Bill Text: IL SB3111 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: Amends the Illinois Administrative Procedure Act. Makes a technical change in a Section concerning the short title.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3111 Detail]

Download: Illinois-2011-SB3111-Amended.html

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Sen. Dale A. Righter

Filed: 5/31/2012

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AMENDMENT TO SENATE BILL 3111
AMENDMENT NO. ______. Amend Senate Bill 3111 by replacing
everything after the enacting clause with the following:
"Section 1. The State Employees Group Insurance Act of 1971
is amended by adding Section 6.16 as follows:
(5 ILCS 375/6.16 new)
Sec. 6.16. Health benefit election for Tier I employees and
Tier I retirees.
(a) For purposes of this Section:
"Eligible Tier I employee" means an individual who makes or
is deemed to have made an election under paragraph (1) of
subsection (a) of Section 2-110.3 of the Illinois Pension Code.
"Eligible Tier I retiree" means an individual who makes or
is deemed to have made an election under paragraph (1) of
subsection (a-5) of Section 2-110.3 of the Illinois Pension
Code.

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"Program of health benefits" means (i) a health plan, as
defined in subsection (o) of Section 3 of this Act, that is
designed and contracted for by the Director under this Act or
any successor Act or (ii) if administration of that health plan
is transferred to a trust established by the State or an
independent Board in order to provide health benefits to a
class of a persons that includes eligible Tier I retirees, then
the plan of health benefits provided through that trust.
(b) As adequate and legal consideration for making the
election under paragraph (1) of subsection (a) or (a-5) of
Section 2-110.3 of the Illinois Pension Code, each eligible
Tier I employee and each eligible Tier I retiree shall receive
a vested and enforceable contractual right to participate in a
program of health benefits while he or she qualifies as an
annuitant or retired employee. That right also extends to such
a person's dependents and survivors if they are eligible under
the applicable program of health benefits.
(c) Notwithstanding subsection (b), eligible Tier I
employees and eligible Tier I retirees may be required to make
contributions toward the cost of coverage under a program of
health benefits.
(d) The vested and enforceable contractual right to a
program of health benefits is not offered as, and shall not be
considered, a pension benefit under Article XIII, Section 5 of
the Illinois Constitution, the Illinois Pension Code, or any
subsequent or successor enactment providing pension benefits.

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(e) Notwithstanding any other provision of this Act, a Tier
I employee or Tier I retiree who has made an election under
paragraph (2) of subsection (a) or (a-5) of Section 2-110.3 of
the Illinois Pension Code shall not be entitled to participate
in the program of health benefits as an annuitant or retired
employee.
Notwithstanding any other provision of this Act, a Tier I
employee who is not entitled to participate in the program of
health benefits as an annuitant or retired employee due to an
election under paragraph (2) of subsection (a) or (a-5) of
Section 2-110.3 of the Illinois Pension Code shall not be
required to make contributions toward the program of health
benefits while he or she is an employee.
Section 5. The Illinois Pension Code is amended by changing
Sections 2-108, 2-119.1, 2-124, and 2-134 and by adding
Sections 2-105.1, 2-105.2, 2-107.9, and 2-110.3 as follows:
(40 ILCS 5/2-105.1 new)
Sec. 2-105.1. Tier I employee. "Tier I employee": A
participant who first became a participant before January 1,
2011.
(40 ILCS 5/2-105.2 new)
Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a
former Tier I employee who is receiving a retirement annuity.

