Bill Text: IL SB1814 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that beginning in fiscal year 2019 and each year thereafter, the System shall calculate the projected amount of increase in benefits, expressed as a percentage of salary and reflecting separate amounts for Tier 1 and Tier 2 members, resulting from any increase in salary over the preceding school year, expressed as a percentage of salary. Provides that if the amount of a teacher's salary for any school year beginning on or after July 1, 2018 exceeds the member's annual full-time salary rate with the same employer for the previous school year, then the teacher's employer shall pay to the System the current value of the projected amount of the increase in benefits, as determined by the System and reflecting whether the teacher is a Tier 1 or Tier 2 member, resulting from the increase in the member's salary over the previous school year. Excludes earnings increases paid to members under contracts or collective bargaining agreements entered into, amended, or renewed before the effective date of the amendatory Act. Defines "Tier 1 member" and "Tier 2 member". Repeals the definition of "Tier 1 member" added by Public Act 98-599, which has been held unconstitutional. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2017-05-26 - Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments [SB1814 Detail]

Download: Illinois-2017-SB1814-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1814

Introduced 2/9/2017, by Sen. Mr. Dan McConchie

SYNOPSIS AS INTRODUCED:
40 ILCS 5/16-106.4a new
40 ILCS 5/16-106.4b new
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/16-106.4 rep.
30 ILCS 805/8.41 new

Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that beginning in fiscal year 2019 and each year thereafter, the System shall calculate the projected amount of increase in benefits, expressed as a percentage of salary and reflecting separate amounts for Tier 1 and Tier 2 members, resulting from any increase in salary over the preceding school year, expressed as a percentage of salary. Provides that if the amount of a teacher's salary for any school year beginning on or after July 1, 2018 exceeds the member's annual full-time salary rate with the same employer for the previous school year, then the teacher's employer shall pay to the System the current value of the projected amount of the increase in benefits, as determined by the System and reflecting whether the teacher is a Tier 1 or Tier 2 member, resulting from the increase in the member's salary over the previous school year. Excludes earnings increases paid to members under contracts or collective bargaining agreements entered into, amended, or renewed before the effective date of the amendatory Act. Defines "Tier 1 member" and "Tier 2 member". Repeals the definition of "Tier 1 member" added by Public Act 98-599, which has been held unconstitutional. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB100 08209 RPS 18306 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

SB1814LRB100 08209 RPS 18306 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by adding
5Sections 16-106.4a and 16-106.4b and by changing Section 16-158
6as follows:
7 (40 ILCS 5/16-106.4a new)
8 Sec. 16-106.4a. Tier 1 member. "Tier 1 member": A member
9under this Article who first became a member or participant
10before January 1, 2011 under any reciprocal retirement system
11or pension fund established under this Code other than a
12retirement system or pension fund established under Article 2,
133, 4, 5, 6, or 18 of this Code.
14 (40 ILCS 5/16-106.4b new)
15 Sec. 16-106.4b. Tier 2 member. "Tier 2 member": A member of
16the System who first becomes a member under this Article on or
17after January 1, 2011 and who is not a Tier 1 member.
18 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
19 (Text of Section WITHOUT the changes made by P.A. 98-599,
20which has been held unconstitutional)
21 Sec. 16-158. Contributions by State and other employing

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1units.
2 (a) The State shall make contributions to the System by
3means of appropriations from the Common School Fund and other
4State funds of amounts which, together with other employer
5contributions, employee contributions, investment income, and
6other income, will be sufficient to meet the cost of
7maintaining and administering the System on a 90% funded basis
8in accordance with actuarial recommendations.
9 The Board shall determine the amount of State contributions
10required for each fiscal year on the basis of the actuarial
11tables and other assumptions adopted by the Board and the
12recommendations of the actuary, using the formula in subsection
13(b-3).
14 (a-1) Annually, on or before November 15 until November 15,
152011, the Board shall certify to the Governor the amount of the
16required State contribution for the coming fiscal year. The
17certification under this subsection (a-1) shall include a copy
18of the actuarial recommendations upon which it is based and
19shall specifically identify the System's projected State
20normal cost for that fiscal year.
21 On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking
24into account the amounts appropriated to and received by the
25System under subsection (d) of Section 7.2 of the General
26Obligation Bond Act.

