragraph (a) of
Section 16-127.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under subsection (a-1), shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General

HB6252 - 75 - LRB097 23389 JDS 72257 b
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued in fiscal year 2003 for the purposes of that Section
7.2, as determined and certified by the Comptroller, that is
the same as the System's portion of the total moneys
distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State
fiscal years 2008 through 2010, however, the amount referred to
in item (i) shall be increased, as a percentage of the
applicable employee payroll, in equal increments calculated
from the sum of the required State contribution for State
fiscal year 2007 plus the applicable portion of the State's
total debt service payments for fiscal year 2007 on the bonds
issued in fiscal year 2003 for the purposes of Section 7.2 of
the General Obligation Bond Act, so that, by State fiscal year
2011, the State is contributing at the rate otherwise required
under this Section.
(c) Payment of the required State contributions and of all
pensions, retirement annuities, death benefits, refunds, and
other benefits granted under or assumed by this System, and all
expenses in connection with the administration and operation
thereof, are obligations of the State.
If members are paid from special trust or federal funds
which are administered by the employing unit, whether school
district or other unit, the employing unit shall pay to the
System from such funds the full accruing retirement costs based

HB6252 - 76 - LRB097 23389 JDS 72257 b
upon that service, as determined by the System. Employer
contributions, based on salary paid to members from federal
funds, may be forwarded by the distributing agency of the State
of Illinois to the System prior to allocation, in an amount
determined in accordance with guidelines established by such
agency and the System.
(d) Effective July 1, 1986, any employer of a teacher as
defined in paragraph (8) of Section 16-106 shall pay the
employer's normal cost of benefits based upon the teacher's
service, in addition to employee contributions, as determined
by the System. Such employer contributions shall be forwarded
monthly in accordance with guidelines established by the
System.
However, with respect to benefits granted under Section
16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
of Section 16-106, the employer's contribution shall be 12%
(rather than 20%) of the member's highest annual salary rate
for each year of creditable service granted, and the employer
shall also pay the required employee contribution on behalf of
the teacher. For the purposes of Sections 16-133.4 and
16-133.5, a teacher as defined in paragraph (8) of Section
16-106 who is serving in that capacity while on leave of
absence from another employer under this Article shall not be
considered an employee of the employer from which the teacher
is on leave.
(e) Beginning July 1, 1998, every employer of a teacher

HB6252 - 77 - LRB097 23389 JDS 72257 b
shall pay to the System an employer contribution computed as
follows:
(1) Beginning July 1, 1998 through June 30, 1999, the
employer contribution shall be equal to 0.3% of each
teacher's salary.
(2) Beginning July 1, 1999 and thereafter, the employer
contribution shall be equal to 0.58% of each teacher's
salary.
The school district or other employing unit may pay these
employer contributions out of any source of funding available
for that purpose and shall forward the contributions to the
System on the schedule established for the payment of member
contributions.
These employer contributions are intended to offset a
portion of the cost to the System of the increases in
retirement benefits resulting from this amendatory Act of 1998.
Each employer of teachers is entitled to a credit against
the contributions required under this subsection (e) with
respect to salaries paid to teachers for the period January 1,
2002 through June 30, 2003, equal to the amount paid by that
employer under subsection (a-5) of Section 6.6 of the State
Employees Group Insurance Act of 1971 with respect to salaries
paid to teachers for that period.
The additional 1% employee contribution required under
Section 16-152 by this amendatory Act of 1998 is the
responsibility of the teacher and not the teacher's employer,

