Bill Text: IL SB1687 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the State Universities Article of the Illinois Pension Code. Delays by one year the implementation of the return to service provisions added by Public Act 97-968. Authorizes an employer to notify the System that an annuitant is returning to service by providing the annuitant's rate of compensation and anticipated length of employment (now, an employer may give notice in that manner only if there is not a written employment contract). Effective immediately.

Sponsorship: Moderate Partisan Bill (Democrat 5-1)

Status: (Failed) 2015-01-13 - Session Sine Die [SB1687 Detail]

Download: Illinois-2013-SB1687-Amended.html

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Rep. Elaine Nekritz

Filed: 5/30/2013

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AMENDMENT TO SENATE BILL 1687
AMENDMENT NO. ______. Amend Senate Bill 1687, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 5. The Illinois Procurement Code is amended by
changing Section 1-13 as follows:
(30 ILCS 500/1-13)
(Section scheduled to be repealed on December 31, 2014)
Sec. 1-13. Applicability to public institutions of higher
education.
(a) This Code shall apply to public institutions of higher
education, regardless of the source of the funds with which
contracts are paid, except as provided in this Section.
(b) Except as provided in this Section, this Code shall not
apply to procurements made by or on behalf of public
institutions of higher education for any of the following:

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(1) Memberships in professional, academic, research,
or athletic organizations on behalf of a public institution
of higher education, an employee of a public institution of
higher education, or a student at a public institution of
higher education.
(2) Procurement expenditures for specific individual
events or activities paid for exclusively by revenues
generated by the event or activity, gifts or donations for
the event or activity, private grants, or any combination
thereof.
(3) Procurement expenditures for events or activities
for which the use of specific vendors is mandated or
identified by the sponsor of the event or activity,
provided that the sponsor is providing a majority of the
funding for the event or activity.
(4) Procurement expenditures necessary to provide for
specific athletic, artistic, or musical services,
performances, events, or productions held at a venue
operated by or for a public institution of higher
education.
(5) Procurement expenditures for periodicals,
subscriptions, database licenses, books and other
publications, and books procured for use by a university
library or academic department, except for expenditures
related to procuring textbooks for student use or materials
for resale or rental.

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(6) Procurement expenditures for placement of students
in externships, field experiences, and rotations.
(7) Contracts with a foreign entity necessary for
research or educational activities, provided that the
foreign entity either does not maintain an office in the
United States or is the sole source of the service or
product.
(8) Procurements of FDA-regulated goods, products, and
services necessary for the delivery of care and treatment
at medical, dental, or veterinary teaching facilities
utilized by the University of Illinois or Southern Illinois
University.
(9) Contracts for programming and broadcast license
rights for university-operated radio and television
stations.
(10) Procurement expenditures designated in a grant
budget approved by the grantor.
Notice of each contract entered into by a public institution of
higher education that is related to the procurement of goods
and services identified in items (1) through (10) (5) of this
subsection shall be published in the Procurement Bulletin
within 14 days after contract execution. The Chief Procurement
Officer shall prescribe the form and content of the notice.
Each public institution of higher education shall provide the
Chief Procurement Officer, on a monthly basis, in the form and
content prescribed by the Chief Procurement Officer, a report

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of contracts that are related to the procurement of goods and
services identified in this subsection. At a minimum, this
report shall include the name of the contractor, a description
of the supply or service provided, the total amount of the
contract, the term of the contract, and the exception to the
Code utilized. A copy of any or all of these contracts shall be
made available to the Chief Procurement Officer immediately
upon request. The Chief Procurement Officer shall submit a
report to the Governor and General Assembly no later than
November 1 of each year that shall include, at a minimum, an
annual summary of the monthly information reported to the Chief
Procurement Officer.
(c) Procurements made by or on behalf of public
institutions of higher education for any of the following shall
be made in accordance with the requirements of this Code to the
extent practical as provided in this subsection:
(1) Contracts with a foreign entity necessary for
research or educational activities, provided that the
foreign entity either does not maintain an office in the
United States or is the sole source of the service or
product.
(2) Procurements of FDA-regulated goods, products, and
services necessary for the delivery of care and treatment
at medical, dental, or veterinary teaching facilities
utilized by the University of Illinois or Southern Illinois
University.

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(3) Contracts for programming and broadcast license
rights for university-operated radio and television
stations.
(4) Procurements required for fulfillment of a grant.
Upon the written request of a public institution of higher
education, the Chief Procurement Officer may waive contract
requirements, including registration, certification, and
hearing requirements of this Code if, based on the item to be
procured or the terms of a grant, compliance is impractical.
The public institution of higher education shall provide the
Chief Procurement Officer with specific reasons for the waiver,
including the necessity of contracting with a particular
vendor, and shall certify that an effort was made in good faith
to comply with the provisions of this Code. The Chief
Procurement Officer shall provide written justification for
any waivers. By November 1 of each year, the Chief Procurement
Officer shall file a report with the General Assembly
identifying each contract approved with waivers and providing
the justification given for any waivers for each of those
contracts. Notice of each waiver made under this subsection
shall be published in the Procurement Bulletin within 14 days
after contract execution. The Chief Procurement Officer shall
prescribe the form and content of the notice.
(d) Notwithstanding this Section, a waiver of the
registration requirements of Section 20-160 does not permit a
business entity and any affiliated entities or affiliated

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persons to make campaign contributions if otherwise prohibited
by Section 50-37. The total amount of contracts awarded in
accordance with this Section shall be included in determining
the aggregate amount of contracts or pending bids of a business
entity and any affiliated entities or affiliated persons.
(e) Notwithstanding subsection (e) of Section 50-10.5 of
this Code, the Chief Procurement Officer, with the approval of
the Executive Ethics Commission, may permit a public
institution of higher education to accept a bid or enter into a
contract with a business that assisted the public institution
of higher education in determining whether there is a need for
a contract or assisted in reviewing, drafting, or preparing
documents related to a bid or contract, provided that the bid
or contract is essential to research administered by the public
institution of higher education and it is in the best interest
of the public institution of higher education to accept the bid
or contract. For purposes of this subsection, "business"
includes all individuals with whom a business is affiliated,
including, but not limited to, any officer, agent, employee,
consultant, independent contractor, director, partner,
manager, or shareholder of a business. The Executive Ethics
Commission may promulgate rules and regulations for the
implementation and administration of the provisions of this
subsection (e).
(f) As used in this Section:
"Grant" means non-appropriated funding provided by a

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federal or private entity to support a project or program
administered by a public institution of higher education and
any non-appropriated funding provided to a sub-recipient of the
grant.
"Public institution of higher education" means Chicago
State University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Southern Illinois
University, University of Illinois, Western Illinois
University, and, for purposes of this Code only, the Illinois
Mathematics and Science Academy.
(g) For any individual procurement of supplies or services
(other than professional or artistic services) paid for
exclusively by non-appropriated funds, the small purchase
maximum in Section 20-20 of this Code shall be $100,000. For
any procurement of professional and artistic services paid for
exclusively by non-appropriated funds, the small purchase
maximum in subsection (f) of Section 35-30 of this Code and
subsection (a) of Section 35-35 of this Code shall be $100,000.
The chief procurement officer may establish policies and
procedures regarding the use of the small purchase method of
source selection to ensure compliance with policies, including
promotion of small business, diversity, and transparency.
(h) Exceptions to Section 35-30 of this Code are allowed
for sole source procurements, emergency procurements, and at
the discretion of the chief procurement officer or the State

