103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5851

Introduced , by Rep. Stephanie A. Kifowit

SYNOPSIS AS INTRODUCED:
30 ILCS 122/20
40 ILCS 5/2-124 from Ch. 108 1/2, par. 2-124
40 ILCS 5/14-131
40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
40 ILCS 5/18-131 from Ch. 108 1/2, par. 18-131
40 ILCS 5/1-103.3 rep.

Amends the Budget Stabilization Act. Provides a transfer of specified amounts from the General Revenue Fund to the Pension Stabilization Fund for fiscal years 2030 through 2040. Amends the Illinois Pension Code. With regard to each of the 5 State-funded retirement systems, provides that for State fiscal years 2026 through 2034, the minimum contribution to the System to be made by the State for each State fiscal year shall be an amount determined by the System to be 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 2048. Provides that the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2048 and shall be determined under the projected unit credit actuarial cost method. Provides that for State fiscal years 2035 through 2048, the minimum contribution to the System to be made by the State for each State fiscal year shall be the contribution amount for the upcoming State fiscal year estimated in the previous year's actuarial valuation plus an adjustment for differences between the unfunded liability reported in the current actuarial valuation and the unfunded liability reported in the previous year's actuarial valuation, such that the total assets of the System equal 100% of the total actuarial liabilities of the System 20 years after the State fiscal year during which the contribution is made. Sets forth a funding formula for State fiscal year 2049 and thereafter. Repeals a provision requiring the Commission on Government Forecasting and Accountability to consider and determine whether certain funding goals are appropriate. Makes conforming and other changes. Effective immediately.
LRB103 40703 RPS 73498 b

A BILL FOR

HB5851LRB103 40703 RPS 73498 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Budget Stabilization Act is amended by
5changing Section 20 as follows:
6 (30 ILCS 122/20)
7 (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9 Sec. 20. Pension Stabilization Fund.
10 (a) The Pension Stabilization Fund is hereby created as a
11special fund in the State treasury. Moneys in the fund shall be
12used for the sole purpose of making payments to the designated
13retirement systems as provided in Section 25.
14 (b) For each fiscal year when the General Assembly's
15appropriations and transfers or diversions as required by law
16from general funds do not exceed 99% of the estimated general
17funds revenues pursuant to subsection (a) of Section 10, the
18Comptroller shall transfer from the General Revenue Fund as
19provided by this Section a total amount equal to 0.5% of the
20estimated general funds revenues to the Pension Stabilization
21Fund.
22 (c) For each fiscal year when the General Assembly's
23appropriations and transfers or diversions as required by law

HB5851- 2 -LRB103 40703 RPS 73498 b
1from general funds do not exceed 98% of the estimated general
2funds revenues pursuant to subsection (b) of Section 10, the
3Comptroller shall transfer from the General Revenue Fund as
4provided by this Section a total amount equal to 1.0% of the
5estimated general funds revenues to the Pension Stabilization
6Fund.
7 (c-5) In addition to any other transfers that may be
8provided by law, the Comptroller shall transfer from the
9General Revenue Fund to the Pension Stabilization Fund the
10amount set forth as follows for each of the specified fiscal
11years:
12Fiscal Year Amount
132030 $175,000,000
142031 through 2033 $250,000,000
152034 through 2040 $750,000,000
16 (d) The Comptroller shall transfer 1/12 of the total
17amount to be transferred each fiscal year under this Section
18into the Pension Stabilization Fund on the first day of each
19month of that fiscal year or as soon thereafter as possible;
20except that the final transfer of the fiscal year shall be made
21as soon as practical after the August 31 following the end of
22the fiscal year.
23 Before the final transfer for a fiscal year is made, the
24Comptroller shall reconcile the estimated general funds
25revenues used in calculating the other transfers under this
26Section for that fiscal year with the actual general funds

HB5851- 3 -LRB103 40703 RPS 73498 b
1revenues for that fiscal year. The final transfer for the
2fiscal year shall be adjusted so that the total amount
3transferred under this Section for that fiscal year is equal
4to the percentage specified in subsection (b) or (c) of this
5Section, whichever is applicable, of the actual general funds
6revenues for that fiscal year. The actual general funds
7revenues for the fiscal year shall be calculated in a manner
8consistent with subsection (c) of Section 10 of this Act.
9(Source: P.A. 94-839, eff. 6-6-06.)
10 Section 10. The Illinois Pension Code is amended by
11changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as
12follows:
13 (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
14 Sec. 2-124. Contributions by State.
15 (a) The State shall make contributions to the System by
16appropriations of amounts which, together with the
17contributions of participants, interest earned on investments,
18and other income will meet the cost of maintaining and
19administering the System on a 100% 90% funded basis by the end
20of State fiscal year 2048 in accordance with actuarial
21recommendations.
22 (b) The Board shall determine the amount of State
23contributions required for each fiscal year on the basis of
24the actuarial tables and other assumptions adopted by the

HB5851- 4 -LRB103 40703 RPS 73498 b
1Board and the prescribed rate of interest, using the formula
2in subsection (c). In making its determination, the Board
3shall disregard any contributions scheduled to be received in
4a future State fiscal year under the Budget Stabilization Act.
5 (c) Beginning in State fiscal year 2049, the minimum
6contribution to the System to be made by the State for each
7State fiscal year shall be the contribution amount for the
8upcoming State fiscal year estimated in the previous year's
9actuarial valuation required by Section 2-134 plus the amounts
10required under subsection (c-5), such that the total assets of
11the System equal 100% of the total actuarial liabilities of
12the System 20 years after the State fiscal year during which
13the contribution is made. The required State contribution
14shall be determined under the entry age normal actuarial cost
15method.
16 For State fiscal years 2035 through 2048, the minimum
17contribution to the System to be made by the State for each
18State fiscal year shall be the contribution amount for the
19upcoming State fiscal year estimated in the previous year's
20actuarial valuation required by Section 2-134 plus the amounts
21required under subsection (c-5), such that the total assets of
22the System equal 100% of the total actuarial liabilities of
23the System 20 years after the State fiscal year during which
24the contribution is made. In making these determinations, the
25required State contribution shall be calculated each year as a
26level percentage of payroll over the years remaining to and

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1including fiscal year 2048 and shall be determined under the
2projected unit credit actuarial cost method.
3 For State fiscal years 2026 through 2034, the minimum
4contribution to the System to be made by the State for each
5State fiscal year shall be an amount determined by the System
6to be sufficient to bring the total assets of the System up to
7100% of the total actuarial liabilities of the System by the
8end of State fiscal year 2048. In making these determinations,
9the required State contribution shall be calculated each year
10as a level percentage of payroll over the years remaining to
11and including fiscal year 2048 and shall be determined under
12the projected unit credit actuarial cost method.
13 For State fiscal years 2012 through 2025 2045, the minimum
14contribution to the System to be made by the State for each
15fiscal year shall be an amount determined by the System to be
16sufficient to bring the total assets of the System up to 90% of
17the total actuarial liabilities of the System by the end of
18State fiscal year 2045. In making these determinations, the
19required State contribution shall be calculated each year as a
20level percentage of payroll over the years remaining to and
21including fiscal year 2045 and shall be determined under the
22projected unit credit actuarial cost method.
23 A change in an actuarial or investment assumption that
24increases or decreases the required State contribution and
25first applies in State fiscal year 2018 and before State
26fiscal year 2035 or thereafter shall be implemented in equal

HB5851- 6 -LRB103 40703 RPS 73498 b
1annual amounts over a 5-year period beginning in the State
2fiscal year in which the actuarial change first applies to the
3required State contribution.
4 A change in an actuarial or investment assumption that
5increases or decreases the required State contribution and
6first applied to the State contribution in fiscal year 2014,
72015, 2016, or 2017 shall be implemented:
8 (i) as already applied in State fiscal years before
9 2018; and
10 (ii) in the portion of the 5-year period beginning in
11 the State fiscal year in which the actuarial change first
12 applied that occurs in State fiscal year 2018 or
13 thereafter, by calculating the change in equal annual
14 amounts over that 5-year period and then implementing it
15 at the resulting annual rate in each of the remaining
16 fiscal years in that 5-year period.
17 For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual
20increments so that by State fiscal year 2011, the State is
21contributing at the rate required under this Section.
22 Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006
24is $4,157,000.
25 Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007

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1is $5,220,300.
2 For each of State fiscal years 2008 through 2009, the
3State contribution to the System, as a percentage of the
4applicable employee payroll, shall be increased in equal
5annual increments from the required State contribution for
6State fiscal year 2007, so that by State fiscal year 2011, the
7State is contributing at the rate otherwise required under
8this Section.
9 Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2010
11is $10,454,000 and shall be made from the proceeds of bonds
12sold in fiscal year 2010 pursuant to Section 7.2 of the General
13Obligation Bond Act, less (i) the pro rata share of bond sale
14expenses determined by the System's share of total bond
15proceeds, (ii) any amounts received from the General Revenue
16Fund in fiscal year 2010, and (iii) any reduction in bond
17proceeds due to the issuance of discounted bonds, if
18applicable.
19 Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2011
21is the amount recertified by the System on or before April 1,
222011 pursuant to Section 2-134 and shall be made from the
23proceeds of bonds sold in fiscal year 2011 pursuant to Section
247.2 of the General Obligation Bond Act, less (i) the pro rata
25share of bond sale expenses determined by the System's share
26of total bond proceeds, (ii) any amounts received from the

HB5851- 8 -LRB103 40703 RPS 73498 b
1General Revenue Fund in fiscal year 2011, and (iii) any
2reduction in bond proceeds due to the issuance of discounted
3bonds, if applicable.
4 Beginning in State fiscal year 2046, the minimum State
5contribution for each fiscal year shall be the amount needed
6to maintain the total assets of the System at 90% of the total
7actuarial liabilities of the System.
8 Amounts received by the System pursuant to Section 25 of
9the Budget Stabilization Act or Section 8.12 of the State
10Finance Act in any fiscal year do not reduce and do not
11constitute payment of any portion of the minimum State
12contribution required under this Article in that fiscal year.
13Such amounts shall not reduce, and shall not be included in the
14calculation of, the required State contributions under this
15Article in any future year until the System has reached a
16funding ratio of at least 90%. A reference in this Article to
17the "required State contribution" or any substantially similar
18term does not include or apply to any amounts payable to the
19System under Section 25 of the Budget Stabilization Act.
20 Notwithstanding any other provision of this Section, the
21required State contribution for State fiscal year 2005 and for
22fiscal year 2008 and each fiscal year thereafter, as
23calculated under this Section and certified under Section
242-134, shall not exceed an amount equal to (i) the amount of
25the required State contribution that would have been
26calculated under this Section for that fiscal year if the