HB6252 - 78 - LRB097 23389 JDS 72257 b
unless the employer agrees, through collective bargaining or
otherwise, to make the contribution on behalf of the teacher.
If an employer is required by a contract in effect on May
1, 1998 between the employer and an employee organization to
pay, on behalf of all its full-time employees covered by this
Article, all mandatory employee contributions required under
this Article, then the employer shall be excused from paying
the employer contribution required under this subsection (e)
for the balance of the term of that contract. The employer and
the employee organization shall jointly certify to the System
the existence of the contractual requirement, in such form as
the System may prescribe. This exclusion shall cease upon the
termination, extension, or renewal of the contract at any time
after May 1, 1998.
(f) If the amount of a teacher's salary for any school year
used to determine final average salary exceeds the member's
annual full-time salary rate with the same employer for the
previous school year by more than 6%, the teacher's employer
shall pay to the System, in addition to all other payments
required under this Section and in accordance with guidelines
established by the System, the present value of the increase in
benefits resulting from the portion of the increase in salary
that is in excess of 6%. This present value shall be computed
by the System on the basis of the actuarial assumptions and
tables used in the most recent actuarial valuation of the
System that is available at the time of the computation. If a

HB6252 - 79 - LRB097 23389 JDS 72257 b
teacher's salary for the 2005-2006 school year is used to
determine final average salary under this subsection (f), then
the changes made to this subsection (f) by Public Act 94-1057
shall apply in calculating whether the increase in his or her
salary is in excess of 6%. For the purposes of this Section,
change in employment under Section 10-21.12 of the School Code
on or after June 1, 2005 shall constitute a change in employer.
The System may require the employer to provide any pertinent
information or documentation. The changes made to this
subsection (f) by this amendatory Act of the 94th General
Assembly apply without regard to whether the teacher was in
service on or after its effective date.
Whenever it determines that a payment is or may be required
under this subsection, the System shall calculate the amount of
the payment and bill the employer for that amount. The bill
shall specify the calculations used to determine the amount
due. If the employer disputes the amount of the bill, it may,
within 30 days after receipt of the bill, apply to the System
in writing for a recalculation. The application must specify in
detail the grounds of the dispute and, if the employer asserts
that the calculation is subject to subsection (g) or (h) of
this Section, must include an affidavit setting forth and
attesting to all facts within the employer's knowledge that are
pertinent to the applicability of that subsection. Upon
receiving a timely application for recalculation, the System
shall review the application and, if appropriate, recalculate

HB6252 - 80 - LRB097 23389 JDS 72257 b
the amount due.
The employer contributions required under this subsection
(f) may be paid in the form of a lump sum within 90 days after
receipt of the bill. If the employer contributions are not paid
within 90 days after receipt of the bill, then interest will be
charged at a rate equal to the System's annual actuarially
assumed rate of return on investment compounded annually from
the 91st day after receipt of the bill. Payments must be
concluded within 3 years after the employer's receipt of the
bill.
(g) This subsection (g) applies only to payments made or
salary increases given on or after June 1, 2005 but before July
1, 2011. The changes made by Public Act 94-1057 shall not
require the System to refund any payments received before July
31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to teachers
under contracts or collective bargaining agreements entered
into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases paid to a
teacher at a time when the teacher is 10 or more years from
retirement eligibility under Section 16-132 or 16-133.2.
When assessing payment for any amount due under subsection
(f), the System shall exclude salary increases resulting from
overload work, including summer school, when the school

HB6252 - 81 - LRB097 23389 JDS 72257 b
district has certified to the System, and the System has
approved the certification, that (i) the overload work is for
the sole purpose of classroom instruction in excess of the
standard number of classes for a full-time teacher in a school
district during a school year and (ii) the salary increases are
equal to or less than the rate of pay for classroom instruction
computed on the teacher's current salary and work schedule.
When assessing payment for any amount due under subsection
(f), the System shall exclude a salary increase resulting from
a promotion (i) for which the employee is required to hold a
certificate or supervisory endorsement issued by the State
Teacher Certification Board that is a different certification
or supervisory endorsement than is required for the teacher's
previous position and (ii) to a position that has existed and
been filled by a member for no less than one complete academic
year and the salary increase from the promotion is an increase
that results in an amount no greater than the lesser of the
average salary paid for other similar positions in the district
requiring the same certification or the amount stipulated in
the collective bargaining agreement for a similar position
requiring the same certification.
When assessing payment for any amount due under subsection
(f), the System shall exclude any payment to the teacher from
the State of Illinois or the State Board of Education over
which the employer does not have discretion, notwithstanding
that the payment is included in the computation of final

