Bill Text: IL SB2145 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Pension Code. In a provision of the State Universities Article that requires an employer to make an additional contribution to the System for certain earnings increases greater than 3%, excludes earnings increases paid to a participant when the participant is 10 or more years from retirement eligibility under specified provisions and earnings increases resulting from overload work or a promotion if certain requirements are met. Provides that the exclusions apply only to payments made or salary increases given in academic years beginning on or after July 1, 2018 and that the changes made by the amendatory Act shall not require the System to refund any payment received before the effective date of the amendatory Act. In a provision of the Downstate Teacher Article that requires an employer to make an additional contribution to the System for certain salary increases greater than 3%, excludes (i) salary increases paid to a teacher when the teacher is 10 or more years from retirement eligibility under specified provisions, (ii) salary increases resulting from overload work or a promotion if certain requirements are met, and (iii) payments from the State or the State Board of Education over which the employer does not have discretion. Provides that the exclusions apply only to payments made or salary increases given in school years beginning on or after July 1, 2018 and that the changes made by the amendatory Act shall not require the System to refund any payment received before the effective date of the amendatory Act. Makes conforming changes. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB2145 Detail]
Download: Illinois-2019-SB2145-Introduced.html
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | AN ACT concerning public employee benefits.
| ||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Sections 15-155 and 16-158 as follows:
| ||||||||||||||||||||||||||
6 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||||||||||||||||||||||
7 | Sec. 15-155. Employer contributions.
| ||||||||||||||||||||||||||
8 | (a) The State of Illinois shall make contributions by | ||||||||||||||||||||||||||
9 | appropriations of
amounts which, together with the other | ||||||||||||||||||||||||||
10 | employer contributions from trust,
federal, and other funds, | ||||||||||||||||||||||||||
11 | employee contributions, income from investments,
and other | ||||||||||||||||||||||||||
12 | income of this System, will be sufficient to meet the cost of
| ||||||||||||||||||||||||||
13 | maintaining and administering the System on a 90% funded basis | ||||||||||||||||||||||||||
14 | in accordance
with actuarial recommendations.
| ||||||||||||||||||||||||||
15 | The Board shall determine the amount of State contributions | ||||||||||||||||||||||||||
16 | required for
each fiscal year on the basis of the actuarial | ||||||||||||||||||||||||||
17 | tables and other assumptions
adopted by the Board and the | ||||||||||||||||||||||||||
18 | recommendations of the actuary, using the formula
in subsection | ||||||||||||||||||||||||||
19 | (a-1).
| ||||||||||||||||||||||||||
20 | (a-1) For State fiscal years 2012 through 2045, the minimum | ||||||||||||||||||||||||||
21 | contribution
to the System to be made by the State for each | ||||||||||||||||||||||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||||||||||||||||||||||
23 | sufficient to bring the total assets of the
System up to 90% of |
| |||||||
| |||||||
1 | the total actuarial liabilities of the System by the end of
| ||||||
2 | State fiscal year 2045. In making these determinations, the | ||||||
3 | required State
contribution shall be calculated each year as a | ||||||
4 | level percentage of payroll
over the years remaining to and | ||||||
5 | including fiscal year 2045 and shall be
determined under the | ||||||
6 | projected unit credit actuarial cost method.
| ||||||
7 | For each of State fiscal years 2018, 2019, and 2020, the | ||||||
8 | State shall make an additional contribution to the System equal | ||||||
9 | to 2% of the total payroll of each employee who is deemed to | ||||||
10 | have elected the benefits under Section 1-161 or who has made | ||||||
11 | the election under subsection (c) of Section 1-161. | ||||||
12 | A change in an actuarial or investment assumption that | ||||||
13 | increases or
decreases the required State contribution and | ||||||
14 | first
applies in State fiscal year 2018 or thereafter shall be
| ||||||
15 | implemented in equal annual amounts over a 5-year period
| ||||||
16 | beginning in the State fiscal year in which the actuarial
| ||||||
17 | change first applies to the required State contribution. | ||||||
18 | A change in an actuarial or investment assumption that | ||||||
19 | increases or
decreases the required State contribution and | ||||||
20 | first
applied to the State contribution in fiscal year 2014, | ||||||
21 | 2015, 2016, or 2017 shall be
implemented: | ||||||
22 | (i) as already applied in State fiscal years before | ||||||
23 | 2018; and | ||||||
24 | (ii) in the portion of the 5-year period beginning in | ||||||
25 | the State fiscal year in which the actuarial
change first | ||||||
26 | applied that occurs in State fiscal year 2018 or |
| |||||||
| |||||||
1 | thereafter, by calculating the change in equal annual | ||||||
2 | amounts over that 5-year period and then implementing it at | ||||||
3 | the resulting annual rate in each of the remaining fiscal | ||||||
4 | years in that 5-year period. | ||||||
5 | For State fiscal years 1996 through 2005, the State | ||||||
6 | contribution to
the System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be
increased in equal annual increments | ||||||
8 | so that by State fiscal year 2011, the
State is contributing at | ||||||
9 | the rate required under this Section.
| ||||||
10 | Notwithstanding any other provision of this Article, the | ||||||
11 | total required State
contribution for State fiscal year 2006 is | ||||||
12 | $166,641,900.
| ||||||
13 | Notwithstanding any other provision of this Article, the | ||||||
14 | total required State
contribution for State fiscal year 2007 is | ||||||
15 | $252,064,100.
| ||||||
16 | For each of State fiscal years 2008 through 2009, the State | ||||||
17 | contribution to
the System, as a percentage of the applicable | ||||||
18 | employee payroll, shall be
increased in equal annual increments | ||||||
19 | from the required State contribution for State fiscal year | ||||||
20 | 2007, so that by State fiscal year 2011, the
State is | ||||||
21 | contributing at the rate otherwise required under this Section.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State contribution for State fiscal year 2010 is | ||||||
24 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
25 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
26 | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
| |||||||
| |||||||
1 | share of bond sale expenses determined by the System's share of | ||||||
2 | total bond proceeds, (ii) any amounts received from the General | ||||||
3 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
4 | proceeds due to the issuance of discounted bonds, if | ||||||
5 | applicable. | ||||||
6 | Notwithstanding any other provision of this Article, the
| ||||||
7 | total required State contribution for State fiscal year 2011 is
| ||||||
8 | the amount recertified by the System on or before April 1, 2011 | ||||||
9 | pursuant to Section 15-165 and shall be made from the State | ||||||
10 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
11 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
12 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
13 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
14 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
15 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
16 | discounted bonds, if
applicable. | ||||||
17 | Beginning in State fiscal year 2046, the minimum State | ||||||
18 | contribution for
each fiscal year shall be the amount needed to | ||||||
19 | maintain the total assets of
the System at 90% of the total | ||||||
20 | actuarial liabilities of the System.
| ||||||
21 | Amounts received by the System pursuant to Section 25 of | ||||||
22 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
23 | Finance Act in any fiscal year do not reduce and do not | ||||||
24 | constitute payment of any portion of the minimum State | ||||||
25 | contribution required under this Article in that fiscal year. | ||||||
26 | Such amounts shall not reduce, and shall not be included in the |
| |||||||
| |||||||
1 | calculation of, the required State contributions under this | ||||||
2 | Article in any future year until the System has reached a | ||||||
3 | funding ratio of at least 90%. A reference in this Article to | ||||||
4 | the "required State contribution" or any substantially similar | ||||||
5 | term does not include or apply to any amounts payable to the | ||||||
6 | System under Section 25 of the Budget Stabilization Act. | ||||||
7 | Notwithstanding any other provision of this Section, the | ||||||
8 | required State
contribution for State fiscal year 2005 and for | ||||||
9 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
10 | under this Section and
certified under Section 15-165, shall | ||||||
11 | not exceed an amount equal to (i) the
amount of the required | ||||||
12 | State contribution that would have been calculated under
this | ||||||
13 | Section for that fiscal year if the System had not received any | ||||||
14 | payments
under subsection (d) of Section 7.2 of the General | ||||||
15 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
16 | total debt service payments for that fiscal
year on the bonds | ||||||
17 | issued in fiscal year 2003 for the purposes of that Section | ||||||
18 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
19 | the same as the System's portion of
the total moneys | ||||||
20 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
21 | Obligation Bond Act. In determining this maximum for State | ||||||
22 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
23 | in item (i) shall be increased, as a percentage of the | ||||||
24 | applicable employee payroll, in equal increments calculated | ||||||
25 | from the sum of the required State contribution for State | ||||||
26 | fiscal year 2007 plus the applicable portion of the State's |
| |||||||
| |||||||
1 | total debt service payments for fiscal year 2007 on the bonds | ||||||
2 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
3 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
4 | 2011, the
State is contributing at the rate otherwise required | ||||||
5 | under this Section.