HB5851- 9 -LRB103 40703 RPS 73498 b
1System had not received any payments under subsection (d) of
2Section 7.2 of the General Obligation Bond Act, minus (ii) the
3portion of the State's total debt service payments for that
4fiscal year on the bonds issued in fiscal year 2003 for the
5purposes of that Section 7.2, as determined and certified by
6the Comptroller, that is the same as the System's portion of
7the total moneys distributed under subsection (d) of Section
87.2 of the General Obligation Bond Act. In determining this
9maximum for State fiscal years 2008 through 2010, however, the
10amount referred to in item (i) shall be increased, as a
11percentage of the applicable employee payroll, in equal
12increments calculated from the sum of the required State
13contribution for State fiscal year 2007 plus the applicable
14portion of the State's total debt service payments for fiscal
15year 2007 on the bonds issued in fiscal year 2003 for the
16purposes of Section 7.2 of the General Obligation Bond Act, so
17that, by State fiscal year 2011, the State is contributing at
18the rate otherwise required under this Section.
19 (c-5) For State fiscal year 2035 and each State fiscal
20year thereafter, the contribution to the System to be made by
21the State shall include an adjustment for differences between
22the unfunded liability reported in the current actuarial
23valuation and the unfunded liability reported in the previous
24year's actuarial valuation required by Section 2-134. The
25adjustment shall be implemented in equal annual amounts over a
2620-year period beginning in the State fiscal year in which the

HB5851- 10 -LRB103 40703 RPS 73498 b
1current actuarial valuation is used to determine the required
2State contribution under subsection (c).
3 (d) For purposes of determining the required State
4contribution to the System, the value of the System's assets
5shall be equal to the actuarial value of the System's assets,
6which shall be calculated as follows:
7 As of June 30, 2008, the actuarial value of the System's
8assets shall be equal to the market value of the assets as of
9that date. In determining the actuarial value of the System's
10assets for fiscal years after June 30, 2008, any actuarial
11gains or losses from investment return incurred in a fiscal
12year shall be recognized in equal annual amounts over the
135-year period following that fiscal year.
14 This subsection is inoperative on and after July 1, 2034.
15 (e) For purposes of determining the required State
16contribution to the system for a particular year, the
17actuarial value of assets shall be assumed to earn a rate of
18return equal to the system's actuarially assumed rate of
19return.
20(Source: P.A. 100-23, eff. 7-6-17.)
21 (40 ILCS 5/14-131)
22 Sec. 14-131. Contributions by State.
23 (a) The State shall make contributions to the System by
24appropriations of amounts which, together with other employer
25contributions from trust, federal, and other funds, employee

HB5851- 11 -LRB103 40703 RPS 73498 b
1contributions, investment income, and other income, will be
2sufficient to meet the cost of maintaining and administering
3the System on a 100% 90% funded basis by the end of State
4fiscal year 2048 in accordance with actuarial recommendations.
5 For the purposes of this Section and Section 14-135.08,
6references to State contributions refer only to employer
7contributions and do not include employee contributions that
8are picked up or otherwise paid by the State or a department on
9behalf of the employee.
10 (b) The Board shall determine the total amount of State
11contributions required for each fiscal year on the basis of
12the actuarial tables and other assumptions adopted by the
13Board, using the formula in subsection (e). In making its
14determination, the Board shall disregard any contributions
15scheduled to be received in a future State fiscal year under
16the Budget Stabilization Act.
17 The Board shall also determine a State contribution rate
18for each fiscal year, expressed as a percentage of payroll,
19based on the total required State contribution for that fiscal
20year (less the amount received by the System from
21appropriations under Section 8.12 of the State Finance Act and
22Section 1 of the State Pension Funds Continuing Appropriation
23Act, if any, for the fiscal year ending on the June 30
24immediately preceding the applicable November 15 certification
25deadline), the estimated payroll (including all forms of
26compensation) for personal services rendered by eligible

HB5851- 12 -LRB103 40703 RPS 73498 b
1employees, and the recommendations of the actuary.
2 For the purposes of this Section and Section 14.1 of the
3State Finance Act, the term "eligible employees" includes
4employees who participate in the System, persons who may elect
5to participate in the System but have not so elected, persons
6who are serving a qualifying period that is required for
7participation, and annuitants employed by a department as
8described in subdivision (a)(1) or (a)(2) of Section 14-111.
9 (c) Contributions shall be made by the several departments
10for each pay period by warrants drawn by the State Comptroller
11against their respective funds or appropriations based upon
12vouchers stating the amount to be so contributed. These
13amounts shall be based on the full rate certified by the Board
14under Section 14-135.08 for that fiscal year. From March 5,
152004 (the effective date of Public Act 93-665) through the
16payment of the final payroll from fiscal year 2004
17appropriations, the several departments shall not make
18contributions for the remainder of fiscal year 2004 but shall
19instead make payments as required under subsection (a-1) of
20Section 14.1 of the State Finance Act. The several departments
21shall resume those contributions at the commencement of fiscal
22year 2005.
23 (c-1) Notwithstanding subsection (c) of this Section, for
24fiscal years 2010, 2012, and each fiscal year thereafter,
25contributions by the several departments are not required to
26be made for General Revenue Funds payrolls processed by the

HB5851- 13 -LRB103 40703 RPS 73498 b
1Comptroller. Payrolls paid by the several departments from all
2other State funds must continue to be processed pursuant to
3subsection (c) of this Section.
4 (c-2) For State fiscal years 2010, 2012, and each fiscal
5year thereafter, on or as soon as possible after the 15th day
6of each month, the Board shall submit vouchers for payment of
7State contributions to the System, in a total monthly amount
8of one-twelfth of the fiscal year General Revenue Fund
9contribution as certified by the System pursuant to Section
1014-135.08 of the Illinois Pension Code.
11 (d) If an employee is paid from trust funds or federal
12funds, the department or other employer shall pay employer
13contributions from those funds to the System at the certified
14rate, unless the terms of the trust or the federal-State
15agreement preclude the use of the funds for that purpose, in
16which case the required employer contributions shall be paid
17by the State.
18 (e) Beginning in State fiscal year 2049, the minimum
19contribution to the System to be made by the State for each
20State fiscal year shall be the contribution amount for the
21upcoming State fiscal year estimated in the previous year's
22actuarial valuation required by Section 14-135.08 plus the
23amounts required under subsection (e-5), such that the total
24assets of the System equal 100% of the total actuarial
25liabilities of the System 20 years after the State fiscal year
26during which the contribution is made. The required State

HB5851- 14 -LRB103 40703 RPS 73498 b
1contribution shall be determined under the entry age normal
2actuarial cost method.
3 For State fiscal years 2035 through 2048, the minimum
4contribution to the System to be made by the State for each
5State fiscal year shall be the contribution amount for the
6upcoming State fiscal year estimated in the previous year's
7actuarial valuation required by Section 14-135.08 plus the
8amounts required under subsection (e-5), such that the total
9assets of the System equal 100% of the total actuarial
10liabilities of the System 20 years after the State fiscal year
11during which the contribution is made. In making these
12determinations, the required State contribution shall be
13calculated each year as a level percentage of payroll over the
14years remaining to and including fiscal year 2048 and shall be
15determined under the projected unit credit actuarial cost
16method.
17 For State fiscal years 2026 through 2034, the minimum
18contribution to the System to be made by the State for each
19State fiscal year shall be an amount determined by the System
20to be sufficient to bring the total assets of the System up to
21100% of the total actuarial liabilities of the System by the
22end of State fiscal year 2048. In making these determinations,
23the required State contribution shall be calculated each year
24as a level percentage of payroll over the years remaining to
25and including fiscal year 2048 and shall be determined under
26the projected unit credit actuarial cost method.

HB5851- 15 -LRB103 40703 RPS 73498 b
1 For State fiscal years 2012 through 2025 2045, the minimum
2contribution to the System to be made by the State for each
3fiscal year shall be an amount determined by the System to be
4sufficient to bring the total assets of the System up to 90% of
5the total actuarial liabilities of the System by the end of
6State fiscal year 2045. In making these determinations, the
7required State contribution shall be calculated each year as a
8level percentage of payroll over the years remaining to and
9including fiscal year 2045 and shall be determined under the
10projected unit credit actuarial cost method.
11 A change in an actuarial or investment assumption that
12increases or decreases the required State contribution and
13first applies in State fiscal year 2018 and before State
14fiscal year 2035 or thereafter shall be implemented in equal
15annual amounts over a 5-year period beginning in the State
16fiscal year in which the actuarial change first applies to the
17required State contribution.
18 A change in an actuarial or investment assumption that
19increases or decreases the required State contribution and
20first applied to the State contribution in fiscal year 2014,
212015, 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

HB5851- 16 -LRB103 40703 RPS 73498 b
1 thereafter, by calculating the change in equal annual
2 amounts over that 5-year period and then implementing it
3 at the resulting annual rate in each of the remaining
4 fiscal years in that 5-year period.
5 For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual
8increments so that by State fiscal year 2011, the State is
9contributing at the rate required under this Section; except
10that (i) for State fiscal year 1998, for all purposes of this
11Code and any other law of this State, the certified percentage
12of the applicable employee payroll shall be 5.052% for
13employees earning eligible creditable service under Section
1414-110 and 6.500% for all other employees, notwithstanding any
15contrary certification made under Section 14-135.08 before
16July 7, 1997 (the effective date of Public Act 90-65), and (ii)
17in the following specified State fiscal years, the State
18contribution to the System shall not be less than the
19following indicated percentages of the applicable employee
20payroll, even if the indicated percentage will produce a State
21contribution in excess of the amount otherwise required under
22this subsection and subsection (a): 9.8% in FY 1999; 10.0% in
23FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003;
24and 10.8% in FY 2004.
25 Beginning in State fiscal year 2046, the minimum State
26contribution for each fiscal year shall be the amount needed

HB5851- 17 -LRB103 40703 RPS 73498 b
1to maintain the total assets of the System at 90% of the total
2actuarial liabilities of the System.
3 Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 90%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15 Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter, as
18calculated under this Section and certified under Section
1914-135.08, shall not exceed an amount equal to (i) the amount
20of the required State contribution that would have been
21calculated under this Section for that fiscal year if the
22System had not received any payments under subsection (d) of
23Section 7.2 of the General Obligation Bond Act, minus (ii) the
24portion of the State's total debt service payments for that
25fiscal year on the bonds issued in fiscal year 2003 for the
26purposes of that Section 7.2, as determined and certified by

HB5851- 18 -LRB103 40703 RPS 73498 b
1the Comptroller, that is the same as the System's portion of
2the total moneys distributed under subsection (d) of Section
37.2 of the General Obligation Bond Act.
4 (e-5) For State fiscal year 2035 and each State fiscal
5year thereafter, the contribution to the System to be made by
6the State shall include an adjustment for differences between
7the unfunded liability reported in the current actuarial
8valuation and the unfunded liability reported in the previous
9year's actuarial valuation required by Section 14-135.08. The
10adjustment shall be implemented in equal annual amounts over a
1120-year period beginning in the State fiscal year in which the
12current actuarial valuation is used to determine the required
13State contribution under subsection (e).
14 (f) (Blank).
15 (g) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19 As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26 This subsection is inoperative on and after July 1, 2034.