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1 On or before July 1, 2005, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2006, taking
4into account the changes in required State contributions made
5by this amendatory Act of the 94th General Assembly.
6 On or before April 1, 2011, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2011, applying
9the changes made by Public Act 96-889 to the System's assets
10and liabilities as of June 30, 2009 as though Public Act 96-889
11was approved on that date.
12 (a-5) On or before November 1 of each year, beginning
13November 1, 2012, the Board shall submit to the State Actuary,
14the Governor, and the General Assembly a proposed certification
15of the amount of the required State contribution to the System
16for the next fiscal year, along with all of the actuarial
17assumptions, calculations, and data upon which that proposed
18certification is based. On or before January 1 of each year,
19beginning January 1, 2013, the State Actuary shall issue a
20preliminary report concerning the proposed certification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. On or before
24January 15, 2013 and each January 15 thereafter, the Board
25shall certify to the Governor and the General Assembly the
26amount of the required State contribution for the next fiscal

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1year. The Board's certification must note any deviations from
2the State Actuary's recommended changes, the reason or reasons
3for not following the State Actuary's recommended changes, and
4the fiscal impact of not following the State Actuary's
5recommended changes on the required State contribution.
6 (b) Through State fiscal year 1995, the State contributions
7shall be paid to the System in accordance with Section 18-7 of
8the School Code.
9 (b-1) Beginning in State fiscal year 1996, on the 15th day
10of each month, or as soon thereafter as may be practicable, the
11Board shall submit vouchers for payment of State contributions
12to the System, in a total monthly amount of one-twelfth of the
13required annual State contribution certified under subsection
14(a-1). From the effective date of this amendatory Act of the
1593rd General Assembly through June 30, 2004, the Board shall
16not submit vouchers for the remainder of fiscal year 2004 in
17excess of the fiscal year 2004 certified contribution amount
18determined under this Section after taking into consideration
19the transfer to the System under subsection (a) of Section
206z-61 of the State Finance Act. These vouchers shall be paid by
21the State Comptroller and Treasurer by warrants drawn on the
22funds appropriated to the System for that fiscal year.
23 If in any month the amount remaining unexpended from all
24other appropriations to the System for the applicable fiscal
25year (including the appropriations to the System under Section
268.12 of the State Finance Act and Section 1 of the State

SB1814- 5 -LRB100 08209 RPS 18306 b
1Pension Funds Continuing Appropriation Act) is less than the
2amount lawfully vouchered under this subsection, the
3difference shall be paid from the Common School Fund under the
4continuing appropriation authority provided in Section 1.1 of
5the State Pension Funds Continuing Appropriation Act.
6 (b-2) Allocations from the Common School Fund apportioned
7to school districts not coming under this System shall not be
8diminished or affected by the provisions of this Article.
9 (b-3) For State fiscal years 2012 through 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19 For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section; except that in the
24following specified State fiscal years, the State contribution
25to the System shall not be less than the following indicated
26percentages of the applicable employee payroll, even if the

SB1814- 6 -LRB100 08209 RPS 18306 b
1indicated percentage will produce a State contribution in
2excess of the amount otherwise required under this subsection
3and subsection (a), and notwithstanding any contrary
4certification made under subsection (a-1) before the effective
5date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
6in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
72003; and 13.56% in FY 2004.
8 Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2006 is
10$534,627,700.
11 Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2007 is
13$738,014,500.
14 For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20 Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2010 is
22$2,089,268,000 and shall be made from the proceeds of bonds
23sold in fiscal year 2010 pursuant to Section 7.2 of the General
24Obligation Bond Act, less (i) the pro rata share of bond sale
25expenses determined by the System's share of total bond
26proceeds, (ii) any amounts received from the Common School Fund