| ||||||
6 | (a-2) Beginning in fiscal year 2018, each employer under | ||||||
7 | this Article shall pay to the System a required contribution | ||||||
8 | determined as a percentage of projected payroll and sufficient | ||||||
9 | to produce an annual amount equal to: | ||||||
10 | (i) for each of fiscal years 2018, 2019, and 2020, the | ||||||
11 | defined benefit normal cost of the defined benefit plan, | ||||||
12 | less the employee contribution, for each employee of that | ||||||
13 | employer who has elected or who is deemed to have elected | ||||||
14 | the benefits under Section 1-161 or who has made the | ||||||
15 | election under subsection (c) of Section 1-161; for fiscal | ||||||
16 | year 2021 and each fiscal year thereafter, the defined | ||||||
17 | benefit normal cost of the defined benefit plan, less the | ||||||
18 | employee contribution, plus 2%, for each employee of that | ||||||
19 | employer who has elected or who is deemed to have elected | ||||||
20 | the benefits under Section 1-161 or who has made the | ||||||
21 | election under subsection (c) of Section 1-161; plus | ||||||
22 | (ii) the amount required for that fiscal year to | ||||||
23 | amortize any unfunded actuarial accrued liability | ||||||
24 | associated with the present value of liabilities | ||||||
25 | attributable to the employer's account under Section | ||||||
26 | 15-155.2, determined
as a level percentage of payroll over |
| |||||||
| |||||||
1 | a 30-year rolling amortization period. | ||||||
2 | In determining contributions required under item (i) of | ||||||
3 | this subsection, the System shall determine an aggregate rate | ||||||
4 | for all employers, expressed as a percentage of projected | ||||||
5 | payroll. | ||||||
6 | In determining the contributions required under item (ii) | ||||||
7 | of this subsection, the amount shall be computed by the System | ||||||
8 | on the basis of the actuarial assumptions and tables used in | ||||||
9 | the most recent actuarial valuation of the System that is | ||||||
10 | available at the time of the computation. | ||||||
11 | The contributions required under this subsection (a-2) | ||||||
12 | shall be paid by an employer concurrently with that employer's | ||||||
13 | payroll payment period. The State, as the actual employer of an | ||||||
14 | employee, shall make the required contributions under this | ||||||
15 | subsection. | ||||||
16 | As used in this subsection, "academic year" means the | ||||||
17 | 12-month period beginning September 1. | ||||||
18 | (b) If an employee is paid from trust or federal funds, the | ||||||
19 | employer
shall pay to the Board contributions from those funds | ||||||
20 | which are
sufficient to cover the accruing normal costs on | ||||||
21 | behalf of the employee.
However, universities having employees | ||||||
22 | who are compensated out of local
auxiliary funds, income funds, | ||||||
23 | or service enterprise funds are not required
to pay such | ||||||
24 | contributions on behalf of those employees. The local auxiliary
| ||||||
25 | funds, income funds, and service enterprise funds of | ||||||
26 | universities shall not be
considered trust funds for the |
| |||||||
| |||||||
1 | purpose of this Article, but funds of alumni
associations, | ||||||
2 | foundations, and athletic associations which are affiliated | ||||||
3 | with
the universities included as employers under this Article | ||||||
4 | and other employers
which do not receive State appropriations | ||||||
5 | are considered to be trust funds for
the purpose of this | ||||||
6 | Article.
| ||||||
7 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
8 | each make
employer contributions to this System for their | ||||||
9 | respective firefighter
employees who participate in this | ||||||
10 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
11 | of contributions to be made by those municipalities shall
be | ||||||
12 | determined annually by the Board on the basis of the actuarial | ||||||
13 | assumptions
adopted by the Board and the recommendations of the | ||||||
14 | actuary, and shall be
expressed as a percentage of salary for | ||||||
15 | each such employee. The Board shall
certify the rate to the | ||||||
16 | affected municipalities as soon as may be practical.
The | ||||||
17 | employer contributions required under this subsection shall be | ||||||
18 | remitted by
the municipality to the System at the same time and | ||||||
19 | in the same manner as
employee contributions.
| ||||||
20 | (c) Through State fiscal year 1995: The total employer | ||||||
21 | contribution shall
be apportioned among the various funds of | ||||||
22 | the State and other employers,
whether trust, federal, or other | ||||||
23 | funds, in accordance with actuarial procedures
approved by the | ||||||
24 | Board. State of Illinois contributions for employers receiving
| ||||||
25 | State appropriations for personal services shall be payable | ||||||
26 | from appropriations
made to the employers or to the System. The |
| |||||||
| |||||||
1 | contributions for Class I
community colleges covering earnings | ||||||
2 | other than those paid from trust and
federal funds, shall be | ||||||
3 | payable solely from appropriations to the Illinois
Community | ||||||
4 | College Board or the System for employer contributions.
| ||||||
5 | (d) Beginning in State fiscal year 1996, the required State | ||||||
6 | contributions
to the System shall be appropriated directly to | ||||||
7 | the System and shall be payable
through vouchers issued in | ||||||
8 | accordance with subsection (c) of Section 15-165, except as | ||||||
9 | provided in subsection (g).
| ||||||
10 | (e) The State Comptroller shall draw warrants payable to | ||||||
11 | the System upon
proper certification by the System or by the | ||||||
12 | employer in accordance with the
appropriation laws and this | ||||||
13 | Code.
| ||||||
14 | (f) Normal costs under this Section means liability for
| ||||||
15 | pensions and other benefits which accrues to the System because | ||||||
16 | of the
credits earned for service rendered by the participants | ||||||
17 | during the
fiscal year and expenses of administering the | ||||||
18 | System, but shall not
include the principal of or any | ||||||
19 | redemption premium or interest on any bonds
issued by the Board | ||||||
20 | or any expenses incurred or deposits required in
connection | ||||||
21 | therewith.
| ||||||
22 | (g) For academic years beginning on or after June 1, 2005 | ||||||
23 | and before July 1, 2018 and for earnings paid to a participant | ||||||
24 | under a contract or collective bargaining agreement entered | ||||||
25 | into, amended, or renewed before June 4, 2018 ( the effective | ||||||
26 | date of Public Act 100-587) this amendatory Act of the 100th |
| |||||||
| |||||||
1 | General Assembly , if the amount of a participant's earnings for | ||||||
2 | any academic year used to determine the final rate of earnings, | ||||||
3 | determined on a full-time equivalent basis, exceeds the amount | ||||||
4 | of his or her earnings with the same employer for the previous | ||||||
5 | academic year, determined on a full-time equivalent basis, by | ||||||
6 | more than 6%, the participant's employer shall pay to the | ||||||
7 | System, in addition to all other payments required under this | ||||||
8 | Section and in accordance with guidelines established by the | ||||||
9 | System, the present value of the increase in benefits resulting | ||||||
10 | from the portion of the increase in earnings that is in excess | ||||||
11 | of 6%. This present value shall be computed by the System on | ||||||
12 | the basis of the actuarial assumptions and tables used in the | ||||||
13 | most recent actuarial valuation of the System that is available | ||||||
14 | at the time of the computation. The System may require the | ||||||
15 | employer to provide any pertinent information or | ||||||
16 | documentation. | ||||||
17 | Whenever it determines that a payment is or may be required | ||||||
18 | under this subsection (g), the System shall calculate the | ||||||
19 | amount of the payment and bill the employer for that amount. | ||||||
20 | The bill shall specify the calculations used to determine the | ||||||
21 | amount due. If the employer disputes the amount of the bill, it | ||||||
22 | may, within 30 days after receipt of the bill, apply to the | ||||||
23 | System in writing for a recalculation. The application must | ||||||
24 | specify in detail the grounds of the dispute and, if the | ||||||
25 | employer asserts that the calculation is subject to subsection | ||||||
26 | (h) or (i) of this Section or that subsection (g-1) applies, |
| |||||||
| |||||||
1 | must include an affidavit setting forth and attesting to all | ||||||
2 | facts within the employer's knowledge that are pertinent to the | ||||||
3 | applicability of that subsection. Upon receiving a timely | ||||||
4 | application for recalculation, the System shall review the | ||||||
5 | application and, if appropriate, recalculate the amount due.
