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| Public Act 102-0525
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| SB1646 Enrolled | LRB102 15392 RPS 20755 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by |
changing Sections 16-127 and 16-158 as follows:
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(40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
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Sec. 16-127. Computation of creditable service.
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(a) Each member shall receive regular credit for all
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service as a teacher from the date membership begins, for |
which
satisfactory evidence is supplied and all contributions |
have been paid.
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(b) The following periods of service shall earn optional |
credit and
each member shall receive credit for all such |
service for which
satisfactory evidence is supplied and all |
contributions have been paid as
of the date specified:
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(1) Prior service as a teacher.
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(2) Service in a capacity essentially similar or |
equivalent to that of a
teacher, in the public common |
schools in school districts in this State not
included |
within the provisions of this System, or of any other |
State,
territory, dependency or possession of the United |
States, or in schools
operated by or under the auspices of |
the United States, or under the
auspices of any agency or |
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department of any other State, and service during
any |
period of professional speech correction or special |
education
experience for a public agency within this State |
or any other State,
territory, dependency or possession of |
the United States, and service prior
to February 1, 1951 |
as a recreation worker for the Illinois Department of
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Public Safety, for a period not exceeding the lesser of |
2/5 of the total
creditable service of the member or 10 |
years. The maximum service of 10
years which is allowable |
under this paragraph shall be reduced by the
service |
credit which is validated by other retirement systems |
under
paragraph (i) of Section 15-113 and paragraph 1 of |
Section 17-133. Credit
granted under this paragraph may |
not be used in determination of a
retirement annuity or |
disability benefits unless the member has at least 5
years |
of creditable service earned subsequent to this employment |
with one
or more of the following systems: Teachers' |
Retirement System of the State
of Illinois, State |
Universities Retirement System, and the Public School
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Teachers' Pension and Retirement Fund of Chicago. Whenever |
such service
credit exceeds the maximum allowed for all |
purposes of this Article, the
first service rendered in |
point of time shall be considered.
The changes to this |
subdivision (b)(2) made by Public Act 86-272 shall
apply |
not only to persons who on or after its effective date |
(August 23,
1989) are in service as a teacher under the |
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System, but also to persons
whose status as such a teacher |
terminated prior to such effective date,
whether or not |
such person is an annuitant on that date.
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(3) Any periods immediately following teaching |
service, under this
System or under Article 17, (or |
immediately following service prior to
February 1, 1951 as |
a recreation worker for the Illinois Department of
Public |
Safety) spent in active service with the military forces |
of the
United States; periods spent in educational |
programs that prepare for
return to teaching sponsored by |
the federal government following such
active military |
service; if a teacher returns to teaching service within
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one calendar year after discharge or after the completion |
of the
educational program, a further period, not |
exceeding one calendar year,
between time spent in |
military service or in such educational programs and
the |
return to employment as a teacher under this System; and a |
period of up
to 2 years of active military service not |
immediately following employment
as a teacher.
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The changes to this Section and Section 16-128 |
relating to military
service made by P.A. 87-794 shall |
apply not only to persons who on or after its
effective |
date are in service as a teacher under the System, but also |
to
persons whose status as a teacher terminated prior to |
that date, whether or not
the person is an annuitant on |
that date. In the case of an annuitant who
applies for |
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credit allowable under this Section for a period of |
military
service that did not immediately follow |
employment, and who has made the
required contributions |
for such credit, the annuity shall be recalculated to
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include the additional service credit, with the increase |
taking effect on the
date the System received written |
notification of the annuitant's intent to
purchase the |
credit, if payment of all the required contributions is |
made
within 60 days of such notice, or else on the first |
annuity payment date
following the date of payment of the |
required contributions. In calculating
the automatic |
annual increase for an annuity that has been recalculated |
under
this Section, the increase attributable to the |
additional service allowable
under P.A. 87-794 shall be |
included in the calculation of automatic annual
increases |
accruing after the effective date of the recalculation.
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Credit for military service shall be determined as |
follows: if entry
occurs during the months of July, |
August, or September and the member was a
teacher at the |
end of the immediately preceding school term, credit shall
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be granted from July 1 of the year in which he or she |
entered service; if
entry occurs during the school term |
and the teacher was in teaching service
at the beginning |
of the school term, credit shall be granted from July 1 of
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such year. In all other cases where credit for military |
service is allowed,
credit shall be granted from the date |
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of entry into the service.