HB6252 - 82 - LRB097 23389 JDS 72257 b
average salary.
(h) When assessing payment for any amount due under
subsection (f), the System shall exclude any salary increase
described in subsection (g) of this Section given on or after
July 1, 2011 but before July 1, 2014 under a contract or
collective bargaining agreement entered into, amended, or
renewed on or after June 1, 2005 but before July 1, 2011.
Notwithstanding any other provision of this Section, any
payments made or salary increases given after June 30, 2014
shall be used in assessing payment for any amount due under
subsection (f) of this Section.
(i) The System shall prepare a report and file copies of
the report with the Governor and the General Assembly by
January 1, 2007 that contains all of the following information:
(1) The number of recalculations required by the
changes made to this Section by Public Act 94-1057 for each
employer.
(2) The dollar amount by which each employer's
contribution to the System was changed due to
recalculations required by Public Act 94-1057.
(3) The total amount the System received from each
employer as a result of the changes made to this Section by
Public Act 94-4.
(4) The increase in the required State contribution
resulting from the changes made to this Section by Public
Act 94-1057.

HB6252 - 83 - LRB097 23389 JDS 72257 b
(j) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(k) For purposes of determining the required State
contribution to the system for a particular year, the actuarial
value of assets shall be assumed to earn a rate of return equal
to the system's actuarially assumed rate of return.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
6-18-12; 97-813, eff. 7-13-12.)
(40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
Sec. 18-110. Participant. "Participant": Any judge
participating in this system as specified in Sections 18-120
and 18-121.
Notwithstanding any other provision of this Code, on and
after the effective date of this amendatory Act of the 97th
General Assembly, a person may not become a participant of the

HB6252 - 84 - LRB097 23389 JDS 72257 b
retirement system created under this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
Sec. 18-131. Financing; employer contributions.
(a) The State of Illinois shall make contributions to this
System by appropriations of the amounts which, together with
the contributions of participants, net earnings on
investments, and other income, will meet the costs of
maintaining and administering this System on a 90% funded basis
in accordance with actuarial recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and
the prescribed rate of interest, using the formula in
subsection (c).
(c) For State fiscal year 2014 and each fiscal year
thereafter, the minimum contribution to the System to be made
by the State for each fiscal year shall be 10.2% of the
applicable employee payroll.
For State fiscal years 2012 and 2013 through 2045, the
minimum contribution to the System to be made by the State for
each fiscal year shall be an amount determined by the System to
be sufficient to bring the total assets of the System up to 90%
of the total actuarial liabilities of the System by the end of
State fiscal year 2045. In making these determinations, the

HB6252 - 85 - LRB097 23389 JDS 72257 b
required State contribution shall be calculated each year as a
level percentage of payroll over the years remaining to and
including fiscal year 2045 and shall be determined under the
projected unit credit actuarial cost method.
For State fiscal years 1996 through 2005, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
so that by State fiscal year 2011, the State is contributing at
the rate required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2006 is
$29,189,400.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2007 is
$35,236,800.
For each of State fiscal years 2008 through 2009, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual increments
from the required State contribution for State fiscal year
2007, so that by State fiscal year 2011, the State is
contributing at the rate otherwise required under this Section.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2010 is
$78,832,000 and shall be made from the proceeds of bonds sold
in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale

HB6252 - 86 - LRB097 23389 JDS 72257 b
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011
pursuant to Section 18-140 and shall be made from the proceeds
of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
the General Obligation Bond Act, less (i) the pro rata share of
bond sale expenses determined by the System's share of total
bond proceeds, (ii) any amounts received from the General
Revenue Fund in fiscal year 2011, and (iii) any reduction in
bond proceeds due to the issuance of discounted bonds, if
applicable.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of
the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the

