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1		AN ACT concerning public employee benefits.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 1. Legislative intention; assist our most
5		vulnerable citizens. It is the intention of the General
6		Assembly in enacting this legislation that, by applying
7		$2,230,000,000 of the net proceeds of the sale of general
8		obligation bonds authorized by this amendatory Act of the 96th
9		General Assembly to fund pension obligations of the State, an
10		equivalent amount will be appropriated from the General Revenue
11		Fund to the Office of the Governor to be directed to State
12		agencies, in the discretion of and as determined by the
13		Governor and upon written direction of the Governor to the
14		Comptroller, to be expended for operational expenses, awards,
15		grants, and permanent improvements to fund programs and
16		services provided by community-based human service providers
17		and for State-funded human service programs to ensure that we
18		continue assisting the most vulnerable of our citizens.
19		Section 5. The General Obligation Bond Act is amended by
20		changing Sections 2, 2.5, 7.2, 9, 11, and 15 as follows:
21		(30 ILCS 330/2) (from Ch. 127, par. 652)
22		Sec. 2. Authorization for Bonds. The State of Illinois is

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1		authorized to issue, sell and provide for the retirement of
2		General Obligation Bonds of the State of Illinois for the
3		categories and specific purposes expressed in Sections 2
4		through 8 of this Act, in the total amount of $34,159,149,369
5		$30,693,149,369.
6		The bonds authorized in this Section 2 and in Section 16 of
7		this Act are herein called "Bonds".
8		Of the total amount of Bonds authorized in this Act, up to
9		$2,200,000,000 in aggregate original principal amount may be
10		issued and sold in accordance with the Baccalaureate Savings
11		Act in the form of General Obligation College Savings Bonds.
12		Of the total amount of Bonds authorized in this Act, up to
13		$300,000,000 in aggregate original principal amount may be
14		issued and sold in accordance with the Retirement Savings Act
15		in the form of General Obligation Retirement Savings Bonds.
16		Of the total amount of Bonds authorized in this Act, the
17		additional $10,000,000,000 authorized by Public Act 93-2 and
18		the $3,466,000,000 authorized by this amendatory Act of the
19		96th General Assembly this amendatory Act of the 93rd General
20		Assembly shall be used solely as provided in Section 7.2.
21		The issuance and sale of Bonds pursuant to the General
22		Obligation Bond Act is an economical and efficient method of
23		financing the long-term capital needs of the State. This Act
24		will permit the issuance of a multi-purpose General Obligation
25		Bond with uniform terms and features. This will not only lower
26		the cost of registration but also reduce the overall cost of

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1		issuing debt by improving the marketability of Illinois General
2		Obligation Bonds.
3		(Source: P.A. 95-1026, eff. 1-12-09; 96-5, eff. 4-3-09.)
4		(30 ILCS 330/2.5)
5		Sec. 2.5. Limitation on issuance of Bonds.
6		(a) Except as provided in subsection (b), no Bonds may be
7		issued if, after the issuance, in the next State fiscal year
8		after the issuance of the Bonds, the amount of debt service
9		(including principal, whether payable at maturity or pursuant
10		to mandatory sinking fund installments, and interest) on all
11		then-outstanding Bonds, other than Bonds authorized by this
12		amendatory Act of the 96th General Assembly, would exceed 7% of
13		the aggregate appropriations from the general funds (which
14		consist of the General Revenue Fund, the Common School Fund,
15		the General Revenue Common School Special Account Fund, and the
16		Education Assistance Fund) and the Road Fund for the fiscal
17		year immediately prior to the fiscal year of the issuance.
18		(b) If the Comptroller and Treasurer each consent in
19		writing, Bonds may be issued even if the issuance does not
20		comply with subsection (a).
21		(Source: P.A. 93-839, eff. 7-30-04.)
22		(30 ILCS 330/7.2)
23		Sec. 7.2. State pension funding.
24		(a) The amount of $10,000,000,000 is authorized to be used

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1		for the purpose of making contributions to the designated
2		retirement systems. For the purposes of this Section,
3		"designated retirement systems" means the State Employees'
4		Retirement System of Illinois; the Teachers' Retirement System
5		of the State of Illinois; the State Universities Retirement
6		System; the Judges Retirement System of Illinois; and the
7		General Assembly Retirement System.
8		The amount of $3,466,000,000 of Bonds authorized by this
9		amendatory Act of the 96th General Assembly is authorized to be
10		used for the purpose of making a portion of the State's Fiscal
11		Year 2010 required contributions to the designated retirement
12		systems.
13		(b) The Pension Contribution Fund is created as a special
14		fund in the State Treasury.
15		The proceeds of the additional $10,000,000,000 of Bonds
16		authorized by Public Act 93-2 this amendatory Act of the 93rd
17		General Assembly, less the amounts authorized in the Bond Sale
18		Order to be deposited directly into the capitalized interest
19		account of the General Obligation Bond Retirement and Interest
20		Fund or otherwise directly paid out for bond sale expenses
21		under Section 8, shall be deposited into the Pension
22		Contribution Fund and used as provided in this Section.
23		The proceeds of the additional $3,466,000,000 of Bonds
24		authorized by this amendatory Act of the 96th General Assembly,
25		less the amounts directly paid out for bond sale expenses under
26		Section 8, shall be deposited into the Pension Contribution

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1		Fund, and the Comptroller and the Treasurer shall, as soon as
2		practical, (i) first, transfer from the Pension Contribution
3		Fund to the General Revenue Fund or Common School Fund an
4		amount equal to the amount of payments, if any, made to the
5		designated retirement systems from the General Revenue Fund or
6		Common School Fund in State fiscal year 2010 and (ii) second,
7		make transfers from the Pension Contribution Fund to the
8		designated retirement systems pursuant to Sections 2-124,
9		14-131, 15-155, 16-158, and 18-131 of the Illinois Pension
10		Code.
11		(c) Of the amount of Bond proceeds from the bond sale
12		authorized by Public Act 93-2 first deposited into the Pension
13		Contribution Fund, there shall be reserved for transfers under
14		this subsection the sum of $300,000,000, representing the
15		required State contributions to the designated retirement
16		systems for the last quarter of State fiscal year 2003, plus
17		the sum of $1,860,000,000, representing the required State
18		contributions to the designated retirement systems for State
19		fiscal year 2004.
20		Upon the deposit of sufficient moneys from the bond sale
21		authorized by Public Act 93-2 into the Pension Contribution
22		Fund, the Comptroller and Treasurer shall immediately transfer
23		the sum of $300,000,000 from the Pension Contribution Fund to
24		the General Revenue Fund.
25		Whenever any payment of required State contributions for
26		State fiscal year 2004 is made to one of the designated

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1		retirement systems, the Comptroller and Treasurer shall, as
2		soon as practicable, transfer from the Pension Contribution
3		Fund to the General Revenue Fund an amount equal to the amount
4		of that payment to the designated retirement system. Beginning
5		on the effective date of this amendatory Act of the 93rd
6		General Assembly, the transfers from the Pension Contribution
7		Fund to the General Revenue Fund shall be suspended until June
8		30, 2004, and the remaining balance in the Pension Contribution
9		Fund shall be transferred directly to the designated retirement
10		systems as provided in Section 6z-61 of the State Finance Act.
11		On and after July 1, 2004, in the event that any amount is on
12		deposit in the Pension Contribution Fund from time to time, the
13		Comptroller and Treasurer shall continue to make such transfers
14		based on fiscal year 2005 payments until the entire amount on
15		deposit has been transferred.
16		(d) All amounts deposited into the Pension Contribution
17		Fund, other than the amounts reserved for the transfers under
18		subsection (c) from the bond sale authorized by Public Act 93-2
19		and other than amounts deposited into the Pension Contribution
20		Fund from the bond sale authorized by this amendatory Act of
21		the 96th General Assembly, shall be appropriated to the
22		designated retirement systems to reduce their actuarial
23		reserve deficiencies. The amount of the appropriation to each
24		designated retirement system shall constitute a portion of the
25		total appropriation under this subsection that is the same as
26		that retirement system's portion of the total actuarial reserve

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1		deficiency of the systems, as most recently determined by the
2		Governor's Office of Management and Budget under Section 8.12
3		of the State Finance Act.
4		With respect to proceeds from the bond sale authorized by
5		Public Act 93-2 only, within Within 15 days after any Bond
6		proceeds in excess of the amounts initially reserved under
7		subsection (c) are deposited into the Pension Contribution
8		Fund, the Governor's Office of Management and Budget shall (i)
9		allocate those proceeds among the designated retirement
10		systems in proportion to their respective actuarial reserve
11		deficiencies, as most recently determined under Section 8.12 of
12		the State Finance Act, and (ii) certify those allocations to
13		the designated retirement systems and the Comptroller.
14		Upon receiving certification of an allocation under this
15		subsection, a designated retirement system shall submit to the
16		Comptroller a voucher for the amount of its allocation. The
17		voucher shall be paid out of the amount appropriated to that
18		designated retirement system from the Pension Contribution
19		Fund pursuant to this subsection.
20		(Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04.)
21		(30 ILCS 330/9) (from Ch. 127, par. 659)
22		Sec. 9. Conditions for Issuance and Sale of Bonds -
23		Requirements for Bonds.
24		(a) Except as otherwise provided in this subsection, Bonds
25		shall be issued and sold from time to time, in one or more