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The total period of military service for which credit |
is granted shall
not exceed 5 years for any member unless |
the service: (A) is validated
before July 1, 1964, and (B) |
does not extend beyond July 1, 1963. Credit
for military |
service shall be granted under this Section only if not |
more
than 5 years of the military service for which credit |
is granted under this
Section is used by the member to |
qualify for a military retirement
allotment from any |
branch of the armed forces of the United States. The
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changes to this subdivision (b)(3) made by Public Act |
86-272 shall apply
not only to persons who on or after its |
effective date (August 23, 1989)
are in service as a |
teacher under the System, but also to persons whose
status |
as such a teacher terminated prior to such effective date, |
whether
or not such person is an annuitant on that date.
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(4) Any periods served as a member of the General |
Assembly.
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(5)(i) Any periods for which a teacher, as defined in |
Section
16-106, is granted a leave of absence, provided he |
or she returns to teaching
service creditable under this |
System or the State Universities Retirement
System |
following the leave; (ii) periods during which a teacher |
is
involuntarily laid off from teaching, provided he or |
she returns to teaching
following the lay-off; (iii) |
periods prior to July 1, 1983 during which
a teacher |
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ceased covered employment due to pregnancy, provided that |
the teacher
returned to teaching service creditable under |
this System or the State
Universities Retirement System |
following the pregnancy and submits evidence
satisfactory |
to the Board documenting that the employment ceased due to
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pregnancy; and (iv) periods prior to July 1, 1983 during |
which a teacher
ceased covered employment for the purpose |
of adopting an infant under 3 years
of age or caring for a |
newly adopted infant under 3 years of age, provided that
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the teacher returned to teaching service creditable under |
this System or the
State Universities Retirement System |
following the adoption and submits
evidence satisfactory |
to the Board documenting that the employment ceased for
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the purpose of adopting an infant under 3 years of age or |
caring for a newly
adopted infant under 3 years of age. |
However, total credit under this
paragraph (5) may not |
exceed 3 years.
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Any qualified member or annuitant may apply for credit |
under item (iii)
or (iv) of this paragraph (5) without |
regard to whether service was
terminated before the |
effective date of this amendatory Act of 1997. In the case |
of an annuitant who establishes credit under item (iii)
or |
(iv), the annuity shall be recalculated to include the |
additional
service credit. The increase in annuity shall |
take effect on the date the
System receives written |
notification of the annuitant's intent to purchase the
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credit, if the required evidence is submitted and the |
required contribution
paid within 60 days of that |
notification, otherwise on the first annuity
payment date |
following the System's receipt of the required evidence |
and
contribution. The increase in an annuity recalculated |
under this provision
shall be included in the calculation |
of automatic annual increases in the
annuity accruing |
after the effective date of the recalculation.
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Optional credit may be purchased under this subsection |
(b)(5) for
periods during which a teacher has been granted |
a leave of absence pursuant
to Section 24-13 of the School |
Code. A teacher whose service under this
Article |
terminated prior to the effective date of P.A. 86-1488 |
shall be
eligible to purchase such optional credit. If a |
teacher who purchases this
optional credit is already |
receiving a retirement annuity under this Article,
the |
annuity shall be recalculated as if the annuitant had |
applied for the leave
of absence credit at the time of |
retirement. The difference between the
entitled annuity |
and the actual annuity shall be credited to the purchase |
of
the optional credit. The remainder of the purchase cost |
of the optional credit
shall be paid on or before April 1, |
1992.
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The change in this paragraph made by Public Act 86-273 |
shall
be applicable to teachers who retire after June 1, |
1989, as well as to
teachers who are in service on that |
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date.
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(6) Any days of unused and uncompensated accumulated |
sick leave earned
by a teacher. The service credit granted |
under this paragraph shall be the
ratio of the number of |
unused and uncompensated accumulated sick leave days
to |
170 days, subject to a maximum of 2 years of service
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credit. Prior to the member's retirement, each former |
employer shall
certify to the System the number of unused |
and uncompensated accumulated
sick leave days credited to |
the member at the time of termination of service.
The |
period of unused sick leave shall not be considered in |
determining
the effective date of retirement. A member is |
not required to make
contributions in order to obtain |
service credit for unused sick leave.
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Credit for sick leave shall, at retirement, be granted |
by the System
for any retiring regional or assistant |
regional superintendent of schools
at the rate of 6 days |
per year of creditable service or portion thereof
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established while serving as such superintendent or |
assistant
superintendent.