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(40 ILCS 5/2-107.9 new)
Sec. 2-107.9. Future increase in income. "Future increase
in income": Any increase in income in any form offered for
service as a member under this Article after June 30, 2013 that
would qualify as "salary", as defined under Section 2-108, but
for the fact that the increase in income was offered to the
member on the condition that it not qualify as salary and was
accepted by the member subject to that condition.
(40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
Sec. 2-108. Salary. "Salary": (1) For members of the
General Assembly, the total compensation paid to the member by
the State for one year of service, including the additional
amounts, if any, paid to the member as an officer pursuant to
Section 1 of "An Act in relation to the compensation and
emoluments of the members of the General Assembly", approved
December 6, 1907, as now or hereafter amended.
(2) For the State executive officers specified in Section
2-105, the total compensation paid to the member for one year
of service.
(3) For members of the System who are participants under
Section 2-117.1, or who are serving as Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate, the total compensation paid to the
member for one year of service, but not to exceed the salary of

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the highest salaried officer of the General Assembly.
However, in the event that federal law results in any
participant receiving imputed income based on the value of
group term life insurance provided by the State, such imputed
income shall not be included in salary for the purposes of this
Article.
Notwithstanding any other provision of this Section,
"salary" does not include any future increase in income that is
offered for service as a member under this Article pursuant to
the requirements of subsection (c) of Section 2-110.3 and
accepted by a Tier I employee, or a Tier I retiree returning to
active service, who has made an election under paragraph (2) of
subsection (a) or (a-5) of Section Section 2-110.3.
(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
(40 ILCS 5/2-110.3 new)
Sec. 2-110.3. Election by Tier I employees and Tier I
retirees.
(a) Each Tier I employee shall make an irrevocable election
either:
(1) to agree to the following:
(i) to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (a-1) of Section
2-119.1; and

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(ii) to have his or her eligibility for automatic
annual increases in retirement annuity postponed as
provided in subsection (a-2) of Section 2-119.1 and to
relinquish the additional increases provided in
subsection (b) of Section 2-119.1; or
(2) to not agree to items (i) and (ii) as set forth in
paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier I employee no earlier than January 1, 2013
and no later than May 31, 2013, except that:
(i) a person who becomes a Tier I employee under this
Article after January 1, 2013 must make the election under
this subsection (a) within 60 days after becoming a Tier I
employee;
(ii) a person who returns to active service as a Tier I
employee under this Article after January 1, 2013 and has
not yet made an election under this Section must make the
election under this subsection (a) within 60 days after
returning to active service as a Tier I employee; and
(iii) a person who made the election under subsection
(a-5) as a Tier I retiree remains bound by that election
and shall not make a later election under this subsection
(a).
If a Tier I employee fails for any reason to make a
required election under this subsection within the time
specified, then the employee shall be deemed to have made the

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election under paragraph (2) of this subsection.
(a-5) Each Tier I retiree shall make an irrevocable
election either:
(1) to agree to the following:
(i) to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (a-1) of Section
2-119.1; and
(ii) to have his or her eligibility for automatic
annual increases in retirement annuity postponed as
provided in subsection (a-2) of Section 2-119.1 and to
relinquish the additional increases provided in
subsection (b) of Section 2-119.1; or
(2) to not agree to items (i) and (ii) as set forth in
paragraph (1) of this subsection.
The election required under this subsection (a-5) shall be
made by each Tier I retiree no earlier than January 1, 2013 and
no later than May 31, 2013, except that:
(i) a person who becomes a Tier I retiree under this
Article on or after January 1, 2013 must make the election
under this subsection (a-5) within 60 days after becoming a
Tier I retiree; and
(ii) a person who made the election under subsection
(a) as a Tier I employee remains bound by that election and
shall not make a later election under this subsection

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(a-5).
If a Tier I retiree fails for any reason to make a required
election under this subsection within the time specified, then
the Tier I retiree shall be deemed to have made the election
under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) or (a-5) that are
made or deemed to be made before June 1, 2013 shall take effect
on July 1, 2013. Elections that are made or deemed to be made
on or after June 1, 2013 shall take effect on the first day of
the month following the month in which the election is made or
deemed to be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 97th General Assembly for making the
election under paragraph (1) of subsection (a) of this Section,
any future increases in income offered for service as a member
under this Article to a Tier I employee who has made the
election under paragraph (1) of subsection (a) of this Section
shall be offered expressly and irrevocably as constituting
salary under Section 2-108.
As adequate and legal consideration provided under this
amendatory Act of the 97th General Assembly for making the
election under paragraph (1) of subsection (a-5) of this
Section, any future increases in income offered for service as
a member under this Article to a Tier I retiree who returns to
active service after having made the election under paragraph
(1) of subsection (a-5) of this Section shall be offered