| ||||||
6 | The employer contributions required under this subsection | ||||||
7 | (g) may be paid in the form of a lump sum within 90 days after | ||||||
8 | receipt of the bill. If the employer contributions are not paid | ||||||
9 | within 90 days after receipt of the bill, then interest will be | ||||||
10 | charged at a rate equal to the System's annual actuarially | ||||||
11 | assumed rate of return on investment compounded annually from | ||||||
12 | the 91st day after receipt of the bill. Payments must be | ||||||
13 | concluded within 3 years after the employer's receipt of the | ||||||
14 | bill. | ||||||
15 | When assessing payment for any amount due under this | ||||||
16 | subsection (g), the System shall include earnings, to the | ||||||
17 | extent not established by a participant under Section 15-113.11 | ||||||
18 | or 15-113.12, that would have been paid to the participant had | ||||||
19 | the participant not taken (i) periods of voluntary or | ||||||
20 | involuntary furlough occurring on or after July 1, 2015 and on | ||||||
21 | or before June 30, 2017 or (ii) periods of voluntary pay | ||||||
22 | reduction in lieu of furlough occurring on or after July 1, | ||||||
23 | 2015 and on or before June 30, 2017. Determining earnings that | ||||||
24 | would have been paid to a participant had the participant not | ||||||
25 | taken periods of voluntary or involuntary furlough or periods | ||||||
26 | of voluntary pay reduction shall be the responsibility of the |
| |||||||
| |||||||
1 | employer, and shall be reported in a manner prescribed by the | ||||||
2 | System. | ||||||
3 | This subsection (g) does not apply to (1) Tier 2 hybrid | ||||||
4 | plan members and (2) Tier 2 defined benefit members who first | ||||||
5 | participate under this Article on or after the implementation | ||||||
6 | date of the Optional Hybrid Plan. | ||||||
7 | (g-1) For academic years beginning on or after July 1, 2018 | ||||||
8 | and for earnings paid to a participant under a contract or | ||||||
9 | collective bargaining agreement entered into, amended, or | ||||||
10 | renewed on or after June 4, 2018 ( the effective date of Public | ||||||
11 | Act 100-587) this amendatory Act of the 100th General Assembly , | ||||||
12 | if the amount of a participant's earnings for any academic year | ||||||
13 | used to determine the final rate of earnings, determined on a | ||||||
14 | full-time equivalent basis, exceeds the amount of his or her | ||||||
15 | earnings with the same employer for the previous academic year, | ||||||
16 | determined on a full-time equivalent basis, by more than 3%, | ||||||
17 | then the participant's employer shall pay to the System, in | ||||||
18 | addition to all other payments required under this Section and | ||||||
19 | in accordance with guidelines established by the System, the | ||||||
20 | present value of the increase in benefits resulting from the | ||||||
21 | portion of the increase in earnings that is in excess of 3%. | ||||||
22 | This present value shall be computed by the System on the basis | ||||||
23 | of the actuarial assumptions and tables used in the most recent | ||||||
24 | actuarial valuation of the System that is available at the time | ||||||
25 | of the computation. The System may require the employer to | ||||||
26 | provide any pertinent information or documentation. |
| |||||||
| |||||||
1 | Whenever it determines that a payment is or may be required | ||||||
2 | under this subsection (g-1), the System shall calculate the | ||||||
3 | amount of the payment and bill the employer for that amount. | ||||||
4 | The bill shall specify the calculations used to determine the | ||||||
5 | amount due. If the employer disputes the amount of the bill, it | ||||||
6 | may, within 30 days after receipt of the bill, apply to the | ||||||
7 | System in writing for a recalculation. The application must | ||||||
8 | specify in detail the grounds of the dispute and, if the | ||||||
9 | employer asserts that subsection (g) or (h-1) of this Section | ||||||
10 | applies, must include an affidavit setting forth and attesting | ||||||
11 | to all facts within the employer's knowledge that are pertinent | ||||||
12 | to the applicability of subsection (g) or (h-1) . Upon receiving | ||||||
13 | a timely application for recalculation, the System shall review | ||||||
14 | the application and, if appropriate, recalculate the amount | ||||||
15 | due. | ||||||
16 | The employer contributions required under this subsection | ||||||
17 | (g-1) may be paid in the form of a lump sum within 90 days after | ||||||
18 | receipt of the bill. If the employer contributions are not paid | ||||||
19 | within 90 days after receipt of the bill, then interest shall | ||||||
20 | be charged at a rate equal to the System's annual actuarially | ||||||
21 | assumed rate of return on investment compounded annually from | ||||||
22 | the 91st day after receipt of the bill. Payments must be | ||||||
23 | concluded within 3 years after the employer's receipt of the | ||||||
24 | bill. | ||||||
25 | This subsection (g-1) does not apply to (1) Tier 2 hybrid | ||||||
26 | plan members and (2) Tier 2 defined benefit members who first |
| |||||||
| |||||||
1 | participate under this Article on or after the implementation | ||||||
2 | date of the Optional Hybrid Plan. | ||||||
3 | (h) This subsection (h) applies only to payments made or | ||||||
4 | salary increases given on or after June 1, 2005 but before July | ||||||
5 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
6 | require the System to refund any payments received before July | ||||||
7 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (g), the System shall exclude earnings increases paid to | ||||||
10 | participants under contracts or collective bargaining | ||||||
11 | agreements entered into, amended, or renewed before June 1, | ||||||
12 | 2005.
| ||||||
13 | When assessing payment for any amount due under subsection | ||||||
14 | (g), the System shall exclude earnings increases paid to a | ||||||
15 | participant at a time when the participant is 10 or more years | ||||||
16 | from retirement eligibility under Section 15-135.
| ||||||
17 | When assessing payment for any amount due under subsection | ||||||
18 | (g), the System shall exclude earnings increases resulting from | ||||||
19 | overload work, including a contract for summer teaching, or | ||||||
20 | overtime when the employer has certified to the System, and the | ||||||
21 | System has approved the certification, that: (i) in the case of | ||||||
22 | overloads (A) the overload work is for the sole purpose of | ||||||
23 | academic instruction in excess of the standard number of | ||||||
24 | instruction hours for a full-time employee occurring during the | ||||||
25 | academic year that the overload is paid and (B) the earnings | ||||||
26 | increases are equal to or less than the rate of pay for |
| |||||||
| |||||||
1 | academic instruction computed using the participant's current | ||||||
2 | salary rate and work schedule; and (ii) in the case of | ||||||
3 | overtime, the overtime was necessary for the educational | ||||||
4 | mission. | ||||||
5 | When assessing payment for any amount due under subsection | ||||||
6 | (g), the System shall exclude any earnings increase resulting | ||||||
7 | from (i) a promotion for which the employee moves from one | ||||||
8 | classification to a higher classification under the State | ||||||
9 | Universities Civil Service System, (ii) a promotion in academic | ||||||
10 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
11 | promotion that the Illinois Community College Board has | ||||||
12 | recommended in accordance with subsection (k) of this Section. | ||||||
13 | These earnings increases shall be excluded only if the | ||||||
14 | promotion is to a position that has existed and been filled by | ||||||
15 | a member for no less than one complete academic year and the | ||||||
16 | earnings increase as a result of the promotion is an increase | ||||||
17 | that results in an amount no greater than the average salary | ||||||
18 | paid for other similar positions. | ||||||
19 | (h-1) This subsection (h-1) applies only to payments made | ||||||
20 | or salary increases given in academic years beginning on or | ||||||
21 | after July 1, 2018. The changes made by this amendatory Act of | ||||||
22 | the 101st General Assembly shall not require the System to | ||||||
23 | refund any payments received before the effective date of this | ||||||
24 | amendatory Act of the 101st General Assembly. | ||||||
25 | When assessing payment for any amount due under subsection | ||||||
26 | (g-1), the System shall exclude earnings increases paid to a |
| |||||||
| |||||||
1 | participant at a time when the participant is 10 or more years | ||||||
2 | from retirement eligibility under Section 15-135. | ||||||
3 | When assessing payment for any amount due under subsection | ||||||
4 | (g-1), the System shall exclude earnings increases resulting | ||||||
5 | from overload work, including a contract for summer teaching, | ||||||
6 | or overtime when the employer has certified to the System, and | ||||||
7 | the System has approved the certification, that: (i) in the | ||||||
8 | case of overloads (A) the overload work is for the sole purpose | ||||||
9 | of academic instruction in excess of the standard number of | ||||||
10 | instruction hours for a full-time employee occurring during the | ||||||
11 | academic year that the overload is paid and (B) the earnings | ||||||
12 | increases are equal to or less than the rate of pay for | ||||||
13 | academic instruction computed using the participant's current | ||||||
14 | salary rate and work schedule; and (ii) in the case of | ||||||
15 | overtime, the overtime was necessary for the educational | ||||||
16 | mission. | ||||||
17 | When assessing payment for any amount due under subsection | ||||||
18 | (g-1), the System shall exclude any earnings increase resulting | ||||||
19 | from (i) a promotion for which the employee moves from one | ||||||
20 | classification to a higher classification under the State | ||||||
21 | Universities Civil Service System, (ii) a promotion in academic | ||||||
22 | rank for a tenured or tenure-track faculty position, or (iii) a | ||||||
23 | promotion that the Illinois Community College Board has | ||||||
24 | recommended in accordance with subsection (k) of this Section. | ||||||
25 | These earnings increases shall be excluded only if the | ||||||
26 | promotion is to a position that has existed and been filled by |
| |||||||
| |||||||
1 | a member for no less than one complete academic year and the | ||||||
2 | earnings increase as a result of the promotion is an increase | ||||||
3 | that results in an amount no greater than the average salary | ||||||
4 | paid for other similar positions. | ||||||
5 | (i) When assessing payment for any amount due under | ||||||
6 | subsection (g), the System shall exclude any salary increase | ||||||
7 | described in subsection (h) of this Section given on or after | ||||||
8 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
9 | collective bargaining agreement entered into, amended, or | ||||||
10 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
11 | Notwithstanding any other provision of this Section, any | ||||||
12 | payments made or salary increases given after June 30, 2014 | ||||||
13 | shall be used in assessing payment for any amount due under | ||||||
14 | subsection (g) of this Section.