HB5851- 19 -LRB103 40703 RPS 73498 b
1 (h) For purposes of determining the required State
2contribution to the System for a particular year, the
3actuarial value of assets shall be assumed to earn a rate of
4return equal to the System's actuarially assumed rate of
5return.
6 (i) (Blank).
7 (j) (Blank).
8 (k) For fiscal year 2012 and each fiscal year thereafter,
9after the submission of all payments for eligible employees
10from personal services line items paid from the General
11Revenue Fund in the fiscal year have been made, the
12Comptroller shall provide to the System a certification of the
13sum of all expenditures in the fiscal year for personal
14services. Upon receipt of the certification, the System shall
15determine the amount due to the System based on the full rate
16certified by the Board under Section 14-135.08 for the fiscal
17year in order to meet the State's obligation under this
18Section. The System shall compare this amount due to the
19amount received by the System for the fiscal year. If the
20amount due is more than the amount received, the difference
21shall be termed the "Prior Fiscal Year Shortfall" for purposes
22of this Section, and the Prior Fiscal Year Shortfall shall be
23satisfied under Section 1.2 of the State Pension Funds
24Continuing Appropriation Act. If the amount due is less than
25the amount received, the difference shall be termed the "Prior
26Fiscal Year Overpayment" for purposes of this Section, and the

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1Prior Fiscal Year Overpayment shall be repaid by the System to
2the General Revenue Fund as soon as practicable after the
3certification.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
5101-10, eff. 6-5-19.)
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
9appropriations of amounts which, together with the other
10employer contributions from trust, federal, and other funds,
11employee contributions, income from investments, and other
12income of this System, will be sufficient to meet the cost of
13maintaining and administering the System on a 100% 90% funded
14basis by the end of State fiscal year 2048 in accordance with
15actuarial recommendations.
16 The Board shall determine the amount of State
17contributions required for each fiscal year on the basis of
18the actuarial tables and other assumptions adopted by the
19Board and the recommendations of the actuary, using the
20formula in subsection (a-1). In making its determination, the
21Board shall disregard any contributions scheduled to be
22received in a future State fiscal year under the Budget
23Stabilization Act.
24 (a-1) Beginning in State fiscal year 2049, the minimum
25contribution to the System to be made by the State for each

HB5851- 21 -LRB103 40703 RPS 73498 b
1State fiscal year shall be the contribution amount for the
2upcoming State fiscal year estimated in the previous year's
3actuarial valuation required by subsection (a-5) of Section
415-165 plus the amounts required under subsection (a-1.5),
5such that the total assets of the System equal 100% of the
6total actuarial liabilities of the System 20 years after the
7State fiscal year during which the contribution is made. The
8required State contribution shall be determined under the
9entry age normal actuarial cost method.
10 For State fiscal years 2035 through 2048, the minimum
11contribution to the System to be made by the State for each
12State fiscal year shall be the contribution amount for the
13upcoming State fiscal year estimated in the previous year's
14actuarial valuation required by subsection (a-5) of Section
1515-165 plus the amounts required under subsection (a-1.5),
16such that the total assets of the System equal 100% of the
17total actuarial liabilities of the System 20 years after the
18State fiscal year during which the contribution is made. In
19making these determinations, the required State contribution
20shall be calculated each year as a level percentage of payroll
21over the years remaining to and including fiscal year 2048 and
22shall be determined under the projected unit credit actuarial
23cost method.
24 For State fiscal years 2026 through 2034, the minimum
25contribution to the System to be made by the State for each
26State fiscal year shall be an amount determined by the System

HB5851- 22 -LRB103 40703 RPS 73498 b
1to be sufficient to bring the total assets of the System up to
2100% of the total actuarial liabilities of the System by the
3end of State fiscal year 2048. In making these determinations,
4the required State contribution shall be calculated each year
5as a level percentage of payroll over the years remaining to
6and including fiscal year 2048 and shall be determined under
7the projected unit credit actuarial cost method.
8 For State fiscal years 2012 through 2025 2045, the minimum
9contribution to the System to be made by the State for each
10fiscal year shall be an amount determined by the System to be
11sufficient to bring the total assets of the System up to 90% of
12the total actuarial liabilities of the System by the end of
13State fiscal year 2045. In making these determinations, the
14required State contribution shall be calculated each year as a
15level percentage of payroll over the years remaining to and
16including fiscal year 2045 and shall be determined under the
17projected unit credit actuarial cost method.
18 For each of State fiscal years 2018, 2019, and 2020, the
19State shall make an additional contribution to the System
20equal to 2% of the total payroll of each employee who is deemed
21to have elected the benefits under Section 1-161 or who has
22made the election under subsection (c) of Section 1-161.
23 A change in an actuarial or investment assumption that
24increases or decreases the required State contribution and
25first applies in State fiscal year 2018 and before State
26fiscal year 2035 or thereafter shall be implemented in equal

HB5851- 23 -LRB103 40703 RPS 73498 b
1annual amounts over a 5-year period beginning in the State
2fiscal year in which the actuarial change first applies to the
3required State contribution.
4 A change in an actuarial or investment assumption that
5increases or decreases the required State contribution and
6first applied to the State contribution in fiscal year 2014,
72015, 2016, or 2017 shall be implemented:
8 (i) as already applied in State fiscal years before
9 2018; and
10 (ii) in the portion of the 5-year period beginning in
11 the State fiscal year in which the actuarial change first
12 applied that occurs in State fiscal year 2018 or
13 thereafter, by calculating the change in equal annual
14 amounts over that 5-year period and then implementing it
15 at the resulting annual rate in each of the remaining
16 fiscal years in that 5-year period.
17 For State fiscal years 1996 through 2005, the State
18contribution to the System, as a percentage of the applicable
19employee payroll, shall be increased in equal annual
20increments so that by State fiscal year 2011, the State is
21contributing at the rate required under this Section.
22 Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2006
24is $166,641,900.
25 Notwithstanding any other provision of this Article, the
26total required State contribution for State fiscal year 2007

HB5851- 24 -LRB103 40703 RPS 73498 b
1is $252,064,100.
2 For each of State fiscal years 2008 through 2009, the
3State contribution to the System, as a percentage of the
4applicable employee payroll, shall be increased in equal
5annual increments from the required State contribution for
6State fiscal year 2007, so that by State fiscal year 2011, the
7State is contributing at the rate otherwise required under
8this Section.
9 Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2010
11is $702,514,000 and shall be made from the State Pensions Fund
12and proceeds of bonds sold in fiscal year 2010 pursuant to
13Section 7.2 of the General Obligation Bond Act, less (i) the
14pro rata share of bond sale expenses determined by the
15System's share of total bond proceeds, (ii) any amounts
16received from the General Revenue Fund in fiscal year 2010,
17(iii) any reduction in bond proceeds due to the issuance of
18discounted bonds, if applicable.
19 Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2011
21is the amount recertified by the System on or before April 1,
222011 pursuant to Section 15-165 and shall be made from the
23State Pensions Fund and proceeds of bonds sold in fiscal year
242011 pursuant to Section 7.2 of the General Obligation Bond
25Act, less (i) the pro rata share of bond sale expenses
26determined by the System's share of total bond proceeds, (ii)

HB5851- 25 -LRB103 40703 RPS 73498 b
1any amounts received from the General Revenue Fund in fiscal
2year 2011, and (iii) any reduction in bond proceeds due to the
3issuance of discounted bonds, if applicable.
4 Beginning in State fiscal year 2046, the minimum State
5contribution for each fiscal year shall be the amount needed
6to maintain the total assets of the System at 90% of the total
7actuarial liabilities of the System.
8 Amounts received by the System pursuant to Section 25 of
9the Budget Stabilization Act or Section 8.12 of the State
10Finance Act in any fiscal year do not reduce and do not
11constitute payment of any portion of the minimum State
12contribution required under this Article in that fiscal year.
13Such amounts shall not reduce, and shall not be included in the
14calculation of, the required State contributions under this
15Article in any future year until the System has reached a
16funding ratio of at least 90%. A reference in this Article to
17the "required State contribution" or any substantially similar
18term does not include or apply to any amounts payable to the
19System under Section 25 of the Budget Stabilization Act.
20 Notwithstanding any other provision of this Section, the
21required State contribution for State fiscal year 2005 and for
22fiscal year 2008 and each fiscal year thereafter, as
23calculated under this Section and certified under Section
2415-165, shall not exceed an amount equal to (i) the amount of
25the required State contribution that would have been
26calculated under this Section for that fiscal year if the

HB5851- 26 -LRB103 40703 RPS 73498 b
1System had not received any payments under subsection (d) of
2Section 7.2 of the General Obligation Bond Act, minus (ii) the
3portion of the State's total debt service payments for that
4fiscal year on the bonds issued in fiscal year 2003 for the
5purposes of that Section 7.2, as determined and certified by
6the Comptroller, that is the same as the System's portion of
7the total moneys distributed under subsection (d) of Section
87.2 of the General Obligation Bond Act. In determining this
9maximum for State fiscal years 2008 through 2010, however, the
10amount referred to in item (i) shall be increased, as a
11percentage of the applicable employee payroll, in equal
12increments calculated from the sum of the required State
13contribution for State fiscal year 2007 plus the applicable
14portion of the State's total debt service payments for fiscal
15year 2007 on the bonds issued in fiscal year 2003 for the
16purposes of Section 7.2 of the General Obligation Bond Act, so
17that, by State fiscal year 2011, the State is contributing at
18the rate otherwise required under this Section.
19 (a-1.5) For State fiscal year 2035 and each State fiscal
20year thereafter, the contribution to the System to be made by
21the State shall include an adjustment for differences between
22the unfunded liability reported in the current actuarial
23valuation and the unfunded liability reported in the previous
24year's actuarial valuation required by subsection (a-5) of
25Section 15-165. The adjustment shall be implemented in equal
26annual amounts over a 20-year period beginning in the State