SB1814- 7 -LRB100 08209 RPS 18306 b
1in fiscal year 2010, and (iii) any reduction in bond proceeds
2due to the issuance of discounted bonds, if applicable.
3 Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2011 is
5the amount recertified by the System on or before April 1, 2011
6pursuant to subsection (a-1) of this Section and shall be made
7from the proceeds of bonds sold in fiscal year 2011 pursuant to
8Section 7.2 of the General Obligation Bond Act, less (i) the
9pro rata share of bond sale expenses determined by the System's
10share of total bond proceeds, (ii) any amounts received from
11the Common School Fund in fiscal year 2011, and (iii) any
12reduction in bond proceeds due to the issuance of discounted
13bonds, if applicable. This amount shall include, in addition to
14the amount certified by the System, an amount necessary to meet
15employer contributions required by the State as an employer
16under paragraph (e) of this Section, which may also be used by
17the System for contributions required by paragraph (a) of
18Section 16-127.
19 Beginning in State fiscal year 2046, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 90% of the total
22actuarial liabilities of the System.
23 Amounts received by the System pursuant to Section 25 of
24the Budget Stabilization Act or Section 8.12 of the State
25Finance Act in any fiscal year do not reduce and do not
26constitute payment of any portion of the minimum State

SB1814- 8 -LRB100 08209 RPS 18306 b
1contribution required under this Article in that fiscal year.
2Such amounts shall not reduce, and shall not be included in the
3calculation of, the required State contributions under this
4Article in any future year until the System has reached a
5funding ratio of at least 90%. A reference in this Article to
6the "required State contribution" or any substantially similar
7term does not include or apply to any amounts payable to the
8System under Section 25 of the Budget Stabilization Act.
9 Notwithstanding any other provision of this Section, the
10required State contribution for State fiscal year 2005 and for
11fiscal year 2008 and each fiscal year thereafter, as calculated
12under this Section and certified under subsection (a-1), shall
13not exceed an amount equal to (i) the amount of the required
14State contribution that would have been calculated under this
15Section for that fiscal year if the System had not received any
16payments under subsection (d) of Section 7.2 of the General
17Obligation Bond Act, minus (ii) the portion of the State's
18total debt service payments for that fiscal year on the bonds
19issued in fiscal year 2003 for the purposes of that Section
207.2, as determined and certified by the Comptroller, that is
21the same as the System's portion of the total moneys
22distributed under subsection (d) of Section 7.2 of the General
23Obligation Bond Act. In determining this maximum for State
24fiscal years 2008 through 2010, however, the amount referred to
25in item (i) shall be increased, as a percentage of the
26applicable employee payroll, in equal increments calculated

SB1814- 9 -LRB100 08209 RPS 18306 b
1from the sum of the required State contribution for State
2fiscal year 2007 plus the applicable portion of the State's
3total debt service payments for fiscal year 2007 on the bonds
4issued in fiscal year 2003 for the purposes of Section 7.2 of
5the General Obligation Bond Act, so that, by State fiscal year
62011, the State is contributing at the rate otherwise required
7under this Section.
8 (c) Payment of the required State contributions and of all
9pensions, retirement annuities, death benefits, refunds, and
10other benefits granted under or assumed by this System, and all
11expenses in connection with the administration and operation
12thereof, are obligations of the State.
13 If members are paid from special trust or federal funds
14which are administered by the employing unit, whether school
15district or other unit, the employing unit shall pay to the
16System from such funds the full accruing retirement costs based
17upon that service, which, beginning July 1, 2014, shall be at a
18rate, expressed as a percentage of salary, equal to the total
19minimum contribution to the System to be made by the State for
20that fiscal year, including both normal cost and unfunded
21liability components, expressed as a percentage of payroll, as
22determined by the System under subsection (b-3) of this
23Section. Employer contributions, based on salary paid to
24members from federal funds, may be forwarded by the
25distributing agency of the State of Illinois to the System
26prior to allocation, in an amount determined in accordance with