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expressly and irrevocably as constituting salary under Section
2-108.
(c) A Tier I employee who makes the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to items (i) and (ii) set forth in paragraph (1) of
subsection (a) of this Section. However, any future increases
in income offered for service as a member under this Article to
a Tier I employee who has made the election under paragraph (2)
of subsection (a) of this Section shall be offered expressly
and irrevocably as not constituting salary under Section 2-108,
and the member may not accept any future increase in income
that is offered in violation of this requirement.
A Tier I retiree who makes the election under paragraph (2)
of subsection (a-5) of this Section shall not be subject to
items (i) and (ii) set forth in paragraph (1) of subsection
(a-5) of this Section. However, any future increases in income
offered for service as a member under this Article to a Tier I
retiree who returns to active service and has made the election
under paragraph (2) of subsection (a-5) of this Section shall
be offered expressly and irrevocably as not constituting salary
under Section 2-108, and the member may not accept any future
increase in income that is offered in violation of this
requirement.
(d) The System shall make a good faith effort to contact
each Tier I employee and Tier I retiree subject to this
Section. The System shall mail information describing the

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required election to each Tier I employee and Tier I retiree by
United States Postal Service mail to his or her last known
address on file with the System. If the Tier I employee or Tier
I retiree is not responsive to other means of contact, it is
sufficient for the System to publish the details of any
required elections on its website or to publish those details
in a regularly published newsletter or other existing public
forum.
Tier I employees and Tier I retirees who are subject to
this Section shall be provided with an election packet
containing information regarding their options, as well as the
forms necessary to make the required election. Upon request,
the System shall offer Tier I employees and Tier I retirees an
opportunity to receive information from the System before
making the required election. The information may be provided
through video materials, group presentations, individual
consultation with a member or authorized representative of the
System in person or by telephone or other electronic means, or
any combination of those methods. The System shall not provide
advice or counseling with respect to which election a Tier I
employee or Tier I retiree should make or specific to the legal
or tax circumstances of or consequences to the Tier I employee
or Tier I retiree.
The System shall inform Tier I employees and Tier I
retirees in the election packet required under this subsection
that the Tier I employee or Tier I retiree may also wish to

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obtain information and counsel relating to the election
required under this Section from any other available source,
including but not limited to labor organizations and private
counsel.
The System shall coordinate with the Illinois Department of
Central Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 97th General Assembly to provide information
concerning the impact of the election under this Section.
In no event shall the System, its staff, or the Board be
held liable for any information given to a member, beneficiary,
or annuitant regarding the elections under this Section.
(e) Notwithstanding any other provision of law, any future
increases in income offered for service as a member must be
offered expressly and irrevocably as not constituting "salary"
under Section 2-108 to any Tier I employee, or Tier I retiree
returning to active service, who has made an election under
paragraph (2) or subsection (a) or (a-5) of Section 2-110.3. A
Tier I employee, or Tier I retiree returning to active service,
who has made an election under paragraph (2) or subsection (a)
or (a-5) of Section 2-110.3 shall not accept any future
increase in income that is offered for service as a member
under this Article in violation of the requirement set forth in
this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119