HB5851- 27 -LRB103 40703 RPS 73498 b
1fiscal year in which the current actuarial valuation is used
2to determine the required State contribution under subsection
3(a-1).
4 (a-2) Beginning in fiscal year 2018, each employer under
5this Article shall pay to the System a required contribution
6determined as a percentage of projected payroll and sufficient
7to produce an annual amount equal to:
8 (i) for each of fiscal years 2018, 2019, and 2020, the
9 defined benefit normal cost of the defined benefit plan,
10 less the employee contribution, for each employee of that
11 employer who has elected or who is deemed to have elected
12 the benefits under Section 1-161 or who has made the
13 election under subsection (c) of Section 1-161; for fiscal
14 year 2021 and each fiscal year thereafter, the defined
15 benefit normal cost of the defined benefit plan, less the
16 employee contribution, plus 2%, for each employee of that
17 employer who has elected or who is deemed to have elected
18 the benefits under Section 1-161 or who has made the
19 election under subsection (c) of Section 1-161; plus
20 (ii) the amount required for that fiscal year to
21 amortize any unfunded actuarial accrued liability
22 associated with the present value of liabilities
23 attributable to the employer's account under Section
24 15-155.2, determined as a level percentage of payroll over
25 a 30-year rolling amortization period.
26 In determining contributions required under item (i) of

HB5851- 28 -LRB103 40703 RPS 73498 b
1this subsection, the System shall determine an aggregate rate
2for all employers, expressed as a percentage of projected
3payroll.
4 In determining the contributions required under item (ii)
5of this subsection, the amount shall be computed by the System
6on the basis of the actuarial assumptions and tables used in
7the most recent actuarial valuation of the System that is
8available at the time of the computation.
9 The contributions required under this subsection (a-2)
10shall be paid by an employer concurrently with that employer's
11payroll payment period. The State, as the actual employer of
12an employee, shall make the required contributions under this
13subsection.
14 As used in this subsection, "academic year" means the
1512-month period beginning September 1.
16 (b) If an employee is paid from trust or federal funds, the
17employer shall pay to the Board contributions from those funds
18which are sufficient to cover the accruing normal costs on
19behalf of the employee. However, universities having employees
20who are compensated out of local auxiliary funds, income
21funds, or service enterprise funds are not required to pay
22such contributions on behalf of those employees. The local
23auxiliary funds, income funds, and service enterprise funds of
24universities shall not be considered trust funds for the
25purpose of this Article, but funds of alumni associations,
26foundations, and athletic associations which are affiliated

HB5851- 29 -LRB103 40703 RPS 73498 b
1with the universities included as employers under this Article
2and other employers which do not receive State appropriations
3are considered to be trust funds for the purpose of this
4Article.
5 (b-1) The City of Urbana and the City of Champaign shall
6each make employer contributions to this System for their
7respective firefighter employees who participate in this
8System pursuant to subsection (h) of Section 15-107. The rate
9of contributions to be made by those municipalities shall be
10determined annually by the Board on the basis of the actuarial
11assumptions adopted by the Board and the recommendations of
12the actuary, and shall be expressed as a percentage of salary
13for each such employee. The Board shall certify the rate to the
14affected municipalities as soon as may be practical. The
15employer contributions required under this subsection shall be
16remitted by the municipality to the System at the same time and
17in the same manner as employee contributions.
18 (c) Through State fiscal year 1995: The total employer
19contribution shall be apportioned among the various funds of
20the State and other employers, whether trust, federal, or
21other funds, in accordance with actuarial procedures approved
22by the Board. State of Illinois contributions for employers
23receiving State appropriations for personal services shall be
24payable from appropriations made to the employers or to the
25System. The contributions for Class I community colleges
26covering earnings other than those paid from trust and federal

HB5851- 30 -LRB103 40703 RPS 73498 b
1funds, shall be payable solely from appropriations to the
2Illinois Community College Board or the System for employer
3contributions.
4 (d) Beginning in State fiscal year 1996, the required
5State contributions to the System shall be appropriated
6directly to the System and shall be payable through vouchers
7issued in accordance with subsection (c) of Section 15-165,
8except as provided in subsection (g).
9 (e) The State Comptroller shall draw warrants payable to
10the System upon proper certification by the System or by the
11employer in accordance with the appropriation laws and this
12Code.
13 (f) Normal costs under this Section means liability for
14pensions and other benefits which accrues to the System
15because of the credits earned for service rendered by the
16participants during the fiscal year and expenses of
17administering the System, but shall not include the principal
18of or any redemption premium or interest on any bonds issued by
19the Board or any expenses incurred or deposits required in
20connection therewith.
21 (g) If the amount of a participant's earnings for any
22academic year used to determine the final rate of earnings,
23determined on a full-time equivalent basis, exceeds the amount
24of his or her earnings with the same employer for the previous
25academic year, determined on a full-time equivalent basis, by
26more than 6%, the participant's employer shall pay to the

HB5851- 31 -LRB103 40703 RPS 73498 b
1System, in addition to all other payments required under this
2Section and in accordance with guidelines established by the
3System, the present value of the increase in benefits
4resulting from the portion of the increase in earnings that is
5in excess of 6%. This present value shall be computed by the
6System on the basis of the actuarial assumptions and tables
7used in the most recent actuarial valuation of the System that
8is available at the time of the computation. The System may
9require the employer to provide any pertinent information or
10documentation.
11 Whenever it determines that a payment is or may be
12required under this subsection (g), the System shall calculate
13the amount of the payment and bill the employer for that
14amount. The bill shall specify the calculations used to
15determine the amount due. If the employer disputes the amount
16of the bill, it may, within 30 days after receipt of the bill,
17apply to the System in writing for a recalculation. The
18application must specify in detail the grounds of the dispute
19and, if the employer asserts that the calculation is subject
20to subsection (h), (h-5), or (i) of this Section, must include
21an affidavit setting forth and attesting to all facts within
22the employer's knowledge that are pertinent to the
23applicability of that subsection. Upon receiving a timely
24application for recalculation, the System shall review the
25application and, if appropriate, recalculate the amount due.
26 The employer contributions required under this subsection

HB5851- 32 -LRB103 40703 RPS 73498 b
1(g) may be paid in the form of a lump sum within 90 days after
2receipt of the bill. If the employer contributions are not
3paid within 90 days after receipt of the bill, then interest
4will be charged at a rate equal to the System's annual
5actuarially assumed rate of return on investment compounded
6annually from the 91st day after receipt of the bill. Payments
7must be concluded within 3 years after the employer's receipt
8of the bill.
9 When assessing payment for any amount due under this
10subsection (g), the System shall include earnings, to the
11extent not established by a participant under Section
1215-113.11 or 15-113.12, that would have been paid to the
13participant had the participant not taken (i) periods of
14voluntary or involuntary furlough occurring on or after July
151, 2015 and on or before June 30, 2017 or (ii) periods of
16voluntary pay reduction in lieu of furlough occurring on or
17after July 1, 2015 and on or before June 30, 2017. Determining
18earnings that would have been paid to a participant had the
19participant not taken periods of voluntary or involuntary
20furlough or periods of voluntary pay reduction shall be the
21responsibility of the employer, and shall be reported in a
22manner prescribed by the System.
23 This subsection (g) does not apply to (1) Tier 2 hybrid
24plan members and (2) Tier 2 defined benefit members who first
25participate under this Article on or after the implementation
26date of the Optional Hybrid Plan.

HB5851- 33 -LRB103 40703 RPS 73498 b
1 (g-1) (Blank).
2 (h) This subsection (h) applies only to payments made or
3salary increases given on or after June 1, 2005 but before July
41, 2011. The changes made by Public Act 94-1057 shall not
5require the System to refund any payments received before July
631, 2006 (the effective date of Public Act 94-1057).
7 When assessing payment for any amount due under subsection
8(g), the System shall exclude earnings increases paid to
9participants under contracts or collective bargaining
10agreements entered into, amended, or renewed before June 1,
112005.
12 When assessing payment for any amount due under subsection
13(g), the System shall exclude earnings increases paid to a
14participant at a time when the participant is 10 or more years
15from retirement eligibility under Section 15-135.
16 When assessing payment for any amount due under subsection
17(g), the System shall exclude earnings increases resulting
18from overload work, including a contract for summer teaching,
19or overtime when the employer has certified to the System, and
20the System has approved the certification, that: (i) in the
21case of overloads (A) the overload work is for the sole purpose
22of academic instruction in excess of the standard number of
23instruction hours for a full-time employee occurring during
24the academic year that the overload is paid and (B) the
25earnings increases are equal to or less than the rate of pay
26for academic instruction computed using the participant's

HB5851- 34 -LRB103 40703 RPS 73498 b
1current salary rate and work schedule; and (ii) in the case of
2overtime, the overtime was necessary for the educational
3mission.
4 When assessing payment for any amount due under subsection
5(g), the System shall exclude any earnings increase resulting
6from (i) a promotion for which the employee moves from one
7classification to a higher classification under the State
8Universities Civil Service System, (ii) a promotion in
9academic rank for a tenured or tenure-track faculty position,
10or (iii) a promotion that the Illinois Community College Board
11has recommended in accordance with subsection (k) of this
12Section. These earnings increases shall be excluded only if
13the promotion is to a position that has existed and been filled
14by a member for no less than one complete academic year and the
15earnings increase as a result of the promotion is an increase
16that results in an amount no greater than the average salary
17paid for other similar positions.
18 (h-5) When assessing payment for any amount due under
19subsection (g), the System shall exclude any earnings increase
20paid in an academic year beginning on or after July 1, 2020
21resulting from overload work performed in an academic year
22subsequent to an academic year in which the employer was
23unable to offer or allow to be conducted overload work due to
24an emergency declaration limiting such activities.
25 (i) When assessing payment for any amount due under
26subsection (g), the System shall exclude any salary increase