SB1814- 10 -LRB100 08209 RPS 18306 b
1guidelines established by such agency and the System. Any
2contribution for fiscal year 2015 collected as a result of the
3change made by this amendatory Act of the 98th General Assembly
4shall be considered a State contribution under subsection (b-3)
5of this Section.
6 (d) Effective July 1, 1986, any employer of a teacher as
7defined in paragraph (8) of Section 16-106 shall pay the
8employer's normal cost of benefits based upon the teacher's
9service, in addition to employee contributions, as determined
10by the System. Such employer contributions shall be forwarded
11monthly in accordance with guidelines established by the
12System.
13 However, with respect to benefits granted under Section
1416-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
15of Section 16-106, the employer's contribution shall be 12%
16(rather than 20%) of the member's highest annual salary rate
17for each year of creditable service granted, and the employer
18shall also pay the required employee contribution on behalf of
19the teacher. For the purposes of Sections 16-133.4 and
2016-133.5, a teacher as defined in paragraph (8) of Section
2116-106 who is serving in that capacity while on leave of
22absence from another employer under this Article shall not be
23considered an employee of the employer from which the teacher
24is on leave.
25 (e) Beginning July 1, 1998, every employer of a teacher
26shall pay to the System an employer contribution computed as

SB1814- 11 -LRB100 08209 RPS 18306 b
1follows:
2 (1) Beginning July 1, 1998 through June 30, 1999, the
3 employer contribution shall be equal to 0.3% of each
4 teacher's salary.
5 (2) Beginning July 1, 1999 and thereafter, the employer
6 contribution shall be equal to 0.58% of each teacher's
7 salary.
8The school district or other employing unit may pay these
9employer contributions out of any source of funding available
10for that purpose and shall forward the contributions to the
11System on the schedule established for the payment of member
12contributions.
13 These employer contributions are intended to offset a
14portion of the cost to the System of the increases in
15retirement benefits resulting from this amendatory Act of 1998.
16 Each employer of teachers is entitled to a credit against
17the contributions required under this subsection (e) with
18respect to salaries paid to teachers for the period January 1,
192002 through June 30, 2003, equal to the amount paid by that
20employer under subsection (a-5) of Section 6.6 of the State
21Employees Group Insurance Act of 1971 with respect to salaries
22paid to teachers for that period.
23 The additional 1% employee contribution required under
24Section 16-152 by this amendatory Act of 1998 is the
25responsibility of the teacher and not the teacher's employer,
26unless the employer agrees, through collective bargaining or

SB1814- 12 -LRB100 08209 RPS 18306 b
1otherwise, to make the contribution on behalf of the teacher.
2 If an employer is required by a contract in effect on May
31, 1998 between the employer and an employee organization to
4pay, on behalf of all its full-time employees covered by this
5Article, all mandatory employee contributions required under
6this Article, then the employer shall be excused from paying
7the employer contribution required under this subsection (e)
8for the balance of the term of that contract. The employer and
9the employee organization shall jointly certify to the System
10the existence of the contractual requirement, in such form as
11the System may prescribe. This exclusion shall cease upon the
12termination, extension, or renewal of the contract at any time
13after May 1, 1998.
14 (f) If the amount of a teacher's salary for any school year
15beginning on or after June 1, 2005 and before July 1, 2018 used
16to determine final average salary exceeds the member's annual
17full-time salary rate with the same employer for the previous
18school year by more than 6%, the teacher's employer shall pay
19to the System, in addition to all other payments required under
20this Section and in accordance with guidelines established by
21the System, the present value of the increase in benefits
22resulting from the portion of the increase in salary that is in
23excess of 6%. This present value shall be computed by the
24System on the basis of the actuarial assumptions and tables
25used in the most recent actuarial valuation of the System that
26is available at the time of the computation. If a teacher's