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of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the System to cease to be a qualified plan
under section 461 (a) of the Internal Revenue Code of 1986.
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) Except as provided in subsections (a-1) and (a-2), a A
participant who retires after June 30, 1967, and who has not
received an initial increase under this Section before the
effective date of this amendatory Act of 1991, shall, in
January or July next following the first anniversary of
retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 60, have the
amount of the originally granted retirement annuity increased
as follows: for each year through 1971, 1 1/2%; for each year
from 1972 through 1979, 2%; and for 1980 and each year
thereafter, 3%. Annuitants who have received an initial
increase under this subsection prior to the effective date of
this amendatory Act of 1991 shall continue to receive their
annual increases in the same month as the initial increase.
(a-1) Notwithstanding any other provision of this Article,
for a Tier I employee or Tier I retiree who made the election
under paragraph (1) of subsection (a) or (a-5) of Section
2-110.3, the amount of each automatic annual increase in
retirement annuity occurring on or after the effective date of

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that election shall be 3% or one-half of the annual unadjusted
percentage increase, if any, in the Consumer Price Index-U for
the 12 months ending with the preceding September, whichever is
less, of the originally granted retirement annuity. For the
purposes of this Section, "Consumer Price Index-U" means the
index published by the Bureau of Labor Statistics of the United
States Department of Labor that measures the average change in
prices of goods and services purchased by all urban consumers,
United States city average, all items, 1982-84 = 100.
(a-2) For a Tier I employee or Tier I retiree who made the
election under paragraph (1) of subsection (a) or (a-5) of
Section 2-110.3, the monthly retirement annuity shall first be
subject to annual increases on the January 1 occurring on or
next after the attainment of age 67 or the January 1 occurring
on or next after the fifth anniversary of the annuity start
date, whichever occurs earlier. If on the effective date of the
election under paragraph (1) of subsection (a-5) of Section
2-110.3 a Tier I retiree has already received an annual
increase under this Section but does not yet meet the new
eligibility requirements of this subsection, the annual
increases already received shall continue in force, but no
additional annual increase shall be granted until the Tier I
retiree meets the new eligibility requirements.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall

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begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary of
retirement. For any person who has service credit in the System
for the entire period from January 15, 1969 through December
31, 1992, regardless of the date of termination of service, the
reference to age 55 in clause (1) of this subsection (b) shall
be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after August 8, 2003 (the
effective date of Public Act 93-494) or (ii) has made the
election under paragraph (1) of subsection (a) or (a-5) of
Section 2-110.3; except that if on the effective date of the
election under paragraph (1) of subsection (a-5) of Section
2-110.3 a Tier I retiree has already received a retirement
annuity based on any annual increases under this subsection,
those annual increases under this subsection shall continue in
force this amendatory Act of the 93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month of

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each year thereafter, but in no event prior to age 67, have the
amount of the retirement annuity then being paid increased by
3% or the annual unadjusted percentage increase in the Consumer
Price Index for All Urban Consumers as determined by the Public
Pension Division of the Department of Insurance under
subsection (a) of Section 2-108.1, whichever is less.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the

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originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
Sec. 2-124. Contributions by State.
(a) Except as otherwise provided in this Section, the The
State shall make contributions to the System by appropriations
of amounts which, together with the contributions of
participants, interest earned on investments, and other income
will meet the cost of maintaining and administering the System
on a 90% funded basis in accordance with actuarial
recommendations.
(b) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and
the prescribed rate of interest, using the formula in
subsection (c).
(c) Except as otherwise provided in this Section, for For
State fiscal years 2012 through 2045, the minimum contribution
to the System to be made by the State for each fiscal year

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

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total required State contribution for State fiscal year 2010 is
$10,454,000 and shall be made from the proceeds of bonds sold
in fiscal year 2010 pursuant to Section 7.2 of the General
Obligation Bond Act, less (i) the pro rata share of bond sale
expenses determined by the System's share of total bond
proceeds, (ii) any amounts received from the General Revenue
Fund in fiscal year 2010, and (iii) any reduction in bond
proceeds due to the issuance of discounted bonds, if
applicable.
Notwithstanding any other provision of this Article, the
total required State contribution for State fiscal year 2011 is
the amount recertified by the System on or before April 1, 2011
pursuant to Section 2-134 and shall be made from the proceeds
of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
the General Obligation Bond Act, less (i) the pro rata share of
bond sale expenses determined by the System's share of total
bond proceeds, (ii) any amounts received from the General
Revenue Fund in fiscal year 2011, and (iii) any reduction in
bond proceeds due to the issuance of discounted bonds, if
applicable.
Except as otherwise provided in this Section, beginning
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed to
maintain the total assets of the System at 90% of the total
actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of