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1		series, in such amounts and at such prices as may be directed
2		by the Governor, upon recommendation by the Director of the
3		Governor's Office of Management and Budget. Bonds shall be in
4		such form (either coupon, registered or book entry), in such
5		denominations, payable within 25 years from their date, subject
6		to such terms of redemption with or without premium, bear
7		interest payable at such times and at such fixed or variable
8		rate or rates, and be dated as shall be fixed and determined by
9		the Director of the Governor's Office of Management and Budget
10		in the order authorizing the issuance and sale of any series of
11		Bonds, which order shall be approved by the Governor and is
12		herein called a "Bond Sale Order"; provided however, that
13		interest payable at fixed or variable rates shall not exceed
14		that permitted in the Bond Authorization Act, as now or
15		hereafter amended. Bonds shall be payable at such place or
16		places, within or without the State of Illinois, and may be
17		made registrable as to either principal or as to both principal
18		and interest, as shall be specified in the Bond Sale Order.
19		Bonds may be callable or subject to purchase and retirement or
20		tender and remarketing as fixed and determined in the Bond Sale
21		Order. Bonds must be issued with principal or mandatory
22		redemption amounts in equal amounts, with the first maturity
23		issued occurring within the fiscal year in which the Bonds are
24		issued or within the next succeeding fiscal year, with Bonds
25		issued maturing or subject to mandatory redemption each fiscal
26		year thereafter up to 25 years. Notwithstanding any provision

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1		of this Act to the contrary, the Bonds authorized by this
2		amendatory Act of the 96th General Assembly shall be payable
3		within 5 years from their date and must be issued with
4		principal or mandatory redemption amounts in equal amounts,
5		with payment of principal or mandatory redemption beginning in
6		the first fiscal year following the fiscal year in which the
7		Bonds are issued.
8		In the case of any series of Bonds bearing interest at a
9		variable interest rate ("Variable Rate Bonds"), in lieu of
10		determining the rate or rates at which such series of Variable
11		Rate Bonds shall bear interest and the price or prices at which
12		such Variable Rate Bonds shall be initially sold or remarketed
13		(in the event of purchase and subsequent resale), the Bond Sale
14		Order may provide that such interest rates and prices may vary
15		from time to time depending on criteria established in such
16		Bond Sale Order, which criteria may include, without
17		limitation, references to indices or variations in interest
18		rates as may, in the judgment of a remarketing agent, be
19		necessary to cause Variable Rate Bonds of such series to be
20		remarketable from time to time at a price equal to their
21		principal amount, and may provide for appointment of a bank,
22		trust company, investment bank, or other financial institution
23		to serve as remarketing agent in that connection. The Bond Sale
24		Order may provide that alternative interest rates or provisions
25		for establishing alternative interest rates, different
26		security or claim priorities, or different call or amortization

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1		provisions will apply during such times as Variable Rate Bonds
2		of any series are held by a person providing credit or
3		liquidity enhancement arrangements for such Bonds as
4		authorized in subsection (b) of this Section. The Bond Sale
5		Order may also provide for such variable interest rates to be
6		established pursuant to a process generally known as an auction
7		rate process and may provide for appointment of one or more
8		financial institutions to serve as auction agents and
9		broker-dealers in connection with the establishment of such
10		interest rates and the sale and remarketing of such Bonds.
11		(b) In connection with the issuance of any series of Bonds,
12		the State may enter into arrangements to provide additional
13		security and liquidity for such Bonds, including, without
14		limitation, bond or interest rate insurance or letters of
15		credit, lines of credit, bond purchase contracts, or other
16		arrangements whereby funds are made available to retire or
17		purchase Bonds, thereby assuring the ability of owners of the
18		Bonds to sell or redeem their Bonds. The State may enter into
19		contracts and may agree to pay fees to persons providing such
20		arrangements, but only under circumstances where the Director
21		of the Governor's Office of Management and Budget certifies
22		that he or she reasonably expects the total interest paid or to
23		be paid on the Bonds, together with the fees for the
24		arrangements (being treated as if interest), would not, taken
25		together, cause the Bonds to bear interest, calculated to their
26		stated maturity, at a rate in excess of the rate that the Bonds

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1		would bear in the absence of such arrangements.
2		The State may, with respect to Bonds issued or anticipated
3		to be issued, participate in and enter into arrangements with
4		respect to interest rate protection or exchange agreements,
5		guarantees, or financial futures contracts for the purpose of
6		limiting, reducing, or managing interest rate exposure. The
7		authority granted under this paragraph, however, shall not
8		increase the principal amount of Bonds authorized to be issued
9		by law. The arrangements may be executed and delivered by the
10		Director of the Governor's Office of Management and Budget on
11		behalf of the State. Net payments for such arrangements shall
12		constitute interest on the Bonds and shall be paid from the
13		General Obligation Bond Retirement and Interest Fund. The
14		Director of the Governor's Office of Management and Budget
15		shall at least annually certify to the Governor and the State
16		Comptroller his or her estimate of the amounts of such net
17		payments to be included in the calculation of interest required
18		to be paid by the State.
19		(c) Prior to the issuance of any Variable Rate Bonds
20		pursuant to subsection (a), the Director of the Governor's
21		Office of Management and Budget shall adopt an interest rate
22		risk management policy providing that the amount of the State's
23		variable rate exposure with respect to Bonds shall not exceed
24		20%. This policy shall remain in effect while any Bonds are
25		outstanding and the issuance of Bonds shall be subject to the
26		terms of such policy. The terms of this policy may be amended

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1		from time to time by the Director of the Governor's Office of
2		Management and Budget but in no event shall any amendment cause
3		the permitted level of the State's variable rate exposure with
4		respect to Bonds to exceed 20%.
5		(Source: P.A. 92-16, eff. 6-28-01; 93-9, eff. 6-3-03; 93-666,
6		eff. 3-5-04; 93-839, eff. 7-30-04.)
7		(30 ILCS 330/11) (from Ch. 127, par. 661)
8		Sec. 11. Sale of Bonds. Except as otherwise provided in
9		this Section, Bonds shall be sold from time to time pursuant to
10		notice of sale and public bid or by negotiated sale in such
11		amounts and at such times as is directed by the Governor, upon
12		recommendation by the Director of the Governor's Office of
13		Management and Budget. At least 25%, based on total principal
14		amount, of all Bonds issued each fiscal year shall be sold
15		pursuant to notice of sale and public bid. At all times during
16		each fiscal year, no more than 75%, based on total principal
17		amount, of the Bonds issued each fiscal year, shall have been
18		sold by negotiated sale. Failure to satisfy the requirements in
19		the preceding 2 sentences shall not affect the validity of any
20		previously issued Bonds; provided that all Bonds authorized by
21		this amendatory Act of the 96th General Assembly shall not be
22		included in determining compliance for any fiscal year with the
23		requirements of the preceding 2 sentences; and further provided
24		that refunding Bonds satisfying the requirements of Section 16
25		of this Act and sold during fiscal year 2009, 2010, or 2011

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1		shall not be subject to the requirements in the preceding 2
2		sentences.
3		If any Bonds, including refunding Bonds, are to be sold by
4		negotiated sale, the Director of the Governor's Office of
5		Management and Budget shall comply with the competitive request
6		for proposal process set forth in the Illinois Procurement Code
7		and all other applicable requirements of that Code.
8		If Bonds are to be sold pursuant to notice of sale and
9		public bid, the Director of the Governor's Office of Management
10		and Budget shall, from time to time, as Bonds are to be sold,
11		advertise the sale of the Bonds in at least 2 daily newspapers,
12		one of which is published in the City of Springfield and one in
13		the City of Chicago. The sale of the Bonds shall also be
14		advertised in the volume of the Illinois Procurement Bulletin
15		that is published by the Department of Central Management
16		Services. Each of the advertisements for proposals shall be
17		published once at least 10 days prior to the date fixed for the
18		opening of the bids. The Director of the Governor's Office of
19		Management and Budget may reschedule the date of sale upon the
20		giving of such additional notice as the Director deems adequate
21		to inform prospective bidders of such change; provided,
22		however, that all other conditions of the sale shall continue
23		as originally advertised.
24		Executed Bonds shall, upon payment therefor, be delivered
25		to the purchaser, and the proceeds of Bonds shall be paid into
26		the State Treasury as directed by Section 12 of this Act.