| ||||||
15 | (j) The System shall prepare a report and file copies of | ||||||
16 | the report with the Governor and the General Assembly by | ||||||
17 | January 1, 2007 that contains all of the following information: | ||||||
18 | (1) The number of recalculations required by the | ||||||
19 | changes made to this Section by Public Act 94-1057 for each | ||||||
20 | employer. | ||||||
21 | (2) The dollar amount by which each employer's | ||||||
22 | contribution to the System was changed due to | ||||||
23 | recalculations required by Public Act 94-1057. | ||||||
24 | (3) The total amount the System received from each | ||||||
25 | employer as a result of the changes made to this Section by | ||||||
26 | Public Act 94-4. |
| |||||||
| |||||||
1 | (4) The increase in the required State contribution | ||||||
2 | resulting from the changes made to this Section by Public | ||||||
3 | Act 94-1057. | ||||||
4 | (j-5) For State fiscal years beginning on or after July 1, | ||||||
5 | 2017, if the amount of a participant's earnings for any State | ||||||
6 | fiscal year exceeds the amount of the salary set by law for the | ||||||
7 | Governor that is in effect on July 1 of that fiscal year, the | ||||||
8 | participant's employer shall pay to the System, in addition to | ||||||
9 | all other payments required under this Section and in | ||||||
10 | accordance with guidelines established by the System, an amount | ||||||
11 | determined by the System to be equal to the employer normal | ||||||
12 | cost, as established by the System and expressed as a total | ||||||
13 | percentage of payroll, multiplied by the amount of earnings in | ||||||
14 | excess of the amount of the salary set by law for the Governor. | ||||||
15 | This amount shall be computed by the System on the basis of the | ||||||
16 | actuarial assumptions and tables used in the most recent | ||||||
17 | actuarial valuation of the System that is available at the time | ||||||
18 | of the computation. The System may require the employer to | ||||||
19 | provide any pertinent information or documentation. | ||||||
20 | Whenever it determines that a payment is or may be required | ||||||
21 | under this subsection, the System shall calculate the amount of | ||||||
22 | the payment and bill the employer for that amount. The bill | ||||||
23 | shall specify the calculation used to determine the amount due. | ||||||
24 | If the employer disputes the amount of the bill, it may, within | ||||||
25 | 30 days after receipt of the bill, apply to the System in | ||||||
26 | writing for a recalculation. The application must specify in |
| |||||||
| |||||||
1 | detail the grounds of the dispute. Upon receiving a timely | ||||||
2 | application for recalculation, the System shall review the | ||||||
3 | application and, if appropriate, recalculate the amount due. | ||||||
4 | The employer contributions required under this subsection | ||||||
5 | may be paid in the form of a lump sum within 90 days after | ||||||
6 | issuance of the bill. If the employer contributions are not | ||||||
7 | paid within 90 days after issuance of the bill, then interest | ||||||
8 | will be charged at a rate equal to the System's annual | ||||||
9 | actuarially assumed rate of return on investment compounded | ||||||
10 | annually from the 91st day after issuance of the bill. All | ||||||
11 | payments must be received within 3 years after issuance of the | ||||||
12 | bill. If the employer fails to make complete payment, including | ||||||
13 | applicable interest, within 3 years, then the System may, after | ||||||
14 | giving notice to the employer, certify the delinquent amount to | ||||||
15 | the State Comptroller, and the Comptroller shall thereupon | ||||||
16 | deduct the certified delinquent amount from State funds payable | ||||||
17 | to the employer and pay them instead to the System. | ||||||
18 | This subsection (j-5) does not apply to a participant's | ||||||
19 | earnings to the extent an employer pays the employer normal | ||||||
20 | cost of such earnings. | ||||||
21 | The changes made to this subsection (j-5) by Public Act | ||||||
22 | 100-624 this amendatory Act of the 100th General Assembly are | ||||||
23 | intended to apply retroactively to July 6, 2017 (the effective | ||||||
24 | date of Public Act 100-23). | ||||||
25 | (k) The Illinois Community College Board shall adopt rules | ||||||
26 | for recommending lists of promotional positions submitted to |
| |||||||
| |||||||
1 | the Board by community colleges and for reviewing the | ||||||
2 | promotional lists on an annual basis. When recommending | ||||||
3 | promotional lists, the Board shall consider the similarity of | ||||||
4 | the positions submitted to those positions recognized for State | ||||||
5 | universities by the State Universities Civil Service System. | ||||||
6 | The Illinois Community College Board shall file a copy of its | ||||||
7 | findings with the System. The System shall consider the | ||||||
8 | findings of the Illinois Community College Board when making | ||||||
9 | determinations under this Section. The System shall not exclude | ||||||
10 | any earnings increases resulting from a promotion when the | ||||||
11 | promotion was not submitted by a community college. Nothing in | ||||||
12 | this subsection (k) shall require any community college to | ||||||
13 | submit any information to the Community College Board.
| ||||||
14 | (l) For purposes of determining the required State | ||||||
15 | contribution to the System, the value of the System's assets | ||||||
16 | shall be equal to the actuarial value of the System's assets, | ||||||
17 | which shall be calculated as follows: | ||||||
18 | As of June 30, 2008, the actuarial value of the System's | ||||||
19 | assets shall be equal to the market value of the assets as of | ||||||
20 | that date. In determining the actuarial value of the System's | ||||||
21 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
22 | gains or losses from investment return incurred in a fiscal | ||||||
23 | year shall be recognized in equal annual amounts over the | ||||||
24 | 5-year period following that fiscal year. | ||||||
25 | (m) For purposes of determining the required State | ||||||
26 | contribution to the system for a particular year, the actuarial |
| |||||||
| |||||||
1 | value of assets shall be assumed to earn a rate of return equal | ||||||
2 | to the system's actuarially assumed rate of return. | ||||||
3 | (Source: P.A. 99-897, eff. 1-1-17; 100-23, eff. 7-6-17; | ||||||
4 | 100-587, eff. 6-4-18; 100-624, eff. 7-20-18; revised 7-30-18.)
| ||||||
5 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
6 | Sec. 16-158. Contributions by State and other employing | ||||||
7 | units.
| ||||||
8 | (a) The State shall make contributions to the System by | ||||||
9 | means of
appropriations from the Common School Fund and other | ||||||
10 | State funds of amounts
which, together with other employer | ||||||
11 | contributions, employee contributions,
investment income, and | ||||||
12 | other income, will be sufficient to meet the cost of
| ||||||
13 | maintaining and administering the System on a 90% funded basis | ||||||
14 | in accordance
with actuarial recommendations.
| ||||||
15 | The Board shall determine the amount of State contributions | ||||||
16 | required for
each fiscal year on the basis of the actuarial | ||||||
17 | tables and other assumptions
adopted by the Board and the | ||||||
18 | recommendations of the actuary, using the formula
in subsection | ||||||
19 | (b-3).
| ||||||
20 | (a-1) Annually, on or before November 15 until November 15, | ||||||
21 | 2011, the Board shall certify to the
Governor the amount of the | ||||||
22 | required State contribution for the coming fiscal
year. The | ||||||
23 | certification under this subsection (a-1) shall include a copy | ||||||
24 | of the actuarial recommendations
upon which it is based and | ||||||
25 | shall specifically identify the System's projected State |
| |||||||
| |||||||
1 | normal cost for that fiscal year.
| ||||||
2 | On or before May 1, 2004, the Board shall recalculate and | ||||||
3 | recertify to
the Governor the amount of the required State | ||||||
4 | contribution to the System for
State fiscal year 2005, taking | ||||||
5 | into account the amounts appropriated to and
received by the | ||||||
6 | System under subsection (d) of Section 7.2 of the General
| ||||||
7 | Obligation Bond Act.
| ||||||
8 | On or before July 1, 2005, the Board shall recalculate and | ||||||
9 | recertify
to the Governor the amount of the required State
| ||||||
10 | contribution to the System for State fiscal year 2006, taking | ||||||
11 | into account the changes in required State contributions made | ||||||
12 | by Public Act 94-4.