HB5851- 35 -LRB103 40703 RPS 73498 b
1described in subsection (h) of this Section given on or after
2July 1, 2011 but before July 1, 2014 under a contract or
3collective bargaining agreement entered into, amended, or
4renewed on or after June 1, 2005 but before July 1, 2011.
5Except as provided in subsection (h-5), any payments made or
6salary increases given after June 30, 2014 shall be used in
7assessing payment for any amount due under subsection (g) of
8this Section.
9 (j) The System shall prepare a report and file copies of
10the report with the Governor and the General Assembly by
11January 1, 2007 that contains all of the following
12information:
13 (1) The number of recalculations required by the
14 changes made to this Section by Public Act 94-1057 for
15 each employer.
16 (2) The dollar amount by which each employer's
17 contribution to the System was changed due to
18 recalculations required by Public Act 94-1057.
19 (3) The total amount the System received from each
20 employer as a result of the changes made to this Section by
21 Public Act 94-4.
22 (4) The increase in the required State contribution
23 resulting from the changes made to this Section by Public
24 Act 94-1057.
25 (j-5) For State fiscal years beginning on or after July 1,
262017, if the amount of a participant's earnings for any State

HB5851- 36 -LRB103 40703 RPS 73498 b
1fiscal year exceeds the amount of the salary set by law for the
2Governor that is in effect on July 1 of that fiscal year, the
3participant's employer shall pay to the System, in addition to
4all other payments required under this Section and in
5accordance with guidelines established by the System, an
6amount determined by the System to be equal to the employer
7normal cost, as established by the System and expressed as a
8total percentage of payroll, multiplied by the amount of
9earnings in excess of the amount of the salary set by law for
10the Governor. This amount shall be computed by the System on
11the basis of the actuarial assumptions and tables used in the
12most recent actuarial valuation of the System that is
13available at the time of the computation. The System may
14require the employer to provide any pertinent information or
15documentation.
16 Whenever it determines that a payment is or may be
17required under this subsection, the System shall calculate the
18amount of the payment and bill the employer for that amount.
19The bill shall specify the calculation used to determine the
20amount due. If the employer disputes the amount of the bill, it
21may, within 30 days after receipt of the bill, apply to the
22System in writing for a recalculation. The application must
23specify in detail the grounds of the dispute. Upon receiving a
24timely application for recalculation, the System shall review
25the application and, if appropriate, recalculate the amount
26due.

HB5851- 37 -LRB103 40703 RPS 73498 b
1 The employer contributions required under this subsection
2may be paid in the form of a lump sum within 90 days after
3issuance of the bill. If the employer contributions are not
4paid within 90 days after issuance of the bill, then interest
5will be charged at a rate equal to the System's annual
6actuarially assumed rate of return on investment compounded
7annually from the 91st day after issuance of the bill. All
8payments must be received within 3 years after issuance of the
9bill. If the employer fails to make complete payment,
10including applicable interest, within 3 years, then the System
11may, after giving notice to the employer, certify the
12delinquent amount to the State Comptroller, and the
13Comptroller shall thereupon deduct the certified delinquent
14amount from State funds payable to the employer and pay them
15instead to the System.
16 This subsection (j-5) does not apply to a participant's
17earnings to the extent an employer pays the employer normal
18cost of such earnings.
19 The changes made to this subsection (j-5) by Public Act
20100-624 are intended to apply retroactively to July 6, 2017
21(the effective date of Public Act 100-23).
22 (k) The Illinois Community College Board shall adopt rules
23for recommending lists of promotional positions submitted to
24the Board by community colleges and for reviewing the
25promotional lists on an annual basis. When recommending
26promotional lists, the Board shall consider the similarity of

HB5851- 38 -LRB103 40703 RPS 73498 b
1the positions submitted to those positions recognized for
2State universities by the State Universities Civil Service
3System. The Illinois Community College Board shall file a copy
4of its findings with the System. The System shall consider the
5findings of the Illinois Community College Board when making
6determinations under this Section. The System shall not
7exclude any earnings increases resulting from a promotion when
8the promotion was not submitted by a community college.
9Nothing in this subsection (k) shall require any community
10college to submit any information to the Community College
11Board.
12 (l) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16 As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23 This subsection is inoperative on and after July 1, 2034.
24 (m) For purposes of determining the required State
25contribution to the system for a particular year, the
26actuarial value of assets shall be assumed to earn a rate of

HB5851- 39 -LRB103 40703 RPS 73498 b
1return equal to the system's actuarially assumed rate of
2return.
3(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
4102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
55-13-22.)
6 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
7 Sec. 16-158. Contributions by State and other employing
8units.
9 (a) The State shall make contributions to the System by
10means of appropriations from the Common School Fund and other
11State funds of amounts which, together with other employer
12contributions, employee contributions, investment income, and
13other income, will be sufficient to meet the cost of
14maintaining and administering the System on a 100% 90% funded
15basis by the end of State fiscal year 2048 in accordance with
16actuarial recommendations.
17 The Board shall determine the amount of State
18contributions required for each fiscal year on the basis of
19the actuarial tables and other assumptions adopted by the
20Board and the recommendations of the actuary, using the
21formula in subsection (b-3). In making its determination, the
22Board shall disregard any contributions scheduled to be
23received in a future State fiscal year under the Budget
24Stabilization Act.
25 (a-1) Annually, on or before November 15 until November

HB5851- 40 -LRB103 40703 RPS 73498 b
115, 2011, the Board shall certify to the Governor the amount of
2the required State contribution for the coming fiscal year.
3The certification under this subsection (a-1) shall include a
4copy of the actuarial recommendations upon which it is based
5and shall specifically identify the System's projected State
6normal cost for that fiscal year.
7 On or before May 1, 2004, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2005, taking
10into account the amounts appropriated to and received by the
11System under subsection (d) of Section 7.2 of the General
12Obligation Bond Act.
13 On or before July 1, 2005, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2006, taking
16into account the changes in required State contributions made
17by Public Act 94-4.
18 On or before April 1, 2011, the Board shall recalculate
19and recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2011,
21applying the changes made by Public Act 96-889 to the System's
22assets and liabilities as of June 30, 2009 as though Public Act
2396-889 was approved on that date.
24 (a-5) On or before November 1 of each year, beginning
25November 1, 2012, the Board shall submit to the State Actuary,
26the Governor, and the General Assembly a proposed

HB5851- 41 -LRB103 40703 RPS 73498 b
1certification of the amount of the required State contribution
2to the System for the next fiscal year, along with all of the
3actuarial assumptions, calculations, and data upon which that
4proposed certification is based. On or before January 1 of
5each year, beginning January 1, 2013, the State Actuary shall
6issue a preliminary report concerning the proposed
7certification and identifying, if necessary, recommended
8changes in actuarial assumptions that the Board must consider
9before finalizing its certification of the required State
10contributions. On or before January 15, 2013 and each January
1115 thereafter, the Board shall certify to the Governor and the
12General Assembly the amount of the required State contribution
13for the next fiscal year. The Board's certification must note
14any deviations from the State Actuary's recommended changes,
15the reason or reasons for not following the State Actuary's
16recommended changes, and the fiscal impact of not following
17the State Actuary's recommended changes on the required State
18contribution.
19 (a-10) By November 1, 2017, the Board shall recalculate
20and recertify to the State Actuary, the Governor, and the
21General Assembly the amount of the State contribution to the
22System for State fiscal year 2018, taking into account the
23changes in required State contributions made by Public Act
24100-23. The State Actuary shall review the assumptions and
25valuations underlying the Board's revised certification and
26issue a preliminary report concerning the proposed

HB5851- 42 -LRB103 40703 RPS 73498 b
1recertification and identifying, if necessary, recommended
2changes in actuarial assumptions that the Board must consider
3before finalizing its certification of the required State
4contributions. The Board's final certification must note any
5deviations from the State Actuary's recommended changes, the
6reason or reasons for not following the State Actuary's
7recommended changes, and the fiscal impact of not following
8the State Actuary's recommended changes on the required State
9contribution.
10 (a-15) On or after June 15, 2019, but no later than June
1130, 2019, the Board shall recalculate and recertify to the
12Governor and the General Assembly the amount of the State
13contribution to the System for State fiscal year 2019, taking
14into account the changes in required State contributions made
15by Public Act 100-587. The recalculation shall be made using
16assumptions adopted by the Board for the original fiscal year
172019 certification. The monthly voucher for the 12th month of
18fiscal year 2019 shall be paid by the Comptroller after the
19recertification required pursuant to this subsection is
20submitted to the Governor, Comptroller, and General Assembly.
21The recertification submitted to the General Assembly shall be
22filed with the Clerk of the House of Representatives and the
23Secretary of the Senate in electronic form only, in the manner
24that the Clerk and the Secretary shall direct.
25 (b) Through State fiscal year 1995, the State
26contributions shall be paid to the System in accordance with

HB5851- 43 -LRB103 40703 RPS 73498 b
1Section 18-7 of the School Code.
2 (b-1) Beginning in State fiscal year 1996, on the 15th day
3of each month, or as soon thereafter as may be practicable, the
4Board shall submit vouchers for payment of State contributions
5to the System, in a total monthly amount of one-twelfth of the
6required annual State contribution certified under subsection
7(a-1). From March 5, 2004 (the effective date of Public Act
893-665) through June 30, 2004, the Board shall not submit
9vouchers for the remainder of fiscal year 2004 in excess of the
10fiscal year 2004 certified contribution amount determined
11under this Section after taking into consideration the
12transfer to the System under subsection (a) of Section 6z-61
13of the State Finance Act. These vouchers shall be paid by the
14State Comptroller and Treasurer by warrants drawn on the funds
15appropriated to the System for that fiscal year.
16 If in any month the amount remaining unexpended from all
17other appropriations to the System for the applicable fiscal
18year (including the appropriations to the System under Section
198.12 of the State Finance Act and Section 1 of the State
20Pension Funds Continuing Appropriation Act) is less than the
21amount lawfully vouchered under this subsection, the
22difference shall be paid from the Common School Fund under the
23continuing appropriation authority provided in Section 1.1 of
24the State Pension Funds Continuing Appropriation Act.
25 (b-2) Allocations from the Common School Fund apportioned
26to school districts not coming under this System shall not be

HB5851- 44 -LRB103 40703 RPS 73498 b
1diminished or affected by the provisions of this Article.
2 (b-3) Beginning in State fiscal year 2049, the minimum
3contribution to the System to be made by the State for each
4State fiscal year shall be the contribution amount for the
5upcoming State fiscal year estimated in the previous year's
6actuarial valuation required by subsection (a-5) plus the
7amounts required under subsection (b-3.5), such that the total
8assets of the System equal 100% of the total actuarial
9liabilities of the System 20 years after the State fiscal year
10during which the contribution is made. The required State
11contribution shall be determined under the entry age normal
12actuarial cost method.
13 For State fiscal years 2035 through 2048, the minimum
14contribution to the System to be made by the State for each
15State fiscal year shall be the contribution amount for the
16upcoming State fiscal year estimated in the previous year's
17actuarial valuation required by subsection (a-5) plus the
18amounts required under subsection (b-3.5), such that the total
19assets of the System equal 100% of the total actuarial
20liabilities of the System 20 years after the State fiscal year
21during which the contribution is made. In making these
22determinations, the required State contribution shall be
23calculated each year as a level percentage of payroll over the
24years remaining to and including fiscal year 2048 and shall be
25determined under the projected unit credit actuarial cost
26method.