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1		(Source: P.A. 96-18, eff. 6-26-09.)
2		(30 ILCS 330/15) (from Ch. 127, par. 665)
3		Sec. 15. Computation of Principal and Interest; transfers.
4		(a) Upon each delivery of Bonds authorized to be issued
5		under this Act, the Comptroller shall compute and certify to
6		the Treasurer the total amount of principal of, interest on,
7		and premium, if any, on Bonds issued that will be payable in
8		order to retire such Bonds and the amount of principal of,
9		interest on and premium, if any, on such Bonds that will be
10		payable on each payment date according to the tenor of such
11		Bonds during the then current and each succeeding fiscal year.
12		With respect to the interest payable on variable rate bonds,
13		such certifications shall be calculated at the maximum rate of
14		interest that may be payable during the fiscal year, after
15		taking into account any credits permitted in the related
16		indenture or other instrument against the amount of such
17		interest required to be appropriated for such period pursuant
18		to subsection (c) of Section 14 of this Act. With respect to
19		the interest payable, such certifications shall include the
20		amounts certified by the Director of the Governor's Office of
21		Management and Budget under subsection (b) of Section 9 of this
22		Act.
23		On or before the last day of each month the State Treasurer
24		and Comptroller shall transfer from (1) the Road Fund with
25		respect to Bonds issued under paragraph (a) of Section 4 of

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1		this Act or Bonds issued for the purpose of refunding such
2		bonds, and from (2) the General Revenue Fund, with respect to
3		all other Bonds issued under this Act, to the General
4		Obligation Bond Retirement and Interest Fund an amount
5		sufficient to pay the aggregate of the principal of, interest
6		on, and premium, if any, on Bonds payable, by their terms on
7		the next payment date divided by the number of full calendar
8		months between the date of such Bonds and the first such
9		payment date, and thereafter, divided by the number of months
10		between each succeeding payment date after the first. Such
11		computations and transfers shall be made for each series of
12		Bonds issued and delivered. Interest payable on variable rate
13		bonds shall be calculated at the maximum rate of interest that
14		may be payable for the relevant period, after taking into
15		account any credits permitted in the related indenture or other
16		instrument against the amount of such interest required to be
17		appropriated for such period pursuant to subsection (c) of
18		Section 14 of this Act. Computations of interest shall include
19		the amounts certified by the Director of the Governor's Office
20		of Management and Budget under subsection (b) of Section 9 of
21		this Act. Interest for which moneys have already been deposited
22		into the capitalized interest account within the General
23		Obligation Bond Retirement and Interest Fund shall not be
24		included in the calculation of the amounts to be transferred
25		under this subsection. Notwithstanding any other provision in
26		this Section, the transfer provisions provided in this

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1		paragraph shall not apply to transfers made in fiscal year 2010
2		with respect to Bonds issued in fiscal year 2010 pursuant to
3		Section 7.2 of this Act. In the case of transfers made in
4		fiscal year 2010 with respect to the Bonds issued in fiscal
5		year 2010 pursuant to Section 7.2 of this Act, on or before the
6		15th day of the month prior to the required debt service
7		payment, the State Treasurer and Comptroller shall transfer
8		from the General Revenue Fund to the General Obligation Bond
9		Retirement and Interest Fund an amount sufficient to pay the
10		aggregate of the principal of, interest on, and premium, if
11		any, on the Bonds payable in that next month.
12		The transfer of monies herein and above directed is not
13		required if monies in the General Obligation Bond Retirement
14		and Interest Fund are more than the amount otherwise to be
15		transferred as herein above provided, and if the Governor or
16		his authorized representative notifies the State Treasurer and
17		Comptroller of such fact in writing.
18		(b) After the effective date of this Act, the balance of,
19		and monies directed to be included in the Capital Development
20		Bond Retirement and Interest Fund, Anti-Pollution Bond
21		Retirement and Interest Fund, Transportation Bond, Series A
22		Retirement and Interest Fund, Transportation Bond, Series B
23		Retirement and Interest Fund, and Coal Development Bond
24		Retirement and Interest Fund shall be transferred to and
25		deposited in the General Obligation Bond Retirement and
26		Interest Fund. This Fund shall be used to make debt service

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1		payments on the State's general obligation Bonds heretofore
2		issued which are now outstanding and payable from the Funds
3		herein listed as well as on Bonds issued under this Act.
4		(c) The unused portion of federal funds received for a
5		capital facilities project, as authorized by Section 3 of this
6		Act, for which monies from the Capital Development Fund have
7		been expended shall be deposited upon completion of the project
8		in the General Obligation Bond Retirement and Interest Fund.
9		Any federal funds received as reimbursement for the completed
10		construction of a capital facilities project, as authorized by
11		Section 3 of this Act, for which monies from the Capital
12		Development Fund have been expended shall be deposited in the
13		General Obligation Bond Retirement and Interest Fund.
14		(Source: P.A. 93-2, eff. 4-7-03; 93-9, eff. 6-3-03; 94-793,
15		eff. 5-19-06.)
16		Section 10. The Illinois Pension Code is amended by
17		changing Sections 2-124, 14-131, 15-155, 16-158, and 18-131 as
18		follows:
19		(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
20		Sec. 2-124. Contributions by State.
21		(a) The State shall make contributions to the System by
22		appropriations of amounts which, together with the
23		contributions of participants, interest earned on investments,
24		and other income will meet the cost of maintaining and

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1		administering the System on a 90% funded basis in accordance
2		with actuarial recommendations.
3		(b) The Board shall determine the amount of State
4		contributions required for each fiscal year on the basis of the
5		actuarial tables and other assumptions adopted by the Board and
6		the prescribed rate of interest, using the formula in
7		subsection (c).
8		(c) For State fiscal years 2011 through 2045, the minimum
9		contribution to the System to be made by the State for each
10		fiscal year shall be an amount determined by the System to be
11		sufficient to bring the total assets of the System up to 90% of
12		the total actuarial liabilities of the System by the end of
13		State fiscal year 2045. In making these determinations, the
14		required State contribution shall be calculated each year as a
15		level percentage of payroll over the years remaining to and
16		including fiscal year 2045 and shall be determined under the
17		projected unit credit actuarial cost method.
18		For State fiscal years 1996 through 2005, the State
19		contribution to the System, as a percentage of the applicable
20		employee payroll, shall be increased in equal annual increments
21		so that by State fiscal year 2011, the State is contributing at
22		the rate required under this Section.
23		Notwithstanding any other provision of this Article, the
24		total required State contribution for State fiscal year 2006 is
25		$4,157,000.
26		Notwithstanding any other provision of this Article, the

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1		total required State contribution for State fiscal year 2007 is
2		$5,220,300.
3		For each of State fiscal years 2008 through 2009 2010, the
4		State contribution to the System, as a percentage of the
5		applicable employee payroll, shall be increased in equal annual
6		increments from the required State contribution for State
7		fiscal year 2007, so that by State fiscal year 2011, the State
8		is contributing at the rate otherwise required under this
9		Section.
10		Notwithstanding any other provision of this Article, the
11		total required State contribution for State fiscal year 2010 is
12		$10,454,000 and shall be made from the proceeds of bonds sold
13		in fiscal year 2010 pursuant to Section 7.2 of the General
14		Obligation Bond Act, less (i) the pro rata share of bond sale
15		expenses determined by the System's share of total bond
16		proceeds, (ii) any amounts received from the General Revenue
17		Fund in fiscal year 2010, and (iii) any reduction in bond
18		proceeds due to the issuance of discounted bonds, if
19		applicable.
20		Beginning in State fiscal year 2046, the minimum State
21		contribution for each fiscal year shall be the amount needed to
22		maintain the total assets of the System at 90% of the total
23		actuarial liabilities of the System.
24		Amounts received by the System pursuant to Section 25 of
25		the Budget Stabilization Act or Section 8.12 of the State
26		Finance Act in any fiscal year do not reduce and do not

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1		constitute payment of any portion of the minimum State
2		contribution required under this Article in that fiscal year.
3		Such amounts shall not reduce, and shall not be included in the
4		calculation of, the required State contributions under this
5		Article in any future year until the System has reached a
6		funding ratio of at least 90%. A reference in this Article to
7		the "required State contribution" or any substantially similar
8		term does not include or apply to any amounts payable to the
9		System under Section 25 of the Budget Stabilization Act.
10		Notwithstanding any other provision of this Section, the
11		required State contribution for State fiscal year 2005 and for
12		fiscal year 2008 and each fiscal year thereafter, as calculated
13		under this Section and certified under Section 2-134, shall not
14		exceed an amount equal to (i) the amount of the required State
15		contribution that would have been calculated under this Section
16		for that fiscal year if the System had not received any
17		payments under subsection (d) of Section 7.2 of the General
18		Obligation Bond Act, minus (ii) the portion of the State's
19		total debt service payments for that fiscal year on the bonds
20		issued for the purposes of that Section 7.2, as determined and
21		certified by the Comptroller, that is the same as the System's
22		portion of the total moneys distributed under subsection (d) of
23		Section 7.2 of the General Obligation Bond Act. In determining
24		this maximum for State fiscal years 2008 through 2010, however,
25		the amount referred to in item (i) shall be increased, as a
26		percentage of the applicable employee payroll, in equal