| ||||||
13 | On or before April 1, 2011, the Board shall recalculate and | ||||||
14 | recertify to the Governor the amount of the required State | ||||||
15 | contribution to the System for State fiscal year 2011, applying | ||||||
16 | the changes made by Public Act 96-889 to the System's assets | ||||||
17 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
18 | was approved on that date. | ||||||
19 | (a-5) On or before November 1 of each year, beginning | ||||||
20 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
21 | the Governor, and the General Assembly a proposed certification | ||||||
22 | of the amount of the required State contribution to the System | ||||||
23 | for the next fiscal year, along with all of the actuarial | ||||||
24 | assumptions, calculations, and data upon which that proposed | ||||||
25 | certification is based. On or before January 1 of each year, | ||||||
26 | beginning January 1, 2013, the State Actuary shall issue a |
| |||||||
| |||||||
1 | preliminary report concerning the proposed certification and | ||||||
2 | identifying, if necessary, recommended changes in actuarial | ||||||
3 | assumptions that the Board must consider before finalizing its | ||||||
4 | certification of the required State contributions. On or before | ||||||
5 | January 15, 2013 and each January 15 thereafter, the Board | ||||||
6 | shall certify to the Governor and the General Assembly the | ||||||
7 | amount of the required State contribution for the next fiscal | ||||||
8 | year. The Board's certification must note any deviations from | ||||||
9 | the State Actuary's recommended changes, the reason or reasons | ||||||
10 | for not following the State Actuary's recommended changes, and | ||||||
11 | the fiscal impact of not following the State Actuary's | ||||||
12 | recommended changes on the required State contribution. | ||||||
13 | (a-10) By November 1, 2017, the Board shall recalculate and | ||||||
14 | recertify to the State Actuary, the Governor, and the General | ||||||
15 | Assembly the amount of the State contribution to the System for | ||||||
16 | State fiscal year 2018, taking into account the changes in | ||||||
17 | required State contributions made by Public Act 100-23. The | ||||||
18 | State Actuary shall review the assumptions and valuations | ||||||
19 | underlying the Board's revised certification and issue a | ||||||
20 | preliminary report concerning the proposed recertification and | ||||||
21 | identifying, if necessary, recommended changes in actuarial | ||||||
22 | assumptions that the Board must consider before finalizing its | ||||||
23 | certification of the required State contributions. The Board's | ||||||
24 | final certification must note any deviations from the State | ||||||
25 | Actuary's recommended changes, the reason or reasons for not | ||||||
26 | following the State Actuary's recommended changes, and the |
| |||||||
| |||||||
1 | fiscal impact of not following the State Actuary's recommended | ||||||
2 | changes on the required State contribution. | ||||||
3 | (a-15) On or after June 15, 2019, but no later than June | ||||||
4 | 30, 2019, the Board shall recalculate and recertify to the | ||||||
5 | Governor and the General Assembly the amount of the State | ||||||
6 | contribution to the System for State fiscal year 2019, taking | ||||||
7 | into account the changes in required State contributions made | ||||||
8 | by Public Act 100-587 this amendatory Act of the 100th General | ||||||
9 | Assembly . The recalculation shall be made using assumptions | ||||||
10 | adopted by the Board for the original fiscal year 2019 | ||||||
11 | certification. The monthly voucher for the 12th month of fiscal | ||||||
12 | year 2019 shall be paid by the Comptroller after the | ||||||
13 | recertification required pursuant to this subsection is | ||||||
14 | submitted to the Governor, Comptroller, and General Assembly. | ||||||
15 | The recertification submitted to the General Assembly shall be | ||||||
16 | filed with the Clerk of the House of Representatives and the | ||||||
17 | Secretary of the Senate in electronic form only, in the manner | ||||||
18 | that the Clerk and the Secretary shall direct. | ||||||
19 | (b) Through State fiscal year 1995, the State contributions | ||||||
20 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
21 | the School Code.
| ||||||
22 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
23 | of each month,
or as soon thereafter as may be practicable, the | ||||||
24 | Board shall submit vouchers
for payment of State contributions | ||||||
25 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
26 | required annual State contribution certified under
subsection |
| |||||||
| |||||||
1 | (a-1).
From March 5, 2004 (the
effective date of Public Act | ||||||
2 | 93-665)
through June 30, 2004, the Board shall not submit | ||||||
3 | vouchers for the
remainder of fiscal year 2004 in excess of the | ||||||
4 | fiscal year 2004
certified contribution amount determined | ||||||
5 | under this Section
after taking into consideration the transfer | ||||||
6 | to the System
under subsection (a) of Section 6z-61 of the | ||||||
7 | State Finance Act.
These vouchers shall be paid by the State | ||||||
8 | Comptroller and
Treasurer by warrants drawn on the funds | ||||||
9 | appropriated to the System for that
fiscal year.
| ||||||
10 | If in any month the amount remaining unexpended from all | ||||||
11 | other appropriations
to the System for the applicable fiscal | ||||||
12 | year (including the appropriations to
the System under Section | ||||||
13 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
14 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
15 | amount
lawfully vouchered under this subsection, the | ||||||
16 | difference shall be paid from the
Common School Fund under the | ||||||
17 | continuing appropriation authority provided in
Section 1.1 of | ||||||
18 | the State Pension Funds Continuing Appropriation Act.
| ||||||
19 | (b-2) Allocations from the Common School Fund apportioned | ||||||
20 | to school
districts not coming under this System shall not be | ||||||
21 | diminished or affected by
the provisions of this Article.
| ||||||
22 | (b-3) For State fiscal years 2012 through 2045, the minimum | ||||||
23 | contribution
to the System to be made by the State for each | ||||||
24 | fiscal year shall be an amount
determined by the System to be | ||||||
25 | sufficient to bring the total assets of the
System up to 90% of | ||||||
26 | the total actuarial liabilities of the System by the end of
|
| |||||||
| |||||||
1 | State fiscal year 2045. In making these determinations, the | ||||||
2 | required State
contribution shall be calculated each year as a | ||||||
3 | level percentage of payroll
over the years remaining to and | ||||||
4 | including fiscal year 2045 and shall be
determined under the | ||||||
5 | projected unit credit actuarial cost method.
| ||||||
6 | For each of State fiscal years 2018, 2019, and 2020, the | ||||||
7 | State shall make an additional contribution to the System equal | ||||||
8 | to 2% of the total payroll of each employee who is deemed to | ||||||
9 | have elected the benefits under Section 1-161 or who has made | ||||||
10 | the election under subsection (c) of Section 1-161. | ||||||
11 | A change in an actuarial or investment assumption that | ||||||
12 | increases or
decreases the required State contribution and | ||||||
13 | first
applies in State fiscal year 2018 or thereafter shall be
| ||||||
14 | implemented in equal annual amounts over a 5-year period
| ||||||
15 | beginning in the State fiscal year in which the actuarial
| ||||||
16 | change first applies to the required State contribution. | ||||||
17 | A change in an actuarial or investment assumption that | ||||||
18 | increases or
decreases the required State contribution and | ||||||
19 | first
applied to the State contribution in fiscal year 2014, | ||||||
20 | 2015, 2016, or 2017 shall be
implemented: | ||||||
21 | (i) as already applied in State fiscal years before | ||||||
22 | 2018; and | ||||||
23 | (ii) in the portion of the 5-year period beginning in | ||||||
24 | the State fiscal year in which the actuarial
change first | ||||||
25 | applied that occurs in State fiscal year 2018 or | ||||||
26 | thereafter, by calculating the change in equal annual |
| |||||||
| |||||||
1 | amounts over that 5-year period and then implementing it at | ||||||
2 | the resulting annual rate in each of the remaining fiscal | ||||||
3 | years in that 5-year period. | ||||||
4 | For State fiscal years 1996 through 2005, the State | ||||||
5 | contribution to the
System, as a percentage of the applicable | ||||||
6 | employee payroll, shall be increased
in equal annual increments | ||||||
7 | so that by State fiscal year 2011, the State is
contributing at | ||||||
8 | the rate required under this Section; except that in the
| ||||||
9 | following specified State fiscal years, the State contribution | ||||||
10 | to the System
shall not be less than the following indicated | ||||||
11 | percentages of the applicable
employee payroll, even if the | ||||||
12 | indicated percentage will produce a State
contribution in | ||||||
13 | excess of the amount otherwise required under this subsection
| ||||||
14 | and subsection (a), and notwithstanding any contrary | ||||||
15 | certification made under
subsection (a-1) before May 27, 1998 | ||||||
16 | (the effective date of Public Act 90-582):
10.02% in FY 1999;
| ||||||
17 | 10.77% in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% | ||||||
18 | in FY 2003; and
13.56% in FY 2004.
| ||||||
19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State
contribution for State fiscal year 2006 is | ||||||
21 | $534,627,700.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State
contribution for State fiscal year 2007 is | ||||||
24 | $738,014,500.