HB5851- 45 -LRB103 40703 RPS 73498 b
1 For State fiscal years 2026 through 2034, the minimum
2contribution to the System to be made by the State for each
3State fiscal year shall be an amount determined by the System
4to be sufficient to bring the total assets of the System up to
5100% of the total actuarial liabilities of the System by the
6end of State fiscal year 2048. In making these determinations,
7the required State contribution shall be calculated each year
8as a level percentage of payroll over the years remaining to
9and including fiscal year 2048 and shall be determined under
10the projected unit credit actuarial cost method.
11 For State fiscal years 2012 through 2025 2045, the minimum
12contribution to the System to be made by the State for each
13fiscal year shall be an amount determined by the System to be
14sufficient to bring the total assets of the System up to 90% of
15the total actuarial liabilities of the System by the end of
16State fiscal year 2045. In making these determinations, the
17required State contribution shall be calculated each year as a
18level percentage of payroll over the years remaining to and
19including fiscal year 2045 and shall be determined under the
20projected unit credit actuarial cost method.
21 For each of State fiscal years 2018, 2019, and 2020, the
22State shall make an additional contribution to the System
23equal to 2% of the total payroll of each employee who is deemed
24to have elected the benefits under Section 1-161 or who has
25made the election under subsection (c) of Section 1-161.
26 A change in an actuarial or investment assumption that

HB5851- 46 -LRB103 40703 RPS 73498 b
1increases or decreases the required State contribution and
2first applies in State fiscal year 2018 and before State
3fiscal year 2035 or thereafter shall be implemented in equal
4annual amounts over a 5-year period beginning in the State
5fiscal year in which the actuarial change first applies to the
6required State contribution.
7 A change in an actuarial or investment assumption that
8increases or decreases the required State contribution and
9first applied to the State contribution in fiscal year 2014,
102015, 2016, or 2017 shall be implemented:
11 (i) as already applied in State fiscal years before
12 2018; and
13 (ii) in the portion of the 5-year period beginning in
14 the State fiscal year in which the actuarial change first
15 applied that occurs in State fiscal year 2018 or
16 thereafter, by calculating the change in equal annual
17 amounts over that 5-year period and then implementing it
18 at the resulting annual rate in each of the remaining
19 fiscal years in that 5-year period.
20 For State fiscal years 1996 through 2005, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual
23increments so that by State fiscal year 2011, the State is
24contributing at the rate required under this Section; except
25that in the following specified State fiscal years, the State
26contribution to the System shall not be less than the

HB5851- 47 -LRB103 40703 RPS 73498 b
1following indicated percentages of the applicable employee
2payroll, even if the indicated percentage will produce a State
3contribution in excess of the amount otherwise required under
4this subsection and subsection (a), and notwithstanding any
5contrary certification made under subsection (a-1) before May
627, 1998 (the effective date of Public Act 90-582): 10.02% in
7FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
82002; 12.86% in FY 2003; and 13.56% in FY 2004.
9 Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2006
11is $534,627,700.
12 Notwithstanding any other provision of this Article, the
13total required State contribution for State fiscal year 2007
14is $738,014,500.
15 For each of State fiscal years 2008 through 2009, the
16State contribution to the System, as a percentage of the
17applicable employee payroll, shall be increased in equal
18annual increments from the required State contribution for
19State fiscal year 2007, so that by State fiscal year 2011, the
20State is contributing at the rate otherwise required under
21this Section.
22 Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2010
24is $2,089,268,000 and shall be made from the proceeds of bonds
25sold in fiscal year 2010 pursuant to Section 7.2 of the General
26Obligation Bond Act, less (i) the pro rata share of bond sale

HB5851- 48 -LRB103 40703 RPS 73498 b
1expenses determined by the System's share of total bond
2proceeds, (ii) any amounts received from the Common School
3Fund in fiscal year 2010, and (iii) any reduction in bond
4proceeds due to the issuance of discounted bonds, if
5applicable.
6 Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2011
8is the amount recertified by the System on or before April 1,
92011 pursuant to subsection (a-1) of this Section and shall be
10made from the proceeds of bonds sold in fiscal year 2011
11pursuant to Section 7.2 of the General Obligation Bond Act,
12less (i) the pro rata share of bond sale expenses determined by
13the System's share of total bond proceeds, (ii) any amounts
14received from the Common School Fund in fiscal year 2011, and
15(iii) any reduction in bond proceeds due to the issuance of
16discounted bonds, if applicable. This amount shall include, in
17addition to the amount certified by the System, an amount
18necessary to meet employer contributions required by the State
19as an employer under paragraph (e) of this Section, which may
20also be used by the System for contributions required by
21paragraph (a) of Section 16-127.
22 Beginning in State fiscal year 2046, the minimum State
23contribution for each fiscal year shall be the amount needed
24to maintain the total assets of the System at 90% of the total
25actuarial liabilities of the System.
26 Amounts received by the System pursuant to Section 25 of

HB5851- 49 -LRB103 40703 RPS 73498 b
1the Budget Stabilization Act or Section 8.12 of the State
2Finance Act in any fiscal year do not reduce and do not
3constitute payment of any portion of the minimum State
4contribution required under this Article in that fiscal year.
5Such amounts shall not reduce, and shall not be included in the
6calculation of, the required State contributions under this
7Article in any future year until the System has reached a
8funding ratio of at least 90%. A reference in this Article to
9the "required State contribution" or any substantially similar
10term does not include or apply to any amounts payable to the
11System under Section 25 of the Budget Stabilization Act.
12 Notwithstanding any other provision of this Section, the
13required State contribution for State fiscal year 2005 and for
14fiscal year 2008 and each fiscal year thereafter, as
15calculated under this Section and certified under subsection
16(a-1), shall not exceed an amount equal to (i) the amount of
17the required State contribution that would have been
18calculated under this Section for that fiscal year if the
19System had not received any payments under subsection (d) of
20Section 7.2 of the General Obligation Bond Act, minus (ii) the
21portion of the State's total debt service payments for that
22fiscal year on the bonds issued in fiscal year 2003 for the
23purposes of that Section 7.2, as determined and certified by
24the Comptroller, that is the same as the System's portion of
25the total moneys distributed under subsection (d) of Section
267.2 of the General Obligation Bond Act. In determining this

HB5851- 50 -LRB103 40703 RPS 73498 b
1maximum for State fiscal years 2008 through 2010, however, the
2amount referred to in item (i) shall be increased, as a
3percentage of the applicable employee payroll, in equal
4increments calculated from the sum of the required State
5contribution for State fiscal year 2007 plus the applicable
6portion of the State's total debt service payments for fiscal
7year 2007 on the bonds issued in fiscal year 2003 for the
8purposes of Section 7.2 of the General Obligation Bond Act, so
9that, by State fiscal year 2011, the State is contributing at
10the rate otherwise required under this Section.
11 (b-3.5) For State fiscal year 2035 and each State fiscal
12year thereafter, the contribution to the System to be made by
13the State shall include an adjustment for differences between
14the unfunded liability reported in the current actuarial
15valuation and the unfunded liability reported in the previous
16year's actuarial valuation required by subsection (a-5). The
17adjustment shall be implemented in equal annual amounts over a
1820-year period beginning in the State fiscal year in which the
19current actuarial valuation is used to determine the required
20State contribution under subsection (b-3).
21 (b-4) Beginning in fiscal year 2018, each employer under
22this Article shall pay to the System a required contribution
23determined as a percentage of projected payroll and sufficient
24to produce an annual amount equal to:
25 (i) for each of fiscal years 2018, 2019, and 2020, the
26 defined benefit normal cost of the defined benefit plan,

HB5851- 51 -LRB103 40703 RPS 73498 b
1 less the employee contribution, for each employee of that
2 employer who has elected or who is deemed to have elected
3 the benefits under Section 1-161 or who has made the
4 election under subsection (b) of Section 1-161; for fiscal
5 year 2021 and each fiscal year thereafter, the defined
6 benefit normal cost of the defined benefit plan, less the
7 employee contribution, plus 2%, for each employee of that
8 employer who has elected or who is deemed to have elected
9 the benefits under Section 1-161 or who has made the
10 election under subsection (b) of Section 1-161; plus
11 (ii) the amount required for that fiscal year to
12 amortize any unfunded actuarial accrued liability
13 associated with the present value of liabilities
14 attributable to the employer's account under Section
15 16-158.3, determined as a level percentage of payroll over
16 a 30-year rolling amortization period.
17 In determining contributions required under item (i) of
18this subsection, the System shall determine an aggregate rate
19for all employers, expressed as a percentage of projected
20payroll.
21 In determining the contributions required under item (ii)
22of this subsection, the amount shall be computed by the System
23on the basis of the actuarial assumptions and tables used in
24the most recent actuarial valuation of the System that is
25available at the time of the computation.
26 The contributions required under this subsection (b-4)

HB5851- 52 -LRB103 40703 RPS 73498 b
1shall be paid by an employer concurrently with that employer's
2payroll payment period. The State, as the actual employer of
3an employee, shall make the required contributions under this
4subsection.
5 (c) Payment of the required State contributions and of all
6pensions, retirement annuities, death benefits, refunds, and
7other benefits granted under or assumed by this System, and
8all expenses in connection with the administration and
9operation thereof, are obligations of the State.
10 If members are paid from special trust or federal funds
11which are administered by the employing unit, whether school
12district or other unit, the employing unit shall pay to the
13System from such funds the full accruing retirement costs
14based upon that service, which, beginning July 1, 2017, shall
15be at a rate, expressed as a percentage of salary, equal to the
16total employer's normal cost, expressed as a percentage of
17payroll, as determined by the System. Employer contributions,
18based on salary paid to members from federal funds, may be
19forwarded by the distributing agency of the State of Illinois
20to the System prior to allocation, in an amount determined in
21accordance with guidelines established by such agency and the
22System. Any contribution for fiscal year 2015 collected as a
23result of the change made by Public Act 98-674 shall be
24considered a State contribution under subsection (b-3) of this
25Section.
26 (d) Effective July 1, 1986, any employer of a teacher as