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purchasing officer, but not their designees, for professional
and artistic contracts entered into under Article 35 that are
nonrenewable, one year or less in duration, and have a value of
less than $100,000. Each July 1, the value established in this
subsection shall be adjusted for inflation as determined by the
Consumer Price Index for All Urban Consumers for all items
published by the United States Department of Labor and rounded
to the nearest $100. All exceptions granted under this
subsection (h) for professional and artistic contracts must
still be submitted to the chief procurement officer for higher
education and published as provided for in subsection (f) of
Section 35-30 of this Code, shall name the authorizing chief
procurement officer or State purchasing officer, and shall
include a brief explanation of the reason for the exception.
(i) Nothing in this Section shall be construed to waive any
requirements for procurements related to construction or
construction-related services.
(j) (g) This Section is repealed on December 31, 2014.
(Source: P.A. 97-643, eff. 12-20-11; 97-895, eff. 8-3-12.)
Section 10. The State Property Control Act is amended by
changing Section 6.04 as follows:
(30 ILCS 605/6.04) (from Ch. 127, par. 133b9.4)
Sec. 6.04. (a) Annually, and upon at least 30 days notice,
the administrator may require each responsible officer to make,

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or cause to be made, an actual physical inventory check of all
items of property under his jurisdiction and control and said
inventory shall be certified to the administrator with a full
accounting of all errors or exceptions reported therein.
(b) Notwithstanding any other provision of law, with
respect to all responsible officers of public universities and
colleges, the administrator shall require a listing of only
those equipment items valued in excess of $2,500, except that
(A) the administrator shall require reporting of high theft
equipment regardless of the value of that equipment, and (B)
furniture with more than 10 years in service shall not be
subject to reporting.
For the purposes of this Section, "high theft equipment"
includes, but is not limited to, the following items:
(1) desktop and laptop computers, servers, and
portable data storage devices valued at more than $250;
(2) flat screen, LCD, high definition, and plasma
televisions and monitors valued at more than $250;
(3) wireless devices, including portable digital
assistants (PDAs), iPads, iPods, tablets, and cellular
telephones valued at more than $250;
(4) digital recording devices and video equipment
valued at more than $250;
(5) tools and machine shop equipment valued at more
than $250;
(6) all State-owned firearms and rifles regardless of

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value;
(7) all electric or gasoline-powered recreational
vehicles or maintenance vehicles regardless of value;
(8) other items deemed susceptible to theft or loss, as
determined by the administrator and the responsible
officer.
(Source: Laws 1955, p. 34.)
Section 15. The Illinois Pension Code is amended by
changing Sections 1-103.3, 15-106, 15-107, 15-113.2, 15-126.1,
15-139, 15-139.5, 15-155, 15-159, 15-168.2, and 15-198, and by
adding Sections 1-103.4, 15-155.1, and 15-155.2 as follows:
(40 ILCS 5/1-103.3)
Sec. 1-103.3. Application of 1994 amendment; funding
standard.
(a) The provisions of Public Act 88-593 this amendatory Act
of 1994 that change the method of calculating, certifying, and
paying the required State contributions to the retirement
systems established under Articles 2, 14, 15, 16, and 18 shall
first apply to the State contributions required for State
fiscal year 1996.
(b) (Blank) The General Assembly declares that a funding
ratio (the ratio of a retirement system's total assets to its
total actuarial liabilities) of 90% is an appropriate goal for
State-funded retirement systems in Illinois, and it finds that

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a funding ratio of 90% is now the generally-recognized norm
throughout the nation for public employee retirement systems
that are considered to be financially secure and funded in an
appropriate and responsible manner.
(c) Every 5 years, beginning in 1999, the Commission on
Government Forecasting and Accountability, in consultation
with the affected retirement systems and the Governor's Office
of Management and Budget (formerly Bureau of the Budget), shall
consider and determine whether the funding goals 90% funding
ratio adopted in Articles 2, 14, 15, 16, and 18 of this Code
continue subsection (b) continues to represent an appropriate
funding goals goal for those State-funded retirement systems in
Illinois, and it shall report its findings and recommendations
on this subject to the Governor and the General Assembly.
(Source: P.A. 93-1067, eff. 1-15-05.)
(40 ILCS 5/1-103.4 new)
Sec. 1-103.4. Benefit increases; third reading
requirement. A bill containing a benefit increase under this
Code may be moved from second to third reading in either house
of the General Assembly only with the concurrence of 3/4 of the
members elected to that house by record vote.
(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
Sec. 15-106. Employer. "Employer": The University of
Illinois, Southern Illinois University, Chicago State

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University, Eastern Illinois University, Governors State
University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Western Illinois
University, the State Board of Higher Education, the Illinois
Mathematics and Science Academy, the University Civil Service
Merit Board, the Board of Trustees of the State Universities
Retirement System, the Illinois Community College Board,
community college boards, any association of community college
boards organized under Section 3-55 of the Public Community
College Act, the Board of Examiners established under the
Illinois Public Accounting Act, and, only during the period for
which employer contributions required under Section 15-155 are
paid, the following organizations: the alumni associations,
the foundations and the athletic associations which are
affiliated with the universities and colleges included in this
Section as employers.
A department as defined in Section 14-103.04 is an employer
for any person appointed by the Governor under the Civil
Administrative Code of Illinois who is a participating employee
as defined in Section 15-109. The Department of Central
Management Services is an employer with respect to persons
employed by the State Board of Higher Education in positions
with the Illinois Century Network as of June 30, 2004 who
remain continuously employed after that date by the Department
of Central Management Services in positions with the Illinois
Century Network, the Bureau of Communication and Computer

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Services, or, if applicable, any successor bureau.
Prior to July 1, 2014, the The cities of Champaign and
Urbana shall be considered employers, but only during the
period for which contributions are required to be made under
subsection (b-1) of Section 15-155 and only with respect to
individuals described in subsection (h) of Section 15-107.
Beginning July 1, 2014, the cities of Champaign and Urbana
shall be considered employers but only with respect to
individuals described in subsection (h) of Section 15-107.
Beginning July 1, 2014, a teacher organization that serves
System participants shall be considered an employer but only
with respect to (1) individuals described in subsection (i) of
Section 15-107 and (2) individuals in its service who are
entitled to accrue service credit under Section 15-113.2 during
a special leave of absence with that organization.
(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
Sec. 999.)
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational,
administrative, secretarial, clerical, mechanical, labor or
other staff of an employer whose employment is permanent and
continuous or who is employed in a position in which services
are expected to be rendered on a continuous basis for at least
4 months or one academic term, whichever is less, who (A)

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receives payment for personal services on a warrant issued
pursuant to a payroll voucher certified by an employer and
drawn by the State Comptroller upon the State Treasurer or by
an employer upon trust, federal or other funds, or (B) is on a
leave of absence without pay. Employment which is irregular,
intermittent or temporary shall not be considered continuous
for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly attending
classes in a college or university which is an employer,
and is employed on a temporary basis at less than full
time;
(2) is currently receiving a retirement annuity or a
disability retirement annuity under Section 15-153.2 from
this System;
(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making
contributions to that system based upon earnings paid by an
employer;
(5) is on leave of absence without pay for more than 60
days immediately following termination of disability
benefits under this Article;
(6) is hired after June 30, 1979 as a public service
employment program participant under the Federal
Comprehensive Employment and Training Act and receives