| ||||||
25 | For each of State fiscal years 2008 through 2009, the State | ||||||
26 | contribution to
the System, as a percentage of the applicable |
| |||||||
| |||||||
1 | employee payroll, shall be
increased in equal annual increments | ||||||
2 | from the required State contribution for State fiscal year | ||||||
3 | 2007, so that by State fiscal year 2011, the
State is | ||||||
4 | contributing at the rate otherwise required under this Section.
| ||||||
5 | Notwithstanding any other provision of this Article, the | ||||||
6 | total required State contribution for State fiscal year 2010 is | ||||||
7 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
8 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
9 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
10 | expenses determined by the System's share of total bond | ||||||
11 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
12 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
13 | due to the issuance of discounted bonds, if applicable. | ||||||
14 | Notwithstanding any other provision of this Article, the
| ||||||
15 | total required State contribution for State fiscal year 2011 is
| ||||||
16 | the amount recertified by the System on or before April 1, 2011 | ||||||
17 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
18 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
19 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
20 | pro rata share of bond sale
expenses determined by the System's | ||||||
21 | share of total bond
proceeds, (ii) any amounts received from | ||||||
22 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
23 | reduction in bond proceeds
due to the issuance of discounted | ||||||
24 | bonds, if applicable. This amount shall include, in addition to | ||||||
25 | the amount certified by the System, an amount necessary to meet | ||||||
26 | employer contributions required by the State as an employer |
| |||||||
| |||||||
1 | under paragraph (e) of this Section, which may also be used by | ||||||
2 | the System for contributions required by paragraph (a) of | ||||||
3 | Section 16-127. | ||||||
4 | Beginning in State fiscal year 2046, the minimum State | ||||||
5 | contribution for
each fiscal year shall be the amount needed to | ||||||
6 | maintain the total assets of
the System at 90% of the total | ||||||
7 | actuarial liabilities of the System.
| ||||||
8 | Amounts received by the System pursuant to Section 25 of | ||||||
9 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
10 | Finance Act in any fiscal year do not reduce and do not | ||||||
11 | constitute payment of any portion of the minimum State | ||||||
12 | contribution required under this Article in that fiscal year. | ||||||
13 | Such amounts shall not reduce, and shall not be included in the | ||||||
14 | calculation of, the required State contributions under this | ||||||
15 | Article in any future year until the System has reached a | ||||||
16 | funding ratio of at least 90%. A reference in this Article to | ||||||
17 | the "required State contribution" or any substantially similar | ||||||
18 | term does not include or apply to any amounts payable to the | ||||||
19 | System under Section 25 of the Budget Stabilization Act. | ||||||
20 | Notwithstanding any other provision of this Section, the | ||||||
21 | required State
contribution for State fiscal year 2005 and for | ||||||
22 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
23 | under this Section and
certified under subsection (a-1), shall | ||||||
24 | not exceed an amount equal to (i) the
amount of the required | ||||||
25 | State contribution that would have been calculated under
this | ||||||
26 | Section for that fiscal year if the System had not received any |
| |||||||
| |||||||
1 | payments
under subsection (d) of Section 7.2 of the General | ||||||
2 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
3 | total debt service payments for that fiscal
year on the bonds | ||||||
4 | issued in fiscal year 2003 for the purposes of that Section | ||||||
5 | 7.2, as determined
and certified by the Comptroller, that is | ||||||
6 | the same as the System's portion of
the total moneys | ||||||
7 | distributed under subsection (d) of Section 7.2 of the General
| ||||||
8 | Obligation Bond Act. In determining this maximum for State | ||||||
9 | fiscal years 2008 through 2010, however, the amount referred to | ||||||
10 | in item (i) shall be increased, as a percentage of the | ||||||
11 | applicable employee payroll, in equal increments calculated | ||||||
12 | from the sum of the required State contribution for State | ||||||
13 | fiscal year 2007 plus the applicable portion of the State's | ||||||
14 | total debt service payments for fiscal year 2007 on the bonds | ||||||
15 | issued in fiscal year 2003 for the purposes of Section 7.2 of | ||||||
16 | the General
Obligation Bond Act, so that, by State fiscal year | ||||||
17 | 2011, the
State is contributing at the rate otherwise required | ||||||
18 | under this Section.
| ||||||
19 | (b-4) Beginning in fiscal year 2018, each employer under | ||||||
20 | this Article shall pay to the System a required contribution | ||||||
21 | determined as a percentage of projected payroll and sufficient | ||||||
22 | to produce an annual amount equal to: | ||||||
23 | (i) for each of fiscal years 2018, 2019, and 2020, the | ||||||
24 | defined benefit normal cost of the defined benefit plan, | ||||||
25 | less the employee contribution, for each employee of that | ||||||
26 | employer who has elected or who is deemed to have elected |
| |||||||
| |||||||
1 | the benefits under Section 1-161 or who has made the | ||||||
2 | election under subsection (b) of Section 1-161; for fiscal | ||||||
3 | year 2021 and each fiscal year thereafter, the defined | ||||||
4 | benefit normal cost of the defined benefit plan, less the | ||||||
5 | employee contribution, plus 2%, for each employee of that | ||||||
6 | employer who has elected or who is deemed to have elected | ||||||
7 | the benefits under Section 1-161 or who has made the | ||||||
8 | election under subsection (b) of Section 1-161; plus | ||||||
9 | (ii) the amount required for that fiscal year to | ||||||
10 | amortize any unfunded actuarial accrued liability | ||||||
11 | associated with the present value of liabilities | ||||||
12 | attributable to the employer's account under Section | ||||||
13 | 16-158.3, determined
as a level percentage of payroll over | ||||||
14 | a 30-year rolling amortization period. | ||||||
15 | In determining contributions required under item (i) of | ||||||
16 | this subsection, the System shall determine an aggregate rate | ||||||
17 | for all employers, expressed as a percentage of projected | ||||||
18 | payroll. | ||||||
19 | In determining the contributions required under item (ii) | ||||||
20 | of this subsection, the amount shall be computed by the System | ||||||
21 | on the basis of the actuarial assumptions and tables used in | ||||||
22 | the most recent actuarial valuation of the System that is | ||||||
23 | available at the time of the computation. | ||||||
24 | The contributions required under this subsection (b-4) | ||||||
25 | shall be paid by an employer concurrently with that employer's | ||||||
26 | payroll payment period. The State, as the actual employer of an |
| |||||||
| |||||||
1 | employee, shall make the required contributions under this | ||||||
2 | subsection. | ||||||
3 | (c) Payment of the required State contributions and of all | ||||||
4 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
5 | other benefits granted
under or assumed by this System, and all | ||||||
6 | expenses in connection with the
administration and operation | ||||||
7 | thereof, are obligations of the State.
| ||||||
8 | If members are paid from special trust or federal funds | ||||||
9 | which are
administered by the employing unit, whether school | ||||||
10 | district or other
unit, the employing unit shall pay to the | ||||||
11 | System from such
funds the full accruing retirement costs based | ||||||
12 | upon that
service, which, beginning July 1, 2017, shall be at a | ||||||
13 | rate, expressed as a percentage of salary, equal to the total | ||||||
14 | employer's normal cost, expressed as a percentage of payroll, | ||||||
15 | as determined by the System. Employer contributions, based on
| ||||||
16 | salary paid to members from federal funds, may be forwarded by | ||||||
17 | the distributing
agency of the State of Illinois to the System | ||||||
18 | prior to allocation, in an
amount determined in accordance with | ||||||
19 | guidelines established by such
agency and the System. Any | ||||||
20 | contribution for fiscal year 2015 collected as a result of the | ||||||
21 | change made by Public Act 98-674 shall be considered a State | ||||||
22 | contribution under subsection (b-3) of this Section.
| ||||||
23 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
24 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
25 | employer's normal cost
of benefits based upon the teacher's | ||||||
26 | service, in addition to
employee contributions, as determined |
| |||||||
| |||||||
1 | by the System. Such employer
contributions shall be forwarded | ||||||
2 | monthly in accordance with guidelines
established by the | ||||||
3 | System.
| ||||||
4 | However, with respect to benefits granted under Section | ||||||
5 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
6 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
7 | (rather than 20%) of the member's
highest annual salary rate | ||||||
8 | for each year of creditable service granted, and
the employer | ||||||
9 | shall also pay the required employee contribution on behalf of
| ||||||
10 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
11 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
12 | 16-106 who is serving in that capacity
while on leave of | ||||||
13 | absence from another employer under this Article shall not
be | ||||||
14 | considered an employee of the employer from which the teacher | ||||||
15 | is on leave.
| ||||||
16 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
17 | shall pay to the System an employer contribution computed as | ||||||
18 | follows:
| ||||||
19 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
20 | employer
contribution shall be equal to 0.3% of each | ||||||
21 | teacher's salary.
| ||||||
22 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
23 | contribution shall be equal to 0.58% of each teacher's | ||||||
24 | salary.