SB1814- 13 -LRB100 08209 RPS 18306 b
1salary for the 2005-2006 school year is used to determine final
2average salary under this subsection (f), then the changes made
3to this subsection (f) by Public Act 94-1057 shall apply in
4calculating whether the increase in his or her salary is in
5excess of 6%. For the purposes of this Section, change in
6employment under Section 10-21.12 of the School Code on or
7after June 1, 2005 shall constitute a change in employer. The
8System may require the employer to provide any pertinent
9information or documentation. The changes made to this
10subsection (f) by this amendatory Act of the 94th General
11Assembly apply without regard to whether the teacher was in
12service on or after its effective date.
13 Whenever it determines that a payment is or may be required
14under this subsection, the System shall calculate the amount of
15the payment and bill the employer for that amount. The bill
16shall specify the calculations used to determine the amount
17due. If the employer disputes the amount of the bill, it may,
18within 30 days after receipt of the bill, apply to the System
19in writing for a recalculation. The application must specify in
20detail the grounds of the dispute and, if the employer asserts
21that the calculation is subject to subsection (g) or (h) of
22this Section, must include an affidavit setting forth and
23attesting to all facts within the employer's knowledge that are
24pertinent to the applicability of that subsection. Upon
25receiving a timely application for recalculation, the System
26shall review the application and, if appropriate, recalculate

SB1814- 14 -LRB100 08209 RPS 18306 b
1the amount due.
2 The employer contributions required under this subsection
3(f) may be paid in the form of a lump sum within 90 days after
4receipt of the bill. If the employer contributions are not paid
5within 90 days after receipt of the bill, then interest will be
6charged at a rate equal to the System's annual actuarially
7assumed rate of return on investment compounded annually from
8the 91st day after receipt of the bill. Payments must be
9concluded within 3 years after the employer's receipt of the
10bill.
11 (f-1) Beginning in fiscal year 2019 and for each fiscal
12year thereafter, the System shall calculate the projected
13amount of increase in benefits, expressed as a percentage of
14salary and reflecting separate amounts for Tier 1 members and
15Tier 2 members, resulting from any increase in salary over the
16preceding school year, expressed as a percentage of salary. If
17the amount of a teacher's salary for any school year beginning
18on or after July 1, 2018 exceeds the member's annual full-time
19salary rate with the same employer for the previous school
20year, then the teacher's employer shall pay to the System the
21current value of the projected amount of the increase in
22benefits, as determined by the System and reflecting whether
23the teacher is a Tier 1 member or Tier 2 member, resulting from
24the increase in the member's salary over the previous school
25year. The System may require the employer to provide any
26pertinent information or documentation.

SB1814- 15 -LRB100 08209 RPS 18306 b
1 Whenever it determines that a payment is or may be required
2under this subsection (f-1), the System shall calculate the
3amount of the payment and bill the employer for that amount.
4The bill shall specify the calculations used to determine the
5amount due. If the employer disputes the amount of the bill, it
6may, within 30 days after receipt of the bill, apply to the
7System in writing for a recalculation. The application must
8specify in detail the grounds of the dispute and, if the
9employer asserts that the calculation is subject to subsection
10(h-1) of this Section, must include an affidavit setting forth
11and attesting to all facts within the employer's knowledge that
12are pertinent to the applicability of subsection (h-1). Upon
13receiving a timely application for recalculation, the System
14shall review the application and, if appropriate, recalculate
15the amount due.
16 The employer contributions required under this subsection
17(f-1) may be paid in the form of a lump sum within 90 days after
18receipt of the bill. If the employer contributions are not paid
19within 90 days after receipt of the bill, then interest shall
20be charged at a rate equal to the System's annual actuarially
21assumed rate of return on investment compounded annually from
22the 91st day after receipt of the bill. Payments must be
23concluded within 3 years after the employer's receipt of the
24bill.
25 (g) This subsection (g) applies only to payments made or
26salary increases given on or after June 1, 2005 but before July

SB1814- 16 -LRB100 08209 RPS 18306 b
11, 2011. The changes made by Public Act 94-1057 shall not
2require the System to refund any payments received before July
331, 2006 (the effective date of Public Act 94-1057).
4 When assessing payment for any amount due under subsection
5(f), the System shall exclude salary increases paid to teachers
6under contracts or collective bargaining agreements entered
7into, amended, or renewed before June 1, 2005.
8 When assessing payment for any amount due under subsection
9(f), the System shall exclude salary increases paid to a
10teacher at a time when the teacher is 10 or more years from
11retirement eligibility under Section 16-132 or 16-133.2.
12 When assessing payment for any amount due under subsection
13(f), the System shall exclude salary increases resulting from
14overload work, including summer school, when the school
15district has certified to the System, and the System has
16approved the certification, that (i) the overload work is for
17the sole purpose of classroom instruction in excess of the
18standard number of classes for a full-time teacher in a school
19district during a school year and (ii) the salary increases are
20equal to or less than the rate of pay for classroom instruction
21computed on the teacher's current salary and work schedule.
22 When assessing payment for any amount due under subsection
23(f), the System shall exclude a salary increase resulting from
24a promotion (i) for which the employee is required to hold a
25certificate or supervisory endorsement issued by the State
26Teacher Certification Board that is a different certification