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1		increments calculated from the sum of the required State
2		contribution for State fiscal year 2007 plus the applicable
3		portion of the State's total debt service payments for fiscal
4		year 2007 on the bonds issued for the purposes of Section 7.2
5		of the General Obligation Bond Act, so that, by State fiscal
6		year 2011, the State is contributing at the rate otherwise
7		required under this Section.
8		(d) For purposes of determining the required State
9		contribution to the System, the value of the System's assets
10		shall be equal to the actuarial value of the System's assets,
11		which shall be calculated as follows:
12		As of June 30, 2008, the actuarial value of the System's
13		assets shall be equal to the market value of the assets as of
14		that date. In determining the actuarial value of the System's
15		assets for fiscal years after June 30, 2008, any actuarial
16		gains or losses from investment return incurred in a fiscal
17		year shall be recognized in equal annual amounts over the
18		5-year period following that fiscal year.
19		(e) For purposes of determining the required State
20		contribution to the system for a particular year, the actuarial
21		value of assets shall be assumed to earn a rate of return equal
22		to the system's actuarially assumed rate of return.
23		(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950,
24		eff. 8-29-08.)
25		(40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)

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1		Sec. 14-131. Contributions by State.
2		(a) The State shall make contributions to the System by
3		appropriations of amounts which, together with other employer
4		contributions from trust, federal, and other funds, employee
5		contributions, investment income, and other income, will be
6		sufficient to meet the cost of maintaining and administering
7		the System on a 90% funded basis in accordance with actuarial
8		recommendations.
9		For the purposes of this Section and Section 14-135.08,
10		references to State contributions refer only to employer
11		contributions and do not include employee contributions that
12		are picked up or otherwise paid by the State or a department on
13		behalf of the employee.
14		(b) The Board shall determine the total amount of State
15		contributions required for each fiscal year on the basis of the
16		actuarial tables and other assumptions adopted by the Board,
17		using the formula in subsection (e).
18		The Board shall also determine a State contribution rate
19		for each fiscal year, expressed as a percentage of payroll,
20		based on the total required State contribution for that fiscal
21		year (less the amount received by the System from
22		appropriations under Section 8.12 of the State Finance Act and
23		Section 1 of the State Pension Funds Continuing Appropriation
24		Act, if any, for the fiscal year ending on the June 30
25		immediately preceding the applicable November 15 certification
26		deadline), the estimated payroll (including all forms of

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1		compensation) for personal services rendered by eligible
2		employees, and the recommendations of the actuary.
3		For the purposes of this Section and Section 14.1 of the
4		State Finance Act, the term "eligible employees" includes
5		employees who participate in the System, persons who may elect
6		to participate in the System but have not so elected, persons
7		who are serving a qualifying period that is required for
8		participation, and annuitants employed by a department as
9		described in subdivision (a)(1) or (a)(2) of Section 14-111.
10		(c) Contributions shall be made by the several departments
11		for each pay period by warrants drawn by the State Comptroller
12		against their respective funds or appropriations based upon
13		vouchers stating the amount to be so contributed. These amounts
14		shall be based on the full rate certified by the Board under
15		Section 14-135.08 for that fiscal year. From the effective date
16		of this amendatory Act of the 93rd General Assembly through the
17		payment of the final payroll from fiscal year 2004
18		appropriations, the several departments shall not make
19		contributions for the remainder of fiscal year 2004 but shall
20		instead make payments as required under subsection (a-1) of
21		Section 14.1 of the State Finance Act. The several departments
22		shall resume those contributions at the commencement of fiscal
23		year 2005.
24		(d) If an employee is paid from trust funds or federal
25		funds, the department or other employer shall pay employer
26		contributions from those funds to the System at the certified

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1		rate, unless the terms of the trust or the federal-State
2		agreement preclude the use of the funds for that purpose, in
3		which case the required employer contributions shall be paid by
4		the State. From the effective date of this amendatory Act of
5		the 93rd General Assembly through the payment of the final
6		payroll from fiscal year 2004 appropriations, the department or
7		other employer shall not pay contributions for the remainder of
8		fiscal year 2004 but shall instead make payments as required
9		under subsection (a-1) of Section 14.1 of the State Finance
10		Act. The department or other employer shall resume payment of
11		contributions at the commencement of fiscal year 2005.
12		(e) For State fiscal years 2011 through 2045, the minimum
13		contribution to the System to be made by the State for each
14		fiscal year shall be an amount determined by the System to be
15		sufficient to bring the total assets of the System up to 90% of
16		the total actuarial liabilities of the System by the end of
17		State fiscal year 2045. In making these determinations, the
18		required State contribution shall be calculated each year as a
19		level percentage of payroll over the years remaining to and
20		including fiscal year 2045 and shall be determined under the
21		projected unit credit actuarial cost method.
22		For State fiscal years 1996 through 2005, the State
23		contribution to the System, as a percentage of the applicable
24		employee payroll, shall be increased in equal annual increments
25		so that by State fiscal year 2011, the State is contributing at
26		the rate required under this Section; except that (i) for State

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1		fiscal year 1998, for all purposes of this Code and any other
2		law of this State, the certified percentage of the applicable
3		employee payroll shall be 5.052% for employees earning eligible
4		creditable service under Section 14-110 and 6.500% for all
5		other employees, notwithstanding any contrary certification
6		made under Section 14-135.08 before the effective date of this
7		amendatory Act of 1997, and (ii) in the following specified
8		State fiscal years, the State contribution to the System shall
9		not be less than the following indicated percentages of the
10		applicable employee payroll, even if the indicated percentage
11		will produce a State contribution in excess of the amount
12		otherwise required under this subsection and subsection (a):
13		9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
14		2002; 10.6% in FY 2003; and 10.8% in FY 2004.
15		Notwithstanding any other provision of this Article, the
16		total required State contribution to the System for State
17		fiscal year 2006 is $203,783,900.
18		Notwithstanding any other provision of this Article, the
19		total required State contribution to the System for State
20		fiscal year 2007 is $344,164,400.
21		For each of State fiscal years 2008 through 2009 2010, the
22		State contribution to the System, as a percentage of the
23		applicable employee payroll, shall be increased in equal annual
24		increments from the required State contribution for State
25		fiscal year 2007, so that by State fiscal year 2011, the State
26		is contributing at the rate otherwise required under this

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1		Section.
2		Notwithstanding any other provision of this Article, the
3		total required State General Revenue Fund contribution for
4		State fiscal year 2010 is $723,703,100 and shall be made from
5		the proceeds of bonds sold in fiscal year 2010 pursuant to
6		Section 7.2 of the General Obligation Bond Act, less (i) the
7		pro rata share of bond sale expenses determined by the System's
8		share of total bond proceeds, (ii) any amounts received from
9		the General Revenue Fund in fiscal year 2010, and (iii) any
10		reduction in bond proceeds due to the issuance of discounted
11		bonds, if applicable.
12		Beginning in State fiscal year 2046, the minimum State
13		contribution for each fiscal year shall be the amount needed to
14		maintain the total assets of the System at 90% of the total
15		actuarial liabilities of the System.
16		Amounts received by the System pursuant to Section 25 of
17		the Budget Stabilization Act or Section 8.12 of the State
18		Finance Act in any fiscal year do not reduce and do not
19		constitute payment of any portion of the minimum State
20		contribution required under this Article in that fiscal year.
21		Such amounts shall not reduce, and shall not be included in the
22		calculation of, the required State contributions under this
23		Article in any future year until the System has reached a
24		funding ratio of at least 90%. A reference in this Article to
25		the "required State contribution" or any substantially similar
26		term does not include or apply to any amounts payable to the

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1		System under Section 25 of the Budget Stabilization Act.
2		Notwithstanding any other provision of this Section, the
3		required State contribution for State fiscal year 2005 and for
4		fiscal year 2008 and each fiscal year thereafter, as calculated
5		under this Section and certified under Section 14-135.08, shall
6		not exceed an amount equal to (i) the amount of the required
7		State contribution that would have been calculated under this
8		Section for that fiscal year if the System had not received any
9		payments under subsection (d) of Section 7.2 of the General
10		Obligation Bond Act, minus (ii) the portion of the State's
11		total debt service payments for that fiscal year on the bonds
12		issued for the purposes of that Section 7.2, as determined and
13		certified by the Comptroller, that is the same as the System's
14		portion of the total moneys distributed under subsection (d) of
15		Section 7.2 of the General Obligation Bond Act. In determining
16		this maximum for State fiscal years 2008 through 2010, however,
17		the amount referred to in item (i) shall be increased, as a
18		percentage of the applicable employee payroll, in equal
19		increments calculated from the sum of the required State
20		contribution for State fiscal year 2007 plus the applicable
21		portion of the State's total debt service payments for fiscal
22		year 2007 on the bonds issued for the purposes of Section 7.2
23		of the General Obligation Bond Act, so that, by State fiscal
24		year 2011, the State is contributing at the rate otherwise
25		required under this Section.
26		(f) After the submission of all payments for eligible