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earnings in whole or in part from funds provided under that
Act; or
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or
(a)(19) of Section 210 of the federal Social Security Act
from the definition of employment given in that Section (42
U.S.C. 410).
(b) Any employer may, by filing a written notice with the
board, exclude from the definition of "employee" all persons
employed pursuant to a federally funded contract entered into
after July 1, 1982 with a federal military department in a
program providing training in military courses to federal
military personnel on a military site owned by the United
States Government, if this exclusion is not prohibited by the
federally funded contract or federal laws or rules governing
the administration of the contract.
(c) Any person appointed by the Governor under the Civil
Administrative Code of the State is an employee, if he or she
is a participant in this system on the effective date of the
appointment.
(d) A participant on lay-off status under civil service
rules is considered an employee for not more than 120 days from
the date of the lay-off.
(e) A participant is considered an employee during (1) the
first 60 days of disability leave, (2) the period, not to
exceed one year, in which his or her eligibility for disability

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benefits is being considered by the board or reviewed by the
courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers'
compensation or occupational disease benefits, or disability
income under an insurance contract financed wholly or partially
by the employer.
(f) Absences without pay, other than formal leaves of
absence, of less than 30 calendar days, are not considered as
an interruption of a person's status as an employee. If such
absences during any period of 12 months exceed 30 work days,
the employee status of the person is considered as interrupted
as of the 31st work day.
(g) A staff member whose employment contract requires
services during an academic term is to be considered an
employee during the summer and other vacation periods, unless
he or she declines an employment contract for the succeeding
academic term or his or her employment status is otherwise
terminated, and he or she receives no earnings during these
periods.
(h) An individual who was a participating employee employed
in the fire department of the University of Illinois's
Champaign-Urbana campus immediately prior to the elimination
of that fire department and who immediately after the
elimination of that fire department became employed by the fire
department of the City of Urbana or the City of Champaign shall
continue to be considered as an employee for purposes of this

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Article for so long as the individual remains employed as a
firefighter by the City of Urbana or the City of Champaign. The
individual shall cease to be considered an employee under this
subsection (h) upon the first termination of the individual's
employment as a firefighter by the City of Urbana or the City
of Champaign.
(i) An individual who is employed on a full-time basis as
an officer or employee of a statewide teacher organization that
serves System participants or an officer of a national teacher
organization that serves System participants may participate
in the System and shall be deemed an employee, provided that
(1) the individual has previously earned creditable service
under this Article, (2) the individual files with the System an
irrevocable election to become a participant before January 5,
2012 (the effective date of Public Act 97-651) this amendatory
Act of the 97th General Assembly, (3) the individual does not
receive credit for that employment under any other Article of
this Code, and (4) the individual first became a full-time
employee of the teacher organization and becomes a participant
before January 5, 2012 the effective date of this amendatory
Act of the 97th General Assembly. An employee under this
subsection (i) is responsible for paying to the System both (A)
employee contributions based on the actual compensation
received for service with the teacher organization and (B)
until July 1, 2014, employer contributions equal to the normal
costs (as defined in Section 15-155) resulting from that

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service; all or any part of these contributions may be paid on
the employee's behalf or picked up for tax purposes (if
authorized under federal law) by the teacher organization.
Beginning July 1, 2014, the employer of that employee is
responsible for paying the employer contributions resulting
from that service, as provided in Section 15-155.
A person who is an employee as defined in this subsection
(i) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection for any such prior employment for
which the applicant received credit under any other provision
of this Code, or during which the applicant was on a leave of
absence under Section 15-113.2.
(j) A person employed by the State Board of Higher
Education in a position with the Illinois Century Network as of
June 30, 2004 shall be considered to be an employee for so long
as he or she remains continuously employed after that date by
the Department of Central Management Services in a position
with the Illinois Century Network, the Bureau of Communication
and Computer Services, or, if applicable, any successor bureau
and meets the requirements of subsection (a).
(Source: P.A. 97-651, eff. 1-5-12.)

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(40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
Sec. 15-113.2. Service for leaves of absence. "Service for
leaves of absence" includes those periods of leaves of absence
at less than 50% pay, except military leave and periods of
disability leave in excess of 60 days, for which the employee
pays the contributions required under Section 15-157 in
accordance with rules prescribed by the board based upon the
employee's basic compensation on the date the leave begins, or
in the case of leave for service with a teacher organization,
based upon the actual compensation received by the employee for
such service after January 26, 1988, if the employee so elects
within 30 days of that date or the date the leave for service
with a teacher organization begins, whichever is later;
provided that the employee (1) returns to employment covered by
this system at the expiration of the leave, or within 30 days
after the termination of a disability which occurs during the
leave and continues this employment at a percentage of time
equal to or greater than the percentage of time immediately
preceding the leave of absence for at least 8 consecutive
months or a period equal to the period of the leave, whichever
is less, or (2) is precluded from meeting the foregoing
conditions because of disability or death. If service credit is
denied because the employee fails to meet these conditions, the
contributions covering the leave of absence shall be refunded
without interest. The return to employment condition does not
apply if the leave of absence is for service with a teacher

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organization.
Service credit provided under this Section shall not exceed
3 years in any period of 10 years, unless the employee is on
special leave granted by the employer for service with a
teacher organization. Until July 1, 2014, commencing
Commencing with the fourth year in any period of 10 years, a
participant on such special leave is also required to pay
employer contributions equal to the normal cost as defined in
Section 15-155, based upon the employee's basic compensation on
the date the leave begins, or based upon the actual
compensation received by the employee for service with a
teacher organization if the employee has so elected. Beginning
July 1, 2014, the employer of a participant on such special
leave shall pay the employer contributions attributable to the
resulting service credit, as provided in Section 15-155.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
Sec. 15-126.1. Academic year. "Academic year": The
12-month period beginning on the first day of the fall term as
determined by each employer, or if the employer does not have
an academic program divided into terms, then beginning
September 1. For the purposes of Section 15-139.5 and
subsection (b) of Section 15-139, however, "academic year"
means the 12-month period beginning September 1.
(Source: P.A. 84-1472.)

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(40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
Sec. 15-139. Retirement annuities; cancellation; suspended
during employment.
(a) If an annuitant returns to employment for an employer
within 60 days after the beginning of the retirement annuity
payment period, the retirement annuity shall be cancelled, and
the annuitant shall refund to the System the total amount of
the retirement annuity payments which he or she received. If
the retirement annuity is cancelled, the participant shall
continue to participate in the System.
(b) If an annuitant retires prior to age 60 and receives or
becomes entitled to receive during any month compensation in
excess of the monthly retirement annuity (including any
automatic annual increases) for services performed after the
date of retirement for any employer under this System, that
portion of the monthly retirement annuity provided by employer
contributions shall not be payable.
If an annuitant retires at age 60 or over and receives or
becomes entitled to receive during any academic year
compensation in excess of the difference between his or her
highest annual earnings prior to retirement and his or her
annual retirement annuity computed under Rule 1, Rule 2, Rule
3, Rule 4, or Rule 5 of Section 15-136, or under Section
15-136.4, for services performed after the date of retirement
for any employer under this System, that portion of the monthly