SB1814- 17 -LRB100 08209 RPS 18306 b
1or supervisory endorsement than is required for the teacher's
2previous position and (ii) to a position that has existed and
3been filled by a member for no less than one complete academic
4year and the salary increase from the promotion is an increase
5that results in an amount no greater than the lesser of the
6average salary paid for other similar positions in the district
7requiring the same certification or the amount stipulated in
8the collective bargaining agreement for a similar position
9requiring the same certification.
10 When assessing payment for any amount due under subsection
11(f), the System shall exclude any payment to the teacher from
12the State of Illinois or the State Board of Education over
13which the employer does not have discretion, notwithstanding
14that the payment is included in the computation of final
15average salary.
16 (h) When assessing payment for any amount due under
17subsection (f), the System shall exclude any salary increase
18described in subsection (g) of this Section given on or after
19July 1, 2011 but before July 1, 2014 under a contract or
20collective bargaining agreement entered into, amended, or
21renewed on or after June 1, 2005 but before July 1, 2011.
22Notwithstanding any other provision of this Section, any
23payments made or salary increases given after June 30, 2014
24shall be used in assessing payment for any amount due under
25subsection (f) of this Section.
26 (h-1) When assessing payment for any amount due under

SB1814- 18 -LRB100 08209 RPS 18306 b
1subsection (f-1), the System shall exclude earnings increases
2paid to members under contracts or collective bargaining
3agreements entered into, amended, or renewed before the
4effective date of this amendatory Act of the 100th General
5Assembly.
6 (i) The System shall prepare a report and file copies of
7the report with the Governor and the General Assembly by
8January 1, 2007 that contains all of the following information:
9 (1) The number of recalculations required by the
10 changes made to this Section by Public Act 94-1057 for each
11 employer.
12 (2) The dollar amount by which each employer's
13 contribution to the System was changed due to
14 recalculations required by Public Act 94-1057.
15 (3) The total amount the System received from each
16 employer as a result of the changes made to this Section by
17 Public Act 94-4.
18 (4) The increase in the required State contribution
19 resulting from the changes made to this Section by Public
20 Act 94-1057.
21 (j) For purposes of determining the required State
22contribution to the System, the value of the System's assets
23shall be equal to the actuarial value of the System's assets,
24which shall be calculated as follows:
25 As of June 30, 2008, the actuarial value of the System's
26assets shall be equal to the market value of the assets as of

SB1814- 19 -LRB100 08209 RPS 18306 b
1that date. In determining the actuarial value of the System's
2assets for fiscal years after June 30, 2008, any actuarial
3gains or losses from investment return incurred in a fiscal
4year shall be recognized in equal annual amounts over the
55-year period following that fiscal year.
6 (k) For purposes of determining the required State
7contribution to the system for a particular year, the actuarial
8value of assets shall be assumed to earn a rate of return equal
9to the system's actuarially assumed rate of return.
10(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1196-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
126-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
13 (40 ILCS 5/16-106.4 rep.)
14 Section 10. The Illinois Pension Code is amended by
15repealing Section 16-106.4.
16 Section 90. The State Mandates Act is amended by adding
17Section 8.41 as follows:
18 (30 ILCS 805/8.41 new)
19 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
20of this Act, no reimbursement by the State is required for the
21implementation of any mandate created by this amendatory Act of
22the 100th General Assembly.
23 Section 99. Effective date. This Act takes effect upon

SB1814- 20 -LRB100 08209 RPS 18306 b
1becoming law.
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