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1		employees from personal services line items in fiscal year 2004
2		have been made, the Comptroller shall provide to the System a
3		certification of the sum of all fiscal year 2004 expenditures
4		for personal services that would have been covered by payments
5		to the System under this Section if the provisions of this
6		amendatory Act of the 93rd General Assembly had not been
7		enacted. Upon receipt of the certification, the System shall
8		determine the amount due to the System based on the full rate
9		certified by the Board under Section 14-135.08 for fiscal year
10		2004 in order to meet the State's obligation under this
11		Section. The System shall compare this amount due to the amount
12		received by the System in fiscal year 2004 through payments
13		under this Section and under Section 6z-61 of the State Finance
14		Act. If the amount due is more than the amount received, the
15		difference shall be termed the "Fiscal Year 2004 Shortfall" for
16		purposes of this Section, and the Fiscal Year 2004 Shortfall
17		shall be satisfied under Section 1.2 of the State Pension Funds
18		Continuing Appropriation Act. If the amount due is less than
19		the amount received, the difference shall be termed the "Fiscal
20		Year 2004 Overpayment" for purposes of this Section, and the
21		Fiscal Year 2004 Overpayment shall be repaid by the System to
22		the Pension Contribution Fund as soon as practicable after the
23		certification.
24		(g) For purposes of determining the required State
25		contribution to the System, the value of the System's assets
26		shall be equal to the actuarial value of the System's assets,

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1		which shall be calculated as follows:
2		As of June 30, 2008, the actuarial value of the System's
3		assets shall be equal to the market value of the assets as of
4		that date. In determining the actuarial value of the System's
5		assets for fiscal years after June 30, 2008, any actuarial
6		gains or losses from investment return incurred in a fiscal
7		year shall be recognized in equal annual amounts over the
8		5-year period following that fiscal year.
9		(h) For purposes of determining the required State
10		contribution to the system for a particular year, the actuarial
11		value of assets shall be assumed to earn a rate of return equal
12		to the system's actuarially assumed rate of return.
13		(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950,
14		eff. 8-29-08.)
15		(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
16		Sec. 15-155. Employer contributions.
17		(a) The State of Illinois shall make contributions by
18		appropriations of amounts which, together with the other
19		employer contributions from trust, federal, and other funds,
20		employee contributions, income from investments, and other
21		income of this System, will be sufficient to meet the cost of
22		maintaining and administering the System on a 90% funded basis
23		in accordance with actuarial recommendations.
24		The Board shall determine the amount of State contributions
25		required for each fiscal year on the basis of the actuarial

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1		tables and other assumptions adopted by the Board and the
2		recommendations of the actuary, using the formula in subsection
3		(a-1).
4		(a-1) For State fiscal years 2011 through 2045, the minimum
5		contribution to the System to be made by the State for each
6		fiscal year shall be an amount determined by the System to be
7		sufficient to bring the total assets of the System up to 90% of
8		the total actuarial liabilities of the System by the end of
9		State fiscal year 2045. In making these determinations, the
10		required State contribution shall be calculated each year as a
11		level percentage of payroll over the years remaining to and
12		including fiscal year 2045 and shall be determined under the
13		projected unit credit actuarial cost method.
14		For State fiscal years 1996 through 2005, the State
15		contribution to the System, as a percentage of the applicable
16		employee payroll, shall be increased in equal annual increments
17		so that by State fiscal year 2011, the State is contributing at
18		the rate required under this Section.
19		Notwithstanding any other provision of this Article, the
20		total required State contribution for State fiscal year 2006 is
21		$166,641,900.
22		Notwithstanding any other provision of this Article, the
23		total required State contribution for State fiscal year 2007 is
24		$252,064,100.
25		For each of State fiscal years 2008 through 2009 2010, the
26		State contribution to the System, as a percentage of the

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1		applicable employee payroll, shall be increased in equal annual
2		increments from the required State contribution for State
3		fiscal year 2007, so that by State fiscal year 2011, the State
4		is contributing at the rate otherwise required under this
5		Section.
6		Notwithstanding any other provision of this Article, the
7		total required State contribution for State fiscal year 2010 is
8		$702,514,000 and shall be made from the State Pensions Fund and
9		proceeds of bonds sold in fiscal year 2010 pursuant to Section
10		7.2 of the General Obligation Bond Act, less (i) the pro rata
11		share of bond sale expenses determined by the System's share of
12		total bond proceeds, (ii) any amounts received from the General
13		Revenue Fund in fiscal year 2010, (iii) any reduction in bond
14		proceeds due to the issuance of discounted bonds, if
15		applicable.
16		Beginning in State fiscal year 2046, the minimum State
17		contribution for each fiscal year shall be the amount needed to
18		maintain the total assets of the System at 90% of the total
19		actuarial liabilities of the System.
20		Amounts received by the System pursuant to Section 25 of
21		the Budget Stabilization Act or Section 8.12 of the State
22		Finance Act in any fiscal year do not reduce and do not
23		constitute payment of any portion of the minimum State
24		contribution required under this Article in that fiscal year.
25		Such amounts shall not reduce, and shall not be included in the
26		calculation of, the required State contributions under this

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1		Article in any future year until the System has reached a
2		funding ratio of at least 90%. A reference in this Article to
3		the "required State contribution" or any substantially similar
4		term does not include or apply to any amounts payable to the
5		System under Section 25 of the Budget Stabilization Act.
6		Notwithstanding any other provision of this Section, the
7		required State contribution for State fiscal year 2005 and for
8		fiscal year 2008 and each fiscal year thereafter, as calculated
9		under this Section and certified under Section 15-165, shall
10		not exceed an amount equal to (i) the amount of the required
11		State contribution that would have been calculated under this
12		Section for that fiscal year if the System had not received any
13		payments under subsection (d) of Section 7.2 of the General
14		Obligation Bond Act, minus (ii) the portion of the State's
15		total debt service payments for that fiscal year on the bonds
16		issued for the purposes of that Section 7.2, as determined and
17		certified by the Comptroller, that is the same as the System's
18		portion of the total moneys distributed under subsection (d) of
19		Section 7.2 of the General Obligation Bond Act. In determining
20		this maximum for State fiscal years 2008 through 2010, however,
21		the amount referred to in item (i) shall be increased, as a
22		percentage of the applicable employee payroll, in equal
23		increments calculated from the sum of the required State
24		contribution for State fiscal year 2007 plus the applicable
25		portion of the State's total debt service payments for fiscal
26		year 2007 on the bonds issued for the purposes of Section 7.2

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1		of the General Obligation Bond Act, so that, by State fiscal
2		year 2011, the State is contributing at the rate otherwise
3		required under this Section.
4		(b) If an employee is paid from trust or federal funds, the
5		employer shall pay to the Board contributions from those funds
6		which are sufficient to cover the accruing normal costs on
7		behalf of the employee. However, universities having employees
8		who are compensated out of local auxiliary funds, income funds,
9		or service enterprise funds are not required to pay such
10		contributions on behalf of those employees. The local auxiliary
11		funds, income funds, and service enterprise funds of
12		universities shall not be considered trust funds for the
13		purpose of this Article, but funds of alumni associations,
14		foundations, and athletic associations which are affiliated
15		with the universities included as employers under this Article
16		and other employers which do not receive State appropriations
17		are considered to be trust funds for the purpose of this
18		Article.
19		(b-1) The City of Urbana and the City of Champaign shall
20		each make employer contributions to this System for their
21		respective firefighter employees who participate in this
22		System pursuant to subsection (h) of Section 15-107. The rate
23		of contributions to be made by those municipalities shall be
24		determined annually by the Board on the basis of the actuarial
25		assumptions adopted by the Board and the recommendations of the
26		actuary, and shall be expressed as a percentage of salary for

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1		each such employee. The Board shall certify the rate to the
2		affected municipalities as soon as may be practical. The
3		employer contributions required under this subsection shall be
4		remitted by the municipality to the System at the same time and
5		in the same manner as employee contributions.
6		(c) Through State fiscal year 1995: The total employer
7		contribution shall be apportioned among the various funds of
8		the State and other employers, whether trust, federal, or other
9		funds, in accordance with actuarial procedures approved by the
10		Board. State of Illinois contributions for employers receiving
11		State appropriations for personal services shall be payable
12		from appropriations made to the employers or to the System. The
13		contributions for Class I community colleges covering earnings
14		other than those paid from trust and federal funds, shall be
15		payable solely from appropriations to the Illinois Community
16		College Board or the System for employer contributions.
17		(d) Beginning in State fiscal year 1996, the required State
18		contributions to the System shall be appropriated directly to
19		the System and shall be payable through vouchers issued in
20		accordance with subsection (c) of Section 15-165, except as
21		provided in subsection (g).
22		(e) The State Comptroller shall draw warrants payable to
23		the System upon proper certification by the System or by the
24		employer in accordance with the appropriation laws and this
25		Code.
26		(f) Normal costs under this Section means liability for

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1		pensions and other benefits which accrues to the System because
2		of the credits earned for service rendered by the participants
3		during the fiscal year and expenses of administering the
4		System, but shall not include the principal of or any
5		redemption premium or interest on any bonds issued by the Board
6		or any expenses incurred or deposits required in connection
7		therewith.
8		(g) If the amount of a participant's earnings for any
9		academic year used to determine the final rate of earnings,
10		determined on a full-time equivalent basis, exceeds the amount
11		of his or her earnings with the same employer for the previous
12		academic year, determined on a full-time equivalent basis, by
13		more than 6%, the participant's employer shall pay to the
14		System, in addition to all other payments required under this
15		Section and in accordance with guidelines established by the
16		System, the present value of the increase in benefits resulting
17		from the portion of the increase in earnings that is in excess
18		of 6%. This present value shall be computed by the System on
19		the basis of the actuarial assumptions and tables used in the
20		most recent actuarial valuation of the System that is available
21		at the time of the computation. The System may require the
22		employer to provide any pertinent information or
23		documentation.
24		Whenever it determines that a payment is or may be required
25		under this subsection (g), the System shall calculate the
26		amount of the payment and bill the employer for that amount.