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retirement annuity provided by employer contributions shall be
reduced by an amount equal to the compensation that exceeds
such difference.
However, any remuneration received for serving as a member
of the Illinois Educational Labor Relations Board shall be
excluded from "compensation" for the purposes of this
subsection (b), and serving as a member of the Illinois
Educational Labor Relations Board shall not be deemed to be a
return to employment for the purposes of this Section. This
provision applies without regard to whether service was
terminated prior to the effective date of this amendatory Act
of 1991.
"Academic year", as used in this subsection (b), means the
12-month period beginning September 1.
(c) If an employer certifies that an annuitant has been
reemployed on a permanent and continuous basis or in a position
in which the annuitant is expected to serve for at least 9
months, the annuitant shall resume his or her status as a
participating employee and shall be entitled to all rights
applicable to participating employees upon filing with the
board an election to forgo all annuity payments during the
period of reemployment. Upon subsequent retirement, the
retirement annuity shall consist of the annuity which was
terminated by the reemployment, plus the additional retirement
annuity based upon service granted during the period of
reemployment, but the combined retirement annuity shall not

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exceed the maximum annuity applicable on the date of the last
retirement.
The total service and earnings credited before and after
the initial date of retirement shall be considered in
determining eligibility of the employee or the employee's
beneficiary to benefits under this Article, and in calculating
final rate of earnings.
In determining the death benefit payable to a beneficiary
of an annuitant who again becomes a participating employee
under this Section, accumulated normal and additional
contributions shall be considered as the sum of the accumulated
normal and additional contributions at the date of initial
retirement and the accumulated normal and additional
contributions credited after that date, less the sum of the
annuity payments received by the annuitant.
The survivors insurance benefits provided under Section
15-145 shall not be applicable to an annuitant who resumes his
or her status as a participating employee, unless the
annuitant, at the time of initial retirement, has a survivors
insurance beneficiary who could qualify for such benefits.
If the participant's employment is terminated because of
circumstances other than death before 9 months from the date of
reemployment, the provisions of this Section regarding
resumption of status as a participating employee shall not
apply. The normal and survivors insurance contributions which
are deducted during this period shall be refunded to the

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annuitant without interest, and subsequent benefits under this
Article shall be the same as those which were applicable prior
to the date the annuitant resumed employment.
The amendments made to this Section by this amendatory Act
of the 91st General Assembly apply without regard to whether
the annuitant was in service on or after the effective date of
this amendatory Act.
(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
(40 ILCS 5/15-139.5)
Sec. 15-139.5. Return to work by affected annuitant; notice
and contribution by employer.
(a) An employer who employs or re-employs a person
receiving a retirement annuity from the System in an academic
year beginning on or after August 1, 2014 2013 must notify the
System of that employment within 60 days after employing the
annuitant. The notice must include a summary copy of the
contract of employment or ; if no written contract of employment
exists, then the notice must specify the rate of compensation
and the anticipated length of employment of that annuitant. The
notice must specify whether the annuitant will be compensated
from federal, corporate, foundation, or trust funds or grants
of State funds that identify the principal investigator by
name. The notice must include the employer's determination of
whether or not the annuitant is an "affected annuitant" as
defined in subsection (b).

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The employer must also record, document, and certify to the
System (i) the number of paid days and paid weeks worked by the
annuitant in the academic year, (ii) the amount of compensation
paid to the annuitant for employment during the academic year,
and (ii) (iii) the amount of that compensation, if any, that
comes from either federal, corporate, foundation, or trust
funds or grants of State funds that identify the principal
investigator by name.
As used in this Section, "academic year" means the 12-month
period beginning September 1. has the meaning ascribed to that
term in Section 15-126.1; "paid day" means a day on which a
person performs personal services for an employer and for which
the person is compensated by the employer; and "paid week"
means a calendar week in which a person has at least one paid
day.
For the purposes of this Section, an annuitant whose
employment by an employer extends over more than one academic
year shall be deemed to be re-employed by that employer in each
of those academic years.
The System may specify the time, form, and manner of
providing the determinations, notifications, certifications,
and documentation required under this Section.
(b) A person receiving a retirement annuity from the System
becomes an "affected annuitant" on the first day of the
academic year following the academic year in which the
annuitant first meets both of the following condition

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conditions:
(1) (Blank). While receiving a retirement annuity
under this Article, the annuitant has been employed on or
after August 1, 2013 by one or more employers under this
Article for a total of more than 18 paid weeks (which need
not have been with the same employer or in the same
academic year); except that any periods of employment for
which the annuitant was compensated solely from federal,
corporate, foundation, or trust funds or grants of State
funds that identify the principal investigator by name are
excluded.
(2) While receiving a retirement annuity under this
Article, the annuitant was employed on or after August 1,
2014 2013 by one or more employers under this Article and
received or became entitled to receive during an academic
year compensation for that employment in excess of 40% of
his or her highest annual earnings prior to retirement;
except that compensation paid from federal, corporate,
foundation, or trust funds or grants of State funds that
identify the principal investigator by name is excluded.
A person who becomes an affected annuitant remains an
affected annuitant, except for any period during which the
person returns to active service and does not receive a
retirement annuity from the System.
(c) It is the obligation of the employer to determine
whether an annuitant is an affected annuitant before employing

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the annuitant. For that purpose the employer may require the
annuitant to disclose and document his or her relevant prior
employment and earnings history. Failure of the employer to
make this determination correctly and in a timely manner or to
include this determination with the notification required
under subsection (a) does not excuse the employer from making
the contribution required under subsection (e).
The System may assist the employer in determining whether a
person is an affected annuitant. The System shall inform the
employer if it discovers that the employer's determination is
inconsistent with the employment and earnings information in
the System's records.
(d) Upon the request of an annuitant, the System shall
certify to the annuitant or the employer the following
information as reported by the employers, as that information
is indicated in the records of the System: (i) the annuitant's
highest annual earnings prior to retirement, (ii) the number of
paid weeks worked by the annuitant for an employer on or after
August 1, 2013, (iii) the compensation paid for that employment
in each academic year, and (iii) (iv) whether any of that
employment or compensation has been certified to the System as
being paid from federal, corporate, foundation, or trust funds
or grants of State funds that identify the principal
investigator by name. The System shall only be required to
certify information that is received from the employers.
(e) In addition to the requirements of subsection (a), an

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employer who employs an affected annuitant must pay to the
System an employer contribution in the amount and manner
provided in this Section, unless the annuitant is compensated
by that employer solely from federal, corporate, foundation, or
trust funds or grants of State funds that identify the
principal investigator by name.
The employer contribution required under this Section for
employment of an affected annuitant in an academic year shall
be equal to 12 times the amount of the gross monthly retirement
annuity payable to the annuitant for the month in which the
first paid day of that employment in that academic year occurs,
after any reduction in that annuity that may be imposed under
subsection (b) of Section 15-139.
If an affected annuitant is employed by more than one
employer in an academic year, the employer contribution
required under this Section shall be divided among those
employers in proportion to their respective portions of the
total compensation paid to the affected annuitant for that
employment during that academic year.
If the System determines that an employer, without
reasonable justification, has failed to make the determination
of affected annuitant status correctly and in a timely manner,
or has failed to notify the System or to correctly document or
certify to the System any of the information required by this
Section, and that failure results in a delayed determination by
the System that a contribution is payable under this Section,