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(7) Periods prior to February 1, 1987 served as an |
employee of the
Illinois Mathematics and Science Academy |
for which credit has not been
terminated under Section |
15-113.9 of this Code.
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(8) Service as a substitute teacher for work performed
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prior to July 1, 1990.
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(9) Service as a part-time teacher for work performed
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prior to July 1, 1990.
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(10) Up to 2 years of employment with Southern |
Illinois University -
Carbondale from September 1, 1959 to |
August 31, 1961, or with Governors
State University from |
September 1, 1972 to August 31, 1974, for which the
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teacher has no credit under Article 15. To receive credit |
under this item
(10), a teacher must apply in writing to |
the Board and pay the required
contributions before May 1, |
1993 and have at least 12 years of service
credit under |
this Article.
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(b-1) A member may establish optional credit for up to 2 |
years of service
as a teacher or administrator employed by a |
private school recognized by the
Illinois State Board of |
Education, provided that the teacher (i) was certified
under |
the law governing the certification of teachers at the time |
the service
was rendered, (ii) applies in writing on or before |
June 30, 2023 on or after August 1, 2009 and on or before
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August 1, 2012, (iii) supplies satisfactory evidence of the |
employment, (iv)
completes at least 10 years of contributing |
service as a teacher as defined in
Section 16-106, and (v) pays |
the contribution required in subsection (d-5) of
Section |
16-128. The member may apply for credit under this subsection |
and pay
the required contribution before completing the 10 |
years of contributing
service required under item (iv), but |
the credit may not be used until the
item (iv) contributing |
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service requirement has been met.
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(c) The service credits specified in this Section shall be |
granted only
if: (1) such service credits are not used for |
credit in any other statutory
tax-supported public employee |
retirement system other than the federal Social
Security |
program; and (2) the member makes the required contributions |
as
specified in Section 16-128. Except as provided in |
subsection (b-1) of
this Section, the service credit shall be |
effective as of the date the
required contributions are |
completed.
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Any service credits granted under this Section shall |
terminate upon
cessation of membership for any cause.
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Credit may not be granted under this Section covering any |
period for
which an age retirement or disability retirement |
allowance has been paid.
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Credit may not be granted under this Section for service |
as an employee of an entity that provides substitute teaching |
services under Section 2-3.173 of the School Code and is not a |
school district. |
(Source: P.A. 100-813, eff. 8-13-18.)
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(40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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Sec. 16-158. Contributions by State and other employing |
units.
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(a) The State shall make contributions to the System by |
means of
appropriations from the Common School Fund and other |
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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
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maintaining and administering the System on a 90% funded basis |
in accordance
with actuarial recommendations.
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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 (b-3).
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(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.
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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
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Obligation Bond Act.
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On or before July 1, 2005, the Board shall recalculate and |
recertify
to the Governor the amount of the required State
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contribution to the System for State fiscal year 2006, taking |
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into account the changes in required State contributions made |
by Public Act 94-4.
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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 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 |
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recommended changes, and the fiscal impact of not following |
the State Actuary's recommended changes on the required State |
contribution. |
(a-10) By November 1, 2017, the Board shall recalculate |
and recertify to the State Actuary, the Governor, and the |
General Assembly the amount of the State contribution to the |
System for State fiscal year 2018, taking into account the |
changes in required State contributions made by Public Act |
100-23. The State Actuary shall review the assumptions and |
valuations underlying the Board's revised certification and |
issue a preliminary report concerning the proposed |
recertification and identifying, if necessary, recommended |
changes in actuarial assumptions that the Board must consider |
before finalizing its certification of the required State |
contributions. The Board's final 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. |
(a-15) On or after June 15, 2019, but no later than June |
30, 2019, the Board shall recalculate and recertify to the |
Governor and the General Assembly the amount of the State |
contribution to the System for State fiscal year 2019, taking |
into account the changes in required State contributions made |
by Public Act 100-587. The recalculation shall be made using |
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assumptions adopted by the Board for the original fiscal year |
2019 certification. The monthly voucher for the 12th month of |
fiscal year 2019 shall be paid by the Comptroller after the |
recertification required pursuant to this subsection is |
submitted to the Governor, Comptroller, and General Assembly. |
The recertification submitted to the General Assembly shall be |
filed with the Clerk of the House of Representatives and the |
Secretary of the Senate in electronic form only, in the manner |
that the Clerk and the Secretary shall direct. |
(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.