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1		The bill shall specify the calculations used to determine the
2		amount due. If the employer disputes the amount of the bill, it
3		may, within 30 days after receipt of the bill, apply to the
4		System in writing for a recalculation. The application must
5		specify in detail the grounds of the dispute and, if the
6		employer asserts that the calculation is subject to subsection
7		(h) or (i) of this Section, must include an affidavit setting
8		forth and attesting to all facts within the employer's
9		knowledge that are pertinent to the applicability of subsection
10		(h) or (i). Upon receiving a timely application for
11		recalculation, the System shall review the application and, if
12		appropriate, recalculate the amount due.
13		The employer contributions required under this subsection
14		(f) may be paid in the form of a lump sum within 90 days after
15		receipt of the bill. If the employer contributions are not paid
16		within 90 days after receipt of the bill, then interest will be
17		charged at a rate equal to the System's annual actuarially
18		assumed rate of return on investment compounded annually from
19		the 91st day after receipt of the bill. Payments must be
20		concluded within 3 years after the employer's receipt of the
21		bill.
22		(h) This subsection (h) applies only to payments made or
23		salary increases given on or after June 1, 2005 but before July
24		1, 2011. The changes made by Public Act 94-1057 shall not
25		require the System to refund any payments received before July
26		31, 2006 (the effective date of Public Act 94-1057).

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1		When assessing payment for any amount due under subsection
2		(g), the System shall exclude earnings increases paid to
3		participants under contracts or collective bargaining
4		agreements entered into, amended, or renewed before June 1,
5		2005.
6		When assessing payment for any amount due under subsection
7		(g), the System shall exclude earnings increases paid to a
8		participant at a time when the participant is 10 or more years
9		from retirement eligibility under Section 15-135.
10		When assessing payment for any amount due under subsection
11		(g), the System shall exclude earnings increases resulting from
12		overload work, including a contract for summer teaching, or
13		overtime when the employer has certified to the System, and the
14		System has approved the certification, that: (i) in the case of
15		overloads (A) the overload work is for the sole purpose of
16		academic instruction in excess of the standard number of
17		instruction hours for a full-time employee occurring during the
18		academic year that the overload is paid and (B) the earnings
19		increases are equal to or less than the rate of pay for
20		academic instruction computed using the participant's current
21		salary rate and work schedule; and (ii) in the case of
22		overtime, the overtime was necessary for the educational
23		mission.
24		When assessing payment for any amount due under subsection
25		(g), the System shall exclude any earnings increase resulting
26		from (i) a promotion for which the employee moves from one

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1		classification to a higher classification under the State
2		Universities Civil Service System, (ii) a promotion in academic
3		rank for a tenured or tenure-track faculty position, or (iii) a
4		promotion that the Illinois Community College Board has
5		recommended in accordance with subsection (k) of this Section.
6		These earnings increases shall be excluded only if the
7		promotion is to a position that has existed and been filled by
8		a member for no less than one complete academic year and the
9		earnings increase as a result of the promotion is an increase
10		that results in an amount no greater than the average salary
11		paid for other similar positions.
12		(i) When assessing payment for any amount due under
13		subsection (g), the System shall exclude any salary increase
14		described in subsection (h) of this Section given on or after
15		July 1, 2011 but before July 1, 2014 under a contract or
16		collective bargaining agreement entered into, amended, or
17		renewed on or after June 1, 2005 but before July 1, 2011.
18		Notwithstanding any other provision of this Section, any
19		payments made or salary increases given after June 30, 2014
20		shall be used in assessing payment for any amount due under
21		subsection (g) of this Section.
22		(j) The System shall prepare a report and file copies of
23		the report with the Governor and the General Assembly by
24		January 1, 2007 that contains all of the following information:
25		(1) The number of recalculations required by the
26		changes made to this Section by Public Act 94-1057 for each

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1		employer.
2		(2) The dollar amount by which each employer's
3		contribution to the System was changed due to
4		recalculations required by Public Act 94-1057.
5		(3) The total amount the System received from each
6		employer as a result of the changes made to this Section by
7		Public Act 94-4.
8		(4) The increase in the required State contribution
9		resulting from the changes made to this Section by Public
10		Act 94-1057.
11		(k) The Illinois Community College Board shall adopt rules
12		for recommending lists of promotional positions submitted to
13		the Board by community colleges and for reviewing the
14		promotional lists on an annual basis. When recommending
15		promotional lists, the Board shall consider the similarity of
16		the positions submitted to those positions recognized for State
17		universities by the State Universities Civil Service System.
18		The Illinois Community College Board shall file a copy of its
19		findings with the System. The System shall consider the
20		findings of the Illinois Community College Board when making
21		determinations under this Section. The System shall not exclude
22		any earnings increases resulting from a promotion when the
23		promotion was not submitted by a community college. Nothing in
24		this subsection (k) shall require any community college to
25		submit any information to the Community College Board.
26		(l) For purposes of determining the required State

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1		contribution to the System, the value of the System's assets
2		shall be equal to the actuarial value of the System's assets,
3		which shall be calculated as follows:
4		As of June 30, 2008, the actuarial value of the System's
5		assets shall be equal to the market value of the assets as of
6		that date. In determining the actuarial value of the System's
7		assets for fiscal years after June 30, 2008, any actuarial
8		gains or losses from investment return incurred in a fiscal
9		year shall be recognized in equal annual amounts over the
10		5-year period following that fiscal year.
11		(m) For purposes of determining the required State
12		contribution to the system for a particular year, the actuarial
13		value of assets shall be assumed to earn a rate of return equal
14		to the system's actuarially assumed rate of return.
15		(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
16		eff. 7-31-06; 95-331, eff. 8-21-07; 95-950, eff. 8-29-08.)
17		(40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
18		Sec. 16-158. Contributions by State and other employing
19		units.
20		(a) The State shall make contributions to the System by
21		means of appropriations from the Common School Fund and other
22		State funds of amounts which, together with other employer
23		contributions, employee contributions, investment income, and
24		other income, will be sufficient to meet the cost of
25		maintaining and administering the System on a 90% funded basis

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1		in accordance with actuarial recommendations.
2		The Board shall determine the amount of State contributions
3		required for each fiscal year on the basis of the actuarial
4		tables and other assumptions adopted by the Board and the
5		recommendations of the actuary, using the formula in subsection
6		(b-3).
7		(a-1) Annually, on or before November 15, the Board shall
8		certify to the Governor the amount of the required State
9		contribution for the coming fiscal year. The certification
10		shall include a copy of the actuarial recommendations upon
11		which it is based.
12		On or before May 1, 2004, the Board shall recalculate and
13		recertify to the Governor the amount of the required State
14		contribution to the System for State fiscal year 2005, taking
15		into account the amounts appropriated to and received by the
16		System under subsection (d) of Section 7.2 of the General
17		Obligation Bond Act.
18		On or before July 1, 2005, the Board shall recalculate and
19		recertify to the Governor the amount of the required State
20		contribution to the System for State fiscal year 2006, taking
21		into account the changes in required State contributions made
22		by this amendatory Act of the 94th General Assembly.
23		(b) Through State fiscal year 1995, the State contributions
24		shall be paid to the System in accordance with Section 18-7 of
25		the School Code.
26		(b-1) Beginning in State fiscal year 1996, on the 15th day

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1		of each month, or as soon thereafter as may be practicable, the
2		Board shall submit vouchers for payment of State contributions
3		to the System, in a total monthly amount of one-twelfth of the
4		required annual State contribution certified under subsection
5		(a-1). From the effective date of this amendatory Act of the
6		93rd General Assembly through June 30, 2004, the Board shall
7		not submit vouchers for the remainder of fiscal year 2004 in
8		excess of the fiscal year 2004 certified contribution amount
9		determined under this Section after taking into consideration
10		the transfer to the System under subsection (a) of Section
11		6z-61 of the State Finance Act. These vouchers shall be paid by
12		the State Comptroller and Treasurer by warrants drawn on the
13		funds appropriated to the System for that fiscal year.
14		If in any month the amount remaining unexpended from all
15		other appropriations to the System for the applicable fiscal
16		year (including the appropriations to the System under Section
17		8.12 of the State Finance Act and Section 1 of the State
18		Pension Funds Continuing Appropriation Act) is less than the
19		amount lawfully vouchered under this subsection, the
20		difference shall be paid from the Common School Fund under the
21		continuing appropriation authority provided in Section 1.1 of
22		the State Pension Funds Continuing Appropriation Act.
23		(b-2) Allocations from the Common School Fund apportioned
24		to school districts not coming under this System shall not be
25		diminished or affected by the provisions of this Article.
26		(b-3) For State fiscal years 2011 through 2045, the minimum