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the Budget Stabilization Act or Section 8.12 of the State
Finance Act in any fiscal year do not reduce and do not
constitute payment of any portion of the minimum State
contribution required under this Article in that fiscal year.
Such amounts shall not reduce, and shall not be included in the
calculation of, the required State contributions under this
Article in any future year until the System has reached a
funding ratio of at least 90%. A reference in this Article to
the "required State contribution" or any substantially similar
term does not include or apply to any amounts payable to the
System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the
required State contribution for State fiscal year 2005 and for
fiscal year 2008 and each fiscal year thereafter, as calculated
under this Section and certified under Section 2-134, shall not
exceed an amount equal to (i) the amount of the required State
contribution that would have been calculated under this Section
for that fiscal year if the System had not received any
payments under subsection (d) of Section 7.2 of the General
Obligation Bond Act, minus (ii) the portion of the State's
total debt service payments for that fiscal year on the bonds
issued in fiscal year 2003 for the purposes of that Section
7.2, as determined and certified by the Comptroller, that is
the same as the System's portion of the total moneys
distributed under subsection (d) of Section 7.2 of the General
Obligation Bond Act. In determining this maximum for State

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fiscal years 2008 through 2010, however, the amount referred to
in item (i) shall be increased, as a percentage of the
applicable employee payroll, in equal increments calculated
from the sum of the required State contribution for State
fiscal year 2007 plus the applicable portion of the State's
total debt service payments for fiscal year 2007 on the bonds
issued in fiscal year 2003 for the purposes of Section 7.2 of
the General Obligation Bond Act, so that, by State fiscal year
2011, the State is contributing at the rate otherwise required
under this Section.
(c-1) If at least 50% of Tier I employees making an
election under Section 2-110.3 before June 1, 2013 choose the
option under paragraph (1) of subsection (a) of that Section,
then:
(1) In lieu of the State contributions required under
subsection (c), for State fiscal years 2014 through 2043
the minimum contribution to the System to be made by the
State for each fiscal year shall be an amount determined by
the System to be equal to the sum of (1) the State's
portion of the projected normal cost for that fiscal year,
plus (2) an amount sufficient to bring the total assets of
the System up to 100% of the total actuarial liabilities of
the System by the end of State fiscal year 2043. In making
these determinations, the required State contribution
shall be calculated each year as a level percentage of
payroll over the years remaining to and including fiscal

09700SB3111sam001 - 21 - LRB097 16633 JDS 70518 a
year 2043 and shall be determined under the projected unit
credit actuarial cost method.
(2) Beginning in State fiscal year 2044, the minimum
State contribution for each fiscal year shall be the amount
needed to maintain the total assets of the System at 100%
of the total actuarial liabilities of the System.
(c-2) If less than 50% of Tier I employees making an
election under Section 2-110.3 before June 1, 2013 choose the
option under paragraph (1) of subsection (a) of that Section,
then:
(1) Instead of the annual required contribution
otherwise specified in subsection (c-1) of this Section,
the annual required contribution to the System to be made
by the State shall be determined under subsection (c) of
this Section.
(2) As soon as possible after June 1, 2013, the Board
shall recertify the annual required contribution by the
State for State fiscal year 2014.
(d) For purposes of determining the required State
contribution to the System, the value of the System's assets
shall be equal to the actuarial value of the System's assets,
which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's
assets shall be equal to the market value of the assets as of
that date. In determining the actuarial value of the System's
assets for fiscal years after June 30, 2008, any actuarial