| ||||||
25 | The school district or other employing unit may pay these | ||||||
26 | employer
contributions out of any source of funding available |
| |||||||
| |||||||
1 | for that purpose and
shall forward the contributions to the | ||||||
2 | System on the schedule established
for the payment of member | ||||||
3 | contributions.
| ||||||
4 | These employer contributions are intended to offset a | ||||||
5 | portion of the cost
to the System of the increases in | ||||||
6 | retirement benefits resulting from Public Act 90-582.
| ||||||
7 | Each employer of teachers is entitled to a credit against | ||||||
8 | the contributions
required under this subsection (e) with | ||||||
9 | respect to salaries paid to teachers
for the period January 1, | ||||||
10 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
11 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
12 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
13 | paid to teachers for that
period.
| ||||||
14 | The additional 1% employee contribution required under | ||||||
15 | Section 16-152 by Public Act 90-582
is the responsibility of | ||||||
16 | the teacher and not the
teacher's employer, unless the employer | ||||||
17 | agrees, through collective bargaining
or otherwise, to make the | ||||||
18 | contribution on behalf of the teacher.
| ||||||
19 | If an employer is required by a contract in effect on May | ||||||
20 | 1, 1998 between the
employer and an employee organization to | ||||||
21 | pay, on behalf of all its full-time
employees
covered by this | ||||||
22 | Article, all mandatory employee contributions required under
| ||||||
23 | this Article, then the employer shall be excused from paying | ||||||
24 | the employer
contribution required under this subsection (e) | ||||||
25 | for the balance of the term
of that contract. The employer and | ||||||
26 | the employee organization shall jointly
certify to the System |
| |||||||
| |||||||
1 | the existence of the contractual requirement, in such
form as | ||||||
2 | the System may prescribe. This exclusion shall cease upon the
| ||||||
3 | termination, extension, or renewal of the contract at any time | ||||||
4 | after May 1,
1998.
| ||||||
5 | (f) For school years beginning on or after June 1, 2005 and | ||||||
6 | before July 1, 2018 and for salary paid to a teacher under a | ||||||
7 | contract or collective bargaining agreement entered into, | ||||||
8 | amended, or renewed before June 4, 2018 ( the effective date of | ||||||
9 | Public Act 100-587) this amendatory Act of the 100th General | ||||||
10 | Assembly , if the amount of a teacher's salary for any school | ||||||
11 | year used to determine final average salary exceeds the | ||||||
12 | member's annual full-time salary rate with the same employer | ||||||
13 | for the previous school year by more than 6%, the teacher's | ||||||
14 | employer shall pay to the System, in addition to all other | ||||||
15 | payments required under this Section and in accordance with | ||||||
16 | guidelines established by the System, the present value of the | ||||||
17 | increase in benefits resulting from the portion of the increase | ||||||
18 | in salary that is in excess of 6%. This present value shall be | ||||||
19 | computed by the System on the basis of the actuarial | ||||||
20 | assumptions and tables used in the most recent actuarial | ||||||
21 | valuation of the System that is available at the time of the | ||||||
22 | computation. If a teacher's salary for the 2005-2006 school | ||||||
23 | year is used to determine final average salary under this | ||||||
24 | subsection (f), then the changes made to this subsection (f) by | ||||||
25 | Public Act 94-1057 shall apply in calculating whether the | ||||||
26 | increase in his or her salary is in excess of 6%. For the |
| |||||||
| |||||||
1 | purposes of this Section, change in employment under Section | ||||||
2 | 10-21.12 of the School Code on or after June 1, 2005 shall | ||||||
3 | constitute a change in employer. The System may require the | ||||||
4 | employer to provide any pertinent information or | ||||||
5 | documentation.
The changes made to this subsection (f) by | ||||||
6 | Public Act 94-1111 apply without regard to whether the teacher | ||||||
7 | was in service on or after its effective date.
| ||||||
8 | Whenever it determines that a payment is or may be required | ||||||
9 | under this subsection, the System shall calculate the amount of | ||||||
10 | the payment and bill the employer for that amount. The bill | ||||||
11 | shall specify the calculations used to determine the amount | ||||||
12 | due. If the employer disputes the amount of the bill, it may, | ||||||
13 | within 30 days after receipt of the bill, apply to the System | ||||||
14 | in writing for a recalculation. The application must specify in | ||||||
15 | detail the grounds of the dispute and, if the employer asserts | ||||||
16 | that the calculation is subject to subsection (g) or (h) of | ||||||
17 | this Section or that subsection (f-1) of this Section applies, | ||||||
18 | must include an affidavit setting forth and attesting to all | ||||||
19 | facts within the employer's knowledge that are pertinent to the | ||||||
20 | applicability of that subsection. Upon receiving a timely | ||||||
21 | application for recalculation, the System shall review the | ||||||
22 | application and, if appropriate, recalculate the amount due.
| ||||||
23 | The employer contributions required under this subsection | ||||||
24 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
25 | receipt of the bill. If the employer contributions are not paid | ||||||
26 | within 90 days after receipt of the bill, then interest will be |
| |||||||
| |||||||
1 | charged at a rate equal to the System's annual actuarially | ||||||
2 | assumed rate of return on investment compounded annually from | ||||||
3 | the 91st day after receipt of the bill. Payments must be | ||||||
4 | concluded within 3 years after the employer's receipt of the | ||||||
5 | bill.
| ||||||
6 | (f-1) For school years beginning on or after July 1, 2018 | ||||||
7 | and for salary paid to a teacher under a contract or collective | ||||||
8 | bargaining agreement entered into, amended, or renewed on or | ||||||
9 | after June 4, 2018 ( the effective date of Public Act 100-587) | ||||||
10 | this amendatory Act of the 100th General Assembly , if the | ||||||
11 | amount of a teacher's salary for any school year used to | ||||||
12 | determine final average salary exceeds the member's annual | ||||||
13 | full-time salary rate with the same employer for the previous | ||||||
14 | school year by more than 3%, then the teacher's employer shall | ||||||
15 | pay to the System, in addition to all other payments required | ||||||
16 | under this Section and in accordance with guidelines | ||||||
17 | established by the System, the present value of the increase in | ||||||
18 | benefits resulting from the portion of the increase in salary | ||||||
19 | that is in excess of 3%. This present value shall be computed | ||||||
20 | by the System on the basis of the actuarial assumptions and | ||||||
21 | tables used in the most recent actuarial valuation of the | ||||||
22 | System that is available at the time of the computation. The | ||||||
23 | System may require the employer to provide any pertinent | ||||||
24 | information or documentation. | ||||||
25 | Whenever it determines that a payment is or may be required | ||||||
26 | under this subsection (f-1), the System shall calculate the |
| |||||||
| |||||||
1 | amount of the payment and bill the employer for that amount. | ||||||
2 | The bill shall specify the calculations used to determine the | ||||||
3 | amount due. If the employer disputes the amount of the bill, it | ||||||
4 | shall, within 30 days after receipt of the bill, apply to the | ||||||
5 | System in writing for a recalculation. The application must | ||||||
6 | specify in detail the grounds of the dispute and, if the | ||||||
7 | employer asserts that subsection (f) or (g-1) of this Section | ||||||
8 | applies, must include an affidavit setting forth and attesting | ||||||
9 | to all facts within the employer's knowledge that are pertinent | ||||||
10 | to the applicability of subsection (f) or (g-1) . Upon receiving | ||||||
11 | a timely application for recalculation, the System shall review | ||||||
12 | the application and, if appropriate, recalculate the amount | ||||||
13 | due. | ||||||
14 | The employer contributions required under this subsection | ||||||
15 | (f-1) may be paid in the form of a lump sum within 90 days after | ||||||
16 | receipt of the bill. If the employer contributions are not paid | ||||||
17 | within 90 days after receipt of the bill, then interest shall | ||||||
18 | be charged at a rate equal to the System's annual actuarially | ||||||
19 | assumed rate of return on investment compounded annually from | ||||||
20 | the 91st day after receipt of the bill. Payments must be | ||||||
21 | concluded within 3 years after the employer's receipt of the | ||||||
22 | bill. | ||||||
23 | (g) This subsection (g) applies only to payments made or | ||||||
24 | salary increases given on or after June 1, 2005 but before July | ||||||
25 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
26 | require the System to refund any payments received before
July |
| |||||||
| |||||||
1 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
2 | When assessing payment for any amount due under subsection | ||||||
3 | (f), the System shall exclude salary increases paid to teachers | ||||||
4 | under contracts or collective bargaining agreements entered | ||||||
5 | into, amended, or renewed before June 1, 2005.