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(b-1) Beginning in State fiscal year 1996, on the 15th day |
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 March 5, 2004 (the
effective date of Public Act |
93-665)
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.
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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.
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(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.
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(b-3) For State fiscal years 2012 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
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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.
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For each of State fiscal years 2018, 2019, and 2020, the |
State shall make an additional contribution to the System |
equal to 2% of the total payroll of each employee who is deemed |
to have elected the benefits under Section 1-161 or who has |
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made the election under subsection (c) of Section 1-161. |
A change in an actuarial or investment assumption that |
increases or
decreases the required State contribution and |
first
applies in State fiscal year 2018 or thereafter shall be
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implemented in equal annual amounts over a 5-year period
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beginning in the State fiscal year in which the actuarial
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change first applies to the required State contribution. |
A change in an actuarial or investment assumption that |
increases or
decreases the required State contribution and |
first
applied to the State contribution in fiscal year 2014, |
2015, 2016, or 2017 shall be
implemented: |
(i) as already applied in State fiscal years before |
2018; and |
(ii) in the portion of the 5-year period beginning in |
the State fiscal year in which the actuarial
change first |
applied that occurs in State fiscal year 2018 or |
thereafter, by calculating the change in equal annual |
amounts over that 5-year period and then implementing it |
at the resulting annual rate in each of the remaining |
fiscal years in that 5-year period. |
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 |
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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 May |
27, 1998 (the effective date of Public Act 90-582):
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.
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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 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.
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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 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 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.
|
(b-4) Beginning in fiscal year 2018, each employer under |
this Article shall pay to the System a required contribution |
determined as a percentage of projected payroll and sufficient |
to produce an annual amount equal to: |
(i) for each of fiscal years 2018, 2019, and 2020, the |
defined benefit normal cost of the defined benefit plan, |
less the employee contribution, for each employee of that |
employer who has elected or who is deemed to have elected |
the benefits under Section 1-161 or who has made the |
election under subsection (b) of Section 1-161; for fiscal |
year 2021 and each fiscal year thereafter, the defined |
benefit normal cost of the defined benefit plan, less the |
employee contribution, plus 2%, for each employee of that |
employer who has elected or who is deemed to have elected |
the benefits under Section 1-161 or who has made the |
|
election under subsection (b) of Section 1-161; plus |
(ii) the amount required for that fiscal year to |
amortize any unfunded actuarial accrued liability |
associated with the present value of liabilities |
attributable to the employer's account under Section |
16-158.3, determined
as a level percentage of payroll over |
a 30-year rolling amortization period. |
In determining contributions required under item (i) of |
this subsection, the System shall determine an aggregate rate |
for all employers, expressed as a percentage of projected |
payroll. |
In determining the contributions required under item (ii) |
of this subsection, the amount 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 contributions required under this subsection (b-4) |
shall be paid by an employer concurrently with that employer's |
payroll payment period. The State, as the actual employer of |
an employee, shall make the required contributions under this |
subsection. |
(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 upon that
service, which, beginning July 1, 2017, shall |
be at a rate, expressed as a percentage of salary, equal to the |
total employer's normal cost, expressed as a percentage of |
payroll, 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. Any contribution for fiscal year 2015 collected as a |
result of the change made by Public Act 98-674 shall be |
considered a State contribution under subsection (b-3) of this |
Section.
|
(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
|
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 Public Act 90-582.
|
|
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 Public Act 90-582
is the responsibility of |
the teacher and not the
teacher's employer, 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 June 4, 2018 (Public Act 100-587) 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 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 Public Act 94-1111 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), (g-5), 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 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.
|
(f-1) (Blank). June 4, 2018 (Public Act 100-587) |
(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 |
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 |
average salary.
|
(g-5) When assessing payment for any amount due under |
subsection (f), the System shall exclude salary increases |
resulting from teaching summer school on or after May 1, 2021 |
and before September 15, 2022. |
(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.
|
(i-5) For school years beginning on or after July 1, 2017, |
if the amount of a participant's salary for any school year |
exceeds the amount of the salary set for the Governor, the |
participant'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, an |
amount determined by the System to be equal to the employer |
normal cost, as established by the System and expressed as a |
|
total percentage of payroll, multiplied by the amount of |
salary in excess of the amount of the salary set for the |
Governor. This amount 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, 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. 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 |
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. |
(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. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; |
100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff. |
8-14-18; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; revised |
8-13-19.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|