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gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(e) For purposes of determining the required State
contribution to the system for a particular year, the actuarial
value of assets shall be assumed to earn a rate of return equal
to the system's actuarially assumed rate of return.
(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09;
96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff.
3-18-11; revised 4-6-11.)
(40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134)
Sec. 2-134. To certify required State contributions and
submit vouchers.
(a) The Board shall certify to the Governor on or before
December 15 of each year until December 15, 2011 the amount of
the required State contribution to the System for the next
fiscal year and shall specifically identify the System's
projected State normal cost for that fiscal year. The
certification shall include a copy of the actuarial
recommendations upon which it is based and shall specifically
identify the System's projected State normal cost for that
fiscal year.
On or before November 1 of each year, beginning November 1,
2012, the Board shall submit to the State Actuary, the
Governor, and the General Assembly a proposed certification of

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the amount of the required State contribution to the System for
the next fiscal year, along with all of the actuarial
assumptions, calculations, and data upon which that proposed
certification is based. On or before January 1 of each year
beginning January 1, 2013, the State Actuary shall issue a
preliminary report concerning the proposed certification and
identifying, if necessary, recommended changes in actuarial
assumptions that the Board must consider before finalizing its
certification of the required State contributions. On or before
January 15, 2013 and every January 15 thereafter, the Board
shall certify to the Governor and the General Assembly the
amount of the required State contribution for the next fiscal
year. The Board's certification must note any deviations from
the State Actuary's recommended changes, the reason or reasons
for not following the State Actuary's recommended changes, and
the fiscal impact of not following the State Actuary's
recommended changes on the required State contribution.
On or before May 1, 2004, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2005, taking
into account the amounts appropriated to and received by the
System under subsection (d) of Section 7.2 of the General
Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2006, taking

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into account the changes in required State contributions made
by this amendatory Act of the 94th General Assembly.
On or before April 1, 2011, the Board shall recalculate and
recertify to the Governor the amount of the required State
contribution to the System for State fiscal year 2011, applying
the changes made by Public Act 96-889 to the System's assets
and liabilities as of June 30, 2009 as though Public Act 96-889
was approved on that date.
(b) Beginning in State fiscal year 1996, on or as soon as
possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). From the effective date of this amendatory Act of the 93rd
General Assembly through June 30, 2004, the Board shall not
submit vouchers for the remainder of fiscal year 2004 in excess
of the fiscal year 2004 certified contribution amount
determined under this Section after taking into consideration
the transfer to the System under subsection (d) of Section
6z-61 of the State Finance Act. These vouchers shall be paid by
the State Comptroller and Treasurer by warrants drawn on the
funds appropriated to the System for that fiscal year. If in
any month the amount remaining unexpended from all other
appropriations to the System for the applicable fiscal year
(including the appropriations to the System under Section 8.12
of the State Finance Act and Section 1 of the State Pension

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Funds Continuing Appropriation Act) is less than the amount
lawfully vouchered under this Section, the difference shall be
paid from the General Revenue Fund under the continuing
appropriation authority provided in Section 1.1 of the State
Pension Funds Continuing Appropriation Act.
(c) The full amount of any annual appropriation for the
System for State fiscal year 1995 shall be transferred and made
available to the System at the beginning of that fiscal year at
the request of the Board. Any excess funds remaining at the end
of any fiscal year from appropriations shall be retained by the
System as a general reserve to meet the System's accrued
liabilities.
(Source: P.A. 95-331, eff. 8-21-07; 96-1497, eff. 1-14-11;
96-1511, eff. 1-27-11.)
Section 105. Inseverability. The provisions of Section
5 of this Act are mutually dependent and inseverable. If any of
those provisions is held invalid other than as applied to a
particular person or circumstance, then all of those provisions
are invalid.
Section 999. Effective date. This Act takes effect upon
becoming law.".