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then the amount of that employer's contribution otherwise
determined under this Section shall be doubled.
The System shall deem a failure to correctly determine the
annuitant's status to be justified if the employer establishes
to the System's satisfaction that the employer, after due
diligence, made an erroneous determination that the annuitant
was not an affected annuitant due to reasonable reliance on
false or misleading information provided by the annuitant or
another employer, or an error in the annuitant's official
employment or earnings records.
(f) Whenever the System determines that an employer is
liable for a contribution under this Section, it shall so
notify the employer and certify the amount of the contribution.
The employer may pay the required contribution without interest
at any time within one year after receipt of the certification.
If the employer fails to pay within that year, then interest
shall be charged at a rate equal to the System's prescribed
rate of interest, compounded annually from the 366th day after
receipt of the certification from the System. Payment must be
concluded within 2 years after receipt of the certification by
the employer. If the employer fails to make complete payment,
including applicable interest, within 2 years, then the System
may, after giving notice to the employer, certify the
delinquent amount to the State Comptroller, and the Comptroller
shall thereupon deduct the certified delinquent amount from
State funds payable to the employer and pay them instead to the

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System.
(g) If an employer is required to make a contribution to
the System as a result of employing an affected annuitant and
the annuitant later elects to forgo his or her annuity in that
same academic year pursuant to subsection (c) of Section
15-139, then the required contribution by the employer shall be
waived, and if the contribution has already been paid, it shall
be refunded to the employer without interest.
(h) Notwithstanding any other provision of this Article,
the employer contribution required under this Section shall not
be included in the determination of any benefit under this
Article or any other Article of this Code, regardless of
whether the annuitant returns to active service, and is in
addition to any other State or employer contribution required
under this Article.
(i) Notwithstanding any other provision of this Section to
the contrary, if an employer employs an affected annuitant in
order to continue critical operations in the event of either an
employee's unforeseen illness, accident, or death or a
catastrophic incident or disaster, then, for one and only one
academic year, the employer is not required to pay the
contribution set forth in this Section for that annuitant. The
employer shall, however, immediately notify the System upon
employing a person subject to this subsection (i). For the
purposes of this subsection (i), "critical operations" means
teaching services, medical services, student welfare services,

09800SB1687ham002 - 31 - LRB098 07548 EFG 46686 a
and any other services that are critical to the mission of the
employer.
(j) This Section shall be applied and coordinated with the
regulatory obligations contained in the State Universities
Civil Service Act. This Section shall not apply to an annuitant
if the employer of that annuitant provides documentation to the
System that (1) the annuitant is employed in a status
appointment position, as that term is defined in 80 Ill. Adm.
Code 250.80, and (2) due to obligations contained under the
State Universities Civil Service Act, the employer does not
have the ability to limit the earnings or duration of
employment for the annuitant while employed in the status
appointment position.
(Source: P.A. 97-968, eff. 8-16-12.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. State and employer Employer contributions.
(a) The State of Illinois shall make contributions by
appropriations of amounts which, together with contributions
paid by employers, 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 and employer

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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 System's actuary, using the formulas
provided in this Section formula in subsection (a-1).
The System shall make all necessary assumptions to
determine and allocate total demographic gains and losses for
the purpose of determining State and employer contributions
under this Section. Such assumptions shall include but not be
limited to the rates of retirement, termination, disability,
and mortality.
(a-1) For State fiscal years 2012 through 2014 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 2015 through 2044, 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 actuarial assets of the System
attributable to the State up to 100% of the total actuarial

09800SB1687ham002 - 33 - LRB098 07548 EFG 46686 a
liabilities of the System attributable to the State by the end
of State fiscal year 2044. 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 2044 and shall be determined under the
entry age normal actuarial cost method.
If at the end of State fiscal year 2044 the total actuarial
assets of the System attributable to the State are less than
100% of the total actuarial liabilities of the System
attributable to the State, the System shall determine the
amount necessary to bring that those assets up to 100% of those
liabilities and shall certify that amount as a required State
contribution for State fiscal year 2046, and the State shall
pay that amount to the System in State fiscal year 2046.
Beginning when the State has paid the contribution required
under this subsection (a-1) for fiscal year 2046, or in State
fiscal year 2045 if no such contribution for fiscal year 2046
is required, the State has no further obligation to make
contributions to the System under this subsection (a-1).
For the purposes of this Article, "total actuarial
liabilities of the System attributable to the State" means the
total liabilities of the System less any notional liabilities
assigned to employer accounts under Section 15-155.2.
For the purposes of this Article, "total actuarial assets
of the System attributable to the State" means the total assets
of the System less any notional assets assigned to employer

09800SB1687ham002 - 34 - LRB098 07548 EFG 46686 a
accounts under Section 15-155.2.
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.
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

09800SB1687ham002 - 35 - LRB098 07548 EFG 46686 a
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
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

09800SB1687ham002 - 36 - LRB098 07548 EFG 46686 a
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 through and each fiscal year 2014 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 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

09800SB1687ham002 - 37 - LRB098 07548 EFG 46686 a
2011, the State is contributing at the rate otherwise required
under this Section.
(a-5) In addition to the contributions that the State is
otherwise required to make under this Article, beginning in
fiscal year 2015 and in each fiscal year thereafter until the
State has no further obligation to make contributions to the
System under subsection (a-1), the State shall be required to
make an additional contribution to the System equal to the
projected dollar amount of contributions to be made by
employers pursuant to items (i) and (vi) of subsection (a-10)
for that fiscal year. Contributions required to be made
pursuant to this subsection do not reduce and do not constitute
payment of any portion of the required State contribution made
to the System pursuant to subsection (a-1) in that fiscal year.
A contribution required to be made pursuant to this subsection
shall not reduce, and shall not be included in the calculation
of, the required contribution to be made by the State pursuant
to subsection (a-1) in any future year, until the System has
received the contribution pursuant to this subsection.
(a-10) Subject to the limitations provided in subsection
(a-15) of this Section, beginning with State fiscal year 2015,
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) the employer normal cost for that fiscal year for
participating employees of that employer (excluding costs

09800SB1687ham002 - 38 - LRB098 07548 EFG 46686 a
attributable to any new benefit increases approved by that
employer pursuant to Section 15-198), determined as a
percentage of applicable payroll; 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
15-155.2 (excluding costs attributable to any new benefit
increases approved by that employer pursuant to Section
15-198), determined as a level percentage of payroll over a
30-year rolling amortization period; plus
(iii) that employer's normal cost for that fiscal year
attributable to all new benefit increases approved by that
employer pursuant to Section 15-198; plus
(iv) the amounts required for that fiscal year to
amortize any unfunded actuarial accrued liability
associated with the present value of each new benefit
increase approved by that employer pursuant to Section
15-198, determined as a level percentage of payroll over a
fixed 10-year amortization period; plus
(v) beginning when the State has no further obligation
to make contributions to the System under subsection (a-1),
the amount required for that fiscal year to amortize any
unfunded actuarial accrued liability of the System not
attributable to any employer's account under Section
15-155.2, determined as a level percentage of payroll over

09800SB1687ham002 - 39 - LRB098 07548 EFG 46686 a
a 30-year rolling amortization period; plus
(vi) the amount of employer contributions for that
fiscal year required for employees of that employer who
participate in the self-managed plan under Section
15-158.2.
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, exclusive of costs attributable to any new benefit
increase approved pursuant to Section 15-198 and exclusive of
employer contributions required for participating employees of
the self-managed plan under Section 15-158.2.
In determining contributions required under item (ii) of
this subsection, the System shall determine an individual rate
determined as a percentage of projected payroll applicable to
each employer based on that employer's individual account under
Section 15-155.2, exclusive of (i) any liabilities
attributable to the System as a whole rather than to the
employer's account and (ii) costs attributable to any new
benefit increase approved pursuant to Section 15-198.
In determining contributions required under items (iii)
and (iv) of this subsection, the System shall determine an
individual rate determined as a percentage of projected payroll
applicable to each employer that approves a new benefit
increase pursuant to Section 15-198.
In determining contributions required under item (v) of