HB6252 - 87 - LRB097 23389 JDS 72257 b
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 18-140, shall
not exceed an amount equal to (i) the amount of the required
State contribution that would have been calculated under this
Section for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued in fiscal year 2003 for the purposes of that Section
7.2, as determined and certified by the Comptroller, that is
the same as the System's portion of the total moneys
distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State
fiscal years 2008 through 2010, however, the amount referred to
in item (i) shall be increased, as a percentage of the
applicable employee payroll, in equal increments calculated
from the sum of the required State contribution for State
fiscal year 2007 plus the applicable portion of the State's

HB6252 - 88 - LRB097 23389 JDS 72257 b
total debt service payments for fiscal year 2007 on the bonds
issued in fiscal year 2003 for the purposes of Section 7.2 of
the General Obligation Bond Act, so that, by State fiscal year
2011, the State is contributing at the rate otherwise required
under this Section.
(d) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(e) For purposes of determining the required State
contribution to the system for a particular year, the actuarial
value of assets shall be assumed to earn a rate of return equal
to the system's actuarially assumed rate of return.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
7-13-12.)
Section 15. The State Pension Funds Continuing
Appropriation Act is amended by changing Sections 1.3 and 1.4

HB6252 - 89 - LRB097 23389 JDS 72257 b
as follows:
(40 ILCS 15/1.3)
Sec. 1.3. Appropriations for the Teacher Health Insurance
Security Fund. Beginning in State fiscal year 1996 and ending
with the close of State fiscal year 2013, there is hereby
appropriated, on a continuing annual basis, from the General
Revenue Fund to the State Comptroller for deposit into the
Teacher Health Insurance Security Fund, an amount equal to the
amount certified by the Board of Trustees of the Teachers'
Retirement System of Illinois under subsection (c) of Section
6.6 of the State Employees Group Insurance Act of 1971 as the
estimated total amount of contributions to be paid under
subsection (a) of that Section 6.6 in that fiscal year.
In addition to any other amounts that may be appropriated
for this purpose, in State fiscal years 2005 through 2007,
there is hereby appropriated, on a continuing annual basis,
from the General Revenue Fund to the State Comptroller for
deposit into the Teacher Health Insurance Security Fund, an
amount equal to $13,000,000 in each fiscal year.
The moneys appropriated under this Section 1.3 shall be
deposited into the Teacher Health Insurance Security Fund and
used only for the purposes authorized in Section 6.5 of the
State Employees Group Insurance Act of 1971.
(Source: P.A. 93-679, eff. 6-30-04.)

HB6252 - 90 - LRB097 23389 JDS 72257 b
(40 ILCS 15/1.4)
Sec. 1.4. Appropriations for the Community College Health
Insurance Security Fund. Beginning in State fiscal year 1999
and ending with the close of State fiscal year 2013, there is
hereby appropriated, on a continuing annual basis, from the
General Revenue Fund to the State Comptroller for deposit into
the Community College Health Insurance Security Fund, an amount
equal to the amount certified by the Board of Trustees of the
State Universities Retirement System under subsection (c) of
Section 6.10 of the State Employees Group Insurance Act of 1971
as the estimated total amount of contributions to be paid under
subsection (a) of that Section 6.10 in that fiscal year. The
moneys appropriated under this Section 1.4 shall be deposited
into the Community College Health Insurance Security Fund and
used only for the purposes authorized in Section 6.9 of the
State Employees Group Insurance Act of 1971.
(Source: P.A. 90-497, eff. 8-18-97.)
Section 90. The State Mandates Act is amended by adding
Section 8.36 as follows:
(30 ILCS 805/8.36 new)
Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.

HB6252 - 91 - LRB097 23389 JDS 72257 b
Section 99. Effective date. This Act takes effect upon
becoming law.
HB6252 - 92 - LRB097 23389 JDS 72257 b
INDEX
Statutes amended in order of appearance