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1		contribution to the System to be made by the State for each
2		fiscal year shall be an amount determined by the System to be
3		sufficient to bring the total assets of the System up to 90% of
4		the total actuarial liabilities of the System by the end of
5		State fiscal year 2045. In making these determinations, the
6		required State contribution shall be calculated each year as a
7		level percentage of payroll over the years remaining to and
8		including fiscal year 2045 and shall be determined under the
9		projected unit credit actuarial cost method.
10		For State fiscal years 1996 through 2005, the State
11		contribution to the System, as a percentage of the applicable
12		employee payroll, shall be increased in equal annual increments
13		so that by State fiscal year 2011, the State is contributing at
14		the rate required under this Section; except that in the
15		following specified State fiscal years, the State contribution
16		to the System shall not be less than the following indicated
17		percentages of the applicable employee payroll, even if the
18		indicated percentage will produce a State contribution in
19		excess of the amount otherwise required under this subsection
20		and subsection (a), and notwithstanding any contrary
21		certification made under subsection (a-1) before the effective
22		date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
23		in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
24		2003; and 13.56% in FY 2004.
25		Notwithstanding any other provision of this Article, the
26		total required State contribution for State fiscal year 2006 is

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1		$534,627,700.
2		Notwithstanding any other provision of this Article, the
3		total required State contribution for State fiscal year 2007 is
4		$738,014,500.
5		For each of State fiscal years 2008 through 2009 2010, the
6		State contribution to the System, as a percentage of the
7		applicable employee payroll, shall be increased in equal annual
8		increments from the required State contribution for State
9		fiscal year 2007, so that by State fiscal year 2011, the State
10		is contributing at the rate otherwise required under this
11		Section.
12		Notwithstanding any other provision of this Article, the
13		total required State contribution for State fiscal year 2010 is
14		$2,089,268,000 and shall be made from the proceeds of bonds
15		sold in fiscal year 2010 pursuant to Section 7.2 of the General
16		Obligation Bond Act, less (i) the pro rata share of bond sale
17		expenses determined by the System's share of total bond
18		proceeds, (ii) any amounts received from the Common School Fund
19		in fiscal year 2010, and (iii) any reduction in bond proceeds
20		due to the issuance of discounted bonds, if applicable.
21		Beginning in State fiscal year 2046, the minimum State
22		contribution for each fiscal year shall be the amount needed to
23		maintain the total assets of the System at 90% of the total
24		actuarial liabilities of the System.
25		Amounts received by the System pursuant to Section 25 of
26		the Budget Stabilization Act or Section 8.12 of the State

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

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1		percentage of the applicable employee payroll, in equal
2		increments calculated from the sum of the required State
3		contribution for State fiscal year 2007 plus the applicable
4		portion of the State's total debt service payments for fiscal
5		year 2007 on the bonds issued for the purposes of Section 7.2
6		of the General Obligation Bond Act, so that, by State fiscal
7		year 2011, the State is contributing at the rate otherwise
8		required under this Section.
9		(c) Payment of the required State contributions and of all
10		pensions, retirement annuities, death benefits, refunds, and
11		other benefits granted under or assumed by this System, and all
12		expenses in connection with the administration and operation
13		thereof, are obligations of the State.
14		If members are paid from special trust or federal funds
15		which are administered by the employing unit, whether school
16		district or other unit, the employing unit shall pay to the
17		System from such funds the full accruing retirement costs based
18		upon that service, as determined by the System. Employer
19		contributions, based on salary paid to members from federal
20		funds, may be forwarded by the distributing agency of the State
21		of Illinois to the System prior to allocation, in an amount
22		determined in accordance with guidelines established by such
23		agency and the System.
24		(d) Effective July 1, 1986, any employer of a teacher as
25		defined in paragraph (8) of Section 16-106 shall pay the
26		employer's normal cost of benefits based upon the teacher's

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

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1		employer contributions out of any source of funding available
2		for that purpose and shall forward the contributions to the
3		System on the schedule established for the payment of member
4		contributions.
5		These employer contributions are intended to offset a
6		portion of the cost to the System of the increases in
7		retirement benefits resulting from this amendatory Act of 1998.
8		Each employer of teachers is entitled to a credit against
9		the contributions required under this subsection (e) with
10		respect to salaries paid to teachers for the period January 1,
11		2002 through June 30, 2003, equal to the amount paid by that
12		employer under subsection (a-5) of Section 6.6 of the State
13		Employees Group Insurance Act of 1971 with respect to salaries
14		paid to teachers for that period.
15		The additional 1% employee contribution required under
16		Section 16-152 by this amendatory Act of 1998 is the
17		responsibility of the teacher and not the teacher's employer,
18		unless the employer agrees, through collective bargaining or
19		otherwise, to make the contribution on behalf of the teacher.
20		If an employer is required by a contract in effect on May
21		1, 1998 between the employer and an employee organization to
22		pay, on behalf of all its full-time employees covered by this
23		Article, all mandatory employee contributions required under
24		this Article, then the employer shall be excused from paying
25		the employer contribution required under this subsection (e)
26		for the balance of the term of that contract. The employer and

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

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1		subsection (f) by this amendatory Act of the 94th General
2		Assembly apply without regard to whether the teacher was in
3		service on or after its effective date.
4		Whenever it determines that a payment is or may be required
5		under this subsection, the System shall calculate the amount of
6		the payment and bill the employer for that amount. The bill
7		shall specify the calculations used to determine the amount
8		due. If the employer disputes the amount of the bill, it may,
9		within 30 days after receipt of the bill, apply to the System
10		in writing for a recalculation. The application must specify in
11		detail the grounds of the dispute and, if the employer asserts
12		that the calculation is subject to subsection (g) or (h) of
13		this Section, must include an affidavit setting forth and
14		attesting to all facts within the employer's knowledge that are
15		pertinent to the applicability of that subsection. Upon
16		receiving a timely application for recalculation, the System
17		shall review the application and, if appropriate, recalculate
18		the amount due.
19		The employer contributions required under this subsection
20		(f) may be paid in the form of a lump sum within 90 days after
21		receipt of the bill. If the employer contributions are not paid
22		within 90 days after receipt of the bill, then interest will be
23		charged at a rate equal to the System's annual actuarially
24		assumed rate of return on investment compounded annually from
25		the 91st day after receipt of the bill. Payments must be
26		concluded within 3 years after the employer's receipt of the

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1		bill.
2		(g) This subsection (g) applies only to payments made or
3		salary increases given on or after June 1, 2005 but before July
4		1, 2011. The changes made by Public Act 94-1057 shall not
5		require the System to refund any payments received before July
6		31, 2006 (the effective date of Public Act 94-1057).
7		When assessing payment for any amount due under subsection
8		(f), the System shall exclude salary increases paid to teachers
9		under contracts or collective bargaining agreements entered
10		into, amended, or renewed before June 1, 2005.
11		When assessing payment for any amount due under subsection
12		(f), the System shall exclude salary increases paid to a
13		teacher at a time when the teacher is 10 or more years from
14		retirement eligibility under Section 16-132 or 16-133.2.
15		When assessing payment for any amount due under subsection
16		(f), the System shall exclude salary increases resulting from
17		overload work, including summer school, when the school
18		district has certified to the System, and the System has
19		approved the certification, that (i) the overload work is for
20		the sole purpose of classroom instruction in excess of the
21		standard number of classes for a full-time teacher in a school
22		district during a school year and (ii) the salary increases are
23		equal to or less than the rate of pay for classroom instruction
24		computed on the teacher's current salary and work schedule.
25		When assessing payment for any amount due under subsection
26		(f), the System shall exclude a salary increase resulting from

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

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1		shall be used in assessing payment for any amount due under
2		subsection (f) of this Section.
3		(i) The System shall prepare a report and file copies of
4		the report with the Governor and the General Assembly by
5		January 1, 2007 that contains all of the following information:
6		(1) The number of recalculations required by the
7		changes made to this Section by Public Act 94-1057 for each
8		employer.
9		(2) The dollar amount by which each employer's
10		contribution to the System was changed due to
11		recalculations required by Public Act 94-1057.
12		(3) The total amount the System received from each
13		employer as a result of the changes made to this Section by
14		Public Act 94-4.
15		(4) The increase in the required State contribution
16		resulting from the changes made to this Section by Public
17		Act 94-1057.
18		(j) For purposes of determining the required State
19		contribution to the System, the value of the System's assets
20		shall be equal to the actuarial value of the System's assets,
21		which shall be calculated as follows:
22		As of June 30, 2008, the actuarial value of the System's
23		assets shall be equal to the market value of the assets as of
24		that date. In determining the actuarial value of the System's
25		assets for fiscal years after June 30, 2008, any actuarial
26		gains or losses from investment return incurred in a fiscal