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this subsection, the System shall determine an aggregate rate
determined as a percentage of projected payroll applicable to
all employers under the System.
The contributions required under this subsection (a-10)
shall be paid by an employer concurrently with that employer's
payroll payment period.
(a-15) For State fiscal year 2015, the required
contribution of employers under item (i) of subsection (a-10)
shall be reduced to an amount equal to 0.5% of applicable
payroll. For each fiscal year thereafter, the required
contribution of employers under item (i) of subsection (a-10)
shall be the percentage of projected payroll required under
this subsection (a-15) for the previous fiscal year, increased
by 0.5% of payroll, except that when the percentage of
projected payroll required under this subsection (a-15) first
reaches the percentage of payroll required under item (i) of
subsection (a-10), this subsection (a-15) shall cease to apply.
For State fiscal year 2015, the required contribution of
employers under item (vi) of subsection (a-10) shall be reduced
to an amount equal to 0.5% of applicable payroll. For each
fiscal year thereafter, the required contribution of employers
under item (vi) of subsection (a-10) shall be the percentage of
projected payroll required under this subsection (a-15) for the
previous fiscal year, increased by 0.5% of payroll, except that
when the percentage of payroll required under this subsection
(a-15) first reaches the percentage of payroll required under

09800SB1687ham002 - 41 - LRB098 07548 EFG 46686 a
item (vi) of subsection (a-10), this subsection (a-15) shall
cease to apply.
The limitations in this subsection (a-15) do not apply to
(i) employer contributions required to be made under subsection
(b) of this Section for employees who are compensated out of
trust or federal funds, (ii) contributions required to be made
by the City of Champaign or the City of Urbana for individuals
described under subsection (h) of Section 15-107, (iii)
contributions required to be made by a teacher organization for
individuals described under subsection (i) of Section 15-107,
or (iv) contributions required to be made by a teacher
organization for individuals on special leave of absence under
Section 15-113.2.
(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 prior to July 1,
2014. Beginning July 1, 2014, universities having employees who
are compensated out of local auxiliary funds, income funds, or
service enterprise funds shall pay to the Board contributions
from those funds that are sufficient to cover the accruing
normal costs on behalf of those employees. The local auxiliary
funds, income funds, and service enterprise funds of

09800SB1687ham002 - 42 - LRB098 07548 EFG 46686 a
universities shall not be considered trust funds for the
purpose of this Article, but funds of alumni associations,
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

09800SB1687ham002 - 43 - LRB098 07548 EFG 46686 a
from appropriations made to the employers or to the System. The
contributions for Class I community colleges covering earnings
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

09800SB1687ham002 - 44 - LRB098 07548 EFG 46686 a
academic year, determined on a full-time equivalent basis, by
more than 6%, 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, 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

09800SB1687ham002 - 45 - LRB098 07548 EFG 46686 a
appropriate, recalculate the amount due.
The employer contributions required under this subsection
(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 (1) payments made
or salary increases given on or after June 1, 2005 but before
July 1, 2011 and (2) payments made or salary increases given
after the limitation on employer contributions under
subsection (a-15) of Section 15-155 ceases to apply to
contributions under item (i) of subsection (a-10) of that
Section. 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

09800SB1687ham002 - 46 - LRB098 07548 EFG 46686 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
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

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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
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.

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(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
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

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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
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 5/15-155.1 new)
Sec. 15-155.1. Actions to enforce payment by employers.
(a) If any employer fails to transmit to the System
contributions required of it under this Article in the manner
prescribed under subsection (a-10) of Section 15-155 or
contributions collected by it from its participating employees
for the purposes of this Article for more than 90 days after
the payment of such contributions is due, then the System,
after giving notice to that employer, may certify to the State
Comptroller the amounts of the delinquent payments, and the
Comptroller shall deduct the amounts so certified or any part
thereof from any payments or grants of State funds to the
employer and shall pay the amounts so deducted to the System.
If State funds from which such deductions may be made are not
available, the System may proceed against the employer to

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recover the amounts of the delinquent payments in the circuit
court of Champaign County.
(b) If any employer fails to transmit to the System
contributions required of it under this Article or
contributions collected by it from its participating employees
for the purposes of this Article for more than 90 days after
the payment of the contributions is due, the System, after
giving notice to the employer, may certify the amounts of the
delinquent payments to the county treasurer of any county in
which the employer is located, who shall deduct the amounts so
certified or any part thereof from the amounts collected from
any tax levied by the employer and shall pay the amount so
deducted to the System.
(c) If reports furnished to the System by the employer
involved are inadequate for the computation of the amounts of
any payments, the System may provide for such audit of the
records of the employer as may be required to establish the
amounts of the delinquent payments. The employer shall make its
records available to the System for the purpose of the audit.
The cost of the audit shall be added to the amount of the
payments and shall be recovered by the System from the employer
at the same time and in the same manner as the payments are
recovered.
(d) This Section does not apply to the State as an employer
under this Article.

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(40 ILCS 5/15-155.2 new)
Sec. 15-155.2. Individual employer accounts.
(a) The System shall create and maintain an individual
account for each employer for the purposes of determining
employer contributions under subsection (a-10) of Section
15-155. Each employer's account shall be notionally charged
with the liabilities attributable to that employer and credited
with the assets attributable to that employer.
(b) Beginning in fiscal year 2015, the System shall assign
notional liabilities to each employer's account, equal to:
(1) an amount equal to employer contributions required
to be made by the employer pursuant to:
(i) items (i) and (iii) of subsection (a-10) of
Section 15-155;
(ii) any unfunded actuarial accrued liability
associated with each new benefit increase approved by
that employer pursuant to Section 15-198; and
(iii) subsection (g) of Section 15-155;
(2) the amount of employee contributions paid by
participating employees of the employer, except that
during any fiscal year in which the employer contribution
under item (i) of subsection (a-10) of Section 15-155 is
reduced under subsection (a-15) of that Section, the amount
of employee contributions credited under this subsection
(b) shall be reduced by the same proportion; plus
(3) any amounts representing employer or employee

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contributions transferred or paid to the System in order to
transfer or establish service credit for a participating
employee of the employer as determined by the System.
The amount of any employer contributions required to be
made under Section 15-139.5 is not chargeable to the employer's
account.
(c) Beginning in fiscal year 2015, the System shall assign
notional assets to each employer's account equal to:
(1) the amounts of employer contributions made
pursuant to items (i), (ii), (iii), and (iv) of subsection
(a-10) of Section 15-155 and the amount of employer
contributions made pursuant to subsection (g) of Section
15-155; plus
(2) the amount of employee contributions paid by
participating employees of the employer, except that
during any fiscal year in which the employer contribution
under item (i) of subsection (a-10) of Section 15-155 is
reduced under subsection (a-15) of that Section, the amount
of employee contributions credited under this subsection
(c) shall be reduced by the same proportion; plus
(3) any amounts representing employer or employee
contributions transferred or paid to the System in order to
transfer or establish service credit for a participating
employee of the employer as determined by the System.
The amount of any employer contributions required to be
made under Section 15-139.5 is not creditable to the employer's