| ||||||
6 | When assessing payment for any amount due under subsection | ||||||
7 | (f), the System shall exclude salary increases paid to a | ||||||
8 | teacher at a time when the teacher is 10 or more years from | ||||||
9 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
10 | When assessing payment for any amount due under subsection | ||||||
11 | (f), the System shall exclude salary increases resulting from | ||||||
12 | overload work, including summer school, when the school | ||||||
13 | district has certified to the System, and the System has | ||||||
14 | approved the certification, that (i) the overload work is for | ||||||
15 | the sole purpose of classroom instruction in excess of the | ||||||
16 | standard number of classes for a full-time teacher in a school | ||||||
17 | district during a school year and (ii) the salary increases are | ||||||
18 | equal to or less than the rate of pay for classroom instruction | ||||||
19 | computed on the teacher's current salary and work schedule.
| ||||||
20 | When assessing payment for any amount due under subsection | ||||||
21 | (f), the System shall exclude a salary increase resulting from | ||||||
22 | a promotion (i) for which the employee is required to hold a | ||||||
23 | certificate or supervisory endorsement issued by the State | ||||||
24 | Teacher Certification Board that is a different certification | ||||||
25 | or supervisory endorsement than is required for the teacher's | ||||||
26 | previous position and (ii) to a position that has existed and |
| |||||||
| |||||||
1 | been filled by a member for no less than one complete academic | ||||||
2 | year and the salary increase from the promotion is an increase | ||||||
3 | that results in an amount no greater than the lesser of the | ||||||
4 | average salary paid for other similar positions in the district | ||||||
5 | requiring the same certification or the amount stipulated in | ||||||
6 | the collective bargaining agreement for a similar position | ||||||
7 | requiring the same certification.
| ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (f), the System shall exclude any payment to the teacher from | ||||||
10 | the State of Illinois or the State Board of Education over | ||||||
11 | which the employer does not have discretion, notwithstanding | ||||||
12 | that the payment is included in the computation of final | ||||||
13 | average salary.
| ||||||
14 | (g-1) This subsection (g-1) applies only to payments made | ||||||
15 | or salary increases given in school years beginning on or after | ||||||
16 | July 1, 2018. The changes made by this amendatory Act of the | ||||||
17 | 101st General Assembly shall not require the System to refund | ||||||
18 | any payments received before the effective date of this | ||||||
19 | amendatory Act of the 101st General Assembly. | ||||||
20 | When assessing payment for any amount due under subsection | ||||||
21 | (f-1), the System shall exclude salary increases paid to a | ||||||
22 | teacher at a time when the teacher is 10 or more years from | ||||||
23 | retirement eligibility under Section 16-132 or 16-133.2. | ||||||
24 | When assessing payment for any amount due under subsection | ||||||
25 | (f-1), the System shall exclude salary increases resulting from | ||||||
26 | overload work, including summer school, when the school |
| |||||||
| |||||||
1 | district has certified to the System, and the System has | ||||||
2 | approved the certification, that (i) the overload work is for | ||||||
3 | the sole purpose of classroom instruction in excess of the | ||||||
4 | standard number of classes for a full-time teacher in a school | ||||||
5 | district during a school year and (ii) the salary increases are | ||||||
6 | equal to or less than the rate of pay for classroom instruction | ||||||
7 | computed on the teacher's current salary and work schedule. | ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (f-1), the System shall exclude a salary increase resulting | ||||||
10 | from a promotion (i) for which the employee is required to hold | ||||||
11 | a certificate or supervisory endorsement issued by the State | ||||||
12 | Teacher Certification Board that is a different certification | ||||||
13 | or supervisory endorsement than is required for the teacher's | ||||||
14 | previous position and (ii) to a position that has existed and | ||||||
15 | been filled by a member for no less than one complete academic | ||||||
16 | year and the salary increase from the promotion is an increase | ||||||
17 | that results in an amount no greater than the lesser of the | ||||||
18 | average salary paid for other similar positions in the district | ||||||
19 | requiring the same certification or the amount stipulated in | ||||||
20 | the collective bargaining agreement for a similar position | ||||||
21 | requiring the same certification. | ||||||
22 | When assessing payment for any amount due under subsection | ||||||
23 | (f-1), the System shall exclude any payment to the teacher from | ||||||
24 | the State of Illinois or the State Board of Education over | ||||||
25 | which the employer does not have discretion, notwithstanding | ||||||
26 | that the payment is included in the computation of final |
| |||||||
| |||||||
1 | average salary. | ||||||
2 | (h) When assessing payment for any amount due under | ||||||
3 | subsection (f), the System shall exclude any salary increase | ||||||
4 | described in subsection (g) of this Section given on or after | ||||||
5 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
6 | collective bargaining agreement entered into, amended, or | ||||||
7 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
8 | Notwithstanding any other provision of this Section, any | ||||||
9 | payments made or salary increases given after June 30, 2014 | ||||||
10 | shall be used in assessing payment for any amount due under | ||||||
11 | subsection (f) of this Section.
| ||||||
12 | (i) The System shall prepare a report and file copies of | ||||||
13 | the report with the Governor and the General Assembly by | ||||||
14 | January 1, 2007 that contains all of the following information: | ||||||
15 | (1) The number of recalculations required by the | ||||||
16 | changes made to this Section by Public Act 94-1057 for each | ||||||
17 | employer. | ||||||
18 | (2) The dollar amount by which each employer's | ||||||
19 | contribution to the System was changed due to | ||||||
20 | recalculations required by Public Act 94-1057. | ||||||
21 | (3) The total amount the System received from each | ||||||
22 | employer as a result of the changes made to this Section by | ||||||
23 | Public Act 94-4. | ||||||
24 | (4) The increase in the required State contribution | ||||||
25 | resulting from the changes made to this Section by Public | ||||||
26 | Act 94-1057.
|
| |||||||
| |||||||
1 | (i-5) For school years beginning on or after July 1, 2017, | ||||||
2 | if the amount of a participant's salary for any school year | ||||||
3 | exceeds the amount of the salary set for the Governor, the | ||||||
4 | participant's employer shall pay to the System, in addition to | ||||||
5 | all other payments required under this Section and in | ||||||
6 | accordance with guidelines established by the System, an amount | ||||||
7 | determined by the System to be equal to the employer normal | ||||||
8 | cost, as established by the System and expressed as a total | ||||||
9 | percentage of payroll, multiplied by the amount of salary in | ||||||
10 | excess of the amount of the salary set for the Governor. This | ||||||
11 | amount shall be computed by the System on the basis of the | ||||||
12 | actuarial assumptions and tables used in the most recent | ||||||
13 | actuarial valuation of the System that is available at the time | ||||||
14 | of the computation. The System may require the employer to | ||||||
15 | provide any pertinent information or documentation. | ||||||
16 | Whenever it determines that a payment is or may be required | ||||||
17 | under this subsection, the System shall calculate the amount of | ||||||
18 | the payment and bill the employer for that amount. The bill | ||||||
19 | shall specify the calculations used to determine the amount | ||||||
20 | due. If the employer disputes the amount of the bill, it may, | ||||||
21 | within 30 days after receipt of the bill, apply to the System | ||||||
22 | in writing for a recalculation. The application must specify in | ||||||
23 | detail the grounds of the dispute. Upon receiving a timely | ||||||
24 | application for recalculation, the System shall review the | ||||||
25 | application and, if appropriate, recalculate the amount due. | ||||||
26 | The employer contributions required under this subsection |
| |||||||
| |||||||
1 | may be paid in the form of a lump sum within 90 days after | ||||||
2 | receipt of the bill. If the employer contributions are not paid | ||||||
3 | within 90 days after receipt of the bill, then interest will be | ||||||
4 | charged at a rate equal to the System's annual actuarially | ||||||
5 | assumed rate of return on investment compounded annually from | ||||||
6 | the 91st day after receipt of the bill. Payments must be | ||||||
7 | concluded within 3 years after the employer's receipt of the | ||||||
8 | bill. | ||||||
9 | (j) For purposes of determining the required State | ||||||
10 | contribution to the System, the value of the System's assets | ||||||
11 | shall be equal to the actuarial value of the System's assets, | ||||||
12 | which shall be calculated as follows: | ||||||
13 | As of June 30, 2008, the actuarial value of the System's | ||||||
14 | assets shall be equal to the market value of the assets as of | ||||||
15 | that date. In determining the actuarial value of the System's | ||||||
16 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
17 | gains or losses from investment return incurred in a fiscal | ||||||
18 | year shall be recognized in equal annual amounts over the | ||||||
19 | 5-year period following that fiscal year. | ||||||
20 | (k) For purposes of determining the required State | ||||||
21 | contribution to the system for a particular year, the actuarial | ||||||
22 | value of assets shall be assumed to earn a rate of return equal | ||||||
23 | to the system's actuarially assumed rate of return. | ||||||
24 | (Source: P.A. 100-23, eff. 7-6-17; 100-340, eff. 8-25-17; | ||||||
25 | 100-587, eff. 6-4-18; 100-624, eff. 7-20-18; 100-863, eff. | ||||||
26 | 8-14-18; revised 10-4-18.)
|
| |||||||
| |||||||
1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
|