HB5851- 53 -LRB103 40703 RPS 73498 b
1defined in paragraph (8) of Section 16-106 shall pay the
2employer's normal cost of benefits based upon the teacher's
3service, in addition to employee contributions, as determined
4by the System. Such employer contributions shall be forwarded
5monthly in accordance with guidelines established by the
6System.
7 However, with respect to benefits granted under Section
816-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
9of Section 16-106, the employer's contribution shall be 12%
10(rather than 20%) of the member's highest annual salary rate
11for each year of creditable service granted, and the employer
12shall also pay the required employee contribution on behalf of
13the teacher. For the purposes of Sections 16-133.4 and
1416-133.5, a teacher as defined in paragraph (8) of Section
1516-106 who is serving in that capacity while on leave of
16absence from another employer under this Article shall not be
17considered an employee of the employer from which the teacher
18is on leave.
19 (e) Beginning July 1, 1998, every employer of a teacher
20shall pay to the System an employer contribution computed as
21follows:
22 (1) Beginning July 1, 1998 through June 30, 1999, the
23 employer contribution shall be equal to 0.3% of each
24 teacher's salary.
25 (2) Beginning July 1, 1999 and thereafter, the
26 employer contribution shall be equal to 0.58% of each

HB5851- 54 -LRB103 40703 RPS 73498 b
1 teacher's salary.
2The school district or other employing unit may pay these
3employer contributions out of any source of funding available
4for that purpose and shall forward the contributions to the
5System on the schedule established for the payment of member
6contributions.
7 These employer contributions are intended to offset a
8portion of the cost to the System of the increases in
9retirement benefits resulting from Public Act 90-582.
10 Each employer of teachers is entitled to a credit against
11the contributions required under this subsection (e) with
12respect to salaries paid to teachers for the period January 1,
132002 through June 30, 2003, equal to the amount paid by that
14employer under subsection (a-5) of Section 6.6 of the State
15Employees Group Insurance Act of 1971 with respect to salaries
16paid to teachers for that period.
17 The additional 1% employee contribution required under
18Section 16-152 by Public Act 90-582 is the responsibility of
19the teacher and not the teacher's employer, unless the
20employer agrees, through collective bargaining or otherwise,
21to make the contribution on behalf of the teacher.
22 If an employer is required by a contract in effect on May
231, 1998 between the employer and an employee organization to
24pay, on behalf of all its full-time employees covered by this
25Article, all mandatory employee contributions required under
26this Article, then the employer shall be excused from paying

HB5851- 55 -LRB103 40703 RPS 73498 b
1the employer contribution required under this subsection (e)
2for the balance of the term of that contract. The employer and
3the employee organization shall jointly certify to the System
4the existence of the contractual requirement, in such form as
5the System may prescribe. This exclusion shall cease upon the
6termination, extension, or renewal of the contract at any time
7after May 1, 1998.
8 (f) If the amount of a teacher's salary for any school year
9used to determine final average salary exceeds the member's
10annual full-time salary rate with the same employer for the
11previous school year by more than 6%, the teacher's employer
12shall pay to the System, in addition to all other payments
13required under this Section and in accordance with guidelines
14established by the System, the present value of the increase
15in benefits resulting from the portion of the increase in
16salary that is in excess of 6%. This present value shall be
17computed by the System on the basis of the actuarial
18assumptions and tables used in the most recent actuarial
19valuation of the System that is available at the time of the
20computation. If a teacher's salary for the 2005-2006 school
21year is used to determine final average salary under this
22subsection (f), then the changes made to this subsection (f)
23by Public Act 94-1057 shall apply in calculating whether the
24increase in his or her salary is in excess of 6%. For the
25purposes of this Section, change in employment under Section
2610-21.12 of the School Code on or after June 1, 2005 shall

HB5851- 56 -LRB103 40703 RPS 73498 b
1constitute a change in employer. The System may require the
2employer to provide any pertinent information or
3documentation. The changes made to this subsection (f) by
4Public Act 94-1111 apply without regard to whether the teacher
5was in service on or after its effective date.
6 Whenever it determines that a payment is or may be
7required under this subsection, the System shall calculate the
8amount of the payment and bill the employer for that amount.
9The bill shall specify the calculations used to determine the
10amount due. If the employer disputes the amount of the bill, it
11may, within 30 days after receipt of the bill, apply to the
12System in writing for a recalculation. The application must
13specify in detail the grounds of the dispute and, if the
14employer asserts that the calculation is subject to subsection
15(g), (g-5), (g-10), (g-15), (g-20), or (h) of this Section,
16must include an affidavit setting forth and attesting to all
17facts within the employer's knowledge that are pertinent to
18the applicability of that subsection. Upon receiving a timely
19application for recalculation, the System shall review the
20application and, if appropriate, recalculate the amount due.
21 The employer contributions required under this subsection
22(f) may be paid in the form of a lump sum within 90 days after
23receipt of the bill. If the employer contributions are not
24paid within 90 days after receipt of the bill, then interest
25will be charged at a rate equal to the System's annual
26actuarially assumed rate of return on investment compounded

HB5851- 57 -LRB103 40703 RPS 73498 b
1annually from the 91st day after receipt of the bill. Payments
2must be concluded within 3 years after the employer's receipt
3of the bill.
4 (f-1) (Blank).
5 (g) This subsection (g) applies only to payments made or
6salary increases given on or after June 1, 2005 but before July
71, 2011. The changes made by Public Act 94-1057 shall not
8require the System to refund any payments received before July
931, 2006 (the effective date of Public Act 94-1057).
10 When assessing payment for any amount due under subsection
11(f), the System shall exclude salary increases paid to
12teachers under contracts or collective bargaining agreements
13entered into, amended, or renewed before June 1, 2005.
14 When assessing payment for any amount due under subsection
15(f), the System shall exclude salary increases paid to a
16teacher at a time when the teacher is 10 or more years from
17retirement eligibility under Section 16-132 or 16-133.2.
18 When assessing payment for any amount due under subsection
19(f), the System shall exclude salary increases resulting from
20overload work, including summer school, when the school
21district has certified to the System, and the System has
22approved the certification, that (i) the overload work is for
23the sole purpose of classroom instruction in excess of the
24standard number of classes for a full-time teacher in a school
25district during a school year and (ii) the salary increases
26are equal to or less than the rate of pay for classroom

HB5851- 58 -LRB103 40703 RPS 73498 b
1instruction computed on the teacher's current salary and work
2schedule.
3 When assessing payment for any amount due under subsection
4(f), the System shall exclude a salary increase resulting from
5a promotion (i) for which the employee is required to hold a
6certificate or supervisory endorsement issued by the State
7Teacher Certification Board that is a different certification
8or supervisory endorsement than is required for the teacher's
9previous position and (ii) to a position that has existed and
10been filled by a member for no less than one complete academic
11year and the salary increase from the promotion is an increase
12that results in an amount no greater than the lesser of the
13average salary paid for other similar positions in the
14district requiring the same certification or the amount
15stipulated in the collective bargaining agreement for a
16similar position requiring the same certification.
17 When assessing payment for any amount due under subsection
18(f), the System shall exclude any payment to the teacher from
19the State of Illinois or the State Board of Education over
20which the employer does not have discretion, notwithstanding
21that the payment is included in the computation of final
22average salary.
23 (g-5) When assessing payment for any amount due under
24subsection (f), the System shall exclude salary increases
25resulting from overload or stipend work performed in a school
26year subsequent to a school year in which the employer was

HB5851- 59 -LRB103 40703 RPS 73498 b
1unable to offer or allow to be conducted overload or stipend
2work due to an emergency declaration limiting such activities.
3 (g-10) When assessing payment for any amount due under
4subsection (f), the System shall exclude salary increases
5resulting from increased instructional time that exceeded the
6instructional time required during the 2019-2020 school year.
7 (g-15) When assessing payment for any amount due under
8subsection (f), the System shall exclude salary increases
9resulting from teaching summer school on or after May 1, 2021
10and before September 15, 2022.
11 (g-20) When assessing payment for any amount due under
12subsection (f), the System shall exclude salary increases
13necessary to bring a school board in compliance with Public
14Act 101-443 or this amendatory Act of the 103rd General
15Assembly.
16 (h) When assessing payment for any amount due under
17subsection (f), the System shall exclude any salary increase
18described in subsection (g) of this Section given on or after
19July 1, 2011 but before July 1, 2014 under a contract or
20collective bargaining agreement entered into, amended, or
21renewed on or after June 1, 2005 but before July 1, 2011.
22Notwithstanding any other provision of this Section, any
23payments made or salary increases given after June 30, 2014
24shall be used in assessing payment for any amount due under
25subsection (f) of this Section.
26 (i) The System shall prepare a report and file copies of

HB5851- 60 -LRB103 40703 RPS 73498 b
1the report with the Governor and the General Assembly by
2January 1, 2007 that contains all of the following
3information:
4 (1) The number of recalculations required by the
5 changes made to this Section by Public Act 94-1057 for
6 each employer.
7 (2) The dollar amount by which each employer's
8 contribution to the System was changed due to
9 recalculations required by Public Act 94-1057.
10 (3) The total amount the System received from each
11 employer as a result of the changes made to this Section by
12 Public Act 94-4.
13 (4) The increase in the required State contribution
14 resulting from the changes made to this Section by Public
15 Act 94-1057.
16 (i-5) For school years beginning on or after July 1, 2017,
17if the amount of a participant's salary for any school year
18exceeds the amount of the salary set for the Governor, the
19participant's employer shall pay to the System, in addition to
20all other payments required under this Section and in
21accordance with guidelines established by the System, an
22amount determined by the System to be equal to the employer
23normal cost, as established by the System and expressed as a
24total percentage of payroll, multiplied by the amount of
25salary in excess of the amount of the salary set for the
26Governor. This amount shall be computed by the System on the

HB5851- 61 -LRB103 40703 RPS 73498 b
1basis of the actuarial assumptions and tables used in the most
2recent actuarial valuation of the System that is available at
3the time of the computation. The System may require the
4employer to provide any pertinent information or
5documentation.
6 Whenever it determines that a payment is or may be
7required under this subsection, the System shall calculate the
8amount of the payment and bill the employer for that amount.
9The bill shall specify the calculations used to determine the
10amount due. If the employer disputes the amount of the bill, it
11may, within 30 days after receipt of the bill, apply to the
12System in writing for a recalculation. The application must
13specify in detail the grounds of the dispute. Upon receiving a
14timely application for recalculation, the System shall review
15the application and, if appropriate, recalculate the amount
16due.
17 The employer contributions required under this subsection
18may be paid in the form of a lump sum within 90 days after
19receipt of the bill. If the employer contributions are not
20paid within 90 days after receipt of the bill, then interest
21will be charged at a rate equal to the System's annual
22actuarially assumed rate of return on investment compounded
23annually from the 91st day after receipt of the bill. Payments
24must be concluded within 3 years after the employer's receipt
25of the bill.
26 (j) For purposes of determining the required State