09800SB1687ham002 - 53 - LRB098 07548 EFG 46686 a
account.
(d) On an annual basis and calculated with assumptions and
tables developed by the System, the System shall deduct from
each employer's account an actuarially determined amount equal
to the employer's portion of the benefits paid to that
employer's annuitant population. The System shall make such
determinations based on the portion of benefit payments that
are attributed to the employer's liabilities assigned under
subsection (b) of this Section. The System shall make the
assumptions required to determine and allocate benefit
payments to the State's portion of total liabilities and to the
employer's portion of total liabilities.
(e) The System shall report to the General Assembly and the
Governor prior to January 1, 2014 any liability of an employer
anticipated to accrue after July 1, 2014 that is not assigned
to an employer account pursuant to this Section.
(40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
Sec. 15-159. Board created.
(a) A board of trustees constituted as provided in this
Section shall administer this System. The board shall be known
as the Board of Trustees of the State Universities Retirement
System.
(b) When all of the changes to this Section made by this
amendatory Act of the 98th General Assembly have been
implemented, the Board will consist of 12 members as follows: 4

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elected members who are active participants, 2 elected members
who are annuitants, 3 members elected by the trustees of
Illinois public universities, and 3 members elected by the
trustees of Illinois community colleges. The elected members
will be evenly split between persons representing public
universities and persons representing community colleges. The
Chairperson of the Board of Higher Education will no longer be
a member, and the Governor will no longer appoint any members.
The members of the Board will choose one of the members to
serve as chairperson. Until July 1, 1995, the Board of Trustees
shall be constituted as follows:
Two trustees shall be members of the Board of Trustees of
the University of Illinois, one shall be a member of the Board
of Trustees of Southern Illinois University, one shall be a
member of the Board of Trustees of Chicago State University,
one shall be a member of the Board of Trustees of Eastern
Illinois University, one shall be a member of the Board of
Trustees of Governors State University, one shall be a member
of the Board of Trustees of Illinois State University, one
shall be a member of the Board of Trustees of Northeastern
Illinois University, one shall be a member of the Board of
Trustees of Northern Illinois University, one shall be a member
of the Board of Trustees of Western Illinois University, and
one shall be a member of the Illinois Community College Board,
selected in each case by their respective boards, and 2 shall
be participants of the system appointed by the Governor for a 6

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year term with the first appointment made pursuant to this
amendatory Act of 1984 to be effective September 1, 1985, and
one shall be a participant appointed by the Illinois Community
College Board for a 6 year term, and one shall be a participant
appointed by the Board of Trustees of the University of
Illinois for a 6 year term, and one shall be a participant or
annuitant of the system who is a senior citizen age 60 or older
appointed by the Governor for a 6 year term with the first
appointment to be effective September 1, 1985.
The terms of all trustees holding office under this
subsection (b) on June 30, 1995 shall terminate at the end of
that day and the Board shall thereafter be constituted as
provided in subsection (c).
(c) (Blank). Beginning July 1, 1995, the Board of Trustees
shall be constituted as follows:
The Board shall consist of 9 trustees appointed by the
Governor. Two of the trustees, designated at the time of
appointment, shall be participants of the System. Two of the
trustees, designated at the time of appointment, shall be
annuitants of the System who are receiving retirement annuities
under this Article. The 5 remaining trustees may, but need not,
be participants or annuitants of the System.
The term of office of trustees appointed under this
subsection (c) shall be 6 years, beginning on July 1. However,
of the initial trustees appointed under this subsection (c), 3
shall be appointed for terms of 2 years, 3 shall be appointed

09800SB1687ham002 - 56 - LRB098 07548 EFG 46686 a
for terms of 4 years, and 3 shall be appointed for terms of 6
years, to be designated by the Governor at the time of
appointment.
The terms of all trustees holding office under this
subsection (c) on the effective date of this amendatory Act of
the 96th General Assembly shall terminate on that effective
date. The Governor shall make nominations for appointment under
this Section within 60 days after the effective date of this
amendatory Act of the 96th General Assembly. A trustee sitting
on the board on the effective date of this amendatory Act of
the 96th General Assembly may not hold over in office for more
than 90 days after the effective date of this amendatory Act of
the 96th General Assembly. Nothing in this Section shall
prevent the Governor from making a temporary appointment or
nominating a trustee holding office on the day before the
effective date of this amendatory Act of the 96th General
Assembly.
(d) Beginning on the 90th day after April 3, 2009 (the
effective date of Public Act 96-6) this amendatory Act of the
96th General Assembly, the Board of Trustees shall be
constituted as follows:
(1) The Chairperson of the Board of Higher Education,
who shall act as chairperson of this Board; except that the
Chairperson of the Board of Higher Education shall be a
member of the Board only through June 30, 2014.
(2) Four trustees appointed by the Governor with the

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advice and consent of the Senate who may not be members of
the system or hold an elective State office and who shall
serve for a term of 6 years, except that the terms of the
initial appointees under this subsection (d) shall be as
follows: 2 for a term of 3 years and 2 for a term of 6
years. However, no additional appointment may be made by
the Governor under this item (2), and no vacancy may be
filled by the Governor, after the effective date of this
amendatory Act of the 98th General Assembly.
(3) Four active participants of the system to be
elected from the contributing membership of the system by
the contributing members, no more than 2 of which may be
from any of the University of Illinois campuses, who shall
serve for a term of 6 years, except that the terms of the
initial electees shall be as follows: 2 for a term of 3
years and 2 for a term of 6 years. However, beginning with
the election of active participants next occurring after
the effective date of this amendatory Act of the 98th
General Assembly, (i) 2 of these members shall be active
employees of a community college employer and (ii) 2 of
these members shall be active employees of a public
university employer, no more than one of whom may be from
any of the University of Illinois campuses.
(4) Two annuitants of the system who have been
annuitants for at least one full year, to be elected from
and by the annuitants of the system, no more than one of

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which may be from any of the University of Illinois
campuses, who shall serve for a term of 6 years, except
that the terms of the initial electees shall be as follows:
one for a term of 3 years and one for a term of 6 years.
However, beginning with the election of annuitant members
next occurring after the effective date of this amendatory
Act of the 98th General Assembly, (i) one of the annuitant
members shall be a retired employee of a community college
employer and (ii) one of the annuitant members shall be a
retired employee of a public university employer.
For the purposes of this Section, the Governor may make a
nomination and the Senate may confirm the nominee in advance of
the commencement of the nominee's term of office.
(d-5) Beginning July 1, 2014, there shall be one additional
member of the Board of Trustees, to be elected by the trustees
of Illinois public universities from a list of nominees
provided by the 14 presidents and chancellors of Illinois
public universities, acting jointly. The number of nominees
shall be at least twice the number of positions to be filled.
The System shall administer the election.
The member of the Board of Trustees elected under this
subsection (d-5) shall serve for a term of 4 years and may, but
need not, be a participant or annuitant of the System.
(d-10) Beginning July 1, 2014, there shall be one
additional member of the Board of Trustees, to be elected by
the trustees of Illinois community college districts from a

09800SB1687ham002 - 59 - LRB098 07548 EFG 46686 a
list of nominees provided by an association of community
college boards organized under Section 3-55 of the Public
Community College Act, in consultation with trustees serving
pursuant to Section 7-2 of that Act. The number of nominees
shall be at least twice the number of positions to be filled.
The System shall administer the election.
The member of the Board of Trustees elected under this
subsection (d-10) shall serve for a term of 4 years and may,
but need not, be a participant or annuitant of the System.
(d-15) Upon the expiration of the terms of the members of
the Board appointed by the Governor under subdivision (d)(2)
who are serving on the effective date of this amendatory Act of
the 98th General Assembly, or immediately in the case of a
vacancy in any of those positions on that effective date, 2 of
those seats shall instead be filled in the manner set forth in
subsection (d-5) and 2 of those seats shall instead be filled
in the manner set forth in subsection (d-10), as follows: (1)
whenever possible, positions available under this subsection
shall be filled in a manner that produces equal numbers of
positions filled in the manner provided under subsection (d-5)
and subsection (d-10); and (2) when that is not possible, a
position that becomes available under this subsection shall
first be filled in the manner set forth in subsection (d-5).
A member of the Board of Trustees elected under this
subsection (d-15) shall serve for a term of 4 years and may,
but need not, be a participant or annuitant of the System.