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1		year shall be recognized in equal annual amounts over the
2		5-year period following that fiscal year.
3		(k) For purposes of determining the required State
4		contribution to the system for a particular year, the actuarial
5		value of assets shall be assumed to earn a rate of return equal
6		to the system's actuarially assumed rate of return.
7		(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 94-1057,
8		eff. 7-31-06; 94-1111, eff. 2-27-07; 95-331, eff. 8-21-07;
9		95-950, eff. 8-29-08.)
10		(40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
11		Sec. 18-131. Financing; employer contributions.
12		(a) The State of Illinois shall make contributions to this
13		System by appropriations of the amounts which, together with
14		the contributions of participants, net earnings on
15		investments, and other income, will meet the costs of
16		maintaining and administering this System on a 90% funded basis
17		in accordance with actuarial recommendations.
18		(b) The Board shall determine the amount of State
19		contributions required for each fiscal year on the basis of the
20		actuarial tables and other assumptions adopted by the Board and
21		the prescribed rate of interest, using the formula in
22		subsection (c).
23		(c) For State fiscal years 2011 through 2045, the minimum
24		contribution to the System to be made by the State for each
25		fiscal year shall be an amount determined by the System to be

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1		sufficient to bring the total assets of the System up to 90% of
2		the total actuarial liabilities of the System by the end of
3		State fiscal year 2045. In making these determinations, the
4		required State contribution shall be calculated each year as a
5		level percentage of payroll over the years remaining to and
6		including fiscal year 2045 and shall be determined under the
7		projected unit credit actuarial cost method.
8		For State fiscal years 1996 through 2005, the State
9		contribution to the System, as a percentage of the applicable
10		employee payroll, shall be increased in equal annual increments
11		so that by State fiscal year 2011, the State is contributing at
12		the rate required under this Section.
13		Notwithstanding any other provision of this Article, the
14		total required State contribution for State fiscal year 2006 is
15		$29,189,400.
16		Notwithstanding any other provision of this Article, the
17		total required State contribution for State fiscal year 2007 is
18		$35,236,800.
19		For each of State fiscal years 2008 through 2009 2010, the
20		State contribution to the System, as a percentage of the
21		applicable employee payroll, shall be increased in equal annual
22		increments from the required State contribution for State
23		fiscal year 2007, so that by State fiscal year 2011, the State
24		is contributing at the rate otherwise required under this
25		Section.
26		Notwithstanding any other provision of this Article, the

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1		total required State contribution for State fiscal year 2010 is
2		$78,832,000 and shall be made from the proceeds of bonds sold
3		in fiscal year 2010 pursuant to Section 7.2 of the General
4		Obligation Bond Act, less (i) the pro rata share of bond sale
5		expenses determined by the System's share of total bond
6		proceeds, (ii) any amounts received from the General Revenue
7		Fund in fiscal year 2010, and (iii) any reduction in bond
8		proceeds due to the issuance of discounted bonds, if
9		applicable.
10		Beginning in State fiscal year 2046, the minimum State
11		contribution for each fiscal year shall be the amount needed to
12		maintain the total assets of the System at 90% of the total
13		actuarial liabilities of the System.
14		Amounts received by the System pursuant to Section 25 of
15		the Budget Stabilization Act or Section 8.12 of the State
16		Finance Act in any fiscal year do not reduce and do not
17		constitute payment of any portion of the minimum State
18		contribution required under this Article in that fiscal year.
19		Such amounts shall not reduce, and shall not be included in the
20		calculation of, the required State contributions under this
21		Article in any future year until the System has reached a
22		funding ratio of at least 90%. A reference in this Article to
23		the "required State contribution" or any substantially similar
24		term does not include or apply to any amounts payable to the
25		System under Section 25 of the Budget Stabilization Act.
26		Notwithstanding any other provision of this Section, the

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

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1		which shall be calculated as follows:
2		As of June 30, 2008, the actuarial value of the System's
3		assets shall be equal to the market value of the assets as of
4		that date. In determining the actuarial value of the System's
5		assets for fiscal years after June 30, 2008, any actuarial
6		gains or losses from investment return incurred in a fiscal
7		year shall be recognized in equal annual amounts over the
8		5-year period following that fiscal year.
9		(e) For purposes of determining the required State
10		contribution to the system for a particular year, the actuarial
11		value of assets shall be assumed to earn a rate of return equal
12		to the system's actuarially assumed rate of return.
13		(Source: P.A. 94-4, eff. 6-1-05; 94-839, eff. 6-6-06; 95-950,
14		eff. 8-29-08.)
15		Section 15. The State Pension Funds Continuing
16		Appropriation Act is amended by changing Sections 1.1 and 1.2
17		as follows:
18		(40 ILCS 15/1.1)
19		Sec. 1.1. Appropriations to certain retirement systems.
20		(a) There is hereby appropriated from the General Revenue
21		Fund to the General Assembly Retirement System, on a continuing
22		monthly basis, the amount, if any, by which the total available
23		amount of all other appropriations to that retirement system
24		for the payment of State contributions is less than the total

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1		amount of the vouchers for required State contributions
2		lawfully submitted by the retirement system for that month
3		under Section 2-134 of the Illinois Pension Code.
4		(b) There is hereby appropriated from the General Revenue
5		Fund to the State Universities Retirement System, on a
6		continuing monthly basis, the amount, if any, by which the
7		total available amount of all other appropriations to that
8		retirement system for the payment of State contributions,
9		including any deficiency in the required contributions of the
10		optional retirement program established under Section 15-158.2
11		of the Illinois Pension Code, is less than the total amount of
12		the vouchers for required State contributions lawfully
13		submitted by the retirement system for that month under Section
14		15-165 of the Illinois Pension Code.
15		(c) There is hereby appropriated from the Common School
16		Fund to the Teachers' Retirement System of the State of
17		Illinois, on a continuing monthly basis, the amount, if any, by
18		which the total available amount of all other appropriations to
19		that retirement system for the payment of State contributions
20		is less than the total amount of the vouchers for required
21		State contributions lawfully submitted by the retirement
22		system for that month under Section 16-158 of the Illinois
23		Pension Code.
24		(d) There is hereby appropriated from the General Revenue
25		Fund to the Judges Retirement System of Illinois, on a
26		continuing monthly basis, the amount, if any, by which the

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1		total available amount of all other appropriations to that
2		retirement system for the payment of State contributions is
3		less than the total amount of the vouchers for required State
4		contributions lawfully submitted by the retirement system for
5		that month under Section 18-140 of the Illinois Pension Code.
6		(e) The continuing appropriations provided by this Section
7		shall first be available in State fiscal year 1996.
8		(f) For State fiscal year 2010 only, the continuing
9		appropriations provided by this Section are equal to the amount
10		certified by each System on or before December 31, 2008, less
11		(i) the gross proceeds of the bonds sold in fiscal year 2010
12		under the authorization contained in subsection (a) of Section
13		7.2 of the General Obligation Bond Act and (ii) any amounts
14		received from the State Pensions Fund.
15		(Source: P.A. 90-448, eff. 8-16-97.)
16		(40 ILCS 15/1.2)
17		Sec. 1.2. Appropriations for the State Employees'
18		Retirement System.
19		(a) From each fund from which an amount is appropriated for
20		personal services to a department or other employer under
21		Article 14 of the Illinois Pension Code, there is hereby
22		appropriated to that department or other employer, on a
23		continuing annual basis for each State fiscal year, an
24		additional amount equal to the amount, if any, by which (1) an
25		amount equal to the percentage of the personal services line

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1		item for that department or employer from that fund for that
2		fiscal year that the Board of Trustees of the State Employees'
3		Retirement System of Illinois has certified under Section
4		14-135.08 of the Illinois Pension Code to be necessary to meet
5		the State's obligation under Section 14-131 of the Illinois
6		Pension Code for that fiscal year, exceeds (2) the amounts
7		otherwise appropriated to that department or employer from that
8		fund for State contributions to the State Employees' Retirement
9		System for that fiscal year. From the effective date of this
10		amendatory Act of the 93rd General Assembly through the final
11		payment from a department or employer's personal services line
12		item for fiscal year 2004, payments to the State Employees'
13		Retirement System that otherwise would have been made under
14		this subsection (a) shall be governed by the provisions in
15		subsection (a-1).
16		(a-1) If a Fiscal Year 2004 Shortfall is certified under
17		subsection (f) of Section 14-131 of the Illinois Pension Code,
18		there is hereby appropriated to the State Employees' Retirement
19		System of Illinois on a continuing basis from the General
20		Revenue Fund an additional aggregate amount equal to the Fiscal
21		Year 2004 Shortfall.
22		(b) The continuing appropriations provided for by this
23		Section shall first be available in State fiscal year 1996.
24		(c) Beginning in Fiscal Year 2005, any continuing
25		appropriation under this Section arising out of an
26		appropriation for personal services from the Road Fund to the

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1		Department of State Police or the Secretary of State shall be
2		payable from the General Revenue Fund rather than the Road
3		Fund.
4		(d) For State fiscal year 2010 only, a continuing
5		appropriation is provided to the State Employees' Retirement
6		System equal to the amount certified by the System on or before
7		December 31, 2008, less the gross proceeds of the bonds sold in
8		fiscal year 2010 under the authorization contained in
9		subsection (a) of Section 7.2 of the General Obligation Bond
10		Act.
11		(Source: P.A. 93-665, eff. 3-5-04; 93-1067, eff. 1-15-05.)
12		Section 99. Effective date. This Act takes effect upon
13