HB5851- 62 -LRB103 40703 RPS 73498 b
1contribution to the System, the value of the System's assets
2shall be equal to the actuarial value of the System's assets,
3which shall be calculated as follows:
4 As of June 30, 2008, the actuarial value of the System's
5assets shall be equal to the market value of the assets as of
6that date. In determining the actuarial value of the System's
7assets for fiscal years after June 30, 2008, any actuarial
8gains or losses from investment return incurred in a fiscal
9year shall be recognized in equal annual amounts over the
105-year period following that fiscal year.
11 This subsection is inoperative on and after July 1, 2034.
12 (k) For purposes of determining the required State
13contribution to the system for a particular year, the
14actuarial value of assets shall be assumed to earn a rate of
15return equal to the system's actuarially assumed rate of
16return.
17(Source: P.A. 102-16, eff. 6-17-21; 102-525, eff. 8-20-21;
18102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 103-515, eff.
198-11-23.)
20 (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
21 Sec. 18-131. Financing; employer contributions.
22 (a) The State of Illinois shall make contributions to this
23System by appropriations of the amounts which, together with
24the contributions of participants, net earnings on
25investments, and other income, will meet the costs of

HB5851- 63 -LRB103 40703 RPS 73498 b
1maintaining and administering this System on a 100% 90% funded
2basis by the end of State fiscal year 2048 in accordance with
3actuarial recommendations.
4 (b) The Board shall determine the amount of State
5contributions required for each fiscal year on the basis of
6the actuarial tables and other assumptions adopted by the
7Board and the prescribed rate of interest, using the formula
8in subsection (c). In making its determination, the Board
9shall disregard any contributions scheduled to be received in
10a future State fiscal year under the Budget Stabilization Act.
11 (c) Beginning in State fiscal year 2049, the minimum
12contribution to the System to be made by the State for each
13State fiscal year shall be the contribution amount for the
14upcoming State fiscal year estimated in the previous year's
15actuarial valuation required by Section 18-140 plus the
16amounts required under subsection (c-5), such that the total
17assets of the System equal 100% of the total actuarial
18liabilities of the System 20 years after the State fiscal year
19during which the contribution is made. The required State
20contribution shall be determined under the entry age normal
21actuarial cost method.
22 For State fiscal years 2035 through 2048, the minimum
23contribution to the System to be made by the State for each
24State fiscal year shall be the contribution amount for the
25upcoming State fiscal year estimated in the previous year's
26actuarial valuation required by Section 18-140 plus the

HB5851- 64 -LRB103 40703 RPS 73498 b
1amounts required under subsection (c-5), such that the total
2assets of the System equal 100% of the total actuarial
3liabilities of the System 20 years after the State fiscal year
4during which the contribution is made. In making these
5determinations, the required State contribution shall be
6calculated each year as a level percentage of payroll over the
7years remaining to and including fiscal year 2048 and shall be
8determined under the projected unit credit actuarial cost
9method.
10 For State fiscal years 2026 through 2034, the minimum
11contribution to the System to be made by the State for each
12State fiscal year shall be an amount determined by the System
13to be sufficient to bring the total assets of the System up to
14100% of the total actuarial liabilities of the System by the
15end of State fiscal year 2048. In making these determinations,
16the required State contribution shall be calculated each year
17as a level percentage of payroll over the years remaining to
18and including fiscal year 2048 and shall be determined under
19the projected unit credit actuarial cost method.
20 For State fiscal years 2012 through 2025 2045, the minimum
21contribution to the System to be made by the State for each
22fiscal year shall be an amount determined by the System to be
23sufficient to bring the total assets of the System up to 90% of
24the total actuarial liabilities of the System by the end of
25State fiscal year 2045. In making these determinations, the
26required State contribution shall be calculated each year as a

HB5851- 65 -LRB103 40703 RPS 73498 b
1level percentage of payroll over the years remaining to and
2including fiscal year 2045 and shall be determined under the
3projected unit credit actuarial cost method.
4 A change in an actuarial or investment assumption that
5increases or decreases the required State contribution and
6first applies in State fiscal year 2018 and before State
7fiscal year 2035 or thereafter shall be implemented in equal
8annual amounts over a 5-year period beginning in the State
9fiscal year in which the actuarial change first applies to the
10required State contribution.
11 A change in an actuarial or investment assumption that
12increases or decreases the required State contribution and
13first applied to the State contribution in fiscal year 2014,
142015, 2016, or 2017 shall be implemented:
15 (i) as already applied in State fiscal years before
16 2018; and
17 (ii) in the portion of the 5-year period beginning in
18 the State fiscal year in which the actuarial change first
19 applied that occurs in State fiscal year 2018 or
20 thereafter, by calculating the change in equal annual
21 amounts over that 5-year period and then implementing it
22 at the resulting annual rate in each of the remaining
23 fiscal years in that 5-year period.
24 For State fiscal years 1996 through 2005, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual

HB5851- 66 -LRB103 40703 RPS 73498 b
1increments so that by State fiscal year 2011, the State is
2contributing at the rate required under this Section.
3 Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2006
5is $29,189,400.
6 Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2007
8is $35,236,800.
9 For each of State fiscal years 2008 through 2009, the
10State contribution to the System, as a percentage of the
11applicable employee payroll, shall be increased in equal
12annual increments from the required State contribution for
13State fiscal year 2007, so that by State fiscal year 2011, the
14State is contributing at the rate otherwise required under
15this Section.
16 Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2010
18is $78,832,000 and shall be made from the proceeds of bonds
19sold in fiscal year 2010 pursuant to Section 7.2 of the General
20Obligation Bond Act, less (i) the pro rata share of bond sale
21expenses determined by the System's share of total bond
22proceeds, (ii) any amounts received from the General Revenue
23Fund in fiscal year 2010, and (iii) any reduction in bond
24proceeds due to the issuance of discounted bonds, if
25applicable.
26 Notwithstanding any other provision of this Article, the

HB5851- 67 -LRB103 40703 RPS 73498 b
1total required State contribution for State fiscal year 2011
2is the amount recertified by the System on or before April 1,
32011 pursuant to Section 18-140 and shall be made from the
4proceeds of bonds sold in fiscal year 2011 pursuant to Section
57.2 of the General Obligation Bond Act, less (i) the pro rata
6share of bond sale expenses determined by the System's share
7of total bond proceeds, (ii) any amounts received from the
8General Revenue Fund in fiscal year 2011, and (iii) any
9reduction in bond proceeds due to the issuance of discounted
10bonds, if applicable.
11 Beginning in State fiscal year 2046, the minimum State
12contribution for each fiscal year shall be the amount needed
13to maintain the total assets of the System at 90% of the total
14actuarial liabilities of the System.
15 Amounts received by the System pursuant to Section 25 of
16the Budget Stabilization Act or Section 8.12 of the State
17Finance Act in any fiscal year do not reduce and do not
18constitute payment of any portion of the minimum State
19contribution required under this Article in that fiscal year.
20Such amounts shall not reduce, and shall not be included in the
21calculation of, the required State contributions under this
22Article in any future year until the System has reached a
23funding ratio of at least 90%. A reference in this Article to
24the "required State contribution" or any substantially similar
25term does not include or apply to any amounts payable to the
26System under Section 25 of the Budget Stabilization Act.

HB5851- 68 -LRB103 40703 RPS 73498 b
1 Notwithstanding any other provision of this Section, the
2required State contribution for State fiscal year 2005 and for
3fiscal year 2008 and each fiscal year thereafter, as
4calculated under this Section and certified under Section
518-140, shall not exceed an amount equal to (i) the amount of
6the required State contribution that would have been
7calculated under this Section for that fiscal year if the
8System had not received any payments under subsection (d) of
9Section 7.2 of the General Obligation Bond Act, minus (ii) the
10portion of the State's total debt service payments for that
11fiscal year on the bonds issued in fiscal year 2003 for the
12purposes of that Section 7.2, as determined and certified by
13the Comptroller, that is the same as the System's portion of
14the total moneys distributed under subsection (d) of Section
157.2 of the General Obligation Bond Act. In determining this
16maximum for State fiscal years 2008 through 2010, however, the
17amount referred to in item (i) shall be increased, as a
18percentage of the applicable employee payroll, in equal
19increments calculated from the sum of the required State
20contribution for State fiscal year 2007 plus the applicable
21portion of the State's total debt service payments for fiscal
22year 2007 on the bonds issued in fiscal year 2003 for the
23purposes of Section 7.2 of the General Obligation Bond Act, so
24that, by State fiscal year 2011, the State is contributing at
25the rate otherwise required under this Section.
26 (c-5) For State fiscal year 2035 and each State fiscal

HB5851- 69 -LRB103 40703 RPS 73498 b
1year thereafter, the contribution to the System to be made by
2the State shall include an adjustment for differences between
3the unfunded liability reported in the current actuarial
4valuation and the unfunded liability reported in the previous
5year's actuarial valuation required by Section 18-140. The
6adjustment shall be implemented in equal annual amounts over a
720-year period beginning in the State fiscal year in which the
8current actuarial valuation is used to determine the required
9State contribution under subsection (e).
10 (d) For purposes of determining the required State
11contribution to the System, the value of the System's assets
12shall be equal to the actuarial value of the System's assets,
13which shall be calculated as follows:
14 As of June 30, 2008, the actuarial value of the System's
15assets shall be equal to the market value of the assets as of
16that date. In determining the actuarial value of the System's
17assets for fiscal years after June 30, 2008, any actuarial
18gains or losses from investment return incurred in a fiscal
19year shall be recognized in equal annual amounts over the
205-year period following that fiscal year.
21 This subsection is inoperative on and after July 1, 2034.
22 (e) For purposes of determining the required State
23contribution to the system for a particular year, the
24actuarial value of assets shall be assumed to earn a rate of
25return equal to the system's actuarially assumed rate of
26return.

HB5851- 70 -LRB103 40703 RPS 73498 b
1(Source: P.A. 100-23, eff. 7-6-17.)
2 (40 ILCS 5/1-103.3 rep.)
3 Section 15. The Illinois Pension Code is amended by
4repealing Section 1-103.3.