09800SB1687ham002 - 60 - LRB098 07548 EFG 46686 a
(d-20) Before July 1 of each even-numbered year, the Board
shall elect one of its members to serve as Chairperson of the
Board for a term of 2 years beginning on that July 1.
(e) The 6 elected trustees under items (3) and (4) of
subsection (d) shall be elected within 90 days after April 3,
2009 (the effective date of Public Act 96-6) this amendatory
Act of the 96th General Assembly for a term beginning on the
90th day after that the effective date of this amendatory Act.
Trustees shall be elected thereafter as terms expire for a
6-year term beginning July 15 next following their election,
and such election shall be held on May 1, or on May 2 when May 1
falls on a Sunday. The board may establish rules for the
election of trustees to implement the provisions of Public Act
96-6 this amendatory Act of the 96th General Assembly and for
future elections. Candidates for the participating trustee
shall be nominated by petitions in writing, signed by not less
than 400 participants with their addresses shown opposite their
names. Candidates for the annuitant trustee shall be nominated
by petitions in writing, signed by not less than 100 annuitants
with their addresses shown opposite their names. If there is
more than one qualified nominee for each elected trustee, then
the board shall conduct a secret ballot election by mail for
that trustee, in accordance with rules as established by the
board. If there is only one qualified person nominated by
petition for each elected trustee, then the election as
required by this Section shall not be conducted for that

09800SB1687ham002 - 61 - LRB098 07548 EFG 46686 a
trustee and the board shall declare such nominee duly elected.
A vacancy occurring in the elective membership of the board
shall be filled for the unexpired term by the elected trustees
serving on the board for the remainder of the term.
The board may establish rules and procedures for the
nomination and election of trustees under subsections (d-5),
(d-10), and (d-15) of this Section.
(f) A vacancy on the board of trustees caused by
resignation, death, expiration of term of office, or other
reason shall be filled by a qualified person appointed by the
appointing authority or elected by the electing authority
Governor for the remainder of the unexpired term.
(g) Trustees (other than the trustees incumbent on June 30,
1995 or as provided in subsection (c) of this Section) shall
continue in office until their respective successors are
appointed and have qualified, except that a trustee appointed
to one of the participant positions shall be disqualified
immediately upon the termination of his or her status as a
participant and a trustee appointed to one of the annuitant
positions shall be disqualified immediately upon the
termination of his or her status as an annuitant receiving a
retirement annuity.
(h) Each trustee must take an oath of office before a
notary public of this State and shall qualify as a trustee upon
the presentation to the board of a certified copy of the oath.
The oath must state that the person will diligently and

09800SB1687ham002 - 62 - LRB098 07548 EFG 46686 a
honestly administer the affairs of the retirement system, and
will not knowingly violate or wilfully permit to be violated
any provisions of this Article.
Each trustee shall serve without compensation but shall be
reimbursed for expenses necessarily incurred in attending
board meetings and carrying out his or her duties as a trustee
or officer of the system.
(i) This amendatory Act of 1995 is intended to supersede
the changes made to this Section by Public Act 89-4.
(Source: P.A. 96-6, eff. 4-3-09; 96-1000, eff. 7-2-10.)
(40 ILCS 5/15-168.2)
Sec. 15-168.2. Audit of employers. Beginning August 1, 2014
2013, the System may audit the employment records and payroll
records of all employers. When the System audits an employer,
it shall specify the exact information it requires, which may
include but need not be limited to the names, titles, and
earnings history of every individual receiving compensation
from the employer. If an employer is audited by the System,
then the employer must provide to the System all necessary
documents and records within 60 calendar days after receiving
notification from the System. When the System audits an
employer, it shall send related correspondence by certified
mail.
(Source: P.A. 97-968, eff. 8-16-12.)

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(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of either a retirement annuity
calculated under Rule 1 of Section 15-136 (or subsection (c) or
(d) of Section 1-160 with respect to a benefit payable under
this System) or an automatic annual increase provided under
subsection (d) of Section 15-136 (or subsection (e) of Section
1-160 with respect to a benefit payable under this System) any
benefit provided under this Article, or an expansion of the
conditions of eligibility for any benefit under Section 15-135
(or subsection (c), (d), or (e) of Section 1-160 with respect
to a benefit payable under this System) this Article, that
results from an amendment to this Code that takes effect after
the effective date of this amendatory Act of the 98th 94th
General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) Beginning July 1, 2014, the State Actuary shall, within
6 months after the effective date of an amendatory Act that
amends or affects benefits under this Article, certify to the
System whether or not the amendatory Act is a new benefit

09800SB1687ham002 - 64 - LRB098 07548 EFG 46686 a
increase under this Section. If the State Actuary certifies to
the System that an amendatory Act is a new benefit increase
under this Section, the System shall notify each employer and
the General Assembly of the certification.
(d) If the State Actuary certifies that an amendatory Act
is a new benefit increase under this Section, the Board shall
either approve or deny the new benefit increase by resolution.
(e) If the Board approves a new benefit increase by
resolution, the Board shall develop and submit administrative
rules necessary to implement the new benefit increase to the
Joint Committee on Administrative Rules in a manner consistent
with the Illinois Administrative Procedure Act.
(f) If the Joint Committee on Administrative Rules does not
object to a proposed rule necessary to implement a new benefit
increase or if the Committee objects to such a rule but the
System modifies the proposed rule to meet the Committee's
objections, an employer under this Article may make an
irrevocable election to approve the new benefit increase by
resolution of the governing body of the employer. If the
employer is the State, the new benefit increase shall be deemed
approved without resolution, unless the amendatory Act
provides otherwise.
(g) A new benefit increase shall not apply to service of an
employee with an employer unless that employer has approved the
new benefit increase with respect to the employee's service
accrued with that employer. The approval of an employer cannot

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modify any of the terms of the new benefit increase, and the
employer's approval of or failure to approve the new benefit
increase applies to all participating employees of the
employer.
(h) No new benefit increase shall take effect for employees
of any employer unless the conditions of this Section are
satisfied. No new benefit increase shall take effect prior to
the July 1st at least 12 months following the conditions of
this Section being satisfied.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of the
Department of Financial and Professional Regulation. A new
benefit increase created by a Public Act that does not include
the additional funding required under this subsection is null
and void. If the Public Pension Division determines that the
additional funding provided for a new benefit increase under
this subsection is or has become inadequate, it may so certify
to the Governor and the State Comptroller and, in the absence

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of corrective action by the General Assembly, the new benefit
increase shall expire at the end of the fiscal year in which
the certification is made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including without limitation a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 94-4, eff. 6-1-05.)
Section 90. The State Mandates Act is amended by adding
Section 8.37 as follows:
(30 ILCS 805/8.37 new)
Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8

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of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 98th General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.".